Literature review 1


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Literature review 1

  1. 1. 1 .ABSTRACT:- The retail sector is expanding and modernizing rapidly in line with India’s economic growth. It offers significant employment opportunities in all urban areas. Unorganized retailers in the vicinity of organized retailers experienced a decline in their volume of business and profit in the initial years after the entry of large organized retailers. The adverse impact on sales and profit weakens over time. There was no evidence of a decline in overall employment in the unorganized sector as a result of the entry of organized retailers. The rate of closure of unorganized retail shops in gross terms is found to be 4.2 per cent per annum which is much lower than the international rate of closure of small businesses. The rate of closure on account of competition from organized retail is lower still at 1.7 per cent per annum. There is competitive response from traditional retailers through improved business practices and technology up gradation. A majority of unorganized retailers is keen to stay in the business and compete, while also wanting the next generation to continue likewise. Small retailers have been extending more credit to attract and retain customers. 2. LITERATURE REVIEW:-According to Cherish Mathew (2009), “Aggressive expansion by organized retailing has, in turn, promoted certain political, legal and social issues, raising apprehensions about the future of traditional/unorganized retailing. When compared with the unorganized sector, organized retailing is expected to provide several benefits to the customers as well as suppliers and would contribute signification to the nation’s economic development in the long run. The retail structure in India expected to settle at a new equilibrium, accommodating both the organized and unorganized retailer. As the government’s intervention in the retail business is
  2. 2. likely to reduce in future, customer preferences and market forces will determine the eventual outcome. The overall attitude likely to change favorably. 2.ABSTRACT:- Retailing in India came with evolutionary patterns from Kirana store to super market. This sector was un-organized in the initial stage, and after that it is carried forward and now it is growing as supermarket and hypermarket. The paper will depict the main drivers of the retail revolution in India and how this revolution changes the buying behavior of the customer, increase in disposable income of the middle class, infrastructure development and changing customer choice. Organized Retailing is introduced in the last decade and has emerged as one of the sunrise industries in India. The paper will mention the impact of organized retailing on unorganized sector. The study will indicate how the consumer will be benefited from organized retailers. The survey intends to analyze the consumer behavior towards organized and unorganized retailing, their source of purchasing and the factors which influences their mall purchasing in India. 2.LITERATURE REVIEW:- The retail industry in India has undergone a rapid growth in the organized sector since the year 2000. The organized retail sales volume in 2004-2005 had just about 2% share of the total retail sale. In present competitive scenario it’s very important to compete with the competitors and sustain ahead, all companies are analyzing and doing research to know and understand the consumer buying behavior for the same. The share of retail trade in the country’s gross domestic product (GDP) was 22% in the year 2010.
  3. 3. 3.ABSTRACT:- Present paper is a part of the doctoral research study entitled “Trends in Retail Practices and Their Impact on Traditional Retailing-Special Reference to Bhopal City”. The paper discusses variousstudies undertaken with respect to retailing in India. Aspects like trends, consumer perception, consumer behavior, service quality, customer satisfaction, Indian retail market etc. are included in the paper. Various studies done by other researchers and experts are analyzed to include common aspects of organized Vs traditional retailing. It is basically aimed at to prepare a summarized report on the study of related literature regarding the topic. undertaken with the common aspects of retailing in India. It is hoped that the paper may act as a reference source for the researchers and the professionals. 3.LITERATURE REVIEW:- Parasuraman et al. (1980s) conducted an exploratory investigation in the attempt to define service quality and develop a model of service quality. The results showed that regardless of the type of service, consumers used basically the similar criteria in evaluating service quality (Parasuraman et al., 1985). They labeled those 10 criteria as “service quality determinants”. Since then, service quality was defined through 10 dimensions: Access, Communication, Competence, Courtesy, Credibility, Reliability, Responsibility, security, Tangibles and Understanding/ Knowing the customer. Later, they were simplified into five dimensions including Tangibles, Reliability, Responsiveness, Assurance and Empathy.Dawar & Parkar (1994): Retailer’s reputation is a proxy for the retailer’s credibility and can stand for signal of quality. The use of retailer’s reputation is specific when it applies to an assortment of products carried within the store. Dabholkar et al. (1996) developed Retail Service Quality Model (RSQS). Based on SERVPERF, RSQS includes 28 –item scale, of which 17 items are from
  4. 4. SERVPERF and 11 items are developed by qualitative research. It composes of 5 dimensions, namely Physical Aspects, Reliability, Personal Interaction, Problem Solving; and Policy. Sinha & Batra (1999) also find the relationship between price consciousness and private label brand purchase to be positive but also document that it can vary by different product categories. Shah (2001) reported that imagine the Kerala is the home to the largest organized retail chain in the country, there is margin free market (MFM), a 160 store chain selling almost everything from electronic and electrical appliances to food products, beverages, FMCG’s, stationary and goods. Das (2000) revealed that the Indian situation is rather paradoxical. At $180 billion, the Indian retail business contributes 10- 12% of the GDP higher than the some western economies, where it averages 8%. It revealed that India have the world’s thickest density of outlets at 5.5% for every 1000 people between 12million retail stores, India’s per capita retail space is dismissal 2 sq ft per person. Johnson (2000) reported that real estate is an issue in India, also labor is cheap, so getting products delivered home is a whole lot easier and he supposes the internet will facilitate such shopping. India could actually leapfrog the west where we will probably have drive through shopping malls. In India, your friendly local guy will deliver the other opportunity is convenience stores to do things that families do not have the time for, if both husband and wife are working. Poviah and Shirali (2001) were of the viewpoint that shopping malls are classic self service 4000- 20000 sq ft. stores with shopping carts, as popularized in India by crazy boys film, with typical focus on regular groceries, household goods and personal care products. Tesco and Nilgiris. India is namely a groceries market and here, shopping malls have not been able to eat into the business of kriyana shops. While the housewife might pick up her shampoo at a shopping mall, she continues to
  5. 5. use her local cart pusher for daily needs such as fresh vegetables. In fact, so far organized Indian _ _ retailing has enveloped only the middle section (self esteem, social recognition) of Maslow’s pyramid. Purohit & Srivastava (2001): The retailer’s reputation is a high-scope cue for consumer to judge the product quality and make purchase decision. Their findings show that a low-quality brand cannot convey improvement in product quality through a warranty unless it goes through a reputable retailer. Chandrasekhar Priya (2004) selected 10 particularly ripe areas which should be hot markets for at least the next several years. These comprised of China, Hong Kong, Taiwan, India etc. Shekhar M. Raj (2005) in a study found that whether the hegemony of high streets over Indian retail can continue. Glitzy malls are coming up by dozen all over the county. With their snazzy interiors, an offering that is a mix of shopping, entertainment and leisure, and facilities like packing and childcare, the malls are beginning to pull the traffic from the traditional markets. Today we are much more comfortable with the quality the brands are connote than the word of a shopkeeper about the quality of product. More families now prefer to shop on weekends, preferably not too far from the home and away from mdden crowds and even more madding parking attendants. So it is showing that now Indian consumer is ready for organized retail. As the most likely time for shopping is the weekends so the families also look for some entertainment, eating courts and recreational activities. To fulfill all these needs we have the latest form of shopping malls where all these needs of average customer can be taken care of. Subhashini Kaul (2005) concluded that consumers satisfied with the store’s service quality are most likely to remain loyal. Service quality is being increasingly perceived as a tool to increase value for the
  6. 6. consumer, as a means of positioning in a competitive environment to ensure consumer satisfaction, retention and patronage. Despite its strategic importance, Indian retailers did not have an appropriate instrument to measure service quality. This study examined the Retail Service Quality Scale (RSQS) developed in the U.S for applicability to Indian retail and the scale had been found appropriate. Rao(2006) also states that security, trust, internet speed, responsiveness significantly affect online purchaser’s behavior. Thirumoorthi, P. (2006) concluded that the company must concentrate more on high margin to create a better performance. Importance must be given to sales promotion. The retailers must also be asked to give more displays and discounts. Tamilarasan, R. (2007) studied in depth the variety of store dimensions and service quality dimensions and revealed that all these dimensions have to be of the changing and emerging retail scenario in India. 4.ABSTRACT:- Purpose of this study is to check the effect of opening of the organized retail stores on the unorganized retail, farmers and consumer. Another objective of my study is to find that how much the economy of Punjab, affected by growing of retail sector. The study revealed the changing patterns of the Indian retail industry with special reference to Punjab as well as understands the impact of organized retail on the consumption or shopping habits of the consumer in the state of Punjab The scope of the study is for new retailer, who wants to invest in retail sector. This study tells them, what the growth rate of retail sector is and what is the perception of the consumer towards the retail store. This study helps to government, as from this study govt. know the growth of retail sector and encourage the investment in this sector, which helps in economic growth. The data is collected through the help of questioner filled from
  7. 7. retailers as well as customers. The statistical tools i.e. mean median, std. deviation, regression, kurtosis, skewness used for the evaluation purpose. The study revealed that the Punjab retail sector is changing now many retail investor open their retail store and running successfully and some other big players are ready to invest in the retail sector in Punjab and the future of organized retail is quite good in big cities but in the cities cognized retail not successful to gain moment. 4.LITERATURE REVIEW:- (CAIT 2007), (Deloitte- Stores Report, 2007), (Reardon and Hopkins, 2006; Reardon and Berdegue, 2007) examine the internationalization of retail sector. Global Retail Development Index (2005, 2006, and 2007) studied the ranking of the countries in retail business. (Mutebi, 2007) evaluates the retail sector in Southeast Asia (Malaysia, Indonesia, and Thailand). (ICICI Property Services-Technopak Advisers Pvt. Ltd., 2007) reports shows the growth of retail in the Indian context.(Hu et al. 2004) examine the Chinese retail sector. Reardon et al. (2003) studied the demand side factors as well the policies impact on retail. (NRFSTE, 2008) report deals with the Indian small retail sectors. (KPMG2009) report studies the growth of indian retail sector. (outlook2008) report shows the impact of multi brand retailing India. (CAIT 2007) report reveals the impact of big giants of retail on the small retailers. (Deloitte- Stores Report, 2007). Reports reveals that there has been a creeping internationalization of retailing over the recent period. As home markets have become crowded and with opportunities in emerging markets rising, modern retailers from developed countries have been turning to new markets. On an average each of the top 250 retailers in the world have operated on an average in 5.9 countries in 2005-06 (July-June) against five countries in 2000-01. (Reardon
  8. 8. and Hopkins, 2006; Reardon and Berdegue, 2007) evaluates that the arrival of modern retail in developing countries occurred in three successive waves The first wave took place in the early to mid-1990s in South America (e.g., Argentina, Brazil, and Chile), East Asia outside China (South Korea, Malaysia, Philippines, Thailand, and Taiwan), North-Central Europe (e.g., Poland, Hungary, and Czech Republic) and South Africa. The second wave happened during the mid to late 1990s in Mexico, Central America (e.g., Ecuador, Colombia, and Guatemala), Southeast Asian countries (e.g., Indonesia), Southern-Central Europe (e.g., Bulgaria). The third wave has just begun in the late 1990s and early 2000s in parts of Africa (e.g., Kenya), some countries in Central and South America (e.g., Nicaragua, Peru, and Bolivia), Southeast Asia (e.g., Vietnam), China, India, and Russia. The international consulting firm, A.T. Kearney, annually ranks emerging market economies based on more than 25 macroeconomic and retail-specific variables through their Global Retail Development Index (GRDI). For the last three years (2005, 2006, and 2007) India has been ranked as number one indicating that the country is the most attractive market for global retailers to enter. The high economic growth during the last few years raising disposable incomes rapidly, favourable demographics placing incomes on younger population with less dependency, and urbanization are some of the major factors fueling the Indian retail market. (Mutebi, 2007). Examine that countries in Southeast Asia (Malaysia, Indonesia, and Thailand) imposed a number of restrictions on the growth of large retail companies particularly the transnational companies in contrast to a fairly liberal approach to the retail sector followed until the late 1990s. These restrictions involve the use of a combination of competition laws, FDI regulation, land use restrictions (zoning laws), and limits on operating hours. (ICICI Property Services-Technopak Advisers Pvt. Ltd., 2007) report conclude that the growth in
  9. 9. organized retailing in recent years can also be gauged by the rise of shopping malls as well as the rising number of modern retail formats. In 1999, India had just three shopping malls measuring less than one million sq. ft. By the end of 2006, the country had 137 shopping malls equivalent to 28 million sq. ft. The pace of construction of shopping malls is progressing rapidly and the number of malls is expected to be about 479 by the end of 2008 with a capacity of 126 million sq. ft. (Hu et al. 2004). Find that China ranked fourth, fifth, and third in the AT Kearney Global Retail Development Index in 2005, 2006, and 2007, respectively, and is a fascinating case of extremely rapid supermarket diffusion. Modern retail in China comprises roughly 10 per cent of the national retail and 30 per cent of urban food markets. 5.ABSTRACT:- Retailers pursue different kinds of strategies to attract customers towards their outlets. But, only some retailers can be successful in having a strong pull for its customers. The present study aims at identifying the factors responsible in contributing to the better performance of some pharmacy stores, especially the unorganized pharmacy stores. The variables chosen for the study are the outcome of an initial pilot study, where the customers were asked open ended questions to gather reasons for their patronage towards the pharmacy stores. These variables have been subjected to factor analysis and the resultant factors have been termed as the strategies adopted by the successful pharmacy stores. The results show that there are seven major strategies adopted by the successful pharmacy retailers.
  10. 10. 5.LITERATURE REVIEW:- The Indian retail sector is highly fragmented, consisting predominantly of small, independent, owner-managed shops. The unorganised sector has not lost its glory due to entry of organised sector. It has rather gained in terms of business as the overall retail economy is growing. It has also gained in terms of its quality enhancement due to competition given by organised sector. Small retailers have adopted the policy of extending more credit to customers to attract and retain customers. They have become competitive by adopting improved business practices & technology up-gradation (Joseph, Soundararajan, Gupta, & Sahu, 2008). Today's world is filled with savvy consumers. Their remarkable blend of excitement and skepticism leaves many business owners wondering. It takes more than great products to keep the customers coming back. Shop keepers must consider what they can do to differentiate their business from all the others that offer the same services or products. The differentiator must be the level of service, the unique experience that is offered to customers. This holds true even for critical product categories like medicines. Customers can get the required product (desired drug) from several stores, but even then they mostly prefer patronizing the same medical store from where they usually purchase. It was found that a majority of customers mostly preferred to buy medicines always from the same medical store vis-à-vis patronizing a variety of stores and
  11. 11. they tend to re-patronize medical stores that are situated at 0 to 3 km from their residence or workplace, reflecting that locational convenience plays a significant role in determining preference for and re-patronage of a medical store (Tripathi, 2009). The study also examined the importance of familiarity (with a store) in rationalizing buyer behaviour with reference to medicines. The respondents had accorded the highest priority to the personal relationship that they enjoyed with the store manager and the pleasant behaviour displayed by him in determining patronage of a medical store. In case of specialized, sensitive products like medicines, reliability of the store will play a major role in determining customer loyalty and re-patronage. If the store wants to be successful, it must build a truly sincere brand, with the objective of creating long-term mutually beneficial relationships with its customers. (Tripathi). , 2009). 6.ABSTRACT:- The Indian retail industry is the fifth largest in the world. With a population of 108 billion and growing at 1.6% p. a, the retail sector in India has a huge growth potential to become one of the leading retail markets of the world. With a young demographic profile, increasing consumer aspirations and advent of dual income families, the retail landscape is undergoing a level of transformation. The sector which was initially dominated by highly decentralized unorganized retailers, with the demographic and psychographic changes, is becoming centralized and organized as well. Food dominates the shopping basket in India, accounting for
  12. 12. almost 76% of the spending; while it is only 9.7% in the U.S and 15% in Japan and UK. Out of the total 76%, only 1% of this market is in the organized sector and the remaining is in the unorganized sector. This research study aims at finding out the customer preferences towards the organized and unorganized with special reference to fresh groceries. An attempt has been made to identify factors that influence customer preferences towards the organized and the unorganized retailers. A Z-test is used to test the preference, if any of the customer towards the organized sector. The findings of the study do note a change in customer preferences while shopping for fresh groceries between the unorganized or organized retail outlets on factors such as cleanliness, home delivery, credit facilities, display, etc. However, one of the interesting finding of this study is that the customer is indifferent on his preference between the two sectors on the level of prices. The findings of this study may provide useful insights to researchers for further research and to retailers of both the organized and unorganized sectors on how to overhaul their business in order to achieve coexistence. 6.LITERATURE REVIEW:- The discussion on whether the unorganized retailers will be ousted by the organized retailers has been in public domain for the last few years. A number of studies have been carried out in this area. With the opening up of FDI in multi-brand retailing, there is a definite need to understand the status of the unorganized retailers over the organized retailers, especially when big foreign retailers like Wal-Mart, Tesco and Carrefour are waiting to enter the retail scene in India. The organized and the unorganized retail would certainly coexist. The multiple needs and utility functions among the socio-economic classes would ensure both the organized and the unorganized to coexist primarily in the food sector [1]. However, another study states that organized and unorganized are bound not only to coexist but also achieve rapid and sustained growth in years to come [2]. The unorganized retailers
  13. 13. do well on the location or the placement; however they suffer on the aspects such as cleanliness, quality of goods, offers made and of course helpful trustworthy sales personnel. The converse is true for the organized retailers [3]. The arrival of the big retailers has had an impact on small grocers, but the neighborhood stores still show growing sales, although at a much lower rate than the modern trade [4]. The traditional retailers need to work out a strategy to retain their customers by providing quality goods and services; and they should also go for collaborations at the regional level, then only they can survive to win in this globally competitive environment [5]. The organized retailers are developing deeper insights into customer needs and are developing innovative models that are more tailored and personalized experience for their customers, thus working towards customer- centric shopping experience. Greater the differentiation is among competitors, greater the success. 7.ABSTRACT:- The Indian retail industry has grown 10.6% between 2010 and 2012 and is poised to increase to 750 to 850 billion USD by 2015. Retail industry is a flourishing sector of the country and encompasses activities from sourcing, SCM ,Inventory management, merchandise management, store management, HRM, ERM, ERP, sales promotion, advertisement, CRM and after-sales service. The organized retail constitutes 8% of the total retail market and is expected to grow at 20% by 2020. It is likely to greatly impact businessmen, entrepreneurs, investors and to a great extent the real estate sector. There is great hue and cry that FDI will to a great extent make the small retailers shut the business and opt for alternate employment. The paper focuses on the impact of organized retail on the unorganized sector in Indian retail market. 7.LITERATURE REVIEW:- According to Delloitte Report Jan 2013- Indian Retail Report Opening more doors, the Indian retail industry has grown 10.6% between 2010 and 2012 and
  14. 14. organized retail constitutes 8% of the total retail industry with 92% constituting the unorganized retail. The Indian retail is divided into 2 categories- organized and unorganized retail. Organized retail refers to trading activities by licensed retailers , who are registered for sales tax, income tax and includes retail chains and large privately owned retail businesses. On the other hand, unorganized retail constitutes the traditional formats of low cost retailing, convenience stores , hardware shop at the corner of the street selling everything from bathroom fittings to paints and small construction tools , mom and pop shops, local kirana shops, pan and beedi shops, hand cart and pavement vendors and street hawkers. 8.ABSTRACT:- The present research is taken up to study the consumers’ experience and perception in organized and unorganized retail settings while buying fresh produce in 7P’s Framework in Bangalore.. Most of the respondents rate their experience to be excellent or very good particularly with respect to product range, quality and freshness of goods at organized retail outlets. However on the parameters of product freshness, availability of seasonal fruits and handling returns and exchanges, unorganized traders score better. Some respondents feel that the grievance redressal procedures and systems are not quite customer friendly, and need to be redesigned in the larger formats. Majority of the respondents agree or strongly agree to the statements that FDI in retail is very much useful to the consumers and the economy, expansion of organized retail provide better services to the consumers, and it could affect cultivation practices of firms as well, large retail firms operate with greater efficiency, and they encourage wasteful spending. Timely market information, entrepreneurial drive and business acumen will ensure success of all stakeholders in the fray, and it turns out to be a positive sum game in the ever growing market rather than zero sum game as it is apprehended. 8.LITERATURE REVIEW:- Amita Shah (2011) opine that the supporters of liberalisation often argue that if the modern food retail sector is allowed a full round of liberalisation, it may have various positive outcomes, including a reduction in prices. He raises a counter question, what if the markets, as it happens in several instances, fail to deliver on account of the structural snags that may continue to persist in a rapidly growing and yet highly segmented economy? Dhruv Grewal et al, (2009) contend that survival in today's economic climate and competitive retail environment requires more than just low prices and innovative
  15. 15. products. To compete effectively, businesses must focus on the customer's shopping experience. Dwelling on the issue, G. Suresh, Dr. S. Krishna Murthy (2012) found that the horticulture development has increased employment and foreign exchange earnings Manju Malik (2012), attempts to determine the perception of service quality of organized retail stores and their satisfaction among 500 respondents from organized retail outlets selected from Haryana, and across various dimensions such as Product aspects, Price aspect, Physical aspect, Promotional schemes, and Personnel Interaction and After Sales Services. Across the sub-dimensions of service quality of organized retail stores, the respondents' level of perception and satisfaction in terms of Product aspects, Price aspect, Physical aspect, Promotional schemes, Personnel Interaction and after sales services was "good”. Nityanand Singh and Prachee Javadekar (2011) observe that the supply-chain management of perishable food products is a very typical issue, which is to be adequately managed to gain the competitive advantage for optimum profit in the current scenario. Kamaladevi B (2010) contends that increased FDI inflows to a country can create several economic effects. Among others, FDI can affect labour and capital markets, trade patterns and economic growth. Ruchi Malik (2012) found that though there are multitudinous opportunities that are untapped by the retailers, they can be successful by paying more attention towards their customer needs and desires. Shankar Gopalakrishnan and Priya Sreenivasa, (2009) cautions that rather than being a panacea for Indian agriculture, corporate food provision will likely accelerate many key elements of India’s agricultural crisis. It will produce a decline in land productivity, reduce food security, adversely affect price stability and will tend to negatively impact employment and credit relations. 9.ABSTRACT:- This present study is an attempt to understand the relationship between the choice of retail formats, based on products attributes, store attributes, consumers’ demography and retail marketing strategies. The outcome of the study reveals that consumers’ choice for modern retail formats vary as their income level increases. Young consumers’ are more inclined to shop from modern retail formats as compared to older ones. Consumers’ prefer modern retail formats due to its significant product attributes like improved quality, variety of brands and assortment of merchandise and store attributes like parking facility, trained sales personnel and
  16. 16. complete security. The retention strategies, promotional strategies, growth and improvement strategies, pricing strategies and competitive strategies are the major contributors for the growth of organized retailing and play an important role in enhancing the sales of retail formats. Further, the study helps in designing a framework for choice of modern retail formats from Consumers’ and Retailers’ Perspective.