winter project wom and cbb

A STUDY OF WORD_OF_MOUTH MARKETING AND ITS IMPACT ON CONSUMER BUYING BEHAVIOUR FOR SOFT DRINKS IN SURAT CITY

Chapter: 1

Industry profile


INTRODUCTION:

A soft drink (also called soda, pop, coke, soda pop, fizzy drink, seltzer, mineral, lolly water or carbonated beverage) is a beverage that typically contains carbonated water, a sweetener and a flavoring. The sweetener may be sugar, high-fructose corn syrup, fruit juice, sugar substitutes (in the case of diet drinks) or some combination of these. Soft drinks may also contain caffeine, colorings, preservatives and other ingredients.

Soft drinks are called "soft" in contrast to "hard drinks" (alcoholic beverages). Small amounts of alcohol may be present in a soft drink, but the alcohol content must be less than 0.5% of the total volume. if the drink is to be considered non-alcoholic. Fruit juice, tea and other such non-alcoholic beverages are technically soft drinks by this definition but are not generally referred to as such.

Soft drinks may be served chilled or at room temperature, and some, such as Dr Pepper, can be served warm.

HISTORY:

The first marketed soft drinks in the Western world appeared in the 17th century. They were made of water and lemon juice sweetened with honey. In 1676, the Compagnie des Limonadiers of Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors carried tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty Parisians.

In the late 18th century, scientists made important progress in replicating naturally carbonated mineral waters. In 1767, Englishman Joseph Priestley first discovered a method of infusing water with carbon dioxide to make carbonated water when he suspended a bowl of


distilled water above a beer vat at a local brewery in Leeds, England. His invention of carbonated water (also known as soda water) is the major and defining component of most soft drinks.

Priestley found that water treated in this manner had a pleasant taste, and he offered it to friends as a refreshing drink. In 1772, Priestley published a paper entitled Impregnating Water with Fixed Air in which he describes dripping oil of vitriol (or sulfuric acid as it is now called) onto chalk to produce carbon dioxide gas, and encouraging the gas to dissolve into an agitated bowl of water.

Another Englishman, John Mervin Nooth, improved Priestley's design and sold his apparatus for commercial use in pharmacies. Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman's apparatus allowed imitation mineral water to be produced in large amounts. Swedish chemist Jöns Jacob Berzelius started to add flavors (spices, juices, and wine) to carbonated water in the late eighteenth century.

Over 1,500 U.S. patents were filed for either a cork, cap, or lid for the carbonated drink bottle tops during the early days of the bottling industry. Carbonated drink bottles are under great pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide or bubbles from escaping. In 1892, the "Crown Cork Bottle Seal" was patented by William Painter, a Baltimore, Maryland machine shop operator. It was the first very successful method of keeping the bubbles in the bottle.

EVENTS AND MILESTONES:

1798

The term "soda water" first coined.

1810

First U.S. patent issued for the manufacture of imitation mineral waters.

1819

The "soda fountain" patented by Samuel Fahnestock.

1835

The first bottled soda water in the U.S.

1850

A manual hand & foot operated filling & corking device, first used for bottling soda water.


1851

Ginger ale created in Ireland.

1861

The term "pop" first coined.

1874

The first ice-cream soda sold.

1876

Root beer mass produced for public sale.

1881

The first cola-flavored beverage introduced.

1885

Charles Aderton invented "Dr Pepper" in Waco, Texas.

1886

Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.

1892


William Painter invented the crown bottle cap.

1898

"Pepsi-Cola" is invented by Caleb Bradham.

1899

The first patent issued for a glass blowing machine, used to produce glass bottles.

1913

Gas motored trucks replaced horse drawn carriages as delivery vehicles.

1919

The American Bottlers of Carbonated Beverages formed.

1920

The U.S. Census reported that more than 5,000 bottlers now exist.

Early 1920's

The first automatic vending machines dispensed sodas into cups.

1923

Six-pack soft drink cartons called "Hom-Paks" created.

1929

The Howdy Company debuted its new drink "Bib-Label Lithiated Lemon-Lime Sodas" later called "7 up". Invented by Charles Leiper Grigg.

1934

Applied color labels first used on soft drink bottles, the coloring was baked on the face of the bottle.

1952

The first diet soft drink sold called the "No-Cal Beverage" a gingerale sold by Kirsch.

1957

The first aluminum cans used.

1959

The first diet cola sold.

1962


The pull-ring tab first marketed by the Pitts burgh Brewing Company of Pittsburgh, PA. The pull-ring tab was invented by Alcoa.

1963

The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in March, invented by Ermal Fraze of Kettering, Ohio.

1965

Soft drinks in cans dispensed from vending machines.

1965

The reseal able to invented.

1966

The American Bottlers of Carbonated Beverages renamed The National Soft Drink Association.

1970

Plastic bottles are used for soft drinks.

1973

The PET (Polyethylene Terephthalate) bottle created.

1974

The stay-on tab invented. Introduced by the Falls City Brewing Company of Louisville, KY.

1979

Mello Yello soft drink is introduced by the Coca Cola Company as competition against Mountain Dew.

1981

The "talking" vending machine invented.


RAW MATERIALS USED IN SOFT DRINKS:

There are different types of raw materials used in different soft drinks. Most of the raw materials are as under:

1. Water:

The simple sweetened soft drink contains about 90% of water, while in diet drinks; it contains 95% of water.

2. Flavors:

Flavor is of great importance in soft drink. Even water fromdifferent places have different taste. The flavor for taste added can binaural or artificial, acidic, caffeine.

3. Artificial Flavors:

These are the flavors manufactured from natural extracts; this issued to give greater choice, in taste to consumers.

4. Acids:

Acids like citric acid & phosphoric acid are added to give refreshing tartness or bite & help in preserving the quality of a drink.

5. Natural Flavours:

These are the flavors, which are extracted from fruits, vegetables, nuts, barks, leaves etc. in soft drink containing natural flavors & fruit juice.

6. Caffeine:

Caffeine has special kind of taste makes the taste of soft drink a royal one. Caffeine was added to soft drink from its introduction to a commercial market but now caffeine free soft drinks are also available. Its quality is ¼ than compared with same amount of coffee.

7. Carbon Dioxide:

Carbon Dioxide is a colorless & smells less gas, which is added to cold drink to get bubble & it also help in keeping drink strong & fresh.

8. Color:

Along with taste of soft drink is also of very important, the company tries to maintain both taste & color of the soft drink everywhere in the world.

9. Sugar:

Sugar syrup is added to the drink at around 75 degree C to the pure drinking water, this is to make soft drink taste sweet. Even artificial sweetness is also used.


DISTRIBUTIONS OF SOFT DRINKS:

The soft drinks can be distributed on the basis of two concepts.1. Distribution according to taste.2. Distribution according to consumption.

1. Distribution according to taste:

The soft drinks can be distributed in Cola & non – cola taste. Non cola taste consist of drink of orange, lime, mango etc. & lime taste can further divided in to cloudy lime & clear lime. The pie diagram shows the market captured by different taste. Orange taste market is occupied by brands like Fanta, Mirinda Orange & Crush. Mango taste market occupied by brands like Slice, Maaza, Mangola.Cloudy lime taste is occupied by brands like Limca, Mirinda Lime etc. Clear lime taste is occupied by 7 UP, Sprite, Canada Dry etc. This is basically produced in green bottle as sunlight spoils the taste of the drinks; its color is transparent like water.

2. Distribution according to the consumption:

80% of soft drinks are consumed on the spot, where it is sold at place like cinemas, railway stations etc. Other 20% of the market of soft drink is consumed at home or other places.


SOFT DRINK INDUSTRY IN INDIA:

The 50-bn-rupee soft drink industry is growing now at 6 to 7% annually. In India, Coke and Pepsi have a combined market share of around 95% directly or through franchisees. Campa Cola has a 1% share, and the rest is divided among local players. Industry watchers say, fake products also account for a good share of the balance. There are about 110 soft drink producing units (60% being owned by Indian bottlers) in the country, employing about 125,000 people. There are two distinct segments of the market, cola and non-cola drinks. The cola segment claims a share of 62%, while the non-cola segment includes soda, clear lime, cloudy lime and drinks with orange and mango flavors.

The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as Nepal's) compared to Pakistan's 17 bottles, Sri Lanka's 21, Thailand's 73, the Philippines 173 and Mexico 605. The industry contributes over Rs 12 bn to the exchequer and exports goods worth Rs 2 bn. It also supports growth of industries like glass, refrigeration, transportation, paper and sugar. The Department of Food Processing Industries had stipulated that 'contains-no-fruit-juice' labels be pasted on returnable glass bottles. About 85% of the soft drinks are currently sold in returnable bottles. There was a floating stock of about 1000 mn bottles valued at Rs 6 bn. If the industry were to abide by the new guidelines, it would have to invest in new bottles, resulting in a cost outgo of Rs 5 bn. Neither Coke nor Pepsi is in a position to invest such a large amount.

Around 400,000 tonnes of raw material would be required to replace the existing stock of bottles. Instead, the soft drink industry suggested that a seven-year moratorium be extended to the industry so that it can incorporate the change in a phased manner. There is no such mandatory requirement anywhere in the world to specifically label the glass surface of returnable bottles. The government has decided to extend the date for replacing the bottles to end-march 2006. In the meantime, the producers have shifted substantially to the use of PET bottles.

Soft and aerated drinks were considered products for the middle class and the affluent. That segregation is no more valid. Soft and aerated drinks are consumed by all except those who cannot afford to buy any drink. An NCAER study says that 91% soft drink sales are made to the lower, middle and upper middle classes. The soft drink industry has been urging the government to categorise aerated waters (soft drinks) equitably with other consumer products of mass consumption and remove special excise duty.

The industry estimates that the beverage market should grow at twice the rate of GDP growth. The Indian market should have, therefore, grown by atleast 12%. However, it has been growing at a rate of about 6%. In contrast, the Chinese market grew by 16% a year, while the Russian market expanded at almost four times the rate of growth of the Indian market.


CONSUMPTION OF SOFT DRINK IN INDIA:

India is one of the lowest soft drink consuming countries in the world. According to per capita in India is 5 bottles per year, while highest consumption in USA of 800 bottles per year. Lower, Lower middle & upper middle class consume 91% of softdrink market.

Brands Rs. (Crore)

Thums Up 1740

Coke 1350

Limca 1030

Fanta 600

Kinley 540

Sprite 400

Maaza 350

7 UP 250

Mirinda 210

Pepsi 127

Brands Male Female

Thums Up 1238 516

Coke 994 508

Maaza 468 318

Fanta 391 290

Sprite 282 156

Limca 462 303


Demand: Past & Future

Year mn cases

2000-01 243

2001-02 262

2002-03 279

2003-04 291

2004-05 310

2005-06 330

2006-07 359

2007-08 373

2008-09 388

2009-10 403

2014-15 479


Chapter: 2

Company’s Profile


The Coca-Cola Company continues to dominate the soft drinks market with its $29 billion

business including four out of the five top selling brands: Coca-Cola, Diet Coke, Fanta and

Sprite. In addition to its own brands, the company holds licensing and distribution

agreements for over 500 drink brands. Coca-Cola manufactures and distributes Monster

Energy Drinks throughout the UK. The Monster Energy brand therefore received marks from

The Coca-Cola Company and the Monster Beverage Corporation. Coca-Cola also has

majority ownership of the not-so-innocent Innocent Smoothies.

Coca-Cola remains the subject of a boycott by the Campaign to Stop Killer Coke, with the

aim of “holding The Coca-Cola Company, its bottlers and subsidiaries accountable and to end

the gruesome cycle of violence and collaboration with paramilitary thugs, particularly in

Colombia”.

Human rights complaints continue to be made against the company, with sixteen black and

Hispanic production workers claiming they had been forced to work in “a cesspool of

discrimination”.

The company also received negative marks for a number of animal rights issues. Several of

its drinks (Lilt, Schweppes Orange Squash and Five Alive Apple Five Fruit Blend), were

found to contain fish gelatine, and several of the company’s subsidiaries continued to sponsor

bloodsports at many of the world’s largest rodeos.

Coca-Cola has signed The UK Department of Health’s Calorie Reduction pledge, and

launched its first ever advert on TV addressing the issue of obesity. The company took the

controversial step earlier this year of replacing all full-sugar Sprite in the UK with a Stevia

sweetened version containing 30% less calories.

The Coca-Cola Company is one of several drinks manufacturers that have been accused of

over-extracting ground-water resources and creating water shortages for numerous

communities. Complaints of wells drying up, water pollution, heavy metal pollution and

ground subsidence have been particularly prevalent throughout the Indian subcontinent.

Encouragingly, reports of community resistance resulting in success also seemed to be

prevalent. In early 2007, community lead protests and vigils within Plachimada, Kerala,

resulted in the eventual permanent closure of a Coca-Cola bottling plant. In February 2011,


the BBC reported that the state of Kerala had passed a law that would allow people to seek

compensation for environmental damage caused by Coca-Cola.

No recent water criticisms could be found against the company, nor any other soft drinks

companies. Coca-Cola appears to have been forced to change its water habits, and has ‘new

guidelines for siting new or expanding existing plants that would “consider the health of local

watersheds.” However, with reports of the company continuing to apply to expand operations

in water-poor areas, and no data available to back up ‘water neutral’ aims and claims, the

company has a long way to go to convince civil society that it is ensuring sustainable water

use and extraction.

Various Products by Coca-Cola company:

COKE COKE DIET COKE ZERO THUMS-UP

SPRITE FANTA LIMCA MAAZA

PULPY ORANGE NIMBU FRESH MINUTE MAID

http://www.coca-colaindia.com/products/coca-cola.html

http://www.coca-colaindia.com/products/diet_coke.html

http://www.coca-colaindia.com/products/coke_zero.html

http://www.coca-colaindia.com/products/thumsup.html

http://www.coca-colaindia.com/products/sprite.html

http://www.coca-colaindia.com/products/fanta.html

http://www.coca-colaindia.com/products/limca.html

http://www.coca-colaindia.com/products/maaza.html

http://www.coca-colaindia.com/products/mmpo.html

http://www.coca-colaindia.com/products/mm_nimbu_fresh.html

http://www.coca-colaindia.com/products/hund-guava.html


GUAVA

PepsiCo is second only to Coca-Cola within the fizzy drinks market. Its well known drink brands include Pepsi, Mountain Dew, 7Up and Gatorade, all of which are distributed by Britvic plc within the UK. These brands therefore received marks from both PepsiCo and Britvic plc. PepsiCo also owns the juice brands, Tropicana and Copella and Old Jamaica Ginger Beer. The company has received multiple criticisms for inappropriate advertising, the latest of which forced the company to withdraw a “racist” Mountain Dew ad. The online ad showed a battered white woman on crutches being asked to identify a suspect out of a police line-up of black men and a goat. A blogger described the 60 second video as “arguably the most racist commercial in history”.

The US-based ‘GMO inside campaign’ are calling for PepsiCo to label their GMO ingredients, or to get GMOs completely out of their products. According to the Non-GMO Project, 95% of the sugar beet crop and more than 88% of the corn crop are now genetically modified in the US. It stated that Coca-Cola and Pepsi have spent more than $4.1 million to derail GMO labeling in the US.

Various Product’s by PEPSICO:

PEPSI SLICE NIMBOOZ 7Up


Chapter: 3

Theoretical Framework


Consumer Buying Behavior:

The study of customer buying behavior is intense pace globalization. According to Nargunkar (2008), globalization has changed the way the businesses operate and target their customers. As more and more businesses are operating in more than one country, they need to understand the different cultures and characteristics of their customers. As businesses grow geographically, their customer bases change and the needs of customers in one country varies from the needs of the customers in another country. Therefore, the study of consumer buying behavior is essential in order to target all the customers in all different geographical areas.

In addition, studying the consumer buying behavior is essential especially in conditions of fierce competition in the market. As the number of companies in the same industry which offer the similar or even the same products or services to the customers, these businesses need to target the right segment. To make this happen, it is important to understand the buying behavior of the customers Lancaster et al (2002).

Another factor leading to the importance of learning customer buying behavior is rapid advancements in the technology. Due to the development of information technologies and IT systems, learning the customer buying behavior has become more practical and easier. It is also stated that the large and multinational businesses are investing significantly on improvements of their IT systems in order to better understand the needs and wants of their customers. This in turn enables them to identify what and how often their customers are purchasing Brink and Berndt (2009).

Companies need to be analyzing their consumer buying behavior in a constant manner in order to assess the impact of marketing strategy on customers, to deal with elements of marketing mix strategy with an increased level of effectiveness, and to be able to forecast buyer behavior to various marketing strategies.

The importance to study the consumer buying behavior has intensified due to fast pace of globalization which changed has been consistently changing the way consumers are shopping for their daily food and grocery products. As more retailers operate in more than on country, they have to pay close attention to the difference in culture, lifestyle, taste, expectations and many other factors that determine the differing buying behavior of customers from various countries. Therefore, the study of consumer behavior is very vital to target all the customers from different geographical areas.

In order to identify and research the whole purchasing process of the consumer, marketing scholars developed a “stage model” which lays out all the process and stages of the purchasing process of the consumer. It is worth noting that the buying process starts long before the actual purchase and it has consequences long afterward. According to Kotler and Keller (2012) the consumers usually pass through the five stages which such as problem recognition, information search, evaluation of alternatives, purchase decision and post-purchase behavior. It is of great importance for the marketers to identify and study all these stages well in order to better find out about the buying behavior of their consumers.


However, consumers do not always pass through all these five stages as they sometimes may reverse or skip some of these stages depending on their buying behavior, need and the type of product. They mention about the regular brand products that consumers buy on a daily basis and their resistance to change this particular purchase decision. The marketers claim that when the consumers are purchasing these products, they usually skip the process of information search and evaluation. Therefore, it is important to note that this stage model works well when the consumer faces a new product with several alternatives.

Because the stage model is vital part of the consumer buying behavior and this concept on its own has been very narrowly looked at by many retailers lately, the consequences of this has been quite adverse in some marketing campaigns. For example, even the largest retailer, Tesco has failed to successfully implement its price-cut campaign in early 2012 due to uncertainties in the reaction of its consumers leading to a fall in its share prices and overall revenue.

Therefore, in order to achieve strategic objectives, the retailers have to identify the buying behavior of their customers in order to offer them the right products at the right prices through right marketing channels. In order to do this, retailers have to conduct in-depth marketing research to better understand the buying behavior of their customers which requires very extensive research and analysis.

For example, retailers have to understand their customers’ culture, social groups, needs and wants before offering any product or service. Once the knowledge is gathered and analyzed about the customers and their buying behavior, retailers can design and draw better and more effective marketing plan to achieve their objectives.

Word of Mouth:

Definition:

Oral or written recommendation by a satisfied customer to the prospective customers of a

good or service. Considered to be the most effective form of promotion, it is also called word

of mouth advertising which is incorrect because, by definition, advertising is a paid and non-

personal communication.


1. Introduction to word of mouth

The Internet dramatically facilitates consumer interconnections. Email referrals, online

forums of users and newsgroups, as well as customer reviews encouraged by merchant

websites allow consumers to share information far more easily than ever before. This

interconnectivity is a global phenomenon that facilitates the disseminationof both positive

and negative word-of-mouth dissemination that cannot be easily controlled by marketers or

brand managers. In addition, it challenges the existence of geographical markets, and hence

the ability to conduct local marketing strategies. However, marketers have noted the

customer-leveraging possibilities the Internet offers, among which viral marketing is amongst

the most intriguing. The goal of viral marketing is to use consumer-to-consumer (or peer-to-

peer) communications—as opposed to company-to-consumer communications—to

disseminate information about a product or service, thereby leading to more rapid and cost

effective adoption by the market. when consumers willingly become promoters of a product

or service and spread the word to their friends; they are driven to do so either through an

explicit incentive (e.g., financial incentives, need to create network externalities) or simply

out of a desire to share the product benefits with friends (e.g., fun, intriguing, valuable for

others).

2. How word-of-mouth (WOM) works

Word-of-mouth communications have received extensive attention from both academics and

practitioners for decades. Since the early 1950s, researchers have demonstrated that personal

conversations and informal exchange of information among acquaintances not only influence

consumers' choices and purchase decisions pre-usage and even post-usage perceptions of a

product or service (Some research has reported WOM influence as greater than print ads,

personal selling, and radio advertising, show that some of those effects may have been

overstated. Considerable research has been directed at better understanding the antecedents

and consequences of WOM. The existing literature can be classified into three streams.

The first focuses on the reasons why consumers proactively spread the word about products

and services they have experienced. factors such as extreme satisfaction or dissatisfaction,

commitment to the firm length of the relationship with the firm


The second stream aims to better understand information-seeking behaviors, or more

specifically, under what circumstances consumers rely on WOM communications more than

on other sources of information to make a purchasing decision. Consumers with little

expertise in a product category who perceive a high risk in decision-making or who are

deeply involved in the purchasing decision (Beatty & Smith, 1987) are more likely to seek

the opinions of others for product advice.

Third stream examine why certain personal sources of information exert more influence than

others. Researchers have identified factors such as source and perceptual affinity as important

antecedents of WOM influence.

The Growing Importance of Word of Mouth

The Internet has changed the way business is done. The variables of segmentation, targeting,

and positioning are addressed differently. Because of the increased role of sharing - or online

"word of mouth" - the way new products and services are marketed has changed, even though

the aim of business in bringing economic and social values remain the same. Indeed, the

bottom line of increasing revenue and profit are still the same. Marketing has evolved to

include more connectedness, due to the new characteristics brought in by the Internet.

Marketing was once seen as a one way relationship, with firms broadcasting their offerings

and value proposition. Now it is seen more as a conversation between marketers and

customers .

Word Of Mouth Marketing

Social media sites that allow sharing have brought about a new word of mouth form of

marketing.


The starting point of the integrated marketing communications (IMC) process is the

marketing mix that includes different types of marketing, advertising, and sales efforts.

Without a complete IMC plan, there is no integration or harmony between client and

customers. The goal of an organization is to create and maintain communication with its own

employees and customers. Using outside-in thinking, integrated marketing communications is

a data-driven approach that focuses on identifying consumer insights and developing a

strategy with the right online and offline combination of channels to forge a stronger brand to

consumer relationship. This involves knowing the right touch points to use to reach

consumers and understanding how and where they consume different types of media.

Regression analysis and customer lifetime value are key data elements in this approach.

Moreover, this new "word of mouth" form of marketing can bring benefits to a company;

such as:

It can create competitive advantages, boost sales and profits, while saving money,

time, and stress.

IMC wraps communications around customers and helps them move through the

various stages of the buying process. The organization simultaneously consolidates its

image, develops a dialogue, and nurtures its relationship with customers.

This "relationship marketing" cements a bond of loyalty with customers which can

protect them from the inevitable onslaught of competition. The ability to keep a

customer for life is a powerful competitive advantage.

IMC also increases profits through increased effectiveness.

Carefully linked messages also help buyers by giving timely reminders, updated

information and special offers which, when presented in a planned sequence, help

them move comfortably through the stages of their buying process.

IMC also makes messages more consistent and therefore more credible. This reduces

risk in the mind of the buyer which, in turn, shortens the search process and helps to

dictate the outcome of brand comparisons.

Finally, IMC saves money as it eliminates duplication in areas such as graphics and

photography since they can be shared and used in say, advertising, exhibitions, and

sales literature.


Chapter: 4

Research Methodolog


4.1 What is research methodology?

Research is the systematic inquiry that provides information to guide managerial definition.

More specifically, it is a process of planning, acquiring, analyzing, and interpretation of

relevant data, information and insight to decision makers in ways to mobilize the organization

to take appropriate action in turn maximize business performance.

Research is a structural inquiry that utilizes acceptable scientific methodology to solve

problems and create new knowledge which is generally applicable. Scientific method consists

of a systematic observation, classification and interpretation of data.

4.2Main objective

1. Primary objective

To know the effect of word-of-mouth on customers purchasing decision towards soft

drinks in surat city.

To know whether the customer will change the consumption due to negative and

positive effects of mord-of-mouth.

2. Secondary objective

To Study the factors influencing the consumer Buying behavior.


4.3MPORTANCE OF THE STUDY:

This study will be important for knowing the consumer’s Buying behaviour while

purchasing soft drinks

To know the impact of word-of-mouth on buying behaviour.

This study will be important to know consumers make their choices affected by word-

of-mouth.

This study will be also benefited for the soft drink comoanies to retain their services

To know whether various social, cultural factors affects the consumer buying

behavior.

4.4 Research Design

Descriptive research, also known as statistical research, describes data and characteristics

about the population or phenomenon being studied. However, it does not answer questions

about e.g. how/when/why the characteristics occurred, which is done under analytic research.

In descriptive research, the researcher has much prior knowledge about the problem situation.

It is characterized by the prior formulation of specific hypothesis. Thus, the information

needed is clearly defined. As a result, it is preplanned and structured. There is a clear

specification of the who, when, where, why and way (the six W’s) of the research.

Types of Research design:

The research design is a detailed blueprint used to guide the research study towards its

Objectives. The process of designing a research study involves many interrelated decisions.

The most significant decision is the choice of research approach as it determines how the

information will be obtained. The type of research is descriptive approach which means

asking questions to people who are believed to possess the desired information. It measures

the magnitude of people’s knowledge, attitudes and buying behavior.

4.5Data collection


The primary data is collected with the help of a survey tool i.e. questionnaire. In all I have

collected data from 100 samples.

Secondary data are those data which are collected by someone else and which have already

been passed through statistical process. Secondary data in my research has been taken

from internet, company’s websites as mention in the bibliography.

Collection of data:

In dealing with any real life problems it is often found that data at hand are inadequate, and

hence, it becomes necessary to collect data that are appropriate. The researcher can collect

data either through primary source or secondary source.

Primary data:

The data collection of my research report includes gathering of both primary and

secondary data.

Primary data is the first hand data which are selected at fresh and thus happens to

be original in character. Primary data was useful to know various customers and

past consumers views about the brand preference of consumer. It has been

collected using the field survey.

Secondary data:

Secondary data are those data which are collected by someone else and which have already

been passed through statistical process. Secondary data in my research has been taken

from internet, company’s websites and Books as mention in the bibliography.

4.6 Data Collection techniques:


Sampling

A Sampling is a part of the total population. It can be an individual element or a group of

elements selected from the population. Although it is a subset, it is representative of the

population and suitable for research in terms of cost, convenience, and time. The sample

group can be selected based on a probability or a non-probability approach. A sample usually

consists of various units of the population.

a. Sampling Size:

The sample size of a statistical sample is the number of observations that constitute it. It is

typically denoted n, a positive integer (natural number).For example, if we interviewed 30

random students at a given high school to see if they liked a certain music artist, "30

students" would be our sample size.

In this research the total sample size is 100 observations (respondents)

b. Sampling Method:

Sampling methods are classified as either probability or non-probability . In probability

samples, each member of the population has a known non-zero probability of being selected.

Probability methods include random sampling, systematic sampling, and stratified sampling.

In non-probability sampling, members are selected from the population in some nonrandom

manner. These include convenience sampling, judgment sampling, quota sampling, and

snowball sampling.

The advantage of probability sampling is that sampling error can be calculated. Sampling

error is the degree to which a sample might differ from the population when inferring to the

population; results are reported plus or minus the sampling error. In non-probability sampling,

the degree to which the sample differs from the population remains unknown.

Judgmental sampling: The samples (customers) are selected just because they are easiest to

recruit for the study and the researcher did not consider selecting samples that are

representative of the entire population. And it is a part of non probability sampling method.

In this research I have used Non-probability sampling method in that I have used

Convenience sampling method.

c. Sampling Frame:


A sampling frame is a list or other device used to define a researcher's population of interest.

The sampling frame defines a set of elements from which a researcher can select a sample of

the target population Sample for this research study is taken from the surat people.

d. Sample Element:

Sample elements means “who are the respondents in the survey”. Respondents include

youth, mid-aged people, male, female Sample elements for the study of word-of-

mouth and its impact on consumer buying behavior.

e. Survey Tool:

In Survey Tool the data collection is through structured direct interview. Structured

direct interview is a formal questionnaire (i.e. set of questions) that is Structured and direct. A

questionnaire is a research instrument consisting of a series of questions and other prompts

for the purpose of gathering information from respondents. Although they are often designed

for statistical analysis of the responses, this is not always the case.

f. Survey Method:

The survey method used under this research is Personal Interview Method. The

interviewer is instructed to ask the persons those questions only in the order given in the

questionnaire.

g. Analysis of Data:

The data so generated would be subjected to rigorous statistical treatment and the inferences

will be drawn accordingly. The basic analytical tools like column charts and pie charts

have been used.

4.7 Scope of study


1. It will help the soft drink companies to know there customers views.

2. It will help the soft drink companies to more focus on word-of-mouth.

3. It will help soft drink companies on their strength and weakness.

4. This study will show the gap between loyalty could enhance the chance of repeat

purchase and broaden the customer base.

5. The study of word-of-mouth can show the future of companies.

6. Through understand how customers behave, marketers can think of relevant strategies.

4.6 Limitation of the study:

a)The research may be biased on the part of researcher and customer

b)Time at the disposal research was limited

c) Sample size is restricted to 100

d)There is limited scope for the respondent to answer questions in any detail or depth.

e)The study is concentrated only in the area of surat.

4.7 Pilot survey:

A Pilot survey is a preliminary piece of research conducted before a complete survey to test

the effectiveness of the research methodology.

This should be completed before the final survey commences. The intention is to alert the

survey or to any difficulties that were not anticipated at the survey proposal stage. Pilot

surveys are undertaken after pre-tests.

Total no. of pilot survey conducted = 1


Total no. of questions = 11

Effect of pilot survey

While conducting the survey we get to know about few mistakes in preparing which we had

done in preparing the question, so we liberalize the language of the questions and eliminated

the unnecessary questions.


Chapter: 5

Analysis and Findings


Q.1) Do you consume soft drinks?

Responses Male Female Male% Female%

Yes 40 41 40% 41%No 16 3 16% 3%

Total 100 100%

Yes No0

10

20

30

40

50

60

70

80

90

40

16

41

3

FemaleMale

Interpretation:

From the above table and chart we can interpret that 40 male and 41 female respondents consumer soft drinks and 16 men and 3 women do not consumer soft drinks.


Q.2) How often do you consume soft drink?

Options No of responses Percentage%

1 or 2 times a week 37 37%2 to 4 times a week 16 16%4 to 6 times a week 17 17%

More than 6 times a week 13 13%Never 17 17%Total 100 100%

1 or 2 times a week

2 to 4 times a week

4 to 6 times a week

More than 6 times a week

Never0

5

10

15

20

25

30

35

40 37

16 17

13

17

Interpretation:

From the above chart and table we can interpret that out of 100 responses 37 respondents consume soft drink 1 or 2 times a week, than 17 respondents consume soft drink 4 to 6 times a week and 17 respondents do not consume soft drinks.


Q.3) From the following, which one or more soft drink are available in departmental stores and restaurants? (Multiple choice)

Options No of responses Percentage%

Coca-cola 72 17.52%Pepsi 47 11.44%

Maaza 51 12.41%Mountain-Dew 16 3.89%

Fanta 34 8.27%Limca 38 9.25%Sosyo 19 4.62%Sprite 40 9.73%7Up 21 5.11%

Thums up 66 16.1%Kashmira 2 0.49%

Frooti 5 1.22%Total 411 100%

Coca-co

laPep

si

Maaza

Mountain-D

ewFa

ntaLim

caSo

syoSp

rite

7UP

Thums u

p

Kashmira

Frooti

0

10

20

30

40

50

60

70

80

Interpretation:

From the above table and chart we can interpret that 17% respondents think that coca-cola is available on most of the departmental stores and restaurants and kashmira is least available.


Q.4) Which soft drink will you prefer the most if you buy soft drinks?

Options Students Businessman Job Housewife Percentage

Coca-cola 7 4 1 1 12.5 19.1 10 7.69Pepsi 6 1 0 0 10.71 4.76 0 0

Maaza 5 3 2 4 8.93 14.29 20 30.77Mountain_Dew 4 0 0 2 7.14 0 0 15.38

Fanta 4 1 0 1 7.14 4.76 0 7.69Limca 2 1 1 0 3.57 4.76 10 0Sosyo 9 4 1 0 16.07 19.1 10 0Sprite 4 0 1 3 7.14 0 10 23.17Up 1 1 1 0 1.79 4.76 10 0

Thums up 12 6 3 2 21.43 28.57 30 15.38Kashmira 0 0 0 0 0 0 0 0

Frooti 2 0 0 0 3.57 0 0 0Total 56 21 10 13 100 100 100 100

Coca-co

laPep

si

Maaza

Mountain-D

ewFa

ntaLim

caSo

syoSp

rite

7Up

Thums u

p

Kashmira

Frooti

0

2

4

6

8

10

12

14

7

6

5

4 4

2

9

4

1

12

0

2

4

1

3

0

1 1

4

0

1

6

0 0

1

0

2

0 0

1 1 1 1

3

0 0

1

0

4

2

1

0 0

3

0

2

0 0

StudentBusinessmanJobHousewife

Interpretation:

From the above table and chart we can interpret that students prefer thums-up, businessmen prefer thums-up, job respondents prefer thums-up and housewife prefer Maaza more compared to others.


Q.5) From the following, rate the factors affecting your buying behavior when you go to purchase soft drinks?

Factors 1*

2* 3* 4* 5* Percentage

Price 16

5 15 45 18 25 4.03 10.56

20.73

11.76

Quality 2 2 10 50 37 3.125

1.61 7.04 23.04

24.18

Promotion 4 17 39 33 7 6.25 13.7 27.46

15.21

4.57

Advertisement 5 32 23 30 10 7.21 25.81

16.1 13.82

6.53

Availability 8 36 20 24 12 12.5 29.03

17.08

11.1 7.84

Word-of-mouth 17

26 25 22 11 26.56

20.97

17.61

10.1 7.19

Brand 12

6 10 13 58 18.75

4.84 7.04 5.99 37.91

Total 64

124

142

217

153

100 100 100 100 100

Price

Quality

Promoti

on

Advert

isemen

t

Availa

bilty

Wor

d-of

-mou

thBran

d0

10

20

30

40

50

60

70

16

2 4 58

1712

52

17

3236

26

6

1510

39

2320

25

10

4550

3330

24 22

1318

37

710 12 11

58

1*2*3*4*5*

Interpretation:


From the above table and chart we can interpret that brand affects the most and word-of-mouth is least affected for purchase decisions.


Q.6) How likely is word-of-mouth affect your buying behavior for soft drinks?

Options No of responses Percentage %

Very Low 17 17%Low 12 12%Nor Low neither High 46 46%High 19 19%Very high 6 6%Total 100 100%

Very Low Low Nor Low Neither High

High Very High05

101520253035404550

1712

46

19

6

Responses

Responses

Interpretation:

From the above table and chart we can interpret that 48 respondents out of 100 are affect by word-of-mouth is average and only 6 respondents are affected very high.


Q.7) Which Soft drink were you affected by word-of-mouth?

Options No of responses Percentage %

Coca-cola 11 11%Pepsi 4 4%Maaza 17 17%Mountain-dew 2 2%Fanta 5 5%Limca 6 6%Sosyo 24 24%Sprite 8 8%7Up 1 1%Thums up 10 10%Frooti 2 2%Slice 2 2%Coke Zero 1 1%Non ( not affected ) 7 7%

Coca-c

olaPep

si

Maa

za

Mou

ntain-

DewFan

ta

Limca

Sosyo

Sprite

7Up

Thums u

pFro

otiSlic

e

Coke Z

ero Non0

5

10

15

20

25

30

11

4

17

25 6

24

8

1

10

2 2 1

7

Responses

Responses

Interpretation:

From the above table and chart we can interpret that 24 respondents were affected for sosyo through word-of-mouth and least affected for 7Up, Coke Zero, Moutain Dew. Maaza stands 2nd after Sosyo.


Q.8) How much will you rate the following during purchase of soft drinks affected by word-of-mouth?

Options 1* 2* 3* 4* 5* Percentage %

Friends 8 2 14 16 60 2.99 2.56 18.67 25.81 50.85Family 16 16 16 20 32 5.99 20.51 21.3 29.41 27.12Relatives 30 28 19 10 13 11.23 35.89 25.3 16.13 11.01Business Group

66 14 11 5 4 24.72 17.95 14.67 8.06 33.99

Retailers 74 10 4 8 4 27.7 12.82 5.33 12.9 33.99Neighbors 73 8 11 3 5 27.34 10.26 14.66 4.84 4.24Total 267 78 75 62 118 100 100 100 100 100

Friends Family Relatives Business Group

Retailers Neighbors0

10

20

30

40

50

60

70

80

8

16

30

66

74 73

2

16

28

1410 8

14 1619

11

4

1116

20

105

83

60

32

13

4 4 5

1*2*3*4*5*

Interpretation:

From the above table and chart we can interpret that out of 100 respondents 60 respondents have selected friendsWord-of-mouth which affects the most during purchasing soft drinks and retailers and neighbors word-of-mouth is affected the least.

winter project wom and cbb

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