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organized retail in India as the level of interest processing information. They usually have a limited
shown by major corporate sector has increased amount of time available, and must decide which
manifold over the last few years. Large departments to visit, categories to shop, and specific
conglomerates like the TATA's, ITC, the RPG brands and items to examine based on their
group, the Piramals and the Rahejas have invested shopping plans and level of engagement with the
heavily into large format retail stores. Organised merchandise (among other factors). For marketers to
retailing for some of these business groups is a be successful in this environment, they need to
logical extension of their businesses. Also textile understand how shoppers allocate their attention
and garments companies like Raymond, Madura across the available products and displays in the
Garments and Arvind Denims have successfully store, and identify the factors that drive shopper
employed forward integration by opening up engagement and interest. This new focus on
exclusive outlets for their branded garments. The measuring shopper behavior has fueled several
shopping habits and preferences of consumers are recent research trends.
changing and more consumers, especially from the Extant literature shows that retailing can take many
metropolitan cities incline towards retail chains forms, both store and non-store forms. Most
which offer a vast assortment of merchandise retailing is conducted in stores such as Multi chain
under one roof. retails, department stores and in some traditional
Marketplaces in urban demographic settings attract open markets. Whatever the form, the consumer is
a large number of buyers and sellers, which can be called upon to make a choice. Thus, consumer
termed as market thickness. The growth of market decision making involves not only the choice of
share for specialised retailers and large product and brand but also the choice of retail outlet
departmental stores depends on the size of the (Jobber, 2009). The evolving nature of retailing and
consumer segment in a given urban population. A its various forms; and the consequent
great deal of research focuses on how consumers competitiveness in the sector has frequently held the
shop, but the rationale behind their chosen interest of scholars. Thus, Kaufman and
behaviors remains somewhat underserved. The total Lane(1996); Frasquet, Gil and Molle (2001) and
concept and idea of shopping has undergone a vast Parikh (2006) observe that today’s global retail
drawing change in terms of format and consumer environment is rapidly changing more than ever
buying behavior, ushering in a revolution in before as it is typified by growing competition from
shopping in India. Modern retailing has entered into both domestic and foreign companies, a rise in
India as is observed in the form of sprawling mergers and acquisitions, and more classy and
shopping centers, multi-storied malls and the huge demanding consumers who have great expectations
complexes that offer shopping, entertainment and related to their consumption experiences. Changes
food all under one roof. Given the complexity of in consumers' natural and social environments; and
modern retail stores, shoppers must be selective in technology have a huge impact on their buying and
choice of shopping centres. Also, store attributes or the relationship between store image and loyalty
store image which are fundamentally the marketing was examined (Akdogun et al. 2005; Atakan &
mix of the retailer (Morschett, Swoboda & Foscht, Burnaz, 2007). Also some studies examined the
2005; Ghosh 1990) have been presented as store relationship between store image and store choice
choice criteria (Mittal & Mittal, 2008). Though store and loyalty (Gilmore et al., 2001; Koo, 2003; Thang
choice and patronage have been widely studied & Tan, 2003).
across the world, Mittal and Mittal (2008) posit that Research suggests that quality, price, availability of
most of these studies have been in the developed new products and product value are the product
retail markets of the west. Unfortunately, studies in attributes that influence consumer attitude (Miranda,
the retail sectors of the under-developed countries Konya & Havrila, 2005). Similarly, in another
have been scarce. study, Yilmaz et al., (2007) found that for
Loyalty can be examined from the relationship consumers, the location of the shopping mall,
between consumer’s attitude toward a product, product, price and quality, physical appearance,
brand, service, Multi chain retail or store, seller and attitude of store staff were important factors shaping
the consumer’s patronage behaviour (Dick and consumer outlet selection preferences. Yalcin
Basu, 1994). Loyalty means the stability of (2005) posit that such demographic factors as age,
repurchase of a certain brand, and to become a occupation and number of children affect Multi
patron of a certain retailer or service supplier (Jones chain retail loyalty. In their own study, Akinci et al.
and Reynolds, 2006). Store loyalty is summarized as (2007) found that the most important factors that
the dependence which is developed by the consumer affect multi product retail patronage are pricing,
upon a store that merchandises many brands. This quality and waiting time at the cashier. Again, Polat
attitude includes the place in which shopping is and Kulter (2007) found that the factors which
done rather than brands or product loyalty. Such a determine consumers’ market and Multi chain retail
case occurs due to differences that the distribution choices include product diversity, product quality,
phase provides rather than the product features. inner atmosphere and appearance, quick shopping
Thus, such a difference can be means of the service, facility, attitude and interest of staff, and prices of
price, or the closeness to the consumer (Salis, 2004). goods. In another study by Duman and Yagci
Several studies have been done to determine the (2006), it was discovered that consumers’ patronage
factors that influence store loyalty. Some of these intentions are affected by value perception, product
studies examined factors affecting patronage quality perception, service quality perception,
attitudes (Arnold et al, 1996; Duman & Yagci, discount perception and comparable price
2006). There are also studies on the factors that perception. Yeniceri and Erten (2008) investigated
impact store loyalty (Sivadas & Baker-Prewitt, the impact of trust and commitment on store loyalty.
2000; Oderken-Schroder et al., 2001; Huddleston et The quality of retailer service is generally assessed
al., 2004; Merrilees et al., 2007). In some studies, by consumers to include the appearance of staff and
their attentiveness, kindness, politeness, staff level 1993). Consumer today has immense choice to buy
of experience, safe shopping environment etc her choice of merchandize across different stores.
(Cronin et al., 2000). In addition to the foregoing, Multi-brand retail store format is one of very
special discounts and promotion were found to successful store formats in the retail sector.
increase consumers’ interest toward the Multi chain Shopping orientation would be very useful to
retail (Grewal et al., 1998a). These discounts and understand ever-changing demands and
promotions are considered as a financial sacrifice by demographic information of multi-channel shoppers
the business which attracts consumers. This due to social, economic, and cultural changes in the
perception has been determined to affect patronage modern society. The existing Indian players have
behaviour. It was seen that consumers who think widened their operations to smaller cities with the
that they have profit due to discounts promotions burgeoning Indian middle class that is demanding
displayed more loyalty to the store (Grace & latest products in these cities. Understanding
O’Cass, 2005). Another factor that affects behavior of consumers in a multi-product retail
consumers’ preferences is the quality of the chain becomes very interesting especially in the
products offered by the retailer. While evaluating presence of online channels and new entrants in the
the quality of the products that they purchase, sector. While the largest company in this sector
consumers use some cues. In another instance, Lifestyle International is expanding, the poster boy
perception of value and satisfaction were found to of Indian multi-brand retail format, Shoppers Stop is
affect consumers’ attitude and store loyalty and closing many of its stores (Jacob & Malviya, 2012;
intention to purchase (Grace & O’Cass, 2005). Tyagi, 2017). Amid news of posting losses in recent
The present study aims to understand the purchase quarters and shifting focus to online presence by
behavior of consumers shopping at Shoppers Stop. Shoppers Stop (ET-Bureau, 2016; ET-Bureau, 2017;
It also identifies the factors which influence the PTI 2017; Srinivasan, 2017), it becomes all the
purchase behavior of consumers in terms of more important to understand the behavior of
products, service, store layout and other cues. shoppers at Shoppers Stop so that it can rebound in
this rapidly changing industry sector.
Research Gap and Research Problem
Shopping orientation intends to capture the Objectives of the study
shoppers' motivations, their desired shopping In this research, we analyzed the buying behavior of
experiences, and the goals they seek when they consumers of the leading multi-product retail chain
shop. Previous research also found that shopping Shoppers Stop. We also analyzed factors that
orientation influences consumer behaviors in terms distinguish whether the consumer will prefer
of different preferences for information sources, Shoppers Stop over other multi-product retail
store choices, and store attributes (Gutman and chains. The objectives of this study are to:
Mills, 1982; Lumpkin, 1985; Shim and Kotsiopulos, 1. Segment consumers of multi-brand retail stores
retail store. Discriminant analysis was also done to different shoppers. For this, all 17 variables related
find relation between different consumer groups and to influencers and attractors (captured through
the factors responsible for influencing and attracting points 1, 2, and 3 listed in section on Research
shoppers. Cross tabulation was used for two methodology) are first tested for reliability before
purposes. Firstly, to find how visitors of Shoppers doing factor analysis.
Stop differ from non-visitors. Secondly, to find out
relative differences among different consumer Reliability Analysis: The present study uses
groups on different dimensions of analysis. cronbach’s alpha to measure the internal
consistency reliability. The reliability of the scale is
found to be acceptable with cronbach’s alpha > 0.6
Factor Analysis (Malhotra & Dash, 2016, p 291) as shown in
Exploratory Factor analysis is done to reduce the
number of variables that influence and attract
Table I.
This scale is then subjected to Principal Component statistic is 226.342 with 136 degrees of freedom,
Analysis with varimax rotation with kaiser which is significant at 0.05 level. The value of
normalization (PCA) in SPSS 20. It was analyzed KMO statistic (0.572) is also large (> 0.5). Thus
for appropriateness of factor analysis using factor analysis is an appropriate analysis technique
Bartlett’s Test of Sphericity and Kaiser-Meyer- here (Malhotra & Dash, 2016). PCA is used to find
Olkin (KMO) measure of sampling adequacy. The out components or factors (referred to collectively
null hypothesis that the population correlation as “factors” hereafter in this paper) that account for
matrix is an identity matrix, is rejected by Bartlett’s large amounts of overall variance.
Test of Sphericity. The approximate Chi-square
Component
Traditional Price Connoisse Ads Experienced Brand Contempo
Shopping Seeki ur oriented Apparel Conscious rary
ng Shopping buying buying Gifting Shopping
ShoeBag_
Excellent
Att
Acces_Att Excellent
Fam_influ
Good
enced
Fest_Att Good Fair
Cosme_At
Fair
t
Price_infl Excell
uenced ent
StoreProm
Excell
_influence
ent
d
Others_At
Excellent
t
Jewel_Att Good
Qual_influ
Fair Fair
enced
Other_Infl
V. Good
uenced
Ads_influ
V. Good
enced
Appar_Att Excellent
PastEx_inf
Good
luenced
Gift_Att Excellent
Brand_infl
Fair
uenced
Friend_inf
Excellent
luenced
Component
Traditional Price Connoisse Ads Experienced Brand Contempo
Shopping Seeki ur oriented Apparel Conscious rary
ng Shopping buying buying Gifting Shopping
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 34 iterations.
Total variance explained by the factor solution is variance explained > 50%), Kaiser’s Stopping Rule
64.14%, which is more than 50%. Communality is (Eigen value > = 1), Scree Test (Factors shown
sum of squared component loadings and represents above the Scree), and number of non-trivial factors
amount of variance accounted by all components in (factors with high loadings from over one variable).
that variable (Gorsuch, 1983). It is also suggested All these methods yielded a seven factor solution.
(Streiner, 1994) that solution should explain at least For analyzing number of non-trivial factors, factor
half of each variable’s variance, so the communality loading of variables can be categorized as excellent,
for each variable should be 0.5 or higher. It is very good, good, fair, & poor if factor loadings are
suggested (Floyd & Widaman, 1995) that in case more than 0.71, 0.63, 0.55, 0.45, & 0.32
variable communalities are low, variables with respectively (Comrey & Lee, 1992). Ignoring poor
relatively weak factor loadings on all factors can be loadings, the factor solution can be represented as
eliminated to improve the overall factor solution. shown in Table II for mentioned components. The
Communality of variable PastExperience_influencer factors are named as per variables that they
was slightly less at 0.484 but it was retained in the represent.
scale. The component solution so obtained was The seven factors identified along with their items
rotated using varimax rotation method and the are listed in Table III.
rotated component matrix was obtained.
Determination of factors is done by utilizing
procedures (Bryant & Yarnold, 1995) (Brown,
2009) of percent of cumulative variance (Total
Table III: Factor Descriptions
Buy Shoes, Bags, Accessories, Cosmetics and
Fragrances; Influenced by Family; Buy more during
Traditional Shopping festivals
Price Seeking Influenced by Price and Store Promotions
Using elbow method in k-means non-hierarchical respective cluster centroids is plotted for each k i.e.
clustering using, the number of appropriate clusters number of clusters and the elbow in the graph
is revalidated as three (Christopher, Prabhakar & determines the appropriate number of clusters. The
Hinrich, 2009). In elbow method, the sum of graph in figure 1 clearly validates that the
squared distance of all members from their appropriate number of clusters is three in this case.
significantly between three consumer groups on the Results show that a consumer mostly visits multi
basis of these seven factors. Therefore, these factors product retail chains for apparels and accessories.
although important for overall group could not be The consumer visits Shoppers Stop due to three
used to find differences among these consumer important factors - quality, in-store promotions and
segments. brand name. Consumer still prefers to buy in a
In general, results show that family members physical store over online stores. Consumer
accompany about 50% of visitors and also influence purchase behavior changes positively with price of
50% shoppers in final decision making. Friends are the product and availability of products. Consumer
next most significant sets of people (with 2 out of 5 purchase behavior changes negatively due to poor
visitors) accompanying shoppers in the store and quality of products.
influencing them in decision making (2 out of 5
shoppers). Thus, those accompanying shoppers have Comparing shoppers of Shoppers Stop and
greater influence on their decision making. Competition
Irrespective of the age, females spent a considerable There is hardly any difference between shoppers of
amount of time shopping as compared to the male Shoppers Stop and those of competition in terms of
counter parts. These attributes were identified as age group (Sig. of chi sq. = 0.094), occupation (Sig.
important for respondents while shopping at a retail of chi sq. = 0.910) and gender (Sig. of chi sq. =
store - Variety (60%), Quality (47%), Consumer 0.592). There are no differences between two
Satisfaction (45%), and Offers & Promotions groups in terms of buying for festivals (Sig. of chi
(43%). Shopper's Stop has variety of products for a sq. = 0.285) or gifting (Sig. of chi sq. = 0.180). Both
particular brand but does not have all major brands groups are similar in buying apparels (Sig. of chi sq.
under its Umbrella. Brands like Zara, Jack and = 0.534), cosmetics (Sig. of chi sq. = 0.557), shoes
Jones, AND etc. have their standalone shops which and handbags (Sig. of chi sq. = 0.583). Both groups
is the reason why most of the respondents had do not differ in terms of being influenced by
mentioned Variety as one of the lacking attributes advertisements (Sig. of chi sq. = 0.297), price (Sig.
for Shopper's Stop. The data shows that ads seldom of chi sq. = 0.189), product quality (Sig. of chi sq. =
influence these buyers but all are influenced by in- 0.123), in-store promotions (Sig. of chi sq. = 0.260),
store promotions greatly. past experiences (Sig. of chi sq. = 0.326).
Both groups differ on several other aspects higher category (Rs 3000-Rs 5000) at Shoppers
including income level and other buying preferences Stop than those at competition.
like money spent per visit and time spent per visit. Most shoppers of Shoppers Stop prefer to go with
Shoppers Stop has more representation from income friends whereas more non-shoppers prefer to go
group of Rs 15000-25000 whereas competition has with family. Accordingly, more shoppers get
more representation from income group of less than influenced by friends whereas more non-shoppers
Rs 15000. In terms of percentage of shoppers who get more influenced by family. Shoppers of
spend more than 30 minutes per visit, 84% shoppers Shoppers Stop get influenced by brands whereas
of Shoppers Stop compare fairly ok with 100% non-shoppers do not get influenced by brands.
shoppers of competition. Shoppers Stop has less About half of shoppers of Shoppers Stop buy
consumers at 38% who spent between Rs 1000 – Rs accessories whereas very few non-shoppers buy
3000 compared with 50% of competition whereas accessories. In comparison to non-shoppers, very
Shoppers Stop has more consumers at 34% who few shoppers of Shoppers Stop buy jewelry. Table
spent between Rs 3000 – Rs 5000 compared with VII shows all these differences between shoppers of
22% of competition. Thus, even though % of Shoppers Stop and Competition.
consumers who spend between broad range of Rs
1000 – Rs 5000 are almost same at Shoppers Stop In terms of features of a multi-brand retail store,
and competition, more consumers spend money in different attributes received highest importance by
shoppers of Shoppers Stop and those of
competition. Compared with competition’s competition’s consumers rated store layout and
consumers, Shoppers Stop consumers rated location of store as more important. There was not
Exchange and return policy, Staff behavior and much difference in their rating of parking facility.
Billing facility are more important. Conversely,
Table VIII: Importance of store attributes for shopppers of Shoppers Stop and Competition
Shoppers at Shoppers Stop Competition
Exchange and return policy 43% 07%
Staff behavior 10% 00%
Billing facility 08% 00%
Parking facility 09% 14%
Location of store 14% 36%
Store layout 16% 43%
Consumer Profile
Profile of Shoppers Stop consumer- On the basis accessories. Most of these shoppers go to
of above, we can describe a shopper at Shoppers competition primarily due to store layout, and
Stop in income group of Rs 15000 – Rs 25000 per location of store.
month, spending mostly over 30 minutes at
Shoppers Stop. This shopper shops mostly with Segmenting consumers based on cluster analysis
friends (and sometimes alone) at Shoppers Stop to Compared with the sample average, more
buy goods worth Rs 1000 – Rs 5000 per visit. This consumers in cluster 1 and 3 are women and more
person gets influenced by brands and favors buying in cluster 2 are men. Occupation wise, cluster 1
accessories over buying jewelry. Most of these represents the sample characteristics whereas cluster
shoppers to go to Shoppers stop due to its exchange 2 has more salaried and business people. compared
and return policy and some due to store layout and with the sample average. In terms of monthly
location of store. income, cluster 1 has more shoppers from income
groups of Rs 15,000-25,000 & Rs 25,000-50,000
Profile of Competition consumer- Similarly, we whereas cluster 2 has more shoppers from income
can describe a shopper at competition in income groups of Rs 50,000-75,000, Rs 75,000-100,000 and
group of less than Rs 15000 per month, spending above Rs 100,000. Cluster 3 has most people in the
always over 30 minutes. This shopper shops with income group of less than Rs 15,000. Cluster 1 and
family and buys goods mostly worth Rs 1000 – Rs 2 do not differ much in terms of age groups but the
3000 per visit. This person is not influenced by cluster 3 has more consumers in age group of 18-25
brands and favors buying jewelry over buying years. These demographic characteristics can
indicate the professional life stage of predominant working professionals spend between 1 hour and 3
consumer group. On the basis of professional life hours per visit.
stage of predominant consumer group, these clusters
are named as Career beginners (Cluster 1), Working Shopping companion & companion influence –
professionals (Cluster 2) and Students (Cluster 3). As shown in Figure 2, only 10% students go alone
Remaining interpretation uses these terms for these whereas for career beginners and working
three consumer segments. professionals, this is 23% and 25% respectively.
More students (cluster 3) shop at their multi-brand Most students go with their friends whereas only
retail store either “once in 3 months” or “less than half of working professionals go with friends.
once in 3 months”. The career beginners (cluster 1) Conversely, more working professionals go with
shop mostly once in 3 months whereas working family as compared to students. Accordingly, more
professionals (cluster 2) shop mostly either “once in students get influenced by friends and more working
a week” or “once in a month”. More students and professionals get influenced by family. This is
career beginners spend between Rs 1000-3000 per expected as students get less time once they move to
visit whereas more working professionals spend professional life and try to shop more with family
between Rs 3000-5000 per visit. Similarly, more than with friends gradually.
students and career beginners spend between 30 Figure 2: Shopping companion & companion
minutes to 1 hour in a buying visit whereas more influence
Influencers of buying decisions- As life stage influence of brand follows opposite pattern. This is
progresses from students to working professionals, explained as due to shifting priorities in these life
the influences of price, quality, past experiences, stages. Career beginners have to put extra efforts in
and other factors first reduce and then increase. The establishing themselves in new jobs, they would
rely more on strong brands rather than assess working professionals life stage whereas influence
products on price, quality and past experiences. As of in-store promotions reduces due to more maturity
shown in Figure 3, the influences of ads and in-store and deliberate thinking of working professionals as
promotions also follow opposite patterns. The compared to students.
influence of ads increases from student life stage to
Buying occasions – The graph in Figure 4 shows then reduces with increase in familial and social
different buying occasions when these three responsibilities. Due to same reasons, the buying
consumer groups shop in a multi-brand retail store during festivals first reduces on entering the
like Shoppers Stop. As a student begins career, his professional life but later increases with more
regular buying at multi-brand retail store increases mature life stage when focus shifts to greater
due to sudden increase in disposable income and responsibilities.
Merchandise bought – As shown in Figure 5, the starts to buy more cosmetics, fragrances, home
purchase of apparels, shoes and handbags increase décor and other products from multi-brand retail
at multi-brand retail stores as one becomes a stores but consumers reduce buying these at a multi-
matured working professional whereas use of brand retail store as they establish themselves in
accessories and jewellery reduces in the working their professions.
professional life stage. As one enters the career, one
Consumer suggestions -Top two suggestions that therefore exchange and return policy emerged as the
consumers gave to improve experience at Shoppers’ most important store attribute for these two
Stop were- consumer segments. Working professionals consider
1. Adding more variety: This is the suggestion location of the store as second most important
given by over 40% of each consumer attribute, may be in terms of how close the store is
segment. to their home to office route in order to save time
2. Giving better offers and discounts: This is and energy.
the second highest suggestion given by
student segment (21%) and working Store layout is a very important attribute for
professionals (14%). students and career beginners, especially for career
3. Better layout: This is the second highest beginners. Career beginners who just start their
suggestion by career beginners segment profession focus more on their new career, have
(10%). paucity of time, and thus consider store layout as
very important attribute followed by behavior of the
staff at the multi-brand retail store. This segment of
Implications for Marketing Managers
consumer may be adjusting to their new life stage in
This research highlights different factors that
terms of new job and increased responsibility.
influence consumers of multi-product retail stores.
Therefore, the implication for marketers is to create
The research also categorizes consumers into three
such store layout so that these consumer segments
prominent groups based on their life stage as
can purchase their preferred products easily and
students, career beginners and working
comfortably. Shopper's Stop is a prominent multi-
professionals. Understanding retail consumers based
brand retail chain, which is favored by consumers in
on their life stage has several important implications
different age groups throughout their life stages.
for the marketers. These primarily relate to changes
This may not be generalized for all stores but may
in store design, preferred store attributes and types
be improved by conducting appropriate market-
of products required for succeeding in multi-product
basket analyses for different stores.
retail. Marketers need to design specific attributes of
their stores for catering to specific consumer
The brand recall across categories included all multi
segments.
national brands except one local brand Biba. This
may imply that consumers get attracted to a multi-
As shown in
brand retail store due to foreign brands. In absence
Table V, the exchange and return policy is the most
of actual sales data, we may not conclusively say if
important store attribute for students and working
foreign brands have higher sales. But it seems that
professionals. As shown in Figure 3, influence of
home grown brands also have some scope in such
quality and price on students and working
stores. Across segments, consumers have suggested
professionals is higher than that on career beginners
to add more variety despite so many international during festivals. Therefore, Shoppers Stop can build
brands already present at Shoppers Stop. One more private labels in its range of offerings.
method for this can be to build private label brands Recently, this was realized at the company level
that career beginner segment can easily relate to if also and the Shoppers Stop plans to build more
brand is developed properly. These career beginner private labels (Srinivasan, 2017). This research
consumers consider brand strength for their gives support to this strategy. This study also helps
purchases and do not give high importance to price in finding important points of differentiation for
and quality. Private labels can also appeal to Shoppers Stop in this fast changing industry. It also
working professionals who devote large amount to outlines certain key areas of improvement for the
time to purchase high value items and prefer to buy company.
Location of store and Store layout: These two hours per visit and spend in higher category of Rs
attributes are rated important by all shoppers (Table 3000- Rs 5000 per visit as compared to students and
VIII) but for shoppers of competition, these are career beginners who spend less than one hour and
highest rated attributes. If Shoppers Stop promotes spend between Rs 1000- Rs 3000. Shoppers Stop
these two attributes, competition shoppers may also can try to attract more working professionals
try Shoppers Stop and may become loyal due to highlighting excellent exchange and return policy
their exchange and return policy. and location of store.
Targeting working professionals: Working Adding more variety and improving store layout:
professionals spend time between one and three The highest rated consumer suggestion to Shoppers
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