A

RESEARCH PROPOSAL
ON
UNDERSTANDING THE CONSUMER MINDSET DURING MILK
PURCHASING FROM A MANAGERIAL PROSPECTIVE , PUNE

COURSE NO.:- 104

COURSE CODE:- GC- 04

COURSE NAME:- Business Research Methods

SUBMITTED BY
Mr. Samadhan Landage (P020)
Mr. Balaji Yachawad (H016)
Mr. Prasad Khengare (P018)
Mr. Mahesh Landage (P019)

SUBMITTED TO

Lotus Business School,

Jhambe Road, S.No. 52/53, Old Mumbai - Pune Hwy, Punawale,
Pune- 411033.
(2021-22)
 CONTENT
Sr. No. Name Page No.

1 Introduction

2 Management Problem

3 Research Problem

4 Review of Literature

5 Objectives of the study

6 Hypothesis

7 Scope of the study

8 Importance/ Significance of the study

9 Methodology

10 Data Analysis

11 Budget

INTRODUCTION
Milk is an essential part of the Indian diet. India is the leading producer of dairy products
globally since 1998. Some of the traditional milk products in the country are Paneer (Cottage
Cheese), Butter Milk, Lassi, Yogurt etc. With the changing lifestyle, the consumers demand for
ready-to-consumer products. Hence, there is a shift in the consumer preference in the Indian
milk industry. Some milk products that have been catching up speed in the Indian milk sector
are Flavoured milk, Greek Yogurt, Butter, Cheese etc. Thus, the researcher has decided to
compose a research work on the topic “Understanding the changing trends in Indian (Milk)
Dairy Industry from a managerial perspective- A Case study of Amul Dairy Pune, India” This
chapter has been dedicated to discuss the background of the chosen topic along with the aim,
objective and research questions. The researcher has mentioned the main issue of this research
and described the reason for discussing them as the biggest issue of today. Thus, this chapter is
most significant for this research work.Background of the study
The past decade has seen a rapid increase in dairy product consumption behaviour in several
parts of the world. The main factors projected to further increase demand for dairy products
are growing population, rising real income and changing food habits (Ahmed et al. 2004).
Global milk output is estimated at 843 million tons in 2018, a 2.2% increase from 2017, led by
production expansions in India, Turkey, the European Union, Pakistan, the United States of
America and Argentina, but partially offset by declines in China and Ukraine, among others.
(2018 FAO. India, with 176 million tons, is the world's largest producer of milk, accounting for
18% of world milk production. India's estimated average milk availability per capita is 375
grams per day (NDDB 2017-18). A variety of milk products such as ghee, cheese, butter,
yogurt, ice cream, and paneer are on the market. The consumption of dairy products such as
fresh milk, yogurt, ice cream and powdered milk is influenced by various demographic,
cultural and socio-economic factors (Frank et al. 2007; Bhasin et al. 2009; Davis et al. 2009;
Allen and Goddard 2011). The physical, psychological and social climate of consumers affects
consumer motivations for brand use and how goods are assessed (Solomon 2003). There has
been a growing number of brands of different dairy products in the increasingly emerging
market scenario. As a result, competition has increased among different brands. The need for
through study and examination of consumer behaviour is now becoming more and more
topical. Current situation on a market has put a consumer into the position of major decisive
and leading element of a market. Therefore, the adoption and success of developed marketing
strategies, marketing mix and other marketing programs among consumers strongly depends
on the company’s ability to correctly understand consumer’s needs and expectations as well as
to properly
detect and identify individual factors and stimuli influencing consumers when purchasing
products for the purpose of reaching their satisfaction. Consequently, studying, understanding
and knowing consumers and their behaviour should belong to major and most important tasks
of marketers. Considering this, within following article, we concentrate our attention on
studying consumer behaviour and examining the influence and impact of various factors
affecting consumers when purchasing products. Specifically, at the beginning of the article, we
introduce some general theoretical knowledge on consumer, consumer behaviour and factors
influencing consumer behaviour and then present the review of scientific literature and
outcomes of various research articles, papers, reports and studies related to the issue of our
chosen scientific attention, namely the issue of factors
influencing milk purchase behaviour.
 REVIEW OF LITERATURE

Milk represents one of irreplaceable and most fundamental food ingredients for all
mammals.Since the beginning of the life of every single mammal kind, milk becomes essential
and the only component of food income. Regarding human beings, mother ́s milk is usually a
part of daily food during the first years of baby ́s life and then in the following years of its life
mother ́s life is replaced by milk gained from other mammal species such as cow, sheep, goat,
buffalo or camel. In Slovakia, with the consumption level of more than 98 %, cow ́s milk
represents the top consumed kind of milk, followed by sheep and goat milk. What refers to the
nutrition content (see Figure 1 – Nutritional Composition of Milk), milk is considered to be a
very complex and balanced food (Bartošovičová, 2011). Overall, the content composition of
milk can be divided into five categories, namely proteins, vitamins, minerals, fats and
carbohydrates. We are aware that there exists discussion about the
questionable benefits of cow milk for human body but we deal with this issue rather from
marketing point of view and take milk as a traditional part of Slovak household consumption,
hence we will focus mainly on positive information about its consumption. The most important
nutritional components of milk are proteins. Proteins represent natural substances, consisted
of amino acids, which are important for the construction of tissues in human body, the
execution of body functions and the functioning of body organs (milkfacts.info, 2014). Milk
proteins contains 18 out of 22 essential amino acids that cannot be created by human body
itself and that are inevitable for running of human body; and are divided into two basic
groups, i.e. caseins and whey proteins (Gonda, 2009; The Dairy Council, 2007-2014). Except of
proteins milk is rich in vitamins, namely vitamin A, B (especially B1, B2, B3, B6 and B12), C,
D, E and K. Vitamin A is good for human eyes,immune system and health development of body
tissues; vitamins B1, B2, B3, B6 and ensure transformation of carbohydrates into energy,
functioning of hearth, muscles and nerves and building and maintenance of red blood cells and
health immune system; vitamin C plays important role in building structure and maintaining
blood vessels, white blood cells, cartilage, muscles and bones; vitamin D helps human body
with the absorption of calcium and
phosphorus and is important substance in growing bones and teeth; vitamin E supports the
creation, growth and regeneration of body tissues; vitamin K provides correct blood clotting
(The Dairy Council, 2014). Considering the structure of minerals, milk contains, in significant
quantities, the mineral of calcium, magnesium, phosphorus (substances important for the
development of bones, teeth, cells and muscles), potassium (substance essential for ensuring
fluid balance, supporting muscle contraction and correct
functioning of hearth and nerve system) and sodium (substance inevitable for the regulation of
liquids and the level of ph in human body), and in trace elements, it contains mineral of
copper, iron, manganese, selenium or zinc. Last two essential nutrition components of milk are
carbohydrates (especially lactose) and fats. Lactose is simply a certain kind of sugar presented
in milk and milk. This chapter was on the literature review on the previous research on
understanding the changing mindset of consumer from a managerial perspective in Indian
Dairy Industry. The previous journal includes about the Background of the Indian Dairy,
Consumer Behavior in Indian Dairy, Operations Management, Total Quality Management and
Supply Chain Management. Different journals were critically analyzed. The previous study
also includes the problems face by consumers in the milk and the issues companies face while
distributing the milk. The chapter also included a contrast between current and previous
studies. The study also contains an overview of the discrepancy between the previous research
and the current research. In carrying out their international transactions properly, the chapter
in question failed to find the appropriate approaches important to the states. It is important to
note that marketing strategies refer to the understanding of the price of the products. In
addition, the Indian milk market has become one of the pillars of the main marketing sector.
The consumer decision-making process is important in determining purchase behavior. in
order to offer an effective service, it is important to identify consumer segments, taking into
account the benefits which the consumer seeks. Consumers seek benefits or solutions, not
products (Rowley, 1997). When they buy a product, whether it is a good or a service, they
buy a cluster of product features, but may want only one or two of these features. The main
reason behind consumer’s search is uncertainty. Consumer information search has been the
focus of many articles studying consumer behavior during the last 30 years (Bettman, 1979).
Various studies have provided information about the measures of compulsivity, which helps
in analyzing compulsive buying tendencies of consumers. Faber and O’Guinn T C (1992)
reported a seven-items scale and assessed its reliability and validity. An earlier version 58
The IUP Journal of Marketing Management, Vol. IX, Nos. 1 & 2, 2010 of this scale used a
subset of three items (Faber and O’Guinn, 1989b) while, Faber and O’Guinn (1989a) used a
superset of 15 items to operational compulsivity.
 OBJECTIVES OF THE STUDY

1. To Understanding the Consumer Behaviour While Purchasing Milk.

2. To Determine The Factors Influencing Consumer While Purchasing Milk.

3. To Understand Customer Satisfaction Level On Dairy Products In Maharashtra State.

4. To Analyse The Factors Influencing On Dairy Products.

 Hypotheses development
The main aim of this paper was to examine chosen psychological factors of milk
purchase among Slovaks in connection with their personal factors. Following
main aim, our partial aims were to: (1) specify top motives and barriers of milk
purchase among Slovak consumers and then (2) examine dependencies between
2 variablesbelonging to the group of psychological factors and 4 variables
belonging to the group of personal factors. We focus our research attention on
the identification of the most significant motives (as drivers) leading Slovak
consumers to the milk purchase and the most significant barriers that have not
been properly examined, yet. In addition to this, we aim on verification of
various dependencies between two psychological factors (motives and barriers of
milk consumption) and four (based on the results of above mentioned research
studies and analyses identified as statistically significant factors) personal
factors, i.e. gender (Krešiü et al., 2010; Mannebro, Wallin, 2007; Nagyová et al.,
1998), age (Senadisai et al., 2014; Bonaventure, Umberger, 2012; Alwis et al.,
2009; Mannebro, Wallin, 2007), education (Santoso et al., 2012; Alwis et al.,
2009; Mannebro, Wallin, 2007) and income (Alwis et al, 2009; Mannebro,
Wallin, 2007). In connection to the aims we formulated following hypotheses.
Main hypothesis H: There exists relationship between psychological and
personal factors of milk purchase behavior. Partial hypotheses:
H1: There exists relationship between motives of milk purchase and gender.
H2: There exists relationship between motives of milk purchase and age.
H3: There exists relationship between motives of milk purchase and
education.
H4: There exists relationship between motives of milk purchase and income. H5:
There exists relationship between barriers of milk purchase and gender. H6:
There exists relationship between barriers of milk purchase and age. H7: There
exists relationship between barriers of milk purchase and education. H8: There
exists relationship between barriers of milk purchase and income. For the
purpose of gaining primary descriptive data we availed questioning via online
questionnaire which was
tested in pilot phase and then after minor corrections widely distributed. In the
consumer survey we addressed 1 033 respondents from which 60.79 %
respondents were women and 39.21 % men. Regarding the age structure of
Asked respondents, 18.59 % respondents were 18 25 years old, 23.33 % were 26
35 years old, 19.17 % were 36 45years old, 18.01 % were 46 55 years
old, 10.26 % were 56 65 years old, 4.45 % were 66 75 years old, 5.03 % were 76
85 years old and finally 1.16 % were 86 and more years old. Considering highest
level of education achieved, 4.65 % respondents had elementary education, 9.49
% had high school education without graduation,
36.01 % had high school education with graduation and 49.85 % had university
education. Finally, in terms of the level of monthly disposable income of
respondent ́s household, 4.55 % had income up to 334 €, 12.39 % from 335 550 €,
41.63 % from 551 1 110 €, 27.88 % from 1 111 1 670 € and 13.55 % had income
from 1 671 € and more.
 IMPORTANCE/ SIGNIFICANCE OF THE STUDY
Consumer behaviour plays an important role in marketing management. It
provides information to the marketer on the basis of which the marketer can
design its marketing mix strategies and modify it in future as per the situation.
For the marketer it is important to know how consumers will react to
marketing programme in order to serve them effectively

Importance of study of consumer behaviour can be

explained with the help of following points:
1. Modern Marketing Philosophy:

Modern marketing philosophies include identifying consumers’ needs and

satisfying them more effectively than the competitors. Thus modern marketing
needs to understand consumer behaviour.
2. Goal Achievement:

The key to the company’s survival, profitability, and growth in a highly

competitive marketing environment is its ability to identify and satisfy
consumers unfulfilled needs better and sooner than the competitors. Thus,
consumer behaviour helps in achieving marketing goals.

3. Development of Marketing Programme:

Marketing programme consists of product, price, promotion, and distribution

decisions. The programme can be more relevant if it is based on the study of
consumer behaviour.

4. Improving Marketing Programme Gradually:Since consumer behaviour

studies consumer response pattern on a continuous basis; marketer can easily
come to know the changes taking place in the market. Based on current market
trends, the marketer can make necessary changes in marketing programme to
5. Useful for Middlemen:

The study of consumer behaviour helps the middlemen and salesmen to

perform their tasks effectively in order to meet consumer’s needs and wants
successfully.

6. Predicting Market Trend:

Consumer behaviour can also help in forecasting the future trends. Due to this,
the marketer can prepare its strategies well in advance in order to take
advantage of the emerging opportunities, and/or for facing challenges and
threats.

7. Consumer Differentiation:
Each segment needs different products and a separate marketing programme.
Having knowledge of consumer differentiation is an important key to
formulate different offers which are appealing to different groups of buyers.
Consumer behaviour study provides details about consumer differentiations.

8. Creation and Retention of Consumers:

Marketers who base their offering after recognising consumer needs often find
a ready market for their products and finds it easy to sell its products. Thus
due to continuous study of consumer behaviour and attempts to meet ever-
changing expectations of the buyers, the marketer can retain its consumers for
longer period.

9. Competition:

Consumer behaviour study helps the marketer to gain competitive advantage

since through the study the marketer can offer more competitive products,
based on consumers’ expectations. Thus it helps in improving competitive
strengths of the company.

10. New Product Development:

New product is developed in order to satisfy the needs and wants of the target
market. In order to develop the best-fit product, marketer must have enough
knowledge about the market. Thus, the study of consumer behaviour is the
basis for developing a new product successfully.

11. Dynamic Nature of Market:

Consumer behaviour focuses on dynamic nature of the market. It helps the

marketer to be dynamic, alert, and active in order to satisfy consumers much
better and sooner than competitors.

12. Effective Use of Productive Resources:

The study of consumer behaviour helps the marketer to direct the

Organisational efforts towards consumer-oriented programmes. It ensures
exact use of resources for achieving maximum efficiency.

Consumer’s Perspective on Consumer Behaviour:

In the above discussion we have referred to the consumer behaviour study

from the marketing manager’s and organisation’s point of view. However, the
study of consumer behaviour can take a different perspective when seen
through the consumer’s eye.

i. Consumers are interested in evaluating information provided by marketing

organisations in order to make better product choices.

ii. Consumers are interested in taking buying decisions across a broad range of
brand alternatives in order to select that product and brand which match their
lifestyle.

iii. For consumers, more choices (or competition) among products is viewed as
an opportunity to make a choice and gain from additional alternatives and at
times, at lesser prices or discounts too.

iv. The study of consumer behaviour has not only made them better consumers
but also given rise to the consumer awareness movement. The latter has
helped in the protection of the consumer rights as well as ensured that
organizations do not make false claims about their product or service offerings
and take the consumers for a ride.