Dept - Proj. Report

A
RESEARCH REPORT
ON
“A Study on Customer’s Attitude towards Departmental Stores in
Bhilai city”
Submitted in partial fulfillment for the award of the degree
Master Business Administration
Of
Chhattisgarh Swami Vivekanand Technical University, Bhilai
Submitted By:
PRASHANT SONDHIYA
MBA- SEMESTER II
Session 2009-11
Approved By: Guided By:

Mr. Manoj Sharma Mr. Dalvinder Singh Wadhwa
(Reader, SSIPMT )
(Lecturer, MBA Dept.)
Shri Shankaracharya Institute of

Professional Management and Technology
SSIPMT/MBA/PRASHANT SONDHIYA Page 1
Raipur (C.G.) P.O.: Sejabahar, Mujgahan
DECLARATION
I the undersigned solemnly declare that the report of the thesis work
entitled “A study on customer’s attitude towards departmental stores in Bhilai city”
is based on my own work carried out during the course of my study.
I assert that the statements made and conclusions drawn are an outcome of
my research work. I further declare that to the best of my knowledge and belief the report
does not contain any part of any work which has been submitted for the award of MBA
degree or any other degree/diploma/certificate in this university or any other university of
India or abroad.
PRASHANT SONDHIYA
MBA 2nd SEM
Enrollment No.:- AE -7084

CERTIFICATE
This is to certify that the work incorporated in the thesis “A Study on Customer’s Attitude
towards Departmental Stores in Bhilai city” is a record of research work carried out by Prashant
Sondhiya bearing Enrollment No.- AE 7084 Under my/our guidance and supervision for the part
fulfillment for the award of MBA Degree of Chhattisgarh Swami Vivekanand Technical University,
Bhilai (C.G.), India.
To the best of my knowledge and belief the thesis
i) Embodies the work of the candidate him/herself,
ii) Has duly been completed,
iii) Is up to the desired standard both in respect of contents and language for external viva.
Mr. Dalvinder Singh Wadhwa
(Lecturer, SSIPMT)

ACKNOWLEDGEMENT
Completing a task is never one man’s effort; it is often the result of invaluable contribution of no. of
individuals indirect or indirect way in shaping success on achieving it. I use this opportunity to
acknowledge all the help and support I got from the various quarters without which this project
would never have fructification.
I thanks Mr. Yayati Barua for his endeavour, encouragement and invaluable guidance throughout
the project work. I extend my deepest sense of gratitude to Mr. Nitin Jain who is a true mentor,
actively interested in my work and full of suggestions and comments. I am also extremely grateful
for the suggestion and inputs provided by Miss. Sapna Kochhar, Mr. Dalvinder Singh Wadhwa
& Miss Abhilasha at various stages. In short, the direction received from the faculty of our SSIPMT
Raipur was vital and I do not have words to adequately express my gratitude.
I would also like to thank my Team for their efforts and encouragement, and most of all for making
this project a great experience.
I would like to thank our Director, Mr. Nishant Tripathi for his never ending support and
motivation. He make us understand the nitty-gritty’s of a research and for being so kind and
humble to us.
Finally I thank all the respondents, friends and other people for providing their valuable opinion and
helping me in successful completion of the project.
Date:- Prashant Sondhiya
Place:- Raipur MBA II SEM (SSIPMT)

TABLE OF CONTENTS
S.No TOPICS Page No.
.
1. Executive Summary 8
1.1 Background study 11
1.2 Modern Retail Format in India 14
2. Departmental Stores in Bhilai & Raipur 19
3. Literature review 22
3.1 Factors that influence Buyer Behaviour 26
3.2 Key findings till now 29
4. Research methodology 33
4.1 Project Brief 36
4.2 Research Plan 37
4.2.1 Collection of Quantitative Data 37
39
4.2.2 Sampling Process
5. Data Analysis and Interpretation 41
5.1 Demographic Information 42
5.2 Analysis and Interpretation 46
6. Results
6.1 Findings 59
6.2 Recommendations 60
6.3 Limitations 61
6.4 Conclusion 62
7. Bibliography 63
Questionnaire used 64

A Study on Customer’s Attitude towards Departmental Stores in
Bhilai city
______________________________________________________

CHAPTER I

1. EXECUTIVE SUMMARY
Gone are the days were the consumer went in search of materials from shop to shop. Today, things
are made available in one shop, one place. These days, consumer buying is not mere transfer of item
from seller to buyer. Consumer wants buying to become a happy affair. They would like to see,
touch and feel the commodities that they buy. Understanding this psychology for the consumer
many organizations have come to make purchase of happy affair.
India is witnessing an unprecedented consumption boom. The economy is growing between 8 to 10
percent and the resulting improvements in income dynamics along with factors like favorable
demographics and spending patterns are driving the consumption demand. Indian Retail Industry is
ranked among the ten largest retail markets in the world. The attitudinal shift of the Indian consumer
in terms of "Choice Preference", "Value for Money" and the emergence of organized retail formats
have transformed the face of Retailing in India. The Indian retail industry is currently estimated to
be a US$ 200 billion industry and organized Retailing comprises of 3 per cent (or) US$6.4 Billion of
the retail industry. With a growth over 20 percent per annum over the last 5 years, organized
retailing is projected to reach US$ 23 Billion by 2010.
The Indian retail industry though predominantly fragmented through the owner -run " Mom and Pop
outlets" has been witnessing the emergence of a few medium sized Indian Retail chains, namely
Pantaloon Retail, RPG Retail, Shoppers Stop, Westside (Tata Group) and Lifestyle International. In
the last few years, Indians have gone through a dramatic transformation in lifestyle by moving from
traditional spending on food, groceries and clothing to lifestyle categories that deliver better quality

and taste. Modern retailing satisfies rising demand for such goods and services with many players
entering the bandwagon in an attempt to tap greater opportunities.
Driven by demographic changes including rising double digit income levels and a rapidly expanding
middle class, the Indian retailing sector is at an inflexion point where the growth of organized
retailing and growth in the consumption by the Indian population is going towards a higher growth
trajectory. Burgeoning Indian population, particularly the middle class and the rural segments,
presents an opportunity to makers of branded products to convert consumers to branded products.
Retailing in India is at a nascent stage of is evolution, but within a very short time certain trends
similar to global experiences are clearly emerging. Retailing which covered diverse products such as
food, apparels, consumer goods, financial services and lifestyle goods is gradually replacing the
individual small stores with big chain stores.
With shopping attitudes of people changing, organized retail markets today desires for value added
products and services with good ambience and brands, which only a retailer can provide, making
future growth difficult for the small retail sector.
The Indian retailing sector is largely fragmented and hampered by a lack of adequately developed real
estate, a shortage of trained and specialized human capital, weak labor laws, and frail logistics and
supply chain systems.
The Indian retail industry accounting for more than 10% of India's GDP, is likely to be driven by
increasing incomes, growing exposure to overseas markets, increased' lifestyle spending' and higher
mobility.
Also, government has relaxed regulatory controls on foreign direct investment (FDI) considerably in
recent years, while retailing currently remains closed to FDI. However, the Indian government has

indicated in 2005 that liberalization of direct investment in retailing is under active consideration. It
has allowed 51% FDI in “single brand” retail.
The next cycle of change in Indian consumer markets will be the arrival of foreign players in
consumer retailing. Although FDI remains highly restricted in retailing, most companies believe that
will not be for long. Indian companies know Indian markets better, but foreign players will come in
and challenge the locals by sheer cash power, the power to drive down prices. That will be the coming
struggle.
According to the report of American Management Consulting Firm A. T. Kearney's 2006 Global
Retail Development Index (GRDI), India is on the first position , continuing for two years (2005 and
2006), among 30 countries as the world's most attractive market for mass merchant and food
retailers seeking overseas growth. On the other hand, China is loosing its attractiveness and making
the way to India GRDI helps retailers to prioritize their global development strategies by ranking
emerging countries based on a set of 25 variables including economic and political risk, retail market
alternatives, retail saturation level, and the difference between gross domestic product growth and
retail growth. The study quotes: "The Indian retail market is gradually but surely opening up, while
China's market becomes increasingly saturated."

1.1 BACKGROUND STUDY
Background study, as has been mention earlier, forms in important part of our research. Various
books, database and online resources were explored to enhance our understanding of industry, the
company and the pricing concepts.
Department stores are places where you can find everything you need. And by "everything" means
clothes, shoes, perfumes, and even home furnishings. The rise of department stores has made
shopping easier and more convenient for most people. We no longer have to travel far and wide
because these places have materialized everywhere in various countries. And since there are abundant
sources of these shops, searching for the perfect shopping centre has been a tad tricky for the eager
shoppers.
Shopping In Two conduct
Years ago, shopping was a task that can only be completed through personal visits to stores. There
were only a limited number of stores to purchase the people's wants and needs. Shoppers also used to
pay for the merchandise through cash. But today, shopping has become a complex yet easy process
for most people. Because of the rise in the number of department stores and the various ways to shop
for the things you need, shopping has become a simpler task for everyone.

Department store shopping can now be done through personal or online visit. Shopping personally for
the items you need would require you to visit several shops. Many prefer this type of shopping
because they can have a personal view of the items they need.
Regardless of the way people shop, they need to have access to the various department stores nearest
to their areas. And because we deem this essential for your convenience, Department Stores Locally is
providing you access to the best shops situated in UK. Take a peek at the smallest to largest
department stores within your vicinity by browsing this site. You will definitely have ways to contact
the department stores that can provide everything you need.
MARKETING
Marketing is more important as it relates to consumer and their needs, whatever may be the objectives
of business, the main in which it has to concentrate will be marketing. Business today, concentrating
on marketing is found to be fairly successful though success depends on many other factors. The
purchase decision being an essence is an important aspect of marketing. Consumers are liable for
influence under different environment.
Under these circumstances a study has been conducted to analysis the preference of consciences
towards departmental stores. Channel of distribution is also called marketing channel or trade channel,
are used to provide consumer with a convenient means of obtaining the products and services they
desire. Thus, the route or path through which goods more from the place of production to the place of

consumption is called channel to distribution. There are various persons or business consumer such as
middlemen consisting of wholesalers and retailers.
DEPARTMENTAL STORES
A departmental store, a retail trade shop, was started at strategic place to please the customer by
giving him the choice of selecting all that he wants. Every business is based on understanding the
consumer and providing the kind of products that the consumer want every businessman today makes
some effort to convince the consumer for buying a product in a particular shop and for this reason, the
researcher has under taken a survey as to why they prefer departmental store?
What are the reasons for their purchase at a departmental store? What makes them to select
departmental stores? Those other forms of retails outlet in Bhilai city.

1.2 Modern Retail Formats in India
Hypermarket
Typically varying between 50,000 sq. ft. and 1, 00,000 sq. ft., hypermarkets offer a large basket of
products, ranging from grocery, fresh and processed food, beauty and household products, clothing
and appliances, etc. The key players in the segment are: the RPG Group's Giant (Spencer’s)
hypermarkets, and Pantaloon Retail's Big Bazaars.
Cash-and-carry
These are large B2B focused retail formats, buying and selling in bulk for various
commodities. At present, due to legal constraints, in most states they are not able to sell fresh produce
or liquor. Cash-and-carry (C&C) stores are large (more than 75,000 sq. ft.), carry several thousand
stock-keeping units (SKUs) and generally have bulk buying requirements. In India an example of this
is Metro, the Germany-based C&C, which has outlets in Bangalore and Hyderabad.
Department Store
Department stores generally have a large layout with a wide range of merchandise mix, usually in
cohesive categories, such as fashion accessories, gifts and home furnishings, but skewed towards
garments. These stores are focused towards a wider consumer audience catchment, with in-store
services as a primary differentiator. The department stores usually have 10,000 - 60,000 sq. ft. of
retail space. Various examples include:

(i) Shoppers' Stop, controlled by the K. Raheja Group, a pioneering chain in the country's
organized retail;
(ii) Pantaloons, a family chain store, which is another major player in the segment;
(iii) Westside, the department store chain from Tata Group's Trent Ltd;
(iv) Ebony, a department store chain from another real estate developer, the DS Group;
(v) Lifestyle, part of the Dubai-based retail chain, Landmark Group;
(vi) The Globus department and superstore chain.
Supermarket
Supermarkets, generally large in size and typical in layouts, offer not only household products but
also food as an integral part of their services. The family is their target customer and typical examples
of this retailing format in India are Apna Bazaar, Sabka Bazaar, Haiko, Nilgiri's, Spencer’s from the
RPG Group, Food Bazaar from Pantaloon Retail, etc.
Shop-in-Shop
There is a proliferation of large shopping malls across major cities. Since they are becoming a major
shopping destination for customers, more and more retail brands are devising strategies to scale their
store size in order to gain presence within the large format, department or supermarket, within these
malls. For example, Infinity, a retail brand selling international jewellery and crystal ware from
Kolkata's Magma Group, has already established presence in over 36 department chains and exclusive
brand stores in less than five years. Shop-in-shops have to rely heavily on a very 95 efficiently

managed supply chain system so as to ensure that stock replenishment is done fast, as there is limited
space for buffer stocks.
Specialty Store
Specialty stores are single-category, focusing on individuals and group clusters of the same class, with
high product loyalty. Typical examples of such retail format are: footwear stores, music stores,
electronic and household stores, gift stores, food and beverages retailers, and even focused apparel
chain or brand stores. Besides all these formats, the Indian market is flooded with formats labeled as
multi-brand outlets (MBOs), exclusive brand outlets (EBOs), kiosks and corners, and shop-in-shops.
Category Killers – Large Specialty Retailers
Category killers focus on a particular segment and are able to provide a wide range of choice to the
consumer, usually at affordable prices due to the scale they achieve.
Examples of category killers in the West include Office Mart in the US. In the Indian context, the
experiment in the sector has been led by “The Loft”, a footwear store in Powai, Mumbai measuring
18,000 sq. ft.
Discount Store
A discount store is a retail store offering a wide range of products, mostly branded, at discounted
prices. The average size of such stores is 1,000 sq.ft. Typical examples of such stores in India are:
food and grocery stores offering discounts, like Subhiksha, Margin Free, etc. and the factory outlets of
apparel and footwear brands, namely, Levi’s factory outlet, Nike’s factory outlet, Koutons, etc.

Convenience Store
A convenience store is a relatively small retail store located near a residential area (closer to the
consumer), open long hours, seven days a week, and carrying a limited range of staples and groceries.
Some Indian examples of convenience stores include:
In & Out, Safal, amongst others. The average size of a convenience store is around 800 sq. ft.

CHAPTER II
2. Departmental Stores in Bhilai & Raipur

Anmol Super Bazaar :
Anmol super bazaar was started in 2003 in Bhilai, the owner of the
departmental store is Mr. Paras Chand Chauradiya. They are the mainly selling the products of HUL,
ITC & Ponds companies. Its present manager is Mr. Subodh Shukla.
Address: Chouhan Estate Near Chandra Mourya Takies, Supela Bhilai (C.G.)
Apna Super Bazaar
Address: New Civic Center , Bhilai (C.G.)
Tripti Super Bazaar
Address: Nehru Nagar Near BSR Hospital Bhilai (C.G.)
Big Bazaar, Raipur
Big Bazaar, a part of the Pantaloon Group, is a hypermarket offering a huge array of goods of good
quality for all at affordable prices. Big Bazaar with over 50 outlets in different parts of India is present
in both the metro cities as well as in the small towns. Big Bazaar has no doubt made a big name in the
retail industry of India; moreover shopping here is further made a memorable experience with the
varied rates of discounts on products as well as discount vouchers available in a variety of amounts
Raipur, India, July 19, 2007 - Pantaloon Retail (India) Limited, a part of the Future Group, today
announced its entry in the State of Chhattisgarh with the opening of it’s largest chain of hypermarket

store – BIG BAZAAR – in Raipur city. Widely known for it’s unbelievable pricing and unmatched
offers throughout the year, the popular Big Bazaar will cater to the entire household needs of the
citizens of Raipur city.
Vishal Mega Mart, Raipur
Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price ranges.
The showrooms have over 70,000 products range which fulfills all your household needs, and can be
catered to under one roof. It is covering about 29, 90, 146 sq. ft. in 24 states across India. Each store
gives you international quality goods and prices hard to match. The cost benefit that is derived from
the large central purchase of goods and services is passed on to the consumer.
Westside, Raipur
The Westside stores have numerous departments to meet the varied shopping needs of customers.
These include Menswear, Women’s wear, Kid’s wear, Footwear, Cosmetics, Perfumes and Handbags,
Household Accessories, lingerie, and Gifts. The company has already established 41 Westside
departmental stores (measuring 15,000 - 30,000 square feet each) in Raipur (C.G) Ahmedabad,
Bangalore, Chennai, Delhi, Gurgaon, Ghaziabad & Noida (to be considered as 1 city), Hyderabad,
Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur, Nashik, Pune, Rajkot, Surat,
Vadodara and Jammu. The company hopes to expand rapidly with similar format stores that offer a
fine balance between style and price retailing.

CHAPTER III
3. LITERATURE REVIEW
STATEMENT OF PROBLEM
The study of the consumer behaviour enable us to analysis one’s own decision in buying. The very
look of the departmental store attracts people, the way in which products are visited not only to buy,
but also spend sometimes in the cafeteria and to enjoy the atmosphere, the consumer takes a look to
choose the product and understands the inferential as well as the external factors. This is done in a

clean unpolluted atmosphere in departmental store. It is a matter for study as to why people come and
buy from a departmental store.
ATTITUDE
“Attitudes are evaluative statement either favourable or unfavourable concerning objects, people or
events.They reflect how one feels about something. When I say I like my job, I am expressing my
attitude about work.” ….Stephens P. Robins
“An attitude can be defined as a persistent tendency to feel and behave in a particular way toward
some object.” ….Luthans
Components of Attitude :
1. Cognitive component : The opinion or belief segment of an attitude.
2. Affective component: The emotional or feeling segment of an attitude.
3. Behavioural component: Refers to an intention to behave in a certain way towards someone or
something.
Attitude can be formed by the following:
1. Conditioning
2. Direct experience
3. Social learning

Functions of Attitude:
a. Adjustment
b. Ego-defensive
c. Value Expressive
d. Knowledge
e. Attitude formation
CONSUMER BEHAVIOUR
Consumer behaviour is defined as that behaviour exhibited by people in planning, purchasing and
using economic goods and services. Buyers behaviour is the process by which individuals decide
whether, what, when, where, how and from whom to purchase goods and services.
“Instead of trying to market what is easier for us to make, we must find out much more about what the
consumer is willing to buy – we must apply our creativeness more intelligently to people, and their
wants and needs rather than to product” – Charles G. Martina emphasizing on the above statement, the
target of all marketing activities should be consumers. The firms have to device plans and implement
them so as to achieve consumer satisfaction. This calls for an analysis of how consumer behaves in
the market place. Buyer behaviour may be viewed as an orderly process whereby the individual
interacts with his environment for the purpose of making market decisions on products and services

Thus, the chief characteristics of buyer behaviour are:
1. It includes observable physical activities, such as walking through the market to examine the
products and in making a purchase, and mental activities – such as forming attitudes,
perceiving advantages materials and learning to prefer a particular brand. The consumers
apply both the activities to acquire goods and services and obtain satisfaction from them.
2. Consumer behaviour is a complex and dynamic concept, too constantly changing, and
therefore management need to adjust with the change, otherwise the market may be lost.
3. The individual’s specific behaviour in the market place is affected by interval factors such as
needs, motives, perception and attitudes as well as by external or environmental influences
such as the family, social groups, cultural, economic and business influences.
To achieve a better understanding of the consumer behaviour, study of those disciplines, which may
provide some explanations as to “why people behave as they do” is required. The internal and external
forces and influences interact in highly complex ways, affecting the individual’s total pattern of
behaviour as well as his buying behaviour.
EVALUATION OF ALTERNATIVES
A consumer uses information to arrive at a set of final brand choices. The question is, how does the
consumer choose among the alternative brands in the choice set? He evaluates the various alternatives
available in the market on the basis of certain attributes. There is no simple and single evaluation

process used by all consumers or by one consumer in all buying situations. The attributes of interest to
buyer vary by product, their need, quality, style, etc.
PURCHASE DECISION
Having evaluated the purchase alternatives, he has to decide whether to buy or not to buy. If he has
decided to buy, then he has to take decisions regarding the brand, the quantity of purchase, the place
of purchase and the mode of payment to the made.
POST PURCHASE BEHAVIOUR
After purchasing the product, the consumer will experience some level of satisfaction or
dissatisfaction. This will influence his subsequent behaviour. If he is satisfied, he will show more
interest to buy the product the product or get information that might confirm its high value. Hence, to
satisfy a consumer, a market must try to convince him to choose a product, the attributes for which a
consumer gives importance must be analyzed.
The marketer’s job does not come to an end as soon as the product is being bought, but continues into
the post purchase period. Further, proper understanding of the various participant’s behaviour in the
buying process and the major influences on their buying behaviour, will help the marketers to design
effective marketing programs for their target markets.

3.1 Factors That Influence Buyer Behaviour
Throughout the buying process, various factors may influence the buyer. A person’s
culture, social class, reference groups and self-image all have a bearing on the purchase decision. As
to the situational factors like the presentation of the product, the events in the buyer’s life and the
person’s mood at the time of purchase also induce him to purchase a product of his choice.
1. CULTURAL FACTORS
Culture is the most fundamental of a person’s wants and behaviour. It refers to a set of
learned beliefs, attitudes, values, customs, habits, etc., and determines human wants and behaviour.
Separate marketing strategy can be developed for each culture and market can be segmented for
patterns of behaviour varying between different cultures.
2. SOCIAL FACTORS

The different classes namely, upper class, middle class and lower class also determine the
behaviour of a person to purchase his products. Low class customers buy usually on impulse and do
not even care to read advertisement much. Middle class consumer purchase carefully and read
advertisements much to know and compare the prices of different procedures engaged in the same line
of activity. Upper class consumers want high class goods maintain their status in the society.
3. PERSONAL FACTORS
A buyer’s behavior is also influenced by personal factors such as age, occupation,
income, life style, etc.
a) Age
People buy different products at their different life stage, their taste, preferences, etc., also change
with change in life stage. For instance, taste in dress materials, recreation etc., are age related.
b) Occupation
For certain occupation, the purchase of certain type of products is necessary. For example, a sales
representative will buy fancy dress, shoes, suitcase, etc., to win the attention of the people. Similarly,
a chief executive of a company will buy costly suits, undergo air travel, etc.
c) Income
Income being the main source of purchasing power, the buying pattern of people differs with different
level of income.

d) Life Style
The term life style refers to the person’s pattern of living in the world. People belong to same social
class, occupation, may lead quite different life styles. Life style attempts to profile a person’s way of
being and acting in the world.
4. PSYCHOLOGICAL FACTORS
A person’s buyer behavior is also influenced by the following psychological factors.
a) Motivation
A motive as an inner urge that moves a person to some action. People buy goods as a result of certain
mental as well as economical forces that create desires of buying such goods.
b) Perception
“Perception is the process by which an individual selects, organizes and interprets information inputs
to create a meaningful picture of the world”. Persons at the same motivated stage may act in a quite
different manner if they perceive the situation differently.
c) Learning

Learning may be defined as all changes in an individual’s behaviour arising from past experience.
Learning is the main aspect in the study of human behaviour. Buying decisions are affected critically
by the learning experience of buyers.
d) Attitudes
An attitude is a state of mind feeling. If may be described as a person’s emotional feeling, action,
tendencies towards some idea or object. If a person has an attitude towards a product, it is difficult to
change his attitude because a person’s attitude settles into a consistent pattern. It induces him to
behave in some way. People have attitudes towards each and everything and to study the buyer
behaviour it has to be taken into notice.
3.2 Key Findings till now:
1. At a macro level, manufacturers felt that the impact of modern retail will be positive. According to
them, the advent of organized retail in India was both welcome and inevitable for the Indian economy.

In their opinion, the benefits that organized retail would bring by far outweigh the negative effects of
inadequate retail services in a country like India.
Some of the reasons cited for this positive impact were:
• Benefits for consumers: Organized retail will offer consumers several benefits, such as wider
product choice more in line with consumer needs, lower prices, better shopping experience because of
improved store ambience and increased browse ability, enhanced service, and quality levels.
• Greater job creation: Organized retail will create employment at several levels. The most
significant increase will be in front-end jobs for retail staff, where the contribution of organized retail
will be not only in the greater number of the people employed but also in making jobs that were
otherwise considered “menial”, more dignified, thereby, giving even those without higher educational
qualifications a decent livelihood.
• Efficient supply chain: The robust sourcing and distribution network likely to be set in place by
modern trade would result in a more efficient supply chain management -- reduced lead times, fewer
stock outs, reduced wastage, and consistent product quality.
• Survival of traditional retail: Manufacturers believe that both small and large retailers would
continue to co-exist in India. Small retailers account for the bulk of retail sales today and will remain
a significant force in the future since growing consumption will itself warrant the growth of both
organized and traditional retail. Traditional retailers will also innovate, upgrade their stores and
enhance value-added services to retain and strengthen relationships with their customers.

2. The likely direct impact on the business of manufacturers, however, will not be entirely positive.
The response of manufacturers interviewed to the likely impact of growth of organized retail on their
own businesses was, on the whole, more guarded and less positive. The benefits that organized retail
would bring in terms of creating higher demand for their brands and greater efficiency in the
distribution system would need to be weighed against the pressures on prices, margins, and the threat
of competition from private label brands.
3. Manufacturers anticipate several benefits.
• Organized retail will fuel growth and build efficiencies. Manufacturers felt that the advent of
modern retail will stimulate their growth as well. Initially, this will be because of increased demand
created by organized retailers in order to fill retail shelf space, and, subsequently, because of increased
consumption created by the consumers’ exposures to categories and brands at modern retail formats.
They also felt that the need to service large buyers demanding lower prices and greater efficiencies
will force large manufacturers to invest in people, processes, and technology to streamline their own
production and distribution operations.
• Organized retail will aid development of new FMCG categories.
Manufacturers anticipate that organized retail will help in the development of new product categories
– particularly higher priced categories, categories that have a high degree of consumer involvement
and those which benefit from consumer touch and feel – like personal care products and eatables.
Further, since modern retail facilitates faster customer feedback, they will be able to effect
improvements in products and brands and “go to market” faster.

• Organized retail’s sourcing and distribution network will benefit manufacturers.
Manufacturers felt that, currently, most of organized retail is operating through the traditional supply
chain with its multiplicity of intermediaries. As organized retail grows and large retailers have their
distribution centers (DC) and IT infrastructure in place, manufacturers will be able to supply directly
to these retailers. This would help reduce transaction costs on logistics, packaging, credit,
commissions, etc. Elimination of intermediaries would also bring in more transparency in the flow of
operations.

CHAPTER IV
4. RESEARCH METHODOLOGY
Research Methodology is the way to systematically solve the research problem. Research methodology just
does not deal with research methods but also considers the logic behind the methods. It may be understood as
the science of studding how research is done scientifically and systematically.

Methodology
The primary methods of data collection that is questionnaire technique was used to collect
the data required. Respondents include both male and female. Convenience sampling method has been
adopted under the non-probability sampling technique
The questionnaire consists of four parts namely, personal information, purchasing pattern, details
about products and customers services provided at the store. The questionnaire was designed in such a
way that the respondents were able to express their opinions and ideas freely and frankly.
Sample Area of the Study
The area covered under the study is in Bhilai city.
Period of the Study
The study was conducted during the period March 2010 to April 2010.
Population-
To achieve the objective of the study, the city of Bhilai is selected.
So population of research consists of individual customer of Bhilai city.
Sample Size-

The sample is a representative unit of population. It is neither feasible nor desirable cover
the entire population, so we have taken sample size 180 for this project.
Sampling Method-
The sampling method adopted in the research is convenient sampling. In This sampling
the researcher selects the respondents who are basically coming to the store.
Sources of Data collection-
Both primary and secondary data are required. Primary data is the first hand information
collected directly from the respondents. The tool used here is questionnaire. Primary data is collected
through survey among existing customer.
Secondary Data-
Secondary data is collected through internet and books.

RESEARCH DESIGN

4.1 The Project Brief
The objectives of the study are:
1. To study the factor influencing the customers to purchase house hold articles from departmental
store.
2. To study the needs of the customers at the place of purchase.
3. To study the consumer’s opinion and ideas about the price, quality and services rendered by the
departmental stores.
4. To study the sales services provided by the departmental stores.
5. To suggest, improve in sales and functions in the departmental stores based on results.
Target respondents:-
Age: 20 and above

4.2 RESEARCH PLAN

BEGINNING INVESTIGATION
This phase involved beginning investigation of the various factors which could possibly affect the
consumer’s perception about the various brands and in turn influence the purchasing decisions of the
customer from departmental stores.. We primarily used three methods to identify the various factors. The
Secondary data gathered was analyzed to understand the current scenario of the Retail stores. The analysis of
the secondary data also helped us find different attributes which affect the Retail segment.
4.2.1 Collection of Quantitative data:
Measurement and Scaling Procedures: Non-Comparative Rating scale is used in which respondents
evaluate only one object at a time, and for this reason no comparative scales are often referred to as monadic
scales. No comparative techniques consist of continuous and itemized rating scales.
We have used continuous rating scale in order to rate the choices for purchase considerations and the sources
of purchase decisions.
Questionnaire Design: This phase involved the design of the questionnaire on the basis of the focus group
discussion which identifies possible factors as influencing the customer behavior. Research problems were
listed and then the information needed was identified. The questions were then prepared in order to fulfill the
information requirements as identified earlier.

Survey: Different Survey methods were used for collection of data. The principle method used was Personal
Interviewing of the respondents. Focus group discussion was conducted by us in Raipur.
4.2.1 Sampling Process:
Target Population: The target population is the collection of elements or objects that process the
information sought by the researcher and about which inferences are to be made. Our target population
involves the customers of Supermarket & Departmental stores in Bhilai & Raipur.
Sample Size-:
The aim was to collect 180 samples for the analysis. The samples should be such that they are customers of
Departmental stores. We also tried to get a sufficient ratio of men and women in the samples. The main
demographics targeted were the younger age group as they are more conscious and aware of shopping trends.
Also I tried to focus more on the mothers and young professionals as they would be more interested in trying
out modern stores and was more conscious.
Customers who have been purchasing from the modern stores were better able to answer the questions
regarding the influencing factors and the reasons for their attraction and purchase.
Sampling Technique: A mixture of quota and stratified method was used for sampling, with care being
taken to get responses from customers of different age groups and of different professions.

CHAPTER V

5. DATA ANALYSIS & INTERPRETATION
INTRODUCTION
All the information collected from the sample respondents is analyzed and the results
presented at the end of this chapter. The data analysis are related to the customer need in a
departmental store, various factors influencing their purchase and their opinion regarding the products
price, quality and etc, and the after sales services rendered by the departmental store.
Methodology :
Questionnaire Checking/Editing: The questionnaire is checked for completion and interviewing quality.
Editing is the review of the questionnaire with the objective of increasing accuracy and precision.
Collation of Data: The data is collated in the excel sheet and prepared for statistical analysis. An SPSS view
of the data was also taken for further analysis.
Primary research analysis

The group members have conducted the surveys in the form of questionnaires and Interviews from
respondents format of which has been given in the Primary Research Methodology. Target Group consists of
house‐wives, working professionals and college students above 18 year old.
5.1 DEMOGRAPHIC INFORMATION
TABLE SHOWING THE OCCUPATIONAL STATUS OF THE RESPONDENTS

Interpretation: - Above table showing the occupational status of the respondents. It reveals that,
more than 46% of the respondents are Students, followed by 33% of the respondents are Employed
and least no. of respondents are Business and House Hold.
CHART SHOWING THE AGE GROUP OF THE RESPONDENTS

Interpretation: - The above represents the age group of the respondents. More than 70%
of the respondents belong to the age group of Below 30 years. 13% of the respondents belong
to the age group of 30 - 40 years and a least of 7% belong to the age group of 40-50years and
7% above 50 years.
GRAPH SHOWING THE MARITAL STATUS OF THE RESPONDENTS

Interpretation: - The table shows the marital status of the respondents. It reveals that, about
73% of the total respondents are Single and 27% are married.
EDUCATION QUALIFICATION

Interpretation:-
The above represents that 33% of the respondent are Undergraduate, 40% of the respondent
are Graduate, 27% of the respondent are Postgraduate & 10% of the respondent are
Professionally Qualified.
5.2 ANALYSIS & INTERPRETATION
Q1. From which type of store you prefer purchasing the product?
Options No. Of Respondent Percentage (%)

(I) Organized 21 70%
(II) Both Org. & 9 30%
Unorganized
Total 30 100%

Interpretation:-
The above data shows that 70% of the respondent prefers Organised Stores for
purchasing & 30% of the respondent purchase from both the Organised &
Unorganised Stores.
Q2. How many times do you go for purchasing?
(I)Once in a month 11 36.7%

(II)Once to thrice a month 3 10%
(III)Many times a month 9 30%
(IV)Rarely 7 23.3%
Total 30 100%

Interpretation:-
The above data shows that 37% of the respondent go once in a month, 10% of the respondent
go once to thrice a month, 30% of the respondent goes many times a month & 23% of the
respondent goes rarely for purchasing.
Q3. Which type of product you purchase from Departmental Store?
Options No. Of Response Percentage (%)

(I) Fruits & vegetables 10 13.51%
(II)Provisions & groceries 19 25.7%
(III)Cosmetic product 20 27.0%
(IV)Health care product 11 14.9%
(V)Stationery products 14 18.91%
Total 74 100%

Interpretation:-
The above data shows that 13.5% of the respondent buys fruits & vegetables, 25.5% of the
respondent buys provision & groceries, 27% of the respondent buys cosmetic product, 15% of
the respondent buys health care product, 19% of the respondent buys stationery items from
departmental stores.
Q4. What is the reason for purchasing through Departmental Store?

(I) Convenient 18 34%
(II) Time Saving 15 28.3%
(III) Less Cost 12 22.64%
(IV) Prestige 8 15.1%
Total 53 100%

Interpretation:-
The above data shows that 34% of the respondent purchase from departmental stores because
it is convenient, 28% for time saving, 22.5% because of less cost & 15% because of their
prestige consideration.
Q5. What factors attract you towards modern retail stores?

(I) Variety of products 16 47.1%
(II) Offers & schemes 6 17.65%
(III) Environment 5 14.7%

(IV) Facilities 7 20.6%
Total 34 100%
Interpretation:-
The above data shows that variety of product is the main factor which attracts the customers
while offers & schemes not much influence the customer.
Q6. How do you come to know about offer & schemes?

(I)Advertisement(T.V., 12 36.4%
Radio)
(II) Newspaper/Magaz. 13 39.4%
(III) Through Persons 5 15.2%
(IV)Others 3 9.1%

Total 33 100%
Interpretation:-
The above data shows that main sources of information to the customers are Newspaper, T.V.
& FM Radio.
Q7. Do they provide free door delivery service?

(I) Always 11 36.7%
(II) Often 8 26.7%

(III) Sometimes 2 6.7%
(IV) No 9 30%
Total 30 100%
Interpretation:-
The above data shows that 36.5% of the times departmental stores provides free door delivery
service, 26.5% of the times departmental stores often provides free door delivery service,
6.5% of the times departmental stores provides free door delivery service & 30% of the times
departmental stores don’t provides free door delivery service.
Q8. Do they provide parking facility free of cost?

(I) Yes 23 76.7%
(II) No 7 23.3%
Total 30 100%
No.OfRespondent
25
20
15
10 No.Of Respondent
0
Yes No
Interpretation:-
The above data shows that 77% of the customer uses the parking facility free of cost & 23% of
the customer has to pay for using the parking facility.
Q9. Do they provide discount & benefits?

(I) Always 5 16.7%
(II) Occasionally 10 33.3%
(III) Sometimes 14 46.7%
(IV) No 1 3.3%
Total 30 100%
Interpretation:-
The above data shows that 16.5% of the customer believe that departmental stores always
provides offer & schemes, 33% of the believe occasionally, 46.5% believe sometimes& 3.3%
believe that the departmental stores never provides offer & schemes.
Q10. Do you buy branded products?

(I)Always 7 23.3%
(II)Sometimes 18 60.0%
(III)Rarely 5 16.7%
Total 30 100%
Interpretation:-
The above data shows that 23.3% of the customers always buy branded products, 60% of the
customers sometimes buy branded products & 16.7% of the customers rarely buy branded
products.
Q11. Which mode of purchase you mostly follow?

(I)Cash 30 100%
(II)Credit 0 0%
Total 30 100%
Interpretation:-
The above data shows that since all the departmental stores don’t provide credit facility, they deal
only in cash payment.
Q12. What is your at a time budget for purchasing?

(I)Rs 500-1000 5 16.7%
(II)Rs1000-2000 14 46.7%
(III)Rs 2000-3000 7 23.3%
(IV)Above Rs 3000 4 13.3%
Total 30 100%
Interpretation:-
The above data shows that 16.7% of the customers have their at a time budget of 500-1000,
46.7% of the customers have their at a time budget of 1000-2000, 23.3% of the customers
have their at a time budget of 2000-3000 & 13.3% of the customers have their at a time budget
above Rs 3000.

CHAPTER VI
6.1 FINDINGS

1. Mostly the youth & students prefer the departmental stores.
2. People generally go in departmental stores to buy variety of products.
3. Attractive offers & schemes is not the important factor for purchasing from the departmental
stores.
4. Some departmental stores are not situated at convenient locations.
5. Majority of the customers goes only once in a month for purchasing.
6. Newspaper, Television & FM Radio is the major sources of information to the customer.
7. At a time budget of customers fluctuates in the range of Rs 1000-2000.
8. 86% of the customers are satisfied with services & facilities of departmental stores.
9. When a customer go for purchasing with others (friends, relatives & colleagues) his budget
increases.
10. Customers above age of 40yrs don’t discriminate between General Stores & Departmental
Stores.
11. All Departmental Stores accept Debit & Credit cards, but they do not have the facility of
Online Shopping.

6.2 RECOMMENDATIONS
1. Departmental stores should also offer the facility of trolley for carrying, since bucket is not
sufficient enough.
2. Departmental stores should have the air conditioned stores.
3. Departmental stores should have the different doors for entry & exit.
4. Departmental stores should not allow the customer to carry their own bags while entering in the
store, their should be a proper arrangement for keeping it in a self with token system.
5. They should also start keeping gifts, art & crockery products.
6. They can also attract more customers by keeping some additional products like school bags,
raincoat, belts, goggles, caps, stationary items, greetings & bakery products.
7. They should regularly check their security cameras.
8. If possible they should install the Metal Detector system for the purpose of security & safety.
9. They should always keep fire extinguisher & install fire alarm in their store.
10. Emergency number should be written in the notice board or near counter.
11. They should display screen which keep on informing to the customers.

6.3 LIMITATIONS / CONSTRAINTS
Since this Project was intended to initiate us to the methodologies and techniques of Business Research
Methods, therefore there are a number of constraints in terms of Manpower and Resources to conduct a large-
scale survey. The scope of the project was limited to learning.
There have been a number of limitations because of which the survey may not be indicative of the views of
the target population. A few of these have been mentioned below:
 The Sample size used for the research is less.
 The Sample consisted of large no. of students.
 The Target Area was limited to some colonies, offices and colleges.
 Consultation with Experts would have largely improved quality of the Research.
 The Questionnaire was not extensive and more issues could have been addressed.
 The responses obtained might be inaccurate or biased, inadvertently or deliberately.
 The sample of the respondents chosen for the study might not be the exact representative.
 Analysis of the proposed aspects might differ depending on the tools and techniques used.

6.4 CONCLUSION
After analyzing the Departmental Stores, I concluded that the organized retail has opportunities to grow in
India in spite of the kirana stores because these kirana shops will also get benefit of the growing economy.
The argument that the kirana shops will be affected by these malls is only myth. The organized retail is
attracting more and more Indian as well as foreign players of the retail industry. As my study shows that a
major portion of the organized retail will be developed in small cities and towns, this opportunity has not
been encashed by kirana stores and they are unable to meet the requirements of the customers. Therefore both
the Departmental stores and kirana stores can play simultaneously in India so no need get afraid due to the
Departmental stores.
Nevertheless, there is a timely need for a fresh regulatory framework and competition policy so that both
traditional retail and modern retail can continue to grow in harmony eventually closing the gap between the
organized and unorganized sector. The robust sourcing and distribution network of large retailers would
certainly help make the supply chain more efficient.

Owners of the Departmental stores are gearing up to counter these pressures by strengthening their own
brands, enhancing their retail presence and collaborating with traditional retailers. They believe, however,
that both modern and traditional retailers will co-exist in India for some time to come, as both of them have
their own competitive advantages. The kirana has a low- cost structure, convenient location, and customer
intimacy. Modern retail offers product width and depth and a better shopping experience.
7. BIBLIOGRAPHY
 C.R Kothari, Research Methodology, Wishwa Prakashan 2002.
 Philip Kotler, Marketing Management, Prentice Hall of India Pvt. Ltd., New Delhi.
 Saxena, Rajan, Marketing Management, Tata McGraw Hill Publishing Company, New Delhi.
 Annual Report 2006-07. Ministry of Agriculture, Department of Agriculture & Cooperation,

Government of India.
 Bose, P.R. 2005. Amul mulls setting up 10,000 parlours: May sell fresh, froze vegetables.
 Business Line Internet Edition.

http://www.thehindubusinessline.com/2005/06/22/stories/2005062201480900.
htm 21 (accessed February 4, 2008).
 Business Line. 2007. ITC to take retail biz to doorsteps of customers. February 7.
 Commerce and Industry Ministry. 2007. India Retail Report 2007. Delhi: Commerce and
Industry Ministry, January.

 CRISIL Research, 2007. Organized food retailing can increase rural income, cut inflation
– Resultant increase in rural spending can boost GDP, Insight in Industry, June.
 Financial Express. 2007. Mayawati: Retail to open to RIL. December 25.
 Goldman, A. 1974. “Outreach of Consumers and the Modernization of Urban FooRetailing in

Developing Countries,” Journal of Marketing, 38 (4), October: 8-16.
 Gulati, A. 2007. Organized retail must be competitive and inclusive. Economic Times.
September28.
 Gulati, A. and K. Kanguly. 2007. “Competition among retail giants good,” Economic Times of India,
3 August
 http://economicstimes.indiatimes.com
QUESTIONNAIRE
Dear Sir/Madam,
I am conducting a survey entitled “ A Study on Customer’s Attitude towards Departmental

Stores in Bhilai city” I need your help in conducting this study. Kindly provide me your valuable opinion to fill this
schedule. The information provided by you will be exclusively used for academic purpose.
Part I Demographic Information
a) Name :_______________________________________________
b) Address :_______________________________________________
c) Phone/Mobile No :_______________________________________________
d) Occupation : Student Employed House Wife Business
e) Age : Below 30 years 30-40 y 40-50 y Above 50 y
f) Marital statues : Single Married

g) Education Qualification : Undergraduate Graduate
Postgraduate Professionally Qualified
Part II
1. Are you aware of Departmental Stores?
(I) Yes (II) No
2. From which type of store you prefer purchasing the product?
a) Organized (Departmental Store)
b) Unorganized (General stores)
IF Organized – CONTINUE, ELSE TERMINATE
3. How many times do you go for purchasing?
(I) Once in a month (III) Many times a month
(II) Once to thrice a month (IV) Rarely
4. Which type of product you purchase from Departmental Store?
(I) Fruits & vegetables (IV) Health care product
(II) Provisions & groceries (V) Stationery products
(III) Cosmetic product (VI) all the above
5. What is the reason for purchasing through Departmental Store?
(I) Convenient (IV) Time saving (VI) All
(II) Less cost (V) Prestige
6. What factors attracts you towards modern retail stores?
(a) Variety of products (b) Offers & Schemes

(c) Environment (d) Facilities
7. How do you come to know about offer & schemes?
(I) Advertisement(TV/Radio) (III) Through Persons in contact
(II) Newspaper/Magazines (IV) Others
8. Do they provide free door delivery service?
(I) Always (III) Some times
(II) Often (IV) No
9. Do they provide parking facility free of cost?
(I) Yes (II) No
10. Do they provide discount & benefits?
(I) Always (III) Some times
(II) Occasionally (IV) No
11. Do you buy branded products?
(I) Always (III) Rarely
(II) Sometimes
12. Which mode of purchase you mostly follow?
(I) Cash
(II) Credit
13. What is your at a time budget for purchasing?
(I) Rs 500-1000 (III) Rs 2000-3000
(II) Rs 1000-2000 (IV) Above Rs 3000

LiKert Scale
S.No Questions Strongly Agree Neither Agree Disagree Strongly Don’t Know/
Agree Nor Disagree Disagree No comments
1 Store are conveniently located 12 10 1 6 1
2 Store working hour are suitable 4 22 3 1 0

for you
3 There are variety of product 8 5 6 1 0
available for selection
4 Product display are attractive 5 17 6 2 0
5 Departmental store provides 0 26 4 0 0

satisfaction
6 Purchasing from departmental 2 13 10 5 0
stores helps in saving money
7 Purchasing with family members 3 11 6 4 0
or other affects the budget
Signat
ure
SSIPMT/MBA/SATYAJIT SARKAR Page 73

Thank you for your feedback. We sincerely appreciate your honest opinion and will take your input into
consideration.
SSIPMT/MBA/SATYAJIT SARKAR Page 74

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A

Approved By: Guided By:

Shri Shankaracharya Institute of

entitled “A study on customer’s attitude towards departmental stores in Bhilai city”

is based on my own work carried out during the course of my study.

degree or any other degree/diploma/certificate in this university or any other university of

Enrollment No.:- AE -7084

SSIPMT/MBA/PRASHANT SONDHIYA Page 2

Bhilai (C.G.), India.

To the best of my knowledge and belief the thesis

i) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

Mr. Dalvinder Singh Wadhwa

SSIPMT/MBA/PRASHANT SONDHIYA Page 3

Date:- Prashant Sondhiya

Place:- Raipur MBA II SEM (SSIPMT)

SSIPMT/MBA/PRASHANT SONDHIYA Page 4

1.1 Background study 11

1.2 Modern Retail Format in India 14

2. Departmental Stores in Bhilai & Raipur 19

3.1 Factors that influence Buyer Behaviour 26

3.2 Key findings till now 29

4.1 Project Brief 36

4.2 Research Plan 37

4.2.1 Collection of Quantitative Data 37

5. Data Analysis and Interpretation 41

5.1 Demographic Information 42

5.2 Analysis and Interpretation 46

SSIPMT/MBA/PRASHANT SONDHIYA Page 5

SSIPMT/MBA/PRASHANT SONDHIYA Page 6

SSIPMT/MBA/PRASHANT SONDHIYA Page 7

many organizations have come to make purchase of happy affair.

India is witnessing an unprecedented consumption boom. The economy is growing between 8 to 10

retailing is projected to reach US$ 23 Billion by 2010.

SSIPMT/MBA/PRASHANT SONDHIYA Page 8

entering the bandwagon in an attempt to tap greater opportunities.

presents an opportunity to makers of branded products to convert consumers to branded products.

individual small stores with big chain stores.

future growth difficult for the small retail sector.

supply chain systems.

SSIPMT/MBA/PRASHANT SONDHIYA Page 9

has allowed 51% FDI in “single brand” retail.

China's market becomes increasingly saturated."

SSIPMT/MBA/PRASHANT SONDHIYA Page 10

company and the pricing concepts.

Shopping In Two conduct

SSIPMT/MBA/PRASHANT SONDHIYA Page 11

the department stores that can provide everything you need.

influence under different environment.

SSIPMT/MBA/PRASHANT SONDHIYA Page 12

middlemen consisting of wholesalers and retailers.

departmental stores? Those other forms of retails outlet in Bhilai city.

SSIPMT/MBA/PRASHANT SONDHIYA Page 13

hypermarkets, and Pantaloon Retail's Big Bazaars.

retail space. Various examples include:

SSIPMT/MBA/PRASHANT SONDHIYA Page 15

(v) Lifestyle, part of the Dubai-based retail chain, Landmark Group;

(vi) The Globus department and superstore chain.

RPG Group, Food Bazaar from Pantaloon Retail, etc.

SSIPMT/MBA/PRASHANT SONDHIYA Page 16

space for buffer stocks.

Category Killers – Large Specialty Retailers