Thesis

Reasons Behind Preference of Nestle Juices On Other Juices

REASONS BEHIND PREFERENCE OF NESTLE JUICES

ON OTHER JUICES

Submitted By: Nadia Mahmood

08U0135

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TABLE OF CONTENT

ContentsACKNOWLEDGEMENT...............................................................................................................3

ABSTRACT....................................................................................................................................4

Chapter 1: Introduction....................................................................................................................5

Chapter 2: Literature Review...........................................................................................................6

Chapter 3: Methodology & Analytical Choice..............................................................................12

3.1: Research Type:-......................................................................................................................12

3.2: Data Type & Research Period:-..............................................................................................12

3.3: Research Technique:-.............................................................................................................13

3.4: Research Hypothesis:-............................................................................................................13

3.4.1: Theoretical Framework:- ....................................................................................................15

3.4.2: Reference list of the variables under study:- ......................................................................16

3.4.3 Theoretical Framework Justification:-..................................................................................17

3.5.1: Information Gathering & Sampling Procedure:-.................................................................19

3.5.2 Sampling Frame:-.................................................................................................................19

3.5.3 Sampling Procedure:-...........................................................................................................19

3.5.4 Questionnaire Development:-...............................................................................................20

3.5.5 Population:-...........................................................................................................................21

Chapter 4: Estimation, Analysis & Conclusion ............................................................................22

4.1.1 Interpretation of Questionnaire:-..........................................................................................22

4.1.2 Hypothesis Testing through Chi Square test :-.....................................................................40

4.1.3 Regression Model:-...............................................................................................................55

Conclusion....................................................................................................................................57

Limitations ....................................................................................................................................58

Appendix 1

QUESTIONAIRRE.......................................................................................................................59

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Appendix 2

REFERENCE................................................................................................................................63

ACKNOWLEDGEMENT

This research paper has been accomplished under the guidance of my instructor to whom I pay

special thanks Ms. Mehrukh Jawaid. She accepted my topic and allowed me to present some

significant details in the light of the chosen topic. I have been able to gather relevant data and

updated information through some valid sources which include both primary and secondary data.

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ABSTRACT

This study was designed to know the reasons behind preference of nestle juices on other juices.

There are many attributes which helps in the buying decision of consumer. However through

research we come to know that there are four major factors which force the consumers to buy

Nestle juices. The four factors quality, taste, advertising and packaging force the consumer to

prefer Nestle juices on other juices.

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Chapter 1: Introduction

Nestle is the name of taste and quality. Nestle is a very old brand and through its rapid increase

in sales it has created a brand image among its consumers. Nestle is a famous brand for many

products including milk, water etc but here we will talk about nestle juices which is recently

named AS Nestle Fruita Vitals, Although Nestle has a very strong brand image and people are

rapidly shifting from other famous brands like Shezan etc to Nestle because it is providing taste,

quality and health at the same time. Nestle launched its first juice nestle orange in 1996. At that

time people didn’t like its flavor much. Some found its taste like medicine and some have other

issues then later on they changed the taste. Then people liked its taste and sales were increased

dramatically. By viewing the sales nestle orange company decided to launch new flavors and

they introduced mango, apple, pineapple, black grapes and peach etc and these all flavors were

liked by people. Now recently they changed the name from nestle juices to nestle Fruita Vitals

and they also changed the packaging of the juices and introduced new flavors of juices namely

guava and peach. Packaging also plays an important role in the sales of juices. People prefer to

have those juices which packaging can not damage the quality of juices. Other than that nestle is

also providing a wide variety of flavors. Even though many competitors of Nestle juices are in

the market instead of it, it is leading in the market so that’s why I wanted to know the reasons

behind Nestle juices preference on other juices through research.

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Chapter 2: Literature Review:

Philph W. OTT in his article addresses the health issues which may lead to a healthy body. The

idea of well working of the body can only be achieved by having a good health. To be remain

healthy natural means of promoting heath are always preferable and to achieve it fresh fruit

juices are very good. Squeezed juices are considered to be a better option in getting good health.

It is not possible with the environmental conditions of the country to have all the fruits

throughout the year. Some fruits are available in one season and some are in other season. So it is

not possible to drink the fresh juices of all fruits whole year. In order to fulfill the deficiency

squeezed juices are considered to be a better option. Good health is very necessary for a healthy

mind and now a days with advance in technology heath issues are increasing day by day and a

good way to control your diet is to have minimum one glass of juice daily. There is one juice

issue while having squeezed juices that is packaging. There are some packages of the juices in

which there is a chance of growth of germ , so in order to have a good fruit juice avoid using

these fruit juices. By having fruit juices obesity can also be decreased. It is proven by research

that obesity can be controlled by having juices. Before it was considered that juices can help in

increasing obesity but now the idea is changed. So fruit juices are a good w ay to have a healthy

body and to reduce obesity.

C.Edwin Baker in his article discusses the importance of advertising in the promotion of any

product. Advertising can lead a product to a great success or can damage the impact of the

product. So it depends a lot on the ad to create the value of the product. Another reason to have a

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good ad is that it is a good way to compete with your competitors. The best medium for an ad

can be television and a newspaper or magazine. A good ad can give a historical change to your

product. With the rapid increase in new technology to select the right medium for your ad is also

very important. To advertise your product in a better way not only a good ad is require but also

right medium is require.

Paula Martinac in her article discusses that initially when the orange was introduced in the

market it was not liked by the consumers because of its taste but then the taste of orange juice

was changed and people found it favorable. The value of fresh juice is always more than the

value of squeezed or concentrate juice. Before it was considered that concentrated juice is good

for health but now the idea is changed and squeezed juice is considered best for health. Orange

juice is considered to be best for getting all the nutrients required for the body and it can be

better if possible to drink squeezed juices rather than concentrated juices.

Muhammad Akhtar is an article which talks about relaunching of nestle juices. Recently in 2011

nestle changed the packaging of their juices and their name as well from nestle juice to nestle

fruita vitals. As nestle is already a well established brand so people are easily willing to give

place available in the market by nestle. The reason of relaunching the nestle juices is to remind

the customers new and old flavours of juices and to give a better quality. They just changed the

name and packaging of their juice but the taste is remain same as it was before. The main

objective of nestle is to give maximum satisfaction to the customers and nestle fruita vitals is

doing a great job in it.

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Natalia Azhar article is about to decrease the wastage of fruits in the country by having more

juice plants in Pakistan. Nestle juice is one of the leading juice company in Pakistan and it sales

are increasing day by day. By keeping in mind sales of Nestle juices it can be pretty good idea to

make plants in the country. Pakistan is rich in producing finest fruits. So by making juice plants a

large amount of fruits can be saved rather than wasting. By making juice plants in country

company revenues can be high and cost can be minimized and quality can be increased. By

making plants within country can also provide employment opportunities. Our economy supports

the local industry and takes most of the inputs within the country. Nestle is one of the leading

company worldwide and in Pakistan it is involved in manufacturing, processing and sales of the

products. There is chance o that growth will suffer in coming years if government slaps the taxes

on food. Nestle Pakistan needs to work on some areas to increase their revenues more. They

should increase processing facilities within the country. By increasing the processing facilities

inputs within the country cab be utilized in a better manner. And if nestle have two juice plants

within the country then there will be tremendous increase in the growth of nestle juices.

Ibn al-Qayyim discusses the importance of squeezed juices. Fresh juices can lower the mean

body index, smaller waist circumference and lower insulin resistance compared to those people

who do not use juice in daily routine. Previous studies could not proved that juices can decrease

the obesity but in recent studies it is proved that fresh juices can lower the risk of obesity. In the

recent studies it is proved that the risk of metabolism syndrome was 15% and the risk of obesity

was 22 percent lower in the body of all people who consumed fresh juices on daily basis. It is not

possible to have fresh juices throughout the year so the possible way is to use packed juice

available in the market. The fruit juice can be very beneficial in achieving good health.

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Hui-shung Chang and Henry W. Kinnucan in their article talks about the advertising affect on

consumers. In this article they discuss advertising helps a lot in buying decision of a consumer.

After watching the ad they also come to know about the quality of the product. In this paper they

not only talk about quality but also said that consumer perception about the product can be

change through advertising and health information. Information about a product can be biased

and unbiased and it varies person to person. Consumer preference depends upon how much they

know about the product and for this advertising plays an important role.

Jagdish N. Sheth in his article discuss that what are the ways to measure effective advertising.

This article talks about three things. First of all how advertising distorted in the mind of

consumer and what are the factors behind distortion. Second how does advertising influence the

consumer buying behaviour and how does advertising influence consumption. All these factors

are observed through research and result shows that advertising effects the buying behaviour of

consumer.

Sherman T. Folland, PhD article is the result of the sample size of 800 respondents out of which

only 380 used for analysis regarding their advertising behaviour and attitudes. The use of

advertising is growing despite the fact most of these physicians are averse to advertising and

pessimistic about its effects. Advertising is somewhat more prominent among Physicians in

larger group practices and among those physicians for whom the chief means of reimbursement

is the prepayment contract. The research has relevance for health care marketing and for policy

analysis concerned with the effects of recent court decisions that remove restrictions on

physician advertising.

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George Norman, Lynne Pepall and Dan Richards examine the decision to advertise a

homogenous good. We show that the likelihood of inefficiently low advertising rests heavily on

how one models the mechanism by which advertising affects demand. Regardless of this

mechanism, however, there is always a lower bound of concentration below which no

advertising occurs even when welfare-enhancing. In such cases, mandatory programs will raise

welfare if they induce entry, although producer surplus may decline. Our model also provides an

explanation for the stylized fact that advertising intensity first rises and then falls as

concentration increases.

Glenn Porter in this atricle talks about the nature and role of packaging design in the twentieth

century United States business system. By the time of Great Depression packaging had become a

large and well developed industry as changes in retailing and marketing gave the package a

central place in the emerging consumer society. Many of the basic patterns set by about 1930

would persist therefore, including the institutional sources of design for packaging.

(Sutherland, 2000) wrote an article on influencing people. In this article he discusses how to

influence people through advertisement and the effect of advertisements on consumers. The

article is about the myths and mechanisms used for effecting people through the advertisement in

positive sense. Small effects of the advertisement can influence the brand in positive and

negative sense. Advertisers have to be very careful in making advertisements so that

people doesn't get influenced in negative way if people perceived it negatively they will be

penalized.

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As the advertisement is shown again and again to the people so it has many effects on the

targeted people. We should consider the higher impact rather than the smaller impact. Greater

impacts of advertising occur whenever the advertiser says a new thing. We need to understand

and measure the effect of advertisements. There should be proper detail of the product in the

advertisement so that the buyer could easily differentiate this particular product with another one.

Image advertisement is easier to see in relation to high involvement products. It safes time for

the people and it creates a greater amount of effect on the people as compare

the advertisement in written form. The author gives the example of Volvo Company which

focused on image advertisement on safety between 1970 to 1990.The output of

that advertisement is that on the scale of 1 to 10 for safety, because of this all the people have

good impression of Volvo company. The author also gave examples of other companies too and

also their statical analysis. The role of advertising is to persuade and to shape the behavior to

make people believe it. Marketers and advertisers take into account and focuses on the image

advertising. Furthermore the author discusses about that how people minds are working and how

much they are aware of the rapidly changes around. In this context there is an example in

the article in which he explains that how people decide that what they want to eat and where they

will be going to eat that. They always think of alternatives that are available to them. If the

brand advertisements are so strong then people will always go for that option to buy that product

and eat it. Advertisement can go in favour of the brand or not in the favour of the brand. Two

mental processes in decision making are weighing up the alternatives is one thing and the other is

which alternatives get weighted up. Advertisement should be done so carefully because either it

will earn u a lot or make you borrower for the rest of your life. Advertising agencies are

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spending huge amounts on the advertisements. In short it is very difficult to analyze advertising's

effects because people are of different types , they have different thinking, tastes and are from

different backgrounds some of them like a thing but some of them dislike the same thing.

But advertisement has a effect on the people that sooner or later shapes the behavior of end

consumer.

Chapter 3: Methodology & Analytical Choice

3.1 Research Type:

The research type is quantitative. Quantitative research is includes numbers and figures

3.2 Data Type & Research Period

There are mainly two types of data, quantitative and qualitative. Qualitative data refers to data

that may classify items in terms of certain characteristics. This type of data can be observed and

recorded however; it cannot be measured. Quantitative data refers to data that is numerical and

can be measured using various statistical techniques for instance quality, taste, advertising and

packaging effect can quantify through quantitative measure. The information and data gathered

for conducting this research is from two major sources i.e Primary data sources and Secondary

data sources.

In primary data sources, the data has been mainly collected through surveys, as the

data has been largely collected through questionnaires. Each question of the questionnaire will be

design with careful consideration. Different test will be conducted which is a primary data

source.

In secondary data sources, the major sources of the research book and different

periodicals. The internet served as the source for the secondary data used. References of these

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sources will be attached at the end of this research. Many research articles have been studied

carefully to deduce information from them and for questionnaire building. Further the secondary

sources have helped to identify the variable which forces the consumer to prefer Nestle juices on

other juices. It is important to note that both data collected through primary and secondary

sources were used to help conclude the research and offer recommendations.

3.3 Research Technique:

The Research is conducted by using a survey Research technique. The data is collected by the

sample through a questionnaire. The questionnaire includes structured questions and each is

developed by using the variables gathered through the secondary research. The Secondary

research comprised of Research articles.

3.4 Research Hypothesis:

It is a faltering statement about the relationship between two or more variables. Hypothesis

statement is a prediction about what you expect to happen in your study.

People prefer / not prefer Nestle juices on other juices

H0= People not prefer Nestle juices on other juices

H1= People prefer Nestle juices on other juices.

Advertising:

Ho: There is no relationship between advertising and buying behavior of consumer.

H1: There is a relationship between advertising and buying behavior of consumer.

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Packaging:

Ho: There is no relationship between packaging and buying behavior of consumer.

H1: There is a relationship between packaging and buying behavior of consumer.

Taste:

Ho: There is no relationship between taste and buying behavior of consumer.

H1: There is a relationship between taste and buying behavior of consumer.

Consumer Health Conscious Level:

Ho: There is no relationship between consumer health conscious level and buying behavior of

consumer.

H1: There is a relationship between consumer health conscious level and buying behavior of

consumer.

Quality:

Ho: There is no relationship between quality and buying behavior of consumer.

H1: There is a relationship between quality and buying behavior of consumer

.

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3.4.1 Theoretical Framework

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PACKAGING

QUALITY

CONSUMER HEATH CONCIOUS LEVEL

TASTE

ADVERTISING

USAGE OF JUICES


3.4.2: Reference list of the variables under study

Expected signs of the variables in a tabular form

ARTICLES VARIABLES CORELATION AUTHOR

ADVERTISING AND

A DEMOCRATIC

PRESS, Advertising,

Information and

Product Quality: The

Case of Butter,

Advertising and the

mind of the

consumer:Journal of

marketing

Advertising by

Physicians: Behaviour

and Attitudes

ADVERTISING +- C.EDWIN BAKER

Hui-shung Chang and

Henry W. Kinnucan

Sutherland

Sherman T. Folland, PhD

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NUTRITIONAL

VALUE OF

ORANGE JUICE VS

ORANGE

CONCENTRATE

QUALITY +- PAULA MARTINAC

JOHN WESLEY

HEALTH AS A

WHOLENESS

CONSUMER

HEALTH

CONSCIOUS

LEVEL

+ PHILPH W. OTT

3.4.3 Theoretical Framework Justification:

VARIABLES:

Dependent

Usage of juices: Juices are a natural mean to get health. Juices are used mostly by people who

are health conscious. Health conscious people use juice in their daily routine to remain healthy.

Juices can also lower the rate of obesity. So people also used it to lower the rate of obesity. It is

not possible to drink fresh juices throughout the year so in order to complete the deficiency

people used stored juices.

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Independent

PACKAGING:

Packaging plays an important role in the value of a product. So in order to make a good product

packaging is very important. Packaging is also important for quality purposes. By having good

packaging quality can be maintained.

QUALITY:

Quality of juices is very important because the purpose of taking juice is to maintain health so

for health purposes quality is most important. Quality can be achieved by using an appropriate

method to extract juice from fruits and using good ingredients in the juices. Any consumer cant

compromise in quality.

TASTE:

Taste is something because of which buying behavior of people change. If the taste of the juice

will be according to the culture of the area, it will be more likely among the consumers. So in

order to increase the sales of the product the taste of the product should be according to the

region.

ADVERTISING:

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Advertising is a way to promote any product in the market. A good ad is very necessary to

introduce the product or to remain in the mind of consumers. Advertising plays an important role

to create value of the product. So a good ad is the need of any product.


Health is the most important thing for any consumer. So to remain healthy fruit juices are

considered very good. It is not possible to have fruit juices throughout the year because in our

country there are specific months in which specific fruit can be grow. So the best idea is to use

stored juice to remain healthy.

3.5.1: Information Gathering & Sampling Procedure:

Information gathering and sampling procedure is discussed below:

3.5.2 Sampling Frame:

A sampling frame is a device used to derive the actual sample. It is an indispensable element that

is needed to draw the type of sample that is most appropriate for the research. For the purpose of

this research people preference of Nestle juices on other juices .The list of elements upon which

the sample is selected from the population include the fact that they should be easily reachable to

the researcher due to which convenience sampling is used The other two elements of the frame

include the fact that the overall ratio of males to females should be equal. There will be no

discrimination between genders. People should fall in the income brackets of upper class and

upper middle class so that they can afford to buy the branded product.

3.5.3 Sampling Procedure:

There are two types of sampling methods which includes the probability sampling and non-

probability sampling. In probability sampling, the researcher knows the exact possibility of 19


selecting a member of the population whereas in the non-probability sampling the chance of

being selected cannot be determined. The probability sampling allows the researcher to calculate

the exact meticulousness of the estimates, due to its costly and relatively time consuming nature;

non-probability sampling was used for the purpose of conducting this study.

There are three types of non-probability sampling, convenience sampling, quota sampling and

judgmental sampling. Convenience sampling is a non-probability sampling technique where

subjects are selected because of their easily availability to the researcher. Quota sampling is a

non-probability sampling technique which has the assembled sample has the same proportions of

individuals as the entire population with respect to known characteristics, traits or focused

phenomenon. Judgmental sampling is when you make judgments in order to select the units from

the population.

Of the three, convenience sampling was used to select the sample of the designated population.

Thus the final sample was based on the ease of access that the researcher had in communicating

with the respondents.

The final sample consisted of 100 respondents of both genders having different ages, different

income brackets, occupations, etc, all of whom were selected to respond to the questionnaire

provided.

3.5.4 Questionnaire Development:

The questionnaire was made to get the responses from respondents. The purpose was to gather

data from the selected population sample with regards to the topic i-e people preference of Nestle

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juices on other juices. The questionnaire contained questions that were based on information

regarding the variables identified in the first chapter.

[Questionnaire attached in Appendix 1]

3.5.5 Population:

This study is based in Lahore .The Population includes the people of Lahore (Defence &

Gulberg). Sample of 100 respondents from market and stores conducted and only 50 serious 50

respondents are used for final results.

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Chapter 4: Estimation, Analysis & Conclusion

4.1.1 Interpretation of Questionnaire:

Q:1 Do you take juices?

Frequenc

y PercentValid

PercentCumulative

PercentValid yes 48 96.0 96.0 96.0

no 2 4.0 4.0 100.0Total 50 100.0 100.0

Do you take juices?

N Valid 50Missing 0

Mean 1.04Median 1.00Mode 1Std. Deviation .198Skewness 4.841Std. Error of Skewness .337Kurtosis 22.331Std. Error of Kurtosis .662Minimum 1

22


Maximum

2

23


Out of 50 respondents 48 people take juices in their daily routine and only 2 people out of 50 do

not take juices in their daily routine or completely do not take juices.

24

24.00%

4896.00%

noyes

Do you take juices?


Q:2 Which brands do you use?

Frequenc

y PercentValid

PercentCumulative

PercentValid nestle 32 64.0 64.0 64.0

shezan 14 28.0 28.0 92.0pulpy orange

3 6.0 6.0 98.0

any other 1 2.0 2.0 100.0Total 50 100.0 100.0

Which brands do you use?

N Valid 50 Missing 0Mean 1.04Median 1.00Mode 1Std. Deviation .198Skewness 4.841Std. Error of Skewness .337Kurtosis 22.331Std. Error of Kurtosis .662Minimum 1Maximum 2

25


Out of 50 respondents 32 used Nestle juices normally and 28 respondents out of 50 used Shezan juices in normal routine and 3 out of 50 respondents used pulpy orange in their daily routine and 2 out of 50 respondents used some other brand of juices.

26

1

2.

…

36.00%

1428.00% 32

64.00%

any otherpulpy orangeshezannestle

Which brands do you use?


Q:3 How often do you take juices?

Frequenc

y PercentValid

Percent Cumulative PercentValid daily 43 86.0 86.0 86.0 weekly 4 8.0 8.0 94.0 monthl

y1 2.0 2.0 96.0

rarely 2 4.0 4.0 100.0 Total

50 100.0 100.0

How often do you take juices?

N Valid 50 Missing 0Mean 1.24Median 1.00Mode 1Std. Deviation .687Skewness 3.192Std. Error of Skewness .337Kurtosis 9.980Std. Error of Kurtosis .662Minimum 1Maximum 4

27


Out of 50 respondents 43 people take juices in their daily routine and out of 50 respondents 4 people take juices weekly and out of 50 respondents 2 people take juices rarely.

28

24.00%…4

8.…

4386.00%

rarelymonthlyweeklyDaily

How often do you take juices?


Q:4 Do you agree that Nestle juices taste is according to your region?

Frequenc

y PercentValid

PercentCumulative

PercentValid agree 16 32.0 32.0 32.0

strongly agree

34 68.0 68.0 100.0

Total 50 100.0 100.0

Do you agree that Nestle juices taste is according to your region?

N Valid 50 Missing 0Mean 3.68Median 4.00Mode 4Std. Deviation .471Skewness -.796Std. Error of Skewness .337Kurtosis -1.425Std. Error of Kurtosis .662Minimum 3Maximum 4

29


Out of 50 respondents 16 agree that Nestle juice taste is according to your region and out of 50 respondents 34 strongly agree that Nestle juice taste is according to your region.

30

3468.00%

1632.00%

strongly agreeagree

Do you agree that Nestle juices taste is according to your region?


Q:5 Is fruits real taste is available in Nestle juices?

Frequenc

y PercentValid

PercentCumulative


strongly agree

30 60.0 60.0 100.0

Total50 100.0 100.0

Is fruits real taste is available in Nestle juices?

N Valid 50 Missing 0Mean 3.600Median 4.000Mode 4.0Std. Deviation .4949Skewness -.421Std. Error of Skewness .337Kurtosis -1.900Std. Error of Kurtosis .662Minimum 3.0Maximum 4.0

31


Out of 50 respondents 20 people agree that fruits real taste is available in Nestle juices and out of 50 respondents 30 strongly agree that fruits real taste is available in Nestle juices.

32

3060.00%

2040.00%

strongly agreeagree

Is fruits real taste is available in Nestle juices?


Q:6 What motives persuade you to purchase Nestle juices?

Frequenc

y PercentValid

PercentCumulative

PercentValid taste 7 14.0 14.0 14.0

price 15 30.0 30.0 44.0convenience

28 56.0 56.0 100.0

Total50 100.0 100.0

What motives persuade you to purchase Nestle juices?

N Valid 50 Missing 0Mean 3.42Median 4.00Mode 4Std. Deviation .731Skewness -.854Std. Error of Skewness .337Kurtosis -.599Std. Error of Kurtosis .662Minimum 2Maximum 4

33


Out of 50 respondents 7 respond that taste persuade them to purchase Nestle juices and out of 50 respondents 15 said that price persuade them to buy Nestle juices and out of 50 respondents 28 respond that quality persuade them to purchase Nestle juices.

34

2856.00% 15

30.00%

714.00%

conveniencepricetaste

What motives persuade you to purchase Nestle juices?


Q:7 To what extent do you know that Nestle juices are good to health?

Frequenc

y PercentValid

PercentCumulative

PercentValid to some extent 5 10.0 10.0 10.0

to reasonable extent

12 24.0 24.0 34.0

to a great extent 33 66.0 66.0 100.0Total

50 100.0 100.0

To what extent do you know that Nestle juices are good to health?

N Valid 50 Missing 0Mean 3.56Median 4.00Mode 4Std. Deviation .675Skewness -1.264Std. Error of Skewness .337Kurtosis .368Std. Error of Kurtosis .662Minimum 2Maximum 4

35


Out of 50 respondents 5 people respond that to some extent Nestle juices are good to health and out of 50 respondents 12 people respond that Nestle juices are good to health to reasonable extent and out of 50 respondents 33 respond that Nestle juices are good to health to a great extent.

36

3366.00%

1224.00%

510.00

%

to a great extentto reasonable extentto some extent

To what extent do you know that Nestle juices are good to health?


Q:8 Do you agree that nestle juices quench your thirst?

Frequenc

y PercentValid

PercentCumulative


strongly agree

35 70.0 70.0 100.0

Total50 100.0 100.0

Do you agree that nestle juices quench your thirst?

N Valid 50 Missing 0Mean 3.70Median 4.00Mode 4Std. Deviation .463Skewness -.900Std. Error of Skewness .337Kurtosis -1.241Std. Error of Kurtosis .662Minimum 3Maximum 4

37


Out of 50 respondents 15 agree that Nestle juices quench their thirst and out of 50 respondents 35 strongly agree that Nestle juices quench their thirst.

38

3570.00%

1530.00%

strongly agreeagree

Do you agree that nestle juices quench your thirst?


Q:9 Is juices original quality available in Nestle juices?

Frequenc

y PercentValid

PercentCumulative



18 36.0 36.0 46.0


50 100.0 100.0

Is juices original quality available in Nestle juices?


39


Out of 50 respondents 5 respond that to some extent juices original quality available in Nestle juices and out of 50 respondents 27 respond that to reasonable extent juices original quality available in nestle juices and 5 out of 50 respondents respond that to a great extent juices original quality available in Nestle juices.

40

2754.00% 18

36.00%

510.00

%


Is juices original quality available in Nestle juices?


Q:10 To what extent Nestle juices advertising force you to buy their product?

Frequenc

y PercentValid

PercentCumulative

PercentValid not at all 2 4.0 4.0 4.0

to some extent 3 6.0 6.0 10.0to reasonable extent

16 32.0 32.0 42.0

to great extent 29 58.0 58.0 100.0Total 50 100.0 100.0

To what extent Nestle juices advertising force you to buy their product?

N Valid 50 Missing 0Mean 3.44Median 4.00Mode 4Std. Deviation .787Skewness -1.497Std. Error of Skewness .337Kurtosis 2.063Std. Error of Kurtosis .662Minimum 1Maximum 4

41


Out of 50 resondents16 respond that to reasonable extent Nestle advertising force them to buy their products and out of 50 respondents 29 said that to a great extent Nestle advertising force them to buy Nestle juices and out of 50 respondents 2 respond that Nestle advertising not at all force them to buy their products and out of 50 respondents 3 respond that to some extent Nestle advertising force them to buy their products.

42

2958.00% 16

32.00%

3…

24.00%

to great extentTo reasonable extentto some extentnot at all

To what extent Nestle juices advertising force you to buy their product?


Q:11 Do you think so packaging can effect quality of juices?

Frequenc

y PercentValid

PercentCumulative



14 28.0 28.0 40.0


50 100.0 100.0

Do you think so packaging can effect quality of juices?

N Valid 50 Missing 0Mean 3.48Median 4.00Mode 4Std. Deviation .707Skewness -1.010Std. Error of Skewness .337Kurtosis -.261Std. Error of Kurtosis .662Minimum 2Maximum 4

43


Out of 50 respondents 14 respond that packaging can affect quality of juices to some extent and out of 50 respondents 30 respond that packaging can affect quality of juices to reasonable extent and out of 50 respondents 6 respond that packaging can affect quality of juices to a great extent.

44

3060.00% 14

28.00%

612.00%


Do you think so packaging can affect quality of juices?


Q:12 Is good packaging force the consumer to change their buying preference?

Frequenc

y PercentValid

PercentCumulative



16 32.0 32.0 42.0


50 100.0 100.0

Is good packaging force the consumer to change their buying preference?


45


Out of 50 respondents 5 respond that to some extent packaging can force the consumer to change their buying preference and out of 50 respondents 16 respond that to reasonable extent packaging can force the consumer to change their buying preference and out of 50 respondents 29 respond that to a great extent packaging can force the consumer to change their buying preference.

46

2958.00% 16

32.00%

510.00

%


Is good packaging force the consumer to change their buying preference?


Q:13 Is nestle juices packaging is upto the mark?

Frequenc

y PercentValid

PercentCumulative



11 22.0 22.0 28.0

to a great extent 34 68.0 68.0 96.05 2 4.0 4.0 100.0Total

50 100.0 100.0

Is nestle juices packaging is upto the mark

N Valid 50 Missing 0Mean 3.70Median 4.00Mode 4Std. Deviation .647Skewness -1.037Std. Error of Skewness .337Kurtosis 1.247Std. Error of Kurtosis .662Minimum 2Maximum 5

47


Out of 50 respondents 11 respond that to some extent juices packaging is upto the mark and out of 50 respondends 34 respond that to a great extent Nestle juices packaging is upto the mark and out of 50 respondents 2 respond that not at all and out of 50 respondents 3 respond that to some extent Nestle packaging is upto the mark.

48

24.00%

3468.00%

1122.00%

36.00

%5a great extentto reasonable extentto some extent

Is nestle juices packaging is upto the mark?


Q:14 Do you think nestle juices quality is good?

Frequenc

y PercentValid

PercentCumulative



15 30.0 30.0 32.0


50 100.0 100.0

14 Do you think nestle juices quality is good?

N Valid 50 Missing 0Mean 3.66Median 4.00Mode 4Std. Deviation .519Skewness -1.145Std. Error of Skewness .337Kurtosis .260Std. Error of Kurtosis .662Minimum 2Maximum 4

49


Out of 50 respondents 15 respond to reasonable extent Nestle juices quality is good and out of 50 respondents 34 respond to a great extent Nestle juice quality is good and out of 50 respondents 1 respond to some extent.

50

3468.00%

1530.00%

1

2.

…


Do you think nestle juices quality is good?


4.1.2 Hypothesis Testing through Chi Square test

Taste:

Ho: There is no relationship between taste and buying behavior of consumer.

H1: There is a relationship between taste and buying behavior of consumer.

Do you take juices? * Do you agree that Nestle juices taste is according to your region? Crosstabulation

Count

Do you agree that Nestle juices taste is

according to your region? Total

agreestrongly

agree agreeDo you take juices?

yes 16 32 48no 0 2 2

Total 16 34 50

Chi-Square Tests

Value df

Asymp. Sig. (2-sided)

Pearson Chi-Square

3.616(a) 3 0.03

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The result of chi-square shows that p-value less than 0.05 means hence we will reject Null

Hypothesis and accept the alternative hypothesis H1 which means that there is a relationship

between taste and buying behavior of consumer.

Advertising:

Ho: There is no relationship between advertising and buying behavior of consumer.

H1: There is a relationship between advertising and buying behavior of consumer.

Do you take juices? * To what extent Nestle juices advertising force you to buy their product? Crosstabulation

Count

To what extent Nestle juices advertising force you to buy their product? Total

not at allto some extent

to reasonable

extentto great extent not at all

Do you take juices?

yes 0 3 16 29 48no 2 0 0 0 2

Total 2 3 16 29 50

Chi-Square Tests

Value df


Pearson Chi-Square

1.077 2 0.041

52


The result shows that chi-square value is less than 0.05 we will reject null hypothesis and accept the alternative hypothesis H1 which shows that there is a relationship between advertising and buying behavior of consumer.

Packaging:

Ho: There is no relationship between packaging and buying behavior of consumer.

H1: There is a relationship between packaging and buying behavior of consumer.

Do you take juices? * Do you think so packaging can affect quality of juices? Crosstabulation

Count

Do you think so packaging can effect quality of juices? Total

to some extent

to reasonable

extentto a great

extentto some extent

Do you take juices?

yes 6 13 29 48no 0 1 1 2

Total 6 14 30 50

Chi-Square Tests

Value Df


Pearson Chi-Square

2.000 2 0.031

53


The result shows that chi-square value is less than 0.05 we will reject null hypothesis and accept the alternative hypothesis H1 which shows that there is a relationship between packaging and buying behavior of consumer.


Ho: There is no relationship between consumer health conscious level and buying behavior of

consumer.

H1: There is a relationship between consumer health conscious level and buying behavior of

consumer.

Do you take juices? * To what extent do you know that Nestle juices are good to health? Crosstabulation

Count

To what extent do you know that Nestle juices are good to health? Total

to some extent

to reasonable

extentto a great


Do you take juices?

yes 5 11 32 48no 0 1 1 2

Total 5 12 33 50

Chi-Square Tests

Value Df


54


Pearson Chi-Square

10.903 2 .069

The result shows that chi-square value is less than 0.05 we will reject null hypothesis and accept the alternative hypothesis H1 which shows that there is a relationship consumer health conscious level and buying behavior of consumer

Quality:

Ho: There is no relationship between quality and buying behavior of consumer.

H1: There is a relationship between quality and buying behavior of consumer.

Do you take juices? * Do you think nestle juices quality is good? Crosstabulation

Count

Do you think nestle juices quality is good? Total

to some extent

to reasonable

extentto a great


Do you take juices?

yes 1 15 32 48no 0 0 2 2

Total 1 15 34 50

Chi-Square Tests

Value Df


Pearson Chi-Square

.777 3 0.028

55


The result shows that chi-square value is less than 0.05 we will reject null hypothesis and accept the alternative hypothesis H1 which shows that there is a relationship between quality and buying behavior of consumer

4.1.3 Regression Model

Parameter Coefficient Std error T- statistics P value

Constant 0.0362095 0.264635 0.123457 0.05234

Advertising 0.2532132 0.173073 2.818798 0.05275

Packaging 0.441173 0.129289 2.532664 0.01890

Quality 0.128719 0.164532 0.606021 0.03872

R-squared = 81.27689 percentR-squared (adjusted for d.f.) = 79.81294 percentStandard Error of Est. = 0.123879Mean absolute error = 0.135316

Analysis of Variance

Source Sum of Squares

Df Mean Square F-Ratio P-Value

Model 6.78926 6 1.3782457 31.62 0.00000021

Residual 2.42163 20 0.0347329

Total (Corr.) 9.21089 26

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= 0.0362095+ 0.2532132* Advertising + 0.441173* Packaging +0.128719 * Quality

The regression model tested has a coefficient of determination or R squared of 81.27689 percent.

This R-squared value measures the quality of fit and since R2 in this situation is near to 1, it

shows a good overall fit for the model. Adjusted R2 is a better measure for quality of fit, as it is

adjusted for the degree of freedom which is also known as df, comes out to be 79.81294 percent;

we can conclude that 79.8% of the variation in purchase intention around its mean is explained

by regression model.

If we do comparison of the actual values that we have with the estimated values it is done in

order to judge the adequacy of the estimated regression through the ANOVA table that is shown

above. Although R2 and adjusted R2 measure the overall degree of fit, the F- test provides a

formal hypothesis test of the overall fit. Greater the F-value, stronger the relationship between

the variables. For this regression the F- value comes out to be 31.62 with an associated P-value

of 0.0000 and since the P- value of 0.0000 < 0.05 we are 95% confident that is statically

significant relationship exists between the preference of Nestle juices and all other independent

variables. Standard error of estimate is the standard deviation of the observed values of Y to

predicted values of Y.

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Conclusion

The thesis, Preference of Nestle juices on other juices is very informative for future research.

Overall five attributes were extracted from the literature reviews of past studies on this topic,

these were: Quality, Packaging, Taste, Advertising and Consumer Health Conscious Level.The

research shows a very positive response dependent variable has a very strong relationship with

independent variables and major variable towards

The results were very biased towards Nestle juices and major reasons behind preference of

Nestle juices on other juices are quality, taste, packaging and advertising of Nestle juices. This

research shows that Nestle juices are preferred brand among the masses. It is the choice of

majority of people as it is maintaining its position and market share and giving a tough

competition to other brands. Nestle is the market challenger for other brands in Lahore. Its

effective marketing research and strategy helps in catering to the target market and maintaining

its competitive advantage over other brands. Attaining to the target customers and providing

them with complete value and satisfaction has made it a household name and created customer

loyalty.

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Limitations

A time constraint was a major limitation as it was a term project.

The budget of the project was limited.

As compared to the number of people living in Lahore, the sample size was very small.

Lack of seriousness on the part of the people who filled out the questionnaires.

It is a non-sponsored research, so it cannot be published nor Nestle company can use it.

Convenience sampling may not have been representative of the population.

Limited knowledge.

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Appendix 1

QUESTIONAIRRE

PREFERNCE OF NESTLE JUICES ON OTHER JUICES

USAGE OF JUICES

Q1) Do you take juices?

a)Yes

b)No

Q2) Which brands do you use?

a) Nestle

b) Shezan

c)pulpy orange

d)any other -------------------

Q3) How often do you take juices?

a)Daily

b)weekly

c)monthly

d)rarely

TASTE

Q4) Do you agree that Nestle juices taste is according to your region?

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a) Strongly disagree

b) Disagree

c) Agree

d) Strongly agree

Q5) Is fruits real taste is available in Nestle juices?


b) Disagree

c) Agree

d) Strongly agree

QUALITY

Q6) What motives persuade you to purchase Nestle juices?

a)Quality

b)taste

c)price

d)Convenience

Q7) To what extent do you know that Nestle juices are good to health?

a) Not at all

b) To some extent

c) To reasonable extent

d) To a great extent

CONSUMER HEALTH CONSCIOUS LEVEL

Q8) To what extent do you know that Nestle juices are good to health?

a) Not at all

b) To some extent

61




Q9) Do you agree that nestle juices quench your thirst?


b) Disagree

c) Agree

d) Strongly agree

Q10) Is juices original quality available in Nestle juices?

a) Not at all

b) To some extent



ADVERTISING

Q11) To what extent Nestle juices advertising force you to buy their product?

a) Not at all

b) To some extent



PACKAGING

Q12)Do you think so packaging can effect quality of juices?

a) Not at all

b) To some extent



62


Q13) Is good packaging force the consumer to change their buying preference?

a) Not at all

b) To some extent



Q14) Is nestle juices packaging is upto the mark?

a) Not at all

b) To some extent

c) Can’t say any thing

d) To reasonable extent

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Appendix: 2

References:

Hui-shung Chang and Henry W. Kinnucan (Advertising, Information and Product Quality: The Case of Butter)

Jagdish N. Sheth (Measurement of Advertising Effectiveness: Some Theoretical Considerations)

Sutherland (Advertising and the mind of the consumer. Journal of marketing)

Philph W. OTT (John Wesley On Health As Wholeness addresses)

Sherman T. Folland, PhD (Advertising by Physicians: Behaviour and Attitudes)

Ibn al-Qayyim (Freshly Squeezed Juice Lowers the Risk of Obesity)

Natalia Azhar (Nestle Fuita Vitals Relaunched)

George Norman, Lynne Pepall and Dan Richards (Generic Product Advertising, Spillovers, and Market Co ncentration)

C.EDWIN BAKER (Advertising And A Democratic Press)

Chi, Yeh (The impact of Brand awareness on consumer purchase intention; The mediating effect of perceived quality and brand loyalty. The journal of International Management Studies )

Muhammad Akhtar (Nestle plans to set up two juice plants)

Paula Martinac (The Nutritional Value of Orange Juice vs. Orange Concentrate)

Glenn Porter (Cultural Forces and Commercial Constraints: Designing Packaging in Twentieth-Century United States)

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Thesis

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