FRESH FRUIT JUICES-A STUDY ON CONSUMER PREFERENCE AND DEMOGRAPHIC PROFILING

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1 FRESH FRUIT JUICES-A STUDY ON CONSUMER PREFERENCE AND DEMOGRAPHIC PROFILING Pooja Boga, Tejaswini Khanolkar ABSTRACT Consumer buying behavior is a generic term which explains consumer which explains consumer choice and preference for a particular product. This study is carried out to analyze the consumer perception towards various soft drink categories. It also attempts to identify the reasons for variations in perception of different individuals. The study focuses on consumption pattern of various soft drinks in the age group between 14 to 60 years of age & carries detailed analysis of preferences of these populations. Data was analyzed using statistical tools in order to establish relationships between perception of consumer and various demographic variables. The respondents were targeted from different areas of Mumbai, Surat, Ahmadabad, and Dubai. The responses collected were analyzed using statistical tools and several conclusions were drawn. INTRODUCTION Beverages are an essential part of today s generation. Consumption of various soft drinks depends on several factors. In modern life there are different kinds of soft drinks available in the market such as aerated drinks, flavored drinks, milk based drinks, fruit juices and fruit based drinks. Soft drink not only quenches thirst but has also become a style statement and fashion.the aim of the study is to know what the view point of consumers is. The study also attempts to identify pattern of their behavior as to what encourages them to consume a particular drink and reasons to avoid consuming a particular drink. Consumers nowadays have varieties of drinks which influence the consumer perception towards a particular drink. LITERATURE REVIEW The following literature review clearly defines the previous studies made to determine consumer perception for fresh fruit juices. As per study made by P Raegrt, W Verbeke, F Devieleghere, sales of packaged fruit juices is rapidly increasing because of its convenience and healthiness. The likelihood of buying fresh fruit juices is more among educated consumers and among consumers with young children. Though consumer perception of price, quality and value are considered as pivotal determinants of consumers buying behavior and drink choice (bishop 1984, Doyle 1984, Jacoby Olson 1985). Difference in information effects due to interaction with juice type, consumer background attitudes and socio demographics. Consumers with a high neophobia reported a lower liking for

2 unfamiliar fruit juices. Health oriented consumers were more likely to comprise on taste for an eventual health benefit, though they still preferred the best tasting juice.consumer background attitudes and socio demographic of fruit juices influenced consumer acceptance. (Sara Sabbe, Wim Verbeke, Rosires Deliza) Today there is increasing demand for healthy and nutritional products as a consequence of consumers being better educated and more demanding which leads to a need for new products and a more differentiated food product assortment (Linnerman et al; 1999). Health, nutrition, taste, price convenience are some of the criteria consumers use to determine Which product is more attractive (Bech-larsem et al 1999). According to hutching (2013) package and color of fruit juice influences consumers perception. The increase in consumption of fruit juice is likely the result of change in lifestyle, convenient access to large number of brands options(albott 1990),as per the study made in china the consumers are influenced by factors other than income, change in lifestyle play a major role in structural changes in consumer perception. According to (Granato et al 2010), with rapid pace of life more consumers will chose to substitute fresh fruit with more convenient products such as fruit juices. The possible variable that influence buying behavior of consumers are price of the fresh fruit juices, price of substitute beverages, household income,seasonality, brands, demographics, and advertising (Andrew et al.2008, Pollack 2001,Pollack et al.2013,brown and Lee1999,Kinnucan et al.2001,dooley et al 2000). In a study conducted by Pollack et all 2003 U.S.A, the outcome showed that males consume a larger share of all kinds of fruit juices as compared to females. Those in age group of 20 to 29 accounted the larger share of fruit juices and drinks consumption. They also concluded that there was an obvious difference among the consumers preferences for fruit juices corresponding to their income. Gupta and Gupta (2008) discussed that fruit juices are mostly used in urban households. Today markets are flooded with large variety of fruit juices e.g.; mango, apple, fruit juice. The main reason for it is changing lifestyle and health consciousness among consumers. RESEARCH OBJECTIVES To understand consumer perception towards soft drinks. To understand buying behavior of consumers. To understand correlation between various demographic variables and buying behavior. To understand consumer preference towards soft drinks.

3 RESEARCH METHODOLOGY A primary survey was undertaken in Mumbai locality by taking into considerations various parameters. A questionnaire consisting of 15 questions were sent to number of people of different age groups. Out of which 53 responses were shortlisted for undertaking detail study. The questionnaires were sent to the respondents via . The questionnaire was combination of open ended and closed ended questions related to the study. The responses of 35 males and 17 females were recorded to carry out the analysis. Independent variables- age, income, gender and profession Dependant variables-weekly spent on soft drinks, frequency of consumption, and preference for different categories of drink. Research design: Sampling design: 1. Type of population- infinite 2. Sampling unit- Mumbai Profile of respondents - Male 67% Gender Female 33% Female Male Grand Total Age of respondents -

4 age % age % age 28 & above 13% age % age % age % DATA ANALYSIS & INTERPRETATION Major findings: Weekly spent on fresh fruit juices <Rs.100 Rs.100-Rs.200 Rs.200-Rs.300 >Rs.300 Factors contributing the preference of fruit juices

5 Taste Price Advertising Packaging PROPOSED HYPOTHESIS 1. The average age of consumers who consume fruit juices is more than 35 years. 2. The consumption of different fruit juices is independent of income. 3. The weekly spent on beverages is same across sub categories 4. The weekly spent on fruit juices is dependent on age, income and weekly spent on aerated soft drinks. 5. There is no difference in weekly spent of consumer across genders and different categories. 6. The weekly spent on beverages is same across sub categories 7. More than 70% of consumers spent Rs 50 weekly on fruit juices.

6 1. The average age of consumers who consume fruit juices is more than 35 years. Ho:µ<= 35 Ho:µ> 35 Age (in yrs ) z-test right tail test Mean x' 10% Standard Error % Median µ Mode X' Standard Deviation 4.39 s µ 35 Sample Variance S Kurtosis 4.40 sqrt(n) Skewness 2.13 x'-µ Range s/sqrt(n) Minimum Maximum Sum 1, Count n 0.10 DECISIOP VALUE IS LESS THAN ALPHA SO WE REJECT THE NULL The average age of consumers who consume fruit juices is more than 35 years 2. There is no difference in weekly spent of consumer across genders and different categories. Cha: the weekly spent on fruit juices is the same across different categories cho the weekly spent on fruit juices is the not same across different categories Rha the weekly spent on fruit juices is the same across gender Rho the weekly spent on fruit juices is not the same across gender Anova: Two-Factor With Replication SUMMARY What is your weekly swhat is youtotal Female Count Sum 2, , , Average Variance 10, , , Male Count Sum 1, , , Average Variance 1, , , Total Count Sum 3, , Average Variance 6, , ANOVA Source of Variation SS df MS F P-value F crit alpha Sample 14, , Columns 2, , Interaction 21, , p value >alpha so we accept the null,so we cannot analyze further Within 329, , Total 367,

7 3. The weekly spent on for beverages is same across different sub categories. Ho: Ha: The weekly spent on for beverages is same across different sub categories The weekly spent on for beverages is not same across different sub categories Anova: Single Factor SUMMARY Groups Count Sum Average Variance Column , , Column , , Column , , Column , , Column , , Column , , ANOVA Source of Variation SS df MS F P-value F crit alpha Between Groups 4, p value is greater than alpha so we accept the Within Groups 1,336, , Total 1,341, decision The weekly spent on for beverages is same across different sub categories 4. The weekly spent on fruit juices(y) is dependent on age, income and weekly spent on aerated soft drinks. SUMMARY OUTPUT Y FRUIT JUICE X1 AGE Regression Statistics X2 MONTHLY FAMILY INCOME Multiple R 0.63 X3 AERATED SOFT DRINKS R Square 0.39 Adjusted R Square 0.35 <60%, WEAK Standard Error Observations ANOVA df SS MS F ignificance F Regression ,13, , Residual ,75, , Total ,88, Coefficients Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%Upper 95.0% Intercept (17.18) (0.37) 0.71 (110.33) (110.33) Age (X1) (1.24) 6.77 (1.24) 6.77 Monthly Family Income (X2) (0.00) 0.00 (0.81) 0.42 (0.00) 0.00 (0.00) 0.00 Aerated soft drinks (X3) y= (17.8)+2.77*age+0.00*montly family income+spent on aerated drinks Decision- Since Adjusted R Square is <60%,there are some more variables that influence the weekly spent on fresh fruit juices.

8 5. The weekly spent on beverages is same across sub categories Ho: Ha: The weekly spent on for beverages is same across different sub categories The weekly spent on for beverages is not same across different sub categories Anova: Single Factor SUMMARY Groups Count Sum Average Variance Column , , Column , , Column , , Column , , Column , , Column , , ANOVA Source of Variation SS df MS F P-value F crit alpha Between Groups 4, p value >alpha, so we accept the null Within Groups 13,36, , Total 13,41, Decision- The weekly spent on for beverages is same across different sub categories 6. The consumption of different fruit juices is independent of income 7. More than 70% of consumers spent Rs 50 weekly on fruit juices.

9 N p < 60% A p > 60% T Praportion test x 35 T Right tail test n 52 A 10% p' 0.67 P 90% p 70% C (1.28) q 30% 0.42 O (0.42) P 0.34 A 0.1 p value >alpha D Accept the Null, Since the blue line lies in the acceptance region Decision Therefore more than 70% of consumers spent Rs.50 weekly on fruit juices 1.28 CONCLUSION After carrying out the research on consumers perception on fresh fruit juices, we concluded that there are various factors that influence consumers buying behavior for fresh juices. Taking into consideration all the previous studies made on the same topic we conclude that age, income, gender, education, profession price, packaging and advertisement are the factors that affect consumer perception. Through literature review and data collected we understood that the preference for fresh fruit juices is the same among genders. People above 35 years of age consume fresh juices as compared to others. Youth below 30 years of age prefer consuming other type of drinks over fresh fruit juice. After undertaking various tests we concluded that the weekly spent on fresh fruit juices by various consumers is same irrespective of their gender. Also the weekly spent on fresh fruit juices is dependent on the income of the consumer, his spending on aerated drinks, the age of the consumer and several other factors. The consumption of fresh fruit juices by various respondents is not dependent on their income. Majority of health conscious people prefer consuming fresh fruit juices. The amount of money spent by consumers on weekly basis is same for all categories of

10 drinks. The minimum spent is Rs.50 by majority of consumers. Moreover both male and female spent equally on various fresh fruit juices. Therefore markets can use this study to target their prospective consumers. Through this project we conclude that fresh fruit juice is consumed by middle aged population and people who are health conscious. The companies dealing in juices can develop their marketing strategies with the help of the study conducted. REFERENCES 1. P Raegrt, W Verbeke, F Devieleghere- Consumer perception and choice on minimally processed vegetables and packaged fruits. 2. Bishop 1984, Doyle 1984, Jacoby Olson (Sara Sabbe, Wim Verbeke, Rosires Deliza),effect on health claim and personal characteristics and consumer acceptance of fruit juices. 4. (Linnerman et al; 1999). 5. (Bech-larsem et al 1999). 6. Valarie Zeitheml-Consumer perception of price, quality and value. 7. (Albott 1990), Granato et al (Andrew et al.2008, Pollack 2001, Pollack et al.2013, Brown and Lee1999, Kinnucan et al.2001, Dooley et al 2000). - Chinese consumer knowledge perception and willingness to pay for orange juices.