Today s Consumer and Their Milk Consumption An Empirical Study of Haryana

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1 Today s Consumer and Their Milk Consumption An Empirical Study of Haryana by Dr. Kiran Mor [a] Ms. Savneet Sethia [b] Abstract This present study examines the relationship between consumer values, needs, behavior and their consumption of milk in order to efficiently and effectively position and target the market. The purpose is to identify those motivational factors and variables that influence the consumer to make the purchase decision and types of personal values, motives, emotions and moods directing them. The study was carried out in the four cities of Haryana A sample of 500 respondents was taken for research study and according to the chosen methodological research approach, the quantity data were analyzed by using methods through SPSS software. The study revealed the major factors that influence consumer to purchase such kind of food items; these were quality, brand, health consciousness and other external factors. The findings indicate that personal and interpersonal values are found to be the main motivators behind the purchase of milk products. Among the three types of needs identified to be satisfied through milk products, in order of importance, are health, taste consciousness and environmental needs. Key words: Consumption, consumer values, behavior, Factors and variables. [a] Dr. Kiran Mor Department of Humanities & Social Sciences, NIT, Kurukshetra, India. [b] Ms. Savneet Sethia Research Scholar, Department of Humanities & Social Sciences, NIT, Kurukshetra, India. 1. Introduction In developing countries a growing change in the food market has been observed. This change is basically due to the increase in consumer standards of living. Hence, it is necessary to understands the requirements of different segments of the population in order to identify the different sets of consumer and their consumption preferences.( Babolian and Ab Karim, 2010). Aano bhadraa krathavo yanthu vishwathaha -"Let the noble thoughts come to all from all directions". Page No.1

2 In Haryana, the rural area comprises over 65.21% of total population who plays an important role in economic development. The best result in rural areas due to this economic development have led to more affluent consumer who demand high quality food products (Phuong and Marcus, 2013). People who are more educated in rural areas are now more conscious about the health and wellness related to food choices and diet. Rather it would not be wrong to state that for the food industry a significant transformation has taken place to meet the increasing need and preferences of the consumer. (Hoang,2009) It is important to find the association between personal and environmental factors for milk consumption. For the consumer milk and dairy products are the best biologically utilized sources of calcium which is very important for our body. (Charles, 1992) 2. Review of Literature Recent consumer research suggests that food consumption is becoming increasingly diverse and consumers are growing more concerned about the quality, safety and nutritional content of their food (Phuong et al., 2013; Thang and Popkin, 2004). Regarding factors influencing consumption of dairy products, socio-economic and demographic characteristics (e.g. gender, age, income, education, presence of young children in the household, ethnicity) and level of knowledge influence Vietnamese households expenditure for dairy products (Phuong et al., 2013a). Accordingly, the potential of increasing household s income, higher level of education and greater presence of young children in the household have positive effects on the household s consumption of dairy products. The Vietnamese households expenditure for dairy products is also significantly different across two household groups: rural household and urban household. Aside from the socio-economic and demographic factors discussed above, consumers health consciousness has been found to significantly affect the household s consumption of dairy products. Bonaventure and Wendy (2012), and McGill et al. (2008) found that consumers who perceive dairy products as a good source of nutrients have higher consumption level of dairy products than other consumers. Aano bhadraa krathavo yanthu vishwathaha -"Let the noble thoughts come to all from all directions". Page No.2

3 3. Objectives The present study is an attempt to meet the following objectives: 1) To study the present consumer behavior of today s consumer for consuming the milk and its product in rural areas Haryana. 2) To study the consumer motives for their choices of milk and its product and to explore the changes in consumer behavior in the rural areas of Haryana. 4. Research Design a) Research Methodology For this data has been collected through primary survey and for that structured questionnaire has been designed to get the responses of consumers. Likert s five point scale was used to get the exact responses of consumers which varies from strongly agree (5) to strongly disagree (1). A sample of 500 consumers was studied to get the answer of the question. The below formula was used to get the exact sample size n = Z2(pq)N e2(n-1)+ Z2(pq) The sample size taken for study is more than the required according to the formula. b) Sampling unit: The study aimed at studying the consumer behavior & perception regarding the food products in rural and urban Haryana. Two zones were taken from Haryana according to their administrative block. Thereafter, two districts were chosen in which one was from the high density areas and other from low density area from each zone. Zone I: Ambala and Kaithal Zone II: Panipat and jhajjar Again from these districts two villages were selected randomly for the conduct of the study. Ambala : Aiyema and Kaleron Kaithal: Dumara and Nawalgarh Panipat : Babarpur and Pehladpur Khalita Jhajjar : Rampur and Dawla c) Reliability and validity of questionnaire: A pilot study has been conducted to test the reliability and validity of questionnaire. For reliability croanbach α and for adequacy KMO test were applied. The Aano bhadraa krathavo yanthu vishwathaha -"Let the noble thoughts come to all from all directions". Page No.3

4 questionnaire was reliable because α was more than which means that test was reliable. d) Data sources: Primary as well as secondary source of data collection were applied for the present study. Primary data was taken from survey and secondary was taken from books and other published and unpublished journals. e) Tools & Techniques: Various techniques were used such as Anova, KMO and Bartlets test and factor analysis to find the consumption scenarios of milk for today s consumer. 5. Analytical framework The analytical framework for the said research has been drafted and prepared after examining the factors that influence the consumption of milk which was based on the literature review. (Fig. 1). Among all the factors the two main determinates which influenced the consumption of milk and its product were personal factor like household income, presence, sources of income, education, gender etc. while the second main determinate regarding the same were the milk market, price, purchasing convenience of the product. Aano bhadraa krathavo yanthu vishwathaha -"Let the noble thoughts come to all from all directions". Page No.4

5 6. Test result For the two zones KMO and Bartletts test was calculated. It states that if the value of Bartletts is p<0.05 it is considered as significant for the factor analysis to be considered appropriate. (Tabachnick and Fideall 2007, Malhotra, 2007). Since as displayed in figure below, the significance value Bartletts test of sphericity in this research is p=0.00, exploratory factor analysis is appropriate, depending upon the outcome of KMO sampling adequacy. To test the sampling adequacy, Kaiser Mayer Olkin MSA was calculated which was found to be It is an indicated that the sample is good enough for sampling. Since the KMO sampling adequacy of this research data is higher at and the significance of Bartletts Test of sphercity is appropriate is the result provide adequate evidence to support the appropriate use of Exploratory factor Analysis on the consumer motivation scale items. For generating and reviewing the standards of the data, Principal Component Analysis (PCA) was employed for extracting the data which determines the extracted data, underlying all the factors and the relationship between the number of variables. In order to extract the factors from the data, components that have an eigen value of 1 or more have to be identified from the total variance explained extracted using Principal component analysis. (Pallant, 2007) It is the output of Exploratory factor Analysis process that lists the loading of the each of the scale items. This component matrix is subsequently rotated using varimax rotation to assist interpretation of its results. (Malhotra, 2007) After reviewing both the zones for the consumption of milk and its product with different consuming motives using the Principal Component Analysis extraction method, 2 components were extracted from Zone I. Consumer from Zone I basically believe using branded packed milk due to non risk of synthetic milk and also uses packed milk due to its easy availability. People are now becoming more and more conscious regarding their dietary pattern. Zone II also extracted 2 components before buying or purchasing motives of the consumer for milk and its product. One of of the important factor for the consumer of zone II they prefer to use loose milk due to taste. Also the II factor that was extracted from the research was the preference to use loose milk due to freshness. To test the sample selection bias, the model of milk consumption expenditure was first estimated using the Heckman two-stage procedure. All the variables assumed to affect the milk consumption expenditure of rural households were included in the model and most of them were Aano bhadraa krathavo yanthu vishwathaha -"Let the noble thoughts come to all from all directions". Page No.5

6 found to be significant in the model. Results from the non-nested test indicated that the model can be re-estimated using OLS regression. Linear regression model was estimated in the forms of logarithmic function. Independent variables used in the linear regression model include characteristics of rural households (i.e., income level, number of children and elders in the rural households, main income source), personal characteristics of the rural household head (i.e., age, educational level, gender, perception of milk price and quality/safety) and characteristics of milk market (i.e., convenience to buy milk). As shown in Table 4, the estimated results revealed that the 63.5% changes in mean amount of money of the rural households can be explained by the independent variables in the model. The statistic F is and the probability value showed total significance of fitted regression at 1% level. The considered model is therefore reliable for analysis of the next results. 7. Conclusions and implications The paper identified the personal and environmental factors which were considered influence on milk purchasing decisions of rural households such as whether to buy or not to buy milk and the budget for purchasing. They are household income, main income source of the household, presence of children and elders in rural household, age, gender and educational level of the rural household head, head s perception on milk price and origin, and convenience of the place for buying milk. The impacts of these factors on milk consumption of rural households in Haryana were examined by using a two-step econometric technique. In Haryana, the rural area comprises over 65.21% of total population who plays an important role in economic development. The best result in rural areas due to this economic development has led to more affluent consumer who demands high quality food products. People who are more educated in rural areas are now more conscious about the health and wellness related to food choices and diet. Aano bhadraa krathavo yanthu vishwathaha -"Let the noble thoughts come to all from all directions". Page No.6

7 8. References: 1) Babolian H.R. and Ab Karim M.S. (2010), Factors affecting milk consumption among school children in urban and rural areas of Selangor, Malaysia, International Food Research Journal 17: ) Bonaventure Boniface1 and Wendy J. Umberger (2012), Factors influencing Malaysian consumers consumption of dairy products, Paper for presentation at the 56th AARES annual conference, Fremantle, Western Australia, February7-10, ) Charles, P. (1992), Calcium absorption and calcium bioavailability, Journal of Internal Medicine 231: ) Hoang Vu Linh (2009), Estimation of Food Demand from Household Survey Data in Vietnam, DEPOCEN Working Paper - Series No. 2009/12, Center for Agricultural Policy, Institute of Policy and Strategy for Agriculture and Rural. 5) McGill, C. R., Fulgoni, V. L., DiRienzo, D., Huth, P. J., Kurilich, A. C., and Miller, G. D. (2008), Contribution of dairy products to dietary potassium intake in the United States Population, Journal of the American College of Nutrition, 27(1), ) Marketing Research: An Applied Approach, Naresh K. Malhotra, Dr. David F. Birks, Pearson Education, Limited, ) Phuong, N.V. & Marcus M. (2013), Meat consumption patterns in Vietnam: Effects of household characteristics on pork and poultry consumption, Poster presentation at the 53rd Annual Conference of the German Society of Economic and Social Sciences in Agriculture (GEWISOLA): How much market and how much regulation does sustainable agricultural development need?, Berlin, September 25-27, ) Thang, N. M. and B. M. Popkin (2004), Patterns of food consumption in Vietnam: Effects on socioeconomic groups during an era of economic growth, European Journal of Clinical Nutrition, 58(1): Aano bhadraa krathavo yanthu vishwathaha -"Let the noble thoughts come to all from all directions". Page No.7

8 Annexures Variables Co-efficient t values Significant value Income Children Age Education Gender Household characteristic Price R squared F test No of household 500 Source: Author s calculations on the results of the t test. Component Matrixa,b Component 1 2 I PREFER TO USE LOOSE MILK DUE TO FRESHNESS I PREFER TO USE LOOSE MILK DUE TO TASTE I PREFER TO USE LOOSE MILK DUE TO ADULTERATION I PREFER TO USE LOOSE MILK DUE TO UNSKIMMED I PREFER TO USE BRANDED PACKED MILK DUE TO NON RISK OF SYNTHETIC MILK I PREFER TO USE PACKED MILK DUE TO EASILY AVAILABLE I PREFER TO USE DRY MILK DUE TO ITS EASY STORAGE Extraction Method: Principal Component Analysis. a. 2 components extracted. Aano bhadraa krathavo yanthu vishwathaha -"Let the noble thoughts come to all from all directions". Page No.8

9 Component Matrixa,b Component 1 2 I PREFER TO USE LOOSE MILK DUE TO FRESHNESS I PREFER TO USE LOOSE MILK DUE TO TASTE I PREFER TO USE LOOSE MILK DUE TO ADULTERATION I PREFER TO USE LOOSE MILK DUE TO UNSKIMMED I PREFER TO USE BRANDED PACKED MILK DUE TO NON RISK OF SYNTHETIC MILK I PREFER TO USE PACKED MILK DUE TO EASILY AVAILABLE I PREFER TO USE DRY MILK DUE TO ITS EASY STORAGE Extraction Method: Principal Component Analysis. a. 2 components extracted. b. Only cases for which ZONE = ZONE 2 are used in the analysis phase. Source: author s calculations on the results of the factor analysis Component Matrix a,b Component 1 2 I PREFER TO USE LOOSE MILK DUE TO FRESHNESS I PREFER TO USE LOOSE MILK DUE TO TASTE I PREFER TO USE LOOSE MILK DUE TO ADULTERATION I PREFER TO USE LOOSE MILK DUE TO UNSKIMMED I PREFER TO USE BRANDED PACKED MILK DUE TO NON RISK OF SYNTHETIC MILK I PREFER TO USE PACKED MILK DUE TO EASILY AVAILABLE I PREFER TO USE DRY MILK DUE TO ITS EASY STORAGE Extraction Method: Principal Component Analysis. a. 2 components extracted. b. Only cases for which RESIDENCE TYPE = Rural are used in the analysis phase. Source: author s calculations on the results of the factor analysis Aano bhadraa krathavo yanthu vishwathaha -"Let the noble thoughts come to all from all directions". Page No.9