CHAPTER – I

INTRODUCTION AND RESEARCH DESIGN

INTRODUCTION:

Today’s customers are harder to please. They are more smarts, more prices conscious,

and more demanding, less forgiving and approached by more competitors with equal or better

offers. The challenge for every producer of consumer goods is not to produce satisfied

customers but to produce loyal customers.

Satisfaction is a person’s feeling of pleasure or disappointment resulting from

comparing a product’s perceived performance in relation to his or her expectations. Many

companies are aiming for high satisfaction because consumers who are just satisfied still find

it easy to switch when a better offer comes along. Those who are highly satisfied are much

less ready to switch. High satisfaction creates on emotional bond with the brand not just an

emotional preference. The result is high customer loyalty.

Some of today’s most successful companies are raising expectations and delivering

performance to match to provide total customer satisfaction. Loyal customer account for a

submitted amount of company profits and the company cannot afford to loss them at any cost.

In the inverted pyramid model marketers will follow the dictates of buyers. Therefore

marketing managers should understand the change of customer tastes from time to time. It is

the customer who determines the various product features, which will benefit him.

In today’s world of rapidly changing technology, consumer tastes are also

characterized by fast changes. To survive in the market, a firm has to be constantly innovating

and understand the latest consumer trends and tastes. Consumer behavior provides invaluable

clues and guidelines to marketers on new technological frontiers, which they should explore.

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Customer behavior is a process, and purchase forms one part of this process. There are

various endogenous psychological and exogenous environmental factors which influence this

process. All these factors and the type of influence which they exert on an individual’s

consumption behavior can be understood and analyzed. Moreover, some of these factors can

be further influence by specific elements of the marketing strategy, so that the consumer

behavior process result in a definite purchase decision.

To the extent that the marketer can understand and manipulate the influencing

factors, they can predict the behavior of consumers. Though prediction can never be

absolutely accurate, it certainly reduces the risk associated with different marketing strategies.

Thus, the importance of consumer behavior lies in the fact that behavior can be understood

and influenced to ensure a positive purchase decision. The marketing manager’s interest lies

exactly here i.e. to ensure that his marketing strategy results in purchase of the product.

BUYER BEHAVIOUR:

The wealth of products and services produced in a country make our economy strong.

Almost all the products, which are available to consumers, have a number of alternative

supplies i.e. substitute products are available to consumers, who make a decision to buy

products. Therefore, a seller, most of his time, seeks buyers and tries to please them.

A consumer makes a purchase of a particular product or a particular brand and this can

be termed “product buying motives”. And the reason behind the purchase from a particular

seller is “patronage motives”.

More or less, after the Second World War, the seller markets have disappeared and buyers

markets have come up. It means that the manufacturer’s has switched over from the products

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to the consumers and specially concentrated on the consumer behavior. The manufacturer

possesses no control over the behavior of consumers.

A modern marketer first, tries to understand the consumers and their response, and

then he studies the basic characteristics of their Behaviour. It can be said that consumer is the

pivot, around which the whole marketing system revolves. The selection or choice of products

or services by consumers greatly determines the fate of the producters. As such, the marketer

must know the consumers, more and more, in order to manufacture the products, which give

them satisfaction, in the way, the customer need.

The marketing programmes and policies depend upon the consumer behaviours, one

will naturally invite failure. A careful study of consumer behaviour will facilitate the marketer

in determining the size, for, style colour, package, brand etc.,

“The process whereby individuals decide whether, what, when ,how and from whom

to purchase goods and services can be terned as the customer’s or the buyer’s

behaviour”.

The buyer may take a decision whether to save or spend the money. When he decides

to spend, then there are many problems as to what to purchase, because needs are numerous,

which leads to ranking the needs in terms of priority. Then, the problem are consumption

problems – were to buy, hoe to buy, from whom to buy etc.,

BUYING MOTIVES:

Motives refer to thought, urge, strong feelings, emotions, drive etc. They make a buyer

to react in the form of a decision. Motivation explains the behaviour of a buyer. Motives

induce a consumer to purchase a particular product. The motives may be generally controlled

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by economic, social, psychological influences etc. When a consumer buys a product, his aims

are desire for security, rest, comfort, curiosity, self – preservation, fashion etc.

People purchase products urgedby mental and economic forces, which create a desire;

and this desire is satisfied by the articles displayed for sale. A motive is an inner urge that

prompts on to action; it is not a mere desire. The stimulated desire is called a motive.

Knowledge of the buying motives of consumers is essential for a marketer. The changes in the

market are brought by the consumers. The needs and desire of the consumers and their buying

behaviour greatly depend upon their income, social status, psychology etc. The consumer and

customer are two different terms. Customer is not always the consumer and consumer is not

always the customer.

Customers, like middlemen, agent etc. may or may not purchase products for their

own use, where as consumers get the products for their own consumption. “Buyer behaviour

is all psychological, social and physical behaviour of potential consumers, as they evaluate,

purchase, consume, and tell others about the product and services.

The study of consumer behaviour is the study of how individuals make decisions to

spend thrie available resources (time, money, effort) on consumption – related items. It

includes the study of what they buy, why they buy it, where they buy it, how often they buy it,

and how often they use it.

The study focuses on how and why consumers make decisions to buy goods and

services. The study of consumer behaviour enables marketers to understand and predict

consumer behaviour in the marketplace; it also promotes understanding of the role that

consumption plays in the lives of individuals.

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NEED FOR THE STUDY:

Consumer is the central point and all the marketing activities revolve around him.

Manufacturer produces what the customer wants. As the customer’s behaviour differs from

person the producer must understand it. Customer purchase an article, as consequences of

certain motives and the articles offeres for purchase should satisfy economic forces creating

desires or wants which he understands.

Thus producer should identify the motives which prompt them to purchase so that he

can offer a complete article satisfying their needs. Thus, it is buying motive that prompts the

purchaser to purchase. Such buying motives may be fear desire ride, fashion, possession, sex

or romance, affection or comfort.

Consumer behaves in a particular manner as directed by his inner motive. The

marketer is to study and analyze the consumers’ behaviour in order to sell and improve the

product. In the competitive business world, many brands of tea are produced and marketed by

a manufactures. The decision whether to buy or not depends based consumers motives.

Modern market is a consumer oriented and now consumers are the decisive force. The

reasons have inspired the researcher to make out a study about the consumers behavior and

their preference to particular tea brand. The problem undertaken for the study is consumer

preference and behavior towards using tea. For this purpose, consumers’ preferences over tea

brand are analyzed.

On what basis the consumers prefers his brands and which influences him to buy such

a brand and how his buying motive is created, are analyzed to predict the exact buying

behaviour of the consumers towards using tea brand. The area chosen for the study is

Nagapattinam town.

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 This particular area is chosen because many of the low class, middle and upper class

families live here. Tea is one of the necessary products used by all people. The researcher is

interested is interested to know the brand, which is widely used by the consumers is the study

area. Therefore, this area was chosen for the study.

OBJECTIVES OF THE STUDY:

Primary Objectives:

To find out consumers’ preference to tea brands in the study area.

Secondary Objectives:

To understand the conceptual framework of the consumer behaviour.

To identify the factors responsible for the preference of a particular brand of tea.

To study the extent to which consumers preference varies with reference to income,

age, sex and other factors.

To know the opinion of the consumers about the price of the tea brand.

To offer suitable suggestions to improve the tea market and consumers interest.

RESEARCH METHODOLOGY:

Research Design:

The design of the research is explorative in nature as it tries to identify the preference

of the consumers to tea brand in Nagapattinam town. Both primary secondary data have been

used in this study.

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Source of Data:

Primary data, the opinion of the consumers of tea brand in Nagapattinam town have

been collected directly from a group of sample consumers using a structural interview

schedule prepared specially for that purpose. Secondary data have been collected from related

books and magazines, from relevant published and unpublished reports.

Presentation of Data:

The Data thus collected from the opinion of the consumers were tabulated, analyzed

and interpreted with the help of tables, diagrams and charts, Bar diagrams and pie diagrams

were used to simplify the data.

Population of the study:

All the consumers who consume tea in the study area are the population of the study.

The total Population of the study is infinite and cannot be quantified.

Sample size:

The total number of respondents for this research was 150.

Sampling Method:

Convenience sampling method of non – probability sampling is used in this research.

The sample units are chosen primarily on the basis of the convenience to the investigation.

Statistical Tools used:

The data, thus collected have been properly classified tabulated and interpreted, to

have a clear- cut outlook. The statistical tools like percentage, diagrams, graphs, chi- square

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test and ANOVA are employed to analyze the data and testing of hypotheses in an effective

manner.

Hypothesis Used:

There is no significant difference in the source of information that influenced the male

and female buyers of tea product.

There is no significant difference between opinion of the respondents about sales

promotion media and the age of the respondents.

There is no significant difference between the opinions of the respondents about the

price of the tea product and different income levels of the respondents.

There is no significant difference between opinion of the respondents about brand

loyalty and educational qualifications of the respondents.

LIMITATIONS OF THE STUDY:

The study is confined to Nagapattinam town limit only. Therefore, the findings of the

study are not universally applicable.

The study is restricted to the opinion of the consumers only. Opinion of the dealers

and tea stalls buyers are not taken into account.

The results of the study cannot be generalized to other areas due to demographical

differences.

The study was taken in general point of view of the consumers preference to different

tea brands and not a specific company.

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 The sample size is 150 only, which may not be sufficient to conclude the accurate

response.

The report is purely based on respondents’ data. There may be biased information.

CHAPTER SCHEME:

The whole study has been organized and presented in five chapters.

Introduction and framework of the study is given in the first chapter.

A brief sketch of production , consumption and marketing of tea is dealt with in

second chapter.

Third Chapter is devoted to consumer behaviour and related literature.

Fourth chapter is concerned with analysis of consumers’ preference to tea brand in the

study area.

Summary of finding, suggestion and conclusion of the study is presented in the

concluding fifth chapter.

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 CHAPTER-II

PRODUCTION,CONSUMPTION AND MARKETING OF TEA- AN OVER VIEW

INTRODUCTION:

Tea is grown in about 30 countries but is consumed worldwide, although at greatly

varying levels. It is the most widely consumed beverage with a per capita worldwide

consumption of approximately 0.12 liter per year. Tea is manufactured in three basic forms.

Green tea is prepared in such a way as to preclude the oxidation of green leaf polyphenols.

During black tea production oxidation is promoted so that most of these substances are

oxidized. Oolong tea is a partially oxidized product. Of the approximately 2.5 million metric

tons of dried tea manufactured, only 20 per cent is green tea and less than 2 percent is Oolong

tea.

Green tea is consumed primarily in china, Japan and a few countries in North Africa

and the Middle East. Fresh tealeaf is unusually rich in flavanol group of polyphenols known

as catechin which may constitute up to 30 percent of the dry leaf weight. Other polyphenols

include flavanols and their glycosides, and depsides such as chlorogenic acid, coumarylquinic

acid, and one unique to tea, theogallin (3-galloylquinic acid). Caffeine is present at an average

level of 3% along with very small amounts of the other common methylxanthines,

theobromine and theophylline. The amino acid theanine (5-N-ethylglutamine) is also unique

to tea. Tea accumulates aluminum and manganese. In addition to the normal complement of

plant cell enzymes, tealeaf contains an active polyphenol oxidase which catalyzes the

catechins when the leaf cell structure is disrupted during tea manufacture.

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 The various quinines produced by the enzymatic oxidations undergo condensation

reactions which result in a series of compounds, including bisflavanols, theaflavins,

epitheaflavic acids, and thearubnigens, which impart the characteristic tasts and color

properties of black tea. Thearubigens readily form complexes with caffeine. There is no tannic

acid in tea.

Thearubigens constitute the largest mass of the extractable matter in black tea but their

composition is not well known. Proanthocyanidins make up part of the complex. Tea

peroxides may be involved in their generation. The catechin quinines also inititate the

information of many of the hundreds of volatile compounds found in the black tea aroma

fraction. Green tea composition is very similar to that of the fresh leaf expect for a few

enzymatically catalyzed changes which occur extremely rapidly following plucking. New

volatile substances are produced during the drying stage. Oolong tea is intermediate in

composition between green and black teas.

VARIETIES OF TEA:

The variations vary according to the soil, climates and differences in processing.

Nearly all tea is grown in the East but there are some tea plantation in Russia, Kenya, and

Argentina, South Africa and even Hawaii and Charleston, South Carolina. All tea has some

Caffeine, the darker the tea, the more caffeine, however rooibos and herbals are caffeine free.

USING TEA FOR MEDICINAL PURPOSE:

Chamomile tea helps one relax and sleep.

Mint tea eases digestion, especially spearmint tea.

Ginger tea is good for queasy stomach.

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 Ginseng tea is good for an energy boost.

TYPES OF TEA:

Block Teas are fermented, left in a cool, dark and damp place for a time then heated to

stop the process.

Oolong Teas are semi-fermented

Green Teas are heated after picking so there is no fermenting process.

White Teas are picked only two days in a year and are not processed but dried and

withered in the sun. It is very light in color, mild in flavor and contains minimal caffeine.

Rooibos is an herbal with needle-like leaves that come from the Red Bush which is

grown in south Africa.

Herbal or Tisanes are not actually teas, but are concoctions of peels, flowers, leaves,

herbs and spices.

THE HEALTH BENEFIT OF TEA:

A study published indicated that tea wards off coronary artery disease, especially in

women. Dutch researchers found that those who drank one or two cups of tea daily lowered

their risk of severe aortic arteriosclerosis-a narrowing of the arteries caused by buildup of flat

and other substances on the inner walls – by 46 percent. At four cups a day the risk dropped

by 69 percent. Tea’s protective effect may come from flavanoids, which act as antioxidants,

said the researchers, from Erasumus University Medical School in Rotterdam. The study

appears in Archives of Internal Medicine.

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 New Research shows that the answer depends on the way tea is decaffeinated. If

caffeine is removed with a compound called ethyl acetate, only about 30 percent of the tea’s

headling polyphenols (believed to fight cancer and heart disease) remain. But if caffeine is

removed using a more expensive water- and carbon-dioxide process, sometimes called

effervescence, about 90 percent of the polyphenols remains,

Additional research is now going on about cancer fighting properties in green tea. The

have found that green tea may prevent cancer cells from enlarging or dividing. Right now

what they have found is that blood levels of polyphenols must be maintained at a constant

level which would require one to drink a cup of green tea every hour. On the horizon may be

a time- released green tea capsule.

TEA INDUTRY IN INDIA:

Tea industry is an important agro-based industry in india and is about 160 years old. It

is labour intensive industry. It is already carrying a total of 2 million workers on its pay roll

together with their families and at least 10 million people are directly depending on the

industry for their masses. 50% of are women. Women are mainly engaged in on plucking the

levels. An area of land under tea provides 240-man day’s employment, while other industry in

this field provides 38-40 man-days. This industry supports the plywood, fertilizer, transport

industries.

TEA INDUSTRY IN SOUTH INDIA:

India produces around 25 percent world’s production (2.589 million Kg in 1993)

through its 1269 tea industries situated in North and South India. South india from its 208 tea

factories produced annually 178 million Kg of tea in 1993 and occupies an important place in

the world tea map.

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TEA INDUSTRY IN TAMIL NADU:

Tamil Nadu tea industries are concerntrated in the hill areas of the state. Such as

Nilgiris, Madurai, Tirunelveli and Kanyakumari. It cover 75,000 hectare or 1.25 percent of

the cultivated land in this state and employs crores lakhs people. The total investment of the

industry inrupee is more tha 120 crores and annual produce is valued at more than Rupees 48

crores. Tamil Nadu is the third largest tea producing state in India.

THE FUURE PROSPECTS OF TEA INDUSTRY:

The future prospects of tea industry depend upon the increasing are under cultivation,

replanting of old bushes. Large investment is made into tea industry to retain and improve

India’s image as a supplier of tea to world markets.

PRODUCTION IN INDIA:

India is the world’s largest producer of tea (Mostly Black Tea). More than 60 percent

of tea exported from India was shopped to the United Kingdom. Tea is growing in many

regions of India. South East Asia is considered the original home for tea. But tea plantations

are concentrated in the Assam Valley and Cochar, Darjeeling and Tera in west Bengal. In

North India Assam is the mother state of tea in India.

The major tea area of the country is concentrated on Assam. West Bengal, Tamil Nadu

and Kerala. The other areas where tea is grown to a small extent are Tripura, Himachal

Pradesh, Manipur, Nagaland, Orissa and sikkam also have taken up tea growing.

The per hectare yiels rate as well as the quality of tea vary from region to region and even

garden in the region due to the climatic factors and agricultural practices. Good garden

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management is also management is also an important contributory factor to an increased yield

rate.

MARKETING OF TEA:

The demand for tea in the internal market is more than export market. There is a great

potential in the marketing of tea in the Indian marketing. At present, the tea market is flooded

by numerous brands of packaged tea. Among the branded tea, Brooke Bond Lipton, Tata tea

stand head and shoulders above the rest with a total share of more than two-third of the total

tea market

. The Brooke Bond is a leading packaged tea marketer in india. The company sales

head office is located at Calcutta. Further, it has more number of regional and branch offices

throughout India. The company have five factories for blending and packing, their tea at

Calcutta, Nagpur, Jamnagar, Hyderabad, Ghatkesar, Coimbatore and Agra. The company’s

share of the total sales of tea in india was about 65%. They also export tea the U.A.E.,U.K.etc.

They cover 20 percent (approximately) of export.

The Brooke Bond and Lipton tea companies market their products decades. These

companies dealt their product in various brand names, viz., Three Roses, Top Star, Taj Mahal

etc., Tata tea, the second largest plantation in India, has made an investment of Rs.25 crores at

Munar to set up 3 million lbs per annum capacity instant tea plant. In the seventies Tata

identified tea as a major growth area with aggressive production and marketing.

Tata tea has been successfully increasing its market share; Today estimated at around

20 percent consequently the dominance of Hindustan Lever has been being eroded, its market

share falling from around 75 percent to around 40 percent over the last 15 years.

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 Tata tea has evolved in this period a the largest integrated tea company in the world,

owing 55 tea estates, in Assam, Kerala, Tamil Nadu and West Bengal. The operation of tea

covers all areas from the tea employs around 6000 employees and has a turnover of around

Rs.900 crores.

The Tata Tea company with the strong brand preferencein differenent geographical

location e.g., Kannan Devan highly popular in Kerala and Tamil Nadu emerging as country’s

leading brand in south India.

It is fresh plantation packaged tea sourced from Tata estates in South India. Gemeni

dust is extremely popular in Andrash Pradesh and Tamil Nadu has a strong share of the rural

market of south India. Chakra Gold, a premium brand, which emerged among the fastest

growing brands of packaged tea. Recently Tata tea launched the Agni Brand. Tata tea has

been successfully taking on the Hindlever with strong established brands like Taj Mahal, 3

Roses, A-1, Top star and other brand.

The brand building exercise obviously intended to take on the different brands one- to-

one. Some other bid and small tea companies in India have also started re organizing their

market.

They are going for retail marketing in the domestic market, while the demand for losse

or bulk tea is growing at the rate of 3 percent, the demand for packet or branded tea is

growing at the rate of about 6 to 8 percent per annum.

In India tea market particularly with regarding to Tamil Nadu, new and established

companies are introducing a number of new brands of tea every year. The companies are

marketing their product with some product differentiation in product meet the need variations

of consumers and to capture a substantial share of market.

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The retailers of this area get tea product in any of three ways namely first directly from the

whole sale agencies, secondly from the sub dealers who purchase product from the whole

agencies, the retailers in turn sell tea product to household consumers and institutional buyers

namely tea stalls. The retailers include grocery shops, general merchants and petty shops.

They sell the tea product with small amount of margin in each package to the consumers of

the area.

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 CHAPTER-III

CONSUMER BEHAVIOUR-A CONCEPTUAL FRAME WORK

1.INTRODUCTION:

It is well established that in all marketing decision-making, consumer needs

should serve as the focal point. As such, it is both relevant and important for any business to

know its consumers and understand his/her buying behavior. It is also important to understand

how buying decisions are taken.

2.CONSUMER BEHAVIOUR MEANING AND IMPORTANCE:

When a person gets his pay packet at the beginning of each month he sits down

with his wife and prepares the family budget after carefully apportioning amounts to different

items of expenditure.

However, after a trip to the market with his family, he finds that the whole ‘exercise

in rationality’ (budget) is futile as the purchases made by him are not compatible with the

budget items. On recapitulation and analysis, he finds that it was his wife, son, daughter and

even he himself who were responsible for this deviation. The deviation is attributed to the

arousal of new needs on account of new products displayed, better packages, better credit

facilities, charming saleswomen/men ship and also because a rich neighbor is using some

particular article.

While making purchases, the son a has friend’s dress in his mind, the daughter has her

class teachers’ new lipstick in her mind, the wife is thinking of a particular sari shed had seen

at a party, and he himself was overawed by his neighbor’s choices. This whole behavior of a

person(s) while making purchases may be termed as consumer behaviour. It has been defined

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as “the process where by individuals decide whether, what, when where, how and from whom

to purchase goods and services.

In this process, the consumer deliberates with in himself before he finally

makes a purchase move. This deliberation relates to many variables and is aimed at solving

consumption problems. Among these problems, the first and foremost is to decide whether to

spend money or to save it.

Once a decision is taken to spend money, the second problems is to decide what t buy

because the needs are multiple and resources scarce. Therefore, needs are to be ranked in

terms of priority. The subsequent consumption problems relate to the place from where to

buy, the mode of purchase large/small quantites, cash/credit purchase and the like- and, last,

the seller/shop from whom to buy. This whole consumption behaviour consists of both

physical and mental activities.

The physical activities involve visiting a shop, examining a product, selecting products

or eating/ drinking outside, that is, the actual act of consumption. Mental activites, on the

other hand, involve deliberations with in and forming of attitudes, perceiving communication

material and learning to prefer a particular brand of product.

3.CONSUMER BEHAVIOUR AND CONSUMPTION:

Consumer behaviour relates to an individual person (micro behaviour), whereas

consumption behaviour relates to the mass or aggregate of individual (macro behaviour). “The

study of consumer or consuming unit, such as family.

It includes all the efforts to describe and explain one or more acts of choice either at a

given time or over a period of time. In contrast the study of consumption behaviour is

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concerned with the description and explanation of the behaviour of aggregates of consumers

or consuming units, again at a given time or over a period of time.

The subject matter of consumption behavior parallels at the aggregate level to

that of consumer behavior and buyer behavior and includes activities of both ultimate and

industrial consumers.

The former is the end-user of the product/service before it is consumed by the end-

user. When behaviour of both the kinds of buyers is under reference, the term used to denote

it is ‘buyer behaviour’,when the behavior of only end users under reference, the term’

consumer behavior’ is used to denote it.

4.MEANING OF BUYING MOTIVE:

According to W.J.Stanton, ”A motive can be defined as a drive or an urge for which

an individual seeks satisfaction. It becomes a buying motive when the individual seeks

satisfaction through the purchase of something”.

Motive is thus an inner urge that moves or prompts a person to some action. Motive is

an effectual desire that prompts one to a defined action. Customers purchase any goods of

certain mental and economic forces that create desires or the articles offered for purchase can

satisfy wants that they know. In the words of Burleson and Steiner, “A motive is the inner

state that energizes, activates or moves and that directs or channels behavior toward goals.

5. FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR:

Marketing success or failure depends mainly on target customer’s individual and

group reaction expressed in the form of buying patterns. There are three main approaches to

the explanation of buyer behaviour (i) the economic (ii) the psychological and (iii) the

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structural. Buying behaviour may be viewed as an orderly process whereby the individual

interacts with his or her environment for the purpose of making market place decisions on

product and services.

The individual specific behaviour in the market place is affected by internal factors

such as needs, motives, perception and attitudes as well as y external or environmental

influences. Such as the family, social groups, cultural, economic and business influences.

Buyer’s Behaviour – Insight for Economics:

Economic theory describes man as a rational buyer who has perfect information about

the market and uses it to obtain maximum value for the buying effort and money. Price is the

strongest motivation. He compares all competing sellers’ offerings; he buys the one with the

lowest price.

Numerous economic factors influence consumers in the ways they spend their incomes

for personal consumption. Purchasing power of the consumer is used to control production

into consumption people who do not spend all of their income. Disposable personal income is

used both for personal consumption and for saving.

If disposable personal income should rise, businessman would be interest in learning

what proportion of the additional income the consumers might spend and what proportion

they might save. Marketing analysis is more interest in examining the effect of changes in

income on spending and saving.

In inflationary periods spending rises faster of changes in income on spending and

saving. In inflationary periods spending rises faster than income. The concepts of marginal

propensity to consume and the same to take into account the rates of change and that is why

analysis considers them valuable.

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 In the same way the size of family income is also important as they affect spending

and saving patterns. The incomes that consumers expect to receive in future have

somebearing on their present spending patterns.

In particular spending for automobiles, furniture, major applicances and other

expensive items tend to be influenced by consumer’s optimism or pessimism about future

income. In the same way consumers’ liquid assets also affect buying plans.

Cash and other assets readily convertible into cash such as balance in saving accounts,

shares, etc., influence our purchases. Retired and unemployed individuals may be liquid assets

to buy every day necessities. Other consumers may use liquid assets to meet major medical

bills and other emergencies.

Consumer Credit:

Availability of consumer credit strongly influences the pattern of consumer spending.

Credit, which allows one to buy now and pay later, enables a consumer to command more

purchasing power than by his current income.

Even small fluctuations in income cause sharp repercussions in consumer purchases.

The quick response of durable goods expenditure to income changes traces to the wide use of

installment credit in financing such purchase.

Consumers are more willing to increase installment credit in financing such purchases.

Consumers are more willing to increase installment debt when income is rising and are more

reluctant to incur additional indebtedness when income is declining.

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Buyer’s Behavior – Insights from Psychology:

Studies of learning and the related areas of recongnition recall and habitual response

have furnished marketers with several keys to understanding consumer behaviour.

They help in answering question like how do consumer learn about products offered

for sale? By what process do they develop buying and consuming habits? Buyer is influenced

not only by external stimuli but also by internal factors.

The Basic Factors Influencing Learning:

These are repetition, motivation, conditioning and relationship and organization.

Repetition:

Repetition is necessary for the progressive modification of psychological influences

and must be accompanied by attention, interest and a goal if it is to be effective. Advertisers

who depend on repetition alone both their efforts and money.

Motivation:

The individual motivation is the most important factor involved in indicating and

governing his or her activities. Activity in harmony with one’s motives both satisfying and

pleasing. Human motivation is a topic of considerable interest for marketing professionals.

Conditioning:

Conditioning is a way of learning in which a new response to a particular stimulus is

developed. Through long advertising efforts and continued exposure of a particular symbol

the company succeeds in conditioning the people to recognize the bottle or packet of its

product, e.g. Vajardanti tooth paste and Dalda or Roth Vanaspathi.

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 The conditioned response establishes only a temporary rather a permanent behaviour

pattern and if it is not frequently enforces by the original stimulus the conditioned response

eventually disappears. We have to remember that all persons do not respond equally well to

conditioning nor are their responses generally predictable.

Relationship and Organization:

Learning effectiveness is enhanced if the thing to be learned is presented in a familiar

environmental setting. A salesman can more effectively demonstrate a vacuum cleaner or a

washing machine by using them at the customer place instead of describing their capacity and

clearing power in a store. The housewife is of cleaning own carpets and garments etc. This

sales manager should relate the products to the customer’s needs and interests.

Retention and forgetting of learned information:

Retention is explained in terms of impressions left in the nervous system as a result of

learning. Forgetting or negative retention develops with the deterioration of these impressions.

The phenomenon is important with respect to long-run promotion of advertising campaigns.

Messages will have been forgotten and must be relearned.

Need Satisfaction and Buyer’s Behaviour:

Buying behaviour is directed towards satisfying certain basic needs, clinical

psychologist has not yet agreed on a single list of basic needs. According to Maslow, an

individual normally tries to satisfy the most basic needs first and then he proceeds to the next

ones. He has mentioned seven basic needs. These are: (i) Psychological needs, (ii) Safety

needs, (iii) Belongingness and love needs, (iv) Esteem needs (v) Need for self- actualization

(vi) Desire to know and understand (vii) Aesthetic needs.

24
 The concept of basic needs and the theory that the individuals normally try to satisfy

them in some order are especially significant for marketing success.

Sociologists and Anthropologists view marketing as involving the activities of groups

of people motivated by group pressures. Now it is recognized that individuals as social

creatures are strongly influenced in their buying by the social and cultural environments in

which they live. The person with whom an individual regularly associates exerts strong

influenced on his or her behavior. Reference group including family and peer groups, social

groups, religious or fraternal organizations exert strong influences on an individual behavior.

Knowledge of reference groups and their influences make it easier to explain why

consumers behave in particular ways and more important to marketers to predict their

behavior.

The above factors affect the consumer behavior. Now the question is which group of

factors economic or psychological affects the consumer behavior most. There are conflicting

views in this regard. Some think that economic factors are more important. Actually both the

groups of factors are equally important in deciding the consumer behavior.

Relationship between reference group and diffusion process:

The diffusion process the social process of spreading information about new products

and services to persuade consumers to accept them is known as ‘ diffusion’ Researchers in

consumer behavior reveal the most users to not adopt an innovation simultaneously. Diffusion

process in a slow business and the entire process may take several years. In the initial phases

of market introduction of new products effort and money may be wasted if the marketers try

to cultivate the entire market all at once.

25
 Classification of Adopter Groups from the marketers point of view the society may be

classified into five groups: (i) Innovators, (ii) Early adopters, (iii) Early Majority, (iv) Late

Majority and (v) Laggards. The Model of diffusion process is visualized as a curve

approaching a normal distribution with 16 percent of the consumers in the combined

innovator and early adopter groups,34 percent each in the early and late majority groups and

16 percent in the laggard group. It is important target market segments at each stage in the

diffusion process.

Innovators – They are usually the youngest and have the highest social status and wealth.

They are cosmopolites.

Early Adoper – They are generally influential,i.e., opinion leaders. They enjoy high status

within their own social groups.

Early Majority – They are the most deliberate. They will not consider buying a new product

until a number of their peers have done so.

Late Majority – They group includes persons who have below average income and social

prestige and are older than members of earlier groups.

Laggards – They have still lower incomes and social status. They are the last to adopt new

products by the time they buy a new product. The earlier groups are often trying something

newer.

Status symbol Concept:

Sociologists explain the so-called status symbols by holding that people express their

personalities not so much in words as in symbol such as mannerisms, dress, ornaments

possession etc. Most people are concerned about their social status.

26
 Different products vary in their status symbol value and these values may change

from time to time. The ‘Baggi’ is horse-driven vehicle was once the major status symbol.

Then came the automobile, which now has been replaced, bby the house and its furnishings.

The status symbol concept is a valuable one for the marketer for when it recognizes

that is selling a symbol as well as a product it views its product more completely. The

marketer should not only how the product satisfies certain needs but also how it fits into

modern culture.

Reference Groups:

The people with whom an individual regularly associates extent strong influences on

his behavior. He or she must comfort to their standards of behavior to gain group acceptance.

Reference group include family and peer groups and religious and fraternal organization. The

most influential primary group is, of course, the Family- Peer groups composed of individuals

who spend considerable time together and are of fairly common age and social background.

Other groups with varying degress of socializinf influence and religious, educational, political

institutional and work group.

Any of these group may be classified as peer groups if they are sufficiently

homogenous. The peer groups have the greast influence on the individual as a consumer

because the group’s general interests and made of life are most nearly like his or her own.

Importance of reference group to marketing:

Knowledge of reference group and other influences makes it easier to explain why

consumers behave in a particular way. It keeps the marketer to predict their behavior. A

young executive, for example, may dress and act differently when in the job and in contact

with his business associates, but off the job, he may behave and dress quite differently.

27
Influential:

An influential is a person who serves as an opinion leader of a group. Such opinion

leaders are found at all levels of society. For examples, an unmarried girl in the college may

be a fashion leader. An older woman may be her group’s cooking expert because of her expert

knowledge in cooking; and a man, his group’s political leader because of whom he is known

not only within the group but also outside it. This influential tries or uses a product; his or her

followers are proved to the same. Marketers, therefore, often their promotional efforts to

reach influential and through them reach their followers by word of mouth or other subtle

influences exerted by the influential.

Need satisfaction and Buyer’s Behaviour:

Psychological studies indicate that all-human activities including buying behavior

buying behavior are directed towards satisfying certain basic needs. All individuals do not act

exactly in the same way in their efforts to fulfill their needs. These actions not only depend

upon the nature of the basic needs but also they are modified by the individual’s particular

environmental and social backgrounds. Whatever action the individual takes is directed

towards reducing tension built up to satisfy basic needs.

There is no unanimity among the psychologists in regard to a list of basic needs.

Maslow enumerates basic needs in their order of importance.

6. MASLOW’S LIST OF BASIC NEEDS:

According to Maslow an individual normally tries to satisfy the most need first. He or

she is then free to devote his or her efforts to the next one show on the list. Each categories of

need on the Maslow’s list is described briefly as follows.

28
i. Physiological Needs:

These needs are to satisfy hunger, thirst, sleep etc., these are the most basic needs and

until they are satisfied other needs are of on importance. Food, Cloth, and Shelter and most

popularly known as basic or physiological needs.

ii. Safety Needs:

In modern society these needs are more often for economic and social security rather

than for physical safety.

iii. Belongingness and Love Needs:

The needs for affectionate relations with individuals with individuals and a place in

society is so important that its lack is a common cause of maladjustment.

iv. Esteem Needs:

People need self-esteem, a high evaluation of self and the esteem of other in our

society. Fulfillment of these needs provides a feeling of self-confident and usefulness and

their non-fulfillment product feelings like inferiority and helpfulness.

v. Need for Self – Actualization:

This is the desire to achieve the maximum of one’s capabilities. Although it may be

present in every person, its fulfillment depends upon prior fulfillment of the more basic needs.

vi. Desire to know and understand:

These needs refer to the process of searching the meaning of the things around us.

29
vii. Aesthetic Needs:

These may not appear to the present among many individuals because of this failure to

satisfy more basic needs, but among some the needs for beauty is very strong.

Maslow’s classification of needs is known as ‘ Hierarchy of Needs’. He explanins that

a person satisfies his needs in that order. Unless physiological needs of a person are satisfied,

he cannot think to satisfying other needs in the hierarchy.

7. DIFFERENT TYPE OF BUYING MOTIVES:

Marketing today is consumer – oriented. The consumer is the King’. A marketing

manager, therefore, to be successful in his marketing efforts should understand the needs,

wants, buying motives and feelings of the customers of his product.

Buying motives motivate a consumer to purchase. Buying motive may be of many

types.

Inherent and learned buying motives.

Emotional and rational buying motives.

Psychological and Social Buying Motives.

Consumer Patronage Motives.

Now we shall discuss these motives as under.

Inherent and Learned buying Motives:

Inherent buying motives are those which arise from the basic needs of the consumers

such as hunger, sex, comfort and safety. In order to satisfy these motives, a consumer has to

30
make his best efforts. If these motives remain unsatisfied, he feels mental tension. Learned

motives, on the other hand, are those, which a customer acquires, or learn from the

environment in which he lives of from education.

These motives are social status, social acceptance, economic, social and political

achievement, fear and security. These motives are much affected by education and social

environment of the customers. As far as marketing is concerned, both types of motives play

very important role. These motives direct the marketing activities of the concerned. Out of

these two, learned motives are stronger and more useful and urgent and they are more in

number. In satisfying the learned motives, customers even do not care for the price of the

product.

Therefore, a successful manager must understand both these types of motives and

must create demand of the product by educating them of the merits of his product. Therefore,

a successful, manager must understand both these types of motives and must create demand of

the product by educating them of the merits of his product.

Emotional and Rational buying Motives:

Prof.M.T.Copeland has classified the buying motives in two types emotional and

Rational. Emotional buying motives are those which are affected by the feeling of the heart.

In such motives, heart dominates over head and mind. In satisfying these needs, sometimes

man is not rational . these motives are hunger, thirst, ego, prestige, comfort, pleasure, love,

and affection etc., Rational buying motives are those motives where a consumer is rational in

taking buying decision.

Here head and mind are dominant over heart. Before making any purchase, he satisfies

himself with the price, quality, durability, reliability and services and then decides to purchase

31
the goods, which are useful to him and are available at reasonable price. He takes more time

in making rational purchases. Both emotional and rational emotional or rational should be

inspired in selling his keeping the merit of the product in mind. The advertising progeamme

of the enterprise should on the appropriate motive.

8. STAGES OF BUYING PROCESS:

The purchaser or consumer takes his buying decision, for some commodities

immediately without much consideration such as items of daily use while for some other

commodities mainly luxury or durable items, he thinks much before taking a decision to

purchase it. Sometimes, he consults others. Generally, the purchaser passes through five

distinct stages in taking a decision for purchaseing a particular commodity. These stages are:

(i) Need Arousal (ii) Information search, (iii) Evaluation Behavior (iv) Purchase decision, and

(v) Post- Purchase feelings.

A. Need Arousal:

The buying process starts with need arousal. A need can be activated through internal

or external stimuli. The basic needs of a common man arise to a threshold level and become a

drive and he knows from his previous experience how to satisfy those needs like hunger,

thirst, sec, etc.,

B.Information Search:

After need arousal, the consumer tries to solve it and gathers the sources and

information about the product depending upon the intensity of need; it produces two states in

the individuals. The first state is called heightened attention when the consumer becomes

more receptive to the information regarding the item he needs.

32
C.Evaluation Behavior:

Having collected the information, the consumers clarify and evaluate the alternative. There is,

unfortunately no simple and single evaluation process used by all consumers or even by one

consumer in all buying situations. The most current process of evaluation is to judge the

product largely on a conscious and rational basic.

D.Purchase Decision:

Evaluation behavior leads the consumer to form a ranked set of preferences, normally a

consumers buys the article, and he or she likes most. But there are therr important

considerations for taking and buying decision. The marketer must consider these factors and

should try to provoke the felling of risk in the consumer and attempt to provide information

and support that will help him.

E.Post-Purchase Feelings:

After buying and trying the product, the consumer will feel some level of satisfaction or

dissatisfaction and level of satisfaction depends very much on the expectation and the

product’s perceived performance. If the product matches up to his expectations, the consumer

is satisfied; if it exceeds, he is highly satisfied; and if it falls short of expectations, he is

dissatisfied. Consumers form their expectations on the basis of messages and claims sent out

by the seller and other communications sources. If seller makes exaggerated claims, the

consumer will naturally fell dissatisfaction.

So, the smart seller must claims about the performance of the product that are congruent with

its quality so its quality so that the consumer would feel satisfied.

33
PARTICIPANTS IN THE BUYING PROCESS:

There are following five different roles that persons can play in a buying decision.

i.Initiator:

The initiator is a person, who first suggests or thins of the idea of buying the particular

product. For example, publisher of a book on marketing management initiates the professor to

task the students of his class to purchase the book. Here publisher is the initiator, the first

person to initiate the buying process.

ii.Influencer:

Influencer is a person who explicitly has some influence on the final buying decision

of other. Students are influenced by the advice of he professor while taking a decision to

purchase a book here professor is the influencer.

iii.Decider:

The decider is a person who ultimately determines any part of whole of the buying

decision i.e., Whether to buy what to buy, how to buy, when to buy or where to buy. Children

are the deciders for buying the toys, house lady for kitchen provisions, and head of the family

for durable luxury items.

iv. Buyer:

The buyer is the person who actually purchases. Buyer may be the decider or ha may

be some other person. Children (deciders) are the deciders for purchasing the toys, but the

parents make purchase. Thus, parents are buyers.

34
 v. User:

User is the person who actually uses or consumer the services or products. The

marketer’s task is to study the buying process and its main participants and their role in the

buying process. He should initiate all of them to make the purchases of his product at

different stages and through different strategies.

35
 CHAPTER-IV

CONSUMERS PREFERENCE TO TEA BRAND - AN ANALYSIS

1. INTRODUCTION:

A marketer is always interested to know how consumers respond to various marketing

stimuli – product, price, palce and promotion and other stimuli i.e, buyer’s environment –

economic, technological, political and cultural. The marketer studies the relationship between

marketing stimuli and consumer response. The buyer is considered as a block box, because

his mind cannot be imagined, as to his buying decision.

The buying decision depends on his attitude, preference, feeling etc. Satisfaction is a

person’s feeling of pleasure or disappointment resulting from comparing a product’s

perceived performance in relation to his or her expectations. Many companies are aiming for

high satisfaction because customers who are just satisfied are much less ready to switch. High

satisfaction creates on emotional bond with the brand not just an emotional preference. The

result is high customer loyalty.

Some of today’s most successful companies are raising expectations and delivering

performance to match to provide total customer satisfaction. Loyal customer account for a

substantial amount of company profits and the company cannot afford to loss them at any

cost. Factors influencing the consumer behavior are internal – needs, motives, perception and

attitude as well as external – family, social groups, culture, economic, business influences etc.

The Success or failure in marketing depends upon the Individual’s reactions,

expressed in the form of buying pattern. Mainly, they buyer is subjected to many influences

before the actual purchase. Aroused needs are forces which activate goal – oriented behaviour

36
to bring want satisfaction. Therefore in this study an attempt is made to analyze the consumer

preference to tea brands in the study area.

SEX WISE CLASSIFICATION OF THE RESPONDENTS:

The sex of the respondents has direct bearing on the consumption of tea. Therefore sex

wise classification of the respondents is presented in table 1.

Table – 1

Sex Wise Classification of the Respondents

No. of
SL.NO SEX Percentage
Respondents

1 Male 93 62

2 Female 57 38

Total 150 100

Source: Primary Data

Table – 1 shows the sex wise classification of the respondents. Out of 150 sample

respondents 62 percent of the respondents is made and 38 percent of the respondents is

female. It implies that the male respondents who consume tea out number female respondents.

37
 Figure – 1

Sex Wise Classification of the Respondents

150

100

50 No. of Respondents
0 Percentage Percentage
No. of Respondents
Male

Female

Total

1
2

AGE WISE CLASSIFICATION OF THE RESPONDENTS:

The respondents are classified according to their age, because age is considered as an

important factor that influences their preference to a particular product. The age wise

classification of the respondents is presented in table- 2.

38
 Table – 2

Age Wise Classification of the Respondents

Age Group No. of

Sl.No Percentage
(years) Respondents

1 Less than 20 14 9.33

2 20-30 31 20.67

3 30-40 43 28.67

4 40-50 28 18.67

5 More than 50 34 22.67

Total 150 100.01

Source: Primary data

Table – 2 explains the age wise classification of the respondents. It clearly shows out

of 150 respondents 28 percent of the respondents belong to the age group of 30-40 years.

Nearly 23 percent of the respondents fall under the age group of more than 40 years. The

respondents 20-30 years of age constitute nearly 21 percent of the total respondent. About 9

percent of the respondents belong to the age group of less than 20 years.

39
 Figure – 2

Age wise Classification of the Respondents

150
100
50
0
No. of Respondents
Less than 20

20-30

30-40

40-50

More than 50
Percentage

1 2 3 4 Total
5

3. EDUCATIONAL STATUS OF THE RESPONDENTS:

Education plays important role in molding the human wants and desires. The

behavior and inner urge of the individual are also determined by education. The educated

person can compare the cost and benefits, while making his buying decision. Therefore,

educational status of the respondents is also considered in this study. The educational status of

the respondents is given in table – 3.

40
 Table – 3

Educational Status of the Respondents

No.of
Sl.No Educational status Percentage
Respondents

1 Illiterate 13 8.67

2 Primary School Level 21 14

3 High School Level 47 31.33

4 Graduation 44 29.33

5 Technical 25 16.67

Total 150 100

Source: Primary data:

Table- 3 reveals that out 150 sample respondents nearly 31 percent of the respondents studied

up to high school level. The graduates come in second place; nearly 29 percent of the

respondents completed graduation. 16.67 percent of the respondents studied technical

education and 14 percent studied up to primary school level. A negligible 8.67 percent of the

respondents are illiterate.

41
 Figure – 3

Educational status of the Respondents

200

0
No.of Respondents
Illiterate
Primary School Level
High School Level
Graduation
Technical
Total No.of Respondents
Percentage

1 2 3 4 5

4. ICOME WISE CLASSIFICATION OF THE RESPONDENTS:

One of the deciding factors of the consumption of tea product is the income of the

respondents’ family. Income decides the quality and quantity of consumption. The table-4

indicates the total monthly income of the respondents.

42
 Table – 4

Income wise Classification of the Respondents

Monthly
No.of
Sl.No Income (in Percentage
Respondents
Rs)

1 Below 5000 28 18.67

2 5000 - 10000 47 31.33

3 10000 -15000 42 27.33

4 Above 15000 34 22.67

Total 151 100

Source: Primary date

It is understood from the table 4.4 that nearly 31 percent of the respondents’ monthly

income is in between Rs.5,000 – 10,000. 27.33 percent of the respondents monthly income is

in between Rs.10,000 – 15,000. About 23 percent of the respondents are in the higher income

group since their monthly income is more than Rs.15,000. The lower income group of the

respondents constitutes nearly 19 percent of the total respondents.

43
 Figure – 4

Income Wise Classification of the Respondents

No.of Respondents

1 Below 5000
2 5000 - 10000
3 10000 - 15000
4 Above 15000
4 Total

5.OCCUPATION WISE DISTRIBUTION OF THE RESPONDENTS:

The consumer of tea belongs to heterogeneous group residing at different areas

of Nagapattinam. So the sample classified om the basis of their occupation viz., Business,

Profession, employment and Housewife. All those who are the employees of the central and

State Government or Private concerns come under the category of employment. Those who

run business comes under the category of “Business”, these engaged in profession like

medicine, laws, income tax and other tax etc., are placed under the category “Profession”. All

those who depend exclusively on their husbands for their livelihood come under “Housewife”.

The Occupation wise distribution of the respondents is given table – 5.

44
 Table – 5

Occupation Wise Distribution of the Respondents

No.of
Sl.No Occuption Percentage
Respondents

1 Business 32 21.33

2 Profession 7 4.67

3 Employment 62 41.33

4 House Wife 49 32.67

Total 150 100

Source: Primary Data

Table – 5 shows that nearly 41 percent of the respondents is in the

employment. About 33 percent of the respondents is not doing any work other than looking

after their family. The respondents who are doing business constitue 21.33 percent of the total

respondents. Therefore, it is understood from the table the housewives and employees

segments are more potential market as compared to other segments.

45
 Figure – 5

Occupation Wise Distribution of the Respondents

Total
4

House Wife

Percentage
Employment
3

No.of Respondents
Profession
2

Business
1

0 50 100 150

6. PREFERENCE OF RESPODENTS TO TEA BRAND:

Preference of a consumer to a particular brand differs from other’s

preference. Consumer’s preference to a particular depends on quality, price and other factors.

In the same way, consumer preference to tea brand also depends on the quality, price, taste,

quantity package and other factors. In the study area consumers use various brands of tea;

their preference to particular brand of tea is explained in table -6.

46
 Table – 6

Preference of Respondents to tea Brand

No. of
Sl.No Brand Name Percentage
Respondents

1 Tata Chakra Gold 43 28.67

2 A.V.T 11 7.33

Brooke Bond Three

3 Roses 54 36

4 Tata Kannan Devan 15 10

5 Tata Agni 3 2

6 Taaza 6 4

7 Brooke Bond Red Lable 7 4.67

8 Taj Mahal 9 6

9 Tata Gemini 2 1.33

Total 150 100

Source: Primary date

Table -6 shows that the most preferred brand is Brooke Bond Three Roses, as

54 respondents accounting for about 36 percent prefer it. It implies that the Brooke

Bond Three Roses enjoys the supreme position with regards to consumers’ preference

to tea brand. Tata chakra Gold comes to second place which is preferred by 43

respondents constitutes nearly 29 percent. A.V.T and Taj mahal enjoy consumer

preference nearly equally. Similarly 2 percent of the respondents prefers Tata Gemini

and Tata agni equally. Tata kannan Deven has third place in the study area which is

preferred by 15 respondents constitutes 10 percent. The Brooke Bond Red Labels

preferred by 4.67 percent of the respondents.

47
 Figure -6

Preference of Respondents to Tea Brand

Total
9

Tata Gemini
Taj Mahal
8

Brooke Bond Red Lable

7

Taaza
6

Tata Agni No.of Respondents

5

Tata Kannan Devan Percentage

4

Brooke Bond Three Roses

3

A.V.T
2

Tata Chakra Gold

1

0 50 100 150 200 250

7. AWARENESS OF COMPETITIVE BRANDS:

In the study area the number of respondents who aware of the different tea

brands available in the market is explained in table-7.

48
 Table-7

Awareness of Competitive Brands

No. of
Sl.No Awareness Percentage
Respondents

1 Aware 139 92.67

2 Not Aware 11 7.33

Total 150 100

Source: Primary data

It is clear from the table-7, nearly 93 percent of the respondents is aware of the

different brands available in the market. This may be due to advertisement made by the

companies through television. Even some of the illiterate respondents are aware of the various

brands of the tea product. Due to illiteracy about 7 percent of the respondents is not aware of

the different brands available in the market.

The awareness of the respondents about various competitive brands is explained with the

help of a pie diagram.

49
 Figure-7

Awareness of Competitive Brands

Total
2

No. of Respondents
Not Aware
Percentage

Aware
1

0% 20% 40% 60% 80% 100%

8. FACTORS INFLUENCING BRAND PREFERENCE:

The consumers have many reasons for preferring particular brand of tea. The reasons for the

preference to a particular brand of tea as stated by the respondents are given in table – 8.

50
 Table -8

Factors Influencing Brand Preference

No. of
Sl.No Factors Percentage
Respondents

1 Quality 57 38

2 Color 2 1.33

3 Brand Loyalty 33 22

4 More Cup page 11 7.33

5 Low Price 25 16.67

6 Free Gift 13 8.67

7 Premium Offer 9 6

Total 150 100

Source: Primary data

Table-8 shows that out of 150 respondents 38 percent of the respondents were

preferred tea brand for quality. Brand loyalty is the predominant factors next to quality. 22

percent of the respondents was influnenced by brand loyalty. About 17 percent of the

respondents preferred a tea brand for low price. Nearly 9 percent and 6 percent of the

respondents were given importance to free ift and premium offer and 7 percent of the

respondents was chosen a tea brand because they felt it gave more cup page per kg.

51
 Figure – 8

Factors Influence Brand Preference

Total
7

Premium Offer

Free Gift
6

Low Price
5

Percentage
More Cuppage
4

No.of Respondents
Brand Loyalty
3

Colour
2

Quality
1

0 50 100 150

9. SOURCE OF BRAND AWARENESS OF THE RESPONDENTS:

The consumers are aware of the tea brands through news media like television, radio, cinema,

magazines and other sources such as retailer and sale man. The respondents are aware of

various brands of tea through the following ways as shown in table-9.

52
 Table-9

Source of Brand awareness of the Respondents

No. of
Sl.No Source Percentage
Respondents

1 Sales Representative 7 4.67

2 Advertisement 61 40.67

3 Friend and Relatives 21 14

4 Publicity 24 16

5 Sales Promotion Methods 37 24.66

Total 150 100

Source: Primary Data

Table- 9 reveals source of brand awareness of the respondents. Out of 150 sample

respondents 61 respondents got information about the tea brand through advertisements which

alone account for about 41 percent. In the next place nearly 25 percent of the respondents

known their tea brand through sales promotion methods.

The repersondents who know about tea brand through the advice of friends and

relatives and through recommendation of known people account to nearly 14 percent of total

respondents. The respondents who known about the tea brand through publicity account for

16 percent. Nearly 5 percent of the respondents have come to know about the brand through

sales representatives. It is seen from the table that the majority of the respondents come to

know their tea brand through advertisement. Therefore, it implies that the advertisement place

vital role in the tea industry.

53
 Figure-9

Source of Brand Awareness of the Respondents

160
140
120
100
80
60
40
20
0 No. of Respondents
Sales Representative

Friend and Relatives

Sales Promotion
Advertisement

Publicity

Total
Percentage
Methods

1 2 3 4 5

10.SOURCE OF BRAND AWARENESS OF THE RESPONDENTS AND GENDER

WISE CLASSIFICATION OF THE RESPONDENTS:

The sources from which the respondents of the study area gathered information about

the tea brand and gender wise classification is stated in table-10.

54
 Table -10

Source of Brand Awareness and Gender Wise Classification of the Respondents

No. of
Sl.No Source Male Female
Respondents

1 Sales Representative 5 2 7

2 Advertisement 31 30 61

3 Friend and Relatives 17 4 21

4 Publicity 18 6 24

5 Sales Promotion Methods 22 15 37

Total 93 57 150

Source: Primary Data

Table-10 clearly explains that out of 61 respondents irrespective of sex make their

purchases after obtaining relevant information about the tea products from the advertisement.

Out of 21 respondents,17 male and 4 female respondents are influenced by friends and

relative opinions while purchasing the tea product. Publicity influenced 18 male and 6 female

respondents. It is understood that the personal selling has lesser role as compared to other

sources in influencing the consumer of tea.

The opinion of the Male and Female respondents about the source of information is

verified with help of F-test.

55
 Figure -10

Source of Brand Awareness and Gender Wise Classification of the Respondents

Total
5

Sales Promotion Methods

Publicity No. of Respondents

4

Female
Friend and Relatives
3

Male
Advertisement
2

Sales Representative
1

0 50 100 150

Null Hypothesis:

There is no significant difference in the source of information that influenced the male

and female buyers of tea product.

Alternate Hypothesis:

There is no significant difference in the source of information that influenced the male and

female buyers of tea product.

56
 Table – 11

F-Test

Male X1 X1 x12 x2 x2 x22

5 -13.6 184.96 2 -9.4 88.36

31 12.4 153.76 30 18.6 345.96

17 -1.6 2.56 4 -7.4 54.76

18 -0.6 0.36 6 -5.4 29.16

22 3.4 11.56 15 3.6 12.96

   
x         

Larger Estimate of Variance

F=
Smaller Estimate of Variance


S12 =
n1-1 =353.2/5-1= 88.3

 =531.2/5-1= 132.75

S12 =
n2-1

S1
F= =132.75/88.3= 1.503
S2

57
 The F-Table value at 5% significance level for 4 degrees of freedom = 6.3883.

Result:

Since the calculated value of F is less than the table value, the null hypothesis is

accepted. Therefore it may be concluded that there is no difference in the source of

information that influenced the male and female buyers of tea product.

12. BUYING PERIODICITY OF THE RESPONDENTS:

A number of factors like income, job etc., determine the frequency of purchase. The

frequency of purchase of the respondents is classified into four categories viz., weekly,15

days once,monthly, whenever required. They are clearly shown in table – 11.

58
 Table – 12

Buying Periodicity of the Respondents

No. of
Sl.No Frequency Percentage
Respondents

1 Weekly 13 8.67

2 Fortnightly 27 18

3 Monthly 61 40.67

Whenever
4 Needed 49 32.66

Total 150 100

Source: Primary Data

The table -12 reveals the buying periodicity of the sample respondents. Out of

150 respondents 61 respondents accounting for 41 percent buy tea product monthly. The

reason may be that these respondents earn fixed monthly income. 18 percent of the

respondents purchase tea product once in 15 days. 32 percent of the respondents buy tea

product whenever needed. The remaining 13 respondents accounting for 9 percent are buying

tea product weekly once.

59
 Figure – 12

Buying Periodicity of the Respondents

Total
4

Whenever Needed

Percentage
Monthly
3

No. of Respondents

Fortnightly
2

Weekly
1

0 50 100 150

13. DURATION OF USING THE BRAND:

The duration of using a particular tea brand by the respondents is given in table – 13.

60
 Table – 13

DURATION OF USING THE BRAND

No. of
Sl.No Duration Percentage
Respondents

1 Less than one year 37 24.67

2 1 - 2 years 12 8

3 2 - 3 years 21 14

4 3 - 4 years 27 18

5 4 - 5 years 19 12.67

6 More than 5 years 34 22.66

Total 150 100

Source: Primary Data

It is crystal clear from the table that 24.67 percent of the respondents was using the tea

brand less than one year. They are new consumers of the brand, previously they consumed

some other brand, and recently they were switched over the brand. Therefore it implies that in

the study area most of the respondents are ready to consume new brand, if they are satisfied

with the expectation of the respondents. Nearly 23 percent of the respondents using the brand

for more than 5 years, it shows their strong brand loyalty. Another 12.67 percent of the

respondents using the brand for 4 to 5 years and 18 percent of the respondents using the brand

for 3 to 4 years, it shows that they are satisfied with the brand.

The duration of using the particular brand by the respondents is shown in figure – 13.

61
 Figure – 13

DURATION OF USING THE BRAND

Total
6

More than 5 years

4 - 5 years
5

Percentage
3 - 4 years
4

No. of Respondents
2 - 3 years
3

1 - 2 years
2

Less than one year

1

0 50 100 150

14. EFFECTIVE SALES PROMOTION MEDIA:

The opinion of the respondents about the sales promotion to be adopted by the

launching company is given in table-14.

62
 Table – 14

Effective Sales Promotion Media

No. of
Sl.No Media Percentage
Respondents

1 Newspaper and Magazines 12 8

2 Radio 27 18

3 Television 85 56.67

4 Cinema (Film) 11 7.33

5 Wall Advertisement 15 10

Total 150 100

Source: primary Data

Table-14 clearly exhibits that out of 150 respondents almost 57 percent of respondents

suggested the television is the effective sales promotion media, 18 percent respondents

suggest cinema. Nearly 10 percent and 8 percent of the respondents suggested newspaper and

wallpaper advertisement respectively. Therefore, it is understood from the table advertisement

through television is the most effective sales promotion media in the study unit.

63
 Figure – 14

Effective Sales Promotion Media

Total
5

Wall Advertisement

Cinema (Film)
4

Percentage
Television No. of Respondents
3

Radio
2

Newspaper and Magazines

1

0 50 100 150

15. EFFECTIVE SALES PROMOTION MEDIA AND AGE WISE

CLASSIFICATION OF THE RESPONDENTS:

The opinion of the respondents about efficetive sales promotion media and age

wise classification of the respondents is given in table – 15.

64
 Table – 15

Effective Sales Promotion Media and Age Wise Classification of the Respondents

News Paper
Age of the Wall
and Radio Television Cinema Total
Respondents Advertisement
Magazine

Less than 20 1 3 6 2 2 14

20 - 30 1 3 25 1 1 31

30 - 40 5 8 27 2 1 43

40 - 50 2 7 11 2 6 28

More than 50 3 6 16 4 5 34

Total 12 27 85 11 15 150

Source: Primary data

Table – 15 shows that the most of the respondents irrespective of age opined that

television media is most effective than others. Therefore, it is necessary to examine whether

there is any significant difference between opinion of the respondents about sales promotion

media and the age of the respondents.

65
 Figure – 15

Effective Sales Promotion Media and Age Wise Classification of the Respondents

Total

Wall Advertisement Total

Mor than 50
Cinema
40 - 50
Television 30 - 40
20 - 30
Radio
Less than 20

News Paper and Magazine

0 50 100 150

Testing the opinion:

To verity the opinion of the respondents about the effective sales promotion media a

null hypothesis is framed and tested with the help of one-way ANOVA.

Null Hypothesis:

There is no significant difference between opinion of the respondents about sales

promotion media and the age of the respondents.

Alternate Hypothesis:

There is a significant difference between opinion of the respondents about sales

promotion media and the age of the respondents.

66
 Table – 16

ANOVAs Table

Sum of
Source of Degree of Mean Table
Squares F Ratio
Variation Freedom Square Value
(SS)

Between Samples 788.8 4 197.20

197.20/20.41 = 9.66 2.8661
Within Samples 408.2 20 20.41

Source: Computed by the researcher

Result:

Since the table value is less than the calculated value, the null hypothesis is rejected.

Therefore, in may be concluded that there is a significant difference between opinion of the

respondents about sales promotion media and the age of the respondents.

67
 Figure – 16

ANOVAs Table

Table Value

F Ratio

Within Samples
Mean Square
Between Samples

Degree of Freedom

Sum of Squares (SS)

0 200 400 600 800

17. EFFECTIVE SALES PROMOTION METHOD:

The opinion of the respondents about the sales promotion methods adopted by

launching company is given in table- 17.

68
 Table – 17

Effective Sales Promotion Methods

No. of
Sl.No Methods Percentage
Respondents

1 Price Reduction 82 54.66

2 Premium Offer 21 14

3 Free Offer 25 16.67

4 Free Gifts 22 14.67

Total 150 100

Source: Primary data

It is understood from the table- 17 majority of the respondents stated that the price

reduction is effective sales promotion method. 21 percent of the respondents opined that the

premium offer i.e., extra quantity is the effective sales promotion method.

14 percent of the respondents expect free offer from time to time to get more quantity

and 14 percent of the respondents situated that the free gifts with the product is effective sales

promotion technique. Therefore, it may be assumed that the price reduction is the effective

sales promotion methods in the study area.

The opinion of the respondents about effective sales promotion method is explained

with the help of a bar diagram.

69
 Figure – 17

Effective Sales Promotion Methods

Total
4

Free Gifts

Percentage
Free Offer
3

No. of Respondents

Premium Offer
2

Price Reduction
1

0 50 100 150

Figure – 17 shows that the price reduction is the effective sales promotion

methods in the study area.

18. OPINION REGARDING PRICE AND INCOME WISE CLASSIFICATION:

The opinion of the respondents about the opinion regardinf price and income

wise classification adopted by launching company is given in table- 18.

70
71
 Table – 18

Opinion Regarding Price and Income Wise Classification

Income Level
Opinion
Below 5000- 10000- More than No.of
5000 10000 15000 15000 Respondents

High 17 29 32 6 84

Normal 9 17 6 21 53

Cheap 2 1 3 7 13

Total 28 47 41 34 150

Source: Primary data

Table – 18 shows that the opinion of the respondents about the price of the tea

product. Out of 150 respondents 84 respondents felt that the price of tea product was high

followed by 53 respondents felt that the price charged by the company was normal. Negligible

portion of the respondent opined that the price was cheap.

Out of 28 respondents who earn monthly income below Rs.5,000 17 respondents were

felt high whereas 9 respondents felt normal; only two respondents felt the price was cheap.

In the opinion of the respondents who are earning monthly income between Rs.5000 –

10000, 29 respondents felt high, 17 respondents felt normal and only one respondent felt

cheap about the price of the tea brand.

In case of the respondents who are earning monthly income between 10,000 and

15,000, majority of the respondents felt the price charged by the company on tea product was

too high. The higher – income group, majority of the respondents opined that the price was

normal.

72
 Therefore it is understood from the table that the respondent’s perception about the

price of tea product differs according to their income.

Figure – 18

Opinion Regarding Price and Income Wise Classification

No.of Respondents

More than 15000

Total
Income Level

Cheap
10000-15000
Normal

5000-10000 High

Below 5000

0 50 100 150

To verity the opinion of the respondents about the price of a tea product a null hypothesis is

framed and tested with the hells of one – way ANOVA.

Null Hypothesis:

There is no significant difference between the opinions of the respondents about the

price of the tea product and different income levels of the respondents.

Alternate Hypothesis:

There is a significant between the opinions of the respondents about the price of the

tea product and different income levels of the respondents.

73
74
 Table – 19

ANOVA Table

Source of Sum of Degree of Mean Table

F-Radio
Variation Squares Freedom Square Value

Between
Samples 68.53 3 22.84

Within 8.8452

Samples 1156.68 8 144.59

144.59/22.84=6.33

Source: Compiled by the researcher

Result:

Since the table value is higher than the calculated value, the null hypothesis is

accepted. So it true that there is no difference between the opinions of the respondents about

the price of the tea product and different income levels of the respondents.

75
 Figure – 19

ANOVA Table

Table Value

F-Radio

Within Samples
Mean Square
Between Samples

Degree of Freedom

Sum of Squares

0 500 1000 1500

20. OPINION REGARDING PROMOTION STRATEGY:

The opinion of the respondents about the promotion methods influence in selection of a

particular tea brand is presented in table – 20.

76
 Table – 20

Opinion Regarding Promotion Strategy

No. of
Sl.No Opinion Percentage
Respondents

1 Influenced 123 82

Not
2 Influenced 27 18

Total 150 100

Source: Primary data

Table – 20 reveals the opinion of the majority of the respondents; the promotion

method creates a big impact on the selection of a particular brand.

The opinion of the respondents about the promotion methods influence selection of a

particular brand is explained with the help of a pie diagram given in figure – 20.

77
 Figure – 20

Opinion Regarding Promotion Strategy

Total
2

Percentage
Not Influenced
No.of Respondents

Influenced
1

0 50 100 150

Figure – 20 shows the promotion method creates a big impact on the selection of a

particular brand tea brand.

21. DEALERS’ INFLUENCE ON CONSUMERS:

Generally consumers are influences by the dealers particularly retailers to buy

particular company product. The number of respondents who are influenced by the dealers is

explained in table – 21.

78
 Table – 21

Dealers’ influence on consumers

No. of
Opinion Percentage
Respondents

Influenced 108 72

Not
Influenced 42 28

Total 150 100

Source: Primary data

It is clear from the table – 21 that nearly 72 percent of the respondents are influenced

by the dealers to buy the particular company brand. The dealer while buying tea brand does

not influence 28 percent of the respondents.

It is perceived that in the study area majority of the consumers are influenced by the

dealers to buy particular brand. Therefore the company must satisfy the dealers to have

effective sales management.

79
80
 Figure – 21

Dealers’ influence on consumers

Total

Percentage
Not Influenced
No. of Respondents

Influenced

0 50 100 150

22. BRAND LOYALTY:

The number of respondents who are loyal to their brands and how many of

them are ready to change their brand when suitable products of their expectations are

available in the market is explained in table – 22.

81
 Table – 22

Brand Loyalty

No.of
Change of Brand Percentage
Respondents

Willing to change 103 68.67

Unwilling to
change 47 31.33

Total 150 100

Source: Primary data

It is clear from table – 22 that out of 150 respondents nearly 69 percent of the

respondents is ready to change their brand if better product is available in the market and 31

percent of the respondents is reluctant to change their brand because of the brand loyalist

which shows the confidence of the despondence on the preferred tea brand. It is brand if better

product is available in the market.

The brand loyalty of the despondence is explained with the help of a pie diagram.

82
 Figure – 22

Brand Loyalty

Total

Percentage
Unwilling to change
No.of Respondents

Willing to change

0 50 100 150

Figure- 22 shows that majority of the respondents is ready to change their

brands if better product is available in the market.

23. BRAND LOYALTY AND EDUCATIONAL WISE CLASSIFICATION:

The brand loyalty and educational wise classification of the respondents is

presented table-23.

83
 Table – 23

Brand Loyalty and Educational Wise Classification

Brand Loyalty

Educational Qualification Willing to Unwilling

change the to change Total
brand the Brand

Illiterate 8 5 13

Primary School Level 17 4 21

Higher Secondary School

35 12 47
Level

Graduation 26 18 44

Technical Qualification' 17 8 25

Total 103 47 150

Source: Primary Data

Table – 23 shows that the majority of the respondents irrespective educational

qualifications are willing to change their brand if better product is available in the market. So,

it is necessary to examine whether there is any significant difference between opinion of the

respondents about brand loyalty and educational qualification.

To verity the opinion of the respondents about the brand loyalty of a tea product a null

hypothesis is framed and tested with the help of chi square test.\

84
 Figure – 23

Brand Loyalty and Educational Wise Classification

Total

Technical Qualification'
Brand Loyalty Total
Graduation
Brand Loyalty Unwilling to
Higher Secondary change the Brand
School Level
Brand Loyalty Willing to
Primary School Level change the brand

Illiterate

0 50 100 150

Null Hypothesis:

There is no significant difference between opinion respondents about brand loyalty

and educational qualifications of the respondents.

Alternate Hypothesis:

There is a qualification difference between opinion of the respondents about brand

loyalty and educational qualifications of the respondents.

24. CHI-SQUARE TEST RESULT:

The Chi-square test result is given in table – 24.

85
 Table – 24

Chi – Square Test Result

O E (O-E)2 (O-E)2/E

8 8.93 0.865 0.097

17 14.42 6.656 0.462

35 32.27 7.453 0.231

26 30.21 17.724 0.587

17 17.71 0.029 0.002

5 4.07 0.865 0.213

4 6.58 6.656 1.011

12 14.73 7.453 0.506

18 13.79 17.724 1.285

8 7.83 0.029 0.004

 4.398

Source: Compiled by the researcher

Computed Value = 4.398

Degree of freedom = (5-1) (2-1) = 4

Table value at 5% level of Significant = 9.49

Result:

As the calculated value is less than the table value, it is concluded that the Null

hypothesis is accepted. So it is proved that there is no significant difference between opinion

of the respondents about brand loyalty and educational qualification of the respondents.

86
 Figure – 24

Chi – Square Test Result

(O-E)2/E
å(E-O)2/E
93 2 7 1 1 07 58 3 9 7.83
8
8 17 35 26 17 5 4 12 18

14 13

17.724
8. .4 .2 .2 .7 4. 6. .7 .7

6.656
(O-E)2/E
14 32 30 17

0.029

7.453

0.865
0 1 2 3 4 5

25. REASONS FOR WILLING TO CHANGE THE BRAND:

Out of 150 respondents 103 respondents are willing to change their brand. The reasons stated

by the respondents for willing to change their brand are explained in table – 25.

Table – 25

Reasons for Willing to Change the Brand

No.of
S.No Reasons Percentage
Respondents

1 Attractive Package 7 6.8

2 Least Price 21 20.39

3 More Discount Offer 15 14.56

4 Better Quality 60 58.25

Total 103 100

87
 Source: Primary data

Table – 25 shows that the majority of the respondents are willing to swich over to the

new brand if it offers brand quality. As far as tea brand is concerned, the respondents give

more important o quality of the product than price because only 20 percent of the respondents

were ready to switch over to the new brand for least price.

Figure – 25

Reasons for Willing to Change the Brand

Total
4

Better Quality

Percentage
More Discount Offer
3

No.of Respondents

Least Price
2

Attractive Package
1

0 50 100 150

26. REASONS FOR UNWILLING TO CHANGE THE BRAND:

In addition to strong brand loyalty the reasons for unwilling to switch over the new brand is

presented in table -26.

88
 Table -26

Reasons for Unwilling to Change the brands’

No. of
Sl.No Reasons Percentage
Respondents

No Knowledge about quality

1 of the new brand 6 12.77

Price and Discount are

2 immaterial 15 31.91

Highly satisfied with existing

3 brand 26 55.32

Total 47 100

Source: Primary data

It is clear from the table – 26 that the nearly 55 percent of the respondent was

unwilling to switch over to the new brand because they were highly satisfied with the existing

brand. Another 32 percent of the respondents reluctant to change the brand because price and

discount are immaterial to them, they concerned about only quality of the product. 13 percent

of the respondents opined that they have no knowledge about quality of the new brand as their

reasons for unwilling to change their brand.

89
Figure – 26

Reasons for Unwilling to Change the brands

Total
3

Highly satisfied with

existing brand
Percentage
Price and Discount are No. of Respondents
2

immaterial

No Knowledge about
1

quality of the new brand

0 20 40 60 80 100

27. EXPECTATIONS OF THE CONSUMER:

The consumers may expect certain things from the producers of the goods and

services. The producers should satisfy the expectation of the consumers in order to with stand

in the highly competitive market. The expectation of the consumers of the tea is listed in table

– 27.

90
 Table -27

Expectations of the Consumers

No.of
Sl.No Expectations Percentage
Respondents

Quality
1 improvement 57 38

2 Price Reduction 44 29.33

3 More Discount 21 14

4 Extra Premium 17 11.33

5 Free Sample 11 7.34

Total 150 100

Source: Primary Data

Table -27 shows the expectation of the respondents in the study area from the

producers of the tea products. Out of 150 respondents 38 percent of the respondents expect

improvement of quality with the same price level. 29.33 percent of the respondents expect to

reduce price of the tea with same quality and 14 percent expects more discounts. The

respondents who expect extra premium offer constitute 11.33 percent of the total respondents.

The remaining 7.34 percent of the respondents expect free samples from the producers to test

the quality and adoptability of the tea brand. Therefore, the producers of the tea should try to

satisfy the expectations of the consumers to with stand in the market forever.

91
 Figure – 27

Expectations of the Consumers

Total
5

Free Sample

Extra Premium
4

Percentage
More Discount No.of Respondents
3

Price Reduction
2

Quality improvement
1

0 50 100 150

92
 CHAPTER –V

CONCLUSION

1. Summary:

Consumer behavior is helpful in understanding the purchase behavior and

preference of different consumers. As consumers differ in terms of sex, age, education,

occupation, income, family set-up, religion, nationality and social status. The needs of elderly

consumers are different from those of young consumers. Newly married couples have needs

which are totally different from older retired married couples because of these different

background factors the consumers have different needs and consumer only buy those products

and services, which they think will satisfy their needs.

To successfully market to different market segments, the marketing manager needs

appropriate marketing strategies which he can design only when he understands the factors

which account for these differences in consumer behaviour and tastes. In today’s world of

rapidly changing technology, consumer tastes are also characterized by fast changes. To

survive in the market, a firm has to be constantly innovating and understand the latest

consumer trends and tastes. Consumer behavior provides invaluable clues and guidelines to

marketers on new technological frontiers which they should explore. Consumer behavior is a

process, and exogenous environmental factors which influence this process.

All these factors and the type of influence which they exert on an individual’s

consumption behavior can be understood and analyzed. Moreover, some of these factors can

be further influenced by specific elements of the marketing strategy, so that the consumer

behavior process results in a definite purchase decision. To the extent that the marketer can

93
understand and manipulate the influencing factors, they can predict the behavior of

consumers.

Though prediction can never be absolutely accurate, it certainly reduces the risk

associated with different marketing strategies. Thus, the importance of consumer behavior lies

in the fact that behavior can be understood and influenced to ensure a positive purchase

decision. The marketing manager’s interest lies exactly here i.e. to ensure that his marketing

strategy result in purchase of the product. A consumer’s decision to purchase a product is

influenced by a number of variables which can be classified in to four categories, namely

psychological, personal, social, and cultural. Man is a many faceted, complex psychological

being. His consumer behavior is influenced by his motives, perception, attitudes and learning.

Each of these psychological factors provides a unique mental framework for each consumer

with in which he makes his purchase decision. For the marketer it is essential to associate his

product with the motives and positive perceptions of his consumers.

Also he must ensure that the product concept fit with the consumer’s existing attitudes

and beliefs. Man is a social animal and is influenced by the people with whom he interacts.

Each person interacts with and is a member of many groups. These groups provide a point of

reference or comparison for the consumer and are known as reference groups and strongly

affect his product and brand choices. Amongst the various groups such as family, friends,

social organization, professional associations, the strongest influence is exerted by the family.

Culture is the most pervasive influence on people lives and influences all aspects of people

behavior, consumers operate within the cultural framework of their society and purchase only

those products which fit in with their cultural norms.

94
Within each cultural there exist many sub – culture comprising distinct nationality groups,

religious groups, racial groups geographic groups that have their own unique values and life –

style.

Social classes are group of people who have similar income, education, wealth, social

status, value and belifes. The marketer must understand the people with different cultural,

sub-cultural and social class background have different product and brand preferences and

needs suitably modified products and marketing strategies.

India plays significant role in the production of tea and meets the one – fourth needs of

world consumption. The tea industry, which is agro based and labor intensive is having

considerable share in the India’s exports and contributing largely to the India’s national

income. Considering the importance of the tea industry in the Indian economy an attempt has

been made to understand the consumer preference with reference to the brand and to find out

how far the consumer’s preference finds important place in tea market. It also studies the

maximum information regarding the consumer’s behavior in purchasing tea product. The

study focused on how and why consumers make decisions to buy goods and services.

The primary objective of the study is to find out consumer’s preference to tea brands

in the study area. The design of the of the research is explorative in nature as it tries to

identify the preference of the consumers to tea brand in Nagapattinam town. Both primary

secondary data have been used in this study, primary data, and the opinion of the consumers

of tea brand using a structural interview schedule prepared specially for that purpose.

Secondary data have been collected from relates books and magazines, from relevant

published and unpublished reports. The data thus collected from the opinion of the consumers

were tabulated, analyzed and interpreted with the help of tables, diagrams and charts. Bar

diagrams and pie diagrams were used to simplify the data.

95
 All the consumers who consume tea in the study area are the population of the study.

The total population of the study is infinite and cannot be qualified. The total number of

respondents for this research was 150, Convenience sampling method of non – probability

sampling is used in this research. The data, thus collected have been properly classified

tabulated, graphs; Chi-square test and ANOVA are employed to analyze the data and testing

of hypotheses in an effective manner.

The limitations of the study are (i)The study is confined to Nagapattinam town limit

only. Therefore, the findings of the study are not universally applicable. (ii) The study is

restricted to the opinion of the consumers only. Opinion of the dealers and tea stalls buyers

are not taken into account. (iii) The result of the study cannot be generalized to other areas

due to demographical differences. (iv) The study was taken in general point of view of the

consumer behavior on different tea brands and not a specific company. (v) The sample size is

150 only, which may not be sufficient to conclude the accurate response. (vi) The report is

purely based on respondents’ data. There may be biased information.

The whole study has been organized and presented in five chapters. Introduction and

framework of the study is given in the First Chapter. A brief sketch of production,

consumption and marketing of tea is dealt with in Second Chapter. Third chapter is devoted to

consumer behaviour and related literature. Fourth Chapter is concerned with analysis of

consumer’ preference to tea brand in the study area. Summary of finding, suggestion and

conclusion of the study is presented in the concluding Fifth Chapter.

2. Findings:

The results of the study are

96
 It is that the most preferred tea brand of the respondents is Tata Chakra Gold, as 54

respondents accounting for brand for about 36 percent prefer it. It implies that the Tata chakra

Gold enjoys the supreme position with regards to consumer’s preference to tea brand.

Brooke Bond Three Roses comes to second place which is preferred by 43

respondents constitutes nearly 29 percent. A.V.T. and Taj Mahal enjoy consumer preference

nearly equally. Similarly 2 percent of the respondents prefers Tata Gemini and Tata Agni

equally.

Nearly 93 percent of the respondents is aware of the different brands available in the

market. This may be due to advvertisment made by the companies throught television. Even

some of the illiterate respondents are aware of the various brands of the tea product. Due to

illiteracy about 7 percent of the respondents is not aware of the different brands available in

the market.

Out of 150 respondents 38 percent of the respondents was preferred tea brand for

quality. Brand loyalty is the predominant factor next to quality. 22 percent of the respondents

were influenced by brand loyalty. Nearly 9 percent and 6 percent of the respondents were

given importance to free gift and premium offer and 7 percent of the respondents was chosen

a tea brand because they felt that it gave more cup page per kg.

It is found that there is no difference in the source of information that influenced the

male and female buyers of tea product.

It is found that there is no different between the opinions of the respondents about the

price of the tea product and different income levels of the respondents.

In the study area the promotion method creates a big impact on the selection of a

particular brand.

97
 It is found that there is no significant difference between opinion of the respondents

about brand loyalty and educational qualifications of the respondents.

Suggestions:

In the light of foregoing analysis of the study the following practical suggestions are

given for the effective functioning and improvement of tea market.

The study reveals that the majority of the respondents come to known their tea brand

through advertisement. Therefore, it implies that the advertisement palce vital role in the tea

industry.

To increase more awareness among the consumer, effective and genuine

advertisement must be made. The advertising is not only retaining existing consumer but also

for attracting new consumers.

In order to satisfy the consumers who are housewives, it is suggested to the tea

companies that small jar type package may be introduced in the place of poly pack.

In the study area the consumers always look for better quality and reasonable price of

and reduce the price so as to avoid shift in the consumer’s choice to other substitutes.

The most of female consumers may take the decision to purchase the particular tea

brand for their family. Therefore, steps may be taken by the tea companies to convince this

group.

Only less priced products can successfully penetrate the existing market therefore the

launching company may be taken by the tea company convince this groups.

98
 It is essential for the new tea product launching company to convince the buyers and

their friends and relatives about the superiority of the new product.

To achieve this personal selling method is the best suitable sales technique to be

followed besides effective advertisement through popular media.

Conclusion:

To conclude the challenge for every producer of consumer goods is not to produce

satisfied customer but to produce loyal customer. Many companies are aiming for high

satisfied because consumers who are just satisfied still find it easy to switch when a better

offer comes along.

Those who are highly satisfied are much less ready to switch. High satisfaction creates

on emotional bond with the brand not just an emotional preference. The result is high

customer loyalty, It is true that the modern marketing starts and ends with consumers.

Therefore it is necessary that the tea companies must understand the opinion of the consumers

to with stand in the market.

More over most of the consumers are ready to switch over other brand if its offer

better quality with least price. Therefore, in order to withstand in the market tea marketers

must consider the opinions of the consumers.

99
 BIBLIOGRAPHY

Leon G. Sehiffman, Lesliflazarkank “Maslow’s List of basic needs” Consumer Behavior,

Pearson Education, Seventh Edition PP 145 – 157.

C.R.Kothari, “Research design, sampling Technique and analysis of data, Research

Methodology, Methods and Techniques, Second Edition, Wishwa Prakashan Publishing

house, New Delhi,PP26-30.

Philip Kilter, “Need satisfaction and buyer’s Behavior”, Marketing Management Eleventh

Edition, Pearson education PP 225 – 231.

Rajan Nair, Meaning of buying motive’s marketing, Sultan Chand & Sons, New Delhi –

1988.

Dr. Memorial, C.B. & Dr. Memorial, S.Diffusion process – Marketing Management, kidib

mahal Allahabad, PP 16-25.

Magazine:

Business World - January 2011

Hindu Survey on Indian Industry - 2011 -2012

Economic and Political Weekly - January 2011

Sothern Economist - March 2011

August 1, 2011

Reader’s Views - February 2011

The Hindu survey on

Indian Agriculture - 2011 – 2012

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News Papers:

The Hindu - February 15 th 2012

Business Line - January 18 th 2012

Indian Express - March 1st 2012

The Economic Times - February 21st 2012

Websites:

www.MSN.com

www.Google.com

www.Yahoo.com

www.farsinet.com/hottea/

www.rediffmail.com

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 A STUDY ON CONSUMER PREFERENCE TO TEA BRAND IN
NAGAPATTINAM TOWN

QUESTIONNAIRE

1.Name:

2.Sex:

3.Age:

(i).Less than 20 Years

(ii)20 -30 Years

(iii)30-40 Years

(iv).40 -50 Years

(v).More than 50 Years

4.Educational Qualification

(i ) Illiterate

(ii) Primary School Level

(iii) High School Level

(iv) Graduation

(v) Technical

5.Monthly income:

(i) Below 5000

(ii) 50000 – 10000

(iii) 10000 – 15000

(iv) Above 15000

6.Occupation:

(i) Business

(ii) Profession

(iii) Employment

(iv) House Wife

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7.What is your preference to tea brand available in the market?

8.Do You Aware of the Competitive Brands of tea?

Yes / No

9.Have you influenced by promotion strategy of the tea company?

Influenced

Not Influenced

10.Why do choose that particular brand?

(i) Quality

(ii) Color

(iii) Brand Loyalty

(iv) More Cup page

(v) Low Price

(vi) Free Gift

(vii) Premium offer

11.How did you come to know about the Brand?

(i) From Advertisement

(ii) From sales representative

(iii) From Publicity

(iv) From Friends and relatives

(v) Others – Specify Purchase

12.Which type of advertisement is suitable for promoting the tea product?

(i) Television

(ii) Radio

(iii) Press Media

(iv) Cinema

(v) Wall Advertisement

(vi) Others – Specify

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 (vii) Frequency of purchase

(viii) Weekly

(ix) Fortnightly

(x) Monthly

(xi) Whenever needed

13.If any new product is introduced new company will you buy it?

Yes / No

14.Do you know the competitive brand of the tea product presently used by you?

Yes / No

15.How long have been using the brands?

Less than one year

1 – 2 Years

2 – 3 Years

3 – 4 Years

4 – 5 Years

More than five Years

16.Which of the sales promotion method attract you more?

(i) Price Reduction

(ii) Premium Offer

(iii) Offer Price

(iv) Free Gifts

(v) Other Specify

17.Are you willing to switch over from one brand to another?

Yes / No

18.If yes, what are the reasons?

(i) Least Price

(ii) Better Quality

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 (iii) More Discount

(iv) Premium Offer

(v) Others Specify

19.If no, what are the reasons?

No Knowledge about quality of the new brand

Price and discount are immaterial

Highly satisfied with Existing Brand

Others Specify

20.What is your opinion regarding price of the tea brand?

High

Normal

Cheap

21.What is your influenced by dealer of the tea of the company?

Influenced

Not Influenced

22.What is your expectation from tea brand marketer?

(i) Quality Improvement

(ii) Price Reduction

(iii) More Discounts

(iv) Extra Premium

(v) Free Samples

(vi) Others – Specify

--------------X-------------

105