Presented by Group 2
Opportunity to convert food from a low
involvement product into a high involvement
product
It has resulted due to changes in :
1. Demographic pattern
2. Lifestyle
3. Purchasing capacity of Indian population
[Link] Involvement in Product Choice - A
Demographic Analysis
Family Life Cycle stages, age, income,
occupation and sex have significant influence
on the involvement of the high involved
product
Family life cycle, income and occupation do
not have significant influence on the low
involved product
2. Consumer Involvement Profiles : A new
Practical Approach to Consumer Involvement
Involvement can stem from one or a combination of the
five following antecedents:
Interest
perceived risk (with two subcomponents, importance and
probability)
The rewarding nature of the product (its pleasure value)
The perceived ability of brand choice to express one's
status, one's personality, or identity (sign value).
3. Low Involvement Decision Models: Can They
Exist?
1. CONSUMER INVOLVEMENT THEORY :
High involvement/rational
High involvement/emotional
Low involvement/rational
Low involvement/emotional
2. SOCIAL JUDGMENT THEORY :
Latitude of acceptance
Latitude of rejection
Latitude of non-commitment
To create high involvement in a low
involvement product
SCOPE :
1. Geographical : Delhi/NCR region
2. Product : Indian Food Industry
1. Primary Research
◦Stratified sampling has been used for a sample
◦Size of 114
2. Secondary Research
◦Analyzing factors that can make a product from low
involvement to high involvement ]
◦Formulating strategies and stating benefits
Hypoth Description
esis
H0 1 There is no significant difference attached to the importance of quality of food by
respondents belonging to high involvement group and low involvement group.
H0 2 : Addition of features like more flavours, ingredients and varieties (healthy food) does not
differentiate food varieties does not differentiate, ingredients of low involvement category
from high involvement category.
H0 3 There is no significant difference attached to the importance of brand of food/services by
respondents belonging to high involvement group and low involvement group
H0 4 : Purchasing behaviour and consumption of food is not associated with status or lifestyle.
H0 5 Price is not a differentiating factor for purchase and consumption of food from the low
involvement segment or the high involvement segment.
H0 6 Ambience and atmosphere at point of purchase does not affect purchase and
consumption of food products.
H0 7 Complementary offers, bundled offers and other loyalty programs does not make any
significant difference in the purchasing pattern.
H0 8 Purchasing pattern is independent of Age groups of customers.
H0 9 Purchasing pattern is independent of Income groups of customers.
Pilot study has been carried out on 21 cases
The aim was to increase the value of the
cronbach’s alpha to make the questionnaires
more reliable
The study led to a better value for the
cronbach’s alpha
Questions Initial Changes made Reason New results
coefficient
results
Frequency High negative Questions To make it in Alpha value is
roadside reversed line with the improved
other similar
questions.
Discounts Low negative Question Same variable Alpha
deleted has been improved.
covered in
another
question.
Time spent High Negative Questions To make in line Alpha
reversed and with the similar improved
range of questions.
options
modified
Alpha before pilot Alpha after pilot
study study
0.698 0.799
Analysis by income group
Variables p-Value Confidence Remarks
Level
Frequency_high-end 0.036 95% Higher income groups are more frequent
visitors of high-end restaurants.
Variety 0.05 95% Consumers with more income look for
more variety.
Ambience 0.002 99% Consumers with higher income are more
conscious of surrounding ambience.
Staff Behavior 0.002 99% Higher income group consumers want
good staff behaviour.
Alone_highend 0.045 95% Higher income group consumers prefer
visiting branded chains even when alone.
Money Spent 0.001 99% Money spent by higher income group
consumers is more during purchase.
Friends_roadside 0.001 99% Lower income group prefer having road-
side food when in company of friends.
Analysis by occupation
Variables p-Value Confidence Remarks
Level
Discounts 0.062 95% Students and housewives look for more
discounts.
Alone_roadside 0.011 99% Students prefer roadside food while
alone.
Alone_highend 0.001 99% Bussinessman & Elite professionals prefer
restaurants while having food alone.
Friends_highend 0.008 99% Businessman and professionals prefer
taking friends to highend restaurants.
Money spent 0.017 95% Business man and working professionals
can afford to spend more money than
students.
Analysis by age
Variables p-Value Confidence Remarks
Level
Location 0.024 95% Aged people prefer nearby locations.
Friend_highend 0.017 98% Middle Aged group prefer having food
with friends at highend restaurants.
Family_roadside 0.010 99% Younger people don’t mind having
roadsidefood with siblings,while elderly
people prefer taking their families to
restaurants.
Analysis By Gender
Variables p-Value Confidence Remarks
Level
Frequency_branded_fc 0.035 95% Female prefer going to branded chains
more compared to male.
Ambience 0.009 99% Female are more attracted by good
ambience compared to male.
Staff 0.012 99% Female want more respect and regard
from staff and prefer them to be well
dressed and well-mannered.
Time_spent 0.001 99% Time spent by female are more while
making a purchase decision compared to
male.
After applying factor-analysis we reduced the factors from 32 to 6.
Factors Give importance to: Are influenced by: Prefer having food at: Can spend:
Elite attitude Brand, quality, variety, Newspaper, High end restaurants More of both money as
ambience, staff with friends, family well as time.
TV-Commercials
behaviour and even alone.
Price- Sensitivity Price, location, Discounts and WoM. Road side stalls except Spend Less time and
discount when with family less money.
Analysing Quality and staff TVC and radio Roadside stalls More time and less of
behaviour money.
Traditional-attitude Quality,variety Newspapers, Roadside stalls when Less of time as well as
insertions,WoM alone and with friends money.
also, while prefer high-
end otherwise. They
generally don’t prefer
branded food.
Tech-savvy Staff-behaviour, Internet Branded restaurants More of money and
location, price less of time.
Economical Price, Brand, Location Newspapers Generally prefer road Time spent more and
side and seldom less of money
branded.
After applying cluster analysis we have managed to group
our 114 respondents into 5 major clusters having the
following
Clusters Givecharacteristics:
Are influenced Prefer having Can spend: Factors Involvement
importance to: by: food at: Present
Brand Brand, quality, Internet, WoM, High end Moderate Elite-Attitude Females and
Conscious variety, TV- restaurants and amount of both higher income
ambience, staff Commercials branded FCs money as well groups.
behaviour and as time.
WoM
High Class Ambience,quali TVCs,Newspap High-end only Spend more of Elite-Attitude High-end
ty and staff ers and WoM time as well as income groups.
money.
Loyals Price, variety WoM, TVC Roadside stalls Less of time as Price sensitive Females,
and staff well as money as well as middle income
behaviour traditional group, students
Best-bargainers Quality, variety, Newspapers, Nearest possible Less of time as Price sensitive. Young
price, location insertions, stalls providing well as money. generation
discounts varieties at below 30 yrs
lower price.
Advanced Ambience, Radio, internet Alone they Less time and Tech-savvy. Young
staff-behaviour, prefer roadside more money generation,
discount, price, and with others mostly males
quality, brand go to branded
FCs.
Hypothesis Result Remarks
H01 Accepted Quality is important for all groups
H02 Rejected Variety is important for Brand conscious, Loyals and best
bargainers while not that for others so much.
H03 Rejected Brand is important for Brand conscious and advanced group more
than others
H04 Rejected Lifestyle impacts purchasing behaviour as higher income groups
prefer more high-end restaurants and branded FCs than lower
segments.
H05 Rejected Price is very important factor for best bargainers, Advanced and
Loyals
H06 Rejected Ambience is again very important for brand conscious, high class
and advanced groups
H07 Rejected Complementary offers and discounts are important influencers for
Advanced and best bargainers groups
H08 Rejected Preference differs with Age
H09 Rejected Preference differs with Income level
Thank you… !