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Bishnoi,vinod kumar bharti and gupta, nidhi consumer shopping behaviour in organized food


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Bishnoi,vinod kumar bharti and gupta, nidhi consumer shopping behaviour in organized food

  1. 1. Consumer Shopping Behaviour in OrganizedFood and Grocery Stores: A Case Study ofNational Capital RegionVinod Kumar Bishnoi, Bharti and Nidhi GuptaKEY WORDS: Consumer Shopping Behaviour; Organized Retailing; Food and Grocery.INTRODUCTIONIndian economy has transformed from an extensive controlled economy to aliberal market driven economy. High- income opportunities, changing attitudetowards saving, international exposure and necessities of lifestyle are the keydrivers for fast evolving Indian consumer behaviour (KSA Technopark, 2006).Indian retail industry is witnessing a paradigm shift as the sector is gettingorganized and consumers are seeking a one-stop shopping place with convenienceand entertainment. Professionally managed and separately owned retailorganizations are the face of today’s retail sector. India is stepping into a new eraof ‘Retail Chains’ from the traditional neighbourhood ‘Kirana Store’. Economicgrowth, changing lifestyles, urbanization, women’s participation in economicactivities and the spread of IT are the some of the key factors for the growth of theretail sector. It is the fastest growing sector of the economy with a compoundedannual growth rate of 46.64 per cent. The estimated worth of organized retailindustry is Rs. 350 bn, accounting for less than 3 per cent of the total retail market.Organized retailing provides an ideal shopping experience through consumerpreference analysis, excellent ambience and choice of merchandise. Changinglifestyles, strong income growth and favourable demographics are the drivers forthe fast growth of this sector. Rising income level, education, acceptance of smartand credit cards and global exposure have an impact on the Indian consumer’sshopping habits (Baseer and Laxmi Prabha, 2007). Health and beauty careservices, food and grocery, entertainment and catering services, footwear andVinod Kumar Bishnoi, Associate Professor, Haryana School of Business, Guru Jambheshwar University ofScience and Technology, Hisar • Phone: 91 9416136505 • E-mail:, Research Fellow, Haryana School of Business, Guru Jambheshwar University of Science andTechnology, Hisar • Phone: 91 9416056786 • E-mail: Gupta, Student, MBA Final Year, Haryana School of Business, Guru Jambheshwar University of Scienceand Technology, Hisar • Phone: 91 9255900777 • E-mail: 3rd IIMA Conference on Marketing Paradigms for Emerging Economies 587
  2. 2. mobile phones, apparel and fashion accessories and jewellery are the fastestgrowing organized retail categories. In food and grocery retailing, the largestcomponent of retail, only 1 per cent is organized; the remaining 99 per cent isunorganized. Food and grocery has three sub categories: branded FMCG products,dry and unprocessed grocery, fresh grocery and delicatessen (Sahani, 2007).Impact of the factors like availability of favourite brands, social status, buyingbehaviour during discounts, influence of family and friends over the store andbrand choice, relationship between store and store brand, and consumerperception towards store and nationa l brands while shopping from a store, havenot yet been gauged much by marketers. Thus, this paper is an endeavour tounderstand and deliberate consumer shopping behaviour towards organized foodand grocery stores, so as to have a better insight of consumers buying behaviour.OBJECTIVES OF THE STUDY1. To investigate the consumer shopping behaviour dimensions.2. To measure the significance of demographic variables on shopping behaviour dimensions.To achieve these objectives, answers to the following questions were sought:1. Do demographic variables and consumer shopping behaviour dimensions differ significantly?2. Do membership status and consumer shopping behaviour dimensions differ significantly?RESEARCH METHODOLOGYThe present study is focused on the shopping behaviour dimensions of consumerswho visit organized stores for food and grocery items. To achieve an under-standing of this, a questionnaire consisting of 33 items was developed. All theresponses pertaining to this study were obtained on a 5-point Likert scale (frompoint 5 strongly agreeing to point 1 strongly disagreeing). A convenient samplingmethod was used to obtain the data from the four areas of NCR namely Gurgaon,Faridabad, Noida and Delhi. A total of 400 questionnaires were administered;responses to 365 were received. Out of the collected 365 questionnaires, 330 werefound to be fit for analysis. While conducting the survey due care was taken toinclude respondents from different walks of life, i.e., gender, educationalbackground, occupation, age group, income level, etc. (Table 1).588 3rd IIMA Conference on Marketing Paradigms for Emerging Economies
  3. 3. Table 1: Demographic Profile of Respondents Variable Frequency Percentage Gender Male 191 57.9 Female 139 42.1 Age (in years) Below 25 76 23.0 25–35 143 43.3 35–50 88 26.7 Above 50 23 7.0 Education upto 12th 54 16.4 Graduation 152 46.1 Post Graduation 124 37.6 Occupation Business 70 21.2 Profession 48 14.5 Service 156 47.3 Housewife 56 17.0 Monthly Household Less than 20000 92 27.9 Income (in rupees) 20000–40000 125 37.9 40000–60000 82 24.8 more than 60000 31 9.4 Membership Member 106 32.1 Non-Member 224 67.9The scale of variables was also put to reliability test, the obtained a value show of0.687on the Cronbach alpha scale, which is considered satisfactory. The data wasanalysed with the help of factor analysis and one-way ANOVA. Factor analysiswas applied to investigate consumer shopping behaviour dimensions whereas tomeasure the significance of demographic variables on shopping behaviourdimensions, one-way ANOVA was adopted.RESULTS AND DISCUSSIONSAs mentioned in the research methodology, the scale consisting of 33 items wasanalysed; items having low inter- item correlation were dropped and 28 items werekept for further analysis. Factor analysis with principal component method andvarimax rotation extracted nine factors as consumer shopping behaviour dimensions(Table 2). One-way ANOVA indicate the significant difference between theconsumers of different demographic profile and their shopping behaviour dimensions(Table 3). 3rd IIMA Conference on Marketing Paradigms for Emerging Economies 589
  4. 4. Table 2: Factor Analysis of Variables Rotated Factor Factor Label and Variables Loadings 1. Impulsiveness and Price Consciousness I always buy the brands which I have already decided in advance. –0.796 Many a times, I go to a store, see the product, if liked buy it. 0.761 Given the same quality, I will prefer to buy store brand than costlier national brand. 0.657 During discount period, I usually try new store brands. 0.749 It is mainly the price of the store brand that influences me to buy them. 0.595 If my brand is not available at the store I go for another brand. 0.738 2. Utility and Variety Seeker I visit a store as it is a one stop shopping place. 0.536 I like self-selection while shopping. 0.519 I visit stores as number of varieties are available there. 0.821 I always look for comparison of different brands in a store. 0.737 I feel usually national brands do not offer much discount. 0.466 3. Store Loyalty I prefer to visit the store nearest to my place. –0.528 I buy all food and grocery items from stores only. 0.766 I like to shop in a store due to acceptance of credit/debit cards. 0.765 I visit stores for the store brands of my choice. 0.571 4. Time consumption The store’s advertisement encourages me to visit the store. 0.451 I like self-selection while shopping. 0.486 I prefer to visit store as it saves my time and energy. –0.714 I enjoy shopping at a store. 0.518 5. Status Consciousness I believe “High price means high quality”. 0.732 I feel shopping at stores is a status symbol these days. 0.708 6. Opinion Seeker The store’s advertisement encourages me to visit the store. –0.410 I came to know about the store from my friends/relatives. 0.740 My friends/relatives usually suggest me to try the store brands. 0.733 7. Quality Consciousness I usually compare the quality of brands while purchasing from a store. 0.724 I think store provides better quality product. 0.642 8. Shoppertainment I enjoy shopping at a store. 0.425 I always go to store with my family or friends. 0.630 I feel no difference while shopping from a store or somewhere else. –0.603 9. Value Consciousness I feel that store brands are reasonably priced. 0.636 I look for the benefit of the product for the price I pay. 0.703Barlett’s test of sphericity = 0.00; Kaiser-Meyer-Olkin KMO (0.804)590 3rd IIMA Conference on Marketing Paradigms for Emerging Economies
  5. 5. Table 3: One way ANOVA Monthly Gender Age Education Occupation Household Membership Factor Income F Sig. F Sig. F Sig. F Sig. F Sig. F Sig.Impulsiveness and 47.324 .000* .788 .501 .662 .517 5.099 .002* .454 .715 4.492 .035*Price ConsciousnessUtility and Variety 83.557 .000* 2.198 .088 .117 .889 4.958 .002* 4.365 .005* 1.044 .308SeekerStore Loyalty .059 .808 .303 .823 3.158 .044* .486 .692 4.294 .005* 225.309 .000*Time Consumption 49.901 .000* .181 .909 .038 .963 16.187 .000* 1.663 .175 .304 .582Status 7.549 .006* .383 .765 1.018 .362 2.616 .051 .821 .483 .862 .354ConsciousnessOpinion Seeker .047 .829 1.904 .129 .781 .459 2.272 .080 .121 .948 .217 .642Quality 2.679 .103 2.950 .033* 1.847 .159 .557 .644 1.789 .149 3.741 .054ConsciousnessShoppertainment .142 .707 1.606 .188 1.705 .183 1.171 .321 4.085 .007* 1.202 .274Value 9.738 .002* 1.607 .188 4.581 .011* 2.356 .072 1.613 .186 .082 .774ConsciousnessFactor one deals with impulsiveness and price consciousness behavioural dimension.Consumers tend to purchase impulsively as they do not plan in advance and theyalso go for other brand if their preferred brand is not available in a particularstore. They are influenced by the store brands’ prices and try them duringdiscounts and if the quality is delivered, they prefer it over costlier national brand(Table 2). Table 3 explains that impulsive and price conscious behaviour differssignificantly across gender (p = 0.000), occupation (p = 0.002) and membershipstatus (p = 0.035) of the respondents.Factor two entitled utility and variety seeker describes the behavioural dimensionof consumers related to the benefits they draw from shopping at a store like one-stop shopping, self-selection, discounts on store brands and varieties available forcomparison of different brands (Table 2). The one-way ANOVA table indicatesthat respondents of different gender ( = 0.000), occupation ( = 0.002) and p pincome level (p = 0.005) differ significantly on utility and variety seeking aspect(Table 3).Factor three, store loyalty behavioural dimension explains that customers arewilling to visit their preferred store rather than nearby store, and buy all food andgrocery items from such stores. They visit store for their preferred store brandsand also due to the facility of making payment other than cash (Table 2). Table 3 3rd IIMA Conference on Marketing Paradigms for Emerging Economies 591
  6. 6. concludes that store loyalty dimension varies significantly on education (P = 0.000),income (p = 0.000) and membership status (p = 0.000) of the respondents but noton remaining demographic variables, i.e., gender, age and occupation.Fourth factor, time consumption behavioural dimension, considers that consumersenjoy spending time while shopping and making self-selection and store adver-tisements also induce them to visit stores (Table 2). Male and female respondentsvary significantly (p = 0.000) on time consumption dimension and also therespondents across various occupations (p = 0.000) but not by other demographicvariables (Table 3).Fifth factor deals with the status consciousness of the customers who perceivehigh price as high quality and shopping at store as a status symbol (Table 2). Maleand female respondents vary significantly (p = 0.006) for status consciousbehaviour but not on the basis of the other demographic variables (Table 3).Sixth factor, opinion seeker dimension explains the behaviour of respondentswho do not value advertisement for reference but look for the advice from friendsand relatives for making the store and brand selection (Table 2). One-wayANOVA indicates no significant difference among the customers of differentdemographic characteristics and opinion seeking behaviour (Table 3).Seventh behavioural dimension signifies the quality consciousness of theconsumer for products as they consider that stores provide better quality productsand also compare the quality of the brands while purchasing (Table 2).Respondents belonging to different age groups differ significantly (p = 0.033) onquality consciousness dimension but p-values do not signify this phenomenon onany other demographics (Table 3).Shoppertainment is the eighth behavioural dimension of shoppers who look forentertainment and enjoyment while shopping with their friends or family and feelthat there is a different shopping experience at a store (Table 2). Income (p =0.007) of respondents is the only demographic variable that has a significantassociation with this dimension (Table 3).Ninth factor describes the value consciousness of the customers. They look forvalue for money and consider that store brands are reasonably priced (Table 2).Gender (p = 0.002) and education level (p = 0.011) have influence on respondentsin considering the value conscious behavioural dimension for shopping (Table 3).592 3rd IIMA Conference on Marketing Paradigms for Emerging Economies
  7. 7. MARKETING IMPLICATIO NSOrganized retail sector is growing rapidly and consumers are shifting to shoppingin organized retail stores. Thus, understanding of shoppers’ behaviour is the keyto success for the retailers. Marketers will have to understand the consumers’shopping behavioural dimensions that will help them to tap the consumer in abetter way.The customers visiting organized food and grocery stores are status and qualityconscious while deciding on the store to purchase from and brands to purchase.They always look for the benefits of shopping in a store over the traditional retailoutlets in terms of self- selection, variety, comparison of brands and discountsavailable and also seek value for the money they pay. They love to spend time inshopping and prefer to visit store along with family and friends; in all, they seekfor complete entertainment while shopping. In order to taste success a marketerhas to equip himself by taking into consideration all the said aspects of the studybecause potentiality in itself is not going to serve any purpose.REFERENCESBaseer, A. and Laxmi Prabha, G (2007). “Prospects and Problems of Indian Retailing,” Indian . Journal of Marketing, 37(10), 26– 8.Global Consumer and Retail: Vision 2015, 8th Marketing and Retailing Summit, 12–14 February 2006, New Delhi.Sahani, P.B. (2007). “Consumer Buying Behaviour and Food Retailing,” Marketing Mastermind, (December), 21–5. 3rd IIMA Conference on Marketing Paradigms for Emerging Economies 593