problems and prospects of retail business – a study with reference to

ZENITH

International Journal of Multidisciplinary Research

Vol.1 Issue 6, October 2011, ISSN 2231 5780

ww

w.z

enit

hre

sear

ch.o

rg.in

3

94

PROBLEMS AND PROSPECTS OF RETAIL BUSINESS –

A STUDY WITH REFERENCE TO SIVAKASI TALUK

DR. M. SELVAKUMAR*; DR. A. MUTHUMONI**

*Assistant Professor, PG and Research Department of Commerce,

Ayya Nadar Janaki Ammal College, Sivakasi – 626124.

**Principal, M.G.R. College of Arts and Science,

Hosur, Tamilnadu.

ABSTRACT

Retail industry is the largest industry in India, with an employment of around 8 per cent to

over 10 per cent of the country's Gross Domestic Product. Retail industry in India is expected

to rise 25 per cent yearly being driven by strong income growth, changing lifestyles, and

favorable demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion.

India retail industry is one of the fastest growing industries with revenue expected to amount

US$ 320 billion and is increasing at a rate of 5 per cent yearly. A further increase of 7-8 per

cent is expected in the industry of retail in India by growth in consumerism in urban areas,

rising incomes, and a steep rise in rural consumption. It has further been predicted that the

retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of

US$ 7.5 billion

For a retailer, it is very difficult to retain the potential buyer. Because the buyers are scattered

according to their convenience of purchasing. In order to keep possession of their sales

volume, the retailer has to face a stiff competition in the retail business. Majority of functions

have to be performed by owners themselves due to limitation of resources. So the researcher

made sincere attempt to analyse the Problems and Prospects faced by retailer in the study

area, during the course of starting and managing their enterprise.

___________________________________________________________________________

INTRODUCTION

Retail industry is the largest industry in India, with an employment of around 8 per cent to

over 10 per cent of the country's Gross Domestic Product. Retail industry in India is expected

to rise 25 per cent yearly being driven by strong income growth, changing lifestyles, and

favorable demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200

billion. India retail industry is one of the fastest growing industries with revenue expected to

amount US$ 320 billion and is increasing at a rate of 5 per cent yearly. A further increase of

7-8 per cent is expected in the industry of retail in India by growth in consumerism in urban

areas, rising incomes, and a steep rise in rural consumption. It has further been predicted that

the retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size

of US$ 7.5 billion

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

3

95

Shopping in India has witnessed a revolution with the change in the consumer buying

behavior and the whole format of shopping also altering. Industry of retail in India which has

become modern can be seen from the fact that there are multi- stored malls, huge shopping

centers, and sprawling complexes which offer food, shopping, and entertainment all under the

same roof.

India retail industry is expanding itself most aggressively, as a result a great demand

for real estate is being created. Indian retailers preferred means of expansion is to expand to

other regions and to increase the number of their outlets in a city. It is expected that by 2010,

India may have 600 new shopping centers.

In the Indian retailing industry, food is the most dominating sector and is growing at

a rate of 9 per cent annually. The branded food industry is trying to enter the India retail

industry and convert Indian consumers to branded food. Since at present 60 per cent of the

Indian grocery basket consists of non- branded items. India retail industry is progressing

well and for this to continue retailers as well as the Indian government will have to make a

combined effort.

SCOPE OF THE INDIAN RETAIL MARKET

The scope of the Indian retail market is immense for this sector is poised for the

highest growth in the next 5 years. The India retail industry contributes 10 per cent of the

countries GDP and its current growth rate is 8.5 per cent. In the Indian retail market the scope

for growth can be seen from the fact that it is increased to US$ 608.9 billion in 2009 from

US$ 394 billion in 2005.

The organized retailing sector in India is only 8 per cent and is expected to rise to 25-

30 per cent by the year 2012. There are under construction at present around 325

departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a

tremendous scope for growth in the Indian retail market.

The growth of scope in the Indian retail market is mainly due to the change in the

consumers‟ behavior. For the new generation have preference towards luxury commodities

which have been due to the strong increase in income, changing lifestyle, and demographic

patterns which are favorable.

STATEMENT OF THE PROBLEM

For a retailer, it is very difficult to retain the potential buyer. Because the buyers are

scattered according to their convenience of purchasing. In order to keep possession of their

sales volume, the retailer has to face a stiff competition in the retail business. Majority of

functions have to be performed by owners themselves due to limitation of resources. So the

researcher made sincere attempt to analyse the Problems and Prospects faced by retailer in

the study area, during the course of starting and managing their enterprise.

OBJECTIVES OF THE STUDY

The main objectives of the study are

To study the socio – economic conditions of the retailer in Sivakasi Taluk

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

3

96

To known the business profile of the retailers in Sivakasi Taluk

To analyse the problems faced by the retailers in Sivakasi Taluk

To analyse the opportunities and prospects of retail Business

To offer suggestions on the basis of the findings of the study.

LIMITATION OF THE STUDY

Due to paucity of time, the present study is conducted only retailers and nor covered

the performance of customers and their satisfaction in retailing. This study is restricted to

Sivakasi Taluk only and also applicable for a short period only.

METHODOLOGY OF THE STUDY

The study is designed as a descriptive and analytical one. Considerable data are

available both from primary and secondary data . The study is carried out with the help of

sample survey. The research problem and interview schedule have been formulated and

tested on the basis of the research objectives.

SOURCES OF DATA

The required data for the present study are collected both from Primary and

Secondary Sources. Primary data are collected during 2009 with the help of schedule

designed for the Interview Schedule. The Secondary data are also collected from the various

standard text books, research articles, reports, leading newspapers, magazines and journals.

These have constituted a supportive literature for the purpose of carrying out the research

work.

SAMPLING DESIGN

The population of the current study is the retailer in Sivakasi Taluk. It is not feasible

to collect data from the entire population. Therefore the researcher has used the sampling

technique for data collection. The researcher has selected 200 sample retailers on the basis of

convenience sampling technique.

PLAN OF ANALYSIS

To analyse and interpret the collected data, the researcher has been used the tools like

Percentages, Weighted Arithmetic Average Method, Chi- Square Test, Kolmogrov – Smirnov

(K-S) Test, Garrett Ranking Method, Sign Test .

A five point scale has been used to measure the level of satisfaction in retail business.

Chi- Square test has been applied to test the significant difference in the level of satisfaction.

Sign test, one of the non- parametric methods, has been used to know whether there is

any significant difference between the “Yes” and “No” responses of retailers for each of the

given statements regarding problems faced by the retailer in retail business.

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

3

97

Kolmogrov- Smirnov (K-S) Test is used to analyse the Prospects of retail business in

Sivakasi Taluk.

HYPOTHESES OF THE STUDY

The hypotheses framed for this study are as follows

There is no significant difference in the opinion of retailers about the prospects

of retail business in Sivakasi Taluk.

There is no significant difference in the opinion of retailers about their

problems.

GENDER WISE CLASSIFICATION OF THE RESPONDENTS

The researcher has classified the respondents on the basis of gender. The gender wise

classification of respondents is displayed in Table 1

TABLE 1

GENDER WISE CLASSIFICATION OF THE RESPONDENTS

S.NO. Gender No. of Respondents Percentage

1.

2.

Male

Female

185

15

92.50

7.50

Total 200 100.00

Source : Primary Data

The above table shows that out of 200 respondents, 185 are male respondents (92.5

%) and 15 respondents are female (7.5 %)

COMMUNITY WISE CLASSIFICATION OF THE RESPONDENTS

The researcher has also analysed the community of the respondents. The data

regarding community of the respondents is highlighted in Table 3

TABLE 3

COMMUNITY WISE CLASSIFICATION OF THE RESPONDENTS

S.NO. Community No. of Respondents Percentage

1.

2.

3.

Forward

Most Backward

Backward

20

58

82

10.00

29.00

41.00

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

3

98

4. SC / ST 40 20.00

Total 200 100.00


It is lucid from the above Table 3 that 82 (41%) respondents are backward

community,58 (29%) respondents are belong to backward community, 40 (20%) of them are

SC / ST and 20 (10% ) respondents are forward community.

RELIGION WISE CLASSIFICATION OF THE RESPONDENTS

Table.4 points out the Religion wise classification of the respondents in the study

area.

TABLE 4

RELIGION WISE CLASSIFICATION OF RESPONDENTS

S.NO. Particulars No. of Respondents Percentage

1.

2.

3.

Hindu

Muslim

Christian

135

45

20

67.50

22.50

10.00

Total 200 100.00


The above Table 4 brings in view that, 135 (67.50%) respondents are Hindu, 45

respondents (22.50%) are Muslim, and the remaining 20 (10%) of them are Christian.

LITERACY LEVEL OF THE RETAILERS

The literacy level is one of the important factors which also influence the behaviour,

tastes, living standards and aspirations. To ascertain the literacy level of the respondents, a

study was made and the findings are presented in the following Table 5

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

3

99

TABLE 5

LITERACY LEVEL OF RESPONDENTS


1.

2.

3.

4.

5.

6.

Up to SSLC

HSC

Undergraduate

Postgraduate

Diplomo

Professional

35

25

65

42

28

5

17.00

12.50

32.50

21.00

14.00

2.50

Total 200 100.00


It is observed from the above table that, exactly 32.5 per cent of the respondents are

undergraduate, 21 per cent of the respondents are Post graduate, 17.5 per cent of the

respondents are having qualification up to SSLC, 14 per cent of the respondents are Diploma

holders, 12.5 per cent of the respondents are Higher Secondary and remaining 2.5 per cent of

the respondents are Professionals.

INCOME PROFILE OF THE RESPONDENTS

Money is an important source to make use of any things. Generally the rich people are

having higher purchasing power than that of poor people. So the researcher has classified the

various informants according to their level of income. The following Table 6 bears out an

evidence of the data.

TABLE 6

INCOME PROFILE OF THE RESPONDENTS

S.NO. Community No. of Respondents Percentage

1.

2.

3.

4

4.

Less than Rs 10,000

Rs 10,000 – Rs 20,000

Rs 20,000 – Rs 30,000

Rs 30,000 and above

67

55

43

35

33.50

27.50

21.50

17.50

Total 200 100.00


ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

00

Table 6 shows that out of 200 respondents, 33.50 per cent are earning less than Rs

10,000 per month, followed by 27.50 per cent of respondents who earn Rs 10,000 to Rs

20,000 per month, 21.50 per cent of the respondents earn between Rs 25,000 and Rs 30,000

and the remaining 17.50 per cent of the respondents earn Rs 30,000 and above per month.

CATAGORIES OF RETAILERS

The researcher categorized the retailers according to the nature of goods and services

they deal. The highlights of this analysis is shown in Table 7

TABLE 7

CLASSIFICATION OF RETAILERS ON THE BASIS OF THE PRODUCT DEALED


1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Grocery Shop

Stationery

Food

Fireworks

Electronic Products

Textile

Fancy Store

Food wear

Gold & Gift items

Medical Products

Durables

45

32

15

15

9

15

11

10

25

18

5

22.50

16.00

7.50

7.50

4.50

7.50

5.50

5.00

12.50

9.00

2.50

Total 200 100.00


It is understood from the Table 7 that 45 respondents are Grocery shop retailers which

occupies 22.50 per cent , 16 per cent of the respondents are Stationery retailers, 12.50 per

cent of the respondents are Gold and Gift items retailers, 9 per cent of the respondents are

Medical products retailers, 7.5 per cent of the respondents are Food, Fireworks, and Textile

retailers, 5.50 per cent of the respondents are Fancy store retailers, 5 per cent of the

respondents are Footwear retailer, 4.5 per cent of the retailers are Electronic products, and

remaining 2.5 per cent of the respondents are Durables retailers.

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

01

PREVIOUS EXPERIENCE OF THE RETAILER

The researcher has also found out the previous experience for doing the business.

Table 8 shows the Experience of the retailers in their business.

TABLE 8

PREVIOUS EXPERIENCE OF THE RETAILERS


1.

2.

Experienced

Not Experienced

89

111

44.50

55.50

Total 200 100.00


It is inferred from the above table that 55.50 per cent of respondents do not have

previous experience in their business whereas the remaining 44.50 per cent have previous

experience in their business.

NATURE OF THE BUSINESS

Table 9 represents the information regarding the Nature of Business of the sample

retailers in the study area.

TABLE 9

NATURE OF BUSINESS


1.

2.

Hereditary

First Generation

150

50

75.00

25.00

Total 200 100.00


The above table upholds that 75 per cent of the respondents are doing the retail

business as hereditary and remaining 25 per cent of the respondents are the first generation

businessman.

NATURE OF DECISION MAKING

Decision Making is an important role in business activities. The researcher has also

collected the information about the business decisions of the retailers. Table 10 reveals this

analysis.

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

02

TABLE 10

NATURE OF DECISION MAKING


1.

2.

3.

4.

Independent decision

Consult with family members

Consult with employees

Professional advice

120

45

8

27

60.00

22.50

4.00

13.50

Total 200 100.00


It is noted from the above table that 120 respondents (60 %) have taken independent

decision; 45 respondents (22.50%) have consult with family members; 27 respondents

(13.50%) seek professional advice for decision and remaining 8 respondents (4%) have

consulted with employees.

BUSINESS AFFECT THE FAMILY LIFE

The researcher has investigated about the business which affects the family life of

the respondents. The piece of information about the influence of business on family is

displayed in Table 11

TABLE 11

BUSINESS AFFECT THE FAMILY LIFE


1.

2.

Affect

Not Affect

32

178

16.00

89.00

Total 200 100.00


The Table 11 elicits the fact that 178 respondents (89%) feel that the business

activities not affect the family life and remaining 32 respondents (16%) feel that the business

activities affect the family life.

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

03

FORM OF HELP IS PROVIDED BY FAMILY MEMBERS

Manpower is the main pillar of an organization. Depending upon the needs and

requirements, family members help the retailers. Table 12 shows the form of help provided

by the family members.

TABLE 12

FORM OF HELP PROVIDED BY THE FAMILY


1.

2.

3.

4.

5

Manual Help

Financial Help

Advice

Business Tips

Others Helps

52

75

36

24

2

27.51

39.68

19.05

12.70

1.06

Total 189 100.00


Note : Out of 200 respondents only 189 respondents have received family support.

It has been found from the above table that out of 189 respondents, 39.68 per cent of

respondents have received financial help from their family members, 27.51 per cent of

respondents have received manual help, 19.05 per cent of respondents have received advice

from their family members and 12.70 per cent of respondents have received business tips

from their of family members and remaining 1.05 per cent of respondents have getting other

helps from their family.

PLACE OF ESTABLISHMENT

The physical environment exercises a significant role on the attitude of the customers.

Hence the researcher analyses the place of establishment and its influence in business of retail

shop. Table 13 exhibits the details about the place of retail shop.

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

04

TABLE 13

PLACE OF ESTABLISHMENT

S.No. Particulars No. of Respondents Percentage

1.

2.

3.

4.

Home based

Nearer to residence

Industrial area

Residential area

35

44

25

96

17.50

22.00

12.50

48.00

Total 200 100.00


It is lucid from the Table 13 that 96 (48%) respondents have the business units in

residential area, 44 (22%) respondents locate the business units nearer to their residence,

35(17.5%) respondents do the business home based and remaining 25 (12.5% ) respondents

have the business units in industrial area.

FORM OF ORGANISATION

Table 14 shows the form of organization of retail business.

TABLE 14

FORM OF ORGANISATION


1.

2.

3.

4.

Sole Trader

Partnership

Limited company

Others

110

85

5

-

55.00

42.50

2.50

-

Total 200 100.00


It is clear from the Table 14 that 55 per cent of the respondents are doing the business

under sole trader form whereas 42.50 per cent of the respondents are forming the partnership

for doing the business, 2.50 per cent of the respondents are running the business as limited

company form

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

05

REASONS FOR SELECTING RETAIL BUSINESS

The retailers are choosing retail business for different reasons. The researcher has

identified some reasons like previous experience, technical qualification, and family business

and so on. Moreover, to identify the reason which is the most vital one to the researcher has

used Garret‟s Ranking Test. Table 15 shows the responses of retailers about the reason for

selecting retail business in Sivakasi Taluk.

TABLE 15

REASONS FOR SELECTING RETAIL BUSINESS

S.No.

Reason

Rank

Total 1 2 3 4 5 6 7

1. Previous Experience 42 25 37 22 28 25 21 200

2. TechnicalQualifiaction 31 26 33 35 21 20 34 200

3. Family Business 39 48 28 32 16 15 22 200

4. Support from family

members 26 43 18 22 38 28 25 200

5. Owing infrastructure

facilities 21 37 40 39 14 21 28 200

6. Demand for the product

or services 18 12 28 13 43 39 47 200

7. To avail Government

concessions 23 9 16 37 40 52 23 200

Total 200 200 200 200 200 200 200


There are large numbers of reasons for choosing the retail business. Seven reasons

that choosing retail businesses by the retailers. They are previous experience, technical

qualification, family business, and support from family members, owing infrastructure

facilities, demand for the product or services, to avail government concessions. The

respondents are asked to rank the reasons on their willingness. The opinion of the

respondents is given in Table 15.

Table 16 furnishes the Garret‟s scores awarded to each reason for selecting the retail

business. The highest score is awarded to “Family Business”, followed by “Previous

Experience”, the least score is awarded to “Demand for the product or service”.

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

06

TABLE 16

REASONS FOR SELECTING RETAIL BUSINESS – GARRETS RANKING

S.No. Reasons Garrets Score Average

Score

Garrets

Rank

1. Previous Experience 10755 53.78 II

2. Technical Qualifiction 10180 50.90 V

3. Family Business 11170 55.85 I

4. Support from family members 10200 51.00 IV

5. Owing infrastructure facilities 10324 51.62 III

6. Demand for the product or

services

736 43.68 VII

7. To avail Government concessions 9235 46.12 VI

Source: Primary Data

Table 16 shows the Garret Scores and the average scores. The average scores are

ranked according to their values. The first rank is given to” Family Business”, “Previous

Experience” got the second rank, “Owing infrastructure facilities” places the third rank, the

fourth rank is given to “Support from family members”, “Technical Qualification” got the

fifth rank, “To avail Government concessions” got the sixth rank and the last rank is given to

“Demand for the product or services”.

UTILISATION OF THE CAPACITY

The research study has brought lime light on information relating to the utilization of

entire capacity made by the retailer. This detail is presented in Table 17

TABLE 17

UTILISATION OF THE CAPACITY


1.

2.

Utilised

Not utilized

160

40

80.00

20.00

Total 200 100.00


ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

07

It is observed from the Table 17 that 160 respondents (80%) have utilized their entire

capacity and remaining 40 respondents (20%) have not utilized their entire capacity.

CAUSES FOR UNDER UTILISATION

The researcher has identified the causes for under utilization of resources. Table 18

shows the details of under utilization of resources. From the above details the researcher has

enlisted the causes as under

TABLE 18

RANKING OF CAUSES FOR UNDER UTILISATION

S.NO. Particulars Weighted Arithmetic Mean Rank

1. Non availability of raw material 3.75 3

2. Stock accumulation 3.40 4

3. Lack of working capital 4.40 1

4. Labour problems 3.85 2

5. Technical problems 2.55 6

6. Low profit margin 3.05 5

Source : Processed Data

It is inferred from the ranking proposal that the lack of working capital got the rank

with theWeighted Arithmetic Mean of 4.40, labour problem got second rank with 3.85, Non

availability of raw material got third rank with the score value of 3.75 and least score value

2.55 is got by technical problems.

SOURCES OF PURCHASE OF MATERIALS

Generally the retailers have many sources to purchase the materials of the business.

To know the major source of purchase, this analysis is made and presented in Table 19.

TABLE 19

SOURCES OF PURCHASE OF MATERIAL


1.

2.

3.

Open Market

Government Quota

Other Sources

173

11

16

86.50

5.50

8.00

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

08

Total 200 100.00


It is clearly exhibited in the above table that 173 (86.50%) respondents have

purchased the material from the open market, 16 respondents have procured the materials

from other source like directly from the producers or manufacturers and only 11 retailers

purchased the raw material from government quota.

MODE OF PURCHASES

The retailers are purchasing the raw material both for cash and credit. It depends

upon the quantum of purchase. The researcher has analysed and the results are exhibited in

the following Table 20

TABLE 20

MODE OF PURCHASES

S.No. Particulars No .of Respondents Percentage

1.

2.

3.

Cash

Credit

Both

52

78

70

26.00

39.00

35.00

Total 200 100.00


It is apparent from the above Table 20 that 78 respondents (39%) have purchased the

products under credit, 70 respondents (35%) have purchased the materials for both cash and

credit terms and remaining 52 respondents (26%) have purchased products only against cash

SOURCES OF FINANCE

Finance holds the key to all business activity. No business activity can ever prosper

without adequate financial support. The researcher has made an attempt to analyse the

sources of finance for retail business in the Sivakasi Taluk. The following Table 21 shows the

sources of finance.

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

09

TABLE 21

SOURCES OF FINANCE


1.

2.

3.

Owned funds

Borrowed funds

Owned and Borrowed

45

95

60

22.50

47.50

30.00

Total 200 100.00


It is clear from the Table 21 that 47.50 per cent of respondents have used borrowed

funds, 30 per cent of respondents have used both owned and borrowed funds for their

business and remaining 22.50 per cent of respondents have used owned funds for their

business.

SOURCES OF BORROWED FUNDS

Usually the funds are borrowed from commercial banks, money lenders, friends,

relatives and so on. The researcher has analysed and presented the resulted in Table 22

TABLE 22

SOURCES OF BORROWINGS

S.No. Particulars No .of Respondents Percentage

1.

2.

3.

4.

5.

6.

7

Relatives

Friends

Commercial Banks

Co-operative Banks

Financial Institutions

Money Lenders

Any other

32

26

8

4

9

16

-

33.68

27.37

8.43

4.21

9.47

16.84

-

Total 95 100.00

Source:PrimaryData

Note : Out of 200 respondents, 95 respondents have used borrowed funds.

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

10

It is evident from the above Table 22 that, 33.68 per cent of respondents have

borrowed funds from their relatives, 27.37 per cent of respondents have borrowed funds from

friends, 16.84 per cent of respondents have borrowed funds from money lenders. 9.47 per

cent of respondents have borrowed funds from financial institutions, 8.43 per cent of

respondents have borrowed funds from commercial banks and remaining 4.21 per cent of

respondents have borrowed funds from co-operative banks.

AVAILMENT OF GOVERNMENT ASSISTANCE

Table 23 represents the information regarding the avail of government assistance by

the retailers.

TABLE 23

AVAILMENT OF GOVERNMENT ASSISTANCE


1.

2.

Availed

Not Availed

72

128

36.00

64.00

Total 200 100.00


The above table upholds that 64 per cent of respondents are not availed the

government assistance and remaining 36 per cent of respondents are availed government

assistance for the business purposes.

FORMS OF ASSISTANCE

The researcher has focused the information about forms of assistance availed by the

retailers. Table 24 shows the information about the form of assistance.

TABLE 24

FORMS OF ASSISTANCE


1.

2.

3.

4.

Loan

Subsidy

Power concession

Any other

22

18

32

-

30.56

25.00

44.44

-

Total 72 100.00


ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

11

Note : Out of 200 respondents, 72 respondents have avail government assistance

It is observed that 32 respondents (44.44%) has got power concession from

government assistance, 22 respondents (30.56%) got loan from government institution and

remaining 18 respondents (25%) got government subsidy for their business.

MOTIVATING FACTORS OF RETAILERS

Several factors motivate the respondents to select the retail business. The distribution

of respondents according to the motivating factors is presented in Table 25

TABLE 25

MOTIVATING FACTORS


1.

2.

3.

4.

5.

6.

7.

Partners

Wife or Husband

Other family members

Friends

Relatives

Government officials

Others

58

36

22

47

28

9

-

29.00

18.00

11.00

23.50

14.00

4.50

-

Total 200 100.00


It is evident from the Table 25 that 29 per cent of respondents are motivated by their

parents, 23.50 per cent of respondents are motivated by their friends, 18 per cent of

respondents are motivated their wife or husband, 14 per cent of respondents are motivated

from relatives, 11 per cent of respondents are motivated their family members and remaining

4.50 per cent of respondents are motivated by government officials to become retailers.

PROBLEMS OF RETAILERS

The retailers have so many problems out of which the research taken into account the

problems like Personal, Labour, Marketing and Finance. The details of problems of retailers

are given in Table 26

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

12

TABLE 26

PROBLEMS OF RETAILERS

S.No. Problems No.

Respondents

Total

Respondents Percentage

1

2

3

4

Personal Problems

Labour Problems

Marketing Problems

Finance Problems

182

175

200

200

200

200

200

200

91

87.5

100

100

Source: Primary Data

It is observed from the above table that 91 per cent and 87.5 per cent of retailers face

the personal problems and labour problems respectively. The above table also reveals that

100 per cent retailers face marketing and finance problems in their retail business

OPINION OF RETAILERS ABOUT PERSONAL PROBLEMS

In order to know the Personal Problem faced by the retailers they were given 11

statements and were asked about their opinion. The responses of retailers about Personal

Problems are shown in Table 27

TABLE 27

OPINION OF RETAILERS ABOUT PERSONAL PROBLEMS

S.No Particulars Yes No Total

1. Poor risk taking ability 112

(61.54)

70

(38.46)

182

(100)

2. Lack of proper training*

49

(26.92)

133

(73.08)

182

(100)

3. Lack of leisure* 57

(31.32)

125

(68.86)

182

(100)

4. Health problems 108

(59.34)

74

(40.66)

182

(100)

5. Excessive burden of work and

responsibility

132

(72.53)

50

(27.47)

182

(100)

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

13

6. Excessive tensions and challenges 175

(96.15)

7

(3.85)

182

(100)

7. Lack of knowledge about competition 158

(86.81)

24

(13.19)

182

(100)

8. Lack of knowledge about technology 119

(65.38)

63

(34.62)

182

(100)

9. Occupational mobility 144

(79.12)

38

(20.88)

182

(100)

10. Dual duties 111

(60.99)

71

(39.01)

182

(100)

11. Non co-operation from family members

75

(41.21)

107

(5.79)

182

(100)


Note : The figures in brackets show percentage to total

Table 27 shows the details about the Personal problems of retailers in Sivakasi.

Among 182 retailers, those who have the personal problems, 112 respondents (61.54% ) have

the problem of “Proper risk taking ability”, 49 respondents (26.92%) have the problem of

“Lack of proper training”, 57 respondents (31.32%) have the problem of “Lack of leisure”,

108 respondents (59.34% ) have the problem of “Health problem”, 132 respondents (72.53%

) have the problem of “Excessive burden of work and responsibility”, 175 respondents

(96.15%) have the problem of “Excessive tensions and challenges”, 158 respondents

(86.81%) have the problem of “Lack of knowledge about competition”, 119 respondents

(65.38% ) have the problem of “Lack of knowledge about the various improved technology”,

144 respondents (79.12% ) have the problem of “Occupational mobility”, 111 respondents

(60.99% ) have the problem of “Dual duties” and remaining 75 respondents (41.21%) have

the problem of “Non co-operation from family members”.

OPINION OF RETAILERS ABOUT LABOUR PROBLEMS

In order to know the Labour problems in Sivakasi Taluk, the retailers were given 6

statements and were asked about their opinion. These responses of retailers about Labour

problems are shown in Table 28

TABLE 28

OPINION OF RETAILERS ABOUT LABOUR PROBLEMS

S.No. Particulars Yes No Total

1. Absenteeism 120

(68.59)

55

(48.57)

175

(100)

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

14

2. Labour Turn over* 72

(41.15)

103

(58.85)

175

(100)

3. Union Activities* 45

(25.71)

130

(74.29)

175

(100)

4. Retention of Labour* 32

(18.29)

143

(81.71)

175

(100)

5. Negative attitude of Labour 144

(82.29)

31

(17.71)

175

(100)

6. Higher Wages 111

(63.43)

64

(36.57)

175

(100)

Source:PrimaryData

Note: The figures in the brackets show percentage to total

Table 28 shows the details about the Labour Problems of retailers in Sivakasi Taluk.

Among 175 retailers, those who have the Labour problems, 120 respondents (68.59%) have

the problem of “Absenteeism of Labour”, 72 respondents (41.15%) have the problem of

“Labour Turn Over”, 45 respondents (25.71%) have the problem of “Union Activities”, 32

respondents (18.29 %) have the problem of “Retention of Labour”, 144 respondents (82.29%)

have the problem of “Negative attitude of Labour” and remaining 14 respondents (63.43% )

have the problem of “Higher Wages”.

OPINION OF RETAILERS ABOUT MARKETING PROBLEMS

In order to know the Marketing problems in Sivakasi Taluk, the retailers were given 5

statement and were asked about their opinion. These responses of retailers about Marketing


TABLE 29

OPINION OF RETAILERS ABOUT MARKETING PROBLEMS

S.No. Particulars Yes No Total

1. Competition from other retailers

168

(84.00)

32

(16.00)

200

(100)

2. Competition from Supermarkets

175

(87.50)

25

(12.50)

200

(100)

3. Lack of information about changing market

133

(66.50)

67

(33.50)

200

(100)

4. Availability of sub standard product in the

market

144

(72.00)

56

(28.00)

200

(100)

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

15

5. Credit sales

180

(90.00)

20

(10.00)

200

(100)


Note : The figures in the brackets show percentage to total

Table 29 show the details about the Marketing Problems of retailers in Sivakasi

Taluk. Among 200 retailers, those who have the Marketing Problems, 168 respondents

(84% ) have the problem of “Competition from other retailers”, 175 respondents (87.50%)

have the problem of “Competition from Supermarkets”, 133 respondents (66.50%) have the

problem of “Lack of information about changing market”, 144 respondents (72%) have the

problem of “Availability of sub standard product in the market” and remaining 180

respondents (90% ) have the problem of “Credit Sales”.

OPINION OF RETAILERS ABOUT FINANCIAL PROBLEMS

In order to know the Financial problems in Sivakasi Taluk, the retailers were given 6

statement and were asked about their opinion. These responses of retailers about Financial


TABLE 30

OPINION OF RETAILERS ABOUT FINANCIAL PROBLEMS

S.No Particulars Yes No Total

1. Inadequate fixed capital

133

(66.50)

67

(33.50)

200

(100)

2. Inadequate working capital

170

(85.00)

30

(15.00)

200

(100)

3. Problem of bad debts

165

(82.50)

35

(17.50)

200

(100)

4. Difficulties in getting Government

concessions/Subsidies

183

(91.50)

17

(8.50)

200

(100)

5. Inability to provide securities for loan

144

(72.00)

56

(28.00)

200

(100)

6. Reluctance of financial Institutions to

extend credit to retailers

175

(87.50)

25

(12.50)

200

(100)

Source :PrimaryData

Note : The figures in brackets show percentage to total.

Table 30 shows the details about the Financial Problems of retailers in Sivakasi

Taluk. Among 200 retailers, those who have the Marketing Problems, 133 respondents

(66.50%) have the problem of “Inadeqate of fixed capital”, 170 respondents (85%) have the

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

16

problem of “Inadequate of working capital”, 165 respondents (82.50% ) have the problem of

“Bad debts”, 183 respondents (91.50%) have the problem of “Difficulties in Government

concessions”, 144 respondents (72 %) have the problem of “Inability to provide securities for

loan” and remaining 175 respondents (87.50%) have the problem of “Reluctance of financial

Institutions to extend credit facilities to retailers”.

SIGN TEST

Sign Test is one of the Non – parametric methods in statistical work that can be used

with either nominal or ordinal data. It requires less restrictive assumptions concerning the

level of data measurement. The sign test has been used to test the following Null Hypothesis

was framed for this study.

There is no significant difference between the „Yes‟ and „No‟ responses of the Retailers

regarding the various problems faced by the retailers in Sivakasi Taluk.

HYPOTHESIS TESTING PROCEDURE

For recording the responses of 200 sample retailers, „+‟ Sign will be recorded if the

retailers response is „Yes‟ for each statement framed for this study or a „-‟ recorded if the

retailers response is „No‟ for that statement. Using this procedure the responses of all the

sample retailers are recorded in terms of „+‟ or „-‟ signs.

If the difference is due to chance effects, the probability of a „+‟ sign for any

statement is 0.50 as is the probability for „-‟ sign.

The purpose of this study is to determine whether or not the „Yes‟ and „No‟ responses

of retailers for each statement are equal. Letting „P‟ indicate the proportion of the retailers

response „Yes‟ we would like to test the following hypothesis:

Hypothesis Conclusion

Null hypothesis Ho : P = .50 No Significant difference in the responses of

Retailers

Alternate hypothesis H1: P = .50 A Significant difference in the responses of

Retailers

Sign Test can be applied for the small sample case ( n < 20 ) and for large sample case

( n > 20 ). Here „n‟ refers to number of retailers who responded to each statement as „Yes‟

and „No‟. For all the statements which relate to Problems faced by Retailers for this study, the

number of „Yes‟ and „No‟ responses of employees are greater than 20 that is n >20 ( large

sample).

LARGE SAMPLE

Using the Null Hypothesis Ho : P = .50 and a sample size n > 20 the normal

approximation of the sampling distribution for the number of „+‟ sign as follows:

Mean µ = 0.5n

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

17

Standard Deviation σ = √ 0.25n

The value of standardized test statistic „Z‟ is calculated as follows:

Number of „+‟ signs - µ

Z = ----------------------------

σ

Testing the Null hypothesis ( Ho) of no difference using 5 per cent level of

significance, the acceptance region will be

Z = - 1.96 to + 1.96.

PROBLEMS OF RETAILERS – APPLICATION OF SIGN TEST

In order to know whether there is any significant difference in the responses of

retailers for each of the statement regarding Personal Problems, Labour Problems, Marketing

Problems and Finance Problems, Sign – test has been applied.

The results of Sign – Test with regard to responses of retailers in Sivakasi for each of

the statement of Problems are given in Table 31

TABLE 31

PROBLEMS OF RETAILERS – APPLICATION OF SIGN TEST

S.No. Problems Result

1

2

3

4

Personal Problems

Labour Problems

Marketing Problems

Finance Problems

Significant

Significant

Significant

Significant

From the above table, it is understand that there is a significant difference between the

opinions of responses of retailers about the problems of retail business. Therefore it is

concluded that the null hypothesis framed for this purpose is rejected.

PROSPECTS OF RETAIL BUSINESS IN SIVAKASI

The drivers aiding the growth of the industry are called as Prospects. The following

Prospects are aiding the growth of the retail industry in Sivakasi Taluk. These Prospects are

presented in Table 32

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

18

TABLE 32

PROSPECTS OF RETAIL BUSINESS IN SIVAKASI

S.No. Opinion SA A No DA SDA Total

1. Sivakasi is suitable to retail

business

132

(66)

56

(28)

8

(4)

4

(2)

- 200

(100)

2. Chance to earn more profit 156

(78)

39

(19)

3

(2)

2

(1)

-

-

200

(100)

3. Needs lesser investment 102

(51)

86

(43)

-

(-)

8

(4)

4

(2)

200

(100)

4. Low competition in retail business 25

(12)

42

(21)

75

(38)

32

(16)

26

(13)

200

(100)

5. Does not needs advanced

technology

134

(67)

52

(26)

4

(2)

10

(5)

-

-

200

(100)

6. Government support to retail

business is enough

106

(53)

48

(24)

40

(20)

6

(3)

-

-

200

(100)

7. Financial assistance from

Institution is enough

86

(43)

69

(34.5)

38

(19)

7

(3.5)

-

-

200

(100)

8. Availability of sufficient labour

force

122

(61)

68

(34)

10

(5)

-

-

-

-

200

(100)

9. Better chance to growth 132

(66)

58

(29)

6

(3)

4

(2)

-

-

200

(100)

10. Less political influences 137

(68.5)

43

(21.5)

18

(9)

2

(1)

-

-

200

(100)

11. Low cost of factors of production 111

(55.5)

32

(16)

39

(19.5)

18

(9)

-

-

200

(100)

12. Lesser or No formalities of

Registration

69

(34.5)

89

(17.8)

32

(16)

7

(3.5)

3

(1.5)

200

(100)

13. No speculation affect in retail

business

96

(48)

27

(13.5)

42

(21)

35

(17.5)

-

-

200

(100)

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

19

14. Sufficient Transport facilities 127

(63.5)

41

(20.5)

28

(14)

4

(2)

-

-

200

(100)

15. Better chance to business

expansion

108

(54)

63

(31.5)

18

(9)

11

(5.5)

-

-

200

(100)

16. Higher Quantum of population 138

(69)

48

(24)

9

(4.5)

5

(2.5)

-

-

200

(100)

17. Other infrastructure 101

(50.5)

59

(29.5)

29

(14.5)

11

(5.5)

-

-

200

(100)

18. No need for any specified

knowledge

55

(27.5)

75

(37.5)

15

(7.5)

50

(25)

5

(2.5)

200

(100)

19. Experience in these field does not

yields growth

96

(48)

56

(28)

32

(16)

16

(8)

-

-

200

(100)

20. Sufficient Natural resources 125

(62.5)

43

(21.5)

28

(14)

4

(2)

-

-

200

(100)

Source:PrimaryData

Note : The figures in the brackets show percentage to total

SA – Strongly Agree, A – Agree, No – NO opinion, DA – Disagree,

SAD- Strongly Disagee

Table 32 exhibits the Prospects of retail business in Sivakasi Taluk. Retailers tell their

opinion about 20 statements of retail business in sivakasi like chance to earn more profit,

needs lesser investment, low competition in retail business, does not needs advanced

technology, better chance to growth and so on.

To rank the prospects of retail industry in sivakasi, the weighted arithmetic mean

method has been used. The result of ranking is given in Table 33

TABLE 33

WEIGHTED ARITHMETIC MEAN FOR THE RANK

S.No. Opinion SA A NO DA SDA Total Total Average Rank

1. Sivakasi is suitable

to retail business

660 224 24 8 0 200 916 4.58 4

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

20

2. Chance to earn more

profit

780 156 9 4 0 200 949 4.75 1

3. Needs lesser

investment

510 344 0 16 4 200 949 4.37 10

4. Low competition

inretail business

125 168 225 64 26 200 874 3.04 20

5. Does not need

advanced technology

670 208 12 20 0 200 608 4.55 7

6. Government support

to retail business is

enough

530 192 120 12 0 200 910 4.27 12

7 Financial assistance

from Institution is

enough

430 276 114 14 0 200 854 4.17 15

8 Availability of Suff-

icient labour force

610 272 30 0 0 200 834 4.56 6

9 chance to growth 660 232 18 8 0 200 912 4.59 3

10 Less political

influences

685 172 54 4 0 200 918 4.57 5

11 Low cost factors of

prodution

555 128 117 36 0 200 836 4.18 14

12 Lesser or no

formalities of

registration

345 356 96 14 0 200 811 4.06 17

13 No speculation affect

in retail business

480 108 126 70 0 200 784 3.92 18

14 Sufficient Transport

facilities

635 164 84 8 0 200 891 4.46 8

15 Better chance to

business expansion

540 252 54 22 0 200 868 4.34 11

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

21

16 Higher Quantum of

population

690 192 27 10 0 200 919 4.60 2

17 Other infrastructure 505 236 87 22 0 200 850 4.25 13

18 No need for any

specified knowledge

275 300 45 100 5 200 725 3.63 19

19 Expereince in these

field does not yields

growth

480 224 96 32 0 200 832 4.16 16

20 Sufficient Natural

resources

625 172 84 8 0 200 889 4.45 9

Source : Processed Data

It is noted that among the 20 statement, chance to earn more profit is most important

factors because retail business has a lot of chance to earn more profit. Retailer is the final

stage in the channel of distribution, retailers can satisfy the customer needs and wants, and

earn more profit in their retail business. A second important factor is Higher Quantum of

population.

Competition plays an important role in each and every business. In retail business

there should be shift competition. To overcome the competition the retailers can satisfy the

needs and wants of the customer.

KOLMOGROV – SMIRNOV ( K – S ) TEST

Kolmogrov – Smirnov ( KS) is a non – parametric test. It requires less assumption.

This test can be applied when the sample size is more than 40. This is used to find out

whether an empirical distribution agrees with an assumed theoretical one or not. There are

Twenty Statements and each statement has Prospectus of Retail business in Sivakasi. The

following formula is applied in this test.

D2 = O – E

D = refers to calculated value

O = refers to cumulative observed proportion

E = refers to cumulative expected proportion

ANALYTICAL FRAMEWORK

In Kolmogrov – Smirnov (KS) Test, the cumulative observed proportion is calculated

on the basis of observed number. In each case the observed properties are calculated by

dividing the respondents. For all gradations, the same method of calculation is followed. On

the basis of observed proportion cumulative proportion is calculated. Cumulative expected

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

22

proportion is calculated on the basis of expected proportion. Since there are five gradations,

each gradation (ie 0.20 ) is assigned as expected proportion on the basis of observed

proportion and the cumulative expected proportion is calculated.

For each gradation, the difference between cumulative observed proportion and

cumulative expected proportion is calculated. The largest difference will be taken as

calculated value.

The Table value at both 95 per cent and 99 per cent confidence level is 1.36/ √n, ie

1.36/ √200 = 0.096. If the calculated value is greater than the table value, the null hypothesis

is rejected otherwise accepted.

APPLICATION OF KOLMOGROV – SMIRNOV ( K – S ) TEST

In order to study the opinion of the retailers about the various prospects statements

regards with Retail Business, the Kolmogorov – Smirnov ( K-S ) Test has been used. For the

purpose of this study, the following Null hypothesis is framed.

There is no significant difference in the opinion of the Retailers about the statements

regard with prospects retail business in sivakasi

The result of Kolmogrov – Smirnov test is given in Table 34

TABLE 34

RESULT OF KOLMOGROV – SMIRNOV (K – S) TEST

S.No. Opinion Calculated

‘D’ Value Table Value Result

1. Sivakasi is suitable to retail

business

0.54 0.096 Significant

2. Chance to earn more profit o.58 0.096 Significant

3. Needs lesser investment 0.54 0.096 Significant

4. Low competition in retail business 0.11 0.096 Significant

5. Does not needs advanced

technology


6. Government support to retail

business is enough


7. Financial assistance from

Institution is enough


ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

23

8. Availability of sufficient labour

force


9. Better chance to growth 0.55 0.096 Significant

10. Less political influences 0.50 0.096 Significant

11. Low cost of factors of production 0.39 0.096 Significant

12. Lesser or No formalities of

Registration


13. No speculation affect in retail

business


14. Sufficient Transport facilities 0.44 0.096 Significant

15. Better chance to business

expansion


16. Higher Quantum of population 0.53 0.096 Significant

17. Other infrastructure 0.40 0.096 Significant

18. No need for any specified

knowledge


19. Experience in these field does not

yields growth


20. Sufficient Natural resources 0.44 0.096 Significant

Overall 0.01 0.096 Not Significant

The result of Kolmogrov – Smirnov (KS) test gives clear idea about the opinion of

retailers about the prospects of retail industry in sivakasi. According to KS – Test the

retailers have different opinion about the individual statement of prospects of retail industry

but in total all the retailers feel that the retail industry of sivakasi has good prospects.

Therefore it is concluded that there is significant difference between the opinions of retailers

about individual statement about prospects of retail industry and there is no significant

different between the opinions of retailers about prospects of retail business in sivakasi in

total.

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

24

FINDINGS OF THE STUDY

The findings of the study is summarized below

It is inferred that more number of retailers are male, lie under the age group of 35

years to 45 years, backward community, Hindu, married, undergraduate.

It is vivid that retailers with a monthly income of Rs 10,000 ( 33.50%) are found

more in the Sivakasi Taluk.

Most of the respondents are Grocessary shop retailers which occupy 22.50 per cent.

It is clear that most of the respondents are not having previous experience in the retail

business.

It is understood that majority of the respondents are supported by the family members.

It is known that most of the respondents have stated that they receive financial help

from family members.

It is inferred that majority of the respondents doing their forefathers business.

It is lucid that, the majority of respondents (60%) have taken the decision

independently.

Majority of the respondents (75%) have business unit at urban areas.

It enlightens the fact that the majority of the respondents (48%) located their shop in

residential area.

It is found that 55 per cent of the respondents are doing the business under sole trader

form

It is concluded that 29 per cent of the respondents are withstand in these field from 15

to 20 years.

It is inferred that most of the respondents (80%) have utilized their full capacity.

The lack of working capital is the cause for under utilization of resources.

It is realised that majority (86.50%) of the retailers procure the raw materials from

open market.

It is known from that most of the respondents (39%) have purchased products against

credit.

Most of the respondents (73%) have adequate marketing facilities.

It is inferred that most of the respondents (36%) are made credit sales to their

customer.

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

25

It is clear that most of the respondents (52.78%) having the problem of bad debts.

It is known that majority of the respondents (67.50% ) not advertise their product.

It is vivid that majority 47.50 per cent of respondents have used borrowed funds for

their business and 33.68 per cent of respondents have borrowed funds from their

relatives.

It is known that majority of the respondents are not availed government assistance and

44.44 per cent of the respondents get power concession from government.

There is no significant difference among the opinion of retailers about the problems of

retail business.

According to the Kolmogrov – Smirnov (K- S) Test, there is a significant difference

in the opinions of retailers about the individual 20 statements about prospects of retail

business.

There is no significant difference among the opinion of retailers about the prospects

of retail business in Sivakasi.

SUGGESTIONS OF THE STUDY

The following suggestions are offered to improve the retail business position in

Sivakasi.

The location of the stores should be convenient and easy to access. The distance that

the consumer must travel to shop is the basic criteria.

The goods should be properly packaged.

Certain specialized item which are used or consumed on special occasions or festivals

or local celebrations should be available in the shops.

Effective control system must be introduced for controlling purchases, storing and

inspection of goods, it is highly useful for maintaining quality of goods sold. The out

of date inventories are to be immediately identified and removed from the store.

Motivating the staffs for improving the performance of their work. The quality of

service is a key factor and winning a higher share of customer. Staff must be trained

and motivated to recognize their best customers and to offer them superior service.

The quality of management of the customer is becoming an increasingly important

source in improving the customer service. Education and training of staff needs to be

done to enhance service.

The frequent buyers should be maintained with the personalized report.

The promotional measures such as advertising in local television, banner etc. This

result in confidence and trust by customers on the store about the availability of the

specialized items or products. The amount of promotion done by a shop depends on a

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

26

number of factors such as store policy, how frequently they bring in new products and

new stocks conducting of promotional schemes, general awareness of the shop, the

market segment catered to and the budget available for promotion.

Technology and innovation will serve as the fuel in enabling the customer‟s shopping

experience. Hence new technology may be adopted in serving the customers.

The Government should reduce the Registration formalities and Regulation.

The customers expect best shopping experience so the management should take care

of environment. The key indictors such as product offering, physical characteristics of

the store, store personnel, location convince, prices, customer‟s services.

The retailer should effectively utilize the natural resources.

The retailers should clarify the customers doubt about the product and services and

then purchase the product.

The retailers should properly pay the loan and advances to the financial institutions or

government institutions they reduce the interest rates.

CONCLUSION

Today retailers must differentiate themselves by meeting the needs of their customers

better than the competitors. Retailers should prepare marketing plans that include decision on

target market, product assortment and procurement, services and stores atmosphere, price

promotion and proper placement of products inside the retail shops. There is a general

agreement that a basic retailing strategy for creating competitive advantage is the delivery of

high service quality. Therefore, by giving better service and product, definitely the retailers

can taste the success.

REFERENCES

BOOKS

Gandhi, J.C “Marketing Management”, Tata McGraw Hill Publishing, New Delhi,

Year 2001.

Kotler Philp., “Marketing Management”, Sultan Chand and Company Private

Limited, New Delhi, Twelth Edition, 2003.

Pillai., R.S.N and Bhagavathi, “Marketing Management”, Sultan and Chand and Sons,

New Delhi, Second Edition 1999.

Jain., J.N and Singh.,P.P, “Modern Retail Management”, Tata McGraw Hill

Publishing, New Delhi, Year 2006.

Agarwal.,B.L, “Basic Statistics”, Wiley Eastern Limited, New Delhi, Second

Edition,1996.

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

4

27

MAGAZINES

Anusingh Lather and TRipat Kaur, :It‟s all at the mall: Exploring Present Shopping

Experiences” Indian Journal of Marketing, volXXXVI, August 2006.

Dabholkar P.A Torpe and J.O. Rentz, 1996 “Ameasre of service quality for retail

stores: scale development and validation”, Journal Academy of marketing science, vol

24.

Gupta.C.P, and Mitali Chaturvedi, “Retailing: An Emerging Trend in India”, Indian

Journal of Marketing, June 2007.

Sudhakar, G.P., “Retailing in India – What‟s up”, Indian Journal of Marketing, vol15,

June 2005.

Vimal Sukumar, “Customer Satisfaction”, Indian Journal of Marketing, Vol 16,

November 2001.

Vijay Durga Prasad, “The spread of Organised Retaling in India – With a special

reference to Vijayawada City”, Indian Journal of Marketing, May 2007.

Divya. M and Chinnadorai,K.M, “Retailing – An Emerging Sector in India”, SMART

Journal of Business Management studies, vol 5, Jan- June 2009.

WEBSITES

www.retail industry.com.

www.supermarketsindia.com.

www.thehindubusinessline.com.

http://www.retail/

http://www.supermarketsindia.com/

http://www.thehindubusinessline.com/

problems and prospects of retail business – a study with reference to

Documents