Customers' Preference Towards Packaged Grocery Products

“A STUDY ON CUSTMERS’ PREFERENCE TOWARDS PACKAGED GROCERY
PRODUCT”
Abstract
I have conducted a research on topic “ A study on customers’ preference towards
grocery packaged product’. For this I selected Durg and Bhilai as a target market and I started my
researchfrom11th
of March 2014 and collectedthe datafromthese twocities. I collected data from
businessmen,students,servicemen/professionals and households. I completed my data collection
on 23/03/2014 and then I started data tabulation & finally I made data analysis 25/03/2014. In data
analysis I used One-way ANOVA Technique. I used SPSS to analyze the data. As the result, I found
that there is a significantdifference betweenthe factors of packagedgrocery product in the opinion
of the customers.All factorshave differentimpactonthe preference of customersandthese factors
help the marketers while developing sales strategies.
INTRODUCTION
Very early in time, food was consumed where it was found. Families and villages were self-
sufficient, making and catching what they used. When containers were needed, nature
provided gourds, shells, and leaves to use. Later, containers were fashioned from natural
materials, such as hollowed logs, woven grasses and animal organs.
Fabrics descended from furs used as primitive clothing. Fibers were matted into felts by
plaiting or weaving. These fabrics were made into garments, used to wrap products or
formed into bags. With the weaving process, grasses, and later reeds, were made into
baskets to store food surpluses. Some foods could then be saved for future meals and less
time was needed for seeking and gathering food.
As ores and compounds were discovered, metals and pottery were developed, leading to
other packaging forms. A brief review of the more popular packaging developments are
included in this fact sheet.
Sixty years ago our food was grown, farmed and processed within relatively short distances
of retail outlets. Today, foods originate all over the world. The functions of packaging have

multiplied and foods must be protected and kept in good condition during transport and
storage throughout the distribution chain. All the skill, quality, and reliability built into the
food during growing, processing, and preparation will be wasted unless proper design and
manufacture of packaging ensures 'safe delivery to the consumer in prime condition at an
economic cost'.
The Grocery sector in India is riding the wave of the retail revolution. It is a large industry
divided into organized and unorganized, small and large scale units. Rice, Atta, Sugar, Pulses
are the major products that fall in this category. Nichrome has contributed to this sector in a
big way. Kohinoor, Dawat, Pilsbury, Kargil, ITC, India Gate, Lal Quila, KBR, Deccan Sugar,
Mawana Sugar, Nilgiris....
LITERATURE REVIEW
History of food packaging
Early in history food was consumed where it was found. With the development of
agriculture, families and villages were self-sufficient, producing, making and catching what
they used. When packaging was needed, nature provided shells, gourds, animal skins etc.
In time, containers or packaging were made from natural materials such as reeds, grasses,

logs, bark and animal parts. Grasses and reeds were woven into baskets to store food. As
ores and metals were discovered, metals and pottery were developed, leading to other
packaging forms. An approximate chronology is as follows:
> 20,000 years ago – modified natural materials – grass, reeds, skins
8,000 years ago – ceramics, amphorae, - developed in the Middle East
5,000 years ago – wood, barrels, boxes, crates – wooden boxes found in Egyptian tombs
3,500 years ago – mass produced ceramics, pottery – invention of the pottery wheel
2,500 years ago – glass containers, - glass blowing developed by the Phoenicians and Syrians
2,000 years ago – paper and cellulose fibres - not true paper.
The last 1,000 years has seen many changes and advances in packaging as a result of huge
social change. The expansion of trade played a part.
In the 1970s a study of packaging systems in China found that 17.5 percent of the country’s
cement was lost during transportation; and 20 percent of all glass was damaged before it
could be used.
Similar findings came out of a study in Russia in the 1980s where it was found that lack of
packaging, distribution and storage facilities resulted in annual losses of:
45 percent of fresh vegetables – as high as 70 percent of potatoes;
55 percent of fresh fruit;
50 percent of grain;
1 million tons of meat; and
1.5 million tons of fish.
Packaging has several objectives:

 Physical protection - The foodenclosedinthe package may require protectionfrom, among
other things, shock, vibration, compression, temperature, etc.
 Barrier protection - A barrier from oxygen, water vapor, dust, etc., is often required.
Permeation is a critical factor in design. Some packages contain desiccants or Oxygen
absorbers to help extend shelf life. Modified atmospheres or controlled atmospheres are
alsomaintainedinsome food packages.Keepingthe contents clean, fresh, and safe for the
intended shelf life is a primary function.
 Containmentor agglomeration - Small itemsare typically grouped together in one package
for reasons of efficiency. powders, and granular materials need containment.
 Information transmission - Packages and labels communicate how to use, transport,
recycle, or dispose of the package or product. Some types of information are required by
governments.
 Marketing - The packaging and labels can be used by marketers to encourage potential
buyers to purchase the product. Package design has been an important and constantly
evolvingphenomenon forseveral decades. Marketing communications and graphic design
are applied to the surface of the package and (in many cases) the point of sale display.
 Security - Packaging can play an important role in reducing the security risks of shipment.
Packages can be made with improved tamper resistance to deter tampering and also can
have tamper-evident features to help indicate tampering. Packages can be engineered to
helpreduce the risks of package pilferage: Some package constructions are more resistant
to pilferage and some have pilfer indicating seals. Packages may include authentication
seals to help indicate that the package and contents are not counterfeit. Packages also can
include anti-theft devices, such as dye-packs, RFID tags, or electronic article surveillance

tags, thatcan be activatedor detectedby devicesat exitpointsandrequire specializedtools
to deactivate. Using packaging in this way is a means of retail loss prevention.
 Convenience - Packagescanhave featureswhichadd convenience in distribution, handling,
stacking, display, sale, opening, reclosing, use, and reuse.
 Portion control - Single serving packaging has a precise amount of contents to control
usage.Bulkcommodities(suchassalt) can be divided intopackagesthatare a more suitable
size forindividualhouseholds.It isalso aidsthe control of inventory:sellingsealedone-liter-
bottles of milk, rather than having people bring their own bottles to fill themselves. =
Types of Package
Paper and Paper Products
Paper may be the oldest form of what today is referred to as "flexible
packaging."Sheetsof treatedmulberrybarkwere usedbythe Chinese to wrap foods as early as the
Firstor SecondcenturyB.C. Duringthe next fifteen hundredyears,the paper-makingtechnique was
refined and transported to the Middle East, then Europe and finally into the United Kingdom in
1310. Eventually, the technique arrived in America in Germantown, Pennsylvania, in 1690.
Paper and paperboard packaging increased in popularity well into the 20th
century. Then with the advent of plastics as a significant player in packaging (late 1970s and early
1980s), paper and its related products tended to fade in use. Lately that trend has halted as
designers try to respond to environmental concerns.
Glass
Althoughglass-makingbeganin7000 B.C. as an offshoot of pottery, it was first industrialized in
Egypt in 1500 B.C. Made from base materials (limestone, soda, sand and silica), which were in
plentifulsupply,all ingredients were simplymelted togetherandmoldedwhile hot. Since that early
discovery, the mixing process and the ingredients have changed very little, but the molding
techniques have progressed dramatically.
At first, ropes of molten glass were coiled into shapes and fused together. By 1200 B.C., glass
was pressed into molds to make cups and bowls.

While other packaging products, such as metals and plastics, were gaining popularity in the
1970s, packaging in glass tended to be reserved for high value products. As a type of "rigid
packaging," glass has many uses today.
Metals
Ancientboxes and cups, made from silver and gold, were much too valuable for common use.
Other metals, stronger alloys, thinner gauges and coatings were eventually developed.
The processof tinplating was discovered in Bohemia in 1200 A.D. and cans of iron, coated with
tin, were known in Bavaria as early as the 14th = century.=20 However, the plating process was a
closely guarded secret until the 1600s. In 1764, London tobacconists began selling snuff in metal
canisters, another type of today's "rigid packaging." But no one was willing to use metal = for
food=20 since it was considered poisonous.
The safe preservation of foods in metal containers was finally realized in France in the early
1800s. Since food was now safe within metal packaging, other products were made available in
metal boxes.Inthe 1830s, cookiesandmatcheswere soldin tinsand by1866 the firstprintedmetal
boxes were made in the United States for cakes of Dr. Lyon's tooth powder.
Plastics
Plasticisthe youngestincomparisonwithotherpackaging materials. Althoughdiscoveredinthe
19th century, most plastics were reserved for military and wartime use.
Styrene was first distilled from a balsam tree in 1831. But the early products were brittle and
shattered easily. Germany refined the process in 1933 and by the 1950s foam was available
worldwide.Insulationandcushioning materials as well as foam boxes, cups and meat trays for the
food industry became popular.
. Labels and Trademarks
One rather recent development in packaging is the labeling of the product with the company
name and contents information.
In the 1660s, imports into England often cheated the public and the phrase "let the buyer
beware" became popular. Inferior quality and impure products were disguised and sold to

uninformedcustomers.Honestmerchants,unhappy withthis deception,beganto mark their wares
with their identification to alert potential buyers.
Official trademarkswere pioneered in1866 bySmithBrothersfor theircough drops marketedin
large glassjars. This was a new idea - using the package to "brand" a product for the benefit of the
consumer.
In 1870, the first registered U.S. trademark was awarded to the Eagle-Arwill Chemical Paint
Company.Today,there are nearlythree-quartersof a million (750,000) registeredtrademarksinthe
UnitedStates alone.Labelsnowcontaina great deal of informationintended to protect and instruct
the public.
A Review
From containers provided by nature to the use of complex materials and processes, packaging
has certainly changed. Various factors contributed to this growth: the needs and concerns of
people,competitioninthe marketplace, unusual events(suchaswars),shiftinglifestyles, as well as
discoveriesand inventions.Justasno single cause influencedpast development, a variety of forces
will be required to create the packages of the future.
Major Competitors of packaged product
 Reliance Fresh: To cover 70 cities, 784 urban towns and 6,000 - odd rural mandis
 Future Group: 500 Spencer's Fresh, Daily, Super and Hyper
 Wadhawan Group: 1,500 Spinach / S-Mart / Sabka Bazaar outlets in 100 cities
 Subhiksha : 2,500 neighbourhood outlets across the nation
Other major players firming up Pan-India plans include Bharti-Walmart,
AV Birla Group (Trinethra/More), Heritage Foods (Fresh @, Hypercity, Dairy Farm, (Foodworld),
Nilgiris, Radhakrishna Foodland, Influx, Landmark Group (Spar), Mother Dairy and Safal & region
specificexpansion byJubilantGroup(JumboSaver & Monday 2 Sunday), Hopcoms and Margin Free
in South, Adanis and Arambagh Foodmart in East India among others

Opportunity in grocery and food
The Urban Middle Class continues to grow by 20-25 million annually. The population is
young, better exposed to modern lifestyles, and has a preference for packaged food and
beverages. This growing Indian Middle Class, especially the employed youth in the ITES,
BPO and other Service sectors, have higher propensity to consume, fuelled by easy
availability of credit due to popularization of plastic cards.
More than 1,000 Food and Grocery outlets operational across tier-I and tier-II cities and
Retail space of over 3 million sq. ft. have come up for F&G supermarkets, department stores
and hypermarkets. 25 major F&G Retailers emerged in less than a year and Retail sales in
this segment grew by nearly 150 per cent over 2006.
RESEARCH METHODOLOGY
Research Objectives
1) To find out the preference level of packaged grocery product.
2) To identify the factors of packaged grocery factors.
3) To find out the significant/differences/similaritiesbetweenthe factors.

Research Model
Questionnaire Design
In questionnaire, I have used Likert’s measurement scale to identify the preference level of the
customers’preference towardspackagedgroceryproduct. Here 1 to 5 scales are used to be marked
their preference level , where ‘1 stands for Do not consider’, ‘2 stands for just consider’ , ‘3 stands
for little consider’, ‘4 stands for highly consider’ and ‘5 stands for more highly consider’. This
questionnaire includes 9 factors, which measures customers’ preference for packaged grocery
product. I decided9 factorsfor measuringthe preference level of customerslike availability , quality
Customers’
preference
Availability of
product
Quality of
product Feasibility of
collection
Purification
of product
Separation of
product
Packaged
size of
product
Brand Name
Convenient
Time Saving

of product,feasibilityof collection,separation, packagedsize,purification of product & convenient,
brand name & time saving.
This questionnaire also consists personal details including Name, Gender, Age Group,
Occupation and Monthly Income.
SAMPLING UNIT
Sampling/Unit is the total number of samples differed in different classess.
S.No. Classes No.of Classes
1. Student 40
2. Service class 20
3. Business Class 25
4. Household 15
Total 100
Data have been collected through the survey method while surveys have
been conducted in two city:
i) Bhilai
ii) Durg
All the data are primary in the nature as they had been collected first and
personally. All the area had segmented according the population of this area.
I have considered 100 as sample size.
Research Plan
Research Design : Descriptive Research
Data Source : Primary Data
Research Instrument : Questionnaire
Measurement scale : Likert’s Scale
Sample Plan

Sampling Design : Simple Random Design
Sample Size : 100
Sample Location : Bhilai & Durg
Sample Element : STUDENT – 40
SERVICE CLASS – 20
BUSINESS CLASS – 25
HOUSEHOLD – 15
DATA ANALYSIS AND RESULTS
H0 There is no significant different between factors from each other
H1 There is significant different between factors from each other
Technique For Data Analysis
In this research, One – Way ANOVA has been adopted as technique for data anlysis
ANOVA: ANOVA is essentially a procedure for testing the difference among the different
groupsof data forhomogeneity.The essence of ANOVA isthatthe total amount of variation in a set
of data isbrokendowninto two types, that can be attributed to chance and that amount which can
be attributed to specified causes.
Note: Following result has been calculated by using the SPSS Statistics 17.0 software.
Method to calculate one-way ANOVA in SPSS Statistics 17.0 as follows:
 Tabulate the data in Excel.
 Open the Excel file in SPSS Statistics
 Go to “Analyze to Compare means to one-way ANOVA then select variables from list &
transfer to factors box and select the value & transfer to Dependent box
 Finally click ok to get out put

ANOVA
Factor
Sum of
Squares Df Mean Square F Sig.
Between
Groups
91.929 8 11.491 8.368 .000
Within Groups 1223.520 891 1.373
Total 1315.449 899
Percentage wise result of each factors are as follows:
Factors X1 X2 X3 X4 X5 X6 X7 X8 X9
Average 3.9 4.4 3.6 3.9 4.09 3.2 3.7 3.8 4.1
Where X1 = Availability of product
X2 = Quality of product
X3 = Feasibility of collection
X4 = Separation of product
X5 = Purification of product
X6 = Packaged size of Product
X7 = Brand name of product
Average
0
1
2
3
4
5
X1 X2 X3 X4 X5 X6 X7 X8 X9
factors
Percentage
Average

X8 = Convenient
X9 = Time saving
INTERPRETATION OF FINDINGS
1) F > sig. (8.368 >1.948778)
So; Null hypothesis is rejected.
That means there is significant difference between the factors
from each other.
Likert’s measurement scale
Do not Little Just Highly More Highly
1 2 3 4 5
X1) Preference level of customersintermsof price while purchasing packaged grocery product:
X1
Frequency Percent Valid Percent Cumulative Percent
Valid 1 6 5.9 6.0 6.0
2 12 11.9 12.0 18.0
3 16 15.8 16.0 34.0
4 23 22.8 23.0 57.0
5 43 42.6 43.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0

As the above graph X1 explains that 43% people more highly
prefer availability of product and 23%, 16%, 12%, 6% people highly, just, little, do not prefer
availability of product respectively.
X2) Preference level of customers in terms of quality of product while purchasing packaged
grocery product:
X2
Valid 1 4 4.0 4.0 4.0
2 3 3.0 3.0 7.0
3 6 5.9 6.0 13.0
4 24 23.8 24.0 37.0
5 63 62.4 63.0 100.0
Total 100 99.0 100.0
Total 101 100.0

As the above graph X1 explains that 63% people more highly prefer quality of
product and 24%, 6%, 3%, 4% people highly, just, little, do not prefer quality of product
respectively.
X3) Preference level of customers in terms of feasibility of collection while purchasing
packaged grocery product:
X3
Valid 1 7 6.9 7.0 7.0
2 10 9.9 10.0 17.0
3 29 28.7 29.0 46.0
4 23 22.8 23.0 69.0
5 31 30.7 31.0 100.0
Total 100 99.0 100.0
Total 101 100.0

prefer feasibility of collection and 23%, 29%, 10%, 7% people highly, just, little, do not
prefer feasibility of collection respectively.
X4) Preference level of customers in terms of separation of product while purchasing
X4
Valid 1 1 1.0 1.0 1.0
2 8 7.9 8.0 9.0
3 32 31.7 32.0 41.0
4 22 21.8 22.0 63.0
5 37 36.6 37.0 100.0
Total 100 99.0 100.0
Total 101 100

As the above graph X1 explains that 37% people more highly prefer separation of
product and 22%, 32%, 8%, 1% people highly, just, little, do not prefer separation of product
respectively.
X5) Preference level of customers in terms of purification of product while purchasing
X5
Valid 1 7 6.9 7.0 7.0
2 7 6.9 7.0 14.0
3 13 12.9 13.0 27.0
4 16 15.8 16.0 43.0
5 57 56.4 57.0 100.0
Total 100 99.0 100.0
Total 101 100.0

As the above graph X1 explains that 56% people more
highly preferpurification of product and 16%, 13%, 7%, 7% people highly, just, little, do not
prefer purification of product respectively.
X6) Preference level of customers in terms of packaged size of product while purchasing
X6
Valid 1 8 7.9 8.0 8.0
2 24 23.8 24.0 32.0
3 27 26.7 27.0 59.0
4 22 21.8 22.0 81.0
5 19 18.8 19.0 100.0
Total 100 99.0 100.0
Total 101 100.0

As the above graph X1 explains that 19% people more highly packaged size of
product and 22%, 27%, 24%, 8% people highly, just, little, do not prefer packaged size of
product respectively.
X7) Preference level of customers in terms of brand name of product while purchasing
X7
Valid 1 7 6.9 7.0 7.0
2 10 9.9 10.0 17.0
3 21 20.8 21.0 38.0
4 26 25.7 26.0 64.0
5 36 35.6 36.0 100.0
Total 100 99.0 100.0
Total 101 100.0

As the above graph X1 explains that 36% people more highly brand
name and 26%, 21%, 10%, 7% people highly, just, little, do not prefer brand name
respectively.
X8) Preference level of customers in terms of convenient while purchasing packaged grocery
product:
X8
Valid 1 4 4.0 4.0 4.0
2 9 8.9 9.0 13.0
3 26 25.7 26.0 39.0
4 27 26.7 27.0 66.0
5 34 33.7 34.0 100.0
Total 100 99.0 100.0
Total 101 100.0

As the above graph X1 explains that 34%
people more highly covenient and 27%, 26%, 9%, 7% people highly, just, little, do not prefer
convenient respectively.
X9) Preference level of customersintermsof timessaving whilepurchasingpackagedgrocery
product:
X9 = Time Saving
Valid
1 2 2.0 2.0 2.0
2 9 8.9 9.0 11.0
3 14 13.9 14.0 25.0
4 25 24.8 25.0 50.0
5 50 49.5 50.0 100.0
Total 100 99.0 100.0
Total 101 100.0

time saving and 25%, 14%, 9%, 2% people highly, just, little, do not prefer time saving
respectively.
CONCLUSIONS
In conclusion, it can be said that there should be highly availability of packaged
grocery product. Most of the factors which influence the customers to purchase it are quality,
purification,brandname, convenientandtime saving and these are helpful to increase the sales of
this.
Businessclasspeople,service/professional, student as well as unmarried people are
the customerswhohighlyrequire thisproductasthe time saving is concerned. It may bring a bright
day for this grocery product sector if these are taken on the right hand & right way because as this
age is concerned, every one needs convenient, time saving in everything whatever they can be
availed.

REFERENCES
1) shopping habits and brand loyalty ,Radhika Chadha by
BLFeedback@thehindu.co.in, Financial Daily from THE HINDU group of
publications, Business Line.
2) Xavier Drèze,Stephen J. Hoch,Mary E. Purk,Graduate School of Business,The
University of Chicago,Last Revision November 1994.
3) Retail-shelf universal sign-holder pouch ,Document Type and Number:
United States Patent 6651369 .

APPENDICES
1) Questionnaire
QUESTIONNAIRE
I am student of Shri Shankaracharya Institute of Management & Technology and as a part of my
curriculum I am conducting project on CUSTOMERS’ PREFERENCE TOWARDS PACKAGED GROCERY PRODUCT.
I would be grateful to you for providing candid response. Your response would be kept strictly confidential &
will be used only for data analysis.
Q) . How much do you consider / prefer followingfactors of Packaged Grocery Product whilepurchasing
it?
Please rank your preference ranking between 1 to 5, where 1 stands for highly disagreed and 5
stands for highly agreed . Mark ( √ ) in the concerned column.
S.
No.
factor
Do not
consider/ not
significant/
not important/
not prefer
1
Little
consider/
significant/
important/
prefer
2
Just
consider/
significant/
important/
prefer
3
Highly
consider/
significant/
important/
prefer
4
More
highly
consider/
significant/
important/
prefer
5
1.
How much do you
prefer availability of
product?
2.
How much do you
prefer quality of product?
3.
How much do you
prefer feasibility of
collection?
4.
How much do you
prefer separation of
product?
5.
How much do you
consider purification of
product?

6.
How much do consider
package size of product?
7.
How much do you
consider brand loyalty?
8.
How much do you
consider convenient?
9.
How much do you
consider Time saving?
10) Your suggestion ( if any ): ………………………………………......................
………………………………………………………
Personal Details:
Name: ………………………………………………………..
Gender: Male  Female 
Age group (in year): a) <=15  b) 16 – 25 
c) 26 – 35  d) >35 
Marital Status: Married  Unmarried 
Occupation: a) Student  b) Service Person/ professional 
c) House Hold  d) Businessman 
Monthly Income: a) 0000 – 9999  b) 10000 – 19999 
c) 20000 – 29999  d) 30000 – above 

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