Executive Summary:Consumer behavior refers to the mental and emotional process and the observable behavior of consumers during searching, purchasing and post consumption of a product or service. Consumer behavior involves study of how people buy, what they buy, when they buy and why they buy. It blends the elements from psychology, sociology, sociopsychology, anthropology and economics. It also tries to assess the influence on the consumer from groups such as family, friends, reference groups and society in general. Buyer behavior has two aspects: the final purchase activity visible to any observer and the detailed or short decision process that may involve the interplay of a number of complex variables not visible to anyone. The traditional family run convenience stores serves the purpose of the housewives who definitely wants to avoid traveling long distances to purchase daily needs. The convenience factor in terms of items, among people in general can be highlighted as below:     Groceries Fruits Drug Store Necessary stationery

Factors Affecting Consumer Buying Behavior
Consumer buying behavior is influenced by the major three factors: 1. 2. 3. Social Factors Psychological Factors Personal Factors.

Consumer decision-making process generally involves five stages:-

Retail outlet selection and brand selection:There are three fundamental patterns, which a consumer can follow and they could be: (I) Brand first, retail outlet second (ii) Retail outlet first, brand second (iii) Brand and retail outlet simultaneously.


Customer service and satisfaction Place and capacity (Big). Diligent area coverage Disciplined work schedule. Environment and ambience in the store is good. Marketing, Sales & Promotional campaign etc.

OBSERVATION:In organized retail store Vishal mega mart we observe that there is much variety, assortment, place & capacity is there so whenever customer come in store they feel comfort or relax inside the store rather than unorganized store. Organized Vishal mega mart retail store provide much more offers & discount for the customer rather than Kirana stores. So why customer prefer to Mom & Pop shops if organized store are providing them good product with good facilities.



 Credit policy.  Less choice.  Private Brands and National Brand as well.  List sticking.
 Sopping from nearest store either it is Organized or unorganized. (And Unorganized stores

are located in various locations so its advantage for them.  Les capacity or coverage.  Store loyalty.  Replacement policy is better than organized store.

OBSERVATION:In unorganized retail store or Mahajan Bro. Kirana store in Devitalan temple, Jalandhar. In that particular store customer used to come from many years. It’s like Store loyalty for the customer from that Kirana store for so long time. And big advantage is Govt. favor them or all Kirana stores in form of Taxation. Credit policy is also makes difference from the organized store.

Interview of Managers or Owner:-

Store Manager of Organized Store Vishal Mega Mart:According to him Organized concept is in India is quite new for maximum no. of the customers but by the passing time they are getting awareness from advertisement, marketing etc. toward the malls,

supermarket, hypermarket etc. It’s new concept so now customer are trying to visit the store and through to this organized stores footfall is going to increase even there are so many customers who used to come for window shopping purpose but its fact if in India there is any new things will come then all people try to come to know about it like they like crowd as well.

Unorganized Retail Format Shop Owner:According to him in middle class customer purchase the goods from them but they expect for credit because they are store loyal customer and owner have to give them credit just because to exceed the business if he/she will not give them credit then why they will come from them. So owner think that our business is all about based upon credit and replacement etc.

Findings:1. Customer’s preferences for grocery shopping are gradually shifting from local kirana stores to organized convenience stores. 2. Age is one of the most important factors responsible for the changing preference of customers. 3. Payment through credit cards is increasing purchases from convenience store. 4. Brand Choice of customers is changing and this is also influencing shift from kirana to convenience store. 5. Maximum no of customers belongs to young age group. 6. Maximum no of customers are male in malls due to family responsibility. 7. Maximum no of customers having nucleur family. 8. Maximum no of customers are educated and aware about retail store.

9. Maximum no of customers are belonging to upper middle class.

Maximum no of customer are preferred Shopping Malls for purchasing.


The shopping malls & retail outlets are targeting to middle class customers because the

purchasing power of this class is rapidly growing as well as the class is also growing.

The young generation is fashion & show-off conscious so retail outlets are mainly

focused on them.

Most of the family wants to purchase from big showrooms and malls because there are no

bargaining system so the have a trust that there is no cheating.

The main strength of most of the retail outlets are providing attractive offers to attract


Big retail stores are running customer loyalty programmes which has increased profits

and no. Of customers.

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