Professional Documents
Culture Documents
Final Major Research Project Report
Final Major Research Project Report
Submitted By:
MAY 2020
CERTIFICATE
This is to certify that the project report entitled “Factors Affecting Consumer Purchase
Decision: A Selective Study of Confectionery products” which is submitted by Deepshikha
Saxena (2K19/UMBA/11), Khushbu Misra (2K19/UMBA/14) and Vidhi Saraff
(2K19/UMBA/25) in partial fulfilment for the award of Masters of Business Administration
of USME, Delhi Technological University is a record of candidate’s own work carried out
by them under my supervision. The matter embodied in this project is original and has not
been submitted for award of any other degree.
DECLARATION
We hereby declare that this submission is our own work and that, to the best of our
knowledge and belief, it contains no material previously published or written by another
person not material which no substantial extent has been accepted for the award of any other
degree or diploma of the university or other institute of higher learning, except where due
acknowledgement has been made in the context.
Date:
Place: Vidhi Saraff (2K19/UMBA/25)
ACKNOWLEDGEMENT
It is a pleasure for us to add heartfelt words for the people who were the part of this project
in numerous ways who gave us never ending support right from the stage of the beginning
of the research.
We wish to express our gratitude to Dr. Jagvinder Singh from USME, Delhi Technological
University for giving us an opportunity to conduct a research on Factors Affecting
Consumer Purchase Decision: A Selective Study of Confectionery products. He provided us
with her assistance and support whenever needed, which has been instrumental in
completion of this research.
We express our sincere gratitude to her for her invaluable guidance and unwavering support
during the entire course of this research project work.
Our apologies for any oversights or shortcomings in the details provided in this report. Last
but not least we thank our family members and friends for being a constant source of
encouragement throughout this period.
This study is done to find out the factors affecting a consumer’s preference which lead the
consumer to establish a buying decision for different confectionery products that are
available in the present industry of confectioneries. Primary data here has been gathered
with the help of e-questionnaire & secondary data was through the literature review.
Descriptive Research method is used in this study. Also, a sample-size of 126 respondents is
taken by doing the calculation using sample size calculation by proportion. Random
sampling is done. Various factors are identified by grouping the attributes with high
correlation using factor analysis. These factors affect the consumer’s purchasing decision in
the confectionery industry. These are six factors identified namely Price, Quality, Health
Consciousness, Look & Feel, Temperature, Taste which are then used as Indicated variables
in regression analysis so that the impact of these factors at the dependent variable i.e. the
consumer’s purchasing decision. Further, this study will enable the companies to better
understand the customer’s requirements and preference for choosing a confectionery. This
helps the companies to identify the areas related to their product on which they should focus
more and find possible solutions to guarantee continued existence in the competitive
environment of the confectionary Industry.
List of Figures
4.2 Communalities 28
4.6 ANOVA 36
4.7 Coefficients 37
Table of Content
S. No Topic Pg. No
1. INTRODUCTION 1
Research Objective 15
Hypothesis 16
2. LITERATURE REVIEW 17
3. RESEARCH METHODOLOGY 21
Data Sources 21
Research Design 21
Sampling 21
Data Collection 22
Factor Analysis 27
Regression Analysis 35
Result 37
5. MANAGERIAL IMPLICATIONS 38
6. LIMITATIONS 39
7. REFERENCES 40
8. ANNEXURES 42
INTRODUCTION
About the Industry: confectioners
The India Confectionery market has been recording a CAGR of 12.15% since 2010. The
Snack Bars category has shown the best growth since 2010 with a CAGR of 19.07%, and
surpassed volume consumption of 4.845 million kg in 2018.The Boiled Sweets segment is
predicted to dominate the Gum sales during the forecast period. Supermarkets and
Hypermarkets remain a very important marketing for the Confectionery sales.
Softline’s/Self lines constitute the leading segment in the Chocolate category which
encompasses a per capita consumption of 0.005114 kg in 2018.Cereal Bars was the fastest
growing segment within the last five years, with a CAGR of 19.14%.
India Confectionery sales through On-line Retail channel recorded a powerful CAGR of
59.82% during 2010-2018. History of confectionery products dates back to 3000 years as
per ancient Egyptian records. it's more interesting to know about confectionery items as
traditionally people were making products without using specialised ingredients.
Historically, humans used sugarcane juice or honey as ingredients, concentrated at particular
consistency for creating different tasty products.
During modernisation, alternative ingredients got innovated with different techniques like
hydrolysis, extraction, chemical change, and synthesis, which changed the sport to the
subsequent level. Corn and starch became the key and integral part of ingredients
manufacturing.
Different methods are there to classify confectionery products like sugar content, supported
the format of products or supported the character of products. Traditionally, we categorised
confectionery as bakers’ confectionery and sugar-based confectionery. All bakery products
are bakers’ confectionery which could be a separate nutrient category altogether. So, this
classification doesn't seem to be valid on the commercial level.
1
In the times, confectionery is categorised as sugar base, chocolates and Gums, considering
commercial manufacturing methods and merchandise profiling. there's differently to classify
confectionery products under five heads, counting on the understanding of products and its
ingredient contents. Here we are considering the broad classification of 5 rather than three-
level classification.
The Indian Confectionery market is one in every of the fastest growing within the world
with a robust revenue of USD 11.56 billion in 2019. The market is anticipated to grow
annually by 6.7% (CAGR 2019-23). The common volume per person within the
Confectionery segment amounts to 2.3 kg in 2019. India ranks within the top 10 countries of
the planet in terms of revenue generation during this industry. Major cities in India, like
Delhi/NCR, Mumbai, Hyderabad, Bengaluru, Chandigarh, Chennai, and Kolkata are among
the leading demand generators of candies within the country.
2
Fig 1.1
Segmental Analysis
Segment’s Turnover Value for the Indian Confectionery Industry (USD Million)
The four major segments of the Indian Confectionery Industry are chocolate & chocolate
products, sugar confectionery, cookies & crackers and frozen dessert.
• Chocolate confectionery primarily includes chocolate bars, candy bars and pralines. In
2019, the revenue generated by this segment amounted to USD 1771.5 million.
• The sugar confectionery segment includes chewing gum, toffees, dragees, hard & soft
candies and confiture. The segment generated a revenue of USD 2838 million in 2019.
• Cookies & crackers primarily talk to sweet food where the average per capita consumption
stands at 1.4 kg in 2019.
3
• Dairy ice creams, yoghourt and sorbets constitute the frozen dessert segment. The revenue
during this segment amounts to USD 637 million in 2019 and is anticipated to grow
annually by 8.2% (CAGR 2019-23).
Fig 1.2
Segment’s Volume for the Indian Confectionery Industry (In Million Kg)
With increasing economic development within the country, the quality of living of
consumers is improving significantly, which is driving up the demand for confectionery
products across the cities. the quantity of production is anticipated to succeed in 3496.1 Kg
by 2023.
Fig 1.3
Major Players within the Indian Confectionery Industry
4
Mondelez, Nestle, Ferrero,
Mars India & Lotte similarly as
large domestic players like
Amul, Parle, ITC & Candico
Above mentioned companies have a well-entrenched presence within the Indian
confectionery market.
Fig 1.4
Investment Trends
• Mondelez International Inc plans to launch more premium range products under its popular
mid-priced brand 5 Star. It considers its Indian business to be crucial in achieving its global
online sales target by 2020.
• Ferrero India Pvt Ltd is attending to invest INR2,000 crore in India over three years to
manufacture products suited to local needs. Thanks to the recent climate conditions in India,
the corporate is developing innovative chocolate confectionery products with higher melting
points.
• Chocolate maker Mars Inc. will bring more of its global products to India. It's also
developing more local products for the Indian market.
5
Market Drivers
6
Key Trends
7
Key Players & their products in confectionery Industry
8
Fig 1.5
The segment accounts for a substantial share within the chocolate sales, with dark
chocolates, boxed chocolates, molded chocolate becoming a preferred choice among the
consumers. because of an enormous retail space catering to a large kind of preferences, the
supermarkets/hypermarkets are dominant channels for the sales of chocolate within the
country. Factors, like business expansion and the rising number of hypermarkets and
supermarkets, increase the sales of those retail formats and significantly contribute to the
upper penetration of premium chocolate. Shopping at the hypermarkets/supermarkets is
additionally perceived useful, thanks to the big variety of brands on offer, considerable
shelf-space, and frequent price promotions.
Fig 1.6
9
The Ice Cream Industry
Fig 1.7
As the world population grows, urbanization rates rise and global economies improve, the
demand for indulgence products like frozen dessert and frozen desserts are steady and
therefore the forecasts are promising.
The global frozen dessert market is forecasted to record a CAGR of 4.7% and reach
US$73.2 billion by 2022.Macroeconomic factors like increasing disposable incomes and a
growing desire for indulgence treats are driving the frozen dessert sector to grow rapidly and
strongly worldwide. However, no region is anticipated to witness a bigger increase in
growth just like the Asia-Pacific.Led by India and Thailand, Asia-Pacific is forecasted to
work out a rise of CAGR of 4.1% by 2022, specifically thanks to an expanding middle-
income socioeconomic class and an oversized youth population who enjoy and hunt down
novelties, especially Western-like.
Specifically, the Indian market is anticipated to register the general value growth of over 50
to stand proud of 2019 to 2022.
Interestingly enough, the frozen dessert consumption per capita in India is currently very
low compared to global consumption and considering the number of dairy India is producing
for the planet.
10
The yearly frozen dessert consumption in India is currently 400 millilitres per capita.
Meanwhile within the USA, it is 22,000 millilitres and three,000 millilitres in China (Smart
Research Insights)
Forecasts expect Indian consumption to catch up with China and see nearly a seven-fold
increase within the market. While the world frozen dessert market is forecasted to record a
CAGR of 4.7% by 2020, the Indian frozen dessert sector is predicted to get older at a CAGR
of 12.4% by 2022.
Fig 1.8
11
In India, youth under 26 years old account for 53% of the population, making them the key
demographic for this sector. This appetite for diversity is leading a trend within the use of
novel and weird ingredients like hot sauces, salted caramel, cheddar, and rosemary.
2)Health Concerns
Although the Indian population seeks out indulgences, more consumers are getting tuned in
to the high fat and high sugar content of frozen dessert. Indians consumers want the most
effective of both worlds and specifically, explore for ‘low fat’ health claims.
In India, the quality fat content in frozen dessert has decreased to as low as 5%. Consumers
are trying to find even lower percentages and frozen dessert manufacturers are actively
searching for solutions to retort to the trends but to also reduce the assembly costs.
3)Transparent Labelling
In continuation of health concerns, consumers expect transparent labels as a typical and
increasingly prefer products with few and easy-to-pronounce ingredients.
4)Flexible Packaging
Ice cream and frozen desserts are commonly consumed as a take-home product or as a
single-serve product, and consumers search for packaging that enhances convenience but is
additionally compact and encourages portion control.
12
Fig 1.9
Cake industry in India
1.10
Fig: India Cake Market size, by region, by value 2021-2022
Candy market in India is anticipated to grow at a CAGR of over 9% during 2016 - 2021, on
account of rising bourgeoisie households, in addition to increasing working similarly as
youth population. The foremost dominant segment within the country's candy market is
candy. Rapid modernization, continuously rising innovative and premium product launches,
growing e-commerce market as well as expanding organized retail channels and
synchronized distribution networks are projected to drive the candy market in India within
the coming years.
13
The candy segment is predicted to take care of its dominance thanks to continuing launch of
innovative products furthermore as aggressive branding initiatives undertaken by leading
market players. Preference for premium chocolate candies as gifts on festivals and functions
is additionally growing considerably across the country because of increasing marketing
initiatives to position chocolate candies as a product of indulgence instead of impulse
product. In 2015, the organized sector accounted for a majority share in India candy market;
and also, the segment's dominance is predicted to further increase during 2016-2021.
Fig 1.11
The cookies industry in India, valued at INR 145bn (~USD 2.41bn) in FY 2014, has been
growing at a CAGR of ~10% over the last three years. Value Notes estimates that the
industry is worth nearly INR 279bn (~USD 4.65mn) by FY 2019, growing at a CAGR of
~14%. Growth of this segment is predicted to prevent as manufacturers are offering
discounts to push volume sales, which successively has stalled the worth growth of the
industry. The share of glucose biscuits is predicted to say no as they need reached some
extent of saturation. With rising incomes, consumers are being lured towards cream biscuits
and cookies rather than glucose biscuits
14
Latest trends witnessed within the industry reveal that companies are engaged in improving
product packaging. Also, concerns like growing media coverage on health, rising incidence
of health conditions, increasing concerns over physical appearance, changing lifestyle and
soaring costs of healthcare have led the biscuits and cookies market to manoeuvre towards a
healthier path.
Fig 1.12
Research Objective
Research is done to carve out the important factors affecting a consumer’s preference which
lead the consumer to make a purchase decision for various products existing in this highly
active Confectionery Industry.
15
To identify the factors that a confectionery company can focus more on so as to improve
product.
Hypothesis
To know the effects of various attributes of the confectionery products on the consumer
purchase decision, the following null and alternative hypothesis have been framed:
16
LITERATURE REVIEW
1. Satnam Ubeja
Satnam Ubeja in 2014 conducted a perceptual research and identified the factors that widely
influenced complex consumer’s choice or preferences for aerated or carbonated
confectionery & non-aerated confectioneries in the city of Madhya Pradesh of India.
According to this investigation, Ubeja said he saw a checked move in the shopper decisions
or inclination from the aerated confectionery drink to non-aerated confectionery drink
refreshment, wellbeing choices. Henceforth, to benefit the confectionery industry products
change (in positive) the awareness level for their product confectioneries in the specified
targeted market of the soft drink (confectioneries) group.
For this examination, Ubeja specialists applied an approach of Factor-investigation & found
important factors that impacted consumer choices/preferences, from the questionnaire
circulated, then, also further analysed through SPSS and applied Annova on the dataset.
After factor analysis, researchers identified some independent variables such as the Price of
confectionery, Flavour associated, Social occasions / Time, and finally Packaging of
confectionery, etc. The research concluded that the consumer choices or preference are
gender agnostic. Additionally, it finished up with the most significant factor for deciding the
buy choice to be flavour and refreshment of confectioneries.
17
2. Banu mathy and Hema Meena:
In this research of consumer’s brand preference wrt confectionery industry in soft drink of
India, concluded that after the globalization, most consumer-like international brands. For
example, Pepsi, Coca-Cola. Also, consumers prefer certain brands or say a particular
confectionery, primarily for the reason of overall taste & also refreshing ability.
4. Researcher Gluckmann
18
Aerated or carbonated confectioneries are packed inside glass bottles (considering small
quantities and fragile) and also in PET (Polyethylene terephthalate). In non-aerated
categories we have Juices of all categories, milkshakes & dairy based/ milk-based
confectioneries are stuffed in tetra packs in various sizes and vibrant or lively in color.
Hence, overall look and feel and brand packaging becomes a crucial factor in deciding on a
particular drink. In light of these discoveries we consolidated the following, that are brand,
look and feel & packaging as a factor in our investigation.
5. Product Attributes
Product attributes are the features which describe creation & affect a consumer purchase
choice. They can either be tangible features, that are physically present in nature &
intangible, that are not physically present in nature. Tangible attributes comprise the
physical presence of product features such as packaging, weight, colour, aroma, sensitivity,
material composition and also quantity etc.
For instance, when we go to buy confectionery, we usually study tangible attributes such as
the ingredients, packaging, colour and also look and feel. Intangible attributes comprise of
characteristics like the overall quality (availability, serviceability, reliability etc.), the cost
associated and also the quality standards. For Eg, when we are looking to buy a new
motorcycle, we may contemplate intangible attributes like the quality of motorcycle, price of
motorcycle and safety test scores given.
6. Consumer Preferences
Choices taken for selection of options which are the most important value among other
options by a customer which satisfies his desires and/or needs. Preferences are choices that
19
are available to the consumer, out of which some are valued and some can be neutral.
Usually, preferences tend to become day by day and are always changing.
Buyer buy result can be viewed as a procedure wherein the customers assess elective items
based on different properties available and then finally pick an item to purchase. Item
properties assume a crucial job in showcasing from the point of view of both the advertiser
and consumer. It has been distinguished as a chance to separate the advertiser's image from
its rivals. Consumers value the attributes of a product as they use these attributes for
evaluating alternatives of a product, and choose a product according to their preference.
20
RESEARCH METHODOLOGY
Study Descriptive
Sampling Random Sampling
Sample Size 126
SPSS (Statistical Package
Tools Used for
for Social Sciences) & Ms-
Analysis
Excel 2016
Table 3.1
1. Data Sources
To design structured questionnaire of the factors affecting consumer purchase decision for
confectionery product, the factors are taken from extensive study of consumer preference
literature viz. journals of marketing. Primary data was composed from a sample of 126
respondents.
2. Research Design
It regularly incorporates how information was gathered, what tools are utilised, how the
instruments are utilised. Descriptive research accurately describes a population or a
situation. It is used to give answer to questions like what, when, where, when and how, but
is incapable in answering the question why. We have used descriptive research.
The descriptive research can be done by two ways:
Survey Method: - It is a method through which individual units are studied. A
questionnaire is made which is floated to the respondents.
Observation Method: - The behaviour of the respondent is observed by the
researcher.
3. Sampling
Sampling is a process which is used to determine the number of responses to be collected for
a research (based on the sampling method & Study).
21
Sampling method
We have used Random Sampling in this research. It is a technique wherein each sample has
an equivalent chance or likelihood of being picked. The total population can be represented
in an unbiased manner by selecting a sample using random sampling.
= 125.8 ~~ 126
5. Data Collection
Quantitative approach was followed. The primary data for this research has been gathered
using a structured questionnaire (Refer to Annexure 3). This questionnaire covered various
questions to extract consumer insights on different factors that make consumer choose one
confectionery product over other. An online google form for the questionnaire was
circulated to collect responses. The questionnaire covered questions to list out various
factors which lead a consumer choose a confectionery product. 24 Likert scale questions
covering various attributes of a confectionery were asked from the respondent. Apart from
these other Likert questions were asked out of which some were used for dependent variable
while applying regression and other questions helped in getting some insights about the
consumer’s buying behaviour. Some questions related to awareness about the products, their
advertisement channels etc. were also asked.
22
DATA ANALYSIS, FINDINGS & RESULT
We have used Pie Charts and Graphs from excel for interpretation of data. We have also
used SPSS in order to apply factor analysis and regression on the data to get more insights
on the main factors which affect the decision of the consumer when they buy a
confectionery product and to find the importance of each factor on the decision of the
consumer.
Following are the few pie charts and graphs based on our survey.
Fig 4.1
Out of the total 126 respondents, 70 (55.6%) were males and 56 (44.4%) were females.
23
Fig 4.2
Out of the total 126 respondents, the age group distribution is as follows: 2 (1.6%) belong to
age group less than 18, 102 (81%) belonged to the age group 18-28, 10 (7.9%) belong to age
group 28-38, 7 (5.6%) were from the range 48-58.
Fig 4.3
Out of the total 126 respondents,114 (91%) buy confectionery products, and 12 (9%) do not
buy confectionery products.
24
Fig 4.4
The main reasons for consuming confectionery products came out to be Taste as said by 54
(42.9%) and to Refresh with 46 (36.5%). Other than this 16 (12.7%) claimed the reason of
consuming confectionery is stress eating. Other reasons like cravings 5 (4%) and when
nothing else is available 5 (3.9%) also came into picture.
Fig 4.5
104 (82.5%) come across advertisements about confectionery products on Television. Social
media platforms namely Instagram (51.6% i.e. 65) and Facebook (35.7% i.e. 45) are
platforms where a lot of people come across confectionery product ads.
25
While twitter is lagging behind with just 9 (7.1%). YouTube is great in delivering ads with
53 (42.1%) people coming across ads through it. While newspaper and public banners
account for 38.9% and 48.4% respectively.
Fig 4.6
95 (75.4%) and 91 (72.2%) people like to buy chocolates and ice creams respectively. While
69 (54.8%) and 67 (53.2%) people like to buy cake and candy respectively. Only 48 (38.1%)
of the sample like to buy cookies and 44 (34.9%) like to buy other confectionery products.
Fig 4.7
26
The above graph shows that people generally buy confectionery products on a day to day
basis without any special occasion and also buy them offline rather than buying it online.
They generally buy confectionery products for self-consumption rather than for gifting
purposes. This graph also shows that reference does not create a huge impact on respondents
buying behaviour. Also, they do not generally check reviews online before deciding which
beverage to buy.
Factor Analysis
It is a data reduction technique in which large numbers of attributes are reduced into some
factors. This reduction is done by identifying some root (underlying) factors by making a
group of various attributes on the basis of the correlation between them. E.g. Here Shape,
Color, Packaging Material and Aroma of the confectionery can be identified as a part of a
single factor or dimension namely Look & Feel.
Make a list of all the attributes which the consumers might consider while he is
buying a product. Here the product is confectionery products so we have considered various
attributes like taste, shape, aroma, size, price, calorie count etc.
Collect responses using quantitative data collection techniques like surveys.
Feed the collected data in a statistical program, here we have used SPSS to apply
factor analysis and come up with fewer factors from a large number of attributes enlisted
earlier.
27
K.M.O. and Bartlett’s test
Table 4.1
Kaiser Meyer Olkin (K.M.O.) Test measures how reasonable the collected data is for Factor-
Analysis. It shows appropriateness of factor analysis. Here estimation of K.M.O. is .740
which is more than 0.5 demonstrating that the information is suitable for Factor Analysis.
For Bartlett’s test for Sphericity the null hypothesis is that the correlation matrix is an
identity matrix. This test compares correlation matrix of data to the identity matrix. Here
Chi- square value is 991.870 at degree of freedom 276. It is significant at .05, therefore
rejecting the null hypothesis. As there is Correlation between all the attributes taken, it is
necessary to apply factor analysis.
Communalities
Initial Extraction
Ingredients 1 0.676
Packaging material 1 0.685
Shape 1 0.721
Color 1 0.769
Brand name 1 0.689
Size of packet 1 0.682
28
Customized Product 1 0.42
Baked 1 0.469
Aroma 1 0.628
Locally hand made 1 0.576
Milk over Non milk 1 0.708
Cocoa flavored over sweet 1 0.639
High refreshing ability 1 0.506
Sugar free 1 0.58
Energy bar 1 0.708
Calorie count 1 0.722
Health over taste 1 0.661
No preservatives 1 0.454
Compare prices 1 0.759
Price versus quantity 1 0.698
Price and switching 1 0.64
Quality standards 1 0.667
Temperature 1 0.668
Cold over hot 1 0.588
Extraction. Method: Principal Component Analysis.
Table 4.2
Communality measures correlation of one variable with other variables. The higher the
value of communality, the well it is. If the value of communality for a variable is low i.e.
between 0.0 - 0.4, then it will be tough for that variable to load on a factor significantly.
Here communality of all the variables are greater than 0.4.
29
Total Variance Explained
Extraction Sums of Squared Rotation Sums of Squared
Initial Eigen values
Loadings. Loadings
% of Cumulative % of Cumulative % of Cumulative
Component Total Total Total
Variance % Variance % Variance %
1 5.89 24.538 24.538 5.889 24.538 24.538 3.1 12.916 12.916
2 3.31 13.781 38.319 3.308 13.781 38.319 2.933 12.221 25.137
3 1.75 7.278 45.597 1.747 7.278 45.597 2.726 11.356 36.493
4 1.69 7.058 52.655 1.694 7.058 52.655 2.701 11.253 47.746
5 1.5 6.235 58.891.496 6.235 58.89 2.214 9.226 56.972
6 1.18 4.925 63.816 1.182 4.925 63.816 1.642 6.844 63.816
7 0.99 4.106 67.922
8 0.85 3.554 71.476
9 0.8 3.322 74.798
10 0.74 3.077 77.875
11 0.64 2.683 80.558
12 0.63 2.612 83.17
13 0.59 2.447 85.617
14 0.48 2.016 87.633
15 0.48 2.001 89.634
16 0.4 1.672 91.306
17 0.38 1.571 92.877
18 0.33 1.357 94.234
19 0.31 1.306 95.541
20 0.29 1.189 96.73
21 0.24 0.995 97.725
22 0.21 0.877 98.603
23 0.2 0.833 99.436
24 0.14 0.564 100
Extraction. Method: Principal Component Analysis.
Table 4.3
Eigen values can be stated as the measure of how much of the variance of the observed
variables a factor explains.
We have selected an Eigen value method in order to count the total number of factors. Here
6 components have Eigen value greater than 1, so there are mainly six factors that affect the
purchase decision of a consumer while they choose to buy a confectionery product.
30
The column of Cumulative variance percentage, as the name suggests shows the total
percentage of variance which accounts the sum of present as well as all preceding factors.
Here, the value in the sixth row is 63.816 which states that 63.816% of total variance is
accounted together by the first six factors.
Scree plot
Fig 4.8
Scree plot is a line graph of the principal components or variable’s Eigen values. The scree
plot helps in determining the exact number of factors to be kept for further analysis. Here the
scree plot determines the number of factors to be six for further analysis.
31
Rotated Component Matrix
Rotated Component Matrix•
Component
1 2 3 4 5 6
Ingredients 0.529 0.145 -0.030 0.410 0.423 -0.165
Packaging material 0.136 0.076 0.365 0.708 0.162 0.000
Shape 0.188 0.219 -0.014 0.780 0.051 0.160
Color -0.024 0.051 0.024 0.867 0.020 0.115
Brand name 0.058 0.412 0.310 234 0.601 0.060
Size of packet 0.057 -0.035 0.382 0.594 0.150 0.396
Customized product 0.307 0.370 0.028 266 0.075 0.335
Baked 0.375 0.107 0.123 -0.021 0.335 0.435
Aroma -0.013 -0.069 0.483 294 0.159 0.527
Locally hand made -0.078 0.148 0.112 0.055 0.564 0.463
Milk over Non milk 0.198 -0.007 -0.053 0.122 0.129 0.796
Cocoa flavored 0.069 0.047 -0.138 0.047 0.093 0.776
over sweet
High refreshing 0.120 0.345 0.577 0.091 0.143 0.104
ability
Sugar free 0.657 0.039 -0.129 0.092 0.237 0.257
Energy bar 0.772 0.055 215 -0.185 -0.158 0.066
Calorie count 0.819 -0.149 -0.082 0.150 -0.022 -0.005
Health over taste 0.681 0.010 -0.124 0.186 0.333 -0.190
No preservatives 0.467 0.021 0.180 0.181 0.390 0.132
Compare prices 0.079 0.857 0.102 -0.030 0.053 -0.062
Price versus -0.097 0.752 294 0.115 0.102 -0.114
quantity
Price and switching -0.059 0.757 -0.064 0.182 0.013 0.160
Quality standards 0.159 0.124 0.517 0.012 0.599 -0.015
Temperature -0.046 -0.127 0.752 0.147 -0.231 -0.100
Cold over hot -0.179 0.321 0.646 -0.129 0.119 -0.071
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization. •
Table 4.4
By analyzing the table 4.4, the factors are named and interpreted. The attributes with factor
loading greater than 0.4 are considered and others are rejected. Here, the factor loading of
the attribute customization is less than 0.4 in every column, so it is not significantly loaded
and hence rejected. The more elaborated factor loading is shown in Annexure 2.
32
Health Consciousness
Price
Temperature
Taste
Health Consciousness
The rising concerns of health complications and obesity have increased the consumer’s
health consciousness over the past few years. This factor tries to throw a light on the focus
of consumers on calorie count, ingredients, sugar content, preservatives and energy
delivered by a confectionery product. It also tries to cover a situation of a trade-off between
health and taste for consumers while buying confectionery products.
Price
This factor includes the price value of money for a confectionery by the consumer. It covers
the comparison of prices done by consumers while buying confectioneries. It also talks
about the Price versus Quantity considered by consumers and the switching of consumers
while the price increases.
Temperature
While a consumer buys a confectionery, its temperature has an impact on the decision of the
consumer when he chooses from a variety of confectionery products which have different
temperatures. The factor measures the preference of hot and cold confectioneries, and the
refreshing ability associated with them.
33
This factor includes all the attributes of a confectionery product that a human sees and feels.
It starts from the packaging material of the confectionery to the shape of the bottle, color and
its aroma. Packaging of confectionery products are largely different based on their type.
Confectioneries like cake, donut and pastry are packed inside cardboard boxes, products like
ice cream have packing according to their size, chocolates have two to three layers of
packing including plastic and paper wrappers and Candies and gums are generally available
in small plastic wrappers. Also, the packaging of a product depends upon how they are
prepared i.e. they are fried or baked. Hence, overall look and feel and brand packaging
becomes a crucial factor in deciding a particular confectionery product. The aroma and color
impact the confectionery choices. Hence, overall look and feel becomes a deciding factor in
the selection of confectionery products.
This factor includes all the quality standards and specifications when looking for a
confectionery product. Consumers have scored a high value in this factor as they are quality
conscious. This factor also throws a light on people’s preference while choosing from an
option of buying branded confectioneries and locally handmade confectioneries.
Taste
The sixth factor is taste. Fig shows that 42.9% of the sample chose taste as the reason for
consuming a confectionery product. Taste is a major factor which drives the consumer’s
purchase decision. Every consumer has a different preference of flavors, some like cocoa
flavored confectionery products, some like sweet confectionery products, the taste
preference also varies on the main constituents of the confectionery products, like milk
based and non-milk-based confectioneries. Some like sweet and baked confectioneries,
while some like fried or low sweet content in confectioneries. This factor aims at measuring
these.
Regression Analysis
34
Main objective of applying regression analysis is to find the impact of every independent
variable on a dependent variable. Here we have taken factors Price, Health Consciousness,
Quality, Taste, Temperature, Look & Feel which are identified above using factor analysis
as the independent variables. The consumer’s purchase decision is considered as a
dependent variable.
A regression equation is formed by using the result obtained after applying regression in
SPSS. This equation describes and measures the influence of each identified independent
variables i.e. predictors on dependent var.
Fig 4.9
Table 4.5
The six predictors namely Price, Health Consciousness, Quality, Taste, Temperature and
Look & Feel in the model revealed the ability to predict Purchase decision. Adjusted R^2
value is 0.546 which denotes that 54.60% of the observed variability in purchase decision is
explained through independent variables mentioned above. The value of R square (R^2) i.e.
56.8% shows that there are some other variables which were not included in the study and
could have an influence on purchase decision.
35
Table 4.6
In anova table, the regression model is appropriate as it is significant at .05 with F value as
38.909. So, we can use this model for our analysis.
Table 4.7
It can be seen that consumers give most importance to health, followed by Look & Feel,
Taste, Price, Quality, and Temperature.
Result
When consumers buy any product, they take into consideration various attributes of the
product. Here the product considered is confectionery products. We came up with 24
attributes of confectioneries to find the various factors which affect the consumer’s purchase
36
decision in confectionery products. To do so factor analysis was applied to reduce the
attribute into some factors by grouping them on the basis of correlation between them. The
factors obtained were namely Price, Health Consciousness, Quality, Temperature, Taste, and
Look & Feel. To further find the impact of each of these independent factors on the
consumer purchase decision, which was considered as the dependent variable, Regression
analysis was applied, which lead us to the conclusion that consumers give most importance
to health, followed by Look & Feel, Taste, Price, Quality, and Temperature while buying a
confectionery product.
37
MANAGERIAL IMPLICATIONS
The rising concerns of health complications and obesity have increased the consumer’s
health consciousness. The companies should focus more on innovating products which are
healthy.
The companies should give most importance to health, followed by Look & Feel, Taste,
Price, Quality, and Temperature while creating a confectionery product.
The aroma, colour, packaging influences the consumer purchase decision, so the company
should focus on improving these features.
The confectionery company should advertise their products more on television, Facebook
and Instagram rather than on twitter, radio and other advertisement channels.
The confectionery companies should focus more on the availability of their product on
offline stores rather than online stores, because it is found that consumers prefer to buy
confectioners more from offline stores.
The confectionery companies should focus less on creating gift packs, as consumers
generally buy confectioneries for self rather than for gifting purposes.
38
LIMITATIONS
The data on which we have applied our analysis is not large enough.
The attributes which have been considered can have more innovation and can also be more
varied for a confectionery product.
When it comes to real life problems and projects of the companies, the research becomes
vaster and more complicated than the research done in this study. As we have used online
questionnaires (google forms) for the collection of data, biases and errors can occur in case
of complex questions.
While purchasing a confectionery product, sometimes the customers give more importance
to the emotional factor, rather than evaluating various confectionery products on rational
terms. It is hard to capture the emotional factor.
There is less interaction between the researcher and the respondent leading to error.
There might be some error in data due to the respondent’s deficiency of awareness and
knowledge about the confectionery products, poor memory or Incapability to point out what
is the main motive behind buying a particular confectionery product out of so many options
available.
The inability and inefficiency of the researcher to form a question in a manner that every
respondent understands the question in the same manner.
39
REFERENCES
2. Gupta, A., & Malik, R. M. (n.d.). Indian Confectionery Industry Report. Indian
Confectionery Market. Retrieved March 15, 2021, from https://invest-india-revamp-static-
files.s3.ap-south-1.amazonaws.com/s3fs-public/2020-01/Indian%20Confectionery
%20Industry%20Report%20v2%20(1).pdf
40
12. “About Amul”.
Retrieved from www.amul.com
13. Liao, S.L., Shen, Y.C. and Chu, C.H., 2009. The effects of sales promotion strategy,
product appeal and consumer traits on reminder impulse buying behaviour. International
Journal of Consumer Studies, 33(3), pp.274-284.
41
ANNEXURES
Annexure 1
Calculating π
And, 1- Π= 0.09
42
Annexure 2
Rotated Factor
Factor-Labels & components Loading
Health-Consciousness
Ingredients
Ingredients 0.529
Sugar Free 0.657
Energy Bar 0.772
Calorie Count 0.819
Health Over Taste 0.681
No Preservatives 0.467
Price
Compare Prices 0.857
Price versus Quantity 0.752
Price and switch 0.757
Temperature
Cold over hot 0.646
Temp 0.752
Refreshing ability 0.577
Look and feel
Packaging Material 0.708
Shape 0.78
Color 0.867
Size of packet 0.594
Quality
Quality Standards 0.599
Brand Name 0.601
Local Hand Made 0.564
Taste
Baked 0.435
Milk based versus Non-milk based 0.796
Cocoa versus sweet 0.776
43
Annexure 3
Questionnaire:
1. Name
o Male .
o Female .
o other
o Less than 18
o 18-28
o 28-38
o 38-48
o 48-58
o Above 58
3. Do you buy Confectionery products (Cake, Chocolate, Candy, Gum)? Any of the
category
o Yes
o No
o Yes
o No
o Craving
o Stress eating
o Taste
o Refresh myself
44
6. I come across advertisements about Confectionery products
o Newspaper
o Television
o Facebook
o Instagram
o Twitter
o Public banner
o Radio
o YouTube
o Chocolate
o Ice cream
o Cake
o Candy
o Cookies
o Others
45
Read the statements carefully: - Please mark the level of agreement or disagreement with
following statements by selecting your choice.
Likert scale questions rating from 1-5.
Where, [1] = “Strongly Disagree”, [2] =Moderately Disagree, [3] = Neutral, [4] =
Moderately Agree & [5] = “Strongly Agree”
46
I prefer Confectionery products with no preservatives
Temperature of the Confectionery products affects my decision of choosing a
Confectionery product
I generally prefer cold Confectionery products over hot Confectionery products
I compare prices of different Confectionery products while buying
I consider the price versus quantity of the Confectionery products while buying
If the price of Confectionery products increases, I think of switching to some other
Confectionery products
I buy Confectionery products mainly on occasions
I buy Confectionery products online rather than offline
I generally buy Confectionery products for self rather than for gifting purpose
I choose to buy a Confectionery product on reference given by friends and family
(Word of mouth)
I buy Confectionery products by checking reviews online
I select which Confectionery products to buy from many other alternatives available
I consider various attributes before buying a Confectionery product
47