A TERM PAPER ON

Customer Preference For Purchase of Fruit Drinks

Submitted in partial fulfillment for the award of

Degree of

Master of Business Administration Of Department of Management Studies Jai Narain Vyas University, Jodhpur (2010-2012)

Under the supervision of: Submitted by: Dr. Meeta Nihalani Dept. Of Management Studies Megha Jain MBA 2ndSemester

ACKNOWLEDGEMENT

With pleasure I extend my deep sense of gratitude to my supervisor Dr. (Mrs.) Meeta Nihalani, for her honorable guidance and encouragement. Without her valuable views this study would not have seen the light of day. Im indebted to my friends for their valuable suggestions in course of statistical work. I would also like to thank all the staff members and my family for their cooperation given in doing the work on this term paper.

Megha Jain MBA 2nd Semester

DEPARTMENT OF MANAGEMENT STUDIES JAI NARAIN VYAS UNIVERSITY JODHPUR

CERTIFICATE
This is to certify that the term paper on Customer Preference

For Purchase of Fruit Drinks has been prepared by Ms. Megha Jain in the partial fulfillment of the requirements for the award of degree M.B.A. This term paper has been prepared under my supervision and is approved for submission.

DATE:May,

, 2011

Dr.

(Mrs.) Meeta Nihalani

PLACE: Jodhpur of the Department

Head

Summary This project aims to find out the various factors influencing the consumer decision while making a purchase of a fruit drink in the different age group of in the city of Jodhpur. Background talks about various factors that have led us to undertake this study and how and to whom this report will benefit. Objectives talks of types of data the research project will generate and how these data is relevant. A statement of value of information is also included in this section. Research approach gives a non technical description of the data collection method, measurement instrument, sample and analytical techniques. The beverage market in India is worth 2074.67 Million INR. Though the major portion of the market is still dominated by the carbonated soft drinks there is major shift towards the Juice segment. There was a growth of 31.52% in the Juice segment from 2007 to 2008. As a result of this phenomenal growth, a lot of competition has entered the market. A number of new brands have flooded the market. The competition from Indian beverages such as Sugarcane Juice, Buttermilk, and Fresh Juices etc has also captured a sizeable share of the market. Due to these changes in the beverage market there is a need to identify and evaluate the reasons for the shift in the consumer purchasing pattern. This study aims to determine the factors influencing the consumer decision while buying fruit drinks in the city of Jodhpur. I also need to study the factors that are now driving the consumers purchasing decision. Also, due to the increase in the competition there is a need to determine the awareness levels for the various brands amongst the consumers. Literature review According to Oliver , Customer satisfaction has long been recognised as a process and is the difference between consumers perceived and expected performance of a product or service. In other words, customer satisfaction occurs when performance is higher than expected, while

dissatisfaction occurs when performance is lower than expected. Overall, to gain customer satisfaction, some argue that organisations need to exceed predictive expectations of customers, rather than just satisfy expectations According to Batra & Kazmi, Analyze consumer behavior, the foundation for a successful marketing strategy Consumer behavior is the mental and emotional processes and the observable behavior of consumers in the research and the consumer after the purchase of a product and service. Even Angels (et al, 1990) refers consumer behavior as the to buy action and decision making of people, goods and services for personal use. According to Schiffman and Kanuk, 2004 , if the criteria of the definition are closely monitored, it is clear that the analysis of the decision making process of consumers, the basis for any notion of consumer behavior There are four different positions to make decisions and behavior of consumers. It is argued that a first economic as consumers are exposed to imperfect competition and, above all, they are always assumed to make rational decisions to make assumptions that it is based are all aware, product solutions that they can reap the benefits and limitations of each to classify alternatives and be able to identify a better alternative. Second Passive View is completely contrary to economic factors and suggests that consumers are irrational and impulsive as they are subjected to self-centered interests of traders and have influenced marketing tools. Similarly, third, Emotional View obliged to consumers decision-making receive based on their association or an emotional feeling about certain products and services. For example, a person with special red pen or lose, you go to make rational decisions by evaluating alternatives (economically) neither the person is by marketing (passive view) will be affected. Rather, the person will try to use a pen as many of his favorite buying property. Take a look at the fourth, and probably the best known cognitive view , where consumers are considered thinking problem solver, open-minded and are actively searching for products and services that meet their needs. Consumer behavior under this view is based on information retrieval and processing conducted under the general attributes of a target. Consumer Satisfaction Consumer satisfaction and acceptance are often considered in the literature to be closely linked yet these are distinct concepts. Satisfaction is the fulfilment

and gratification of the need for a stated good or service, here, water. Consumer Acceptance Acceptance describes consumer willingness to receive and/or to tolerate. For example, a customer might accept the occurrence of a certain number of yearly supply interruptions given a certain price. Consumer acceptance and satisfaction are related, as the first is a precursor of the latter. Consumer Concerns These are expressed anxieties or unease over an object broadly defined (e.g. discoloured tap water or a proposal to change the water pricing structure). Consumer Preferences This is used primarily to mean an option that has the greatest anticipated value among a number of options. This is an economic definition and does not tap into wishes or dreams (for e.g. that safe drinking water was free, that there should be world peace) but for all practical purposes is an appropriate definition. Consumer Expectations The distinction between expectations and preferences is often blurred though the concepts are distinct. Expectation is used in three slightly differing senses in the literature. One is the act of expecting or looking forward a belief about what will happen in the future. CONSUMER PREFERENCES The underlying foundation of demand, therefore, is a model of how consumers behave. The individual consumer has a set of preferences and values whose determination are outside the realm of economics. They are no doubt dependent upon culture, education, and individual tastes,among a plethora of other factors. The measure of these values in this model for a particular good is in terms of the real opportunity cost to the consumer who purchases and consumes the good. If an individual purchases a particular good, then the opportunity cost of that purchase is the forgone goods the consumer could have bought instead.

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of performance of the organization being measured. Their satisfaction is generally measured on a five-point scale.

Objectives The basic objective of the study is to:

To understand and analyze the motivation and preference level regarding the purchase of fruit drinks in the city of Jodhpur.

To determine the product attributes influencing purchase decision of fruit drink brands. To determine the reasons for consuming various fruit drink brands. To suggest the strategy to enhance the quality of fruit drink.

Research Methodology - The researcher contacted the respondents personally with well-prepared sequentially arranged questionnaire. The questionnaire prepared, was divided into two parts, of which part one was used to gather demographic details of the respondents using the fruit drinks in the Jodhpur city and the second was related to customer preferences for the various attributes influencing purchase decision of fruit drink brands.

Research Design

Variables related Demographically classified Customer preferring fruit juice age sex education LEVEL OF SATISFACTION Customer satisfaction To

Sampling Area - The study is conducted on the respondents i.e. people who consume fruit drinks in jodhpur Population All the customers of the Jodhpur city who consumes fruit drinks. Sample size The research focused on the participants who willingly wanted to complete the instruments in their entirety. Total 100 respondents filled the questionnaire. Sampling Design The sample was designed by the convenience based random sampling method. Primary Data - Most of the data collected by the researcher was primary data through a structured questionnaire.
a.) Demographic Characteristics- gender, age and education of the respondents.

b.) Dimension of customer satisfaction with features available with fruit drinks.

Secondary data- The secondary information was collected from the published Sources such as Journals, Newspapers and Magazines and websites... Research instruments - A summated rating scale format was used, with five choices per item ranging from "highly dissatisfied to "highly satisfied ". . . In this all the questions were positively framed to study the impact of independent variable like age, gender and education on the dependent variable which is student development through knowledge. Analysis of Data - All the data collected from the respondents was feeded and tabulated and the analysis was done through the software of SPSS version 16... Hypothesis Null hypothesis H101: There is no significant difference with the factors related to fruit drink and customer satisfaction amongst people classified by age consuming fruit drink in Jodhpur. H1a1: There is significant difference with the factors related to fruit drink and customer satisfaction amongst people classified by age consuming fruit drink in Jodhpur.

H102: There is no significant difference with the factors related to fruit drink and customer satisfaction amongst people classified by gender consuming fruit drink in Jodhpur.

H1a2: There is significant difference with the factors related to fruit drink and customer satisfaction amongst people classified by gender consuming fruit drink in Jodhpur.

H103: There is no significant difference with the factors related to fruit drink and customer satisfaction amongst people classified by education consuming fruit drink in Jodhpur.

H1a3: There is significant difference with the factors related to fruit drink and customer satisfaction amongst people classified by education consuming fruit drink in Jodhpur.

Value of Information to Management This report aims to generate information on various factors influencing consumer decision while purchasing a fruit drink. Companies can utilise this information for identifying the awareness levels of their respective brands in the fruit drink category. Also companies can evaluate their positioning and promotion strategies based on the factors influencing the choice of a particular fruit drink brand.. This report also contains broad based trends on consumer profile, awareness levels, usage patterns and fruit drink category as a whole which can be utilised to make inferences about the future.

The factors recognized after the factor analysis are as under: Factor 1: Health and Hygiene 1. Packet cleanliness 2. Nutrition Value 3. Expiry Date Factor 2: Media Influence 1. Promotion Schemes 2. Brand Value 3. AD Frequency Factor 3: Convenience 1. Range of flavors 2. Availability

Factor 4: Product Features 1. Price 2. Flavor Factor 5: Package Design 1. Visual Packaging Attributes those were not important: 1. Brand Ambassador 2. Quantity Available The attribute brand ambassador and package sizes available are not a major attribute in any of the factors. This justifies the fact that almost all the major fruit drinks are not endorsed by any of the big brand ambassador barring a few such as minute maid pulpy orange (Nikhil Chinappa ) . Also the variety of the package sizes available is not affecting the consumer decision while making a purchase for fruit drinks.

C orrelation Correlation of the various brands (i.e. Appy, Real, Tropicana etc) was done with various reasons for drinking such as refreshment, enjoyment, vitality, mental lift etc. I tried to identify the various reasons that are correlated with various brands .This activity basically helped us in identifying the perception and connotations of people towards various fruit drink brands. Following are some of the inferences that I established after conducting the correlation analysis. 1. There was a significant correlation between brand Real and the following reasons for drinking : Health Enjoyment Attitude

2. There was a significant correlation between brand Tropicana and the following reasons for drinking : Health Enjoyment 3. There was a significant correlation between brand Maaza and the following reasons for drinking : Attitude 4. There was a no correlation between brand Slice and the various reasons for drinking. 5. There was a significant correlation between brand Appy and the following reasons for drinking : Socialising 6. There was a significant correlation between brand Frooti and the following reasons for drinking: Taste Mental lift 7. There was a significant correlation between brand Mangola and the following reasons for drinking : Taste Mental lift 8. There was a significant correlation between brand Pulpy Orange and the following reasons for drinking : Attitude 9. There was a significant correlation between brand Twister and the following reasons for drinking: Taste

 Mental lift 10. There was a significant correlation between brand Others (ex. Lehberry etc.) and the following reasons for drinking : Attitude Basic thirst Conclusion On the basis of the data collected and the tests conducted I have arrived at the following conclusions: With the help of correlation I was able to identify the attributes that consumers associate with the various fruit drinks and which in turn drive their purchase decision for the same. For example Tropicana is associated with health and enjoyment whereas Appy is associated with socialising. These reflect the perceptions of the various fruit drinks in the mind of the consumers. There is a high association between the channels preferred and the factors affecting these channels. The most important factor came out to be location or nearness of the channel. There is also a high association between purchase frequency and reasons for consuming fruit drinks such as refreshment and fulfilling basic thirst. In factor analysis I found out 5 factors which mainly have an impact on the purchase of a fruit drink. There were two factors which did not have any significant impact. Also, I found out that the most preferred channel for purchase in retail stores. The most preferred SKU is 200ml packs which could be due to convenience. The most preferred drink is Frooti followed by Tropicana and Real.

Questionnaire
Consumer Preferences For Purchase of Fruit Drinks

Dear Sir/Madam, I am a student of DMS, JAI NARAIN VYAS UNIVERSITY, JODHPUR and I am conducting a survey relating to my term paper on
Consumer Preferences For Purchase of Fruit Drinks

As part of my study I am analysing consumer preference and trends regarding purchase of fruit drinks. If you could spare a few minutes to complete the following survey it'd be greatly appreciated. It will take approximately 5 minutes to complete the questionnaire.

1.

Name: _________________ Education: undergraduate postgraduate graduate

2.

3.

Gender:

Male

Female

4.Age: Below20
1. Whom do you buy fruit drinks for? a) Myself b) Family c) Children d) Institutional purposes / social occasions

20 25

25 30

2. How often do you have a fruit drink? a) 1-3 times a week b) 4-6 times a week c) More than 6 times a week d) Rarely (fortnightly )

3. What quantity do you usually prefer to buy? a) 200-250 ml (Tetrapak) b) 300 ml c) 500 ml bottle d) 1 litre

4. Through which medium did you come to know about your preferred fruit drink brand? a) Hoardings and banners b) Newspaper and magazines c) TV/radio 5. Do the following reasons influence your consumption of fruit drinks? REASONS Strongly Disagree Neither Agree Strongly disagree agree Agree nor disagree d) Word of mouth e) Others ..

For social occasion ns /entertainment It acts as a refreshment It provides enjoyment It tastes very good

It satisfies my basic thirst and is filling I feel a sense of well being after consuming it It gives me vitality and Energy It relaxes me mentally It reflects my attitude

6. How important are the following factors for purchasing a fruit drink? FACTORS Flavor No. of flavours Availability and Convenience Price Cleanliness of packet/ not damaged Manufacturing date /expiry date Frequency of advertisement Brand ambassador Nutritional value/ calorie content Brand value /brand name Visual appeal of packaging Promotion schemes/discounts Very less Less No Important important important Influence Very Important

6. Rank the following fruit drinks from 1 to 5, with 1 being least preferred and 5 being most preferred: a) Real b) Tropicana c) Maaza d) Slice e) Appy f) Frooti g) Mangola h) Pulpy orange i) Twister j) Others