THESIS

Pre submission
ON
A Study On Consumer Preferences Towards Milk and Milk Products in

Nellore District
For award of degree of
Masters of Science
In
Dairy Technology
Submitted by
B.Chaithanya Kumar
(18MSDY020)
2020
Under guidance of
Prof. (Dr.) John David
(Dean, WCDT)
Warner college of Dairy Technology
Sam Higginbottom University of Agriculture, Technology and

Sciences
PRAYAGRAJ
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Contents
1. Introduction
2. Justification and objectives
3. Review of literature
4. Research methodology
5. Data Analysis
6. Summary
7. Conclusion
8. References
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Introduction
Over the span of four decades, India has changed from a country of acute milk
shortage to the world’s leading milk producer, with production exceeding 187.7 million
tonnes in 2019. Milk production in India has been increasing steadily over the years from
55.6 million tonnes in 1991-92 to 187,.7 million tonnes in 2018-19, at an average annual
growth rate of 4.5 percent. While the All India per capita availability of milk is 394 grams per
day, it varies between 71 grams per day in Assam to 1120 grams per day in Punjab. This
phenomenal success is attributed to a Government initiative known as Operation Flood
(1970–1996) and its focus on dairy development activities. In the initiative, rural milk shed
areas were linked to urban markets through the development of a network of village
cooperatives for procuring and marketing milk. And milk production and productivity were
enhanced by ensuring the availability of veterinary services, artificial insemination (AI), feed
and farmer education. The investment paid off, promoting production gains of 4–5 percent
per annum.
Dairying has played an important role in strengthening India's rural economy. It has been
recognized as an instrument to bring about socio economic transformation. The vast potential
of dairying in employment generation and poverty alleviation is well recognized. The rain fed
areas, which account for seventy percent of the net cultivated areas of the country, have not
benefited from modern developments in agriculture. Of this seventy percent, about thirty
percent area is under dryland agriculture where annual rainfall is up to 400mm. Small and
marginal farmers and landless labourers, who derive a substantial part of their livelihood
from sale of milk, own about 70 percent of cattle in the rural areas.
Milk and milk products rank as a major secondary source of income to the farmers of the
country. For the country as a whole about twenty percent of the total agricultural income is
derived from the dairying sector. In certain places of the country, the proportion of the farm
earnings from dairy enterprises is more than the national average. Moreover, the industry is
employment oriented as it gives employment to a large number of people. A larger number of
India's population is engaged in the production, processing and marketing of dairy products
and many persons are required to process, bottle and deliver the fluid milk and other dairy
products. Thus, it helps in decreasing the unemployment conditions caused by seasonal
industries and casual opportunities of employment.
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The demand for milk and milk products in the country is on the rise along with the increasing
population and improvement in their standard of living. Nearly forty five percent of the milk
produced in the country is consumed in liquid form and fifty five percent is converted into
various dairy products such as Ghee, Milk Powder, Butter, Yoghurt, Shrikhand etc.
GLOBAL SCENARIO OF DAIRY SECTOR
A steady rise in consumption demand for dairy and allied products has led to higher
levels of technology adoption among the major dairy producing countries in the world. The
global dairy industry is anticipated to clock a turnover worth USD 335.8 billion in 2014.
With a Compound Annual Growth Rate (CAGR) of 5 percent, the industry is expected to
generate revenues worth USD 442.32 billion in 2019. Negatively impacted by the global
economic crisis of 2009; the dairy industry worldwide suffered a major setback. The growth
of milk production dropped below one percent and the demand for dairy products slowed
down significantly during the period. However, the industry is on the path to recovery. Asia
continues to dominate the global dairy market China, India and countries in South East Asia
account for a major portion of the global dairy industry, but milk supply in these regions has
not been able to keep pace with the level of growing demand. This market offers huge
potential for dairy companies that are looking to meet the global demand for dairy products.
Global milk production was estimated at 650 million tonnes in 2013. Overall production is
projected to reach 732 million tonnes in 2019. Apart from a few exceptions in Europe such as
Russia and Ukraine, milk production has increased significantly in almost all the countries
around the world. Cow milk represents nearly 80 percent of global milk production. As
compared to cow milk, buffalo milk is produced in fewer countries; it is estimated that more
than 80 percent of the world's total buffalo milk is produced in India and Pakistan.
DAIRY INDUSTRY IN INDIA
India is the world’s largest producer of dairy products by volume, accounting for
more than 22% of global milk production, and it also has the world’s largest dairy herd. As
the country consumes almost all of its own milk production, India was neither an active
importer nor an exporter of dairy products prior to year 2000.However, since the
implementation of Operation Flood Programme, the situation changed significantly and
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imports of dairy products reduced to very small quantities. From 2001, India has become the
net exporter of dairy products and after 2003 India’s dairy import has dipped while exports
have increased at a fast rate. Yet the country’s share in global dairy trade still remains at
minor levels of 0.3 and 0.4 percent for exports and imports respectively. This is due to the
direct consumption of liquid milk by the producer households as well as the demand for
processed dairy products that has increased with the growth of income levels, which have left
little dairy surplus for export. Nevertheless, India consistently exports special products such
as casein for food processing or pharmaceuticals. The Indian dairy sector is also different
from other dairy producing countries as India places its emphasis on both cattle and buffalo
milk.
MAJOR PLAYERS IN INDIA
The Dairy Product Companies in India consist of both the government organizations
and private companies.
The Leading Dairy Product Companies in India, which are under the control of
different state governments, are generally cooperatives. These cooperatives purchase milk
from the dairy farmers at minimum support price. Then these cooperatives process different
high nutritious milk products. The leading private milk product companies of India are more
into producing and further processing of these milks. Most of the Leading Dairy Product
Companies in India are well equipped to process bulk quantities of cow and buffalo milk.
Further, the technology used by these leading companies of India to process the milk is at
international standards. Furthermore, they strictly stick to international quality manufacturing
and environment safety standards and such that they follow GMP and HACCP. (Good
Manufacturing Practice(GMP)and Hazard Analysis and Critical Control Points
(HACCP)Some of these Leading Dairy Product Companies in India are having state-of-the-
art R&D centres, working on development of quality milk products rich in nutritious value.
India is the largest producer of milk and milk products in the world. However, the country
has recorded the highest number of malnourished children in the world. These Leading Dairy
Product Companies in India are working together with the National Dairy Development
Board (NDDB) towards the elimination of this problem.
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The Leading Dairy Product Companies in India are also working with the National Dairy
Development Board towards educating dairy farmers on producing quality milk, cattle
disease control, cattle feeding, genetic improvement of cattle, vaccination and other allied
education on dairy farming. Major players in the dairy sector with dairy products include
Gujarat Cooperative Milk Marketing Federation (GCMMF) and Nestle are the largest
players. Others include Milk food Limited, SmithKline Beecham Limited, Indian Industries
Limited, H.J. Heinz Limited, Britannia, Cadbury, etc. The packaged milk segment is
dominated by the dairy co– operatives. Gujarat Co – operative Milk Marketing federation
(GCMMF) is the largest player. All other local dairy co–operatives have their local brands
(for e.g. Gokul, Warana in Maharashtra, Sara’s in Rajasthan, and Verka in Punjab, Vijaya in
Andhra Pradesh, Nandini in Karnataka and Aavin in Tamil Nadu, etc.). Other private players
include J. K. Dairy, Heritage Foods, Indian Dairy, Dairy Specialties, etc
CONSUMPTION OF MILK IN INDIA
There is a long history and tradition of high dairy consumptions in India, as

urbanization is an ongoing process there will be a shift from traditional to more commercial
western dairy products as a result of changes in lifestyle. The consumption pattern of dairy
products in India is quite unique as compared to some of the western countries. Consumption
is primarily centred on traditional products; however, westernized products are gradually
gaining momentum in the urban areas. Interestingly, buffalo milk accounts for the largest
share of the total milk produced (55%) in the country. Since the pricing of milk is based on
the fat content, buffalo milk offers higher profit margins as compared to cow milk as it
contains higher fat. Despite being the one of the largest milk producing countries in the
world, India accounts for a negligible share in the worldwide dairy trade.
Consumption pattern
 Fluid Milk - 46.0%
 Ghee (Clarified Butter) - 27.5%
 Buttermilk - 6.5%
 Curd (Yogurt) - 7.0%
 Khoa (dehydrated condensed milk) - 6.5%
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 Milk Powder - 3.5%
 Paneer (Cottage Cheese) - 2.0%
 Other, including cream, ice cream - 1.0%
(Source: National Dairy Development Board Annual report in India-2013)
India is not only a leading milk producer but is also the largest consumer of milk in the
world. According to industry estimates, the Indian dairy consumption market has grown at an
annual rate of 6.8% over the last decade.
DAIRY INDUSTRY IN ANDHRA PRADESH
Andhra Pradesh is the 8th largest State in the country with a geographical area of
162,970 sq km. It accounts for 4.10 per cent of the total population in the country. It has the
2nd longest coastline in the country after Gujarat. Demographically, the sex ratio in the State
has improved from 983 in 2001 to 996 in 2011 which is higher than all India estimate of 943
in 2011. The literacy rate has also improved from 62.07 per cent in 2001 to 67.35 percent in
2011.
In 2016-17, the estimated GSDP at constant prices increased by 11.6 per cent as against the
corresponding 7.1percent growth rate of GDP of India. Despite droughts, the agriculture
exhibited 14.03 per cent sectoral growth rates of GVA surpassing both Industry (10.05 per
cent) and Services sector (10.16 per cent). The Government is encouraging horticulture in a
big way with a target to cover one million farmers in next three years and make Rayalaseema
as a Horticulture hub. Fisheries has been identified as one of the growth engines both as
employment generator and foreign exchange earner. The State ranks 1st in total fish and
shrimp production.
Andhra Pradesh is the first state in India in bringing A.P. Single Window Clearances system
under e-Biz project and ranked 1st in Ease of Doing Business Rankings given by the World
Bank. It is the first State in the country to announce an exclusive state SEZ policy with a
special package of incentives and concessions. From 22.5 million units of power deficit in
June 2014, the state has now become a surplus power state providing 24x7 quality power
supply to all domestic consumers.
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In the year 1971, the state government established a separate dairy development department
as a part of the state Ministry of Food and Agriculture, as the need for milk and supply was
growing largely. The integrated milk project, along with the other dairy units, and the co-
operative dairies were attached to the new organization.
The Andhra Pradesh Dairy Development Cooperative Federation (APDDCF):
The Andhra Pradesh Dairy Development Cooperative Federation (APDDCF), which came
into existence on April 2, 1974, has secured the pride of place among the State co-operatives.
All the dairy units in Andhra Pradesh, including the feed mixing plants under the control of
the government departments, were transferred to the administrative control of this
corporation. At the time of its formation there were 41 dairy units and one milk-producing
factory in the state. During the last two decades there has been a tremendous growth in the
dairy industry.
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The APDDCF is manufacturing milk products such as whole milk powder, baby food and
cheese butter. It has brought a silent economic revolution in the rural areas, creating a new
hope for eliminating poverty and unemployment in rural areas. To bring the white revolution
in the state which is an integral part of the rural development, this corporation has
concentrated more on modem technical inputs like, quality of cross breed cattle, better quality
of feed, etc., in order to increase the production of milk.
cooperative societies in each district come under district cooperative federation.
District Cooperative Federations:
The following are the existing district dairy development cooperative federations in Andhra
Pradesh.
1. Kurnool District Dairy Dev. Coop Federation.
2. Ongole District Dairy Dev. Coop Federation.
3. Vizag District Dairy Dev. Coop Federation.
4. Chittoor District Dairy Dev. Coop Federation
5. Nellore District Dairy Dev. Coop Federation.
6. Guntur District Dairy Dev. Coop Federation.
7. Krishna District Dairy Dev. Coop Federation.
Nellore District
The name of Nellore district has been changed as Sri Potti Sriramulu Nellore District on 4th
June, 2008. SPSR Nellore District is one of the nine Coastal districts of Andhra Pradesh and
it is the Southern most one. It lies between 13 o25’ and 15o 55’ N of the Northern Latitude and
79o 9’ and 80o 14’ of the Eastern Longitude. It spreads over an area of 13,076 Sq. Kilometres
and these accounts for 4.75% of total area of the Andhra Pradesh State.
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The geographical, topographic and demographic features besides other socio economic
aspects of S.P.S Nellore District are delineated here under.
BOUNDARIES OF THE DISTRICT

The district is bounded by the following places and features on all the four sides.
East : Bay of Bengal
West : Veligonda Hills which separately it from Kadapa district
North : Prakasam District
South : Chittoor District and Tamilnadu
1. ADMINISTRATIVE DIVISIONS:
There are 5 Revenue Divisions with headquarters at Kavali, Nellore,Gudur, Atmakur
and Naidupet. 46 Revenue Mandals with equal number of Mandal Parishads are also existing
in the District. A total of 940 Gram Panchayats are in position comprising all notified Gram
Panchayats.
There is 1 Municipal Corporation at Nellore, 5 Municipalities at Kavali, Gudur, Venkatagiri,
Atmakur and Sullurpet and One Nagar Panchayat at Naidupet.
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2. DEMOGRAPHY:
The total area of the district is 13,076 Sq.Kms. The total population of the district as
per 2011 population census is 29.64 lakhs. Out of this, the rural and urban populations are
21.06 lakhs and 8.58 lakhs respectively forming 71.06 % and 28.94% of total population. The
density of population is 227 per Sq.km. The population of females per 1000 males is 985.
The population covered under Scheduled Castes and Scheduled Tribe communities is 6.66
Lakhs and 2.86 Lakhs respectively. The decennial growth rate is registered at 11.05%
whereas the density of population per Sq.Km has been increased from 204 to 227 in the
period 2001-2011.
As regards the working population of the district, there are as many as 10.76 lakhs main
workers out of the total population of 29.64 Lakhs. The balance being the non-workers to an
extent of 16.49 lakhs. The main workers and marginal workers form 80.2% and 19.8%
respectively out of the total work force.
LAND UTILISATION:
The total geographical area of the district is 13.07 lakh hectares. Out of this, 20.80%
of the area is covered by forests. The rest is distributed among Barren and Uncultivable land
and Land Put to Non-Agricultural Uses which constitute 6.30% and 23.50% of the
geographical area respectively. The Net area sown forms 25.50% of the total geographical
area while the cultivable waste, fallow lands, permanent pastures and miscellaneous tree
crops constitute 23.90%.
3. NATURAL RESOURCES:
A. RIVERS :
The Principal Rivers are Pennar and Swarnamukhi. The other streams are Kandaleru
and Boggeru which are occasionally torrential in Character during rainy season. The rivers
and rivulets remain dry for major part of the year and carry floods during rainy season.
Pennar river is the most important one and flows for about 112 Kms in the district which
serve as a boon to the eastern half of the taluks of Nellore and Kovur. Two anicuts are
situated one at Sangam and the other at Nellore.
B. SOIL TYPES :
The soils of the district are classified as black, red and sandy. The red soil is
predominant with 40% of the area in the district whereas a belt of sand runs along the sea
coast. The black cotton soil and sandy loams occupy 23% and 34% of the area respectively.
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C. FLORA AND FAUNA:
As much as 20.80% of the total area of the district is occupied by forest. But all the
forests are not productive. Class I forests which are being under scientific management for a
long time past registered good growth.
Dairy Development
One of the important and progressing Dairy Cooperatives in Andhra Pradesh is
Nellore Cooperative Dairy called Nellore District Milk Producers’ Cooperative Union Ltd.
The Nellore dairy was started in 1969 with an initial capacity of 12,000 liters per day mostly
to collect milk from surrounding villages. Later, the handling capacity was expanded to
40,000 liters per day during the year 1979. In 2014, there were 60 milk routes, 151 Milk
Producers’ Cooperative Societies, 321 Milk Collection Centers covering 861 villages in the
district. On the average, there are 25 members in each Society and hence the total members in
all the 151 Societies aggregated to 3775. During the flesh season 40,000 liter of milk per day
is collected and during the lean season it goes down to 15,000 liters per day. There are 6 milk
chilling centers located at Kavali, Adurupalli, Duttalur, Venkatagiri, Nellore Pallem and
Doravari Chatram with chilling capacity of 5000 liters each besides the main plant at
Nellore.
Consumer Behaviour
The changing income demographics, age profile and macro - environment are visible in the
growth in consumption of products. Customers, themselves are changing, natural customer
loyalty_ is a thing of past. Higher business risk owing to dynamism in customer's
expectation, innovative strategies by the competitors and other macro level changes demand
the contemporary managers to be strategic with regard to maintaining profitable customer
relationship through product and process design, pricing, product mix and distribution
decisions. It becomes very important for the marketing managers to study the behaviour of
the target customers in a systematic way.
Generally speaking, behaviour is the response to stimuli. For a consumer, the usual stimulus
is a product - anything that possesses want satisfying capability. In simple words, consumer
behaviour can be defined as the set of activities and actions of consumer in purchasing and
using goods and services. However, it involves a study of buying motives in order to examine
the selection criteria of the consumers for the products they choose and what motivates them
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to behave as they do in the market places. Consumer behaviour focuses on how individuals
make decisions to spend their available resources like time, money and effort on consumption
related items.
Market
Marketing of commodities has occupied such an important place these days in the
entire process and fabric of production that it has become a backbone of any business and in
the absence of which the whole endeavour and industry would become futile and the
industrial life would come to a standstill. It is, therefore, considered not only a science but an
art as industry well upon the successful execution of which depend on the success and
prosperity of the. Entrepreneurs in almost all the countries of the world, therefore, pay much
attention to the art of marketing for making enormous dividends.
Marketing of dairy industry products has recently invited the attention of all those who are
directly or indirectly involved in this industry. Dairy industry products include milk, butter,
ghee, milk powder, cheese, cream, shrikhand etc. and constitute an essential diet in the daily
meals of the people. Marketing of dairy industry products therefore, attracts the sights of the
producers to combat the diagonally increasing demand for their products by consumers and
the problems in the field of dairy industry products. Almost all the dairy industry products are
largely consumed by the higher class and the middle class people these days.
Dairy industry is one of the fastest growing industries in India. After the delicensing of the
dairy industry under the new industrial policy, many corporate bodies are planning large
investments in the sector. This is expected to provide a major boost to the production of dairy
products in the state and ultimately the stiff competition in marketing among the dairy
industries.
The marketing of dairy industry products in a useful way and scientific lines is still vexed
with complicated problems in spite of the fact that it has assumed greater importance since
the middle of the present century owing to the greater demand for them, better means of
transportation, easy production with little investment and sizable amount of profits. With the
change in the nature of the dairy industry the art of marketing has acquired added
significance.
Dairy has a lot of potential to improve rural incomes, nutrition and women empowerment,
and hence is a very critical area for investment and research. A well-developed industry will
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enable millions of farmers to capitalize on the emerging opportunities and make a significant
impact on rural incomes. On the flip side, weak efforts towards dairy development also can
have a significant but negative impact on the dairy industry. The growth rate has been
sluggish over the past few years. With an increase in demand on one hand and sluggish
supply on the other, there is a likely shortfall in demand in the coming years.
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Justification
In India Agriculture farming is not stable with price fluctuations in the market,
improper climatic conditions affect the income of farmers badly. Thus, dairying plays an
important role as a standard source of income to farmers and it became part of their lives.
Indian dairy sector contributes the largest percentage of share in agricultural gross domestic
products. India is the world's largest producer of milk, with 22% of global production in
2018. If the milk is not properly marketed or sold as equal to the growth of milk production
the demand of milk decreases and the price of milk goes down. If this situation arises the
most affected people will be farmers. Unless we know the preferences of consumers, we
cannot increase the demand of milk. Therefore, present study is aimed to study the consumer
preferences towards milk and milk products in Nellore district of Andhra Pradesh.
An online survey was conducted on 150 residents of Nellore district. The survey was
conducted randomly in urban areas of Nellore district. The survey consists of consumer’s
demographics, consumer’s buying patterns and their preferences for purchasing products and
finally satisfaction levels towards products. The present study selected milk and also popular
milk products which are consumed regularly like curd and ghee.
Objectives
1. To examine the consumer preferences and patterns in purchasing milk and milk products.
2. To study the consumer motivation for purchasing milk and milk products.
3. To identify the preferences of consumer on milk and milk products.
4. To study the satisfaction level of various attributes in milk and milk products.
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Review of literature
A review of literature is designed to identify related research, to set the current
research work within a conceptual and theoretical context. Review of literature is the
important step in a research work, which has to be done adequately in order to reveal the
significance of the study. In this chapter a detailed review of literature has been done by
reviewing the previous studies relating to the core area of the research. These studies have
been taken from published journals, articles and Ph.D. thesis.
Anandan et al. (2007) studied that, majority of the respondents will buy another brand if
preferred brand is not available, few per cent of the respondents will go to the nearby town
for buying the preferred brand. Fifteen per cent of the respondents will postpone their
purchase decision. It was revealed from the study that customers cannot postpone the
decision of buying the detergents, as it was one of the essential commodities.
Babu and Verma (2010) has analysed the value chains of milk and milk products in the co-
operative and private dairy plants in the Salem district of Tamil Nadu based on the data
collected from one cooperative plant, one private plant, five milk transportation routes, ten
cooperative societies, ten private milk collection centres and six chilling 100 centre’s for the
year 2007-08. The overall average procurement cost per litre of milk has been found higher
for the co-operative dairy plant than the private plant due to increased cost on milk
transportation, chilling and reception. The co-operative plant has been revealed more efficient
in the manufacture of toned milk, standardized milk, full cream milk and ghee whereas the
private plant has an edge over co-operative dairy plant in the manufacture of butter and SMP
(skimmed milk powder). The marketing cost of toned milk, standardized milk, full cream
milk and SMP has been found lower for private dairy plant and of butter and ghee for the co-
operative dairy plant. The products which could earn a higher value after passing through the
value chain are milk peda, khoa and SMP in the co-operative plant; and ice-cream, Mysorepa
and ghee in the private plant. The marketing margins and marketing efficiency have been
found higher in toned milk, standardized milk and butter for the private plant and in full
cream milk, ghee and SMP for the co-operative plant. The study has revealed that dairy
industry in India has gone through a sea of change, transforming itself from import-dependent
industry to a self-reliant industry. The success of dairy industry revolves around a triangle,
viz. procurement, processing and marketing of dairy products. Production is the base on
which the edifice of dairy industry stands. Procurement, processing and marketing are the
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other aspects that need to be strengthened for the healthier growth of the dairy industry to
serve the consumers so that economic multiplier effects of dairying are realized.
Ganguly and Gopal (1981) in their study on Metropolitan milk markets of India revealed
that in Bombay and Calcutta 75 percent of milk was bought by households with low or
moderate income but in Delhi and Madras almost half of the milk was purchased by high-
income households. In Delhi and mumbai, the average household devoted 17 percent of its
expenditure to milk products. It appeared that milk and milk products are more important to
the people of Delhi and Bombay, as 95 percent of all the households interviewed in these
cities bought milk regularly. The modern dairies share in the liquid milk market had
increased presumably because the modern dairies charged 40 percent less than the traditional
sector for their milk.
Goswami (1994) examined the consumption pattern of milk and milk products of five district
income groups in Shillong town of Meghalaya state with a sample of 200 households drawn
from 20 wards. It was observed that with the increase in income, the expenditure on milk and
milk products had also increased. Among the various milk items, per capita expenditure was
maximum on fluid milk for all the income groups. Linear, Semi-Log and Log-Linear forms of
Engel function were found to be best fit for explaining the consumer behaviour of various
income groups with respect to milk and milk products consumption. It was found that a wide
variation was dissemble in the consumption pattern of milk and milk products across
different income groups. The demand for various milk items was observed to be expenditure
elastic for all the income groups. All respondents expressed that butter and ghee and other
milk products as luxury items.
Jain and Sharma (1999) conducted a study on consumer opinion for purchase of milk and
milk products by collecting data from 300 sample households in Chandigarh city, 150 in a
town of Rohtak district and 100 in two villages of Rohtak district (Northern India) and
similar data from city, town and village households in Bangalore and Mandya district
(Southern district). Sources of Purchase for milk and milk products, consumer’s preference
for different sources, factors influencing purchase choice and reasons for not consuming milk
of the organized sector and its preference by consumers in the southern region than in the
northern one, especially in urban area were examined. Price was an important factor
influencing purchases in the southern region but was less important in the northern region.
However, consumers in both regions did not purchase expensive products.
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Kashyap (2000) in his study entitled "Rural People look upto urbanities" examined and
revealed that urban buyer behaviour is Individual-driven where as in rural areas, decision
making was a collective process. Rural buying process may start from the village headman
who represents the pinnacle of the collective decision makers. He also observes that rural
buyers take a long time to decide on a particular brand, but once they were convinced, their
brand loyalty was more than their urban counterparts. It is an urban myth that rural people
don't buy quality goods. Rural buyers were equally quality conscious, but value for money
was paramount importance and functionality of the product, rather than the frills attached to
the product.
Klaus et al. (2000) in their study argues that consumer quality perception of dairy product is
characterized by four major dimensions: hedonic, health – related, convenience – related and
process-related quality. Two of these viz., health and process related quality, are credence
dimensions, i.e. a matter of consumer trust in communication provided. Drawing on five
different empirical studies on consumer quality perception of dairy products, three issues
related to the communication on credence quality dimensions are discussed: Providing
credible information, the role of consumer attitudes, and inference processes in quality
perception. Organic products, functional products and products involving genetic
modification are used as examples.
Kubendran and Vanniarajan (2005) studied that the change in consumption pattern was
due to changes in food habits. If income and urbanization increase among consumers, the
percentage of income spent on consumption increased. The urban consumer’s preferred
mostly branded products compared to rural consumers. The most significant factors
influencing buying decisions were accessibility, quality, regular supply, door delivery and the
mode of payment.
Kumar (2003) in his study titled "A study of the Consumer Behaviour with reference to
selected products" observed that the marketers should take efforts to supply quality goods at
reasonable prices and maintain good relations with their retailers, because consumers trust
more on retailer's advice. Moreover, marketing distribution system should also be well
established.
Magnusson et al., (2001), in his study with respect to Swedish consumers, found that
maximum number of consumers has positive attitude towards organic food products but the
purchase level remains at low. Consumers opined that the main reason for buying organic
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was the taste rather than health conscious. Consumers are satisfied with the availability, taste,
quality of the product. At the end consumers has said that premium price is the only barrier
for purchasing organic food products.
Mathur (2008) in his article “Prospects for Product Diversification for the Dairy Industry in
India”, has analyzed that the consumers are demanding dairy foods with more nutrition
without sacrificing taste and enjoyment. With new product development dairy has assumed
special significance and demands concerted efforts of chemists, technologist and nutritionist.
For orchestrating, further growth of Dairy Industry in the liberalized global economies,
strategic planning is needed for product diversification at competitive prices for the domestic
and export markets. India has to confront important challenges that envisage clean milk
production, adoption of cost effectiveness, 98 energy efficiency eco-friendly technologies for
milk production and processing, development of eco-friendly/cost effective packing systems,
good manufacturing practices to meet international norms, food safety, government
legislation, effective management of resources and energy, proper disposal of industrial
wastes and customer services.
Munusamy and Hoo (2008) investigated the relationship between marketing mix strategy
and consumer motives at major stores in Malaysia. A quantitative approach was used on the
private labelled fast moving consumer products. A convenience sample of 120 respondents
was surveyed using a structured questionnaire. A simple regression analysis was conducted to
test the relationship between the 4P’s and consumer motives. The study found that only the
pricing strategy has a positive impact on consumer motives, while the promotion strategy has
a significant negative impact on consumer motives. The product and place strategies do not
influence consumer motives. These findings suggest that consumers do not look for product
characteristics and store location when buying private labelled fast-moving consumer
products.
Mitsostergios and Skiadas (1994) in their study, revealed that food purchasing behaviour is
influenced by economic factors such as price and income, as well as by non-economic factors
such as concern about diet and health, growth of vegetarianism, convenience, household's life
cycle and advertising. The concern about health of consumer's strong advertising campaigns,
as well as the age and economic status of respondents, influence consumer choice towards
fresh pasteurized milk.
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Naghapani (1996) conducted a study on the marketing aspects with special reference to
Coimbatore district co-operative milk producer’s union Limited. The study revealed that the
reason for low procurement in the areas of Shanmughapuram and Sultanpet chilling centre’s
was due to the competition in procurement from private dairies. The sale of milk in 500 ml
sachet was found to be high. Revenue from sale of liquid milk was more than the sale of milk
products.
Prasad (2006) found in his study that 91.33% of the consumers knew the availability of more
than one variety of milk available in the market. He also established that a large majority of
respondents said that it is the quality that influences the choice of the brand, whereas a
meagre respondent are expressed the view that it is the factor of easy availability that is
responsible for the preference of a brand. He found that a majority of the respondents were
satisfied with the present brand they were using and only few respondents are thought
otherwise. He further suggested that prompt and regular supply, providing value by way of
service rendered by agents and avoidance of adulteration are factors that will count in the
success or failure of the milk producers.
Rama Prasad (2004) the researcher investigated on ‘Consumer Preferences in Dairy

Industry with Special reference to Vishakhapatnam District’. The study has been organized
on a sample of 300 households of families and 100 agents. The study found that Quality plays
an 80 important role in influencing the preferences of consumers regarding selection of a
brand. It was found in the study majority of the consumers are buying milk at agent’s milk
booth. The researcher examines in this study most consumers buying decisions are influenced
by the preferences they have about the product. The milk product image is formed out of the
knowledge the consumers have about the products such as price, quality, availability,
accessibility, etc. So the manufacturers have to produce the product with all the above
requirements.
Rubaina (2010) undertook a research on the customer preference towards dairy products.
The objective of the study was to identify the customer’s preference towards dairy products
and to know about the factors which influence the selection of different brands of dairy
products. The study revealed that the company should make survey to know the expectations
of the consumers and produce that product in the manner so as to attract more customers
towards their brand and advertisement can be done through mass media to increase sales and
to educate customers about the product.
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Rajendran and Samarendu Mohanty in their study made an attempt to review the existing
status of milk marketing and dairy co-operatives in India. The results of the study indicated
that 80 percent of the milk produced by the rural producers is handled by an unorganized
sector and the remaining 20 percent is handled by an organized sector. The major constraint
in milk marketing is the involvement of the unorganized sector. Involvement of
intermediaries, lack of bargaining power by the producers, lack of infrastructure facilities for
collection, storage, transportation, and processing are the major constraints which affect the
prices received by producers in milk marketing. Producers are not receiving a remunerative
price for their produce because of the presence of middlemen in milk marketing. By reducing
the number of middlemen between producer and consumer, the consumers’ share to the
producer can be increased. Milk quality, product development, infrastructure support
development, and global marketing are found to be future challenges of Indian milk
marketing. These challenges could be overcome by strengthening the dairy co-operatives.
Rani (1995) examined the consumption pattern for the selected livestock products (Milk,
Meat and Eggs) among different income groups in Madras city by selecting random sample
of 300 households from 12 divisions of Madras city. It was observed that the quantity of milk
utilized per consumption unit per day increased as income increased. The awareness of
consumers about various milk products like standardized milk, toned milk and double toned
milk, yoghurt and skim milk powder increased as the income increased. The preferences of
the households were more for toned milk in all income groups. Semi Log functional analysis
revealed that family size, monthly income and educational level of the head of the households
significantly influenced the milk consumption. The vegetarian habit also significantly
influenced the milk consumption levels.
Rees (1992) investigated the factors influencing the consumer’s choice of food and found as
flavour, texture, appearance, advertising, a reduction in traditional cooking, fragmentation of
family means and an increase in ‘snacking’ etc. Demographic and household role changes
and the introduction of microwave ovens had produced changes in eating habits. Vigorous
sale of chilled and other prepared foods was related to the large numbers of working wives
and single people, who require value convenience. Development in retailing with
concentration of 80per cent of food sales in supermarkets was also considered to be
important. Consumers were responding to messages about safety and healthy eating. They
were concerned about the way in which food was produced and want safe, ‘natural’, high
quality food at an appropriate price.
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Senthikumar et al. (2007) observed that the upsurge in milk production has thrown up
unprecedented challenges in milk & milk products’ marketing. Changes in demographic
pattern, education, income structure, lifestyle, changing aspirations, cultural orientation,
increasing awareness about nutritive value, changes in consumer behaviour, introduction of
new technologies, new expectations of consumers and other such factors influence the
demand for milk & milk products. In India, inequalities exist within the expenditure pattern
of milk and milk products across various regions and also among different incomes and
occupational groups
Shanthi (1987) studied consumer preference for `Aavin' milk and its products in Royapettah
and Mylapore. It was found that good quality coupled with the price was the main reason for
consumer preference for milk and milk products. Correct weight and convenience found the
second place and third place with hygiene coming next. The quantity of milk purchase
increased with the increase in the size of the family. It was also found that consumption of
Aavin milk did not increase with increase in income.
Sharma and Joglekar (2002) in their study on "Marketing of Milk- an opinion survey of
consumers perception in Rajamundry, Andhra Pradesh" included a cross section of
consumers covering the area of the Godhavari Co-operative dairy with the sample size of 400
households. The study found that the majority of the families were purchasing milk from
private vendors. The location of the milk booths was close to residence or located within a
reasonable distance. The supply of milk through polyethylene sachets by home delivery was
advantageous. The quality of the milk was primarily judged on the basis of level of fat
content in milk. Families belonging to lower income groups strongly expressed their
preference to private vendors due to non-availability of milk in small packing less than half a
litre.
Sharma (2000) conducted an opinion survey in Andhra Pradesh regarding the consumer
perception and attitude towards the different sources of milk purchase. It revealed that a
majority of the families purchase milk from private vendors due to non-availability of Dairy
milk within the reasonable distance from the consumer’s residence. Several households
reported that the housewives are unable to collect the milk in person from the milk booths as
it involves time and energy and they are forced to employ servants for collection of milk from
the booths, which involves additional cost and delay. Further, they also expressed
dissatisfaction with the milk supply from the booths and suggested home delivery. Nearly, 60
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percent of the families felt that the home delivery of milk in polythene sachets is
advantageous and indicated willingness to pay additional costs/service charges for the same.
Other reason found for household preference to private vendor was non-availability of milk
in small packing of less than half litre with the Dairy as several small families and those
belonging to lower income groups strongly felt that such facility is essential to enable them to
purchase the Dairy milk. Results found strong correlation between income and proportion of
home delivered milk.
Singh and Singh (1994) in their study on the pattern of milk consumption in urban and rural
areas of Ludhiana district in Punjab, found that the direct consumption of milk was more in
rural than in urban areas. The percentage share of domestic consumption was higher in
summer seasons as compared to winter season both in urban and rural areas.
Srikanth Reddy and Vasudev (2006) studied and an attempt has been made to quantify the
level of consumption, production, and marketed surplus of milk in Karimnagar district of
Andhra Pradesh. Better feeding followed by congenial weather conditions during the winter
has positive effect on milk production. It was also interesting to note that in relative terms
marketed surplus was more in summer (ranging from 58.5 percent to 60 percent) compared to
that in rainy season (50 percent to 56 percent). On an average marketed surplus during the
year ranged between 55percent in the case of small farmers to 57.2 percent in the case of
medium farmers. But in all the categories of farmers the consumption of milk was above
recommended level i.e., 250 gm/day/person. With the disposal of marketed surplus of milk
through different agencies it was evident that the co-operatives and milk vendors emerge as
major procurement agencies (more than 70 percent) in all categories of farmers. Majority of
the small and medium farmers preferred milk vendors while large farmers preferred milk co-
operatives to sell their surplus milk. The large family size, education level of family had
influenced the consumption pattern of milk. These lead to consume more, resulting in
shrinkage of marketed surplus.
Subramanyam et al.(1982) studied the consumer opinion on purchase of dairy products in

Visakhapatnam and they found that a large number of consumers were preferring to purchase
the consumer products including groceries and dairy products from the private retail shops
which are followed by super bazar and consumer co-operatives.
Sandeep et al. (2007) argued that consumers are not homogeneous; the consumption pattern
of milk like quantum of purchase, mode of purchase, source of purchase, and brand
23 | P a g e
preference etc. is continually varying. They suggested to dairy companies to spend lot of
effort on advertising and other promotional activities. Further suggested to strengthen their
supply chain and other logistics and use intermediaries to promote and make their products
available to the end consumer. They found freshness, quality, taste, variety and convenience
as strong factors that consumers are looking for while purchasing dairy products. They found
socio-economic profile of the consumers such as income status, occupational position,
educational level, age and region as major determinants of the consumption patterns of milk.
Singh et al. (1995) examined the factors influencing consumer preferences for milk. They
were milk quality, convenient, availability, and supply in quantity desired, flavour, colour,
freshness and mode of payment which showed higher levels of consumer satisfaction. The
results revealed that majority of the consumers were seeking the information from television
regarding the products availability and this was followed by neighbours’ and newspapers.
Consumers preferred retail market for the purchase of groceries, milk and milk products,
vegetables, fruits and snacks and they adopted cash payment. Majority of the consumers
preferred quality.
Srinivasan (2000) revealed that, consumer with higher educational level was found to
consume more processed products. The quantities of processed fruit and vegetable products
were consumed more in high income group. The tolerance limit of price increase identified
was less than 5 per cent, any price change above this limit, would result in discontinuance of
the use of the processed product. Consumers preferred processed products because of
convenience of ready-to-eat form. purchase of food and milk.
Venkateswaran et al. (2011) in their research article ‘‘A Study on Customers’ Brand
Preference of Selective Household Brands at Dindigul, Tamil Nadu’ stated that consumers
prefer a particular brand based on what benefits that brand can offer to them. They observed
that in forming the tendency of customer to prefer a particular brand, the marketing variables
like advertising, quality of the product, brand name and brand image plays an essential role.
Vaswani (2008) in his article “Promoting Value Added Traditional Dairy Products –
Alternative Business Models”, has found that there is immense scope for the Indian dairy
industry to develop the market for indigenous dairy-based sweetmeats by offering a range of
value added products that address evolving nutritional and lifestyle needs of customers.
However, traditional dairy product market is difficult to service because of highly diversified
portfolio of products and their variants, regional tastes and preferences, immature
24 | P a g e
technologies, and uneven pattern of demand and consumption. Near absence of regulatory
regime on the ground leading to unfair competition, also acts as a deterrent for the entry of
organized sector into this segment. However, emerging trends relating to consumer 99
purchases in food and beverages with focus on nutritious and quality products offer new
opportunities to manufacturers. Further, analysis of each business model reveals business
opportunities which exist for market development of traditional dairy product segment.
Understanding which drivers fit which business model is crucial for successful and
systematic implementation of a process. These drivers will allow the dairy industry to
leverage off their market power and sustain growth of dairy industry in India.
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RESEARCH METHODOLOGY
The literature review has clearly indicated that to study consumer behaviour in purchasing
dairy products, the important variables that need extensive attention are consumer perceptions,
influences, preferences and motivations that vary greatly due to various demographics and psycho-
sociological factors. Though dairy industry is a backbone for the social and economic development of
India, limited research was carried out to improve the market potential for dairy products.
Hence, this study focuses on understanding consumer of dairy products, which is important
for dairy firms and government in the present Indian scenario to design effective marketing
strategies. The skeleton structure of the present study is presented in this chapter, covering the
research objectives. Further, this chapter attempts to make a brief note on the statistical tools used in
the analysis. Finally, the organization of the thesis is discussed in detail.
SIGNIFICANCE OF THE STUDY
The relevance and importance of understanding the consumer behaviour is rooted in

the marketing concept. The marketing programmers’ and policies depend upon the consumer
behaviour which is imperative to survive in the market. A careful study of consumer
behaviour will facilitate the marketer in determining the various expectations of the consumer
that acts as input in designing marketing strategies. As consumer behaviour is dynamic and
keep on changing over period of time, it is necessary to continuously study, analyse and
understand the target consumers to take effective decisions with respect to marketing mix
elements i.e., product, price, promotion and distribution. Hence, it is a must for business
organizations to understand the behaviour of consumers to survive in the market. Though
dairy industry is having important role in the Indian national economic development and
having good market share to capture, marketing was not given significant importance. The
entry of foreign players in the dairy market demands more professional approach in
marketing dairy products which was absent in majority of the dairy companies. This study
helps to gain knowledge about the various influences and perceptions of the consumer in
purchasing dairy products, which in turn facilitates the dairy companies in designing
appropriate marketing strategies.
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Need for the Study
The consumer motives, perceptions, preferences, patterns of purchasing and

influences differ from product to product. So the marketers in each type of industry have to
study consumer behaviour according to their problems on hand. Understanding the consumer
behaviour in dairy products is very essential for the decision makers and marketers to
promote their products in the present competitive scenario.
From the researchers’ point of view, there is a need to study consumer behaviour in dairy
products which is relatively unexplored in the context of growing competition. Entry of new
companies, emerging new products, design of new strategies in dairy industry creates a need
to study the consumer behaviour.
The commencement of the National sample survey organization (NSSO) in 2010 catalysed
some studies related to marketing and production of dairy products. Most of these studies
have mainly been directed at estimating cost and income elasticity of certain dairy products,
and the qualitative aspect of consumer behaviour has been almost disregarded. Moreover,
there is scarcely specific study in recent years in Nellore district on the consumer behaviour
related to dairy products. Hence, a demure trial is made in the present study in this direction.
Research area of the study
The present study is confined to a detailed enquiry of consumer preferences for milk
and milk products in Nellore district of Andhra Pradesh.
RESEARCH OBJECTIVES
The study of consumer behaviour is the attempt to understand and foretell human
actions in buying process. Consumer behaviour surrounds an immense area comprising of
consumer motivation, preferences, purchasing patterns and influencing factors etc. Thus, the
study of consumer behaviour concentrates an answering to these questions, “why, when,
where, what and how do the consumers buy”
The preceding literature review revealed various factors that influence the consumer and
various practices followed by the dairy companies to boost their sales. The research gap
identified act as base for designing the objectives of the present study. To conduct an in-depth
and comprehensive study on consumer preferences towards milk and milk products in
Nellore district.
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The following four objectives were framed.
1. To examine the consumer preferences and patterns in purchasing milk and milk products.
2. To study the consumer motivation for purchasing milk and milk products.
3. To identify the influencing factors in buying milk and milk products.
4. To study the satisfaction level of various attributes in milk and milk products.
DATA COLLECTION
The study falls under both exploratory and descriptive research, and adopted survey
method for exploring consumer purchasing patterns, buying motivation, and buying
influences.
The data for the study was collected from consumers of dairy products during April
2020 to August 2020.
To accomplish the objectives, the required data were collected from the respondents
by the online survey through google forms, the respondents were randomly selected
throughout the district. The survey consists of two section one section consists of general
information and other section consist specific information.
The general information collected includes
1. Name of the respondent

2. Age
3. Gender
4. Education
5. Occupation
6. Mode of residence
7. Marital status
8. Number of family members
9. Income of family
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10. Food habits
The specific information includes consist of the information regarding the consumer
behaviour pattern.
1. Type of milk preferred

2. The frequency of purchasing milk and milk products
3. Quantity of milk
4. Motivation for buying milk and milk products
5. Importance of brand in purchasing milk and milk products
6. Preferred mode of buying the milk and milk products
7. Ease of availability of milk and milk products
8. Preferred mode of packing
9. Importance of brand preference
10. Satisfaction levels
LIMITATIONS OF THE STUDY
Any study based on the consumer survey through a predesigned questionnaire suffers
from the basic limitation of the possibility of difference between what is recorded and what is
truth, no matter how carefully the questionnaire has been designed and field study has been
conducted.
The major limitations of the present study were listed as follows:
 The study is limited to three revenue divisions i.e. Nellore, gudur and kavali of
Nellore district.
 The sample are collected randomly in all three divisions.
 The sample taken may be inadequate to throw accurate figure on the consumer
acceptability.
 Evaluation is based on the primary data gathered through questionnaire and accuracy
of the findings entirely depends on the accuracy of the responses given by the
customers.
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 The consumers were very reluctant to answer the questionnaire and the response
collected may not be free from biased information.
 The survey is conducted online so the most of the respondents will require the mobile/
computer and active internet connection, which is not available to all the consumers.
Data Analysis
In this chapter an attempt has been made to identify the existing consumption pattern and
buying behaviour of milk and milk products consumers in Nellore District. The primary data
were collected from 150 sample respondents and the data were arranged in simple tabular
form. The data thus collected were analysed with the help of various statistical tools. The
detailed results and discussions are shown in the following sections.
5.2 Demographics of the respondents
The demographic of the respondents include
1. Name of the respondent

2. Age
3. Gender
4. Education
5. Occupation
6. Mode of residence
7. Marital status
8. Number of family members
9. Income of family
10. Food habits
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5.2.1 Age
The age of the respondents was recorded into groups such as ‘Below 18’, ‘18 – 25’,
’25-40 years’ and 40 years above. The maximum number of respondents falls in the age
group of ‘18-25’ (86.7%) and the minimum number of respondents was found in the age
group ‘40 years above’ (2%).
Table No: 5.1
Age group of Respondents
Age group Number of Percentage

(Years) respondents
Below 18 5 3.3%
18 - 25 130 86.7%
25-40 12 8%
40 above 03 2%
Total 150 100%
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5.2.2 Gender
The final sample (N=150) was composed of 82 males (54.7%) and 68 females (46.3
%) . The major respondents are in male group. All the respondents shared their gender.
Table: 5.2
Gender group of respondents
Gender Number of Percentage

respondents
Male 82 54.7%
Female 68 46.3%
Total 150 100%
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5.2.3 Education
With regard to the educational qualifications of the respondents, most of them i.e. 139
(92.7 %) are having high education i.e. graduation and above, 10 respondents (6.7%) are
completed Secondary school and 1 respondent is Primary School (0.7%). But, there is no
response recorded as illiterate. This shows that the Nellore district is good in literacy rate and
majority of the consumers who responded the survey or who purchases dairy products are
having S.S.C. to graduation as their educational qualifications.
Table: 5.3
Education of respondents
Education Number of Percentage

respondents
Uneducated 0 0
Primary school 1 0.7%
Secondary school 10 6.7%
Graduate and above 139 92.7%
Total 150 100%
Source: Primary data
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5.2.4 Occupation
The final sample (N=150) was composed of 98 students (65.3%), 32 Employee (21.3
%) , 03 are involved in business and others are 11 respondents involved in various activities.
The major respondents are in student group.
Table: 5.4
Occupation of respondents
Occupation Number of Percentage

respondents
Student 98 65.3%
Employee 32 21.3%
Business 05 3.3%
Dairy/Food professional 04 2.7%
Others 11 16.5%
Total 150 100%
Source: Primary data
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5.2.5 Mode of residence
The final sample (N=150) was composed of 135 respondents living in family and
remaining 27 respondents are living individually. Most respondents are staying in family.
Table: 5.5
Residence of respondents
Residence Number of Percentage

respondents
Family 123 82%
Individual 27 18%
Total 150 100%
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5.2.6 Number of family members
Most of the respondents (85) are living in family with 4 members, the 41 respondents
are staying in a family with 5 and above members, 17 respondents are staying in family with
3 members, 4 respondents are staying in family with 2 members and only 3 respondents are
staying individually.
Table: 5.6
Number of family members
Number of family members Number of Respondents Percentage
1 3 2%
2 4 2.7%
3 17 11.3%
4 85 56.7%
5 and above 41 27.3%
Total 150 100%
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5.2.7 Martial Status
The final sample (N=150) composed of the 136 respondents without married and 14
respondents are married. Most of the respondents are not married in the survey.
Table: 5.7
Marital status of respondents
Marital Status Number of Percentage

respondents
Married 136 90.7%
Un-married 14 9.3%
Total 150 100%
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5.2.8 Monthly income of family
Most of the respondents family(52) income is 50,000 and above, the 42 respondents family
income is ranging between 25,000 to 50,000, 32 respondents family income is ranging
between 10,000 to 25,000 and 24 respondents family income is below 10,000.
Table:5.8
Monthly Income of Family
Monthly Income of Family Number of Respondents Percentage

(Rupees)
Below 10,000 24 16%
10,000-25,000 32 21.3%
25,000-50,000 42 28%
50,000 and above 52 34.7%
Total 150 100%
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5.2.9 Food habits:
The final sample (N=150) composed of 116 respondents are consuming

non-vegetarian and 34 respondents are consuming only vegetarian. Most of the respondents
belonging to non-vegetarian group.
Table:5.9
Food habits
Food Habits Number of Respondents Percentage
Non-vegetarian 116 77.3%
Vegetarian 34 22.7%
Total 150 100%
5.3 Consumer purchasing pattern for milk and milk products
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5.3.1 Frequency of purchasing milk:
Frequency of purchasing milk by the respondents in the Nellore

district. It is clear from the table that 63.84 respondents are purchasing milk daily once,
followed by purchasing twice daily 26.7%. However, 8.8% of the respondents are purchasing
milk two days once. The respondents purchasing rarely are at marginal percentage with 0.7%.
It is clear from the table that respondents purchasing milk daily once, twice and two days
once are consuming the milk daily.
Table:5.10
Frequency of purchasing milk
Frequency of purchasing milk Number of Respondents Percentage
Daily once 96 63.84%
Daily twice 40 26.7%
Two days once 13 8.8%
Rarely 1 0.7%
Total 150 100%
5.3.2 Frequency of purchasing curd/Dahi
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Frequency of purchasing curd/dahi by the respondents in the Nellore district. It is clear from
the table that 55.3% respondents are purchasing curd daily once, followed by purchasing few
time a week 20%. However, 10% of the respondents are purchasing curd two days once. The
respondents purchasing weekly once are at low with 14.7%.
It is clear from the table that respondents purchasing curd daily once, two days once and few
times in week are consuming the curd daily.
Table:5.11
Frequency of purchasing curd
Frequency of purchasing Curd/Dahi Number of Respondents Percentage
Daily once 83 55.3%
Two days once 15 10%
Few times in a week 30 20%
Weekly once 22 14.7%
Total 150 100%
5.3.3 Frequency of purchasing Ghee
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Frequency of purchasing ghee by the respondents in the Nellore district. It is clear from the
table that 49.3% respondents are purchasing ghee on only occasions, followed by purchasing
monthly once 40%. However, 10% of the respondents are purchasing ghee weekly. The
respondents preparing in home are at marginal percentage with 0.7%.
It is clear from the table that respondents purchasing ghee occasionally.so the respondents are
not consuming ghee daily.
Table:5.12
Frequency of purchasing Ghee
Frequency of purchasing milk Number of Respondents Percentage
Weekly 15 10%
Monthly 60 40%
On occasions 74 49.3%
Home made 1 0.7%
Total 150 100%
5.3.4 Type of milk preferred for purchasing
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According to the survey most of the respondents (27.3%) prefer to buy full cream
milk, following standardized milk is preferred more by respondents (25.3%). However, 22%
and 20% of the respondents prefer toned milk and double toned milk respectively.
It is clear from table that respondents prefer to purchase the high fat milk.
Table:5.13
Type of milk preferred
Type of milk Number of Respondents Percentage
Double toned milk 33 22%
Toned milk 30 20%
Standardized milk 38 25.3%
Full cream milk 41 27.3%
Others 08 5.3%
Total 150 100%
5.3.5 Quantity of milk used per day
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According to the survey, one litre of the milk used by 49.3% respondents per day,
34.7% respondents use half litre of milk per day. 12% of respondents use two litres milk per
day. only 4% of the respondents use above two litres of milk per day
It is clear from table that most of the respondents use more than one litre of milk per day.
Table:5.14
Quantity milk used per day
Type of milk Number of Respondents Percentage
Half litre 52 34.7%
One litre 74 49.3%
Two litres 18 12%
Two litres above 6 4%
Total 150 100%
5.4 Consumer motivation for purchasing milk and milk products
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4.4.1 Purpose for purchasing milk
According to the survey, 90.6% of the respondents purchase

milk for consuming as a part of diet, 6.6% respondents purchase milk specially for occasions,
2% respondents purchase milk by influence of others and only 0.7% respondents purchase
milk for medical advice.Most of the respondents purchase milk for consuming as a part of
diet.
Table:5.15
Purpose for purchasing milk
Purpose Number of Respondents Percentage
As a part of regular diet 136 90.6%
Occasions 10 6.6%
Influence of others 03 2.0%
Medical advice 01 0.7%
Total 150 100%
5.4.2 Purpose for purchasing Curd/Dahi

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curd for consuming as a part of diet, 11.3% respondents purchase specially for occasions,
6.7% respondents purchase curd by influence of others and only 2.7% respondents purchase
milk for medical advice.
Most of the respondents purchase curd for consuming as a part of diet.
Table:5.16
Purpose for purchasing Curd/Dahi
Occasions 17 11.3%
Total 150 100%
5.4.3 Purpose for purchasing Ghee
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ghee specially for occasions, 38.7% respondents purchase ghee consuming as a part of diet,
8.0% respondents purchase ghee by influence of others and only 2.7% respondents purchase
ghee for medical advice.
Most of the respondents purchase ghee for specially occasions.
Table:5.17
Purpose for purchasing Ghee
Occasions 76 50.7%
Total 150 100%
5.4.4 Influence for purchasing milk
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It’s clear from table that respondents are purchasing milk for
health benefits.50% of respondents purchase milk for health benefits, 49.3% respondents
purchase milk for freshness, 0.7% respondents purchase milk on influence by advertisement
and others influence is not there in purchasing milk.
Advertisements doesn’t influence in purchasing milk, whereas health benefits play important
role in influence in purchasing milk.
Table:5.18
Influence for purchasing milk
Influence Number of Respondents Percentage
Freshness 74 49.3%
Advertisement 1 0.7%
Health benefits 75 50%
Influence by others 0 0%
Total 150 100%
5.4.5 Influence for purchasing Curd/Dahi
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According to survey, 54.7% of respondents purchase curd
for health benefits, 40% respondents purchase curd for freshness, 4% respondents purchase
curd on influence by advertisement and 1.3% respondents purchase curd by influence of
others.
Advertisements and influence of others doesn’t show any difference in purchasing Curd,
whereas health benefits play important role in influence in purchasing Curd.
Table:5.19
Influence for purchasing Curd/Dahi
Freshness 60 40%
Health benefits 82 54.7%
Influence by others 2 1.3%
Total 150 100%
5.4.6 Influence for purchasing Ghee
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According to survey, 52.7% of respondents purchase ghee
for health benefits, 40.07% respondents purchase ghee for freshness, 4.7% respondents
purchase ghee on influence by advertisement and 2.0% respondents purchase ghee by
influence of others.Influence of others doesn’t show any difference in purchasing ghee,
whereas health benefits play important role in influence in purchasing of ghee.
Table:5.20
Influence for purchasing Ghee
Freshness 61 40.07%
Health benefits 79 52.7%
Influence by others 03 2.0%
Total 150 100%
5.5 Consumer preference for purchasing milk and milk products
5.5.1 Preference for purchasing milk

50 | P a g e
According to survey, 55.3% of respondents are preferred to
purchase milk from local vendor and 44.7% respondents preferred to purchase branded milk.
Most of the respondents preferred to purchase milk from local vendor, but almost similar
number of respondents preferred branded milk.
Table:5.21
Preference for purchasing milk
Preference Number of Respondents Percentage
Branded 66 44.7%
Local vendor 84 55.3%
Total 150 100%
5.5.2 Preference for purchasing Curd
51 | P a g e
According to survey, 60% of respondents are preferred to
make curd in home, 33.3% respondents preferred to purchase branded curd and 6.7%
respondents preferred to purchase curd from local vendor.
Most of the respondents preferred to make Curd in home.
Table:5.22
Preference for purchasing Curd/Dahi
Branded 50 33.3%
In home preparation 90 60.0%
Total 150 100%
5.5.3 Preference for purchasing Ghee
52 | P a g e
According to survey, 45.3% of respondents are preferred to
make ghee in home, 38% of respondents preferred to purchase branded ghee and 16.7%
respondents preferred to purchase ghee from local vendor.
Most of the respondents preferred to make ghee in home.
Table:5.23
Preference for purchasing Ghee
Branded 57 38.0%
In home preparation 68 45.3%
Total 150 100%
5.5.4 Preferred mode for purchasing milk
53 | P a g e
According to survey, 57.3% respondents are preferred to
purchase milk personally, 31.3% respondents preferred to purchase milk by door delivery,
8% respondents preferred to purchase milk in manufacturer outlets and only 3.3%
respondent’s preferred other mode for purchasing milk.
Most of the respondents preferred to purchase milk personally.
Table:5.24
Preferred mode for purchasing milk
Preferred mode Number of Respondents Percentage
Personal buying 86 57.3%
Door delivery 47 31.3%
Manufacturer outlets 12 8.0%
others 05 3.3%
Total 150 100%
5.5.5 Preferred mode for purchasing Curd/Dahi
54 | P a g e
According to survey, 57.3% respondents are preferred to
purchase curd personally, 16% respondents preferred to purchase curd by door delivery, 16%
respondent’s preferred other mode for purchasing curd and only 10.7% respondents preferred
to purchase milk in manufacturer outlets.
Most of the respondents preferred to purchase curd personally.
Table:5.25
Preferred mode for purchasing Curd/Dahi
Personal buying 86 57.3%
Door delivery 24 16%
others 24 16%
Total 150 100%
5.5.6 Preferred mode for purchasing Ghee
55 | P a g e
According to survey, 58% respondents are preferred to
purchase ghee personally, 11% respondents preferred to purchase ghee by door delivery,
17.3% respondent’s preferred other mode for purchasing ghee and 13.3% respondents
preferred to purchase milk in manufacturer outlets.
Most of the respondents preferred to purchase ghee personally.
Table:5.26
Preferred mode for purchasing Ghee
Personal buying 87 58%
Door delivery 17 11.3%
others 26 17.3%
Total 150 100%
5.5.7 Preferred type of packaging for purchasing milk
56 | P a g e
According to survey,36.7% respondents are preferred
tetrapak for type of packing, 30% respondents preferred polythene for type of packaging,
12% respondents preferred PET bottles for type of packaging and interestingly, 21.3%
respondents preferred glass for type packaging.
Table:5.27
Preferred type of packing for purchasing milk
Preferred type of packing Number of Respondents Percentage
Tetra pack 55 36.7%
Polythene 45 30%
PET bottles 18 12%
Glass 32 21.3%
Total 150 100%
5.5.8 Brand preference for purchasing milk
57 | P a g e
It is clear from table that majority of respondents are
showing preference to brand while purchasing milk and milk products and very marginal
respondents are not showing preference to brand while purchasing.
Table:5.28
Brand preference for purchasing milk, Curd and Ghee
Preferred type of Number of Respondents Percentage

packing
Milk Curd Ghee Milk Curd Ghee
Most important 94 81 87 62.7% 54% 58%
Important 41 53 43 27.3% 35.3% 28.7%
Not important 15 16 20 10% 10.7% 13.3%
Total 150 150 150 100% 100% 100%
5.6 Consumer satisfaction levels on milk and milk products
58 | P a g e
4.6.1 Satisfaction level on quality of Milk, Curd and Ghee
According to the survey, most of the respondents are very

satisfied and satisfied on quality of milk and milk products. However there are respondents
neither satisfied nor dissatisfied on quality of milk and milk products, but there are very
nominal respondents who are dissatisfied with quality of product.
Table:5.29
Satisfaction level on quality of Milk, Curd and Ghee
Satisfaction level on Number of Respondents Percentage

quality of products
Very satisfied 65 62 57 43.3% 41.3% 38%
Satisfied 57 61 52 38.0% 40.7% 34.7%
Neutral 25 26 38 16.7% 17.3% 25.3%
Dissatisfied 03 01 03 2.0% 0.7% 2.0%
Total 150 150 150 100% 100% 100%
5.6.2 Satisfaction level on price of Milk, Curd and Ghee
59 | P a g e
satisfied and satisfied on price of milk. However, there are respondents neither satisfied nor
dissatisfied on price of milk but there are very nominal respondents who are dissatisfied with
price of milk. But respondents are not completely satisfied on price of milk products as
compared to price of milk.
Table:5.30
Satisfaction level on price of Milk, Curd and Ghee

price of products
Very satisfied 34 31 27 22.7% 20.7% 18.0%
Satisfied 76 77 61 50.7% 51.3% 40.0%
Neutral 30 36 48 20.0% 24% 32.0%
Dissatisfied 10 06 14 6.7% 04% 9.3%
Total 150 150 150 100% 100% 100%
5.6.3 Satisfaction level on Availability of Milk, Curd and Ghee
60 | P a g e
satisfied and satisfied on availability of milk and milk products. However, there are some
respondents neither satisfied nor dissatisfied on availability of milk and milk products, but
there are very nominal respondents who are dissatisfied with availability of product.
Table:5.31
Satisfaction level on Availability of Milk, Curd and Ghee

Availability of
products Milk Curd Ghee Milk Curd Ghee
Very satisfied 64 59 51 42.7% 39.3% 34.0%
Satisfied 67 70 71 44.7% 46.7% 47.3%
Neutral 18 20 25 12.0% 13.3% 16.7%
Dissatisfied 01 01 03 0.7% 0.7% 2.0%
Total 150 150 150 100% 100% 100%
61 | P a g e
Summary
This chapter is devoted for giving summary of findings made from the study and offering
suitable suggestions to improve the quality of branded packaged milk marketed by public and
private companies to the consumers in Nellore District. The findings are presented on the
basis of survey conducted and by using different tools of analysis such as Percentage
analysis.
Findings of the study
 It is observed that majority (86.7%) of the respondents belong to age group of 18-25
years. It shows that majority of population in Nellore district are youth.
 It is found that there is no complete gender bias, almost there are same number of
males (54.7%) and females (46%) in survey.
 The online survey was conducted so all the respondents were literates. It is found that
92.7% respondents completed their graduation, which shows the high literacy rate in
urban areas of Nellore district.
 From the analysis it is observed that more than half (65.3%) of the respondents are
students and almost other half (35.7%) of respondents are doing some sort of jobs,
business and others works.
 It is observed that most of the respondents (82%) are staying in a family and only
18% of respondents are staying individually.
 It is found that majority of respondents (34.7%) family income is above ₹50,000 and
84% of respondents are living above the poverty line.
 From the analysis it is clearly found out that 77.3% respondents are non-vegetarian
and only 22.7% are vegetarians. It shows that high number of non-vegetarian’s in
Nellore district, however its very less when compared to the non-vegetarians in
Andhra Pradesh (98.25%, 2014).
 It is clear from the survey that 91% of respondents purchase milk on daily basis and
98.3% of the respondents consume milk daily.
 From the analysis it shows 49.3% respondents use one litre milk daily and 16% of
respondents use two and two litres above milk per day.
 The respondents (27.3%) mostly use Full cream milk and 25.3% respondents
purchase standardized milk. It shows that respondents consume slightly high fat milk,
62 | P a g e
due to availability of buffalo milk from past. Most respondents consume slightly high
fat milk.
 It is found that 55.3% respondents purchase curd/Dahi daily and consume curd on
daily basis, whereas ghee is purchased and consumed especially for occasions
 According to survey 90.6% of respondents consume milk as a part of diet, 79.3% of
respondents consume curd as a part of diet, but however respondents consume ghee as
a part of diet (38.7%) and for occasions (50.7%).
 Health benefits of milk, curd and ghee mainly influence on purchasing the following
products. Almost half of the respondents are influenced by health benefits for
purchasing products.
Consumer preferences
 The 55.3% of respondents prefer to purchase milk from the local vendors and 44.7%
respondents prefer to purchase branded milk.
 It is observed that 60% of respondents prefer to make curd in home than purchase
from the shop and 45.3% of respondents prefer to make ghee in home. It shows that
consumers prefer to make the milk products in home.
 Almost half of the respondents (57.3%) prefer to purchase milk personally by going to
shop and 31.3% respondents prefer to purchase milk through door-delivery.
 Most of the respondents prefer to purchase curd and ghee personally by going to shop,
the more number of respondents did not prefer to purchase curd and ghee through
door-delivery.
 It is found that 36.7% respondents prefer to purchase milk with tetrapak packaging
and 30% respondents prefer polythene packaging.
 More than half of the respondents prefer brand while purchasing milk, curd and ghee.
Satisfaction level of consumers
 It is clearly found out that most of the respondents (75%) are very satisfied and
satisfied with the quality of milk, curd and ghee available to them.
 It is observed that most of respondents (80%) are very satisfied and satisfied with the
availability of milk, curd and ghee.
 Most of the (48.05%) respondents are satisfied with the price of milk but some of the
respondents (30%) are not satisfied or neutral with the price of curd and ghee.
63 | P a g e
Conclusion
Indian dairy sector contributes the largest percentage of share in agricultural gross
domestic products. India is the world's largest producer of milk, with 22% of global
production in 2018. If the milk is not properly marketed or sold as equal to the growth of
milk production the demand of milk decreases and the price of milk goes down. So the topic
consumer preference on specific products has drawn substantial attention recent years as a
field of study. Consumers today are well aware of various brands in the market and more
conscious about what they consume. They pick and consume products according to their
needs and preferences.
There is no doubt that there is marvellous scope for the evolution of the dairy industry
in the new coming years. In this survey it has attempted to analyse the buyer behaviour of
households in fluid milk, curd and ghee purchase, an in-depth study was carried out to
recognize the factors influencing exclusive purchase of products and the satisfactory levels of
consumers also analysed on various aspects.
All the myths which downside the purchase of milk products regarding fat content
and several other factors should be busted openly and publicity must be given about
importance of milk products. The dairies should understand the customer preferences and
satisfy them accordingly to increase the sales of the product. The advertisements are not
playing any role in purchasing the milk products so dairies should analyse their marketing
mix elements and improve the marketing efforts so as to maintain trustworthy customer base
and towards achievement of their goals.
Suggestions
 The health benefits of ghee must be explained to the consumers so that they take ghee
as a part of diet daily.
 Advertisements are not playing any important role in purchasing milk and milk
products, so influencing advertisements should be made on importance of milk and
milk products to increase the sales of products.
64 | P a g e
 The interest of consumers is growing day by day on door delivery services, certain
monthly plans must be developed to give door to door delivery service of milk
products by not increasing the price.
 The manufacturing outlets of dairy companies should still reduce the price of products
and should give coupons to customers, that will encourage consumers to buy regularly
from them.
 The price of the milk products like curd and ghee must be reduced, so that even low
income group people will be able to purchase the milk and ghee.
65 | P a g e
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A Study On Consumer Preferences Towards Milk and Milk Products in

For award of degree of

Prof. (Dr.) John David

Warner college of Dairy Technology

Sam Higginbottom University of Agriculture, Technology and

GLOBAL SCENARIO OF DAIRY SECTOR

DAIRY INDUSTRY IN INDIA

MAJOR PLAYERS IN INDIA

CONSUMPTION OF MILK IN INDIA

There is a long history and tradition of high dairy consumptions in India, as

 Fluid Milk - 46.0%

 Ghee (Clarified Butter) - 27.5%

 Curd (Yogurt) - 7.0%

 Khoa (dehydrated condensed milk) - 6.5%

 Paneer (Cottage Cheese) - 2.0%

 Other, including cream, ice cream - 1.0%

(Source: National Dairy Development Board Annual report in India-2013)

DAIRY INDUSTRY IN ANDHRA PRADESH

The Andhra Pradesh Dairy Development Cooperative Federation (APDDCF):

cooperative societies in each district come under district cooperative federation.

District Cooperative Federations:

1. Kurnool District Dairy Dev. Coop Federation.

2. Ongole District Dairy Dev. Coop Federation.

3. Vizag District Dairy Dev. Coop Federation.

4. Chittoor District Dairy Dev. Coop Federation

5. Nellore District Dairy Dev. Coop Federation.

6. Guntur District Dairy Dev. Coop Federation.

7. Krishna District Dairy Dev. Coop Federation.

aspects of S.P.S Nellore District are delineated here under.

BOUNDARIES OF THE DISTRICT

3. To identify the preferences of consumer on milk and milk products.

Rama Prasad (2004) the researcher investigated on ‘Consumer Preferences in Dairy

Subramanyam et al.(1982) studied the consumer opinion on purchase of dairy products in

SIGNIFICANCE OF THE STUDY

The relevance and importance of understanding the consumer behaviour is rooted in

The consumer motives, perceptions, preferences, patterns of purchasing and

Research area of the study

3. To identify the influencing factors in buying milk and milk products.

The general information collected includes

1. Name of the respondent

1. Type of milk preferred

LIMITATIONS OF THE STUDY

The major limitations of the present study were listed as follows:

5.2 Demographics of the respondents

The demographic of the respondents include

1. Name of the respondent

Table No: 5.1

Age group of Respondents

Age group Number of Percentage

Total 150 100%

Gender group of respondents

Gender Number of Percentage

Total 150 100%

Education Number of Percentage

Primary school 1 0.7%

Secondary school 10 6.7%

Graduate and above 139 92.7%

Total 150 100%

Source: Primary data

Occupation Number of Percentage

Dairy/Food professional 04 2.7%

Total 150 100%