Research Paper
Research Paper
Abstract
The retail store is the place where customers take a decision on the purchase of the products
offered by the retailer. The store also influences the perceptions that customers form in their
minds about the store, the products, services and staff. From the management’s point of view
operations of the store are a major element of the cost. As a consequence, the store itself
becomes a critical asset of the retail business and it is imperative, that the operations are
managed well to achieve and sustain customer satisfaction and be cost effective. Managing
store operations for a retail business of any size or complexity, from the neighbourood grocer
to the national retail chain, is a challenging task. It requires integration among various
functions within the store. When all the functions are performed in an integrated manner, the
store operations run smoothly. In case of staple products or food & grocery products, the store
attributes like cleanliness, quality, freshness, availability, assortments, store layout, parking
facility, information sources (inside the store), service people etc plays a large influencing
factors on customers to decide about what to pick from the shelves.
Introduction:
Considerable research has been done on people’s attitudes toward shopping. Such attitudes
have a big impact on the ways in which people act in a retail setting. Retailers must strive to
turn around some negative perceptions that now exist. Shopping enjoyment: In general,
people do not enjoy shopping as much as in the past. So, what does foster a pleasurable
shopping experience – a challenge that retailers must address. Many shoppers enjoy bargain
hunting, recreational browsing, being pampered by sales people and the opportunity to get out
of the house or office. Attitudes towards Shopping time: Retail shopping is often viewed as a
chore: “Consumers now attempt to limit the time they spend shopping. Time-pressed by family
and work responsibilities, they spend fewer hours cruising the mall in search of the perfect
item, and look to get what they need as quickly as possible. This trend has been dubbed
‘precision shopping’. The upside of precision shopping is that consumers spend more money
each time they visit a store.
There has been a major change in attitudes toward spending, value, and shopping with
established retailers. The same shopper who buys commodity goods at one store may
purchase expensive product at other store. This shift does not appear to be transitory; but
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rather seems to define a more enduring pattern of behavior. In addition some customers seem
to be tired of the big mall, with their close-in, windowless feel and identical cast of retailers and
food court vendors. Why people buy or do not buy on a shopping trip? It is critical for retailers
to determine why shoppers leave without making a purchase. Is it prices? A rude salesperson?
Not accepting the customer’s credit card? Not having an item in stock? Or some other factor?
Consumer patronage differs sharply by the type of retailer. Thus, it is vital for firms to
recognize the venues where consumers are most likely to shop and plan accordingly. Many
consumers do cross-shopping whereby they shop for a product category at more than one
retail format during the year of visit multiple retailers on one shopping trip. The first scenario
occurs because these consumers feel comfortable shopping at different format during the year,
their goals vary by occasion they shop where ever sales are offered, and they have a favorite
format for themselves and another one for other household members. The marketer’s dilemma
is that if he pitches high, creating high expectations, there would be likelihood that they may not meet
them, and leave the customer unhappy. However, if he pitches too low, the customer may not try his
service al all as he many not get attracted enough to it. There is a fine balance between hype and
substance that the service provider should maintain while performing his marketing effort. As quality is
a relative concept, a retailer may not always understand what features connote high quality to
customers. The firm’s lack of understanding may affect quality perceptions of customers. Delivery gaps
will have an impact on the evaluation of service quality. If there is no gap it means consumer
expectation.
Most of the customers believe that many retailers don’t know how their customers prefer their
shopping experience and compete by doing what their competitors do. But that doesn’t work.
Customer insight will allow a retailer not only to survive but to thrive against even the toughest
competition. Visiting multiple outlets on one trip occurs because consumers want to save
travel time and shopping time.
Objectives:
1) To understand the importance on store attributes and related operations
2) To identify the influencing attributes on consumer decision making at store level towards
food & grocery products
Research Methodology:
Random sampling through the questionnaire. Respondents are the customers visiting the retail stores.
Sample size of respondents: 300, in selected cities of Telangana and AP state randomly.
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The present table shows the detailed break up of sample respondents from select cities of
Andhra Pradesh.
Table No.1: City wise sample respondents
[Link]. Cities Frequency Percent
1 Hyderabad 50 16.7
2 Warangal 50 16.7
3 Visakhapatnam 50 16.7
4 Vijayawada 50 16.7
5 Tirupati 50 16.7
6 Kurnool 50 16.7
Total 300 100.0%
Source: Field Survey
From the table1, it is clear that, equal proportion of sample respondents, i.e., 16.7% of
them were selected from each city. Further, each city comprise of 50 sample respondents.
While analyzing the respondents over residence basis-Urban and Rural, it is analyzed
that out of the 300 respondents, 197 respondents(65.7%) respondents belongs to urban area
and remaining 103(34.3%) customers n the rural area.
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Table No.3 shows the field survey results with reference to the customers’
perception on purchasing the goods during their visit to retail outlets. From the results, it is
clearly observed that, from Reliance, majority of the sample respondents, i.e., 77.3% of them
have opined ‘yes’ which indicates that they purchase goods during their visit. 72.6% of the
customers from More and 80.3% of the customers from Spencer’s’ also opined that they will
purchase the goods during their visit to the store.
Chi-square = 5.02
degrees of freedom = 2
probability = 0.081, tabular value = 5.99
Chi-square test is applied in order to analyze the significant difference in the opinion of the
customers of three retail outlets on visiting retail outlets. The expected observations and chi-
square value is obtained and shown in the above table. Chi-square calculated value from the
test result is 5.02 at 2 degrees of freedom and 5% level of significance and the calculated value
is less than the tabular value (5.99 ), hence, null hypothesis is accepted. Therefore, it is to
conclude that, there is no significant difference in the perceptions of the customers with
reference to visiting retail outlet for purchase of goods.
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CUSTOMERS PERCEPTION ON ITEM THEY PURCHASE USUALLY WHEN THE SHOP IN RETAIL
STORE
Table No.4: Customers’ perception on item they shop in the retail store
Packed /
Name of Electrical/
Grocery Frozen Gift
[Link] the Cosmetics Electronic Crockery Others Total
products food item
Retailer goods
items
171 47 40 11 9 14 8 300
1 Reliance
(57%) (15.6%) (13.3%) (3.6%) (3%) (4..6%) (2.6%) (100%)
159 33 38 29 18 9 14 300
2 Spencer’s
(53%) (11%) (12.7%) (9.7%) (6%) (3%) (14.6%) (100%)
167 44 52 15 7 5 10 300
3 More
(55.6%) (14.7%) (17.3%) (5%) (2.3%) (1.6%) (3.3%) (100%)
Source: Field Survey
From the field survey, it is clear that, majority of the sample respondents from
Reliance have opined that, they purchase Grocery product when shop at reliance outlet. From
Spencer’s and More retail, it is observed that, majority of the sample respondents have opined
‘grocery products’ as the item they purchase More. From the result, it is observed that
“packed/frozen food items’ are the second major items they prefer to purchase at above retail
stores. Chi-square test is applied to analyze the association between customers of three select
retail stores and their opinion on the type of item they purchase during their visit to retail
outlet.
Chi-square = 8.88
degrees of freedom = 12
probability = 0.918
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The table results shows that, majority of the sample respondents of Reliance have
opined Neutral(139) which indicates they have neutral opinion on cleanliness of the retail
outlet. From Spencer’s retail and More retail, majority of the sample respondents have opined
‘satisfactory’ which indicates they were satisfied with the cleanliness of the retail outlets. Chi-
square test is applied to analyze whether there is a significant difference in the perceptions of
the customers of three select retail outlets with regard to cleanliness in the retail outlet. Test
results are specified below.
Table No.7: Chi-square test results
Chi-square = 3.61
degrees of freedom = 8
probability = 0.891, tabular value = 15.507
From the comparison of test result, it is clear that, the tabular value of Chi-square is
15.507 which is higher than the calculated value, i.e., 3.61, hence null hypothesis is accepted,
therefore, it is to conclude that, there is no significant difference in the perceptions of the
customers of three select retail outlets with regard to cleanliness in the retail outlet.
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The above table shows that, majority of the sample respondents of Reliance, Spencer’s
retail and More retail have opined Satisfactory which indicates they have satisfaction on layout
of the retail outlet. From, More significant number of the sample respondents have opined
‘extremely dissatisfactory’ which indicates they were not at all convinced with the layout out of
the stores. Chi-square test is applied to analyze whether there is a significant difference in the
perceptions of the customers of three select retail outlets with regard to layout in the retail
outlet.
Table No.9: Chi-square test results
Chi-square = 3.79
degrees of freedom = 8
probability = 0.875, tabular value = 15.507
From the table, it is clear that, the calculated value is 3.79 which is less than the
tabular value, i.e., 15.507 at 5% level of significance. Hence, null hypothesis is accepted.
Therefore, it is to conclude that, there is no significant difference in the perceptions of the
customers of three select retail outlets with regard to layout in the retail outlet.
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Field survey result clearly show that, majority of the sample respondents of
Reliance have opined Satisfactory which indicates they have satisfaction on catalogue of the
retail outlet. From Spencer’s retail and More retail, majority of the sample respondents have
opined ‘satisfactory’ which indicates they were satisfied with the catalogue of the retail outlets.
Chi-square test classification is applied to analyze whether there is a significant difference in the
perceptions of the customers of three select retail outlets with regard to catalogues in the retail
outlet. Test results are specified below.
Table No.11: Chi-square test results
Chi-square = 2.70
degrees of freedom = 8
probability = 0.952, tabular value = 15.507
From the test result, it is to interpret that, the calculated value is less than the
tabular value, hence null hypothesis is accepted. Hence, there is a no significant difference in
the perceptions of the customers of three select retail outlets with regard to catalogue in the
retail outlet.
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Field survey result clearly shows that, majority of the sample respondents of
Reliance have opined Satisfactory which indicates they have satisfaction on the parking facility
of the retail outlet. From Spencer’s retail and More retail, majority of the sample respondents
have opined ‘satisfactory’ which indicates they were satisfied with the parking facility of the
retail outlets. Chi- square test classification is applied to analyze whether there is a significant
difference in the perceptions of the customers of three select retail outlets with regard to
parking facility in the retail outlet. Test results are specified below.
Table No.13: Chi-square test results
Chi-square = 1.36
degrees of freedom = 8
probability = 0.995, tabular value = 15.507
From the comparison, it is clear that, the calculated value of Chi-square is less than the
tabular value, hence null hypothesis is accepted. Hence, it concludes that, there is no
significant difference in the perceptions of the customers of three select retail outlets with
regard to parking facility in outlet.
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Retail houses have trolleys & baskets facility for moving goods
[Link]. Name of Total
Extremely Extremely
the Satisfactory Neutral Dissatisfactory
Satisfactory dissatisfactory
Retailer
1 Reliance 27(9%) 45(15%) 85(28.3%) 74(24.6%) 69(23%) 300(100%)
Field survey result clearly shows that, majority of the sample respondents of
Reliance have opined neutral which indicates they have dissatisfaction on the trolleys & baskets
facility of the retail outlet. From Spencer’s retail and More retail, majority of the sample
respondents have opined ‘Dissatisfactory’ which indicates they were not satisfied with the
trolley facility of the retail outlets. Chi- square test classification is applied to analyze whether
there is a significant difference in the perceptions of the customers of three select retail outlets
with regard to trolley facility in the retail outlet. Test results are specified below.
Table No.15: Chi-square test results
Chi-square = 1.82
degrees of freedom = 8
probability = 0.986, tabular value = 15.507
From the comparison of test results, null hypothesis is accepted. Hence, it is to conclude
that, there is no significant difference in the perceptions of the customers of three select retail
outlets with regard to trolley facility in the retail outlet.
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From the table, it is clear that, majority of the sample respondents have opined ‘Once in
a week’ which indicates that, they are frequent visitors to the store. Majority of the customers
from Spencer’s retail and More retail have also opined that they visit retail store once in a
week. It is also observed that interestingly there is a good number of customers who visit the
retail store ‘twice in a week’ which is an encouraging factor for the all the retail outlets. And it
is also observed that only few members are visiting the store ‘once in a month’.
From the survey, it is clear that, majority of the sample respondents from reliance, i.e.,
37% of them have opined ‘reference group’ which indicates that, majority of the customers
came to know about the Reliance from reference group. From Spencer’s and More, it is also
observed that, majority of the sample respondents, i.e., 37.6% and 37.3% have opined
‘reference group’, which indicates that, majority of the customers came to know about the
Retail stores from ‘Reference Groups’. And also electronic media is the next effective media in
creating the awareness of the retail stores and next follows is the outdoor media.
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From the test results, it is clear that, 76.6% of the Reliance customers have opined that
the store is visible and easily accessible for shopping. 72.6% of the More retail and 80.3% of the
Spencer’s retail have also opined that the store is highly visible and easily accessible for the
customers. Chi-square test is applied to analyze the significant association between the type of
retail outlet and the customers’ perception on the visibility and accessibility for shopping. From
the results, it is clear that, chi-square calculated value is 7 and this is greater than the tabular
value, i.e., 5.99, hence null hypothesis is rejected. Therefore, there is an association between
the type of retail outlet and the customers’ perception on the visibility and accessibility for
shopping.
CUSTOMERS’ PERCEPTION ON AMBIENCE AT THE STORE
Table No.19: customers’ perception on ambience at the store
From the test results, it is clear that, 72.4% of the Spencer’s customers have opined that
the ambience at the store is satisfactory. 68.6% of the More retail and 60.1% of the Reliance
retail have also opined that the ambience at the store is satisfactory. Chi-square test is applied
to analyze the significant association between the type of retail outlet and the customers’
perception on the ambience at the store. The results clearly show that the calculated value of
Chi-square is 0.44 which is less than the tabular value, i.e., 5.99, hence null hypothesis is
accepted. Therefore, it is to conclude that, there is no significant association between the type
of retail outlet and the customers’ perception on the ambience at the store.
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The demographic profile of sample respondents has shown that, majority of the sample
respondents are resident of urban areas because of the reasons that, majority of the retail
outlets are located in urban areas, further, it is observed hat Hyderabad comprises highest
urban customers and Vijayawada has highest percentage of rural customers. Further, age class
has shown that, majority of the customers are belongs to 45-60 years. Further, majority of the
sample respondents are from male category (i.e., 73.8%). From the study on product mix, it is
observed that, majority of the customers are preferred to purchase Grocery products from the
retail stores from all the three companies’ select retail outlets. And further, it is observed that
majority of the customers shopping duration is 30-60 minutes. With reference to perception on
retail outlets’ layout structure, it is observed that majority of the customers have given
satisfactory rating to all the three select retail companies’ outlets. Chi-square test results have
shown that there is a significant difference in the perceptions of the customers of three select
retail outlets with regard to layout in the retail outlets. From Spencer’s retail and More retail,
majority of the sample respondents have opined ‘satisfactory’ on availability of catalogues.
With regard to parking space availability, customers are satisfied with the ample space
provided at all the three retail chains. Trolleys & baskets facilities are observed that they are
not sufficiently provided for carrying goods in the spencer’s and more outlets. Further, Chi-
square test results have shown that there is no significant difference in the perceptions of the
customers of the three select retail outlets with regard to parking and trolleys & basket facilities
in the retail outlets.
From the analysis on the warrantees, sufficiency stock, quality level of the products and
the employee’s knowledge on products, it is observed that, majority of the customers have
given satisfaction rating. Further, Chi-square test results have shown that there is no significant
difference in the perceptions of the customers of the three select retail outlets in this regard.
The study on visiting retail outlet has shown that, majority of the customers have opined that
they will visit the retail stores once in a week. With regard to convenience of location for
shopping, it is observed that, the retail outlets’ location is convenient for shopping. With
regard to ambience at the stores, it is observed that, retail outlets are providing convenient
ambience at the store. The chi-square test results have shown that, there is no significant
difference in the perception of the customers of select retail outlets.
The preference of the customers with regard to type of goods, it is observed that,
majority of the customers have given that, they prefer indigenous goods than the imported
goods. With regard to overall perception on the product mix of retail outlets, the following
observations are made. With regard to reliance retail outlets basing on the average weights,
the customers are not satisfied by the location distance from home, product mix store brands
product display, home delivery and customer service. Whereas the customers are satisfied by
the safety & security, store interior & exterior, quality level of goods and loyalty programs.
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