Consumer Attitudes on Edible Oil Brands
Consumer Attitudes on Edible Oil Brands
Prof(Dr.) D. S. Chaubey,
Dean Research & Studies
Uttaranchal University, Dehradun.
ABSTRACT
Opening of Indian economy has enhanced the brand consciousness of customers. Today
different brands of edible oil are available in the market. Consumers have specific
preferences & choice & they evaluate them on the basis of aspects like price, quality,
health & packaging etc. The present study undertaken to examine the consumer attitude
and perception toward brands of edible oil. Researcher has tried to establish
relationship between product quality with consumer satisfaction and brand loyalty.
Data was collected from 323 customers in Dehradun city to analyse the demographic
profile of customer and its relationship with brand preferences. It was found that
quality is the main consideration in selecting the brand of edible oil. It is also seen that
quality leads to satisfaction and further enhances the brand loyalty.
INTRODUCTION
Edible oils constitute an important component of food expenditure in Indian
households. Historically, India has been a major importer of edible oils with almost 30-
40% of its requirements being imported till 1980s. In 1986, the Government of India
established the Technology Mission on Oilseeds and Pulses (TMOP) in order to enhance
the production of oilseeds in the country. The TMOP launched special initiatives on
several critical fronts such as improvement of oilseed production and processing
technology, additional support to oilseed farmers and processors besides enhanced
customs duty on the import of edible oils. Consequently, there was a significant increase
in oilseeds area, production, and yields until the late-1990s.
Today India is one of the largest producers of oilseeds in the world and this sector
occupies an important position in the agricultural economy. The oilseeds area and
output is concentrated in Central and southern parts of India, mainly in Madhya
Pradesh, Gujarat, Rajasthan, Andhra Pradesh and Karnataka. Edible Oil is purified fat of
plant or animal origin, which is liquid at room temperature.
Awareness, knowledge & exposure among consumer towards edible oil are also
increasing, because of the level of education, urbanization and also the vast
development in communication facilities. Packaging has become appropriate selling
proposition now days, although edible oil industry is very competitive and consumers
are numerously price conscious but still packaging make an impact on the consumer
brand preference.
In edible oil industry, brand preference are more sensitive as compare to any other
related industry. Health consciousness among consumer are increasing day by day.
Because of these reasons, industry is becoming health sensitive and quality conscious.
The edible oil industry is changing because today’s eating habits are shifting and
creating new markets. While vegetable oils are becoming increasingly valuable in
biofuels production, high energy prices and low margins put pressure on balance sheets
in the edible oil industry.
An important characteristic of the Indian edible oil consumption pattern is the variation
in preferences across regions, driven by taste and availability. The edible oil industry in
India is characterized by intense competition and fragmentation ,with the presence of a
large number of units attributable to low entry barriers such as low capital and low
technical requirements of the business and a liberal policy regime (SSI reservation for
traditional oilseeds and sales tax incentives by various state governments). Companies
are trying to build up the brand using these elements into their marketing program. The
growing health consciousness among the target market forces consumers not to
compromise on its preferred brand.
LITERATURE REVIEW
Dr. J.H.Vyas, Imran N. Siddiqu ,Jay K. Dewangan (April 2013) study suggests that
when the consumer purchase cooking oil higher importance is given to safety aspects,
and the brand image of the cooking oil than the sales promotional schemes offered by
the companies. Cooking oil marketers could take maximum efforts in designing the
advertisements in such a way that the advertisements provide reliable and maximum
information about the nutrition and health aspects, price of the oil.
Dhinesh babu & Venkateshwaran stated that the owners of the edible oil units should
be trained to get more marketing knowledge to market their products. They should
think global and act local. It implies that their product should be highly qualitative and
also suitable to the local consumers. The attractive packaging plays an important role in
the marketing of edible oils. All types of manufacturers should realize this fact and try to
sell their products in attractive packets. It is not only attractive but also is reachable to
all customers’ segments.
R Prerna (2013) in their study says that Quality is always important for any
production. But it is more important in case of edible oil for reason that it is more
related to health. Consumers analyze the price, quality, packaging aspects etc. before
they buy the product and hence, it is up to the different brands of sunflower and
groundnut oil manufacturers to concentrate on those aspects and workout better
strategy to attract more consumers for their brands.
Syed Akif Hasan and Muhammad Zeeshan Khan stated that packaging characteristics
influences the consumer brand preference in edible oil. whereas packaging
characteristics has eight different dimensions i.e. various sizes of Package, different
shapes Package, safety, shelf life, convenience of storage, convenience of use, extra use
of package and package attractiveness. Study is also helpful to conclude the factors
which are responsible for the increment of market share in edible oil industry by
changing or modifying the packaging of product in competitive market.
Butz and Goodstein, (2006) found that demographic variables are the most popular
bases for segments the customer groups, One reason is that consumer needs, wants,
preferences and usage rates are often highly associated with demographic variables.
Another is that demographic variables are easier to measure (Kotler, Philip, and Gary
Armstrong, 2006).
N. Rajaveni & Dr. M. Ramasamy study suggests that strongly packaged brand should
offer protection and carve out for a point of difference that can protect the brand
against competitor activity through trade marking. It is also important to remember
that the world is full of cultural and linguistic difference. What works in one market
doesn’t always work in another. The bottom line for business is that packaging design
will almost always have an effect on a company’s profit and loss.
To analyse the demographic profile of customer and its relationship with brand
preferences.
To identify the factors influencing customers in building their preferences from
normal product to branded products.
To identify the factors of brand switching.
To draw conclusions and suggestions on the basis of study.
RESEARCH METHODOLOGY
To complete this study primary as well as secondary source of information is used. To
study the consumer attitude & brand preferences of edible oils, primary data is
collected by using a detailed structured questionnaire which was administered to a
sample of 323 selected on the basis of convenience sampling method. The study has
been carried out in Dehradun city. The secondary data is collected from published
thesis, reputed journals, magazines and related websites. The data so collected is
scrutinized, tabulated, analyzed and finally used for the study purpose. For the
calculation and analysis of data statistical tools9Mean, SD, ANOVA and other statistical
techniques are used.
Assumption of Hypothesis
H0: consumers attitude and perception toward edible oil does not differs
significantly across the level of income and education .
H1: consumers attitude and perception toward edible oil does not differs
significantly across the level of income and education .
Table.1
Demographic Characteristics of Respondents
Category Count Percentage
Gender Male 214 66.3
Female 109 33.7
Marital Status Married 183 56.7
Unmarried 140 43.3
Less than 20 years 5 1.5
From 21-30 Years 190 58.8
Age From 31-40 Years 82 25.4
Above 40 Years 46 14.2
Family Size Up to 3 Members 201 62.2
4-5 members 64 19.8
6-8 members 22 6.8
9-10 members 1 0.3
More than10 members 35 10.8
Matric & below 1 .3
Education Level Under Graduate 74 22.9
Graduate 25 7.7
Post Graduate 153 47.4
Professional qualification, if any 70 21.7
Income Level Below 15000 PM 91 28.2
15,000 to 30,000 PM 223 69.0
30,000 to 50,000 PM 8 2.5
80,000 and above PM 1 .3
Total 323 100
The information presented in the above table no 1 shows that out of 323 respondents,
66% are males and only 34% are females which implies that males where more than the
females in the gender category of respondents. Majority of the respondents (57% ) are
married and only 43% are unmarried which reveals that majority of respondents are
married. Age wise classification is considered to be an attribute of demographic profile,
the analysis presented in the above table reveals that sample is dominated by the young
category of respondent ranging in the age group of 21-30 years as it contributes 58.8%
in the sample while least number of respondents are less than 20 years of age. Almost
62% of the people having a small family of upto 3 member as no of family members
describe the consumption pattern of households. Majority that is 62% of respondents
are post graduates. With regards to employment status majority that is 69% have
income between 15,000-30,000.
Today there is stiff competition among the edible oil industries. Companies are trying
their best to build up the brand for differentiating the product. Brand Preferences
represents which brands are preferred under assumptions of equality in price and
availability. As seen in table 2 out of total 323 respondents almost 51.7% people prefer
Fortune,30.7% people prefer Suffola oil & only 10.8% people prefer Dalda ,maximum
percentage of people prefer Fortune brand.
Table.3
Source f Information
Sl NO Description Number of Percentage
Respondents
a Family 113 35.0
b Friend 77 23.8
c Retailers 1 .3
d Advertisement 132 40.9
Total 323 100.0
Media plays a major role in a consumer’s buying decision-making process. There are
many ways for customer to get information about various brand of edible oil.
Advertising is used through various media to generate brand awareness within
consumers. They can be aired as radio ads, television commercials, internet etc . As per
the above table 3 out of 323 respondents maximum percentage that is 40% of
respondents gets the information about the brand through Advertisement, 35% knows
about the brand through family members,23% gets information from friends & only
0.3% gets information from retailers.
Table.4
Monthly Spending Pattern on Edible Oil
Sl NO Description Number of Percentage
Respondents
a Less than Rs. 500 97 30.0
b From 500 to 1000 198 61.3
c From Rs. 1000 to 1500 5 1.5
d Rs 1500 & above 23 7.1
Total 323 100.0
The above table shows that 61.3% of respondents spend 500 to 1000 rupee on monthly
basis on edible oil, 30% spend less that 500 rupee per month,7.1% spend 1500 and
above & only 1.5 % people spend Rs 1000 -1500 on edible oil.
The information presented in the table 5 reveils that maximum percentage ( 61.3% ) of
respondents purchase edible oil 2-3 times in a month. Buying oil is not a daily affair,
hence the production and stocking needs to be aligned with this behaviour.
Table.6 Duration of using Single brand of edible oil
Sl NO Description Number of Percentage
Respondents
As seen in table.8, 71.2% of respondents purchase edible oil from local stores, whereas
26.3% prefer supermarkets to make their purchases & only 2.5% make their purchases
from shopping malls.
Factor Analysis:
Factor analysis is a very useful method for reducing data complexity by reducing the
number of variables being studied. It is used to identify the factors that influence the
perception and attitude of respondents towards edible oil. To determine the
appropriateness of applying factor analysis, the KMO and Bartlett’s test measures were
computed and the results are presented in the below table. Higher values between (0.5
and 1.0) indicate the sample size taken for the study of factor analysis is adequate. As
the result in above table indicate sampling adequacy value to be 0.539, the sample size
in factor analysis is appropriate. The Kaiser-Meyer-Olkin (KMO)measure of sampling
adequacy (KMO=0.54)
From the below table the loading of factors can be observed. The loading of factors can be
positive or negative. The higher the loading the more important is the factor. . Only factors
with Eigen value greater than 1.0 are retained. Factors with variance less than 1.0 are no
better than single variable. The exploratory factor analysis extracted 5 factors with Eigen
value greater than 1, which accounted for 79.1 per cent of variance in the data. The result
are presented in the below mentioned table. It provides an insight about how many variables
can be clubbed together to make a single factor. Referring to the Table, Factor 1 having
variance 24.325% represents the element Healthy oil , taste & satisfaction level of consumer
towards the brand of edible oil is considered to be an important factor that influences the
perception and attitude of consumers,even if the prices goes high consumer become loyal
towards that brand. Factor 2 with a variance of 20.47% has the statement that Celebrity
endorsement, media influence the consumers towards their brand of edible oils. Sometimes,
consumers attitude and perception are developed towards brand if it is endorsed by their
favourite celebrity. The statements that load into Factor 3, having variance 15.291%
represents the pricing of the brand & the various offers that company provides having an
influence on consumer. Nature of consumption ia also considered to be an important factor.
Factor 4 having variance 12.00% consisted of product design, its packaging, labeling, their
composition also the availability of the product to the consumer. Salesman’s, shopkeepers
suggestions are also considered by the consumer while making purchases. Factor 5 with a
variance of 7.019 comprises that Quality is considered to be important while selecting brand
of edible oil.
Component
Prod Cele Pricin Prod High
uct brity g, uct consu
attri & offers desig mptio
bute med & n, n&
ia nature avail produ
influ of abilit ct
ence consu y& qualit
Taste of the brand of edible oil influence me most in selecting a .833
particular brand of edible oil
My health condition compel me to use branded edible oil .820
I prefer branded oil even if prices goes high .780
Celebrity endorsement influence me most in favour of branded .879
edible oil
Media influence me most in favour of particular brand of edible .878
oil
Price of the product influence me most in favour of particular .868
brand of edible oil
I prefer branded oil only when there is any offers .758
Nature of consumption affect me in particular brand of edible oil .727
I give due consideration to availability of the product while .734
selecting a particular brand of edible oil
Salesman and shopkeeper suggestions is important for me in -.382 .712
brand selection of edible oil
Effect of advertising influence me most in selecting a particular .684
brand of edible oil
Packaging of the product attract me in favour of branded oil .671
Information of product ingrediant influence me in brand selection .515
I give due consideration on quality of the product while selecting -.820
a particular brand of edible oil
I prefer general edible oil,as my family consumption of edible oil .601
is very high
Extraction Method: Principal Component Analysis.
a.Rotation
RotationMethod: Varimax
converged with Kaiser Normalization.
in 7 iterations.
Table 13 Mean of All Five Factor Across the Level of Income of the Respondents
Income Product Celebrity & Pricing, Product High
attribute media offers & design, consumption &
influence nature of availability product quality
consumptio &
n shopkeepers
influence
Below 15000 4.0769 2.2363 2.5092 3.4945 3.8462
15,000 to 30,000 3.5889 2.9126 3.2422 3.0807 3.6682
30,000 to 50,000 3.4167 1.9375 2.7500 3.2000 3.1875
80,000 and above 4.0000 1.5000 3.0000 2.6000 3.0000
Total 3.7234 2.6935 3.0227 3.1988 3.7043
Analysis:
As is the evident from the mean rating of various factors of consumer perception and
attitude From the above table it indicates that the mean of all five factors varies among
different income group.F1 ( Product attribute & satisfaction level) scored highest mean
among all income group of respondents.
Between
16.234 3 5.411 11.427 .000
F1 (Product attribute & Groups
Analysis:
The value F is a ratio of two means squares. The numerator is the treatment square; the
denominator is the experiment error means. Where F= variance of the groups/mean of
the within a group. According to the ANOVA test, factors f1 has a ratio of mean 11.43,
factors f2 has 16.67, factor f3 has 23.47, factors f4 has 8.17 and factor f5 have 1.094
respectively. On the basis of ANOVA data analysis factor f3 that is pricing,offers & nature
of consumption have a huge ratio of mean between groups and within groups so there is
the maximum gap between them. And factor f5 that is product quality & high
consumption has less ratio of mean (1.094) between groups and within groups so there
are little difference and gap between them
According to ANOVA test, factors F1,F2,F3,F4 calculated value is more than the
table value ,hence null hypothesis is rejected.
In factor F5(Product Quality & high consumption) calculated value is less than
the table value. Here, in this factor null hypothesis is accepted.
Analysis:
As is the evident from the mean rating of various factors of consumer perception and attitude
From the above table it indicates that the mean of all five factors varies among different
educational qualification of respondents.F1 ( Product attribute & satisfaction level) scored
highest mean among all different educational level of respondents.
Table 16 One Way ANOVA With The Level of Education
Sum of df Mean Square F Sig.
Squares
Analysis:
The above table shows the ANOVA results, which indicates that the 5% level of
significance, with the significance value of .000,it is clear that there is a significant
relationship between educational qualification & the factors that consumer consider
while making purchases of edible oil. All the factors in the above mentioned table having
value greater the 1.0.
CONCLUSION
In the present scenario, consumers do not accept any product which doesn’t give them
complete satisfaction, that is the reason why so many brands are successful & failure in
the consumer market. Quality is considered to be an important factor in case of edible
oil, because it is more related with health. Nowadays people are very much health
conscious on the basis of various observations made in the study, the consumers feel
that edible oil is necessary for day-to-day life. Hence the manufacturers of edible oil
follow the concept of being hygienic and healthy oil to attract the consumers. If the
consumer is satisfied with the brand it leads to positive perception, loyalty towards
brand, positive word of mouth & leads to long term relationship with the brand of
edible oil. Consumers have specific preferences towards brands like pricing, taste,
packaging, offers, product design, advertisements etc.
BIBLOGRAPHY/ REFERENCES
Dr. J.H.Vyas, Imran N. Siddiqu ,Jay K. Dewangan(April 2013) A study of Edible oil
consumption in Raipur city “IRACST – International Journal of Commerce, Business and
Management ISSN: 2319–2828 Vol. 2, No.2, April 2013
R Prerna (2013), An Empirical Study on Brand Preference Towards Edible oil in Rural
Areas with Special Reference to Coimbatore District, Volume : 3 | Issue : 3 | March 2013 |
ISSN - 2249-555X
Syed Akif Hasan and Muhammad Zeeshan Khan, The Impact of Packaging Characteristics
on Consumer Brand Preference, South Asian Journal of Management Sciences Vol. 3, No.
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Butz, E.H. & Goodstein, D.L. (2006).‘Measuring Customer Value: Gaining the Strategic
Advantage’, Organizational Dynamics, Vol.24, No.3, p63.
N. Rajaveni & Dr. M. Ramasamy “A study on packaging with special reference to edible
oil through consumers in Chennai.” International Journal of Management (IJM), ISSN 097
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http://icra.in/Files/ticker/Indian_Edible_Oils-note11072011.pdf, ICRA Rating Services
Indian Edible Oils Industry : Key Trends and Credit Implications