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CIGARAETTES BRAND PREFERNCE OF

CONSUMER ACCORDING TO
A.I.C.O.

A Thesis submitted to ROYAL SCHOOL OF


BUSINESS.,GAUHATI UNIVERSITY.

in partial fulfillment of the requirements for the degree of

MASTER OF BUSINESS ADMISTRATION


(MBA,MARKETING)

Supervised by:
BITOPI GOGOI.

Submitted By:

ABDUL ZAVED.
Roll no-147/09.
Regd no-
Table of Contents

Acknowledgment-----------------------------------------------------------------------i
Executive Summery--------------------------------------------------------------------ii
Market Segmentations & promotional strategies ----------------------------------iii

CHAPTER-1---------------------------------------------------------------------------
INTRODUCTION & OVERVIEW-----------------------------------------------
1.1 Background-------------------------------------------------------------------------
1.2 Problem Statement----------------------------------------------------------------
1.3 Scope of the research-------------------------------------------------------------
1.4 Research objectives--------------------------------------------------------------
1.5 Conclusion------------------------------------------------------------------------
1.6 Limitations-------------------------------------------------------------------------

CHAPTER-2--------------------------------------------------------------------------
LITERATURE REVIEW----------------------------------------------------------
2.1 Tobacco industry in INDIA ---------------------------------------------------
2.2.1) Article by ABDUL ZAVED-----------------------------------------------------
CHAPTER – 3
DATA ANALISIS, RESULTS/FININDINGS & DISCUSSIONS------------------
3.1) Data Analysis-----------------------------------------------------------------------------
3.2 Data gathering instruments--------------------------------------------------------------
3.3) Procedure followed to gather data------------------------------------------------------
3.4) Statement of Hypotheses------------------------------------------- ---------------------
3.5) Statistical Techniques---------------------------- ----------------------------------------
3.5.1) Data analysis-----------------------------------------------------------------------------

3.5.2) Statistical Analyses----------------------------------------------------------------------


3.5.2.1 Descriptive Statistics-------------------------------------------------------------------------
3.5.2.2 Inferential Statistics--------------------------------------------------------------------------
3.6) Methodologies-------------------------------------------------------------------------------
3.6.1 Selecting Brand names for the Questionnaire------------------------------------------
3.6.2 Data collection method---------------------------------------------------------------------
3.6.3 VARIABLE AND MEASURES----------------------------------------------------------
3.7 Solutions and Evaluation-------------------------------------------------------------
3.7.1 Frequencies-----------------------------------------------------------------------------------

CHAPTER – 4

HYPOTHESIS TESTING-----------------------------------------------------------
4.1 Hypothesis 1-------------------------------------------------------------------------------------
4.2 Hypothesis 2-------------------------------------------------------------------------------------
4.3 Hypothesis 3-------------------------------------------------------------------------------------
4.4 Hypothesis 4-------------------------------------------------------------------------------------

CONCLUSION----------------------------------------------------------------------------------

CHAPTER – 5----------------------------------------------------------------------------------

RECOMMENDATIONS-----------------------------------------------------------------------

ANNEXTURE-----------------------------------------------------------------------------------

BIBLIOGRAPHY-------------------------------------------------------------------------------
ACKNOWLEDGEMENT

My sincere thanks to my whole factuality specially Bitopi Gogoi without whose help and
guidance this project would not have been possible.

I would like to thank also all the people who cooperated with me .

I would like to thank theI Library Staff, my friends outside my class fellows for providing
help, books & materials related to this topic.

I would like to thanks my parents with out their dedication and Sacrifice to my future I
really wouldn’t be where I am today. Thanks to them all.

CIGARAETTES BRAND PREFERNCE OF


CONSUMER ACCORDING TO
AICO

Executive Summary

This Term report focus on cigarette brands preference of consumers according to “AICOL”
People belonging to same age group, income, consumption of cigarettes, occupation &
location prefer same brand of cigarettes.

Knowing the Correct market segment of each cigarette brand is very important

So that companies of different cigarette brands can apply their:-


Promotion Strategies
Placement Strategies
Price Strategies

Promotion Strategies
Advertising and all other kinds of promotion methods and awareness creation so that the
company will achieve its financial and commercial objectives by first knowing what add
will attract their consumer best and so on.

Placement Strategies

It’s basically creating a favorable image in the minds of the consumers about the product
and/or the company; let us say for example here, what the consumers think about wills
flake,gold flake,navy cut.

Price Strategies
At what price that the consumers can and will buy these brands. Is the current price suitable
for the current and potential customers? What price is suitable for what group? Loyal to
what brand?

ROYAL SCHOOL OF BUSINESS.


Certificate

I am pleased to certify that Mr.ABDUL ZAVED has satisfactorily carried out a research
work, under my supervision on the topic of “Cigarette Brand Preference of consumer
according to Age, Income, Consumption, Occupation & Living.”

CHAPTER 1
1.1 INTRODUCTION AND OVERVIEW

Let us define the term which we created for the understanding and easiness of the work at
hand and to facilitate the work for us and for the respondents a like and the word is:
“AICO” Consisting of these followings:
A= Age
I= Income
C= Consumption 1
O=Occupation

This report focuses on cigarettes brand preferences of consumers as smoking is an


addiction. If a person smokes, what he needs is a filter, tobacco & paper and most
importantly a taste which will satisfy him best. If taste has the most importance here so
consumer will prefer only one brand over others. If that is the case, how many consumers
belonging to same “AICOL”, than will prefer a specific brand? Consumer preference
defers from consumer to consumer but can be same according to “AICOL”. In order
to check the level of preference of consumer this report was started.

Contradicting to the statement “consumer preference differs from person to person” I found
that people according to AICOL use same cigarette brand. Means usually consumer from
alike set has same psychology and same kind of products usually satisfies them and
provides them value.

A Questionnaire was designed by keeping respondents in mind & their precious time that is
why it consists of only 9 questions because we already studied that the questionnaire
should not be too long and too short and we followed the teachings of our teacher. But
these 9 questions are enough to provide necessary information according to our hypothesis.
1
During my research Questionnaire filling, the respondents responded very comfortably and
easily and cooperated well with us.
I selected my respondents randomly and visited different places like: Offices, Collages,
Shopping malls, Parks, Different Pan shops & Super Markets in different locations of
guwahati city.

1.2 Problem statement:

The problem statement of my research is “to determine the consumer usage pattern of
cigarette according to AICOL i.e Age, Income, Consumption, Occupation .
It is usually thought that people from same AICO use or prefer same kind of brands, same
kind of products. It has also been observed that people from same AICO have similar likes
and dislikes, they have same psychology. I have taken this topic as this will help me in
understanding the behavior of consumers who belongs to similar group of people. And will
also help me to prove this thinking right or wrong.

1.3 Scope of the Research:

Scope of the research is to test out and confirm the known statements and study the
consumption pattern in india. I have selected six hypotheses, among which five are to
prove basically brand preference according to age, brand preference according to
income, cigarette brand preference according to consumption pattern, cigarette brand
preference according to occupation and cigarette brand preference according to
location, the last hypotheses is the consumption rate according to consumer’s
occupation. The last hypothesis is set to check the consumption rate according to
occupation. Weather occupation and consumption have any relation or not?

1.4 Research objectives :

The objectives of the study/research are to determine:


1) To determine the relationship between age of the consumers to their cigarette brand
preference
2) To determine the relationship between income of the consumers to their cigarette
brand preference.
3) To determine the relationship between consumption of the consumers to the amount
of cigarettes per day.
4) To determine the relation of cigarette brand preference to the occupation of the
consumers
5) To determine the changing behavior of cigarette consumers according to the
location they live.
6) To determine if there is any relationship between rate of consumption to the
occupation they are in.

1.5 Conclusion:
4 hypothesis were set are as follow
1) Consumers belong to same AGE group prefer same brand of cigarettes.

2) Consumers belong to same group of INCOME prefer same brand of cigarettes.

3) Consumers belong to same rate of CONSUMPTION group prefer same brand of


cigarettes.

4) Consumers belong to same OCCUPATION prefer same brand of cigarettes.

1.6 Limitations:
This study was conducted only in GUWAHATI. Due to the fact that convenience sample
was used; the findings cannot be generalized and would be low in external validity. Sample
size was selected as 263, focusing on people who are from different organizations and
different areas of GUWAHATI.

I tried to make this study comprehensive but there is always a possibility of getting wrong,
inadequate answers from few of the respondents. Therefore my results may give an idea but
cannot be 100 % correct. As in researches at bigger level respondents are paid or
compensated for their time and to provide correct answers but for this small level research
it may not be the case.

CHAPTER 2

LITERATURE REVIEW

The focus of this chapter is to provide insights to the theories that have shaped the
understanding of consumer cigarette consumption, their brand preferences according to age,
income, consumption, occupation and location.
Given the focus of this research study, it is important to have a sound understanding of tobacco
industry and usage patterns on international and national level.
2.1 INTRODUCTION:

Tobacco is a plant grown for its leaves, which are smoked, chewed, or sniffed for variety of
effects. It is considered as addiction substance because it contains the chemical nicotine.
Cigarette is a small role of finely cut tobacco for smoking, enclosed in a wrapper of thin paper.
It is addiction which means physical or psychological need for a habit- forming substance, such
as a drug or Alcohol. In physical addiction, the body adapts to a substance being used and
gradually requires increased amounts to reproduce the effects originally produced by smaller
doses. Everyone knows smoking is bad for them, but millions cannot overcome the addiction.
Let us see the work done in the relevant topics world wide

2.3 Tobacco industry in India.

Smoking may not be good for health but it is certainly good for numerous national
economies around the world, and INDIA is no exception. This article intends to highlight
the important role tobacco plays in the economics of the country, nothing more nothing less.
By ABDUL ZAVED.
MAY,2011,
Tobacco industry — growing, manufacturing, distribution and retailing — contributed 4.4 per
cent or over Rs 27.5 billion to the total GDP of INDIA including Rs 15.17 billion, including Rs
14.54 billion in excise duty and sales tax, in 1997. It is the single biggest contributor of excise
duty, six-times than that from cotton yarn. Over 5 per cent of all taxes collected in the country
comes from the tobacco industry. It employs over one million people directly or indirectly
which in terms of full-time equivalent jobs means 312,500 jobs supporting some 1.2 million
persons.
The area under tobacco cultivation increased by 30 per cent during 1990-91 to 1998-99 —
from 44,000 hectares to 57,000 hectares. The production has increased even more significantly
during the same period — by 145 per cent from 75,000 tonnes to 109,000 tonnes. The value-
added sector, the cigarette production, depicted a far more unproportionate increase of 72 per
cent — from 29.8 billion sticks to 51.5 billion sticks during the same period.
Tobacco is the only crop grown in INDIA whose yield is well above the world average and
matches the per hectare yield in the US and other developed countries — an average yield of
1,900 kilograms per hectare. Tobacco industry — growing, manufacturing, distribution and
retailing employs over one million persons directly or otherwise. This translates in the full time
equivalent of 312,500 jobs supporting approximately 1.2 million persons. Manufacturing
employs the highest number of persons — 35 per cent followed by 33 per cent by growing and
32 per cent in distribution and retail.

CHAPTER – 3

DATA ANALISIS, RESULTS/FININDINGS & DISCUSSIONS

3.1) Data Analysis


POPULATION AND SAMPLE SIZE

Defines sampling as, “the process by which a researcher selects a sample of participants for a
study from the population of interest”.

A total of 263 questionnaires were sent manually to respondents and a total of 263 completed
the questionnaire but responses of some of the questions are ambiguous

3.2 Data gathering instruments

For the purpose of this study a quantitative methodology was followed and a questionnaire was
used as the measuring instrument.
3.3 PROCEDURE FOLLOWED TO GATHER DATA

This section describes how the researcher gathered the relevant data for this study. Although
known to the population, the researcher relied on random sampling to obtain access to the
sample. The researcher has direct contact with the population and therefore had more influence
in terms of creating a sense of urgency to complete the questionnaires.
Each respondent was given a time of 15 minutes to understand and fill the questionnaire. While
making a questionnaire I tried my best to make it as easy as possible so that there will be no
difficulty for respondents to fill the questionnaire.
3.4 STATEMENT OF THE HYPOTHESES
5) Consumers belong to same AGE group prefer same brand of cigarettes.

6) Consumers belong to same group of INCOME prefer same brand of cigarettes.

7) Consumers belong to same rate of CONSUMPTION group prefer same brand of


cigarettes.

8) Consumers belong to same OCCUPATION prefer same brand of cigarettes.

3.5 STATISTICAL TECHNIQUES

3.5.1 DATA ANALYSIS

The statistical programme used for the analyses and presentation of data in this research is the
Statistical Package for the Social Sciences SPSS. The descriptive statistics utilized are based on
frequency tables and graphical illustrations to provide information on key demographic
variables in this study. This is followed with presentation of the inferential statistics based on
examination of each hypothesis formulated for the research. The upper level of statistical
significance for null hypothesis testing was set at 5%. All statistical test results were computed
at the 2-tailed level of significance in accordance with the non-directional hypotheses presented
.
3.5.2 STATISTICAL ANALYSES
The “statistical analyses are used to describe an account for the observed variability in the
behavioural data.” This involves the process of analysing the data that has been collected. Thus
the purpose of statistics is to summarise and answer questions about the behavioural variability
that was obtained in the research. Statistical analyses involve both descriptive and inferential
statistics.

3.5.2.1 DESCRIPTIVE STATISTICS

Descriptive statistics are used to describe and summarise the behaviour of the respondents in a
study. They refer to the ways in which a large number of scores or observations are reduced to
interpretable numbers such as averages and percentages.
The descriptive statistics utilized in this study are based on frequency tables and graphical
illustrations to provide information on key demographic variables, as well as the means and
standard deviations for the responses on the Work Motivation and Satisfaction Questionnaire.

3.5.2.2 INFERENTIAL STATISTICS

Inferential statistics are used to draw conclusions about the reliability and generalisability of
the findings.The inferential statistics are used to assist in answering questions such “How likely
is it that my findings are due to random extraneous factors rather than to the variables of central
interest in the study? How representative are the findings of the larger population from which
the sample was taken?” In order to test the research hypotheses, the inferential tests used
include the Pearson Product-Moment Correlation Coefficient, Multiple Regression Analysis
and Analysis of Variance (ANOVA).

3.6 METHODOLOGIY

The methodology we have adopted for the subject study is briefly discussed below
3.6.1 SELECTING BRAND NAMES FOR THE QUESTIONNAIRE
Pan shops, super markets, retailer stores and cigarette consumer were asked about brand
names & then it was put in to the questionnaire. So that respondents can identify his\her
brand of choice on this question and if their brand of choice is not there he\she can reply on
the option of “others”

3.6.2 DATA COLLECTION METHOD

Data was collected through a questionnaire which was distributed on different locations
and some were filled or noted down through an informal interview 2 form some of
respondents.

3.6.3 VARIABLE AND MEASURES

Our Questionnaire was based on eight different questions, out of which five were related
to personal information (gender, age, occupation, income & location); a Nominal Scale was
used to measure the personal data. The other remaining three were related to independent
variables like: Do you smoke? How long have you been smoking? Which brand do you
smoke? & how many cigarettes do you smoke per day).

3.7 Solutions and Evaluation

Frequencies

2
Sta tis tic s

h ow lo n g h ow w h ich
w h a t is w h a t h a ve yo u m a ny w h a t is b ra n d wh a t is w h e re
yo u r is yo u r d o yo u been cig re tte s yo u r d o you yo u r d o yo u
gender age sm o ke sm o kin g p e r d a y o cu p a tio n sm o ke in co m e live
N Va lid 263 263 2 63 226 226 227 226 220 263
M issin g 0 0 0 37 37 36 37 43 0

Interpretation:-
263 out of 263 respondents replied on gender, age, do you smoke & where do you live,
no one was found missing.

226 out of 263 respondents replied on how long you have been smoking & how many
cigarettes per day, 37 found to be missing in both.

227 out of 263 respondents replied on what is your occupation, 36 were found missing.

226 out of 263 respondents replied on which brand you smoke, 37 found to be missing.

220 out of 263 respondents replied on what is your income, 43 found to be missing.

Frequency Tables

what is your gender

Cumulative
Frequency Percent Valid Percent Percent
Valid male 233 88.6 88.6 88.6
female 30 11.4 11.4 100.0
Total 263 100.0 100.0

233 male respondents were male having valid percentage of 88.6% and 30 were female
having valid percentage of 11.4% no one was found missing.
w h a t is y o u r g e n d e r
100

80

60
Percent

8 8 .5 9 %
40

20
1 1 .4 1 %
0
m a le fe m a le

w h a t is y o u r g e n d e r
what is your age

Cumulative
Frequency Percent Valid Percent Percent
Valid 16-17 7 2.7 2.7 2.7
18-20 39 14.8 14.8 17.5
21-25 63 24.0 24.0 41.4
26-30 38 14.4 14.4 55.9
31-35 36 13.7 13.7 69.6
36-40 21 8.0 8.0 77.6
41-45 30 11.4 11.4 89.0
46-50 15 5.7 5.7 94.7
50 & above 14 5.3 5.3 100.0
Total 263 100.0 100.0

According to age group, 2.7 % belong to 16-17 age groups with 7 frequencies, 14.8 %
belong to 18-20 age groups with 39 frequencies, 24% belong to 21-25 age groups with 63
Frequencies, 14.4% belong to 26-30 age groups with 38 frequencies, 13.7% belong to 31-
35 age groups with 36 frequencies, 8 % belong to 36-40 age groups with21 frequencies,
11.4% belong to 41-45 age groups with 30 frequencies, 5.7% belong to 46-50 age groups
with 15 frequencies, 5.3% belong to 50 & above age groups with 14 frequencies
what is your age

25

20
Percent

15

23.95%
10
14.83% 14.45% 13.69%
11.41%
5
7.98%
5.7% 5.32%
2.66%
0
16-17 18-20 21-25 26-30 31-35 36-40 41-45 46-50 50 &
above

what is your age

do you smoke

Cumulative
Frequency Percent Valid Percent Percent
Valid no 25 9.5 9.5 9.5
yes 225 85.6 85.6 95.1
already quited 13 4.9 4.9 100.0
Total 263 100.0 100.0

25 respondents replied they do not smoke which is 9.5%, 225 replied yes they smoke
which is 85.6%, 13 replied that they had quite smoking which is 4.9%, no data was found
missing.
do you smoke
100

80
Percent

60

85.55%
40

20

9.51% 4.94%
0
no yes already quited

do you smoke

how long have you been smoking

Cumulative
Frequency Percent Valid Percent Percent
Valid 1-5 years 68 25.9 30.1 30.1
6-10 years 83 31.6 36.7 66.8
11 years & above 75 28.5 33.2 100.0
Total 226 85.9 100.0
Missing System 37 14.1
Total 263 100.0

Respondents were asked to reply on “how long have you been smoking”, in which 37
respondent are missing due to they are not smoker which holds 14.1%.

30.1% valid percent3 have been smoking from 1-5 years, 36.7% valid percent have been
smoking from 6-10 years & 28.5% valid percent have been smoking from 11 years &
above.

3
the percentage of non missing data
h o w lo n g h a v e y o u b e e n s m o k in g
40

30
Percent

20 36.7 3%
3 0.09 % 3 3.19 %

10

0
1 -5 ye a rs 6 -1 0 y e a rs 1 1 ye a rs & a b o ve

h o w lo n g h a v e y o u b e e n s m o k in g

how many cigrettes per day

Cumulative
Frequency Percent Valid Percent Percent
Valid 0-5 21 8.0 9.3 9.3
6-10 39 14.8 17.3 26.5
11-15 46 17.5 20.4 46.9
16-20 63 24.0 27.9 74.8
25 & above 57 21.7 25.2 100.0
Total 226 85.9 100.0
Missing System 37 14.1
Total 263 100.0

Respondents were asked to reply on “how many cigarettes per day you smoke”, in which
37 respondent are missing due to they are not smoker which holds 14.1%.

9.5% valid percent is smoking 0-5 cigarettes per day, 17.3% valid percent is smoking 6-10
cigarettes per day, 20.4% valid percent is smoking 11-15 cigarettes per day, 20.4% 27.9%
valid percent is smoking 16-20 cigarettes per day & 25% valid percent is smoking 25 &
above cigarettes per day.
h o w m a n y c ig r e t t e s p e r d a y
30
25
20
Percent

15 2 7 .8 8 % 2 5 .2 2 %
10 1 7 .2 6 % 2 0 .3 5 %
5 9 .2 9 %
0
0 -5 6 -1 0 1 1 -1 5 1 6 -2 0 25 & above

h o w m a n y c ig r e t t e s p e r d a y

what is your ocupation

Cumulative
Frequency Percent Valid Percent Percent
Valid professional 17 6.5 7.5 7.5
management 20 7.6 8.8 16.3
technical 21 8.0 9.3 25.6
sales 20 7.6 8.8 34.4
financial 19 7.2 8.4 42.7
business man 31 11.8 13.7 56.4
student 56 21.3 24.7 81.1
others 43 16.3 18.9 100.0
Total 227 86.3 100.0
Missing System 36 13.7
Total 263 100.0

Respondents were asked to reply on “what is your occupation”, in which 36 respondent are
missing because they are not smokers which holds 13.7%.

7.5% valid percent belong to professional, 8.8% valid percent belong to management,
9.3% valid percent belong to technical, 8.8% valid percent belongs to sales, 8.4% valid
percent belong to financial, 13.7% valid percent belongs to business man, 24.7% valid
percent belongs to students & 18.9% valid percent belong to others.

what is your ocupation


25

20
Percent

15
24.67%
10 18.94%
13.66%
5 7.49% 8.81% 9.25% 8.81% 8.37%

0
professionalmanageme technical sales financial business student others
nt man

w hat is your ocupation


which brand do u smoke

Cumulative
Frequency Percent Valid Percent Percent
Valid Wills flake 32 12.2 14.2 14.2
capstan 29 11.0 12.8 27.0
dunhill 15 5.7 6.6 33.6
1
diplomet .4 .4 34.1
Wills navy cut 79 30.0 35.0 69.0
3
goldflake 1.1 1.3 70.4
3
K2 1.1 1.3 71.7
marlboro 20 7.6 8.8 80.5
more 11 4.2 4.9 85.4
8
morven gold 3.0 3.5 88.9
2
pine .8 .9 89.8
5
red & white 1.9 2.2 92.0
1
555 .4 .4 92.5
2
others .8 .9 93.4
No preference 15 5.7 6.6 100.0
Total 226 85.9 100.0
Missing System 37 14.1
Total 263 100.0

Respondents were asked to reply on “which brand do you smoke”, in which 37 respondents
are missing because they are not smokers which holds 14.1%.

14.2 % smokes Benson & hedges, 12.2% smokes Capstan, 6.6% smokes Dunhill, 0.4%
smokes Diplomet, 35.0% smokes Gold leaf, 1.3% smokes Gold flake, 1.3% smokes K-2,
8.8% smokes Marlboro, 4.9% smokes More, 3.5% smokes Morven gold, 0.9% smokes
Pine, 2.2% smokes Red & White, 0.4 smokes 555, 0.9% smokes other brands.
No Preference 4 on cigarettes brand was given by 6.6% of respondent.

4
smoke more than one brand
w h ic h b r a n d d o u s
4 0

3 0

2 0
3 4 .9 6 %
Percent

1 0
1 41 .2 1 . 68 %3 %
6 . 6 4 % 8 .4 8 .3 58 . %75 %4 % 6 . 6 4 %
0 0 . 4 1 4 .1%3 . 3 %3 % 0 .2 8 .0 82 .0%14 . %48 %8 %
b ec na d sp u d s n i tgph olgi ol l od K l l dm2 f ml a mro l rpo e ir n ve e5d 5o &5t Nh e o r
o n a n. l. . m ee ata f k e b o r eo n . w. . h i t s e p r e f . . .

w h ic h b r a n d d o u s
what is your income

Cumulative
Frequency Percent Valid Percent Percent
Valid 500-1,500 25 9.5 11.4 11.4
1,600-3,000 15 5.7 6.8 18.2
4,000-5,000 30 11.4 13.6 31.8
6,000-10,000 51 19.4 23.2 55.0
11,000-20,000 61 23.2 27.7 82.7
21,000 & above 38 14.4 17.3 100.0
Total 220 83.7 100.0
Missing System 43 16.3
Total 263 100.0

Respondents were asked to reply on “what is your monthly income/pocket money”, in


which 43 respondent are missing because they are not smokers which holds 16.3%.

11.4% belongs to monthly income group of R.s 500-1,500, 6.8% belong to monthly income
group of R.s 1,600-3,000, 13.4% belongs to monthly income group of R.s 4,000-5,000,
23% belongs to monthly income group of R.s 6,000-10,000, 27.7% belongs to monthly
income group of R.s 11,000-20,000 & 17.3% belongs to monthly income group of R.s
21,000 & above.
what is your income
30

25
Percent

20

15 27.73%
23.18%
10
17.27%
13.64%
5 11.36%
6.82%
0
500-1,500 1,600-3,000 4,000-5,000 6,000-10,000 11,000- 21,000 &
20,000 above

what is your income

Due to our subject location or area was very important so we selected small areas to get our
result. For that we divided it in to 25 areas

4. HYPOTHESIS TESTING
HYPOTHESIS 1
Consumers belonging to same AGE group prefer same brand of cigarettes.

1:- Statement:
H1o:- consumers belonging to same age group do not smoke same brand of cigarette.
H1a:- consumers belonging to same age group smoke same brand of cigarette

2:- Statement:
Level Of Significance = α = 0.05
3:- Test’s Statistics:-

χ² = Σ [ (ø i,j – e i,j)²]

e i,j
i, expected frequency
o, observed frequency

4:- Critical Region:-


Rejected H1o if p-value is less then 0.05
5:- Calculation :-
Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

What is your age. * Which Brand


263 99.6% 1 .4% 264 100.0%
do you smoke.
What is your age. * Which Brand do you smoke. Crosstabulation

Count

Which Brand do you smoke.

Benson Red
& Morven &
Missing Hedges Capston Dunhill Diplomet Goldleaf Goldflake K2 Marlbore More Gold Pine White

What 16-17 7 0 0 0 0 0 0 0 0 0 0 0 0
is 18-20 30 9 0 0 0 0 0 0 0 0 0 0 0
your
21-25 0 13 29 11 0 10 0 0 0 0 0 0 0
age.
26-30 0 5 2 4 1 20 0 0 6 0 0 0 0

31-35 0 8 2 6 0 20 0 0 0 0 0 0 0

36-40 0 2 0 1 0 7 3 3 5 0 0 0 0

41-45 0 7 0 0 0 0 0 0 15 3 4 0 0

46-50 0 0 0 0 0 0 0 0 0 0 4 2 5

50 &
0 0 0 0 0 9 0 0 0 0 0 0 0
ABOVE

Total 37 34 33 22 1 66 3 3 26 3 8 2 5
what is your age

50 & above
16-17

18-20

21-25

26-30

31-35

36-40

41-45

46-50

ce
en
er
ef
pr
No rs
he
ot e
5 hit
55 w &
d
re ld
e go
pin ven
or
m e
or o
m lbor
ar
m

which brand do u smoke


e
K2 flak
ld
go leaf
ld t
go e
lom
dip hill s
n ge
du tan hed
ps &
ca on
ns
be

Chi-Square Tests
0
20

10
Count
Asymp. Sig. (2-
Value df sided) Exact Sig. (2-sided) Exact Sig. (1-sided)

Pearson Chi-Square 1.197E3a 120 .000 .b

Likelihood Ratio 786.586 120 .000 .b

Fisher's Exact Test .000 .000

Linear-by-Linear Association 242.527 1 .000 .b .b

N of Valid Cases 263

a. 132 cells (91.7%) have expected count less than 5. The minimum expected count is .03.

5:- Conclusion:-
As Asump. Sing (2-sided) is < 0.05
Therefore:
We cannot accept H1o

H1o:- consumers belonging to same age group do not smoke same brand of cigarette.

We will accept H1a that is


H1a:- consumers belonging to same age group smoke a same brand of cigarette

HYPOTHESIS 2
Consumers belonging to same INCOME group prefer same brand of cigarettes.

1). Statement:-

H1o:- consumers belonging to same income group do not smoke same brand of cigarette.

H1a:- consumers belonging to same income group smoke same brand of cigarette

2:- Level Of Significance = α = 0.05

3:- Test’s Statistics:-

χ² = Σ [ (ø i,j – e i,j)²]

e i,j
i, expected frequency
o, observed frequency

4:- Critical Region:-


Rejected H1o if p-value is less then 0.05
5:- Calculation :-
Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

What is your income. * Which


263 99.6% 1 .4% 264 100.0%
Brand do you smoke.
Count

Which Brand do you smoke.

Benson Red
& Morven &
Missing Hedges Capston Dunhill Diplomet Goldleaf Goldflake K2 Marlbore More Gold Pine White 555 Others 15 Total

What is Missing 37 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 37
your 500-
income. 1500 0 5 0 0 0 15 0 0 3 0 2 0 0 0 0 0 25

1600-
0 1 14 0 0 0 0 0 0 0 0 0 0 0 0 0 15
3000

4000-
0 0 15 2 0 0 10 0 0 0 3 0 0 0 0 0 30
5000

6000-
0 5 0 3 1 42 0 0 0 0 0 0 0 1 0 0 51
10000

11000-
0 19 0 0 0 10 3 3 20 6 0 0 0 0 0 0 61
20000

21000
& 0 7 0 0 0 0 0 10 2 2 2 1 5 5 0 38
4
Above

Total
37 37 29 5 1 81 13 3 33 8 2 1 6 5 0 263
7
B a r C h a rt
30
w h a t is y o
5 0 0 -1 ,5 0 0
25
1 ,6 0 0 -3 ,0
20 4 ,0 0 0 -5 ,0
6 ,0 0 0 -1 0 ,
15
Count

1 1 ,0 0 0 -2 0
10 2 1 ,0 0 0 &

0
b e cn as pd su tnd hi pi gl l oo gl d ol l dK f 2l m amr l o mr eo pr vi n r e d 5 &5 o5 t h Ne ro
o n a& n l m e et a af k e b o r o e n w h i t e s p r e f e
hedg g o ld re n c e
es

w h ic h b r a n d d o u s m o k e
Chi-Square Tests

Asymp. Sig. (2-


Value df sided) Exact Sig. (2-sided) Exact Sig. (1-sided)

Pearson Chi-Square 1.079E3a 90 .000 .b

Likelihood Ratio 783.648 90 .000 .b

Fisher's Exact Test .b .b

Linear-by-Linear Association 201.549 1 .000 .b .b

N of Valid Cases 263

a. 97 cells (86.6%) have expected count less than 5. The minimum expected count is .06.

5:- Calculation :-
As Asump. Sing (2-sided) is < 0.05

H1o:- consumers belonging to same income group do not smoke same brand of cigarette.

We will accept H1a that is

H1a:- consumers belonging to same age group smoke same brand of cigarette
HYPOTHESIS 3

Consumers having same rate of cigarettes CONSUMPTION5 prefers same brand of


cigarettes.

1:- Statement:-

H1o:- consumers having same rate of cigarettes consumption group do not smoke same
brand of cigarette.

H1a:- consumers having same rate of cigarettes consumption group smoke same brand of
cigarette.

2:- Level Of Significance = α = 0.05

3:- Test’s Statistics:-

χ² = Σ [ (ø i,j – e i,j)²]

e i,j
i, expected frequency
o, observed frequency
4:- Critical Region:-
Rejected H1o if p-value is less then 0.05

5
5:- Calculation :-

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

How many cigrettes per day. *


263 99.6% 1 .4% 264 100.0%
Which Brand do you smoke.

Count

Which Brand do you smoke.

Benson Red
& Morven &
Missing Hedges Capston Dunhill Diplomet Goldleaf Goldflake K2 Marlbore More Gold Pine White 555 Others 15 Total

How Missing 37 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 37
many 0-5 0 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 21
cigrettes
6-10 0 11 5 0 0 3 0 0 20 0 0 0 0 0 0 0 39
per day.
11-15 0 4 1 9 1 29 0 0 2 0 0 0 0 0 0 0 46

16-20 0 3 2 2 0 38 3 3 7 0 0 0 0 5 0 0 63

25 &
0 15 0 0 0 0 0 0 13 11 8 2 5 1 2 0 57
Above

Total 37 47 29 15 1 81 3 3 17 11 8 2 5 1 2 0 263
How many cigrettes per day. * Which Brand do you smoke. Crosstabulation
B a r C h a rt

25 h o w m a n y c ig r e t te s p e r
day
0 -5
6 -1 0
20 1 1 -1 5
1 6 -2 0
25 & above

15
Count

10

0
b e n s coa p sdt u n h ill
d ip log o ld leg o ld fl K 2 m a r lbm o r em o r v p in e r e d & 5 5 5 o th e r N o
n & an m et af ake o ro en w h ite s p re fe r
hedge g o ld ence
s

w h ic h b r a n d d o u s m o k e
Chi-Square Tests

Asymp. Sig. Exact Sig. (2- Exact Sig. (1- Point


Value df (2-sided) sided) sided) Probability

Pearson Chi-Square 9.423E2a 75 .000 .000

Likelihood Ratio 735.291 75 .000 .000

Fisher's Exact Test .000 .000

Linear-by-Linear
1.984E2b 1 .000 .000 .000 .000
Association

N of Valid Cases 263

a. 79 cells (82.3%) have expected count less than 5. The minimum expected count is .08.

b. The standardized statistic is .000.

5:- Conclusion:-
As Asump. Sing (2-sided) is < 0.05 ,
Therefore
We can not accept H1o

H1o:- consumers having same rate of cigarettes consumption group do not smoke same
brand of cigarette.

We will accept H1a that is

H1a:- consumers having same rate of cigarettes consumption group smoke same brand of
cigarette.
HYPOTHESIS 4

Consumers belonging to same OCUPATION prefers same brand of cigarettes.

1:- Statement:-

H1o:- consumers belonging to same occupation group do not smoke same brand of
cigarette.

H1a:- consumers belonging to same occupation smoke same brand of cigarette

2:- Level Of Significance = α = 0.05

3:- Test’s Statistics:-

χ² = Σ [ (ø i,j – e i,j)²]

e i,j
i, expected frequency
o, observed frequency
4:- Critical Region:-
Rejected H1o if p-value is less then 0.05
Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Occupation *
Which Brand do 263 99.6% 1 .4% 264 100.0%
you smoke.

Occupation * Which Brand do you smoke. Crosstabulation

Count

Which Brand do you smoke.

Red
Benson & Ot
& Mor Morve Whit her
Missing Hedges Capston Dunhill Diplomet Goldleaf Goldflake K2 Marlbore e n Gold Pine e 555 s 15 Total

Occupation Missing 37 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 36

Professional 0 10 0 2 0 3 0 0 2 0 0 0 0 0 0 0 17

Management 0 11 1 6 0 2 0 0 0 0 0 0 0 0 0 0 20

Technical 0 0 21 0 0 0 0 0 0 0 0 0 0 0 0 0 21

Sales 0 0 4 15 1 0 0 0 0 0 0 0 0 0 0 0 20

Finance 0 2 0 3 0 12 0 0 2 0 0 0 0 0 0 0 19

Businessman 0 5 0 3 0 21 0 0 0 0 0 0 0 0 0 0 31

Student 0 0 0 0 0 22 1 3 20 11 8 2 5 1 2 0 68

Others
0 0 0 0 0 29 2 0 0 0 8 0 0 0 0 31
0

Total 37 32 29 30 1 79 3 3 20 11 8 2 5 1 2 0 263
B a r C h a rt

30 w h a t is y o u r o c u p a t io n
p r o f e s s io n a l
m anagem ent
t e c h n ic a l
25
s a le s
f in a n c ia l
b u s in e s s m a n
20
s tu d e n t
o th e rs
Count

15

10

0
b e n scoa p sd tu n h dillip log o ld le
g o ld f lK 2 m a r lbm o r em o r vp in e r e d &5 5 5 o t h e rN o
n & an m et af ake o ro en w h it e s p re fe r
hedge g o ld ence
s

w h ic h b r a n d d o u s m o k e
Chi-Square Tests

Asymp. Sig. (2-


Value df sided) Exact Sig. (2-sided) Exact Sig. (1-sided)

Pearson Chi-Square 1.166E3a 120 .000 .b

Likelihood Ratio 824.624 120 .000 .b

Fisher's Exact Test .000 .000

Linear-by-Linear Association 196.418 1 .000 .b .b

N of Valid Cases 263

a. 130 cells (90.3%) have expected count less than 5. The minimum expected count is .06.

5:- Calculation :-
As Asump. Sing (2-sided) is < 0.05 ,
Therefore
H1o:- consumers belonging to same occupation do not smoke same brand of cigarette.

We will accept H1a that is

H1a:- consumers belonging to same occupation smoke same brand of cigarette.


CHAPTER – 5

CONCLUSION

The Top Three most preferred cigarette brands


1st = wills navy cut
With 79 out 263 respondents smoke it having 35%.
2nd = wills flake
With 32 out of 236 respondents smoke it having 14.2%
3rd =wills classic.
With 29 out of 263 respondents smoke it having 12.8%

RECOMMENDATIONS
Target Segments of Gold leaf:-
Age: - 18-20
Income: - 11,000 – 20,000
Consumption: - 25 & above
Occupation: - students
Location: - East

Target Segment of Benson & hedges:-


Age: - 41-45
Income: - 21,000 & above
Consumption: - 16 - 20
Occupation: - Financials
Location: -East

Target Segment of Capstan:-


Age: - 21-25
Income: - 6,000 – 10,000
Consumption: - 16- 20
Occupation: - Others
Location: - North

ANNEXTURE

Questionnaire
Please fill out this form
1.
What is your gender?

Female Mal
e

2.
Your age

16 - 17 18 – 20 21 - 25 26 – 30 31 – 35

36 – 40 41 – 45 46 - 50 50 & above

3.
Do you smoke

If NO so go to Q.9
Yes No Already Quitted

4.
how long have you been smoking

1 year - 5 years 6 years - 10 years 11 years & above

5.
how many cigarettes per day

0-5 6 - 10 11 - 15 16 – 20 25 & above

6.
Your occupation

kindly tick your occupation


Professional Management Technical Sales

Financial Business man Student Other

7. Tick the brand you smoke

kindly tick only one brand


wills Flake Wills Classic
Dunhill Black
Wills Navy Cut Gold flake
India kings Marlboro

insignia
More
Pine charminar
555 Other

8.
Your monthly income\ pocket money

500 - 1500 1600 – 3000 4000 - 5000

6000 - 10,000 11,000 - 20,000 21,000 & above

117

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