volume 3 issue 2 october 2015 issn: 2347-1697 ... · international journal of informative &...

418

Available online through - http://ijifr.com/searchjournal.aspx Accepted After Review On: October 17, 2015

Published Online On: October 21, 2015

International Journal of Informative & Futuristic Research

ISSN: 2347-1697 Volume 3 Issue 2 October 2015

Abstract

Indian retail industry is largely unorganized but is growing rapidly into organized sector. With increasing disposable incomes, increasing business activity and expansion of modern retail outlets with diverse formats, the retail sector in India is poised to grow exponentially. Currently, India ranks fourth among the surveyed 30 countries in terms of global retail development. The Indian retail market size in 2010 was estimated at US$ 353 billion and is expected to reach US$ 543 billion by the end of this year. Now days, there has been a stiff competition in the modern retailing sector. This has forced the retailers to pay considerable efforts to attract the consumers to their stores, has been increasing the frequency and amount of purchase available. Therefore, the significance of enabling store loyalty and developing innovative strategies towards this have been highlighted. In this study it is aimed to determine the effect of the satisfaction, trust-value perception and store image variables on the consumers’ retail store loyalty in Surat City. Value-trust perceptions have effect on satisfaction and store loyalty of the customers.

1. Introduction

Retailing plays significant roles in the consumption forms and manipulates the preferences to

choose to social life increasing the life values involved. Today, Retailing is important powering

task rather than the producer. Increase in the number of the competitor brands in the market has led

the firms to concern of being able to obtain more shares from the retail market. This situation has

made the retailers highly advantageous. In addition to this, now days the fact that these retailers

create their own brands and offer them to the market with less cost with great values in comparison

Factors Affect To Choose Retail Stores

In Surat City – An Empirical Study Paper ID IJIFR/ V3/ E2/ 025 Page No. 418-426 Research Area Retail Management

Key Words Value Perception, Store’s Loyalty Factors, Retail Store Image, Consumer

Behavior

1st Bhaumik Shah

Assistant Professor,

Department of Commerce

Bhagwan Mahavir College of BBA,

Surat(Gujarat)-India

2nd

Dr. Arun Adhikari

Associate Professor,

Department of Management

Sardar Vallabhbhai Patel Institute of Technology,

Vasad, (Gujarat)-India

419

ISSN: 2347-1697 International Journal of Informative & Futuristic Research (IJIFR)

Volume - 3, Issue -2, October 2015 Continuous 26th Edition, Page No.:418-426

Bhaumik Shah, Dr. Arun Adhikari :: Factors Affect To Choose Retail Stores In Surat City – An Empirical Study

to the nation-wide brands have strengthened their position in the market. This advantageous

position of the sector has attracted new investors and increased competition in retail sector. Today,

due to increasing competition in modern retailing sector, retailers making considerable efforts to

commit more consumers to their stores, and have made increase the frequency and amount of

purchase available. Therefore, the importance of strengthening store loyalty and developing new

strategies towards this have been highlighted. In this study we aimed to determine the effect of the

satisfaction, trust, value perception and store image variables (service quality, store atmosphere,

comparative price perception, discount perception, retail store opportunities, post purchase

applications, product quality perception and retail store location) on the consumers‟ retail store

loyalty in Surat city. The study consists of two parts. In the first part, theoretical information about

the store loyalty and the variables determining this loyalty were given. In the second part, the

variables that affect consumers‟ retail store loyalty were attempted to determine. Firstly it is

determined whether the store image variables are effective on value-trust perceptions. Later the

effect of trust-value perception on satisfaction and store loyalty are investigated.

1(a) Unorganized Retailing

Unorganized Retailing refers to the traditional formats of low-cost retailing. Indian retail is

dominated by a large number of small retailers consisting of the local kirana shops, owner-manned

general stores, chemists, footwear shops etc.

1(b) Organized Retailing

Organized Retailing refers to trading activities undertaken by licensed retailers, that is, those who

are registered for sales tax, income tax. These include the corporate-backed hypermarkets and retail

chains, and also the privately owned large retail businesses.

2. Literature Review

Today, attracting new customers has become so important in modern retailing in addition to loyal to

them and efforts have been paying in that perspective as known, the cost of keeping consumers

present is less than the cost of gaining new customers (solomon, 2007). Moreover, it is argued that

the success of any firm, in long term, is dependent upon the number of regular consumers rather

than the number of the consumers who only purchase its products (carpenter, 2003). Therefore,

consumer loyalty has the key role for the success of a firm in the market.

Loyalty is generally defined as the dependence of a costumer on a certain brand and the strong

attitude that leads him or her to sustain this relationship with this brand (uncles, et al., 2003). As for

brand loyalty, however, there are some strong beliefs and attitudes that encourage these repetitive

purchases (solomon, 2007). Through these definitions, loyalty is defined as the tendency to buy the

product and service again or becoming a patronage of it (oliver, 1999). In repetitive purchases

towards more advantageous options, the direction of the purchase can change. Considering these

two features, the comprehensive definition of brand loyalty is given as follows: the consumer‟s

having positive feeling toward the brand, buying the brand involved more frequently in comparison

with other brands, going on buying it, and using it in longer term (odabasi and baris, 2002). There

are close relationships between brand loyalty and store loyalty. In case the consumers‟ brand

loyalty toward a certain brand is strong, and that the store offers to sale this brand affects the store

preference. Likewise, when the costumer does not have enough information about the product or if

it is risky, then the costumer firstly decides about the brand and later determines the store where to

buy this product. Sometimes, the brand of the retailer is effective on the decision of the store

(assael, 1992).

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3. Objective Of study

i.) To know major factors influencing on customer preferences towards mall.

ii.) To study factors affecting on buying behavior of customers.

iii.) To study of customer preference towards Big Bazaar in city Surat.

4. Research Methodology

Below given research methodology has been used in order to achieve the objectives.

Research Instrument: A questionnaire was developed with the help of the theoretical

background. It consisted of 9 close ended questions which consisted related factors the

customers see in the retail outlets. A five-point Likert scale ranging from strongly agrees

(1) to strongly disagree (5) was related to each identified attribute.

Data Collection: Data was collected outside 1 major retail outlets of Surat i.e. Big Bazaar.

The consumers who have just shopped at this retail outlet were able to generate an

appropriate response.

Sample Size: Convenient sampling method was used for data collection. 280 consumers

were interviewed from sampled retail outlets.

Research Design: Descriptive research design.

5. Factors Considered For The Research

Table 1: Factors Considered For The Research

Sr. No. Research Factors Categories

1 Quality • Quality of product

• Well – Known Brand

• Existence of well-known brand

2 Price • Price level

• Discount days

• Issue store cards

3 Location • Close to Home

• Close to Work

• Traffic and Easy Parking

4 Product Variety • Products Variety

• Ready Meals

• Frozen Foods

• Vegetables and Fruits

5 Store Ambience • Cleanliness

• Spaciousness

• Layout design

• Ease of Shopping

• Ease of driving Trolleys

6 Service • Time of waiting Queue

• Exchange Guarantee

• Cash back offer

7 Store Personnel • Staff behaviour towards customer

• Number of Staff

• Neat and Tidy staff

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32%

13%

55%

Organized Unorganized Both

6. Data Analysis

6.1 Customer’s Gender

Figure 1: Particular Of Customer’s gender

Interpretation- Above table shows that the proportion of women visiting mall is slightly more than

the men.

6.2 Types of retail store preferred for shopping

Figure 2: retail store preferred for shopping

Interpretation: Another component of the purchase pattern was the type of retail store that the

respondents preferred for shopping. Above table shows that organized retail store most preferred by

respondent for shopping.

47%

53%

Male Female

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6.3 Profession of respondent visiting mall

Figure 3: Profession Of respondents

Interpretation: Above table show that profession of respondents visiting Big bazaar.Women make

the major part of the population visiting mall, followed by working professionals and students. The

reason why house women are at the 1st rank is probably because attitude of house women have

been changed.

6.4 How often you go to a mall?

Figure 4: %age of Respondents visiting Mall

Interpretation- Above table shows that describes the frequency of visits by the respondents to Big

bazaar ,most of the respondents said, often they visit to mall.

16%

27%

30%

20%

7%

Businessman

Service

Housewife

student

other

Regularly 11%

Often 59%

Very often 13%

Hardly 17%

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6.5 Average time spend for shopping ( in Hours)

Figure 5: Average time spend by the respondents for shopping

Interpretation: Above table shows that maximum customer spends 1 to 2 hours for shopping in

mall. Also minimum customer spends more than 3 hours for shopping.

6.6 Preferred Mode of Payment

Figure 6: Mode of payment used by respondents

Interpretation: Above table show that nearly 68% of the consumers preferred to pay their bills

through cash only a 32% paid through credit or debit cards.

Less than 1 30%

1 to 2 42%

2 to 3 19%

More than 3

9% Other 28%

66%

10%

24%

Cash

Debit Card

Credit Card

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6.7 Factors that customers give preferences to their needs

Figure 7: Customer Preferences as per needs

Interpretation : Respondents were supposed to rate various features of Big Bazaar from

„Excellent‟ to „Very Bad‟, Most of the Customers says that price, service, quality, variety of

product and location are good.

6.8 Various Features Of Big Bazar

Figure 8: Various Features Of Big Bazar

Price Service Quality Variety Location

Excellent 88 8 65 60 32

Good 167 140 165 165 156

Average 15 83 33 32 60

Poor 9 37 12 18 23

Very Poor 1 12 5 5 9

88

8

65 60

32

167

140

165 165 156

15

83

33 32

60

9

37

12 18 23

1 12

5 5 9

0

20

40

60

80

100

120

140

160

180


Excellent(5 Points)

440 30 305 280 130

Good(4 Points)

628 536 644 640 604

Average(3 Points)

33 237 87 84 168

Poor(2 Points)

8 58 16 28 38

Very Poor(1 Points)

2 12 1 2 8

440

30

305 280

130

628

536

644 640 604

33

237

87 84

168

8 58

16 28 38 2 12 1 2 8

0

100

200

300

400

500

600

700

425




6.9 Customer’s Preferences About Big Bazar Features

Figure 9: Respondents preferences for features

Interpretation: Based on the weights multiplication, we have been able to rank the factors

impacting preference of Big Bazaar. Graph shows that Price was the number 1 criteria based on

which respondents visited Big Bazaar. And Service was the last thing they were looking at when

they visited Big Bazaar.

6.10 Attracts to offers provided by the mall

Yes – 87%

No – 13%

7. Finding

• The customer considers Location, Product Variety, Product Quality and price criteria while

shopping.

• Organized retail store most preferred by respondent for shopping.

• House women make the major part of the population visiting mall, followed by working

professionals and students

• Advertisement and promotion effects on customer buying decisions.

• Offers/discounts provided by mall effects on customer buying decisions.

8. Conclusion

As we all know that the retail stores now days have got cut throat competition. In such a scenario,

these retailers should learn the buying behavior as well as the preference of the customers The

study focused out the major attributes. The factors are availability, variety, service, discounts &

price, quality of products and promotion. The knowledge of these factors is helpful to the retailers

to formulate new strategies and attract more and more consumers. By studying this we conclude

that Advertisements & offers provided by mall effects on customer buying decisions. A customer

who visits to Big Bazaar mall gives preference to Product price, quality and variety.


Particular 1109 873 1053 1034 948

1109

873

1053 1034 948

0

200

400

600

800

1000

1200

426




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