CHAPTER -I

1.1 INTRODUCTION

The study of consumer buying behaviour (CBB) is helpful to the marketers to

understanding and it enables them to know and predict buying behaviour of consumers within
the marketplace; it's concerned not only with what consumers buy, but also with why they pip
out, when and where and the way they pip out, and the way often they pip out, and also how they
consume it & dispose it. According to Professor Theodore Levitt of the Harvard graduate school,
the study of Consumer behaviour is one among the foremost important in business education,
because the purpose of a business is to make and keep customers. Customers are created and
sustain through marketing strategies.
The quality of selling strategies depends on knowing, serving, and influencing
consumers. In other words, the success of a business is to realize organizational objectives,
which may be done by the above two methods. This consumer buying behaviour help to give
knowledge & information about consumers is critical for developing successful marketing
strategies because it‟s helpful for the every marketer to selling their products and services it
challenges the marketers to believe and analyze the connection between the consumers &
marketers, and therefore the consumer behaviour & the marketing strategy.
Consumer behavior is that the study of people ,groups, or organizations and every one
the activities related to the acquisition , use and disposal of products and services, including
the consumer's emotional, attitudes, personality, mental and behavioral responses that precede or
follow these activities. Consumer behaviour emerged within the 1940s and 50s as a definite sub-
discipline within the marketing area. Consumer behaviour is an inter-disciplinary science that
blends elements from psychology, sociology, cultural anthropology, anthropology, ethnography,
marketing and economics, especially behavioral economics.
It examines how emotions, perception, attitudes and preferences affect buying behaviour.
Characteristics of individual consumers like demographics, personality lifestyles and behavioral
variables like usage rates, usage occasion, loyalty, brand advocacy, willingness to supply
referrals, in an effort to know people's wants and consumption are all investigated in formal
studies of consumer behaviour.
 The study of consumer behaviour also investigates the influences, on the buyer; from
groups like family, friends, sports, reference groups, and society generally. It‟s also concerned
with all persons involved, either directly or indirectly, in purchasing decisions and consumption
activities including brand-influencers and opinion leaders. Research has shown that consumer
behaviour is difficult to predict, even for experts within the field.

DEFINITION AND MEANING OF CONSUMER BUYING BEHAVIOUR

Consumer behaviour can be said to be the study of how individual make decision on
how to spend their available resources like time, money, efforts on various consumption
related items. This simple definition of consumer behaviour tells marketers to revolve every
activity around the ultimate consumer and gauge their behaviour by specifically focusing on:

1. Who buys products or services?

2. How do they buy products or services?

3. Where do they buy them?

4. How often do they buy them?

5. When do they buy them? And

6. How often do they use them?

These are the questions help to understanding the definition of consumer buying
behaviour. Consumer buying behaviour defined “The behaviour displayed by consumers in
searching for, purchasing, using, evaluating and disposing of products and services that they
expect will satisfy the their needs.” (Suja, 2010) “Consumer buying behaviour is that the results
of the attitudes, preferences, intentions and decisions made by the buyer s during a market place
before buying a product. The study of consumer buying behaviour is an interdisciplinary
discipline drawing widely from sociology, psychology, anthropology etc.” “Consumer
behaviour includes "all activities associated with the purchase, use and disposal of goods
and services, including the consumer's emotional, mental and behavioural responses that precede
or follow these activities.
 Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a purchase. All
consumer decisions do not always include all 6 stages, determined by the degree of complexity.
The 6 stages are:

1. Problem Recognition(awareness of need)

Difference between the desired state and the actual condition. Deficit in assortment of
products Hunger-Food. Hunger stimulates your need to eat. Can be stimulated by the marketer
through product information--did not know you were deficient? I.E., see a commercial for a new
pair of shoes, stimulates your recognition that you need a new pair of shoes.
2. Information search
Internal search memory. External search if you need more information. Friends and
relatives (word of mouth). Marketer dominated sources; comparison shopping; public sources etc.
A successful information search leaves a buyer with possible alternatives, the evoked set. o
Hungry, want to go out and eat, evoked set is, Chinese food o Indian food
3. Evaluation of Alternatives
Need to establish criteria for evaluation, features the buyer wants or does not want.
Rank/weight alternatives or resume search. May decide that you want to eat something spicy,
Indian gets highest rank etc. If not satisfied with your choice then return to the search phase. Can
you think of another restaurant? Look in the yellow pages etc. Information from different sources
may be treated differently. Marketers try to influence by "framing" alternatives.
4. Purchase decision
Choose buying alternative, includes product, package, store, method of purchase etc.
5. Purchase
May differ from decision, time lapse between 4 & 5, product availability.
6. Post-Purchase Evaluation
Outcome: Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right
decision. This can be reduced by warranties, after sales communication etc. After eating an Indian
meal, may think that really you wanted a Chinese meal instead.
FACTORS INFLUENCING CONSUMER BEHAVIOR
Factor influencing the consumer behavior are internal needs, motives, perception and
attitude as well as external- family, social group, cultural, economic, business influences, etc.
1. Economics Factors
An economics factor of buying behavior is undisplinary it assumes that Consumers are
Economics. When are they following the principle of maximization of utility based on the low of
diminishing Managerial utility? As economic when, consumer evaluations rationally the
alternative in terms of cost and value received. They try to maximize their utility or satisfactory
while spending them scarce resources of time, energy and money.
2. Psychological Factors
Psychology has contributed much to the markets to understand the buyer's psychology
explain how consumers learn about a product and how they can recall from the memory.The
development of buying habits, this includes the following factors:

✓ Motive:

A buying motive is the reason why a person buys a particular product. It is the driving force
behind buying behavior and may be based on psychological or psychological want marketers are
in rested in patronage motives such as store loyalty and brand loyalty.

✓ Learning:

Learning refers to changes in behavior brought about by practice or experience. Almost

every timing one does or timing is learned product features such as price quality services, brand,
packing, etc. Act as hints influencing consumer's response.

✓ Attitude:
Attitude is a state of mind of fillings it includes as per disposition to behave in source way. Attitude core
very important in explaining buyer's behavior. A change in attitude leads to changes purchasing attitude
and modify buyer behavior knowledge of consumer attitude can product redesigning packages and
developing and evaluating promotional programs.
✓ Personality:

In general perception attitude belief lead collectively to a consistent response by the

Individual to his environment. This consistent pattern or behavior is termed as personality. Its
primary teachers are self-concept role and level of consciousness.
3. Social Factors
This includes the following factors:

✓ Family:

Most consumers belong to a family group. The family can exert considerable influence in
Shaping the pattern of consumption and indicating the decision making role personal Value
attitude and buying habits have been shaped by family influences.

✓ Reference Group:

The small group to which the buyer belongs in fluence buyer behavior. A human being is
Considering as a social animal spending much of his or her life in group situation, group norms
direct attention of its member to a new style of a product.

✓ Social Class:

As a predictor of consumption patterns marketing management is familiar with social

classes consumers, buying behavior is determined by the social class to which they espiers rather
than by their income belong. Proudly speaking we have distant social classes' upper, middle and
lower classes usually stress rationality, exhibit sense of choice making whereas consumers of
lower classes have essentially no rational purchases and show limited sense of choice making.
4. Cultural factors:
Culture, subculture & social class are primary important in buying behavior.
✓ Culture: -
Culture, is the most fundamental determinant of a person's wants and behavior. The
growing child acquires a set of values, perceptions, preferences and behaviors through his or her
family and other key instructions.
✓ Sub-culture:-
Each subculture consists of smaller subculture that provides more specific identification
and socialization for their members. Subculture includes nationality, religion racing groups and
geographic regions.
 1.2 OBJECTIVES OF THE STUDY

 This project is based on the study on consumer buying behavior towards aavin

 The Main objective of the study is to know the consumer purchase towards behavior

 To analyze the customers satisfaction level towards Aavin dairy products.

 To study the consumer taste and preference of aavin diary products.

 To identify the customer satisfaction level on Aavin dairy products.

 To identify the buying Affordability of consumer in Aavin dairy product

1.3 SCOPE OF THE STUDY

As learning is a human activity and is as natural, as breathing. Despite of the fact that
learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How
individuals learn is a matter of interest to marketers. They want to teach consumers in their roles
as their roles as consumers.
They want consumers to learn about their products, product attributes, potential
consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving
that will satisfy not only the consumer needs, but the marketersobjectives.The Scope of My study
restricts itself to the analysis of consumer buying behavior, with special reference from aavin.
The scope of my study is also restricts itself to Warangal region only. And the study depends on
psychological aspects and the opinions may differ from one consumer to another.
1.4 COMPANY PROFILE

INTRODUCTION

The Salem District Cooperative Milk Producers Union, commonly referred to as Salem
Aavin, was established in 1978. It operates under the broader umbrella of the Tamil Nadu
Cooperative Milk Producers' Federation (Aavin) and has been instrumental in the procurement,
processing, and distribution of milk and dairy products in the Salem region since its inception.

Salem Aavin has grown to become a significant contributor to the dairy industry in Tamil
Nadu, known for its high-quality milk production and efficient supply chain operations. The union
collects milk from a large network of local dairy farmers, processes it, and distributes it across
Salem and neighboring regions. This not only supports the local economy but also ensures the
availability of fresh and nutritious dairy products to the community.

Background and Significance

The dairy industry plays a crucial role in the agricultural economy of Tamil Nadu,
providing livelihoods to millions of dairy farmers and contributing significantly to the state's
economy. Among the key players in this sector is the Tamil Nadu Cooperative Milk Producers'
Federation Limited, popularly known as Aavin. Established in 1958, Aavin has been pivotal in
enhancing the dairy sector by ensuring fair prices for farmers, improving milk quality, and
providing a wide range of dairy products to consumers.

 To assess the operational efficiency of Salem Aavin in milk procurement, processing, and
distribution.
 To evaluate the socio-economic impact of Salem Aavin on the local dairy farmers.
 To identify the challenges faced by Salem Aavin and propose recommendations for
overcoming these challenges.
 To analyze consumer perceptions of Salem Aavin‟s dairy products and their market
competitiveness.
 Established under the Tamil Nadu Co-operative Milk Producers' Federation (TNCMPF), it
plays a key role in dairy development and milk processing in the region. The union collects,

processes, and distributes milk and dairy products such as curd, butter, ghee, and various flavored
milk varieties.

Salem Aavin supports thousands of dairy farmers by ensuring fair prices and providing
veterinary services, cattle feed, and training programs. Its network includes milk collection centers,
chilling plants, and processing units equipped with modern technology to maintain high-quality
standards.

The union has gained popularity due to its emphasis on product quality, customer
satisfaction, and transparency in operations. Salem Aavin‟s products are widely distributed
across Tamil Nadu, ensuring a reliable supply of fresh and nutritious dairy items. Its commitment
to rural development and farmer welfare makes it a vital contributor to the state‟s dairy industry.

GROWTH RATE

Production Growth: Salem Aavin has consistently increased its milk production capacity,
often attributed to improved procurement from local dairy farmers.
Market Expansion: The brand has expanded its market reach within Tamil Nadu,
particularly in the Salem region, by increasing the number of retail outlets and enhancing
distribution networks.
Revenue Increase: There has been a steady growth in revenue due to the increased sales of
milk and value-added dairy products.
Product Portfolio Expansion: Introduction of new dairy products like flavored milk, yogurt,
and sweets has contributed to the growth rate.
Government Support: Growth is also supported by state government initiatives aimed at
boosting the dairy industry, including subsidies and infrastructural investments.
Sustainability Initiatives: Adoption of sustainable practices, such as eco-friendly packaging
and energy-efficient production methods, has enhanced Salem Aavin's growth by attracting
environmentally conscious consumers.
  Milk Sales
In 2017-18, Aavin's average milk sales increased by 4.5% from 2016-17, Reaching 10 liters per
day (LLPD). In 2023, Aavin's milk sales increased to over 15 LLPD in Chennai and 7% outside
the city.
 Milk Procurement
In 2020, Aavin procured about 4,00,000 liters of milk per day, but in October 2023, the average
procurement from farmers was over 2,83,900 LLPD. However, government data shows that Aavin
only procures 12% of the milk produced in the state.
 Milk Product Sales
In April 2024, Aavin saw increases in sales of curd, buttermilk, ice cream, milkshakes, and kulfi.
 Annual Turnover
In 2019-20, Aavin reported an annual turnover of ₹5,800 crore.
Aavin also periodically revises the prices of milk procurement and sales to ensure that milk
producers are paid fairly and that consumers can buy milk at reasonable prices.

IMPORT
Milk Procurement & Processing: Salem Aavin is currently enhancing its milk processing
capabilities due to an increase in milk production in the Salem and Namakkal regions. The Salem
dairy's capacity is being expanded from 5 lakh liters per day (LLPD) to 7 LLPD with an investment
of ₹140 crore. This expansion is part of a broader effort across Tamil Nadu to boost overall
processing capacity
Product Output: The Salem plant is also focusing on increasing milk powder production
due to high demand. The production is being scaled up from 10 metric tonnes to 30 metric tonnes
Welfare Measures for Farmers: To support dairy farmers, Salem Aavin has been involved
in initiatives like offering cattle loans worth ₹210 crore to ensure stable milk supply. The
organization has also increased milk procurement prices to attract more farmers
Investment Plans: Aavin's overall strategy includes significant investments across its plants
to not only meet rising demand but also improve product variety, such as increasing ice cream
production capacity at other locations like Trichy
EXPORT
Resumption of Exports: After a hiatus of 10 years, Salem Aavin has resumed the export of
its dairy products. This includes milk and milk-based products like milk powder and ghee, which
are now being exported to countries like the United Arab Emirates, Oman, Qatar, and the United
States

Export Agreements: Salem Aavin has entered into agreements with several international
vendors to facilitate the export of its products. These agreements are expected to generate
significant revenue and increase the brand's global presence .
Product Focus: The primary products being exported include milk powder, ghee, and other
milk- based products, which have seen increasing demand in overseas markets.
Revenue Goals: Through these export activities, Salem Aavin aims to earn approximately ₹6
crore per year, contributing significantly to the overall revenue of the Tamil Nadu Cooperative
Milk Producers‟ Federation.

TABLE FOR COMPANY PROFILE

Category Details

Company Name Salem Aavin

Type Cooperative Milk Producers Union

Established Year 1978 (under Tamil Nadu Dairy Development Corporation)

Headquarters Salem, Tamil Nadu, India

Industry Dairy and Food Processing

Core Products Milk, Ghee, Butter, Curd, Paneer, Ice Cream, Flavored Milk

Ownership Government of Tamil Nadu

 Production Capacity Over 5 lakh liters of milk/day

Service Areas Tamil Nadu and other Indian states

Key Departments Production, Quality Control, Human Resource, Sales &

Marketing

Certifications ISO, FSSAI

Social Initiatives Farmer Welfare, Rural Employment

Website https://aavin.tn.gov.in

Official Address The General Manager, Salem District Cooperative Milk

Producers Union Ltd., Sithanur, Thalavaipatty (PO), Salem-
636 302.
Email aavinslm@gmail.com

MISSION AND VISION

Our Vision
 To march forward with a missionary zeal this will make Aavin a trailblazer of exemplary
performance and achievements beckoning other Milk Federations in the country in pursuit of total
emulation of its good deeds.
 To ensure prosperity of the rural milk producers who are ultimate owners of the Federation.
 To promote producer oriented viable co-operative society to impart an impetus to the rural income,
dairy productivity and rural employment.
 To bridge the gap between price of milk procurement and sales price.
 To develop business acumen in marketing and trading disciplines so as to serve consumers with
quality milk, give a fillip to the income of milk producers.
 To compete with MNCs and Private Dairies with better quality of milk and milk products and in
the process sustain invincibility of co-operatives.
Our Mission
“Heralding economic, social and cultural prosperity in the lives of our milk producer members by
promoting vibrant, self-sustaining and holistic co-operative dairy development in Tamil Nadu
State”

1.5 STATEMENT OF THE PROBLEM

In the busy world of ours, each human being is running like a machine. It could be the
influence of the variable price brand image, quality of the product and regularity of service. The
success of the milk product depends not only on the price but also the customer satisfaction towards
their product.
It‟s necessary to know the customer buying behaviour towards packaged milk of its
availability, acceptance and affordability. Since the time a person gets up from his bed till he goes
to sleep, milk plays a key role.
Therefore for any company, the customer is the primary point that control very progress.
Marketing is based on this logic. It is processed by which a company finds out what its customers
wants and needs, and then delivery it in a way that makes as much profit as possible. The study is
to identify the customer service towards AAVIN MILK PRODUCTS. This study focus on primary
data and secondary data. This study aims towards knowing the customer opinion about the AAVIN
milk products.
This study will help us to understand the customer satisfaction level and their
expectations and their performance.
 1.6 LIMITATION OF STUDY

 Some of the respondents did not take time to fill the questionnaire.

 The sample size used for the research is less

 Time constraints was major limitation the time limit is one of the main factors to conduct the study

effectively.

 The data collection is applicable in salem only.

The time period of research was restricted to limited days.

 The different views and opinions provided by the respondents were Subject to Personal bias.

 The respondents may not be true in filling up the questionnaires.

1.7 SCHEME OF CHAPTERIZATION

The study is presented in five chapters. The brief contents of these are as follows:

CHAPTER I

Deal with the introduction consumer buying behavior, stage, factors influenging consumer buying

benaviour, Objectives of the study, Scope of the study, company profile, statement of the problem,

Limitations of the study, Scheme of Chapterization.

CHAPTER II

Discussed about the review of literature.

CHAPTER III
This chapter dealt with Research Methodology.

CHAPTER IV

Data Analysis, Result and interpretation

CHAPTER V

This chapter presents the summary of findings of the study and draws an overall conclusion.

Further suggestions were also made for the consumer buying behavior.

BIBLIOGRAPHY

This portion of the research mentions the list of the referred websites, and articles used

as study material.

ANNEXURE

Questionnaire.
 CHAPTER -II
REVIEW OF LITERATURE

2.1 INTRODUCTION
A brief literature would be immense help to the researcher in gaining insight in to selected
problem. The researcher would gain good back ground knowledge of the problem by reviewing
certain study. A reference to this entire study will be related in the contest of the shaping of the
current study.

2.2 REVIEW OF LITERATURE

I have conducted a research on the customer preference towards dairy products.the study
made an attempt to identify the customers „s perferences towards dairy products and to known
about factors which influenced the selection of different brands of dairy products .the study
revealed that the company should make a survey to know the expectations of the consumers and
produces that the products in the manners so as to attract more customers towards mass media to
increses sales and to educate customer about the products
1. Avinash and Sangvikar (2019)Their objective is to provide insight about D-Mart success in
India and their conclusion is D-Mart techniques and strategies it uses for cost efficiency and higher
sales and D-Mart has restricted segmentation, this made D-Mart more profitable.(Avinash Pawar
and B.V Sangvikar, NIDA – ICCS 2019)
2. Ansari Arbaaz (2019) It has positioned itself in the market as discounted store. Youth likes
shopping and moving around D-mart It has emerged as a hub of shopping specially for middle
class people He used Hypothesis Test to choose factor for most while purchasing in his study.
3. Muragan and Fermi (2018), Their survey is based on consumer behavior to determine when,
how, hy, what brands and where people will buy products in the Tirunelveli region of TamilNadu.
Investigate consumer perceptions of motorcycle quality assessment. Identify key factors
thatinfluence consumers' decision to buy a motorcycle. When examining customer satisfaction
with motorcycles, there are four main factors that influence.
4. Guruprasad (2018), Director research, Universal Business School Concluded There was 50
50 opinion from customers of Badlapur and Karjat about online offering D-mart products and D
marts mainly faces the competition from small shopwhich deal in single variety of commodity.
(M. Guruprasad, Director research, ISSN No:-2456-2165 (2018),research gate net)

5. Savitha [2017], “A study on consumer preference towards „AMUL PRODUCT‟ in Madurai

city”. International Journal of Current Research and Modern Education, Volume 2, Issue 1, pp.
41-46. Anu jose (2016) her study revealed that today's ecological problems are severe, that
corporations do not act responsibly toward the environment and that behaving in an ecologically
favorable fashion is important and not inconvenient.

6. Sonali Dhawan(2016), has studied on Consumer Behaviour towards Various Branded and
Non-Branded Milk with Special Reference to Jabalpur District in Madhya Pradesh. The study
found that In Madhya Pradesh, the consumption of unbranded milk is popular people generally
prefer unbranded milk rather than branded milk because of freshness. Ahi

7. Ramya & Mohamed Ali (2018) has studied on consumer buying behaviour towards Amul
products with special reference to Coimbatore city. The study found that 80% of the respondents
knows through advertisement about Amul product, 36.67% of the respondents makes preference
by price offers and 38% of the respondents buy Amul products in retail shop for Daily use.

8. Ahila ,Boopathi (2015) has studied on Consumer Behaviour on Aavin Milk and Dairy Products
in Pollachi Taluk of Tamil Nadu. The study found that Majority (36%) of the respondents are
between the age group of 21-30 years, the Majority (42%) of the respondents were graduates, the
respondents who‟s earning range between Rs. 10,001 to Rs.25, 000 and Majority (86%) of the
respondents are satisfied with quality of Aavin products.

9. Sonali Dhawan(2016) has studied on Consumer Behaviour towards Various Branded and
Non-Branded Milk with Special Reference to Jabalpur District in Madhya Pradesh. The study
found that In Madhya Pradesh, the consumption of unbranded milk is popular people generally
prefer unbranded milk rather than branded milk because of freshness.
10. Jothi mary conducted a study on consumer behavior of aavin .the study on consumer
behaviuor of aavin .the study focused on consumer behaviour is a sunset of consumer behaviour
,which is concerned with decision that leads up to the act of purchase .it could be the influence of
the variable price brand image ,quality of the products regularity of services .the study attempts to
bring out the factors leading to the purchase behaviour and pereception of consumer in buying
aavin milk . the consumers are satisfied with quality of aavin brands .

11. Rangasami and Dhaka (2003) undertook a comparative on marketing efficiency of dairy
products for co-operative and private dairy plants in tamilnadu .their study aimed at comparing the
marketing of milk and products by dairy plants of co operative and private sector in tamilnadu .it
was found that the marketing cost for toned milk was same in both the dairy plants ,whereas it was
higher for other milk in the co-operative dairy plants ,except for toned milk.hence,the marketing
efficiency of co-operative dairy plant for all dairy plant ,except .

12. Daniel Kahnman’s paper (2003) presents over three decades „Nobel-prize winning research
exploring the concept of „blounded rationality ,-in the way in which descision diverge from those
predicted by rational choice theory .it focuses largely on “cognitive economics‟ (it does, not for
example ,consider the impact of social norms on decision –making ).but provides a comprehensive
summary of many of behavioral economics most well-researched phenomena

13. Jackson’s 2005 review of cconsumer behaviour remains perhaps the most comprehensive and
accessible and the foundation on which the majority of the more recent reviews has largely been
based.the reports sets out in an accessible way the main drivers of behaviour and theorical models
that attempt to expain.it and do so with consistent critique of national choice

14. Boopathi.b(1999) india is the world largest dairy producers.indian dairy sector has grown
substantively over the year ,dairy products demand in india has increased dramatically in both
ruraland urban sectors .howerevers as a larger population is migrating from rural areas to
cities,thus,creates greater demand for dairy products .tamilnadu state is the one of the ten largest
milk producing states in india,in the state ,the major milk contributors is aavin ,a tamil nadu based
milk producers ,union ,producers milk ,processes it and sells milk and milk products to aavin.
15. navin venkataprasana 2003 carried out a a study on customer stratification rate towards aavin
milk in shollinganellore.the non probability conveniences sampling was adopted to draw a sample
of 150 respondents .the study focused on ascertaining consumer preferences in purchase of aavin
brand of milk and analyzing the perceived differences of various brands of milk on key attributes
and also identifying measures for improving customer satisfaction.purity,taste,thickness Attributes
like availability ,price and services of agents were also rated good.

16. Kotler and Armstrong (2004) [35] gave a classification that consists of four elements that
influence the customers buying behavior and those are cultural factors, in other words, cultural,
sub-cultural, social status. Social factors for instance family structure, reference group, etc.
personal factors such as family life cycle, age of the family members, economical position,
lifestyle, preference, choice, etc. Lastly, psychological factors and those are self-concept,
motivation, education, etc.

17. Kosiciarova, Nagyova, and Holiencinova (2017) [36] stated that the consumption of milk
and dairy products in developed countries is more (around 300 kg per capita) than in developing
countries.

18. Rozenberg, Body, Bruyere et al. (2016) [20] states that so many countries have nutritional
suggestions for around three portions of milk or dairy products every, day for instance, 1 cup of
milk, 1slice cheese, and 1 bowl of yogurt.

19. Hatirli, Ozkan, and Aktas (2004) [4] said that milk and products made out of it are extremely
nutritious for the human body because it contains almost all the important and unavoidable
nutrients.

20. Bongard, Ruidavets, Simon et al (2012) [1] the consumption of milk is associated with the
reduction of risk of death no matter what the main reason is, for instance, unbalanced diet, age,
any type of health problems learning as well as social and economic status. Each and every people
play the role of a customer who purchases different goods and services on an everyday basis for
satisfying their own requirements and desires. Still, companies need to keep in mind the only
buying a product does not change the consumer‟s behavior there are other factors as well.
 CHAPTER-III

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve research problem. Research

methodology is understood as a source of the study how to research is done scientifically. The
various steps adopted by a researcher in studying the research problem along with the logic. The
project work entitled "A study on consumer buying behaviour salem district cooperative milk
producers union ltd.

4.1 Research Design

The research design constitutes the blue print for the collection, measurement and analysis
of data. There are types of research design; they are exploratory research design, experimental
research design and describe and descriptive research design. The research had adopted descriptive
research design for the study.

Descriptive Research

Descriptive research is conclusive in nature, as opposed to exploratory. This means that

descriptive research gathers quantifiable information that can be used for statistical inference on
your target audience through data analysis. As a consequence this type of research takes the form
of closed-ended questions, which limits its ability to provide unique insights. However, used
properly it can help an organization better define and measure the significance of something about
a group of respondents and the population they represent.

4.2 Sample Design

A sample is a subset from the total population. It refers to the techniques or the procedure
to the research would adopt in selecting items for the sample (i.e) the size of the sample.

DETAILS OF POPULATION

The study was conducted on the consumer a study on consumer buying behavior salem
district cooperative milk producers union ltd.
POPULATION FRAME

The data was collected from the customer.

SAMPLING SIZE

This includes the list of 110 respondents (refer to the analysis of data).

4.3 SAMPLING METHOD

Sampling method utilized was convenience sampling was adopted.

METHODOLOGY OF THE DATA COLLECTION

A descriptive research was undertaken to the study of the problem. The study is descriptive
in nature. Descriptive research is those which are concerned with describing the characteristics of
a particular individual of a group. The descriptive research describes the demographic the
characteristic of the respondents and is typical concern with determining frequency with something
occurs how the variables vary together.

SOURCES OF DATA

Primary Data:

It was collected through questionnaire further this data, are processed and tabulated using
graphs the tables where analyzed and the finding has been drawn accordingly.

Secondary Data:

It refers to a special kind of ratio, it is used to make comparison between two or more series
of data, since the percentage reduce everything to a common base and there by allow meaningful
comparison be made.
4.4 TOOLS USED FOR RESEARCH

 Correlation

 Chi Square test

 T – test

SIMPLE PERCENTAGE METHOD

Percentage refers to a special kind of ratio making comparison between two or more data
to describe relationship between the data. Percentage can also be used to compare the relative
terms, the distribution of two or more series of data.

FORMULA

No. of respondents

Simple percentage = .................................................................. 100

Total No. of respond

CHI-SQUARE TEST

It is one of the simplest and widely used non parametric test in statistical work. The quantity
chi-square describes the magnitude of the discrepancy between theory and observation.

This is defined as,

Σ (Oi-Ei)2

Chi – Square = ……………………..

Ei

Oi = Observed frequency

Ei = Expected frequency

In general the expected frequency for any can be calculated from the following equations
 RT X CT

E = ………………….………..

E = Expected frequency,

RT = Row total,

CT = Column total,

N = Total number of observations.

The calculated value of chi-square is compared with the table value of chi-square given
degree of freedom of a certain specified level of satisfaction. If at the stated level the calculated
value of X ^ 2 is more than the table value of X ^ 2 the difference between theory and observation
is considered to be significant otherwise it is insignificant.

CORRELATION:

The correlation coefficient r is a measure of the linear relationship between two attributes
or columns of data. The correlation coefficient is also known as the Pearson product-moment
correlation coefficient.

The value of r can range from 1 to +1 and is independent of the units of measurement. A
value of r near 0 indicates little correlation between attributes; a value near +1 or-1 indicates a high
level of correlation.

When two attributes have a positive correlation coefficient, an increase in the value of one
attribute indicates a likely increase in the value of the second attribute.

A correlation coefficient of less than 0 indicates a negative correlation. That is, when one
attribute shows an increase in value, the other attribute tends to show a decrease.
Consider two variables x and y:

 If r = 1 then x and y are perfectly positively correlated. The possible values of

x and y all lie on a straight line with a positive slope in the (x, y) plane.

 If r = 0 then x and y are not correlated. They do not have an apparent linear
relationship. However, this does not mean that x and y are statistically
independent.

 If r = - 1 then x and y are perfectly negatively correlated. The possible values of

x and y all lie on a straight line with a negative slope in the (x, y) plane.

Correlation coefficient formula

ΣΧΥ

R =………..………………………..

√ (ΣX2) (ΣY2)

T- TEST

A t-test is a statistical test used to compare the mean of a sample to a known value
(one-sample t- test) or compare the means of two groups (independent or paired t-
tests). It helps determine whether the observed differences are statistically significant
or occurred by chance

 T-value: Measures the difference relative to variability in data.

 Df (degrees of freedom): Reflects the sample size.
 P-value (Sig.): If p < 0.05, the result is statistically significant, meaning
there‟s a meaningful difference.
 Confidence Interval (CI): Indicates the range in which the true mean difference
likely