You are on page 1of 55

A STUDY ON THE CONSUMER

PREFERENCE (or BUYING


BEHAVIOUR) FOR BOTTLED WATER

Submitted to
Dr Sonia Singh

INTRODUCTION
Conducted a survey to understand buying behavior (consumer

preference) for bottled water, which are consumed across age


groups
The survey was primarily conducted in: Delhi - NCR
The sample was surveyed on variables such as: price,

health/cleanliness,
nutritional
composition,
availability,
advertisement, product satisfaction, taste, packaging, brand
loyalty etc.
Concluded with trends of ongoing changes in their preferences

for bottled water

OBJECTIVES

To understand the rising importance of bottled water in the present day

scenario
To study the bottled water consumption pattern
To analyse the factors that contributes to consumption of bottled water
To evaluate the consumer satisfaction level associated with the market

offerings
To summarize findings which could further influence consumer

buying decision or preference for bottled water

RESEARCH METHODOLOGY
Sample Size and Design:
The sample size consisted of 300 respondents from Delhi
and NCR
Research Period:
Research work was carried for a period of 4 weeks
Research Instrument:
The research was carried out through self-administered
questionnaires. The questions included both open and
close ended, dichotomous and offered multiple choices

RESEARCH METHODOLOGY
Data Collection:
The data which is collected for the purpose of study, is
divided into:
Primary Source: Survey of a study on understanding
consumer behavior towards bottled water. The data has
been collected directly and indirectly from respondents
with the help of structured questionnaires
Secondary Source: The secondary data was collected
from academic journals and industry reports

Research Type:
The research primarily is descriptive and inferential
It involves description of the characteristics of the

variable, the extent of association between variables


under study and it allows the researcher to infer about
the variable

Survey Design
The study is a cross sectional study because the

data were collected at a single point of time. For


the purpose of present study a related sample of
population was selected on the basis of
convenience

DATA ANALYSIS
Analysis of attributes of the product with

regard to purchase influence (using Liker


scale)
Calculation
of
frequencies
and
crosstabulation formed a part of descriptive study
Chi square test for finding the goodness of fit

LIMITATIONS OF THE STUDY


Due to limitation of time, the sample size

under study is small (300)


The main source of data for the study
primary data with the help of
administered questionnaires. Hence,
chances of unbiased information are less
The data collection was limited to Delhi

was
selfthe
NCR

Tap water is still a more preferred


source of obtaining drinking water
over bottled water. Bottled water
is preferred more when they move
out of their homes .

Cumulati
Freque
ncy
Valid

Bottled
Water
Tap
Water
Total

Valid
Percent Percent

ve
Percent

133

44.3

44.3

44.3

167

55.7

55.7

100.0

300

100.0

100.0

Flavored
bottled
water has not been
consumed
to
a
large extent by the
sample
under
study; however our
research indicates it
as
a
influential
factor which could
enhance
buying
behavior of bottled
water.
Freque
ncy
Valid

yes

Percent

Valid
Percent

Cumulati
ve
Percent

66

22.0

22.0

22.0

224

74.7

74.7

96.7

Can't
say

10

3.3

3.3

100.0

Total

300

100.0

100.0

no

Frequen
cy
Percent
Valid Daily

Valid
Percent

Cumulativ
e Percent

70

23.3

23.3

23.3

Twice a
week

91

30.3

30.3

53.7

Once a
week

52

17.3

17.3

71.0

Rarely

87

29.0

29.0

100.0

300

100.0

100.0

Total

The maximum consumption of


bottled water is twice a week.
Though it is indicated by our
study that tap water is slightly
preferred over bottled water
for
daily
household
consumption, however bottled
water is the preferred source
when outdoors. Thereby, it can
be inferred bottled water
being purchased twice a week
with highest frequency.

1 liter is the maximum size of


bottled water which is normally
preferred by the sample. This is
useful with regards to volume of
water and packaging of bottled
water.

Frequen
cy
Valid

Percent

Valid

Cumulativ

Percent

e Percent

500ml

31

10.3

10.3

10.3

1 litre

182

60.7

60.7

71.0

2 litre

28

9.3

9.3

80.3

5 litre

1.7

1.7

82.0

54

18.0

18.0

100.0

300

100.0

100.0

20 litre
Total

Bottled water is a preferred


source of drinking than tap
water
primarily
due
to
convenience,
when
the
sample
under
study
is
outdoors.

Frequen
cy
Valid yes

Percent

Valid
Percent

Cumulativ
e Percent

79

26.3

26.3

26.3

no

221

73.7

73.7

100.0

Total

300

100.0

100.0

Price is not a very critical


factor for the sample in
influencing the decision of
bottled water. It can be
inferred that the sample
under study is not price
sensitive, also because the
maximum income group of
the sample is Rs. 50000 and
above per month.

Frequen
cy
Valid yes

Percent

Valid
Percent

Cumulativ
e Percent

29

9.7

9.7

9.7

no

271

90.3

90.3

100.0

Total

300

100.0

100.0

There is a clear preference for


bottled water due to safety and
cleanliness reasons amongst the
sample under study. It can be
inferred that enhancing nutrition
and chemical composition of
bottled water is vital.

Frequen
cy
Valid yes

Percent

Valid
Percent

Cumulative
Percent

174

58.0

58.0

58.0

no

126

42.0

42.0

100.0

Total

300

100.0

100.0

There is a clear preference for


bottled water due to safety
and
cleanliness
reasons
amongst the sample under
study. It can be inferred that
enhancing
nutrition
and
chemical
composition
of
bottled water is vital.

Frequen
cy
Valid yes

Percent

Valid
Percent

Cumulative
Percent

186

62.0

62.0

62.0

no

114

38.0

38.0

100.0

Total

300

100.0

100.0

The majority sample is neutral


towards the attribute taste , while
purchasing bottled water however it
is closely followed being the most
important. Hence, taste can also be
used as an influencing factor in
encouraging preference for bottled
water.
Frequen
cy
Valid

least
important
hardly
important
neutral
often
important
most
important
Total

Percent

Valid

Cumulative

Percent

Percent

59

19.7

19.7

19.7

42

14.0

14.0

33.7

77

25.7

25.7

59.3

58

19.3

19.3

78.7

64

21.3

21.3

100.0

300

100.0

100.0

Frequen
cy
Valid

least
important
hardly
important
neutral
often
important
most
important
Total

Percent

Valid

Cumulative

Percent

Percent

26

8.7

8.7

8.7

12

4.0

4.0

12.7

26

8.7

8.7

21.3

61

20.3

20.3

41.7

175

58.3

58.3

100.0

300

100.0

100.0

Majority of the sample


consider water quality
as an extremely
important
attribute
while
purchasing
bottled water. This
highlights
chemical
and
nutrient
composition plays an
important role, which
is in relation to that
the sample prefers to
buy bottled water due
to
safety
and
cleanliness.

The sample considers chemical


composition
also
as
an
important
attribute
while
purchasing bottled water. This
highlights
chemical
and
nutrient composition plays an
important role, which is in
relation to that the sample
prefers to buy bottled water
due to safety and cleanliness.
Frequen
cy
Valid

least
important
hardly
important
neutral
often
important
most
important
Total

Percent

Valid

Cumulativ

Percent

e Percent

62

20.7

20.7

20.7

47

15.7

15.7

36.3

72

24.0

24.0

60.3

70

23.3

23.3

83.7

49

16.3

16.3

100.0

300

100.0

100.0

The sample is neutral


towards
price
while
purchasing bottled water,
which reflects the current
offerings in the market are
competitively priced. The
sample is not very price
sensitive.
Frequen
cy
Valid

least
important
hardly
important
neutral
often
important
most
important
Total

Percent

Valid

Cumulativ

Percent

e Percent

43

14.3

14.3

14.3

38

12.7

12.7

27.0

100

33.3

33.3

60.3

54

18.0

18.0

78.3

65

21.7

21.7

100.0

300

100.0

100.0

Frequen
cy
Valid

least
important
hardly
important
neutral
often
important
most
important
Total

Percent

Valid

Cumulativ

Percent

e Percent

34

11.3

11.3

11.3

23

7.7

7.7

19.0

56

18.7

18.7

37.7

93

31.0

31.0

68.7

94

31.3

31.3

100.0

300

100.0

100.0

The
sample
considers brand as
an
extremely
important attribute
while
purchasing
bottled water. It can
also be inferred that
the sample is able to
associate brand with
trust with regards to
bottled water.

Frequen
cy
Valid

least
important
hardly
important
neutral
often
important
most
important
Total

Percent

Valid

Cumulativ

Percent

e Percent

60

20.0

20.0

20.0

43

14.3

14.3

34.3

99

33.0

33.0

67.3

62

20.7

20.7

88.0

36

12.0

12.0

100.0

300

100.0

100.0

The sample is neutral


towards
packaging
as an attribute while
purchasing
bottled
water. This could be
useful for companies
in
designing
/packaging of the
product, and avoid
wasteful expenditure.

Frequen
cy
Valid

least
important
hardly
important
neutral
often
important
most
important
Total

Percent

Majority of sample has rated


availability as the most important
attribute while purchasing bottled
water. This is useful with regards to
distribution strategies which can be
adopted
by
companies
manufacturing bottled water.

Valid

Cumulativ

Percent

e Percent

32

10.7

10.7

10.7

27

9.0

9.0

19.7

63

21.0

21.0

40.7

97

32.3

32.3

73.0

81

27.0

27.0

100.0

300

100.0

100.0

Frequen
cy
Valid

least
important
hardly
important
neutral
often
important
most
important
Total

Percent

Valid

Cumulativ

Percent

e Percent

80

26.7

26.7

26.7

50

16.7

16.7

43.3

95

31.7

31.7

75.0

34

11.3

11.3

86.3

41

13.7

13.7

100.0

300

100.0

100.0

The sample is neutral


towards seasonality as
an
attribute
while
purchasing
bottled
water.
Therefore,
bottled
water
is
preferred
across
seasons (and not just
primarily
during
summers).

AT TRIBUTES
Descriptive Statistics
N

Minimu Maximu
m
m

Mean

Std.
Deviation

taste
300

3.09

1.404

300

4.16

1.261

300

2.99

1.370

300

3.20

1.309

300

3.63

1.303

300

2.90

1.275

300

3.56

1.270

300

2.69

1.342

water quality
chemical
composition
price
brand
packaging
availability
seasonality
Valid N (listwise)

300

Bottled water is maximum


bought by the sample from
mom n pop shops (such as
paan or grocery, in and out
stores)
followed
by
restaurants, as reflected
bottled water primarily
being
preferred
when
outdoors.
Cumulati
Freque
Valid
ve
ncy
Percent Percent Percent
Valid

malls

48

16.0

16.0

16.0

medical
shops

43

14.3

14.3

30.3

restaurant
s

68

22.7

22.7

53.0

movie
theatres

29

9.7

9.7

62.7

112

37.3

37.3

100.0

mom n pop
shops

The sample is satisfied with


bottled
water
offerings
currently available in the
market. It can be inferred
that new product launches
may be affected with existing
satisfaction.

Frequen
cy
Valid sa

Percent

Valid

Cumulativ

Percent

e Percent

46

15.3

15.3

15.3

146

48.7

48.7

64.0

77

25.7

25.7

89.7

28

9.3

9.3

99.0

1.0

1.0

100.0

300

100.0

100.0

sd
Total

The study indicates that the


sample find bottled water
products currently available
in the market as reasonable,
hence again indicating that
the sample is not very price
sensitive.

Frequen
cy
Valid ve

Percent

Valid

Cumulativ

Percent

e Percent

3.0

3.0

3.0

93

31.0

31.0

34.0

155

51.7

51.7

85.7

40

13.3

13.3

99.0

1.0

1.0

100.0

300

100.0

100.0

va
Total

The sample is brand


loyal, indicating they are
brand conscious and
usually
prefer
their
choice of brand when it
comes to bottled water.
This indicates it could be
difficult for companies to
shift consumers from
competitors.

Frequen
cy
Valid

Percent

Valid

Cumulativ

Percent

e Percent

always

51

17.0

17.0

17.0

usually

154

51.3

51.3

68.3

71

23.7

23.7

92.0

18

6.0

6.0

98.0

2.0

2.0

100.0

300

100.0

100.0

sometim
es
may be
never
Total

The sample considers


prices of current bottled
water
offerings
as
reasonable and are not
price

sensitive.
Therefore,
a
lower
priced bottled water will
not
influence
their
purchasing
decision,
again reflecting them to
be brand loyal.
Frequenc
y
Valid yes
no
Total

Percent

Valid

Cumulative

Percent

Percent

137

45.7

45.7

45.7

163

54.3

54.3

100.0

300

100.0

100.0

Bisleri is still the most


preferred bottled water of
sample, which was was
one of the first companies
to foray into the market of
bottled water. Aquafina
and
Kinley
are
also
preferred.

Freque
ncy
Valid

Percent

Valid

Cumulativ

Percent

e Percent

Aquafina

63

21.0

21.0

21.0

Bisleri

90

30.0

30.0

51.0

Kinley

64

21.3

21.3

72.3

40

13.3

13.3

85.7

43

14.3

14.3

100.0

300

100.0

100.0

Mount
Kailash
Bailey
Total

Health conditions or disease


does not have any
influence sample to drink
bottled water.

Frequen
cy
Valid yes

Percent

Valid
Percent

Cumulativ
e Percent

59

19.7

19.7

19.7

no

241

80.3

80.3

100.0

Total

300

100.0

100.0

The sample has chosen


color as an important factor
which will influence their
buying decision of bottled
water. This can be useful for
companies
wanting
to
launch or innovate existing
offerings.
Frequen
cy
Valid

least
influence
hardly
influence
neutral
often
influence
most
influence
Total

Percent

Valid

Cumulativ

Percent

e Percent

64

21.3

21.3

21.3

39

13.0

13.0

34.3

51

17.0

17.0

51.3

57

19.0

19.0

70.3

89

29.7

29.7

100.0

300

100.0

100.0

The
sample
considers
fragrance as neutral and
least
important
factor
which could influence their
buying decision.

Frequen
cy
Valid

least
influence
hardly
influence
neutral
often
influence
most
influence
Total

Percent

Valid

Cumulativ

Percent

e Percent

69

23.0

23.0

23.0

45

15.0

15.0

38.0

71

23.7

23.7

61.7

69

23.0

23.0

84.7

46

15.3

15.3

100.0

300

100.0

100.0

Cumulati
Freque
ncy
Valid

least
influence
hardly
influence
neutral
often
influence
most
influence

Valid
Percent Percent

ve
Percent

48

16.0

16.0

16.0

30

10.0

10.0

26.0

51

17.0

17.0

43.0

62

20.7

20.7

63.7

109

36.3

36.3

100.0

The
sample
considers
flavor as most important
factor
which
could
influence
their
buying
decision. This reflects the
sample
would
be
interested
in
flavored
bottled water if introduced
in the market.

NEW ATTRIBUTES IF
INCLUDED
Descriptive Statistics
N

Minimu Maximu Mea


m
m
n

Std.
Deviation

if included which
factors will
influence your
buying decisioncolor

300

5 3.23

1.522

if included which
factors will
influence your
buying decisionfragrance

300

5 2.93

1.384

if included which
factors will
influence your
buying decisionflavor

300

5 3.42

1.531

Valid N
(listwise)

300

The total sample size is 300,


which comprised of 190 males
and 110 females

Frequen
cy
Valid

Percent

Valid

Cumulative

Percent

Percent

male

190

63.3

63.3

63.3

female

110

36.7

36.7

100.0

300

100.0

100.0

Total

The age group of sample


mostly is 40 and above and
25 years

Frequen
cy
Valid

Percent

Valid

Cumulativ

Percent

e Percent

10-25

113

37.7

37.7

37.7

26-30

42

14.0

14.0

51.7

31-45

75

25.0

25.0

76.7

70

23.3

23.3

100.0

300

100.0

100.0

45 and
above
Total

Descriptive
Statistics
Cross tabulation

Preference vs. Age group vs. Gend

age group
45 and
gender
male

10-25
where do u obtain

Bottled

most of your drinking

Water

water ?

Tap Water

Total
female

where do u obtain

Bottled

most of your drinking

Water

water ?

26-30

31-45

above

Total

32

14

14

65

43

19

34

29

125

75

33

39

43

190

23

26

64

Size vs. Place of purchas


Asymp. Significance
level: .000
1
litre
of
bottled water is
purchased
maximum from
mom n pop
shops.

where do you buy most of bottled from


medical
malls
what size of bottled

shops

restaurants

movie

mom n pop

theatres

shops

Total

500ml

12

31

water do you normally 1 litre


purchase
2 litre

31

18

50

17

66

182

11

28

5 litre

20 litre

17

29

54

48

43

68

29

112

300

Total

Buying frequency vs. Place of purcha


Asymp. Significance level:
0.021
Bottled
water
is
purchased
twice
a
week from mom n pop
shops by the sample
as maximum.

Count
where do you buy most of bottled from
medical
malls
How often do you

Daily

purchase bottled

Twice a

water

week
Once a

shops

restaurants

movie

mom n pop

theatres

shops

Total

15

14

28

70

13

23

15

33

91

13

23

52

Brand vs. Age Group


Asymp. Significance level: .409

Bisleri and Aquafina are most


preferred bottled water from
mom n pop shops in the age
group of 20 and 40

Count
age group
45 and
10-25
Which brand of

Aquafina

bottled water do you Bisleri


buy the most
Kinley
Mount
Kailash

26-30

31-45

above

Total

23

11

16

13

63

43

18

23

90

21

10

18

15

64

11

12

40

Flavor
Asymp. Significance level: 0.140
Consumers consider flavor(if
included) as an important
attribute that might affect their
buying behavior and they
probably want companies to
add bottled water with new
flavors to their product line

Count
if included wich factors will influence your buying
decision-flavor
least

hardly

influence

influence

neutral

often

most

influence

influence

Total

do you drink

yes

11

12

34

66

flavoured water ?

no

35

26

43

49

71

224

10

48

30

51

62

109

300

Can't say
Total

Profession and Preferenc


Asymp. Significance level: 0.006

Count
where do u obtain most of your drinking
water ?
Bottled Water
profession

Tap Water

Total

self employed

29

43

72

student

52

44

96

teacher

10

13

23

doctor

14

19

lawyer

20

33

53

22

26

businessman
govt employee

Descriptive
Statistics
Hypothesis Testing
Independent Sample-T Testing

Brand vs. Price


Hypothesis :
Ho: Consumers who consider branding as an
important attribute do not consider price as an
important attribute while purchasing bottled
water
H1: Consumers who consider branding as an
important attribute consider price as an
important attribute while purchasing bottled
water

T -statistic value: .554


Significance level: 0.580
P-value= 0.580
Since,
p-value(0.580) > 0.05
Therefore,
Thenull
hypothesisis
accepted and a conclusion is
made people who consider
brand as an important attribute
do not consider price as an
important
attribute
while
purchasing bottled water.

Levene's Test for


Equality of
Variances

t-test for Equality of Means


95% Confidence
Mean

Std.

Interval of the

Error

Difference

Sig. (2- Differenc Differenc


F

Sig.

df

tailed)

Lower

Upper

attributes you Equal


consider while variances
purchasing
bottled water-

assumed

1.410

.236

.554

298

.580

.084

.151

-.214

.381

Medical Condition vs. Safety


Hypothesis :
Ho: A consumer suffering from a condition that
forces him to drink more water than usual does
not consider safety as an important attribute
while purchasing bottled water.
H1: A consumer suffering from a condition that
forces him to drink more water than usual
considers safety as an important attribute while
purchasing bottled water.
Alpha: 0.05

T -statistic value: -3.859


Significance level: 0.000
P-value= 0.000
Since,
p-value(0.000) < 0.05
Therefore,
Thenull hypothesisis rejected
and
alternate
hypothesis
is
accepted and a conclusion is made
that Consumer who are suffering from
any medical condition prefer bottled
water over tap water(RO water)
because of safety
Levene's Test for
Equality of
Variances

t-test for Equality of Means


95% Confidence
Mean

Std.

Interval of the

Error

Difference

Sig. (2- Differenc Differenc


F
Bottled water

Equal variances

products

assumed

available in the Equal variances

2.305

Sig.

.130 -3.859

df
298

tailed)
.000

e
-.327

e
.085

Lower
-.493

Upper
-.160

Consumption Pattern vs. affordability


Hypothesis :
Ho: People who oftenly purchase bottled water
for consumption do not consider affordability as
an important attribute
H1: People who oftenly purchase bottled water
for consumption
consider affordability as an
important attribute
Alpha: 0.05

T -statistic value: -1.559


Significance level: 0.120
P-value= 0.120
Since,
p-value(0.120) > 0.05
Therefore,
Thenull hypothesisis accepted
and a conclusion is made that people
who oftenly purchase bottled water
for consumption do not consider
affordability as an important attribute
It can be inferred that our sample is
probably price insensitive
Levene's Test for
Equality of
Variances

t-test for Equality of Means


95% Confidence
Mean

Std.

Interval of the

Error

Difference

Sig. (2- Differenc Differenc


F
How often do

Equal variances

you purchase

assumed

bottled water

Equal variances

.108

Sig.

.743 -1.559

df
298

tailed)
.120

e
-.347

e
.222

Lower
-.784

Upper
.091

CONCLUSION
Tap water preferred by sample but when outdoors, bottled

water consumed maximum in the age group of 20-40


1 Liter of bottled water is purchased maximum from mom n pop
shops, grocery and in & out stores, medical shops etc.
Implications on distribution strategies of companies
There is brand loyalty amongst consumers for preference of
bottled water
Bisleri and Aquafina most preferred. Current market offerings
are reasonably priced
Consumers are not price sensitive
Sample prefers bottled water due to convenience, safety and
cleanliness reasons
Flavor in bottled water could be included by companies in their
new product launches to influence buying behavior

THANK
YOU !!

You might also like