Consumer Behavior Towards Organized Retailing in India

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INTRODUCTION
The Retail marketing through Organized retail stores, which is coming up in a big way in
India was decided to be studied in detail. Hence, focusing on two aspects of retail marketing
i.e. Store Retailing and Non-store Retailing. Store retailing as the departmental store, which
is a store or multi brand outlet, offering an array of products in various categories under one
roof, trying to cater to not one or two but many segments of the society and Non-store
Retailing as the direct selling, direct marketing.
Retail is India's largest Industry, the contribution of retail in 10 % of the country's GDP and
around 8% of employment opprtunities. This makes Retail the second largest employer
after agriculture sector. The Indian Retail industry in valued at about USD 20 billion and is
expected to grow to USD 27 billion by 2010 and USD 67 billion by 2015. Organized retailing,
which now accounts for four percent of all retailing, is predicted to extend to 10% by the
year 2010.
Modern retail has entered India in the form of sprawling shopping centers, multi-stored
malls and huge complexes offering shopping, entertainment and food all under one roof.
The services, ambience and product offering of shoppers' stop and lifestyle have increased
the expectations of customers. Similarly, Giant, Subhiksha and Big Bazaar have reinvented
the low price option, which customers are used to having. In India the scenario is quiet
unique, organized retailing accounts for a more 5% of the total retail sector. Although there
are around 5 million retail stores in India, 90% of these have a floor space area of 500 sq. ft.
or less. The emergence of organized retailing in India is a recent phenomenon and is
concentrated in the top 100 urban towns and cities.
Future of multi-brand Organized Retailing:
The Emergence of organized retailing has been due to the demographic and psychographic
changes taking place in the life of urban consumers. Growing number of nuclear families,
working women, greater work pressure, changing values and lifestyles, increased
commuting time, influence of western way of life etc.

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"India is a big country where preferences change with every 25 kms and customer loyalty
with every 5 rupees. Hence retails outfits needs technology and systems which can manage
and interpret these dynamics, and thereby help the management to take real time
decisions" said one of the pioneers of organised retailing in India, Mr. Kishore Biyani of
Pantaloons.
CTC PLAZA is the pioneer and undisputed leader in the Indian Retail scenario with a share of 54% in
the organized retail sector. Thus, a study of customer behavior in reference to malls is very
important for true Indian value system in its business strategies and functioning so as to get more
connected to Indian consumers and to maintain a happy relationship with them.
challenges and outlook for the retail industry are:
 Consumer behavior and the changing face of Indian consumerism
 New formats and strategic issues such as supply chain, people and security
 Key success factors for entering and setting up a profitable retail business in India
 Infrastructure in terms of quality and availability of real estate and mall space and
logistics
 The business case for India and some of the key challenges the industry is likely to
face.
Most organized retailing and retail property activity is still overwhelmingly concentrated in
India’s two largest metros – Delhi/NCR (National Capital Region) and Mumbai. Whilst the
report concludes that there are considerable property opportunities in these two vast cities,
increasing competition combined with the growing opportunities in India’s regional markets
is encouraging both retailers and property developers to move into new and potentially more
rewarding markets further a field. Organized retailing in India’s other main cities, such as
Bangalore, Kolkata, Hyderabad, Pune and Chennai is growing rapidly, but such is the pace of
change, that many smaller third tier cities are now firmly on the radar screen of the retail
sector and mall developers. With around 50 cities of over one million populations, many of
which are still largely untapped, there are clearly substantial opportunities for the retail

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property sector. Domestic retailers and shopping mall developers are moving aggressively
into India’s smaller cities in order to gain first mover advantage, to capture growing consumer
markets and to respond to the strong demand for branded goods. There is clearly a significant
requirement from both the retail sector and the property industry to know where India’s next
growth opportunities are likely to be concentrated
In 2006-2007, more Indians discovered the value of shopping mall in NCR. And with the
launch of each store, we discovered more value in terms of operational efficiency. CTC
launched 27 new stores in 22 cities, covering over 1.40 million square feet. As of June 2007,
there were 5 malls stores across 43 cities. While Big Bazaar continued to expand in the large
cities, it also tapped consumption potential in smaller cities like Agra, Allahabad,
Coimbatore, Surat, Panipat, Palakkad, Kanpur and Kolhapur. The year under review also
witnessed realigning of business teams with shared experience in category management,
sourcing, front-end operations and business planning.
In addition, separate teams have been formed to look into all aspects of new store launches
and to manage mature stores. This provides more flexibility and focus in expansion plans.
The increase in SKUs in existing categories and the introduction of new categories
encouraged the opening of larger stores or Super Centers, measuring 100,000 square feet or
more. Considering this scale of expansion, technology plays a significant facilitating role. The
introduction of SAP in 2005-06 and its roll out during the year, positively impacted the
business.Malls has initiated the process of Auto Replenishments Systems, thus improving
operational efficiencies and productivity. The company has also rationalized nearly 250
vendors through better vendor management in terms of potential to expand, and for inclusion
and upgradation to the online B2B platform. The company plans to open over 60 stores across
India in FY 2008, and the opening of the 100th Big Bazaar store will mark the fastest ever
expansion by a hypermarket format.CTC PLAZA is a chain of hypermarket in India.
Currently there are 210 stores across 80 cities and towns in India. Big Bazaar is designed as
an agglomeration of bazaars or Indian markets with clusters offering a wide range of
merchandise including fashion and apparels, food products, general merchandise, furniture,
electronics, books, fast food and leisure and entertainment sections. Big Bazaar is part
of Future Group, which also owns the Central Hypermarket, and is owned through a wholly

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owned subsidiary of Pantaloon Retail India Limited(BSE: 523574 523574), that is listed on
Indian stock exchange
AMBIANCE MALL
“Future is thinking beyond horizon” & in order to keep its pace with the modern retail,
AMBIANCE MALL is spreading its wings. Instead of resting on its laurels the Group are
busy identifying new avenues of growth by venturing in other formats like cash & carry,
convenios as well as specialty stores and inspiring local retailers to grow along with the big
names. The group has tied up with HPCL to open corner stores at their petrol pumps and in
addition to the above mall has come up with an institute to train manpower for the service
industry. As of December 1, 2010, it operates 172 retail stores, including two stores which are
operated by their franchisees. These 172 stores are spread over about 24,00,000square feet
and are located in24 states across India. In its efforts to strengthen thier supply chain, it has
set up seven regional distributions centres and an apparel manufacturing plant.Today Vishal
Retail Limited, Flagship Company of malls , engaged in Hyper Marketstores with an average
area of 25,000 to 30,000 sq. ft.According to Mr. Ram Chandra Agarwal, CMD, Vishal Retail
Limited, the group owes its originto a small 50 sq ft shop in Kolkata's Lal Bazaar that started
selling readymade garments. In tunewith the pulse of the market, he envisioned a mega store
that would sell garments at prices none other could match. . Organized retailing provides an
ideal shopping experience through consumer preference analysis, excellent ambience and
choice of merchandise. Changing lifestyles, strong income growth and favorable
demographics are the drivers for the fast growth of this sector.
Rising income level, education, acceptance of smart and credit cards and global exposure
have an impact on the Indian consumer’s shopping habits. Impact of factors like availability
of favourite brands, social status, buying behavior during discounts, influence of family and
friends over the store and brand choice, relationship between store and store brand, and
consumer perception towards store and national brands while shopping from a store, have not
yet been gauged much by marketers. Thus, this study is an Endeavour to understand and
study consumer shopping behavior towards organized retailer, so as to have a better insight
of consumers buying behavior .

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“Future is thinking beyond horizon” & in order to keep its pace with the modern
retail, Vishal Retail Limited is spreading its wings. Instead of resting on
its laurels the Group are busy identifying new avenues of growth by venturing in
other formats like cash & carry, convenios as well as specialty stores and inspiring local
retailers to grow along with the big names. The group has tied up with HPCL to open
corner stores at their petrol pumps and in addition to the above Vishal has come up
with an institute to train manpower for the service industry. As of December 1, 2010, it
operates 172 retail stores, including two stores which are operated by their franchisees. These
172 stores are spread over about 24,00,000square feet and are located in24 states across India.
In its efforts to strengthen their supply chain, it has set up seven regional distributions centers
and an apparel manufacturing plant. Today Vishal Retail Limited, Flagship Company
of Vishal Group, engaged in Hyper Market stores with an average area of 25,000 to
30,000 sq. ft.According to Mr. Ram Chandra Agarwal, CMD, Vishal Retail Limited, the
group owes its origin to a small 50 sq ft shop in Kolkata's Lal Bazaar that started selling
readymade garments. In tune with the pulse of the market, he envisioned a mega store that
would sell garments at prices none other could match. .
Organized retailing provides an ideal shopping experience through consumer preference
analysis, excellent ambience and choice of merchandise. Changing lifestyles, strong income
growth and favorable demographics are the drivers for the fast growth of this sector. Rising
income level, education, acceptance of smart and credit cards and global exposure have an
impact on the Indian consumer’s shopping habits. Impact of factors like availability of
favourite brands, social status, buying behaviour during discounts, influence of family and
friends over the store and brand choice, relationship between store and store brand, and
consumer perception towards store and national brands while shopping from a store, have not
yet been gauged much by marketers. Thus, this study is an endeavour to understand and study
consumer shopping behaviour towards organized retailer, so as to have a better insight of
consumers buying behaviour.

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Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a
department store, boutique or kiosk, or by mall, in small or individual lots for direct
consumption by the purchaser.[1] Retailing may include subordinated services, such as
delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods
or products in large quantities from manufacturers or directly or through a wholesaler, and
then sells smaller quantities to the end-user. Retail establishments are often called shops or
stores. Retailers are at the end of the supply chain. Manufacturing marketers see the process
of retailing as a necessary part of their overall distribution strategy. The term "retailer" is also
applied where a service provider services the needs of a large number of individuals, such as
a public utility, like electric power.
Shops may be on residential streets, shopping streets with few or no houses or in a shopping
mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial
or full roof to protect customers from precipitation. Online retailing, a type of electronic
commerce used for business-to-consumer (B2C) transactions and mail order, are forms of
non-shop retailing.
Shopping generally refers to the act of buying products. Sometimes this is done to obtain
necessities such as food and clothing; sometimes it is done as a recreational activity.
Recreational shopping often involves window shopping (just looking, not buying) and
browsing and does not always result in a purchase.

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RETAIL IN INDIA
Retailing in India is one of the pillars of its economy and accounts for 14 to 15
percent of its GDP. The Indian retail market is estimated to beUS$ 450 billion and
one of the top five retail markets in the world by economic value. India is one of the
fastest growing retail market in the world, with 1.2 billion people.
India's retailing industry is essentially owner manned small shops. In 2010, larger
format convenience stores and supermarkets accounted for about 4 percent of the
industry, and these were present only in large urban centers. India's retail and
logistics industry employs about 40 million Indians (3.3% of Indian population).
Until 2011, Indian central government denied foreign direct investment (FDI) in multi-
brand retail, forbidding foreign groups from any ownership in supermarkets,
convenience stores or any retail outlets. Even single-brand retail was limited to 51%
ownership and a bureaucratic process.
In November 2011, India's central government announced retail reforms for both
multi-brand stores and single-brand stores. These market reforms paved the way for
retail innovation and competition with multi-brand retailers such
as Walmart, Carrefour and Tesco, as well single brand majors such asIKEA, Nike,
and Apple. The announcement sparked intense activism, both in opposition and in
support of the reforms. In December 2011, under pressure from the opposition,
Indian government placed the retail reforms on hold till it reaches a consensus.
In January 2012, India approved reforms for single-brand stores welcoming anyone
in the world to innovate in Indian retail market with 100% ownership, but imposed the
requirement that the single brand retailer source 30 percent of its goods from India.
Indian government continues the hold on retail reforms for multi-brand stores.
In June 2012, IKEA announced it has applied for permission to invest $1.9 billion in
India and set up 25 retail stores. Fitch believes that the 30 percent requirement is
likely to significantly delay if not prevent most single brand majors from Europe, USA
and Japan from opening stores and creating associated jobs in India.
On 14 September 2012, the government of India announced the opening of FDI in
multi-brand retail, subject to approvals by individual states. This decision has been

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welcomed by economists and the markets, however has caused protests and an
upheaval in India's central government's political coalition structure. On 20
September 2012, the Government of India formally notified the FDI reforms for single
and multi brand retail, thereby making it effective under Indian law.
On 7 December 2012, the Federal Government of India allowed 51% FDI in multi-
brand retail in India. The Feds managed to get the approval of multi-brand retail in
the parliament despite heavy uproar from the opposition. Some states will allow
foreign supermarkets like Walmart, Tesco and Carrefour to open while other states
will not.
Local terms
Organized retailing, in India, refers to trading activities undertaken by licensed
retailers, that is, those who are registered for sales tax, income tax, etc. These
include the publicly traded supermarkets, corporate-backed hypermarkets and retail
chains, and also the privately owned large retail businesses.
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost
retailing, for example, the local corner shops, owner manned general
stores, paan/beedi shops, convenience stores, hand cart and pavement vendors,
etc.[15]
Organized retailing was absent in most rural and small towns of India in 2010.
Supermarkets and similar organized retail accounted for just 4% of the market.[5]
Most Indian shopping takes place in open markets or millions of small, independent
grocery and retail shops. Shoppers typically stand outside the retail shop, ask for
what they want, and can not pick or examine a product from the shelf. Access to the
shelf or product storage area is limited. Once the shopper requests the food staple or
household product they are looking for, the shopkeeper goes to the container or shelf
or to the back of the store, brings it out and offers it for sale to the shopper. Often the
shopkeeper may substitute the product, claiming that it is similar or equivalent to the
product the consumer is asking for. The product typically has no price label in these
small retail shops; although some products do have a manufactured suggested retail
price (MSRP) pre-printed on the packaging. The shopkeeper prices the food staple

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and household products arbitrarily, and two consumers may pay different prices for
the same product on the same day. Price is sometimes negotiated between the
shopper and shopkeeper. The shoppers do not have time to examine the product
label, and do not have a choice to make an informed decision between competitive
products.
India's retail and logistics industry, organized and unorganized in combination,
employs about 40 million Indians (3.3% of Indian population). The typical Indian retail
shops are very small. Over 14 million outlets operate in the country and only 4% of
them being larger than 500 sq ft (46 m2
) in size. India has about 11 shop outlets for
every 1000 people. Vast majority of the unorganized retail shops in India employ
family members, do not have the scale to procure or transport products at high
volume wholesale level, have limited to no quality control or fake-versus-authentic
product screening technology and have no training on safe and hygienic storage,
packaging or logistics. The unorganized retail shops source their products from a
chain of middlemen who mark up the product as it moves from farmer or producer to
the consumer. The unorganized retail shops typically offer no after-sales support or
service. Finally, most transactions at unorganized retail shops are done with cash,
with all sales being final.
Until the 1990s, regulations prevented innovation and entrepreneurship in Indian
retailing. Some retails faced complying with over thirty regulations such as
"signboard licenses" and "anti-hoarding measures" before they could open doors.
There are taxes for moving goods to states, from states, and even within states in
some cases. Farmers and producers had to go through middlemen monopolies. The
logistics and infrastructure was very poor, with losses exceeding 30 percent.
Through the 1990s, India introduced widespread free market reforms, including
some related to retail. Between 2000 to 2010, consumers in select Indian cities have
gradually begun to experience the quality, choice, convenience and benefits of
organized retail industry.

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Growth over 1997-2010
India in 1997 allowed foreign direct investment (FDI) in cash and carry wholesale.
Then, it required government approval. The approval requirement was relaxed, and
automatic permission was granted in 2006. Between 2000 to 2010, Indian retail
attracted about $1.8 billion in foreign direct investment, representing a very small
1.5% of total investment flow into India.
Single brand retailing attracted 94 proposals between 2006 and 2010, of which 57
were approved and implemented. For a country of 1.2 billion people, this is a very
small number. Some claim one of the primary restraint inhibiting better participation
was that India required single brand retailers to limit their ownership in Indian outlets
to 51%. China in contrast allows 100% ownership by foreign companies in both
single brand and multi-brand retail presence.
Indian retail has experienced limited growth, and its spoilage of food harvest is
amongst the highest in the world, because of very limited integrated cold-chain and
other infrastructure. India has only 5386 stand-alone cold storages, having a total
capacity of 23.6 million metric tons. However, 80 percent of this storage is used only
for potatoes. The remaining infrastructure capacity is less than 1% of the annual farm
output of India, and grossly inadequate during peak harvest seasons. This leads to
about 30% losses in certain perishable agricultural output in India, on average, every
year.
Indian laws already allow foreign direct investment in cold-chain infrastructure to the
extent of 100 percent. There has been no interest in foreign direct investment in cold
storage infrastructure build out. Experts claim that cold storage infrastructure will
become economically viable only when there is strong and contractually binding
demand from organized retail. The risk of cold storing perishable food, without an
assured way to move and sell it, puts the economic viability of expensive cold
storage in doubt. In the absence of organized retail competition and with a ban on
foreign direct investment in multi-brand retailers, foreign direct investments are
unlikely to begin in cold storage and farm logistics infrastructure.
Until 2010, intermediaries and middlemen in India have dominated the value chain.
Due to a number of intermediaries involved in the traditional Indian retail chain,
norms are flouted and pricing lacks transparency. Small Indian farmers realize only

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1/3rd of the total price paid by the final Indian consumer, as against 2/3rd by farmers
in nations with a higher share of organized retail. The 60%+ margins for middlemen
and traditional retail shops have limited growth and prevented innovation in Indian
retail industry.
India has had years of debate and discussions on the risks and prudence of allowing
innovation and competition within its retail industry. Numerous economists
repeatedly recommended to the Government of India that legal restrictions on
organized retail must be removed, and the retail industry in India must be opened to
competition. For example, in an invited address to the Indian parliament in December
2010, Jagdish Bhagwati, Professor of Economics and Law at the Columbia
University analyzed the relationship between growth and poverty reduction, then
urged the Indian parliament to extend economic reforms by freeing up of the retail
sector, further liberalization of trade in all sectors, and introducing labor market
reforms. Such reforms Professor Bhagwati argued will accelerate economic growth
and make a sustainable difference in the life of India's poorest.
A 2007 report noted that an increasing number of people in India are turning to the
services sector for employment due to the relative low compensation offered by the
traditional agriculture and manufacturing sectors. The organized retail market is
growing at 35 percent annually while growth of unorganized retail sector is pegged at
6 percent.
The Retail Business in India is currently at the point of inflection. As of 2008, rapid
change with investments to the tune of US $ 25 billion were being planned by several
Indian and multinational companies in the next 5 years. It is a huge industry in terms
of size and according to India Brand Equity Foundation (IBEF), it is valued at about
US$ 395.96 billion. Organised retail is expected to garner about 16-18 percent of the
total retail market (US $ 65-75 billion) in the next 5 years.
India has topped the A.T. Kearney’s annual Global Retail Development Index (GRDI)
for the third consecutive year, maintaining its position as the most attractive market
for retail investment. The Indian economy has registered a growth of 8% for 2007.
The predictions for 2008 is 7.9%. The enormous growth of the retail industry has
created a huge demand for real estate. Property developers are creating retail real

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estate at an aggressive pace and by 2010, 300 malls are estimated to be operational
in the country.
Growth after 2011
Before 2011, India had prevented innovation and organized competition in its
consumer retail industry. Several studies claim that the lack of infrastructure and
competitive retail industry is a key cause of India's persistently high inflation.
Furthermore, because of unorganized retail, in a nation where malnutrition remains a
serious problem, food waste is rife. Well over 30% of food staples and perishable
goods produced in India spoils because poor infrastructure and small retail outlets
prevent hygienic storage and movement of the goods from the farmer to the
consumer.
One report estimates the 2011 Indian retail market as generating sales of about $470
billion a year, of which a minuscule $27 billion comes from organized retail such as
supermarkets, chain stores with centralized operations and shops in malls. The
opening of retail industry to free market competition, some claim will enable rapid
growth in retail sector of Indian economy. Others believe the growth of Indian retail
industry will take time, with organized retail possibly needing a decade to grow to a
25% share. A 25% market share, given the expected growth of Indian retail industry
through 2021, is estimated to be over $250 billion a year: a revenue equal to the
2009 revenue share from Japan for the world's 250 largest retailers.
The Economist forecasts that Indian retail will nearly double in economic value,
expanding by about $400 billion by 2020. The projected increase alone is equivalent
to the current retail market size of France.
In 2011, food accounted for 70% of Indian retail, but was under-represented by
organized retail. A.T. Kearney estimates India's organized retail had a 31% share in
clothing and apparel, while the home supplies retail was growing between 20% to
30% per year. These data correspond to retail prospects prior to November
announcement of the retail reform. The Indian market offers endless possibilities for
investors.

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It might be true that India has the largest number of shops per inhabitant. However
we (locatus) have detailed figures for Belgium, the Netherlands and Luxemburg. In
Belgium, the number of outlets is approximately 8 per 1,000 and in the Netherlands it
is 6. So the Indian number must be far higher.
The world's only Garmin retail location is located on the Magnificent Mile in Chicago.Retail
comes from the Old French word trailer (compare modern French retailer), which means "to
cut off, clip, pare, divide" in terms of tailoring (1365). It was first recorded as a noun with the
meaning of a "sale in small quantities" in 1433 (from the Middle French retail, "piece cut off,
shred, scrap, paring").[2] Like the French, the word retail in both Dutch and German
(detailhandel and Einzelhandel, respectively) also refers to the sale of small quantities of
items.
Indian Retail at crossroad: Organized vs. Unorganized Retail
India is currently the twelfth largest consumer market in the world. According to a study by
McKinsey Global Institute, India is likely to join the premier league of the world’s consumer
markets by 2025, improving its position to the fifth.
But this growth is not going to happen is smooth way. Any change always comes up with
some friction, and Indian retail sector is and will be witnessing the same friction. Indian retail
sector is still in its nascent form if we consider its full potential. While most of the developed
market of US and Europe and also some SE Asian emerging market economies have reaped
the benefits of modern retail, India has not yet entered into advanced phase of modern retail
forms.

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Organized vs. unorganized sector
Future of retail sector in India is swerving- on one side organized retail is marching into life
of urban consumers, while on the other our own neighborhood ‘kirana stores’ are resisting
fiercely with their existing strong foothold. India today is at the crossroads with regard to the
retail sector. A shift between organized and unorganized retail sector is evident, which has led
to a number of speculations on the fate of Indian retail sector.
Unorganized sector cannot be ignored
In any newspaper or television channel, we find hordes of news about happening in organized
retail sectors, which is indeed fairly real situation. While the role of organized retail sector in
growth of economy cannot be denied, but one thing is also of extreme importance that
unorganized retail format is a support to a large chunk of population- providing direct
employment to 39,500,000 individuals. So there is no way that government or anyone can
discount these foundation stone of Indian economy.
Changing landscape of Indian consumerism
The face of Indian consumerism is changing: not Indian consumerism is evolving from “Bajaj
Scooter family man” to “Bajaj Pulsar trendy youngster”. This changing consumer’s taste and
lifestyle, somewhere automatically give some advantage to organized sector. This makes
imperative for unorganized retail sector to restructure itself in order to withstand the
increasing competition and to meet consumer expectations by moving with trends. What they
can do and what they are doing, some of these issues will be discussed in future parts of
article.
Role of Government :
As in other countries, government policy can and should play an important role in
modernizing the unorganized sector and improve its competitiveness. But question is what
should be exact role of government. Should it go for policies for protection of traditional
retailers by restricting organized retail or encourage organized retail to reap benefits that are
generated by it? What should be mechanism to promote or protect one or other? Can
government act only as a facilitator or enablers or both?
In the said context, it is imperative to develop a strategic roadmap for unorganized retail form
to be able to survive, compete and keep the economy growing.
The Retail Sector is the largest sector in India after agriculture, accounting for over 10 per
cent of the country’s GDP and around 8 per cent of the employment. India has the most

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unorganized retail market in the world. Most retailers of the unorganized retail market have
their shop in the front and house at the back. The Retail Industry in India is today amongst the
fastest growing industries with several players entering the market. Currently, the organized
retail sector accounts for only 2 per cent indicating a huge potential market opportunity. India
is being seen as most attractive market by retail investors from all over the world. Retail is
clearly the sector that is poised to show the highest growth in the next five years. The sector is
set for a revolution, as both the present players and new entrants are gearing up to explore the
market. The present size of the organized retailing sector is approximately 3% and is expected
to grow to 25-30% by the year 2010. There are about 300 new malls, 1500 supermarkets and
325 departmental stores currently under construction. Many players are coming up with huge
investments, due to which the present 12 million mom-and-pop shops and kirana stores fear
losing their business. Most predictions say that the sector might reach to US$ 400-600 billion
by the year 2010.
Global retail giants such as Wal-Mart, Tesco, Germany's Metro AG and many others are
ready to enter the retail markets. The rising demands of branded products and increase in
purchasing power have lured these companies to enter the market. Modern retail development
in India is focused on the cities like Mumbai, Pune, Ahmedabad, Delhi and the National
Capital Region, Chennai, Banglore, Hyderabad, Kolkata. The leading Indian retailers are Bata
India Ltd, Big Bazaar, Crossword, Vishal Mega Mart., Food Bazaar, Globus Stores Pvt. Ltd.,
Liberty shoes Ltd., Music World Entertainment Ltd., Pantaloon Retail India Ltd., Shoppers
Stop, Subhiksha, Titan Industries etc.
MODERN RETAIL STRUCTURE:-
It includes-
Malls like Ansal Plaza (New Delhi), Nucleus (Pune), Centre Stage (Noida) etc
Discount Stores like Brand Factory, Loot, M&B Factory, Subhiksha, Big Apple, and
Reliance Fresh.
Department Stores like Shoppers Stop, Big Shop, and Pantaloons.
Hypermarkets/ Supermarkets like Big Bazaar, Vishal Mega Mart.

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Convenience Stores like Spencer’s Daily, Tru Mart, Choupal, More.
Multi Brand Outlets like Globus.
CURRENT SCENARIO
A glimpse of the international retail-
47 global fortune companies & 25 of Asia's top 200 companies are retailers
Dominated by developed countries
US, EU & Japan constitute 80% of world retail sales.
Biggest player in India is Pantaloon Retail India Limited.
PERCENTAGE OF ORGANIZED RETAIL:-
USA - 85%
Taiwan - 81%
Malaysia - 55%
Thailand - 40%
Brazil - 36%
Indonesia - 30%
Poland - 20%
China - 20%
India - 3%
According to A.T. Kearney GLOBAL RETAIL DEVELOPMENT INDEX, India was placed
at 1st position in the year 2005. However within 2 years of time i.e 2007, it is being placed at

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2nd
position jointly with China and after Vietnam.
GROWTH OF RETAIL SECTOR
The following are the reasons for growth of retail sector in India- Increase in disposable
income of consumers, Increase in consuming desire, Low share of organized retailing.
Purchasing power of Indian urban consumer is growing and branded merchandise in
categories like Apparels, Accessories, Food, and even Jewellery, are slowly becoming
lifestyle products. Retailers are taking benefit of this growth and accordingly are aiming to
expand. Indian retail is expanding at a fast pace. India's retail industry, which is currently
valued at nearly $350 billion, is expected to double in size by 2015. The Indian Retail
Industry is gradually moving ahead towards becoming the next boom industry.
Modern Large-Format retail, efficiently connects the producers and the consumers and is
helpful to both in the long run. In India there is a huge wastage of fresh fruits and vegetables.
In this scenario, the Large-Format Retail provides all important infrastructures to carry the
farm produce to the consumers with lesser wastage. In this way the farmers get better returns
and the consumer better quality and price.
KEY TRENDS:-
The existing players like Big Bazaar, Shoppers' Stop, Piramyd, and Vishal Mega Mart are
expanding to smaller towns and cities. Many other business houses are planning to enter the
retail sector either on their own or through partnerships. New entrants like Bharti pvt ltd and
Wal-Mart are going to enter the market soon. Even rural areas will provide a huge
opportunity to be explored

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Consumer Buying Behavior
Consumer Buying Behavior the decision processes and acts of final household consumers
associated with evaluating, buying, consuming, and discarding products for personal
consumption
Consider the purchase an automobile. You generally will not consider different options until
some event triggers a need, such as a problem needing potentially expensive repair. Once this
need has put you "on the market", you begin to ask your friends for recommendations
regarding dealerships and car models. After visiting several dealerships, you test drive several
models and finally decide on a particular model. After picking up your new car, you have
doubts on the way home, wondering if you can afford the monthly payments, but then begin
to wonder if instead you should have purchased a more expensive but potentially more
reliable model. Over the next five years, the car has several unexpected breakdowns that lead
you to want to purchase a different brand, but you have been very happy with the services of
the local dealership and decide to again purchase your next car there.
In this particular case, the following generic model of consumer decision making appears to
hold:
=====> Need recognition
=====> Information search
=====> Evaluation of alternatives
=====> Purchase decision
=====> Post purchase behavior

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Now consider the purchase of a quart of orange juice. You purchase this product when you do
your grocery shopping once per week. You have a favorite brand of orange juice and usually
do your grocery shopping at the same store. When you buy orange juice, you always go to the
same place in the store to pick it up, and never notice what other brands are on the shelf or
what are the prices of other brands. How is it that the generic model above works differently
in this second scenario? Why does it work differently? Why would we generally need the
ministrations of a sales person in the sale of a car, but we generally do not need the help of a
salesperson in the purchase of orange juice?
How can the marketer of orange juice get a consumer like you to exert more effort into
information search or to consider alternative products? How is it that the marketer of your
brand got you to ignore alternative competing brands? What is the involvement of salespeople
in sales promotions that might be associated with products such as orange juice?
Consumer behavior researchers are not so interested in studying the validity of the above
generic model, but are more interested in various factors that influence how such a model
might work.
INFLUENCES ON THE GENERIC MODEL
• external
o group
-e.g., cultural, family, reference group influences
o environmental/situational
-e.g., time of day, temperature and humidity, etc.
• internal
o lifestyle, personality, decision making process, motivation, etc.
GROUP INFLUENCES ON CONSUMER BEHAVIOR
Culture
the set of basic values, beliefs, norms, and associated behaviors that are learned by a member

68
of society Note that culture is something that is learned and that it has a relatively long
lasting effect on the behaviors of an individual. As an example of cultural influences,
consider how the salesperson in an appliance store in the U.S. must react to different couples
who are considering the purchase of a refrigerator. In some subcultures, the husband will play
a dominant role in the purchase decision; in others, the wife will play a more dominant role.
Social Class
a group of individuals with similar social rank, based on such factors as occupation,
education, and wealth
Reference Groups
groups, often temporary, that affect a person's values, attitude, or behaviors
• E.g., your behaviors around colleagues at work or friends at school are probably
different from your behaviors around your parents, no matter your age or stage in the
family life cycle. If you were a used car salesperson, how might you respond
• differently to a nineteen year old prospect accompanied by her boyfriend from one
accompanied by two girlfriends?
• opinion leader
a person within a reference group who exerts influence on others because of special
skills, knowledge, personality, etc.
o You might ask the webmaster at work for an opinion about a particular
software application. Software manufacturers often give away free beta copies
of software to potential opinion leaders with the hope that they will in turn
influence many others to purchase the product.
ENVIRONMENTAL/SITUATIONAL INFLUENCES ON CONSUMER BEHAVIOR
circumstances, time, location, etc.
Do you like grapes? Do you like peas?
You might like grapes as a snack after lunch, but probably not as a dessert after a fancy meal
in a restaurant. You might like peas, but probably not as a topping on your pancakes.

68
Everyday situations cause an interaction between various factors which influence our
behaviors. If you work for tips (a form of incentive related to commission) as a waiter or
waitress, you must certainly be aware of such interactions which can increase or decrease
your sales. If you are doing your Saturday grocery shopping and are looking for orange juice,
you are probably much more sensitive to price than if you stop at the quick store late at night,
when you are tired and cranky, after a late meeting at the office. A prospect shopping for a
new automobile while debating the wisdom of a necessary expensive repair to his car might
be more interested in what cars are on the lot than in shopping for the best deal that might
involve a special order.
INTERNAL INFLUENCES ON CONSUMER BEHAVIOR
personality
a person's distinguishing psychological characteristics that lead to relatively consistent and
lasting responses to stimuli in the environment
We are each unique as individuals, and we each respond differently as consumers. For
example, some people are "optimizers" who will keep shopping until they are certain that
they have found the best price for a particular item, while other people are "satisficers" who
will stop shopping when they believe that they have found something that is "good enough."
If you are a salesperson in a retail shoe store, how might you work differently with these two
personalities?
Lifestyle and psychographics
• lifestyle is a pattern of living expressed through a person's activities, interests, and
opinions
• psychographics is a technique for measuring personality and lifestyles to developing
lifestyle classifications
Motivation: multiple motives

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Consumers usually have multiple motives for particular behaviors. These can be a
combination of:
• manifest
known to the person and freely admitted
• latent
unknown to the person or the person is very reluctant to admit
Note: different motives can lead to the same behavior; observing behavior is not sufficient to
determine motives.
What are the thoughts of John's friend?
What is John's manifest motive?
What might be his latent motive?
How might a salesperson discover these motives? What features should a salesperson
emphasize?
Involvement
has to do with an individual's

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• intensity of interest in a product and the
• importance of the product for that person
The purchase of a car is much more risky than the purchase of a quart of orange juice, and
therefore presents a higher involvement situation. This modifies the way that the generic
model works.
As involvement increases, consumers have greater motivation to comprehend and elaborate
on information salient to the purchase. A life insurance agent, for example, would typically be
more interested in contacting a young couple who just had a baby than an eighteen year old
college student - even though the new parents might be struggling to make ends meet while
the student is living more comfortably. Although the annual investment into a policy is much
lower if started at a younger age, most young college students are not open to thinking about
long term estate planning. A young couple with a new child, however, is much more open to
thinking about issues associated with planning for the child's future education, saving to buy a
house, or even saving to take an extended vacation upon retirement.
TYPES OF CONSUMER PROBLEM-SOLVING PROCESSES
Reutilized
• used when buying frequently purchased, low cost items
• used when little search/decision effort is needed
• e.g., buying a quart of orange juice once per week
Limited problem solving
• used when products are occasionally purchased
• used when information is needed about an unfamiliar product in a familiar product
category
Extended problem solving

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• used when product is unfamiliar, expensive, or infrequently purchased
• e.g., buying a new car once every five years
•
•
•
Under what sorts of conditions the assistance of a salesperson would be needed? Not
needed?
POST-PURCHASE CONSUMER BEHAVIOR
Satisfaction
After the sale, the buyer will likely feel either satisfied or dissatisfied. If the buyer beleives
that s/he received more in the exchange than what was paid, s/he might feel satisfied. If s/he
believes that s/he received less in the exchange than what was paid, then s/he might feel
dissatisfied. Dissatisfied buyers are not likely to return as customers and are not likely to send
friends, relatives, and acquaintances. They are also more likely to be unhappy or even abusive
when the product requires post-sale servicing, as when an automobile needs warranty
maintenance.
The above idea can be modeled as Homans' basic exchange equation:
Profit = Rewards - Costs
Unfortunately, even a buyer who "got a good deal" with respect to price and other terms of
the sale might feel dissatisfied under the perception that the salesperson made out even better.
This idea is called equity theory, where we are concerned with:
Outcomes of A
Inputs of A
vs.
Outcomes of B
Inputs of B

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Consider, for example, that you have purchased a used car for $14,000 after finding that the
"e;blue book" value is listed at $16,000. You are probably delighted with the purchase until
you accidentally meet the prior owner who had received a trade-in of $10,000 on the car just
a few days before. That the dealer appears to have received substantially greater benefit than
you could lead to extreme dissatisfaction, even though you received good value for the money
spent. (Note that the selling dealer might actually have paid $12,000 for the car at a statewide
dealer's auction, and then might have incurred another $1,000 in expenses associated with
transporting the car and preparing it for sale. Management of buyer perceptions is very
important!) An issue related to this is attribution theory. According to attribution theory,
people tend to assign cause to the behavior of others. Mary's life insurance agent advises her
to purchase a whole life policy, while her accountant advises her, "buy term insurance and
invest the difference.". The reason, explains the accountant, "is that insurance agents receive
substantially higher commission payments on sales of whole life policies."
If Mary believes that the insurance agent is recommending a product merely because he
receives a higher commission, she will likely be displeased with the relationship and will not
take his recommendation. If the agent is able to show Mary that the recommended product is
the best solution for her situation, then she will likely attribute his recommendation to having
her best interests in mind and will not be concerned about how it is that he is compensated for
his services.
Cognitive dissonance
has to do with the doubt that a person has about the wisdom of a recent purchase
It is very common for people to experience some anxiety after the purchase of a product that
is very expensive or that will require a long term commitment. Jane and Fred, for example,
signed a one year lease on an apartment, committing themselves to payments of $1500 per
month. A week later, they are wondering if they should have instead leased a smaller $900
apartment in a more rough part of town; they are not sure if they really can afford this much
of a monthly obligation. Dick and Sally, on the other hand, ultimately rented the $900
apartment, and now are wondering if the savings in rent will be offset by noisy and
sometimes unsafe conditions in this neighborhood. Perhaps neither couple would be
experiencing this anxiety if their landlords had given them just the smallest of assurances that

68
they had made a good decision. After a close on products that are expensive or that require a
long term commitment, the salesperson should provide the prospect with some reasons to be
happy with the decision. Allow the car buyer to reinforce her own positive feelings by calling
her a week after the purchase to ask how things are going. Call the new life insurance policy
holder after two months to see if there are any questions; a lack of questions can only help the
buyer to convince himself that he did the right thing.
CONSUMER ATTITUDES TOWARDS FOREIGN RETAILERS’ PRODUCTS
Bircan Asuk
Turkey has attracted foreign retailers for many years because of its high population, growing
economy, growing market potential, young population and also, its high labour force.
Although conditions are attractive, foreign retailers face some problems related to different
demographic characteristics, different values, attitudes and different cultures of consumers in
Turkey and also, in the other countries. One of the most important factors that affects
consumers’ attitudes towards foreign retailers’ products and their willingness to purchase
these brands is consumer ethnocentrism (According to ethnocentrism; people evaluate their
race more superior than the other races). The aim of this research is generally to examine
Turkish consumers’ atttitudes towards foreign retailers’ products. In this respect, consumer
ethnocentrism is explored among Turkish consumers. Besides, it is explored how this
consumer ethnocentrism affect product judgement of foreign products and willingness to buy
these products. The effect of age and education on attitudes is also investigated. Data was
collected through a questionnaire. And this questionnaire was applied to 50 people in October
2009
consumer attitudes towards the American retail system. A micro-level, behavioral analysis
predicated upon this research is then proposed as a method of determining actual consumer
attitudes.
CONSUMER SHOPPING BEHAVIOR AMONG MODERN RETAIL FORMATS
The given article shows that individual determinant such as shopping intension, attitude
towards retail outlet, and shopping habit plays important role on consumer shopping decision.
Attitude towards retail outlet and shopping habit influence shopping intension. This implies,

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retailers should concentrate on strategies in building consumers’ positive attitude towards
retail, so that consumers visit their retail in order to make purchases regularly. However it
found that it is no different of this individual determinant among retail format. This imply,
consumer visit all format in making convenience goods purchase.
India for a long time a large chunk of retail outlets were grocery shop. This pattern had been
changing in recent years, in urban and rural markets. Of late, India's largely rural population
has also caught the eye of retailers looking for new areas of growth. A slew of supermarket
chains, including those of the Tata and ITC, are set to storm the rural areas of the country as
corporate realize the huge potential of the untapped market ITC launched the country's first
rural mall 'Chaupal Sagar', offering a diverse product range from FMCG to electronic
appliances to automobiles, attempting to provide farmers a one-stop destination for all of their
needs. Companies such as Godrej and DCM Shriram Consolidated are launching `one-stop
shops' for farmers and their communities. Godrej Agrovet, for instance, is planning to set up
1,000 Aadhar stores across rural India by 2010. DCM Shriram plans to set up 35 rural/semi-
urban utility marts over 2006-07. Positioned as a one-stop shop, the Hariyali Kisaan Bazaar
Chain will cater to a variety of farmers' needs by providing access to retail banking, LPG
outlets and even a motorcycle showroom.
Marketers are trying to grab this untapped market but still the reach of those players is mere
they should more focused and rural oriented. There are some points which they should
undertaken
The retailer approach should be more professional like in urban
• The retailers should try for up selling and cross selling rather to focus on the bulk
selling
• The promotion strategy should be local and easy to grab able for the target audience.
• The quarries and questions should be addressed by retailer
• The awareness about product quality should be spread between customer so they can
shift to these stores rather to traditional stores
• Stores should enhance their portfolio so that more and more customers can find their
needs.

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CONSUMER SHOPPING BEHAVIOR IN MALLS WITH LARGE SCALE
ENTERTAINMENT CENTERS.
The concept of 'entertainment' is hard to define in the context of a shopping center. It could
be viewed in a very narrow sense as consisting of just fides, games, and shows, or in a broad
sense as a combination of the entire shopping experience. The present study, however,
focuses specifically on common area entertainment centers within malls, operationally
defined as a concentrated, centralized, entertainment area of at least 30,000 square feet and
containing a variety of entertainment opportunities, including various types of rides for
children, carrousels, miniature golf courses, soft play structures, simulator rides, etc.
Although malls have traditionally offered several different types of entertainment options, it
is this category that has seen the most growth in recent years.
Most previous academic research studies have treated such entertainment centers as just one
additional characteristic of a shopping center which could be included in retail gravitational
models to predict consumer patronage of shopping centers or the market potential of a
particular location. Such gravitation models have traditionally included factors such as
distance and travel time, size of a shopping area, characteristics of the shopping center,
consumer characteristics, and the cost of shopping to consumers (Craig, Ghosh, &
McLafferty, 1984). In terms of shopping center patronage, Bellenger et al. (1977) found that
some consumers placed the greatest value on convenience and economic attributes including
convenience to home, accessibility, and the presence of services such as banks and
restaurants. Others, however emphasized recreational attributes including atmosphere,
fashionability, variety of stores and merchandise. More recent studies have supported these
results on the importance of recreational attributes including atmospherics (Donovan &
Rossiter, 1982); pleasurable shopping experiences (Dawson, Bloch, & Ridway, 1990); and
the social aspects of mall shopping (Feinberg, Sheffler, Meoli, & Rummel, 1989; Jarboe &
McDaniel, 1987).

68
However, as mentioned earlier, there has been very little academic research on mega-malls
and the effects of entertainment centers in such malls on consumer behavior. Most of the
research conducted on this relatively recent phenomenon has been done by either mall
developers in specific malls (e.g., Stiller & Smith, 1992) or by private research agencies
which provide a fee-based information service (e.g., U.L.I. Publications). These studies have
primarily focused upon defining the trading area of the mall, the consumer characteristics,
and the extent of patronage at various stores and entertainment centers. Testimonials to the
effectiveness of the entertainment centers seem to be based not so much on this research as on
the gut instinct of developers and the success of most of the mega-malls. For example, John
Denlinger, the vice president of operations for Time-Out Amusements Inc., an operator of
entertainment centers, says that such entertainment centers "are helping attract people from
farther away, encouraging them to bring the whole family to the mall, and getting them to
shop more once they are there". James Ginsberg, vice-president of Recreational Concepts
Inc., also an operator of such entertainment centers has similar views, "if malls get people
into their centers, they will stay longer. This is especially true in the case of people coming
from longer distances, who to justify the time spent getting there, are more likely to spend
more money because they are there" (Bivins 1989, p.23). None of these statements, however,
are supported by any published research findings.
The present study seeks to provide this support by investigating the effects of the
entertainment centers on the shopping behavior of consumers. In particular, the characteristics
and shopping behavior of consumers who visit the entertainment centers is investigated and
compared to the characteristics and shopping behavior of consumers who do not. Factors
investigated include the distance traveled to reach the mall, demographic characteristics and
group composition, the amount of time and money spent at the mall stores, the department
stores, and the food court.
Markets/Shopping Districts
• Chandani Chowk
• Gandhi Nagar
• Green Park

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• Connaught Place
• Lajpat Nagar
• Janpath
• Khan Market
• Sarojini Nagar
• South Extension
• Tilak Nagar
• Vasant Kunj
• Vasant Vihar
• Karol Bagh
• Kamla Nagar
• Rajouri Garden
• Nehru Place
• Rohini
Wholesale Markets
• Okhla Mandi
• Mehrauli
• Chandni Chowk
• Khari Baoli
• Ghanta Ghar
• Bhajanpura

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• Shopping Malls
Delhi
• Ansal Plaza, Hudco Place
• Pacific Mall,Subhash Nagar
• D Mall, Rohini
• Metro Walk Mall, Rohini
• Cross River Mall, Shahdara
• North Square Mall, Pitampura
• Select Citywalk, Saket
• West Gate Mall
• TDI Mall
• TDI Paragon
• The India Mall
CHAPTER:2

68
LITERATURE
REVIEW
REVIEW OF LITERATURE

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Researchers have looked into the importance of customer satisfaction, (Kotler, 2000) defined
satisfaction as “person’s feelings of pleasure or disappointment results from comparing a
products
perceived performance (or outcome) in relation to his or her expectations”. The key of
achieving organizational goals consists in determining the needs and wants of target markets
and delivering the desired satisfaction more effectively and efficiently than competitors’.
Muhammad Ali Tirmizi, Kashif-ul-Rehman, M.Iqbal saif (2009), in their study on “An
Empirical Study of Consumer Impulse Buying Behavior in Local Markets” have clearly
indicated that there exists a weak association between consumer lifestyle, fashion
involvement and post decision stage of customer purchasing behaviour with the impulsive
buying behaviour.
Johan Anselmsson (2006) “on sources of customer satisfaction with shopping malls, a
comparative study of different customers segments”, a study mainly focused on customer
satisfaction and visit frequency at shopping malls among customer segments based on age
and gender. It was found eight underlying factors are important to customer satisfaction.
Those are selection, atmosphere,
convenience, sales people, refreshments, location, and promotional activities and
merchanding policy.
Baltas, Argouslidis and Skarmeas (2010) demonstrated that shopper characteristics
are related to dispersion of patronage among more stores. Shopping behaviour appears to
be partly driven by cost–benefit tradeoffs, suggesting differential responsiveness to
incentives by customers. This is particularly relevant for retailers who wish to design and
implement communication and loyalty programs to defend their customer base, since the
responsiveness of targeted customers determines the efficiency of these policies. They also
suggested that loyalty programs can be more than a defensive means of keeping loyal
customers and sustaining loyalty levels. The challenge rests in targeting non-loyal customers
who are more likely to respond to marketing initiatives. They also showed that heavily
spending and multi-member households tend to disperse supermarket patronage and both

68
heavy grocery spenders and large families adopt such shopping patterns in order to find
better deals and maximize value-for-money. Moreover, large households shop around
aiming at a 121School of Management Studies, Punjabi University, Patiala Malls and
Hypermarkets: Perspectives of Contemporary Shoppingmore precise matching of the diverse
and heterogeneous product needs of their members. Much as a multi-store patronage may
be an established shopping pattern for large families and heavy grocery spenders, retail
managers can still try to increasetheir loyalty.
Brunner and Mason (1968) investigated the importance of driving time upon the
preferences of consumers towards regional shopping centers. They expressed that although
it is recognized that population, purchasing power, population density, newspaper
circulation, and other factors are influential in determining the shopping habits of
consumers, a factor which is generally overlooked is the driving time required to reach the
center. In this study, it was established that the driving time required to reach a center is
highly influential in determining consumer shopping center preferences. The most
consistent and significant driving time dimension in delineating shopping center trade areas
was found at the 15-minute driving points, asthree-fourths of each center’s shoppers
resided within this rang.
Indian Retail Industry is ranked among the ten largest retail markets in the world. The
attitudinal shift of the Indian consumer and the emergence of organized retail formats have
transformed the face of Retailing in India. With the sign of reemergence of economic growth
in India, consumer buying in retail sector is being projected as a key opportunity area. As a
consequence, Indian corporate houses are refocusing its strategic perspective in retail
marketing with the idea to use resources optimally in order to create core competence and
gain competitive advantageThe paper theme is to analyse finer strategic perspective for the
retail sector in India and suggest measures so that the corporate strategists could incorporate
the same both qualitatively andquantitatively. Based upon the qualitative judgment, a retail

68
unit may be given an overall understanding about the expected performance that can further
be corroborated by quantitative analysis.Retail trade has emerged as one of the largest
industry contributing to employment generation, revenue generation, increased turn over and
many more. Organized retailing is showing signs of enormous creativity. It. has emerged as
one of the most dynamic and fast paced industries with several players entering the market.
As a matter of fact retailing in India is gradually edge its way towards becoming the next
boom industry. This paper provides detailed information about the growth of retailing
industry in India. It examines the growing awareness and brand consciousness among people
across different socio-economic classes in India and how the urban and semi-urban retail
markets are witnessing significant growth . The paper includes growth of retail sector in
India, strategies, strength and opportunities of retail stores, retail format in India, recent
trends, and opportunities and challenges. This paper concludes with the likely impact of the
entry of global players into the Indian retailing industry. It also highlights the challenges
faced by the industry in near future

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CHAPTERE:3
OBJECTIVE OF
RESEARCH
OBJECTIVES OF THE RESEARCH
1. To study of opportunities in organize retail stores in New Delhi.
2. To study of challenges in organize retail stores in New Delhi.
3.To study the consumer behaviour for shopping malls in New Delhi.
4.To study the level of customer satisfaction in shopping mall New Delhi .

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CHAPTER:4
SCOPE OF THE
RESEARCH
SCOPE OF THE RESEARCH
1. It is helpful to improve the service quality of shopping malls in New Delhi.
2. To Expand the of authorized shoppimg malls in New Delhi.

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CHAPTER : 5
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is a framework or blueprint for conducting the marketing
research project.It details the procedures necessary for obtaining the information
needed to structure or solve marketing research problems.

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Exploratory research :-
The research design for the present study is basically descriptive and
exploratory in nature. The study started with exploratory research design in
order to have a deeper insight of the changing retailing environment. This help
the researcher formulate the research hypothesis for the present study.
Descriptive research:-
The descriptive research design is used to describe the relationship between
various dependent / Independent variables which were explored during
exploratory study.
SAMPLE SIZE
This research involves the sample size of 100 customers of New Delhi
shopping malls.
SAMPLE AREA
1. PACIFIC MALL(ANAND VIHAR)
2. AMBIENCE MALL (ANAND VIHAR)
3. DLF EMPORIO (ANAND VIHAR)
DATA COLLECTION

68
 Primary data: I have collective data from these following source :-
1. Questionnaires
2. Service center owner’s view
3. Interview
 Secondary data:I have collective data from these following sources:-
1. Magazines
2. Newspapers.
3. Records of service center.
4. International Journal
5. Annual report of shopping malls
TOOLS AND TECHNIQUES OF DATA ANALYSIS
Rating scale:-

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As all the possible items are considered for research, the sampling method
adopted is convenience sampling.
Data Usage:
For analysis and interpretation, only primary data is used. However for
conclusion and recommendations both primary and the secondary data along
with the verbal knowledge and information although obtained from respondents,
though they are outside the parameters of questionnaire were also included
The data collected from these sources were analyzed using various tools like
percentage analysis, chi-square test, correlation and cross table analysis method.

68
CHAPTER :6
DATA ANALYSIS
QUES. 1. What is the Gender ?
01. Male 56%
02. Female 44%

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Interpretation: - Under this the 56% are male and 44% are female.
QUES.2.what is Marital Status ?
01. Single 58%
02. Married 42%

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Interpretation: - Under this graph 58% are single 42% are married .
QUES.3.. What is the Profession ?
01. Government employee 19%
02. Private employess 35%
03. Self employee 02%
04. Professional 04%
05. Student 40%

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Interpretation: - Under this the 19% are the government employee, 35% are
private employee, 2% self employee, 4% professionals and 40% students are prefer
on organized retail stores .
QUES.no.4.what is consumer Education qualification ?
01. Under graduation 05%
02. Graduation 25%
03. Masters 70%

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Interpretation: - The 5% under graduate 25% graduate 70% masters degree understand
the opportunities & challenges of organized retail stores .
QUES.no.5 what is Income in month ?
01. 10-20k 50%

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02. 20-30k 38%
03. 30-40k 07%
04. Above 40k 5%
Interpretation:- Under this the 50% people income is 10-20 , 38% people 20-30 , 7% 30-
40, 5% above 40 prefer organized retail stores .
GENERAL INFORMATION
QUES..No.1. What is the Awareness of discount scheme of organized retail stores in NCR?
01. Strong agree 50%
02. Agree 35%
03. Strong Disagree 10%

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04. Disagree 05%
INTERPRETATION :- The 50% peoples are strongly agreed of discounted schemes of
organized retail stores and 35% people are agree and 10% peoples are strongly disagree and
5% are disagree.
QUS .NO.2 promotional tools of organised retail store in NCR is
01. Excellent 90%
02. Good 09%
03. Bad 01%

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INTERPRETATION : - 90% peoples are says that promotional tools of organized retail store
is excellent but 9% people says good and some people says poor 01%
QUES.3. The layout of organized retail store is ?
01. Strong Agree 6o%
02. Agree 35%
03. Cant say 03%
04. Disagree 02%

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INTERPRETATION: - 69% people strongly agree about the layout of organized retail store
22% people agreed and 3% people are not say any thing 2% people disagree.
QUES.No.4 What is promotional tools of organized retail store in NCR ?
01. Strong agree 60%
02. Agree 20%
03. Cant say 12%
04. Strong disagree 06%
05. Disagree 02%

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INTERPRETATION : - The 60% people are strongly agree about promotional tool of
organized retail store 20% people are agree 12% people cant any thing 6% people strongely
disagree 2% people disagree.
QUES.NO.5 What are the attitude of customer behaviour in organised retail store ?
01. Stronge agree 50%
02. Agree 30%
03. Cant say 15%
04. Disagree 05%

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INTERPRETATION: - 50% People are strongly agreed about the customer behavior in
organized retail stores 30% people agree 15%c bant say any thing 5% people disagree.
QUES.NO.6 What are the lavel of using organise retail store ?
01. Satisfied 70%
02. Dissatisfied 10%
03. Good 15%
04. Poor 05%

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INTERPRETATION : - The 70% people says that the lavel of organized retail store is best
some people says good who is 15% 10% people dissatisfied 5% says poor.
QUSE.NO.7 What is opportunities of organised retail stores in NCR ?
01. Dissatisfied 08%
02. Average 34%
03. Satisfied 50%
04. Strongly dissatisfied 05%

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INTERPRETATION: - 50% People says that the opportunities of organized retail store is
best 34% people says good and 8% people dissatisfied 5% strongly dissatisfied.
QUES.No. 8 Are you satisfied of the NCR malls product quality ?
01. Good 11%
02. Agree 05%
03. Excellent 80%
04. Bad 04%

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INTERPRETATION : - 80% People are satisfied of NCR mall product quality 11% says good
5% people agree 4% bad.
QUES.NO.9 Are you satisfied to NCR shopping malls ?
01. Strongly satisfied 59%
02. Strongly dissatisfied 11%
03. Average 25%
04. Poor 05%

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INTERPRETATION : - 59% people are strongly satisfied to NCR shopping malls 11% people
strongly dissatisfied 25% average 5% poor.
QUES.NO.10. How frequency do you visit a mall ?
01. More than once a week 53%
02. Occasionally 10%
03. Daily 28%
04. Monthly 09%

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Interpretation: - 53% People go to the shopping mall more than once a week , 10% people
occassionaly,28% daily, 9% monthly.
QUES.NO.11. what are the challenges of organized retail store ?
01. Very satisfied 40%
02. Good 30%
03. Average 20%
04. Not satisfied 10%

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Interpretation : - 40% people are satisfied 30% say good 20% says average 10& peoples
not satisfied.
QUES.NO.12. Primarily I visit a shopping mall?
01. Shopping 55%
02. Watch Movie 15%
03. Attend party 10%
04. Meet friend 20%

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Interpretation:- 55% People visit a shopping mall for shopping, 15% people visit watch
movie, 10% attend party, 20% people meet friend.

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INTERPRETATION:-
Out of the total 9 variables, 3 factors have come out after the factor analysis 53.38% of the
respondents said that three factors are most important for them. The standard Eigen value
against which the factors are measured is .7. Thus, the three factors satisfying this condition
are
Services
Discount and promotional schemes
Purchase of household items
These three have loading value of .818, .738 and .714 respectively.
The remaining data that is around 47% is lost and is called sampling error.

68
Findings:-
(1) The study finds that service plays a very important role in the retail sector
(2) People specially housewives used to purchase household items in retail outlets like
CTC PLAZA.
(3) Discounts and promotional schemes plays a very important role in attracting the
crowed of customers in malls.
(4) Ambitions losing its identity in the market because of poor range of products and due
to the arrival of the various superior competitors.
(5) The customer has satisfied the branded products of organized retail stores .
(6) In future aspect the customer buying behavior attitude change in organized retail
store .
(7) There is attractive layouts facilities in organized retail store .
(8) Behavior of the Employees with the Customers should be very good.
(9) Quality of searvice is good.

68
CHAPTER :8
LIMITATION
&
SUGGESTION

68
LIMITATION
. Time constant
. The response given by customer may be inaccurate
. There can be some biasness in the information provided by the mall
Executive
. Some secondary data can be provided by the mall executive

68
SUGGESTIONS
(1) There should be good infrastructure in organized retail store.
(2) The ambiance should be attractive and effective in future.
(3 )The payment facility should based on e – payment system.
(4) The discount police should attractive.
(5) The promotional scheme based on continuous performance.
(6 )Better service from the Restaurants because Customers do not like Self –service.
(7) Better returning services.
(8)The Employees should be well groomed.

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Conclusion:
The first and most objective of our study is comparative study of consumers buying
behavior in retail mall. The study of consumer behavior is the most important factor for
marketing of any goods and services. The consumer behavior suggest how individual,
groups and organization select, buy, use and dispose of goods, services, ideas or
experience to satisfy there needs and wants. It also clues for improving or introducing
products or services, setting price, devising channels etc. The marketers always look for
emergent trends that suggest new marketing opportunities and here in India a lot of
opportunities are available.
Over the last few years, retail has become one of the fastest growing sectors in the Indian
economy. Organized retail is expected to grow to 10-11% of the Indian retail industry in the
next 5 years and FDI in retail is one of the most talked about topics now. There is hectic
activity in the sector in terms of expansion, entry of international brands and retailers as well
as focus on technology, operations and processes. All these present a tremendous opportunity
in this new high growth industry. While the opportunities in Indian retail are immense, all
players must be aware that the consumer culture, business practices and industry dynamics in
India can differ substantially from what they are accustomed to at home, often leading to
pitfalls for the unprepared.
Big Bazaar is the pioneer and undisputed leader in the Indian Retail scenario with a share of
54% in the organized retail sector. Thus, a study of customer behavior in reference to malls
was very important as malls holds the true Indian value system in its business strategies and
functioning so as to get more connected to Indian consumers and to maintain a happy
relationship with them.
People are keen to buy products from the CTC. Majority of them goes at least twice a month
to do the purchasing with average spending of Rs. 500 to 2000 on each
Outing to the CTC. They come to CTC due to the low prices of products and attractive
schemes offered by the store.

68
Food & Beverage category is the most bought by the people followed by the dairy products,
fruits & beverage segment. Majority of the people despite having credit/debit card prefer to
pay their bills via cash. Big Bazaar is also having its own credit card in form of “CTC” which
is a JV between the Future Group and the ICICI bank. Thus, giving customers a convenient
option to purchase the products.
People are very happy with the variety of the products available at the store and are very keen
to do the repurchase. Thus, Big Bazaar is converting the existing customers to loyal
customers and also attracting new customers from other stores also. These satisfied customers
are ready referring Big Bazaar to their family members, friends and relatives. Hence, there is
very good word of mouth publicity of Big Bazaar.
Behavior level of customers with regards to price and value is very good. Thus, Big Bazaar is
successful in making and maintaining a healthy and long term relation with its customers.
Thus, in real sense, Big Bazaar is the undisputed leader in the organized retail sector and with
each passing day it is deepening its root in retail with a large and satisfied base of customers.

68
BIBLIOGRAPHY;
1.Kotler, Philip 2000, Marketing Management, 10thEd., Prentice Hall of India
Pvt Ltd, New Delhi.
2.Vasahayam, Madona 1998, ‘Big Deal’, Praxis Quarterly Journal on
Management, August, Vol.2, Page no12-16.
3.Aijo,ts (1996)Tthe Theoretical & Philosophical Underprimming of
Relationship Marketing Europian Journal of Marketing Vol.30 Page no. 8-18.
4.Clark, Margaret,5.(1998) International Process In Close Relationship” Annual
Review Of Psychology.
5.Gabbot, M And Hogy.G .(1998)”Consumers And Services,John And
Sons,Chichests.
6.Sahoo Debajani , Mishra Govind Hari (2008 ) ,” Organized retail in India “ ,
Indian journal of marketing , January pp. 35-43 .
7.Singh Harpreet kaur Narinder (2008),” Retailing in India :recents trends &
challenges “ , Indian journal of marketing , april, pp. 49-55 .
8.Prabha Laxmi G., Baseer Amatual (2007), “emerging retail trends in India “ ,
Indian journal of marketing , December pp. 22-27 .
Websites:-
www.ctcplaza.com
www.ambiancemall.com
www.bigbazar.com

68
QUESTIONNAIRE
Personal information:-
Name : - -----------------------------
Contact name: - -----------------------------------
Address: - ---------------------------------------------
Email Id: - ------------------------------------------------
Q.1 . What Gender :-
(a)Male ( ) (b) Female ( )
Q. 2. What Age :-
(a) 0-20 years ( ) (b) 20-30 years ( ) (c) 30-40 years ( )
(d) 40 Years above ( )
Qus. 3.Material Status:-
(a)Married ( ) (b) Unmarried ( )

68
Qus.4.What Profession:-
(a) Government employee ( ) (b) Private employee ( )
(c) Private employee ( ) (d)Self employee Professional ( )
Qus.5. Consumer Education Qualification: -
(a)10+2 ( ) (b) Under graduate ( )
(c) Post graduate ( ) (d) professional ( )
Qus.6. Income in month:-
(a)Below-10k ( ) (b)10-20k ( ) (c)20-40 k ( ) (d ) Above 40k()
GENERAL INFORMATION:
Ques.1 What is the awareness of discounted scheme of organized retail store
in NCR ?
(a)Agree ( ) (b) Strong agree ( )
(c) Strongly disagree ( ) (d) Disagree ( )
Ques.2. Promotional tools of organized retail store in NCR is :-
(a) Excellent ( ) (b) Good ( )
(c)Bad ( )

68
Qus.3. The layout of organized retail store is:-
(a) Agree ( ) (b) Strong agree ( )
(c) Cant say ( ) (d) Disagree ( )
Qus.4.What is promotional tool of organized retail store is :-
(a)Strongly agree ( ) (b)Strongly satisfied ( )
(c) Agree ( ) (d) Dissatisfied ( )
(e) Cant say ( )
Qus.5.What are the attitude of customer behaviour in organised retail :-
(a)Agree ( ) (b)strong agree ( )
(c)Cant say ( ) (d)Disagree ( )
Qus.6.What are the lavel of using organized retail store :-
(a)Satisfied ( ) (b)Dissatisfied ( )
(c) Good ( ) (d)Poor ( )
Qus.7.What is opportunities of organised retail store in NCR:-

68
(a) Excellent ( ) (b)Good ( )
(c)Best ( ) (d) Poor ( )
Qus.8. Are you satisfied of the NCR malls product qualities :-
(a )Excellent ( ) (b)Agree ( )
(C)Good ( ) (d)Bad ( )
Qus.9. Are you satisfied to NCR shopping malls:-
(a) Strongly satisfied ( ) (b) Strongly dissatisfied ( )
(c) Average ( ) (d) Poor ( )
Qus.10. How frequency do you visit a mall ?
(a)More than once a week ( ) (b) Occasionally ( )
(c) Daily ( ) (d) Monthly ( )
Qus.11.What are the challenges of organized retail store ?
(a)Very Good ( ) (b) Good ( )
(c) Average ( ) (d) Not satisfied ( )

68
Qus.12. Primarily I visit a shopping mall ?
(a)Shopping ( ) (b) Watch movie ( )
(c) Attend parties ( ) (d) Meet friend ( )

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