The Average Expenditure of Households on Convenience Foods - The AVEX Research Project @Pearson Institute of Higher Education

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Information about The Average Expenditure of Households on Convenience Foods - The AVEX...

Published on December 5, 2016

Author: ClacksonTafadzwaChis



2. Practical Survey Video

3. Introduction a)Basic overview of topic b)Problem statement c)Research Hypothesis d)Research objectives e)Literature review


5. Outlining Main Areas 3. Results and important findings 4. Conclusion 5. Recommendations and Limitations

6. Basic Overview Of Topic • Consumerism is rapid, and Globalisation. • We we’re interested – knowing  The Financial burden or expense consumers carry  Where they spend  Why they spend • Why this research? To gain competitive intelligence • Track key consumption trends, • Inform your marketing, brand, strategy and market development, sales and supply functions.

7. Problem statement • Establish the average consumption expenditure • What influences this behaviour amongst South African households.

8. Research Questions •Why do consumers prefer convenience food? •How much does (R) the consumer spend on convenience food per month? •How many times in the week (f[x]) do consumers purchase convenience food? •Which convenience food outlets are most popular?

9. Research Objectives •To determine the motivation of convenience food purchases. •To estimate the average consumer expenditure on convenience food. •To determine the frequency of purchases of convenience food per week. •To determine which convenience food outlets are most popular.

10. Literature review • Convenience foods are commercially prepared food designed for ease of consumption. (Collins, 2012) • Reasons That Affect the Consumer Buying Decision Process:(Grimsley, 2016)  Personal : 50.1% - treat to themselves. (Hitti, 2008).  Psychological : 41.8% family and friends like them. .(Hitti, 2008).  Social : 33.1% - way to socialize.(Hitti, 2008). • The convenience food industry in South Africa generated over R302 billion for economy last year. Largest contributors were: • 1. Kentucky Fried Chicken (KFC) 771stores • 2. Steers, 509 stores. 3. Nando’s, 1000 stores. (market share) • This is indicative of South Africa’s growing foodservice industry, as disposable income levels to rise throughout the population

11. • consumption, is measured monthly according to the Income and Expenditure Survey (IES) • Consumer spending represents 63% - 70% of the Country’s Gross Domestic Product (GDP) (Fariba Ronnasi 2014:1) • AVG HH food expenditure is lowest in Free State and highest in Gauteng. • On average, 17% of total household expenditure is spent on food.  Rural households - R588 p/m food, 23% of household expenditure.  Urban households - R945 p/m food,15% of their household expenditure. (Samuel Bonti-Ankomah 2001: 6) (IES) Literature review


13. Research design Research design – includes - how data is to be collected - what instruments will be employed - how instruments will be used - the intended means for analysing data collection • Qualitative – as the approach of the research study

14. Research design • Three types of survey research - Exploratory - Descriptive - Explanatory • Population – 112 households in Gauteng

15. Data Collection Online structured Questionnaires and Surveys

16. Data Analysis • Microsoft Excel Spread sheet • Data was measured with graphs and charts

17. Ethical Consideration • The ethical treatment of participants encompassed:  Respect for Persons  Informed Consent  Privacy, Confidentiality, and remained Anonymous

18. Results & Findings AVERAGE EXPENDITURE PER MONTH The study shows that 18.52% of the Households which is the most spend between R801-R1000 on a monthly basis on convenience foods and 5.56% which is the least spend R1500 -R2000. 9% 17% 17% 11% 11% 18% 11% 6% Population % R0-R200 R201-R350 R351-R450 R451-R600 R601-R800 R801-R1000 R1001- R1499 R1500 -R2000

19. Frequency of purchases per week. The study shows that 51.85% of the Households which is the most, purchase convenience foods once (1) per week and 1.85% which is the least, purchase 5 times a week. Results & Findings 1 2 3 4 5 6 Population 1 2 3 4 5 6

20. • To determine the motivation of convenient food purchases The study shows that 46.43% of the people purchase convenient foods due to lack of time on preparing and that 1.79% of the people can’t cook. Results & Findings 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% Cant cook Too Lazy to cook Not enough time Other Specific Responses to Motivation Reasons other reasons (25.00%) o individuals prefer professionally prepared food, o or just as a treat or just to try something different.

21. •Most popular outlets About 19.64% of the population shows that they mostly buy from KFC and 1.79% was the least from Fishaways. Results & Findings 10.71% 14.81% 19.64% 3.57% 10.71% 1.79% 12.50% 23.21% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Nando's MacDonalds KFC Chicken Licken Debonaires Fishaways Steers Others OUTLETS MOSTLY BOUGHT FROM Outlet Other Specific (23.21%)  Romans pizza  Pizza Hut  Burger King

22. Conclusion on findings Connection between results. We deduced from the research that: • The average expenditure per household ranges between R801 and R1000 • 51.1% of the respondents purchase fast foods once a week. • People buy fast foods because of lack of time. • Most people buy from KFC.

23. Recommendations  We would recommend prices of convenience food should reflect the target market better to increase market share.  Convenience food outlet must offer more varieties of food menus, as this is a popular motivation to consume convenience foods.  To situate more outlets close to institutions where people spend most of their time.

24.  Not all participants very truthful in their responses. Not all respondents were the purchaser of the convenience food Limitations

25. Conclusion: Report Insight  The most popular outlets are the most bought from , which means the most of the population spends there. Popularity will then translate to Market share.  The outlets are mostly visited by consumers who buy once a week or four times a month,  By consumers who spend an average of R150 once-off and an average of R950 per-month (51.85% would do that because the mean average is very significantly close to the monthly provincial/national average)  And most of the consumers would be more relatable to the reason or factor of not having enough time to prepare food.

26. THANK YOU! We invite any questions?

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