BUSINESS RESEARCH METHODS PROJECT

ON CONSUMER BUYING BEHAVIOUR TOWARDS ORGANIZED RETAILING

COURSE FACILITATOR: DrP.Sashikala

GROUP MEMBERS RAMA K RAJU NIDHI BATRA KHUSBU JAIN SRISHTI SHAW

ENROLLMENT NO. 11BSPHH010535 11BSPHH010526 11BSPHH011236 11BSPHH010845

SEAT NO. 31 42 16 36

ACKNOWLEDGEMENT

I would like to take this opportunity to thank Dr P. Sashikala maam , IBS Hyderabad, for providing us the opportunity to conduct the research and we thank her for all the support and guidance throughout, let to the successful completion of the project.

ABSTRACT
Organized retailing has been catching up pace very quickly with the advent of FDI in Indian retail segment. With a number of competitors struggling to exist in the market place , a number of companies are trying to understand the consumer buying behaviour .Through this research we have tried to study factors that influence the buying behaviour of the customers of age group 20-30 of customers in organized retail store. We hope the research carried out can be of some help to organized retail sector.

TABLE OF CONTENTS

1. 2. 3. 4. 5. 6. 7. 8. 9.

INTRODUCTION LITERATURE REVIEW OBJECTIVE METHODOLOGY DATA ANALYSIS INFERENCE & PROCESS FLOW ANNEXURE I: QUESTIONNAIRE ANNEXURE II: DEFINITIONS ANNEXURE III: FGD REPORT

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7-19 20 20-21 22-28 29-32 33-34 35 36-37 38

10. BIBLIOGRAPHY

INTRODUCTION
ORGANIZED RETAILINGOrganized retail is nothing but a retail place were all the items are segregated and brought under one roof, unlike the unorganized retail where there are different things are sold in different shops. It also aims to bring maximum of different brands making the same type of product together. The modern organized retail formats recognized today as supermarket or hypermarket concept are largely popular as one stop shopping destination along with entertainment zones as cinema and gaming etc. Hence gaining popularity.

History of Organized Retailing in IndiaRetailing in India is one of the pillars of its economy and accounts for about 15% of its GDP.The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail market in the world, with 1.2 billion people.India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4% of the industry, and these were present only in large urban centres. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population). Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India's central government announced retail reforms for both multi-brand stores and singlebrand stores. The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus. In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership, but imposed the requirement that the single brand retailer source 30% of its goods from India. Indian government continues the hold on retail reforms for multi-brand stores.

Challenges facing the Organized Retail Industry:

The major constraint of the organized retail market in India is the competition from the un-organized sector. Traditional retailing has been deep rooted in India for the past few centuries and enjoys the benefits of low cost structure, mostly owner-operated, therein resulting in less labor costs and little or no taxes to pay. Consumer familiarity with the traditional formats for generations is the greatest advantage to the un-organized sector. On the contrary, organized sector have big expenses like higher labor costs, social security to employees, bigger premises, and taxes to meet. India is now on the radar of global retailers. Accelerated development of retailing industry in the country and building brand value of domestic products is essential not only for marketing our consumer products more efficiently, but also for the development of our own retailing industry.

Literature Review:
Many Literature Reviews were collected related to the project. Following are the topics and the abstracts of the research done on the retail organised sector:

1) Indian Retail Market Embracing a new trajectory-Deloitte;September 2011 Abstract The Indian retail market currently stands at USD 396 billion and is likely to grow further at 12% to increase to USD 574 billion by 2015. This sector is the second largest employer after agriculture, employing more than 35 million people with wholesale trade generating an additional employment to 5.50 million more. The growing disposable income in the country is resulting in increasing consumer spending habits. The government is considering in allowing foreign direct investment (FDI) in multi-brand retailing as a measure to make India more attractive to overseas investors. The proposal, piloted by the Department of Industrial Policy and Promotion (DIPP), is currently at the discussion stage and is awaiting government clearance. Emergence of organized retail: Real estate development in the country, for example, the construction of mega malls and shopping malls, is augmenting the growth of the organized retail business The food and grocery segment is the highest contributor to the retail sector (60%) with minimum penetration of organized retailing. Penetration of modern retail is maximum (23%) in the clothing and fashion segment, which is 10% of the total retail sector. Besides, organized retail in beauty, wellness and electronics through specialty stores is growing at a rapid pace

2) Indian Retail: Time to change lanes KPMG IN INDIA Abstract The Indian Retail sector has caught the worlds imagination in the last few years.Topping the list of most attractive retail destination list for three years in a row, it had retail giants like Wal-Mart,Carrefour and Tesco sizing up potential partners and Waiting to enter the fray.Indias retail growth was largely driven by increasing disposable incomes,favourable demographics, changing lifestyles, growth of the middle class segment And a high potential for penetration into urban and rural markets. However, with the onset of the global financial crisis, Indian retailers have been suffering from the effects of rapid credit squeeze, high operating costs and low customer confidence.The impact of current slowdown in Indian retail sector is summarized along key Operating parameters as follows: There was a positive impact in case of Cost competitiveness,Real Estate availaibilty,
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Real Estate Cost and Tier 2 or 3 expansion; Adverse impact on Footfall,Stock turn ,Store expansions,working capital availability,cost of finance,advertising cost etc. and strategies to cope with regression.

3) Research on India organised Retail Market-Diagnosis and outlook by Knight Frank Abstract In the initial years of the current decade, the Indian economy witnessed a sub 5 per cent annual growth rate and as a result, the private consumption expenditure and retail sales clocked an annual average growth rate of only 4 per cent and 4.8 per cent respectively during 2000-01 to 2002-03. However, there was a smart pick up of the economy during 2003-4 to 2007-08 and the average annual GDP growth rate was recorded at 8.9 per cent. Once the economy attained high momentum, the Indian retail trade witnessed a robust growth of around 11 per cent during this period. The upsurge witnessed during 2003 to 2007 was contained during the last two years because of the economic meltdown. Of late, signs of economic recovery are observed which is likely to put the retail trade in India again on a reasonably high growth trajectory. During 2010-12, 55 mn.sq.ft.of retail space will be ready in 7 major cities Between 2010 and 2012, the organised retail real estate stock will more than double from the existing 41 mn.sq.ft. to 95 mn.sq.ft. About 20% or 8 mn.sq.ft. of Mall space is vacant in 7 major cities During 2009-12, while the Organised Retail Market (ORM) will increase to 2.25 times, the Real Estate Retail Potential (RERP) will increase at a higher pace to 2.91 times Between 201012, a higher pace of real estate development in comparison to the pace of organised retail market growth, will create an oversupply situation to the magnitude of 21 mn.sq.ft. in 2012 in 7 cities like Mumbai, Pune, Hyderabad, Delhi, Kolkata, Bengaluru and Chennai . The state of affairs of the retail real estate market implies that the frenetic rental hikes witnessed during the boom period will not haunt retailersatleast until 2012.

4) Retail industry in India Abstract The Indian Retail sector is devided in to organised and unorganised sector.Organised retailers are registered and taxed. These include hypermaerkets and chain retail outlets .Unorganised on the other hand is tradiotional low cost retail.Retail industry has made 30-35 percent of Indias GDP and the government intends to promote it.A study of the different retail sectors have been done and a look into it merger and acquisitions has been taken. The competiotin among the retailors has been overviewed extending it to the investments and business models developed in the Indian .Market.This also gives an insight into the opportunities and challenges in the retail sector.

5) Supply Chain Management: A comparative study between large organized food and grocery retailers in india-Joy Mukhopadhyay* Abstract India is going through a retail revolution. All the big business houses are entering this Sector and it is growing at a very past pace. International giants in this sector like Wal- Mart, Tesco and Carefour are also trying to enter the Indian market. Retail is offering Tremendous opportunities in employment. However, our country also poses a big challenge to organized large retailers particularly in food sector. Food being perishable item, for the retailer to be successful the key is proper supply chain management. The challenge comes from a number of factors, e.g. huge size and population of our country, varied culture and hence varied taste, very poor infrastructure like improper roads, bad connectivity between production centers and markets, lack of proper cold chain facility like refrigerated transportation, ware-housing etc. Under these circumstances it isinteresting to find out how large organised retailers are coping up with these problems. In thispaper a comparative study is made in supply chain management adopted by different players in food and grocery segments.

6) Indian food retail sector in the global scenario -Vijay Anand&VikramNambiar Abstract
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The latter half of the 20 Century, in both Europe and North America, has seen the emergence of the supermarket as the dominant grocery retail form. The reasons why supermarkets have come to dominate food retailing are not hard to find.On the Global Retail Stage, little has remained the same over the last decade. One of the few similarities with today is that Wal-Mart was ranked the top retailer in the world then and it still holds that distinction. Other than Wal-Marts dominance, theres little about todays environment that looks like the mid-1990s. The global economy has changed, consumer demand has shifted, and retailers operating systems today are infused with far more technology than was the case six years ago.India has been rather slow in joining the Organized Retail Revolution that was rapidly transforming the economies in the other Asian Tigers. This was largely due to the excellent food retailing system that was established by the kirana(mom-and-pop) stores that continue meet with all the requirements of retail requirements albeit without the convenience of the shopping as provided by the retail chains; and also due to the highly fragmented food supply chain that is cloaked with several intermediaries (from farm processor-distributor-retailer) resulting in huge value loss and high costs.Organized retailing is spreading and making its presence felt in different parts of the country. The trend in grocery retailing, however, has been slightly different with a growth concentration in the South. The Indian food retail market is characterized by several co-existing types and formats. These are the road side hawkers and the mobile (pushcart variety) retailers. The kiranastores (the Indian equivalent of the mom-and-

pop stores of the US), within which are: a. Open format more organized outlets b. Small to medium food retail outlets. The project also gives an insight in to social and economical trends and retail outlets present in India. 7) Human Resource and Skill Requirements in the Organised Retail sector Abstract The Indian retail market has been ranked the second most attractive emerging market for investment after Vietnam1. The Indian retail industry is estimated to be worth Rs 13-14 lakh crore in FY 20082 . The Indian retail sector is highly fragmented in nature. The penetration of Organised Retail in the Indian market is much below the levels in other countries. Organised/Modern retailing refers to trading activities undertaken by licensed retailers and includes formats such as hypermarkets and supermarkets, and retail chains.Organised Retail, valued at Rs 96,500 crore in 2008, accounts for around 5% of the total retail market.Organised Retail has been growing at an impressive rate of 35% to 40% Y-O-Y in the last few years compared to 9-10% growth in the overall retail industry.Traditional/unorganised retailing contributes to about 95% of total retail revenues.Traditional/unorganised retailing which involves the local kirana shops, paan /beedi shops, hand cartand pavement vendors, etc. continues to be the backbone of the Indian retail industry. India has one ofthe highest densities of shops per population with 1.5 crore4 small retail outlets in India (14 shops per1,000 people).This repert also gives an insight into consumtion categories and the role of the organised sector. 8) Organized Retail Inquilab in India STVP-2007-002;June 12, 2007 Abstract This paper lays out before the reader the state of the Indian retail sector at a moment in time when it is in great flux. Almost every two months we see big corporations who had previously shied away from theretail industry, announcing huge investments into the sector. Companies already in the market are coming up with new formats almost every quarter. Coupled with the economy growing in leaps and bounds and the government at the center obliging with favorable policies, the retail sector is a bus no one wants to miss in India. However, to succeed in India requires knowing whats on the mind of the Indian consumer, what works for him and what does not, and understanding that global products and pricing need to be customized to fit with the local scheme of things. Without having a strategy in place for the Indian consumer market in place, foreign retails would find it tough to compete with the local organized retailers and the mom and pop shops; local retailers with their recent entry into the market should try to leverage their knowledge of the consumers and experiment with formats to see how they can capture the maximum market share. In the few years to come, it would be interesting to see who comes out on top and what the winning strategy is, and also why the strategy succeeded and others failed.

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9) Would Indian consumers move from kirana stores to organized retailers when shopping for groceries?ParomitaGoswamiXavier Institute of Management, Bhubaneswar, India, Mridula S. MishraICFAI Business School, Kolkata, India Abstract Purpose This article seeks to understand whether Indian consumers are likely to move from traditionalkirana stores to large organized retailers while shopping for groceries. Design/methodology/approach Two hypotheses were proposed: H1: customer patronage differs for different grocery store attributes and H2: customer perceptions of grocery store attributes differ for kirana stores and organized retailers. The study was carried out across four Indian cities- two major and two smaller cities with around 100 respondents from each city. Stratified systematic sampling design with a sample size of 409 was used for the study. Multivariate statistical techniques were used to analyze the data collected with the help of a structured questionnaire. Findings Customer patronage to grocery stores was found to be positively related to location,helpful, trustworthy salespeople, home shopping, cleanliness, offers, quality and negatively related to travel convenience. Kiranas do well on location but poorly on cleanliness, offers, quality, and helpful trustworthy salespeople. The converse is true for organized retailers. Research limitations/implications Kiranas have major disadvantages on all customer perception scores except location. These scores being less important determinants of patronage compared with location, in the short run kiranas may not be ousted out of customers favour. However, in the long run if they do not work on these other factors, they would face oblivion. Practical implications Kiranas need to upgrade their facilities to be able to compete with the organized retailers, who are expected to improve their location scores rapidly in the near future. Originality/value The paper predicts whether the foray of large organized grocery retailing would close down millions of kirana shops and result in loss of livelihood, suggesting measures to counter the onslaught.

10) Indian Retail Industry Abstract The Indian retail industry is the fifth largest in the world. Comprising of organized and unorganized sectors, India retail industry is one of the fastest growing industries in India, especially over the last few years. Though initially, the retail industry in India was mostly unorganized, however with the change of tastes and preferences
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of the consumers, the industry is getting more popular these days and getting organized as well. With growing market demand, the industry is expected to grow at a pace of 25-30% annually. The India retail industry is expected to grow from ` 35,000 crore in 2004-05 to ` 109,000 crore by the year 2010.In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non- branded items. It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion. The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the consumer spending has also gone up and is also expected to go up further in the future. In the last four year, the consumer spending in India climbed up to 75%. As a result, the India retail industry is expected to grow further in the future days. By the year 2013, the organized sector is also expected to grow at a CAGR of 40%.India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort. 13) Indian Organized Retail Sectors Impact on Life styles Abstract The Indian organized retail sector's impact changed the lifestyle of the Indian consumers drastically. The evident increase in consumerist activity is colossal which has already chipped out a money making recess for the Indian organized retail sector. With the onset of a globalized economy in India, the Indian consumer's psyche has been changed. People have become aware of the value of money. Nowadays the Indian consumers are well versed with the concepts about quality of products & services. These demands are the visible impacts of the Indian organized retail sector. Since the liberalization policy of 1990, theIndian economy, and its consumers are getting whiff of the latest national & international products, the with help of print & electronic media. The social changes with the rapid economic growth due to trained personnels, fast modernization, enhanced availableness of retail space is the positive effects of liberalization. The non-food sector, segments comprising apparel, accessories, fashion, lifestyle felt the significant change with the emergence of new stores formats like convenience stores, mini marts, mini supermarkets, large supermarkets, and hyper marts. Even food retailing has became an important retail business in the national arena, with large
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format retail stores, establishing stores all over India. With the entry of packaged foods like MTR, ITC Ashirbad, fast foods chains like McDonald's, KFC, beverage parlors like Nescafe, Tata Tea, Caf Coffee and Barista,the Indian food habits has been altered.

India will be an unique business arena in whole of the global economy, for the social and economic parameters would overrule the big bang of the vivid competition. Previously mastered by the unorganized retail sector, India opened up late as an economy in 1990 until then the idea of retail formats were spread by the government. 14) Marketing in India-Organized Retail - Impact on Kirana and trade;Sunday, August 5, 2007 Abstract India is called a nation of shop keepers and organized retail which has just made an entry has a very small share estimated between 2-4% of total retail in the country. The entry of major retailers in the country has raised passions among the politicians, policy makers and smaller retailers that the presence of bigger organized retailers would lead to the elimination of the smaller shop keepers leading to a large scale problem of unemployment and maybe even social problems. There have been many opinions and debates going on in orkut communities, newspapers on the pros and cons of entry of organized retail in the country. The government had asked in February for study to be done on the impact that organized retail on the neighborhood mom-n-pop (or kirana) stores, and the latest news is that they are unhappy with the interim findings and have asked for a larger base for retail study. Added to his is the protest raised by the Kerala Distributors Association with major FMCG companies on bypassing them and selling their products directly to the large retail stores. The concern expressed is that if the companies start supplying directly to major retailers with a price difference then it would eventually lead to the death of the small and medium traders in the business. The national body of distributors the Federation of All India Distributors Association has expressed their support to the Kerala Distributors protest and is planning for a nation widestir.The issue which the entry of organized retail ( at a real big scale) is raising is, will the small mom-n-pop (or Kirana) store disappear from the landscape of Indian retail and would be dominated by Wal-Mart- Bharti's , Reliance and Bigbazzars? If this were to happen, which I feel is highly unlikely, it would have wide-spread implications for the Indian society as a whole. I say it wouldnt happen because I have immense faith in the entrepreneurial spirit of the small entrepreneurs in the country; they will find ways and means of surviving the onslaught of the Wal-Marts and Reliance and would find themselves profitable niches to operate in. Yes, but the structure of the retail in the country would change for sure as the proportion of organized retail increases it would lead to reduction in the number of smaller shops. And these small mom-n-pop stores wouldnt mind a helping hand from the government which would have to play a more

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proactive role in working out schemes and be ready to face the fall out of the impact of organized retail in smaller retailer. 15) Indian Retail - The Road Ahead : Janat Shah Abstract Indian retail differs from the US retail industry in concepts like MRP, wider price points and a low cost distribution system. Organized retail is fast gaining space in the mind of the Indian consumer, but leaves a lot to be desired when it comes to operational efficiencies. Indian retailers must not look at blindly copying the US model but must focus on shoring up efficiencies, both at the front and the back end and building leverages on private labels and branded products. The state also needs to play a proactive role in terms of providing proper infrastructure and minimizing tariffs. With these measures in place, the Indian retail industry could be poised for the next quantum leap.

16) Gender Identity in Consumer Behavior Research: A Literature Review and Research Agenda Abstract Consumer researchers have been examining the impact of gender identitythe degree to which an individual identifies with masculine and feminine personality traitson various consumer variables for nearly four decades. However, significant gender identity findings in consumer research have been rare, perhaps because of (1) operationalization problems , (2) inappropriate interpretation and application of gender identity to consumer variables , or (3) blurring gender categories (Firat 1993). This paper presents a thorough review, grounded in theoretical models of gender identity, of consumer behavior studies in the marketing literature that have examined gender identity. Based on the literature review, the paper evaluates whether gender identity research is still warranted, andproposes specific research questions to guide future research. 17) Strategies for building a better brand image: acase of cola rivals in the :Pakistani context Abstract A brand is a transforming idea that converts something intangible into something of value. A firmsbrand image is continually evolving. As it enters new countries or markets, new brand extensions orproduct lines are added. Also new features in product and positioning may be modified or radicallychanged. With rising media, promotional costs and the trend towards globalization, brand image isperceived differently across different cultures. In the competitive markets it is imperative that companyis able to

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narrate the brand identity by building a strong brand image. A company can follow number of strategies to create a better brand image. Ultimately the way consumers associate themselves with thebrand would determine its success. 18) Retailing in the emerging business environment: a study of consumer perceptions towards store image, store patronage & store loyalty in the garhwal region of uttrakhandstate:DR. D.S. Chaubey Abstract The retail sector in India is witnessing a huge revamping exercise as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Retail is Indias largest industry, accounting for over 10 per cent of the countrys GDP and around eight per cent of the employment.. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. Western-style malls have begun appearing in metros and second-rung cities alike introducing the Indian consumer to a shopping experience like never before. Indias vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Therefore, it is imperative to study the consumers perception towards various retail format. The present paper is an attempt to identify the consumer perception and their behaviour toward store image, store patronage & store loyalty in the garhwal region of uttrakhand state.. With the formation of new state of Uttrakhand, the business opportunities have increased in many folds. Research also indicates that originality of the product was given highest preference by the respondents and they believe that retail showroom offers original product .it was followed by the availability of the product in large variety. The relationship and services offered by the retailer has emerged as another important issues which were given due consideration and scored better in their preference list. The importance of recognition of consumers value system and the discount offered by the retailer are another important factor which respondent has considered in selecting the retail showroom 19) The Role of Point of Purchase in Shopping Behavior in An Emerging Market-The Indian Context: S.Ramesh Kumar, Rajeev Ravi, Jeevish Jain

Abstract As India moves into modern retailing with several changes with regard to its markets, bands and consumers there are unique challenges that a multinational company entering India has to cope up with, whether it is a fast moving consumer goods (FMCG) company or a multinational retail chain like Tesco or Wal-Mart. There are unique retailing aspects that need to be studied in detail by these companies. While the world over the retail density (number of shops per 1000 consumers) is on the decline, the retail density in India is on the increase. This is because of the fact that small neighbourhood shops called kirana shops about eleven million in India.
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They have been a part of the Indian shopping culture for several decades and even toady organized retailing (modern retail outlets) contribute just 2-3% of the total retail sale in the country. Point of Purchase (POP) materials are used both by kirana shops and by organized supermarket retail outlets. This study investigates the impact of POP materials on kirana shop purchases and the purchases of consumers from supermarkets. Given the importance of POP material on the purchase of FMCG purchases, the authors feel that this study will be useful to bridge the gap between theory and practice and will provide valuable insights to managers involved in retailing

20) Visual Merchandise and Store Design Strategies of Specialty Retail Stores :RoopampreetKaur, GagandeepBanga, Abstract Visual Merchandise (VM) and Store Design strategies are the two key components of retailing that draw the customer in the store. In this study an attempt has been made to study visual merchandise and store design strategies followed by Specialty Retail Stores. Specialty apparel stores from Ludhiana and Chandigarh were selected for the survey because these stores have a significant presence in both cities. Twenty specialty apparel stores were selected on judgment basis, ten from each city. Visual merchandise and store designing concepts are gaining more and more importance. Colour and season is the main theme of the display window design but the display window is not changed frequently. Lighting is mainly used for illumination rather than for creating an atmosphere conducive for buying. Babita Kumar, SandeepKapur, S.K. Singla

21) Changing Consumer Behaviour and Emerging Challenges to the Retail Trade In India Abstract The sustained and rapid growth of China and India, which together provide home to over a fifth of the humanity, are creating a tremendous surge in consumerism on a scale which is unprecedented. Both the countries are attractive destinations for investment and production as well as sales and marketing. Yet, EIU Survey on corporate priorities for 2007 and beyond suggest that more than a quarter of the CEOs believe that lack of customer insight is a barrier to growth in the emerging economies: Although the differences between the developed and developing worlds are eroding, the survey makes it clear that they are still very distinct business landscapes. In the developed markets, executives point to high labour costs and saturated markets as the critical challenges. Innovation is a priority respondents primarily look to drive revenue growth by selling new products to existing customers. In emerging markets, by contrast, the headaches are quite different. Labour costs are low and markets are largely untapped. Executives are focused instead on managing shortages of local talent and plan to grow mainly by selling existing products to new customers.
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22)Retail Head Start - Choosing The Right Location : MadhumitaMohanty Abstract Any Retailer or aspiring Retailer would have heard of the 3 critical elements needed. Choosing a store location is like choosing a location for your house. When a person decides to buy or build a house, she goes through several decision variables. The same set comes in handy while choosing a Retail location. You can be the best Retailer in the world, but if you set your shop in the wrong location, chances of a successful business are lessened considerably. Starting off with the wrong location is like running with your hands tied behind your back.

23) Consumerbehavior towards organised retail stores A study at selected outlets at Andhra Pradesh : Dr.K.Raji Reddy and Osman bin salam Abstract The lifestyle and profile of the Indian consumer is going through a rapid transformation. The population of India is young, energetic and full of enthusiasm. 50% of the Indian population is under the age of 25. There has been a transition from price consideration to quality and design, as the focus of the customer has changed. The upper and middle- class population of today needs a feel good experience even if they have to spend a little more for that. People are moving towards luxury and want to experiment with fashion and technology. 24) ConsumerBehavior In Organized Retail Abstract A comparative study of consumer satisfaction towards the service rendered by Organized and Unorganized retail sector in IndiaThe word retail means to sell or be sold directly to individuals. Retail is Indias largest industry, and arguably the one with the most impact on the population. It is the countrys largest source of employment after agriculture, has the deepest penetration to rural India,Retailing is one of the pillars of the economy in India and accounts for 13% of GDP. The retail industry is divided into organised and unorganised sectors. Over 12 million outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m2) in size.Unorganized retailing, refers to the traditional formats of low-cost retailing, for example, hand cart and pavement vendors, & mobile vendors, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hardware shop at the corner of your street selling everything

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25) Customer expectations of store attributes: A study of organized retail outlets in India:Piyali Ghosh, Vibhuti Tripathi and Anil Kumar Abstract The phenomenal growth of retail in India is reflected in the rapid increase in number of supermarkets, departmental stores and hypermarkets in the country. However, this unprecented growth trend has been challenged by the shadow of the current economic slowdown, which has raised a fear of dip in consumption and slowdown of growth for Indian organized retailers. At a time when consumer spending is on decline, success will lie with those retailers that can drive customer loyalty by responding to the demands of the discerning consumer. This study is an attempt to address issues related to store attributes and their relevance in the store selection process. Eleven variables (store attributes) have been identified in this article based on theory and judgment. Factor analysis has yielded three factors: Convenience & Merchandise Mix, Store Atmospherics and Services. The factors identified and recommendations made in the article would be of use to retailers in designing their outlets with store attributes that would meet the expectations of shoppers and thus motivate them towards store patronage decisions.
26) Retail restructuring and consumer choice 1. Long-term local changes in consumer behaviour:

Portsmouth, 1980 2002:Ian Clarke, Alan Hallsworth, Peter Jackson, Ronan de Kervenoael, Rossana Perez del Aguila, Malcolm Kirkup;Received 29 June 2004; in revised form 22 November 2004 Abstract Over the last two decades fundamental changes have taken place in the global supply and local structure of provision of British food retailing. Consumer lifestyles have also changed markedly. Despite some important studies of local interactions between new retail developments and consumers, we argue in this paper that there is a critical need to gauge the cumulative effects of these changes on consumer behaviour over longer periods. In this, the first of two papers, we present the main findings of a study of the effects of long-term retail change on consumers at the local level. We provide in this paper an overview of the changing geography of retail provision and patterns of consumption at the local level. We contextualise the Portsmouth study area as a locality that typifies national changes in retail provision and consumer lifestyles; outline the main findings of two large-scale surveys of food shopping behaviour carried out in 1980 and 2002; and reveal the impacts of retail restructuring on consumer behaviour. We focus in particular on choice between stores at the local level and end by problematising our understanding of how consumers experience choice, emphasising the need for qualitative research. This issue is then dealt with in our complementary second paper, which explores choice within stores and how this relates to the broader spatial context.
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27) Retail restructuring and consumer choice 2. Understanding consumer choice at the household level:Peter Jackson, Rossana Perez del Aguila, Ian Clarke, Alan Hallsworth, Ronan de Kervenoael, Malcolm Kirkup;Received 29 June 2004; in revised form 22 November 2004 Abstract This paper complements the preceding one by Clarke et al, which looked at the long-term impact of retail restructuring on consumer choice at the local level. Whereas the previous paper was based on quantitative evidence from survey research, this paper draws on the qualitative phases of the same three-year study, and in it we aim to understand how the changing forms of retail provision are experienced at the neighbourhood and household level. The empirical material is drawn from focus groups, accompanied shopping trips, diaries, interviews, and kitchen visits with eight households in two contrasting neighbourhoods in the Portsmouth area. The data demonstrate that consumer choice involves judgments of taste, quality, and value as well as more objective questions of convenience, price, and accessibility. These judgments are related to households differential levels of cultural capital and involve ethical and moral considerations as well as more mundane considerations of practical utility. Our evidence suggests that many of the terms that are conventionally advanced as explanations of consumer choice (such as convenience, value, and habit) have very different meanings according to different household circumstances. To understand these meanings requires us to relate consumers at-store behaviour to the domestic context in which their consumption choices are embedded. Bringing theories of practice to bear on the nature of consumer choice, our research demonstrates that consumer choice between stores can be understood in terms of accessibility and convenience, whereas choice within stores involves notions of value, price, and quality. We also demonstrate that choice between and within stores is strongly mediated by consumers household contexts, reflecting the extent to which shopping practices are embedded within consumers domestic routines and complex everyday lives. The paper concludes with a summary of the overall findings of the project, and with a discussion of the practical and theoretical implications of the study.

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OBJECTIVE: The research is aimed at studying the buying behaviour of consumers in the age group of 2030 towards organized retailing.

RESEARCH METHODOLOGY:
Research is a process of collecting, analyzing and interpreting information to answer questions. But to qualify as research, the process must have certain characteristics: it must, as far as possible, be controlled, rigorous, systematic, valid and verifiable, empirical and critical. Steps in Research Process: 1. Formulating the Research Problem 2. Extensive Literature Review 3. Developing the objectives 4. Preparing the Research Design including Sample Design 5. Collecting the Data 6. Analysis of Data 7. Generalization and Interpretation 8. Preparation of the Report or Presentation of Results-Formal write ups of conclusions reached.

QUESTIONNAIRE DESIGN The final questionnaire evolved after many stages of reformulating and restructuring. A pilot test was conducted with a sample of 30 respondents prior to conducting the actual interviews. This was done to mainly to test the language of the questionnaire and know whether the respondents interpreted the question as intended. Errors and Confusing words were modified and certain explanations were added. A copy of the final questionnaire has been attached as an annexure to the report.

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LIMITATIONS
The following limitations were observed during the course of the research; The Sample of respondents chosen was not a random sample and limited only to the students of IBS, Hyderabad. Lack of enthusiasm on the part of the respondents to answer the questionnaire.

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RESEARCH PROCESS- DATA ANALYSIS:

As a part of Reaearch methodology , the following steps were followed-

Stage I
Exploratory research: Focus group interview was conducted to determine the variables that effect the dependent variable (customer satisfaction).Details of the FGD (FGD Report) are enclosed as annexure I.

Stage II
Survey: Questionnaire A questionnaire of 25 questions (24independent + 1 dependent) was designed based on the variables derived from the FGD. One pilot question to arrive at the questions is also included. Questionnaire enclosed as annexure 2.

Scale Unforced Likert scale ranging from 1(Strongly Agree) - 7(Strongly Disagree) is used.

Sample Simple random sampling technique was used and initially survey was conducted on a sample of 31 respondents for the Pretest of the questionnaire. Further the actual survey was conducted on 170 respondents.

Stage III
Pretest: Pretest of the questionnaire was conducted on a sample of 30 respondents to determine the consistency and reliability of the questionnaire. The cronbachs was 0.892 for the 24 independent variables suggesting that the items have relatively high internal consistency and KMO was 0.823 which shows sample adequacy. The correlation matrix showed good correlation between the items and no negative correlation. This indicated that the

22

questionnaire is accurate and no changes were required and hence we continued with the same questionnaire for the actual survey.

STAGE IV
MAIN SURVEY DATA COLLECTION Survey was conducted on a sample of 170 respondents chosen through simple random sampling. CODING All the responses are coded in an excel sheet using the likert scale codes mentioned in the scale.

STAGE V
DATA ANALYSIS SPSS 13.0 was used for the interpretation of the data. The following results were derived and interpreted:

Cronbachs :
Reliability Statistics

Cronbach's Alpha .892

N of Items 25

The alpha coefficient for the 25 items is .892, suggesting that the items have relatively high internal consistency.

KMO and Bartletts Test:

Kaiser-Meyer-Olkin Sampling Adequacy. Measure of
.823

Bartlett's Test of Approx. Sphericity Square df Sig.

Chi-

1232.376 190 .000

The KMO measure for the 170 respondents was 0.823 which indicates the adequacy of the sample for the survey. The Bartletts test of Sphericity is also significant.
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 Communality Values :
Variables VAR00001 VAR00002 VAR00003 VAR00004 VAR00005 VAR00006 VAR00007 VAR00009 VAR00010 VAR00011 VAR00012 VAR00013 VAR00014 VAR00015 VAR00016 VAR00018 VAR00019 VAR00022 VAR00023 VAR00025 Initial 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .569 .720 .724 .746 .515 .854 .757 .620 .630 .579 .737 .719 .403 .585 .491 .583 .694 .736 .732 .324

All the communality values are above 0.4 except var25.

Rotated Component matrix:

All the items are loaded into six factors. Table enclosed as annexure III.

Component VAR00001 VAR00002 VAR00003 VAR00004 VAR00005 VAR00006 VAR00007 VAR00009 VAR00010 VAR00011 VAR00012 VAR00013 VAR00014 1 .676 .787 .764 .738 .577 2 3 4 5 6

.849 .793 .689 .771 .733 .775 .640

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In

VAR00015 VAR00016 VAR00018 VAR00019 VAR00022 VAR00023 VAR00025

.580 .460 .693 .762 .838 .837 .450

the above Rotated

Component matrix we have removed question number related 17,20,21,24 as the have been influencing two factors at an instance.

Factor I The items included in the Factor I are 1,2,3,4,5,6. On analysis from the questionnaire the items are related to the service, Quality and promotion. Item 1 It is related to discount given in retail store. Item 2-- It is related to ambience present in retail store. Item 3& 4 It is related to Good service quality provided . Item 5- It is related to ease of parking when arrived at store. Item 16 Promotion of products for awareness.
Reliability Statistics Cronbach's Alpha .839

N of Items 6

Factor II The items included in factor II are 11,12,13 and 25. Item 11 It is related to Loyalty program Item 12 It is related to free Home delivery option. Item 13- It is related to Timely Delivery of goods to home Item 25-It is related to employee following customer in store , irritating. . Reliability Statistics
Cronbach's Alpha .683 N of Items 4

Factor III The items included in factor III are 9, 10 , 15 Item 9 It includes Payment options available at the store.
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Item 10 It includes Distance from Home to Store. Item 15 It is related to knowledge of employees
Reliability Statistics Cronbach's Alpha .653

N of Items 3

Factor-IV The items included in the Factor IV are 6,7. On analysis from the Questionnaire the items are related to the variety. Item 6 It is related to wide variety of productsencourages to shop. Item 7 It is related to wide variety of productsencourages to visit again.

Correlations VAR00006 1 170 .692(**) .000 VAR00007 .692(**) .000 170 1

VAR00006

Pearson Correlation Sig. (2-tailed) N

VAR00007

Pearson Correlation Sig. (2-tailed) N

170 170 ** Correlation is significant at the 0.01 level (2-tailed).

Factor-V The items included in the Factor V are 22,23. On analysis from the questionnaire the items are related to play pen. Item 22 It is related to separate play area for kids. Item 23 It is related to someone taking care of your kids while shopping.
Correlations VAR00022 1 170 .529(**) .000 VAR00023 .529(**) .000 170 1

VAR00022

Pearson Correlation Sig. (2-tailed) N

VAR00023

Pearson Correlation Sig. (2-tailed) N

170 170 ** Correlation is significant at the 0.01 level (2-tailed).

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 Factor-VI The items included in the Factor V are 18,19. On analysis from the questionnaire the items are related to Transaction. Item 18 It is related to the exchange policy. Item 19 It is related to the billing process.
Correlations VAR00018 VAR00018 Pearson Correlation Sig. (2-tailed) N VAR00019 Pearson Correlation Sig. (2-tailed) N 170 .357(**) .000 170 170 1 VAR00019 .357(**) .000 170 1

** Correlation is significant at the 0.01 level (2-tailed).

Regression Analysis:
Since the result of Cronbachs alpha is greater than 0.8 we had to use the factor means instead of factor scores for regression analysis. The significant factors in the regression analysis are Quality Promotion. The highest Beta coefficient for Quality Promotion .328, Which indicates that Quality Promotion variable has influence the satisfaction of the consumer buying behaviour. The other variables Convienence and Loyalty has no impact on consumer buying behaviour from below result. Variables like Transaction and PlayPen may have an impact on consumer buying behaviour.
Model Summary Adjusted R Square Std. Error of the Estimate

.501(a) .251 .228 1.02730 a Predictors: (Constant), Transactions, PlayPen, Convenience, Loyalty, Quality Promotion

Model 1

R Square

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ANOVAb Sum of Squares 57.917 173.077 230.994

Model 1

df 5 164 169

Regression Residual Total

Mean Square 11.583 1.055

F 10.976

Sig. .000 a

a. Predictors: (Constant), Transactions, PlayPen, Convenience, Loyalty, QualityPromotion b. Dependent Variable: VAR00024

Coefficientsa Unstandardized Coefficients Model 1 B (Constant) Loyalty Convenience PlayPen Transactions Quality Promotion .470 -.095 .021 .217 .195 .328 Std. Error .314 .078 .082 .059 .074 .099 Standardized Coefficients Beta -.095 .020 .263 .197 .288 t 1.500 -1.207 .250 3.708 2.646 3.330 Sig. .135 .229 .803 .000 .009 .001

a. Dependent Variable: VAR00024

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Inferences :
From the above analysis of the research project , it can be concluded that Major variable that can influence a Consumer buying behaviour while shopping in an organized retail store is Quality Promotion. Quality Promotion in this research is defined having Discounts while shopping, proper ambience in the store, Good service Quality, Better parking place for the store. But the consumers defined here are predominantly people who fall under the age group of 20-30 years of age. Further study is still required as this study is based on the perception of students and student who have recently graduated (in the last 2 years). Although this study does not reflect age, tariffs, profession, these need to be verified by conducting the broader study by considering a wider demographics and geographies.

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Research Methodology ProcessFlow: Consumer buying behavior towards Organized retail store. Research Methodology Process
Start

Objective: Factors effecting Consumer Satisfaction in organized Retail store.

Step 1: Exploratory Research via Focus Group Discussion. Identified nine different variables after brain storming discussion.

Step 2: Questionnaire Design for pretest basing on FGD.comprising of 25 questions(1 dependent + 24 variable)with Likert scale of 1 to 7 starting from strongly Disagree to Strongly Agree respectively

Step 3: Collection of 31 samples and analyzing by coding via scale.

Step4: Cronbach's Alpha of.758 for 25

items. Which shows reliability of pretest. KMO value turns to 0.67. From Correlation Matrix we found that Question number 1,11,24 has to be reframed.

Step 5: Reframing Questionnaire based on step 4. Collection of 170 samples and coding it to excel sheet

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Step 6: From Reliability test we have found Cronbach's Alpha as .89 for 25
variables which is highly reliable .

Step 7: As Dependent variable is continous variable having likert scale of 1 to 7, we have taken Data Reduction through Factor Analysis and identified 6 Factors from Rotational component matrix.

Step 8: Factors having more than 2 variables Cronbach's Alpha is taken and
Factors with 2 variables correlation is taken. After observing we find except Factor 3: Question 9,10,15 from Rotational component matrix is not significant.

Step 9:Naming of Factors. Factor1: question : 1,2,3,4,5,16 as Quality promotion .Factor2: 11,12,13,25 as Loyalty. Factor4:6,7 as Variety.Factor5:22,23.as Playpen. Factor6:18,19 as Transactions.

Step 10: As reliability of data of 170

Cronbach's Alpha is .89 , which above point .8 we take factor mean of each factor.

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Step 11: Multiple regression is done on Dependent and each factor.

Step 12: Analysis shows R square is .25 and out of all the factors most significant factors were QualityPromotion , PlayPen,Transaction.

Step 13: QualityPromotion factor having variables Discount shoping , Ambience , Good service quality, Easy of parking ,and easy exchange policy effects consumer satisfaction in organized retail store

Stop

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Annexure I- FINAL QUESTIONNARIE

Strongly Disagree 1. 2. I will shop more if discounts are given. Ambience is a reason for me to shop in an organized retail store Good service quality leads to better shopping experience. Good service quality encourages me to visit the Store again. Ease of parking increases my number of visits to the store Wide Variety of products encourages me to shop More. Wide Variety of Products encourage me to visit the store again Time taken at the billing affects my shopping Payment options (like credit card, debit card, Cash on delivery) available at the store affect my shopping. Distance from my home affects my shopping. Loyalty points on purchases encourage me to shop more often. Free Home delivery option offer by the store will encourage me to shop from that store. Timely home delivery affects my shopping Promotion of products attracts me to the store. Knowledgably employees enhance my shopping experience. Promotion of products attract me to take advantage of the offers I prefer shopping at stores where my transactions(using credit card, debit card, etc) are secure The exchange policy of the store affects my shopping experience Disagree Some what Disagree Neutral Some what Agree Agree Strongly Agree

3.

4.

5.

6.

7.

8. 9.

10. 11.

12.

13. 14. 15.

16.

17.

18.

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19. I find the store employees following me everywhere to assist, irritating. 20. Transparent billing

process influences my decision to purchase from the store again

21. I am satisfied with shopping experience in organized store. 22. Credit facilities (Monthly EMI, Shop Now Pay Later) given by the store encourages me to shop more. 23. A separate play area for kids in the store influences my preference of a particular store. 24. When I have kids coming with me to shop, I prefer someone taking care of them. 25. I am satisfied with shopping experience in organized store. Thank You for filling my questionnaire .

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Annexure II
CRONBACH'S ALPHA:
Cronbach's (alpha) is a coefficient of reliability. It is commonly used as a measure of the internal consistency or reliability.

Cronbach's is defined as

Where K is the number of components (K-items or testlets), and

the variance of the observed total test scores,

the variance of component i for the current sample of persons.

Cronbach's alpha .9 .9 > .8 .8 > .7 .7 > .6 .6 > .5 .5 > Internal consistency Excellent Good Acceptable Questionable Poor Unacceptable

KAISER-MEYER-OLKIN (KMO) AND BARTLETT'S TEST: The easure of sampling adequacy tests whether the partial correlations among variables are small. Bartlett's test of sphericity tests whether the correlation matrix is an identity matrix. Kaiser-Meyer-Olkin (KMO) : The KMO measures the sampling adequacy which should be greater than 0.5. Large values for the KMO measure indicates that a factor analysis of the variables is a good idea. Bartlett's test of sphericity is used to test the null hypothesis that the variables in the population correlation matrix are uncorrelated.
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Annexure III
FGD REPORT
Objective: To derive the hypothesis for the research Consumer Buying Behaviour towards Organized Retail. Duration: 20 min No. of Male/ Female: Male: 5 Female: 2 Moderator: Team members Minutes: The FGD was conducted on 2 January 2012 at 20 hrs. The respondents were randomly selected MBA students. The objective was to find out the various factors which will affect the buying behaviour of respondents in organized retail store. The FGD was conducted by taking a group of 7 people from age group 20-30. The moderator asked various questions that could determine the behaviour of individuals towards organized retailing. The various factors observed during the FGD are given below. The FGD was driven by various questions such as does the service quality of a particular store increase your shopping experience? Does the parking lot facility encourage you to shop more? ,etc. The respondents came up with answers pertaining to their perception. A list of variables was figured out as followsa) Discounts b) Vareity c) Ambience d) Location e) Parking facility f) Sanitation g) Loyalty program h) Service Quality i) Billing
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The FGD was conducted on 2 January 2012 at 20 hrs. The respondents were randomly selected MBA students. The objective was to find out the various factors which will affect the buying behaviour of respondents in organized retail store. The FGD was conducted by taking a group of 7 people from age group 20-30. The moderator asked various questions that could determine the behaviour of individuals towards organized retailing. The various factors observed during the FGD are given below. The FGD was driven by various questions such as does the service quality of a particular store increase your shopping experience? Does the parking lot facility encourage you to shop more? ,etc. The respondents came up with answers pertaining to their perception. A list of variables was figured out as followsj) Discounts k) Variety l) Ambience m) Location n) Parking facility o) Sanitation p) Loyalty program q) Service Quality r) Billing

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Bibliography
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"Retailing in India Unshackling the chain stores".The Economist. 29 May 2008. Agarwal, Vibhuti; Bahree, Megha (7 December 2011). "India puts retails reforms on hold". The Wall Street Journal.

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"Indian retail: The supermarkets last frontier". The Economist. 3 December 2011.

20. ^ "INDIAN RETAIL INDUSTRY: A Report". CARE Research. March 2011. 21. ^ "Global Powers of Retailing 2011". Deloitte. 2011. 22. ^
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"India's retail reform: No massive rush". The Economist. 2 December 2011.

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Book References:
Marketing Research: A south Asian Perspective by Churchill, Iacobucci, Israel.

Web References:
http://en.wikipedia.org/wiki/M-commerce cs.stanford.edu/people/thathoo/retail.pdf 38

THANK YOU

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