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Patel Post Graduate Institute of Business Management



“Study On Consumer Behavior At Organized & Unorganized Retail

Outlets In VallabhVidyanagar “

Submitted By: Subject: Research Methodology

Karan Shah (17017)
PalakMakadia (17021)
RiyaRegu (17030)
ShubhamPanchal (17038)

Submitted To:Dr. Darshana Dave


We would like to express a special thanks of gratitude to Darshana Ma’am as well as all the
faculties of GHPIBM who gave us the golden opportunity to do this wonderful Research project,
which helped us in doing a lot of Research and we came to know about so many new things, We
are really thankful to them. We are also thankful to our friends and peers at GHPIBM for their
valuable suggestions, feedback and support.

Karan Shah (17017)

PalakMakadia (17021)

RiyaRegu (17030)

ShubhamPanchal (17038)

Semester – 2



This research paper based on respondents who buy groceries at organized and unorganized retail
outlets. Through this study we have tried to find out consumer behavior of respondents when
they shop through organized and unorganized retail outlets. As a part of consumer behavior, their
perceptions, motivation levels and demographic factors were studied. We have also tried to study
the reasons for preference of retail outlets and the attributes that consumers look for when they
visit retail outlets.
Table Of Contents
List Of Tables

The word “Retail” originates From a French – Italian word. Retailer – someone who cuts-off or
sheds a small piece from something. Retailing is the set of activities that markets products or
services to final consumers for their own personal or household use. It does this by organizing
their availability on a relatively large scale and supplying them to consumers on a relatively
small scale. Retailer is a person or agent or agency or company or organization who is
instrumental in reaching the goods or Merchandise or Services to the End User or ultimate
consumer. Retailing involves all activities incidental to selling to ultimate consumer for their
personnel family and household use. It does this by organizing their availability on a relatively
large scale and supplying them to customers on a relatively small scale. Retailer is any
person/organization instrumental in reaching the goods or merchandise or services to the end
users. Retailer is a must and cannot be eliminated. The retail industry is divided into organized
and unorganized sectors.

Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who
are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets
and retail chains, and also the privately owned large retail businesses.

Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing,
for example, the local kirana shops, owner manned general stores, paan/beedi shops,
convenience stores, hand cart and pavement vendors, etc. Modern retailing has entered India in
form of malls and huge complexes offering shopping, entertainment, leisureto the consumer as
the retailers experiment with a variety of formats, from discount stores to supermarkets to
hypermarkets to specialty chains. However, kiranas still continue to score over modern formats
mostly due to the convenience factor i.e. near to their house.

 To present a brief profile of the consumers in VallabhVidyanagar.

 To study various attributes of organized and unorganized retail outlets in

VallabhVidyanagar that consumers prefer.

 To study the preference of respondents for organized and unorganized retail outlets in
VallabhVidyanagarand the reasons for their preference.

Stedman (1956) had described the changing shopping behavior of consumers with the shopping
centers as a new retail format. Although the consumers needed to travel more distance, as these
stores were located at the outskirts, still the ‘one-stop shop’ feature introduced by them lured
people to visit and shop there.

Lumpkin et al. (1985) found that as compared to young shoppers, elderly shoppers were less
price-conscious and proximity of residence to store was not an important factor for them. They
considered shopping as recreational activity and thus chose a store that is perceived to be high on
“entertainment” value.

Zeithaml (1985) conducted a field study to examine the effects of five demographic variables
(gender, female working status, age, income, marital status) on supermarket shopping variables
(e.g. shopping time, number of supermarkets visited weekly, amount of money spent)

SaravanaBava cooperative supermarket, Cuddalore was enjoying favourable images of

consumers in the attributes such as equality of price, behavior of sales persons, moving space,
location, correctness of weight, packaging of goods, number of sales persons and convenient
shopping hours. At the same time, the image is weak in the attributes such as quality of goods,
availability of range of products, variety of goods, acceptance of returns, credit facility, and door
delivery and in sales promotional measures.

Dabholkar, Thorpe and Rentz (1996) mentioned that in trade the service quality can be
evaluated with the help of regular scale dimensions. There are five quality measurement used to
measure the service quality. It includes: Personal interaction, Vendors politics, Problem solving
capacity, Physical aspects and Reliability
Farida Khan et al 2015[3],conduct research study on analysis of consumer behavior towards
organized and unorganized retailing in Delhi region of NCR. This paper deals with the key
determinants that influences consumer towards retail outlet choice. Findings of the study show
that, attributes related to product, price, promotion, process has great impact on consumer

PandyaAmit R et al 2012[7], conduct a research study on consumer behaviour of organized and

unorganized retail outlets in vadodara city, in this research study authors has covered those
customer who directly purchased product from through organized and unorganized retail outlets.

Sharma M. (2012) defines consumer preferences as the subjective (individual) tastes, as

measured by utility, of various bundles of goods. They permit the consumer to rank these
bundles of goods according to the levels of utility they give the consumer. Note that preferences
are independent of income and prices. Ability to purchase goods does not determine a
consumer's likes or dislikes. This is used primarily to mean an option that has the greatest
anticipated value among a number of options.

Mishra (2007) highlighted that the rapid growth of retailing in recent years has necessitated the
upcoming many new firms to benchmark. Retail firms are concerned about the available
resources and their optimum utilization with respect to consumers’ need and preference.

Jack and Rose, (2000) opined that it would be difficult and almost impossible to create
quantitative variables to describe the overall appearances of the main characters combining
varying views (e.g., price, taste, quality, hygiene etc.) as well as the dynamic design, colours, and
sounds of the machine in that vending solution, which may have a significant impact on
consumers' preferences.
Sinha P.K, Banerjee A and Uniyal D.P. (2002) studied store choice behaviour of shoppers in
the context of the changing retailing environment. They have tried to identify major drivers
behind choice of stores for various shopping needs as exhibited by a typical Indian consumer.
Their study revealed that convenience and merchandise are the primary reasons behind choosing
a store.

Pan and Zinkhan (2006) studied the consumer store patronage and store choice in the retailing
literature. These studies suggest that several attributes affect consumer’s preferences and
expectations of retail stores, such assortment, service, product quality, store atmosphere, store
location, price level, checkout speed, hours of operation, friendliness of salespeople, and parking
facilities. When choice is unconstrained consumers will enact their purchase preferences and buy
only their preferred products.

Bearden (1977) distinguished seven attributes as potentially significant for store patronage:
price, quality of merchandise, assortment, atmosphere, location, parking facilities and friendly

Varun Jain (2010) concluded that the shoppers in India prefer the local kirana stores over malls.
The shoppers love to hangout and shop from their local traditional stores because of the
familiarity with ambiance, ease of access, emotional attachment, early opening and late closing
times etc., which suits the local residents.

Bhatnagar, (2002) inferred that, while specialized and traditional stores are preferred for fresh
products, hypermarkets are preferred for shopping in general, and also for frozen food, groceries
and beverages. The purchase of perishables in hypermarkets is reduced.

Singh and Powell (2002) inferred that grocery shoppers consider quality to be most important,
followed by price, locality, range of products and parking.
Hutcheson and Moutinho (1998) found that the quality of fresh and packaged produce, low
prices, length of queues, friendliness of staff and convenient location were all considered
important when choosing a preferred supermarket and that quality of staff and product and prices
heavily influenced levels of satisfaction with store choice.

(Sullivan and Savitt, 1997) ‘‘Credit’’ is a predictor of grocery shopping expenditures spent out
of the community and consumers spending a medium proportion of their grocery expenditures
out of a locality had the highest overall shopping expenditures in all categories.

(McDonald, 1991) found quality, assortment, store location, price and product variety as the
most important store attributes influencing satisfaction.

Yang (2006) concluded that spatial separation distance best explained respondents’ shopping
destination choice behavior, followed by store selection criteria.

Bellenger et al. (1977) inferred that some consumers placed the greatest value on convenience
and economic attributes including convenience to home, accessibility, and the presence of
services such as banks and restaurants.

Arnold (1983) inferred that, in 14 different retail food store studies, respondents were
asked to please tell me all things considered, the single most important reason you shop at the
store where you shop most often. The important store characteristicswere found to be locational
convenience, low prices, assortment/variety, courteous helpful staff, high quality merchandise,
quality of fresh food, fast checkout/fast service, cleanliness, and shopping environment.
Locational convenience and low prices were clearly more important attributes than the other

Primary data: - The method of data collection wasdone by the way of survey. The primary data
will becollected in the form of structured questionnaires.

Secondary data:-The secondary data collected in theform different journals, book, websites, etc.


1. Sample size & Simple unit: 100 respondents from VallabhVidyanagar who shop in
organized and unorganized retail outlets in Vadodara.

2. Sample selection procedure: Stratified sampling technique was used to select samples.
For this, strata as selected on the basis of occupation.

We prepared a questionnaire through Google form and spread it among our contacts in
VallabhVidhyanagar, We also personally visited the organized and unorganized retails in
VallabhVidhyanagar for the research and data collection.


 Overall perception regarding preference for Organized and Unorganized retail outlets and
background characteristics of respondents like Gender, Age, Marital Status, Family
Structure and Family Size, Education, Occupation and Income Category are independent.

 Average amount spent by respondents per month in organized and unorganized retail
outlets are equal.

 Average score by assigned respondents to various attributes for organized and

unorganized retail outlets are alike.