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CHAPTER 5
SUMMARY OF FINDINGS, SUGGESTIONS AND
CONCLUSION

5.1

FINDINGS

5.1.1

From the opinion of retailers

5.1.1.1

ANOVA analysis
The following are the findings obtained by employing ANOVA test

to the selected independent variables of the retailers viz. location, age,

experience, educational qualification, annual income, type of business, period
of running the store & type of store and their level of performance in utilizing
the marketing strategies in the study area.
From the analysis, it is inferred that the maximum level of
performance in utilizing the marketing strategies is attained by
the retailers who are located at Chennai. It is identified from
Anova analysis that there is a significant difference between the
location and between the marketing strategies in terms of
retailers responses.
As far as the age of the retailers is considered, it is inferred that
the maximum level of performance in utilizing the marketing
strategies is attained by the retailers who are 40 years and
below. It is discovered from the Anova analysis that there is no

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significant difference between the age groups and between the

marketing strategies in terms of retailers responses.
Regarding the retailers experience, the maximum level of
performance in utilizing the marketing strategies is perceived by
those who have an experience of 10 years and below. It can be
recognised from Anova analysis that there is no significant
difference between the experience and between the marketing
strategies in terms of retailers responses.
Reflecting upon the retailers educational qualification, it is
identified that the maximum level of performance in utilizing
the marketing strategies is acknowledged by the retailers who
are educated at college level. It is explored from Anova analysis
that there is no significant difference between the educational
qualification and between the marketing strategies in terms of
responses.
Pertaining to the annual income of the retailers, it is found that
the maximum level of performance in utilizing the marketing
strategies is accomplished by the retailers who earn above Rs. 1
crore annually. Hence, it is clear from the Anova analysis that
there is no significant difference between the annual income and
between the marketing strategies in terms of responses.
Regard the type of business the retailers have adopted, the
maximum level of performance in utilizing the marketing
strategies is procured by the retailers who are involved only in
retail business. From Anova analysis it is confirmed that there is
no significant difference between the type of business and
between the marketing strategies in terms of responses.

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It is explicitly encountered that the maximum level of

performance in utilizing the marketing strategies is reached by
the retailers who run their store for 11 to 20 years while
considering the period of the running the retail store. It is
acknowledged from Anova analysis that there is no significant
difference between the period of running the store and between
the marketing strategies in terms of responses.
While concerning the type of retail store preferred by the
retailers, it is ascertained that the maximum level of
performance in utilizing the marketing strategies is observed by
the retailers who run departmental store. From Anova analysis,
it is evident that there is no significant difference between the
retailers type of store and there is a significant difference
between the marketing strategies in terms of responses.
5.1.1.2

Percentage analysis
With the help of percentage analysis the majority of the retailers

perceptions on the various aspects of the retail business are signified. The
following are the results obtained.
100.0% of the retailers sell grocery items, FMCG (food items)
and FMCG (non-food items) in their store.
74.0% of the retailers avail financial support for their business.
Out of this 74.0%, 81.1% of them get bank loans.
56.0% of the retailers prefer to have a free standing store.

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50.0% of the retailers are of the view that the finance

availability is the important factor in choosing the store
location.
According to 60.0% of the retailers, issuing coupon is the most
important retail promotion strategy to counter competitors
strategies.
62.0% of the retailers have an exclusive website for their store.
The grid layout is adopted to their store by 54.0% of the
retailers.
54.0% of the retailers store is established at the size of 5001 to
10000 sq. ft.
1001 to 5000 sq. ft. is the size of the storage/warehouse
occupied by 58.0% of the retailers.
60.0% of the retailers have up to 50 employees in their store.
44.0% of the retailers admit that above 1000 customers visit
their store on a week day.
Around 501 to 1000 customers visit the store on a weekend,
according to 52.0% of the retailers.
78.0% of the retailers maintain customer database and out of
this 78.0%, 89.7% of the retailers maintain the details of
transactions in their database.
82.0% of the retailers have implemented ERP package in their
store. Among this 82.0% of the retailers, 73.2% of them use
SAP package.

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Fruits and vegetables are sold in their store by 72% of the

retailers. Subsequently, 94% of the retailers dispose the unsold
ripened fruits and vegetables after entering in dump register.
56% of the retailers determine their sales of the product based
on sales per sq. ft.
100% of the retailers offer facilities and services like
POS/computerised billing, credit card machine, scanning/bar
coding and signage to locate and identify merchandise.
74% of the retailers develop CRM programs in their store.
56.0% of the retailers consider surveying customers after
transaction is highly important to reduce service gaps through
which the retailers may know what the customers want.
64.0% of the retailers believe that the role of service providers
is defined clearly is important to reduce service gaps by setting
service standards.
74.0% of the retailers regard providing incentives to motivate
employees is important to reduce service gaps by meeting and
exceeding service standards.
70.0% of the retailers recognize that realistic commitments is
important in reducing service gaps by communicating the
service promise.
66% of the retailers agree that they must be aware of the
government policies that influence retail business in order to get
exposed to the market trends and to deal with the competitors.

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5.1.1.3

Henry Garrett Ranking

Henry Garrett Ranking technique is used to rank the retailers

preference on different aspects of the study. The results obtained are furnished
below.
The cost effective promotion and marketing and to facilitate
CRM are the benefits attained from their websites according to
the majority of the retailers.
The majority of the retailers perceive space management and
visual merchandising as the most important elements of the
store environment.
The majority of the retailers determine keeping store ambience
and in store staking as the important functions of the store.
It is derived that product knowledge and communication skills
are the important skills required for a sale staff according to the
majority of the retailers.
The majority of the retailers accord services like accuracy of
billing and meeting promised delivery dates are expected from
them by their customers.
Promptness and courtesy of response and accessibility of
complaint management staff are the key ingredients in effective
complaint management which is confirmed by the majority of
the retailers.
It is brought to light by the majority of retailers that they face
the problems of shortage of retail location and infrastructure and
shortage of retail space in their business.

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The majority of the retailers acknowledge inventory storage

control and buying merchandise and shipping merchandise are
the important functions that deal with the stores merchandise.
The majority of the retailers spotlight that target market and
demand and store policies as the important factors that affect the
retail pricing.
Pricing merchandise and setting prices are the important factors
of retail pricing to which the majority of the retailers attach their
importance.
To encourage repeat purchases and to encourage larger
purchases are considered as the most important reasons for retail
sales promotions by the majority of the retailers.
The majority of the retailers remark total space availability and
number of departments in the store are the influencing variables
of the store layout.
Recruiting employees and training employees are the important
human resource functions in retail business as approved by the
majority of the retailers.
The majority of the retailers signify special customer services
and frequent shopper programs as the important CRM programs
for customer retention.
Employing committed, knowledgeable employees and through
customer loyalty are the important methods of developing
sustainable competitive advantage as acknowledged by the
majority of the retailers.

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The majority of the retailers confirm that greater efficiency and

performance and improved CRM are the advantages enjoyed by
them after implementing ERP package.
5.1.2

From the opinion of consumers

5.1.2.1

Chi-Square analysis
The following are the findings obtained by applying Chi-Square

analysis to the selected independent variables of the consumers viz. location,

age, gender, marital status, educational status, occupational status, annual
income, family size, type of family, period of purchase, type of store,
frequency of visit, amount spent for purchase & mode of purchase and their
level of satisfaction towards the organised retail stores.
Regarding the location of the consumers, it is inferred that the
maximum level of consumer satisfaction towards the organised
retail stores is perceived by the consumers who belong to
Tiruchirappalli. The result of chi-square test proved the result at
1 per cent level of significance association.
Regarding the age of the consumers, it is discovered that the
maximum level of consumer satisfaction is attained by the
consumers who belong to the age group 20 years and below.
The result of chi-square test proved the result at 1 per cent level
of significance association.
As far as the gender is considered, it is concluded that the
female consumers acquire the maximum level of consumer
satisfaction in utilising the organised retail stores than the male

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consumers. The result of chi-square test proved the result at 1

per cent level of significance association.
The maximum level of satisfaction towards the organised retail
stores is acquired by the unmarried consumers.
Pertaining to the educational qualification, it is identified that
the maximum level of satisfaction is obtained by the consumers
who are professionals. The result of chi-square test proved the
result at 1 per cent level of significance association.
While considering the occupational status, the maximum level
of satisfaction is perceived by the consumers who are
agriculturists. The result of chi-square test proved the result at 1
per cent level of significance association.
The maximum level of satisfaction towards the organised retail
stores is remarked by the consumers whose annual income is
Rs.1,00,000 and below. The result of chi-square test proved the
result at 5 per cent level of significance association.
The maximum level of satisfaction towards the organised retail
stores is observed by the consumers who have up to 3 members
in their family. The result of chi-square test proved the result at
1 per cent level of significance association.
The maximum level of satisfaction is accomplished by the
consumers of nuclear family. The result of chi-square test
proved the result at 1 per cent level of significance association.
The maximum level of satisfaction towards the organised retail
stores is obtained by the consumers who have been purchasing

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for more than 15 years. The result of chi-square test proved the
result at 1 per cent level of significance association.
The maximum level of satisfaction towards the organized retail
stores is supposed by the consumers who visit the departmental
stores for shopping. The result of chi-square test proved the
result at 1 per cent level of significance association.
The maximum level of satisfaction towards organised retail
stores is attained by the consumers who visit the store once in
three days. The result of chi-square test proved the result at 1
per cent level of significance association.
The maximum level of satisfaction towards the organised retail
stores is apprehended by the consumers who purchase for Rs
501 to 1000. The result of chi-square test proved the result at 1
per cent level of significance association.
The maximum level of satisfaction towards the organised retail
stores is perceived by the consumers who pay by cash directly
while purchasing. The result of chi-square test proved the result
at 1 per cent level of significance association.
5.1.2.2

Percentage analysis
The percentage analysis facilitates in analysing the majority of the

consumers perceptions on the various aspects of their buying behaviour.

87.4% of the consumers belong to the middle class social status.
38.0% of the consumers are very creative in nature.
42.1% of the consumers are emotional in nature.

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63.1% of the consumers are positive in their attitude.

100% of the consumers are aware of the organized retail
business.
43.7% of the consumers residence is located at a distance of 5
kms and less from the retail store.
99.2% of the consumers prefer buying grocery items while
visiting the retail store.
26.5% of the consumers prefer to go with their spouse for
purchasing at the organized retail store.
53.1% of the consumers use scooter/bike to visit the organised
retail store for shopping.
61.5% of the consumers prefer to pay by cash rather than
through any other modes.
52.4% of the consumers attach their satisfaction towards the
service show that you care.
Among the interior and exterior atmospherics of the retail store,
59.6% of the consumers are satisfied at its colour.
54.9% of the consumers agree that the stores layout makes it
easy for them to find what they need.
59.4% of the consumers are satisfied in utilizing the product
attributes, the wider product range and choice of more variants
offered by the organised retail stores.

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47.0% of the consumers are satisfied at the utilization of the

promotion attribute promotional schemes of the organised retail
stores.
50.0% of the consumers are satisfied towards the utilization of
the price attribute discounts / lesser price of the organised retail
stores.
48.6% of the consumers are satisfied towards the utilization of
the place attribute better ambience of the organised retail stores.
54.0% of the consumers have already switched over from other
organized retail stores. Out of this 54.0%, 35.0% of the
consumers have switched over because of the lack of enough
products and brands
67.4% of the consumers have no idea to switch over from the
store where they are purchasing at present.
5.1.2.3

Henry Garrett Ranking

Henry Garrett Ranking technique is used to rank the consumers

expectation the on different aspects of the study.

The majority of the consumers get to know about the organized
retail stores exclusively through the newspapers and their
friends and relatives.
Availability of all products and variety of brands are the factors
that influence the majority of the consumers to visit the
organized retail store.

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The majority of the consumers point out that store experience

and pricing are the important parameters in measuring the
performance of the organised retail store.
The majority of the consumers evaluate that the displays in the
stores are informative and effective.
The consumers intend to switch over from their present store to
other stores because of poor parking facility and slow checkout.
5.1.2.4

Correlation
The

variables

gender,

marital

status,

educational

status,

occupational status, annual income, family size, type of family, period of

purchase, type of store, frequency of visit and mode of purchase have positive
correlation with the consumers level of satisfaction towards the organized
retail stores.
5.1.2.5

Multiple Regression analysis

The consumers level of satisfaction towards the organized retail

store is positively associated with their gender, marital status, educational

status, occupational status, annual income, family size, type of family, period
of purchase, type of store, frequency of visit, amount spent for purchase and
mode of purchase in the study area.
5.1.2.6

Factor analysis
The factor analytic results depict a completely different structure.

Due to certain inclusions and exclusions in the proposed instrument, the items
were redefined and then relocated under five different factors. The 5-factor
structure model has been constructed (consisting of 18 factors) representing

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customized service, consistency of the store, corporal facet, professional

relationship and cognitive processing and these five factors have a significant
impact on the overall consumers influence towards the organized retail stores
in Tamil Nadu .
5.1.2.7

Structural Equation Model

From the Dinesh-Vikkraman Model, it is inferred that all the

measured variables with respective latent variable of influencing factors have

positive relationship and is also significant at 1 per cent level. The analysis of
this model, from the perception of consumers opinion towards the utilization
of the organized retail store, suggests that all the measured variables are
significantly associated with the product mix variables and these variables are
significantly associated with the utilization of the organized retail store among
the sample respondents in Tamil Nadu. Further, among the selected four
product mix variables, promotion is highly influenced than the other three
variables among the selected sample consumers.
5.2

SUGGESTIONS
Based on the analysis and interpretations, the research offers the

suitable suggestions to improve the performance of organised retail stores.

To inculcate the concept Complaining customer is a
contributing customer, the retailers can have a consumer
feedback system to provide an opportunity for the customers to
lodge complaints. To support this system, the stores can think
about creating toll free numbers for the customers in order to
interact with them.

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The retail stores should provide adequate parking facilities to

retain their customers as most of the stores in Tamil Nadu have
inadequate space for parking. Hence, this leads to the customers
owning vehicles to think about switching over to the competitor
stores that provide better parking facilities.
Today, almost no customer in the supermarket is ready to wait
longer time in the check-out counter for billing. Hence, it is
suggested that organised retail stores can build more number of
checkout counters to speed up the billing process. On the other
hand, the stores could open more checkout counters temporarily
between 1st and 15th of every month to manage huge footfalls
during these days.
With the highest retail density in the world, the customers look
for a local food and grocery retailer very close to their home. It
is justified in the research that every customer expect the store
to be located in a convenient place, as most of them are not
ready to travel more than 5 Km to reach the store. Hence,
organised retail stores are advised to have more number of
neighbourhood store formats.
A fair number of customers are not completely satisfied with the
services i.e. free home delivery, repair services, after sales
service etc. offered by the supermarkets. Rather, they are
satisfied with the convenience of the store and the value for
money spent over there. Hence, the need of the hour is to
introduce the Shoppertainment concept to grab the attention of
today's shoppers.

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Since the unorganized sector in India dominates the industry

because of huge market share, retailers of the organized sector
can concentrate more on promotional activities to increase their
sales and profit through impulse buying behaviour.
Retailers must concentrate on offering more private labels
which enable them to market products at a better price attracting
footfalls to the store. This in turn leads to cutting out the
middlemen and also translates the retail business to better
margins.
Since the penetration of the retailing experience is low in Tamil
Nadu when compared to the other states, the companies must
establish new retail stores in tier-II and tier-III cities and thereby
provide retailing experience.
The retailers must by adopt effective supply chain management;
as well the operating and distribution costs should be kept low
to lower down their product prices.
Supplier maturity in terms of adherence to delivery schedules
and delivering the quantity ordered is an issue requiring greater
consideration.
Supply

chain

and

customer

relations

followed

by

merchandising, facilities management, and vendor development

are the areas that have significant gaps and to fill in these gaps it
is imperative to provide proactive training for the retailers and
their employees.

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5.3

CONCLUSION
Thus, to wrap up, with the opening up of FDI, the global players

like Wal-Mart, Carrefour, Tesco, Target, etc., and the emergence of many
large Indian players like Reliance Retail, Big Bazaar, Spencers, Birla More,
Shri Kannan Departmental Stores, etc., the retail industry is undergoing
several changes. The store size has started to bulge, investments began to perk
up like sky rocket, ambience and skilled salesmen are being pressed into
acquiring a large number of customers as competitions have become
cutthroat. Hence, survival of the retailer, irrespective of size, big or small, has
become difficult. Organised Retail Stores are yet to get the Indian middle
class people and rural consumers in to their fold which may take a very long
time as it is extremely difficult to break cultural and demographic barriers.
Retail is a multi-faceted industry serving market segments carrying diverse
business

needs

and service

requirements.

Forces of

globalization,

consolidation and customization have significantly changed the traditional

retail model. Retailers at present are serious in analyzing these multiple
challenges as they try to maximise their sales and achieve minimum profit
targets.