PROJECT REPORT

ON
THE STUDY OF BUYING
BEHAVIOR OF CONSUMERS
WITH RESPECT TO ORGANIC &
FAST FOOD

Project submitted to: Submitted By:

GROUP 5
MBA General
Dr. Anu Prashant Shreya Rastogi-A22
Amity Business School Sonali Gupta-A23
Amity University Shreya Shivhare-A24
Ritu Bansal-A25
Vaishali Chauhan-A26

1
 ACKNOWLEDGEMENT

We would like to express our immense gratitude towards our University, Amity
University, which created a great platform to attain profound managerial skills.

We express our sincere regard to Dr. Anu Prashant, faculty of Amity Business
School for providing us proper guidance and help for our research project and the knowledge given by
her has come a long way to help us complete this research.

She provided must need constructive criticism, unending inspiration, valuable and pain taking
guidance, encouragement, untiring and constant help, and above all her positive attitude towards our
abilities made the achievement of this goal, a challenging enjoyable, and rewarding and stimulation
experiences.

Lastly, we would like to thank all the people who took part in our research work.

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 Table Of Content

Serial
No.
Title

1. Introduction

2. Literature Review

3. Research Methodology

4. Data Analysis and Interpretation

5. Conclusion and Findings

3
 ABSTRACT

The following paper, present the views of people their motivation and perception regarding
organic food and fast food. Separate research has been conducted, hypothesis formed and results
are analyzed to observe what is the effect of different variables like price, taste, availability etc.
for the buying of organic and fast food. The purpose of this study is to know, the major factors
that influence the consumer to buy organic/fast food. The basic research design followed in the
study is exploratory cum descriptive research design.

Major motivational factor behind consumers buying organic food is the health factor i.e. the fact
that they have no preservatives and have high nutritional value motivates the consumer to buy
the product also some people favor organic food over traditional food because they perceive that
food grown organically poses no threat to the environment. However, high price, less amount of
knowledge and availability demotivates the consumer.

Eating junk food regularly is linked to obesity and chronic health conditions such as high blood
pressure, but many people still choose junk food sources over their healthy, nutritious whole
food counterparts. Junk food is typically cheap, processed and pre-packaged, making it easily
available and therefore increasing the inclination of people towards junk food.

Different tests have been conducted i.e. chi- square and correlation to find the relationship
between the variables to come up to this conclusion that income has no effect on the buying
behavior of consumers with respect to organic food whereas it has an effect on the buying
behavior of consumers with respect to fast food by conducting chi square test .

With the help of correlation the conclusion came up was, reasons to purchase organic food and
why do people eat junk food are negatively correlated.

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 CHAPTER-1

INTRODUCTION

5
Organic food is food produced by methods that comply with the standards of organic farming.
Standards vary worldwide, but organic farming in general features practices that strive to cycle
resources, promote ecological balance, and conserve biodiversity. Organizations regulating
organic products may restrict the use of certain pesticides and fertilizers in farming. In general,
organic foods are also usually not processed using irradiation, industrial solvents or synthetic
food additives. Consumers purchase organic foods for different reasons, including concerns
about the effects of conventional farming practices on the environment, human health, and
animal welfare.

The most important reason for purchasing organic foods seems to be beliefs about the products
health-giving properties and higher nutritional value. These beliefs are promoted by the organic
food industry, and have fueled increased demand for organic food despite higher prices and
difficulty in confirming these claimed benefits scientifically. Organic labels also stimulate the
consumer to view the product as having more positive nutritional value.

Organic agriculture is one among a broad spectrum of production methods that are supportive of
the environment where inorganic chemical free methods of production and post-harvest of
crops is practiced. It has been gaining gradual momentum across the world both in terms of
production and consumption. The trend towards organic has emerged due to the of increased
consciousness of sustainable methods of agriculture, awareness conservation of environment as
well as health hazards associated with agrochemicals and consumers preference for safe and
hazard-free food.

Fast food is a type of mass-produced food that is prepared and served very quickly. The food is
typically less nutritionally valuable compared to other foods and dishes. While any meal with
low preparation time can be considered fast food, typically the term refers to food sold in a
restaurant or store with preheated or precooked ingredients, and served to the customer in a
packaged form for take-out/take-away .

Fast food restaurants are traditionally distinguished by their ability to serve food via a drive-
through. Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food
restaurants (also known as quick service restaurants). Franchise operations that are part of
restaurant chains have standardized foodstuffs shipped to each restaurant from central locations.

The consumption of different types of fast food is increasingly growing in all parts of the world,
both in developed and developing countries. Because of the changes and transitions in the
lifestyle and dietary habits of people, an increasing number of people from different age groups,
particularly adolescents and young adults, are inclined toward consuming fast food

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 Over the past decades, the consumption of fast foods has increased worldwide. Recent studies
have shown that the trend of fast-food consumption among Indians as well as the number of fast-
food restaurants in India are considerably increasing.

Fast foods are quick to prepare, easy to access, moderately inexpensive, and favored by people of
most age groups. Further, they are typically served in large portions and contain high levels of
energy, sugar, and salt, along with low levels of micronutrients and fiber.The frequent
consumption of fast foods among people in their teens and in their twenties might be attributed to
the specific qualities of such types of foods that are fast to prepare, convenient, and relatively
inexpensive.

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 CHAPTER-2

LITERATURE REVIEW

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 Gemma C. Harper (2013), This paper is derived from a larger scale project investigating
consumer attitudes towards organic food in the UK presents focus group results on consumer
perceptions, attitudes and behavior in relation to two key interrelated food trends: organic
food and animal welfare. The results indicate that consumers often confuse organic and
free-range products because they believe that organic is equivalent to freerange food.
Focus group discussions were conducted to identify the main beliefs and attitudes towards
organic food of both organic and nonorganic food buyers. Results indicate that, although
health and food safety concerns are the main motives for organic food purchases, ethical
concerns, specifically in relation to standards of animal welfare, play a significant influencing
role in the decision to purchase organic food. The results are consistent with parallel research
into consumer concerns about animal welfare, which showed that consumers are primarily
concerned about food safety issues.

Rene Shaw Hughner, Pierre McDonagh, Andrea Prothero, Clifford J. Shultz II ,Julie
Stanton(2011), This paper integrates and synthesizes the findings of published research on
organic food consumption. We identify several themes that reflect the various rationales used
by consumers when deciding to purchase organic food. The literature clearly indicates that the
word organic has many meanings, that consumers of organic foods are not homogeneous in
demographics or in beliefs, and that further research could help better describe the various
constituencies that are often lumped together as organic food consumers. The organic and
broader food industries must better understand the variety of motivations, perceptions, and
attitudes consumers hold regarding organic foods and their consumption if their own long-term
interests, as well as those of other stakeholders of food marketing, are to be best served.

Susanne Pade (2013), The purpose of the paper is to explore the values that underlie
consumers purchasing decisions of organic food. Findings show that most consumers associate
organic at first with vegetables and fruit and a healthy diet with organic products. Fruit and
vegetables are also the first and in many cases only experience with buying organic product.
The decisionmaking process is complex and the importance of motives and barriers may vary
between product categories.

Raffaele Zanoli-(2011), The paper presents partial results from an Italian study on consumer
perception and knowledge of organic food and related behavior. Uses the meansend chain
model to link attributes of products to the needs of consumers. In order to provide insights into
consumer motivation in purchasing organic products, 60 respondents were interviewed using
hard laddering approach to the measurement of meansend chains. The results (ladders) of
these semiqualitative interviews are coded, aggregated and presented in a set of hierarchical
structured value maps. Even if organic products are perceived as difficult to find and expensive,
most consumers judge them positively. All consumers associate organic products with health at

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different levels of abstraction and want good, tasty and nourishing products, because pleasure
and wellbeing are their most important values. Results show that differences exist between
groups of consumers with respect to their frequency of use (experience) of organic products
and level of information (expertise). Reports and discusses results on consumer cognitive
structures at different level of experience.

Alka singh-(2009), Provided that the market for organic products in India is at the beginning of
its development. There is no sufficient knowledge about organic consumers in India The
objective of this paper is to gain knowledge about consumer attitudes toward organic products
in the capital of India. Indian consumers consider organicallygrown products as very healthy, of
good quality and tasty. However, these products are perceived as rather expensive and of
questionable appearance. Consumers are not very familiar with the supply of ecologically
grown products in the market. Some groups of consumers have more positive attitudes toward
organic products, and they exhibit an increased willingness to pay higher prices for these
products. Therefore, marketing strategies for organic products should be targeted towards such
groups.

AP Goyal(2009), paper seeks to estimate importance of various factors affecting the choice of
fast food outlets by Indian young consumers. India is among the top 10 markets for weekly fast
food consumption among the countries of Asia pacific region. Most preferred outlet is pizza
hut.in India, 21st century people are more health conscious. Food habits of youngsters are
influenced by factors such as environment at home, educational environment and accessibility.
People prefer home cooked food in comparison to fast food but still people go to fast food
restaurants for fun and entertainment with friends.

John Kearney (2010), paper presented the world consumption pattern trends and drivers.
When considering the food policy a pattern should be followed or considered:

Consumption per capita has increased substantially over the last decades and
population growth is slowing down.
Dietary pattern is changing people are in favor of vegetable oils and animal proteins.
Basically the intake of meat, fish are increasing and vegetable roots, tubers pulses and
fruits are decreasing .
Satish kumar Singh (2011), presents the buying behavior of consumers for food
products in organized food retailing. It showed that there are various factors affecting
consumer behavior:-
Culture
Alternatives

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 Post consumption evaluation
Consumption pattern

Mr. Inderpreet Kaur and DR. Sukhdev Singh(2008), Paper entitled A JOURNEY FROM
CONVENTIONAL FOOD TO CONVINIENT FOOD showed that Indian lifestyle has undergone
many changes. Food and taste habits are no exception to this. Indian households welcome food
with the convenience in cooking and purchase. With the increasing impact of TV ads western
education food habits, families are more prone to ready to eat food. Married people consume
more cereal, processed food for breakfast.

International Journal Of Management Economics And Social Sciences, presented the

consumers attitude and intention towards organic food purchase. The purchase of organic food
production is as low as compared to non-organic .organic food is expensive. It leads to the
consumers to have negative attitude to buy organic food. There is also a difference of gender,
females consume more of organic food as compared to males.

Zafar, Iqbal andSaifAbbasi et al (2002), the study emphasizes on socio-economic (age of the
respondents, education, profession, household income per month, family size) characteristics
plays a very crucial role while selecting any of the fast food restaurants. From which education
was the most important feature due to which income level raises. And many of them were
young, well-educated and belongs to nuclear families hence most of them preferred eating
food outside just to save time and for taste as well. Therefore, it was necessary to educate
people for choosing a balance diet.

Anand (2011), explored the impact of demographics and psychographics on young consumers
food choice towards fast food in Delhi, India. The key determinants impacting consumers food
choice were found out to be passion for eating out, socialize, ambience and taste of fast food
and convenience for dual-income families in urban India. Findings indicated that fast food
companies can no longer rely on convenience as USP in India, unless the implication of same on
consumers health is given equal importance in the years to come.

Dimech et al. (2011), found that most of the consumers considered safety as the most
important quality aspect in fruits and vegetables, a credence attribute which cannot be checked
by consumers. It is evident that the perception or attitude towards food attributes such as
taste, nutritional qualities, and convenience are the key determinants of food choices and these
attitude and perception are in turn influenced by a number of personal characteristics such as
education, socio economic status, age, sex.

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 CHAPTER-3

RESEARCH METHODOLOGY

12
 INTRODUCTION

This chapter clearly defines the research methods used to conduct the study. It explains how the
necessary data and information to address the research objectives and questions w a s collected,
presented and analyzed. Reasons and justifications for the research design, research instruments,
data sources, data collection techniques, data presentation techniques and analytical techniques
used.

OBJECTIVES OF THE STUDY

To study the factors affecting perception of consumers towards organic and fast food.
To study the buying behavior of consumers towards organic and fast food .

RESEARCH DESIGN
Research design is a plan or structure for an investigation or a list of specifications and procedure
for conducting and controlling a research project. In other words it can be described as a master
plan which indicates the strategies for conducting a research. A research design serves as a
master plan of the methods and procedures that should be used to collect and analyze data
needed by the decision maker. The research design is a deliberately planned arrangement of
conditions for the analysis and collection of data in a manner that aims to combine relevance to
research purpose with the economy procedure.

In the present study, exploratory cum descriptive study is used to obtain and analyze the data.
A Descriptive research design helps portray an accurate profile of persons, events and situations.
A descriptive study is taken in order to ascertain and describe the characteristics of the variables
of the customers behavior for buying organic/fast food. In descriptive research it is multi-cross
sectional as two samples are drawn from the population.

In this study, exploratory research includes literature reviews in order to gain more information
about the research problems to understand the factors affecting the purchasing behavior. Thus,
the present study is Exploratory-cum-Descriptive in nature as it endeavors to assess the
relationship between the factors affecting and the perception of consumers towards fast/organic
food.

SAMPLING TECHNIQUE
Sampling techniques are methods used to select a sample from population by reducing it to a
more manageable size. Sampling techniques are used when inferences are made about the target

13
population. Researchers use stratified random sampling to obtain a sample population that best
represents the entire population being studied

In the present study, Stratified Random Sampling is used for the selection of the sample. The
strata are based on members shared attributes or characteristics. In this study, the strata are
employees and students and sample has been chosen randomly from each strata. The reasons for
using this sampling technique in the study are:
The stratified random sample provides us with a sample that is highly representative of
the population being studied, assuming that there is limited missing data.
The stratified random sample also improves the representation of particular strata
(groups) within the population, as well as ensuring that these strata are not over-
represented. Together, this helps the researcher to compare strata, as well as make more
valid inferences from the sample to the population.
A stratified sample can guard against an "unrepresentative" sample (e.g., an all-male
sample from a mixed-gender population).

SAMPLE SIZE
Sample size has an effect on how the sample findings accurately represent the population. It is an
important feature of any empirical study in which the goal is to make inferences about a
population. The larger the sample is, the more likely to have accurate result.
The sample size taken in this study is 200.

SOURCES OF DATA
Data sources are classified as being either primary or secondary sources. A source is primary if
the data collector is the one using the data for analysis. A source is secondary if one organization
or individual has compiled the data to be used by another organization or individual. Both
primary and secondary data has been collected in this research. Secondary data has been
collected from the websites, research articles, and journals. On the other hand, the primary data
has been collected by the means of structured questionnaire which was made on the basis of
literature review. The questionnaire was send to the respondents to know their responses about
the purchasing behavior towards organic/fast food.

RESEARCH INSTRUMENT
Research instrument basically means the way or the method the researcher can collect the data.
In this study, Questionnaire is used as a research instrument. The questionnaire consists of the
questions based on the objectives of the study. Questionnaire refers to series of questions asked

14
 to obtain statistically useful information about a given topic. They are a valuable method of
collecting a wide range of information from a large number of respondents. Questionnaire is
chosen because of the following reasons:
Large amount of information can be collected from a large number of people in a short
period.
The result of the questionnaire can be quickly and easily quantified.
It is a cheap source to take out the information from respondents.

There are four types of scales that can be used in a research instrument are Nominal,
Ordinal, Interval and Ratio scale. In the above questionnaire, there are three scales that
are used to frame the questions. They are:
Nominal Scale - A nominal scale of measurement deals with variables that are non-
numeric or where the numbers have no value. In other words, we can put them in any
order and it wouldn't matter.
Example:
What is your preferred type of food on daily
basis?

o Organic food
o Fast food

Ordinal Scale - An ordinal scale of measurement looks at variables where the order
matters but the differences do not matter. When you think of 'ordinal,' think of the word
'order.'
Example:
How do you feel today?

o 1-Very Unhappy
o 2-Unhappy
o 3-Ok
o 4-Happy
o 5-Very happy
Interval Scales- Interval scales are numeric scales in which we know not only order, but
also the exact difference between the values.
Example:
What is your income per month?

o Below 10000
o 10000-20000
o 20000-30000
. o 30000-40000
o 40000 and above
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 STATISTICAL METHODS
Statistical methods are required to ensure that data are interpreted correctly and that apparent
relationships are meaningful (or significant) and not simply chance occurrences. The tests
conducted in the following study are:

CHI- SQUARE TEST

CORRELATION

CHI- SQUARE TEST

A chi-squared test, also written as 2 test, is any statistical hypothesis test wherein the
sampling distribution of the test statistic is a chi-squared distribution when the null
hypothesis is true. Without other qualification, 'chi-squared test' often is used as short for
Pearson's chi-squared test.

Chi-squared tests are often constructed from a sum of squared errors, or through the
sample variance. Test statistics that follow a chi-squared distribution arise from an
assumption of independent normally distributed data, which is valid in many cases due to
the central limit theorem. A chi-squared test can be used to attempt rejection of the null
hypothesis that the data are independent. The Chi-Square test of Independence is used to
determine if there is a significant relationship between two nominal (categorical)
variables. The frequency of one nominal variable is compared with different values of
the second nominal variable.

CORRELATION

The correlation is one of the most common and most useful statistics. A correlation is a single
number that describes the degree of relationship between two variables. Correlation is a bivariate
analysis that measures the strengths of association between two variables and the direction of the
relationship. In terms of the strength of relationship, the value of the correlation coefficient
varies between +1 and -1. When the value of the correlation coefficient lies around 1, then it is
said to be a perfect degree of association between the two variables. As the correlation
coefficient value goes towards 0, the relationship between the two variables will be weaker. The
direction of the relationship is simply the + (indicating a positive relationship between the
variables) or - (indicating a negative relationship between the variables) sign of the correlation.

16
 CHAPTER-4

DATA ANALYSIS AND

INTERPRETATION

17
 CHI-SQUARE TEST

The first table is the Case Processing summary, which tells us the number of valid cases
used for analysis. Only cases with non-missing values for both income and organic food
can be used in the test.

Null Hypothesis: There is no relationship between the consumption pattern of organic/fast food
and the income of the consumer.
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
What is your income per
month? * How much do
200 100.0% 0 0.0% 200 100.0%
you spend on organic
food monthly?
What is your income per
month? * How much do
200 100.0% 0 0.0% 200 100.0%
you spend on fast food
monthly?

The next tables are the cross tabulation and chi-square test results.

What is your income per month? * How much do you spend on organic food
monthly?

Crosstab
Count
How much do you spend on organic food Total
monthly?
1 2 3 4 5
1 27 26 13 7 1 74
2 8 20 9 5 1 43
What is your income
3 10 15 7 4 1 37
per month?
4 5 9 6 4 0 24
5 8 5 7 1 1 22
Total 58 75 42 21 4 200

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 Chi-Square Tests

Chi-Square Tests

Value df Asymp. Sig. (2-

sided)
a
Pearson Chi-Square 11.565 16 .773
Likelihood Ratio 12.085 16 .738
Linear-by-Linear Association 1.034 1 .309
N of Valid Cases 200

a. 10 cells (40.0%) have expected count less than 5. The minimum

expected count is .44.

The key result in the Chi-Square Tests table is the Pearson Chi-Square.

The value of the test statistic is11.565

Because the test statistic is based on a 5x5crosstabulation table, the degrees of freedom
(df) for the test statistic is

df=(R1)(C1)=(51)(51)=44=16

The corresponding p-value of the test statistic is p = 0.773

DECISIONS AND CONCLUSIONS

Since the p-value is greater than our chosen significance level ( = 0.05), we accept the null
hypothesis. Rather, we conclude that there is not enough evidence to suggest an association
between income and consumption of organic food.

Based on the results, we can state the following:

No association was found between income and consumption of organic food p=0.773

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 What is your income per month? * How much do you spend on fast food
monthly?

Crosstab
Count
How much do you spend on fast food Total
monthly?
1 2 3 4
1 30 21 13 10 74
2 12 11 7 13 43
What is your income
3 4 8 11 14 37
per month?
4 2 2 9 11 24
5 7 3 3 9 22
Total 55 45 43 57 200

Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 32.382a 12 .001
Likelihood Ratio 35.163 12 .000
Linear-by-Linear
16.639 1 .000
Association
N of Valid Cases 200
a. 2 cells (10.0%) have expected count less than 5. The
minimum expected count is 4.73.

The key result in the Chi-Square Tests table is the Pearson Chi-Square.

The value of the test statistic is 32.382

Because the test statistic is based on a 5x4crosstabulation table, the degrees of freedom
(df) for the test statistic is

df=(R1)(C1)=(51)(41)=43=12
The corresponding p-value of the test statistic is p = 0.001

20
 DECISIONS AND CONCLUSIONS

Since the p-value is less than our chosen significance level ( = 0.05), we reject the null
hypothesis. Rather, we conclude that there is evidence to suggest an association between income
and consumption of fast food.

Based on the results, we can state the following:

There is an association between income and consumption of fast food p=0.001

CORRELATION

Correlations

Reasons to Why do you eat

purchase junk food, rank
organic food according to
your
preference:-
1 being most
preferred,
8 being least
preferred [Easily
available]
Reasons to purchase Pearson Correlation 1 -.079
organic food Sig. (2-tailed) .267

N 200 200
Pearson Correlation -.079 1

Why do you eat junk food Sig. (2-tailed) .267

N 200 200

This means that there is a weak relationship between two variables. This means that changes in
one variable are not correlated with changes in the second variable.

21
 DECISIONS AND CONCLUSIONS

When Pearsons r is negative (-)

This means that as one variable increases in value, the second variable decreases
in value. This is called a negative correlation. In our study, our Pearsons r value
of -0.79 was negative.
These variables do not tend to increase together.

22
 CHAPTER-4

CONCLUSION &FINDINGS

23
 FINDINGS
43.5% of the respondents are employees and 56.5% respondents are students.
37% of the respondents have income below10000, 21.5% have income between
10000- 20000, 18.5% have income between 20000-30000, 12% of the
respondents have income between 30000-40000, 11% have income 40000 and
above.
59.5% prefer organic food and the remaining 40.5% prefer junk food.
87.5% have consumed organic food.
16% of the respondents consume organic food once a week, 29% of them once in
a month, 35.5% on daily basis and 19.5% twice a week.
Organic nation is the most preferred brand in organic food whereas in fast food
pizza hut is the most preferred brand
45% of the respondents purchase organic food because they are health conscious,
15% purchase because they are safe and reliable, 14% purchase due to flavor and
taste, 12% purchase because there are no preservatives added and 11% purchase
because they are environment friendly and the 3% purchase due to other reasons.
26.5% buy organic food from online stores, 66% buy from grocery stores and
7.5% from other sources.
29% spend below 2000 on organic food, 37.5% between 2000-4000, 21% spend
between 4000-6000, 10.5% between 6000-8000 and 2% spend 8000 and above on
organic food.
14% eat in fast food outlets once a week, 47% twice a month, 24% twice a week
and 15% thrice a month.
Majority of the respondents use Ghee at their home and the least preferred fat is
Coconut oil.
65% of the respondents check the nutritional value on labels before buying food
products whereas 35% do not check.
Out of our respondents 30% are advised by the physician to loose weight, 25% to
gain weight and 45% none of the above.
20% of the respondents eat junk food due to easy availability, 16.5% eat because
it is ready to eat, 18% eat because it is tasty, 14% eat because it is cheap, 10% eat
due to endorsements, 10% eat due to word of mouth, 6% eat due to their lifestyle
and the remaining 5.5% due to peer pressure.
27.5% spend between Rs 500-1000 per month on fast food, 27.5% spend 1000-
1500, 21.5% spend 1500-2000 and 28.5% spend above Rs. 2000.
57.1% of the respondents say that marketing campaign affects their buying
behavior.

24
 CONCLUSION
From the primary research conducted we concluded that factors like taste, altruism, availability
of fast and organic food health conscious nature and income of the consumer are some of the
important factors affecting the perception of the consumer behind buying organic and fast food .
in this study we concluded that health conscious nature of the consumer is the most important
factor that affects their perception behind buying organic food whereas easy availability of fast
food is the reason why consumer go for fast food. Both these factors i.e. Easy availability and
health conscious nature of the consumer are independent of each other and there was negative
relationship between them. Moreover it can be concluded that income of the consumer plays an
important role in the consumption pattern of consumer for fast food but not for organic food.

25
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