16 Chapter 5

Chapter 5
Rationale of Consumer Behavior in Organized Retail Outlets

5.1 Introduction
5.2
Factors Affecting Consumer Decision Making
5.3
Indian Retail Sector and Changing Consumer Behavior
5.4
Retail Consumer Behavior and Role of Services in Retailing
5.5
Theories of Consumer Behavior
5.6
Primary Data Analysis of Dimension of Consumer Behavior
5.7
Summary of the Observation
5.8
Testing of the Hypotheses
5.9
Conclusion
Chapter 5
Rationale of Consumer Behavior in Organized Retail Outlets

5.1 Introduction
The retail sector in India is witnessing a huge revamping exercise as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Western-style malls have begun appearing in metros and second-rung cities alike introducing the Indian consumer to a shopping experience like never before. The sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going to take a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. Organized retail is on all time high in India. The growth is boosted by various factors such as availability of professional practices, media proliferation, various brands which are gaining value thereby enhancing industry growth, availability of various funding options, regulations like VAT implementation to make processes simple, sea change in demographics of country and international exposure. The retail sector is one of the fastest growing ones in India, catering to the world's second largest consumer market. The Indian consumer market is estimated to grow at 13 percent annually from $322 billion in 2006-07 to $590 billion in 2011-12. Organized retail, which constituted a low 4 percent of total retail in 2006-07, is
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estimated to grow at 45-50 percent per annum and attain a 16 percent share of the total retail market by 2011-12302. Consumer behavior is defined as The dynamic interaction of affect and cognition, behavior and the environment into which human beings conduct the exchange aspects of lives. IT means that the buying habits of the consumer are greatly affected by their thought process and their feelings experienced. Human beings are greatly influenced in their buying actions by various factors like opinion of others, marketing stimuli like product, advertising, packaging and product appearance. Consumer buying behavior refers to the buying behavior of the ultimate consumer. Consumer behavior is the understanding of how consumers make decision to use their resources such as time money and effort for buying using and disposing goods and services .the behavior of humans as consumers is complex. Marketers understanding of the drivers of consumers buying behavior will help them to service their customer effectively and efficiently and attract new customers. It is very important and required to understand customers shopping behavior with regards to retailing this includes decision variables regarding brand selection shopping timing and choice of retail format and store. Traditional demographic variables cannot clearly identify the complete characteristics of an evolutionary retail market, as consumers in the same demographic group have diverse psychographic makeup. Therefore, psychographic factors influencing consumer behavior have to be understood more closely by organized retailers. Further, organized retailing itself has a tremendous influence on consumer behavior. Thus, consumer behavior and organized retailing have reciprocal influences on each other. So far, the prominent organized retail sector players have been largely restricted to urban areas. In fact, their emergence and growth has been phenomenal in metropolitan cities and in other large cities. However, of late, organized retail has started making
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Ghosh Dastidar Surajit and Datta Biplab., Demographic Differences in Consumer Exploratory Tendencies: An Empirical Examination, IIMB Management Review, Vol. 21, No.4, pp. 297-312 2009.
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inroads even into smaller cities. Infrastructure constraints, huge distribution costs owing to large geographical area, fragmented market, and absence of national distribution nodes and networks, are the main limitations faced by organized retailers today in India.
5.1.1 Indian Consumer Behavior The Indian consumer has undergone a remarkable transformation. Just a decade or two ago, the Indian consumer saved most of his income, purchased the bare necessities and rarely indulged himself. Today, armed with a higher income, credit cards, exposure to the shopping culture of the west and a desire to improve his standard of living, the Indian consumer is spending like never before. Organized retail with its variety of products and multitude of malls and supermarkets is fueling his addiction. His new mentality, in turn, is fueling the growth of organized retail in India. Some of the features characteristic of these consumers is their tendency to borrow money in order to buy the upscale items contrary to the traditional line of thought that Indian consumers are indisposed to credit. But these consumers not only have price and quality on their minds but also the fact that their brands effectively reflect their local environment and are consonant with their life style. And this is where the foreign multinationals coming into the Indian consumer market has to pay attention. Selling global brands in India at global prices is a road to perdition. Companies who have tailored their products to the Indian environment and customer have reaped high rewards. At the same time, Indians will find it hard to give up their old habits of shopping at the local corner-store or buying goods from the street-vendor. The next section describes the unorganized and organized retail sectors in detail. It is critical to understand these sectors individually to speculate about possible the nature of interaction between them. While the traditional form of retail in India is sure to suffer a setback from the entry of large organized retailers, it is possible for both forms to
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co-exist serving the new personality and old-habits of the Indian consumer simultaneously. The retailer in order to stay in the market and face the competition he should understand consumer shopping behavior. This is possible by analyzing the factors that affect behavior. These factors could be demographic, psychological, environmental or related to the lifestyle of the customer. The retailer also needs to identify the various stages in the customer decision making process and the major influence stage. To understand the concept from the 1950s to 1980 Indian shoppers were used to shop at Haat, Mandis, Melas and at small family run stores kirana shops. After liberalization, privatization and globalization Indian government lifted the restrictions from private companies and Indian economy slowly progressed from being state-led to market friendly. This was the beginning of modern India. The growth of middle and higher middle class, growing trend of call centers and BPO, increasing number o dual income nuclear families, convenience of shopping from one place to another, reasonable pricing and a good place to pass the time fuelled the growth of supermarket, hypermarkets and concepts of organized retailing in India.
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Figure 5.1 Consumer Behavior Model in Changing Retail Scenario
5.1.2 The Need for Studying Consumer Behavior The key challenge faced by the retailer is creating products and services which would be successful in the market. An accurate understanding of consumer need helps the retailer create product that is likely to be successful in the market. Understanding consumer buying behavior is the starting point of strategy creation. The understanding helps in determining the channels of communication, proving consumer knowledge which can help a firm assess how well it has achieved its product positioning goals. The firm with the help of studying consumer behavior tries to see how its products are perceived, whether there is a good match or not and then to consider the positioning strategy deemed a success.
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The retailer should know the consumers, because it is imported to know how, when and where the customers use the product or service that the retailers sell. When the retailer understands consumer behavior he is able to make an objective analysis of internal strengths and weakness. This analysis may reveal certain startling facts and provide direction for future differentiation strategies.
5.2
Factors Influencing the Behavior of the Consumer
The behavior of retail consumer is a subject of study across the world. In India retailers and retail formats are evolving on a great extent. Understanding the reasons for consumers behavior is very important for retailer. Following are the factors which influence the customers decision making process. 1. Range of Merchandise: The range of merchandise is perhaps the most important reason for customers to patronize a particular outlet. The initial curiosity of the store may draw a consumer to a retail store, but converting him into a buyer and retailing him over a period of time is largely dependent on the quality and the range of merchandise offered by the store. The range of merchandise offered plays an important role in case of categories like devalues, books and music. 2. Convenience of Shopping at a particular outlet: The element of convenience is a fast gaining promises in the world of organized retail. This is especially true in case of items like grocery/fruits and chemists. For example, while buying medicines, most patients would prefer the buy from the chemist near the doctor clinic or near the hospital. 3. Time to travel: The time required to reach a particular retail location is again fast becoming critical. This is very much relevant in cities or metros like Mumbai, where travel time is high. This has resulted in many local areas developing in terms of shopping to facilitate buying. 4. Socio economic factors: Socio economic factors are seen as a fundamental to development. India is a nation which has a large middle class a youth population
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which is happy spending and a steady rate of growth of G.D.P. The Socioeconomic background of the consumer largely determines his lifestyle. Consumer buying behavior varies from market to market and is largely influenced by the culture of the region. This can be explained with the help of an example. That is a culture of Asia is different than Western Culture, therefore accordingly consumer behavior also shifts. The retailer needs to understand that the need hierarchy is different for each market. It is important for the retailer to consider socio economic change in a geographic region over a period of time as it is indicator of the facilities available at various levels and the quality of life of the population this would indirectly be related to the spread of organized retail. The primary indication of socio economic change is the increase in life expectancy from 58 years in the year 1991-92, to an average of 66 years in 2006-07. India aims to achieve 100 percent literacy (within the age group of 15-35) by the year 2006-07, there also likely hood that the basic amenities like drinking water and electricity will be available and this will result in the improvement in the basic quality of life of an average Indian citizens and when basic necessities are being taken care there is good change that the demand for other products and services may increase. The researcher in order to understand whether the developments of organized retail outlets have changed the consumer behavior conducted a primary research of 723 consumers in Mumbai and categorized them into different age group. The results are put up in the table 5.1 and also the graphical representation in Graph 5.1. Table 5.1 Organized Retail outlets and change in consumer behavior Sr.No 1 2 3 Yes, very much Yes, to some extent No not at all Total 15-25 188 155 25 368 25-35 74 111 8 193 Age 35-45 23 65 5 93 45-55 10 34 13 57 > 55 5 5 2 12 Total 300 370 53 723
Source: Compiled from Primary data.
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Graph 5.1 Organized Retail outlets and change in consumer behavior
Table 5.1 and Graph 5.1 give a clear indication that the development of organized retail outlets in Mumbai has changed the behavior to a great extent. Major impact could be seen in the age group of 15-25 with 188 respondent having a feel of very much and 155 feeling that the impact has been to some extent, further it has been seen that respondents between the age group of 25-35 also feel the same but the number differing 74 respondent feel the impact is very much and 111 respondent feel the impact is to some extent. The analysis states that the young and middle a consumers are greatly influenced by the growth of organized outlets.
5.2.1
Stage of the Family Life Cycle
The stage of the family life cycle that customer belongs to and also it largely influences his needs. For example, the needs of a young bachelor will be different from the needs of an elderly retired couple. Therefore the retailers need to be clear about the market that he is catering to as he cannot be everything to everybody. Demographic factors Demographic factors are unique to a person. It involves identification of who is responsible for the decision making or buying and who is the ultimate consumer. All stores have focused themselves on respective segments based on factors such as age, income, family, size, gender, occupation, etc.
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Psychological factors Psychological factors refer to the inner aspects of an individual. An understanding of consumers psychology guides the retailers segmentation strategy consumers respond differently towards the same retail marketing due to their respective motives, personality, level of involvement and attitude. Motives : motivation is prerequisite for any action which includes buying .it stimulates the need Perception: perception is the process by which consumers attach meaning to incoming stimulate by forming mental pictures of persons, place and objects. Stimulates reception is accomplished though the fire senses that is sight, sound, taste, touch and smell. The consumer feels that what he/she sees hear, feel , taste and small is what they get Learning: learning is the process of acquiring knowledge through past experience. When a consumer visits a store and the treatment he receives will be criteria for repeat visits to the store. if the experience with the sales team was good then the consumer may visit the store even if the goods are slightly expensive. Tree sampling/ treats are also ways of making the consumer learn about a product and its attributes. A retailer must encourage a consumer to touch and feel the product so that his visit could turn in to a buying experience. Its been seen that most new format retailers have benefited on touch, feel, and experience concept which results in real learning process. Environmental factors: Environmental factors are both physical and social factors. This includes physical objects (goods and outlets) spatial relationship (location of shopping center and merchandising stores) and social factors (reference groups and opinion leaders). The environmental factors influence consumer attitude learning motives etc. which in turn influence affective and cognitive responses and therefore shopping behavior and the individual.
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Social class: social class is referred to as the classification of members of society into a hurrah of distinct status and class. Social class is measured by variables such as education occupation, wealth and ownership of assets. Market research has established a link between social class and consumer attitudes concerning shopping behavior. Middle class and higher sections of society prefer to shop for grocery items once a month from a particular shop. They usually prefer stores offering variety and range of choice perplex sectors of society usually purchase on a daily bases. Social statues of an individual play an important role even in determining the frequency of purchase. Its been seen that majority of the middle class consumers prefer to buy vegetables in the morning for their freshness despite the prices being on the higher side on the contrary the louder end sections of the society prefer to buy at late evening to get benefits of low prices Lifestyle: lifestyle refers to an individuals way/style of living as determined by his/her activities, interests and opinions. Lifestyle is considered to be highly correlated with consumers values and personality traits. An individuals lifestyles is influenced by the social group be belongs to and his occupation. 5.2.2 The Customer Decision Making Process The need for a product or services starts generally at the time when the need for the particular product or service is recognized. The need may be psychological or fictional. Psychological needs are associated with personal satisfaction that the customer may get from purchasing or using the product. The functional need is directly related to the function of product. The functional need is directly related to the function of product. Then comes a stage where consumers seek information about the product and the place where he can make the purchase. Therefore it is seen that in the world of relating consumer passes through five distinct stages to complete his buying process which are as follows.
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Figure 5.2 Customers decision making process
Depending on the criteria important to consumer he evaluates the various options available and narrows down the choice to a few stores where he may make the purchase. He also to make sure his buying decision may visit couple of stores Stage: I Identification of need for the product or service The buying process begins when the consumer becomes aware or realizes that they have some unsatisfied needs. The unsatisfied need arises when the customers desired level of satisfaction. The consumer through his previous lifes experience knows how well he can satisfy these unmet needs like hunger, thirst and shortage of clothing. Need recognition in most cases is straight forward when individuals find shortage of something or goods required are of daily use. For example, there is no wheat/milk in the kitchen. A need may be aroused by an external. Stimulus such as deserve to visit a part of a store while purchasing other usual items.
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Stage: II
Information search
The 2nd stage is gathering information on how to solve the problem is the consumer look for the possible options to resolve the need in consideration. Information search is a process where the prospective buyers examine their environment for appropriate information to make a sound decision .this search may be external (from memory) or external (through friends, family, published sources salespersons, and the internet) an individual usually drives or acquires information from the sources namely internal and external. Persons past experience accompanied with shopping exposure might provide him with substantial guidelines to make the correct decision with the help of his or her internal memory. Consumers invest time in information search in preparation to the perceived risk associated with the particular purchase and importance of purchase. Stage: III Evaluation of alternatives
After information search for the required product the consumer is expected to take a final decision on one of the choices. The search also helps the consumer to acquire knowledge about the criterion to be used to evaluate the various alternatives involved at the information stage. To justify this point in gurgoan some management students in order tie find out best option enlisted the following restaurants for entering friends a) Haldi ram b) Nirulas c) Mc Donalds d) Pizza hut. The alternatives which are actively considered during the consumer decision making process constitute the individuals evoked set. The evoked set comprised retail outlets already in the memory and distinctly added from the retail environment (i.e. mass media, friend) with respect to a particular product purchase. It is essential for all the retailers or marketers to ensure that their brand finds place in the consideration set of the target segment retailers require an effective marketing
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programme, especially in terms of their communication strategy in order to informed position the store as per the needs of the target segment. At the same time retailers need to revise its offering and attributes as per the changing preferences of their target segment. After evaluating or rating various alternatives or importance attributes an individual can shortlist the best possible retail outlet (an eating joint for taking his friends out for a treat). Stage: IV Purchase decision
After evaluating various alternatives an individual is in a position to focus on the preferred product category, good retail outlet or brand. This followed by a purchase decision by the consumer final choice from multiple alternatives leads to the purchase stage or decision. This involves an exchange of cash or credit note for the ownership or usage of offering. It is this purchase stage that generates revenue for the retailers and the marketers in the value chain. In the retailing content the purchase stage plays the most important role in consumer decision making with regard to place of shopping. in the Indian context one can obtain many products from multiple retail outlets or formats. Stage V: Post Purchase Dissonance After purchasing a particular good or service or visiting outlet consumers evaluate its performance against their expected level of satisfaction on account of important attributes. Example: When a consumer visits a multiplex theatre he/she is expected to examine the experience on account of sound effect, air conditioning efficiency, other consumer behavior, etc. This kind of evaluation is likely to lead to three possible outcomes: 1. Actual performance meets expectations leading to a neutral response. Hence the individual may like to evaluate it further.
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2. Performance exceeds expected levels, resulting in satisfaction. This may lead to repeated purchase and positive word-of-mouth publicity. 3. Performance may fall short of the expectations, resulting in dissatisfaction. This may lead to discontinuation of purchase of the particular good or from the retail outlet. Therefore in case of Post Purchase evaluation, the basic concern of the consumer is to reassure himself that he or she has opted for the best available option from amongst various alternatives. This helps the consumer to minimize the Post Purchase cognitive dissonance.
5.2.3 Emerging Patterns in Organized Retailing in Relation to Consumer Behavior The patterns of organized retailing in India and their consequential reciprocal relationship with consumer behavior can be observed through a deeper insight into the Indian market there exists two type of shopping which analyses the consumer behavior as mentioned below: 1. The hedonic shopping value differs across product categories and also in case of consumables and durables. 2. Utilitarian shopping has started giving way to hedonic shopping'! With the emergence of organized retailing. Yet, the majority still prefers utilitarian shopping. 3. Add-on features in modem retail stores have an insignificant impact on actual sales conversion, as majority of the consumers still prefer 'value for money' while shopping. 4. Retail service quality has assumed the central role in shaping the consumers' perception, sales conversion rate, and repeat sales and overall shopping satisfaction.
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5. Socio-cultural differences, coupled with other demographic and psychographic factors, are influencing buying behavior and choice of the store even after the emergence of egalitarian shopping malls.
5.3 Indian Retail Sector and Changing Consumer Behavior The Indian retail sector is still predominantly unorganized. However, organized retail units are fast emerging and becoming the preferred choice of consumers, especially in urban areas. This development is attributed to a number of factors. Firstly, economic liberalization has facilitated the entry of multinationals into the cash-and-carry business and single brand retailing. Multinational companies are also taking advantage of India's low-cost labor and raw materials to make India a sourcing hub, as well as a market for their products. Secondly, increasing income levels and a growing sense of brand consciousness among India's middle and higher income groups have led to increased popularity of organized retail units. The changing consumer behavior is increasingly shaping organized retailing and is, in turn, evolving with new found options and opportunities. On the socio-cultural side, the growing number of nuclear families, general improvement in education levels and, most importantly, continuous rise in women's economic independence through jobs, as well as entrepreneurship, has made women play a more proactive role in shopping for the family. This has led to an increasing number of customers availing of convenience options such as super markets, where most of the shopping for daily necessities can be done under one roof. Changing income levels and occupation have resulted in a change in the consumers buying behavior. More urban women are seeking employment resulting in dual income families. This results in more disposable income that in turn spawns consumerism. Moreover, in households with working women there is greater work pressure and increased commuting time resulting in adjustments being made to the food habits (cooking vs. ready to eat) as well as clothing. The focus shifts to
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convenience and comfort. The size and composition of the shopping basket has changed over time. Todays consumers are looking for shopping convenience and want to have all their requirements under one roof, coupled with speed in the retail store operations. Due to time constraints, families are now looking for shoppertainment combining shopping with entertainment. This is one of the causes of increased footfalls at malls with multiplexes. As India moves into modern retailing with several changes with regard to its markets, bands and consumers there are unique challenges that a multinational company entering India has to cope up with, whether it is a fast moving consumer goods (FMCG) company or a multinational retail chain like Tesco or Wal-Mart. There are unique retailing aspects that need to be studied in detail by these companies. While the world over the retail density (number of shops per 1000 consumers) is on the decline, the retail density in India is on the increase. This is because of the fact that small neighborhood shops called kirana shops about eleven million in India. They have been a part of the Indian shopping culture for several decades and even toady organized retailing (modern retail outlets) contribute just 2-3 percent of the total retail sale in the country. Point of Purchase (POP) materials are used both by kirana shops and by organized supermarket retail outlets. This study investigates the impact of POP materials on kirana shop purchases and the purchases of consumers from supermarkets. Given the importance of POP material on the purchase of FMCG purchases, the authors feel that this study will be useful to bridge the gap between theory and practice and will provide valuable insights to managers involved in retailing. Reciprocal Influence of Organized Retailing on Consumer Behavior Consumer choices and preferences and overall consumer behavior have always played an important role in shaping market trends and have thus influenced the evolution of organized retailing in India. However, after reaching a specific stage of development, organized retailing has also started influencing the way the consumers look at the market, not only in terms of choice of products and services, but also in terms of the
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overall shopping experience. Enhanced shopping experience, better packaging, hygienic environment and value added services rendered by organized retail stores have raised the expectations of even those consumers who frequent traditional kirana stores. In response, many of the traditional stores in the unorganized sector have reinvented themselves and adopted better practices in product packaging, visual merchandizing and display, etc. In turn, many organized retailers are resorting to selling below the maximum retail price, providing home delivery and implementing loyalty programs, as strategies for survival. While unorganized retailers have started reinventing themselves due to the inroads made by organized retailers, the organized retailers on their part have realized the importance of the personal touch provided by traditional kirana merchants and have begun offering personalized services, trying to strike a lasting relationship with their customers through membership cards, and intimation regarding bargain offers through SMS, etc. The dramatic changes in consumer behavior have necessitated made it imperative for marketers to have in-depth knowledge about various dimensions which link retailing and consumer behavior. For instance, McDonald's found that a sizeable percentage of its customers decide about eating and the choice of restaurant at the last moment. It is, therefore, opening small outlets in popular shopping areas and malls, in places with high traffic density and at airports. It is also providing play areas to ensure that families visit its outlets along with children. McKinsey Global Institute, in association with the Indian Council for Research on International Economic Relations (ICRIER), brought out a study report titled, "The Bird of Gold, The Rise of India's Consumer Market". This study attempted to analyze the rise of the Indian consumer market and its influence on consumer spending, their buying behavior and the overall economic development of the country. ICRIER also conducted a comprehensive study titled, "Impact of Organized Retailing on the Unorganized Sector". This study brought out the emerging patterns of organized retailing and identified the possible impact on consumers, intermediaries and manufacturers. It also made some policy prescriptions in this regard. It can be
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summarized that a precise understanding of consumer's choices and preferences is the key to success in the changing milieu. Redefining Retailing and Consumer Behavior During recent years, the entire concept of retailing has been redefined in terms of both its structure and also the fundamental changes in consumer behavior on account of demographic, psychographic and socioeconomic factors. The changing pattern of consumer behavior is influencing retailing in India, especially organized retailing. As a matter of fact, personal and social factors such as needs, perceptions, attitudes, interests, opinions, activities and lifestyles mostly influence consumer behavior in a rapidly changing retail environment. Traditional demographic variables cannot identify the complete characteristics of an evolutionary retail market, as consumers in the same demographic group have diverse psychographic makeup. Therefore, psychographic factors influencing consumer behavior have to be understood more closely by organized retailers. Today, retailing is much more than mere merchandising. It is about reflecting customer desires and aspirations, and forging long-lasting relationships with them. As the Indian consumers evolve, they expect much more each time they step into a store. The concept of shopping has undergone a change in terms of format and consumer buying behavior, ushering in a revolution in shopping. Retailing is going through a transition, not only in India, but the world over. For a long time, the comer grocery store was the only choice available to the consumer. This has given way to international formats of retailing. The traditional food and grocery segment has seen the emergence of supermarkets and grocery chains. The non-food segment in organized retailing has extended itself into various formats and categories where it has been largely successful. The research showed that todays savvy consumers demand increasingly creative and more importantly interactive strategies, to entice them into stores. Discovering what makes consumers tick and buy from certain stores can perhaps be achieved by returning to more traditional retail methods that allow the consumer to participate or
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interactive with the seller on a more personal level or implement new technology that streamlines the purchasing process as smooth and painless as possible. Staffing is also an area that can make or break consumers retail experiences. Obtaining the right balance between being overbearing and non-existent staff is difficult but vital to creating a good store image and something that consumers believe is still not being got right. Personal service and not being held in a queue is something that we have gotten used to on the internet. Self-service options, which are becoming standard in many of the major supermarkets, go somewhere toward achieving this. Influence of situational variables on shopping behavior A shopping situation is a particular act of Buying Behaviour occurring at a specific point in space and time. This can be explained with the help of following examples: A customer seeking service at the Lakme beauty parlours these parlours are open to customers on all the seven days of a week, from 10 am to around 7 pm, in the midst of soft lights while the strains of sarange and sarod soothe the customers frayed nerves which is simply a behavior setting. The situation serves as an interface between the person (salon consumer) and the stimulates object (beauty treatment such as facial pedicure etc) and all those factors defining that interface constituting situational variables. Situational variables refers to all those factors particular to a time and place of observation which do not follow from a knowledge of personal (intra-individual) and stimulus (choice alternatives) attributes. These attributes range from store location and layout to time of day and the presence or absence of others. These are classified into four distinct dimensions of situational influence.
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Figure 5.3 Dimensions of Situational Influence
1. Physical Setting: The physical setting covers geographical location of the retail but might equally be seen in terms of the environment in which the consumer reads a catalogue or access a shopping centre and a particular store. Shoppers are categorized in the following manner: 1. The shoppers who travel for half an hour or more are considered Far shoppers. 2. The shoppers who travel for less than half an hour are considered near shoppers. 3. The shoppers who usually shop before 3 pm are designated as early shoppers. 4. The shoppers who usually shop after 3 pm are designated as late shoppers. It is also seen that there is influences on consumer behavior resulting from environmental conditions such as weather or climate, placement of merchandise, access to information in a store and background music or color scheme. 2. Social Setting: The social setting describes the presence or absence of others together with their social role attributes and opportunities for interaction. Therefore it encapsulates everything security staff in the shopping centre or
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store, opportunities for interaction with sales staff, friends or relatives accompanying the consumer on the shopping trip and even to proximity of other customer present in the store or service scope. The shoppers who are accompanied by other people are considerate to be social shoppers; those who are unaccompanied are designated solitary shoppers. 3. Temporal Aspects: Temporal aspects are very important elements that affect the situational variables. Time of day and constraints upon time available for shopping are variables with very obvious effects on buyer behavior. For example: Milk is purchased from vendor or retail outlets by most of the people in India in morning hours or evening hours. Women prefer shopping in post lunch hours after attending to their children and returning before the rest of the family reaches home. Theyre taking into consideration the above factors, the retailers open their shops in accordance to shopping hours of their target segments. Shoppers who spent hours less than an hour was considered were considered to be quick shoppers and those who spent more than one hour or more were designated as slow shoppers. 4. Task Definition: Task definition is more individual specific and encompasses cognitive and motivational indications of the shopping situation, effectively capturing situational influences on the task definition, information search and evaluation stages depicted in traditional consumer decision making models. The difference in the degree of information processing behavior varies for practical or hedonistic products, products for self consumption versus gift purchases for others etc. Therefore the sound understanding and importance that is given to the influence of situational variables in devising the retail marketing mix will ensure the effective and profitable output to the retailers. It is also seen that the consumer image of a retail outlet plays an important role in determining the nature of shopping behavior, it is
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also important to understand the factors that affect the image formation of retail store along with the process of its formation.
5.4
Retail Customer Behavior and Role of Services in Retailing
In marketing there exists both the customer and the shopper. Customer is someone who buys from the retailers and the shoppers are the ones who buy from the retailer. Example: Window shoppers who spend time in the retail outlets just looking at the products but with or without any real intention for buying. Its a belief that consumer has time constraints and therefore wants everything at his disposal and in spite of internal making inroads in the shift of shopping behavior but majority of the consumers still prefers to purchase through stores. Stores remain popular because of the following basic reasons: 1. Need to touch and feel the product prior to buying 2. It allows social interaction and the opportunity to compare brands at one place. 3. It initiates impulse buying by the look and physical feel of the product such as chocolates snacks and 4. Consumers also look for ambience and convenience in shopping. 5. Customers money drives the economy and retail is where consumers spend their money such as in boutiques, restaurants discounts stores and e tailors. 6. Consumer shopping behavior can be understood analyzing factors such as demographic, psychological or the lifestyle of the consumer. Retailers are required to have better understanding of consumer benefits their perceptions and attitudes and how they influence the development of successful retail marketing strategies. Effective retailing requires an appreciation of the buying behavior of consumer.
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Its important that retailers must understand their consumers better so that they can both respond to and anticipate their needs proactively. The following are some major criteria for the right approach to a customers requirements: 1. Creating the right environment. 2. Listening to customers 3. Providing rewards to frequent buyers. 4. Realizing the lifetime value of a customer and ensuring loyalty. The concept of life time value customers is employed in relationship building and marketing.
5.5
Theories of Consumer Behavior
The most fruitful approach to an understanding of retail demand is to identify and evaluate the broader theories of consumer behavior linked to purchase behavior. The discipline of consumer behavior has borrowed a range of concepts from the quantitative and behavioural sciences in order to generate integrated models of action. Theories can only be assessed on the contribution they make to our understanding of the purchase process. Models of behavior are useful means of organizing dispatch bodies of knowledge regarding social action on somewhat arbitrary yet plausible process of intervening psychological, social economic and behavioral variables. The early models were; 1. The Engel-Kollat Blackwell (EKB) model (1986) 2. Howlard and Sheth (1969) 3. Nicosia (1966) These models can be found to share several commonalities:
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1. They all exhibit consumer behavior as a decision process. 2. They provide a comprehensive model for focusing mainly on the behavior of the individual consumer. 3. They share the belief that behavior is rational and hence can in principle be explained. 4. They view buying behavior as purposive, with the consumer as an active information seeker- both of information stored internally and of information available in the external environment. Thus the search and evaluation of information is a key component of the decision process. 5. They believe that consumers limit the amount of information taken in and more over time from general notions to more specific criteria and preference for alternatives. 6. They all include a notion of feedback that is outcomes from purchases will affect future purchases. I. The Engel-Kollat-Blackwell (EKB) model
The Engel-Kollat-Blackwell (EKB) model has been widely referenced and is acknowledged as one of the most comprehensive explanations of consumer behavior. The original model has undergone three major revisions since 1968 and the current model. While retaining some of the fundamentals has become more sophisticated in definitional and explanatory aspects and therefore varies from the original version. The EKB model takes a broad view, incorporating inputs such as perception and learning. A key feature of the EKB model is its incorporation of the differences between high and low involvement as part of the buying process. High involvement is normally present in the decision making process when the perceived risk in the purchase is high. This element of risk is higher when the consumer is unsure about the outcome of his or her purchase decision. This arises when:
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a. Information is limited b. The buyer has low confidence. c. The price relative to income is high This has obvious connections to demand Engel, Blackwell and Miniard (EBM) in 1986 stated that limited problem solving (LPS) activity takes place when there is little perceived risk that a wrong decision will be made. The EKB model has the decision process as pathways of convergence passing through various stages of processing prior to any choice being made. II. Sheths family model of behavior
The Purchase decision process quite often is investigated in terms of the individual. It is clear that for the purchase of high price items the decision process involves a high level of risk that the decision may be a poor one. It also often involves the preference resolution of more than one individual. This creates a complex situation whereby, more often than not, the purchase has to satisfy the divergent needs of the group. Within the theory of family buying behavior there is a concept of role structure, that is among individual members of the family takes on roles such that collecting information, deciding on the available budget etc. the family can make any ways its final decision but it has to be realized that the dealing is with a homogenous unit, but with a collection of individuals with different roles, needs modules and interest. The Sheth model of the family decision process provides one of the few examples of an attempt to replicate the behavior of group decision making. There exists a problem with Sheth model and that is every aspect of search modules, believes and prepositions occurs in tandem with each member of the group prior to their being a resolution of the group to a final decision and thereby a joint or autonomous outcomes occur.
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5.6
Primary Survey of Consumer Behavior
Indian consumer markets are becoming increasingly complex and competitive. The internationally known brands, modern retail outlets, and increasingly discerning consumers have made the markets very sophisticated. Demands for goods and services are changing very rapidly these days. The higher income, socio-economic changes, and the growing national population are the most important trends that will affecting the market in this decade. Also, consumer life styles and preferences are changing, which have created a wide diversity of consumer demand. With these changes, retailers will have to redefine their marketing strategies in order to compete and preserve market share. Consumers are now exposed not only to higher levels of information about the offerings of competing supermarkets, but they are also faced with a larger number of choices from which to pick out their best buy. Therefore, it is necessary for the retailers of supermarkets to know about consumers choice processes and to understand the major determinants of store patronage. The primary question before the retailer is: How do consumers make store choice decisions? A retailers success is said to be tied to his focus in customers. Retailers need to understand which factors influence the customers to purchase in their stores. They must give these customers a legitimate reason to shop in one particular store over another, and one of the ways to do this is to look at the customers needs and wants. Retailers need to examine such basics as what they offer the customers in the way of time, service, selection, quality, value and confidence. A deluge of research reports and diverse data appearing on the changing consumer behavior in globalised India in newspaper, magazines, journals and also the views of various academicians have been expressed in various seminars and conferences. This raised a curiosity in the mind of the researcher to study the volatile consumer behavior. The researcher selected Mumbai region because of the rapidly changing face of the urban market, mushrooming of malls in this metropolitan city, the researcher also understood the fact that changes take place first in Mumbai being a commercial capital of India. Retail executives are increasingly aware of the diversity in the patterns of shopping behavior among consumers. This diversity has been accompanied by a shift in the channel power relationships in the distribution of goods and services. Both the
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diversity in the pattern of shopping behavior and the power shift has encouraged researchers to focus more attention on patronage behavior in an effort to understand the consumer better. The study basically focuses on the organized retail outlets and its impact on the consumer behavior. The term consumer behavior has wide connotations and the study covered broad areas related to consumers perception, consumers preference their buying behavior etc. The researcher in order to find out this targeted few categories such as age status, marital status, employment status and gender. The main objective was to find out the changing consumer behavior their familiarity with regards to organized retail outlets and the impact of these outlets on their budget and on the unorganized retail outlets. Since Mumbai metropolitan city has a huge population therefore the researcher took limited sample size of the population. The researcher in spite of taking limited sample size tried to show the necessary impact on consumer behavior in the near future. Profile of the respondents The total number of respondents selected was seven hundred twenty three for the entire Mumbai region. The detail of the sample is as below which is distributed age wise. Employment status of the respondents The researcher made an attempt to ascertain the employment status of the respondents first. A total of four categories were made, namely, business, service, self employment (which included people associated with professions like health and beauty parlors classes) none employed, this category mainly included housewives and students. Since the researcher selected the sample on random basis, it became essential to ascertain the employment status and on the basis of which the responses of the respondents could be categorized.
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Table 5.2 Employment Status of the respondents Sr.No. 1 2 3 4 5 6 Categories Self Employed Service Business Retired Not Employed Currently Housewife Respondents 62 331 64 51 169 46 Percent 8.6 45.8 8.9 7.1 23.4 6.4
Graph 5.2 Employment Status of the respondents
Table 5.2 and Graph 5.2 give a clear indication of the category of population residing in Mumbai. Out of the 723 respondents its been found that maximum population belongs to the service class, sixty two belongs to the self employed group sixty four belongs to the business class and further there has been evoked a category who are not employed currently with forty six respondents . This category mainly consisted children and housewives. Therefore it could be seen that it is service class employees with regular monthly income who gets influential with organized retail outlets.
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Profile according to the Annual Income of the respondents Another area that was keen to study by the researcher was that annual family income of the people. This was divided in the ranges, from Rs. one lakh to Rs. ten lakh and above as given in the table. The researcher conducted this study to understand the category of people visiting the organized outlets in Mumbai. Table 5.3 Annual Income of the respondents Sr.No. 1 2 3 4 5 Categories 1-3 Lakh 3-5 5-7 7-9 10 & above Total
Respondents 289 178 74 49 133 723
Percent 40.0 24.6 10.2 6.8 18.4 100.0
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Graph 5.3 Annual Income of the respondents
Table 5.3 and Graph 5.3 project information about annual income of the respondent. Since maximum population belong to salaried class and followed by a combination of self employed and business class it has been seen that there is a tilt between one and five lakh there also has been an increase in the income range from ten lakh and above with one hundred thirty three respondents falling into the category. Visit to Organized Retail Outlets The researcher in order to understand the shift in consumer behavior was keen in knowing their visit to the organized retail outlets. In order to get a clear view the researcher further divided it in the categories of age, marital status, gender and annual family income. The results found gave an interesting scenario of the Mumbai based consumers.
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Table 5.4 Visit to Organized retail outlets as per age group Sr.No Age Number of Respondent yes 1 2 3 4 5 15-25 25-35 35-45 45-55 > 55 Total
No 104 28 7 5 5 149
264 165 86 52 7 574
Graph 5.4 Visit to Organized retail outlets as per age group
Table 5.4 and Graph 5.4 give a clear view of the respondent belonging to the different age group visiting to organized retail outlets. The researcher was keen in knowing the age group who visit the organized retail outlets maximum. The results put up gives a clear view that 264 respondent of the age group 15-25 165 respondent of the age group 25-35 and 86 respondents of the age group 35-45 visit the organized retail
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outlets the maximum stating that it is the teenagers and the young adults who prefer organized retail outlets the maximum. Further the senior citizens with 7 respondents still prefer to visit the traditional outlets. Therefore it is seen from the research that gradually the organized retail outlets have started pulling the maximum population resulting in changing consumer behavior. Table 5.5 Visit to Organized retail outlets as per Gender
Sr.No Response 1. 2. Yes No
Details Male Total Respondents Total Respondents Total Respondents 260 109 369
Sex Female 314 40 354
Total Male 260 109 369
Graph 5.5 Visit to Organized retail outlets as per Gender
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Table 5.5 and Graph 5.5 give a clear view of the respondents visiting to organized retail outlets. The results put up gives a clear view of the respondent belonging to the different age group weather married or male or female and earning any annual income of family. On being asked about their visits to organized retail outlets it was absorbed that a total of 79 percent of respondents gave an affirmative reply of their visit and the 21 percent gave a negative reply this shows that the visiting population outnumbered the non visitors. Further it is also seen from the research that gradually the organized retail outlets have started pulling the maximum population resulting in changing consumer behavior. Table 5.6 Visit to Organized retail outlets as per Annual Family Income
Sr. Response Details No. % 1 2 Yes No Respondents Respondents Annual Family Income 1-3 Lakh 3-5 Lakh 5-7 Lakh 7-9 Lakh 10 & above 77% 23% 62% 38% 89% 11% 92% 8% 97% 3% Total 79% 21%
Graph 5.6 Visit to Organized retail outlets as per Annual Family Income
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Table 5.6 and Graph 5.6 give a clear view of the respondents visiting to organized retail outlets. The results put up gives a clear view of the respondent belonging to the different age group weather married or male or female and earning any annual income of family. On being asked about their visits to organized retail outlets it was absorbed that a total of 79 percent of respondents gave an affirmative reply of their visit and the 21 percent gave a negative reply this shows that the visiting population outnumbered the non visitors. Further it is also seen from the research that gradually the organized retail outlets have started pulling the maximum population resulting in changing consumer behavior. Frequency of Visit to Organized Retail Outlets Seven hundred twenty three respondents from different suburbs of Mumbai were selected for the purpose of data collection. The research was divided into various categories and the researcher basically concentrated on marital status wise. To understand the changing behavior of consumers it is very much important to analyze the frequency of their visits. The results are put up in tabular form below. Table 5.7 Visit to Organized Retail Outlets as per Marital Status Sr.No Frequency of the Visit 1 Daily 2 3 4 5 3-4/week Weekly 1-2/month Occasionally Marital Status Married Unmarried Total Respondents Total Respondents Total Respondents Total Respondents Total Respondents Total
Total 33 27 184 264 66 574
6 9 91 120 26 252
27 18 93 144 40 322
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Graph 5.7 Visits to Organized Retail Outlets as per Marital Status
From the Table 5.7 and graph 5.7 it is pertinent that it is unmarried people who visit the malls more with three hundred twenty two respondents visiting .Further a deep survey showed that the frequency varied but all of them visited the organized outlets. 27 percent respondent visited daily, 18 visited in three to four weeks 29 percent visiting weekly 45 percent visiting in one to two months and forty percent visiting occasionally. The respondents also gave the list of most chosen destination by them which were only the preferences they included: i. Globus, ii) Inorbit Mall, iii) Growells iv) V Mall v) Shoppers Stop vi) Nirmal Lifestyle vii) The Hub viii) Megha Mall ix) Lifestyle. Products preferred Malls basically termed as Multi Brand Outlets. The organized retail outlets are very much popular in Mumbai because of the fact that they offer variety of choices and again they provide a unique experience of see feel touch and posses. The shops in these outlets have unique blend of various merchandise which include basic, comfort, lifestyle branded and unbranded therefore the researcher made an attempt to find out the preferences of Mumbai based on consumers and this throws a light on the shift of behavior of consumers.
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Table 5.8 Products Preferred
Sr.No 1 2 3 4 5
Products preferred Basic (Food, Grocer and General Provisions) Lifestyle (Comfort, Luxury) Branded Unbranded Only products with discount offers Total
Response 85 33 485 42 78 723
Percent 11.8 4.6 67.1 5.8 10.8 100.0
Graph 5.8 Products Preferred
Table 5.8 and Graph 5.8 gives a clear view of the study, out of 723 respondents 485 prefer branded goods 85 basically concentrate on basic products like food and grocery there also have been introduction of a category of lifestyle with 33 respondents preferring it. To get a clear view from the respondent the researcher provided bifurcated from the responses it is understood that the respondents visit the organized outlets in search of branded goods but they also are inclined towards products with discount offers (78).Therefore the researcher believes that consumers in Mumbai have a mixed requirement when they visit the organized retail outlets.
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Table 5.9 Products Preferred as per Age Sr. Products Preferred Age No. 15-25 25-35 35-45 45-55 > 55 Total 1 Basic (Food, Grocer and General Provisions) 43 34 6 2 0 85 2 Lifestyle (Comfort, Luxury) 19 7 4 2 1 33 3 Branded 230 132 68 48 7 485 4 Unbranded 41 1 0 0 0 42 5 Only products with discount offers 35 19 15 5 4 78 Total 368 193 93 57 12 723
Graph 5.9 Products Preferred as per Age
The respondent tried to find out the type of products purchased by the consumers of different age groups which are put up below.
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Table 5.9 and Graph 5.9 throws light on the information about the product preference by the different age groups. The detailed analysis shows that consumers of all the age group prefer branded goods. The proportion is very high in the young age group of 15-25 with 230 respondents preferring branded followed by age group 25-35 with 132 respondents. Therefore the analysis shows that according to the young generation perception it is organized retail outlets where branded goods are sold because as seen in the earlier table the young generation visit organized outlets.
Table 5.10 Products preferred as per Annual Family Income
Sr. No. 1-3 Lakh 1 Basic (Food, Grocer Total and General Respondents Provisions) Lifestyle (Comfort, Luxury) Branded Unbranded Only products with discount offers Total Respondents Total Respondents Total Respondents Total Respondents Total Source: Compiled from Primary data. 43
Annual Family Income 3-5 5-7 7-9 Lakh Lakh Lakh 34 4 3
10 & above 1
Total 85
2 3 4 5
13 159 41 33 289
14 115 1 14 178
2 61 0 7 74
1 39 0 6 49
3 111 0 18 133
33 485 42 78 723
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Graph 5.10 Products preferred as per Annual Family Income
The respondent tried to find out the type of products purchased by the consumers of different age groups which are put up below. Table 5.10 and graph 5.10 throws light on the information about the product preference as per the Annual family Income. The detailed analysis shows that consumers belonging to any income group prefer branded goods. The proportion is very high in the income range of 1-3 lakh with 289 respondents opting for organized retail outlets for purchasing basic (food grocery and general provisions) with 43 respondents, lifestyle goods with 13 respondents and with 159 respondents for branded goods. It is also seen that 485 respondents belonging to any income range prefer to go to organized outlets basically for branded goods. This shows that in Mumbai no matter to which income group the respondent belongs to but for opting branded goods they go to organized outlets. The researcher was keen in knowing the preference of married and unmarried respondents in buying the products. There was a belief that it is unmarried who visit more to the organized outlets. To understand this analysis was done and the compiled data is put in a tabular form below.
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Table 5.11 Products preferred as per Marital Status Sr. Types of Products No. Preferred 1 2 3 4 5 Basic (Food, Grocer and General Provisions) Lifestyle (Comfort, Luxury) Branded Unbranded Only products with discount offers Total Respondents Total Respondents Total Respondents Total Respondents Total Respondents Total
Marital Status Married Unmarried 33 9 208 0 36 286 52 24 277 42 42 437
Total 85 33 485 42 78 723
Graph 5.11 Products preferred as per Marital Status
Table 5.11 and Graph 5.11, shows that out of 723 respondents, it is 286 married and 437 unmarried respondents who visit malls for fulfillment of their requirement. Further it is also seen that both married and unmarried prefer branded goods but it is
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unmarried respondents (277) who visit malls with an intention to purchase branded goods. Therefore the researcher believes that organized outlets offer number of options to the consumers to make choices. Consumers also prefer visiting these outlets because here they not only get goods of their choice but they can touch feel and also see and thereby giving them a unique experience. The researcher tried to explore this fact and find out the result. Impact of Organized Outlets on Budgetary Spending There has been an assumption that growth of organized retail outlets have increased a impact on the budget of the consumers visiting them to find out this the researcher framed a question asking the respondents randomly about the impact these outlets have created on their monthly budgets and to analyze the researcher conducted study under two categories employment status and annual family income. Table 5.12 Impact on Budgetary Spending as per Employment Status
Sr. No. 1 2 3 Response Employment Status Self Not Employed Employed Service Business Retired Currently 28 15 19 62 162 65 104 331 36 6 22 64 8 1 42 51 95 51 23 169 Total Housewife 31 13 2 46 360 151 212 723
Yes, Higher spending Yes, Lower spending No Total
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Graph 5.12 Impact on Budgetary Spending as per Employment Status
Housewife Employment Status Not Employed Currently Retired Business Service Self Employed 0
13
31 23
51
95
No Yes, Lower spending
1 8
42
22 6 36 65 19 15 28 50 100 150 200 104 162
Yes, Higher spending
Table 5.12 and Graph 5.12 show that there has been a significant impact on the budgetary spending of the respondent belonging to different employment status, with 360 respondent accepting the fact that there has been higher spending and 151 saying spending has increased but little lower there has been 212 respondent who felt that there is no impact on their budgetary spending. Further as per analyze its been observer that there has been drastic change in the budgetary spending specially in service oriented respondents with 162 respondent reciprocating, that development of organized retail outlets have initiated them in higher spending. Table 5.13 and Graph 5.13 shows the budgetary impact as per annual family income out of total 723 respondents 360 respondents feel that there has been higher spending and 151 respondent feel that increase is there but little low and 212 respondents feel there has been no significant impact on the budgetary spending. Further classification shows that respondent in income slab of 1-3 lakhs are the ones who viewed more about the impact on budgetary spending.
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Table 5.13 Impact on Budgetary Spending as per Annual Family Income

Sr. Details Annual Family Income No. frequency of visits 1-3 Lakh 3-5 Lakh 5-7 Lakh 7-9 Lakh 1 Yes, Higher spending 114 69 42 31 2 Yes, Lower spending 74 28 18 6 3 No 101 81 14 12 Total 289 178 74 49
Total 10 & above
104
360
25 4 133
151 212 723
Graph 5.13 Impact on Budgetary Spending as per Annual Family Income
Preference of visit to organized retail outlets than unorganized retail outlets There has been long debate on the popularity of both the retail outlets and also to know which outlets the consumers prefer to visit the more. The researcher in order to find out the preferences of the respondents between organized and unorganized tried to ask certain questions. The main objective was to understand the shift in their
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behavior after the development of these outlets. The replies gave a clear idea about the trends that will be followed in the future. The researcher categorized two basic areas (Gender wise and age wise) to know the preference. Table 5.14 Preference of visit to organized retail outlets than unorganized retail outlets as per Gender
Sr.No 1 2 Preference Yes No Total Total Respondents Total Respondents Male 237 132 369
Sex Female 261 93 354 Total 498 225 723
Graph 5.14 Preference of visit to organized retail outlets than unorganized retail outlets as per Gender
An attempt was made by the researcher to understand the preferences made by the respondents as per gender Table 5.14 and Graph 5.14 shows that in all 723 respondents were surveyed and 498 respondent gave an affirmative response of visiting the organized retail outlets further analysation showed that the female
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population in Mumbai are more inclined towards organized outlets with 261 respondents confirming yes as their visit and 237 male respondents confirming of their visit. It was also seen that about 225 respondents, denied their visits to organized outlets and in this category it was male population with 132 respondents who outnumbered female population with 93 numbers. Table 5.15 Frequency of the Visit as per Gender Wise Sr.No. 1 2 3 4 Frequency of visit Up to 25% Up to 50% Up to 75% Up to 100% Sex Male Female Total Respondents Total Respondents Total Respondents Total Respondents Total
Total 118 244 124 12 498
47 129 52 9 237
71 115 72 3 261
Graph 5.15 Frequency of the Visit as per Gender Wise
Graph 5.15
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The researcher was keen in knowing the frequency of the visits made by the respondents, Table 5.15 and Graph 5.15 shows the results, when both male and female respondents were questioned about their frequency of visit around 244 respondents confirmed it to be about 50 percent with male (129 ) outnumbered female (115). Further 124 respondent confirmed their frequency up to 75 percent in this category it was female (72) who outnumbered male (52). This analysis made by the researcher therefore shows that with the development of malls in Mumbai region the frequency of visits by both male and female have increased. Table 5.16 Preference of visit to organized retail outlets as per Age Sr.No. Preference Age 15-25 1 Yes Total Respondents Total Respondents 25-35 35-45 45-55 > 55 Total
224
149
79
39
498
No
144 368 100%
44 193 100%
14 93 100%
18 57 100%
5 12 100%
225 723 100%
Total
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Graph 5.16 Preference of visit to organized retail outlets as per Age
The researcher further made an attempt to understand the preferences made by the respondents as per age Table 5.16 and Graph 5.16 shows that in all 723 respondents were surveyed and 498 respondent gave an affirmative response of visiting the organized retail outlets it has also been absorbed that respondents of all the age group are inclined towards organized retail outlets but the young respondents in the age bracket 15 to 25 (224) and 25 to 35 (149) are maximum who visit the outlets and respondents above the age bracket 55(7) hardly do visit the outlets, this shows the Mumbai with young generation is slowly moving towards change. It was also seen that about 225 respondent, denied their visits to organized outlets and in this category with the consumers in age bracket of 15-25 (144) outnumbering the list.
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Table 5.17 Frequency of the Visit as per Age Wise

Sr. Frequency No. of visit 15-25 1 Up to 25% 2 Up to 50% 3 Up to 75% 4 Up to 100% Total Respondents 77 Total Respondents 100 Total Respondents 41 Total Respondents 6 Total 224
25-35
Age 35-45
Total 45-55 > 55
30
118
74
40
26
244
43
31
124
2 149
3 79
0 39
1 7
12 498
Graph 5.17 Frequency of the Visit as per Age Wise
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Table 5.17 and Graph 5.17 shows the results of survey, when the respondents were questioned about their frequency of visit around 244 respondents belonging to different age group confirmed it to be about 50 percent with maximum respondents being in the age bracket of 15-25 (100), 25-35 (74), 35-45 (40) and 45-55(26) and the lowest being respondent in the age bracket of above 55 (4).Further the response has been move of the respondents in the age brackets of 15-25 (218) and 25-35 (147), this shows that Mumbai has the young generation who are the reason for this change. Change in Buying Behavior due organized retail outlets There was requirement to understand the change in the consumer behavior due to the setting of the organized retail outlets. The researcher also was keen in knowing the impact created by these outlets in a city like Mumbai that keeps accepting the changes gracefully. To understand this researcher concentrated on one category basically namely gender wise and while doing so she tried to find out the frequency also. Table 5.18 Change in Buying Behaviour as per Gender
Sr.No. Response Male Yes, very much Yes, to some extent No not at all Total Respondents Total Respondents Total Respondents 207 138 24 369
Sex Female 93 232 29 354 Total 300 370 53 723
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Graph 5.18 Change in Buying Behaviour as per Gender
Table 5.18 and Graph 5.18 give a clear analization of the changing buying habit of consumers. Total 300 respondents were of the opinion that due to organized retail outlets their behavior has changed very much with male respondents (207) outnumbering female respondents (93). Further 370 respondents were of the opinion that their behavior has changed but to some extent with female respondents (232) being more than male (138). Around 53 respondents were of the opinion that their behavior is stable and there has been no change. Table 5.19 Frequency in Change in Buying Behaviour as per Gender
Sr.No 1 2 3 4 Response 25% 50% 75% 100% Total Respondents Total Respondents Total Respondents Total Respondents Total
Sex Male 144 148 47 6 345 Female 95 185 45 0 325 Total 239 333 92 6 670
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Graph 5.19 Frequency in Change in Buying Behaviour as per Gender
Table 5.19 and Graph 5.19 give the frequency of the changing behavior. The respondents agreed that this shift in the buying behavior is due to the offers and facilities being given by them. The researcher also tried to find the frequency in this change in behavior the result is with 333 respondents responding to 50 percent with male (148) and female (185). The result also showed that there are few respondents numbering to 53 who felt that the development of these organized retail outlets have not changed their buying behavior. Changes in Buying Behavior Organised retail outlets resulting in Impulsive Purchases There is a general assumption that the malls attract people and even when they go for window shopping they end up in making impulsive purchases. The researcher therefore wanted to test this on the basis of the following parameters and categories. Since the researcher wanted to have a clear idea about the impulsive purchases with respect to annual family income and age group wise.
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Table 5.20 Impulsive purchases in Organised Retail Outlets as per Annual Family Income
Sr No 1 2 3 4 Strongly Agree Agree Disagree Strongly Disagree Total Respondents Total Respondents Total Respondents Total Respondents Total
Annual Family Income 1-3 Lakh 49 135 74 31 289 3-5 5-7 Lakh Lakh 13 124 30 11 178 7 25 21 21 74 7-9 Lakh 5 18 15 11 49 10 & above 7 21 48 57 133 Total
81 323 188 131 723
Graph 5.20 Impulsive purchases in Organised Retail Outlets as per Annual Family Income
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On the basis of table 5.20 and graph 5.20 it showed out of 723 respondents, 81 respondents belonging to all the income bracket strongly agreed that due to organized retail outlets they have become impulsive in making their purchases with 49 respondent belonging to 1-3 lakh income bracket. It is also seen that 323 respondents agree to the shift in their purchases. Further 188 and 131 responded strongly disagree with this statement. This shows that there is a mixed feeling about the impact of organized retail outlets on their behavior. Impact on purchases in Organised retail outlets due to offers Table 5.21 Impact on purchases in Organized Retail Outlets as per Marital Status
Sr.No 1 2 3 4 Strongly Agree Agree Disagree Strongly Disagree Total Respondents Total Respondents Total Respondents Total Respondents Total
Marital Status Married Unmarried 50 193 39 4 286 86 267 83 1 437
Total 136 460 122 5 723
Graph 5.21 Impact on purchases in Organized Retail Outlets as per Marital Status
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On the basis of table 5.21 and graph 5.21 shows impact of purchases from organized retail outlets due to offers as per marital status. It showed out of 723 respondents, 136 respondents belonging to married and unmarried category strongly agreed that due to organized retail outlets offer they have become impulsive in making their purchases with 460 in total simply agree to the fact that offers change their purchasing habits. It is also seen total 353 unmarried respondents agree that due to festive offers they visit organized retail outlets. Further 127 respondents disagree to the statement that it is not due to offers that they visit organized retail outlets. This shows that there is a mixed feeling about the impact of organized retail outlets on their behavior. 5.7 Summary of the Primary Survey
The researcher conducted a summary of the study to find out the reaction of the modern consumer. The result researcher distributed in to different categories they are: a. Development of malls Supermarket and Hypermarkets in the future in India Middle class Indians have broken off their love of traditional standalone Indian stores that have no air conditioning, organized parking and other public amenities. It is found that malls throughout the country are getting bigger as they are now being positioned as a onestopshop for shopping, entertainment, leisure and eatingout needs rather than a place only for shopping for fashion / luxury products. The fast growing middle class population, the rise in women workforce and consumerism over the decade were the major forces in driving demand in the retail sector. To justify the above fact the researcher conducted research and came up with the following results that are put up in a tabular form.
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Table 5.22 Development of Malls Supermarket and Hypermarkets in the future in India as per Age
Sr. No Options Age 15-25 1 2 3 4 Strongly Agree 104 Agree 233 Disagree 28 Strongly Disagree 3 Total 368
25-35 47 139 6 1 193
35-45 27 63 2 1 93
45-55 13 38 5 1 57
> 55 4 6 2 0 12
Total 195 479 43 6 723
Graph 5.22 Development of Malls Supermarket and Hypermarkets in the future in India as per Age
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As shown in Table 5.22 and Graph 5.22, approximately 195 respondents belonging to different age group strongly agreed that that malls have good future in India further 479 just agreed that this is possible to happen, but 43 respondents felt that in India malls and hypermarkets will not survive. The result further shows that it is the respondents in the age bracket of 15-25 (377), 25-35 (186) and 35-45 (90) have a strong feeling that soon India will have predominantly many malls and hypermarket. Table 5.23 Development of malls Supermarket and Hypermarkets in the future in India as per Gender
Sex 1 2 3 4 Strongly Agree Agree Disagree Strongly Disagree Total Respondents Total Respondents Total Respondents Total Respondents Total
Male 67 270 29 3 369
Female 128 209 14 3 354
Total 195 479 43 6 723
Graph 5.23 Development of malls Supermarket and Hypermarkets in the future in India as per Gender
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Malls, supermarkets, hypermarkets will grow and succeed in India in the future. Table 5.23 and Graph 5.23 shows according to Marital status 674 respondents interviewed under this category stated unanimously that the growth of malls supermarkets and hypermarkets will grow in the future around 43 respondents felt that there would be no impact. Further bifurcation showed that unmarried respondents had strong feeling that the future could be seen more with mall jungles. As per the research the following conclusion has been drawn on the popularity and future of mall in Mumbai city. To the present generation, shopping means much more than a mere necessity and malls are now fast becoming image benchmarks for communities. The following highlights of the shopping malls explicate why they have become so popular amongst the Indian bourgeoisie. 1. All-in-one stores With everything from groceries and vegetables to footwear, clothes, cosmetics, furnishings and electrical items available under one roof, a growing Indian middle class with higher disposable incomes is heading for the malls in droves. For some, it is a way to chill out on movies and food in the added comfort of a fully air-conditioned space. In short, it is a living room for most of them. 2. The malls are another sign of the new, prosperous India, of call centers, outsourcing and more disposable income, of fashionable young people who look as though they belong on MTV. Although much of rural India remains in deep poverty, many urban Indians are becoming richer. 3. Middle class Indians can shop at stores selling U.S. brands, which they could only dream of, a few years back. But they also can buy expensive pillows from Indian stores, statues of Hindu gods and fancy outfits, from the same place. They can watch movies, eat Indian street food, Italian pasta, American snack food, from the food courts or have their pictures plastered on Coca-Cola cans at a promotional stand. At night they can dance and drink alcohol in the malls swanky nightclubs, also relatively new in India.
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a) Organized Retail Outlets have negative impact on Unorganized Outlets The development of organized retail outlets raised a question regarding it negative impact on the unorganized retail outlets. The researcher tried to analyze this with respect to following two categories i. ii. On the basis of Annual family income On the basis of Gender Table 5.24 Impact on Unorganized outlets (Income Wise)
Sr.No Response 1-3 Lakh 1 2 Yes No Percentage 47% Percentage 53% 100%
Annual Family Income 3-5 5-7 7-9 Lakh Lakh Lakh 31% 69% 100% 80% 20% 100% 63% 37% 100%
10 & above 89% 11% 100%
Total 55% 45% 100%
Graph 5.24 Impact on Unorganized outlets (Income Wise)
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Table 5.24 and Graph 5.24 shows the result of analysis, when researcher took the category of annual family income to understand the impact of organized outlets on unorganized outlets to this 55 percent of respondent felt that organized outlets have a negative impact on unorganized outlets majority of the respondents fell into the income slab of 10 and above (89 percent) followed be 5-7 lakh (80 percent). Accordingly 45 percent expressed negatively to this question to this maximum response coming from 3-5 lakh (69 percent) followed by 1-3 lakh (53 percent) income slab. This shows that respondents at higher income slab believe that organized retail outlets have affected negatively to the unorganized retail outlets but the lower income slab had a different opinion. Table 5.25 Impact on Unorganized outlets (Gender Wise)
Sr.No 1 2 3 Yes No Total Response Male 174 195 369 Sex Female 225 129 354 Total 399 324 723
Graph 5.25 Impact on Unorganized outlets (GenderWise)
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Table 5.25 and Graph 5.25 shows the figures on the basis of gender it was seen out of total respondent of (723), 399 gave positive reply, the maximum respondent were female (225) and around (175) males and 324 respondents were of the opinion that organized retail outlets have no impact on the unorganized outlets. This shows that in Mumbai the consumers tilt towards those outlets who provide them good and satisfying services. But again the results show that large number of respondents felt that organized retailers are definitely creating an impact on the growth and sustainability of unorganized retailers. It is also suggested that if unorganized sectors does not change their traditional outlook they will not be able to sustain the competition created by organized retailers in the future. Impact on average spending due to malls The organized retails or malls the moment it is heard a feeling comes up that there would be huge impact on the average spending to an extent that it will cross the limit and shatter the entire budget. To find out the reality the researcher took up certain products categories like food and grocery, readymade garments, health and beauty products, furniture and electronics goods. The researcher also wanted to analyze this on the basis of different category to which the respondent belongs to. Change in consumer behavior with respect to select product categories Food and Grocery With the change in culture and tradition the perspective of the consumers also started changing with respect to their purchases of selected goods. There has been a confusion of consumers preference in organized and unorganized outlets while making purchases of certain essential and selected products. To understand this respondent picked up the following product categories and conducted a research on the basis of marital status and employment status.
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Table 5.26 Customer Behavior towards Food and Grocery as per marital status
Sr.No 1 2 Catogory Malls/Supply chain 119 Unorganized Retail shop 167 Total 286
Marital Status Married Unmarried 193 244 437
Total 312 411 723
Graph 5.26 Customer Behavior towards Food and Grocery as per marital status
Table 5.26 and Graph 5.26 show the result of the survey that the researcher conducted to find out shift in consumer behavior while purchasing food and grocery. 411respondents weather married or unmarried preferred unorganized retail outlets while purchasing food and grocery item in this category unmarried respondent (244) are maximum as compared to married (167). 312 respondents prefer organized outlets with 119 married respondents and 193 unmarried. In both the categorized it is unmarried respondents who outnumbered married respondents. This shows that Indian consumers for essential commodities still prefer unorganized outlets rather than organized outlets.
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Table 5.27 Customer Behavior towards Food and Grocery as per Employment Status
Sr. Category No 1 Malls/ Supply chain 2 Unorganized Retail shop Total Self Employed Service Business Retired 25 147 28 25 Not Employed Currently 68 Housewife 19 312
37 62
184 331
36 64
26 51
101 169
27 46
411 723
Graph 5.27 Customer Behavior towards Food and Grocery as per Employment Status
Table 5.27 and Graph 5.27 provides a overview of the fact that people belonging to different employment status in Mumbai have a mixed response towards organized and unorganized outlets in purchasing food and grocery items. 411respondents belonging to any employment status preferred unorganized retail outlets while purchasing food and grocery item in this category respondent belonging to service class (184) are maximum as compared to followed by respondent who are not employed currently (101). 312 respondents prefer organized outlets again with respondents belonging service class (147) being maximum. This shows that Indian consumers belonging to service class who have regular income therefore shuffle
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between both organized and unorganized to balance their income and at the same time meet the requirement for essential commodities. Readymade Garments As the modern era started moving there has been continuous change in consumer behavior with regards to purchase of readymade garments. The researcher in order to find this change considered two categories marital status and employment status. Table 5.28 Customer Behaviour towards Readymade Garments as per Marital Status Sr.No Preferences 1 2 Malls/Supply chain Unorganized Retail shop Marital Status Married 45% 55% 100%
Unmarried 48% 52% 100%
Total 47% 53% 100%
Graph 5.28 Customer Behaviour towards Readymade Garments as per Marital Status
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Table 5.28 and Graph 5.28 Shows that respondent whether married unmarried prefer buying Readymade garments from unorganized outlets with 53 percent respondent opting for it and 55 percent of married respondents preferring to buy readymade garments from the unorganized outlets rather than visiting organized retail outlets and 52 percent of unmarried respondents. Whereas 47 percent of respondents opted for the Malls, with 45 percent of married respondent and 48 percent of unmarried. This shows that in Mumbai still it is the unorganized outlets that are popular with maximum people. Table 5.29 Customer Behaviour towards Readymade Garments as per Employment Status
Employment Status Sr.No Preferences Self Not Employed Service Business Retired Housewife Employed Currently Malls/Supply 1 chain 44% 46% 47% 43% 50% 50% Unorganized Retail shop Total
47%
57% 100%
54% 100%
53% 100%
57% 100%
50% 100%
50% 100%
53% 100%
Graph 5.29 Customer Behaviour towards Readymade Garments as per Employment Status
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Table 5.29 and Graph 5.29 portraits the preference of respondents of different Employment status in purchasing readymade garments. 53 percent respondents of all occupation preferring unorganized outlets and 47 percent of respondents preferring to buy readymade garments from the organized outlets. Electronics Electronics is the new field that is developed and slowly the impact is growing. There has been a belief that the growth of organized retail outlets are pulling the consumers toward them. The researcher in order to find this change conducted a research on the basis of two categories marital status and employment status. Table 5.30 Customer Behaviour towards Electronics As per Marital Status
Sr.No 1 2 Preferences Malls/Supply chain Unorganized Retail shop Total
Marital Status Married Unmarried 67 219 286 104 333 437
Total 171 552 723
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Graph 5.30 Customer Behaviour towards Electronics as per Marital Status
Table 5.30 and Graph 5.30 Shows 552 respondents whether married unmarried prefer buying electronics from unorganized outlets and 171 prefer it from the malls, further the researcher compared the preference between married and unmarried it is analyzed that as compared to married (219) it is unmarried (333) opting for maximum purchase from the unorganized retail. Therefore it can be concluded by the research that the consumers in Mumbai make purchases of electronic goods from both organized and unorganized outlets as per the best offer available. Table 5.31 Customer Behaviour towards Electronics as per Employment Status
Sr. No Options Employment Status Not Self Employed HouseEmployed Service Business Retired Currently wife 1 2 Malls/Supply chain Unorganized Retail shop Total 13 49 62 78 253 331 16 48 64 8 43 51 45 124 169 11 35 46 171 552 723 Total
284
Graph 5.31 Customer Behaviour towards Electronics as per Employment Status Table 5.31 Graph 5.31 of Employment wise bifurcations again shows the preference of unorganized sector with 552 respondents of all occupation preferring unorganized outlets and with 253 respondents from service section toping the table followed by 124 respondents who are not employed (students and housewives). This shows as for as electronic goods are concern it is still the unorganized sector that is popular in Mumbai. Furniture Furniture industry has been growing gradually and changing according to the requirement of the consumers. There has been a belief that the growth of organized retail outlets are pulling the consumers toward them. By giving good offers and preferences. The researcher in order to find this change considered two categories marital status and employment status.
285
Table 5.32 Customer Behaviour towards Furniture as per Marital Status S.No 1 2 Preferences Malls/Supply chain Unorganized Retail shop Total
Marital Status Married 157 129 286 Unmarried 230 207 437
Total 387 336 723
Graph 5.32 Customer Behaviour towards Furniture as per Marital Status
Table 5.32 and Graph 5.32 Shows 387 respondents whether married unmarried prefer buying furnitures from organized outlets and 336 prefer it from the unorganized outlets, further compared to married (157) it is unmarried (230) who visit the malls maximum and prefer purchasing furnitures from organized retail outlets.
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Table 5.33 Customer Behaviour towards Furniture As per Employment Status

Sr.No Preferences Employment Status Self Not Employed Employed Service Business Retired Currently 34 28 62 178 153 331 31 33 64 30 21 51 88 81 169
Housewife 26 20 46
Total 387 336 723
Malls/Supply chain Unorganized Retail shop
Graph 5.33 Customer Behaviour towards Furniture as per Employment Status
Table 5.33 Graph 5.33 of Employment wise bifurcation again shows the preference of organized sector with 387 respondents of all occupation preferring organized outlets and with 336 respondents from unorganized sectors. It is the service section with 178 respondents opting for the malls followed by 88 respondents who are not employed (students and housewives). This shows as for as for as furnitures are concern the buying behavior of the consumers have changed with onset of the malls.
287
5.8
Testing of the Hypotheses
Hypothesis 1 For testing this hypothesis the researcher calculated this on the basis of parameter related to the gender which specified the maximum inflow of customers gender wise in Mumbai. Chi Square test is used on the various primary survey and the results have been put up in the tabular form given below: Ho: Malls are patronized equally by males and females. H1: Malls are patronized more by females than by males.
Table 5.34 Hypotheses testing Showing consumer visit as per gender wise. Visit Mall Yes No Total Sex Male 260(70.5%) 109(29.5%) 369(100.0%) Female 314(88.7%) 40(11.3%) 354(100.0%) Total 574(79.4%) 149(20.6%) 723(100.0%)
Source: Analyzed from primary data.
Table 5.35 Chi-Square Test showing visit of respondents to the malls Asymp. Sig. (2sided) .000 .000
Pearson Chi-Square Continuity Correction(a)

Source: Statistical analysis of primary data.
Value 36.738(b) 35.631
df 1 1
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Chi Square test is applied to verify the difference between males and females and according to Table 5.34 and Table 5.35 it is concluded that it is women who patronize more to mall with 314 (88.7 percent) females giving positive reply and 260 (70.5 percent) male respondents saying yes to visit the malls. The Chi Square result shows the P-value as 0.000 which is much less than 0.05. Thus Null hypothesis that malls are patronized equally by males and females stands rejected. We conclude that Malls are patronized more by females than by males. Therefore the hypothesis stands authentic and it is proved.
Hypothesis 2 There was an assumption that most of the men in Mumbai feel that due to malls their buying behavior changed. For testing this hypothesis the researcher took parameter on the basis of gender which specified the change in behavior in the course of time. Chi Square test is used on the various primary survey and the results have been put up in the tabular form given below: Ho: Men and to women feel equally that the development of organized retail outlets has changed their buying behavior. H1: Compared to women more men feel that the development of organized retail outlets has changed their buying behavior.
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Table 5.36 Change in Consumer Behavior due to O.R S.No Response Sex Male 1 2 3 Yes, very much Yes, to some extent No not at all Total
Source: Analysed from primary data.
Total Female 93 (26.3%) 232 (65.5%) 29(8.2%) 354(100%) 300 (41.5%) 370(51.2%) 53(7.3%) 723(100%)
207 (56.1%) 138 (37.4%) 24 (6.5%) 369(100%)
Table 5.37 Chi Square Test showing frequency in change in consumer behavior due to O.R Value Pearson Chi-Square 67.391(a) df 2 Asymp. Sig. (2-sided) .000
Source: Statistical analysis of primary data.
Chi Square test is applied to calculate that male or female who felt more that development of organized retail outlets have changed their buying behavior. From Table 5.36 and Table 5.37 it is concluded that it is 207 (56.1 percent) and 138 (37.4 percent) male respondent who were affirmative in stating that malls have changed their buying behavior female with 232 (65.5 percent ) were of the opinion that mall development to some extent has changed their buying behavior. To this result Chi Square gives an indication of expected count less than 5 and the P- value shows the asymp as .000 which is much less than the expected resulted. Thus Null hypothesis that men and women feel equally that the development of organized retail outlets has changed their buying behavior stand rejected. We conclude that compared to women more men feel that the development of organized retail outlets has changed their buying behavior. Therefore the hypothesis stands authentic and it is proved.
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5.9
Conclusion
Consumers, who are as news aware as marketers, were conscious of the muchreported down turn in consumer spending. News shows and newspapers were not shy in telling us about the slump in high street spending and the drop in profits at major retailers across the world. And it did not go unnoticed, either through personal experience or the media, that India is a nation in a growing amount of debt, factors that have unarguably shaped retail spending. Organized retailing has so far remained confined primarily to the urban markets in the country by relating to the changing paradigm of consumer behavior in the urban areas, especially, metros and big cities. There are a number of reasons for this kind of development. However, most importantly, organized retailers are yet to feel the saturation effect in urban markets and have, therefore, probably not paid enough attention to the other markets. Secondly, modern retailing, despite its cost-effectiveness, has come to be identified with lifestyles particularly the affluent one, thereby excluding an important and larger segment of consumers. In fact, in order to appeal to all classes of society, organized retail stores would have to identify with different lifestyles and socioeconomic strata and respond to their respective requirements and shopping patterns. To some extent, this trend is already visible with the emergence of stores with an essentially 'value for money' image. Consumer expectations are very high from the organized retail stores and such expectations have also rubbed off on the conventional retailers. While insisting on value for money and cost effectiveness, today consumers want a better shopping experience, recreation, friendly interactions and a wide choice of products and services. Retail stores have to live up to these expectations in order to flourish, prosper and grow in the Indian market. The retailer in order to satisfy customer needs must have a thorough understanding of how customers make store choice and purchase decisions. Customers behavior provides some valuable insights into the process and therefore is useful for retail management decision making. It is important to realize that the purchase of product
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involves motivational, social, psychological and economic factors. There are also important stages involved in the purchase process and the type of purchase and the users of the purchase that will affect the buying behavior. The survey was a small attempt made by the researcher to find out the views of the respondents in Mumbai on the growth of mall culture and its likely impact on the society. The analysis of the data proves that: a. Optimum about economic development of India is fueling the expansion of retail market in the country with steady entry of both Indian corporate would as well as global retail companies in organized retail section with different retail models. b. The researcher shows that there is gradual shift in consumer behavior. The consumer of today has gradually drifted away from the thought of saving for the future and steadily adopting the thought of comfortable life at affordable price. c. There has been an observation that gradually young generation is becoming more enthusiastic. They have been willing to accept change, willing also to experiment with the new concepts, products, services. Therefore it is said that it is young India. d. The analysis clearly stated that no matter what offers or changes the malls can bring with food and grocery sections yet the major crowd puller till date are the unorganized sector.
Retail customers also need to understand the variety of levels 1. They are problem solvers deciding on what offer satisfies their needs. All retail activities and promotions should therefore aid the consumer to make a decision.
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2. Consumers seek to reduce the risk of their purchase. Retailers need to provide information, guarantees and after sales services to reduce the perception of risk. 3. Consumers will go shopping for a variety of reasons. The complexity of the shopping trip should be clear to the retail staff. 4. There are number of demographic and other changes which are having an impact on the patterns of purchasing and consumption.
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Chapter 5

Rationale of Consumer Behavior in Organized Retail Outlets

Factors Affecting Consumer Decision Making

Indian Retail Sector and Changing Consumer Behavior

Retail Consumer Behavior and Role of Services in Retailing

Theories of Consumer Behavior

Primary Data Analysis of Dimension of Consumer Behavior

Summary of the Observation

Testing of the Hypotheses

Rationale of Consumer Behavior in Organized Retail Outlets

Figure 5.1 Consumer Behavior Model in Changing Retail Scenario

Factors Influencing the Behavior of the Consumer

Source: Compiled from Primary data.

Graph 5.1 Organized Retail outlets and change in consumer behavior

Stage of the Family Life Cycle

Figure 5.2 Customers decision making process

Figure 5.3 Dimensions of Situational Influence

Retail Customer Behavior and Role of Services in Retailing

Theories of Consumer Behavior

Primary Survey of Consumer Behavior

Source: Compiled from Primary data.

Graph 5.2 Employment Status of the respondents

Respondents 289 178 74 49 133 723

Percent 40.0 24.6 10.2 6.8 18.4 100.0

Graph 5.3 Annual Income of the respondents

264 165 86 52 7 574

Graph 5.4 Visit to Organized retail outlets as per age group

Sr.No Response 1. 2. Yes No

Sex Female 314 40 354

Total Male 260 109 369

Source: Compiled from Primary data.

Graph 5.5 Visit to Organized retail outlets as per Gender

Source: Compiled from Primary data.

Total 33 27 184 264 66 574

Graph 5.7 Visits to Organized Retail Outlets as per Marital Status

Table 5.8 Products Preferred

Response 85 33 485 42 78 723

Percent 11.8 4.6 67.1 5.8 10.8 100.0

Source: Compiled from Primary data.

Graph 5.8 Products Preferred

Graph 5.9 Products Preferred as per Age

Table 5.10 Products preferred as per Annual Family Income

Annual Family Income 3-5 5-7 7-9 Lakh Lakh Lakh 34 4 3

Graph 5.10 Products preferred as per Annual Family Income

Marital Status Married Unmarried 33 9 208 0 36 286 52 24 277 42 42 437

Total 85 33 485 42 78 723

Graph 5.11 Products preferred as per Marital Status

Yes, Higher spending Yes, Lower spending No Total

Source: Compiled from Primary data.

Graph 5.12 Impact on Budgetary Spending as per Employment Status

No Yes, Lower spending

22 6 36 65 19 15 28 50 100 150 200 104 162

Yes, Higher spending

Table 5.13 Impact on Budgetary Spending as per Annual Family Income

Total 10 & above

151 212 723

Graph 5.13 Impact on Budgetary Spending as per Annual Family Income

Sex Female 261 93 354 Total 498 225 723

Source: Compiled from Primary data.

Total 118 244 124 12 498

Graph 5.15 Frequency of the Visit as per Gender Wise

144 368 100%

225 723 100%