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CONSUMER PREFERENCE FOR SAVORY SNACK

FOODS IN BENGALURU CITY

VEENA, V.
PALB 3140

DEPARTMENT OF AGRICULTURAL MARKETING


CO-OPERATION AND BUSINESS MANAGEMENT
UNIVERSITY OF AGRICULTURAL SCIENCES
BENGALURU - 560 065
2015
CONSUMER PREFERENCE FOR SAVORY SNACK
FOODS IN BENGALURU CITY

VEENA, V.
PALB 3140

Thesis submitted to the


University of Agricultural Sciences, Bengaluru
in partial fulfillment of the requirements
for the award of the Degree of

MASTER OF SCIENCE (Agriculture)


in

Agricultural Marketing and Co-operation

BENGALURU JULY, 2015


Affectionately Dedicated to
My Parents, Brother,
Sister and Friends
DEPARTMENT OF AGRICULTURAL MARKETING
CO-OPERATION AND BUSINESS MANAGEMENT
UNIVERSITY OF AGRICULTURAL SCIENCES
GKVK, BENGALURU – 560 065
CERTIFICATE
This is to certify that the Thesis entitled “CONSUMER PREFERENCE FOR
SAVORY SNACK FOODS IN BENGALURU CITY” submitted by Ms. VEENA, V.,
ID No. PALB 3140, in partial fulfilment of the requirements for the degree of MASTER
OF SCIENCE (Agriculture) in AGRICULTURAL MARKETING AND
CO-OPERATION to the University of Agricultural Sciences, Bengaluru is a bona-fide
record of research work done by her during the period of her study in this University,
under my guidance and supervision and the thesis has not previously formed the basis of
the award of any degree, diploma, associate ship, fellowship or other similar titles.
ACKNOWLEDGEMENT

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.

I sincerely thank Dr. G. N. Nagaraja, Professor and KSAMB Chair, Department of


Agricultural Marketing, Co-operation & Business Management, University of Agricultural
Sciences, GKVK, Bengaluru, for his valuable suggestions and guidance as member of my
Advisory Committee.

My words are inadequate to express my heartfelt gratitude and profound indebtedness


to Mr. T. N. Venkata Reddy, Associate Professor, Department of Agricultural Marketing,
Cooperation & Business Management, UAS, GKVK, Bengaluru for his critical comments,
guidance and inspiring encouragement.

I gratefully acknowledge Dr. H. Chandrashekar, Professor of Statistics and Co-


ordinator, PPMC, VC’s Office, University of Agricultural Sciences, GKVK, Bengaluru, for
his understanding, encouragement and personal attention which have provided good and
smooth basis for my M.Sc. tenure.

I gratefully acknowledge the co-operation and help extended by my teachers,


Dr. B. M. Ramachandra Reddy, Dr. M. S. Jayaram, Dr. M. S. Ganapathy, Dr. M. R. Girish
and Mr. Nanjunda Gowda, Department of Agricultural Marketing, Co-operation & Business
Management, University of Agricultural Sciences, GKVK, Bengaluru for their comments and
valuable suggestions provided during the course of my study.

I avail this opportunity to express my deep sense of reverence and gratitude to


Dr. C. P. Gracy, Professor and Dr. B. M. Shashidhara, Professor, Department of Agricultural
Marketing, Co-operation & Business Management, University of Agricultural Sciences,
GKVK, Bengaluru, for their expert advice, generous time spending and valuable comments in
different aspects of my research areas.

I specially wish to express my sincere thankfulness to my beloved parents


Mr. Vemanna, C., Mrs. Lalithamma, N., my brother Mohan Kumar, K.V and my sister
Mamatha, V., for their tremendous love and prayers that have been always very valuable and
for teaching me how to be a strong person and making me get back up whenever I stumble.

I will be failing in my duty if I don’t acknowledge some of my friends in the campus


with whom I have shared my research experiences since it was a joy and enlightenment to me. I
am fortunate to have friends like Divya, Bhagyashree, Pooja, S. Bhat, Shruthi, Nandish,
Arun, Shilpa, Parmesh, Karibasappa, Avinash, Srikant, Likin, Amrutha, Nethra, Ambika,
Mounika, Nandhini and Sandhya for their unconditional support, encouragement and
inspiration showered on me.

I acknowledge gatefully to my beloved seniors Lavanya, Kavitha, Shilpa, Savitha,


Mangala, Sowmya, Navya and Naveena for their emotional support and encouragement
throughout my study period.

I also acknowledge the non-teaching staff of the Department of Agricultural


Marketing, Co-operation & Business Management, University of Agricultural Sciences,
GKVK, Bengaluru for their kind cooperation and help throughout my study period.

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.

I would like to convey my heartfelt thanks to University of Agricultural Sciences,


GKVK, Bengaluru for offering me an ideal environment in which I felt free and could
concentrate on my research.

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.

July, 2015 (P. K. Mandanna)


Dept. of AMC & BM Major Advisor
UAS, GKVK, Bengaluru-65
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CONTENTS

Chapter Title Page No.

I INTRODUCTION 1-7

II REVIEW OF LITERATURE 8-18

III METHODOLOGY 19-26

IV RESULTS 27-47

V DISCUSSION 48-59

VI SUMMARY AND SUGGESTIONS 60-63

VII REFERENCES 64-70

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

Socio-economic characteristics of consumers of savory snack foods


4.1 28-29
(SSFs)

4.2 Factors influencing purchase decision of savory snack foods 30

4.3 Frequency of purchase of savory snack foods 32

4.4 Nature of purchase decision of savory snack foods 32

4.5 Preference of different types of retailers for purchase of SSFs 33

Kaiser-Meyer-Olkin measure and Bartlett’s test for adequacy of


4.6 33
factor analysis

4.7 Attributes considered while purchasing savory snack foods 34

4.8 Recommendations to other consumers regarding purchase of SSFs. 35

4.9 Awareness about SSFs among the sample consumers 35

4.10 Awareness level and consumption of selected savory snack foods 36

4.11 Awareness about quality of savory snack foods 37

4.12 Awareness level of selected brands of savory snack foods 38

4.13 Awareness level of consumers about SSF companies 39

4.14 Awareness about the ill effects of savory snack foods 40

4.15 Personal experience of the ill effects of savory snack foods 40

Regression coefficients of socio-economic factors influencing


4.16 41
consumption of savory snack foods

4.17 Frequency of consumption of savory snack foods 42

4.18 Preferred occasion of consumption of savory snack foods 42

4.19 Place of consumption of savory snack foods 43


Table Page
Title of the table
No. No.

4.20 Reasons for consumption of savory snack foods 44

4.21 Peak season of consumption of savory snack foods 44

Impact of promotional strategies of branded SSFs on consumers


4.22 46
purchase behavior.

4.23 Impact of attractive packaging on purchase of savory snack foods 46

4.24 Factors influencing the advertisement strategy 47

4.25 Purchase decision as influenced by advertisements 47


LIST OF FIGURES

Figure Between
Title of figure
No. Pages

1. Bengaluru map: showing the study area 20-21

2. Factors influencing purchase decision of savory snack foods 30-31

3. Frequency of purchase of savory snack foods 32-33

4. Preference of different types of retailers for purchase of SSFs 34-35

5. Cattell’s scree plot for attributes considered while purchasing SSFs 34-35

6. Frequency of consumption of savory snack foods 42-43

7. Peak season of consumption of savory snack foods 44-45


LIST OF PLATES

Plate Between
Title of the plate
No. Pages

1. Selected brands of chocolates 36-37

2. Selected brands and types of biscuits 36-37

3. Selected types of sandwich 36-37

4. Selected types of chips 36-37

5. Selected brands and types of noodles 36-37


I INTRODUCTION
Snack is defined as food or drink eaten between main meals (Chaplin and Smith,
2011). Savory snack foods (SSFs) are foods which are pleasing to the taste, something
one can really chew on extra long and really relish the flavor. It is simply called as
crunchy junk food. These are popular due to their taste, delicacy, flavor, spiciness and
pungency. SSFs form a part of snack food segment. It includes chocolates,
biscuits,sandwich, chips, noodles etc. Savory snacks contribute 15 to 20 per cent of daily
energy intake, 15 to 20 per cent of daily mineral intake and 13 to 17 per cent of daily
vitamin intake (Summerbell et al., 1995). A total of 24.4 per cent of daily energy intake
comes from snack consumption, while the energy contribution of protein, carbohydrate
and fat intake from snacks were 18.7 per cent, 26.6 per cent and 23.7 per cent of
adolescents’ daily energy intakes respectively (Boon et al., 2012).

1.1 Global savory snack food scenario


The global savory snacks market had total revenues of $89,427 million in 2013,
representing a compound annual growth rate (CAGR) of 5.1 per cent between 2009 and
2013.The top five emerging countries South Africa, China, India, Mexico and Brazil are
expected to reach a value of $23,668.6 million in 2018, with a CAGR of 8.4 per cent over
the 2013-18 period. China is the leading country in the savory snacks industry among the
top five emerging nations, with market revenues of $6,724.2 million in 2013. This was
followed by Mexico and Brazil with a value of $4,225.5 and $2572.9 million,
respectively. (http://www.rnrmarketresearch.com/market-focus-trends-anddevelopments-
in-the-savory-snacks-sector-in-the-sweden-market report. html).

1.2 Indian savory snacks market: Overview


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
savory snack consumption which in turn is providing immense opportunities for all
manufacturers to grow and operate in the market. Though the savory snacks market in
India was dominated by the unorganized sector, the organized sector has shown
remarkable growth in terms of market share during the 2010-11 period.

Though, there is no specific regulation pertaining to savory snacks, quality


standards laid by Food Safety and Standards Authority of India (FSSAI) has to be
followed by the savory snack industry players. Various Government policies that have
been formulated for the food processing sector such as foreign direct investment (FDI),
tax benefits and export promotions are applicable for the savory snack category as well.

Consumer Preference for Savory Snack Foods in Bengaluru City 1


According to the Ministry of Food Processing Industry, the snack food industry in
India is worth US$ 3 billion in value and over 4 lakh tonnes in terms of volume, with the
organized segment taking half the market share, and has an annual growth rate of 15 to
20 per cent. The unorganized snacks market is worth US$ 1.56 billion, with a growth rate
of 7 to 8 per cent per year. According to an Agricultural and Processed Food Products
Export Development Authority (APEDA) survey almost 1,000 snack items and 300 types
of savories are sold across India. The branded savory snacks are sold at least 25 per cent
higher the price than the unbranded products. In the branded savory snacks market, Frito-
Lay, subsidiary of Pepsi India commands a share of 50 per cent followed Haldiram’s at
27 per cent and ITC at 16 per cent in the year 2014 (http://articles.economictimes.
indiatimes.com/2015-03-06/news/59844409_1_pepsi-co-india-snacks-sanjiv-puri).

1.3 Trends in savory snack market


Savory snacks in India were primarily dominated by western snacks such as crisps
and extruded snacks. However, this trend is slowly changing. Other sweet and savory
snacks are gaining an edge over crisps/chips and extruded snacks. The major companies
like Cadbury, Nestle, Hershey, Mondelez and Kellogg’s, ITC, PepsiCo, Britannia,
Subway and Arby’s plays a major role in this sector. Some companies are with their
brands such as Kitkat, Munch, Bourbon, Oreo, Marie, Lays, Pringles, Bingo, Maggie and
few companies directly participate with their company names such as Cadbury Dairy
Milk etc. In the recent past many new players such as MTR Foods Ltd, Maiyas
Beverages and Foods Private Ltd., and Haldiram’s have ventured into savory snack
market. There are several reasons which have led to the growth of the branded savory
snacks markets. Some of these are mentioned below:

Changing consumer lifestyles and consumption patterns: The increasing urbanization


and growth in number of double income households has resulted in changing
consumption patterns, especially in the food category. The consumption pattern shifts
away from cereals and towards more expensive protective foods and processed foods
(Vepa, 2004). According to Ali and Abdullah (2012) the practice of eating-out had
become a trend among urban workers, students and even families.

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

2 Veena, V., M.Sc. (Agri.) 2015


supplements (Ming et al., 2006). Snacking between meals is a habitual occurrence in the
day-to-day lives of most Indian consumers. Further, savory snacks no longer cater to a
single consumer segment, but instead have a diverse consumer appeal and are
increasingly being consumed across different age groups. Branded savory snacks are also
fast penetrating the semi-urban and rural space which has been traditionally dominated by
unbranded or homemade products. As a result, the market has witnessed a high growth
trajectory and various new players are foraying into the market while the existing ones
are expanding to cash in on its growth potential.

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.

1.4 Why savory snack foods?


Savory snack foods have been under constant attack for excess of calorie, fat
including trans-fat, sugar, sodium, etc. There have been many lost campaigns to avoid
them or at least reduce the intake of SSFs. So tempting are these products that people risk
hypertension, obesity, cardiovascular heart diseases, diabetes etc., rather than give up
these products. As a result, manufacturers decided to make these products less harmful if
not completely healthy by changing either their process and ingredients to reduce the
harmful properties or add certain ingredients that make them less detrimental. While
making them healthful, one must remember that these are popularly consumed because of
their flavor, so there should be minimum reduction in that aspect while making
alterations.

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.

Consumer Preference for Savory Snack Foods in Bengaluru City 3


Trans-free savory snacks: Trans-fats from partially hydrogenated oils have been blamed
for not only elevating the undesirable low-density lipoprotein (LDL) cholesterol but also
by reducing the desirable high-density lipoprotein (HDL) cholesterol. Thus, trans-fats are
worse than saturated fats. Many health and regulatory agencies have recommended their
reduction, so, partially hydrogenated fats are avoided in snacks. They have certain
advantages in making products as they have higher solid fat index at much lower
saturation they are cheaper, give very good shortening effect in baked goods and do not
have oily appearance in fried products. Now many labelling regulations need to declare
trans-fat contents of food products so manufacturers have been substituting partially
hydrogenated fats with other fats and oils blending naturally solid fats with oils and using
various emulsifier systems.

Low cholesterol: Cholesterol problems are two-fold-one with ingredients having


cholesterol content and second with saturated fats producing higher levels of LDL
cholesterol in body. Animal products especially eggs and dairy products commonly
introduce cholesterol into food products. There are many bakery products like cakes,
pastries, doughnuts etc. made using eggs. The eggs are replaced in low cholesterol
products with emulsification system using a variety of surface active agents that would
do the job of eggs.

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,

4 Veena, V., M.Sc. (Agri.) 2015


obesity, hypertension etc. This has encouraged many manufacturers to use in their snacks
not only whole grains but multi-grains to derive additional benefits.

1.5 Competitive landscape


Frito-Lay, subsidiary of Pepsi India maintained category leadership, boasting a 35
per cent value share in 2013. The leadership was due to high penetration and huge media
campaigns for its brands Lay’s, Kurkure and Lehar. The company has always enjoyed
strong distribution all over India. However, its value share declined slowly over the
period, due to the rise of leading domestic players such as Prakash Snacks Pvt. Ltd. and
Balaji Wafers Pvt. Ltd. which competed on flavor innovation and affordable pricing.

1.6 Growth opportunity


There is a big market for savory snacks in India as urban Indian consumers eat
ready-made savory snacks 10 times more than their rural counterparts. Indians in the
western regions eat the maximum amount of savory snacks, followed by the people in
northern region. According to Dhruv et al. (2011) the traditional Gujarati savory snacks-
shallow fried foods (68.3 %), bakery products (51.7 %) and deep fried foods (45 %) was
savored by most of the people of Vadodara. And also consumption of bakery products
(especially biscuits) was highest among families having children (73.6 %).

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).

According to Nielsen retail sales information, sales of savory snacks, which


include crackers, rice cakes and pita chips, increased 21 per cent in the year 2013-14 in
Latin America. Meat snacks, which include Jerky and dried meat, grew 25 per cent in the
Middle East/Africa and 15 per cent in North America during the same period.
Refrigerated snacks, which include yogurt, cheese snacks and pudding, rose 6.4 per cent
in Asia-Pacific, while dips and spreads, which include salsa and hummus, increased 6.8
per cent in Europe.

Non-sugary savory snacks closely aligned with meal-replacement foods are


showing strong growth, which signals a shift in a consumer mindset to one focused on
health. While conventional cookies, cakes and confections categories still hold the
majority of savory snack sales, more innovation in the healthy snacking and portable food
space is necessary to adjust to this changing dynamics.

More than three-quarters of global respondents (76 %) eat snacks often or


sometimes to satisfy their hunger between meals or to satisfy a craving, and 45 per cent
of global respondents consume snacks as a meal alternative 52 per cent for breakfast, 43
per cent for lunch and 40 per cent for dinner (www.nielsen.com/consumer confidence).
Savory snacks are intended more for in-between meals than for actual meal replacements.

Consumer Preference for Savory Snack Foods in Bengaluru City 5


But busy, on-the-go lifestyles often dictate a need for quick meals, and many opt for fast
food options that can be high in calories and low in health benefits. There is a massive
untapped opportunity to gain market share in the nutritious, portable and easy-to-eat meal
alternative market that savory snack manufacturers could fill.

Consumers’ willingness to pay a premium for both value-added private and


branded products created immense opportunities for manufacturers to innovate newer
products. There is a widespread recognition in India that consumers are likely to replace
light meals with savory snacks. Per capita consumption of savory snacks in India (0.4 kg)
remains just a fraction of that in developed parts of the world, which reflects an immense
growth opportunity (www.euromonitor.com/sweet-and-savoury-snacks-in-india/report).
Companies are looking at rural India to strengthen their presence. For instance, ITC Ltd.
has plans to make its products available in small towns and rural areas, which were
earlier confined only to cities. The company has plans to increase its stocking point’s
three-fold. Similarly, other companies have also strengthened their distribution reach and
enhanced their shares. A large number of small players catering to the local market with
crude packaging offer various savory snack food items at a discounted price to the local
retailers. This implies that there is ready demand for unbranded SSFs in India.

1.7 Need for the study


Bengaluru being the capital city of Karnataka was selected purposefully for the
study, as it is one of the fastest growing metropolitan, with people of different religions,
castes, occupations, cultures, languages and food habits residing. And also the
composition of population based on income groups like rich, middle class and urban poor
live in Bengaluru. It is a cosmopolitan city which offers ready market for the companies
to produce and sell SSFs. The study would throw more light on the consumption pattern
of SSFs and the factors affecting it. The study intends to capture the dynamics of
changing SSF market in Bengaluru city.

1.8 Utility of the study


Over the past few decades, food consumption habits have changed immensely. In
today’s society, it is common for both spouses to work outside the home. Consequently,
rising disposable income, taste and preference give consumers a broad range of choices
for the SSF bundle. It is also opined that consuming snack food would save their time. It
is interesting to know the trends in consumption of SSFs in the context of health
awareness and improving quality of human life. Therefore, the study will help to know
the consumption and demand pattern for SSFs in Bengaluru city. It helps in formulating
suitable production, packing and marketing strategies for companies as well as the
unorganized innumerable players. Since, consumers are increasingly health conscious the
issue of food safety and standards being adhered to or not will help in standardising
production technology, packing technology and strengthening its supply chain.

6 Veena, V., M.Sc. (Agri.) 2015


1.9 The specific objectives of the study are
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
3. To document the promotional strategy used for savory snack foods

1.10 Hypotheses of the study


1. Income and education has significant influence on purchase behavior of consumers
towards savory snack foods
2. Consumers are positively influenced by brand loyalty
3. Promotional strategy increases sales

1.11 Limitations of the study


The study is based on the primary data obtained by personal interview method
through the convenient random sample households or consumers. The required data was
collected from the consumers visiting retail outlets, departmental stores and malls.
Secondary data relating to the sales and marketing strategy was collected from the
published sources. For the convenience, the study is restricted to only five categories of
SSFs which include chocolates, biscuits, sandwich, chips and noodles. Therefore, the
study findings may not be applicable to other SSFs as such. Thus, the results are
interpreted as per the above limitations of the study.

1.12 Presentation of the study


The study has been organized in to seven chapters. Chapter-I give a brief
description about the status of SSFs, types, advantages, market trends, market
opportunity, specific objectives and hypotheses; Chapter-II contains relevant review of
literature for the specified objectives of the study; Chapter-III provides details about
study area, sampling techniques, collection of data and analytical tools used for the data
analysis; Chapter-IV deals with the results of the study; Chapter-V discusses the results
of the study; Chapter-VI summarizes the findings and suggestions of the study; Chapter-
VII lists the references relating to present study.

Consumer Preference for Savory Snack Foods in Bengaluru City 7


II REVIEW OF LITERATURE
In this chapter, an attempt has been made to critically review the work done by
other researchers related to the topic of investigation. The studies regarding purchase
behavior, factors influencing consumption and promotional strategies of savory snack
foods (SSFs) have been reviewed and presented below under the following headings.

2.1 Purchasing behavior of the consumers


2.2 Factors influencing consumption
2.3 Promotional strategies by food manufacturers

2.1 Purchasing behavior of the consumers


Usha (2007) conducted a study on buying behavior of consumers toward instant
food products in Kolar district. The study reveals that retail shops were the major source
of information and purchase of instant food products. High price and poor taste were the
reasons for not purchasing particular brand whereas best quality, retailers influence and
ready availability were considered for preferring brand of products by consumers.

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.

Koutroulou and Tsourgiannis (2011) conducted survey on factors affecting


purchase behavior on local food in Greece. Results found that 45 per cent of consumers
were influenced by curiosity, prestige and freshness of the product and 55 per cent of the
consumers were interested in the topicality of the product. Two groups of consumers
were identified: (a) those influenced by curiosity, prestige and freshness of the product
and (b) those interested in the topicality of the product.

Ismail et al. (2012) conducted a study on consumer preferences of global brands


instead of local ones in Karachi and also find out the buying behavior patterns of young

Consumer Preference for Savory Snack Foods in Bengaluru City 8


consumers of Pakistan. It was found that consumer evaluates products based on
information clues, which are intrinsic and extrinsic. The results indicate that most
important factors that influence a consumer’s final decision are the price and quality of
the product.

Karuppusamy and Arjunan (2012) conducted study on consumers’ buying


behavior towards instant food products by households in Coimbature. The study reveals
that all the consumers were aware of pickles and sambar masala but only less percentage
were aware of dosa/idli mix. About 96.11 percent consumers of dosa/idli mix and more
than half of consumers of pickles and sambar masala prepared their own. The instant
food products produced at least cost and with better taste were found to be non-consumed
by consumers. And instant food products were normally consumed as they were readily
available and some time to save considerable extent the time to prepare. Retail shops are
the major source of information and source of purchase of instant food products. The
study also reveals that the average monthly expenditure on instant food products was
found to be highest in higher income groups.

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.

Uçar et al. (2012) conducted a study in the Ankara Province of Turkey to


determine the attitudes of adult consumers toward food consumption and purchasing
activities. Food consumption and purchasing attitude points have been analyzed in terms
of the gender, age, and educational level of the adults involved. The results showed that
women, 30-39 age group, and university graduates have a higher score of food-
consumption-and-purchasing attitude points than do men, the age group comprising
respondents < 30 and ≥ 40 years of age, and those with lower education levels,
respectively. Statistically significant relation was observed between food consumption
and purchasing attitude and age.

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

9 Veena, V., M.Sc. (Agri.) 2015


availability of quality products, discounts and offers, shopping convenience, store image
and post purchase satisfaction.

Antwi-Boateng et al. (2013) studied the assessment of factors influencing the


consumption of pork and poultry meat in Ghana: A comparative study. The three most
important factors consumers considered in the purchase of meat are taste, health and price
of meat. Demographic variables such as gender, age, family, income levels, and religion
significantly affect the attitude towards meat purchase.

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.

Jegan and Sudalaiyandi (2013) conducted a study on consumers buying behavior


towards various types of sunfeast (ITC) biscuits in Kovilpatti. The consumers buying
behavior varies from brand to brand on the basis of quality, quantity, price, taste,
advertisement etc. The results clearly indicate that the reason for buying Sunfeast biscuits
was mostly for its quality and while few of them prefer for its low prices.

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

Consumer Preference for Savory Snack Foods in Bengaluru City 10


consequences. The study concluded that product attributes such as taste and quality have
greater influence on purchasing decisions than environmental stimuli such as promotions
and food advertising.

Srivastava (2013) analyzed factors affecting buying behavior of consumers in


unauthorized colonies for FMCG Products in Khora of Uttar Pradesh. The study revealed
that consumers in such areas prefer brands over generic products. At the same time
reliability, product features and socio- economic factors have a large impact on buying
behavior along with promotional offers.

Baskar and Sundaram (2014) examined the consumer purchasing behavior


towards branded processed food in India. Variables considered were brand attributes,
brand endorsement, brand equity, ethical concerns and demography. The results found
that trust and safety were the two vital parameters drives brand towards consumers and
creates major influential thing on consumer mind. Age of consumers was having little
impact on purchase of brands over others.

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).

Kaur and Singh (2014) observed consumer behavior towards purchase of


processed cereal food products in Punjab. The study revealed that external influence like
nice packaging design, advertisements, availability of wide range of flavors, health, brand
consciousness and quality were the major factors that influence consumers to purchase
processed cereal food products.

Ohen et al. (2014) conducted a study to analyze consumer purchasing behavior


for fruits and vegetables among civil servants in Nigeria. The study indicated that
frequency of monthly purchase of fruits and vegetables was significantly determined by
the monthly income while other variables such as age, sex, marital status and educational
level had no significant on the frequency of monthly purchase.

2.2 Factors influencing consumption


Oogarah‐Pratap and Heerah‐Booluck (2005) conducted a study on children’s
consumption of snacks at school in Mauritius. The study findings revealed that most of
the popular snacks were high in sugar, fat, energy or salt. Snacking habit of school
children was significantly associated with age and gender. The snacking habit of children
seemed to be largely influenced by the cost of snacks, their taste and availability and the
amount of pocket money.

11 Veena, V., M.Sc. (Agri.) 2015


Alwis et al. (2009) analyzed the consumer attitudes, demographic and economic
factors that affect fresh milk consumption among the mid-country consumers of Sri
Lanka. Data were collected through a consumer survey conducted in Kandy district at
randomly selected super markets, groceries, milk bars and retail shops.An ordered
logistic regression was carried out to find out the relationships between number of
demographic and socio-economic characteristics of consumers such as age, gender,
levelof education, income, size and composition of the household, ethnic group and
presence of diseases that affect fresh milk consumption. Results shows age of the
respondent, cost and usage related attitudinal factor and nutrition related attitudinal
factors were the key determinants of milk consumption levels. However, household
monthly income, health problems affect on fresh milk consumption and level of
education play a more important role in consumption.

Varun et al. (2009) conducted a study on factors influencing the consumption


behavior of coffee and tea in Karnataka. The results revealed that the urban households
purchased on an average about 1.25 kgs of coffee and tea powder together every month,
while the rural ones purchased 1.16 kgs. Urban households spent relatively more of Rs.
235.13 and the rural households spent about Rs. 160. The factors like family size and
total family income had a positive influence on the demand for coffee in the urban areas.
In the rural areas, family size had a positive influence on the demand for coffee, while the
price per unit of coffee had a negative influence on the coffee demanded. In the case of
tea, total family income turned out to be highly significant in the urban areas.

Babu et al. (2010) studied on meat consumption patterns in rural households of


Chittoor district of Andhra Pradesh. The study reveals that poultry meat was preferred by
most of the rural households when compared to mutton, chevon, pork and beef. Further,
cost of the meat and religious beliefs play an important role in the meat consumption
patterns of rural people.

Begum et al. (2010) conducted a study in a village of Nowshera district, Pakistan


in the year 2005, to determine the food consumption pattern. The results indicated that an
average household size of 8.5 persons with a literacy rate of 94 per cent spent 55 per cent
per month of the total monthly income on food consumption. The empirical results
revealed that wheat flour, milk, rice, vegetables, sugar, edible fats and tea were positively
correlated with household size but, meat, pulses, eggs and fruits were not significantly
influenced by it. Similarly, household’s monthly total income showed a positive
relationship with the food consumed, except wheat flour, vegetables and eggs.

Hendijani and Karim (2010) investigated factors affecting milk consumption


among school children in urban and rural areas of Selangor in Malaysia. It was found that
the preferred beverages of children were mineral water, milo, fruit juice, milk, yoghurt,
tea and soft drinks and it was the same amongst children in urban and rural areas. Among
different types of milk, children preferred flavored milk rather than plain milk. The study
reveals that personal factors like attitudes, beliefs and consumption pattern were more
effective than environmental factors (social and physical) affecting milk consumption
among the children.

Consumer Preference for Savory Snack Foods in Bengaluru City 12


Adenegan and Adeoye (2011) assessed fruit consumption in university of Ibadan
students in Nigeria. The results of the study shown that majority of students made their
choice on fruit consumption based on the prices in the market. Also more than 60 per
cent of the consumers preferred the fresh fruits to processed fruits. Students’ income and
taste were significant determinants of the amount spent on fresh fruits by students. On
the other hand, only students’ income had significant effect on the quantity of processed
fruit consumed.

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.

James and Christodoulidou (2011) examined factors influencing the intention to


drink wine. The study was undertaken among Southern California wine drinkers in an
effort to provide cross- cultural comparison of wine consumption motivations and
intentions. The results of the study shows that among Southern California wine drinkers,
attitude is of greater influence on the intention to drink wine than social norms. The study
also shows a significant influence of the perceived health benefits of wine consumption
among Southern California wine drinkers.

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.

Boniface and Umberger (2012) investigated factors influencing consumption of


dairy products in Malaysia. The results indicate that demographic variables such as age
and ethnicity as well as other attitudinal variables significantly influence consumers
increasing consumption of dairy products.

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

13 Veena, V., M.Sc. (Agri.) 2015


between food and non-food items is undergoing a change and the rural poor have also
started spending more on non-food items. Women’s education plays an important role in
bringing about the change in consumption pattern.

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.

Gupta (2013) studied brand preferences and consumption pattern of beer in


Bareilly. The study captured changes across demographic and other variables and more
importantly, which product attributes are associated with these changes. Investigation of
the various factors of brand preference towards beer, and it also throws some light on the
behavioral aspects of the consumers such as frequency of consumption of an alcoholic
beverages-beer. The study made a methodological effort of studying brand preference
and consumption pattern of beer by analyzing the factors associated with brand
preference- frequency of beer consumption amongst beer drinkers, studying the effect of
demographic variables on specific brand choice and analyzing the relationship between
monthly income of the respondents and their expenditure on beer. The study revealed that
demographic variables have a significant impact on brand preference and consumption
pattern of beer.

Rahmawthy et al. (2013) conducted a study on factors that influence consumption


of fish and omega-3 enriched foods in Australia. Result shows that perceived health
benefits, and the influence of media and health professionals in health promotion were
identified as the primary motivators for consumption of fish/seafood and foods enriched
with omega-3. Among families who consume fish, taste was valued as having a major
positive influenceas well as preferences of individual family members, but the latter was
perceived as an obstacle in non-fish consumers. Price was the main barrier to
consumption of fresh but not canned, fish and n-3 enriched foods, in both those that do
and do not consume these foods.

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

Consumer Preference for Savory Snack Foods in Bengaluru City 14


consumption pattern of the soft drinks and fruit juices in all age groups. The study also
remarked the frequency of consuming fruit juices is more than that of soft drinks due to
health consciousness of people.

Shilpa (2014) examined the food consumption pattern in Chikkaballapur district


of Karnataka. The results indicate that the quantity of cereal consumption was more in
rural (43.24 kgs) areas than urban (36.83 kgs) areas. Redgram, bengalgram and
greengram were the major pulses consumed and found that there was no difference in the
monthly household consumption of beverages and other food items. The study also
revealed that family size and monthly income were mainly influencing food consumption
pattern.

Trung et al. (2014) observed factors influencing milk consumption of rural


households in Northern Vietnam. The result shows that household’s income and
convenience in milk buying have strong positive effects on milk consumption of the rural
households. Number of children and elders in rural households also has positive effects
on the probability of milk purchasing of rural households. Educational level was only
found to affect milk expenditure of the rural households. Age of the rural household head
and the importance of milk price have significant negative effects on both decisions of
milk consumption of the rural households, decision to buy milk and level of milk
expenditure.

2.3 Promotional strategies of food manufacturers


Ayanwale et al. (2005) in their study examined the influence of advertising on
consumer brand preference for Bournvita in South-western Nigeria. Results revealed that
both male and female of different age groups were equally influenced by advertising in
their preference for the brand. 38.73 per cent of the consumers showed preference for
Bournvita among various brands of the food drink studied. The major reasons advanced
for the preference were captivating advertising (42.62 %) and rich quality (40.16 %). TV
advertising was most preferred by 71.43 per cent of the respondents of all the media used
in advertising Bournvita.

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.

15 Veena, V., M.Sc. (Agri.) 2015


Chapman et al. (2006) in their study examined the extent and nature of food
promotion directed to children in Australian supermarkets. The study also examined the
promotion of healthy versus unhealthy foods. The number and types of promotions were
measured within seven food categories: sweet biscuits, snack foods, confectionery,
chips/savory snacks, cereals, dairy snacks and ice cream. The study found that within the
seven food categories between 9 and 35 per cent of food products used promotional
tactics. The use of television, movie celebrities and cartoon characters for promotion was
most common, making up 75 per cent of all promotions. Giveaways accounted for 13 per
cent of all promotions. The study also confirmed that 82 per cent of all food promotions
were for unhealthy foods and only 18 per cent were used to promote healthy foods.

Bishnoi and Sharma (2009) assessed the impact of TV advertising on buying


behavior of urban and rural teenagers of Haryana. The study reveals that rural teenagers
like television advertising more than their urban counterparts. TV advertising has
enhanced their involvement in product selection and purchase, they prefer to buy TV
advertised products and it is helpful in buying the new products. They also like the
advertisements of the products that they are using and believe that products are as good
as expected from TV advertisements. Male teenagers’ buying behavior is more
influenced by television advertisements than their female counterparts.

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.

Wai-Leng (2010) analyzed the influence of packaging attributes on consumer’s


purchase decision of packaged foodsin Malaysia. The results showed that packaging
shape and information on the package were associated with purchase decision of
packaged food products. And graphics on the packaging, the color and size of the
packaging as well as packaging material for packaged food do not have any significant
relationship with purchase decision.

Haroon et al. (2011) examined television advertisements and children’s food


using pattern when they were watching television and their desire to purchase goods that
they saw advertisements on television. The study was conducted in Pakistan. The results
showed that children were bombarded with so many advertisements and their behavior
was more influenced by the television food advertisements. It was also affecting their
food choices and health.

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

Consumer Preference for Savory Snack Foods in Bengaluru City 16


advertising in their preference for the brand. Attractive advertising policy and rich quality
were the major reasons for brand preference.

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).

Pughazhendi et al. (2012) analyzed effectiveness of celebrity endorsed


confectionary products on children with special reference in Coimbatore city. The study
states that confectionary products were concerned, children insists their parents to
purchase confectionary products for them being influenced more by television
advertisements and celebrity endorsed products than by other medium of advertising.

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.

Goutam (2013) studied influence of brand ambassadors on buying behavior of


soft drinks with reference to Belgaum city. The findings of the study reveals that majority
of the consumers were influenced by TV advertisement of a particular soft drink brand
endorsed by their favorite icon. The other attributes like quality and value for money also
influences consumer buying behavior of soft drinks.

Jarossova (2013) conducted a study on the impact of school shops on students’


eating habits in Wroclow in Poland. The study reveals that majority of food and
beverages purchased by the students were characterized by high energy value (high

17 Veena, V., M.Sc. (Agri.) 2015


content of fat or sugar) and low nutritional value. The advertisements of sweetened fizzy
soft drinks (coca-cola) displayed in the school shops also influenced the students eating
habits.

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.

Ahmed et al. (2014) observed impact of product packaging on consumer’s buying


behavior. The study was conducted in Karachi. Findings of the research study reveal that
packaging was the most important factor. It was further concluded that packaging
elements like its color, packaging material, design of wrapper and innovation were more
important factors influencing consumers buying decision. This study further confirms the
findings of the study by Deliya and Parmar (2012).

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.

Oyeniyi (2014) studied celebrity endorsements and product performance in


Nigeria. The results indicate that trust, level of expertise and the fit between the celebrity
and the product have positive impact on product performance. It was discovered that
attractiveness of the celebrity and the similarities between the celebrity and the receiver
has little effect on product performance.

Tariq et al. (2014) examined the relationship of effective advertisement on brand


equity and brand switching behavior of the customers on major soft drink brands of
Pakistan. The findings of the study suggest that effective advertisement was positively
related to brand equity and negatively related to brand switching behavior of the
customers. Effective advertisement also has a moderate effect on brand awareness.

Consumer Preference for Savory Snack Foods in Bengaluru City 18


III METHODOLOGY
This chapter presents a comprehensive picture of the methodology adopted for the
present investigation undertaken to analyze the purchase behavior, factors influencing
consumption of savory snack foods (SSFs) and to document the promotional strategies
used for SSFs in Bengaluru city. It constitutes the blueprint for collection, arrangement
and analysis of data. This chapter presents a brief discussion of the study under the
following headings.

3.1 Selection and description of study area


3.2 Sampling design
3.3 Data collection
3.4 Analytical tools and techniques

3.1 Selection and description of study area


3.1.1 Selection of study area
Bengaluru, being the capital city of the South Indian state of Karnataka was
selected purposefully for the study, as it is one of the fastest growing metropolitan cities
and is highly cosmopolitan in nature with people of different states, religion, caste,
occupation culture, languages and food habits residing. Andalsothe composition of
population based on income groups like, urban rich, middle class and urban poor live in
Bengaluru. It is the information technology (IT) and biotechnology (BT) hub of India,
with industrial estates and numerous financial and educational institutions of immense
potential for snack foods.

3.1.2 Description of study area


Bengaluru is located in the Deccan plateau in south-eastern Karnataka. The
majority of the city of Bengaluru lies in the Bengaluru Urban district of Karnataka and
the surrounding rural areas are a part of the Bengaluru Rural district. Bengaluru is the
third most populous city of India which is experiencing a huge growth in its population. It
is estimated that there are about one crore and eight lakh people living in Bengaluru as
per 2011 census. The population growth rate in Bengaluru over the decade 2001-2011
was 46.68 per cent. Bengaluru has a sex ratio of 908 females for every 1000 males.
According to the 2011 census of India, the city has a literacy rate of 89 per cent. Roughly
10 per cent of Bengaluru population lives in slums mostly the immigrant population from
other southern states of the country. A relatively low proportion when compared to other
cities in the developing world such as Mumbai (50 %) and Nairobi (60 %). The density is
4,378 people per square km. 71 per cent of population in Bengaluru speak Kannada and
remaining 29 per cent of population speak Tamil, English, Hindi, Telugu, Malayalam and
Urdu.

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

Consumer Preference for Savory Snack Foods in Bengaluru City 19


India. The city is the centre of many Indian as well as multinational InfoTech companies.
Bengaluru has made a niche for itself in the international arena in terms of its growth and
with major players in the IT industry gaining footholds. Bengaluru came to be best
known within India for being the country's unofficial high-tech capital. Besides, many
public sector undertakings such as Hindustan Aeronautics Limited (HAL), Bharat
Electronics Limited (BEL), Bharat Earth Movers Limited (BEML) and Hindustan
Machine Tools (HMT) are located in Bengaluru. Premier educational institutes like
Indian Institute of Sciences, Indian Institute of Management, National Centre for
Biological Research, Jawaharlal Institute of Advanced Research, Institute for Social and
Economic Change are located in Bengaluru.

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.

3.2 Sampling design


The data for the present study pertaining to consumer preference for savory snack
foods was obtained from sample households or consumers using pre tested schedule.
Total of 90 consumers were interviewed for the study purpose. The data were collected
from consumers living in different localities covering the entire Bengaluru city. The
sample consumers were interviewed at college campus, hostels, departmental stores,
retail formats, shopping malls, bakeries, parks as well as at homes. For the convenience
of the present study, the SSFs were categorized into five groups as shown in Table 3.1

20 Veena, V., M.Sc. (Agri.) 2015


Fig. 1: Bengaluru map: showing the study area
Table 3.1: List of savory snack foods selected for the study

Sl. Types of savory


Name of savory snack foods
No. snack foods

1. Chocolates Dairy milk, Nut crunch, Kitkat, Toffee crisp and Munch.

Bourbon, Coconut macaroon, Custard cream, Oreo and


2. Biscuits
Marie biscuit.

Vadapav, Pavbhaji, Hamburger, Breakfast roll and Ham and


3. Sandwich
Egg bun.

Potato chips, Banana chips, Curly peanut puffs, Corn chips,


4. Chips
and Tortilla chips

Cup noodles, Yippie, Top Ramen, Fried vermicelli and


5. Noodles
Maggi.

3.3 Data collection


Both primary and secondary data were used in the present study. However, the
study is largely based on the primary data. Required primary data have been collected in
the course of interview with the consumers through survey method with a pre-tested
schedule. The required secondary data for the study have been collected through
websites, books, leading journals and magazines.

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.

3.3.1 Period of study


The reference year of the study was 2014-15 and the data were collected during
the period of February and March 2015.

Consumer Preference for Savory Snack Foods in Bengaluru City 21


3.4 Analytical tools and techniques
The following tools were employed to analyze the data with reference to the
selected objectives of the study.

3.4.1 Descriptive Statistics


3.4.2 Multiple Linear Regression Analysis
3.4.3 Garrett’s Ranking Technique
3.4.4 Factor Analysis
3.4.5 Likert Scale
3.4.6 Standardised scores
3.4.7 Terms and concepts used

3.4.1 Descriptive Statistics


These are numbers that are used to summarize and describe a given data set,
which can either be a representation of the entire population or a sample. These are used
to present quantitative descriptions in a manageable form in the study. The measures used
to describe the data set are measures of central tendency like averages, percentagesand
ratios etc, which were used for the analysis of the study.

3.4.1.1 Percentage Analysis:


Percentage Analysis is applied to create a contingency table from the frequency
distribution and represent the collected data for better understanding.

3.4.1.2 Ratio Analysis


Ratio analysis is an attempt to express the relationship between two or more
accounts or variables in a simpler, more comprehensive way.

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.

3.4.2 Multiple Linear Regression Analysis


Multiple linear regression analysis was used to study the factors influencing
consumption expenditure of SSFs. In this case, total monthly expenditure on SSFs was
taken as dependent variable and the independent variables used were age, gender, marital
status, family type, family size, monthly income and food habit. The form of equation
used was:
Y= a+b1X1+b2X2+b3X3+b4X4+b5X5+b6X6+b7X7+E

22 Veena, V., M.Sc. (Agri.) 2015


Where,
Y= Monthly expenditure on savory snack foods (Rs.)
X1= Age of the consumers (in years)
X2= Dummy of gender; 1 if the consumers are female, otherwise 0.
X3= Dummy of marital status of the consumers; 1 if married, otherwise 0.
X4= Dummy of family type of the consumers; 1 if nuclear, otherwise 0.
X5= Family size of the consumers
X6= Monthly household income (Rs.)
X7= Dummy of food habit of the consumers; 1 if veg, otherwise 0.
bi= regression coefficient
a = intercept
E= Random disturbance term

3.4.3 Garrett’s Ranking Technique


Garrett’s ranking technique was followed to analyze the attributes considered
while purchasing SSFs by consumers. It was also used to find out the most significant
reason which influences the consumers to consume savory snacks, preferred occasion of
eating, place of consumption and to study the impact of promotional strategies of SSFs
on purchase behavior. In this method, the consumers were asked to rank the given factors
and the outcome of such ranking has been converted into score value with the help of the
following formula: Percentage position = 100 (Rij – 0.5)
Nj

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.

3.4.4 Factor Analysis


Factor analysis is a multivariate statistical technique that is concerned with the
identification of structure within a set of observed variables. In factor analysis, latent
variables represent unobserved constructs and are referred to as factors or dimensions. It
operates on the notion that measurable and observable variables can be reduced to fewer

Consumer Preference for Savory Snack Foods in Bengaluru City 23


latent variables that share a common variance and are unobservable, which is known as
reducing dimensionality.

3.4.4.1 Uses of Factor Analysis


Factor analysis is useful for studies that involve a few or hundreds of variables,
items from schedule which can be reduced to a smaller set, to get at an underlying
concept, and to facilitate interpretations. It is easier to focus on some key factors rather
than having to consider too many variables that may be trivial, so factor analysis is useful
for placing variables into meaningful categories. Many other uses of factor analysis
include data transformation, hypothesis-testing, mapping and scaling.

3.4.4.2 Limitations of Factor Analysis


One of the limitations of this technique is that naming the factors can be
problematic. Factor names may not accurately reflect the variables within the factor.
Further, some variables are difficult to interpret because they may load onto more than
one factor which is known as split loadings. It is not recommended to pool results from
several samples or from the same sample at different points in time as these methods may
obscure the findings. As such, the findings from factor analysis are difficult to replicate.

3.4.4.3 Factor Analysis Model


This model describes co-variation among the variables in terms of number of
common factors plus a unique factor for each variable. If the variables are standardized,
the factor model can be represented as

Xi= Ai1F1+Ai2F2+Ai3F3+...................+Aim Fm+ ViUi


Where,
Xi = ith standardized variable
Aij = standardized multiple regression co-efficient of variable i on common factor j
F = common factor
Vi = standardized regression co-efficient of variable i on unique factor
Ui = unique factor for variable i
M = number of common factors

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.

Fi = Wi1 X1 +Wi2 X2 +Wi3 X3+.................+Wik Xk


Where,
F = estimate of ith factor
W = co-efficient of factor score or weight
k = number of variables

24 Veena, V., M.Sc. (Agri.) 2015


It is possible to select weights or co-efficient of factor scores so that the first
factor describes the largest portion of the total variance. Similarly, a second set of
weights can be selected so that the second factor accounts for most of the residual
variance subject to being uncorrelated with the first factor. The same principle can be
applied for selecting additional weights for the additional factors.

3.4.5 Likert Scale


A psychometric response scale primarily used in questionnaires to obtain
consumers preferences or degree of agreement with a statement/item or set of statements.
It was developed by Dr. Rensis Likert. Likert scales are a non-comparative scaling
technique and are one-dimensional (only measure a single trait) in nature. Consumers are
asked to indicate their level of agreement with a given statement by way of an ordinal
scale. Likert scale data are analyzed at the interval measurement scale. Likert scale items
are created by calculating a composite score (sum or mean).

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:

3.4.6 Standardized Scores


The data on impact of attractive packaging on purchase behavior of SSFs was
obtained through 5 Likert scale items on a five point continuum. Since Likert-type data is
ordinal data, one can only say whether one score is higher than another, not the distance
between the points. Therefore, the Likert scores were transformed into a standard score
expressed in percentage by dividing the actual score of the jth respondent for the ith
statement/item with the standard deviation (Maximum-minimum) for that statement/item.
The standard scores for each statement/item were cumulated to obtain the sum and were
ranked in the order of their magnitude.

𝐴𝑖𝐽
Standard Score (Si) = ∑𝑛𝐽=1 ( 𝐼𝑚𝑎𝑥−𝐼𝑚𝑖𝑛 ) × 100

Where, Si= Standard score for ith variable


Aij= Actual score of jth individual for ith statement/item
Imax= maximum score obtained for Ith statement/item
Imin= minimum score obtained for Ith statement/item

Consumer Preference for Savory Snack Foods in Bengaluru City 25


Definitions of terms and concepts
Factor: It is the linear combination of the original variables. It also represents the
underlying dimensions that summarize or account for the original set of observed
variables.

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.

Bartlett’s test of Sphericity: It is a measure of sampling adequacy which is used to test


the hypothesis that the correlation matrix is an identity matrix (is on the diagonal, is off
the diagonals), which would indicate that the variables are unrelated. The Bartlett’s test
of Sphericity must be less than 0.05.

Communality (common variance): This shows the overall proportion of variance


attributable to the factors.

Varimax: A method of factor analysis in which uncorrelated factors are sought by a


rotation that maximizes the variance of the factor loadings.

26 Veena, V., M.Sc. (Agri.) 2015


IV RESULTS
The results of the study carried out in consistence with the objectives of the study
are presented in this chapter under the following headings.

4.1 Socio-economic characteristics of consumers of savory snack foods (SSFs)


4.2 Purchasing behavior of the consumers
4.3 Awareness level and consumption pattern
4.4 Factors influencing consumption
4.5 Promotional strategy of food manufacturers

4.1 Socio-economic characteristics of consumers of savory snack foods (SSFs)


The socio-economic characteristic of consumers of SSFs is presented in Table
4.1. Domicile status of the sample consumers indicates that 89 per cent were South
Indians and the rest were North Indians. The age profile shows that 67 per cent belonged
to the young age group of 21 to 30 years. Gender classification of sample consumers
indicate that male and female were in equal proportionate (50 %) consuming SSFs.

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.

4.2 Purchasing behavior of the consumers


4.2.1 Factors influencing purchase decision of savory snack foods
For the present study the SSFs selected were chocolates, biscuits, sandwich, chips
and noodles. Table 4.2 presents the factors influencing the purchase decision of SSFs. A
vast majority of the consumers were mainly influenced by advertisements in TV (84 %).
Further, 82 per cent of the consumers were influenced by friends and neighbors followed
by children (70 %). Besides, 43 per cent of consumers were also influenced by the
promotional staff of company. The results are presented in Fig. 2.

Consumer Preference for Savory Snack Foods in Bengaluru City 27


Table 4.1: Socio-economic characteristics of consumers of savory snack foods (SSFs)
(n = 90)
Sl. No. Particulars No. of Consumers Percentage to total
1. Domicile status
North Indian 10 11.11
South Indian 80 88.89
Total 90 100
2. Age ( in years)
Up to 20 6 6.67
21-30 60 66.67
31-40 9 10.00
41-50 12 13.33
Above 50 3 3.33
Total 90 100
3. Gender
Female 46 51.11
Male 44 48.89
Total 90 100
4. Education
Primary School 5 5.56
High School 9 10.00
Pre-University 11 12.22
Graduation 38 42.22
Post-Graduation 27 30.00
Total 90 100
5. Occupation
Student 26 28.89
Government employee 11 12.22
Business 8 8.89
Homemaker 10 11.11
Private sector employee 19 21.11
IT 16 17.78
Total 90 100
6. Marital Status
Single 59 65.56
Married 31 34.44
Total 90 100
7. Type of family
Nuclear 78 86.67
Joint 12 13.33
Total 90 100

28 Veena, V., M.Sc. (Agri.) 2015


Table 4.1 Contd…
Sl. No. Particulars No. of Consumers Percentage to total
8. Family composition
Small size (less than 4) 20 22.22
Medium size (4-6) 67 74.45
Large size (more than 6) 3 3.33
Total 90 100
9. Monthly household income (Rs.) No. of Consumers Percentage to total
Up to 10000 9 10.00
10001-20000 13 14.44
20001-30000 12 13.33
30001-50000 19 21.11
50001-100000 14 15.56
100001-200000 9 10.00
Above 200000 14 15.56
Total 90 100
10. Monthly total expenditure (Rs.) on food
Up to 1000 1 1.11
1001-4000 29 32.22
4001-8000 35 38.89
8001-12000 17 18.89
12001-16000 4 4.45
16001-20000 3 3.33
Above 20000 1 1.11
Total 90 100
11. Monthly total expenditure on savory snack foods (Rs.)
Up to 500 10 11.11
501-1000 24 26.67
1001-2000 25 27.78
2001-3000 16 17.78
3001-4000 7 7.78
4001-5000 6 6.66
Above 5000 2 2.22
Total 90 100
12. Food habits
Vegetarian 33 36.67
Non-vegetarian 57 63.33
a. By birth 45 50.00
b. Switched over 12 13.33

Consumer Preference for Savory Snack Foods in Bengaluru City 29


Table 4.2: Factors influencing purchase decision of savory snack foods
(n = 90)

Sl. No. Influencers No. of consumers Percentage

1. Advertisements in TV 76 84.44

2. Friends and neighbours 74 82.22

3. Children 63 70.00

4. Shop keepers 55 61.11

5. Advertisements in Newspaper 51 56.67

6. Parents 48 53.33

7. Promotional staff of company 39 43.33

Note: Multiple responses were given by the consumer

30 Veena, V., M.Sc. (Agri.) 2015


90

80

70

60
Percentage

50

40

30

20

10

Factors influencing purchase decision

Fig. 2: Factors influencing purchase decision of savory snack foods


4.2.2 Frequency of purchase of savory snack foods
The frequency of buying of SSFs is indicated in Table 4.3. There is considerable
variation in the buying behavior. With respect to the purchase behavior, more than 44 per
cent of the consumers were buying chips, noodles and sandwich on monthly basis. The
purchase of biscuits was mostly on weekly basis (42 %). 29 per cent of the sample
consumers buy chocolates as and when they want. The results are presented in Fig. 3.

4.2.3 Nature of purchase decision of savory snack foods


Purchase decisions is both planned and impulse. Table 4.4 indicates that
chocolates top. The list of impulse buying (71 %) followed by chips, sandwich, biscuits
and noodles with 50, 47 and 38 per cent respectively. As far as planned buying is
concerned it was noodles (79 %) followed by biscuits (62 %), sandwich (53 %), chips (50
%) and chocolates (29 %).

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).

4.2.5 Attributes considered while purchasing savory snack foods


Factor analysis was used to identify the important attributes considered while
purchasing SSFs by the consumers. The first step is to check the adequacy of factor
analysis with the help of Kaiser-Meyer-Olkin (KMO) measure and Bartlett’s test (Table
4.6). The KMO measure was 0.499 which reveals that the factors extracted will account
for fair amount of variance. The Chi-square value for Bartlett’s test was significant, thus
rejecting the null hypothesis of independence among variables.

Although, it is possible to have many factors as the number of variables, those


factors with Eigen values greater than one are considered for determining the number of
factors. Therefore, with the help of Cattell’s scree plot, the number of factors was
determined (Fig. 5).

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.

Consumer Preference for Savory Snack Foods in Bengaluru City 31


32

Table 4.3: Frequency of purchase of savory snack foods


(n =90)

Chocolates Biscuits Sandwich Chips Noodles


Sl. No. Frequency of purchase
No. % No. % No. % No. % No. %
1. As and when 26 28.89 7 7.78 3 3.33 6 6.67 4 4.44
2. Daily 4 4.44 15 16.67 2 2.22 2 2.22 0 0
3. Twice a week 16 17.78 15 16.67 2 2.22 12 13.33 1 1.11
4. Once in two days 1 1.11 6 6.67 0 0 7 7.78 1 1.11
Veena, V.,

5. Weekly 22 24.44 38 42.22 12 13.33 30 33.33 31 34.44


6. Monthly once 22 24.44 14 15.57 54 60.00 43 47.78 40 44.44
M.Sc. (Agri.)

7. Others 11 12.22 13 14.44 5 5.57 7 7.78 15 16.67

Note: Multiple responses were given by the consumer

Table 4.4: Nature of purchase decision of savory snack foods


(n =90)

Chocolates Biscuits Sandwich Chips Noodles


Sl. No. Nature of purchase
No. % No. % No. % No. % No. %
1. Impulse 64 71.11 34 37.78 42 46.67 45 50.00 19 21.11
2. Planned 26 28.89 56 62.22 48 53.33 45 50.00 71 78.89
2015

Total 90 100 90 100 90 100 90 100 90 100


70
Chocolates Biscuits Sandwich Chips Noodles

60

50

40
Percentage

30

20

10

Frequency of purchase

Fig. 3: Frequency of purchase of savory snack foods


Consumer Preference for Savory Snack Foods in Bengaluru City

Table 4.5: Preference of different types of retailers for purchase of savory snack foods
(n =90)

Chocolates Biscuits Sandwich Chips Noodles


Sl. No. Particulars
No. % No. % No. % No. % No. %

1. Modern retail formats 55 61.11 42 46.67 0 0 30 33.33 26 28.89

2. Kirana stores 16 17.78 18 20.00 13 14.44 21 23.33 17 18.89

3. Departmental stores 21 23.33 30 33.33 0 0 22 24.44 48 53.33

4. Retail shop in shopping malls 4 4.44 3 3.33 40 44.44 8 8.89 10 11.11

5. Bakeries 10 11.11 28 31.11 17 18.89 25 27.78 4 4.44

Note: Multiple responses were given by the consumer

Table 4.6: Kaiser-Meyer-Olkin measure and Bartlett’s test for adequacy of factor analysis

Kaiser-Meyer-Olkin measure of sampling adequacy 0.499

Bartlett’s test of Sphericity Approximate Chi-square 206.146

Difference 120

Significance 0.000
33
34

Table 4.7: Attributes considered while purchasingsavory snack foods


(n = 90)

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.)

9. Healthy -0.030 0.166 0.184 -0.008 -0.112 -0.069 0.774 0.115


10. Advertisements 0.077 0.018 -0.014 0.824 0.074 -0.010 0.064 0.064
11. Ingredients are displayed on the pack 0.162 -0.023 0.822 -0.181 0.062 0.009 -0.001 -0.034
12. Absence of additives/chemicals 0.012 0.689 0.043 -0.219 0.066 -0.035 0.298 0.085
13. Children preference 0.057 -0.073 0.252 0.168 0.051 -0.807 0.150 -0.111
14. Availability of many flavors -0.491 -0.054 0.264 0.184 -0.567 0.124 0.239 0.054
15. Products are well recognized -0.460 0.469 -0.051 0.167 0.433 0.083 0.182 -0.324
16. Fits my budget 0.080 0.096 -0.018 -0.341 0.006 -0.037 0.513 0.264
Note: Multiple responses were given by the consumer
Extraction Method: Principal Axis Factoring
2015

Rotation Method: Varimax with Kaiser Normalization


70

60 Chocolates
Biscuits
Sandwich
50
Chips
Noodles
40
Percentage

30

20

10

Different types of retailers

Fig. 4: Preference of different types of retailers for purchase of SSFs


Fig. 5: Cattell’s scree plot for attributes considered while purchasing SSFs
4.2.6 Recommendation to other consumers regarding purchase of SSFs
Table 4.8 clearly reveals that 56.67 per cent of consumers would suggest others to
buy SSFs while the remaining 43.33 per cent would not committed.

Table 4.8: Recommendations to other consumers regarding purchase of SSFs


(n = 90)

Sl. No. Particulars Number of consumers Percentage to total

1. Yes 51 56.67

2. No 39 43.33

Total 90 100

4.3 Awareness level and consumption of selected savory snack foods


4.3.1 Awareness about SSFs among the sample consumers
It can be seen from the Table 4.9 that the awareness about SSFs was cent percent
among the sample consumers.

Table 4.9: Awareness about SSFs among the sample consumers


(n = 90)

Sl. No. Particulars No. of Consumers Percentage to total

1. Aware 90 100

2. Not aware 0 0

Total 90 100

4.3.2 Awareness level about selected savory snack foods


It can be inferred from the Table 4.10 that all the sample consumers were aware
of the SSFs. Consumers awareness about different brands of chocolates were analyzed.
As far as sandwich and chips are concerned the awareness level was computed for
different types and not for brands. Under biscuits and noodles both brands and types were
analyzed. The awareness level for potato chips was cent percent, Maggie noodles
followed by banana chips (98 %), Dairy Milk (97 %), Marie biscuit (97 %), Munch (95
%), Oreo, Kitkat (92 %), and Bourbon biscuits (89 %). This shows that the sample
consumers were highly brand conscious. 74.44 per cent of the sample consumers were
known about pavbhaji and vadapav. Among the consumers, the awareness level for
Toffee Crisp, Ham and Egg bun and Curly peanut puffs was the lowest.

Consumer Preference for Savory Snack Foods in Bengaluru City 35


Table 4.10: Awareness level and consumption of selected savory snack foods
(n = 90)
Sl. Name of savory Aware Most consumed
No. snack food No. % No. %
1. Chocolates (Brands)
Dairy milk 88 97.77 74 82.22
Munch 86 95.55 51 56.66
Kitkat 83 92.22 40 44.44
Others 46 51.11 44 48.89
Nut crunch 44 48.88 25 27.77
Toffee crisp 25 27.77 7 7.77
Average 62 68.83 40.16 44.62
2. Biscuits (Brands and types)
Marie biscuit 87 96.66 64 71.11
Oreo 83 92.22 44 48.88
Bourbon 80 88.88 55 61.11
Others 57 63.33 52 57.78
Custard cream 34 37.77 11 12.22
Coconut macaroon 27 30.00 22 24.44
Average 61.33 68.14 41.33 45.92
3. Sandwich (Types)
Pavbhaji 70 77.77 56 62.22
Vadapav 67 74.44 53 58.88
Breakfast roll 59 65.55 44 48.88
Hamburger 34 37.77 13 14.44
Ham and Egg bun 27 30.00 17 18.88
Others 8 8.88 8 8.88
Average 44.16 49.06 31.83 35.36
4. Chips (Types)
Potato chips 90 100 85 94.44
Banana chips 89 98.88 51 56.66
Corn chips 59 65.55 41 45.55
Tortilla chips 27 30.00 12 13.33
Others 24 26.66 22 22.00
Curly peanut puffs 20 22.22 7 7.77
Average 51.50 57.21 36.33 39.95
5. Noodles (Brands and types)
Maggie 89 98.88 88 97.77
Fried vermicelli 67 74.44 42 46.66
Cup noodles 59 65.55 27 30.00
Yippie 51 56.66 24 26.66
Top Ramen 32 35.55 10 11.11
Others 12 13.33 12 13.33
Average 51.66 57.40 33.83 37.58

36 Veena, V., M.Sc. (Agri.) 2015


Plate 1: Selected brands of chocolates

Coconut Macaroon

Plate 2: Selected brands and types of biscuits


Vada pav Pav bhaji Ham and egg bun

Hamburger Breakfast roll

Plate 3: Selected types of sandwich

Potato chips Banana chips Corn chips

Curly peanut puffs Tortilla chips

Plate 4: Selected types of chips


Plate 5: Selected brands and types of noodles
4.3.3 Consumption pattern of selected savory snack foods
As far as consumption of SSFs is concerned, Maggie noodles tops among the
SSFs (97 %) followed by potato chips (94 %) and Dairy Milk (82 %). 71 per cent of the
sample consumers consumed Marie biscuit. With respect to sandwich, pavbhaji, vadapav
and breakfast roll were consumed the most. The consumption level was found to be low
for Toffee Crisp, Custard cream, Coconut Macaroon, Hamburger, Ham and Egg bun,
Tortilla chips, Curly peanut puffs and Top Ramen (Table 4.10).

4.3.4 Awareness about quality of savory snack foods


From the Table 4.11 it can be seen that overwhelming majority (97 %) of the
sample consumers had knowledge about the best before use date. 68 per cent were aware
of the nutrients and about 67 per cent of them indicated that they were aware of
ingredients displayed on SSFs. 70 per cent of them were aware of harmful effects and 75
per cent of the consumers indicated that they were aware of benefits of consuming SSFs.

Table 4.11: Awareness about quality of savory snack foods


(n = 90)

Aware Not aware


Sl. No. Contents
No. % No. %

1. Expiry date 87 96.67 3 3.33

2. Nutrients 62 68.88 28 31.11

3. Ingredients 61 67.77 29 32.22

4. Harmful effects 63 70.00 27 30.00

5. Benefits 68 75.55 22 24.44

Note: Multiple responses were given by the consumer

4.3.5 Awareness level of selected brands of savory snack foods


The brand awareness of the SSFs indicates that the awareness level for Lay’s was
found to be high among the consumers. More than 35 per cent of the sample consumers
were aware of Five Star, Good Day and Parle G. Besides, Dark Fantasy,Glucose biscuits,
Doritos, Cheetos, Ruffles and Chinese Hakka noodles awareness level was found to be
low among the consumers. In case of sandwich, none of consumers were aware of the
brands (Table 4.12).

4.3.6 Awareness of consumers about SSF companies


It could be seen from Table 4.13 that under chocolates the consumer awareness
about Cadbury Company was 54 per cent followed by Nestle 43 per cent. Among biscuits

Consumer Preference for Savory Snack Foods in Bengaluru City 37


Britannia, Parle and ITC were the companies better known to the consumers. Under
sandwich segment American fast food companies like McDonald’s and Subway were
known to the consumers. ITC and Pepsi foods were popular companies known to the
consumers in chips segment. 52 per cent of the consumers were aware of the popular
noodle manufacturing company Nestle.

Table 4.12: Awareness of selected brands of savory snack foods


(n = 90)
Sl. No. Brands Number of consumers Percentage
1. Chocolates
Five Star 37 41.11
Perk 17 18.89
Temptation 11 12.22
2. Biscuits
Good Day 35 38.89
Parle G 32 35.56
Hide and Seek 12 13.33
Maska Chaska 8 8.88
Krack Jack 7 7.77
Glucose 4 4.44
Dark Fantasy 3 3.33
3. Chips
Lay’s 60 66.66
Bingo 26 28.89
Pringles 12 13.33
Uncle chipps 8 8.88
Doritos 4 4.44
Cheetos 4 4.44
Ruffles 2 2.22
4. Noodles
Knorr Soupy 12 13.33
Chinese Hakka 4 4.44

38 Veena, V., M.Sc. (Agri.) 2015


Table 4.13: Awareness level of consumers about SSF companies
(n = 90)
Sl. No. Companies Number of consumers Percentage
1. Chocolates
Cadbury 49 54.44
Nestle 39 43.33
Amul 15 16.67
CAMPCO Ltd. 9 10.00
Hershey’s 7 7.77
2. Biscuits
Britannia 49 54.44
Parle 27 30.00
ITC Ltd. 27 30.00
Nestle 10 11..11
Kellogg’s 9 10.00
Kraft Foods 4 4.44
Unibic 2 2.22
3. Sandwich (Restaurants)
McDonald’s 21 23.33
Subway 17 18.89
Arby’s 6 6.66
Jumbo King 4 4.44
4. Chips
PepsiCo 48 53.33
ITC Ltd. 29 32.22
Herr’s 5 5.56
5. Noodles
Nestle 47 52.22
Nissin Foods 10 11..11
ITC Ltd. 6 6.67

Consumer Preference for Savory Snack Foods in Bengaluru City 39


4.3.7 Awareness about the ill effects of savory snack foods
SSFs are by and large considered as junk foods, not good for health. The
awareness about the ill effects of consuming SSFs by the consumers is presented in Table
4.14. It could be noticed that 77 per cent of consumers were aware of the ill effects and
the rest were not.

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

4.3.8 Personal experience of the ill effects of savory snack foods


It can be seen from the Table 4.15 that among the sample consumers 30 per cent
of the consumers experienced the ill effects and rest were not.

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

4.4 Factors influencing consumption


4.4.1 Regression coefficients of socio-economic factors influencing consumption of
savory snack foods
The impact of various socio-economic factors on consumption of SSFs was
analyzed using multiple linear regression analysis and the estimated results are presented
in Table 4.16. The dependent variable was the expenditure on SSFs while the
independent variables considered were age, gender, marital status, family type, family
size, monthly household income and food habits. The coefficient of multiple
determination was around 0.47 indicating 47 per cent of the total variation in the
dependent variable was accounted by the independent variables included in the function.
The coefficient for family size (554.60) and monthly household income (0.0075) were
significant at 1 per cent level of significance and were influencing the consumption of
SSFs.

40 Veena, V., M.Sc. (Agri.) 2015


4.4.2 Frequency of consumption of savory snack foods
Table 4.17 presents the frequency of consumption of SSFs and its graphical
representation is presented in Fig. 6. It is clear from the table that 42 per cent of the
consumers indicated that they consume chocolates as and when and followed by weekly
(41 %). 40 per cent of the consumers were consuming biscuits weekly and monthly,
whereas sandwich consumption was on monthly basis (60 %). 27 per cent of the sample
consumers consumed chips weekly and fortnightly. 47 per cent of the consumers
consumed noodles weekly.

4.4.3 Preferred occasion of consumption of savory snack foods


Garret‘s ranking technique was usedto analyze the data and to identify the
preferred occasion of consumption of SSFs. The sample consumers were asked to rank
the occasion of consumption.It could be inferred from the Table 4.18 that majority of the
consumers preferred to eat SSFs while watching TV and it is ranked first with the mean
score of 62.11 followed by travelling (61.94) and leisure time (58.22) ranked second and
third. The least preferred occasion of consumption was before bed time and after sports.

4.4.4 Place of consumption of savory snack foods


From the Table 4.19 it can be noticed that majority of the consumers preferred to
consume SSFs at home and it is ranked first with the mean score of 70.33 followed by
travelling ranked second (60.31) and work place ranked third (55.22). The least preferred
place to eat savory snacks was hospital (29.64).

Table 4.16: Regression coefficients of socio-economic factors influencing


consumption of savory snack foods
(n = 90)
Particulars Coefficients Standard Error t Stat P- value
Dependent variable Expenditure on savory snack foods
Independent variables
Intercept -825.60 1176.53 -0.70 0.48
Age (years) -12.22 21.35 -0.57 0.57
Gender (Female =1 and male =0) -101.29 243.98 -0.42 0.68
Marital status (Single =1 and married = 0) 267.32 405.85 0.66 0.51
Family type (Nuclear = 1 and joint = 0) 303.42 393.33 0.77 0.44
Family size 554.60** 153.61 3.61 0.00
Monthly household income (Rs.) 0.0075** 0.001 5.15 0.00
Food habit (Veg = 1 and non-veg = 0) -293.39 253.27 -1.16 0.25
R2 0.47
Adjusted R2 0.42
F- value 10.21
Note: **Significant at 1 per cent level

Consumer Preference for Savory Snack Foods in Bengaluru City 41


Table 4.17: Frequency of consumption of savory snack foods
(n =90)

Sl. Frequency of Chocolates Biscuits Sandwich Chips Noodles


No. consumption No. % No. % No. % No. % No. %
1. As and when 38 42.22 19 21.11 7 7.78 5 5.55 4 4.44
2. Daily 11 12.22 10 11.11 0 0 1 1.11 2 2.22
3. Twice a week 3 3.33 3 3.33 0 0 1 1.11 2 2.22
Once in two
4. 13 14.44 13 14.44 2 2.22 5 5.55 2 2.22
days
5. Weekly 37 41.11 37 41.11 14 15.56 24 26.67 42 46.66
6. Fortnightly 31 34.44 30 33.33 13 14.44 24 26.67 18 20.00
7. Monthly once 20 22.22 36 40.00 54 60.00 20 22.22 17 18.89
Once in two
8. 1 1.11 3 3.33 20 22.22 18 20.00 7 7.77
months
Note: Multiple responses were given by the consumer

Table 4.18: Preferred occasion of consumption of savory snack foods


(n = 90)
Sl. No. Particulars Mean score Rank
1. Watching TV 62.11 I
2. While travelling 61.94 II
3. Leisure time 58.22 III
4. During evening 55.94 IV
5. Vacation time 54.90 V
6. Morning tea time 54.47 VI
7. During parties 52.63 VII
8. When bored 49.26 VIII
9. Working/reading 47.17 IX
10. Before/after meal 37.62 X
11. As a reward 34.77 XI
12. During meals time 32.37 XII
13. Before bed time 31.13 XIII
14. After sports 28.31 XIV

42 Veena, V., M.Sc. (Agri.) 2015


70

60

Chocolates
50 Biscuits
Sandwich
Chips
Percentage

40
Noodles

30

20

10

Frequency of consumption

Fig. 6: Frequency of consumption of savory snack foods


Table 4.19: Place of consumption of savory snack foods
(n = 90)

Sl. No. Particulars Mean score Rank

1. Home 70.33 I

2. Travelling 60.31 II

3. Work place 55.22 III

4. Party 52.27 IV

5. Theatre 51.55 V

6. Shopping centre 50.72 VI

7. College 50.68 VII

8. Restaurant 45.85 VIII

9. Park 45.33 IX

10. Hostel 42.85 X

11. Hospital 29.64 XI

4.4.5 Reasons for consumption of savory snack foods


The most important reason for consumption of SSFs was due to its delicacy
followed by easy to consume and easy to buy and it is ranked first, second and third with
mean scores of 65, 62 and 60 respectively. Satisfy hunger, refreshment, munching and
less expensive than other stuff were some other reasons for consumption of SSFs (Table
4.20). Besides, non availability of conventional foods, to relax, fun, for energy, nutritious
and functional foods was some other reasons for the consumption of SSFs.

4.4.6 Peak season of consumption of savory snack foods


Table 4.21 indicates that 42 per cent of the consumers ate SSFs in rainy season.
38 per cent of them consumed during winter season. 15 per cent preferred to consume
during summer. Only 4 per cent of the consumers were consuming during spring season
(Fig.7).

Consumer Preference for Savory Snack Foods in Bengaluru City 43


Table 4.20: Reasons for consumption of savory snack foods
(n = 90)

Sl. No. Reasons Mean score Rank

1. Delicious 65.01 I

2. Easy to consume (convenience) 61.70 II

3. Easy to buy 59.87 III

4. Satisfy hunger 56.68 IV

5. Refreshment 52.37 V

6. Munching 49.02 VI

7. Less expensive than other stuff 46.08 VII

8. Non availability of conventional foods 43.59 VIII

9. To relax 41.04 IX

10. Fun 40.48 X

11. For energy 40.21 XI

12. Nutritious 38.19 XII

13. Functional foods 36.80 XIII

Table 4.21: Peak season of consumption of savory snack foods


(n = 90)

Sl. No. Peak season Number of consumers Percentage to total

1. Winter 34 37.78

2 Summer 14 15.56

3. Rainy 38 42.22

4. Spring 4 4.44

Total 90 100

44 Veena, V., M.Sc. (Agri.) 2015


4%

38 %

Winter
42 % Summer
Rainy
Spring

16 %

Peak season of consumption

Fig. 7: Peak season of consumption of savory snack foods


4.5 Promotional strategy of food manufacturers
4.5.1 Impact of promotional strategy of branded SSFs on consumers purchase
behavior.
Many of the SSFs are well known brands. Some are international brands like
McDonalds, Pepsi and many are national brands. These companies spend huge amount to
promote the company brand as well as product brands. There is intense competition in the
market space for these products. With respect to branded SSFs, it is clear from the Table
4.22 that the consumers attached highest score (66.71) for attractive packaging followed
by TV programme (63.23). The least score was assigned to banners (38.59). The other
important promotional strategies impacting the purchase behavior of branded SSFs were
price discounts, quantity offers, endorsement by celebrities, outdoor billboard, radio,
sponsoring the events, exhibitions, coupons, posters, special occasion sales, free samples,
caption of advertisements, print media and free donations.

4.5.2 Impact of attractive packaging on purchase of savory snack foods


From the Table 4.23 it can be seen that attractive packaging has greater impact on
buying behavior for chocolates. The purchase behavior of the sample consumers was also
influenced by attractive packaging of biscuits followed by noodles.

4.5.3 Factors influencing the advertisement strategy


From Table 4.24 it can be noticed that majority of the sample consumers indicated
that creative advertisements (55.89) was the most important factor influencing the
advertising strategy followed by brand ambassador (50.89), frequency of ads (49.89),
message content (47.72) and logical reason (40.89).

Consumer Preference for Savory Snack Foods in Bengaluru City 45


Table 4.22: Impact of promotional strategies of branded SSFs on consumers
purchase behavior
(n = 90)

Sl. No. Particulars Mean score Rank


1. Attractive packaging 66.71 I
2. TV Programme 63.23 II
3. Price discounts 57.46 III
4. Quantity offers 56.09 IV
5. Endorsement by celebrities 55.36 V
6. Outdoor billboard 51.18 VI
7. Radio 49.49 VII
8. Sponsoring the events 48.57 VIII
9. Exhibitions 47.87 IX
10. Coupons 47.87 IX
11. Posters 47.59 XI
12. Special occasion sales 45.57 XII
13. Free samples 43.16 XIII
14. Captions of advertisements 41.81 XIV
15. Print media (Booklet, Newspaper, Magazines, Leaflets) 40.28 XV
16. Free donations 38.97 XVI
17. Banners 38.59 XVII

Table 4.23: Impact of attractive packaging on purchase of savory snack foods


(n = 90)

Types of savory snack foods Standardized Scores Rank


Chocolates 9450 1
Biscuits 8775 2
Noodles 8125 3
Chips 7675 4
Sandwich 7000 5

46 Veena, V., M.Sc. (Agri.) 2015


Table 4.24: Factors influencing the advertisement strategy
(n = 90)

Sl. No. Particulars Mean score Rank

1. Creative advertisements 55.89 I

2. Brand ambassador 50.89 II

3. Frequency of ads 49.89 III

4. Message content 47.72 IV

5. Logical reason 40.89 V

4.5.4 Purchase decision as influenced by advertisements


The purchase decision as influenced by advertisements is presented in table 4.25.
It is clear from the table that, 62.22 per cent of the consumers were influenced by
advertisements to purchase SSFs while the rest 38 per cent were not interested.

Table 4.25: Purchase decision as influenced by advertisements


(n = 90)

Sl. No. Particulars Number of consumers Percentage to total

1. Yes 56 62.22

2. No 34 37.78

Total 90 100

Consumer Preference for Savory Snack Foods in Bengaluru City 47


V DISCUSSION
The results of the analysis carried out for fulfilling the objectives of the study are
discussed in this chapter under the following headings.

5.1 Socio-economic characteristics of consumers of savory snack foods (SSFs)


5.2 Purchasing behavior of the consumers
5.3 Awareness level consumption pattern
5.4 Factors influencing consumption
5.5 Promotional strategy of food manufacturers

5.1 Socio-economic characteristics of consumers of SSFs


Among the sample consumers, majority of the consumers were South Indians and
the rest were North Indians (Table 4.1). The highest percentage of Indian population as
per 2011 census is in the age group of below 35 years. It can be noticed in the present
study too, majority of the sample respondents aged between 21 and 30 years. This age
group consists of younger population including college students are aspiration consumers
form the biggest chunk of SSF consumers. Nearly 7 per cent were in the age group of up
to 20 years. 67 per cent of the sample consumers belonged to 21 to 30 years. About 23
per cent were in the age group of 21 to 40 years. Only 3 per cent of the sample consumers
were in age of above 50 years. This is in accordance with the findings of Singh (2014)
and Erdogan et al. (2011).

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).

Occupation of the consumers plays an important role in consumer spending on


SSF. The highest number of respondents were from the category of students (29 per cent)
followed by private sector employees (21 %) and IT (18 %). 12 per cent of the consumers
were government employees. 9 per cent were involved in business. Nearly 11 per cent
were homemakers.

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

Consumer Preference for Savory Snack Foods in Bengaluru City 48


consisting of less than or equal to three members (parents and one or two children). Only
3 per cent were large family size consisting of more than six members. This may be due
to increasing urbanization, increase in younger population and perception of advantages
of nuclear families by the consumers. The results of the study are in line with the study
conducted by Khusrawy (2014).

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.

As the level of income increases there is a tendency among the consumers to


spend more on food. The sample consumers in the income range of Rs. 20,001 to 30,000
per month were found to spend an average of Rs. 4001 to 8000 per month on food.
Similarly, the sample households with a monthly income of Rs.10,001 to 20,000 spend an
amount of Rs. 1001 to 4000 on food. Sample consumers with a monthly income of Rs,
30,001 to 50,000 spend Rs. 8001 to 12,000 per month on food. This means to say that the
middle income consumers spend an increased proportion of their income on food. Very
few sample consumers in the income range of Rs. 50,000 and above monthly household
income spent more than Rs. 12,000 per month on food.

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).

49 Veena, V., M.Sc. (Agri.) 2015


5.2 Purchasing behavior of the consumers
5.2.1 Factors influencing purchase decision of savory snack foods
Majority of the consumers of SSFs were influenced by TV advertisements (84 %),
since television plays an important role in creating awareness and demand and one of the
most important mass media in today’s world. About 82 per cent of them were influenced
by friends and neighbors as it is easy to gather information through word of mouth. Apart
from these, children were also found to be influencing to buy SSFs. About 61 per cent of
the consumers were influenced by shop keepers as they are the one who are aware of the
product and its advantages (Table 4.2).

More than 50 per cent of the consumers were influenced by advertisements in


newspaper as the literacy level of the sample consumers was found to be high. Hence,
they collect information by reading newspapers. Parents influenced about 53 per cent of
the consumers. 43 per cent of consumers were also influenced by promotional staff of
company as they play an important role in disseminating the information regarding SSFs.

5.2.2 Frequency of purchase of savory snack foods


The frequency of purchase of SSFs is presented in Table 4.3. It was observed that
29 per cent of the consumers purchased chocolates as and when they needed. It was
found that consumers consumed chocolates whenever they felt so. This is mainly because
of the nature of the product as such. Chocolates are available every day in nearby location
and hence one time purchase is not in practice. About 24 per cent of the consumers
purchased chocolates in weekly and monthly basis. About 23 per cent of the consumers
purchased daily (4 %), twice a week (18 %) and once in two days (1 %).

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.

With regard to sandwich, majority (60 %) of the consumers purchased monthly


once followed by weekly (13 %). This means, consumers generally purchases once in a
month and weekends. It was also found that only 2 consumers were buying daily and
twice a week. More than 45 per cent of the consumers purchase chips monthly once. 33
per cent purchased weekly followed by twice a week (13 %). Nearly 7 per cent of the
sample consumers preferred to buy as and when they needed and 8 per cent of the sample
consumers buy once in two days. Only 2 per cent of the consumers purchased daily.

Majority (44 %) of the consumers purchased noodles monthly once followed by


weekly (34 %). This indicate that noodle purchase forms part of planned regular buying
along with grocery items monthly followed by weekly. About 4 per cent of them were
purchased as and when they needed. And one consumer used to purchase twice a week
and once in two days. Similar results were reported in the study conducted by Uma et al.
(2012).

Consumer Preference for Savory Snack Foods in Bengaluru City 50


5.2.3Nature of purchase decision of savory snack foods
Purchase decision may be planned or instantaneous. Majority (71 %) of the
sample consumers purchase decision for chocolates was impulsive in nature while the
remaining (29 %) were planned (Table 4.4). this may be due to fact that most of the
consumers were influenced by friends and neighbors. About 62 per cent of the consumers
purchase decision for biscuits was planned since, children and parents both have a
tendency of eating biscuits in morning and evening times. 38 per cent of the consumers of
biscuit were impulse buyers.

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.

5.2.5 Attributes considered while purchasing savory snack foods


Factor analysis was used to identify the attributes considered while purchasing
SSFs by the consumers. The major advantage of factor analysis is to delineate and group
different variables which are correlated. Thus, factor analysis is useful in studying the
important dimensions on which consumers’ make choices.

51 Veena, V., M.Sc. (Agri.) 2015


The Kaiser-Meyer-Olkin (KMO) measure was found to be 0.499. It is indicated
that the factors extracted will account for fair amount of variance. The overall
significance of correlation matrices is tested with Bartlett test of Sphericity provided
support for the validity of the factor analysis of the data set (Table 4.6).

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

Consumer Preference for Savory Snack Foods in Bengaluru City 52


sensitive towards price because they want value for money. Consumers can choose from
large number of flavors.

Factor 6 is labeled as ‘attractive packaging’, collects variables that relate to


packaging and children preference. A high score on this factor reveals that packaging
attracts consumers including children. Factor 7 collects variables with higher loadings
relating to consumer’s general attitude with respect to nutrition, healthy food and fits my
budget. Therefore, this factor is labeled as ‘healthy and accessibility”. Factor 8 collects
only one variable that relate to the location of outlet. Hence, it is labeled as
‘convenience’. Such consumers who score high on distance of the outlets have strong
liking to buy SSFs owing to store proximity.

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.

5.2.6 Recommendation to other consumers regarding purchase of SSFs


It can be noticed from the Table 4.8 that more than 57 per cent of the consumers
are willing to suggest others to buy SSFs as these foods are delicious and pleasing to the
taste of the consumers. And the rest (43 %) stayed neutral.

5.3 Awareness level and consumption of selected savory snack foods


5.3.1 Awareness about SSFs among the sample consumers
Form the Table 4.9 it can be inferred that among the sample consumers the
awareness about SSFs was cent percent. It was found that the sample consumers are well
educated. This may be the reason for the cent percent awareness about SSFs.

5.3.2 Awareness level about selected savory snack foods


The promotional activities play a major role in creating awareness about SSFs. It
is quite obvious that frequent advertisements through TV, attractive packaging and
discounted prices plays significant role in creating awareness about SSFs.

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.

53 Veena, V., M.Sc. (Agri.) 2015


Majority (97 %) of the consumers indicated that they were aware of Marie biscuit.
92 per cent of the consumers were aware of Oreo followed by Bourbon (88 %), other
brands (63 %), Custard Cream (37 %) and Coconut Macaroon (30 %). None of the
consumers were aware of sandwich brands. As sandwich is known for taste, most of the
consumers opine that unbranded sandwiches are tastier.

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 %).

5.3.3 Consumption pattern of selected savory snack foods


Majority (82 %) of the consumers consumed Dairy Milk followed by Munch (57
%). Since, 29 per cent of the sample consumers were found to be students. This is quite
obvious that students consume more of chocolates. 44 per cent of the consumers
consumed Kitkat. 49 per cent of the consumers ate other chocolates. 25 consumers
consumed Nut Crunch. The consumption level of Toffee Crisp was found to be low
(Table 4.10).

Majority (71 %) of the consumers consumed Marie biscuit followed by Bourbon


(61 %) and Oreo (49 %). It is interesting to note that Marie biscuit was most consumed
among the sample consumers irrespective of age. Hence, the consumption was high for
Marie biscuit. About 36 per cent of the consumers indicated that they consumed Custard
Cream and Coconut Macaroon.

With regard to sandwich, 62 per cent of the consumers preferred to consume


pavbhaji followed by vadapav (59 %) and breakfast roll (49 %). This is due to taste,
pungency and availability of the sandwich. Nearly 19 per cent of the consumers had Ham
and Egg bun and 14 per cent were used to consume Hamburger. The consumption level
for potato chips was highest (94 %) among the consumers while Curly peanut puffs
consumption was low (8 %). It is interesting to note that majority of the consumers like
chips irrespective of age as these are consumed along with main meals as starters.
Therefore, the consumption level for potato chips was found to be high. It was also
observed that more than half (50 %) of the consumers consumed banana chips followed
by corn chips (46 %). About 13 per cent of the sample consumers consumed Tortilla
chips.

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.

Consumer Preference for Savory Snack Foods in Bengaluru City 54


5.3.4 Awareness about quality of savory snack foods
From Table 4.11 it is seen that majority (97 %) of the consumers first check the
expiry date. 69 per cent of the consumers having knowledge about nutrients content in
the label while, remaining 31 per cent have no idea. Nearly 68 per cent were aware of
ingredients gone into the preparation of SSFs and the rest (32 %) were not aware. 70 per
cent know the harmful effects. About 75 per cent of the consumers were aware of
benefits of consuming SSFs while the remaining 24 per cent were not aware. The
awareness level about the quality of SSFs among the consumers was found to be high.
This may be due to the reason that SSFs are to be of good quality and health issues
concerned. The literacy level also plays a significant role in awareness level about the
quality of SSFs.

5.3.5 Awareness level about selected brands of savory snack foods


It was observed from the Table 4.12 that all the popular brands were known to the
sample consumers. In case of chocolates, 41 per cent of the sample consumers were
aware of Five Star followed by Perk (19 %) and Temptation (12 %). With respect to
biscuits, more than 30 per cent of the sample consumers were aware of Good Day, Parle
G and Coconut Macaroon. 13 per cent were aware of Hide and Seek. About 24 per cent
of the sample consumers were aware of Maska Chaska, Krack Jack, Glucose and Dark
Fantasy. None of the sample consumers were aware of sandwich brands.

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.

5.3.6 Awareness of consumers about SSFs companies


The consumers’ awareness level for the company’s manufacturing SSFs is shown
in Table 4.13. It was found that 54 per cent of the consumers were aware of Cadbury as it
is being the market leader in the chocolate industry in India. It also provides wide range
of SSFs like Dairy Milk, Crispy Crunch, Caramilk etc. Nestle was known to 43 per cent
of the consumers. About 17 per cent had idea about CAMPCO Ltd. and Amul. The
awareness about the Hershey’s was found to be the least (8 %).

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.

55 Veena, V., M.Sc. (Agri.) 2015


The awareness level about PepsiCo was highest (53 %) among the sample
consumers followed by ITC Ltd (32 %). PepsiCo with its subsidiary Frito-Lay is the
leading segment in the branded savory snacks across world with a market share of 50 per
cent. Only 6 per cent were aware of Herr’s company. In case of noodles, 52 per cent of
the sample consumers were aware of Nestle as it is market leader in India with a market
share of 63 per cent. Hence, it is known to the consumers. About 17 per cent of the
consumers indicated that they have the knowledge about Nissin Foods and ITC Ltd.

5.3.7 Awareness about the ill effects of savory snack foods


More than 75 per cent of the consumers were aware of the ill effects of
consuming SSFs. This is due to increase in the health consciousness among the
consumers. 23 per cent were not aware (Table 4.14).

5.3.8 Personal experience of the ill effects of savory snack foods


30 per cent of the consumers experienced ill effects of SSF consumption. So
tempting are these products that people risk hypertension, obesity, cardiovascular heart
diseases, diabetes etc. rather than give up these products. It is generally perceived that
many of the SSFs are junk foods which are not healthy foods. Media have sufficiently
exposed the dangers of consuming especially chips by children. 70 per cent of the sample
consumers were not faced any ill effects (Table 4.15).

5.4 Factors influencing consumption


5.4.1 Regression coefficients of socio-economic factors influencing consumption of
savory snack foods
The results of the study show that the family size and monthly household income
significantly influence the monthly household expenditure on SSFs (Table 4.16).
Specifically, as household income increases total monthly household expenditure on SSF
expected to increase. The analysis shows that one rupee increase in income results in Rs.
0.0075 increase in monthly household expenditure on SSFs. Household income is
important as it determines how much can be spent on various needs of the household. The
quantity and quality of a household’s expenditure patterns are highly correlated with the
purchasing power of the household. Larger households are also associated with increased
expenditure. With one member increase in family the monthly household expenditure
increases by Rs. 555. These results are in consistent with those of Davis et al. (1983) who
concluded that household income and household size exert a significant positive impact
on household expenditure on food.

5.4.2 Frequency of consumption of savory snack foods


Table 4.17 reveals that frequency of consumption of SSFs by the consumers. It
can be observed that 42 per cent of the consumers consume chocolates as and when. As
chocolates are known for taste, consumers prefer to eat chocolates based on their mood.
About 41 per cent of consumers consumed chocolates weekly followed by fortnightly (34
%) and monthly (22 %). About 30 per cent of the consumers were consumed once in two
days, daily, twice a week and once in two months.

Consumer Preference for Savory Snack Foods in Bengaluru City 56


It was found that biscuits were consumed weekly (41 %). It is interesting to note
that irrespective of age, biscuits were consumed in the morning tea time. 40 per cent of
the consumers consuming monthly followed by fortnightly (33 %), as and when (21 %),
once in two days (14 %), daily (11 %) and 3 per cent consume twice a week and once in
two months.

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 consumption of Maggie noodles was on weekly (47 %) basis followed by


fortnightly (20 %). It is quite obvious that children influenced their family members to
consume Maggie noodles. 19 per cent of the consumers consumed monthly once. About
11 per cent consuming once in two months and as and when they needed. Only 2 per cent
of the consumers were indicated that they consumed daily, twice a week and once in two
days.

5.4.3 Preferred occasion of consumption of savory snack foods


The most preferred occasion to consume SSFs was while watching TV, travelling,
leisure time, evening, during vacation time and morning tea time. The consumers were
also preferred to consume moderately during parties, when bored, working/reading,
before/after meal, as a reward and during meals time. Before bed time and after sports
was found to be least preferred occasion for the consumption of SSFs (Table 4.18). The
significant findings attributed to the reason for consuming SSFs while watching TV. This
was time consumers used to relax by watching their favorite programmes and in order to
have fun they preferred to eat tasty foods.

5.4.4 Place of consumption of savory snack foods


From the Table 4.19 it can be noticed that consumer’s highly preferred to
consume SSFs at home and ranked it as first with a mean score of 70.33. This is due to
the reason that in spite of consumers busy schedule they find sufficient time to spare with
their family members, friends and relatives during special occasions and events at their
home. Also consumers preferred to eat while travelling, work place, party, theatre,
shopping centre, college and restaurant. In general consumers also preferred to consume
in others places like park and hostel. It was found that hospital was the least preferred
place by the sample consumers to consume SSFs.

57 Veena, V., M.Sc. (Agri.) 2015


5.4.5 Reasons for consumption of savory snack foods
Table 4.20 indicated the reasons for consumption of SSFs. Delicious were
considered as foremost factor with a mean score of 65.01. Easy to consume
(convenience) was considered as the second important reason and easy to buy resulted as
third reason followed by satisfy hunger and refreshment. The other important reasons for
the consumption of SSFs were found to be munching, less expensive than other stuff, non
availability of conventional foods, to relax, fun and energy. Nutritious and functional
foods were some other reasons for consuming SSFs by the consumers.

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.

5.4.6 Peak season of consumption of savory snack foods


The highest (40 %) consumption of SSFs is rainy season followed by winter (37
%), summer (15 %). Nearly 4 per cent of the consumers consumed during spring season
(Table 4.21). The highest consumption was in rainy season. This is because most of the
consumers prefer to consume hot and crispy items during the rainy day.

5.5 Promotional strategy of food manufacturers


5.5.1 Impact of promotional strategies of branded SSFs on consumers purchase
behavior
The impact of promotional strategies of food manufacturers on the purchase of
SSFs was analyzed and the results are presented in Table 4.22. It was found that the
consumers attached highest score to attractive packaging and ranked it first with mean
score of 66.71 followed by TV programme. This indicates that packaging elements like
packaging color, background image, packaging material, design of wrapper, printed
information and innovation and aggressive advertisements were influenced consumer’s
purchase decision. The least score was assigned to banners (38.59). The other important
promotional strategies were price discounts, quantity offers, endorsement by celebrities,
outdoor billboard, radio, sponsoring the events, exhibitions, coupons, posters, special
occasion sales, free samples, captions of advertisements, print media and free donations.
These findings contradict the findings of the study conducted by Wai-Leng (2010).

5.5.2 Impact of attractive packaging on purchase of savory snack foods


Attractive packaging has greater impact on buying behavior for chocolates with a
standardized score of 9450. This indicates that packaging elements like packaging color,
background image, packaging material, design of wrapper, printed information and
innovation were influencing the consumers purchase decision. The purchase behavior of
the sample consumers was also influenced by attractive packaging of biscuits followed by
noodles and chips. Attractive packaging has lesser impact on buying behavior for
sandwich (Table 4.23).

Consumer Preference for Savory Snack Foods in Bengaluru City 58


5.5.3 Factors influencing the advertisement strategy
From the Table 4.24, it can be seen that creative advertisements (55.89) was the
foremost factor influencing the advertisement strategy. Brand ambassador was considered
as second important factor followed by frequency of ads, message content and logical
reason.

5.5.4 Purchase decision as influenced by advertisements


Purchase decision as influenced by advertisements is presented in Table 4.25. It is
clear from the table that 62 per cent of the consumers were influenced by advertisements
to purchase SSFs and the rest (38 %) were not interested. As SSFs were popular due to
pleasant and aromatic taste most of the consumers were attracted towards these foods and
willing to purchase SSFs.

59 Veena, V., M.Sc. (Agri.) 2015


VI SUMMARY AND SUGGESTIONS
Savory snack foods (SSFs) are foods which are pleasing to the taste, something
one can really chew on extra long and really relish the flavor. It is simply called as
crunchy junk food. These are popular due to their taste, delicacy, flavor, spiciness and
pungency. SSFS are eaten in between main meals or during meal time. It includes
chocolates, biscuits,sandwich, chips, noodles etc. As per the survey conducted by
APEDA, about 300 types of snack foods are marketed in India (2012).

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.

Consumer’s willingness to pay for branded products created immense


opportunities for manufacturers to innovate newer products. There is a widespread
recognition in India that consumers are likely to replace light meals with SSFs. Per capita
consumption of SSFs in India (0.4 kg) remains just a fraction of that in developed parts of
the world, which reflects an immense growth opportunity. Some companies are looking
at rural India to widen the market base. For instance, many food companies had plans to
make their products available in small towns and rural areas, which were earlier confined
only to cities. A large number of small players catering to the local market with crude
packaging offer various SSF items at a discounted price to the local retailers. This implies
that there is ready demand for unbranded SSF as well.

The increasing importance in SSFs in the consumption basket highlights the


growth potential for this sector. Keeping this in view, the study aims at addressing the
following specific objectives.

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

Consumer Preference for Savory Snack Foods in Bengaluru City 60


covering the entire Bengaluru City. The data collected for the study was analyzed using
Descriptive statistics, Multiple linear regression analysis, Garrett’s ranking technique,
Factor analysis, Likert scale and Standardised scores.

6.1 Major findings of the study

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.

8. Majority (84 %) of the consumers were mainly influenced by advertisements in


TV, followed by friends and neighbors (82 %).

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.

61 Veena, V., M.Sc. (Agri.) 2015


13. The awareness level for potato chips was cent percent. Maggie noodles, banana
chips (98 %), Dairy Milk (97 %), Marie biscuit (97 %), Munch (95 %), Oreo,
Kitkat (92 %), and Bourbon biscuits (89 %) awareness level was highest among
the respondents.

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.

Consumer Preference for Savory Snack Foods in Bengaluru City 62


27. Creative advertisements with a mean score of 56 were the most important factor
influencing advertisement strategy followed by endorsement by celebrities (29).

28. Around 62 per cent of the sample consumers were influenced by advertisements
to purchase SSFs.

6.2 Suggestions

1. Brand positioning helps in increased sales.

2. Constant efforts are required to attract the customers by designing attractive


packages.

3. The SSF companies should develop products of traditional dishes of India with
focus on taste as consumers preferred SSF for its taste.

63 Veena, V., M.Sc. (Agri.) 2015


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Consumer Preference for Savory Snack Foods in Bengaluru City 70


DEPARTMENT OF AGRICULTURAL MARKETING, CO-OPERATION AND
BUSINESS MANAGEMENT
UNIVERSITY OF AGRICULTURAL SCIENCES, GKVK, BENGALURU-560 065

“Consumer Preference for Savory Snack Foods in Bengaluru City”

Interviewer: Veena, V. Place:…… ………..

Date of Interview: …………… Contact No:…………….

I Socio - Economic Profile / Status


1) Name: …………………….
2) Locality: …………………..
3) Domicile status:
a) North Indian b) South Indian
4) Age: …………yrs
5) Gender: Male/Female
6) Education:
a) Primary School b) High School c) Pre-University
d) Graduation e) Post-Graduation
7) Occupation:
a) Student b) Government employee c) Business
d) Homemaker e) Private sector employee f) IT
8) Marital Status:
a) Single b) Married
9) Type of family:
a) Nuclear b) Joint
10) Family composition:
Sl.
Relation Gender Age (yrs) Education Occupation
No.
1
2
3
4
11) Monthly household income from all sources(Rs.):
a) 5,000-10,000 b) 10,000-20,000 c) 20,000-30,000
d) 30,000-50,000 e) 50,000-1 Lakh f) 1-2 Lakh g) >2 Lakh

12) Food habits:


a) Vegetarian
b) Non – Vegetarian
- by birth
-switched over

Consumer Preference for Savory Snack Foods in Bengaluru City 71


13) Are you aware of savory snack foods? Yes/ No
If yes, which are all the savories you are aware off?
Note: frequency of consumption means as and when, daily, weekly, weekly twice
monthly.
Frequency of
Name of the savory snack food Mark Most consumed
consumption
I. Chocolates
Dairy milk
Nut crunch
Kitkat
Toffee crisp
Munch
Others
II. Biscuits
Bourbon
Coconut macaroon
Custard cream
Oreo
Marie biscuit
Others
III. Sandwich
Vada pav
Pav bhaji
Hamburger
Ham & egg bun
Breakfast roll
Others
IV. Chips
Potato chips
Banana chips
Curly peanut puffs
Corn chips
Tortilla chips
Others
V. Noodles
Cup noodles
Yippie
Top Ramen
Fried vermicelli
Maggi
Others

72 Veena, V., M.Sc. (Agri.) 2015


14) When do you consume?
Please, (rank them according to order of importance from 1to14)
Particulars Rank
Morning tea time
Leisure time
Vacation time
While travelling
Watching TV
During parties
Before/ after meal
During meals time
Working /reading
During evening
As a reward
To relax
After sports
Before bed time

15) Place of consumption


Please, (rank according to order of importance from 1to 11)
Place of consumption Rank
Home
Shopping centre
Work place
Theatre
College
Party
Restaurant
Hospital
Park
Travelling
Hostel

Consumer Preference for Savory Snack Foods in Bengaluru City 73


16) Why do you eat savory snack foods
Please, (rank according to order of importance from 1 to 13)
Reasons Rank
Delicious
Nutritious
Easy to buy
Easy to consume (convenience)
Satisfy hunger
Non availability of conventional foods
Functional foods
For energy
Munching
Fun
Refreshment
To remove boredom
Less expensive than other stuff

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?

Sl. No. Factors Mark


1 Parents
2 Children
3 Friends and neighbours
4 Shop keepers
5 Promotional staff of company
6 Advertisement in TV
7 Advertisement in Newspaper

74 Veena, V., M.Sc. (Agri.) 2015


21) Frequency of purchasing savory snack foods
Sl. No. Frequency of purchase Type of snack
1 As and when
2 Daily
3 Twice a week
4 Once in two days
5 Weekly
6 Monthly once
7. Others

22) Peak season of consumption of savories


a) Winter b) Summer c) Rainy d) Spring

23) Would you suggest others to buy savory snack foods?


a) Yes b) No

24) Nature of purchase decision


Nature of purchase
Chocolates Biscuits Sandwich Chips Noodles
decision
Impulse
Planned

25) Mention which savory snack foods you buy from


a) Modern retail formats…………………..
b) Kirana Stores…………………
c) Departmental stores………….
d) Retail shops in shopping malls………………
e) Bakeries……………….
f) Others……………………

Consumer Preference for Savory Snack Foods in Bengaluru City 75


26) What attributes do you look for while purchasing savory snack foods?

Please, rank these attributes in the order of importance.

Sl. No. Attributes Rank


1. Quality of product
2. Low Price
3. Nutrition
4. Taste
5. Packaging
6. Product range
7. Brand loyalty
8. Location of outlet
9. Healthy
10. Advertisements
11. Ingredients are displayed on the pack
12. Absence of additives/chemicals
13. Children preference
14. Availability of many flavors
15. Products are well recognized
16. Fits my budget

27) What makes you decide to purchase a particular product?


Please, rank according to order of importance.
Particulars Rank (1-17)
Attractive packaging
Outdoor billboard
TV Program
Radio
Print media( Booklet, Newspaper, Magazines, Leaflets)
Sponsoring the events
Exhibitions
Endorsement by celebrities
Coupons
Price discounts
Quantity offers
Free samples
Special occasion sales
Free donations
Captions of advertisements
Banners
Posters

76 Veena, V., M.Sc. (Agri.) 2015


28) Does packaging attracts you to buy snack foods?
Mark these as (SD-Strongly disagree, D-Disagree, N-Neutral, A-Agree, SA-
Strongly agree).

Type of the savory snack SD D N A SA


Chocolates
Biscuits
Sandwich
Chips
Noodles

29) What attracted you in the advertisement?


( Please rank them from 1-5)
Sl. No. Particulars Rank
1 Creative advertisements
2 Brand Ambassador
3 Message content
4 Frequency of ads
5 Logical reason

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…………….

33) Any suggestions to promote Savory snack foods?

34) Are you aware of the ill effects of savory foods? Yes /No
If yes indicate the ill effects
a.
b.

Consumer Preference for Savory Snack Foods in Bengaluru City 77


35) Did you personally experienced any of the ill effects? Yes/No.
If yes indicate the ill effects
a.
b.

78 Veena, V., M.Sc. (Agri.) 2015

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