International Journal of Management Research & Trends
Volume 4, Issue 1, 2013
ISSN: 0976-9781
©Kaur & Singh
Shifting preferences of Consumers: A Journey from Conventional
food to Convenient food
Ms. Inderpreet Kaur, Assistant Professor, Guru Nanak Institute of Management and Technology,
Ludhiana
Dr. Sukhdev Singh, Professor & Head, Department of Business Administration, Guru Nanak Dev
Engineering College, Ludhiana
Abstract
Purpose- The purpose of this study is to explore and study the awareness and determinants
(demographics and psychographics) impacting consumers food choice towards Traditional food
and Processed Food and reasons for shifting towards processed Food .
Design/Methodology/Approach- Food choice variables have been explored using literature reviews
and exploratory survey of consumers in the age group of Twenty-Seventy Years old. Data obtained
from the reliable sources (e.g. World Health Organization, NSSO data, Euro monitor International
and Data monitor International) has been used to study the implications of consumer food choice
and growing trend towards Cereal Processed Food.
Findings- Based on literature reviews and exploratory surveys, the key determinants impacting
consumers food choice are passion for eating, ambience, taste and convenience for dual-income
families in urban India .Findings indicate that processed food companies can no longer rely on
convenience as USP in India, unless the implications of same on consumers health is given equal
importance in the years to come.
Research Limitations /Implications- Data obtained from the convenience sample and literature
reviews has been generalized for inferring consumption patterns of Indian consumers
(population).Practical Implications- This case study focus on growing trends towards Processed
food and reasons for shifting from Traditional Food to Processed Food. Originality/ value- This
paper focus on determining a food choice model in wake of changing food and eating habits in
India, using literature reviews, exploratory survey and reliable data sources.
Introduction
Sixty four years after independence, Indian lifestyle has undergone many changes. Food and taste
habits are no exception to this. Indian households today welcome food with convenience in cooking
and purchase. Processed Food and taste habits are no exception to this. The food industry has been
very successful in replacing fresh and healthy food from consumers’ diet with processed food.
International Journal of Management Research & Trends
Volume 4, Issue 1, 2013
ISSN: 0976-9781
©Kaur & Singh
Over the years processed food has become one of the fastest growing industries in world as well in
India. The market for processed foods is still in the embryonic stage in the most developing
economies like India and China and is negligible in Africa and Middle East. An excellent analysis,
published by international non- governmental organizations in western countries has given insights
on consumer’s food choice and healthy eating. However, there is a huge literature gap on
consumer’s food preferences and its implications on health in Indian context. This study is an effort
to explore consumer food choice variables in the wake of changing food and eating habits, its
implications on health and a growing trend towards processed food in Indian context.
Growing sales of processed food, particularly products such as ready meals, can be seen as a key
barometer for the Westernization of developing markets, and it is therefore no surprise to find that
seven of the world's fastest-growing major markets for "meal solution" products are in Asia Pacific.
According to Euro monitor International, the market for meal solutions grew rapidly between 1998
and 2006 in Vietnam, Azerbaijan, India, Taiwan, Indonesia, Kazakhstan and Pakistan. Changing
Asian lifestyle spurring “meal solutions”.Euromonitor International.
India is the world largest producer of a whole range of food stuffs including wheat, rice, sugar, tea, milk,
fruit and vegetables. However, the value addition to farm production is only 7% as compared in China,
45% in Philippines and whopping 188% in United Kingdom. The current rate of food processing in India is
just 2%.Thus there exists a wide gap which , given the right incentives, could be increased to 10 % by
2010.This quantum leap is not easy and would require an investment of around Rs 15000crores.The
investment , though colossal , has the potential to generate direct employment for 77 lakh people and
indirect employment for three crores.Such an investment would be very important in increasing the value
addition in food from the current level of 7% to more than 35 % which would than add substantially to
national GDP (Chawlas 2002).The government of India has declared Agriculture and Food processing
industry a priority sector and is offering various fiscal incentives and subsidies to it.(S.K.Singla , Pritpal
Singh and Aditi Arya; 2010)
In volume terms, consumption of breakfast cereals appears to have accelerated during the 2000s.
Certainly, consumption of oats, muesli and high-fibre cereals has expanded dramatically. Health is
undoubtedly the key factor driving this expansion. Central to its success has been the enduring
popularity of these products with children. Indeed around eight in ten children eat cereal for
breakfast on a regular basis, making it an offering that is found in a large majority of households.
International Journal of Management Research & Trends
Volume 4, Issue 1, 2013
ISSN: 0976-9781
©Kaur & Singh
Food consumption patterns in India are rapidly changing from food products to high value food
products and slowly from fresh, unprocessed, unbranded food products to processed, packaged and
branded products. A strong economic growth has brought with it a new set of consumers with
sufficient disposable income who are more conscious of the latest trends in health and hygiene,
particularly in the fast growing cities. (Jabir Ali and Sanjeev Kapoor, Janakiraman Moorthy
2010}.Several factors such as own product prices, relative prices, income levels, population sizes,
urbanization, etc influence food demand. It increases with an increase in the size of population
while increases as well as undergoes structural changes with an increase in income and
urbanization. this is because urbanization results in sedentary lifestyles that impact calorie
requirements to maintain a given body weight, provides larger food choices, exposes to marketing
and reference group influences increases purchase capacity, increases the percentage of working
women, etc. (delisle, 1990; regmi and dyck, 2001 ; wu, 1999; périssé 1983).
Food buying behavior of consumers in most emerging economics such as India has significantly
changed due to an increase in the per capita disposable income, global information and
communication technologies, urbanization, education and health awareness and consciousness,
movement of households towards higher income groups, changes in lifestyle family
structure.(Rao,2000; Shetty,2002; Deshingkar et al; 2003; Vepa 2004}
In recent decades, sustained economic growth and increasing urbanization are fuelling a rapid
growth in the demand for high value food products like fruits, vegetables, milk meat, eggs and fish
(Bhalla and Hazell, 1998; Kumar, 1998; Bhalla et al; 1999; Kumar et al 2003; Landes et al, 2004;
Pingali and Khwaja ,2004; Rao et al; 2006}
Every Indian who shops for food knows this, but the government doesn’t : We spend more on fruit,
vegetables and milk than on rice and wheat.And when the detail numbers for last fiscal, due in a
few months, come out, they will show that in value terms, fruits, vegetables and milk may each over
take cereals in India’s GDP. This is likely to lead to big changes in the way government runs its
massive food economy and procurement and distribution programmes.
With the emergence of the super market and hypermarket culture, consumer preference for
packaged food products has increased significantly in the recent years (Stewart Knox and Mitchell,
2003; Siliyoi and Speece,2004; Wells et al, 2007). The desire for convenience food and an increase
in the number of working women are some of the important factors driving a strong growth of
packaged food products (Goyal and Singh;2007)
International Journal of Management Research & Trends
Volume 4, Issue 1, 2013
ISSN: 0976-9781
©Kaur & Singh
Indian lifestyle has undergone many changes. Food and taste habits are no exception to this. Indian
households today welcome food with convenience in cooking and purchase. The food corporate
have been very successful in replacing fresh and healthy food from consumer diet with fast food
and processed food (Ritu Anand; 2006)
With the spread of urbanization , increasing impact of audio visuals (particularly TV) ,spread of
western education and food habits , upcoming families are becoming more prone to using semi
processed and ready to eat foods , not only because they can afford them (though perhaps
occasionally), but also because the use of these items lessen time spent in kitchens. An increase in
the number of working women over the last decade and tremendous growth of small and nuclear
families, have also opened up the scope for its growth.{Anvita Shaw , Purnima Mathur And
N.N.Mehrotra;1193}
It has been discussed that most of the consumers proper nearby market place the meet their food
consumption requirements.
Purchasing, the supermarket culture is coming up very fast. These supermarket offer co wealthy
packaged food items with choose and pick facilities (Jabir Ali, Sanjeev Kapoor and Janakiraman
Moorthy;2010)
Cereals are predominant and cheapest source of calorie and protein for rural masses in the country.
Due to the low level of per capita income, rural masses are not in a position to compensate for
nutritional decline due to decline in cereals by increasing consumption of fruits and vegetable, milk,
meat etc. to get adequate nutrition. Thus, prices play an extremely important role in determining
food and nutrition security of India’s population.(Ramesh Chand ;2007)
Objectives of the study
In view of changing food and eating habits in Punjab and the factors influencing consumers to buy
Cereal processed food, the key objectives of my study are:
1. To study the present consumer behavior in buying the processed food products.
2. To explore the possibilities of change in consumer behavior and perception due to price factor.
3. To develop a food choice model keeping in view the consumer demographics and consumer
psychographics.
4. Methodology
5. This study is basically an exploratory research to give an insight into the awareness level
and determinants of consumer food choices for cereal processed food. The research design
which was followed is exploratory research design. The cities covered under the research
International Journal of Management Research & Trends
Volume 4, Issue 1, 2013
ISSN: 0976-9781
©Kaur & Singh
were Ludhiana, Jalandhar and Amritsar. The major considerations for choosing these cities
were increasing working population of couples in Ludhiana, Jalandhar and Amritsar
increasing demand for Processed Cereal Food and have variable strata of population as basis
of living standard. Punjab was divided into three belts i.e. Majha , Doaba and Malwa and
based on this division the above mentioned cities one from each belt has been
taken.(Ludhiana from Majha, Jalandhar from Doaba and Amritsar from Malwa belt.
Different income groups of domestic consumers were chosen to get the information. For this
study total samples of 300 consumers were selected on the basis of convenience sampling
i.e. 100 from each city/town. Convenience sampling technique has been used to conduct this
study.
6. The research has been carried out in two stages. In stage I, literature has been done to study
variable impacting consumer food choice worldwide exploratory questionnaire has been
designed on parameters concerning food choice and a consumer survey has been conducted
to study the extent to which consumer demographics like age, income education, profession
gender, size of family and consumer psychographics like taste, preference, liking and buying
motivation has an impact an cereal processed food choice.
Finding of the Research
Study found a relationship between educational qualification of the respondents and age. The reason
for education being independent variable is because it has been found that age determines education
qualification of the respondent. It was found that the percentage of people getting more
educated is increasing with age which means as the age increased the education qualification
also increased. Out of the age group of less than 25, 29.3% are Under-graduates, 41.5% are
graduates, 8.9% are post graduates 15.4% and 4.9% are professionals and doctorates respectively.
Whereas in 26-35 age group majorities of the respondents i.e. 56% are post graduates and rest are
from other educational groups. From the data analyzed it was found that there is a relationship
between the age of the respondents and the occupation. And it was observed that as age is
increasing so is the percentage of people getting into work. In less than 25 aged groups, majority of
the respondents (65.0%) were students while in 26-35 age group 47.7% are service class, 12.3%
business class and 35.4% were professionals. And majority of these service class people around
International Journal of Management Research & Trends
Volume 4, Issue 1, 2013
ISSN: 0976-9781
©Kaur & Singh
40% are working in public sector and 21.4% in private sector. This was significant at 95%
confidence level
From the data the study tried to find a relationship between Gender and other demographic variables
and following was found: Out of total respondents there are 40.8% males and 59.2% females and
out of these 41.9% of males and 70% females are graduates. Males in Punjab are more into
business (32.3%) and females are more into service with 45.6%. Both males are females are
working with private jobs than public sector. This was significant at 95% confidence level
From the data the study tried to find a relationship between Religion and other demographic
variables and following was found:- there are more of Hindu and Sikh males and female. Out of the
Singles, 25.7% are Under-graduates 38.6% are graduates 15.7% are post graduates and
15.7% are professionals. 59.3% of these singles are students and rests are either in service or
business and the service class are working equally in both public sector and private sector. In all the
age groups 42.8% were Hindus, 49.3% were Sikh while 1.0% and 6.9% were Muslim and
Christians respectively out of the total of 40.8% males and 59.2% females.
Family size respondents are majorly either graduates or post graduates with percentage of 34.9%
and 30.8% respectively and family size is bigger in business class as compared to service class.
Further in both private and public sector jobs family size is similar.
The analysis of data on the age of the respondents show that less than 25 age and 26-35 age group
consume more Processed Cereal Food than other age groups. In less than 25 age group 59.3% of
the respondents consume for breakfast, 26.0% for lunch, 9.8% for teatime and 4.9% for dinner. In
26-35 age group 81.5% of respondents consume for breakfast, 9.2% for lunch and 9.2% for teatime.
In age group of 36-45 only 18% consume for breakfast and 46-55 ages consume less cereal
processed with 11% for breakfast. The result was significant at 95% confidence level.
From the data analyzed it was found that between males and females in Punjab Females consume
more cereal process foods than males. Amongst males 64.5% of them consume cereal food during
breakfast and 21.0% for lunch and 7.3% and 7.3% respectively for teatime and dinner respectively.
Amongst females the consumption pattern is that 78.9% consume for breakfast, 11.1% for lunch
and 10.0% for teatime, which was found significant at 95% confidence level.
Married people consume more cereal process food for breakfast than singles, separated and
divorcees. In singles 62.1% of the people consume cereal processed food as breakfast, 22.9% for
International Journal of Management Research & Trends
Volume 4, Issue 1, 2013
ISSN: 0976-9781
©Kaur & Singh
lunch, 10.7% for teatime and 4.3% as dinner. Whereas 82.9% of the married respondents consume
cereal food for breakfast, 9.2% for lunch while 5.9% and 2.0% for teatime and dinner respectively.
In case of separated and divorcees 50% of the respondents consume cereal processed food as
breakfast and 50% of the respondents at teatime. The result was significant at 95% confidence level.
From the data analyzed it was found that family size of up to 2 members consume less cereal
process food and family size of 2-4 members and 4-6 members consume more cereal process food.
And family size above 6 members don’t consumes cereal process food. In family size of 2
members, 88.9% of consumption of cereal food is for breakfast, and 11.1% for dinner. While in
family size of 2-4 members 70.4% consumption is for breakfast, 15.4% for lunch while 8.9% and
5.3% for teatime and dinner respectively. Where as in family size with 4 to 6 members 39.1%
consume as breakfast 8.6% as lunch 4.9% for teatime and 3.0% for dinner and family size with 6
and above members do not consume cereal food which was significant at 95% confidence level.
From the data it was found that as far as educational level and consumption of cereal process food is
concerned Under Graduates and Post Graduates consume more cereal process food than people
with professional degree and people with Doctorate degree. Out of under graduates 58.0% of
respondents consume cereal food for breakfast, 30.0% for lunch and 12.0% consume for teatime.
While the post graduates are concerned 67.3% consume for breakfast, 18.7% for lunch, 11.2% for
teatime and 2.8% for dinner. Only 26% of the professionals and 14.8% of the doctorates consume
cereal food.
From the data analyzed it had been found that students and service class consume more Processed
Cereal Food than Business class, Professionals and Unemployed people. In Service class, 87.6%
consume for breakfast, 6.2% for lunch and 6.2% for teatime. While in Business class 74.1% of them
consume for breakfast and 25.9% for lunch. Only 17.8% and 12.5% of the professionals and
unemployed consume cereal food. Whereas students’ consumption pattern is concerned, 47.0%
consume as breakfast, 31.3% for lunch, 14.5% for teatime and 7.2% for dinner. This was found
significant at 95% confidence level.
From the analysis it was also found that Private Employees consume more cereal process food than
Government employees. In Government employees, 68.2% consume for breakfast, 23.6% for lunch
and 8.2% for teatime. Whereas private employees’ consumption pattern is concerned, 75.2%
consume as breakfast, 10.3% for lunch, 10.9% for teatime and 3.6% for dinner. This was found
significant at 95% confidence level.
International Journal of Management Research & Trends
Volume 4, Issue 1, 2013
ISSN: 0976-9781
©Kaur & Singh
From the data analyzed it was found that as far as religion is concerned it was found that in Punjab
Sikhs and Hindus consume more cereal process food than Muslims or Christians. The consumption
pattern of Hindus is as follows; Out of the total data, 60.0% consume as breakfast, 26.9% for lunch,
8.5% for tea time and 4.6% for dinner. The consumption patter of Sikh was as follows; Out of the
total data, 84.0% consume as breakfast, 5.3% for lunch, and 10.7% for teatime Whereas only 1%
and 6.9% of Muslims and Christians respectively consume cereal food which was found significant
at 95% confidence level
From the analysis of the data it was found that people with higher income consume more Processed
Cereal Food than people with middle income or lower income. The consumption pattern of higher
income group is 74.0% consume as breakfast, 16.3% for lunch, 7.3% for teatime and 2.4% for
dinner. Only 15% and 10% of middle and lower middle income group respectively consume cereal
processed food. This is significant at 95% confidence level.
Regarding monthly spending on Processed Cereal Food is concerned it was found that people spend
around Rs 2000 to Rs 4000 on cereal process food. 53.0% of respondents spend Rs 2000 on the
cereal food, 25.3% respondents around Rs. 2000-4000, 11.8% spend around Rs 4000-6000. Only
9.9% of the respondents are ready to spend more that Rs 6000 on cereal processed food. And People
consume more cereal process food as breakfast than lunch or dinner and they prefer cornflakes
(51%) and porridge/Dalia (33.6%) than oats (14.5%) or Muesli (1%).
International Journal of Management Research & Trends
Volume 4, Issue 1, 2013
ISSN: 0976-9781
©Kaur & Singh
Conceptual Model for Convenience Related Food Choice Behaviour for Processed Food
Food choice model
Given above is the food choice model for demographic and psychographic variables explored in Indian
context.
For decades, Indian food system has been focusing on fresh fruits and vegetables and imbibing food
related lifestyle and culture. Eating home cooked food together in the family after exerting a lot in food
purchase and food preparation has been in the Indian culture for generations ,whereas in today’s fast
paced lifestyle time saving quick cooking breakfast cereals like bread and cereals have become
essential part of our lifestyle. Families now spend more than ever on eating out food away from home
according to national survey report. In view of both spouses working people have been forced from
traditional breakfast of Pranthas to time saving as well as healthy fast cooking cereal based breakfast.
Cereal based food corporates like Kellog’s ,Quaker, Mohun, Saffola and Britannia are pulling out all
the stops of modern marketing, targeting primarily nuclear households. This balanced and nutrition rich
food, high in nutritive fibers is leading to healthy lifestyle.
Due to rise in double income households there is lack of time for cooking traditional breakfast’s.
Moreover Sedentary lifestyle for the whole day in the office is leading to Obesity which has reached
International Journal of Management Research & Trends
Volume 4, Issue 1, 2013
ISSN: 0976-9781
©Kaur & Singh
epidemic proportions globally as well as in India ,with more than 1 billion people overweight and at
least 300 million of them clinically obese and is a major contributor to the global burden of chronic
disease and disability. Obesity and overweight pose a major risk for serious diet-related chronic
diseases, including type 2 diabetes, cardiovascular disease, hypertension and stroke, and certain forms
of cancer. Growing concerns over unhealthy food, fat content, exotic processing has widely addressed
significance of food which is produced according to a set of principles and standards concerning food
safety and quality. Recent food scares, as well as concern for the environment and animal safety and
unethical practices has made consumers more aware of the origins of their food and led to growing
demand for healthy nutritive rich cereal based meals.
The Processed food Industry in India and Consumers food choice
Indian processed food industry has been divided into two main segments-regional Indian Processed
food and the MNC Processed food. The entry of multinational food giants such as Kellogg’s,
Quaker etc have brought a concept of Cornflakes, bread and Oats which have been launched into the
Indian markets as "Processed Food". In the society with food combining lifestyle, trend for both
spouses working and healthy food concept has emerged with Indian economy and culture going
global since last decade of twentieth century. Over the years global food giants have been able to
construct a huge consumer base in urban India. In Urban India People now-a-days are cooking less
traditional food and members of the family are often eating Processed Food. More so, the frequency
of eating processed food has been rising with relative importance of convenience, time saving and a
relative decline in traditional food and eating habits. This trend is more visible in young consumer.
Consumers are switching towards modern eating habits. The promotion strategies of the companies
are in-fact targeting children, youngsters and small families in urban areas. The local brands
developed in India are also gaining a lot of ground such as. Some of the major homegrown
processed food brands who have successfully adopted western processed food model in Indian
markets.
Our Traditional Food contains fried Pranthas fat rich milk etc and it has lead to increase in obesity
and related problems. Obesity has reached epidemic proportions globally, with more than 1 billion
people overweight and at least three million of them clinically obese and is a major contributor to
the global burden of chronic disease and disability. Obesity and overweight pose a major risk for
serious diet-related chronic diseases, including type 2 diabetes, cardiovascular disease, hypertension
International Journal of Management Research & Trends
Volume 4, Issue 1, 2013
ISSN: 0976-9781
©Kaur & Singh
and stroke, and certain forms of cancer. According to the WHO, US have the world's highest
obesity rate, with one third of the population of over teen years highly obese, followed by Saudi
Arabia and South Africa. Growing concerns over unhealthy food, fat content, exotic processing has
widely addressed significance of food which is produced according to a set of principles and
standards concerning food safety and quality.
To counter the rising obesity and related health problems corporates have shifted their thrust to
making and marketing cereal based processed food like brown bread, oats and cornflakes which are
rich in fiber content and nutrition.
Recent food scares, as well as concern for the environment and animal safety and unethical
practices has made consumers more aware of the healthy nutritive value of their food and led to
growing demand for processed but additive-free food.
Undoubtedly the Processed food industry in India has been very successful in promoting processed
food culture in India, more precisely in urban India. According to the players in the food industry
"The Processed food industry is the fastest growing industry in India" and will be the world's largest
food factory in the times to come.
The choice of food we eat is an important decision. Studies show (Jenkins et al.1982, Lily berg et al
1999) that unhealthy food low in nutritive value but high in calories affects the blood glucose
response in the measuring meal, and also meals throughout the day.
Studies show, that food habits actually change surprisingly quickly and that these changes are
driven primarily by something as mundane as rising incomes. Overall this is less important as a
cause of change because people remain faithful to cultural notions of what food is. However with
rising incomes, what is considered good food comes to accommodate greater diversity.
That changing food consumption is closely connected to opportunity rather than dietary
programming is seen from what has been witnessed elsewhere in the world. Take Japan for example
between 1960 and 1990 the nation’s GDP per capita witnessed spectacular growth, rising from
US$477 to US $24215.Despite this vastly increased wealth , the actual amount of food consumed ,
measured in grams, hardly rose during this time. However, except for a consistent level of fruit and
vegetables consumption, which accounts for a third of Japanese consumption, the nature of what
was eaten changed dramatically.
The food habits are changing in urban India might not be all that surprising what comes as more of
a surprise to people is that the changes in rural India have actually been more dramatic. In 1970
cereals accounted for more than half of all food expenditure. By 1990 this had dropped to a little
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over third. Protein consumption, including meat, poultry, diary and fish, rose by half. Just as in
urban India, vegetables and fruit consumption also rose by more than a third. The rate of change is
gathering pace. In just six years cereals consumption dropped from 50 per cent to 37 per cent, while
protein consumption rose from 16 per cent to 21 per cent. We can expect this trend to continue
urban India. In urban India, during the past twenty years, poultry has moved from being an
expensive luxury food to a meat more commonly consumed by the middle classes, as in witnessed
by the mushrooming of tandoori chicken outlets across much of the country.
Price sensitivity towards the cereal process revealed that if price increase then the customer will
either go to other shop or will postpone the purchase or will buy other brand but will not switch to
traditional foods. Though people spend around Rs 2000 on cereal process food, and at the most
around Rs 2000-Rs 4000 cereal process food but if the prices go higher they will not spend more
than Rs 4000 cereal process food.
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