Agriculture is one of the strongholds of Indian economy providing direct employment to 47%-51% people working in country according to latest World Bank data Today India is the leading producers & exporter of various agri-products, rice being one of them. India is 2nd largest producer of rice after China & is largest exporter of Basmati rice followed by Pakistan.Along with the large export potentiality, India is generating an increasing domestic demand for rice as a result of both opening up and income level augmentation. Demand of rice is expected to shot up due to increased domestic needs with a overall income level growth coupled with export demand for rice due to opening up of the food grain market. A combination of various factors seems to have triggered the structural increase in rice consumption. Urbanization also appears to be the most important cause of the shift in consumer preferences towards rice in India.In this changing scenario it becomes imperative to understand the future demand trends for rice, purchasing behaviour of consumers, consumption pattern, and factors affecting the purchasing behaviour of consumers for rice
5. RESEARCH
METHODOLOGY
Statement of the Problem
To study the perceptions of the prospective buyers and track their drivers of
those perceptions.
Sampling Technique
• In this research paper judgmental sampling was used.
• Judgment sample is a type of type of non-probability sampling technique where
the units to be sampled is selected based on the knowledge & professional
opinion of an expert.
Sample Size
• In order to conduct the study we took the sample size of 300 people.
6. Data Sources Used
• Primary Sources
• Secondary sources
Primary Sources of Data
• Primary sources of data included filling of questionnaires by people residing in
Delhi.
• The data was obtained by distributing the questionnaires to the customers at 36
malls and localities around it in Delhi region having Rice stores, hyper markets
and local markets as well
• The set of questionnaire had three sections.
• Section A consisted of demographic profile of the consumers such as age, gender,
educational level, income, and employment status
• Section B dealt with 8 questions regarding the preference and consumption
pattern of eating rice
• Section C discussed on the marketing of rice by using a rating scale.
7.
8. Secondary Sources
• Secondary sources of data included internet articles, articles, research papers
from EBSCO website, articles, research papers from Google Scholar, articles
from Hindustan Times and Economic Times, videos on internet related to
consumer behaviour.
The secondary data is also collected through personal visits at stores of the
best foods in NCR/DELHI interacting with storekeepers and collecting
information from visitor’s book and interaction with customers as well.
Type Of Research
• The project is a Descriptive research. The focus of descriptive research is to
provide an accurate description for something that is occurring.
• This type of research is by far the most popular form of market research.
• It is used extensively when the research purpose is to explain, monitor and test
hypotheses,
• It can also be used to a lesser extent to help make predictions and for
discovery.
9. DATA ANALYSIS
ANOVA Test (Age, Educational Qualification, occupation,
Annual household income, family size)
Chi square test on Rice brands preferred &Demography factors
(family size, income, gender, age of respondent) DATADATA
ANALYSISANALYSIS
T- Test (Gender and Marital Status)
Chi square test on Demography & frequency of Purchase Rice
(family size, occupation, income, age, gender, education, marital status)
Chi square test on the Demographic factors & Amount of rice purchase
month (family. size ,income, age, occupation,education,marital status)
10. FINDINGS & DISCUSSIONS
The respondents in this survey consisted of 90 males and 210 females which
reflected women were mostly responsible for the household and food
purchase.
The majority of consumers (80%) who are involved in purchase is less than
age of 50 Out of 300 respondents surveyed
61.6% earned Annual income ranging from Rs.5 lakh to Rs.14 lakh, with an
average annual income of 9.5 Lakh
The majority of the consumers (58.7%) had an average household size
between 4 – 6 people.
The results indicated that about 27 percent of the respondents purchased
Best, followed by Daawat rice 26%, India gate rice 16% , Kohinoor rice
23% ,Dunar rice percent while the remaining 13% purchased other brands of
rice as their preferred brand.
12. FINDINGS & DISCUSSIONS
Age group of respondent who filled the survey
The majority of consumers (80%) who are involved in purchase is less than age of
50 Out of 300 respondents surveyed
13. Purchasing behaviour of consumers on rice
• The results indicated that the majority of the consumers (76.33%) bought
rice every month
• Majority of respondents (40%) preferred to purchase only one pack when
they purchased rice.
• Majority of the respondents preferred to buy rice with the smaller packaging
size which is 5kg (64%)
• A total of 55.66% of respondents preferred to purchase food from retailers
rather than supermarket (20.66%) ,mini market (7%) and shopping mall
(12.33%)
• The results revealed that marital status, education qualification, annual
household income occupation and family size of respondents had significant
relationship with the frequency of purchasing rice
• The relationship of the demographic factors With the purchasing behaviour
of the respondents was analyzed using Chi-Square Tests
15. Chi-Square Tests on Demographic Factors &
Purchasing Behaviour
DEMOGRAPHIC
FACTORS
FREQUENCY
OF PURCHASE
AMOUNT OF
RICE
PURCHASE
N
MARATIAL STATUS Relationship Exist No Relationship
Exist
300
EDUCATION
QUALIFICATION
Relationship Exist No Relationship
Exist
300
OCCUPATION Relationship Exist No Relationship
Exist
300
ANNUAL HOUSEHOLD
INCOME
Relationship Exist Relationship Exist 300
FAMILY SIZE Relationship Exist Relationship Exist 300
16. Factors Affecting Consumers’ Preferences
On Rice Brands
Chi-Square test revealed that Education qualification and
Occupation of the respondents showed a significant relationship with
the rice brands
17. Factors Affecting Consumers’ Preferences on rice
Brands
DEMOGRAPHIC
FACTORS
PREFERENCES N
MARATIAL STATUS NO RELATIONSHIP EXISTS 300
GENDER NO RELATIONSHIP EXISTS 300
AGE NO RELATIONSHIP EXISTS 300
EDUCATION QUALIFICATION RELATIONSHIP EXISTS 300
OCCUPATION RELATIONSHIP EXISTS 300
ANNUAL HOUSEHOLD INCOME NO RELATIONSHIP EXISTS 300
FAMILY SIZE NO RELATIONSHIP EXISTS 300
18. Marketing Factors of Rice brand Preferred
• T-tests & ANOVA test on demography revealed that Age, annual household
income, occupation ,family size have significance relationship with marketing
activities
• Marketing activities apparently had impacted on consumers buying decision
making.
• More than half of the respondents remarked that price was the most
important factor in choosing which brand to purchase
• Customers are not brand loyal however the past experience of the brand do
play a crucial role while taking purchasing decisions.
Many of the respondents responded neutral to the question whether
advertising influence them to purchase rice or not
Majority of them agreed to the fact that discount and promotional offers do
influence purchasing behaviour.
The majority of respondents stated that the packaging of the rice brand
doesn’t play an important role to easily attract and persuade them to
purchase the product
19. The brand which was easily located in all stores, especially the provision
market would be highly preferred.
Customers put greater emphasis that quality, taste, flavour, physical
appearance, aroma, nutrition value while making purchasing decisions. This
clearly indicates the consumer Inspite of price sensitive is quality conscious
when it comes to purchasing rice
20. Marketing Factors of Rice brand Preferred
DEMOGRAPHIC
FACTORS
T -TEST ANOVA TEST N
MARATIAL STATUS NO Relationship
Exist
- 300
GENDER NO Relationship
Exist
- 300
AGE - Relationship Exist 300
EDUCATION
QUALIFICATION
- Relationship Exist 300
OCCUPATION - Relationship Exist 300
ANNUAL HOUSEHOLD
INCOME
- Relationship Exist 300
FAMILY SIZE
- Relationship Exist 300
22. Consumption Pattern of Eating rice
• Rice is the main staple food being consumed by most people in India and same is
true for people of Delhi
The results of the survey indicated that most of the respondents were regular
consumers on a daily basis (31%)
It was then followed by the consumption of rice four times a week (17%).
When the respondents were asked on which particular meals contained rice that
they consumed, about 66.33 percent responded that they ate plain rice, followed
by biryani rice 14%
Plain rice and Biryani rice became the preferred meals eaten by respondents
93.33% of respondents said they preferred to purchase basmati rice while 9.33%
of the respondents chose to buy brown rice.
Respondents would likely to purchase a particular type of rice largely due to its
quality, flavour and taste, physical appearance .
Price (90%) was also becoming the important factor for respondents to concern
during purchasing rice.
24. CONCLUSION
Consumers’ purchasing behaviour differed greatly in this study
Demographic factors, quality and rice attributes, location and accessibility to
the marketing outlets, price, packaging as well as branding experience were
the determinants that need to be focused in the production and marketing of
rice.
Producers as well as distributors need to comprehend these situations in
order to meet the needs of their consumers notwithstanding the marketing
efforts; quality is a noteworthy attribute that consumers are looking for.
The most popular brand was the Best and followed by Daawat.
The results also reflect that the there is stiff competition among the existing
brands and other brands are catching up to hence need to understand the
consumer behaviour and constant alternation in marketing strategies is the
need of the hour in rice industry.
Consumers in DELHI will thrust the brand that concurs with quality and
likely to increase the volume of purchase.
.
25. Stress should also be paid to customer experience they have at the time of
purchasing product.
Majority of customers prefer buying rice from Kirayana shop or retail outlet
where they can buy all products at same place.
The companies operating their own retail store should ensure that their
workforce is able to provide the good experience and clean environment to cater
the customers walking into the stores
Stress should be laid on explaining attributes like quality etc highlighted in study
to facilitate sale and influence purchasing behaviour of customer n buy all
products at once
Besides that they should label information on the rice packaging to inform the
consumers which cuisine is suitable for each type of rice to avoid them from
purchasing the wrong one.
Quality has been reported to be the main reason of rice consumption and
purchase decision making. Therefore quality should be controlled to avoid
consumer disappointment. Sanitation quality must be high
Our findings indicate that Basmati rice should not be over-positioned as a
premium product that is sold at a higher price.
28. SUGGESTIONS
Based on the study following recommendations with respect to future research
is below:-
SUGGESTIONS 1 :- A further research should be conducted to understand
the determinants of purchasing behaviour of consumer of rice at national
level.
SUGGESTIONS 2:- A further research should be conducted to understand
that the role of salesperson at retail stores in influencing the purchasing
behaviour of consumer rice In India
SUGGESTIONS 3:- A further research should be conducted to understand
the impact of nature and location of stores on purchasing behaviour of
consumer of rice at national level
29. LIMITATIONS
Time Constraint
since the study was to be evaluated for internship purpose the work related to
study had to be pushed substantially and that might had the effect on the
quality
Small Sample Size
• The sample size was of 300 which was small too and was decided keeping in
time constraint in mind and effected the data collection.
Resource Constraint
• The study involved students who had limited resources hence it acted as an
constraint as well