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Study on changing consumer preference towards organized
retailing from un-organized retailing.
In partial fulfillment for the award of the degree
MASTER IN BUSINESS ADMINISTRATION
RETAILING AND SUPPLY CHAIN MANAGEMENT
B.N.BAHADUR INSTITUTE OF MANAGEMENT
MANASAGANGOTHRI, MYSORE -570006
DINESH NARAYAN HEGDE
The present situation of the market depends upon the retailing sectors. The day
to day activities are carried out by the only means of the retailing sectors. The material
consumptions as per the customers’ expectations. Introduction of Indian Retail
IndustriesRetail is India’s largest industry, accounting for over 10 per cent of
thecountry’s GDP and around eight per cent of the employment. Retail industryin
India is at the crossroads. It has emerged as one of the most dynamic andfast paced
industries with several players entering the market. But because ofthe heavy initial
investments required, break-even is difficult to achieve andmany of these players have
not tasted success so far.
Retailing inIndia is gradually inching its way toward becoming the next boom
industry.The whole concept of shopping has altered in terms of format and
consumerbuying behavior and pattern of shopping in India. Modern retailhas entered
India as multi-storied malls and huge complexes offershopping, entertainment and
food all under one roof. The Indian retailingsector is at an inflexion point where the
growth of organized retailing andgrowth in the consumption by the Indian population
is going to take a highergrowth trajectory.The Indian population is witnessing a
significant change in its demographics.A large young working population with median
age of 24 years, nuclearfamilies in urban areas, along with increasing working-women
populationand emerging opportunities in the services sector are going to be the
keygrowth drivers of the organized retail sector in India.
1. Negligence of the retailers in the market
2. Sales and payment options
3. Managing and leadership activities
4. Economic factors
5. Establish new shops and existing one
6. Reaction to the customers
7. Employee turnovers in the modern retailing
8. Low level of technology
9. Purchasing pattern of consumable products.
In India the retail industries has undergone a rapid growth in the organized
sector since the year2000. The organized sales volume in 2004-05 had just about 2%
share of total retail sales. In present competitive scenario it’s very important to
compete with the competitor’s and sustain ahead, all companies are analyzing doing
research to know and to understand the buying behavior of the consumer and the same.
The share of retail trade in the country’s gross domestic product (GDP) was 22% in
the year 2010.
The dual objective of the present study is to examine the interrelationship
between various Retail Service Quality dimensions, which will help the retailers to
identify the steps needed to improve the overall quality of service. Hence, to have
methodological improvement in the present study by plugging out the loop holes of the
earlier studies, the studies pertaining to Retail Service Quality has been reviewed. In
the present chapter it is attempted to provide a brief sketch on the earlier studies
carried out in the area of retail service quality performance.
Customers are satisfied, when value meets or exceeds expectations. If their
expectations of value are not met, there is no chance of satisfying them. Figuring out
what the customers want, however, is a difficult and complex process. To be able to
create and deliver customer value is important to understand its components. On the
most basic level, value from a customer’s perspective is the ratio of benefits to the
risks being taken while buying the product.
NEED FOR THE STUDY
Customer is one for whom you satisfy a want or need in return for some of
payment. The payment may be money, may be time, or may be goodwill but there is
some form of payment. Satisfaction is the level of person felt state by comparing
products perceived in relation to the person’s expectations.Satisfaction level is
function of the differences between perceived performance and expectations. If the
performance falls short of expectation, the customer is not satisfied. If the performance
matches the expectations the customers are highly satisfied. If the performance is
beyond his expectation the customer is thrilled.
Customer satisfaction is customer’s positive or negative feeling about the value
that was perceived as a result of using particular organization’s offering in specific
used reaction to a series of use situation experience. According to P.F. Ducker, the
purpose of business is to create and retain a satisfied customer. A society supports
business because they serve its member’s by catering to their needs and leave them
satisfied. If the business dissatisfied its customer’s and not only these customer stop
availing service, but society at large will condemn the firm and may even penalize it to
the point of its extinction.
SCOPE OF THE STUDY
Retailing is the final step in the distribution of merchandise - the last link in the
Supply Chain - connecting the bulk producers of commodities to the final consumers.
A retailer, typically, is someone who does not affect any significant change in the
product execs breaking the bulk. He/ She are also the final stock point who makes
products or services available to the consumer wheneverHence, the value proposition a
retailer offers to a consumer is easy availabilities of the desired product in the desired
sizes at the desired times. In the developed countries, the retail industry has developed
into a full-fledged industry where more than three-fourths of the total retail trade is
done by the organized sector.
Large retail formats, with high quality ambiance and courteous. Retailing is the
interface between the producer and the individual consumer buying for personal
consumption. Retailing is a well-recognized business function which compromises
making available desired product in the desired quantity at the desired time. This
creates a time, place and form utility for the consumer. The success of retailing is
highly dependent on an efficient supply chain management. Retail Sector can be
divided into organized and unorganized sectors: Unorganized Retail: Unorganized
retailing is characterized by a distorted real-estate market, poor infrastructure and
inefficient upstream processes, lack of modern inadequate funding and absence of
skilled manpower. Unorganized Retail: Unorganized retailing is characterized by a
distorted real-estate market, poor infrastructure and inefficient upstream processes,
lack of modern technology, inadequate funding and absence of skilled manpower.
To identify the factor thatinfluence the customersatisfaction.
To examine the changes in the behavior of the customer towards retailing
To evaluate the benefits of the retailing sector.
To discover whether the market fulfills the satisfaction level from the
unorganized to organized retailing?
To study the benefits of organized from unorganized retail market
To identify the demographic profile of the customers visiting organized retail
outlets and unorganized retail outlets
To analyze the factors which influence consumers to prefer organized retailing
over unorganized retailing and vice-versa
To identify the problems faced by consumers from organized as well as
unorganized retail outlets.
LIMITATIONS OF THE STUDY
The survey has been confined to Mysore city, and other part of the Mysore
District were not have any organized outlet.
The sample size was restricted to 10 which is comparatively very less as
compared to the entire population of the city.
Few respondents were unwilling to give an accurate response to certain
questions and have replied as per their own perception and experience thereby
the possibility of personal bias cannot be ruled out completely.
The study is based on following assumption:
There are a lot of factors that influence customer satisfaction.
After sales services of the bikes of Hero Moto Corp. is good.
The data is collected through the questionnaire by using a random sample of
consumers. Consumers who have significant knowledge of the topic were identified
and selected a random sample for questioning. Interview were conducted face to face
to know the attitude and experience of consumers who had purchase grocery items
from organized and unorganized retail outlets. The sample size is small due to the
constraints on time, manpower and costs. The sample size is 50.
Indian Retail Industry
The Indian retail market is the fifth largest retail destination globally. Modern retail is
increasing its share in the total retail market to 22% in 2010. India has one of the
largest numbers of outlets in the world. Of the 12 million retail outlets present in the
country, nearly 5 million sell food and related products. Though the market has been
dominated by unorganized players, the entry of domestic and international organized
players is set to change the scenario. Around 7% of the population in India is engaged
in retailing. In India the retail sector is divided in two broad sectors Unorganized
Retailing and Organized Retailing.
Unorganized Retailing, refers to the traditional formats of low-cost retailing, for
example the local kirana shops, owner manned general stores, pan/beedi shops,
convenience stores etc. Indian retail is dominated by a large number of small retailers
consisting of the local kirana shops, owner-manned general stores, chemists, footwear
shops, apparel shops, pan and beedi shops, and hand-cart hawkers etc. which together
make up the so called “unorganized retail” or traditional retail.
Unorganized Retailing refers to trading activities undertaken by licensed retailers, that
is, those who are registered for sales tax, income tax, etc. These include the corporatebacked hypermarkets and retail chains, and also the privately owned large retail
Time Period of study: the study was conducted in the organized retail outlets and
unorganized retail outlets during the months of August- October 2013 at Mysore
Statistical Tools Applied: Data collected through survey and interview was analyzed
and presented in master table and required sub tables were prepared. For analyzing the
data statistical tools like weighted average and percentage method were adopted to
find out the customer preferences about various attributes and the dependency between
the two variables were worked out and presented in the results.
The study is basically based on both primary and secondary data. The primarydata has
been collected through questionnaire and several structured andunstructured
interviews were also conducted to elicit fast hand information withthe theme of the
research work. However, secondary data is collected fromvarious sources like
journals, books, manuals, and reports of the state concernedfor literature part. Data
collected both from primary and secondary sources havebeen interpreted with the help
of statistical devices. The study was conducted inMysore during the period from 20132014, actually focusing on growthof retailing industries in small towns.
Primary data can be collected by Questionnaire andPersonal interviews with the
Internet and existing literature of different organization can be a source of secondary
data. The surveys previously carried out in this respect can also be a source of