SlideShare una empresa de Scribd logo
1 de 95
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 1
To Study:
The Influence of
Retailers on
Customers Buying
Decision
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 2
Chapter 1
Objective & Scope of
the Study
To Study: The Influence of Retailers on Customer Buying Decision
Objective of the Study
It is in retailing that very drastic changes have occurred during the last two-decades.
Some institutions have disappeared whereas newer ones have been added. This process of
deletion / addition still continues in newer forms. There is large scale retailing shops together
with very small units, both working simultaneously. Thus it is very important for the retailers
to understand the need of the customers & satisfy them to the level required for retaining
them as customers & creating a long term relationship.
Study indicates the preference level of the customers towards retail stores. Study also
focuses on the factors which influence more to customers to visit the retail stores. It reflects
buying behavior of customers & the factors need to be understood by the retailer to satisfy &
build the customers relationship for long term. The study will indicate weather private label
products are preferred or not. It indicates how the retail organizations works & how
important it is to understand satisfaction level of customers towards it. The Study mainly
focus on the following factors;
• To study the level of influence retailer has on customers & the buying
behavior of the customers affecting the working of the retail stores
• To study the preference level, of products to be purchased by customers
from retail stores.
• To identify the qualities and the skills of retailer that impact the buying
decision of the customers.
Mumbai Institute of Management & Research (MIMR) Page | 3
To Study: The Influence of Retailers on Customer Buying Decision
Scope of the Study
The Scope of the Study defines the parameters of the project To Study: The
Influence of Retailers on Customer Buying Decision. It is the borders where the objective,
knowledge, instruction or outcome of the activity is found.
Specification:
- The project was Specific to analyse the buying behavior of the customers from the
retail stores.
- The retail stores were restricted to the local Mom & Pop Stores, Kirana shops & the
neighborhood shops.
Measurable:
- The sample selected was of the Retail Stores & Customer in general of all age group.
- The size of the sample was;
o 100: Retail Stores
o 150: Customer.
Hypotheses:
- The Scope of the research was carried out with the hypotheses assumption;
H0 : (H0 = 0) : There is No Significant impact of the retailers on the buying
decision of the customers.
Ha : (Ha = 0) : There is Significant impact of the retailers on the buying
decision of the customers.
Limitation:
- The project was Limited to the area of Kurla, Chunabhattii & Sion for the period of 2
months (2nd
May 2012 – 30th
June 2012)
Mumbai Institute of Management & Research (MIMR) Page | 4
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 5
Chapter 2
Introduction to
Retail Sector
To Study: The Influence of Retailers on Customer Buying Decision
Introduction to Retail Sector
"Success in business requires training and discipline and hard work. But if
you're not frightened by these things, the opportunities are just as great today
as they ever were"
- David Rockefeller
Selling of Goods & services from the Individual trader or by a business unit to the
end-user or customer is called as retail. It is an important part of everyone’s life which is
mainly based on the supply-chain system. The retailing business is carried out in small
stocks where in the retailer purchases the goods & products from the manufactures or the
wholesaler in huge quantity and sale them in small units & small quantity to the customers
for nominal profit. Retailing also includes service activities where people offer their
knowledge and time to improve productivity, performance, potential, and sustainability,
public utility; etc for the benefit of society. The basic characteristic of this sector is the
production of services instead of end products.
The Retail sector has seen a huge amount of changes in the fast few decants,
especially the Indian Retail Sector. Indian Retail Industry is at a stage where it requires an
explosion to take place within the sector, market our environmental factors around. The
foundation of the retail industry dates back to times where retailing was focusing on the rural
market & customers in the village fairs, Meals or in the weekly markets. These stores were
highly unorganized.
The development of the retail sector took place with the establishment of retail stores
in the locality for convenience. With the government intervention the retail industry in
Indian retail sector took a new phase. Outlets for Public Distribution System, Cooperative
stores and Khaki stores were set up which required low investments for its establishment.
With the growth in the Per Capita Income of individual, rising standard of living etc; the
retail sector in India contributed towards a new aspect with the setting up of the different
International Brand Outlets, Hyper or Super markets, shopping malls and departmental
Mumbai Institute of Management & Research (MIMR) Page | 6
To Study: The Influence of Retailers on Customer Buying Decision
stores. Shopping malls emerged in the urban areas giving a world-class experience to the
customers.
Mumbai Institute of Management & Research (MIMR) Page | 7
To Study: The Influence of Retailers on Customer Buying Decision
The retail industry continued in India in the form of Kiranas till 1980. Soon,
following the modernisation of the retail sector in India, many companies started pouring in
the retail industry in India like Bombay Dyeing, Grasim etc. As has been mentioned earlier
the retail sector in India can be widely split into the organised and the unorganized sector.
The unorganized sector is predominant. We may discuss in detail the different divisions of
the retail sector in India.
Unorganized Retail Sector
The unorganized retail sector basically includes the local kiranas, hand cart, the
vendors on the pavement etc. This sector constitutes about 98% of the total retail trade. But
Foreign Direct Investment in the retail sector is expected to shrink the employment in the
unorganized sector and expand that in the organized one.
Organised Retail Sector
In the organised sector trading is undertaken by the licensed retailers who have
registered themselves to sales as well as income tax. The organised retail sector have in their
ambit, corporate backed hypermarkets and retail chains. The private large business
enterprises are also included under the organised retail category. The organised retail sector
can be further subdivided into:
Instore Retailers: This type of retail format is also known as the brick and mortar format.
These retail stores are in the form of fixed point sale outlets. They are specially designed to
lure the customers. There are different types of stores through which the instore retailers
operate.
Branded Stores appear in the form of exquisite showrooms. Here the total range of a
particular brand is available and the quality of the product is certified by the government.
There are also Multi Brand Specialty Stores that sell a series of brands so that the consumer
can choose from the wide array of brands. Department stores have a large number of brands
and products catering to all basic needs to luxurious items as well. Supermarkets are
basically self service retail stores. Discount Stores offer commodities at reduced prices. In
Hyper Marts customers have wide variety of products to choose from and they are also
available at discounted rates. Convenient stores are located in prominent places within the
reach of majority of the customers and do not operate in stringent work hours. Shopping
Malls are a storehouse of a large variety of retail shops situated close to each other.
Mumbai Institute of Management & Research (MIMR) Page | 8
To Study: The Influence of Retailers on Customer Buying Decision
2.1. Evolution of the Retail Sector
Figure | 2.1 Evolution of the Retail Sector
We in India need solutions tailor-made to our conditions. In a country, where culture
and values play a very huge role in our habits- we have to have Indianised solutions! Ours is
perhaps the only country in the world, where cigarettes are sold in singles and two‘s and not
as packets - forcing the companies to have a robust distribution system – that includes
servicing a pan dabba owner three times with a cycle driven salesman- and offer a few hours
credit.
Today, the Indian consumer behaviour is rapidly changing with a shift in new
generation's preference towards luxury commodities. With new boom in the retail industry,
the country has identified new scope for real estate development. The already revolutionizing
urbanization and growing demand for finished products has necessitated development of new
space for retail outlets. Retail sector essentially targets the middle class and with there being
an estimated more than half rise in middle class the future of retail looks bright.
Mumbai Institute of Management & Research (MIMR) Page | 9
Figure 5.1
Evolution of the Retail
Sector
To Study: The Influence of Retailers on Customer Buying Decision
Old Retail Sector
The era of rural retail industry could be categorized into two formats: weekly markets
and village fairs. Primarily weekly formats catered to the daily necessities of villagers.
Village fairs were larger in size with a wide variety of goods sold from food, clothing,
cosmetics and small consumer durables. The traditional era saw the emergence of the
neighborhood 'Kirana' store to cater to convenience of the Indian consumers.
The era of government support saw indigenous franchise model of store chains run
by Khadi & Village Industries Commission. The KVIC has a countrywide chain of 7000 plus
stores in India. This period also witnessed the emergence of shopping centers with car
parking facility. Over the last three years, this sector has witnessed an exorbitant growth due
to the establishment of numerous international quality formats to suit the Indian purchase
behavior, the improvement in retail processes, the development of retail specific properties
and the emergence of both, domestic and international organizations.
Evolved Retail Sector
The retail sector was earlier dominated by the un-organized sector. It was more of a
seller’s market, with a limited number of brands, and little choice available to customers.
Lack of trained manpower, tax laws and government regulations all discouraged the
growthof organized retailing in India during that period. One of the main factors behind the
un-organized sector was lack of consumer awareness and restrictions over entry of foreign
players into the sector also contributed to the delay in the growth of organized retailing.
Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails
India Limited (PRIL). Following Pantaloon's successful venture a host of Indian business
giants such as Reliance, Bharti, Birla and others are now entering into retail sector.
A number of factors are driving India's retail market. These include: increase in the
young working population, hefty pay-packets, nuclear families in urban areas, increasing
working-women population, increase in disposable income and customer aspiration, increase
in expenditure for luxury items, and low share of organized retailing. India's retail boom is
manifested in sprawling shopping centers, multiplex- malls and huge complexes that offer
shopping, entertainment and food all under one roof.
Mumbai Institute of Management & Research (MIMR) Page | 10
To Study: The Influence of Retailers on Customer Buying Decision
Current Retail Sector
Organized retailers are the contemporary formats by which shoppers have the edge of
a world class shopping experience. Fine examples of these formats are Pantaloon, Shoppers
Stop and Trent. Organized retail may broadly be classified into the following formats-
Malls: The largest form of organized retiling today. Malls are located mainly in metro cities,
in proximity to urban outskirts, this format ranges from approximately 60,000 sq ft to 7, 00,
000 sq ft and above. They lend an ideal shopping experience with an amalgamation of
product, service and entertainment, all under a common roof.
Hypermarkets: They are typically large, starting from 40,000sq. ft plus are usually located
outside the city limits. This format comprises of a multiple division layout, and usually has
an" industrial- look" interior. Hypermarkets generally provide daily necessities and grocery
like items. Pricing is competitive and they also offer volume discounts.
MBO's Multi Brand outlets: Category Killers, offer several brands across a single product
category. These usually do well in busy market places and Metros.
Super Markets: Large self service outlets, catering to varied shopper needs are termed as
Super markets. These are located in or near residential high streets. These stores contribute
to 30% of all food & grocery organized retail sales. Super Markets can further be classified
in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging
from a size of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and
personal sales.
Discount Stores: As the name suggests, discount stores or factory outlets, offer discounts on
the MRP through selling in bulk reaching economies of scale or excess stock left over at the
season. The product category can range from a variety of perishable/ non perishable goods.
Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near
residential areas. They stock a limited range of high-turnover convenience products and are
usually open for extended periods during the day, seven days a week. Prices are slightly
higher due to the convenience premium.
Mumbai Institute of Management & Research (MIMR) Page | 11
To Study: The Influence of Retailers on Customer Buying Decision
Departmental Store: Large stores ranging from 20000-50000 sq. ft, catering to a variety of
consumer needs. They are further classified into localized departments such as clothing, toys,
home, groceries, etc.
Exclusive Store: Ranging from a size of 500 sq ft to 5,000 sq ft. & above, this format is
owned/ managed by the Company or through its franchise offering single & multiple bands.
Specialty Store: These formats focus on a specific product category, Medium sized layout
in strategic location. Specialty stores provide a large variety base for the consumers to
choose.
Future Retail Sector
Retail is clearly the sector that is poised to show the highest growth in the next five
years. The sector is set for a revolution, as both the present players and new entrants are
gearing up to explore the market. There has been a 1% rise in January 2009 retail as
compared to 2008. Compared to the past retail market, the future Market will be more
like
• Speed & Imagination
• Abdication
• Design Management
• Seamlessness
• Personalization
• Technology Drives Change
• Thrive In Chaos
• Relationships
In the future modern retail development in India is expected to be focused on the
following cities. In the west Retail players will concentrate on cities like Mumbai, Pune and
Ahmedabad. In the North Delhi and the National Capital Region will see increased
investments in terms of retailing. In the south Chennai, Bangalore, Hyderabad and in the east
Kolkata will be targeted for retailing.
Mumbai Institute of Management & Research (MIMR) Page | 12
To Study: The Influence of Retailers on Customer Buying Decision
Companies like Shoppers Stop, Trent, Reliance, Lifestyle, Tanishq, Crossroads,
Akbarallys' and Tanishq already have planned to invest over Rs 5,000cr. Trent is on the edge
to take both its brands 'Star India Bazaar' and 'Westside' to new cities, meanwhile Shoppers'
Stop has recently geared up for expansion of present ones and to add 11 new stores including
two hypermarkets. Also, Pantaloon has planned to add eight 'Big Bazaar' malls within the
next 6 to 8 months.
Mumbai Institute of Management & Research (MIMR) Page | 13
To Study: The Influence of Retailers on Customer Buying Decision
Figure | 2.2 Indian Retail Market
Indian market has high complexities in terms of a wide geographic spread and
distinct consumer preferences varying by each region necessitating a need for localization
even within the geographic zones. While India presents a large market opportunity given the
number and increasing purchasing power of consumers, there are significant challenges as
well given that over 90% of trade is conducted through independent local stores. Challenges
include: Geographically dispersed population, small ticket sizes, complex distribution
network, and little use of IT systems, limitations of mass media and existence of counterfeit
goods. The emphasis is on retail as a brand rather than retailers selling brands. The focus
should be on branding the retail business itself. In their preparation to face fierce competitive
pressure, Indian retailers must come to recognize the value of building their own stores as
brands to reinforce their marketing positioning, to communicate quality as well as value for
money. Sustainable competitive advantage will be dependent on translating core values
combining products, image and reputation into a coherent retail brand strategy.
Mumbai Institute of Management & Research (MIMR) Page | 14
To Study: The Influence of Retailers on Customer Buying Decision
The future of the India Retail Industry looks promising with the growing of the
market, with the government policies becoming more favorable and the emerging
technologies facilitating operations.
Mumbai Institute of Management & Research (MIMR) Page | 15
To Study: The Influence of Retailers on Customer Buying Decision
2.2. Retailers Role in Retailing
Retailers are part of an integrated system called the supply chain. A retailer purchases
goods or products in large quantities from manufacturers directly or through a wholesaler,
and then sells smaller quantities to the consumer for a profit. Retailing can be done in either
fixed locations or online. Retailing includes subordinated services, such as delivery. The
term "retailer" is also applied where a service provider services the needs of a large number
of individuals, such as a public utility, like electric power.
A retailer is basically "A business or person that sells goods to the consumer,
as opposed to a wholesaler or supplier, who normally sell their goods to
another business."
A retailer is a middleman who procures goods from the wholesalers and sells it to the
final consumers. They form a vital link in the channel of distribution of products neither
because without him, neither the products would sell to distant places nor would it be
possible for consumers to buy goods of their choice in shops located nearby. They have a
much stronger personal relationship with the consumers and deal directly with the people of
varied tastes and temperaments & form the last link in the chain of distribution and give the
final selling price the product. The retailers provide important services and solve problems of
the manufacturers and wholesalers on one hand and the consumers on the other hand.
Shops may be on residential streets, streets with few or no houses or in a shopping
mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial
or full roof to protect customers from precipitation. Online retailing, a type of electronic
commerce used for business-to-consumer (B2C) transactions and mail order, are forms of
non-shop retailing. Shopping generally refers to the act of buying products. Recreational
shopping often involves window shopping (just looking, not buying) and browsing and does
not always result in a purchase.
The retailer is in direct contact with the customers and so he can play a significant
part in helping the manufacturer reduce the gap between actual and perceived quality. The
Mumbai Institute of Management & Research (MIMR) Page | 16
Figure 5.1
Evolution of the Retail
Sector
To Study: The Influence of Retailers on Customer Buying Decision
retailer should also ensure quality at the various stages of the supply chain so that the quality
of the product is not affected.
2.3. SWOT Analysis of Retail Stores
SWOT analysis (alternately SWOT Matrix) is a strategic planning method used to
evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a
project or in a business venture. It involves specifying the objective of the business venture
or project and identifying the internal and external factors that are favorable and unfavorable
to achieve that objective.
Strengths: Characteristics of the business, or project team that give it an advantage over
others.
Weaknesses (or Limitations): Characteristics that place the team at a disadvantage
relative to others.
Opportunities: External chances to improve performance (e.g. make greater profits) in
the environment.
Threats: External elements in the environment that could cause trouble for the business or
project.
Strengths
• Demographic favor
• Rising disposable income
• Increase in number of people in earner category
• Urbanization
• Shopping convenience
• Low labor cost of skilled ones
Mumbai Institute of Management & Research (MIMR) Page | 17
Figure 5.1
Evolution of the Retail
Sector
To Study: The Influence of Retailers on Customer Buying Decision
• Changing consumer habits and lifestyles
• Plastic card revolution
• Greater availability of quality retail space.
Mumbai Institute of Management & Research (MIMR) Page | 18
To Study: The Influence of Retailers on Customer Buying Decision
Weakness
• Policy related issues
• Limited consumer insight
• Inadequate human resources
• Taxation hurdle
• Underdeveloped supply chain.
Opportunities
• Potential for investment.
• Sectors with high growth potential.
• Fastest growing formats.
• Rural retail.
• Wholesale trading.
• E-retailing
• Retail franchising.
Threats
• Political issues
• Social issues
• Inflation
• Lack of differentiation among the malls that are coming
• Poor inventory turns and stock availability measures.
Mumbai Institute of Management & Research (MIMR) Page | 19
To Study: The Influence of Retailers on Customer Buying Decision
Introduction to Retail Sector
Key Learning Points
Unorganized Retail Sector
Organised Retail Sector
Evolution of the Retail Sector
• Old Retail Sector
• Evolved Retail Sector.
• Current Retail Sector
• Future Retail Sector
Retailers Role in Retailing
SWOT Analysis of Retail Stores
• Strengths
• Weakness
• Opportunities
• Threats
Mumbai Institute of Management & Research (MIMR) Page | 20
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 21
Chapter 3
Skills Required For
Retailers
To Study: The Influence of Retailers on Customer Buying Decision
Skills Required For Retailers
“A winner is someone who recognizes his God-given talents, works his tail off
to develop them into skills, and uses these skills to accomplish his goals.”
- Larry Bird
A skill is the learned capacity to carry out pre-determined results often with the
minimum outlay of time, energy, or both. In other words the abilities that one possesses.
Skills can often be divided into domain-general and domain-specific skills. A skill may be
defined broadly as a learnt ability that improves with practice in time.
For example: In the domain of work, some general skills would include time
management, teamwork and leadership, self motivation and others, whereas domain
-specific skills would be useful only for a certain job. Skill usually requires certain
environmental stimuli and situations to assess the level of skill being shown and used.
Technical and job-related skills are a must, but
they are not sufficient when it comes to progressing up
the ladder. "Soft skills are very important in business.
It is essential to be technically sound, but one should
also have the ability to convey the idea to the masses
in the simplest possible manner," says Mayurkumar Gadewar, an ERP consultant with
Pricewaterhouse Coopers. With the boom in outsourcing taking root across industries, many
professionals and subject matter experts directly deal with their clients on a regular basis.
Approachability and people skills are what ultimately sustain the contract their employers
have bagged. "Planning is necessary but execution is equally important. And it takes soft
skills to execute any idea because it involves dealing with people directly," says Gadewar.
Soft skills are personal attributes that enhance an individual's interactions, job
performance and career prospects. Unlike hard skills, which are about a person's skill set and
ability to perform a certain type of task or activity, soft skills relate to a person's ability to
interact effectively with coworkers and customers and are broadly applicable both in and
outside the workplace.
Mumbai Institute of Management & Research (MIMR) Page | 22
To Study: The Influence of Retailers on Customer Buying Decision
3.1. Observation Skills
Observation of individuals or groups at work is a method of getting a direct and
realistic impression of what is happening. It can be done by a detached or an involved
observer, or by participant observation.
Observation means studying role holders at work, noting what they do, how they do
it, and how much time it takes. This method is most appropriate for routine administrative or
manual roles but it seldom used because of the time it takes. Better observation takes two
things, the effort to observe what you want to know. The second is to have more knowledge
about what you are observing.
The first part takes patience and practice. The human mind is a
reprogrammable computing device. Your mind forms new neural
pathways and optimizes existing pathways with practice and
repetition. Any task can be subject to this effect from driving to
playing sports. Consider the example of learning a card game. I find
that with a few weeks of playing I get far better and faster at a game.
My mind has formed some neural connections that allow me to
process the needed problem solving skills more quickly. These connections are improved
and optimized through repletion and practice. If you make a point to get out and regularly
practice the skill you desire it will get easier.
The second essential life skill of self-observation may well be the most important. It
seems so obvious and so simple and yet we are extremely unskilled and unpracticed at
paying attention to our own thoughts, feelings, and actions. We tend to operate on
“automatic pilot,” as if we have no control.
The reality is that unless we know what we are doing, we have little chance of
changing it—and often the simple act of becoming aware causes us to do something
differently. When we practice self-observation—noticing what we are thinking, feeling,
doing, and imagining—it allows us to become self-aware. When we are aware of what we
are doing, we realize that we have choices and choices are what make us powerful.
Mumbai Institute of Management & Research (MIMR) Page | 23
To Study: The Influence of Retailers on Customer Buying Decision
Workplace observation is simply noticing what is going on around you. A mental
health environment can be a fast-paced environment at times with so much going on that you
need eyes everywhere and at times and it can be very distractive. Most of the time we are
very selective about what we pay attention to, that is what we do every day. For example,
just think about driving to work this morning and think about the things that you noticed and
the things that you didn’t. Did you notice any people walking? Can you remember what they
were wearing? What type of dog they were walking?
Observation skills mean the ability to see beyond a limited scope. It is the ability to
sense the feelings of others when things are going good and when things are not so good.
While observing we must remember that our mind will see what it wants to; the eyes will
often lie...
Importance of Observation Skills
Observation is an important part of learning how to teach. Much of what beginner
teachers need to be aware of cannot be learned solely in the university class. Therefore
classroom observation presents an opportunity to see real-life teachers in real-life teaching
situations. In their reflections, many of our teacher friends mention their observations and
how these observations influence the way they plan and teach. Teachers are forever
reflecting and making decisions, and when they see someone else in action, in as much as
they are seeing someone else, they are almost simultaneously seeing themselves.
• Remove tension in the group
• Who talks to whom
• Interest level of the group
• Sensing feelings of individuals
• Who is being left out
• Reaction to comments
• When the group avoids the topic
Mumbai Institute of Management & Research (MIMR) Page | 24
To Study: The Influence of Retailers on Customer Buying Decision
Improving Observation Skills
Improving Observation provides opportunities for both experienced and new
observers to reflect on key features of lessons, particularly the effectiveness of the learning.
Powers of observation allow you to gather information on the world around you and, with
practice, learn how to evaluate that information to make determinations. Doing so requires
practice and time spent observing your surroundings. We have to learn to avoid letting your
mind get in the way of making your observations, while you train yourself to use all of your
senses together. The power of observation is the power to observe, assess and understand the
world around you with a clear perspective.
• Look at every activity in a clear manner.
• Judge people and their perceptions.
• Ask questions to people & to your mind.
• Open to new experiences.
• Open to new ideas.
• Practicing good listening skills.
Critical for Developing Observation Skills
Research shows employers hire not only for technical abilities, but also incorporate
emotional intelligence, or soft skills, in their decisions. In fact, many companies, including
Whole Foods, PepsiCo. L’Oreal and Coca-Cola are investing in assessing and developing
emotional intelligence to improve their bottom lines. We must focus and work on improving
skills in an expanded array of areas to be most competitive as a job seeker and as a valued
employee.
• People watching
• Seeing the world as it is
• Curiosity
• Listening skills
• Personal biases
• Seek the inputs of others
Mumbai Institute of Management & Research (MIMR) Page | 25
To Study: The Influence of Retailers on Customer Buying Decision
• New experiences and
possibilities
• Comfortable with ambiguity
• Knowledge and attitudes of
people
• Self-knowledge & impact on
others.
Mumbai Institute of Management & Research (MIMR) Page | 26
To Study: The Influence of Retailers on Customer Buying Decision
3.2. Listing Skills
Listening is the absorption of the meanings of words and
sentences by the brain. Listening leads to the understanding of facts and
ideas. But listening takes attention, or sticking to the task at hand in spite
of distractions. It requires concentration, which is the focusing of your
thoughts upon one particular problem. A person who incorporates
listening with concentration is actively listening.
It talked about the importance of good listening skills and the
difference between hearing and listening. Hearing is a physical ability
while listening is a skill. Listening skills allow one to make sense of and
understand what another person is saying. In other words, listening skills
allow you to understand what someone is "talking about".
Thus the essence of active listening is as brutally simple as it is
effective: paraphrasing the speakers words back to them as a question.
The process is successful if the person receiving the information gives
feedback which shows understanding for meaning. Good listening skills
make workers
more productive.
Figure | 4.1.1 Listening
Effective listening is a way of showing concern for subordinates,
and that fosters cohesive bonds, commitment, and trust. Effective
listening tends to reduce the frequency of interpersonal conflict and
increases the likelihood that when conflicts emerge they will be resolved
Mumbai Institute of Management & Research (MIMR) Page | 27
To Study: The Influence of Retailers on Customer Buying Decision
with a "win-win" solution. In addition, if you listen to the people you
manage; you will learn "what makes them tick." When you know what
makes them tick, you will be more effective at motivating them. You
can encourage them when they need encouraging, and you will know
what kinds of things they value as rewards for a job well done (e.g.,
public praise, autonomy, challenge, etc.).
Mumbai Institute of Management & Research (MIMR) Page | 28
To Study: The Influence of Retailers on Customer Buying Decision
Effective listening enhances the communication quality. It makes
all attentive. It encourages optimistic attitude, healthy relations and more
participation. It leads to better decision- making in an organization.
Effective listening is directly related to our ability to do team work. We
listen at about an efficiency rate of 25 percent maximum, and we
remember only about 50 percent of what is delivered during a ten minute
speech / lecture / communication.
Barriers to Listening
"As a leader you have to be a really good listener. You need
to know your own mind but there is no point in imposing your
views on others without some debate. No one has a monopoly
on good ideas or good advice. Get out there, listen to people,
draw people out, and learn from them."
Effective leaders and influencers master the art of listening, and
they understand that people want to be heard. In our fast-paced world,
active and empathetic listening is a rarity, and it's not as simple as it
sounds. Even if we know how to listen, we often don't for a number of
reasons.
• Distraction
• No attention
• Less retention power
• Nervous
• Interpretation
• Language
• Gender difference
• Distance
• Body language
• Mode of communication
Mumbai Institute of Management & Research (MIMR) Page | 29
To Study: The Influence of Retailers on Customer Buying Decision
• Response
• One sided conversation
• No been prepaid
• Own though & feelings
Mumbai Institute of Management & Research (MIMR) Page | 30
To Study: The Influence of Retailers on Customer Buying Decision
Strategies for Effective Listening
The listener has to sincerely desire to understand the speaker and
think from his angle. A person, who tries to understand others, first is
understood by others well.
Stop: Focus on the other person, their thoughts and feelings.
Consciously focus on quieting your own internal commentary, and step
away from your own concerns to think about those of the speaker. Give
your full attention to the speaker.
Look: Pay attention to non-verbal messages, without letting yourself is
distracted. Notice body language and non-verbal cues to allow for a
richer understanding of the speaker’s point. However, avoid getting
distracted from the verbal message.
Listen: Listen for the essence of the speaker’s thoughts: details, major
ideas and their meanings. Seek an overall understanding of what the
speaker is trying to communicate, rather than reacting to the individual
words or terms that they use to express themselves.
Be empathetic: Imagine how you would feel in their circumstances.
Be empathetic to the feelings of the speaker, while maintaining a calm
centre within you. You need not be drawn into all of their problems or
issues, as long as you acknowledge what they are experiencing.
Ask questions: Use questions to clarify your understanding, as well
as to demonstrate interest in what is being said.
Listening facilitates correct understanding of problems faced by
the members of the organization. Listening helps one obtain adequate
data to solve problems. Listening motivates the speaker or the
complaining employee or the deliberating subordinate. Listening
improves or lifts up the image of the listener, especially the manager.
Mumbai Institute of Management & Research (MIMR) Page | 31
To Study: The Influence of Retailers on Customer Buying Decision
Listening makes one a leader, an efficient mediator and a deft
trouble-shooter. Now what we have to master is the listening, since there
are a lot of good things supporting good listening. We will discuss here
the strategies, skills and best practices to reach the best stage of
listening. Such strategies also constitute determinants of good listening.
Mumbai Institute of Management & Research (MIMR) Page | 32
To Study: The Influence of Retailers on Customer Buying Decision
3.3. Demonstration Skills
The Demonstration is the main element in a sales process.
Demonstrations can build or destroy the product or the activity for which
the demonstration is been carried on. Demonstrating is not just showing
product knowledge. It covers all accept to allow the customer, observer,
consumer to participant to avoid common errors and turn the
demonstration into a valuable of the sales process or an excellent
experience process.
Demonstration is basically showing a proof, explaining or
making clear by actual use of examples or experiments. It means to
clearly show. In teaching through demonstration, students are set up for
better understanding of the subject matter & more effectively as shown
in a study the “action speaks louder than words” is the technique
followed by the teachers thought demonstration. Demonstration is not
only in classrooms but also outside it helps to improve the skills of the
facilitator to facilitate the strategies to the audience. Demonstration is
basically a method of “Doing” by using teaching skills; it is showing
learns the method of performing an activity practically and then letting
the observer or learner do the act.
Importance of a Demonstration
“I hear and I forget. I see and I remember. I do and I
understand.”
When an activity is performed by the observer, learner or the
customer on their own they are more confident to learn or buy. The act is
learned in a better manner under supervision.
• Visual appeal
Mumbai Institute of Management & Research (MIMR) Page | 33
To Study: The Influence of Retailers on Customer Buying Decision
• Proof
• Senses are used
• Better Comparison
• Improvers Selling process
Mumbai Institute of Management & Research (MIMR) Page | 34
To Study: The Influence of Retailers on Customer Buying Decision
Concern in a
Demonstration
• Ease of use
• Understanding the
technical details
• Safety in explanation
• Speed in explanation
• Comfort a person
Method of Successful Demonstration
1. Understand you audience
• Experience or knowledge
• Demonstrating New Technique or Basic Information
2. Understand the objective of demonstration
• Plan objective
• Expectation
3. Plan the demonstration process & materials required
• Time
• List of materials / tools
4. Trial or Testing of demonstration process
• Simple procedures
• Practice steps and activities
Mumbai Institute of Management & Research (MIMR) Page | 35
To Study: The Influence of Retailers on Customer Buying Decision
“Demonstration Should Be With the Actual Product”
Mumbai Institute of Management & Research (MIMR) Page | 36
To Study: The Influence of Retailers on Customer Buying Decision
3.4. Questioning Skills
Questions are basically a communication process done by two
people or group of people to bring out a response and gain information.
It is nothing but a sentence framed in a manner of getting a response in
from of information and clarification.
Questions are asked in
order to get what we want, to
clear our doubt, to seek
information, to show we are
following others, to understand,
or may be to challenge others
etc. the questions can be asked
by anyone there is no age limit
or professional barriers for
asking the questions. Whatever the need for asking questions may be,
knowing what to ask and how to ask is a significant skill.
The manner in which the questions are asked, styles of
questioning, motive behind each question, etc factors are very important
to be understood. Thus it is very essential for every individual to
understand and learn the questioning skills. Questioning skills are
important to understand the audience situation and respond them,
understand their needs. On the whole it is basically understanding the
audience and asking them the right type of questions at the right time in
a correct manner.
Importance of Good Questioning
“Garbage in, garbage out”
The concept of Garbage in, garbage out… is followed in
communication. If we ask any thing foolish the response what we will
get will also be waste.
Mumbai Institute of Management & Research (MIMR) Page | 37
To Study: The Influence of Retailers on Customer Buying Decision
• Interaction
• Challenge others
• Judging
• Response & Feedback getting indication
“All our knowledge results from questions, which is another
way of saying that questioning is our most important
intellectual tool.”
Mumbai Institute of Management & Research (MIMR) Page | 38
To Study: The Influence of Retailers on Customer Buying Decision
Improving Questioning Skills
Most of the times, conversation starts with a question, hence it is
very important to improve our questioning skills.
• Knowledge
• Translation & understanding why is it their need to ask the
question
• Demonstration & Communication
manner
• Breakdown the questions
• Design & compose
• Evaluate the answer with the
question asked
Types of Questions Asked
Open Ended Questions: Questions having long explanation & answers.
(Describe your name?)
Close Ended Questions: Question can be answered with either a single
word or a short phrase. It can either be 'yes' or 'no'. (What is your name?)
Echo Questions: Directly takes up part of an earlier said sentence. (The
Queen killed the King. / The Queen killed the King?)
Paraphrasing Questions: Paraphrasing questions are asked in
paragraphs form, having a short response. (You were asking that…Is
that right?)
Probing Questions: Is another open-ended question, but it's a follow-
up. (Are you able to tell me more about the form you received?)
Leading Questions: Questions leading for a response. (You understand
what I'm saying, don't you?")
Mumbai Institute of Management & Research (MIMR) Page | 39
To Study: The Influence of Retailers on Customer Buying Decision
Comparative Questions: Questions are often phrased as directed
comparisons between the two activities / things. (Is ‘A’ better than
“B’…?)
Rhetoric Questions: Question asked for a purpose other than to obtain
the information the question asks. (Why are you so stupid?)
Mumbai Institute of Management & Research (MIMR) Page | 40
To Study: The Influence of Retailers on Customer Buying Decision
Skills Required For Retailers
Key Learning Points
Observation Skill: Observation means studying role holders at
work, noting what they do, how they do it, and how much time it takes.
Listening Skills: Listening leads to the understanding of facts and
ideas. But listening takes attention, or sticking to the task at hand in spite
of distractions.
Demonstration Skills: When an activity is performed by the
observer, learner or the customer on their own they are more confident
to learn or buy. The act is learned in a better manner under supervision.
Questioning Skills: “Garbage in, garbage out”
Mumbai Institute of Management & Research (MIMR) Page | 41
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 42
Chapter 4
Research Methodology
To Study: The Influence of Retailers on Customer Buying Decision
Research Methodology
“I believe in innovation and that the way you get innovation
is you fund research and you learn the basic facts.”
- Bill Gate
The Indian retail industry is thriving today. There is stiff
competition among Indian and foreign retailers to attract customers and
retain them. In this tug-of-war, quality retailing has emerged as the
solution. The retailer who provides quality products and services along
with a quality shopping experience succeeds in the long run. Customer
mentality is different in different countries. Particularly in India, there
are huge cultural differences among the people of different states, which
in turn affect their buying behavior. In this scenario, it becomes
necessary for the retailer to survey the customersied culture and
expectations so that he can train his staff to appropriately meet these
expectations.
4.1. Literature Review
Retailers act as buying agents for consumers. They perform
various business activities that increase the value of the goods and
services they sell to the end consumer. If there were no retailers in the
distribution system, consumers would have to personally visit the
manufacturers to procure the goods and services required by them. As a
buying agent, a retailer performs various activities to satisfy the end
consumer.
Customer relationship activities have the most impact on
customer retention. Every customer service encounter has the potential
to gain repeat business or have the opposite effect. The expectation of
Mumbai Institute of Management & Research (MIMR) Page | 43
To Study: The Influence of Retailers on Customer Buying Decision
personalized, relevant offers and service is becoming a primary driver of
customer satisfaction and retention in financial services. To understand
the purchasing patterns of customers, it is vital to understand the
customer nature and examine the external factors that influence their
buying behavior. The increasing value perception among customer is
putting more pressure on the retailer to offer merchandise of superior
quality that is valuable to the consumer’s eye. Retailers explore
investment opportunities after analyzing the customer’s needs,
aspirations, shopping preferences and buying behavior.
Mumbai Institute of Management & Research (MIMR) Page | 44
To Study: The Influence of Retailers on Customer Buying Decision
Retailing includes the purchasing and selling of products and
services to the consumer, who buys them for individual and household
consumption. The consumption of goods and services depends on the
individual’s preferences and choices. Thus, consumer behavior plays an
important role in the determining the success and growth of retail stores.
A retail market is a place where all the retailers compete with
each other for recognition acceptance through various merchandise
promotional activities. Thus, to understand the retail market, one has to
understand the structure of the buying population and their behavior. A
retailer should understand the structure of the population and their
buying behavior, so that he can cater to the needs of the buyer in a better
way. Buying behavior deals with the process a consumer undergoes
while deciding whether to purchase a product/ service or not. Based on
the customer’s nature and his intentions behind purchasing the
merchandise, the buying population can be divided in to two categories –
the consumer market and the organizational market.
India is currently in the second phase of the retail evolution, with
domestic customers becoming more demanding with their rising
standard of living and changing lifestyles. Change in customers' focus
from just buying to broad shopping (buying, entertainment and
experience) has led to a pick-up in momentum in organised formats of
retailing. Satisfying customers is one of the main objectives of every
business. Businesses recognize that keeping current customers is more
profitable than having to win new ones to replace those lost.
Management and marketing theorists underscore the importance of
customer satisfaction for a business’s success.
One of the biggest challenges to the retail industry is finding out
when something has gone wrong. When customers complain you get a
Mumbai Institute of Management & Research (MIMR) Page | 45
To Study: The Influence of Retailers on Customer Buying Decision
chance to put things right and make sure it never happens again. But
research shows that you probably only hear from about 5% of the
customers who experience problems. Very often, customers who
experience problem in retail environment either don’t know where to
complain, or they simply don't want to create a fuss.
Mumbai Institute of Management & Research (MIMR) Page | 46
To Study: The Influence of Retailers on Customer Buying Decision
4.2. Sampling for the Study
1. Sampling Technique
Convenience - Probability sampling (A Probability
sampling technique is that in which each element in the
population have an equal chance of getting selected).
2. Sample Unit
Retail Stores & Customer in general of all age group.
3. Sample Size
100: Retail Stores
150: Customer
4. Sampling Method
Sample design is a definite plan of obtaining some items from
the whole population. In this survey we have used convenience sampling
as our sampling method.
5. Area of Survey
The survey was conducted in the areas of Kurla &
Chunabhatti, (Sion) Mumbai.
Mumbai Institute of Management & Research (MIMR) Page | 47
To Study: The Influence of Retailers on Customer Buying Decision
4.3. Collection of data & Research Tools
1. Research Design
 Descriptive Research
We have used descriptive research design for our study. The objective of
descriptive research is to describe the existing problem or a situation to
provide insights and understanding. The analysis of primary data is
qualitative and the research is most reliable on primary data.
2. Limitation of the Study
- Respondents may give biased answers for the required data.
- Some respondents had also not given their personal details so it is
not possible to get other data from those if needed.
- Samples are suspected by the researcher, so it is as per convenience
and suspecting skill of us.
3. Sources of data
 Primary sources: Information by Customers & Retailers of
retail stores.
 Secondary sources: Internet, journals, magazines, articles
and previous project.
4. Data Collection
The survey was conducted through structured questionnaire
method of data collection.
5. Data Interpretation
Data Interpreted through Graphics & Pie Diagrams.
Mumbai Institute of Management & Research (MIMR) Page | 48
To Study: The Influence of Retailers on Customer Buying Decision
6. Method
Personal Data collection through Direct Questionnaire.
Mumbai Institute of Management & Research (MIMR) Page | 49
To Study: The Influence of Retailers on Customer Buying Decision
Research Methodology
Key Learning Points
Literature Review:
Retailers act as buying agents for consumers. Customer
relationship activities have the most impact on customer retention.
Sampling for the Study:
• Technique
• Unit
• Size
• Method
• Area of Survey
Collection of data & Research Tools
• Research Design
• Limitation of the Study
• Sources of data
• Data Collection
• Data Interpretation
• Method
Mumbai Institute of Management & Research (MIMR) Page | 50
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 51
Chapter 5
Data Analysis &
Interpretation
To Study: The Influence of Retailers on Customer Buying Decision
Research Study
“If we knew what we were doing it wouldn't be research.”
- Albert Einstein
Research is the investigation of a particular topic using a variety
of reliable, scholarly resources. The three major goals of research are
establishing facts, analyzing information, and reaching new conclusions.
The three main acts of doing research are searching for, reviewing, and
evaluating information.
A research study is a scientific way to improve or develop new
methods of health care. Studies are designed to answer specific
questions on how to prevent, diagnose, or treat diseases and disorders.
Many types of research studies exist. For example, clinical trials test
new medicines or devices. Other studies use interviews or surveys to
understand health or behavior. Research studies are important because
they contribute to knowledge and progress on diseases and disorders.
Research is the fastest and safest way to find treatments that work.
5.1. Data Analysis & Interpretation
After the data have been collected, the researcher turns to the
task of analyzing them. The analysis of data requires a number of closely
related operations such as establishment of categories, the application of
these categories to raw data through coding, tabulation and then drawing
statistical inferences. The unwieldy data should necessarily be
condensed into as few manageable groups and tables for further analysis.
Thus, researcher should classify the raw data into some purposeful and
Mumbai Institute of Management & Research (MIMR) Page | 52
To Study: The Influence of Retailers on Customer Buying Decision
usable categories. Coding operation is usually done at this stage through
which the categories of data are transformed into symbols that may be
tabulated and counted. Editing is the procedure that improves the quality
of the data for coding. With coding the stage is ready for tabulation.
Tabulation is a part of the technical procedure wherein the classified
data are put in the form of tables.
Mumbai Institute of Management & Research (MIMR) Page | 53
To Study: The Influence of Retailers on Customer Buying Decision
Male
Female
54.9%
45.1%
Distribution of respondents
1. Gender wise Distribution:
Analysis: As the pie - diagram indicates around 54.9% of all
respondents considered for samplings are females
and the rest 45.1% of the sample are male. This
indicates that the ratio of male and female is
almost 1:1(approximately)
Mumbai Institute of Management & Research (MIMR) Page | 54
CATEGORY TOTAL PERCENTAGE
MALE 59 45.1
FEMALE 91 54.9
To Study: The Influence of Retailers on Customer Buying Decision
2. Age wise Distribution:
Mumbai Institute of Management & Research (MIMR) Page | 55
CATEGORY TOTAL PERCENTAGE
10 – 16 9 11.5
16 – 30 33 20.5
30 - 45 69 46.5
Above 45 39 21.5
0
20
40
60
80
100
120
140
10 – 16 16 - 30 30 - 45 Above 45
Percentage
Total
To Study: The Influence of Retailers on Customer Buying Decision
Analysis: As the graph represents about 46.5% of
respondents fall into the age category of 30-45,
21.5% fall into the age group of45 & above,
20.5% are from the age group of 16 – 30 &
11.5% are in the age group of 10 - 16.
Mumbai Institute of Management & Research (MIMR) Page | 56
To Study: The Influence of Retailers on Customer Buying Decision
3. Occupation wise Distribution:
Analysis: As the graph indicates majority of our
respondents fall into category of Housewife where
as the student’s category response is second
highest with 35.2% and that of service is 20% and
2% response is from others.
Mumbai Institute of Management & Research (MIMR) Page | 57
CATEGORY TOTAL PERCENTAGE
Student 49 35.2
Housewife 69 42.8
Service 28 20
Others 4 2
0
20
40
60
80
100
120
Students Housewife Service Other
Percentage
Total
To Study: The Influence of Retailers on Customer Buying Decision
Question wise Analysis of the Data
Q1. How frequently do you visit the retail stores?
Analysis: As the graph represents 43% of the respondents
visited the retail store monthly, 25% of the
respondents visited the retail store weekly, 20% of
the respondents visited the retail store frequently,
and 12% of the respondents visited the retail
store.
Mumbai Institute of Management & Research (MIMR) Page | 58
CATEGORY TOTAL PERCENTAGE
Frequently 25 20
Fortnightly 15 12
Weekly 45 25
Monthly 65 43
0
20
40
60
80
100
120
Frequently Fortnightly Weekly Monthly
Percentage
Total
To Study: The Influence of Retailers on Customer Buying Decision
Q2. Choose from the following for which you visit the retail
stores?
Analysis: As the graph represents 20% of the respondents
visited the retail stores for shopping, 42.5% of the
respondents visited the retail store for
comparison of price, 25.5% of the respondent
visited for entertainment and 29% of the
respondent visited for time pass.
Mumbai Institute of Management & Research (MIMR) Page | 59
CATEGORY TOTAL PERCENTAGE
Shopping 60 20
Price 45 42.5
Entertainment 25 25.5
Time pass 20 29
0
10
20
30
40
50
60
70
80
90
100
Shopping Price Entertainment Time
Percentage
Total
To Study: The Influence of Retailers on Customer Buying Decision
Q3. What are the factors which influence you to visit the
retail stores?
Analysis: As the graph represents 33.5% of the respondents
visit the retail store for one stop shopping, 20.2%
of the respondents visit for product variety, 16.2%
of the respondents visit for ambience, 15.4% visit
for new product availability, 10.2% visit for price
Mumbai Institute of Management & Research (MIMR) Page | 60
CATEGORY TOTAL PERCENTAGE
Ambience 21 16.2
One stop 52 33.5
New product 19 15.4
Extra service 8 4.5
Product variety 35 20.2
Price 15 10.2
0
10
20
30
40
50
60
70
80
90
Ambience One stop New
product
Extra service Product
variety
Price
Percentage
Total
To Study: The Influence of Retailers on Customer Buying Decision
factor & 4.5% of the respondents visited for extra
service.
Mumbai Institute of Management & Research (MIMR) Page | 61
To Study: The Influence of Retailers on Customer Buying Decision
Q4. Show your preference level from purchasing the
following product category from the retail stores.
Mumbai Institute of Management & Research (MIMR) Page | 62
CATEGORY HIGHLY
PREFERED
PREFERED NOT
PREFERED
Grocery 32 47 21
Electrics 6 26 68
Packaged foods 26 30 44
Snacks & biscuits 62 32 6
Cosmetics 15 44 41
Clothing 24 49 27
Health care 10 40 50
Handlooms 3 20 77
Vegetables/Fruits 15 35 50
Jewellery 3 20 77
Stationary 10 45 45
0
20
40
60
80
100
120 Not Prefered
Prefered
Higly Prefered
To Study: The Influence of Retailers on Customer Buying Decision
Analysis: As per the graph indicates snacks & biscuits (62%)
and packet food products (26%) are highly
preferred by the respondents, whereas grocery
(47%), cosmetics (44%), clothing (49%) fall in
preferred category and electronics items (68%),
health care (50%), vegetables/fruits (50%),
stationary items (45%) fall in not preferred
category.
Q5. Does advertisement influence you to visit the retail
store?
Analysis: As the graph indicates 55.5% of respondents are
influenced by advertisement “sometime”, 32%
Mumbai Institute of Management & Research (MIMR) Page | 63
CATEGORY TOTAL PERCENTAGE
Every time 20 12.5
Sometime 85 55.5
Never 45 32
0
20
40
60
80
100
120
140
160
Every time Sometime Never
Percentage
Total
To Study: The Influence of Retailers on Customer Buying Decision
respondents are “never” influenced by
advertisement, 12.5% respondents are “every
time” influenced to visit the retail stores.
Mumbai Institute of Management & Research (MIMR) Page | 64
To Study: The Influence of Retailers on Customer Buying Decision
Q6. Do you purchase the product which you have not
planned before visiting the retail stores?
Mumbai Institute of Management & Research (MIMR) Page | 65
CATEGORY TOTAL PERCENTAGE
Every time 20 25
Sometime 92 48.5
Never 28 26.5
0
20
40
60
80
100
120
140
160
Every time Sometime Never
Percentage
Total
To Study: The Influence of Retailers on Customer Buying Decision
Analysis: As per the graph indicates 48.5% of the
respondent’s sometime purchase the products,
25% of the respondents purchase the product
every time, 26.5% of the respondents never
purchases the products.
Mumbai Institute of Management & Research (MIMR) Page | 66
To Study: The Influence of Retailers on Customer Buying Decision
Q7. Choose from product category which you find cheaper
in the retail stores.
Mumbai Institute of Management & Research (MIMR) Page | 67
CATEGORY TOTAL PERCENTAGE
Grocery 28 34.6
Electrics 6 1.5
Packaged foods 12 4
Snacks & biscuits 45 44.3
Cosmetics 15 4.5
Clothing 19 5.5
Health care 1 0.5
Handlooms 3 1
Vegetables/Fruits 10 2.3
Jewellery 3 1
Stationary 8 1.7
To Study: The Influence of Retailers on Customer Buying Decision
Analysis: As the graph represents 44.3% of the respondents
choose snacks and biscuits finds cheaper than
other products.
Mumbai Institute of Management & Research (MIMR) Page | 68
0
10
20
30
40
50
60
70
80
90
100
Percentage
Total
To Study: The Influence of Retailers on Customer Buying Decision
Q8. Do you buy products which are sold at retail store under
their own brand?
Analysis: As the graph represents about 22% of respondents
never preferred the products which are private
labeled, 65.5% of the respondents sometime
preferred and 12.5% respondents every time
preferred the private label products.
Mumbai Institute of Management & Research (MIMR) Page | 69
CATEGORY TOTAL PERCENTAGE
Every time 26 12.5
Sometime 89 65.5
Never 35 22
0
20
40
60
80
100
120
140
160
180
Every time Sometime Never
Percentage
Total
To Study: The Influence of Retailers on Customer Buying Decision
Q9. Product categories you purchase under the name of
retail stores.
Mumbai Institute of Management & Research (MIMR) Page | 70
CATEGORY TOTAL PERCENTAGE
Grocery 22 20.6
Electrics 6 1.5
Packaged foods 35 30
Snacks & biscuits 30 33.1
Cosmetics 9 2.8
Clothing 19 5.5
Health care 1 0.5
Handlooms 3 1
Vegetables/Fruits 11 2.3
Jewellery 3 1
Stationary 7 1.7
To Study: The Influence of Retailers on Customer Buying Decision
Analysis: As the graph indicates majority of respondents preferred
grocery i.e. 20.6%, on the other hand healthcare (0.5%),
handlooms & jwellery (1%) are least preferred. While
packaged foods (30%), snacks and biscuits (33.1%),
clothing (5.5%) are averagely preferred by the respondents.
Mumbai Institute of Management & Research (MIMR) Page | 71
0
10
20
30
40
50
60
70
Percentage
Total
To Study: The Influence of Retailers on Customer Buying Decision
Q10. Choose satisfaction level for the retail stores own
labeled products.
Analysis: As the graph indicates from about 150 respondents
among which 43.5% of the respondents are
satisfied with the private labeled products, 23.5%
respondents are neutral and 28% of the
respondents are highly satisfied.
Mumbai Institute of Management & Research (MIMR) Page | 72
CATEGORY TOTAL PERCENTAGE
Highly Satisfied 30 28
Satisfied 44 43.5
Neutral 20 23.5
Dissatisfied 6 5
Highly Dissatisfied 0 0
0
10
20
30
40
50
60
70
80
90
100
Highly Satisfied Satisfied Neutral Dissatisfied Highly
Dissatisfied
Percentage
Total
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 73
Chapter 6
Discussion &
Implication
To Study: The Influence of Retailers on Customer Buying Decision
6.1. Facts & Findings
Customer satisfaction research measures just those factors that
are connected to the satisfaction, which is wanted to measure with the
research. Facts influences mainly by form of research questions,
alternatives that are chosen to the questions (e.g. scales) and the question
positioning in the survey. “Finding refers to the stability of the
measure.” This basically means that, when the customer satisfaction
research is repeated, the results are practically similar to the previously
implemented research. Majority of customers are influenced by one stop
shopping facility, to visit organized retail stores. On the other hand staff
courtesy and extra services do not influence much to customers.
• Most of the Customers preferred to buy snakes and biscuits,
packaged foods and grocery items from organized retail stores.
On the other hand jwellery, sports/toys, vegetables/fruits, and
handloom items are least preferred by the customers.
• There is no strong influence of Advertisements by organized
retail stores on customers.
• Majority of customers do impulse buying, when they visit retail
stores but not every time.
• Majority of respondents do not prefer to buy private labeled
products, as the data indicates 61.5% of the respondents said
“Never” for the preference towards private labeled products.
• Majority of customers (Who buys private labeled products) buy
Grocery items under private labeled brand.
• Majority of users of private labeled products are satisfied.
Mumbai Institute of Management & Research (MIMR) Page | 74
To Study: The Influence of Retailers on Customer Buying Decision
• Customers find Snakes and biscuits as the cheapest products then
other products in organized retail stores.
Mumbai Institute of Management & Research (MIMR) Page | 75
To Study: The Influence of Retailers on Customer Buying Decision
• There is no influence of Age, Gender and Income of the
respondents on his/her preference for purchasing private labeled
products.
• There is an influence of Occupation of the respondents on his/her
preference for purchasing private labeled products.
• Through Factor Analysis among 12 variables 11 variables can be
clubbed into 4 variables.
• Most of the stores are targeting almost all the segments of the
society with their USP being “Price benefit”
• All the branded stores are in Prime Location.
• Large variety of products is available ranging from clothes, food
items, electronic goods etc.
• Staff is provided constant training for various peculiarities of
customer behavior.
• Some of them offer discount sales and also send greetings to its
loyal customers.
• Not much difference in the Layout of the floor designs in the
various branches. They try to maintain a similarity to maintain
comfort levels of customers.
• These stores maintain Word of Mouth.
Mumbai Institute of Management & Research (MIMR) Page | 76
To Study: The Influence of Retailers on Customer Buying Decision
• Customers are satisfied with the provided services.
• Local retailers stores focuses high on the margin earned then that
of the customer satisfaction & customer benefits.
Mumbai Institute of Management & Research (MIMR) Page | 77
To Study: The Influence of Retailers on Customer Buying Decision
6.2. Framework for Customer
Satisfaction
Mumbai Institute of Management & Research (MIMR) Page | 78
To Study: The Influence of Retailers on Customer Buying Decision
Discussion & Implication
Key Learning Points
Facts & Findings
• Customers preferred unorganized market, no strong
influence, Word of Mouth; Local retailer’s stores
focuses high on the margin, Customers are more loyal
to the retailer than the brand.
Framework for Customer Satisfaction
• Elements Dimensions Customer
Satisfaction
Mumbai Institute of Management & Research (MIMR) Page | 79
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 80
Chapter 7
Limitation &
Suggestions
To Study: The Influence of Retailers on Customer Buying Decision
7.1. Limitation
“Once we accept our limits, we go beyond them.”
- Albert Einstein
The limitations of the study are those characteristics of design or
methodology that impacted or influenced the application or
interpretation of the results of your study. They are the constraints on
generalize and utility of findings that are the result of the ways in which
you chose to design the study and/or the method used to establish
internal and external validity.
There were certain limitations of this study that are enlisted
below;
• Resources of the researcher, as the retailers are spread all over
the country; a large amount of financial resources is required.
• Geographical expansion of target population, as we know that the
retailers are located throughout the area.
• Time of submission, due to academic schedule the researcher had
the limited time frame to complete this research.
• The findings of the current study were applicable only to the
retailers (Super markets)
• The target population was the customers of super markets so the
findings could not be generalized to the customers of SMEs
• The retailers must understand the skills & qualities required to
understand & satisfy the need & requirement of the customers.
Mumbai Institute of Management & Research (MIMR) Page | 81
To Study: The Influence of Retailers on Customer Buying Decision
In this field, for the further research with a little modification this
questionnaire can be applied to customers of SMEs. A comparison of the
customer satisfaction of both Super markets and SMEs can be done.
Customer satisfaction can related to the profitability through customer
loyalty and customer retention.
Mumbai Institute of Management & Research (MIMR) Page | 82
To Study: The Influence of Retailers on Customer Buying Decision
7.2. Suggestions / Recommendation
“Recommendation is an advice proposal for an appropriate
course of action”
• Convert the customers into publicity agents. Develop an incentive
for them to tell associates and friends about the value of your
products or services. An endorsement from them is more effective
than any amount of advertising - and it is much cheaper.
• Surprise the customers with unexpected value. If you sell products,
include an "unadvertised bonus" with every order. If you sell
services, get into the habit of doing something extra for every
customer or client without charging for it.
• Reward them each time they refer someone who becomes a
customer. Your reward can be as simple as a credit toward their next
order from you.
• The retailer must improve their understanding of the role and
capabilities of advertising to improve customer relation and enhance
loyalty. This understanding should in turn results in a more effective
and more efficient advertising campaign & customer satisfying
services.
• Visual Merchandising: It is often seen that the people come to the
store to browse rather than buy.
• Schemes: In store Promotions: The people visiting the store should
be encouraged to visit the store again and again. So it is necessary to
Mumbai Institute of Management & Research (MIMR) Page | 83
To Study: The Influence of Retailers on Customer Buying Decision
delight the shoppers with the shopping experience. It has been
observed in
Mumbai Institute of Management & Research (MIMR) Page | 84
To Study: The Influence of Retailers on Customer Buying Decision
Limitation & Suggestion
Key Learning Points
Limitation
• Resources, Geographical , Time Of Submission, The
Skills & Qualities Required
Suggestions / Recommendation
• Word of Mouth, unexpected value, Reward ,
Understanding their role and capabilities, Visual
Merchandising, Promotions
Mumbai Institute of Management & Research (MIMR) Page | 85
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 86
Conclusion
To Study: The Influence of Retailers on Customer Buying Decision
Conclusion
"The secret of successful retailing is to give your customers
what they want. And really, if you think about it from the
point of view of the 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
The retail sector has played a phenomenal role throughout the
world in increasing productivity of consumer goods and services.
Customers would like to have personal contact with a sales person & the
nearby retail shop.
On the basis of data gathered and analysis done we can
conclude that;
• Customers prefer to purchase day to day products from
organized retail stores.
• The basic purchase has more influence of the retailer
than that of the advertisements on customers.
• Majority of the respondents are doing impulse buying.
• People prefer to purchase private labeled products “One
stops shopping” is the highly influencing factor to the
customers of organized retailing stores, for doing
shopping from those stores.
Mumbai Institute of Management & Research (MIMR) Page | 87
To Study: The Influence of Retailers on Customer Buying Decision
Thus as per the research our Alternative Hypotheses (Ha)
is accepted i.e. the retailer have significant impact on the
buying decision of the customers & Null Hypotheses (Ho)
is rejected.
Mumbai Institute of Management & Research (MIMR) Page | 88
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 89
Bibliography
&
Annexure
To Study: The Influence of Retailers on Customer Buying Decision
Bibliography
Web Links
• http://en.wikipedia.org/wiki/Retailing_in_India
• http://www.fibre2fashion.com/industry-article
• http://www.e4india.com
• http://www.slideshare.net
Book
• Principles of Marketing (14th Edition); Philip Kotler,
Gary Armstrong
Magazines
• 4Ps Business and Marketing:
www.4psbusinessandmarketing.com
Mumbai Institute of Management & Research (MIMR) Page | 90
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 91
To Study: The Influence of Retailers on Customer Buying Decision
Annexure
Name:
__________________________________________________________
________
Age: _____________________________________ Sex:
Female / Male
Occupation:
__________________________________________________________
____
Q1. How frequently do you visit the retail stores?
Q2. Choose from the following for which you visit the retail stores?
Q3. What are the factors which influence you to visit the retail
stores?
Q4. Show your preference level from purchasing the following
product category from the retail stores.
Mumbai Institute of Management & Research (MIMR) Page | 92
a) Frequently b) Weekly
c) Fortnightly d) Monthly
a) Shopping b) Price
c) Entertainment d) Time pass
a) Ambience b) One stop c) New product
d) Extra service e) Product variety f) Price
To Study: The Influence of Retailers on Customer Buying Decision
Q5. Does advertisement influence you to visit the retail store?
Q6. Do you purchase the product which you have not planned
before visiting the retail stores?
Q7. Choose from the product category which you find cheaper in
the retail stores.
Q8. Do you buy the products which are sold at retail store under
their own brand?
Q9. From the following give preference to the product categories
you purchase under the name of retail stores.
Mumbai Institute of Management & Research (MIMR) Page | 93
a) Grocery b) Electrics c) Packaged foods
d) Snacks & biscuits e) Cosmetics f) Clothing
g) Health care h) Handlooms i) Vegetables/Fruits
j) Jewellery k) Stationary
a) Every time b) Sometime c) Never
a) Every time b) Sometime c) Never
a) Grocery b) Electrics c) Packaged foods
d) Snacks & biscuits e) Cosmetics f) Clothing
g) Health care h) Handlooms i) Vegetables/Fruits
j) Jewellery k) Stationary
a) Every time b) Sometime c) Never
To Study: The Influence of Retailers on Customer Buying Decision
Q10. Choose satisfaction level for the retail stores own labeled
products.
Mumbai Institute of Management & Research (MIMR) Page | 94
a) Grocery b) Electrics c) Packaged foods
d) Snacks & biscuits e) Cosmetics f) Clothing
g) Health care h) Handlooms i) Vegetables/Fruits
j) Jewellery k) Stationary
a) Highly Satisfied b) Satisfied c) Neutral
d) Dissatisfied e) Highly Dissatisfied
To Study: The Influence of Retailers on Customer Buying Decision
Mumbai Institute of Management & Research (MIMR) Page | 95

Más contenido relacionado

La actualidad más candente

Retailing in india ppt 0
Retailing in india ppt 0Retailing in india ppt 0
Retailing in india ppt 0Pooja Sakhla
 
Project report-on-operations-retail
Project report-on-operations-retailProject report-on-operations-retail
Project report-on-operations-retailsssatpathi
 
Presentation on more retail
Presentation on more retailPresentation on more retail
Presentation on more retailNeeraj Mandhan
 
Reliance trends internship project
Reliance trends internship projectReliance trends internship project
Reliance trends internship projectSantosh
 
A study on buying behavior of customers in big bazaar
A study on buying behavior of customers in big bazaarA study on buying behavior of customers in big bazaar
A study on buying behavior of customers in big bazaarPrakash Royal
 
project report on topic comparative analysis of Big Bazaar and Vishal mega mart
project report on topic comparative analysis of Big Bazaar and Vishal mega martproject report on topic comparative analysis of Big Bazaar and Vishal mega mart
project report on topic comparative analysis of Big Bazaar and Vishal mega martc143k
 
Retail formats in india
Retail formats in indiaRetail formats in india
Retail formats in indiaSivaditya Gali
 
Organized vs unorganized retailing
Organized vs unorganized retailingOrganized vs unorganized retailing
Organized vs unorganized retailingChakshu Gogna
 
Retail Merchandising Planning
Retail Merchandising PlanningRetail Merchandising Planning
Retail Merchandising PlanningSHAHBAAZ AHMED
 
consumer preference towards organized retail to unorganized retail
consumer preference towards organized retail to unorganized retailconsumer preference towards organized retail to unorganized retail
consumer preference towards organized retail to unorganized retailtwinklekande
 
Project on MORE supermarket
Project on MORE supermarketProject on MORE supermarket
Project on MORE supermarketthoufeeq786
 
102637525 supply-chain-management-and-store-operation-in-pantaloon-retail-ind...
102637525 supply-chain-management-and-store-operation-in-pantaloon-retail-ind...102637525 supply-chain-management-and-store-operation-in-pantaloon-retail-ind...
102637525 supply-chain-management-and-store-operation-in-pantaloon-retail-ind...Neha Suman
 

La actualidad más candente (20)

Retailing in india ppt 0
Retailing in india ppt 0Retailing in india ppt 0
Retailing in india ppt 0
 
Project report-on-operations-retail
Project report-on-operations-retailProject report-on-operations-retail
Project report-on-operations-retail
 
Indian retail ppt
Indian retail pptIndian retail ppt
Indian retail ppt
 
Presentation on more retail
Presentation on more retailPresentation on more retail
Presentation on more retail
 
Types of retailers
Types of retailers Types of retailers
Types of retailers
 
Reliance trends internship project
Reliance trends internship projectReliance trends internship project
Reliance trends internship project
 
A study on buying behavior of customers in big bazaar
A study on buying behavior of customers in big bazaarA study on buying behavior of customers in big bazaar
A study on buying behavior of customers in big bazaar
 
Introduction to Retailing
Introduction to RetailingIntroduction to Retailing
Introduction to Retailing
 
project report on topic comparative analysis of Big Bazaar and Vishal mega mart
project report on topic comparative analysis of Big Bazaar and Vishal mega martproject report on topic comparative analysis of Big Bazaar and Vishal mega mart
project report on topic comparative analysis of Big Bazaar and Vishal mega mart
 
Retail formats in india
Retail formats in indiaRetail formats in india
Retail formats in india
 
Organized vs unorganized retailing
Organized vs unorganized retailingOrganized vs unorganized retailing
Organized vs unorganized retailing
 
pantaloons
pantaloonspantaloons
pantaloons
 
Retail Merchandising Planning
Retail Merchandising PlanningRetail Merchandising Planning
Retail Merchandising Planning
 
consumer preference towards organized retail to unorganized retail
consumer preference towards organized retail to unorganized retailconsumer preference towards organized retail to unorganized retail
consumer preference towards organized retail to unorganized retail
 
Retail Industry
Retail IndustryRetail Industry
Retail Industry
 
Project on MORE supermarket
Project on MORE supermarketProject on MORE supermarket
Project on MORE supermarket
 
Introduction to Retail
Introduction to RetailIntroduction to Retail
Introduction to Retail
 
Big Bazaar
Big BazaarBig Bazaar
Big Bazaar
 
102637525 supply-chain-management-and-store-operation-in-pantaloon-retail-ind...
102637525 supply-chain-management-and-store-operation-in-pantaloon-retail-ind...102637525 supply-chain-management-and-store-operation-in-pantaloon-retail-ind...
102637525 supply-chain-management-and-store-operation-in-pantaloon-retail-ind...
 
Project d mart
Project d martProject d mart
Project d mart
 

Similar a To study the influence of retailer on the customer buying decision

Customer satisfaction a study with special reference to ritu we ars at morada...
Customer satisfaction a study with special reference to ritu we ars at morada...Customer satisfaction a study with special reference to ritu we ars at morada...
Customer satisfaction a study with special reference to ritu we ars at morada...malay srivastava
 
Project at-big-bazaar kapil
Project at-big-bazaar kapilProject at-big-bazaar kapil
Project at-big-bazaar kapilkapil06
 
Notes chapter 1
Notes chapter 1Notes chapter 1
Notes chapter 1kamran
 
321 23 hints-concept-review-questions_chapter-1-retailing-role-relevance-trends
321 23 hints-concept-review-questions_chapter-1-retailing-role-relevance-trends321 23 hints-concept-review-questions_chapter-1-retailing-role-relevance-trends
321 23 hints-concept-review-questions_chapter-1-retailing-role-relevance-trendskamran
 
Big bazaar customer relationship management
Big bazaar customer relationship managementBig bazaar customer relationship management
Big bazaar customer relationship managementAman Bansal
 
Retail Management from the birds eye for the management prospective
Retail Management from the birds eye for the management prospectiveRetail Management from the birds eye for the management prospective
Retail Management from the birds eye for the management prospectiveNagarajNavalgund
 
RETAILING MANAGEMENT - Unit - 1 -OSMANIA UNIVERSITY
RETAILING MANAGEMENT - Unit - 1 -OSMANIA UNIVERSITYRETAILING MANAGEMENT - Unit - 1 -OSMANIA UNIVERSITY
RETAILING MANAGEMENT - Unit - 1 -OSMANIA UNIVERSITYBalasri Kamarapu
 
Scope And Importance Of Retail Industry In India.pptx
Scope And Importance Of Retail Industry In India.pptxScope And Importance Of Retail Industry In India.pptx
Scope And Importance Of Retail Industry In India.pptxTHINK WITH NICHE
 
RM UNIT-2.pdf
RM UNIT-2.pdfRM UNIT-2.pdf
RM UNIT-2.pdfBusiness
 
Big bazaar crm project report
Big bazaar crm project reportBig bazaar crm project report
Big bazaar crm project reportPrachi Batham
 
Impact of retail marketing on consumers by shashank singh of T.M.U
Impact of retail marketing on consumers by shashank singh of T.M.UImpact of retail marketing on consumers by shashank singh of T.M.U
Impact of retail marketing on consumers by shashank singh of T.M.UShashank Singh
 
Live project report ashutosh
Live project report ashutoshLive project report ashutosh
Live project report ashutoshASHUDWI
 
Interim report akriti jain
Interim report akriti jainInterim report akriti jain
Interim report akriti jainmadhvih
 
Dinesh synopsis
Dinesh synopsisDinesh synopsis
Dinesh synopsisdinu25335
 

Similar a To study the influence of retailer on the customer buying decision (20)

Retail mix
Retail mixRetail mix
Retail mix
 
Customer satisfaction a study with special reference to ritu we ars at morada...
Customer satisfaction a study with special reference to ritu we ars at morada...Customer satisfaction a study with special reference to ritu we ars at morada...
Customer satisfaction a study with special reference to ritu we ars at morada...
 
Crm big bazar
Crm  big bazarCrm  big bazar
Crm big bazar
 
Ird interm report vishnu vardhan (dm 06-071)
Ird interm report vishnu vardhan (dm 06-071)Ird interm report vishnu vardhan (dm 06-071)
Ird interm report vishnu vardhan (dm 06-071)
 
Project at-big-bazaar kapil
Project at-big-bazaar kapilProject at-big-bazaar kapil
Project at-big-bazaar kapil
 
Retail tutorial
Retail tutorialRetail tutorial
Retail tutorial
 
Notes chapter 1
Notes chapter 1Notes chapter 1
Notes chapter 1
 
321 23 hints-concept-review-questions_chapter-1-retailing-role-relevance-trends
321 23 hints-concept-review-questions_chapter-1-retailing-role-relevance-trends321 23 hints-concept-review-questions_chapter-1-retailing-role-relevance-trends
321 23 hints-concept-review-questions_chapter-1-retailing-role-relevance-trends
 
Big bazaar customer relationship management
Big bazaar customer relationship managementBig bazaar customer relationship management
Big bazaar customer relationship management
 
Retail Management from the birds eye for the management prospective
Retail Management from the birds eye for the management prospectiveRetail Management from the birds eye for the management prospective
Retail Management from the birds eye for the management prospective
 
RETAILING MANAGEMENT - Unit - 1 -OSMANIA UNIVERSITY
RETAILING MANAGEMENT - Unit - 1 -OSMANIA UNIVERSITYRETAILING MANAGEMENT - Unit - 1 -OSMANIA UNIVERSITY
RETAILING MANAGEMENT - Unit - 1 -OSMANIA UNIVERSITY
 
Scope And Importance Of Retail Industry In India.pptx
Scope And Importance Of Retail Industry In India.pptxScope And Importance Of Retail Industry In India.pptx
Scope And Importance Of Retail Industry In India.pptx
 
RM UNIT-2.pdf
RM UNIT-2.pdfRM UNIT-2.pdf
RM UNIT-2.pdf
 
Big bazaar crm project report
Big bazaar crm project reportBig bazaar crm project report
Big bazaar crm project report
 
retailing
retailingretailing
retailing
 
Impact of retail marketing on consumers by shashank singh of T.M.U
Impact of retail marketing on consumers by shashank singh of T.M.UImpact of retail marketing on consumers by shashank singh of T.M.U
Impact of retail marketing on consumers by shashank singh of T.M.U
 
Live project report ashutosh
Live project report ashutoshLive project report ashutosh
Live project report ashutosh
 
Interim report akriti jain
Interim report akriti jainInterim report akriti jain
Interim report akriti jain
 
Dinesh synopsis
Dinesh synopsisDinesh synopsis
Dinesh synopsis
 
Retail management
Retail managementRetail management
Retail management
 

Más de Dinesh Jogdand

A study of electronic data storage steel factory in mumbai
A study of electronic data storage steel factory in mumbaiA study of electronic data storage steel factory in mumbai
A study of electronic data storage steel factory in mumbaiDinesh Jogdand
 
MBA IT Final year project- CRM in banking sector- dinesh48
MBA IT Final year project- CRM in banking sector- dinesh48MBA IT Final year project- CRM in banking sector- dinesh48
MBA IT Final year project- CRM in banking sector- dinesh48Dinesh Jogdand
 
Book store Black Book - Dinesh48
Book store Black Book - Dinesh48Book store Black Book - Dinesh48
Book store Black Book - Dinesh48Dinesh Jogdand
 
TY CS Black book Construction - Dinesh48
TY CS Black book Construction - Dinesh48TY CS Black book Construction - Dinesh48
TY CS Black book Construction - Dinesh48Dinesh Jogdand
 
Final Msm black book Final
Final  Msm black book Final Final  Msm black book Final
Final Msm black book Final Dinesh Jogdand
 
MBA (IT) SIP Report on RIInfotech
MBA (IT) SIP Report on RIInfotechMBA (IT) SIP Report on RIInfotech
MBA (IT) SIP Report on RIInfotechDinesh Jogdand
 
MBA (IT) SIP Report on RIInfotech Ecommerce
MBA (IT) SIP Report on RIInfotech EcommerceMBA (IT) SIP Report on RIInfotech Ecommerce
MBA (IT) SIP Report on RIInfotech EcommerceDinesh Jogdand
 
Project report On MSM (Mobile Shop Management)
Project report On MSM (Mobile Shop Management)Project report On MSM (Mobile Shop Management)
Project report On MSM (Mobile Shop Management)Dinesh Jogdand
 
Project report on mobile shop management
Project report on mobile shop managementProject report on mobile shop management
Project report on mobile shop managementDinesh Jogdand
 

Más de Dinesh Jogdand (10)

Hul report
Hul reportHul report
Hul report
 
A study of electronic data storage steel factory in mumbai
A study of electronic data storage steel factory in mumbaiA study of electronic data storage steel factory in mumbai
A study of electronic data storage steel factory in mumbai
 
MBA IT Final year project- CRM in banking sector- dinesh48
MBA IT Final year project- CRM in banking sector- dinesh48MBA IT Final year project- CRM in banking sector- dinesh48
MBA IT Final year project- CRM in banking sector- dinesh48
 
Book store Black Book - Dinesh48
Book store Black Book - Dinesh48Book store Black Book - Dinesh48
Book store Black Book - Dinesh48
 
TY CS Black book Construction - Dinesh48
TY CS Black book Construction - Dinesh48TY CS Black book Construction - Dinesh48
TY CS Black book Construction - Dinesh48
 
Final Msm black book Final
Final  Msm black book Final Final  Msm black book Final
Final Msm black book Final
 
MBA (IT) SIP Report on RIInfotech
MBA (IT) SIP Report on RIInfotechMBA (IT) SIP Report on RIInfotech
MBA (IT) SIP Report on RIInfotech
 
MBA (IT) SIP Report on RIInfotech Ecommerce
MBA (IT) SIP Report on RIInfotech EcommerceMBA (IT) SIP Report on RIInfotech Ecommerce
MBA (IT) SIP Report on RIInfotech Ecommerce
 
Project report On MSM (Mobile Shop Management)
Project report On MSM (Mobile Shop Management)Project report On MSM (Mobile Shop Management)
Project report On MSM (Mobile Shop Management)
 
Project report on mobile shop management
Project report on mobile shop managementProject report on mobile shop management
Project report on mobile shop management
 

Último

Cost-effective tactics for navigating CPC surges
Cost-effective tactics for navigating CPC surgesCost-effective tactics for navigating CPC surges
Cost-effective tactics for navigating CPC surgesPushON Ltd
 
Marketing Management Presentation Final.pptx
Marketing Management Presentation Final.pptxMarketing Management Presentation Final.pptx
Marketing Management Presentation Final.pptxabhishekshetti14
 
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...How videos can elevate your Google rankings and improve your EEAT - Benjamin ...
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...Benjamin Szturmaj
 
CALL ON ➥8923113531 🔝Call Girls Hazratganj Lucknow best sexual service Online
CALL ON ➥8923113531 🔝Call Girls Hazratganj Lucknow best sexual service OnlineCALL ON ➥8923113531 🔝Call Girls Hazratganj Lucknow best sexual service Online
CALL ON ➥8923113531 🔝Call Girls Hazratganj Lucknow best sexual service Onlineanilsa9823
 
Factors-Influencing-Branding-Strategies.pptx
Factors-Influencing-Branding-Strategies.pptxFactors-Influencing-Branding-Strategies.pptx
Factors-Influencing-Branding-Strategies.pptxVikasTiwari846641
 
The Rise of Virtual Influencers: A New Era in Social Media Marketing.pptx
The Rise of Virtual Influencers: A New Era in Social Media Marketing.pptxThe Rise of Virtual Influencers: A New Era in Social Media Marketing.pptx
The Rise of Virtual Influencers: A New Era in Social Media Marketing.pptxChelsiaD
 
Uncover Insightful User Journey Secrets Using GA4 Reports
Uncover Insightful User Journey Secrets Using GA4 ReportsUncover Insightful User Journey Secrets Using GA4 Reports
Uncover Insightful User Journey Secrets Using GA4 ReportsVWO
 
Brand experience Dream Center Peoria Presentation.pdf
Brand experience Dream Center Peoria Presentation.pdfBrand experience Dream Center Peoria Presentation.pdf
Brand experience Dream Center Peoria Presentation.pdftbatkhuu1
 
Labour Day Celebrating Workers and Their Contributions.pptx
Labour Day Celebrating Workers and Their Contributions.pptxLabour Day Celebrating Workers and Their Contributions.pptx
Labour Day Celebrating Workers and Their Contributions.pptxelizabethella096
 
Unraveling the Mystery of the Hinterkaifeck Murders.pptx
Unraveling the Mystery of the Hinterkaifeck Murders.pptxUnraveling the Mystery of the Hinterkaifeck Murders.pptx
Unraveling the Mystery of the Hinterkaifeck Murders.pptxelizabethella096
 
Enjoy Night⚡Call Girls Dlf City Phase 4 Gurgaon >༒8448380779 Escort Service
Enjoy Night⚡Call Girls Dlf City Phase 4 Gurgaon >༒8448380779 Escort ServiceEnjoy Night⚡Call Girls Dlf City Phase 4 Gurgaon >༒8448380779 Escort Service
Enjoy Night⚡Call Girls Dlf City Phase 4 Gurgaon >༒8448380779 Escort ServiceDelhi Call girls
 
Local SEO Domination: Put your business at the forefront of local searches!
Local SEO Domination:  Put your business at the forefront of local searches!Local SEO Domination:  Put your business at the forefront of local searches!
Local SEO Domination: Put your business at the forefront of local searches!dstvtechnician
 
GreenSEO April 2024: Join the Green Web Revolution
GreenSEO April 2024: Join the Green Web RevolutionGreenSEO April 2024: Join the Green Web Revolution
GreenSEO April 2024: Join the Green Web RevolutionWilliam Barnes
 
How to Leverage Behavioral Science Insights for Direct Mail Success
How to Leverage Behavioral Science Insights for Direct Mail SuccessHow to Leverage Behavioral Science Insights for Direct Mail Success
How to Leverage Behavioral Science Insights for Direct Mail SuccessAggregage
 
Defining Marketing for the 21st Century,kotler
Defining Marketing for the 21st Century,kotlerDefining Marketing for the 21st Century,kotler
Defining Marketing for the 21st Century,kotlerAmirNasiruog
 
VIP 7001035870 Find & Meet Hyderabad Call Girls Film Nagar high-profile Call ...
VIP 7001035870 Find & Meet Hyderabad Call Girls Film Nagar high-profile Call ...VIP 7001035870 Find & Meet Hyderabad Call Girls Film Nagar high-profile Call ...
VIP 7001035870 Find & Meet Hyderabad Call Girls Film Nagar high-profile Call ...aditipandeya
 
Avoid the 2025 web accessibility rush: do not fear WCAG compliance
Avoid the 2025 web accessibility rush: do not fear WCAG complianceAvoid the 2025 web accessibility rush: do not fear WCAG compliance
Avoid the 2025 web accessibility rush: do not fear WCAG complianceDamien ROBERT
 

Último (20)

Cost-effective tactics for navigating CPC surges
Cost-effective tactics for navigating CPC surgesCost-effective tactics for navigating CPC surges
Cost-effective tactics for navigating CPC surges
 
Foundation First - Why Your Website and Content Matters - David Pisarek
Foundation First - Why Your Website and Content Matters - David PisarekFoundation First - Why Your Website and Content Matters - David Pisarek
Foundation First - Why Your Website and Content Matters - David Pisarek
 
Marketing Management Presentation Final.pptx
Marketing Management Presentation Final.pptxMarketing Management Presentation Final.pptx
Marketing Management Presentation Final.pptx
 
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...How videos can elevate your Google rankings and improve your EEAT - Benjamin ...
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...
 
Brand Strategy Master Class - Juntae DeLane
Brand Strategy Master Class - Juntae DeLaneBrand Strategy Master Class - Juntae DeLane
Brand Strategy Master Class - Juntae DeLane
 
CALL ON ➥8923113531 🔝Call Girls Hazratganj Lucknow best sexual service Online
CALL ON ➥8923113531 🔝Call Girls Hazratganj Lucknow best sexual service OnlineCALL ON ➥8923113531 🔝Call Girls Hazratganj Lucknow best sexual service Online
CALL ON ➥8923113531 🔝Call Girls Hazratganj Lucknow best sexual service Online
 
Factors-Influencing-Branding-Strategies.pptx
Factors-Influencing-Branding-Strategies.pptxFactors-Influencing-Branding-Strategies.pptx
Factors-Influencing-Branding-Strategies.pptx
 
The Rise of Virtual Influencers: A New Era in Social Media Marketing.pptx
The Rise of Virtual Influencers: A New Era in Social Media Marketing.pptxThe Rise of Virtual Influencers: A New Era in Social Media Marketing.pptx
The Rise of Virtual Influencers: A New Era in Social Media Marketing.pptx
 
Uncover Insightful User Journey Secrets Using GA4 Reports
Uncover Insightful User Journey Secrets Using GA4 ReportsUncover Insightful User Journey Secrets Using GA4 Reports
Uncover Insightful User Journey Secrets Using GA4 Reports
 
Brand experience Dream Center Peoria Presentation.pdf
Brand experience Dream Center Peoria Presentation.pdfBrand experience Dream Center Peoria Presentation.pdf
Brand experience Dream Center Peoria Presentation.pdf
 
Labour Day Celebrating Workers and Their Contributions.pptx
Labour Day Celebrating Workers and Their Contributions.pptxLabour Day Celebrating Workers and Their Contributions.pptx
Labour Day Celebrating Workers and Their Contributions.pptx
 
No Cookies No Problem - Steve Krull, Be Found Online
No Cookies No Problem - Steve Krull, Be Found OnlineNo Cookies No Problem - Steve Krull, Be Found Online
No Cookies No Problem - Steve Krull, Be Found Online
 
Unraveling the Mystery of the Hinterkaifeck Murders.pptx
Unraveling the Mystery of the Hinterkaifeck Murders.pptxUnraveling the Mystery of the Hinterkaifeck Murders.pptx
Unraveling the Mystery of the Hinterkaifeck Murders.pptx
 
Enjoy Night⚡Call Girls Dlf City Phase 4 Gurgaon >༒8448380779 Escort Service
Enjoy Night⚡Call Girls Dlf City Phase 4 Gurgaon >༒8448380779 Escort ServiceEnjoy Night⚡Call Girls Dlf City Phase 4 Gurgaon >༒8448380779 Escort Service
Enjoy Night⚡Call Girls Dlf City Phase 4 Gurgaon >༒8448380779 Escort Service
 
Local SEO Domination: Put your business at the forefront of local searches!
Local SEO Domination:  Put your business at the forefront of local searches!Local SEO Domination:  Put your business at the forefront of local searches!
Local SEO Domination: Put your business at the forefront of local searches!
 
GreenSEO April 2024: Join the Green Web Revolution
GreenSEO April 2024: Join the Green Web RevolutionGreenSEO April 2024: Join the Green Web Revolution
GreenSEO April 2024: Join the Green Web Revolution
 
How to Leverage Behavioral Science Insights for Direct Mail Success
How to Leverage Behavioral Science Insights for Direct Mail SuccessHow to Leverage Behavioral Science Insights for Direct Mail Success
How to Leverage Behavioral Science Insights for Direct Mail Success
 
Defining Marketing for the 21st Century,kotler
Defining Marketing for the 21st Century,kotlerDefining Marketing for the 21st Century,kotler
Defining Marketing for the 21st Century,kotler
 
VIP 7001035870 Find & Meet Hyderabad Call Girls Film Nagar high-profile Call ...
VIP 7001035870 Find & Meet Hyderabad Call Girls Film Nagar high-profile Call ...VIP 7001035870 Find & Meet Hyderabad Call Girls Film Nagar high-profile Call ...
VIP 7001035870 Find & Meet Hyderabad Call Girls Film Nagar high-profile Call ...
 
Avoid the 2025 web accessibility rush: do not fear WCAG compliance
Avoid the 2025 web accessibility rush: do not fear WCAG complianceAvoid the 2025 web accessibility rush: do not fear WCAG compliance
Avoid the 2025 web accessibility rush: do not fear WCAG compliance
 

To study the influence of retailer on the customer buying decision

  • 1. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 1 To Study: The Influence of Retailers on Customers Buying Decision
  • 2. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 2 Chapter 1 Objective & Scope of the Study
  • 3. To Study: The Influence of Retailers on Customer Buying Decision Objective of the Study It is in retailing that very drastic changes have occurred during the last two-decades. Some institutions have disappeared whereas newer ones have been added. This process of deletion / addition still continues in newer forms. There is large scale retailing shops together with very small units, both working simultaneously. Thus it is very important for the retailers to understand the need of the customers & satisfy them to the level required for retaining them as customers & creating a long term relationship. Study indicates the preference level of the customers towards retail stores. Study also focuses on the factors which influence more to customers to visit the retail stores. It reflects buying behavior of customers & the factors need to be understood by the retailer to satisfy & build the customers relationship for long term. The study will indicate weather private label products are preferred or not. It indicates how the retail organizations works & how important it is to understand satisfaction level of customers towards it. The Study mainly focus on the following factors; • To study the level of influence retailer has on customers & the buying behavior of the customers affecting the working of the retail stores • To study the preference level, of products to be purchased by customers from retail stores. • To identify the qualities and the skills of retailer that impact the buying decision of the customers. Mumbai Institute of Management & Research (MIMR) Page | 3
  • 4. To Study: The Influence of Retailers on Customer Buying Decision Scope of the Study The Scope of the Study defines the parameters of the project To Study: The Influence of Retailers on Customer Buying Decision. It is the borders where the objective, knowledge, instruction or outcome of the activity is found. Specification: - The project was Specific to analyse the buying behavior of the customers from the retail stores. - The retail stores were restricted to the local Mom & Pop Stores, Kirana shops & the neighborhood shops. Measurable: - The sample selected was of the Retail Stores & Customer in general of all age group. - The size of the sample was; o 100: Retail Stores o 150: Customer. Hypotheses: - The Scope of the research was carried out with the hypotheses assumption; H0 : (H0 = 0) : There is No Significant impact of the retailers on the buying decision of the customers. Ha : (Ha = 0) : There is Significant impact of the retailers on the buying decision of the customers. Limitation: - The project was Limited to the area of Kurla, Chunabhattii & Sion for the period of 2 months (2nd May 2012 – 30th June 2012) Mumbai Institute of Management & Research (MIMR) Page | 4
  • 5. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 5 Chapter 2 Introduction to Retail Sector
  • 6. To Study: The Influence of Retailers on Customer Buying Decision Introduction to Retail Sector "Success in business requires training and discipline and hard work. But if you're not frightened by these things, the opportunities are just as great today as they ever were" - David Rockefeller Selling of Goods & services from the Individual trader or by a business unit to the end-user or customer is called as retail. It is an important part of everyone’s life which is mainly based on the supply-chain system. The retailing business is carried out in small stocks where in the retailer purchases the goods & products from the manufactures or the wholesaler in huge quantity and sale them in small units & small quantity to the customers for nominal profit. Retailing also includes service activities where people offer their knowledge and time to improve productivity, performance, potential, and sustainability, public utility; etc for the benefit of society. The basic characteristic of this sector is the production of services instead of end products. The Retail sector has seen a huge amount of changes in the fast few decants, especially the Indian Retail Sector. Indian Retail Industry is at a stage where it requires an explosion to take place within the sector, market our environmental factors around. The foundation of the retail industry dates back to times where retailing was focusing on the rural market & customers in the village fairs, Meals or in the weekly markets. These stores were highly unorganized. The development of the retail sector took place with the establishment of retail stores in the locality for convenience. With the government intervention the retail industry in Indian retail sector took a new phase. Outlets for Public Distribution System, Cooperative stores and Khaki stores were set up which required low investments for its establishment. With the growth in the Per Capita Income of individual, rising standard of living etc; the retail sector in India contributed towards a new aspect with the setting up of the different International Brand Outlets, Hyper or Super markets, shopping malls and departmental Mumbai Institute of Management & Research (MIMR) Page | 6
  • 7. To Study: The Influence of Retailers on Customer Buying Decision stores. Shopping malls emerged in the urban areas giving a world-class experience to the customers. Mumbai Institute of Management & Research (MIMR) Page | 7
  • 8. To Study: The Influence of Retailers on Customer Buying Decision The retail industry continued in India in the form of Kiranas till 1980. Soon, following the modernisation of the retail sector in India, many companies started pouring in the retail industry in India like Bombay Dyeing, Grasim etc. As has been mentioned earlier the retail sector in India can be widely split into the organised and the unorganized sector. The unorganized sector is predominant. We may discuss in detail the different divisions of the retail sector in India. Unorganized Retail Sector The unorganized retail sector basically includes the local kiranas, hand cart, the vendors on the pavement etc. This sector constitutes about 98% of the total retail trade. But Foreign Direct Investment in the retail sector is expected to shrink the employment in the unorganized sector and expand that in the organized one. Organised Retail Sector In the organised sector trading is undertaken by the licensed retailers who have registered themselves to sales as well as income tax. The organised retail sector have in their ambit, corporate backed hypermarkets and retail chains. The private large business enterprises are also included under the organised retail category. The organised retail sector can be further subdivided into: Instore Retailers: This type of retail format is also known as the brick and mortar format. These retail stores are in the form of fixed point sale outlets. They are specially designed to lure the customers. There are different types of stores through which the instore retailers operate. Branded Stores appear in the form of exquisite showrooms. Here the total range of a particular brand is available and the quality of the product is certified by the government. There are also Multi Brand Specialty Stores that sell a series of brands so that the consumer can choose from the wide array of brands. Department stores have a large number of brands and products catering to all basic needs to luxurious items as well. Supermarkets are basically self service retail stores. Discount Stores offer commodities at reduced prices. In Hyper Marts customers have wide variety of products to choose from and they are also available at discounted rates. Convenient stores are located in prominent places within the reach of majority of the customers and do not operate in stringent work hours. Shopping Malls are a storehouse of a large variety of retail shops situated close to each other. Mumbai Institute of Management & Research (MIMR) Page | 8
  • 9. To Study: The Influence of Retailers on Customer Buying Decision 2.1. Evolution of the Retail Sector Figure | 2.1 Evolution of the Retail Sector We in India need solutions tailor-made to our conditions. In a country, where culture and values play a very huge role in our habits- we have to have Indianised solutions! Ours is perhaps the only country in the world, where cigarettes are sold in singles and two‘s and not as packets - forcing the companies to have a robust distribution system – that includes servicing a pan dabba owner three times with a cycle driven salesman- and offer a few hours credit. Today, the Indian consumer behaviour is rapidly changing with a shift in new generation's preference towards luxury commodities. With new boom in the retail industry, the country has identified new scope for real estate development. The already revolutionizing urbanization and growing demand for finished products has necessitated development of new space for retail outlets. Retail sector essentially targets the middle class and with there being an estimated more than half rise in middle class the future of retail looks bright. Mumbai Institute of Management & Research (MIMR) Page | 9 Figure 5.1 Evolution of the Retail Sector
  • 10. To Study: The Influence of Retailers on Customer Buying Decision Old Retail Sector The era of rural retail industry could be categorized into two formats: weekly markets and village fairs. Primarily weekly formats catered to the daily necessities of villagers. Village fairs were larger in size with a wide variety of goods sold from food, clothing, cosmetics and small consumer durables. The traditional era saw the emergence of the neighborhood 'Kirana' store to cater to convenience of the Indian consumers. The era of government support saw indigenous franchise model of store chains run by Khadi & Village Industries Commission. The KVIC has a countrywide chain of 7000 plus stores in India. This period also witnessed the emergence of shopping centers with car parking facility. Over the last three years, this sector has witnessed an exorbitant growth due to the establishment of numerous international quality formats to suit the Indian purchase behavior, the improvement in retail processes, the development of retail specific properties and the emergence of both, domestic and international organizations. Evolved Retail Sector The retail sector was earlier dominated by the un-organized sector. It was more of a seller’s market, with a limited number of brands, and little choice available to customers. Lack of trained manpower, tax laws and government regulations all discouraged the growthof organized retailing in India during that period. One of the main factors behind the un-organized sector was lack of consumer awareness and restrictions over entry of foreign players into the sector also contributed to the delay in the growth of organized retailing. Foundation for organized retail in India was laid by Kishore Biyani of Pantaloon Retails India Limited (PRIL). Following Pantaloon's successful venture a host of Indian business giants such as Reliance, Bharti, Birla and others are now entering into retail sector. A number of factors are driving India's retail market. These include: increase in the young working population, hefty pay-packets, nuclear families in urban areas, increasing working-women population, increase in disposable income and customer aspiration, increase in expenditure for luxury items, and low share of organized retailing. India's retail boom is manifested in sprawling shopping centers, multiplex- malls and huge complexes that offer shopping, entertainment and food all under one roof. Mumbai Institute of Management & Research (MIMR) Page | 10
  • 11. To Study: The Influence of Retailers on Customer Buying Decision Current Retail Sector Organized retailers are the contemporary formats by which shoppers have the edge of a world class shopping experience. Fine examples of these formats are Pantaloon, Shoppers Stop and Trent. Organized retail may broadly be classified into the following formats- Malls: The largest form of organized retiling today. Malls are located mainly in metro cities, in proximity to urban outskirts, this format ranges from approximately 60,000 sq ft to 7, 00, 000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Hypermarkets: They are typically large, starting from 40,000sq. ft plus are usually located outside the city limits. This format comprises of a multiple division layout, and usually has an" industrial- look" interior. Hypermarkets generally provide daily necessities and grocery like items. Pricing is competitive and they also offer volume discounts. MBO's Multi Brand outlets: Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros. Super Markets: Large self service outlets, catering to varied shopper needs are termed as Super markets. These are located in or near residential high streets. These stores contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from a size of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales. Discount Stores: As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods. Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium. Mumbai Institute of Management & Research (MIMR) Page | 11
  • 12. To Study: The Influence of Retailers on Customer Buying Decision Departmental Store: Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. They are further classified into localized departments such as clothing, toys, home, groceries, etc. Exclusive Store: Ranging from a size of 500 sq ft to 5,000 sq ft. & above, this format is owned/ managed by the Company or through its franchise offering single & multiple bands. Specialty Store: These formats focus on a specific product category, Medium sized layout in strategic location. Specialty stores provide a large variety base for the consumers to choose. Future Retail Sector Retail is clearly the sector that is poised to show the highest growth in the next five years. The sector is set for a revolution, as both the present players and new entrants are gearing up to explore the market. There has been a 1% rise in January 2009 retail as compared to 2008. Compared to the past retail market, the future Market will be more like • Speed & Imagination • Abdication • Design Management • Seamlessness • Personalization • Technology Drives Change • Thrive In Chaos • Relationships In the future modern retail development in India is expected to be focused on the following cities. In the west Retail players will concentrate on cities like Mumbai, Pune and Ahmedabad. In the North Delhi and the National Capital Region will see increased investments in terms of retailing. In the south Chennai, Bangalore, Hyderabad and in the east Kolkata will be targeted for retailing. Mumbai Institute of Management & Research (MIMR) Page | 12
  • 13. To Study: The Influence of Retailers on Customer Buying Decision Companies like Shoppers Stop, Trent, Reliance, Lifestyle, Tanishq, Crossroads, Akbarallys' and Tanishq already have planned to invest over Rs 5,000cr. Trent is on the edge to take both its brands 'Star India Bazaar' and 'Westside' to new cities, meanwhile Shoppers' Stop has recently geared up for expansion of present ones and to add 11 new stores including two hypermarkets. Also, Pantaloon has planned to add eight 'Big Bazaar' malls within the next 6 to 8 months. Mumbai Institute of Management & Research (MIMR) Page | 13
  • 14. To Study: The Influence of Retailers on Customer Buying Decision Figure | 2.2 Indian Retail Market Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. While India presents a large market opportunity given the number and increasing purchasing power of consumers, there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Challenges include: Geographically dispersed population, small ticket sizes, complex distribution network, and little use of IT systems, limitations of mass media and existence of counterfeit goods. The emphasis is on retail as a brand rather than retailers selling brands. The focus should be on branding the retail business itself. In their preparation to face fierce competitive pressure, Indian retailers must come to recognize the value of building their own stores as brands to reinforce their marketing positioning, to communicate quality as well as value for money. Sustainable competitive advantage will be dependent on translating core values combining products, image and reputation into a coherent retail brand strategy. Mumbai Institute of Management & Research (MIMR) Page | 14
  • 15. To Study: The Influence of Retailers on Customer Buying Decision The future of the India Retail Industry looks promising with the growing of the market, with the government policies becoming more favorable and the emerging technologies facilitating operations. Mumbai Institute of Management & Research (MIMR) Page | 15
  • 16. To Study: The Influence of Retailers on Customer Buying Decision 2.2. Retailers Role in Retailing Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesaler, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations or online. Retailing includes subordinated services, such as delivery. The term "retailer" is also applied where a service provider services the needs of a large number of individuals, such as a public utility, like electric power. A retailer is basically "A business or person that sells goods to the consumer, as opposed to a wholesaler or supplier, who normally sell their goods to another business." A retailer is a middleman who procures goods from the wholesalers and sells it to the final consumers. They form a vital link in the channel of distribution of products neither because without him, neither the products would sell to distant places nor would it be possible for consumers to buy goods of their choice in shops located nearby. They have a much stronger personal relationship with the consumers and deal directly with the people of varied tastes and temperaments & form the last link in the chain of distribution and give the final selling price the product. The retailers provide important services and solve problems of the manufacturers and wholesalers on one hand and the consumers on the other hand. Shops may be on residential streets, streets with few or no houses or in a shopping mall. Shopping streets may be for pedestrians only. Sometimes a shopping street has a partial or full roof to protect customers from precipitation. Online retailing, a type of electronic commerce used for business-to-consumer (B2C) transactions and mail order, are forms of non-shop retailing. Shopping generally refers to the act of buying products. Recreational shopping often involves window shopping (just looking, not buying) and browsing and does not always result in a purchase. The retailer is in direct contact with the customers and so he can play a significant part in helping the manufacturer reduce the gap between actual and perceived quality. The Mumbai Institute of Management & Research (MIMR) Page | 16 Figure 5.1 Evolution of the Retail Sector
  • 17. To Study: The Influence of Retailers on Customer Buying Decision retailer should also ensure quality at the various stages of the supply chain so that the quality of the product is not affected. 2.3. SWOT Analysis of Retail Stores SWOT analysis (alternately SWOT Matrix) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Strengths: Characteristics of the business, or project team that give it an advantage over others. Weaknesses (or Limitations): Characteristics that place the team at a disadvantage relative to others. Opportunities: External chances to improve performance (e.g. make greater profits) in the environment. Threats: External elements in the environment that could cause trouble for the business or project. Strengths • Demographic favor • Rising disposable income • Increase in number of people in earner category • Urbanization • Shopping convenience • Low labor cost of skilled ones Mumbai Institute of Management & Research (MIMR) Page | 17 Figure 5.1 Evolution of the Retail Sector
  • 18. To Study: The Influence of Retailers on Customer Buying Decision • Changing consumer habits and lifestyles • Plastic card revolution • Greater availability of quality retail space. Mumbai Institute of Management & Research (MIMR) Page | 18
  • 19. To Study: The Influence of Retailers on Customer Buying Decision Weakness • Policy related issues • Limited consumer insight • Inadequate human resources • Taxation hurdle • Underdeveloped supply chain. Opportunities • Potential for investment. • Sectors with high growth potential. • Fastest growing formats. • Rural retail. • Wholesale trading. • E-retailing • Retail franchising. Threats • Political issues • Social issues • Inflation • Lack of differentiation among the malls that are coming • Poor inventory turns and stock availability measures. Mumbai Institute of Management & Research (MIMR) Page | 19
  • 20. To Study: The Influence of Retailers on Customer Buying Decision Introduction to Retail Sector Key Learning Points Unorganized Retail Sector Organised Retail Sector Evolution of the Retail Sector • Old Retail Sector • Evolved Retail Sector. • Current Retail Sector • Future Retail Sector Retailers Role in Retailing SWOT Analysis of Retail Stores • Strengths • Weakness • Opportunities • Threats Mumbai Institute of Management & Research (MIMR) Page | 20
  • 21. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 21 Chapter 3 Skills Required For Retailers
  • 22. To Study: The Influence of Retailers on Customer Buying Decision Skills Required For Retailers “A winner is someone who recognizes his God-given talents, works his tail off to develop them into skills, and uses these skills to accomplish his goals.” - Larry Bird A skill is the learned capacity to carry out pre-determined results often with the minimum outlay of time, energy, or both. In other words the abilities that one possesses. Skills can often be divided into domain-general and domain-specific skills. A skill may be defined broadly as a learnt ability that improves with practice in time. For example: In the domain of work, some general skills would include time management, teamwork and leadership, self motivation and others, whereas domain -specific skills would be useful only for a certain job. Skill usually requires certain environmental stimuli and situations to assess the level of skill being shown and used. Technical and job-related skills are a must, but they are not sufficient when it comes to progressing up the ladder. "Soft skills are very important in business. It is essential to be technically sound, but one should also have the ability to convey the idea to the masses in the simplest possible manner," says Mayurkumar Gadewar, an ERP consultant with Pricewaterhouse Coopers. With the boom in outsourcing taking root across industries, many professionals and subject matter experts directly deal with their clients on a regular basis. Approachability and people skills are what ultimately sustain the contract their employers have bagged. "Planning is necessary but execution is equally important. And it takes soft skills to execute any idea because it involves dealing with people directly," says Gadewar. Soft skills are personal attributes that enhance an individual's interactions, job performance and career prospects. Unlike hard skills, which are about a person's skill set and ability to perform a certain type of task or activity, soft skills relate to a person's ability to interact effectively with coworkers and customers and are broadly applicable both in and outside the workplace. Mumbai Institute of Management & Research (MIMR) Page | 22
  • 23. To Study: The Influence of Retailers on Customer Buying Decision 3.1. Observation Skills Observation of individuals or groups at work is a method of getting a direct and realistic impression of what is happening. It can be done by a detached or an involved observer, or by participant observation. Observation means studying role holders at work, noting what they do, how they do it, and how much time it takes. This method is most appropriate for routine administrative or manual roles but it seldom used because of the time it takes. Better observation takes two things, the effort to observe what you want to know. The second is to have more knowledge about what you are observing. The first part takes patience and practice. The human mind is a reprogrammable computing device. Your mind forms new neural pathways and optimizes existing pathways with practice and repetition. Any task can be subject to this effect from driving to playing sports. Consider the example of learning a card game. I find that with a few weeks of playing I get far better and faster at a game. My mind has formed some neural connections that allow me to process the needed problem solving skills more quickly. These connections are improved and optimized through repletion and practice. If you make a point to get out and regularly practice the skill you desire it will get easier. The second essential life skill of self-observation may well be the most important. It seems so obvious and so simple and yet we are extremely unskilled and unpracticed at paying attention to our own thoughts, feelings, and actions. We tend to operate on “automatic pilot,” as if we have no control. The reality is that unless we know what we are doing, we have little chance of changing it—and often the simple act of becoming aware causes us to do something differently. When we practice self-observation—noticing what we are thinking, feeling, doing, and imagining—it allows us to become self-aware. When we are aware of what we are doing, we realize that we have choices and choices are what make us powerful. Mumbai Institute of Management & Research (MIMR) Page | 23
  • 24. To Study: The Influence of Retailers on Customer Buying Decision Workplace observation is simply noticing what is going on around you. A mental health environment can be a fast-paced environment at times with so much going on that you need eyes everywhere and at times and it can be very distractive. Most of the time we are very selective about what we pay attention to, that is what we do every day. For example, just think about driving to work this morning and think about the things that you noticed and the things that you didn’t. Did you notice any people walking? Can you remember what they were wearing? What type of dog they were walking? Observation skills mean the ability to see beyond a limited scope. It is the ability to sense the feelings of others when things are going good and when things are not so good. While observing we must remember that our mind will see what it wants to; the eyes will often lie... Importance of Observation Skills Observation is an important part of learning how to teach. Much of what beginner teachers need to be aware of cannot be learned solely in the university class. Therefore classroom observation presents an opportunity to see real-life teachers in real-life teaching situations. In their reflections, many of our teacher friends mention their observations and how these observations influence the way they plan and teach. Teachers are forever reflecting and making decisions, and when they see someone else in action, in as much as they are seeing someone else, they are almost simultaneously seeing themselves. • Remove tension in the group • Who talks to whom • Interest level of the group • Sensing feelings of individuals • Who is being left out • Reaction to comments • When the group avoids the topic Mumbai Institute of Management & Research (MIMR) Page | 24
  • 25. To Study: The Influence of Retailers on Customer Buying Decision Improving Observation Skills Improving Observation provides opportunities for both experienced and new observers to reflect on key features of lessons, particularly the effectiveness of the learning. Powers of observation allow you to gather information on the world around you and, with practice, learn how to evaluate that information to make determinations. Doing so requires practice and time spent observing your surroundings. We have to learn to avoid letting your mind get in the way of making your observations, while you train yourself to use all of your senses together. The power of observation is the power to observe, assess and understand the world around you with a clear perspective. • Look at every activity in a clear manner. • Judge people and their perceptions. • Ask questions to people & to your mind. • Open to new experiences. • Open to new ideas. • Practicing good listening skills. Critical for Developing Observation Skills Research shows employers hire not only for technical abilities, but also incorporate emotional intelligence, or soft skills, in their decisions. In fact, many companies, including Whole Foods, PepsiCo. L’Oreal and Coca-Cola are investing in assessing and developing emotional intelligence to improve their bottom lines. We must focus and work on improving skills in an expanded array of areas to be most competitive as a job seeker and as a valued employee. • People watching • Seeing the world as it is • Curiosity • Listening skills • Personal biases • Seek the inputs of others Mumbai Institute of Management & Research (MIMR) Page | 25
  • 26. To Study: The Influence of Retailers on Customer Buying Decision • New experiences and possibilities • Comfortable with ambiguity • Knowledge and attitudes of people • Self-knowledge & impact on others. Mumbai Institute of Management & Research (MIMR) Page | 26
  • 27. To Study: The Influence of Retailers on Customer Buying Decision 3.2. Listing Skills Listening is the absorption of the meanings of words and sentences by the brain. Listening leads to the understanding of facts and ideas. But listening takes attention, or sticking to the task at hand in spite of distractions. It requires concentration, which is the focusing of your thoughts upon one particular problem. A person who incorporates listening with concentration is actively listening. It talked about the importance of good listening skills and the difference between hearing and listening. Hearing is a physical ability while listening is a skill. Listening skills allow one to make sense of and understand what another person is saying. In other words, listening skills allow you to understand what someone is "talking about". Thus the essence of active listening is as brutally simple as it is effective: paraphrasing the speakers words back to them as a question. The process is successful if the person receiving the information gives feedback which shows understanding for meaning. Good listening skills make workers more productive. Figure | 4.1.1 Listening Effective listening is a way of showing concern for subordinates, and that fosters cohesive bonds, commitment, and trust. Effective listening tends to reduce the frequency of interpersonal conflict and increases the likelihood that when conflicts emerge they will be resolved Mumbai Institute of Management & Research (MIMR) Page | 27
  • 28. To Study: The Influence of Retailers on Customer Buying Decision with a "win-win" solution. In addition, if you listen to the people you manage; you will learn "what makes them tick." When you know what makes them tick, you will be more effective at motivating them. You can encourage them when they need encouraging, and you will know what kinds of things they value as rewards for a job well done (e.g., public praise, autonomy, challenge, etc.). Mumbai Institute of Management & Research (MIMR) Page | 28
  • 29. To Study: The Influence of Retailers on Customer Buying Decision Effective listening enhances the communication quality. It makes all attentive. It encourages optimistic attitude, healthy relations and more participation. It leads to better decision- making in an organization. Effective listening is directly related to our ability to do team work. We listen at about an efficiency rate of 25 percent maximum, and we remember only about 50 percent of what is delivered during a ten minute speech / lecture / communication. Barriers to Listening "As a leader you have to be a really good listener. You need to know your own mind but there is no point in imposing your views on others without some debate. No one has a monopoly on good ideas or good advice. Get out there, listen to people, draw people out, and learn from them." Effective leaders and influencers master the art of listening, and they understand that people want to be heard. In our fast-paced world, active and empathetic listening is a rarity, and it's not as simple as it sounds. Even if we know how to listen, we often don't for a number of reasons. • Distraction • No attention • Less retention power • Nervous • Interpretation • Language • Gender difference • Distance • Body language • Mode of communication Mumbai Institute of Management & Research (MIMR) Page | 29
  • 30. To Study: The Influence of Retailers on Customer Buying Decision • Response • One sided conversation • No been prepaid • Own though & feelings Mumbai Institute of Management & Research (MIMR) Page | 30
  • 31. To Study: The Influence of Retailers on Customer Buying Decision Strategies for Effective Listening The listener has to sincerely desire to understand the speaker and think from his angle. A person, who tries to understand others, first is understood by others well. Stop: Focus on the other person, their thoughts and feelings. Consciously focus on quieting your own internal commentary, and step away from your own concerns to think about those of the speaker. Give your full attention to the speaker. Look: Pay attention to non-verbal messages, without letting yourself is distracted. Notice body language and non-verbal cues to allow for a richer understanding of the speaker’s point. However, avoid getting distracted from the verbal message. Listen: Listen for the essence of the speaker’s thoughts: details, major ideas and their meanings. Seek an overall understanding of what the speaker is trying to communicate, rather than reacting to the individual words or terms that they use to express themselves. Be empathetic: Imagine how you would feel in their circumstances. Be empathetic to the feelings of the speaker, while maintaining a calm centre within you. You need not be drawn into all of their problems or issues, as long as you acknowledge what they are experiencing. Ask questions: Use questions to clarify your understanding, as well as to demonstrate interest in what is being said. Listening facilitates correct understanding of problems faced by the members of the organization. Listening helps one obtain adequate data to solve problems. Listening motivates the speaker or the complaining employee or the deliberating subordinate. Listening improves or lifts up the image of the listener, especially the manager. Mumbai Institute of Management & Research (MIMR) Page | 31
  • 32. To Study: The Influence of Retailers on Customer Buying Decision Listening makes one a leader, an efficient mediator and a deft trouble-shooter. Now what we have to master is the listening, since there are a lot of good things supporting good listening. We will discuss here the strategies, skills and best practices to reach the best stage of listening. Such strategies also constitute determinants of good listening. Mumbai Institute of Management & Research (MIMR) Page | 32
  • 33. To Study: The Influence of Retailers on Customer Buying Decision 3.3. Demonstration Skills The Demonstration is the main element in a sales process. Demonstrations can build or destroy the product or the activity for which the demonstration is been carried on. Demonstrating is not just showing product knowledge. It covers all accept to allow the customer, observer, consumer to participant to avoid common errors and turn the demonstration into a valuable of the sales process or an excellent experience process. Demonstration is basically showing a proof, explaining or making clear by actual use of examples or experiments. It means to clearly show. In teaching through demonstration, students are set up for better understanding of the subject matter & more effectively as shown in a study the “action speaks louder than words” is the technique followed by the teachers thought demonstration. Demonstration is not only in classrooms but also outside it helps to improve the skills of the facilitator to facilitate the strategies to the audience. Demonstration is basically a method of “Doing” by using teaching skills; it is showing learns the method of performing an activity practically and then letting the observer or learner do the act. Importance of a Demonstration “I hear and I forget. I see and I remember. I do and I understand.” When an activity is performed by the observer, learner or the customer on their own they are more confident to learn or buy. The act is learned in a better manner under supervision. • Visual appeal Mumbai Institute of Management & Research (MIMR) Page | 33
  • 34. To Study: The Influence of Retailers on Customer Buying Decision • Proof • Senses are used • Better Comparison • Improvers Selling process Mumbai Institute of Management & Research (MIMR) Page | 34
  • 35. To Study: The Influence of Retailers on Customer Buying Decision Concern in a Demonstration • Ease of use • Understanding the technical details • Safety in explanation • Speed in explanation • Comfort a person Method of Successful Demonstration 1. Understand you audience • Experience or knowledge • Demonstrating New Technique or Basic Information 2. Understand the objective of demonstration • Plan objective • Expectation 3. Plan the demonstration process & materials required • Time • List of materials / tools 4. Trial or Testing of demonstration process • Simple procedures • Practice steps and activities Mumbai Institute of Management & Research (MIMR) Page | 35
  • 36. To Study: The Influence of Retailers on Customer Buying Decision “Demonstration Should Be With the Actual Product” Mumbai Institute of Management & Research (MIMR) Page | 36
  • 37. To Study: The Influence of Retailers on Customer Buying Decision 3.4. Questioning Skills Questions are basically a communication process done by two people or group of people to bring out a response and gain information. It is nothing but a sentence framed in a manner of getting a response in from of information and clarification. Questions are asked in order to get what we want, to clear our doubt, to seek information, to show we are following others, to understand, or may be to challenge others etc. the questions can be asked by anyone there is no age limit or professional barriers for asking the questions. Whatever the need for asking questions may be, knowing what to ask and how to ask is a significant skill. The manner in which the questions are asked, styles of questioning, motive behind each question, etc factors are very important to be understood. Thus it is very essential for every individual to understand and learn the questioning skills. Questioning skills are important to understand the audience situation and respond them, understand their needs. On the whole it is basically understanding the audience and asking them the right type of questions at the right time in a correct manner. Importance of Good Questioning “Garbage in, garbage out” The concept of Garbage in, garbage out… is followed in communication. If we ask any thing foolish the response what we will get will also be waste. Mumbai Institute of Management & Research (MIMR) Page | 37
  • 38. To Study: The Influence of Retailers on Customer Buying Decision • Interaction • Challenge others • Judging • Response & Feedback getting indication “All our knowledge results from questions, which is another way of saying that questioning is our most important intellectual tool.” Mumbai Institute of Management & Research (MIMR) Page | 38
  • 39. To Study: The Influence of Retailers on Customer Buying Decision Improving Questioning Skills Most of the times, conversation starts with a question, hence it is very important to improve our questioning skills. • Knowledge • Translation & understanding why is it their need to ask the question • Demonstration & Communication manner • Breakdown the questions • Design & compose • Evaluate the answer with the question asked Types of Questions Asked Open Ended Questions: Questions having long explanation & answers. (Describe your name?) Close Ended Questions: Question can be answered with either a single word or a short phrase. It can either be 'yes' or 'no'. (What is your name?) Echo Questions: Directly takes up part of an earlier said sentence. (The Queen killed the King. / The Queen killed the King?) Paraphrasing Questions: Paraphrasing questions are asked in paragraphs form, having a short response. (You were asking that…Is that right?) Probing Questions: Is another open-ended question, but it's a follow- up. (Are you able to tell me more about the form you received?) Leading Questions: Questions leading for a response. (You understand what I'm saying, don't you?") Mumbai Institute of Management & Research (MIMR) Page | 39
  • 40. To Study: The Influence of Retailers on Customer Buying Decision Comparative Questions: Questions are often phrased as directed comparisons between the two activities / things. (Is ‘A’ better than “B’…?) Rhetoric Questions: Question asked for a purpose other than to obtain the information the question asks. (Why are you so stupid?) Mumbai Institute of Management & Research (MIMR) Page | 40
  • 41. To Study: The Influence of Retailers on Customer Buying Decision Skills Required For Retailers Key Learning Points Observation Skill: Observation means studying role holders at work, noting what they do, how they do it, and how much time it takes. Listening Skills: Listening leads to the understanding of facts and ideas. But listening takes attention, or sticking to the task at hand in spite of distractions. Demonstration Skills: When an activity is performed by the observer, learner or the customer on their own they are more confident to learn or buy. The act is learned in a better manner under supervision. Questioning Skills: “Garbage in, garbage out” Mumbai Institute of Management & Research (MIMR) Page | 41
  • 42. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 42 Chapter 4 Research Methodology
  • 43. To Study: The Influence of Retailers on Customer Buying Decision Research Methodology “I believe in innovation and that the way you get innovation is you fund research and you learn the basic facts.” - Bill Gate The Indian retail industry is thriving today. There is stiff competition among Indian and foreign retailers to attract customers and retain them. In this tug-of-war, quality retailing has emerged as the solution. The retailer who provides quality products and services along with a quality shopping experience succeeds in the long run. Customer mentality is different in different countries. Particularly in India, there are huge cultural differences among the people of different states, which in turn affect their buying behavior. In this scenario, it becomes necessary for the retailer to survey the customersied culture and expectations so that he can train his staff to appropriately meet these expectations. 4.1. Literature Review Retailers act as buying agents for consumers. They perform various business activities that increase the value of the goods and services they sell to the end consumer. If there were no retailers in the distribution system, consumers would have to personally visit the manufacturers to procure the goods and services required by them. As a buying agent, a retailer performs various activities to satisfy the end consumer. Customer relationship activities have the most impact on customer retention. Every customer service encounter has the potential to gain repeat business or have the opposite effect. The expectation of Mumbai Institute of Management & Research (MIMR) Page | 43
  • 44. To Study: The Influence of Retailers on Customer Buying Decision personalized, relevant offers and service is becoming a primary driver of customer satisfaction and retention in financial services. To understand the purchasing patterns of customers, it is vital to understand the customer nature and examine the external factors that influence their buying behavior. The increasing value perception among customer is putting more pressure on the retailer to offer merchandise of superior quality that is valuable to the consumer’s eye. Retailers explore investment opportunities after analyzing the customer’s needs, aspirations, shopping preferences and buying behavior. Mumbai Institute of Management & Research (MIMR) Page | 44
  • 45. To Study: The Influence of Retailers on Customer Buying Decision Retailing includes the purchasing and selling of products and services to the consumer, who buys them for individual and household consumption. The consumption of goods and services depends on the individual’s preferences and choices. Thus, consumer behavior plays an important role in the determining the success and growth of retail stores. A retail market is a place where all the retailers compete with each other for recognition acceptance through various merchandise promotional activities. Thus, to understand the retail market, one has to understand the structure of the buying population and their behavior. A retailer should understand the structure of the population and their buying behavior, so that he can cater to the needs of the buyer in a better way. Buying behavior deals with the process a consumer undergoes while deciding whether to purchase a product/ service or not. Based on the customer’s nature and his intentions behind purchasing the merchandise, the buying population can be divided in to two categories – the consumer market and the organizational market. India is currently in the second phase of the retail evolution, with domestic customers becoming more demanding with their rising standard of living and changing lifestyles. Change in customers' focus from just buying to broad shopping (buying, entertainment and experience) has led to a pick-up in momentum in organised formats of retailing. Satisfying customers is one of the main objectives of every business. Businesses recognize that keeping current customers is more profitable than having to win new ones to replace those lost. Management and marketing theorists underscore the importance of customer satisfaction for a business’s success. One of the biggest challenges to the retail industry is finding out when something has gone wrong. When customers complain you get a Mumbai Institute of Management & Research (MIMR) Page | 45
  • 46. To Study: The Influence of Retailers on Customer Buying Decision chance to put things right and make sure it never happens again. But research shows that you probably only hear from about 5% of the customers who experience problems. Very often, customers who experience problem in retail environment either don’t know where to complain, or they simply don't want to create a fuss. Mumbai Institute of Management & Research (MIMR) Page | 46
  • 47. To Study: The Influence of Retailers on Customer Buying Decision 4.2. Sampling for the Study 1. Sampling Technique Convenience - Probability sampling (A Probability sampling technique is that in which each element in the population have an equal chance of getting selected). 2. Sample Unit Retail Stores & Customer in general of all age group. 3. Sample Size 100: Retail Stores 150: Customer 4. Sampling Method Sample design is a definite plan of obtaining some items from the whole population. In this survey we have used convenience sampling as our sampling method. 5. Area of Survey The survey was conducted in the areas of Kurla & Chunabhatti, (Sion) Mumbai. Mumbai Institute of Management & Research (MIMR) Page | 47
  • 48. To Study: The Influence of Retailers on Customer Buying Decision 4.3. Collection of data & Research Tools 1. Research Design  Descriptive Research We have used descriptive research design for our study. The objective of descriptive research is to describe the existing problem or a situation to provide insights and understanding. The analysis of primary data is qualitative and the research is most reliable on primary data. 2. Limitation of the Study - Respondents may give biased answers for the required data. - Some respondents had also not given their personal details so it is not possible to get other data from those if needed. - Samples are suspected by the researcher, so it is as per convenience and suspecting skill of us. 3. Sources of data  Primary sources: Information by Customers & Retailers of retail stores.  Secondary sources: Internet, journals, magazines, articles and previous project. 4. Data Collection The survey was conducted through structured questionnaire method of data collection. 5. Data Interpretation Data Interpreted through Graphics & Pie Diagrams. Mumbai Institute of Management & Research (MIMR) Page | 48
  • 49. To Study: The Influence of Retailers on Customer Buying Decision 6. Method Personal Data collection through Direct Questionnaire. Mumbai Institute of Management & Research (MIMR) Page | 49
  • 50. To Study: The Influence of Retailers on Customer Buying Decision Research Methodology Key Learning Points Literature Review: Retailers act as buying agents for consumers. Customer relationship activities have the most impact on customer retention. Sampling for the Study: • Technique • Unit • Size • Method • Area of Survey Collection of data & Research Tools • Research Design • Limitation of the Study • Sources of data • Data Collection • Data Interpretation • Method Mumbai Institute of Management & Research (MIMR) Page | 50
  • 51. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 51 Chapter 5 Data Analysis & Interpretation
  • 52. To Study: The Influence of Retailers on Customer Buying Decision Research Study “If we knew what we were doing it wouldn't be research.” - Albert Einstein Research is the investigation of a particular topic using a variety of reliable, scholarly resources. The three major goals of research are establishing facts, analyzing information, and reaching new conclusions. The three main acts of doing research are searching for, reviewing, and evaluating information. A research study is a scientific way to improve or develop new methods of health care. Studies are designed to answer specific questions on how to prevent, diagnose, or treat diseases and disorders. Many types of research studies exist. For example, clinical trials test new medicines or devices. Other studies use interviews or surveys to understand health or behavior. Research studies are important because they contribute to knowledge and progress on diseases and disorders. Research is the fastest and safest way to find treatments that work. 5.1. Data Analysis & Interpretation After the data have been collected, the researcher turns to the task of analyzing them. The analysis of data requires a number of closely related operations such as establishment of categories, the application of these categories to raw data through coding, tabulation and then drawing statistical inferences. The unwieldy data should necessarily be condensed into as few manageable groups and tables for further analysis. Thus, researcher should classify the raw data into some purposeful and Mumbai Institute of Management & Research (MIMR) Page | 52
  • 53. To Study: The Influence of Retailers on Customer Buying Decision usable categories. Coding operation is usually done at this stage through which the categories of data are transformed into symbols that may be tabulated and counted. Editing is the procedure that improves the quality of the data for coding. With coding the stage is ready for tabulation. Tabulation is a part of the technical procedure wherein the classified data are put in the form of tables. Mumbai Institute of Management & Research (MIMR) Page | 53
  • 54. To Study: The Influence of Retailers on Customer Buying Decision Male Female 54.9% 45.1% Distribution of respondents 1. Gender wise Distribution: Analysis: As the pie - diagram indicates around 54.9% of all respondents considered for samplings are females and the rest 45.1% of the sample are male. This indicates that the ratio of male and female is almost 1:1(approximately) Mumbai Institute of Management & Research (MIMR) Page | 54 CATEGORY TOTAL PERCENTAGE MALE 59 45.1 FEMALE 91 54.9
  • 55. To Study: The Influence of Retailers on Customer Buying Decision 2. Age wise Distribution: Mumbai Institute of Management & Research (MIMR) Page | 55 CATEGORY TOTAL PERCENTAGE 10 – 16 9 11.5 16 – 30 33 20.5 30 - 45 69 46.5 Above 45 39 21.5 0 20 40 60 80 100 120 140 10 – 16 16 - 30 30 - 45 Above 45 Percentage Total
  • 56. To Study: The Influence of Retailers on Customer Buying Decision Analysis: As the graph represents about 46.5% of respondents fall into the age category of 30-45, 21.5% fall into the age group of45 & above, 20.5% are from the age group of 16 – 30 & 11.5% are in the age group of 10 - 16. Mumbai Institute of Management & Research (MIMR) Page | 56
  • 57. To Study: The Influence of Retailers on Customer Buying Decision 3. Occupation wise Distribution: Analysis: As the graph indicates majority of our respondents fall into category of Housewife where as the student’s category response is second highest with 35.2% and that of service is 20% and 2% response is from others. Mumbai Institute of Management & Research (MIMR) Page | 57 CATEGORY TOTAL PERCENTAGE Student 49 35.2 Housewife 69 42.8 Service 28 20 Others 4 2 0 20 40 60 80 100 120 Students Housewife Service Other Percentage Total
  • 58. To Study: The Influence of Retailers on Customer Buying Decision Question wise Analysis of the Data Q1. How frequently do you visit the retail stores? Analysis: As the graph represents 43% of the respondents visited the retail store monthly, 25% of the respondents visited the retail store weekly, 20% of the respondents visited the retail store frequently, and 12% of the respondents visited the retail store. Mumbai Institute of Management & Research (MIMR) Page | 58 CATEGORY TOTAL PERCENTAGE Frequently 25 20 Fortnightly 15 12 Weekly 45 25 Monthly 65 43 0 20 40 60 80 100 120 Frequently Fortnightly Weekly Monthly Percentage Total
  • 59. To Study: The Influence of Retailers on Customer Buying Decision Q2. Choose from the following for which you visit the retail stores? Analysis: As the graph represents 20% of the respondents visited the retail stores for shopping, 42.5% of the respondents visited the retail store for comparison of price, 25.5% of the respondent visited for entertainment and 29% of the respondent visited for time pass. Mumbai Institute of Management & Research (MIMR) Page | 59 CATEGORY TOTAL PERCENTAGE Shopping 60 20 Price 45 42.5 Entertainment 25 25.5 Time pass 20 29 0 10 20 30 40 50 60 70 80 90 100 Shopping Price Entertainment Time Percentage Total
  • 60. To Study: The Influence of Retailers on Customer Buying Decision Q3. What are the factors which influence you to visit the retail stores? Analysis: As the graph represents 33.5% of the respondents visit the retail store for one stop shopping, 20.2% of the respondents visit for product variety, 16.2% of the respondents visit for ambience, 15.4% visit for new product availability, 10.2% visit for price Mumbai Institute of Management & Research (MIMR) Page | 60 CATEGORY TOTAL PERCENTAGE Ambience 21 16.2 One stop 52 33.5 New product 19 15.4 Extra service 8 4.5 Product variety 35 20.2 Price 15 10.2 0 10 20 30 40 50 60 70 80 90 Ambience One stop New product Extra service Product variety Price Percentage Total
  • 61. To Study: The Influence of Retailers on Customer Buying Decision factor & 4.5% of the respondents visited for extra service. Mumbai Institute of Management & Research (MIMR) Page | 61
  • 62. To Study: The Influence of Retailers on Customer Buying Decision Q4. Show your preference level from purchasing the following product category from the retail stores. Mumbai Institute of Management & Research (MIMR) Page | 62 CATEGORY HIGHLY PREFERED PREFERED NOT PREFERED Grocery 32 47 21 Electrics 6 26 68 Packaged foods 26 30 44 Snacks & biscuits 62 32 6 Cosmetics 15 44 41 Clothing 24 49 27 Health care 10 40 50 Handlooms 3 20 77 Vegetables/Fruits 15 35 50 Jewellery 3 20 77 Stationary 10 45 45 0 20 40 60 80 100 120 Not Prefered Prefered Higly Prefered
  • 63. To Study: The Influence of Retailers on Customer Buying Decision Analysis: As per the graph indicates snacks & biscuits (62%) and packet food products (26%) are highly preferred by the respondents, whereas grocery (47%), cosmetics (44%), clothing (49%) fall in preferred category and electronics items (68%), health care (50%), vegetables/fruits (50%), stationary items (45%) fall in not preferred category. Q5. Does advertisement influence you to visit the retail store? Analysis: As the graph indicates 55.5% of respondents are influenced by advertisement “sometime”, 32% Mumbai Institute of Management & Research (MIMR) Page | 63 CATEGORY TOTAL PERCENTAGE Every time 20 12.5 Sometime 85 55.5 Never 45 32 0 20 40 60 80 100 120 140 160 Every time Sometime Never Percentage Total
  • 64. To Study: The Influence of Retailers on Customer Buying Decision respondents are “never” influenced by advertisement, 12.5% respondents are “every time” influenced to visit the retail stores. Mumbai Institute of Management & Research (MIMR) Page | 64
  • 65. To Study: The Influence of Retailers on Customer Buying Decision Q6. Do you purchase the product which you have not planned before visiting the retail stores? Mumbai Institute of Management & Research (MIMR) Page | 65 CATEGORY TOTAL PERCENTAGE Every time 20 25 Sometime 92 48.5 Never 28 26.5 0 20 40 60 80 100 120 140 160 Every time Sometime Never Percentage Total
  • 66. To Study: The Influence of Retailers on Customer Buying Decision Analysis: As per the graph indicates 48.5% of the respondent’s sometime purchase the products, 25% of the respondents purchase the product every time, 26.5% of the respondents never purchases the products. Mumbai Institute of Management & Research (MIMR) Page | 66
  • 67. To Study: The Influence of Retailers on Customer Buying Decision Q7. Choose from product category which you find cheaper in the retail stores. Mumbai Institute of Management & Research (MIMR) Page | 67 CATEGORY TOTAL PERCENTAGE Grocery 28 34.6 Electrics 6 1.5 Packaged foods 12 4 Snacks & biscuits 45 44.3 Cosmetics 15 4.5 Clothing 19 5.5 Health care 1 0.5 Handlooms 3 1 Vegetables/Fruits 10 2.3 Jewellery 3 1 Stationary 8 1.7
  • 68. To Study: The Influence of Retailers on Customer Buying Decision Analysis: As the graph represents 44.3% of the respondents choose snacks and biscuits finds cheaper than other products. Mumbai Institute of Management & Research (MIMR) Page | 68 0 10 20 30 40 50 60 70 80 90 100 Percentage Total
  • 69. To Study: The Influence of Retailers on Customer Buying Decision Q8. Do you buy products which are sold at retail store under their own brand? Analysis: As the graph represents about 22% of respondents never preferred the products which are private labeled, 65.5% of the respondents sometime preferred and 12.5% respondents every time preferred the private label products. Mumbai Institute of Management & Research (MIMR) Page | 69 CATEGORY TOTAL PERCENTAGE Every time 26 12.5 Sometime 89 65.5 Never 35 22 0 20 40 60 80 100 120 140 160 180 Every time Sometime Never Percentage Total
  • 70. To Study: The Influence of Retailers on Customer Buying Decision Q9. Product categories you purchase under the name of retail stores. Mumbai Institute of Management & Research (MIMR) Page | 70 CATEGORY TOTAL PERCENTAGE Grocery 22 20.6 Electrics 6 1.5 Packaged foods 35 30 Snacks & biscuits 30 33.1 Cosmetics 9 2.8 Clothing 19 5.5 Health care 1 0.5 Handlooms 3 1 Vegetables/Fruits 11 2.3 Jewellery 3 1 Stationary 7 1.7
  • 71. To Study: The Influence of Retailers on Customer Buying Decision Analysis: As the graph indicates majority of respondents preferred grocery i.e. 20.6%, on the other hand healthcare (0.5%), handlooms & jwellery (1%) are least preferred. While packaged foods (30%), snacks and biscuits (33.1%), clothing (5.5%) are averagely preferred by the respondents. Mumbai Institute of Management & Research (MIMR) Page | 71 0 10 20 30 40 50 60 70 Percentage Total
  • 72. To Study: The Influence of Retailers on Customer Buying Decision Q10. Choose satisfaction level for the retail stores own labeled products. Analysis: As the graph indicates from about 150 respondents among which 43.5% of the respondents are satisfied with the private labeled products, 23.5% respondents are neutral and 28% of the respondents are highly satisfied. Mumbai Institute of Management & Research (MIMR) Page | 72 CATEGORY TOTAL PERCENTAGE Highly Satisfied 30 28 Satisfied 44 43.5 Neutral 20 23.5 Dissatisfied 6 5 Highly Dissatisfied 0 0 0 10 20 30 40 50 60 70 80 90 100 Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Percentage Total
  • 73. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 73 Chapter 6 Discussion & Implication
  • 74. To Study: The Influence of Retailers on Customer Buying Decision 6.1. Facts & Findings Customer satisfaction research measures just those factors that are connected to the satisfaction, which is wanted to measure with the research. Facts influences mainly by form of research questions, alternatives that are chosen to the questions (e.g. scales) and the question positioning in the survey. “Finding refers to the stability of the measure.” This basically means that, when the customer satisfaction research is repeated, the results are practically similar to the previously implemented research. Majority of customers are influenced by one stop shopping facility, to visit organized retail stores. On the other hand staff courtesy and extra services do not influence much to customers. • Most of the Customers preferred to buy snakes and biscuits, packaged foods and grocery items from organized retail stores. On the other hand jwellery, sports/toys, vegetables/fruits, and handloom items are least preferred by the customers. • There is no strong influence of Advertisements by organized retail stores on customers. • Majority of customers do impulse buying, when they visit retail stores but not every time. • Majority of respondents do not prefer to buy private labeled products, as the data indicates 61.5% of the respondents said “Never” for the preference towards private labeled products. • Majority of customers (Who buys private labeled products) buy Grocery items under private labeled brand. • Majority of users of private labeled products are satisfied. Mumbai Institute of Management & Research (MIMR) Page | 74
  • 75. To Study: The Influence of Retailers on Customer Buying Decision • Customers find Snakes and biscuits as the cheapest products then other products in organized retail stores. Mumbai Institute of Management & Research (MIMR) Page | 75
  • 76. To Study: The Influence of Retailers on Customer Buying Decision • There is no influence of Age, Gender and Income of the respondents on his/her preference for purchasing private labeled products. • There is an influence of Occupation of the respondents on his/her preference for purchasing private labeled products. • Through Factor Analysis among 12 variables 11 variables can be clubbed into 4 variables. • Most of the stores are targeting almost all the segments of the society with their USP being “Price benefit” • All the branded stores are in Prime Location. • Large variety of products is available ranging from clothes, food items, electronic goods etc. • Staff is provided constant training for various peculiarities of customer behavior. • Some of them offer discount sales and also send greetings to its loyal customers. • Not much difference in the Layout of the floor designs in the various branches. They try to maintain a similarity to maintain comfort levels of customers. • These stores maintain Word of Mouth. Mumbai Institute of Management & Research (MIMR) Page | 76
  • 77. To Study: The Influence of Retailers on Customer Buying Decision • Customers are satisfied with the provided services. • Local retailers stores focuses high on the margin earned then that of the customer satisfaction & customer benefits. Mumbai Institute of Management & Research (MIMR) Page | 77
  • 78. To Study: The Influence of Retailers on Customer Buying Decision 6.2. Framework for Customer Satisfaction Mumbai Institute of Management & Research (MIMR) Page | 78
  • 79. To Study: The Influence of Retailers on Customer Buying Decision Discussion & Implication Key Learning Points Facts & Findings • Customers preferred unorganized market, no strong influence, Word of Mouth; Local retailer’s stores focuses high on the margin, Customers are more loyal to the retailer than the brand. Framework for Customer Satisfaction • Elements Dimensions Customer Satisfaction Mumbai Institute of Management & Research (MIMR) Page | 79
  • 80. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 80 Chapter 7 Limitation & Suggestions
  • 81. To Study: The Influence of Retailers on Customer Buying Decision 7.1. Limitation “Once we accept our limits, we go beyond them.” - Albert Einstein The limitations of the study are those characteristics of design or methodology that impacted or influenced the application or interpretation of the results of your study. They are the constraints on generalize and utility of findings that are the result of the ways in which you chose to design the study and/or the method used to establish internal and external validity. There were certain limitations of this study that are enlisted below; • Resources of the researcher, as the retailers are spread all over the country; a large amount of financial resources is required. • Geographical expansion of target population, as we know that the retailers are located throughout the area. • Time of submission, due to academic schedule the researcher had the limited time frame to complete this research. • The findings of the current study were applicable only to the retailers (Super markets) • The target population was the customers of super markets so the findings could not be generalized to the customers of SMEs • The retailers must understand the skills & qualities required to understand & satisfy the need & requirement of the customers. Mumbai Institute of Management & Research (MIMR) Page | 81
  • 82. To Study: The Influence of Retailers on Customer Buying Decision In this field, for the further research with a little modification this questionnaire can be applied to customers of SMEs. A comparison of the customer satisfaction of both Super markets and SMEs can be done. Customer satisfaction can related to the profitability through customer loyalty and customer retention. Mumbai Institute of Management & Research (MIMR) Page | 82
  • 83. To Study: The Influence of Retailers on Customer Buying Decision 7.2. Suggestions / Recommendation “Recommendation is an advice proposal for an appropriate course of action” • Convert the customers into publicity agents. Develop an incentive for them to tell associates and friends about the value of your products or services. An endorsement from them is more effective than any amount of advertising - and it is much cheaper. • Surprise the customers with unexpected value. If you sell products, include an "unadvertised bonus" with every order. If you sell services, get into the habit of doing something extra for every customer or client without charging for it. • Reward them each time they refer someone who becomes a customer. Your reward can be as simple as a credit toward their next order from you. • The retailer must improve their understanding of the role and capabilities of advertising to improve customer relation and enhance loyalty. This understanding should in turn results in a more effective and more efficient advertising campaign & customer satisfying services. • Visual Merchandising: It is often seen that the people come to the store to browse rather than buy. • Schemes: In store Promotions: The people visiting the store should be encouraged to visit the store again and again. So it is necessary to Mumbai Institute of Management & Research (MIMR) Page | 83
  • 84. To Study: The Influence of Retailers on Customer Buying Decision delight the shoppers with the shopping experience. It has been observed in Mumbai Institute of Management & Research (MIMR) Page | 84
  • 85. To Study: The Influence of Retailers on Customer Buying Decision Limitation & Suggestion Key Learning Points Limitation • Resources, Geographical , Time Of Submission, The Skills & Qualities Required Suggestions / Recommendation • Word of Mouth, unexpected value, Reward , Understanding their role and capabilities, Visual Merchandising, Promotions Mumbai Institute of Management & Research (MIMR) Page | 85
  • 86. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 86 Conclusion
  • 87. To Study: The Influence of Retailers on Customer Buying Decision Conclusion "The secret of successful retailing is to give your customers what they want. And really, if you think about it from the point of view of the 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 The retail sector has played a phenomenal role throughout the world in increasing productivity of consumer goods and services. Customers would like to have personal contact with a sales person & the nearby retail shop. On the basis of data gathered and analysis done we can conclude that; • Customers prefer to purchase day to day products from organized retail stores. • The basic purchase has more influence of the retailer than that of the advertisements on customers. • Majority of the respondents are doing impulse buying. • People prefer to purchase private labeled products “One stops shopping” is the highly influencing factor to the customers of organized retailing stores, for doing shopping from those stores. Mumbai Institute of Management & Research (MIMR) Page | 87
  • 88. To Study: The Influence of Retailers on Customer Buying Decision Thus as per the research our Alternative Hypotheses (Ha) is accepted i.e. the retailer have significant impact on the buying decision of the customers & Null Hypotheses (Ho) is rejected. Mumbai Institute of Management & Research (MIMR) Page | 88
  • 89. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 89 Bibliography & Annexure
  • 90. To Study: The Influence of Retailers on Customer Buying Decision Bibliography Web Links • http://en.wikipedia.org/wiki/Retailing_in_India • http://www.fibre2fashion.com/industry-article • http://www.e4india.com • http://www.slideshare.net Book • Principles of Marketing (14th Edition); Philip Kotler, Gary Armstrong Magazines • 4Ps Business and Marketing: www.4psbusinessandmarketing.com Mumbai Institute of Management & Research (MIMR) Page | 90
  • 91. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 91
  • 92. To Study: The Influence of Retailers on Customer Buying Decision Annexure Name: __________________________________________________________ ________ Age: _____________________________________ Sex: Female / Male Occupation: __________________________________________________________ ____ Q1. How frequently do you visit the retail stores? Q2. Choose from the following for which you visit the retail stores? Q3. What are the factors which influence you to visit the retail stores? Q4. Show your preference level from purchasing the following product category from the retail stores. Mumbai Institute of Management & Research (MIMR) Page | 92 a) Frequently b) Weekly c) Fortnightly d) Monthly a) Shopping b) Price c) Entertainment d) Time pass a) Ambience b) One stop c) New product d) Extra service e) Product variety f) Price
  • 93. To Study: The Influence of Retailers on Customer Buying Decision Q5. Does advertisement influence you to visit the retail store? Q6. Do you purchase the product which you have not planned before visiting the retail stores? Q7. Choose from the product category which you find cheaper in the retail stores. Q8. Do you buy the products which are sold at retail store under their own brand? Q9. From the following give preference to the product categories you purchase under the name of retail stores. Mumbai Institute of Management & Research (MIMR) Page | 93 a) Grocery b) Electrics c) Packaged foods d) Snacks & biscuits e) Cosmetics f) Clothing g) Health care h) Handlooms i) Vegetables/Fruits j) Jewellery k) Stationary a) Every time b) Sometime c) Never a) Every time b) Sometime c) Never a) Grocery b) Electrics c) Packaged foods d) Snacks & biscuits e) Cosmetics f) Clothing g) Health care h) Handlooms i) Vegetables/Fruits j) Jewellery k) Stationary a) Every time b) Sometime c) Never
  • 94. To Study: The Influence of Retailers on Customer Buying Decision Q10. Choose satisfaction level for the retail stores own labeled products. Mumbai Institute of Management & Research (MIMR) Page | 94 a) Grocery b) Electrics c) Packaged foods d) Snacks & biscuits e) Cosmetics f) Clothing g) Health care h) Handlooms i) Vegetables/Fruits j) Jewellery k) Stationary a) Highly Satisfied b) Satisfied c) Neutral d) Dissatisfied e) Highly Dissatisfied
  • 95. To Study: The Influence of Retailers on Customer Buying Decision Mumbai Institute of Management & Research (MIMR) Page | 95