Branded or unbranded? mom & pop stores or big-box retailers? urban consumer food preferences in northern India
Janailin Suchiang Papang1, Sumit Mahajan2, Smita Sirohi3
1Chaudhary Charan Singh Haryana Agricultural University, Department of Agricultural Economics
The huge size of the market in India is a lucrative proposition for food giants all over the globe. The empirical evidence in the Indian context based on the sample of urban consumers from economically prosperous cities of Chandigarh-Panchkula and Amritsar brings about some interesting insights into the consumer food preferences in Norhern India. Based on information collected for 14 major food products; Principal Component Analysis (PCA) was conducted to determine the factors affecting consumers’ preference for types of market; and multinomial logistic regression (MLR) was used for examining consumers’ preferences for branded vs. unbranded food products. The percentage of female as decision maker for buying food items for the households was higher in proportion as compared to males. The average MPCE on all food products except butter and processed cheese was higher in traditional retail. PCA results suggested that the ‘services’ (which included home delivery, ease of exchange, staff attentiveness, and convenient time) was the most important factor affecting the type of market preferred. PCA further revealed that the factors like better services, better quality, promotion, facilities are modern retail stores oriented whereas factors like better price, home delivery, and proximity are traditional retail market oriented. The results of MLR indicated that the probability of choosing branded rice, milk, and paneer was higher in double income households (DIH). Surprisingly, DIH and highly educated households preferred non-branded wheat flour. Households with female as decision maker preferred branded milk whereas households with higher family size were likely to purchase non-branded milk. The findings suggest that consumers are more likely to opt for markets that offer home delivery and digital payment for purchase of food items.
Keywords: Consumer preference, food products, India, PCA, urban
Contact Address: Sumit Mahajan, Lala Lajpat Rai University of Veterinary and Animal Sciences, College of Dairy Science & Technology, College of dairy science & technology luvas, 125004 Hisar, India, e-mail: sumit.mahajanluvas.edu.in