Determinants of Consumer Preference between Loose and Packaged Milk: An Empirical Study in Nalgonda District

Abstract

Milk consumption in India occurs through two parallel channels, namely loose milk supplied through unorganised markets and packaged milk supplied through organised dairy brands. This study examines the determinants of consumer preference between loose and packaged milk in Nalgonda District, with particular attention to food safety awareness, trust in product quality, price sensitivity, usage behaviour, area of residence, and gender. Primary data were collected from 211 household milk consumers through a structured questionnaire. The sample included both urban and rural respondents, allowing comparison of preference patterns across residential groups. The study adopted a quantitative, descriptive, and explanatory design, and the data were analysed using descriptive statistics, correlation analysis, regression analysis, and chi-square testing. The findings show that food safety awareness and trust have a positive association with consumer preference, while usage behaviour emerged as the strongest predictor in the regression model. Price sensitivity had a negative effect on packaged milk preference, indicating that affordability remains important for price-conscious consumers. The chi-square results confirm a significant association between area of residence and milk preference, with urban consumers showing stronger preference for packaged milk and rural consumers showing stronger preference for loose milk. Gender was not found to have a significant association with preference. The study concludes that milk choice is shaped by the combined influence of safety perception, trust, affordability, consumption habits, and residential context.