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8/14/2019 Customer Shopping Behavior
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Unorganized Retail vs. Organized RetailSector in Mumbai, India
CUSTOMER SHOPPINGBEHAVIOR
Pankil Chugh 204
Jai Awatramani 402Himmat Sandhu 416Shikhar Tyagi 423Aliasgar Navagharwala 425
MBA(Tech.) Class of 2004-09, NMIMS, Mumbai,
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ChronologyIndian Retail ScenarioObjective of the survey
Questionnaire
Findings
Recommendations and learnings
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Indian Retail Scenario12 million retailersDominated by dukandars
Total retail market size in India in 2008:USD 353 bn
Annual growth rate (2008): 12%
Present share of organized sector: 7%
Expected investment in modern retailing:
USD 25-30 bnin next 4 years
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Organized Sector in IndiaModern formatChain stores
TypesSpecialty stores
Discount stores
Hypermarkets
Supermarkets
Convenience stores
Department stores
Malls
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Classification of IndianCustomers
Source: Future Group Research, Published in book It happened in India by
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Emerging trends in consumersincome and consumption pattern
Growing prosperity
Increase in sizable disposable incomePlace is no more importantHigher proportionate rural expenditureYoung population with higher purchasing
power
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NeedRecognition
InformationSearch
Evaluation
Choice
STAGES SELECTING A SELECTING
THE BUYING
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Evaluation of AlternativesMultiattribute Attitude ModelCustomers see a retailer or a product as a collection of
attributes or characteristics
Designed to predict a customers evaluation of aproduct or retailer based on:
Performance on several attributes Importance of those attributes to the customers
Attributes and importance weights are chosen as criteria
Alternatives compared against the criteria
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Importance Weights
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Research Design andMethodoloExploratory research conducted in MumbaiFocuses on customer shopping behavior in
Indian scenario among different formats, i.e.organized and unorganized
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QUESTIONNAIRE
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Objective behind theuestionnaire
To identify the various factors that affect thechoice of format viz. Organized/ UnorganizedRetail.
The perceptions and the attitude towards
both the formats.The type of goods customers prefer to
purchase from each format.
Findings that can help the organized and the
unorganized retail gain its key strength andweaknesses.
Sample Size: 40
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Customer Attributes affecting choiceof format
SEX
AgeGroup
Numberof
Members
in Family
Occupation
Location
Organized-
Unorganized Retail
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Other factors checked
We believe this is a big factor that affects the usage offormats, in urban areas, SEZs the out of city crowd iscompletely unaware of the local market, the local
language(Chennai) and the local behavior(generalbargaining rates), thus they may choose to shop from
Some Customer would shop some particular items fromOrganized Retail while some items from unorganized retail
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Which are the possible shops?
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What do you shop, how often andfrom where?
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What do you shop, how often andfrom where?
Items which are purchased on a daily basiswill be preferred on basis of closeness to thestore(organized/unorganized)
For items which customer prefer to purchase
once in a week, have a higher probability ingoing in for organized retail.
What is the frequency of purchase eatableitems of customers going to each of the
formats as they contribute highest to thesales
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Reasons for preference to each of theformats: May be its a Customer
11.) Why do you prefer to go for Organized Retail formats?
12.) Why do you prefer to go for Organized Retail formats?
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Comparing Organized/UnorganizedRetailing on various attributes that decide
13.) Kindly rate the below of an organized retail andunorganized retail based upon your preference
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Any other comments from thecustomer and
Comments given bycustomers bring points
which are nevercovered within the
Lets us know if customer isdissatisfied with the current
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Organized Retail
An Analysis of Consumer Preferences
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A Few Big Players are Dominating theMarket
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Types of Purchases Made inOrganized Retail
F
F
FD Dail Weekl Fortnigh Monthly of
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Top 10 Reasons Why ConsumersPrefer Organized Retail
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Consumer Rating on VariousCriteria
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Customers Want FurtherImprovement
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To Sum it Up
Consumers prefer organized retail outlets for
FMCG products that are bought in largequantities and for a larger duration of time.They also perceive it as a family outing andare drawn towards it due to its convenience,variety and special offers.
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Unorganized Retail
An Analysis of Consumer Preferences
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What Do Consumers Buy fromUnorganized Retail
F
F
FD Dail Weekl Fortnigh Monthly of
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Top 10 Reasons Why Customers PreferUnorganized Retail
C R ti f V i
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Consumer Ratings for VariousCriteria
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Aspects That Put Consumers off
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In a Nutshell
Consumers prefer unorganized retail outletsfor items that have low shelf life and are
consumed on a daily basis (such asvegetables). Logistical convenience and asense of personalization are key driversfor consumers to continue shopping at
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Comparison
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Organized Vs Unorganized
Organized Retail
Unorganized
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Organized Vs UnorganizedOrganized Retail
Unorganized
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RECOMMENDATIONS
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Unorganized Retail
Needs to be clean and a bit organizedRequires Planning
Increase the number of brands
Staff needs to be trained
Good Quality
Replenishment of stock
Warranty scheme
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Organized Retail
Need more Fresh productsHome delivery
Quality can be improved - freshness
Online shoppingRequire more counters on weekends
Tendency to shop for unnecessary thing just because youlike the offer.
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LEARNING
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Consumer Behavior
Attitude development and changeIntention to buy
Experiential involvementEmotional response
Store choice v/s Brand ChoiceInformationPrint Ads
Friends
H d h il
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How does the retail consumerthink?