p.hd chpter -5 new.final

8/2/2019 P.hd Chpter -5 New.finaL

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Chapter -5

Brand Preference & Consumer Decision Analysis in the Units.

Concept of Brand.

Strategic Relevance of Branding.

Brand Name, Major Brands, Brand Image.

Brand Preference in Relation to Rice.

Factors Affecting Brand Preference.

Concept of Decision Making.

Procedure for Buying Decisions in Relation to Rice.

Effect of Advertisement on Consumer Decision.

Findings.


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Concept of Brand

To understand the concept of Brand, it is imperative to

understand first what brands stand to both the organizations under study.Conceptually both organizations under study take the brands of their

products associating with name, term, design, symbol, and all other

features that are unique and identifies in their products or services by their

customers which are distinct from those of other sellers. Any brand of the

units may identify one item, a family of items, or all items of those units

under study. A brand in the units under study take many forms,

including a name, sign, symbol, color combination orslogan. The word

brand for both the companies has evolved to encompass identity; it affects

the personality of a product, company or service.

Strategic Relevance of Branding

Strategic relevance of branding for both the companies is

associated with a specific concept like India Gate Basmati Rice. Kohinoor

Basmati Rice etc. In fact strategically the reputation of both the

companies is at stack with the reputation of their brands. Consumers may
http://en.wikipedia.org/wiki/Namehttp://en.wikipedia.org/wiki/Sign_(display_device)http://en.wikipedia.org/wiki/Symbolhttp://en.wikipedia.org/w/index.php?title=Color_combination&action=edit&redlink=1http://en.wikipedia.org/wiki/Sloganhttp://en.wikipedia.org/wiki/Namehttp://en.wikipedia.org/wiki/Sign_(display_device)http://en.wikipedia.org/wiki/Symbolhttp://en.wikipedia.org/w/index.php?title=Color_combination&action=edit&redlink=1http://en.wikipedia.org/wiki/Slogan


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not be knowing the name of the company but perceive the product

through its brand name. The strategic relevance of the word "brand" is

sometimes for both the companies used as a metonym, referring to both

the company that is strongly identified with a brand. Strategically for

both the companies brand is the personality of their products, services or

companys (name, term, sign, symbol, or design, or combination of them)

and how it relates to key constituencies such as customers, staff, partners,

investors, and other stake holders etc.

It is very commonly seen that some people distinguish the psychological

aspect, brand associations like thoughts, feelings, perceptions, images,

experiences, beliefs, attitudes, and so on that become linked to the brand,

of a brand from the experiential aspect. The experiential aspect consists of

the sum of all points of contact with the brand and is as brand experience.

The psychological aspect of every consumer always linked to as the brand

image, is a symbolic construct created within the minds of consumers,

consisting of all the information and expectations associated with a

product, service or the companies providing them. Both the companies

engaged in branding seek to develop or align the expectations behind the

brand expectations, and creating the impression that a brand associated

with a product or service has certain qualities or characteristics that make

it special or unique. A brand is therefore is one of the most valuable
http://en.wikipedia.org/wiki/Metonymyhttp://en.wikipedia.org/wiki/Metonymy


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elements for both companies in an advertising theme. It is demonstrated

what the brand owner is able to offer in the market. Both companies are

band conscious and put all out efforts in their brand management. Both

companies do the orientation of the whole organization towards making

their employees and all other stake

holders aware about their brand in regular intervals. Strategically, careful

brand management done by the both companies seeks to make the product

or services relevant to the target audience and customers. Brand strategy

for both the companies are seen as more than the difference between the

actual cost of a product and its selling price - they represent the sum of all

valuable qualities of a product to the consumer.

The main strategy of creating brand image and its relevance for both the

companies is widely known in the marketplace to acquirebrand

recognition. Through this both companies strive to establish brand

recognition builds up to a point where their brands enjoy a critical mass of

positive sentiment in the marketplace, and to achievebrand franchise. One

of the many goals, both companies struggle in brand recognition for the

identification of their brands without the name of their company present.

In nut shall both companies want that they should be known by their

customers through their brand image but rather not by the name of their

companies? They understand it very clearly that consumers may look on

branding as an important value added aspect of products or services, as it


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often serves to denote a certain attractive quality or characteristic. From

the perspective of brand owners, branded products or services also

command higher prices. Where two products resemble each other, but one

of the products has no associated branding, people

may often select the more expensive branded product on the basis of the

quality of the brand or the reputation of the brand owner.

Brand Name, Major Brands, Brand Image

There are number of famous brands of rice available in India. The

names of some of the famous rice brands are like - India Gate, All Qila,

Double Brand Basmati Rice, Hanuman Brand Basmati Rice, RST

Brand Basmati Rice, Resham Brand Basmati Rice, Tilda Basmati Rice,

Pari Basmati Rice, Dawat Basmati Rice, Kohinoor Basmati Rice, Blue

Level Basmati Rice, Lal Havali Basmati Rice, Annapurna Basmati

Rice,

Both the companies are over sensitive on their brand image. As the

strategist of both the companies realize this fact that for the overall

growth of their brand and products, it will be necessary to tap all

segments of the market. Hence to establish their brands in all segments

both the companies have divided the market into three categories.

These are Domestic Market, Institutional Market and International

market. A very concentric efforts and strategies are made for the


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different markets to make its brand popular. Both companies perceive

that brand image of their products is to identify and develop a strong

image in the mind of the public by way of very effective and

penetrating communication. They know that customers

do not only buy their product and faith and trust they also instill with

the product through which they expect to get the full satisfaction from

the quality of the product, return on their investments, and pride with

sophistication on buying the products etc. Both companies reinforce

their brand image through brand communication such as unique feature

in packaging, advertisement, promotion, customer services, word of

mouth publicity, and all other aspect which are necessary to keep them

alive in the market. Both companies evoke brand image by asking

consumers the first word/ image that come to their mind in order to

check their feelings and sentiments about their product, this way the

companies under study want to read the minds of their customers

which is called in the companies top of the mind. The associate all

attribute with the brand to ascertain the strength of their products image

in the market. Everything related to their brand or product such as cost,quality, deliveries, packaging, yields, aroma, fragrance, or many more

they take into their consideration for formulating some strategy to

make brand image in the mind of the customers.


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Brand Preference in Relation to Rice

Theoretically brand preference is the process to measure

brand loyalty in which a customer choose a particular brand in

the presence of other competing brand, but normally accept the substitute

products if the brand is not available, or may be choose the substitute

brand which is more attractive and cheaper without realizing its quality at

the time of first purchase. Both the companies under study began to

develop their brand image at the very early stage to develop the

preference for their products by the customers. In order to build brand

preference, both companies set the goal to first get on the customers

preference and then to move up the set hierarchy to become the brand

consumers preference. Both companies know it very well that gaining and

maintaining consumer preference is a battle that is never really won. Not

only this both companies know that consumers have many more choices,

more information, and higher expectations than ever before specially after

the advent and advancement of information and technology. To move the

customers from trials to preference, brands need to deliver on their value

proposition, as well as dislodge someone else from the customers

existing preference set. They know that the survival and growth of their

companies depend upon customers perception which includes pricing

first; promotion and product availability all have tremendous impact on


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the position of their brand in the customers preference. Both of them

know that there are numerous verities of rice with all big claims are

available in the market, and the gullible consumer is confused to see all

claims. The customers keeps

doing trials and look for a rice quality which is not only aesthetically

attractive but give nice fragrance and aroma too that to at the cheapest

cost. Both companies are struggling to form brand preference in the mind

of their loyal customers yet they are unable to do so as in the end of the

day they find customers loyalty zero despite their all best and sincere

efforts.

In order to establish the facts that whether consumers are aware the brands

and quality of the rice while making their purchases, a survey was done

on 750 respondents in the different cities and areas. The results are carried

out on the basis of a well laid questioner through which it the researcher

has strived to establish the facts that by and large consumers are ignorant

and not having sufficient knowledge while purchasing rice for their own

consumption.

The results of the findings are shown by way of different graphs with

analysis hereunder.

Analysis


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No. of respondents from different part of India

Sr no. Parts of India No. of respondents1 Urban Area 250

2 Rural area 100

3 Semi Urban area 225

4 Metro 175


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Analysis: The research was carried on 750 respondents from different

parts of India. In which 34% which accounts 250 respondents were taken

from urban area , 28% that is 225 from semi urban , 24% of the

respondents that is 175 from metro and rest belongs to the rural area

which accounts 14% of the total respondents that is 100 in numbers. .

1. While purchasing Rice what people prefer?

Sr no Prefered Items No of respondents

1 Branded items 250

2 Non branded Items 300

3 Both 200


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Analysis: It was found that while purchasing grocery items , non

branded items were prefered more (40%) by the respondents then

the branded items 34% followed by other items available in the

market which falls arround 26% of the total respondents.

2. From where Customer purchase the Rice?

Sr no Prefered Items %age

1 Branded items 34

2 Non branded Items 40

3 Both 26


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2 Departmental store 20

3 Supermarket 13

4 village mandi 33

5 Any other 7

Analysis: the research shows that most of the people choose village

mandis for buying rice. The customers base is arround 33% for

village mandis i.e 250 customers 27% prefers kirana shops ,20%prefers departmental stores and 13% prefers supermarkets to

purchase their rice. There are also some other source which is

prefered by 7% of the total population.


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3. What names come to your mind when people think of branded

Basmati rice?

Sr no Prefered Brands %age of respondents

1 Lal Quila 24

2 India gate 40

3 Dawat 29

4 Any Other 7

Sr no Prefered Brands No. of respondents

1 Lal Quila 180

2 India gate 300

3 Dawat 220

4 Any Other 50


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Analysis: when customers were asked about their preference of basmati

rice brand, most of them used India gate as their best basmati rice brand

(40%) which accounts 300 of the total respondents. 220 used Dawat

brand and 180 used LalQuila basmati rice. Rest used other brands which

is 7% of the respondents.

4. Do people prefer to buy branded Basmati rice:

Sr no Purchase branded rice No. of people

1 Yes 260

2 No 490


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Sr no Purchase branded rice % age of people

1 Yes 38

2 No 62


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Analysis: when the respondents were asked about there preference

for branded basmati rice . we found that 490 respondents preferednon branded basmati rice and said no to branded basmati. Only 260

respondents said yes to buy branded rice. 38% of the respondents

said YES and 62% respondents said NO.

5. What is your frequency of buying Branded Basmati rice?

Sr No Frequency of purchase No. of respondents

1 Always 80

2 Once in a while 190

3 On special occasions 110

4 Never 360

5 Any other 10


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Sr No Frequency of purchase %age of repondents

1 Always 10

2 Once in a while 25

3 On special ocasions 154 Never 48

5 Any other 2

Analysis: The frequency of buying branded basmati rice by

respondents showed that more than 360 respondents never preferd

branded basmati rice 190 respondents purchased once in a while and

110 respondents purchased it in special opccasions. The percentage

of respondents who always prefered branded basmati rice was

founded only 10% of the total 750 respondents. The percentage of

frequency of buying branded basmati rice once in a while is 25%, onspecial occasions is 15% ,and 49% respondents never purchased

branded rice.


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Q6. Where from do you buy branded Basmati rice?

Sr no Buying place no of respondents

1 Kirana shop 200

2 Departmental shop 255

3 Supermarket 245

4 village mandi 0

5 Any other 50

Sr no Buying place %age of respondents

1 Kirana shop 37

2 Departmental shop 343 Supermarket 33

4 village mandi 0

5 Any other 6


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Analysis: The results showed that out of total 750 respondents only

490 respondents buy basmati rice from different sources except

village mandis and 260 respondents did not purchase basmati

rice .Mostly respondents purchased branded basmati rice either from

the departmental stores which is 34% of the total or supermarket

33% of the respondents followed by 27% from kirana shops which

accounts 200 respondents the result also showed that village mandis

are not the preferrable choice for buying branded basmati rice .

Q7. Do you make the purchases of rice on the advice of the shop keeper or

take your own decision too?

Sr no Purchasing advice No. of respondents

1 Own preference 195

2 Shopkeeper advice 300

3 Random 255


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Sr no Purchasing advice %age of respondents

1 Own preference 26

2 Shopkeeper advice 40

3 Random 34


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Analysis: The result showed that customer mostly purchased

basmati rice on shopkeeper advice. 300 of the respondents said that

their buying decisions involves advice from shopkeepers,255responded random buying decision and only 195 respondents made

their decision on their own depending on their personal preferences .

shopkeeper advice were taken by 40% of the respondents and only

26% purchased by their own preference.

10.Do you think that the shop keeper from where you are buying, havingknowledge about the rice quality as basmati or non basmati.

Sr no Shopkeepers Knowledge No of respondents

1 Yes 300

2 No 250

3 Can't say 200


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Sr no Shopkeepers Knowledge %age of respondents

1 Yes 32

2 No 46

3 Can't say 22

Analysis: The respondents views showed that there was a mixed result

about shopkeeper knowledge . 32% of the respondents said that

shopkeeper were having the knowledge about the rice quality 36% said

they were not and 35% of the respondent were unable to come up with

any conclusion .the number of respondents who said shopkeeper has

proper knowledge about rice quality were 240, 345 said no and 165 were

unable to say about their shopkeeper knowledge.


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11. After making your purchases on the advice of shopkeeper, you feel

satisfied with the quality or not?

Sr no Satiesfied with shopkeeper advice No of respondents

1 Yes 45

2 No 255

3 Can't say 450

Sr no Satiesfied with shopkeeper advice %age of respondents

1 Yes 6

2 No 34

3 Can't say 60


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Analysis: The result reveals that respondents who made their purchase

with shopkeeper suggestion were mostly dissatisfied with the quality of

the basmati rice . 255 respondents said No when asked whether they are

satisfied with the quality or not only 45 respondents said that they are

satisfied with the quality of basmati rice. There were 450 people who

were unable to answer the question. The percentage of respondents who

said No is 36%, who said Yes is 6% and in Cant say category there were

60% .

12. Which of the following factors induce you most to go for branded

Basmati rice?

1. Good quality

2. Varieties3. Good Taste

4. Assured quantity

5. Packaging

6. Advertising

7. Status Consciousness


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Sr No Factors affecting buying behavior No of respondents

1 Good quality 218

2 Varieties 60

3 Good Taste 187

4 Assured quantity 120

5 Packaging 30

6 Advertising 113

7 Status Consciousness 22

Sr No Factors affecting buying behaviour %age of respondents

1 Good quality 29

2 Varieties 8

3 Good Taste 25

4 Assured quantity 16

5 Packaging 4


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6 Advertising 15

7 Status Consciousness 3

Analysis: The factors which induces a customer most was found as good

quality followed by good taste.218 respondents said good quality as the

most important factor which induces them to go for a branded basmati

rice,187 said good taste,120 said assured quality,113 said due to

advertising ,60 due to varieties and rest were in favour of status and

packaging .The percentage of respondents who said good quality were

29% ,for good taste 25%, for assured quantity 16%, advertising15%,varities 8% and 4% and 3% for packaging and status conciousness

respectively.

13. Are you satisfied with branded rice which you have used?


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1. Yes 2. No

Sr no Satisfaction No of people

1 Yes 3802 No 270

Sr no Satisfaction %age of people

1 Yes 51

2 No 35


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Analysis: 380 respondents were not satiesfied with the branded basmati

rice they have used only 270 were found satiesfied .Which means more

than 51% were not satisfied with the branded basmati rice they have used.

Q14: Are you aware of India Gate as a brand of Basmati rice?

1. Yes 2. No

Sr no Awareness of India Gate rice No of respondents

1 Yes 300

2 No 450


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Sr no Awareness of India Gate rice %age of respondents

1 Yes 40

2 No 60

Analysis: the research shows that 450 respondents were not aware of India

gate basmati rice only 300 respondents are aware of the brand or is known


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to them. 60% of people are not aware of India gate rice which means only

40% people were aware of India gate rice.

Q15: Are you satisfied with overall offering of India Gate Basmati rice?

1. Yes 2. No 3. Dont use

Sr No satisfaction with offerings of India gate rice No of respondents

1 Yes 250

2 No 50

3 Dont use 450

.

Sr No satiesfaction with offerings of India gate rice %age of respondents

1 Yes 33

2 No 7

3 Dont use 60


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Analysis: out of 250 respondents who were satisfied with India gate rice

33% of the respondents were of aware of india gate rice and satisfied

with the offerings of India gate rice.

16. If you are not satisfied with the India Gate as a brand of basmati rice, what is

reason?

1. Poor quality2. Impurity3. Unavailability4. High Price5 .Poor Packaging6. Satisfied7. Not user

Sr no Factors No of respondents1 Poor quality 0

2 Impurity 1

3 Unavailability 0

4 High Price 24

5 Poor Packaging 0

6 Satisfied 250


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7 Not User 450

Sr no Factors %age of respondents

1 Poor quality 0

2 Impurity 1

3 Unavailability 0

4 High Price 6

5 Poor Packaging 0

6 Satisfied 33

7 Not user 60


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Analysis: the result showed that the main factor due to which respondents were not satisfied with

india gate rice is its high price which represents 6% of the dissatisfied respondents followed by

impurity 1%

17. If you are not satisfied in general with the branded basmati rice, what is reason?

1. Poor quality2. Impurity3. Unavailability

4. High Price5 .Poor Packaging6. Lack of awareness

Sr no Improvement factors No of respondents

1 Poor quality 10

2 Impurity 24

3 Unavailability 8

4 High Price 321

5 Poor Packaging 6

6 Lack of awareness 381


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Sr no Improvement factors %age of respondents

1 Poor quality 1.33

2 Impurity 3.2

3 Unavailability 1.06

4 High Price 42.8

5 Poor Packaging 0.8

6 Lack of awareness 50.8


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Analysis:The research shows that the factors which canimprove basmati market rice in general are high price andawareness level. As 381 repondents said they feel lack inawareness programmes and 321 said high price as aimportant factor for improvement of basmati rice market. Restadvocated poor quality,impurity,poor packaging andunavailibility. 51% respondent stated lack of awareness asthe main reason followed by 42% respondents as high price.


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Findings of the Analysis

1. In this research, researcher have collected sample based on

convenience sampling from Ghaziabad, New Delhi,

Jalandhar, Kolkata, Ernakulum, Bareilly, Jaipur, Meerut,

Village Bazars, Village mandis.

2. In general it was found that buyers are not aware of differenceof basmati rice and non basmati rice.

3. People for buying decisions are heavily depended upon

shopkeepers advice, however respondents were also not very

sure about shopkeepers knowledge about basmati or non

basmati rice.

4. In the Malls - Interviewed 100 persons - 25% purchased

basmati rice and 75% purchased non basmati rice. In the

Departmental Stores - Interviewd 100 persons - 30%

purchased basmati rice and 70% non basmati rice, In

General stores - 100 persons - 95% rice as per the advice of

counter man without knowing its quality and 5% purchased

branded rice. Colony Shops - 50 Persons - 45 persons

purchased as per the advice of shopkeeper and 5 persons

purchased branded rice, Village shops - 300 persons - all

100% purchased as per the advice of shopkeeper.

5. During the survey it was found that India Gate, Dawat

and Lal Quila are most Prominent Branded Rice, which


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were demanded by 40%,30% and 30% respectively.

Factors Affecting Brand Preference

After conducting and analyzing the research on the

customers perceptions, it is found by both companies that consumershave single or multi- branded loyalty based on the nature of various grade

of rice available in the market. The major factors affecting brand

preference in the rice customers minds are quality of the rice, habit of

use, and regular availability. More over high quality, price, and taste of

the product are the major criteria on which the consumer selects a brand

of rice product for their domestic use and other functions. Moreover,

during the course of this study it is found that many companies have

started doing the marketing of their rice and other eatable products such as

door to door marketing at the very cheap rates, clean and good packaging,

quality, hygiene, time saving perception, reliability, good value for their

money, influence and affect the brand preference. It is established afterthe present study that rice consumers like aroma, taste, freshness, purity,

and time saves and cost saving.


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During the course of this study on buying behavior for branded fine rice

in the cities it is found that retailers were ranked as the prime source of

information and the family members as the next important source of

information about the branded fine rise. More over the preference of

purchasing the rice decision is made by the house wives of the family.

Most of the respondents were salary class and they planned to purchase

rice too along with other items once in a month generally. The aesthetical

appearance, quality, price are the main factor in deciding the customers

preference. Not only this, number of verities of rice are available in the

market in the lose form and the house wives prefer to chose rice on its

own way. It is also found that many times the change of the consumption

pattern and food habits too influence the preference. It is also seen that

income and expenditure pattern also influence the preference pattern. The

urban consumers with high income slab prefer branded products.

Concept of Decision Making

There are normally six fundamental factors which play

pivotal role in decision making of any consumer and determine to

convert sale into reality. But decision of purchasing the rice is first

based is in its whiteness, length, raw aroma and fragrance etc. Beside

consumers give due consideration on to the following factors.

Memoriability of the Product


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How easily consumer recalls the particular brand at the time of final

purchase. How easily he recognizes the product and establishes the

relevance with the brand the image of which he has created.

Meaningfulness

It is a matter of study that at what extent particular brand

is preferred in corresponding category? Does it suggest something

about a product ingredient or type of person who might use the brand?

How aesthetically appealing the quality of rice and its

basic elements. Is it inherently likable values and give the good taste

and aroma with fragrance as claimed or used earlier even on trial basis.

Transferable

The customers of both the companies like to see that the

quality of the products which are being claimed by the companies are

better than the one which they have been using and the satisfaction

level which they get by using be transferable in case they use the new

product, set the choice in their buying behavior.

Adaptable


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How adaptable and updatable is the brand element?

Whether the product has life and features of being adapted by all in the

family set the behavior of the buyer.

Protectable

The product which buyer is buying must be safe and

secure. It must not have or leave any anti impact on the health of the

consumers.

Hence, in order to understand the psychology of the customer about the

brand preference, both companies are engaged in continuous research

to gauge the customers choices.

Procedure for Buying Decisions in Relation to Rice

In order to understand the procedure for buying rice

decision of the customers, it is equally important to understand socio-

economic characteristics of the consumers as these are the important

variable which decides the consumption pattern of the rice in the family. It

is the income, age, and education of the consumers set the consumption

and buying behavior of the rice for the family food. In order to in depth

study on the procedure for buying behavior, different group of age

starting from 20 years to 60 years, sex, education, family back ground,


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family size, food habits, vegetarian or non- vegetarian, monthly income,

occupation etc.

The study reveals that rice is consumed though small or largequality, by all the respondents in the study. It is noticed that mainly house

wives take the decision to purchase the rice for the family. House wives

take the major decision of purchasing rice mainly on the basis of monthly

income. Since rice is not the main food for many families barring south

Indian families and Bengalis families, rice consumption is about 25% in a

family on monthly basis in comparison to other eatables. Normally to a

family of four to five, for normal rice eaters, 10 kg rice is sufficient for a

month and to rice eater families it is about 25 kg per month. Now the

whole decision is depended on the monthly income of the family and on

this basis the buying decision will based.

Effect of Advertisement on Consumer Decision

It is quite difficult to introspect as to how the

advertisement of rice brands influence the mind of the customers. Almost

all likeminded companies those who can afford to give costly

advertisement support to its product try to create an image of their

products in the market. In the return, consumers are always confused that

as to what product is good and which one is bad. The effect of most


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advertisements is short of persuasion. Through the repeated ads. In

different channels, it is only an effort to create a mental agenda and to

position the product in the mind of the consumer.

However, in the rice industry, very few famous companies are giving

advertisement and using all channels to popularize their products. The

companies under study are highly respectable companies and give

adequate advertisement in all channels such as TV, New Papers,

Magazines, etc. Both the companies think about the consumers and

encapsulate so many distinctive features of their products which are

unique from each other so that to tempt them with force to buy or use their

brand. Both the companies try to convey their product image through

different ways to the customers. Both the companies have adopted many

changed strategies of advertisement with the change of the time. The main

theme of the advertisement to augment the sale of its products byinfluencing the mind of the customers and creating the image of its

products.

Findings

Both companies under study are extremely cautious about

their brand image. They are not leaving any stoneunturned to create a niche in the market. They are using

all available resources to create an image of their brands

in the mind of the masses through all publicity channels.


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Whether it is TV, Radio, News Papers, local TV channels,

Local news papers etc both the companies are exploring

full potentials to touch the hearts of the consumers.

Nevertheless, attractive discounts to their dealers and

distributors are being offered on to the off takes of their

products on monthly basis/ quarterly basis/ and annually

basis. Their teams of highly competitive professionals work

through out the keep an eye on their product movement in

the market and get feed backs from different methods to

frame a suitable strategies to capture a large portion of

the market. The top management is also very much n

involved procrustean way in the process of evaluating

measuring the image of their products in the market on

routinely manner. A lot is being done by both the

companies in order to establish their respective brands

and yet lot more are in the development stage with all

sincere efforts to set forth in the offing.

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