1

CHAPTER-1

INTRODUCTION

1.1 Background

Brand preferences reflect the desire to use a particular company product’s even when

there are equally-priced and equally-available alternatives. Brand preference is

important to companies because it provides an indicator of their customers' loyalty,

the success of their marketing tactics, and the strength of their respective brands. A

soft drink is a drink that typically contains carbonated water, a sweetener, and a

natural or artificial flavouring.

People's lifestyle and living pattern have changed nowadays. Soft drinks are

most common preferences among all individuals especially youths. Soft drink is an

important product item in modern society both urban and rural and becoming more

popular in the consumer world. At present soft drink market is one of the most

competitive markets in the world. In Nepal the soft drink industry is flourishing.

Youths are especially being attracted towards soft drinks. This study “Brand

preferences of youth on soft drink “is conducted so that it can help to determine the

youth's purchasing decisions. Youth's purchasing decision depends upon taste, price,

advertisement, quality, availability etc.

This study focuses on youth's perception and their attitude towards soft drinks

which helps in examining key attitude of buying and branding perception that are

considered as important cues, which lead youth to select particular brand of soft drink.
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1.2 Problem Statement

Soft drinks are being more popular in this modern period. There are many brands that

produce soft drinks to attract customers. Youths are being more attracted towards

these drinks. It is very necessary to analysis the brand preferences of the youths and

the factor that influences the purchasing decision of the youths.

There are many researches related to brand preferences of consumers on

buying soft drinks however this research this related to know the brand preferences of

youths only. This research focuses only on the price (independent variables) and

advertisement (moderating variable) affecting on purchasing decision.

Research questions:

 How often do youths consume soft drinks?

 Can price be determined as independent variable on buying soft drinks?

 What youths mainly look for the products?

1.3 Objectives

The main objectives of this research are to identify the brand preferences of soft

drinks among youths. The other objectives of this research are as follows:

 To analysis the factor influencing youth that determine their purchase

decision.

 To understand purchase behaviour of the youths.

 To understand youths perception on soft drinks.

 To understand what youths prefers most towards soft drinks.

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1.4 Rationale

The main significances of study are:

 It helps soft drinks companies to know the youth perception regarding their

products.

 It helps soft drinks companies to increase their products satisfaction among

youths.

 This report can be help for further researchers.

 This report can be used as guidance for the students of VISHWA ADARSHA

College.

1.5 Report Structure

The field report contains five parts which can be summarized as:

The first chapter “Introduction” includes background, problem statement,

objectives, rationale and report structure.

The second chapter “Related Literature Review” includes conceptual review,

review of previous work and research gap.

The third chapter “Methods” includes types of research, population and

sample, types of data, data collection procedures, instruments, techniques of analysis

and limitation of the study.

The fourth chapter “Results and findings” includes presentation of data in

table and figures and their analysis and major findings.

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The fifth chapter “discussion and Conclusion” includes discussions,

conclusion and implication of the report.

 5

CHAPTER-II

RELATED LITERATURE REVIEW

However a number of studies have been conducted in the form of surveys and

Research work done on consumption pattern and brand preference towards soft drink

product. An attempt has been made to understand and acknowledge the work of

various researchers in the field of brand preference and consumption pattern of soft

drinks.

2.1 Conceptual review

Every research is based on the theory. This theory is known as the theoretical

framework of the study. Theoretical framework of the study gives the authentic

support for the report. One of the most competitive products in the world at present is

soft drinks. Soft drinks industries are investing a lot of money in advertisement so that

they can attract the customers especially youths.

Price Preferences of soft drinks

Occasion
(Independent Variable) (Dependent Variable)

Advertisement

(Moderating Variable)

Fig: Theoretical Framework

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What is soft drink?

A non-alcoholic, flavour, carbonated beverage, usually commercially prepared and

sold in bottles or cans. Non-alcoholic beverage, usually carbonated, consisting of

water (soda water), flavouring, and a sweet syrup or artificial sweetener. Today there

are hundreds of varieties of flavoured soft drinks. Coca-Cola and PepsiCo are the

world’s largest corporation founded their business on soft drink manufacturing

Soft drinks can trace their history back to the mineral water found in natural spring.

bathing in natural springs has long been considered a healthy thing to do; and mineral

water was said to have curative power. Scientists soon discovered that gas arbonium

or carbon dioxide was behind the bubbles in natural mineral water.

The marketed soft drinks (non-carbonated) appeared in the 17th century. They

were made from water and lemon juice sweetened with honey. In 1679, the

Compazine delimonadiers Paris were granted a monopoly for the sale of lemonade

soft drinks.

There are different types of raw materials used in different soft drinks. Most of

the raw materials are:

 Water: the simple sweetened soft drink contains about 90% of water, while in

diet drinks. It contains 95% of water.

 Flavour: flavour is of great importance in soft drink. Even water from

different places has different taste. The flavour for taste added can be natural

or artificial, acidic, caffeine.

 Acids: acids like citric acid & phosphoric acid are added to give refreshing

tartness or bite & help in preserving the quality of a drink.

 7

 Natural flavours: these are the flavours, which are extracted from fruits,

vegetables, nuts, barks, leaves etc. in soft drink containing natural flavours&

fruit juice.

 Artificial flavour: these are the flavours manufactured from natural extracts.

This is used to give greater choice, in taste to consumers.

 Caffeine: caffeine has special kind of taste makes the taste of soft drink a

royal one. Caffeine was added to soft drink from its introduction to a

commercial market but now caffeine free soft drinks are also available. Its

quality is Y4 than compared with same amount of coffee.

 Carbon dioxide: carbon dioxide is a colourless & smells less gas, which is

added to cold drink to get bubble & it also help in keeping drink strong &

fresh.

 Colour: along with taste of soft drinks is also of very important, the company

tries to maintain both taste & colour of the soft drink everywhere in the

world. 

 Sugar: sugar syrup is added to the drink at around 75 degree C to the pure

drinking water, this is to make soft drink taste sweet. Even artificial sweetness

is also use

2.1.1 Independent Variables

In this research report, two major factors price and occasion is considered as

independent variables. Independent variables are variable which influences the

dependent variable in positive or negative way. In this report price and occasion are
 8

independent variables as it directly affect the preferences of soft drinks among youths.

2.1.2 Dependent Variables

Variables, which are affected by the change in independent variables, are known as

dependent variable. In this research, preference of soft drink is dependent variable as

it is directly related to the price and occasion of purchasing soft drink.

2.1.3 Moderating Variables

Every time price and occasion may not determine brand preferences of youths on

buying soft drinks sometimes advertisement plays a major role which may modifies

the relationship between those two variables and affect the preferences of youths on

buying soft drinks.

2.2 Review of Previous Work

Consumption of soft drinks among youths is being common nowadays. Different

people are having different taste regarding soft drinks. Not only taste, consumers

prefer the particular brand on the basis of the price, advertisement or occasion.

Consumption level differs from the demographic factor of the people i.e. age, gender

or their educational level. Many studies have been conducted to analyse the brand

preference of youth or to identify whether youth’s are loyal to particular brand or not.

However, there are only few studies conducted in perspective of Nepalese Youth.

Soft drink is one of the major products that are preferred by youths. Study conducted

by researcher such as (Arunkrishan. O. R., 2014/15) show that people are consuming

a particular soft drink brand which satisfies their taste as well as its quality. People
 9

consume that brand which is easily available nearby them. And it can be said that soft

drinks is used to satisfy people’s taste.

According to Arunkrishan O.R., youths are being more addicted towards

soft drinks as soft drinks as it helps aid off the thrust. Similarly Price, Advertisement

and taste are main factors which attract youths. A study shows that out of 200

respondents 100% respondents consume soft drinks .The study also shows that female

consume more soft drinks in comparison to male.

2.3 Research Gap

Research gap refers to the untouched area or area of contradiction after the literature

review. Various studies have been done under the topic Brand preference of youth on

buying soft drinks but they are concerned with the study of contemporary periphery of

study time. There is a research gap on the studies that they have not current situation

on Brand preference of youth on buying soft drinks.

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CHAPTER-III

METHODS

3.1 Types of Research

Research is a systematic and organized effort to investigate a specific problem that

needs a solution. This process of investigation involves a series of well throughout

activities of gathering, recording, analysis and interpreting the data with the purpose

of finding answers to the problem.

There are various types of research such as applied, descriptive, quantitative

and conceptual research. This report follows descriptive research method. A

descriptive research identifies problem or justify current condition and practices to

make comparisons and evaluations in making future plans and decisions. In other

words, it is a process of accumulating facts. One may undertake a descriptive study

about the workers in a factory, their age distribution, community-wise distribution

level, state of physical health etc. A descriptive research is a process of accumulating

facts, views, or opinion of the people towards any right, capital punishment, college

autonomy, an industrial establishment etc. It does not necessarily seek to explain

relationship, test hypothesis, make predictions or get at meanings and implications of

the study.

3.3 Population and sample

The research is carried out among the students of VISHWA ADARSHA COLLEGE
 11

Population: All the colleges of Sunsari

Sample: VISHWA ADARSHA COLLEGE

Sampling area: Sunsari

Sample methods: Convenience sampling method

Sample Size: 100 students

Sampling frame: College students studying in 10+2 and bachelor (BBA & BBS)

Unit of Analysis: Individual analysis

3.3 Types of Data

Data refers to the information or facts collected through record, observation and

measurement. Data can be collected from two sources i.e. primary and secondary. The

types of the data to be used depend upon the nature and purpose of the study.

3.3.1 Primary data

Primary data refers to those data which are collected for the first time for certain

specific purpose. These data are original in nature. They are also called first hand data

or field data or basic data or pure data. Primary data are those where the researcher

himself goes to the field and collects required data and information by observing or

questioning or interviewing the different events. Primary data are usually in the form

of raw materials. In others word, they are the data that did not previously exist in any

organized fashion. Generally, primary data requires large amount of expenses and

require long period in collecting the data but such data may be highly reliable and

accurate.
 12

3.3.2 Secondary data

When the primary data is used by the person or which the researchers collect from the

record person is secondary data. These are the data which are originally collected but

obtained from some published or unpublished sources. These types of data are not

original in nature. Sources of secondary data include scale information, internally

generated research report, books, periodical published reports etc. Secondary data

generally may not require large amount of expenses and long time.

To prepare this field report, I have used primary method of data collection.

However, most of the information regarding this topic is collected from primary

source.

3.4 Data Collection Procedure

The primary method of data collection will be used in this research and the tool of

analysis will be questionnaire. Questionnaire is divided into two section i.e. personal

details and descriptive analysis. Personal details include age, gender and educational

level of the individuals similarly descriptive analysis deals with individual’s

perception towards the brand of soft drinks.

3.5 Instruments

Data is collected from the students reading in Vishwa Adarsha College of

management through the help of questionnaire from April 20th to April 30th.
 13

3.6 Techniques of Analysis

Data is collected through questionnaire methods and that collected data will be

represented in figures and table. Similarly detail study of this research is also carried

out through descriptive statistical analysis such as bar diagram, pie-chart, and

percentage as well as inferential statistical analysis are also being used such as chi-

square method.

3.7 Limitations

The limitations of the study are:

 This research will be conducted only among students of Vishwa Adarsha

College which may not be useful for analysing overall youths.

 This study will be conducted only for specific period of time.

 There is no sufficient sample which helps to analyse overall students of

Vishwa Adarsha College.

 As only convenience method of sampling is done which may create personal

bias.
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CHAPTER-IV

RESULTS AND FINDINGS

This survey is conducted to know the brand preferences of youth on buying soft

drinks. Sample sizes of 100 respondents were selected from Vishwa Adarsha College.

Out of 100 respondents 57 were male whereas 43 were female. Further data are

presented below.

4.1 Presentation of Data in Tables and Figure and Their Analysis

4.1.1 Number of male and female respondents

Figure 1: Pie-Chart Showing Number of Male and Female Respondents

Number of Male and Female Respondents

Male
43%

Female
57%

Male Female
Sou

rce: Online survey, 2017

Out of 100 samples, 57% were male and 43% were female respectively.
 15

4.1.2 Number of respondents on the basis of the age group

Fig 2: Pie-Chart Showing the Number of Respondents on the Basis of Age Group

Age-group
24-26
12%

18-20
36%

21-23
52%

Source: online survey, 2017

Out of 100 samples, 36% of respondents belonged to age group from 18-20. Similarly

52% and 12% of the respondents belonged to age group from 21-23 and 24-26

respectively.

4.1.3 Number of respondents on the basis of educational level

Fig 3: Pie- Chart showing the respondents on the basis of educational level

Educational Level
18%

10+2
Bachleor

82%

Source: online survey, 2017

 16

Out of 100 samples, 82% were studying in Bachelor and rests were studying 10+2.

Brand Preferences of Youth on Soft Drinks:

4.1.4 Consumption of Soft Drink

Fig 4: Pie- Chart showing consumption of soft drinks

Consumption of Soft Drinks

1% Yes
No

99%

Source: online survey,2017

Out of 100 respondents only 1% responded that they don’t like soft drinks however

100% respondents drink soft drinks.

4.1.5 Preference of different brand of soft drinks (Chi-square test)

Null hypothesis (H0): All the brands of soft drink are equally preferred by youths.

Alternative hypothesis (H1): All the brands of soft drink are not equally preferred by

youths.

Table 1

Calculation of Chi-square Test

Observed Expected Chi-square(O-

Brands frequency (O) frequency (E) E)^2/E
Coco-cola 34 6.67 18.027
Pepsi 7 6.67 5.607
Sprite 28 1 7.707
 17

6.67
1
Fanta 15 6.67 0.167
1
Slice 13 6.67 0.807
1
Other 3 6.67 11.207
Total 100   43.520
Source :Appendix-A
Calculated Chi Square Value = 43.520

Tabulated value = 11.07 (where Degree of freedom is 5 and level of significance is

0.05)

As the calculated value is greater than tabulated value (43.520>11.07) we reject the

null hypothesis and accept alternative hypothesis.

Therefore it was found that all the brands of soft drinks are not equally preferred by

youths.

4.1.6 Frequency of Consumption of Soft Drinks in a Week

Null hypothesis (H0) =Youths consume soft drinks daily

Alternative hypothesis (H1) = Youths doesn’t consume soft drinks daily

Table 2

Calculation of chi-square test

Chi-
Expected
Observed frequency square( O
frequency ( E)
Consumption (O) -E)^2/E
Daily 21 20 0.05
2-4 times a week 25 20 1.25
More than 4 times a week 15 20 1.25
Once in a week 32 20 7.2
Other 7 20 8.45
Total 100   18.2
 18

Source-Appendix-B
Calculated Chi-square = 18.2

Tabulated Chi-square= 9.49 (where degree of freedom is 4 and level of significance is

0.05)

As calculated value is greater than tabulated value (18.2> 9.49) we reject null

hypothesis and accept alternative hypothesis.

4.1.7 Degree of Satisfaction on consumption of preferred soft drinks

Table 3

Satisfaction level of youth

Particulars Percentage

Highly Satisfied 45.5%

Satisfied 54.5%

Dissatisfied 0%

Highly Dissatisfied 0%

Source: online survey, 2017

From the above table it is clear that majority of youths are satisfied with their product

whereas no one are dissatisfied with the products they have preferred.

4.1.7 Sources of Information

Figure 5 Pie Chart showing sources of information

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Sources of information
No
36%

Yes
64%

Source: online survey, 2017

Out of 100 respondents 64% prefer source of information while 36% don’t refer any

sources of information.

4.1.8 Sources of information

Table 4: Showing the sources of information that youth prefer the most

Sources of information Percentage

Advertisement 52.3%

Internet 7.7%

Friends 35.4%

Newspaper
4.6%
Others 0%
Source: online survey, 2017

From the above table it is clear that youth’s mostly prefer advertisement as a major

source of information.

4.1.9 Price and its effect on purchasing decision

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Fig No.6: Bar Diagram showing the decision of youths regarding price

Price affect on Purchasing Decision

79.40%

80.00%
60.00%
40.00% 20.60%

20.00%
0.00%
Yes No

Percentage

(Online survey,2017)

In this diagram, it is shown that majority of respondents think price affect the

purchasing decisions.

4.1.10 Price and its effect on purchasing decisions

Null Hypothesis (H0) = If new soft drink is introduced in market with low price,

youths may not prefer it. Alternative Hypothesis (H1) = If new soft drink is

introduced in market with low price, youths may prefer it

Table 5

Calculation of Chi-Square method

Particulars Observed Frequency Expected Frequency Chi-square(O-

(O) (E) E)^2/E
Not at all 14 25 4.84
I may
consider 51 25 27.04
Yes 9 25 10.24
Can't say 26 25 0.04
Total 100   42.16
Source: Online, 2017
 21

Calculated Chi-Square value = 42.16

Tabulated Chi-Square value = 7.28 (where degree of freedom is 3 and level of

significance)

Since calculated Chi-square value is greater than tabulated value (42.16> 7.28) null

hypothesis is rejected and alternative hypothesis is accepted.

In conclusion youth may prefer the new brand if it is offered with low price.

4.1.11 Advertisement and Its Effect on Purchasing Decision

Fig 7 Pie-Chart Showing Participants Who Think Advertisement Affect Purchasing

Decision

No. of Participants who Think Advertisement Affect

Purchasing Decision

Yes
8% No

92%

(Online survey, 2017)

Among 100 respondents, 92%of respondents think that advertisement affect

purchasing decision whereas 8% of respondents think that advertisement doesn’t

affect purchasing decision.

Table 6

Factor that attracts youth’s on advertisement

Factors Percentage
 22

Creativity 23.5%

Brand Ambassador 22.4%

Idea of delivering message 30.6%

None of the above 23.5%

Source: Online, 2017

From the above table it shows that 23.5% of the youths are attracted towards

creativity of the advertisement. Similarly 22.4%, 30.6%, 23.5% of the youths are

attracted towards brand ambassador, idea of delivering message and none of the

above respectively.

4.1.12 Occasional buying habit

Null hypothesis= Youths buy drinks occasionally

Alternative hypothesis= Youths buy drinks regularly

Table 7

Calculation of Chi-square

Observed Expected Chi-square

Particulars frequency(O) frequency ( O-E)^2/E
Festivals 9 16.67 3.527
Party 9 16.67 3.529
Gathering 21 16.67 1.125
 23

Leisure time 8 16.67 4.509

No specific reason 52 16.67 74.878
Other 1 16.67 14.730
Total 100   102.297
Source: Appendix-C

Calculated Chi-Square = 102.297

Tabulated Chi-Square= 11.07(Where degree of freedom is 5 and level of significance

is 0.05)

Since calculated Chi-square is greater than tabulated Chi-square (102.297>11.07)

we accept alternative hypothesis. Therefore youths buy soft drinks regularly.

4.1.13 Rank of the brand

Table 8

Rank of the Products

Coco-

Rank cola Pepsi Sprite Fanta Slice

1 39% 2.40% 31% 16.70% 12.20%
2 22% 17.10% 31% 19% 9.80%
3 17.10% 39% 23.80% 11.90% 9.80%
4 4.90% 24.40% 7.10% 33.30% 19.50%
5 17.10% 17.10% 7.10% 19% 48.80%
Source: online survey,2017

From this table it is analysed that youth prefer Coco –cola most as 39% or 39

respondents gave number 1 rank to it. Similarly, 31% of the youth prefer sprite along

with Fanta, slice and Pepsi respectively.

4.2 Major Findings

The major findings of the research are:

 Out of 100 samples, 57% were male and 43% were female.
 24

 In this study, 36% of respondents belonged to age group from 18-20. Similarly

52% and 12% of the respondents belonged to age group from 21-23 and 24-26

respectively.

 In this study, 82% of respondents are studying in Bachelor and rests are

studying 10+2.

 Out of 100 respondents only 1% responded that they don’t like soft drinks

however 100% respondents drink soft drinks.

 From the chi-square method, it was found that all the brands of soft drinks are

not equally preferred by youths.

 Similarly it was found that youth doesn’t consume soft drinks daily.

 Majority of respondents are satisfied with the brand they preferred.

 Out of 100 respondents 64% prefer source of information while 36% don’t

refer any sources of information.

 Youth prefer advertisement as a major source of information followed by

friend and so on.

 From the survey it is found that majority of respondents think price affect the

purchasing decision.

 From the chi-square method it was found that youth may prefer the new brand

if it is offered with low price

 In this study among 100 respondents, 92% of respondents think that

advertisement affect purchasing decision whereas 8% of respondents think that

advertisement doesn’t affect purchasing decision.

 25

 From the survey it was found that 23.5% of the youths are attracted towards

creativity of the advertisement. Similarly 22.4%, 30.6%, 23.5% of the youths

are attracted towards brand ambassador, idea of delivering message and none

of the above respectively.

 From the chi-square it was found that youth’s doesn’t consume soft drink

occasionally.

CHAPTER-V

DISCUSSION AND CONCLUSION

5.1 Discussions

Soft drink is one of the most preferred carbonated drinks. The study examined the

youth’s preference on buying soft drinks. The sample size of the conducted research is

100 using convenience sampling. All the respondents were studying on Vishwa

Adarsha College and consume soft drinks.

 26

Almost every respondent consume soft drinks frequently and most of the

respondent consume coco-cola most followed by sprite. Moreover, the study found

that the respondents were satisfied with the products.

Chi-square statistics was used to test the hypothesis which analyse that almost

every youth consume soft drink without any occasion.

5.2 Conclusion and implications

The research entitled ‘Brand Preference of Youth on Buying Soft Drinks’ with the

objective of determining the consumption pattern of youths on soft drinks. The

objective was fulfilled by analysing through inferential statistical analysis like chi-

square and descriptive statistical analysis like bar diagram, pie charts and percentage.

The consumption pattern of youth is determined by the variable like price, occasion

and advertisement. From this study it can be concluded that almost every youth

consume soft drinks frequently. The further research can be conducted by taking more

samples.

The implications for this study are:

 Price of the soft drink should not be increased rapidly as consumer think price

affect purchasing decision.

 Advertisement should be made attractive with the best idea of delivering

message about the product.

 As consumer consumes soft drinks frequently, product should be made

available in every store.

 27

REFERENCES

Agrawal, G.R.(2001). Marketing Management in Nepal, M.K.publisher and

distributor, Kathmandu,Nepal.

Alderson, W.G. Paul E. (1964). Planning and problem solving in

Marketing, Homewood II, Rechard D. Irwin Inc.

Buell, Z.P.(1984). Marketing management, Mc Graw Hill Book

Company, USA.

Coterora, P.R.G, (2001). International marketing, Tata McGraw

Hill New Delhi.

 28

Duglass,J.(1978). Advertising Today, Chicago III, Science Research

Associates.

Hansen, R.W.(2012) An application of marketing concept in the public sector,

Chicago American Marketing Association.

Joshi P.R.(2011). research methodology, 2nd edition, Buddha Academic Enterprises

Pvt. Ltd. Kathmandu.

Klirala, K.D. (1985). Marketing Management, M.K. Publishers

and Distributors, Kathmandu, Nepal.

Kotler, P.(1999).principle of Marketing, 8 edition

Prentice hall of India pvt. Ltd., New Delhi-i 10001

Kotler, P. Marketing Management: Planning Analysis and control,

1980, 4 edition, Englewood cliffs, NJ: Prentice Hall.

Peterson, Robin.(1999). Marketing: A contemporary Introduction, Weley

Hamilton Publication.

.Terry, R(1977). Principles of management, Bombay.

Taraporevala Publishing.
 29

APPENDICES

Appendix-A

Calculation of Chi-square test

Observed frequency Expected frequency Chi-square(O-

Brands (O) (E) E)^2/E
Coco- 1
cola 34 6.67 18.027
1
Pepsi 7 6.67 5.607
1
Sprite 28 6.67 7.707
 30

1
Fanta 15 6.67 0.167
1
Slice 13 6.67 0.807
1
Other 3 6.67 11.207
Total 100   43.520
Source: online survey,2017

Appendix-B

Calculation of chi-square test

Chi-
Expected frequency (
Observed frequency square( O-
E)
Consumption (O) E)^2/E
Daily 21 20 0.05
2-4 times a week 25 20 1.25
More than 4 times a
week 15 20 1.25
Once in a week 32 20 7.2
Other 7 20 8.45
Total 100   18.2

Source: Online survey,2017

APPENDIX-C

Occasional buying habit

Calculation of Chi-square

Observed Expected Chi-square

Particulars frequency(O) frequency ( O-E)^2/E
Festivals 9 16.67 3.527
Party 9 16.67 3.529
 31

Gathering 21 16.67 1.125

Leisure time 8 16.67 4.509
No specific reason 52 16.67 74.878
Other 1 16.67 14.730
Total 100   102.297
Source: online survey, 2017