A

RESEARCH REPORT
On
“Buying Behavior of consumers of age
group 18-25 for milk chocolate bars
with special reference to:-

“
(A case study of Yamuna Nagar)

Submitted to
Kurukshetra University, Kurukshetra

In partial fulfillment of the requirement

for the degree of

Master of Business Administration

(M.B.A)
Session 2004-2006
 Contents (Index)
Page No.

 Introduction to the study

 Research Methodology

A. Problem Statement

B. Research Design
• Area of Study
• Objective of the Study
C. Data Collection
• Data Collection Methods
• Data Collection Techniques
D. Sampling Design
• Sampling Unit
• Sample Size
• Sampling Techniques
• Constraints of the study
E. Statistical & Analytical Tools

 Analysis & Interpretation

 Findings

 Conclusions

 Suggestions

 Annexure

• Questionnaire
• Bibliography
 Acknowledgement
Preservation, inspiration and motivation have always played a key role in the
success of any venture. In the present world of cut throat competition project
is likely a bridge between theoretical and practical working, willingly I have
prepared this particular project.

First of all I would like to thank the supreme power, the almighty God
who is obviously the one who has always directed me to work on the right
path of my life. With his grace this project could become a reality.

I feel highly delighted with the way

my dissertation report on topic
“Buying Behavior of consumers of age
group 18-25 for milk chocolate bars
with special reference to:-

“
(A case study of Yamuna Nagar)

Any accomplishment requires the effort of many people and this work is not
different. Firstly, I would like to extend my sincere thanks to Dr. Vikas
Daryal (Assistant Professor, TIMT) for his able guidance, regular
counseling, keen interest and constant encouragement, without this the
project would not have a successful end. I am highly thankful to him for his
helpful attitude, regular coaching and inspiration.

I sincerely thank to all the faculty members and the staff associated
for their support given to me time to time. Also, I would like to thank to all
my friends and family members for their support given to me time to time. I
don’t have words to express my thanks, but still my heart is full of gratitude
for the favors received by me from the every person.

(Hitesh Bhalla)
INTRODUCTION
TO THE STUDY
 Introduction
This project is about preference of the consumers towards FMCG products
i.e. chocolates in domestic market (in special context of nestle, Cadbury &
Amul chocolates)
The story of chocolate began in the new world with the Mayans, and also the
word chocolate comes from the Mayan word xocoatl, and the word cocoa
from the azlec cacahuati, who drank a dark brew called cacahuaquchtl.
Later, the Aztec consumed chacahoua and used the cocoa bean for currency.
In 1523, they offered cocoa beans to Cortez, who introduced chocolate to the
world, where it swiftly became a favorite food among the rich and noble of
Europe.

From the beginning, turning raw, bitter cocoa beans into what one 17th
century writer called “the only true food of the gods” has been a fine art, a
delicate mixture of alchemy and science. Centuries ago it was discovered
that fermenting and roasting the beans could create an almost otherworldly
flavor. In 1875, after years of trying, a 31-year-old candy maker in vevey
named Daniel peter figured out how to combine milk and cocoa power.
The ancient Aztecs believed chocolate
To be the “FOOD OF THE GOD ”
Firstly, there is a need to know about the chocolate…that what is chocolate.
Why chocolate is the most popular dessert flavoring around.

MEANING OF CHOCOLATE:-
1. A preparation of the seed of cocoa, roasted, husked, and ground
(without removing any of the fat), often sweetened and flavored, as
with vanilla.
2. A beverage or confection made from this.
 3. Dark brown.
4. A divine substance inspiring passion in those who consume it.
Origin of chocolate

The word chocolate comes from the Mayan word xocoatl, and the word
‘cocoa’ from the Aztec cacahuatl. In Mexico, the beverage was called
chocolath, from lath (water) and choco. Supposedly the Spaniard found the
Mexican word har to pronounce and called it cacao. Chocolath, chocolath,
chocolath. Puff puff. See? I did it! (But let’s stick to cocoa) *LoI*
From cocoa to chocolate
Sorting, clearing, frying, crushing, grinding is the only small part of stages
of production cycle transforming cocoa beans in chocolate, which we eat.
Chocolate is really the unique product, tasty, highly nutritive (about 550
kkal in 100gm of a product), capable to be stored by years without change of
properties. It contains 50-55% of carbohydrates, 32-35% of fat, 5-6% of
fibers. And also tannin substances (4-5%), stimulators-the bromine and
caffeine (1-1.5%), microelements Na, K, Mg, P, Fe and vitamins B1, & B2.
 HISTORY OF CHOCOLATE

The discovery of cocoa was only a first step in the direction of chocolate.
The Mayas were the first to cultivate the cocoa bean for the fruits it yielded.
They used the beans as an ingredient in their favorite chocolate drink
‘xocotlatl’.
Legend suggests that the first beans came out of paradise and lent wisdom
and power to the person that ate them. For obvious reasons, the use of cocoa
was kept to a minimum by the emperors.
Before the Spanish explorers discovered the New World, chocolates and
other “exotic” foods were totally unknown in Europe. Columbus was the
first European to become acquainted with cocoa, but he wasn’t exactly
impressed.
During one of his conquest in the New World he met the Aztecs. For many
generations, they drank an infusion of grilled seeds and spices. This mixture
tasted disgusting and it also contained cocoa beans. The Aztecs adopted the
ides of cocoa consumption from the Mayas.
However the conquistadors pizzaro and, in particular, Cortes did show
interest in the bean. Fernando Cortes reached the east coast of Mexico in
1519. as an honored guest of Montezuma (Aztec emperor and inveterate
chocolate fanatic) he was offered xocotlatl –a small portion of aromatic
chocolate drink mixed eith vanilla, pepper and other herbs.
For the Mayas, cocoa beans were very important, not only were they a
poplar means of exchange, they also had a religious value. The Mayas
sacrificed cocoa beans at the funerals of the upper class.
 PREFACE

The customer is king. Finally ten years after the liberalization of India’s
economy began. The market place has, suddenly become tightening
competitive. Not only have new players stormed into the country, there are
more brands available then ever before in every segment of every market.
The customer today buys only that which meets his/her every desire. This
demands more intimate understanding of the customer by the “Smart
Companies” the study has been divided into six parts.
First part contains briefly the CHOCOLATES, history of chocolates, along
with the development of passion for chocolates.
Second part presents an overview of evolution of chocolates, chocolate
industry-growth and competition in various categories. Major players in this
industry.
Third and Forth part includes a brief profile about the consumer behavior &
Research Methodology for the study. This part describes the term consumer
behavior and it’s importance.
Part five deals with the Analysis & Discussion. Important findings have
been discussed at last for better understanding.
Lastly, Part six namely “Findings & Recommendation” highlights the major
findings during the course of the study. Accordingly, recommendations have
been made.
 INTRODUCTION

EVOLUTION OF CHOCOLATE
1753-1849
1753 Swedish biologist Carolus Linnaeus revealed his feeling for
chocolate while attending to the task of classifying organisms in
a binomial system. To the chocolate
tree he gave the botanical name of theobroma cacao. Cacao
refers back to the original native language. Theobroma is a
Latin term that translates to “food of the gods”.
1765 In 1765 the Englishman James Watt invented the steam engine and
in doing so set in motion what we now refer to as the
industrial revolution. Around the same time in the colony of
Massachusetts one of the first machine oriented chocolate
manufacturing businesses was being established. The
partnership of John Hannon, an Irishman, and Dr. James
Banker of the Massachusetts colony formed the company
Hannon’s Best chocolate. Through the use of an old grist mill,
cacao beans were ground into chocolate liquor, pressed into
cakes of paste for eventual use as a chocolate beverage. During
a routine trading mission to the West Indies, Hannon was
presumed dead when his ship failed to returned. The name of
the company subsequently changed to the Baker company. It
was not until 1927 that the Baker family sold their business to
General Foods.
1774 The mysterious rumors that surrounded the death of pope
clement XIV, give credence to the notion that chocolate had
become a favorable way of distinguish poison. The pope died
after consuming a chocolate beverage, which also killed the
unwritten confectioner who shared in the consumption.
Through there is no proof, the Jesuits are suspected to have
arranged his demise. The pope had been in opposition to the
Jesuits, and they were known chocolate drinkers. So the
conclusion, while not provable, is not unfounded.
1819 Francois Louis Cailler opened a chocolate factory on lake
Geneva near Vevey. He used machinery he had developed
himself, making him a pioneer in the evolution of Swiss
chocolate.
1828 Chocolate maker and chemist Coenraad Van Houten developed
the process now known as “Dutching.” His patented invention
involved the removal of close to half of the cocoa butter from
chocolate liquor through the use of hydraulic pressure. The
removal of the cocoa butter resulted in a commensurate
decrease in fat content. Instead of fifty percent, the hard cake
that was let from this process had a fat content of only Twenty-
Five percent. The cake could then be crushed into a powder.
The use of alkaline salt allowed for easier mixing with warm
water. It also made the color darker and had the pleasing affect
of a less bitter taste. This invention would be the key in the
development of chocolate as a confection.
1847 Joseph Fry was a Quaker who began manufacturing chocolate
under the name of Joseph Fry & Sons. While the original
Joseph Fry left the company to become a type founder, his sons
 continued the business. One of his sons, another Joseph Fry,
purchased a Watts steam engine in 1789 to more efficiently
grind cacao. A great-grandson of the original Joseph Fry led the
business toward the development of edible chocolate. Hoe
found that by remixing some of the cocoa butter back into the
processed “Dutched” cocoa powder and adding sugar, a paste
was formed that could be pressed into molds. The effect of this
was a chocolate bar that gathered as much attention as
chocolate beverages had.
1849 Ghirardelli, an Italian native, planned early on having a
chocolate business. However, he traveled first to Uruguay and
then to Peru before setting in California in 1849. Though he had
been attracted by the Gold Rush, he soon learned that there was
more reliable profit to be had selling tents to other gold miners
than in actual mining. He used the money he saved and started
the Ghirardelli chocolate factory, which is still located in San
Francisco.

1849-1986
1850’s Prime Minister William Gladstone, in an effort to boost the
economy, lowered the taxes on cacao beans, allowing British
manufacturers to expand their market.
1860 British FDA is founded. A British journal called the Lancet
discovered that many chocolate manufacturers were employing
various methods of “Cutting” chocolate with something less
expensive. One report revealed that cocoa powder was being
thinned with brick powder. Stirred to respond, the British
government passed its first food and drug act in 1860.
1868 John Cadbury was another Qyaker who became interested in
chocolate production. In 1824 he had opened a Grocery store in
Birmingham, England. Cadbury featured cacao beans that he
would roast and grind himself. In time he realized the interest
and profitability in changing his focus to manufacturing of
chocolate. Cadbury became so renown that he received a Royal
Warrant in 1854 to be the single cocoa and chocolate provider
for Queen Victoria. Richard and George Cadbury took over
their father’s business and in 1866 purchase a Van Houton
machine. They began to market Cadbury cocoa powder. By
1868, the Cadbury company produced the first box of chocolate
candies. Their business continue to flourish, and in 1879 they
took over the Birmingham suburb of Bourneville. The factory
they built there supported a town, providing both worker
housing and recreational facilities.
1879 During the same period that Cadbury was developing into a
formidable chocolate force, a Swiss chocolate manufacturer
was struggling to find a way to combine chocolate with milk.
Daniel Peter could not produce something with a smooth
consistency because the milk could be made more shelf-stable
for use a baby formula. The product of Nestle’s
experimentation was a sweetened condensed milk. The new
milk, which had lesser water, was mixable with chocolate and
made a product that would not spoil easily. Henri Nestle and
Daniel Peter formed a company in 1879. Today, the largest
food company in the world is Nestle.
1879 A conching machine was created in 1879 that allowed for the
smoothest chocolate yet. Rudolf Lindt used a concave granite
 bed where chocolate liquor, sugar, and milk if desired, would
be ground back and forth by heavy rollers. Lindt named his
chocolate Fondants because their texture was as smooth as the
popular creamy candies. The process of conching soon became
a part of common chocolate manufacturing. In addition, the
friction of the rollers produced a heat that made roasting an
unnecessary steps. Today, the rollers in conching machines are
kept at a controlled temperature for an even higher quality.
1893 Milton Suavely Hershey was a Mennonite from Pennsylvania
who owned a caramel manufacturing plant. When he visited the
world Colombian Exposition in Chicago his interest was
initially to purchase and use machines to make chocolate
covered candies. His interest changed course after visiting
Europe and researching the many chocolate manufacturers
there. Hershey then decided to focus his business on chocolate
production and in 1900 he introduced to the world the milk
chocolate Hershey bar. It was followed five years later by the
Hershey kiss. With business expanding beyond expectation,
Milton Hershey took over the town of Derry Church,
Pennsylvania and renamed it Hershey. Thought he also
developed a Hershey, Cuba around a sugar mill he owned,
Milton Hershey was focused out of Cuba in1959 when Castro
gained control. Today Hershey, Pennsylvania is an impressive
tourist attraction.
1908 The triangular Toblerone chocolate bar was created and
launched into market by Swiss chocolate maker Jean Tobler.
1913 Swiss chocolate maker Jules Sechaud invented the chocolate
filled bonbon.
1929 At the end of the twentieth century Cella’s Confections, on
West Broadway and canal, was a part of many factories that
made up New York City’s confectionary district. In 1929 their
candy factory began manufacturing chocolate-covered cherries.
Today, while the other confectioneries have disappeared,
Cella’s remains.
1936 Philip Silverstein owned a candy company on Delancey Street
in New York City. In 1936 he created a thick, nut and raisin
filled chocolate bar, known as the Chunky Bar.
1940’s As the United States geared up for a war in Europe, Militon
Hershey suggested an addition be made to the standard soldier’s
“D-Ration.” The American military began to include three 4
ounce, 600 calorie chocolate
bars in each “D-Ration.” While from today’s perspective this may
seem odd, the Aztecs had used chocolate for the edification of
their own warriors. In addition to lifting the energy and spirits
of the troops during World War II, the chocolate bars became
associated with peace, as malnourished holocaust survivors
were rescued by American troops offering chocolate.
1986 When Jim Walsh left his life as an adventures executive in
Chicago, he decided to move to Hawaii to start a chocolate
business. He purchased plantations on Kea’au and Kona, and
decided to use the fine criollo cacao beans for his foundation.
The beans he harvested are sent to California, after they have
been fermented and dried, and are processed into high quality
 chocolate. Only available through mail order, the chocolate is
used primarily by pastry chefs.

Major Players in the Market

CADBURY (INDIA)

Trading at rs.850, the Cadbury (India) stock presents a good long-term

investment option.
After hitting a high of Rs. 981 in March 2000, the stock retraced to its
present level. The current price discounts the latest EPS 49 times. With good
growth protects ahead and a strong financial background, the stock may hold
good potential for steady returns over the long term.
Cadbury (India), subsidiary of Cadbury Schweppes Overseas, is one of the
leading player in the chocolate and sugar confectionary segment. The parent
has a 51 percent stake in the company. For the year-ended December 1999,
close to 76 percent of the sales turnover was derived from chocolate
followed by malted foods (22 percent).
Cadbury (India) has for long been the leading player in the chocolate
industry. It is virtually a household name with leading brands such as Five
Star and Dairy Milk. Of late, the company has been flooding the market with
new launches. Among the successes of recent years are Perk and Picnic.
In the malted food segmented, Bournvita is one among the popular brands.
However, the health- drink segment has failed to lead support to the
company’s bottom-line in the recent past. Volumes in Bournvita have been
deciding for some time. However, this is not likely to be a drag on the
profitability.
Cadbury (India) has levered on its marketing strengths and product range.
Competition may stem from players such as nestle in the near term. Apart
from this, other new players such as Mars and Hershey’s may have an
impact on the level of competition. However, the reduction in the excise
duty on malted drinks and chocolates and the lower import duties on cocoa
is likely to have a positive impact on the cost-structure of the firm.
The earnings performance of 2000 first quarter was impressive. Sales
revenue rose 20 per cent to Rs. 139.34 crores compared to the corresponding
previous period. Operating margins declined marginally from 16.4 per cent
to 15.7 per cent. Post-tax earnings rose a 11.5 per cent to Rs. 10.34 crores. If
the top line growth is sustained at this level, it could provide a boost and
growth over the long term. Shareholders can stay invested.
 NESTLE

The story of chocolate began in the new World with the Mayans, who drank
a dark brew called cacahuaquchtl. Later, the Aztecs consumed chacahoua
and used the cocoa bean for currency. In 1523, they offered cocoa beans to
Cortez, who introduced chocolate to the world, where it swiftly became a
favorite food among the rich and noble of Europe.
From the beginning, tuning raw, bitter cocoa beans into what one 17th
century writer called “the only true food of the gods” has been a fine art, a
delicate mixture of alchemy and science. Centuries ago it was discovered
that by fermenting and roasting the beans, an almost otherworldly flavor
could be created. In 1875, after tears of trying, a 31-year-old candy maker in
Vevey named Daniel Peter figured out how to combine milk and cocoa
powder. The result-milk chocolate. Peter, a friend and neighbor of Henri
Nestle, started a company that would quickly become the world’s leading
maker of chocolate. For three decades the company called Peter, Cailler,
Kohler relied on Nestle for milk and marketing expertise. In 1929, the
almost inevitable merge took place as Nestle acquired Peter, Cailler, and
Kohler.
 AMUL

AMUL CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids,

Chocolate mass Composition Milk Fat 2% Sugar 55% Total fat 32.33%
(Milk fat + Cocoa Fat) Cocoa Solids 7.5% Milk Solids 20% Product
Specifications: Meets all requirements under the PFA for boiled sugar
confectionary. “A gift foe someone you love”. Amul Chocolate has chosen
the phrase “A gift of someone for love” to market their chocolate products.
Today, GCMMF’s Amul brand of milk products receives business queries
from dozens of countries, ranging fron the U.S. and the Netherlands to
Singapore and New Zealand-thanks to an innovative marketing campaign on
the World Wide Web.
The round-eyed, Chubby-Cheeked Amul Moppet has been a wildly popular
advertising fixture, with its punchy one-liners amusing Indian viewers from
bus stands, lamp kisos and billboards for over thirty years. The ultimate
compliment to the butter came when a British company recently launched a
butter and called it Utterlt Butterly, a fitting recognition of the “Thorough
bred, utterly Butterly Delicious Amul.” Every week, Amul’s topical ads for
its butter products are posted on its Web site, along with recipes fore Indian
dishes featuring Amul products. Archives of hundreds of topicals dating
back to 1979 are available on the site. The topicals have also been carried
every day on the Indian World home page.
Consumer
Behavior
 INTRODUCTION

The term consumer behavior refers to the behavior that consumers

display in searching for, purchasing, using, evaluating and disposing of
products and services that they expect will satisfy their needs. The study of
consumer behavior is the study of how individuals make decisions to spend
their available re- source (time, money, effort) on consumption related items.
It includes the study of what they buy, why they buy it, when they buy it,
where they buy it, how often they buy it and how often they use it.
Information about the pattern of consumption in various segments of
society and dynamics of consumer behavior are central to the understanding
for developing new concepts in marketing. The essence of modern
marketing concept is that all elements of business should be geared towards
identifying and satisfying the needs of the consumers.
Decision Making Process
The consumer’s decision to purchase or reject a product is a moments
of final truth for marketer. It signifies whether the marketing strategy has
been wise, insightful, and effective, or whether it was poorly planned and
missed the mark. Thus, marketers are particularly interested in consumer’s
decision-making process. We would be discussing a simple model of
consumer decision making that emotional consumer. The modal, has three
major components:
1) Inputs
2) Process
3) Output
 CONSUMER DECISION MAKING PROCESS
External influences

Firm’s Marketing Efforts Socio culture Environment

• Family
• Product
• Reference Group
• Price
Input • Other non-commercial
• Place
influence
• Promotion
• Social class
• Culture and sub-
culture influences

Consumer Decision Making

• Need recognition Psychological Factors

• Information search
• Valuation • Perception
alternatives • Motivation
• Attitude
Process
• Learning
• Personality

Experience

Post Purchase Behavior

Purchase
• Trial
Output
• Repurchase

Post purchase evaluation

INPUTS
The input component draws on external influences that serve as
sources of information about a particular product and influence a consumer’s
product-related values and behavior. Chief among these input factors are the
marketing – mix activities of organizations that attempt to communicate the
benefits of their products and services to their potential customer, and the no
marketing socio-cultural influences, which, when internalized, affects the
consumer’s purchase decision.

PROCESS
The process component of the modal is concerned with how
consumers make decisions. The psychological field represents. The internal
influences (motivation, perception, learning, personality, and attitudes) that
effect the consumer’s decision making processes.
Prepurchase Activity: After the problem is identified, the buyer indulges in
prepurchase activity. It is under stood that need is a father of a deed.
There generally remains a time lag when a person thinks to buy and
the actual incidence of buying. During this time, the person is energized and
is likely to be influenced by various factors. Need arousal drives the
consumer to collect information about the required product. He first indulges
in internal search, scans his psychological field so as to recollect of retrieve
any information or past experience related to particular need. His
psychological field comprises of his past learning. Perception, personality
and past experience. If he is not satisfied he then goes in for external search
and looks for various sources of information. The degree of perceived risk
can also influence this stage of the decision process. In high – risk situation
they are likely to engage in complex information search and evaluation
tactics.
Of key interest to marketer are the various sources of information that
the consumer will return to and the relative influence that they will have on
his buying behavior.
Evaluation of Alternatives: when evaluating potential alternatives
consumers tend to use two types of information:
1. A “list” of brands from which they plan to make their selection (the
evoked set), and
2. The criteria they will use to evaluate each brand.
The criteria consumers use to evaluate the brands that constitute their
evoked sets usually are expressed in terms of important product
attributes. Consumers use certain procedures or rules to facilitate a
choice among multi – attribute objects. Consumers decision rules have
been broadly classified into two major categories compensatory and
non compensatory decision rules.
An understanding of which decision rules consumer apply in
selecting a particular service or product is useful to marketers
concerned with formulating a promotional programme.

Output
The output portion of consumer decision – marking model concerns
two closely associated kinds of post decision activity. Purchase behavior and
post purchase evaluation. The objective of both activities is to increase the
consumer’s satisfaction with his/her purchase.
Purchase Behavior: Consumer make two types of purchase and repeat
purchase. If a consumer purchase a product (or brand) for the first time, and
buys a smaller quantity than usual, this purchase would be considered a trail.
Thus, a trail is the exploratory phase of purchase behavior in which
consumers attempt to evaluate a product through direct use.
If the new brand is established product category (cola, chewing gum,
candies) is found by trail to be more satisfactory or better than other brands,
consumers are likely to repeat the purchase, Repeat purchase behavior is
closely related to the concept of brand loyalty, which firms try to encourage
because it contributes to greater stability in the marketplace.
 Research
Methodology

RESEARCH METHODOLOGY
Research methodology in a way is a written game plan for conducting
research. Research methodology has many dimensions. It includes not only
the research methods but also considers the logic behind the methods used in
the context of the study and complains why only a particular method of
technique has been used. It also helps to understand the assumption
underlying various techniques and the criteria by which they can decide
that certain technique will be applicable to certain problems and other will
not. Therefore in order to solve a research problem, it is necessary to design
a research methodology for the problem as the some may differ from
problem to problem.
This chapter focuses on the various techniques, methods and
assumptions used in this study. It sheds light on the research problem,
objectives of the study, and also its limitations. The later part of the chapter
explains the manner, in which the data is collected, classified, tabulated,
analyzed and interrupted so as to each to conclusive results.
The study is of diagnostic nature and thus the overall research design
is going to be rigid. The design should provide enough provision for
protection against bias-ness and must maximize reliability.

HYPOTHESIS:-
Ho= Various factors (image of product, paying capacity, price of product, packaging
of product brand awareness, influence of advertisement) effect the consumer buying
behavior for milk chocolates bar.

H1= NO effect of various factors (image of product, paying capacity, price of

product, packaging of product, brand awareness, influence of advertisement) on
consumer purchase in milk chocolate bars.

A) PROBLEM STATEMENT:-
Research work is management parlance is extremely important for a
given close view of the relatives of the real life business issues . For any
management student who is striving to perform outstandingly. It is of
paramount importance that apart from theoretical knowledge he must also
gain some practical knowledge. Survey report deals specially with
providing an opportunity to management students to have some exposure in
real business world. My study topic deals with Consumer Behavior and
different factors that influence consumer to purchase a particular brand of
chocolates.
As chocolate is regarded as one of the biggest Fast Moving Consumer
Good (FMCG), there are many factors in mind of consumer which induce
them to purchase a particular brand of chocolate. Some of these factors are
Price, Taste, Packaging, Brand name. Ever changing behavior of consumer,
dominance of different brands in the market compelled me to undertake a
research work in this segment. The prime objective of my study is to analyze
the effect of various factors on buying behavior of consumers.

B) RESEARCH DESIGN:-
To analysis the buying behaviors of the residents of Yamuna Nagar Sample
Survey Methods has been employed through other methods are also
important. This method is given prime significance in modern research
because of its extensive use to study the relationship of different factors,
attitudes and practices of society and to explore the problems that cannot be
treated by experimental methods.
To collect data, a number of techniques are employed under the
sample survey method i.e. questionnaire. The increasing use of questionnaire
is probably due to increased emphasis by social scientists on quantitative
measurement to uniformly accumulated data.
A) Area of study:-
The area of the study is different Markets of Yamuna Nagar in order to
collect the Primary data from the respondents.
B) Objective:-
1. To study the brand preferences of consumers from the three brands of
chocolates i.e. Amul, Cadbury, Nestle available in the market.

2. To find the extent of brand loyalty of consumers that exists among

different chocolate brands.
3. To study the influence of various aspects on buying behavior. These
factors are:-
 Price
 Taste
 Brand name
 Packaging
4. To study the usage & brand awareness of chocolates product in
among the residents of Yamuna Nagar.
5. To study the consumer preference for different chocolate products.

Study area : Yamuna Nagar.

Target Segment : Consumers of Milk chocolates bars of age

group 18-25

C) SELECTION OF SAMPLE:-
It becomes impossible to contact each and every individual of the population
due to limitations of essential resources like time and money. Therefore, the
study is preferably allowed down to a representation sample to make the
study more manageable.
Keeping in the view the objectives and resource limitation of the
study, 100 respondents were considered.
Respondents 100(Youths of age group 18-35)
The selected sample is representative of the population and is accurate
and practicable.

D) SAMPLING PLAN:-
The following factors will be taken into consideration within the scope of
sampling plan:

I Sampling Unit: It defines the target population that will be

sampled i.e. it answers who is to be surveyed. In this study, the sampling
unit is youth with in the age group of 18-25 years.

II Sampling Size: - It indicates the numbers of people to be

surveyed. Though large samples give more reliable results than small
samples but due to constraints of time and money, the sample size was
restricted to 100 respondents.

Probability sampling can be of following types:

• Simple random sampling
• Stratified random sampling
• Cluster (area) sample
In this case, stratified random sampling was done since the respondents will
classified into well defined classes or strata that were distinct from each
other.

E) COLLECTION OF DATA:
After the research problem has been defined and the research design
has been chalked out, the task of data collection begins. The data can be
collected mainly through primary sources, but it was supplement with
secondary data.
I Primary data collection:
Primary data is the data which is collected through observation or direct
communication with the respondent in one form or another. These are
several methods for primary data collection like Observation Method,
Interview Method, through schedules, through questionnaires and so on.
II Secondary data collection methods:
Secondary data is collected through
• Magazines
• Journals
• Portals

F) STATISTICAL & ANALYTICAL TOOLS

 CHI – SQUARE TEST:- For measuring the affect of price on
purchase of milk chocolate bars of different brands.
 V= (r-1)*(c-1)

Expected Frequency = Row Total * Column Total / Total

frequency

If , Table Value > Calculated Value, Hypothesis is accepted.

 GROUP CORRELATION:- For measuring the correlation

between various influencing factors like price, taste, packaging,

brand name etc. and buying behavior of consumers for milk

chocolate bars the Group Correlation is used and the formula is:

r = N ∑ fdxdy - ∑fdx∑fdy
√ N∑fdx2-(∑fdx)2 √ N∑fdy2-(∑fdy)2

 T-TEST (Student’s Distribution):- for measuring the

consumption level of consumers of milk chocolate bars of
three brands.

s= √∑X 2

n-1

If , Table Value > Calculated Value, Hypothesis is accepted.

 LIKERT SCALE:- For the ranking of milk chocolate bars

according to consumer preferences
Analytical tools : Like Pie graphs etc.

Formation of Questionnaire
Quite often the questionnaire is considered as the heart of a survey
operation. Hence it should be carefully constructed. It is an investment that
is widely used to collect various types of data and consists of long lists of
questions designed to collect any information. It has personally been found
that people are more frank in giving replies to a questionnaire than to an
interview schedule. Though being less expensive, it has certain limitations
like incomplete entries and erroneous responses. But the educational
qualification of the respondents is an additional factor which renders this
technique the most relied upon.
Formation of a good questionnaire involves intensive thinking and
deliberation of the problem with predetermined objective and aims properly
placed in the questionnaires.
The questionnaire framed for the purpose of the study consists of a
limited number of questions placed in logical order. So, that the objective of
the question is clear to the respondents. All the questions are centered on the
problem keeping in the mind. The questions were both open and close ended
as well as multiple choices.
Analysis of Data:
Data, after collection, has to be analyzed in accordance will the
outline laid for the time of developing the research plan. The term analysis
refers to the computation of certain measures along with searching for
patterns of relationship that exist among data groups. Data presented in raw
state appear unrecognized and complex. Statistical processors are used this
complex data into some significant understandable form.
 CONSTRAINT OF THE STUDY
There are following constraints of the study which can be explained as:-
1) The time of research was short due to which many fact has been
left untouched
2) The Area undertaken in research in Yamuna Nagar only. But to do
a completer research a wide area is required, so the area is also a
constraint of the study.
3) Sample for the study taken is of only 100 consumers. Which can
also act as a constraint in the study.
4) While collecting data some of the consumers are not willing to fill
the questionnaire, so they might not fill their true behavior. This
can also be a constraint of the study.
 Analysis
&
Interpretation
 ANALYSIS AND INTERPRETATION

Q1. Which companies’ chocolate do you purchase? Please rank them

according to your preference.

Brand Name Percentage

Cadbury 40

Nestle 35

Amul 25

25%
40% Cadbury
Nestle
Amul
35%

As per shown in the Pie chart, the maximum market share is hold by
Cadbury. And least share is hold by Amul followed by Nestle. And this
result is obtained from the response of customers towards Questionnaire
filled by them for the consumption of milk chocolate bars.
Q2. What is your pattern of consumption?

Pattern of consumption Percentage of consumption

More than one per day 15

Daily one 25

3-4 chocolates per week 45

Weekely 10

Rarely 5

Percentage of consumption
More than one
per day
Daily one
10% 5% 15%
3-4 chocolates
25% per week
45% Weekely

Rarely

As shown in Pie chart, most of the consumers consume milk chocolate bars
as 3-4 per week, which represent 45% of the total number of surveyed
consumers. And second most percentage of consumers consumes milk
chocolate bars are of daily one. As calculated by Tool Of T-Test for every
brand of milk chocolate bars, in which the hypothesis is taken that more than
60% of population consumes milk chocolate bars more than one a week.
And in these three brands i.e. Cadbury, Nestle and Amul the result was
positive
Q3. Which factor you consider the most while purchasing the chocolate?

Consumer's consideration Percentage

Price 16

Taste 48

Brand 18

Packaging 9

Other 9
Percentage

Price

9% 16% Taste
9%

Brand
18%
48% Packaging

Other

Most of the consumer of milk chocolate bars says that the most considering
factor by them on the basis of which they purchase a particular brand of milk
chocolate bars is Taste of that milk chocolate bars. And the lest interested
factor is Packaging. As analyzed with the help of Correlation Tool in which
the correlation between different factors that influence consumer to purchase
a particular brand of milk chocolate bar is +.132, which shows that there is
positive correlation between different influencing factors and buying
behavior of consumers.
Q4. What extent of price tag influences your purchase decision of chocolate?

Extent of influence Percentage

High 13

High average 23

Average 27

Low average 19

Low average 18
Percentage

High

18% 13% High average

23% Average
19%
27% Low average

Low average

Shown by the Pie chart, price has an influencing effect on the purchasing
behavior of consumers for milk chocolate bars, as 23% and 27 % of
consumers lies in high average and average parameter. And to prove the
same Chi-Square Test has been used,to prove the same observed values are
compared with the expected once. And calculated chi-square is as:-
χ 2
Calculated = 0.437

But the calculate value was lesser than table value. Hence null hypothesis is
selected that change in price has influencing effect on buying behavior of
consumer for milk chocolate bars.
Q5. Which reference group influence you most to buy a particular
chocolate?

Reference Groups Percentage

Friends 55
Family 3
Retailers 1
Celebrity 39
Others 2

Percentage

2 Friends

39 Family
Retailers
55
Celebrity
13 Others

As shown in the bar graph, from reference group friends are the most
influencing factor which influence consumer to purchase a particular brand
of milk chocolate. And this statement is supported by 55% of consumers of
milk chocolate bars. And the second most influencing factor which influence
customer to purchase a particular brand of milk chocolate bar are
celebrities , and this statement is supported by 39% of consumers.
Q6. You consider manufacturing and expiry date while buying any
chocolate________

Consumer's View Percentage

Strongly Agree 28

Agree 29

Neutral 37

Disagree 4

Strongly Agree 2

Consideration on manufacturing
and Expiry date

Strongly Agree
4%2%
28% Agree
37% Neutral
Disagree
29%
Strongly Agree

As shown in Pie chart, about 37% of consumers are neutral while

considering the manufacturing and expiry date of milk chocolate bars. But if
talk about those who strongly agree on the consideration of manufacturing
and expiry date represented by 28% of population and 29% of population
represent those who are agree on the statement that they consider
manufacturing and expiry date while purchasing any milk chocolate bar.
Q7. Are you satisfy with the present brand of chocolate in Yamuna
Nagar_______

Satisfaction Level Percentage

Strongly satisfied 27
Satisfied 32
Neutral 21
Dissatisfied 12
Strongly dissatisfied 8

Consideration on manufacturing
and Expiry date Strongly
satisfied
Satisfied

8% Neutral
12% 27%
Dissatisfied
21%
Strongly
32%
dissatisfied
About 27%of consumers are satisfied with the present brands of Milk
chocolate bars in Yamuna Nagar and 32% are satisfied. As calculate with the
tool of LIKERT SCALE, if we consider brand wise then milk chocolate bar
of Cadbury is the most preferred brand in Yamuna Nagar which holds
40% of the market share and after that Nestle has second position with a
holding of 35% of the market share and the least preferred brand from the
take brand to make report is Amul with a holding of 25% of market share
Analysis

Let us take the hypothesis as:-

H0 = There is correlation between various influencing factors like

price, taste, packaging, brand name etc. on buying behavior of consumers for

chocolate.

H1 = There is no correlation between various factors like price, taste,

packaging, brand name etc on buying behavior of consumers for

chocolate.

X CADBURY AMUL NESTLE

+1 0 -1 f fdy fdy2 fdxdy
Dx

Y
Dy
PRICE +2 8 4 4 16 32 64 8
 (16) (0) (-8)
TASTE +1 19 3 16 48 48 48 3
(19) (0) (-16)
PACKAGING 0 3 5 1 9 0 0 0
(0) (0) (0)
BRAND NAME -1 7 1 10 18 -18 18 3
(-7) (0) (10)`
OTHER -2 3 2 4 9 -18 36 2
(-6) (0) (8)
f 40 25 35 100 44 166 16
fdx 40 0 -35 5
fdx2 40 0 35 75
fdxdy 22 0 -6 16

Coefficient of Correlation =

r = N ∑ fdxdy - ∑fdx∑fdy
√ N∑fdx2-(∑fdx)2 √ N∑fdy2-(∑fdy)2

r = 100x16 – (44)(5)__________
√ √
100x75-(05)2 100x66-(44)2

r = 1600-220_

146.6 x 149.62

r 1380___ = +0.132

10470.3

Hence it has been proved that there is a correlation between various

factors and buying behavior of consumers.

T-Test (Student’s Distribution)
For Cadbury
Let us take the hypothesis that customer 60% of consumers consumes
chocolate more than once a week.

Frequency X (x)2 =

(X-X)2
More than one per day 6x5 30 10.24
Daily one 10x4 40 174.24
3-4 per week 18x3 54 739.84
Weekly 4x2 8 354.44
Rarely 2x1 2 615.04
TOTAL 134 1736.8
X1 = 10.4

s = √ ∑X2
n-1

S = √1736.8 = 20.84

t = X1- µ √ n
S

= 26.8-24 √5
20.84
=2.8 / 20.84x √5
= 0.301
t cal = 0.301
v=n-1
=5-1
v =4
t table 0.05 = 4.60
so t table > t calculated.
Hence hypothesis is accepted. This proves that 60% of
consumer consumes more than one chocolate of Cadbury per week.
For Nestle
Let us take the hypothesis that customer 60% of consumers consumes
chocolate more than once a week.

Frequency X (x)2 =

(X-X)2
More than one per day 5x5 25 5.76
Daily one 9x4 36 73.96
3-4 per week 16x3 48 424.36
Weekly 3x2 6 457.96
Rarely 2x1 2 654.16
TOTAL 132 1607.2

X1 = 27.4

s = √ ∑X2
n-1

S = √1607.2 = 20.05

t = X- µ √ n
S

= 27.4-21 √5
20.05
=6.4 / 20.05 x √5
= 0.715
t cal = 0.715
v=n-1
=5-1
 v =4
t table 0.05 = 4.604
so t table > t calculated.
Hence hypothesis is accepted. This proves that 60% of
consumer consumes more than one chocolate of Nestle per week.

For Amul
Let us take the hypothesis that customer 60% of consumers consumes
chocolate more than once a week.

Frequency X (x)2 =
 (X-X)2
More than one per day 4x5 20 10.24
Daily one 6x4 32 51.84
3-4 per week 11x3 33 262.44
Weekly 3x2 6 116.64
Rarely 1x1 1 249.64
TOTAL 84 690.8

X = 16.8

s = √ ∑X2
n-1

S = √690.8 = 13.14

t = X- µ √ n
S
= 16.8-15 √5
13.14

=1.8 / 13.14 x √5
= 0.306
t cal = 0.306
v=n-1
=5-1
v =4
t table 0.05 = 4.604
so t table > t calculated.
Hence hypothesis is accepted. This proves that 60% of
consumer consumes more than one chocolate of Amul per week.
Let us take the hypothesis that there is association .
By applying Chi-Square……
OBSERVED

Price Influence on Chocolate purchase

CHOCOLATE High High Average Avg. Low
BRANDS Avg. Low
Cadbury 5 9 11 8 7
Nestle 5 8 9 7 6
Amul 3 6 7 4 5
Total 13 23 27 19 18

EXPECTED

Price Influence on Chocolate purchase

CTV High High Avg. Average Avg. Low Low
Brand
Cadbury 5.2 9.2 10.8 7.6 7.2
Nestle 4.5 8.05 9.45 6.65 6.3
Amul 3.25 5.75 6.75 4.75 4.5
Total 13 23 27 19 18

Observed Expected value

Value (O-E)2 (O-E)2/E
5 5.2 .01 .01
5 4.5 .25 .06
3 3.25 .125 .04
9 9.2 .04 .004
8 8.05 .025 .003
6 5.75 .125 .022
11 10.8 .04 .004
9 9.45 .2025 .02
7 6.75 .125 .02
8 7.6 .16 .02
7 6.65 .1225 .02
4 4.75 .5625 .12
7 7.2 .04 .01
6 6.3 .09 .014
5 4.5 .25 .04

χ 2 Calculated = 0.437
V = (r-1) (c-1) = (5-1) (3-1) = 8
for V = 8χ 2
0.05 table value = 15.58
So, χ 2
0.05 table value greater than χ 2
calculated value so hypothesis
is accepted and there is positive relation between change in price level and
purchasing decision.

Let us take the hypothesis that customer are satisfied with the present brands
of chocolate in Yamuna Nagar.

By applying Likert Scale……….

Cadbury Nestle Amul

Fully satisfied 11x5 = 55 10x5 = 50 7x5 = 35
Satisfied 13x4 = 25 11x4 = 44 8x4 = 32
Neutral 8x3 = 24 6x3 = 18 5x3 = 15
Dissatisfied 5 x 2 = 10 5x2 = 10 3x2 = 6
Fully dissatisfied 3 x1 = 3 3x1= 3 2x1 = 2
144 125 90

So as per the scale obtained the ranking of various brands of chocolate is as

under :-
= Rank 1

= Rank 2

= Rank 3
Findings
 FINDINGS
The findings of the study of consumer are buying behavior in chocolates
states among all the three to brands i.e. Cadbury, Nestle and Amul. The
brand at first place is Cadbury, the Nestle (2nd) and last is Amul. Among all
these three Cadbury is having the largest market share i.e. 40%, Nestle 35%
and Amul 25%. Among all these Brands Cadbury is the only company
offering largest number of brands in chocolates i.e. 6 (only for milk
chocolate bars). As compared to Cadbury Nestle Company is having 2
brands and Amul is with 4 brands of chocolates.
 The buying behavior of consumer for different brands of milk
chocolate bars is effected by various factors like price, taste,
packaging, brand etc. as shown in Analysis and Interpretation part, in
the form of group correlation.
 With the help of t-test it has also been proved that more than 60% of
consumers consume milk chocolate bars more than once in a week. It
has been calculated for all the three brands separately which has been
taken in the study.
 If there will be change in price level of milk chocolate bars, then it

will affect the buying behavior of consumers and this finding has been
proved with the help of Chi-Square Test (χ 2).
 The most important factor which consumers consider while
purchasing any milk chocolate bars is Taste of that chocolate. They
give preference to other factors also, but most important thing is taste.
 The buying behavior of consumers is also affected by the different
type of advertisements. And the most influencing media is electronic
 media, and from reference group friends are at most influencing
position.
 Quality is the most important factor which consumers consider while
switching over to any other brand of milk chocolate bars.

 Consumers of Yamuna Nagar are more attracted towards the foreign

brands like Cadbury and Nestle and demand that more number of
foreign milk chocolate bars should be available in the market, like
some milk chocolate bars brands of Swiss and French chocolates. As
this thing shows that consumer of Yamuna Nagar are more satisfied
with the foreign brands and hence demand more of it. But brands like
Amul are not able to get proper place in the market in spite that good
advertisement is being done by Amul also.

 One another finding of the research is that consumers of milk

chocolate bars of Yamuna Nagar are quite hesitant towards the use of
unfamiliar brands, whose advertisement they do not see on different
type medias.
Conclusion
 Conclusion
Every research activity ends with some conclusion and same happens with
this report also. By analyzing the collected data the conclusion which is
arrived is as follows:
 Foreign Brands like Cadbury and Nestle has an edge over Indian
brand like Amul. Which is calculate as with the help Likert scale And
the Value comes out for Cadbury brand is 144 . But if we talk about
Nestle Brand the value comes out is 125. And for Amul this value
comes out to be 90. Which grades foreign brands to be Higher as
compare to Indian brand of milk chocolate bar.

 Another conclusion of the study is that change in price has a

substantial effect on the buying behavior of consumer for milk

chocolate bars as the calculated value in Chi-Square test was .437and
the table value comes out to be 15.58 which shows that calculated
value is lesser than table value, hence the null hypothesis is selected
that there is positive relation between change in price level and
purchasing decision of the consumers for milk chocolate bars.
 Different factors like Price, Taste , Brand Name , Packaging have an

influencing effect on the buying behavior of consumers for milk

chocolate bars as shown with the help of Group Correlation tool in

which the correlation comes out to be Positive, this means that the

null hypothesis is selected and there is correlation between various

influencing factors like price, taste, packaging, brand name etc. on

buying behavior of consumers for milk chocolate bars.

SUGGESTIONS
 SUGGESTIONS

A detail study of the “Consumer’s Buying Behavior of Age Group

18-25 For Milk Chocolates Bars” was done. Some important suggestions
are as follows:

1. Dealers should keep chocolates in cold storage in summers, and try to

save chocolates from sun light as they melt in hot place, which will
ultimately affect the buying behavior of consumer if he/she not feel
satisfied.
2. The chocolates whose expiry dates goes off should be replaced at
once and fresh stock should be offered.
3. The retailers and distributors must be provided “Dispensers” and
company’s freezers or defreezers for storing chocolates, so that they
can offer good quality chocolates to consumers
4. In Yamuna Nagar there is a scarcity of foreign chocolates. Here some
of customers are ready to pay premium prices but due to non
availability they have to satisfy with available brands.
Annexure
 Questionnaire
On
“Buying behavior of consumer for
Milk chocolate bar of age group
18-25
With special reference to 3
companies i.e.
Cadbury, Nestle and Amul”

Q1. Which companies’ chocolate do you purchase? Please rank them according to your
preference.

Cadbury Nestle Amul

RANK 1

RANK 2

RANK 3

RANK 4

RANK 5

Q2. What is your pattern of consumption?

More than one per day Daily One

3-4 Chocolate per week

Weekly Rarely

Q3. You purchase same chocolate every time…

 Strongly Agree Agree

Neutral

Disagree Strongly
Disagree

Q4. Which factor you consider the most while purchasing the chocolate?

Price Taste

Brand Packaging

Other

Q5. What extent of price tag influences your purchase decision of chocolate?

High High Average Average

Low Average Low

Q6. Which mode of advertisement influence you most to buy a particular chocolate?
Magazine _______
Newspaper _______
Radio _______
Television _______
Other _______

Q7. Which reference group influence you most to buy a particular chocolate?
Friends _______
Family _______
Retailer _______
Celebrity _______
Other _______
 Q8. You consider manufacturing and expiry date while buying any chocolate________

Strongly agree Agree

Neutral

Disagree Strongly Disagree

Q9. If you switch over to another brand of chocolate then what factor you consider?

Price Quality Brand Name

Advertisement and Reference group Taste

Q10. Are you satisfy with the present brand of chocolate in Yamuna Nagar_______

Strongly Satisfy Satisfy

Neutral

Dissatisfy Strongly
Dissatisfy

Q11. What is your suggestion for the improvement of your preferred chocolate brand?

Name of the consumer ____________________________________

Age ____________________________________

Sex ____________________________________
 BIBLOGRAPHY

BOOKS

• Marketing Management - Kotler Philip (1st edition reprint)

o Chapter 7, Page 183
th
• Marketing Research – Donald T.S (6 edition), Page 49
rd
• Marketing Research – Beri G.C (3 edition), Page 79
th
• Marketing Research – Boyd H.W (7 edition)
th
• Research Methods – Donald C.R (8 edition), Page 120
nd
• Basic Marketing – Pereaurt W.D (2 edition), Page 450
th
• Consumer Behaviour – Della A.J (4 edition), Page 15
nd
• Consumer Behaviour – Gupta S.L (2 edition), Page 144
rd
• Consumer Behaviour – Schiffman & Kanauk (3 edition) ,
Page 306
MAGAZINES & JOUNALS

• Advertising Express- February 2006, Traditional Mass

Media, By K.Suresh, Page 35
• Marketing Mastermind – March 2006, Advertising
Reaction ,By Barada Prasad Panigrhy, Research Associate ,
 ICFAI Centre, Page 36
• Indian Journal of Marketing – March 2006, Article By
Dr.Banusmathy, Page 31
• Indian Journal Of Marketing – xxxv edition of January 2006
by K.suresh chandra
• Business World – April 24,2006 , Page 8
• Business India – Advertising , April 23,2006
• Business Today – Trends, April 23,2006
• Synergy - Article By Mittal Alok, January 2006,Page 74-85
• Business Research – June 2005, Page 31

Websites
www.amul.com
www.nestle.com
www.cadburyindia.com
www.consumerpsychology.com
www.altavist.com