Brief write-up on consumer behavior in retail

1. Assignment on changing consumer behavior
pattern in organized retail
SubmittedBy:-
Gaurav
2013MB0032
DMS, ISM Dhanbad

2. CHANGINGCONSUMER BEHAVIOR PATTERN IN ORGANIZED RETAIL
Retail sector in India is one of the major contributors in Indian economy. India is one of the
fastest growing retail markets in the world. Their are various mom & pop shop available across
the country which is basically a family owned business catering to small section of society. They
are small, individually run retail outlet. Unorganized retailing such as mom & pop stores are
giving competition to organized sector. The major advantage of unorganized retailing is
familiarity with consumer catering in small area with low operating cost. They provide
convenient timing, opportunity to bargain, credit sales loose items and home delivery.
On the other hand organized retailing sector is growing with change in life style,
spending pattern and increased earning of middle class people. Organized retail sector includes
Super markets, Hyper markets and Retail chain. Organized retail market is mainly available in
tier 1 and tier 2 cities, it still have to mark its presence in small cities. ITC has taken an initiative
to penetrate rural Indian market by introducing choupal sagar which is one of the first
organized retail market into the hinterland. The choupal sagar mall covers a wide range of
product from FMCG products to electronics goods and from Apparels to Tractors. This type of
initiative is changing the trend of buying in rural markets.
ORGANISED RETAIL MARKET
 Super Markets(Reliance Fresh)
 Hyper Markets(Big Bazaar)
 Departmental Stores(Shoppers Stop)
 Exclusive/ Multiple Brand Outlet(Nike, Pantaloons)
CONSUMER BEHAVIOR AND RETAILING DECISION
Consumer behavior includes Emotional and mental process and observable behavior of
consumer before considering any product for the final consumption.
A social, psychological and personal factor affects consumer buying behavior. Social factor
includes culture and sub culture. Psychological factor includes motive, perception, personality
and attitude. Personal factor includes Demographic factor situational factor and life style.
There is a huge change in the consumer behavior and spending pattern. Now a day consumer
has higher income, Credit cards, a desire of standard living and a modern trend of shopping.
Organized retail with a wide range of product under one roof with unique and psychological
marketing strategy making consumers addicted of supermarkets and malls which is fueling the
growth of organized retail. Consumers don’t pay attention only on price and quality but also on
the brand which is now a symbol of status and reflects their lifestyle. This trend encourages

3. multinational brands to operate in India with their tailored product according to Indian
environment.
CHANGING BEHAVIOR IN ORGANISED SECTOR
 Credit card acceptance
 Multibrand and modern shopping experience
 Fresh and wide range of products
 High quality stock
 Attractive offer
 Discount pricing
FACTORS INFLUENCING THE BEHAVIOR OF CONSUMER
 Range of merchandise
 Convenience of shopping
 Attractive offer on frequent shopping
 Discounts
 Excellent Service
 Use of technology in retailing benefitted both retailer and consumer
Hence, consumer behavior in organized retailing is understood by their buying behavior and
spending pattern. Toady consumers are looking for shopping convenience and want to have all
their requirements under one roof, coupled with speed in the retail store operations. Due to
time constraints people are looking for shopping with entertainment this leads to increased
footfalls in malls with multiplexes. Organized retailing has also started influencing the way the
consumers look at the market, not only in terms of choice of products and services, but also in
terms of the overall shopping experience. They trying to give enhanced shopping experience,
hygiene environment and value added services to the customers to change there shopping
pattern from unorganized to organized retail.