BUSINESS RESEARCH METHODS

PROJECT

CONSUMER BEHAVIOUR TOWARDS

SINGLE BRAND AND
MULTI BRAND APPARELS OUTLETS

SUBMITTED BY SUBMITTED TO

G20 - Bhakti Bhardwaj

G26 - Col. Rishi Raj Charan
G27 - Shivani Gupta Ms Tavishi
G46 - Ayush Manchanda
G51 - Prabal Garg
Introduction
In today’s retail scenario, because of demographics, and the varied options
available to a huge span of customers, the choice between single and multi-
brand outlets has become very difficult. The retail industry originally exhibited
the concepts of single brand outlets, brick and mortar stores, mom and pop
stores, which dominated the industry for years especially due to the market
conditions and economic history of India. The unorganized apparel retail sector
had predominantly catered to the Indian market. However with due passage of
time, and, changes in trends, spending pattern, purchasing power, market
conditions, commercial trade laws, - various national and international
companies have ventured into and explored the Indian market and established
business on solid grounds exploiting the economies of scale, diversity,
increasing financial growth.

Consumer behaviour towards single and multi-brand outlets depends not only
on the efforts made by retailers to offer as many as services, stores, offerings,
SKU’s, but also on perception, outlook of the target potential customers.
Moreover, with so many complexities of human behaviour, of economic
conditions and policies such as FDI, associating only a particular reason for
consumer’s preference of single brand over multiple or the other way round
would be unjustifiable.

A consumer’s shopping behaviour in today’s time comprises of a lot of things,

from past experience, to perceptions, to expectations, customer or brand
advocacy, evaluation of needs. However, like in every phenomenon, in retail
too there may be regularities in patterns, trends, statistics, or any substantial
findings that may help understand somewhat if not completely how consumers
behave or what drives their preference. This understanding may help one
speculate and in turn hunt for more evidence and data with the aim to learn
more each time taking the help of all the learning of the past. Often behaviour
may change just subject to time even if other factors had little or no change.
Hence even common phenomenon like consumer behaviour towards single
and multi-brand outlets may be beneficial to study again as it may reveal
certain facts that may have not been unearthed in prior researches of similar
nature.

Literature Review
Multi-brand or mono-brand?
http://www.channelbusiness.in/index.php?option=com_content&task=view&id=228&Itemid=78
Consumer behaviour is to change, many exclusive retailers will become
franchisees of the big names in multi-brand retailing and in the time to come.
The trend will be driven by the type of user - First-time buyers would prefer to
buy from multi-brand stores as they can compare different brands, while a
second-time buyer, if happy with his first brand experience, would prefer to
buy from an exclusive store.

Multi-Brand Benefits
http://www.franchiseindia.com/magazine/2013/July/OF-MULTI-BRANDS-BENEFITS.1071
Multi-brand outlets franchising has started gaining ground as consumers like to
pick from a wide option of brands with varied price points. Whereas in case of
Exclusive Brand Outlets, only one brand's offerings are retailed and it's meant
for only the brand's loyal customers who love to buy from that particular store
only.

Impact of Visual Merchandising on Consumer Behaviour

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2481859
From the analysis it is found that window display, store front, store layout and
organization and creative combination of colours are significantly related to
the purchase behavior of the customers. The variables being merchandise
display, signage/graphics and store environment do not have relationship with
purchase behaviour.

A study on consumer buying behaviour towards branded apparels

http://apjor.com/downloads/0109201625.pdf
Consumers are increasingly becoming brand conscious and are opting for
apparel with brand images or logos as with growing awareness and fashion
sensibility as a means of self-expression among consumers, demand for more
choices and products serving both fashion and performance needs are
evolving. The number of people visiting the showroom with a brand in mind is
same as the number of people visiting the showroom with no brand in mind.

Consumer Behaviour towards Clothing Apparel of Designer Brands

http://www.fbs-du.com/bn/admin/login/news_event/14664869149.pdf
The consumer has become brand conscious and the market of designer brands
is growing up. Consumers believe that boutiques and fashion houses are now
able to beautifully balance a combination of aesthetically pleasing design with
uniqueness and fashionable trendiness. Consumers look for designer brands to
go with their native image. Today the fashion and image conscious young and
middle class people also tend to wear designer clothes while they find it
affordable.

What potential strategies for multi brand stores can countervail the
increasing competition from mono brand stores?
http://kennisbank.hva.nl/document/642209
The majority of the consumers prefer to shop at mono brand stores, because
of the streamlined brand image and shopping experience. When they shop in
brick-and-mortar stores they want to have a quality shopping experience,
where they are submerged in the brand’s image. When consumers aren’t
looking for a specific brand, but are making functional purchases, they do tend
to visit multi brand and department stores due to the product and price
offerings. Even though, the majority of the consumers have become more
brand-loyal. Adapting to the financial crisis has caused this.

A study on factors determining consumer buying behaviour in shopping

malls
http://www.academia.edu/25190106/
A_STUDY_ON_FACTORS_DETERMINING_CONSUMER_BUYING_BEHAVIOUR_IN_SHOPPING_MALLS
The shoppers or consumers are highly attracted towards the shopping malls
due to various factors like quality, quantity, ambience, recreational and
entertainment facilities, variety of product choices etc. The people are
considering shopping malls as not only a place of shopping but also a place for
hanging out with friends and relations, meeting the old friends, entertainment
and movies, refreshment and dinning etc.

Analysing the customer preferences with respect to Indian and

international kids wear brands
http://www.elkjournals.com/MasterAdmin/UploadFolder/ANALYZING%20THE%20CUSTOMER%20PREFERENCE/
ANALYZING%20THE%20CUSTOMER%20PREFERENCE.pdf
As per the store preferences, multi brand outlets especially with play area are
preferred more by parents. This helps the kids in getting engaged into fun
activities while they shop. The major decision making is done on the
conscience of parents as well as kids. Also that the sizes of kids garments keep
varying because of growth, the purchases are more planned unlike the impulse
buying of youth. Parents and guardians are not price conscious hence they
prefer going for organized retailing and are also ready to pay more for each
clothing category. Colour is the greatest factor affecting the shopping pattern
whereas ambience of the store plays the least role.
An investigation of Consumer Specialty Store and Multi-Brand Store
loyalty
https://doaj.org/article/260a2a3287e944bfaccef6b2aa90b88d
Image of the store influences consumer preference, and effects on brand
commitment and trust factors. The stores which have favourable image among
consumers have high degree of brand commitment and trust. The same
happens for brand image, the only difference is that the female consumers are
not very much concerned about brand image, because in INDIA, for female
apparel sector, most of the retail outlets are family owned, so the brand name
is store name, because most of the retailer sell non branded products, whether
in ethnic or western attire dresses or their accessories. Brand commitment and
trust act as mediating factor, and play an important role to understand the
preference of retail stores. Out of these two, trust is the most vital element
and it also works as facilitator to brand commitment and program loyalty.

The effect of store environment on consumer evaluations and

behaviour towards single brand apparel retailers
trace.tennessee.edu/cgi/viewcontent.cgi?article=1925&context=utk_graddiss
Both cognitive evaluations toward store and merchandise were found to have
significant effect on affective evaluations toward store and merchandise,
respectively. Cognitive evaluations toward merchandise and affective
evaluations toward store were not found to have a significant effect on
approach-avoidance behavior. The hypotheses to test the store as a brand‘
concept was supported, thereby leading to the conclusion that consumers
indeed view the store and the merchandise carried by the single-brand apparel
retailer as a single entity.

A study on consumer behaviour towards organized and unorganized

retails stores
https://www.ijmrbs.com/view.php?iid=52
The growth in the Indian organized retail market is mainly due to the change in
the consumer’s behaviour due to increased income, changing, lifestyles, and
patterns of demography which are favourable. Now the consumer wants to
shop at a place where he can get food, entertainment, and shopping all under
one roof. While on the other hand the traditional stores are shops where the
various product available are the range of product really required by the
customers. They cautiously take care of the choice of the customers and bring
the product which is demanded by them. They try to satisfy them with the
wide range and at the same time maintain a good relationship to retain them
and consequently convert them into their loyal customer.
Specialty Store and Multi-Brand Store loyalty: An Indian consumer
perspective
journal.ui.ac.id/index.php/amj/article/view/3056
Brand image congruity and store image congruity have positive effect on trust,
Consumers have strong relationship with brands that they buy and repeat
purchase behaviour of the consumer depends on the value which consumer
get. The feeling which consumers get from store personnel and store
atmosphere build behavioural and attitudinal loyalty, and if the store provides
special repeat purchase offers, then consumers repurchase frequency
increases. Those consumers who trust the brand and feel attachment with it
are also loyal to the programs provided by that store and ready to pay more
for that brand.

Impacts of Store Environmental Cues on Store Love and Loyalty: Single-

Brand Apparel Retailers http://www.tandfonline.com/doi/abs/10.1080/08961530.2013.759044?
src=recsys&journalCode=wicm20
Based on the stimulus-organism-response (S-O-R) model, this study examined
whether and which store environmental cues (S, i.e., ambient, design, social,
and merchandise) increase consumer/store emotional attachment and
whether this attachment leads to store loyalty in the context of a single-brand
apparel store. To capture the consumer/store emotional attachment, the store
love construct was used as the mediator between store environment and store
loyalty. The results indicated that design and merchandise cues positively
affected store love. Also, store love was determined to be a significant
predictor of store loyalty.

The store-as-a-brand strategy: The effect of store environment on

customer responses
www.researchgate.net/publication/263049643_The_store-as-a-
brand_strategy_The_effect_of_store_environment_on_customer_responses
This study explores the effect of store environment on customers’ internal
evaluations and behaviour toward single-brand apparel retailers. Further, to
understand the store-as-a-brand strategy, this study examined whether
customers have similar cognitive and affective perceptions toward the store
versus merchandise. A mall intercept survey was conducted and a non-
recursive structural equation model was employed to test the proposed
hypotheses. This study found that social, design, and ambient cues as well as
merchandise cues influence internal evaluations and ultimately approach
behaviour toward single-brand apparel retailers. This study also affirmed that
the store-as-a-brand concept is valid for a single-brand apparel retailer.
The Effect of Retail Store Image Dimensions on Consumer’s Purchase
Intention of Private Label Brands - International Journal of Research in
Finance and Marketing
http://euroasiapub.org/wp-content/uploads/2016/12/9FMNov-4253-1.pdf
Private label brands, considered a store differentiator is a rising phenomenon
in the growing Indian organised retail market. Consumers use store image as
an evaluative criterion in the decision making process concerning purchase of
private labels at department stores. The primary purpose of this study is to
examine the influence of store image on Indian consumer purchase intention
of private label brands. Using the structured questionnaire, data was collected
from department store customers of varied socio-economic background. While
examining the store image constructs, six factors of store image were
extracted through factor analysis. The findings demonstrated that the
identified store image dimensions - ‘Sales Personnel and Store Association’;
‘Promotion and Institutional’; and ‘Merchandise’ have significant impact on
Private Label Brands’ Purchase Intention. However, store image dimensions
‘Atmosphere’; ‘Service’; and ‘Convenience’ do not have any significant impact
on purchase intention.

Story Atmosphere Factors Driving Customer Purchase Intention – An

exploratory Study
http://www.bvimsr.com/documents/publication/2014V6N2/03.pdf
The product quality and variety influences the purchase decisions the most but
strongly followed by the impact. Consumer spending behaviour can be
significantly influenced by the store atmosphere and the customer mood.

Consumer Perspective on changing phase of Indian retail industry

http://serialsjournals.com/serialjournalmanager/pdf/1435641853.pdf
Though India is the last among the large Asian economy to liberalize its retail
sector, a number of Indian retailers are entering this nascent, though dynamic
market and numerous International names have evinced interest. Market
liberalization and increasingly assertive consumers are sowing the seeds of a
retail transformation that will bring bigger Indian and multinational players on
to the scene.

Consumer Behaviour and preferences of Indian consumers towards

apparel purchase in retail markets of India.
innovativejournal.in/ijbm/index.php/ijbm/article/download/31/28
An interesting outcome of this study is the influence of domestic apparel
manufacturers on the young consumers. The young consumers prefer
domestic products than international products and that is because the
domestic products understand the consumer better and products are based on
nativity and suits their needs than international products. Although
international products possess more quality, consumers still consider those as
luxurious ones with high price.

Consumer Preferences and Brand Perception between Multi-brand

outlets and Specialty Showrooms
https://poseidon01.ssrn.com/delivery.php?
ID=688122102001094086071115081018071010008052036016012051099105099096084103027122075000048033054047
028030013076000029067091099081114009013016010008109001067017097018023066019056103120126010124113028
065112104074100121065120100009106007078125025084065085067&EXT=pdf
Multi brands outlet were mostly preferred by the rural respondents and
specialty showrooms were preferred by the urban respondents, with the
increase in the disposable income even the rural population are having their
inclination towards multi brand stores. The choice of the format mainly
depends upon the shopping attitude of the customers. Multi brands outlets
generally offer the best possible leisure shopping experience and specialty
outlets are concentrating on focussed customers. Speciality showrooms like
Spyker, Liliput, Fab India , Biba etc. attract fashion conscious , novelty seeking
urban Indian Population. But Multi brands stores are targeting middle class and
upper middle class segment. Multi brands stores would remain as an
entertainment destination for the rural and middle class Indian families.
However speciality showrooms are highly class oriented.

Buying Decisions of men’s Shirts: Single Brand Showrooms vs Multi

Brand Retail Outlets Perspective
http://www.researchersworld.com/vol1/Paper_10.pdf
It is concluded in the study, that all the demographic factors and purchase
pattern factors do not have significant influence on the buyer’s choice of retail
outlet. Showroom specific factors also do not have influence on the buying
behaviour of retail outlet except location of shops. Raymond, a leading brand
is the most preferred brand and possesses a high degree of positive attributes.
In ranking by customers, the quality factor occupies the first position: Colour
and design, Comfort and style are securing successive ranks respectively. The
total scores and mean scores lead to the conclusion that single brand
showrooms have a slight edge over the multi brand showrooms.

An investigation on consumer behaviour and preferences towards

apparel, purchase by Indian consumers of the age15 –25
http://bada.hb.se/bitstream/2320/9248/1/2011.9.7.pdf
Apparel were once purchased once a year or based on necessity and today this
scenario has completely changed and in the age group of 15 - 20 frequent
buying is seen with a gap of three months. This can be attributed to increased
buying power. An interesting outcome of this study is the influence of
domestic apparel manufacturers on the young consumers. The young
consumers prefer domestic products than international products and that is
because the domestic products understand the consumer better and products
are based on nativity and suits their needs than international products.
Although international products possess more quality, consumers still consider
those as luxurious ones with high price. The study also shows that in the age
group of 15 - 20, there is a huge buying seen and more amounts is spent on
buying apparels because of unplanned purchases and directionless purchases

A Study on Purchase Intentions of Consumers towards Selected Luxury

Fashion Products with special reference to Pune Region
http://www.dypatil.edu/schools/management/wp-content/uploads/2015/11/A-Study-on-Purchase-Intentions-of-
Consumers-towards-Selected-Luxury-Fashion-Products-with-special-reference-to-Pune-Region-Rimpy-Goyal_.pdf
Higher income group people buy luxury fashion brand products. High Quality,
Best design and aesthetic and esteem of brand are the top three reasons for
purchase of Luxury product. Media is the top most influencer for purchase of
Luxury products and Brand Trust is the top most brand variable drives
customer for purchase of Luxury products.

Impact of Consumer Perception on Buying Behaviour in Apparel Retail

Sector, with special reference to Selected Indian Cities
http://www.pondiuni.edu.in/sites/default/files/retail-shopers-behavior-260214.pdf
While nearly 80% of the respondents have positive perception and preference
for branded apparels than unbranded apparels, only 50% have preference for a
specific brand. This is an eye opener for the companies in the business of retail
apparel sector. Good image of the brand is by and large the most prominent
factor for positive perception towards the brand. This is followed by good
advertising for the brand, good sales for the brand and value for money vis-à-
vis price of the brand, in that order. Nearly 95% of the respondents believe
that advertising is an effective medium of creating positive perception for the
brand among consumers. Nearly 70% of the respondents agree to the fact that
endorsement by celebrities does effect their perception towards the brand.
Majority of the respondents disagree that gimmicks and publicity stunts have
any effect on their positive perception towards the brand. Nearly 93% of the
respondents agreed that sales promotion does effect their positive perception
towards the brand. Nearly 50% of the respondents agree that convenience of
shopping as provided through telemarketing and e-marketing helps in
increasing their positive perception towards the brand. Nearly 79% of the
respondents agree that the price of the brand plays a very significant role in
creating positive perception towards the brand. Nearly half of the respondents
i.e. nearly 51% agree that international presence increases image of the brand,
thus effecting positive perception towards the brand. Nearly half of the
respondents i.e. nearly 48% of the respondents have agreed that social and
environmental sensitiveness by a company increases positive perception
towards the brand thus effecting consumers` buying behaviour.

A Study on Consumer Preference Towards Textile Retail Outlets

www.bestjournals.in/download.php?fname=2-14-1388995179-6.%20Manage...
Majority of the respondents who purchase in the showrooms are male. It is
also found that the trend of only women going for shopping has changed and
now even men do shopping more often than women. The respondents are
seen to give more preference to the collections while choosing the showroom.
From our study we also found that the consumers’ major mean of awareness is
through advertisements.

An Investigation of Consumer Preferences Towards Store Brands

Purchase in Madurai District
http://shodhganga.inflibnet.ac.in/bitstream/10603/73746/1/05.06.2015.pdf
Factors increasing favourable attitudes towards store brands will have a
positive effect on the purchase of store brands. It has been proved that other
factors like ‘Convenience’; ‘Price Consciousness’; ‘Price-Quality Association’
and ‘Quality Variable’ have shown positive influence on store brands of
different retail segments. Finally, the research work has proved that positive
association exists in store image, consumer satisfaction and store loyalty rather
than the brands offered by the retailers as store brands. The research identifies
that store brands are not only the important factors which influence
consumers to select a store. All other factors like ‘Value for Money’; ‘Wide
Range of Promotional Offers’ and ‘Extensive Varieties of Products’ have
become the important store choice attributes while choosing a store. This
research confirms that store image plays an important role in attitudes
towards store brands. It further proves that store image, customer satisfaction
and store loyalty are the major constituents which drag the consumers to visit
the store repeatedly and to remain loyal to the store thereby fetching huge
profit to the store.
Influence of Retail Atmospherics on Customer Value in an Emerging
Market Condition
https://www.greatlakes.edu.in/pdf/Herald/Vol4/Chapter1.pdf
The five explanatory variables, measured in the study, may be considered,
acted upon, and administered in a retail store's marketing strategy. For
example, the findings of this study suggest that retail customers give greater
value to olfactory and tactile factors such as air conditioning facility, ambient
scent, and soothing atmospherics. Design factors such as window dressing,
shelf arrangements and displays, architecture, etc., should not be ignored.

Determinants of Consumer Buying Behaviour Through Shopping Malls in

Jabalpur & Mumbai City
http://www.socialresearchfoundation.com/upoadreserchpapers/2/17/1502060533171st%20%20uma%20neb.pdf
Mostly head of the member of family go to the market for purchasing. The
Reason why most consumers buy in mall is the feeling of comfort and ease
when buying product or goods in shopping mall. All goods are available in one
place and product’s quality is also superior in malls. Discount is also a further
reason buy products from mall. But some consumers which are not prefer
shopping malls , the reason was product’s price are generally high because of
service tax and no bargaining in that place and so many things were confuse
them.

An Analysis Of In Store Environment Ambience Factor Influence On

Consumer Behaviour
http://www.ku.ac.ke/schools/business/images/stories/docs/AN_ANALYSIS_STORE_ENVIRONMENT_AMBIENCE.pdf
The study found that the background music played had no relationship with
customers’ shopping behaviour. Lighting does influence longer stay in the
supermarket, but does not influence the amount of money spent in the store
and the purchasing of an increased number of goods. Majority (68%) of the
customers surveyed found the supermarket stores to have a pleasant scent,
which correlated strongly with consumer behaviour. Additionally, the study
found that scent has no significance with the desire to spend more money in
the supermarkets or the desire to return to shop from the store in future. The
study also concludes that pleasant scent reduces the chances of customers
leaving the supermarket hence encouraging customers to browse more
merchandize.

Gap Area
The Literature review highlights that research scholars, experts,
researchers have not explored if the various factor that influence
consumer behaviour can be grouped on the basis of their similarity or
common characteristics and the magnitude or intensity of influence of
each of these if data collected facilitates analysis for the same.

Research Methodology
Our research would be a pure research and not applied since the aim is
not to identify certain decisions to be taken but to understand a
phenomenon and its underlying reasons. On another basis of
classification, the research we choose would be Descriptive since we
have no intentions to reach to conclusions for making decision making.
Also since the observation was not conducted over a span of time it
would be Cross Sectional. The questionnaire was designed with the help
of Google forms for ease of handling responses. The link to the
questionnaire was given out primarily to MBA students thus of the age
group 20 to 26 mostly studying in Delhi/NCR.

Sources of Information
Primary Data - Questionnaire containing 7 variables each in favour of
and against Multi-brand outlets.

Target Population
Age- 18-30yrs
Occupation - Students/Self-Employed
Location - Delhi/NCR

Sampling Techniques
Non- Probability Sampling- Due to unavailability of list of population,
probability sampling which is recommended over non probability
sampling could not be executed for the research,

Questionnaire Designing
VARIABLES AUTHORS YEAR
Diversity Hoch and Banerji 1993
Store Loyalty Quelch and Harding 1996
Price Narasimhan and Wilcox 1998
Product purchase parameter Miao 2003
Cost saving and Store loyalty Fernie et al 2003
Store choice attributes Alhemoud and Keller 2004
Search Experience Batra and Sinha 2000
Search Experience Swai 1998
Store choice attributes Ailawadi et al 2001
Store choice attributes Batra and Sinha 2000
Store choice attributes Alhemoud and Keller 2004
Price Quality association Lichtenstein et al 1993
Consumer satisfaction Thenmozhi and Dhanapal 2010
Convenience Chen 2005
Store Loyalty Gabrielsen and Sørgard 1999
Store Loyalty Thenmozhi and Dhanapal 2010

Operational Definition of the Variables

Variety - variety refers to the number of brands offered in a store. Eg:
size, colour
Budget - It refers to the total disposable income of a customer which is
used to buy some accessories.

Offers - It refers to some discounts and promotion used to increase sales.

Location - It refers to the geographical co-ordinates of a store.

Loyalty - It is defined as positive feelings towards a brand and dedication

to purchase the same product or service repeatedly now and in the future
from the same brand, regardless of a competitor’s actions or changes in
the environment.

Shopping Time – It refers to time and efforts spent by a consumer in

store while making a purchase of some goods.

Data Analysis
Since responses showed strong preference towards Multi Brand outlets
over Single Brand Outlets as can be seen from the descriptive statistics
carried out, further testing was carried out on the data from responses of
those favouring Multi Brand outlets only. Since the GAP area highlighted
the need to understand whether factors that influence consumer
behaviour towards single and multi-brand outlets could be grouped on
the basis of some commonality among them or not, and since the crux of
the responses is derived from questions framed using a 5 point Likert
Scale, the factor analysis tests falls to be the most suitable test for this
research. The factor analysis test generates a number of tables depending
on the options chosen.

Preference
Frequency Percent Valid Cumulative
Percent Percent
Yes 125 80.6 80.6 80.6
Valid No 30 19.4 19.4 100.0
Total 155 100.0 100.0

The
factor
analysis test generates a number of tables depending on the options
chosen. The first table in the Output is a Correlation Matrix showing how
each of the 7 items is related with each of the other. The tables show that
some of the correlations are high (eg, + or - .60 or greater) and some are
low (i.e., near zero). The high correlation indicates that two items are
associated and will probably be grouped together by the factor analysis.

Correlation Matrix
QUANTITY
BUDGET SIZE IN STORE EASE OF LOYALTY SHOPPING
Correlation OF
FIT AVAILABILITY OFFERS LOCATION PLANS TIME
OPTIONS

QUANTITY OF
1.000 .558 .400 .216 .283 .074 .405
OPTIONS

BUDGET FIT .558 1.000 .450 .383 .289 .073 .170

SIZE AVAILABILITY .400 .450 1.000 .365 .341 .226 .351

IN STORE OFFERS .216 .383 .365 1.000 .261 .225 .268

EASE OF
.283 .289 .341 .261 1.000 .408 .339
LOCATION

LOYALTY PLANS .074 .073 .226 .225 .408 1.000 .258

SHOPPING TIME .405 .170 .351 .268 .339 .258 1.000

The KMO should be greater than .60, and is inadequate if less than .50.
The KMO test value comes to .726 which indicates that factor analysis
may be considered an appropriate technique for analysing the correlation
matrix and that the sample is adequate. The Bartlett test should be
significant (i.e., significance less than .05). The Bartlett test significant
value is .000 which means the matric is not an identity matrix. The same
can be confirmed looking at the Component Transition Matrix.
 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
.726
Adequacy.
Bartlett's Test of Approx. Chi-
194.273
Sphericity Square
df 21
Sig. .000
Component Transformation Matrix
Component 1 2
1 .793 .609
2 -.609 .793

The Communalities indicate the amount of variance in each variable that

is accounted for.
Communalities
Variables Initial Extraction
QUANTITY OF PTIONS 1.000 .656
BUDGET FIT 1.000 .713
SIZE AVAILABILITY 1.000 .543
IN STORE OFFERS 1.000 .364
EASE OF LOCATION 1.000 .577
LOYALTY PLANS 1.000 .737
SHOPPING TIME 1.000 .424

The Total Variance Explained table shows how the variance is divided
among 7 possible components/factors. There are two factors that have
eigenvalues greater than 1.0, which is a common criterion for a factor to
be useful. As shown in Total Variance table, the cumulative variance is
57.325 which explain that nearly 58% of the variability is given by the
model. The cumulative variance should actually be above 60%.

Total Variance Explained

 Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues
Loadings Loadings
Component
% of Cumulative % of Cumulative % of Cumulative
Total Total Total
Variance % Variance % Variance %
1 2.846 40.655 40.655 2.846 40.655 40.655 2.223 31.756 31.756
2 1.167 16.670 57.325 1.167 16.670 57.325 1.790 25.569 57.325
3 .835 11.933 69.258
4 .716 10.235 79.494
5 .572 8.165 87.659
6 .533 7.615 95.274
7 .331 4.726 100.000

As can be seen in the Rotated Component Matrix table, In component 1

the factors Quantity of options, Budget fit and Size availability have
significance values above .60, In component 2 the factors Ease of location
and Loyalty plans have significance values above .60.
 Rotated Component Matrix
Component
Variables
1 2
QUANTITY OF OPTIONS .805 .083
BUDGET FIT .844 .029
SIZE AVAILABILITY .645 .356
IN STORE OFFERS .474 .374
EASE OF LOCATION .269 .710
LOYALTY PLANS -.091 .854
SHOPPING TIME .375 .532

The Component Plot also shows that variables Y6, Y5 and Y7 (which
correspond to Quantity of options, budget fit, size availability) , are grouped in one
component whereas Y1, Y2, Y3 (which correspond to Store Location and Loyalty
Plans) are grouped in another. Y4 which corresponds to In Store Offers is
on the margin between the two components which is again confirmed
looking at the significant values under Rotated Component Matrix which
are .474 and .374. Therefore we drop the In Store Offers variable.
Few researchers state that Scree plot is more reliable to show accurate
results as compared to Total Variance Explained. The Scree plot shows
that component 1 and 2 have value more than 1.0.

Looking at the variables that fall under the two components the ones in
component 1 can be grouped under “Product specific factors” whereas
those in component 2 can be grouped under “Store specific factors”.

Conclusion
Majority of the target population have shown preference to Multi-Brand
Outlets over Single Brand Outlets.

The variables Quantity of Options, Budget Fit, Size Availability, Store

Location and Loyalty Plans are the significant variables that influence
consumer preference between single and multi-brand outlets.

In Store Offers and Shopping Time are not significant variables and thus
they do not influence the behaviour under study.

Looking at the variables that have significant influence on the behaviour

under study, Quantity of Options, Budget Fit and Size Availability can be
grouped under “Product specific factors” whereas Store Location and
Loyalty Plans can be grouped under “Store specific factors”.

Limitations
The cumulative variance obtained is slightly below the required
minimum of 60%.

Due to the use of non-probability sampling, weaker test has been

employed to conduct the research.

Managerial Implications