customer shopping behavior

8/14/2019 Customer Shopping Behavior

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Unorganized Retail vs. Organized RetailSector in Mumbai, India

CUSTOMER SHOPPINGBEHAVIOR

Pankil Chugh 204

Jai Awatramani 402Himmat Sandhu 416Shikhar Tyagi 423Aliasgar Navagharwala 425

MBA(Tech.) Class of 2004-09, NMIMS, Mumbai,


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ChronologyIndian Retail ScenarioObjective of the survey

Questionnaire

Findings

Recommendations and learnings


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Indian Retail Scenario12 million retailersDominated by dukandars

Total retail market size in India in 2008:USD 353 bn

Annual growth rate (2008): 12%

Present share of organized sector: 7%

Expected investment in modern retailing:

USD 25-30 bnin next 4 years


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Organized Sector in IndiaModern formatChain stores

TypesSpecialty stores

Discount stores

Hypermarkets

Supermarkets

Convenience stores

Department stores

Malls


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Classification of IndianCustomers

Source: Future Group Research, Published in book It happened in India by


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Emerging trends in consumersincome and consumption pattern

Growing prosperity

Increase in sizable disposable incomePlace is no more importantHigher proportionate rural expenditureYoung population with higher purchasing

power


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NeedRecognition

InformationSearch

Evaluation

Choice

STAGES SELECTING A SELECTING

THE BUYING


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Evaluation of AlternativesMultiattribute Attitude ModelCustomers see a retailer or a product as a collection of

attributes or characteristics

Designed to predict a customers evaluation of aproduct or retailer based on:

Performance on several attributes Importance of those attributes to the customers

Attributes and importance weights are chosen as criteria

Alternatives compared against the criteria


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Importance Weights


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Research Design andMethodoloExploratory research conducted in MumbaiFocuses on customer shopping behavior in

Indian scenario among different formats, i.e.organized and unorganized


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QUESTIONNAIRE


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Objective behind theuestionnaire

To identify the various factors that affect thechoice of format viz. Organized/ UnorganizedRetail.

The perceptions and the attitude towards

both the formats.The type of goods customers prefer to

purchase from each format.

Findings that can help the organized and the

unorganized retail gain its key strength andweaknesses.

Sample Size: 40


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Customer Attributes affecting choiceof format

SEX

AgeGroup

Numberof

Members

in Family

Occupation

Location

Organized-

Unorganized Retail


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Other factors checked

We believe this is a big factor that affects the usage offormats, in urban areas, SEZs the out of city crowd iscompletely unaware of the local market, the local

language(Chennai) and the local behavior(generalbargaining rates), thus they may choose to shop from

Some Customer would shop some particular items fromOrganized Retail while some items from unorganized retail


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Which are the possible shops?


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What do you shop, how often andfrom where?


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What do you shop, how often andfrom where?

Items which are purchased on a daily basiswill be preferred on basis of closeness to thestore(organized/unorganized)

For items which customer prefer to purchase

once in a week, have a higher probability ingoing in for organized retail.

What is the frequency of purchase eatableitems of customers going to each of the

formats as they contribute highest to thesales


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Reasons for preference to each of theformats: May be its a Customer

11.) Why do you prefer to go for Organized Retail formats?

12.) Why do you prefer to go for Organized Retail formats?


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Comparing Organized/UnorganizedRetailing on various attributes that decide

13.) Kindly rate the below of an organized retail andunorganized retail based upon your preference


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Any other comments from thecustomer and

Comments given bycustomers bring points

which are nevercovered within the

Lets us know if customer isdissatisfied with the current


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Organized Retail

An Analysis of Consumer Preferences


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A Few Big Players are Dominating theMarket


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Types of Purchases Made inOrganized Retail

F

F

FD Dail Weekl Fortnigh Monthly of


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Top 10 Reasons Why ConsumersPrefer Organized Retail


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Consumer Rating on VariousCriteria


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Customers Want FurtherImprovement


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To Sum it Up

Consumers prefer organized retail outlets for

FMCG products that are bought in largequantities and for a larger duration of time.They also perceive it as a family outing andare drawn towards it due to its convenience,variety and special offers.


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Unorganized Retail

An Analysis of Consumer Preferences


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What Do Consumers Buy fromUnorganized Retail

F

F

FD Dail Weekl Fortnigh Monthly of


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Top 10 Reasons Why Customers PreferUnorganized Retail

C R ti f V i


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Consumer Ratings for VariousCriteria


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Aspects That Put Consumers off


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In a Nutshell

Consumers prefer unorganized retail outletsfor items that have low shelf life and are

consumed on a daily basis (such asvegetables). Logistical convenience and asense of personalization are key driversfor consumers to continue shopping at


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Comparison


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Organized Vs Unorganized

Organized Retail

Unorganized


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Organized Vs UnorganizedOrganized Retail

Unorganized


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RECOMMENDATIONS


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Unorganized Retail

Needs to be clean and a bit organizedRequires Planning

Increase the number of brands

Staff needs to be trained

Good Quality

Replenishment of stock

Warranty scheme


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Organized Retail

Need more Fresh productsHome delivery

Quality can be improved - freshness

Online shoppingRequire more counters on weekends

Tendency to shop for unnecessary thing just because youlike the offer.


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LEARNING


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Consumer Behavior

Attitude development and changeIntention to buy

Experiential involvementEmotional response

Store choice v/s Brand ChoiceInformationPrint Ads

Friends

H d h il


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How does the retail consumerthink?

customer shopping behavior

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