International Journal of Research and Development - A Management Review (IJRDMR)
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Consumer Preference for Edible Oil in Yewalewadi of Pune Region
1
Vishal Raut, 2Shubhangi Walvekar
Associate Professor-Trinity Institute of Management & Research Pune, Maharashtra, India
Head (MBA) –Modern College of Engineering Pune, Maharashtra, India
Email: vishalraut143@rediffmail.com
Abstract:-Consumer behavior changes as the time changes.
These changes are due to advancement in technology and
new innovations. Today consumers gather more & more
information on the brands that are available in the market,
and based on the information & knowledge they rank their
preferences. This study was carried out in the semi urban
area: Yewalewadi, Pune region, to know the consumer
preference over the brand/unbranded edible oil. The study
was elongated to reveal whether particular age group
consumers prefer branded edible oils or not, along with the
attributes that play important role in motivating the
consumer. For this study total 104 Ss were surveyed. These
observations were analyzed with the help of Chi-square
test & with simple percentage analysis. Among the sample
it was observed that age group 26-35yrs prefer branded
products. Health was considered to be an important
parameter for the selection of Edible Oils. Finally it was
concluded that, consumers prefer branded products over
unbranded products of Edible Oils. Healthy Edible Oils
are on priority for selection on any brand of Edible oil than
any other attribute. This region has major satisfied
customers with reference to the brand they presently use.
Keywords: Branded Edible Oil, Preferences, Consumer
Satisfaction.
I. INTRODUCTION:
To understand consumers and their actions in different
environment becomes a key aspect of learning in order
to predict their future behavior. The Behavioral study
starts from knowledge in process of sensory responses.
As per Feldman (1997)[1],the intensity of a stimulus
influences our sensory responses. Stimuli vary in both
type and intensity. Different types of stimuli activate
different sense organs. For instance, we can differentiate
light stimuli, which activate our sense of sight and allow
us to see the colors of a tree in autumn, from sound
stimuli, which, through our sense of hearing, permit us
to hear the sounds of an orchestra. Each sort of stimulus
that is capable of activating a sense organ can also be
considered in terms of its strength, or intensity.
Once we understand the stimuli we start understanding
motivational features of individual, which allow us to
reveal and alter consumer behavior. Without
understanding consumer it becomes a difficult to put
forward an actual acceptable products to them, it is
similar like aiming without a target. On this basis
different advertisements and promotional activities were
proposed by the firms inorder to catch the attention of
the consumers. And then started the process of brand
building. The main sub drivers of brand equity are
customer brand awareness, customer attitude towards
brand and customer perception towards brand ethics.
Brand help in building emotional relationships with
customers, which in turn brings tangible returns for the
organization in terms of customer loyalty.
Brand awareness is the consumer’s ability to identify the
brand and can be measured with the help of brand recall
and brand recognition. Kathuria & Jit (2009)[2] quoted
in their study that, relationship between a brand’s share
of uses and its loyal franchise, it was found that brands
with a larger share of users have proportionately larger
factions of loyal buyers. Another study reviewed that the
weaker brand gains more from price promotions. They
also found that loyal customers were less price sensitive
than non-loyal ones in choice decision, but more price
sensitive in the quantity decision.
Today’s consumer get exposure to various brands,
however consumer has to select some of the product in
order to fulfil basic need. The selection procedure
among these varieties of brands is through complex
process. As Dasgupta & Pareek (2010)[3], mention in
their study, “A customer is exposed to more than 1500
advertising messages a day, encounters more than 200
edible oils, 150 soaps and 90 toothpastes on the shelves
of grocery stores to choose from thus making them more
confuse. Knowing who is your customer and who is
involved in making decision, it becomes important to
evaluate the factors that affect consumers. Sheena
(2009)[4] commented in her study”, factors affecting
extension
evaluation,
consumer
characteristics
moderating the effects of the basic model are
Motivation, Consumer Expertise, Positive Consumer
Mood, Implicit Personality Theory and Innovativeness.
Juyal & Singh (2009)[5] in their study reported
diminishing role distinction between men and women,
resulting into more complex and vague roles. Among the
family members, Green and Cunningham (1975)[6],
reveal that more women are performing traditionally
male dominated tasks and vice versa, and with the
increased anatomy, the wife is able to have more
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International Journal of Research and Development - A Management Review (IJRDMR)
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influence in the decisions within the families. One of
those areas affected by diminishing sex role distinction
is in consumption aspects of family decision-making.
Their findings showed that husbands of liberal wives
make relatively few decisions compared to the husbands
of moderate and conservative wives. Decision related to
groceries were found to be wife dominated in the three
groups, and decisions related to life insurance were
husband dominated. Companies should not stop at the
stage where the brand in well know or well among the
competitions in market else they lead to fall short over
the performance. The only difference that uplift would
be through product satisfaction.
Briarley[7], Services create a hindrance on building
brand images based on the customer dissatisfaction due
to which retaining consumer is difficult. In general, it
becomes important for companies to retain consumers
with the help of customer satisfaction index. However,
technology advancement have created a room in
consumer satisfaction and companies try to serve their
customers at customers’ convenient places and time.
Various options are created for a customer convenience,
all lead to customer satisfaction. Online shoppers are
more satisfied but out the room for improvement,
especially in communication about delivery and returns.
These customers have more control. In U.S. 63% of
online shoppers look at the return policy before making
a purchase[8].
II. OBJECTIVES OF THE STUDY:
1.
To identify consumer preference for branded and
unbranded products of edible oils.
2.
To reveal most favorable attribute of edible oils,
responsible for preference.
3.
To know whether consumers are satisfied, with the
Edible Oil they use, or not.
Hypotheses:
H1. Consumers prefer branded products rather than
unbranded products of Edible Oils.
H2. Healthiness of edible oils is significantly more
responsible for preference than other
characteristics.
H3. Repetition of brand depends on satisfaction of
customers.
Working Definition:
Analyze: To examine edible oil consumers in detail, in
order to understand or explain their perception.
Perception: The ability to understand and make good
judgments about edible oil products.
Attribute: To believe that consumer preference of edible
oil products is the result of a particular feature, events,
experience or referrals.
Health Edible Oil: Less absorbed, and Cholesterol Free
Oil, for health hearts.
(Source: Macmillan English Dictionary, International
Student Edition, Mcmillan Publishers 2002.)
III. LITERATURE REVIEW:
Indian markets from low-involvement to highinvolvement product categories have been experiencing
sweeping changes in the past decade. Changing
lifestyles, fragmented market segments and consumer
preferences, and intense competition from the brands of
multinational corporations (MNCs) have made branding
strategies a prerequisite for marketing success. India has
been going through radical changes in the marketing
arena in the last decade. Globalization in terms of
multinational corporation (MNC) brands entering Indian
markets, the emergence of young professionals in urban
areas, the opening up of luxury and leisure markets, the
impact of mass media and the influence of
Westernization are some of the crucial aspects which
have forced Indian marketers to adopt branding
strategies. These strategies have been formulated against
the backdrop of an Indian culture which is strongly
entrenched in the consumer psyche, and amidst changes
in the social environment. These changes can be seen in
overall consumer products, Rajaveni & Ramasamy
(2012)[9], analyzed the trend in edible oil consumption
and also attempt has been made by the researcher to
assess the consumer behavior on consumption of edible
oils from various income groups. In India, most
vegetable oil is purchased by household or industrial
buyers (food processors, restaurants and hotels) for
frying or baking needs and is sold as loose oil or
vanaspati (partially hydrogenated vegetable oil). Only a
small percentage of edible oils are sold in branded form
at the retail level. They studied, what kind of edible oil
people consume, since there are varieties of edible oil
like Palm oil, soya bean oil, mustard oil, groundnut oil,
rice barn, and cotton seed oil in the market.
It was considered that branded and quality product were
preferred. However some of the motivation functions
were quality, health and package. Pathak & Tripathi
(2009)[10] found Indian customers are more sensitive to
quality, customer service and status. They are ready to
pay, sometimes, astronomical sums, provided their
needs are satisfied. They are basically looking for an
experience which is more of cognitive than physical.
Other factors in preference for Edible Oil was
highlighted by Kokatnur (2009) )[11], Parasuraman,
studies on quality of the product plays a major role in
the consumers preference of the product, their
satisfaction and repurchase intension. Maintaining
consistent quality can enhance the market share of
private labels. Another factor influencing consumer
perception of private brands is the package. The taste
test study revealed that consumers rate private labels
higher than manufacturers brand.
Vyas, Imran & Jay (2013)[12], proposed that Health
factor plays a predominant role in selecting the brands
among selected respondents. As most of the respondents
change their oil for better health, very strong brand
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International Journal of Research and Development - A Management Review (IJRDMR)
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loyalty is not displayed for oil consumption. Syed Hasan
and Muhammad Khan (2009)[13], study identified that
packaging characteristics are significant variables for
consumer brand preference in edible oils. The study
indicates that packaging characteristics has association
with consumer brand preference in edible oils.
Prema (2013)[14], in the study compared sunflower and
groundnut oil, to know which is more popular, preferred
and purchased by the consumer. The factors influencing
the consumers for purchasing branded oil were quality,
healthy, tasty, availability and fat content. Today
consumer market is flooded with various brands of
sunflower and groundnut oil. Each branded sunflower
and groundnut oil stands out distinctly when grouped
with other branded edible oil. Consumers have specific
preference or choice and they analyze the price, quality,
packaging aspects etc. before they buy the product and
hence, it is up to the different brands of sunflower and
groundnut oil manufacturers to concentrate on those
aspects and workout better strategy to attract more
consumers for their brands. The chance of success of
brands having higher perceived quality are more than
brands having lesser perceived quality. Brands enjoying
greater perception of quality shall bestow higher risk
relief to consumers than brands having lower standing.
Keller and Asker (1992)[15] found higher quality of the
brand will undoubtedly lead to its success.
Today, Indian Customer is demanding more value for
the price he/she pays. Social structures like family, role
models and peer groups are under pressure largely
because of the change created by media, technology and
competition. These change drivers are today impacting
the customer’s awareness, values, social structures and
even the individual customer personality.
The rural market does not differ on a larger extent which
was shown by Sen, Nandita (2012)[16], in a study of
newly launched edible oil by Amul, entering into edible
oil segment. Based on a sample of 38 villages near
Anand(Gujarat) where consumption patterns of 200
randomly surveyed. It was concluded that there is less
awareness among consumers. Customers were ready to
try new products, however, more focus should be on
right pricing.
Value added product or services have always an upper
edge, Jaiswal, Sahu & Matharu (2010)[17] in their
research on restaurant services found consumers prefer
those restaurants that provide maximum degree of
satisfaction. As per Bhat & Reddy(2001)[18], brand
affects
positively
on
purchase
intention.
Sallylinkenauger (2012)[19] brands built images and
images built brands. People who believed that a
professional’s skills had rubbed off on a piece of
equipment performed better while using it. Moreover, as
Jyothsna Priyadarsini & Goodwin(2009)[20], mentioned
with increasing levels of awareness, the customers are
educating themselves before they go for the purchase.
Additionally, for a consumer the entire story remains
same as a whole market. Consumers are more consent
about the brand not only in urban but also in rural area
was found in the studies carried out by Jain &
Meenakshi Sharma (2012)[21], Most of the people both
from illiterate & literate groups prefer branded products
with the belief that quality is assured as the
manufacturers are reputed companies. People are not
worried about the price of the product. They are
showing willingness to spend higher price when they
realize that they can afford to spend. Since the usage of
branded products of reputed companies will elevate their
status as well as stature in that village. This change in
the attitude to spend more on the highly priced branded
products, suggests that there is an ample scope for such
products to capture the markets in these areas by
increasing supply of these products. The marketing
agencies are advised to conduct health awareness
programs by educating the people about the need to use
the health care products to arrest tooth decay, hair fall,
dry skin, etc. These products can be made more popular
and acceptable among the rural people. Noor Firdoos
Jahan and Lalitha Ramakrishnan (2012)[22], examined
brand preference in rural areas and studied the
preference of the customers in branded products of Fast
Moving Consumer Good (FGCG). India's rural markets
have seen a lot of activity in the last few years. Since
penetration levels are pretty high in most urban areas,
future growth can come only from deeper rural
penetration and higher consumption. As rural income
increases and distribution network improves (in line
with road development projects), the penetration levels
are set to increase. At present, urban India accounts for
66% of total FMCG consumption, with rural India
accounts for the remaining 34%. However, rural India
accounts for more than 40% of the consumption in
major FMCG categories such as personal care, fabric
care and hot beverages. Brand preference is one of the
most emerging areas in marketing everywhere so as the
rural areas in Mandya district in Karnataka. Their study
provided bunch of knowledge about demand of different
FMCG products in rural areas as well it also provides
detail knowledge about the consumer preference
towards different FMCG products.
IV. LIMITATION OF THE STUDY:
Pune region is a vast region; our study is restricted to the
following:
1.
Few places in the region have been covered.
2.
The time period of the study is from May-June of
year 2014.
Analysis of the finding:
1.
Whether Consumer prefer branded product?
Category
Yes
No
Total
26-35 Years
48
9
57
36-45 years
16
8
24
Above 45 years 15
8
23
Total
79
25
104
TABLE 1: Brand Preference Observed Values
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International Journal of Research and Development - A Management Review (IJRDMR)
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Brand Preference
26-35 years
36-45 years
Above 45 years
19%
20%
61%
FIGURE 1: Brand Preference in Percentage
Sr. No.
1
2
3
4
5
6
O
48
9
16
8
15
8
E
43
14
18
6
17
6
Total
O-E
4.70192
-4.7019
-2.2308
2.23077
-2.4712
2.47115
(O-E)2/E
0.51
1.61
0.27
0.86
0.35
1.10
4.71
6
9
6.92
2.076923077
0.62
7
12 12.81
-0.807692308
0.05
8
6
5.19
0.807692308
0.13
Total
6.56
TABLE 4: Calculated Chi-Square Value for Brand
Preference Categories
When the data were treated by chi-square test the
difference was found to be significant (X2=6.56, df=3,
þ<0.05). Data supports the hypothesis on Healthiness of
edible oils is significantly more responsible for
preference than other characteristics.
3.
Satisfaction Ratio with the existing Brands of
Edible Oil.
Satisfaction Ration with the existing Brand
Yes
100
No
4
TABLE 5: Satisfaction Ratio-Existing Brand
Satisfaction Ratio
No
4%
TABLE 2: Calculated Chi-Square Value for Brand
Preference
Yes
96%
X2=4.71, df=2, þ<0.05
Computed value of X2is 4.71, which is for 2 df is nonsignificant (þ<0.05). Result supports the hypothesis,
today’s consumers prefer branded products rather than
unbranded products of Edible Oils.
2.
Consumer Preference for Healthy Edible Oils.
Category
Yes
No
Total
Health
35
7
42
Experience
12
8
20
Availability 15
9
24
Taste
12
6
18
Total
74
30
104
TABLE 3: Brand Preference Categories
Taste
13%
Health
67%
Experien
ce
10%
Sr.
No.
1
2
3
4
5
With the above reference data, it is observed that 96% of
the consumers preferred to use the same brand and are
satisfied with their existing brand, where as other 4%
consumers wish to change the brands.
CONCLUSION:
Consumer Preferences Categories
Availabili
ty
10%
FIGURE 3: Consumer Satisfaction Ratio for Existing
Brand
The Study had revealed that age group 26-35yrs
prefered branded products. However, Health was
considered to be an important parameter for the
selection of Edible Oils. Finally it was concluded that,
consumers prefer branded products over unbranded
products of Edible Oils. Healthy Edible Oils are on
priority for selection on any brand of Edible oil than any
other attribute. The region has satisfied customers with
reference to the brand they presently use. For marketers
it is necessary to create a brand that focuses on healthy
life style. Consumers are on the verge of comparing
different brands available in the market and finalizing
the healthy products with economical prices.
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O
E
O-E (O-E)2/E
35
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