A Study of Consumer Decision Making While Purchasing Branded Spices in and Around Karad City

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1 The 21 st Century Consumers A Behavioural Perspective Publish by Global Vision Publishing House Edited by M. Ganesh Babu, G. Vani and Dr. N. Panchanatham A Study of Consumer Decision Making While Purchasing Branded Spices in and Around Karad City *M.M. Kumthekar and **A. R. Sane Abstract Today, Indian marketers are focusing on rural markets for various reasons, the foremost being that it represents a large untapped market. For any marketer, the key to success in these markets is to understand the psyche of rural consumers which is characteristic and not similar to the urban market. Therefore, the consumer, the most critical component in the marketing scenario, needs to be studied in depth. The present study is an attempt to identify the consumer psyche in buying spices and identifying the consumer preference towards branded spices in Karad -a semi urban city in district Satara in Maharashtra and the areas around it which represent the rural areas. It also attempts to study the buying behavior demonstrated by rural consumers and identify the most popular branded spices in and around Karad city. INTRODUCTION India has traditionally been known for its spice and culinary herb production. It is one of the largest spice producing and consuming country. Also it is known for its excellent cuisine, it s unique regions of cooking, and a pleasant dining experience. It is famous for distinguished vegetarian dishes. One thing all the regional cuisines of India have in common is its use of spices. Thus spices are the heart of Indian Cuisine. We Indians love to have spicy foods. We have a long history of spices used in medicine and other therapy; spices have taken centre stage in Indian cuisine and household kitchens. Popular variants of Indian spices are Haldi, Dhania, Garam masala, Lal mirch, Methi and many more as everybody s liking e.g. Chana Masala, Sambhar masala, Chicken or Meat Masala etc. The strategic location, climatic conditions, advanced production processes and availability of cheap labour in India makes it advantageous for the producers to ensure large scale production of quality spices and herbs. Due to this Indian Spices have become popular overseas as well. Spice manufacturers have encashed this trend and are exporting these spices to countries like USA, UK, Australia, Canada, Middle East and Asian countries. Major Manufacturers are Pravin Masale, Badshah, MDH Industries, ITC, Everest group. Thus India accounts for nearly 45% in terms of volume and 30% in terms of value in the world spice trade. * Visiting Faculty, Bharati Vidyapeeth Deemed University, Maharashtra. kmedha@live.com ** Lecturer, Bharati Vidyapeeth Deemed University, Maharashtra. amratasanel39@gmail.com

2 116 M.M. Kumthekar and A.R. Sane Objectives of the Study 1. To identify the most common types of branded spices used to cook at home 2. To study the major factors which influence purchasing of the branded spices in and around Karad city. 3. To identify the most popular brand in spices in and around Karad city. 4. To offer meaningful suggestions to Pravin Masale. Hypothesis 1. In rural area, women use homemade masala than branded masala to cook at home. 2. Branded spices are used only for taste than its price. Research Methodology To fulfill the objectives stated earlier, the data necessary for the research work basically was obtained from 50 respondents in and around Karad city. The research type of this study is exploratory and descriptive. Simple random sampling technique was used for collection of data while sample size was 50. Sampling unit i.e. respondents to be interviewed were house wives in and around Karad city. Sources of data collection:the data was collected with the help of primary as well as secondary sources. A questionnaire was prepared to study and evaluate consumer preference towards branded spices in and around Karad city. 1.4 a Primary sources: The primary data for the research work was collected with the help of a structured questionnaire. Personal interviews of respondents were conducted and with the questionnaire supplemented by personal observation. 1.4 b. Secondary sources: The secondary sources such as literature from text books, periodicals, magazines, news papers etc. were obtained by visiting well known libraries and also from websites and company records. DATA ANALYSIS AND INTERPRETATION After the survey all the completed questionnaires were scrutinized and tables, graphs and charts were prepared. Percentages were calculated and inferences were drawn after tabulation of the data collected. To study the consumer preference towards branded spices, respondents were categorized into different age groups, as follows: Table 1: Age group wise analysis SN Age Group No. of Percentage(%) respondents Age group wise chart No. of respondents

3 A Study of Consumer Decision Making While Purchasing Branded The above table indicates that 38% of the respondents were from the age group 20 years to 30 years followed by 30% in the middle aged group of 30 to 40 and 20% belonged to 40 to 50 years, 12% belonged to 50 to 60.The thrust was on the young housewives to understand the trend of buying in the new generation. Table 2: Occupation wise analysis SN Occu- No. of respon- Percenpation dents tage (%) 1. Business Professionals Service House wife % 20% Occupation wise chart 24% 30% Business Profession Service House wives An effort was made to correlate the occupation and the purchasing of branded spice. 30% respondents were professionals followed by 26% who were in service, 24% had their own business while 20% were pure housewives. Table 3: Preference of type of spice: SN Specification No. of Percentage of spices respondents (%) 1. Garam Masala Pickle Masala Sambhar Chat / Tak Masala Kanda Lasun Biryani Kesari Dudh Masala 7 14 Total Specification of spices Garam Masala Pickle Masala Sambhar Chat / Tak Masala Kanda Lasun Biryani Kesari Dudh Masala In this question, a single respondent has opted for more than one option hence the total number of the respondents exceeds 50. It was noted that 36% purchased Garam Masala followed by 30% purchased Kanda Lasun Masala, 28% purchased Pickle Masala, 20% purchased Biryani Masala. 12% purchased Sambhar masala, 10% purchased Chat/ Tak Masala and 14% purchased Kesari Dudh Masala. Thus the most preferred product appeared to be Garam Masala and then Kanda Lasun Masala closely followed by pickle masala.

4 118 M.M. Kumthekar and A.R. Sane Table 4: Identification of the most popular brand: SN Specification No. of Percentage of spices respondents (%) 1. Badshah Bawadekar Kepra Everest Sangam Ambari Katdare Pravin Bedekar Mahila Udyog Any other % Badshah Sangam Bedekar 8% 22% 2% Specification of brand 0% 2% 10% 8% 2% 6% Bawdekar Ambari Mahila Udyog 18% Kepra Katdare Any other Everest Pravin There was a significant difference in the percentage of brands preferred. The highest percent of spices preferred was 22% that of Katdare and Pravin. This was followed by Everest which was preferred by 18% and then brand Bawadekar Masala by 10%. Badshah(2%), Kepra(8%), Sangam(6%), Ambari(2%),Bedekar, Mahila Udyog were preferred by less than 2%. Thus the most preferred brands were Katdare and Pravin. Table 5: Preferred frequency of buying branded spices: SN Frequency No. of Percentage respondents (%) 1. Once in a month Once in 2 month Once/ Twice every year As per requirement % Frequency of buying branded spices 18% 8% 4% Once in a month Once in 2 month Once/ Twice every year As per requirement It was seen that 70% of respondents purchased the spices as per requirement. 18% of respondents purchased spices once a month followed by 8% of them who bought twice a month. Very few i.e. 4% of respondents purchased spices once/ twice every year.

5 A Study of Consumer Decision Making While Purchasing Branded Table 6: Preference of Package size SN Package size No. of Percentage respondents (%) gm gm gm Sachets Preference of package size gm 100 gm 50 gm Sachet No. of respondents 20 From the above table, it is observed that 40% of respondents purchased sachets i.e. to use as per requirement followed by 30% respondents who purchased 50gm branded spices. Very few respondents i.e. 8% purchased 500 gm package size. Table 7: Factors considered while choosing a brand: SN Specification No. of Percentage of brand respondents (%) 1. Availability Quality Taste Price Habit Advertisement Recommendation Convenient package size Total 100 Factors considering while choosing a brand Availability Quality Taste Price Habit Advertiseme nt Recommenda tion Convenient package size As respondents preferred multiple factors while choosing a brand, total number exceeds 50. The most important factor considered while choosing the brand was taste of the spice opted for by 40% closely followed by quality 36%, availability 32%, convenient package size was considered by 30%. 26% respondents chose brands out of habit and 24% considered price also while selecting a brand, advertisement and recommendations were considered by only 14% and 20% respectively. Thus taste and quality are the most crucial factors in selecting branded spice.

6 120 M.M. Kumthekar and A.R. Sane Table 8: Most preferred brand SN Most preferred No. of Percentage brand respondents (%) 1. Badshah Bawadekar Kepra Everest Sangam Ambari Katdare Pravin Bedekar Mahila Udyog Any other % Most preferred brand 8% 0% 24% 10% 8% 0% 6% 18% Badshah Bawdekar Kepra Everest Sangam Ambari Katdare Pravin Bedekar Mahila Udyog Any other It was seen that 26% respondents preferred Pravin masale closely followed by Katdare masale i.e. 24% and then Everest preferred by 18% followed by Bawadekar Masale i.e. 10%. Surprisingly the trend of users of brands seen in Table No 4 is largely reinforced in the above question. The trend and number of respondents preferring a certain brand are same for the three brands Pravin, Katdare, Everest and for others the figures are roughly the same with slight variations of 2% for Mahila Udyog, Badshah and any other. Table 9: Trial of other brands SN Response No. of Percentage respondents (%) 1. Yes No T r y o f o t h e r b r a n d Y e s N o N o. o f re s p o n d e n ts An effort was made to observe whether the customers were loyal towards one brand or their switched their preferences frequently. From the above table it is observed that 52% respondents tried other brands while 42% respondents remained loyal to the same brand. Thus the percentage of respondents who were loyal and the percentage of respondents who were switchers were very nearly the same. Thus the brands face the challenge of converting the switchers to loyal customers.

7 A Study of Consumer Decision Making While Purchasing Branded Table 10: Reasons for trial or non trial of other brands SN Response No. of Percentage respondents (%) 1. Variety Yes Change (Switchers) Lack of availability Specialty of the brand Total Variety Change No Lack of (Loyals) availability Specialty of the brand % of total respondents switched brands.while analyzing the psyche of switchers,it was seen that 54% of these switchers switched the brand for change, 19% for variety and 15% for lack of availability. This last category of respondents can be retained as loyal customers by ensuring the availability of the product. 48% respondents did not try any other brand indicating they were loyal customers. Surprisingly just as the percentage of loyal customers was substantial i.e. (48%), the percentage of switchers was equally large i.e. 52% indicating a need for change rather than habit and variety seeking buying behaviour on the part of consumers while purchasing spices. Hypothesis I The researcher had interviewed 90 respondents amongst whom 50 respondents used branded masala and the remaining 40 respondents used homemade masala. Hypothesis: In rural area, women use homemade masala than branded masala to cook at home Ho: Null hypothesis : In rural area, women do not use homemade masala than branded masala to cook at home. For proving this hypothesis, chi square test is used. Sr. No. Description Preferred Not preferred Total 1. Home made Branded Total

8 T h e t a b l e v a l u e o f χ 122 M.M. Kumthekar and A.R. Sane Applying χ 2 test : O E O-E (O-E) 2 (O-E) 2 /E (O-E) 2 /E 2.22 Thus degree of freedom = (c-1)(r-1) = (2-1) *( 2-1) = 1*1 =1 2 = 3.84 at 5% level of significance. Calculated value of χ 2. is less than that of table value. Therefore the null hypothesis can be accepted. Hence it concluded that In rural area, women do not use home made masala than branded masala to cook at home. It is Type I error. Hypothesis II Hypothesis: Branded spices are used only for taste than its price. Ho : Null hypothesis: Branded spices are not used only for taste than its price. For proving this hypothesis, chi square test is used. Sr. No. Description Preferred Not preferred Total 1. Taste Price Applying χ 2 test : Total O E O-E (O-E) 2 (O-E) 2 /E Thus degree of freedom = (c-1)(r-1) = (2-1) *( 2-1) = 1*1 = 1 (O-E) 2 /E 4

9 A Study of Consumer Decision Making While Purchasing Branded The table value of χ 2 = 3.84 at 5% level of significance. Calculated value of χ 2. is more than that of table value. Therefore the null hypothesis cannot be accepted. Hence it concluded that Branded spices are used only for taste than its price. Suggestions CONCLUSION AND SUGGESTIONS The most preferred product appeared to be Garam Masala and then Kanda Lasun Masala. Majority of respondents preferred Katdare, Pravin closely followed by Everest. Purchasing as per requirement was the most preferred purchasing frequency followed by once a month.. Sachets i.e. low price packs were the most preferred package size. Taste was the prime factor considered while choosing a branded spice followed by quality, availability and then convenient package size. Katdare, Pravin were the most popular brands closely followed by Everest. The percentage of loyal customers was almost equal to the percentage of swithchers. The companies should try to promote varieties of spices other than Garam Masala and Kanda Lasun Masala. Companies should take efforts to induce trial by distribution of free sample sachets. The company should take efforts to convert one time customers to loyal customers by taking conscious efforts to maintain taste and quality and also ensure that the product is never out of stock. Consumer awareness of various varieties of spices should be improved by organizing cooking contests and sponsoring events for housewives. The manufacturers must engage in one to one interaction with housewives through the dealers or wholesalers or retailers. REFERENCES Kothari, C.R. (2005). Research Methodoly, New Age International (p) Limited, Publishers, New Delhi, Reprint. Nair, Suja R. (2008). Consumer behaviour in Indian Perspective, Himalaya Publishing House, Mumbai, Reprint. Raju, M.S. Dominique Xardel, (2007). Consumer Behaviour Concepts, Applications and Cases, Vikas Publishing House Pvt. Ltd., Noida, Third Reprint. Saranavel, P. and Sumathi, S., (2003). Marketing Research &Consumer Behavior, Vikas Publishing House, New Delhi