Chapter - II

•Review ofLiterature
 CHAPTER -
II REVIEW OF
LITERATURE

Milk is an indispensable item of consumption for human beings. Man and

milch animal lived in proximity and their relationship dates back to the origin of
civilisation. Prior to urbanisation, the usual practice was to consume milk in its fresh
form or after simple processing. The extra milk was converted into short-term
conserved products or puddings that were consumed in a phased and leisurely
manner. But the urbanisation alienated the modern man from the milch animal away
from each other resulting in the need for processing and packaging of milk. Milk gets
an important place in the human dietary system. The consumers play a vital role in
the marketing of dairy milk. Marketing of fluid milk is different when compared to
other consumer goods. Several factors influence the consumers in buying the milk.

It is desirable to review the relevant literature while handling a research

problem . A review of literature places a research study in its proper perspective by
showing the amount of work already carried out in the related areas of the study. The
following are the studies, which enabled the researcher to undertake this study.
Studies on consumer behaviour exclusively in fluid milk in Indian context are scanty.
Hence, studies on milk and milk products in India and also in abroad are briefly
reviewed here.

The literature pertaining to the topic "A STUDY ON BUYER BEHAVIOUR OF

URBAN HOUSEHOLDS IN FLUID MILK MARKETS WITH REFERENCE TO
COIMBATORE DISTRICT" presented and discussed under the following heads :
2.1 Consumption Pattern of Fluid Milk.
2.2 Awareness, Preference and Perception of Fluid Milk and
2.3 Brand Preferences for Fluid Milk.

2.1 CONSUMPTION PATTERN OF FLUID MILK

Singh and Pate l1 (1986 ) studied the effect of socio-economic parameters on

the consumption pattern of milk and milk products. A survey of 100 rural and

1. Singh, B. and Patel, R.K., (1986) , "Effect of Socio-Economic Parameters on

Consumption Pattern of Milk and Milk Products", Asian Journal of Dairy Research,
28(5): 172.
 28

60 urban households in Munzffanagar district of Western Uttarpradesh showed that

adult males generally accounted for the largest share in the consumption of milk
products than on liquid milk. Consumption of milk and milk products was higher in
households with agricultural occupations, keeping dairy animals. It was also highest
in rainy season and lowest in summer.

Satya Prakash Singh and Raghbir Singh2 (1986) investigated the relationship
between income and consumption of milk products in Chandigarh area. It was found
that the average monthly consumption increased with income for all milk products.
Milk products produced by all the sectors organised, unorganised and home made
showed a dominance of the organised sector in all income groups.

Swamalatha Arya and Kuber Ram3 (1988 ) in their survey on factors affecting

consumption pattern of milk and milk products in rural and urban areas of the Kamal

district of Haryana state with the sample of 240 households (140 from urban and
100 from rural) post stratified the sample households into occupational groups,
per capita expenditure class, type of consumers and vegetarian and non-vegetarian
groups. The log-linear multiple regression analysis was employed to measure the
contribution of various factors affecting expenditure on milk and milk products. The
major findings of the study revealed that the average per capita total expenditure was
almost double in the urban areas as compared to rural areas. In urban areas, the per
capita expenditure was highest in the business class followed by farmer and service
class. Per capita total expenditure was highest in case of non-commercial milk
producer households both in urban as well as rural areas followed by commercial
milk producer and per capita total expenditure was lowest for non-producer
consumer households. The average total monthly expenditure on milk and milk
products was of higher order in non-vegetarian groups as compared to vegetarian
groups both in rural and urban areas. The food habits of the consumers did not have
any significant impact over the capita expenditure on milk and milk products.
The study concluded that the independent variable namely per capita monthly total
expenditure, family size, education status of the family members and food habit of
the households largely influence per capita expenditure on milk and milk products.

2. Satya Prakash Singh and Raghbir Singh, (1986) , "Consumption of Milk Products and
Income", Margin, October 19 (1): 50-57.
3. Swamalatha Arya and Kuber Ram, (1988) , "Factors Affecting Consumption Pattern of
Milk and Milk Products in Rural and Urban Areas", Indian Journal of Dairy Science,
41(1): 46-52.
 29

Vijay Paul Sharma and Rajvir Singh4 (1989 ) analysed the consumption
pattern of milk in the rural areas of Himachal Pradesh. Average milk consumption per
capita per day increased both in the project area and the non-project area on
different categories of households. However the proportion of milk consumed
decreased and that of marketable surplus increased with an increase in milk
production. In the project area, out of total consumption, about 58 per cent was
consumed in the form of liquid milk and 42 per cent in the form of milk products like
ghee and curd.

Sharma and Ram5 (1991) in their study aimed to examine the seasonal

variations in consumption pattern of weaker section of households with special

reference to milk and the milk products in Sharanpur district with the objectives
namely, to study the consumption pattern of weaker section households with special
reference to milk and milk products in different seasons ; to estimate inequalities in
the distribution of consumer expenditure in different seasons and to estimate
expenditure and income elasticity of consumer items in different seasons. A random
sample of 195 households were drawn from each category of weaker section
households namely, landless labourers, marginal farmers and small farmers
according to probability proportion to size criterion. Inequalities in distribution of
consumption expenditure, expenditure and income elasticities in various seasons
were estimated from Gini concentration ratio and Engel functions. Expenditure
elasticities in different seasons were in the order summer > rainy > winter for ghee
and summer > winter > rainy for milk and milk products. Expenditure elasticities
tended to be greater for milk and milk products, pure ghee and non-food items than
for total food items.

Rajendran and Prabhakaran6 (1993 ) studied the consumption of milk under

different categories of farmers in Pappireddipatty block of Dharmapuri district.

The study concluded that the per capita consumption of milk per day was observed

4. Sharma, V.P. and Singh, R.V., (1994) , "Economic Analysis of Milk Production,
Consumption and Disposal Pattern in Rural Areas in Himachal Pradesh", Journal of
Dairy Science, March , 47(3): 188-191.
5. Sharma, A.K . and Ram, K„ (1991) , "Seasonal Variation in Consumption Pattern of
Weaker Section of Households with Special Reference to Milk and Milk Products in
Sharanpur District”, Indian Journal of Dairy Science, 44 (8): 474 - 478.
6. Rajendran , K. and Prabhakaran , R„ (1993)," A Study on Production, Consumption
and Disposal of Milk in Dharampuri District in Tamiinadu", Indian Journal of Dairy
Science, 46 (10): 458-461.
 30

to be maximum among large farmers followed by small farmers, marginal farmers

and landless category.

Goswami7 (1994 ) examined the consumption pattern of milk and milk

products of five distinct income groups in Shillong town of Meghalaya state with a
sample of 200 households drawn from 20 wards. It was observed that with the
increase in income, the expenditure on milk and milk products had also increased.
Among the various milk items, per capita expenditure was maximum on fluid milk for
all the income groups. Linear, semi-log and log-linear forms of Engel function were
found to be best fit for explaining the consumer behaviour of various income groups
with respect to milk and milk products consumption. It was found that a wide variation
was discernible in the consumption pattern of milk and milk products across different
income groups. In general, income group above rupees 4000 turned out to be
dominant income groups in respect of average per unit expenditure on various milk
items, while income group below rupees 1000 reported least expenditure on these
items. The demand for various milk items was observed to be expenditure elastic for
all the income groups. All respondents adjudged butter and ghee and other milk
products as luxury items.

Singh and Singh8 (1994 ) in their study on the pattern of milk consumption in
urban and rural areas of Ludhiana district in Punjab, found that the direct
consumption of milk was more in rural than in urban areas. The percentage share of
domestic consumption was higher in summer season as compared to winter season
both in urban and rural areas.

Patel et al.9 (1994) based on the cross sectional data of 352 households
studied the occupation wise consumption pattern of milk and milk products in Kamal
city. The Engel equation of double log form was fitted for estimating the expenditure
elasticities. The concentration curve technique was used to study the inequalities in
the consumption of milk and milk products for different occupationa l groups.

7. Goswami, S.N. (1994), "Difference in the Consumption Pattern of Milk and Milk
Products Among Differen t Income Groups", Indian Journal of Dairy Science,
47 (11) : 62-64.
8. Singh, A.J and Singh, R.P., (1994), " Economic Aspects of Milk Consumption in
Urban and Rural Areas of Ludiana District in Punjab", Indian Dairyman
46 (7) : 403-410.
9. Patel, R.K, Kumar P. and Khera, J.K., (1994), "A Study on Consumption Pattern of
Milk and Milk Products", XIX International Dairy Congress, India, New Delhi, 852-853.
 31

They observed that the growth in demand for milk increased rapidly as per capita
income increased. The expenditure elasticities were higher for service families as
compared to the business families and there were greater inequalities in the milk
consumption for service families as opposed to business families.

Daisy Rani10 (1995) examined the consumption pattern for the selected
livestock products (milk, meat and eggs) among different income groups in Madras
city by selecting random sample of 300 households from 12 divisions of Madras city.
It was observed that the quantity of milk utilised per consumption unit per day
increased as income increased. The awareness of the consumers about various milk
products like standardised milk, toned milk and double toned milk, yoghurt and skim
milk powder increased as the income increased. The preference of the households
was more for toned milk in all income groups. Semi log functional analysis revealed
that family size, monthly income and educational level of the head of the households
significantly influenced the milk consumption. The vegetaridn habit also significantly
influenced the milk consumption levels.

Borah and Saikia11

* (1996 ) studied the consumer's preference to milk and milk

products in Greater Guwahati. The study revealed that the private sector served as
the biggest supplier of milk. A minimum percentage of consumers never purchased
milk for consumption. Preference for morning milk was higher than that for evening
milk.

At-home consumption pattern of milk and milk products had been studied
extensively also by Ganguli (1960); Iyengar, Jain and Srinivasan (1968); Sound and
Lai (1969) ; Jain and Tendulkar (1973) ; Inder Mohini (1981 ) and Saverland (1987),
both in urban and rural communities. These studies indicated that the pattern of milk
consumption was different for different income, educational and occupational groups.
Increase in income resulted in increase in the amount spent on milk. Per capita
expenditure on milk was higher in urban than in rural households.

10. Daisy Rani, M.S. (1995) , "Consumption Pattern , Consumer Awareness and
Preference of Selected Live Stock Products", Dissertation, Departmen t of Animal
Husbandry Economics, Tamilnadu Veterinary University, Chennai.
11. Borah , D.K. and Saikia, P.K., (1999) , "Consumer's Preference to Milk and Milk
Products in Greater Guwahati", Dairy Science Abstract, 61(10): 12.
 32

2.2 AWARENESS, PREFERENCE AND PERCEPTION OF FLUID MILK

Prabaharan and Patel12 (1980) conducted a study on consumer awareness

and preference for milk in Madras city with random sample of 300 households,
selected based on the probability proportion to the number of consumers in each
zone. The study aimed to analyse the awareness of the consumers relating to dairy
processing services; preference for cow and buffalo milk; preference for fat contents
among toned and standardised milk and also the preference for the size of package
of milk. The study revealed that majority of the respondents never heard about the
pasteurisation process and preference for cow milk was more than the buffalo milk.
It was due to the reason that cow milk was palatable with less fat content preventing
digestible disorders. More percentage of households was buying standardised milk .
About a percentage of households expressed their desire for toned milk with less fat
conten t than what was available. This type of preference was mainly expressed in
relatively lower income groups because of a feeling that reduction in fat percentage
would further result in a lower price for toned milk.

Ganguly and Gopai33 (1981) in their study on metropolitan milk markets of

India revealed that in Bombay and Calcutta 75 per cent of milk was bought by

households with low or moderate income but in Delhi and Madras almost half of all
milk was purchased by high - income households. In Delhi and Bombay the average
household devoted 17 per cent of its expenditure to milk products. It appeared that
milk and milk products were more important to the people of Delhi and Bombay, as
95 per cent of all the households interviewed in these cities bought milk regularly.
Of the households in four cities that purchased milk regularly 45 per cent bought
exclusively from Modem dairies under the City Milk Scheme. The Modem dairies
share in the liquid milk market had increased presumably because the modem
dairies charged 40 per cent less than the traditional sector for their milk.

Ackermann and Callier14 (1982) in their consumer survey of the milk market in

OAE revealed that Belgians are the lowest milk consumers in Europe except for the

12. Prabaharan , R and Patel, R.K., (1980) , "Consumer Awareness and Preference for
Milk in Madras city", Indian Journal of Marketing, December, 40 (4) : 13-16.
13. Ganguly, B.K. and Gopal, S., (1981), "Metropolitan Milk Market of India", World
Agricultural Economics and Rural Sociology Abstract, 23 (4): 304.
14. Ackermann , L. and Callier, K., (1982) , "Consumer Survey of the Milk Market", World
Agricultural Economics and Rural Sociology, Abstract, 24 (3): 137.
 33

West Germans . Milk being an important food item for most consumers, it was as well
as an important economic element in most Belgium farms. The study examined why
milk consumption per capita in Belgium was so low and likely to decline further.
Trends in demand and milk consumption by type of packaging (glass, plastic,
container, carton) and type of end products (sterilised, pasteurised, ultra-heat treated
(UHT)) were considered . A profile of typical Belgium consumer was developed which
showed variables in attitudes towards products according to various criteria
(age, religion, degree of urbanisation, occupation, social group, distribution channel).
The Belgium consumer was clearly inadequately informed about the product and
hence regarded its purchase as routine rather than involving a choice.
Many consumers thus probably bought a type of milk, which did not answer their
particular felt or unfelt needs. Marketing policy should thus seek to inform the
consumer so as to breakdown their presen t negative attitudes and increase their
interest while seeking to improve the product's brand image .

Drews15 (1983 ) in his study on the market for fresh milk and factors

determining the consumption trends in German Federal Republic revealed the shift
towards UHT milk from pasteurised milk having slackened off. Total consumption of
liquid milk remained stable. Factors determining the magnitude and composition of
liquid milk sales were examined and broadly grouped in estimated (descending)
order of importance in the following categories : flavour, price, health (including both
freshness and fitness) and convenience. It was pointed out that marketing activities
which had a positive effect on one factor might have a negative effect on another and
since the relative importance of the various factors for the consumer is not precisely
known, the success of marketing efforts could never be predicted with certainty.

Drews16 (1984 ) in his study on the market for pasteurised milk and factors

affecting consumption trends in German Federa l Republic revealed that of about

3.5 million tones of liquid milk produced by dairies in the , GFR in 1982
approximately
52 per cent was pasteurised. The increase in the market share of UHT milk at the
expense of pasteurised milk had become less marked in last few years, although the
major part (53.4 per cent) of milk sold in packaged form is now UHT milk. Factors

,
15. Drews, M. (1983) "The Market for Fresh Milk and Factors Determining Consumption
:
. Trends", World Agricultural Economics and Rural Sociology Abstract, 25 (2) 130.
16 Drews, M. (1984), "The Market for Pasteurised Milk and Factors Affecting
Consumption Trends, German Federal Republic", World Agricultural Economics and
Rural Sociology Abstract, (26) 7: 513.
 34

influencing the patterns of milk sales were flavour, price, health consideration and
convenience etc.

The objective of Raghbir Singh17 (1986) study on consumer ’s perception of

organised sector dairy products was to examine how consumers perceive dairy
products manufactured by organised secto r in comparison with those produced by
unorganised sector and examine whether there was any divergence, disagreement
among the opinion of households belonging to different income and educational
categories regarding their perception of dairy products manufactured by organised
sectors as against those produced by othe r sectors. The null hypothesis had been
tested. The majo r conclusion of the study was that as far as flavour, nutritional value ,
moisture content and digestibility were concerned consumers did not view much
difference between the unorganised and organised secto r d^iry products.

Termorshwizen et al.18 (1986) in their study entitled "Consume r Behaviour in

respect of Milk in the Netherlands used Engel, Kollat and Blackwell (EKB) Model - an
integrated model of consume r behaviour" established that liquid milk was perceived
as a neutral drink; not ordinary or luxury, as a food not a drink for pleasure and not as
being refreshing. The most important socio economic variables explaining individual
difference in consumer beliefs regarding milk are age, level of education and
residential area. The results suggested that empirical model of EKB type could
contribute to the understanding of consume r behavior with respect to generic food
products.

Burmann19 (1987) in his study on consume r attitudes and behaviours with

respect to liquid milk in the German Federal Republic revealed that households
consumed milk frequently, an equal percentage of the consumers were using
pasteurised milk and UHT milk and milk was used more for drinking than for
cooking. The dominant features in the image of pasteurised milk were freshness
and nice taste whereas the image of UHT milk was dominated by convenience and
was better among immigrant workers than among Germans.

17. Raghbir Singh, (1986), "Consumer Perception of the Organised Sectors Dairy
Products", Indian Dairyman, 38 (3): 89 - 95.
18. Termorshwizen, J.G. Meulenberg, M.T.G. and Wierenga B., (1986) , "Consumer
Behavio r in Respect of Milk in the Netherlands", European Review of Agricultural
Economics, 13 (1): 1-22 .
19. Burmann , W. (1987) , "Consumer Attitudes and Behaviours with regard to Liquid Milk
in the German Federal Republic", World Agricultural Economics and Rural Sociology
Abstract, 29 (1): 40.
 35

Singh20 (1989) studied consumer's perception of the organised sector dairy

products, by collecting data from 394 households in Chandigarh. Consumer

perceptions of milk products manufactured by organised sectors were compared with

that of milk products manufactured by unorganised sectors in India. The organised
sector comprised of industrial-scale manufacturers and products manufactured by
state corporations, co-operatives and joint stock companies. The unorganised sector
comprised of small-scale manufacturers and home made products. The milk products
from organised sector were perceived to be more" reliable in quality", "hygienically
prepared", "cleanly - packaged ", "delicious in taste" and "offering good value for
money" compared with milk products from unorganised sector. Perception of
moisture content, digestibility, nutritional value and flavour were rated similarly for
organised and unorganised sectors. Difference in income and education did not
influence perception.

Reynolds21 (1991) worked on modeling consumer choice of fluid milk.

The study had made an attempt to characterise consumer choice among standard
and fat reduced milk in Canada. To achieve this objective a more flexible
parameterisation to the Tobit model, the Double Hurdle was employed to model the
household demand for standard, low fat and skim milk. The analysis was carried out
with household data generated from the Family Food Expenditure Survey. Results
suggested that some of the included socio economic and demographic variables that
influenced the demand for standard milk were different from the demand for low fat or
skim milk. Moreover in conformity with these result, a logit choice model among
households choice of fat reduced milk and standard milk indicated that income, sex,
marital status, education, recipients of welfare assistance, urbanisation, household
age composition, price of fat reduced fluid milk and household provincial location
were found to have significant impact on household choice of fat reduced fluid milk
and hence consumer preference for a low-fat diet.

Brain W. Gould22 (1996) in his study on factors affecting U.S. demand for

reduced fat fluid milk, used household panel data set over 4300 households that

20. Singh, R. (1989), "Consumer Perception of the Organised Sector Dairy Products",
Indian Dairyman, 41 (2): 89-95.
21. Reynolds, A. (1991), "Modeling Consumer Choice of Fluid Milk", Working Paper
91/04, Department of Agricultural Economics and Business, University of Guelph,
Ontaria, Canada.
22. Brain W Gould. (1996), "Factors Affecting U.S Demand for Reduced-Fat Fluid Milk",
Journal of Agricultural and Resource Economics, July, 21 (1): 68-81.
 36

recorded fluid milk purchases for at-home consumption over a 12 month period.
Given that many of these households did not consume one or more of these types
viz. whole milk, skim milk and low fat milk, the econometric model explicitly
incorporated the censored nature of these commodity demands. With a public health
objective of reducing the fat intake of individuals, the result provided some hope for
continuation of shifting of consumption away from whole and towards reduced fat
varieties given that whole milk exhibits relatively high price elasticities; all milk types
were found to be substitutes; and there were significant difference in the effect of
demographic characteristics on milk demand. The three milk types analysed
revealed the existence of a cohert effect of age on whole milk demand. Only whole
milk demand was affected by the percentage of family members over 65 years of
age. Thus, whole milk demand could be expected to continue to diminish.

Jain and Sharma23 (1999) conducted a study on consumer opinion for

purchase of milk and milk products by collecting data from 300 sample households in
Chandigarh city, 150 in a town of Rohtak district and 100 in two villages of Rohtak
district (Northern India) and similar data from city, town and village households in
Bangalore and Mandya district (Southern India). Sources of purchase for milk and
milk products, consumers preference for different sources, factors influencing
purchase choice and reason for not consuming milk of the organised sector and its
preference by consumer in the southern region than in the northern one, especially in
urban area were examined. However, the majority of consumers bought milk and
milk products from unorganised sectors. In rural areas consumers depended upon
home made products and a small number of consumers bought from the
unorganised sector. Role of the organised sector was not significant in rural areas in
both regions. Price was an important factor influencing purchases in the southern
region but was less important in the northern one however, consumers in both
regions did not purchase expensive products.

Suriya Murthi24 (2001) in his article on milk marketing strategies had listed

some basic components of marketing strategies such as adherence to regulatory

standards of quality; supply of hygienic and unadulterated milk. It was suggested that

23. Jain, D.K, and Sharma, A.K., (1999), "Consumer Opinion for Purchases of Milk and
Milk Products", Dairy Science Abstract, 61 (10): 13 -18.
24. Suriya Murthi S. (2001),"Milk Marketing Strategies", Indian Journal of Marketing,
May-June, 31(5-6): 24-25.
 37

co-operatives to form business alliance with other co-operatives and private

companies so as to leverage operational synergy and fair and equitable competition
among dairy industry to create competitive advantage.

Prabhakar Sharma and Joglekar25 (2002 ) in their study on "Marketing of

milk-an opinion survey of consume r perception in Rajamundry, A.P" included a
cross section of consumers covering the area of the Godavari Co-operative Dairy
with the sample size of 400 households. The study found that the majority of the
families were purchasing milk from private vendors. The location of milk booths was
either close to residence or located within a reasonable distance. The supply of milk
through polyethylene sachets by home delivery was advantageous. The families
expressed that the milk supplied by the GCD's is of medium quality. The quality of
the milk was primarily judged on the basis of level of fat content in milk. Families
belonging to lower income groups strongly expressed their preference to private
vendors due to non-availability of milk in small packing less than half a litre.

Paramashivaiah and Arvind Kulkami26 (2003) studied consume r attitude

towards pasteurised milk among the people residing at the rural areas of Gulbarga
district based on primary data collected with structured questionnaire from a sample
size of 120 respondents selected at random consisting of 60 each from Mudho l and
Malkhed village respectively. To study the attitude of buyers of pasteurised milk in
rural areas and to evaluate the preference of rural consumers for pasteurised milk on
the basis of their age, sex, education and income were the main objectives.
The findings emerged out of the study revealed that the majority of the respondents
used pasteurised milk. The quality of milk was the majo r factor considered in
selecting a particular brand followed by taste and brand name of that pasteurised
milk. Rest of the respondents used unpasteurised milk due to non-availability and
high price of pasteurised milk. Demand for pasteurised milk in small packs less than
500ml was more. Younger and middle age group preferred pasteurised milk than the
age group above 55 years. Education of the respondents had greater influence in
preferring pasteurised milk than the illiterates who never used pasteurised milk.

25. Prabhakar Sharma and Joglekar P.V.N., (2002). "Marketing of Milk an Opinion
Survey of Consumer Perception , Raja Mundry .A.P", Indian Journal of Marketing,
March - April, 32 (3-4): 10-13.
26 . Paramashivaiah, P. and Aravind Ku l Kami, (2003) , "Consumer Attitudes towards
Pasteurised Milk : A Case Study", Southern Economist, 42 (19) : 21-23.
 38

It was suggested that the suppliers of pasteurised milk should introduce small
packs (say 250 ml) in rural areas and lower the price of their best quality milk i.e. Full
cream milk, to make it more affordable for the poor rural consumers because
non-users of pasteurised milk identified price as a big hindrance in their purchases.

Most of these studies had focused mainly on the consumer awareness of milk
types and its fat contents, preference and perception about milk. The studies
reviewed also indicated the reasons for buying particular milk type as income,
freshness and palatable ness. It was also identified that milk purchase was routine
rather than involving a choice.

The studies on milk purchase behaviour by Jonas (1971) and Anthony

Prato (1971) emphasised income, awareness of milk types by Vaughan (1985), milk
type preference by Retnam and Spielman (1972) and Campbell (1990) and
perception by Bachelin (1981 ) and Mannheimer (1998) were noteworthy. Further it
also indicates the prominent existence of unorganised sector milk market .

2.3 BRAND PREFERENCE FOR FLUID MILK

Shanthi27 (1987 ) studied consumer preference for "Aavin" milk and its

products in Royapettah and Mylapore. It was found that good quality coupled with
low price was the main reason for consumer preference for milk and milk products.
Correct weight and convenience found the second and third place with hygiene
coming last. The quantity of milk purchase increased with the increase in the size of
the family. It was also found that consumption of Aavin milk did not increase with
increase in income.

Sridharan28 (1991) conducted a study on consumer preference for "Aavin"

milk and milk products. The specific objectives of the study were to identify the steps
to improve the quality of milk and milk products and to find out the reason for
customer dissatisfaction towards "Aavin" milk and milk products. It was suggested
that the outgoing milk and milk products must be checked and it should be confirmed

27. Shanthi, S. (1987), "A Study on Consumer Preference for Aavin Milk and Milk
Products", Project Report, PG Diploma in Business Management , Lajpat Raj Institute
of Management , Madras.
28. Sridharan, K.N . (1991)," A Study on Consumer Preference for Aavin Milk and Milk
Products", Project Report, PG Diploma in Marketing Management , University of
Madras, Madras.
 39

to Prevention of Food Adulteration Act. In order to avoid adulteration of milk, the

farmers were to be paid not on the quantity of milk but on the quality (fat content) of
milk. To identify dissatisfaction, category wise complaints received were noted such
as adulteration, denial of supply, delay, improper behaviour, higher price and
spoilage.

Nagaphani29 (1998) conducted a study on the marketing aspects with special

reference to Coimbatore District Co-operative Milk Producers' Union Limited.
The study revealed that the reason for low procurement in the areas of
Shanmugapuram and Sultanpet chilling centers was due to the competition in
procurement from private dairies. The sale of milk in 500ml sachet was found to be
high. Revenue from sale of liquid milk was more than the sale of milk
products.
)
Thiagarajan30 (1999 in his study on marketing of Aavin milk in Madurai

revealed that "Aavin" was playing a monopoly role by capturing a lion's share
90 per cent of the market by maintaining a standard quality and a comparatively low
.
price However, in recent time Aavin's market share had come down from 90 per cent
.
to 66 per cent due to multiplicity of causes both internal and external Internal causes
from consumers point of view were limited quantities for a limited time in a day, dual
pricing for regular users and for special orders, low sales commission for depot
concessionaries, cumbersome procedure involved in the distribution and refund of
money for milk not purchased. External causes were introduction of competitors in
the market like “Seva” and “Arokya” and natural factors leading to a short supply
of milk. Hence this co-operative, which was once a monopoly institution had to
rethink its strategies and launch itself on a full, fledged marketing campaign.

Naveen Venkata Prasanna31 (2003) carried out a study on customer

satisfaction rate towards Aavin milk in Coimbatore. The non-probability convenience
sampling was adopted to draw a sample of 150 respondents. The study focused on
ascertaining consumer preference in purchase of Aavin brand of milk and analysing

29. Nagaphani, L. (1998),"A Study on the Marketing Aspects with Special Reference to
Coimbatore District Co-operative Milk Producers' Union Limited", Project Report,
Madurai Kamaraj University.
30. Thiagarajan, S. (1999), " Marketing of AAVIN Milk in Madurai", Indian Journal of
Agricultural Marketing, 13 (2): 37.
31. Naveen Venkata Prasanna, S. (2003) "A Study on Customer , Satisfaction Rate
Towards Aavin Milk in Coimbatore", Project , Report Master of Business
Administration, GRD Institute of Management Coimbatore.
 40

the perceived differences of various brands of milk on key attributes and also on
identifying measures for improving customer satisfaction. Purity, taste, thickness,
availability, price, service of agents and place of purchase were the criteria used in
the study. It was found that Aavin brand was rated high for purity, taste and
thickness. Attributes like availability, price, and service of agents were also rated
good. Other milk brands like Arokya and Amritha rated best for its purity and taste
respectively. For all the brands price and service of the agents were rated least.

Riyaz Mohammed32 (2003) conducted a study on comparison of Aavin,

Arokya and Sakthi milk with special reference to Coimbatore city with a sample size
of 150 respondents drawn on convenience sampling method. The study aimed to
understand the consume r preference of branded milk; expectation of consumers
regarding the features of the branded milk; effective media for branded milk and
impact of packing of the branded milk The findings of the study revealed that the
Aavin brand of milk preferred for its purity, quality and price but the advertisement
campaign, home delivery, non availability in retail outlets were the points of
dissatisfaction when compared to the milk brands Arokya and Sakthi. Even though
these brands claimed that package of milk in polyethylene packs were safe, it was
still found to be unhealthy.

These reported studies highlighted the dissatisfactions associated with

co-operative's brand from the point of view of consumers so as to suggest the
manufacturers to improve their services in those identified areas.

In the light of the studies reviewed above, the importance and need for in-depth
and comprehensive research on consumer behaviour with respect to fluid milk
purchase in the context of organised and unorganised sector milk market, becomes
highly significant and beneficial.

32. Riyaz Mohammed, (2003 ) "A Study on Comparison of Aavin, Arokya and Sakthi Milk
with Special Reference to Coimbatore City", Project Report, Bachelor of Business
Management , GRD Institute of Management, Coimbatore.