A STUDY ON CONSUMER BEHAVIOUR TOWARDS NESTLE

PRODUCTS WITH REFERENCE TO VIT UNIVERSITY, VELLORE.

PROJECT REPORT
Submitted for: BUSINESS ECONOMICS (CCA1002)
SLOT B1
SUBMITTED BY
K.MOUNICA 16BCC0033
PAVITHRA MOORTHY 16BCC0128
D.RAJUL 16BCC0007
B.DHARSHINI 16BCC0037
R.NIVETHA 16BCC0040

Under the supervision of

Dr. N. Savitha
Assistant Professor,
Department of Social Sciences
School Of Social Science and Languages,
VIT University
Vellore - 632014

November 2016

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 DECLARATION
We, the students of B.Com, Ist year of VIT University, Vellore with registration number
and names K.MOUNICA 16BCC0033, PAVITHRA MOORTHY 16BCC0128, D.RAJUL
16BCC0007, B.DHARSHINI 16BCC0037, R.NIVETHA 16BCC0040.
Hereby , declare that the project report entitled A STUDY ON CONSUMER
BEHAVIOUR TOWARDS NESTLE PRODUCTS WITH REFERENCE TO VIT
UNIVERSITY, VELLORE submitted by us to VIT University, Vellore, in partial fulfillment
of the requirement for the course BUSINESS ECONOMICS with the course code CCA1002,
of the degree of Bachelor of Commerce is a bonafide work carried out by us under the
supervision of Dr.N.Savitha Assistant Professor, Department of Social Sciences, School of
Social Sciences and Languages, VIT University, Vellore 632014. We further declare that the
work reported in this project has not been submitted and will not be submitted, either in part or in
full, for the award of any other degree or diploma in or any other Institute or University.

Place: Vellore
Date:

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 CERTIFICATE
This is to certify that the project work entitled A STUDY ON CONSUMER
BEHAVIOUR TOWARDS NESTLE PRODUCTS WITH REFERENCE TO VIT
UNIVERSITY, VELLORE submitted by K.MOUNICA 16BCC0033, PAVITHRA
MOORTHY 16BCC0128, D.RAJUL 16BCC0007, B.DHARSHINI 16BCC0037,
R.NIVETHA 16BCC0040.
To VIT University, Vellore, in partial fulfillment of the requirement for the course
BUSINESS ECONOMICS with course code CCA1002, of the degree of Bachelor of
Commerce, is a bonafide work carried out by him/her under my supervision. The project fulfills
the requirement as per the regulations of this University and in my opinion meets the necessary
standards for submission. The contents of this report have not been submitted and will not be
submitted either in part or in full, for the award of any other degree or diploma in this Institute or
any other Institute or University.

Place: Vellore
Date: Dr. N. Savitha
Assistant professor

Dr . N. Sundaram Dr . K. Revathi
Head of the Department Dean, SSL
Department of Commerce, SSL

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 ACKNOWLEDGEMENT
At the outset, we thank the Almighty God for his blessings for granting us the knowledge
and right aptitude to successfully complete our project work.
We would like to express our special gratitude and thanks to our guide Dr. N. Savitha,
Assistant Professor, School of Social Sciences and Languages, whose esteemed guidance and
immense support encouraged us to complete the project successfully.
We wish to express our sincere thanks to Honorable Chancellor, Dr. G. Viswanathan;
esteemed Vice-Presidents, Shri. Sankar Viswanathan; Shri. Sekar Viswanathan and Shri. G.
V. Selvam; respected Vice Chancellor, Dr. Anand A. Samuel; respected Pro-Vice Chancellor
Dr.V.Raju; respected Pro-Vice Chancellor Dr. S. Narayanan of this prestigious VIT University,
Vellore for providing us an excellent world class academic environment and facilities for
pursuing our B.Com Programme.
Our sincere gratitude lies to the Dean, Dr. K. Revathi, School of Social Sciences and
Languages, and Head of the Department of Commerce for providing us an opportunity to do
our project work in the VIT University.
We also thank all the faculty members of the Department of Commerce and faculty of
other departments of the School of Social Sciences and Languages and the non-teaching staff for
giving us the courage and strength that we needed to achieve my goals.
Our special thanks to our friends for their timely help and suggestions rendered for the
successful completion of this project.
This acknowledgement would be incomplete without expressing our whole hearted
thanks to our parents for their continuous support and guidance in all walks of our life.

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 CONTENTS
S.NO TITLE PAGE.NO

CHAPTER - 1
INTRODUCTION 7 12
1.1 Introduction 7

1.2 Consumer behavior 7

1.3 Company profile 8 10

1.4 Scope of the study 11

1.5 Objectives of study 11

1.6 Research methodology 11 12

1.7 Limitations of study 12

CHAPTER II
REVIEW OF LITERATURE 13 18
2.1 Introduction 13

CHAPTER III
DATA ANALYSIS AND INTERPRETATION 19 33
3.1 Introduction 19

CHAPTER IV
SUGGESTIONS AND CONCLUSION 34
4.1 Introduction 34

4.2 Suggestions 34

4.3 Conclusion 34

Bibliography 35

Appendices

S.NO TITLE PAGE.NO

1 Age of the respondents 19

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 2 Gender of the respondents 20
3 Consumption of nestle product 21
4 Buying frequency of nestle product 22
5 Preference of nestle product 23
6 Loyalty towards nestle brand 24
7 how far you think flavor is important 25
8 How far you think price is important 26
9 How far you think quality is important 27
10 How far you think is packaging important 28
11 How far you think brand is important 29
12 Influential factors to purchase nestle 30
13 Favorite product of nestle 31
14 Other company instead of nestle 32
15 Dissatisfaction with nestle 33
LIST OF TABLES

CHAPTER I
INTRODUCTION
1.1 Introduction
In this research we have survey the product performance and buying behavior of the
famous brand of products Nestle, which are consumed by people of all ages. During this
research we have interacted with students of VIT University. After this research we came to
know how people perceives these products on the variables like price, quality, advertisement,
satisfaction, taste, packaging, brand loyalty etc. we also came to know which particular kind of
products is most preferred by people of different age groups. In this research we have surveyed

6
that how frequently and how much they prefer to consume, whether they buy small, big or family
pack. Trend of ongoing changes in their likings has been shown in the report. In this report we
have tried to explain the entire research and facts of Nestle products wise.

1.2 Consumer behavior

All marketing starts with the consumer. So consumer is a very important person to a
marketer. Consumer decides what to purchase, for whom to purchase, why to purchase, from
where to purchase, and how much to purchase. In order to become a successful marketer, he
must know the liking or disliking of the customers. He must also know the time and the quantity
of goods and services, a consumer may purchase, so that he may store the goods or provide the
services according to the likings of the consumers. Gone are the days when the concept of
market was let the buyers beware or when the market was mainly the sellers market. Now the
whole concept of consumers sovereignty prevails. The manufacturers produce and the sellers
sell whatever the consumer likes. In this sense, consumer is the supreme in the market.

As consumers, we play a very vital role in the health of the economy local, national or
international. The decision we make concerning our consumption behavior affect the demand for
the basic raw materials, for the transportation, for the banking, for the production; they effect the
employment of workers and deployment of resources and success of some industries and failures
of others. Thus marketer must understand this.

Consumer behavior is the study of when, why, how, and where people do or do not buy
product. It blends elements from psychology, sociology, social anthropology and economics. It
attempts to understand the buyer decision making process, both individually and in groups. It
studies characteristics of individual consumers such as demographics and behavioral variables in
an attempt to understand people's wants. It also tries to assess influences on the consumer from
groups such as family, friends, reference groups, and society in general.

The study of the consumer behavior not only focuses on how and why consumers make
buying decision, but also focuses on how and why consumers make choice of the goods they buy
and their evaluation of these goods after use. So for success of any company or product
promotion it is very necessary to depart its concentration towards consumer behavior.

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1.3 Company profile
Although Nestle has been associated with India since the beginning of the century through
the importing and trading of infant food and condensed milk, manufacturing in India only began
with the setting up of the factory in Moga in 1962. The first product to be manufactured was
Milkmaid. In the last 35 years the company has shown rapid progress and has increased its
product range to 80 products as of October 1997. Nestle India Ltd. now ranks 22nd amongst
Indias most valuable companies. This remarkable growth has been achieved through -
Rapidly creating greater manufacturing capacity, both at factories as well as with co-packers.
Taking measures to ensure availability and improved quality of key raw materials - fresh
milk in particular.
Strengthening of the sales and distribution network (particularly in smaller towns)
Ambitious and cohesive manpower training and development programs for the personnel of
the company across all disciplines.
A key factor for Nestls success has been its quest for continuous improvement through
ushering in greater productivity and more efficiency in everyday operations. Despite the
infrastructure impediments in India, Nestle has set itself high standards of business
performance. This is reflected through the essence of the company - its mission statement.
Nestls mission
To be in every way the leading company in the Indian food industry and a good
corporate citizen by providing our consumers with superior quality products, our shareholders
with rapid growth & fair returns and our employees with a challenging and satisfying work
environment.
To translate this spirit into a planned and measurable process, Nestle has set up key
objectives across all divisions.

Production
To optimize production costs while enhancing product quality so as to make Nestle products
even more competitive in the market place.
Factories
Nestle has 6 factories in India. These are

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 1. Moga (Punjab): The Nestle factory in Moga has the pride of being the first and most
comprehensive factory of Nestle India. Set up in 1962, it represents the core competence of
Nestle India in the manufacture of milk products (Everyday, Milkmaid), beverages, culinary
products (Maggi sauces, noodles, soups etc.), weaning cereals (Cerelac) and infant milk
formulae.
2. Choladi (Tamil Nadu): The factory in Choladi started production in 1967. It has about,
the factory today has 81 employees and produces 1.5% of the total turnover of Nestle India.
It is a 100 Percentage export oriented unit which processes freshly picked tea leaves into
soluble instant tea.
3. Nanjagud (Karnataka): Production in this factory began in 1989 with the manufacture of
Nestle instant coffee and Sunrise. Today in addition to instant coffee the factory also
manufactures health beverages. The plant to manufacture MILO was also commissioned at
this factory. This factory employs 145 people and is cited as a model in terms of environment
protection for its installations to purify waste water as well as for its provisions for recycling
coffee wastes.
4. Samalakha (Haryana): This factory was set up in 1993. Located 70 kilometers from
Delhi, it manufactures weaning cereals, culinary products, health beverages and milk
products. Recently the expansion of manufacturing capacity for Milkmaid Dessert Mixes was
undertaken at this factory as this new and unique product category is viewed to have great
potential in the future.
5. Ponda (Goa): This Kit-Kat factory was set up in Goa in 1995 at a cost of Rs. 50 crores. It
represented a major step by Nestle towards becoming the Number 1 Chocolates and
Confectionery Company in India.

6.Bicholim (Goa)
The construction work at this new factory is progressing with speed. This factory will
soon commence the manufacture of culinary products, which is a key thrust area for the company
and will include latest technological improvements relating to this category of products.
Nestle products even more competitive in the market place. Drawing upon Nestls
global experience and manufacturing expertise in 75 countries the team identified the following
areas for detailed study -

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 Process improvement to ensure the optimal usage of resources
Improvement of operational efficiency
Cost optimization
A series of small but critically important initiatives ranging from redesigning laboratories
to palletisation of raw materials and packaging material utilization, manufacturing and filling
loses and labor man hours resulting in substantial savings and improved productivity and
machine utilization. In addition, several non-tangible benefits in the form of systems for
sustainable improvement in areas like factory maintenance planning tools , down time recording
systems and performance measurement tools were also realized.
New product launches
To put all the product launches into perspective, Nestle now has 80 products including
various flavors and variants this awesome list of 80 products for most companies is an overfull
palate. Nestle India Ltd. Still have a variety of new products in the pipelines. It believes in
slowly colonizing as much territory as fast as it can, adapting to native conditions and then work
at holding off the advancing herds. Nestle products can be broadly classified into 5 main
ranges -
Milk Products
Chocolate and Confectionery
Beverages
Culinary
Food service
1.4 Scope of the study
As learning is a human activity and is as natural, as breathing. Despite of the fact that
learning is all pervasive in our lives, psychologists do not agree on how learning takes place.
How individuals learn is a matter of interest to marketers. They want to teach consumers in their
roles as their roles as consumers. They want consumers to learn about their products, product
attributes, potential consumers benefit, how to use, maintain or even dispose of the product and
new ways of behaving that will satisfy not only the consumers needs, but the marketers
objectives.

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 The scope of my study restricts itself to the analysis of consumer preferences, perception
and consumption of Nestle Chocolates. There are many other brands of chocolates available but
my study is limited to two major players of chocolates leaving behind the others. The scope of
my study is also restricts itself to Vellore region only.
1.5 Objectives of the study
This project is based on the comparative study consumer behavior towards Nestle
products. Objectives of the study are:
1. To study the consumer behavior and their satisfaction towards the products of nestle.
2. To analyze the factor influencing the buyer decision of the consumers.
3. To determine the level of effectiveness of the advertisements.
1.6 Research methodology
This chapter describes the methodology of the study. This project is based on information
collected from primary sources. After the detailed study, an attempt has been made to present
comprehensive analysis of consumption of Nestle products consumed by the people. The data
had been used to cover various aspects like consumption, consumers preference and customers
satisfaction regarding Nestle Products. In collecting requisite data and information regarding the
topic selected, we went to the students of VIT University and collected the data.
Survey design:

The study is a cross sectional study because the data were collected at a single point of
time. For the purpose of present study a related sample of population was selected on the basis of
convenience.

Sample Size and Design:

A sample of 63 people was taken on convenience sampling method. The actual

consumers were contacted on the basis of random sampling.

Research Period:

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 Research work is only carried for 2 or 3 weeks.

Research Instrument:

This work is carried out through self-administered questionnaires.

Data Collection:

The data, which is collected for the purpose of study, is divided into 2 bases:

Primary Source: The primary data comprises information survey of Consumer

behavior towards Nestle Products. The data has been collected directly from
respondent with the help of structured questionnaires.

Secondary Source: To study the need of this project work secondary data have been
collected. For secondary data journal articles, magazines, news articles, textbooks and
websites have been referred to.

Data Analysis:

The data is analyzed on the basis of suitable tables by using mathematical techniques.
The technique that I have used is bar technique. We used SPSS software to analyze the primary
data collected.

1.7 Limitations of the study

In attempt to make this project authentic and reliable, every possible aspect of the topic was
kept in mind. Nevertheless, despite of fact constraints were at play during the formulation of this
project. The main limitations are as follows:
Due to limitation of time only few people were selected for the study. So the sample of
consumers was not enough to generalize the findings of the study.
The main source of data for the study was primary data with the help of self-administered
questionnaires. Hence, the chances of unbiased information are less.
People were hesitant to disclose the true facts.

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 The chance of biased response cant be eliminated though all necessary steps were taken
to avoid the same.

CHAPTER II
REVIEW OF LITERATURE
2.1 Introduction
Review of related literature literally means reviewing already acquired knowledge in a
detailed and completely connected way. It is a summary in which, various truths intensively
studied are seen as an organized whole, accurately related and well unified. Researcher takes the
advantage of the knowledge which has accumulated in the past as a result of constant human
endeavor. Research can never be undertaken in isolation of the work that has already been done
on the problems which are directly or indirectly related to a study proposed by a researcher. One
of the important steps in the planning of any research study is a careful review of the research
journals, books, dissertations, these and other sources of information on the problem to be
investigated. It enables the researcher to define the limits of his field and to avoid unfruitful and
useless problem areas. The knowledge of related literature makes the researcher up-to-date on
the work which others have done and help him to avoid unintentional duplication of well-
established findings. The review of related literature gives the researcher an understanding of the
research methodology, tools and instruments, which have proved to be useful and promising in
the previous studies and provides an insight into the statistical methods through which validity of
results is to be established. In the words of Best, A familiarity with the literature in any problem
area helps the students to discover what is already known, what others have attempted to find
out, what methods have been promising and disappointing and what problems remain to be
solved.
In view of the importance of the review of related research, an attempt was made to analyze the
related researches on A STUDY ON CONSUMER BEHAVIOUR TOWARDS NESTLE
PRODUCTS WITH REFERENCE TO VIT UNIVERSITY, VELLORE. These studies have
been systematically presented in the following section.

Enis (1974), stated consumer behavior as a process, which through inputs and their use though
process and actions leads to satisfaction of needs and wants. Consumer buying behavior has

13
numerous factors as a part of it which are believed to have some level of effect on the purchasing
decisions of the customers.
Sproles (1985), developed a 50-item instrument to profile the decision making styles of
consumers. Using data collected from 111 undergraduate women in two classes at the University
of Arizona and employing a factor analysis technique, Sproles (1985) found six consumer
decision-making style traits He named and described these traits: (1) Perfectionism. (2) Value
Conscious, (3) Brand Consciousness, (4) Novelty-Fad-Fashion Consciousness, (5) Shopping
Avoider-Time Saver-Satisfier, (6) Confused, Support-Seeking Decision Maker.
Sproles and Kendall (1986), stated as a consumer decision making (CDM) style as a mental
orientation characterizing a consumers approach to choices. Broadly speaking, there are three
types of approaches in studying consumer decision-making styles: the psychographic / lifestyle
approach, which identifies hundreds of characteristics related to consumer behavior; the
consumer typology approach, which classifies consumers into several types; and the consumer
characteristics approach, which focuses on different cognitive dimensions of consumers
decision-making in the extent consumer behavior literature, most studies assume that the
shopping approaches of all consumers with certain decision making traits combine to form a
consumers decision-making style. Academicians and researchers have long been interested in
identifying these underlying decision styles of shoppers. For example, consumers are identified
as economic shoppers, personalizing shoppers, ethical shoppers, apathetic shoppers, store loyal
shoppers, recreational shoppers, convenience shoppers, price-oriented shoppers, brand-loyal
shoppers, name-conscious shoppers, problem-solving shoppers, fashion shoppers, brand
conscious shoppers and impulse shoppers. Using the consumer characteristics approach,
Sproles and Kendall (1986), developed a comprehensive instrument called Consumer Style
Inventory (CSI) to measure consumer decision making styles. This instrument measures eight
mental characteristics of consumers decision making: perfectionism, brand consciousness,
novelty-fashion consciousness, recreational, price-value consciousness, impulsiveness, confused
by over choice, and brand loyal/ habitual.
Lancaster and et al (2002), stated as efforts of better understanding the consumers buying
behavior, companies also engage in advertising and promotion activities to influence the
consumers purchasing decision. However, when they are engaging in such types of activities,
they need to consider other external factors such as the overall economic conditions of the

14
country, politics, technology and ethnic culture all of which are beyond the control of both the
company and consumer
Pauline & Geistfeld (2003), Consumer perceptions of retail store attributes for a set of particular
stores were examined to determine their effect on store preference. Respondents rated 13 stores.
Four variables were found to affect store preference using forward stepwise logistic regression:
type of clothing desired in stock, outside store appearance, shopping hours, and advertising.
Significance of the effect of store attributes on store preference varied by store type. In addition,
associations between customer perception of store attributes, education and age were observed.
Implications for researchers and practitioners are discussed.
Kotler and et al (2005), stated that it is essential to mention that despite the great efforts to learn
and understand the buying behavior of consumers, it is very difficult to identify the exact reasons
why a consumer purchases and prefers one product or service over another one. This is because
consumers sometimes make purchasing decisions based on their emotional beliefs which they
even themselves are not well aware of.
Blackwell et al (2006), stated that consumer buying behavior is itself is a complex, dynamic
issue which cannot be defined easily and commonly. Therefore, the concept of consumer buying
behavior has been defined in different ways by different researchers
Egen (2007), stated that, better awareness of consumer buying behavior is a positive contribution
to the countrys economic state. The author further argues that the quality of goods and products
are exceptionally good in countries where buying behavior of consumers is well understood. This
in turn increased the competitiveness of the products and services in international market
increasing the export potential of the country. Meanwhile, high quality of domestic products and
services lead to sophisticated domestic customers base
Karthik.A.S. (2008), Customer perception will be a primary force in determining how this
transition will evolve. Getting closer to the customer in todays highly competitive landscape is
essential for the entire industry and is no longer just a retail issue. It requires all organizations
across the supply chain to work as a single enterprise, sensing and responding rapidly to
consumer demand in a co-ordinated manner.
Awng Di (June 2008), This study compares consumers perceptions between retail stores:
superstores and family-run stores in Bangkok. The superstores which were used to compare with
family-run stores in this study are Big C, Carrefour and Tesco-Lotus. The study was quantitative

15
research using survey questionnaires to collect data from 400 shoppers in Bangkok areas.
Quantitative statistics were used to analyze data variables and test hypotheses. The results from
this study found that the competition between superstores and family-run stores resulted in more
benefits to customers. The customers were aware that many family-run stores closed down
because of superstores, but they preferred free and fair competition. The results also found that
the customers wanted the Thai government to impose restrictions on superstore expansion and
support family-run stores, though they still agreed that superstores are essential for consumers
and family-run stores are not well allocated for consumers in Bangkok. Consumers were satisfied
more with marketing factors including product quality, product variety, and stable prices of
superstores. They also preferred the store environment of superstores than with those of family-
run stores. Consumers also thought that superstores benefited the economy and society than
family-run stores.
Reeti and et all( 2009) investigated about the customers perceptions about banking services in
an emerging economy for which the various determinants affecting the customer perception as
well as attitude towards banking services were predicted through study that was conducted on the
respondents taken from Northern part of India .Major findings depicted that customer
perceptions are influenced by the usage of e-banking services by the kind of account they hold,
age , profession , attached high degree of usefulness to the balance enquiry service among e-
banking services .It was also found that security and truth are the most important factors in
affecting their satisfaction levels and slow transaction problem speed was the most frequent
problem faced by majority of Customers.
Kumar (2010), states that From marketers point of view issues specific aspects of consumer
behavior that need to be studied include the reasons behind consumers making purchases,
specific factors influencing the patterns of consumer purchases, analysis of changing factors
within the society and others.
M.Ramakrishnan (2010), The study aims to analyze the Consumer Perception towards Private
Label Brands on Big Bazaar, Coimbatore. The objective of the study is to understand the
possibility of success when retailers introduce private brands. The research is aimed to explore if
buying choices are made based on brand loyalty and to analyze whether customers actively seek
for new brands or strict to the old brands.

16
From this study, one can come to the conclusion that private labels are able to position
themselves significantly in the mind of customers and are gaining acceptance. Growth in specific
private label segments like food and apparel segments are growing at a faster rate. While, the
future of private labels is dependent on the retailers ability to overcome key challenges such as
adaptive supply chain practices, quality infrastructure, accelerated growth in new categories,
blurring dividing lines between private label and national brands. From the study, it was found
that good quality, price, trustworthy, large variety are the most influencing factor which drive the
customer to buy the private label brand. Therefore, these are the factors which should be
considered while coming with the future private brand. This in return it will help the retail stores
to increase sales.
Kotler and Keller (2011), state that consumer buying behavior is the study of the ways of
buying and disposing of goods, services, ideas or experiences by the individuals, groups and
organizations in order to satisfy their needs and wants. They highlight the importance of
understanding consumer buying behavior and the ways how the customers choose their products
and services can be extremely important for manufacturers as well as service providers as this
provides them with competitive advantage over its competitors in several aspects. For example,
they may use the knowledge obtained through studying the consumer buying behavior to set their
strategies towards offering the right products and services to the right audience of customers
reflecting their needs and wants effectively.
Nissar Mohamed. S (2012), states that The purchasing power of the consumer has also
increased; giving rise to his wants and needs. It is over here that big retail chains such as Big
Bazaar come into picture satisfying various consumer needs under one roof. From the survey
conducted on the customers' perception towards the marketing mix of Big Bazaar the following
can be concluded regarding the P's: The customers are highly satisfied with the variety and of
products, but at the same time they are not very happy with the quality and availability of
branded products. Big Bazaar has definitely succeeded in keeping up its image of a value for
money store, as its price has been rated positively. The promotions are not hitting the target.
Although Big Bazaar has been promoting their offers, most of the customers are introduced to
these only at the store. Customers are delighted with the location of Big Bazaar as it is located in
the most intensely populated area of Chennai. Big Bazaar has been successful in keeping up its
promise of providing value for money goods, but today customers look beyond price, such as

17
quality, employee behavior, store atmosphere etc. Big Bazaar has scope for improvement in these
yields.
William & Prabakar (2012), concluded that The customer perception of retail service quality
is an important segment to the emerging and the existing retailers in the market as the study
reveals that perception of service quality influenced by the various nature with various customers
even some of the general factors like Personal interaction, physical aspects are the dimensions on
of the customer perception remains constant and common to all the customer on a majority basis
so the retail outlets have to frame their own strategies.

18
 CHAPTER III
DATA ANALYSIS AND INTEPRETATION
3.1 Introduction - To complete this study properly, it is necessary to analyze the data collected
in order to test the hypothesis and answer the research questions. As already indicated in the
preceding chapter, data is interpreted in a descriptive form. This chapter comprises the analysis,
presentation and Interpretation of the findings resulting from this study. The analysis and
Interpretation of data is carried out in two phases. The first part, which is based on the results of
the questionnaire, deals with a quantitative analysis of data.
3.2 Age of the respondent The length of time during which a being or thing has existed; length
or life of the existence to the time spoken of or referred to.
Table 3.2
Age of the Respondents

Age Frequency Percentage

17-18 33 52.4
18-19 27 42.9
19-20 3 4.8
Total 63 100.0
Source: Primary Data
From the above chart and graph we can observe that out of 63 respondents
33(52.4%)respondents are under the age group of 17-18 years. 27(42.9%) respondents are under
the age group of 18-19. 3(4.8) respondents are under the age group of 19-20 years. Hence it is
concluded that, majority of respondents are of age 17-18.
Figure 3.2
100
age of the
80
respondents
60 No.of
40 respondents
age of the
20
respondents
0 Percent
17-18 18-19 19-20 Total

19
3.3 Gender of the respondent - The state of being male or female (typically used with reference
to social and cultural differences rather than biological ones).
Table -3.3
Gender of the respondents

Gender Frequency Percentage

Male 36 57.1
Female 27 42.9
Total 63 100.0
Source: Primary Data
From the above table and chart we can see that out of whole 63 respondents 36(57.1%)
respondents are male gender. 27(42.9%) respondents belong to female gender. Thus the majority
of respondents are male.
Figure 3.3

100
90
80
70
gender of the
60 respondents No.of
50 respondents
40 gender of the
30 respondents Percent
20
10
0
Male Female Total

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3.4 Consumption of nestle product Consumption is a major concept in economics and is also
studied by man other social sciences. Consumption in economics is use of goods and services by
households. Consumption is distinct from consumption expenditure.
Table 3.4
Consumption of nestle product
Consumptio
n Frequency Percentage
Yes 59 93.7
No 4 6.3
Total 63 100.0
Source- Primary data
From the table and chart it is clearly understood that out of 63 respondents 59(93.7%)
respondents consume nestle products. 4(6.3%) respondents doesnt consume nestle products.
Hence by this we can conclude that majority of people prefer nestle products.
Figure 3.4

100
90
80
70 consumption of
60 nestle product No.of
50 respondents
40 consumption of
30 nestle product
Percent
20
10
0
Yes No Total

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3.5 Buying of nestle product The activity of acquiring goods or services to accomplish the
satisfaction of the consumer.
Table 3.5
How many time do you buy nestle product

No. of times Frequency Percentage

Frequently 25 39.7
Rare 33 52.4
Very Rare 5 7.9
Total 63 100.0
Source Primary data
From the above graph and table out of 63 respondents 25(39.7%) of the respondents
consume nestle products frequently. 33(52.4%) of the respondents consume nestle products
rarely. 5(7.9%) of the respondents consume nestle products very rarely. So, by the above thing
we can conclude that majority of people consume nestle products rarely.
Figure 3.5

100
90
80
70 how many time do
you buy nestle
60
product No.of
50 respondents
40 how many time do
30 you buy nestle
20 product Percent
10
0
Frequently Rare Very Rare Total

3.6 Preference of nestle products A preference is a technical term in psychology, economics

and philosophy usually used in choosing between alternatives.

22
 Table 3.6
Which product of nestle you prefer more
Preference Frequency Percentage
Milk Products 11 17.5
Chocolates 38 60.3
Maggie 12 19.0
Beverages 2 3.2
Total 63 100.0
Source Primary data
From the above chart and table out of 63 respondents 11(17.5%) of the respondents prefer
dairy products of nestle. 38(60.3%) respondents prefer nestle chocolates. 12(19.0%) respondents
prefer Maggie which is a nestle product .2(3.2%) of the respondents prefer beverages of nestle.
By the above analysis we can conclude that majority of people prefer nestle chocolates and
minority of people prefer nestle beverages.
Figure 3.6

100
90
80
70
60 which product of
50 nestle you prefer
40 more No.of
30 respondents
20 which product of
10 nestle you prefer
0 more Percent

3.7 Loyalty towards nestle products Giving or showing firm and constant support or
allegiance to anything.
Table 3.7

23
 Are you loyal to nestle brand

Loyalty Frequency Percentage

Yes 38 60.3
No 25 39.7
Total 63 100.0
Source Primary data
From the above analysis out of 63 respondents 38(60.3%) of respondents are loyal to the
brand nestle. 25(39.7%) of the respondents are not loyal to the brand nestle. Thus majority of the
respondents are loyal to nestle brand.
Figure 3.7

100
90
80
70
are you loyal to nestle
60
brand No.of
50 respondents
40 are you loyal to nestle
30 brand Percent

20
10
0
Yes No Total

3.8 How far you think Flavor is important A substance or extract that provides a particular
taste, especially the distinct taste of something ass it is experienced in the mouth.
Table 3.8

24
 How far you think flavor is important

Flavor Frequency Percentage

Very important 35 55.6

Important 26 41.3
Not important 2 3.2
Total 63 100.0
Source Primary data
From the above analysis its clear that out of 63 respondents 35(55.6%) of the
respondents prefer that flavor of the product is very important. 26(41.3%) of the respondents feel
that flavor is just important .2(3.2%) of the respondent feel that flavor of the product is not much
important .thus from the above case we can conclude that majority of the people feel that is much
more important.
Figure 3.8

100
90
80
70
60
50 how far you think
flavour is important
40
No.of respondents
30
20 how far you think
10 flavour is important
0 Percent

3.9 How far you think price is important - Price is the value that is put to a product and is the
result of a complex set of calculations, research and understanding and risk ability.
Table -3.9
How far you think price is important

25
 Price Frequency Percentage
Very important 22 34.9

Important 28 44.4
Not Important 13 20.6

Total 63 100.0
Source Primary data
From above table and chart we can observe that out of 63 respondents 22(34.9%) of the
respondents feel that price of the product is very important .28(44.4%) of the respondents feel
that price not much more important. 13(20.6%) of the respondents feel that price is not at all
important thus we can conclude that majority of the people doesnt give much importance to
price of nestle products.
Figure 3.9

100
90
80
70
60
50 how far you think price
40 is important No.of
30 respondents
20 how far you think price
10 is important Percent
0

3.10 Quality - Quality is something describes as meeting the requirements of the customers. The
term quality assurance describes any systematic process for ensuring quality during the
successive steps in developing a product.
Table 3.10
How far you think quality is important

Quality Frequency Percentage

Very important 53 84.1

26
 Important 9 14.3
Not important 1 1.6

Total 63 100.0
Source Primary data
Inferred to the above table and chart out of 63 respondents 53(84.1%) of the respondents
feel that quality of nestle products is very important. 9(14.3%) of the respondents feel quality is
not much more important. 1(1.6%) of the respondent feel that quality is not at all important.
From the analysis it is understood that majority of the people feel that quality is much more
important as expected.
Figure 3.10

100
90
80
70
60
50 how far you think
quality is important
40
No.of respondents
30
20 how far you think
10 quality is important
0 Percent

3.11 How far you think packaging is important The wrapping material around a consumer
item that serves to contain, identify, describe, protect , display, promote and otherwise make the
product marketable and keep it clean.
Table 3.11
How far you think packaging is important

Packaging Frequency Percentage

Very important 37 58.7

Important 20 31.7

27
 Not important 6 9.5

Total 63 100.0
Source Primary data
Inferred to the above table and chart it can be understood that out of 63 respondents
33(52.4%) of the respondents give much more importance for packaging. 25(39.7%) of the
respondents give little importance to packaging. 5(7.9%) of the respondents doesnt give
importance to packaging. Concluding this analysis we can understand that majority of
respondents give high importance even for packaging.
Figure 3.11

100
90
80
70
60 how far you think
50 packaging is
40 important No.of
30 respondents
20 how far you think
10 packaging is
0 important Percent

3.12 How far you think brand is important- A brand is a product, service , or concept that is
publicly disstinguished from other products, services or concepts so that it can be easily
communicated and usually marketed.
Table 3.12
How far you think brand is important

Brand Frequency Percentage

Very important 31 49.2
Important 29 46.0

28
 Not important 3 4.8

Total 63 100.0
Source Primary data
From the table and chart analysis its clearly seen that out of 60 respondents 37(58.7%) of
them give high importance to brand. 20(31.7%) of the respondents gives little importance to
brand. 6(9.5%) of the respondents doesnt give importance to brand. Hence it is concluded that
majority of the respondents give high importance to brand.
Figure 3.12

100
90
80
70
60
how far you think
50
brand is important
40
No.of respondents
30
20 how far you think
10 brand is important
0 Percent

3.13 Influential factors - the power to change or affect something which causes change changes
without directly forcing them to happen.
Table 3.13
Influential factors to purchase nestle

Influential factors Frequency Percentage

Advertising 27 42.9

Attractive packaging 11 17.5

29
 Brand name 19 30.2

Sales Offers 6 9.5

Total 63 100.0
Source Primary data
Inferred to the table and chart out of 63 respondents for 27(42.9%) of the respondents
advertising has been the influential factor to prefer nestle products. For 11(17.5%) of the
respondents attractive packaging has been the influential factor for preferring nestle products.
For 19(30.2%) of the respondents brand name has been the influential factor for preferring
nestle products. For the remaining 6(9.5%) respondents the offer provided nestle has been the
influential factors for preferring nestle products. Hence it is concluded that majority of the
people get influenced to nestle products because of its advertising .
Figure 3.13
100
90
80
70
60 influential factors to
50 purchase nestle
40
30 No.of respondents
20 influential factors to
10 purchase nestle
0 Percent

3.14 Favorite - A thing that is mostly liked than another.

Table 3.14
Favorite product of nestle
Favorite
product Frequency Percentage
Chocolates 30 47.6

Maggie 19 30.2

30
 Dairy Products 11 17.5

Beverages 3 4.8

Total 63 100.0
Source Primary data
Inferred to above analysis out of 63 respondents 30(47.6%) of the respondents like nestle
chocolates. 19(30.2%) respondents like nestle Maggie. 11(17.5%) of the respondents like dairy
products of nestle. 3(4.8%) of respondents like beverages of nestle products. Hence it is
concluded that majority of the respondents like nestle chocolates and prefer them.

Figure -3.14

100
90
80
70
60
50 favourite product of
40 nestle No.of
30 respondents
20 favourite product of
10 nestle Percent
0

3.15 Substitute - Different goods that at least partly satisfy the same needs of the consumers
and therefore can be used to replace one another.
Table 3.15
Other company product instead of nestle

Substitute Frequency Percentage

Cadbury 40 63.5
Britannia 13 20.6
Hat sun 5 7.9

31
 PepsiCo 5 7.9
Total 63 100.0
Source Primary data
From the above table and chart its clear that out of 63 respondents 40(63.5%) of the
respondents would choose Cadbury if not nestle. 13(20.6%) of the respondents would choose
Britannia if not nestle.5(7.9) of the respondents would choose hatsun products if not nestle.
5(7.9%) of the respondents would choose PepsiCo products if not nestle. So, concluding this
majority of the respondents choose Cadbury if not nestle.
Figure 3.15

100
90
80
70
other company
60
product instead of
50 nestle No.of
40 respondents
30 other company
20 product instead of
10 nestle Percent
0

3.16 Dissatisfaction The state or attitude of not being satisfied and a feeling of displeasure or
disappointment.
Table 3.16
Dissatisfaction with nestle

Dissatisfaction Frequency Percentage

Yes 24 38.1
No 39 61.9
Total 63 100.0
Source Primary data

32
 Inferred to the above analysis its clear that out of 63 respondents 24(38.1%) of the
respondents are dissatisfied with nestle products. 39(61.9%) of the respondents are not
dissatisfied with nestle products. Which shows that majority of the respondents are satisfies with
nestle products.
Figure 3.16

100
90
80
70
dissatisfaction with
60
nestle No.of
50 respondents
40 dissatisfaction with
30 nestle Percent

20
10
0
Yes No Total

CHAPTER IV
SUGGESTIONS AND CONCLUSIONS
4.1 Introduction This chapter shows the summary and conclusion and suggestion of the whole
report.
4.2Suggestions
1. Promotional activities should be concentrated as awareness on nestle.
2. Modification in television advertisement has to be done to make the advertisement more
effective.

33
 3. Attractive offers along with the products can be increased in order to overcome the
competition in the consumer goods market.
4.3 Conclusion
The researcher after conducting a study on the consumer behavior towards the products of Nestle
has come to the conclusion that Nestle has received a pivotal position in the market for their
products. Quality is the main motivating factor for the consumers to buy the products of Nestle.
The introduction of new products in the market, to satisfy all types of consumers is also one of
the important reasons for Nestle to rank top in the consumers market. It is clear from the study
that, to capture a major share in the consumer goods market the manufacturer has to provide
quality goods at reasonable price.
Every person plays multiple roles in their daily life, professional role or social role. Each of these
roles has a certain effect on consumers buying behavior. Each role has a particular status in
society and consumer behavior is considerably depended on the status factor .If the marketers
easily understand the factors that mainly influence in buying decision the sales can be increased
a lot. The study offers an assessment of the symbolic devices that is being shown in an
advertisement adopt to persuade the audience. The visual expression model is supported in that
the study suggests why advertisers use celebrities of different gender and age groups and
expertise areas in commercials for certain products and cultural values. Certain groups of people
are loyal to a particular brand of product

BIBILOGRAPHY
Blackwell, R., Miniard, P. and Engel, J. (2006) Consumer behavior, Mason: Thompson
Egan, J. (2007) Marketing Communications, London: Cengage Learning
Enis, B.M. (1974) Marketing Principles: The Management Process
Gabbott, M. and Hogg, G. (1998). Consumers and services, Chichester: John Wiley & Sons.
Kotler, P. and Keller, K. (2011) Marketing Management(14th edition), London: Pearson
Education
Kumar, P. (2010) Marketing of Hospitality & Tourism Services Tata McGraw-Hill Education

34
Schiffman, L., Hansen H. and Kanuk L. (2007) Consumer Behaviour: A European Outlook,
London: Pearson Education
Solomon, M. (1995) Consumer Behaviour (3rd edition), New Jersey: Prentice Hall
Stallworth, P. (2008) Consumer behavior and marketing strategic, online, pp.9.

APPENDICES
Questionnaire

Consumer behavior towards Nestl products in Vellore

Name: Reg no:

1) Which Age group do you belong to?

35
36
2) Whats your Gender:

37
3) Do you consume Nestl Products?

38
4) How many times do you buy Nestl products?

39
40
5) Which product of Nestl do you prefer the most?

41
42
6) If Nestl Brand is not available for further purchases what will you do?
Postpond your purchases Switch to another brand

Go to another shop to buy Nestl product

43
7) How much importance do you give the following factors when you purchase a Nestl
product?

Very Important Important Not important

Ta
ste

Pri
ce

44
Qu
ali
ty

Qu
ant
ity

45
 Pa
ck
agi
ng

Br
an
d

8) Which of these factors influences your purchase?

46
47
9) How would you rate Nestl compared to its other competitors?

48
49
50
10) Choose the following products of Nestl as your favorite product?

51
52
53
11) Do you think that a Nestl product is a luxury or necessary?
Yes /no

12) Why do you prefer other company products instead of Nestl?

54
55
13) After ban of Maggie did you purchase Nestl products?

56
14) How satisfied are you with the quality of Nestl products? Rate it from 1-5(Least-
Excellent).

57
58
59
15) Due to ban of Maggie what is your impression on overall products of Nestl?

60
16) If not Nestl what other brand will you choose?

61
17) Why do you prefer Nestl products?

18) Have you suggested your friends or relatives to use Nestle products?

62
19) Have you ever been dissatisfied with Nestle products?

63
FEEDBACK:

64