Consumer Buying Behaviour in Retail Chains: Case Study of Big Bazaar

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DISSERTATION
[Your Universitys name]
[CONSUMER BUYING BEHAVIOUR IN

RETAIL CHAINS: CASE STUDY OF BIG BAZAAR]
[M.A. Advertising & Marketing]
[Your name] : [Your class] : [Your student number]

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EXECUTIVE SUMMARY:
The purpose of this research is to understand consumer-buying behavior in retail chains for Indian market. 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 concurrently submitted 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: MBA in Logistics and Supply Chain Management. Signed: Date (Candidate)
STATEMENT 2 This dissertation is the result of my own independent work and investigation, except where otherwise stated. Other sources are acknowledged by footnotes giving explicit references. A bibliography is appended. Signed: . (Candidate) Date: STATEMENT 3 I hereby give consent for my dissertation, if accepted for photocopying and for inter-library loan, and for 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 interlibrary loan after expiry of a bar on access approved by the University on the special recommendation of the institution. Signed: (Candidate) Date:
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ACKNOWLEDGEMENT
To be given by the student for departmental heads and professors who helped him to complete 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 well 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 and pop 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 and increasing 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 of purchase 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 notion of 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-BazaarRetail-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. Indian patrons 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 the retailing 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 various facts 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 m2. The retail 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-retailmanagement-in-the-growth-of-indian-economy/impact-of-retail-management-in-the-growth-ofindian-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 skyscraping 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=IsIndia-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 pricesensitive 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, lowmargin 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 horiz on 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 their existing 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://trainsrv.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 (homebased) resulted in the emergence of new retailing format electronic direct marketing.
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2. Theory of Natural Selection/Environmental Theory: Dreesman, (1968) was the first to apply Darwin theory of Natural Selection to the evolution of retail organizations from the general stores to the variety of retail outlets seen today. Many studies have been conducted regarding the same (Blizzard, 1976; Brown, 1987; Gist, 1968; Oren, 1989). It suggests that a process of natural selection operates in retail trade also. Adaptation to changes in the environment is the necessary condition for the survival of the retail formats. Some of the developments during the last few years are given below: Specially retail formats for certain product categories such as infant-wear and toy stores declined as discount stores and category killers gained more market share. Traditional food retailers in India are challenges by fast food joints as lifestyle is changing. Traditional book sellers have been challenged by category killers such as Barnes and Nobles and electronic book sellers such as Amazon.com. In India the organized retailing in books category is growing at a rate of more than 30% and traditional retailers may feel threatened. In fact, many store-based retailers are actually going for multiple channels to minimize the threat posed by internet-based retailers. In general, it can be said that retailers offering premium optimum values have best chances of survival in the retail environment. With demographic changes like shifting of population from central parts of the cities to suburban areas resulted in development of new shopping centers to meet the needs of the new residents, home improvement and home furnishing stores are performing well with boom in housing construction in India. A change is a pervasive factor in retail business. In order to develop successful strategies, it is necessary for retailers to understand the reasons behind the changes. Some changes are lifestyles, shopping patterns, and shorter product life cycles. The retail environment is so complex that many theories may be applied simultaneously in the same example. Segregation of consumer behavior studies may also explain the changing phenomenon.
3.2 KEY FEATURES OF BUYING BEHAVIOR OF INDIAN RETAIL CONSUMERS:

When everything revolves around the consumers, then the study of consumer behavior becomes imperative. It is never an easy task to generalize consumer behavior. According to Madaan, (2009), it varies across different product categories, channels and stores. The consumer behavior in retail chains has been discussed under the following subheadings:
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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 the basis 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 survival to 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 selfactualization 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 means more 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: 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 filtered before 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
i.
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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 of personal 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 whole point 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 in quantitative 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 kind of 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 (Schiffman and 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 of data 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.
5.1 Part A: Demographics (Age, Sex)/ Income

Q1. 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.
Age Range
14, 28% < 18 28, 56% 7, 14% 18 to 36 36 to 54 > 54
1, 2%
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Figure 15: The range of age for respondents at big bazar.
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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.
Genderwise Distribution of Population
Male 17 34%
Male
Female Female 33 66%
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
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Income Range of Respondents

25 22, 44% Income Range of Respondents
20
15 11, 22% 10 5 0, 0% 0 < 15000 between 15000 to between 30000 to between 45000 to 30000 45000 60000 > 60000 9, 18% 8, 16%
Figure 17: General income group classification of the respondents
The above graph indicates the maximum number of respondents falls from the income range of <30,000 Rs per month. This indicates towards lower and middle-income group representation. There can be many interpretations derived from the representation. The first interpretation is of the fact that the target consumers and their buying habits reflects big bazaar as a choice of middle income range persons. Again, this is cumulative to the results of question above where we find maximum respondents from young age group. The most important observation from the graph is of the fact that no high net worth individual was found for response. It means that high-income group individuals do not prefer the big bazaar.
Q5. From where do you prefer purchasing your monthly grocery? a. Local grocery shop b. Any retail outlet c. Any organized retail chain d. Big Bazar This question was asked to understand the loyalty of the customers. The customers are generally coming to big bazaar as a preferred choice and this is reflected in their response. Few others are the one who prefer organized retail for their purchase needs. Clearly big bazaar has established itself as a preferred brand. The other indication for this response is the growing choice of consumers to find an organized retail chain for the purchasing needs.
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Local Shop 3 6%
Purchase preference for grocery needs

Any retail outlet 8 16% Big Bazar 21 42% organized retail 18 36%
Local Shop Any retail outlet organized retail Big Bazar
Figure 18: Consumer buying preference for big bazar and organized retail
5.2 Consumer 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.
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Members living with respondents

20, 40%
5, 10%
Single Only 2 to 4 members
8, 16% 17, 34%
4 to six members More than 6 members
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.
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Purchase Habit of Individuals

13, 26% Purchase using list 7, 14% Bring list but also purchase extra Purchase imprompto 19, 38% 11, 22% random buying
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
Visit Frequency to Big Bazar

35 30 25 20 15 10 5 0 Less than a week Weekly Monthly More than a month Unplanned 4, 8% 3, 6% 4, 8% 7, 14% 32, 64%
Figure 21: Consumers visit preference 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 receive almost identical representation. Random purchase is also significant in Big Bazar.
Items purchase from Big Bazar

25
21, 42%
20 15 10 5 0 Entertainment Grocery Fruits and vegetables Garments and footwear Random purchase Others 9, 18% 6, 12% 3, 6% 7, 14% 4, 8%
Figure 22: Nature of general purchase as identified by the respondents.
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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
Big Bazar Preference Reason

16 14 12 10 8 6 4 9, 18% 4, 8% 6, 12% 7, 14%
3, 6%
21, 42%
2
0 Proximity Outing Family Needs Both Outing and Needs Discounts 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.
5.3 Influence 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 family c. The purchase depends upon the collective decision by family
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d. I consider family and friend views for any buying decision
Purchase decision influence of family
6, 12%
11, 22% Sole decision maker
15, 30% 18, 36%
Partially influenced by family
Collective family decision

Consider only family views
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 most decisions. 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 influential and it can affect consumer buying behavior in significant amount.
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Promotions and Discount Effects

No effect 12 24%
Buy more than budget 14 28%
Buy more than budget Buy promotional item instead of preferred brand Impulsive buying No effect
Impulsive buying 7 14%
Buy promotional item instead of preferred brand 17 34%
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
Influence of Big Bazar as brand

18 17, 34% 15, 30% 12, 24%
16
14 12 10 8 6 4 2 0
2, 4%
4, 8%
One stop shop
Variety
Low Ease in shopping Brand Name and price, discount trust
Figure 26: How big bazaar affect purchase decision and attract 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
Main problems at organised retailers

18 16, 32%
16
14 12 10 8 6 4 2 0 Long queues No credit facility Incomplete range Sub standard products Assistance 6, 12% 6, 12% 12, 24% 10, 20%
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
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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.
5.4 Conclusion:
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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Chapter 7: Conclusion and Recommendation

The focus of discussion is to understanding the retailing concept and increase of organized retail in Indian markets. The facts were established by example case study of big bazaar to establish factors influencing importance of retailing in India. In detail, analysis of consumer buying behavior is established by analysis previous work and literatures of writers already worked in similar field. Literature review establish various models of factors related to buying in retail segments. Big bazaar is taken as an example case study for the same to study about buying patterns and consumer behavior and to study shopping experiences in malls and hyper cities. Case study of big bazaar is taken to establish the pattern of buying of consumers in retail stores. It is fruitful to provide general consumer patterns and give insight of retail consumer behavior and preferences. This chapter discusses the discussion and focus on all these scenarios 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. Shopping experience is enhanced at such organized retail stores when compared to unorganized retail shops. This is the reason of increase in customer base for organized retailers. Customer care is thus utmost important for such scenarios. This should be improved and taken care by the management. This study is although focused on big bazaar but it provides general overview of organized retail in Indian scenario. Big Bazaar is hypermarket multispecialty store where consumers are attracted with one stop shopping experience at discounted rates. Although the competition between the organized retail chains is increasing but still the main competition is with local retail stores. There are certain limitations of study such as limitation of approach, time and resource limitation etc that limits the validity in results. This study only represents a small sample from a large population. It might not be true reflection of real scenario, yet it gives a close approximation. Still this study is very useful as guidance for other researchers. Some respondents might not focus on proving true response to questions. This can be taken as practical study for approaching similar topics.
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Chapter 8: References
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