INMANTEC BUSINESS SCHOOL

GHAZIABAD

PGDM-2012-14

A RESEARCH REPORT SYNOPSIS ON CONSUMER BUYING BEHAVIOUR IN ORGANIZED AND UNORGANIZED RETAIL STORE

SUBMITTED TO: PROF. SHASHANK MEHRA

SUBMITTED BY: 13- ARPITA SARKAR 23- DIPIKA LAKRA 25- FIRDAUS AHAMAD 30- MOHD ZUVAIR 47- REEMA KUMARI

INTRODUCTION
OVERVIEW OF RETAIL INDUSTRIES A sale of goods and commodities in small quantities directly to the consumer is known as Retailing. A Retailer buys goods or product in large quantities from the manufacturer or importers either directly or through a wholesaler and then sells small quantities to the end user. The retail industry of today is characterized by hyper competition, convergence and constant change. The market for retail malls and services is exploding and new actors are continuously entering the market. The rapid advancements and changes in this industry provide companies with business opportunities as well as challenges due to an increasingly complex environment in terms of competition and technology. Globally, there has been significant change in the retail sector over the past two decades. Much of the rapid growth in organized retail business in the developing countries is due to the entry of global retailers. Indian retail industry is the largest industry in the private sector employing around 8% of total labor force and contributing to over 10% of the country's GDP. It is six times bigger than Thailand and five times larger than South Korea and Taiwan. India is in the midst of a retail boom.

Unorganized and Organized Retail:

Organized retail or modern retail is usually chain stores, all owned or franchised by a central entity, or a single store that is larger than some cut-off point. The relative uniformity and standardization of retailing is the key attribute of modern retail. The size of each unit can be small so that a chain of convenience stores is modern retail. A single large department store is also modern retail. (ICRIER)

Global Retail Industry

Retail, with total sales of $ 6.6 trillion, is the worlds largest private industry ahead of financial industries $ 5.1 trillion. It is also home to a number of the worlds largest enterprises. Over 50 of the Fortune 500 companies, and around 25 of the Asian top 500 companies, are retailers. The industry accounts for over 8 percent of the GDP in western economies.

By 2010, the list of Indias top 10 retailers will have at least 5 Indian corporates. Retail Marketing will go through a tremendous change in India this millennium. It will change Indias cities, its people, and its households. The Indian consumer is reportedly the largest spender in Singapore and London. It is, therefore, strange that there have, so far, been few efforts to present the product in the right kind of environment in India. Indeed, the right shopping experience does induce Indian consumers to spend more.

Few factors that driving the growth are:

Mall Mania: The developing mall culture in India Emergence of region-specific formats Emergence of discount formats Entry of international players

Major Retail chains in India

Shoppers Stop Big Bazaar and Future Bazaar RPG group Lifestyle Ebony Trent Retail

TOTAL SHARE OF ORGANIZED AND UNORGANIZED RETAIL IN SOME COUNTRIES

Country India Japan Pakistan China USA

Total Retail Sales

Share of Organized Retail (%) $322,000,000,000 4% $1,182,000,000,000 66% $67,000,000,000 1% $785,000,000,000 20% $2,983,000,000,000 85%

Share of Unorganized Retail (%) 96% 34% 99% 80% 15%

Food and grocery retail:

The food business in India is largely unorganized adding up to barely Rs.400 billion, with other large players adding another 50 per cent to that. The All India food consumption is close to Rs.9000 billion, with the total urban consumption being around Rs.3300 billion. This means that aggregate revenues of large food players is currently only 5 per cent of the total Indian market, and around 15-20 per cent of total urban food consumption. Most food is sold in the local wet market, vendors, roadside push cart sellers or tiny kirana stores. According to McKinsey report, the share of an Indian household's spending on food is one of the highest in the world, with 48 per cent of income being spent on food and beverages.

ORGANIZED RETAIL STORE

25 20 15 10 5 0 22 12 9 8 5 3 2 1 1

Objective of the study

1. 2. 3. 4. 5. To find the consumer buying behavior in organized and unorganized retail store. To know the consumers perception about organized retail store To know the consumers perception about unorganized retail store. To know the share of organized and unorganized retail store in India. To know the factors influencing store choice for grocery shopping in Ghaziabad, NCR.

Research Methodology
For this study, data was collected through an exploratory sample survey of 250 respondents in Ghaziabad, Uttar Pradesh & NCR by using a questionnaire containing both open ended and close ended questions. Some of these questions used five point Likert scale to capture data relating to 5 dimensions parameters. For this study hypothesis were developed and tested using chi-square, T test, Mean, Median, Regression, and Co-relation. Data analysis was carried out with the help of SPSS. Since the objective of the study is to understand the consumer buying behavior in organized and unorganized retail sector. We tried to understand the below mentioned points. The place of purchase for different categories of products Need fulfillment by the nearest market Influence of family, friends, advertisements and shopkeepers on purchase behavior Level of Satisfaction with existing retail market. Demographic influences if any, affecting the preferences of different buyers

Type of research: - Qualitative as well as Quantitative Research Design: Descriptive Study Data: 1. Primary data- Data collection through Questionnaire, interview, etc. 2. Secondary data- Secondary data, gather from various sources like Internet, magazines, newspapers, journal etc. Research instrument: - Use of Microsoft excel, table, bar graph and pie chart for data analysis. Sample location: Ghaziabad, NCR Sample size: 250 Sampling unit: 250 candidates from retail stores; like, Big bazaar, Reliance fresh, Easy day. Sample procedure: Random sampling. Data analysis techniques to be used 1. 2. 3. 4. 5. Mean Median Co-relation Regression Factor analysis

Conclusion & Finding

This study discusses the shoppers' perceptions towards grocery in reference to purchase motivations, socio-cultural value, and life-style that mediate the emotions and buying behavior. Retail store buying consumers typically patronage multi-channel retail outlets, designer brands, and invest time and cost towards an advantageous product search. The study suggests that consumers with sustainable purchase intentions for grocery are motivated to seek benefits of the store and brand specific promotions and prices enhancing their shopping basket. The majority of shoppers rely on store patronage, brand value and building loyalty over time to continue benefits of the store and brand promotions. The shopping motivation attributes of retailers and customer beliefs influence patronage behavior among shoppers. The discussions in the study also reveal that shopping stimulation is largely driven by organized and unorganized retail store attractions, inter-personal influences, sales promotions and comparative gains among urban shoppers.

Future scope of study

Retail industry is the fastest growing industry. So there are most likely chances to grow research on retail sector. Store behavior choice is widely spread study for tracking the consumer behavior in organized as well as unorganized retail store, such as, Big bazaar, Reliance fresh, Easy day etc.

Bibliography
www.google.com www.wikipedia.com www.journals.com www.retailin.com
www.scribd.com