A Study On Factors Influencing Consumers For Buying Convenience Food
A Study On Factors Influencing Consumers For Buying Convenience Food
A Study On Factors Influencing Consumers For Buying Convenience Food
CONVENIENCE FOOD
ABSTRACT:
Present research has shown the awareness level and purchasing features about convenience
food among consumers. Factor analysis, Mann-Whitney U test and Kruskal-Wallis was used
to verify the proposed hypothesis. Researcher performed Principal Component Analysis, on
11 items regarding various parameters identified for awareness of feature and 17 items of
regarding various parameters identified reasons to purchase. Out of 17 items regarding
various parameters identified for reasons to purchase, those items which had extraction value
of communalities < 0.5(reason purchase CF attractive packaging), suggested that it did not fit
well with the factor, was dropped. Mann-Whitney U test and Kruskal-Wallis were used to
find differences created by the demographics on the dependent variables (3 items of
awareness regarding convenience food, 5 factors of awareness regards to feature and 4 factors
of reasons to purchase). Research will help the manufacturers to identify various factors that
affect the purchase of the products.
1. INTRODUCTION:
As Jonathan Safran Foer says “food is not reasonable, it is culture, practice, need and
uniformity”. We can say consumer buying behaviour can be mentioned as the optimum
buying behaviour of the consumer. A purchasing decision is the final outcome of the
following factors like individual, social, intellectual and cultural factors. These elements
helps in the purchasing the different types of convenience food.
Global Market is competing amazingly with present high competition to reveal its products
with several marketing practices. Food industry is race with other industries in providing its
products. The present scenario take away meals are more in fashion.
National Restaurant Association of India (NRAI) announces fourth India Food Services
Report (IFSR) 2019 evaluates Indian food services industry’s retail area at 4.23 lakh crore
INR in 2018-19 and look forward to arise at a compound annual growth rate (CAGR) of 9%
to achieve 6 lakh crore INR in the next five years. IN 2019 Indian food service report (IFSR)
sets the share at 35% for the food service industry. This decision was made after the
discussion with 3500 consumers of different cities and with 130 CEOs of the food industry.
Therefore the share is expected to rise 43% in the succeeding five years. According to
Hospitality India biz.com, NRAI India Food Services Report in 2019, the food service
industry has hired 7.3 millions of manpower and it is expected to rise by 9.2 million in 2022-
2023.
Corona virus pandemic activated an extraordinary flow in buyers’ demand, with yield jump
up by $1.32trn in a 2019 year and reached $8.27trn in 2020. Figure and data are expected to
slip to $8.22trn in 2021. The global market is expected to get $9.16trn value by the year
2025. The convenience food section noticed the grand sales growth in the middle of the
COVID-19 pandemic, with revenues surge by 76% year-over-year to $763.5bn in 2020. This
number is expected to fall by $683.2bn in 2021. In the year 2020 sale of cereals and bread has
also increased. This segment of the universal food market strike at 27% jump in a year with
value $1.2trn in 2020. The confectionary segment sale rose as third largest food segment by
16% with the value $1.4trn in the 2020 year. In same year if compared with other markets
like fruits, vegetable fish, sea food and meat, then sale were 14%. Globally the Indian food
segment as the third largest market marked the growth rate by 36% that is $633bn in 2020.
Survey says that Indian food industry will grow by $645.8bn in 2021, and it will increase 2%
year-over-year. Japan with $425.2bn and Russia with $275.8bn will follow India in food sale
revenue. (Food service 13 January, 2021)
CULTURE PSCHOLOGICAL
FACTORS FACTORS
Shoppers’ pessimistic approach on branding of an item navigates the value of the product
(Richardson et al., 1996). Buyers preceding awareness builds an influence on buying habits
of the consumers (Bettman and Park, 1980).Consumers during purchasing gives priority to
the brand image on frozen food (Islam and Ullah, 2010). Buying behaviour of the consumer
influence by the three (Jaafar et al., 2012).The first internal factors which includes the
perceived value, standard & contentment from the products. The second is an external factor
that includes availability, pricing, branding, packaging and advertising. The third is the
demographic factor which includes customer age, occupation, gender, marital status, family
position, earnings etc. As conventional food take over modern food changing eating habits,
therefore the convenience food expanded its market with many benefits like efficiency and
comfort (Vijayeta, 2015). A psychological survey on parents by Society for Nutrition
Education and Behavior in 2017 examined motivation factors for purchasing the processed
food. It has been noticed that 57% of the mother and father use because of the time saving
factor. 49% of the parents choose because of their family members like the frozen meals. One
third parents chosen the frozen food so that their children could easily prepare the food and
lastly 27% of the parents chose of the cost saving factor. Convenience is the major factors for
purchasing frozen food. It also helps to minimise energy and time during the preparation of
the food as it is time consuming process. Therefore, women want to minimise this time
during the meal preparation (Ahuja, 2011).
Gender play an important factor as the women and men have unlike thinking style. Demand
and desire for fashion and style does match with each other. Therefore, consumers buying
behaviour is different from one another. Most of the time in homes product purchase decision
is taken by the women. So, while selecting food products gender decision is majorly affected
(Ahuja 2011; Saleem et al. 2017).
Age has become the major factor in terms of buying convenience products. Consumers’
desire, needs and purchase decision making changes as the age grows. Older ones focus on
more on cereals, grain, fruits and vegetables where young ones are more on fast food and
spend much money on their lifestyle and fashion. Daily routine of eating habits is differed in
age group (Drewnowski and Shultz 2001).
People experiment varieties of foods to enjoy them and that bring change in the diet (Foxall,
1993).An adult and child carry different sense of taste (Negri et al., 2012). As we get varied
taste between the conventional home made recipes and ready to eat food (Hawa et al., 2014).
Some customers are money conscious & alert about their spending money. But it is not
always found true, mostly in terms of food utilisation. Some buyers use their money tactfully
see the low price in the items they purchase (Zeithaml, 1988). Buyers who prefer to buy
product on low price does not stick to one and they always try to buy other products (Baltas,
1997). As some consumers take the price tag as the sign of quality standard (Bao et al.,
2011).Consumers perception regarding high price products are always good. A study says
consumer willing to pay high price is to get the best quality products (Cranfield and
Magnusson 2003). Manufacturer of a particular product make it unique so that it can compete
with other products and then branding plays the major role (Vraneševic and Stančec 2003).
3. RESEARCH OBJECTIVES:
1. To estimate the awareness level of convenience food among the consumers of Uttar
Pradesh.
2. To identify various reasons to purchase convenience food
3. To suggest measures received from the outcome of above objectives to convenience
food manufacturer.
Based on the objectives of the study the below hypothesis has been framed.
4. HYPOTHESIS:
H01: Consumers are not aware about convenience food
H1: Consumers are aware about convenience food
H02: Consumers are not aware about the features of convenience food
H2: Consumers are aware about the features of convenience food
H03: Parameters of reason to purchase are not predicted by awareness of convenience
food.
H3: Parameters of reason to purchase are predicted by awareness of convenience food.
H04: Parameters of reason to purchase is not predicted by awareness of features
convenience food.
H4: Parameters of reason to purchase is not predicted by awareness of features
convenience food.
5. RESEARCH METHODOLOGY:
A structured survey tool was used to gather the required response. Coincidental sampling
technique was used to collect data from 600 customers from Lucknow, Agra, Noida,
Prayagraj, Varanasi and some other cities of Uttar Pradesh and also the other states of
India. Data was collected online using Google Form as well as personally received
responses from customers using offline questionnaire.
Factor analysis, Mann-Whitney U test and Kruskal-Wallis was used to prove the
proposed hypothesis.
Frequency table was created to find the demographic profile of respondents. The
demographic variables considered in the current study are Gender, Age, Marital Status,
Present area of residence, Qualification, Occupation, Salary, Type of family, Family size,
Spend on convenience food, Decision on convenience food buying, The details are
displayed in table 1.
Variables Value %
Gender Male 50.4
Female 49.6
Age 18-30 years 29
31-40 years 24.1
41-50 years 23
51-60 years 17.8
Above 60 years 6.2
Marital status Unmarried 63.4
Married 36.6
Present area of residence Lucknow 16.5
Prayagraj 17.3
Varanasi 16.5
Agra 17.8
Noida 17.6
Other City 14.3
Educational qualification Undergraduate 17.8
Graduate 37.3
Post graduate 36.3
Doctorate 8.7
Occupation Students 17.8
Government job 26.5
Private job 28
Business 18.8
Retired 2
Self employed 3
Housewife 4
Annual income Not earning 19.1
Less than 1 lakh 11.6
1-3 lakhs 23.8
3-6 lakhs 25.3
6-10 lakhs 16.1
More than 10 lakhs 4
Type of family Nuclear 70.9
Joint 29.1
Family size Two members 17.3
Three members 30.3
Four members 18.5
Five members 15.5
Above 5 members 18.5
Spend on convenience food Less than or equal to Rs. 1000 20.0
Rs 1001 to Rs 2000 27.0
Rs. 2001 to Rs.3000 30.3
Above Rs. 3000 22.8
Decision on convenience food buying Self 23.3
Spouse 12.6
Children 16.3
Parents 33.9
Friends /relatives 13.8
Table1. Demographic characteristics of respondents
Internal consistency of scales was measured using Cronbach’s alpha scales to measure
awareness = .866scales to identify awareness about features = .872, scales to identify
reason to purchase =.901 which was found to be adequate and in acceptable range. Hence
further exploratory analysis could be performed. For finding factors of awareness of feature,
the results of KMO and Bartlett’s test of sphericity (Kaise-Meyer –Olkin Measure of
Sampling Adequacy: .960; Barlett’s test of Sphericity-significance: .000) and for finding
the factors of reasons to purchase the results of KMO and Bartlett’s test of sphericity (Kaise-
Meyer –Olkin Measure of Sampling Adequacy: .964; Barlett’s test of Sphericity-
significance: .000) As a result, the preliminary conditions of using factor analysis were
considered.
Further Kaiser’s criterion analysis was used for awareness of feature; the scree plot graph
indicated clear five factors solution. The 5 components together account for 82.93% variance.
Items that had eigen value >1 were considered for respective components. The number of
iterations considered was 25. The component matrix uses the factors identified in Kaiser's
criterion. The criterion analysis reflects that the 5 factors show loadings of 0.5 and above.
Based on the findings of the Scree plot, Component Matrix, and Criterion analysis, it was
revealed that 5 factors explain awareness of features.
Kaiser’s criterion analysis revealed reasons to purchase; the scree plot graph indicated clear
four factors solution. The 4 components together account for 74.89% variance. Items that had
eigen value >1 were considered for respective components. The number of iterations
considered was 25. The component matrix uses the factors identified in Kaiser's criterion.
The criterion analysis reflects that the 5 factors show loadings of 0.5 and above. Based on the
findings of the Scree plot, Component Matrix, and Criterion analysis, it was revealed that 4
factors explain reasons to purchase.
The 5 components for awareness of feature are
Component 1: factor awareness about ingredient
Component 2: factor awareness about recipe and nutrition
Component 3: factor awareness about trendy feature
Component 4: factor awareness about reputation
Component 5: factor awareness about easy cook
The normality of data was checked for awareness towards convenience food, awareness of
feature, reasons to purchase by using the K-S test. It was found that the data is non-normal
as displayed in table 2, table 3, and table 4.
It was found that gender and marital status does not create any difference on awareness
towards convenience food. Also awareness towards ready to drink is insignificant for age.
But family type, age, location, qualification, occupation, income creates difference on
awareness towards convenience food. Details are displayed in table 5.
Since most of the demographics showed a difference in the awareness level of convenience
food H01 is partially rejected and H1 is partially accepted.
Marital status does not create any difference in awareness towards features of convenience
food.
Family type also does not create any difference on the parameters of awareness towards
features of convenience food except factor_aware_easycook with the highest mean rank for
Nuclear Family (312.03).
Interestingly age creates the difference in all the parameters of awareness towards features of
convenience food except factor_aware_easycook.
Location and qualification, is another such demographic variable which shows the difference
in all the parameters of awareness towards features of convenience food, except
factor_aware_recipe and nutrition with reference to qualification.
Income does not create any difference in the parameters of awareness towards the features of
convenient food except factor_aware_ingredient, factor_aware_trendyfeature,
factor_aware_reputation.
Interestingly family size does not create any difference in all the parameters of awareness
towards features of convenience food except factor_aware_easycook with the highest mean
rank of 322.81 for a family with 4 members. Displayed in table:6
Grou factor_a factor_aware_r factor_aware factor_awa factor_awa
ping ware_in ecipeandnutriti _trendyfeatu re_reputati re_easyco
Varia gredient on re on ok
ble
Asym Age .000 .002 .003 .001 -----
p.
Sig.
332.03 322.17(18.30yr 317.67(31- 327.63 (18- 310.95(51-
(18.30y s) 40 yrs) 30yrs) 60yrs)
rs)
Asym Locat .000 .000 .000 .000 .020
p. ion
Sig.
401.18 395.62 374.72 403.02 344.07
(luckno (lucknow) (lucknow) (lucknow) (lucknow)
w)
Asym Quali .000 ------ .006 .002 .019
p. Sig ficati
on
337.46 333.16 (post 328.89 347.89
(underg graduates) (undergrad (doctrate)
raduate uates)
s)
Asym Occu .040 ------ .001 .009 ------
p. Sig. patio
n
319.78 357.97 (self 336.84
(self employed) (private
employ job)
ed)
Asym Inco ------ .018 ------ ------ .000
p. Sig. me
316.8 (3-6 414.67(>
Lakhs) 10 Lakhs)
Table 6: differences created by the demographics on awareness towards features
convenience food. Value of grouping variable in braces show highest mean rank
Since most of the demographics showed a difference in the awareness of features towards
convenience food H02 is partially rejected and H2 is partially accepted.
A significant regression equation was found (F(3,597) = 53.31. p <.000), with an R2 of .211.
Participant predicted [reason_purchase_quality affordability referral] is equal to
7.102+0.862(Awareness: ready to use)+0.477 (Awareness: ready to eat) .All the predictors
[Awareness: ready to use] and [Awareness: ready to eat]were significant predictors of
[reason_purchase_quality affordability referral].
A significant regression equation was found (F(3,597) = 56.13. p <.000), with an R2 of .220.
Participant predicted [reason_purchase_follow standards] is equal to
2.660+0.338(Awareness: ready to use)+0.237(Awareness: ready to eat). All the predictors
[Awareness: ready to use] and [Awareness: ready to eat] were significant predictors of
[reason_purchase_convinience].
Looking at the significance of the entire model of Null Hypothesis is rejected and alternate
hypothesis is accepted.
H4: Parameters of reason to purchase are predicted by awareness of features convenience
food.
7. CONCLUSION:
The sampling method used in the current study is coincidental sampling. This sometimes
gives biased results.
1. The survey was conducted during COVID pandemic; therefore perception of
respondents may vary during normal condition.
2. The study area was major focused to Uttar Pradesh state and therefore may not give
similar results when generalized to other states of India.
3. The research design of the current study is cross-sectional. The longitudinal research
on the same population can creates a difference in their demographics might reveal
the exact purchase behaviour of the consumers.
4. The researcher suggest that studies can also be explored on marketing aspect
regarding consumer buying behaviour in convenience food industry and its
management in food safety, hygiene and nutrition etc.
9. VALUABLE SUGGESTIONS FOR MANUFACTURERS:
Respondents have suggested the below information for manufacturers of convenience food.
1. Food safety should be concerned while preparing the convenience food. It should
more of health concern to meet the target consumers. Therefore, a simple idea like
look good and feel good can be best to convince the consumers to buy products.
2. Manufacturers should make healthy food and should use the organic products for
making and as well as for packaging the food. They should adopt a unique marketing
strategy to communicate the information to the consumers.
3. Organic food will keep the body healthy whereas environment friendly packaging will
save the environment.
4. Manufacturers should focus on more and more to add nutritional values of the
products.
5. Products should be more of pocket friendly. Recipe details should be mentioned on
the packet which will help consumers while preparation of the food. Pictures can be
added on the packet to the related food inside the packet. Information like one product
can be made in different style can also be added on the packet.
6. Manufactures can also launch Apps which should provide information regarding the
product. Videos can be uploaded which demonstrate the products. Apps can also show
nearby outlets from where items can be purchased or directly delivered at home.
7. Manufacturers should strictly follow the food safety guidelines made by the food and
health department like HACCP AND FSSAI etc.
.
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