Contemporary patterns of consumer behaviour, Thesis of Marketing

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MKT 312 ESSENTIALS OF MARKETING RESEARCH

Winter Semester 2020-

Topic :Energy Drinks Consumption

Pattern and Contemporary Issues

( RESEARCH PROPOSAL )

 - Group - Hetansh Parikh - Sanya Agrawal - Richa Jindal - Sanjana Shah - Vyom Agrawal - Achal Patel 

• Radhika Rungta
• Tanishqa Agrawal

The purpose of this study is to understand what affects a typical consumer’s buying decision, and what are the marketing practices that leave an impact on the consumers to buy energy drinks over any other drinks. There are certain advertisements that are misleading. Misleading advertisements means the companies disclose false information regarding the qualities, nature or characteristics of the product. Certain unregulated energy drinks are quite popularized amongst the Indian youth. This study will also helps us throw light on the impact of the energy drinks it has on the young even with the health implication and the awareness amongst the consumers. The accessibility of caffeine contained beverages with aggressive marketing has led to the widespread use of the energy drinks. The existence of these energy drinks is led by the young adolescents who need caffeine to stay awake at night or to reduce tiredness. The unhealthy lifestyle has given birth to the energy drinks and their misleading marketing strategies. We would like to study the effect of advertisements it has on the consumers. This also leads us to study whether the consumers buy their beverage in the spur of the moment due to the several advertisements and the social media posts or they are well aware about the beverage they are buying. There has been a far -reaching change in the Indian market dealing energy drinks as there has been increasing consumer awareness. This will help us in knowing the psychology of the consumers. We would like to know the mindset of the consumers energy drinks, since the quintessential perception about energy drinks are that they are consumed occasionally but now it’s changing and they are also consumed daily. energy drinks are made available in retail outlets, general stores as well as in restaurants. we have also mentioned a question where the respondents are asked about a particular brand name that comes to their mind while talking about non- alcoholic beverage. This will show how consumers are particular about certain brands and the image associated to it. The most popular brands amongst the youth are Redbull, Monster, powerade, vitamin water etc. Through this paper, we would like to look into the promotional activities and the information given out to the consumers that influence them in choosing energy drinks over soft drinks. We would like to study the impact the respondents have over the popularity of these energy drinks. We intend to know the demographical factors that affect the consumers buying decision. We have briefly mentioned the names of the companies along with their promotional strategies. We have

tried to draw insights from various findings. This study will help in filling the gaps in customer expectations and help in getting the insight into the market of energy drinks.

youth/children as it leads to an addiction for caffeine. They believe that this marketing strategy can easily lure young and innocent minds into something that they can’t have control over in the future. Hence, there are many who would want to stay away from the Energy drinks for the severe harm they cause on their health. On the other hand it is a good alternative for the people who are constantly doing some tiresome work. Due to the argument from people about it being a tactic to increase the market share, a test was carried out, which state that the caffeine level for 100ml of energy drink is quiet same as coffee (i.e. between 14-31 mg), but relatively energy drinks are packed in sheer volume, which leads to higher caffeine. For the people who are constantly engaged in some or the other physical activities energy drinks help them rehydrate quickly and regain electrolytes (Electrolytes are the mineral like sodium, calcium, magnesium and Potassium which are lost through sweating after a physical activity), nevertheless drinking it regularly may lead to future heart problems and increased blood pressure. Though energy drink increases the endurance and may improve the alertness or the reaction time in a person, it also leads to insomnia and increased anxiety. It is also known that consuming energy drink helps to recover from mental and physical fatigue. It is also known for causing serious migraine. Though, one should be aware that long term consumption of such kind of drinks, as it can cause lifelong diseases like Diabetes. Some section of people chooses to believe that some the advantage of consuming energy drinks is often a marketing tactic to promote healthy consumption but most of it is a lie. The unending debate of on this issue will continue for years as both the sides seem to have some strong opinions which are factually very relevant. So the conclusion right now will be to drink these beverages per your knowledge and fully at your own risk.

Research Questions

• (^) What do consumers think about energy drinks being consumed on a regular basis?
• Where do people usually see energy drinks being advertised?
• How effective are the advertisements in persuading people to buy energy drinks?
• Do people know about any brand that has misleading energy drink advertisement campaigns?
• (^) How do people perceive brands that put out fake claims in their advertisement?
• Are people aware about the various actions that they can take against misleading advertisements?
• Do people know about the “actual” ingredients present in an energy drink?
• (^) How much time do people spend on buying an energy drink?
• (^) Do people end up buying energy drinks on their usual visit to the store?
• Do demographic factors play a role in people’s buying decision?

consuming but the gathered information can be controlled over the sampling and measurements. Quantitative strategies permit to test a theory by methodically gathering and dissecting information. It is used to analyse data collected in a statistically valid manner (e.g., from experiments, surveys, and observations). Our aim is to know where the energy drink stands in the market, are people aware, what is the perception regarding this specific term, to gather this source of information we have taken quantitative approach and would use primary method. Quantitative experimental study research will the most appropriate method as it produces generalise knowledge about the topic. According to our research objective, we focus on the false advertisements which energy drinks demonstrates. The survey could conclude the following answers through detailed questionnaire. The sampling unit would consist of consumption unit by man and women. The data would be collected through multiple close-ended questionnaire, answers to which would be collected using google forms. The sample size of the research would consist of 250-300 respondents, from diverse backgrounds, ethnicity, comprising the demographics like, age, gender, and occupation. It could also be collected through trending social-media platforms (e.g., Instagram, Facebook, twitter, etc) since, various social media influencers and actors/actress come up with raising issues with brands of energy drinks. They act for them through paid partnership and sponsorships. The questions asked are majorly based around the objectives of our research study which consist of gathering the extent of consumer awareness regarding the advertisements of energy drinks, preferences of consumers for specific brands, and to understand their typical buying decision. The questionnaire is divided into four different parts. We firstly began with questions related to awareness to meet our first research objective. However, this section of questionnaire will give a point of view and answers to the questions related to consumer’s awareness about various energy drinks brands, their association brands, and the reactions to it. The second part of our questionnaire includes preferences and perceptions related questions to meet our second objective. This will form how the consumers make sense of the cognitive stimuli, and what they perceive from individual preferences. The third part includes purchase intension questions, the buying decision of consumers with respect to abrasive advertisements. The fourth part will include questions based on the demographics.

QUANTITATIVE RESEARCH METHOD

1. Quantitative research revolves around collection of certain numerical data & analysing them through mathematical methods in order to explain a phenomenon. The data is collected through polls, questionnaires, surveys etc using computational techniques are then analysed using mathematical or statistical procedures. Advantages :
2. When the selection process is well mapped and designed & the sample represents the study population, the findings can be easily generalised.
3. it is relatively easy to analyse as compared to other methods.
4. data turns out to be very relevant, reliable & precise. Limits
5. Accessing the available data can be difficult especially when the related secondary data is not available too.
6. The context of a phenomenon might be difficult to interpret.
7. Complex issues cannot be explained if the data isn’t robust enough.

3. Are you aware about the various sugar levels and other ingredients present in the energy drinks?

• Yes
• (^) No
• Maybe

4. To what extent do you agree or disagree with the following statements? (Choose one that apply) !
5. Are you aware about any possible side-effects or reactions that you may have if you consume these drinks?

• Yes
• (^) No
• Have some knowledge for the same.

6. What is/are your reaction after you consume an energy drink?

• Refreshing
• Energized
• Anxious
• (^) Dizzy
• Heavy
• Nothing different.
• If other, then specify.

7. For what activities would you use energy drinks?

• Exercising
• Sports
• (^) Studying
• Quench thirst
• Leisure consumption
• Other

8. Would you prefer energy drinks over other drinks?

• Yes
• No
• (^) Maybe

• More than 6 times a month
• Never

12. How easily do you find your preferred drink at your store

• Always
• Most of the times
• Sometimes
• (^) Almost never
• Never

13. Where do you usually find the choice of your beverage?

• (^) Near the cash register.
• Amongst other various drinks.
• Standing out on its own.
• Having its own stand/ counter.
• (^) If other, specify.

14. How much time do you usually spend on purchasing the beverage?

• No time
• (^) 10-15 mins
• (^) 15-30 mins

• 30mins - 1 hour
• 1 hour and above

15. Do you tend to choose any other beverages along with your energy drink?

• Most of the times
• Frequently
• Sometimes
• (^) Never

16. To what extent do you agree or disagree with the following statements? (Choose one that apply) !