FACTORS INFLUENCING PURCHASE OF MILK THROUGH ORGANIZED AND UNORGANIZED CHANNELS

The objective of this paper is to bring out the factors that influence consumers in purchase of milk through organized and unorganized channels. A systematic review of literature was carried to identify the variables of milk purchase. The identified variables were converted to a scale and respondents were asked to rate their perception on a five point scale. The respondents for the study were selected through simple random technique from major Indian cities. A total of 300 responses were received and 33 responses were eliminated due to missing and ineligible entries; the final sample has 267 respondents. Exploratory factor analysis was performed to extract the factors. Seven were extracted for purchase of milk through organized and unorganized channels separately. Five factors are common for both organized and unorganized sector while two factors were specific for organized and unorganized sector respectively. The common factors for purchase of milk through organized and unorganized channels are extrinsic product attributes, ease of purchase, health benefits, intrinsic product attributes and value for money. In case of organized sector, two factors were specific namely marketing activities and brand attributes; while two factors namely buyer's confidence and sustainable milk production specifically influence purchase of milk from unorganized channels.