1

A

PROJECT REPORT

ON

“CONSUMER BEHAVIOUR TOWARDS

CONSUMPTION OF FAST FOOD”

SUBMITTED TO

MATRIX BUSSINESS SCHOOL

(2008-2009)

SUBMITTED BY

Gulab Ch. Sharma

MATRIX BUSINESS SCHOOL

PUNE

2008-2010

2

CERTIFICATE

This is to certify that the FIELD WORK titled

“CONSUMER BEHAVIOR IN CONSUMPTION OF FAST

FOOD”

Is a Bona fide work carried out by Mr. GULAB

CHAND SHARMA student of Master of MARKETING

MANAGEMENT Semester 2nd

of

MATRIX BUSINESS SCHOOL, PUNE.

Internal Guide Director

Dr. Madhuri Shete Dr. J.N. Pol

Date:

Place: Pune College Seal

3

Acknowledgement

A successful project can never be prepared by the single effort or the person to whom

project is assigned , but it also demand the help and guardianship of some conversant

person who helps in the undersigned actively or passively in the completion of successful

project.

With great pleasure I express my gratitude to our director Dr.J.N.Pol and project guide

Prof. Madhuri Shete without their help this would not have been completed. They have

given there precious suggestions and constructive guidance have been indispensable in

the completion of this project work.

I would also like to thank the staff of the Matrix Business School. They have supported

me in this endeavor, and appreciated me in my efforts during my project.

Last but not the least I would also like to thank my friends and all the responded. Who

directly and indirectly supported to me during my project work, without the help of

whom this project would not have been possible.

Gulab Ch. Sharma

4

INDEX

Sr no Title Page No.

1 Executive Summary 5-6

2 Objective and Scope of the Study 7-8

3 Theoritical Background 9

4 Research Methodology 10-12

5 Data analysis and Interpretation 13-23

6 Finding 24-25

7 Limitations 26-27

8 Conclusion 28-29

9 Recommendation 30

10 Annexure 31-32

11 Bibliography 33

5

EXECUTIVE SUMMARY

6

EXECUTIVE SUMMARY

Project Title

“Consumer Behavior in the consumption of fast food”

The study of any subject is made by examining it in an organized fashion. There are three

classes of variables involved in understanding consumer behavior; STIMULUS,

RESPONSE and INTERVENING variables. Stimulus variables, such as advertisements,

products exist in both the individuals’ external environment.

These generate a sensory input to consumers. Response variables are the resulting mental

/ or physical reactions of individuals who are influenced by stimulus variables. For e.g. : -

purchasing a product or forming attitudes about it could be viewed as response variables.

Many of the variables affecting consumers (such as personality, learning, and perceptions

are external situations, motives, and so forth) cannot be directly observed.

A questionnaire was prepared by us in order to conduct market survey. The questionnaire

was based on different parameters to judge and understand the consumer behaviors and

determine the best possible strategies which could be used to attract customers.

The research carried out in this project was descriptive in nature. The study was aimed at

knowing the various eating habits of a consumer.

This project helped in understanding what exactly a customer looks in an eating joint

before entering it. It gave an idea about the essential factors that are required now a day

for an eating joint to attract customers in this competitive world.

We were also given a task to understand the customer eating habits, what a consumer

wants while eating in a restaurant what all a consumer look for and what are their

expectations, how can restaurant owner satisfy the needs and wants of a consumer so that

the consumer may come back.

This project helped us to figure out the different consumer eating behavior and to

understand the overall customer perception of eating in a restaurant as well as their

demand for restaurant.

7

OBJECTIVES & SCOPE OF THE STUDY

8

OBJECTIVES & SCOPE OF THE STUDY

Objective:-

• To analyze consumer behavior towards consumption of fast food.

Scope of the project:-

The market survey has done in fast food restaurants; this project is useful for the

better understanding of the consumer behavior. The project encompasses the various

behavior of customer, their pre and post behavior when they eat. There is also overview

of the consumer’s attraction towards fast food restaurants, mostly consumer perceptions

are changing and most of the consumer now prefers to eat in fast food restaurant. The

project work involves specific guidelines for the restaurant and helps the restaurants to

understand better the consumer behavior in fast food restaurants.

9

Theoritical background

Consumer behavior:-

Consumer behavior is the study on when, why, how, where and what people do or do not

buy products. It blends elements from psychology, sociology, anthropology and

economics. It attempts to understand the buyer decision processes/buyer decision making

process, both individually and in groups.

The study of consumer behavior is the study of how individual makes decision to spend

their available resources (time, money and efforts) on consumption related items.

It studies characters of individual consumers such as demographics, psychographics, 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.

Definition of consumer behavior:

“The decision process and physical activity individuals engage in when evaluating,

acquiring, using or disposing of goods and services”.

The term consumer behavior can be defined “As the behavior that consumer display in

searching for purchasing, using, evaluating and disposing of products, services and ideas

which they expect satisfy their needs.”

10

Research Methodology

11

RESEARCH METHODOLOGY

Research Methodology ill common parlance refers to a search for knowledge. One can

also define also research as a scientific and systematic research for pertinent information

a specific topic. Research is an art of systematic investigation. Some people consider

research as a movement, a movement to the known to the unknown.

According to Clifford Woody: - “Research comprises defining and redefining problems, formulating hypothesis or

suggested solutions, collecting, organizing and evaluating data, making deductions mil

reaching conclusion, and at last carefully testing the conclusion to determine whether

they fit the formulating hypothesis.”

Marketing research is defined as a systematic gathering and analysis of the data

concern with an objective. The whole activity is divided into various parts and after

compilation of that we reach at certain findings, which enable us to marketing decision. It

involves the diagnosis of information needed and the selection of the relevant and inter-

related variables.

Research Plan: -

Research Approach: SURVEY METHOD

Primary Source

Primary data consists of original information gathered for specific purpose. The primary

data is collected through questionnaire. The questionnaire is through common instrument

collecting primary collection. I collected the data through questionnaire from different

small eating joints.

Research Instrument

The research instruments used for collecting the primary data were the questionnaire.

Questionnaire

The questionnaire was carefully developed tested and debugged before they were

administered on a large scale. Each questions contributed to the research objective here

questionnaire is structured types means there are concrete, definite and predetermined

questions.

The questions are presented are exactly same wording and in the same an order to all

respondents. The questionnaire had a mix type of open ended, closed ended and multiple

choice questions. The questions were limited in numbers simple direct and unbiased

technology was adopted.

12

Data Source:

Primary:

� The data was collected through questionnaire comprising of 17 questions.

Secondary:

� The data was collected through:

Data Collection Instrument:

� Questionnaire

Sampling Procedure:

1. Sample Unit : Consumer visited Small Eating Joints

2. Sample Size : 50 Respondents

3. Sampling Method : Random Sampling Method

13

Question no.1

1. Do you visit restaurants?

Visit Restaurants Yes No

Respondents (in %) 100% 0%

Respondents (in No.) 50% 0

Respondents (in %)

0%

20%

40%

60%

80%

100%

120%

Yes No

Respondents (in %)

Interpretation:-

� All the candidates interviewed visited small eating joints.

14

Question no.2

2. Your suitable timing for visiting food joint?

Suitable timing Morning Afternoon Evening Late Night

Respondents

(in %)

10% 20% 50% 30%

Respondents

(in No.)

5 10 25 15

Suitable time of visiting

Respondents (in %)

10%

20%

50%

30%

Morning

Afternoon

Evening

Late Night

Interpretation:-

� Maximum respondents are visiting food joints in evening and late night because at day time

they have a busy schedule.

15

Question no. 3

3. You like to visit food joint with?

Visit food with Family Friends Alone

Respondents (in

%)

50% 40% 10%

Respondents (in

No.)

25 20 5

Respondents (in %)

50%40%

10%

Family

Friends

Alone

Interpretation:-

� Humans are social being so they like to visit different restaurants in group.

16

Question no. 4

4. What part of your monthly income you spend in restaurants?

Part of income <10% <15% >15%

Respondents (in

%)

40% 36% 24%

Respondents (in

No.)

20 18 12

Respondents (in %)

40%

36%

24%

<10%

<15%

>15%

Interpretation:-

� Most of respondents are spending approx 15% of their monthly income.

17

Question no. 5

5. How much you spent at a time visiting food joint?

Spent at a time <200 <500 <1000 >1000

Respondents

(in %)

30% 40% 20% 10%

Respondents

(in No.)

15 20 10 5

Respondents (in %)

30%

40%

20%

10%

<200

<500

<1000

>1000

Interpretation:-

� Most of respondents are spending approx 500 rupees at a time visit.

18

Question no. 6

6. Which food joint preferred by you most?

Preferred food

joint

Mc Donald’s Pizza Hut Domino’s Other

Respondents

(in %)

40% 30% 14% 16%

Respondents

(in No.)

20 15 7 8

Respondents (in %)

40%

30%

14%

16%

Mc donalds

Pizza Hut

Domino’s

Other

Interpretation:-

� Most of the respondents are visiting McDonalds because McD has a brand

identity in the minds of consumer as providing cost effective products.

19

Question no.7

7. Favorite cuisine?

Favorite

cuisine

Western junk

food

Chinese

nodules

South Indian Other

Respondents

(in %)

50% 30% 16% 4%

Respondents

(in No.)

25 15 8 2

Respondents (in %)

50%

30%

16%4%

Western junk food

Chinese nodules

South Indian

other

Interpretation:-

� Most of the respondents are selecting western junk food and Chinese nodules as their

favorite cuisine.

20

Question no. 8

8. Your preference for the food joint is due to?

Preference for

food Convenience pricing taste Other

Respondents

(in %)

24% 28% 36% 12%

Respondents

(in No.)

12 14 18 6

Respondents (in %)

24%

28%

36%

12%

Convenience

pricing

taste

Other

Interpretation:-

� Most of the respondents are preferring restaurants due to their provided food taste

and price.

21

Question no. 9

9. Are you satisfied with its pricing?

Satisfied Yes No

Respondents (in %) 80% 20%

Respondents (in No.) 40 10

Respondents (in %)

80%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No

Respondents (in %)

Interpretation:-

� Now days most of restaurants are providing cost effective foods, so mostly

respondents are satisfied with its price.

22

Question no.10

10. Which is the most effective promotional activity for food joints

according to you?

Effective

Promotional

activity

Discount Home delivery Other

Respondents (in

%)

60% 20% 20%

Respondents (in

No.)

30 10 10

Respondents (in %)

60%20%

20%

Discount

Home delivery

Other

Interpretation:-

� Most of the respondents prefer the most effective promotional activity as they are

getting more in fewer prices for discount scheme.

23

Question no.11

11. Are you satisfied with the ambience of your preferred food joint?

Satisfied with the

Ambience

Yes No Little bit

Respondents (in

%)

70% 20% 10%

Respondents (in

No.)

35 10 5

Respondents (in %)

70%

20%

10%

Yes

No

Little bit

Interpretation:-

� Most of the respondents are satisfied with the ambience provided by restaurants

because now days they have well space and services.

24

FINDINGS

25

FINDINGS AND OBSERVATIONS

1. Almost every person contacted or interviewed said that he/she has visited small

eating joints.

2. From analysis we found out that most of the people were affected and attracted

with offers and schemes.

3. It has been found out that most of the people in Pune city visit small eating joints

for refreshment and enjoy.

4. Consumers choose small eating joints because they all want taste change and

economic food.

5. Most of the people who visit small eating joints prefer to spend 15% of their

monthly income and more than 500-1000 Rs at a time eating.

6. Advertising plays a very crucial part in the consumer decision making process.

7. Most of the respondents take on the spot decision of eating different products

because of the various product displays.

8. For most of the respondents quality plays a very important role because most of

the respondents said that they want quality products’ and that’s also one reason

for most of the respondents sticking to particular brands.

9. We can also say that location, variety convenience and economical products are

not the only things which attract the customer but there are some other factors

which play a major role in attracting the customers as mentioned above.

26

LIMITATIONS

27

LIMITATIONS

Time constraint

The allotted time to conduct the survey was 15 days. Therefore it became a bit difficult to

cover the entire city of Pune. However, the key areas were aptly covered.

Availability of data:

Most of the restaurants and eating joints were not in favor of us conducting the survey

inside their premises as it would disturb their customers. ‘Non-willingness of the

respondents to answer the questionnaire was also a hurdle.

Reliability of data:-

Reliability of data always remains a prime concern when humans are surveyed. Mon-

interest, poor understanding, unclear questions, inability to think instantly and customer

biases creeps in apprehensiveness in the minds of the researcher while tabulating and

analyzing the data.

28

CONCLUSION

29

CONCLUSION

Consumer’s behavior is often studied because certain decisions are significantly affected

by their behavior or expected actions. For this reason consumer behavior is said to be

applied discipline.

1. In a general sense, the most important reason for studying consumer behavior is

the significant role it plays in our lives. Much of our time is spent directly in the

market place, eating or engaging in other activities. A large amount of additional

time is spent thinking abut products and services, talking to friends about them,

and seeing or hearing advertisements about them. In addition, the goods people

eat and the manner in which they use them significantly influence how they live

their daily lives. These general concerns alone are enough to justify our study of

consumer behavior. However, many seek to understand the behavior of

consumers for what are thought to be more immediate and tangible reasons.

2. The main reason behind this project was to find out the behavior of the consumer

behavior while eating in small eating joints because most of the population

surveyed preferred to eat at large restaurants and how day by day the consumers

demands are increasing and through this project I came to know that what are the

various behavior of a typical customer who eats in different eating joints.

30

Recommendations

1. Most Suitable timing for customers are evening and late night so customers are

recommended that they hope they will be enjoy better services at that time.

2. Customers visit food joints with group.

3. Most of the people spend 500 rupees at a time visit, so they hope to eat more in

this budget.

4. Western foods (pizzas and burgers) and Chinese nodules are favorite cuisines of

customer’s comparatively Indian cuisine, so food joints have to serve these

cuisines most.

5. Customers face convenience problems, so food joints have to rectify this.

\

31

Annexure

Questionnaires on Consumer Behavior towards

consumption of fast food

1. Name :-

…………………………………………………………………………

………

2. Gender?

a. Male b. Female

3. Age?

a. <15 b. <25 c. >25

4. What is your profession?

a. Working b. Student c. ……….

5. Income (annually)?

a. 1-1.5lakhs b. 1.5-3lakhs c. >3lakhs

6. Do you visit restaurants?

a. Yes b. No

7. How often you visit restaurants?

a. Weekly b. monthly c. occasionally

8. Your suitable timing for visiting fast food restaurant?

a. Morning b. afternoon c. evening d. late night

9. You like to visit food joint with?

a. Family b. friends c. alone

32

10. What part of your income (monthly) you spend in restaurants?

a. <10% b. <15% c. >15%

11. How much you spent at a time visiting fast food restaurant ?

a. <200 b. <500 c. <1000 d. >1000

12. Which fast food restaurant preferred by you most?

a. McDonald’s b. Pizza Hut c. Domino’s d. Other

13. Favorite cuisine?

a. Western junk food b. Chinese nodules c. South Indian d.

other

14. Your preference for the fast food restaurant is due to?

a. Convenience b. pricing c. taste d. other

15. Are you satisfied with its pricing?

a. Yes b. No

16. Which is the most effective promotional activity for restaurants

according to you?

a. Discount b. Home delivery c. Other

17. Are you satisfied with the ambience of your preferred fast food

restaurant?

a. Yes b. No c. little bit

33

Bibliography

Books and magazines:

• Consumer Behavior

- Fourth edition by David L. London & Albert J. Delia Bitta.

• Research methodology (Methods & Technology)

Revised Second edition by C.R.Kothari

Through net surfing: • www.google.com

• www.wikipedia.com

• www.answers.com