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CONSUMER BEHAVIOR IN PURCHASING OF DAIRY PRODUCTS IN BANGLADESH

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Journal of Jessore University of Science and Technology ISSN: 2521-5493
Vol. 03 No. 01, June 2018

CONSUMER BEHAVIOR IN PURCHASING OF DAIRY PRODUCTS IN BANGLADESH

Rezaul Karim,Tarun Sen1*, Md. Mahedi Hasan1

Department of Business Administration, Atish Dipankar University of Science & Technology, Dhaka,
1*
Department of Accounting and Information Systems; 2Department of Accounting and Information Systems,
Jessore University of Science and Technology, Jessore 7408, Bangladesh.

ABSTRACT
The dairy market is very competitive in Bangladesh for both the local and foreign companies. This study was
aimed at gaining insight into the factors influencing consumer buying behavior with respect to dairy products.
Primary data were collected through questionnaire survey. Chi-square, t-test and ANOVA tests were used for data
analysis. The study has divulged that product benefit, price, personality, lifestyle, income level, profession, and
product availability are the dominating factors for consumer purchase of dairy products. It is also revealed that
almost all the respondents do not like “Low fat/Fat free milk”.
Keywords: Consumer behavior, socioeconomic variable, consumption pattern, dairy products, prices.

INTRODUCTION process that must be investigated. The purchase

decision process is the combination of some stages
Bangladesh is a country of agrarian economy since
a buyer passes through in making choices about
the agricultural sector contributes the dominating
which products and services to buy. Marketing
share (16%) to the gross domestic product
represents “an organizational function and set of
(GDP)1,and livestock is an essential component of
processes for creating, communicating and
the rural economy and the livelihood of the
delivering value to customer and for managing
subsistence farmers.2 So, nowadays, dairy product
customer relationships in ways that benefit the
and dairy market is a dominating sector in
organization and its stakeholders” 4. Simply it can
Bangladesh economy. Because, according to a
be said, marketing is performing all commercial
report 90.9 lakh tonnes of milk production would
affairs in the terms of the final results, i.e. in the
be required in the year 2025 in Bangladesh with a
view of consumer 5. Resulting from these
modest population growth rate and per capita milk
definitions it is obvious that customer or generally
consumption of 120 ml. Total yearly requirement
consumers play a critical role in marketing
will be 1.90 lakh tonnes if per capita daily milk
management and therefore the main aim of
consumption rises to 250 ml as suggested by the
marketing within an organization is to create a
World Health Organization.3 The dairy product
value for consumers, embodied in produced goods
market is expanding day by day because like many
and services, through which a consumer will meet
other countries dairy product is one of the most
his needs and reach desired satisfaction6. Consumer
important and common items in our daily life and
is a cornerstone to the success of any organization
so the demand for dairy products is very high. This
because it is a consumer who ultimately makes a
high demand leads to the final purchase decision of
purchase decision which ultimately influences the
dairy products and the realization of the customer
existence and prosperity of an organization in the
purchase decision process is the prerequisite of
future. If an organization wants to do marketing
gaining market share for the success of any
successfully and effectively, i.e. to “produce”
organization. But it is a very tough job to
satisfied and loyal consumers, it has to know its
understand the customer because behind the
consumers and understand their consumer behavior
visibleact of making a purchase lies a decision
thoroughly.
*Corresponding author:
Email: tarun24you@gmail.com

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Consumer behavior forms one of important parts of cycle, occupation, economic situation, lifestyle,
human behavior7. Every single living person plays personality and self-concept) and psychological
a role of a consumer who has to purchase various factors (i.e. motivation, perception, learning,
goods and services, on a daily basis, for the attitudes and beliefs). Based on this theoretical
purpose of satisfying existing and emerging needs. background in this study an effort has been made to
Exactly, reaching satisfaction through the gain an insight into the factors influencing
consumption of purchased products is the main consumer buying behavior with respect to dairy
driving motive why consumers come to the products.
marketplace. However, it is important to note here,
that consumer behavior does not only relate to the The core objective of the study is to evaluate
very act of purchasing product. According to the consumer behavior when they purchase dairy
definition of Hoyer et al. 8, “consumer behavior products. The core objective has been specified
reflects the totality of consumer’s decisions with into the following objectives: a) to know about the
respects to the acquisition, consumption, and motive of the actual shopper of the family who
disposition of goods, services, activities, plays key role in purchasing; b) to find out the
experiences, people and ideas by human decision- factors that influence the consumer behavior that
making units”. From this definition, it is therefore leads to purchase dairy products.
obvious that consumer behavior relates to three key
processes or acts, i.e. an acquisition (the process of DATA AND METHODS
obtaining products), consumption (the process of
using products) and disposition (the process of Sources of Data: Both the primary and secondary
discharging products). sources were used for data collection. The exact
buyer and consumers of dairy products were
When a consumer considers and decides about selected for primary data and books, journals, daily
what he is going to acquire in order to satisfy papers and website were used as the sources of
incurred need, his purchase considerations and secondary data.
subsequent consumer behavior and actions applied
in purchasing process are influenced and affected Sampling: Dhaka city was purposively selected for
by a great variety of factors. In marketing, there are data collection. 100 respondents who were of
many different ways how to categorize individual above 18 years in age were randomly selected as
factors having some impact on consumer behavior. the sample. These 100 respondents were selected
For an instance Lake9 introduced the classification from Dhanmondi, Mirpur, Mohammadpur,
of factors influencing consumer behavior according Shantinogor, Kalabagan, Uttara and Azimpur.
to the source of their origin into internal Data Collection: Questionnaire survey technique
(psychological) factors originating from inside of a was used to collect primary data and secondary
consumer such as attitudes, beliefs, motivation or data was collected through content and document
emotions; and external (socio-cultural) factors analysis.
resulting from external environment surrounding a Data Analysis: Computer software such as Ms
consumer such as culture, social groups or Word, Ms Excel and SPSS have been used for data
household structure. Sandhusen10 classified factors analysis. The researcher has set some independent
or stimuli that influence consumer behavior into variables- Decision taker, actual purchaser, tests,
interpersonal, i.e. those operating between income level, profession, Nutrition & Health, Price,
consumers, such as cultural and social groups; and Convenience, Prefer Homemade,
intrapersonal, i.e. those operating within Packaging/appearance, Freshness /Naturalness and
consumers, such as drives, perceptions and so on. Data was analyzed and explained based on
attitudes. Kotler and Armstrong11 specified those variables.
classification consisted of four factors
influencingconsumer behavior, namely cultural
factors (i.e. culture, sub-culture and social class),
social factors (i.e. member groups, reference
groups, family, role and status), personal factors
(i.e. age, family life
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RESULTS AND DISCUSSION Convenience and Packaging) do not have that

much impact on choosing the products by the
In this study it was first tried to see who acts as the
respondents.
pivotal figure in making the final purchase. And the
result is depicted in table 1. The respondents were Price is the main determinant of choosing or
grouped into business and non-business classes. purchasing of milk by the consumers; Consumers
are highly conscious of this factor. Nutrition &
It was seen that within both the business and non-
Health is another important factor that influences
business classes the female member of the family
purchasing of dairy product used by consumers.
purchases the most. The cause behind this practice
People are also a little bit conscious of home
may be that the wife is more conscious of the
product to purchase. Consumers do not care about
family health than the husband. It is also seen that
taste, convenience, freshness etc. that much when
among the wives who earn more, purchase the
they purchase dairy products. Packaging/
more (table 2).
appearance is the most insignificant element/factor
The cause may be because of their consciousness of choosing the product.
of their family health and they most of the cases
have to play the vital role in maintaining their Low fat/fat free milk is not a preferable dairy
families and husbands are busy with their own product and no one consumes this. Whole milk/full
works. cream milk, Packaged plain cured and Butter are
Almost all the respondents (91%) do not like “Low mostly consumed by all the family members for
fat/Fat free milk”. They never purchase those making different types of food items. Basically,
items. On the other hand, “Whole milk/Full cream parents like to use milk powder as baby food for
milk” is preferred and bought their children. Processed cheese, mozzarella,
daily/weekly/fortnightly/monthly by second highest cheddar etc. are moderately preferred by the
number of respondents. “Milk powder” is the respondents and used in almost every family.
mostly preferred products. People sometimes like
to purchase “Packaged plain cured/yogurt/fruit Convenience, additives free, tasty, cheap, fiber,
yogurt/yogurt drink” and sometimes not. nutritious, value added, nice smells, easily cooked,
“Processed cheese, mozzarella, cheddar” and pleasant texture and environmentally friendly
“Butter” are the two items people do not like to packaged are the main appealing components for
purchase and use. The cause behind this result may selecting the dairy products by the respondents
be that most of the Bangladeshis are accustomed to (Table 10). Most of the respondents want to ensure
drink full cream milk rather than other milk and get these items before, prior and after the
product like processed cheese, mozzarella, cheddar purchasing from the dairy product. There are some
and butter other direct and indirect factors which also help the
people to select and use a product.
Nutrition & Health, Price, Home-made product and
Freshness are the four main factors dominating the We get the same result in “Selection criteria Vs.
purchase of dairy products (Table 4). Taste, Income” table that we have seen in “Selection
Convenience and Appearance are the other three criteria Vs. Profession” table. Convenient, tasty,
factors which create less appeal to people for nutritious, value added etc. act as the main
purchasing dairy products. selecting components of dairy products. Some
other elements also come from the people of
Most of the respondents give priority to nutrition different income group’s mind of choosing a
and home-made product of choosing dairy product product.
whose incomes are increasing (from 1.5 lakhs to 6
lakhs & above), but it is opposite to the price Cheap, containing natural ingredients, familiar and
factor. Freshness does not change as income nutritious are the most preferable and common
change and remain constant. Overall, these four items consumer consider for making the dairy
factors are the main determinants for choosing the product choice. Having additives free, cheer able,
dairy products. The other three factors (Taste, nice smells, weight controllable and environmental
friendly packed also draw attention to the product.

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Table 1: Actual Purchaser of the Family Members

Profession
Non Business Business
Respondents
Count % Count %
Husband 11 17.2% 11 30.6%
Wife 25 39.1% 12 33.3%
Both husband and wife 15 23.4% 11 30.6%
Husband, wife and children 8 12.5% 1 2.8%
Others 5 7.8% 1 2.8%

Table 2: Purchase According to Income Level

Income
1.5 to 2.99 lakhs 3.0 to 4.49 lakhs 4.5 to 5.99 lakhs 6 lakhs and above
Respondents
Count % Count % Count % count %
Husband 12 25.0 6 25.0 3 18.8 1 8.3
Wife 15 31.3 8 33.3 7 43.8 7 58.3
Both husband and wife 13 27.1 6 25.0 4 25.0 3 25.0
Husband, wife and
5 10.4 3 12.5 1 6.3
children
Others 3 6.3 1 4.2 1 6.3 1 8.3
Total 100.
48 100.0 24 16 100.0 12 100.0
0

Table 3: Frequency of Purchase

Variables Type of Purchase No. of Respondents Percentage (%)
seldom/never 91 91.00
daily 2 2.00
Low Fat or Fat free milk weekly 4 4.00
fortnightly 2 2.00
monthly 1 1.00
seldom/never 38 38.00
daily 12 12.00
Whole milk/Full Cream Milk weekly 20 20.00
fortnightly 18 18.00
monthly 12 12.00
seldom/never 5 5.00
daily 46 46.00
Milk Powder weekly 31 31.00
fortnightly 10 10.00
monthly 8 8.00
seldom/never 49 49.00
Packaged plain Cured/yogurt/fruit weekly 7 7.00
yogurt/yogurt drink fortnightly 16 16.00
monthly 28 28.00
seldom/never 78 78.00
daily 1 1.00
Processed cheese, mozzarella, cheddar etc. weekly 2 2.00
fortnightly 6 6.00
monthly 13 13.00
seldom/never 71 71.00
daily 1 1.00
Butter weekly 1 1.00
fortnightly 5 5.00
monthly 22 22.00

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Table 4: Factors Influencing the Purchase of Dairy Products

Variables Mean Total
Non Business Respondents Business Respondents
Taste 3.03 2.64 2.89
Nutrition & Health 3.91 3.97 3.93
Price 3.92 3.56 3.79
Convenience 2.47 2.50 2.48
Prefer Home made 3.86 3.83 3.85
Freshness/Naturalness 3.81 3.86 3.83
Packaging/Appearance 2.89 2.64 2.80

Table 5: t-test
Group Statistics
Variables Profession No. of Respondents Mean Std. Deviation Std. Error Mean
Non Business 64 3.03 1.054 0.132
Taste business 36 2.64 1.073 0.179
Non Business 64 3.91 1.094 0.137
Nutrition & Health
business 36 3.97 0.971 0.162
Non Business 64 3.92 1.074 0.134
Price business 36 3.56 1.206 0.201
Non Business 64 2.47 1.038 0.130
Convenience business 36 2.50 1.159 0.193
Non Business 64 3.86 1.082 0.135
Prefer Home made business 36 3.83 1.183 0.197
Non Business 64 3.81 0.974 0.122
Freshness/Naturalness business 36 3.86 0.683 0.114
Non Business 64 2.89 0.945 0.118
Packaging/appearance
business 36 2.64 1.099 0.183

Table 6: t-test for Equality of Means

Levene's Test
for Equality of
Variances t-test for Equality of Means

Std. 95% Confidence

Sig. Mean Error Interval of the
(2- Differenc Differen Difference
F Sig. t df tailed) e ce Lower Upper
Taste Equal variances
0.475 0.492 1.776 98 0.079 0.392 0.221 -0.046 0.831
assumed
Equal variances
1.766 71.559 0.082 0.392 0.222 -0.050 0.835
not assumed
Nutrition & Equal variances
Health 1.863 0.175 -0.301 98 0.764 -0.066 0.219 -0.501 0.369
assumed
Equal variances
-0.311 80.171 0.756 -0.066 0.212 -0.488 0.356
not assumed
Price Equal variances
2.714 0.103 1.566 98 0.120 0.366 0.234 -0.098 0.830
assumed
Equal variances
1.516 65.892 0.134 0.366 0.242 -0.116 0.849
not assumed
Convenience Equal variances
0.329 0.568 -0.139 98 0.890 -0.031 0.226 -0.479 0.416
assumed
Equal variances -0.134 66.251 0.894 -0.031 0.233 -0.496 0.433

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not assumed
Prefer Home Equal variances
made 0.707 0.403 0.112 98 0.911 0.026 0.233 -0.437 0.489
assumed
Equal variances
0.109 67.379 0.914 0.026 0.239 -0.451 0.503
not assumed
Freshness/ Equal variances
Naturalness 3.316 0.072 -0.265 98 0.792 -0.049 0.184 -0.413 0.316
assumed
Equal variances
-0.292 93.176 0.771 -0.049 0.167 -0.379 0.282
not assumed
Packaging/ Equal variances
appearance assumed 2.815 0.097 1.205 98 0.231 0.252 0.209 -0.163 0.666
Equal variances
1.155 63.983 0.252 0.252 0.218 -0.184 0.687
not assumed

Table 7: Factors Responsible for Purchase of Dairy Products and Income

Income
Mean Total
1.5 to 2.99 lakhs 3.0 to 4.49 lakhs 4.5 to 5.99 lakhs 6.0 lakhs & above
Taste 2.8 2.9 3.1 3.2 2.9
Nutrition & Health 3.8 3.8 4.4 4.2 3.9
Price 4.1 4.0 2.9 3.4 3.8
Convenience 2.4 2.4 2.8 2.5 2.5
Prefer Home made 3.9 3.6 3.8 4.3 3.9
Freshness/Naturalness 3.9 3.7 3.8 3.9 3.8
Packaging/Appearance 2.8 3.0 2.6 2.7 2.8

Table 8: ANOVA Test

Variables Sum of Squares df. Mean Square F Sig.
Between Groups 2.082 3 0.694 0.596 0.619
Taste Within Groups 111.708 96 1.164
Total 113.790 99
Between Groups 6.468 3 2.156 2.028 0.115
Nutrition & Health Within Groups 102.042 96 1.063
Total 108.510 99
Between Groups 20.486 3 6.829 6.178 0.001
Price Within Groups 106.104 96 1.105
Total 126.590 99
Between Groups 1.523 3 0.508 0.429 0.732
Convenience Within Groups 113.438 96 1.182
Total 114.960 99
Between Groups 4.208 3 1.403 1.136 0.339
Prefer Home made Within Groups 118.542 96 1.235
Total 122.750 99
Between Groups 0.756 3 0.252 0.321 0.810
Freshness/Naturalness Within Groups 75.354 96 0.785
Total 76.110 99
Between Groups 1.771 3 0.590 0.577 0.632
Packaging/appearance Within Groups 98.229 96 1.023
Total 100.000 99

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Table 9: Distribution of Respondents Based on Choice

Variables Variables No. of Respondents %
None 84 84.00
Everyone in family 9 9.00
Low Fat or Fat free milk Children (3-12 yrs.) 2 2.00
Adults (>19 yrs.) 5 5.00
None 19 19.00
Everyone in family 52 52.00
Whole milk/Full Cream Milk Children (3-12 yrs.) 12 12.00
Teenagers (13-19 yrs.) 6 6.00
Adults (>19 yrs.) 11 11.00
None 2 2.00
Everyone in family 43 43.00
Milk powder Children (3-12 yrs.) 40 40.00
Teenagers (13-19 yrs.) 11 11.00
Adults (>19 yrs.) 4 4.00
None 9 9.00
Everyone in family 79 79.00
Packaged plain Cured/yogurt/fruit yogurt/yogurt drink
Teenagers (13-19 yrs.) 4 4.00
Adults (>19 yrs.) 8 8.00
None 46 46.00
Everyone in family 39 39.00
Processed cheese, Mozzarella, cheddar etc. Children (3-12 yrs.) 1 1.00
Teenagers (13-19 yrs.) 4 4.00
Adults (>19 yrs.) 10 10.00
None 27 27.00
Everyone in family 54 54.00
Butter Children (3-12 yrs.) 1 1.00
Teenagers (13-19 yrs.) 5 5.00
Adults (>19 yrs.) 13 13.00

Table 10: Selection Criteria Vs Professions

Variables Non Business Respondents (Mean) Business Respondents (Mean) Total
Is easy to prepare Convenience 3.6 3.5 3.6
Contains no additives 3.9 3.8 3.9
Is low in calories 2.6 2.4 2.6
Tastes good 4.5 4.3 4.4
Contains natural ingredients 4.3 4.4 4.3
Is not expensive 3.5 3.0 3.4
Is low in Fat 3.2 3.2 3.2
Is familiar 2.9 3.1 3.0
Is high in fiber and roughage 3.5 3.3 3.4
Is Nutritious 4.1 4.1 4.1
Is available in markets 3.2 3.2 3.2
Is good value for money 4.2 4.3 4.2
Cheers me up 3.0 3.1 3.1
Smells Nice 4.1 3.9 4.0
Can be cooked very simply 3.7 3.7 3.7
Helps me cope with stress 2.9 3.3 3.0
Helps me control my weight 3.5 3.3 3.4
Has a pleasant texture 3.7 3.8 3.8
Is packaged scientifically 4.1 3.9 4.1
From politically approved countries 2.4 2.6 2.5

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Table 11: Selection Criteria Vs Income

Mean Income
Variables 1.5 to 2.99 lakhs 3.0 to 4.49 lakhs 4.5 to 5.99 lakhs 6.0 lakhs & above Total
Is easy to prepare Convenience 3.5 3.8 3.4 3.7 3.6
Contains no additives 3.8 4.3 3.6 3.8 3.9
Is low in calories 2.4 2.5 2.6 2.9 2.6
Tastes good 4.4 4.6 4.4 4.3 4.4
contains natural ingredients 4.2 4.7 4.3 4.1 4.3
Is not expensive 3.7 3.5 2.9 2.2 3.4
Is low in Fat 3.0 3.5 3.4 3.1 3.2
Is familiar 3.2 3.1 2.3 2.9 3.0
Is high in fiber and roughage 3.3 3.7 3.4 3.4 3.4
Is Nutritious 4.0 4.5 4.0 4.2 4.1
Is easily available in markets 3.2 3.2 3.1 3.4 3.2
Is good value for money 4.3 4.1 4.2 4.1 4.2
Cheers me up 3.0 3.3 3.3 2.7 3.1
Smells Nice 4.0 4.2 4.1 3.8 4.0
Can be cooked very simply 3.5 3.9 3.6 3.8 3.7
Helps me cope with stress 3.0 3.2 3.1 2.6 3.0
Helps me control my weight 3.2 3.6 3.8 3.6 3.4
Has a pleasant texture 3.7 4.0 3.6 3.8 3.8
Is packaged scientifically 4.0 4.3 4.0 3.8 4.1
From politically approved countries 2.4 2.5 2.7 2.5 2.5

Table 12: One-way ANOVA

Sum of Squares Df Mean Square F Sig.
Is easy to prepare Convenience Between Groups 2.973 3 0.991 0.611 0.609
Within Groups 155.667 96 1.622
Total 158.640 99
Contains no additives Between Groups 6.081 3 2.027 1.937 0.129
Within Groups 100.479 96 1.047
Total 106.560 99
Is low in calories Between Groups 2.313 3 0.771 0.709 0.549
Within Groups 104.438 96 1.088
Total 106.750 99
Taste Between Groups 1.048 3 0.349 0.606 0.613
Within Groups 55.313 96 0.576
Total 56.360 99
Contains natural ingredients Between Groups 4.438 3 1.479 2.345 0.078
Within Groups 60.563 96 0.631
Total 65.000 99
Is not expensive Between Groups 27.458 3 9.153 6.495 0.000
Within Groups 135.292 96 1.409
Total 162.750 99

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Table 12: One-way ANOVA (cont.)

Is low in Fat Between Groups 3.861 3 1.287 0.945 0.422

Within Groups 130.729 96 1.362
Total 134.590 99
Is familiar Between Groups 9.940 3 3.313 3.575 0.017
Within Groups 88.060 95 0.927
Total 98.000 98
Is high in fiber and roughage Between Groups 2.010 3 0.670 0.841 0.475
Within Groups 76.500 96 0.797
Total 78.510 99
Is Nutritious Between Groups 4.373 3 1.458 2.608 0.056
Within Groups 53.667 96 0.559
Total 58.040 99
Is easily available in shops and Between Groups 0.875 3 0.292 0.337 0.799
supermarkets Within Groups 83.125 96 0.866
Total 84.000 99
Is good value for money Between Groups 0.542 3 0.181 0.489 0.691
Within Groups 35.458 96 0.369
Total 36.000 99
Cheers me up Between Groups 4.057 3 1.352 1.387 0.251
Within Groups 93.583 96 0.975
Total 97.640 99
Smells Nice Between Groups 1.740 3 0.580 1.230 0.303
Within Groups 45.250 96 0.471
Total 46.990 99
Can be cooked very simply Between Groups 2.419 3 0.806 0.545 0.653
Within Groups 142.021 96 1.479
Total 144.440 99
Helps me cope with stress Between Groups 2.856 3 0.952 0.941 0.424
Within Groups 97.104 96 1.012
Total 99.960 99
Helps me control my weight Between Groups 6.348 3 2.116 1.948 0.127
Within Groups 104.292 96 1.086
Total 110.640 99
Has a pleasant texture Between Groups 1.928 3 0.643 0.959 0.415
Within Groups 64.313 96 0.670
Total 66.240 99
Is packaged in an Between Groups 2.640 3 0.880 1.877 0.139
environmentally friendly way Within Groups 45.000 96 0.469
Total 47.640 99
Comes from countries I Between Groups 1.314 3 0.438 0.335 0.800
approve of politically Within Groups 125.646 96 1.309
Total 126.960 99

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CONCLUSION
This study has divulged how consumers behave items people do not like to purchase and use.
when they make purchase decision for dairy Nutrition & Health, Price, Home-made product and
products. It was seen that among the business and Freshness are the four main factors dominating the
non-business respondents the female member of purchase decision of dairy products.
the family purchases the most. It is also seen that
In case of marketing dairy products in Bangladesh
among the wives who earn more, purchase the
the marketer has to keep all the demographic and
more. Almost all the respondents (91%) do not like
psychographic characteristics of the target market
“Low fat/Fat free milk”. They never purchase those
in his/her mind for developing a competitive
items. On the other hand, “Whole milk/Full cream
marketing strategy. The very factors revealed in
milk” is preferred and bought
this study have to be considered for developing the
daily/weekly/fortnightly/monthly by second highest
mission statement of a company dealing with dairy
number of respondents. “Milk powder” is the
products.
mostly preferred products. People sometimes like
to purchase “Packaged plain cured/yogurt/fruit
yogurt/yogurt drink”. “Processed cheese,
mozzarella, cheddar” and “Butter” are the two

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