Consumer Behavior Towards Shopping Mall

Presented ToPro. Gaurav Tandon

Sr. Professor at SKIPS

Presented ByPankaj Bajaj

Sem.-4

Overview of Indian Retail Industry

Indian retail industry is a sun rising market for indian as well as foreign companies also.

India is the 5th largest retail market of the world. Size of 16 trillion US Dollar. Expected Grow in next year 660 Billion US Dollar. Fastest growing market with 1.2 billion people. Up to 2017 it will grow more then three time of the

present level.

Type of Retail Sectors in India In india two types of retail sectors are available.

Organize Retail SectorTrading by license holder Registered for sales taxQuality goods are availableThey have supply chainCredit facility not provided by themAll thing available at one place

Un-organize Retail SectorLow cost retailingNot quality focused Sale local made thingsKnown customer face by faceThey give credit facilityThose customer with they have good relation also provide home deliveryWe can see that on local market, in housing society corner.

Organize v/s Un-organize Indian retail industry is

running by Un-organized sectored.

Organized retail sectored have only 5% market share.

Organized retail sector is growing at 35% current annual growth rate.

Market Share

Un-organized retail sectorOrganized retail sector

CAGR

Un-organized retail sectorOrganized retail sector

Evaluation of Indian RetailHistoric/Rural Reach

Traditional/Pervasive Reach

Government Support

Modern Formats/ International

(1) Weekly Market (2)Village Fairs (3) Melas

(1) Convenience Stores (2) Mom & Pop Karana’s

(1) PDS Outlets (2) Khadi Stores (3) Cooperatives

(1) EBOs (2) Super Markets (3) Department Stores (4) Shopping Malls

Source of Entertainment

Neighbourhood Stores

Availability/Low Cost/ Distributions

Shopping/Experience/Efficiency

FDI in INDIA1991 Liberalization: - indian economy opened FDI up to 51% allowed

under the automatic route of select priority sectors. 1997 FDI up to allow 100% allowed under the automatic route in cash &

carry (wholesale). 2006 FDI up to aloe 51% with prior government approval in single brand

retail. 2008 Government mulled over the idea of allowing 100% FDI in single

brand retail and 50% in multi brand. 2010 Government proposing FDI in multi brand retailing.

Entrance Rout’s used by Foreign Players

Strategic License Agreement Franchise Route Cash & Carry Wholesale Banking Manufacturing and wholly Owned Subsidiaries Distribution Joint Venture

Potential Benefit of FDI Potential Cost of FDI

Displacement of Un-organized retail ownerIncrease in real estate costCompetition for the domestic marketers

Infusion of capitalTechnology TransferHigher Consumer Well BellingInflation ControlIncrease in EmploymentGenerate Govt. Revenue

Industry Speak about FDI “Opening up foreign investment will bring in funds require

for expansion of the nascent modern retail sector in India. The market opportunity is large and we do not see much impact at a national level from new players. We support opening up of the sector to FDI. Most of the opposition is related to food sector, where stakeholders are not sure of its impact on suppliers and on agriculture. Specifically for the food sector the government may adopt a calibrated approach of popping it up to FDI”

Mr. Kishore Biyani, Managing Director, Pantaloon Retail

SWOT Analysis of Indian Retail Industry

Major Contribution in GDP.High Growth Rate.High PotentialHigh Employment Generator

Lack of CompetitorsHighly UnorganizedLow ProductivityShortage of talented professional.

Strength Weekness

SWOT Analysis of Indian Retail Industry

Create Transparency in SystemQuality ControlControl over WastageSustainable Development

Big Players Can Knock Out CompetitionIndia doesn’t need Foreign Retailers The Govt. Hasn’t able to Build Consensus

Opportunities Threats

Key Terms Consumer Behavior:- The study of individuals, groups, or

organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs; and the impacts that these processes have on the consumer and society.

Retail:- According to Philip Kotler retail includes all the activities involved in selling goods or service directly to the final consumer for personal, non business use.

Key Terms Service:- Philip Kotler: - a service is an act of performance

that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.

Shopping Mall:- A shopping centre is a group of retail and other commercial establishments that is planned, developed, owned and managed as a single property, typically with on-site parking provided. The centre’s size and orientation are generally determined by the market characteristics of the trade area served by the centre.

Research methodology Objectives of the study: To explore the factors which affect

the consumer behaviour towards shopping malls.

Methodology

Research type: - The accepted research design for this study is Exploratory Research

Data collection: - the research based on primary data collection. The data collection tool to be used is questionnaire.

Research methodology Sampling technique: - sample technique is random sample

technique. The data collection would be in the four major malls of Ahmedabad namely Iscone Mall (S.G.highway), Himalaya Mall (Gurukul), Alpha one Mall (Vastrapur), and Kalasager Mall (Sattadhar Circle). All the four malls attract huge number of consumers. The survey instrument used is structured questionnaire. Samples are taken randomly from of mall shoppers from each of these malls.

Sample Size: - Total Sample Size of 200. We would be analyzing 50 samples from each of the mall.

Research methodology Population Framework: - The study will be conducted in

Ahmedabad, which is the largest city of Gujarat.

Data analysis: - the tools are used for the data analysis is Exploratory Factor Analysis, using IBM SPSS 19.

Limitation of the study: - The study would be conducted in the geographic boundary of the city of Ahmedabad.

Data Analysis

Value of KMO is greater than 0.5 but my KMO statistics is 0.895 so I can indicate that factor analysis use for the given set of the data. Bartlett test of sphericity testing for the significance of the correlation matrix of the variables indicates that the correlation coefficient matrix is significant as indicate by the P value corresponding to the chi square statistic. The P value is 0.000 which is less than 0.05 the assumed level of significance indicating the rejection of the hypothesis that the correlation matrix of the variables is insignificant. Sample size of 200 is more than 10 times the number of variables (19).

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

.895

Bartlett's Test of Sphericity

Approx. Chi-Square 1014.911 df 171 Sig. .000

Four Factors Identify from 19 Variables

From 19 Variables This 4 Factors are identify and 3 factors are fail.

(1 Factor) Location of the mall, Operating time, Parking Facility, Cleanness of the mall.

(2 Factor) Quality of the products, Variety of the shops.

(3 Factor) Volume of the product, Price for the product, Promotion offers, Staff Helpfulness, Service Offered.

(4 Factor) Product Arrangement, Facility Providing by the Mall, Availability of the Product.

RESULT OF THE RESEARCH As per above slide we saw that four factor identify

from 19 variables.

From those factors Factor 1 play important role in affect the consumer behavior.

This Factor affect the consumer behavior up to 63% so all shopping mall owners should have to focus on this four variables.

Thank

You