A Report of Consumer behaviour

8/12/2019 A Report of Consumer behaviour

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SERIALNO. TOPIC NAME

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ABSTRACT

LITERATURE REVIEW

OBJECTIVES

RESEARCH AND METHODOLOGY

RESULTS AND DISCUSSIONS

ONE WAY ANOVA TEST

CONCLUSION

REFERENCE


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CERTIFICATE

I hereby certify that the work which is being presented in the Project Report entitled A

Study of Consumer Perception Towards Fast Food Industry in NCRin partial fulfillment of

the requirements for the internal assessment and submitted to IMS Ghaziabad is anauthentic record of our own work carried under the supervision of Dr.Vijay Pandey.

The matter presented in this report has not been submitted by us for the award of any

other degree elsewhere.

Anuj Kunar Gupta(BM-013014)

Mona Singh (BM-013040)

Monika giri (BM-013041)

This is to certify that the above statement made by the candidate is correct to the best of

my knowledge.

Date:

DR. Vijay Pandey.

ASSOCIATE PROFESSOR


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IMS GHAZIABABD

ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of the work would

be incomplete unless we mention the people, as an expression of gratitude, who made it

possible and whose constant guidance and encouragement served as a beacon of light and

crowned our efforts with success. This report would have been impossible but for the

support and guidance that I received from various people at different stages of the project.

Our sincere thanks to our Guide Dr. Vijay Kumar Pandey for his excellent guidance,

encouragement and patience has made possible the successful completion of this project.

Anuj Kumar Gupta BM-013014

Mona Singh BM-013040

Monika Giri BM-013041


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Abstract

Food diversity in India is an implicit characteristic of Indias diversified culture consisting

of different regions and states within. Traditionally, Indians like to have home-cooked meals

a concept supported religiously as well as individually.

However, with times due to increasing awareness and influence of western culture, there is

a slight shift in food consumption patterns among urban Indian families. It started with

eating outside and moved on to accepting a wide variety of delicacies from world-over.

Liberalization of the Indian economy in the early 1990s and the subsequent entry of new

players set a significant change in lifestyles and the food tastes of Indians.

Fast food is one which gained acceptance of Indian palate after the multinational fast food

players adapted the basic Indian food requirements viz. vegetarian meals and selected non-vegetarian options excluding beef and pork totally from their menu.

Multinational fast food outlets initially faced protests and non-acceptance from Indian

consumers. This was due to primary perception that these fast food players serve only

chicken and do not serve vegetarian meals. In addition, fast food is perceived expensive

besides being out-of-way meals in Indian culture. Today, fast food industry is getting

adapted to Indian food requirements and is growing in India. It is gaining acceptance

primarily from Indian youth and younger generations and is becoming part of life. Keepingin view the Indian habits and changing preferences towards food consumption, this study

has its focus to understand the factors affecting the perception of Indian youth, in the age

group of 20-30 years, towards consumption of fast food as well as towards making choice

of fast food outlets.


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Literature review

Fast food industry in India

According to worldwatch.org, Indias fast-food industry[4] is growing by 40 percent a year

and supposed to generate over a billion dollars in sales in 2005 as per their estimates.

Before the entry of multinational fast food outlets, Nirulas was a popular domestic fast

food provider for eating-out. Nirulas started with ice-cream parlours and later moved onthe range of fast food including burgers, pizzas, sandwiches etc.

Established in 1934, Nirulas today is a diversified group having a chain of Elegant Business

Hotels, Waiter Service Restaurants, Family Style Restaurants, Ice Cream Parlours, Pastry

Shops and Food Processing Plants in India. The chain with over 60 outlets operating in fivestates successfully caters to the Indian palate of over 50,000 guest everyday for over 70

years[5].

Wimpy was another fast food provider besides Nirulas in Indian market. Wimpy was the

only multinational fast food outlet in India before 1990s with one outlet in New Delhi. In

the initial years of its operations, Wimpy used to be visited by foreigners in India. Indians

were occasional visitors. Today Wimpy has 8 outlets in the capital city New Delhi and it is

expanding its menu with Indian dishes with a view to attract Indian consumer.

After the liberalization policy that came in force in 1991, fast food industry grown in

India as multinational fast food providers have set up their business either jointly with

Indian partners or independently. McDonalds signed two joint ventures one with Amit

Jatia and another one with Vikram Bakshi in April 1995. The first outlet was opened in NewDelhi. It has 50 outlets in North India and 76 in total all over India. It aims for 100 outlets by

the end of 2006[6].


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In 1995, Kentucky Fried Chicken (KFC) also entered the Indian market and opened its first

outlet in Delhi. In 1996, Dominos set up base in India by entering into a long-term

franchisee agreement with the Bhartia Brothers who had businesses in chemicals and

fertilizers. By 2000, Dominos had presence in all the major cities and towns in India.

Dominos had grown from one outlet in 1995 to 101 outlets in April 2001. Pizza Hut enteredIndia in June 1996 with its first outlet in Bangalore. Initially,the company operated

company-owned outlets and then moved on the franchisee owned restaurants.

McDonalds, Dominos, Pizza Hut and Nirulas are the most popular and frequently visited

fast food outlets. KFC has limited outlets and has faced number of problems since entry in

India. Besides these, there are Pizza Express and Pizza Corner of which are not so popular.

With changing life style and aggressive marketing by fast food outlets, fast food is also

becoming popular in small towns; therefore, success of existing fast food outlets and entry

of more is inevitable (Gupta, 2003). Fast food and consumption patterns According to the

findings of the recent online survey from AC Nielson[7, 8] India being at the seventh place,

is among the top ten markets for weekly fast food consumption among the countries of

Asia-Pacific region. Over 70 per cent of urban Indians consume food from take-away

restaurants once a month or more frequently. Survey indicates that Pizza Hut is the most

preferred fast food outlet in India. Identifying the drivers for preference of one-brand overanother, the survey results indicate that Indians (66 percent) are amongst the consumers

who consider hygiene and cleanliness their most important criterion for selection. A total of

24 per cent of Indians use the quality of BFJ 109,2184service as a decision making criterion

to purchase a fast food brandsoffering and 22 per cent rely on their perception of whether

a take-away brand offers them healthy food options.

Kara et al. (1995) has presented the consumers perceptions of and preferences for fast-

food restaurants in the US and Canada. According to their study, the consumers in the age

of 12 to 24 years look for variety, price, delivery service and location in America and for

price and novelties in Canada. In the age group of 46 years to above 55 years cleanliness,

nutritional value, quality and taste are considered by Americans and preference is given to

nutritional value and seating capacity by Canadians in identifying fast food restaurants. In

the middle age group of 25 to 45 years, Americans preferred for speed and friendly

personnel whereas Canadians looked for speed, quality and service. Brown et al. (2000)

emphasized the need for nutritional awareness and fast food preferences of young


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consumers during adolescent years. Davies and Smith (2004) have analyzed the importance

of nutritional values of fast food and also information printed/disclosed by the fast food

providers in London.

In addition to the factors considered for choosing a fast food outlet, there are research

studies towards the nutritional value of fast food. A survey of more than 9,000 consumers

nationwide in US has shown that about 25 percent of those who eat fast foods and drink

sugary, carbonated soft drinks generally consume more calories, fats, carbohydrates, added

sugars and proteins than those who do not (Bowman, 2005).

According to the study of McNeal et al. (1980), respondents felt that meals were

moderately nutritious and a good food buy, but they were fattening and contained harmful

additives. These findings further indicate that although the consumers perceive the

nutritional aspects of fast food meals to be important, they often ignore the aspects in

practice. Adams (2005) paper outlines the bases for establishing fast food industry

responsible for obesity as articulated in litigation against fast food chains in US.

In Indian context, there is high concern towards health in twenty-first century. There are

health related articles in daily newspapers, and health shows on television. There are

special health related magazines that are now very popular. Health related articles do

mention to consume more fruits, vegetables, water and to consume less or nil of junk food

including fast food being high on fat and calories. Recent news article by Barker (2006)

indicates that Indians are facing the problem of obesity and among kinds of foodfast food

is one of the reasons for the same. However, there is gap of a particular research in Indian

context to have a link between the health problems and fast food consumption. In future,

genetically modified food may take the place of fast food of today (Onyango et al., 2004;

Sharma, 2005).


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Objectives of the study

To identify the factors affecting the choice of (Indian youth) consumers for fast food in NCR.

To study the consumption pattern towards fast foods particularly with respect to the frequency of

visits and choice of fast food outlets.

To identify the impact of cleanness and nutritional value of fast foods on consumer purchase

decision.

To study the consumer perceptions about employees behavior at fast food industry in National

Capital Region (NCR), New Delhi.

Research Methodology

The study

The study is exploratory in nature with survey method being used to complete the study.

Sample design

Population:

The population is the Hostel of IMS Ghaziabad.

Sample size:


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49 students

Sampling element:

The sampling element was the individual students of IMS Ghaziabad hostel.

Tools for data collection

Self-designed Questionnaire was used for collecting data for Customer Satisfaction, Customer Perception

towards fast food industry in NCR. The data was collected on a scale of 1 to 5 where 1 indicated strongly

disagreement and 5 indicated strongly agreement with the statement.

Tools for data analysis

Item to total correlation was applied to check the internal consistency of the questionnaires. The measure

was standardized through computation of reliability and validity. Factor analysis was applied to identify the

underlying factors affecting the Consumer Satisfaction, Consumer perception towards fast food industry in

NCR.


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Result and Discussion

Internal Consistency Test

Iterative item to total correlation was applied on the responses received from the hosteller of IMS

Ghaziabad. The items having higher correlation coefficient value than the cut off value (i.e .219528511)

were retained for further analysis. There were 10 items in the study of Customer Satisfaction, Customer

Perception.

Items Computed

Correlationvalue

Consistency/Inconsistency Accepted/Dropped

1.Speed 0.575454542 Consistent Accepted

2. ambiance 0.573808905 Consistent Accepted

3. hot food 0.59072484 Consistent Accepted

4.Better quality 0.553577534 Consistent Accepted

5. Choice 0.449204063 Consistent Accepted

6. Behavior 0.749211863 Consistent Accepted

7.Cleanness 0.53136003 Consistent Accepted

8. Price 0.423498295 Consistent Accepted

9. Taste

preferences

0.570320803 Consistent Accepted

10. preference

of home delivery

0.219528511 Inconsistent Accepted


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Reliability

Reliability tests were applied on the Customer Satisfaction, Customer perception measure using SPSS and

the value of Cronbach Alpha reliability coefficient was found to be 0.813.

Validity Test

Validity of the questionnaire was checked through face validity method and was found to be high.

ANOVA TestH0: Taste preference does not match.

H1: Taste preference do match.

Q4

Sum of Squares df Mean Square F Sig.

Between Groups 10.938 4 2.734 2.533 .053

Within Groups 48.584 45 1.080

Total 59.522 49

Interpretation

Here we find that H0 is accepted that is the taste preferences of consumers do not match.

Reliability

The space server method is used and the covariance matrix is not calculated in the analysis.


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Reliability Statistics

Cronbach's Alpha No of Items

.813 10

Factor Analysis

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .759

Bartlett's Test of Sphericity Approx. Chi-Square 163.523

Df 45

Sig. .000

Communalities

Initial Extraction

Q1 1.000 .702

Q2 1.000 .716

Q3 1.000 .699

Q4 1.000 .573

Q5 1.000 .746

Q6 1.000 .674

Q7 1.000 .574

Q8 1.000 .525

Q9 1.000 .547

Q10 1.000 .702

Extraction Method: Principal Component Analysis.


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Total Variance Explained

Compone

nt

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total % of Variance Cumulative % Total

% of

Variance Cumulative % Total

% of

Variance Cumulative %

1 3.980 39.801 39.801 3.980 39.801 39.801 2.673 26.727 26.727

2 1.453 14.527 54.328 1.453 14.527 54.328 1.911 19.106 45.833

3 1.023 10.231 64.559 1.023 10.231 64.559 1.873 18.726 64.559

4 .965 9.651 74.209

5 .658 6.575 80.784

6 .532 5.315 86.100

7 .478 4.778 90.878

8 .353 3.535 94.412

9 .306 3.061 97.474

10 .253 2.526 100.000

Extraction Method: Principal Component

Analysis.

Component Matrixa

Component

1 2 3

Q6 .813 -.043 -.104

Q2 .705 -.357 .302

Q9 .679 .189 -.224

Q7 .668 -.348 .082

Q5 .658 -.341 -.443

Q4 .649 -.198 -.335

Q3 .641 .533 .067

Q8 .499 .417 .319

Q10 .272 .744 -.272

Q1 .571 -.015 .614

Extraction Method: Principal

Component Analysis.

a. 3 components extracted.


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Component Transformation

Matrix

Compo

nent 1 2 3

1 .730 .428 .533

2 -.413 .897 -.154

3 -.544 -.108 .832


Component Analysis.

Rotation Method: Varimax with

Kaiser Normalization.

Rotated Component Matrixa

Component

1 2 3

Q5 .862 .023 .035

Q4 .738 .136 .098

Q6 .668 .321 .353

Q7 .587 -.035 .478

Q9 .540 .485 .146

Q10 .039 .813 -.196

Q3 .211 .745 .315

Q8 .019 .553 .467

Q1 .089 .165 .817

Q2 .498 -.051 .682


Component Analysis.

Rotation Method: Varimax with Kaiser

Normalization.

a. Rotation converged in 5 iterations.


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Interpretation

The findings of factor analysis have been some underlying factors which give the canonicalco-relation between the questions. The underlying factors here are:-

1. Quality and service factor

2. Home delivery

3. Ambiance factor


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Conclusion

Fast food providers need to focus on the quality and variety of food besides other service

parameters. Study clearly shows that consumers do not visit these outlets primarily for food

but for fun, change and social reasons as they prefer home food over the fast food. This is

an important parameter to focus to have sustainable growth in the times to come. Further,

information about hygiene and nutrition value of the fast food must also be communicated

to the consumers. Thus, in nutshell, there is need to focus on the food contents by the fast

food marketers.

Concluding remarks

Consumer acceptance of food served by fast food outlets is critically important for the

future growth of fast food outlets in any economy. Though the rating of fast food outlets

attributes under study based on mean score is very high but still consumers visit fast food

outlets for fun, change or entertaining their friends but certainly not as a substitute ofhomemade food. Consumers demand more and more information related to hygiene issues

and nutritional values of the products of fast food outlets. Based on the analysis and

results, we can say that with more and more acceptability of fast food outlets and change in

life style, competition among fast food outlets with respect to quality of food and customer

service will be more prominent in the days to come.


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Reference1.http://www.technopak.com/Files/Food_Service_Industry_in_Delhi_NCR.pdf

2.http://www.scribd.com/searchdocuments?query=A+Study+of+Consumer+Perception++

Towards+Fast+Food+Industry+in+NCR

3.Consumer perception about fast food in India: an exploratory studyAnita Goyal and N.P.

Singh,Management Development institute, sukhrali, India, www.emeraldinsight.com.


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Annexure

QUESTIONNNAIRE

Opinion Survey on Astudy of consumer perception Towards Fast Food

Industry in NCR

To indicate your response, please tick ( ) the appropriate circle that most closely represents

your opinion.

1. Age:

o Under 18 years

o 18- 30

o Above 30 years

2. Gender

o Male

o Female

3. Educationo Under Graduate

o Graduate

o Post Graduate

4. Occupation

o Student

o Public Employee

o Private Employee

o House wife

o Self Employed


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Please tick the appropriate box to indicate your response.

1.Strongly Disagree = SD 2.Disagree = D 3.Neutral = N 4.Agree = A 5.Strongly agree

= SA

Given below are some statements about fast food industries.

S.NO. SD D N A SA

1. The speed of getting the ordered food

is fast.

2. Ambiance is quite friendly of this

place.3.

In case of home delivery when foodreaches, it remains hot.4. Better quality of food is provided to

me at this place.5. The fast food ordered by me is

according to my choice.

6. Behavior of employees is polite for me.

7.

The place is clean as my expectations.8. The price of food is affordable

according to me.

9. Food matches the taste preference.

10. I prefer home delivery rather than

eating out at this.


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A Report of Consumer behaviour

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