A PROJECT REPORT ON

CONSUMER BEHAVIOUR CONSUMPTION OF FAST FOOD

TOWARDS

SUBMITTED TO MATRIX BUSSINESS SCHOOL (2008-2009)

SUBMITTED BY Gulab Ch. Sharma

MATRIX BUSINESS SCHOOL PUNE 2008-2010

CERTIFICATE
This is to certify that the FIELD WORK titled CONSUMER BEHAVIOR IN CONSUMPTION OF FAST FOOD Is a Bona fide work carried out by Mr. GULAB CHAND SHARMA student of Master of MARKETING MANAGEMENT Semester 2nd of MATRIX BUSINESS SCHOOL, PUNE.

Internal Guide Dr. Madhuri Shete

Director Dr. J.N. Pol

Date: Place: Pune

College Seal

Acknowledgement

A successful project can never be prepared by the single effort or the person to whom project is assigned , but it also demand the help and guardianship of some conversant person who helps in the undersigned actively or passively in the completion of successful project. With great pleasure I express my gratitude to our director Dr.J.N.Pol and project guide Prof. Madhuri Shete without their help this would not have been completed. They have given there precious suggestions and constructive guidance have been indispensable in the completion of this project work. I would also like to thank the staff of the Matrix Business School. They have supported me in this endeavor, and appreciated me in my efforts during my project. Last but not the least I would also like to thank my friends and all the responded. Who directly and indirectly supported to me during my project work, without the help of whom this project would not have been possible.

Gulab Ch. Sharma

INDEX
Sr no 1 2 3 4 5 6 7 8 9 10 11 Title Executive Summary Objective and Scope of the Study Theoritical Background Research Methodology Data analysis and Interpretation Finding Limitations Conclusion Recommendation Annexure Bibliography Page No. 5-6 7-8 9 10-12 13-23 24-25 26-27 28-29 30 31-32 33

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

Project Title
Consumer Behavior in the consumption of fast food The study of any subject is made by examining it in an organized fashion. There are three classes of variables involved in understanding consumer behavior; STIMULUS, RESPONSE and INTERVENING variables. Stimulus variables, such as advertisements, products exist in both the individuals external environment. These generate a sensory input to consumers. Response variables are the resulting mental / or physical reactions of individuals who are influenced by stimulus variables. For e.g. : purchasing a product or forming attitudes about it could be viewed as response variables. Many of the variables affecting consumers (such as personality, learning, and perceptions are external situations, motives, and so forth) cannot be directly observed.

A questionnaire was prepared by us in order to conduct market survey. The questionnaire was based on different parameters to judge and understand the consumer behaviors and determine the best possible strategies which could be used to attract customers.

The research carried out in this project was descriptive in nature. The study was aimed at knowing the various eating habits of a consumer. This project helped in understanding what exactly a customer looks in an eating joint before entering it. It gave an idea about the essential factors that are required now a day for an eating joint to attract customers in this competitive world.

We were also given a task to understand the customer eating habits, what a consumer wants while eating in a restaurant what all a consumer look for and what are their expectations, how can restaurant owner satisfy the needs and wants of a consumer so that the consumer may come back.

This project helped us to figure out the different consumer eating behavior and to understand the overall customer perception of eating in a restaurant as well as their demand for restaurant.

OBJECTIVES & SCOPE OF THE STUDY

OBJECTIVES & SCOPE OF THE STUDY

Objective: To analyze consumer behavior towards consumption of fast food.

Scope of the project:The market survey has done in fast food restaurants; this project is useful for the better understanding of the consumer behavior. The project encompasses the various behavior of customer, their pre and post behavior when they eat. There is also overview of the consumers attraction towards fast food restaurants, mostly consumer perceptions are changing and most of the consumer now prefers to eat in fast food restaurant. The project work involves specific guidelines for the restaurant and helps the restaurants to understand better the consumer behavior in fast food restaurants.

Theoritical background
Consumer behavior:Consumer behavior is the study on when, why, how, where and what people do or do not buy products. It blends elements from psychology, sociology, anthropology and economics. It attempts to understand the buyer decision processes/buyer decision making process, both individually and in groups. The study of consumer behavior is the study of how individual makes decision to spend their available resources (time, money and efforts) on consumption related items. It studies characters of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand peoples wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Definition of consumer behavior: The decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services. The term consumer behavior can be defined As the behavior that consumer display in searching for purchasing, using, evaluating and disposing of products, services and ideas which they expect satisfy their needs.

Research Methodology

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RESEARCH METHODOLOGY
Research Methodology ill common parlance refers to a search for knowledge. One can also define also research as a scientific and systematic research for pertinent information a specific topic. Research is an art of systematic investigation. Some people consider research as a movement, a movement to the known to the unknown.

According to Clifford Woody: Research comprises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions mil reaching conclusion, and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis. Marketing research is defined as a systematic gathering and analysis of the data concern with an objective. The whole activity is divided into various parts and after compilation of that we reach at certain findings, which enable us to marketing decision. It involves the diagnosis of information needed and the selection of the relevant and interrelated variables.

Research Plan: Research Approach: SURVEY METHOD

Primary Source
Primary data consists of original information gathered for specific purpose. The primary data is collected through questionnaire. The questionnaire is through common instrument collecting primary collection. I collected the data through questionnaire from different small eating joints.

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

Questionnaire
The questionnaire was carefully developed tested and debugged before they were administered on a large scale. Each questions contributed to the research objective here questionnaire is structured types means there are concrete, definite and predetermined questions. The questions are presented are exactly same wording and in the same an order to all respondents. The questionnaire had a mix type of open ended, closed ended and multiple choice questions. The questions were limited in numbers simple direct and unbiased technology was adopted.

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Data Source:

Primary:
The data was collected through questionnaire comprising of 17 questions.

Secondary:
The data was collected through:

Data Collection Instrument:

Questionnaire

Sampling Procedure:
1. Sample Unit : Consumer visited Small Eating Joints

2. Sample Size

50 Respondents

3. Sampling Method

Random Sampling Method

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Question no.1

1. Do you visit restaurants? Visit Restaurants Respondents (in %) Respondents (in No.) Yes 100% 50% No 0% 0

Respondents (in %) 120% 100% 80% 60% 40% 20% 0% Yes No Respondents (in %)

Interpretation:All the candidates interviewed visited small eating joints.

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Question no.2

2. Your suitable timing for visiting food joint?

Suitable timing

Respondents (in %) Respondents (in No.)

Morning 10% 5

Afternoon 20% 10

Evening 50% 25

Late Night 30% 15

Suitable time of visiting

Respondents (in %)

30%

10% 20% Morning Afternoon Evening Late Night 50%

Interpretation:Maximum respondents are visiting food joints in evening and late night because at day time they have a busy schedule.

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Question no. 3

3. You like to visit food joint with? Visit food with Family Friends 40% 20 Alone 10% 5

Respondents (in 50% %) Respondents (in 25 No.)

Respondents (in %)

10% Family Friends 50% 40% Alone

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

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Question no. 4

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

Part of income

Respondents %) Respondents (in 20 No.)

<10% (in 40%

<15% 36% 18

>15% 24% 12

Respondents (in %)

24% 40% <10% <15% >15% 36%

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

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Question no. 5

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

Spent at a time <200 Respondents 30% <500 40% 20 <1000 20% 10 >1000 10% 5

(in %) Respondents (in No.)

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Respondents (in %)

10% 30% 20% <200 <500 <1000 >1000 40%

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

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Question no. 6

6. Which food joint preferred by you most?

Preferred food Mc Donalds joint Respondents 40%

Pizza Hut
30% 15

Dominos
14% 7

Other
16% 8

(in %) Respondents (in No.)

20

Respondents (in %)

16% 14% 40% Mc donalds Pizza Hut Dominos Other 30%

Interpretation:Most of the respondents are visiting McDonalds because McD has a brand identity in the minds of consumer as providing cost effective products.

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Question no.7

7. Favorite cuisine? Favorite cuisine Respondents (in %) Respondents (in No.) Western junk Chinese food nodules
50% 25 30% 15

South Indian
16% 8

Other
4% 2

Respondents (in %)

16%

4% Western junk food Chinese nodules 50% South Indian other

30%

Interpretation:Most of the respondents are selecting western junk food and Chinese nodules as their favorite cuisine.

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Question no. 8

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

Preference for Convenience food Respondents 24%

pricing
28% 14

taste
36% 18

Other
12% 6

(in %) Respondents (in No.)

12

Respondents (in %)

12%

24% Convenience pricing taste

36% 28%

Other

Interpretation:Most of the respondents are preferring restaurants due to their provided food taste and price.

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Question no. 9

9. Are you satisfied with its pricing?

Satisfied

Respondents (in %) Respondents (in No.)

Yes 80% 40

No 20% 10

Respondents (in %) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No 20% Respondents (in %)

80%

Interpretation:Now days most of restaurants are providing cost effective foods, so mostly respondents are satisfied with its price.

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Question no.10

10.Which is the most effective promotional activity for food joints according to you?
Effective Promotional activity

Discount

Home delivery
20% 10

Other
20% 10

Respondents (in 60% %) Respondents (in 30 No.)

Respondents (in %)

20% Discount Home delivery 20% 60% Other

Interpretation:Most of the respondents prefer the most effective promotional activity as they are getting more in fewer prices for discount scheme.

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Question no.11

11.Are you satisfied with the ambience of your preferred food joint?
Satisfied with the Yes Ambience Respondents (in 70% No 20% 10 Little bit 10% 5

%) Respondents (in 35 No.)

Respondents (in %)

10% 20%

Yes No Little bit 70%

Interpretation:Most of the respondents are satisfied with the ambience provided by restaurants because now days they have well space and services.

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FINDINGS

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FINDINGS AND OBSERVATIONS

1. Almost every person contacted or interviewed said that he/she has visited small eating joints. 2. From analysis we found out that most of the people were affected and attracted with offers and schemes. 3. It has been found out that most of the people in Pune city visit small eating joints for refreshment and enjoy. 4. Consumers choose small eating joints because they all want taste change and economic food. 5. Most of the people who visit small eating joints prefer to spend 15% of their monthly income and more than 500-1000 Rs at a time eating. 6. Advertising plays a very crucial part in the consumer decision making process. 7. Most of the respondents take on the spot decision of eating different products because of the various product displays. 8. For most of the respondents quality plays a very important role because most of the respondents said that they want quality products and thats also one reason for most of the respondents sticking to particular brands. 9. We can also say that location, variety convenience and economical products are not the only things which attract the customer but there are some other factors which play a major role in attracting the customers as mentioned above.

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LIMITATIONS

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LIMITATIONS

Time constraint
The allotted time to conduct the survey was 15 days. Therefore it became a bit difficult to cover the entire city of Pune. However, the key areas were aptly covered.

Availability of data:
Most of the restaurants and eating joints were not in favor of us conducting the survey inside their premises as it would disturb their customers. Non-willingness of the respondents to answer the questionnaire was also a hurdle.

Reliability of data:Reliability of data always remains a prime concern when humans are surveyed. Moninterest, poor understanding, unclear questions, inability to think instantly and customer biases creeps in apprehensiveness in the minds of the researcher while tabulating and analyzing the data.

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CONCLUSION

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CONCLUSION

Consumers behavior is often studied because certain decisions are significantly affected by their behavior or expected actions. For this reason consumer behavior is said to be applied discipline.

1. In a general sense, the most important reason for studying consumer behavior is the significant role it plays in our lives. Much of our time is spent directly in the market place, eating or engaging in other activities. A large amount of additional time is spent thinking abut products and services, talking to friends about them, and seeing or hearing advertisements about them. In addition, the goods people eat and the manner in which they use them significantly influence how they live their daily lives. These general concerns alone are enough to justify our study of consumer behavior. However, many seek to understand the behavior of consumers for what are thought to be more immediate and tangible reasons.

2. The main reason behind this project was to find out the behavior of the consumer behavior while eating in small eating joints because most of the population surveyed preferred to eat at large restaurants and how day by day the consumers demands are increasing and through this project I came to know that what are the various behavior of a typical customer who eats in different eating joints.

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Recommendations

1. Most Suitable timing for customers are evening and late night so customers are recommended that they hope they will be enjoy better services at that time. 2. Customers visit food joints with group. 3. Most of the people spend 500 rupees at a time visit, so they hope to eat more in this budget. 4. Western foods (pizzas and burgers) and Chinese nodules are favorite cuisines of customers comparatively Indian cuisine, so food joints have to serve these cuisines most. 5. Customers face convenience problems, so food joints have to rectify this.

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Annexure Questionnaires on Consumer Behavior towards consumption of fast food

1. Name : 2. Gender? a. Male 3. Age? a. <15 b. <25 c. >25

b.

Female

4. What is your profession? a. Working b. Student 5. Income (annually)? a. 1-1.5lakhs b. 1.5-3lakhs 6. Do you visit restaurants? a. Yes 7. How often you visit restaurants? a. Weekly b. monthly

c. .

c. >3lakhs

b. No

c. occasionally

8. Your suitable timing for visiting fast food restaurant? a. Morning b. afternoon c. evening 9. You like to visit food joint with? a. Family b. friends

d. late night

c. alone

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10.What part of your income (monthly) you spend in restaurants? a. <10% b. <15% c. >15% 11.How much you spent at a time visiting fast food restaurant ? a. <200 b. <500 c. <1000 d. >1000 12.Which fast food restaurant preferred by you most? a. McDonalds b. Pizza Hut c. Dominos d. Other 13.Favorite cuisine? a. Western junk food other

b. Chinese nodules

c. South Indian

d.

14.Your preference for the fast food restaurant is due to? a. Convenience b. pricing c. taste d. other 15.Are you satisfied with its pricing? a. Yes

b. No

16.Which is the most effective promotional activity for restaurants according to you? a. Discount b. Home delivery c. Other 17.Are you satisfied with the ambience of your preferred fast food restaurant? a. Yes b. No c. little bit

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Bibliography

Books and magazines:

Consumer Behavior - Fourth edition by David L. London & Albert J. Delia Bitta. Research methodology (Methods & Technology)

Revised Second edition by C.R.Kothari

Through net surfing:

www.google.com www.wikipedia.com www.answers.com

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