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RESEARCH PAPER

To investigate the impact of


retail outlets on consumer
purchase intention
By
MAHEEN AHMED
&
ZAHIDA SOHAIL

SUBMITTED TO:
SIR ASHRAF

i
Acknowledgements
With the blessings of Almighty Allah who is most merciful and beneficial, I am very

excited to present my little contribution to the expansion of some study. I am grateful

to my supervisor, Mr. ASHRAF without his help, guidance and motivation this work

would not have been possible. The commitment and dedication reflects my work in

this thesis, which can be useful in the future. . Under his professional supervision, I

found the passion of conducting the academic research and develop the needed skills.

His priceless assistance of productive comments and suggestions all through the

research work has added the achievement of my research for their precious support

and information. I would like to thanks to all my teachers, friends, class fellows and

those persons who helped me to complete this research I am very hopeful that this

research can be informative to other professionals.

ii
Abstract

Retail marketing operation is one of the major phase and extremely challenging. This

study examines the impact of retail outlets, location and branded store on consumer

purchase intention. New ways of retailing techniques were offer to customers by

something unique or mind-blowing that attract the customer and encourage them from

digital market to physical stores. A total 100 structured questionnaire collected to

examine the data. Customer like to feel, touch, taste, smell, and test, inspect and try

on. The basic propose of the study is that a consumer purchase intention infected by

surrounding of the stores. Retail marketing related idea that focuses out that success

of the product is to ability extent in light of whether customer believes it can fulfill

their needs or requirements. Companies built on that location where future operations

can easily perform due high amount of investment; decision has made by analysis

each aspect. This will become more complex in the future or retail marketing for the

companies as well as for the customers. Study inspect the how retailer play with

psychology of the consumer’s behavior by appealing emotionally. Social and retail

both are engaging customer through various types of attracting activities of brands.

The impact of all aspect will be analysis in this study.

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Table of Contents

S.NO. DESCRIPTION PAGE


NO.
1. Acknowledgements…………………………......................... 1

2. Abstract…………………………………............................... Iii

Chapter 1: Introduction…………………………………….. 1
1.1 Overview…………………………….................
1.2 Problem statement ……………………………….
3. 1.3 Background, Objectives and Significance of the
study
1.4 Outline of the Study…………………………………
1.5 Definitions…..………………………………………

4. Chapter 2: Literature Review……………………………… 8

Chapter 3: Research Methods……………………………… 18

3.1 Method of Data Collection………………………..


5. 3.2 Sampling Technique...…………………………
3.3 Sample size...…………………………………...
3.4 Instrument of Data Collection……………………
3.4.1 Validity and Reliability test…………………
3.5 Research Model developed……………………
3.5.1 Statistical Technique……………………………
6. Chapter 4: Results………………………………………... 22

7. Chapter 5: Conclusion 27

8. References………………………………………………….. 28

11 Appendix……………………………………………………. 29

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To investigate the impact of retail outlets on consumer purchase intention 1

Chapter 1: Introduction
1.1 Overview

“People will forget what you said, people will forget what you did, but people will

never forget how you made them feel”. (Goel, 2015) Shopping is not always a rational

experience. Customer make drive decisions, which influenced, by lighting, product

positioning, imagery, sound and smell. Customer do not affection store simply

because they affection products they carry. They love the store a result of it touches

them personally and emotionally. The thing that may be truly important to understand

about the consumer focus on the total shopping experience. (Goel, 2015). Retail

consumer and customer perception (Priyanka, 2014). As the technology is fast

growing the purchase intention of the customers is also rapidly change according to

the advancement as same as it is important to learn the purchase intention of the

customer.

Good and services offered by the retailers is described every single activity which

performed to sell product to the final consumer for their own used through shops

market showcase approach to entryway, mail or web where the consumer can buy the

product. For buying process, retailing is guarantee that consumer has get greatest

worth form purchasing. Retailer goes about as an interface between the maker and the

purchaser of things (Koul, 2013).

Retail marketing is a kind of business that have to face high level of rivalry.

Understanding the consumer’s purchase intention and ability to give quick reaction

accordingly is the success of the retail business. Retail marketing is a sort of business

with abnormal state of contention. The retail marketing influenced by its speedy

response and its capacity in comprehension customers' conduct. Business of retail


To investigate the impact of retail outlets on consumer purchase intention 2

industry is a sort of business where the high state of contention. The major factor of

success is quick reaction and understanding of consumer behavior in retail market.

Marketer know about the buyer interest and elements which impacts on buyer

choices. Store environment attributes includes lights, music, fragrance, shades,

dealing staff, display, etc. from the general setting insides influence the customer to

choose the store. Such factors of retail environment propose the image of the store

and efficiently influence the beneficial customer. Moreover, customers get in problem

from the assortment of the product and services received (Priyanka, 2014). It has

become important to understand consumer purchase intention and interest, demand

products and services, need and preferences of customer from the retail outlets. Focus

on Retail outlets that’s contributes to favorable or unfavorable decision of the

customer.

Retailers are consolidating the customers experience as a part of their customer

offering. Retailer faced the branded store of the market through the web retailing

online offering deals which lifting the experience something even more entertaining,

exciting and instructive to the customer through the entryway. Moreover, also serves

as showcase, gallery, and distribution center and satisfaction focus. Store are

practicing one up-man ship in inducing more store visit by making experience,

shopping fun and entertaining (Goel, 2015).Making an experience for consumer is

more important than ever. Getting people in the store is not enough. What customers

need is an event that draws in them (Goel, 2015)

The design of retail outlets that produce particular impact on the consumer that

enhances his purchasing probability (Ali, 2015). Organizations must coordinate

occasions for their customers, and that memory itself turns into the products (Goel,
To investigate the impact of retail outlets on consumer purchase intention 3

2015). Similarly, store environment retain customers longer in the store. Consumer

satisfy from the environment they spent more time and purchase more product from

the store. Consumers’ loyalty and buying experience increase by the impact of

environment (Ali, 2015).

Advertising, marketing promotion, in-store advertising or window display can

influence the customers to moves them in the store to shop. Retail stores engage in

creating environment to make lock the customer in their stores that encourage

shopping. Interestingly some retail outlets are effective with their moderate

warehouse style-shopping environment. Local markets week after week bazaars,

insect market, farmer market solve the reason for buying everyday requirements.

Consumer consumption related to necessity rather than reaction. The current research

says that the factors influencing shopping experience in nearby market also, which

may include a hedonic experience too. Similarly farmer market also showcase as well

a sight of colorful fruits and vegetables and spices, smell of flavors of baked items

and social connection a feeling of group involves the tactile experience of shopping

(Goel, 2015).

1.2 Problem statement

To investigate the impact of retail outlets on consumer purchase intention. Seller

attract the customers through social media and physical retail stores both influence

with emotional appeal and various form of interaction with the brand. Retailer play

emotional, psychology and feeling of the consumer to walk them in the store and shop
To investigate the impact of retail outlets on consumer purchase intention 4

1.3 Background, Objectives and Significance of the study

Retail marketing is the place where buyer can purchase their goods in exchange of

money, studies shows that customer attract most where they got benefits and goods of

their desire demand. Consumer become choosy in retail marketing, they look out for

new stuff, new avenues, benefits from competitors other side it’s also boost up the

sales revenue, marketing strategies and selling point in physical distribution.

Accessibility of retail store is more important than cost factor. (Koul, 2013)

Analyst and professionals have research the importance of the location have

significance value in retail marketing. Location must visible and promptly noticeable

for the store high performance and compete with the rivals. The location decision are

depend on kind of venture and its site. Location choices are dynamic challenge for

companies because impact of decision is not only for present it is also deals for the

future consequences. (Goel, 2015)

As researcher studies says the branded store practices introduce innovation in

products. Branded store begin among the same product-manufacturing firms comes in

a market and takes nearness and go up placed against bigger firms that are more

settled. Relative brands interact consumers with different kind of marketing activities

that can be a sale, namely, discounting and featuring. Now Consumers are well

acknowledge about brands and preferences in the brand category, brands or

competitors displaying exercises for potential position among different brands. Brands

emphasizes the factors of compete to be specific, marking down and highlighting.

(Jaravaza,2013)

Several researchers have identified the consumer of different background of

demographic segments like age, education, occupation and so on have different needs
To investigate the impact of retail outlets on consumer purchase intention 5

and wants they demand different verity of things at one place. According to the

studies Consumer have different types of shopping purchase intentions young

individuals’ preference in home shopping in other side Elder consumer shop

economical, some wants personalized shopping, other preferred shop at malls.

Therefore, this study will research the impact of retail outlets, location and branded

store on consumer purchase intention in the preference of brand category.

1.4 Outline of the studies.

This study is focus on purchase intention of the customer, which influences by retail

outlets, location and branded store of other brands in decision-making process.

1.5 Definitions

Consumer Purchase Intention

Consumer’ purchase intention is rapidly changing and focusing brands over all.

Almost every consumer’s activity moved to digital in somehow- from listening

music, to shopping, to booking cap and so on. Consumer focus on how they spend

their money on personal consuming items. Attracting consumer and influencing

them to shop is role of retail sale person. Customer buying decision made on their

brand beliefs and their satisfaction on or after purchase.

Understanding consumer demand is important for the retailers customer are

human being and they cannot be easily understood. Their behavior is

unpredictable or unreliable. Retailer must focus on consumer’s needs and provide

the solution of buyer’s problems. Knowledge of consumer purchase intention in

hence the chance of success in the market place. A decision making of consumer

purchase intention is depend on choice and physical activities.

Retail Outlets
To investigate the impact of retail outlets on consumer purchase intention 6

In retail outlet variety to thing available for sale which required more effort to

store influences the customers buy giving the goods on credit , product delivery at

homes and bargaining options .Its build the image of the product or brand or retail

store in order to satisfaction and retain the customers toward the pacific brand.

Shopper’s confidence show when they get order from the in store, web, mail or

phone then they dispatches the product at their homes

Location

Store location is factor that cannot be ignored. Customer prefer their comfort

while choosing the store. Customer shop at closets store from their work place and

homes. Location is important for business strategic plan to compete with their

competitors. Location must be attractive, convenient, and accessible for customers

to shop

Branded store

Retail marketing related idea that focuses out that success of the product is to

ability extent in light of whether customer believes it can fulfill their needs or

requirements. Brands build images and advertised its product eventually customer

decide how to interpret and react to marketing massage. Price, quality, and

perceived value is an essential variable in customer obtaining choice decision and

purchaser will purchase the product with high-perceived value.

Consumers perceived value through advertised product, store reputation,

convenient parking, readable labels and tags, and attractive price to retain

customer loyal. If customer receive trustworthy perceived value during the time,

they spent in retail outlet products and services they provide it will make good

brand image, loyalty and benefit to a business.


To investigate the impact of retail outlets on consumer purchase intention 7

Chapter 2: Literature Review

The retailing store having impact on consumers mind while the shop at the store form

their atmosphere and experience they had their. Modern era change the retail
To investigate the impact of retail outlets on consumer purchase intention 8

marketing and further move towards the digital marketing but still consumer went to

the retail outlets, shopping centers, multistoried malls were they want shopping,

entertainment and food at one place. Now modern retailers changed the traditional

shops into different types of multiple shops. (Priyanka, 2014)

The retail chain marketing environment modification shows the consumer perception

is changing in today’s world they liked those things, which attract the most to visit

there, buy from there. Consumer wants innovation in each thing, new ideas are

capturing and old ideas are obsoleted same phenomena placed in the retail marketing.

Fast growing world customer wants verity of things at one place with convenient of

location attractive retail outlets, also at same place different brands of appeals, foods,

grocery, cosmetic products, chemist and so on retail products, which creates, branded

store hard for other brands. (Koul, 2013)

Nowadays customer seek value added products benefits provided in stores to entry in

the retail stores, customer seek comfort while shopping is one of most important

element customer wants. Successful retail store cannot ignored an element which

customer are demanding. Retail chain gradually changed small traditional stores into

convenient, huge place and variety of products at one-point stores. Retailers design

the surrounding that effects the consumer by appealing emotional satisfaction on the

buyers that influence the purchasing probability. When customer are satisfied he

spend more time in the stores and impressive environment influence the purchasing

intention and gives comfortable experience for future visits and buy more.

(Hussain,2015).

Now the shopping introduce a multi-dimensional development in retail shopping

trends, from in home shopping to shopping center shopping. Consumer approaches


To investigate the impact of retail outlets on consumer purchase intention 9

that facility which gives more assess ability of assorted product and gives convenient

shop in nearby.

In retail store variety to thing available for sale which required more effort to store

influences the customers buy giving the goods on credit , product delivery at homes

and bargaining options .Its build the image of the product or brand or retail store in

order to satisfaction and retain the customers toward the pacific brand. Consumer’s

confidence show when they get order from the in store, web, mail or phone then they

dispatches the product at their homes. (Koul, 2013)

Consumers thinks with both rational and emotional mind. Logics comes into play

when we try when we justify the money we have spent especially when we are giving

into wants. Emotions create preferences to lead our decision. Brand is the image of

product in the minds of consumers. (Koul, 2013)

Product attributes and features information represent to influence consumer’s loyalty

and preference. Emotions are essential motivation behind why customer prefer brand

name products. All things consider, a large number of the products we purchase are

accessible as nonexclusive and brands with the same fixing and at less expensive

costs. (Cho, 2017).

Retail marketing related idea that focuses out that success of the product is to ability

extent in light of whether customer believes it can fulfill their needs or requirements.

Brands build images, and advertised its product eventually, customer decide how to

interpret and react to marketing massage. Price, quality, and perceived value is an

essential variable in consumer’ obtaining choice decision and purchaser will purchase

the product with high-perceived value. (Hussain, 2015)


To investigate the impact of retail outlets on consumer purchase intention 10

2.1 RETAIL OUTLETS

An enjoyable shopping environment positively affect shopping time and the money

spend in a store, and in addition enhance the feeling of shopping. Some studies

showed that renown or the engaging showcase of retailers can leads the customers to

foregoing the time and struggle to go more far off stores. Customer spend where they

got maximum satisfaction considering both retail attributes and shopping cost. Study

recommended that customer consider all parts of shopping includes cash, energy and

time and functional utility accommodational, low value an assortment of stock and

experimental aspects of shopping delight, glory in a outlets. (Cho, 2017).

2.1.1 Outlet image

Outlet image is the image of the store of customers mind. Customers’ impression of a

retail store is overall good and services. Outlet image factor that influence the

customer to purchase the product outside of their plan. Store creates emotion or state

of mind from their designed environment to target the customers to encourage for

shopping.

Retail outlet image has a multidimensional that mixes corporate image of the brand to

the retail stores associations such as price, quality and variety of products, value

reputation, social responsibility, outlets atmosphere and quality of services (Viot,

2012).

Outlet image influence distinctive results, for example, consumer fulfillment with the

outlet, reliability, expectation and shopping values (Svein, 2011).

2.1.2 Outlet atmosphere


To investigate the impact of retail outlets on consumer purchase intention 11

Retail store have all major factor of outlets atmosphere like as window display,

cleanliness, layout music, shopping assistant material, temperature, fragrance, lighting

effect, assortment, color, fragrance and so on. Every variable is considerable for the

consumer memories and experiences. These Intangible factors, which influences the

consumer purchase intention and attitude to builds pleasure feeling, which they

received, form the store through the color of walls. Lighting used to highlight the

product, which creates positive impact on consumer perceived value, and excitement

to touch the product to access the quality .temperature in store impact on consumer

intention extreme high or low temperature creates negative impact and dissatisfaction.

Pleasant fragrance of the store influences the customers’ mood and emotions to stay

more time in store. Music also play its role in consumer conscious and unconscious

decisions with longer consumption of time. (Ali, 2015)

Customers see the each aspect of the store including designing, layout, and window

display and over all attributes. Display in such a way that attract the customers to

make impulse buying. Product display whether grouping of product, floor space, wall

decoration and shelf space has a strong impact on consumer’s perceived value and

product buying purchase intention. (Priyanka, 2014)

Window displays of the retail outlet mostly shows the themes work behind the store

product line. Window displays attract the customers in the store by displaying the

stuff on it, which influences purchase intention. Customer’s footprint is more essential

for retail shop and display of windows makes major help in this count. It is also

creates the unique brand identity and image in the consumer mind which easily

identified stores among the different brand stores and retail outlets.
To investigate the impact of retail outlets on consumer purchase intention 12

Outlets atmosphere influencing shopping values with the personal association with

the product. Self-service is the most responsive and affirmation experience for

customer related to the personal interaction with product. (Viot, 2012) Customer’s

interaction with stuff influence shopping values and urge to socialize with others is

probably going add the shopping values.

Retail outlets includes qualities impacted by store policy. Customer as an imperative

part of policy keeping in their mind to address their issues. A customer looking for

shopping values in efficient time and efforts when they cannot or do not find the

product in their expected time they can be its ok on the ground that there are many

different spots to look. Accessibility is also important affect the customers when and

where they are looking for shopping motives and mood.

Cleanliness shows the intention of hygiene and take care of the product in the retail

outlet that improves the environment, which influence the customers towards the

outlet. It is gives positive impression among the customers and make them remain

longer in the store. Comfort and luxury looks of the store creates by the cleanliness of

the store, which makes consumer, stay longer and buys more. (Hussain,2015)

In store, temperature is a one of the variable that greatly effect on consumer mind.

When customer enter in the outlet the temperature of the store give them relaxation

feeling , if store is sophisticate customer cannot stand in the store for a long time and

prefer to going out instead for taking interest in shopping and deliver negative word of

mouth.

Lighting of the store is used to highlighting the product. It makes brighter and positive

impact on consumer’s mind and motivate the consumer purchase intention. Lighting

the products is help to find and touch the product and analysis the features of the
To investigate the impact of retail outlets on consumer purchase intention 13

product. Lighting of the store is to grab the customers attention with the goal they

start buying form the outlet. (Hussain,2015)

Color and shades having strong display of emotions and feelings, every color having

different means brands choose color according to consumer’s reacting behavior, sharp

color creates negative, unpleasant effect then soft tune colors. Consumer stimulate

memories, experiences and thoughts by the perceiving impact of the merchandise and

atmosphere (Cho, 2017).

Displaying and layout of the stores products stimulus to attract the consumer to

motivate shopping behavior. Well organize product, allocation of space, wall

decoration, rack space, selling area, and arrangement of products has a strong impact

on consumer mind, expectation, creates positive perception of stores, and encourage

the buying intentions. (Hussain,2015)

Environment of the stores is mixture of different elements, which is helping in

grabbing the attraction of the customer and influence their purchase intention. Retail

outlets store with the proper retail outlets motivate the customers to visit the store

again later on.

2.1.3 Retailer attitude

Retailer attitudes is the vital part to the retail store. The relationship of the customer

and retailer always remember in customer’s mind how they treat and behave when the

shop in store which urge to come back next time to shopping. Salesperson help the

customer in goods and services effectively, which add the customer perceived value
To investigate the impact of retail outlets on consumer purchase intention 14

quality. Consumer prefer the quality product and reasonable cost in choosing the

store. A salesperson is important factor for the creating outlet image and increase

satisfaction of customers about the product and the brand. (Koul, 2013)

Retailers create the relationship between the brand and the customers; consumer has

perceived value the effort of the retailer. Retailer represented of core product and

services on behalf of particular brand. A retailer is not only to selling the product; it is

also for guiding, problem solving and interaction with customers makes shopping

satisfaction for customer.

2.1.4 Product availability

Product availability defined as having an item in inventory when consumer request is

gets. When consumer do not get their desire product, they prefer to switch their brand

store and change the mind for not buying the product. Stock out circumstance of store

effect on the outlet image and store loyalty. Product accessibility is the building up

component for the retail outlet image (Koul, 2013).

Customer wants to buy the product in good quality and price at one shop. Customer in

the marketing having diversify options to shop form online marketing, replica market,

or brand retail stores, where they can fulfil their needs so product availability is

matters to holding the customers. Retail stores having consumers that are shopping

orientated, wants quick and productive consumption of time, from product availability

at right time creates the customer brand loyal and customer satisfaction.

2.1.5 Other services

In retail store variety to thing available for sale which required more effort to store

influences the customers buy giving the goods on credit , product delivery at homes
To investigate the impact of retail outlets on consumer purchase intention 15

and bargaining options .Its build the image of the product or brand or retail store in

order to satisfaction and retain the customers toward the pacific brand. Consumer’s

confidence show when they get order from the in store, web, mail or phone then they

dispatches the product at their homes. (Koul, 2013).

2.2 LOCATION

Store location is factor, which cannot ignored. Customer prefer their comfort while

choosing the store. Customer shop at closets store from their work place and homes.

Location is important for business strategic plan to compete with their competitors.

Location must be attractive, convenient, and accessible for customers to shop.

(Jaravaza, 2013)

Accessibility of location must be noticeable and promptly open for buyers. Stores

must be in that area where consumer can experience the economic and commercial

activities. Retail store finalize after the analysis of trade area and market site Store

location is finalize after analysis of the trade area and retail site. They also develop the

healthy competitive advantage a customer store choice decisions.

The traffic also having significant impact on location site. Customers try to avoid the

difficult driving areas and heavily vehicular traffic that consume more spend time in

traffic than shopping which make them tried and lose the interest in purchase

intention. (Jaravaza,2013)

Location decision is not an easy task, it has different stages facilities not only for

retail shop it is also important for industrial, warehouse, private house, office or other.

Companies built on that location where future operations can easily perform due high

amount of investment; decision has made by analysis each aspect. Attractive location
To investigate the impact of retail outlets on consumer purchase intention 16

effects on the operations, expenses acquired and the efficiency of the entire venture.

(Toby, 2012)

Customer seek their attitudes toward quality time, convenient parking, accessible

environment, affordable price, and other factors that influences in the choice of store.

Location is important for both who directly or indirectly connected with operations of

retail marketing. Best location gives advantages not only to customers it is also for

companies.

2.3 BRANDED STORE

In retail, marketing branded store is increasing day by day. It became difficult to

retain customer in the store and shop form the traffic of web marketing, branded

stores, comparative price, discount offers, and deals and so on. Retailer need to learn

about what Customer think about each of the major brand stores for shopping.

Consumer’s problem related to the location and timing of shopping. The presentation

of window display and name of brand attract the consumer in the store and make them

brand loyal. Consumer seek the quality then cost of product even they faced crowd in

retail store while shop. Transition between the store and the consumer provide

measures value of store witching behavior. (Goel, 2015)

Branded store has not only for attracts the buyer for a specific product it is also

compete with in the business branches of same brand. In some products retail store

effectively perform if branded store bunched for different products, competition

become healthier with other brands. (Aodheen) Competition began when two or more

brand of similar products moving in the same direction for a long period. Searchers

shows that competition between two groups develop market share and enhance the

forecast of the market. (Koul, 2013)


To investigate the impact of retail outlets on consumer purchase intention 17

2.4 Hypotheses

The discussion above has highlighted the area of study for this study. The

hypotheses developed for this study presented below:

H1:Retail outlets has significant impact on consumer purchase intention


H2:Location has a positive impact on consumer purchase intention
H3:Branded store has significant impact of consumer purchase intention

Chapter 3: Research Methods

For the purpose of survey and data collection, Respondents having shopping

experience who spent their time, money and energy to the retail shops influenced by

Retail outlets, location and branded store, contacted through google form and personal

visit. The data has collected from 100 respondents by means of a printed

questionnaire consisting of 10 carefully designed statements. The respondents were

ask to fill out their responses based on their personal experiences.

3.1 Method of Data Collection

The prior method used for the data collection and for survey was from the employees,

customer, students and the Staff members of different organization as they could give
To investigate the impact of retail outlets on consumer purchase intention 18

the most authentic results regarding the “To investigate the impact of retail outlets on

consumer purchase intention”, respondents were contact through online

questionnaires and personal visits. The data collected from 100 respondents who

answered 10 statements under Likert scale based questionnaire. The respondents

(consumer) who understand the significance of factors affecting of the Retail outlets,

location and branded store were the primary segments of focus in this study. The

segment consisted on consumer behavior, buying decision and, time money and

energy spent on shop because the views of those entire responders’ are important to

the issues.

3.2 Sampling Technique

A primary and secondary technique is being used for the study, a paper and pen and

google searched structure was designed as questionnaire having 10 statements along

with five (4) segments. First, consist of retail outlets, second has statements regarding

location, third determines branded store, and fourth describe the consumer purchase

intention. Snowball sampling technique is best suited due to many respondents of

different field and an organization. Non-Probabilistic random sampling has applied

for approaching sampling units. In which the respondents had chosen taking as per the

easy accessibility to the conductor of the study.

3.3 Sample size

Out of 100 questionnaires, which had send to respondents and personnel,99

valid responses has received. The collected surveys are sufficient for obtaining

meaningful information for statistical.

3.4 Instrument of Data Collection

The data collection instrument was a Likert scale questionnaire, which was

helpful in building relationship with the variables.


To investigate the impact of retail outlets on consumer purchase intention 19

3.4.1 Validity and Reliability test

The reliability of survey data was analysis through SPSS Reliability


Analysis. The data of 100 respondents were found to be reliable showing
Cronbach’s Al.pha of 0.701.

Case Processing Summary

N %

Valid 99 100.0

Cases Excluded 0 .0

Total 99 100.0

a. List wise deletion based on all variables in the


procedure.

Reliability Statistics

Cronbach's Alpha N of Items

.701 10

3.5 Research Model Developed


Research Model shows variables used in this research. Figure shows a

conceptual research model developed for this research.

Retail
Outlets

Location Consumer
purchase
intention
Branded
outlet

3.5.1 Statistical Technique

As this research is structured and based on primary data, descriptive statistical

techniques will be used. The statistical technique used in this study is regression. This
To investigate the impact of retail outlets on consumer purchase intention 20

Technique will be working of three variables to test three hypotheses mentioned

above.

αβ1X1+β2X2+β3X3 +ε …………….. (Eq. 3.1) General Regression Equation

α = Regression containing all Intercepts. Sustainable Development

β1= Degree of Dependency

X1=Independent Variables

ε = Regression containing all the Errors in the Model.

Equation 3.2 shows the regression model applicable to this research.

Consumer Purchase Intention= α+β1 (Retail outlets) +β2 (location) +β3 (branded

Stores) ……………. …….. (Eq. 3.2 Regression equation applied to the research

variables)
To investigate the impact of retail outlets on consumer purchase intention 21

Chapter 4: Results

A total of 100 surveys forms could be collected in the available time. The data

was analyzed using regression. The regression was set at four, which is an indication

of respondents’ acceptance of the hypotheses.

4.1 Findings and Interpretation of the results

Regression was applied to determine the statistical validity of the hypotheses.

Variables Entered/Removed
Model Variables Entered Variables Method
Removed

location, retail outlet,


1 . Enter
branded_store

a. Dependent Variable: Consumer_purchase_intention


b. All requested variables entered.

Table 4.1.1 Model Summary,


Model Summary
Model R R Square Adjusted R Std. Error of Change Statistics Durbin-
Square the Estimate Watson

R Square F Change df1 df2 Sig. F


Change Change
To investigate the impact of retail outlets on consumer purchase intention 22

1 .494a .244 .220 .50693


Coefficients .244 10.220 3 95 .000 2.020

Model a. Predictors: (Constant), location, retail_outlet,


Unstandardized Standardizedbranded_store
t Sig. 95.0% Confidence Interval Collinearity Statistics
b. Dependent Variable: Consumer_purchase_intention
Coefficients Coefficients for B
Table
B 4.1.1
Std. ModelBeta
Error Summary, where R shows a strong relationship
Lower Upper between
Tolerance VIF
Dependent and Independent variables 0.494 .In addition,Bound
Bound R Square indicates the
(Constant) 1.777 of Regression
fitness .367 Model R4.839
Square .000 1.048Adj. R Square
of 0.224 and 2.506 0.220 indicating

branded store .337 .089 .406 3.773 .000 .160 .514 .689 1.451
1
that the variables are describing the model.
retail outlet -.003 .076 -.004 -.042 .966 -.155 .148 .785 1.274
Table 4.1.2 Anova
location .131 .084 .156 1.555 .123 -.036 .298 .786 1.272

a. Dependent Variable: Consumer_purchase_intention


ANOVA
Model Sum of Squares df Mean Square F Sig.

Regression 7.879 3 2.626 10.220 .000b

1 Residual 24.413 95 .257

Total 32.292 98
a. Dependent Variable: Consumer_purchase_intention
b. Predictors: (Constant), location, retail outlet, branded store
Table 4.1.2 ANOVA shows a significant result of regression as the value in the

last column Sig. is less than 0.05 that give a sign of positivity and describe that

consumer purchase intention is depending on the dependent variables used in this

study.

Table 4.1.3 Coefficients

Coefficientsa

The Coefficients table (Table 4.1.3) helps to construct the Regression Model in which

the Constant is donated by consumer purchase intention and rest are the Beta in form

of Independent Variables. Furthermore, the table is showing individual dependency of

variable as Retail outlets showing a significant impact because their Sig. value is less
To investigate the impact of retail outlets on consumer purchase intention 23

than 0.05 i.e. 0.004and T value is –0.42 reject region. Location showing a positive

impact because their Sig value is more than 0.05 i.e. 0.123and T value is less than +2

i.e. 1.555 acceptance region. Branded Store showing a significant impact because

their Sig. value is less than 0.05 i.e. 0.000 and T value is greater than +2 (3.773)

which lie in acceptance region.


To investigate the impact of retail outlets on consumer purchase intention 24

5.1 Hypotheses Assessment Summary

Summarizes the results that there is impact of independent variables on the consumer

purchase intention and results of the hypotheses.

T Sig Empirical
S. No Hypotheses Beta
Value Conclusion

1 H3:Branded outlet has significant Accepted


.337 3.773 .000
impact of consumer purchase intention

H1:Retail outlets has significant


2 impact on consumer purchase Rejected
-.003 -.042 .966

intention
3 H2:Location has a positive impact on Accepted
.131 1.555 .123
consumer purchase intention
To investigate the impact of retail outlets on consumer purchase intention 25

Chapter 5: Conclusion
Conclusion

This study shows that the retail market do not follow traditional store design. The

purpose is to deal with the impact of Retail outlets on consumer purchase intention

where usually visit to shop.

As per responses obtained branded store having strong impact on customer purchase

intention. Well-organized retail outlets like outlet image, outlets atmosphere,

discount, retailor behavior and other services have strongest relationship with the

consumer perception. The result reflect that location having intangible factors that

impact customer purchase intention, customers are attracted by window display ,

atmosphere, music, color, product availability ,discount offered to them.

Moreover, Branded store is also important factor for customer influencing shopping

behavior. Customer prefer the branded store nearby where they shopping is

convenient and assessable. Branded store give competition to other stores but for the

consumer it is give number of verity of things, innovative ideas and designs, and

better quality of product from other brands. Customer’s perception on the location

having no effect of travelling distance of the store covered by the customer impacts on

their shopping behavior. Customer made the decision on their brand belief long with

the Retail outlets and branded stores. This also reflects the factor of loyalty of

customer against the particular brand. The retailer need to kept under consideration all

these factor to meet the organizational goals and sales, it is also for meet the

expectation of the customer and make them brand loyal. Location and Branded store

having significant impact on consumer purchase intention according to the result.


To investigate the impact of retail outlets on consumer purchase intention 26

References
Cho, J. Y., & Lee, E. J. (2017). Impact of Interior Colors in Retail Store Atmosphere
on Consumers’ Perceived Store Luxury, Emotions, and Preference. Clothing
and Textiles Research Journal, 35(1), 33-48. (n.d.).

Goel, I. S. (2015). Retail store environment and customer experience: a paradigm.


Journal of Fashion Marketing and Management, 290 - 298.

Hussain, R., & Ali, M. (2015). Effect of store atmosphere on consumer purchase
intention. (n.d.).

Jaravaza, D. C., & Chitando, P. (2013). The role of store location in influencing
customers' store choice. Journal of Emerging Trends in Economics and
Management Sciences, 4(3), 302. (n.d.).

Koul, S. ( 2013). Customer preceptions for Retail outlets: A Study of traditional retail
stores in INDIA. Journal of Business & Economics, pp 79-103.

Priyanka, S. N. (2014). Retail Shoppability: The Impact Of Store Atmospherics &


Store Layout On Consumer Buying Patterns. INTERNATIONAL JOURNAL
OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 3, ISSUE 8, 15-
23.

Sladjana Nørskov Polymeros Chrysochou Marina Milenkova , (2015)," The impact of


product innovation attributes on brand equity ", Journal of Consumer
Marketing, Vol. 32 Iss 4 pp. 245 - 254. (n.d.).

Steve Wood Sue Browne, (2007),"Convenience store location planning and


forecasting – a practical. (n.d.).

Svein Ottar Olsen Kåre Skallerud, (2011),"Retail attributes' differential effects on


utilitarian versus hedonic shopping value",Journal of Consumer Marketing,
Vol. 28 Iss 7 pp. 532 - 539. (n.d.).

Toby C.Y. Yip Kara Chan Evon Poon, (2012),"Attributes of young consumers'
favorite retail shops: a qualitative study", Journal of Consumer Marketing,
Vol. 29 Iss 7 pp. 545 - 552. (n.d.).

Viot, F. K. ( (2012)). How store brands build retailer brand image". International
Journal of Retail & Distribution Management, Vol. 40 Iss 7 pp. 528 - 543.

Appendix
To investigate the impact of retail outlets on consumer purchase intention 27

Data view

Variable view

QUESTIONNAIRE
To investigate the impact of retail outlets on consumer purchase intention 28

As a part of my BBA course, I am working on a study on “To investigate the impact


of retail outlets on consumer purchase intention”. The questions given in this
survey will be exclusively used for the research project. It would be appreciated if you
would spend a few minutes of your precious time to answer the questions given
below. Thank you for your cooperation.
Please indicate your agreement/disagreement with the following statements using
the scale given below:

NAME: GENDER:

MALE FEMALE

CONTACT: EMAIL:

EDUCATION: AGE:

Intermediate Graduate Postgrad PH.D Less-20 21-25 26-30 30- above

OCCAPTION:

Studen Teacher Employe Own Other


t e Business

Strongly Disagree Disagree Neutral Agree Strongly Agree


1 2 3 4 5
DisagreeStrongly

AgreeStrongly
S. Questions
Disagree
Neutral

Agree
No

Retail outlets
1 Well organized merchandise display merchandise 1 2 3 4 5
easy to find merchandise stored in sections О О О О О

2 A store's attributes (lighting, music played, 1 2 3 4 5


temperature) influences your decision to buy О О О О О
there.
Location

3 Do you prefer shopping central shopping mall 1 2 3 4 5


where other stores are nearby О О О О О
4 Location must be attractive, convenient and 1 2 3 4 5
accessible for customers to shop О О О О О

Branded Store
To investigate the impact of retail outlets on consumer purchase intention 29

5 Reputation of the brand’s store influence your 1 2 3 4 5


decision to buy there. О О О О О

6 Window display and name of brand attract the 1 2 3 4 5


shopper in the competing store influence your О О О О О
decision to buy there.

7 Shopper seek the quality then cost of product 1 2 3 4 5


even they faced crowd in retail store while shop О О О О О

Consumer purchase intention

8 Customer buying decision made on their brand 1 2 3 4 5


beliefs and their satisfaction on or after purchase. О О О О О

9 Services provide the solution of buyer’s 1 2 3 4 5


problems influence your decision to shop there. О О О О О

10 Digital shopping attract more than physically 1 2 3 4 5


shop at stores. О О О О О

Thank you for your help

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