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INTRODUCTION
1.1 Background
Baked goods have been around for thousands of years. The art of baking was
developed early during the Roman Empire. It was a highly famous art as Roman
citizens loved baked goods and demanded for them frequently for important occasions
such as feasts and weddings etc. Due to the fame and desire that the art of baking
received, around 300 BC, baking was introduced as an occupation and respectable
profession for Romans. The bakers began to prepare bread at home in an oven, using
mills to grind grain into the flour for their breads. The oncoming demand for baked
goods vigorously continued and the first bakers' guild was established in 168 BC in
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Rome. This drastic appeal for baked goods promoted baking all throughout Europe
and expanded into the eastern parts of Asia. Bakers started baking breads and goods at
home and selling them out on the streets (Ashokkumar, 2009).
This trend became common and soon, baked products were getting sold in
streets of Rome, Germany, London and many more. This resulted in a system of
delivering the goods to households, as the demand for baked breads and goods
significantly increased. This provoked the bakers to establish a place where people
could purchase baked goods for themselves. Therefore, in Paris, the first open-air
bakery of baked goods was developed and since then, bakeries became a common
place to purchase delicious goods and get together around the world. By the colonial
era, bakeries were commonly viewed as places to gather and socialize (Morgan,
2014).
On July 7, 1928, a bakery in Chillicothe, Missouri introduced pre-cut bread
using the automatic bread-slicing machine, invented by Otto Frederick Rohwedder.
While the bread initially failed to sell, due to its "sloppy" aesthetic, and the fact it
went stale faster (Latson, 2015), it later became popular. In World War II bread
slicing machines were effectively banned, as the metal in them was required for
wartime use. When they were requisitioned, creating 100 tonnes of metal alloy, the
decision proved very unpopular with housewives. World War II directly affected
bread industries in the UK. Baking schools closed during this time so when the war
did eventually end there was an absence of skilled bakers. This resulted in new
methods being developed to satisfy the world’s desire for bread. Methods like: adding
chemicals to dough, premixes and specialised machinery. These old methods of
baking were almost completely eradicated when these new methods were introduced
and became industrialised. The old methods were seen as unnecessary and financially
unsound, during this period there were not many traditional bakeries left (Time,
2017).
The bakery industry today offers immense opportunities for bakers,
decorators, trainers, process, managers, distributors and many has increased the jobs
for the people. It provides vast employment opportunities for the youth also. Trained
professionals are getting high salaried jobs in India as well as abroad. India’s exports
of the bakery products have also risen which is helping in the growth of the economy
of the country. Bakery products have also given some relief to the women. In the
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early days females had to prepare food all the time with no time to yet relief. But
now-a-days as women are also getting professionals, they have less time to give at
home and family. The growth of the bakery products has reduced the responsibilities
of kitchen. They can now easily prepare food with the readymade food items which
need less labour and time. Increased awareness of the bakery products has reduced the
burden of the females in the society. People going out of home can easily satisfy their
food needs. Thus the bakery products have solved many problems of the people (Giri,
2016).
Bakery products also solve the problem of preservation. These products can be
stored for few days and do not easily get spoiled. As other food items lose their taste
when stored for some time but the bakery products do not lose their taste. People
living away from home can easily store these food items. The bakery products have
reduced the dependence on females for satisfying their food requirements. Increased
demand for the bakery products has helped the primary sector of the country i.e.
agriculture. Almost all the bakery products are made from the wheat and dairy
products. There is a great demand of these agricultural items all over the world.
Farming has become now more commercial. Farmers grow the crop and sell at
competitive prices in the national as well as international market. These bakery
products have brought prosperity to the farmers all over the country. Likewise, the
demand for the dairy products has also experienced a hike all over the world. The
cattle owners get attractive prices for their products. Milk and milk products are in
great demand from the last few decades. Increased earning has improved the standard
of living of the people of rural areas which helped in the overall development of the
country as more than half of the population of our country is living in rural areas. The
agricultural and dairy products have raised the quantity of exports of the country and
thus contributed in balancing the trade of the country. Bakery products have
globalized the market facilitating the producers to sell their products profitably (Sahi,
2012).
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non-personal or mass communication. Those individuals could be consumers, people
who buy products or business people who would buy large quantities of products for
resale in their stores. Mass communication in advertising is very important, because
the whole purpose of advertising would be getting the message across to those who
will purchase goods, to consumers. Advertising also helps in promoting services and
ideas. In terms of the channel of communication, its purpose is to be a medium. An
advertising medium is any non-personal means used to present an ad to its target
audience. For example, we have radio advertising, television advertising, newspaper
ads, and more. Advertising is just one type of marketing communications. Marketing
communications are the various efforts and tools used to communicate with customers
and prospects, including solicitation letters, newspaper ads, event sponsorship,
publicity, telemarketing and many more (McDonald and Scott, 2007).
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advertisement was recognized as the source of revenue for the media even while
publishing Gorkhapatra. Since then, in the name of public notices, government orders
and sanad advertisements were seen in the newspaper. The first commercial
advertisement was published in Gorkhapatra in 1984 BS. The advertisement thanked
Shree 3 Maharaj and announced on the opening of new petrol shop. In 1985 BS,
another commercial advertisement was published in the name of ‘The Himalyan
Motor Trading Company’. Bhet Narayan of Kathmandu provided both the above
advertisements.
The Rana Regime came to an end on 7th Falgun, 2007 BS. This resulted in the
establishment of democratic system in the country. The new political system in the
country brought significant changes in media, especially towards the rise in quantities
of newspapers and rise in readership, these factors created an environment for
advertising in the newspapers. But lack of industrialization and economic
development in the country made it difficult for the publications to get independence
and develop professionalism. The newspapers were either supported by the political
parties or were government owned.
In 2027/2028 music was used for advertising. The early advertising was
mostly broadcast live but after the construction of Photo-concern studio,
advertisement was then recorded here. Likewise, Ratna Recording Sansthan operated
advertising service in the country and paid the total cost. Television advertising
started after the establishment of Nepal Television on 17thMagh, 2041, test
transmission was conducted from 29th Shrawan 2042 to 14th Poush 2042. During this
period advertising was broadcast from the Nepal Television.
The situation after the restoration of democracy in 2046 (1990) paved the way
to the development of private media. The open economic and market policy,
international relationship, credibility of print media, rise in the number of newspapers
and the electronic media all increased the volume of advertising. Today advertising
has been recognized as the cornerstone for development of media.
The rise in newspapers, FM radios and television channels after 1990 has
brought competition in the media in search for more advertisement. Towards the
beginning of 1990s government owned media were main hosts for advertising
products because of their large circulation, reach and capacity. But after the decade of
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1990’s, the rise in private media has enlarged the market and transaction of
advertisement. However, there have not been significant studies on the market of
advertising in Nepal even today.
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A consumer´s purchases are influenced by four major psychological factors:
Motivation, perception, learning ability, as well as beliefs and attitudes. When honey
and its usage are considered, often consumers’ attitudes are very positive due to its
health effects. Despite the fact consumers do not always act in accordance with their
attitudes (Pohjalainen, 1994).
Consumers feel the bakery product as an adjunct to their diet and they do not
classify it as a compulsory part of their daily diet. Therefore, there might not exist
strong motivation to purchase the bakery product, even though consumers are aware
of its good qualities. This makes it even more important to create a need and motivate
a consumer to purchase bakery products (Pohjalainen, 1994).
Advertising is costly; often its effects are uncertain, and sometimes it takes a
while before it makes any impact on consumers’ buying behavior. It is for these
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reasons that many companies think it appropriate, occasionally to reduce expenditures
on advertising or to entirely eliminate it. On the other hand, some companies
sometimes consider it unnecessary to advertise when their brands are already enjoying
great success without advertisement. Such behavior implicitly fails to consider the
fact that advertising is not just a current expense or mere exercise but an investment.
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2. To analyze the impact of advertisement on buying behaviour of customer
towards bakery products.
3. To determine the impact of product brand on buying behaviour of customer
towards bakery products.
4. To find out the impact of layout on buying behaviour of customer towards
bakery products.
5. To determine the impact of location of bakery industry on buying behaviour of
customer towards bakery products.
This study has been carried out to find out the impacts of advertisement on
buying behaviour of customers towards bakery products. In this study, price,
advertisement, brand, layout and location have been taken as the independent
variables while customers’ behaviour has been taken as the dependent variable. On
the basis of the objectives of the study, a conceptual framework has been developed
which is as follows:
Independent Variables
- Price
- Advertisement Dependent Variable
- Brand - Customer Behaviour
- Layout
- Location
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Price
A value that will purchase a finite quantity, weight, or other measure of a good
or service. As the consideration given in exchange for transfer of ownership, price
forms the essential basis of commercial transactions. It may be fixed by a contract,
left to be determined by an agreed upon formula at a future date, or discovered or
negotiated during the course of dealings between the parties involved.
Ollila (2011) stated that high food prices can be a barrier to healthy eating if
food products are perceived as expensive and the consumers are not willing to accept
the higher prices. Understanding the role of price in food purchase situations is
important, but only a few studies document attitudes towards expensiveness or
cheapness in foods. In this thesis, the role of food price in food choice and consumers’
attitudes towards food prices were investigated and the aim was to measure the food
price attitudes. Food price attitudes were hypothesized to have an impact on
consumers’ willingness to pay judgments and their willingness to buy premium-priced
food products. Using qualitative data consisting of 40 thematic interviews the
experiences of the expensiveness and cheapness in foods were explored by using
functional food products as a target product category.
Advertisement
Advertising is a means of communication with the users of a product or
service. Advertisements are messages paid for by those who send them and are
intended to inform or influence people who receive them.
Ampofo (2014) seeks to examine the effects of advertising on consumer
buying behaviour considering demand for cosmetic products by residents in and
around Nagarabhavi, Bangalore. Using a sample of 100 respondents of mostly the
young, we ran regressions and found that advertising does influence expenses
incurred on cosmetics products but much influence on the purchase of cosmetic
products results from one’s income or pocket money available, and other factors like
price of the product, the brand and other people’s recommendation concerning the
product. We concluded that, advertising satisfies the needs of the firm and the wishes
of consumers. Its role cannot be replaced by any other means. Therefore firms must
strategize and know when and where they should advertise. The consumers need to be
informed about products and until that is done, the products of firms will still be in
stores with no demand for them.
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Brand
A brand is a unique design, sign, symbol, words, or a combination of these,
employed in creating an image that identifies a product and differentiates it from its
competitors.
Kumar et al. (1987) observed the factors influencing the buying decision making of
200 respondents for various food products. Country of origin and brand of the
products were cross- tabulated against age, gender and income. Results revealed that
the considered factors were independent of age, education and income. The brand
image seemed to be more important than the origin of the product, since the
consumers were attracted by the brands.
Layout
Layout is the way that something is arranged. The bakery industry is affected
by many of the current trends and naturalness (clean la-bel) and wellbeing is
emphasized in regard to bakery products. New products and product improvements
are continuously being launched. Because of this, advertising becomes an important
aspect especially when a large amount of purchasing decisions are done in-store. One
of the main ways to advertise products in the store are through in-store dis-plays.
Understanding how consumers actually look at in-store displays and how effective
they are in changing consumer behavior into a purchase decision at the point of
purchase will inform the best execution and layout of the display. The main aim of the
study was to get a better understanding of what an effective in-store display in
consumer decision making is. This was done by assessing three different aspects of
in-store displays: (1) the visual attention attracting ability, (2) if the intended
communication and content is comprehensible on the in-store display and (3) if the in-
store display can positively influence consumer decision making. The primary
methodology included usage of eye-tracking equipment with a complementary
questionnaire and the research was conducted by way of a two-phase experiment
(Ekman, 2016).
Location
Location is a place or position of a place or thing. Souki, Reis and Moura
(2015) show that the location of bakeries is an essential aspect for consumers in the
purchase decision process, because establishes the distance from consumers’ home to
the bakery. Thus, 76.8% of consumers prefer to buy baked products at bakeries near
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their homes, and 12.0% prefer to buy them at bakeries near their workplaces. In
addition, 11.0% of them use to buy them at bakeries located along the way they used
to go through. Only 0.2% of them did not provide any answer. The mean distance
from consumers’ home to the closest bakery they go often is about 2.46 kilometers.
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of different bakery products. The sample size was 55 customers of different bakery
products.
For this research purpose, both the primary and secondary sources were used
for data collection.
i. Primary Source
Primary data have been collected using structured quantitative strategy.
Survey research design was selection to collection primary data.
ii. Secondary Source
Secondary data were collected different websites of online published journals,
articles, books, unpublished thesis. These were obtained through library, e-library and
different Google search engine.
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1.7 Limitations of the Study
3. This study is limited to only the customers of different bakery products. Thus, the
result will not be applicable to other groups of bakery customers.
5. The data are collected from the customers of bakery products in Birendranagar
Municipality of Surkhet.
Chapter I: Introduction
Chapter I has included the background of the study, justification of the study,
objective of the study, research question of the study, conceptual framework of the
study, research methodology, limitations of the study and organization of the study.
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