PROJECT REPORT ON

FACTORS AFFECTING IMPULSE BUYING BEHAVIOR IN FMCG SECTOR WITH SPECIAL REFERENCE TO BIG BAZAAR & VISHAL MEGA MART IN CHANDIGARH & AROUND REGION

Submitte t! Pu"#$b Te%&"i%$' U"i(e)*it+ i" t&e ,$)ti$' -u'-i''me"t !- t&e )e.ui)eme"t -!) t&e e/)ee !-

B$%&e'!) !- Bu*i"e** A mi"i*t)$ti!"

Submitted to:
Mrs. Shweta Sharma H.O.D (U.B.S)

Submitted by:
Amarinder Singh Roll o:!"#$%&'$%&$( BBA $th sem

Universal Institute Of Engineering and Technology PUNJABTECHNICALUNI E!"IT#$ JALAN%HA!

)O *+ *S
ACKNOWLEDGEMENT PREFACE DECLARATION LIST OF TABLES LIST OF GRAPHS
)HA,*+R O. )HA,*+R AM+ ,A-+ O.

1. 2. 3.

INTRODUCTION REVIEW OF LITERATURE RESEARCH METHODOLOGY 3.2. RESEARCH DESIGN

3.3. OBJECTIVES OF THE STUDY 3.4 .SCOPE OF THE STUDY 3.5. DATA COLLECTION 3.6. LIMITATIONS

1-16 17-21 22-38

4.

ANALYSIS & INTERPRETATIONS

39-46

5.

CONCLUSION & RECOMMENDATIONS

47 4!

 BIBLIOGRAPHY ANNE#URE

4" 4" 5$ 51

A). O/0+D-M+ *

This humble endeavor bears the imprint o man! persons "ho "ere in one "a! or the other help ul in the #ompletion o m! inal pro$e#t report. I "ould li%e to ta%e this opportunit! to present m! vote o than%s to m! &uides "ho a#ted as li&htin& pillars to enli&hten m! "a! throu&h out this pro$e#t. This pro$e#t "ould not have been possible "ithout the %ind assistan#e and &uidan#e o man! people "ho indeed "ere help ul' #ooperative and %ind durin& the entire #ourse o m! pro$e#t.

The a#%no"led&ment "ould not be #omplete "ithout e(pressin& m! indebtedness to m! H)D*+ANAGE+ENT, MRS. SH/+*A SHARMA and a#ult! &uide MRS DA12 D+R .AUR "ho &uided us in this pro$e#t and "as the #onstant sour#e o re eren#e or us and sho"ed ull interest at ea#h and ever! step o our pro$e#t.

Amarinder Singh

,R+3A)+
Research Project is the bridge for a student that takes him from his theoretical knowledge world to practical industry world. The main purpose of it is to expose for industrial and business environment, which cannot be possible in the classroom. The advantages of this sort of integration, which promotes guided to corporate culture, functional, social and norms along with formal teaching are numerous.

DECLARATION
I Amarinder Sin&h Roll no. -./012201203 do hereb! de#lare that
Resear#h Report 4I+567SE 869ING 8EHA:I)6R 4 Submitted to 5un$ab Te#hni#al 6niversit!' in partial ul ilment o 8.8.A. Is the result o m! o"n "or%. I have not submitted this trainin& report to an! other universit! or the a"ard o de&ree.

Submitted *o Ms Shweta Sharma Singh HOD (Management) !"#$%&'$%&$(

Submitted By Amarinder Roll. BBA $th S+M o5

LIST OF TABLE

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CHAPTER97 INTRODUCTION

INTRODUCTION:
&!etailing includes all activities involved in selling goods or services directly to final consu'ers for (ersonal$ non)*usiness use+ A retailer or retail store is any *usiness enter(rise ,hose sales volu'e co'es (ri'arily fro' retailing+- !etail is India.s largest industry$ accounting for over /0 (er cent of the country.s 1%P and around eight (er cent of the e'(loy'ent+ !etail industry in India is at the crossroads+ It has e'erged as one of the 'ost dyna'ic and fast (aced industries ,ith several (layers entering the 'ar2et+ India retail industry is the largest industry in India$ ,ith an e'(loy'ent of around 34 and contri*uting to over /04 of the country.s 1%P+ !etail industry in India is e5(ected to rise 674 yearly *eing driven *y strong inco'e gro,th$ changing lifestyles$ and favora*le de'ogra(hic (atterns+ It is e5(ected that *y 60/8 'odern retail industry in India ,ill *e ,orth U"9 /:7) 600 *illion+ A further increase of :)34 is e5(ected in the industry of retail in India *y gro,th in consu'eris' in ur*an areas$ rising inco'es$ and a stee( rise in rural consu'(tion+ It has further *een (redicted that the retailing industry in India ,ill a'ount to U"9 6/+7 *illion *y 60/0 fro' the current si;e of U"9 :+7 *illion+ "ho((ing in India have ,itnessed a revolution ,ith the change in the consu'er *uying *ehavior and the ,hole for'at of sho((ing also altering+ Industry of retail in India ,hich have *eco'e 'odern can *e seen fro' the fact that there are 'ulti) stored 'alls$ huge sho((ing centers$ and s(ra,ling co'(le5es ,hich offer food$ sho((ing$ and entertain'ent all under the sa'e roof+ India retail industry is e5(anding itself 'ost aggressively$ as a result a great de'and for real estate is *eing created+ Indian retailers (referred 'eans of e5(ansion is to e5(and to other regions and to increase the nu'*er of their outlets in a city+ It is e5(ected that *y 60/0$ India 'ay have 800 ne, sho((ing centers+ In the Indian retailing industry$ food is the 'ost do'inating sector and is gro,ing at a rate of <4 annually+ The *randed food industry is trying to enter the India retail industry and convert Indian consu'ers to *randed food+ "ince at (resent 804 of the Indian grocery *as2et consists of non) *randed ite's+

India retail industry is (rogressing ,ell and for this to continue retailers as ,ell as the Indian govern'ent ,ill have to 'a2e a co'*ined effort+ The (resence of /7'illion 2irana stores *rings into light the very fact that the Indian retail industry is highly frag'ented= unorgani;ed+ !etailing in India is gradually inching its ,ay to,ard *eco'ing the ne5t *oo' industry$ organi;ed retailing in (articular+ The ,hole conce(t of sho((ing has altered in ter's of for'at and consu'er *uying *ehavior$ ushering in a revolution in sho((ing in India+ >odern retail has entered India as seen in s(ra,ling sho((ing centers$ 'ulti)storeyed 'alls and huge co'(le5es offer sho((ing$ entertain'ent and food all under one roof+ The share of retail trade in the country.s gross do'estic (roduct ?1%P@ ,as *et,een 3A/0 (er cent in 600:+ It is currently around /6 (er cent$ and is li2ely to reach 66 (er cent *y 60/0+ Co''ercial real estate services co'(any$ CB !ichard Ellis. findings state that India.s retail 'ar2et is currently valued at U"9 7// *illion$ and is (oised to gro, to U"9 3BB *illion *y 60/B+ The re(ort further stated that organised retail that currently accounts for less than 7 (er cent of the total retail 'ar2et is e5(ected to register a co'(ound annual gro,th rate ?CA1!@ of C0 (er cent and s,ell to U"9 /0: *illion *y 60/B+ A re(ort *y glo*al consultancy fir'$ AT Dearney said EThe consu'er s(ending in India has increased *y an i'(ressive :7 (er cent in the last four years and ,ill Fuadru(le in the ne5t 60 years+E >oreover$ India recently to((ed the Nielsen 1lo*al Consu'er Confidence study$ conducted *y Nielsen$ a 'ar2et research co'(any+ The *iannual re(ort revealed that Indians are Ethe 'ost o(ti'istic lot glo*ally ,ho thin2 that their country ,ill *e out of the econo'ic recession in the ne5t t,elve 'onths+E According to the recent re(ort *y >cDinsey G Co'(any titled .The 1reat Indian Ba;aar$ Organi;ed !etail Co'es of Age in India.$ India.s overall retail sector is li2ely to gro, to U"9 C70 *illion *y 60/7+ Another >cDinsey re(ort .The rise of Indian Consu'er >ar2et.$ esti'ates that the Indian consu'er 'ar2et is li2ely to gro, four ti'es *y 6067+

In a Hoint study recently conducted *y A""OCHA> and DP>1$ the follo,ing findings ,ere revealedI

The total retail 'ar2et si;e in India in 6003 ,as esti'ated at U"9 B7B *illion+ The annual gro,th of the retail 'ar2et in India is e5(ected to *e around 3 (er cent+ The total retail 'ar2et si;e in India is li2ely to touch U"9 C/8 *illion *y 60/0+ The (resent share of organi;ed retail sector is esti'ated at : (er cent+ The esti'ated annual gro,th of organi;ed retail sector is C0 (er cent+ The si;e of organi;ed retail sector *y 60/0 is esti'ated to reach U"9 7/ *illion+ The esti'ated share of organi;ed retail in total retail *y 60/0 is /6 (er cent+ The invest'ent into 'odern retailing for'ats over the co'ing C)7 years is e5(ected to *e around U"9 67)B0 *illion+

The great Indian consu'er 'ar2et is still going strong+ The ETI1 analysis carried out *y the Econo'ic Ti'es revealed that 'ost 'ass consu'er goods and service in India ,ere not 'uch affected *y the glo*al econo'ic slo,do,n+ %es(ite the inflation e5(erienced during the (eriod$ the second)Fuarter results of leading :0 consu'er)related fir's revealed that their aggregate revenues increased *y 3+7 (er cent during the "e(te'*er 6003 Fuarter over the sa'e (eriod in 600:+ Even though this ,as a tad lo,er than the < (er cent gro,th (osted during the first Fuarter of 6003)0<$ it ,as a lot higher than the : (er cent registered during the (revious three Fuarters for these fir's+

G)!3t& C!"ti"ue* A,$%e

%es(ite the glo*al econo'ic slo,do,n$ Indian retailers are still o(ti'istic a*out the India gro,th story+ "(ea2ing on the issue$ >r+ Tarun Joshi$ CEO and >% of Brandhouse !etails said &Jashion retail has not *een i'(acted in a *ig ,ay+ Not even 0+7 (er cent of the ,or2ing (o(ulation has *een hit in India+- &The Indian econo'y is 'ore sta*le than other econo'ies

across the ,orld and one 'ust not confuse India ,ith the rest of the ,orld-$ reiterated >r+ "andee( Dulhalli$ )P$ !etail and >ar2eting$ TanishF+ Kith the B0)C0 (er cent dro( in retail rentals$ Indian retailers are a ha((y lot+ In fact$ retailers are also foreseeing further dro(s in rentals in 600< and they are o(ti'istic a*out their e5(ansion (lans for this year+ !etailers such as "(encer.s !etail$ Juture 1rou($ "ho((ers "to($ Kestside$ Kills Lifestyle$ Bata India$ and !ay'ond$ have (lenty of e5(ansion (lans for 600<+

The Juture 1rou( ,ill focus on launching (rivate la*els ,ith high (rofit 'argins in seg'ents li2e tooth(aste$ sha'(oo$ and *utter a'ongst others+ According to Dishore Biyani$ >% and CEO of the Juture 1rou($ EAnother thrust area ,ill *e entering into ne, seg'ents li2e rural retail and teleco' (roducts distri*ution+ Through .Aadhar. ,e can ra'( u( rural retail$ ,hich is outside the 60 (er cent of the (o(ulation ,e have *een targeting so far+E

Aggressive 'ar2eting efforts *y leading retailers are on+ TanishF is (lanning a 'ar2eting effort for (lain gold along ,ith the Korld 1old Council during the last Fuarter of 6003) 0<+ "i'ilarly$ Brandhouse !etails is (lanning a Hoint venture ,ith a Euro(ean (rivate a((arel la*el for the ne5t financial year$ along ,ith the introduction of a fe, 'ore international *rands+

In Kest Bengal$ leading retailers li2e the Juture 1rou( and "(encer.s !etail$ are e5(anding and u(grading their (resent stores in 600<+ Others li2e Kills Lifestyle$ Turtle Ltd$ and Bis2 Jar'$ are (lanning to set u( ne, stores$ (articularly in the su*ur*s+

Auto co'(any >ahindra G >ahindra ?>G>@ has 'ade a Fuiet foray into the retail sector ,ith the soft launch of its s(ecialty for'at >o' G >e to sell infant care and 'aternity (roducts+ The co'(any has launched t,o outlets in Ludhiana and Ah'eda*ad+

India has one of the largest nu'*er of retail outlets in the ,orld+ A re(ort *y I'ages !etail esti'ates the nu'*er of o(erational 'alls to gro, 'ore than t,o)fold$ to cross C/6$ ,ith 607

'illion sFuare feet *y 60/0$ and a further :/7 'alls to *e added *y 60/7$ ,ith 'aHor retail develo('ents even in tier)II and tier)III cities in India+ Even as the organi;ed retail 'ar2et is starting to ta2e off$ there is an associated surge in *randed discount outlets in India+ To( realtors and local retail chains are develo(ing 'alls in regional *oroughs$ s(ecifically to sell (re'iu' *randed goods+

Ru)$' Ret$i'
Led *y the rising (urchasing (o,er$ changing consu'(tion (atterns$ increased access to infor'ation and co''unication technology and i'(roving infrastructure$ the rural retail 'ar2et is esti'ated to cross U"9 C7+B6 *illion 'ar2 *y 60/0 and U"9 80+CB *illion *y 60/7$ according to a study *y Confederation of Indian Industry ?CII@ and #E" Ban2+ As (er the National Council of A((lied Econo'ic !esearch ?NCAE!@ re(orts$ there are :60 'illion consu'ers across 8$ 6:$000 villages in rural India+ According to a re(ortLIndia !etail !e(ort 600<L *y I'ages J! !esearch$ EIndia.s rural 'ar2ets offer a sea of o((ortunity for the retail sector+ The ur*an)retail s(lit in consu'er s(ending stands at <I//$ ,ith rural India accounting for 77 (er cent of (rivate retail consu'(tion+E !ural India accounted for al'ost half of the Indian retail 'ar2et$ ,hich ,as ,orth a*out U"9 6:B+8C *illion in "e(te'*er 6003+ Kith 'ost of the retail 'ar2ets getting saturated in tier)I and tier)II cities$ the ne5t (hase of gro,th is li2ely to *e seen in the rural 'ar2ets+ >aHor do'estic retailers li2e A Birla$ ITC$ 1odreH$ !eliance and 'any others have already set u( far' lin2ages+ Hariyali Disan Ba;aars ?%C>@ and Aadhars ?Pantaloon)1odreH J @$ Chou(al "agars ?ITC@$ Disan "ansars ?Tata@$ !eliance Jresh$ and Naya #ug Ba;aar$ are esta*lished rural retail hu*s+ !etail giants li2e !eliance$ "(encer.s and "u*hi2sha are also e5(anding in se'i) ur*an and rural areas+

Lu;u)+ Ret$i'

By the ne5t four to five years$ India is e5(ected to *eco'e a 'anufacturing hu* for glo*al lu5ury *rands$ according to a JICCI)#es Ban2 re(ort on lu5ury *rands+ The re(ort states that India has the 'ost ra(idly gro,ing high)net ,orth individuals ?HNI@ (o(ulation in the ,orld$ and the inco'e level of consu'ers is e5(ected to gro, three ti'es *y 6067+ The active age grou( ?67AC7 years@ is li2ely to rise to a third of the (o(ulation+ The re(ort further states that the 'anufacturing *usiness of lu5ury ite's in India can cross U"9 700 'illion ,ith glo*al *rands li2e Louis uitton and Jrette loo2ing at India as a 'anufacturing *ase+ According to a survey done *y AT Dearney$ the Indian lu5ury retail 'ar2et is esti'ated to touch U"9 B0 *illion *y 60/7+ Esti'ated to *e the /6th largest in the ,orld$ it has *een gro,ing at the rate of 67 (er cent (er annu'+

Ret$i' F)$"%&i*i"/
Along ,ith e)tailing$ another (erce(ti*le trend in the gro,th of organised retail 'ar2et has *een the conce(t of retail franchising+ According to industry esti'ates$ retail franchising has *een gro,ing at the rate of 80 (er cent in the last three years and is set to gro, t,o)fold in the ne5t five years+ And ,ith i''ense (otential seen in this seg'ent$ the U"9 C *illion)franchising industry is li2ely to see an al'ost t,o)fold rise in the nu'*er of franchisees ?fro' 0+6 'illion@ *y 60/0+

I""!($ti(e Ret$i' C!"%e,t*

Kith the entry of ne, (layers and the 'ar2et *eco'ing increasingly co'(etitive$ retail (layers are using innovative retail conce(ts to attract consu'ers+ Kith reduced co''odity (rices and the recent e5cise duty cuts$ in(ut costs have co'e do,n *y around 67)B0 (er cent in several categories+ "u*seFuently$ 'any value retailers have *rought do,n (rices *y over /7 (er cent for various (roduct categories to encourage greater consu'(tion+ They are also ste((ing u( their *argains and discount offers+ !etailers li2e Big Ba;aar$ %.>art$ "(encer.s and Jood Ba;aar$ a'ong other retailers$ have *egun slashing (rices in

(roduct categories li2e a((arel$ ho'e (roducts$ and foods ?(rivate la*els@+ In fact$ 'odern retailers are no, also selling (rivate la*els ,ith consu'ers loo2ing out for chea(er *rands+ !etail co'(anies are also develo(ing and (ro'oting their in)house *rands+ The Juture 1rou( ,ill *e targeting (rofits ,orth U"9 6+07 *illion fro' its in)house *rands in J>C1$ household consu'er dura*le and electronics and a((arel categories *y 60/6+ After the good (erfor'ance of its in)house consu'er *rands such as Tasty Treat$ Jresh G Pure$ %JGC$ Doreo$ the co'(any no, ,ants to e5tend it to additional categories li2e health G *eauty$ dairy$ a((arel$ and accessories+ Jurther'ore$ Big Ba;aar$ the hy(er'ar2et chain of Juture 1rou($ is introducing Custo'er Advisory Boards ?CABs@ as a 'easure for receiving valua*le custo'er feed*ac2+ Kith the U"9 8+B/ *illion (har'a retailing *eco'ing (rogressively 'ore organised$ (layers are no, loo2ing at ne,er for'ats to attract 'ore (eo(le to their stores+ Phar'acy chains li2e >edPlus and 1oodlife have started (roviding health chec2)u(s$ diagnostic services$ dental care and 'edical counselling to its (atients$ *esides selling (har'a and ,ellness (roducts+ 1oodlife is tying u( ,ith the retail 'aHor$ Juture grou($ to set u( these convenience clinics at 'alls and in the high streets+ >edPlus o(erates /7 such integrated clinics$ and is (lanning to o(en at least 70 such clinics *y >arch 600<+ Innovative conce(ts in recreational retail are (ulling (eo(le to 'alls$ and *ig retail set)u(s account for a s'all *ut ra(idly gro,ing (art of a 'ulti)'illion dollar industry+ There are a variety of conce(ts li2e 'ade)to)order (ottery)(ainting$ (ortrait)'a2ing$ creating toons or casting gold and silver i'(ressions that have (roliferated in 'alls or e5ist as standalone ventures+ In fact$ a ,hole ne, conce(t of custo'ised$ leisure retail has o(ened u( for the Indian consu'er

SWOT A"$'+*i*: St)e"/t&*:

/+ !etailing is a <Te%&"!'!/+9i"te"*i(e< industry+ It is technology that ,ill hel( the organi;ed retailers to score over the unorgani;ed retailers+ "uccessful organi;ed retailers today ,or2 closely ,ith their vendors to (redict consu'er de'and$ shorten lead ti'es$ reduce inventory holding and ulti'ately save cost+ E5a'(leI Kal)>art (ioneered the conce(t of *uilding co'(etitive advantage through i*t)ibuti!" & i"-!)m$ti!" *+*tem* in the retailing industry+ They introduced t,o innovative logistics techniFues A cross)doc2ing and E%I ?electronic data interchange@ 6+ On an average a su(er 'ar2et stoc2s u( to 7000 "DU.s against a fe, hundred stoc2ed ,ith an average unorgani;ed retailer+ This ,ill (rovide variety in (roducts ?reFuired *readth G de(th for consu'ers@ B+ As a conseFuence of high volu'es$ (rocure'ent ,ill *e direct fro' the >anufacturer+ Hence$ 'erchandise can *e offered at lo,er costs+

We$="e**e*:
7> Le** C!"(e)*i!" 'e(e'I %es(ite high footfalls$ the conversion ratio has *een very lo, in the retail outlets in a 'all as co'(ared to the standalone counter (arts+ It is seen that actual conversions of footfall into sales for a 'all outlet is a((ro5i'ately 60)674+ On the other hand$ a high street store of retail chain has an average conversion of a*out 70)804+ As a result$ a stand)alone store has a !OI ?return on invest'ent@ of 67)B04M in contrast the retail 'aHors are e5(eriencing a !OI of 3)/04 0> Cu*t!me) L!+$'t+I !etail chains are yet to settle do,n ,ith the (ro(er 'erchandise 'i5 for the 'all outlets+ "ince the stand)alone outlets ,ere esta*lished long ti'e *ac2$ so they have sta*ili;ed in ter's of footfalls G 'erchandise 'i5 and thus have a higher custo'er loyalty *ase+

O,,!)tu"itie*:
/+ The Indian 'iddle class is already B0 Crore G is (roHected to gro, to over 80 Crore *y 60/0 'a2ing India one of the largest consu'er 'ar2ets of the ,orld+ The IMAGES9?SA (roHections

indicate that *y 60/7$ India ,ill have over @@ C)!)e ,e!,'e u" e) t&e $/e !- 08 ) reflecting the enor'ous o((ortunities (ossi*le in the =i * $" tee"* )et$i'i"/ *e/me"t+ 6+ Organi;ed retail is only B4 of the total retailing 'ar2et in India+ It is esti'ated to gro, at the rate of 67)B04 (+a+ and reach IN! /$00$000 Crore *y 60/0+ A> Pe)%!'$ti"/ !3" I In India it has *een found out that the to( 8 cities contri*ute for 884 of total organi;ed retailing+ Khile the 'etros have already *een e5(loited$ the focus has no, *een shifted to,ards the tier)II cities+ The .retail *oo'.$ 374 of ,hich has so far *een concentrated in the 'etros is *eginning to (ercolate do,n to these s'aller cities and to,ns+ The contri*ution of these tier)II cities to total organi;ed retailing sales is e5(ected to gro, to 60)674+ B> Ru)$' Ret$i'i"/: India.s huge rural (o(ulation has caught the eye of the retailers loo2ing for ne, areas of gro,th+ ITC launched India.s first rural 'all EChau(al "agaE offering a diverse range of (roducts fro' J>C1 to electronic goods to auto'o*iles$ atte'(ting to (rovide far'ers a one)sto( destination for all their needs+E Hariyali Ba;arE is started *y %C> "rira' grou( ,hich (rovides far' related in(uts G services+ The 1odreH grou( has launched the conce(t of .agri)stores. na'ed EAdhaarE ,hich offers agricultural (roducts such as fertili;ers G ani'al feed along ,ith the reFuired 2no,ledge for effective use of the sa'e to the far'ers+ Pe(si on the other hand is e5(eri'enting ,ith the far'ers of PunHa* for gro,ing the right Fuality of to'ato for its to'ato (urees G (astes+

T&)e$t*:
/+ If the unorgani;ed retailers are (ut together$ they are (arallel to a large su(er'ar2et ,ith no or little overheads$ high degree of fle5i*ility in 'erchandise$ dis(lay$ (rices and turnover+ 6> S&!,,i"/ Cu'tu)eI "ho((ing culture has not develo(ed in India as yet+ Even no, 'alls are Hust a (lace to hang around ,ith fa'ily and friends and largely confined to ,indo,) sho((ing+

B+ Cultural locations+

ariation leads to variation in 'erchandise in India at different geogra(hical

C&$''e"/e* i" Ret$i':

The follo,ing are the 2ey areas that 'ay (ose a threat to those retail co'(anies that ignore the i'(acts of giving less i'(ortance to 'anage their de'and and su((lyI ) Jorecasting and Inventory >anage'ent for JIT re(lenish'ents of (roducts+ Pea2 "eason %e'and Handling+ Order >anage'ent in case of retailers ,ith 'ulti(le outlets+ Karehouse >anage'ent in case of 'ulti(le outlets+ Introducing ne, (roducts+ Handling variety of ite's+

Futu)e T)e" : S%!,e !- 0B&) )et$i'i"/

The conce(t of 6Chr+ retailing in India has *een (resent only in very li'ited for'ats li2e the (har'aceuticals ?A(ollo@ and fuel retail outlets ?H+P$ !eliance etc+@ and the other retail for'ats used to o(erate only till the early hours of the night+ But *ecause of the changing lifestyles and the *uying ha*its of the consu'ers the retailers have *een e5tending their o(erating hours till late nights+ >ost of the Indian retail for'ats though ca(a*le of o(erating their for'ats round the cloc2 do not choose to do so *ecause of the non feasi*ility of the idea at (resent ta2ing in conHunction the custo'ersN readiness+ Jor instance if any of the hy(er 'ar2et or su(er'ar2et is functioning during the night the retailer has to *ear the e5tra costs of electricity$ la*or and 'aintenance if the nu'*er of footfalls are less very lo, during the late nights ,hich other,ise ,ould *e (rofita*le to hi'+ Any,ays$ the sho((ing ti'e of the consu'er is considera*ly increasing+ >oreover$ in India 'ost of the retailing is all

a*out food and groceries+ It 'ight not *e a rational (rediction that all the consu'ers ,ill ste( into the retail outlet at 'idnights to *uy food and groceries+ This (ro*le' can *e overco'e *y i'(le'enting the idea in (laces ,hich have a floating (o(ulation even during the nights li2e rail,ay stations and *us stations+ Ho,ever ,ith the u(co'ing culture of 'alls and the changing lifestyles of the (eo(le one can design a s'all (art of the store or a 'all for a ne, 6C=: retail for'at ,hich consists of the essential (roducts li2e 'edicines$ fruits and vegeta*les$ groceries and so'e other J>C1 (roducts and test 'ar2et it+ Once if the sales start sho,ing so'e consistent (ositive figures and if the cro,d increases then the store can co'e in a *igger ,ay to reach out to their custo'ers+ The other o(tion for trying the conce(t of 6Chr retailing is that the retailer can have a 'o*ile outlet ,hich can (lace itself in the areas ,hich have su*stantial night traffic for the sales to ha((en+ And once the (eo(le are to the 6Chr sho((ing then the retail (lans can *e altered accordingly+

FMCG SECTOR

FMCG SECTOR: Ke regularly tal2 a*out things li2e *utter$ (otato chi(s$ tooth(astes$ ra;ors$ household care (roducts$ (ac2aged food and *everages$ etc+ But do ,e 2no, under ,hich category these things co'eO They are called J>C1s+ J>C1 is an acrony' for turnover and are relatively chea(er+ Jast >oving Consu'er 1oods ?J>C1@ goods are (o(ularly na'ed as consu'er (ac2aged goods+ Ite's in this category include all consu'a*les ?other than groceries=(ulses@ (eo(le *uy at regular intervals+ The 'ost co''on in the list are toilet soa(s$ detergents$ sha'(oos$ tooth(aste$ shaving (roducts$ shoe (olish$ (ac2aged foodstuff$ household accessories and e5tends to certain electronic goods+ These ite's are 'eant for daily of freFuent consu'(tion and have a high return+ A 'aHor (ortion of the 'onthly *udget of each household is reserved for J>C1 (roducts+ The volu'e of 'oney circulated in the econo'y against J>C1 (roducts is very high$ as the nu'*er of (roducts the consu'er use is very high+ Co'(etition in the J>C1 sector is very high resulting in high (ressure on 'argins+ J>C1 co'(anies 'aintain intense distri*ution net,or2+ Co'(anies s(end a large (ortion of their *udget on 'aintaining distri*ution net,or2s+ Ne, entrants ,ho ,ish to *ring their (roducts in the national level need to invest huge su's of 'oney on (ro'oting *rands+
Fast Moving Consumer Goods$

,hich

refer to things that ,e *uy fro' local su(er'ar2ets on daily *asis$ the things that have high

>anufacturing can *e outsourced+ A recent (heno'enon in the sector ,as entry of 'ultinationals and chea(er i'(orts+ Also the 'ar2et is 'ore (ressuri;ed ,ith (resence of local (layers in rural areas and state *rands+ SCOPE OF THE SECTOR: The Indian J>C1 sector ,ith a 'ar2et si;e of U"9/B+/ *illion is the fourth largest sector in the econo'y+ A ,ell)esta*lished distri*ution net,or2$ intense co'(etition *et,een the organi;ed and unorgani;ed seg'ents characteri;e the sector+ J>C1 "ector is e5(ected to gro, *y over 804 *y 60/0+ That ,ill translate into an annual gro,th of /04 over a 7)year (eriod+ It has *een esti'ated that J>C1 sector ,ill rise fro' around !s 78$700 crores in 6007 to !s <6$/00 crores in 60/0+ Hair care$ household care$ 'ale groo'ing$ fe'ale hygiene$ and the chocolates and confectionery categories are esti'ated to *e the fastest gro,ing seg'ents$ says an H"BC re(ort+ Though the sector ,itnessed a slo,er gro,th in 6006)600C$ it has *een a*le to 'a2e a fine recovery since then. Jor e5a'(le$ Hindustan Levers Li'ited ?HLL@ has sho,n a healthy gro,th in the last Fuarter+ An esti'ated dou*le)digit gro,th over the ne5t fe, years sho,s that the good ti'es are li2ely to continue+ Kith the (resence of /6+64 of the ,orld (o(ulation in the villages of India$ the Indian rural J>C1 'ar2et is so'ething no one can overloo2+ Increased focus on far' sector ,ill *oost rural inco'es$ hence (roviding *etter gro,th (ros(ects to the J>C1 co'(anies+ Better infrastructure facilities ,ill i'(rove their su((ly chain+ J>C1 sector is also li2ely to *enefit fro' gro,ing de'and in the 'ar2et+ Because of the lo, (er ca(ita consu'(tion for al'ost all the (roducts in the country$ J>C1 co'(anies have i''ense (ossi*ilities for gro,th+ And if the co'(anies are a*le to change the 'indset of the consu'ers$ i+e+ if they are a*le to ta2e the consu'ers to *randed (roducts and offer ne, generation (roducts$ they ,ould *e a*le to generate higher gro,th in the near future+ Ho,ever$ the de'and in ur*an areas ,ould *e the 2ey gro,th driver over the long ter'+ Also$ increase in the ur*an (o(ulation$ along ,ith increase in inco'e levels and the availa*ility of ne, categories$ ,ould hel( the ur*an areas 'aintain their (osition in ter's of consu'(tion+ At (resent$ ur*an India accounts for 884 of total J>C1 consu'(tion$ ,ith rural India accounting for the re'aining BC4+ Ho,ever$ rural India accounts for 'ore than C04 consu'(tion in 'aHor J>C1 categories such as (ersonal care$ fa*ric care$

and hot *everages+ In ur*an areas$ ho'e and (ersonal care category$ including s2in care$ household care and fe'inine hygiene$ ,ill 2ee( gro,ing at relatively attractive rates+ Kithin the foods seg'ent$ it is esti'ated that (rocessed foods$ *a2ery$ and dairy are long)ter' gro,th categories in *oth rural and ur*an areas+

MAR?ET POTENTIALITY OF FMCG INDUSTRY "o'e of the 'erits of J>C1 industry$ ,hich 'ade this industry as a (otential one are lo, o(erational cost$ strong distri*ution net,or2s$ (resence of reno,ned J>C1 co'(anies+ Po(ulation gro,th is another factor ,hich is res(onsi*le *ehind the success of this industry

TOP 78 PLAYERS IN FMCG INDUSTRY T$b'e 7>7>

S> NO> C!m,$"ie*

-. 2. 3. 2. /. 0. 1. 3 ;. -..

Hindustan Unilever Ltd+ ITC ?Indian To*acco Co'(any@ NestlP India 1C>>J ?A>UL@ %a*ur India Asian Paints ?India@ Cad*ury India Britannia Industries Procter G 1a'*le Hygiene and Health Care >arico Industries

INDIAN COMPETITIVENESS AND COMPARISON WITH THE WORLD MAR?ETS: The follo,ing factors 'a2e India a co'(etitive (layer in J>C1 sectorI /+ A AILABILIT# OJ !AK >ATE!IALI Because of the diverse agro)cli'atic conditions in India$ there is a large ra, 'aterial *ase suita*le for food (rocessing industries+ India is the largest (roducer of livestoc2$ 'il2$ sugarcane$ coconut$ s(ices and cashe, and is the second largest (roducer of rice$ ,heat and fruits Gvegeta*les+ India also (roduces caustic soda and soda ash$ ,hich are reFuired for the (roduction of soa(s and detergents+ The availa*ility of these ra, 'aterials gives India the location advantage+ 6+ LABOU! CO"T CO>PA!I"ONI Fi/ 7>7>

Lo, cost la*or gives India a co'(etitive advantage+ India.s la*or cost is a'ongst the lo,est in the ,orld$ after China G Indonesia+ Lo, la*or costs give the advantage of lo,

cost of (roduction+ >any >NC.s have esta*lished their (lants in India to outsource for do'estic and e5(ort 'ar2ets+

CONCEPT OF

IMPULSE BUYING

IMPULSE BUYING: I'(ulsive (urchasing$ generally defined as a consu'erNs un(lanned (urchase ,hich is an i'(ortant (art of *uyer *ehavior+ It accounts for as 'uch as 864 of su(er'ar2et sales and 304 of all sales in certain (roduct categories+ Though i'(ulsive (urchasing has attracted attention in consu'er research$ unfortunately there is a dearth of research on grou()level deter'inants+ >ar2eters and retailers tend to e5(loit these i'(ulses ,hich are tied to the *asic ,ant for instant gratification+ Jor e5a'(le$ a sho((er in a su(er'ar2et 'ight not s(ecifically *e sho((ing for confectionary+ Ho,ever$ candy$ gu'$ 'ints and chocolate are (ro'inently dis(layed at the chec2out aisles to trigger i'(ulse *uyers to *uy ,hat they 'ight not have other,ise considered+ Alternatively$ i'(ulse *uying can occur ,hen a (otential consu'er s(ots so'ething related to a (roduct that stirs a (articular (assion in the'$ such as seeing a certain country.s flag on the cover of a certain % %+ "ale ite's are dis(layed in 'uch the sa'e fashion+ I'(ulse *uying can also e5tend to so)called E*ig tic2etE ite's such as auto'o*iles and ho'e a((liances+ Auto'o*iles in (articular are as 'uch an e'otional (urchase as a rational one+ This

in turn leads auto dealers all over the ,orld to 'ar2et their (roducts in a ra(id)fire$ al'ost carnival)li2e 'anner designed to a((eal to e'otion over reason+ I'(ulse *uying disru(ts the nor'al decision 'a2ing 'odels in consu'ers. *rains+ The logical seFuence of the consu'ers. actions is re(laced ,ith an irrational 'o'ent of self gratification+ I'(ulse ite's a((eal to the e'otional side of consu'ers+ "o'e ite's *ought on i'(ulse are not considered functional or necessary in the consu'ers. lives+ Preventing i'(ulse *uying involves techniFues such as setting *udgets *efore sho((ing and ta2ing ti'e out *efore the (urchase is 'ade+ A study (u*lished in the June 6003 issue of the Journal of Consu'er !esearch suggests that consu'ers are 'ore susce(ti*le to 'a2ing i'(ulsive (urchases for one *rand over another if they are distracted ,hile sho((ing+ In the study$ Central >ichigan University Psychology (rofessor Bryan 1i*son surveyed college students *y 'easuring their (reference for a variety of soft drin2s$ including Co2e and Pe(si+ !esults of 1i*son.s study found that i'(licit attitudes$ or those that (eo(le 'ay not *e conscious of and a*le to ver*ally e5(ress$ (redicted (roduct choice only ,hen (artici(ants ,ere (resented ,ith a cognitive tas2$ suggesting that i'(licit (roduct attitudes 'ay (lay a greater role in (roduct choice ,hen the consu'er is distracted or 'a2ing an i'(ulse (urchase+ There ,as a study conducted *y &"ales G Custo'er "ervice %e(art'ent- of &Te5as Agricultural E5tension "ervice Te5as AG> University "yste' College "tation$ Te5as-+ According to this study the researchers find the ti(s to increase the i'(ulsive sales of the flo,ers+ The findings of the study ,ereI Ti,* -!) B!!*ti"/ Im,u'*e S$'e*: Creating variety in the de(art'ent ,ith freFuent changes of dis(lay and 'ove'ent of regularly sold 'erchandise also entices custo'ers+ !ecogni;ing ite's that ty(ically 'a2e a 'ini'al contri*ution to sales and re(lacing the' ,ith ite's that create Esales a((ealE increases the li2elihood of i'(ulse sales+ %is(lays that tie in ,ith a national slogan or store,ide the'e generate interest$ as do dis(lays that highlight s(ecial (roducts and services+ QRTi( /I use color to create original$ eye)catching dis(lays+ QRTi( 6I use the'es to create interest in unusual (roducts and rene, interest in everyday ite's+

QRTi( BI 2ee( undecorated (lants availa*le to attract consu'ers ,ho are *uying for the'selves+ QRTi( CI create dis(lays that e'(hasi;e s(ecial (roducts or services+ QRTi( 7I change stoc2 and dis(lays often so consu'ers are dra,n into the de(art'ent each ,ee2+ QRTi( 8I *e fle5i*le enough to change an ite' or arrange'ent that isnSt selling+ QRTi( :I have a (erson on hand to (rovide infor'ation and assistance at all ti'es+ Q Ti( 3I create a friendly$ co'forta*le at'os(here ,ith accessi*le dis(lays that encourage *ro,sing+ QRTi( <I offer only Fuality (lants and floral arrange'ents+ QRTi( /0I situate the de(art'ent so that custo'ers 2no, ,here it is and can see it fro' 'ost areas of the store+ This research suggests that the (resence of other (ersons in a (urchasing situation is li2ely to have a nor'ative influence on the decision to 'a2e a (urchase+ The nature of this influence$ ho,ever$ de(ends on *oth (erce(tions of the nor'ative e5(ectations of the individuals ,ho e5ert the influence and the 'otivation to co'(ly ,ith these e5(ectations+ Peers and fa'ily 'e'*ers$ are the t,o (ri'ary sources of social influence$ often have different nor'ative e5(ectations+ Thus$ it has *een evaluated t,o factors that are li2ely to affect the 'otivation to confor' to social nor'sI a@ The inherent susce(ti*ility to social influence and *@ The structure of the grou( 1rou( cohesiveness refers to the e5tent to ,hich a grou( is attractive to its 'e'*ers+ The theory (ro(osed *y Jish*ein and AH;en hel(s conce(tuali;e these effects+ This theory assu'es that *ehavior is a 'ulti(licative function of e5(ectations for ,hat others consider to *e socially desira*le and the 'otivation to co'(ly ,ith these e5(ectations+

INTRODUCTION

TO THE COMPANIES

COMPANY PROFILE: In the (resent research (a(er$ the study has *een focused on Big Ba;aar and as follo,sI ishal >ega 'art

to 2no, the i'(ulse *uying *ehavior of the consu'ers+ The *rief (rofiles of t,o co'(anies are

BIG BAZAAR

Big *a;aar is o,ned and o(erated *y Juture Ba;aar India Ltd+$ a su*sidiary of Pantaloon !etail ?India@ Li'ited+ As (art of IndiaNs largest retail chain$ it enHoys the *enefits of *uying in *ul2 for

the entire grou( and 2ee(s the 'argins lo,$ so that custo'ers get a great range of (roducts at great (rices+ Pantaloon !etail ?India@ Li'ited led *y Dishore Biyani is the country.s largest retailer+ It o,ns and o(erates 'ulti(le retail for'ats including Pantaloons$ Big Ba;aar$ Jood Ba;aar$ Central$ E)Tone$ Jashion "tation$ %e(ot and 'any others+ Pantaloon !etail ,as selected as the Best of Best !etailers in Asia *y !etail Asia)Pacific To( 700 'aga;ine in 6008+Big Ba;aar ,as a,arded the CNBC)A,aa; Consu'er A,ards in 6008 and the !eaders. %igest Platinu' Brand A,ard 6008+

ABOUT THE FUTURE GROUP

Juture 1rou($ led *y its founder and 1rou( CEO$ >r+ Dishore Biyani$ is one of IndiaNs leading *usiness houses ,ith 'ulti(le *usinesses s(anning across the consu'(tion s(ace+ Khile retail for's the core *usiness activity of Juture 1rou($ grou( su*sidiaries are (resent in consu'er finance$ ca(ital$ insurance$ leisure and entertain'ent$ *rand develo('ent$ retail real estate develo('ent$ retail 'edia and logistics+ Led *y its flagshi( enter(rise$ Pantaloon !etail$ the grou( o(erates over /6 'illion sFuare feet of retail s(ace in :/ cities and to,ns and 87 rural locations across India+ HeadFuartered in >u'*ai ?Bo'*ay@$ Pantaloon !etail e'(loys around B0$000 (eo(le and is listed on the Indian stoc2 e5changes+ The co'(any follo,s a 'ulti)for'at retail startegy that ca(tures al'ost the entire consu'(tion *as2et of Indian custo'ers+ In the lifystyle seg'ent$ the grou( o(erates Pantaloons$ a fashion retail chain and Central$ a chain of sea'less 'alls+ In the value seg'ent$ its 'arFuee *rand$ Big Ba;aar is a hy(er'ar2et for'at that co'*ines the loo2$ touch and feel of Indian *a;aars ,ith the choice and convenience of 'odern retail+ In 6003$ Big Ba;aar o(ened its /00th store$ 'ar2ing the fastest ever organic e5(ansion of a hy(er'ar2et+ The first set of Big Ba;aar stores o(ened in 600/ in Dol2ata$ Hydera*ad and Bangalore+ The grou(Ns s(eciality retail for'ats include$ *oo2s and 'usic chain$ %e(ot$ s(orts,ear retailer$ Planet "(orts$ electronics retailer$ E;one$ ho'e i'(rove'ent chain$ Ho'e To,n and rural retail chain$ Aadhar$ a'ong others+ It also o(erates (o(ular sho((ing

(ortal$ future*a;aar+co'+ Juture Ca(ital Holdings$ the grou(Ns financial ar' (rovides invest'ent advisory to assets ,orth over 9/ *illion that are *eing invested in consu'er *rands and co'(anies$ real estate$ hotels and logistics+ It also o(erates a consu'er finance ar' ,ith *ranches in /70 locations+ Other grou( co'(anies include$ Juture 1enerali$ the grou(Ns insurance venture in (artnershi( ,ith ItalyNs 1enerali 1rou($ Juture Brands$ a *rand develo('ent and IP! co'(any$ Juture Logistics$ (roviding logistics and distri*ution solutions to grou( co'(anies and *usiness (artners and Juture >edia$ a retail 'edia initiative+ The grou(Ns (resence in Leisure G Entertain'ent seg'ent is led through$ >u'*ai)*ased listed co'(any 1ala5y Entertain'ent Li'ited+ 1ala5y leading leisure chains$ "(orts Bar and Bo,ling Co+ and fa'ily entertain'ent centres$ J/6B+ Through its (artner co'(any$ Blue Joods the grou( o(erates around /00 restaurants and food courts through *rands li2e Bo'*ay Blues$ "(aghetti Ditchen$ Noodle Bar$ The "(oon$ Co((er Chi'ney and 1elato+ Juture 1rou(Ns Hoint venture (artners include$ U")*ased stationery (roducts retailer$ "ta(les and >iddle East)*ased A5io' Co''unications+ The grou(Ns flagshi( co'(any$ Pantaloon !etail ,as a,arded the International !etailer of the #ear 600:$ *y the U")*ased National !etail Jederation$ the largest retail trade association and the the E'erging >ar2et !etailer of the #ear 600: at the Korld !etail Congress in Barcelona+ Juture 1rou( *elieves in develo(ing strong insights on Indian consu'ers and *uilding *usinesses *ased on Indian ideas$ as es(oused in the grou(Ns core value of UIndianness+N The grou(Ns cor(orate credo is$ U!e,rite rules$ !etain values+N

VISHAL MEGA MART

THE VISHAL GROUP:

Khat started as a hu'*le one store enter(rise in /<38 in Dol2ata ?erst,hile$ Calcutta@ is today a conglo'erate enco'(assing 71A sho,roo's in 778 cities = 0B states+ IndiaNs first hy(er)'ar2et has also *een o(ened for the Indian consu'er *y India+ ishal+ "ituated in the national ca(ital %elhi this store *oasts of the singe largest collection of goods and co''odities sold under one roof in ishal >ega 'art is IndiaNs first hy(er 'ar2et ,hich is having /68 sho,roo's in 3B cities = 60 states+ ishal is one of fastest gro,ing retailing grou(s in India+ Its outlets cater to al'ost all (rice ranges+ The sho,roo's have over :0$000 (roducts range ,hich fulfills all your household needs$ and can *e catered to under one roof+ It is covering a*out 607<6<6 lac sF+ ft+ in /3 states across India+ Each store gives you international Fuality goods and (rices hard to 'atch+ The grou( had a turnover of !s+ /C8B+/6 'illion for fiscal 6008$ under the dyna'ic leadershi( of >r+ !a' Chandra Aggar,al+ The grou( had of turnover !s 633C+CB 'illion for fiscal 600: and !s+ 8068+7B 'illion for fiscal 6003+ The ishal stores offer afforda*le fa'ily fashion at (rices to suit every (oc2et+ The grou(Ns (ri'e focus is on retailing+ The Vi*&$' stores offer afforda*le fa'ily fashion at (rices to suit every (oc2et+ +Vi*&$' is one of fastest gro,ing retailing grou(s in India+ Its outlets cater to al'ost all (rice ranges+ The sho,roo's have over :0$000 (roducts range ,hich fulfills all your household needs$ and can *e catered to under one roof+ It is covering a*out 06C 68C 7B4 *.> -t> in 0B states across India+ Each store gives you international Fuality goods and (rices hard to 'atch+ The cost *enefits that is derived fro' the large central (urchase of goods and services is (assed on to the consu'er+ The grou(Ns (hiloso(hy is integration and to,ards this end has initiated *ac2,ard integration in the field of high fashion *y setting u( a state of the art 'anufacturing facility to su((ort its retail endeavors

CHAPTER90 REVIEW OF

LITERARURE

REVIEW OF LITERATURE
DTi)miEi A'i Mu&$mm$ C Re&m$"9U)9 ?$*&i-C S$i- I.b$' M>F0886GH This (a(er investigates the relationshi( *et,een inde(endent varia*les ,hich are sho((ing lifestyle of consu'ers$ fashion involve'ent of consu'ers$ (re)decision stage and (ost)decision stage of consu'er (urchase *ehavior ,ith the attitudinal and *ehavioral as(ects of i'(ulse *uying *ehavior+ This study atte'(ts to e5(lore the association e5ists *et,een the varia*les involved$ *y ta((ing the res(onses of /87 res(ondents fro' higher inco'e grou( in the area of !a,al(indi and Isla'a*ad+ The 'aHor findings of the study de'onstrated an overall ,ea2 association of the set of inde(endent varia*les ,ith the de(endent varia*le *ut$ the in)de(th analysis found that (re) decision stage of consu'er (urchase *ehavior is the only varia*le that resulted into strong association ,ith the i'(ulse *uying *ehavior+ ItNs true that young (eo(le 'ore often get attracted to (roducts dis(layed on store shelves and has greater tendency of i'(ulse *uying *ehavior *ut results of this (a(er sho,ed no association of i'(ulse *uying in higher inco'e grou( of young (eo(le having (revalent i'(ulse *uying tendencies+ This study re(orted ne,

evidences in the field of i'(ulse *uying *ehavior of consu'ers (ertaining to the local 'ar2ets of the t,in citiesof Pa2istan+ DC&e"/ Hu$9C&i"/$ C&$"/ H*ie&9Iu$"F0884GH This study (ro(oses a social influence (ers(ective to co'(are the consu'ersN i'(ulse *uying *ehaviors *et,een Tai,an and China+ The social herding i'(ulse *uying factors are (ursuing fashion$ social nor'$ self) identity$ and consu'er e5(erience+ Ke use *ino'ial and 'ultino'ial logistic 'odel to understand ho, consu'ers influenced *y social herding factors so that they *eca'e i'(ulse *uying *ehavior and esti'ate the relationshi( *et,een the freFuency of i'(ulse *uying and herding factors+ The results are the consu'ersN i'(ulse *uying influenced *y social herding factors *oth in Tai,an and China+ The consu'ersN i'(ulse *uying in China and Tai,an ,ould *e influenced fro' different social herding factors+ Kith the freFuency of (urchasing$ consu'ers ,ould *e influenced fro' different social herding factors+ DGutie))eE Be" P$u' B>F088BGH The (a(er investigates factors influencing (lanned and i'(ulse (urchases in si5 (ersonal care (roduct categories+ This study utili;es a *ehavioral 'easure$ rather than an attitudinal 'easure of (lanned=i'(ulse (urchase+ %ata consist of <36 (roduct (urchases of 706 consu'ers in ur*an Phili((ines+ !esults sho, that (roduct category$ (urchase freFuency$ *rand co'(arison$ and age are significant factors influencing (lanned and i'(ulse (urchases+ There is no relationshi( found *et,een (lanned=i'(ulse (urchases and attitudinal sho((ing values$ surrogates for retail search strategies+ I'(lications for retail 'anage'ent are identified+ D?im Ji+e!"F088AGH In this study author investigates that due to increasing co'(etition and the si'ilarity of 'erchandise$ retailers utili;e visual 'erchandising to differentiate their offerings fro' othersN as ,ell as to i'(rove the desira*ility of (roducts+ The (ur(ose of this research is to e5a'ine the relationshi( *et,een college studentsN a((arel i'(ulse *uying *ehaviors and visual 'erchandising+ The result of the (resent study (roves that there is a (ivotal relationshi( *et,een college studentsN i'(ulse *uying *ehaviors and t,o ty(e of visual 'erchandising (racticesI instore for'='anneFuin dis(lay and (ro'otional signage+ This study (rovides infor'ation as to ,hy visual 'erchandising should *e considered an i'(ortant co'(onent of a strategic 'ar2eting (lan in su((ort of sales increase and (ositive store=co'(any

i'age+ This study also (rovides insights to retailers a*out ty(es of visual 'erchandising that can influence consu'ersN i'(ulse *uying *ehaviors+ DBue" i%&! P$t)i%i$F088AGH The author identifies that I'(ulse (urchasing has *een a focus of 'ar2eting research since the si5ties+ !esearchers have atte'(ted to e5(lain i'(ulse (urchasing ,ith the sciences of (sychology and even (hiloso(hy+ Previous research has failed to co'e u( ,ith a 'odel for such$ (erha(s *ecause of the intangi*ility of (sychological traits of i'(ulsivity or the rationality in ,hich (hiloso(hy has its roots in+ #et it is a (revalent (heno'enon in the daily life of the average consu'er$ you and 'e+ E'(irical studies have reached no consensus either$ and adding the confusion are the 'any definitions if i'(ulse (urchasing and 'any (roducts of different (ur(oses and (rices+ There e5ists no 'odel that serves as an effective (redictor of an i'(ulse *uy+ It see's that the (heno'enon of i'(ulse (urchasing has 'anaged to evade+ This study focuses on e5(laining i'(ulsive sho((ing through trends *y testing the validity of hy(othetical relations *et,een socioecono'ic factors such as gender$ ,ealth$ age$ residence$ (resent co'(any and i'(ulse sho((ing+ Vualitatively$ this is a case study in ,hich ,e e5(lore ,hat (eo(le (urchase and their (ersonal reasons+Vuantitatively$ ,e set out to find (redictors as ,e e5a'ine ,hat 'a2es Orlando sho((ers o(en their ,allets on the s(ot+ DM$i Tu+et T&i N/u+e"C ?3!" Ju"/C L!eb S$" )$C L$"tE G$)!' F0887GH The author (ro(oses that the econo'y transition in ietna' has created 'any changes including the changes in consu'er values and the retail environ'ent+ This significantly affects consu'er *uying *ehaviors+ I'(ulse *uying is very interesting and i'(ortant consu'er *ehavior that has attracted a lot of research effort in the ,orld+ This (a(er e5a'ines several factors influencing the i'(ulse *uying *ehavior of ur*an ietna'ese consu'ers+ A consu'er survey ,as conducted in t,o 'aHor cities of ietna'I Hanoi and Ho Chi >inh City+ The results su((ort the hy(otheses that *uying i'(ulsiveness$ sho((ing enHoy'ent tendency$ and level of 'odern)self are (ositively related to i'(ulse *uying+ Ho,ever$ the level of traditional)self (erce(tion is not found to *e significantly related to i'(ulse *uying *ehavior+ Other findings regarding the i'(act of de'ogra(hic varia*les are also re(orted+ DR!!= De""i* W>$Fi*&e)C R!be)t J>F766@GH The author e5a'ines that although consu'er researchers have investigated i'(ulse *uying for nearly 70 years$ al'ost no research has

e'(irically e5a'ined its nor'ative as(ects+ This article (resents conce(tual and e'(irical evidence that consu'ers. nor'ative evaluations ?i+e+$ Hudg'ents a*out the a((ro(riateness of engaging in i'(ulse *uying *ehavior@ 'oderate the relationshi( *et,een the i'(ulse *uying trait and consu'ers. *uying *ehaviors+ "(ecifically$ the relationshi( *et,een the *uying i'(ulsiveness trait and realted *uying *ehaviors is significant only ,hen consu'ers *elieve that acting on i'(ulse is a((ro(riate+ The findings fro' t,o studies across student and retail custo'er sa'(les converge and su((ort the hy(othesi;ed 'oderating role of consu'ers. nor'ative evaluations+ D?!''$tC Wi''etCF7645GH defined the first categories of i'(ulse (urchases as follo,sI Brand decidedM category decidedM (roduct class decidedM general need recogni;ed ?i+e+ need a *irthday gift@M general need not recogni;ed+ The latter has no (lanning ,hatsoever and is there fore recogni;ed as (ure i'(ulse (urchasing ?Bayley@+ The (heno'enon regained attention in the eighties$ ,here the e5(eriential as(ect of i'(ulse sho((ing itself *egan to *e e5(lored+ Engel and Blac2,ell defined i'(ulse (urchasing as &a *uying action underta2en ,ithout a (ro*le' (reviously having *een recogni;ed or *uying intention *een for'ed *efore entering the store+-?Engel+@ This is the 'ost ,idely acce(ted definition of i'(ulse sho((ing+

CHAPTER9A RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY
!esearch 'ethodology is a ,ay to syste'atically solve the research (ro*le'+ It 'ay *e understood as a science of studying ho, research is done scientifically+ TITLE 9 Jactors affecting i'(ulse *uying *ehavior in J>C1 sector ,ith s(ecial reference to *ig Ba;aar and ishal >ega 'art in Chandigarh G around region+ The research 'ethodology ,as divided into t,o stages ,hich involve t,o sources for collecting the data in order to achieve the o*Hective of (roHect+ /+ Collecting data regarding the (otential custo'ers fro' the e5isting outlets of Big Ba;aar G ishal >ega 'art+ 6+ Collecting the (ri'ary data directly ,ith the custo'er ,ith the hel( of the Fuestionnaire FRe-e) A""e;u)e97G

The research 'ethodology ,as divided into t,o stages ,hich involve t,o sources for collecting the data in order to achieve the o*Hective of (roHect+ Ke have ta2en into consideration a &+,!t&eti%$' %!"*ume) im,u'*e bu+i"/ be&$(i!) m! e' ,hich has *een 'entioned in conclusion and findings (art+ RESEARCH DESIGN: A research design is an arrange'ent of conditions for collection and analysis of data in a 'anner that ai's to co'*ine relevance to the research (ur(ose ,ith econo'y in (rocedure+ A good research design has the characteristics vi; (ro*le' definition$ s(ecific 'ethod of data collection and analysis$ a research design is (urely and si'(ly the fra'e ,or2 or (lanned for a study that guides the collection and analysis of data+ In this research E5(loratory research 'ethod is ado(ted+

SAMPLE DESIGN: A sa'(le design has *een defined as a definite (lan for o*taining a sa'(le fro' a given (o(ulation+ In this (roHect Mu'ti St$/e S$m,'i"/ is used *ecause the total (o(ulation ,as too large and due to ti'e constraint it ,as not (ractically (ossi*le to 'a2e a list of entire (o(ulation+ At first stage I have divided sa'(le area ,ise and then further divided it into inco'e status so that I can get correct and related infor'ation+ QRS$m,'i"/ U"itI ishal >ega 'art and Big Ba;aar Custo'ers QRS$m,'i"/ SiEeI /00 (otential custo'ers QRS$m,'i"/ te%&"i.ueI >ultistage sa'(ling QRS$m,'i"/ $)e$I Chandigarh and around region QRC!"t$%t Met&! I Personal Contacts DATA COLLECTION: Both (ri'ary data and secondary data have *een used for the (ur(ose of data collection+ Pri'ary data has *een collected *y conducting survey ,ith the hel( of a Fuestionnaire+ Vuestionnaires ,ere for'ed as to search the s(ecific varia*le on ,hich o*Hectives de(ends+

"econdary data on the other hand are those data ,hich have already *een collected *y so'eone else ,hich have already *een (assed through the statistical (rocess+

OB EC!IVES OF S!U"#
To understand and analyze various factors influencing sales promotion program in retail industry.

To know the factors which influence the purchase decision.

To measure the sales promotion effectiveness in retail ndustry.

t attracts the brand switchers and increases the sales volume.

SCOPE OF !HE S!U"# The scope of the study gives an idea to develop the sales promotion activities in retail industry. t involves the evaluation of the present promotional activities. !ith the help of the study we can give suggestion regarding sale promotion and services offered by the retail industry. The study brings an awareness of the sales promotional activities by advertising in an accepted media.

LIMITATIONS OF THE STUDY: In atte'(t to 'a2e this (roHect authentic and relia*le$ every (ossi*le as(ect of the to(ic ,as 2e(t in 'ind+ Nevertheless$ des(ite of fact constraints ,ere at (lay during the for'ulation of this (roHect+ The 'ain li'itations are as follo,sI %ue to li'itation of ti'e only fe, (eo(le ,ere selected for the study+ "o the sa'(le of consu'ers ,as not enough to generali;e the findings of the study+ The 'ain source of data for the study ,as (ri'ary data ,ith the hel( of self) ad'inistered Fuestionnaires+ Hence$ the chances of un*iased infor'ation are less+ Peo(le ,ere hesitant to disclose the true facts+ The chance of *iased res(onse canNt *e eli'inated though all necessary ste(s ,ere ta2en to avoid the sa'e+

CHAPTER9B DATA

ANALYSIS & INTERPRETATION

DATA ANALYSIS
Dem!/)$,&i% ,)!-i'e !- )e*,!" e"t* %escri(tive (rofile of res(ondents ?nW/00@ GENDER Fi/>B>7> Dem!/)$,&i% $t$ -!) /e" e)*

The a*ove gra(h inferences that 'ost of the ti'e 'ale genders are the one ,ho goes for i'(ulse *uying decision i+e+ 334 are 'ale res(ondents in our research ,hile fe'ale co'(rises of only /64 of the total res(ondents+ AGE Fi/>B>0> Dem!/)$,&i% $t$ %!"*i e)i"/ i--e)e"t $/e /)!u,* Jro' the gra(h its easily visi*le that the age grou( 60)67 are the one ,ho go 'a5i'u' ti'es for i'(ulse *uying since this is the age grou( ,hen they are 'ost active having so'e (o,er of (urchasing too+

OCCUPATION Fi/>B>A> Dem!/)$,&i% $t$ %!"*i e)i"/ t&ei) !%%u,$ti!"*

Jro' the gra(h its clear that 'ost of the i'(ulse *uying is *eing done *y students ,hich co'(ro'ises of 7/4 of total /00 res(ondents 6B4 is for the services (roviding (eo(le and 60 4 to the *usiness oriented (erson and at last only 84 co'(rises of house ,ifeNs+

F$%t!) A"$'+*i* -!) -$%t!)* $--e%ti"/ im,u'*e bu+i"/ e%i*i!" !- C!"*ume)* To continue to,ards the 'ain analysis$ factor analysis has *een (erfor'ed to identify the 2ey di'ensions affecting (urchase of J>C1 (roducts (rovided at these retail stores+ The res(ondent ratings ,ere su*Hect to (rinci(al a5is factoring ,ith vari'a5 rotation to reduce (otential 'ulticollinearity a'ong the ite's and to i'(rove relia*ility on the data ?!efer Ta*le 8I !otated Jactor >atri5@+ ari'a5 rotation ?,ith Daiser Nor'ali;ation ,as converged in t,enty si5 iterations+ T,enty "i5 ite's ,ere reduced to seven orthogonal factor di'ensions ,hich e5(lained :6+B7:4 of the overall variance ?!efer Ta*le C@ indicating that the variance of original values ,as ,ell ca(tured *y these seven factors+ The seven factors and their co'(onents is given in ta*le :+ ?!efer Ta*le :@ Re'i$bi'it+ !- D$t$ F?MO $" B$)t'ettJ* Te*tG Analysis done ,ith the hel( of statistical soft,are "P""

Daiser)>eyer)Ol2in >easure of "a'(ling AdeFuacy+ Bartlett.s Test of "(hericity T$b'e B>7> ?$i*e)9Me+e)9O'=i" A((ro5+ Chi)"Fuare %f "ig+

+807 /B/3+</8 +B67 +000

XInde5 for co'(aring the 'agnitudes of the o*served co)relation coefficient to the 'agnitude of the (artial correlation coefficientsY Jro' the a*ove ta*le$ ,e can inter(ret that there is no error in 80+74 of the sa'(le and in the re'aining B<+74$ there 'ay occur so'e sort of error+ B$)t'ett2* Te*t !- S,&e)i%it+ "trength of relationshi( a'ong varia*les is strong+ It (resents good idea to (roceed to factor analysis for the data+ H!: There is significant indifference of all the factors affecting i'(ulse *uying decision H7: There is significant difference of all the factors affecting i'(ulse *uying decision The o*serve significance level is 0+0000 ,hich is less than +07$ ,hich is s'all enough to reHect the hy(othesis+ It 'eans there is a significant difference *et,een the factors affecting i'(ulse *uying decisions+

C!mmu"$'it+H9 C!mm!" F$%t!) V$)i$"%e Co''unality of each state'ent refers to the variance *eing shared or co''on *y other state'ents+ Kith reference to the first state'ent$ the e5traction is +8B< ,hich indicates that 8B+<4 of the variance is *eing shared or co''on to other state'ents+ ?!efer Ta*le 6+@ DEi/e" V$'ueHI Indicates the a'ount of variance in the original varia*les accounted or *y each co'(onent+ The total initial variance in the ne, co'(onents ,ill *e 68 T$b'e B>0: C!mmu"$'itie*
C!mm!" F$%t!) ($)i$"%e

T$b'e B>A>: T!t$' V$)i$"%e E;,'$i"e

C!m ,!"e "t I"iti$' Ei/e"($'ue* E;t)$%ti!" Sum* !S.u$)e L!$ i"/* R!t$ti!" Sum* !- S.u$)e L!$ i"/*

T$b'e B>B>: Di*t)ibuti!" i" i--e)e"t %!m,!"e"t* Co'(onent / E5(lain a variance of C+:B7$ ,hich is /3+6/B4 of the total /3+6/B4

Co'(onent 6 Co'(onent B Co'(onent C Co'(onent 7 Co'(onent 8 Co'(onent :

variance of 68 E5(lain a variance of B+B03$ ,hich is /6+:6C4 of the total variance of 68 E5(lain a variance of B+/03$ ,hich is //+<774 of the total variance of 68 E5(lain a variance of 6+860$ ,hich is /0+0:<4 of the total variance of 68 E5(lain a variance of /+:BC$ ,hich is 8+8:04 of the total variance of 68 E5(lain a variance of /+87C$ ,hich is 8+B8B4 of the total variance of 68 E5(lain a variance of /+876$ ,hich is 8+B7B4 of the total variance of 68

B0+<B:4 C6+3<64 76+<:/4 7<+8C/4 88+00C4 :6+B7:4

Fig 4.4. Screen plot for the Factor Analysis

Kith the hel( of Ta*le B and C$ ,e can inter(ret that 68 state'ents are no, reduced to : co'(onents contri*uting :6+B7:4 of the total variance+ Kith the hel( of JigC+ "creen (lot$ ,e can Hust visuali;e that : factors are reduced ,ith Eigen value greater than /+0000

T$b'e B>@> C!m,!"e"t M$t)i;: This ta*le re(orts the factor loadings for each varia*le on the unrotated co'(onents or factors+ C!m,!"e"t 7 / 6 B C 7 8 : 3 < /0 // /6 /B /C /7 /8 /: /3 /< 60 6/ 66 6B 6C 67 68 +83< )+06: )+0C7 +//< +:33 +:78 +:87 +8:8 +87C +30: +3/8 +86< +CCB +8C: +:B< +BC8 +BB/ +B63 +C60 +BC0 +C<8 +808 )+08: +C07 +C<6 +7B3 0 +6/C +0C8 +C3: +800 )+0<8 )+/60 )+0B7 )+/<8 )+0<< )+/08 +0C7 )+6/6 +B/C +63: +03: +67< )+:60 )+:CC )+88C +C00 +C63 +/3B +7BB +/76 +0// +B/B A )+08C +:CC +/8: +)0C3 +0:C +0</ )+003 )+//B +/80 +0:7 )+/3< )+0B3 )+6B: +/83 )+0B7 +0<B )+/70 +077 )+/8: )+7C: )+B83 +B0: +/8< +C:C +7C0 )+6B< B )+086 +B:B +/:< )+C:C +/8C )+0C3 +68C )+C:8 )+63B +03C )+006 )+/C/ +7B8 +C/0 +6</ +0<B +B68 )+037 )+/// )+0<C +0C/ )+676 )+070 )+6C< )+66< )+/0< @ )+660 +//8 +C66 +/:C +)/<7 +006 +/<: +/0B )+63/ )+/CB +6:/ +66/ +666 )+0B0 )+0C/ )+808 )+0C/ +0:/ +/0C )+0B8 +07C +6B7 )+6:3 +C6< )+6<: )+/BC 4 )+0</ +08/ )+0/0 +C60 +667 )+0/B +B7: +//B +/6< )+0:6 )+003 +/87 )+/68 )+/7< +/C7 +/CB +/:/ +0:C )+//7 +0C7 )+066 )+B38 +C6/ +03< )+6</ )+7CC 5 +6B/ +B0/ )+C/6 +068 )+0/: )+/B< )+06B )+6<6 )+0</ )+08: )+67B +6C0 )+6/0 +687 +)6/: )+0C3 +06/ )+063 +636 +678 +B<B )+0/7 )+060 +6<3 )+/CB )+06B

E5traction >ethodI Princi(al Co'(onent Analysis+ Each nu'*er re(resents the correlation *et,een the ite' and the unrotated factor+ This correlation hel(s to for'ulate an inter(retation of the factors or co'(onents+ This is done *y loo2ing for a co''on thread a'ong the varia*les that have large loadings for a (articular factor or co'(onent+ It is (ossi*le to see ite's ,ith large loadings on several of the unrotated factors$ ,hich 'a2es inter(retation difficult+ In these cases$ it can *e hel(ful to e5a'ine a rotated solution+ T$b'e B>4: R!t$te C!m,!"e"t M$t)i;

E5traction >ethodI Princi(al Co'(onent Analysis+ C!m,!"e"t 7 / 6 B C 7 8 : 3 < /0 // /6 /B /C /7 /8 /: /3 /< 60 6/ 66 6B 6C 67 68 +B0/ +067 +6</ +0// +87B +77: +3/3 +CBB +B67 +7:< +:70 +B33 +830 +C37 +::7 +/<3 +C63 +6B3 +/C7 +/C7 +677 +6C7 )+063 +/CC +/0< +/3/ 0 +/76 )+0:3 )+8:C )+B30 +B/0 +68C +6/8 +B6B +6<7 +6<6 +/0/ +C:B )+638 )+06C +0B3 )+033 +:0/ +:/6 +3/B )+0CB )+0/< )+0B0 )+CB8 +0C: +07C )+037 A +B<0 +077 +0C/ +007 +6B/ +C7C +0B6 +CC/ +C88 +C7C +BC8 +/30 +00B +6<B +/37 +/8: )+/3< +/6B +/7/ )+08C +0CC +:80 )+/63 +B:C +:<7 +7:B B +76: )+6/: )+/63 +67/ +/BC +0:/ +/7B )+0/B +0/B +/88 +6C0 +668 +BB0 +C8/ +/73 +/7B )+/73 )+B0/ +/07 +:B0 +:<C +/38 +0C6 +03: )+/B/ +780 @ +030 +0/C +0<: +:C3 +0:/ +/// +6B6 +C03 +6C0 )+0C6 +/:/ +B7< )+67< )+/BC )+0/7 )+0<0 )+6B0 +06< )+0/0 +/8B +/7B +/<7 +6<8 +737 )+00B )+/<: 4 +0C: +386 +0:/ )+/C: +0<C )+0BB +/C< )+CB: )+/0: +0BB )+603 =0:7 +063 +C:0 +00B +0// +00B )+077 )+0B3 )+6C6 +0BC +/C6 +038 +C8B +/C6 )+66B 5 +6<7 +0C< )+6:/ +/B8 +B3/ +/0: +037 +0/6 +C// +6/: )+/BC )+08B )+/8C +/CB +6/: +8<3 +003 )+0<3 )+608 +03: +0C6 )+/30 +760 )+/8B +B/0 )+00/

!otation >ethodI ari'a5 ,ith Daiser Nor'ali;ation+

With the hel( of ta*le 8$ ,e can categori;e each state'ents de(ending u(on the factor loadings and sho,n in ta*le:+ T$b'e B>5>: F$%t!)* F$%t!) 7: S@ :Advertise'ent of (roduct in (rint and visual 'edia S4 : arious (ro'otional activities regarding (roduct ": I Hording and (a'(hlets of (roduct S78 :Pac2aging of (roduct "// I Placing of (roduct in store "/B I E'otional attach'ent ,ith (roduct "/C I Behavior of sales (erson "/7 I Po(ularity of (roduct "/:I The (erson ,ith ,ho' you are going for sho((ing

F$%t!) 0: SA : arious sche'es li2e ?*uy / get / free@ "/6I Co'(ati*ility of another (roduct ,ith the (roduct you are *uying "/3I Influenced *y other (eo(le "/<I Dind of (roduct ,hich you are *uying

F$%t!) A: S1 : Any event organi;ed *y organi;ation S6 : %is(lay of (roduct in store S00 :#our (erce(tion a*out saving and invest'ent S0@ :Traditions and custo's

"68 I arious festival discounts on (roduct

F$%t!) B: S7 :Price of (roduct S08 :#our inco'e status S07 :"tandard of living

F$%t!) @: SB :Availa*ility of (roduct S0B :!eFuire'ent of (roduct in festival season

F$%t!) 4: S0 :%iscount offers regarding (roduct

F$%t!) 5: S74 :Changing trends in society S0A :"(ecial occasions

T$b'e B>1>: C!m,!"e"t S%!)e C!e--i%ie"t M$t)i; C!m,!"e"t @ 4 )+/08 )+07/ )+08< )+0/3 +00< )+067 +0:< )+B38 )+00/ )+0/0 +080 )+0B7 +)0B7 +0/8 )+/37 )+/60 +007 +6CC )+063 +06< )+00: +00B +6/6 )+6C0 +0C: +0<: +/8< )+0B7 )+0/: )+0B: +6C0 )+/6< )+0/6 )+B07 +07: +/70 )+0BB +/8C +0B< +078 +0C6 )+07C +/73 +0:/ )+/:< )+063 +C:0 )+0:8 )+003 +//8 +/C: )+008 +00/ +06: +63< +000 +//6 )+/06 +0:3 +/:0

7 "/ "6 "B "C "7 "8 ": "3 "< "/0 "// "/6 "/B "/C "/7 "/8 "/: "/3 "/< "60 "6/ "66 "6B "6C "67 "68 "6: "63 "6< "B0 +0/< +086 +07/ +068 +066 )+0B/ +0/0 +0// +//< )+077 +0C0 +0B0 +0<< )+066 +00: )+0C3 )+0/B +0C3 )+/// )+030 )+0C0 +0B: +06/ +0:B +B6< )+06: +6</ )+0:/ +6<7 +/70

0 )+0<8 +08C )+//B )+0/0 )+/CC +668 +0B/ +08C )+//6 +68/ +636 )+0// +066 +0/0 +030 )+0B: +/C< +03: )+00: +0BC +00/ )+006 +00/ +068 )+06B +077 +0C: )+0/3 )+0C6 +/7B

A +/:< +/8C +/<B +036 +606 )+/07 +00< +C00 +/07 +03/ +067 )+0:7 +000 )+0<< +03C +0<6 +/C3 +/C7 )+0// +03/ +063 +008 +0:8 )+/C8 )+06< +/C3 +08: )+0B6 +0/3 )+08/

5 +BC: )+B38 )+073 )+03C +086 +/06 )+07B )+0</ )+/:: )+0:C )+03: )+070 +636 )+//0 +03C +0B/ +060 )+0C< )+00C )+00/ )+/B0 )+0:: )+066 +0/0 )+0C0 +037 )+0C/ +0:< +0/3 )+//: )+0C6 )+00/ +0BC +/B6 )+07C )+030 +003 )+07C )+0<: )+/8B +//8 )+/3: )+/00 +/:7 +083 +0<< +0C8 +0/< +07C )+78B +63< )+6/< +06/ )+083 +0:8 )+6C3 +08/ )+00C +/67 +/0<

1 )+0<C +/00 +//< )+060 )+0/: +/0/ +0B7 +/// )+/<B )+/0/ +07< +/8C )+0CB +/0B +/70 )+B// )+063 )+600 )+068 +0:7 +070 +B73 +CCC +0B7 +/B0 +0:< +0/B )+670 +00/ +60/

6 +60< +/:C )+0BB )+/60 +668 +/C< +086: +087 +/66 +0B7 )+06B +/6C )+0/0 +0:3 +0C/ +03C )+/C: )+/</ )+03: )+08: )+/B< )+/<8 +/:/ )+0:< )+06/ )+667 +00B +0B< )+0CC )+/B6

Jro' the ta*le 3 of co'(onent score coefficient 'atri5$ ,e can o*tain the Fuantifia*le data of each factor+ The coefficients *et,een the state'ents and the factors are ta2en according to the state'ent affecting the factor ?on the *asis of Ta*le :@

CHAPTER9@ CONCLUSIONS

AND SUGGESTION

CONCLUSIONS AND FINDINGS

"ince Indian retail 'ar2et is continuously increasing$ (eo(le are (urchasing goods as there is increase of inco'e of co''on (eo(le as ,ell as change in tastes and (references of consu'ers+ It is i'(ortant for the retail (layers to *e a*le to understand the different factors affecting the e5tent in i'(ulse *uying *ehavior+ The factor analysis results indicate that F$%t!) 7 ?Ta*le :@ ,hich consists of Infor'ation (rovided *y custo'ers ) Advertise'ent of (roduct in (rint and visual 'edia$ arious (ro'otional activities regarding (roduct$ Hording and (a'(hlets of (roduct$ Pac2aging of (roduct$ Placing of (roduct in store$ E'otional attach'ent ,ith (roduct$ Behavior of sales (erson$ Po(ularity of (roduct$ The (erson ,ith ,ho' you are going for sho((ing are the 'ain factors for i'(ulse *uying *ehavior ,hich *roadly defines a*out the Em!ti!"$' $,,e$' !$ (e)ti*eme"t*>

F$%t!) 0 includes various sche'es li2e ?*uy / get / free@$ Co'(ati*ility of another (roduct ,ith the (roduct you are *uying$ Influenced *y other (eo(le$ Dind of (roduct ,hich you are *uying Custo'erNs i'(ulse *uying decision causing a variance of B+B03+This sho,s that i'(ortance of influence of other (eo(les on *uying *ehavior of custo'ers+ F$%t!) A$ includes fro' Ta*le): $Any event organi;ed *y organi;ation C %is(lay of (roduct in store$ #our (erce(tion a*out saving and invest'ent$ Traditions and custo's$ various festival discounts on (roduct$ ,hich in totally sho,s the direct i'(act (roduct (lace'ent in the stores in a retail outlet li2e ishal >ega 'art G Big Ba;aar+ F$%t!) B includes Price of (roduct$ your inco'e status$ and "tandard of living$ ,hich clearly defines the individual (urchasing (o,er+ Continuing ,ith the ne5t factor) F$%t!)* @ includes Availa*ility of (roduct$ !eFuire'ent of (roduct in festival season ,hich sho,s that discount offers during festival seasons attract custo'ers for their i'(ulse *uying *ehavior+ Khile F$%t!) 4 includes %iscount offers regarding (roduct$ focusing on effective (rice and discount strategies ,hich is in *rought *y the retail (layers in order to attract there (otential custo'ers+ At last F$%t!) 5 includes Changing trends in society$ s(ecial occasions ,hich signifies that ho, 'uch today also (eo(le give (references to the traditions and rituals during festival season that it has created a e'otional *ond ,hich results in i'(ulse *uying *ehavior+ Overall$ various internal and e5ternal factors affects the i'(ulse *uying *ehavior of the consu'er ,hich is e5(lained *y the a*ove findings Fi/ @>7>

IMPULSE BUYING BEHAVIOR MODEL

Although the study ,as conducted on a s'all (o(ulation to find I'(ulse Buying Behavior of the consu'er In ishal >ega 'art and Big Ba;aar$ the finding of the studies can *e generali;ed to the ,hole (o(ulation+ It can *e very co'forta*ly inferred thatI /+ E'otional a((eal of advertise'ents 6+ Brand i'age of the (roduct B+ Product (lace'ent in the store C+ Inco'e of the custo'er 7+ arious festival seasonal discounts 8+ Effective (ricing and discount strategy :+ E'otional Bonding and usage of the (roduct in festivals affect i'(ulse *uying *ehavior of the consu'er very strictly+ The Indian 'ar2etersN has to go a long ,ay to understand the i'(ulse *uying *ehavior as it is a very su*Hective and its de(ends on 'ulti(le factors$ *ut 'ar2eters can ta2e advantage for this *ehavior and in al'ost every (roduct category i'(ulse *uying ,itness+

BIBLIOGRAPHY

Re-e)e"%e*:
Alice Hanley and >ari "+ Kilhel' ?/<<6@+Co'(ulsive *uyingI An e5(loration into self estee' and 'oney attitudes+ Journal of econo'ic Psychology /B7)/3+ A R nHa "chaefer G Andre, Crane ?June 6007@ > Addressing "ustaina*ility and Consu'(tion+ Journal of 'acro 'ar2eting + ol 67$ No+/$ :8)<6+ Ann Eli;a*eth Ericson$ ?600/@ University of Io,a &Antecedents of older adolescentNs credit card enhanced s(ending attitude and self re(orted financing *ehavior-+ Aviv "hoha' and >aHa >a2ovec Brencic ?600B@+ Co'(ulsive *uying *ehavior+ Journal of consu'er 'ar2eting$ ol 60$ No+6+

 Celia ray Hayhoe$ Lauren Leach$ G Pa'ela !+ Turner ?/<<<@+ %iscri'inating the nu'*er of credit cards held *y college students using credit and 'oney attitudes+ Journal ofEcono'ic Psychology 60$8CB)878+ 1 R ordon C+Kinston ?/<3:@+ A ne, a((roach to econo'ic *ehavior+ Journal of Econo'ic *ehaviour and organi;ation$ 3$78:)737+ Hans Bau'gartner$ Jan Benedict G E+>+ "teen2a'(?/<<8@+ E5(loratory consu'er *uying *ehaviorI conce(tuali;ation and 'easure'ent+International Hournal of !esearch in 'ar2eting$ /B$/6/)/B:+
Tir'i;i Ali >uha''ad$ !eh'an)Ur) Dashif$ "aif IF*al >+?600<@+ An E'(irical "tudy

of Consu'er I'(ulse Buying Behavior in Local >ar2ets$ ol+63 No+C $ ((+766)7B6 Cheng Hua)ChingC Chang Hsieh)Vuan?6008@ ol /6$No+6$ B8)CC
1utierre; Ben Paul B+?600C@

ol+B$ no+/?"e( 600/$(ages 6BC)BC8@ ol6<$no+8$?>ay

>ai Tuyet Thi Nguyen$ D,on Jung$ Loe* "andra$ Lant; 1arold?600/@

/<<<$(agesIB:C)B<3@

Web*ite*:
Rhtt(I==,,,+chinadaily+co'+cn=en=doc=600B)0<=67=contentZ68:C<0+ht' Rhtt(I==,,,+indiainfoline+co'=(efi=feat=cred+ht'l ,,,+(antaloon+co' , R ,,+vishal'ega'art+co' , R ,,+futuregrou(+co' , R ,,+'ar2etresarch+co'

ANNEKURE

QUESTIONNAIRE Na'e [[[[[[[[[[[[[[[[[[[[[[[[[++ Age [[[[[[[[[[[[[[[[[[[[[[[[[[+ 1ender ) MALE L FEMALE Occu(ation [[[[[[[[[[[[[[[[[[[[[[[+ According to you$ ,hich of these factors affect your i'(ulse *uying *ehavior for J>C1 (roducts

SA 7> PRICE AND DISCOUNT Attractive (rice of (roduct affects 'y i'(ulse *uying *ehavior %iscount offers regarding (roduct attracts 'e arious sche'es li2e ?*uy / get / free@ affects 'y *uying *ehavior (ositively Availa*ility of discounted (roducts 'otivates 'e to *uy

DA

SDA

0> POINT OF PURCHASE ADVERTISEMENT AND SALES PROMOTION Advertise'ent of (roduct in (rint and visual 'edia attracts 'e to *uy arious (ro'otional activities regarding (roduct 'otivates to *uy the (roducts Hording and (a'(hlets of (roduct hel( 'e in i'(ulse *uying Any event organi;ed *y organi;ation affects 'y *uying *ehavior A> VISUAL MERCHANDISING %is(lay of (roduct in store attracts 'y attention Pac2aging of (roduct attracts 'e to *y the (roducts Placing of (roduct in store gains 'y attention to,ards it Co'(ati*ility of another (roduct ,ith the (roduct you are *uying

B> EMOTIONAL ATTACHMENT

E'otional attach'ent ,ith (roduct is a 'otivational factor to *uy (roduct Behavior of sales (erson affects 'y *uying *ehavior Po(ularity of (roduct increases recall value and hel(s in i'(ulse *uying Changing trend in society is a 'aHor factor in i'(ulse Buying

@> COMPANY The (erson ,ith ,ho' you are going for sho((ing influences 'y *uying *ehavior Co''ents of reference grou( influence 'y *uying *ehavior Dind of (roduct ,hich i a' *uying

4> INCOME #our inco'e status affects 'y i'(ulse *uying *ehavior "tandard of living has a role to (lay in *uying (roducts #our (erce(tion a*out saving and invest'ent 5> FESTIVAL SEASON "(ecial occasion 'otivate 'e to *uy !eFuire'ent of (roduct in festival season (ro'(ts 'e to *uy Traditions and custo's triggers 'y (urchase decision arious festival discounts on (roduct induces (urchase of (roduct