perception of unorganized retailers towards b2b ......unorganized retail – it consists of...
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PERCEPTION OF UNORGANIZED RETAILERS TOWARDS
B2B WHOLESALERS -METRO AND BEST PRICE
DR. D.PRASANNA KUMAR
Associate Professor, K L U Business School,
Guntur, Andhra Pradesh, India
K. VENKATESWARA RAJU
Research Scholar, K L U Business School, Guntur,
Andhra Pradesh, India
ABSTRACT
Keywords: Trust, Consumer perception, Brands, B2B markets, Industrial Brand Equity, Service
Introduction
The Indian retail sector is witnessing tremendous growth with the changing demographics and an
increase in the quality of life of urban people. Retail Sector is the most booming sector in the Indian economy.
Effective pricing tactics are the most effective competitive behavior for small merchants in hostile
environments. Satisfying selective markets appeared to be the most effective competitive behavior. With the
entry of big players like Wal-Mart and Metro, the B2B segment has shown positive trends in the recent times.
Our modern world is very complex, and so is the business world. There are many things that influence the
behavior of the consumer. These influences can be religion, ethnic group, social class, age, gender, values, etc.
But what is even more important than the different stimuli itself is how consumers perceive, process, interpret
and store the stimuli. This work will describe what perception is, how consumers perceive and how this
scheme can be used by marketers.
“If you do not measure it, then you cannot manage it!”
At the beginning of the 21st century it is widely accepted that existing Customer Relationship
Management (CRM) solutions have much room for improvement. Consumer is the one who buys a product or
service and uses its complete benefits by consumption. Resealing of products or services is not the duty of a
consumer. Exhibiting behavior by consumer while knowing, evaluating and purchasing a product in general
we call it as consumer behavior. The major factors that affect the consumer behavior are geographical,
demographical, psychological and behavioral. B2B model also known as Business to Business model is the
one whose consumers and sellers are business units.
International & Indian retail sector is witnessing one of the most hectic Marketing activities of all
times. The companies are fighting to win the hearts of consumer who is God said by the business tycoons.
There is always a ‘first mover advantage’ in an upcoming sector. In India, that advantage goes to “Wal-Mart
& Metro”. It has brought about many changes in the buying habits of people. It has created formats, which
provide all items under one roof at low rates, or so it claims. In this project, we will study the perception of
consumers regarding the success of Wal-Mart & Metro.
This research makes an attempt to study and analyze the exhibiting behavior of consumers especially
in B2B model. Cost, exploitation and productivity play vital role in B2B consumers. Business to business
model is the one whose sellers and buyers are business units. In today’s rapidly changing competitive
environment, service firms are quickly discovering that far greater profits are yielded from harvesting existing
accounts than from cultivating new customers.
Industry profile: Retail industry can be classified into two broad categories – organized retail and
unorganized retail.
Organized retail - Those traders/retailers who are licensed for trading activities and registered to pay taxes to
the government
In the competitive world Customers & Consumers are treated to be most important to the
Business Organization. If the consumers are satisfied with their service and their quality of products
provided by the Wholesale Stores, then that experience would help the organization to become market
leader. The study is conducted to know perception and awareness of local unorganized retailers towards
modern wholesalers like Best Price & Metro with a sample size of 110. This study deals with the B2B
business of unorganized retailers with Best Price. The main objective of this research is to know the
factors that an unorganized retailer considers before choosing wholesalers. The major factors to be
identified are quality, low price, trust on wholesaler, and on time delivery. The purpose of this thesis is
to specify and test factors surrounding trusting relationships between buyers and suppliers in a global,
business-to-business services context. It also focuses on perception of retailer with reference to Best
Price & Metro and considers factors like location, timing, and availability of variety of products.
Unorganized retail – It consists of unauthorized small shops - conventional kirana shops, general stores, corner
shops among various other small retail outlets - but remain to be the radiating force of Indian retail industry.
According to AT Kearney, The Windows of Opportunity shows that Retailing in India was at opening stage in
1995 and now it is in peaking stage in 2006. India is the most compelling opportunity for retailers, because
now India is in peaking stage.
This window of opportunity is useful for executives who plan their market-specific strategies the four stages
are as follows:
Opening:
An opening market is one that is just entering the GRDI, which is, in this stage all, which are outside
the top 30 markets, falls in this stage. At this stage, retailers should monitor and performing high-level
assessments, they should plan for their entry strategies. India in the late 1990's is a good example in the
opening stage, while in 2006; Kazakhstan is the country in opening stage.
Peaking:
In peaking stage, the market is developing quickly and also ready for modern retailing. Countries,
which are in Peaking stage, are India, Ukraine and Vietnam. Retailers entering this stage have the best chance
for long-term success. Retailers at this stage should enter through local representations, sourcing offices and
new stores. Wal-Mart success in china in the late 1990's and early 2000's gives us the importance of
committing to a promising high-growth market at right time.
Declining:
In this stage the market is still big and growing, but the space for new entrants will become tighter
and retailers should act quickly at this stage because retailers at this stage have limited time to explore, and
also their margin for error is thin. In general, they should act according to the established rules and should be
open to face the competition from international retailers.
Closing:
The window of opportunity is closing fast and modern retail share is reaching 40 to 60 per cent.
Though the opportunity is closing the existing retailers can enter with new formats such as discount models or
non-food formats such as consumer electronics and apparel. Window of opportunity ends for about 5 to 10
years before a market enters the closing phase and reaches saturation level. India for example, was in the
opening stage in 1995 and entered peaking stage in the year 2003 and reached number 1 rank in2005.
Bharti Wal-Mart Private Limited
Bharti Wal-Mart Private Limited is a business-to-business (B2B) joint venture between Bharti
Enterprises and Wal-Mart for wholesale cash-and-carry and back-end supply chain management operations in
India to serve small retailers, manufacturers and farmers. The joint venture (JV) has already set up a
Distribution Centre in Punjab which will partly service the merchandise needs of the JV’s cash-and-carry
stores as well as retail stores around the area, including Bharti Retail’s wholly owned Easy Day stores. The JV
launched its first B2B wholesale cash-and-carry store in Amritsar in May 2009. A typical cash-and-carry store
will stand between 50,000 and 100,000 square feet and sell a wide range of fresh, frozen and chilled foods,
fruits and vegetables, dry groceries, personal and home care, hotel and restaurant supplies, clothing, office
supplies and other general merchandise items. The JV is expected to open 10 to 15 wholesale cash-and-carry
facilities and employ approximately 5,000 people over the next three years.
Generating Local Employment:
As part of its pledge to make a meaningful difference to the communities it serves, Bharti Wal-Mart
is committed to generating employment opportunities for the local youth. Over 180 candidates trained at the
Bharti Wal-Mart Training Centre, India’s first special skills training centre launched by Bharti Wal-Mart in a
public-private partnership with the Government of Punjab, have already been recruited in Amritsar. The
Training Centre which offers 100% scholarship to all enrolled candidates, aims at bridging the shortage of
skilled workers for cash-and-carry and organized retail formats, thereby creating employment opportunities for
the youth.
METRO:
METRO Cash & Carry is different from B2C retail chains (such as Wal-Mart, Carrefour or Tesco) in
that its business concept is targeted towards professional customers rather than end consumers. The cash-and-
carry concept is based around self-service and bulk buying. METRO Cash & Carry serves to registered
customers only. Core customer groups are hotels, restaurants, caterers, traders and other business
professionals.
The first METRO Cash & Carry wholesale center in India opened in Bangalore in 2003. Currently
there are 15 wholesale centers in operation, including two in Bangalore and two in Hyderabad of which one
was opened on 30 November 2006. The first Mumbai store was opened in 2008 at Bhandup. The Kolkata store
located at Kalikapur, EM Bypass was opened in 2008. A Metro Cash & Carry store was opened at Ludhiana
city in Punjab in the first week of September 2011, located on the Jallandhar Bypass road. The second store in
Mumbai was opened on 17 November 2011, near Western Express Highway, Borivli (E). In the beginning of
2012 Metro opened 2 more stores in northern India including one in New Delhi and another in the City of
Jaipur, with plans to open more.
Importance of wholesale in retail sector
Wholesaler may be defined as the middlemen who operate between the producers (from whom they
purchase goods) and the retailers (to whom they sell goods). Wholesaler refers to any individual or business
firm selling goods in relatively large quantities to buyers (retailers) other than the ultimate consumers. Thus
the manufacturers who sell their products directly to retailers may also be regarded as wholesalers. The
specialized knowledge and skill of wholesalers increases the efficiency of the distribution network. The
wholesalers provide important services and solve the problems of both the manufacturers and the retailers.
Services provided by the wholesalers to the retailers:-
They act as the retailers 'buying agent' and saves them from the trouble of searching out and assembling
goods from several manufacturers.
They inform the retailers about the new products, its uses and changes in their prices. They also assist the
retailers in advertising and selling of the products.
They provide financial assistance to retailers, sell goods on credit to retailers and thus help them to operate
with small working capital.
A wholesaler being the ware-house keeper of the market, they protect the retailers from the risk of loss
arising from holding large stocks of the product.
They may also sort out different grades of products according to quality and pack the goods into small lots
for the retailers.
Literature Review
Consumer perception theory is any attempt to understand how a consumer’s perception of a product
or service influences their behavior.
B2B (Business to Business):
The exchange of services, information and/or products from one business to other, as opposed to that
is between a business and a consumer.
The study by James M. Barry & Russell Abratt (2007) states that there is an influence of trust
building behaviors (social interaction, open communications, customer orientation) and service outcomes
(technical, functional and economic quality) on trust formation. Trust is shown to have a positive influence on
key relational outcomes, loyalty commitment and share of purchases. To support the influence of trust on
loyalty commitment and expanded patronage in a B2B services setting.
In another study,the authors (“kusuml.ailawadi, jie zhang, Aradhana Krishna, and Michal.w. kruger”)
conduct a systematic examination of incumbent retailers’ reactions to a Wal-Mart entry in their local markets.
The analyses include seven Wal-Mart supercenter entries and are carried out using detailed store movement
data for 46 product categories from a large number of supermarkets, drugstores, and mass store.
In one of the article the authors (deepika jhamb, ravi kiran) said that the retail has been ascertain that
share of organized retail is increasing in India as consumers are accepting the new trends of retailing. As per
retailers’ point of view, infrastructure, economic growth and changing demographics are the most important
drivers of retail followed by increase in FDI’s and growth of real estate.
The authors(katrijn gielens, linda m.van de gucht, jan-benedict e.m.steenkamp, marnik g.dekimpe)
examined the effect of Wal-Mart’s entry into the United Kingdom on the performance of European retailers.
Drawing on the marketing, strategy, and finance literature streams, they developed hypotheses as to why some
retailers are expected to be affected differently than others. They examine these incumbents’ reactions not just
on price but also on a variety of other marketing-mix variables. More important, they link incumbent reactions
to Wal-Mart’s impact on their sales. In addition, they explore the factors that may explain differences in
reactions and sales outcomes across retail formats, stores, and categories.
Retailing is one of the largest industry in India and one of the biggest sources of employment in the
country. The results of the study depict that infrastructure, economic growth and changing demographics of
consumers are the major driver of organized retail in India. This was said by authors Deepika Jhamb ,Ravi
Kiran.
With the entrance of big giant retailer like Wal-Mart and Metro in the country what is the effect of
adjacent countries and business cycle in the country mainly focusing on Sales tax revenue, Economic growth
and to find the increase in employment and wages in retail trade sector this was discussed by Michael J. Hicks,
PhD and Kristy Wilburn. The job growth results consistent across the country where the Wal-Mart enters. The
Wal-Mart employees were paid more when compared to other retail trade employees. The location of Wal-
Mart has an additional effect which has increase in Local sales with the entry of Wal-Mart there will be impact
on employees, wages, and economy growth.
It is also said that with entrance of big Retailer in the country how the incumbent retailers’ reactions
to a big Retailer like Wal-Mart entry and the impact of these reactions on the retailers’ sales. They compile a
unique data set that consists of incumbent supermarkets, drugstores, and mass merchandisers in the vicinity of
seven Wal-Mart entries, as well as control stores not exposed to the entries this was discussed by KUSUM L.
AILAWADI, ARADHNA KRISHNA. It was said that incumbent stores’ reactions to a Wal-Mart entry into
their local markets and the consequences of these reactions for the stores’ sales outcomes how incumbents
change their pricing, promotion, and product assortment in reaction to the entry and how their sales are
affected by the entry how these reactions and sales outcomes vary across retail formats, stores, and product
categories and to see whether the incumbents’ reactions influence their sales outcomes. When the big Retailer
enters the market there is certain impact on the local Retailers and on their Sales this was discussed by
KATRIJN GIELENS and STEENKAMP. This validate the findings using three alternative measures of
company performance Percentage growth in the incumbent retailer’s sales, Earnings before interest and taxes
and Return on assets.
Conceptual Framework of Wholesale Market
Figure 2.1
B2B influencing factors: The factors that are influenced by the consumer perception are, long term relations, Quality of
service, Value add-ons, Discounts, Advertisements, Bulk of purchase, Price or Economic, Availability of
products, Trust.
Every consumer will have their own perceptions on the retail sectors.
1. Quality of Service: To distinguish themselves from competitors, retailers not only have to provide a
better service, but also measure whether consumers have a favorable evaluation of their service. “The
secret of successful retailing is to give your customers what they want. And really, if you think about
it from your point of view as a customer, you want everything: a wide assortment of good-quality
merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly,
knowledgeable service; convenient hours; free parking; a pleasant shopping experience.”- Sam
Walton (1918-1992).
2. Value add-ons: The enhancement a company gives its product or service before offering the product
to customers. Value added is used to describe instances where a firm takes a product that may be
considered a homogeneous product, with few differences (if any) from that of a competitor, and
provides potential customers with a feature or add-on that gives it a greater sense of value.
3. Discounts: Discounts are a specific type of marketing promotion in which you invite shoppers to
save money on specific products or product groups. Discounts are a significant part of your online
merchandising strategy. You can use discounts to introduce new products, retain existing customers,
or drive revenue growth.
4. Bulk of purchase: Bulk purchasing is a means of product procurement that involves large orders of
the same item. Bulk purchasing is very popular for businesses and among corporate players, but can
also be profitable for individuals. Bulk pricing is the reason why sets of identical items — anything
from ink pens to oranges — usually cost less than buying the same number of items individually. A
customer who can guarantee multiple sales is often rewarded with a lower price overall. The concept
applies to sales across the board, in many different market sectors.
5. Advertisements: Advertising is mass media content intended to persuade audiences of readers,
viewers or listeners to take action on products, services and ideas. Advertising is the paid,
impersonal, one-way marketing of persuasive information from an identified sponsor disseminated
through channels of mass communication to promote the adoption of goods, services or ideas.
6. Price: In general terms price is a component of an exchange or transaction that takes place between
two parties and refers to what must be given up by one party (i.e., buyer) in order to obtain something
offered by another party (i.e., seller).
7. Availability of Products: Availability is becoming an increasingly important issue for consumers
seeking convenient grocery solutions.
8. Trust: Guarantees are a great way to increase the levels of trust between you and your customers, and
give yourself a competitive advantage. A guarantee is a kind of product insurance, protecting your
customers’ investments if their shopping experience turns out to be less than satisfactory.
Geographical factors: The geographical factors are location, shelf management, display, and ambience.
1. Location: location is the place which is convenient to all the consumers for buying the product.
2. Shelf management: Achieve an organized, polished look to your retail shelves and capture your
customer’s attention every time with our wide array of shelf management products and display
accessories.
3. Display: Knowledge is power and for retailers, product knowledge can mean more sales. It is difficult to
effectively sell to a consumer if we cannot show how a particular product will address a shopper's
needs. Read on to learn some of the benefits of knowing the products you sell.
4. Ambience: arrangements of products in big malls will also affect the consumer perception that in
general we call as ambience.
Perceptual drivers: The following are the major drivers of perception. They are learning, believes, previous experience, word of
mouth.
1. Learning: Learning is the lifelong process of transforming information and experience into
knowledge, skills, behaviors, and attitudes.
2. Believes: Belief is distinct from judgment, which is a conscious mental act that involves arriving at a
conclusion about a proposition (and thus usually creating a belief). Whereas belief is the mental
attitude that some proposition is true rather than false, judgment is the evaluation of a proposition as
reasonable, fair, misleading, etc.
3. Previous experience: Based on the previous experience of the product or service his/her expectations
or the thoughts will differ.
4. Word of mouth: depending on the type of word of mouth communication perceptual levels of
individuals varies. If individual receives positive word of mouth of a product or service then he/she
make an attempt to choose and vice versa.
Outcomes:
Consumer perception will result in two types based on his positive and negative. The two outcomes are repeat
purchase and switch off.
1. Repeat purchase:
Perception is the main thing that effect on purchase. If consumer feels positive then purchase will be
repetitive. Consumer will continuously make the purchases.
2. Switch off:
For a poor perception, consumer of a business shifts to another business. This will happen in any kind of
businesses and the main reason is poor communication so avoid this kind of miss understandings.
Objectives of the Study:
1. To study the consumer perception in B2B environment.
2. To study the buyer – seller relationship for satisfaction.
3. To study buyers repurchase intentions.
Scope of Study The Inferences from the study are based on the responses given by the consumers in a specific area. This study
will be helpful in getting an insight into the perception of Consumers on Advertisements.
Research Methodology
5.1 Research design The study is based on both primary data and secondary data. The primary data was collected various
Best Price and Metro outlets in our state through structured questionnaire for which samples of 110
respondents were selected for this study. The collected samples using convenient sampling method was
validated and took it for further analysis. Secondary data is also been collected from database sites and
articles. The collected data were analyzed with the suitable tools like Chi – Square tools with the following
assumptions were made on the onset of the project.
5.2 Area of the study
The respondents are randomly selected for this study.
5.3 Research approach
Customer Survey and questionnaires method
Survey method is used for collecting data from consumers of various goods at B2B outlets. We
requested all respondents to fill in the questionnaire, by self after explaining the various aspects mentioned in
it. It contained both open and closed ended questions in a structured format very easy to understand on the first
look.
5.4 Sampling Technique
A convenient sample (non – probability sampling method) of 110 consumers was shared up for the current
study in which respondent of the study was request to complete the questionnaire on voluntary basis.
5.5 Sample Size
The Size of the sample taken in this study is 110.
5.6 Period of Study
The study was done during October 2013 to November 2013 timeline.
5.7 Data Usage:
For analysis and interpretation, only primary data is used. However for conclusion and
recommendations both primary and the secondary data along with the verbal knowledge and information
although obtained from respondents, though they are outside the parameters of questionnaire were also
included. The data collected from these sources were analyzed using various tools like percentage analysis,
chi-square test, cross table analysis method.
5.8 Research Instrument:
The data is collected by well developed, structured five point Likert Scale. All of the questionnaires
were distributed among the respondents in the defined areas. The data is collected in a period of 25 days and
the responses were analyzed using the Statistical Package for Social Science (SPSS) version 16.0 for analysis
and evaluation.
5.9 Tools:
Frequencies and cross tabulation have been calculated for the responses of the respondents. Chi –
Square test analysis was conducted on the data obtained using the questionnaire.
Analysis and Interpretation
6.1 General Profile of the Respondents
Table 6.1
Interpretation:
From the above table, we infer that 72% of the total respondents are male and 28% are female. On
further classification according to age group, we find that of all the respondents 26% are less than years old,
44% are of the age group 26-40, 19% of the age group 41-60,11% are above 60 years. From the responses
collected DISTANCE(20%),PRICING(23%),PRODUCT QUALITY(26%),WORD OF MOUTH(29%) are the
major factors influencing the selection of B2B store. Most of the respondents told that the purpose of visiting
the B2B store is BUYING (67%) and also ENQUIRY (25%).
6.2 Respondents views about Advertisements:
Table 6.2
Figure 6.3
6.4 Chi-Square Test
6.4.1. Is There a Relation between INCOME and MONTHLY PURCHASE OF THE RESPONDENT?
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
INCOME * AVGMONTHLYPURCHASE 110 100.00% 0 0.00% 110 100.00%
INCOME * AVG MONTHLY PURCHASE Crosstabulation
Count
AVGMONTHLYPURCHASE
Total 1 2 3
INCOME 1 19 17 6 42
2 16 8 8 32
3 5 6 5 16
4 7 5 8 20
Total 47 36 27 110
CHI-SQUARE:
INCOME
Observed
N
Expected
N Residual
1 42 27.5 14.5
2 32 27.5 4.5
3 16 27.5 -11.5
4 20 27.5 -7.5
Total 110
AVG MONTHLY PURCHASE
Obser
ved N
Expected
N
Residu
al
1 47 36.7 10.3
2 36 36.7 -0.7
3 27 36.7 -9.7
Total 110
Test Statistics
INCOME AVG MONTHLY PURCHASE
Chi-Square 15.236a 5.473
b
df 3 2
Asymp. Sig. 0.002 0.065
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 27.5.
From the above SPSS calculation we infer that there is a significant relation between INCOME and
MONTHLY PURCHASE OF THE RESPONDENT.
6.4.2. Is There a Relation between EDUCATION OF THE RESPONDENT and RECEPTION OF THE
STORE PERSONNEL?
EDUCATION * RECEPTION OF STORE PERSONNEL Cross tabulation
Count RECEPTIONOFSTOREPERSONNEL
1 2 3 Total
EDUCATION 1 24 16 7 47
2 12 9 6 27
3 5 5 6 16
4 5 5 10 20
Total 46 35 29 110
CHI-SQUARE:
Test Statistics
EDUCATION RECEPTION OF STORE PERSONNEL
Chi-Square 20.691a 4.055
b
df 3 2
Asymp. Sig. 0 0.132
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 27.5.
b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 36.7.
From the above SPSS calculation we infer that there is a significant relation between EDUCATION OF THE
RESPONDENT and RECEPTION OF THE STORE PERSONNEL.
6.4.3. Is There a Relation between LOYAL MEMBERSHIP CARD HOLDERS and SATISFACTION
TOWARDS PROMOTIONAL OFFERS?
MEMBERSHIP CARDS * PROMOTIONAL OFFERS Crosstabulation
Count
PROMOTIONAL OFFERS
Total 1 2 3
MEMBERSHIP CARDS 1 27 18 10 55
2 12 12 7 31
3 5 5 14 24
Total 44 35 31 110
CHI-SQUARE:
b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 36.7.
EDUCATION
Observed
N
Expected
N Residual
1 47 27.5 19.5
2 27 27.5 -0.5
3 16 27.5 -11.5
4 20 27.5 -7.5
Total 110
RECEPTION OF STORE PERSONNEL
Observed
N
Expected
N Residual
1 46 36.7 9.3
2 35 36.7 -1.7
3 29 36.7 -7.7
Total 110
MEMBERSHIP CARDS
Observed
N
Expected
N Residual
1 55 36.7 18.3
2 31 36.7 -5.7
3 24 36.7 -12.7
Total 110
Test Statistics
MEMBERSHIP CARDS PROMOTIONAL OFFERS
Chi-Square 14.418a 2.418
a
df 2 2
Asymp. Sig. 0.001 0.298
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 36.7.
From the above SPSS calculation we infer that there is a significant relation between LOYAL
MEMBERSHIP CARD HOLDERS and SATISFACTION TOWARDS PROMOTIONAL OFFERS.
6.4.4. Is There a Relation between AVERAGE MONTHLY PURCHASE AMOUNT and VARIETY IN
PAYMENT OPTIONS PROVIDED?
MONTHLY PURCHASE * PAYMENT OPTIONS Cross tabulation
Count
PAYMENT OPTIONS
Total 1 2 3
MONTHLY PURCHASE 1 19 18 10 47
2 22 9 5 36
3 5 8 14 27
Total 46 35 29 110
CHI-SQUARE:
MONTHLY PURCHASE
Observed
N
Expected
N Residual
1 47 36.7 10.3
2 36 36.7 -0.7
3 27 36.7 -9.7
Total 110
Test Statistics
MONTHLY PURCHASE PAYMENT OPTIONS
Chi-Square 5.473a 4.055
a
df 2 2
Asymp. Sig. 0.065 0.132
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 36.7.
From the above SPSS calculation we infer that there is a significant relation between AVERAGE
MONTHLY PURCHASE AMOUNT and VARIETY IN PAYMENT OPTIONS PROVIDED.
Findings
Many small stationary shop owners are attracted to B2B wholesalers because of the price and
availability of various products and are satisfied with the promotional offers at the stores. Out of 110
respondents maximum people are agree about the quality of products that the B2B stores are providing. Most
of respondents are satisfied with the pricing and agreed with Display of products and brands in the mall.
Respondents can’t say about the Warranty of products and brands given by the stores. Customers are showing
PROMOTIONAL OFFERS
Observed
N
Expected
N Residual
1 44 36.7 7.3
2 35 36.7 -1.7
3 31 36.7 -5.7
Total 110
PAYMENT OPTIONS
Observed
N
Expected
N Residual
1 46 36.7 9.3
2 35 36.7 -1.7
3 29 36.7 -7.7
Total 110
their interest due to the WORD OF MOUTH about the retail store. Customers have overall satisfaction about
the perception towards the wholesale malls.
Suggestions:
•Credit cards must be accepted.
•They are providing the highly discounts melas, but they didn’t providing the exchange facility.
•They have to concentrate more on branded items.
•There is no free delivery facility at Best Price; if Best Price shop provides it the retailers will feel comfort
because the Best Price shop is far away from the city.
Conclusion
Retailing is one of the largest industry in India and one of the biggest sources of employment in the
country. India has witnessed a fast pace of retail development over the past five years. Not only global players
like Wal-Mart and Metro are trying to succeed in our country in the retail sector but also players like Reliance,
Aditya Birla group are also trying their hands in the retail sector. The Organized Retailing is becoming more
important in present days and will certainly improve in the future. With the emerging of big giant retailers like
“Best Price” (i.e. Wal-Mart) there is certain possible that the people in and around the store will be benefited
and will have advantages like Employment opportunities, Retailers satisfied with less cost and products
available in bulk quantity, Country GDP will also increase.
With the entry of big players like Wal-Mart B2B business has shown positive trends in the recent
times. Wal-Mart entered in the name of Best Price and as also Metro into different cities across India. In this
article the main objectives are perception, buyer-seller relationship and repurchased intentions of the
wholesale malls. There is good perception to retailers about the Best Price and Metro. Maximum retailers in
the country know very well about Best Price shop and Metro. The retailers are purchasing products from the
Best Price and Metro for their shop. The retailers are mainly purchasing products from Best Price and Metro
because of three factors, those are
•Quality
• Price
•Bulk of purchase
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