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Factors Influencing Customer Behavior with Reference to Big Bazaar

CHAPTER #1
INTRODUCTION

1.1.

Introduction to Big Bazaar


Pantaloon Retail India Ltd (PRIL) has emerged as the leading retailer in India with its chain
of Pantaloon, Big Bazaar and Food Bazaar stores. With the right mix of management
capabilities, high growth product profile, well-developed strategy and extensive IT and
logistics capabilities, PRIL has ensured rapid growth. More importantly, while most
organized retailers are struggling to be in black, PRIL has demonstrated a consistent track
record of profitable growth.
Big Bazaar is a chain of shopping malls in India, owned by the Pantaloon Group and which
work on Wal-Mart type economies of scale. They have had considerable success in many
Indian cities and small towns. Big Bazaar provides quality items but at an affordable price.
It is a very innovative idea and this hypermarket has almost anything under one
roof.Apparel, Footwear, Toys, Household Appliances and more. The ambience and
customer care adds on to the shopping experience.

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Factors Influencing Customer Behavior with Reference to Big Bazaar

1.2.

Objectives of the study


Main objective of the study is to find out the buying behavior of the customers coming in to
Big Bazaar. There are some extensive objectives for the study which are listed below.

1.3.

i.

To determine the current status of Big Bazaar.

ii.

To find out the customers response towards Big Bazaar.

iii.

To study the satisfaction level of customers in different attributes of Big Bazaar.

Hypothesis
The hypothesis is a formal affirmative statement predicting a single research outcome, a
tentative explanation of the relationship between two or more variables.
The buying behaviour of the consumers is positively influenced by the schemes and
incentives used by Big Bazaar.

1.4.

Scope of Limitations
Preparation of a project report and concluding a research is a whole process which is
carried out in a number of steps. Therefore throughout the whole process of research there
are a number of difficulties encountered by researcher, at every step. In the present study
we may assume following limitation.
i.

Data dont represent entire population behavior;

ii.

It is very difficult to measure perception by means of mathematical calculation;

iii.

This research was done in Mumbai city only hence this; and

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Factors Influencing Customer Behavior with Reference to Big Bazaar

iv.

It was assumed that respondent have the knowledge of the choice that were given in
the questionnaire and respondent were compelled to choose only from given
alternatives.

The respondent view point on the study/questionnaire purely judgment and may be induced
by other reasons also.

1.5.

Research Methodology
Technology and customers tastes and preferences play a vital role in todays generation.
Research Methodology is a set of various methods to be followed to find out various
information regarding market strata of different products. Research Methodology is
required for every industrial service industries for getting acquire knowledge of their
products.
Sampling Size: The sampling size of the study is 30 users.
Data Collection:
Primary data It is collected for the first time and original in name. During the course of
the data collection, the primary data was collected through direct communication with the
respondents by getting the questionnaire filled from them
Secondary data the secondary data refers to the information or facts already collected and
published. It is the data collected and reported by some sources is accessed and used for the
study. The secondary data is already published data, which is available in:
1) Books, magazines, newspapers, periodicals;
2) Public records and statics, journals;
3) Various publications of the Central and State Government.

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Factors Influencing Customer Behavior with Reference to Big Bazaar

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Factors Influencing Customer Behavior with Reference to Big Bazaar

CHAPTER #2
LITERATURE REVIEW

Big bazaar is the subsidiary of Future Group, Pantaloons Retail India ltd.
It is formed by the C.E.O of future group Mr. Kishore Biyani.
At present, the Future Group comprises various formats and brands like Pantaloons, F123,
Copper Chimney, Etam, Staples, One Mobile, Urbana, Brand Factory, LootMart,
HomeTown and Central. The Big Bazaar has several stores located all over the India,
among that Chennai, Hyderabad, Ahmedabad, Bangalore, Kolkata, Pune, and Mumbai is
those metro cities where the stores of Big Bazaars are located.
Big bazaar open its first store in Kolkota ,west Bengal, India in 2001 allowing people to
buy all the needed items under one roof and this idea became a big hit and as now can be
seen big bazaar captures the market opening more than 100 retail stores in all over India.

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Factors Influencing Customer Behavior with Reference to Big Bazaar

CHAPTER #3
INTRODUCTION TO BIG BAZAAR

3.1.

Company Research
PRIL has chalked out an aggressive expansion plan to increase its retail space to over
1,740,000 sq.ft. over the next two years. Space for additional 4 Pantaloons, 11Big Bazaars
and 2 Food Bazaars has already been finalized, and these would be Operational over the
next two years. PRIL aims to set up over 30 Food Bazaars and is scouting for appropriate
locations for the same.
After popularizing the concept of hypermarket in India, PRIL is now also setting up a new
format shopping mall in the country under the name Central. The format would be on the
lines of a Selfridges in London or a Central Mall in Bangkok. Two malls of 100,000 and
240,000 sq.ft. are being set up in Bangalore and Hyderabad respectively.

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Factors Influencing Customer Behavior with Reference to Big Bazaar

Diversity of product range will ensure profitable volume growth


To achieve better return on retail space, PRIL uses certain product categories as margin
managers and certain product categories to generate traffic. The food and groceries
business will act as key volume growth driver while high share of apparel (which account
for over 80% sales in Pantaloon Stores and 40% in Big Bazaar) will enable PRIL to
maintain high margins. The management has demonstrated its ability to improve stock
turnovers in both the formats successfully, which has enabled significant margin
improvement.

3.2.

Value chain and Competitive edge


PRIL has a completely integrated value chain in apparels from fabric manufacturing to
apparel manufacturing, branding, distribution to retailing. The company controls the total
value chain from yarn to apparel retailing and gives a competitive edge in terms of speed of
delivery; lower inventory carrying costs and better realizations. Also, large part of PRILs
apparel revenues comes from own private labels. PRIL has developed significant
competencies in apparel branding over a period of time and has developed own labels
(John Miller, Shrishti, Bare, Annabelle, AFL) in all the apparel product categories.
Worldwide, private labels give higher margin to retailers than the national brands.
Also growth of private labels is faster as retailer controls shelf space and visibility. Other
initiatives such as faster turnover of stocks by introducing 6 seasons in a year (against 2
earlier) has helped in bringing down inventory levels and at the same time providing wider
choice to customer and improving frequency of customer visits.

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Factors Influencing Customer Behavior with Reference to Big Bazaar

3.3.

Big Bazaar Isse sasta aur accha kahin nahin!!


Big bazaar is the companys foray into the world of hypermarket discount stores, the first
of its kind in India. Price and the wide array of products are the USPs in Big Bazaar. Close
to two lakh products are available under one roof at prices lower by 2 to 60 per cent over
the corresponding market prices. The high quality of service, good ambience, implicit
guarantees and continuous discount programmes have helped in changing the face of the
Indian retailing industry. A leading foreign broking house compared the rush at Big Bazaar
to that of a local suburban train.
Big Bazaar is a chain of shopping malls in India, owned by the Pantaloon Group and which
work on Wal-Mart type economies of scale. They have had considerable success in many
Indian cities and small towns. Big Bazaar provides quality items but at an affordable price.
It is a very innovative idea and this hypermarket has almost anything under one
roof.Apparel, Footwear, Toys, Household Appliances and more. The ambience and
customer care adds on to the shopping experience.

3.4.

Food Bazaar Wholesale prices


Food Bazaars core concept is to create a blend of a typical Indian Bazaar and International
supermarket atmosphere with the objective of giving the customer all the advantages of
Quality, Range and Price associated with large format stores and also the comfort to See,
Touch and Feel the products. The company has recently launched an aggressive private
label programme with its own brands of tea, salt, spices, pulses, jams, ketchups etc. With

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Factors Influencing Customer Behavior with Reference to Big Bazaar

unbeatable prices and vast variety (there are 42 varieties of rice on sale), Food Bazaar has
proved to be a hit with customers all over the country.

3.5.

What is store for you in Big Bazaar?


1,70,000 products at 10-60% disount. At Big Bazaar, you will get: A wide range of
products at 6 60 % lower than the corresponding market price, coupled with an
international shopping experience.
Products available at Big Bazaar
Apparel and Accessories for Men, Women and Children.
Baby

Accessories. Toys

Luggage

Cosmetics

Home

Textiles Linens

Crockery

Home

Needs Sarees

Dress

Materials

Shirting
Electrical
Electronics
Footwear

Suiting

& Household Appliances Stationery


Household

Accessories Hardware
Home Decor

Plastics Utensils
Utilities

&

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Factors Influencing Customer Behavior with Reference to Big Bazaar

3.6.

Food Bazaar
Food Bazaar offers the Indian consumer the best of Western and Indian values. The
western values of convenience, cleanliness and hygiene are offered through pre packed
commodities and the Indian values of "See- Touch- Feel" are offered through the Mandi
atmosphere created by displaying staples out in the open, all at very economical and
affordable prices without any compromise on quality. This satisfies the Indian consumer
and comforts her before making her final buying decision. At other super markets, the
consumer

is

deprived

of

this

factor.

Truly the Indian consumer now agrees with Food Bazaar: "Ab Ghar Chalaana kitna
Aasaan. This positioning platform of Food Bazaar is evident from the higher discounts
and the wholesale price-points which is below MRP.
Food Bazaar represents the companys entry into food retail and is targeted across all
classes of population. Food Bazaar replicates a local mandi, to provide the much
important touch & feel factor which Indian housewives are used to in the local bazaar.
Food Bazaar has over 50,000 stock keeping units which cover grocery, FMCG products,
milk products, juices, tea, sugar, pulses, masalas, rice wheat etc, besides fruits and
vegetables. All products are sold below MRP and discounts range between 2% to 20%.
Fruits and vegetables are sold at prices comparable to wholesale prices.

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Factors Influencing Customer Behavior with Reference to Big Bazaar

CHAPTER # 4
BIG BAZAAR AT PHOENIX MILLS COMPOUND!

4.1 Pantaloon Retail opens Big Bazaars at Phoenix Mills stations in Mumbai
Pantaloon Retail (India) Limited, the countrys leading retailer, opens a BIG BAZAARS in
Mumbai. The BIG BAZAARS are located at the Phoenix Mill respectively. The national
tally of BIG BAZAAR is now at 70 taking the total tally of BIG BAZAAR in Mumbai and
suburbans region. BIG BAZAAR, at phoenix has have FOOD BAZAARS within the
store.
BIG BAZAAR will provide shoppers with a completely new shopping experience and
make available -a range of products for every household need at never before prices
Shoppers for the first time will have the widest range of products in every segment
Womens Apparel, Mens Apparel, Accessories like belts and bags, Cosmetics, Gold
Jewellery, Kids Wear, Stationary and Toys, Footwear, Plastics and Home Dcor products,
Utensils & Home Appliances, Gift Articles, food and grocery items. Food Bazaar will offer
services like Live Kitchen where customers can get vegetables cut and select gravies of
their choice, Golden Harvest providing best quality grain, pulses & spices, Ready to
cook and Hungry Kya the ready to eat food sections. In addition, regular Food Bazaar
offerings of Grains and Provisions, Farm Fresh Fruits & Vegetables, Drinks & Beverages,
Dairy Products, Fabric Care products, Music Cassettes and CDs, Chill Station, Home Care
Products, Accessories, Kitchen Linen.

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On the occasion of the launch, Mr. Kishore Biyani, Managing Director, Pantaloon Retail
(India) Ltd.
Living up to its motto of Is se sasta aur accha kahin nahin", all products in BIG BAZAAR
will be available at prices lower than the MRP, often up to 60% discount. In addition to
this, various offers, discounts and promotions will be regularly held at the store. The
consumer will experience a new level of standard in price, convenience and comfort,
quality, quantity, and store service levels. BIG BAZAAR in its true hypermarket model
will offer all of the above for both leading brands as also for its private labels.

4.2

Layout chart of Big bazaar located at Phoenix


i.

HELP DESK As you can see from the layout, the Help Desk is located in a place
where everyone has their first sight that is in front of the entrance. This shows that
when a person enters in to big bazaar it can get all information about the stores of
big bazaar from the person sitting in the help desk. Help Desk uses paging service as
a tool for the convenience of its employees and customers.

ii.

KIDS SECTION The kids section is located just at the left corner of the entrance
of big bazaar. In the kids section kids accessories like diapers, trolleys, suckers,
water bottles are available in one part. Kids jackets and baba suits are available in
another part. Kids casual wear (jeans and shorts) are placed in one part of it and
infant shirts & t-shirts are also placed in another part. In this section the pillars are
used for displaying information like size chart and section description. The apparels
are available at a price of Rs59 onwards.

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iii.

MENS SECTION Next to it is the mens section that is in the center. It is divided
in to five parts. At one part men formal shirts are available. In other parts men
trousers, suits and blazers, fabrics and ethnics are available respectively. Here the
price ranges from a minimum of Rs99 to Rs899.

iv.

LADIES SECTION Next to it is the ladies section that is in the extreme right
side. The ladies section is segregated in to seven parts. Ladies section starts from
ladies ethnics, ladies western wear, ladies formals (office wear), ladies accessories
lingeries, ladies perfumeries, and ladies cosmetics respectively. Here the price of
the apparel ranges from Rs99 to Rs1000 approx.

v.

Promotional scheme With an add on to the above products there are various other
products which are available with a promotional scheme. The various products under
this scheme includes girl t-shirts, infant winter wear etc.

vi.

Non-Promotional scheme There are various other products available without any
promotional scheme which includes jeans, infant baba suits, infant t-shirts, kids night
wear, kids salwar suits etc.

vii.

Sports Store At the extreme corner there is a sports store where various kinds of
sport items are available.

viii.

Food Bazaar The food bazaar is in the 1st floor of the building. Various kinds of
food items, fruits and vegetables are available there. Sitting arrangements are well
made so that people can sit and take tea, coffee or snacks or any other food item and
can relax.

ix.

Cash Counter The cash counter is located just near the exit

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CHAPTER #5
SWOT ANALYSIS

A swot analysis is done to know the strengths, weaknesses, opportunities and threats of any
company. This analysis will explain about the strengths, weaknesses, opportunities and
threats of big bazaar.

5.1.

Strengths of Big bazaar


i.

Large variety option

Choice is good for us, but its relationship to satisfaction appears to be more
complicated than we had assumed. There is diminishing marginal utility in having
alternatives; each new option subtracts a little from the feeling of well-being, until
the marginal benefits of added choice level off. Whats more, psychologists and
business academics alike have largely ignored another outcome of choice: More of
it requires increased time and effort and can lead to anxiety, regret, excessively
high expectations, and self-blame if the choices dont work out. When the number
of available options is small, these costs are negligible, but the costs grow with the
number of options. Eventually, each new option makes us feel worse off than we
did before.
Choice can no longer be used to justify a marketing strategy in and of itself. More
isnt always better, either for the customer or for the retailer. Discovering how

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Factors Influencing Customer Behavior with Reference to Big Bazaar

much assortment is warranted is a considerable empirical challenge. But


companies that get the balance right will be amply rewarded.
ii.

Cheap price
Big Bazaar products are cheaper than anywhere else in the market by 5 to 60%. It
has its largest chain of retail marketing in India. It gives a family shopping
experience; it offers itself as a family shopping destination where the entire family
can visit together.

iii.

Huge customer Base


The clients to whom a business sells products and services. The customer base is a
relatively broad number of customers, with a smaller section of the base
being comprised of repeat customers.
The customer base is the group of customers who repeatedly purchase the goods or
services of a business. These customers are a main source of revenue for a
company. The customer base may be considered the business's target market,
where customer behaviors are well understood through market research or past
experience. Relying on a customer base can make growth and innovation difficult.

5.2.

Weaknesses of Big bazaar


i.

Lacks in branded products


There is no reason for any pessimism on Indian retail market prospects, Sanjeev
Agarwal, the Joint CEO of Big Bazaar, the Future Group chain, said here on Friday.

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Speaking to Business Standard at the launch here of their 148th store in the country, he
said the market was far from saturation. We plan to continue opening one to two
stores every month, he said. We are positive on consumer spending.
Agarwal said the chains revenue was growing at 25 per cent yearly. However, he
declined to talk on investments made or being planned.
Ruling out a foray abroad, he said the opportunity in India was quite large and,
therefore, there was no reason to look elsewhere. Our strength lies in knowing the
Indian customer well.
ii.

Low in product quality


Big Bazaar offers the maximum variety for every category of product. The product is
the same in every store in the city but the brand options are more in Big Bazaar and the
quantity for each product is not limited to large packs only. The commodities sold by
the retail chain includes its "own products" which get a ready distribution network.
The own products of Big Bazaar include My World fashion magazine which is not
available anywhere else. So costs are very low for such products.

iii.

Unable to provide enough parking space to its customers


The major problem that these upcoming malls are going to face is of parking. As the
retail sector is estimated to grow at 20 per cent, the retail space available will be more
than 25 million sq ft by the 2006 end. NCR, Mumbai and Bangalore are expected to
attract a major pie at over 60 per cent with NCR alone going more than six million sq
ft with 30 malls coming up by 2006 in the region.
So most of the malls are trying to provide as much of parking as possible within the
constraints of the plot area and the relevant bye-laws. But the reality is that even this
much parking space is not enough. In fact, 40-60 per cent of the mall traffic in the

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Factors Influencing Customer Behavior with Reference to Big Bazaar

country is car-borne. This figure is higher in NCR than in the other cities. The balance
consumers are less likely to be high ticket value or serious spenders and their spend is
more on categories such as fast-food,appearel and cinemas.

5.3.

Threats for Big bazaar


i.

Convenience of customers to nearby kirana stores


Unorganized retail stores are a threat to the business of big bazaar as now also
people prefer to go to the local stores which are convenient enough for them.

ii.

Availability of products in other retail outlets


There are a lot of countries which are planning to enter the Indian market like
Wal-Mart, Carrefour and Tesco which is a big threat to Big Bazaar.

5.4. Opportunities for Big bazaar


i.

To open up more and more number of big bazaars in different cities of the
country.
Future Group was founded on a simple idea, rewrite rules, retain values to create
a new kind of transformed marketplace and as a result countrys largest modern
retailer is set to break all records. It is now present across more than 100 cities in
India. He said that Punjab was among the top states in per capita spending while
Haryana ranked among the top in per capita income. The Big Bazar had devised
its expansion strategy on that count. Big Bazaar would also open a store at Jammu
in Jammu and Kashmir State shortly to tap the untapped state

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Factors Influencing Customer Behavior with Reference to Big Bazaar

ii.

To grab the rural market


Nowadays people prefer going to one big store and buy everything instead of
visiting different places for different items and waste time. So Big Bazaar can
expand the business in smaller cities as there is a lot of opportunity.
There is a lot of potential in the rural market.

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Factors Influencing Customer Behavior with Reference to Big Bazaar

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Factors Influencing Customer Behavior with Reference to Big Bazaar

CHAPTER #6
Questionnaire prepared for customers of Big Bazaar

1. How frequently do you visit Big Bazaar?


a)

Weekly

b)

Monthly

c)

Quarterly

d)

On a unplanned basis

2. Apart from Big Bazaar do you intend to visit any other retail outlet in a Mall?
a)

Yes

b)

No

3. If yes then what are the other retail outlets do you intend to visit in a mall?
a)

Garment Outlet

b)

Footwear Outlet

c)

Food Court

4. What is the purpose behind visiting Big Bazaar?


a)

Shopping

b)

To check latest trnd

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Factors Influencing Customer Behavior with Reference to Big Bazaar

5. What type of products do you mostly purchase in Big Bazaar?


a)

Cloths

b)

Grocery

c)

Food Item

d)

Electronic Item

6. On an average how much amount of money do you spend in a visit to Big Bazaar?
a)

Below 500

b)

500 1000

c)

1000 1500

d)

1500 2000

e)

More than 2000

7. On an average how much time do you spend in a visit to Big Bazaar?


a)

Less than half an hour

b)

Half an hour to 1 hour

c)

1 hour to 1 hours

d)

1 hours to 2 hours

e)

More than 2 hours

8. Do you go with a planned list of products to be purchased from Big Bazaar?


a)

Yes

b)

No

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Factors Influencing Customer Behavior with Reference to Big Bazaar

9. What is your mode of payment in Big Bazaar?


a)

Cash payment

b)

Credit Card

10. What encourages you to visit Big Bazaar?


a)

Price

b)

Service

c)

Ambience

d)

Product Variety

11. How would you rate the services of the sales personnel in Big Bazaar on a 1 5 scale?
a)

Very good

b)

Good

c)

Ok

d)

Poor

e)

Very poor

12. What is your convenience to Big Bazaar?


i.

Hired vehicle

ii.

Two-wheeler

iii.

Four-wheeler

iv.

Any other

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Factors Influencing Customer Behavior with Reference to Big Bazaar

13. How is the parking space availability in Big Bazaar?


a)

Less than adequate

b)

Adequate

c)

More than adequate

14. Do you go to Local Kirana store?


a)

Yes

b)

No

15. Whats your monthly income?


a)

Below 50,000

b)

50,000 1,00,000

c)

1,00,000 1,50,000

d)

1,50,000 2,00,000

e)

More than 2,00,000

1. Name: 2. Age: 3. Sex: 4. Location/Address: 5. Qualification: 6. Profession: -

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Factors Influencing Customer Behavior with Reference to Big Bazaar

CHAPTER #7
SUGESSTIONS AND CONCLUTION

7.1.

Suggestions
i. Big bazaar should provide large parking space for its customers so that they can
easily park their vehicles.
ii. Big bazaar should include more of branded products its product category so as to
attract the brand choosy people to come in to big bazaar

iii. It should make different cash counters for different customers. Cash counter and
credit card payment counter should be placed differently in order to reduce the
rush and save the customers time. This will be a kind of motivator for the
customers of big bazaar.
iv. The service of the sales person is needed to be improved. Personal care should be
taken by the sales person for the customers so that the customers feel good.
v. During the off peak hours big bazaar should provide some offers to its customers
so that people would be encouraged to come to big bazaar during off peak hours.
The customers who are present in the mall during the off peak hours of big bazaar
will definitely go in to big bazaar if surprise offers are made at that time.
vi. Customer care department is needed to take proper care of customer complaints
and queries. The person sitting at the help desk of big bazaar should be able to
provide all necessary information to the customers whenever it is required.

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Factors Influencing Customer Behavior with Reference to Big Bazaar

vii. The infrastructure is needed to be changed a bit during weekends as heavy crowd
comes in to big bazaar during those days.

7.2.

Conclusion
Big bazaar is a major shopping complex for todays customers. It is a place where
customers find variety of products at a reasonable price. Big bazaar has a good
reputation of itself in the market. It has positioned itself in the market as a discounted
store. It holds a huge customer base. The majority of customers belong to middle class
family. The youth generation also likes shopping and moving around big bazaar.
Volume sales always take place in big bazaar. Impulse buying behavior of customers
comes in to play most of the times in big bazaar.
Big bazaar is a hypermarket as it provides various kinds of goods like apparels,
grocery, stationary, food items, electronic items, leather items, watches, jewellery,
crockery, decorative items, sport items, chocolates and many more. It competes with all
the specialty stores of different products which provide goods at a discounted rate all
through the year. It holds a large customer base and it seemed from the study that the
customers are quite satisfied with big bazaar. A report by NDTV Profit says that Big
Bazaar has nearly 10,000 virtual franchisees in different cities of India, it seems that
there is a vast growth of big bazaar lying as customers demand is increasing for big
bazaars.

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Factors Influencing Customer Behavior with Reference to Big Bazaar

Big bazaar is a hypermarket store where varieties of products are being sold on
different product category. It has emerged as a hub of shopping specially for middle
class people.
Different types of products starting from a baby food to pizzas all are available under
one roof. In Mumbai it is the middle class people who mostly do marketing from big
bazaar. Even most of the people do their monthly shopping from big bazaar.
People not only visit big bazaar to do shopping but also visit for outing purpose as it
provides a very nice ambience to its customers. As people go to malls they just tend to
move around big bazaar whether it is for shopping purpose or for outing purpose.
Grocery, apparels and food items are the products which are demanded most by the
customers of Mumbai in big bazaar. The major drawback of big bazaar is that it lacks in
providing enough parking space for its customers. This may discourage the customers
to come to big bazaar and shop as they face difficulty in parking their vehicles. Even
though some customers say that they dont feel problem in parking their vehicle, it is
because of the parking space available to them by the mall.

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Factors Influencing Customer Behavior with Reference to Big Bazaar

BIBLIOGRAPHY

BOOKS KNOOTZO DONNEL - Essentials of management concepts


PHILIP KOTLER - Marketing Management
C .R. KOTHARI - Research Methodology

WEBSITES www.bigbazaar.com
www.google.com

REFERENCE Big bazaar outlet in Mumbai

MAGAZINE Business World


The Economic Times

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