ELIJAH INSTITUTE OF MANAGEMENT STUDIES

(Affiliated to University of Calicut)

CERTIFICATE FROM THE COLLEGE

This is to certify that the project report entitled “A STUDY ON THE

FACTORS INFLUENCING BUYING DECISIONS OF NON-DURABLE

GOODS”–with special to reference RANI PRIVATE LIMITED, Vadakara,

submitted in partial fulfillment of the requirement for the award of degree of

Master of Business Administration of University of Calicut was carried out by

Mr. SHAHID KV.

Dr.C.T.PAUL

Principal

i

CERTIFICATE FROM THE GUIDE

(Affiliated to University of Calicut)

This is to certify that the project report entitled “A STUDY ON THE FACTORS

INFLUENCING BUYING DECISIONS OF NON-DURABLE GOODS”–with

special to reference RANI PRIVATE LIMITED, Vadakara submitted in

partial fulfillment of the requirement for the award of degree of Master of

Business Administration of University of Calicut was carried out by Mr.SHAHID

KV under my guidance.

Mrs. JYOTHIS RACHEL, MBA

(Faculty

Guide)

ii

DECLARATION

I, Shahid kv declare that the project entitled “A Study on the Factors

influencing buying decision of non-durbale goods” with special reference to

Rani Private Limited submitted to Calicut University in partial fulfillment of the

requirement for the award of the degree of master of business administration is a

record of original project work done by me during my period of study in Elijah

Institute of Management Studies under the able guidance of Mrs. Jyothis

Rachel. I further declare that this project report has not been submitted to any

other university/institution/board for award of any degree/diploma

Place: Trichur SHAHID KV

Date:

ACKNOWLEDGEMENT

iii

First and foremost let me sincerely thank ALMIGHTY for the great opportunity and

blessings that he has showered up on me for the successful and timely completion of my

project work.

I extent my sincere gratitude to Dr. C.T. Paul, Principal, Elijah Institute of studies and

Dr. Sandhya.G.nair, Head of the department of management studies, for their kind

support and guidance for making my project great success.

I very great fully wish to forward due respect and thanks to my internal faculty guide

Mrs. Jyothis Rachel, able guide for the project, for the continuous, creative, valuable

and informative support extended to me, without which the project would not have been

efficiently completed.

I render my whole hearted thanks to all the other respected faculties of the management

department, librarian, lab technician and all other office staff for their assistance and

co-operation given to me in regard to this work.

I am extremely indebted to the management of Rani Private Limited , Vadakara and

Mr.Vivek, General Manager, who gave me the privilege to carry out my project in their

distinguished institution.

I thank my parents and all other family members for their valuable and inseparable

support in completion of this project.

Once again I take this opportunity to convey my sincere thanks to each and every

person who helped me directly and indirectly in the successful completion of this project.

SHAHID KV

TABLE OF CONTENTS

CHAPTERS CONTENTS . PAGE NO

iv

CHAPTER 1

(1.1) INTRODUCTION(1.2) RESEARCH PROBLEM(1.3) SIGNIFICANCE OF THE STUDY(1.4) SCOPE OF THE STUDY(1.5) RESEARCH OBJECTIVES(1.6) RESEARCH HYPOTHESIS(1.7) RESEARCH METHODOLOGY

1223445

CHAPTER 2 LITERATURE REVIEW 8

CHAPTER 3(3.1) INDUSTRY PROFILE(3.2) COMPANY PROFILE(3.3) DEPATMENT PROFILE(3.4) PRODUCT PROFILE

37535762

CHAPTER 4 (4.1) DESCRIPTIVE STATISTICS(4.2) INFERENTIAL STATISTICS

6792

CHAPTER 5(5.1) SUMMARY(5.2) FINDINGS(5.3) SUGGESTIONS(5.4) LIMITATIONS OF THE STUDY(5.5) CONCLUSION(5.6) SCOPE FOR FURTHER RESEARCH

979899100101102

BIBLIOGRAPHY XI

LIST OF TABLES

v

Sl No. TABLES PAGE.NO

4.1 Age group of the respondents 68

4.2 Customer awareness about Rani Food Products 69

4.3 Source of customer awareness about Rani Food Products 70

4.4 Usage of Rani Food Products 71

4.5 Product usage duration of Rani Private Limited 72

4.6 Influence of advertisement to purchase Rani Food Products 73

4.7 Influence of price on customer’s purchase decision 74

4.8 Influence of quality on customer’s purchase decision. 75

4.9 Influence of product availability on customer purchase decision. 76

4.10 Influence of company brand name on customer purchase decision. 77

4.11 Influence of previous experience on customer purchase decision. 78

4.12 Influence of advertisements on customer’s purchase decision 79

4.13 Influence of family/friends opinion on customer’s purchase decision. 80

4.14 Influence of sales promotional activities customer’s purchase decision. 81

4.15 Customer’s satisfactory level on Price of Rani Food Products 82

4.16 Customer’s satisfactory level on quality of Rani Food Products 83

4.17 Customer’s satisfactory level on brand name ‘Rani Food Products 84

4.18 Customer’s satisfactory level on the availability of Rani Food Products 85

4.19 Customer’s satisfactory level on the flavors of Rani Food Products 86

4.20 Customer’s satisfactory level on the aroma of Rani Food Products 87

4.21 Customer’s satisfactory level on the packaging of Rani Food Products 88

4.22 Factors which customers experience on Rani Food Products 89

4.23 Satisfaction level of customers on Rani Food Products 90

4.24 Family/friends influence on customer decision to buy Rani Food

Products

91

vi

LIST OF CHARTS

CHART No.

CHARTS

PAGE.NO4.1 Age group of the respondents 68

4.2 Customer awareness about Rani Food Products 69

4.3 Source of customer awareness about Rani Food Products 70

4.4 Usage of Rani Food Products 71

4.5 Customer’s product usage duration of Rani Private Ltd 72

4.6 Influence of advertisement to purchase Rani Food Products 73

4.7 Influence of price customer’s purchase decision 74

4.8 Influence of quality of the Products on customer’s purchase decision. 75

4.9 Influence of product availability customer purchase decision. 76

4.10 Influence of company brand name on customer purchase decision. 77

4.11 Influence of previous experience on customer purchase decision. 78

4.12 Influence of advertisements on customer’s purchase decision 79

4.13 Influence of family/friends opinion on customer’s purchase decision. 80

vii

4.14 Influence of sales promotional activities customer’s purchase decision. 81

4.15 Customer’s satisfactory level on Price of Rani Food Products 82

4.16 Customer’s satisfactory level on quality of Rani Food Products 83

4.17 Customer’s satisfactory level on brand name ‘Rani Food Products 84

4.18 Customer’s satisfactory level on the availability of Rani Food

Products

85

4.19 Customer’s satisfactory level on the flavors of Rani Food Products 86

4.20 Customer’s satisfactory level on the aroma of Rani Food Products 87

4.21 Customer’s satisfactory level on the packaging of Rani Food Products 88

4.22 Factors which customers experience on Rani Food Products 89

4.23 Satisfaction level of customers on Rani Food Products 90

4.24 Family/friends influence on customer decision to buy Rani Food

Products

91

LIST OF FIGURES

SL NO PARTICULARS PAGE NO

1 1.11.1.2.1 Response Hierarchy Model 31

viii

2 1.11.1.3.1 The Black Box Model 31

3 2.11.2.1.1 The Howard Sheth Model 32

4 2.11.3.1 Product Innovation model 35

5 3.3.1.1.1 Production Department 58

6 3.3.1.2.1.1 Human Resource Department 59

7 3.3.1.3.1 Marketing Department 60

8 3.3.1.3.1.1 Distribution Channel 61

LIST OF APPENDIX

SL.NO. INDEX PAGE NO.

1. QUESTIONNAIRE XIII

ABSTRACT

The buying decision of a buyer is influenced by an economic decision and expectation.

He expects best performance maximum durability and more dependability from a product

or service. The decision making is a process whereby a buyer decides to purchase a

particular product out of various available alternatives depending upon his ability to

ix

purchase and willingness to purchase. This process of selection and final selection is

known as buying decision making.

Rani Private Limited is a company in Vadakara, Kerala, which dealing with so many

products like pickles, masala powder, spice powders etc. Mr. V.R Krishnan, a commerce

lecturer by profession, gave up his job to start Rani Private Limited 30 years back. Their

success in the local sector gave the company the impetus to export their products to the

Middle East and European nations by 1989. In India Company’s products are available

all over Kerala and the major cities in India. The brand “Rani” is accepted as a mark of

quality among the consumers.

From the whole population, 100 samples were selected for data collection. All the

necessary data was collected from the selected sample using questionnaires, interviews

and schedules. The procedure adopted in the present study is simple random sampling. In

this all units in the population has an equal chance of inclusion in the sample.

From the study, it is found that so many factors which influence the consumer buying

decision of non durable goods. They include price, quality, availability of the product,

brand name, advertisement of the company. From the survey it is also found that the

previous experience on the product will influence the buying decision. Influence of

company’s sales promotional activities has little influence on buying decision of

consumer while they purchase non durable goods.

BIBLIOGRAPHY

BOOKS.

1. Bhatt Monica and Jain .P.C “Consumer Behaviour in Indian Context” First

Edition 2003, S. Chand & Company Ltd., 7361, Ram Nagar,

x

2. Kotler Philip “Marketing Management” Eleventh Edition, Person Education

( Singapore) Pte. Ltd., Indian Branch, 482 F.L.E. Pataparganj, Delhi

3. Gautam Neeran and Jain Kokil “Consumer Behavior”, Wisdom Publication,

Delhi

WEBSITE

www.ranifoodproducts.com/

http://en.wikipedia.org/wiki/Food_industry

http://www.collegegrad.com/industries/manuf05.shtml\

http://en.wikipedia.org/wiki/marketing/consumer behavior

QUESTIONNAIRE

A study on Factors Influencing Buying Behavior of Non-durable goods

Respected madam/sir,

As a part of my project I would like to gather some information

from you which will help me in an in depth study of project. The information

xi

provided by you will be kept confidential and will be used for academic purpose

only. I would be obliged if you co-operate with me in filling the questionnaire.

1. NAME:

AGE : Below 20 20-30 30-40 above 40

Sex : Male Female

2. a) Are you aware of the Rani Food Products?

Yes □ No □

b) If yes, how do you come to know about this product?

Advertisement □ Friends □ retail shop

Sales executives □ Any other source (Specify) ……………

3. Have you used Rani Food Products?

Yes □ No □

4. If you are a customer of Rani Food products, how long have you been buying it?

Below 6 months □ 0-1 year □ 1-2 year □ Above 2 year □

5. Do you think the advertisement of Rani Food Products has a major influence in your

buying decision?

Strongly agree Agree Average

Disagree Strongly disagree

6. Please rate the following factors which influence your purchase decision.

(Strongly agree-5, Agree-4, Neutral-3, Disagree-2, Strongly Disgree-1)

No Factors Rate

i. Price of the product

ii. Quality of the product

xii

iii. Availability of the product

iv. Brand name of the company

v. Previous Experience

vi. Advertisements

vii. Family/friends opinion

viii. Sales promotional activities

7. Please rate your satisfactory level of Rani Food Products based on the following

features. (Highly satisfied-5, Satisfied- 4, Normal-3, Poor- 2, Very poor- 1]

No Factors Rate

i. Price

ii. High quality

iii. Brand name

iv. Availability of the products

v. Flavor of the products

vi. Aroma of the products

vii. Packaging

8. Rank the following factors based on your experience on Rani Food Products?

No Factors Rank

1 Good quality

2 Affordable price

3 Timely availability

4 Easy applicability

5 Reliability

9. How satisfied are you with Rani Food Products compared with the others substitutes

available in the market?

Highly satisfied Satisfied Neutral

Dissatisfied Highly Dissatisfied

xiii

10. Has your friends/relatives opinions influenced you to buy Rani Food Products?

Strongly agree Agree Average

Disagree Strongly disagree

11. Any suggestions:

Thank you for your kind co-operation

xiv