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.
Lewis (2012) argues that superficial desires and behaviours are less influential factors and basic needs are more common-human. Maslow's concept of 'psychological needs,' the need for life basics, supports this alternative motivator, therefore the drive to satisfy thirst alone is another determinant for visiting a coffee shop. The study of needs provides a 'partial explanation of motivated behaviour' (Witt and Wright, 1992: 44), but according to Mill and Morrison (1985: 2) individuals are often unaware of the real reason for doing certain things, suggesting true
International Research Journal of Management Sociology & Humanity Page 817 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809 motivations lie hidden in the subconscious. So other influential factors must be examined as reasons why people visit a coffee shop.
DATA ANALYSIS
The data for the report was collected by asking people from the sample to fill the questionnaire so prepared. The questionnaire was filled by people at different coffee shops within Delhi region. The analysis and interpretation of the data is given below:
1. Like to drink coffee
LIKES COFFEE
5% 15%
85%
YES NO CAN'T SAY
The survey shows that 85 % of people visiting the Cafés or Coffee retail outlets like to drink coffee while 15% don’t like to drink coffee and 5 % were not sure.
2. Occupation
International Research Journal of Management Sociology & Humanity Page 818 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
OCCUPATION
15%
35%
20%
30%
SERVICE STUDENTS BUSINESS OTHERS
As per the analysis of the survey, of 85% people who like to drink coffee, majority of them belong were into services then followed by students, business class and others, the percentage as given above.
3. Marital status
MARITAL STATUS
49% 51%
MARRIED UNMARRIED
International Research Journal of Management Sociology & Humanity Page 819 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
Most of the people who like to drink coffee are married and these includes all the 24% belong to business class, 37% to service class and rest to other profession. For unmarried, it includes all the students and remaining of the before mentioned occupation.
4. Educational Qualification
EDUCATIONAL QUALIFICATION 2%1% 17%
43%
37%
UNDERGRADUATE GRADUATE POST GRADUATE PHD OTHERS
The survey shows that people drinking coffee are majorly post graduates or graduates, followed by 17% under graduates and only 1% of people are PhD holders. The post graduates consist of 60% of the service people, 30% percent consist of students and 10% to businessmen or businesswomen.
5. Frequency of drinking coffee
International Research Journal of Management Sociology & Humanity Page 820 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
FREQUENCY OF DRINKING COFFEE
11% 25%
64%
ALMOST DAILY OCCASSIONALY RARELY
The survey shows that only 64% of the people prefer to drink coffee occasionally which means 2-3 times in a month, 25 % of people prefer to drink coffee rarely that once in 2-3 months and only 11% drink coffee almost daily which is 3 to 4 times in a week.
6. Occasions
OCCASION TO HAVE COFFEE
4% 23%
34%
11%
28%
PARTY/ GET TOGETHERS FEELING LOW MEETINGS DATE OTHERS
The survey shows that people who drink coffee occasionally, 34% of them drink coffee when going on a date with their spouse or girlfriends/ boyfriends. The people who drink coffee while
International Research Journal of Management Sociology & Humanity Page 821 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809 going for get together or party consist of 23%, 28% come for coffee for meetings and official purposes, 11% have coffee when they are stressed out or feeling low and 4% on other occasions.
7. Order food along with Coffee
ORDER FOOD WITH COFFEE
32%
68%
YES NO
As per the survey, 68% of people prefer to order some food be it snacks or cookies along with coffee be it what time of the day may be while only 32% just came to have coffee.
8. Preference for type of coffee
International Research Journal of Management Sociology & Humanity Page 822 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
PREFERENCE OF COFFEE
34% 41%
25%
HOT COFFEE COLD COFFEE DEPENDS ON SEASON
The survey shows that 41% of people prefer to drink hot coffee while 25% cold coffee and 34% says it depends on the season being in winters they prefer hot coffee while in summer usually go for cold coffee.
9. Place to have coffee
PLACE TO HAVE COFFEE
40% 49%
11%
COFFEE OUTLETS/ CAFÉ HOME OTHERS
The survey shows that 49% of the people prefer to drink coffee at cafe’s or coffee retail outlets & 40% prefer to take coffee at other places whereas only 11 % prefer to take coffee at home.
International Research Journal of Management Sociology & Humanity Page 823 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
10. PEOPLE THEY PREFER TO HAVE COFFEE WITH
PREFER TO HAVE COFFEE WITH
5% 7% 24% 10%
20% 34%
FRIENDS COLLEAGUES/ CLIENTS BOYFRIEND/ GIRLFRIEND FAMILY ALONE OTHERS
The survey shows that 34% people prefer to take coffee with boyfriend/girlfriend or spouse, 20% prefer to take coffee with colleagues, 24% prefer to have coffee with friends, whereas 10% prefer to take coffee with family & only 7% prefer to take alone & also 5% prefer to take with others.
11. Money spend at Coffee Shop
AVERAGE MONEY SPEND AT COFFEE SHOP
15% 11%
32%
42%
Less than Rs100 Rs 100- 500 Rs 500-1000 Rs 1000 & above
International Research Journal of Management Sociology & Humanity Page 824 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
As per the survey, average amount of money spend at coffee shop in one visit is usually between Rs 100 to Rs 500 by 32% people who drink coffee, 11% spend less than Rs 100, 42% between Rs 500 to Rs 1000 and only 15% spend between Rs 1000 to Rs 2000.
12. Factors Influencing Visit to Coffee Shop
FACTORS INFLUENCING TO VISIT COFFEE OUTLETS
10% 15% 7%
21% 26%
21%
VAUE FOR MONEY TASTE PEER GROUP SERVICE QUALITY AMBIENCE ALL
The consumers look for various factors while visiting the coffee shops or cafes or outlets. 26% look for taste of coffee, 21% go due to peer group preference, and 21% go for services provided such as delivery, Wi-Fi and many more. 7% look forward to ambience, 15% wants value for money and 10% go for all the above factors.
13. Preference of non coffee drinkers at Cafes
International Research Journal of Management Sociology & Humanity Page 825 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
BEVERAGE PREFRENCE OF NON COFFEE DRINKERS
8%
17% 42%
33%
TEA SMOOTHIES/ SHAKES SOFT DRINK OTHERS
In case of non coffee drinkers who are visiting the café or coffee shops, 42% of these non coffee drinkers will have tea, 33% will go for smoothies or milk shakes, 17% for cold drinks and 8% will go for other options.
14. Like to try coffee in future
TRY COFFEE IN FUTURE
35%
65%
YES NO
The survey shows that 65 % of the non coffee drinkers would like and only 35 % of them would not like to drink coffee in future.
International Research Journal of Management Sociology & Humanity Page 826 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
FINDINGS & SUGGESTIONS
With the above data analysis, the following are the findings and suggestions:
There has been an increase in no. of people of drinking coffee especially among the people working in corporate and the students. The drinking of coffee has become a social statement where people like to catch up with friends or discuss about business issues over a cup of coffee. In case of students and young workforce, people prefer to go to cafes for a date or meet their spouse. This will increase further as with the use of social media, more and more youngsters are getting involve in relationships. As the survey was done in Delhi where coffee drinking is not a custom unlike South India, most of the people drink coffee occasionally. These are the consumers that have started experiencing this beverage and Coffee industry should tap to generate more business by promoting occasions where drinking coffee becomes the trend. This is an opportunity for growth. The people when going to drink coffee, people concentrate more on taste, this shows that consumers are aware about the various flavours available in coffee and will demand more variety. Most of the people like to order food along with coffee, it provides opportunities for Coffee outlets to expand their business by not just selling coffee but by providing snack and finger meals which compliment coffee. With respect to non consumers of coffee, these people are also visiting coffee shops and cafes with their friends and colleagues but prefer to drink other beverages usually tea. These non consumers would like to drink coffee in future as the survey shows, hence by giving them free samples, there is scope of converting them from non consumers to consumers.
International Research Journal of Management Sociology & Humanity Page 827 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
CONCLUSION
The Indian consumer’s preference for beverage has seen changes as, more and more people now prefer coffee instead of tea. Drinking coffee has become the in thing among the youngsters that includes the students as well as the young workforce of our country. Also many professionals like to conduct their meetings at cafes, a common ground for both the parties. This is possible because more and more coffee outlets are being opened up such as CCD, Baristaa, Starbucks and their outlets are present not in markets but also in corporate offices, inside the food courts. Besides that there are lot of snacks shops which have coffee vending machine of Nescafe, CCD and etc. This is because of the change in attitude of consumers towards coffee which is a result of more awareness, information being made available by social media and due to peer preference. This has given an opportunity for coffee industry to increase the domestic consumption of coffee. The companies can widen their consumer base by having well structured and sustained promotional campaigns where these occasional drinkers can be converted into frequent drinkers by positioning drinking of coffee as an experience in the minds of the consumers and non- consumers.
REFERENCES
Lewis, K. J. (2012), 'Maslow's Hierarchy of needs. Research History', Retrieved from
January 7, 2014 http://www.researchhistory.org/2012/06/16/maslows-hierarchy-of-
needs/
Kulkarni, Mahesh (2013). ‘India may turn net importer of coffee as consumption rise’
Retrieved from January 5, 2014 http://www.business-
standard.com/article/markets/india-may-turn-net-importer-of-coffee-as-consumption-
rises-114012300850_1.html
http://www.slideshare.net/aadityanagpal/coffee-industry#btnNext
International Research Journal of Management Sociology & Humanity Page 828 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
http://www.euromonitor.com/coffee-in-india/report
http://www.slideshare.net/theysi/customer-
perceptionandattitudetowardsretailcoffeechainsastudyindelhiwrtbaristaccdnescafe1
http://www.trustea.org/pdf/Consumer%20Survey%20on%20Tea%20and%20Coffee.pdf
http://www.indiacoffee.org/(S(psqxtoxwsu20enjcotadcoog))/index.aspx
http://www.iicf.in/Coffee_2014/index.php#
APPENDIX
QUESTIONNAIRE
I, Deepika Jindal, Assistant Professor at Daulat Ram College is conducting a survey on Attitude of Consumer towards Coffee. Please spare 5 minutes to fill the below questionnaire.
1) NAME :-
2) AGE :-
3) OCCUPATION: - Student [ ] Service [ ] Business [ ] other [ ]
4) MARITAL STATUS: - Married [ ] Unmarried [ ]
5) EDUCATIONAL DETAILS
[ ] Undergraduate [ ] Graduate [ ] Post Graduate [ ] Ph D [ ] any other
6) DO YOU LIKE COFFEE?
Yes [ ] No [ ] can’t say [ ]
IF YES, Answer the Followings IF NO, Then Switch Over To 15th Question
International Research Journal of Management Sociology & Humanity Page 829 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
7) HOW OFTEN DO YOU DRINK COFFEE?
Almost Daily [ ] IF YES, then go to Question 9 Occasionally [ ] IF YES, then go to Question 8 Rarely [ ] IF YES, then go to Question 9
8) IF YOU DRINK COFFEE OCCASSIONALLY, ON WHAT OCCASSION YOU DRINK IT?
Party/ Get together [ ] Feeling Low [ ] Official Meetings [ ]
Date [ ] Others [ ]
9) DO YOU EAT / ORDER SOMETHING WITH COFFEE?
Yes [ ] No [ ]
If yes, please mention ______
10) WHICH TYPE OF COFFEE DO YOU PREFER MORE?
Hot [ ] Cold [ ] Depends on Season [ ]
11) WHERE DO YOU USUALLY TAKE COFFEE?
Cafe/ Coffee Outlets [ ] Home [ ] Other Places [ ]
12) WITH WHOME DO YOU PREFER TO DRINK COFFEE?
Friends [ ] Boyfriend/ Girlfriend [ ] Colleague/ Clients [ ]
Family [ ] Alone [ ] Others [ ]
13) WHAT IS THE AVERAGE AMOUNT YOU SPEND IF YOU VISIT TO COFFEE SHOP?
Less than 100 [ ] Rs 100 – 500 [ ] Rs 1000 & above [ ]
14) WHAT INFLUENCE YOU TO VISIT COFFEE SHOPS?
Value for Money [ ] Peer Groups/ Friends [ ] Taste [ ]
International Research Journal of Management Sociology & Humanity Page 830 www.irjmsh.com IRJMSH Volume 5 Issue 2 [Year 2014] online ISSN 2277 – 9809
Service Quality [ ] Ambience [ ] All [ ]
IF answering this question, then end here
15) IF YOU DON’T LIKE COFFEE OR CAN’T SAY, WHAT WILL YOU HAVE IN THE CAFE
TEA [ ] SMOOTHIES [ ] SOFT DRINK [ ] OTHERS [ ]
16) WOULD YOU LIKE TO HAVE A CUP OF COFFEE IN FUTURE?
Yes [ ] No [ ]
THANK YOU FOR SPARING YOUR VALUABLE TIME
International Research Journal of Management Sociology & Humanity Page 831 www.irjmsh.com
..
Shri Param Hans Education & Research Foundation Trust www.SPHERT.org
भारतीय भाषा, शिऺा, साहह配य एवं िोध ISSN 2321 – 9726 WWW.BHARTIYASHODH.COM
INTERNATIONAL RESEARCH JOURNAL OF MANAGEMENT SCIENCE & TECHNOLOGY ISSN – 2250 – 1959 (0) 2348 – 9367 (P) WWW.IRJMST.COM
INTERNATIONAL RESEARCH JOURNAL OF COMMERCE, ARTS AND SCIENCE ISSN 2319 – 9202 WWW.CASIRJ.COM
INTERNATIONAL RESEARCH JOURNAL OF MANAGEMENT SOCIOLOGY & HUMANITIES ISSN 2277 – 9809 (0) 2348 - 9359 (P) WWW.IRJMSH.COM
INTERNATIONAL RESEARCH JOURNAL OF SCIENCE ENGINEERING AND TECHNOLOGY ISSN 2454-3195 (online) WWW.RJSET.COM
INTEGRATED RESEARCH JOURNAL OF MANAGEMENT, SCIENCE AND INNOVATION ISSN 2582-5445 WWW.IRJMSI.COM