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Lincon

Senior Lecturer 1409mba58 Dept. Of Business Administration, 3rd Sambalpur University business administration, r University

DECLARATION

I do hereby declare that the report entitled as A PROJECT REPORT ON CONSUMER PERCEPTION ON AMUL ICE CREAM IN SAMBALPUR submitted to the Department of Business Administration, Sambalpur University under the esteemed guidance of Dr. T. K. Das ( Senior Lecturer) is of my own and is not published anywhere before. Its genuinely the true copy.

University

ACKNOWLEDGEMENT

At the very out set, I would like to express my sincere gratitude to Professor P. Gahan the present H.O.D. of Department of Business Administration, Sambalpur University, for giving his helping hands in completing my project. My sincere thanks to my subject teacher without whose guidance it would have not been possible on my part to complete Research Methodology Project. I am very thankful to my teacher and friends who have helped me a lot in collecting the necessary

information. Their loving and caring words of praise have really encouraged me. Thanking You

CONTENTS

1.

COLLECTION OF DATA LIMITATION 2. REVIEW OF LITERATURE: EXECUTIVE SUMMARY 3. RESEARCH METHODOLOGY: MEANING OF RESEARCH SAMPLING METHOD CHI-SQUARE TEST

4. DATA ANALYSIS AND INTERPRETATION: CHI-SQUARE TEST ANALYSIS AND INTERPRETATION ANOVA TEST ANALYSIS AND INTERPRETATION 5. CONCLUSION: COMMENTS SUGGETIONS 6. BIBLIOGRAPHY:

INTRODUCTION

Amul Ice Cream was launched on 10th March, 1996 in Gujarat. The portfolio consisted of impulse products like sticks, cones, cups as well as take home packs and institutional/catering packs. Amul ice cream was launched on the

platform of Real Milk. Real Ice Cream given that it is a milk company and the wholesomeness of its products gives it a competitive advantage. In 1997, Amul ice creams entered Mumbai followed by Chennai in 1998 and Kolkata and Delhi in 2002. Nationally it was rolled out across the country in 1999. It has combated competition like Walls, Mother Dairy and achieved the No 1 position in the country. This position was achieved in 2001 and it has continued to remain at the top. Today the market share of Amul ice cream is 38% share against the 9% market share of HLL, thus making it 4 times larger than its closest competitor. Not only has it grown at a phenomenal rate but has added a vast variety of flavours to its ever growing range. Currently it offers a selection of 220 products. Amul has always brought newness in its products and the same applies for ice creams. In January 2007, Amul introduced SUGAR FREE & ProLife Probiotic Wellness Ice Cream, which was a first in India. This range of SUGAR FREE, LOW FAT Diabetic Delight & ProLife Probiotic Wellness Ice Cream is created for the health conscious. Amuls entry into ice creams is regarded as successful due to the large market share it was able to capture within a short period of time due

1. To find out the nature, extent and effect of psychological influences on choices, including a desire to meet individual needs. 2. To find out the nature, extent and effect of sociological influences on choices, including background, personal and social expectations, previous educational experience and social role. 3. To suggest an evaluative & analytical research framework needed to determine the impact of the product. 4. The influence on choice of a number of variables such as age, gender, ethnicity and social class. 5. To find out the nature and extent of possible influences on choice of available provision, institutional advertising and marketing. 6. To analyse the level of consumer satisfaction with the services rendered by the company. 7. To find out whether they are satisfied with the quality being maintained.

8. Getting suggestion regarding improving the quality of the product. 9. To find out what factors led them to choose this product. 10. From what source did they came to know about the product. 11. Whether they acquired the product by themselves or by other suggestions. 12.To portray accurately the characteristics of a particular individual or group such as income, age etc.

SCOPE OF RESEARCH :

The results of this study are significant in various respects. First, from the findings it is possible to reduce gaps in between marketer and consumer. Second, certain factors clearly call for further research such as behavioral interventions. Third and most important, the varying approaches and the experiences being applied in the different product development programs can be disseminated Marketing sector is still in developing stage in India, but there are many companies, which have

got a very good name at international level. Again the lower cost of product in India is able to attract more and more people to become a permanent costumer. People day by day are becoming more and more aware about the fact that they are far away of the standard. They can very well judge the standard of the company and the quality of the product being maintained by the company, again, they are also able to suggest measure regarding improving the quality of the product. The customers are the king of the market. So its the obligation of the company to provide high level of satisfaction to the customers and also to give due regards to their suggestions to attain to their expectation. `

The interviewers were limited in respect to time. This constrained the scope and breadth of the study, and the number of questions that could be assessed within the time limits

Researcher met the problem of handling interviewees due to lake of experience Another problem was that some people were suspicious about the survey and they refused to disclose their identity and answering the questions.The biasness and hesitation of the respondents in giving the answers to certain questions. As most of the interviewees are not familiar with such type of market surveys, the researcher found it difficult to motivate the sample for spending time with them in an unbiased way towards the survey. Many consumers are not able to answer as they find it difficult to talk due to insufficient information gained by them but also they are using the product consistently. Researcher is a student and also pursuing his M.B.A. programme, thus he has taken sample size as per scientific method of calculation. But the whole sample could not be interviewed due to time constraint. Despite the above mentioned difficulties and limitations, at most care has been taken while conducting the research work with perfection.

Literature Review

Literature Review

Consumer:

Consumers refers to individuals or households that purchase and use goods and services generated within the economy. Consumer in economics and marketing: In free market economics, consumers dictate what goods are produced and are generally considered the center of economic activity. Individuals consumption of g oods and services is primarily linked to Typically when businesspeople and economists talk of consumers they are talking about person as consumer, an aggregated commodity item with little individuality other than that expressed in the buy/not-buy decision. Instead of generating broad demographic profile and psychographic profiles of market segments, marketers are engaging in personalized marketing, permission marketing, and mass customization.

Consumer behavior:

Consumer behavior is the study of when, why, how, and where people do or do not buy products. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. Marketing concept start with the consumer needs and behavior in meeting these needs, Every action of a person is based on its needs. The real problem is to learn what factor a customer takes in to consideration when he chooses a particular brand. Such a study is concern with consumer behavior. Consumer or buyer behavior is that subset of human behavior which is concerned with decisions and acts of individuals in purchasing and using the products. Consumer behavior is a

subset of customer behavior is concerned with decision that lead of to the act of purchase.

Consumer Perception:

In psychology and the cognitive sciences, perception is the process of acquiring, interpreting, selecting, and organizing sensory information. The word perception comes from the Latin capere, meaning to take the prefix per meaning completely. Methods of studying perception range from essentially biological or physiological approaches, through psychological approaches through the philosophy of mind and in empiricist epistemology, such as that of David Hume, John Locke, George Berkeley, or as in Merleau Pontys affirmation of perception as the basis of all science and knowledge.

Perception in reality:

Many philosophers contend that perception consists of ones interpretation of the world, but as commonality of perception trends towards 100% perception transmorgrifies into reality. Case in point: the sky is blue-reality, now imagine everyone but you perceived the sky to be yellow. The reality would then become the sky is yellow. Thus reality is merely a popular consensus of perception. All things in the universe are understood as received through the various filters of human understanding and thus are perceptions of reality. What we commonly refer to as reality is, in fact, merely an agreed upon perception.

In objectivist philosophy, sensations are not retained in memory but the object of perception is, Perceptions not sensations are selfevident givens. Epistemology in philosophy is to verify the nature of the perception. To do this, one is first aware of an entity. The verification

process makes an identity of it by making measurements, i.e. automatic comparisons. Example: you sense something(entity) that has four legs and a large flat surface (epistemological measurements). Then you compare it to other things of similar appearance and decide it is a table. Cognition (perception) and measurement (four legs; large flat top) are the primary elements of consciousness. The mental integration of two or more percepts create a concept. See Any Rand.

Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic research for pertinent information on a specific topic. In fact, Research is an art of scientific investigation. Research can be defined as logical and systematized application of the fundamentals of science to the general and overall questions of a study, and scientific techniques which provide precise tools, and specific procedures and technical, rather than philosophical means for getting and ordering the data prior to their logical and manipulation.

Research Design:

In case of hypothesis testing research study: Whose studies were the researcher test the hypothesis of casual relationship between variable. Such study require problem that will not only reduce bias but also increase reliabilities and will permit drawing inferences about casualties. Usually experiment meets the design.

The effort made in this study is backed by certain reasonable aims. The main aim of this research study is to know the consumer perception about the product & to have a gainful knowledge about the research study which would be helpful in preparing the summer training project report. Another purpose of research is to discover answers questions through the application of scientific procedures. The aim of research is to find out the truth which is hidden and which has not been discovered as yet.

The data pertaining to the present study has been collected from primary sources only, with a view to analyse their satisfaction level regarding the quality of the product & the services provided by the company to get the consumers valuable suggestion to improve thereon. The primary data has been collected by conducting a survey with the help of a structured questionnaire. The information collected is first and original in character.

RESEARCH METHODOLOGY

Sampling Method:

In statistics, a simple random sample is a group of subjects (a sample) chosen from a large group (a population). Each subject from the population is chosen randomly and entirely by chance, such that each subject has the same probability of being chosen at any stage during the sampling process. This process and technique is known as Simple Random Sampling, and should not be confused with Random Sampling. In small populations such sampling is typically done without replacement, i.e. one deliberately avoids choosing any member of the population more than once. An unbiased random selection of subjects is important so that in the long run, the sample represents the population. However, this does not guarantee that a particular sample is a perfect representation of the population. Simple random sampling merely allows one to draw

externally valid conclusions about the entire population based on the sample. Although simple random sampling can be conducted with replacement instead, this is less common and would normally be described more fully as simple random sampling with replacement. Conceptually, simple random sampling is the simplest of the probability sampling techniques. It requires a complete sampling frame, which may not be available or feasible to construct for large populations. Even if a complete frame is available, more efficient approaches may be possible if other useful information is available about the units in the population.

Research Problem:

In research problem the first and foremost step happens to be that of selecting and properly defining a research problem. Research problem in general refers to some difficulty, which a researcher experience in the context of either a theoretical or practical

situation and want to obtain a solution for the same. My research problem is with regards to rural areas and brand implementation, which help in improving status of the company in different area. With regard to brand, brand implementation in rural areas is one of biggest problem facing by different company. Maximum people in rural area are having low perception idea toward new brand technology. My research objective is to implement perception qualities in rural area through different sources i.e. through advertising, satisfaction etc.

METHODOLOGIES :

CHI-SQUARE DISTRIBUTION :

A chi-square test (also chi-squared or 2 test) is any statistical hypothesis test in which the sampling distribution of the test statistic is a chisquare distribution when the null hypothesis is true, or any in which this is asymptotically true, meaning that the sampling distribution (if the null hypothesis is true) can be made to approximate a chi-square distribution as closely as desired by making the sample size large enough. If X are k independent, normally distributed random variables with mean 0 and variance 1, then the random variable

chi-square

The chi-square distribution has one parameter: k a positive integer that specifies the number of degrees of freedom(i.e. the number of Xi)

The chi-square distribution is a special case of gamma distribution. The best-known situations in which the chi-square distribution is used are the common chi-square tests for goodness of an observed distribution to a theoretical one, and of the independence of two criteria of classification of qualitative data. However, many other statistical tests lead to a use of this distribution. One is Friedmans analysis of variance by ranks.

Characterization:

The probability density function of the chi-square is

where x 0 and f(x;k) = 0 for x 0. here r denotes the Gamma function. Its cumulative distribution function is

Tables of this distribution- usually in its cumulative form are widely available and the

Properties :

If p independent linear homogeneous constraints are imposed on these variables, the distribution of X conditional on these constraints is kp, justifying the term degrees of freedom. The characteristics of the Chi-square distribution is

(t;k)= (1 2it)

-k/2

The chi-square distribution has numerous applications in inferential statistics, for instance in chi-square tests and in estimating variances. It enters the problem of estimating the mean of a normally distributed population and the problem of estimating the slope of a regression line via its role in Students t-distribution. It enters all

analysis of variance problems via its role in the Fdistribution, which is the distribution of the ratio of two independent chi-squared random variables divided by their respective degrees of freedom.

If X ~ k, then as k tends to infinity, the distribution of X tends to normality. However, the tendency is slow (the skewness is the kurtosis is 12 / k) and two transformations are commonly considered, each of which approaches normality faster than X itself: Fisher showed that is approximately normally distributed with mean and unit variance.

Wilson and Hilferty showed in 1931 that is approximately normally distributed with mean 1-2 / (9k) and variance 2 / (9k).

The expected value of a random variable having chi-square distribution with k degrees of freedom is k and the variance is 2k. The median is given approximately by

In statistics, analysis of variance (ANOVA) is a collection of statistical models, and their associated procedures, in which the observed variance is partitioned into components due ANOVA with one type of treatment at different levels, ( if the treatment levels are quantitative and the effects are linear, a linear regression analysis may be appropriate.) SSTotal = SSError + SSTreatments. The number of degrees of freedom (abbreviated df) can be partitioned in a similar way and

specifies the chi-square distribution describes the associated sums of squares. dfTotal = df

Error

which

+ dfTreatments

Degrees of freedom:

Degrees of freedom indicate the effective number of observations which contribute to the sum of squares in an ANOVA, the number of observations minus the number of linear constraints in the data. The degrees of freedom are the numbers of participants (for each group) minus 1. This removes the error otherwise produced by the differences in variance of such groups to account for the difference in sample and population variance.

Overview:

There are three conceptual classes of such models:

Fixed-effects model assumes that the data from normal populations which may differ only in their means. (Model 1) Random-effects modes assume that the data describes a hierarchy of different populations whose differences are constrained by the hierarchy (Model 2) Mixed effects models describe situations where both fixed and random effects are present.(Model 3) In practice, there are several types of ANOVA depending on the number of treatments and the way they are applied to the subjects in the experiments:

One-way ANOVA is used to test for differences among three or more independent groups. One-way ANOVA for repeated measures is used when the subjects are subjected to repeated measures; this means that the same subjects are used for each treatment. Note that this method can be subject to carryover effects. Factorial ANOVA is used when the experimenter wants to study the effects of two or more treatment variables. The most commonly used type of factorial ANOVA is the 2x2 (read: two by two) design, where there are two independent variables and each variable has two levels or distinct values.

Factorial ANOVA can also be multi-level such as 3x3, etc. or higher order such as 2x2x2, etc. but analyses with higher numbers of factors are rarely done because the calculations are lengthy and the results are hard to interpret. When one wishes to test two or more independent groups subjecting the subjects to repeated measures, one may perform a factorial Mixed-Design ANOVA, in which one factor is independent and the other is repeated measures. This is a type of mixed effect model. Multivariate analysis of variance (MANOVA) is used when there is more than one dependent variable.

Models:

Fixed-effects model: The fixed-effects model of analysis of variance applies to situations in which the experimenter has subjected his experimental material to several treatments, each of which affects only the mean of the underlying normal distribution of the response variable.

Random-effects model: Random effects models are used to describe situations in which incomparable differences in experimental material occur. The simplest example is that of estimating the unknown mean of a population whose individuals differ from each other. In this case, the variation between individuals is confounded with that of the observing instrument. Assumptions Independence of cases this is a requirement of the design. Scale of measurement the\dependent variable is interval or ratio. Normality the distributions in each of the groups are normal (use the KolmogorovSmirnov and Shapiro-Wilk normality tests to test it). Some say that the F-test is extremely non-robust to deviations from normality (lindman, 1974) while others say the opposite (Ferguson & Takane 2005: 261-2). Homogeneity of variances the variance of data in groups should be the same (use Levenes test for homogeneity of variances).

Logic of ANOVA :

The fundamental technique is a partitioning of the sum of squares into components related to the effects in the model used. For example, we show the model for a simplified Helsel, D.R. and R.M. Hirsch, 2002. Statistical Methods in Water Resources: Techniques of Water Resources Investigations, Book 4, chapter A3. U.S. Geological Survey. 522 pages. Seaman, J.W. Walls\, S.C., Wide, S.E. and Jaeger, R.G.(1994) Caveat emptor: rank transform methods and interactions. Trends Ecol. Evol. 9, 261-263.

HYPOTHESIS TESTING:

One may be faced with the problem of making a definite decision with respect to an uncertain hypothesis which is known only through its observable consequences. A statistical hypothesis test , or more briefly, hypothesis test, is an algorithm to state the alternative (for or

against the hypothesis) which minimizes certain risks. This article describes the commonly used frequents treatment of hypothesis testing. From the Bayesian point of view, it is appropriate to treat hypothesis testing as a special case of normative decision theory (specifically a model selection problem) and it is possible to accumulate evidence in favor of (or against) a hypothesis using concepts such as likelihood ratios known as Bayes factors. There are several preparations we make before we observe the data. 1.The hypothesis must be stated in mathematical/statistical terms that make it possible to calculate the probability of possible samples assuming the hypothesis is correct. For example: The mean response to treatment being tested is equal to the mean response to the placebo in the control group. Both responses have the normal distribution with this unknown mean and the same known standard deviation (value) 2. A test statistic must be chosen that will summarize the information in the sample that is relevant to the hypothesis. Such a statistic is known as a sufficient statistic. In the

3.

example given above, it might be the numerical difference between the two sample means, m1 m2. The distribution of the test statistic is used to calculate the probability sets of possible values (usually an interval or union of intervals). In this example, the difference between sample means would have a normal distribution with a standard deviation equal to the common standard deviation times the factor

4.Among all the sets of possible values, we must choose one that we think represents the most extreme evidence against the hypothesis. That is called the critical region of the test statistic. The probability of the test statistic falling in the critical region when the hypothesis is correct is called the alpha value (or size) of the test. 5. The probability that a sample falls in the critical region when the parameter is , where is for the alternative hypothesis, is called the power of the test at . The power function of a critical region is the function that maps v to the power of . After the data is available, the test statistic is calculated and we determine whether it is inside the critical region.

If the test statistic is inside the critical region, then our conclusion is one of the following: 1.The hypothesis is incorrect, therefore reject the null hypothesis. (Therefore the critical region is sometimes called the rejection region, while its complement is the acceptance region.) 2.An event of probability less than or equal to alpha has occurred. The researcher has to choose between these logical alternatives. In the example we would say: the observed response to treatment is statistically significant. If the test statistic is outside the critical region, the only conclusion is that There is not enough evidence to reject the hypothesis. This is not the same as evidence in favor of the hypothesis. That we cannot obtain using these arguments, since lack of evidence against a hypothesis is not evidence for it. On this basis statistical research progresses by eliminating error, not by finding the truth.

6 2

7 1

8 3

9 1

10 3

Can say that the variance of the distribution of consumption of Amul ice cream by all respondent from which the above sample of 10 respondents was drawn is equal to 2 pieces. Going to test it at 5 percent and 1 percent level of significance.

Solution: First of I have to work out the variance of the sample data or s2 and the same has been worked out as under.

Sl.no.

xi(No of pieces) 1 3 1 2 3 2 2 3 1 3

(Xi-X)

(Xi-X)2

1 2 3 4 5 6 7 8 9 10 n=10

1 -1 1 0 -1 0 0 -1 1 -1

1 1 1 0 1 0 0 1 1 1 (Xi-X)2=7

s=(Xi-X)2/n-1=7/10-1=0.88

or s2=0.77

Let the null hypothesis be H0: p2= s2 , in order to test this hypothesis, I work out the value as under.

= s2/ p2(n-1)

= 0.77/2(10-1)

= 0.77/2(9)

= 0.042

Degrees of freedom in the given case is (n1)=(10-1)=9 At 5 percent level of significance the table value of =16.92 and at 1 percent level of significance, it is 21.67 for 9 degree of freedom and both this are greater than the calculated value of which is 0.042 Hence I accept the null hypothesis and conclude that the variance of the given distribution can be taken as 2 pieces at 5% as also at 1% of significance. In other words, the sample can be said to have been taken from a population with variance 2 pieces.

2. As being a research worker I have classified some people (those who are eating Amul ice cream) on basis of area sampling studies using two types of sampling method. The table given shows the data obtained during the research work.

Total

30 60 10 40 40 100

B Total

Solution: let us take the hypothesis that the both sampling techniques are correct. There is no any defect in any type of sampling. This being so, the expectation of A type of sampling classifying the people in:

(1)

(2)

(3)

Similarly the expectation of B type of sampling, classifying the people in: (1) Poor income group=40*30/100=12

(2)

(3)

Oij- Eij

-8 6 -2 8 -6 -2

Degrees of freedom=(c-1)(r-1)=(3-1)(2-1)=2

The table value of for 2 degrees of freedom at 5% level of significance is 5.991. the calculated value of is much higher than this table value which means that the calculated value has not be said to have arisen just because of chance. It is significant. Hence the hypothesis does not hold good. This means both sample techniques are not correctly chosen. Naturally, then the one sampling tech. Must be superior than that of other. 3. Spending of money towards Amul ice cream per day by 10 respondents are as follows Sl.no. Rs. 1 2 3 4 5 6 2 1 2 8 7 8 9 10 18

22 1 18 1 8 8

22 22 2 2

The revenue earned by Amul ice cream per day on an average is Rs.45. Is it true or not?

Solution: The null hypothesis is such that the revenue earned per day is not Rs. 20 (on an avg.). The alternative hypothesis is such that the revenue earned is Rs.20.

Sl.no.

Rupee s Oij

Eij

1 2 3 4 5 6 7 8 9 10

23 18 18 18 23 18 23 23 23 18

20 20 20 20 20 20 20 20 20 20

3 -2 -2 -2 3 -3 3 3 3 -2

9 4 4 4 9 9 9 9 9 4

9/20 4/20 4/20 4/20 9/20 9/20 9/20 9/20 9/20 4/20

=3.5

The table value of for 9 degrees of freedom at 5% level of significance is 16.92. So the calculated value is less than the tabulated value. So the null hypothesis is accepted. Therefore the revenue earned by Amul ice cream per day in not 20 rupees,

Comments:

Today, customer is the King of the market. He is the one, who is to decide what should be served to him, whether it may be a product or service. To survive in todays competitive market, one has to improve its service quality and also specialize its

services according to the changing needs of the customer. Thats why many companies ,now a days, are setting up grievance cells, feedback mechanism. Problem resolution departments, customer care services and again some are also hiring agencies for conducting market survey to know Consumers percepton about the company, companys products and services. One has to devise its products and/or services according to the costumers needs and desires. Today, marketing sector is crowded with too many big player. They are consistently working on improving their service quality and also observing the market & consumer behavior to specialize their service accordingly. It is said that when a company knows the customers varying needs & desires and having a mechanism to study the changes, half a work is done. Then it can very well formulate his strategy to spread into the market. Again, when he is up to date, he is obviously in an advantageous position than his competitors. To keep pace with the change, one has to work consistently and continuously. Advantages are that it is free of classification error, and it requires minimum advance knowledge of the population. It best suits situations where not much information is available about the population and data collection can be efficiently conducted on randomly distributed items. If these condition are neither false nor true,

Suggestions:

The company should market its product in better and convenient way so that it is easily acceptable to the consumers. The company should give priority to the quality of the product. The price of the product should be reasonable to its quality. The company should make available the product in different fragrance Some of the suggestions may not be feasible to execute. But efforts should be made from now, so that the company will grow in the right direction. Research in common parlance refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information of a specific investigation. Research refers to the systematic method consisting of enunciation the problem formulating a hypothesis, collecting the fact or data, analyzing the fact and reaching certain conclusion.

The costumer is given the right to give its suggestions and also comments on what is served to him. Also, its given utmost importance to implement these suggestions to make changes accordingly. One can never satisfy its customers fully, there will be some complaint always, but one should continuously work towards minimizing the number of complaints, so that it will be able to meet the expectations of maximum number of customers. So it is a continuous and long process. Consistent and steady effort only can do the job. Its the prerequisite for any marketer to know the trends of the market and for this; one has to have constant observation of the market dynamics.

BIBLIOGRAPHY

Kothari C.R, Research Methodology. New Age Publication, 2002 2.V.S. Ramsway and S. Namakimari, Marketing Management, Macmillan India, New Delhi2004

1.

3.Kotler Philip, Marketing Management, Prentice Hall of India, New Delh-1997 4. www.wikipedia.com 5. www.scribd.com 6.www.google.com

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