parveen kumar.doc

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A

PROJECT REPORT

A Study On Service Quality Dimensions In Retail Store In Rohtak City

Submitted To:

MAHARSHI DAYANAND UNIVERSITY,ROHTAKIn partial fulfillment of the requirement

for the of degree of Master of Business Administration

Submitted by:PARVEEN KUMAR

ROLL NO. 4355M.B.A 5.8

INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

MAHARSHI DAYANAND UNIVERSITY,ROHTAKMAY,2008

TABLE OF CONTENTS

Acknowledgement

Declaration


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Certificate

Chapter-1

General Introduction to the study

Chapter-2

Review of Literature

Chapter-3

Research Methodology

A. Problem Statement

B. Research Design

Area of Study

Objective of the Study

C. Data Collection

Data Collection Methods

Data Collection Techniques

D. Sampling Design

Sampling Unit

Sample Size

Sampling Techniques

Limitations of the study

Objectives of study

Analysis & Interpretation

Findings & Conclusions

Suggestions

Annexure

Questionnaire Bibliography

ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in the success of

any venture. In the present world of cut throat competition project is likely a bridge


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between theoretical and practical working, willingly I have prepared this particularproject.

First of all I would like to thank the supreme power, the almighty God who isobviously the one who has always directed me to work on the right path of my life. With

his grace this project could become a reality.

I feel highly delighted with the way my dissertation report on topic

Buying Behavior of consumers of age group 18-25 for milk chocolate bars with

special reference to:-

(A study in Rohtak)

Any accomplishment requires the effort of many people and this work is not different.

Firstly, I would like to extend my sincere thanks to Mr. Jagdeep Singla (Lecturer) for

his able guidance, regular counseling, keen interest and constant encouragement, withoutthis the project would not have a successful end. I am highly thankful to him for his

helpful attitude, regular coaching and inspiration.

I sincerely thank to all the faculty members and the staff associated for their

support given to me time to time. Also, I would like to thank to all my friends and family

members for their support given to me time to time. I dont have words to express mythanks, but still my heart is full of gratitude for the favors received by me from the every

person.

(Amit Ahlawat)

DECLARATION


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I AMIT AHLAWAT Roll No.4479 student of class MBA 5.10 hereby declare the

project entitled BUYING BEHAVIOR OF CONSUMER OF AGE GROUP 18-25

FOR MILK CHOCOLATE BARS is an original work and same has not been

submitted to any other institution for awards of any other degree partially or wholly.

(Signature of Candidate)

CERTIFICATE


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It is certified that the project entitled BUYING BEHAVIOR OF CONSUMERS OF

AGE GROUP 18-25 FOR MILK CHOCOLATE BARS submitted to IMSAR

(M.D.U), Rohtak in partial fulfillment of the requirement for M.B.A course has been

carried out under my supervision.

It is further certified that it is a record of bonafide & original work done by AMIT

AHLAWAT for the award of the said degree.

Mr.Jagdeep Singla

Lecturer

IMSAR

M.D.University

PREFACE


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The customer is king. Finally ten years after the liberalization of Indias economy began.

The market place has, suddenly become tightening competitive. Not only have new

players stormed into the country, there are more brands available then ever before in

every segment of every market. The customer today buys only that which meets his/her

every desire. This demands more intimate understanding of the customer by the Smart

Companies the study has been divided into six parts.

First part contains briefly the CHOCOLATES, history of chocolates, along with the

development of passion for chocolates.

Second part presents an overview of evolution of chocolates, chocolate industry-growth

and competition in various categories. Major players in this industry.

Third and Forth part includes a brief profile about the consumer behavior & Research

Methodology for the study. This part describes the term consumer behavior and its

importance.

Part five deals with the Analysis & Discussion. Important findings have been discussed at

last for better understanding.

Lastly, Part six namely Findings & Recommendation highlights the major findings

during the course of the study. Accordingly, recommendations have been made.

AMIT AHLAWAT

Chapter-1

INTRODUCTION


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This project is about preference of the consumers towards FMCG products i.e. chocolates

in domestic market (in special context of nestle, Cadbury & Amul chocolates)

The story of chocolate began in the new world with the Mayans, and also the word

chocolate comes from the Mayan word xocoatl, and the word cocoa from the azlec

cacahuati, who drank a dark brew called cacahuaquchtl. Later, the Aztec consumed

chacahoua and used the cocoa bean for currency. In 1523, they offered cocoa beans to

Cortez, who introduced chocolate to the world, where it swiftly became a favorite food

among the rich and noble of Europe.

From the beginning, turning raw, bitter cocoa beans into what one 17 th century writer

called the only true food of the gods has been a fine art, a delicate mixture of alchemy

and science. Centuries ago it was discovered that fermenting and roasting the beans could

create an almost otherworldly flavor. In 1875, after years of trying, a 31-year-old candy

maker in vevey named Daniel peter figured out how to combine milk and cocoa power.

The ancient Aztecs believed chocolate

To be the FOOD OF THE GODFirstly, there is a need to know about the chocolatethat what is chocolate. Whychocolate is the most popular dessert flavoring around.

MEANING OF CHOCOLATE:-

1. A preparation of the seed of cocoa, roasted, husked, and ground (withoutremoving any of the fat), often sweetened and flavored, as with vanilla.

2. A beverage or confection made from this.

3. Dark brown.

4. A divine substance inspiring passion in those who consume it.

ORIGIN OF CHOCOLATE


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The word chocolate comes from the Mayan word xocoatl, and the word cocoa from the

Aztec cacahuatl. In Mexico, the beverage was called chocolath, from lath (water) and

choco. Supposedly the Spaniard found the Mexican word har to pronounce and called it

cacao. Chocolath, chocolath, chocolath. Puff puff. See? I did it! (But lets stick to cocoa)

*LoI*

From cocoa to chocolate

Sorting, clearing, frying, crushing, grinding is the only small part of stages of production

cycle transforming cocoa beans in chocolate, which we eat.

Chocolate is really the unique product, tasty, highly nutritive (about 550 kkal in 100gm of

a product), capable to be stored by years without change of properties. It contains 50-55%

of carbohydrates, 32-35% of fat, 5-6% of fibers. And also tannin substances (4-5%),

stimulators-the bromine and caffeine (1-1.5%), microelements Na, K, Mg, P, Fe and

vitamins B1, & B2.


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HISTORY OF CHOCOLATE

The discovery of cocoa was only a first step in the direction of chocolate. The Mayas

were the first to cultivate the cocoa bean for the fruits it yielded. They used the beans as

an ingredient in their favorite chocolate drink xocotlatl.

Legend suggests that the first beans came out of paradise and lent wisdom and power to

the person that ate them. For obvious reasons, the use of cocoa was kept to a minimum by

the emperors.

Before the Spanish explorers discovered the New World, chocolates and other exotic

foods were totally unknown in Europe. Columbus was the first European to become

acquainted with cocoa, but he wasnt exactly impressed.

During one of his conquest in the New World he met the Aztecs. For many generations,

they drank an infusion of grilled seeds and spices. This mixture tasted disgusting and it

also contained cocoa beans. The Aztecs adopted the ides of cocoa consumption from the

Mayas.

However the conquistadors pizzaro and, in particular, Cortes did show interest in the

bean. Fernando Cortes reached the east coast of Mexico in 1519. as an honored guest of

Montezuma (Aztec emperor and inveterate chocolate fanatic) he was offered xocotlatl a

small portion of aromatic chocolate drink mixed eith vanilla, pepper and other herbs.

For the Mayas, cocoa beans were very important, not only were they a poplar means ofexchange, they also had a religious value. The Mayas sacrificed cocoa beans at the

funerals of the upper class.


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EVOLUTION OF CHOCOLATE

(1753-1849)

1753 Swedish biologist Carolus Linnaeus revealed his feeling for chocolate

while attending to the task of classifying organisms in a binomial system.

To the chocolate

tree he gave the botanical name of theobroma cacao. Cacao refers back to

the original native language. Theobroma is a Latin term that translates to

food of the gods.

1765 In 1765 the Englishman James Watt invented the steam engine and in

doing so set in motion what we now refer to as the industrial revolution.

Around the same time in the colony of Massachusetts one of the first

machine oriented chocolate manufacturing businesses was being

established. The partnership of John Hannon, an Irishman, and Dr. James

Banker of the Massachusetts colony formed the company Hannons Best

chocolate. Through the use of an old grist mill, cacao beans were ground

into chocolate liquor, pressed into cakes of paste for eventual use as a

chocolate beverage. During a routine trading mission to the West Indies,

Hannon was presumed dead when his ship failed to returned. The name of

the company subsequently changed to the Baker Company. It was not until1927 that the Baker family sold their business to General Foods.

1774 The mysterious rumors that surrounded the death of pope clement XIV,

give credence to the notion that chocolate had become a favorable way of

distinguish poison. The pope died after consuming a chocolate beverage,

which also killed the unwritten confectioner who shared in the

consumption. Through there is no proof, the Jesuits are suspected to have

arranged his demise. The pope had been in opposition to the Jesuits, and

they were known chocolate drinkers. So the conclusion, while not

provable, is not unfounded.

1819 Francois Louis Cailler opened a chocolate factory on lake Geneva near

Vevey. He used machinery he had developed himself, making him a

pioneer in the evolution of Swiss chocolate.


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1828 Chocolate maker and chemist Coenraad Van Houten developed the

process now known as Dutching. His patented invention involved the

removal of close to half of the cocoa butter from chocolate liquor through

the use of hydraulic pressure. The removal of the cocoa butter resulted in a

commensurate decrease in fat content. Instead of fifty percent, the hard

cake that was let from this process had a fat content of only Twenty-Five

percent. The cake could then be crushed into a powder. The use of alkaline

salt allowed for easier mixing with warm water. It also made the color

darker and had the pleasing affect of a less bitter taste. This invention

would be the key in the development of chocolate as a confection.

1847 Joseph Fry was a Quaker who began manufacturing chocolate under the

name of Joseph Fry & Sons. While the original Joseph Fry left the

company to become a type founder, his sons continued the business. One

of his sons, another Joseph Fry, purchased a Watts steam engine in 1789

to more efficiently grind cacao. A great-grandson of the original Joseph

Fry led the business toward the development of edible chocolate. Hoe

found that by remixing some of the cocoa butter back into the processed

Dutched cocoa powder and adding sugar, a paste was formed that could

be pressed into molds. The effect of this was a chocolate bar that gathered

as much attention as chocolate beverages had.1849 Ghirardelli, an Italian native, planned early on having a chocolate

business. However, he traveled first to Uruguay and then to Peru before

setting in California in 1849. Though he had been attracted by the Gold

Rush, he soon learned that there was more reliable profit to be had selling

tents to other gold miners than in actual mining. He used the money he

saved and started the Ghirardelli chocolate factory, which is still located in

San Francisco.

(1850-1986)

1850s Prime Minister William Gladstone, in an effort to boost the economy,

lowered the taxes on cacao beans, allowing British manufacturers to

expand their market.


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1860 British FDA is founded. A British journal called the Lancet discovered

that many chocolate manufacturers were employing various methods of

Cutting chocolate with something less expensive. One report revealed

that cocoa powder was being thinned with brick powder. Stirred to

respond, the British government passed its first food and drug act in 1860.

1868 John Cadbury was another Qyaker who became interested in chocolate

production. In 1824 he had opened a Grocery store in Birmingham,

England. Cadbury featured cacao beans that he would roast and grind

himself. In time he realized the interest and profitability in changing his

focus to manufacturing of chocolate. Cadbury became so renowned that he

received a Royal Warrant in 1854 to be the single cocoa and chocolate

provider for Queen Victoria. Richard and George Cadbury took over their

fathers business and in 1866 purchase a Van Houton machine. They

began to market Cadbury cocoa powder. By 1868, the Cadbury Company

produced the first box of chocolate candies. Their business continues to

flourish, and in 1879 they took over the Birmingham suburb of

Bourneville. The factory they built there supported a town, providing both

worker housing and recreational facilities.

1879 During the same period that Cadbury was developing into a formidable

chocolate force, a Swiss chocolate manufacturer was struggling to find away to combine chocolate with milk. Daniel Peter could not produce

something with a smooth consistency because the milk could be made

more shelf-stable for use a baby formula. The product of Nestles

experimentation was a sweetened condensed milk. The new milk, which

had lesser water, was mixable with chocolate and made a product that

would not spoil easily. Henri Nestle and Daniel Peter formed a company

in 1879. Today, the largest food company in the world is Nestle.

1879 A conching machine was created in 1879 that allowed for the smoothest

chocolate yet. Rudolf Lindt used a concave granite bed where chocolate

liquor, sugar, and milk if desired, would be ground back and forth by

heavy rollers. Lindt named his chocolate Fondants because their texture

was as smooth as the popular creamy candies. The process of conching


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soon became a part of common chocolate manufacturing. In addition, the

friction of the rollers produced a heat that made roasting an unnecessary

steps. Today, the rollers in conching machines are kept at a controlled

temperature for an even higher quality.

1893 Milton Suavely Hershey was a Mennonite from Pennsylvania who owned

a caramel manufacturing plant. When he visited the world Colombian

Exposition in Chicago his interest was initially to purchase and use

machines to make chocolate covered candies. His interest changed course

after visiting Europe and researching the many chocolate manufacturers

there. Hershey then decided to focus his business on chocolate production

and in 1900 he introduced to the world the milk chocolate Hershey bar. It

was followed five years later by the Hershey kiss. With business

expanding beyond expectation, Milton Hershey took over the town of

Derry Church, Pennsylvania and renamed it Hershey. Thought he also

developed a Hershey, Cuba around a sugar mill he owned, Milton Hershey

was focused out of Cuba in1959 when Castro gained control. Today

Hershey, Pennsylvania is an impressive tourist attraction.

1908 The triangular Toblerone chocolate bar was created and launched into

market by Swiss chocolate maker Jean Tobler.

1913 Swiss chocolate maker Jules Sechaud invented the chocolate filledbonbon.

1929 At the end of the twentieth century Cellas Confections, on West

Broadway and canal, was a part of many factories that made up New York

Citys confectionary district. In 1929 their candy factory began

manufacturing chocolate-covered cherries. Today, while the other

confectioneries have disappeared, Cellas remains.

1936 Philip Silverstein owned a candy company on Delancey Street in New

York City. In 1936 he created a thick, nut and raisin filled chocolate bar,

known as the Chunky Bar.


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1940s As the United States geared up for a war in Europe, Militon Hershey

suggested an addition be made to the standard soldiers D-Ration. The

American military began to include three 4 ounce, 600 calorie chocolate

bars in each D-Ration. While from todays perspective this may seem

odd, the Aztecs had used chocolate for the edification of their own

warriors. In addition to lifting the energy and spirits of the troops during

World War II, the chocolate bars became associated with peace, as

malnourished holocaust survivors were rescued by American troops

offering chocolate.

1986 When Jim Walsh left his life as an adventures executive in Chicago, he

decided to move to Hawaii to start a chocolate business. He purchased

plantations on Keaau and Kona, and decided to use the fine criollo cacao

beans for his foundation. The beans he harvested are sent to California,

after they have been fermented and dried, and are processed into high

quality chocolate. Only available through mail order, the chocolate is used

primarily by pastry chefs.


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MAJOR PLAYER IN THE MARKET

CADBURY (INDIA)

Trading at rs.850, the Cadbury (India) stock presents a good long-term investment option.

After hitting a high of Rs. 981 in March 2000, the stock retraced to its present level. The

current price discounts the latest EPS 49 times. With good growth protects ahead and a

strong financial background, the stock may hold good potential for steady returns over

the long term.

Cadbury (India), subsidiary of Cadbury Schweppes Overseas, is one of the leading

players in the chocolate and sugar confectionary segment. The parent has a 51 percent

stake in the company. For the year-ended December 1999, close to 76 percent of the sales

turnover was derived from chocolate followed by malted foods (22 percent).

Cadbury (India) has for long been the leading player in the chocolate industry. It is

virtually a household name with leading brands such as Five Star and Dairy Milk. Of late,

the company has been flooding the market with new launches. Among the successes of

recent years are Perk and Picnic.

In the malted food segmented, Bournvita is one among the popular brands. However, the

health- drink segment has failed to lead support to the companys bottom-line in the

recent past. Volumes in Bournvita have been deciding for some time. However, this is

not likely to be a drag on the profitability.

Cadbury (India) has levered on its marketing strengths and product range. Competition

may stem from players such as nestle in the near term. Apart from this, other new players

such as Mars and Hersheys may have an impact on the level of competition. However,

the reduction in the excise duty on malted drinks and chocolates and the lower import

duties on cocoa is likely to have a positive impact on the cost-structure of the firm.

The earnings performance of 2000 first quarter was impressive. Sales revenue rose 20

per cent to Rs. 139.34 crores compared to the corresponding previous period. Operating


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margins declined marginally from 16.4 per cent to 15.7 per cent. Post-tax earnings rose

an 11.5 per cent to Rs. 10.34 crores. If the top line growth is sustained at this level, it

could provide a boost and growth over the long term. Shareholders can stay invested.


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NESTLE

The story of chocolate began in the new World with the Mayans, who drank a dark brew

called cacahuaquchtl. Later, the Aztecs consumed chacahoua and used the cocoa bean for

currency. In 1523, they offered cocoa beans to Cortez, who introduced chocolate to the

world, where it swiftly became a favorite food among the rich and noble of Europe.

From the beginning, tuning raw, bitter cocoa beans into what one 17 th century writer

called the only true food of the gods has been a fine art, a delicate mixture of alchemy

and science. Centuries ago it was discovered that by fermenting and roasting the beans,

an almost otherworldly flavor could be created. In 1875, after tears of trying, a 31-year-

old candy maker in Vevey named Daniel Peter figured out how to combine milk and

cocoa powder. The result-milk chocolate. Peter, a friend and neighbor of Henri Nestle,

started a company that would quickly become the worlds leading maker of chocolate.

For three decades the company called Peter, Cailler, Kohler relied on Nestle for milk and

marketing expertise. In 1929, the almost inevitable merge took place as Nestle acquired

Peter, Cailler, and Kohler.


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AMUL

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, Chocolate mass

Composition Milk Fat 2% Sugar 55% Total fat 32.33% (Milk fat + Cocoa Fat) Cocoa

Solids 7.5% Milk Solids 20% Product Specifications: Meets all requirements under the

PFA for boiled sugar confectionary. A gift foe someone you love. Amul Chocolate has

chosen the phrase A gift of someone for love to market their chocolate products.

Today, GCMMFs Amul brand of milk products receives business queries from dozens

of countries, ranging fron the U.S. and the Netherlands to Singapore and New Zealand-

thanks to an innovative marketing campaign on the World Wide Web.

The round-eyed, Chubby-Cheeked Amul Moppet has been a wildly popular advertising

fixture, with its punchy one-liners amusing Indian viewers from bus stands, lamp kisos

and billboards for over thirty years. The ultimate compliment to the butter came when a

British company recently launched a butter and called it Utterlt Butterly, a fitting

recognition of the Thorough bred, utterly Butterly Delicious Amul. Every week,

Amuls topical ads for its butter products are posted on its Web site, along with recipes

fore Indian dishes featuring Amul products. Archives of hundreds of topicals dating back

to 1979 are available on the site. The topicals have also been carried every day on theIndian World home page.


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Chapter-2

Review of Literature

CONSUMER BEHAVIOUR

The term consumer behavior refers to the behavior that consumers display in

searching for, purchasing, using, evaluating and disposing of products and services that

they expect will satisfy their needs. The study of consumer behavior is the study of how

individuals make decisions to spend their available resource (time, money, effort) on

consumption related items. It includes the study of what they buy, why they buy it, when

they buy it, where they buy it, how often they buy it and how often they use it.

Information about the pattern of consumption in various segments of society and

dynamics of consumer behavior are central to the understanding for developing newconcepts in marketing. The essence of modern marketing concept is that all elements of

business should be geared towards identifying and satisfying the needs of the consumers.

Importance of Understanding Customer Motives

The task of marketing is to identify consumers needs and wants accurately, then to

develop products and services that will satisfy them. For marketing to be successful, it is

not sufficient to merely discover what customers require, but to find out why it is

required. Only by gaining a deep and comprehensive understanding of buyer behavior

works to be mutual advantage of the consumer and marketer, allowing the marketer to

become better equipped to satisfy the consumers needs efficiency and establish a loyal

group of customers with positive attitudes towards the companys products.

Consumer behavior can be formally defined asthe acts of individuals directly

involved in obtaining and using economic goods and services, including the decision

processes that precede and determine these acts. The underlying concepts of this form a

system in which the individual consumer is the core, surrounded by an immediate and a

wider environment that influences his or her goals. Passing through a number of

problems solving stages leading to purchase decisions ultimately satisfied these goals. In

the past, the main input to the theory of consumer behavior has come from psychology.

More recently, the interdisciplinary importance of consumer behavior has increased such


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that sociology, anthropology, economic and mathematics also contribute to the science

relating to this subject.

Decision Making Process

The consumers decision to purchase or reject a product is a moments of final

truth for marketer. It signifies whether the marketing strategy has been wise, insightful,

and effective, or whether it was poorly planned and missed the mark. Thus, marketers are

particularly interested in consumers decision-making process. We would be discussing a

simple model of consumer decision making that emotional consumer. The modal, has

three major components:

1) Inputs

2) Process

3) Output


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INPUTS

The input component draws on external influences that serve as sources of

information about a particular product and influence a consumers product-related values

and behavior. Chief among these input factors are the marketing mix activities of

organizations that attempt to communicate the benefits of their products and services to

their potential customer, and the no marketing socio-cultural influences, which, when

internalized, affects the consumers purchase decision.

PROCESS

The process component of the modal is concerned with how consumers make

decisions. The psychological field represents. The internal influences (motivation,

perception, learning, personality, and attitudes) that effect the consumers decision

making processes.

Prepurchase Activity: After the problem is identified, the buyer indulges in prepurchase

activity. It is under stood that need is a father of a deed.

There generally remains a time lag when a person thinks to buy and the actual

incidence of buying. During this time, the person is energized and is likely to be

influenced by various factors. Need arousal drives the consumer to collect information

about the required product. He first indulges in internal search, scans his psychologicalfield so as to recollect of retrieve any information or past experience related to particular

need. His psychological field comprises of his past learning. Perception, personality and

past experience. If he is not satisfied he then goes in for external search and looks for

various sources of information. The degree of perceived risk can also influence this stage

of the decision process. In high risk situation they are likely to engage in complex

information search and evaluation tactics.

Of key interest to marketer are the various sources of information that the

consumer will return to and the relative influence that they will have on his buying

behavior.

Evaluation of Alternatives: when evaluating potential alternatives consumers tend to

use two types of information:


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1. A list of brands from which they plan to make their selection (the evoked set),

and

2. The criteria they will use to evaluate each brand.

The criteria consumers use to evaluate the brands that constitute their evoked sets

usually are expressed in terms of important product attributes. Consumers use

certain procedures or rules to facilitate a choice among multi attribute objects.

Consumers decision rules have been broadly classified into two major categories

compensatory and non compensatory decision rules.

An understanding of which decision rules consumer apply in selecting a

particular service or product is useful to marketers concerned with formulating a

promotional programme.

Output

The output portion of consumer decision marking model concerns two closely

associated kinds of post decision activity. Purchase behavior and post purchase

evaluation. The objective of both activities is to increase the consumers satisfaction with

his/her purchase.

Purchase Behavior: Consumer make two types of purchase and repeat purchase. If a

consumer purchase a product (or brand) for the first time, and buys a smaller quantity

than usual, this purchase would be considered a trail. Thus, a trail is the exploratory phaseof purchase behavior in which consumers attempt to evaluate a product through direct

use.

If the new brand is established product category (cola, chewing gum, candies) is

found by trail to be more satisfactory or better than other brands, consumers are likely to

repeat the purchase, Repeat purchase behavior is closely related to the concept of brand

loyalty, which firms try to encourage because it contributes to greater stability in the

marketplace.


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The Buyer Decision Process

Purchase of a Different buying tasks present different levels of complexity to the

purchaser. The AIDA model that is presented inFigure 2 considers the steps leading to a

purchase in the form of a sequential problem solving process.

Late Dr. E. K. Strongfirst promoted this classical model in 1925 and it is still

useful today because it is easy to apply as it describes the activities involved in the buyer

process. Products and services vary in the complexity of decision making involved in

their acquisition. The new shower unit, for instance, is more complicated than the

purchase of a tube of shower gel.

Robinson,Faris, and Windin 1967 put forward a model that viewed purchasing

as a problem. This is shown inFigure 3 and it describes the activities involved in the

purchasing process.

Awareness

Interest

Desire

ActionFig. 2AIDA Model of

Buying Behavior


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An individual needs a particular product. Information will be short from a variety of

sources including family and friends (Called word of mouth) from advertising, from

catalogues, from visits to retail establishments, and from many other sources. The morecomplex the products the greater will tend to be this information search. The task of

marketing is to ensure that the company products receive high exposure during these

information search periods and that the best point of product is emphasizes during the

evaluation of alternatives phase. This will put the companys product in the best light

Marketing Inputs

ProductPlace

PromotionPrice

Consumer

Purchase

Decision

Product ChoiceLocation ChoiceBrand ChoiceOther Choice

Psychological

Input

CultureAttitudeLearning

Perception

Problem RecognitionInformation Search

Evaluation of AlternativesPurchase Decisions

Post Purchase Behavior

Fig. 3 The BuyerDecision Model


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prior to thepurchase decision because even then the consumer is still susceptible to

further influences in relating to marketing the correct choices.

Marketer must also be aware ofpost purchase behaviorbecause this can affect repeat

business and forward looking companies attach as much importance to after sales

services as they do to making the initial sales. This reduces the degree of satisfaction (or

dissonance) in the case of genuine complaints. One method that is now predicted for sales

of major items like new motor cars is where companies follow up a sale by some form of

communication by letter or telephone with their customers. This builds confidence in the

mind of the customer in having made the correctpurchasing decision. The terminology

that has been attached to this kind of after sales follow up is customer care.

The Adoption Process

The buyer decision model (Figure 3) was not specifically designed for new products and

its substance was concerned with search and problem solving. Everett Rogers advanced

the model shown in Figure 4, and it related to new products. It is being with awareness.

Marketers must first create awareness and then assist customer with subsequent stages ofthe process. Consumers can not being to consider a new product or service as a solution

to need related problems without this awareness. Successfully innovative products should

attempt to be problem solving as far as the customer is concerned.

Awareness

Interest/Information

Evaluation

Trial

Adoption

Post Adoption Confirmation

Fig. 4 The Adoption Process


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Awareness can come about as a result of the marketing effort of the company or simply

by word of mouth communication. If the product has potential interest and appeal, then

potential purchasers will seek further information. Consumer then evaluates the new

products against existing products, and then makes an initial adoption by obtaining a trial

sample. Which might be a free sample or a trial purchase. The adoption stage is started

when a decision is made whether to use the product or not (In case of FMCG [Fast

Moving Consumer Goods] goods). Post adoption confirmation

is when that product has been adopted and the consumer is seeking reassurance about the

wisdom of his purchase. After a major purchase, dissonance (termed as Cognitive

Dissonance) is present in the sign of unease that that what was thought to be value for

money at the time of purchase may not, after all, turn out to be true value. Such

dissonance should be encountered by the provision is some kind of follow up either

written or through the telephone.

A more detailed model is suggested inFigure 5 that develops that adoption

process. A series of inputs feed in to the knowledge base. Theself-input includes the

psychological notions of perception, attitudes, motivation, and learning. Similar to other

inputs, they set the scene for knowledge to be interpreted into a favorable situation of

awareness.Figure 5 also shows that persuasion governs the rate of adoption that isaffected by relative advantage, compatibility, complexity, trial opportunity, and

absorbing power. The model also allows for review after the decision stage, and here

consumers can be sensitive to the influences of external information sources for

promotional appeals and form such influences as reference groups.

Relative Advantage

Compatibility

Complexity

Trial Ability

Absorbability

Fig. 5New Product PurchasingDecision Process


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It can be seen that various inputs contribute to knowledge, ranging from personal

factors to company marketing activity. Persuasion is an important phase and here a

number of factors, which are function of the product itself, can lead to the decision

whether or not to purchase the new product or service in question. The decision means

adoption or rejection. If it is adoption, them good experience can lead to its continued

adoption, but if the experience of the product or service is bad then it will be

discontinued. Conversely, rejection, or later adoption, perhaps, in the latter case through

hearing good experience of reference group members, who have purchased. Continued

adoption and later adoption need confirmation in order to continue the repeat purchase

pattern.

It is important that we look an innovator categories insofar as purchasing behavior is

concerned because consumers, as individuals, can be more, or less, respective to new

product or service idea.

The process of the diffusion of innovations propose that certain groups of

consumers will take on new ideas more quickly than other groups and they tend toinfluence later consumer groups. These groups have particular common features.

Innovators are the first small segment to take on new product ideas and they are

likely to be younger people, from well educated, relatively they affluent background and

having a high social status. They are more probably unprejudiced, discerning people

whose understanding of the new product has been more objectively ascertained than

through a sale people or company from promotional material.

Early adopters, possesses some of the characteristics of innovators, but they are

more part oflocalsystems, acting as opinion leaders within their specific group.

Early majority adopters tend to be above average in terms of social class and rely

upon company promotional efforts for data. Opinion leaders of the early adopter category

will tend to be their biggest inspiration.


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Late majority adopters tend to adopt the product or services because earlier

groups have generally accepted it.

Laggards make up the final group. They tend to be more careful and older and of lower

socio-economic standing. Clearly, adopter category will tend to differ depending upon

the new product or service being marketed.

Hierarchy of Effects

Lavidge and Steinerproduced aHierarchy of Effects model of purchasing behavior in

1961. The model starts at the awareness stage, but it could be argued that there is a stage

prior to this, which is when the potential purchaser is completely unaware of the product

or service offering, and it is through marketing communication that such awareness is

made known. The model is described inFigure 6.

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Fig. 6The Innovation AdoptionModel


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OBJECTIVE OF THE STUDY

1. To study the brand preferences of consumers from the three brands of

chocolates i.e. Amul, Cadbury, Nestle available in the market.

2. To find the extent of brand loyalty of consumers that exists among different

chocolate brands.

3. To study the influence of various aspects on buying behavior.

4. To study the usage & brand awareness of chocolates product in among the

residents of Rohtak.

5. To checkout the satisfaction level of the consumers for chocolate bars they are

using.


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CHAPTER-3

RESEARCH METHODOLOGY

Research methodology in a way is a written game plan for conducting research. Research

methodology has many dimensions. It includes not only the research methods but alsoconsiders the logic behind the methods used in the context of the study and complains

why only a particular method of technique has been used. It also helps to understand the

assumption underlying various techniques and the criteria by which they can decide that

certain technique will be applicable to certain problems and other will not. Therefore in

order to solve a research problem, it is necessary to design a research methodology for

the problem as the some may differ from problem to problem.

This chapter focuses on the various techniques, methods and assumptions used in

this study. It sheds light on the research problem, objectives of the study, and also its

limitations. The later part of the chapter explains the manner, in which the data is

collected, classified, tabulated, analyzed and interrupted so as to each to conclusive

results.

The study is of diagnostic nature and thus the overall research design is going to

be rigid. The design should provide enough provision for protection against bias-ness and

must maximize reliability.


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A) PROBLEM STATEMENT:-

Research work is management parlance is extremely important for a given close

view of the relatives of the real life business issues. For any management student who is

striving to perform outstandingly. It is of paramount importance that apart from

theoretical knowledge he must also gain some practical knowledge. Survey report deals

specially with providing an opportunity to management students to have some exposure

in real business world. My study topic deals with Consumer Behavior and different

factors that influence consumer to purchase a particular brand of chocolates.

As chocolate is regarded as one of the biggest Fast Moving Consumer Good

(FMCG), there are many factors in mind of consumer which induce them to purchase a

particular brand of chocolate. Some of these factors are Price, Taste, Packaging, Brand

name. Ever changing behavior of consumer, dominance of different brands in the market

compelled me to undertake a research work in this segment. The prime objective of my

study is to analyze the effect of various factors on buying behavior of consumers.

B) RESEARCH DESIGN:-

To analysis the buying behaviors of the residents of Rohtak Sample Survey Methods

has been employed through other methods are also important. This method is given prime

significance in modern research because of its extensive use to study the relationship of

different factors, attitudes and practices of society and to explore the problems that

cannot be treated by experimental methods.

To collect data, a number of techniques are employed under the sample survey

method i.e. questionnaire. The increasing use of questionnaire is probably due to

increased emphasis by social scientists on quantitative measurement to uniformly

accumulated data.

a) Area of study

The area of the study is different Markets of Rohtak in order to collect the Primary data

from the respondents.


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b) Study area

Study area is Rohtak.

c) Target Segment

Consumers of Milk chocolates bars of age group 18-25

C) SELECTION OF SAMPLE:-

It becomes impossible to contact each and every individual of the population due to

limitations of essential resources like time and money. Therefore, the study is preferably

allowed down to a representation sample to make the study more manageable.

Keeping in the view the objectives and resource limitation of the study, 100

respondents were considered.

Respondents - 100(Youths of age group 18-25)

The selected sample is representative of the population and is accurate and

practicable.

D) SAMPLING PLAN:-

The following factors will be taken into consideration within the scope of sampling plan:

I Sampling Unit: It defines the target population that will be sampled i.e. it

answers who is to be surveyed. In this study, the sampling unit is youth with in the agegroup of 18-25 years.

II Sampling Size: - It indicates the numbers of people to be surveyed. Though

large samples give more reliable results than small samples but due to constraints of time

and money, the sample size was restricted to 100 respondents.

Probability sampling can be of following types:

Simple random sampling

Stratified random sampling

Cluster (area) sample

In this case, stratified random sampling was done since the respondents will classified

into well defined classes or strata that were distinct from each other.


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E) COLLECTION OF DATA:

After the research problem has been defined and the research design has been

chalked out, the task of data collection begins. The data can be collected mainly through

primary sources, but it was supplement with secondary data.

I Primary data collection:

Primary data is the data which is collected through observation or direct communication

with the respondent in one form or another. These are several methods for primary data

collection like Observation Method, Interview Method, through schedules, through

questionnaires and so on.

II Secondary data collection methods:

Secondary data is collected through

Magazines

Journals

Portals

Formation of Questionnaire

Quite often the questionnaire is considered as the heart of a survey operation.

Hence it should be carefully constructed. It is an investment that is widely used to collect

various types of data and consists of long lists of questions designed to collect any

information. It has personally been found that people are more frank in giving replies to a

questionnaire than to an interview schedule. Though being less expensive, it has certain

limitations like incomplete entries and erroneous responses. But the educational

qualification of the respondents is an additional factor which renders this technique the

most relied upon.

Formation of a good questionnaire involves intensive thinking and deliberation of theproblem with predetermined objective and aims properly placed in the questionnaires.

The questionnaire framed for the purpose of the study consists of a limited number of

questions placed in logical order. So, that the objective of the question is clear to the

respondents. All the questions are centered on the problem keeping in the mind. The

questions were both open and close ended as well as multiple choices.


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LIMITATIONS OF THE STUDY

The project was successfully completed with certain inherent limitations. These

limitations were:

1) The time of research was short due to which many fact has been left

untouched.

2) The Area undertaken in research in Rohtak only. But to do a completer

research a wide area is required, so the area is also a constraint of the study.

3) Sample for the study taken is of only 100 consumers. This can also act as a

constraint in the study.

4) While collecting data some of the consumers are not willing to fill the

questionnaire, so they might not fill their true behavior. This can also be a

constraint of the study.


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DATA ANALYSIS AND INTERPRETATION

Q1. Which companies chocolate do you prefer to purchase?

Brand Name Percentage

Cadbury 40

Nestle 35

Amul 25

40%

35%

25%Cadbury

Nestle

Amul

As per shown in the Pie chart, the maximum market share is hold by Cadbury. And least

share is hold by Amul followed by Nestle. And this result is obtained from the response

of customers towards Questionnaire filled by them for the consumption of milk chocolate

bars.


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Q2. What is your pattern of consumption?

Pattern of consumption Percentage of consumption

More than one per day 15

Daily one 25

3-4 chocolates per week 45

Weekly 10

Rarely 5

As shown in Pie

chart, most of the consumers consume milk chocolate bars as

3-4 per week, which represent 45% of the total number of surveyed consumers. And

second most percentage of consumers consumes milk chocolate bars are of daily one.

Percentage of consumption

15%

25%45%

10% 5%

More than one

per day

Daily one

3-4 chocolates

per weekWeekely

Rarely


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Q3. Do you purchase the same chocolate every time?

Answer Percentage

Yes 68

No 32

Percentage

68%

32%

Yes

No

As pie chart shows, 68% of the consumer purchase the same chocolate every time, it

means that mostly consumers are brand loyal.32% of consumers dont purchase the same

chocolate every time.


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Q4. If no, then while switch over to another brand of chocolate then what factor you

consider (tick any one)?

Factors Response Percentage

Price 6 18

Quality 12 38

Brand Name 3 9.5Advt. and Ref. Group 3 9.5

Taste 8 25

Percentage

18%

38%10%9%

25%

Price

Quality

Brand Name

Advt. and Ref.Group

Taste

As shown by the pie chart, 38% of consumers consider Quality as most important

factor while switching over to any other brand of milk chocolate bars, and the second

most preferred factor is Taste


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Q5. Which factor you consider the most while purchasing the chocolate? Please tick

any one.

Consumer's consideration Percentage

Price 16

Taste 48

Brand 18

Packaging 9

Availability 9

Percentage

16%

48%

18%

9% 9%

Price

Taste

Brand

Packaging

Other

48% of the consumer of milk chocolate bars said that the most considering factor by them

on the basis of which they purchase a particular brand of milk chocolate bars is Taste of

that milk chocolate bars. And the least interested factor is Packaging and Availability.


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Q6. Which mode of advertisement influence you most to buy a particular

Chocolate? Please tick any one.

Media Percentage

Newspaper 22

Magazine 14

Radio 4

Television 54

Others(hoardings,banner,pamplets etc) 6

Percentage

22%

14%

4%

54%

6%

Newspaper

Magazine

Radio

Television

Others(hoardings,b

anner,pamplets etc)

The buying behavior of consumers is also affected by the different type of

advertisements. As shown in the pie chart, the most influencing media is electronic media

i.e. TV, and the second most influencing factor is newspaper.


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Q7. Which reference group influence you most to buy a particular chocolate? Please

tick any one.

Reference Groups Percentage

Friends 55

Family 3

Retailers 1

Celebrity 39

Others 2

Percentage

55

31

39

2 Friends

Family

Retailers

Celebrity

Others

As shown in the pie chart, from reference group friends are the most influencing factor

which influence consumer to purchase a particular brand of milk chocolate. And this

statement is supported by 55% of consumers of milk chocolate bars. And the second most

influencing factor which influence customer to purchase a particular brand of milk

chocolate bar are celebrities , and this statement is supported by 39% of consumers.


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Q8. Whether you check or consider manufacturing and expiry date while buying

any chocolate?

ANSWER Percentage

YES 55

NO 45

Percentage

55%

45% Yes

No

Pie chart says that 55% of the consumer check or consider manufacturing and expiring

date while buying any chocolate. 45% of consumers dont go for that. This should be a

matter of concern


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Q9. How much you are satisfied with the present brand of chocolate which you often

purchase?

Satisfaction Level Percentage

Highly satisfied 27

Satisfied 32

Undecided 21

Dissatisfied 12

Highly dissatisfied 8

Percentage

27%

32%

21%

12%8%

Highlysatisfied

Satisfied

Undecided

Dissatisfied

Highlydissatisfied

About 27%of consumers are highly satisfied with the present brands of Milk chocolatebars in Bhiwani and 32% are satisfied. if we consider brand wise then milk chocolate bar

ofCadbury is the most preferred brand in Rohtak which holds 40% of the market

share and after that Nestle has second position with aholding of 35% of the market

share and the least preferred brand from the take brand to make report is Amul with a

holding of 25% of market share


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FINDINGS & CONCLUSION

The findings of the study of consumer buying behavior in chocolates states among all the

three to brands i.e. Cadbury, Nestle and Amul. The brand at first place is Cadbury, the

Nestle (2nd) and last is Amul. Among all these three Cadbury is having the largest market

share i.e. 40%, Nestle 35% and Amul 25%. Among all these Brands Cadbury is the only

company offering largest number of brands in chocolates i.e. 6 (only for milk chocolate

bars). As compared to Cadbury Nestle Company is having 2 brands and Amul is with 4

brands of chocolates.

For 48% of the consumers the most important factor which is considered while

purchasing any milk chocolate bars is Taste of that chocolate. They give preference

to other factors also, but most important thing is taste.

The buying behavior of consumers is also affected by the different type of

advertisements. And the most influencing media is electronic media i.e. TV, and

from reference group friends are at most influencing position.

Quality is the most important factor which consumers consider while switching

over to any other brand of milk chocolate bars.

Consumers of Rohtak are more attracted towards the foreign brands like Cadbury

and Nestle and demand that more number of foreign milk chocolate bars should be

available in the market, like some milk chocolate bars brands of Swiss and French

chocolates. As this thing shows that consumer of Rohtak are more satisfied with the

foreign brands and hence demand more of it. But brands like Amul are not able to

get proper place in the market in spite that good advertisement is being done by

Amul also.

68% of the consumers are brand loyal.

The buying behavior of consumer for different brands of milk chocolate bars is

affected by various factors like price, taste, packaging, brand etc.

55% of the consumer check or consider manufacturing and expiring date while

buying any chocolate. 45% of consumers dont go for that. This should be a matter

of concerned.


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SUGGESTIONS

A detail study of the Consumers Buying Behavior of Age Group 18-25 For

Milk Chocolates Bars was done. Some important suggestions are as follows:

1. The Indian company AMUL has to review its process so as to gain brand loyalty

of the consumers.

2. The chocolates whose expiry dates goes off should be replaced at once and fresh

stock should be offered.

3. The chocolate companies should think on the matter that why the consumers

switch over to the other brands.

4. The chocolate companies should put more & more emphasis on the taste andquality of the chocolate so as to gain brand loyalty.

5. As factors other than TV and Newspaper are considered less so companies should

use the print and electronic media for advertisement in large extent.


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Annexure

Questionnaire

On

Buying behavior of consumer for Milk chocolate bar of age group 18-25

Q1. Which companies chocolate do you prefer to purchase?

Cadbury Amul

Nestle

Q2. What is your pattern of consumption?

More than one per day Daily One

3-4 Chocolate per week weekly

Rarely

Q3. Do you purchase same chocolate every time?

Yes No

Q4. If no, then while switch over to another brand of chocolate then what factor you

consider? Please tick any one.

Price Quality Brand Name

Advertisement and Reference group Taste

Name of the consumer ____________________________________

Age ____________________________________

Sex ____________________________________

Income ________________________________


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Q5. Which factor you consider the most while purchasing the chocolate (tick anyone)?

Price Taste

Brand Packaging

Availability

Q6. Which mode of advertisement influence you most to buy a particular

Chocolate? Please tick any one.

Magazine Newspaper

Radio Television

Other

Q7. Which reference group influence you most to buy a particular chocolate? Please tick

any one.

Friends Family Retailer

Celebrity Other

Q8. Whether you check or consider manufacturing and expiry date while buying

any chocolate?

Yes No

Q9. How much you are satisfied with the present brand of chocolate which you often

purchase?

Highly Satisfied Satisfy

Undecided Dissatisfied

Highly Dissatisfied

Q10. What is your suggestion for the improvement of your preferred chocolate

Brand?

_______________________________________________________________


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