OF

(Consumer Behavior Towards Organized Retail Stores

Vs Mom & Pop stores)

SUBMITTED TO

Department of management Lovely Professional University

Phagwara

SUBMITTED BY:-
SUBMITTED To:-

Name- Ahmad ali

Mr.Sonu Dua

Roll No-RS1904A07

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Regt.No-10905794

Acknowledgment
I take this opportunity to present my vote of thanks to all those
guidepost who really acted as lightening pillars to enlighten our
way throughout this project that has led to successful and
satisfactory completion of this study.

We are really grateful to our COD Mr.Devdhar Shetty for

providing us with an opportunity to undertake this project in
this university and providing us with all the facilities. We are
highly thankful to Mr.Sonu Dua for his active support, valuable
time and advice, whole-hearted guidance, sincere cooperation
and pains-taking involvement during the study and in
completing the assignment of preparing the said project within
the time stipulated.

Lastly, We are thankful to all those, particularly the various

friends , who have been instrumental in creating proper,
healthy and conductive environment and including new and
fresh innovative ideas for us during the project, their help, it
would have been extremely difficult for us to prepare the
project in a time bound framework.

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Abstract
The retail business, in India, is estimated to grow at 13 per cent
per annum from US$ 322 billion in 2006-07 to US$ 590 billion in
2011-12. The unorganized retail sector is expected to grow at
about 10 per cent per annum from US$ 309 billion 2006-07 to
US$ 496 billion in 2011-12. Organized retail which now
constitutes a small four percent of retail sector in 2006-07 is
likely to grow at 45-50 per cent per annum and quadruple its
share of total retail trade to 16 per cent by 2011-12. The study,
which was based on the largest ever survey of all segments of
the economy that could be affected by the entry of large
corporate in the retail business, has found that unorganized
retailers in the vicinity of organized retailers experienced a
decline in sales and profit in the initial years of the entry of
organized retailers. The adverse impact, however, weakens
over time. The study has indicated how consumers buy goods
and from where (Organized or Mom &Pop Store) and because of
which benefits, they buy. The study has also examined the
impact on intermediaries. The results are indicative of the
mega-and-mini metro cities around a limited number of
organized retail outlets. Based on the results of the surveys,
the study has made a number of specific policy

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recommendations for regulating the interaction of large
retailers and unorganized retail store.

INTRODUCTION
RETAILING Means “Re-tailing” to the customers so that they
comeback. Retailing consists of all activities involved in selling
goods and services to consumers for their personal, family, or
household use. It covers sales of goods ranging from
automobiles to apparel and food products, and services ranging
from hair cutting to air travel and computer education. Sales of
goods to intermediaries who resell to retailers or sales to
manufacturers are not considered a retail activity. Retailing
consists of the sale of goods or merchandise, from a fixed
location such as a department store or kiosk, in small or
individual lots for direct consumption by the purchaser.
Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In
commerce, a retailer buys goods or products in large quantities
from manufacturers or importers, either directly or through a
wholesaler, and then sells smaller quantities to the end-user.
Retail establishments are often called shops or stores. Retailers
are at the end of the supply chain. Manufacturing marketers
see the process of retailing as a necessary part of their overall
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distribution strategy. Shops may be on residential streets,
shopping streets with few or no houses, or in a shopping center
or mall, but are mostly found in the central business district.
Shopping generally refers to the act of buying products.
Sometimes this is done to obtain necessities such as food and
clothing; sometimes it is done as a recreational
activity. Recreational shopping often involves window shopping
(just looking, not buying) and browsing and does not always
result in a purchase. Retail Industry has brought in phenomenal
changes in the whole process of production, distribution and
consumption of Consumer Goods all over the world. In the
present world most of the developed economies are using the
Retail Industry as their vital growth instrument. At present,
among all the industries of U.S.A the Retail Industry holds the
second place in terms of Employment Generation. In fact, the
strength of the Retail Industry lies in its ability to generate
large volume of employment. Not only U.S but also the other
developed countries like U.K, Canada, France, and Germany are
experiencing tremendous growth in their Retail Sectors. This
boom in the Global Retail Industry was in many ways
accelerated by the Liberalization of Retail Sector.

Observing this global upward trend of Retail Industry, now the

developing
countries like India are also planning to tap the enormous
potential of the
retail sector. Wal-Mart, the world's largest Retailer has been
invited to
India. Other popular Brands like Pantaloons, Big Bazaar;
Archie’s are
rapidly increasing their market share in the retail sector.
According to a
survey, within 5 years, the Indian Retail Industry is expected to
generate
10 to 15 million jobs by direct and indirect effects. Emergence
of a strong Retail Sector can contribute immensely to the
economic development of any country. With a dominant retail

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sector, the farmers and other suppliers can sell their produce
directly to the major retail companies and can ensure stable
profit. On the other hand, to ensure steady supply of goods, the
Retail Companies can inject cash into the production system.
This whole process can result into a more efficient production
and distribution system for the economy as a whole.

Retailing in India

Retailing in India has remained in the unorganized sector and

largely untouched by corporate. The first decade of modern
retail in India has been characterized by a shift from traditional
channels to new formats including department stores,
hypermarkets, supermarkets and specialty stores across a
range of categories. The Indian retail industry is the fifth largest
in the world. Comprising of organized and unorganized sectors,
India retail industry is one of the fastest growing industries in
India, especially over the last few years. Though initially, the
retail industry in India was mostly unorganized, however with
the change of tastes and preferences of the consumers, the
industry is getting more popular these days and getting
organized as well. With growing market demand, the industry is
expected to grow at a pace of 25-30% annually. The India retail
industry is expected to grow from Rs. 35,000 crore in 2004-05
to Rs. 109,000 crore by the year 2010.Retailing in India has
remained in the unorganized sector and largely untouched by
corporate. The first decade of modern retail in India has been
characterized by a shift from traditional channels to new
formats including department stores, hypermarkets,
supermarkets and specialty stores across a range of categories.
Modern retail formats have mushroomed in metros and mini-
metros, in the last few years modern retail has also established
its presence in the second rung cities. Thus, exposing the
residents of these cities to shopping options, they have never
experienced before. It has been forecasted that the share of
modern retail will increase from 2 per cent currently, to about
15-20 per cent over the next decade. To begin with, retailers
today will have to support the large retail infrastructure in
terms of Malls and Superstores that are being created. The

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challenge for leading retailers shall therefore shift from
diverting demand to creating demand. With all the modern
stores offering convenience in terms of an assortment of
products, ambience, service and innovative products, the
paradigm shall shift from competing with the kirana stores to
an in-house demand creation. Relevant experiences from
consumer goods companies, which have successfully crafted an
explosion in demand in their sectors, through innovation,
consumer driven strategies, will be head runner. Times are
changing. With the GDP at an all time high and income levels
shooting through the roof, the average Indian consumer has
never had it so good. The propensity to consume has reached
peaks that had never been scaled before. Credit cards are
flashed with disdain and shopping baskets are getting bigger all
the time. Here are some factors that indicate the potential of
retail in India:

• At 271 million, one of the largest consuming base in the

world, forming 27% of the total population.
• A high spending community below 45 years comprises 81
percent of the population.
• A young population with 54% population below 25 years
• Increased literacy from 44% in 1965 to 70% in 2003
• Increase in working women from 1.3 million in 1961 to 4.8
million in 1998.

The first decade of modern retail in India has been

characterized by a shift from traditional kirana shops to new
formats including department stores, hypermarkets,
supermarkets and specialty stores across a range of categories.

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Modern retail formats have mushroomed in metros. The retail
sector in India is highly fragmented with organized retail
contributing to only 2% of total retail sales. The retail sector in
developed countries was also highly fragmented at the
beginning of the last century but emergence of large chains like
Wall Mart, Sears, and McDonald’s led to rapid growth of
organized retail and growing consolidation of the retail industry
in the developed countries. Organized retail is growing rapidly
and we see the emergence of large organized retail chains like
Shopper’s Stop, Lifestyle, and Westside. We also find retail
malls mushrooming all over the country. The opportunities in
retail industry in India will increase since Indian retailing is on
the threshold of a major change.

The retail landscape of India also called “Kirana” (the mom

and pop) stores are large in number when compared to the
organized format and they also provide good discount and
benefits to the customer. Both the formats have their benefits
and drawbacks. The competition is tough as the “Kirana” stores
have also geared up to take the battle forward, rather than sit
back and withdraw. There is a new range of stores coming up
which are called the upgraded “Kirana” stores, as they have
started using the modern way of operations, this is their answer
to competition. Although there is a portion of retailers who
have upgraded themselves, there is a significant portion which
is struggling to retain its customer base. The consumers have
many reasons to select a particular store above the others, the
factors that are clubbed under the heads like convenience,
merchandise, travel distance, price, promotions, service
offerings etc. Depending on the importance the customer
assigns to any of the attributes, and the availability of that
attribute, with the store, would influence the consumers’ choice
of store. The consumer behavior of grocery buying shows that
the consumers follow a hybrid fashion for store choice and
there is limited loyalty when it comes to store patronage. While
discussing the format that stores adopt, there is no pure
grocery retailer. Both organized retailers as well as the
traditional retailers combine “wet-retailing” to grocery retailing.

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They include some wet items like vegetables, and perishables
like milk, frozen food, bread etc., into there merchandise to
provide the shopper a one stop experience.

Organized Retail Store

Indian organized retail market is growing at a fast pace due to

the boom in the India retail industry. In 2005, the retail industry
in India amounted to Rs 10,000 billion accounting for about
10% to the country's GDP. The organized retail market in India
out of this total market accounted for Rs 350 billion which is
about 3.5% of the total revenues. Retail market in the Indian
organized sector is expected to cross Rs 1000 billion by 2010.
Traditionally the retail industry in India was largely
unorganized, comprising of drug stores, medium, and small
grocery stores. Most of the organized retailing in India have
started recently and is concentrating mainly in metropolitan
cities. The growth in the Indian organized retail market is
mainly due to the change in the consumer’s behavior. This
change has come in the consumer due to increased income,
changing lifestyles, and patterns of demography which are
favorable. Now the consumer wants to shop at a place where
he can get food, entertainment, and shopping all under one
roof. This has given Indian organized retail market a major
boost.
Retail market in the organized sector in India is growing can be
seen from the fact that 1500 supermarkets, 325 departmental
stores, and 300 new malls are being built. Many Indian
companies are entering the Indian retail market which is giving

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Indian organized retail market a boost. One such company is
the Reliance Industries Limited. It plans to invest US$ 6 billion
in the Indian retail market by opening 1000 hypermarkets and
1500 supermarkets. Pantaloons is another Indian company
which plans to increase its retail space to 30 million square feet
with an investment of US$ 1 billion. Bharti Telecoms an Indian
company is in talks with Tesco a global giant for a £ 750 million
joint venture. A number of global retail giants such as Walmart,
Carrefour, and Metro AG are also planning to set up shop in
India. Indian organized retail market will definitely grow as a
result of all this investments.

Indian Retailers
1. Hypermarket
1) Big Bazaar
2) Giants
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4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR

Mom And Pop Retail Store

Mom and pop stores are businesses that are owned and
operated in a single location. Rather than being part of
a national chain, the mom and pop store offers
a shopping alternative to consumers who wish to deal with
businesses that are native to a given city or town, and where
the owners of the business are established members of the
local community. While the proliferation of huge retail chains
have reduced the consumer market for mom & pop stores
considerably, many of these locally owned businesses continue
to operate and even to thrive in today’s economy. One time
honored example of a mom and pop store is the local general
store. In decades past, just about every small town contained a
business district that was anchored around a locally owned
general store. The general store would offer a selection of
canned goods, dry goods, fabric, and other common household
needs. This type of mom and pop store often also functioned as
one of the social hubs in town, as people would have the
chance to visit with one another while they shopped. Another
common example of a mom and pop store was the corner
drugstore. Usually owned and operated by the same family for
generations, this type of corner store would provide not only
prescription medications, but also a selection of over the
counter drugs, various gifts and notions, comic books, and even
a soda fountain. In many instances, the druggist or pharmacist
would be the proprietor of the mom & pop store as well, and
would be a well known figure in the community. As with the

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general store, the locally owned drugstore would often function
as a centre for social activity in the community. Today, the
mom and pop store still thrives in a number of forms. Some of
these corner stores are found in neighborhood business
districts and are intended to meet consumer needs for a limited
geographical area. These often include locally owned coffee
houses, pizzerias, and cafes. While reduced greatly in numbers,
there are still mom & pop stores such as bookstores,
drugstores, and even general merchandise stores that are very
similar to the old fashioned general store.

The retail landscape of India also called “Kirana” (the mom and
pop) stores are large in number when compared to the
organized format and they also provide good discount and
benefits to the customer. Both the formats have their benefits
and drawbacks. The competition is tough as the “Kirana” stores
have also geared up to take the battle forward, rather than sit
back and withdraw. There is a new range of stores coming up
which are called the upgraded “Kirana” stores, as they have
started using the modern way of operations, this is their answer
to competition. Although there is a portion of retailers who
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have upgraded themselves, there is a significant portion which
is struggling to retain its customer base.

Organized vs Unorganized Retail

In the developed economies, organized retail is in the range of
75-80 per cent of total retail, whereas in developing economies,
the unorganized sector dominates the retail business. The
share of organized retail varies widely from just one per cent in
Pakistan and 4 per cent in India to 36 per cent in Brazil and 55
per cent in Malaysia (Table 2.2). Modern retail formats, such as
hypermarkets, superstores, supermarkets, discount and
convenience stores are widely present in the developed world,
whereas such forms of retail outlets have only just begun to
spread to developing countries in recent years. In developing
countries, the retailing business continues to be dominated by
family-run neighbourhood shops and open markets. As a
consequence, wholesalers and distributors who carry products
from industrial suppliers and agricultural producers to the
independent family-owned shops and open markets remain a
critical part of the supply chain in these countries.

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Table 2.2: Share of Organized Retail in Selected
Countries, 2006

CountryTotal Retail Sales (US$ bn)

Share of Organized Retail (%)
USA 2,983 85
Japan 1,182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322
4
Source: Planet Retail and Technopak Advisers Pvt. Ltd

REVIEW OF LITERATURE

Hubbard, 1978 researched on location-related variables to

conclude that customers give more importance to location
related variables in analyzing both trade areas and retail
patronage behavior. These studies most often count the
benefits of locating a store in a shopping centre/mall to
increase the store ‘destination’ traffic rather than just stay with
the convenience pull. The same work was further supported by
Gautschi, 1981 to determine that shopping centre traffic
more accurately than single store traffic. The Huff model has
subsequently been studied by introducing trade overlap areas
for effects on store patronage. (Bucklin, 1971). Generically
speaking, these studies have resulted in the formation of the
Theory of Gravitational Pull in the field of retailing patronage
studies. Moore and Barry, 1969 found out that apart from

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distance, several other factors such as Income and social class
perceptions have also affect retail centre patronage decisions.

Arnold et al.1983, Craig et al. 1984, Louviere and Gaeth,

1987 studied the effect of product characteristics on store
patronage. They concluded that within a given trade area, the
uniqueness of assortment is a way of influencing store loyalty
and patronage. In consumer priorities, assortment and variety
comes after convenience and price. Given that consumers are
favorably inclined to revisit a store where they have had
positive shopping experiences (found something they could not
find anywhere else), these studies suggest that competing
stores need to differentiate themselves based on type and
quality of assortment. Several studies (Kunkel and Berry-
1968, Reynolds, Darden and Martin, Korgaonkar, Price-
1985) have report direct linkages between Store Image and
intensity of Store Loyalty. Thus, we can conclude that more
positive the Store Image the greater is the degree of loyalty.
M.Z. Osman, 1993 proposed a model that showed patronage
as a result of past purchasing experience and the customers’
(favorable) image of the store. He stressed that Patronage
behavior is the culmination of past purchase experience and
the congruity of the Store Image between the retailer and the
consumer.

Sen-2000: Store Image and Consumer Shopping Habits: Indian

Context: In India, some empirical studies provide important
information about consumer behavior and its responses to the
development of organized retail. Economical and social
changes are major contributors for a growing fragmentation of
consumers into multiple segments with different values and
buying priorities. Consumers have become more pragmatic,
educated and demanding, learning how to manage money and
time more efficiently. The focus on low prices was gradually
replaced by a value for money perspective. The study
developed by ETIG (Economic Times Intelligence Group, 2002)

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confirms these tendencies. Concerning food, the most
important attribute mentioned was quality, followed by price.
Indian consumer has different reasons for preferring different
store formats, either modern or traditional; Sen (2000) confirms
this in the study undertaken in Indian context. He confirms that
in the case of hypermarkets, the main motives for preferences,
in decreasing order are low prices, the possibility of buying
everything in the same place and the general appearance of
the store. Several investigations emphasize the possible
coexistence of different store formats (Chandrasekhar, 2001)
and others point out the relationship between the type of store
and the type of products. These studies show that, while
specialized and traditional stores are preferred for fresh
products, hypermarkets are preferred for shopping in general,
and also for frozen food, groceries and beverages. The
purchase of perishables in hypermarkets is reduced.

Mathew Joseph and Manisha Gupta_September 2008:

The Indian retail sector is booming and modernizing rapidly in
line with India’s economic growth. In this review the author
talked about the impact of organized retailing on traditional
retailing. With the increase in number of various formats for
shopping like malls, departmental stores, hypermarkets etc the
Indian consumer’s preferences are changing towards and that’s
the reason foreign investors like the king of retail Wal-Mart also
came into the Indian retail ground in collaboration with Bharti.
There is a huge untapped market is present in India right now
which contains a number of opportunities for retailers.

RNCOS (March 15, 2009/24-7 press releases): Increasing

trend of organized retailing will drive the growth of
convenience-store industry in the world. By 2011, Asia remains
the fastest growing convenience store market in the world as
the major Asian retail markets registered explosive growth in
opening up of new convenience store. Changing consumer
preferences, lifestyle and rising income level, which is heavily
influenced by economic growth, remains the major driving force
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for c-store industry in the Asian region. as per "Global
Convenience Store Market Analysis".

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Purpose and Significance of the study:

Organized retail has started to spread its roots in the Indian

market since past one decade and is gradually making mark
among all sections of the society. This project report tries to
explore the way organized retail has dramatically changed not
only the Indian traditional retailing structure by also the
consumption behavior. The consumption behavior was
examined with the help of a structured questionnaire. The
results show that, for consumers, the shopping mall or variant
of organized retail format is the preferred type of retail store,
due to convenience and variety.
The Indian market has seen vast changes in political,
economical and social environment, which has a great impact
on consumption. With the Indian as well as international
corporate entering into the Indian retail scenario the market
has been divided between the traditional and the organized
sector. The Indian retail scenario is presently facing the similar
situations as the mom and pop stores in the developing nations
faced at the emergence big box retailers. There are various
issues that need to be addressed, like what would be future
patterns of consumption, which formats of retail would be
preferred by consumers and will the rise of organized retail
affect the traditional retailers.

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 This study will contributes to the understanding that
consumers and retailers in most cases have different
perceptions in relation to store image and shopping habits,
justifying the need for consumer marketing research, which is
important in helping retailers, implement in a real marketing
orientation. The study will examines the choice of format the
consumer has when he or she decides to buy a particular
product and also describes the development of organized retail
in the future, focusing on aspects with potential effect on
purchasing behavior among the consumers. The focus is on
consumer expectations. The questions were formulated to
capture the overall behavior of the consumers and with the
help of the survey questionnaire the analyses was done. An
attempt has been made to explore the way organized retail has
dramatically changed not only the Indian traditional retailing
structure but also the consumption behavior.

Objective

To understand the impact and choice of retail format by the

consumers a questionnaire will be used. Three questions were
formulated in order to capture the overall purpose or objective
of this section of the research:
1. What are the most favored retail attributes by consumers
and how will they change in future?
2. How are the conventional and organized retailers
perceived?

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3. What external forces influence the choice of consumers
and how can these forces be accounted for in future?

CONSUMER BEHAVIOR AND RETAILING DECISION

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 , why they buy and from there 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 consumers have many

reasons to select a particular store above the others, the
factors that are clubbed under the heads like convenience,
merchandise, travel distance, price, promotions, service
offerings etc. Depending on the importance the customer
assigns to any of the attributes, and the availability of that
attribute, with the store, would influence the consumers’ choice
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of store. The consumer behavior of grocery buying shows that
the consumers follow a hybrid fashion for store choice and
there is limited loyalty when it comes to store patronage. While
discussing the format that stores adopt, there is no pure
grocery retailer. Both organized retailers as well as the
traditional retailers combine “wet-retailing” to grocery retailing.
They include some wet items like vegetables, and perishables
like milk, frozen food, bread etc., into there merchandise to
provide the shopper a one stop experience.

Factors Affecting Consumer Buying Behavior

Consumer buying behavior is influenced by the major three

factors:

• Social Factors
• Psychological Factors
• Personal Factors.

A. Social Factors

Social factors refer to forces that other people exert and which
affect consumers’ purchase behavior. These social factors can
include culture and subculture, roles and family, social class
and reference groups.

B. Psychological Factors

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These are internal to an individual and generate forces within
that influence her/his purchase behavior. The major forces
include motives, perception, learning, attitude and personality.

C. Personal Factors

These include those aspects that are unique to a person and

influence purchase behavior. These factors include
demographic factors, lifestyle, and situational factors.

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Sampling Design:

1. Sampling unit Respondents in Phagwara

2. Size of sample 25 respondents
3. Sample Method Random Sampling
4. Types of questionnaire Close ended

8.1 Type of Data:

Data type collected for analysis is PRIMARY i.e. data has been
observed and recorded by the researchers for the first time to
their knowledge. Data collected through journals, newspapers
& internet is SECONDARY type.

8.2 Method of data collection:

This study is a research which utilizes interrogation and
observation method for data collection. Secondary data was
obtained from intensive analysis & observation. The primary
data are those, which are collected afresh and for the first time,
and thus happen to be original in character. The secondary
data, on the other hand, are those which have already been

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collected by some one else and which have already been
passed through the statistical process. Method employed to
collect data is Questionnaire. This is a simple survey conducted
by filling in questionnaire from Phagwara people.

Collection of the Primary data:

As this study is of descriptive type, the primary data has been
collected through Questionnaire.
Analysis of Data
Data collected through questionnaire is being processed .This
processed data is:

a. Age wise distribution:

A) <20 [ 12 RESPONDENTS ]

B) 20-29 [ 45 RESPONDENTS ]

C) 30-39 [25 RESPONDENTS ]

D) >40 [18 RESPONDENTS]

• On the basis of above respondents the figures shows that

maximum respondents i.e. 45 out of 100 are young age
people. It means maximum no of customers belongs to
young age group.

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b. Gender wise distribution:

A) MALE [ 58 RESPONDENTS ]

B) FEMALE [ 42 RESPONDENTS ]

• On the basis of above respondents the figures shows that

maximum respondents i.e. 58 out of 100 are males. It
means maximum no of customers are male in malls due to
family responsibility.

c. Education wise distribution:

A) HIGH SCHOOL [ 08 RESPONDENTS]

B) LESS THAN GRADUATION [ 12 RESPONDENTS ]

C) GRADUATION [ 32 RESPONDENTS ]

D) POST GRADUATION [ 32 RESPONDENTS ]

E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]

• On the basis of above respondents the figures shows that

maximum respondents i.e. 32 out of 100 are graduates
and 32 out of 100 are post graduate. It means maximum
no of customers are educated and aware about retail
store.

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d. Income wise distribution:

A) LESS THAN Rs 20,000 [ 28 RESPONDENTS ]

B) BETWEEN Rs 30,000 TO 40,000 [ 48 RESPONDENTS ]

C) BETWEEN Rs 40,001 TO 50,000 [ 20 RESPONDENTS ]

D) MORE THAN Rs 50,000 [ 12 RESPONDENTS ]

• On the basis of above respondents the figures shows that

maximum respondents i.e. 48 out of 100 are having
monthly income between Rs 30,000 to 40,000. It means
maximum no of customers are belonging to upper middle
class.

1) Which type of place do you visit frequently for your shopping

needs?
a) Supermarket [ 80 Respondents]
b) Wholesaler [ 8 Respondents]
c) Local Stores [ 12 Respondents]

• On the basis of above respondents the figures shows that

maximum respondents i.e. 80 out of 100 are agree that
they frequently visit shopping mall for their shopping
needs. It means maximum no of customer are preferred
Shopping Malls for purchasing.

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2) From where would you prefer to buy products?
a) Single brand store [ 24 Respondents]
b) Multi brand store [ 60 Respondents]
c) Factory outlets [ 4 Respondents]
d) Local Big Retail Store [ 12 Respondents]

• i.e. 60 out of 100 are preferred multi branded store for

shopping. It means maximum no of customers are time
conscious and desire for many brand under one roof.

3) Which one from malls/ Local Stores (kirana store) is more

convenient for all your shopping needs?
a) Malls [ 72 Respondents]
b) Local stores [ 28 Respondents]

• i.e. 72 out of 100 are preferred shopping in malls for all

their shopping needs. It means maximum no of customers
are feels good in shopping for their needs in malls
because they can get everything from there under one
roof.

4) What are the prime factors for shopping in malls?

a) Variety in product.
b) Serviceability
c) Discounts

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 d) Mode of payment
e) All [ 100 Respondents]

• i.e. 100 out of 100 are preferred shopping in malls

because of the various factors which make the whole
shopping experience good.

5) What are the prime factors for shopping in kirana stores?

a) Emergency buying [ 65 Respondants]

b) For grocery items only [35 Respondants]

c) Discounts

d) Serviceability

• i.e. People preferred shopping from kirana stores just

when they need something urgent and grocery items only.
It shows the limited shopping experience one customer
have with these stores.

6) What influences your buying selections?

a) Availability of range b) Reasonable price
c) Availability of size e) Customer service
f) Brand name
1st OPTION 30 20 30 8 10

2nd OPTION 22 32 25 10 13

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3rd OPTION 20 18 15 14 33

4th OPTION 16 17 19 32 16

5th OPTION 12 13 11 36 28

• On the basis of above respondents the figures shows that

maximum respondents are attracted towards the Store
due to this ranking-
CUSTOMER SERVICE, BRAND, PRICE, RANGE, SIZE

It means maximum no of customers are prefer to the Malls for

customer service.

7) What do you look for in a product during your purchase?

a) Price [60 Respondents]
b) Brand Name [ 12 Respondents]
c) Customer Service [ 16 Respondents]
d) Variety available [12 Respondents]

• i.e. 60 out of 100 preferred price during their purchasing.

It means maximum no of customers are price conscious so
maximum customers belongs to middle class.

8) When do you prefer to shop Most in Store?

a) During Sale [ 18 Respondents]
b) During Fresh season stock [54 Respondents]
c) During Discount [ 24 Respondents]
d) When required [4 Respondents]

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 • On the basis of above respondents the figures shows that
maximum respondents i.e. 60 out of 100 are prefer
shopping during fresh season stock. It means maximum
no of customers did not compromise quality with discount
and offers.

9) How frequently you visit the Store (wherever you go for the
shopping)?
a) <1 month [ 60 Respondents]
b) 1-3 month [ 28 Respondents]
c) 1-6 month [ 4 Respondents]
d) 1 year [ 8 Respondents]

• On the basis of above respondents the figures shows that

maximum respondents i.e. 60 out of 100 are visited the
store with in one month. It means maximum no of
customers are visiting the store monthly.

10) What more fascinates you at shopping in malls?

a) Membership Card [ 28 Respondents]
b) Discount Mailers [ 20 Respondents]
c) Parking Facility [ 30 Respondents]
d) Lucky draw offer [ 22 Respondents]

• On the basis of above respondents the figures shows that

there are almost same numbers of respondents agrees for
all the facilities provided by malls. It means every

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 respondent is inclined towards the facilities provided by
malls.

Findings

• Customer’s preferences for grocery shopping are

gradually shifting from local kirana stores to organized
convenience stores.
• Age is one of the most important factors responsible for
the changing preference of customers.
• Brand Choice of customers is changing and this is also
influencing shift from kirana to convenience store. .
• Maximum no of customers belongs to young age group.
• Maximum no of customers are male in malls due to family
responsibility.
• It means maximum no of customers having nucleur family.

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 • Maximum no of customers are educated and aware about
retail store.
• Maximum no of customer are preferred Shopping Malls for
purchasing.
• Maximum no of customers are time conscious and desire
for many brand under one roof.

Conclusion

The past 4-5 years have seen increasing activity in retailing.

And, various business houses have already planned for few
investments in the coming 2-3years. And though the retailers
will have to face increasingly demanding customers, and
intensely competitive rivals, more investments will keep flow in.
And the share of organized sector will grow rapidly. retailing in
India is surely poised for a takeoff and will provide many
opportunities both to existing players as well as new entrants..
The country is witnessing a period of boom in retail trade,

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mainly on account of a gradual increase in the disposable
incomes of the middle and upper-middle class households.
More and more corporate houses including large real estate
companies are coming into the retail business, directly or
indirectly, in the form of mall and shopping center builders and
managers. New formats like super markets and large discount
and department stores have started influencing the traditional
looks of bookstores, furnishing stores and chemist shops. The
retail revolution, apart from bringing in sweeping, positive
changes in the quality of life in the metros and bigger towns, is
also bringing in slow changes in lifestyle in the smaller towns of
India. Increase in literacy, exposure to media, greater
availability and penetration of a variety of consumer goods into
the interiors of the country, have all resulted in narrowing down
the spending differences between the consumers of larger
metros and those of smaller towns. The customers are
attracting towards shopping malls & retail outlets and 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.

Bibliography

BOOKS:-
Marketing Management. ----Kotler & Keller
Marketing Management in Indian Perspective
----V. S. Ramaswamy & S. Namakumari

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Retail management ---Levy & Weitzs

WEBSITES:-

www.ssrn.com

www.retailindia.net

www.retailyatra.com

www.retailbiz.com

www.emeraldinsight.com/journals.htm

www.google.com

www.tataretail.com

www.aboutus.com

www.oppapers.com

www.managementparadise.com

www.indiainbusiness.nic.in

Questionnaire

Questionnaire on Consumer’s Buying Behavior Towards Retail

Store

I am a student of “LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA” and am working on a project “Study on
Consumer behavior towards organized retail stores vs

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Mom & Pop stores ”. I request you to spare a while to
help fill, this questionnaire, needed for the project
assigned to me as a part of my curriculum.

a. Age wise distribution:

A) <20

B) 20-29

C) 30-39

D) >40

b. Gender wise distribution:

A) MALE

B) FEMALE

c. Education wise distribution:

A) HIGH SCHOOL

B) LESS THAN GRADUATION

C) GRADUATION

D) POST GRADUATION

E) PROFESIONAL QUALIFICATION

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d. Income wise distribution:

A) LESS THAN Rs 20,000

B) BETWEEN Rs 30,000 TO 40,000

C) BETWEEN Rs 40,001 TO 50,000

D) MORE THAN Rs 50,000

1) Which type of place do you visit frequently for your shopping

needs?
a) Supermarket

b) Wholesaler
c) Local Stores

2) From where would you prefer to buy products?

a) Single brand store
b) Multi brand store
c) Factory outlets
d) Local Big Retail Store

3) Which one from malls/ Local Stores (kirana store) is more

convenient for all your shopping needs ?
a) Malls
b) Local stores

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4) What are the prime factors for shopping in malls?

d) Variety in product.
e) Serviceability
f) Discounts
g) Mode of payment
h) All

5) What are the prime factors for shopping in kirana stores?

a) Emergency buying

b) For grocery items only

c) Discounts

d) Serviceability

6) What influences your buying selections?

a) Availability of range b) Reasonable price
c) Availability of size e) Customer service
f) Brand name

7) What do you look for in a product during your purchase?

a) Price
b) Brand Name
c) Customer Service
d) Variety available

8) When do you prefer to shop Most in Store?

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a) During Sale
b) During Fresh season stock
c) During Discount
d) When required

9) How frequently you visit the Store (wherever you go for the
shopping)?
a) <1 month
b) 1-3 month
c) 1-6 month
d) 1 year

10) What more fascinates you at shopping in malls?

a) Membership Card
b) Discount Mailers
c) Parking Facility
d) Lucky draw offer

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