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Summary
This project aims to find out the various factors influencing the consumer
decision while making a purchase of a fruit drink in the age group of 19-30 in
the city of Pune. 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.
Due to the 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 age group 19-30 in the city of Pune.
There is also need to study the factors that are now driving the consumer’s
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. With the availability of a number of channels of distribution for the
beverages in India, will also try to identify the most preferred shopping channel
of beverages for a consumer.
Objectives
To determine the factors influencing the consumer decision while buying fruit
drinks in the age group 19-30 in the city of Pune.
1. Secondary Research
External secondary data has been generated to obtain volume of sales
regarding beverage markets, fruit drinks, each of the brands and the positioning
of each of the brands.
Measurement Instruments:
The data was collected from 100 samples for the analysis. The main
demographics targeted were the younger age group as they are more health
conscious and aware of such health drinks. Also tried to focus more on the
college going crowd and young professionals as they would be more interested
in trying out new products and were more conscious.
Buyers who have been consuming fruit drinks were better able to answer the
questions regarding the influencing factors and the reasons for their
consumption and purchase. The samples collected from internet have also been
very valuable in the research.
Analysis Techniques
1. The analysis techniques used have been on SPSS and the tests were
performed to ascertain the factors influencing the consumer decision
while buying fruit drinks.
2. Factor analysis was conducted to discern out of the 13 factors mainly
which factors influence the buying habits of the consumers. Ultimately I
identified 5 factors which mainly have an influence.
3. Also conducted correlation tests to find out the various reasons for
purchasing any particular brand of fruit drink.
Limitations:
1. Packet cleanliness
2. Nutrition Value
3. Expiry Date
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
1. The perceptual maps show the mapping of different factors in the minds
of the customers and the association between them. The data was
reduced from many attributes to 5 factors that have similar attributes.
3. The factors help the company to know how the product is currently
mapped in the customer’s mind. If a target consumer is focused upon
then the factors can be changed and a different map can be formed.
4. 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.
CrossTabs
SKU
1
200 ml 300 ml 500 ml litre Total
purchasefrequen 1-3 times 25 2 5 2 34
cy 4-6 times 15 6 6 0 27
more than 6
7 1 4 4 16
times
rarely 11 1 5 6 23
Total 58 10 20 12 100
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-
19.117a 9 .024
Square
Likelihood Ratio 20.380 9 .016
Linear-by-Linear
8.109 1 .004
Association
N of Valid Cases 100
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-
19.117a 9 .024
Square
Likelihood Ratio 20.380 9 .016
Linear-by-Linear
8.109 1 .004
Association
1. 10 cells (62.5%) have expected count less
than 5. The minimum expected count is
1.60.
Since p value is less than alpha i.e. .05 (95% confidence level), therefore h0 is
rejected. This shows that there is high association between purchase frequency
and SKU or quantity packs. This is an indication of the fact that people
preferring smaller SKUs usually purchase more as compared to others. Thus
high association between purchase frequency and SKU (pack sizes ) is
established .
Since p value is greater than alpha i.e. o.05 (95% confidence level), therefore
there is no association between purchase frequency and gender.
Crosstabulation
Count
Reason for channel
Ambien Nearne Servic Reputati Occasi
Pricing ce ss e Display on on Total
chann Retail
4 8 23 0 13 0 6 54
el store
Supermar
4 6 6 0 6 1 0 23
ket
Cineplex 1 0 0 0 2 2 0 5
Restauran
1 3 1 1 3 0 0 9
ts
Travel 1 2 1 0 1 0 0 5
Pan shops 0 2 0 0 0 0 0 2
Others 1 0 0 0 0 0 1 2
Total 12 21 31 1 25 3 7 100
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 68.211 a
36 .001
Likelihood Ratio 50.165 36 .059
Linear-by-Linear
1.108 1 .293
Association
N of Valid Cases 100
a. 43 cells (87.8%) have expected count less than
5. The minimum expected count is .02.
Here p value is less than alpha i.e. 0.05 (95% confidence level) therefore Ho
is rejected. This shows that there is high association between choice of channel
and factors affecting the choice of channel. This gives an indication such that
those people who consider availability and nearness as their factor affecting the
choice of channel might prefer buying fruit drink from retail stores or grocery
stores. Thus a high association is established.
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 20.262 a
12 .062
Likelihood Ratio 26.177 12 .010
Linear-by-Linear
4.223 1 .040
Association
N of Valid Cases 100
a. 12 cells (60.0%) have expected count less than
5. The minimum expected count is .32.
Since p value is less than alpha (95%) therefore there is high association
between purchase frequency and basic thirst /filling purpose. This might be an
indication of the fact that people drinking fruit drinks for basic thirst / filling
purpose generally buy more as compared to others.
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.
• The crosstab between purchase frequency and SKU showed that those
purchasing smaller SKU’s purchase more frequently as compared to those
who purchased a 500ml or 1litre. On the other hand there is no impact of
gender on purchasing frequency for fruit drinks.
• 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.