Regression Analysis Results

The following table summarizes the results of the regression analysis, exploring how
demographic variables (Income, Education) impact purchasing behavior as represented by 'Food
Habit' (used as a proxy for purchasing decisions).

OLS Regression Results

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Dep. Variable: Food Habit R-squared: 0.132
Model: OLS Adj. R-squared: 0.090
Method: Least Squares F-statistic: 3.116
Date: Thu, 05 Sep 2024 Prob (F-statistic): 0.0550
Time: 19:38:10 Log-Likelihood: -28.639
No. Observations: 44 AIC: 63.28
Df Residuals: 41 BIC: 68.63
Df Model: 2
Covariance Type: nonrobust
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coef std err t P>|t| [0.025 0.975]
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const -0.1087 0.668 -0.163 0.872 -1.458 1.241
Income 0.0610 0.149 0.409 0.685 -0.240 0.362
Education 0.3441 0.150 2.300 0.027 0.042 0.646
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Omnibus: 18.324 Durbin-Watson: 1.651
Prob(Omnibus): 0.000 Jarque-Bera (JB): 3.655
Skew: -0.193 Prob(JB): 0.161
Kurtosis: 1.642 Cond. No. 46.3
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Variable Coefficient P-Value Significance

 Constant -0.1087 0.8715 Not Significant

Income 0.0610 0.6847 Not Significant

Education 0.3441 0.0266 Significant

The results of the regression analysis provide insights into how income and education influence
purchasing decisions, as reflected by food habits (used as a proxy for purchases of milk-based
processed foods). Here's the interpretation of the results:

Key Findings:

 R-squared: The R-squared value is 0.132, indicating that about 13.2% of the variation in
food habits (proxy for purchases) can be explained by the independent variables (Income
and Education). This suggests that other factors not included in the model may also play a
significant role in influencing purchasing decisions.

 Income: The coefficient for income (0.0610) is positive but not statistically significant
(p-value = 0.685). This indicates that there is no strong evidence that income has a
significant impact on food habits (and by extension, purchasing decisions in this context).

 Education: The coefficient for education (0.3441) is positive and statistically significant
(p-value = 0.027). This suggests that higher education levels are associated with more
frequent purchases of milk-based processed foods (or a preference for diverse food
habits).

Interpretation:

 Education appears to be an important factor in influencing consumer behavior toward

purchasing milk-based processed foods. Consumers with higher education levels are
more likely to make informed decisions based on health, nutrition, and convenience,
which could drive their purchasing habits.

 Income does not seem to have a statistically significant effect in this model. However,
this could be due to the sample size or the specific nature of the data used.

Conclusion:

In the final report, we will focus on how education plays a key role in shaping consumer
purchasing behavior for milk-based processed foods. The insignificant impact of income will be
noted, though additional factors such as price sensitivity or lifestyle preferences may need to be
explored further.
Correlation Analysis Results
This document contains the correlation matrix for the selected demographic variables and their
relationship with purchasing behavior, represented by 'Food Habit' (used as a proxy for
purchasing behavior in milk-based processed foods). The following table shows the correlation
coefficients for Age, Gender, Income, Education, Occupation, and Food Habit.

Correlation Matrix:

Variable Age Gender Income Education Food Habit

Age 1.000 -0.113 0.316 0.088 -0.039

Gender -0.113 1.000 -0.089 -0.132 0.036

Income 0.316 -0.089 1.000 0.033 0.089

Education 0.088 -0.132 0.033 1.000 0.364

Occupation -0.176 -0.012 -0.084 0.304 0.133

Food Habit -0.039 0.036 0.089 0.364 1.000

Interpretation of Correlation Matrix:

The correlation matrix provides insight into the relationships between various demographic
variables and purchasing behavior (proxied by Food Habit). Here's a detailed interpretation of
each correlation:

1. Age and Food Habit (-0.039):

o The correlation between Age and Food Habit is very weak and negative,
suggesting that age has little to no influence on purchasing behavior in this
context. Older or younger consumers do not show significant differences in their
likelihood to purchase milk-based processed foods.

2. Gender and Food Habit (0.036):

o The correlation between Gender and Food Habit is also very weak and positive.
This suggests that gender has almost no impact on the purchasing behavior for
milk-based processed foods. Both males and females exhibit similar behaviors in
their purchasing decisions.
3. Income and Food Habit (0.089):

o There is a weak positive correlation between Income and Food Habit. This
suggests that consumers with higher income levels might have a slight tendency
to purchase more premium or diverse milk-based processed foods, but the
relationship is not strong enough to make this a defining factor in their behavior.

4. Education and Food Habit (0.364):

o The strongest positive correlation observed is between Education and Food

Habit. This indicates that higher levels of education are more closely associated
with greater diversity or preference for milk-based processed foods. Educated
consumers may be more aware of the nutritional benefits or convenience of such
products, driving their purchasing behavior.

5. Occupation and Food Habit (0.133):

o The correlation between Occupation and Food Habit is positive but relatively
weak. This suggests that occupation does play some role in influencing
purchasing behavior, with salaried jobholders or businesspersons possibly
showing more engagement with milk-based processed products, but the effect is
not particularly strong.
Conclusion:

Based on the correlation analysis, the most significant demographic factor influencing purchasing
behavior for milk-based processed foods is Education. Consumers with higher education levels
are more likely to make informed and diverse purchasing decisions in this category.

Income also shows a weak positive correlation with purchasing behavior, suggesting that higher-
income individuals may purchase more premium products, but this relationship is not very strong.

Other demographic factors such as Age, Gender, and Occupation show minimal influence on
purchasing behavior, indicating that these factors are not key determinants in the decision-making
process for buying milk-based processed foods.

Recommendations:
  For Marketers:

o Target educated consumers through campaigns that emphasize the health benefits
and quality of milk-based processed foods. Educational content around nutrition
and convenience could resonate well with this demographic.

 For Retailers:

o Focus on promoting premium or branded milk-based products in locations where

educated consumers are more likely to shop, such as urban or suburban areas
with higher concentrations of professionals.

 For Producers:

o Consider product development that appeals to more educated consumers, such as

products with clear labeling on nutritional benefits or eco-friendly packaging.
Collaborating with healthcare professionals or using educational influencers
could also enhance brand trust.

Most important attributes while purchasing the milk-based product

 Attribute Preferred Number of consumers preferring attribute

Date of Manufacture (expiry date) 42

Brand of the company 36
Nutritional content 31
Price 31
Packaging 17
Certification (Organic, Local, certified by 9
any authorized agency)
Recommendation by the friends 6
Ready availability 4
Advertisement 2
Innovation (New product/flavor) 1
Taste 1

Image 1: Word cloud for most preferred attributes while purchasing milk-based products
 Most important attributes preferred while

No of consumers
purchasing the milk-based product
45
30 42
36
31 31
15
17
0 9 6 4 2 1 1

Purchasing Attributes

Key Attributes Influencing Milk-Based Product Purchases

 Top Factors: Consumers prioritize expiry date, brand trust, and a balance between
nutritional content and price, highlighting safety, quality, and value as primary
concerns.

 Secondary Factors: Packaging and certifications also influence purchasing

decisions, though to a lesser extent.

 Least Influential: Recommendations, availability, advertising, innovation, and taste

have minimal impact on consumer choices.

Overall, safety, brand reputation, and nutrition are the key drivers in the purchasing
behavior of milk-based products.