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CONSUMER BUYING BEHAVIOUR OF BISCUIT IN DIBRUGARH TOWN WITH SPECIAL REFERENCE TO SOUTH AMOLAPATTY AREA, DIBRUGAH

A project report submitted to Dibrugarh University in partial fulfillment of the Requirement for the Bachelor Degree in Commerce with Specialization in Marketing.

SUBMITTED by:Shri Bhaibyajit Borgohain Roll No.

Regn. No. 09000930 D.H.S.K. COMMERCE COLLEGE Dibrugarh (Assam) 2010-2011

CHAPTER 1 INTRODUCTION
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The term consumer can be described as a person who acquires goods and services for self satisfaction and is often used to describe two different kinds of consuming entities: the personal consumers and organizational consumers. The personal consumers buy goods and services for his/her own use. In this context, the goods are bought for final use by individual. Thus consumer buying behaviour is defined as the behaviour that consumers display in searching for purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. Consumer behaviour focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumption related items. That includes what they buy, why they buy, when they buy it, where they buy it, how often they buy it for purchase and the impact of such evaluations on future purchases, and how they dispose it off. As a consumer we are all unique and this uniqueness is reflected in the consumption pattern and process of purchase. The study of consumer behaviour provides us with reasons why consumer differs from one another in buying/using products and services. The study of consumer behaviour
towards any products is an important area of study for all companys/ producer/ manufacturer/ marketer in the field of marketing. Such a study help to understand what is going on in the market & how the consumer act in the process of consuming or using products. It emphasis on the present as well as the future demands of products or services which are available in the market. Biscuit is one of the most common purchases that an Indian household make. It has become one

of the most loved fast food products for every age group. Biscuits are eaten by all sections of people throughout the year. Biscuits are easy to carry, tasty to eat and reasonable at cost. They are, thus, mass consumption items with number of varieties and shapes. Market for biscuits is scattered all over the country. Urban and semi-urban markets are dominated by many national and regional brands but even then many local manufacturers are doing a good business as their products are fresh, they offer many varieties and they are cheaper. The main purpose of this study is
to know the behaviour of consumer in buying biscuits. From this study we will able to find out the

various factors that determines the choice of consumers regarding biscuits. As there are many
companies manufacturing biscuits, it difficult to know the thinking of customer on whether, what, how, and from whom to purchase the biscuit. Therefore, research is required to examine the customers

perception towards biscuits. So the problem is to identify what are the criteria that prospective

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customer takes into consideration before buying biscuit. Also after purchasing are customers being satisfied or not?

1,1 - Objectives of the study:1. To study the behaviour of consumer in buying biscuits. 2. To find out the various factors that determines the choice of consumers regarding biscuits. 3. To examine the customers perception towards biscuits. 1.2 - Scope This study is confined to South Amolapatty area of Dibrugarh. It is aimed to study the behaviour of the customers in buying biscuits. The project analyzed the demographic, psychographic and buying characteristics of the customers in buying the biscuit. It includes the detailed study of customers focusing on the various parameters that lead to identifying and understanding the perception of the customer in buying biscuits. 1.3 - Profile of the study area: About the district (Dibrugarh): Dibrugarh is situated on the banks of the Brahmaputra River, in Upper Assam, India, about 435 kilometres north east of Guwahati. It is the gateway to the three tea producing districts of Tinsukia, Dibrugarh, and Sibsagar. These three areas account for approximately 50% of India's Assam tea crop and thus Dibrugarh is rightly named as the Tea City of India. Oil and Timber are the other big two industries in and around Dibrugarh. The town is well connected with all the rural
areas and easily reachable by the consumers from different parts of the district and town.

As par 2001 India census, Dibrugarh had a population of 102,523. Males constitute 54% of the population and females 46%.Dibrugarh has an average literacy rate of 81%, higher than the national average of 59.5%: male literacy is 82% and, female literacy is 80%. In Dibrugarh, 9% of the population is under 6 years of age. Dibrugarh is part of Dibrugarh Lok Sabha constituency.
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South Amolapatty: Amolapatty is a very crowded place in dibrugarh town. To the south it is South Amolapatty area with a population more than 1000 where the study is made. The area is close to the bank of Brahmaputra River. This area has been taken due to the fact that different classes of consumers in respect of economic status, lifestyle, literacy level, religion, language etc are found in this area. This enables the study to be wide and not dependent on a set class of people. 1.4 - Methodology:The relevant information and data for the study have been collected from various primary and secondary sources. Secondary data are collected from various websites, books etc. and the shops of the study area are also visited for the purpose. For primary data a series of field works has been carried out in the selected area, i.e. South Amolapatty of Dibrugarh. A questionnaire was prepared on the basis of the objectives of the study.

Questionnaires were distributed to 50 households in the selected area in a random basis. Data thus collected has been tabulated and analyzed.
For data presentation bar diagrams, graphs, tables are used and for data analyses simple statistical tools like simple average, percentage etc. are used.

1.5 - Limitations of the study All the research projects are hindered in their smooth flow by some unforeseen problems. The problems arise in the form of constraints by budget, time and scope of the study. The current project was also faced by certain problem. Some of the problems faced in the course of the research are as follows: A strong unwillingness on the part of the consumers to participate and aid the research. The boredom and wavering concentration that set in among the respondents while answering the long questionnaire: thus in turn led to the difficulty of preventing incomplete questionnaires. Sampling error: the research include a sample size of 50 customers which is not sufficient
to reflect a conclusive decision about the buying behaviour for biscuit.

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The

study

was

limited

to

the

geographical

region

of

SOUTH

AMLAPATTY,DIBRUGARH. Shortage of time is also reason for incomprehensiveness.

1.6 - Significance of the study:The consumer science is largely used by marketer to find out whether a particular product will be purchase by consumer or not. In competitive environment one cannot thrust a product on consumer. He has to produce what is demanded or what can be demanded. By studying consumer behaviour a marketer can find out what can be sold and what goods or services are likely to be rejected. There are number of importances of this study which are as follows:1. Save from disaster: - The failure rate of new products is surprisingly high not only in highly competitive economies of USA, Europe and Japan etc but even in India. This study will help the new comers of biscuit industry/marketers in avoiding disasters. 2. Helps in formatting right marketing strategy: -By knowing what factors influence the demand of biscuit, a producer can produce accordingly and marketing strategies can be framed. 3. Helpful in sales promotion: -Through the study of consumer behaviour we will able to know correctly the factors which influence buying decisions of the consumer. This will help the biscuit producers/distributors to promote sales of existing or new products. 4. Development of new products: -Before launching a new product proper study of consumer tastes i.e. behaviour avoids later failure and loss. This is particularly true for food items and daily consumption product. 5. Product orientation is helped: -The study of consumer behaviour helps to find out why consumers are drifting away from a product or why they are not liking it. In this instance a new flavoured biscuit can be developed or reoriented by the biscuit manufacturers to capture the market. 6. Segmentation of market can be done: - The study of consumer behaviour suggested that everyone does not buy on price consideration or utility consideration only. Thus this study will be helpful for biscuit manufacturers/market intermedieries in segmenting their market.
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7. Helps consumers to study their behaviour: -The consumers often are guided by their income, emotions, opinion of others and they do not undertake the study of their behaviour whether it is scientific or not. The science however can help them to study cost benefit of their buying decision. The study can reveal them whether buying an expensive item is rational or not.
1.7 - CHAPTERISATION SCHEME: The project contents have been organized in the following chapters: CHAPTER 1: The first chapter contains introduction of consumer behaviour and biscuit, objectives of the study, scope of the study, methodology, limitation and significance of the study. CHAPTER 2: The second chapter includes a profile of Biscuit industry and consumer behaviour in India. CHAPTER 3: The third chapter contains the analysis and interpretation of the data collected from respondents. CHAPTER 4: The fourth chapter contains the summary of the study, major finding, problems, suggestions and conclusion of the study.

References: WEBSITES: en.wikipedia.org, www.foodbizdaily.com,

www.business.mapsofindia.com, BOOKS: Modern Marketing, Principles and practices Fourth Revised Edition. S. Chand & Company Ltd, by R.S.N. Pillai and Bagavathi; Consumer Behaviour in Indian context, Second revised Edition 2008, S. Chand &Company Ltd., by Dr. P.C. Jain and Monika Bhatt

CHAPTER 2

A profile of Biscuit industry and consumer behaviour in India


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2.1 - A profile of Biscuit industry The biscuit Industry in India accounts for a total turnover of Rs.3000 crores. India is considered to be the third largest biscuit manufacturer in the world only after USA and China. India's biscuit industry is categorized into the organized and unorganized sectors. Bread and biscuits are the major part of the bakery industry and covers around 80 percent of the total bakery products in India. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production. Though bakery industry in India has been in existence since long, real boost came only in the later part of 20th century. The contributing factors were urbanization, resulting in increased demand for ready to eat products at reasonable costs etc. In India States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits. Nearly 55% of the biscuits are consumed by rural sector. The higher consumption of biscuits in rural area could be attributed to its position as a snack, longer shelf life and better taste which is liked by different cross sections of population. There is no marketing problem as every shop may be a market for wafer biscuits. The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to 18.95 lakh tonnes in 1990. Biscuits contributes to over 33 percent of the total production of bakery and above 79 percent of the biscuits are manufactured by the small scale sector of bakery industry comprising both factory and non-factory units. The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of the entire bakery production. Few years back, large scale bakery manufacturers like cadbury, nestle, and brooke bond tried to trade in the biscuit industry but couldn't hit the market because of the local companies that produced only biscuits.

Summary of Indian Biscuit Industry:

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The total production of biscuits in India is estimated to be around 30 lakh MT, the organized sector accounts for 65% and the unorganized sector accounts for 35% of the total industry volume.

The organized sector is valued at above Rs 8000 crores. The biscuit industry is estimated to grow over 15-17% in the next few years. The per capita consumption of biscuits in India is 2.0 kg. India is ranked 3rd after US and China amongst the global biscuits producers. The export of biscuits is approximately 17% of the annual production, the export of sweet biscuits for year 2007-08 was Rs 145.93 Cr and for year 2008-09(April-Dec) was Rs 280 Cr, the major exporting regions were Haiti, Angola, USA, Ghana, UAE.

The imports are not significant amount as compared to the total consumption. The penetration of biscuits in urban and rural market is 85% and 55% respectively. The Biscuit industry employs almost 3.5 lakh people directly and 30 lakh people indirectly.

The organized biscuit manufacturing industries annual production is in the table below: Table 2.1 Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 12.54 14.29 16.14 17.14 19.5

Annual Production(Lakh MT) 11.00

Main Categories of Biscuits: Glucose, Marie, Sweet, Salty, Cream & Milk. Glucose biscuits accounts for more than 50% of the total biscuit market value, Parle G dominate this market with more than 60% share followed by Britannia and ITC. Top brands in India: The Indian biscuit market has quite a few dominant players who have managed to establish a strong customer base over the years.

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Major brands: The Indian biscuit industry is dominated by major brands like Parle, Britannia, and Sunfeast. Also the category has strong regional brands such as Priya Gold-North, CremicaNorth & West, Dukes-South and Anmol,-East & North. Other popular brands: Horlicks, Biskfarm-East, Rose-Andhra Pradesh & South, Sobisco-East and North East also launched in Andhra Pradesh and Madhya Pradesh., Nezone- North East, Bakewell. Britannia Industries Ltd Based in Bangalore Britannia Industries Ltd is reputed as being one of the top biscuit brands in India. The company was established way back in 1892 and till today has managed to maintain a distinctive position in the Indian biscuit industry specially with its most popular brand called Tiger. Britannia holds a 38% market share in the biscuit industry in India. Some of the famous biscuit brands offered by Britannia include; Good Day, Timepass, Bourbon, 50-50, Treat, Milk Bikis, Marie Gold, NutriChoice, Little Hearts etc. Key Products: Tiger, Good Day, Bourbon, 50-50, Treat, Milk Bikis, Marie Gold, NutriChoice, Timepass, Little Hearts Parle Products Pvt. Ltd Founded in 1929, Parle Products Pvt. Ltd ranks among the top biscuit brands in India. The company has 7 manufacturing units of its own and 51 manufacturing units on contract. Accounting for about 30-35% of market share in the biscuit industry this company is famous for brands like Parle - G , ,Krackjack ,Hide & Seek Milano,Hide and Seek, Magix and Monaco Key Products : Parle - G , Hide and Seek ,Krackjack ,Hide & Seek Milano ,Magix ,Digestive Marie ,Monaco ,Parle Marie ,Kreams ,Milk Shakti ,Parle 20-20 Cookies ,Golden arcs ,Nimkin ,Kreams Gold ,Chox ,Monaco Jeera ITC Ltd The famous ITC Group ventured into the biscuits market in July 2003 with the introduction of the Sunfeast range of biscuits. Sunfeast currently holds a market share of ~10% is surely on its
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way to becoming a top biscuit brand in India. Some of the popular biscuit brands by ITC ltd are Sunfeast Marie Light ,Sunfeast,Sunfeast Dream Cream, Golden Bakery, Sunfeast Dark Fantasy. Key Products : Sunfeast Milky Magic ,Sunfeast Marie Light ,Sunfeast Golden Bakery ,Sunfeast Dark Fantasy ,Sunfeast Dream Cream ,Sunfeast Snacky ,Sunfeast sweet 'n salt ,Sunfeast Nice ,Sunfeast Benne Vita Flaxseed Biscuits ,Sunfeast Special. Anmol Biscuits Ltd Anmol is a popular brand of eastern & northern region, having manufacturing facilities in W.B & U.P. Key Products : Lemon Mazaa , Funfill Choco Vanilla , Yummy - Milk Cream , Tip Top Kajoo Kurkure Masala, Coconutty , Thin Arrowroot , Marie,2 in 1, Butter Bake , Cream Cracker , Dil Khush , Dream Lite , E-Time , Funfill Orange , Funfill Rich Chocolate ,Golmol ,Jadoo ,Marie Time , Snackles ,Milk Made. Bisk Farm Bisk farm was launched in year 2000 in West Bengal and it is owned by Aparna group of Industries under the company called SAJ Industries Pvt Ltd. Consumption Pattern across Various Regions:

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2.2 CONSUMER BUYING BEHAVIOUR

Definition Consumer behaviour can be defined as the activities and the actions of people and organisation that purchase and use economic goods and services, including the influence on these activities and actions. -JF Engel Process by which individuals search for, select, purchase, use, and dispose of goods and services, in satisfaction of their needs and wants. Buying Behaviour is the decision processes and acts of people involved in buying Characteristic of consumer Behaviour The chief characteristics of the consumer Behaviour are as follow:-(1) It consists of mental and physical activities which consumers undertake to get goods and services and obtain satisfaction from them.. (2) It includes both observable activities such as walking through the market to examine merchandise and making a purchase and mental activities such as forming attitudes, perceiving advertising material, and learning too prefer particular brands. (3) Consumer behaviours are very complex and dynamic too constantly changing. And therefore,, management need to adjust with the change otherwise market may be lot.. (4) The individuals specific behaviours in the market place is affected by internal factor,, such as Need , motives, perception, and attitudes, as well as by external of environmental influences such as the family social groups,, culture ,,economics and business influences..

Consumer behaviour refers to the mental and emotional process and the observable behaviour of consumers during searching, purchasing and post consumption of a product or service. Consumer behaviour involves study of how people buy, what they buy, when they buy and why they buy. It blends the elements from psychology, sociology, sociopsychology, anthropology and economics. It also tries to assess the influence on the consumer from groups such as family, friends, reference groups and society in general. Buyer behaviour has two aspects: the final purchase activity visible to any observer and the detailed or short decision process that may involve the interplay of a number or complex variables not visible to anyone.
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CONSUMER BUYING DECISION PROCESS Definition Process by which (1) consumers identify their needs, (2) collect information, (3) evaluate alternatives, and (4) make the purchase decision. These actions are determined by psychological and economical factors, and are influenced by environmental factors such as cultural, group, and social values.

Introduction of buying decision process: Consumers make many buying decisions every day. Mostly large companies do extensive research on consumer buying decision, to answer questions like what does consumer buy, where they buy, how they buy, how much they buy, when they buy and why do they buy a product. The consumer passes through different stages with every purchase, but in more routine purchases, consumers often skip or reverse some of these stages. Consumer decision making process generally involves five stages:

Problem Recognition

Information Search

Alternative Evaluation

Purchase Action

Post purchase Actions

1) Problem Recognition Purchase decision making process begins when a buyer becomes aware of an unsatisfied need or problem. This is the vital stage in buying decision process, because without recognizing the need or want, an individual would not seek to buy goods or service. There are several situations that can cause problem recognition, these include: Depletion of stock Dissatisfaction with goods in stock Environmental Changes Change in Financial Situation Marketer Initiated Activities

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2) Information Search After the consumer has recognized the need, he / she will try to find the means to solve that need. First he will recall how he used to solve such kind of a problem in the past, this is called nominal decision making. Secondly, a consumer will try to solve the problem by asking a friend or goes to the market to seek advice for which product will best serve his need, this is called limited decision making. Sources of information include: Personal sources Commercial Sources Public sources Personal experience 3) Alternatives evaluation Consumers evaluates criteria refer to various dimension; features, characteristics and benefits that a consumer desires to solve a certain problem. Product features and its benefit is what influence consumer to prefer that particular product. The consumer will decide which product to buy from a set of alternative products depending on each unique feature that the product offers and the benefit he / she can get out of that feature. 4) Purchase Action This stage involves selection of brand and the retail outlet to purchase such a product. Retail outlet image and its location are important. Consumer usually prefers a nearby retail outlet for minor shopping and they can willingly go to a far away store when they purchase items which are of higher values and which involve higher sensitive purchase decision. After selecting where to buy and what to buy, the consumer completes the final step of transaction by either cash or credit 5)Post-purchase Actions Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with the purchase is basically a function of the initial performance level expectation and perceived performance relative to those expectations. Consumer tends to evaluate their wisdom on the purchase of that particular product. This can result to consumer experiencing post purchase dissatisfaction. If the consumers perceived performance level is below expectation and fail to meet satisfaction this will eventually cause dissatisfaction, and so the brand and/ or the outlet
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will not be considered by the consumer in the future purchases. This might cause the consumer to initiate complaint behaviour and spread negative word-of-mouth concerning that particular product.

Factors Affecting Consumer Behaviour Consumer behaviour refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behaviour. Initially the consumer tries to find what commodities he would like to consume, then he selects only those commodities that promise greater utility. After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities he should consume. Meanwhile, there are various other factors influencing the purchases of consumer such as social, cultural, personal and psychological. The explanation of these factors is given below. 1. Cultural Factors Consumer behaviour is deeply influenced by cultural factors such as: buyer culture, subculture, and social class. In India there are so many cultures, habits, preferences that without in depth study of them one cannot optimize sales. Culture: Basically, culture is the part of every society and is the important cause of person wants and behaviour. The influence of culture on buying behaviour varies from country to country therefore marketers have to be very careful in analyzing the culture of different groups, regions or even countries. Subculture: Each culture contains different subcultures such as religions, nationalities, geographic regions, racial groups etc. Marketers can use these groups by segmenting the market into various small portions. For example marketers can design products according to the needs of a particular geographic group.

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Social Class: Every society possesses some form of social class which is important to the marketers because the buying behaviour of people in a given social class is similar. In this way marketing activities could be tailored according to different social classes. In India social classes are based on two different criteria and there are two types of social class. First is based on level of income and the other on caste, religion and region. 2. Social Factors Social factors also impact the buying behaviour of consumers. The important social factors are: reference groups, family, role and status. Reference Groups: Reference groups have potential in forming a person attitude or behaviour. The impact of reference groups varies across products and brands. Family: Buyer behaviour is strongly influenced by the member of a family. Therefore marketers are trying to find the roles and influence of the husband, wife and children. If the buying decision of a particular product is influenced by wife then the marketers will try to target the women in their advertisement. Roles and Status: Each person possesses different roles and status in the society depending upon the groups, clubs, family, organization etc. to which he belongs. For example a woman is working in an organization as finance manager. Now she is playing two roles, one of finance manager and other of mother. Therefore her buying decisions will be influenced by her role and status. 3. Personal Factors Personal factors can also affect the consumer behaviour. Some of the important personal factors that influence the buying behaviour are: lifestyle, economic situation, occupation, age, personality and self concept. Age: Age and life-cycle have potential impact on the consumer buying behaviour. It is obvious that the consumers change the purchase of goods and services with the passage of time. Family

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life-cycle consists of different stages such young singles, married couples, unmarried couples etc which help marketers to develop appropriate products for each stage. Occupation: The occupation of a person has significant impact on his buying behaviour. For example a marketing manager of an organization will try to purchase business suits, whereas a low level worker in the same organization will purchase rugged work clothes. Economic Situation: Consumer economic situation has great influence on his buying behaviour. If the income and savings of a customer is high then he will purchase more expensive products. On the other hand, a person with low income and savings will purchase inexpensive products. Lifestyle: Lifestyle of customers is another import factor affecting the consumer buying behaviour. Lifestyle refers to the way a person lives in a society and is expressed by the things in his/her surroundings. It is determined by customer interests, opinions, activities etc and shapes his whole pattern of acting and interacting in the world. Personality: Personality changes from person to person, time to time and place to place. Therefore it can greatly influence the buying behaviour of customers. Actually, Personality is not what one wears; rather it is the totality of behaviour of a man in different circumstances. It has different characteristics such as: dominance, aggressiveness, self-confidence etc which can be useful to determine the consumer behaviour for particular product or service. 4. Psychological Factors There are four important psychological factors affecting the consumer buying behaviour. These are: perception, motivation, learning, beliefs and attitudes. Motivation: The level of motivation also affects the buying behaviour of customers. Every person has different needs such as physiological needs, biological needs, social needs etc. The nature of the needs is that, some of them are most pressing while others are least pressing. Therefore a need becomes a motive when it is more pressing to direct the person to seek satisfaction.

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Perception: Selecting, organizing and interpreting information in a way to produce a meaningful experience of the world is called perception. It means the response given to a stimuli at different point of time. Beliefs and Attitudes: Customer possesses specific belief and attitude towards various products. Since such beliefs and attitudes make up brand image and affect consumer buying behaviour therefore marketers are interested in them. Marketers can change the beliefs and attitudes of customers by launching special campaigns in this regard. 5.Economic factors: Personal income, family income, income expectation, savings, liquid asset of the consumer, consumers credit and other economic factors like inflation, business cycle etc. are the various economic factors which largely influence the consumer behaviour Some other factors including the above factors also influenced the preference of consumer, which may be legal factors, technological factors, ethical The Model of Consumer Behaviour This model shows how the marketing and other stimuli enter the consumer black box and produce certain responses. Stimulus -- Response model for buyer behaviour:Marketing Stimulus Product Buyer Price Promotion Place Other Stimulus Economic Political Social Technological - 17 Buyer Decision Making Process Purchases Timing Purchases Amount Purchases frequency Characteristics Retail Choice Dealer Choice Buyer Response Product Choice Brand Choice

factors, Political factors etc

Why Study Consumer Behaviour ? Consumer is the most important person to the marketer because the marketer takes in to consideration on the liking and disliking of the consumer and he produces the goods and services accordingly. Consumer behaviour is important for the three persons. 1: For consumer: As a consumer most of the time we spend time in the market and a lot on decision making that what to buy and how to buy and meeting and conferencing with different types of peoples and friends with different types of good and services. After all these things we come to the conclusion and then take some steps for the purchasing of different goods and services. If we don't have know how of the market we can suffer huge losses.

For example: A consumer buys a set of mobile company without consulting with his friends or other people. It may be of no use for him.

2: For producer: Consumer behaviour is also important for producer because he design and manufacture different types of product and services keeping in view the wants and needs of consumer.

3:For scientists: The knowledge of consumer behaviour is also important for scientists, whether he is working for profitable organization or non profitable organization. ______________________________________________________________________ References: Books: Modern Marketing, Principles and practices Fourth Revised Edition. S. Chand & Company Ltd, by R.S.N. Pillai and Bagavathi; Consumer Behaviour in Indian context, Second revised Edition 2008, S. Chand &Company Ltd., by Dr. P.C. Jain and Monika Bhatt Websites: www.business.mapsofindia.com, www.market research.org, www.foodbizdaily.com, www.consumerbuyingbehaviour.com, www.learnmarketing.net, en.wikipedia.org
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CHAPTERS 3 Consumer buying behaviour of biscuits in south Amolapatty Area,Dibrugarh This study is confined to South Amolapatty area of Dibrugarh. This area has been taken due to the fact that different classes of consumers in respect of economic status, lifestyle, literacy level, religion, language etc are found in this area. This enables the study to be wide and not dependent on a set class of people. The main religions found in South Amolapatty area are Hindus and Muslim. As we know every religion has its own values, beliefs, faith which greatly affects consumer behaviour. This can be seen with the people of this area. For example, both the religious community has different traditional styles of dress. Similarly there is difference in basic food habits. These differences can be seen in the behaviour of both the religious communities in buying different types of goods. Similarly, in this area different people are engage in different occupation and thus have different income levels. The people of this area does not have the same purchasing power. As a result they show different behaviour in purchasing different type of products at different point of time. For example the buying behaviour of a salary earner is not the same as the behaviour of a daily wage earning labour. All these diversity similarly affects the buying behaviour of the people of South Amolapatty area while buying biscuits. In this area, or even in the nearby areas there is no shopping mall or wholesalers shop. There is 6 street side shops in this area and these shops are the main place of purchase for different types of goods for the people of this area. Usually biscuit is also purchased from these shops by the people. However the choice of brand, frequency of purchase, level of satisfaction may be different from person to person depending on the individuals purchasing power, religion, occupation, life style etc. The major brands found in this area are Britannia, bisk farm, parle, sunfeast etc. This study aims at determining and analyzing the behaviour of consumer and find out the various factors that determines the choice of consumers regarding biscuits. A simple survey is carried out among 50 consumers who are targeted as respondents. In this chapter data collected by

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questionnaire are presented and analyzed through text, tables and figures in order to get a clear view of the buying behavior of consumer of the study area towards biscuits.

Table-3.1 Income level


Monthly income Less than 5000 5001 - 10,000 10,001 15,000 More than 15,000 Total Source: Field work No. of respondents 3 8 18 21 50 Percentage (%) 6 16 36 42 100

Figure-3.1

Income level
6% 16% 42% Less than 5000 5001 - 10,000 10,001 15,000 More than 15,000 36%

Above table and figure exhibits the income of the sample size, as evident the majority of the sample has a monthly income of above Rs.15000. It is found that out of 50 respondents 21 respondents belong to the income group of more than Rs. 15000 per month. In terms percentage it is 42%. In this study it is also found that there are some respondents who belong to the income group of less than Rs.5000 per month. Whereas 16% and 36% respondents belongs to the income group of Rs. 5001 - 10,000 and Rs. 10,001 15,000 respectively. From this study it is observed that majority of the respondents have more purchasing capacity due to their high income.

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Table 3.2 Place of purchase


Place of purchase Street side shops Super markets Total Source: Field work No. of respondents 32 18 50 Percentage (%) 64 36 100

Figure 3.2

no. of respondents

36% street side shops super markets 64%

Above table shows that 32 respondents purchase biscuit from street side shops and 18 respondents purchase from super markets. In terms of percentage it is 64 and 36 respectively. The study reveals that though there are some respondents who purchase biscuit from wholesalers shop, the majority of the respondents buy the biscuit from street side shops.

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Table - 3.3 Source of information


Source: Field work Source Advertisement Friends Family members Others Total No. of respondents 21 11 6 12 50 Percentage (%) 42 22 12 24 100

Figure -3.3

Source of information

24% 42% Advertisement Friends Family members 12% Others

22%

Above table and figure shows that 21 respondents i.e. 42% of the respondents come to know about the biscuit from advertisement. Then 12 respondents i.e. 24% come to know from the other sources. 11 and 6 respondents i.e. 22% and 12% respondents come to know from their friends and family members respectively. The study clearly reveals that advertisement is the source of information from which majority of the respondents come to know about the biscuit.

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Table 3.4 Preferred Brand


Company no. of respondents Britannia Parle Sunfeast Bisk Farm Others Total Source: Field work 20 11 6 7 6 50 Percentage (%) 40 22 12 14 12 100

Figure 3.4

Prefered brands
12% Britannia 14% 40% parle Sunfeast Bisk Farm 12% Others

22%

The data presented in table 3.4 shows the brands preferred by the respondents. Out of 50, 20 respondents i.e. 40% of the respondents are buying Britannia biscuits and 11 respondents (22%) are buying Parle companys biscuit. Sunfeast and Bisk Farm biscuits are purchased by 6 and 7 respondents i.e. 12% and 14% respondents respectively. Whereas 6 respondents prefer other brands. In terms of percentage it is 12%. From this study it is observed that majority respondents are consumer of Britannia biscuits. So Britannia is the most preferred brand in the area.

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Table 3.5 Type of biscuits the respondents prefer(loose biscuits or packet biscuits):-

Attributes Loose biscuits Packet biscuits Both Total Source: Field work

no. of respondents 3 35 12 50

Percentage (%) 6 70 24 100

Figure 3.5

Type of biscuits the respondents prefer


6% 24% Loose biscuits Packet biscuits Both

70%

The data presented in table 3.5 shows whether the respondents prefer loose biscuit or packet biscuit. Above graph shows that 12 respondents i.e. 24% of the respondents buy both loose and packet biscuits. Whereas 35 respondents i.e. 70% of the respondents prefer only packet biscuits. There are also 3 respondents i.e. 6% of the respondents who prefer only loose biscuits. Thus the study clearly indicates that majority of the respondents prefer packet biscuits.

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Table 3.6 Decision maker for purchasing biscuit in a family:


Source Mother Father Children Others Total
Source: Field work

No. of respondents 21 10 12 7 50

Percentage (%) 42 20 24 14 1oo

Figure 3.6

Decision maker for purchasing biscuit in a family


14%

42% 24%

Mother Father Children Others

20%

The above table and figure shows that according to 21 respondents i.e. 42 % of the respondents mothers are the decision makers for purchasing biscuits and 12 respondents i.e.24 % respondents says that children are the decision makers for purchasing biscuit. There are also some respondents according to whom Fathers (20%) and other members (14%) are the decision makers regarding consumption of biscuit in their families. Thus it can be reveal from the study that in majority of the respondents family mothers are the decision maker for purchasing biscuit.

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Table 3.7 Habit of consuming biscuit:


Frequency Rarely Regularly Often Total
Source: Field work

Habit of eating biscuit 7 28 15 50

Percentage (%) 14 56 30 100

Figure 3.7

Habit of eating biscuit


14% 30% Rarely Regularly Often

56%

As par the table and figure, 7 out 50 respondents i.e. 14% of the respondents eat biscuits rarely.28 of the respondents i.e. 56% consume biscuit regularly, whereas 15 of the respondents i.e. 30% of the respondents use to consume biscuit often. It is observed from the study that majority of the respondents have the habit of consuming biscuit regularly. Thus it is a good market for biscuit.

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Table 3.8 Factor/factors influencing buying decision of biscuits


Factors Taste Packaging Price Availability Companys goodwill Other factors
Source: Field work

Total no of respondents 50 50 50 50 50 50

No. of respondents for whom factor is influential 42 15 31 8 35 2

Figure 3.8

No. of respondents for whom the factor is influencial


Taste Packaging Price Availability Company'sgoodwill Other factors 0 2 10 20 30 40 50 8 35 15 31 No. of respondents for whom the factor is influencial 42

The data in the above table shows the factors which influence the buying decision of respondents while purchasing biscuits. Above graph shows that 42 respondents gives importance to taste, 8 respondents give importance to companys goodwill. 31 and 15 respondents are influenced by price and packaging respectively. 8 respondents are influenced by availability, whereas 2 respondents are influenced by other factors of the biscuit while buying biscuit. Thus the study shows that the respondents are mostly influential by taste, companys goodwill and price while purchasing biscuit.

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Table-3.9 Pack size/weight of the biscuit purchase by respondents:


Size(grams) 50-100 101-150 151-200 above 200 Total Source: Field work No. of respondents 8 23 13 6 50 Percentage (%) 16 46 26 12 100

Figure-3.9

Pack size/weight of the biscuit purchased by respondents


12% 16% 50-100 26% 101-150 151-200 above 200 46%

From the above figure it is clearly indicate that 26 % respondents buy 151-200 grams weighted biscuit packs. 12% and 46% respondents purchase above 200, and 100-150 grams biscuit packs respectively. There are also some respondents who purchase biscuits of weight 50-100 grams. Thus the study shows that majority respondents go for 101-150 grams weighted biscuit packs.

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Table 3.10 Preference of biscuit in terms of quality


Attributes Branded Non-branded Both Total Source: Field work no. of respondents 40 3 7 50 Percentage (%) 80 6 14 100

Figure 3.10

Preference of biscuit in terms of quality


14% 6% Branded Non-branded Both

80%

The above table shows the preference of biscuit in terms of quality by the respondents. The table clearly indicates that 40 respondents i.e. 80% of the respondents prefer branded biscuits. Whereas 7 respondents (14%) prefer both branded and non-branded biscuits. It is also found that there are 3 respondents who buy only non-branded biscuits. In terms of percentage it is 6. Thus it observed from the study that majority of the respondents prefer branded biscuit i.e. majority of them are quality conscious.

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Table 3.11 Time of purchasing


Frequency Weekly Fortnightly Monthly Total
Source: Field work

No. of respondents 26 19 5 50

Percentage(%) 52 38 10 100

Figure 3.11

Time of purchasing
10%

Weekly Fortnightly 38% 52% Monthly

As par the data presented in table 3.11, Out of 100 respondents, 26 respondents i.e. 52% of the respondents use to purchase biscuit weekly and. 19 and 5 respondents purchase biscuit fortnightly and monthly respectively. In terms of percentage it is 38 and 10 respectively. The graph shows that majority of the respondents purchase biscuit weekly.

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Table 3.12 Price paid for 100 grams biscuits:


Price Below Rs.5 Rs.5-10 Rs10-15 Rs.15-20 Total Source: Field work no. of respondents 7 24 14 5 50 Percentage (%) 14 48 28 10 100

Figure 3.12

Price paid for 100 grams biscuits


10% 14%

Below Rs.5 28% Rs.5-10 Rs10-15 Rs.15-20 48%

Above table and graph exhibits the price paid by respondents for 100 grams of biscuit they purchase. It is found that 24 respondents belong to the group who purchase 100 grams of biscuit at Rs.5-10. In terms of percentage it is 48%. In this study it is also found that there are some respondents who purchase the same amount of biscuit at price below Rs.5 Whereas 14 respondents i.e. 28 % of the respondents pay Rs.10-15 for 100 grams of biscuit and 5 respondents i.e. 10 % of the respondents pay Rs. 15-20 for the same amount of biscuit. From this study it is observed that different amount is paid by different respondents for 100 grams of biscuit. This is because the difference in preferred brands by the respondents. But majority of the respondents pay Rs.5-10 for 100 grams of biscuit.
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Table -3.13 Consumption of biscuit (in years)


Time periods Less than 1year 1-2 years More than 2 years Total Source: Field work no. of respondents 9 16 25 50 Percentage (%) 18 32 50 100

Figure 3.13

Consumption of biscuit (in years)

18%

Less than 1year 50% 1-2 years More than 2 years 32%

The data presented in table 3.13 shows how long have been the respondents purchasing the biscuit. The data presented in table shows 25 respondents i.e.50 % of the respondents have been purchasing the biscuit for more than 2 years and 16 respondents i.e. 32% of the respondents are purchasing the biscuit from 1-2 years. There are 9 respondents who are buying the biscuit from less than one year. In terms of percentage it is 18. The study clearly reveals that majority of the respondents are consuming the same biscuit from more than two years i.e. they are stick to the same brand.

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Table 3.14 Availability of brands


Brands Britannia Parle Sunfeast Bisk Farm Others Total Source: Field work Total no. of respondents 20 11 6 7 6 50 No. of respondents saying it is available 20 11 4 4 2 41 No. of respondents saying it is not available 0 0 2 3 4 9

Figure 3.14
25

20

15

No. of respondents saying it is available No. of respondents saying it is not available

10

0 Britannia Parle Sunfeast Bisk Farm Others

The data presented in table no. 3.14 shows the availability of brands. Out of 20 respondents preferring Britannia , all the respondents says it is available in the market. Similarly all the 11 respondents consuming parle biscuits, also says that the biscuit is available in the market. But both in case of Sunfeast and Bisk Farm, 4 respondents says it is available whereas 2 and 3 respondents says it is not available in the market. In case of other brands according to 2 respondents the biscuit is available and according to 4 respondents it is not available. From this study it can be observed that Brittannia and Parle biscuit are mostly available biscuit in the market.
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Table 3.15 Satisfaction regarding Brands


Brands Britannia Parle Sunfeast Bisk Farm Others Total
Source: Field work

No. of respondents satisfied 20 11 4 6 4 45

No. of respondents dissatisfied 0 0 2 1 2 5

Total no. of respondents 20 11 6 7 6 50

Figure 3.15
25 20 20

15 11 10 6 5 0 0 Britannia Parle Sunfeast Bisk Farm Others 0 4 2 1 4 2 No. of respondents satisfied No. of respondents dissatisfied

The above table shows that out of 20 respondents preferring Britannia biscuits, all are satisfied. Similarly all the respondents consuming Parle biscuits are also satisfied, But in case of Sunfeast out of 6, 4 respondents are satisfied and 2 respondents are not satisfied, in case of Bisk Farm out of 7, 6 respondents are satisfied and 1 respondents is not satisfied. Whereas in case of other biscuits out of 6 respondents 4 are satisfied and 2 are dissatisfied. Thus the study reveals that Britannia and Parle have able to satisfy the respondents very well.
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Table 3.16 Most influetial Advertising media for biscuit


Advertising Media Television News paper Magazine Banners & Posters Others Total
Source: Field work

No .of respondents 23 8 5 11 3 50

Percentage (%) 46% 16% 10% 22% 6% 100%

Figure 3.16

Most influential Advertising media


6% Television 46% News paper Magazine Banners & Posters 10% 16% Others

22%

From the data presented in table no. 13 and figure no. 13, it can be considered that Television is preferred by 46% of respondents i.e. 23 respondents while purchasing but other 10%, 16%, 22% and 6% of the respondents i.e. 5, 8, 11, 3 respondents prefer, magazine, newspaper, banners and posters and other media respectively. It is therefore clear from the above table that Television is more preferable advertising media as selected by the respondents other than different media of advertising.
References: Field work, unpublished research works.

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CHAPTER 4 SUMMURY AND CONCLUSIONS 4.1 - Summary of the study:


The main purpose of this study CONSUMER BUYING BEHAVIOUR OF BISCUIT IN DIBRUGARH TOWN WITH SPECIAL REFERENCE TO SOUTH AMOLAPATTY AREA, DIBRUGAH is to examine the customers perception towards biscuits in Dibrugarh. Questionnaires were distributed to 50 households in the South Amolapatty area of Dibrugarh in a random basis. The project consists of four Chapters. CHAPTER 1: The first chapter contains introduction of consumer behaviour and biscuit, objectives of the study, scope of the study, methodology, limitation and significance of the study. CHAPTER 2: The second chapter includes a profile of Biscuit industry and consumer behaviour in India. CHAPTER 3: The third chapter contains the analysis and interpretation of the data collected from respondents. CHAPTER 4: The fourth chapter contains the summary of the study, major finding, problems, suggestions and conclusion of the study. The main objective of the study is to study the behaviour of consumer in buying biscuits available in the study area. It also aims to find out the various factors that determine the choice of consumers regarding biscuits. The study is based on primary and secondary source. The primary source of information is collected from questionnaire, prepared and presented before 50 respondents. Secondary data are collected from various websites; books etc. and the shops of the study area are also visited for the purpose. The information thus collected have been tabulated and analyzed. The major point that emerges out of this detailed study is that the market of the study area is dominated by Britannia in comparison to other brands of biscuits available in the market. It is also found that majority respondents give importance to taste then after they consider companys goodwill and price to choose and purchase between different brands available in the market. It has also been
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found that that majority of people purchase biscuit from street side shops than from super markets in the study area. Therefore the marketers should make their goods available in street side shops. One more thing revealed by the study is that maximum no. of respondents came to know about the biscuit they purchase from advertisements. Therefore advertisement can be regarded as the best media for publicity of the product.

4.2 - Major Findings of the study:


1. In current market scenario, respondents give importance to taste then after they consider companys goodwill and price. 2. Biscuits of price Rs. 5-10 (for 100 grams) are well moving in market. 3. The study shows that maximum no. of respondents are consumers of Britannia biscuits. So Britannia is the most popular biscuit company in study region. 4. Majority respondents go for packet biscuits. 5. The study show that maximum no. of respondents are came to know about the biscuit they purchase from advertisements and 25 respondents came to know from others. 6. The study shows that more respondents purchase biscuit from street side shops than from super markets. 7. The study shows that in most cases mothers are the decision takers regarding biscuit. 8. The study shows that Britannia and parle are the most available biscuit in the market. 9. Maximum respondents prefer to buy biscuits weekly, may be because of majority of the respondents have higher income and thus have more purchasing capacity. 10. 101-150 grams weighted biscuit packs are well moving in market. 11. Consumers are quality conscious in case of biscuits. Very few prefer non-branded biscuits. 12. Maximum no. of respondents are purchasing the same biscuit from more than two years. 13. Television is more influential advertising media as selected by the respondents than other media of advertising.

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4.3 - Problems and limitation of different companies regarding satisfaction of customers needs and demands:
Though 100% of the respondents preferring Britannia and Parle biscuits are satisfied, in case of Sunfeast, Bisk Farm and other brands it is not so. Among the respondents consuming Sunfeast, Bisk Farm and other brands there are few respondents who are not satisfied with the biscuit. Moreover from this study it is observed that the availability of Britannia and Parle biscuits in the market is very good. But in case of Sunfeast, Bisk Farm and other brands there are few respondents according to whom the biscuit is not available in the market.

Other problems: 1. Not many respondents are buying biscuits from super markets or shopping mall. 2. Above 200 grams weighted biscuit packs are not being purchased by respondents. 3. There are still some people who are purchasing non branded biscuits. 4. Packaging and availability are not influencing the buying decision of consumers. Taste, companys goodwill, price are the factors influencing their decision. 5. Newspaper, magazine and other Medias of advertisement are not so influential as compared to television.

4.4 - Suggestions:
1. Sunfeast, Bisk Farm and the other brands should try more to satisfy the consumers. 2. Except Britannia and Parle, the other companies should concentrate on better availability of the product. 3. Companies should make their goods available in street side shops as most of the consumers buy biscuit from these shops. 4. Size of the biscuit pack should be between 150-200 grams because this is the size people prefer most. 5. Companies should give importance on advertisement.

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6. Instead of packaging Biscuit companies should give more importance on taste and improving the brand name among the public, because they are the most influential factors in taking buying decision of biscuit. 7. Companies should do advertisement on television as it is observed from the study that television is the most influential advertising media for biscuit.

4.5 - Conclusion:
The major point that emerges out of this detailed study is that the study area i.e. South Amolapatty area of Dibrugarh is dominated by Britannia. Though there are also consumers of Parle, Bisk Farm, sunfeast and some other brands. With a population more than 1000 the study area can be a potential market for biscuit. As the study shows the majority of the people has high income and thus have high purchasing capacity. More over it can be observed from the study that majority of the respondents consume biscuits regularly. This makes the area a very good market of biscuits. One more important thing that the study reveals is advertisement is the source of information from which majority of the respondents came to know about the biscuit. Therefore advertisement can be regarded as the best media for publicity of the product and thus increasing sales. Biscuit is a popular food product in our country. Biscuit has become the common mans food. Thus there is lot of opportunities for the producers to exploit the Indian biscuit industry. The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of Indian Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be achieved by the biscuit industry of India. There is no doubt that the biscuit industry may be growing with a double digit figure still the companies have a long way to travel. And the key to sell and excel in the market is possible by knowing the needs and demands of the customers and this is possible by conducting this type of study on buying behaviour of biscuits in various area and sell the products because ultimately only that product survives which sells!

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Customers are created and maintained through marketing strategies. And the quality of marketing strategies depends on knowing, serving, and influencing consumers. This suggests that the knowledge & information about consumers is essential for developing successful marketing strategies and thus it is necessary for the marketers to study the consumer behaviour and develop the marketing strategies accordingly. Probably every companys aim is to popularize in market with new brands and attract the customers with offering varieties. The customers every time ask for satisfaction. If manufacturing company satisfies the consumer needs then behaviour is no matter.

__________________________________________________________________________ References: Field work WEBSITES: www.business.mapsofindia.com, www.market research.org.

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BIBLIOGRAPHY Books: Modern Marketing, Principles and practices Fourth Revised Edition. S. Chand & Company Ltd, by R.S.N. Pillai and Bagavathi Consumer Behaviour in Indian context, Second revised Edition 2008, S. Chand & Company Ltd., by Dr. P.C. Jain and Monika Bhatt

Websites: www.business.mapsofindia.com www.market research.org www.foodbizdaily.com www.consumerbuyingbehaviour.com www.learnmarketing.net en.wikipedia.org

Research Work (unpublished):

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APPENDIX Questionnaire: NOTES: Please reply to each question by filling the appropriate alternative(s). Note that more than one alternative may be applicable. Name: Monthly income: a) Below Rs.5000 c) Rs.10000-15000 1) Do you have the habit of eating biscuits? a) Rarely b) Regularly c) Often b) Rs.5000-10000 d) Above Rs.15000

2) What company biscuits do you buy / prefer at present? a) Branded b) Non-branded

Mention the name: ________________________ 3) What type of biscuits do you prefer? a) Loose biscuits b) Packet biscuits

4) Which of the following factor / factors influence in taking buying decision? a) Taste d) Price g) Other factors 5) How long have you been purchasing the biscuit? a) Less than one year c) More than 2 years 6) How did you came to know about the biscuit? a) Advertisement c) Family members 7) What is the purchasing frequency? a) Weekly b) Fortnightly c) Monthly b) Friends d) Neighbours b) 1 to 2 years b) Size e) Availability c) Packaging f) Companys goodwill

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8) Who is the decision maker for purchasing biscuit in your family? a) Mother 9) Place of purchase: a) Retail outlet b) Wholesalers shop b) Father c) Children d)others

10) At what price do you buy the biscuit(100 grams)? a) Rs.5-10 c) Rs.15-20 11) What pack size do you prefer to buy? a) 50-100 grams c) 150-200 grams b)100-150 grams d) above 200 grams b) Rs.10-15 c) Above Rs.20

12) Whether the biscuit is available sufficiently in the market? a) Yes b) No

13) Which of the following advertising media influence you most in purchasing biscuit? a) Television b) News paper e) Others 14) Are u satisfied or dissatisfied with the biscuit? a) Dissatisfied Thanks for your participation b) Satisfied c) Magazine d) Banners & Posters

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