A Report On

Opportunity Cost Consideration Concerning Food Outlets

ECON F435 Marketing Research

Prepared by:
V. Kiran Kumar (2021A1PS2597P)
A Sai Puviiyarasu (2021A1PS2594P)
Praveen Singh (2021B5TS2064P)
Marketing Problem:
The marketing problem in this context revolves around understanding and optimizing students'
spending behaviour on food and dining options at BITS Pilani, Pilani Campus. Specifically, it
involves identifying factors influencing students' choices among various dining options available both
on and off campus and addressing any challenges or barriers that may impact students' dining
decisions. This includes the following questions:
1. What factors influence students' choices between dining at the mess, canteens, or local
restaurants?
2. Are students aware of the opportunity costs associated with their food choices?
3. How can food outlets effectively communicate the value proposition of their offerings?

Marketing Research Problem:

The research problem aims to investigate the level of opportunity cost consideration among students
when making food-related spending decisions. To address the marketing research problem, the
following research questions were formulated:
1. What is the level of opportunity cost consideration among students when making
food-related spending decisions?
2. Do students actively weigh the opportunity costs of dining options available on campus
versus off-campus alternatives?
3. How do students perceive the value of adding expenses to their Student Welfare Division
account versus paying with their own money at various food outlets?
4. How can students be segmented based on their planning approach?Do these segments
respond differently when exposed to resource constraints?

Research Design:
This study incorporates elements of both exploratory and descriptive research.
Exploratory Component:
The exploratory aspect involves a better understanding of the behaviours and tendencies of
the participants to gain further insights about the listed hypothesis as well as the task at hand.
Descriptive Component:
The descriptive aspect involves collecting data on participants' spending behaviour,
decision-making processes, and propensity to plan. This allows researchers to describe and
understand the characteristics and tendencies of participants regarding opportunity cost
consideration and to explain possible relationships between the variables of interest.

Hypotheses:
H1: Resource Constraints Increase Opportunity Cost Consideration:
Null Hypothesis (H0): There is no significant difference in opportunity cost
consideration between individuals facing resource constraints and those not facing
resource constraints.
Alternative Hypothesis (H1): Individuals facing resource constraints demonstrate
increased opportunity cost consideration compared to those not facing resource
constraints.
H2a: Non-planners vs. Planners in Opportunity Cost Consideration:
 Null Hypothesis (H0): There is no significant difference in opportunity cost
consideration between non-planners and planners when not facing immediate
resource constraints.
Alternative Hypothesis (H2a): Nonplanners are less likely than planners to consider
opportunity costs when not facing immediate resource constraints, but nonplanners
are as likely as planners to consider opportunity costs when facing immediate
resource constraints.
H2b: Effect of Resource Constraints on Opportunity Cost Consideration for
Nonplanners and Planners:
Null Hypothesis (H0): Resource constraints have no effect on opportunity cost
consideration for both nonplanners and planners.
Alternative Hypothesis (H2b): Resource constraints increase opportunity cost
consideration for non-planners, but resource constraints do not affect opportunity cost
consideration for planners.

Operationalization of Concepts:
Accessibility: The degree to which alternative uses of resources are easily retrievable or
salient in individuals' decision-making processes.
Opportunity Cost Consideration: The extent to which individuals actively weigh the
opportunity costs associated with different spending options.
Propensity to Plan: Individuals' tendency to engage in future-oriented planning related to the
use of resources.
Study Design:
Participants: Undergraduate students from BITS Pilani, Pilani Campus.
Data Collection Method: Online surveys or interviews were conducted with participants to
gather data on their spending behaviour, decision-making processes, and propensity to plan.

Variables of Interest:
Opportunity Cost Consideration: Assessed using a scale consisting of items related to
participants' awareness and consideration of opportunity costs in their spending decisions.
Propensity to Plan: Measured using a scale to assess participants' tendency to engage in
future-oriented planning regarding the use of resources.
Accessibility Manipulation: Participants are exposed to different scenarios or prompts that
vary in their ability to activate alternative uses of resources. For example, scenarios could be
designed to increase or decrease the salience of opportunity costs associated with food
spending.

Measurement:
Participants' responses to survey items assessing opportunity cost consideration, propensity to plan,
and other relevant constructs.
Behavioural measures: Participants' actual spending decisions in hypothetical scenarios or real-world
contexts.
Data Analysis:
Descriptive Analysis:
● Calculate frequencies and percentages for responses to each question to understand the
distribution of responses.
● Examine means and standard deviations for quantitative variables like weekly food
expenditure to understand spending patterns.

Segmentation Analysis:
● Segment respondents based on their dining frequency, budget constraints, and awareness of
opportunity costs.
● Compare the behaviours and preferences of different segments to identify distinct consumer
groups and their needs.

Correlation Analysis:
● Explore correlations between factors such as dining preferences, awareness of opportunity
costs, and satisfaction levels to identify potential relationships.
● For example, examine whether students who are more aware of opportunity costs tend to
prioritize price or value when choosing dining options.

Regression Analysis:
● Conduct regression analysis to understand the factors influencing students' dining choices.
● For instance, regress dining expenditure on factors like income, dining preferences, and
perceived value to identify significant predictors of spending behavior.

Factor Analysis:
● Use factor analysis to identify underlying dimensions in students' dining preferences and
behaviours.
● This could help uncover latent constructs such as price sensitivity, food variety preference, or
convenience orientation.

ANOVA or T-Tests:
● Compare mean scores on different variables across groups (e.g., gender, program of study,
year of study).
● Determine if there are significant differences in dining behaviours or attitudes between
demographic groups.

Qualitative Analysis:
● Analyze open-ended responses to understand the reasons behind students' choices and
behaviours.
Objectives of the Questionnaire:
1) To understand the resource constraints(accessibility) faced by participants- both the presence and
extent of it.
2) To understand the participant’s spending tendencies on food as well as their behavior in
hypothetical and real scenarios involving choosing between multiple options(opportunity cost
consideration).
3) To segment participants on the basis of propensity to plan i.e, into planners and non-planners.

Questionnaire:
1. How often do you eat at food outlets on campus?

Daily
Multiple times a week
Once a week
Rarely
Never

2. When deciding where to eat on campus, which factors are most important to you? (Select all that
apply)

Proximity to accommodation/hostel
Variety of food options
Price/affordability
Quality of food
Convenience of payment method (e.g., SU App, UPI, Cash)
Social atmosphere/attractiveness of dining area
3. How often do you face challenges in accessing food outlets on campus due to:
a. Financial constraints?

Frequently
Occasionally
Rarely
Never
b. Time constraints (e.g., class schedules, workload)?

Frequently
Occasionally
Rarely
Never
c. Physical accessibility constraints?

Frequently
 Occasionally
Rarely
Never
4. On average, how much do you spend on food per week at campus food outlets(in Rupees)?

Less than 100

100-200
200-300
300-400
More than 400
5. Imagine you were given Rs.150 to spend on a meal at a campus food outlet. How likely are you to
consider:
a. Buying a filling but inexpensive meal?

Very likely
Likely
Neutral
Unlikely
Very unlikely
b. Trying a new, potentially more expensive dish?

Very likely
Likely
Neutral
Unlikely
Very unlikely
c. Which of these options are you most likely to choose

C’not
Redi
ANC
Looters/Tott
Food Ministry

6. You have 30 minutes between classes and are hungry. Would you:
a. Choose the nearest food outlet, even if it's slightly more expensive?

Yes
No
b. Walk a bit further to a cheaper food outlet?

Yes
No
7. Are you aware of the opportunity costs associated with your dining choices on campus?

Yes
No
Not sure
8. If yes, which of the following opportunity costs do you consider when making dining decisions?
(Select all that apply)

Cost of going out vs. mess

Eating healthier vs. tastier
Cost of eating at higher-priced outlets vs. lower-priced outlets
Time spent waiting vs. time spent studying or relaxing
Impact on overall monthly spending budget
Other (please specify):

9. How do you typically pay for meals at the campus food outlets?

SU App
Cash
UPI

10. How do you perceive the value proposition of the various dining options on campus in terms of
price, quality, and variety?
Mess

Very Good
Good
Moderate
Bad
Very Bad
ANC

Very Good
Good
Moderate
Bad
Very Bad

LOOTERS

Very Good
Good
Moderate
Bad
Very Bad
TOTT

Very Good
Good
Moderate
Bad
Very Bad

FOOD MINISTRY

Very Good
Good
Moderate
Bad
Very Bad

C’NOT(Your favourite Restaurant)

Very Good
Good
Moderate
Bad
Very Bad

REDI(Your favourite one)

Very Good
Good
Moderate
Bad
Very Bad

11. Imagine you have a limited dining budget for the month, and you must make choices about where
to eat to stay within this budget. How likely are you to consider the prices and value of dining options
before making a decision?

Very unlikely
Unlikely
Likely
Very likely
 Not sure

12. How would you adjust your choices if you were to face immediate resource constraints, such as a
sudden decrease in your available budget?

I would prioritize cheaper options.

I would go out less frequently.
I would consider eating at the mess more often.
Other (please specify):
Not applicable

13. How important is variety in options for you when choosing where to eat on campus?

Very important
Important
Somewhat important
Not very important
Not important at all

14. How satisfied are you with the current range of options available on campus?

Very satisfied
Satisfied
Neutral
Dissatisfied
Very dissatisfied

15. How likely are you to try new options on campus to avoid getting tired of your usual choices?

Very likely
Likely
Neutral
Unlikely
Very unlikely

16. How satisfied are you with the balance between the cost and quality of food at the options
available on campus?

Very satisfied
Satisfied
Neutral
Dissatisfied
Very dissatisfied
17. Would you be willing to pay slightly more for dining options that offer greater variety or novelty,
even if it means sacrificing some cost savings?

Yes, definitely
Yes, maybe
No, probably not
No, definitely not

18. Have you ever chosen a dining option on campus primarily because it offered better value for
money, even if it wasn't your top preference in terms of taste or ambience?

Yes, frequently
Yes, occasionally
No, rarely
No, never
Not applicable/I don't know

19. How often do you consider the long-term implications of your dining choices, such as how
repetitive dining habits might affect your overall satisfaction with campus dining options?

Very often
Often
Sometimes
Rarely
Never
Not applicable/I don't know
20. How often do you plan your meals?

Always
Often
Sometimes
Rarely
Never
21. Would you say you have a consistent weekly meal routine?

Yes, I stick to the same meals on certain days each week

Somewhat, I have a rough idea of what I'll eat but it varies
No, my meal choices vary widely from week to week
22. Do you believe that meal planning helps you save money?

Strongly agree
Agree
Neutral
Disagree
 Strongly disagree

Demographic Information:
Gender:

Male
Female
Other
Age:

Under 18
18-24
25-34
35-44
45 and above
Which programme are you pursuing:

B.E/Msc
M.E
PhD
Bpharm
MBA
Year of Study:

Freshman
Sophomore
Junior
Senior
Graduate student

THANK YOU !!