A Project Report

On
“Factors Affecting the Purchase of Food and Grocery Products from
Modern Retail Stores”

Submitted in Partial fulfillment of the requirements

for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION (MBA) Guru

Gobind Singh Indraprastha University (Session 2017-2019)

Under the guidance: Submitted by: Annu Gautam

Dr. Samarth Singh MBA 3rd Semester
Associate Professor Roll no. : 41115103917

Management Education and Research

Institute 53-54, Institutional Area, Janakpuri,
New Delhi-110058
 DECLARATION BY THE STUDENT

I Annu Gautam hereby declare that the Project entitled “Factors affecting the
purchase behaviour of food and grocery products from modern retail stores”
has been prepared by me towards the partial fulfilment of requirement of Master
of Business Administration (MBA) Degree under the guidance of Dr. Samarth
Singh.

I also declare that this project report is my original work and has not Benn
previously submitted for the award of any Degree, Diploma, Fellowship, or other
similar titles.

Place: New Delhi Candidate’s signature

Date: ANNU GAUTAM

3
 ACKNOWLEDGEMENT

Many persons have contributed to make this project report on “Factors affecting
the purchase behaviour of food and grocery products from modern retail
stores” a reality. I would especially like to express my appreciation to Dr. Samarth
Singh for his unstinted support, encouragement and his painstakingly and
meticulous effort towards developing this project.

Finally, I wish to express my sincere thanks to all my family members, especially

my Parents for their constant moral support and Encouragement.

I would Welcome Constructive Suggestions to improve this project report, which

can be implemented in my further attempts.

Thanking you!

Annu Gautam
Enrollment No.: 41115103917

4
 TABLE OF CONTENTS

S. No. Topic Page no.

01 INTRODUCTION 8-11

02 LITERATURE REVIEW 12-29

1) Literature review 13
2) Introduction to Investment 14-15
3) Objectives of investment 16-20
4) Investment Process 21-24
25-29
5) Various options available for Investment

03 COMPANY PROFILE 30-36

1) Stallion Capital Management 31
2) Vision Statement 32
3) Mission Statement
4) Products and Services 32
32-33
5) Clients
34
6) Key competitors
35
7) SWOT analysis 36

04 NEED, SCOPE AND OBJECTIVE OF THE STUDY 37-40

05 RESEARCH METHODOLOGY 41-43

06 DATA ANALYSIS, INTERPRETATION AND FINDINGS OF THE 44-62

STUDY
07 CONCLUSIONS AND RECOMMENDATIONS 64-65

08 BIBILIOGRAPHY AND ANNEXURE 66-72

5
 PREFACE

There is a vast difference between theory and practical applicability of

management concepts, principles and theories in any industry. This practical
training program in the course is designed with an objective of bridging the gap
between the theory and practical applicability of management concepts and
theories studied during the MBA program and their applicability in an industry.

I am very fortunate to have an opportunity to undergo my project in on “Stallion

Capital Management”.

This Project training has been indeed a great learning experience which has
provided a lot of exposure regarding corporate functional environment in an
industry. It has been a great pleasure for me to do my project work in such an
esteemed organization.

6
 EXECUTIVE SUMMARY

Retailing is the final step in the distribution of merchandise - the last link in the Supply Chain -
connecting the bulk producers of commodities to the final consumers. Retailing covers diverse
products such as foot apparels, consumer goods, financial services and leisure. The organized
retail sector is expected to grow at 6% by 2010 and touch a retail business of $ 17 billion as
against its current growth level of 3%, which at present is estimated to be $ 6 billion. As India
moves towards the service oriented economy, a rise in this percentage is expected. The number
of the retail outlets is growing at about 8.5% annually in the urban areas and in towns with
population between 1,00,000 to 1 million; the growth rate is about 4.5%. Organized retailing is
witnessing a wave of players entering the industry. These players are experimenting with
various retail formats. Yet, Indian retailing has still not been able to come up with many
successful formats that can be scaled up and applied across India. Some of the notable
exceptions like Reliance Retail & Vishal Mega Mart who scaled their Retail format across the
country.
This research project is undertaken with a view to analyse the trends in the Indian organized
Retail Industry with reference to changing trends in buying behaviour of consumers. The aim is
to understand the effect of increasing income levels of consumers on the organized retail
industry.

purpose of this study is to identify changes and trends in the investment behavior of insurers in
Stallion Capital Management.

This research study is all about the feedback given by respondent on various product and services
of Stallion Capital Management During research there were some criteria of collecting the data
from respondents such as I had to collect the data from the respondents of target segments. I
could not do survey out of sample size To collect the data I had used questionnaire and
observations method.

This project gives us a detailed idea of consumer investment behavior.

By looking at the starting of the project you will find-
 Why should one invest?
 Investment objectives
 Types of investors
 Investment process
 Various financial options available for investment

This project also defines the objective of the study which

includes, To study about investor behavior
Income group level matters while taking decision
Time period for investment
Factors affecting investment decision

The solution to above objectives is provided through a detailed research. After the theoretical part
I have included the research part. A questionnaire has been constructed for collecting primary
data and secondary data through web, newspapers, magazines, company

7
websites etc. Samples of 70 respondents have been approached randomly for eliciting
information, and few column and pie charts are used for analysis and interpretation.

However, the study is subjected to few limitations such as time constraints, and the study is done
only in Delhi where 70 respondents were approached which is also a major limitation. This
research was conducted to analyze the investors need and wants and depending upon the needs,
how could we educate them to not just to rely on traditional investment option but invest on
capital market for investments.

Findings:

 Throughout the research it was observed that most of rural people fear capital market.

 People are trapped by local financial pull investments.

 Some people have some myth about capital market.

 People are happy with their traditional investments.

 People are very much conservatives about their investments Risk tolerance level in rural
people is very low.

This study has given me a lot of practical knowledge about investments and investor’s behavior
towards various products and services, and I have learnt a lot of things from respondents like
giving proper education to investors on investment products either by campaign or mass target
advertisement or through social media platform like You tube, Facebook etc., is the way to make
them participate in India in the capital market.

8
 1.
INTRODUCTION
TO THE STUDY
Retail is the final stage of any economic activity. The word retail is derived from the French
word retaillier, which means to cut off a piece or to break the bulk (Pradhan, 2011). The last
decade has seen an exponential growth in retail across the world, and India is not an exception.
India has been called the ‘nation of shopkeepers’ with around 12 million small shops catering to
209 million of households, with the highest level of retail density of 6% in the world (Ernst and
Young, 2007). The Indian retail industry has become one of the rapidly booming sectors of the
Indian economy, accounting for roughly 15% of GDP of the country (Deloitte, 2013). The retail
sector was valued at US$516 bn in August 2013 and expected to reach at $866 bn by 2015
(Deloitte, 2013). According to Deloitte, the development of retail is not only in major cities and
metros, but also in smaller cities and towns. But still the Indian retail market is in its nascent
stage, and 92% market share is controlled by unorganized players. Indian retail sector is
experiencing a paradigm shift from the unstructured, fragmented, low-cost operating and small
unorganized kirana store to the organized store. The rapidly changing lifestyle, tastes and
preferences of Indian consumers, demographics, and rise in consumption are the major
contributing factors to the growth of modern retail. The organized retail format is expanding at
20% per year, driven by the emergence of shopping centers and malls and growing middle class.
In 2010, the larger format of retail accounted for about 4% of the industry and expected to grow
at almost 30% by 2015 (Deloitte, 2013). The enormous growth potential of this industry has
attracted huge investments from major domestic corporate houses like Tata, Birla, Reliance,
Spencer’s, Future Group, etc. and a new form of organized retail has emerged in the past few
years. The retail market of India, both organized and unorganized taken together, is likely to
grow at a CAGR of 5.5%, whereas the organized retail is growing at 20% (Deloitte, 2013). The
blistering pace of organized retail is a clear indication that it is overshadowing the unorganized
sector.

Every business conducted for the purpose of selling or offering for sale any goods, wares, or
merchandise, other than as a part of a "wholesale business" to the final consumer can be defined
as retail business.
Retail is the second-largest industry in the United States both in number of establishments and
number of employees. The U.S. retail industry generates $3.8 trillion in retail sales annually
($4.2 trillion if food service sales are included), approximately $11,993 per capita. The retail
sector is also one of the largest worldwide.
Wal-Mart is the world's largest retailer and the world's largest company with more than $312
billion (USD) in sales annually. Wal-Mart employs 1.3 million associates in the United States
and more than 400,000 internationally. The second largest retailer in the world is France's
Carrefour.

WHAT IS RETAILING?
Retailing is all the activities involved in selling goods and services directly to final consumers
for their personal, non-business use.
The word retail is derived from the French word retailer, meaning to cut a piece off or to break
bulk. A retailer buys goods or products in large quantities from manufacturers or importers,
either directly or through a wholesaler, and then sells individual items or small quantities to the
general public or end user customers, usually in a shop, also called store. Retailers are at the end
of the supply chain. Marketers see retailing as part of their overall distribution strategy.

TYPES OF RETAILING
Retailing can be classified under two heads:
Store Retailing
Non-store Retailing

Store Retailing
Retail stores come in a variety of shapes and sizes, and new retail types keep emerging. They can
be classified by one or more of several characteristics:
Amount of service
Product line
Relative prices
Control of outlets

Type of store cluster

1) AMOUNT OF SERVICE
Different products require different amounts of service, and customer service preferences vary:
Self-service retailers
Customers are willing to perform their own "locate-compare-select" process to save money.
Today, self-service is the basis of all discount operations, and typically is used by sellers of
convenience goods (such as supermarkets) and nationally branded, fast moving shopping goods
(such as catalog showrooms).

Limited service retailers

Retailers such as Sears and J. C. Penney, provide more sales assistance because they carry more
shopping goods about which consumers need information. Their increased operating costs result
in higher prices.
Full service retailers
Like specialty stores and first-class department stores, have salespeople to assist customers in
every phase of the shopping process. Full service stores usually carry more specialty goods for
which customers like to be waited on. They provide more liberal return policies, various credit
plans, free delivery, home servicing, and extras such as lounges and restaurants.

2) PRODUCT LINE:
Retailers can also be classified by the depth and breadth of their product assortments. The depth
of a product assortment refers to the number of different versions of each product that are offered
for sale. The breadth of the assortment refers to the number of different products that the store
carries.
Specialty stores carry a narrow product line with a deep assortment within that line. Examples
include stores selling sporting goods, books, furniture, electronics, flowers, or toys. Today,
specialty stores are flourishing, due to the increasing use of market segmentation, market
targeting, and product specialization.
A department store carries a wide variety of product lines. Each line is operated as a separate
department managed by specialist buyers and merchandisers.
Supermarkets are large, low-cost, low-margin, high-volume, self-service stores that carry a wide
variety of food, laundry, and household products.
Convenience stores are small stores that carry a limited line of high-turnover convenience goods.
These stores located near residential areas and remain open long hours, seven days a week.
Convenience stores must charge high prices to make up for higher operating costs and lower
sales volume, but they satisfy an important consumer need.
Superstores, combination stores, and hypermarkets are all larger than the conventional
supermarket. Many leading chains are moving toward superstores because their wider assortment
allows prices to be 5-6% higher than conventional supermarkets'. Combination stores are
combined food and drug stores. Examples are A&P's Family Marts and Wal-Mart's Super
centers. Hypermarkets combine discount, supermarket, and warehouse retailing, and operate like
a warehouse

3) RELATIVE PRICES
Retailers can also be classified by the prices they charge. Most retailers charge regular prices and
offer normal quality goods and customer service. Some offer higher quality goods and service at
higher prices. Retailers that feature low prices include:
Discount stores sell standard merchandise at lower prices by accepting lower margins and selling
higher volume. Occasional discounts or specials do not make a store a discount store. A true
discount store regularly sells its merchandise at lower prices, offering mostly national brands, not
inferior goods.
4) CONTROL OF OUTLETS:
About 80% of all retail stores are independents, accounting for 2/3 of retail sales. Other forms of
ownership include the corporate chain, the voluntary chain and retailer cooperative, the franchise
organization, and the merchandising conglomerate.
The chain store is one of the most important retail developments of this century. Corporate
chains appear in all types of retailing, but they are strongest in department, variety, food, drug,
shoe, and women's clothing stores. The size of corporate chains allows them to buy in large
quantities at lower prices, and chains gain promotional economies because their advertising costs
are spread out over many stores and over a large sales volume.
The voluntary chain is a wholesaler-sponsored group of independent retailers that engages in-
group buying and common merchandising.
The retailer cooperative is a group of independent retailers that set up a jointly- owned central
wholesale operations and conduct joint merchandising and promotion efforts.
A franchise is a contractual association between a manufacturer, wholesaler, or service
organization (the franchiser) and independent businesspeople (the franchisees) who buy the right
to own and operate one or more units in the franchise system.
Merchandising conglomerates are corporations that combine several different retailing forms
under central ownership and share some distribution and management functions. Examples
include Dayton-Hudson and J. C. Penney.

5) TYPE OF STORE CLUSTER:

Most stores today cluster together to increase their customer pulling power and to give
consumers the convenience of one-stop shopping:
Central business districts A central business district comprises of banks, department stores,
specialty stores, and movie theatres.
A shopping center is a group of retail businesses planned, developed, owned, and managed as a
unit.
Non-Store Retailing
Although most goods and services are sold through stores, non-store retailing has been growing
much faster than store retailing.
Traditional store retailers are facing increasing sales competition from catalogs, direct mail,
telephone, home TV shopping shows, on-line computer shopping services, home and office
parties, and other direct retailing approaches.
Non-store retailing includes direct marketing, direct selling, and automatic vending.

INDIAN RETAIL INDUSTRY

Retailing in India is one of the significant contributors to the Indian economy and accounts for
35% of the GDP. However, this sector is in a fragmented state with over 12 million outlets
operating in the country and only 4% of them being larger than 500 sq ft in size. This is in
comparison to 0.9 million outlets in USA, catering to more than 13 times of the total retail
market size. Thus, India has the highest number of outlets per capita in the world with a widely
spread retail network but with the lowest per capita retail space (@ 2 sq ft per person as
compared to 16 sq ft per person for USA).
The Indian retailing industry is currently estimated at $205 b (Rs.930, 000 Crores) and is
expected to grow at 5% p.a. The current size of the organized retailing market is $6 b (Rs.28,000
Crores), thereby, a mere 3% of the total retailing market with a projected growth rate of 25 –
30% p.a. and is estimated to become $8 b (Rs.35,000 Crores) by 2005 and $24 b (Rs.100,000
Crores) by 2010, with its contribution to total retailing sales likely

Formats adopted by the Retail Players in INDIA.

Retailer Original formats Later Formats

Hypermarket (Spencer's)Specialty Store (Health and
RPG Retail Supermarket (Foodworld)
Glow)
Department Store
Piramal's Discount Store (TruMart)
(Piramyd Megastore)
Small format outlets
(Shoppe) Supermarket(FoodBAZAR)
Pantaloon Retail
Department Store Hypermarket (Big Bazaar) Mall (Central)
(Pantaloon)
Department Store
(shopper's stop) Supermarket
K Raheja Group
Specialty Store Hypermarket (TBA)
(Crossword)
Department Store
Tata/ Trent Hypermarket (Star India Bazaar)
(Westside)
Department Store
Landmark Group Hypermarket (TBA)
(Lifestyle)
Discount Store (Subhiksha, Margin Free, Apna Bazaar), Supermarket (Nilgiri's),
Others
Specialty Electronics
11
 2.
Literature Review

12
Literature Review:
Several attributes have been identified in the retail and marketing literature as reasons for store
patronage and choice.
Mathew Joseph and Manisha Gupta_September 2008: The Indian retail sector is booming and
modernizing rapidly in line with India’s economic growth. In this review the author talked about
the impact of organized retailing on traditional retailing. With the increase in number of various
formats for shopping like malls, departmental stores, hypermarkets etc the Indian consumer’s
preferences are changing towards and that’s the reason foreign investors like the king of retail
Wal-Mart also came into the Indian retail ground in collaboration with Bharti. There is a huge
untapped market is present in India right now which contains a number of opportunities for
retailers.

Sen-2000: Store Image and Consumer Shopping Habits: Indian Context: In India, some
empirical studies provide important information about consumer behavior and its responses to
the development of organized retail. Economical and social changes are major contributors for a
growing fragmentation of consumers into multiple segments with different values and buying
priorities. Consumers have become more pragmatic, educated and demanding, learning how to
manage money and time more efficiently. The focus on low prices was gradually replaced by a
value for money perspective. The study developed by ETIG (Economic Times Intelligence
Group, 2002) confirms these tendencies. Concerning food, the most important attribute
mentioned was quality, followed by price. Indian consumer has different reasons for preferring
different store formats, either modern or traditional; Sen (2000) confirms this in the study
undertaken in Indian context. He confirms that in the case of hypermarkets, the main motives for
preferences, in decreasing order are low prices, the possibility of buying everything in the same
place and the general appearance of the store. Several investigations emphasize the possible
coexistence of different store formats (Chandrasekhar, 2001) and others point out the relationship
between the type of store and the type of products. These studies show that, while specialized
and traditional stores are preferred for fresh products, hypermarkets are preferred for shopping in
general, and also for frozen food, groceries and beverages. The purchase of perishables in
hypermarkets is reduced.

Radhakrishnan, 2003: Traditional Retailers Perceptions about Organized Retail

As already mentioned, organized retail has deeply changed the Indian commercial structure.
However, it is not exclusively responsible, as other changes (economical, social and cultural
ones) have occurred simultaneously. Concerning the more direct effects of organized retail on
different types of commerce, it is possible to verify that the major impact is felt on traditional
retail and, in particular, on the food sector. The impact of organized retail is also significant on
other types of retail, namely toys, stationery goods and household appliances; moreover, it is
probable that competition gets more intense in other sectors, such as clothing and furniture.

RNCOS (March 15, 2009/24-7 press releases): Increasing trend of organized retailing will drive
the growth of convenience-store industry in the world. By 2011, Asia remains the fastest growing
convenience store market in the world as the major Asian retail markets registered explosive
growth in opening up of new convenience store. Changing consumer preferences, lifestyle and
rising income level, which is heavily influenced by economic growth, remains the major driving
force for c-store industry in the Asian region. as per "Global Convenience Store Market
Analysis".
Martineau (1958) categorized store attributes into two main categories: functional and
psychological. The functional category includes attributes such as location, assortment of
products and store layout. The psychological category represents the feelings generated by the
functional elements of the store. The former category has gained more attention in the
subsequent research into store choice than the latter.

Fisk (1961) identified six attributes as the most important: location accessibility, merchandise
suitability, value for price, sales efforts and store service.
In their study of department stores in Arizona, Kunkel and Berry (1968) proposed a twelve-factor
scheme which includes price of merchandise, quality, assortment, fashion of merchandises,
sales personnel, sales promotion, advertising, store atmosphere, locational accessibility,
service, reputation on adjustments and other accessibility factors. In a subsequent study, Berry
(1969) identified three general factors that predominantly influenced consumer's store choice
regardless of store type: namely, quality and variety of merchandise, sales staff, and store
atmosphere.
A prominent and widely-cited work on the topic of store image was that of Lindquist (1974).
Based on a review of 19 research articles, he synthesized the framework of these studies into a
set of nine groups: merchandise, service, clientele, physical facilities, promotion, accessibility,
store atmosphere, institutional and post-transaction satisfaction.

Doyle & Fenwick (1975), propose that price, product variety, one-stop shopping, quality,
location of the store, advertisement, general appearance of the store and convenience are some of
major attributes looked upon by the consumers while evaluating a grocery store.

Bearden (1977) distinguished seven attributes as potentially significant for store patronage: price,
quality of merchandise, assortment, atmosphere, location, parking facilities and friendly staff.
Arnold et al. (1983) extended the accessibility attribute to the ease of mobility through the store
and fast checkout

Mason, Mayer, & Ezell, 1994 proposed that Reasonable prices in a retail store induce
customer satisfaction as well as building customer loyalty. In the retailing sector, the store having
reasonable prices will often capture a large market share

Hasty and Reardon (1997) classified store attributes into three general categories: accessibility
(e.g., location, layout, appearance, and knowledgeable staff), facilitation of sales (e.g., low-
priced specials, promotional offers and methods of payments accepted) and auxiliary attributes
(e.g., play areas for children and food court).

Wong & Sohal, (2003) compared the relationship between dimensions of service quality and
customer loyalty in a retail chain departmental store located in a city to that of a country. The
results showed that service quality is positively associated with customer loyalty, and that the
most significant predictor of customer loyalty in the city retail district is empathy, while the most
significant predictor of customer loyalty in the country retail district is tangibles.

Solgaard and Hansen (2003) identified several store attributes that were considered important for
the consumer's evaluation of stores. These attributes include merchandise, assortment,
merchandise quality, personnel, store layout, accessibility, cleanliness and atmosphere.

Spiller Bolten and Kennerknecht (2006) identify service and product quality as main
determinants of customer satisfaction. They propose that customers consider freshness of fruits
and vegetables` as the quality of whole assortment.
 3.
COMPANY
PROFILE

30
36
 4.

NEED, SCOPE

AND

OBJECTIVES OF THE
STUDY

37
Objective

1. Identify the factors influencing the consumers buying behaviour in organized food and
grocery retail
2. Offer suggestions to organized retailers so that they can enhance their services to
consumers

NEED OF THE STUDY

The need of the study was to fill the gap that was identified in the previous researches. The
researchers conducted earlier lay emphasis on the working of investment behavior in
stallion capital management. Considering the ample importance of this aspect, the present
study was conducted to study the behavior of investors and determine their awareness level
regarding various investment avenues available in Stallion Capital Management.
This analysis on Individual Investors’ Behavior is an attempt to know the profile of the investor
and also know the characteristics of the investors so as to know their preference with respect to

38
their investments. The study also tries to unravel the influence of demographic factors like
age on risk tolerance level of the investor.

SCOPE OF THE STUDY

The project will give an idea about the investment behavior of the investors in Stallion Capital
Management. It will guide them in creating strategies for sales force to target their potential
customers .Questionnaire developed for the survey will help the stallion managers to identify its
potential customers for a particular product. The study will also guide them to identify the need
of the future generation and their investment styles which will help in the development of the
product or service for this generation.

The scope of the study was limited to Delhi.

39
 5.
RESEARCH
METHODOLOGY

40
 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. The Research
Methodology includes the various methods and techniques for conducting a research. Research is
an art of scientific investigation. In other word research is a scientific and systematic search for
pertinent information on a specific topic. The logic behind taking research methodology into
consideration is that one can have knowledge about the method and procedure adopted for
achievement of objective of the project.

Sampling technique
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot
study was undertaken in order to know the accuracy of the questionnaire. The final questionnaire
was arrived at only after certain important changes are incorporated. Convenience sampling
technique used for collecting the data from different investors. The respondents are selected by
the convenience sampling method. The selection of units from the population based on their easy
availability and accessibility to the researcher is known as convenience sampling. Convenience
sampling is at its best in surveys dealing with an exploratory purpose for generating ideas and
hypothesis.

Sampling unit:
The respondents who are asked to fill out the questionnaires are the sampling units. These
comprise of employees of MNC’s, government employees, unemployed, students and others.

Sampling size:
The sample size is restricted to only 70, which comprised of mainly people from different
regions of Delhi due to time constraints.

Sampling area:
The area of the research is Delhi.

41
 SOURCES OF INFORMATION

Primary Data:
Information is collected by conducting a survey by distributing a questionnaire to 70
customers in Delhi. These 70 customers are of different age group, different occupation, different
income levels, and different qualifications.

Secondary Data:
This data is collected by using the following means.
1. Articles in Financial Newspapers (‘Economic times’ and ‘Business Standard’).
2. Investment Magazines, Business Magazines, Financial chronicles.
3. Expert’s opinion published in various print media.
4. Books written by various Foreign and Indian authors on Investments.
5. Data available on internet through various websites

Tools of Presentation & Analysis:

To analyze the data obtained with the help of questionnaire, the SPSS 18 Window was used in
analysis.
1. Factor analysis (Malhotra ana Dash, 2007), a widely used multivariate technique was
used to determine the major factors that customers keep in mind while purchasing food and
grocery products from modern retail outlet.
2. Adequacy of data was tested using Kaiser meyer olkin(KMO) measures of sampling
adequacy. High value(between 0.5 and 1) indicate that the data is adequate and factor analysis is
appropriate.
3. Bartlett’s test of sphericity was used to test the hypothesis that the variables are
uncorrelated with the population.
4. Rank score analysis done to determine the most important factor among the various
factors analysed.
42
LIMITATIONS OF STUDY

 Due to lack of time and resources a countrywide survey was not possible. Hence only
Delhi city has been taken for the study.
 Since a smaller sample was chosen so it may not be a true representative of the
population under study.
 Most of the study was restricted to Internet and published data because of the non-
availability of primary data.
 The information given by the respondents might be biased because some of them might
not be interested to given correct information.
 Some of the respondents of the survey were unwilling to share information.

43
 6.

ANALYSIS,
INTERPRETATION
 1. Gender
Cumulative
Frequency Percent Valid Percent Percent
Valid 1 1.0 1.0 1.0
Female 48 47.1 47.1 48.0
Male 53 52.0 52.0 100.0
Total 102 100.0 100.0

ANALYSIS:
From the above graph, it is observed that out of 102 respondents living in Delhi, 53 are male
and 73 are female.

2. Age(in years)
Cumulative
Frequency Percent Valid Percent Percent
Valid 26-35 25 24.5 24.5 24.5
36-45 14 13.7 13.7 38.2
45-60 8 7.8 7.8 46.1
above 60 4 3.9 3.9 50.0
less than 25 51 50.0 50.0 100.0
Total 102 100.0 100.0
ANALYSIS:
From the above graph, it is observed that the majority of respondents are in the age group of
less the 25.

3. Marital Status
Cumulative
Frequency Percent Valid Percent Percent
Valid Married 41 40.2 40.2 40.2
Unmarried 61 59.8 59.8 100.0
Total 102 100.0 100.0

ANALYSIS:
From the above graph it is observed that 41% of the respondents are married and 61%
of the respondents are unmarried.

4. Educational Qualification
 Cumulative
Frequency Percent Valid Percent Percent
Valid 2 2.0 2.0 2.0
Graduate 41 40.2 40.2 42.2
Higher Secondary 26 25.5 25.5 67.6
PG and Above 26 25.5 25.5 93.1
Secondary 7 6.9 6.9 100.0
Total 102 100.0 100.0

ANALYSIS:
From the above graph it is observed that majority of the respondents are
graduate.
5. Occupation

Cumulative
Frequency Percent Valid Percent Percent
Valid corporate employee 27 26.5 26.5 26.5
Government Employee 13 12.7 12.7 39.2
Others 8 7.8 7.8 47.1
Student 39 38.2 38.2 85.3
unemployed 15 14.7 14.7 100.0
Total 102 100.0 100.0
ANALYSIS:
From the above graph it is observed that the majority of the respondents are students.

6. Family Income(in Rs/month)

Cumulative
Frequency Percent Valid Percent Percent
Valid 15001-25000 15 14.7 14.7 14.7
35001-50000 42 41.2 41.2 55.9
50001 and above 34 33.3 33.3 89.2
less than 15000 11 10.8 10.8 100.0
Total 102 100.0 100.0

ANALYSIS:
 From the above graph it is observed that the maximum respondents fall under income group
of 35000-50000.

7. Residential Area
Cumulative
Frequency Percent Valid Percent Percent
Valid In the city 67 65.7 65.7 65.7
outskirt of the city 12 11.8 11.8 77.5
suburban area of the city 15 14.7 14.7 92.2
Village 8 7.8 7.8 100.0
Total 102 100.0 100.0

ANALYSIS:
From the above graph it is observed that the majority of the respondents live in the city.

8. How frequently do you visit organized retail outlet?

Cumulative
Frequency Percent Valid Percent Percent
Valid more than once in a week 19 18.6 18.6 18.6
once in a fortnight 5 4.9 4.9 23.5
once in a month 29 28.4 28.4 52.0
once in a week 25 24.5 24.5 76.5
only on festival/occasion 12 11.8 11.8 88.2
Rarely 12 11.8 11.8 100.0
Total 102 100.0 100.0
ANALYSIS:

From the above graph it is observed that majority of the respondents visit retail outlets once in a
month.

9. From where would you prefer to buy products?

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 1.0 1.0 1.0
Factory outlet 6 5.9 5.9 6.9
Local Big Retail store 21 20.6 20.6 27.5
Multi brand store 62 60.8 60.8 88.2
Single brand store 12 11.8 11.8 100.0
Total 102 100.0 100.0
ANALYSIS:
From the above graph it is observed that majority of the repondents prefer to buy products
from multi brand store.

10. Out of these FMCG retail outlets where do you generally purchase
from?
Cumulative
Frequency Percent Valid Percent Percent
Valid Big Bazaar 35 34.3 34.3 34.3
Chaurasia 1 1.0 1.0 35.3
Easy Day 14 13.7 13.7 49.0
Jain 1 1.0 1.0 50.0
Rainbow fashion 1 1.0 1.0 51.0
Ratnadeep 1 1.0 1.0 52.0
Reliance Super 19 18.6 18.6 70.6
Shri raam store 1 1.0 1.0 71.6
Single branded shops 1 1.0 1.0 72.5
Vishal Mega Mart 28 27.5 27.5 100.0
Total 102 100.0 100.0

ANALYSIS:
From the above graph it is observed that majority of the repondents generally purchase from
Big Bazaar.
 11. What type of items do you shop in retail stores?
Cumulative
Frequency Percent Valid Percent Percent
Valid 1 1.0 1.0 1.0
Clothes/Accessories/Shoes 43 42.2 42.2 43.1
Food and Beverage 55 53.9 53.9 97.1
Toys 3 2.9 2.9 100.0
Total 102 100.0 100.0

ANALYSIS:
From the above graph it is observed that majority of the respondents prefer to buy food and
beverages from modern retail outlets.
II. FACTOR ANALYSIS

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .920
Bartlett's Test of Sphericity Approx. Chi-Square 1564.162
Df 190
Sig. .000

ANALYSIS:
The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy is obtained as 0.920, which is
greater than 0.5. this suggests that the factor analysis is appropriate.

Communalities
Initial Extraction
Product Availability 1.000 .770
Brand Availability 1.000 .777
Quality of Products 1.000 .759
Display of Products 1.000 .696
One-stop Shopping 1.000 .729
Enjoy 1.000 .682
Touch and Feel 1.000 .692
Internal Atmosphere 1.000 .648
Retailer's Name 1.000 .774
Advertisement 1.000 .766
Price 1.000 .746
Offer and Discount 1.000 .757
Sales Staff 1.000 .810
Fast Complain Handling 1.000 .671
Fresh Fruits and Vegetables 1.000 .752
Near to Home 1.000 .774
Availability of New Products 1.000 .711
Flexible Mode of Payments 1.000 .765
Value-Added Services 1.000 .820
Parking Facility 1.000 .686
Extraction Method: Principal Component Analysis.

ANALYSIS:
Communality is the amount of variance that the original variable shows with all other
variables included in the analysis. Large communality indicates that large amount of variance in
the variables has been accounted for by the factor solution.
 Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Load
Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cu
11.040 55.201 55.201 11.040 55.201 55.201 4.417 22.086
1.547 7.733 62.935 1.547 7.733 62.935 3.810 19.049
1.167 5.837 68.772 1.167 5.837 68.772 3.711 18.554
1.030 5.150 73.922 1.030 5.150 73.922 2.847 14.233
.816 4.078 78.001
.550 2.752 80.753
.513 2.564 83.316
.495 2.476 85.792
.446 2.230 88.022
.337 1.683 89.705
.311 1.554 91.259
.299 1.494 92.753
.268 1.339 94.092
.229 1.146 95.238
.210 1.050 96.288
.203 1.013 97.300
.167 .836 98.136
.149 .747 98.884
.131 .656 99.540
.092 .460 100.000
ethod: Principal Component Analysis.
 Rotated Component Matrixa
Component
1 2 3 4
Sales Staff .819
Value-Added Services .800 .385
Fast Complain Handling .716 .335
Retailer's Name .663 .422 .393
Availability of New Products .573 .373 .460
Advertisement .548 .445 .512
Brand Availability .326 .788
Quality of Products .735 .324
Product Availability .734 .378
Display of Products .628 .413
Touch and Feel .463 .522 .449
Flexible Mode of Payments .848
Enjoy .719
Parking Facility .715
Offer and Discount .457 .590 .434
Internal Atmosphere .426 .394 .427 .358
Near to Home .807
Fresh Fruits and Vegetables .467 .639
Price .508 .371 .556
One-stop Shopping .435 .515 .522
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 8 iterations.
 FINDINGS

 Majority of consumers are below 25 years of age. Young consumers seek entertainment,
therefore the organized retailers should make provisions for entertainment and
amusement program to delight the young so that they spend more time in the outlet.
 Retailers should focus on convenience of shopping to attract large number of customers,
especially customers above 50 years of age as in the city like Delhi, this category of
consumers is the decision maker in purchasing.
 Retailers should take care of proper display of the products to avoid inconvenience to
customers.

62
 7.

CONCLUSION AND
RECOMMENDATIONS

63
 CONCLUSION

Indian organized retail industry has registered a tremendous success with major corporate
players contending for their share in the retail segment. The growth in retail got accelerated after
the entry of big corporate houses and increasing disposable income of consumers. Despite the
growth, the organized food and grocery retailers are facing challenges from the unorganized
kirana stores. Considering the importance of food and grocery retail in Indian market, the study
attempted to investigate the major factors influencing customer’s decision to purchase from
modern retail outlets.
The result of the study reveal that seven factors influence the shoppers’ preference to purchase
from organized food and grocery retail outlets. Convenience of shopping emerges as the most
important factor. Further, the study reveals that the customers are also influenced by the factor,
customer assistance, which the manager can improve by enhancing the quality of services.
Factors like ambience, brand image, proximity and value added services also have high impact
on the consumer’s decision to purchase from modern retail outlets. Finally the result reveal that
shoppers also attribute affordable prices of the products as a factor for their strong shopping
motives. The findings of the paper provide good insights for the organized retailers and decision
makers to frame retail strategies keeping in mind the changing needs of the shoppers.

64
 RECOMMENDATIONS

On the basis of the results, the following suggestions are made that the organized retailers should
keep in mind while designing retail strategies:

 Retailers should focus on convenience of shopping to attract large number of customers,

especially customers above 50 years of age as in the city like Delhi, this category of
consumers is the decision maker in purchasing.
 Retailers should take care of proper display of the products to avoid inconvenience to
customers.
 Parking facility provided by the mall should be free of charge or at minimal charge and
hassle-free.
 Organized retailers should train their staff to assist the customers, especially at the time of
higher customers’ traffic like in festive season and offer and discount time.
 Price slip tagged at the shelf should be up-to-date for consumers’ convenience.
 Retailers should have optimum number of payment counters so that customers spend less
time in waiting for billing and spend more time on shopping.
 Retailers should have proper feedback mechanism, wherein customers can share their
shopping experience, whether good or bad, and wherever applicable remedial measures
should be taken by the retailer.
65
 8.

BIBLIOGRAPHY

AND
ANNEXURE
 BIBLIOGRAPHY

Books & Research Papers:

 Goswami. P and Mishra. M, 2009, Would Indian consumers move from kirana store to
organized Retailers when shopping for groceries, Asia Pacific Journal of Marketing and
Logistics, Vol. 20, No. 1
• ICRIER journal paper, September 2008
http://ssrn.com/abstract=994238

BOOKS:-
• Marketing Management. ----Kotler & Keller
• Marketing Management in Indian Perspective----V. S. Ramaswamy & S. Namakumari
• Retail management ---Levy & Weitzs

Web Sites:

 www.emraldinsight/1355-5855.htm
 www.Fibre2fashion.com/industry-article
 www.tataretail.com
 www.retailindia.net
 www.retailyatra.com
 www.retailbiz.com
 www.aboutus.com
 www.businessworld.in
  ANNEXURE
• Name of the Respondent

1. Sex
• Male
 Female
2. Age Group
 Less than 25
 26-35
 36-45
 45-60
 Above 60
3. Marital Status
 Married
 Unmarried
4. Education Qualification
Secondary
Higher secondary
Graduate
PG and above
5. Occupation
• Student
• Government Employee
• corporate employee
• unemployed
• others
6. Family Income(in Rs/month)
• less than 15000
• 15001-25000
• 35001-50000
• 50001 and above
7. Residential Area
• In the city
• outskirt of the city
• suburban area of the city
• village
8. How frequently do you visit organized retail outlet?
• more than once in a week
• once in a week
• once in a fortnight
• once in a month
• only on festival/occasion
• rarely
9. From where would you prefer to buy products?
• Single brand store
• Multi brand store
• Factory outlet
• Local Big Retail store
10. Out of these FMCG retail outlets where do you generally purchase from? *
• Reliance Super
• Easy Day
• Vishal Mega Mart
• Big Bazaar
• Other:
11. What type of items do you shop in retail stores?
• Food and Beverage
• Clothes/Accessories/Shoes
• Toys
• Electronics/Software
• Other:
II. Different statements are given below. Please read the statements carefully and indicate your opinion in the
corresponding category below. Please select against each statement.

Strongly Neither Agree Strongly

DIMENSION Agree Agree nor disagree Disagree Disagree

You prefer to shop

from organized
retail stores
because of wide
range of product
availability.

You prefer to shop

from organized
retail stores
because of wide
range of brand
availability.

You prefer to
shop from
modern retail
stores because
of good quality
of products.

You prefer to
shop from
modern retail
stores because
products are
displayed
properly.

You prefer to shop

from modern retail
stores because
family shopping is
possible under one
roof.

You prefer to
shop from
modern retail
stores because
you enjoy the
shopping.

You prefer to
shop from
modern retail
stores because
you can touch
and feel the
products.

You prefer to
shop from
modern retail
stores because
you love the
internal
atmosphere and
ambience.

You prefer to
shop from
organized retail
stores because
the name of
retailer is
trustworthy

You prefer to
shop from
organized retail
stores because
advertisements
are attractive.

You prefer to
shop from
organized retail
stores because
they charge
 reasonable
price.

You prefer to shop

from modern retail
during discount
offers
You go to
shopping malls
since sales
executives are very
helpful
You shop from
modern retail
stores because
it always keeps
fresh fruits and
vegetables.

you shop from

modern retail
stores because
it near to your
home.

You shop from

modern retail
stores because
different types
of new
products are
available.

You shop from

modern retail
stores because
of payment
flexibility.

You shop from

modern retail
stores because
of VAS.
You shop from
modern retail
stores because of
good parking
facility.