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[Your Universitys name]

[CONSUMER BUYING BEHAVIOUR IN

RETAIL CHAINS: CASE STUDY OF BIG

BAZAAR]

[M.A. Advertising & Marketing]

DISSERTATION


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EXECUTIVE SUMMARY:

The purpose of this research is to understand consumer-buying behavior in retail chains for Indianmarket. Big bazaar is taken as example to represent the Indian retail scenario. To understand the

insight into subject matter, literature review provide in-depth analysis of the theories related to retail

development based on which the buying patterns of consumers in Indian retail chains is understood

in detail. The analysis of buying behavior patterns of consumers in Indian retail sector reveals some

important facts during survey analysis. Many factors such as influence of family, income range,

discounts and others are underlying and regulating the overall purchase decision process of

consumers in retail scenario. All the attributes such as behavioral outlook, perception, buying

necessity, etc also effect the purchase decisions and are capable of affecting buying decisions.

Discussion and focus on all these scenarios is given in detail with respect to consumers of the retail

chains. This research also highlights the emergence of organized retail and the increasing preference

of consumers towards organized retailers. The emergence of big players in Indian retail scenario

gives boost to some best practices that were missing earlier from retail habits of Indian consumers.

However, the discount structure and reliability are few of the attributes which attracts the Indian

consumers and which should not be diluted by organized retailers.


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DECALRATION STATEMENT

This work has not previously been accepted in substance for any degree and is not being concurrentlysubmitted in candidature for any degree.

Signed: .. (Candidate)

Date: ..

STATEMENT 1

This dissertation is being submitted in partial fulfilment of the requirements for the degree of: MBAin Logistics and Supply Chain Management.

Signed: (Candidate)

Date

STATEMENT 2

This dissertation is the result of my own independent work and investigation, except where otherwisestated. Other sources are acknowledged by footnotes giving explicit references. A bibliography isappended.

Signed: . (Candidate)

Date:

STATEMENT 3

I hereby give consent for my dissertation, if accepted for photocopying and for inter-library loan, andfor the title and summary to be made available to outside organisations.

Signed: (Candidate)

Date:

I hereby give consent for my dissertation, if accepted, to be available for photocopying and for inter-library loan after expiry of a bar on access approved by the University on the special recommendationof the institution.

Signed: (Candidate)

Date:


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ACKNOWLEDGEMENT

To be given by the student for departmental heads and professors who helped him tocomplete the dissertation.


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CHAPTER 1: INTRODUCTION

Retailing segment is the most dynamic one and in India, retail segment is undergoing an enormous

roar at present. Indian retail division constitutes almost 10% of the nations GDP and almost 8-9% of

the employment area. The business of a retail chain is totally dependent on the purchase habit and

buying behaviors of these consumers.Currently there has been a sizeable progress in the retailing

perception. According to Chandrasekar (2010) the shift in mindset of the Indian consumer in

expressions of selection of predilection, significance for wealth, and the materialization of we ll

thought-out retail systems has altered the countenance of retailing in India. The following reasons as

put forward by Sahu (2010) will more effectively elucidate the present scenario of retailing in India:

The growth of systematized retailing has been immense constituting to 20% over the last

5 years because of which there is a predilection that retailing sector will contribute

approximately US$30 billion by the year 2011.

The Indian retail sector although principally patchy through owner-operated mom andpop outlets has been observing the surfacing of a few intermediate sized Indian retail

chains, namely Big Bazaar (Future group), RPG retail, Shoppers Stop, West Side (Tata

group), Vishal Megamart and Lifestyle International.

With the attractiveness of the Indian retail sector, foreign retailers like Wal-Mart,

Carrefour SA, Tesco Plc, are more interested to penetrate this growing marketplace,

although the Indian retail sector has closed the doors for foreign direct investment (FDI).

Within the last few years, as a result of globalization, technological upgradation andincreasing purchase parity, Indians have experienced a dramatic transformation in their

lifestyle habits, preferences by moving from traditional ways of shopping in small shops

for food, groceries, and apparels to lifestyle categories that offer all these services under

one umbrella and deliver better services.

Indian retail sector is intensifying the number of arrangements of the stores which is a

major strategic decision and can support innovation providing a cutting edge competence

to the consumers. Structured retail chains in India are curbing out various formats,


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ranging from concession stores to superstores to hypermarkets to departmental chains.

Fig. 1 gives example of outlines followed by various retail chains in India:

Figure 1: FORMAT ADOPTED BY KEY PLAYERS IN INDIAN RETAIL SECTOR. TAKEN

FROM: THORPE AND THORPE (2011); P: 174.

Study of consumer buying behavior in retail chains is an art and science of understanding needs and

demands of consumers, and developing acumen to judge how prospective buyers decide to spend

their resources like time, money and energy during different stages of the buying process. In a more

systematic approach the study of consumer buying behavior involves the following factors as pointed

out by Gaur, Madan and Xu (2009):

1. Recognition of the supporting mechanism involved in the overall decision making process ofpurchase of the consumers.

2. Detection of factors which controls the decision making process.

3. Consideration of ever varying and dynamic retail environment.

1.1 BACKGROUND OF THE STUDY:In order to understand the consumer buying behavior process in retail chains in India, a well known

retail chain like Big Bazaar a venture of Future Group has been considered. The principle notionof considering Big Bazaar for the issue of research is because Big Bazaar is a fast mover and

rapidly growing retail chain amongst the other retail groups. Kotler, et al. (2010) has also said that

Big Bazaar has re-invented the concepts of shopping and buying and has been instrumental in

bringing a change in the consumer buyer attitude. Through its unique policies it has framed a shelf

where every other item is available under one cover. Pickering & Gaur (2009) has opined that Big

Bazaar has already created its niche in the mind of consumers specially the middle-class categories

and in the world of retail marketing. According to the works of Mohanty & Panda (2008) Kishore

Biyani took the companys incursion into ordered retail marketing with the opportunity of


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introduction of Big Bazaar in the year 2001. It is a subsidiary concern of Future Group and is an

entity of Pantaloon Retail chains Ltd. Big Bazaar is also known for various offers giving either

seasonal discounts, weekend discounts or bulk discounts. Roughly there are 122 stores of Big Bazaar

all over in Kolkata, Mumbai, Chennai, Bangalore and other metropolitan cities of India and the

crown stores roll a collective pace of 35 lakhs in a month on an average. It first started out with

cosmetics, apparels but soon we got to see a whooping number of items available in the stores

(Akash, 2009). Hence it is quite necessary to study the consumer buying behavior in Big Bazaar in

order to gain a clear understanding of the process of consumer purchase process in retail chains

Figure 2 BIG BAZAAR STORE.SOURCE: http://www.soumyabrata.com/Article/Big-Bazaar-

Retail-Revolution-in-India.aspx

1.2 CONSUMER BUYING BEHAVIOUR IN INDIAN RETAIL CHAINS: AN OVERVIEW

According to Mohanty & Panda (2008) every individual are unique in their tastes and preferences

and each purchase decision is marked with the distinctive values of the buyer. It is therefore a

complicated and intricate process to comprehend the purchase decision and buying behavior

variables. It is also significant to differentiate between a consumer and a retail customer. A consumer

is that person who actually attains the possession, uses the possession and can appraise goods and

services. On the other hand a retail customer is one, who actually purchases the goods or services

from a vendor or any other trader. A person can be both a customer as well as a retail consumer.


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Ascertaining and understanding the dynamics of consumer behavior is the most exigent job for any

salesperson.

Engel, Kollat and Blackwell (1973) define consumer behavior as Acts of individuals directly

involved in obtaining and using economic goods and services, including the decision processes that

precede and determine these acts. The retail consumer behavior is a complex phenomenon with

many phases, dimensions, and influencing factors, hence any attempt to bring it to the retail level is a

very valuable process. As suggested by Samli (1989) the definition of retail consumer behavior is

functionally related to seven components: cultural background, individual personality, need

realization and shopping motivation, shopper characteristics, purchase behavior, store choice, brand

choice, and product choice behaviors, and lastly buyer remorse or cognitive dissonance. The figure

given below, shows the consumer behavior implications for retailing strategies.

Figure 3: RETAIL CONSUMER BEHAVIOR. ADAPTED FROM SAMLI, (1989).

It is, particularly imperative for retailers to build up in-depth consumer imminent as they are in

straight contact with consumers. It is often, termed as Know Your Consumer approach. It is the

precise reason that one can find top executives of big retailers such as Future Group, tend to spend at

least some of their precious times in stores exploring the various mind set of consumers. They

observe various activities of the incumbents, interact with them and discusses with store workers to

obtain the actual information about the buyer behavior. Shopping manners of consumers in India is

quite distinctive from their counterparts elsewhere around the globe in more than one ways. Indianpatrons have an elevated amount of assessment point of reference and they have been identified as


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the most discriminating regulars around the globe. Govindarajan (2007) suggested that the loyalty of

Indian consumers tends to fluctuate and since they highly rely on pricing therefore their preferences

tend to change from one retail store to another. Indian consumers are traditional and they have a

prominent belief that identified items are expensive. Similarly the involvement of Indian consumers

in the buying process also varies from high priority products to low priority products. When

everything centralizes around consumers so the study of their buying behavior becomes imperative.

These studies are important for retailers as they can mix their product, price and promotions

accordingly. It also helps retailers to take decision about private levels. So study of consumer buying

behavior is crucial and essential for a group to sustain the market competition.

1.3 STATEMENT OF THE PROBLEM:The main issue focused in this dissertation is the study of the consumer buying behavior in retail

chains; the underlying statement of the problem highlighted the need to study the consumer buying

behavior in retail chains. A consumer gives much importance to the product offering of the firm than

what the product really offered to him. In this context if the overall buying and decision making

process is not understood then it will not be possible to further judge the behavior of consumers. The

problem also focused on gaining insight of various retailing theories associated with the consumer

buying patterns in retail chains. So the main objective of this dissertation has been to understand theretailing concept, theories associated with it and the consumer buying behavior in retail chains in

India.

1.4 AIMS AND OBJECTIVES OF THE PRESENT RESEARCH:

The research paper is aimed to understand the process of consumer buying behavior in Indian retail

chains and this has been achieved by the case study analysis of Big Bazaar. The main investigation

followed in the dissertation includes the points given below:

1. In-depth analysis of the theories related to retail development in order to comprehend the

buying patterns of consumers in Indian retail chains.

2. Critical investigation of the buying behavior patterns of consumers in Indian retail sector.

3. Evaluation of the factors underlying and regulating the overall purchase decision process.

4. Critical analysis of the predisposing factors like attitude, perception, buying necessity, in

consumers of the retail chains.


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1.5 RESEARCH QUESTIONS:

Understanding the consumer buying behavior was always painstaking and crucial for marketers.

According to the buying behavior, demands of the consumers and their perception, marketers try to

promote their brands. The main research question which has been seeded in this dissertation is:What are the main patterns involved in the consumer buying process and what factors regulate the

whole purchase decision making process?

1.6 RATIONALE AND SIFNIFICANCE OF RESEARCH:The main intention of this paper is to understand the following concepts:

1. Comprehension of retailing theories and retail scenario in India.

2. The consumer percepts about the retailers product offerings and their relative behavior while

buying products and services.

3. Recognizing the factors which enhance the overall buying decisions process and the role of

these factors in regulating the buying behavior of the consumers.

4. The reaction of the consumers towards various promotional aspects of the retail chain due to

which they tend to purchase the products.

With enhanced diversity and fragmentation of consumer market and proliferation of consumer

segments, it has become significant for researchers to read the minds of consumers so that the

complexity of the whole process can be unraveled smoothly.

1.7 RESEARCH STRUCTURE:The research concepts has been mainly elaborated through the survey questionnaire analysis of the

consumer buying behavior patterns in Big Bazaar (Bangalore outlet) and has followed an exploratory

analysis containing primary and secondary data regarding the same. For studying the consumer

behavior, survey analysis of questionnaire has been carried out with proper elucidation of variousfacts and figures. The research is investigational in approach with an inductive reasoning.

Convenience sampling has been conducted and the sample size involved feedback from 20

respondents who are consumers in Big Bazaar. The research includes the following sections in

chronological order.

1. Abstract: A glimpse of research topic, the central idea and the overall process.

2. Introduction: Formal introduction of the retail chain concepts in India, overview of consumer

buying behavior and the background of study for Big Bazaar.


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3. Literature review: These include literary evidences from various authors revolving around the

retailing theories, concept of consumer buying, the decision process, and types of buying of

consumers in retail chains.

5. Research Methodology: Systematic analysis of the research approach, paradigm and data

collection methods applied for this particular paper and their justifications.

6. Data Analysis: Primary data pertaining to the consumer behavior pattern, income status, buying

necessities etc has been given through survey questionnaire analysis and secondary data.

7. Discussion: This would analyze the data collected in the light of the research objectives and tried

to evaluate the research question being investigated.

8. Conclusions and Recommendations: This would summarize the research topic; the results

obtained and have tried to draw recommendations based on the outcomes


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CHAPTER 2: INDIAN RETAIL SCENARIO

2.1 INTRODUCTION:The main intention of this section has been to understand the theories related to retailing, the Indian

retail scenario and the various factors associated with the consumer buying process in retail chains.

Each segment has been discussed under separate sub headings and clarity has been maintained so

that they can be reconnected while data analysis and discussions. Through the various explanations

of theories from literary excerpts, this chapter has focused to strengthen the concepts related to

retailing and consumer buying behavior in retail chains in India.

2.2 KEY DRIVERS OF RETAILING IN INDIA:

Nargundkar, (2006) has stated that Indian retailing is undergoing a process evolution and is poised to

undergo dramatic transformation. Agarwal, (2000) has put forward that the retail sector employs

over 8 percent of the national workforce but us characterized by a high degree of fragmentation with

over 5 million outlets, 96 percent of whom are very small with an area of less than 50 m 2. Theretail

universe more than doubled between 2000 and 2010 and the number of outlets per 1000 people at an

all Indian level, increased from 6.8 in 1978 to 13.0 in2010. Rajaram & Tang, (2001) and Ernst,

(1999) has argued that because of their small size, the Indian retailers have very little bargaining

power with manufacturers and perform only a few of the flows in marketing channels unlike in the

case of retailers in developed countries.

Retail industry in India is divided into two segments: Glasserman, (1994) commented that Organized

retailing are those which includes the retailers who hold a license, pay taxes for their business and

mainly include corporate supported hypermarkets, retail chains and privately owned retail business.

Unorganized retailing includes the conventional economical retailing, for instance the neighboring

Kirana shops proprietor operated all-purpose stores, pan-shops expediency departmental stores,

push carts, and roadway peddlers. Though the Indian retail sector is dominated by the unorganized

segments but sooner or later the organized retail giants like Big Bazaar, Pantaloons, and Shoppers

Stop are going to take the larger share (Fig. 4)


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Figure 4: RETAIL GROWTH POTENTIAL. SOURCE:

http://www.fibre2fashion.com/industry-article/free-retail-industry-article/impact-of-retail-

management-in-the-growth-of-indian-economy/impact-of-retail-management-in-the-growth-of-indian-economy7.asp.

According to Fernandes, et al. (2000), the pace of growth of retail sector in India is very fast and the

last few years have witnessed the major changes where organized retail is on a massive development

growing at a speed of about 40% of CAGR and amounts to US$ 25 bn according to the IBEF, (2010)

sources (Fig. 5). The key drivers which are significant in this swift intensification are outlined below:

Figure 5: GROWTH OF RETAIL SECTOR IN INDIA: SOURCE:

http://www.viaworld.in/go/world/ourviews.

1. Shift of demographics: Bennet, et al. (1998) argued that compared to other countries the

lowest mean age group for shoppers in India is 25. The assemblage of the population is

shuffling towards the age-category of 20-50 which constitutes the working class with

increased purchase parity. More than 60% of the Indian consumers who are categorized as

shoppers belong to the age group of 30-35 years. Thus India has the biggest youth class

in relation to total dimension and this youth category is considered as the main driver of


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expenditure in shopping as they have the capability and likeliness to squander with their sky-

scraping income.

2. Increasing Income standards: India is now in the second position amongst developing

economic countries around the world. Compared to previous epochs, nowadays many family

units are getting added to the consuming category because of their elevated income levels

(Fig. 6). Rising levels of dual earnings in almost all the households have got powered with

increase in buyer power, spending ability stimulating the growth of retail sector in India.

Figure 6: RISE OF INDIA'S INCOME: SOURCE:

http://www.equitymaster.com/5MinWrapUp/detail.asp?date=02/19/2011&story=1&title=Is-India-in-crisis.

3. Shift in consumer behavior, perception, demands and attitudes: Banerjee and Uniyal,

(2002) has pointed out that modern retailing is interwoven with the demands, and attitudes of

the consumers. Globalization, increased purchase parity and high income have added to the

progression of the Indian middle class category. This has resulted in an overall change of

shopping habits and purchasing frequency which are on rise. Previously, Indian consumers

were not brand conscious and they did not use to indulge in luxury buying. But today the

scenario is quite different with more and more people ready to try new brands, experiment

with new purchases, splurging more on retail shops.

4. Improved credit affability:Previously cash payments was the only mode of buying but

today with increased banking facilities, consumers are enjoying the credit and debit card

facilities. These are called as the plastic money which is easy to handle and shop (Berman

and Evans, 2001). Payments have been made much easier with the hassle free usage of net

banking, credit and debit cards. The electronic data reading machines in the retail stores have


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all the more facilitated the payments. Because of all this the retail stores have gained

prominence (Fig. 7)

Figure 7: CREDIT CARD USAGE RATE IN INDIA. SOURCE: REUTERS, 2011.

5. Increasing consciousness of Indian Consumers: Couglan and Anderson, (2001) reasoned

that the rise of the literacy levels, the emergence of satellites and cable channels have made

the consumers more aware with more promotions and advertisements. The technological

improvements with internet facilities have all the more made the consumers act more

reasonably and they consume lot of information before going for a brand or purchase. So the

overall awareness of the consumers has increased.

Thus all these factors like increase in the number of working women population, growing number of

nuclear families has changed the concept of shopping and they prefer retail chains more than the

mom and pop stores, small kirana stores like before.

For further understanding the phenomenon of growth of consumption, organized retailing which is

entering the next high trajectory, and the behavior of consumers in organized retail chains, it is

necessary to understand different theories related to the development of retailing in India.


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CHAPTER 3: LITERATURE REVIEW

3.1 THEORIES OF RETAIL DEVELOPMENT:

Retailing has undergone changes over a period of time. Basically, there are two sets of theories to

explain the dynamics of retail trade:

3.1.1 CYCLICAL THEORIES:

Brown and Olen, (1989) puts forward the cyclical theories. According to them as per cyclical

theories the process of retailing is repetitive in nature. The cyclical theories have two contenders:

1. Wheel of Retailing: This theory was originally given by McNair in a speech in 1957

(McNair, 1958) and modified by Hollander, (1960). It is based on the assumption that price-

sensitive consumers are not store loyal and new retailers are in a better position to implement

lower operating costs in comparison to existing ones. There are three phases in this theory as

shown in the Fig. 8 below:

Figure 8: THE WHEEL OF RETAILING. SOURCE: ADAPTED FROM LEVY, MICHAEL

AND BARTON, (2004); P; 75.

Entry Phase: It describes how new types of retailers enter the market as low-status,

low-rent location, low margin, low-price operators with no-frills products.

Trade-up phase: As retailers meet with success, they improve locations, add more

services, create ambience in their product offerings.


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Vulnerability Phase: This phase is marked by high cost structure and less

adaptability. Existing retailers become vulnerable to new types of low-cost, low-

margin retail competitors who progress through the same pattern.

This theory takes into account changes occurring in the environment. If the management moves

away from market realities, it leads to inability to respond to threats to the business. Initially,

McDonalds offered selected menu and limited services. But over the period, its product horizon

expanded to include sports facilities as well. It made way for many new, low-cost fast food retailers

to start ventures to fill the gap created by upward movement of McDonalds. Similarly, when

traditional departmental stores became inaccessible due to high prices for a large chunk of population

seeking more value, full line discount stores, (such as Big Bazaar, Wal-mart) emerged as a result.

Big Bazaar in India emerged as a discount store in response to similar environments to cater the

needs of price-sensitive Indian consumers.

2. Retail Accordion Theory: This was proposed by Hollander in 1966 (Fig.9).According to

this theory merchandise mix expands and contracts like an accordion during different time

periods (Brown, 1987; Hollander, 1966; Hollander, 1981).

Figure 9: RETAIL ACCORDION. SOURCE: REYNOLDS, ET AL. (2007).

Development of retail is linked to human habitation. When a new locality develops

for settlement of human population, early retailers there deal in nearly all products to

satisfy daily basic needs.


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As the locality develops, few retailers tend to offer specialized merchandise, like

footwear, hardware, apparels, consumer durables, lifestyle products etc. and services

like restaurants beauty salons, among others.

With passage of time, the specialized retailers may add unrelated products to theirexisting merchandise in order to increase revenues. Thus gradually some specialized

retailers again become general merchants.

This theory is also termed as General-Specific-General theory by Stern and El-Ansary,

(1977). In a different context, Crossword, a lifestyle bookstore, chain and a part of Shoppers

Stop Ltd., which started its operations in 1998 gradually added non-book categories such as

pens, stationery, toys, and music mainly to increase profit margins and traffic flow? These

categories currently account for 40-42% of all sales at Crossword, (2008).

3.1.2 DEVELOPMENT THEORIES:

As per development theories, the retail is evolving continuously. These include two processes:

1. Dialectic Process: As per dialectic process (shown in Fig. 10), which was proposed by Gist,

(1968) retail institutions evolve into newer forms over a period of time. This is based on Karl

Marxs Theory of Evolution. It further suggests that new retail that new retail formats emerge

by adopting characteristics from other form of retailers. It happens in the same manner as a

child is a product of pooled genes of two different parents and may not exactly match with

either of the parents.


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Figure 10: DIALECTIC PROCESS. SOURCE: http://train-

srv.manipalu.com/wpress/?p=130514.According to Oren, (1989) new retail formats maintain continuity with the existing retail

formats. It offers simple and logical framework for the understanding of developments of

recent retail formats. It can be explained in a different way also. The new retail institute

evolves in the same way as synthesis is the outcome of combining thesis (some concept or

idea) and anti-thesis (opposite concept or idea). The following example will give a better idea

about this theory:

Figure 11: EXAMPLE OF DIALECTIC PROCESS. SOURCE: MADAAN, (2009).P; 18.

Take another example, convergence of Traditional (store-based) and direct-marketing (home-

based) resulted in the emergence of new retailing format electronic direct marketing.


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3.2.1 Types of Purchase Decisions:

According to Madaan, (2009) the purchase decisions can be divided into four categories on the basis

of purchase frequency and money involved: (as indicated in Table. 1 with their characteristics).

Table 1:TYPES OF PURCHASES. SOURCE: MADAAN, (2009); P; 78.

Cant, Strydom, and Jooste, (2009) opines that determining whether a decision is major or minor is

relative in many situations. For example, a person who is tech savvy and regular purchaser of

gadgets, purchase of a laptop may be a routine decision, for him, but for someone else, it can be

uphill task-specifying requirements, deciding about brand, after sales service issues, etc. Similarly

for a person who has never gone out of town, the decision about staying in a hotel outside the town

can involve extensive information search and thus can be a major decision, but for someone else

whose job entails a lot of travelling, the decision can be almost automatic. The stages in the purchase

decision making process are shown in the Fig.12 below.


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Figure 12: STAGES IN THE PURCHASE DECISION PROCESS. SOURCE: CANT,

STYRDOM, AND JOOSTE, (2009); P65.

3.2.1 Buying as a Need-fulfillment and Problem Solving Exercise:

Assael and Kotler, (1985) pointed out that marketing is basically about identification of needs of

consumers and satisfying them in a competitive manner. Thus concept of marketing revolves around

concept of needs. Motive of every product, good or service, is to satisfy some need, directly or

indirectly. On thebasis of Maslows Hierarchy theory five levels of needs are discussed by Philips,

Doole and Lowe, (1994) and Trehan and Trehan, (2007) as given below:

1. Physiological Needs: As per Madaan, (2009),these are most basic, and vital for the survivalto keep body and soul together. Examples are food, water, and air. In context of retail, food

and grocery retailers such as supermarkets, Kirana stores offer staple goods to satisfy the

basic routine needs.

2. Safety or Security Needs: These belong to another set of basic needs. Essentially, these

connote physical security, but financial security is also an important dimension. Examples are

clothing, insurance products. One implication for retailers is the need to offer safe

environment so that consumers tend to spend more time in their stores (Madaan, 2009).

3. Social Needs: It entails belongingness towards a group. Acceptance, enjoyment, comfort

level and sense of security are definitely higher in being part of a group. Offer of packaged

tours and travelling agencies; visiting hypermarkets malls, entertainment zones along with

family and friends connote satisfaction of social needs. Starbucks, Barista, Caf Coffee Day,

and leading beverage stores promote their stores as places where friends can have party,

socialize themselves, and hang out for hours together (Madaan, 2009)

4. Esteem Needs: Once social needs are fulfilled to some desired extent, a person tries to

differentiate him or herself from other members of the group. Addressing esteem needs by a


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retailer connotes making consumers realize that their patronage is important to the store.

Retailers design their CRM programs around this need. On the other extreme esteem needs

become outwardly directed. People tend to demonstrate their affluence to others (also known

as demonstration effect). Retailers targeting high-end brand conscious consumers tend to

address this need (Madaan, 2009)

5. Self-Actualization Needs: These become important when fulfillment of materialistic needs is

no longer crucial and a person looks for utmost development of his or her mental or

intellectual capabilities, e.g., educational products such as encyclopedia addresses self-

actualization needs. Lifestyle retailers such as Wills Lifestyle, Pantaloon Retails, and

Shoppers Stop tend to offer products soothing the personalities of their buyers which are

usually from upper strata of the society (Madaan, 2009)

3.2.2 Difference between Consumer Needs and Expectations:

According to Madaan, (2009) need is different from want. While need is basic, want is the

manifestation of the product needed to satisfy the need. Needs and expectations are sometimes used

interchangeably and in continuity with each other as indicated by Donthu and Joseph, (1994):

The major difference between them as given by Levy, Weitz and Pandit, (2007) and Madaan, (2009)

is shown in Table. 2:

Table 2: DIFFERENCE BETWEEN CONSUMER'S NEEDS AND EXPECTATIONS.

SOURCE: MADAAN, (2009); P;80.

3.2.3 Basic Model of Consumer Decision Making:

A simple model (Fig. 13) to study the consumer behavior has been given below. It consists of mainly

two dimensions as given by Madaan, (2009):

1. Factors affecting consumer behavior and,

2. Basic Decision Making Process


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Figure 13: BASIC MODEL OF CONSUMER DECISION MAKING. SOURCE: MADAAN,(2009); P: 80.

3.2.4 Factors Affecting Consumer Buying Behavior Model:

Consumer behavior is affected by many factors; most of them are not under control of a retailer as

suggested by Kashyap and Raut, (2005). Still understanding all of these factors is important. It has

been observed that across different product categories, trends are towards convenience, sensory

pleasures, wellness, and individuality. This megatrend has given desired impetus to retail

environment. These factors operate at many levels, but broadly divided into two levels, i.e., macro

and micro.

1. Macro Level Factors:

i. Socio-cultural factors: According to Madaan, (2009); Kashyap and Raut, (2005)Culture is

the set of values, perceptions, beliefs, norms, customs, languages, way of life, etc., learned

by an individual as a member of society. It is inherited from one generation to another. If a

product comes up to the expectations of a particular cross-section of culture, the retailers can

think of extending their products to international arena and across different cultures.

According to Kishore Biyani, Group CEO, Future Group, India is a Mass of Communities.

It is a diverse society multi-region, multi-ethnic, multi-lingual. Culture is dynamic and it

undergoes changes in response to environment.

Group Influences: According to Trehan and Trehan, (2007) the friends, colleagues, and

family members exert influence over the purchase behavior of a consumer. Five out of six

consumers visit the stores with companions.

Role and Status: Role and status are two sides of the same coin. Every status or position in

the society has reciprocal role associated with it. Role is the expected behavior from an


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individual by other members of the group or society. There are various roles of consumers in

the buying process as given by Kotler and Waldemar, (2006) as shown in the Table.3 below

and Fig. 14:

Table 3: ROLES OF CONSUMERS IN BUYING. SOURCE: KOTLER, (2006), P;26.

The various groups which exert influence in the purchase process are:

Social Class

Families

Reference Groups

Figure 14: FACTORS INFLUENCING CONSUMER BEHAVIOR. SOURCE: KOTLER,

(2006); P: 117.

ii. Demographic factors: Demographic is the study of population. It covers genders, age

profile, household size, residential status, growth rate of population, education, income

distribution, occupation to name a few. Implications of few demographic changes for

retailers in India have been discussed as under: (Madaan, 2009; Trehan and Trehan, 2007;

Kotler, 2006):


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Comparative younger population indulges in out shopping. They take more risk and

thus, there is better scope of selling innovative products for retailers especially in

case of fashion, apparels, entertainment, I.T and electronic products.

Increasing percentage of women becoming part of salaried workforce actually meansmore confident women with greater say in purchase decisions. They have less time

for home which means increased demand for convenience products from retailers.

With information technology allowing people to work from home, more husbands

may actually become house-husbands and assume many roles traditionally meant for

women.

iii. Other Factors in Environment: In addition to above factors, political environment,

economic environment, and legal system are also parts of Macro-level factors affecting

buying behaviors of consumers as indicated by Kotler, (2006). Legal system provides

regulatory framework for business activities. Consumer Protection Act, 1986 has made big

changes in consumer behavior and consumers have become better aware of their rights.

2. Micro Level Factors:

i. Psychological Factors:Consumer behavior itself is a psychological term. So, buying is a

manifestation of human behavior. Understanding the terms like perception, attitude,

motivation and involvement, learning, ability and knowledge help in better understanding of

the concept. According to Kotler, (2006); Madaan, (2009):

Perception: According to Pride and Ferell, (2009) Perception is the process of

selecting, organizing, and interpreting information inputs to produce meaning.

Perception does not always develop in a direct manner and information gets filteredbefore it is actually stored in the minds, which is termed as perceptual filter. In the

context of perception several terminologies are associated with the process of buying

like selective exposure, selective retention, and selective distortion. Good visual

displays in the store attract consumers, change their perceptions, and motivate them

to buy the merchandise. The retailers try to develop their stores as brands to reduce

risk perception of prospective buyers and increase value perception.

Attitude: According to Parsuraman, Zeithmal, and Berry, (1998) it is the amount of

feeling for or against a stimulus in environment. It can be positive, neutral or


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negative. Attitudes are stored in the long term memory and reflected in the behavior

of consumers while buying. They drive perceptions also. It can produce the halo

effect which develops based on the early purchase experiences.

Motivation and Involvement: Kotler, (2006) suggested that motivation is built

around the concepts of Needs and desire to achieve a certain outcome. Need is

basically a sense of deprivation and the actions are oriented towards satisfying those

needs. The consumers motivation can be categorized by: (Puccinelli and Grewal,

2008)

a. Economic: Saving Money and relation to value perception.

b. Hedonistic: Feeling pleasure.

c. Risk avoiding

d. Relational: aim is to be recognized as a privileged client by establishing a

relationship with a store or its staff.

e. Functional: Aim is to reduce the time and effort needed in purchase

process.

According to Madaan, (2009) the role ofpersonal selling is central in the store.

They convert consumers from low involvement situation to high involvement one

by establishing personal rapport, answering queries and installing confidence.

Learning, Ability and Knowledge: According to Wakefield and Baker, (1998) it

is the process through which a relatively permanent change occurs in the behavior,

mainly through sharing information and experiencing consumers. Sources of

information can be commercial such as advertisement and non-commercial such as

family members. Ability is the capacity to learn about products. Retailers should

try to assess the ability of their consumers and extend them the opportunity to

learn, which is crucial for impulse purchases. Knowledge is the vital force which

helps the consumers to know about the products and ultimately help them to buy

the products. This is important in case of technical products specially.

ii. Personal factors include age and stage in lifecycle. Cohen et. al, (2008) suggested that

buying preferences of young people are different from those of older people. The needs are

different at different stages. According to Madaan, (2009) lifestyle trends, occupation and

Personality are other attributes which also affects the purchase decision of a consumer.


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iii. Purchase situation: Baker and Cameron, (1996); Mehrabian and Russell, (1974) suggested

that purchase decision mainly depends upon situation; there can be countless purchase

situations where purchase decisions may change such as a desired product or brand id out of

stock, upset mood, time of the week, day of the week, purchases while attending mobile

phone call and so on. Purchase situation can have greater impact in case of minor purchases.

3.3 CONCLUSION:This chapter of the dissertation has entailed different theories of retailing and theories pertaining to

the consumer buying behavior in retail chains. This has ultimately led to the understanding of the

fundamental concepts in the whole buying process of consumers in retail chains. The knowledge

earned in this section would further help to analyze and interpret the data in a systematic manner.


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CHAPTER 4: RESEARCH METHODOLOGY

4.1 INTRODUCTION:The essence of a research lies in the methodological process adopted for the collection, presentation

and interpretation of the data pertaining to the research objective. In this paper, in order to study the

consumer buying behavior in retail chains in India, one of the most prominent retail chains of the

Future Group, Big Bazaar has been taken. Big Bazaar has added a new dimension in the field of

Indian retailing because of its unique policies and features keeping in mind of the Indian consumers.

People prefer Big Bazaar for its variety of collection in apparels, groceries, accessories and foods.

For attainment of the objectives of the present paper, study of consumer buying behavior in Big

Bazaar will be quite helpful. In the present case Big Bazaar store in Bangalore (India) has been

considered for the purpose of data collection. The main target is to collect the consumer response

while shopping in Big Bazaar. Survey analysis has been carried out in which various factors

influencing the purchase process has been evaluated while collecting the feedback and response from

the consumers. Before presentation of the data, the methods, paradigms and approach which has

been followed in the current paper will be discussed with the justifications and also the drawbacks of

the process has been elucidated.

4.2 RESEARCH METHODS:According to Denscombe, (2007) there are many kids of analysis that the social researcher can use to

do this. In practice, though, the options tend to gravitate around the notions of quantitative and

qualitative research.

Quantitative Research: This method tends to be associated with numbers as the unit of

analysis. It is mostly applied in large-scale studies where the population is considerably

larger. It has got a specific focus and it contains a pre-determined research design. The wholepoint of quantitative research is to produce numerical data that are objective in the sense

that they exist independently of the researcher and are not the result of undue influence on the

part of the researcher himself or herself.

Drawback of Quantitative Research: The principle drawback of this kind of research is the

circumstance of the learning or experimentation is overlooked. Quantitative research does not

take into consideration effects in a usual situation or converse the connotation things have for

diverse populace as qualitative research does (Denscombe, 2007, p; 247).


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Qualitative Research: This method tends to be associated with words or images as the unit

of analysis. It relies on transforming information from observations, reports and recordings

into data in the form of the written word, not numbers. It is associated with description and

small scale studies where the population is considerably smaller. It has a holistic approach

and involves an emergent research design. Contrast to quantitative research as put forward by

Glauser and Strauss, (1967) it is frequently premised on the idea that the theory and the

methods will emerge during the course of the research, and will not be specified at the

beginning.

Drawback of Qualitative Research: This is mostly dependent on the researcher which

confers a subjective outlook of the process and the members. The data interpretation is prone

to the biasness of the researcher which twists the real meaning. It is quite time consuming

(Denscombe, 2007, p; 249).

4.2.1 Research Method for the present study: Since in this case, the main objective is to study

the buying behavior of consumers which involves a large-scale survey analysis of population, hence

quantitative method is justified for the present research. The data will be collected by survey

questionnaire methods where the questions will be close-ended and enumerative with numerical

representation of graphs and charts, hence quantitative method has been chosen.

4.3 PURPOSE OF THE RESEARCH STUDY:According to Salkind, (2010), research can be grouped into exploratory, descriptive, explanatory,

and evaluative.

Exploratory Research: These studies are usually undertaken when relatively little is known

about a phenomenon or an event. The goal is to determine whether a relationship exists

among several variables under scrutiny. This type of study often operates as a pilot study to

determine the feasibility of conducting a larger, more complex study and is mostly apt inquantitative studies. The main drawback of this kind of research is that it narrows down the

opportunities in an exploration (Salkind, 2010, p; 1254).

Descriptive Research: This kind of research attempts to describe a group of people, a

phenomenon or an event. It is one of the first steps in understanding social problems and

issues. It describes who is experiencing the problem, how widespread the problem is, and

how long the problem has existed. This kind of research is mostly apt in qualitative studies.

The main weakness of this kind of research is that it fails to explain the grounds behind a

specific condition (Salkind, 2010, p; 1254).


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Explanatory Research: This focuses on why variables are related to one another. One main

purpose of explanatory research is to test theory. In this kind of research, the investigator

measures the variables and then provides evidence that either supports or refutes the

contention that there is a cause and effect relationship that exists between these variables.

This is also used in quantitative research to explain the relationships between the variables.

The main weakness of this type of research it lacks relevancy to a particular situation

(Salkind, 2010, p; 1254).

3.3.1 Purpose of the present study: In this case of the research, exploratory approach will be

followed since here, the main objective is to find out the buying behaviors of consumers and then

to establish the relation between several factors (variables) which influences the purchase

decision. Again since the study concerns a large population.

4.4 RESEARCH APPROACH AND REASONING:The methodological layer represents the second layer of scientific research that defines guidelines for

the use of techniques, methods and basic requirements utilized within a research project. While

dealing with techniques and rules for the development of scientific theories, two different approaches

can be characterized:

Deductive Reasoning and Theory Testing: As put forward by Saunders, et al. (2003) this is

mainly characterized by the way conclusions are made. In due consideration of premises,

hypotheses are derived by reasoning on the basis of cause-and-effect relationships (Saunders,

et al., 2003, p.85; Schweitzer, 2004, p; 73). Herein, the underlying logic with which

conclusions are made is from the general to the specific (Robson, 1993, p; 19). The main

drawback of this kind of testing is that since it is concluded from particular occurrences, it

fails to go beyond those conditions and is restricted to a particular explanation.

Inductive Reasoning and Theory Building: In comparison to deductive reasoning, this kindof theory building concludes the way round by coming from particular observations and

generalizing them (Schweitzer, 2004, p; 72). The inductive reasoning suffers from the

biasness of the researcher and also conclusion is conferred as felt by the researcher.

4.4.1 Approach of the present study: Since the present research aims to examine the cause and

effect relationships between the various factors and the consumers buying process, with methods of

collection of data using numerical factors, thus establishing a relationship between the variables,

hence deductive theory testing will be most appropriate in this case.


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4.5 DATA COLLECTION METHODS:

According to Schiffman and Kanuk, (2007) there are mainly two types of data collected for the

purpose of the research work, based in the sources of data:

Primary Data: Original data performed by individual researchers or organizations to meet

specific objectives is known as primary data. In this case, primary data is collected for

establishing the objectives of the research paper (Schiffman and Kanuk, 2007, p; 46).

Secondary Data: A search for secondary data generally follows the statement of objectives.

Secondary information is any data originally generated for some purpose other than the

present research objectives. Secondary data includes both internal and external data. Since in

this case primary data has been collected, hence this method is not dealt in depth (Schiffmanand Kanuk, 2007, p; 44).

4.5.1 Designing Primary Data for Quantitative Research Process:

According to Schiffman and Kanuk, (2007) the basic designs which are used in a quantitative

research study are the following:

1. Observational Research

2. Experimentation

3. Surveys

1. Observational Research: Observational research is an important method of consumer research

because marketers recognize that the best way to gain in-depth understanding of the relationship

between people and products is by watching them in the process of buying/and or using the products.

Doing so enables observational researchers to comprehend what the product symbolizes to a

consumer and provides greater insight into the bond between people and products that is the essence

of brand loyalty. The two basic types of observational methods used by researchers are mechanical

observation and physical observation (Schiffman and Kanuk, 2007, p; 47).

2.Experimentation: It is possible to test the relative sales appeal of many types of variables, such as

package designs, prices, promotional offers, or copy themes through experiments designed to

identify cause and effect. In such experiments (called casual research), only some variables are

manipulated (the independent variables), while all other elements are kept constant. A controlled

experiment of this type ensures that any difference in the outcome (the dependent variable) is due to

different treatments of the variable under study and not to extraneous factors (Schiffman and Kanuk,

2007, p; 49).


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3.Surveys: If researchers wish to ask consumers about their purchase preferences and consumption

experiences, they can do so in person, by mail, by telephone, or online. Each of these survey methods

has certain advantages and certain disadvantages that the researcher must weigh when selecting the

method of contact given in table. 4

.

Table 4: COMPARISON OF SURVEY METHODS. SOURCE: SCHIFFMAN AND KANUK,

2007, P; 49

Personal Interview Surveys: This most often take place in the home or in retail shopping

areas. The latter, referred to as mall intercepts, are used more frequently than home

interviews because of the high incidence of not-at-home working women and the reluctance

of many people to allow a stranger into their home (Schiffman and Kanuk, 2007, p; 50). Telephone Surveys: These kinds of surveys are also used to collect consumer data; however

evenings and weekends are often the only times to reach telephone respondents, who tend to

be less responsive-even hostile-to calls that interrupt routine work (Schiffman and Kanuk, p;

50).

Mail Surveys: These kinds of surveys are carried out by sending questionnaires directly to

individuals at their homes. One of the major problems of mail questionnaire is a low response

rate, but researchers have developed a number of techniques to increase returns, such as

enclosing a stamped, self-addressed envelope, using a provocative questionnaire and sending

pre-notification letters as well as follow-up letters (Schiffman and Kanuk, p; 50).

Online Surveys: They are conducted through the internet. Because the samples respondents

are self-selected, the results cannot be projected to the larger population (Schiffman and

Kanuk, p; 50).


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4.5.2 Quantitative Research Data Collection Instruments:According to Schiffman and Kanuk, 2007 data collection instruments are developed as a part of a

studys total research design to systematize the collection ofdata and to ensure that all respondents

are asked the same questions in the same order. The two most important instruments are:

1. Questionnaires: It is mainly applied as a tool for conducting quantitative research.

Questionnaire should include both substantive questions and demographic questions which

should be unambiguous, interesting, objective and easy to complete. Questions can be

disguised or undisguised and is generally close-ended where the respondent merely checks

the appropriate answer from a list of options provided. These close ended questions are

simple to analyze, depict diagrammatically through graphs and tabulated (Schiffman and

Kanuk, 2007, p; 51).

2. Attitude Scales: Researchers often present respondents with a list of products or product

attributes for which they are asked to indicate their relative feelings or evaluations. The

various types of scales used are Likert Scale, Semantic Differential Scale, Behavior-intention

scales and Rank order scales (Schiffman and Kanuk, 2007, p;51)

4.5.2 Collection of Primary Data for the present study:

Primary data has been collected through mall intercepts survey (local store of Big Bazaar, Bangalore,

Koramangala Area). The questionnaire consisting of close-ended undisguised questions was

structured carefully to obtain the feedback of consumers regarding their purchase choice, choice of

store, demography and purpose of buying. The questions are structured and predetermined and the

same questions in the same order are presented to the respondents. The questions are simple, limited

in number and direct to avoid any kind of biasness. Data interpretation has been done through graphs

and charts thus concluding the outcome.

4.6 SAMPLING AND SAMPLE POPULATION:

Since it is almost always impossible to obtain information from every member of the population or

universe being studied, researchers use samples. According to Schiffman and Kanuk, 2007 a sample

is a subset of the population that is used to estimate the characteristics of the entire population

(Schiffman and Kanuk, 2007, p; 56). There are two types of sampling:

1. Probability Sampling: (Simple random sampling, systematic random sampling, stratified

random sampling, and cluster (area) sampling).

2. Non-probability Sampling: (Convenience Sampling, Judgment Sampling, Quota Sampling).


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For the present study, systematic random sampling has been used and the sampling details have been

given below:

1. Sampling Unit: Koramangala retail outlet of Big Bazaar in Bangalore.

2. Sampling Population: 50 respondents chosen randomly from the store visit.

3. Sampling Style: Systematic Random Sampling (In this a member of the population is selected at

random and then every nth person is selected.

4. Parameters Measured:

Demographics (Age, Sex)

Income Profile.

Choice of locations.

Frequency of Purchase.

Items for purchase.

Influence of friends and families while buying.

Reason for purchase.

Effect of promotional discounts and gift coupons.

Preference of stores.

4.7 PROFESSIONAL ETHICS, RELIABILITY AND VALIDITY:The main phenomenon of consumer behavior research studies is that is should be objective and free

from bias. Researchers should not indulge in supporting a predetermined conclusion by using biased

samples, biased questions, manipulating statistical analyses, or ignoring relevant information. These

all aspects have been duly considered in the whole process while collection and interpretation of

data.

Certain ethics should also be convoked while collecting the data from respondents. It has been tried

not to force the reluctant respondents for their feedback. Only those who willfully gave their

feedback have been concerned. It has been tried not to interfere with the normal process in the store

and data has been collected only after due consent from the store manager to carry out the research.

At the start of survey care has been taken to completely get acquainted with the consumers because

people often dislike being interrupted while shopping. The privacy and anonymity of the respondents

have been maintained throughout.

According to Schiffman and Kanuk, (2007) a study is valid if it does in fact, collect the appropriate

data needed to answer the questions or objectives stated in the first (introduction section) of the

research process. Complete coherence has been maintained with the objectives to be established and


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data has been collected which are related to the topic. The reliability of the whole process lies in the

framing of questions which are same for all the respondents and interpretation of those feedbacks are

done straightaway from the responses obtained without any manipulation or extrapolation.

4.8 CONCLUSION:This section thus has explained clearly the methodology, approach, purpose and modes of data

collection. From the above discussion, it can be concluded that the present research is quantitative in

nature, with a deductive reasoning and exploratory in nature. Primary data has only been collected in

this case by survey questionnaire analysis of respondents. From all aspects, reliability and validity of

data has been maintained through out the complete research process.


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Chapter 5: Findings and Analysis

The findings are based on the survey conducted in Koramangala retail outlet of Big Bazaar in

Bangalore where 50 respondents chosen randomly using systematic random sampling from the store

visitors. The main questionnaire was divided into four different sections, the sections are chosen such

that to answer the research question and reflect the objectives of the research. The first section is

about demographic profile and income to understand the respondents general background and the

visitors profile. Second section reflects purchasing habits and its relation to consumer behavior. The

title for this section is consumer purchase behavior. Third section is dedicated to external influences

such as schemes and promotions offered and its effects on consumer behavior.

5.1Part A: Demographics (Age, Sex)/ IncomeQ1. Name (Optional)

19 out of 50 respondents answered to this question. The low response for this question was due to the

optional nature of question and also owing to the choice of consumers to conceal their identity.

Q2. Your age falls between?

a. Less than 18 years

b. 18 or more up to 36 years

c. 36 or more up to 54 years

d. More than 54 years

The analysis to this answer show maximum respondents falling under the range of 18 till 36 age

bracket with almost 56% representation. The graph below describe this scenario.

1, 2%

28, 56%

14, 28%

7, 14%

Age Range

< 18

18 to 36

36 to 54

> 54


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Figure 15: The range of age for respondents at big bazar.

As we can see that the respondents age falls between the age range of 18 to 36. This indicates

towards the young consumers increasing as a customer for big bazaar. It is also analogous from the

fact that the middle income group population is increasing in India with buying power. This

population is mainly young in India and it falls almost in the same range.

Q3. Gender

a. Male

b. Female

The female respondents clearly exceed male respondents at big bazaar with almost 66 percent

representation of female candidates in our sample. This is clear indication of female dominated

consumer market for big bazaar. We can safely assume the same as general because Indian

households marketing for grocery items and other monthly items are usually preferred by females.

Hence, this is not coming as a surprise for Indian scenario.

Figure 16: Representation of gender distribution in the population.

Q4. Income Profile, Please choose from the below range.

a. Less than 15,000 per month

b. From 15,000 to 30,000 per month

c. From 30,000 to 45,000 per month

d. From 45,000 to 60,000 per month

e. More than 60,000 per month

Male

17

34%

Female

3366%

Genderwise Distribution of Population

Male

Female


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Figure 17: General income group classification of the respondents

The above graph indicates the maximum number of respondents falls from the income range of

60000

Income Range of Respondents

Income Range of Respondents


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Figure 18: Consumer buying preference for big bazar and organized retail

5.2Consumer Purchase Behaviour

Q6. How many members stay with you at present?

a. Single only

b. 2 to 4 member

c. 4 to 6 members

d. More than 6 members

This question was asked to understand about the members that are directly associated with the

purchase decisions of the individual. The members might be from the family or friends circle still the

total number can be a decisive factor in influence of purchase decisions. It can be safely assumed that

single individuals or the individuals with family size of less than 4 has high disposable income and

hence there purchase should effect at store. These individuals can then be checked for impulsive

buying and the purchased product type to see the pattern of such buyers. The pattern below indicates

dominance of bigger families as respondents with 40% representation for respondents with 4 to 6

members family. Another 34% respondents falls between 2 to 4 members range. This indicates the

popularity of big bazaar as a family store.

Local

Shop3

6% Any retail outlet

8

16%

organized retail18

36%

Big Bazar21

42%

Purchase preference for grocery needs

Local Shop

Any retail outlet

organized retail

Big Bazar


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Figure 19: Respondents family size and its effects on overall purchase behavior.

Q7. What is your purchase habit?

a. Bring a list of items and purchase accordingly

b. I end up buying beyond the list of items

c. Never use list and buy impromptu with utility items only

d. Buy at random and according to the display

This question was put to check the pattern of buying for the consumers. It is also asked to relate it

with the previous question and check the impulsive buying behavior with the disposable income and

decreased responsibilities for consumers. It is assumed that the responsibilities decrease and

disposable income increase with lesser members in the family. Clearly most of the members are

either bringing list with them but end up buying extra from the initial assumed items. Otherwise, the

respondents are generally buying according to the list. It is reflected from this response that the

buying behavior of individuals is affected due to the response of the family. Single individuals

depicts random buying habit with almost same representation as earlier question of single buyers.

Most of the respondents were family members and female and hence we see clear budgetary

purchase habits for the respondents. Most of the respondents are using list for purchase and hence

can be concluded that they are also coming up with their budget requirements in mind.

8, 16%

17, 34%

20, 40%

5, 10%

Members living with respondents

Single Only

2 to 4 members

4 to six members

More than 6 members


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Figure 20: Respondents and their purchase habit to check impulsive buying response.

Q8. How often do you come to purchase at big bazaar?

a. Less than a week

b. Weekly

c. Monthly

d. More than a month

e. Unplanned

Figure 21: Consumers visit preference to big bazar

11, 22%19, 38%

13, 26%

7, 14%

Purchase Habit of Individuals

Purchase using list

Bring list but also purchase

extra

Purchase imprompto

random buying

4, 8% 3, 6%

32, 64%

4, 8%

7, 14%

0

5

10

15

20

25

30

35

Less than a week Weekly Monthly More than a

month

Unplanned

Visit Frequency to Big Bazar


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The highest frequency of visit is for individuals coming for their monthly needs. This is reflected

from the analysis given. Another pattern for monthly visit is also related from above question of

planned purchase using the list and the budget. This is mainly because housewives who prefer to

purchase all monthly needs according to their budgetary requirements are coming for the purchase.

Big bazaar is preferred by such customers because of overall budget discounts offered by the store

and ease in buying and choosing the items.

Q9. What is the nature of items you purchase from big bazaar?

a. Entertainment

b. Grocery items

c. Fruits and vegetables

d. Garments and footwear

e. Others

f. Random purchase

Big Bazar is known for its cheap and value for money items. It is also a one stop shop for day to day

needs. Generally, the homemakers are coming to big bazaar for their monthly household items. It

includes a significant amount of grocery items. The responses received reflect this fact effectively.

Almost 42% of the respondents are coming for purchase of grocery items. Other categories receivealmost identical representation. Random purchase is also significant in Big Bazar.

Figure 22: Nature of general purchase as identified by the respondents.

3, 6%

21, 42%

9, 18%

6, 12%7, 14%

4, 8%

0

5

10

15

20

25

Entertainment Grocery Fruits andvegetables

Garments andfootwear

Randompurchase

Others

Items purchase from Big Bazar


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Q10. What is the main reason for purchase from Big Bazar?

a. Proximity from home (lesser distance)

b. Outing

c. Family Needs

d. Both outing and family needs

e. Discounts

f. Reliability of Products

Figure 23: Family needs and big bazar preferences

The big bazaar is preferred for its discounts and reliability. If we see, big bazaar has gained its

popularity due to discounting on products. Customers can buy items within budget enjoying

discounts. Some people prefer organized retail stores due to reliability of products which is also

reflected from the responses above, Another very big reason for purchase from Big bazaar is the

outing and family needs at same place, Persons coming with family can preferably enjoy some nice

time roaming in market and at the same time fulfill their purchase needs.

5.3Influence on Purchase Decisions

Q11. How is your purchase decision influence by friends and families while buying?

a. I am the sole decision maker

b. The purchase is partially influenced by familyc. The purchase depends upon the collective decision by family

3, 6% 21, 42%

9, 18%

6, 12%

7, 14%

4, 8%

0

2

4

6

8

10

12

14

16

Proximity Outing Family Needs Both Outing

and Needs

Discounts Reliability of

Products

Big Bazar Preference Reason


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d. I consider family and friend views for any buying decision

Figure 24: Family and friends influence purchase decisions.

We see above that friends and family influence decisions either partially or collectively. The graph

received is balanced for all the responses. The extreme of two views receive lesser response in

comparison. This is because Indian society is family oriented and family and friends influence mostdecisions. Still as we see that many of the respondents are single, hence the percentage of sole

decision makers is also significant. The category has received almost 22% of representation in total.

Q12. How promotional discounts and gift coupons affects your buying behavior?

a. End up buying more than budgeted amount

b. Buy promotional items often than preferred brand

c. Influence impulsive buying decisions

d. No effect

The promotions and discounts affect purchase decisions of individuals. We see the clear effect in

various areas by promotion and discounts. The respondents agree to effects in their responses. 34%

of the buyers gets affected and ends up in buying promotional items instead of their preferred brands

or products. Almost 28% agree that promotion influence them buying more than budgeted amount.

Impulsive buying was seen only in 14% respondents. At the same time, there was no effect on

another 24 percent of the respondents. Overall, promotional schemes and discounts are influentialand it can affect consumer buying behavior in significant amount.

11, 22%

18, 36%

15, 30%

6, 12%

Purchase decision influence of family

Sole decision maker

Partially influenced by family

Collective family decision

Consider only family views


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Figure 25: The influence of promotions and discount on purchasing decisions.

Q14. Why do you prefer purchasing of big bazaar stores?

a. All items under one roof

b. Variety

c. Low price and discounts

d. Easy to shop and choose

e. Brand name and trust

Figure 26: How big bazaar affect purchase decision and attract as brand.

Buy more thanbudget

1428%

Buy promotional

item instead ofpreferred brand

17

34%

Impulsive buying

714%

No effect

12

24%

Promotions and Discount Effects

Buy more than budget

Buy promotional item instead

of preferred brand

Impulsive buying

No effect

15, 30%

2, 4%

17, 34%

4, 8%

12, 24%

0

2

4

6

8

1012

14

16

18

One stop shop Variety Low

price, discount

Ease in shopping Brand Name and

trust

Influence of Big Bazar as brand


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This question can answer the individual preference on organized retails or brand purchase. The

answer to preference of big bazaar yield clear focus on three main aspects, Low prices and discounts

with 34% representation, One stop shop with 30 percent representation, Brand name and trust with

24 percent representation. Other options such as variety and ease in shopping did not receive much

response. Hence, we see that brand value, all products at one place and discounts are the main

attraction for the success of big bazaar. The company can work on these attributes to attract more

customers. Other organized retailers can also learn by this response and align their operations

accordingly. Most customers are attracted for price sensitivity and consider India as price sensitive

market for the organized retailers to combat competition.

Q15. What are the main problems with organized retail shops?

a. Long queues

b. No credit facilities as local stores

c. Incomplete range

d. Sub Standard Products

e. No clear assistance

Figure 27: Problems with organized retailers.

The problems that can be clearly identified by the above response chart are with the credit facilities

and queues. Generally local retailers give credit facilities that can be arranged in next month

purchase. This facility is missing from big retailers. Respondents at billing counters due to long

12, 24%

16, 32%

6, 12% 6, 12%

10, 20%

0

2

4

6

8

10

12

14

16

18

Long queues No credit facility Incomplete range Sub standard

products

Assistance

Main problems at organised retailers


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queues face other problem. Counters shall increase and the staff should be trained for more effective

operations in order to avoid such situations.

5.4Conclusion:

The study clearly identifies three areas and able to achieve some significant insight in consumer

buying behavior based on the discussions and responses received at Big bazaar outlet. These

responses provide good indication of buying behavior at organized retailers and can be safely

generalized for all organized retail stores. It is instrumental in defining buying patterns and consumer

behavior at such retail stores. The effects are discussed in subsequent chapters in detail to seek

further insight into the subject area.


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Chapter 6: Discussions:

The above analysis was based on the response received from big bazaar at Koramangala retail outlet.

The Survey was based on a questionnaire, which was divided into three parts. The first part about

demographics reveals some interesting facts about the nature of visitors at big bazaar retail outlet.

Consumers consider big bazaar as discount store and hence the visitors are largely from the middle to

higher income group. This fact is reflected from our response analysis. Main attraction of Indian

market is its middle-income group and its purchasing strength. All retailers are trying to cash on this

aspect of Indian scenario. Any retailer company can become successful if it understand this aspect of

consumer behavior, and big bazaar cash on the same aspect in its stores. A majority of visitors at big

bazaar are female who plan and act on budgetary requirements of the family. The age group

representation is usually young, it is that age group having higher disposable income, and who can

spend their earnings more lavishly. Big bazaar can implement policies, offer schemes and

promotions to attract this young crowd. The income range is middle to low and big bazaar is able to

attract this income group due to its discount structure and lower margin product offering. Most of the

respondents are preferring purchase from organized retails and this show the changing trend of

purchase from unorganized sector to organized retailers. This is because of the facilities and

purchasing experience of such organized stores.

The second section reflects purchasing habits and its relation to consumer behavior. The questions

are asked to view respondents purchasing preferences and habits in various scenarios. Most of the

respondents come from family and hence their decisions are also affected by family opinion and

needs. The members usually represent between two to six members. The analysis of buying behavior

patterns of consumers in Indian retail sector reveals some important facts during survey analysis.

Many factors such as influence of family, income range, discounts and others are underlying and

regulating the overall purchase decision process of consumers in retail scenario. The questions also

analyze other factors such as behavioral outlook, perception, buying necessity, etc. It is established

that such attributes also effect the purchase decisions and are capable of affecting buying decisions.

Third section is dedicated to external influences such as schemes and promotions offered and its

effects on consumer behavior. While long queues at billing and lack of credit facility are recognized

as problems with organized retailers, still many factors such as discounts, reliability, shopping

experience, customer assistance are factors, which are attracting consumers towards such retail

chains. These stores can attract more customers by offering discounts and promotions. This section


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examines such discount and promotion schemes and its effects on consumer behavior. It is

established from the findings that consumers end up buying promotional items and spend more than

budgetary requirements. Hence such schemes can increase customer spend ratio thereby increasing

profits. Also customers are effected by family decisions, discounts, brand name, trust, range etc.

Hence these factors should be considered while making any retail strategy.


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Ernst, R.,P. Kouvelis. (1999). The effects of selling packaged goods on inventory decisions.

Management Sci. 45(8) 11421155.

Feeny A., Vongpatanasin, T., and Soonsthan, A., (1996). Retailing in Thailand, International Journal

of Retail Distribution and Management 24 (8), 38-44

Fernandes M. Gadi, C., Khanna, A., Mitra, P and Narayanaswami, S., (2000) Indias retailing

comes of age, McKinsey Quarterly, 4, 95-102

dissertation for marketing

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