NEED ASSESSMENT AND TARGET MARKET IDENTIFICATION FOR

IMPROVED CHULHAS

BY

Abhimanyu Dhankar (P35109)

Kanak (P35139)
Parul Yadav (P35063)
Rajat (P35171)

Development Internship Segment

PRM 35

Submitted to

Greenway Grameen Infra Pvt. Ltd.

Faculty Guide: Dr. Vivek Pandey

August, 2015
 ACKNOWLEDGEMENT

It is really a matter of great pleasure to acknowledge the opportunity, invaluable guidance,

enormous assistance and excellent co-operation extended to us from our organization
Greenway Grameen Infra Pvt. Ltd.

We wish to express a deep sense of gratitude to our Reporting Officer, Mr. A.D Mathur,
Executive Director, Greenway Grameen, for taking keen interest in our internship as well as
for providing valuable insights throughout the course of internship. We would also like to
thank Mr. Shoeb Kazi, Vice President, Technology and Mr. Madhur Jhawar, Design
Engineer, Greenway Grameen for addressing all our queries throughout the internship
segment. .Words seem inadequate in offering our thanks to We would also like to thank the
officials working at the Panchayats and Village Dairy Co-operative Societies of the sample
villages in order to extend support to us while doing fieldwork. Without their support and
resources, the data collection would not have been possible.

We extend our heartfelt thanks to Prof. Vivek Pandey, our faculty guide for the study, who
guided and supported us at every step towards the final completion of this report. His
valuable insights also helped us doing appropriate data collection and analysis.

We are indebted to all the staff members of Greenway Grameen, especially our field-work co-
ordinators Mr.Narendra, Ms.Sonal, Mr.Vijay, Mr.Suresh, Mr.Rajesh and Mr.Dharmesh for
their unconditional co-operation and support throughout our study. All of them helped us
immensely with both their time and energy. We shall forever remain grateful to them.

Abhimanyu Dhankar 35109

Kanak 35139
Parul Yadav 35063
Rajat Anand 35171

i
 EXECUTIVE SUMMARY
 Title Need assessment and target market identification for Improved cook-
stoves
 Organisation Greenway Grameen Infra Pvt. Ltd.
 Reporting Officer Mr. A.D Mathur
 Faculty Guide Dr. Vivek Pandey
 Participants’ Abhimanyu Dhankar (P35109), Kanak (P35139), Parul Yadav (P35063)
name and Rajat Anand (P35171)

Background: In India, majority of the rural population still lacks access to cleaner form of energy.
Inefficient burning of biomass fuels on traditional cook-stoves or chulhas has significant adverse
impact on health and livelihood of rural dwellers, particularly women and children. Greenway
Grameen has introduced improved cook-stoves in Indian market with benefits like considerable
smoke reduction, improved fuel efficiency. However, these improved cook-stoves have not gained
much acceptance among the rural population. Key issues include lack of awareness regarding
negative impacts of using traditional stoves, high price point of improved stoves, lack of purchasing
power, dearth of sustainable financing sources, and absence of an effective distribution network in
rural market.
Objectives of the study: The primary objective of the project was to conduct need assessment for the
improved cook-stoves and establish target market for the same. The secondary objective was to raise
awareness among the rural population about the adverse impact of traditional chulhas on health
outcomes and environment, and abreast them with the improved cook-stove as a better and effective
alternative.
Scope of the study: The scope of the study is limited to villages where traditional stoves are widely
used for cooking and allied purposes. The geographical scope is limited to six villages studied in
Vadodara and Anand districts of Gujarat.
Research methodology: The research design for the study was exploratory. The primary data was
collected through Focus Group Discussions (FGDs) and structured questionnaire based surveys. The
secondary data was collected from India's population Census, 2011; Panchayat reports; and product
related data available from the organization. The survey aimed at establishing level of penetration of
traditional cook-stoves and determining wood usage pattern of rural households. Also, to identify
trends in socio-demographic factors associated with likelihood of purchase of improved cooks-stoves
among rural population using Logit Model for identifying the target segment.
Observations and findings: The study established that majority of the rural population is still
dependent on traditional stoves for cooking and allied practices. From FGDs and informal discussions
it was found that households utilize traditional stoves for heating water and preparing rotlas or bread,
and for other purposes LPG stove is used. Almost 98% of the study population, particularly women
collected firewood for cooking. Less wood consumption, low smoke and portability were given high
scores over light-weight and rust free features of the improved stoves. Only few respondents had prior
knowledge of improved cook-stoves. Also, majority of the study population stated the present price of
the improved cook-stove (1500 INR) is very high for their purchasing capacity. High Level of
education, absence of BPL status and age showed positive correlation with likelihood of purchasing
the improved cookstove.
Recommendations: The study ascertained that the high price point of the improved cook-stoves is a
serious impediment to establish a market, due to low purchasing power of rural communities.
However, the company has been able to operate and gain a firm foothold by employing three-way
partnership between the organisation, Microfinance Institutes, and Self Help Groups in the states of
Kerala and Karnataka. It is recommended to work along the same lines to capture a huge market in the
state of Gujarat as well. Based on the findings of a pilot study conducted, the firm can also venture
into the middle class income segment in semi-urban/urban areas to capture the first mover advantage.
The firm can also tie up with Corporate Social Responsibly (CSR) wings of donor organisations to
create a fixed institutional source of revenue. Greenway Grameen must undertake initiatives to
inform, educate, and empower rural dwellers about the health issues caused by Household Air
Pollution (HAP) and how the improved cookstove act as a better alternative, particularly for women
as they are the end users of the product.

ii
TABLE OF CONTENTS
1. INTRODUCTION ......................................................................................................... 1
1.1 Background............................................................................................................. 1
1.2 Organisation Introduction: Greenway Grameen....................................................... 3
1.2.1 Timeline .......................................................................................................... 3
1.2.2 Greenway Grameen Stoves .............................................................................. 6
1.3 Objectives of the Study ........................................................................................... 7
1.4 Scope of the study ................................................................................................... 7
1.5 Limitations of study ................................................................................................ 7
2. METHODOLOGY ........................................................................................................ 8
2.1 Sources of Data Collection ...................................................................................... 8
2.1.1 Primary Sources ............................................................................................... 8
2.1.2 Secondary Sources ........................................................................................... 8
2.2 Tools for Data Collections ...................................................................................... 8
2.3 Data collection Method ......................................................................................... 11
2.4 Data Analysis Tools .............................................................................................. 12
2.5 Methodology......................................................................................................... 12
3. DATA ANALYSIS AND FINDINGS.......................................................................... 14
3.1 Descriptive Analysis ............................................................................................. 14
3.2 Need Assessment .................................................................................................. 18
3.3 Logit Model .......................................................................................................... 19
3.3.1 Data Analysis using Logit Model ................................................................... 20
3.3.2 Independent variables .................................................................................... 21
3.3.3 Result ............................................................................................................ 23
3.3.4 Marginal Effect for Continuous variables ....................................................... 25
3.3.5 Marginal Effect for Categorical Variable ....................................................... 26
3.3.6 Conclusion ..................................................................................................... 28
3.4 Segmentation & Target Market Identification ....................................................... 28
3.4.1 Target Segment Identification Process ........................................................... 30
3.4.2 Result ............................................................................................................ 30
3.4.3 Target Segment Identification and Profiling ................................................... 32
3.4.4 Conclusion ..................................................................................................... 33
4. CONCLUSION ............................................................................................................ 34

iii
5. RECOMMENDATIONS ............................................................................................. 35
5.1 Micro-Finance Institutions (MFIs) ........................................................................ 35
5.2 Inclusion of Greenway stoves in CSR of organizations ......................................... 36
5.3 Awareness ............................................................................................................ 37
5.4 Market Potential in urban areas ............................................................................. 38
6. REFERENCES ............................................................................................................ 39

iv
List of Tables

Table 1: Survey variables ...................................................................................................... 9

Table 2: Survey details ........................................................................................................ 11
Table 3: Descriptive analysis for continuous variables......................................................... 14
Table 4: Descriptive analysis for occupation type ................................................................ 14
Table 5: Descriptive analysis for BPL status........................................................................ 15
Table 6: Descriptive analysis for household type ................................................................. 15
Table 7: Descriptive analysis for cook-stove type ................................................................ 15
Table 8: Descriptive analysis for wood source ..................................................................... 16
Table 9: Descriptive analysis for wood usage & collection time .......................................... 16
Table 10: Descriptive analysis for health problems due to traditional cook-stoves ............... 16
Table 11: Descriptive analysis for scores on attributes of the improved stove ...................... 16
Table 12: Descriptive analysis for perceived price ............................................................... 17
Table 13: Descriptive analysis for perceived price between INR 1000-1500 ........................ 17
Table 14: Wood usage & collection time ............................................................................. 18
Table 15: Independent variables type .................................................................................. 21
Table 16: Categorical variable coding ................................................................................. 22
Table 17: Regression table for continuous variables ............................................................ 23
Table 18: Regression table for categorical variables ........................................................... 24
Table 19: Average marginal effects for continuous variables ............................................... 25
Table 20: Average marginal effects for categorical variables ............................................... 26
Table 21: Correlation table for the basis variables ............................................................... 30
Table 22: VRC and Omega value calculation ...................................................................... 31
Table 23: Final cluster centres for K=4 ................................................................................ 32
Table 24: Analysis of clusters.............................................................................................. 32
Table 25: Target segment characteristics ............................................................................. 33

v
List of Figures

Figure 1: Co-creation process ................................................................................................ 4

Figure 2: First prototype ........................................................................................................ 5
Figure 3: Final stove design .................................................................................................. 5
Figure 4: Improved cook-stove evolution .............................................................................. 6
Figure 5: Jumbo stove ........................................................................................................... 6
Figure 6: Smart stove ............................................................................................................ 6
Figure 7: Study Methodology .............................................................................................. 12
Figure 8: Cook-stove types .................................................................................................. 18
Figure 9: Reported health problems due to traditional cook-stoves ...................................... 19
Figure 10: Descriptor Variables........................................................................................... 29
Figure 11: Target Segment Identification Process ................................................................ 30
Figure 12: Cross-selling process .......................................................................................... 35

List of Annexure
Annexure 1: Focus Group Discussions (FGDs) .................................................................. viii
Annexure 2: Improved Cook-stove Questionnaire-Rural ..................................................... xii
Annexure 3: Improved Cook-stove Questionnaire-Urban ................................................... xiv
Annexure 4: Logit Model Output (STATA) ....................................................................... xvi
Annexure 5: Segmentation & Target Market Identification:-K-Means Clustering Output .... xx
Annexure 6: Segmentation & Target Market Identification: Profiling Output ................... xxiii

vi
List of Abbreviations
ALRI ..................................................................................Acute Lower Respiratory Infections
AME ....................................................................................................Average Marginal Effect
ANOVA.....................................................................................................Analysis Of Variance
BoP..........................................................................................................Bottom-of-the-pyramid
BPL .............................................................................................................Below Poverty Line
COPD ..........................................................................Chronic obstructive pulmonary diseases
CSR...............................................................................................Corporate Social Responsibly
ESAF.......................................................................................Evangelical Social Action Forum
FGDs....................................................................................................Focus Group Discussions
HAP ......................................................................................................Household Air Pollution
HH ..............................................................................................................................Household
IC .............................................................................................................Improved Cook-stove
LOPM................................................................................................Level of Particulate Matter
LOV..............................................................................................................Least Omega Value
LPG .....................................................................................................Liquefied Petroleum Gas
MFIs...................................................................................................Micro-Finance Institutions
NGOs........................................................................................Non-Government Organizations
SHGs................................................................................................................Self Help Groups
SKDRDP.............................................Shri Kshetra Dharmasthala Rural Development Project
SPSS ........................................................................Statistical Package for the Social Sciences
USEPA.............................................................................US Environmental Protection Agency
VRC......................................................................................................Variance Criterion Ratio
WHO ...............................................................................................World Health Organization

vii
1. INTRODUCTION
1.1Background
India has become one of the largest economies in the world, but this path to growth has not
been equitable. Majority of the population still lacks access to cleaner form of energy. In
India, almost two third of the entire population resides in rural areas. Most of the rural
households are dependent on biomass fuels as a primary source of energy for cooking
purposes. Although, in recent times, there has been a shift in the energy use pattern in the
villages but still the dung cakes, crop residue and wood remain the main sources of energy.
In India, 166 million households depend on solid biomass fuel as their main energy source for
cooking. More than 90% of these households living in villages use traditional cook-stoves for
preparing their daily meals, whereas a meagre 10 percent use the cleaner form of energy such
as LPG (Census of India, 2011).

Traditional cook-stoves or chulhas are widely used for cooking in the rural areas, but
inefficient burning of biomass fuels on these stoves has significant adverse impact on health
and livelihood of rural dwellers, particularly women and children. World Health Organization
(WHO) has declared Household Air Pollution (HAP), produced from burning biomass fuel,
as one of the top ten global health risks. Burning of biomass fuels causes almost 500,000
deaths every year in India alone. The majority of these deaths occur in rural India where
clean cooking options are available to less than 12% of households (WHO, 2009).

These conventional Chulhas, due to incomplete combustion, release detrimental black smoke
which contains high amounts of carbon monoxide and other harmful gases which in turn have
adverse effects on the health. Another major constituent of the smoke is carbon di-oxide
which is the prime greenhouse gas. Moreover, these Chulhas being thermally inefficient emit
high amounts of smoke per unit useful energy. Therefore, these chulhas not only produce
harmful HAP and contribute to global warming, but also deplete India’s natural resources
through the excessive consumption of biomass.

In India smoke from traditional stoves while cooking is one of the major causes of illness of
rural women. According to WHO about 36% of the patients of Acute Lower Respiratory
Infections (ALRI) are due to HAP which occurs due to burning of biomass fuels. In Indian
villages, for the household cooking with biomass fuels, the Level of Particulate Matter
(LOPM), one of the health damaging pollutants is 2 to 20 times higher than what the US
Environmental Protection Agency (USEPA) considers a safe level.

1
Inhalation of smoke emitted by traditional cook-stoves causes acute lower respiratory
infections (ALRI), chronic obstructive pulmonary diseases (COPD), lung cancer, cataracts
and other illnesses. Other outcomes for which evidence is moderate or tentative include otitis,
asthma, low birth weight, tuberculosis, cataract, parental prenatal mortality, nasopharyngeal
cancer and laryngeal cancer (Taishi, 2004). The traditional role of Indian women as home
maker exposes them to HAP, due to this women are more vulnerable to such maladies.
Furthermore, in addition to these health impacts, there are indirect negative effects associated
with the use of biomass fuels. Fuel collection has significant consequences on health,
particularly for women and children. In India, families spend 5 to 10 hours or more per week,
collecting fuel. Collection often entails carrying loads weighing 20-30 kgs of traditional bio-
fuels, especially firewood, on head and shoulders. Due to which they suffer from various
problems like head and spinal injury, pregnancy complications and maternal mortality.
Chopping wood can lead to allergies, chapped hands and limb deformation in certain cases.
Women frequently leave the safety of their communities to search for firewood and other
traditional biomass fuels (Kaleidoscope of cooking in rural India, 2014, GIZ).

Exposure to HAP leads to poor health outcomes which results in high health expenses and
lower produce and thus, lower income. Poverty exacerbates the dependence on more
polluting energy sources and means less resource for pollution abatement and health care.
Interventions to eradicate IAP require orchestrated action that range from change in national
energy policy and infrastructure of energy supplies, to the changes at grassroots level such as
promoting improved cook-stoves, trained health workers or changes in housing structure
(better ventilated houses) and cooking behaviours.

Various improved cook-stoves have been introduced in Indian market with benefits like
considerable smoke reduction and improved fuel efficiency. These stoves have the proven
capacity to reduce fuel consumption and smoke emissions by optimizing the combustion
process while avoiding unnecessary heat loss.

However, these improved cook-stoves have not gained much acceptance among the targeted
users. Key issues include lack of awareness regarding negative impacts of using traditional
stove, high price point of improved stoves, lack of purchasing power, dearth of sustainable
financing sources and absence of an effective distribution network in rural market. In addition
to that, rural consumers face issues in perceiving the benefits of improved stoves. As wood is

2
available to them freely and in abundance, wood consumption is not an issue of concern to
them.

1.2Organisation Introduction: Greenway Grameen

Greenway Grameen Infra Pvt. Ltd. is a for-profit product design, manufacturing &
distribution company founded in early 2011. It is aimed to provide a choice in home energy
appliances for rural consumers. It was co-founded by Neha Juneja and Ankit Mathur. The
initiative has been awarded with many renowned prizes such as Ashden prize, 2014, winner
of Intel global challenge, 2012.

Greenway Grameen Infra has a total of 41 employees in its head office located in Navi
Mumbai, Maharashtra. The company has its own manufacturing unit located in Vadodara
with 7 employees and 50 workers. The venture sells nearly 2.6 lacs stoves annually and has
plant capacity of manufacturing five lacs stoves annually.

After visiting villages in Andhra Pradesh, Maharashtra, Rajasthan, Punjab, and Madhya
Pradesh, Greenway team observed that the traditional cook-stove is still used widely in rural
areas. The cost and issue of availably of kerosene fuel has rendered the use of kerosene
stoves increasingly unsustainable. In the case of LPG stoves, soaring prices, lack of
purchasing power of the rural dwellers has resulted in low use. The ones, who use LPG, do
not use them to accomplish all the cooking chores on it. They still used traditional chulha for
cooking and allied activities.

Ankit and Neha found the seeds of their first product for rural customers – a cooking stove
that would be significantly cleaner and significantly more efficient, a stove that would reduce
harmful emissions and increase the productivity of rural women.

1.2.1 Timeline
Greenway used the model of Co-creation. The Greenway Grameen team took very early
product prototypes to their beta villages and invited women to use them. The key
advantage of the co-creation process (over a traditional market trial) is that the prototypes
are far from being “fully baked” and the product designers are not “married” to their
designs. The initial users of the prototypes (village women in this case) became co-
designers and provided valuable suggestions on design and usability. In Greenway
Grameen’s case, not only did the village women provide some excellent suggestions

3
(many of which made it to the final design), but also gave feedback on pricing. The result
is that the Greenway Smart Stove (product’s brand name) is seeing fast sales.

The steps involved in the Co-creation process are:

1. The prototype is introduced to a specific user group.

2. Thorough in-house and user testing done at several rural locations for different type of
fuel sources.
3. User review is incorporated to improve the design several times.
4. Product released in a few districts to gauge wider user group response.
5. Product design and looks are further enhanced based on user and distributor reviews.

Co-creation process with a SHG in rural Karnataka in action is shown below:

Figure 1: Co-creation process

4
In 2010, after researching on improved chulha the first prototype was made is shown in the
figure below:

Figure 2: First prototype

This prototype was introduced to different villages to get their feedback from the women of
the household by letting them work on it. This provided genuine feedback to the greenway
team and helped them in improving the design of the base prototype.

In February 2011, they launched the second design and in April a third one by doing some
minor changes on the second one. After some field visits they finalized the designs and began
pilot sales for the same. Later that year in December they designed the current greenway
smart stove and production also began the same month.

Figure 3: Final stove design

5
After learning about the consumers changing preferences, Greenway introduced the jumbo
stove in 2014.
The evolution of the cook-stove is illustrated below:

Figure 4: Improved cook-stove evolution

1.2.2 Greenway Grameen Stoves

Greenway produces two types of stoves:

1. Greenway Smart Stove

2. Greenway Jumbo Stove

Figure 6: Smart stove Figure 5: Jumbo stove

Size (L x B x H) - 9.8" x Size (L x B x H) - 12.4" x

7.6" x 11.6" 10.6" x 11.6"
Loading Capacity - 25 Kgs Loading Capacity - 40 Kgs
Price: INR 1500 Price: INR 1500

These stoves are made of steel and aluminum with Bakelite Handles. There are no moving
parts in the improved cook-stove. The stoves have an intuitive front-feeding hearth with
special fuel tray. These stoves work on all solid biomass fuels (wood, dry-dung, agro-residue
etc). The Ministry of New and Renewable Energy has certified these improved cook-stoves.

The Greenway Smart Stoves are single-burner high efficiency cooking stoves which save up
to 70% in fuel cost (compared to the mud stove), minimize harmful emissions, and reduce
6
cooking time. These stoves are lightweight, therefore portable in nature. As these stoves are
made of steel and aluminum, the stove body has anti rust property.

1.3Objectives of the Study

Primary Objectives

The primary objective of the project is to conduct need assessment for the improved cook-
stoves and identify target market for the same.

Secondary objectives

 To ascertain penetration rate of traditional cook-stoves in rural areas.

 To ascertain the probability of purchase likelihood of the improved cook-stoves
associated with various socio-demographic factors.
 To increase the penetration of improved cook-stove in the rural households.
 To raise awareness among the rural population about the adverse impact of traditional
cook-stoves on health outcomes and environment, and abreast them with the
improved cook-stove as a better and effective alternative.

1.4 Scope of the study

1. Scope of the study is limited to those villages where majority of the households are
still dependent on traditional chulha.
2. Geographical scope of the study is limited to three villages of Vadodara (Vimali,
Vasna and Virodh), and three villages of Anand district (Agas, Shekhadi and
Rajnagar).

1.5 Limitations of study

1. Data Collection Method: Census data collection method was employed in order to
fulfil the organizational requirement. Due to time consuming nature of this technique,
survey questionnaire was kept brief to cover six villages. Therefore, a detailed study
could not be pursued.

2. Time Constraint: Owing to the exhaustive nature of data collection method and
limited time availability, the study was constrained to six villages.

7
2. METHODOLOGY
The cross-sectional research design has been adopted for the purpose of the study to provide
data for an exploratory research enquiry. The exploratory research enquiry attempts to
capture the socio-demographic factors affecting likelihood of purchase of the improved cook-
stove. The study has used both qualitative and quantitative methods for collecting data from
primary as well as secondary sources.

2.1Sources of Data Collection

2.1.1 Primary Sources
 Qualitative data obtained from respondents based on Focused Group Discussions (FGDs).

 Quantitative data obtained from respondents based on a structured questionnaire.

 Qualitative data obtained from informal interactions with village Sarpanchs , co-
Operative Society officials as well as household members.

2.1.2 Secondary Sources

 Product manufacturing, pricing, marketing, and sales & distribution related information
from records available in the organization.

 Population details of study villages obtained from India's population Census, 2011 and,
Panchayat and Aanganwadi records for triangulation purpose.

 Articles, journals and other literature available online were used to obtain insights for the
study.

2.2Tools for Data Collections

Focus Group Discussions (FGDs): Four Focus Group Discussions (FGDs) with five-six
members/Group were conducted covering various socio-economic groups in the study area,
to gain an insight into the perceptions and opinions of villagers towards improvised cook-
stoves (Details listed in Annexure 1).
Structured Questionnaire: The survey based on structured questionnaire aimed at:

 Establishing penetration rate of traditional cook-stoves in rural areas,

 Determining wood usage pattern of rural households,
 Establishing level of health problems experienced by rural population due to exposure
to traditional cook-stoves, and
8
  Identifying trends in socio-demographic factors associated with likelihood of
purchase of improved cooks-stoves among rural population.
(See Annexure 2 for the complete questionnaire)

Semi-Structured Interviews: Semi- structured interviews were conducted with respondents

from urban area. These were done to gain an insight into market potential for improved cook-
stove in urban regions. (See Annexure 3)

Informal Discussions: Informal discussions were carried out with village panchayat and co-
operative society officials as well as with household members. These were done to in order to
have a better insight on the cooking and allied practices as well as socio-demographic
condition of the villages.

2.4. Survey Variables

Table 1: Survey variables

S. No. Socio- Wood Cook-stoves Health Improved cook-

demographi Pattern Related Problem stove (IC) related
c variables usage Variables associated variables
Variables with
Traditional
stoves
1 Age Wood Cook-stove Eye Score on a scale
source types in use: Problems of 1-5 on features
Traditional, (Watering, of improved cook-
-Free
Kerosene, LPG, itching in stove: Less wood
-Purchased
Induction, eyes) Consumption, low
Biogas, smoke, portable,
Improved lightweight and
cookstove anti-rust

2 Education If free, Usage Breathing Perceived Price of

level of Collection percentage/Cook Problems( the improved
household Time -stove type Coughing, cook-stove
(HH) head (Hour/day) shortness of
breath,

9
 difficulty in
breathing)
3 Primary If
Occupation Purchased,
of the Wood rate
Household (INR/Kg)

4 Family Size Wood

usage/day
(Kg/day)

5 No. of
women

6 No. of
children
7 BPL Status
8. Type of
House
(Kuccah/Puc
cah)

Definition of the survey variables

 HOUSEHOLD or family is defined comprising of those who lived together and

ordinarily cooked at the same hearth.
 EDUCATION: Highest level of education completed.
 AGE: Total years completed till last birthday.
 KUCCAH HOUSEHOLD: is a building made of natural materials such
as mud, grass, bamboo, thatch or sticks and is therefore a short-lived structure.
 PUpuccahCCAH HOUSEHOLD: is a structure made from materials resistant to wear,
such as forms of stone or brick, clay tiles, metal or other durable materials, sometimes
using mortar to bind, that does not need to be constantly maintained or replaced.
 OCCUPATION CATEGORIES: Agriculture, agricultural labour, industrial labour,
self-employed (business), job, animal husbandry and combinations of these.

10
  SCORE ON IMPROVED CHULHA FEATURES: Score on a scale of 1-5 was taken
where 1=Not at all important 2 = Somewhat important 3 = Moderately important 4 =
Important 5 = Very Important for 5 features:
1. 50% less wood consumption:
2. Less smoke
3. Portable
4. Light Weight
5. Rust-Free

2.3Data collection Method

Structured interviews were carried out on the basis of census data collection method covering
2152 HHs in 6 villages assigned by the organisation. Out of these 2152 visited HHs, only
wood user households were studied. In total there were 1885 wood user HHs . The survey
covered around 87.83 % of the total study population. The rest 8% could not be surveyed due
to various reasons like absence during the time of survey and refusal to get surveyed for
likely reasons like hesitation or reluctance to provide information. The details of survey can
be seen from Table 2.

Table 2: Survey details

S. No. Village Name District No. of No. of Survey

Name household households Penetration %

(Census,2011) visited

1 Vemali (Pilot Vadodara 359 160 44.56

study)

2 Vasna Vadodara 561 398 72.72

3 Virodh Vadodara 545 504 92.47

4 Agas Anand 516 460 89.14

5 Shekhadi Anand 233 223 95.70

6 Rajnagar Anand 595 567 94.60

Total =2450 Total=2152 Average=87.83

11
2.4Data Analysis Tools
Various analytical tools have been utilized to for the study:
 MS Excel- For descriptive analysis of the data
 SPSS: Segmentation to identify the target market using K-means Cluster Analysis
 STATA: To ascertain probability of purchase likelihood using Logit model

2.5Methodology

Product Focus Group Questionnaire

Pilot Survey
Analysis Discussionss Development

Final
Analyzing gap
Data Analysis Data collection Questionnaire
areas
Development

Need Establishing Recommenda-

Conclusion
Assessment target market tions

Figure 7: Study Methodology

1. Collection of product related information to have an understanding of the

manufacturing process, supply chain and features of the improved cook-stoves
manufactured by Greenway Grameen
2. Four Focus Group Discussions in different villages to identify the perceptions of
villagers towards various types of cooking stoves and improved cook-stoves
3. Based on the data obtained from product related information and FGDs, preparation
of structured questionnaire to conduct the pilot survey
4. Pilot survey to gain information for improving the efficiency of the main survey
5. Based on the data obtained from pilot survey, development of the final questionnaire
6. Conduction of the survey in two villages of Vadodara (Vasna and Virodh), and three
villages of Anand (Agas, Shekhadi and Rajnagar) using census data collection method

12
7. Data analysis using Logit model and K-means Cluster analysis to establish major
findings of the study
8. Conclusion and recommendations based on the findings of the data analysis.

13
3. DATA ANALYSIS AND FINDINGS

3.1Descriptive Analysis
Table 3: Descriptive analysis for continuous variables

Continuous Variables
Age Education Family_Size
Valid 1885 1885 1885
N
Missing 0 0 0
Mean 44.46 5.60 4.88
Median 42.00 5.00 5.00
Mode 40 0 4
Std. Deviation 12.331 3.791 2.123
Variance 152.043 14.371 4.505
Range 65 13 15
Minimum 20 0 1
Maximum 85 13 16

The average age of respondents (and standard deviation in parentheses) was 45 years (12.3
years). The average education level was upto 5th standard (4). Average family size came out
to be 5 (2). (From Table 3)
Table 4: Descriptive analysis for occupation type

Occupation Frequency Percent Cumulative

Percent
Agriculture 525 27.9 27.9
Agriculture+Animal
168 8.9 36.8
Husbandry
Agricultural Labour 129 6.8 43.6
Job 433 23.0 66.6
Business 66 3.5 70.1
Valid
Business+Agriculture 7 .4 70.5
Business+Labour 1 .1 70.5
Job+agriculture 24 1.3 71.8
Job+Labour 49 2.6 74.4
Labour 483 25.6 100.0
Total 1885 100.0

14
Approximately 28% of the respondents were involved with agriculture as the main source of
income. Apart from that, 25% and 23% of the respondents were involved with labour and
regular job, respectively. (From Table 4)
Table 5: Descriptive analysis for BPL status

BPL Status Frequency Percent Cumulative Percent

Yes 896 47.5 47.5

Valid No 989 52.5 100.0
Total 1885 100.0

Approximately 53% of the respondents were above the poverty line. (From Table 5)

Table 6: Descriptive analysis for household type

Household Type Frequency Percent Cumulative Percent

Kuccah 806 42.8 42.8

Valid Puccah 1079 57.2 100.0
Total 1885 100.0

Approximately 57% of the respondents owned a puccah house. (From Table 6)

Table 7: Descriptive analysis for cook-stove type

Cookstove type Frequency Percent Cumulative

Percent
Traditional cook-stove 1200 63.7 63.7
Traditional+Kerosene Stove 6 .3 64.0
Traditional stove+LPG 672 35.6 99.6
Traditional
Valid 5 .3 99.9
stove+LPG+Kerosene Stove
Traditional
2 .1 100.0
stove+LPG+Induction
Total 1885 100.0

63.7% of the study population was using traditional cook-stoves for cooking and allied
practices. Other 35.6% of the respondents had a combination of traditional and LPG stoves.
The rest 0.7% used combinations of traditional, kerosene, LPG and induction cook-tops.
(From Table 7)

15
 Table 8: Descriptive analysis for wood source

Wood_Source Frequency Percent Cumulative Percent

Free 1860 98.7 98.7

Valid Charged 25 1.3 100.0
Total 1885 100.0

Table 9: Descriptive analysis for wood usage & collection time

Wood Usage N Minimum Maximum Mean Std. Deviation

Wood_Usage_Per_Day 1885 .80 20.00 7.7739 3.07276
Wood_Collection_Time 1885 .00 6.00 2.2402 .98615
Valid N (listwise) 1885
Majority of the study population sourced firewood from free sources like farm fields, forest,
etc. On an average, the wood collection time came out to be almost 2 hours/day. Average
wood consumption came out to be 8 kilograms on a daily basis. (From Table 8 and 9)

Table 10: Descriptive analysis for health problems due to traditional cook-stoves

Health_Problems Frequency Percent Cumulative

Percent
No Issues 607 32.2 32.2
Eye problems 1102 58.5 90.7
Valid Breathing problems 86 4.6 95.2
Eye+Breathing problems 90 4.8 100.0
Total 1885 100.0
More than 50% of the respondents reported eye problem due to cooking on traditional cook-
stoves. Only 5% reported breathing problems. This could because negative impact of smoke
on breathing is difficult to gauge on a short basis. (From Table 10)

Table 11: Descriptive analysis for scores on attributes of the improved stove

Scores on improved N Minimum Maximum Mean Std. Deviation

cook-stove attributes
Less_Wood_Consumption 1885 2 5 4.41 .643
Low_Smoke 1885 2 5 4.43 .706
Portable 1885 1 5 3.81 .874
Light_Weight 1885 1 5 2.90 1.041
Anti_Rust 1885 1 5 2.39 1.085
Valid N (listwise) 1885

16
Attributes of the improved stoves like less wood consumption and low smoke were highly
realized by the respondents. On the other hand, attributes such portability, lightweight and
anti-rust fared low importance among the study population. (From Table 11)

Table 12: Descriptive analysis for perceived price

Percieved_Price N Minimum Maximum Mean Std. Deviation

Percieved_Price 1885 100 1500 527.48 191.321
Valid N (listwise) 1885

Table 13: Descriptive analysis for perceived price between INR 1000-1500

Percieved_Price_1000_1500 Frequency Percent Valid Percent Cumulative

Percent
No 1838 97.5 97.5 97.5
Valid Yes 47 2.5 2.5 100.0
Total 1885 100.0 100.0
The average price which respondents were willing to pay for the improved stoves came out to
be INR 527. The actual price of the product was INR 1500, but a mere 2.5% of them quoted
price between INR 1000-1500.

17
3.2Need Assessment
A needs assessment is a process for determining and addressing needs, or "gaps" between
current conditions and desired conditions. In this study, to assess need for improved biomass
stoves, collected data was analyzed to arrive at a conclusion whether there is a need for such
improved stoves or not, in rural areas.

87% of the study population is still dependent on traditional cook-stoves in some form (See
Figure 8). It shows that majority of them still lack an access to clean form of energy and, in
turn are exposed to harmful impact of Household Air Pollution (HAP) due to burning of
biomass fuel.

Traditional Cook-Stove Types

stove+LPG+
Induction
Traditional
0.10% LPG
stove+LPG+
Kerosene 13%
Stove
0.26%
Traditional
stove+LPG Traditional
31% cook-stove
56%
Traditional+
Kerosene
Stove
0.318%
Figure 8: Cook-stove types

As it can be seen from Table 14, on an average, 8 kg of firewood is burned in a household

daily and takes 2 hours for collection. This not only results in negative health outcomes but
also is also very harmful to the environment.

Table 14: Wood usage & collection time

Average
Wood_Usage_Per_Day 7.7739 Kg
Wood_Collection_Time 2.2402 Hour/Day

18
68% of the respondents reported health problems related to eyes and breathing due to
cooking on traditional stoves. (See Figure 9)

Reported Health Problems

Breathing
problems Eye+
5% Breathing
problems
No Issues 5%
32%

Eye
problems
58%

Figure 9: Reported health problems due to traditional cook-stoves

These above figures provide evidence that there is an immediate need to provide rural
households with better term of cooking devices. Therefore, there is need for an intermediate
solution between traditional stoves and LPG stoves. The improved cook-stoves reduce wood
consumption and emit less smoke due to efficient burning of fuel. Thus, these stoves emerge
as an effective solution to the need.

3.3Logit Model

The linear probability (LP) model is:

Y = a + BX + e
Where,
 Y is a dummy dependent variable, =1 if event happens, =0 if event doesn't happen,
 a is the coefficient on the constant term,
 B is the coefficient(s) on the independent variable(s),
 X is the independent variable(s), and
 e is the error term.

19
The logistic regression model is simply a non-linear transformation of the linear regression.
Logit Model is a binary outcome model. Where the dependent variable:
0 𝑖𝑓 𝑓𝑎𝑖𝑙𝑢𝑟𝑒
𝑦={
1 𝑖𝑓 𝑠𝑢𝑐𝑐𝑒𝑠𝑠
In the linear regression model, the dependent variable y has to be continuous, but when the
dependent variable is dichotomous or binary in nature, linear regression is not applicable.
The "Logit" model/logistic regression model is:

ln[p/(1-p)] = a + BX + e or
[p/(1-p)] = exp(a + BX + e)

Where,
 ln is the natural logarithm, logexp, where exp=2.71828…
 p is the probability that the event Y occurs, p(Y=1)
 p/(1-p) is the "odds ratio"
 ln[p/(1-p)] is the log odds ratio, or "Logit"
 All other components of the model are the same.

The logistic regression constrains the estimated probabilities to lie between 0 and 1. The
"logistic" distribution is an S-shaped distribution function which is similar to the standard-
normal distribution (which results in a Probit regression model) but easier to work with in
most applications (the probabilities are easier to calculate). The Logit distribution constrains
the estimated probabilities to lie between 0 and 1. For instance, the estimated probability is:

p = 1/[1 + exp(-a - BX)]

With this functional form:

 if a + BX =0, then p = .50

 As a + BX gets really large, p approaches 1
 As a + BX gets really small, p approaches 0.

3.3.1 Data Analysis using Logit Model

Logit model is used in consumer economics, to ascertain likelihood of purchasing a product.
With the use of Logit model, probability of likelihood of decision to purchase is established.
In this study, Logit model has been used to predict the purchase probability of the improved
cook-stove associated with various socio-demographic factors
20
For the Logit model in this study , gender, age, education, BPL status, family size,
kuccah/puccah household, type of present cook-stove, wood source, wood collection time are
the independent variables/Predictor Variables.

The dependent variable is a binary response. It takes on two values: 0 and 1, where x = 1 as
a success and x = 0 as a failure.

Respondents who have quoted price at which they would buy the improved cookstove
between:

1. INR 1000-1500 have been coded as 1 (success)

2. INR 0-1000 coded as 0 (failure)

In other words, respondents who have quoted the price near to the actual price (INR 1500)
are more likely to purchase the improved cook-stove.

The Logit model helps in predicting the purchase probability and ascertaining characteristics
of the target population. Following is the the functional equation of the logistic regression for
the study:

Probability (Respondenti =Customer) = f (age, education, occupation, bpl status,

household_type, family_size, wood_source, cook_stove_type)

3.3.2 Independent variables

Table 15: Independent variables type

S.NO. INDEPENDENT VARIABLE VARIABLE TYPE

1 Age Scale
2 Occupation Categorical
3 BPL Status Categorical
4 Household Type Categorical
5 Family Size Scale
6 No. of women in family Scale
7 No. of children in family Scale
8 Wood Source Categorical
9 Wood Usage/day Scale

21
10 Wood Collection Time Scale
11 Cook-Stove type Categorical
12 Health Problems Categorical
13 Score on less wood Consumption Scale
14 Score on low smoke Scale
15 Score on portability Scale
16 Score on light weight Scale
17 Score on rust-free Scale

The study results showed various combinations under categorical variable. To run a logistic
model, coding for each of these combinations was done. This coding can be seen from Table
16:

Table 16: Categorical variable coding

CODING FOR CATEGORIES OF NOMINAL VARIABLE

Nominal
variable Categories Coding
1. Occupation Agriculture 1
Agriculture + Animal Husbandry 2
Agricultural Labour 3
Job 4
Business 5
Business + Agriculture 6
Business + Labour 7
Job + agriculture 8
Job + Labour 9
Labour 10
Cook-Stove Traditional cook-stove 1
Type Traditional Stove + Kerosene Stove 2
Traditional stove + LPG 3
Traditional stove +LPG + Kerosene 4
Stove
Traditional stove + LPG + Induction 5
Health Problems No Issues 0
Eye problems 1
Breathing problems 2
Eye + Breathing problems 3
Wood Source Free 0
Charged 1

22
BPL Status Yes 0
No 1
Household Type Kuccah 0
Puccah 1

3.3.3 Result

Logistic regression Number of obs = 1,620

Prob > chi2 = 0.0000

"Number of obs" - This is the number of observations that were used in the analysis. This
number is smaller than the total number of observations in the data as some observations
were dropped because of predicting failure perfectly.

"Prob > chi2" - This is the p-value, which is compared to a critical value, 0.05 to determine
if the overall model is statistically significant. In this case, the model is statistically
significant because the p-value is less than 0.000.

Following is the regression table output from STATA for continuous variables:

Table 17: Regression table for continuous variables

Percieved_Price_1000_1500 Coef. Std. Err. z P>z [95% Conf. Interval]

Age .0367823 .0151674 2.43 0.015 .0070548 .0665098
Education .3453321 .0756348 4.57 0.000 .1970905 .4935736
Family_Size .082471 .0837633 0.98 0.325 -.081702 .246644
Wood_Usage_Per_Day .0538747 .0770937 0.70 0.485 -.0972261 .2049755
Wood_Collection_Time -.0729112 .1932477 -0.38 0.706 -.4516697 .3058474

"Coef."- These are the values for the logistic regression equation for predicting the
dependent variable from the independent variable. They are in log-odds units. These
estimates tell about the relationship between the independent variables and the dependent
variable, where the dependent variable is on the Logit scale.

For example, from table the coefficient (or parameter estimate) for the variable Education is
.3453321. This means that for a one-unit increase in education, an increase of .345332 is
expected in the log-odds of the dependent variable, holding all other independent variables
constant. Same is applicable for the other continuous variables.

23
Following is the regression table from STATA for categorical variables:

Table 18: Regression table for categorical variables

Percieved_Price_1000_1500 Coef. Std. Err. z P>z [95% Interval]

Conf.
Occupation
Agriculture+Animal .2073774 .7235424 0.29 0.774 -1.21074 1.625495
Husbandry
Agricultural Labour 0 (empty)
Job .8151604 .4373413 1.86 0.062 - 1.672334
.0420127
Business 0 (empty)
Business+Agriculture 0 (empty)
Business+Labour 0 (empty)
Job+agriculture 1.814536 .7357765 2.47 0.014 .3724404 3.256631
Job+Labour 0 (empty)
Labour - 1.085372 - 0.245 - .8648581
1.262432 1.16 3.389723
BPL_Status
No 1.588505 .7489244 2.12 0.034 .1206402 3.05637
Household_Type
Puccah 2.074978 1.035423 2.00 0.045 .0455859 4.10437
Wood_Source
Charged 1.789615 .9666755 1.85 0.064 - 3.684265
.1050337
cook_Stove_Type
Traditional+Kerosene Stove 0 (empty)
Traditional stove+LPG - .3777886 - 0.193 -1.23196 .2489439
.4915081 1.30
Traditional 0 (empty)
stove+LPG+Kerosene Stove
Traditional 0 (empty)
stove+LPG+Induction
_cons - 1.64167 - 0.000 - -8.65362
11.87123 7.23 15.08885

Interpretation for categorical variables is different from continuous variables. For example,
from table the coefficient for the category puccah under variable household type is
2.074978. This means that by owning a puccah household, an increase of 2.074978 is
expected in the log-odds of the dependent variable, as compared to owning a kuccah house,
holding all other independent variables constant. Same is applicable for the other categorical
variables.

"constant "- is the expected value of the log-odds of the dependent variable when all of the
predictor variables equal zero.

24
However, interpretation of regression tables can be challenging in the case of nonlinear
models such as logistic regression. In these models, the raw coefficients are often not of
much interest as they are in forms of log odds. A post-estimation technique known as
Average Marginal Effect (AME) is used to see effects on outcomes such as probabilities.
With the help of this technique, marginal effect associated with independent variables is
ascertained.

With categorical independent variables, marginal effects measure discrete change, i.e. how do
probabilities change as the independent variable changes from base category to the other.

Marginal effects for continuous variables measure the instantaneous rate of change (the
amount of change in probabilities produced by a 1-unit change in the independent variable).
See Annexure 4 for the complete output.

3.3.4 Marginal Effect for Continuous variables

Average marginal effects Number of obs = 1,620

Table 19: Average marginal effects for continuous variables

Delta-method

dy/dx Std. Err z P>|z| [95% Conf. Interval]

0.00161
Age .000888 0.000888 0.0003726 2.38 0.017 0.0001577 83
0.01214
Education 0.0083371 0.0019416 4.29 0.000 0.0045316 25
0.00595
Family_Size 0.001991 0.0020241 0.98 0.325 -0.0019762 82
0.00495
Wood_Usage_Per_Day 0.0013007 0.001864 0.70 0.485 -0.0023527 4
0.00738
Wood_Collection_Time -0.00176 0.0046665 -0.38 0.706 -0.0109064 6

Findings
1. Age: An increase in age by one year raises the probability of purchase likelihood by
0.1%.
2. Education: An increase in education by one standard raises the probability of
purchase likelihood by 0.8%.

25
 3. Family size: An increase in family size by one member raises the probability of
purchase likelihood by 0.2%.
4. Wood Usage/Day: An increase in wood usage by one 1 Kg raises the probability of
purchase likelihood by 0.1%.
5. Wood Collection Time: An increase in wood collection time by one hour decreases
the probability of purchase likelihood by 0.2%.

3.3.5 Marginal Effect for Categorical Variable

Table 20: Average marginal effects for categorical variables

Delta-method
[95% Interva
dy/dx Std. Err z P>|z| Conf. l]

Occupation
-
0.00383 0.2 0.023559 0.0312
Agriculture+Animal Husbandry 24 0.0139756 7 0.784 2 241
(not
Agricultural Labour . estimable)
0.01954 2.0 0.000790 0.0383
Job 96 0.0095713 4 0.041 1 091
(not
Business . estimable)
(not
Business+Agriculture . estimable)
(not
Business+Labour . estimable)
-
0.06557 1.6 0.012345 0.1434
Job+agriculture 39 0.0397555 5 0.099 4 932
Job+Labour . (not (not
estimable) . estimable)
- - -
0.01287 1.5 0.029301 0.0035
Labour -.0128729 3 0.0083821 4 0.125 5 557

BPL_Status
0.02530 3.4 0.010952 0.0396
No 61 0.0073234 6 0.001 6 597

Household_Type
Puccah 0.02802 0.0068095 4.1 0.000 0.01468 0.0413

26
 65 2 729

Wood_Source
-
0.07797 1.2 0.046393 0.2023
Charged .0634527 12 0.0779712 3 0.219 7 362

cook_Stove_Type
(not
Traditional+Kerosene Stove . estimable)
- - -
0.01245 1.2 0.032098 0.0071
Traditional stove+LPG 3 0.0100231 4 0.214 1 919
Traditional (not
stove+LPG+Kerosene Stove . estimable)
Traditional (not
stove+LPG+Induction . estimable)

Note: dy/dx for factor levels is the discrete change from the base level.

Findings
1. Occupation : As compared to having agriculture as the only occupation-
 Having Agriculture + Animal Husbandry as occupation raises probability of
purchase likelihood by 0.3%.
 Having a regular job as an occupation raises the probability of purchase
likelihood by 2%.
 Having a regular job + Agriculture as occupation raises the probability of
purchase likelihood by 7%.
 Being a wage laborer decreases the probability of purchase likelihood by 1%.
1. Falling above the Poverty Line raises the probability of purchase likelihood by 3% as
compared to falling below the poverty line.
2. Owning a puccah house raises the probability of purchase likelihood by 3% compared
to owning a kuccah house.
3. Purchase of firewood for cooking raises the probability of purchase likelihood by 8%
compared to collecting firewood from a free source (farming fields, forest etc).
4. Owning traditional stove +LPG decreases the probability of purchase likelihood by
1% compared to owing only a traditional stove.

27
 3.3.6 Conclusion
Households with larger family size and having family head with higher level of education
which:
 Fall above poverty line,
 Own a puccah house,
 Having job or job + agriculture as the main source of income,
 Own a traditional cook-stove, and
 Purchase firewood for cooking
Emerge as the possible target segment for the improved cook-stoves.

3.4 Segmentation & Target Market Identification

Segmentation/clustering is the process of the dividing the market into smaller homogenous
segments. A market segment is a group of actual or potential customers who want the market
offering to provide the similar benefits or similar solutions and hence are expected to respond
in a similar way.

Segmentation in carried out using basis variables. Basis variables explain variation s in
perception of a product among the respondents or study population. These are continuous
(interval or ratio) variables. For the study, scores on attributes of improved cook-stoves were
taken on a scale of 1-5 (where 1 =not at all important, 2 = somewhat important, 3 =
moderately important, 4 = important, 5 = very important). These attributes of the improved
cook stoves were: Lesser wood consumption, low smoke, portability, light weight and anti-
rust.

Profiling is the process of describing the market segments identified through segmentation.
Profiling is done based on descriptor variables. Descriptor variables are observable or
general characteristics of the study population. These can be categorical, ordinal or, on scale.
For the study, suitable descriptor variables were:

28
 Demographic Wood Usage Pattern Cook-stove type

• Age • Wood source • Traditional (Mud)

• Education • Wood consumption stove
• BPL Status • LPG
• Family Size • Kerosene stove
• Household Type • Induction cook top

Figure 10: Descriptor Variables

K-Means Clustering Algorithm is used for the creation of segments/clusters among the study
population. Clustering can be viewed as a division of data into groups of similar objects.
Each group or cluster consists of objects that are similar among themselves and dissimilar to
objects of other groups.

K-means clustering algorithm is a partitioning algorithm that relocates instances by moving

then from one cluster to another until desired clustering structure is obtained. K-means
clustering algorithm partitions data into K-clusters (C1, C2… Ck) represented by their
centres or means. The mean of each cluster is represented as the centre of that cluster. This
algorithm aims at minimizing an objective function, e.g. a squared error function. (Rokach
and Maimon, 2005).

The program will start with k random clusters, and then move objects between those clusters
with the goal to minimize variability within clusters and, maximize variability between
clusters. In k-means clustering, the program tries to move objects (e.g., cases) in and out of
groups (clusters) to get the most significant ANOVA results. The best number of
clusters k leading to the greatest separation (distance) is not known as a priori and is
computed using Variance Criterion Ratio (VRC) and least omega value.

Calinski and Harabasz (1974) introduced the VRC, which can be used to determine the
“correct” number of clusters in a cluster analysis. For a solution with N objects and K
segmenst, the criterion is given by:

𝑆𝑆𝐵
𝑉𝑅𝐶𝑘 = 𝐾−1
𝑆𝑆𝑊 /(𝑁 − 𝐾)

Where 𝑆𝑆𝐵 is the overall between-segment variation and 𝑆𝑆𝑊 is the overall within-segment
variation with regard to all clustering variables. The criterion should look familiar, as this is

29
actually the F-value of a one-way ANOVA with K representing the number of factor levels.
Consequently, the VRC can easily be computed using excel.

To finally determine the “correct" number of segments; computation of 𝜔𝑘 (Omega Value)

for each segment solution is as following:

𝜔𝑘 = (𝑉𝑅𝐶𝑘+1 − 𝑉𝑅𝐶𝑘 ) − (𝑉𝑅𝐶𝑘 − 𝑉𝑅𝐶𝑘−1 )

In the next step that value of K is chosen which minimizes the value of 𝜔𝑘 .

3.4.1 Target Segment Identification Process

Categorization of Establishing
Final number of basis
Basis and Descriptor Correlation among
variable for analysis
Variables basis variables

K-means Cluster
Final Number of VRC & Omega value
Analysis (for 2 to 8
clusters Calculation
no. of Clusters)

Target
Target Segment
Cluster/segment Conlusion
Profiling
Identification

Figure 11: Target Segment Identification Process

3.4.2 Result

Following the categorisation of basis and descriptor variables, correlation was established
among the five basis variables. The results are shown in Table 21:

Table 21: Correlation table for the basis variables

Correlations
Less_Wood_ Low_ Portable Light_ Anti_Rust
Consumption Smoke Weight
Less_Wood_ Pearson
1 -.052 .039 .049 -.045
Consumption Correlation

30
 Pearson
Low_Smoke -.052 1 -.052 -.029 .000
Correlation
Pearson
Portable .039 -.052 1 .486 .498
Correlation
Light_Weigh Pearson
.049 -.029 .486 1 .513
t Correlation
Pearson
Anti_Rust -.045 .000 .498 .513 1
Correlation

Basis Variables selected were:

1. Less wood Consumption
2. Low smoke
3. Portability
4. Anti-Rust

Light Weight was dropped out from the analysis due to strong correlation with Portability and
Anti-Rust (>.5).
To compute the VRC statistic for each case of number of segments, sum of the F-values from
ANOVA tables for 2-8clusters was calculated using spreadsheet program, Microsoft Excel.
(See Annexure 5 for all ANOVA tables) .The results are shown in Table 22:

Table 22: VRC and Omega value calculation

Low_Smoke Less_Wood_ Portable Anti_Rust Pooled Omega

Consumption Variance
No. Of Ratio
clusters Criterion

2 12.496 0.749 1948.679 2392.253 4354.179

3 300.970 0.962 1093.123 1922.529 3317.584 1462.819

4 448.159 6.904 810.293 2478.452 3743.809 -1614.709

5 156.943 107.290 535.678 1755.412 2555.323 1363.666
6 976.052 53.936 677.136 1023.379 2730.504 -593.782
7 324.549 181.486 680.646 1125.221 2311.903 84.169
8 342.706 167.803 571.899 895.0629 1977.471 609.309

To determine the “correct” number of segments, for each segment solution 𝜔𝑘 is caluclated.
For example, for K =4, 𝜔𝑘 is given by
𝜔𝑘 = (2555.323 − 3743.809) − (3743.809 − 3317.584) = −1614.709

31
Comparing the values for 𝜔𝑘 , it is established that the minimum is achieved for 𝐾 = 4
(highlighted in yellow).
Thus, a four-segment solution was chosen for the analysis.

3.4.3 Target Segment Identification and Profiling

The results for the final cluster centres (for 𝐾 = 4 ) are shown in the following table:

Table 23: Final cluster centres for K=4

Final Cluster Centers

Cluster
1 2 3 4
Less_Wood_Consumption 4.49 4.34 4.33 4.47

Low_Smoke 3.37 4.52 4.42 4.75

Portability 4.20 2.89 4.37 4.28

Anti_Rust 2.01 1.38 4.44 2.75

Table 24: Analysis of clusters

Cluster 1 Cluster 2 Cluster 3 Cluster 4

1. High on less wood 1. High on less wood 1. High on less wood 1. High on less wood
consumption consumption consumption consumption
2. Medium on low 2. Very high on low 2. High on low smoke 2. High on low
smoke smoke smoke
3. High on Portability 3. Medium on 3. High on Portability 3. High on
Portability Portability
4. Low on Rust-Free 4. Very Low on Rust- 4. High on Rust-Free 4. Medium on Rust-
Free Free

Cluster Number 3 emerges as the likely target segment because:

 Members of cluster number 3 have given high score on all the four features of the
improved cook stoves.
 It means that members of this cluster are able to identify the benefits of these stoves.
Therefore, the members of this cluster can be the suitable segment to target.
The profiling output can be seen in Annexure 6. The members' profile of the likely target
segment is shown in the following table:

32
 Table 25: Target segment characteristics

Cluster Number 3
Age Middle Aged

Education Moderate

Household Type Puccah

BPL Status No

Family Size Medium

Cook-Stove Type Traditional Cook-Stove

Occupation Agriculture, Job, Agricultre+Job

Wood Usage Medium

3.4.4 Conclusion
The preferred number of segments in which the consumer group can be divided is four. As
per segmentation analysis, lesser wood consumption and low smoke are the most realized
attributes by the respondents. Importance of the other three attributes: portability, light weight
and rust-free vary within the 4 segments.

The segment preferred for targeting has rated high on all the attributes of the improved
cookstove. Therefore, it can be concluded that this segment is able to recognize the benefits
provided by these stoves, making them suitable target customers.

33
4. CONCLUSION

From the study, need for the improved cook-stoves has been established and the suitable
target market has been identified. The suitable target segment is likely to consist of
households with a middle-aged family head, moderately educated with agriculture or a
regular job as the main source of income, owing a puccah house, falling above BPL line, with
a medium sized family using traditional stoves. The members of the likely target segment are
able to recognize the benefits provided by these stoves and willing to pay price near to actual
price of the product. Therefore, they emerge as the possible target segment for the improved
cook-stoves.

However, there are certain limiting factors due to which a large part of the potential market is
still reluctant to buy improved cook stoves. The foremost barrier to improved cook stoves in
rural areas is its high price point & lack of purchasing power of the rural population. There is
a lack of awareness regarding negative impact of using traditional cook stoves. As a result,
rural dwellers are not able to realize the positive health outcomes associated with improved
cook stoves. Also, Perception that using improved cook stove will require behavioral change.

Therefore, a key challenge for will be to ensure that the improved cookstove is affordable
enough for the end-consumer. It can be done either by bringing down the price point, or by
enhancing the availability of consumer financing options like tying up with Micro-Finance
Institutions, or donors and multilateral agencies. To address these limitations, certain
recommendations have been devised, showing a way forward.

34
5. RECOMMENDATIONS

5.1Micro-Finance Institutions (MFIs)

The highest sales of Greenway's improved cook-stoves are in the states of Kerala, Karnataka
and Tamil Nadu. Interestingly, Karnataka, India’s technology capital is Greenway Grameen’s
biggest market. The reason for this is simple: A well connected network of Self Help Groups
(SHGs). SHGs in these states work with the Microfinance Institutions present there e.g.
SKDRDP (Shri Kshetra Dharmasthala Rural Development Project) in Karnataka, ESAF
(Evangelical Social Action Forum) in Kerala, etc.

These sales are achieved by “Cross-Selling”. It is the practice of selling an additional product
or service to an existing customer. Unlike the acquiring of new business, cross-selling
involves an element of risk that existing relationships with the client could be disrupted. For
that reason, it is important to ensure that the additional product or service being sold to the
client or clients enhances the value the client or clients get from the organization.

Interested SHGs put an Order is sent to

Introducing the product
order Greenway Grameen

MFIs pays in place of SHGs

to Greenway and later Required no. of stoves
collect the cost from are provided to SHGs
memebers in form of EMIs

Figure 12: Cross-selling process

In the process, the prospective MFI is contacted by Greenway Grameen. The improved stoves
are demonstrated to the SHGs' members in collaboration with the MFI. Interested SHGs
inform the MFI about the required number of cook-stoves. Then, the MFI sends an order for
the demand to Greenway Grameen. In the end, stoves are provided to the SHGs. The MFI
pays the company and the money is collected from members in form of instalments. In
Kerala, for instance, many women bought these stoves by paying only ₹65 a week to the
micro-financing institutions.

35
The company has been able to operate and gain a firm foothold by employing this three-way
partnership between the organisation, Microfinance Institutes, and Self Help Groups. It is
recommended to work along the same lines to capture a huge market in the state of Gujarat as
well. But this is also a difficult task, as it requires creation of a network of SHGs which are
not only well connected but also perform well in order to get into a contract with both MFIs
and Greenway. Hence, focus should be on identification of strong SHGs which connected
with MFIs, so that improved cook-stoves reaches the rural population and provide them with
a healthy and efficient way of cooking.

5.2Inclusion of Greenway stoves in CSR of organizations

The organisation can tie up with Corporate Social Responsibly (CSR) wings of donor
organisations to raise corporate grants. It can enable some of the lowest income customer to
purchase stoves and improve their livelihoods. These donor organisations can buy cook-
stoves from the organisation as per demand and distribute them to the rural households under
their ambit, on a subsidized rate, or as per company policy. This would help in increasing the
reach of the product and in turn, bringing a positive change in the life-style of the recipient
rural households.

Apart from the subsidized product, the firm also has scope of identifying firms and
companies that provide aid to the firm under their CSR activities at different points in supply
chain like, in material procurement or transportation, etc. They can also work with the
organization that can help them to collaborate with the suitable donor organisation whose
CSR objectives are in the areas like clean energy, rural development, environment
sustainability, etc.

For example: Samhita. It provides access to a growing network of NGOs to address social
issues as well as reach out to bottom-of-the-pyramid (BoP) markets. It can collaborate with
the organization to provide inputs on corporate social responsibility (CSR) initiatives that
address core business needs. It work closely with their network of NGOs across India to
bring access to funding, partnerships with companies, new models, in-kind donations,
enhanced communications capabilities and much more.

The company can develop a CSR Strategy Model in the form of a brief manual so that they
can use it while approaching a potential donor to raise corporate grants for the improved
cook-stove.

36
This CSR Strategy Model(s) would provide framework for approaching and incentivizing
organizations and businesses to invest in the Improvised cook-stove.

The CSR Strategy Model can broadly comprise of following key components:

a) CSR Process: It involves environmental scanning for present laws on CSR,

identification of potential organizations who may be targeted for CSR grants, develop
understanding of various channels through which organizations can support the sale of
improvised cook-stove, etc.

b) CSR Initiatives: Identification of the possible form of CSR initiative, which can be
utilized by the potential organizations to fulfil their CSR investment requirements.

c) CSR Performance: Identification of key CSR performance parameters that funding

organizations may report to their stakeholders and for other reporting purposes.

5.3Awareness
Greenway Grameen must is recommended to undertake initiatives to inform, educate,
and empower rural dwellers about the health issues caused by Household Air Pollution
(HAP) and how the improved cookstove act as a better alternative, particularly for women as
they are the end users of the product

Two ways by which awareness can be spread are:

 Engaging women in supervision, implementation and distribution: As women are the

end users of the stove, they need to be involved in all stages of development and
promoting improved cook stoves. An awareness drive amongst women by women can
help in horizontal spread of this technology and sensitizing about the health impacts
and other benefits from using the new stoves.

1. Government Channels: Government channels, such as schools, health clinics, and

social services institutions, reach every village in India. If an awareness campaign
could leverage these channels, it could directly contact and influence even the most
remote communities.

37
5.4Market Potential in urban areas
A small pilot study was done to find out market potential for the improved stoves in urban
area (Annexure 3). Majority of the responses were favourable to such kind of a product. It
was noted that taste of food cooked on wood is preferred over LPG stove/Induction. Smoke
reduction was rated as the most important attribute of the stove.

It was found out that people are willing to buy the product, mainly for better tasting food and
leisurely activities like, for cooking food on weekends, during picnics, etc., but not for
regular meals. Some of them wanted to use it for heating water to save LPG.

Some of the respondent told they want a few additional features in the product like a
detachable ash-collecting tray that can easily remove the ash from the improved cook-stove.
They were ready to pay an extra price for such features. Therefore, urban area can also
emerge as a potential market segment for the improved stoves. Further research in this area is
recommended.

38
6. REFERENCES

1. Taishi, Y., 2004. Clearing the smoke : Improving Health using smokeless chulhas. Eye
on Microfinance, 2(3).

2. Deutsche Gesellschaft für International Zusammenarbeit (GIZ), 2014. The Kaleidoscope

of Cooking Understanding Cooking Behaviour and Stove Preferences in Rural India.
New Delhi: Deutsche Gesellschaft für International Zusammenarbeit (GIZ).

3. Rokach, L. and Maimon, O., 2005. Data mining and knowledge discovery handbook. 2nd
ed. London: Springer.

4. Calinski, T. and Harabasz, J., 1974. A Dendrite Method for Cluster Analysis.
Communications in Statistics – Theory and Methods, 3(1), pp.1-27.

39
 Annexure
Annexure 1: Focus Group Discussions (FGDs)
FGD - 1

No. of Gender Occupation Age- Income Stove-

participants range range Type
M F Agri- Labo- Business Home- Oth
(Year (k)
culture ur maker -ers
s)

7 3 4 2 2 0 3 0 25-40 5000- 3-T

15000 2-LPG
2-T+LPG

T= Traditional cook-stove; LPG= Liquid Petroleum Gas

Place: Virodh (Vadodara)

Topic: Cook-stove

Participants came up with the discussion that they were comfortable with traditional cook-
stove and prefer to cook in closed surroundings. LPG refill centres were very far from the
village because of that participants faced problem of accessibility. Participants were habitual
of the cooking on traditional cook-stoves. From the discussion, the most important feature of
improved cook-stove was low smoke emissions. Participants used LPG only when there was
time constraint or there was a small task like making tea as traditional stoves took at least 10-
15 minutes for ignition of fire and heating the utensils.

viii
FGD- 2

No. of Gend Occupation Age- Income Cook-

participant -er range range stove
(Year (k)
M F Agri- Lab Business Home- Other
s)
culture -our maker

9 5 3 4 2 0 3 0 30-50 2500- 6-T

10000 2-
T+LPG
1-T+K
T= Traditional cook-stove; LPG= Liquid Petroleum Gas; K= Kerosene oil
Place: Vemali (Vadodara)

Topic: Cook-stove

Findings:

Most of the participants were below the BPL line, because of this; their purchasing
power was very low to afford LPG stoves. All of them used traditional cook-stoves.
Some the participants used kerosene stoves also but rarely due to scare availability of
kerosene. Participants also told of problems like watering and itching of eyes while
cooking on traditional stoves but these were not seen as major threats to health. Cost is
also a matter of concern for them as traditional cook-stove are free of cost. Participants
were not concerned about lesser wood consumption in the improved stoves; as wood is
available freely, that too in abundance.

ix
FGD- 3

No. of Gend Occupation Age- Income Cook-

participant -er range range stove
(Year (k)
M F Agri- Lab Business Home- Other
s)
culture -our maker

4 2 2 0 0 1 2 1 25-50 10000- 1=T+LPG

+GSS
25000
2=T+LPG
1=T
T= Traditional cook-stove; LPG= Liquid Petroleum Gas; GSS= Greenway Smart Stove

Place: Vasna (Vadodara)

Topic: Cook-stove

Findings:

Participants came up with the discussion that the height of GSS was more than required.
Wood of large diameter doesn’t go inside GSS. “Rotla” (Chapatti made up of millet) which is
a staple diet in Gujarat, takes more time on GSS than traditional cook-stove. When asked if
their neighbours and relatives were interested in buying this cook-stove then it was informed
that price was a big constraint. The participants wanted wider feeding chamber. Participants
discussed about the disadvantages of traditional cook-stove like unsuitability of cooker on
traditional stoves, blackening of utensils because of soot formation, long start-up time, etc.
Participants were able to realize the benefits of GSS. They could also use saw-dust as a fuel
in GSS but not in traditional cook-stove. When it came to LPG stoves, it was told availability
is not an issue but it was an expensive alternative. To elongate the running time of the LPG,
participants preferred using biomass cook-stoves for chores like boiling water, etc.

x
FGD-4

No. of Gend- Occupation Age- Income Cook-

participant er range range stove
(Year (k)
M F Agri- Lab Business Home- Other
s)
culture -our maker

5 3 2 1 2 0 2 1 25-50 15000- 1=LPG+G

30000 SS
3=T+LPG
1=T
T= Traditional cook-stove; LPG= Liquid Petroleum Gas; GSS= Greenway Smart Stove

Place: Agas (Anand)

Topic: Cook-stove

Findings:

Participants had a GSS which they used for making “Rotla” and boiling water. Before
owning a GSS, they used traditional stoves for the same purpose. Participant didn’t had any
problem while making “Rotla” on GSS as they were using flat non-stick pan. Participant
came up with discussion that wood used in boiling water was less than used in traditional
cook-stove. Participants did not face the problem of blackened utensil with GSS.

The major benefit for them was portability. They had small children in the house who were
prone to get hurt due to fire from the traditional cook-stove stationed on ground level. GSS
solved that problem due to light weight and portability. The participant quoted the price for
smart stove around INR 1000.

xi
Annexure 2: Improved Cook-stove Questionnaire-Rural
Name- …………………………………..…………………………………..……
1. Age- ……………………………………………………………………………...
2. What is the educational qualification of head of the family?
…………………………………………………………………………………...
3. How many family members do you have?
…………………………………………………………………………………...
4. How many children are there in your family?
…………………………………………………………………………………...
5. How many female members are there in your family?
…………………………………………………………………………………...
6. Do you have a BPL card?
Yes No
7. What are the cooking devices in your home?
Traditional cook-stove
LPG
Kerosene stove
Induction stove
8. What is the usage percentage of the selected cooking devices?
…………………………………………………………………………………...
9. What is the daily firewood consumption (kg) in your home?
…………………………………………………………………………………...
10. Is the firewood you use is free or charged?
…………………………………………………………………………………...
11. If free, how much time is required in collection of firewood?
…………………………………………………………………………………...
12. If purchased, what is the rate of wood per kg?
…………………………………………………………………………………...
13. What are the health issues you face while cooking on traditional cook-stoves?
Eye Problem
Breathing problem

xii
14. What would be your score on a scale of 1-5 for the following attributes of the proposed
cookstove?
1=Not at all important 2 = Somewhat important 3 = Moderately important 4 = Important 5 = Very Important

Portability Light Weight 70% smoke reduction 50% reduction in wood consumption

Rust-free

15. What price would you be willing to pay for the proposed cookstove (INR)?

…………………………………………………………………………………...…………

xiii
Annexure 3: Improved Cook-stove Questionnaire-Urban
1. Name- …………………………………..…………………………………..…….......
2. Gender
Male Female
3. Age
18-29 years old 30-49 years old 50-64 years old 65 years and over

4. What is the highest degree or level of education you have completed?

8th Completed
HSC
SSC
Diploma
Graduate
Post graduate
Doctorate
5. Which of the following categories best describes your primarily area of employment?
Home-maker Agriculture Private Job Government Job Self-Employed
Manual Labour Unemployed Others...................................
6. What is your monthly household income (INR)?
Below 10000
10000-20000
20000-35000
35000-50000
Above 50000
7. What are the cooking devices in your home?
Primary

Secondary

Others

8. Have you had regular meals cooked on mud chulhas in the past?
Yes No Sometimes
9. If yes, then do you like meals cooked on mud chulhas over LPG stoves & induction
cooks-stoves?
Yes No Maybe

xiv
10. Would you like to purchase a portable, light-weight, low-smoke chulha with reduced
wood consumption to prepare your meals which taste similar to the meals prepared on
mud chulhas?
Yes No Maybe
11. How often would you use the proposed chulha?
Daily 2-3 times in a week Once in a week Fortnightly Once in a month
Once in 2-3 months Others...................................
12. How do you intend to use the proposed chulha?
Full Meals Grilling Barbequing Roasting Cooking non-vegetarian food

...............................................................................................................................................................
...............................................................................................................................................................
...............................................................................................................................................................
13. What would be your score on a scale of 1-5 for the following features of the proposed
cookstove?
1=Not at all important 2 = Somewhat important 3 = Moderately important 4 = Important 5 = Very Important
Portability Light Weight 70% smoke reduction 50% reduction in wood
consumption
Durable Rust-free
Comments:
.....................................................................................................................................................................
.....................................................................................................................................................................
.....................................................................................................................................................................

14. What price would you be willing to pay for the proposed cookstove (INR)?
Below 500 500-1000 1000-1250 1250-1500 Above
1500..............................

15. What additional features would you like to have in the proposed cookstove and at what
price?
....................................................................................................................................................................
.....................................................................................................................................................................
What features of the proposed cookstove would you like to remove and at what price?
....................................................................................................................................................................
....................................................................................................................................................................

xv
Annexure 4: Logit Model Output (STATA)
logit Percieved_Price_1000_1500 Age Education Family_Size Wood_Usage_Per_Day
Wood_Collection_Time i.Occupation i.BPL_Status i.Household_Type i.Wood_Source
i.cook_Stove_Type

note: 3.Occupation != 0 predicts failure perfectly

3.Occupation dropped and 129 obs not used

note: 5.Occupation != 0 predicts failure perfectly

5.Occupation dropped and 66 obs not used

note: 6.Occupation != 0 predicts failure perfectly

6.Occupation dropped and 7 obs not used

note: 7.Occupation != 0 predicts failure perfectly

7.Occupation dropped and 1 obs not used

note: 9.Occupation != 0 predicts failure perfectly

9.Occupation dropped and 49 obs not used

note: 2.cook_Stove_Type != 0 predicts failure perfectly

2.cook_Stove_Type dropped and 6 obs not used

note: 4.cook_Stove_Type != 0 predicts failure perfectly

4.cook_Stove_Type dropped and 5 obs not used

note: 5.cook_Stove_Type != 0 predicts failure perfectly

5.cook_Stove_Type dropped and 2 obs not used

Iteration 0: log likelihood = -212.69311

Iteration 1: log likelihood = -176.48176
Iteration 2: log likelihood = -153.21024
Iteration 3: log likelihood = -149.44195
Iteration 4: log likelihood = -149.23612
Iteration 5: log likelihood = -149.23421
Iteration 6: log likelihood = -149.23421

Logistic regression Number of obs = 1,620

LR chi2(13) = 126.92
Prob > chi2 = 0.0000
Log likelihood = -149.23421 Pseudo R2 = 0.2984

xvi
Percieved_Price_1000_1500 Coef. Std. Err. z P>z [95% Interval]
Conf.
Age .0367823 .0151674 2.43 0.015 .0070548 .0665098
Education .3453321 .0756348 4.57 0.000 .1970905 .4935736
Family_Size .082471 .0837633 0.98 0.325 -.081702 .246644
Wood_Usage_Per_Day .0538747 .0770937 0.70 0.485 -.0972261 .2049755
Wood_Collection_Time - .1932477 - 0.706 -.4516697 .3058474
.0729112 0.38
Occupation
Agriculture+Animal Husbandry .2073774 .7235424 0.29 0.774 -1.21074 1.625495
Agricultural Labour 0 (empty)
Job .8151604 .4373413 1.86 0.062 -.0420127 1.672334
Business 0 (empty)
Business+Agriculture 0 (empty)
Business+Labour 0 (empty)
Job+agriculture 1.814536 .7357765 2.47 0.014 .3724404 3.256631
Job+Labour 0 (empty)
Labour - 1.085372 - 0.245 -3.389723 .8648581
1.262432 1.16
BPL_Status
No 1.588505 .7489244 2.12 0.034 .1206402 3.05637
Household_Type
Puccah 2.074978 1.035423 2.00 0.045 .0455859 4.10437
Wood_Source
Charged 1.789615 .9666755 1.85 0.064 -.1050337 3.684265
cook_Stove_Type
Traditional+Kerosene Stove 0 (empty)
Traditional stove+LPG - .3777886 - 0.193 -1.23196 .2489439
.4915081 1.30
Traditional stove+LPG+Kerosene 0 (empty)
Stove
Traditional stove+LPG+Induction 0 (empty)
_cons - 1.64167 - 0.000 -15.08885 -8.65362
11.87123 7.23

Average marginal effects Number of obs = 1,620

Model VCE : OIM

Expression : Pr(Percieved_Price_1000_1500), predict()

dy/dx w.r.t. : Age Education Family_Size Wood_Usage_Per_Day Wood_Collection_Time
2.Occupation 3.Occupation 4.Occupation 5.Occupation 6.Occupation 7.Occupation
8.Occupation 9.Occupation 10.Occupation 1.BPL_Status 1.Household_Type 1.Wood_Source
2.cook_Stove_Type 3.cook_Stove_Type 4.cook_Stove_Type 5.cook_Stove_Type

xvii
 Delta-method
[95%
dy/dx Std. Err z P>|z| Conf. Interval]

0.00088 0.000157 0.00161

Age .000888 8 0.0003726 2.38 0.017 7 83
0.00833 0.004531 0.01214
Education 71 0.0019416 4.29 0.000 6 25
-
0.00199 0.001976 0.00595
Family_Size 1 0.0020241 0.98 0.325 2 82
-
0.00130 0.002352 0.00495
Wood_Usage_Per_Day 07 0.001864 0.70 0.485 7 4
-
Wood_Collection_Time - - 0.010906 0.00738
.0017602 -0.00176 0.0046665 0.38 0.706 4 6

Occupation
-
0.00383 0.023559 0.03122
Agriculture+Animal Husbandry 24 0.0139756 0.27 0.784 2 41
(not
Agricultural Labour . estimable)
0.01954 0.000790 0.03830
Job 96 0.0095713 2.04 0.041 1 91
(not
Business . estimable)
(not
Business+Agriculture . estimable)
(not
Business+Labour . estimable)
-
0.06557 0.012345 0.14349
Job+agriculture 39 0.0397555 1.65 0.099 4 32
Job+Labour . (not (not
estimable) . estimable)
- -
0.01287 - 0.029301 0.00355
Labour -.0128729 3 0.0083821 1.54 0.125 5 57

BPL_Status
0.02530 0.010952 0.03965
No 61 0.0073234 3.46 0.001 6 97

Household_Type
0.02802 0.04137
Puccah 65 0.0068095 4.12 0.000 0.01468 29

xviii
Wood_Source
-
0.07797 0.046393 0.20233
Charged .0634527 12 0.0779712 1.23 0.219 7 62

cook_Stove_Type
(not
Traditional+Kerosene Stove . estimable)
- -
0.01245 - 0.032098 0.00719
Traditional stove+LPG 3 0.0100231 1.24 0.214 1 19
Traditional stove+LPG+Kerosene (not
Stove . estimable)
(not
Traditional stove+LPG+Induction . estimable)

Note: dy/dx for factor levels is the discrete change from the base level.

xix
Annexure 5: Segmentation & Target Market Identification:-K-Means Clustering
Output
ANOVA- 2 Clusters

Cluster Error
Mean Mean
Square df Square df F Sig.
Low_Smoke 6.194 1 .496 1883 12.497 .000

Less_Wood_Consumption .310 1 .413 1883 .750 .387

Portable 732.159 1 .376 1883 1948.679 .000

Anti_Rust 1239.938 1 .518 1883 2392.253 0.000

ANOVA- 3 Clusters
Cluster Error
Mean Mean
Square df Square df F Sig.
Low_Smoke 113.837 2 .378 1882 300.970 .000

Less_Wood_Consumption .398 2 .413 1882 .962 .382

Portable 386.826 2 .354 1882 1093.123 0.000

Anti_Rust 743.868 2 .387 1882 1922.529 0.000

ANOVA- 4 Clusters
Cluster Error
Mean Mean
Square df Square df F Sig.
Low_Smoke 130.539 3 .291 1881 448.159 .000

Less_Wood_Consumption 2.827 3 .409 1881 6.904 .000

Portable 270.539 3 .334 1881 810.294 0.000

Anti_Rust 589.507 3 .238 1881 2478.452 0.000

xx
 ANOVA- 5 Clusters

Cluster Error
Mean Mean
Square df Square df F Sig.
Low_Smoke 58.797 4 .375 1880 156.944 .000

Less_Wood_Consumption 36.173 4 .337 1880 107.290 .000

Portable 191.708 4 .358 1880 535.678 0.000

Anti_Rust 436.982 4 .249 1880 1755.412 0.000

ANOVA- 6 Clusters
Cluster Error
Mean Mean
Square df Square df F Sig.
Low_Smoke 135.667 5 .139 1879 976.053 0.000

Less_Wood_Consumption 19.543 5 .362 1879 53.937 .000

Portable 185.165 5 .273 1879 677.136 0.000

Anti_Rust 324.152 5 .317 1879 1023.379 0.000

ANOVA- 7 Clusters
Cluster Error
Mean Mean
Square df Square df F Sig.
Low_Smoke 79.711 6 .246 1878 324.550 .000

Less_Wood_Consumption 47.624 6 .262 1878 181.487 .000

Portable 164.359 6 .241 1878 680.647 0.000

Anti_Rust 288.945 6 .257 1878 1125.221 0.000

ANOVA- 8 Clusters
Cluster Error
Mean Mean
Square df Square df F Sig.
Low_Smoke 75.299 7 .220 1877 342.706 0.000

Less_Wood_Consumption 42.811 7 .255 1877 167.804 .000

Portable 140.015 7 .245 1877 571.899 0.000

Anti_Rust 243.587 7 .272 1877 895.063 0.000

xxi
 Variance Ratio Criterion & Omega value calculation

Low_Smok Less_Wood Portabl Anti_Ru Variance Omega

No. Of e _ e st Ratio
cluster Consumptio Criterion
s n
1948.67
2 12.49661 0.74968 9 2392.253 4354.17908
1093.12
3 300.9702 0.962174 3 1922.529 3317.58435 1462.819394

810.293
4 448.1593 6.904431 8 2478.452 3743.809014 -1614.709905
535.678
5 156.9438 107.2903 1 1755.412 2555.323774 1363.666406
677.136
6 976.0527 53.93659 2 1023.379 2730.50494 -593.7823737
680.646
7 324.5495 181.4867 6 1125.221 2311.903732 84.16925802
571.899
8 342.706 167.8038 1 895.0629 1977.471782 609.3090717

Number of Cases in each Cluster

Cluster 1 278.000

2 634.000
3 235.000
4 738.000
Valid 1885.000
Missing 0.000

Final Cluster Centers for Number of clusters=4

Cluster

1 2 3 4
Less_Wood_Consumption 4.49 4.34 4.33 4.47

Low_Smoke 3.37 4.52 4.42 4.75

Portable 4.20 2.89 4.37 4.28
Anti_Rust 2.01 1.38 4.44 2.75

xxii
Annexure 6: Segmentation & Target Market Identification: Profiling Output
Age

Age (Binned) 20-30 24

30-42 82

42-55 71

>55 58

Total 235

Wood Usage/Day

Wood_Usage_Per_Day (Binned) 0-5 53

5-9 122

9-13 53

>13 7

Total 235

Household Type

Cluster 3

Household_Type Kuccah 86

Puccah 149

Total 235

BPL Status

Cluster 3

BPL_Status Yes 98

No 137

xxiii
Total 235

Cook-Stove Type

Cluster 3

cook_Stove_Type Traditional cook-stove 127

Traditional+Kerosene Stove 2

Traditional stove+LPG 105

Traditional stove+LPG+Kerosene 0
Stove

Traditional stove+LPG+Induction 1

Family Size

Cluster 3

Family_Size (Binned) 0-4 115

4-7 97

7-10 21

>10 2

Total 235

Education

Cluster 3

Education (Binned) 0-4 60

4-9 111

10-12 49

Graduate 15

Total 235

Occupation

Cluster 3

xxiv
Occupation Agriculture 71

Agriculture+Animal Husbandry 11

Agricultural Labour 17

Job 67

Business 10

Business+Labour 0

Job+agriculture 2

Job+Labour 4

Labour 48

Total 235

xxv