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VEENA, V.
PALB 3140
VEENA, V.
PALB 3140
The endless thanks go to Lord Almighty for all the blessings he has showered onto me,
which has enabled me to write this last note in my research work. During the period of my
research, as in the rest of my life, I have been blessed by Almighty with some extraordinary
people who have spun a web of support around me. Words can never be enough in expressing
how grateful I am to those incredible people in my life who made this thesis possible. I would
make an attempt to thank them for all the help during my research in the department a period
I will treasure.
At this moment of accomplishment, first of all I would like to sincerely express my great
gratitude to Dr. P. K. Mandanna, Professor and University Head, Department of
Agricultural Marketing, Cooperation & Business Management, UAS, GKVK, Bengaluru and
the Chairman of my Advisory Committee I am very much thankful to him for his tremendous
patience in mentoring me to become an eligible researcher, continuous support, wonderful
encouragement and providing me with the invaluable advice on improving my thesis. It was
my fortune to have an opportunity to work under him and I sincerely and proudly confess that
it has been a great privilege for me to have been one of his students.
My special thanks to the unknown reviewers of my thesis, for accepting to read and
review this thesis. I wish to thank the authors, developers and maintainers of the open source
used in this work. I would like to appreciate all the researchers whose works I have used,
initially in understanding my field of research and later for updates. I would like to thank
people who have taught me starting with my school teachers, my undergraduate teachers, and
my graduate teachers
No research is possible without the Library, the Centre of learning resources. I take this
time to express my gratitude to all the library staff for their services.
Finally I would like to thank all those who have directly/indirectly helped in achieving
this endeavour.
Bengaluru
July, 2015 (VEENA, V.)
CONSUMER PREFERENCE FOR SAVORY SNACK FOODS IN BENGALURU
CITY
VEENA, V.
ABSTRACT
Savory snack foods are those foods eaten between main meals. Recently domestic
and multinational companies are involved in the production of savory snack foods from
the government encouragement. The present study made an attempt to analyze the
purchasing behavior, factors influencing consumption and promotional strategies used for
savory snack foods in Bengaluru city. Total samples of 90 consumers were interviewed
for the study. All the sample consumers were aware of savory snack foods. The
awareness level for potato chips was cent percent. Maggie noodles, banana chips, Dairy
Milk, Marie biscuit, Munch, Oreo, Kitkat and Bourbon biscuits awareness level was
highest among the consumers. Maggie noodles tops among the consumption of savory
snack foods. Majority of the consumers were mainly influenced by advertisements in TV.
Modern convenient retail stores were preferred by the consumers for purchasing
chocolates, biscuits, chips and noodles. The important attributes considered while
purchasing savory snack foods were product quality, brand popularity, product range and
promotional strategy. Multiple Linear Regression Analysis indicates that family size and
monthly household income have significant influence on consumption of savory snack
foods. The most important reason for consumption of savory snack foods by the
consumers was due to its delicacy. Eating at home was the most preferred place for
consumption of savory snack foods. Attractive packaging and creative advertisements
were the most important factors influencing the savory snack foods consumption. The
consumers of savory snack foods attached high degree of importance to taste hence, food
processing companies shall focus on regional taste.
I INTRODUCTION 1-7
IV RESULTS 27-47
V DISCUSSION 48-59
APPENDIX 71-78
LIST OF TABLES
Table Page
Title of the table
No. No.
3.1 List of savory snack foods (SSFs) selected for the study 21
Figure Between
Title of figure
No. Pages
5. Cattell’s scree plot for attributes considered while purchasing SSFs 34-35
Plate Between
Title of the plate
No. Pages
Factors such as working away from home, working mothers, and food varieties
(both local and international) served at many premises encouraged the practice of eating-
out. This has fuelled the demand for convenience foods as consumers no longer have
either the knowhow or the time to make these products at home. At the same time, the
spurt in disposable incomes has resulted in the increased exploration of the various
savory snack brands available in the market, whether traditional or western. Consumers
are also trading up from unbranded to branded savory snacks, especially in the traditional
savory snacks segment, given the heightened concerns for quality and the greater
availability of branded options. This has resulted in branded savory snacks becoming an
all-time food for the munching needs of consumers.
Growing consumer base: Snacking is not just about children or youth. Snacking is a
long-term trend and the future of eating (www.foodprocessing.com/articles). The
youngest age group had the highest prevalence of snacking and taking of nutritional
More variants and options: There was a time when branded savory snacks were mostly
potato chips. However, players have innovated over time to offer new products like
extruded savory snacks besides expanding their traditional savory snacks offerings, e.g.
murukku, chakoli, mathri, gathiya, samosas etc., which has seen several consumers
upgrade from the unbranded savory market to branded savory products. Also, given the
increasing concerns surrounding ‘unhealthy’ snacking, players have positioned savory
brands and products around ‘health’, e.g. baked, roasted, multigrain, low fat, etc., to reach
out to the health-conscious segments. This has helped them to target a larger consumer
base across the country.
Greater availability and affordability: Branded savory snacks are now easily available
across both modern and traditional retail formats, from supermarkets and mom-and-pop
stores to small tea stalls, office canteens, paanwalas etc. Most savory brands are available
in multiple pack sizes including small ones leading to higher affordability and increased
category presence and more product trials.
Fat reduction: Most savory snacks have the excellent flavor because of the frying. When
thin slices of potato and other materials are fried, they absorb up to 40 per cent fat in the
final snack. This contributed to a large intake of calories that are blamed in many
ailments. Fat reduction can be achieved by using optimum frying conditions as well as
using certain emulsifiers, starch derivatives etc. Using less viscous oils also give less fat
absorption. Baked chips with much lower fat contents have become a huge success in
European market especially in the UK.
Saturated fats are also replaced with mono-and poly-unsaturated oils such as groundnut,
olive, safflower, soya, sunflower, rice bran etc. There are advantages of use of solid fats
in snacks including finer qualities like crispness, brittleness, crumbly texture etc., in
savory snacks and softness in cakes and doughnuts. Thus, when oils are used for health
reasons, it must be remembered that these products are consumed by people because they
give health. Due to their sensory properties, it is a challenge to maintain the original
properties and use ingredients and processes that are healthy.
Salt reduction: Savory snacks are preferred because of their salty and spicy taste with
their aroma. Salt have been implicated in hypertension and cardiovascular diseases, so its
reduction has been advised in daily intake. Snacks being major source, many snack
manufacturers are offering low salt variation for those who want to cut their sodium
intake. Some reduce the amount of salt added while others use salt substitutes. There are
also subtle changes in the formulations necessitating less salt in the products.
Sugar reduction: Many consumers are trying to restrict sugar intake for various reasons
including calories, diabetes etc. Many products started appearing with low or no sugar.
Use of artificial sweeteners is possible to some extent but since sugar not only contributes
to sweetness but also to bulk and texture, some additional ingredients are needed that
would provide the same product characteristics. Indians like more sweetness in their
sweets than others. Hence, making the change in this segment is more difficult.
Fibre: has become important in many savory snacks and can be easily derived from
many whole grains like wheat, oats and some of the pulses. Fibre and whole grains have
shown effectiveness in reducing risks due to heart disease, stroke, cancer, diabetes,
Confections which include sugary sweets, such as chocolate, hard candy and
gums-comprise the biggest sales contribution to the overall savory snack category in
Europe ($46.5 billion), Middle East/Africa ($1.9 billion) and North America ($27.7
billion). Refrigerated snacks comprise almost one-third of snacks in Asia-Pacific ($13.7
billion) and cookies and snack cakes make up more than one-fourth of total snacks in
Latin America ($8.6 billion).
Raghavendra et al. (2009) examined the preference for and consumption pattern
of meat in Dharwad district. The study reveals that the most important factor considered
by urban households while purchasing meat was the nutritive value followed by taste,
freshness, tenderness, source, price, fat content and ease of availability. In rural area, the
factors in the descending order of importance were taste, nutritional value, price,
freshness, source, fat content, tenderness and ease of availability.
Ali et al. (2010) analyzed the buying behavior of consumers with respect to food
and grocery items in Gomtinagar area of Lucknow city. The preference of the consumers
clearly indicates the priority for cleanliness/freshness of food products followed by price,
quality, variety, packaging and non-seasonal availability. The consumers’ preference of
market place largely depends on the convenience in purchasing at the market place along
with the availability of additional services, attraction for children, basic amenities and
affordability. Results suggest that most of the food and grocery items were purchased in
loose form from the nearby outlets. Fruits and vegetables were mostly purchased daily or
twice a week due to their perishable nature, whereas grocery items were frequently
purchased.
Kazmi (2012) analyzed consumer perception and buying decision for pasta in
Pakistan. The study measures the development of perception through different variables
and identified the factors which stimulate buying decision of consumer. Among various
variables awareness and availability of the product were the two variables which have
strong effect on popularity and sale of pasta product.
Mittal and Ravinder (2012) studied consumers buying behavior and perception
towards chocolate brands and its consumption. The study was carried out in India. The
various attributes, that different buyer seek while making purchase of chocolates of
different size and quantity for different purposesall together with significant differences
in favorite brand, flavor, price and place of buying. Also examined the various degree of
relationship that exist between the different attributes of the product, that consumer
favours and the brand loyalty that consumers have towards liked brand.
Uma et al. (2012) conducted a study on noodles buying behavior from organized
retail outlets in Coimbatore city. The statistical tools such as ranking and
multidimensional scaling technique concludes that the availability of wide range of
products was the major factor influencing the respondents’ preference followed by
Baskar et al. (2013) examined the consumers buying behavior towards instant
food products in Cuddalore district, Tamil Nadu. It proves that consumers buying
behavior is influenced by the traditional way of manufacturing process, traditional
ingredients and the availability of products next to their shops. Interestingly the study
reveals that consumers are not ready to change over their brand.
Burlakanti and Srinivas (2013) studied the most influential factors of consumers’
buying pattern at organized and unorganized retail stores in Kakinada city, Andhra
Pradesh. Recent emergence of organized retailing and its huge customer attraction and
retention marketing strategies, the adoption of technology and patronizing retailing shops
and value added services have created a market space for them in India. The existing
unorganized retailers have also started to add more number of product mix to existing
selling assortment to create a feeling of one time and comprehensive shopping in the
minds of the consumers. The consumers’ tentative buying patterns become a “riddle” for
the organized and unorganized retailers. Quality and services offered were most
important factors of both organized and unorganized retailers have greatest impact on
consumers’ buying pattern.
Chong (2013) studied the factors influencing the purchasing behavior of organic
foods in Malaysia. The study examines six factors (knowledge and education, health
consciousness, government support and policy, environment concerns, perceived values,
attitudes and habits) to intention to purchase organic food. The outcomes distinguish that
all of the factors have a significant positive association with organic food intention to
purchase. The combination of the factors can predict with 41.1 per cent, the intention to
purchase organic food. The results proposed that the strongest factors are knowledge and
education, environment concerns, government support and policy.
Neto and Melo (2013) analyzed the factors that influence children’s food
purchasing behavior in Natal of Brazil. It was seen that reinforcement stimuli
(consequent stimuli) are more important to the children’s decisions than antecedent
stimuli and that utilitarian consequences are more influential than informational
Jafersadhiq (2014) examined the consumers buying behavior with the help of
consumer awareness towards the instant products, reason for purchasing and factors
influencing to purchase. This study was carried out in Coimbatore. It proves that
consumers buying behavior was influenced by the traditional way of manufacturing
process, traditional ingredients and the availability of products next to their shops.
Interestingly the study revealed that consumers are not ready to change over their brand.
The study further confirms the findings of the study by Baskar et al. (2013).
Geetha (2011) analyzed the consumption pattern of the households in rural and
urban areas of Coimbatore to understand the changes that was taking place in the
consumption habits among the population. The study revealed a significant differentials
in consumption expenditure not only between the groups (rural vs. urban) but, also within
the group. Low expenditure elasticity for cereals and high expenditure elasticity for other
food items signifies a shifting food consumption pattern in both rural and urban areas as
income increases.
Seo et al. (2011) examined fast food consumption status among middle school
students in Seoul to explore the factors influencing fast food consumption behavior of
middle-school students by applying theory of planned behavior. The findings of the study
revealed that friends were the most influential people for the participants' of fast food
consumption. Results also show that higher intention, perceived behavioral control,
attitude, and subjective norm led to higher rates of fast food consumption.
Steyn et al. (2011) conducted a study on factors influencing the use of street foods
in South Africa. Result shows that consumption of fast foods and street foods were
influenced by a number of socio-demographic factors including ownership of major
home appliances. Frequent fast food consumers had a significantly higher dietary score
while frequent street food consumers had a significantly lower score.
Kaur and Dhindsa (2012) examined the consumption pattern of rural poor
households in Punjab. The expenditure elasticities were found to be higher for milk,
vegetable, fruits and education which depicts that poor households intended to increase
share of their income on these items. The study concludes that pattern of expenditure
Prabhat and Begum (2012) investigated food consumption pattern and nutritional
status of women laborers of coastal regions of Karnataka. The result shows that majority
of the participants (79 %) were daily wagers and 21 per cent were on monthly payment.
Among the non vegetarian foods (82 %), sea foods predominated and consumed daily.
Fruit consumption was high (69.4 %), curd and greens were obligatory items for lunch
and dinner. Type of payment and diet type (vegetarians/non vegetarians) was found to
exert influence on nutritional status of women. The study reveals that food behavior
pattern is strongly associated to the culture and less influenced by either the diet type or
pattern of payment.
Ali et al. (2013) studied factors affecting consumption of edible oil in Pakistan.
Increase in income, population growth, urbanization, brands liking and disliking were the
factors affecting consumption of edible oil. The results from primary data suggested that
price, income, family size and monthly income significantly affected consumption of
ghee and oil.
Sandhar et al. (2013) in their study focused on the preference and consumption
pattern of soft drink and fruit juice on the basis of different age group of people living in
Indore city. The study concludes that there exists a significant difference between the
Arnas (2006) in his study examined television advertisements and children’s food
consumption while watching television and desire to purchase food products that they see
on television advertisements in Turkey. It was found that the time devoted to children’s
programs was approximately 121 minutes and the advertisements during the period were
approximately 35 minutes. A total of 344 of the 775 television advertisements shown
were related to food. It was also found that most of the food advertisements were about
candy/chocolate, chips, milk and milk products such as cheese, yoghurt, and breakfast
cereals. The results also revealed that 89.6 per cent of the children either drank or ate
something while watching television and the food they consumed most while watching
television were fruits, soft drinks, popcorn/nuts, cake, chips and candy/chocolate. About
40.3 per cent of the children asked their parents to purchase food products that they saw
on the television advertisements and that 8.9 per cent of them argued with their parents
and/or cried to buy that particular product. It was found that children tended to request
more sweetened products such as candy, ice-cream, biscuit, cake or soft drinks.
Kazemi and Esmaeili (2010) conducted a study on the role of media on consumer
brand choice, a case study of chocolate industry in Pune city of India.The survey of 538
randomly selected consumers examined the role played by media on consumer brand
choice of Cadbury Dairy Milk (chocolate brand). Results revealed that 37.7 per cent of
the consumers prefer Cadbury Dairy Milk more than other brands of chocolate. The
major reason for brand preference was advertisement (52.6 %). TV advertising was
preferred by 78.8 per cent of the respondents of all the media used.
Kumar et al. (2011) observed advertising and consumer buying behavior in Agra
city. The study examined the role played by advertising in influencing consumers buying
behavior for Nestle. Results reveal that consumers were highly influenced by TV
Chiciudean et al. (2012) conducted a study on the factors of influence over the
consumer buying behavior for organic food in Cluj-Napoca County of Romania. Results
indicate that the factors of influence over the consumers depend on gender and age. The
organic food is mostly appreciated for its taste and quality. Women are also influenced by
price and by the trendy fact of being organic. Major differences have been noticed
between people with different age regarding promotions, recommendations from
acquaintances and advertising. Youngsters are more influenced by advertising than any
other group of age while adult people are influenced by promotions. The point of sale is
very important to consumers while purchasing organic food.
Deliya and Parmar (2012) examined the role of packaging on consumer buying
behavior in Patan district of Gujarat. Packaging elements like packaging color,
background image, packaging material, font style, design of wrapper, printed information
and innovation were considered as predictors. Due to increasing self-service and
changing consumers’ lifestyle the interest in package as a tool of sales promotion and
stimulator of impulsive buying behavior has increased. The study reveals that package
performs an important role in marketing communications, especially in the point of sale
and could be treated as one of the most important factors influencing consumer’s
purchase decision. The findings of this study are contrary to the findings by Wai-Leng
(2010).
Chakrabortty et al. (2013) analyzed the effects of sales promotion and advertising
on consumer’s purchase behavior in Bangladesh. The study found out that sales
promotion is most effective on the consumers who travel through the peripheral route and
it can leads the consumer’s mind to brand switching. The study revealed that sales
promotion and advertising is much more effective in low involvement category products
where a simple promotional signal can lead the consumers to buy a product.
Kaur and Vohra (2013) analyzed preference for promotional strategies directed at
children in Amritsar city of Punjab. The study shows that free gifts highlighted on
packaging is the most effective promotional strategy followed by foods assortment, co-
operative sales-force, ease in accessing child's favorite foods and placement of packaged
foods at reachable shelf locations. The results show that food purchase requests of male
children are much more strongly affected by promotional strategies as comparison to
female children.
Khan and Syed (2014) analyzed the response of children’s attitude towards
television advertising. The study focuses exclusively on high school children in Karachi.
Most advertising agencies target children through advertisements especially when
advertising consumer products like children’s toys, chocolates, confectionary bars, tooth
paste etc. The findings of the study reveal that most important factor that highly influence
on children attitude was TV advertisement.
Bengaluru is known as Granite city and greenery for its granite exports along with
software and flowers. Bengaluru has already called the Electronic city of India but, the
establishment of the Silicon park on the out skirts has converted it into the Silicon city of
The city of Bengaluru lies towards the southeast in the South Indian state of
Karnataka. On the northeast of the city is Kolar district, on the northwest is Tumkur
district, on the southwest is Mandya district and on the southeast is the state of Tamil
Nadu. It lies at an altitude of approximately 920 m (3,018 feet). Spread over an area of
2190 sq. km, the city stands positioned at 12.97° N 77.56° E.Bengaluru receives about
970 mm of rainfall annually August, September and October were known to be the
wettest months.
Bengaluru has a handful of freshwater lakes and water tanks, the largest of which
are Madivala tank, Hebbal lake, Ulsoor lake, Yediyur lake and Sankey tank. Due to its
highest elevation, Bengaluru enjoys a pleasant and equable climate throughout the year.
The Peninsular Gneissic Complex (PGC) is the most dominant rock unit in the area and
includes granites, gneisses and migmatites, while the soils of Bengaluru consist of
red laterite and red, fine loamy to clayey soils. Vegetation in the city is primarily in the
form of large deciduous canopy and minority coconut trees.
Bengaluru, once known as Pensioners paradise is now one of the fastest growing
city of India, better known as Silicon Valley of India. Bengaluru has been described as a
gateway to new global frontiers and a harbinger of a new global labourforce that works in
cyberspace and that, like much of the world's financial markets, operates beyond the
reach of governments. Bengaluru is the fastest-growing Indian metropolis making it
India's third-largest city and fifth-largest metropolitan centre in the world. With the boom
of IT industries the city's workforce is predominantly non-agrarian, with only 6 per cent
being engaged in agriculture-related activities.
1. Chocolates Dairy milk, Nut crunch, Kitkat, Toffee crisp and Munch.
The schedule consists of both general and specific information of the sample
respondents. The general information from the individual respondents collected were on
their social, economic characteristics like name, age, education, domicile status,
occupation, food habits, family income, monthly expenditure on food as well as savory
snacks and family composition. The specific information includes particulars regarding
the awareness on SSFs, influencers of purchase decision, nature of purchase decision,
frequency of purchase and consumption, factors influencing consumption of savory
snacks and promotional strategies used by food manufacturers.
3.4.1.3 Average
A single value (as a mean, mode, or median) that summarizes or represents the
general significance of a set of unequal values.
Where,
Rij - Rank given for the ith factor by the jth individual
Nj - Number of factors ranked by the jth individual.
The percentage position is converted into scores by referring to the table given by
Henry Garett (1969). Then for each factor the scores of the individual consumers were
added together and divided by the total number of consumers for whom scores were
added. These mean scores for all the factors were arranged in descending order and the
most influencing factors were identified through the ranks assigned.
The unique factors are uncorrelated with each other and with the common factors.
The common factors themselves can be a linear combination of the observed variables.
A 5‐point scale was used to know the impact of attractive packaging on purchase
behaviour for SSFs. The scale is ranging from “Strongly Disagree” on one end to
“Strongly Agree” on the other with “Neither Agree nor Disagree” in the middle. Each
level on the scale is assigned a numeric value or coding, usually starting at 1 and
incremented by one for each level. For example:
𝐴𝑖𝐽
Standard Score (Si) = ∑𝑛𝐽=1 ( 𝐼𝑚𝑎𝑥−𝐼𝑚𝑖𝑛 ) × 100
Factor Scores: The summation of subject’s responses × factor loadings, which mean the
extent of each subject being explained by that factor.
Factor loadings: It means the correlation of each variable with the underlying factor.
Eigen values: It measures the variance in all the variables which is accounted for by that
factor.
Scree plot: A scree plot displays the Eigen values associated with a component or factor
in descending order versus the number of the component or factor.
Factor rotation: It is the process of manipulation or adjusting the factor axes to achieve
a simpler and pragmatically more meaningful factor solution.
Correlation matrix: A matrix giving the correlations between all pairs of data sets in the
analysis.
Kaiser Meyer Olkin (KMO): A statistic that indicates the proportion of variance in
variables that might be caused by common underlying factors. It ranges from 0 to 1.
Seventy two per cent of the consumers were graduates or post-graduates. The
occupation status indicates that twenty nine per cent were students followed by private
sector employees (21 %). Sixty five per cent of the sample consumers were single and 87
per cent belong to nuclear family.
Three fourths of the sample consumers were (74 %) having medium size family
with 4 to 6 members. The monthly household incomes vary across income ranges. There
were 14 sample households with an income of above Rs. 2 lakh per month. About 21 per
cent of the consumers had income ranging from Rs. 30,000 to 50,000. The expenditure on
total food and on SSFs directly depends on the household income. It was observed that 70
per cent of the consumers spent on an average Rs. 1000 to 8000 per month on total food
consumption. Similarly, 60 per cent of the consumers spent on buying SSFs of Rs. 500 to
2000 per month.
1. Advertisements in TV 76 84.44
3. Children 63 70.00
6. Parents 48 53.33
80
70
60
Percentage
50
40
30
20
10
4.2.4 Preference of different types of retailers for purchase of savory snack foods
From the Table 4.5 it can be seen that modern retail formats and departmental
stores were preferred by the consumers for purchasing chocolates, biscuits and chips. 44
per cent of the sample consumers buy sandwich from retail shops in shopping malls.
Apart from modern retail formats 50 per cent of the consumers buy chips from kirana
stores and bakeries. More than half (53.33 %) of the consumers indicated that they buy
noodles from departmental stores (Fig. 4).
All together 16 attributes were identified such as quality of the product, low price,
nutrition, taste, packaging, brand, location of outlet etc. These factors determine the
buying behavior. The factors are listed vertically and horizontally 8 major attributes were
identified and they are product quality, brand popularity, product range and content,
promotional strategy, affordability, attractive packaging, healthy and accessibility and
convenience. The correlation matrix of rotated factor loadings is presented in Table 4.7.
The table reveals that quality of product were substantially loaded on factor (component)
1, while taste, brand loyalty, absence of additives/chemicals, and products are well
recognized were substantially loaded on factor 2; product range. Similarly, nutrition,
healthy and fits my budget was substantially loaded on factor 7; location of outlet was
substantially loaded on factor 8.
60
50
40
Percentage
30
20
10
Frequency of purchase
Table 4.5: Preference of different types of retailers for purchase of savory snack foods
(n =90)
Table 4.6: Kaiser-Meyer-Olkin measure and Bartlett’s test for adequacy of factor analysis
Difference 120
Significance 0.000
33
34
Sl. Component
Attributes
No. 1 2 3 4 5 6 7 8
1. Quality of product 0.791 0.134 0.171 0.173 0.000 0.030 0.288 0.022
2. Low price -0.046 -0.087 0.104 0.103 0.865 0.004 -0.019 0.160
3. Nutrition 0.150 -0.023 -0.095 0.200 0.021 0.079 0.776 -0.095
4. Taste 0.079 0.645 -0.182 0.410 -0.088 -0.146 -0.255 0.112
5. Packaging 0.051 -0.057 0.460 0.289 0.067 0.648 0.251 -0.034
Veena, V.,
6. Product range -0.148 0.142 0.586 0.329 -0.106 -0.220 0.033 0.311
7. Brand loyalty 0.145 0.621 0.184 0.064 -0.189 0.349 0.095 -0.250
8. Location of outlet 0.036 -0.023 0.059 0.073 0.122 0.082 0.120 0.877
M.Sc. (Agri.)
60 Chocolates
Biscuits
Sandwich
50
Chips
Noodles
40
Percentage
30
20
10
1. Yes 51 56.67
2. No 39 43.33
Total 90 100
1. Aware 90 100
2. Not aware 0 0
Total 90 100
Coconut Macaroon
Table 4.14: Awareness about the ill effects of savory snack foods
(n = 90)
Sl. No. Particulars Number of consumers Percentage to total
1. Yes 69 76.67
2. No 21 23.33
Total 90 100
Table 4.15: Personal experience of the ill effects of savory snack foods
(n = 90)
Sl. No. Particulars Number of consumers Percentage to total
1. Yes 27 30.00
2. No 63 70.00
Total 90 100
60
Chocolates
50 Biscuits
Sandwich
Chips
Percentage
40
Noodles
30
20
10
Frequency of consumption
1. Home 70.33 I
2. Travelling 60.31 II
4. Party 52.27 IV
5. Theatre 51.55 V
9. Park 45.33 IX
1. Delicious 65.01 I
5. Refreshment 52.37 V
6. Munching 49.02 VI
9. To relax 41.04 IX
1. Winter 34 37.78
2 Summer 14 15.56
3. Rainy 38 42.22
4. Spring 4 4.44
Total 90 100
38 %
Winter
42 % Summer
Rainy
Spring
16 %
1. Yes 56 62.22
2. No 34 37.78
Total 90 100
Gender classification of sample consumers indicates that male and female were in
equal proportion. Bengaluru city is one of the fastest growing and cosmopolitan cities in
India. This offers quality education with the literacy rate of 89 per cent. It was found that
about 72 per cent of the consumers were graduates and post-graduates, followed by PUC
(12 %). 10 per cent had completed higher primary education and 6 per cent had primary
education. It is interesting to note that none of the consumers were illiterates showing that
majority of the consumers are well educated. It was also observed that the consumers
with higher education are well aware of the SSFs. The similar findings were reported by
Bopanna (2010) and Khusrawy (2014).
About 66 per cent of the consumers were single and rest was married (34 %).
Majority (87 %) belonged to nuclear families while the remaining 13 per cent were
belonged to joint families. Results pertaining to family size show that 74 per cent of the
consumers were medium family size consisting of four to six members (parents, children
and grandchildren) followed by 22 per cent of them belonged to small family size
Household income and food consumption are directly related. Higher the level of
income there is a tendency among the consumers to spend more on food including SSFs.
The monthly household income of the sample consumers vary. Based on the income
seven groups are made starting from monthly gross income of up to Rs. 10,000 ending
with income above Rs. 2 lakh. It could be seen from Table 4.1 that the sample consumers
numbering 90 were well distributed among the 7 income groups. About 55 per cent of the
sample consumers had a monthly household income of above Rs. 10,000 and up to an
income of Rs. 1 lakh.
With respect to monthly total expenditure on SSFs, about 60 per cent of the
sample consumers spent on an average Rs. 501 to Rs. 2000 per month on buying SSFs.
18 per cent of the consumers incurred expenditure ranging from Rs. 2001 to Rs. 3000 per
month. 11 per cent of the consumers spent up to Rs. 500 on buying SSFs. About 15 per
cent of the consumers incurred expenditure ranging from Rs. 3001 to Rs. 5000. Only 2
consumers were spending above Rs. 5000 to buy SSFs. The above analysis indicates that
the sample consumers of all income range spending a substantial portion of their monthly
income on buying SSFs. Many of the SSFs are an integral part of the routine food being
consumed irrespective of the level of income. This means to say that there is a ready
market for SSFs are concerned. Siri (2012) also indicated in her results that majority of
the respondents whose monthly household expenditure on ready-to-eat food products
ranging from Rs. 1201 to 2400.
With respect to food type, majority of the sample consumers (63 %) were non
vegetarians. Among non vegetarians, 50 per cent were by birth while the remaining 13
per cent of the consumers were switched over to non-veg foods. The results of the study
are similar to the findings of Bopanna (2010).
Among the sample consumers, 42 per cent of the consumers purchased biscuits
weekly followed by daily and twice a week (17 %). Since, biscuits are also considered as
a part of regular food habits. Hence, most of the consumers plan to purchase biscuits for
their family consumption. Nearly 8 per cent of the consumers purchased as and when
they needed. 16 per cent of the consumers were buying on monthly basis.
More than 50 per cent of consumers purchase sandwich through planning and the
rest (47 %) were impulsive. It is quite obvious among the people of Bengaluru to
consume sandwich along with friends and relatives on special events and occasions. In
case of chips, exactly half (50 %) of the consumers purchase decision was both planned
and impulsive. In case of noodles, majority of the consumers opted for planned purchase.
This is mainly because of the reason that noodle forms part of breakfast food item,
especially housewife find it easy to prepare and lunch box filler.
5.2.4 Preference of different types of retailers for purchase of savory snack foods
Retailing business is undergoing changes owing to the entry of corporate retailing.
Along with traditional retailers, departmental stores, hyper markets, super markets,
convenience stores offer more brands, discounts, self service facility etc. Accordingly the
place of purchase is changing. Table 4.5 reveals that modern retail formats followed by
departmental stores were highly preferred by the consumers for chocolate, biscuits, chips
and noodles. This may be due to availability of wide range of chocolates, biscuits, chips
and noodles in all these stores. It was observed that consumers were purchasing sandwich
from retail shops in shopping malls.
In case of chocolates, 61 per cent of the consumers preferred to buy from modern
retail formats followed by departmental stores (23 %) and kirana stores (18 %). Nearly 11
per cent were buying from bakeries. Only 4 percent purchased from shops in malls. With
regard to biscuits, 48 per cent of the consumers would buy from modern retail shops,
followed by departmental stores (33 %), bakeries (31 %) and kirana stores (20 %). Only 3
per cent purchase sandwich from shopping malls followed by bakeries (19 %) and kirana
stores (14 %). In respect of chips, 33 per cent of the sample consumers preferred to buy
chips from modern retail formats followed by bakeries (27 %). 53 per cent of the
consumers preferred to buy noodles from departmental stores followed by modern retail
formats (29 %), kirana stores (19 %), and retail shops in shopping malls (11 %). Among
the sample consumers, only 4 consumers preferred to buy noodles from bakeries.
The Eigen values greater than one are considered for determining the number of
factors. Therefore, with the help of Cattell’s scree plot, the numbers of factors were
determined (Fig. 5). The Scree plot is an alternative method of identifying the number of
factors to extract via factor analysis as it displays the sharpest drop in the Eigen values of
the factors, which highlights that further factors would not explain a significant amount
of the variance of scale items. It can be noticed that the first eight factors has an Eigen
value of more than 1 and as such, only eight factors were retained. Altogether 16
attributes were identified such as quality of the product, low price, nutrition, taste,
packaging, product range, location of outlet etc. Among these major attributes retained
were product quality, brand popularity, product range and content, promotional strategy,
affordability, attractive packaging, healthy and accessibility and convenience.
Loading on factors may be positive or negative. The upper the loading the more
important is the factor. The correlation matrix of the rotated factor loadings is presented
in Table 4.7. The rotation of factors is calculated to give an idea of how the factors
initially extracted differ from each other and to provide a clear picture of which item load
on which factor. Rotation does not actually change anything but makes the interpretation
of the analysis easier. It could be observed that quality of product was substantially
loaded on factor (component) 1, while taste, brand loyalty, absence of
additives/chemicals, and well recognized products were substantially loaded on factor 2.
Product range and ingredients are displayed on the pack were substantially loaded on
factor 3. Advertisements were substantially loaded on factor 4. Low price and availability
of many flavors were substantially loaded on factor 5. Packaging and children preference
were substantially loaded on factor 6. Nutrition, healthy and fits my budget was
substantially loaded on factor 7. Location of outlet was substantially loaded on factor 8.
Factor 1 has only one variable, i.e. quality of the product and hence, labeled as
‘product quality’. A high score on this factor indicates that majority of the consumers
were conscious about the product quality while purchasing SSFs. Similarly, factor 2
collects variables that relate to consumer’s taste, brand loyalty, absence of
additives/chemicals, and products are well recognized which influences consumers
buying behavior. Therefore, this group of factors is labeled as the ‘brand popularity’. A
high score on this factor indicates that the consumers were also more concerned about
taste, brands and chemical free SSFs. Factor 3 collects variables that relate to the product
range and ingredients displayed on the pack. For this reason, the third factor is labeled as
‘product range and content’. A high score on this factor reveals that consumers were
equally concerned about the ingredients displayed on the label and range of products.
Factor 4 has only one variable i.e. advertisements. Therefore, this factor is labeled as
‘promotional strategy’. A high score on this factor indicates that advertisements have
high impact on the consumers. Factor 5 collects two variables low price and availability
of many flavors. Therefore, this factor is labeled as ‘affordability’. Consumers are more
The results of the factor analysis revealed useful insights into marketing of SSFs.
It can be summed up that consumers are well aware of the product quality, nutritional
requirements, price sensitivity, availability of flavors, attractive packing and proximity to
modern retail formats. Both organized and unorganized players are competing in the
SSFs segment, it is imperative that no company can neglect to address the
factors/attributes opined by the sample consumers. Manufacturers of these food products
will have to develop appropriate strategies focusing on the eight important components
identified in order to satisfy the complex customers’ aspirations and to increase sales.
Table 4.10 reveals the awareness level or not for SSFs by the consumers. As
mentioned earlier the SSFs selected for the study comprised of chocolates, biscuits,
sandwich, chips and noodles. It was observed from the table that cent percent of the
sample consumers were aware of SSFs. With respect to chocolates, the awareness level
for Dairy Milk was found to be highest with 98 per cent followed by Munch (95 %) and
Kitkat (92 %). 49 per cent of the consumers were aware of Nut Crunch. About 51 per
cent were aware of other brands. The awareness level for Toffee crisp was found to be
lowest (28 %). The above brands are popular and as such known to sample consumers.
With regard to chips, the awareness level for chips was found to be cent percent
followed by banana chips (99 %), corn chips (66 %), tortilla chips (30 %) and curly
peanut puffs (22 %). Majority (99 %) of the consumers indicated that their awareness
level for Maggie noodles was very high. 65 per cent of the sample consumers were aware
of Cup noodles followed by Yippie (57 %) and Top Ramen (36 %).
Maggie was found to be the toast among 98 per cent of the consumers followed
by fried vermicelli (47 %) and Cup noodles. This is because of increase in number of
both working men and women in a family. As it is easy to consume and prepare noodle is
a favorite choice for the homemakers. 24 consumers indicated that they consume Instant
noodles. Top Ramen was consumed by 10 sample consumers.
As far as chips are concerned the awareness level for Lay’s was found to be high
(67 %) among the sample consumers. 29 per cent were aware of Bingo and 13 per cent
were aware of Pringles. While the awareness level for Uncle chipps, Doritos, Cheetos and
Ruffles was found to be low. About 18 per cent of the sample consumers were aware of
Knorr Soupy and Chinese Hakka noodles.
With regard to biscuits, 54 per cent of the sample consumers were aware of
Britannia followed by Parle and ITC Ltd. (30 %). Britannia is the market leader with an
estimated share of 30 per cent. This may be due to aggressive advertisements. About 41
per cent of the sample consumers were aware of Nestle and ITC Ltd. The awareness level
for the Kraft Foods (4 %) and Unibic (2 %) was least. In respect of sandwich, 23 per cent
of the consumers were aware of McDonald’s and 19 per cent of them were aware of
Subway. 6 consumers were having the knowledge about Arby’s. Only 4 per cent had idea
about Jumbo King.
About 60 per cent of the sample consumers consume sandwich monthly. 22 per
cent of the consumers consumed once in two months followed by weekly (16 %) and
fortnightly (14 %). 7 consumers indicated that they consumed as and when needed and 2
consumers consumed once in two days.
With respect to chips, 27 per cent of the consumers indicated that they consume
weekly and fortnightly followed by monthly (22 %). As mentioned earlier that consumers
use chips as starters along with main meals. 20 per cent were consuming once in two
months. About 13 per cent of the consumers consumed as and when needed, daily, twice
a week and once in two days.
The SSFs were popular due to its taste, pungency and flavor. Consumers tend to
attract towards SSFs and feel like eating even though they are on diet. Fast pace of
changing consumers taste and preferences were also leading consumers to look for
delicious and convenience SSFs.
Indian savory snack market is growing. The major driving factors are higher
disposable income that aids in greater spending power by consumers, rapid urbanization
which leads to busy lifestyle and subsequent inclination toward packaged food products
and aggressive marketing campaigns by all the players to break the product clutter and
attract customers toward their brand. Addition to these, the other factors which are
contributing towards rapid growth of the industry include growing working women
population, fast expanding retail network and the convenience factor associated with SSF
consumption which in turn is providing immense opportunities for all manufacturers to
grow and operate in the market. There is intense competition to gain or retain the market
share, especially among the big players.
1. To analyze the purchasing behavior of the consumers for savory snack foods
2. To study the factors influencing consumption of snack foods in Bengaluru city and
3. To document the promotional strategy used for savory snack foods
The present study was conducted in Bengaluru city as it is one of the fastest
growing metropolitan cities in India and its highly cosmopolitan nature with people of
different states, religion, caste, occupation, culture, languages and food habits residing. A
total of 90 consumers were interviewed for the study. Required primary data have been
collected in the course of interview with the consumers through survey method with a
pre-tested schedule. The data was collected from consumers living in different localities
1. About 67 per cent of the sample consumers belonged to the young age group of
21 to 30 years.
2. Among the sample consumers 42 per cent were graduates followed by post-
graduates (30 %).
3. Among the sample consumers 29 per cent were students followed by private
sector employee (21 %).
4. About 65 per cent of the sample consumers were single and 87 per cent live in
nuclear family.
5. Majority of the sample consumers (74 %) having medium size family with 4 to 6
members.
6. About 21 per cent of the consumers had income ranging from Rs. 30,001 to Rs.
50,000.
7. About 70 per cent of the consumers spent on an average Rs. 1001 to Rs. 8000 per
monthon total food. Similarly, about 60 per cent of the consumers spent on
buying SSFs of Rs. 501 to Rs. 2000 per month.
9. More than 44 per cent of the consumers are buying chips, noodles and sandwich
on monthly basis, biscuits weekly (42 %) and chocolates as and when they want
(29 %).
10. About 70 per cent of the consumers purchase decision for chocolates was
impulsive in nature. 62 per cent of the sample consumers are purchasing biscuits
through planning. 53 per cent of the consumers plan their sandwich purchases.
Chips was purchased proportionately by planning and impulsive (50 %). Majority
of the sample consumers (79 %) buy noodles through planning.
11. Modern convenient retail formats were highly preferred by the consumers for
purchasing chocolates, biscuits, chips and noodles. 44 per cent of the sample
consumers buy sandwich from retail shops in shopping malls.
12. The important attributes considered while purchasing SSFs were product quality,
brand popularity, product range and content and promotional strategy.
14. Maggie noodles (98 %) tops among the consumption of SSFs followed by potato
chips (94 %) and Dairy Milk (82 %).
15. The brand awareness for Maggie, Dairy Milk, and Marie biscuit, Munch, Oreo,
Kitkat and Bourbon was high among the consumers varying from 99 per cent to
89 per cent.
16. About 54 per cent of the sample consumers were aware about company names
like Cadbury, Nestle, Britannia and PepsiCo.
17. About 77 per cent of sample consumers were aware of the ill effects of consuming
SSFs.
18. Among the sample consumers 30 per cent of the consumers have experienced ill
effects after consuming SSFs.
19. Multiple Linear Regression Analysis indicates that family size and monthly
household income have significantly influencing the consumption of SSFs.
20. About 42 per cent of the consumers were consumed chocolates as and when.
About 40 per cent of the consumers were consuming biscuits on weekly and
monthly basis. While, sandwich consumption is on monthly basis (60 %). 27 per
cent of the sample consumers purchase chips weekly and fortnightly. About 47
per cent of the consumers were consumed noodles on weekly basis.
21. Majority of the consumers preferred to eat SSFs while watching TV followed by
while travelling and at leisure times.
22. Eating at home was the most preferred place for consumption followed by
travelling and work place.
23. The most important reason for consumption of SSFs by the consumers was due to
its delicacy followed by easy to consume (convenience) and easy to buy.
24. About 42 per cent of the consumers like to eat SSFs in rainy season.
25. Attractive packaging (66.71) has the highest impact on majority of the consumers
in purchasing branded SSFs followed by TV programme, price discounts and
quantity offers.
26. Attractive packaging has greater impact on buying behavior for chocolates
followed by biscuits and noodles.
28. Around 62 per cent of the sample consumers were influenced by advertisements
to purchase SSFs.
6.2 Suggestions
3. The SSF companies should develop products of traditional dishes of India with
focus on taste as consumers preferred SSF for its taste.
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17) Monthly total expenditure incurred by the family on food (in Rs):………………
18) Monthly expenditure on the savory snack foods by the family (in Rs.): ………
19) Awareness about contents of savory snack foods
Content Yes No
Expiry date
Nutrients
Ingredients
Harmful effects
Benefits
20) What are the factor influencing the purchase decision of savory snack foods?
30) Do you feel like trying savory snacks after watching the advertisement?
a) Yes b) No
31) Name any five brands of the following savory snack foods
a) Chocolates……………….
b) Biscuits……………..
c) Sandwich……………
d) Chips…………………..
e) Noodles………………..
32) Are you aware of the companies producing these savory snacks?
a) Chocolates …………….
b) Biscuits…………
c) Sandwich…………
d) Chips………………
e) Noodles…………….
34) Are you aware of the ill effects of savory foods? Yes /No
If yes indicate the ill effects
a.
b.