Professional Documents
Culture Documents
For
The award of
Dr.CHARU BANSAL
and
DR.BHAVNA PANDEY
2020
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ii
IILM UNIVERSITY
CERTIFICATE
SIGNED BY STUDENT
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SIGNED BY RESEARCH CO-SUPERVISOR
NAME AND DESIGNATION
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TABLE OF CONTENT
S. No Particulars page
Cover Page 1
Acknowledgement 2
Table of content 3
1 Consumer Preference 4-10
2 Retailing In India 11-23
3 Research Design 24-34
Review of Literature
Justification & Relevance of the Study
Theoretical Framework (Variables of the
study)
Scope of the Study (Geographical Area
covered)
Research Objectives (2-3 in points)
Research Hypothesis (Null & alternative)
Universe and Sample details (Sampling
technique used and sample size with
details of respondent) of the Study
Data Collection techniques
Statistical techniques and tools used
Techniques: Tables, diagrammatic
presentation, arithmetic mean, standard
deviation, t test, chi square test, etc.)
Tools: MS-Excel, SPSS
Limitation of the study
4 Questionnaire 35-37
5 Data analysis and interpretation 38-85
Finding, conclusion, suggestions,Bibliography, 86-91
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INTRODUCTION
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CONSUMER PREFERENCE
The individual consumer has a set of preferences and values whose determination are outside the
field of economics. Consumers can prefer one product over another.They are dependent upon
education, taste of preference, culture.
Consumer preference is the subjective tastes of an individual consumers measured with the
satisfaction with the particular product. The satisfaction is often referred to as utility.
When comparing furnitures, the color, fabric and size of sofa can each have an impact on
consumer preference.
This term is becoming increasingly known through online sources, according to Maritz. This
shold not be confused with the term brand preference, which relates to consumers preferring one
brand over competing brand.
Consumers will likely to choose another brand to fill the gap if one brand is unavailable.
The entire process of consumer preference results in an optimal choice. The consumer preference
allow a customer to rank different bundles of goods according to levels of utility or the total
satisfaction of consuming a good or service.
Consumer preferences is the individual tastes, as measured by utility, of various bundle of goods
according to the levels of utility which they give to the consumer. The preference is independent
of income and prices.
One can have a preference for Audi over Fords but only have a financial means to go for ford.
This term can be measured by the satisfaction with the specific item, compared to the
opportunity cost of that item.
When you buy one item, the another item is what you forfeit to buy a competing item.
The personal taste, education, culture, social pressure from neighbor, friends etc determined by
the consumer preferences. Consumer Preference is an important factor as it determines what
products people will buy within their budget, Consumer Preference given an indication towards
the consumer demand.
For an example, the company makes dresses knowing what a women will prefer in dress, what
color and product all of that than the company will sell better than others.
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Consumer preferences refers to the reasons for the choices people make when selecting products
and services. Examining the factors that determine consumer preferences helps businesses target
their products towards specific consumer groups, make new products and identify why some
products are more successful than others.
Advertising
Advertising plays a significant role in consumer preference, especially for non-durable goods for
example food or magazines. Advertising let the consumers know of available goods and services
and also shapes their impressions of these products. Advertising may create demand, such as a
consumer may not have wanted a new cell phone until he saw flashy new phones on TV.
Social Institutions
Social institutions, including parents, friends, schools, television and shows also influence
consumers' preferences. Such as, kids might want to have the same toys their schoolmates have,
while others may purchase the same products their parents used to buy.
Cost
Consumers may choose to purchase more of a good if the price falls. Such as, a sale or reduced
prices may increase consumption of a good. On the other side, an increase in price may cause
reduced consumption, specifically if the good has available substitutes.
Consumer Income
Consumers often desire more expensive goods and services when their income rises. If they face
a decrease in income, they are likely to choose less expensive goods and services. Such as, a
business selling luxury goods, such as jewelry, will probably be more successful in a high-
income area than a low-income area.
Available Substitutes
If a product offers many substitutes -- alternative products that consumers may choose instead a
specific brand of product -- consumers will be more responsive to changes in price. However, if
consumers do not perceive identical products to be effective –such as, consumers who do not
think Coke and Pepsi are equally tasty -- they will be less likely to move to a substitute based on
price. The idea is known as the price elasticity of demand.
And at a time when everyone is a gamer used to choosing characters or avatars, surrounding
game play levels, and making selection of all kinds, marketers scarcely give their customers
and hope the option to set preferences for content, channels, or measure. Too many elevate,
lead generation, usage stimulation, loyalty, or observation programs are serial fulfillment
exercises rather than real expressions of customer relationships. They're one-way streets
simulate as two-way relationships. And while it's much uncomplicated than ever for marketers
to decide what to say and when to reprove bomb their lists, it's counterproductive.
The “R” in CRM needs to be more important in the thinking, programming, and infrastructure
of marketers. There's a unwillingness to ask consumers for more information based on a
generalized anxiety about privacy. But this is a mis-inform. Greater data results in more
personalized, applicable, and useful content, which, in turn, gives customers greater value and
a stronger connection to a brand. Inquires after inquires has shown that when consumers
perceive genuine results they're ready, willing, and able to share privateinformation. This value
transformation is the core of all CRM programs.
Likewise, when consumers set preferences and brands perform on them, research suggests that
engagement, purchases, and customer satisfaction flyup. The trick is engulf preference as a
highly desired element with a CRM architecture or environment. A brand without a preference
center is partially unreal CRM.
Logically, customers should be guide to a preference center early in the relationship, when
their attentiveness and intentions are high. They should be asked for fundamental contact data
and the requisite opt-ins and then be given some choices about what kind of information or
incentives they want, how many times they want them, and which communication channel is
perfect to reach them without annoying them.
The dare is the investment. Too many buyer see even modest infrastructure costs as “non-
productive” since there is no frequent ROI. That view is uncreative. Giving customers options
and, in doing so, binding them to their preffered brands pays off again and again over time.
When it comes to preference, brands need to go up to honor and adjust customer preferences.
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The following are common types of customer preference.
Convenience
Favoring things that are easy such as a settling for a nearby restaurant. It is observed that
convenience is considered a strong type of customer motivation.
Effort
The contentment that results from effort. For example, a customer who gains a sense of
accomplishment from a diy project.
User Interfaces
Some customers will favor the simplest user interface possible. Others will favor lots of buttons
to play with. This can be as much about preference as want.
Stability vs Variety
Customers who would favor the same exact shoes they purchased a year ago in the same season
versus customers who prefer an unbelievable variety of shoes and avoid repeat purchases.
Risk
The risk bearance of the customer applies to seemingly harmless things such as purchasing a
new brand for the first time.
Values
Preferences related to importance such as customers who purchase environmentally friendly
products.
Sensory
Preferences related to color, look, smack, smell, touch and sound.
Time
Time preferences for example a customer who prefers an attentive waiter who drops buy every 5
minutes v/s a customer who doesn't want to feel hurry.
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Customer Service
It is well known in the customer service industry that some customers favor friendly service and
others prefer persistent and professional distance. Such as, a hotel porter who involves in friendly
conversation versus dry information about the room and hotel.
Customer Experience
Preferences related to the end-to-end customer involvement. Such as, the interior design,
lighting, art, music and social atmosphere at a cafe.
Scale of preference helps calculate a person's personality and preferences based on four factors.
To notice why scale of preference is important one first needs to examinethe four conflicting
poles that are found on the scale. They are introversion, insticntive, thinking/feeling, and
judging/perceiving. Each one of these principal poles on the scale determines what a person is
like if they are outgoing towards other people or more intrapersonal. Sensate and intuitive is
another different area of opposites where one can either be more careful or more intuitive about
things. Intuitive means that they use their mind more than their sentiments.
Again, with thinking and feeling you have those who will feel more and react more based on
sentiments. You also have those who think about things a little more and act based on reasoning
over emotion. Each one of these preference feature determines how the person will work, interact
with others, and live their life. This is why scale of preference is significant to those
who study psychology. For the individual it helps tell them more about themselves and the type
of life they will escourt.
A person that is knowledgable of their preferences and traits will understand why they tend to go
towards certain jobs, entertainments, and other aspects in life. It can also help in what type of
individual one will want as a companion in life. Scale of preference is often used by
online dating sites to help find proper matches. Whether it actually works or not is up to the
individual on the site. The important part is that if one can understand themselves and what they
favor it can lead to better options for them in the future, especially with dating preferences and
friends.
Good service and customer satisfaction are very significant for companies for both small and big
companies, but mainly for small companies. Today rivalry between companies is increasing all
the time that is why good service is becoming more and more important. When a company
manager serve its customer well enough and market them than a company can create long term
customer relationship and possibly get Free marketing at the same time when pleased. Customer
tell about the good service when they feel contented. Customer have a positive impact on the
company's outcome and that is why it is important an and interesting to investigate this impact.
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When measuring customer satisfaction it’s possible to get handful information of the company.
Customer and the outcome can be used to improve the company and its service. You get an exact
idea what your customer want and you can start building the service. Measuring customer
satisfaction should be a continuous process that is carried out daily, not just one if it is done
regularly results will be more fruitful.
Wal-Mart is now the leading company in the world is Wal-Mart in terms of sales—ahead of
Exxon Mobil, General Motors and other manufacturing giants. New technologies are improving
retail productivity. There are many opportunities to start a new retail business—or work for an
existing one—and to become a franchisee. Global retailing possibilities abound. On the other
hand customer service expectations are high at a time when more retailers offer self –service and
automated systems at the same time, The Indian retail sector has been boxing with the job
opportunities. The big players in this field is the Big Bazaar, Reliance, Shopper’s Stop, Tesco,
etc. are all competing in the retail chain’s business.
Retailers serves as a mediator between wholesaler and manufacturer. Retailers purchase goods
from wholesalers and sales them to the end consumers and earn profits.
Retailing is the conclusive set of activities or steps used to sell a product or service to consumers.
Retailers are the one who are responsible for matching individual demand of the consumer with
supplies of all the manufacturers.
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from manufacturing to pure retailing. The beginning of retailing in India can be better
understood as:
Early Eighties
The word 'Retailing' was synonymous with dealer, vegetable vendors, neighborhood
kirana stores (small grocery stores) or sole clothing and consumer durables in a nearby
village and towns. These retailers started in a highly unstructured and fragmented market.
Very few retailers started in more than one city.
Before 1990
Organized retailing in India was started by few manufacturer owned retail outlets, mainly
from the textile industry, such as: Bombay Dyeing, Raymonds, S Kumar's, and Grasim.
After sometime, Titan successfully created an organized retailing concept and established
a number of showrooms for its premium watches.
Nineties:
Liberalization of the Indian economy led to the dilution of stringent limitations. Entry of
few multi-national participant like Nanz into the Indian market. Changing outline of the
Indian consumers, Growing wages of the employees working in Greenfield sectors with
higher purchasing power. Making up of retail chains by domestic retailers like Cotton
World (Mumbai), Nirula's (Delhi) and the Viveks and Nilgiris in the South. The latter
half of the 1990s saw a new wave of entrants with a shift from Manufactures to Pure
Retailers. Such as Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and
Music World in music; Crossword and Fountainhead in books.
1995 onwards
An emergence of various shopping places, specifically in urban areas, with facilities like
car parking targeted to provide a complete destination experience for all segments of
society. Exposure of hyper and super markets trying to provide customer with 3 V’s -
Value, Variety and Volume.
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Depending on size they are called “Bada” Haat& “Chota” Haat. Haats are the first point contact
between villagers & market. These are the means of distributing local products/exchanging rural
surplus, an opportunity to buy daily use products and a place for social, cultural and political
contact. Haats are in fixed locations and some are over 140 years old.
There are approximately 25000 melas (Fairs & Festivals) held in India. The dates of the melas
are associated with season, phases of the Moon, movement of planets and Birth/Death of
mythological figures/incarnations. These melas serve as gathering of people away from 15 their
residences for entertainment and for the sale and purchase of goods and services at a particular
time . The duration of melas ranges from one day to 2-7 days are even longer.
Mandis are agricultural markets for procurement of produce directly from farmers. Hence one
has Cotton Mandi, Grain Mandi, and Soya Mandi etc.
Indian retail industry is the fastest growing industry in the world. Indian retail industry are
expected to grow from US$ 12,00 billion by 2021 from US$795 billion in 2017E. India is the
fifth largest favored retail destination in all over the world. India has the highest of per capita
retail store availability in the world. India’s retail sector has met with rapid growth, with retail
development taking place not just in major cities and metros, but also in Tier-II and Tier-III
cities.
Make economic growth healthy, demographic profile is changing,urbanisation, disposable
incomes increasing, consumer tastes and preferences are changing which are the other factors
driving growth of the organised Indian retail market.India’s public is taking to online retail in a
big way. Online retail sale is forecasted to grow at the rate of 31 per cent to reach US$ 32.70
billion in 2018.
Generating revenue from online retail are projected to grow to US$ 65 billion by 2020. Retailing
penetration is expected to increase by 18 per cent in 2021 from an estimated nine per cent in
2017.India is expected to become the world's third-largest consumer economy, reaching US$ 400
billion in consumption by 2025.Participation increasing from foreign and private players has
given Indian retail industry a boost. India’s price competitiveness engage large retail players to
use it as a sourcing base.Global retailers such as GAP, Tesco, Walmart and JC Penney are
increasing their sourcing from India and these are moving from third-party buying offices to
initiate their own wholly-owned/managed sourcing and buying offices.The Government of India
has introduced a reforms to attract Foreign Direct Investment (FDI) in retail industry. The
government has approved 51 per cent FDI in multi-brand retail and 100 per cent in single brand
retail under the automatic route which is expected to give a Boost them for doing business and
Make in India, and plans to allow 100 per cent FDI in e-commerce. Then India will become a
favourable market for fashion retailers on the back of a large young adult consumer base, relaxed
FDI norms , and increasing disposable incomes.
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Organized sector refers to trading activities undertaken by licensed retailers, that is, those who
are registered for sales tax, income tax, etc. Organized retail includes the corporate-backed
hypermarkets, supermarkets and retail chains, and also the privately owned large retail
businesses.
This sector is growing at a blistering pace, exceeding all previous estimates. According to a
study by Deloitte Haskins and Sells, the share of organized retail has increased from 5 percent of
total retail sales in 2006 to 8 percent in 2007.
Organised retailing are the trading activities tackled by licensed retailers, that is, those who are
registered for sales tax, income tax, etc. These compromise the corporate-backed hypermarkets
and retail chains, and also the privately owned large retail businesses.
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The key drivers for growth of organized retailing in India are Growing consumerism paving the
way for greater consumer enlightenment. Liberalized economic platform enabling the entry of
global retailers to set up shops in India through joint ventures, franchisees etc.
Expansion of organized retailing through scaling up to minimize cost and increase margin.
Supply
Players are now moving to Tier II and Tier III cities to enlarge penetration and explore untapped
markets as Tier I cities have been explored enough and have reached a saturation level.
Demand
Strong economic extension, changing demographic profile, increasing disposable incomes,
changing consumer tastes and preferences are some of the key factors that are leading and will
continue to lead growth in the organized retail market in India.
Barriers to entry
Refines by India in opening up its economy have greatly improved trade prospects, but major
barriers still exist such as regulatory issues, supply chain complexities, inefficient infrastructure,
and automatic consent not being allowed for foreign investment in retail. However, some of
these issues may be gear with allowance of FDI in single and multi-brand retail.
Bargaining power of suppliers
The bargaining power of producer varies depending upon the target segment, the format
followed, and products on offer. The unorganized sector has a governing position, still giving
above 90% to the total retail market. There are some players who enjoy an edge over others on
account of being established players and enjoying brand distinction. Since it is a capital intensive
production house, access to capital also plays an important part for expansion in the space.
Bargaining power of customers
High due to wide availability of preference. With FDI coming in, this is anticipated to become
stronger.
Competition
High rivalry is characterized by many factors, including assortment, products, price, quality,
service, location, reputation, credit and availability of retail space etc. New comers (business
houses and international players) including foreign players are expected to further intensify the
competition.
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Mom-and-pop Stores: These are family-owned small businesses, which sell a small
collection of goods to the customers. These stores are individually run and cater to small sections
of the society. These stores provides excellent customer service.They are well known for their
customer services.
Department stores: Department stores are general merchandisers. They offer to the
customers mid- to high products of quality. Though they sell general goods, some department
stores sell only a selected line of products. Examples in India would include stores like Westside,
lifestyle, shopperstop etc.
Category Killers: Specialty stores are called category killers. Specialty stores are specialized
in their fields and offer one category of products. Most popular examples of category killers
include special paintings done by well known painters, electronic stores like Best Buy and sports
accessories stores like Sports Authority.
Malls : One of the most visited and popular retail formats in India is the mall. Malls are the
largest retail format in India. Malls provide everything that a person wants and provide
everything under one roof. From accessories to clothes to cinemas or food, malls provide all of
this, and more. Examples include Triton Mall in Jaipur, WTP in Jaipur.
Discount stores : Discount stores are those that offer their products at a discount, that is, at a
lesser rate than the MRP. This is mainly done to clear out the stock left. Discount stores are those
stores that sell their goods at a low or reduced price with an aim of drawing bargain shoppers.
Example: Walmart.
Supermarkets: One of the popular retail formats in India is the supermarkets. Supermarket is
a grocery store that sells the household goods and food. They are the large, most often self-
service outlets and offer a huge variety of products. People go to supermarkets when they need to
stock up on groceries and other items. They provide products at a prices which is reasoable, and
of mid to high quality.
Street vendors
Street vendors, or hawkers they,are the one who sells goods on the streets, they are very popular
in overall India. Through shouting out wares, they draw the attention of various customers.
These vendors roams around streets and are found in almost every city in India, and the business
capital of Jaipur has a number of shopping areas comprised solely of street vendors. These
hawkers they sell not just the clothes and accessories, but also local food.
Hypermarkets
Similar to supermarkets, combination of supermarket and department stores are called
hypermarket. These are large retailers that provide all kinds of general goods and groceries.
Examples of hypermarkets are Big Bazaar and Reliance Fresh are hypermarkets.
Kiosks
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Kiosks are small box like shops, these shops sell inexpensive and small items like toffees,
cigarettes, water packets, sometimes tea and coffee. These are most commonly found on every
street in a city, and are there for local residents.
Technology-enabled efficiencies
Technology has enabled business and consumers to build efficiencies on the basis of the ability
to receive and transmit data at a fast speed. This data has today become critical for achieving
efficiencies in all aspects of retailing. In coming future retailer-producer relationships will
depend on technology, substituting information for inventory in the pipeline to reduce costs
while improving productivity. Retailers will depends on technology to establish links with
consumers through electronic retailing and customer relationship marketing.
Retail sales are expected to grow roughly 4% this year as merchants continue the momentum of a
strong holiday season and benefit from tax cuts, according to the National Retail Federation.
Retailers reported that $3.53 trillion in the sale of last year, a 3.9% increase from 2016,
according to preliminary estimates from the U.S. Census Bureau. The NRF projects overall retail
sales is expected to grow between 3.8 and 4.4% in 2018, including a 10 to 12% boost for online
and other non-store sales. The figures don’t count gas stations, car dealers, or restaurants.
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“We think these are corrected once again that the retail industry, while continuing to transform,
is well and alive,” NRF President and CEO Matthew Shay said in a press call.
“It is predicted that the consumers are going to continue to boost the economy with that
additional income that’s going to be showing up in their paychecks very soon,” he said.The retail
industry is expected to save $175 billion due to the decrease in the corporate tax rate, Shay said.
While it’s still very early to gauge the full effect, some retailers have already announced the
investments in response to tax cut.
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Challenges for Retailers
Serving the Indian
Consumer
The Indian consumer is
quite diverse, and so is
the Indian retail market.
In view of the broad
ranges of consumer
segments and the lack of
valid data on purchases
and consumption pat-
Challenges for Retailers
Serving the Indian
Consumer
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The Indian consumer is
quite diverse, and so is
the Indian retail market.
In view of the broad
ranges of consumer
segments and the lack of
valid data on purchases
and consumption pa
TOP 5 RETAIL COMPANIES IN INDIA
1. Reliance Retail
Reliance Retail is on the top list and is one of the best retail companies in India. This top 10
retail companies in India was established in 2005 at Mumbai by MukeshAmbani and has more
than 45 branches that are the top retail companies in India. Some of the remarkable brands of
Reliance Retail are, Reliance Digital,Reliance Fresh, Reliance LYF &Jio, Reliance Trends, and
AJIO. This top retail companies in the world have more than 3,750 departmental stores in India
which covers more than 14 million square feet of retail space at the end of 2017. The yearly
revenue of Reliance Retail was figured to be more than $7 billion and has more than 88,000
employees across 750 cities.
2. Future Group
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According to the most reliable Indian retail industry analysis by a leading market research
company Technavio, Future Group is another one of the top retail companies in India. Future
Group was incorporated at Mumbai, India by Kishore Biyani in 1987 by the name of Manz
Wear. It is on the leading list of retail companies in India and has many upcoming retail brands
in India such as Future Retail, E Zone, Big Bazaar, Food Bazaar, Nilgiris 1905, HyperCity,
Central, and Brand Factory. This uppermost retail company in India has an annual revenue of
around $3.5 billion and employs over 35,000 professionals across the country.
Office: Future Retail Home Office, Tower C, 247 Park, LBS Marg (W), Mumbai – 400 083
3. Trent
Trent is a top 10 retail companies in India and this best retail company in India is a part of the
Tata Group. Trent was established in 1998 at Mumbai, India and more than a hundred large
departmental stores in India. Some of the best retail brands in India owned by Trent are
Westside, Star Bazaar, and Landmark besides JV with top retail companies in the world like
Tesco, Zara, and Lakeland. This best 10 retail companies in India was estimated to have an
annual revenue of worth around $2.5 billion and has more than 25,000 employees working for
this best retail company in India.
Aditya Birla Retail is one of the top retail companies in India on the list of retail companies in
India. This Indian retail company was incorporated in 2007 by Kumar MangalamBirla at
Mumbai, India. This best retail companies in the world is a part of the Aditya Birla Group which
has a $50 billion turnover. The forthcoming retail brands owned by Aditya Birla Retail are
Pantaloons, More, Madura Garments, Idea Cellular and Planet Fashion. This best 10 retail
companies in India has an annual income of more than $2 billion and employs over 15,000
professionals across 600 departmental stores in India.
Turnover: $2 Billion
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5. Titan Company
Titan Company, one of the best retail companies in India was established as a joint venture
between the Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO) in 1984
at Bangalore, India. The main retail brands owned by this top of the list of retail companies in
India are Titan Time, Fastrack, Skinn, Tanishq, Titan Eyeplus, and Sonata. Extensive Indian
retail analysis disclose that this best retail company in India has an annual turnover of almost $2
billion with a net income of $120 million
Office: Titan Company Limited, Veerasandra, Electronic City P.O., Off House Main Road,
Bangalore-560100
Traditional retail refers to the thousands of small, mostly family-owned retail businesses. They
are also known as the “unorganized” retail sector. The “organized” sector refers to large, modern
regional and national retail fancy stores.
KIRANA STORES
General store moves a general line of merchandise (also known asgeneral dealer, general
merchandise store, or village shop) is a small store. In a very small space, it carries with it a
broad selection of merchandise, , where people from the town and surrounding rural areas
purchases all their general goods. These store carries the routine stock and obtains special orders
from warehouses. It differs from a convenience store or corner shop in that it will be the main
shop for the society rather than a convenient supplement.
General stores often sell principal food items such as milk and bread, and various household
goods such as hardware and electrical supplies. The main concept of the general store is very old,
and although some still exist, there are far fewer than there once were, due to urbanization, urban
sprawl, and the relatively recent phenomenon of big-box stores has come into existence. The
term "general merchandise store" is also used to describe a hybrid of a department store, with a
broad selection of goods, and a discount store, with low prices.
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profit. Consumers' cooperatives often takes the form of those retail outlets which are owned and
operated by their consumers. The cooperative provides products and services to different
consumers and are often the individuals who have provided the capital required to launch or
purchase that enterprise and they sell their products.
The top five companies in retail clasp a combined market share of less than 2%.
The Indian retail market has been ranked by AT Kearney’s eighth annual Global Retail
Development Index (GRDI), in 2009 as the most attractive leading market for investment in
the retail sector.
Currently the share of retail trade in India’s GDP is around 12 per cent, and is determined to
reach 22 per cent by 2010.
According to Government of India the retail sector is likely to grow to a value of ` 2,00,000
crore (US$45 billion) and could result into 10 to 15 million retail opportunities in the coming
five years; presently this industry employs 8% of the working population.
India continues to be among the most captivating countries for global retailers. According to
the Department of Industrial Policy and Promotion, approximately US$ 47.43 million was
the amount of Foreign Direct Investment (FDI) inflow as on September 2009, in single-brand
retail marketing.
More than 80% of the retail sector in the country is intensive in the large cities. A study
disclose that among the more than 20 locations, for organized retail in India, Mumbai was
found to be the most preferred location followed closely by Bengaluru in the second position.
REVIEW OF LITERATURE
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particular topic. Literature reviews are the secondary sources, and do not report to
original experimental work. Most often associated with academic-oriented
literature, such reviews are found in journals of academics, and are not to be
confused with book reviews that may also appear in the same publication. In nearly
every academic field literature reviews are a basis for research.
Perference of people is analyzed and quantified to know the factors responsible for
their perference. These data was collected through survey of consumers. Study
found that consumers changed their microwave oven,laptop,air conditioner after 3-
5 years. Mobiles within one year, LED every 1-3 years,refrigerators within 5-10
years. While purchasing from unorganised consumers prefer trustworthiness of
owners and avalibility of financial services. From this study it was found that
majority (32%) and (12%) of the consumers purchase durable from organised and
unorganised retail sector, while 56% of the consumers purchase from both
organised and unorganised retail sector.
The study uses descriptive analysis for finding out consumer perference of retail
formats for buying groceries and apparel. This research paper has been conducted
on 1350 respondents out of which 45% are female and 55% are male. In this
research paper it identifies the consumers behaviour towards emerging retail
formats. It also studies marketing strategies adopted by small retailers to
influencing consumers. It has also included the types of goods prefered for buying
from emerging retail formats. FDI in organised retailing =0.345,Product
attributes+0.154,Store attributes+0.113.
Shikha bhatnagar(2015)
stated The present study is based on secondary data and majorly focusing on the
various issues and strategies involved in unorganised retail. Secondary data is
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collected from newspaers, articles The indian retail sector is highly fragmented and
the and the unorganised sector has around 13 million retail outlets that account for
around 95-96%of the indian retail industrym. In smaller towns and urban areas ,
there are many families who are traditionally using these kirana shops . Organised
retailing will grow faster than unorganised retailing. Unorganised retailing
comprises of 96.5% while that of organised retailing with just 3.5%. In 1990's the
reatail. Sector has witnessed a level of transformation
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Years Year-wise distribution on the
basis of research papers viewed
2008 2
2009 2
2010 3
2011 2
2012 1
2009
20%
2010
30%
Research Gap
Jaipur, the capital of Rajasthan, has started seeing the development in Retail Industry i.e. both
unorganized and organized sector at a fast pace during the past few years. Most of the research
papers which have been viewed were basically focused on the various factors such as Customer
behavior regarding Organized Sectorbut scanty research work has been done that contributes
towards Changing Consumer Preference from Unorganised to Organised Retail Sector.
27
So, in the present study gap which has been identified by the researcher is to know the impact
ofChanging Consumer Preference from Unorganised to Organised Retail Sector in the Retail
Industry.
Lastly, the study will also be a corner stone for improving ideas to bring up positive results in
Changing Consumer Preferences.
Research Objectives
To study thepreferences of consumers in retail outlets.
To analyze the factors influencing consumer preferences.
To identify the consumer behaviour in terms of the products and services available in
the organized retail sectors.
28
To identify the problems which are faced by consumers from organized as well as
unorganized retail outlets.
Hypothesis
Null Hypothesis (H0) : There is no significant difference between the consumer preference
towards unorganized and organized sector.
RESEARCH DESIGN
Descriptive Research Design
Descriptive research designs help provide answers to the questions of who, what, when, where,
and how associated with a particular research problem; a descriptive study cannot conclusively
ascertain answers to why.
Exploratory research Design
Exploratory research isa research managed for a problem that has not been studied in a more
clear terms, intended to establish priorities, develop operational definitions and improve the
final research report.
Descriptive research design and Exploratory Research will be used to complete the
proposed study.
Sample Design
Random Sampling
Simple random sampling is used in this study..
Random Sampling: Simple random sampling is the basic samplingtechnique where we
usually select a group of subjects (asample) for study from a larger group (a population). Each
individual is chosen entirely by luck and each member of the population has an equal chance of
being included in the sample.
Research Instrument : Structured Questionnaire
29
Secondary Data:Secondary Research is a common research method; it involves using
information that others have gathered through primary research.
AGE
Age
18-25 26-35 36-45 46 and above
15% 7%
FREQUE
NCY 15%
63%
PERC
ENT
18-25 63 63.0
26-35 15 15.0
36-45 15 15.0
30
46 and
7 7.0
above
DATA INTERPRETATION
According to the survey conducted, it is indicated that most of the people fall in the age group
between 18-25 years. It says that 63 people fall in the age group between 18-25 years, 15 people
fall between 26-35 years, another 15 falls in the age group between 36-45, 7 people are of age 46
and above.
Frequency Percent
40%
Male 40 40.0
60%
Female 60 60.0
DATA INTERPRETATION
According to the survey conducted it is indicated that out of 100 respondents 40 are male
respondents and 60 are female respondents.
Income
31
Income
Below 2 lakh 2 lakh - 4 lakh 4 lakh - 6 lakh Above 6 lakh
14%
42%
19%
25%
Frequency Percent
DATA INTERPRETATION
According to the survey conducted, it is indicated that out of the 100 respondents most of the
respondents fall in the income group of below 2 lakh. It says that 42 people fall in the income
group of Below 2 lakh, 25 people fall in the income group of 2 lakh – 4 lakh , 19 people fall in
the income group of 4 lakh – 6 lakh, 19 people fall in the income group of 4 lakh – 6 lakh, 14
people fall in the income group of above 6 lakh.
Marital Status
Marital Status
Single Married
CHART 4.4
24%
TABLE 4.4
76%
32
Frequency Percent
Married 24 24.0
DATA INTERPRETATION
According to the survey conducted, it is clearly evident that out of the 100 respondents
76respondents are single and 24 are married.
Educational Qualification
FREQUENCY PERCENT
Others 19 19.0
DATA INTERPRETATION
According to the survey conducted it is indicated that out of 100 respondents 5 respondents fall
in the category of higher secondary, 57 are in the category of undergraduates, 19 respondents
fall in the category of post graduates and 19 fall in the other category.
33
NATIONALTY
TABLE 4.6
Nationality
Indian
CHART 4.6
100%
Frequency Percent
DATA INTERPRETATION
According to the survey conducted it is indicated that out of 100 respondents all are Indian.
DATA INTERPRETATION
According to the survey conducted it is indicated that out of 100 respondents 18 are homemaker,
40 are unemployed, 16 are part time employed, 26 are others.
34
Which type of place do you visit frequently for your shopping needs.
20%
TABLE 4.8
17%
CHART 4.8
63%
FREQUENCY PERCENT
Supermarkets 63 63.0
Wholesaler 17 17.0
DATA INTERPRETATION
According to the survey conducted it is indicated that out of the 100 respondents 63 respondents
visit supermarkets frequently for their shopping needs, 17 respondents visit wholesalers whereas
20 respondents visit local stores frequently for their shopping need
4%
27%
Avaliability of Range 45 45.0
45%
DATA INTERPRETATION
35
According to the survey conducted it is
indicated that out of the 100 respondents 45 respondents thinks that availability of range
influences their buying selections, 24 respondents thinks that reasonable prices influences their
buying selections whereas 27 respondents consider brand name is the reason and 4 respondents
thinks that customer service influence the buying selections.
FREQUENCY PERCENT
48%
39%
1-3 month 39 39.0
DATA INTERPRETATION
According to the survey conducted it is indicated that out of the 100 respondents 48 respondents
visit the store <1 month , 39 respondents visit the Kirana store in between 1-3 months whereas
13 people visit the store in between 1-6 month.
36
How frequently you visit the Supermarkets/Malls?
<1 month 1-3 month 1-6 month 1 year
25%
43%
10% 22%
Frequency Percent
1 year 43 43.0
DATA INTERPRETATION
According to the survey conducted it is indicated that out of the 100 respondents 25 respondents
visit the malls <1 month , 22 respondents visit the malls in between 1-3 months whereas 10
people visit the malls in between 1-6 month and the rest of the respondents visit the Malls after 1
year
40%
TABLE 4.12
37
43%
FREQUENCY PERCENT
Serviceability 40 40.0
Discounts 9 9.0
DATA INTERPRETATION
According to the survey conducted it is indicated that out of the 100 respondents 40 respondents
thinks that serviceability is the prime factor for shopping in Kirana stores, 43 respondents thinks
that emergency buying is the prime factor where as the other 9 and 8 respondents think that
Discounts and Mode of payment are the prime factors for shopping in Kirana Stores.
FREQUENCY PERCENT
23%
Serviceability 61 61.0
61%
Discounts 14 14.0
DATA INTERPRETATION
38
According to the survey conducted it is
indicated that out of the 100 respondents 61 respondents thinks that serviceability is the prime
factor for shopping in Supermarkets/Malls, 23 respondents thinks that emergency buying is the
prime factor where as the other 14 and 2 respondents think that Discounts and Mode of payment
are the prime factors for shopping in Supermarkets/Malls
TABLE 4.14
43%
10% 22%
Frequency Percent
DATA INTERPRETATION
According to the survey conducted it is indicated that out of the 100 respondents 25 respondents
shop more in stores during sale, 22 shop more in stores during fresh season stock whereas the
other 10 and 43 respondents shop during discount and when they required respectively.
39
CHART 4.15
Frequency Percent
43%
57%
Unorganised Retail Sector 43 43.0
DATA INTERPRETATION
According to the survey conducted, it is indicated that out of 100 respondents 57 respondents
preferred Organized Retail Sector’s availiability of space where as the other 47 respondents
preferred Unorganised retail Sector.
According to your opinion, which retail sector’s ambience satisfies you the most.
According to your opinion, which retail sector’s ambience satisfies you the most.
TABLE 4.16
Organised Retail Sector Unorganised Retail Sector
Frequen Percen
cy t
Unorganised Retail
88%
12 12.0
Sector
40
DATA INTERPRETATION
According to the survey conducted, it is indicated that out of 100 respondents 88 respondents
preferred the ambience of Organized Retail Sector where as the other 12 respondents preferred
Unorganised retail Sector.
According to your opinion, which retail ector provides more availability of brands
According to your opinion, which retail ector provides more availability of brands
Organised Retail Sector Unorganised Retail Sector
10%
90%
Frequenc
y Percent
Organised Retail
90 90.0
Sector
Unorganised Retail
10 10.0
Sector
DATA INTERPRETATION
41
According to the survey conducted, it is indicated that out of 100 respondents 90 respondents
preferred that Organized Retail Sector provides more availiability of brands where as the other
10 respondents preferred Unorganised retail Sector.
According to your opinion, which retail sector provides good parking facilities
35%
65%
Frequency Percent
DATA INTERPRETATION
According to the survey conducted, it is indicated that out of 100 respondents 65 respondents
preferred the parking facility of Organized Retail Sector where as the other 35 respondents
preferred Unorganised retail Sector.
42
According to you, which retail sector's billing Procedure is more convienient
Frequency Percent
Organised Retail
80 80.0
Sector
Unorganised Retail
20 20.0
Sector 80%
DATA INTERPRETATION
According to the survey conducted, it is indicated that out of 100 respondents 80 respondents are
satisfied with the billing procedure of Organized Retail Sector where as the other 20 respondents
preferred Unorganised retail Sector.
43
Which retail sector provides good serviceability
79%
Frequency Percent
DATA INTERPRETATION
out of 100 respondents 79 respondents thinks that Organized Retail Sector provides good
serviceability where as the other 21 respondents preferred Unorganised retail Sector.
According to you, which retail sector resolves the queries of the customers.
According to you, which retail sector resolves the queries of the customers.
CHART 4.21
Frequency Percent
77%
44
Unorganised Retail Sector 23 23.0
DATA INTERPRETATION
According to the survey conducted, it is indicated that out of 100 respondents 77 respondents
thinks that organized sector resolves the queries of customers where as the other 23 respondents
preferred Unorganised retail Sector.
Which retail sector satisfies you the most with their basic products availiability
Which retail sector satisfies you the most with their basic products availiability
TABLE 4.22
Organised Retail Sector Unorganised Retail Sector
Frequency Percent
DATA INTERPRETATION
According to the survey conducted, it is indicated that out of 100 respondents 66 respondents
thinks that Organized Retail Sector’satisfies the most with their basic products where as the
other 34 respondents preferred Unorganised retail Sector.
45
According to you, which retail sector provides more availiability of range
Frequency Percent
22%
Organised Retail
78 78.0
Sector
78%
Unorganised Retail
22 22.0
Sector
DATA INTERPRETATION
According to the survey conducted, it is indicated that out of 100 respondents 78 respondents
thinks that Organized Retail Sector provides more availiability of range where as the other 32
respondents preferred Unorganised retail Sector.
Which retail sector satisfies you the most with their quality of the products delievered.
46
Which retail sector satisfies you the most with their quality of the products delievered.
45%
55%
Frequency Percent
DATA INTERPRETATION
organized retail sector where as the other 55 respondents preferred Unorganised retail Sector.
TABLE 4.25
Which retail sector's pricing satisfies you the most.
4%
Frequency Percent
47
Total 100 100.0
DATA INTERPRETATION
According to the survey conducted, it is indicated that out of 100 respondents 96 respondents are
satisfied with the pricing of the Organized Retail Sector where as the other 4 respondents
preferred Unorganised retail Sector.
Frequency Percent
47%
53%
Organised Retail Sector 47 47.0
DATA INTERPRETATION
According to the survey conducted, it is indicated that out of 100 respondents 47 respondents
prefer the discounts and offers provided by the Organized Retail Sector where as the other 53
respondents preferred Unorganised retail Sector.
48
According to you, which sector's credit facilities is more preferable to you.
TABLE 4.27
According to you, which sector's credit facilities is more preferable to you.
Frequency Percent
DATA INTERPRETATION
that out of 100 respondents 2 respondents prefer the credit facilities of Organized Retail Sector where as
the other 98 respondents preferred Unorganised retail Sector.
Which type of place do you visit frequently for your shopping needs? * Age
Hypothesis
Null Hypothesis (H0) : There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
49
Likelihood Ratio 21.959 6 .001
DATA INTERPRETATION
From the above table, it is evident p-value (0.000) is less than 0.05 which means null hypothesis
has been rejected and alternative hypothesis has been accepted. So it can be concluded that there
is significant difference between the consumer preference towards unorganized and organized
sector on the basis of age.
Which type of place do you visit frequently for your shopping needs? *
Gender
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
50
Linear-by-Linear Association 1.128 1 .288
a. 0 cells (0.0%) have expected count less than 5. The minimum expected
count is 6.80.
DATA INTERPRETATION
From the above table, it is evident p-value (0.355) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of gender.
Which type of place do you visit frequently for your shopping needs? *
Income
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
51
a. 5 cells (41.7%) have expected count less than 5. The minimum
expected count is 2.38.
DATA INTERPRETATION
From the above table, it is evident p-value (0.065) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of income.
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
52
a. 11 cells (68.8%) have expected count less than 5. The minimum
expected count is .28.
DATA INTERPRETATION
From the above table, it is evident p-value (0.724) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of age.
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
53
DATA INTERPRETATION
From the above table, it is evident p-value (0.633) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of gender.
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
DATA INTERPRETATION
From the above table, it is evident p-value (0.770) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
54
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of income.
Hypothesis
Null Hypothesis (H0) : There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
DATA INTERPRETATION
From the above table, it is evident p-value (0.5) which means null hypothesis has been rejected
and alternative hypothesis has been accepted. So it can be concluded that there is a significant
difference between the consumer preference towards unorganized and organized sector on the
basis of age.
Hypothesis
55
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
a. 0 cells (0.0%) have expected count less than 5. The minimum expected
count is 5.20.
DATA INTERPRETATION
From the above table, it is evident p-value (0.266) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of age.
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector
Chi-Square Tests
56
Asymp. Sig. (2-
Value Df sided)
DATA INTERPRETATION
From the above table, it is evident p-value (0.190) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of income.
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
57
Pearson Chi-Square 19.226a 9 .023
DATA INTERPRETATION
From the above table, it is evident p-value (0.023) is less than 0.05 which means null hypothesis
has been rejected and alternative hypothesis has been accepted. So it can be concluded that there
is a significant difference between the consumer preference towards unorganized and organized
sector on the basis of gender.
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
58
N of Valid Cases 100
DATA INTERPRETATION
From the above table, it is evident p-value (0.118) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of gender.
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
59
a. 8 cells (50.0%) have expected count less than 5. The minimum
expected count is 1.40.
DATA INTERPRETATION
From the above table, it is evident p-value (0.511) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of income.
What are the prime factors for shopping in Kirana Stores? * Age
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
60
DATA INTERPRETATION
From the above table, it is evident p-value (0.366) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of age.
What are the prime factors for shopping in Kirana Stores? * Gender
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
DATA INTERPRETATION
From the above table, it is evident p-value (0.161) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of gender.
61
What are the prime factors for shopping in Kirana Stores? * Income
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
DATA INTERPRETATION
From the above table, it is evident p-value (0.026) is less than 0.05 which means null hypothesis
has been rejected and alternative hypothesis has been accepted. So it can be concluded that there
is a significant difference between the consumer preference towards unorganized and organized
sector on the basis of income.
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
62
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
DATA INTERPRETATION
From the above table, it is evident p-value (0.022) is less than 0.05 which means null hypothesis
has been rejected and alternative hypothesis has been accepted. So it can be concluded that there
is a significant difference between the consumer preference towards unorganized and organized
sector on the basis of age.
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
63
Asymp. Sig. (2-
Value Df sided)
DATA INTERPRETATION
From the above table, it is evident p-value (0.373) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of gender.
64
N of Valid Cases 100
DATA INTERPRETATION
From the above table, it is evident p-value (0.193) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of income.
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer
preference towards unorganized and organized sector.
Chi-Square Tests
65
DATA INTERPRETATION
From the above table, it is evident p-value (0.016) is less than 0.05 which means null hypothesis
has been rejected and alternative hypothesis has been accepted. So it can be concluded that there
is a significant difference between the consumer preference towards unorganized and organized
sector on the basis of age.
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
DATA INTERPRETATION
From the above table, it is evident p-value (0.382) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of gender.
66
When do you prefer to shop more in stores? * Income
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
Chi-Square Tests
DATA INTERPRETATION
From the above table, it is evident p-value (0.102) is more than 0.05 which means null
hypothesis has been accepted and alternative hypothesis has been rejected. So it can be
concluded that there is no significant difference between the consumer preference towards
unorganized and organized sector on the basis of income.
T-Test
Hypothesis
Null Hypothesis (H0): There is no significant difference between the consumer preference
towards unorganized and organized sector.
Alternative Hypothesis (H1): There is significant difference between the consumer preference
towards unorganized and organized sector.
67
Group Statistics
Discount and Offers, Credit Organised Sector 100 1.45 .520 .052
Facilities
Unorganised Sector 100 .55 .520 .052
t-test for
Equality of
Levene's Test for Equality of Variances Means
F Sig. T
customers
Equal variances not assumed 11.538
68
Basic Products, Availiability of Equal variances assumed .000 1.000 13.834
Discount and Offers, Credit Equal variances assumed .000 1.000 12.243
Facilities
Equal variances not assumed 12.243
customers
Equal variances not assumed 198.000 .000 1.120
Discount and Offers, Credit Equal variances assumed 198 .000 .900
Facilities
Equal variances not assumed 198.000 .000 .900
Difference
Std. Error
69
Space Availiability, Ambience, Equal variances not assumed
customers
Equal variances not assumed .097 .929 1.311
Discount and Offers, Credit Equal variances assumed .074 .755 1.045
Facilities
Equal variances not assumed .074 .755 1.045
DATA INTERPRETATION
An independent t-test has been applied to find out the significant difference between the
consumer preference towards unorganized and organized sector.
From the above table it is inferred that the p-value 0.000 is less than 0.05, the null hypothesis has
been rejected which means that there is a significant difference between the consumer preference
towards unorganized and organized sector on the basis of the factors like Store Characteristics
(Space Availiability, Ambience, Availiability of brands, Parking Facility, Billing Procedure),
Personal Behaviour (Serviceability, Queries of customers), Product Availability (Basic Products,
Availiability of Range, Quality of products, Prices of sector), Payment Options (Discount and
Offers, Credit Facilities).
70
FINDING, CONCLUSION, SUGGESTION
Findings
Age group of 18-25 are showing more interest to do shopping from Unorganized or
Organized Retail Sector.
Majority of the students are respondents are students ( undergraduate and post graduate)
who do shopping from Organized or Unorganized Retail Sector.
Majority of the students who do shopping from Unorganized or Organised Retail Sectors
are unemployed.
Majority of the respondents visit supermarkets frequently for their shopping needs.
Many of the respondents thinks that availability of range influences their buying
selections.
Majority of the people consider emergency buying as the prime factor for shopping in
Kirana Stores.
Organised Retail Stores has more availability of space in their stores than Unorganised
Retail Stores.
Most of the respondents prefer the ambience of the Organised Retail Stores than the
Unorganized Retail Stores.
71
More number of availability of brands in Organized Retail Sector has made its impact on
customers very strongly and captured loyal customers. People prefer to shop more with
Organised Retail Store when they prefer branded products.
Unorganised Retail Sector is trying very hard to provide good parking facilities to its
customers but Organised Retail Sector is giving tough competition.
Majority of the respondents feel that the billing procedure of the Organised Retail Sector
is better than the Unorganized Retail Sector’s billing procedure.
Organised Retail Sector is leading in every aspect of survey such as provide availability
of range, brands, good collection .
Supportive sales staff is one of the pillars on which the organised stores stand. Majority
of the respondents have agreed to the fact that sales personnel play a very important role
of supporting the consumers whenever they visit their stores with their shopping list and
influence their purchase decision.
Majority of the respondents thinks that the Organised Retail Sector provides more
availability of range than the Unorganised Retail Sector.
Clothing is more frequently purchased from Organised Retail Sector because of their
good quality of products.
Every age group people are interested in offers, if they are in need or they want to make
purchase.
Majority of the respondents thinks that freedom to choose from the shelves is an essential
factor that can contribute significantly in creating a positive impact about those stores.
The organised stores mostly offer packaged items and hence the consumer is free to
choose the products that they want and also the wheeled trolleys make the experience of
shopping better.
72
Conclusion
Indian retail is witnessing a tremendous growth with the changing demographics and increase in
income and quality of life of urban people. India is termed as the nation of shopkeepers with
about 15 million retail outlets of all kinds, but it is dominated by small neighborhood grocery
stores termed as Kirana Stores.
Food and grocery constitute the major portion of Indian household consumption. Organized
retail, which constitutes 8 percent of the total retail market, will grow much faster than
traditional retail. It is expected to gain a higher share in the growing pie of the retail market in
India.
Various estimates put the share of organized retail as 20 percent by 2020. Mass grocery and
apparel are two of the fastest growing organized retail segments. In both these segments there are
large domestic retailers who could be potential joint venture partners for foreign retailers.
Retailing in India is going through an evolutionary stage and is one of the largest sectors in the
global economy. The growth of modern trade format i.e. organised trade has already begun in
Tier-I, Tier-II and Tier-III cities and towns in India.
The unorganised retail sector is dominated by small kirana stores located in the neighbourhood.
There are some challenges faced by unorganised retail grocery stores like small scale operation
which does not permit to have warehouse and supply chain support which affects the inventory
and supply, limited stock of goods as per circulation only, most of these are family owned and
operate with less efforts on marketing and low on technology integration like computerised
billing, low credit period and margin extended to them by distributors resulting in low
profitability.
In addition to this, maintaining the hygienic conditions of the store, sufficient parking facility,
sufficient space for display of products, packaging of products, quality of the products
(adulteration free products) etc. also pose a challenge.
Indian retail has bright prospects due to growth in middle-and-high income. The changing
identity of Indian women and the structure of family are driving the demand for convenience.
Consumers are demanding better store ambience and are increasingly focusing on value,
convenience, variety, and a better shopping experience. This has resulted in consumers
increasingly using organised retail stores for their personal shopping.
As the famous saying goes that “the customer is the king”, both the organised and the
unorganised sector should keep the customer in mind before implementing any offer or scheme.
The taste and preferences vary from consumer to consumer and so does the satisfaction level.
The consumer prefers to shop as per his demographics. The choice of the store to shop depends
on his time availability, the nature of products needed, income status and the offers available.
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Suggestions
Following suggestions were drawn after the findings of the present study. Some suggestions
which will help the Organised and Unorganised retail sectors to overcome challenges before
them and help to retain their position in the distribution. These suggestions are only advisory in
nature.
Small store owners have to work on enhancing the size of the stores by either acquiring
the neighboring stores or by opening up new stores in a bigger size so that there will be
sufficient space to store the products properly and also display the products attractively
which will enable the consumers to know the products available with the stores.
Free home delivery of goods should be provided by the organised stores to their
consumers. Due to the large scale operations of the organised stores it is difficult for the
organised stores to provide home delivery of goods. But this is an important factor which
will improve the customer base of the store.
The unorganized stores should provide quality goods and services. They should also
stock up on branded products as required by the consumers. Unorganized grocery traders
have to add different product lines and varieties of product to their existing line. This will
increase their customer base.
Theft and shrinkage should be minimized by using appropriate latest technology. CCTV
can help minimize the theft and shrinkage. But the CCTC camera should be placed at
appropriate points which will enable the stores to keep a view on the products and the
people entering and leaving the stores.
The store should be clean and hygienic which will provide a pleasant atmosphere for the
purchaser. If the goods are seal packed properly then the insects will not be able to enter
the packets. This will ensure that the products are insect free and are hygienic for
consumption. Also the stores should be cleaned at frequent intervals so that the food
items 333 are not scattered on the floor which attracts rats and cockroaches. This will
provide a clean and pleasant environment for the consumers.
Replacement of defective goods should be made hassle free and easy without causing
inconvenience to the customer. It is of utmost importance that the organised stores avoid
selling of defective goods. But if due to some reason the defective goods reach the
consumer then the store should replace the defective goods without causing
inconvenience to the consumer. Such an act will only add to the goodwill of the store.
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Credit facility should be provided to the regular consumers who have been purchasing
from them for a long time and who the store owners wants to retain. Also credit card and
debit cards should be accepted by the small stores. This will indirectly provide credit
period for the consumers.
After sales service should be strengthened. The organised store can provide after sales
service like home delivery of goods, helping the consumers load the purchases in their
cars, 338 auto etc. Also the organised store can provide the facility of taking the order on
phone or through internet and deliver the goods to the senior citizens and then collect
payment on delivery. This will add up to the goodwill of the store and also boost the
image of the store in the market.
FUTURE SCOPE
• As for future research, there exists a need to study the development of modern
formats in greater detail. It would be interesting to study the rural market and
understand how retailers can aim their offerings to the rural market. It would be
interesting to study in detail the way neighbourhood stores and local grocery
stores are adapting themselves to the influx of modern retail giants like Big
Bazaar, Reliance Fresh, etc.
• The scope of the study is limited as it focuses on only on the buying behaviour of
the shoppers leaving the other gamut of activities associated with retailing such as
supply chain aspects, logistics aspects, financial aspects, environmental aspects
etc.
• The study has generalized organized and unorganized retailing for the purpose of
the study, separate research can be conducted using different store formats
(supermarkets, hypermarkets, discount stores, franchise store, specialty stores,
neighbourhood stores i.e Kirana Shops etc.) and type of product categories
(apparels and lifestyle, grocery, home appliance, books, home furnishings etc).
• The present study has covered only the important aspects of retailing from
shoppers’ perspective. Further the research can conduct on shoppers’ and
retailers’ perspective jointly. The survey was limited to Jaipur region of
Rajasthan. The future study may cover the other regions of India to have a
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comparative view of shoppers’ and retailers’ perspective towards emerging retail
formats.
• Human resource employed with the organised stores and unorganised stores can
be studied in detail. Also a comparative study can be done in order to identify the
skill gaps and appropriate suggestions can be made in order to make the human
resource competent.
• Return on investment of the organised stores and the unorganised stores can be
studied. Here also a comparative analysis can be done.
Ali. J., Kapoor. S., & Moorthy. J., 2010. Buying behavior of consumers for food products
in an emerging economy, British Food Journal 112(2): 109-124.
Amaresha M. and Dinakar G, 2012. A study on Buyer’s Behaviour in organised retail
outlet with special reference to Fast Moving Consumer Goods in Bangalore City, India,
European Journal of social sciences, Euro journals publishing, Inc. 201, 34 (4). Pp. 627-
640.
Gopal, V., Suryanarayana, A., 2011. Growth Drivers and Challenges or Organized
Retailing in India. International Conference on Business and Economics Research 1
(2011)
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