STUDY ON CONSUMER PREFERENCE OF CONFECTIONERY GOODS AT DUTY FREE SHOP

COCHIN INTERNATIONAL AIRPORT LIMITED, NEDUMBASSERY

Submitted to University of Kerala in partial fulfillment of the requirements for the award of degree of Masters of Business Administration

By SAREENA IKBAL Reg No: 586

Under the guidance of Dr. VINITH KUMAR NAIR Assistant Professor-Marketing

T.K.M. INSTITUTE OF MANAGEMENT, KOLLAM Musaliar Hills, Karuvelil P.O., Kollam-691505

2008-2010

DECLARATION
I do hereby declare that the project entitled Study on consumer preference of confectionery goods at Duty Free Shop, in Cochin International Airport Limited , Nedumbassery is a bona fide work done by me under the supervision of Dr. Vinith Kumar Nair, Assistant Professor, T.K.M institute of Management Kollam and submitted to Kerala University in partial fulfillment of the requirements for the award of Masters Degree in Business Administration.

Place: Date:

Sareena Ikbal

ACKNOWLEDGEMENT
First and fore most I thank GOD almighty for his blessings for the successful completion of this work. I take the opportunity to acknowledge my indebtedness to all the persons who have helped me in successful completion of my work.

I expressed my sincere and heartfelt thanks to Mr A.M.Shabeer Head- HR, Cochin International Airport limited (CIAL) for allowing me to do the project.

I wish to extend my deepest gratitude to my project guide Mr. Jacob T. Abraham, ManagerRetail CIAL, whose dedicated encouragement and whole hearted co-operation have helped me to complete this project and also Mr.Sreejith T.K, Sales Manager-Retail CIAL, for the sincere co-operation and encouragement during all stages of the project work.

I take this privilege to express my profuse thanks to our Director Dr .S Kevin for permitting me to undergo this project work.

It is my privilege to express my sincere thanks to Dr. Vinith Kumar Nair, Assistant Professor for the necessary guidance in conducting this study.

Finally I wish to thank my friends and parents and express my sincere gratitude to them for their support the eternal love, guidance, protection and blessings those have showered upon throughout the endeavour.

CONTENTS
EXECUTIVE SUMMARY CHAPTER 1: INDUSTRY AND COMPANY PROFILE
1.1 Industry profile 1.2 Company profile 2 10
1

CHAPTER 2: LITERATURE REVIEW

2.1 Background of the study 2.2 Literature review 18 23

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Objectives of the study 3.2 Scope of the study 3.3 Methodology 3.4 Limitation of the study 31 31 31 35

CHAPTER 4: DATA ANALYSIS

4.1 Overview of Response 4.2 In-Depth Analysis 36 51

CHAPTER 5
5.1 Findings 92

CHAPTER 6
6.1 Suggestions 6.2 Conclusion 96 97

BIBLIOGRAPHY APPENDIX

98

101

LIST OF TABLES
Table 4.1 Gender Table 4.2 Age Table 4.3 Occupation Table 4.4 Frequency of visit to Cochin Table 4.5 Frequency of visit to Cochin Duty Free Shop Table 4.6 Products preferred from Cochin duty free shop Table 4.7 Average amount spent on products preferred Table 4.8 Reasons for purchasing confectionery products Table 4.1.9 Factors influencing purchase of confectionery at Cochin Duty Free 36 37 38 39 40 41 42 43 44

Table 4.1.10 Type of confectionery preferred

45

Table 4.1.11 Total score on reasonable pricing of confectionery at Cochin Duty Free Shop 46 Table 4.1.12 Ranking of the confectionary brands by the passengers 47

Table 4.1.13 Promotional preference of customers Table 4.1.14 Satisfaction of Services Table 4.1.15 Total Score on preference by customers to receive information Table 4.2.1.1.1 Cross tabulation for liquor by gender Table 4.2.1.1.2 Chi-square test for liquor and gender Table 4.2.1.2 Cross tabulation for perfume by gender Table 4.2.1.2.2 Chi-square test for perfume and gender Table 4.2.1.3.1 Cross tabulation for supermarkets by gender Table 4.2.1.3.2 Chi-square test for supermarket and gender Table 4.2.1.4.1 Cross tabulation for tobacco by gender Table 4.2.1.4.2 Chi-square test for tobacco and gender Table 4.2.1.5.1 Cross tabulation for tobacco by gender Table 4.2.1.5.2 Chi-square test for electronics and gender Table 4.2.2.1.1 Cross tabulation for liquor by age Table 4.2.2.1.2 Chi-square test for liquor and age Table 4.2.2.2.1 Cross tabulation for perfume by age Table 4.2.2.2.2 Chi-square test for perfume and age Table 4.2.2.3.1 Cross tabulation for supermarkets by age

48 49 50 51 52 52 53 53 54 54 55 55 56 57 57 58 58 59

Table 4.2.2.2.2 Chi-square test for supermarket and age Table 4.2.2.4.1 Cross tabulation for tobacco by age Table 4.2.2.4.2 Chi-square test for tobacco and age Table 4.2.2.5.1 Cross tabulation for tobacco by gender Table 4.2.2.5.2 Chi-square test for electronics and age Table 4.2.3.1.1 Cross tabulation for liquor by occupation Table 4.2.3.1.2 Chi-square test for liquor and occupation Table 4.2.3.2.1 Cross tabulation for perfume by occupation Table 4.2.3.2.2 Chi-square test for perfume and occupation Table 4.2.3.3.1 Cross tabulation for supermarkets by occupation Table 4.2.3.3.2 Chi-square test for supermarket and occupation Table 4.2.3.4.2 Chi-square test for tobacco and occupation Table 4.2.3.4.1Cross tabulation for electronics by occupation Table 4.2.3.5.2 Chi-square test for electronics and occupation Table 4.2.4.1.1 Cross tabulation for amount spent on confectionery by gender Table 4.2.4.1.2 Chi-square test for amount spent on confectionery and gender Table 4.2.4.2.1 Cross tabulation for amount spent on liquor by gender Table 4.2.4.2.2 Chi-square test for amount spent on liquor and gender Table 4.2.4.3.1 Cross tabulation for amount spent on perfume by gender Table 4.2.4.3.2 Chi-square test for amount spent on perfume and gender Table 4.2.4.4.1 Cross tabulation for amount spent on supermarkets by gender Table 4.2.4.4.2 Chi-square test for amount spent on supermarket and gender Table 4.2.4.5.1 Cross tabulation for amount spent on tobacco by gender Table 4.2.4.5.2 Chi-square test for amount spent on tobacco and gender Table 4.2.6.6 Cross tabulation for amount spent on electronics by gender Table 4.2.4.6.2 Chi-square test for amount spent on electronics and gender Table 4.2.5.1.1 Cross tabulation for amount spent on confectionery by age Table 4.2.5.1.2 Chi-square test for amount spent on confectionery and age Table 4.2.5.2 Cross tabulation for amount spent on liquor by age Table 4.2.5.1.2 Chi-square test for amount spent on liquor and age Table 4.2.5.3.1 Cross tabulation for amount spent on perfume by age Table 4.2.5.3.2 Chi-square test for amount spent on perfume and age Table 4.2.5.4.1 Cross tabulation for amount spent on supermarkets by age Table 4.2.5.4.2 Chi-square test for amount spent on supermarket and age

59 60 60 61 61 62 63 63 64 64 65 66 66 67 68 69 69 70 70 71 71 72 72 73 73 74 75 76 76 77 77 78 78 79

Table 4.2.5.5.1 Cross tabulation for amount spent on tobacco by age Table 4.2.5.5.2 Chi-square test for amount spent on tobacco and age Table 4.2.5.6.1 Cross tabulation for amount spent on electronics by age Table 4.2.5.6.2 Chi-square test for amount spent on electronics and age Table 4.2.6.1.1 Cross tabulation for amount spent on confectionery by occupation Table 4.2.6.1.2 Chi-square test for amount spent on confectionery and occupation Table 4.2.6.2.1 Cross tabulation for amount spent on liquor by occupation Table 4.2.6.2.2 Chi-square test for amount spent on liquor and occupation Table 4.2.6.3.1 Cross tabulation for amount spent on perfumes by occupation Table 4.2.6.3.2 Chi-square test for amount spent on perfumes and occupation Table 4.2.6.4.1 Cross tabulation for amount spent on supermarkets by age occupation Table 4.2.6.4.2 Chi-square test for amount spent on supermarkets and occupation Table 4.2.6.5.1 Cross tabulation for amount spent on tobacco by occupation Table 4.2.6.5.2 Chi-square test for amount spent on tobacco and occupation Table 4.2.6.6.1 Cross tabulation for amount spent on electronics by occupation Table 4.2.6.6.2 Chi-square test for amount spent on electronics and occupation Table 4.2.7 Weighted average of factors Table 4.2.8 Weighted Average of promotional preferences of customers Table 4.2.9 Weighted average of satisfaction level

79 80 80 81 82 83 83 84 84 85 85 86 86 87 87 88 88 89 90

LIST OF FIGURES

Fig 4.1.1 Gender Fig 4.1.2 Age Fig 4.1.3 occupation Fig 4.1.4 Frequency of visit to Cochin Fig 4.1.5 Frequency of visit to Cochin Duty Free Shop Fig 4.1.6 Products preferred from Cochin Duty Free Shop Fig 4.1.7 Reasons for purchasing confectionery goods Fig 4.1.8 Factors influencing purchase of confectionery at Cochin Duty Free Fig 4.1.9 Types of confectionery preferred

36 37 38 39 40 41 43 44 45

Fig 4.1.10 Total score on reasonable pricing of confectionery at Cochin Duty Free Shop 46 Fig 4.1.11 Promotional preference of customers Fig 4.1.12 Satisfaction of Services Fig 4.1.13 Preference of receiving information Fig 4.2.1 Weighted average of factors Fig 4.2.2 Weighted average of Promotional preference of customers Fig 4.2.3 Weighted average of satisfaction level 48 49 50 89 90 91

EXECUTIVE SUMMARY
India offers phenomenal opportunities for air retailers. It is fast becoming a key market in global
airport retailing with investment from international airport operators. India's emerging middle class,

strong consumer culture and rising number of people flying both domestically and internationally will drive growth. The Study on consumer preference of confectionery goods at Cochin Duty Free Shop was done for Cochin Duty Free Shop at Cochin International Airport Limited. Cochin International Airport Limited (CIAL) has been a pioneer in India in the field of airport privatization. The Cochin Duty Free of the CIAL showcases an exclusive line of brand name merchandise in addition to the top names in specialty and gift items. The broad objective was to understand the consumer preference in purchasing confectionery goods at Cochin Duty Free Shop. The methodology included collection of primary data and secondary data. Questionnaire is used to collect data from passengers visiting the Duty Free at the arrival terminal.

The study results show that consumers are mainly influenced by the price of the confectionery goods. It also shows the buying pattern of customers. The customers buy products for gifting friends and prefer candies to chocolate bars and gift packs. They also prefer discounts and value adding promotions on confectionery goods.

The study can suggest measures to influence the buying behavior of the passengers like licensing agreement with the suppliers to develop products exclusive for traveling customers, promotion through ads that can be only find while travelling etc.

CHAPTER 1 INDUSTRY AND COMPANY PROFILE

1.1Industry profile
Wright Brothers successfully laid down the beginning of modern a travel, since then aviation has undergone various changes. An airport is a location where aircraft such as fixed-wing aircraft, helicopters, and blimps takeoff and land. Aircraft may be stored or maintained at an airport. An airport consists of at least one surface such as a runway for a plane to take off and land, a helipad, or water for takeoffs and landings, and often includes buildings such as control towers, hangars and terminal buildings. Larger airports may have fixed base operator services, seaplane docks and ramps, air traffic control, passenger facilities such as restaurants and lounges, and emergency services. A military airport is known as an airbase or air station. The terms aerodrome, airdrome, airfield, and airstrip may also be used to refer to airports. The title of "world's oldest airport" is given to College Park Airport in Maryland, US, established in 1909 by Wilbur Wright, is generally agreed to be the world's oldest continually operating airfield, although it serves only general aviation traffic. Al Maktoum International Airport is a major new airport currently under construction in Jebel Ali, Dubai, United Arab Emirates. It will be the main part of Dubai World Central, a planned residential, commercial and logistics complex scheme. World Central is the world's first truly integrated logistics platform, with most transport modes, logistics and value added services, including manufacturing and assembly, in a single bonded and Free Zone environment When completed as planned, the airport will have an annual cargo capacity of 12 million tons, more than three times that of Memphis International Airport, today's largest cargo hub, and a passenger capacity between 120 million and 150 million per year more than HartsfieldJackson Atlanta International Airport (90 million in 2008), currently the world's busiest passenger airport.

The worlds five busiest airports are 1. Hartsfield-Jackson Atlanta International Airport Georgia, United States 2. OHare International Airport Chicago, Illinois, United States 3. London Heathrow Airport United Kingdom 4. Tokyo International Airport Japan 5. Beijing Capital International Airport China In India civil aviation is under the preview of Department of Civil Aviation, a part of the ministry of the civil aviation and tourism.

1.1.1 Civil Aviation in India

Aviation Industry in India is one of the fastest growing aviation industries in the world. With the liberalization of the Indian aviation sector, aviation industry in India has undergone a rapid transformation. From being primarily a government-owned industry, the Indian aviation industry is now dominated by privately owned full service airlines and low cost carriers. Private airlines account for around 75% share of the domestic aviation market. Earlier air travel was a privilege only a few could afford, but today air travel has become much cheaper and can be afforded by a large number of people. The origin of Indian civil aviation industry can be traced back to 1912, when the first air flight between Karachi and Delhi was started by the Indian State Air Services in collaboration with the UK based Imperial Airways. It was an extension of London-Karachi flight of the Imperial Airways. In 1932, JRD Tata founded Tata Airline, the first Indian airline. At the time of independence, nine air transport companies were carrying both air cargo and passengers. These were Tata Airlines, Indian National Airways, Air service of India, Deccan Airways, Ambica Airways, Bharat Airways, Orient Airways and Mistry Airways. In early 1948, Government of India established a joint sector company, Air India International Ltd in collaboration with Air India (earlier Tata Airline) with a capital of Rs 2 crores and a fleet of three Lockheed constellation aircraft. The inaugural flight of Air India International Ltd took off on June 8, 1948 on the Mumbai-London air route. The Government nationalized nine airline companies vide the Air Corporations Act, 1953. These governmentowned airlines dominated Indian aviation industry till the mid-1990s. In April 1990, the Government adopted open-sky policy and allowed air taxi- operators to operate flights from any airport, both on a charter and a non charter basis and to decide their own flight schedules,

cargo and passenger fares. As part of its open sky policy in 1994, the Indian Government ended the monopoly of IA and AI in the air transport services. Private operators were allowed to provide air transport services. However, no foreign airline could directly or indirectly hold equity in a domestic airline company. By 1995, several private airlines had ventured into the aviation business and accounted for more than 10 percent of the domestic air traffic. Today, Indian aviation industry is dominated by private airlines and these include low cost carriers, who have made air travel affordable. India's first civil aviation airport, now known as the Juhu aerodrome, is located just ahead of the Nanavati Hospital on one of suburban Mumbai's arterial roads. When it first opened its gates in 1928, it was known as the Vile Parle Flying Club. The first civil flight that took off from this airport was fittingly piloted by J R D Tata the father of Indian civil aviation. The flight, part of the Tata Aviation Service, the forerunner to Tata Airlines and Air India departed from the Drigh Road airstrip, Karachi, on October 15, 1932. After a stopover at Ahmedabad it landed at the Juhu Aerodrome to complete India's first civil flight. Juhu Aerodrome served as the city's sole airport for 26 years. Today, the aerodrome, which has one runway, hosts a flying club and a heliport. It is occasionally used for shoots by the Mumbai film industry.

Airports Authority of India (AAI)

Airports Authority of India (AAI) was constituted by an Act of Parliament and came into being on 1st April 1995 by merging erstwhile National Airports Authority and International Airports Authority of India. The merger brought into existence a single Organization entrusted with the responsibility of creating, upgrading, maintaining and managing civil aviation infrastructure both on the ground and airspace in the country.

AAI manages 125 airports, which include 11 International Airport, 08 Customs Airports, 81 Domestic Airports and 28 Civil Enclaves at Defense airfields. AAI provides air navigation services over 2.8 million square nautical miles of air space. During the year 2008- 09, AAI handled aircraft movement of 1306532 Nos. [International 270345 & Domestic 1036187],

Passengers handled 44262137 Nos. [International 1047614 & Domestic 33785990] and the cargo handled 499418 tones [International 318242 & Domestic 181176]. The functions of AAI are as follows: 1. Passenger facilities The main functions of AAI inter-alia include construction, modification & management of passenger terminals, development & management of cargo terminals, development & maintenance of apron infrastructure including runways, parallel taxiways, apron etc., Provision of Communication, Navigation and Surveillance which includes provision of DVOR / DME, ILS, ATC radars, visual aids etc., provision of air traffic services, provision of passenger facilities and related amenities at its terminals thereby ensuring safe and secure operations of aircraft, passenger and cargo in the country. 2. Air Navigation Services In tune with global approach to modernization of Air Navigation infrastructure for seamless navigation across state and regional boundaries, AAI has been going ahead with its plans for transition to satellite based Communication, Navigation, Surveillance and Air Traffic Management. A number of co-operation agreements and memoranda of co-operation have been signed with US Federal Aviation Administration, US Trade & Development Agency, European Union, Air Services Australia and the French Government Co-operative Projects and Studies initiated to gain from their experience. Through these activities more and more executives of AAI are being exposed to the latest technology, modern practices & procedures being adopted to improve the overall performance of Airports and Air Navigation Services.

3. Security The continuing security environment has brought into focus the need for strengthening security of vital installations. There was thus an urgent need to revamp the security at airports not only to thwart any misadventure but also to restore confidence of traveling public in the security of air travel as a whole, which was shaken after 9/11 tragedy. With this in view, a number of steps were taken including deployment of CISF for airport security, CCTV surveillance system at sensitive airports, latest and state-of-the-art X-ray baggage inspection

systems, premier security & surveillance systems. Smart Cards for access control to vital installations at airports are also being considered to supplement the efforts of security personnel at sensitive airports. 4. Aerodrome Facilities In Airports Authority of India, the basic approach to planning of airport facilities has been adopted to create capacity ahead of demand in our efforts. Towards implementation of this strategy, a number of projects for extension and strengthening of runway, taxi track and aprons at different airports has been taken up. Extension of runway to 7500 ft. has been taken up to support operation for Airbus-320/Boeing 737-800 category of aircrafts at all airports. 5. HRD Training A large pool of trained and highly skilled manpower is one of the major assets of Airports Authority of India. Development and Technological enhancements and consequent refinement of operating standards and procedures, new standards of safety and security and improvements in management techniques call for continuing training to update the knowledge and skill of officers and staff. For this purpose AAI has a number of training establishments, viz. NIAMAR in Delhi, CATC in Allahabad, Fire Training Centers at Delhi & Kolkata for in-house training of its engineers, Air Traffic Controllers, Rescue & Fire Fighting personnel etc. NIAMAR & CATC are members of ICAO TRAINER programme under which they share Standard Training Packages (STP) from a central pool for imparting training on various subjects. Both CATC & NIAMAR have also contributed a number of STPs to the Central pool under ICAO TRAINER programme. Foreign students have also been participating in the training programme being conducted by these institutions. 6. IT Implementation Information Technology holds the key to operational and managerial efficiency, transparency and employee productivity. AAI initiated a programme to indoctrinate IT culture among its employees and this is most powerful tool to enhance efficiency in the organization.

Existing position of AAI 1. There are 449 airports/airstrips in the country. Among these, the AAI owns and manages 5 international airports, 87 domestic airports and 28 civil enclaves at Defense airfields and provides air traffic services over the entire Indian airspace and adjoining oceanic areas. 2. In 1998-99, these 120 airports/civil enclaves handled 4.20 lakh aircraft movements involving 24.17 million domestic and 12.83 million international passengers and 221 thousand metric tons of domestic cargo and 468 thousand metric tons of international cargo. 51 percent of traffic was handled at the international airports at Mumbai and Delhi. Presently various airlines are operating only through 61 airports. The remaining are lying unutilized at best handling occasional aircraft operations. 3. The turnover of the Authority was Rs.1591.27 crores for the year ended March, 1999 and under audit figure of the Post Tax Profits for the year ended is Rs.208.41 crores as against Rs.196.14 crores for the year ended March, 1998. Classification of Airports Presently the airports are classified as: 1. International Airports These are declared as international airports and are available for scheduled international operations by Indian and foreign carriers. Presently, Mumbai, Delhi, Chennai, Calcutta and Thiruvananthapuram are in this category. 2. Domestic Airports: a. Customs Airports with limited international operations: - These have customs and immigration facilities for limited international operations by national carriers and for foreign tourist and cargo charter flights. These include Bangalore (CE), Hyderabad, Ahmedabad, Calicut, Goa (CE), Varanasi, Patna, Agra (CE), Jaipur, Amritsar, Tiruchirapally, Coimbatore, Lucknow. b. Model Airports:- These domestic airports have minimum runway length of 7500 feet and adequate terminal capacity (400 passengers or more) to handle Airbus 320 type of aircraft.

These can cater to limited international traffic also, if required. These include Bhubaneswar, Guwahati, Nagpur, Vadodara, Imphal and Indore. Rest 6 Nos. of airports, developed under Model Airports concept have graduated to the classification of Customs Airports, given above. c. Other Domestic Airports: - All other 71 domestic airports are covered in this category. d. Civil Enclaves in Defense Airport: - There are 28 civil enclaves in Defense airfields. Twenty civil enclaves are in operation.

1.1.2 Privatization of Airports

The airport industry is going through an exceptional transformation that has driven the market towards increasing levels of competition. Additionally, major investment programs are required to meet the expected growth in air travel demand (particularly in some emerging regions, such as Asia). Nevertheless, governments and city airport authorities are becoming more reluctant to support airport projects, since they have major budgetary constraints. Airports and airlines have historically been considered as essential components of the national aviation system, and hence both were regarded as public utilities. Due to this approach, operational and handling activities were contemplated as being fundamental for the development of the airport business, and commercial activities had a less important role to play. For that reason, airport assets and property have always been publicly managed and commercial activities have occasionally been contracted or outsourced to private companies. Within such a framework, economic regulation was seen as superfluous. The traditional airport management model becomes visibly unsustainable when most governments begin to be concerned about the burden of airport financing and its lack of efficiency. However, for many years, a majority of airports around the world have continued to operate under this model and some still remain attached to it. Since the 1980s, the industry started to evolve with changes being brought about in the traditional airport management model. Currently, governments are progressively regarding airports as potential profit-making enterprises. There are three main potential economic gains obtained from privatization, namely improvements in operating efficiency (the private for-profit business model more often leads to a further exploration for means to cut costs and boost revenues than public management),

the introduction of new management styles and marketing skills directed to serve users with a more consumer-oriented approach, and better investment decisions.

Until 1997 there was a bar on privatization in Indian airport sector. By the year government realized the importance of combining public and private resources to meet the costs involved in developing Indias airports to keep pace with the growth in air traffic. Government then took the positive steps to open up existing airports to domestic and foreign private investors by passing enabling legislation. As the government recognized the need to bring airport infrastructure to world class levels and also its inability to bring in the required capital, Public Private Partnership was identified as a preferred route to infrastructure provision. The phenomenal growth of cities like Bangalore and Hyderabad further accelerated the process. Hence, Greenfield airports at these cities are being built through this route. The control lies jointly with the private sector and the government. The RNFC (Route Navigation and Facilitation Charges) accrue to AAI as it manages Air Traffic Control. Cochin International Airport Limited (CIAL) in Kerala has been a pioneer in India in the field of airport privatization. At present, it is the only private sector airport in the country. CIAL merits special attention as the financing, control and operation of the same are very unique.

The need for the airport was felt when the existing civil enclave at Cochin was inadequate to handle the growing traffic; mainly comprising of frequent NRI (Non Resident Indians) travelers from the Gulf. The government did not have enough funds for the same. This led to the formation of a private company that took the initiative to raise the requisite money from a number of NRI shareholders and a number of private companies (in exchange for exclusive rights to provide services at the airport, for example Indian Oil,). The company also negotiated complex dealings for land requisition and building the airport. Even though CIAL has been commissioned on a BOO basis, AAI still manages Air Traffic Control at the Airport and RNFC accrues to AAI. The government is still in a learning mode as far as airport infrastructure provision is concerned. It has experimented with BOO in the past through the Cochin Airport and recently with 30 year concessions for Delhi and Mumbai Airports. It will be interesting to see how the government balances the expectations of its coalition partners and at the same time ensure

efficient and world class airports for its populace. The good news is that the government realizes the opportunity and is prepared for taking decisive decisions for the same. The future growth and performance of airports will depend to a large extent on the political will and the ability of the government to garner support for the ongoing initiative.

1.2 Company Profile

Cochin International Airport Limited (CIAL)
1.2.1 About CIAL
Cochin International Airport, wholly managed and operated by Cochin International Airport Limited (CIAL), offers convenience, comfort and quality service to ensure passengers travel experience is pleasant and on par with International standards. Cochin International Airport Limited (CIAL) was incorporated as a Public Limited Company under the Companies Act, 1956 on 30 March 1994. With equity participation from the Government of Kerala, Industrialists, NRIs, Financial Institutions, Airport Service Providers and the Public, the Cochin International Airport Limited (CIAL) has come to be a model enterprise with the first International Airport in India outside the ambit of the Government of India, the first of its kind in the history of civil aviation in India. This is the first international airport in India to be built with only a minority (13%) Central Government stake in a publicprivate partnership (PPP) project. The total governmental stake (central & state), is thus 26%. The airport is the primary base for Air India Express operations. It is the fourth busiest airport in India in terms of international traffic and is the busiest airport in Kerala in terms of domestic and international traffic. Cochin International Airport is located about 30 km (19 mi) from the central city area of Kochi, and amenities such as pre-paid taxis are readily available. Its location near tourist areas and the availability of undeveloped land near the location provides opportunity for growth in the region. This has helped to make it the busiest airport in Kerala. With a 3,400 m (11,200 ft) long runway, the airport is equipped to operate any type of aircraft currently in commercial service. At present, it is the fourth busiest Indian airport in international traffic. There are 464 services in the domestic sector and 314 services in the

international sector in Kochi per week. It has a full length parallel taxiway of 3,400 m (11,200 ft). The runways are spread over the panchayats, or local administration areas, of Nedumbasserry, Sreemoolanagaram and Kanjoor. The airport has a domestic terminal and an international terminal. The ground control is handled by Air India & WFS and the fuel supply to the airport is by the Bharat Petroleum. Both hold interest-free security deposits in CIAL. The airport company holds 440 acres (1.8 km2) of prime land at its disposal for commercial deployment. A 35-billion-rupee master plan (involving construction of an 18-hole golf course, business centre, hotel chains, malls, industrial and IT parks and logistics centre) has been developed by CIAL to generate revenues. Airport fees for international passengers have been waived and customs processing time is relatively quick. Supplemental revenue is generated from leasing advertisement space within the terminals. The location has been commended for its style and clean image. Highlights First-of-its-kind airport developed under the PPP model, where Airport users (mainly NRI investors) joined hands with the Government of Kerala and the airport service providers to build an International Airport. Spread over 1300 acres - 800 acres utilized for Airport Facilities and 500 acres is planned for Aviation and City Infrastructure. Wide Investor base - 11,000 individual investors from 30 countries. Present employee strength of CIAL is around 500. Commenced operations in 1999.

1.2.2 History
The Cochin International Airport has been envisaged as a State Government sponsored project with public participation mostly from Non Resident Indians (NRI's). With over 10,000 shareholders from 29 countries ready to invest in this project to overcome the operational shortcomings of the existing Naval Airport, and to open up to the growing needs of NRI travellers, tourists, trade and commerce, Cochin International Airport began to take shape. At a meeting convened by representatives of the Government of Kerala, National Airport Authority, GCDA, Navy, Railways, Cochin Port Trust etc. in October 1991, it was decided to pursue the project for construction of the new Airport near Cochin instead of expansion of the existing Naval Airport. The airport site proposed by State Government officials was inspected and found suitable by the Airport Authority of India. The Ministry of Civil Aviation accorded its clearance to the proposal for developing the International Airport put up by the Government of Kerala in March 1993. A world-class airport came into being. The International Airport at Nedumbassery, 25 kms North East of Cochin, is flanked by National Highway 47 and the main Railway line on its left and MC Road to Trivandrum on its right. The airport is spread over an area of 1200 acres. The project was completed at a cost of Rs.303 Crores under the leadership of Mr. V. J. Kurian, IAS. The Airport was formally inaugurated by the Hon'ble President of India on 25 May 1999 and the first Inaugural flight of Air India took off on 10 June 1999. The Air India Jumbo Jet Boeing 747 touched down for the first time in Kerala on 21 June 1999. The Domestic Operation from the Naval Airport was shifted to Cochin International Airport on 01 July 1999.

1.2.3 Future Plans

The main aim of Cochin International Airport Limited (CIAL) is to position itself as a pioneer in Aviation Infrastructure and generate sustainable & profitable revenue streams by establishing a strategic hub in Southern India

 Strategic airport in Southern India providing international connectivity to the Middle

East.

Well networked with Hub Airport through Mumbai to provide connectivity to Europe
and Americas.

Already initiated efforts to enhance connectivity through Chennai, Colombo to Far

East.

Focus on development of aviation infrastructure including Aircraft Maintenance

Centre & Training Academy and Airlines.

Focus on land development to enhance city side infrastructure and to generate nonaero revenues. Proposed Land Use Plan Aviation Activities: Aviation Maintenance Centre Aviation Training Academy

Leisure Activities: Hotel (5 Star & 3 Star Categories Convention Centre & Exhibition Centre Golf Course

Business Activities: Industrial Park catering to IT, ITES, Biotechnology, Gem and Jewellery, and other knowledge based & specialized industries. Integrated Logistics Centre Educational Institutions Specialty Hospital

Entertainment & Cultural Activities:

Multiplexes Hyper Malls/Shopping Mall/Retail Food Court Family entertainment centre and amusement parks Trade and Cultural village 1.2.4 Facilities
1. Passenger terminals

The Cochin International Airport has world-class passenger terminals providing travelfriendly facilities and services to cater to the needs of travellers from world-over. Some of the unique features at the Cochin Airport are: 1,00,000 sq ft. Domestic Terminal. 4,78,000 sq.ft. International Terminal. Indias largest duty free shop (Cochin Duty Free) of 14,000 sq.ft. Dynamically configurable and fully computerized check-in counter displays. Security control system with state-of-the-art closed circuit camera system. Integrated Flight Information Display System (FIDS) and Public Address System. Fire Detection and Control System. Fully computerized prepaid taxi and entry ticketing counters. CUTE System for check in.

The international terminal consists of 478,000 sq ft divided into departure and arrival blocks. Both departure and arrival halls are designed to accommodate 1200 people at any given time. Non passengers can enter into the terminal on payment of Rs 50 for guest tickets. There are 30 computerized CUTE enabled check-in counters including 5 premium check-in. It also has 30 passport control counters, 10 security gates and 5 customs counters. The waiting lounge is located in second floor which is very spacious and large enough to accommodate 1500 passengers at any point of time. There are two premium lounges for first and business class passengers. There are 7 gates with 5 aero-bridges. The departure hall has several money changers, banks counters, medical facilities and offices of various airlines. The arrival hall is equipped with 23 passport control counters and 4 large baggage carousels, 8 red channels and 2 green channels of customs. The arrival hall also has various car-rental counters, hotel reception offices, bank and money changer counters located near the exit. The Domestic terminal consists of 100,000 sq ft divided into two blocks, one for arrival and one for departure. Both departure and arrival blocks are interconnected through a corridor inside. Non-passengers can enter into terminal on purchase of guest ticket. This enables non passengers to accompany passengers upto X-ray screening. The departure hall has 20 checkin counters including 5 premium check-in counters. It also has 5 security gates and a large waiting lounge that can accommodate 400 passengers at a time. There is also a premium

lounge available for business class passengers. The waiting lounge has a family room. The arrival hall has 2 baggage carousel along counters of several tourist operators, hotel reception counters, car-rentals, mobile kiosks and a pre-paid taxi counter. 2. Shopping In pursuit of earning more non-aeronautical revenue, CIAL has set up more shopping facilities. The Duty-free in International terminal is the first full-scale duty free shops in India and one of the largest. The arrival hall has large duty-free shopping area of 13,000 sq ft spread over two floors with large collections of leading liquor brands, perfumes, chocolates, handicrafts, watches, gold, books and electronics. The departure block duty free is under construction, though a last-minute shopping counter of 2000 sq ft, currently functions helping passengers to buy selected liquor, chocolate, perfumes, ethnic handicrafts, spices etc. 3. Food There is a large multi-cuisine restaurant operated by Saj inside departure hall of International terminal. Apart from this, several small cafes and sandwich counters operate in both domestic and international terminal. A large cafe operates in waiting lounge of domestic terminal. A food court is under construction in international terminal. 4. Other facilities Both the terminals are Wi-Fi enabled giving passengers access to complimentary internet, apart from a business center operating in the departure hall of the international terminal. The airport has 7 retiring rooms for transit and early passengers in international terminal which can be booked at terminal manager's office on first-come-first-serve basis. A large child care room is available in the international terminal. Complimentary public telephones for local calls and postal counters are also available. Large plasma televisions have been installed in all waiting lounges for entertainment.

1.2.5 Cochin Duty Free

The Cochin Duty Free showcases an exclusive line of brand name merchandise in addition to the top names in specialty and gift items.

The pride of the shops is the 13000 square foot Arrival Shop, which has a cool ambiance and cheerful customer friendly services. You no longer need to carry the burden of heavy luggage, but can shop everything on arrival. We also have a beautiful 2000 square foot Departure Shop, which displays an array of unique traditional collections of Kerala, which will offer an exciting experience for international travelers. At Cochin Duty Free, claim huge savings on wine, spirits, and beer. Chill out the best brands of liquor that include Johnnie Walker, William Grants, Chivas Regal, Remy Martin, Bacardi Rum, Smirnoff Vodka, Heineken Lager and many more at coolest prices. Passengers can also enjoy savings on Tobacco. Cochin Duty Free carry the best cigarette brands like Benson & Hedges, Marlboro, State Express and Dunhill . Find your favorite scent in Cochin Duty Free's vast selection of fragrances and cosmetics such as Elizabeth Arden, L'Oreal, Christian Dior, Estee Lauder, Lancome, Armani, Givenchy, YSL and Paco Rabanne. There is a fabulous collection of watch brands like Alba, Civic, Kolber, Seiko, Westar etc. Also don't miss the wide array of delicious, confectionery and gourmet items Toblerone, Kitkat, Mars, Cadbury's and Ferrero Rocher. The confectioneries are available in box chocolates, chocolate nuts, gift packs, chocolate bars and candies. Cochin Duty Free Highlights World Class Duty Free Shopping Facilities CIAL partnered M/s. Alpha to manage duty free operations Heavenly shopping experience at down to earth prices.( Lowest prices in the region) Two beautiful shops with cool ambience and cheerful customer friendly services. 13,900 square foot Arrival shop 5000 square foot Departure shop- with unique traditional collections of Kerala, which will offer an exciting experience for international travellers. This is a spacious store to ensure leisure shopping experience.

Location There are two Duty Free Shops at Cochin International Airport. The biggest shop (13,000 sqft) is located in the Arrival Section of the International Terminal. This is for the Arriving Passengers from other destinations. The other shop is located in the Departure Area of the International Terminal. This shop is meant for the passengers flying from Cochin.

Product categories available It offers an exclusive line of branded merchandise in 9 product categories Confectionery Liquor Perfumes and cosmetics Souvenirs Supermarket Tobacco Toys Gold Electronics

CHAPTER 2 LITERATURE REVIEW

2.1 Background of the study Consumer Behaviors and Preference

Leon G Schiffman and Leslie lazar Kanuk(2009)Consumer behavior is the study of how individuals, groups and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. Blackwell (2001) defines consumer behavior as the activities people undertake when consuming, and disposing of products and services. There are several activities included in this definition of consumer behavior. Proctor et al. (1982) noted that the principal aim of consumer behavior analysis is to explain why consumers act in particular ways under certain circumstances. It tries to determine the factors that influence consumer behavior, especially the economic, social and psychological aspects which can indicate the most favored marketing mix that management should select. Consumer behavior analysis helps to determine the direction that consumer behavior is likely to make and to give preferred trends in product development, attributes of the alternative communication method etc. consumer behaviors analysis views the consumer as another variable in the marketing sequence, a variable that cannot be controlled and that will interpret the product or service not only in terms of the physical characteristics, but in the context of this image according to the social and psychological makeup of that individual consumer (or group of consumers). Economic theory has sought to establish relationships between selling prices, sales achieved and consumers income, similarly, advertising expenditure is frequently compared with sales. On other occasions financial accounting principles maybe applied to analyze profit and losses. Management ratios, net profit before tax, liquidity and solvency ratios can all be investigated. Under the situations the importance of the consumer's motivations, perceptions, attitudes and beliefs are largely ignored. The consumer is assumed to be "rational" that is, to react in the direction that would be suggested by economic theory and financial principles. However, it is often apparent that consumer behaviors do not fall neatly into these expected patterns. It is for this reason that consumer behavior analysis is conducted as yet another tool to assess the complexities of marketing operations. There are four main applications of consumer behavior:

The most obvious is for marketing strategyi.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements

late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and only spread later, and then only gradually, to the rest of the population, we learn that (1) Companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) It is important to please initial customers, since they will in turn influence many subsequent customers brand choices. A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Accutane resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, a number still became pregnant while taking the drug. To get consumers attention, the Federal Drug Administration (FDA) took the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the Centers for Disease Control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic. As a final benefit, studying consumer behavior should make us better consumers. Common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain. There are several units in the market that can be analyzed. Our main thrust in this course is the consumer. However, we will also need to analyze our own firms strengths and weaknesses and those of competing firms. Suppose, for example, that we make a product aimed at older consumers, a growing segment. A competing firm that targets babies, a

shrinking market, is likely to consider repositioning toward our market. To assess a competing firms potential threat, we need to examine its assets (e.g., technology, patents, market knowledge, awareness of its brands) against pressures it faces from the market. Finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, a recession may cut demand dramatically. Consumer behavior research enables better understanding and forecasting not only of the subject of purchases but also of purchasing motives and purchasing frequency (Schiffman, Kanuk 2004). One of the present fundamental presumptions for the consumer behavior research is the fact, that people often buy products not because of their main function but for their subjectively perceived value. It does not mean that products' basic function is not important, but that the today's role of product exceeds its service limits (Salomon 2004). Even more often consumers do not rate products according to their cores (it means the main the main utility provided) but above all according to so-called real product (it means the particular products' qualities) and the extended product, which represents the set of intangible factors bringing the demanded perceived advantage to consumer - image, consultancy, aftersale service and other (Foret, Prochazka 2007). Trommsdorff (2002) however warns of that there are no activities more important for the consumer behavior research, connected with consumption, than the personal characteristics. According to him the term "consumer" (Konsument) is being used instead of a more accurate one "target customer", and also the term "consumer behavior" (Konsumentenverhalten). This conception causes problems afterwards because it must comprehend more personal roles decision maker, buyer and consumer. Except the conventional conception of consumption being the only instrument of the basic needs' satisfaction, Solomon (2004) identifies another four different types of consumers' activities: consumption as an experience (emotive or aesthetic reaction to product consumption) consumption as an instrument of integration (usage and consumption of the product integrates us somehow to the society) consumption as a classification scale (choice of products influences the way how we are perceived by our environment and how we are ranged in the society) consumption as a game.

There are a lot of factors influencing consumer by decision-making process. The literature classifies and structures these factors in various ways. For example division into inner and outer factors (Koudelka 1997), distinguishing three basic categories: personal, psychological and social factors (Brown 2006), to which Kotler (2001) adds the cultural factors as the independent category. The next group of factors can be labelled as situational factors, it means factors forming the environment of the concrete decision-making situation. Because the subject of the analysed inquiry are factors belonging to groups of personal, psychological and situation factors, in the hereafter text the attention is devoted only to them. As a personal factors, there are referred the ones unique for each consumer. Above all data like age, sex, place of domicile, occupational and economic conditions, personality and self consciousness can be found here (Horska, Sparke 2007) Psychological factors include motivation, perception, skills and knowledge, positions, personality, style of life (Brown 2006). Perception means the adaption of reality. The process of selection, processing and interpretation of input data from the environment to make them purposeful (Brown 2006). Personality is created by inner characteristics and by behavior. This makes a person unique. Personal characteristics influence the way how people behave. It is, however, difficult to find a reliable connection between the individual personality and the behavior type. Consumers' skills and knowledge are connected to learning and predestinate changes of behavior. Therefore to cause changes of consumer behavior concerning the concrete product, it is necessary to give the adequate information. Learning process can come through a simple association between the impulse and the reaction to it, or through the complicated set of rational activities. Motive means the inner driving force that orients human/consumers' activities towards meeting the needs or achievement of the definite aim. In every decision-making process several motives plays role, not only one. In case of need of measuring or analyzing, there is one questionable thing that motives often work only on the subconscious level (Brown 2006). Knowledge and positive or negative feelings influence humans' perception and consequently decision making and behavior. People learn their bearings through experience and interaction with other people. The eventual changes of positions are conditioned by consumers' personality and his style of life. Consumer generally refuses information that is in conflict with his positions, eventually he modifies them to reach correspondence.

Situational factors can notably influence purchase decision. Social environment, physical environment of the purchase place, time influences and the previous states fall into this group. (Berkowitz et al. 1992; Vysekalova 2004; Nagyova 2001a). Consumers' decision includes the product (brand) selection from the set of possibilities. Selection based on stimulation means selection whereat we can directly compare products, because they are being kept at one's disposal. Selection based on memory means selection whereat we do not have the possibility to directly compare products. Sometimes purchasing public prefers a simple decision making process instead of the complex solution. Decisions are then made only on the basis of a few criteria. Instead of comparing more characteristics, consumer e.g. decides after price criteria (he comes out from the presumption that a higher price means also higher quality). There is quite a number of other heuristics, except the above mentioned relation price quality. Strategies based on positions are called the compensatory strategies, which means that good attributes may compensate worse ones. They suppose that the product/brand associated with mostly favourable positions will be chosen. The application of heuristics based on positions requires a fractional effort. If consumers have not created an attitude towards certain products or brands and are not motivated or able to create their positions, they derive benefits from the decision-making strategy based on the attributes of products or brands. These heuristic strategies are not compensatory because a high score of one attribute cannot compensate a low score on other characteristics. It means that every attribute is compared separately and compromises among the single attributes stay out in consideration. Lexicography heuristics includes the selection of the best brand/product on the basis of its most important attribute. Lexicography multilevel heuristics issues from a similar principle but at the juxtaposition, however, it is taking score in the definite dull interval as a draw and survey on other characteristics. Connecting heuristics includes setting of the minimal acceptable level for each attribute and the choice of first option that meets these minimal levels in all characteristics. Other options then already are not considered. The influence over the approach to solving of the given situation and purchase decisions is excerted also by the variables like involvement and responsibility. Involvement depends on personal significance or the importance given to the decision, the responsibility reflects need to explain or vindicate our decisions before other people. Both these variables escalate

motivation to make a good decision, even if it requested bigger effort and more time. Therefore at the low level of involvement we use rather the easier selection heuristics.

2.2 Literature Review 2.2.1.Shopping Behavior at airport environment

Shopping is considered to be one of the oldest and most important aspects of tourism. For many tourists no trip is complete without having spent time in shops, malls or at local markets (Hudman & Hawkins, 1989; Keowin, 1989). Several authors even believe in the ''urge to shop'' as a motivator to travel (Heung & Qu, 1998; Lundberg, 1976). ''To be able to peruse, to examine, to feel and to think of the joys derived from purchasing certain merchandise is indeed pleasurable to millions of people, and for them it is a minor, if not a major reason for travel'' (Lundberg, 1976). Because of this interrelationship between tourism and shopping, airport policymakers no longer consider the transportation of passengers between one destination and another as the solely purpose of an airport. They believe that an airport can be a leisure attraction and primary destination in its own right (Freathy & O'Connell, 1999). Also retailers realized that waiting passengers could be a lucrative source of revenue and increased their involvement in airports in general and in departure lounges in particular (Rowley & Slack, 1999). Despite these changes dictated by commercial imperatives, airport retailing and its customers remain an under researched and poorly illustrated area of study (Freathy & O'Connell, 1999). For example, the question arises how do travellers perceive this ''airport shopping mall''? More importantly, it is unclear by which shopping motivations airport travellers are driven, as well as what different types of shoppers can be distinguished among travellers at an airport. Sulzmaier, 2001), but either they pertain to home-, clothing or grocery shopping and not to airport shopping or if they do relate to tourism and airports, they only take the motivation for tourism and leisure activities into account.

2.2.1.1 Shopping motivations Airport shopping motivations

Several authors believe that shopping is one of the most popular tourist activities because it satisfies part of people's need for leisure and tourism (Kent, Shock, & Snow, 1983). Shopping is viewed as a form of recreation that provides enjoyment and relaxation (Bussey, 1987;

Gratton & Taylor, 1987; Timothy & Butler, 1995). At an airport, especially holiday or leisure travellers (contrary to business travellers) are motivated for tourism and leisure because they spent most of their time in the terminal (Vester, 1996; Tosic, 1992; Wells, 1986). Tourism and leisure activities are dictated by two motivational structures: (1) the wish to contrast dayto-day or ordinary life routines and (2) the wish to be out-of-place. The break from everyday routine can be reached by dramatizing the ordinary as shopping malls and themed environments. Nowadays, tourist attractions of the past like historical sites, nature and large commercial cities have been taken over by new attractions such as leisure parks and large malls (Urry, 1995; Rojek & Urry, 1997). The airport of Munich, for example, has attracted more tourists than Ludwig's castle Neuschwanstein and is Bavaria's tourist attraction number one (Sulzmaier, 2001).

General shopping motivations

On the basis of an extensive review of general shopping literature Geuens et al. (2002) conclude that in general three different types of shopping motivations can be distinguished: (1) functional motivations, (2) social motivations and (3) experiential or hedonic motivations. Functional motivations pertain to tangible aspects such as product assortment, product quality, convenience, price, etc. (Sheth, 1983; Westbrook & Black, 1985; Shim, Gehrt, & Holikova, 1998; Dholakia, 1999; Geuens et al., 2002). Social motivations reflect the need to communicate with others sharing the same interests, affiliating with peer groups, interactions with salespeople, etc (Tauber, 1972; Reynolds & Beatty,1999; Dholakia, 1999; Geuens et al., 2002). Experiential/ hedonic motivations consist of the need for sensory stimulation, and new or enjoying experiences (Tauber, 1972; Sheth, 1983; Bellenger & Korgaonkar, 1980; Dholakia, 1999; Geuens et al., 2002). The importance of each motive depends on personal (e.g. some people are born to shop while others cannot appreciate it) and situational variables (e.g. time pressure), as well as on the product category sought for (groceries evoke less experiential and hedonic motivations than apparel) and the distribution format chosen (e.g. online versus mall shopping) (Falk & Campbell, 1997; Eastlinck & Fein-berg, 1999; Aylott & Mitchell, 1998; Dholakia, 1999 Van Kenhove, De Wulf, & Van Waterschoot, 1999). Although these general motivations were mainly found in a traditional home-, grocery and apparel situation, there is no reason to assume that these motivations would not be present in an airport environment.

2.2.1.2 Shopping in an airport environment Airport shopping can be considered as a specific type of in-store shopping, where grocery products as well as clothing, are sold next to several other types of products. The most common commercial outlets and activities found at the airport are convenience stores, specialty stores, duty-free shops, food and beverage services, passenger service facilities, leisure facilities and airport advertising or telephone services. However, with a view to maximize the revenues some airports go even further. Schiphol airport (The Netherlands) e.g. provides a casino and imaginary golf facilities, while Changi airport (Singapore) possesses a karaoke, a swimming pool and bathing room in order to increase customer satisfaction, sales of the duty-free and retail shops and the usage of leisure facilities (Kim & Shin, 2001). Therefore, airport shopping can be seen as a mix of grocery, clothing and other types of shopping. Indeed, the airport mall is a specific combination of a wide variety of traditional as well as more exotic stimuli and situations, which may evoke more different motivations than previously were found in an airport context. Next to the motivation to contrast day-to-day routine and the motivation to be out-of-place (which are inherently connected to travelling), more general motivations pertaining to home-, grocery and apparel shopping as well as more specific travel-related motivations may be expected as well.
1.

First of all, an airport can trigger several functional motivations such as a good price,

convinience, product assortment, and quality shopping. Despite the abolition of duty free and tax-free shopping for intra-European flights in 1999, prices at airports are still cheaper than in regular shops (except for liquors, cigarettes and electronics) due to the Travel Value system. Therefore, airport consumers may be price driven. Secondly, the presence of shops at the airport is very convenient for the traveler. It allows him or her to buy food or other travel goods at any time. A third factor is the large and various product assortments, with both international brands and local specialties. As most products are of well-known international brands, quality is usually assured. Qualitatively seen, consumers have more faith in airport products than in products of local souvenir shops. A last determinant is the outstanding service delivered at airport shops: multilingual communication, high speed service, professional advice, etc (Vlitos Rowe, 1999).
2.

Also social motivations can be expected to appear in an airport context: meeting other

people, communicating with others sharing similar interests, affiliating with peer groups, interaction with salespeople, etc. For some people travelling causes feelings of insecurity,

fear or excitement, leading them to search for comforting, reassuring and encouraging behavior from salespeople (Dube & Menon, 2000).
3.

Experiential motivations are mainly of significant importance if travellers are shopping in

function of the surrounding atmosphere and the environment. The conclusions of a multitude of studies on atmospherics point unequivocally to the fact that the atmosphere is often more determining of the purchase decision than the product itself (a.o. Kotler, 1973; Spies, Hesse, & Loesch, 1997; Turley & Milliman, 2000). Moreover, in advanced consumer societies, shopping and strolling around the airport can become a symbolic act, a ritual that gives expression to the consumers self-presentation and self-fashioning. People engaging in those activities may come to the airport to become part of the cosmopolitan flair to be found there. Authenticity is not necessarily what they are looking for, hyper reality and hyper signification can become a more plausible version of reality as the disneyfication of urban and suburban shopping malls and town centers shows (Sulzmaier, 2001). Finally, it has been shown that the use of airport offerings is characterized by impulse purchases (Sulzmaier, 2001), which indicates the influence of the surrounding atmosphere and the environment. 4. Besides functional, social and experiential motivations encountered in traditional in-store shopping situations, airport shopping may elicit travel-related motivations. First, there are the motivations to contrast day-to-day routine and to be out-of place as was discussed earlier. However, these motivations are almost inherent to travelling and can be considered to be present the moment one starts travelling. Nevertheless, other more specific travelrelated motivations may be expected. Several authors agree that the shopping and purchasing habits of a tourist often vary considerably from his/her normal pattern at home (Timothy & Butler, 1995; Brown, 1992). For example, an important difference between a traditional and an airport environment is the waiting time. Waiting travellers shop because they are bored and seek entertainment in shopping (Rowley & Slack, 1999). Another motivation is that travellers leaving a certain country are shopping in order to spend their remaining foreign currencies. Furthermore, the habit of buying souvenirs and presents motivates travellers to shop (Sulzmaier, 2001). A unique duty- and tax-free wrapping, a special design, handy travel sets, additional promotional gadgets and small presents make airport shopping often more desirable and prestigious than shopping in the local souvenir shops. Large international brands design new product lines exclusively for duty- and tax-free shops in order to seduce travellers to buy an unique souvenir (Vlitos Rowe, 1999).

Impulse purchase behavior in airport environment International airports are considered attractive and lucrative retailing centers due to the high guaranteed footfall, high sales per area and the fact that there is what is considered to be a 'captive' audience. This is especially the case with passengers as they are forced to stay in the environment until their flight is called with little or no diversions except to shop. Specifically looking at passengers, airports have a highly defined group of customers in a microenvironment which can be thoroughly researched. Airport flight schedules enable retailers to forecast the nationality, age group and preference of potential customers throughout the day and throughout parts of the terminal adapting the product lines accordingly and allowing marketing activities to be highly targeted (Newman and Lloyd Jones, 1999). Within airport retailing, however, the potential customers are in a unique frame of mind which has an extremely important effect on consumer purchasing behaviour. Lamacraft (1998, p. 44) explains that
'after the pressure of getting to the airport on time most travellers find themselves in limbo, isolated from everyday references, perhaps even notions of day or night.

Thomas (1997) points to two emotional shifts that affect the buying habit. One is an increase in stress levels because consumers are out of their daily routine. The other is an increase in levels of anticipation and excitement. She further reveals that when the passenger gets to the airport and on receipt of their boarding pass, stress levels lower but excitement remains high. She refers to this period of high excitement as the 'happy hour', suggesting that shopping at the airport is all about manipulating this happy hour. When consumers are in an airport environment they do not act as they normally would. Different retail strategies and approaches need to be made to maximise the potential market in the travel retail environment. Omar and Kent (2001) discuss how important the impulse factor is in airport. shopping. They state that understanding and manipulating this factor is vital to performance maximisation in the airport environment. They discovered that consumers variously evaluated different impulse buying situations, when asked to do so, but they do not know how often such behaviour occurs naturally. They recommend that future research should examine more broadly store environments in which these constructs interact.

Behavioral traits of consumers in an airport environment

What is significant to retailers is the thought process that consumers go through before they decide on a certain product including the points at which they are susceptible to marketing

messages. Advertisers recognize that the most important site is just at the point in the checkin area as passengers turn around having completed their check-in. This marks the beginning of the 'golden hour', the period where travellers are in the most relaxed part of their journey and ready to browse or shop in many cases (Newman and Lloyd Jones, 1999). The quantity of reported research in this area is quite limited but there have been a small number of important reports compiled which examine these issues in the airport context, predominantly in the UK. According to Omar and Kent (2001) retailers are increasingly recognising the significant degree to which many airport shoppers are influenced by the airport environment. They conducted a field study in Gatwick Airport using a sample of airport users. Their evidence showed that impulsive shopping at the airport is induced and/or encouraged by both marketing and environmental influences. They showed that 35 per cent of airport users are converted purchasers; however, a total of 65 per cent of users do not visit the shop or browse with no intention of buying. This represents the most important target market and opportunity for airport retailers. The Mintel Report Airport Retailing Review (2000) is one of the few detailed empirical studies on consumer behavior in the airport environment and especially highlights the effects and potential of impulse purchasing in the airport retail environment. The resultant findings summarized in Figures 6 and 7 highlight the potential for retailers and also the significant opportunity for a greater level of impulse sales. Passengers indicated they were more likely to purchase after passing through airport control than before. There was also a readiness among a significant minority of customers to make unplanned or impulse purchases. The study shows that airport retailers have open to them a huge, increasing and highly lucrative customer traffic visiting UK airports. Visitors are likely to be in the upper socioeconomic groups, particularly the more frequent visitors. Once the visitor actually reaches the airport there is significant potential to stimulate impulse purchases through high-impact merchandising and innovative promotion to what is virtually a captive audience. A study conducted by Bowes (2002) shows how stress-reducing design and operational efficiency combine to create a successful commercial environment. He identifies emotion and time as two of the key factors affecting the shopping habits of travellers and visitors to an international airport terminal. In his research in Brisbane International Airport the intentional stress-reducing design, featuring greenery and open space and the operational efficiencies, which deliver lower levels of congestion and queuing, increase passengers' propensity to buy

(Bowes, 2002). He further states that in an airport context the emotional state of the shopper and the time they have available are the two major factors influencing whether they shop and the amount of money they spend. Therefore, airports must be designed in an aesthetically pleasing manner but also be functional. Additionally, operators must work with government agencies and the airlines to reduce processing time of passengers. He concludes that every extra minute that passengers can be saved from waiting in a queue increases their propensity to buy (Bowes, 2002). In the context of the above studies the authors conclude that: Travellers suffer from high levels of excitement and stress simultaneously Operators must strive to reduce the boredom effect There exists a limited window of opportunity, termed the 'happy hour' in which to maximize purchases Retailers must employ a variety of marketing strategies to appeal to the diverse market segments Individual normative traits must be minimized or eliminated.

An example: Nestle confectionery Within travel retail it is widely considered that confectionery is probably the most impulsive category. Industry sources estimate that as much as 70 per cent of sales are impulse-driven purchases. This is also a category that has seen unprecedented annual growth in the travel retail sector, outperforming most other categories. This growth was primarily driven by the aggressive development of the sector within the channel by the major FMCG companies through their recognition and understanding of the buying behavior. Confectionery companies were the pioneers of impulsive purchasing behavior maximization in travel retail. Nestle, which is the world's largest confectionery company, is a prime example. Nestle developed a dedicated division, Nestle International Travel Retail (NITR), to globally handle the development of the travel retail channel. The company developed a portfolio of products through adaptation and development to provide an exclusive travel retail offering. This policy of differentiation has been very successful as: Retailers in travel retail demand much higher margins than the domestic market due to the increased operating costs. Retailers also demand to be more competitive than the domestic market due to the absence of duty and taxes.

Use of travel retail as a brand-building 'shop window' opportunity, maximizing global distribution. Development of impulse-inducing promotional displays. Innovative 'retailtainment' promotions such as the offering of cars, motor bikes, etc, as prizes. Development of customized furniture to increase brand awareness and provoke impulse purchase behavior.

NITR identified three major segments within travel retail to target: Gift giving Sharing/self-consumption Children's products

While the confectionery companies have completed extensive research on buyer behavior in most conceivable channels, eg multiples, confectionery, tobacco and newsagents (CTNs), forecourt retailing etc, they have done little in the travel retail environment except implementation of previously successful impulse strategies. Alan Brennan (NITR Regional Manager Middle East) concedes that their approach, while pioneering within the travel retail context, has still not really got to grips with the differences in the airport environment. They have implemented promotions designed on the basis of impulse purchase behavior traits exhibited in other channels combined with some common sense. The growth of the confectionery category in travel retail has undoubtedly been supplier driven; however, this growth has prompted some but not all operators and retailers to develop other categories that historically have been considered marginal. With the abolition of duty free within the EU retailers are now seriously examining the potential of these 'marginal' departments to try and replace some of the lost revenues from cash cows such as liquor and tobacco.(source: Journal of Consumer Behavior vol 3,1, 2003)

CHAPTER 3 RESEARCH METHODOLOGY

3.1 Objectives of the study

3.1.1 Broad objective of the study To study the consumer preference of the passengers visiting the Cochin Duty Free Shop of Cochin International Airport Limited with respect to confectionery goods. 3.1.2 Specific objectives Understand the taste and preference of the consumers with respect to confectionery goods. Understand the factors that influence a customer to purchase a confectionery good from Cochin duty free. Understand the consumer buying pattern at Cochin duty free.

3.2 Scope of the study

The study will help to understand the preferences of the passengers visiting the Cochin duty free. The study will help the management to take decisions on the promotional schemes to be introduced by the suppliers. The study will further help to understand the buying pattern of passengers that will help to make the decisions.

3.3 Methodology
Methodology is one of the main aspects of every research. This explains how the researcher conducted this project. It includes Research design, Sampling, Sampling methods, Questionnaire design, Pilot survey and Field work procedure. 3.3.1 Research Design Research design is the basic frame work which provides guide lines for the rest of research process. It is a map or blue print according to which the research is to be conducted. A research design is purely and simply the frame work or plan for a study that guides the collection and analysis of data. For the study a descriptive research design is under taken. 3.3.2. Sampling Methods It is incumbent on the researcher to clearly define the target population. There are no strict rules to follow, and the researcher must rely on logic and judgment. The population is defined in keeping with the objectives of the study. a. Universe of the study Universe of the study is all the passengers visiting the Cochin duty free shop of the Airport.

b. Convenience Sampling Its non probability sampling refers to sampling by obtaining units or people who are mostly conveniently available. Researchers usually use convenience samples to obtain completed questionnaire quickly and economically. c. Sample Size Based on the convenient sampling a sample size of 115 was chosen. The survey was conducted among the passengers visiting Duty Free. 3.3.3 Research Approach The research approach is survey.

3.3.4 Research Instruments The Research Instruments is questionnaire. A questionnaire of a set of questions presented to get their answers. The questionnaire is very flexible in that there is any number of ways to ask questions. Questionnaire need to be carefully developed, tested and debugged before they are administered on large scale. A total of 11 questions were used for survey. Questions includes open-ended questions, multiple choice single answer questions, multiple choice multiple answer questions.

3.3.5 Data Collection Method Primary Data Collection: The primary data was collected by directly contacting the passengers visiting the duty free using a properly drafted questionnaire. Secondary Data Collection: In addition to the primary research, secondary data was collected from articles published in dailies, magazines, organization manuals, websites, journals and various books in management. 3.3.6 Collection of data through questionnaire This method of data collection is quite popular in case of big enquiries. It is being adopted by private individuals, research workers, private and public organizations and even by the Government. In this method a questionnaire is send to the person concerned with a request to answer the questions and return the questionnaire. A questionnaire consist of number of questions printed or typed in a definite order or a form or set of forms. The

questionnaire is give to the respondents who are expected to read and understand the questions and write down the reply in the space meant for the purpose in the questionnaire itself. The respondents have to answer the questions on their own. Merits of the method There is low cost even when the universe is large and is widely spread geographically. It is free from the bias of the interviewer answers are in respondents own words. Respondents have adequate time to give well thought out answers. Respondents who are not easily approachable can also be reached conveniently. Large sample can be made use of and thus the result can be made more dependable and reliable. Demerits of the method It can be used only when respondents are educated and cooperating. The control over questionnaire may be lost once it is given. There is inbuilt inflexibility because of the difficulty of amending the approach once questionnaire have been dispatched. There is also the possibility of omission of replies. It is difficult to know whether willing respondents are truly representative.

3.3.7 Field work procedure After fixing the sample size the data collection was started by means of personal interviewing. It is most versatile of other methods such as mail interview or telephonic interview. The respondents are selected on the convenience of their availability. Some respondents are ready to fill up questionnaire by themselves. Each time the interview lasted for five minutes. Sometimes it longs for more than half an hour because of the respondents curiosity to answer. 3.3.8 Data Analysis Techniques In this research various percentages and ranks are identified in the analysis and they have presented pictorially by way of diagrams to have better clarity. The results obtained are the outcome of critical analysis and evaluation of the data collected.

TOOLS USED FOR ANALYSIS The different tools used for analysis were used in the present study. They include: a) Descriptive analysis: It refers to the transformation of raw data into a form that will make them easy to understand and interpret. Describing responses or observations is typically the first form of analysis. Calculating averages, frequency distributions and percentage distributions are the most common ways of summarizing data. The descriptive analysis tools used for this study are: a. Simple tabulation: Simple tabulation of the responses or observations on a question-byquestion or item-by-item basis provides the most basic form of information for the researcher and in many cases the most useful information. It tells the researcher how frequently each response occurs. This starting point of analysis requires the counting of responses or observations for each of the categories or codes assigned to a variable. b. b) The Percentage method: This is the earliest and the best method to analyze a given data. The percentage wise distribution of the give data gives an idea of which factor is more than & which is less. The method has used extensively in this project. Number of response 100 Sample size b) Cross Tabulation: Chi-Square Test: One of the simplest techniques for describing sets of relationships is the cross tabulation. The chi-square distribution provides a means for testing the statistical significance of contingency tables. It allows to test for the differences in two groups distributions across categories. The chi- square test (2 ) involves comparing the observed frequencies (Oi) with thw expected frequencies (Ei). 2 = ( O1-E1)2 +(O2-E2)2 +..(Oi Ei)2 E1 + E2 +.+Ei c) Weighted average mean: An average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average. Weightings are the equivalent of having that many like items with the same value involved in the average.

The weighted mean of a non-empty set of data [x1,x2,.xn] with non-negative weights [w1,w2,.wn] can be calculated by: w1x1+w2x2+.........+wnxn w1+ w2+............+wn

3.4 LIMITATION OF THE STUDY

The study was only conducted among the passengers visiting the duty free at the arrival terminal and could not be extended to the departure terminal due to security related issues. The unwillingness of the respondents to fill the questionnaire was another major obstacle. The respondents time constraint to complete the questionnaire.

CHAPTER 4 DATA ANAYSIS AND INTERPRETATION

4.1 Overview of Response

4.1.1 Gender Table 4.1.1 gender Gender Male Female No. of Respondents 72 43 Percentage 63% 37%

80 60

72

43 40 20 0 males females

Fig 4.1.1 Gender (Source: primary data) Interpretation: From the 115 samples selected, 72 respondents are males and 43 are females.

4.1.2 Age Table 4.1.2 Age Age Less than 25 26-35 36-45 46-55 56 and above No. of Respondents 11 31 45 26 2 Percentage 10% 27% 39% 23% 2%

50 45 40 35 30 25 20 15 10 5 0 Less than 25 26-35 11 31

45

25

2 36-45 46-55 56 and above

Fig 4.1.2 Age (Source: primary data) Interpretation: From the sample of 115, 11 respondents are under the age group of less than 25, 31 people are in the age group of 26-35, 45 respondents in the age group of 36-45, 26 respondents in the age group of 46-55 and 2 respondents in the group of above 55.

4.1.3 Occupation Table 4.1.3 Occupation Occupation Business Employed Home maker Looking for work Student Retired No. of Respondents 10 74 19 2 8 2 Percentage 9% 64% 17% 2% 7% 2%

80 70 60 50 40 30 20 10 0 Business

74

19 10 2 Employed Home maker Looking for work Student 8 2 Retired

Fig 4.1.3 occupation (Source: primary data) Interpretation: From the samples taken for study, 64% respondents are employed, 16 % respondents are home maker, 9% respondents are business people, 7% are students, 2% are retired people, and 2% are looking for work.

4.1.4 Frequency of visit to Cochin Table 4.1.4 Frequency of visit to Cochin Frequency of visit to cochin Once 2-3 times 4-6 times More than 6 times No. of Respondents 3 6 13 93 Percentage 3% 5% 11% 81%

100 90 80 70 60 50 40 30 20 10 0 Once 2-3 times 4-6 times 3 6 13

93

More than 6 times

Fig 4.1.4 Frequency of visit to Cochin (Source: primary data) Interpretation: Among the samples selected for study, more (81%) of the passengers visited Cochin more than six times. 11% of samples visited Cochin four to six times, 5% of the samples visited two to three times and 3% of samples have visited only once.

4.1.5 Frequency of visit to Cochin Duty Free shop

Table 4.1.5 Frequency of visit to Cochin Duty Free Shop Frequency of visit to cochin duty free shop Every time Once 2-3 times More than 3 times No. of Respondents 73 5 13 24 Percentage 63% 4% 11% 21%

80 70 60 50 40 30 20 10 0

73

24 13 5

Every time

Once

2-3 times

More than 3 times

Fig 4.1.5 Frequency of visit to Cochin Duty Free Shop (Source: primary data) Interpretation: Among the samples selected for study, more (64%) of the passengers visited duty free every time they visit cochin. 21% of samples visited more than three times, 11% of the samples visited two to three times and 4% of samples have visited only once.

4.1.6 Products preferred from Cochin duty free shop Table 4.1.6 Products preferred from Cochin Duty Free Shop Products Confectionery Liquor Perfume Souvenirs Super market Tobacco Toys Gold Electronics No. of Respondents 115 64 4 0 29 3 0 0 5 Percentage 100% 56% 3% 0% 25% 3% 0% 0% 4%

140 120 100 80 60 40 20 0

115

64 29 4 0 3 0 0 5

Fig 4.1.6 Products preferred from Cochin Duty Free Shop (Source: primary data)

Interpretation: The question was framed in such a way that the respondents were free to choose any number of products they prefer. Among the samples selected for study, 100% of the passengers prefer to buy confectionery goods from duty free shop, 56% prefer to buy liquor, 25% of passengers prefer supermarkets products, 4% prefer electronics, 4% of respondents prefer perfume and 3% of them prefer tobacco. The product categories like souvenirs, toys and gold are not preferred by anyone of the samples selected.

4.1.7 Average amount spent on products preferred

Table 4.1.7 Average amount spent on products preferred Products Confectionery Liquor Perfume Super market Tobacco Sum(in Rs) 1,24,278 1,61,616 3,045 20,832 1,008 Average 1,081 2,525 761 718 336

Electronics

7,392

1,478

(Source: primary data) Interpretation: The average amount spent on liquor is more when compared to other products i.e. Rs 2,525. The average amount spent on confectionery is Rs 1,081.

4.1.8 Reasons for purchasing confectionery products Table 4.1.8 Reasons for purchasing confectionery goods Reasons For self For kids For gifting friends and relatives For gifting clients No. of Respondents 0 3 109 3 Percentage 0% 3% 95% 3%

120 100 80 60 40 20 0 0 For self For kids 3

109

3 For gifting friends and relatives For gifting clients

Fig 4.1.7 Reasons for purchasing confectionery goods (Source: primary data) Interpretation: Among the samples selected for study, 95% of the passengers prefer to buy confectionery goods from duty free shop for gifting friends and relatives, 3% prefer to buy for gifting their kids and another 3% for gifting their clients.

4.1.9 Factors that influence purchase of confectionery at Cochin duty free Table 4.1.9 Factors influencing purchase of confectionery at Cochin Duty Free No. of Respondents on importance level of Factors Important Price Taste Ingredients Package Size Discount Brand 114 109 2 92 104 114 110 factors Not important 1 6 113 23 11 1 5

120 100 80 60 40 20

114

109

113 92

104

114

110

important 23 1 6 2 11 1 5 not important

Fig 4.1.8 Factors influencing purchase of confectionery at Cochin Duty Free

(Source: primary data) Interpretation: Among the samples selected for study, most of the people (99%) consider price and discount as an important factor. 95% of respondents consider taste and brands as an important factor. 90% and 80% of passengers give importance to package and size also whereas 98% does not consider ingredients as an important factor that influences them.

4.1.10 Total score on types of confectionery preferred Table 4.1.10 Types of confectionery preferred Types Chocolate bars Candies Chocolate gift packs No. of Respondents 12 96 7 Percentage 10% 83% 6%

120 100 80 60 40 20 0 Chocolate bars Candies Chocolate gift packs 12 96

Fig 4.1.9 Types of confectionery preferred (Source: primary data) Interpretation: Among the samples selected for study, most of the people (89%) passengers prefer candies. 10% of respondents prefer chocolate bars and 6% of them prefer chocolate gift packs.

4.1.11 Total score on reasonable pricing of confectionery at Cochin duty free shop Table 4.1.11 Total score on reasonable pricing of confectionery at Cochin Duty Free Shop No. of Respondents on acceptance level of Types Agree Chocolate bars 17 reasonable pricing Disagree 98

Candies Chocolate gift packs

15 16

100 99

120 100 80 60 40 20 0 Chocolate bars Candies Chocolate gift packs 17 15 16 Agree Disagree 98 100 99

Fig 4.1.10 Total score on reasonable pricing of confectionery at Cochin Duty Free Shop (Source: primary data) Interpretation: Among the samples selected for study, most of the people (85%) consider pricing of the chocolates in Cochin duty free is not reasonable.

4.1.12 Ranking of the confectionery brands by the passengers The passengers have ranked the brands as 1 for the most preferred brand to 7 for the least preferred brand. The lowest total score indicates the first (highest) preference ranking. The result shows the following rank order: Table 4.1.12 Ranking of brands Brands Galaxy Ferraro Twix Snickers Mars Milky way Rank 1 2 3 4 5 6 Total score 121 494 510 514 516 517

Bounty

526

(Source: primary data) Interpretation: From the study conducted, galaxy have been ranked first, ferraro second, Twix third, fourth ranking for snickers, fifth, sixth and seventh rankings for mars, Milky Way and bounty respectively.

4.1.13 Promotional preference of the customers for confectionery products at duty free Table 4.1.13 Promotional preference of customers No. of Respondents on preference level of Promotions promotional scheme Good Scratch and Win Free Gift Discount Buy One Get One Free Lucky Draw Super Value Packs 64 98 100 112 62 112 Not Good 51 17 5 3 53 3

120 100 80 64 60 40 20 0 Scratch and Win Free Gift Discount 17 5 51 98 100

112

112

62 53 Good Not Good 3 Buy One Get One Free Lucky Draw 3 Super Value Packs

Fig 4.1.11 Promotional preference of customers (Source: primary data)

Interpretation: From the samples, 112 respondents like super value packs and buy one get one free promotional schemes than other promotions. 86% of respondents have chosen discount as next promotion scheme. Another 85% also prefer free gifts with product purchases. Only 55% of respondents have preferred scratch and win and lucky draw.

4.1.14 Total Score on overall satisfaction of customers on services at Cochin Duty Free Table 4.1.14 Satisfaction of Services No. of Respondents on satisfaction level of the Services Satisfied Ambience Location Customer service Display Stock Availability 104 106 104 107 14 services Dissatisfied 11 9 11 8 101

120 104 100 80 60 40 20 0 Ambience Location Customer service 11 11 106 104

107

101

Satisfaction Disatisfaction

14

Display

Stock Availability

Fig 4.1.12 Satisfaction of Services (Source: primary data) Interpretation: From the samples taken 104 respondents are satisfied with the ambience of the shop, 106 people liked the location, 104 respondents are satisfied with the customer

service of the employees, and 107 respondents are satisfied with the display of the products. Out of the samples taken 101 respondents are least satisfied with the stock available at the shop. 4.1.15 Total Score on preference by customers to receive information Table 4.1.15 Preference of receiving information Information Websites Mobile phone alerts In flight Magazines Television Ads No of respondents 1 7 59 48 Percentage 1% 6% 51% 42%

70 60 50 40 30 20 10 0 Websites Mobile phone alerts In flight Magazines Television Ads 7 1 59 48

Fig 4.1.13 Preference of receiving information (Source: primary data) Interpretation: From the samples selected 51% of respondents prefer to receive information from In-Flight magazines. 48% of passengers indicated Television Ads to receive the information. 6% of respondents prefer mobile phone alerts and only 1% prefers to receive information from website.

4.2 In-Depth Analysis

4.2.1 Chi-Square test for Preferred Products and Gender Chi-square test is used to describe the relationship between variables. The test is done here to find if any relationship is there between preferred products and gender. The significance level is 5% (.05). The Chi-Square test is conducted only for liquor, perfume, supermarkets, tobacco and electronics products. The products namely, confectionery, Souvenirs, toys and gold are either 100% preferred by the respondents or not at all preferred. Hence, there is no significance in conducting test for these mentioned products. 4.2.1.1 Liquor and Gender Hypothesis statement H0: There is no association between preference for liquor and gender of respondent. H1: There is association between preference for liquor and gender of respondent. Table 4.2.1.1.1 cross tabulation for liquor by gender Gender Male Female TOTAL Purchased 49 Liquor Not purchased Total 23 72 15 28 43 64 51 115

Table 4.2.1.1.2 Chi-square test for liquor and gender Degree of freedom 1 1 1 Asymp. Sig. (2sided) .001 .001 .000 .001 11.899 1 .001 .001 Exact Sig. (2-sided) Exact Sig. (1-sided)

Value Pearson Chi-Square Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association (Source: primary data) 12.003a 10.697 12.124

Interpretation: The coefficient of chi-square test is 0.001. It is less than the significant level of 0.05. So H0 is rejected. From the test its proven that there is association between preference for liquor and gender of respondent. 4.2.1.2 Perfume and Gender Hypothesis statement H0: There is no association between preference for perfume and gender of respondent. H1: There is association between preference for perfume and gender of respondent. Table 4.2.1.2 cross tabulation for perfume by gender Gender Male Female TOTAL Purchased 3 Perfume Not purchased Total 69 72 1 42 43 4 111 115

Table 4.2.1.2.2 Chi-square test for perfume and gender Degree of freedom 1 1 1 Asymp. Sig. (2sided) .602 1.000 .592 1.000 .269 1 .604 .520 Exact Sig. (2-sided) Exact Sig. (1-sided)

Value Pearson Chi-Square Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association (Source: primary data) .272a .000 .288

Interpretation: The coefficient of chi-square test is 0.602. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between preference for perfume and gender of respondent.

4.2.1.3 Supermarkets and Gender Hypothesis statement H0: There is no association between preference for supermarkets and gender of respondent. H1: There is association between preference for Supermarkets and gender of respondent. Table 4.2.1.3.1 cross tabulation for supermarkets by gender Gender Male Female TOTAL Purchased 15 Supermarkets Not purchased Total 57 72 14 29 43 29 86 115

Table 4.2.1.3.2 Chi-square test for supermarket and gender Degree of freedom 1 1 1 Asymp. Sig. (2sided) .161 .238 .165 .187 1.945 1 .163 .120 Exact Sig. (2-sided) Exact Sig. (1-sided)

Value Pearson Chi-Square Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association (Source: primary data) 1.963a 1.390 1.926

Interpretation: The coefficient of chi-square test is 0.161. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between preference for supermarkets and gender of respondent. 4.2.1.4 Tobacco and Gender Hypothesis statement H0: There is no association between preference for tobacco and gender of respondent. H1: There is association between preference for tobacco and gender of respondent.

Table 4.2.1.4.1 cross tabulation for tobacco by gender Gender Male Purchased 2 Tobacco Not purchased Total 70 72 Female TOTAL 1 42 43 3 112 115

Table 4.2.1.4.2 Chi-square test for tobacco and gender Degree of freedom 1 1 1 Asymp. Sig. (2sided) .883 1.000 .882 1.000 .021 1 .883 .687 Exact Sig. (2-sided) Exact Sig. (1-sided)

Value Pearson Chi-Square Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association (Source: primary data) .022a .000 .022

Interpretation: The coefficient of chi-square test is 0.883. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between preference for tobacco and gender of respondent. 4.2.1.5 Electronics and Gender Hypothesis statement H0: There is no association between preference for electronics and gender of respondent. H1: There is association between preference for electronics and gender of respondent.

Table 4.2.1.5.1 cross tabulation for tobacco by gender Gender Male Purchased 5 Electronics Not purchased Total 67 72 Female TOTAL 0 43 43 5 110 115

Table 4.2.1.5.2 Chi-square test for electronics and gender Degree of freedom 1 1 1 Asymp. Sig. (2sided) .077 .196 .028 .155 3.095 1 .079 .091 Exact Sig. (2-sided) Exact Sig. (1-sided)

Value Pearson Chi-Square Continuity Correction Likelihood Ratio Fisher's Exact Test Linear-by-Linear Association (Source: primary data) 3.122a 1.675 4.818

Interpretation: The coefficient of chi-square test is 0.077. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between preference for electronics and gender of respondent.

4.2.2 Chi-Square test for Preferred Products and Age Chi-square test is used to describe the relationship between variables. The test is done here to find if any relationship is there between preferred products and age. The significance level is 5% (.05). The Chi-Square test is conducted only for liquor, perfume, supermarkets, tobacco and electronics products. The products namely, confectionery, Souvenirs, toys and gold are either 100% preferred by the respondents or not at all preferred. Hence, there is no significance in conducting test for these mentioned products. 4.2.2.1 Liquor and Age Hypothesis statement H0: There is no association between preference for liquor and age of respondent. H1: There is association between preference for liquor and age of respondent. Table 4.2.2.1.1 cross tabulation for liquor by age Age 16-25 26-35 36-45 46-55 Above 55 TOTAL Liquor Purchased 1 17 14 31 27 18 45 17 9 26 2 0 2 64 51 115

Not purchased 10 Total 11

Table 4.2.2.1.2 Chi-square test for liquor and age Degree of freedom 4 4 1 Asymp. Sig. (2sided) .013 .006 .004

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 12.607a 14.452 8.427

Interpretation: The coefficient of chi-square test is 0.013. It is less than the significant level of 0.05. So H0 is rejected. From the test its proven that there is association between preference for liquor and age of respondent.

4.2.2.2 Perfume and Age Hypothesis statement H0: There is no association between preference for perfume and age of respondent. H1: There is association between preference for perfume and age of respondent. Table 4.2.2.2.1 cross tabulation for perfume by age Age 16-25 26-35 36-45 46-55 Above 55 TOTAL Perfume Purchased 1 1 30 31 1 44 45 1 25 26 0 2 2 4 111 115

Not purchased 10 Total 11

Table 4.2.2.2.2 Chi-square test for perfume and age Degree of freedom 4 4 1 Asymp. Sig. (2sided) .856 .891 .523

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 1.332a 1.123 .407

Interpretation: The coefficient of chi-square test is 0.856. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between preference for perfume and age of respondent.

4.2.2.3 Supermarkets and Age Hypothesis statement H0: There is no association between preference for supermarkets and age of respondent. H1: There is association between preference for Supermarkets and age of respondent..

Table 4.2.2.3.1 cross tabulation for supermarkets by age Age 16-25 26-35 Supermarkets Purchased 4 7 24 31 3645 15 30 45 4655 3 23 26 Above 55 0 2 2 TOTAL 29 86 115

Not purchased 7 Total 11

Table 4.2.2.2.2 Chi-square test for supermarket and age Degree of freedom 4 4 1 Asymp. Sig. (2sided) .226 .167 .164

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 5.665a 6.462 1.935

Interpretation: The coefficient of chi-square test is 0.226. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between preference for supermarkets and age of respondent.

4.2.2.4 Tobacco and Age Hypothesis statement H0: There is no association between preference for tobacco and age of respondent. H1: There is association between preference for tobacco and age of respondent. Table 4.2.2.4.1 cross tabulation for tobacco by age Age 16-25 26-35 36-45 46-55 Above 55 TOTAL Tobacco Purchased 0 0 31 31 2 43 45 1 25 26 0 2 2 3 112 115

Not purchased 11 Total 11

Table 4.2.2.4.2 Chi-square test for tobacco and age Degree of freedom 4 4 1 Asymp. Sig. (2sided) .748 .565 .328

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 1.932a 2.958 .957

Interpretation: The coefficient of chi-square test is 0.748. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between preference for tobacco and age of respondent. 4.2.2.5 Electronics and Age Hypothesis statement H0: There is no association between preference for electronics and age of respondent. H1: There is association between preference for electronics and age of respondent. Table 4.2.2.5.1 cross tabulation for tobacco by gender Age 16-25 26-35 36-45 46-55 Above 55 TOTAL Tobacco Purchased 0 0 31 31 3 42 45 2 24 26 0 2 2 5 110 115

Not purchased 11 Total 11

Table 4.2.2.5.2 Chi-square test for electronics and age Degree of freedom 4 4 1 Asymp. Sig. (2sided) .512 .288 .152

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 3.281a 4.989 2.055

Interpretation: The coefficient of chi-square test is 0.512. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between preference for electronics and age of respondent.

4.2.3 Chi-Square test for Preferred Products and Occupation Chi-square test is used to describe the relationship between variables. The test is done here to find if any relationship is there between preferred products and occupation. The significance level is 5% (.05). The Chi-Square test is conducted only for liquor, perfume, supermarkets, tobacco and electronics products. The products namely, confectionery, Souvenirs, toys and gold are either 100% preferred by the respondents or not at all preferred. Hence, there is no significance in conducting test for these mentioned products. 4.2.3.1 Liquor and Occupation Hypothesis statement H0: There is no association between preference for liquor and occupation of respondent. H1: There is association between preference for liquor and occupation of respondent. Table 4.2.3.1.1 cross tabulation for liquor by occupation Occupation Home maker 6 13 19 Looking for work 0 2 2 1 7 8 2 0 2 64 51 115 Student Retired TOTAL

Own business Employed Liquor

Purchased

46 28 74

Not purchased 1 Total 10

Table 4.2.3.1.2 Chi-square test for liquor and occupation Degree of freedom 5 5 1 Asymp. Sig. (2sided) .001 .000 .002

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 20.652a 23.559 9.455

Interpretation: The coefficient of chi-square test is 0.001. It is less than the significant level of 0.05. So H0 is rejected. From the test its proven that there is association between preference for liquor and occupation of respondent. 4.2.3.2 Perfume and Occupation Hypothesis statement H0: There is no association between preference for perfume and occupation of respondent. H1: There is association between preference for perfume and occupation of respondent. Table 4.2.3.2.1 cross tabulation for perfume by occupation Occupation Home maker 0 19 19 Looking for work 0 2 2 0 8 8 0 2 2 4 111 115 Student Retired TOTAL

Own business Employed Perfume

Purchased

4 70 74

Not purchased 10 Total 10

Table 4.2.3.2.2 Chi-square test for perfume and occupation Degree of freedom 5 5 1 Asymp. Sig. (2sided) .807 .607 .444

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2.296a 3.606 .586

Interpretation: The coefficient of chi-square test is 0.807. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between preference for perfume and occupation of respondent.

4.2.3.3 Supermarkets and Occupation Hypothesis statement H0: There is no association between preference for supermarkets and occupation of respondent. H1: There is association between preference for supermarkets and occupation of respondent. Table 4.2.3.3.1 cross tabulation for supermarkets by occupation Occupation Home maker 7 12 19 Looking for work 0 2 2 2 6 8 0 2 2 29 86 115 Student Retired TOTAL

Own business Employed Supermarkets

Purchased

19 55 74

Not purchased 9 Total 10

Table 4.2.3.3.2 Chi-square test for supermarket and occupation Degree of freedom 5 5 1 Asymp. Sig. (2sided) .557 .407 .893

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 3.947a 5.070 .018

Interpretation: The coefficient of chi-square test is 0.557. It is more than the significant level of 0.05. So H0 is accepted .From the test its proven that there is no association between preference for supermarkets and occupation of respondent. 4.2.3.4 Tobacco and Occupation Hypothesis statement H0: There is no association between preference for tobacco and occupation of respondent. H1: There is association between preference for tobacco and occupation of respondent.

Table 4.2.3.4.1 cross tabulation for tobacco by occupation Occupation Home maker 1 18 19 Looking for work 0 2 2 0 8 8 0 2 2 3 112 115 Student Retired TOTAL

Own business Employed Tobacco

Purchased

2 72 74

Not purchased 10 Total 10

Table 4.2.3.4.2 Chi-square test for tobacco and occupation Degree of freedom 5 5 1 Asymp. Sig. (2sided) .952 .904 .922

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 1.119a 1.575 .010

Interpretation: The coefficient of chi-square test is 0.952. It is more than the significant level of 0.05. So H0 is accepted From the test its proven that there is no association between preference for tobacco and occupation of respondent. 4.2.3.5 Electronics and Occupation Hypothesis statement H0: There is no association between preference for electronics and occupation of respondent. H1: There is association between preference for electronics and occupation of respondent.

Table 4.2.3.4.1cross tabulation for electronics by occupation Occupation Hom Own business Electron ics Purchased Not purchased Total 1 9 10 4 70 74 Employ ed e mak er 0 19 19 Looki ng for work 0 2 2

Stude nt

Retir ed

TOT AL

0 8 8

0 2 2

5 110 115

Table 4.2.3.5.2 Chi-square test for electronics and occupation Degree of freedom 5 5 1 Asymp. Sig. (2sided) .795 .622 .194

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2.376a 3.511 1.689

Interpretation: The coefficient of chi-square test is 0.795. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between preference for electronics and occupation of respondent.

4.2.4 Chi-Square test for Amount spent on preferred products and Gender Chi-square test is used to describe the relationship between variables. The test is done here to find if any relationship is there between amount spent and the gender. The significance level is 5% (.05). The Chi-Square test is conducted only for confectionery, liquor, perfume, supermarkets, tobacco and electronics products. The products namely, Souvenirs, toys and gold are either 100% preferred by the respondents or not at all preferred. Hence, there is no significance in conducting test for these mentioned products. 4.2.4.1 Amount spent on Confectionery and Gender Hypothesis statement H0: There is no association between amount spent on confectionery and gender of respondent. H1: There is association between amount spent on confectionery and gender of respondent. Table 4.2.4.1.1 cross tabulation for amount spent on confectionery by gender Gender Male Amount on spent 0-25 25-50 45 23 4 0 72 Female TOTAL 24 17 0 2 43 69 40 4 2 115

confectionery(in 50-75 Dollars) 75-100 Total

Table 4.2.4.1.2 Chi-square test for amount spent on confectionery and gender Degree of freedom 3 3 1 Asymp. Sig. (2sided) .094 .040 .407

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 6.384a 8.322 .687

Interpretation: The coefficient of chi-square test is 0.094. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on confectionery and gender of respondent. 4.2.4.2 Amount spent on Liquor and Gender Hypothesis statement H0: There is no association between amount spent on liquor and gender of respondent. H1: There is association between amount spent on liquor and gender of respondent. Table 4.2.4.2.1 cross tabulation for amount spent on liquor by gender Gender Male 0-50 Amount on spent liquor(in 50-100 100-150 150-200 Total 49 21 1 1 72 Female TOTAL 35 7 1 0 43 84 28 2 1 115

Dollars)

Table 4.2.4.2.2 Chi-square test for amount spent on liquor and gender Degree of freedom 3 3 1 Asymp. Sig. (2sided) .358 .300 .151

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 3.225a 3.663 2.059

Interpretation: The coefficient of chi-square test is 0.358. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on liquor and gender of respondent.

4.2.4.3 Amount spent on Perfume and Gender Hypothesis statement H0: There is no association between amount spent on perfume and gender of respondent. H1: There is association between amount spent on perfume and gender of respondent. Table 4.2.4.3.1 cross tabulation for amount spent on perfume by gender Gender Male 0-10 Amount on spent perfume(in 10-20 20-30 30-40 Total 70 0 2 0 72 Female TOTAL 42 1 0 0 43 112 1 2 0 115

Dollars)

Table 4.2.4.3.2 Chi-square test for amount spent on perfume and gender Degree of freedom 2 2 1 Asymp. Sig. (2sided) .238 .147 .546

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2.869a 3.841 .365

Interpretation: The coefficient of chi-square test is 0.238. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on perfume and gender of respondent. 4.2.4.4 Amount spent on Supermarkets and Gender Hypothesis statement H0: There is no association between amount spent on supermarkets and gender of respondent. H1: There is association between amount spent on supermarkets and gender of respondent.

Table 4.2.4.4.1 cross tabulation for amount spent on supermarkets by gender Gender Male Amount on spent 0-10 10-20 64 1 5 2 72 Female TOTAL 38 2 1 2 43 102 3 6 4 115

supermarkets(in 20-30 Dollars) 30-40 Total

Table 4.2.4.4.2 Chi-square test for amount spent on supermarket and gender Degree of freedom 3 3 1 Asymp. Sig. (2sided) .480 .465 .979

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2.472a 2.559 .001

Interpretation: The coefficient of chi-square test is 0.480. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on supermarkets and gender of respondent. 4.2.4.5 Amount spent on Tobacco and Gender Hypothesis statement H0: There is no association between amount spent on tobacco and gender of respondent. H1: There is association between amount spent on tobacco and gender of respondent. Table 4.2.4.5.1 cross tabulation for amount spent on tobacco by gender Gender Male 0-5 Amount on spent tobacco(in 5-10 10-15 15-20 Total 72 0 0 0 72 Female TOTAL 42 0 0 1 43 114 0 0 1 115

Dollars)

Table 4.2.4.5.2 Chi-square test for amount spent on tobacco and gender Degree of freedom 1 1 1 Asymp. Sig. (2sided) .194 .159 .196

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 1.689a 1.982 1.674

Interpretation: The coefficient of chi-square test is 0.194. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on tobacco and gender of respondent.

4.2.4.6 Amount spent on Electronics and Gender Hypothesis statement H0: There is no association between amount spent on electronics and gender of respondent. H1: There is association between amount spent on electronics and gender of respondent. Table 4.2.6.6 cross tabulation for amount spent on electronics by gender Gender Male Amount on electronics(in Dollars) spent 0-12.5 12.5-25 25-37.5 37.5-50 Total 68 0 0 4 72 Female TOTAL 43 0 0 0 43 111 0 0 4 115

Table 4.2.4.6.2 Chi-square test for amount spent on electronics and gender Degree of freedom 1 1 1 Asymp. Sig. (2sided) .116 .050 .117

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2.475a 3.832 2.453

Interpretation: The asymptotic coefficient of chi-square test is 0.116. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on electronics and gender of respondent.

4.2.5 Chi-Square test for Amount spent on preferred products and Age Chi-square test is used to describe the relationship between variables. The test is done here to find if any relationship is there between amount spent and the age. The significance level is 5% (.05). The Chi-Square test is conducted only for confectionery, liquor, perfume, supermarkets, tobacco and electronics products. The products namely, Souvenirs, toys and gold are either 100% preferred by the respondents or not at all preferred. Hence, there is no significance in conducting test for these mentioned products.

4.2.5.1 Amount spent on Confectionery and Age Hypothesis statement H0: There is no association between amount spent on confectionery and age of respondent. H1: There is association between amount spent on confectionery and age of respondent. Table 4.2.5.1.1 cross tabulation for amount spent on confectionery by age Age 16-25 Amount spent on confectionery(in Dollars) 50-75 75-100 0 1 2 0 1 1 1 0 0 0 4 2 0-25 25-50 5 5 26-35 19 10 36-45 31 12 46-55 13 12 Above 55 1 1 TOTAL 69 40

Total

11

31

45

26

115

Table 4.2.5.1.2 Chi-square test for amount spent on confectionery and age Degree of freedom 12 12 1 Asymp. Sig. (2sided) .635 .671 .632

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 9.784a 9.373 .230

Interpretation: The coefficient of chi-square test is 0.635. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on confectionery and age of respondent.

4.2.5.2 Amount spent on Liquor and Age Hypothesis statement H0: There is no association between amount spent on liquor and age of respondent. H1: There is association between amount spent on liquor and age of respondent. Table 4.2.5.2 cross tabulation for amount spent on liquor by age Age 16-25 Amount spent on 0-50 liquor(in Dollars) 50-100 100-150 150-200 Total 8 2 1 0 11 26-35 28 3 0 0 31 36-45 30 14 1 0 45 46-55 17 9 0 0 26 Above 55 1 0 0 1 2 TOTAL 84 28 2 1 115

Table 4.2.5.1.2 Chi-square test for amount spent on liquor and age Degree of freedom 12 12 1 Asymp. Sig. (2sided) .000 .063 .050

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 68.247a 20.211 3.847

Interpretation: The coefficient of chi-square test is 0.000. It is less than the significant level of 0.05. So H0 is rejected. From the test its proven that there is association between amount spent on liquor and age of respondent. 4.2.5.3 Amount spent on Perfume and Age Hypothesis statement H0: There is no association between amount spent on perfume and age of respondent. H1: There is association between amount spent on perfume and age of respondent. Table 4.2.5.3.1 cross tabulation for amount spent on perfume by age Age 16-25 Amount spent on 0-10 perfume(in Dollars) 10-20 20-30 30-40 Total 11 0 0 0 11 26-35 29 1 1 0 31 36-45 45 0 0 0 45 46-55 25 0 1 0 26 Above 55 2 0 0 0 2 TOTAL 112 1 2 0 115

Table 4.2.5.3.2 Chi-square test for amount spent on perfume and age Degree of freedom 8 8 Asymp. Sig. (2sided) .772 .699

Value Pearson Chi-Square Likelihood Ratio 4.868a 5.537

Linear-by-Linear Association (Source: primary data)

.000

1.000

Interpretation: The coefficient of chi-square test is 0.772. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on perfume and age of respondent. 4.2.5.4 Amount spent on Supermarkets and Age Hypothesis statement H0: There is no association between amount spent on supermarkets and age of respondent. H1: There is association between amount spent on supermarkets and age of respondent. Table 4.2.5.4.1 cross tabulation for amount spent on supermarkets by age Age 16-25 Amount spent on 0-10 supermarkets(in Dollars) 10-20 20-30 30-40 Total 10 0 1 0 11 26-35 30 1 0 0 31 36-45 36 1 5 3 45 46-55 25 0 0 1 26 Above 55 1 1 0 0 2 TOTAL 102 3 6 4 115

Table 4.2.5.4.2 Chi-square test for amount spent on supermarket and age Degree of freedom 12 12 1 Asymp. Sig. (2sided) .004 .068 .453

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 28.620a 19.969 .562

Interpretation: The coefficient of chi-square test is 0.004. It is less than the significant level of 0.05. So H0 is rejected. From the test its proven that there is association between amount spent on supermarkets and age of respondent. 4.2.5.5 Amount spent on Tobacco and Age Hypothesis statement H0: There is no association between amount spent on tobacco and age of respondent. H1: There is association between amount spent on tobacco and age of respondent. Table 4.2.5.5.1 cross tabulation for amount spent on tobacco by age Age 16-25 Amount spent on 0-5 tobacco(in Dollars) 5-10 10-15 15-20 Total 11 0 0 0 11 26-35 31 0 0 0 31 36-45 45 0 0 0 45 46-55 25 0 0 1 26 Above 55 2 0 0 0 2 TOTAL 114 0 0 1 115

Table 4.2.5.5.2 Chi-square test for amount spent on tobacco and age Degree of freedom 4 4 1 Asymp. Sig. (2sided) .485 .557 .208

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 3.453a 3.004 1.586

Interpretation: The coefficient of chi-square test is 0.485. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on tobacco and age of respondent. 4.2.5.6 Amount spent on Electronics and Age Hypothesis statement H0: There is no association between amount spent on electronics and age of respondent.

H1: There is association between amount spent on electronics and age of respondent. Table 4.2.5.6.1 cross tabulation for amount spent on electronics by age Age 16-25 Amount spent on 0-12.5 electronics(in Dollars) 12.5-25 25-37.5 37.5-50 Total 11 0 0 0 11 26-35 31 0 0 0 31 36-45 44 0 0 1 45 46-55 23 0 0 3 26 Above 55 2 0 0 0 2 TOTAL 111 0 0 4 115

Table 4.2.5.6.2 Chi-square test for amount spent on electronics and age Degree of freedom 4 4 1 Asymp. Sig. (2sided) .145 .162 .043

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 6.828a 6.541 4.084

Interpretation: The coefficient of chi-square test is 0.145. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on electronics and age of respondent.

4.2.6 Chi-Square test for Amount spent on preferred products and Occupation Chi-square test is used to describe the relationship between variables. The test is done here to find if any relationship is there between amount spent and the occupation. The significance level is 5% (.05). The Chi-Square test is conducted only for confectionery, liquor, perfume, supermarkets, tobacco and electronics products. The products namely, Souvenirs, toys and gold are either 100% preferred by the respondents or not at all preferred. Hence, there is no significance in conducting test for these mentioned products.

4.2.6.1 Amount spent on Confectionery and Occupation Hypothesis statement H0: There is no association between amount spent on confectionery and occupation of respondent. H1: There is association between amount spent on confectionery and occupation of respondent. Table 4.2.6.1.1 cross tabulation for amount spent on confectionery by occupation Occupation Own business Amount on confectionery(in Dollars) spent 0-25 25-50 50-75 75-100 Total 2 4 4 0 10 50 24 0 0 74 11 7 0 1 9 Home maker Looking for work 2 0 0 0 2 3 4 0 1 8 1 1 0 0 2 69 40 4 2 115 Student Retired TOTAL

Employed

Table 4.2.6.1.2 Chi-square test for amount spent on confectionery and occupation Degree of freedom 15 15 1 Asymp. Sig. (2sided) .000 .004 .797

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 56.423a 33.449 .066

Interpretation: The coefficient of chi-square test is 0.000. It is less than the significant level of 0.05. So H0 is rejected. From the test its proven that there is association between amount spent on confectionery and occupation of respondent.

4.2.6.2 Amount spent on Liquor and Occupation Hypothesis statement H0: There is no association between amount spent on liquor and occupation of respondent. H1: There is association between amount spent on liquor and occupation of respondent. Table 4.2.6.2.1 cross tabulation for amount spent on liquor by occupation Occupation Own business Amount on Dollars) spent 0-50 50-100 100-150 150-200 Total 1 9 0 0 10 Home maker 16 3 0 0 9 Looking for work 2 0 0 0 2 5 2 1 0 8 1 0 0 1 2 84 28 2 1 115 Student Retired TOTAL

Employed

59 14 1 0 74

liquor(in

Table 4.2.6.2.2 Chi-square test for amount spent on liquor and occupation Degree of freedom 15 15 1 Asymp. Sig. (2sided) .000 .002 .480

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 89.294a 35.370 .498

Interpretation: The coefficient of chi-square test is 0.000. It is less than the significant level of 0.05. So H0 is rejected. From the test its proven that there is association between amount spent on liquor and occupation of respondent. 4.2.6.3 Amount spent on Perfumes and Occupation Hypothesis statement H0: There is no association between amount spent on perfumes and occupation of respondent. H1: There is association between amount spent on perfumes and occupation of respondent.

Table 4.2.6.3.1 cross tabulation for amount spent on perfumes by occupation Occupation Own business Amount on spent 0-10 10-20 20-30 30-40 Total 10 0 0 0 10 Home maker 18 1 0 0 9 Looking for work 2 0 0 0 2 8 0 0 0 8 2 0 0 0 2 112 1 2 0 115 Student Retired TOTAL

Employed

72 0 2 0 74

perfumes(in

Dollars)

Table 4.2.6.3.2 Chi-square test for amount spent on perfumes and occupation Degree of freedom 10 10 1 Asymp. Sig. (2sided) .799 .863 .756

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 6.190a 5.394 .096

Interpretation: The coefficient of chi-square test is 0.799. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on perfumes and occupation of respondent. 4.2.6.4 Amount spent on Supermarkets and Occupation Hypothesis statement H0: There is no association between amount spent on supermarkets and occupation of respondent. H1: There is association between amount spent on supermarkets and occupation of respondent.

Table 4.2.6.4.1 cross tabulation for amount spent on supermarkets by age occupation Occupation Own business Amount on supermarkets(in Dollars) spent 0-10 10-20 20-30 30-40 Total 10 0 0 0 10 66 1 5 2 74 16 1 1 1 9 Home maker Looking for work 1 0 0 1 2 8 0 0 0 8 1 1 0 0 2 1032 3 6 4 115 Student Retired TOTAL

Employed

Table 4.2.6.4.2 Chi-square test for amount spent on supermarkets and occupation Degree of freedom 15 15 1 Asymp. Sig. (2sided) .003 .463 .488

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 34.608a 14.846 .482

Interpretation: The asymptotic coefficient of chi-square test is 0.003. It is less than the significant level of 0.05. So H0 is rejected. From the test its proven that there is association between amount spent on supermarkets and occupation of respondent.

4.2.6.5 Amount spent on Tobacco and Occupation Hypothesis statement H0: There is no association between amount spent on tobacco and occupation of respondent. H1: There is association between amount spent on tobacco and occupation of respondent

Table 4.2.6.5.1 cross tabulation for amount spent on tobacco by occupation Occupation Own business Amount on spent 0-5 50-10 10-15 15-20 Total 10 0 0 0 10 Home maker 18 0 0 1 9 Looking for work 2 0 0 0 2 8 0 0 0 8 2 0 0 0 2 114 0 0 1 115 Student Retired TOTAL

Employed

74 0 0 0 74

tobacco(in

Dollars)

Table 4.2.6.5.2 Chi-square test for amount spent on tobacco and occupation Degree of freedom 5 5 1 Asymp. Sig. (2sided) .404 .601 .557

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 5.097a 3.646 .345

Interpretation: The coefficient of chi-square test is 0.404. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on tobacco and occupation of respondent. 4.2.6.6 Amount spent on Electronics and Occupation Hypothesis statement H0: There is no association between amount spent on electronics and occupation of respondent. H1: There is association between amount spent on electronics and occupation of respondent.

Table 4.2.6.6.1 cross tabulation for amount spent on electronics by occupation Occupation Own business Amount spent 0-12.5 12.5-25 25-37.5 37.5-50 Total 9 0 0 1 10 Home maker 19 0 0 0 9 Looking for work 2 0 0 0 2 8 0 0 0 8 2 0 0 0 2 111 0 0 4 115 Student Retired TOTAL

Employed

71 0 0 3 74

on electronics(in Dollars)

Table 4.2.6.6.2 Chi-square test for amount spent on electronics and occupation Degree of freedom 5 5 1 Asymp. Sig. (2sided) .783 .682 .210

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association (Source: primary data) 2.457a 3.117 1.575

Interpretation: The coefficient of chi-square test is 0.783. It is more than the significant level of 0.05. So H0 is accepted. From the test its proven that there is no association between amount spent on electronics and occupation of respondent. 4.2.7 Weighted Average of factors that influence customer

Table 4.2.7 Weighted average of factors Factors Price Taste Ingredients Package Weighted Average 37.5 32.6 16.6 27.9

Size Discount Brand

29.8 35.7 21.6

40 35 30 25 20 15 10 5 0

37.5 32.6 27.9 16.6 29.8

35.7

21.6

Price

Taste

Ingredients Package

Size

Discount

Brand

Fig 4.2.1 Weighted average of factors (Source: primary data) Interpretation: From the study conducted, it is clear that the price is the major important factor that influences passenger in purchasing confectionery goods. Discount on the products are also another factor that influence a customer. It is seen that ingredients of the chocolates are less important for the passengers.

4.2.8 Weighted Average of promotional offers preference Table 4.2.8 Weighted Average of promotional preferences of customers Promotions Scratch and Win Free Gift Discount Buy One Get One Free Lucky Draw Super Value Packs Weighted Average 27 30.7 34.5 35.7 26.2 35.5

40 35 30 25 20 15 10 5 0 Scratch and Win Free Gift Discount 27 34.5 30.7

35.7

35.5

26.2

Buy One Get One Free

Lucky Draw

Super Value Packs

Fig 4.2.2 Weighted average of Promotional preference of customers (Source: primary data) Interpretation: From the study it is evident that discount, buy one get one free and super value packs are most preferred promotional schemes and luck draw and scratch and win are least preferred.

4.2.9 Weighted Average of the satisfaction level Table 4.2.9 Weighted average of satisfaction level Services Ambience Location Customer service Display Stock Availability Weighted Average 33.2 33.5 33.6 33.3 13.9

40 35 30 25 20 15 10 5 0 Ambience Location Customer service Display Stock Availability 13.9 33.2 33.5 33.6 33.3

Fig 4.2.3 Weighted average of satisfaction level (Source: primary data) Interpretation: From the study it is evident satisfaction level for ambience, location, customer service and display are high. The satisfaction level of stocks available is the least.

CHAPTER 5 FINDINGS

CHAPTER 5 Findings
5.1 Major findings
More of the respondents have visited Cochin more than 6 times.11% have visited cochin four to six times, 5% two to three times and 3% once.

More (64%) of the passengers visited duty free every time they visit cochin. 21% of samples visited more than three times, 11% of the samples visited two to three times and 4% of samples have visited only once.

Among the samples selected for study, 100% of the passengers prefer to buy confectionery goods from duty free shop.

Among the samples selected for study, 56% prefer to buy liquor.

Among the samples selected for study, 25% of passengers prefer supermarkets products.

Among the samples selected for study, 4% prefer to buy electronics.

Among the samples selected for study, 4% of respondents prefer to buy perfume.

Among the samples selected for study, 3% of them prefer to buy tobacco.

The product categories like souvenirs, toys and gold are not preferred by anyone of the samples selected.

From the study it was evident that the average amount spent on confectionery is Rs 1,081.

From the study it was evident that the average amount spent on liquor is Rs 2525.

From the study it was evident that the average amount spent on perfumes by total respondents of 4 is Rs 761.

From the study it was evident that the average amount spent on supermarkets by total respondents of 29 is Rs 718.

From the study it was evident that the average amount spent on tobacco by total respondents of 3 is Rs 336.

From the study it was evident that the average amount spent on electronics is Rs 1,478.

It is evident that majority of customers (95%) buy confectionery for gifting clients and 3% each for kids and gifting clients.

Among the samples selected for study, most of the people (99%) consider price and discount as an important factor. 95% of respondents consider taste and brands as an important factor. 90% and 80% of passengers give importance to package and size also whereas 98% does not consider ingredients as an important factor that influences them.

It is evident from the study 84% of customers prefer to buy candies, 10% chocolate bars and 6% prefer chocolate gift packs.

Among the samples selected 85% of passengers do not agree that prices are reasonable at Cochin duty free.

The customers ranked Galaxy first, Ferraro second, Twix third, Snickers fourth, Mars fifth, sixth ranking for Milky Way and seventh for Bounty.

From the samples, 112 respondents like super value packs and buy one get one free promotional schemes than other promotions.

86% of respondents have chosen discount as next promotion scheme.

Another 85% also prefer free gifts with product purchases.

Only 55% of respondents have preferred scratch and win and lucky draw. From the study it is evident that 104 respondents are satisfied with the ambience and customer service of the employees.

The study revealed that 106 and 107 respondents are satisfied with the location and the display of the products respectively.

The study revealed that 87% of the customers are not satisfied with the stock available.

The study revealed that 51% of the customers prefer to get information about the promotions through in-flight magazine, 48% prefer television ads, 6% mobile phone alerts and 1% website.

From the study it is proven that there is association between the preference for liquor and respondents gender, age and occupation.

There is no significant association between the preference of confectionery and respondents gender, age and occupation.

There is association between the amount spent on liquor and respondents age.

There is association between the amount spent on confectionery and respondents occupation.

There is association between amount spent on liquor and respondents occupation. There is association between amount spent on supermarkets and respondents occupation.

From the weighted average of the factors that influence customers such as price, taste, ingredients, package, size, discount and brand it was revealed that customers are influenced by the price of the products more than any other factors.

From the study it was also shown that discount on confectionery items is another most important factor that influence the buyers.

The weighted average of the promotional schemes reveals that buy one get one free and super value packs are more preferred promotional offers by the consumers.

It is shown from the study that passengers are least satisfied with the stocks available in the Duty Free.

CHAPTER 6 SUGGESTIONS AND CONCLUSION

CHAPTER 6 Suggestions and Conclusions

6.1 Suggestions
The retail section can be more competitive than domestic market due to the absence of the duty and tax. Can promote the products with exclusive ads that customers can find only while travelling. Currently no offers are promoted in the confectionery category. The suppliers can be exerted for promotions like buy one get one free and super value packs for confectionery goods which are most preferred by the passengers to increase the sales. The management can make avail of other confectionery brands like Ferraro which is the second most demanded brand. Passengers visiting duty free are not satisfied with the stocks that are available. Toblerone is another brand that can be made available which is consistently demanded by the consumers. Promoting the brands and duty free shop through in-flight magazine which induces the impulse buying behavior of the customers. Licensing agreement with suppliers to develop exclusive products for travelling customers. Developing impulse inducing promotional displays to increase the frequency of visit. Increasing the brands under candies category will increase the revenue.

6.2 Conclusion Airports in India are one of the most promising sectors for retail development. Today every premium brand in India is keen on participating in the airport's retail zone. Airport retail environment offers various brands of luggage, clothing and accessories that obviously have a high sensitivity and appeal. Destination food and souvenirs is another specialized segment. The new age traveler is being pampered in every possible way, and for this the credit goes to the newly emerging trend of airport retail. In today's busy schedule while keeping pace with the changing times, people are keen on doing a lot simultaneously. The smart and intelligent traveler today is no more an ordinary man as he wants nothing but the best. And that is what the retail stores are working for at the airports in India. To satisfy the customers the retailers must identify the preferences of the air travelers. The objective of the study is to understand the consumer preferences of airport retailing products with special references to confectionery goods at Cochin Duty Free Shop. The study finds that the consumers are more influenced by the price of the products. The customers also seek variety in brands available under confectionery. This study was undertaken with a limited sample of 115 numbers concentrating on the customers visiting the duty free at the arrival terminal. The study tries to find out the opinion of customers about their preferences and factors influencing them in purchasing confectionery goods. It is very important to study the consumer buying pattern. While there have been completed extensive research on buying behavior in most of categories like confectionery, tobacco, liquor etc little have done in travel retail environment. An extensive research into the airport retail environment will bring more insights to the buying behavior of the consumers while travelling.

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