APPLIED RESEARCH

NATIONAL INSTITUTE OF FASHION TECHNOLOGY

JODHPUR
 TOPIC
Shift in Consumers Shopping Preference From
Retail Store to Shopping Malls

SUBMITTED TO: SUBMITTED BY:

anmol kumari
Dr. sheetal soni yamini katekar
sonam shilpi
INTRODCTION

In India, modern organized retail formats is evolving during times. The buying behavior and the perceptions of
the traditional customers who are shifting their buying patronage and loyalty from traditional unorganized
retailing store to organized shopping malls.
Ten to twelve years ago, if a consumer wanted to buy shop they were only limited to local retail stores where
they had limited options, limited variety, and charged unequal price. But in shopping mall there are vast
varieties where customers get options to look into. It is said that consumers are the major and the ultimate
beneficiaries of organized shopping malls. They now have a choice of wide range of products, quality and
prices. Organized retailers like malls are initiating various measures such as tracking of consumer behavior,
consumer loyalty programmers, and personalized customer services, etc., According to Gershman (1998) mall
are those retail outlets that facilitate attractive shopping and good entertainment places that makes the
customers to avail the global brands at a single location having features of wide variety of quality goods and
services available at convenient place with good, attractive facility.
In the ten to fifteen years malls has been increased to 85% from 55% in metropolitan cities later than that of
small cites
In today’s shopping trends lot of shopping malls has been raised which leads to improvement of infrastructure
and technological development of our Indian economy in tier -I, tier -II cities of our country.
Consumers:

Consumer preference:
Consumer preference explains how a consumer ranks a collection of goods or services or prefers one collection over another. This definition
assumes that consumer rank goods or services by the amount of satisfaction, or utility, afforded. Consumer preference theory does not take the
consumers income good or services price, or services price or the consumer’s ability to purchase the product or services.

Consumer buying behavior:

It is the sum total of a consumer's attitudes, preferences, intentions, and decisions regarding the consumer's behavior in the marketplace when
purchasing a product or service. The study of consumer behavior draws upon social science disciplines of anthropology, psychology, sociology,
and economics.
Model of consumer behavior:

1. Problem recognition - The first step is problem recognition. During this step, the consumer realizes that she has an unfulfilled need or
want.

2. Information search - The next step is to gather information relevant to what you need to solve the problem.

3. Evaluation - After information is gathered, it is evaluated against a consumer's needs, wants, preferences, and financial resources
available for purchase.

4. Purchase - At this stage, the consumer will make a purchasing decision. The ultimate decision may be based on factors such as price or
availability.

5. Post-purchase evaluation - At this stage, the consumer will decide whether the purchase actually satisfies her needs and wants. Is our
car purchaser happy with her purchase? If she is not satisfied, why isn't she?
RETAIL STORE

A place of business usually owned and operated by a retailer but sometimes owned and operated by a
manufacturer or by someone other than a retailer in which merchandise is sold primarily to ultimate
consumers

What is Retail?
In today’s competitive environment, retaining customer is a difficult task. Customer should get the
product at their doorstep, due to which many intermediaries went on adding to the distribution channel.
Distribution becomes narrower with the innovation of the word “Retail”. Retail is defined as any
business that directs its marketing efforts towards satisfying the final consumers, based up on the
organization of selling goods and services as a means of distribution.
The word ‘retail’ is derived from the French word retailer, meaning ‘to cu a piece off’ or ‘to break bulk’.
According to Philip Kotler- “Retailing includes all the activities involved in selling goods or services
to the final customers for personal, non- business use.”
Shopping Malls
A shopping mall is a huge building or group of buildings that contain various stores and other
business establishments (or) solely sells various products / brands in retailing mode. If it is a
collection of multiple stores, they are connected by walkways so that consumers can easily walk
and shop between the stores. Malls can be built in an enclosed or in an open-air format. However,
in India most of the leading shopping malls are with a primary motto of acting like „One Stop
Shop’ that provides all most all the required products and brands right from grocery, lifestyle
products to durables like furniture under one roof. Customers will be obviously happy if they get
what they want conveniently in one location.
RETAIL INDUSTRY AN OVERVIEW

Retailing is not only an important aspect of the economic structure but very much a part of our lives. Although
trading of goods has been in existence since the olden days, it is only in the recent past that the buying and selling
of goods have become more of a formal and a brand dominated activity. In fact, today retailing is evolving into a
global, hi-tech business. Nevertheless, the traditional forms of independently owned small businesses co-exist
along with the organized retailers like departmental stores, specialty stores, shopping complexes, malls, large
scale multiple chains, etc. Organized retailing has emerged in a big way since 2000 onwards and with it; we are
witnessing the emergence of new forms of retailing. The retailers’ market can be segmented on the basis of
various retail formats to concentrate or focus on the needs of particular consumer groups. Ultimately, this has led
to the development of a very complex retail environment. With the increase in competition in the retailing market,
retailers are seeking new consumer groups and new ways to tap this market. Some of the important reasons for the
growth in the consumer demand for retail outlets could be that there is a growing middle class of consumers with
high disposable income, rise in consumer aspiration level for global lifestyle due to media exposure, etc.
Evolution of the Indian Retail Sector

The origins of retailing in India can be traced back to the emergence of Kirana stores and mom-and-pop stores. These
stores used to cater to the local people. Eventually the government supported the rural retail and many indigenous
franchise stores came up with the help of Khadi & Village Industries Commission. The economy began to open up in
the 1980s

Resulting in the change of retailing, the first few companies to come up with retail chains were in textile sector, for
example, Bombay Dyeing, S Kumar's, Raymond’s, etc. Later Titan launched retail showrooms in the organized retail
sector. With the passage of time new entrants moved on from manufacturing to pure retailing. Retail outlets such as
Foodworld in FMCG, Planet M and Music world in Music, Crossword in books entered the market before 1995.
Shopping malls emerged in the urban areas giving a world-class experience to the customers. Eventually
hypermarkets and supermarkets emerged. The evolution of the sector includes the continuous improvement in the
supply chain management, distribution channels, technology, back-end operations, etc. this would finally lead to more
of consolidation, mergers and acquisitions and huge investments.
Retailing In India -Current Scenario & Future Prospects
Retailing is one of the pillars of the Indian economy and one of India’s largest industries, accounting for over 10 percent of
the country’s GDP and around 8 percent of employment. Retailing is the most active and attractive sector of last decade and
it has been present since ages in our country. In the recent past it has witnessed so much dynamism. The emergence of
retailing in India has more to do with the increased purchasing power of buyers, especially since post liberalization, there
have been increase in product variety and increase in economies of scale with the aid of modern supply and distribution
solution. Indian retailing is at an interesting crossroad. The retail sales are at the highest point in the history and new
technologies are improving retail productivity. Retail sector is one of India's fastest growing sectors with a 5 per cent
compounded annual growth rate. India's huge middle class base and its untapped retail industry are key attractions for global
retail giants planning to enter newer markets driven by changing lifestyles, strong income growth and favorable
demographic pattern. It has emerged as one of the most dynamic and fast paced industries with several players entering the
market. The Indian retail industry is valued at about $300 billion. The retail industry is an ever growing and changing sector
that caters to the dynamic needs to the consumers by providing merchandise at outlets from where they can be purchased by
the latter.
In today’s dynamic and shaky business world, the retail industry is constantly upgrading itself. With an endless
array of customer choices, fierce competitors, pervasive use of the internet, and a complex global economy,
retailers need to focus on finding ways to sustain and grow their businesses. Traditional growth models that
focused on rolling out more stores and adding more product lines, no longer enjoy the return on investment they
once did. Successful retailers are those who are able to adapt and change to the environment and develop new
ways of serving customers, respecting the dynamics of current trends and adapting accordingly. The major reason
behind the low participation in the Indian retail sector is the need for lumpy investments that cannot match up their
break even points. The government policies are being revised from time to time to attract investments in this
sector. An increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas,
rising incomes, and a steep rise in rural consumption. Shopping in India has witnessed a revolution with the
change in the consumer buying behavior and the whole format of shopping also altering. Industry of retail in India
which has become modern can be seen from the fact that there are multi- stored malls, huge shopping centers, and
sprawling complexes which offer food, shopping, and entertainment all under the same roof. India retail industry is
expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers
preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. The
branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food.
Since at present 60% of the Indian grocery basket consists of non- branded items. India retail industry is
progressing well and for this to continue retailers as well as the Indian government will have to make a combined
effort.
Shopping Malls – Modern Retail Formats
Malls are the largest form of organized retailing today. They are located mainly in metro cities, in proximity
to urban outskirts. But now a day’s across India Malls are developing. Generally ranges from 60,000 sq ft to
7, 00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service
and entertainment, all under a common roof. Examples include Shoppers Stop, Westside, and Pantaloon. The
new shopping malls that have been expanding their footprint across Indian cities are well designed, built on
international formats of retailing and integrated with entertainment and restaurants to provide a complete
family experience.
Emergence of the shopping malls. The malls have become a sensation in terms of changing lifestyle of
Indians- the way they are shopping and socializing Consumers wanted a better shopping experience and this
demand gave rise to the emergence of shopping malls in India. In this age of mass production and mass
consumption, the concept of shopping malls is the most modern method of attracting consumers. Shopping is
no longer limited to a mere buying activity; it has become synonymous with splurging time and money.
Shopping malls cater to the demands of consumers by offering them- comfort, entertainment under one roof
and food.
The inclusion of all these facilities, make shopping malls popular all over world and especially so in
India.
Just a few years back, people had to make a choice among shopping, movies or hanging out on a
holiday but thanks to our malls, all these jobs can be performed at the same time, under the same roof
and that too with a wonderful experience. It is basically the experience and not the intention that
counts when it comes to malls. All shopping malls have some or all of these features: food court,
movie theaters, customer service/information desk, security, stroller rental, "anchor stores" (big
department stores like Sears, Macys or Bloomingdales in the US, Shoppers Stop, Lifestyle or
Pantaloons in India), play areas, recreation areas, kiosks, vending machines and ATMs. Often, inside
the Mall, it is impossible to tell which country you are in.
Problems Faced By Shopping Malls As Modern Retail Formats

 Inflation decreases the purchasing power of money, which will reduce the
spending of consumers at malls.
 Consumer’s personal choice for one particular mall can be a threat for others.
 Lack of differentiation among the malls that are coming with every possible
trait.
 Lack of stock availability in stores can turn out to have negative perception in
mind of consumers.
 New entry of other players may also emerge in the near future.
OBJECTIVE OF THE STUDY
1. To determine the current shifts in consumer buying patterns from
traditional retail stores to shopping malls
2. Study the perceptions of the customers of shopping malls.
LITERATURE REVIEW

There is a need to understand shopping as a fundamental feature of modern society, says Dennis (2005).

Most of the studies suggest that the ultimate benefit of boom in the organized sector is reaped by the consumers.

The analysis of the study conducted by Kalirajan Kaliappa & Singh Kanhaiya, (2009) shows that consumers
gain in terms of low pricing when they shop with corporate retailers. The study further reveals that from the
consumers’ perspective, expansion of organized retailing is preferred as different malls and corporate retailers
compete with each other and stabilize prices. These results support the surprise findings of ICRIER1 (2008)
study, which reveals that low-income consumers save more than others through shopping at organized retail
outlets, which is a result of targeted discount shopping. According to Vijaya et al., (2008) one of the winners in
the unionization of the organized retailing are the consumers.

The relationship between store attributes and retail format choice is also examined in the literature. Previous
studies have shown that pricing, product assortment, and customer services are important factors in determining
choice of format in the department store context (Arnold, 1997; Sparks, 1995). In addition, store environment
and atmosphere appear to be influential in consumers’ format decisions (Baker et al., 1994;
Fox et al., (2004) identified frequency of store promotion efforts and product assortment related factors to be highly
influential on format choice in the grocery sector. Interestingly, price was shown to be less influential. Generic factors
such as location, ambience, reputation, customer service and the like, which meet the general shopping orientations such
as the enjoyment that they seek or the convenience, which they look for while shopping are some of the guiding
considerations to shop at malls (Levin et al., 2003).

Shekar et al., (2016) studied the overall customer satisfaction, response of customers with regard to the availability and
quality of products and services offered at shopping malls and the comfort level of the respondents towards shopping in
the shopping malls. Sharma (2012) research carried in Mumbai also assessed the overall customer satisfaction. The
researcher analyzed the response of customers with regard to the availability and quality of products and services
offered at shopping malls and the comfort level of the respondents towards shopping in the shopping malls. On the other
hand, research study carried out by Yaaminidevi (2013) in Madurai city, Tamilnadu with a sample of 100 respondents
focused on Facility Management like ambience, infrastructure and traffic were analyzed particularly. She suggested that
malls not only cater to the product needs of the customers, but also a source of entertainment, recreation. Khare (2010)
on a different note researched the mall shopping behavior of Indian small town consumers. She focused on how these
malls bring functional and experiential benefits and affect the shopping behavior among small town people, though they
are unfamiliar with the concept of malls. The findings show that men and women differ in their perception towards
malls on the issue of social interaction and the role of cultural restriction is clearly visible here.
Etailing group (2012) conducted research on consumer shopping patterns among retailers in India. They find
out that product quality, returning policy, easy check outs, less crowds at store shopping, availability of
specialty range of products, lees transportation will play a critical role in stimulating consumer shopping
patterns across the various retail outlets in India.

Anialis panda v conducted study on a case study titled “consumer patronage on retail “. They states that the
factors that easy shopping, less travel time, easy returns policy and exchange will stimulate buying patterns
among customers across the various retail stores.

Azaz mohamad (2015) investigated study titled “ consumer shopping behavior across shopping malls “ and
finds that range of brands available at store, news products availability, sales promotional strategies offered
by retailers, penetration pricing will play an important role in consumer buying behavior.
Iswar Kumar (2010) done research on consumer shopping patterns in emerging retail markets
and suggests that store arrangement, store atmosphere, cost effective measures like low
pricing, trail rooms sales promotional offers will play a vital role in consumer shopping
patterns. Student 4 (2011) of Pondicherry university conducted research on consumer buying
behavior and finds that peoples culture, shopping environment, social and personal factors will
play vital role in shopping behavior of customers.