Chapter Three Research Methodology

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03.1 Introduction
Under this chapter the researcher discuss formulation of hypotheses, methodological choice, methods of data collection, sampling plan, data processing and data presentation and analytical methods. This research is mainly done to understand the nature of consumer behavior towards fresh milk. According to the research there are five variables. They are price of fresh milk, income of the people, availability of fresh milk, price of substitute products, and advertising and promotional effect. The methodology execute to measure relationship between those five variables with the dependant variable.

3.2 Formulations of Hypotheses

According to the conceptual framework developed to study the consumer behavior towards fresh milk in the urban and suburbs in Colombo, there are five variables taken to consideration. To test those factors effectiveness one hypothesis for each variable is developed. They are, 3.2.1 To test if the price of fresh milk affect to the dependant variable

H0: Price of fresh milk change the demand for fresh milk in urban and suburbs in Colombo H1: Price of fresh milk does not change the demand for fresh milk in urban and suburbs in Colombo

3.2.2 To test if the income how far the income of target audience affect to the dependant variable

Ho: Income of the people in urban and suburbs in Colombo change the demand for fresh milk in urban and suburbs in Colombo H1: Income of the people in urban and suburbs in Colombo does not change the demand for fresh milk in urban and suburbs in Colombo

3.2.3 To test if the availability of fresh milk affect dependant variable

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H0: Availability of fresh milk change the demand for fresh milk in urban and suburbs in Colombo H1: Availability of fresh milk does not change the demand for fresh milk in urban and suburbs in Colombo

3.2.4 To test if the substitute goods affect the dependant variable

H0: Price of substitute products change the demand for fresh milk in urban and suburbs in Colombo H1: Price of substitute products does not change the demand for fresh milk in urban and suburbs in Colombo

3.2.5 To test if the advertising and promotion affect the dependant variable

H0: Advertising and promotion change the demand for fresh milk in urban and suburbs in Colombo H1: Advertising and promotion does not change the demand for fresh milk in urban and suburbs in Colombo

3.3 Methodological choice

In this study mainly the researcher focused on identifying the consumer behavior towards fresh milk in urban and suburbs in Colombo. According to the researcher there are five variable are concerned. They are price of fresh milk, income of the target audience, availability of fresh milk, price of substitute goods, and advertising and promotional activities.

In this study the researcher collect data from primary and secondary data collection methods. But of them mainly the researcher concentrates on primary data collection method. The primary data is collected by a questionnaire given to the sample

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respondents. Secondary data is collected by means of central bank report, different publications on the research topic, world wide web etc.

3.4 Method of data collection

In this study the researcher collect data by means of primary & secondary data collection methods. The data that are important to come into a conclusion will be basically gathered from primary data source. It is by questionnaire. Secondary data will be gathered from previous researches, central bank, and department of census and statistical department reports, theories will be collected from marketing and consumer behavior subject related books. Moreover from magazines, news paper articles, from world wide web more information related to literature review will be collected, further to understand about the history of milk production and consumption many history books related to agriculture and livestock production will be collected.

3.5 The sampling plan

Colombo is the capital of the country. It consists of approximately 3 million. Population which is the most popularized city in Sri Lanka. So the people in Colombo can categorized in many way. They are according to class, income, professions, and according to geographical area. In this study the sample is randomly selected 100 households who represent all types of profession and social classes and geographical areas.

3.6 Data processing and Scales

Under this section it focuses on how the data I processed and how they are scaled. The information gathered from the respondent in order to find consumer behavior nature towards fresh milk in urban and suburbs in Colombo will be analyzed according to this format. The researcher has given similar type of questions to the respondents in order to gather data. Those two formats are To know how often concern a certain factor, Often Normally

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Rarely Vary rarely To know how much consider the given factor Very high High Average Low Very low Those are the two formats used in order to collect data. There is no scaling done to analyze the data gathered from the questionnaire due to sample size is exactly 100 and Expect there will be no huge variance in the analysis thereby.

3.7 Data Presentation and Analysis

The presentation of data is done by means of table and graphics. The data will graphically illustrate with pie chart, bar chart, and other possible graphs in a manner that anyone can possibly understand. All the data will be presented descriptively. Data is analyzed using statistical and Excel formulas, apart from that all other possible analytical methods such as SPSS software will also be used to analyze the data collected from respondents.

3.8 Conceptual Framework

3.8. Indicators of considering concept When the concept is developed it includes variable. Those variables have indicators. Those indicators finally have built by considering the concept. Those indicators are 3.8.1 Quality The quality is an important factor considered by a consumer by the time consumer purchase. The quality is represented by the price. So the price indicates quality. The

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quality of milk is represented by the price of fresh milk. Most of milk products added with chemicals and produces by a process of production. So the natural quality of fresh milk is not available in any of other processed milk product. The fresh milk already includes natural freshness, quality and harmless to body as well its nutrient power remains unchanged. So as the quality of fresh milk vary the price of fresh milk can also be changed and the consumer behavior towards fresh milk. So the quality represented by price and it could consider as an indicator of the concept.

3.8.2 Standard Standard of fresh milk is important. There is a standard when milking and transport of fresh milk and also in distribution of there are standard as fresh milk could easily be spoiled. As well there are instruments to be used in measure of the quality of fresh milk therefore fresh milk is a high quality product in the market for consumption. 3.8.3 Reputation The fresh milk is a good nutrient product. It is known by people as a high quality drink. So it has a good reputation. This reputation is included in price as an indicator. 3.8.4 Profession of people Profession of the public in target group is important as it is the major income source of target audience. So the profession can affect to the income of house hold or individual. 3.8.5 Social class The social class is also affect to the income. Social class is an indicator of income. If the income is high social class is also high. When the income is low there social class is low. So there is a clear relationship between the indicator and the variable income. 3.8.6 Quality of substitute products Quality of substitute products is an indicator of price of substitute goods. Quality of substitute goods affect to the consumer behavior towards substitute goods. There are many substitute products in the competitive market. Of them some substitute products

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have high price which accept as high quality product and they have their niche markets. So the price of substitute product is an important indicator. 3.8.7 Brand image There are many substitute products in the market. Certain product has been in the market for decades. So such brands have an image as a reliable product. That reliability affect to the consumer behavior of fresh milk. That creates a loyalty towards those products. So when the loyalty is high due to reliability the price changes doesnt matter that much. So the loyalty/image affects towards price of substitute products. 3.8.8 Transportation & Distribution Transportation & Distribution are seen to be key elements in the availability of fresh milk in urban and suburbs in Colombo. As most of the farming lands located in remote areas. So if there is not a good transportation and as well as a good distribution channel the people in Colombo would not get a chance to drink fresh milk. Therefore the researcher identifies transportation and distribution as an indicator of availability. 3.8.9 Private and Government sponsorship Private and government sponsorship can be taken as an indicator of availability as the sponsorship of both government and private sector have significantly affected to the supply of fresh milk in urban and suburbs. So the researcher identifies the private and the government sponsorship in both production and supply in terms of fresh milk as an indicator of availability of fresh milk 3.8.10 Product loyalty Product loyalty can be identified as an important indicator in terms of advertisements and promotion. Customers are very loyal to products when they are open to advertisements and promotions.

3.9 Conceptual framework

Based on the research topic conceptual model was developed in order to identify the consumer behavior towards fresh milk in urban and suburbs. The consumer behavior can be changed due to many factors such selected factors have been taken as variables

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in the conceptual frame work. Those variables are mentioned in the conceptual framework below.

Figure 3.1
Price of fresh milk Availabilit y Milk powder price Income of people

Consumer behavior towards fresh milk

Others

Advertising Promotions

Constructed by the researcher

3.10 Operationalization of considering Concepts

The oprationalization of considering concept can be clarified as follows. According to the research and the conceptual framework developed there are four independent variables. And apart from that there is another optional variable affecting to the dependant variable. 3.10.1 Price of fresh milk Price is a variable according to the researchers conceptual frame work. The price indicates following indicators. It can be shown in a table as follows.

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Table 3.1 Variable Indicators Quality of fresh milk Price Standard of fresh milk Reputation of fresh milk Constructed by the researcher 3.10.2 Income of the people Income of the people is a variable according to the research conceptual frame work. The income of the people is indicated by following indicators. Table 3.2 Variable Income people of Indicators the Profession of the target audience Social class of target audience

Constructed by the researcher 3.10.3 Price of substitute products The price of substitute is another variable according to the researchers conceptual frame work. The indictors of the price of substitute products can mention as below. Table 3.3 Variable Indicators

Price of substitute Quality of substitute products products Brand image/loyalty of substitute products

Constructed by the researcher 3.10.4 Availability of fresh milk

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Availability of fresh milk is another variable according to the researchers conceptual frame work. Under that researcher identify two indicators that indicate availability of fresh milk.

Table 3.4 Variable Availability fresh milk Indicators of Transportation & Distribution in terms to fresh milk product Private & government involvement

Constructed by the researcher 3.10.5 Advertising & Promotion Advertising and promotion is a variable according to the conceptual frame work developed by the researcher. As indicator of advertising and promotion the researcher identify below mentioned indicator. Table 3.5 Variable Advertising promotion Constructed by the researcher Indicators and Brand/product loyalty towards fresh milk

3.11 Definition of Variables

3.11.1 Dependant variable As shown in the conceptual frame work the dependant variable is to consumer behavior towards fresh milk in urban and suburbs. Consumers decisions to purchase

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fresh milk vary according to various factors. So when those factors vary, decisions also can change. So those who take decision on fresh milk can use this as a when their decision making. 3.11.2 Independent variables There are few independent variables according to the conceptual framework developed by the researcher. The independent variable can affect to the dependant variable. Based on the consumer behavior could be changed. The independent variables identified by the researcher of the research study are, 3.11.2.1 Price of fresh milk Price of fresh milk is a major factor concern in the decision of consumers. As there are many substituting products available in the market. Of them when decision taken consumers does evaluation of the product in terms of cost that they have to incur. As well when price is consumers have to spend high amount of disposable income. Then the consumers decisions may change. This study is done in the Colombo area. In Colombo there is a huge variance in the in terms of house hold income among the population could be seen. 3.11.2.2 Income of the Target audience Income of target audience affect to the purchasing decisions of consumers. When income is high the purchasing power increases. Then the consumers demand more products and as well they can demand high priced products. And due to income factor sometimes consumers dont try to purchase high quality product when there are many substitute products exists. 3.11.2.3 Availability of fresh milk The researcher identifies availability of fresh milk as another variable because the research is conducted in Colombo. Around Colombo or within Colombo there are no more cattle farms. In Colombo we hardly can find cattle farm. Therefore milk has to be transported from other areas. For that transportation and distribution has become a major barrier. Fresh milk is not processed milk. By the name it is fresh. So the fresh milk easily gets spoiled after some times. Due to these reason the fresh milk

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availability is controversial in Colombo area. Therefore though people are willing to buy fresh milk it is questionable about the availability of fresh milk in the market. 3.11.2.4 Price of substitute products Price of substitute products is an important factor in the consumers decision according to the researcher. The price of milk powder/others can affect to the fresh milk demand. When the substitutes products price is low it affects adversely to fresh milk demand. It depends on the propensity of demand towards fresh milk.

3.11.2.5 Advertising and promotion Advertising and promotional programs change the customer mind. If advertisements and promotions persist the product memorability and loyalty increase. Then the customer will change mindset to purchase other substitute products. For fresh milk there is no huge advertising and promotional campaigns, but for substitute products huge advertising programs are done. Above variables have been developed according to the conceptual framework.

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