Exploring the Local Market for Uplifting Sri Lankan Tea Industry: A Case of Local Tea Consumers

Dhilushi S. Dharmathilake, Pathmanathan Sivashankar, Maheshwari Elapata, Rohana P. Mahaliyanaarachchi

Abstract: Sri Lankan tea industry has been mainly focused on the international market from its inception. Still sufficient attention is not paid to develop the local tea market within Sri Lanka. As there is a great potential to develop the local tea market with growing local economy and middle income consumer base, the objective of the study was to assess the consumer buying behavior of tea among the locals, expecting to identify avenues to develop the local market. One hundred and twenty respondents from Kegalle district of, Sri Lanka were surveyed with interviewer directed questionnaires. The effect of demographic factors on making purchase decisions and buying behaviors were analyzed by Chi square test and Spearman correlation test. It revealed that majority of local consumers regardless of their demographic factors consider “quality” as the major factor when making purchase decision. There were three significant relationships including income level vs. buying place, income level vs. brand consciousness and living sector vs. buying place. Therefore, the local tea market can be successfully segmented according to income levels and locality of consumers. As high end consumers are more conscious on brands, marketers must make strong brand image by accelerating brand promotions at supermarkets from where they buy tea. However, marketers can touch mass market by improving the quality of tea, especially taste. They can try out flavored teas at local tea shops for high end consumers to make it popular as a passion. The study finds avenues for development of local tea industry, which can serve as a buffer when international market is uncertain.

Keywords: buying behavior; consumer; local market; purchasing decision; Sri Lanka; tea

Date published: 2022-02-15