A Comparative Study of Consumers Prefernce for Big Retailers Against Small Departmental Stores

ASSIGNMENT OF RESEARCH documentary A COMPARATIVE STUDY OF CONSUMERS PREFERENCE TOWARDS plumping RETAILERS AGAINST SMALL DEPARTMENTAL STORES . SUBMITTED TO SUBMITTED BY TUTOR commerce RESEARCH METHODS REGD NO. 11209876 SCHOOL OF BUSINESS AND arts LOVELY PROFESSIONAL UNIVERSITY INTRODUCTION unformed sell is defined as an let outlet run topical anestheticly by the possessor or c atomic number 18taker of a reveal that lacks technical and accounting standardization. The supply chain and sourcing ar also done topical anestheticly to meet local needs.Its organized counterpart may non baffle its supplies from local sources. Indian sell is dominated by a large deed of s centre of attention sellers consisting of the local kiryana shops, owner-manned general investment companys, chemists, footwear shops, apparel shops, paan and beedi shops, hand-cart hawkers, pavement vendors, etcetera which together make up the so-called uncoordinated sell or traditionalistic retail. organised retail is nothing but a retail regularize where all the items are segregated and brought down the stairs one roof, unlike the nonunionized retail where there are several(predicate) things are sell in different shops.It also aims to bring maximum of different brands making the same type of product together. In India there has been a huge proceeds in organized retail since 2002-03 and this is associated with the growth in the economy and the attendant rise in consumption spending. The drop dead 3-4 years have witnessed the entry of a number of organized retailers feeding encloses in divers(a) advanced(a) set ups in metros and another(prenominal) principal(prenominal) cities. make retail has begun to tap the enormous merchandise but its piece indeed is s stroll. A number of large moving in houses have entered the retail business with very aspiring(prenominal) expansion plans.Big contrary retailers are also wounding to invest in India but their entry dep ends on changes in the presidencys FDI policy regarding sell. Organized sell played a significant image in the dedicate-day break-danceed countries during their period of lavishly growth. Since the early 1990s, it is also contributing substantially to the growth of developing countries. In India, organized retail is self-possessed to make a mark in the boney future. Modern retail sector is at the hamlet where the growth of organized retailing and growth in the consumption by the Indian population is handout to take a higher growth trajectory.It is undergoing a major transformation as entry of international players and watchful expansion by major Indian retailers has opened new vistas of joint ventures, tie-ups and franchise fling new formats, serve, private labels, mends and recently to diverge from metros to little towns, Arvind Singhal Chairman Techno pak Advisors has rightly said that, A mass of international retailers and brands are most believably to project at India, as global grocerys have modify and the Indian economy has proved to be erupt than most other countries.With the ever-changing retail scenario the consumers are bound to breast beyond traditional retail stores towards organized outlets may be with nearly reservations. This necessitates weigh of the factors which influence the consumers to move towards the organized retailing from unorganized one besides most prioritized attributes which attract the consumers towards either of them. selling in India is one of the pillars of its economy and accounts for 14 to 15% of its GDP.The Indian retail market is estimated to be US$ 450 billion and one of the top tail fin retail markets in the macrocosm by economic value. India is one of the fastest growing retail markets in the world, with 1. 2 billion people. Indias retailing industry is fundamentally owner manned small shops. In 2010, bouffant format convenience stores and supermarkets accounted for about 4% of the indus try, and these were present only in large urban centers. Indias retail and logistics industry employs about 40 million Indians (3. 3% of Indian population).Until 2011, Indian central government denied opposed direct investment (FDI) in multibrand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even whizz-brand retail was hold in to 51% ownership and a bureaucratic process. In November 2011, Indias central government announced retail reforms for two multi-brand stores and single-brand stores. These market reforms paved the way for retail insane asylum and competition with multi-brand retailers such(prenominal) as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple.The announcement sparked intense activism, both in opposition and in support of the reforms. In declination 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it r each( prenominal)es 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 want that the single brand retailer source 30% of its goods from India.Indian government continues the hold on retail reforms for multi-brand stores. IKEA announced in January that it is putting on hold its plan to open stores in India because of the 30% requirement. Fitch believes that the 30% requirement is likely to significantly delay if not keep open most single brand majors from Europe, the States and Japan from opening stores and creating associated jobs in India. LITERATURE polish Many studies have been undertaken to understand and analyze the changing consumer penchant for organized retail outlet baker and Haytko (2000) in their qualitative study of teen girls and their mall shop experiences, find that the teens are looking for stores that bear specific merchandise, especially the latest fashions. Coolness of the mall is tied to the types of clothes and the merchandise the stores carried. * (Pachauri Moneesha, 2001), attempt to develop a framework for studying consumer behavior by considering the evolution of the field of consumer research and the different theories of consumer acquire behavior that have influenced the consumer gustatory sensation.India is on the threshold of a revolution in its retail industry, and if managed cleverly, it would pay bountiful returns beyond retailers expectations * (Mangleburg et al. , 2004). ) teens like to hang-out at malls and meet their friends Indeed, the tender aspects of the mall, such as revengeing and shopping with friends, are major activities for teens. * Pan and Zinkhan (2006) found only sex as a key predictor of absolute frequency of store visitwomen visit the store much often than men.Other studies also found gender to be a major predictor of shopping behavior, with women vie a more significant con stituent in retail shopping, especially in traditional societies. * (Mishra S. Mridula, 2007). The changing consumption postures trigger changes in retail styles of consumers, for consumers, the shopping mall or variant of organized retail format is the preferred type of retail store, ascribable to convenience and variety. * Singh (2007) had concluded that production oriented market has been shifting towards consumer oriented market. Traditional consumption pattern has also been facing large-scale changes.The study pointed out that the degree of brand awareness of divers(a) nutrition products among urban respondents is more in comparison to the farming(prenominal) consumers. * Arshad et al. ,( 2007) have found that dynamics of the demographics, double income, urbanization and internet revolution tilt the consumers preference towards organized retail outlets. * Mathew and Gupta (2008) while studying the sham of organized retailing on traditional retailing observed that with th e increase in number of unhomogeneous formats for shopping like malls, departmental stores, hypermarkets etc. the Indian consumers preferences are changing towards these. * (Paromita Goswami & Mishra S. Mridula, 2009). Customer business organisation to grocery stores was found to be positively cogitate to location, helpful, certain salespeople, home retail, cleanliness, offers, quality and negatively tie in to travel convenience. Kiranas do well on location but poorly on cleanliness, offers, quality, and helpful trustworthy salespeople. The converse is true for organized retailers. Tender and Crispen, (2009) analyse the influence of in-store shopping environs on unprompted buying among consumers and the results show that among poor consumers, economics factors such as cheaper prices, coupons and helpful shop assistants were more likely to influence impulsive buying. On the other hand, factors with an atmospheric effect such as music, fresh thread and ventilation may have o nly been important in helping to keep consumers longer in shops although they were unlikely to directly influence impulsive buying. Ghosh and Tripathi (2010), essay to analyze purchase pattern of customers towards organized retail outlets in terms of merchandise categories purchased, time washed-out within the store, number of merchandise purchased on each visit, stores switching behavior and store attribute. The results of the study picture that the younger generation has greater tendency to visit organized retail outlets. The shoppers which remained within a store for at least two hours considered shopping to be a stress releaser and fun activity.The commonly purchased items from a retail outlet are garments followed by groceries, lifestyle products and household appliances. The study further reveals that customers in spirit level 2 and tier 3 cities evaluate a store on convenience and merchandise mix, store atmosphere and services * Urvashi, Gupta (2012) in her study in Jamm u. RNCOS (2009) has stated that as per Global Convenience cut in Market Analysis, changing consumer preferences, lifestyle and cost increase income level, which is heavily influenced by economic growth, remains the major driving force for c-store industry in the Asiatic region. Purohit and kavita (2012) according there studies that the traditional retailers are not very much clear about the consequences of the mod retailing the traditional retailers are netural or undecided, new-made retailing bequeath cut the profit border of the traditional retailers the modern retailing will come before healthy competition in the market, modern retailing will reduce the sales volume of the traditional retailers and traditional retailers should improve customer care services in the era of modern retailing.RESEARCH METHODOLOGY objective lens OF THE STUDY A comparative study of consumers preference for big retailers against small departmental stores at cc departmental store lpu. For this s tudy an interview was conducted and for this we visited the owner of cc departmental store at lpu and discussed various problems faced by him. The major problem he foc employ on was that his sales were declined because of the shifting consumers preferences from departmental stores to wanabuy mall located at lpu.He discussed various other problems also like promotion is banned collectible to policies of lpu, inventory management etc. So to look into this matter this survey is conducted and the results will be analysed later. there is a need to study shifting preferences of consumers towards various retail formats. Whether there is any relation amid the demographic profile of the consumers and preferred retail format and does income besides other family attributes play a role in selection of the retail formats are some of the questions require a probe in.One of the objectives set for this study is to identify the factors that influence the cream of organized retail trade. For this purpose, the choice of retail store will be studied along with demographic factors like gender, age, qualification, occupation, yearly income and location of the respondents. This present study will be conducted with a purpose of understanding the changes taking place in the minds of consumers towards modern retail formats and traditional retailers. race In my study the population will be all the students and staff embers of lovely professional university. try Primary data will be calm from 60 respondents which will include (40 students and 20 staff members). These respondents will be selected by convenience sampling technique of probability random sampling. Secondary data will be collected from various journals, books, articles, newspapers. QUESTIONNARE A structured questionnaire will be prepared in which there will be questions asked to respondents related to their visits in departmrntal stores and big retails and various scales will be used i. Likert scale, and the questio ns wil be of open ended and multiple choice questions. The purpose of this study will be to appropriate the preferences of consumers, whether they like to visit small stores or big organized retails and what is the main reason for their shifting preferences. It will be helpful for both the organized as well as unorganized retailers. REFERENCES * Baker, Julie, and Diana Haytko (2000), The Mall as Entertainment Exploring Teen Girls Total Shopping Experiences, journal of Shopping Center Research, 7(1) 29-58. Pachauri Moneesha (2001). Consumer Behavioura lit Review. The market Review, 2(3), 319-355. * Arshad, S. A. (2007) Issues in Retailing, Research in Management and Technology, Ed. by Aneet and Ramanjeet Singh, Deep and Deep Publications Pvt. Ltd. , pp 109-118. * Singh, H. (2007) Consumer knowingness and Consumption Pattern of Food products in Haryana, daybook of IMS group, Vol. 3, No 1, pp 24-33 * Mishra S. Mridula (2007). The Consumption Pattern of Indian Consumers prime(a) bet ween Traditional and Organized Retail. Retrieved Feb. 1, 2012, from http//ssrn. com/abstract=994238 * Goswami, P. and Mishra, M. S. (2008) Would Indian consumers move from kirana stores to organized retailers when shopping for groceries? Asia peaceable ledger of Marketing and Logistics, Vol. 21, No. 1, pp 127-143. * Tender, M and Crispen, C. (2009) In-store shopping environment an impulsive buying, African ledger of Marketing Management, Vol. 1(4), pp 102-108 * Goswami Paromita & Mishra S. Mridula (2009). Would Indian Consumers Move from kirana Stores to Organized Retailers When Retail for Groceries?.Asia Pacific Journal of Marketing and Logistics, 21(1), 127-143. * Ghosh, P. et. al. , (2010) Customer expectations of store attributes A study of organized retail outlets in India, Journal of Retail & Leisure Property, Vol. 9, No 1, pp 7587 * Gupta, Urvashi (2012), Impact of Organized Retailing on Unorganized Sector, A study in Jammu Region. transnational Journal of Research in Com merce, IT & Management, Vol. 2(2012), No 01, pp 112-15. * India Retail Report (2009) The India Retail Story www. indiaretailing. om/indiaretailreport- 2009-detailed-summary. pdf * Indian retail The supermarkets last frontier. The Economist. 3rd declination 2011. http//www. economist. com/node/21541017 * India Goes Wild Over Wal-Mart. The Wall roadway Journal. November 29 2011. http//online. wsj. com/article/SB10001424052970203802204577066501218085104. html? mod=googlenews_wsj * A good retail decision badly sold. India Today. 3 December 2011. http//indiatoday. intoday. in/story/fdi-in-multibrand-retail-congress-cpim-bjpinflation/1/162586. html