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ISSN 2321 - 2535

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Mr. Purushottamdas Pasari

Chairman

Mr. Kailash Chandra Agar

Secretary

Patron Dr. J.S.Panwar

Director, Shri Vaishnav Institute of Management, Indore

Editorial Board

Members

Prof. P. N. Mishra

Professor, Institute of Management Studies, Devi Ahilya University,

Indore

Prof. Nageshwar Rao

Professor, Pt. J. N. Institute of Business Management, Vikram University,

Ujjain.

Prof. Rajendra Prasad Das

Director, Institute of Management, Pt. R. S. University Raipur

Prof. P. K. Jain

Director, F.M.S MLS University, Udaipur

Prof. B. A. Prajapati

North Gujrat University,Patan

Prof. G. C. Maheshwari

M.S.University, Baroda, Gujarat

Prof. H. J. Jani Director MBA Program, Sardar Patel University, Anand Gujrat

Prof. Renuka Garg Professor & Head, Department of Business & Industrial

Management, South Gujarat University, Surat

Prof. Hemant Trivedi Professor, Marketing Strategies, School of Petroleum Management, Gandhi

Nagar

Prof. Pramod Paliwal Professor, Marketing, School of Petroleum Management,

Gandhi Nagar

Chief Editor Dr. Manasranjan Dashmishra, Associate Professor

Editor Dr. Sonal Chaudhary, Associate Professor

Editorial Team Dr. Manohar Kapse, Associate Professor

Dr. Vishnu Mishra, Associate Professor

Ms. Anuradha Pathak, Assistant Professor

Ms. Shruti P Maheshwari, Assistant Professor

Mr. Arnav Chowdhury, Assistant Professor

Technical Team

Mr. Shailesh Maheshwari, Assistant Professor

Mr. Manish Sharma, Computer Operator

Ms. Archana Dwivedi, Computer Operator

Editorial

SVIM e-journal of Applied Management is a double-blind peer-reviewed, open-

access journal published by Shri Vaishnav Institute of Management, Indore. The

journal carries research papers and analytical articles pertaining to the following

areas: strategic management, financial management, human resource

management, entrepreneurship, services, corporate governance, marketing, e-

business, information technology management, production & operations

management, decision analysis, management research methods and managerial

economics, etc.

The journal provides an academic platform for professionals and researchers to

contribute and share their research work with the larger academic fraternity. SVIM

e-journal of Applied Management carries original and full-length research papers /

articles that reflect the latest research and developments in both theoretical and

practical domain of business and management. The journal is published in online

version with free access and downloading facility. We have received a good

number of papers for this inaugural issue which were reviewed by an expert

committee and only 10 papers were recommended for publishing.

We congratulate all the authors for meticulously writing the papers that have gone

into this inaugural issue of the journal. We thankfully acknowledge the co-

operation, guidance and suggestions received from the expert review committee,

publications committee and other colleagues who have helped directly or

indirectly in bringing out this first volume in time. We also take this opportunity

to thank the Educational Board and Management of SVIM, especially Shri

Purushottamdasji Pasari, Chairman, Shri Kailashchandraji Agar, Secretary, and

the Director Prof. (Dr.) J.S. Panwar for having encouraged and supported us at

every stage.

We are also thankful to Shri V.S. Murthy, Administrative Officer- SVIM and

other technical staffs for their able support.

Dr. Manasranjan Dashmishra

Chief Editor

Contents Page No

Tata Corus Deal: How successful it is Till 2013?

Authors: Ankesh Mundra, Dr. D. T. Manwani

6-12

Recent Trends in Medical Tourism- Global View

Authors: Dr. C. Jothibaskara Mohan

13-19

An Empirical Analysis of Retail Purchase Behaviour to Develop Retail

Marketing Strategy for Global Retailers

Authors: Dr. Rupali Pramanik, Dr.Shakti Prakash, Dr.Gyan Prakash

20-38

Consumption Pattern of Soft Drinks and Fruit Juices: A Comparative Study

Authors: Dr. Simranjeet Kaur Sandhar, Dheeraj Nim, Shikha Agrawal

39-49

A Study of Employee Absenteeism in Hare Ram Cotton Mill of Chhindwara

Authors: Rajshree Barmase, Dr. Harish Shukla

50-63

Summary of the Thesis A Study on Job Discrimination –A Social Exclusion

(With Special Reference To Entry Level Managers)

Authors: Dr Neha Arora

64-78

Changing Patterns of Human Resource Development in Globalization

Authors: Madhuri Aggarwal Akash Datta

79-93

The Role of Contract Farming In Employment & Income Generation of

Farmers & Rural Development In India

Authors: Shailendra Kumar Singh

94-107

E- Commerce: A Key towards Automation

Authors: Kirti Lalwani

108-123

A Study of Glocalization Concept As A Current Trend in Indian Economy.

Authors: Deepti Sharma

124-135

http://www.svimi.org/ejournal/downloads/vol1issue1/1.pdf













Consumption Pattern of Soft Drinks and Fruit Juices: A Comparative Study ISSN 2321 - 2535

SVIM e-Journal of Applied Management Volume I Issue I January-June 2013 Page 39

Consumption Pattern of Soft Drinks and Fruit Juices: A

Comparative Study

Dr. Simranjeet Kaur Sandhar1 Dheeraj Nim2 Shikha Agrawal3

Abstract

Soft Drinks were common preference among all the individuals before juices were being introduced. With the changing lifestyle and income levels, people are shifting their consumption patterns and have therefore become more health conscious thus leading to increase in demand of juices.

The study focused on the preference and consumption pattern of soft drink and fruit juice on the basis of different age group of people living in Indore city. The study starts with determining the major factors affecting the consumption pattern of soft drinks and fruit juices, and ends up with the conclusion as per the state of mind of the average rational human being. The study concludes that there exists a significant difference between the consumption pattern of the soft drinks and fruit juices in all age groups. The study also remarked the frequency of consuming fruit juices is more than that of soft drinks due to health consciousness of people.

Introduction:

The beverage market is worth $55 billion worldwide. Today’s consumers are concerned

with overall health and wellness. As a result, there is significant impact on food and

beverage purchases. Many studies have shown that consumers are as concerned with

good health as they are about maintaining a high quality of life. The soft drink industry is

training people to seek out new products, even the big guys are coming out with limited-

edition flavors, and consumers are beginning to see that there is more flavor activity going

on in the category. Whether that really nets anybody any sales gains is another thing, but

it is teaching consumers to seek out and try new products. It is also trying to create some

excitement there.

In spite of several challenges and restrictions faced by this industry, it is a ‘roll’ like

never before. Customer preferences may have shifted, but they are still always on the

look out for a can of ‘coke’ or a new ‘flavored’ drink to quench their thirst.

1 Associate Professor, Indore Institute of Science & Technology, Opposite IIM, Rau, Indore. Ph: 8959304002,

[email protected] 2 Assistant Professor, Indore Institute of Science & Technology, Opposite IIM, Rau, Indore. Ph: 9755049750,

[email protected] 3 Sr. Corporate Trainer, Swami Vivekanand College of Engineering, Near Toll Naka, Khandwa Road Indore. Ph: +91-

9926013399, [email protected]

mailto:[email protected]

mailto:[email protected]



The size of the Indian food processing industry is around $ 65.6 billion, including

$20.6 billion of value added products. Of this, the health beverage industry is valued at

$230 million (The Great Indian Bazaar). A health aware nation and a rising interest in

maintaining and improving human life are just a few reasons why fruit and vegetable

demand has risen. Campaigns such as "5 A Day" promoted by the World Health

Organization (WHO) encourage people to consume five fruits or vegetables per day. The

food industry has responded to this demand by developing fresh and nutritional products

with conservation techniques that extend the shelf life of the product (Deliza, 1999).

Recent studies have shown that consumers from the developing countries spend almost

40% of their income on food and beverages. On the other hand consumers in developed

countries allocate only about one quarter of their income on these goods (Selvanathan &

Selvanathan, 2003); (Chen, 2001).

The three largest consumed categories of packaged foods are packed tea, biscuits

and soft drinks. The total soft drink (carbonated beverages and juices) market is

estimated at 284 million crates a year or $1 billion (The Great Indian Bazaar). The market

is highly seasonal in nature with consumption varying from 25 million crates per month

during peak season to 15 million during off-season. The market is predominantly urban

with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian

soft drinks market.

Today the majority of fruit juice products target children; however there is a need

for a nutritional drink for the adult. The purpose of this study is to develop a better

understanding of consumer’s consumption pattern of soft drinks and fruit juice as well as

the factors that affect these preferences.

Literature Review:

Most of the studies conducted on the customer satisfaction of beverage have been

reviewed in the subsequent section.

Gopi & Arasu, (2012) focused on factor analysis model and its application to

identify consumer preferences for a popular soft drink product in Dharmapuri. The results

depicted that the consumers’ preferences were characterized by four-factors: branding,

validation and prices, packaging and taste, respectively. Rotational factors successfully

extracted the factor of branding as the dominant factor. According to



Hutchings (2003), intensifying the fruit colors could strengthen expectation for the

juice flavor. Consumers with high environmental interests were more likely to pay a

premium for a fruit juice with organic ingredients and a nutritional index on the label

(Bonilla, 2010).

Mevlüt Gül, (2012) posited that product types (orange, sour cherry etc.) were

determined as the most important factor on consumers’ fruit juice purchasing preferences

with the rate of 28.34%. Other important factors were found as price level (16.83%),

having an international quality and food safety certificates (16.14%), being organic or not

(15.21%), production methods (13.06%) and containing sugar additive or not (10.43%).

The qualification set of fruit juice which maximizes consumer satisfaction was determined

as “the orange juice which is 100% fruit juice, without sugar additive, organic and has

international quality and food safety certificates and affordable price”.

The scientific studies about fruit juice consumption and consumer preferences are

very limited. One of them is the study which performed in Adana urban area, and socio-

economic factors’ effects on households’ fruit juice consumption are evaluated in this

study by using Tobit model (Ozdes, 1999). In another study which was performed by

using conjoint analysis, consumer behaviors and competition in meat and milk sector in

Erzurum were evaluated (Topçu, 2006). Besides this, fruit juice consumption’s

relationships with demographical variables, such as age, race and diets, were evaluated

in some studies in Germany and USA (Lorinczi, 2009). Moreover, Luckow and Delahunty

(Luckow, 2004) revealed their evaluations in their survey in 2004 about the consumers’

preferences about orange juice containing functional components.

Dhuna and Mukesh (1984) conducted a study to analyze the pattern of

consumption of soft drinks. A sample of 150 respondents was surveyed regarding their

consumption habits. Analysis revealed that 54 per cent of consumption was in summer

and 46 per cent during other seasons. It was found that about 26 per cent of the

respondents were regular consumers and the rest consumed soft drinks occasionally.

Shanmugasundaram (1990) studied soft drink preference in Vellore town of North

Arcot district in Tamil Nadu. The study revealed that the most preferred soft drink among

respondents was Gold Spot (26%) followed by Limca (24.8%), Sprint (22.8%) and

Thums-up (20.8%). It was found that taste was the main factor for preference of particular



brand and, among the media; television played a vital role in influencing consumer to go

for particular brand.

Namasivayam and Vijayakumar (2003) reported the consumption of carbonated

soft drinks in selected urban centres in Tamil Nadu. The study revealed that out of 360

respondents, 20.83 per cent of the respondents had the habit of drinking soft drinks

during travel, 16.66 per cent near home and 16.55 per cent in the bus stand.

Respondents aged less than 26 years consumed more soft drinks invariably in all places.

Among these sample respondents, 70.6 per cent were male and 29.4 per cent were

female. It was also found that 37.22 per cent respondents were students in college/

universities and consumed more soft drinks compared to other categories.

Objectives of the Study:

To develop and standardize a measure for studying the consumption pattern of

soft drinks & fruit juices.

To find out the underlying factors affecting consumption pattern of soft drinks &

fruit juices.

To analyze the preference of people (of different age groups) on consumption

patterns of soft drinks & fruit juices.

To open new vistas for further research.

Research Methodology:

The present study is exploratory in nature with survey method being used to

complete the study. The population of the study includes consumers / buyers of soft

drinks and fruit juices. The sample elements of the study were the individual respondents

(Male & Female) with the sample size of 200 respondents. Random sampling technique

was applied to select the sample from the market. Self designed Questionnaire was used

to collect the data for the study. The data was analyzed through the following tools:

1. Internal consistency was established through items to total correlation.

2. Reliability computed to check the questionnaire through Cronach’s (alpha), Split

half, Guttman, Parallel and Strict parallel method.

3. Factor Analysis was applied to identify the factors underlying consumption pattern

of soft drinks and fruit juices.

4. Z - Test was applied to evaluate the significant difference between consumption

pattern of consumers of different age groups consuming soft drinks and fruit juices.



Result and Observations:

Item to Total Correlation: Firstly Consistency of the entire items in the questionnaire

was computed by applying item to total correlation analysis. Under this correlation of

every item with total is measured and computed value is compared with the standard

value ( i.e.0.1379) if the computed value is found less than the standard value then the

statement is dropped & will be termed as inconsistent and if the computed value is more

than standard value the statement will termed as consistent.

Table 1: Item to total correlation analysis for consumption pattern of soft drinks

Item Value of r Consistency Accepted/ Dropped

1. I consume soft drink when I feel thirsty 0.466503 Consistency Accepted

2. I consume soft drinks only in parties & celebrations. 0.31904 Consistency Accepted

3. I consume soft drinks without any reason (just like that). 0.559799 Consistency Accepted

4. Price with quantity induces me to buy soft drinks. 0.492195 Consistency Accepted

5. As a health drink I buy soft drink. 0.486237 Consistency Accepted

6. As a status symbol I buy soft drink. 0.463015 Consistency Accepted

7. The taste of it induces me to buy soft drink. 0.684725 Consistency Accepted

8. The variety induces me to buy soft drink. 0.736873 Consistency Accepted

9. Season influences me to buy soft drink. 0.559149 Consistency Accepted

Table 2: Item to total correlation analysis for consumption pattern of fruit juices

Item Value of r Consistency Accepted/ Dropped

10. I consume Fruit juices when I feel thirsty 0.545803 Consistency Accepted

11. I consume Fruit juices only in parties & celebrations. 0.332555 Consistency Accepted

12. I consume Fruit juices without any reason (just like that). 0.583548 Consistency Accepted

13. Price with quantity induces me to buy Fruit juices 0.545476 Consistency Accepted

14. As a health drink I buy Fruit juices. 0.579008 Consistency Accepted

15. As a status symbol I buy Fruit juices. 0.539946 Consistency Accepted

16. The taste of it induces me to buy Fruit juices. 0.687846 Consistency Accepted

17. The variety induces me to buy Fruit juices. 0.641332 Consistency Accepted

18. Season influences me to buy Fruit juices. 0.65663 Consistency Accepted

The Item to total Correlation was more than the standard value for all the factors

affecting the consumption pattern of soft drinks and fruit juices (refer table 1 & 2), so all

the factors are found consistent in the correlation.

Reliability Measures: Reliability test was carried out using SPSS Software and the test

measures are given below.



Table 3: Reliability Measure on consumption pattern

Validity:

Face Validity of questionnaires was tested and it was found to be very high.

Factor Analysis: Factor analysis was carried out using SPSS software on consumption

pattern of soft drinks and fruit juices.

Table 4: Factors with various items analyzed for consumption pattern of Soft

drinks.

Factors Eigen value

Convergence of variance Loadings Total

% of variance

Customer Preferences

2.522

28.021

16. The taste of it induces me to buy soft drink. 0.791

17. The variety induces me to buy soft drink. 0.767

18. Season influences me to buy soft drink 0.711

9. I consume soft drinks without any reason (just like that).

0.656

7. I consume soft drink when I feel thirsty 0.404

13. Price with quantity induces me to buy soft drinks. 0.380

Societal Concerns

1.456

16.177

15. As a status symbol I buy soft drink. 0.745

14. As a health drink I buy soft drink. 0.610

8. I consume soft drinks only in parties & celebrations.

0.550

Table 5: Factors with various items analyzed for consumption pattern of Fruit

Juices

Factors

Eigen value

Convergence of variance Loadings Total % of variance

Customer Preferences

2.590

28.777

22. The taste of induces me to buy Fruit juices. 0.774

23. The variety induces me to buy Fruit juices. 0.770

20. As a health drink I buy Fruit juices 0.750

12. I consume Fruit juices without any reason (just like that).

0.630

24. Season influences me to buy Fruit Juice 0.421

Logical Concerns

1.712

19.024

11. I consume Fruit juices only in parties & celebrations.

0.760

10. I consume Fruit juices when I feel thirsty. 0.552

19. Price with quantity induces me to buy fruit juices. 0.527

21. As a status symbol I buy fruit juices. 0.502

Measure Soft Drinks Fruit Juices

Cronbach’s Alpha 0.676 0.735

Split half 0.697 0.704

Guttman 0.686 0.738

Parallel Estimated 0.676 0.735

Unbiased 0.679 0.737

Strict Parallel Estimated 0.638 0.676

Unbiased 0.643 0.681



Z – Test

Table 6: Statistics of Z Test

Sample Combination Mean value Z - value Standard

value

1. Respondent less than 20 years Soft Drinks V/s Respondent less than 20 years Fruit Juices.

37.08163

2.93689

1.96

42.30612

2. Respondent 20-35 years Soft Drinks V/s Respondent 20-35 years Fruit Juices

35.7931

4.587322

1.96 41.48276

3. Respondent 40 years and above Soft Drinks V/s Respondent 40 years and above Fruit Juices

35.62857

2.751783

1.96 40.62857

Null Hypothesis H01 – There is no age wise significant difference between

consumption pattern of soft drinks & Fruit juices in the age category of less than 20 years.

Alternative Hypothesis Ha1 – There is age wise significant difference between

consumption pattern of soft drinks & Fruit juices in the age category of less than 20 years.

As shown in table 6, the value of Z of the consumption pattern of respondents in

Soft Drinks category V/s the consumption pattern of respondents in the Fruit Juices

category with the age group less than 20 years is 2.93689 which is higher than the critical

value (± 1.96 at 5% level of significance). So our Alternative Hypothesis Ha1 is accepted

i.e. there is significant difference of consumption pattern between soft drinks & fruit juices.

But looking at the mean value, the mean value of fruit juices (42.30612) is greater than

the mean value of soft drinks (37.08163). So it can be said that frequency of consumption

of fruit juices is greater than the soft drinks in the age group of less than 20 years.


consumption pattern of soft drinks & fruit juices in the age category of 20-35 years.


consumption pattern of soft drinks & fruit juices in the age category of 20-35 years.



Similarly, the Z value of the consumption pattern of respondents in soft drinks

category V/s the consumption pattern of respondents in the fruit juices category with the

age group between 20 - 35 years is 4.587322 which is higher than the critical value (±

1.96 at 5% level of significance). So our Alternative Hypothesis Ha2 is accepted i.e. there

is significant difference between consumption pattern of soft drinks & Fruit juices in the

age category between 20 - 35 years. But their mean value depicts that the consumption

frequency of fruit juices (41.48276) is greater than that of the soft drinks (35.7931).


consumption pattern of soft drinks & Fruit juices in the age category of 40 years and

above.


consumption pattern of soft drinks & Fruit juices in the age category of 40 years and

above.

The Z table results also depict that the value of Z of the consumption pattern of

respondents in soft drinks category V/s the consumption pattern of respondents in the

fruit juices category with the age group of 40 years and above is 2.751783 which is higher

than the critical value (± 1.96 at 5% level of significance). So our Alternative Hypothesis

Ha3 is accepted i.e. there is significant difference between consumption pattern of soft

drinks & Fruit juices in the age category of 40 years and above. The mean value of fruit

juices (40.62857) is greater than the mean value of soft drinks (35.62857). So it can be

said that the consumption frequency of fruit juices is greater than that of soft drinks in this

category.

Implications & Suggestions:

This study intended to be a useful contribution to the companies to understand which

factors are more responsible for the “consumption pattern” of soft drinks & fruit juices and

can make necessary changes to their marketing strategies whenever is required. It is also

intended to be useful contribution to the promotion of the soft drinks & fruit juices.

As a last objective, the study has opened various areas to conduct an extensive research

considering more geographical, demographical parameters. The study can also be



conducted taking different variables into account like satisfaction level, buying behavior

etc. as well as seasonal drinks.

Conclusions:

With the increased importance of health and nutrition, changing life styles and

higher incomes, the Indian food market offers numerous opportunities for new products

and product modifications. The purpose of this study was to develop a better

understanding of consumption pattern of soft drinks and fruit juices of consumers at

Indore city. Results from descriptive statistics for the survey indicated that 42% of the

respondents prefer Soft Drinks and 58% of the respondents prefer fruit juices. Through

the survey it was conveyed that weekly consumption of soft drinks is lower than the

weekly consumption of fruit juices. The majority of the respondents consume soft drinks

and fruit juices at the time of parties & celebrations. The basis of soft drinks consumption

is its taste, price and an aid to put off thirst and for that of fruit juices is the health

consciousness of consumers. An important finding that emerged out of the survey was

that 61% of the respondents think that advertisements affect their purchases and 39% of

the respondents think that advertisements do not affect their purchases. The study

concludes that there exists a significant difference between the consumption pattern of

the soft drinks and fruit juices in all age groups. The study also remarked the frequency of

consuming fruit juices is more than that of soft drinks due to health consciousness of

people.



References:

Bonilla, T. (2010, August). Analysis of consumer preferences toward 100% fruit juice

packages and labels. Costa rica.

Chen, D. L. (2001). World Consumption Economics. World Scientific, NJ .

Deliza, R. H. (1999). An investigation using the repertory grid and focus group methods of

the package features affecting consumer perception of fruit juice. Brazilian Journal

of Food Technology , 2, 63-71.

Dhuna, M. (1984). An Analysis of Consumer Behaviour. International Journal of Marketing

, 14 (7), 26-28.

Gopi, K., & Arasu, R. (2012). Consumer preferences towards soft drink products in

dharmapuri – a factor analysis evidence. Namex International Journal of

Management Research , 2 (1), 38-47.

Hutchings, J. B. (2003). Expectations and the Food Industry: The impact of color and

appearance. Kluwer Academic Plenum Publishers .

Lorinczi, K. (2009). Health factor in soft drink consumption: German example. Applied

Studies in Agribusiness and Commerce , 3 (3 & 4), 41-44.

Luckow, T. a. (2004). Consumer acceptance of orange juice containing functional

ingredients. Food Research International , 37 (8), 805-814.

Mevlüt Gül, M. G. (2012). The analysis of households’ purchasing preferences for fruit

juice in Turkey. Journal of Food, Agriculture & Environment , 10 (3 & 4), 119-123.

Namasivayam, N. V. (2003). A study on socio economic profiles and place of

consumption pattern of carbonated soft drinks in selected urban centres in Tamil

Nadu. International Journal of Marketing , 33 (5), 23-27.

Ozdes, A. O. (1999). Analysis of concentrated fruit juice demand using the Tobit Model.

Tr. J. of Agriculture and , 23, 493-499.



S., S. (1990). Demographic and psychological factors that influence the pattern and

selection in soft drinks and tetra pack drinks - A study in Vellore. International

Journal of Marketing , 20 (7), 102-106.

Selvanathan, E. A., & Selvanathan, S. (2003). International Consumption Comparisons:

OECD vs LDC. World Scientific, NJ .

The Great Indian Bazaar. (n.d.). Retrieved 2 20, 2013, from Indian Bazaar:

http://www.ibef.org/download/indianbazaar_jan19.pdf

Topçu, Y. (2006). Brand competition and consumer behaviours in dairy products: A Case

Study in Erzurum Province. Atatürk University.

Documents

ISSN 2321 - 2535 - svimapp.svgipsar.orgsvimapp.svgipsar.org/ejournal/downloads/vol1issue1/4.pdf · management, decision analysis, management research methods and managerial economics,