study on consumer behavior and buying preferences in india
TRANSCRIPT
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
1/25
Study of the Impact of Store Environment and Discounts/Offers on
Consumer Shopping Behaviour
A Research Report Sumitted in !artia" #u"fi"ment for the Degree of $asters inBusiness Administration
Sumitted By%
Avee Saroya E&'(Ashish Behara E&')Soumyasundar Sanya" E&**+ignesh Sri,ant E&*-
S.$BIOSIS IS0I010E O# $AA2E$E0 S01DIES
S.$BIOSIS I0ERA0IOA3 1I+ERSI0.4 !1E
Octoer ()'*
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
2/25
Acknowledgement
5e ta,e this opportunity to e6press our gratitude to the peop"e 7ho have een instrumenta" in
the successfu" comp"etion of this pro8ect9
5e are e6treme"y than,fu" to !rofessor Dr Asha agendra4 the 2uide of this pro8ect9 She has
guided us on this research and correcting various documents and amending them 7ith
attention and care9 She has ta,en pain to go through the pro8ect and ma,e necessary
correction as and 7hen needed at each and every step9
5e e6press our than,s to the Director of Symiosis Institute of $anagement Studies4 !une
for e6tending his support9
5e 7ou"d "i,e to sho7 our greatest appreciation for the support e6tended to us y the
respondents4 7hich 7as vita" for the success of the pro8ect9
5e are a"so than,fu" to a"" my friends and a"so to various parents for their ,ind and
va"ua"e guidance4 7hom 7e consu"ted for the research 7or,9
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
3/25
Table of Contents
So Chapters !age o
' Introduction
( Revie7 of 3iterature
: $ethodo"ogy
* Resu"ts
; Summary
< Conc"usion
- Bi"iography
= Appendi6
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
4/25
List of Tables
S No Table Heading Page No.
' 2enera" Information of respondents
( #re>uency of purchase of househo"d goods
: !reference of ,no7ing shop,eeper at a persona" "eve"
* Capacity of refrigerators used y respondents
; !reference of randed foods over "oca""y manufacturedfood items
< Appea" of rand name ?5a"&$art@ over Indian retai" stores
- Response to acceptance of 5a"&$art amongst Indian
customers
= Response to 7hether #DI is good for Indian economy
Appea" of 5a"mart in association 7ith Bharti appea"ing
more than 5a"mart a"one
') Response to discounts attracting consumers
'' Response to "arge vo"ume discounts attracting consumers
'( Response to Indian Consumers preferring #resh food items
compared to pac,aged food
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
5/25
List of Figures
S No Figure Heading Page No' Appea" of rand name 5a"mart more over Indian retai" stores
(Response to acceptance of 5a"mart amongst Indian
consumers
: Response to #DI eing good for the Indian Economy
* Response to "arge vo"ume discount attracting consumers
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
6/25
Abstract
In order to ana"ye the impact of 5a"&$art store on the uying ehaviour of customers4 a
study 7as conducted on ')) respondents of different income ands and age groups at various
"ocations9 0he focus of the study 7as to see ho7 a customer ehaves 7ith respect to va"ue
added y high discounts on "arge vo"ume purchases9 In addition to an a""&inc"usive store the
study 7as a"so done to find out 7hether a customer@s uying decision is impacted y the
distance to the store and the attractiveness of "arge vo"ume processed foods in and Indian
ecosystem9 Based on these factors a >uestionnaire 7as prepared and f"oated amongst peop"e
and their response 7as recorded9 It has een oserved that though the idea of the 5a"&$art
mode" for customers generates interests4 they are yet not fu""y oriented to such a super store
7ith the constraints it rings of distance and insistence of "arge vo"umes9
Keywordsvo"ume discounts4 5a"&$art4 super&stores4 customer4 uying decision
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
7/25
CHAPT!" #
$ntroduction
5a" $art 7ith its everyday "o7 prices phi"osophy has enefited mi""ions of consumers9 In
ear"y ());4 5a" $art4 the 7or"ds "argest retai"er proposed to e6pand its usiness into India4
7hich is the 7or"ds *th "argest retai" mar,et in the 7or"d9 Indias '=) i""ion retai" mar,et
7as a potentia" opportunity for 5a" $arts g"oa" e6pansion9 Fo7ever efore the entry into
the Indian mar,et it faced cha""enges "i,e the strict #oreign Direct Investment regu"ations4
competition from the unorganised retai" sector Gconstituting =H of Indias retai" sector and
the gro7ing organised retai" sector9 5a" $art a"so had a series of 3aour 3a7suits that
a""eged "o7 7ages4 gender discrimination and i""ega" immigrant "aour9 0hese factors
hampered the companys image9 Anti g"oa"isation activists a"so "amed the company fore6p"oiting the "aour in shops of Bang"adesh4 China and other Asian countries to offer "o7
prices to customers9
O8ectives%
'9 0o assess the cha""enges that 5a"&$art faces in India due to #DI9(9 0o understand usiness mode" of 5a"&$art and its inf"uence on the customers in
distriution4 "ogistics and its acceptance in the Indian mar,et9
3imitations%
'9 0he study is "imited to the city of !une4 $aharashtra9
(9 0he data co""ected 7as restricted to midd"e income and upper&midd"e income
consumers on"y9
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
8/25
CHAPT!" %
"e&iew of Literature
'9 Knee' %((%4 spo,e aout 5a" $art in India9 Fe mentions the Indian retai" sector and
ho7 5a" $art faces different cha""enges to enter into the mar,et9 0he study has
revie7ed various 8ourna" artic"es and artic"es from reputed "oca" ne7spapers in order
to give an idea of 5a"&$art@s successes and fai"ures in the internationa" mar,et9 Fe
found aout the e&randing issue4 the peop"e issue4 the gro7th issue4 the customer
issue and the performance issue faced y 5a" $art9 In addition to the genera"
cha""enges he a"so found aout the country specific cha""enges 7hich inc"uded poor
infrastructure4 po7er supp"y4 high 7astages in transit and high "ogistics cost4
differentia" and high ta6es4 inconsistency in government po"icies4 soaring cost of rea"estate and restrictions on foreign direct investment G#DI9
(9 )wens and *uinn' %((+4 7rote aout pro"ems re"ated to coordination et7een
retai" 8oint ventures9 0hey conducted a study to investigate the pro"ems encountered
in internationa" retai" 8oint ventures9 0hey found out that in a mar,et&driven 8oint
venture activity4 retai"ers appear to have a shorter and intensive ad8ustment period to
effective"y co&ordinate operationa" activity and ridge the corporate and ehaviora"
differences et7een themse"ves and the partner9:9 ,alton and -on' #//%said that the stores 7hich 7ere osessed 7ith ,eeping the
prices e"o7 competitor@s prices and ho7 the profit per item 7ou"d e "ess ut the
overa"" profit 7ou"d increase9 5a" $art ui"t a retai" "in, system that provides sa"esdata4 y item4 store and day4 to its vendor partners9 0hey hired personne" 7ho has
sound ,no7"edge of 7arehouse and distriution system4 data processing and
techno"ogy9 0hey 7ere doing 7e"" in terms of profit and customer service ut they did
not emphasis much on >ua"ity9*9 "obert' %((04 oserved that 7hen !R cou"d have actua""y he"ped the company4 the
e6ecutives at the company fa"tered in uti"iing the opportunities9 5hen 5a" $art
p"anned to e6pand y setting up supercenter stores4 it 7as opposed y the union
saying that the stores 7ere against the unionied "aour po"icies9 0he company 7as4
ho7ever reported to have out right"y opposed the move4 not a""o7ing any emp"oyee tointeract 7ith the union 7or,ers9
Toconclude4 5a"&$art@s vo"ati"e practices inc"uding the "aour po"icies have "ed to an
ostruction in its gro7th9 A"so4 5a"&$art 7ou"d have impact on the Indian retai" mar,et4 if
the Indian 2overnment opens up the restriction on #oreign Direct Investment in the retai"
sector9 0he ma8or reason ehind this is that the Indian cu"ture is eing inf"uenced y the
American cu"ture9 Fo7ever4 the Indian retai"ers are capa"e of adopting the est practices and
reading the minds of an ordinary Indian consumer9 0he Indian retai"ers shou"d come out 7ith
different formats and try to esta"ish their presence in a"most a"" parts of the country efore
5a"&$art esta"ishes itse"f in the Indian su&continent9
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
9/25
CHAPT!" 0
1etodology
#. Selection )f To2ic
0he issue of #DI in $u"ti&rand retai" has een a hot topic of discussion in the recent past4
7ith e>ua" 7eightage for4 as 7e"" as against9 In each case the idea" e6amp"e >uoted has een
the mode" of 5a"&$art9 0hey have a very specific and uni>ue usiness mode" that a""o7s
them to e effective in deve"oped mar,ets9 5e 7ou"d "i,e to study if this same mode" 7ou"d
actua""y 7or, in the Indian socia" and economic scenario9
%. Si3e of Sam2le
0he samp"e chosen for this study 7as restricted to ')) peop"e or fami"ies of the midd"e and
upper midd"e income group of society in the geographic "imitations of !une area9
0. Pilot Study
0o test the feasii"ity of the too" of data co""ection a pi"ot study 7as conducted on ()
respondents9 A >uestionnaire of ') >uestions 7as made and administered9 Based on the
resu"ts4 certain modifications 7ere made and fina" >uestionnaire 7as prepared9
4. Hy2otesis
Based on the resu"ts of the pi"ot study the fo""o7ing hypotheses 7ere formu"ated%
'9 Fypothesis '
H(% 0he enefits of convenience of avai"ai"ity and fami"iarity do not out7eigh the
enefits of vo"ume ased discounts at distant "ocations
H#% 0he enefits of convenience of avai"ai"ity and fami"iarity out7eigh the enefits
of vo"ume ased discounts at distant "ocations9
(9 Fypothesis (H(% 0he various practices of 5a"&$art has positive"y affected the image and operation
of the company
H#% 0he various practices at 5a"&$art has negative"y affected the image and operation
of the company in India9
5. 6ata Collection
Primary 6ata
A !rimary research4 invo"ved a >uestionnaire consisting of >uestions that try to ring out
re"evant data to meet the o8ectives of the research4 7as deve"oped and used for the survey9
0he response of the respondents 7as ta,en y f"oating a 2oog"e document or one on one
meeting9 A copy of fina" >uestionnaire is attached as Chapter = in appendi69Secondary 6ata
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
10/25
It 7as co""ected from 8ourna"s4 oo,s J internet to gather 7or, done y other researchers
prior to the present study9
7. Analysis of 6ata
0he data co""ected 7as tau"ated and presented in the form of ta"es and graphs in Chapter *9
0he hypotheses have een re8ected/accepted9 Appropriate statistica" too"s have een app"ied
to esta"ish corre"ation among the varia"es9
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
11/25
CHAPT!" 4
"esults and 6iscussions
Table #% 2enera" information of respondents
SNo 8eneral $nformation n9#(( Percentage
' Age Gin years
a9 ()&(* ( (H
9 (;&:) ** **H
c9 :)&*) (= (=H
d9 Aove *) ' 'H
( 2ender
a9 $a"e uency of purchase of househo"d goods9
SNo Fre:uency of 2urcase n9#(( Percentage
' Once a month H
( 07ice a month :) :)H
: 0hrice a month * *H
* $ore than three times a month '( '(H
6iscussion A"most have the peop"e purchase househo"d goods thrice a month9 :)Hpeop"e purchase them t7ice a month and the percentage e"o7 peop"e purchasing
househo"d goods "ess than t7ice a month and more than thrice a month is very "ess9
Table 0!reference of ,no7ing shop,eeper at a persona" "eve"
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
12/25
SNo Preference of knowing
so2kee2er at a 2ersonal le&el
n9#(( Percentage
' .es - -H
( o (' ('H
6iscussion $a6imum peop"e4 i9e9 -H4 "i,e to ,no7 the shop,eeper persona""y9 0he
rest thin, it does not rea""y matter9
0his re;ectsthe nu"" hypothesis of Fypothesis '4 that states that4F)% 0he enefits of
convenience of avai"ai"ity and fami"iarity do not out7eigh the enefits of vo"ume
ased discounts at distant "ocations9 Fence the a"ternate hypothesis i9e9 F'% 0he
enefits of convenience of avai"ai"ity and fami"iarity out7eigh the enefits of
vo"ume ased discounts at distant "ocations is acce2ted
Table 4 Capacity of refrigerator used y respondents
SNo "efrigerator ca2acity
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
13/25
SNo >randed food ?s Local food n9#(( Percentage
' Branded food
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
14/25
0his re;ectsthe nu"" hypothesis of Fypothesis (4 that states4F)% 0he various
practices of 5a"&$art has positive"y affected the image and operation of the
company9 Fence the a"ternate hypothesis i9e9 F'% 0he various practices at 5a"&$art
has negative"y affected the image and operation of the company in India9 is acce2ted
Table +% Response to acceptance of 5a"mart amongst Indian consumers
SNo "es2onse to acce2tance of ,almart amongst
$ndian consumers
n9#(( Percentage
' .es -' -'H
( o ( (H
yes no0%
10%
20%
30%
40%
50%
60%
70%
80%
Response to acceptance of Walmart amongst Indian consumers
Axis Title
Fig % Response to acceptance of 5a"mart amongst Indian consumers
6iscussion-'H peop"e fee" that the rand 5a"mart 7ou"d e accepted successfu""y
in India 7hereas (H fee" that the competition for 5a"mart in India is a"ready very
high 0herefore4 the rand 7ou"d not e accepted9
0his acce2tsthe nu"" hypothesis of Fypothesis (4 that states4F)% 0he various
practices of 5a"&$art has positive"y affected the image and operation of the
company9 Fence the a"ternate hypothesis i9e9 F'% 0he various practices at 5a" $art
has negative"y affected the image and operation of the company in India9 is re;ected
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
15/25
Table @% Response to #DI eing good for Indian economy
SNo #DI good for Indian economy n9#(( Percentage
' .es ;: ;:H
( o *- *-H
Yes No44%
45%
46%
47%
48%
49%
50%
51%
52%
53%
54%
Response to FDI being good for the Indian Economy
Axis Title
Fig0 Response to #DI eing good for the Indian Economy
6iscussion;:H peop"e fee" that #DI 7i"" e good for the Indian Economy9 5hi"e the
rest *-H peop"e did not agree to it9
Table /% Appea" of 5a"mart in association 7ith Bharti appea"ing more than 5a"mart
a"one
SNo Better Appea" n9#(( Percentage' .es *' *'H
( o ; ;H
6iscussion0he appea" of 5a"mart in association 7ith Bharti eing etter 7as
accepted y 8ust *'H peop"e and disagreed y ;H9 Fence proving the partnership
7as not something peop"e 7ere very a7are of9
0his re;ectsthe nu"" hypothesis of Fypothesis '4 that states that4F)% 0he enefits of
convenience of avai"ai"ity and fami"iarity do not out7eigh the enefits of vo"ume
ased discounts at distant "ocations9 Fence the a"ternate hypothesis i9e9 F'% 0he
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
16/25
enefits of convenience of avai"ai"ity and fami"iarity out7eigh the enefits of
vo"ume ased discounts at distant "ocations is acce2ted
Table #( Response to discounts attracting consumers
SNo Discount attracts consumers n9#(( Percentage' Strong"y agree (' ('H
( Agree ;- ;-H
: either agree nor disagree '< '
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
17/25
Table ##Response to "arge vo"ume discounts attracting consumers
SNo Discount attracts consumers n9#(( Percentage
' Strong"y agree ' 'H
( Agree uestion
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
18/25
convenience of avai"ai"ity and fami"iarity do not out7eigh the enefits of vo"ume
ased discounts at distant "ocations9 Fence the a"ternate hypothesis i9e9 F'% 0he
enefits of convenience of avai"ai"ity and fami"iarity out7eigh the enefits of
vo"ume ased discounts at distant "ocations is re;ected
Table #%% Response to Indian Consumers preferring #resh food items compared topac,aged food
SNo #resh food over pac,aged food n9#(( Percentage
' Strong"y agree (' ('H
( Agree *: *:H
: either agree nor disagree '; ';H
* Disagree ' 'H
; Strong"y disagree ( (H
6iscussionIn tota"
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
19/25
Ca2ter 5
Summary
According to the study it can e seen ma6imum peop"e "i,e to ,no7 the shop,eeper
persona""y9 0his re8ects the nu"" hypothesis of Fypothesis '4 that states that4F)% 0he
enefits of convenience of avai"ai"ity and fami"iarity do not out7eigh the enefits of
vo"ume ased discounts at distant "ocations9 Fence the a"ternate hypothesis i9e9 F'%
0he enefits of convenience of avai"ai"ity and fami"iarity out7eigh the enefits of
vo"ume ased discounts at distant "ocations is accepted
$ost of the popu"ation possess "o7 capacity refrigerators9 0his sho7s that their
capacity to store "arge stoc,s of food supp"ies is "imited9 Bigger fami"ies4 especia""y
the higher income group4 prefer more than "arge refrigerators9 0his re8ects the nu""
hypothesis of Fypothesis '4 that states that4F)% 0he enefits of convenience ofavai"ai"ity and fami"iarity do not out7eigh the enefits of vo"ume ased discounts at
distant "ocations9 Fence the a"ternate hypothesis i9e9 F'% 0he enefits of
convenience of avai"ai"ity and fami"iarity out7eigh the enefits of vo"ume ased
discounts at distant "ocations is accepted9
A "arge part of the popu"ation prefer to uy randed food4 especia""y pac,ed or tinned
food4 though sma""er numer yet a "arge chun, of :(H peop"e4 prefer to uy "oca"
food from the sma""er retai" stores9 0his re8ects the nu"" hypothesis of Fypothesis (4
that states4F)% 0he various practices of 5a" $art have positive"y affected the image
and operation of the company9 Fence the a"ternate hypothesis i9e9 F'% 0he variouspractices at 5a" $art has negative"y affected the image and operation of the company
in India9 is accepted9 !eop"e find the rand 5a"mart fascinating ut not much over
Indian Retai" stores9 0he numer of peop"e preferring 5a"mart@s appea" over Indian
Brands is **H as compared to the Indian Brand@s appea" 7hich is ;
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
20/25
hypothesis of Fypothesis '4 that states that4F)% 0he enefits of convenience of
avai"ai"ity and fami"iarity do not out7eigh the enefits of vo"ume ased discounts at
distant "ocations9 Fence the a"ternate hypothesis i9e9 F'% 0he enefits of
convenience of avai"ai"ity and fami"iarity out7eigh the enefits of vo"ume ased
discounts at distant "ocations is re8ected9
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
21/25
Ca2ter 7
Conclusion
0he first o8ective 7as to assess the cha""enges that 5a"&$art faces in India due to #DI9 It is
7e"" ,no7n that #DI in mu"ti&rand retai" is a stic,y su8ect among "egis"ators9 0he study has
sho7n that even the popu"ation is not very sure of the enefits It cou"d get from #DI in the
retai" sector9 0hough a s"im ma8ority fee" #DI is good a "arge chun, do not agree 7ith it and
hence hampering the image of 5a"&$art as a foreign chain4 7ith in the country9 #or this
reason the "in, 7ith Bharti has proved usefu" to retain a positive image 7ith the Indian
consumer9
0he second o8ective 7as to understand usiness mode" of 5a"&$art and its inf"uence on the
customers in distriution4 "ogistics and its acceptance in the Indian mar,et9 #rom the study 7e
can see that most of the peop"e are sti"" not very open to the concept of purchasing goods in
high vo"ume4 7hich is the core competence of 5a"&$art usiness mode"9 0he Indian
popu"ation prefers uying products 7hich 7i"" remain fresh from "oca" vendors than
processed goods9
"!C)11!N6AT$)NS
0he study hence proves that the association of 5a"&$art 7ith Bharti is he"pfu" for 5 so as to
cover the grounds in terms of understanding the "oca" mar,et of India9 0hey shou"d a"so try
setting up shops 7hich is easi"y accessi"e "i,e Re"iance stores and Big Baars to the
customers un"i,e the mode" they use in the 1SA of having a ig retai" stores 7hich is sti"" not
feasi"e in a deve"oping country "i,e India9
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
22/25
Ca2ter +
>ibliogra2y
'9 Kha4 S and Singh4 B9G()':4 Apri"9 Impact of amient music and affai"ity of sa"espersons on consumer ehaviour in a rea" retai" setting 7ith emphasis on gender
difference9 Indian Kourna" of $ar,eting9(9 $ichon4 R4 Cheat4 K C4 0ur"ey 3 5 G()):4 Ku"y9$a"" atmospherics% the interaction
effects of the ma"" environment onshopping ehaviour9Kourna" of Business Research
;= G()); ;-
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
23/25
Ca2ter @
Appendi6
E"icit Information on Suitai"ity of 5a"&$art $ode"for the Indian $ar,et
Dear Respondent4
5e4 the students of $asters of Business Administration from Symiosis Internationa"1niversity4 !une4 are conducting a survey on ?Suitai"ity of 5a"&$art mode" in India@9 5esee, your co&operation in ans7ering the >uestionnaire given e"o79 5e assure you that theinformation provided y you 7i"" e ,ept strict"y confidentia" and 7i"" e used for academic
purposes on"y9
Mind"y put a tic, against the appropriate ans7ers9
8eneral information
'9 ame% NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN
(9 2ender% $a"e #ema"e
:9 Age Gin years% ( (&(* years (;&:) years :)&*) years *) years
*9 Income group :&; "a,hs ;&') "a,hs ') "a,hs
Gper annum
S2ecific $nformation
'9 Fo7 often do you go to purchase househo"d items and provisionsPa9 Once a month
9 07ice a monthc9 0hrice a monthd9 $ore than thrice a month
(9 Is it etter to ,no7 the shop,eepers on a persona" noteP
.es
o
:9 5hat is the capacity of the fridge you useP
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
24/25
'
-
7/23/2019 Study on Consumer Behavior and Buying Preferences in india
25/25
"i,es of the foreign retai"erP
3arge vo"ume discounts attract consumers%
Strong"y disagree Disagree either agree nor disagree
Agree Strong"y agree
'(9 Indian Consumers prefer #resh food items as compared to Canned or pac,aged fooditems%
Strong"y disagree Disagree either agree nor disagree
Agree Strong"y agree