UCTION

I n recent years, the supermarket industry has become increasingly competitive. One outcome has been the proliferation of a variety of pricing formats, and considerable debate among academics and practitioners about how these formats affect consumers' store choice behavior. This paper clarifies about the pattern of the consumer shopping behavior at new retail formats such as shopping malls, hypermarket, departmental stores. Also it studies an important determinants of the store choice decision when stores offer different price formats. Retail is India's largest industry, accounting for over 10 per cent of the country's GDP and around eight per cent of the employment. Retail industry in India is at the crossroads. It is witnessing a huge ramping exercise as traditional markets way for new formats such as departmental stores, hyper market, supermarket & specialty stores. Western style malls have begun appearing in metros and second- sung cities alike introducing the Indian consumer to a shopping experience like never before. Its raining malls in small town India whether Kanpur, Ludhiana, Amritsar, Ahmedabad .The mall & the multiplex culture has caught on in the countrys smaller cities powered by the burgeoning purchasing power of Indias Middle class. Visiting a modern shopping center is becoming vital in our society nowadays. The fast growth of shopping center, transportation system, and modern Vehicles has given more choices for consumer in shopping. Although there are many reason for consumers in visiting the shopping center, the influence of travel time and size of shopping center are important to be considered towards the frequencies in shopping centers. The entire concept of shopping 1

1 2 1

Consumer Behaviour Towards The Shopping Malls

CHAPTER

INTROD

Consumer Behaviour Towards The Shopping Malls

has altered in terms of format and buying behaviour over the last five years, ushering in a revolution in shopping in India. The traditional formats like hawkers, grocers and tobacconist shops co exist with modern formats like supermarkets, and non store retailing channels such as multi level marketing and tele-shopping. Modern stores tend to be larger, carry more stock keeping units have a self service format and an experiential ambience. Modern formats also tend to have higher levels of sales per unit of space, stock turnover and gross margin but lower levels of net margin as compared to traditional formats. In recent years, there has been a slow spread of retail chains in some formats. The aim of marketing is to meet and satisfy target customers need and wants. The field of consumer behaviour studies how individuals and organizations select, buy and dispose of goods, services, ideas experiences to satisfy their needs and desires. Understanding consumer behaviour and knowing customers are never simple, customer may say one thing but do another. They may not be tough in with their deepest motivations; they may response to influences that change their minds at last minute. The companies stand to profit from understanding their minds at last minutes .The companies stand to profit understanding how and why their customers buy. The starting profit understands the buyer behaviour is its stimulus response model. Marketing and environment stimuli enter the buyers consciousness. The buyers characteristics and decision process lead to certain purchase decisions. The marketers task is to understand what happens in the buyers consciousness between the arrival of outside stimuli and the buyers purchase decisions. Customer behaviour is a function of interaction between the person and the environment around them. This however is a very simple way of explaining the human behaviour, which is in reality a highly complex process. There are numerous forces that can effect purchasing decision, for eg. Lifestyle, age, they influence behaviour. 2

Consumer Behaviour Towards The Shopping Malls

Retailing in India is at a nascent stage of is evolution, but within a very short time certain trends similar to global experiences are clearly emerging. Retailing which covered diverse products such as food, apparel, consumer goods, financial services and lifestyle goods is gradually replacing the individual small stores with big chain stores. With shopping attitudes of people changing, organised retail markets today desire value added products and services with good ambience and brands, which only a retailer can provide, making future growth difficult for the small retail sector. Driven by demographic changes including rising double digit income levels and a rapidly expanding middle class, the Indian retailing sector is at an inflexion point where the growth of organised retailing and growth in the consumption by the Indian population is going towards a higher growth trajectory. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. The various socio- economic changes have led to traditional opening hours and modes of operation. Advances in retailing have been driven by idea that consumers are more and more aware of time they spend on shopping. This is for the most part because new technology & trends in shopping time have been removed the need for shopping at certain times of the day. It is almost part of the social fabric of families to spend some time shopping at the retail park on Sunday afternoon. Extended opening has made it possible for most consumers who have the mobility to shop at their convenience. The arrival of new forms of one-stop shopping such as factory outlet, ware house clubs and catalogue stores have reduced the search time consumers need to spend. There are others factors too which can be listed as Increased in income Changes in household structure Increased working hours 3

Consumer Behaviour Towards The Shopping Malls

More leisure activity available The need for extra time to consume positioning products

1.1 Retail Formats

The category of specialist and non specialist retailers is relatively simple way of dividing types of stores. However from a customer point of view, the sale appeal of a particular store is related to the way the retailer present the store. The retail format is the store package that the retailer presents to the customer. The retailer uses the store to give out message to customers about that products available, the prices the customer can expect to pay and the range of additional services that the retailer may offer to the customer. Retalil formats can be defined according to different attributes. Location:- Store location significantly affects customers expectations. Stores in- out of town centres will have to offera superior selection to attract customers. For the factory outlet , the attraction must be suitable range of high class brand names at bargain price: for the store at an out of town retail center . Size:- the size of store affects customer expectation as to the range of products stocked, small boutiques will be expected to stock an interesting variety of a limited assortment of products. Merchandise:This has a number of aspacts that the --- Product mix --- Merchandise assortment --- Breadth --- Depth of merchandise 4 retailer needs to take not of

Consumer Behaviour Towards The Shopping Malls

Price:-

Charge of prices either low or high. Some

supermarket charges low prices offer a wide range and deep assortment. Atmosphere and service:- Sense of qualityor low price; full service or limited service are all signals that customers pick up and use in deciding where to shop.

Major formats of retailing stores FORMAT Convenience stores Description Small selfformats Departmental stores Proposition service Convenient locations n and extended

located

crowded urban areas operating hours. Focus on specific Greater choice to the consumer need, carry consumer, most of the brands comparison between available. brands possible. Extremely large self One shop catering to services retail outlets. varied consumers needs. offering Low prices on the price through the of shops to

Discount stores

Supermarket

Stores discounts retail and

selling high volumes reaping economies of scale. An enclosure having Variety different in-store Hypermarket formats retails of available all each other. the Low choice cafeterias. prices, vast

Shopping malls

close

under one roof Larger then supermarket ,sometimes warehouse 5

available

with including services as

Consumer Behaviour Towards The Shopping Malls

appearance, generally located in Specialty stores quieter part of city. Focus on a specific Greater choice to the consumer need, carry consumer, most of the brands comparison between Branded Stores available. brands possible. Exclusive showrooms Complete range either owned or available for a given certificate product quality. franchised out by a brand, manufacturer.

Non store retailing falls into four categories: direct selling, direct markeing (which includes telemarketing and internet selling) automatic vending and buying services. Types Direct Selling Description Examples Door to door selling Avon, or at home sales Tupperware, Direct Marketing parties It Eletrolux includes L.L beans home

telemarketing, television

electronic shopping, shopping direct network, Amazon.com, response marketing Automatic Vending

ebay.com Used for variety of Automatic merchandise cigarettes, drinks, like Tellers soft Machine(ATM) coffee,

Buying service

candy, etc. Storeless retailers who is entitled to buy from a list of retaikers that have agrred 6 to gern

Consumer Behaviour Towards The Shopping Malls

discount in return fro membership.

1.2 Consumer Behaviour

Consumer behaviour was a relatively new field of study in the mid- to late-1960s. Since it had little or no history or body of research of its own, marketing theorists borrowed heavily from concepts developed in other scientific disciplines, such as psychology (the study of the individual), sociology (the study of groups), social psychology (the study of how an individual operates in groups), anthropology (the influence of society on the individual), and economics (the study of spending patterns in society) to form the basis of this new marketing discipline. Many early theories concerning consumer behaviour were based on economic theory, which is the notion that individuals act rationally to maximise their benefits (satisfactions) in the purchase of goods and services. Later research discovered that consumers are just as likely to purchase impulsively and to be influenced not only by family and friends, by advertisers and role models, but also by mood, situation, and emotion. All of these factors combine to form a comprehensive model of consumer behaviour that reflects both the cognitive and emotional aspects of consumer decision making. Behaviour of any type including consumer behaviour is a function of the interaction between the person and the environment around them. There are the numerous forces that can affect the purchasing decision, for eg., lifestyle, mental process & age all influence behaviour.

Consumer Behaviour Towards The Shopping Malls

1.3 Factors Influencing Consumer Behaviour

CULTURE SOCIAL CLASS INCOME EDUCATION

MOTIVE PERCEPTION

PROBLEM RECOGNITION INFT.SEARCHING

INFORMATION PROCESSING LEARNING

EVALUATING ALTERNATIVES PURCHASING DECISION POST- PURCHASE DECISON

REFERENCE GROUP FAMILY SITUATION

ATTITUDE PERSONALITY

Some Major Factors Influencing Consumer Behaviour 1.3.1 CULTURAL FACTORS Culture, subculture and social class are particularly important in buying behaviour. 1.3.1.1 Culture Culture is the most fundamental determinant of persons want and behaviour. The growing child acquire a set of values, perceptions , preferences and behaviour through his or her family and other key institutions. 1.3.1.2 Subculture Each culture consists of smaller sub-culture that provide more specific identification and socialization for their members. Sub-culture 8

Consumer Behaviour Towards The Shopping Malls

includes nationalities , religions racial groups and geographical regions. Many subcultures make up important market segments and marketers often design products and market programs tailored to their needs. 1.3.1.3 Social Classes Virtually all human societies exhibit social stratification. Stratification sometimes takes the form of a case system where the members of the different castes are rare for certain roles and cannot change their caste membership. More frequently stratification takes form of social classes. Social Classes are relatively homogeneous and enduring divisions in a society which are hierarchically ordered and whose members share similar values, interest and behaviours. Social class show distinct product and brand preferences in many areas including clothing, home furnishing, leisure activities and cosmetics. 1.3.2 SOCIAL FACTORS In addition to culture factor a consumers behaviour is also influenced by such social factors as reference groups, family and social roles and statuses. 1.3.2.1 Reference Groups A person reference groups consists of all groups that have a direct or an indirect influence on the peoples attitude of behaviour. Groups having a direct influence on a person are called membership groups. Some memberships groups are primary groups. Such as family, friends, neighbors and co-worker, with whom the person interacts fairly continuously and formally. People also belong to secondary groups, such a as religious professional and trade union groups which tend to be more formal and require less continuous. People are significantly influenced by their preference groups while making purchase decisions. 9

Consumer Behaviour Towards The Shopping Malls

1.3.2.2 Family The family is the most consumer buying organization in society and it has been researched extensively. Family members constitute the most influential reference group. Marketers are interested in the roles and relative influence of husbands, wife and children in the purchase of large variety of products and services. These roles vary widely in different countries and social classes. 1.3.2.3 Role and status A person participates in many groups family, clubs and organizations. The persons positions can be in terms of role and statutes. A role consists of the activities that a person is expected to perform. Each role carries a status. A Supreme Court justice has more status then a sales manager does and a sales manager has more status than assails executive. 1.3.3. PERSONAL FACTORS Buyers decisions are also influenced by personal characteristics. These include the buyers age and stage in life cycle, occupation, economic circumstances, lifestyle and personality and self concepts. 1.3.3.1 Age and stage in life cycle People buy goods services over a life time consumption is shaped by the life cycle. Marketers usually choose life groups as their target market. Marketer pay close attention to changing circumstancesdivorce, widowhood, remarriage and their effects on buyer behaviour. 1.3.3.2 Occupation and economic circumstances Occupation also influences a persons consumption pattern. Marketers try to identify the occupational groups that have above average interest in their products and services. A company can even 10

Consumer Behaviour Towards The Shopping Malls

specialize in its product for certain occupational group. Product chose is greatly affected by economic circumstances spend able income, savings and asset holdings influence and purchase behaviour.

1.3.3.3 Lifestyle A life style is the persons pattern of living in the world as expressed in activities, interests and opinions. Marketers search for the relationship between their products and lifestyle groups, for example, a computer manufacturer might find that most computer buyers are clearly at the achiever lifestyle. 1.3.3.4 Personality and self concept By personality we means distinguishing psychological characteristics that lead to relatively consistent the enduring responses to environment. Related to personality is self image. Marketers try by develop brand images that match the target markets self image.

1.3.4 PSYCHOLOGICAL FACTORS A persons buying choice is also influenced by four major psychological factors motivation, perception, learning and beliefs and attitude. 1.3.4.1 Motivation A need become a motive when it is aroused to a sufficiently pressing to drive the person to act. psychologists have developed theories of human motivation. These carry quite important implications fro consumer analysis and marketing strategies. 1.3.4.2 Perception 11

Consumer Behaviour Towards The Shopping Malls

Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world. The key word in the definition of perception of individual. Consumer buys the products of those companies, which he/she best suit to satisfy his/her needs. 1.3.4.3 Learning Learning involves change in individuals behaviour arising from experience. Learning theorists believe that learning is produces through the interplay of drives stimuli clues responses and reinforcement. Learning theory teaches marketers that they can build demand of their products by associating it with strong drives, using motivating cues and providing positive reinforcement. 1.3.4.4 Belief and attitude A belief is a descriptive thought that a person hold for something . Beliefs may be used ob knowledge, opinion of faith. Manufacturer are interested to know the believes of the people about their products. These belief make product and brand images,. On the other hand attitude is persons enduring favorable or unfavorable evaluations, emotional feelings and action tendencies some object or idea.

1.4 CONSUMER DECISION MAKING PROCESS

The stages of the buying decision process Following diagram shows the various stages of buying decision process.

12

Consumer Behaviour Towards The Shopping Malls

Problem Recognition Information Search Evaluation Of Alternatives

Purchase Decision
Post Purchase Behaviour

Problem Recognition The buying process starts when the buyer recognizes a problem of need. The need may be trigger by internal or external stimuli , marketers need to identify the circumstances that trigger a particular need. Information Search An around Customer collects the information. One of key interest to the marketer are the major information sources to which the consumer will turn and the relative influence each will have on the subsequent purchase decision. Evaluation Of Alternatives There is no single evaluation process used by all consumers in all buying situations. There are several decision making processes the most current of which see the consumer as forming judgments largely on a conscious and rational basis. Purchase Decisions

13

Consumer Behaviour Towards The Shopping Malls

In Evaluation stage the consumer forms preference among the brands in the choice set. The consumer may also form an intention to buy the most preferred brand. However two factors can intervene between the purchase intention and the purchase decisions. The first factor is the attitude of the others. The second factor is anticipated situational factors that may erupt to change the purchase intention. A consumers decision to postpone, modify or avoid a purchase decision is heavily influenced by perceived risk. The amount of perceived risk varies the amount of money at stake the amount of attribute uncertainly and amount of consumer self confidence. Post Purchase Behaviour What determine whether the buyer will be highly satisfied, somewhat or dissatisfied with the purchase? The buyers satisfaction is the function of the closeness between the buyers expectations and products perceived performance. If performance falls short of expectations, the customer is disappointed; if it meets the expectation, the customer buys the products again and talks favorably about the products to others.

1.5 OBJECTIVE OF THE PROJECT

To delve into the buying behaviour of the shoppers to get an insight to find out the most preferred attributes of the stores in shopping malls perceived by customers. To find the structural changes in our society & the impact of this on the new retailing formats like malls, hypermarket, convenience store, Department stores, and specialty stores. To find out the attributes important for hypermarket, supermarket to take care of. To find out the awareness of the new retail formats in the Amritsar region. To find out the buying pattern of the consumer. 14

Consumer Behaviour Towards The Shopping Malls

ORGANIZATION OF THE REPORT The report Consumer behaviour towards the shopping malls is purely academic. The first chapter is an introductory section followed by four more chapters. The introductory section provides an excellent compilation of internationally accepted definitions of retailing in different sectors. Second chapter is about the literature of the project, it gives a review of the project prepared under the related topic. The third chapter is the research and methodology, here the procedure or methods of collection of data are explained, limitations are also explained in this part. The fourth chapter deals with data analysis and interpretation here the findings of the data analysis is interpreted. In the final &the last chapter the conclusion & recommendations is there. The bibliography & annexure are added at the end of the project report.

LITERATURE

Dictionary, is the sale of goods to the public for use or consumption rather than for resale. Retailing is derived from the French word 'retailier' meaning 'breaking bulk' and breaking bulk quantities into smaller sellable units. Usually, a retailer buys goods or products in large quantities from manufacturers or importers, whether directly or through a wholesaler, and then sales individual items in small quantities to the general public or end users. The world over the retail sector has grown rapidly with increasing sophistication and modernization of the life-style of households and individuals and with increasing globalisation of trade. Shopping malls 15

2 1

CHAPTER

REVIEW OF THE

Retail, according to Concise Oxford English

Consumer Behaviour Towards The Shopping Malls

Laurant and Kapferer (1985) define involvement as a multifaceted construct having five dimensions of perceived importance and risk of the product class, subjective probability of making a mis-purchase, symbolic or sign value attributed by the consumer to a product class, hedonic value of the product class, and interest. Ghosh (1986) demonstrated that the consumer purchase behaviour depends on the the shops laoctions and he amended central place theory by explicitly taking multipurpose shopping into account. Carn et.al (1988) mentioned that in general location of shopping center is either in the city center or in suburban in housing complex. The distance or travel time will be depended on road condition and transport mode availability. Product variety, pricing and service will attract shoppers to buy their needs in the shopping center . The developers effort to attract more customers could be done by promotion activities and provide more recreation facilities. Market segmentation and life style of the shoppers with comfortable access, air conditioning facilities and security will improve the attraction of shopping center. Slama and Taschian(1988). They define involvement as the selfrelevance of purchasing activities to the individual. The degree of relevance or involvement determines the consumers level of motivation to search for knowledge or information about a product or service. Berry & Martineau (1988). Shoppers find that displays and layout have more significant role in high-fashion appeal than in a broad appeal store .

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Consumer Behaviour Towards The Shopping Malls

Peterson (1992) research explained that similar the departmental stores, specialty stores appeal to those in the middle to upper income groups. The consumers spent some part of their shopping expenditure for the purchase of the grocery at these stores. Mebrabian & Russel (1994) noted that the response that the response that store atmosphere elicits from consumers varies along three main dimensions of pleasantness arousals and dominance. Lewsion (1994) research that departmental stores normally appeal to middle & upper income consumers & offer brand name & designer label merchandise at multiple price points. Donovan, Rossiter, Marcoolyn, and Nesdale(1994). In some cases it is found to be leading to patronising the shop A higher store loyalty is shown by shoppers who perceive congruence between selfimage and the image of the store. The store image is created by several factors.The important factors that constitute image of the store include quality and assortment of merchandise, sales persons and store atmosphere . Levy & Weitz (1995).According to them, customers see a store a collection of characteristics and benefits sought. The model is designed to predict a customers evaluation of a store based on stores performance on several attributes, and the attributes importance to the customer. Thus the three types of Stores: Convenience, Variety and Experiential are based on the performance benefits they provide to the customers. These benefits are derived out of several variables like price, discounts offered, travel time, assortment range, quality, atmospherics/ambience and service. It is possible that a particular store may offer several benefits. But for the suggested model, the primary motive of choosing a store has been 17

Consumer Behaviour Towards The Shopping Malls

considered. Hence, a corner store may offer variety or may also be patronise, but the main benefit is the convenience that the shopper derives out of its location. Similarly, a store dealing exclusively in a product or a brand may be conveniently located and may also offer other merchandise, but the choice of the store is influenced more by its product line or the brand and hence exclusivity becomes the prime motive of the choice of the store. A store may also be chosen for the primary reason that it provide a range of merchandise not offered by any others store. The two dimensions need to be measured differently. Although Purchase Involvement is measured on a continuum, for the sake of simplification it has been categorised as High, Medium and Low. It can be measured using an interval scale. Store type is a category variable described as Convenience, Variety and Experiential. shoppers exist, the study conducted has brought out that there are shoppers that would fall in other cells too. Schiffman & Kanuk (1997).Purchase Involvement for the

suggested framework is indicated by the extent of information search at the store. The operative words are Information Search and At The Store. The intention is to exclude the impact of other efforts that would have been made to arrive at the store and focus only on the efforts at the store. Store type has been defined based on the benefit that the shoppers would draw from the store.It can also be taken as the positioning/image platform used by the store. Tang (1998) explained that the consumers buying behaviour does not depend on the location of the store but other variables are there which affect to take decisions. He explains that store choice decisions is consistent with a model where consumers optimize their total shopping costs, effort to access the store location being one component of their fixed cost of shopping.

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Consumer Behaviour Towards The Shopping Malls

Tanan (1998) stated five important factors as attraction power of shopping center that is location, business concept, design, tenant mix, and management. Location have a very broad meaning includes catchment area, on the way home, accessibility, and neighbourhood development. Location has closed relationship with the accessibility of shopping center. Connolly and Firth(1998) explained that information recall is enhanced when the context in which people attempt to retrieve information is the same to the context in which they originally coded the information. Such information activates consumers memories pertaining to brand and its features and helps the consumer in making a purchase decision in favour of the displayed brand. This gains importance in the light of the fact that brand name is considered the most influential factor in purchasing. Connolly and Firth(1998) Consumers shopping behaviour can not be fully understood outside the context in which it occurs - neither consumers nor brands exist in isolation. A shopper goes through a process of See-Touch-Sense-Select in order to buy a product. The degree to which the consumer follows the whole or part of this process varies with brand, product category, and other elements of the marketing mix . Sinha and Uniyal (2000),according to the studies conducted by POPAI on consumer shopping behaviour show that a high proportion of all purchases in super markets and other retail outlets are unplanned and many product and brand choices are made while the consumer is in the store. POP plays a major role in influencing such unplanned purchases. POP communication also induces the shoppers to stay at the retail outlet for a longer duration leading to increases spending. 19

Consumer Behaviour Towards The Shopping Malls

Jai Okim(2001) explained that the psychological factors and store related variables the attributes of textile products determine the store choice, the buying behaviour of the consumers. He found that to compete in the growing industry, company should have global distribution channels & marketing strategies to built competitive advantage. Baker et. Al (2002) provided a good review of this research and categorize the elements of in-store atmosphere into physical features like design lighting & layout. Ambient feature like music and friendliness of the employees. KPMG Survey (2005) The latest years have witnessed as explosion of organized retail formats like supermarket and hypermarket in an otherwise fragmented India retail market. According to this report the organized retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles, strong income growth and favorable demographic patterns. According to this report the annual growth of departmental stores, shopping malls has been estimated at 24pecent , which is faster than over all retail, and supermarket have taken an increased share of general food and grocery trade over last two decades. There are different factors underlying modernization in retailing. These factors are 1. Economic development 2. improvements in civic situation 3. Changes in consumer needs, attitude and behaviour 4. Changes in government policies 5. Increased investment in retailing 6. Rise in poser of organized retail 20

Consumer Behaviour Towards The Shopping Malls

1. Economic Development:- the development of the Indian economy is a necessary condition fro the development of the Indian retail sector . development increases the disposable income in the hands of consumers and leads to an increase in the proposition of spending on the discretionary non-food items. Economic development also enfranchise new households as potential customers for modern retail and leads to increased ownership of personal transportation among customers, which in turn can increase their willingness to travel longer distances to shop in new format stores. The growth of the economy can also provide gainful employment to those who would otherwise enter can also provide gainful employment to those who would otherwise enter retailing in areas like hawking, roadside vending of international retailing companies about the business prospects and investment attractiveness in a country. 2. Improvements In Civic Situation:The civic situation

includes factors like safety and security in the city and the various municipal regulations governing the opening, location and operation of stores, and the nature of public transport available. A safe and secure environment will encourage the setting up of 24 hrs convenience stores and the operation of shopping plazas and encourage shopping expeditions for the the whole family. The family presence of adequate parking facilities or excellent public transportation will encourage consumers to be more mobile in their choice of store. City or state regulations on opening and closing hours, rent control laws, availability of adequate electrical power and regulations relating to licensing will affect both the time required to set up a new store as well as the cost of store operation and its viability. Many of the civic factors mentioned above would be 21

Consumer Behaviour Towards The Shopping Malls

dependent on the economic development and administrative policies in the area. The impact of the civic situation may influences the choice of the cities, states, zones in which the modernization investments will be made. 3. Changes In The Consumer Needs , Attitude And

Behaviour:The growth of the modern retail is linked to consumers needs, attitude and behaviour. Marketing channels including retailing emerge because they receive impetus from both the supply side and the demand side. On the demand side, the marketing channel facilitates provides service outputs that consumer value. These service outputs may include but are not limited to bulk breaking, spatial convenience, waiting and delivery time and assortment. In India retailing, convenience and merchandising appear to be the most important factors influencing store choice, although ambience and service are also becoming important in some contexts. Modernisation will have to address convenience issues while presenting strong alternatives to the weakness of traditional formats in selection of merchandise available fro sale, modern formats need to be expensive and can offer lower prices to consumers. Lower prices in terms will increase the attractiveness of modern formats and rapid growth in the preference for purchasing from new retail format stores. Store ambience includes such as lighting, cleanliness, store layout and space fro movement. Modern stores can offer a far better ambience compared to traditional stores. On the service front, traditional stores especially kirana stores offer

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Consumer Behaviour Towards The Shopping Malls

credit and home delivery. These needs have to be addressed by new format. While consumer needs, attitude and behaviour will influence the development in retail, it is likely that investments in the retailing and the creation of new stores offering value until in turn influenced consumers. 4. Changes In The Government Policies The Indian government has clarifies on a number of occasions that FDI will no be permitted in India. Major international retailer organizations will be watching for signals of policy change especially because China has permitted foreign investment in retail. In opening up the retail sector, the government may consider various approaches sucha s insisting on joint ventures, limiting the foreign stake or specifying the cites where investment is permitted. Some policy protection can be given to consumer cooperatives which had been provding value to their numbers and customers. This protection can be in the form of allowing these organisatins to access capital from the local market and operate in a more professional manner. The government can also play a positive role in simplifying or eliminating the plethora of regulations governing retailing. Specific laws regulating toe franchising will also be desirable for foreign and Indian brand owners to adopt the francise route in a bigger way. 5. Increased investment in retailing :The prospects of significant modernization and development in retailing will depend on the nature of investment in this sector. The investment will be of two types foreign and domestic. Although FDI is not yet permitted in retailing, a number of global retailers are testing the waters by signing 23

Consumer Behaviour Towards The Shopping Malls

technical agreements and franchise with Indian firms. East food chain like McDonalds and Pizza hut are already operational in metros . Marks and Spencer is already in operation at Mumbai. Several global retailers are awaiting a change in policy. However, the development of well appointed exclusive showrooms for their textile brands. In the 1990s industrial hosyes like Rahejas, Piramals and Tatas have entered retailing. Several Indian and foreign brands have used franchising to establish outlets for their brands. 7. Increased In Power Of Organized Retail Retailers can increase their power in several ways: They can invest efforts in developing heir own store brands. The supermarket chain food world has begun doing this in a limited way with food grains and pulses. They can invest in supply chain, buy directly from the sources and eliminate the middlemen. They can attempt to obtain volumes in buying aggregating the requirements of various stores and bargaining for better prices by pacing larger orders. Retailers can also obtain several benefits from using information technology. They can monitor their sticks and slaes using IT and thus manage their working capital more efficiently.

Bauer (2005) According to Bauers report, consumers behaviour involves risk because their are willing to purchase only products with 24

Consumer Behaviour Towards The Shopping Malls

low levels purchasing actions will produce consequences of purchasing risk. FCCI Survey (2005) Federation of Indian Chambers of Commerce

and Industry (FICCI) invited KPMG in India to conduct a survey to gain a better insight into the retail sector. According to this report t here are multiple factors driving Indian retail growth. With roughly 60 percent of the total population below 30 years of age, favorable demographics are expected to drive consumption across categories. The purchasing power of a young consuming middle class has been talked of since the time of economic liberalization in 1991. However, it is only today that we are witnessing the spending power associated with this consumer segment. For example, 50 percent of cellular phone purchases in the past year were by the under-30 age group2. This consumption is expected to continue due to the aspirational nature of spending associated with this consumer segment. The AC Nielsen Online Omnibus Survey 2005 rates India in the highest category of Aspiration Index in Asia, along with China, Indonesia and Thailand. In such a scenario of rapid growth, the preparedness of Indian retailers in terms of having appropriate formats, scalable processes, appropriate technology and relevant organization capability will be crucial to success. Local conditions and insights into local buying behavior have to shape the format choice. The lessons learned from multinationals expanding to new geographies also point to this. India would see experimentation by retailers to identify the winning format suited to different geographies and segments implying multiple formats by retailers. Such experimentation and identification of an appropriate format for local conditions would differentiate winners from losers in the Indian retail market of the future.

25

Consumer Behaviour Towards The Shopping Malls

KPMG surveyed the retailers in India along three dimensions: internal processes (supply chain management, private label management and loss prevention): real estate availability and costs, finance availability and costs. Easy availability of finance at competitive rates is a key enabler for growth in India. Retail space availability and costs are also prime issues to be dealt with. With respect to operations management and leveraging technology, retailers in India are at a nascent stage. This would be another area of opportunity for winners of the future to distinguish themselves clearly from the rest of the industry. While there are obstacles, there are clear opportunities in modern retailing in India. There are many lessons India can take from other countries that have moved along the path of retail evolution. There are also several best practice organizations from which Indian retailers can pick relevant lessons and tailor them to suit local requirements.

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Consumer Behaviour Towards The Shopping Malls

CHAPTER

METHODOLOGY

This study is an attempt to study the Consumer Buying Behaviour towards the Shopping Malls, in Amritsar and to know the various factors that consumer considers during the shopping at shopping centers, departmental stores, hypermarket. 1. Universe Of The Study The universe of the study was limited only to the consumer belonging to Amritsar City. 2. Sample size and sampling design (a) Sample Size. A sample size of 100 was chosen to deliver the requisite levels of statistical accuracy. They were personally interviewed at the time of selecting the respondents every care was taken to select the respondents every care was taken to select the respondents with different social economic background as to make it fairly representative. This selection was made with consideration of the need to be able to compare the results obtained in the survey with those obtained from future tracking studies. (b) Sampling Design After thoroughly reviewing the nature of the study. It was decide to employ a non sampling technique 27 named convenience

RESEARCH

Consumer Behaviour Towards The Shopping Malls

sampling. The survey was conducted on the basis of convenience sampling. Respondents wee contacted as per convenience of the researcher. the data was collected such a way that it covered all age groups, occupations, all stratas of society. 3. Data collection Two types of data i) Primary data and ii) Secondary data i. Primary Data:Primary data was collected with the help of self constructed questionnaire. A structured and non disguised questionnaire was designed in such a way that it could explore the behaviour of the consumers, awareness of the emerging shopping malls in Amritsar. It contains questions which describes the their buying pattern during consumer buying behaviour and

supermarket purchasing. The preliminary draft questionnaire was pre-tested. This helped in improving the questionnaire and again the final questionnaire was prepared for the conduct of the survey. ii. Secondary Data Secondary data was collected from various magazines, books websites, and newspaper. The magazines related to business world such as business week, business today,4 Ps etc. Some part of the data was collected from the various national daily newspapers such as THE ECONOMIC TIMES, FINANCIAL EXPRESS. 4. Data analysis To analyses and interpret the data so collected following tools have been used. The responses have been tabulated into master and derivatives tables in terms of both number and percentages. The scientific interpretation of the data various statistical tools such as 28

Consumer Behaviour Towards The Shopping Malls

weighted average, factor analysis were used. Statistical analysis was carried out using Stastical Package For Social Sciences (SPSS version 10.0) . Depending upon the level of measurement a variety of tests were carried out. Data coded in excel sheet was imported in SPSS & analysis was performed. The output data is interpreted accordingly. The factor analysis was used to determine the underlying factors that are perceived by the customers in their purchase behaviour at shopping malls. The detaied results of the analysis is presented in appendix. LIMITATION OF THE STUDY 1. The sample size taken is small and may not give an exact representation of the population. Hence sufficient to predict the result with 100% accuracy and findings cannot be generalized. 2. The results are based on the collected data hence the researcher is not responsible for any wrong inference drawn due to dishonest filling of the questionnaire by the respondents. 3. Financial and time constrains prevented an in-depth study of the problem. The accuracy of the results in also limited to the reliability of method of the investigation, measurement and analysis of the data. 4. The present study is based on the data collected from Amritsar city; it results may not be applicable to the other cities because of social and cultural differences. 5. Consumer purchase behaviour is dynamic in nature. As such there is every possibility that over time and space those results of today may become inconsistent tomorrow.

29

Consumer Behaviour Towards The Shopping Malls

CHAPTER

ANALYSIS & INTERPRETATION

The findings of the survey and data collected in the Amritsar region has been discussed in this chapter. There are two sections in this chapter. First section is related to the consumer demographis and second chapter is related is related to the consumer behaviour. Section A 1. Age of the respondent Table 1.0 Percentag Age Group Less than 20 yrs 21---30 yrs 31--40 yrs More than yrs Total 40 10 100 To have e 10 68 12
68% 10% 12% 10% Less than 20 yrs 21---30 yrs 31--40 yrs More than 40 yrs

DATA

Fig 1.0 Age of Respondents

better

response

respondents were selected from all the age groups. But 68% accounted for the young respondents between 2130 yrs of age.

30

Consumer Behaviour Towards The Shopping Malls

2. Gender wise distribution of respondents Table 2 Percentage of Gender Male Female Total respondents 52 48 100
Female 48% Male 52% Male Female

Fig 2.0
Gender

Almost the respondents selected were 50:50, though male and female view points were taken impartially. 3. Marital Status Table 3.0 Marital status Single Married Divorced Total
Divorced Marital status Percentage 6% 73

Fig 3.0

Widowed 17 4% 17%

Single Married Widowed Divorced

Widowed Married 4 6 100

Single 73%

31

Consumer Behaviour Towards The Shopping Malls

73

A very high percent equal to 73% of the respondents were single and 17 percent of the respondent were married. Rest were widowed and divorced. 4. Education of the respondents Table 4.0 Percentag Education High School Intermediate Graduate Postgraduate/Professio nal Fig 4.0 Total e 12 2 34 52 100 Educational background
Percentage 60 40 20 0 Intermedi ate Graduate Postgrad uate/Prof essional High School

Series1

Education

52% of the respondents had completed there postgraduation or pursuing and 34% of the respondent were graduates, this survey explains the educated class of the Amritsar region. 32

Consumer Behaviour Towards The Shopping Malls

5. Number of family member Table no 5 Family members One Two Three Four Five Total Percentag e 0 4 28 36 32 100 Fig 5.0
Family members
no of respondents 100 80 60 40 20 0 0 One 4 Two Three Four Five 28 36 32

No Of members

The respondents selected mostly had more than 3 members in there family. 36 % of the respondent responded that they had 4 family members in their family. 6. Annual Income of the respondent Table 6.0 Annual household Percenta income Under 20,000 Rs 20,00029,999 Rs ge 42 Rs 24 30,00018 Rs 4 33

Rs39,999 Rs 40,000-

Consumer Behaviour Towards The Shopping Malls

49,999 Above 50,000 Total

12 100

Fig 6.0

A n n u a l h o u s e h o ld In c o m e
No of respondent 100 80 60 40 20 0 U nd e r Rs Rs Rs A b o ve 2 0 ,0 0 0 2 0 ,0 0 0 - 3 0 ,0 0 0 - 4 0 ,0 0 0 - 5 0 ,0 0 0 R s 2 9 ,9 9 R s 3 9 ,9 9 R s 4 9 ,9 9 9 9 9 In c o m e From the above chart we can see that, the respondent annual family income, where 42% of the respondent had family in the range of 20,000. and 24% accounted fro the the range of 20,000- 29,999 rs. The consumer buying behaviour is also dependent on these factor. So this survey explains that with the growing economy the average salary, income of the people have increased and people have discrete income for shopping purpose. 7. Occupation of the head of the family Table 7.0 Percenta Occupation Professional/technic al Manager/Proprietor Businessman Service Worker 34 ge 16 18 30 18

S e rie s 1

Consumer Behaviour Towards The Shopping Malls

Laborer Student Other

2 2 14

Fig 7.0 No of respondents Occupation Of the head of the family 100 80 60 40 20 0

Professional /technical

Businessma n

Manager/Pr oprietor

Occupation

From the above result we can see that 30 % o the respondent were from the business family, and next them are service worker or manager or proprietor of the business. Section B 1. Frequency of consumers they go for shopping Table 1.0 Frequency of Percentag shopping e Daily 2 Once in week time Once days Once month Rarely Total 35 28 in 15 32 in 28 10 100

Laborer

Student

Service Worker

Consumer Behaviour Towards The Shopping Malls

Fig 1.0 Frequency of shopping

No of respondents 100 80 60 40 20 0

28 2 Daily

32

28 10

Once in Once in Once in week 15 days month time Time

Rarely

From the above result we can see that the people of Amritsar go for shopping once in 15 days time, and around 28 percent of the respondent goes once in week time for shopping purpose. 2. Products Purchased Table 2.0 Percenta Products ge Cloths/Garments 48 Cosmetics and Medicines Music 21 and 10 13 3 5 100

Entertainment Footwear Consumer Durable Food Total

Fig 2.0 36

Consumer Behaviour Towards The Shopping Malls

No Of respondents

Products Purchased
100 80 60 40 20 0 Consumer Durable Music and Entertain ment Cosmetic s and Medicines Cloths/Ga rments Footwear Food
8 Children

Products

48 % of the respondents go for purchase of cloths, ready made garments. They purchase these garments from the shopping centres, discount stores. A substantial number i.e. 21% of the respondent also go for shopping for the purchase of cosmetics and skin care products. Consumer goods are in lower priority. 3. Preference of consumer to go shopping along with. Table 3.0 Percenta Preference Alone Husband/Wife Friend Whole family Children Total ge 6 4 60 22 8 100

Fig 3.0

No of respondents

Preference of consumer to go alongwith

100 80 60 40 20 0 60 6 Alone 4 Husband/ Wife Friend 22 Whole family

37

Preference

Consumer Behaviour Towards The Shopping Malls

From the graph it is clear that the respondent prefer to go shopping along with their friends , around 60 % preferred to go along with friend which help them to choose the shopping mall, stores, help to make decision during selection of the product, also substantially family shopping is also popular in Amritsar . 4. Aware ness of the different shopping center, malls, hypermarket. Table 4.0 Number Shopping Centers The Central Mall Vishal Mega Mart Pink Plaza Ansal Plaza Omaxe Mall Subhiksa The Celebration Mall Nehru Complex aware of 66 84 74 32 26 16 20 28 of respondent

Fig 4.0
Awareness of shopping malls
100 50 0 The Central Mall Ansal Plaza The Celebration Mall

Shopping centers

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Consumer Behaviour Towards The Shopping Malls

From the above table and graph we can see that Vishal Megha Mart is known by most of the people , which is the first hypermarket of the Amritsar. Next the Central Mall which is also located at highly dense area is popular in the Amritsar region. Also some of the respondents responded regarding their awareness of the upcoming malls like The Omaxe Mall, The Celebaration Mall, discount store Subiksha. 5.Consumer perception towards the Supermarket, Departmental stores, Hypermarket, Shopping Malls. Ratings on a 5 point scale ranging from 5 (Strongly agree) to 1 (Strongly disagree). And further factor analysis was used to find out the major factors. Table 5.0 FACTOR Quality Price Good Selection High Fashion Good 1 0.643 0.63 0.702 0.706 0.816 2 -0.393 -0.151 -0.383 -0.236 1.66E-04 0.613 0.451 -7.79E-02 0.201 2.70E-02

Service Easy to 0.613 shop in Friendly Latest variety Floor Display Parking 0.678 0.738 0.704 0.685

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Consumer Behaviour Towards The Shopping Malls

From the above table we can see that two factors were extracted the various factor, consumer perceives good service was provided at the shopping malls. Second factor as easy to shop is identified, shopping malls is perceived to provide the easy shopping due to its convenient location and wide area. 6. Characteristic of the supermarket, departmental stores, shopping malls. . Ratings on a 5 point scale ranging from 5 (Strongly agree) to 1 (Strongly disagree). And further factor analysis was used to find out the major factors. Table 6.0 Factor Modern looking 0.694 Visually appealing 0.74 Easy for customer to move around 0.637 After sales servcie 0.452 Error free sales -2.54E-02 Behaviour employees 0.514 Instill confidence -0.28 Safe in transaction Courteous treatment 0.586 40 0.252 0.396 0.265 -0.386 0.609 -0.219 of 0.468 0.47 0.632 -0.13 -0.387 0.391 -0.301 -0.47 3.86E02 0.148 1 0.7 2 -0.168 3 -0.174 4 0.12 9 0.17 1 0.34 5 5.45 E-02 3.59 E-02 0.44 1 1.47 E-02 0.66 4 -

Consumer Behaviour Towards The Shopping Malls

0.11 0.288 Convenient hours 0.578 Credit card facility 9.01E02 4.56E02 0.391 0.671 9 7.11 E-02 0.54 3

Above results is obtained from the factor analysis , four factor is extracted from the different characteristics of the supermarket, shopping malls, hypermarket. First factor is related to the easiness of the consumer movement in these stores. Second factor we can see that error free sales and behaviour of customers has high coefficient so these can be instill error free sales build confidence in customers. Third factor is regarding the convenient hours of opening of these shopping malls. The last fourth factor is related to the safety in transaction as less chances of being deceived. 7. Views related to shopping issues at the shopping malls, hypermarket, and supermarket. Ratings on a 5 point scale ranging from 5 (Strongly agree) to 1 (Strongly disagree). And further factor analysis was used to find out the major factors. Table 7.0 Factor Small 1 0.393 2 0.709 0.529 3 -0.151 0.581

supermarket Like super 0.293 marketing shopping Buy daily use goods. 0.409 Makes too much 0.19 money New grocery 0.447 0.705 41

0.59 0.339 0.315 -3.66E-

-0.349 0.497 -0.626 0.313

products Meetings needs

Consumer Behaviour Towards The Shopping Malls

Find easily

the

products 0.642 0.682

02 3.49E02 -0.532 -0.504 -0.265

0.189 -4.30E03 4.96E02 -0.233

Saves time Computerized checkout Branded under one roof

0.671 goods 0.663

Above table explains that there are three factors extracted though the factor analysis related to shopping issues. First factor is related to meeting the needs of the customer. Consumer purchased goods to meet their needs. Second factors is related to purchase at nearby small market rather than big shopping mall. Third factor is related to the consumer likes, as it explains that consumer likes the supermarket shopping.

CONCLUSIONS & RECOMMENDATIONS

42

5 2

CHAPTER

SUMMARY,

Consumer Behaviour Towards The Shopping Malls

The objective of the survey was to study consumer behaviour towards the shopping malls. In other words we can say to study the consumer attitude towards the shopping mall purchasing and for this the following research methodology was adopted. Universe of the study The universe of the study was limited only to the consumers of Amritsar region. Sampling The sample sizes of 100 respondents were selected for this survey as per convenience due to time constraints. Data Collection and Interpretaion Primary data was collected through the structured questionnaire. Secondary data was collected from various journals, websites, magazines, dailynewpapers. The information obtained was analysed using the statical software package SPSS 10.0 then the data was interpreted according to its significance. The main conclusions are as follows. ( ) The survey reveals that mostly the single/ unmarried person preferred to go shopping with their friends who help them for decision making. (2) The graduated & post graduated consumers with income between 20,000 to 30,000 prefer to go shopping once in 15 week time. So, these is increased in the Income, which has increased the consumption pattern.

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Consumer Behaviour Towards The Shopping Malls

(3) The survey reveals that consumer mostly go for the purchase branded ready made garments / cloths at the shopping malls. (4) A high percentage of the people of Amritsar are aware of the Amritsar first hypermarket Vishal Mega Mart & The Omaxe Mall &The Celebration Mall. (5) Two factors were identified through factor amalysis regarding the consumers perception regarding the shopping malls, hypermarket, departmental stores. Good service and easy to shop in are the factor perceived by customer regarding the shopping malls. (6) Four factors were identified through factor analysis regarding the characteristics of the departmental stores, shopping malls, and hypermarket. Easy for customer to move around, error free shopping, convenient location & sales person behaviour which instill confidence are important characteristics explained by this research. (7) Three factors were identified through factor analysis regarding the shopping issue, these factor were meeting the consumer needs, consumer preference toward the small supermarket , and consumer liking towards the supermarket shopping.

SUGGESTIONS 44

Consumer Behaviour Towards The Shopping Malls

(1) The opening hours is an important issues perceived by consumer which is perceived by consumer, which shopping malls owners should take care of. (2) Sales person at these shopping malls, hypermarket must be courteous and polite to built the long term relation with the consumers. (3) The consumer still perceives that price at these stores are higher so it should be brought down such that it suits all segment of the society. (4) The location and parking at the shopping malls is an important factor which is perceived by the consumer. (5) Consumer behaviour is changing with the increase income so, there is more potential in the retail sector for which more malls, hypermarket should be built to gain the advantage.

45