Consumer Behaviour with respect to Edible Oil Business

1. EDIBLE OIL
Diwesh Jaiswal
Pratik Seal
Aman Chaturvedi

2.  Consumer Behavior is the study of when , why , how or where people do or do not
buy a product. It basically depends on the psychology of the consumer . It
attempts to understand the buyer decision making process both individually and
in groups. It Studies the individual consumers such as demographics and
behavioural aspects to understand the people wants.
 The purpose of study of consumer behavior is to understand human (consumer)
actions reactions in the best possible manner.

3.  Edible Oil or Cooking Oil is an essential
component of Indian Kitchen and is
used in almost 90% of the dishes
prepared.
 The edible oil market in India is
projected to grow from around $21.5
billion in 2019 to $35.2 billion by 2025
due to increasing disposable income and
rising consumer awareness about
healthy lifestyle & wellness.
 Strong marketing activities by leading
edible oil brands, changing tastes and
preferences of consumers, expanding
population, and shifting consumption
pattern towards branded oils is leading
to rising consumption of edible oils in
the country.

4. Distributors / Oil Traders / Wholesale / Retail
Buyer or Seller
• The person who purchases Oil in bulk quantities for resale or for use in production or for use of
somebody else.
HORECA outlets / NGOs
Institutional Buyer
• These mainly include HOTELS , Restaurants , Canteens ( Govt/ Private) , NGOs , etc who purchase in
bulk quantities for commercial use or distribution. They mostly purchase bulk packs like Tins.
Consumer / Customer
End Consumer
• The person who purchases for his own consumption (home) and mostly buys consumer packs.

5. Psychological Cultural Social
Personal Economic Environmental

6.  There are four psychological factors that influence consumer behaviour: Motivation, perception, learning,
and Attitude or Belief system.
 Motivation - A motive is the inner drive or pressure to take action to satisfy a need. For any consumer purchasing decision to
happen, the need must be aroused to a high enough level that it serves as a motive. In a similar way the importance of Edible Oil
in Indian Kitchen drives that need in Consumer and is a must in his monthly buying list.
 Perception - Perception plays a major role in the processing of information and consumer decision making. It begins with
consumer exposure and attention to marketing stimuli and ends with interpretation.
For example – Fish tastes good when cooked in Mustard Oil is one such perception.
Olive Oil is good for health is also one such perception.
 Learning - Learning comes only through experience. An individual comes to know about a product and service only after he/she
uses the same. An individual who is satisfied with a particular Brand of Oil will show a strong inclination towards buying the same
Brand again , until there is some discomfort.
 Attitude or Belief - Beliefs and attitude play an essential role in influencing the buying decision of consumers. Individuals
create a certain image of every product or service available in the market.
For Example – Packaged Cooking oil is better than the loose is one such belief which has changed the industry, even if the loose
oil manufactured at the local scale is in pure form and the packaged one is unhygienic and is mixed with other ingredients to reduce
the price.

7.  Cultural factors comprise of set of values and ideologies of a particular community or
group of individuals. It is the culture of an individual which decides the way he/she
behaves.
 Cultural factors have a significant effect on an individual’s buying decision. Every
individual has different sets of habits, beliefs and principles which he/she develops from
his family status and background. What they see from their childhood becomes their
culture.
For example – Mustard Oil is mostly used in the eastern part of India , Refined Soya Oil is used mostly in
the North & West ,where as Sunflower & Coconut Oil is used in Southern part of India.
Similarly a brand called “Mashal Mustard Oil” is used mostly in Muslim dominated areas of Rural Kolkata.
As we can see based on the Culture, geographical location , religion , the preference of Oil changes.

8.  Social factors play an essential role in influencing the buying decisions of consumers.
Human beings are social animals. We need people around to talk to and discuss various
issues to reach to better solutions and ideas. We all live in a society and it is really
important for individuals to adhere to the laws and regulations of society.
 Social Factors influencing consumer buying decision can be classified as under:
Reference Groups – It consists of individuals , one interacts with on a regular basis like Friends , Family ,
Relatives , Co –workers, etc. They influence the buying decisions of consumers as in if they have used a particular
brand or have complete knowledge or know the features of brand they are recommending.
Family - Consumers family size and also his role in the family also impacts the behavior. For example – A
bachelor in general buys the smallest SKU like 200ml /500ml , A joint family will buy multiple packs of 1 ltr or a 5
ltr jar.
Role & Status - An individual from an upper middle class would spend on luxurious items whereas an
individual from middle to lower income group would buy items required for survival . Each individual plays a dual
role in the society depending on the group he belongs to. An individual working as Chief Executive Officer with a
reputed firm is also someone’s husband and father at home. The buying tendency of individuals depends on the
role he plays in the society.
Male members generally go by the list where as a home maker wife looks for trying new Oil.
An upper middle class can afford to store 4 types of Oil in his kitchen , where as a middle or lower income class
will buy the most common used .

9.  Personal Factors play an important role in affecting consumer buying behaviour. It depends on
the below factors :-
Age – A bachelor normally thinks of short term and buys a smaller pack without thinking of the price , where as a
family man will care about the price and will buy a brand which will benefit him in saving.
Occupation – An individual’s nature of job has a direct influence on the products and brands he picks for
himself/herself.
Economic Condition – The buying tendency of an individual is directly proportional to his income/earnings per
month.
Lifestyle - An individual’s lifestyle is something to do with his style, attitude, perception, his social relations and
immediate surroundings. For example , Pet jars are more sold in Rural area compared to pouches , since markets are
far and pouches leak while being carried.
Personality - An individual’s personality also affects his buying behaviour. For example a fitness freak will choose
healthier Oils like Olive Oil.

10.  There are various economic factors which influence the Consumer behavior :-
Personal Income
Family Income
Income Expectations
Savings
Liquidity Position
Consumer Credit
For example , if an individual wants to save money he/she will manage with less usage of OIL and similarly if
he/she has the capability to spend ,will store for a full month use.
Many consumers switch Oil brands or Oil Categories ( Mustard/ Rice Bran / Soya ) to save money.

11.  There are various environmental factors which influence the Consumer behavior :-
Political Situation
Legal Forces
Technological Advancement
Ethical Considerations
For example , with context to the current scenario many companies have evolved and come with new OIL varieties ,
which will provide immunity like Emami Smart Balance, Fortune Expert.
There are also times when certain legal complications or situations influence Consumer Behaviour. Recently a famous
sports person was hospitalized of heart failure who was endorsing Fortune Rice Bran Oil and it did impact their sales
for a month.
One more example is the price factor which varies a lot in cooking oil since it’s a highly fluctuating commodity. This
does impact a consumer’s pocket and then they try to switch for better options.

12. MODERN DAY
CONSUMER
The Modern day Consumer is very Smart and
technically more advanced. They do lot of
research on Brands and look for the most
preferred Oil Brand which will match their
requirements and fit their pocket.
There are varieties of Oils offered from
variety of companies and it is their marketing
skills , which does impact consumer behavior.
The oil Industry is one of the biggest
commodity business , and has evolved in the
last 10 years . The biggest evolution being the
shift from loose oil to packaged oil , in
different SKU’s starting from 25ml to 15 ltrs.
The competition in the market is very tough
and each brand has to do the bit to survive.