Project milon

APROJECT ON
“A STUDY ON RETAILADVERTISINGAND ITS
IMPACT ON CONSUMER CHOICE”
by
MILON MALLICK
2491000044

For partial fulfillment of the requirements of final year MBA curriculum of Two
years Full time MBA (Industry Integrated) Programme.

Submitted to:

Through

1

STUDENT‟S DECLARATION

I hereby solemnly affirm, declare and state that report on “A Study
onretail advertising and its impact on consumer choice” was done by
me with due diligence and sincerity and this report based on that study is
a bonafied work by me and submitted to ANNAMALAI UNIVERSITY
through RAMAIAH INSTITUTE OF MANAGEMENT SCIENCES
under the guidance and supervision of Prof Julie Sunil, Faculty RIMS is
my original work and not submitted for the award of any other degree,
diploma, fellowship or other similar title or prizes.

PLACE: BANGALORE Signature:

DATE:

2

CERTIFICATE FROM THE GUIDE

This is to certify that the project report titled ―A Study on

retailadvertising and its impact on consumer choice‖

byMilonMallick,Enrolment No.2491000044 carried out in partial

fulfillment for the award of degree of MBA (Industry Integrated)

programme of Annamalai University at RIMS, Bangalore under my

guidance and direction. This study report is an original work and not

submitted earlier to any University/Institute.

PLACE: BANGALORE Signature:

DATE: Guide Name

3

TABLE OF CONTENTS

Contents Page no.

Title 1

Student declaration 2

Certificate from the guide 3

Acknowledgement 5

List of tables and diagrams 6

Executive summary 7

Introduction 8-24

Survey of literature 25-30

Research methodology 31-32

Testing of hypothesis 33-36

Analysis of research result 37-43

Findings 44-45

Conclusion 46

Limitation of studies 47-48

Bibliography 49

Appendix-1 50-54

Appendix-2 55-59

4

ACKNOWLEDGEMENT

I am grateful to our beloved Director Dr. M R PATTABHIRAMRAM, our dean Dr.

Y RAJARAM, Coordinator Prof. SREERENGAN V.Rfor inspiring me to take up

this project.

I extend my special gratitude to, my project guide Prof. JULIE SUNILwho has been

supporting and helping me throughout my project which was the best thing that happened to me

during the research. I could understand market research from her. I do not have enough words to

express my gratitude to her.

They gave me confidence to complete my project and made me understand every step

of the project. They guided me constantly during all the phases of the project and corrected me

whenever I was wrong in the project work. They have made the completion of the project

possible; I do not have words to express my gratitude to them.

.

Sincerely

STUDENT NAME: MilonMallick

(Reg. No.2491000044)

5

List of table and diagrams:

Sr.no particular Page no.

1. Testing of hypothesis (acceptance of alternative hypothesis) 34



4. The retail advertisement has increased in which media 38

5. Retail ads in proportion to company ads and 39
Spending on retail

6. Retail ads in newspaper for special offers and 40
compare prices shown in retail ads

7. Shopping decisions due to information gathered from retail ads 41
And membership card of retail

8. Gathering membership cards from new retailers and 42
SMS /email updates about new sales promotions by retailers

9. Always act on the information given in the SMS / email 43

6

EXECUTIVE SUMMARY

Indian retail sector is witnessing one of the most hectic marketing activities of all times. The

companies are fighting to win the hearts of customer who is God said by the business tycoons.

There is always a ‗first mover advantage‘ in an upcoming sector. In India, that advantage goes to

―BIG BAZAAR‖ followed by ―RELIANCE FRESH‖. It has brought about many changes in the

purchasing habits of people. It has created formats, which provide all items under one roof at low

rates, or so it claims. In this project, we will study its marketing strategies and promotional

activities.

The research titled ―STUDY OF RETAIL ADVERTISING AND ITS IMPACT

ONCONSUMER CHHOICE ―helps us to understand the factors effecting the buying

decision.which is responsible for affecting customer towards big bazaar, reliance freshetc.This

study helpful to top level management to improve the customer purchasing decision on retail

sector.

This research is a study on impact of retail advertising at retail sector. The research was carried

out as per the steps of Marketing Research. The well supportive objectives were set for the study.

To meet the objectives primary research was undertaken. The data collection approach adopted

survey research. The instrument used for the data collection was questionnaire. The target

respondents were the visitors of BIG BAZAAR as well as RELIANCE FRESH, with the sample

size of 100 for my research project from the outlets of the company. Tables & charts were used

to translate responses into meaningful information to get the most out of the collected data.

Based on those the inferences have been drawn with peer supportive data.

7

Introduction
Advertising is a form of communication used to encourage or persuade an audience (viewers,
readers or listeners) to continue or take some new action. Most commonly, the desired result is to
drive consumer behavior with respect to a commercial offering, although political and
ideological advertising is also common. The purpose of advertising may also be to reassure
employees or shareholders that a company is viable or successful. Advertising messages are
usually paid for by sponsors and viewed via various traditional media; including mass mediasuch
as newspaper, magazines, television commercial, radio advertisement, outdoor advertisement or
direct mail.

Commercial advertisers often seek to generate increased consumption of their products or
services through branding, which involves the repetition of an image or product name in an effort
to associate certain qualities with the brand in the minds of consumers. Non commercial
advertisers who spend money to advertise items other than a consumer product or service include
political parties, interest groups, religious organizations and governmental agencies. Non profit
may rely on free modes of persuasion, such as a public service announcement (PSA).

Modern advertising developed with the rise of mass production in the late 19th and early 20th
centuries.

In 2010, spending on advertising was estimated at $142.5 billion in the United States and $467
billion worldwide.

According to YAHOO FINANCE top five advertising holding companies worldwide revenue are

1. OMNICOM GROUP

2. WPP GROUP

3. THE INTERPUBLIC GROUP OF COMPANIES

4. PUBLICIS GROUP S.A

5. DENTSU INC

9

The Principle of Advertisement

Advertisement is an encapsulated communication about a product (good/services), a clearly
designed, concise, aesthetically appealing and content-wise accurate communiqué intended to
effectively persuade the target audience(viewers/listeners/readers) to arrive at a decision as
desired by the advertiser often concerning the product (goods/service). Usually the aim of an
advertisement is to increase the sales of a product introduced into the market. The advertisement
will speak about the salient features of the product on offer and the benefit the
customer/consumer can derive out of the product. It can also educate the target audience about
the various other details such as the products cost, availability, usage modalities, problems that
may arise whiles using it and the probable solutions to those problems etc.

Advertisement also is used to inform a mass of audience about various socially relevant factors
such as employment, upcoming events, contests or elections or a host of other such events. Now
newer media of advertisements are emerging and growing. Internet based media like social
networks, web portals, trade portals etc. are some of those. Marketing managers conceptualise
special event simply to coercively communicate product related sales communications. Normally
the advertisements are prepared in such a way that they attract the attention of the intended
parties easily. Thoughtfully constructed copy (words/diction of an advertisement), interesting
visual or pictures, attractive colours and designs, a uniquely arrived at theme, the central steam
of thought, etc. arouse interest of the customers, and help to retain the interest. Persuasive
elements of the advertisement drive the customers towards a strong desire to possess the product.
This finally leads them toward buying or possessing the product. Professional managers don‘t
construe this as the final point in advertising. They proceed for an extra mile to ensure the initial
trial becomes a success and ensures repeated clientele.

10

HISTORY OF ADVERTISING

Egyptians used papyrus to make sales messages and wall posters. Commercial messages and
political campaign displays have been found in the ruins of Pompeii and ancient Arabia. Lost and
found advertising on papyrus was common in Ancient Greece and Ancient Rome. Wall or rock
painting for commercial advertising is another manifestation of an ancient advertising form,
which is present to this day in many parts of Asia, Africa, and South America. The tradition of
wall painting can be traced back to Indian rock art paintings that date back to 4000 BC. History
tells us that Out-of-home advertising and billboards are the oldest forms of advertising.

As the towns and cities of the Middle Ages began to grow, and the general populace was unable
to read, signs that today would say cobbler, miller, tailor or blacksmith would use an image
associated with their trade such as a boot, a suit, a hat, a clock, a diamond, a horse shoe, a candle
or even a bag of flour. Fruits and vegetables were sold in the city square from the backs of carts
and wagons and their proprietors used street callers (town criers) to announce their whereabouts
for the convenience of the customers.

As education became an apparent need and reading, as well as printing, developed advertising
expanded to include handbills. In the 18th century advertisements started to appear in weekly
newspapers in England. These early print advertisements were used mainly to promote books
and newspapers, which became increasingly affordable with advances in the printing press; and
medicines, which were increasingly sought after as disease ravaged Europe. However, false
advertising and so-called "quack" advertisements became a problem, which ushered in the
regulation of advertising content.

As the economy expanded during the 19th century, advertising grew alongside. In the United
States, the success of this advertising format eventually led to the growth of mail-order
advertising.

In June 1836, French newspaper La Presse was the first to include paid advertising in its pages,
allowing it to lower its price, extend its readership and increase its profitability and the formula
was soon copied by all titles. Around 1840, Volney B. Palmer established the roots of the
modern day advertising agency in Philadelphia. In 1842 Palmer bought large amounts of space in

11

various newspapers at a discounted rate then resold the space at higher rates to advertisers. The
actual ad - the copy, layout, and artwork - was still prepared by the company wishing to
advertise; in effect, Palmer was a space broker. The situation changed in the late 19th century
when the advertising agency of N.W. Ayer & Son was founded. Ayer and Son offered to plan,
create, and execute complete advertising campaigns for its customers. By 1900 the advertising
agency had become the focal point of creative planning, and advertising was firmly established
as a profession. Around the same time, in France, Charles-Louis Havas extended the services of
his news agency, Havas to include advertisement brokerage, making it the first French group to
organize. At first, agencies were brokers for advertisement space in newspapers. N. W. Ayer &
Son was the first full-service agency to assume responsibility for advertising content. N.W. Ayer
opened in 1869, and was located in Philadelphia.

At the turn of the century, there were few career choices for women in business; however,
advertising was one of the few. Since women were responsible for most of the purchasing done
in their household, advertisers and agencies recognized the value of women's insight during
thecreative process. In fact, the first American advertising to use a sexual sell was created by a
woman – for a soap product. Although tame by today's standards, the advertisement featured a
couple with the message "The skin you love to touch".

In the early 1920s, the first radio stations were established by radio equipment manufacturers and
retailers who offered programs in order to sell more radios to consumers. As time passed, many
non-profit organizations followed suit in setting up their own radio stations, and included:
schools, clubs and civic groups.When the practice of sponsoring programs was popularised, each
individual radio program was usually sponsored by a single business in exchange for a brief
mention of the business' name at the beginning and end of the sponsored shows. However, radio
station owners soon realised they could earn more money by selling sponsorship rights in small
time allocations to multiple businesses throughout their radio station's broadcasts, rather than
selling the sponsorship rights to single businesses per show.

This practice was carried over to commercial television in the late 1940s and early 1950s. A
fierce battle was fought between those seeking to commercialise the radio and people who
argued that the radio spectrum should be considered a part of the commons – to be used only

12

non-commercially and for the public good. The United Kingdom pursued a public funding model
for the BBC, originally a private company, theBritish Broadcasting Company, but incorporated
as a public body by Royal Charter in 1927. In Canada, advocates like Graham Spry were
likewise able to persuade the federal government to adopt a public funding model, creating
the Canadian Broadcasting Corporation. However, in the United States, the capitalist model
prevailed with the passage of the Communications Act of 1934 which created the Federal
Communications Commission (FCC). However, the U.S. Congress did require commercial
broadcasting companies to operate in the "public interest, convenience, and necessity". Public
broadcasting now exists in the United States due to the 1967 Public Broadcasting Act which led
to the Public Broadcasting Service (PBS) and National Public Radio (NPR).

In the early 1950s, the DuMont Television Network began the modern practice of selling
advertisement time to multiple sponsors. Previously, DuMont had trouble finding sponsors for
many of their programs and compensated by selling smaller blocks of advertising time to several
businesses. This eventually became the standard for the commercial television industry in the
United States. However, it was still a common practice to have single sponsor shows, such
as The United States Steel Hour. In some instances the sponsors exercised great control over the
content of the show—up to and including having one's advertising agency actually writing the
show. The single sponsor model is much less prevalent now, a notable exception being
the Hallmark Hall of Fame.

In the 1960s, campaigns featuring heavy spending in different mass media channels became
more prominent. For example, the Esso gasoline company spent hundreds of millions of dollars
on a brand awareness campaign built around the simple and alliterative theme Put a Tiger in
Your Tank. Psychologist Ernest Dichter and DDB Worldwide copywriter Sandy Sulcer learned
that motorists desired both power and play while driving, and chose the tiger as an easy–to–
remember symbol to communicate those feelings. The North American and
laterEuropean campaign featured extensive television and radio and magazine ads, including
photos with tiger tails supposedly emerging from car gas tanks, promotional events featuring real
tigers, billboards, and in Europe station pump hoses "wrapped in tiger stripes" as well as pop
music songs. Tiger imagery can still be seen on the pumps of successor firm ExxonMobil.

13

The late 1980s and early 1990s saw the introduction of cable television and particularly MTV.
Pioneering the concept of the music video, MTV ushered in a new type of advertising: the
consumer tunes in for the advertising message, rather than it being a by-product or afterthought.
As cable and satellite television became increasingly prevalent, specialty channels emerged,
including channels entirely devoted to advertising, such as QVC, Home Shopping Network,
and ShopTV Canada.

With the advent of the ad server, marketing through the Internet opened new frontiers for
advertisers and contributed to the "dot-com" boom of the 1990s. Entire corporations operated
solely on advertising revenue, offering everything from coupons to free Internet access. At the
turn of the 21st century, a number of websites including the search engine Google, started a
change inonline advertising by emphasizing contextually relevant, unobtrusive ads intended to
help, rather than inundate, users. This has led to a plethora of similar efforts and an increasing
trend of interactive advertising.

The share of advertising spending relative to GDP has changed little across large changes
in media. For example, in the US in 1925, the main advertising media were newspapers,
magazines, signs on streetcars, and outdoor posters. Advertising spending as a share of GDP was
about 2.9 percent. By 1998, television and radio had become major advertising media.
Nonetheless, advertising spending as a share of GDP was slightly lower—about 2.4 percent.

A recent advertising innovation is "guerrilla marketing", which involve unusual approaches such
as staged encounters in public places, giveaways of products such as cars that are covered with
brand messages, and interactive advertising where the viewer can respond to become part of the
advertising message.Guerrilla advertising is becoming increasing more popular with a lot of
companies. This type of advertising is unpredictable and innovative, which causes consumers to
buy the product or idea. This reflects an increasing trend of interactive and "embedded" ads, such
as via product placement, having consumers vote through text messages, and various innovations
utilizing social network services such as Facebook.

14

HISTORY OF ADVERTISING IN INDIA

There has been a long tradition of advertising in India since the first newspapers published in
India in the 19th Century carried advertising. The first advertising agency was established in
1905, B. Datram and Company, followed by The India-Advertising Company in 1907, the
Calcutta Advertising agency in 1909, S.H.Bensen in 1928, J. Walter Thompson Associates
through its Indian associate, Hindustan Thompson Associates in 1929, Lintas (Lever
international Advertising Services) in 1939 and McCann Erikson in 1956. Advertising
expenditure in the 1950s was estimated at $US 300,000. Under the more socialist political
environment of the 1960s and 1970s there was little incentive for companies to advertise because
advertising was not tax deductible. In the 1970s there was a 58% growth in the number of
registered agencies from 106 in 1969 to 168 in 1979, and this included a growth in Indian
agencies. The first advertising appeared on state television in 1976.

With the opening of the economy in the 1980s there was a growth in the number of alliances
with multinational agencies and an expansion in advertising though foreign network participation
in agency ownership was limited. In 1987 Hindustan Thompson was affiliated to J. Walter
Thompson. Lintas, the 2nd ranking agency, held only 4% of its subsidiary, as did Ogilvie and
Mather. Saatchi and Saatchi/Compton had minority interests in Compton as did Lintas. A study
done in 1984 of the largest companies in India found that the ratio of advertising expenditure to
sales had risen from .64 in 1976, to .71 in 1980 to .74 in 1984. Foreign controlled corporations
had the dominant share of total advertising expenditure, and 80% of these were in the consumer
goods sectors. Advertising was very concentrated with the top 50 advertisers accounting for 80%
of the advertising spending and the top 10 advertisers made up 40% of that figure, 32% of the
total. The largest advertiser throughout the period was Hindustan Lever which was nearly 10%
of the advertising budget of the corporate sector companies.Pharmaceutical companies were also
significant advertisers at this time.

15

Credit:
Ciochetto, L. (2004) Advertising and globalization in India, Media Asia, 31(2):158.

-Indian Advertising starts with the hawkers calling out their wares right from the days when
cities and markets first began

-Shop front signages

-From street side sellers to press ads

-The first trademarks

-Handbills distributed separately from the products

18th Century

# Concrete advertising history begins with classified advertising

# Ads appear for the first time in print in Hickey's Bengal Gazette. India's first newspaper
(weekly).

# Studios mark the beginning of advertising created in India (as opposed to imported from
England) Studios set up for bold type, ornate fonts, more fancy, larger ads

# Newspaper studios train the first generation of visualisers & illustrators

# Major advertisers: Retailers like Spencer's, Army & Navy and Whiteaway & Laidlaw

# Marketing promotions: Retailers' catalogues provided early example

# Ads appear in newspapers in the form of lists of the latest merchandise from England

# Patent medicines: The first brand as we know them today were a category of advertisers

# Horlicks becomes the first 'malted milk' to be patented on 5th June 1883 (No. 278967).

# 1931- National Advertising Service Pr. Ltd. Bombay set up

# 1936- Indian Broadcasting Company becomes All India Radio (AIR)

# 1978 -First television commercial seen
16

# 1990-Marks the beginning of new medium Internet
# 1991- First India-targetted satellite channel, Zee TV starts broadcast

Overview of Retail Industry:

Retail comes from the Old French word tailer (compare modern French retailer), which means

"to cut off, clip, pare, divide" in terms of tailoring (1365). It was first recorded as a noun with the

meaning of a "sale in small quantities" in 1433 (from the Middle French retail, "piece cut off,

shred, scrap, paring").Like the French, the word retail in both Dutch and German

(detailhandel and Einzelhandel, respectively) also refers to the sale of small quantities of items.

Retail consists of the sale of physical goods or merchandise from a fixed location, such as a

departmental store, boutique or by mall, in small or individual lots for direct consumption by the

purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be

individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities

from manufacturer or directly or through a wholesaler, and then sells smaller quantities to

the end-user. Retail establishments are often called shops or stores. Retailers are at the end of

the supply chain. Manufacturing marketers see the process of retailing as a necessary part of their

overall distribution strategy. 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.

Shops may be on residential streets, shopping 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

17

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. Sometimes this is done to obtain

necessities such as food and clothing; sometimes it is done as a recreational activity.

Recreational shopping often involves window shopping (just looking, not buying) and browsing

and does not always result in a purchase.

Introduction to Indian Retail Industry:

The Indian retail Industry is divided into organised and unorganised sectors. Organised retailing

refers to trading activities undertaken by licensed retailers, that is, those who are registered for

sales tax, income tax, etc. These included the corporate-backed hypermarket and retail chains,

and also the privately owned large retail businesses. Unorganised retailing, on the other hand,

refers to the traditional formats of low cost retailing, for example, the local kirana shop, owned

managed general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors,

etc.

India‘s retail sector is wearing new clothes and with a three-year compounded annually growth

rate of 46.64%, retail is the fastest growing sector in the Indian economy. Traditional markets are

making way for new formats such as departmental stores, hypermarkets, supermarkets and

speciality stores. Western-style malls have begun appearing in metros and second-rung cities

alike, introducing the Indian consumer to an unparalleled shopping experience.

The Indian retail sector is highly fragmented with 97% of its business begin run by the

unorganized retailers like the traditional family run stores and corner stores. The organised retail

18

however is at a very nascent stage though attempts are being made to increase its proportion to 9-

10% by the year 2012 bringing a huge opportunity for prospective new players. The sector is the

largest source of employment after agriculture, and has deep penetration into rural India

generating more than 10% of India‘s GDP.

History of Retail industry:

Retailing is a distribution channel function, where one organisation buys products from

supplying firms or manufactures products themselves, and then sells these directly to

consumers. In majority of retail situations, the organisation, from whom a consumer buys, is a

reseller of products obtained from others, and not the product manufacturer. However, some

manufacturers do operate their own retail outlets in a corporate channel arrangement.

Retailers offer many benefits to suppliers and customers as resellers. Consumers, for instance,

are able to purchase small quantities of an assortment of products at a reasonably affordable

price. Similarly, suppliers get an opportunity to reach their target market, build product demand

through retail promotions, and provide consumer feedback to the product marketer.

During the last few years, the Indian retail market has seen considerable growth in the organised

segment. Major domestic players have entered the retail arena and have ambitious plans to

expand in the future years across verticals, formats, and cities. For example, companies like

Reliance, Tata, Bharti, Adani Enterprise, have been investing considerably in the booming

Indian retail sector. Besides, a number of transnational corporations have also set up retail

chains in collaboration with big Indian companies.

19

The Indian retail sector is highly fragmented and the unorganised sector has around 13 million

retail outlets that account for around 95-96% of the total Indian retail industry. However, going

forward, the organised sector‘s growth potential will increase due to globalisation, high

economic growth, and changing lifestyle. Moreover, high consumer spending over the years by

the young population (more than 31% of the country is below 14 years) and sharp rise in

disposable income are driving the Indian organised retail sector‘s growth. Even small towns and

cities are witnessing a major shift in consumer lifestyle and preferences, and have thus emerged

as attractive markets for retailers to expand their presence. Although the growth potential in the

sector is immense, it is not without challenges that could slow the pace of growth for new

entrants. Rigid regulations, real estate costs, high personnel costs, lack of basic infrastructure,

shrinkage, and highly competitive domestic retailer groups are some such challenges.

Additionally, resource constraints at shopping mall projects are also delaying completion and

disrupting many retailers‘ entry strategies.

Role of Retail industry:

Retailing includes all the activities involved in selling goods or services directly to final

consumers for their personal, non-business use. Retailers are of various types such as

convenience stores, specialty stores, department stores, supermarkets, discount stores, catalogue

showroom, non-store retailing, chain stores, shopping mall/centres, superstores.

The role of retail industry is to perform retailing functions efficiently than can wholesalers.

Retail outlets exist in every nook and corner of the country. They make shopping convenient to

20

customers. It promotes product to ultimate consumers through promotion schemes, store displays

and point-of-purchase display. It provides long term relationship with the consumers. They also

provide information about competitor‘s activities relating to product, price and promotion. They

further assist in market surveys. Customers can match products with needs and purchasing

power. They can get choice in terms of features, advantages and benefits of products. It also

offers varieties of services such as delivery, installation, repair, maintenance, and supply of spare

parts.

The retail industry in Malaysia currently is characterised by several retail formats; each format

has its own problems and developmental needs. The very large format retail stores comprise

hypermarkets and large supermarkets. Foreign retail operators basically own these large format

stores. Examples are Carrefour, Giant, Tesco and Jusco. Currently, this format of retail store is

the fastest growing in terms of sales, not only in Malaysia but also in this region. The second

format is the medium sized supermarkets and/or departmental stores basically owned by local

operators. These types of stores are badly hit by the foreign pressure. The third format is the

smaller stores including pharmacies, garments, electrical goods, accessories and multitude of

different merchandise offered for sale. Finally, the smaller provision stores, including mini

markets and sundry shops, mostly located in housing areas and smaller towns and villages.

Objectives of Retail industry:

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. This sector contributes 17% of India‘s GDP and the current growth rate is

21

8.5%. The present size of the organized retailing sector is approximately 3% and is expected to

grow to 25-30% by the year 2012. There are about 400 new malls, 1600 supermarkets and 350

departmental stores currently under construction. Many players are coming up with huge

investments, due to which the present 12 million mom-and-pop shops and kiranas stores fear

losing their business. Most prediction says that the sector might reach to US$ 400-600 billion by

the year 2012.

Opportunities and Challenges in Retail industry:

Opportunities:

The retail industry in india, according to experts, will be a major employment generator in the

future. Currently, the market share of organised modern retail is just over 4% of the total retail

industry, thereby leaving a huge untapped opportunity.

The sector is expected to see an investment of over $30 billion within the next 4-5 years,

catapulting modern retail in the country to $175-200 billion by 2016, according to Technopak

estimates.

On the total organized retail market of Rs 550 billion, the business of fashion accounts for Rs

300.80 billion, which translates into nearly 55% of the organised retail segment in the country.

Challenges:

The country is facing a severe shortage of talented professionals, especially at the middle-

management level.

22

Most Indian retail player are under serious pressure to make their supply chains more efficient in

order to deliver the level of quality and service that consumers are demanding. Long

intermediation chains would increase the cost by 15%.

Lack of adequate infrastructure with respect to roads, electricity, cold chains and ports has

further led to the impediment of a pan-India network of suppliers. Due to these constrains, retail

chain have to resort to multiple vendors for their requirements, thereby, raising cost and price.

The retail sector does not have ‗industry‘ status yet making it difficult for retailer to raise finance

from banks to fund their expansion plans.

Government restrictions on the FDI are leading to an absence of foreign players resulting into

limited exposure to best practices.

Types of Retailers:

In some parts of the world, the retail business is still dominated by small family-run stores, but

this market is increasingly being taken over by large retail chain.

 Departmental store - very large stores offering a huge assortment of "soft" and "hard goods;

often bear a resemblance to a collection of specialty stores. A retailer of such store carries

variety of categories and has broad assortment at average price. They offer considerable

customer service.

 Discount stores - tend to offer a wide array of products and services, but they compete

mainly on price offers extensive assortment of merchandise at affordable and cut-rate prices.

Normally retailers sell less fashion-oriented brands.

23

 Warehouse stores – warehouses that offer low-cost, often high-quantity goods piled on

pallets or steel shelves; warehouse clubs charge a membership fee;

 Variety stores - these offer extremely low-cost goods, with limited selection;

 Demographic - retailers that aim at one particular segment (e.g., high-end retailers focusing

on wealthy individuals).

 Mom-And-Pop - is a retail outlet that is owned and operated by individuals. The range of

products are very selective and few in numbers. These stores are seen in local community

often are family-run businesses. The square feet area of the store depends on the store holder.

 Speciality stores - A typical speciality store gives attention to a particular category and

provides high level of service to the customers. A pet store that specializes in selling dog

food would be regarded as a specialty store. However, branded stores also come under this

format. For example if a customer visits a Reebok or Gap store then they find just Reebok

and Gap products in the respective stores.

 General stores - a rural store that supplies the main needs for the local community;

 Convenience stores - is essentially found in residential areas. They provide limited amount of

merchandise at more than average prices with a speedy checkout. This store is ideal for

emergency and immediate purchases.

 Hypermarkets - provides variety and huge volumes of exclusive merchandise at low margins.

The operating cost is comparatively less than other retail formats.

 Supermarkets - is a self service store consisting mainly of grocery and limited products on

non food items. They may adopt a Hi-Lo or an EDLP strategy for pricing. The supermarkets

can be anywhere between 20,000 and 40,000 square feet (3,700 m2). Example: SPAR

supermarket.

24

 Malls - has a range of retail shops at a single outlet. They endow with products, food and

entertainment under a roof.

Survey of literature

25

Survey of literature

It has been observed that there is increasing number of customer goods and services
offered in recent years suggest that product-line extensions have become a favored strategy
of product managers. A larger assortment, it is often argued, keeps customers loyal and
allows firms to charge higher prices. There also exists a disagreement about the extent to which a
longer product
line translates into higher profits keeping the customer value higher. The academics,
consultants and business people speculated that marketing in the new century would be
very different from the time when much of the pioneering work on customer loyalty was
undertaken (Churchill 1942; Brown 1953; Cunningham 1956, 1961; Tucker 1964; Frank 1967).
Yet there exists the scope for improving the applied concepts as there have been many changes
over conventional ideologies. A study using market-level data for the yogurt category
developed an econometric model derived from a game-theoretic perspective explicitly
considers firms' use of product-line length as a competitive tool (Dragnska and Jain,
2005). On the demand side, the study analytically establishes the link between customer
choice and the length of the product line and includes a measure of line length in the utility
function to investigate customer preference for variety using a brand-level discrete-choice model.
The study reveals that the supply side is characterized by price and line length competition
between oligopolistic firms.

Another study explores qualitatively the understanding of the importance of intangibles as
performance drivers in reference to Swedish organizations using a combination of
evolutionary theory, knowledge-based theory and organizational learning. The study reveals
that the customer values are created towards the new products thro ugh individual

26

perceptions, and organizationaland relation competition. The firm needs to ascertain a
continuous organizational learning process with respect to the valuecreation chain and measure
performance of the new products introduced in the market. In the growing competitive markets
the large and reputed firms are developing strategies to move into the provision of innovative
combinations of products and services as 'high-value integrated solutions' tailored to each
customer's needs than simply 'moving downstream' into services. Such firms are developing
innovative combinations of service capabilities such as operations, business consultancy and
finance required to provide complete solutions to each customer's needs in order to augment the
customer value towards the innovative or new products. It has been argued that the
provision of integrated solutions is attracting firms traditionally based in manufacturing and
services to occupy a new base in the value stream centered on 'systems integration' using
internal or external sources of productdesigning, supply and customer focused promotion
(Davies,2004 ). Besides the organizational perspectives of enhancing the customer value, the
functional variables like pricing play a significant role in developing the customer percep tions
towards the new products.

A study examines the success of new product pricing practices and the conditions upon
which success is contingent discussing three different pricing practices that refer to the use
of information on customer value, competition, and costs respectively. The study argues
that the success of these practices is contingent on relative product advantage and
competitive intensity. The study reveals that there are no general "best" or "bad" practices,
but that a contingency approach is appropriate. Value and pricing models have been developed
for many different products, services and assets. Some of them are extensions and refinements
of convention models value driven pricing theories (Gamrowski & Rachev, 1999; Pedersen,
2000). Also there have been some models that are developed and calibrated addressing
specific issues such as model for household assets demand (Perraudin & Sorensen, 200 0).
The key marketing variables such as price brand name, and product attributes affect
customers' judgment process and derive inference on its quality dimensions leading to customer
satisfaction. The experimental study conducted indicates that
customers use price and brand name differently to judge the quality dimensions and measure the
degree of satisfaction (Brucks , 2000). The value of corporate brand endorsement across

27

different products and product lines, and at lower levels of the brand hierarchy also needs
to be assessed as a customer value driver. Use of corporate brand endorsement either as a
name identifier or lo go identifies the product with the company, and provides reassurance
for the customer (Rajagopal and Sanchez, 2004). A perspective from resource-advantage
theory (Hunt and Morgan, 1995) is used to formulate expectations on the degree to which
the use of information on customer value, competition, and costs contribute to the success
of a price decision. It is argued that the success of these practices is contingent on the relative
customer value the firm has created an d the degree to which this position of relative
value is sustainable in the competitive market place. These expectations are empirically tested
on pricing decisions with respect to the introduction of new industrial capital goods.

Research on consumer reaction to price has been largely confined to examining consumers‘
price information search, evaluation of price alternatives, and individual purchase behaviors
without regard to situational influences. At the same time, consumption has often been
dichotomized in terms of its functional-hedonic nature and closely associated with the level of
satisfaction leading to determine the customer value influence (Wakefield and Inman, 2003). As
the new products are introduced, a firm may routinely pass these costs on to consumers
resulting into high prices. However a less obvious strategy in a competitive situation may
be to maintain price, in order to drive the new product in the market with more emphasis
on quality, brand name, post-sales services and customer relations management as non-
price factors. In many ways, such strategies of a firm with the new products may drive the
consumer behavior towards being sensitive to the price increase when it comes to making
a buying decision. Some of the marketplace and experimental studies show that consumers
are more sensitive to changes in price than to innovation and new products introduced by
the firm (Gourville and Koehler, 2004). There are some critical issues associated to the
price sensitive consumer behavior, whether customers are equally price-sensitive while
purchasing products for functional (e.g. purchasing frozen vegetables, toiletries or paper
towels) versus hedonic (e.g. purchasing a high technology computer or a video camera)
consumption situations and whether perceived value derived during consuming the product
influences price sensitivity. It may also be stated that higher price volatility makes
consumers mor e sensitive to gains and less sensitive to losses, while intense price

28

promotion b y competing brands makes consumers more sensitive to losses but does not
influence consumers‘ sensitivity to gains (Hanet, 2001).

The studies that advocate the models of building customer value through traditional relationship
marketing discuss the long term value concepts to loyal customers. Most importantly, these
are expected to raise their spending and association with the products and services of the
company with increasing levels of satisfactions that attribute to values of customers (Reichheld
and Sasser, 1990). In the most optimistic settings, such value creation is observed to generate
new customers for new products in view of the customer relationship and value
management strategies of the firm (Ganesh, 2000). In the high customer value framework,
the firm ensures diminished costs to serve (Knox, 1998) and exhibits reduced customer
price sensitivities. A database-driven
approach, customer tenure in reference to the length of a customer's relationship and
values retention with a company has often been used to approximate the loyalty construct
(Ganesh 2000; Reinartz and Kumar, 2000; 2002). Hence the relationship marketing with a
customer value orientation thrives on the concept that raises the length of the customer-
company relationship which contributes in optimizing the profit for the firm (Reichheld
and Sasser, 1990). However, the contributions of long-life customers were generally declining
and in a non-contractual setting short-life but high-revenue customers accounted for a
sizeable amount of profits (Reinartz and Kumar, 2000).

The analysis of the perceived values of customers towards new products is a complex
issue. Despite considerable research in the field of measuring customer values in the recent
past, it is still not clear how value interacts with marketing related constructs. However
there exists the need for evolving a comprehensive application models determining the
interrelationship between
customer satisfaction and customer value, which may help in reducing the ambiguities
surrounding both concepts. One of the studies in this regard discusses the two alternative
models yielding empirically tested results in a cross-sectional survey with purchasing
managers in German y. The first model suggests a direct impact of perceived value on the
purchasing managers' intentions. In the second model, perceived value is mediated by

29

satisfaction. This research suggests that value and satisfaction can be conceptualized and
measured as two distinct, yet complementary constructs (Eggert and Ulaga, 2002).

Improvingcustomer value through faster response times for new products is a significant way to
gain competitive advantage. In the globalization process many approaches to new product
development emerge, which exhibit an internal focus and view the new product
development process as terminating with product launch. However, it is process output that really
counts, such as customer availability. A stud y proposes that with shortening product life
cycles it should pay to get the product into the market as quickly as possible, and indicates
that these markets should be defined on an international basis. The results of the study
reveals that greater new product commercial success is significantly associated with a more
ambitious and speedier launch into
overseas markets as the process of innovation is only complete when potential customers
on a world scale are introduced effectively to the new product (Oakley, 1996). The retail
sales performance and the customer value approach are conceptually and methodically
analogous.

30

Research methodology

31

Research methodology:

Title of the problem:

A study on, ―Retail advertising and its impact on consumer choice‖.

Statement of the problem:

Due to the changing trend in the field of advertising as per the launch of lot of me too product.
The advertising is facing a cluttered situation , where many brand try to promote themselves by
similar kind of advertisement. In such case the effectiveness of advertising is critical to impact
the customer purchasing behavior. The pattern, content and frequency of retail adds can have a
direct impact on sales.

(a) Type of data sources:
i. Tools of collecting primary data:
 Questionnaire
ii. Sample size: 100 consumers
iii. Sampling data: simple random sampling
iv. Tools of collecting secondary data:
 Books
 Internet
 Magazines
 Journal

(b) Hypothesis :

Null hypothesis (Ho) : Retail advertising has no impact on consumer purchase decision.
Alternative hypothesis (Ha): There is a significant impact of retail advertising on
consumer purchase decision.

32

(c) Statistical tools for hypothesis testing:
Chi-square test.

TESTING OF HYPOTHESIS

33

TESTING OF HYPOTHESIS

TABLE 1:

Gender Male Female Total (%)

Newspaper 20 10 30

Radio 8 12 20

T.V 3 7 10

Magazine 20 10 30

Outdoor hoarding 4 6 10

55 45 100

Chi- square calculated value = 8.52

Chi- square table value = 8.488

So,Chi- square calculated value> Chi- square table value

Hence alternative hypothesis is accepted.

34

Table 2:


Agree 25 15 40

Somewhat agree 20 10 30

Neither agree/ disagree 3 7 10

Somewhat disagree 4 6 10

Disagree 3 7 10

55 45 100



So, Chi- square calculated value > Chi- square table value


35

Table 3:


Agree 17 3 20

Somewhat agree 25 15 40

Neither agree/ disagree 3 7 10

Somewhat disagree 8 12 20

Disagree 2 8 10

55 45 100



So, Chi- square calculated value > Chi- square table value


36

Data analysis and interpretation

37

Data analysis and interpretation

Table 1: The retail advertisement has increased in which media?

Outdoor Media
hoarding
10%

Newspaper
30%
Magazine
30%

radio
T.V
20%
10%

From the above chart we can see that retail advertisement has been increased in newspaper
and magazine with 30% each. The result shows that newspaper and magazine are mostly
used media for retail ads.Whereas radio, T.V and outdoor hoarding contributing 20% ,
10% and 10% respectively.

38

Table 2: Retail ads have increased in proportion to company ads

proportion
somewhat disagree
disagree 10%
10%
agree
Neither 40%
agree /
disagree
10%
somewhat
agree
30%

40% of the respondent are agreed that retail ad have increased in proportion to company‟s
ad and 30% are somewhat agree. Rest of the three categories is with 10% each.

Table 3: Due to retail ads, I spend more than I did earlier

39

disagree
Expenditure
10%

somewhat agree
disagree 20%
20%

somewhat agree
40%

neither
agree/disagree
10%

From the above chart it is clear that 40% of the respondent are somewhat agree with their
expenditure has increased due to the effect of retail ads and only 10% disagree with it. Also
20% agree, 20% somewhat disagree and 10% neither agree/ disagree.

Table 4: I look for retail ads in newspaper for special offers

never
seldom 10%
always
10% 40%

occasionally
20%

often
20%

Here we can see that 40% of the respondent look for special offers in newspaper and very
less number of people, (i.e,10%) never look for special offer. 20% of respondent often,
20% occasionally and 10% seldom look for the same.

Table 5: I compare prices shown in retail ads with those given by others

40

compare

never always
10% 20%

often
seldom 20%
40%
occasionally
10%

40% of respondent seldom compare price shown in retail ads but in the other hand 20% always
,20% often , occasionally and never with 10% each.

Table 6: I am able to make better shopping decisions due to information gathered from retail ads

seldom
10% never
10% always
40%
occasionally
10%

often
30%

40% of the respondent said that they always make better shopping decision due to
information gathered from retail ads on the other hand only 10% said never. Whereas
30% of respondent said often, 10% occasionally and seldom each.

41

Table 7: I have membership card of retail

membership card
0% 0%

No
30%

Yes
70%

Above chat shows that 70% of the respondent have membership card and only 30% does not
have it.
Table 8: I don‟t mind gathering membership cards from new retailers

0% 0%

No
40%

Yes
60%

60% 0f the respondent don‟t mind gathering membership card for new retailers whereas 40%
said no.
Table 9: I get SMS /email updates about new sales promotions by retailers

42

never
SMS/email update
10%
seldom
10%
always
40%
occasionally
20%
often
20%

Here 40% of the respondent said that they always get SMS/email updates whereas only 10%
said they never get updates. Also 20% of the respondent said often, 20% occasionally and 10%
seldom about the SMS/ email updates.

Table 10: I always act on the information given in the SMS / email

Sales
seldom
10% never always
10% 20%
often
10%

occasionally
50%

50% of the respondent act on the information given in the SMS/email and 10% each
said seldom, often, never. Also 20% said they always act as per the given information.
43

FINDINGS
CONCLUSION
44

FINDINGS
According to the study undertaken it was found that retail advertisement has seen a

increase in newspaper most of the ads for retail ads are seen in the newspapers.

Newspaper helps the retail company to reach the houses.

Retail ads have increased in last few years in comparison to company ads.

It is to be noted that survey helped to find out that people are spending more after seeing

the advertisement of retail. As highest percentage of the respondent surveyed agreed to

the point that their expenditure has increased after seeing the advertisement.

45

By the survey it was found that people are more concerned with the prices of different

retail, they look for special offers in the ads given by retail companies.

Advertisement with special offers and prices helps the customer to make better shopping

decision for their purchase and customer always pays attention to this type od ads.

It was found that people prefer to make purchase from retails as most of the people are

owning membership card of one or more retail companies.

SMS/ E-mail‘s are new way of promotion adopted by retailers and notable point is that

people feel good and associated when they get SMS or email from retailers and these

types of promotion helps customers to make their purchasing decision.

CONCLUSION

Primary objective of the study was to understand the impact of retail advertising on
customer purchasing decision. Research done on retail advertising served as the
secondary source of data for the project.

Through the study it was found that retail advertising serves as a comparison tool
for customer and also helps customer to make purchasing decision. It was seen that
people are spending more on their expenditure after seeing the advertisement and people
feel connected and interesting through new promotional tools like SMS & E-mail.
Thus it can be said that retail advertisement have a positive impact on customer buying
decision and through advertisement it is seen that people are spending more.

46

LIMITATION OF THE STUDY

47

LIMITATION OF THE STUDY

To carry out the research study the following limitations are faced:

a) Availability of sufficient data from different sources may be difficult.

b) Wrong selection of sample may create of wrong conclusion.

c) Time, cost and factor may cause difficulties.

d) Sample size may not be exact representative of the universe.

However a sincere effort has been put to overcome the expected limitations.

48

References
Anderson P M and Robin L G (1986), Marketing Communications: Advertising, Sales
Promotion, Public Relations, Display and Personal Selling Englewood Cliffs, New Jersey,
Prentice Hall

Andrews Rick L and Currim Imran S (2002), ―Identifying Segments with Identical Choice
Behaviors Across Product Categories: An Inter-category Logit Mixture Model‖,
International Journal of Research in Marketing 19 (1), March, 65-79

Brassington F and Pettitt S (2001): Principles of Marketing , Pearson Education, Prentice Hall

Keller, Kevin L. (1998), Strategic Brand Management: Building, Measuring, and Managing
Brand Equity, Upper Saddle River, NJ: Prentice-Hall.

49

Morschett, Dirk; Swoboda, Bernhard and Foscht, Thomas (2005), ―Perception of store attributes
and overall attitude towards grocery retailers: The role of shopping motives‖, The International
Review of Retail, Distribution and Consumer Research , 15 (4), 423-447.

Nicholas Alexander and Mark Colgate (2005), ―Customers‘ Response to Retail Brand
Extensions‖, Journal of Marketing Management , 21 (3), 393-419.

Website:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=878346



http://papers.ssrn.com/sol3/results.cfm

http://www.oppapers.com/search_results.php?action=search&query=impact+of+retail+adverti
sing

http://www.oppapers.com/essays/Impact-Retail-Intiative-Retailers/158914

http://www.oppapers.com/essays/Impact-Of-Retail-PromotiOns-On-COnsumers/663173

http://www.oppapers.com/essays/Consumer-Response-Utilization-Comparison-Prices-
Retail/138845

http://en.wikipedia.org/wiki/Retailing_in_India

50

http://www.economywatch.com/world-industries/retail-industry.html

51

APPENDIX -1

QUESTIONNAIRE

Dear Sir/Madam

I am Milon Mallick , a student of MBA from ramaiah Institute of management studies,
Bangalore conducting a survey on “ An analysis on retail advertising and its effectiveness
on consumer choice”. I seek your cooperation for providing following relevant information
for my research work. I value your contribution and convey my sincere regards.

Name ………………………………………..

1) Your gender
a) Male b) Female

52

2) Your age in years

3) What is your occupation ?
a) Student b) Employed c) home maker d) business

4) Annual income (in rupees) : ……………………..

5) The retail advertisement has increased in
a) Newspaper
b) Radio
c) T.V
d) Magazine
e) Outdoor hoardings

6) Retail ads have increased in proportion to company ads
a) Agree
b) Somewhat agree
c) Neither agree / disagree
d) Somewhat disagree
e) Disagree

7) Due to retail ads, I spend more than I did earlier
a) Agree
b) Somewhat agree
c) Neither agree / disagree
d) Somewhat disagree
e) Disagree
8) I look for retail ads in newspaper for special offers
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never

53

9) I switch on the radio and pay attention to retail offers
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never

10) I compare prices shown in retail ads with those given by others
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never

11) I am able to make better shopping decisions due to information gathered from retail ads
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never
12) I have membership card of retail
a) Yes b) No

13) I don‟t mind gathering membership cards from new retailers
a) Yes b) No

14) I get SMS /email updates about new sales promotions by retailers
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never

15) I always act on the information given in the SMS / email
a) Always

54

b) Often
c) Occasionally
d) Seldom
e) Never

16) I participate in the lucky draw contest done by retailers
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never
17) I don‟t mind purchasing in advance when I see a good offer in retail ads
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never
18) I wait for retail ads to make my choice of store
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never
19) I compare price and other various deals in retail ads to make my purchase
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never

20) I spend more because of various offers & discounts in retail
a) Always
b) Often
c) Occasionally
d) Seldom

55

e) Never

21) I regret making new purchases on account of retail ads
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never

22) I like retail ads that give information on prices
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never

23) I want retail ads to give better schemes like „buy more for less‟
a) Always
b) Often
c) Occasionally
d) Seldom
e) Never

56

APPENDIX-2

Synopsis for the Project on
―A study on, ―Retail advertising and its impact on consumer choice‖.

”
By
Milon Mallick
Enrolment No. 2491000044

57

For partial fulfillment of the requirements of second year MBA curriculum of Two years Full time
MBA (Industry Integrated) Programmed

Submitted to:

Through

No. 15, New BEL Road, MSRIT Post, MS Ramaiah Nagar,
Bangalore-560054
www.rimsbangalore.in

Project synopsis

Introduction :

Indian Retail Industry is standing at its point of inflexion, waiting for the boom to take place.
The inception of the retail industry dates back to times where retail stores were found in the
village fairs , Melas or in the weekly markets. These stores were highly unorganized. The
maturity 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 India took a new shape.
Outlets for Public Distribution System, Cooperative stores and Khadi stores were set up. These
retail Stores demanded low investments for its establishment.

58

The retail industry in India gathered a new dimension with the setting up of the different
International Brand Outlets, Hyper or Super markets, shopping malls and departmental stores.

The untapped scope of retailing has attracted superstores like Wal-Mart into India, leaving
behind the kiranas that served us for years. Such companies are basically IT based. The other
important participants in the Indian Retail sector are Bata, Big Bazaar, Pantaloons, Archies, Cafe
Coffee Day, landmark, Khadims, Crossword, to name a few.

Future of organized retail in India looks bright. According to recent researches it is projected to
grow at a rate of about 37% in 2007 and at a rate of 42% in 2008. It will capture a share of 10%
of the total retailing by the end of 2010.

1. Title of the problem:

A study on, “Retail advertising and its impact on consumer choice”.

2. Statement of the problem:

Due to the changing trend in the field of advertising as per the launch of lot of me too product.
The advertising is facing a cluttered situation , where many brand try to promote themselves by
similar kind of advertisement. In such case the effectiveness of advertising is critical to impact
the customer purchasing behavior. The pattern, content and frequency of retail adds can have a
direct impact on sales.

3. Objectives:
 To study retail advertising and its impact.
 To find different add strategies that a company can use to avoid clutter.
 To find how advertisement can be made effective.
 To find out what type of advertisement are preferred by the consumer.

4. Significance:

We will be able to find out the impact of retail advertising and what are the measures which
the company should adopt to avoid the clutter and increase consumer choice favorably.

5. Scope:

59

The scope of the study is to evaluate retail advertisement and the effectiveness of various type
of advertisement in the retail sector.

6. Limitation:
 Data collection from consumers in Bangalore only.
 Advertisement will not be shown only recall will be measured.

7. Research methodology:
(d) Type of data sources:
v. Tools of collecting primary data:
 Questionnaire
vi. Sample size: 100 consumers
vii. Sampling data: simple random sampling
viii. Tools of collecting secondary data:
 Books
 Internet
 Magazines
 Journal
(e) Hypothesis :

Null hypothesis (Ho) : Retail advertising has no impact on consumer purchase decision.
Alternative hypothesis (Ha): There is a significant impact of retail advertising on
consumer purchase decision.

(f) Statistical tools for hypothesis testing:

Chi-square test, q- test etc.

8. Conclusion:
On the basis of the research work, I will determine how retail advertisement can help create
positive behavior in consumers.

9. Bibliography:
Books, internet, magazine, journal etc…

60

Project milon

Recommended

Recommended

More Related Content

What's hot

What's hot (18)

Similar to Project milon

Similar to Project milon (20)

Recently uploaded

Recently uploaded (20)

Project milon