STUDY TO ASSESS THE CONSUMERS BUYING BEHAVIOUR IN ORGANIZED RETAIL WITH SPECIFIC REFERENCE TO SPENCERS HYPER AT KOLKATA

EXECUITIVE SUMMARY
Study to assess the consumers buying behaviour in organized retail with specific reference to SPENCERS Hyper at Kolkata has been carried out with a view in mind to collect information on the customers of Spencers Retail Store with a view to analyze the trends in the Indian Organized Retail Industry with reference to changing trends in buying behaviour of consumers. The aim is to understand the effect of increasing income levels of consumers on the organized retail industry. There are three classes of variables involved in understanding consumer behaviour; STIMULUS, RESPONSE and INTERVENING variables. Stimulus variables, such as advertisements, products exist in both the individuals external environment. These generate a sensory input to consumers. Response variables are the resulting mental / or physical reactions of individuals who are influenced by stimulus variables. For e.g.: - purchasing a product or forming attitudes about it could be viewed as response variables. Many of the variables affecting consumers (such as personality, learning, and perceptions are external situations, motives, and so forth) cannot be directly observed. A questionnaire was prepared in order to conduct market survey. The questionnaire was based on different parameters to judge and understand the consumer behaviour and assessing changing behaviour of the consumers from unorganized retail to organized retail. The research carried out in this study was descriptive in nature. The study was aimed at knowing the various purchasing habits of a consumer. It gave an idea about the essential factors that are required now a day to attract customers in this competitive world.

TABLE OF CONTENT

CONTENTS 1. INTRODUCTION 2. OBJECTIVES OF THE STUDY 3. LIMITATIONS OF THE STUDY 4. COMPANY PROFILE 5. LITERATURE REVIEW 6. RESEARCH METHODOLOGY 7. RESEARCH ANALYSIS & INTERPRETATION 8. FINDINGS 9. RECOMMENDATION 10. CUSTOMER SUGGESTIONS 11. CONCLUSION 12. REFERENCES 13. APPENDICES Appendix -Questionnaire

PAGE NUMBERS 1 32 33 34 35 40 41 45 46 55 56 83 84 85 86 87 88 89 90 91 - 94

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INTRODUCTION
AN OVERVIEW OF RETAILING

The word 'Retail' is derived from a French word with the prefix re and the verb tailer meaning "to cut again". Evidently, retail trade is one that cuts off smaller portions from large lumps of goods. It is a process through which goods are transported to final consumers. In other words, retailing consists of the activities involved in selling directly to the ultimate consumer for personal, non-business use. It embraces the direct-to-customer sales activities of the producer, whether through his own stores by house-to-house canvassing or by mail-order business.

Manufacturers engage in retailing when they make direct-to-consumer sales of their products through their own stores (as Bata and Carona shoe companies, D.C.M. Stores, Mafatlals and Bombay Dyeing) by door-to-door canvass, or mail order or even on telephone. Even a wholesaler engages in retailing when sells directly to an ultimate consumer, although his main business may still be wholesaling. A retailer is a merchant or occasionally an agent or a business enterprise, whose main business is selling directly to ultimate consumers for non-business use. He performs many marketing activities such as buying, selling, grading, risk-trading, and developing information about cusotmer's wants. Aretailer may sell infrequently to industrial users, but these are wholesale transactions, not retail sales. If over one half of the amount of volume of business comes from sales to ultimate consumers, i.e. sales at retail, he is classified as a retailer. Retailing occurs in all marketing channels for consumer products.
Importance of Retailing

The retailer is an intermediary in the marketing channel because he is both marketer and customer, who sells to the last man to consume. He is a specialist who maintains contact with the consumer and the producer; and is an important connecting link in a complex mechanism of marketing. Though producers may sell directly to consumers, such method of distributing goods to ultimate users is inconvenient, expensive and time consuming as compared to the job performed by a specialist in the line. Therefore, frequently the manufacturers depend on the retailers to sell their products to the ultimate consumers. The retailer, who is able to provide appropriate amenities without an excessive advance in prices of goods is rewarded by larger or more loyal patronage.
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GENERAL SERVICES The general services which a retailer provides are: The retailer anticipates the wants of the consumers and then supplies them the right kind of goods at reasonable price. His job is to make the consumers buying as easy and convenient as possible i.e. he acts as a consumers' agent. He performs the service of bulk-breaking i.e. dividing large quantities into small units, such as individual cans, bottles, boxes, wrappers, packages, appropriate for consumer use. He offers a large assortment of merchandise, of suitable size, color, design, style and seasonal items-ranging from domestic utensils, household requisites to specialty goods.

 He creates time and place utility by storing the products in off season and by transporting these goods to the places where they can be readily available as and when needed by the consumer. He also assumes risks by guaranteeing the goods he sells to the consumer. He also offers free delivery of goods, credit on open accounts, free alteration, liberal exchange facilities, and instructions in the use of goods, revolving credit plans, and long term installment programmes. He adds to the convenience and ease of consumer purchasing by offering convenient shopping locations, market information and other services such as free parking privileges, lessons on product use and a multitude of other facilities may be offered and found sufficiently desired to result in increased patronage. He helps the producers in distributing their products by using advertisement display and personal selling. The level of retail sales is one of the most useful barometers of the nations economic health. For example when sales of cycles pick-up, sales of steel and components also increase, as does employment and thus increasing purchasing power. But when sales go down, manufacturers cut back production, unemployment increases and retail sales also goes down.

Overview of Retail Sector All over the world, retailing is undergoing a process of evolution and is poised to undergo dramatic transformation. With special reference to India, the retail sector employs over 10 percent of the national work force but is characterized by a high degree of fragmentation with over 5 million outlets, 96 percent of whom are very small with an area of less than 50 m2.

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The retail universe doubled between 1986 and 2006 and the number of outlets per 1000 people at an All India Level increased from 4.9 in 1988 to 14.8 in 2006. Because of their small size, the Indian Retailers have very little bargaining power with manufacturers and perform only a few of the flows in marketing channels unlike in the case of retailers in developed countries. The corner grocer or the 'Kirana' Store is a key element in the retail in India due to the housewifes unwillingness to go long distances for purchasing daily needs. Although convenience and merchandise were the two most important reasons for choosing a store, the choice interia

varied across product categories. Convenience was indicated by consumers as the most important reason in the choice of groceries and fruit outlets, chemists and life style items while merchandise was indicated as the most important in durables, books and apparel. In recent years, there has been a slow spread of retail chains in some formats like super markets, department stores, malls and discount stores. Factors facilitating the spread of chains are the availability of quality products at lower prices, improved shopping standards, convenient shopping and display and blending of shopping with entertainment and the entry to industrial houses like Goenkas and Tatas into retailing. Thailand is one of the countries whose economy has developed rapidly in recent years. There has been a tradition of independently owned outlets called shop houses. These outlets are run by families, with the shop located on the ground floor and the family's living quarters on upper floors. Thailand's first departmental store opened in 1956 and the first shopping centre in (1967). Discounts and super stores were introduced in 1989. However, the presence of super market format has been low due to ingrained habit of buying fresh produce. Speciality stores were just emerging in Thailand in mid 1990s. Another country where the development of the retail sector has also followed an interesting path is Brazil. The concept of self service in shopping was introduced to Brazil in 1953 but until 1972, there was no foreign influence in the Brazilian retail sector. Food retailing especially, contained to be Brazilian owned and managed although international innovations were adopted. The number of intermediaries in marketing channels is decreasing as the operation of wholesalers is under threat from the direct contact between retailers and suppliers, although few
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specialized distributors have emerged who provide value added services such as distribution of frozen and chilled food. TYPES OF RETAIL STORES It is in retailing that very drastic changes have occurred during the last two decades. Some institutions have disappeared whereas newer ones have been added. This process of deletion / addition still continues in newer forms. There are large-scale retailing shops together with very small units, both working simultaneously. They have from hawkers and peddlers, who have no

permanent place, to well-organized, settled retail shops like chain stores, departmental stores, etc. The institutions carrying on the retail business can be classified as under: Instore-Retaling

Department Stores Super Markets Discount Houses Chain Stores or Multiple Shops

Non-Store Retailing Direct Selling Telemarketing Online Retailing Automatic vending Direct Marketing.

Franchising

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Instore-Retail Department Stores These are large scale retail stores selling under one roof and one control a variety of goods divided into different departments, each of which specializes in an individual merchandise. Converse is of the opinion that a department store is a retail shop handling several classes of goods including fast moving consumer goods, each class being separated from others in management, accounting and location. It is viewed by Clarke as that type of retail institution

which handle a wide verity of merchandise under one roof which the merchandise grouped into well-defined departments which is centrally controlled and which caters primarily to women shoppers. Thus a department store is a retailing business unit that handles a wide variety of shopping and specialty goods and is organized into separate departments for purposes of sales promotion, accounting control and store operation. Recent trends are to add departments for automotive, recreational and sports equipment, as well a services such as insurance, travel advice and income-tax preparation. Department stores are distinctive in that they usually are oriented towards service. They are usually shopping centers. Classification of Department Stores These stores may be classified either according to ownership or income groups to which they appeal. a) On the basis of ownership these are: (i) The independent; (ii) The ownership group; and (iii) Chain department Stores. Independent stores are owned by a financial interest which does not own other similar stores Ownership group stores are those stores which were formerly dependent but now have been combined. Chain department stores are those stores which are centrally owned and operated. b) On the basis of income groups, These stores cater to the middle and high income groups. They usually handle good quality merchandise and offer maximum service to the customers. Other stores cater to the needs of the lower income group people.

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c) Sometimes there is also to be found what are called leased department stores. Although it appears to most customers that all departments in a department store are owned and operated by the store that is not always the case. The operations of certain departments are sometimes turned over to leases and such departments are called leased departments. Characteristic Features of Department Stores: These are integrated stores performing operations in addition to other retail stores such as wholesaling.

 Goods are divided into different classes with different locations and management within the store itself. These stores are distinguished by the nature of goods they self and not by the varieties they keep for example, drug and variety stores carry a wide variety of goods. The store is a horizontally integrated institution. It brings together under one roof a range of merchandise offerings comparable to the combined offerings of many stores specializing in single or fewer merchandise lines. Merits of Department Stores Large department stores buy in large quantities and receive special concession or discount in their purchases. Many of them purchase direct form manufactures and hence, middleman's charges are eliminated. Department stores are in a position to pay cash on all or most of their purchases and this gives them an additional advantage of picking up quality goods at cheaper rates and at the same time stocking the latest style and fads. Customers can do all their purchases under one roof and it appeals to people of all walks of life. The organization is too large to provide expert supervision of various departments for the adoption of a liberal credit and delivery service for large-scale advertising. When customers enter the store to deal with one department they are frequently induced by the advertisement which the display of goods offers to make purchases in other departments as well.

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Demerits of Department Stores The cost of doing business is very high due to heavy overhead expenses. Because of their location in a central shopping area they are of not much advantage to the public because goods required at short notice are always purchased from the nearest traders. There is lack of personal touch and personal supervision which is to be found in single line.

 When hired diligence is substituted for the diligence of ownership, loss and leaks are likely to occur. Many customers abuse the liberal services extended and take advantage of the policy of the 'customers is always right'. The type of salesmanship found in many stores is very poor because of low payments and lack of supervision. Super Markets These are large, self service stores that carry a broad and complete line of food and non-food products. They have central check out facilities. Kotler defines supermarket as 'a departmentalized retail establishment having four basic departments viz. self-service grocery, meat, produce and diary plus other household departments, and doing a maximum business. It may be entirely owner operated or have some of the departments leased on a concession basis.' Characteristic Features of Super Markets They are usually located in or near primary or secondary shopping areas but always in a place where parking facilities are available. They use mass displays of merchandise. They normally operate as cash and carry store. They make their appeal on the basis of low price, wide selection of merchandise, nationally advertised brands and convenient parking. They operate largely on a self-service basis with a minimum number of customer services.
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Merits of supermarkets Super markets have the advantage of convenient shopping, permitting the buyer to purchase all his requirements at one place. Super markets also stock a wide variety of items. These markets can sell at low prices because of their limited service feature, combined with large buying power and the willingness to take low percent of profit margins.

 Shopping time is considerably reduced.

Demerits of Supermarkets The large and extensive area required for a super market is not available cheaply in important places. The products which require explanation for their proper use can not be dealt in through the super markets. Customer services are practically absent. Another limitation of the super market is the exorbitantly high administrative expenses.

Discount Houses These are large stores, freely open to the public and advertising widely. They are self-service and general merchandising stores. They carry a wide assortment of products of well known brands, appliances, house wares, home furnishings, sporting goods, clothing, toy and automotive services. They complete on low price basis and operate on a relatively low mark-up and a minimum number of customer service. They range from small open showroom to catalogue type order offices to full line limited service, and promotional stores. They buy their merchandise stocks both from wholesale distributors and directly from manufacturers. Characteristics Features of Discount Houses It is not one market but a collection of markets for several distinct and different instruments. However, the different/distinct markets are inter-related.

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Though the market has a large and diverse number of participants, it is predominantly a wholesale market where trades involve large amounts of money and therefore skills are paramount. Even though the bulk of the trades are contracted verbally via the phone, traders do not renege on commitments made giving rise to the motto of the money market which is "My word is my bond".

Merits of Discount Houses It is cheaper for one thing, it would more sensible for people/ family's who are on budgets. In addition if you were a student it would also be a good option due to the fact that if you were living with more people in a household then all the house members could put money in together and shop at a discount store once a week. Demerits of Discount Houses Dont always have the choice that would be preferred, and produce wouldn't always be satisfactory to most consumer needs. And if you were shopping for a family then these shops wouldn't be ideal. Chain Stores or Multiple Shops A chain store system consists of four or more stores which carry the same kind of merchandise are centrally owned and managed and usually are supplied from one or more central warehouses. A chain store is one of the retail units in chain store system. Chains have been interpreted as a group of two or more reasonably similar stores in the same kind or field of business under one ownership and management, merchandised wholly or largely from central merchandising head quarters and supplied from the manufacturer or orders placed by the central buyers. Characteristics Features of Chain Stores One or more units may constitute a chain. They are centrally owned with some degree of centralized control of operation.
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They are horizontally 'integrated' that is, they operate multiple stores. With addition of each new store, the system extends the reach to another group of customers. Many stores are also 'vertically integrated'. They maintain large distribution centres where they buy from producers, do their own warehousing and then distribute their own stores.

Merits of chain stores or multiple shops Lower selling prices. This is mainly possible due to economy in buying operation. Economy and advertising. Common advertisements covering all the units are feasible and this reduces advertisement expenditure.

Ability to spread risks. Unlike the department store the principle here is not to "lay all the eggs in one basket". By trail and error, a unit sustaining losses may be shifted to some other place or even dropped. There is flexibility in working. Since it works only on cash basis, bad debts as well as detailed accounting processes are avoided. Central and costly locations are not essential. Demerits of chain stores or multiple shops Lower price is a false claim. According to Stanton "Price Comparison is not possible, as such stores are handling only limited items". Inflexible in practice. Multiple shops deal in standardized products only-which creates inflexibility in offering wide varieties. Personnel Problems. Being a large organization, it is always susceptible to problems associated with large scale business. Poor public image. Various consumer services such as credit facility, door delivery etc. are completely absent in chain store. The present day consumers prefer to have more services than quality in addition to desiring low prices.

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Non-Store Retailing A large majority - about - 80% - of retail transactions are made in stores. However, a growing volume of sales is taking place away from stores. Retailing activities resulting in transactions that occur away from a physical store are called non-store retailing. It is estimated that non-store sales account for almost 20% of total retail trade.

Following are the five types of non store retailing: direct selling, tele marketing, online retailing, automatic vending and direct marketing. Each type may be used not just by retailers but by other types of organizations as well. Direct Selling In the context of retailing, direct selling is defined as personal contact between a sales person and a consumer away from a retail store. This type of retailing has also been called in home selling. Annual volume of direct selling in India is growing fast from the beginning of the 21st century.

Like other forms of non-store retailing, direct selling is utilized in most countries. It is particularly widespread in Japan, which accounts for about 35% of the worldwide volume of direct selling. The U.S. represents almost 30% of the total and all other countries the rest. The two kinds of direct selling are door to door and party plan. There are many well known direct-selling companies including Amway, Creative memories and Excel communications. Diverse products are marketed through direct selling. This channel is particularly well suited for products that require extensive demonstration. Merits of Direct Selling Consumers have the opportunity to buy at home or at another convenient non-store location that provides the opportunity for personal contact with a sales person. For the seller, direct selling offers the boldest method of trying to persuade ultimate consumers to make a purchase. The seller takes the product to the shoppers home or work place and demonstrates them for the consumer.

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Demerits of Direct Selling Sales commissions run as high as 40 to 50% of the retail price; of course, they are paid only when a sale is made.

 Recruiting sales people - most of whom are part timers are difficult tasks, iii. Some sales representatives use high pressure tactics or are fradulent. Telemarketing Sometimes called telephone selling, telemarketing refers to a sales person initiating contact with a shopper and closing a sale over the telephone. Telemarketing many entail cold canvassing from the phone directory. Many products that can be bought without being seen are sold over the telephone. Examples are pest control devices, magazine subscriptions, credit cards and cub memberships. Telemarketing is not problem free. Often encountering hostile people on the other end of the line and experiencing many more rejections than closed sales, few telephone sales representatives last

very long in the job. Further some telemarketers rely on questionable or unethical practices. For instance firms may place calls at almost any hour of the day or night. This tactic is criticised as violating consumers' right to privacy. To prevent this, some states have enacted rules to constrain telemarketers' activities. Despite these problems, telemarketing sales have increased in recent years. Fundamentally, some people appreciate the convenience of making a purchase by phone. Costs have been reduced by computers that automatically dial telephone number, even deliver a taped message and record information the buyer gives to complete the sale. The future of telemarketing is sure to be affected by the degree to which the problems above can be addressed and by the surge of online retailing. Characteristics Features of Telemarketing Telemarketing companies make their money by soliciting prospective customers via phone, mail and e-mail. While some corporations employ phone operators to legitimately keep in touch with
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customers, telemarketing fraud involves unsolicited contact made by individuals the call receiver has no prior business relationship with. Written communication schemes typically instruct a prospective customer to call a given phone number to hear more about a so-called deal or special

offer. Fraudulent phone calls typically misrepresent products or services or use other techniques to farm financial information. The following features of telemarketing are given below: Uninitiated Contact If you receive a telephone call, letter or e-mail from an individual or an organization you are not familiar with and have not done business with, it could be a telemarketing scheme. To verify the legitimacy of the call, ask for the persons name, the company name and a call-back number. Unscrupulous callers will be unlikely to provide this information. Over Familiarity One characteristic of a telemarketing scheme is that the caller will be overly friendly, possibly even calling the victim by name or inferring previous interaction. A common scenario is one in which a telemarketer says he is calling to request that you match your donation from last year in giving to a charity. The goal of this ploy is to make the victim believe she is speaking to a representative of an organization she has supported in the past. Prize Winning A popular telemarketing scheme is one in which the call recipient is told she won a prize or a contest and must provide a credit card number to cover the cost of taxes, shipping and handling. This practice is against the law and should be reported to the Federal Bureau of Investigation or a state Attorney Generals office. Vague Identity If you ask a telemarketer to elaborate on the name of his company, its location or business license number and dont get an immediate response, it could be a scheme. Legitimate companies will provide potential customers with all of its information. Beware of companies that provide these details but meet other scam-like characteristics. Ask for time to verify information before considering an offer.
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Discourage Investigation A caller who refuses to send you information about his offer in writing through the mail or tells you theres no need to check on the company background with a consumer advocate agency is likely perpetrating a telemarketing scheme.

 Too Good to Be True Any offer that seems too good to be true usually is. Telemarketing schemes typically extend offers that seem exceptionally good: a free vacation, a lifetime supply of a product or a miracle drug. Merits of Telemarketing It involves lower overhead costs than employing an outside sales force, saving small businesses money. Outbound telemarketing is that you can expand your business by selling to customers in other sales territories, whether locally or nationally. Telemarketing also offers a way to follow up with existing customers. Staying in contact with your customers gives you an opportunity to find out more about the clients needs and build a better relationship. It improves customer satisfaction can have a significant impact on the profitability of your business. Demerits of Telemarketing Despite the sales value that telemarketing offers, many consumers associate it with a negative image. Customer reactions are not always friendly, as bad experiences with telemarketers contribute to the negative stereotype. Some customers find the unwanted calls annoying or are wary of scams. The customer lists are expensive to purchase and may not be up to date. Often, they do not result in a high number of actual sales. In many cases, the lists include the names of people who do not want unsolicited sales calls.

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Worthwhile telemarketing lists have the names of customers who have demographic characteristics that closely match those of your target market or who have previously purchased products similar to what your business offers.

Online Retailing When a firm uses its website to offer products for sale and then individuals or organisations use their computers to make purchases from this company, the parties have engaged in electronic transactions (also called on line selling or internet marketing). Many electronic transactions involve two businesses which focuses on sales by firms to ultimate consumers. Thus online retailing is one which consists of electronic transactions in which the purchaser is an ultimate consumer. Online retailing is being carried out only by a rapidly increasing number of new firms, such as Busy.com, Pets Mart and CD Now.com. Some websites feature broad assortments, especially those launched by general merchandise retailers such as Wai-mart and Target. Some Internet only firms, notably Amazon.com are using various methods to broaden their offerings. Whatever their differences, e-retailers are likely to share an attribute. They are unprofitable or best, barely profitable. Of course, there are substantial costs in establishing an online operation. Aggressive efforts to attract shoppers and retain customers through extensive advertising and low prices are also expensive. The substantial losses racked by online enterprises used to be accepted, perhaps even encouraged by investors and analysts. The rationale was that all available funds should be used to gain a foothold in this growing market. Despite these challenges, online retailing is expected to grow, rapidly and significantly for the foreseeable future. Online sales represented about 1% of retail spending in 2005, but one research firm estimates that consumer purchases on the Internet with triple by the year 2010.

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Characteristics Features of Online Retailing They are focused on the holiday shopping season. They challenges may be even more pressing, because many believe that the first holiday shoppers began making their online purchases.

 In-store pickup and delivery from local warehouses that gave consumers last-minute purchase options Delivery guarantees-stemming from retailers' operational improvements-that allowed shoppers to place some orders as late as Christmas week and receive delivery by Christmas Eve using standard shipping The ability to send gift certificates (an increasingly popular online and offline holiday gift) instantly via email from websites A shortage of products available offline, in particular Apple's iPod, resulting in lastminute online purchases of these products Greater online shopping via broadband connections from home Merits of Online Retailing The consumer can quickly access a wide variety of Web sites, shop 24/7, compare prices, get much more information about products than can be gotten offline. Learn how other consumers rate products. Demerits of Online Retailing They want to touch certain merchandise such as clothing before they buy (although clear pictures and descriptions address this). They often have to pay for shipping (although some companies pay for shipping). They feel that returning a product can be a hassle (although online retailers are making improvements in this area). Automatic vending The sale of products through a machine with no personal contact between buyer and seller is called automatic vending. The appeal of automatic vending is convenient purchase. Products sold by automatic vending are usually well-known presold brands with a high rate of turnover. The large majority of automatic vending sales comes from the "4 c's" : cold drinks, coffee, candy and cigarettes.
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Vending machines can expand a firm's market by reaching customers where and when they cannot come to a store. Thus vending equipment is found almost everywhere, particularly in schools, work places and public facilities. Automatic vending has high operating costs because

of the need to replenish inventories frequently. The machines also require maintenance and repairs. The outlook for automatic vending is uncertain. The difficulties mentioned above may hinder future growth. Further, occasional vending-related scams may scare some entrepreneurs away from this business. Vending innovations give reason for some optimism. Debit cards that can be used at vending machines are becoming more common. When this card is inserted into the machine, the purchase amount is deducted from the credit balance. Technological advances also allow operators to monitor vending machines from a distance, thereby reducing the number of out-of-stock or outof-order machines. Characteristics Features of Automatic vending Dispenses different types of items. Transaction is carried out between customer and machine. Product get by the inserted of currency or credit card. Merits of Automatic vending Using a vending machine for doing business is found to be accompanied by mixed fortunes in terms of benefits and disadvantages. There are two parties normally involved in the vending machine procedures, the user of the products and the owner of the machine. These people are said to experience varied degrees of benefits and shortfalls of the technology. These machines have since been used to serve a wide clientele with a variety of products handling from green grocery to processed products. A typical example is a snack vending machine that can be used for buying and selling of different kinds of snacks. Drinks of all kinds can now be dispensed through this technology making the world a more convenient place in terms of item purchasing. The whole process is automated such that one can be able to use it when the transaction is done in the correct way according to how the machine is programmed. Some accept cash
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 in currency forms only while others accept both cash and credit cards for electronic transactions. On the side of the customer using the machine, there is a wide range of advantages of using this service being compounded on the issue of convenience. Vending machines give the clients a free choice to purchase products at any time of the day. One can shop for his or her intended product on a 24 hour, throughout the year. Diversity in terms of the products that a vending machine can handle is another advantage that this technology in business has brought. A wide range of products can be sold using the machine as fruits, beverages, drinks, and cigarettes among other products. This concept is also applied to some service provision industries like air drier, play stations and other public utility practices. Most vending machines are stationed at strategic points which make it convenient and time saving because of the surety of getting what you want. It is a one time investment on the side of the owner who doesn't need a lot of running expenses to operate. Reduction of overhead costs by not hiring of staff only increases the profit margin for the owner making it a success bound venture. The machine can always be moved to other areas if need arises and it will continue delivering the services as usual. Demerits of Automatic vending There are disadvantages of using the vending machine for both the owner and the customers. One of the shortfalls is that this technology gives no provision for bargaining and therefore fixed prices apply and this may be unfriendly both to the customer and the owner. Fraud cases are also common in this kind of business by customers who formulate means of hacking into the system of the machine to dispense products. Vandalism of the machine by unruly groups or jealous competitors and heavy taxation levied on the sites of location may be a discouragement for this capital intensive investment. There may be huge losses to the investor who faces cases of destruction of the machine or faulty programming like a continuous dispensing of product due to technical errors.

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It is therefore important to be conversant with all the characteristics of the vending machine technology for business. Direct Marketing There are no consumers on the exact nature of direct marketing. In effect, it comprises all types of non-store retailing other than direct selling, telemarketing, automatic vending and online retailing. In the context of retailing, it has been defined as direct marketing as using print or broadcast advertising to contact consumers who in turn, buy products without visiting a retail store. Direct marketers contact consumers through one or more of the following media: radio, TV, newspapers, magazines, catalogs and mailing (direct mail). Consumer order by telephone or mail. Direct marketers can be classified as either general - merchandise firms, which offer a variety of product lines, or specialty firms which carry - only one or two lines such as books or fresh fruit. Characteristics Features of Direct Marketing Direct mail - in which firms mail letters, brochures and even product samples to consumers, and ask them to purchase by mail or telephone. Catalog retailing - in which companies mail catalogs to consumers or make them available at retail stores. Televised shopping - in which various categories of products are promoted on dedicated TV channels and through infomercials, which are TV commercials that run for 30 minutes or even longer on an entertainment channel. Merits of Direct Marketing Direct marketing provides shopping convenience. Direct marketers enjoy comparatively low operating expenses because they do not have the overhead of physical stores.

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Demerits of Direct Marketing Consumers must place orders without seeing or touching the actual merchandise. To off-set this, direct marketers must offer liberal return policies. Furthermore, catalogs and to some extent, direct mail pieces are costly and must be prepared long before they are issued. Price changes and new products can be announced only through supplementary catalogs or brochures. Direct marketing's future is difficult to forecast, given the rise of the Internet. Franchising A franchising operation is legal contractual relationship between a franchiser (the company offering the franchise) and the franchisee (the individual who will own the business). The terms and conditions of the contract vary widely but usually the franchiser offers to maintain a continuing interest in the business of the franchisee in such areas as the site selection, location, management, training, financing, marketing, record-keeping and promotion. He also offers the use of a trade name; store motif standardized operating procedure and a prescribed territory. In return the franchisee agrees to operate under conditions set forth by the franchiser. Characteristics Features of Franchising The characteristics or features of a franchise are mentioned as follows: Well established business A franchise is a readymade and well established business that needs expansion. It is a ready form of business seeking expansion in new market areas with the help of a local representative. Needs limited investment As franchise business is already set up by the franchisor, the initial investment required by the franchisee to enter and establish is relatively low. Easy entry in new markets As the goodwill and reputation is already set up in other countries, franchisor does not require more efforts to enter in new markets. He is easily accepted in the new markets. Business has large establishments Franchise has large establishments around the world and operates through a network of local representatives in different market areas.

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Helps in diverting business risks By establishing outlets in different parts of the world franchise helps the owner of the firm to diversify his business risks. Results in a large turnover Franchise results in large volume of sales. Society is benefited by the management of franchisor and service skills of franchisee. Brand name and bumper publicity results in a large turnover. Separates labour and specialisation Franchise results in division of labour and specialisation. The franchisor concentrates on production, whereas franchisee looks after distribution and service at a unit level. The advantages of division of labour and specialization benefit both. Allows use of brand name and trademark In franchise selling the franchisor allows the franchisee to use his brand name, trademark, service mark and management skills for developing and expanding franchise business. Business is based on mutual agreement Franchise business is based on mutual agreement or contract setting out terms and conditions for franchising. Agreement is based on the understanding between franchisor and franchisee. To avoid disputes, agreement should be drafted in a detailed manner. Success needs a long-term relationship For the successful functioning of a franchise business, both franchisor and franchisee have to remain committed in their long-term relationship, only then business will be mutually rewarding. Strong franchisee relationship enables the franchisor to sell a franchise more effectively, introduce needed changes into the system very easily and motivate franchisee and their managers to provide a consistent level of products and services to their customers. Merits of Franchising Capitalized Expansion Expansion requires the investment of capital and resources that for many successful business owners is limited and, sometimes, difficult to raise. Franchising serves as a source for the capitalized expansion of a successful business. Rather than borrowing funds from lenders, franchisees invest their own funds to expand your business.

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Continuing Revenue Streams Successful franchisors benefit from continuing royalties that are, typically, based upon a percentage of franchisee gross sales and paid on a monthly basis. Brand Development The Multi-unit expansion associated with franchising serves to supplement and expand the value of your brand. Franchisee contributions to local and regional advertising further serve to expand brand recognition. Economies of Scale If managed properly the multi-unit expansion associated with franchising results in increased volume purchases and leverage with business suppliers and vendors. Managerial Talent Franchisee owners who have invested their own capital and savings - typically serve as better managers and operators than paid employees who do not possess a vested interest in the business. Demerits of Franchising Established Brand Compared to establishing a new business, your franchised business - from day one - will possess an established brand recognized by consumers; Established Business Systems This business will benefit from established business systems and procedures that have been tested and proven in the marketplace. Training and Support This business will benefit from the franchisors continued training and support. This includes initial training and support that should be ongoing and extend to your business operations and the continued development of the products or services that you will be offering.

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SOME OTHER TYPES OF RETAIL

Organized Retail Unorganized Retail

Organized retail is nothing but a retail place all the items are segregated and brought under one roof, unlike the unorganized retail where there are different things are sold in different shops. It also aims to bring maximum of different brands making the same type of product together. 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 mom and pop store, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. Remarks: 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. Differentiate between organized retail and unorganized retail
Organized retailing refers to trading activities undertaken by licensed retailers, that is,

those who are registered for sales tax, income tax, etc. These include the corporatebacked hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, includes the traditional formats of low-cost retailing, for example, the local kirana shops, owner operated general stores, paan/beedi shops, convenience stores, handcart and pavement vendors, etc.

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Unorganized retail sector is vastly spread out in India and is quite an old concept but organized retail sector is in its infancy. The self-organized sector is mainly characterized by the lari-galla vendors, also known as mobile supermarket, seen in every Indian by-lane. It is difficult to track measure and analyse. But they do know their business these lowest cost retailers can be found everywhere from village by-lanes to where big malls are situated. As far as location is concerned, these retailers have succeeded beyond all doubt. They have neither village nor city-wide ambitions nor plans their aim is simply a long walk down the end of the next lane. Organized retail has not penetrated and will not penetrate rural India for obvious reasons it is just unviable. It is only the urban areas that organized retail is slowly but not steadily growing in. Organized sector usually denotes unionization. However, in the Indian context organized sector is differentiated from unorganized sector in terms of employment status. The former offers regular contractual hired employment along with social security benefits and hence implies better service conditions for its employees as opposed to their counterparts in the unorganized sector. Retail in India used to fall largely into the unorganized category. However, recently there has been the emergence of organized sector within retail. Impact of Organized Retail On Unorganized Retailers Unorganized retailers in the vicinity of organized retailers experienced a decline in their volume of business and profit in the initial years after the entry of large organized retailers. The adverse effect on sales and profit weakens over time. There was no evidence of a decline in overall employment in the unorganized sector as a result of the entry of organized retailers. There is some decline in employment in the North and West regions which, however, also weakens over time.

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The rate of closure of unorganized retail shops in gross terms is found to be 4.2 per cent per annum which is much lower than the international rate of closure of small businesses. The rate of closure on account of competition from organized retail is lower still at 1.7 per cent per annum. There is competitive response from traditional retailers through improved business practices and technology upgradation. A majority of unorganized retailers is keen to stay in the business and compete, while also wanting the next generation to continue likewise. Small retailers have been extending more credit to attract and retain customers. However, only 12 per cent of unorganized retailers have access to institutional credit and 37 per cent felt the need for better access to commercial bank credit. Most unorganized retailers are committed to remaining independent and barely 10 per cent preferred to become franchisees of organized retailers. On Consumers Consumers have definitely gained from organized retail on multiple counts. Overall consumer spending has increased with the entry of the organized retail. While all income groups saved through organized retail purchases, the survey revealed that lower income consumers saved more. Thus, organized retail is relatively more beneficial to the less well-off consumers. Proximity is a major comparative advantage of unorganized outlets. Unorganized retailers have significant competitive strengths that include consumer goodwill, credit sales, amenability to bargaining, ability to sell loose items, convenient timings, and home delivery.

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On Intermediaries The study did not find any evidence so far of adverse impact of organized retail on intermediaries. There is, however, some adverse impact on turnover and profit of intermediaries dealing in products such as, fruit, vegetables, and apparel. Over two-thirds of the intermediaries plan to expand their businesses in response to increased business opportunities opened by the expansion of retail. Only 22 per cent do not want the next generation to enter the same business.

On Farmers Farmers benefit significantly from the option of direct sales to organized retailers. Average price realization for cauliflower farmers selling directly to organized retail is about 25 per cent higher than their proceeds from sale to regulated government mandi. Profit realization for farmers selling directly to organized retailers is about 60 per cent higher than that received from selling in the mandi The difference is even larger when the amount charged by the commission agent (usually 10 per cent of sale price) in the mandi is taken into account. On Manufacturers Large manufacturers have started feeling the competitive impact of organized retail through price and payment pressures. Manufacturers have responded through building and reinforcing their brand strength increasing their own retail presence, adopting small retailers, and setting up dedicated teams to deal with modern retailers. Entry of organized retail is transforming the logistics industry. This will create significant positive externalities across the economy. Small manufacturers did not report any significant impact of organized retail.

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RETAILING 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 be US$ 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 as IKEA, 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 welcomed by economists and the markets, however has caused protests and an upheaval in India's central government's
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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. SCENARIO OF RETAILING IN INDIA Retailing is the most active and attractive sector of last decade. While the retailing industry itself has been present since ages in our country, it is only the recent past that it has witnessed so much dynamism. The emergence of retailing in India has more to do with the increased purchasing power of buyers, especially post-liberalization, increase in product variety, and increase in economies of scale, with the aid of modern supply and distributions solution. Indian retailing today is at an interesting crossroads. The retail sales are at the highest point in history and new technologies are improving retail productivity. though there are many opportunities to start a new retail business, retailers are facing numerous challenges. which are as follows: KEY CHALLENGES: LOCATION: "Right Place, Right choice" Location is the most important ingredient for any business that relies on customers, and is typically the prime consideration in a customers store choice. Locations decisions are harder to change because retailers have to either make sustainable investments to buy and develop real estate or commit to long term lease with developers. When formulating decision about where to locate, the retailer must refer to the strategic plan: Investigate alternative trading areas. Determine the type of desirable store location Evaluate alternative specific store sites

MERCHANDISE: The primary goal of the most retailers is to sell the right kind of merchandise and nothing is more central to the strategic thrust of the retailing firm. Merchandising consists of activities involved in acquiring particular goods and services and making them available at a place, time and

quantity that enable the retailer to reach its goals. Merchandising is perhaps, the most important function for any retail organization, as it decides what finally goes on shelf of the store.

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PRICING: Pricing is a crucial strategic variable due to its direct relationship with a firm's goal and its interaction with other retailing elements. The importance of pricing decisions is growing because today's customers are looking for good value when they buy merchandise and services. Price is the easiest and quickest variable to change. TARGET AUDIENCE: "Consumer the prime mover" "Consumer Pull", however, seems to be the most important driving factor behind the sustenance of the industry. The purchasing power of the customers has increased to a great extent, with the influencing the retail industry to a great extent, a variety of other factors also seem to fuel the retailing boom. SCALE OF OPERATIONS: Scale of operations includes all the supply chain activities, which are carried out in the business. It is one of the challenges that the Indian retailers are facing. The cost of business operations is very high in India. PRESENT INDIAN SCENARIO Unorganized market: Rs. 583,000 crores Organized market: Rs.5, 000 crores 5X growth in organized retailing between 2000-2005 Over 4,000 new modern Outlets in the last 3 years Over 5,000,000 sq. ft. of mall space under development The top 3 modern retailers control over 750,000 sq. ft. of retail space Over 400,000 shoppers walk through their doors every week

 Growth in organized retailing on par with expectations and projections of the last 5 Years: on course to touch Rs. 35,000 crores (US$ 7 Billion) or more by 2005-06 Major players: Food and grocery Fashion Food world
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Shoppers' Stop Vivek's Subhiksha Westside Planet M Nilgris Lifestyle Music World Adani- Rajiv's Pyramid Crossword Nirma-Radhey Globus Life spring Others

TRADITIONAL RETAIL SCENE IN INDIA India is the country having the most unorganized retail market. Traditionally the retail business is run by Mom & Pop having Shop in the front & house at the back. More than 99% retailers function in less than 500Sq.Ft of area. All the merchandise was purchased as per the test & vim and fancies of the proprietor also the pricing was done on ad hock basis or by seeing at the face of customer. Generally the accounts of trading & home are not maintained separately. Profits were accumulated in slow moving & non-moving stocks which were to become redundant or

consumed in-house. Thus profits were vanished without their knowledge. The Manufactures were to distribute goods through C & F agents to Distributors & Wholesalers. Retailers happen to source the merchandise from Wholesalers & reach to end-users. The merchandise price used to get inflated to a great extent till it reaches from Manufacturer to End-user. Selling prices were largely not controlled by Manufacturers. Branding was not an issue for majority of customers.

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More than 99% customers are price sensitive & not quality or Brand Sensitive at the same time they are Brand conscious also. Weekly Bazaar in many small tows was held & almost all the commodities were on the scene including livestock. Bargaining was the unwritten law of market. Educational qualification level of these retailers was always low. Hence market was controlled by handful of distributors &/or Wholesalers. Virtually there was only one format of retailing & that was mass retail. Retailer to consumer ratio was very low, for all the categories without exception. Varity in terms of quality, Styles were on regional basis, community based & truly very low range was available at any given single place. Almost all the purchases / (buying) by mass population was need oriented & next turn may be on festivals, Marriages, Birthdays & some specific occasions. Impulsive buying or consumption is restricted to food or vegetables etc. Having extra pair of trousers or Shirts or Casuals & Formals & leisure wear & sports wear & different pair of shoes for occasions is till date is a luxury for majority population except for those living in Metros. Purchasing power of Indian urban consumer is very low and that of Branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food, Jewellery, are slowly seeping into the lifeline of Indian City folks. However electronic & electrical home appliances do hold appropriate image into the minds of consumers. Brand name does matter in these white goods categories. In the coming times also majority of organized retailers will find it difficult to keep balance with rest of the unbranded retail market which is very huge. INDIAN RETAIL IS MOVING INTO SECOND GEAR FIRST GEAR: Create awareness

New retailers driving awareness High degree of fragmentation Real estate groups starting retail chains Consumer expecting 'value for money' as core value

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SECOND GEAR: Meet customer expectations Consumer-driven Emergence of pure retailers Retailers getting multi-locational and multi-format Global retailers evincing interest in India

THIRD GEAR: Back end management Category management Vendor partnership Stock turns Channel synchronization Consumer acquisition Customer relation's management

FOURTH GEAR: Consolidation Aggressive rollout Organized retail acquitting significant share Beginning of cross-border movement Mergers and acquisitions

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OBJECTIVES OF THE STUDY

To study the buying behaviour of Indian customers. And understand the present Indian Retail scenario with respect to emergence of big retail chains in most metros, mini metros and towns according to change in customer taste, preferences, lifestyle and spending patterns. To study the reasons for buying from the particular retail store. And understand the various factors such as price, quality, service, offers etc. which influence the customers for buying from the particular retail store.

To study the nature and trends in buying patterns of customers. Understanding the demographic segmentation and the respective buying patterns of the customers according to the latest trends in the market. Understanding the needs of customers in a diverse culture of a country like India, it is important to understand that the needs of the customers may differ from person to person and culture to culture.

 To provide recommendations to serve customers quickly, efficiently and conveniently. Due to the highly competitive and nearly saturated market, only those retail stores will survive in the long run which will provide better services quickly, efficiently and conveniently.

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LIMITATIONS OF THE STUDY

The dissertation has been completed in a short tenure and, therefore, there may have some inadequacy in compiling the dissertation work with under mentioned limitations: The project has some limitations because it is totally based on efforts of individuals. Peoples may be careless and may not give correct answer to the questions, because of many reasons. Certain unavoidable errors will come into the study like non-response error, hasty response, etc. Some of the respondents were not ready to fill the questionnaire. Some of the respondents might have got biased while filling up the questionnaire. Some of the consumers are unable to understand the questionnaire. Some consumers are not interested in filling questionnaire.

 The tendencies among the respondents to amplify or filter their responses under the testing conditions cannot be desired. Time constraint is another limitation of the study. Language is one of the worst problem, some of the consumers are unable to understand English.

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COMPANY PROFILE
About Spencers Spencer's Retail Limited (Spencer's) is a multi-format retailer, engaged in operating hypermarket and convenience store chains. The product portfolio of the company includes food and grocery, fruits and vegetables, electrical and electronics, home and office essentials, garments and fashion accessories, toys, personal care, music, books, sugar free, meat, chicken, fish, bakery, drinks, frozen foods and IT accessories. In addition to this, the company offers various services such as credit card, gift card and product replacement warranty. The company also operates specialty stores such as Food World, Health and Glow and Music World. It sells around 35,000 items and operates above 250 stores, of which 35 are large format stores, in 50 cities. Spencer's has retail space of over a million square feet. The company is a subsidiary of RPG Enterprises. Spencer's operates across India and is headquartered in Kolkata, India. Spencers Retail is a part of the RPG Companies that deals with food, apparel, fashion, electronics, lifestyle products, music and books. : It has retail footage of approximately 1 million square feet and over 220 Spencer's stores in 35 cities. It also offers services such as gift vouchers and easy loans in association with CitiFinancial Consumer Finance India Ltd. It consists of Spencers Hypermarkets, Spencers Super, Spencers Daily and Spencers Express.

Spencers Retail has won various awards, some of the recent ones being: Reid & Taylor, Bond with the Best, Retail Excellence Award in 2011; Images Excellence Award for Pioneering Retail in East at the East India Retail Summit Awards, 2011; Vineet Kapila CEO of Spencers Retail was awarded the Retail Icon of the Year, 2010. It was ranked number 3 among the Most Trusted Brands in Retail, in the Brand Equity AC Nielson Brand Survey, 2010. Also won the Sap Ace Award for Customer Excellence in 2010. Spencer's is a unique retail brand that has been focused on delivering humor and enjoyment to peoples' lives for over 60 years. SpencersOnline.com offers pop culture and novelty gifts for any and every purpose and occasion, including birthday gift ideas, bachelor and bachelorette party gifts, strobe lights, gag gifts, dorm decor, beer pong accessories, and much more.
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Spencer's knows funny. Funny thing, everyone knows Spencer's back from when they were a kid hanging out at the mall. Maybe you're not a kid anymore but you still like to laugh, need a gag gift or just wanna have fun Spencer's is the place. From fart machines to lava lamps, backlights, beer pong and bachelorette party stuff, Spencer's has funny stuff, cool stuff and a whole lot more. Need a rock in' birthday gift idea get it at Spencer's. From cheap gifts to great gifts, outrageous tees, funny tees and custom tees, you can get it all at Spencer's. Get gifts for dad, bro, and sis, even mom, along with all your BFFs, family, friends, and friends with benefits. Oh yea, don't forget to treat yourself you deserve a fun gift! Get the party started with great gifts and party decorations along with drinking games and gag gifts to jump start the laughs. Finally legal? Get great 21st birthday party gifts to celebrate. Planning a bachelorette party? Have a blast with bachelorette party shot glasses, tiaras and sashes find the best selection of bachelorette party gifts at Spencer's. Want a blowout bachelor party? Bring a blow-up doll or cook up some fun with the Boobie Cake Pan - the bachelor will enjoy his last meal before hitching up to the ball and chain! Just wanna have a party in your pants? Spencer's has sexy stuff designed to put you in the mood and keep it going all night long. Take a spin on the Carmen Electra dance pole or play around with fun sex toys and sex games it's all yours for the taking, 24 hours a day, seven days a week. The party never stops at Spencer's!

Pimp your room with cool decor from Spencer's - find black lights, disco balls, posters, even pole dancing kits and Playboy accessories to rock your crib! Drinking games, sex games, party games and more it's all fun and games, like recess for grown-ups at Spencer's. Spencer's find unique gifts, funny gifts, sexy gifts and goods so stylin' and sweet, there's no reason to go anywhere else. Check it out! Heritage: Since 1863, Spencers has been a part of the Indian retail landscape. At one time, the Spencers Empire stretched from Peshawar to Cochin, from Karachi to Chittagong, spanning the length and width of undivided India. Originally owned by a British gentleman yes, there was a Mr. Spencer (John William Spencer, to be precise) it acquired Indian ownership in the 1960s, and became part of the RPG Group in 1989.
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In 1995, RPG Enterprises, the flagship company of the RPG Group, launched Food world as a joint venture with Hong-Kong based Dairy Farm International. The joint venture, which operated supermarkets under the name Food world and hypermarkets under the name Giant, was terminated in 2006. RPG retained 48 of the 93 stores it owned. These were re-furbished and their launch under the brand name, Spencers, kicked off a new phase in both the history of the Spencers brand, and the retail in India. Since inception Spencers has been a consumer-centric brand, constantly innovating, pioneering formats, evolving over time but always keeping consumer needs and satisfaction center-stage. Back in 1920, we were the first grocery chain in India. In 1980, we became the first supermarket chain, and in 2001, we introduced India to the joys of hypermarket shopping. What has remained unchanged almost 150 years is the trust the Spencers brand evokes. To the consumer, it carries the promise of innovation, quality, and service; the confidence that they will always be able to find a Spencers at a convenient location; that it will have a pleasant ambience; and that it will offer a wide range of products at affordable prices. About the Founder

Rama Prasad Goenka is the Chairman Emeritus of the RPG group, a multi-sector Indian industrial conglomerate. Goenka was born in 1930 and attended the presidency college in his home town of Kolkata and hard ward university in the United States. He is currently an M.P. in the Rajya Sabha, or upper house, of the Indian parliament Goenka also holds the position of Chairman of the Board of Governors, international management institute and is a trustee of the Jawaharlal Nehru Memorial Fund, the Indira Gandhi Memorial Trust and the Rajiv Gandhi foundation. He is a former president of the FICCI and the immediate past Chairman of the Board of Governors of the Indian Institute of Technology in Kharagpur. Goenka has also been twice awarded the Order of the sacred treasure by the Emperor of Japan.

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Team of RPG Group: R.P Goenka Chairman Emeritus Harsh Goenka ... Chairman Sanjiv Goenk .. Vice Chairman S Banerjee President/Chief Executive Power Sector P.K Chowdhary .. President/Chief Executive Tyre Sector Subroto Chattopadhayay President/Chief Executive Entertainment Sector P.K Mohapatra President/CEO, Technology Sector Arvind Agrawal President/Chief Executive Corporate Development and HR Ramesh Chandak .. President/Chief Executive Transmission Sector P. Sampath . Group CFO Mission of Spencers Strives to exceed the aspirations of its customers for a healthy and fulfilling lifestyle by providing. The most innovative customer goods and delectable taste experience. The ultimate shopping experience.

 Unbeatable value. The next place away from home or office to relax and indulge themselves. Vision of Spencers To bulid Spencers as the most professionally managed retail business in the country through. Excellence in all operating process. Nurturing and facilitating a learning and growth culture. Buliding a unique retail expereience for the customers.

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Market Summary Spencer's Retail is the fastest-growing retail companies with approximately 2 million square feet of retail space and more than 400 stores in 65 cities. Products include food, apparel, electronics, lifestyle products, music, and books. Spencer's Retail is a division of RPG Enterprise, a business group with more than 20 companies in industries such as power, technology, retail, and entertainment. Established in 1979, RPG Enterprises has annual revenue of $3.25 billion. Differentiators In the Indian milieu, there are only two routes to survival discounting and differentiation. Most retailers choose to play the price game. We, however, preferred to focus instead on establishing ourselves as the preferred shopping destination for discerning young customers looking for a range of quality products that let them participate in a global lifestyle. Our brand positioning Makes Fine Living Affordable embodies this approach, delighting shoppers with the best products and services that enable a fine living at reasonable prices while providing them with a warm, friendly and knowledgeable retail environment.

The following characteristics distinguish the Spencers brand and create memorable 360 shopping experience for consumers. Products we offer the widest range of food and lifestyle (fashion, home, entertainment) brands, with a special expertise in food

Quality we lay a huge emphasis on all-round quality: in products, stores, service standards, and customer engagement programs and that too since our inception at 1863 Heritage we are Indias oldest retailer, with many firsts to our credit Multiple Formats from daily to weekly and specialty shopping, we fulfill every need and provide maximum convenience Promotions we seek to offer the right products at the right time at the right price, with promotions carefully designed to suit the buying cycle and shopping basket of the consumers Brand Imagery our stores and staff seek to make our customers feel right at home, being international, contemporary, accessible, empathetic and trusted
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Social Responsibility Spencers supports the right of all individuals to be free from slavery in the workplace. Spencer's abhors the practice of human trafficking and slavery and applauds efforts being made globally to eliminate this practice. Spencer's requires all of its suppliers to be compliant with all local and national laws governing slavery and human trafficking in countries in which they do business. By accepting a purchase order or contract, every supplier certifies that it conducts business pursuant to local and national laws related to employment and its failure to do so will be considered a breach of the contract. While it does not conduct its own audit of suppliers to confirm compliance with slavery and human trafficking laws, Spencer's does require that all domestic suppliers certify compliance with all employment laws and that all international suppliers be verified by an independent, third-party auditor to confirm the suppliers' compliance with all employment laws. Additionally, Spencer's has adopted a policy for its employees and contractors that set forth its expectations and standards with regard to the fair treatment of its employees. Spencer's policy specifically prohibits forced labor. Spencer's provides training on these standards for its employees and management.

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LITERATURE REVIEW
Leon Schiffman and Leslie Kanuk, Consumer Behavior (10th Edition):Consumer Behavior explores how the examination and application of consumer behavior is central to the planning, development, and implementation of marketing strategies. It includesIntroduction to the Consumer Research Process; Market Segmentation; Consumer Motivation; Personality and Consumer Behavior; Consumer Perception; Consumer Learning; Consumer Attitude Formation and Change; Communication and Consumer Behavior; The Family and Its Social Class Standing; Influence of Culture on Consumer Behavior; Subcultures and Consumer Behavior; Cross Cultural and Global Consumer Behavior; Diffusion of Innovations; Consumer Decision Making and Beyond; Consumers Social Responsibility and Green Marketing. With a strong understanding of market segmentation approach, this book helps me to know how the Internet has changed the way people obtain information about potential purchases and how technology is changing their lives as consumers.

Michael R. Solomon, Consumer Behavior:This book includes the discussion of why people buy things and explores how products, services, and consumption activities contribute to shape peoples social experiences. The ninth edition includes research in the ever-changing field of consumer behavior. This leading book on consumer behavior helps me to understand how our world is influenced by the action of marketers, and how products, services, and consumption contribute to the broader social world.

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S.L Gupta, Sumitra Pal, Consumer Behaviour An Indian Perspective Text and Cases:

This book contributes to the concept of consumer behavior towards the market. It provides 20 case studies and illustration from the Indian markets. This book provides different dimensions of consumer behaviour which helps me to a great extent in my survey. Beside this some practical examples given in this book are also enlightened my knowledge.

Nitu Saxena, Consumer Behaviour and Organised Retailing:

This book presents a holistic view of the Indian organized retail scenario while analyzing the reciprocal and mutually reinforcing impact of consumer behaviour on the organized retailing and the vice versa. Because of I am studying the changing behaviour of the consumers from unorganized retail to organized retail, the information provided by this book regarding the impact of the organized retail on consumer behaviour is very helpful to me.

S Ramesh Kumar, Consumer Behaviour and Branding:

This book covers the basic concept of consumer behavior with their implications on managing brands. It deals with issues like celebrity advertising, managing brand associations, cultural practices, consumer loyalty, etc. I have studied various implications of consumer behaviour on branding from this book.

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MAJUMDAR, RAMANUJ , CONSUMER BEHAVIOUR : INSIGHTS FROM INDIAN MARKET : Consumer Behaviour has always fascinated marketers all over the world. Rightly so, because it offers interesting insights into the working of the human mind in making purchasing decisions. For instance, why do consumers repeatedly purchase a particular brand or, in some cases, why do they switch from one product to another? In this compact, concise and profusely illustrated text, Professor Majumdar, with his rich and varied experience in Marketing, tries to provide interesting insights into some of these and other interesting questions about consumer behaviour. He gives a masterly analysis of the theory and practice of consumer behaviour and decision making and the factors that influence it.

The text helps me to understand different aspects of consumer psychology and consumer motivation, consumer perception, and consumer personality, how consumers behave in their social and cultural settings, the effect of personal factors, and the influence of reference groups

on consumer behavior , consumer decision making stages involved in brand choice, the postpurchase behaviour and, importantly, the six well-established models proposed by scholars on consumer behavior and the diversity of the Indian market and about the emerging patterns of consumer behaviour.

Jr., Joseph Hair, Robert Bush, David Ortinau, Marketing Research

This text embodies a process approach, introducing 11 step marketing research processes. It stresses the contemporary practice of marketing research by highlighting technological change, methodological innovation, global implications, and ethical issues. The text helps me to understand clearly the principles of marketing research and real-life examples.

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ARORA, RICHA, MAHANKALE, NITIN R. MARKETING RESEARCH The book begins with an overview of marketing research, the type and scope of, and stages in marketing research, organization of marketing research in India, and research plan its need, functions and types. Then it goes on to give a clear analysis of research design and its classification, descriptive and experimental research, as well as uses, methods and techniques in qualitative research. Besides, the book gives detailed description on marketing research process and attitude measurement, sampling methods and sample size determination, methods and techniques of data collection and data processing analysis. Finally, the book dwells on various statistical techniques, statistical packages, report writing, and different applications of marketing research in specific areas. This book gives me the knowledge about in depth analysis of identifying, gathering, analyzing and interpreting primary and secondary data.

HAWKINS,

DEL

I.,

TULL,

DONALD

S,

MARKETING

RESEARCH:

MEASUREMENT AND METHOD :This is an introductory text in marketing research. The sixth edition of this market-leader offers readers a comprehensive, direct, and accessible introduction to marketing research. Focusing on decisional research, this book covers the principles of each topic, and discusses ways of properly designing and implementing a research project. It enables readers to provide meaningful information that helps them identify, structure, and solve marketing problems. In this edition significant attention has been given to the rapidly expanding area of international marketing research. This increased emphasis is reflected in virtually every chapter. The book provides me knowledge Research Process and Research Design, sampling and data analysis, The Sampling Process. Sample Size Determination. Data Reduction and Estimation.. Ethical Issues in Marketing Research.

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Living Media India Limited, Business Today (Business Magazine) February, 2012: I have read a report on shopping in retail industry in Business Today , February ,2012. This report helps me a lot to identify the present trends in consumer behaviour when they go for shopping in any retail outlet in India.

Planman Media, 4Ps Business And Marketing , August, 2012 :

4Ps is Indias first and only truly global Business & Marketing magazine. It examines

global issues with an Indian lens, ranging from an analysis of advertising campaigns to emerging trends and practices in marketing and advertising. By reading the report on Organized Retail In India I came to know various changing parameters with respect to the changes in retail industry.

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RESEARCH METHODOLOGY
Research is a systematic method of finding solutions to problems. It is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining and/or expanding knowledge. There are different types of research. The basic ones are as follows: Descriptive versus Analytical: Descriptive research consists of surveys and fact-finding enquiries of different types. The main objective of descriptive research is describing the state of affairs as it prevails at the time of study. The term ex post facto research is quite often used for descriptive research studies in social sciences and business research. The most distinguishing feature of this method is that the researcher has no control over the variables here. He/she has to only report what is happening or what has happened. Majority of the ex post facto research projects are used for descriptive studies in which the researcher attempts to examine phenomena, such as the consumers preferences, frequency of purchases, shopping, etc. Despite the inability of the researchers to control the variables, ex post facto studies may also comprise attempts by them to discover the causes of the selected problem. The methods of research adopted in conducting descriptive research are survey

methods of all kinds, including correlation and comparative methods. Meanwhile in the Analytical research, the researcher has to use the already available facts or information, and analyze them to make a critical evaluation of the subject.

Applied versus Fundamental: Research can also be applied or fundamental in nature. An attempt to find a solution to an immediate problem encountered by a firm, an industry, a business organization, or the society is known as Applied Research. Researchers engaged in such researches aim at drawing certain conclusions confronting a concrete social or business problem.

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On the other hand, Fundamental Research mainly concerns generalizations and formulation of a theory. In other words, Gathering knowledge for knowledges sake is termed pure or basic research (Young in Kothari, 1988). Researches relating to pure mathematics or concerning some natural phenomenon are instances of Fundamental Research. Likewise, studies focusing on human behaviour also fall under the category of fundamental research. Thus, while the principal objective of applied research is to find a solution to some pressing practical problem, the objective of basic research is to find information with a broad base of application and add to the already existing organized body of scientific knowledge. Quantitative versus Qualitative: Quantitative research relates to aspects that can be quantified or can be expressed in terms of quantity. It involves the measurement of quantity or amount. The various available statistical and econometric methods are adopted for analysis in such research. Some such includes correlation, regressions and time series analysis. On the other hand, Qualitative research is concerned with qualitative phenomena, or more specifically, the aspects related to or involving quality or kind. For example, an important type of qualitative research is Motivation Research, which investigates into the reasons for human behaviour. The main aim of this type of research is discovering the underlying motives and desires of human beings by using in-depth interviews. The other techniques employed in such research are story completion tests, sentence completion tests, word association tests, and other

similar projective methods. Qualitative research is particularly significant in the context of behavioural sciences, which aim at discovering the underlying motives of human behaviour. Such research helps to analyze the various factors that motivate human beings to behave in a certain manner, besides contributing to an understanding of what makes individuals like or dislike a particular thing. However, it is worth noting that conducting qualitative research in practice is considerably a difficult task. Hence, while undertaking such research, seeking guidance from experienced expert researchers is important.
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Conceptual versus Empirical:

The research related to some abstract idea or theory is known as Conceptual Research. Generally, philosophers and thinkers use it for developing new concepts or for reinterpreting the existing ones. Empirical Research, on the other hand, exclusively relies on the observation or experience with hardly any regard for theory and system. Such research is data based, which often comes up with conclusions that can be verified through experiments or observation. Empirical research is also known as experimental type of research, in which it is important to first collect the facts and their sources, and actively take steps to stimulate the production of desired information. In this type of research, the researcher first formulates a working hypothesis, and then gathers sufficient facts to prove or disprove the stated hypothesis. He/she formulates the experimental design, which according to him/her would manipulate the variables, so as to obtain the desired information. This type of research is thus characterized by the researchers control over the variables under study. Empirical research is most appropriate when an attempt is made to prove that certain variables influence the other variables in some way. Therefore, the results obtained by using the experimental or empirical studies are considered to be the most powerful evidences for a given hypothesis.
Other Types of Research:

The remaining types of research are variations of one or more of the afore-mentioned methods. They vary in terms of the purpose of research, or the time required to complete it, or may be based on some other similar factor. On the basis of time, research may either be in the nature of one-time or longitudinal research. While the research is restricted to a single time-period in the

former case, it is conducted over several time-periods in the latter case. Depending upon the environment in which the research is to be conducted, it can also be laboratory research or fieldsetting research, or simulation research, besides being diagnostic or clinical in nature. Under such research, in-depth approaches or case study method may be employed to analyse the basic causal relations. These studies usually undertake a detailed in-depth analysis of the causes of certain events of interest, and use very small samples and sharp data collecting methods.

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The research may also be explanatory in nature. Formalized research studies consist of substantial structure and specific hypotheses to be verified. As regards historical research, sources like historical documents, remains, etc. are utilized to study past events or ideas. It also includes philosophy of persons and groups of the past or any remote point of time. Research has also been classified into decision-oriented and conclusion-oriented categories. The Decision-oriented research is always carried out as per the need of a decision maker and hence, the researcher has no freedom to conduct the research according to his/her own desires. On the other hand, in the case of Conclusion-oriented research, the researcher is free to choose the problem, redesign the enquiry as it progresses and even change conceptualization as he/she wishes to. Further, Operations research is a kind of decision-oriented research, because it is a scientific method of providing the departments, a quantitative basis for decision-making with respect to the activities under their purview.
Research Design:

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. A research design helps to decide upon issues like what, when, where, how much, by what means etc. with regard to an enquiry or a research study. There are different types of research designs. They may be broadly categorized as: Exploratory Research Design;

Descriptive and Diagnostic Research Design; and Hypothesis-Testing Research Design.

Exploratory Research Design: The Exploratory Research Design is known as formulative research design. The main objective of using such a research design is to formulate a research problem for an in-depth or more precise investigation, or for developing a working hypothesis from an operational aspect.
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The major purpose of such studies is the discovery of ideas and insights. Therefore, such a research design suitable for such a study should be flexible enough to provide opportunity for considering different dimensions of the problem under study. The in-built flexibility in research design is required as the initial research problem would be transformed into a more precise one in the exploratory study, which in turn may necessitate changes in the research procedure for collecting relevant data. Usually, the following three methods are considered in the context of a research design for such studies. They are (a) a survey of related literature; (b) experience survey; and (c) analysis of insight-stimulating instances. Descriptive and Diagnostic Research Design: A Descriptive Research Design is concerned with describing the characteristics of a particular individual or a group. Meanwhile, a diagnostic research design determines the frequency with which a variable occurs or its relationship with another variable. In other words, the study analyzing whether a certain variable is associated with another comprises a diagnostic research study. On the other hand, a study that is concerned with specific predictions or with the narration of facts and characteristics related to an individual, group or situation, are instances of descriptive research studies. Generally, most of the social research design falls under this category. As a research design, both the descriptive and diagnostic studies share common requirements, hence they are grouped together. However, the procedure to be used and the research design must be planned carefully. The research design must also make appropriate provision for protection against bias and thus maximize reliability, with due regard to the completion of the research study in an economical manner. The research design in such studies should be rigid and not flexible.

 Hypothesis-testing Research Design: Hypothesis-testing Research Designs are those in which the researcher tests the hypothesis of causal relationship between two or more variables. These studies require procedures that would not only decrease bias and enhance reliability, but also facilitate deriving inferences about the causality. Generally, experiments satisfy such requirements.
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Sample Design : A sample design is a finite plan for obtaining a sample from a given population. Sample designs may be classified into different categories based on two factors, namely, the representation basis and the element selection technique. Under the representation basis, the sample may be classified as: Non-probability sampling Probability sampling

Non-probability sampling Non-probability sampling is the sampling procedure that does not afford any basis for estimating the probability that each item in the population would have an equal chance of being included in the sample. Non-probability sampling is also known as deliberate sampling, judgment sampling and purposive sampling. Under this type of sampling, the items for the sample are deliberately chosen by the researcher; and his/her choice concerning the choice of items remains supreme. In other words, under non-probability sampling the researchers select a particular unit of the universe for forming a sample on the basis that the small number that is thus selected out of a huge one would be typical or representative of the whole population. For example, to study the economic conditions of people living in a state, a few towns or village may be purposively selected for an intensive study based on the principle that they are representative of the entire state. In such a case, the judgment of the researcher of the study assumes prime importance in this sampling design.

Quota Sampling:

Quota sampling is also an example of non-probability sampling. Under this sampling, the researchers simply assume quotas to be filled from different strata, with certain restrictions imposed on how they should be selected. This type of sampling is very convenient and is relatively less expensive. However, the samples selected using this method certainly do not satisfy the characteristics of random samples. They are essentially judgment samples and inferences drawn based on that would not be amenable to statistical treatment in a formal way.
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Probability sampling or Random Sampling Probability sampling is also known as choice sampling or random sampling. Under this sampling design, every item of the universe has an equal chance of being included in the sample. In a way, it is a lottery method under which individual units are selected from the whole group, not deliberately, but by using some mechanical process. Therefore, only chance would determine whether an item or the other would be included in the sample or not. The results obtained from probability or random sampling would be assured in terms of probability. That is, the researcher can measure the errors of estimation or the significance of results obtained from the random sample. This is the superiority of random sampling design over the deliberate sampling design. Random sampling satisfies the law of Statistical Regularity, according to which if on an average the sample chosen is random, then it would have the same composition and characteristics of the universe. This is the reason why the random sampling method is considered the best technique of choosing a representative sample. There are different types of random sampling method. They may be broadly categorized as: Systematic sampling: In some cases, the best way of sampling is to select every first item on a list. Sampling of this kind is called as systematic sampling. An element of randomness is introduced in this type of sampling by using random numbers to select the unit with which to start. For example, if a 10 per cent sample is required, the first item would be selected randomly from the first and thereafter every 10th item. In this kind of sampling, only the first unit is selected randomly, while rest of the units of the sample is chosen at fixed intervals.

 Stratified Sampling: When a population from which a sample is to be selected does not comprise a homogeneous group, stratified sampling technique is generally employed for obtaining a representative sample. Under stratified sampling, the population is divided into many sub-populations in such a manner that they are individually more homogeneous than the rest of the total population. Then, items are selected from each stratum to form a sample. As each stratum is more homogeneous than the
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remaining total population, the researcher is able to obtain a more precise estimate for each stratum and by estimating each of the component parts more accurately, he/she is able to obtain a better estimate of the whole. In sum, stratified sampling method yields more reliable and detailed information. Cluster Sampling: When the total area of research interest is large, a convenient way in which a sample can be selected is to divide the area into a number of smaller non-overlapping areas and then randomly selecting a number of such smaller areas. In the process, the ultimate sample would consist of all the units in these small areas or clusters. Thus in cluster sampling, the total population is subdivided into numerous relatively smaller subdivisions, which in themselves constitute clusters of still smaller units. And then, some of such clusters are randomly chosen for inclusion in the overall sample. Area Sampling: When clusters are in the form of some geographic subdivisions, then cluster sampling is termed as area sampling. That is, when the primary sampling unit represents a cluster of units based on geographic area, the cluster designs are distinguished as area sampling. The merits and demerits of cluster sampling are equally applicable to area sampling. Multi-stage Sampling:

A further development of the principle of cluster sampling is multi-stage sampling. When the researcher desires to investigate the working efficiency of nationalized banks in India and a sample of few banks is required for this purpose, the first stage would be to select large primary sampling unit like the states in the country. Next, certain districts may be selected and all banks interviewed in the chosen districts. This represents a two-stage sampling design, with the ultimate sampling units being clusters of districts.

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On the other hand, if instead of taking census of all banks within the selected districts, the researcher chooses certain towns and interviews all banks in it, this would represent three-stage sampling design. Again, if instead of taking a census of all banks within the selected towns, the researcher randomly selects sample banks from each selected town, then it represents a case of using a four-stage sampling plan. Thus, if the researcher selects randomly at all stages, then it is called as multi-stage random sampling design. Sampling with Probability Proportional to Size: When the case of cluster sampling units does not have exactly or approximately the same number of elements, it is better for the researcher to adopt a random selection process, where the probability of inclusion of each cluster in the sample tends to be proportional to the size of the cluster. For this, the number of elements in each cluster has to be listed, irrespective of the method used for ordering it. Then the researcher should systematically pick the required number of elements from the cumulative totals. The actual numbers thus chosen would not however reflect the individual elements, but would indicate as to which cluster and how many from them are to be chosen by using simple random sampling or systematic sampling. The outcome of such sampling is equivalent to that of simple random sample. The method is also less cumbersome and is also relatively less expensive. Thus, a researcher has to pass through various stages of conducting research once the problem of interest has been selected. Research methodology familiarizes a researcher with the complex

scientific methods of conducting research, which yield reliable results that are useful to policymakers, government, industries etc. in decision-making.

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RESEARCH METHODOLOGY USED FOR SURVEY :

Type of Research Design: Descriptive research design used for this survey. Sample Size: Number of the sampling units selected from the population is called the size of the sample. Sample of 120 respondents were obtained from the population coming to the SPENCERS HYPER at Mani Square mall, Kolkata. Sampling Procedure: The procedure adopted in the present study is Stratified Random Sampling . Methods of Data Collection: The datas were collected through Primary and secondary sources. Primary Sources: Primary data are in the form of raw material to which statistical methods are applied for the purpose of analysis and interpretations. The primary sources are discussion with consumers, datas collected through questionnaire and personal interview. Nature of Questions Asked: The questionnaire consists of multiple choices, rating and ranking questions.

Secondary Sources: Secondary datas are in the form of finished products as they have already been treated statistically in some form or other. The secondary data mainly consists of data and information collected from records, company websites and also discussion with the management of the organization. Secondary data was also collected from journals, magazines and books.. Method of data analysis and graphical representation: The data are presented through bar charts and tables.
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RESEARCH ANALYSIS AND INTERPRETATION

RESPONDENTS PROFILE

AGE (Years):

Particulars 18-25 25-35 35-50 50 and above Total

Number of Respondents 30 42 38 10 120

Percentage 25 35 32 8

Interpretation: The graph shows that the survey includes 25% consumers of age 18-25year, 35% consumers of age 25-35 year, 32% consumers of age 35-50 year and 8% consumers of age above 50 years. These different age groups are sampled for the favour of the survey.
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SEX:

Particulars Male Female Total

Number of Respondents 60 60 120

Percentage 50 50

Interpretation: The graph shows that there are 50% male consumers and 50% female consumers are selected for the purpose of survey.
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EDUCATION:

Particulars Under Graduate Graduation Post Graduation Professional Qualification Total

Number of Respondents 25 37 28 30 120

Percentage 21 31 23 25

Interpretation: The graph shows that 21% of the consumers are under graduate, 31% graduate, 23% post graduate, 25% have professional qualification.

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OCCUPATION:

Particulars Student Housewife Govt. Employees Private Employees Self Employed/ Businessman Total

Number of Respondents 25 38 10 20 27 120

Percentage 21 32 8 17 22

35% 30% 25% 20% 15% 10% 5% 0%

32% 21% 8% 22% 17%

Student

Housewife

Govt. Employees

Private Employees

Self Employed/ Businessman

Interpretation: The graph shows that 21% of the consumers are student, 32% are housewife, 8% govt. employees, 17% private employees and 22% of the consumers are self employed/ businessman.

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MONTHLY INCOME:

Particulars Less than Rs. 20,000 Between Rs.20,000 to Rs.40,000 Between Rs.40,000 to Rs.50,000 More than Rs. 50,000 Total

Number of Respondents 18 25 44 33 120

Percentage 15 21 37 27

Interpretation: The graph shows that the monthly income of 15% consumers are less than Rs. 20,000, for 21% consumers it is between Rs.20,000 to Rs.40,000, the monthly income of 37% consumers are between Rs.40,000 to Rs.50,000 and for 27% consumers it is more than Rs. 50,000.

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Where do you visit for your shopping needs?

Particulars Organized retail outlet Unorganized retail outlet Total

Number of Respondents 87 33 120

Percentage 73 27

Interpretation: The graph shows that 73% of the consumers visit organized retail outlet and 27% visit unorganized retail outlet for their shopping needs.
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How frequently do you purchase from this retail outlet ?

Particulars Twice in a week Fortnightly Monthly Total

Number of Respondents 22 61 37 120

Percentage 18 51 31

Interpretation: The graph shows that 18% of the consumers purchase twice in a week, 51% purchase fortnightly and 31% purchase on monthly basis from this retail outlet.

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How far you have to travel to go for purchasing ?

Particulars Less than 2 km 2 km 5 km 5 km 8 km More than 8 km Total

Number of Respondents 29 47 24 20 120

Percentage 24 39 20 17

Interpretation: The graph shows that 24% of the consumers have to travel less than 2 km, 39% have to travel 2 km 5 km, 20% travel 5 km 8 km and 17% have to travel more than 8 km.

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Do advertisement and promotion influence your shopping decision ?

Particulars Yes No Total

Number of Respondents 81 39 120

Percentage 68 32

Interpretation: The graph shows that 68% of the consumers are making their shopping decision by the influence of the advertisement and promotion and the rest of the consumers are not influenced by advertisement and promotion.

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Which form of advertisement do you think is most effective?

Particulars Print TV Radio Total

Number of Respondents 44 61 15 120

Percentage 37 51 12

Interpretation: The graph shows that 37% of the consumers think print is most effective, 51% think TV and only 12% of the consumers think radio is the most effective form of advertisement

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With whom you usually visit hyper ?

Particulars Friends Family Alone Total

Number of Respondents 47 61 12 120

Percentage 39 51 10

Interpretation: The graph shows that 39% of the respondents visit hyper with their friends, 51% visit with family and only 10% visit alone.

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Main purpose of visiting this hyper ?

Particulars For shopping For food For seeing a movie For window shopping Total

Number of Respondents 51 31 27 11 120

Percentage 42 27 22 9

Interpretation: The graph shows that 51% of the respondents visit hyper for shopping, 27% for food, 22% for seeing movie and 9% visit hyper for window shopping.

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What type of product you frequently purchase ?

Particulars Grocery material Dresses Accessories Electronic products Others Total

Number of Respondents 49 27 15 25 4 120

Percentage 41 22 13 21 3

Interpretation: The graph shows that 41% of the consumers purchase grocery material, 22% purchase dresses, 13% purchase accessories, 21% purchase electronic products and rest of the consumers purchase any other things.

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When do you prefer to shop ?

Particulars First week of month Mid of the month During fresh season stock During discount When required Total

Number of Respondents 29 11 18 33 29 120

Percentage 25 9 15 27 24

Interpretation: The graph shows that 25% of the respondents prefer first week of month, only 9% prefer mid of the month, 15% prefer during fresh season stock, 27% prefer during discount and 24 % of the respondents are shopping when required.
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What is your average one time purchase at this organized retail outlet in Rupees ?

Particulars < Rs. 100 Rs.100 Rs.300 Rs.300 Rs.500 Rs.500 and above Total

Number of Respondents 17 38 22 43 120

Percentage 14 31 19 36

40% 35% 30% 25% 20% 15% 10% 5% 0%

36% 31% 19% 14%

<Rs. 100

Rs.100 Rs.300

Rs.300 Rs.500

Rs.500 and above

Interpretation: The graph shows that 14% of the respondents make one time purchase of less than Rs. 100, 31% make purchase of Rs.100 Rs.300, 19% are purchasing Rs.300 Rs.500 and 36% are making one time purchase of Rs.500 and above.
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In buying products you are sensitive towards :

Particulars Price Quality Variety Visual merchandising Shopping convenient Total

Number of Respondents 30 25 28 20 17 120

Percentage 26 21 23 16 14

Interpretation:

The graph shows that 26% of the respondents are sensitive towards price, 21% sensitive for quality, 23% sensitive towards variety, 16% sensitive for visual merchandising and 14% of the respondents are sensitive towards shopping convenient.

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When you visit organized retail your purchase :

Particulars Planned Unplanned Total

Number of Respondents 23 97

Percentage 19 81

Interpretation: The graph shows that 81% of the respondents are making unplanned purchasing and only 19% of the respondents said they are making planned purchasing.

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If unplanned:

Particulars Purchase more amount of same Purchase extra articles Total

Number of Respondents 72 48

Percentage 60 40

Interpretation: The graph shows that when consumers go for unplanned purchasing, 60% of the respondents purchase more amount of same and rest of the respondents purchase extra articles.

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What makes you to do unplanned purchase?

Particulars Discount Offers Lucky draws Variety Trials Future needs Special offers Total

Number of respondents 27 30 19 11 7 23 3 120

Percentage 23 25 16 9 6 19 2

Interpretation: The graph shows that discount makes 23% of the consumers to make unplanned purchases, offers influences 25%, lucky draw influences 16% and future needs makes 19% of the consumers to do unplanned purchases.

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You are usually motivated to purchase a specific product

Particulars By your own decision according to your requirement By the influence of sales person By the promotional schemes Total

Number of Respondents 71 12 37 120

Percentage 59 10 31

Interpretation: The graph shows that 59% of the respondents are motivated to purchase a specific product by their own decision according to requirement,10% are motivated by the influence of sales person and 31% of the respondents are motivated by the promotional schemes.

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Rating the parameters or factors based upon your preferences in organised retail as well as unorganised retail

Parameters or Factors Price

Particulars Poor Normal Good Best Total

Number of Respondents with their percentage Organized retail 10 43 30 37 120 Percentage 8 36 25 31 Unorganized retail 19 53 32 16 120 Percentage 16 44 27 13

Interpretation: The graph shows that the factor price is best in organized retail according to 31% of the total consumers but only 13% of the consumers told that price is best in unorganized retail.

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Parameters or Factors Quality

Particulars Poor Normal Good Best Total

Number of Respondents with their percentage Organized retail 6 31 58 25 120 Percentage 5 26 48 21 Unorganized retail 37 61 14 8 120 Percentage 31 51 12 6

60% 40% 20% 0% Poor 31% 5%

51% 26%

48% 21% 6% Best

12%

Normal

Good

Organised retail

unorganised retail

Interpretation: The graph shows that the factor quality is poor in organized retail according to only 5% of the consumers but 31% of the consumers told that quality is poor in unorganized retail.

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Parameters or Factors Variety

Particulars Poor Normal Good Best Total 57%

Number of Respondents with their percentage Organized retail 0 29 63 28 120 Percentage 0 24 53 23

53%

Unorganized retail 68 37 15 0 120

Percentage 57 31 12 0

60% 50% 40% 30% 20% 10% 0%

24%

31% 23% 12%

0% Poor Normal Organised retail Good unorganised retail

0% Best

Interpretation: The graph shows that the factor variety is best in organized retail according to 23% of the total consumers but nobody told that variety is best in unorganized retail.

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Parameters or Factors Location

Particulars Poor Normal Good Best Total

Number of Respondents with their percentage Organized retail 11 67 32 10 120 Percentage 9 56 27 8 Unorganized retail 18 32 53 17 120 Percentage 15 27 44 14

60% 40% 20% 0% Poor 15% 9%

56% 44% 27% 27% 14% 8%

Normal

Good

Best

Organised retail

unorganised retail

Interpretation: The graph shows that the factor location is normal in organized retail according to 56% of the total consumers but only 27% told that location is normal in unorganized retail.

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Parameters or Factors Service

Particulars Poor Normal Good Best Total

Number of Respondents with their percentage Organized retail 13 46 39 22 120 Percentage 11 38 33 18 Unorganized retail 57 43 17 3 120 Percentage 48 36 14 2

60% 40% 20% 0%

48%

38% 36%

33% 14% 18% 2%

11%

Poor

Normal

Good

Best

Organised retail

unorganised retail

Interpretation: The graph shows that the factor service is poor in organized retail according to 11% of the total consumers but 48% told that service is poor in unorganized retail.

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Parameters or Factors Offers

Particulars Poor Normal Good Best Total

Number of Respondents with their percentage Organized retail 10 29 33 48 120 Percentage 8 24 28 40 Unorganized retail 73 47 0 0 120 Percentage 61 39 0 0

70% 60% 50% 40% 30% 20% 10% 0%

61% 39% 24% 8% 28% 40%

0% Normal Organised retail Good unorganised retail

0% Best

Poor

Interpretation: The graph shows that the factor offers is poor in organized retail according to 8% of the total consumers but 61% told that offers is poor in unorganized retail.

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Parameters or Factors Everything at one place

Particulars Poor Normal Good Best Total

Number of Respondents with their percentage Organized retail 0 31 24 65 120 Percentage 0 26 20 54 Unorganized retail 42 51 24 3 120 Percentage 35 43 20 2

60% 40% 20% 0% Poor 35%

54% 43% 26% 20% 20% 2% Normal Good Best

0%

Organised retail

unorganised retail

Interpretation: The graph shows that the factor everything at one place is best in organized retail according to 54% of the total consumers but only 2% told that everything at one place is best in unorganized retail.

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Parameters or Factors Ambience

Particulars Poor Normal Good Best Total

Number of Respondents with their percentage Organized retail 3 19 62 36 120 Percentage 2 16 52 30 Unorganized retail 45 56 13 6 120 Percentage 37 47 11 5

60% 40% 20% 0%

37% 2% Poor

47% 16%

52% 30% 11% 5% Best

Normal

Good

Organised retail

unorganised retail

Interpretation: The graph shows that the factor ambience is poor in organized retail according to only 2% of the total consumers but 37% told that ambience is poor in unorganized retail.

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FINDINGS

During my project work at SPENCERS HYPER, Mani Square, Kolkata what I have personally felt and experienced that this is highly disciplined, well organized and integrated concern. It comprises a good number of skilled and qualified employees are working over there. The environment of the organization is very congenial and there are fellow feelings among the colleagues irrespective of their rank and status. Indeed, I am proud as I got an opportunity to perform my project work over there for a short tenure. What I have been moved and impressed that all existing employees have extended their cooperation as and when I need their certain helps in relation to my project work. Their amiable and suave behaviour also impressed me a lot. The findings of the study are illustrated as follows: Most of the customers prefer organized retail outlets than unorganized retail outlets. From the analysis of data, it is found that most of the customers are frequently visit the store for shopping. The customers are influenced by the advertising (print, TV, Radio) and promotion for their shopping behaviour.

 The study proves that the most of the customers normally visit either with their friends or family for shopping purpose. So it can be easily realize that the shopping decisions of the customers are highly motivated by their family members, friends, colleagues etc. Though a large percentage of the customers are purchasing grocery materials, but their also purchasing dresses, accessories, electronic products etc.

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Study reveals that customers are generally prefer to shop at first week of month, during discount and at the time when the shopping is required. In buying products, customers are sensitive towards different factors viz; price, quality, variety, visual merchandising etc. Most of the customers are going for unplanned purchase, where 60% of the customers prefer to purchase more amounts of the same and 40% one purchasing extra articles. Mainly discount given in the store, offers for products and future need influence the customer to do unplanned purchase. Now a day, the most of the customers are making their purchases with their own decision according to the requirement. The study proved that the customers are preparing the organized retail according to the ratings of various parameters such as price, quality, variety, location, service, offers, everything at one place and ambience of the store.

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RECOMMENDATION
The dissertation report has some recommendations, which are as follows: As people prefer to buy from local kirana store because of location, so the company has to open its new store at very main location in the city because the most important thing in retail is Location- Location- Location. As per survey conducted most of the people came to know about organized store because of print media, so companies must put more emphasis on the channel of communication and promotion means print media.

As customers prefer to buy from organized store firstly due to location, so companies must open its store at convenience location, then customer prefer quality, so companies must put only quality products inside the store. People dont prefer to buy frozen food and prefer to eat homemade food, so companies must not put frozen food in store to save inventory cost.

 As most of the customer found that pricing of items in the organized stores are higher than outside and as Indians are price sensitive, so must keep pricing of our less than outside. As our most of the companies are from lower income group, so we must keep merchandise according to their needs.

As the increase of women in purchasing and visiting the retail store, store should carry such items which can increase the attention of the women.
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CUSTOMER SUGGESTIONS
I have asked some of the customers to give suggestions to make it better. Some of the valuable suggestions are as follows: Pricing of product should be low inside the store than outside. Most of the customers suggested that food items must be fresh in store, otherwise its no worth. Credit facility must be provide to the customer just like local Mom and Pop provides. Big Brands must improve service quality as its name. More varieties of product should be available inside the store. More discount schemes should be available in the store.

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CONCLUSION
Retailers need to think about shoppers not just about a format as understanding the shoppers dynamics holds the key to such a business. Retailers would have to create new delivery formats that can cater to the huge mass of consumers. Retailers must understand what value shopper is looking for and how the retailers can deliver that desired value to the customer. However, most retailers look for what they are offering and how shoppers can fit into retailers scheme of offerings. All the formats are profitable and each format is tailor made to fulfill customer need. Hence, individual understanding is desirable. Though, some Indians are behaving as sophisticated shoppers, tens of millions are still novice but no less avid consumers are joining the fray every year. So, retailers have to acknowledge this change and also stay a step a head of the evolution curve of the Indian market. An Intelligence as well as almost real-time customer purchase behavior information. The retailers also need to make substantial investment in understanding/acquiring some advanced expertise in developing more accurate and scientific demand forecasting models. Re-engineering of product sourcing philosophies-aligned more towards collaborative planning and replenishment should then be next on their agenda. As the retail marketplace changes shape and competition increases, the potential for improving retail productivity and cutting costs is likely to decrease. Therefore, it will become important for

retailers to secure a distinctive position in the marketplace based on value, relationships or experience. Retailing is the final step in the distribution of merchandise-the last link in the Supply Chainconnecting the bulk producers of commodities to the final consumers. Retailing covers diverse products such as foot apparels, consumer goods, financial services and leisure. The organized retail sector is expected to grow at 6% by 2010 and touch a retail business of $ 17 billion as against its current growth level of 3%, which at present is estimated to be $ 6 billion. As India moves towards the service oriented economy, a rise in this percentage is expected. The number of the retail outlets is growing at about 8.5% annually in the urban areas and in towards with population between 1, 00,000 to 1 million; the growth rate is about 4 to 5%. Organized retailing is witnessing a wave of players entering the industry. These players are experimenting with
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various retail formats. Yet, Indian retailing has still not been able to come up with many successful formats that can be scaled up and applied across India. Some of the notable exceptions like Spencers Retail, Reliance Retail and Vishal Mega Mart who scaled their retail format across the country. But most importantly for winning in this intensely competitive marketplace, it is critical to understand the target customers definition of value and make an offer, which not only delights the customers but also is also difficult for competitors to replicate.

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REFERENCES
BOOKS
1. Consumer Behaviour : Insights from Indian Market by Majumdar, Ramanuj 2. Marketing Research by Jr., Joseph Hair, Robert Bush, David Ortinau 3. Marketing Research by Arora, Richa, Mahankale, Nitin R. 4. Marketing Research: Measurement and Method by Hawkins, Del I., Tull, Donald s 5. Consumer Behaviour and Branding by S Ramesh Kumar 6. Consumer Behaviour and Organised Retailing by Nitu Saxena 7. Consumer Behaviour An Indian Perspective Text and Cases by S.L Gupta, Sumitra Pal 8. Consumer Behavior by Michael R. Solomon 9. Consumer Behaviour, 10th Edition by Leon Schiffman and Leslie Kanuk

WEBSITE

1. www.scribd.com Business/Law Marketing 2. www.slideshare.net/.../studyofconsumerbuyingbehaviourinreliancefre 3. www.shine.com 4. www.studymode.com/.../consumber-buying-behaviour-in-organized-. 5. www.seminarsonly.com/...Projects/.../Buying-Behavior-of-Customers 6. www.docstoc.com/.../Project-on-Consumer-Buying-Behaviour. 7. www.oppapers.com/.../organized-retail-spencer's-vs.-kirana-store 8. www.allprojectreports.com/...Projects/...Project-Report/consumer-behaviour 9. www.slideshare.net/.../spencers-retail-ltd-project-report-summer-inter... 10. www.scribd.com Research Business & Economics

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Appendix

QUESTIONNAIRE
A STUDY TO ASSESS THE CONSUMERS BUYING BEHAVIOUR IN ORGANIZED RETAIL WITH SPECIFIC REFERENCE TO SPENCERS HYPER AT KOLKATA Respected Madam/Sir, I am Soumi Tarafdar, student of MBA 4 th semester, Aligarh Muslim University, Murshidabad. I am undertaking a dissertation project work as a part of my academics doing this survey in order to study consumer buying behavior in organized retail with specific reference to Spencers Hyper at Kolkata sector. I kindly request you to co-operate with me for few minutes and respond to the following questions and I assure that the information provided by you will be kept confidential and will use only for academics purpose. Soumi Tarafdar

PERSONAL DATA: Age (Years): a) 18 25 b) 25 35 c) 35 50

d) 50 and above Sex: a) Male b) Female

Education: a) Under Graduate b) Graduation c) Post Graduation d) Professional Qualified (MBA, B.Tech, CA, Doctors etc.)
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Occupation: a) Student b) Housewife c) Govt. Employees d) Private Employees e) Self Employed/Businessman

Monthly Income: a) Less than Rs. 20,000 b) Between Rs. 20,000 to Rs. 40,000

c) Between Rs. 40,000 to Rs. 50,000 d) More than Rs. 50,000

1. Where do you visit for your shopping needs? Organized retail outlet Unorganized retail outlet

2. How frequently do you purchase from this retail outlet? Twice in a week Fortnightly Monthly

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3. How far you have to travel to go for purchasing? Less than 2 km 2 km 5 km 5 km 8 km More than 8 km

4. Do advertisement and promotion influence your shopping decision? Yes

No

5. Which form of advertisement do you think is most effective? Print TV Radio

6. With whom you usually visit hyper? a. Friends b. Family c. Alone

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7. Main purpose of visiting this hyper For shopping For food For seeing a movie For window shopping

8. What type of products you frequently purchase? Grocery materials Dresses Accessories Electronic products Others

9. When do you prefer to shop? First week of month Mid of the month During fresh season stock During discount When required

10. What is your average one time purchase at this organized retail outlet in Rupees? < Rs.100 Rs.100 Rs.300 Rs.300 Rs.500 Rs.500 and above

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11. In buying products you are sensitive towards : Price Quality Variety Visual Merchandising

Shopping Convenient

12. When you visit organized retail your purchase? Planned Unplanned

13. If unplanned Purchase more amount of same Purchase extra articles

14. What makes you to do unplanned purchase? Discount Offers Lucky draws Variety Trials Future needs Special offers

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15. Are you brand conscious? Yes No

16. Are you satisfied with brand available in this hyper? Yes No

17. You are usually motivated to purchase a specific products by your own decision according to your requirement by the influence of sales person by the promotional schemes

18. Kindly rate the parameters based upon your preferences (1-poor ; 2- normal ; 3- good ; 4-best) : PARAMETERS Price Quality Variety Location Service Offers Everything at one place Ambience RATES

19. What changes would you like to see or recommend in the present format of this outlet?

Thanks for your co-operation