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ISSN 2277 – 9809 (Online) ISSN 2348 - 9359 (Print) International Research Journal of Management Sociology & Humanities ISSN 2277 – 9809 (online) ISSN 2348 - 9359 (Print) An Internationally Indexed Peer Reviewed & Refereed Journal Shri Param Hans Education & Research Foundation Trust www.IRJMSH.com www.SPHERT.org Published by iSaRa Solutions IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809 ATTITUDE OF CONSUMERS TOWARDS COFFEE By Ms. Deepika Jindal Assistant Professor, Department of Commerce Daulat Ram College, Delhi University ABSTRACT India’s favourite beverage was tea always, but recent times have seen a change in this preference as more and more people like to drink coffee. The attitude of consumers towards coffee has changed as drinking coffee has now become a social statement. In South India, drinking coffee is a family habit especially the filter coffee but, in north India it is not so. Hence, there is a lot of scope in North India where the people can be tapped by coffee producers as well as coffee retail outlets, cafes and coffee shops. This paper focuses on studying the attitude of consumers towards coffee in terms of preference and reasons for increase in consumption of coffee. This is done by conducting a survey in Delhi. The aim is to find out how these changes in attitude can be used to further increase the domestic consumption of coffee and create more business for various stakeholders present in the Coffee Industry such as coffee producers, people involved in processing of coffee such as roasting, cafe and coffee tasters. Keywords: Attitude, Consumers, Preference, Coffee Industry, Social statement, Cafes INTRODUCTION The time has changed when discussions and meetings were done “Over a cup of tea”, now the statement is “Over a Cup of Coffee”. It has become a lifestyle and a social symbol. When it comes to beverage market, the drink which was favoured by majority of the people was tea but International Research Journal of Management Sociology & Humanity Page 813 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809 now the preference of the people has shifted to Coffee. It has become increasingly popular among the Indians over the last few years. As per the estimation of Coffee Board of India, the domestic coffee consumption for year 2013-14 is estimated to be 125,000 tonnes against the production of 315,000 tonnes. The domestic consumption is growing at the rate of 5 to 6 percent every year. The data for previous year is given as below: Source: http://www.business-standard.com/article/markets/india-may-turn-net-importer-of- coffee-as-consumption-rises-114012300850_1.html South India is the largest consumer of coffee at almost 75 per cent of the total consumption in India. The Coffee Board is making efforts to push the consumption in western, northern and eastern parts of the country. The reason for high consumption of coffee in southern India is due to tradition, where drinking coffee at home is part of daily routine of the household. The filter coffee is very famous in this region and the highest consumption is in Tamil Nadu followed by Karnataka, Andhra Pradesh and then Kerala. While in case of rest of India, filter coffee is not popular and coffee in general is not part of the daily routine of households, thus the consumption is comparatively less with respect to South India. But there has been emergence of more coffee drinkers and change in attitude of consumers towards coffee in Northern India since 2010. This is accompanied by growth in coffee retail chains at 15 percent per annum. Some of these outlets are Café Coffee Day, Barista, Costa Coffee and Starbucks. International Research Journal of Management Sociology & Humanity Page 814 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809 The coffee houses are extending their network, according to Sunalini Menon, Chief Executive of CoffeeLab, which provides evaluative services for coffee manufacturers; it is because they provide more than just coffee."They are a venue to socialize, finalize business deals, conduct interviews, listen to music and read in," she says. According to Cafe Mocha's CEO, Dharmesh Karmorkar, call centers have been one of the growth triggers. "Before the advent of night-time work enterprises, a coffee house's customer was limited to individuals who worked during the day. Now, in addition, we have an entire group of professionals who work a night-time shift." There is also the issue of small town individuals moving away from their families to larger cities for career opportunities that were not present before."This individualistic culture promotes the need for a venue to socialize with others of their age who share their interests," he adds."Several Indian students begin working at a very young age, sometimes right after high school. They have the purchasing power," he says. In keeping with the global coffee culture, purveyors in India offer the "total experience" - a huge range of blends, snacks, ambience, Wi-Fi-enabled (wireless Internet) environments and jukeboxes. The Commerce Ministry is working toward raising consumption levels to meet the government target of increasing the domestic coffee consumption to 1.6 million tons by 2016. The Indian Coffee Board has hired Carlos Brando, a Brazilian coffee consultant, to map out promotional strategies. Coffee giants such as Tata Coffee, CCD, Nestle, Narasus, Cothas and Kalmane have interacted with the expert. Brando was actively involved in doubling Brazil's annual domestic consumption from 390,000 tons in 1989 to 780,000 tons in 1998. His strategy for India is fivefold: competitive pricing (vis- a-vis tea), transparent labeling, highlighting health enhancing qualities, ease in making coffee at home, and establishing a coffee-drinking culture. Indian International Coffee Festival In order to create awareness about coffee, the Indian Coffee Board in association with India Coffee Trust had launched the Indian International Coffee Festival in 2002 where all the stakeholders interact to promote Coffee industry. The fifth session of IICF was organised at International Research Journal of Management Sociology & Humanity Page 815 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809 Banglore from 21st to 25th January which provided a platform for understanding and discussing the changing trends in Indian coffee industry in terms of consumption and production. It drew about 5000 coffee enthusiasts with 2000 business visitors and about 1000 participant delegates from India and around the globe. It included intense skill building workshops, informative sessions, product expo on farm mechanization, produce practices and the other relevant industry aspects. This led to all the stakeholders of coffee industry, who are part of the value chain from across the globe to present their views on how to expand their business further. The Coffee Board in association with Common wealth Agriculture Bureau International, CABI-South Asia had developed a mobile application, ‘Cafe’ Movel’ launched by Commerce Secretary last August to help coffee growers secure expert advice on various aspects of coffee cultivation. It also provided an opportunity for the coffee industry to unveil some of the amazing coffee, blends, new products and allied services. The Canara Bank who graced the event as one of the session sponsor had announced an interesting scheme for the start-up entrepreneurs in the coffee business. The event saw large participation and intense interaction which will help in the growth of Indian Coffee Industry. Thus with the change in consumer attitude towards coffee along with the efforts made by Government, the domestic consumption of coffee can be increased. OBJECTIVES The objective of this paper is to study the change in attitude of consumers towards coffee in Delhi and how this can be used to generate more business for Indian coffee industry. RESEARCH METHOD The research method used for collecting data is primary method. The data is collected through questionnaire and the sampling method used is convenient sampling and sample consists of 100 people. International Research Journal of Management Sociology & Humanity Page 816 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809 SCOPE OF STUDY The questionnaires were filled by people who were visiting coffee shops, cafes in Delhi, thus the scope of study is limited in terms of geography to Delhi. LITERATURE REVIEW In promoting -a product it is important that consumers' attitude towards the product is fully evaluated. Attitude is an individual enduring perceptual, knowledge based, evaluative and action oriented process with respect to an object or phenomenon. The three components of attitudes are a) belief component (cognitive) or a person's awareness or knowledge about a product b) feeling component (affective) or a respondent's liking and preference for a product and c) behaviour component is the readiness to respond behaviourally or what one has done or doing. In the marketing context, the knowledge component provides information for decisions regarding the consumers' awareness or knowledge about product features, ad campaigns, pricing, product availability etc. while the belief component provides information for decisions regarding determining buyers' positive or negative feelings, preferences of organizations marketing programme as well as those of competitors. The behaviour component is the respondents' intention to buy and actual purchase. Maslow's Hierarchy of Needs (1943), a theory of human motivation, provides a strong concept for consumer decision choice of coffee over tea. Two constructs of this theory, i.e. 'love and belonging' support the desire to create a sense of connection. Witt and Bruce (1972) and Bearden and Etzel (1982), suggest individuals seek social approval, wanting to be 'liked' or 'be like’ by other individuals in society. The desire to achieve social security motivates individuals to choose the beverage as others, by external public observation or internal, social group attitudes.
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