Consumer Preference and Spending Pattern in Indian Fast Food industry

Transcription

1 Intrnational Journal of Scintific and Rsarch Publications, Volum 4, Issu 2, Fbruary Consumr Prfrnc and Spnding Pattrn in Indian Fast industry Y Prabhavathi, N T Krishna Kishor, M. Ramsh Kumar Abstract- Fast food industry is on of th world s fastst growing sctors in food industry. Howvr, ovr a priod of tim, with a growth in th numbr of nuclar familis, conomic growth and incrasing pr capita incom as wll as globalization, fast food cultur gaind prominnc in India. Th study rvals that. Th avrag visits mad by th sampl rspondnts was thr tims in a month and that young consumr lifstyl trnd consists of tast, convninc and sking altrnat food itms which formd th major rasons for consuming fast food. Analysis on rasons bhind ating fast food by th sampl rspondnts rvald that tast (56 pr cnt) is major rason to consum fast food followd by convninc (15 pr cnt) and altrnat to hom food (11 pr cnt).thy also xprssd that rlaxation and widr varity of mnu wr th othr rasons to consum fast food. Indx Trms- Fast food industry, spnding pattrn, Consumr prfrnc I. INTRODUCTION Fast food industry is on of th world s fastst growing sctors in food industry. Fast food is th food itm that can b prpard and srvd vry quickly (Wbstr Dictionary, 1951). Encyclopdia Wikipdia dfins fast food as food sold in a rstaurant or stor with prhatd or prcookd ingrdints and srvd to th customr in a packagd form for tak-out/tak-away. Bcaus of commrcial mphasis on spd, uniformity and low cost, fast food products ar oftn mad with ingrdints formulatd to achiv a crtain flavour or consistncy and to prsrv frshnss. Fast industry in India Th mrgnc of th fast food industry has, transformd urban food cultur in India to som xtnt. In India, fast food cultur mrgd aftr indpndnc. Eating at hom usd to b a significant aspct of Indian cultur. Howvr, ovr a priod of tim, with a growth in th numbr of nuclar familis, conomic growth and incrasing pr capita incom as wll as globalization, fast food cultur gaind prominnc. Similarly, childrn also rsortd to fast food du to thir xposur to global urban cultur and wstrn cuisin which acclratd thir dsir for chap and dlicious fast food. Morovr, fast food costs lss than traditional mals commncing with apptizr and concluding with dssrt. With th libralization of th conomy in 1992, nw multinational fast food giants targtd India as a hug potntial markt with thir outlts. Burgr King, Pizza Hut, Domino s Pizza, McDonald s and KFC outlts ar functioning in shopping malls and othr public aras. Changing consumr bhaviour and favourabl dmographics ld India to witnss a trmndous growth in fast food rstaurant industry (Shankr, 2010). Objctivs of th Study Th ovrall objctiv of th study is to analyz th food consumption lifstyl bhaviour of consumrs sgmnt for dvloping nw markting stratgis in fast food sctor. Th spcific objctivs of th study ar: 1. To analyz th consumr`s spnding bhaviour on fast food consumption and thir prfrnc on fast food mnu and fast food rstaurants, 2. To analyz th consumr`s consumption xpnditur towards fast food with rspct to gndr, II. METHODOLOGY Th study was conductd in 2 major citis in India Hydrabad and Coimbator by slcting randomly 100 rspondnts who stp in at major fast food rstaurants. A qustionnair for th sam has bn prpard for this purpos. Statistical mthods lik Prcntags, factor analysis, t tst, multifunction rgrssion function ar usd. III. FINDINGS AND DISCUSSIONS Th information collctd from 100 sampl rspondnts in th study ara of Coimbator city wr tabulatd, analyzd and th findings of th study ar prsntd undr th following hadings. 1. Spnding Bhaviour and Consumr`s Prfrnc on Fast 2. Consumr`s Prfrnc on Fast Rstaurants 3. Analysis of Consumption Expnditur on Fast 4. Spnding Bhaviour and Consumr`s Prfrnc on Fast Undrstanding young consumr s bhaviour on fast food hlps th markting firm to know thir intrsts towards fast food as part of lifstyl analysis. To analyz th sampl rspondnts bhaviour on fast food in trms of frquncy of consuming fast food, timing of visits, rasons for consumption, consumption xpnditur on fast food, tc., wr analyzd and rsults ar prsntd in this sction Frquncy of ating of Fast Th frquncy of consumption of fast food by th sampl rspondnts in fast food chains wr analyzd and th rsults ar prsntd in th tabl 1.1. Tabl 1.1 Frquncy of ating of Fast Frquncy of ating Prcnt to 1 Onc in a Wk tims in a Month Onc in a Month 34.00

2 Intrnational Journal of Scintific and Rsarch Publications, Volum 4, Issu 2, Fbruary Occasionally ( onc in 2 months or mor ) Avrag ( of tims) It is obsrvd from th tabl 1.1 that 45 pr cnt of th sampl rspondnts wr consumd fast food thr tims in a month, 34 pr cnt of thm wr consumd fast food for about onc in a month and 13 pr cnt of th rspondnts consumd fast food occasionally i.. onc in two months or mor. It is also obsrvd that only 9 pr cnt of thm consumd fast food, onc in a wk rgularly. Th avrag visits mad by th sampl rspondnts was thr tims in a month. It shows that young consumrs in Coimbator city ar in th bginning stag of fast food cultur as part of thir lifstyl and thr is a lot of potntial for fast food industry to grow in th upcoming yars. Ths findings ar similar to thos of a study don by Styn and Marais (2010) in South Africa showing that 11 pr cnt of th participants at fast food daily, 27.6 pr cnt at two to thr tims a wk and 20.8 pr cnt at fast food at last onc a wk. Only 3.8 pr cnt of th participants had fast food lss than onc pr month Favourit Timing for ating of Fast Th consumr s prfrnc towards favourit tim for ating fast food in an organizd fast food rstaurant was analyzd and th rsults ar prsntd in th tabl 1.2. Tabl 1.2 Favourit Tim of Eating Fast by Sampl Rspondnts Tim of Eating Fast Prcnt to 1. Morning Aftrnoon Evning It could b sn from th tabl 1.2 that 81 pr cnt of rspondnts xprssd thir viws that vning is thir favorit tim to at fast food and 15 pr cnt of thm rvald thir prfrnc is morning tim. Hnc, it is infrrd that fast food is mor dmandd in vning tims and hnc th fast food rstaurants may introduc or customiz nw fast food itms to suit for ths timings Rasons for ating Fast Th major factors which influncd th consumrs for ating fast food was analyzd and th rsults ar prsntd in th tabl 1.3. Tabl 1.3 Rasons for Eating Fast Rasons Prcnt to 1. Tast Convninc Altrnativ food Rlaxation Varity of mnu 9.00 It could b obsrvd from th tabl 1.3 that majority of th (56 pr cnt) rspondnts xprssd thir opinion that tast is th only rason to at fast food in th rstaurants followd by convninc (15 pr cnt) and altrnativ to hom food (11 pr cnt). Morovr, rlaxation and varity of mnu in fast food wr th othr rasons for ating fast food. Th rsults ar in similar to th rsults givn in th study by O Doughrty t al. (2006) that tast and convninc wr th important rasons for consuming fast food. Hnc, it could b infrrd that young consumr lifstyl trnd consists of tast, convninc and sking altrnat food itms which formd th major rasons for consuming fast food Pr Capita Monthly Expnditur on Fast Th consumption xpnditur towards fast food by th sampl rspondnts was analyzd and th rsults ar prsntd in th tabl 1.4. Tabl 1.4. Consumption Expnditur on Fast (Pr capita/ month) Consumption Prcnt to Expnditur (Rs.) Avrag xpnditur(rs.) It could b obsrvd from th tabl 1.4 that of th incom, 49 pr cnt of th rspondnts spnt on fast food rangs from Rs pr month whras, 21 pr cnt of th sampl rspondnts spnt on fast food rangs btwn Rs pr month. About 15 pr cnt of thm spnt Rs pr month on ating outsid and 15 pr cnt of th rspondnts spnt Rs pr month. On an avrag, th sampl rspondnts spnt Rs pr month towards fast food. Hnc, it is clarly vidnt that sampl rspondnts spnd considrabl amount of thir incom for ating outsid du to convnint lifstyl as it savs thir tim Consumr`s Satisfaction towards Consumption of Fast Th kind of satisfaction or bnfits ralizd by th sampl rspondnts on consumption of fast food was analyzd and th rsults ar prsntd in th tabl 1.5. Tabl 1.5 Consumrs Satisfaction on Fast Prcnt to Satisfaction 1. Tast Satisfaction Rlaxation/Spnding tim with frinds No bnfits 22.00

3 Intrnational Journal of Scintific and Rsarch Publications, Volum 4, Issu 2, Fbruary From th abov tabl 1.5, it could b obsrvd that 63 pr cnt of th sampl rspondnts ralizd satisfaction with consuming tasty foods and 15 pr cnt of th rspondnts rvald that sharing tim with frinds and rlaxation was th nxt important bnfit by consuming fast food in th fast food chains. Howvr, 22 pr cnt of th sampl rspondnts rvald that thy did not raliz any bnfits by consuming fast food and visit to fast food chains. Hnc, it could b infrrd that fast food rstaurants provids satisfaction to th young consumrs in th form of matching thir tast nds and rlaxation with frinds. Hnc, fast food chains may concntrat on introducing nw and mor varity of fast food mnus with diffrnt flavours to attract young consumrs Consumr`s Prfrnc towards Fast Mnu Thr ar varity of fast food mnus availabl in organizd fast food rstaurants. Gnrally, ths wid varitis of mnu ar catgorizd into thr and th prfrnc towards ths mnus by th sampl rspondnts was analyzd and th rsults ar prsntd in th tabl 1.6. Tabl 1.6 Consumr`s Prfrnc towards Fast Mnu Typ of Fast Prcnt to 1. Burgrs Sandwitch Pizzas Othrs 2.00 From th abov tabl, it could b obsrvd that 45 pr cnt of th sampl rspondnts prfrrd Sandwitch followd by Pizzas (30 pr cnt) and Burgrs (23 pr cnt). Hnc, it could b infrrd that Sandwitch was th most prfrrd fast food mnu by th young consumrs among othr varitis availabl in fast food chains. Ths rsults ar coincids with th rsults of Mahna t al. (2004) (i..) adolscnts and young adults in Nw Dlhi prfrrd pizza, burgrs, ic-cram, frnch fris and sandwitchs Prfrnc towards Fast Flavours Th sampl rspondnt`s prfrnc towards various typ of flavours in fast food was analyzd and th rsults ar prsntd in th tabl 1.7. Tabl 1.7 Prfrnc on typ of Flavour in Fast food Typ of Prcnt to Flavour 1 Spicy Flavour Swt Flavour 3 Fruit Flavour Othr 7.00 Flavours It is obsrvd from th tabl 1.7 that majority of th sampl of rspondnts (67 pr cnt) prfrrd spicy flavour as thir most favourit choic followd by swt flavour (20 pr cnt) and fruit flavour (15 pr cnt). Hnc, it is infrrd that spicy flavour is th most prfrrd flavour in fast food by th young consumrs. 2.1 Consumr`s Prfrnc towards Fast Rstaurants In th prsnt study, to analyz th prfrnc towards fast food rstaurants by th sampl rspondnts, factor analysis was usd. Tn variabls rlating to prfrnc on fast food rstaurants by th sampl rspondnts wr dvlopd. To idntify th most important factors which influnc thm to prfr th fast food rstaurants from larg numbr of variabls idntifid, Principal Componnt Analysis (PCA) was mployd using Varimax Rotation mthod. A variabl with factor loading mor than 0.50 has highr importanc among all th othr variabls in th group which has mor influnc on consumr prfrnc towards fast food rstaurants. Hnc, th variabls with factor loading of mor than 0.50 wr idntifid and catgorizd into composit factors viz., Affordability and Social Influnc, Halth and Srvic Quality, Tast and Location-orintation and Ambinc. Th rsults ar prsntd in th tabl 2.1. Tabl 2.1 Analysis on Consumr`s Prfrnc towards Fast Rstaurant- Factor Analysis Particulars Factors Variabls Factor Cumulativ % Eign valus % Varianc loading variation Factor 1 Affordability and Social Pric.596 Influnc Wid Choic of.561 Mnu Frinds Influnc.524 Dlivry tim.523 Factor 2 Halth and Srvic Srvic staff Quality ambinc.797 Halthy Mnu Availability Factor 3 Tast and Tast.673 Location- Location Proximity Orintation and Accssibility Factor 4 Ambinc Rstaurant Environmnt

4 Intrnational Journal of Scintific and Rsarch Publications, Volum 4, Issu 2, Fbruary It is obsrvd from th tabl 2.1 that ign valus of Affordability and Social Influnc, Halth and Srvic Quality, Tast and Location-orintation and Ambinc wr workd out to 1.557, 1.401, and 1.158, rspctivly. Sinc, ign valus of ths four factors ar mor than on, ths four factors wr considrd to b th most important factors influncing th consumr`s prfrncs towards fast food rstaurants. It is also obsrvd that four composit factors constitut pr cnt of th varianc. Hnc, it is concludd that Affordability and Social Influnc was found to b th most important factor which influncd th young consumrs to prfr fast food rstaurants followd by Halth and Srvic Quality, Tast and Location-orintation and Ambinc Consumption Expnditur on Fast To analyz th consumption xpnditur on fast food itms by th sampl rspondnts with rspct to gndr, `t tst was mployd. Th rsults ar prsntd in th tabl 3.1. Tabl 3.1. Consumption Expnditur on Fast by th Sampl Rspondnts 1. Particulars Consumption Expnditur (Rs/month/capita ) Mal (N= 50) Fmal (N=50 ) Calculatd `t valu 3.74* (0.0003) Tabl Valu Not: * dnots significanc at on pr cnt lvl (Figurs in parnthsis indicat th probability) It is obsrvd from th tabl 3.1 that on an avrag th mal and fmal gndr spnt Rs and Rs.1580 pr month towards fast food. Th man diffrnc btwn th consumption xpnditur btwn mal and fmal gndr was found to b Rs.690 pr month which is significantly highr in mal rspondnts i.. mal and fmal consumrs diffr with ach othr in trms of amount spnding on fast food consumption. Hnc, it is clarly vidnt that it is ssntial to customiz th mnus according to gndr spcifically in growing fast food markts to attract mor young consumrs. Conclusion 4.1. Spnding Bhaviour and Consumr`s Prfrnc on Fast Th analysis on frquncy of ating fast food by th sampl rspondnts rvald that 45 pr cnt of thm wr consumd fast food thr tims in a month and 34 pr cnt of rspondnts wr consumd fast food onc in month. Th avrag visit mad by th sampl rspondnts was thr tims in a month. Of th sampl, 81 pr cnt of th rspondnts opind that vning was thir favorit tim to at fast food. Analysis on rasons bhind ating fast food by th sampl rspondnts rvald that tast (56 pr cnt) is major rason to consum fast food followd by convninc (15 pr cnt) and altrnat to hom food (11 pr cnt).thy also xprssd that rlaxation and widr varity of mnu wr th othr rasons to consum fast food. Analysis on consumption xpnditur on fast food rvald that majority (49 pr cnt) of th sampl rspondnts spnt btwn Rs pr month and 21 pr cnt of thm spnt btwn Rs pr month. Th avrag pr capita xpnditur on fast food was Rs.1430 pr month. Th kind of satisfaction or bnfits ralizd by th sampl rspondnts on consumption of fast food rvald that tast satisfaction and sharing tim with frinds and rlaxation wr th two important bnfits ralizd by th young consumrs. Among th diffrnt typ of fast foods, sandwitch (45 pr cnt) was prfrrd most by th sampl rspondnts followd by Pizza (30 pr cnt) and Burgrs (23 pr cnt). Morovr, spicy flavour was th most prfrrd flavour by thm followd by swt and fruit flavours. 4.2.Consumr`s Prfrnc towards Fast Rstaurants Th analysis on consumr`s prfrnc towards fast food rstaurants using factor analysis rvald that Affordabl pric and Social Influnc, Halthy mnu and Srvic Quality, Tast and location and Rstaurant ambinc wr found to b th most important factors which influncd th young consumrs to prfr th fast food rstaurants Consumption Expnditur on Fast Th analysis on consumption xpnditur on fast food itms by th sampl rspondnts with rspct to gndr rvald that th pr capita consumption xpnditur on fast food by th mal and fmal gndr wr Rs.2270 an Rs.1580 pr month, rspctivly. Th man diffrnc btwn consumption xpnditur on fast food btwn mal and fmal gndr was found to b Rs.690 pr month and it is significantly highr in mal gndr. It shows that mal and fmal consumrs diffrd ach othr in trms of amount spnding on fast food consumption. Hnc, it is ssntial to customiz th mnus according to gndr spcifically in fast food sctor. CONCLUSIONS Th following conclusions could b drawn from th rsults of th prsnt study: Young, unmarrid, working profssionals having own lifstyl and wll ducatd prsons forms major consumr sgmnt in fast food sctor. Mal and fmal gndr has qual lifstyl bhaviour with rgard to consumption of fast food. Young consumrs hav lifstyl bhaviour of consuming fast food for about thr tims in a month which shows that fast food consumption trnd in Coimbator city is growing and has lot of markt potntial in futur. Tast, convninc and altrnat to hom food wr found to b major rasons for consuming fast food by th young consumrs. Young consumrs ar spnding considrabl amount of thir incom for ating outsid du to convnint lifstyl as it savs thir tim. Young consumrs prfrrd major fast food typs such as sandwitchs, pizzas and burgrs with spicy flavours. Fast food rstaurants provid satisfaction to th young consumrs in th form of matching thir tast nds and rlaxation with frinds. Mal and fmal consumrs diffrd in thir spnding bhaviour on fast food with rspct to consumption xpnditur. Affordabl pric of th mnu and frinds influnc, Halthy mnu and Srvic Quality, Tast and location proximity and Rstaurant ambinc wr important

5 Intrnational Journal of Scintific and Rsarch Publications, Volum 4, Issu 2, Fbruary factors which mad th young consumrs to prfr fast food rstaurants. Young consumrs prcivd that lack of halthy contnt of mnu, no nw varitis and slow dlivry tim wr th major problms in consumption of fast food. Young consumrs ar looking for halthy food for thir lifstyl and thy xpct foods which ar hom mad, nutritious and mor of vgtabl ingrdints to suit for thir halthy lifstyl. RECOMMENDATIONS Basd on th rsults obtaind from th study, following ar th markting stratgis and opportunitis rcommndd for fast food chains to tap th markt potntial and to attract young consumr sgmnt. Fast food and ating out has bcom lifstyl activity for both gndrs of youngr sgmnts. Hnc, it is ssntial for xisting fast food chains to mak thir brand imag and advrtismnts appaling as lifstyl product, rathr than a routin product. As th avrag frquncy of visits mad by th consumrs wr thr tims in a month, fast food chains may introduc rward schms. Thy may rward consumrs according to thir frquncy of visit and amount spnt. Th rward points may b addd and thy may b givn with discounts or offrs. Nw Fast food chains may dvlop product basd sgmntation of consumrs lik pizza lovrs, burgr atrs, tc., in ordr to incras th sals of particular product sgmnt. Fast food rstaurants must customiz fast food mnu and srvics sparatly for ag sgmnt and ag sgmnt to attract young consumrs. Rlaxation and sharing tim with frinds giv satisfaction to th young consumrs upon ating fast food. Hnc, crating fun stratgis such as ntrtainmnt wk, birthday fun, frinds fast, tc., could incras th sals for xisting fast food chains. As th young consumrs xpct halthir lifstyl, fast food chains may introduc varity of halthy food itms to attract and rtain th young consumrs. To dvlop awarnss on halthy mnu among consumrs, nutritional information of ach fast food mnu in th mnu card may b providd. Consumrs ar xpcting fast food itms that rsmbl hom food and this givs opportunity for playrs in organizd fast food markts. To mt this xpctation, it is ssntial to undrstand and find out young consumr`s favorit hom foods. Hnc, fast food chains may customiz ths hom mad food itms in fast food mnu to tap th markt potntial. As consumrs ar mor intrstd in nw fast food itms such as Dry Fruit Pizza, Mushroom Sandwitch, Grn Pas Sandwitch tc., ths mnus may b introducd in fast food rstaurants. Rfrncs [1] Acharya, and N.L. Agarwal (1994). Agricultural Markting in India. Nw Dlhi: Oxford and IBH Co Pvt Ltd, p.2 [2] Adlr, A. (1961). Supriority and Social Intrst: Northwstrn Univrsity Prss, p [3] Ahmavaara, Yrjo and Tourco Markkann (1958). Th Unifid Factor Modl: Th Finish Foundation, p.183 [4] Amrican Markting Association (2001). Markting Dfinitions A Glossary of Markting Trms, Chicago: Amrican Markting Association, p.35. [5] Basotia, V. (2001). Markting Managmnt, Jaipur: Mangaldp Publications, p.24. [6] Brkman, H.W. and Gilson, C.C. (1978). Consumr Bhaviour, Boston: Knt Publishing Company, p.108. [7] Charln, Kith (1997). Fast : Roadsid Rstaurants in th Automobil Ag, Nw York: Th johns Hopkins Univrsity prss, p.3. [8] Charls D S and R.M Smith (2007). Markting Concpts and Application, Nw York: Mc Graw Hill Book Company, p.224. [9] Cohn, Paul.R (2008). Markting communications: An Intgratd Approach, UK: Kogan Pag Limitd, p.3. [10] Cundiff, E. W., R. R. Still (1968). Basic Markting - Concpts, Environmnt and Dcisions, Nw Dlhi: Prntic-Hall of India Pvt. Ltd., p [11] Czinkota and Kotab, (2002). Markting Managmnt, Singapor: South Wstrn Collg Publishing Company, p.518, 527 [12] Emrson, Robrt L. (1994). Consumr Bhaviour in th Industry. A Europan Prspctiv, U.K: Buttrworth- Hinmann, Oxford, p.6 [13] Grn, P., E. Donald, Tull and Grald Albaum. (1998). Rsarch for Markting Dcisions, Nw Dlhi: Prntic Hall of India Pvt. Ltd, p [14] Hindl, T. (2004). Pockt Intrnational Businss Trm, London: Profil Books Ltd in Association with th Economist Nwspapr Ltd, p.241. [15] Josph, Hair; Charls W. Lamb and Carl McDanil (2007). Markting, Singapor: Thompson Asia Privat Ltd, p.39. [16] Kachru, K. (2005). Stratgic Managmnt - Concpts and Cass, Nw Dlhi: Excl Books, p [17] Kaisr, H.F. (1974). An indx of factorial simplicity, Psychomtrika, 39, [18] Khurana, P.K, (2001). Export Managmnt, Nw Dlhi: Galgotia Publishing Company, p.13, 19, 148, 447. [19] Kotlr, Philip. (1989). Markting Managmnt, Nw Dlhi: Prntic Hall of India Pvt. Ltd, p.90. [20] Kotlr, Philip. (2005). Markting Managmnt, Prntic Hall of India Pvt. Ltd, Nw Dlhi p.15, p.76.. First Author Y PRABHAVATHI, MASTER OF AGRIBUSINESS MANAGEMENT, prabhayanduri@gmail.com. Scond Author N T KRISHNA KISHORE, MASTER OF AGRIBUSINESS MANAGEMENT. tarakakishor999@gmail.com Third Author M. Ramsh Kumar, MASTER OF AGRIBUSINESS MANAGEMENT.