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Abstract
Recent information released through the mass media related to contamination of imported milk powder with hazardous components has made a considerable effect on the preference of milk powder brands among the consumers in Sri Lanka. This study was focused to investigate: (1) the factors influencing consumer brand preference for local and imported milk powder brands, (2) whether these identified factors have significant influences on consumer preference in milk powder brands. A questionnaire survey was conducted by means of face to face interview to gather primary data from a sample of 250 respondents covering five Divisional Secretariats in Kegalle District. Data were analyzed by using confirmatory factor analysis in AMOS in SPSS. The study shows that trust on the brand, product factors and brand loyalty are the main factors that significant and highly influence consumer brand preference for a particular milk powder brand. Findings of this study are important to milk brand producers, investors, policymakers, marketers, relevant enterprises and government to implement necessary product improvements and quality enhancement in the milk powder industry.
Highlights
Brand preference is a rational and irrational aspects of consumer behavior
Data were collected from 250 consumers selected from supermarkets and retail shops based on systematic sampling by interviewing each third consumer arrived to the super market or retail shop
The items that were used to measure the trust on the brand were quality of the brand, healthiness and nutritional value, not contained harmful chemicals, not contained animal fat and trust on the processing method
Summary
When consider the consumption of dairy products in Sri Lanka, powder milk, it has experienced a substantial growth over the last few decades. It is evident that milk powder has become an essential food item among consumers in Sri Lanka. After the conflicting social opinions of powder milk contaminated with components like melamine and dicyandiamide (DCD), consumers more concern in purchasing imported milk powder brands especially for their infants and children. Sri Lankan milk powder market is led by a few reputed imported brands and two main local brands. Local production of spray dried milk powder is insufficient to fulfill the requirement in the country. There is a high demand for imported milk powder in the local market. Other than the available local milk powder brands new brands are being introduced frequently. In Sri Lankan context there is a huge competition within the milk powder industry
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