PROJECT TITLE

CONSUMER BEHAVIOR ON SOFT DRINKS

AT

HINDUSTANCOCA COLA BEVARAGES PVT LTD

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CONTENTS

Page no

CHAPTER-I 03

INTRODUCTION

Need for the study

Objectives of the study

Research methodology

Scope of the study

Limitations of the study

CHAPTER-II 11

COMPANY PROFILE

CHAPTER-III 22

THEORETICAL BACKGROUND ABOUT THE TOPIC

CHAPTER-IV 42

DATA ANALYSIS

CHAPTER-V 53

FINDINGS

CONCLUSIONS

SUGGESTIONS

QUESTIONNARE

BIBLIOGRAPHY

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CHAPTER-I

INTRODUCTION

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INTRODUCTION

Need for the study

With the economic liberalization in India a number of global companies

have been coming forward to invest in India and tapping perhaps and world's

biggest growing market. As the floodgates have been opened up for Multinational

Companies, the global giant Coca-cola also decided to make an entry into the

Indian market. In India, the per capita consumption of soft drinks is at rock bottom

level even less than our neighboring countries Pakistan and Bangladesh, where it

is four times as much.

The last summer was particularly sweltering one, with temperatures hitting the

high 40's in some places yet; bottles were disappearing from shelves faster than

they could be replaced. In the peak season, they found themselves short of

capacity and having to turn around their trucks faster and faster to slake the

greater Indian thirst.

With growth rates zooming into the double digits, bottlers have been propelled

into expanding capacities. With their big-time plans, the multinationals have

changed the face of this business, long dominated by small-time businessmen. If

demand continues to increase annually at an average of 20 percent, then volumes

could reach one billion cases within ten years.

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These arc ambitious targets and to reach them the cola makers will have to build

capacity, infrastructure, make their bottlers more available and more affordable.

There are 5. 00,000 retailers stocking soft drinks in India. Also, soft drinks which

retail at any where between Rs.9.00 and Rs.12.00 are expensive when measured

against purchasing power.

As they concoct their strategies, keeping an eye on each other all the time,

ultimately there's only one guy they have to watch out for, who will determine

their fortunes: the consumer. The real race to quench his thirst has just begun

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Objectives of the study

• To study about the consumer preference with regard to soft drink

• To study about the consumer perception with regard Coca — Cola

• To understand the Promotional Strategies

• To find out the medium which is most effective in reaching the

consumers?

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Research methodology

Data will be collected from a sample size 1000 and distributed over

different areas by using simple Random Sampling. Random Sampling

consists of

1. Demographic Segmentation

2. Sociocultural Segmentation

3. Use-Related Segmentation

4. Use-Situation Segmentation

Analysis

1. Data Analysis is done both qualitatively and quantitatively.

2. The analysis is presented pictographically using bar graphs

PERIOD OF THE STUDY: The period of the study is past one year

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Scope of the study

The new economic policies of the Govt. of India adopted in the mid eighties were

given further impetus by the early nineties. The Indian market has undergone

considerable changed as a direct consequence of many of these policies and soft

drink industry is no exception to this.

Keeping the above - mentioned perspective in the background, the researcher has

selected soft drink market, since the marketing task his became more challenging

and intensive competition has opened up new vistas.

Companies are evolving marketing strategies by studying the demands of the

market place increasingly penetrating into appropriate market segments

introducing differentiated products to improve their market share. The soft drink

market has achieved an accelerated growth in the past decade.

Soft drinks include ail types of non - alcohol carbonated flavored or otherwise

sweetened beverages. The entry of Pepsi and the reentry of Coca - Cola in the

India market arc inevitably facing stiff competition but the ultimate winner is

customer/consumer. This has led the researcher to study me perception of

consumers towards different brands of soft drinks and to gauge out the

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promotional strategic being adopted by the marketers to lure promiscuous buyers

and win a larger share in the markets.

The cola wars are intensifying and bringing manifold changes in the soft drink

industry. The researcher has conducted a detailed survey, interpreting the

responses to study the perception of the consumers. Now the people with changing

life styles and increase in income levels have made the soft drink a common man

drink.

Liven through the existing system of marketing of soft drink has not tapped such a

big market in the interiors of the country specially the rural areas, as marketing in

the suburban and rural areas is developing slowly.

Despite the soft drink industry is growing at a very healthy pace and stands at 18%

per annum. The market for cool drinks comprises of adults in the 35 years age

group who are largest consumers of the soft drink in the country followed by

young adults in the age group of 15-25 years and children in the age group of 6-

14 years hence, companies must develop their product and marketing slraleiues to

suit their needs.

Limitations of the study

1. The study is conducted with in the confines of the twin cities

2. The study made use of both the primary and secondary sources of information.

The accuracy and authenticity of statistics depends of the accuracy of the second

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source itself. Therefore, the limitation of the secondary source is also bound to be

present in the analysis too.

3. In spite of all the care taken to translate the feelings and opinions of the

respondents, the errors might creep into the study, may be because of the reason

that consumers may fail to articulate their feelings properly.

4. Due to lack of time and finances, the sample size is confined to hundred only. The

method adopted for sampling is convenient. Therefore, size and method

implications are bound to be present in the findings. Hence, the findings cannot be

taken for granted for generalization for the whole population.

Study is confined to consumers belonging to age group between 20 --- 25 years

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CHAPTER-II

COMPANY PROFILE

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COMPANY PROFILE

2.1 INDUSTRY PROFILE

Soft drinks are typical and necessary consumer products, which are generally

consumed by the individuals to quench the thirst and for a good flavour, and it is

considered to be the symbol of social status.

The two main reasons, which classify the soft drinks under consumer products, are

their easy availability and their reasonable high degree standardization. Among the

listed consumer goods (i.e., perishable items) soft drinks is considered non-

essential and as a luxury item.

Soft drinks can be classified into two broad categories- carbonated drinks and non-

carbonated drinks. Both have enormous market. In case of carbonated beverages

the effectiveness of carbon-dioxide is the main factor in determining the quality.

Cola, leman and orange are carbonated drinks while mango drinks come under

non-carbonated category.

A prolonged visible and sparking effervescence is sought after to produce soda

taste in such drinks. The basic constituents of soft drinks are water, sweeteners,

acidulates, flavorings, colorings, foaming agents and preservatives. The soft drink

market is dominated by a few brands. Coca Cola and Pepsi products for example.

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Soft drink industry in India has witnessed phenomenal growth in the recent past,

particularly after the exit of Coca-Cola. The exit of Coca-Cola from India during

the late seventies gave a bolter scope to several Indian soft drink companies to

grow. These were a rapid growth in this industry but each one aggressively

competed with one another to capture a major share in the market. The

competition was very high even in terms of advertising.

The perishable items like soft drinks need a lot of advertisement, as they are not

necessary for the consumer. Most of the consumer consume just for fun &

refreshment purpose and not and for nay other special reason.

For that reason the soft drink marketers concentrate more on the advertisement

part and they keep on designing new advertisements, which conquer the heart of

the consumer. They take special care in casting the popular figures. These soft

drink markets also include some offers like tours to someplace

and so on.

These soft drink companies will sponsor for many of the sport events in order to

have good edge over the competitor as per as the publicity is considered.

SOFT DRINK 1NDUSTR Y IN INDIA

The entry of carbonated soil drink into the Indian soil is relatively new. The credit

for introducing branded soil drink goes to pure drinks private Ltd, Delhi. Later this

company became the franchised bottler of Coca - Cola export corporation.

Accordingly, in 1950, Coca - Cola made its first debut in the Indian market. This

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is the story about the origin of soft drinks in India. After Coca — Cola, Pepsi

entered into the market. The exit of Pepsi made coke the undisputed leader in the

soft drinks market. This company too was forced to leave India due to its non

compliance with the rules and regulations of the Government in 1977. The exit of

coke becomes a boom to national manufactures and all the players started

increasing their business. Among the many national players like pure drinks Me

Dowels, Modem foods, Spencer's and parley, Parle emerged as the leader in the

Indian soft drink market. It is believed that by the end of 1989. Parle captured

more than 75% of the national soft drink market.

In 1990. Pepsi rccntcrcd India and started making more noise in the market. All

the same, it grabbed considerable market share from parley. Besides this. Coke

also reentered India after 16 years of exile, fearing that, it cannot cling to its

market leadership. Parle sold itself to Coca Cola for $40 Million November,

1993.

By buying over local competition the two American Cola giant share cleared up

the arena and are packing all their power behind building the Indian franchise of

their global girdling brands. If Pepsi invests Rs. 300 core, Coke will be investing

more than that and vice versa. The total investment is of a size and scale that the

Rs. 3048 cork soft drink businesses have never seen before.

Both players see enormous potential in this country. Where swigging a carbonated

beverage is still considered a treat virtually a luxury. Consequently by world

standards India's per capita consumption of three servings is rock bottom less even

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than over neighbors Pakistan and Bangladesh. Where is four times as much so, the

cola giants feel that per caps can only go up and up. As incomes improve so do life

styles a pattern they have seen in many of the 195 countries they sell their

universal products.

HISTORY OF COCA - COLA

ATLANTA BEGINNINGS (1868 - 1892):

It was 1886 in NEW YORK harbor, workers are constructing the statue of the

liberty. 800 miles away another great symbol was about to be unveiled.

Like many people who change the history, JOHAN PEMBHRTON, a civil war

veteran & Atlanta pharmacist, was inspired by simple curiosity. He loved

tinkering with medicinal formulas, and one afternoon, searching for a quick cure

for head aches, his stipend up a fragrant Carmel colored liquid in a three legged

pot. When it was done, he carried it a few doors down to Jacob's pharmacy.

I Icrc. the mixture was combined with carbonated water and sampled by customers

who all agreed this new drink was something special. So Jacob's pharmacy put it

on sale for five cents a glass. PEMBERTON'S book keeper FRANK ROBINSON

named the mixture COCA - COLA and wrote it out in his distinct script. To this

day, COCA - COLA is written in the, same way.

In this first year the company sold about 9 glasses of coca cola a day. A century

later the coca-cola company has produced over ten billion gallons of syrup.

Unfortunately for Pemberton, he was more of an inventor than a businessman and

had no idea that the had invented one of the greatest products of the world. Over

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the course of 3 years 1881 - 1891. Pemberton sold the company to Atlanta

businessman Asa Griggs Candlcr for the total of about $ 2300. Candlcr would

become the company's first president and the first to bring real vision to the

business and the brand.

BEYOND A TLANTA (1893 - 1904) :

As a Candler, a natural born salesman transformed Coca Cola from invention to

a business. Lie knew there were thirsty people out there and Candler found

brilliant and innovative ways to introduce them to this exciting new refreshment.

He gave away coupons for complimentary first tastes of Coca — Cola brand.

People saw ('oca - Cola every where and the aggressive promotion worked. By

1895, Candler had built syrup plants in Chicago, Dallas and Los Angeles.

Inevitably, the soda's popularity led to a demand for it to be enjoyed in new ways.

In 1894. a Mississippi businessman named Joseph Bernhard became the first to

put the drink in bottles. He sent of them to Candler, who responded without

enthusiasm. Despite being a brilliant and innovative businessman, he didn't realize

then that the heart of Coca- Cola would be with portable, bottled beverage

customers could take anywhere. He still didn't realize it five years later when in

1899, two Chattanooga lawyers, Benjamin. Thomas and Joseph b. Whitehead

secured exclusive rights from him to bottle and sell the beverage lor the sum of

one dollar.

SAFEGAURD1NG THEBKANOfl905-1918) :

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Imitation may be the sincerest of flattery, but the Coca - Cola Company

was none too pleased about the proliferation of copycat beverages taking the

advantage of its success. This was great brand. Both needed to be protected.

Advertising focused on the authenticity of Coca - Cola, urging can summers to

"demand the genuine'' and "accept no substitute". The company also created a

distinct bottle shape to assure people they were actually getting a real Coca -Cola.

In 1916, the Root glass company of Treat, Indiana began manufacturing the

famous contour bottle. The counter bottle for its attractive appearance, original

design and the fact that, even in the drink, you could identify the genuine article.

As the country roared into the new century, the Coca Cola Company grew

rapidly moving into Cuba. Puerto Rico, France and other countries. In 1900 there

were two bottles of Coca Cola, by 1920, there would be about 1000.

THE WOODRUFF LEGACY:

Perhaps no person has more impact on the Coca - Cola company the Robert

Woodruff In 1923, five years after his father Ernest purchased the company from

Asa Candler, Woodruff become the company president. While Candler had

introduced the U.S. Coca - Cola, he would nearly spend 60 years as company

leader introducing the beverage to the world beyond.

Woodruff was marketing genius who saw opportunities for expansion every where

the captivated foreign markets with his innovative campaigns. Coca Cola traveled

with the U.S. team to the 1928 Amsterdam Olympics to the logo was emblazed on

racing dog sleds in Canada & the walls of bull fighting arenas in Spain. He pushed

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development & distribution of the six-pack, the open top cooler and all

innovations that made it easier for people to drink Coca Cola. When it became

clear to the company that housewives would be more inclined top buy six-packs

they could open easily at home, women were sent door to door, installing branded

Coca Cola openers, this is exactly the kind of "out side the box'" thinking that

thrived under Woodruffs leadership and it made Coca Cola not just a huge

success, but a big party of people's lives.

THE WAR & ITS LEGACY:

In 1941 America entered into World War II thousands of men & women were sent

overseas. The country & Coca - Cola rallied behind them. Woodruff ordered that

every man in uniform gets a bottle of Coca - Cola for 5 cents, wherever he is,

whatever it cost the company 1943, General Dwight D.Eisenhower sent urgent

cablegram to Coca - Cola requesting shipment of materials for 10 bottling plant.

During the war many Europeans enjoyed their first taste of beverage and when

peace finally came, Coca - Cola be placed within ''arm's reach desire'", was

coming true from the rnidf-40's until 1960, the number of countries with bottling

operations nearly doubled.

Post war America alive with optimism & prosperity. Coca - Cola was a part of

fun, carefree America lifestyle & the imagery of its advantage happy couples at

the drive in, carefree moms driving are yellow convertibles is a wonderful

reflection of the spirit of the limes.

A WORLD Or CUSTOMERS (1960- 1981):

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After 75 years of amazing success with brand Coca - Cola, the company

decided to expand with new flavors sprite in 1961, TAB in 1963 and Fresco in

1966. The company's presence worldwide was growing rapidly year after year,

Coca Cola found a home in more & more places. Cambodia, Montserrat, Puce,

Turkey &. more advertising for Coca - Cola always an important & exciting part

of its business really came into its own in the 70's and reflects a brand totally in

tune with fun, playfulness and freedom. The international appeal of Coca- Cola

was embodied buy 1971 commercial, where a group of young people from all over

the world gathered on a hill top in Italy to sing "I'd like to buy the world a coke".

In 1978, the ('oca Cola Company was selected as the only company allowed

selling packaged cold drinks in the peoples Republic of China.

DIETCOKESA NEWCOKE (1982 - 1989):

The 80's the era of legwarmers, head bands and the fitness craze and a time of

much change and innovation at the Coca - Cola Company. In 1981. Roberto C.

Goizucta became chairman of the board of directors & CEO of the Coca- Cola

Company. He who fled Castro's Cuba in 1961. completely overhauled the

company with a strategy he called "intelligent risk taking" among his bold moves

was organizing the numerous U.S. bottling operations into a new public company,

Coca Cola enterprises, Inc. he also released diet coke, the very first extension of

the Coca Cola trade mark within two years, it had become top low calorie drink

in the world, second in success only to Coca Cola. One of Goi/ueta's other

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incentives in 1985, was the release of new taste for Coca Cola, the first change

in formulation in 99 years. In taste people loved the new formula.

In the real world they had a deep emotional attachment to the original and they had

a deep emotional attachment to the original and they bagged and pleaded to get it

back. Critics called it the biggest marketing blunder ever. But Goizueta, as Warren

Buffet once said, had a knack for turning " lemins into lemonade". The original

formula was return to the market as Coca Cola classic, the product began to

increase its lead over the competition a lead that continues to this day.

COCA - COLA NOW (1990 - NOW) :

In 1886. Coca - Cola brought thrilling refreshment to patrons of a small

Atlanta pharmacy. Now well at 2nt century, the company's goal is to provide that

magic every time, in 200 countries, with each of it's 230+ and ever growing

brands. Coca - Cola has customers from Boston to Bahrain, drinking brands like

Ambassa, Veitabela and freseolita. In the remotest corners of the globe, you can

still find Coca Cola.In February 2000, Doug Daft was named company

chairman. Coca - Cola a huge international company, but Draft's vision is to have

the company operate as a collection of smaller, locally run business. "No one",

Daft points out, "decides to enjoy one of our products globally". T hat's why

Coca-- Cola committed to local markets, to paying attention to what people from

different cultures and backgrounds like to drink and where and how they want to

drink, livery ten seconds. 1.26,00 people choose to reach for one of the Coca

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Cola company brands & it is the company's mission to make the choice exiling &

satisfying every single time.

COCA - COLA IN INDIA MARKET:

Coca - Cola has started its operation in Indian market in October 1993. This

has been its reentry in the India market after withdrawal of its operation in

1970s.The Indian market offers a strong consumer potential as majority of the

population is in middle class category which is a strong consumer base for any

FMCG company like Coca - Cola to float its range of products.

Coca-- Cola has acquired the soft drink brands like Thumps Up, Gold spot, l.imea.

Maa/a, Bisleri soda etc which were floated by parle as these products have

achieved a strong consumer base and formed a brand image in Indian market

during the reentry of Coca Cola in 1993. Thus these products became a part of

range of products of Coca Cola.

MISSION Or COCA - COLA :

Provide "clients" with appropriate "systems solutions" for "effective & profitable"

business use adopting a " quality management approach" maintains a ''competitive

edge" with the help of latest and user friendly information

technology.

VISION OF COCA - COLA :

To be a proactive & service oriented business partner for influencing

change & contributing to increase share owner value through a dedicated &

creative team.

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OBJECTIVE OF COCA ~ COLA :

To develop a business strategy for systems implementation which is "simple,

effective & practiced'" to execute in a timely manner for bottling system.

CHAPTER-III

THEORETICAL BACKGROUND ABOUT THE TOPIC

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THEORETICAL BACKGROUND ABOUT THE TOPIC

Consume r Behaviour, The Marketing Process and Models of Consumer

Decision-making Psychological influences: the consumer as an individual

Perception, motivation, learning, attitudes, attitude change and

persuasive communications

Social and cultural influences: the consumer as a group member.

Group influence and opinion leadership; reference group influence; social class

and economic influences, lifestyles, ethnic, religious, age and regional groups

The consumer as a decision maker

Individual decision-makin

g, demographics and household decision making; personality, self-concept and

sex roles, purchase and post-purchase

"Some issues that arise during stages in the consumption process"

Consumer's perspective

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CONSUMER BEHAVIOUR

"A model in this context is a representation of Consumer Behaviour. The aim

is to provide a simplified portrayal of consumer processes to aid our description,

explanation and control of buying behaviour".

Types of consumer behaviour models: Simple models

• Black Box models

• Personal variable models

• Personal

• Engel, Blackwell and Minored

• Howard-Sheath

• Nicosia

Perhaps the most useful set of categories is that of low, medium or high level

models. In this case the level refers to the level of complexity - so a low level

model would be a relatively simple representation of the phenomenon while a

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high level model of the same event would be much more complex and detailed

and include more variables.

In the marketing context the modeling approach has two key objectives:

1. description, explanation, prediction (and ultimately control of consume

behaviors) and/or

2. Aiding researchers in their task of developing 'better' hypotheses and theories

about the relationships and processes involved in consumer behaviour Models can

be evaluated against their ability to satisfy either or both of these objectives. Study

on Consumer Behaviour

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SIMPLE MODELS OF CONSUMER BEHAVIOUR

Lower level or simple models, in contrast, fall into three broad categories - black

box models, decision process models and personal variable models.

Black Box models - do not consider internal variables. They focus on inputs and

outputs without concerning themselves with the intervening mental processes,

which might determine the outcomes.

Decision process models - attempt a simple description of the stages

consumers' progress through in reaching purchasing decisions. Most are variations

on the classic problem solving/decision making process of: Define problem -

generate alternative solutions - evaluate alternatives - decide - implement -

monitor. These approaches give a sound basis for marketers seeking to devise

strategies that are appropriate for each stage. Inevitably they are not strong on

explanation or prediction without considerable elaboration, which makes them,

falls into the comprehensive model category.

Personal variable models - the personal variable models omit external variables.

So these models focus on the mental processes of decision-making - internal

elements and processes such as perception, motivation, beliefs and values. One

classic example of the personal variable model is the fisheye model, summarized as

A, = B, o,

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Where A0 = the attitude towards object o8, = the strength of belief about o a, =

the evaluation aspects of 6 n = the number of beliefs Study on Consumer

Behaviour

Individual Determinants of Consumer Behaviors

Psychological Factors Influencing The Buying Decision Process

"Psychological factors operating within individuals partly determine people's

general

Behaviour and thus influence their behaviour as consumers.

The primary psychological influences on consumer behaviour are:

• Perceptions

• Motives

• Ability and knowledge

• Attitudes

• Personality

Even though these psychological factors operate internally, it will become

apparent that consumers are also very much affected by social forces outside the

individual"

CONSUMER BEHAVIOUR: LEARNING AND MEMORY

Learning is a change in behaviour that is caused by experience.

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Learning can occur through simple associations between a stimulus and response,

or via a complex series of cognitive activities

Behavioral learning theories assume that learning occurs responses to

Classical conditioning occurs when a stimulus that naturally elicits a response (an

unconditioned stimulus) is paired with another stimulus that does not initially

elicit this response. Over time, the second stimulus (the conditioned stimulus)

comes to elicit the response as well

Study on Consumer Behavior

This response can also extend to other, similar stimuli in a process known as

stimulus generalization. This process is the basis for such marketing

strategies as licensing and family branding, where a consumer's positive

associations with a product are transferred to other contexts,

Operant or instrumental conditioning

Occurs as the person learns to perform behaviour that produce positive

outcomes and avoid those that result in negative outcomes. While classical

conditioning involves the pairing of two stimuli, instrumental learning

occurs when reinforcement is delivered following a response to a stimulus.

Reinforcement is positive if a reward is delivered following a response. It is

negative if a negative outcome is avoided by not performing a response.

Punishment occurs when a response is followed by unpleasant events.

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Extinction of the behaviour will occur if reinforcement is no longer

received.

Cognitive learning occurs as a result of mental processes. For example,

observational learning takes place when the consumer performs behaviour

as a result of seeing someone else performing and being rewarded for it.

Memory refers to the storage of learning information. The way

information is encoded when it is perceived determines how it will be

stored in memory. The memory systems known as sensory memory,

short-term memory, and long-term memory each play a role in retaining

and processing information from the outside world.

Information is not stored in isolation: it is incorporated into knowledge

structures, where it is associated with other related data. The location of

product information in associative networks and the level of abstraction at

which it is coded, help to determine when and how this information will

be activated at a later time. Some factors that influence the likelihood of

retrieval include the level of familiarity with an item, its salience (or

prominence) in memory, and whether the information was presented in

pictorial or written form.

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Products also play a role as memory markers: they are used by consumers

to retrieve memories about past experiences (autobiographical memories) and are

often valued for their ability to do this. This function also contributes to the use

of nostalgia in marketing strategies.

Memory for product information can be measured through either

recognition or

Recall techniques. Consumers are more likely to recognize an advertisement

if it is presented to them than to recall one without being given any cues." (See

Solomon 1994 137-138) Learning theories. Marketing and Involvement

Theory Examples of low involvement Examples of high involvement

Free sample of hair shampoo delivered Faced with mounting debts, individual

through front door and stored in responds to advertisement offering

bathroom. When usual shampoo runs to solve the problems with a single out,

trial pack is used, found acceptable loan. Learns the cost of borrowing and

purchased (or not).From loan sharks

A positive emotional response is the generation of higher-order

Generated by the use of a particulate conditioning allows the customer to

Classical pop tune. This becomes associated have positive feelings

about a Conditioning with a product, even though the product, which

may be more person does not consciously pay expensive than

alternatives, e.g. attention to the advertising luxury goods.

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A common brand of baked beans id Clothes purchased and worn give

Operant purchased. They taste 'OK1. The rise to numerous complements,

conditioning consumer continues to purchase that Further cloths of the same

label are brand bought.

An individual learns that Amstrad Keen cooks learn about various

Iconic rote makes personal computers without makes of kitchen knives by

careful learning ever consciously focusing on PCs or reading of

advertisements with they Amstrads advertisements find enjoyable Study on

Consumer Behaviour

The Guardian' unavailable at Commuter, distressed by daily Insight

newsagents when on holiday, difficulties with parking decides to learning

Customer buys 'the Independent' purchase mountain bike to solve the instead

problem Consumer spots 'low salt, low sugar' Consumers as a family, having won

Latent beans on the supermarket shelf, the pools, decide that they can now

learning Remembers healthy eating afford their 'dream car. Choose advertisements

and purchases tin model they have always wanted A child learns parental roles by

Individual observes reaction to a Vicarious observation but without really friend s

new style sutt before deciding learning thinking about it to purchase Car taken

to garage for service. Commuter finds level of smoke Customer offered a new

higher-Experimental pollution on upper deck of bus too powered model to use for

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the day-learning offensive to tolerate and decides to Impressed by the car, the

consumer travel on lower deck decides to move up the range when the time comes

to change car. Consumer Decision Processes The most common, everyday

problem solving sequence is:

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In the marketing context, Engel, Blackwell and Minored suggest

that this becomes:

S Information search S Evaluate alternatives S Purchase and Outcomes

Stage I: Information Search

The first step in this stage is often internal memory search to establish whether

the individual possesses enough information about the available options to make a

decision without further action.

In low involvement consumer decisions this may often be the case, but external

search is more usual with high involvement purchases.

Opinion leadership and word-of-mouth communication will be significant at this

stage, as well as the more formal marketing and advertising messages. Similarly,

past learning, stored in the memory system, is shown to be a significant source

even in extended problem solving situations.

The information search stage is also affected strongly by individual differences and

environmental factors e.g. the traits and orientation of some individual’s means that

they have the personality characteristic of caution - such people will tend to

conduct extensive and detailed information search. Similarly families and reference

groups are likely to make significant contributions to the amount and style of search

conducted.

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Many of our decisions are often made on less than complete information. The

important point is that the purchaser feels that enough information has been

gathered.

Study on Consumer Behavior

In the light of the differences between high and low involvement purchasing,

the perception of the value of continued search is likely to be significantly higher

in high involvement decisions.

The external search is dominated by marketing messages and the information

so gathered should be fed into the memory system via processes similar to the

research on Perception:

Exposure Attention Comprehension Acceptance Retention

Stage 2: Alternative evaluation

"Humans are apparently so constituted that they cannot refrain from evaluating,

judging, appraising or valuing almost everything that comes within their

purview".

Note the importance of the role of criteria in the process of evaluation - the

obvious criterion for a purchasing decision is 'did it achieve its objective?'

However a number of sub issues are involved here:

What objective? It is likely that we have multiple objectives.

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Internal or external outcomes? These possibly conflicting objectives can be

seen as being internal or external to the decision-making unit - we may satisfy our

family but not impress our friends.

When should we measure outcomes? Here we may be looking at the

difference between first impressions and longer-term satisfaction

Do we look for unexpected outcomes?

The criteria we use stem from our values, beliefs, attitudes and intentions.

However it is not unusual for people to seek a single measure that will pin down

the payoffs required. Satisfaction is affected by a number of factors - motivation,

values, expectancy, and self-image - so a variety of criteria may be necessary

against which to judge the effectiveness of our purchase. The reality appears to

be that people adopt some form of compensation strategy in which a perceived

weakness in one attribute can be offset by strength in others.

"Alternative evaluation represents the decision-making stage in which

consumers evaluate alternatives to make a choice. During this stage consumers

must

36

Determine the evaluative criteria to use for judging alternatives

Decide which alternatives to consider

Assess the performance of considered alternatives

Select and apply a decision rule to make the final choice.

1) Determine the evaluative criteria to use for judging alternatives

Consumers may employ a number of different evaluative criteria, including: price,

brand name and country of origin, in making their decision.

These criteria will usually vary in their relative importance or salience. Price

may be a Dominant dimension in some decisions and yet rather unimportant in

others. The salience of evaluative criteria depends on a host of factors: e.g.

situational, product and individual factors.

2) Decide which alternatives to consider

Consumers must determine the set of alternatives from which a choice will be

made (that is, the consideration set).

(3) Assess the performance of considered alternatives

Consumers may also rely on their existing knowledge for judging how well

alternatives Perform along the salient evaluative criteria. The cutoffs or ranges of

acceptable values That consumers impose for evaluative criteria will strongly

determine whether a given Alternative is viewed as acceptable. Study on Consumer

Bead four

37

(4) Select and apply a decision rule to make the final choice

Finally, the strategies and procedures used for making the final choice are

called decision rules. Decision rules vary considerably in their complexity.

Another important distinction is between compensatory and no compensatory

decision rules.

Non-compensatory rules, such as lexicographic, elimination by aspects, and

conjunctive do not permit product strengths to offset product weaknesses. In

contrast compensatory rules do allow product weaknesses to be compensated by

product strengths.

Non-compensatory rules:

Lexicographic under this decision strategy, brands are compared on the

most important attribute. If there is a tie, then the second the most important

attribute is considered; whilst ties continue, then comparisons continue down

the list of attributes in order of importance.

Elimination by Aspects: Very similar to lexicographic procedure. As before,

brands Are first evaluated on the most important attribute. Now, however

the consumer Imposes 'cutoffs' e.g.' must be under £2'; 'must be at least

nutritious'.

38

If only one brand meets the cutoff on the most important attribute it is

chosen. If several brands meet the cutoff, then the next most important

attribute is selected and the process continues until the tie is broken.

Conjunctive: Cutoffs are also important for the conjunctive decision

procedure. Cutoffs are established for each salient attribute. Each brand is

compared, on at a time Against this set of cutoffs. Processing by brand is required.

If the brand meets the cutoffs For all attributes, then it is chosen. Failure to meet

the cutoff for any attribute leads to In contrast compensatory rules do allow

product weaknesses to be compensated by Product strengths. There are two types

of compensatory rules: simple and weighted additive. Study on Consumer Behaviour

1. Simple additive: here the consumer simply counts or adds the

numberoftimes each alternative is judged favorably in terms of the set of

sailevaluativecriteri. The alternative having the largest number of positive

attributes is chosen.

2. Weighted additive: a more complex form of the compensatory rule. The

consumer engages in more refined judgments about the alternatives' performances

simple whether it is favorable or unfavorable.

The relative salience of relevant evaluative criteria is also incorporated into the

decision rule. In essence, a weighted additive rule is equivalent to the

multiattribute attitude models

39

Phased decision strategies: These involve the sequential use of at least

two different decision rules as a means of coping with a large number of

choice alternatives. Phased strategies typically consist of a two-stage

process.

In the initial stage, one type of rule is used as a screening device to help

narrow down the choice set to a more manageable number. A second

decision rule is then applied to the remaining alternatives to make the final

choice.

Significance of Consumer Behaviour: The study of Consumer

Behaviour is the study of how individuals make decisions to spend their

available resources (time, money, effort) on consumption related items. It

includes the study of

What they buy

Why they buy it

When they buy it

Where they buy it

How often they buy it

How often they use it

Study on Consumer Behavior

40

Consumer Behavior focuses on how and why consumers make decisions to buy

goods and services. Consumer Behaviour research goes far beyond these facets of

consumer behaviour and encompasses all of the behaviour that consumers display

in searching for. Purchasing, Using, Evaluating and Disposing of products and

services that they will satisfy their needs

Definition of Consumer Behaviour:

Consumer behaviour is defined as activities undertake when obtaining, consuming,

and disposing of products and services. Simply stated, consumer behaviour has

traditionally been thought of as the study of "Why people buy". With the premise

that it becomes easier to develop strategies to influence consumers once a

marketer knows why people buy certain products or brands.

Consumer behaviour also can be defined as a field of study, focusing on

consumer activities. As the study of consumer behaviour has evolved, so has its

scope. Historically, the study of consumer behaviour focused on buyer behaviour

or "Why people buy". More recently, researchers and practitioners have focused

on Consumption analysis, why and how people consume in addition to why

and how they buy. Analysis of consumption behaviour represents a broader

conceptual framework than buyer behaviour does because it includes issues that

arise after the purchase process occurs. There are several activities included in the

definition of consumer behaviour - obtaining, consuming, and disposing.

Obtaining: It refers to the activities leading up to and including the

41

Purchase or receipt of a product.

Consuming: It refers to how, where, when and under what circumstances

consumers use products.

Disposing: It includes how consumers get rid of products and packaging.

Slav on Consumer Behaviour

42

CHAPTER-IV

DATA ANALYSIS

43

DATA ANALYSIS

1. A question was asked to the consumers whether they consume soft drinks

or not and the following are the results.

ATTRIBUTES No. OF

RESPONDENTS

% OF

RESPONDENT

S Yes 95 95% No 05 05%

The above table depicts that 95% of the consumers consume soft

drinks.

yes

no

I. A question was asked to the consumers to know how often they consume

ATTRIBUTES No. OF

RESPONDENTS %

OF RESPONDENTS

44

Daily 32 34%

Twice in a week 43 45%

Once in a week 13 14%

Once in a month 07 07%

The above table depicts that 45% of the consumers consume soft drink twice in

a week and the major percentage of consumers consume soft drink daily.

chart 2

Daily

Twice in aweek

Once in a week

Once in amonth

3. A question was asked to the consumers that about their favourite soft drink

and the following are the results.

ATTRIBUTES No. OF RESPONDENTS % OF RESPONDENT

45

S Coca-Cola 14 15%

ThumsUp 34 36%

Sprite-Pepsi 33 03 35% 03%

7 up 02 02%

Dew 03 03%

Others 06 06%

The above table depicts that 36% of the Consumers consume ThumsUp, 35%

of the Consumers consume Sprite, 15% of Consumers consume Coca-Cola.

chart 3

Coca-Cola

ThumsUp

Sprite-Pepsi

7 up

Dew

Others

4. A question was asked to the Consumers whether the product price is

Affordable or not and the following are the results.

46

ATTRIBUTES No. OF RESPONDENTS

% OF RESPONDENTS

Affordable 71 75%

Costly 12 13%

Lesser 06 06%

Can't say 06 06%

The above table depicts that 75% of respondents can afford, 13% of

respondents feel the product is costly, 6% of the respondents feel the product is

less costlier than it should be. 6% of the respondents cannot say about the

product

price.

Affordable

Costly

Lesser

Can't say

5. A question was asked to the Consumers about (he reasons for preferring

The drink and following are the results.

ATTRIBU No. OF % OF

47

TES RESPONDENTS RESPONDENT!

Taste 38 40%

Quenching thirst

09 09%

Strong 1 I 13%

Gas Content

09 09%

Others 28 29%

The above table depicts that 40% of the Consumers consume the product

preferring the Taste, 09% of the consumers consume the product to quench the

thirst and 09% of the consumers consume the product for its gas content.

chart 5

Taste

Quenchingthirst

Strong

Gas Content

Others

6. A question was asked to the consumers about the role of flavour in the

Product promotion and following are the results.

48

ATTRIBUTES No.

OF RKSPONDEINTS

% OF RESPONDENT

Efficient 50 53%

Very Efficient 11 35%

Neither Efficient Nor Inefficient 07 07% Inefficient 05 05%

The above table depicts that 53% of the consumers feel the flavour is efficient,

35% of the consumers feel the flavour is very efficient, 7% of the consumers

feel the flavour is neither efficient nor inefficient, 5% of the consumers feel the

flavour is inefficient.

chat 6

Efficient

Very Efficient

Neither EfficientNor Inefficient

Inefficient

7. A question was asked to the Consumers about their opinion on packaging

of the product and the following are the results.

49

ATTRIBUTES

No. OF RESPONDENTS

% OF RESPONDENTS

Very Good 14 15%

Good 71 74%

Neither Good Nor Bad 10 11% Bad 00 00%

chart 7

V ery Good

Good

Neither GoodNor B ad

B ad

8. A question was asked to the consumers about the impact on Product

Promotion and following are the results.

50

chart 8

Very Efficient

Efficient

Neither EfficientNor Inefficient

Inefficient

ATTRIBUTES No. OF RESPONDENTS

% OF RESPONDENTS

Very Efficient 24 25%

Efficient 51 54%

Neither Efficient Nor Inefficient 13 14% Inefficient 07 07%

51

9. A question was asked to the consumers about the product availability and

the following are the results.

ATTRIBUTES No.

OF RESPONDENTS

% OF RESPONDENTS

With in the reach 72 75%

So far 13 14%

Difficult to get 10 13%

-

chart 9

With in thereach

So far

Difficult to get

52

10. A question was asked to the consumers about the media, which shows

impact on product promotion, and the following are the results.

ATTRIBUTES No. OK RESPONDENTS % OF RESPONDENT*

T.V 60 63%

News Paper 05 05%

Hoarding 14 14%

Internet 16 17%

53

chart 10

T.V

News Paper

Hoarding

Internet

54

CHAPTER-V

FINDINGS CONCLUSIONS & SUGGESTIONS

FINDINGS CONCLUSIONS & SUGGESTIONS

The study undertaken has highlighted certain facts. They are

1. The important factors that influence the purchase decisions for a soft

drink is the taste and flavour.

2. Besides the factors mentioned above the other important factors that

Influence the purchase decisions were found to be advertising and

Price.

3. Sales promotion program taken up by the company is also popular

Among the respondents. The product is very much popular for its easy

55

availability

6,2 SUGGESTIONS

Suggestions have been made based on certain factors as highlighted by the

study.

1. Efficient Promotional activities pertaining to consumers are to

be taken up.

2. Company should improve the quality of packaging.

3. Introduction of a new flavour is suggested to make the product

promotion more efficient.

4. It is suggested that the company should increase the usage of

Internet for further Promotional activities.

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QUESTIONNARE

STUDY ON CONSUMER BEHAVIOUR

1 ) Whether you consume soft drinks or not?

• Yes • No

2) How often will you consume soft drinks?

• Daily

• Once in a week

3) What is your favourite soft drink?

• Coca-Cola • Thums Up

• Twice in a

week

• Once in a

month

57

• Pepsi • 7up

• Others

4) Whether the product price is Affordable or not?

• Affordable • Costly

• Laser • Can't say

5) What is the reasons for preferring the drink?

• Taste • Quenching

thirst

• Strong • Gas

Content

• Others

6) What is the role of flavour in the Product promotion?

• Efficient •

Very Efficient

• Neither Efficient Nor Inefficient •

Inefficient

58

7) What is your opinion on packaging of the product?

• Very Good • Good

• Neither Good Nor Bad •

Bad

8) What is the impact on Product Promotion?

• Very Efficient • Efficient

• Neither Efficient Nor Inefficient • Inefficient

9) What is the product product availability?

• With in the reach • So far • Difficult to get

10) What about the media, which shows impact on product promotion?

• T.V • Newspaper

• Hoarding •Internet

BIBLIOGRAPHY

1) CONSUMER BEHAVIOUR - Hawkins Best Coney.

2) CONSUMER BEHAVIOUR - Matin Khan.

WEBSITES WWW.COCA-COLA