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British Food JournalDoes the consumers’ buying behavior differ for vegetarian and non-vegetarian food products? –evidences from an emerging marketNiraj Kumar Sanjeev Kapoor
Article information:To cite this document:Niraj Kumar Sanjeev Kapoor , (2015),"Does the consumers’ buying behavior differ for vegetarian and non-vegetarian foodproducts? – evidences from an emerging market", British Food Journal, Vol. 117 Iss 8 pp. -Permanent link to this document:http://dx.doi.org/10.1108/BFJ-09-2014-0324
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Does the consumers’ buying behavior differ for vegetarian and non-vegetarian food
products? – evidences from an emerging market
Introduction
What consumers buy, how much, when, in what form and from where: these are some of
the questions, answers to which every marketer is curious to know. Knowing consumers’
wishes is an important condition for making an efficient sales concept (Cerjak et al., 2010).
This assumes paramount importance in an evolving business like food retailing where
there has been large scale transformation across the globe in general and in Asia in
particular since the last one decade (Timmers, 2005). Throughout the world, major shifts in
dietary patterns are occurring, even in the consumption of basic staples towards more
diversified diet (Kearney, 2010). With high product involvement (as food products are
basic necessities), purchase involvement of the consumers for these products is also
increasing. The buying process of food is no more characterized by impulse buying as in
the past (Kumar and Kapoor, 2014) and has undergone change in the last few years (Boon
and Kurtz, 1998; Ali et al., 2010; NABARD, 2011; Domdaran and Kulkarni, 2012). A shift in
food consumption patterns towards more diversified and high value products like milk and
milk products, fruits and vegetables and meat is being experienced across the world
(Huang and Bouis, 1996; Meenakshi, 1996; D’Monte, 2011).
In India, though cereal continues to be an important constituent of a household food
basket, the share of high value food such as vegetables, fruits, milk meat, fish and eggs is
increasing (Mittal, 2006). There has been considerable increase in consumption of meat
and other protein-rich foods like fish, milk, fruits and vegetables in developing countries
(Kearney, 2010). This shift in dietary pattern is a consistent change associated with
economic growth the world over (Huang and Bouis, 1996; Meenakshi, 1996). During the
1990s and the 2000s the output per capita of vegetables, fruits, milk, fish, meat and
poultry increased in India, though not as much as the rise in per capita income. So, there
has been a widening demand-supply gap in the country (Joseph, 2013). Food consumption
and purchase in India has changed because of change in food preferences, socio-
demographic factors, increasing awareness about health benefits of fruits and vegetables,
and the food industry’s marketing policies (Sharma and Jain, 2011). It has also been
reported that the growth of sales of fruits and vegetables by organized retails in Asian
countries including India lags behind that of processed food as most of the households
continue to buy fruits and vegetables from traditional retailers (Chen et al., 2005). Most of
the urban consumers (80 – 90%) in Asia use wet markets regularly (AC Neilsen, 2003).
Unorganised retails (like, neighborhood shops, hawkers, pushcart sellers, roadside shops,
kirana shops, daily or weekly evening markets) are the major sources of fresh fruits and
vegetables in India (Ali, et. al., 2010; Bulsara and Matharu, 2010; NABARD, 2011).
Researchers on food choices have considered product attributes as one of the perspective
to increase the understanding of consumers (Assael, 1998). Food can be classified into
search, experience, and credence goods according to its level of quality that can be
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discovered (Nelson, 1970; Darby and Karni, 1973; Ford et al., 1988). The peculiarities of
products are among the most critical factors determining the consumers’ purchase
decision. In recent decades, efforts to understand the relative importance of various
product attributes and their influence on the overall buying behavior of consumers have
been considerably explored (Kiesel and Villas Boas, 2007). Studies have found that
customers attach varying importance to different product attributes while purchasing
fruits and vegetables (Ernst et al., 2006; Mahaliyanaarachchi, 2007; Dimech et al., 2011)
and their attitude and perception have been influenced by a number of personal
characteristics of customers (Fearne and Lavelle, 1996). Cognitive and emotional elements
have been found to have more influence on consumers’ purchase decisions for fruits and
vegetables than advertising and other campaigns (Nicolae and Corina, 2011). Indian
customers prefer buying food products on a regular basis and consider branded products
as expensive (Mukherjee et al., 2011). Distance, convenience merchandise and loyalty are
rated as very important factors in deciding the outlet for the purchase (Sinha et al., 2002).
Food purchasing behavior of consumers in developing economies such as India has
significantly changed due to an increase in per capita disposable income, global
interaction, information and communication technologies, urbanization, education,
change in life style, family structure, and health awareness (KPMG, 2005; Pingali, 2006;
Kaur and Singh, 2007; Ali, et al., 2010). The agri-food market system has become more
organized, customer focused and, in fact, is facilitating the growth of organized food
retailing (Chen et al. 2005). Many studies have predicted that modern retail will continue
to witness double-digit growth in India (McKinsey & Company, 2007; Kearny, 2011;
Mukherjee et al. 2011; NABARD 2011). It has been predicted that the share of organized
retailing in the food and grocery segment could grow up to 15-20 percent (Reardon and
Gulati, 2008). A report of Boston Consulting Group has estimated that in India, the
domestic food market is likely to triple to USD 900 billion by 2020 (Jagran Post, 2011).
According to a study the annual spending of each middle class household on fast food
restaurants in India’s tier-II & tier-III cities has increased by 108% in the last two years
(ASSOCHAM, 2014). Though retailing of fresh fruits, vegetables, and grocery is considered
a very low margin business, the huge market potential in India has attracted India business
houses to make their entry through different retail formats (Sengupta, 2008). Indian-
owned retail outlets are already active and aggressive in the meat, fish, fruit and vegetable
sector of the food market (Vaish, 2007; Sruthijith and Chakravarty, 2010; Ali et al., 2010;
Mamgain, 2011). Unlike in the past, the debate today is no longer whether food and
grocery retail in India would grow but rather how fast it can grow and what challenges
need to be overcome (Gupta, 2007). Although food retail growth has by and large occurred
in Metropolitan (with a population of more than 5 million) and bigger cities (with a
population of more than one million) in India, the focus has now shifted to lesser known
smaller cities. With increasing spending power of the consumers, the retail business in the
smaller cities will increase by 50 to 60 percent due to easy and relatively cheap availability
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of land and increasing demand among consumers (Damodaran, 2009; Rastogi, 2010).
According to a study by Ginesys, industrial townships and tier II cities are emerging as the
new retail centres (Economic Times, 2013) and these emerging markets hold the maximum
business potential for food retailers. Realizing this immense potential, many organized
retail corporations are aggressively venturing into the market and targeting middle and
smaller cities, where the potential is still untapped.
Food preferences and behavior are likely to vary from culture to culture (Falk, et al., 2001;
Akamatsu et. al., 2005; Coveney, 2006) and there is need to identify these differences
(Chang, 2014). Therefore, there is dire need to understand the true drivers of shopping
behavior of Indian customers for food products as they get fairly involved in store choice
decision (Sinha et al., 2002). Simultaneously, it is important for a store to understand the
consumers’ behavior for developing the marketing strategy (Sinha, 2003). It is necessary to
understand food purchasing behavior of consumers to attract them to the organized retail
outlets. Most of the organized retail stores are involved in selling both vegetarian and non-
vegetarian food products. Retailers are interested to know whether the consumers’ buying
process for these two categories of food products is more or less the same or different in
nature. This would help them to customize their product specific marketing strategies as
per the customers’ preferences and requirements. Although there have been a good
number of studies to understand the Indian consumers’ behavior for individual categories
of food i.e., vegetarian or non-vegetarian products (Srinivasan and Elangovan, 2000; Raju
and Suryanarayana, 2005; Upadhyay and Pathania, 2013, Devi Prasad and Madhavi, 2014,
Kumar and Kapoor, 2014), there is hardly any research in which a comparative study has
been made to study the consumers behavior for vegetarian and non-vegetarian food
products. These two different food product categories are of varying importance for the
consumers in India. While vegetables are one of the regular and essential constituents of
food, consumption of non-vegetarian food is considered as ‘special food’ for most of the
consumers, and even within the category their frequency and quantity has varied (CIRAD,
2014).
An Individual’s socio-demographic characteristics can influence the perceived importance
of various food attributes (Weirenga, 1983), and his purchase behavior of health related
products (Aschemann-Witzel and hamm, 2010). Traditionally, the price of a product has
been considered as the prime factor for the consumers’ decision making process in India.
Ali et al. (2010) reported that Indian consumers are still price-conservative and adopt the
cheapest and the best while purchasing quality food products, and their income affects
their purchase behavior of food products (Upadhyay and Pathania, 2013). It would be
interesting to analyze how demographic characteristics of consumers of middle and
smaller cities influence their buying behavior for vegetarian and non-vegetarian food
products. Product attributes as perceived by consumers are critical factors in the food
choice process and are considered to be a major determinant for the success of many
product marketing strategies (Batra and Sinha, 2000; Kupiec and Revell, 2001). Fruits and
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vegetables are purchased in raw form, whereas, some sort of processing is required to
make non-vegetarian products available to the consumers. What are these attributes of
vegetarian and non-vegetarian products, which influence the consumers’ perception of
quality? Are these the same or different? How do consumers treat search, experience and
credence product attributes while making their preferences and choices for these two
different categories of the products? Answers to these questions are vital for food
companies to decide about their marketing strategies. Consumers’ selection of a store is
based on their perception and confidence in retail outlet which in turn is dependent on the
availability of quality products (Dash, et al., 1976), ambience, hygiene, and credibility (Devi
Prasad and Madhavi, 2014). The importance of a store increases for the products it offers
when quality cannot be perceived by search attributes, and when the brand loyalty of the
consumers cannot be established. These food products meet both these criteria. It is
important to know the relative role of convenience, ambience, market services, choices of
products and quality of products for the customers’ preference of organized retail for
vegetarian and non-vegetarian food products. The results would provide a clue to the
organized retailers whether to adopt store exclusiveness or not for the two categories of
the food products?
Research Purpose and Hypotheses
This paper attempts to identify and compare the factors which affect the consumers’
buying behavior of vegetarian and non-vegetarian food products in an emerging middle-
size market. The paper compares the choices of the consumers for various vegetarian and
non-vegetarian food products and their market attributes. The specific hypotheses tested
in the present research are as follows:
H1. Consumers’ buying behaviour in terms of frequency, quantity of purchase and form of
purchase is different for vegetarian and non-vegetarian products.
Based on the frequency and volume of purchase, necessary strategies can be developed
not only to make fresh products available to the consumers, but also to minimize the
wastage and inventory cost to the retailers.
H2. The demographic characteristics of consumers (gender, age, education and income)
significantly influence the buying behavior for both the categories of food products.
Understanding the demographic characteristics of consumers would help the retailers to
design promotional programs for vegetarian and non-vegetarian food products.
H3. The importance of different product attributes is expected to be similar for the
consumers while purchasing vegetarian and non-vegetarian food products.
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H4. The different market attributes are expected to play similar roles for the consumers
while purchasing vegetarian and non-vegetarian food products.
Research Methods
The consumers’ buying behavior has been captured through quantity and frequency of
purchase, form of purchase, and preferred location of store for different vegetarian and
non-vegetarian products. The factors influencing the buying behavior have been broadly
categorized under customer-related (gender, age, education, and income), product related
(quality, hygiene and price) and market-related (convenience, credit sale, vendor behavior,
availability in desired quantity and quality) behaviors. The different products and market
attributes were selected based on qualitative research. Frequency-distribution and cross-
tabulation were conducted to assess the buying behavior of the consumers. Analysis of
variance (ANOVA) was conducted to test whether socio-economic factors of consumers
are important in explaining their buying behavior of vegetarian and non-vegetarian food
products. The importance of different sets of products and market attributes was
determined using factor-analysis. For this purpose, the Principle component analysis (PCA)
was conducted using Varimax rotation with Kaiser Normalization. Factor analysis is used to
describe variability among observed, correlated variables in terms of a potentially lower
number of unobserved variables called factors. Importance of attributes can be described
in terms of assessed mean score (if rated on certain point scale, say 5 point scale). A
Varimax solution yields results which make it as easy as possible to identify each variable
with a single factor. This is the most common rotation option. However, the orthogonality
(i.e., independence) of factors is often an unrealistic assumption.
The data for this research were collected through questionnaire survey in two major cities
of the state of Odisha [1], namely Bhubaneswar and Rourkela [2]. A total of 282
households (182 households from Bhubaneswar and 100 households from Rourkela) were
selected from economically developed areas and having sufficient purchasing power for
organized retail shopping. The data were collected by interviewing the family head in the
household. The selection of items under vegetarian (fruits and vegetables) and non-
vegetarian food (fish, chicken and mutton) was based on the review of literature and on
the findings of a pilot study. The results of a small pilot study conducted on the same
sample indicated that in majority of households (54.1 percent), the housewives decide the
menu of food items. On the other hand, it was found that in 60 per cent cases, the
husband did the shopping. The analysis indicated that purchase of food products is a
family affair.
The survey questionnaire had questions representing socio-economic profile of consumers
(gender, age, monthly family income, and level of education), their buying behavior
(purchase frequency, quantity, and form of purchase) of vegetarian and non-vegetarian
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food products, and the various product (freshness, quality, and nutrition) and market
attributes (convenience, availability of assured quality, market ambience and market
services). The consumers’ perception of these attributes was taken on a Likert scale (1 =
not at all important, 2 = somewhat important, 3 = important, 4 = very important and 5 =
extremely important).
Results and Discussion
Consumers’ profile
Consumers’ profile in terms of their gender, age, education, and income, has been
presented in Table 1. A majority (more than 50 percent) of the respondents were male and
about 65 percent of the respondents belonged to the age group of 30 to 50 years. In
respect of qualification more than 90 percent hold graduation or higher degrees. About
40% of the households stated their monthly income to be between Rs. 20,000 and Rs.
40,000 (1US$ = Rs. 60) and above. This category of households is considered as middle
class in India. Fifty two percent of the sample households were from the upper middle
class having monthly income in the range of Rs. 40,000 to Rs. 70,000. The consumers’
profile indicates that the chosen sample was appropriate to understand the consumers’
behavior for buying vegetarian and non-vegetarian food products from the organized
retail.
>Table 1: Socio-economic Profile of Respondents<
Buying behavior
The purchase behavior of the consumers was assessed on the basis of the frequency of
purchase, volume of transaction and form of purchase (Table 2). The results indicate that
vegetables and fish are frequently purchased products with a mode value of 2. It indicates
that these two commodities are purchased twice or thrice in a weak. On the other hand,
fruits, chicken and meat are purchased mostly on a weekly basis. Odisha being a coastal
State, both vegetables and fish are an important constituent of the consumers’ food
basket. Consumption of fruits and vegetables is more (with an average shopping of 3.5 and
2.7 kg., respectively) as compared to that of non-vegetarian products (average transaction
quantity of about 1.00 kg.). The results present another interesting aspect that for both
the product categories, majority of the consumers are interested in seeing the products
physically before buying so that they personally examine and select the product (Tables 3).
In case of vegetarian products, consumers prefer physically verifying and selecting the
products; whereas in case of non-veg products, they only verify the sample. There was no
significant response towards purchase of packaged branded products in both of these
categories of the food products. The results reflect that consumers are more interested in
freshness of the products and they want to evaluate it through their search attributes.
Further, brand loyalty in buying vegetarian or non-vegetarian food items has not been
developed so far in Indian consumers. Thus, our first hypothesis that the buying behavior
of the consumers is not altogether different for the two categories of food products can be
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partially accepted. The organized retailers can take these findings for maintaining the
inventory level for their packed vegetarian or non-vegetarian food products. Vigorous
efforts in terms of promotional programs have to be undertaken to bring non-interested
customers to organized retail outlets.
>Table 2: Buying behavior for vegetarian and non-vegetarian food products<
>Table 3: Preferred Method for buying the products<
The influence of the demographic profile of the consumers on their buying behavior for
vegetarian and non-vegetarian food products was studied using Analysis of Variance
(ANOVA) technique. The results in terms of F ratios and their significance levels are given
in Table 4. The results reveal that for purchase decisions in respect of both frequency and
transaction quantity, the responses of males and females are similar for both vegetarian
and non-vegetarian products (the F ratios are non-significant for gender characteristics of
consumers). This contradicts the findings of Haddock-Fraser et al. (2009), which showed
that gender differences were significant in respect of frequency of shopping for food
products in the Japanese market. The age of the consumers affect the frequency of buying
of both the vegetables and fruits. The consumers of 35 years and above prefer more
frequent purchase of fruits and vegetables. In case of non-vegetarian food products, the
effect of consumers’ age was visible on frequency of purchase and transaction quantity for
mutton as young consumers (less than 25 years) prefer frequent purchase of mutton as
reported by Kumar and Kapoor (2014). The monthly income of the consumers had no
influence on their purchase decisions for non-vegetarian food products (the F ratios are
non-significant for income characteristics of consumers), but it had a highly significant
effect on the frequency and amount of purchase of fruits and vegetables (F ratios are
significant at 1 % significance level). Haddock-Fraser et al. (2009) also reported that except
for the price sensitivity, there was no other income effect on the food purchase factors of
Japanese consumers. The findings indicate that by and large, age and income of the
consumers play an important role in influencing their buying behavior for vegetarian food
products, but the demographic characteristics of consumers do not significantly influence
the buying behavior for non-vegetarian food products. Therefore, the H2 is partly true.
>Table 4: Analysis of variance (ANOVA) between purchase behaviour and demographic
characteristics of consumers<
Importance of product attributes
The buying decisions for a product are based on how consumers perceive the quality of
the product. The consumers’ perception about the product quality depends upon a
combination of its search, experience and credence attributes. The mean value of
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consumers’ response to the importance of various vegetarian food product attributes has
been presented in Table 5. The results indicate that consumers attach more importance to
credence attributes like, freshness, nutrition, and medicinal value. These product
attributes get the first three ranks with a mean value of 4.9, 4.8 and 4.6, respectively. The
search attributes like size, colour, variety, and grading are ranked low by the consumers.
The experience attribute ‘taste’ got the rank of 5 with the mean value of consumers’
response as 4.5. The mean value of consumers’ response on the importance of various
non-vegetarian food product attributes has been presented in Table 6. Freshness and
nutritional value (free from chemicals) were also ranked as extremely important product
attributes by the consumers of non-vegetarian food products, with a mean value of 4.9
and 4.55, respectively. The importance of credence attributes has also been highlighted in
the study conducted by Dimech et al. (2011) for the Maltese consumers of fruits and
vegetables. Freshness has been found to be the most important criterion consumers look
for while purchasing non-vegetarian foods (Haddock-Fraser, et al. 2009; Becker, et al.,
1997; Raju and Suryanarayana, 2005; NABARD, 2011). These results contradict that that
Indian consumers are always price conservative in their buying behavior. Rather, the
results indicate that the consumers are moving more towards product attributes for
buying the vegetarian and non-vegetarian food products, as has been reported by Goyal
and Singh (2007). The organized retailers have to maintain the quality of food products
with high priority.
>Table 5: Importance of product attributes for vegetarian food products<
>Table 6: Importance of product attributes for non-vegetarian food products<
Consumers’ response to different product attributes were clubbed into three and two sets
of related attributes, respectively, for vegetarian and non-vegetarian food products using
principal component analysis (Tables 7 and 8). Using factor analysis, these attributes
explain 66.38 percent and 69 percent of variance in consumers’ preference for vegetarian
products and non-vegetarian products, respectively. For vegetarian food products, the
variance indicated by the factor “Credence Attributes” is 30.83 percent, and the product
attributes like nutritional value, hybrid variety and organic cultivation practices, medicinal
value, and freshness load high on this factor in the descending order. The second factor
“Search Attributes” explains 19.25 percent variation in consumers’ preference and product
attributes like grading/sorting, variety, size, and colour load high on this factor in the
descending order. The variance shown by the third factor called “Experience Attributes”
turned out to be 16.30 percent and product attributes like taste and odour load high on
this factor.
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>Table 7: Factor Analysis - rotated component matrix for vegetarian food product
attributes<
In case of non-vegetarian products, the variance indicated by the first factor called “Food
Safety” is 55 percent, and the product attributes like chemical-free meat, animal kept well
before slaughter, and meat served fresh load high on this factor in the descending order
(Table 8). The second factor termed as “Food Quality” explains 14 percent variation and
the product attributes like meat from healthy animal, quality of animal feed, age of animal
and hygienic conditions while processing load high on this factor in the descending order..
In India, in most of the meat shops, animals are slaughtered and processed in retail
outlets. Sometimes animals are slaughtered in front of customers if they want to see
personally what they buy (Winter, 2008). Thus the results confirm that the Food Safety
(credence attributes) also play a dominant role in influencing the consumers’ behavior for
non-vegetarian food products. It leads to the acceptance of H3 which states that the
importance of different product attributes is expected to be similar for the consumers
while purchasing vegetarian and non-vegetarian food products.
>Table 8: Factor Analysis - rotated component matrix for non-vegetarian food product
attributes<
Significance of market attributes
The preferences of consumers for different market attributes for vegetarian food products
are presented in Table 9. The figures indicate that for fruits and vegetables, market
convenience, availability of quality fresh products with availability of choices are the
preferred market attributes . The ranks of these attributes are high in terms of mean score
of consumers’ response. In case of non-vegetarian food products, assured good quality
with the mean score of 4.64 was ranked first (Table 10) followed by the meat preparation
in front of the customers’ eye (mean score of 4.50). Importantly, price turned out to be a
much less important market attribute both for vegetarian and non-vegetarian food
products. This rejects the assumption that Indian consumers resort to cheap product
strategy for purchasing food items. For Sri Lankan vegetable consumers, quality, freshness,
and low prices were the major considerations in deciding about the place of purchase of
vegetable (Mahaliyanaarachchi, 2007). In Malaysia, lower income consumer groups were
prepared to bear with dirty market places in order to keep the price affordable (Sheng et
al., 2008). A study in Vietnam on the factors affecting consumers’ preference for
traditional markets v/s supermarket revealed that freshness, price, and convenience were
important in shaping the choice of consumers for traditional outlets for fresh foods
(Maruyama and Trung, 2007). It has been reported that factors affecting choice of retail
outlets varied across the gender; while men gave more prominence to proximity, women
emphasized the merchandise offered by stores (Sinha, 2003). Factors like, value for
money, availability of variety of products at same place, good display of products, nearby
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availability, and good ambience were rated very high for food purchasing decisions
(Haddock-Fraser, et al., 2009; Gupta, 2009, Devi Prasad and Madhavi, 2014).
>Table 9: Importance of market attributes for vegetarian food products<
>Table 10: Importance of market attributes for non-vegetarian food products<
The principal component extraction method with Varimax rotation has yielded four factors
which together explain 77.97 per cent of the variance in preference of market attributes
for buying vegetables (Table 11). The first factor, termed “Physical Appearance of Market”
indicates the important attributes of markets such as cleanliness and ambience.
Physical appearances turned out to be the most important factor explaining a total of
26.82 percent variation in preference of market attributes for buying vegetables. The
second factor “Market Convenience and Services” explains 21.73 percent variation, where
attributes like market convenience, services, and its hours of operation load very high . It
signifies that consumers need the market to remain open for a long duration so that they
can make their purchases when they have time. Availability of Quality Products can be
defined as the third factor which shows 16.74 percent variation in preference of market
attributes. Here, the attributes like availability of fresh products, availability of quality
products, and availability of choices load high on the factor. The last factor “Consumer
Bargaining Power” explains only 12.68 percent variation and attributes like consumer
bargaining power and price load high on this factor.
>Table 11: Factor analysis – rotated component matrix for market attributes:
vegetables<
In case of fruits, which are relatively costly products, the results of principal component
extraction method in explaining the variance in preference of market attributes are
opposite to those found in case of vegetables. Here the factor “Consumers Bargaining
Power” explains maximum variance of 23.22 percent, whereas the factor “Market
Convenience and Services” turned out to be the least important factor explaining only
15.60 percent of variation (Table 12).
>Table 12: Factor analysis – rotated component matrix for market attributes: fruits<
For non-vegetarian products, the factor “Market Facilities and Services” turned out to be
the most important factor as it explains a total of 45.3 percent variation and attributes like
special treatment given by the vendor to the consumer, sale on credit and availability of
meat in desired quantity, load high on this factor (Table 13). The second factor “Market
Convenience and Familiarity” explains 18.9 percent variation. The attributes like familiarity
of consumers with vendors, market convenience, and meat prepared in front of
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consumers, load high on this factor. It signifies that trust on the seller plays an important
role in explaining the consumers’ choice of market for non- vegetarian food products.
Goyal and Singh (2007) have found that Indian consumers of fast food have the highest
value of taste and quality followed by hygiene and ambience. Since the credence
attributes of these products are more important for consumers, trust on seller is a
substitute for judging the quality of the products. Given the differences in the importance
of various market attributes in explaining the consumers’ responses for vegetarian and
non-vegetarian food products, we reject the H4which states that the importance of
different market attributes is expected to be similar for the consumers while purchasing
vegetarian and non-vegetarian food products.
>Table 13: Factor Analysis - rotated component matrix for market attributes for non-
vegetarian food products<
Summary and conclusions
The present research identifies and compares the factors which affect the consumers’
buying behavior of vegetarian and non-vegetarian food products in an emerging middle-
size market. Realizing the immense potential, many organized retail corporations are
aggressively venturing into the market and targeting middle and smaller cities, where the
potential is untapped till now. Most of the organized retail stores are involved in selling
both categories of food products. The study helps the marketers who are interested to
know whether the consumers’ buying process for these two categories of food products is
more or less the same or different in nature. This would help them to customize their
product specific marketing strategies as per the customers’ preferences and requirements.
The results indicate that vegetables and fish are frequently purchased products (twice or
thrice in a weak) as compared to fruits, chicken and meat which are purchased mostly on a
weekly basis. Consumption of fruits and vegetables is more as compared to that of non-
vegetarian products. The results present that a majority of the consumers in both the
categories of food products, are interested in seeing the products before buying so that
they can select the product themselves. There was no significant response towards
purchase of packaged branded products in both the categories of the food products
indicating that organized retailing in food products is still at an infant stage. Further, brand
loyalty in buying vegetarian or non-vegetarian food items has not been developed so far in
Indian consumers. The findings indicate that by and large, age and income of the
consumers play important role in influencing their buying behavior for vegetarian food
products, but the demographic characteristics of consumers do not significantly influence
the buying behavior for non-vegetarian food products. These results contradict the belief
that Indian consumers are always price conservative in their buying behavior. Rather, the
results show that the consumers are moving more towards product and market attributes
for buying vegetarian and non-vegetarian food products. The results confirm that credence
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attributes play a dominant role in influencing the consumers’ behavior for both vegetarian
and non-vegetarian food products. Physical appearance of the market (cleanliness and
ambience), market convenience and services are significant factors affecting consumers’
purchase decisions for vegetarian and non-vegetarian food products. Additionally, trust on
the seller plays an important role in explaining the consumers’ choice of the market for
non-vegetarian food products.
It is clear that there are perceptible differences in buying behavior of the consumers for
the two categories of food products. Consumers do not give similar emphasis to frequency
and volume of purchase, while purchasing vegetarian and non-vegetarian food products,
but their buying behavior remains the same for both the categories of products in terms of
preferred form of purchase. The importance of different product attributes is not similar
for the consumers while purchasing vegetarian and non-vegetarian food products as
credence attributes dominate the buying behavior of consumers of vegetarian food
products. For non-vegetarian food products, search attributes are equally important along
with credence attributes. On the other hand, the importance of different market attributes
is also not similar for the consumers while purchasing vegetarian and non-vegetarian food
products. The research establishes that vegetarian and non-vegetarian food products
cannot be treated as homogenous products, and therefore, product specific information
would play the key role in promoting organized retail. These results provide strategic
inputs to the retail industry to customize food retailing as per the consumers’ choices and
their preferences.
Implications for the organized retail industry
Given a very dismal consumers’ response towards purchase of packaged branded products
in both the categories of the food products, vigorous efforts in terms of promotional
programs have to be undertaken to bring customers to organized retail outlets. Since the
credence attributes of these products are more important for consumers, trust on the
seller is a substitute for judging the quality of the products. Food labeling would be the key
source of information to the consumers and marketers can use it as an important
instrument for influencing the buying decisions of the consumers. The results clearly spell
out that the consumers’ purchase decisions are different for vegetarian and non-
vegetarian food products in terms of frequency and transaction quantity. The organized
retailers can take these findings for maintaining the inventory level for their packed
vegetarian or non-vegetarian food products. It would require designing robust supply
chain to make sure the availability of food products and simultaneously minimizing the
wastage and inventory cost of the different food products. The organized retailers have to
maintain the quality of food products at the top, irrespective of the category of the
product. The organized retailers should reap the benefits of having good market ambience
and services to attract the young and affluent consumers.
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End Notes
1. Odisha is located on the east coast of India. It, is considered as one of the poorest states
of the country. However, during the last decade it has experienced all round development
and has developed at a higher rate than the national average. Organized retail has already
taken root in major cities of Odisha and its share in overall sale is on the rise. For instance,
in Bhubaneswar, a city having a population of under one million, there were no organised
retailers till 2003 but by the year 2008, it had 21 such retailers (Harper, 2010).
2. Bhubaneswar and Rourkela are the two cities in the State of Odisha, which are
developing very fast though they come under non-metro cities of the country. These two
cities had the maximum Gross District Domestic Product (GDDP) during the year 2012-13
among all the 30 districts of the State of Odisha. To study the future of retail in India, the
National Bank for Agriculture and Rural Development has classified Bhubaneswar as a B1
city, i.e. non-metro middle sized city (NABARD, 2011).
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About the authors
Dr. Niraj Kumar is a Professor of Rural Management at Xavier Institute of Management,
Bhubaneswar (India). His areas of interest are Agri-Business, Rural Marketing, and
Development Communication.
Dr. Sanjeev Kapoor is a professor at Indian Institute of Management, Lucknow (India). He
holds Ph.D. in Rural Banking and Agriculture Economics. His current research areas are
Agriculture Marketing and Rural Finance.
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Table 1: Socio-economic Profile of Respondents
Sl.
No.
Characteristics No. of Respondents
( %)
1 Gender
Male 55.3
Female 44.7
2. Age (years)
< 30 32.6
31 - 40 35.8
41 - 50 28.7
> 50 2.9
3. Education
Intermediate 7.0
Graduate 48.0
Post Graduate 45.0
4. Family monthly income (Rs.)
10,000 -20,000 7.4
20,000-40,000 40.0
40,000-75,000 48.1
>75,000 4.5
Table 2: Buying behavior for vegetarian and non-vegetarian food products
Product Frequency of
Purchase (mode value)
Average Transaction
Quantity (Kg.)
Vegetables 2 3.5
Fruits 3 2.7
Mutton 3 0.9
Chicken 3 0.9
Fish 2 1.0
Note: 1: Daily, 2: Twice to thrice in a week, 3: Once in a week, 4:Twice in a month ,5: Once
in a month
Table 3: Preferred Method for buying different food products (percentage of
respondents)
Decision Criteria
Non- Vegetarian
Products
Vegetarian Products
Physically verifying and selecting 35.4 69.0
Seeing the sample 56.6 26.5
Properly packed by vendor 1.0 3.5
Take branded product (packaged) 0.0 1.0
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Table 4: Analysis of variance (ANOVA) between purchase behaviour and demographic
characteristics of consumers
Purchase Decision Product Gender Age Income
Frequency of Purchase Vegetables 1.73 9.84** 22.74***
Fruits 2.04 7.29* 21.27***
Mutton 0.038 2.313* 0.204
Chicken 0.096 1.045 0.170
Fish 0.652 0.424 1.478
Transaction Quantity Vegetables 0.96 4.76* 10.43***
Fruits 0.034 1.84 05.52***
Mutton 0.065 2.617** 1.322
Chicken 2.261 3.133** 0.958
Fish 0.238 0.673 0.427
Note: *** Significant at 1 percent level, **Significant at 5 percent level, * Significant at 10 percent level
Table 5: Importance of product attributes for vegetarian food products
Product Attributes Mean*
Freshness 4.9
Nutrition 4.8
Medicinal value 4.6
Hybrid/Local variety 4.5
Taste 4.5
Variety 4.5
Size 4.3
Colour 4.2
Odour 4.2
Grading/Sorting 4.2
Organically grown 3.9
*1= not at all important, 5= most important
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Table 6: Importance of product attributes for non-vegetarian food products
Product Attributes Mean*
Served fresh 4.90
Chemical free 4.58
From healthy animal 4.55
Age 4.41
Maintained total hygienic
condition while processing 4.36
Kept well before slaughter 3.83
Animal with good quality
feed 3.62
*1= not at all important, 5= most important
Table 7: Factor Analysis - rotated component matrix for vegetarian food product
attributes
Product Attributes
Credence
Attributes
Search
Attributes
Experience
Attributes
Nutrition 0.841 0.121 0.007
Hybrid/Desi variety 0.808 0.162 -0.017
Organically grown 0.772 0.074 0.042
Medicinal value 0.643 0.276 0.068
Freshness 0.629 0.211 0.302
Grading/Sorting -0.043 0.856 0.000
Variety 0.356 0.678 -0.018
Size 0.448 0.655 0.087
Colour 0.442 0.495 0.371
Taste -0.152 0.223 0.896
Odour 0.284 -0.188 0.863
Total variance
explained (%) 30.83 19.25 16.30
Cumulative variance
explained (%) 30.83 50.08 66.38
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
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Table 8: Factor Analysis - rotated component matrix for non-vegetarian food product
attributes
Attributes Food Safety Food Quality
Chemical free 0.900 0.163
Kept well before slaughter 0.869 0.248
Served fresh 0.718 0.402
From healthy animal 0.163 0.906
Animal fed in good quality food 0.244 0.706
Age 0.220 0.634
Maintained total hygienic condition while processing 0.534 0.606
Total Variance Explained (%) 55 14
Cumulative Variance Explained (%) 55 69
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Table 9: Importance of market attributes for vegetarian food products
Attributes Mean*
Vegetables Fruits
Market convenience 4.36 3.90
Availability of quality products 3.68 3.90
Availability of variety/choices 3.60 3.50
Availability of Fresh products 3.48 3.90
Hours of market operation 3.20 3.30
Price 3.08 3.10
Bargaining power 3.04 3.10
Market ambience 3.00 3.10
Market cleanliness 2.84 3.10
Market services 2.84 3.00
*1= not at all important, 5= most important
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Table 10: Importance of market attributes for non-vegetarian food products
Factors Mean*
Assured good quality 4.64
Prepared in front 4.50
Near to house/ convenience 3.69
Acquaintance with shop keeper 3.37
Desired quantity 3.16
Special treatment 2.41
Cheaper than market 2.23
Credit transaction 1.62
*1= not at all important, 5= most important
Table 11: Factor analysis – rotated component matrix for market attributes: vegetables
Attributes
Factors
Physical
Appearance of
Market (M1)
Market
convenience
and services
(M2)
Availability
of quality
products
(M3)
Consumer
bargaining
power
(M4)
Market cleanliness 0.791 0.364 -0.219 0.078
Market ambience 0.550 0.227 -0.555 -0.238
Market convenience -0.205 0.839 -0.195 0.148
Market services 0.174 0.825 -0.014 -0.009
Hours of market
operation -0.076 0.933 -0.208 0.144
Availability of Fresh
products 0.040 0.091 0.864 -0.082
Availability of quality
products 0.540 0.205 0.751 0.052
Availability of
variety/choices 0.288 0.386 0.758 -0.062
Bargaining power -0.169 -0.249 -0.186 0.684
Price 0.371 -0.038 0.544 0.611
Total variance
explained (%) 26.82 21.73 16.74 12.68
Cumulative variance
explained (%) 26.82 48.55 65.29 77.97
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Dow
nloa
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by D
eaki
n U
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rsity
At 2
0:48
14
June
201
5 (P
T)
6
Table 12: Factor analysis – rotated component matrix for market attributes: fruits
Attributes
Factors
Consumer
bargaining
power (M4)
Physical
Appearance
of Market
(M1)
Availability
of quality
products
(M3)
Market
convenience
and
services
(M2)
Bargaining power 0.861 -0.146 0.060 -0.144
Price 0.812 -0.116 0.364 0.187
Market ambience -0.018 0.905 0.070 0.039
Market cleanliness -0.101 0.844 0.347 0.144
Availability of
variety/choices 0.201 0.405 0.763 -0.064
Availability of quality
products 0.240 0.128 0.858 0.145
Availability of Fresh
products 0.301 0.175 0.834 -0.009
Hours of market operation 0.146 -0.427 0.330 0.715
Market convenience 0.095 0.460 -0.302 0.695
Market services -0.388 0.267 0.170 0.679
Total variance explained
(%) 23.22 21.18 20.86 15.60
Cumulative variance
explained (%) 23.22 44.40 65.26 80.86
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Table 13: Factor Analysis - rotated component matrix for market attributes for non-
vegetarian food products
Attributes Facilities & Services (M1) Convenience (M2)
Special treatment 0.822 -0.285
Credit transaction 0.736 0.387
Desired quantity 0.679 -0.297
Cheaper than market 0.477 -0.635
Assured quality -0.761 -0.034
Acquaintance with shop keeper -0.021 0.892
Convenience -0.038 0.664
Prepared in front of eyes -0.711 0.436
Total Variance Explained (%) 45.3 18.9
Cumulative Variance Explained (%) 45.3 64.2
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Dow
nloa
ded
by D
eaki
n U
nive
rsity
At 2
0:48
14
June
201
5 (P
T)