CHAPTER-4 FINDINGS AND CONCLUSIONS - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/10202/11/11... · 2015. 12. 4. · 15/9/2012 NILESH ARORA 106 Family Status Analysis Table-4.8

15/9/2012 NILESH ARORA

98

CHAPTER-4

FINDINGS AND CONCLUSIONS


99

4.1 FINDINGS - RAJASTHAN

4.1.1 DEMOGRAPHICS ANALYSIS

Age Group Analysis Table -4.1

Age Group (in years) No. of Respondents

15-25 112

26-35 181

36-45 108

46-55 30

56 and above 11

Total 442

AGE GROUP ANALYSIS

112

181

108

3011

0

50

100

150

200

15-25 26-35 36-45 46-55 56 and above

Age Group (yrs)

No

. o

f R

esp

on

den

ts

Fig. 4.1

Findings:

The respondents included the age group ranging from 15 yrs to above 60 years. 25% of the

total respondents were of the age group 15-25 years, 41% (181) of the total respondents

were of the age group 26-35 years and 24% were of the age group 36-45 years. Thus, above

findings show that majority of the respondents who like to shop are from the age group of

26-35 years. And the people above the age of 56 years move out very less to shop.


100

Gender Analysis

Table- 4.2

GENDER ANALYSIS- RAJASTHAN

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Male 260 58.8 58.8 58.8

Female 182 41.2 41.2 100.0

Total 442 100.0 100.0

Fig. 4.2

Findings:

The gender analysis of the data of Rajasthan reveals that Out of the total of 442

respondents 260 respondents that accounts for 58.8% of the sample size are male and 182

respondents i.e. 41.2% are female. The analysis shows that both the genders have been

given due importance while collecting the data.


101

City Analysis

Table-4.3

CITY ANALYSIS – RAJASTHAN

Frequency Percent Valid Percent

Cumulative

Percent

Valid JAIPUR 120 27.1 27.1 27.1

AJMER 102 23.1 23.1 50.2

JODHPUR 113 25.6 25.6 75.8

BIKANER 107 24.2 24.2 100.0

Total 442 100.0 100.0

Fig. 4.3

Findings:

The above findings show that approximately equal weight age has been given to all the four

representative cities of Rajasthan. All the four cities Jaipur, Ajmer, Jodhpur and Bikaner

constitute of almost equal share of the entire sample size each having a share of

approximately 25%. Thus, all the four cities have almost equal participation in the research

and thus have a true representation.


102

Occupation Analysis

Table-4.4

Fig. 4.4

Findings:

The above findings reveal that majority of the respondents belongs to service class and

business class. Together the constitute 85% of the population. Housewives, students,

professionals, and retired people constitute rest 15% of the responses.

OCCUPATION


Cumulative

Percent

Valid Business 133 30.1 30.1 30.1

Service 243 55.0 55.0 85.1

Profession 15 3.4 3.4 88.5

Student 24 5.4 5.4 93.9

Housewife 27 6.1 6.1 100.0

Total 442 100.0 100.0


103

Source of Income Analysis

Table-4.5

Fig. 4.5

Findings:

The above findings show that majority of the respondents i.e. 76% have single source of

income whereas 23% of the total respondents have double income source. 0.5% (students)

has no income source.

SOURCE OF INCOME

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid No Income Source 2 .5 .5 .5

Single 339 76.7 76.7 77.1

Double 101 22.9 22.9 100.0

Total 442 100.0 100.0


104

Education Status Analysis

Table-4.6

EDUCATION

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Intermediate 46 10.4 10.4 10.4

Graduate 180 40.7 40.7 51.1

Post Graduate 164 37.1 37.1 88.2

Professional 52 11.8 11.8 100.0

Total 442 100.0 100.0

Fig. 4.6

Findings:

The above table reveals that almost all categories of respondents were included as a part of

the survey. 40% of the respondents were graduates, 37% were post graduates, 11% of the

total respondents were intermediate qualified and 12% were having a professional

qualification.


105

Marital Status Analysis

Table-4.7

MARITAL STATUS

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid SINGLE 108 24.4 24.4 24.4

MARRIED 94 21.3 21.3 45.7

MARRIED WITH

CHILDREN 240 54.3 54.3 100.0

Total 442 100.0 100.0

Fig. 4.7

Findings:

The above results show that 54% of the total respondents are married with children, 25%

are married and 21% are unmarried respondents.


106

Family Status Analysis

Table-4.8

FAMILY STATUS


Cumulative

Percent

Valid NUCLEAR 310 70.1 70.1 70.1

JOINT 132 29.9 29.9 100.0

Total 442 100.0 100.0

Fig. 4.8

Findings:

The above table shows that out of the total 442 respondents 70% have nuclear families and

rest 30% have joint families.


107

Income Group Analysis

Table-4.9

INCOME GROUP


Cumulative

Percent

Valid Rs. 0-20,000 111 25.1 25.1 25.1

Rs. 21,000-40,000 209 47.3 47.3 72.4

Rs.41,000-60,000 105 23.8 23.8 96.2

>Rs.60,000 17 3.8 3.8 100.0

Total 442 100.0 100.0

Fig. 4.9

Findings:

The table shows that 25% of the respondents come under the income group of Rs. (0-

20,000), 47% of the total respondents have their income group as Rs. (21,000-40,000), 24%

come under the income group Rs. (41,000-60,000) and only 4% of the respondents have

their income above Rs.60, 000.


108

4.1.2 OTHER ANALYSIS

Q: 1 How frequently do you shop?

Table-4.10

Frequency of shopping

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Weekly 171 38.7 38.7 38.7

Fortnightly 240 54.3 54.3 93.0

Monthly 31 7.0 7.0 100.0

Total 442 100.0 100.0

Fig. 4.10

Findings:

When asked about the frequency of shopping, the findings showed that majority of the

respondents i.e. 54% go out for shopping after every fifteen days, whereas 39% go weekly

and only 7% go out monthly for shopping.


109

Q: 2 What percentage of your disposable income you spend on-

Table-4.11

Spending on Necessities, Comforts and Luxuries

Percentage of

disposable

income

No. of

respondents

(Necessities)

No. of

respondents

(Comforts)

No. of

respondents

(Luxuries)

0-20% 38 148 349

20%-40% 114 172 62

40%-60% 163 103 25

60%-80% 120 19 6

80%-100% 7 0 0

442 442 442

Fig. 4.11

Findings:

The above table-4.11 shows that in Rajasthan 37% of the total respondents spend 40%-60%

of their disposable income on buying necessities. 28% of the people spend more that 60%

of it on buying necessities and 26% of the respondents spend 20%-40% of their disposable

income on buying necessities. These findings show that people in Rajasthan spend major

portion of their disposable income on buying necessities.


110

Fig. 4.12

Findings:

The above table-4.11 shows that in Rajasthan 39% of the total respondents spend 20%-40%

of their disposable income on buying comforts. 34% of the people spend only 0-20% of it

on buying comforts and only a small percentage i.e.27% of the respondents spend above

40% of their disposable income on buying comforts. These findings show that people in

Rajasthan spend a comparatively smaller portion of their disposable income on buying

comforts.

Fig. 4.13

Findings:

The above table-4.11shows that in Rajasthan 79% of the total respondents spend only 0-

20% of their disposable income on buying luxuries and only 21% of the people spend

above 20% of it on buying luxuries. These findings show that people in Rajasthan spend

very small portion of their disposable income on buying comforts.


111

Q: 3 Where do you prefer to shop from?

Table-4.12

Where do you prefer to shop from?

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Traditional Outlet 113 25.6 25.6 25.6

Organized Retail Outlet 60 13.6 13.6 39.1

Both 269 60.9 60.9 100.0

Total 442 100.0 100.0

Fig. 4.14

Findings:

The table 4.12 reveals that 26% of the total 442 respondents in Rajasthan still shop only

from traditional outlets and whereas only 14% of the respondents shop only from

Organized retail outlet or a shopping mall. Majority of the respondents i.e. 61% use both

traditional as well as modern form of retailing as their shopping preferences. Thus, it can be

said that shopping trends in Rajasthan is shifting towards modern form but still a lot of

people prefer the traditional form of retailing. People prefer both the shopping destinations

together to fulfill their shopping needs.


112

Q: 4 What is your frequency of visiting a Traditional outlet?

Table-4.13

Frequency of visiting a Traditional outlet

Frequency Percent Valid Percent Cum. Percent

Valid Don't visit a T. outlet 60 13.6 13.6 13.6

Daily 7 1.6 1.6 15.2

Weekly 242 54.8 54.8 69.9

Fortnightly 106 24.0 24.0 93.9

Monthly 27 6.1 6.1 100.0

Total 442 100.0 100.0

Fig. 4.15

Findings:

The above fig 4.15 shows the frequency of visiting a traditional outlet. Majority (55%) of

the respondents visits a traditional outlet on a weekly basis and 24% of the people visit

fortnightly. Only 6% of the respondents visit the traditional outlet monthly. 14% of the

respondents who do not prefer to shop from traditional outlet do not visit a traditional outlet

at all. Thus, shopping from traditional outlet is preferred either weekly or fortnightly.


113

Q: 5 What is the frequency of visiting an Organized retail outlet/shopping mall?

Table-4.14

Frequency of visiting an Organized retail outlet/shopping mall


Valid Don't visit an Modern outlet 100 22.6 22.6 22.6

Weekly 131 29.6 29.6 52.3

Fortnightly 131 29.6 29.6 81.9

Monthly 80 18.1 18.1 100.0

Total 442 100.0 100.0

Fig. 4.16

Findings:

The above table shows the frequency of visiting an organized retail outlet or a shopping

mall. Majority (59%) of the respondents visits an organized retail outlet weekly or

fortnightly. and 18% of the people visit monthly. 23% of the respondents do not visit a an

organized retail outlet or a shopping mall at all. Thus, shopping from an organized retail

outlet or a shopping mall is preferred weekly, fortnightly and monthly.


114

Q: 6 Who in your family takes the decision regarding the choice of retail outlet?

Table-4.15

Who in your family takes the decision regarding the choice of retail outlet?


Valid Self 93 21.0 21.0 21.0

Spouse 61 13.8 13.8 34.8

Joint 240 54.3 54.3 89.1

Other Family Members 48 10.9 10.9 100.0

Total 442 100.0 100.0

Fig. 4.17

Findings:

The above analysis shows the decision making role in a family regarding the choice of a

retail outlet. 54% respondents said that they jointly with their spouse decide about the retail

store choice whereas 21% of the respondents take this decision on their own. 14% are

dependents on their spouse and 11% are dependent on their other members of the family

for the store choice.


115

Q: 7 Rating of factors reflecting your perception regarding Organized Retailing.

Table-4.16

RATING V1 V2 V3 V4 V5 V6 V7 V8 V9 V10 V11 V12 Total

Responses

S. Disagree 42 0 8 5 14 13 5 0 10 95 38 7 237

Disagree 55 84 61 60 56 65 60 9 62 81 58 1 652

NAND 101 87 187 112 60 121 110 76 110 46 114 54 1178

Agree 192 187 122 204 119 137 164 217 150 125 133 191 1941

S. Agree 52 84 64 61 193 106 103 140 110 95 99 189 1296

Where:

V1- One Stop Shopping

V2- Wide Merchandise assortments/ variety

V3- Sales Promotion Schemes like special offers discounts on bulk buying etc.

V4- Whole family entertainment along with shopping

V5- Shopping from an organized retail outlet/Mall is a Status symbol

V6- Multiple brands under one roof helps comparison ensures best buying.

V7- Located in prime locations thus ensures approachability.

V8- Exotic Visual Merchandising/displays attract customer attention

V9- Good parking facilities

V10- Cater to the needs of all income groups

V11- Excellent Customer Services by Professionally qualified sales people

V12- Good ambience

Findings:

The above tabular analysis shows that more than fifty percent of the responses for each

perception variable rated on a five-point likert scale come under either agree or strongly

agree category. Only 17% of the total responses rating these variables account for either

disagree or strongly disagree category whereas rest 22% neither agree nor disagree with

these decision variables. Thus, it can be interpreted that majority of the people perceive

organized retailing favorably based on these twelve decision variables.


116

(A) Key variables affecting the customer perception about organized retailing in

Rajasthan-Factor Analysis

Factor analysis is used to reduce these 12 variables into 3 uncorrelated representative

factors. However, due to large number of store attributes the results appear to be vague and

interpretation difficult. Therefore, these 12 variables have transformed into small number

of representative factors through factor analysis as below.

Factor analysis

Prior to running the factor analysis Kaiser-Meyer-Olkin (KMO) measure of sample

adequacy and Bartlett’s test of Sphericity were performed. KMO measure of sample

adequacy is an index used to test appropriateness of the factor analysis. The minimum

acceptable value of KMO as supported by Othman and Owen (2001) is 0.5. Bartlett's test

of Sphericity indicates whether a given correlation matrix is an identity matrix, which

would indicate that your variables are unrelated. The significance level gives the result of

the test. In this case, the population correlation matrix is an identity matrix, is rejected by

Bartlett’s test of Sphericity as the approximate chi-square statistic is 195.7 with 66 degrees

of freedom, which is significant at the 0.05 level. The test was highly significant (p< .000)

suggesting the factors are highly correlated and are suitable for factor analysis. Table 4.17

shows the value of KMO statistic (0.855) is also larger than 0.5. Thus, factor analysis may

be considered an appropriate technique for analysis.

Results of Principal Component Analysis

Table-4.17

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .855

Bartlett's Test of Sphericity Approx. Chi-Square 1.957E3

df 66

Sig. .000


117

Factor Analysis: Communalities

Communalities indicate the amount of variance in each variable that is accounted for. Initial

communalities are estimates of the variance in each variable accounted for by all components

or factors. For principal components analysis, this is always equal to 1.0 (for correlation

analyses) or the variance of the variable (for covariance analyses). Extraction communalities

are estimates of the variance in each variable accounted for by the factors (or components) in

the factor solution. Small values (less than .5) indicate variables that do not fit well with the

factor solution, and should possibly be dropped from the analysis. In this case,

‘approachability/location’ of the store from home has a small value of 0.423 therefore this has

been dropped from further analysis. The other factor ‘sales promotion schemes’ introduced by

the retailers has a value of 0.495 which is very close to 0.5, therefore it has been considered for

further analysis.

Table-4.18: Communalities

Communalities

Initial Extraction

One stop Shopping 1.000 .789

Wide Merchandise assortment 1.000 .653

Sales Promotion schemes 1.000 .495

Whole family entertainment 1.000 .518

Status Symbol 1.000 .728

Multiple Brands under one roof helps comparison 1.000 .602

Prime Location Ensures Approachability 1.000 .423

Attractive Visual Merchandising 1.000 .632

Good Parking Facilities 1.000 .613

Caters to the needs of all income groups 1.000 .769

Excellent Customer Service 1.000 .657

Good Ambience 1.000 .524

Extraction Method: Principal Component Analysis.


118

Factor Analysis: Total Variance Explained

Table 4.19 gives Eigen values, variance explained, and cumulative variance explained for

our factor solution.

Variance in the observed variables accounted for by each component or factor. The "% of

Variance" column gives the percent of variance accounted for by each specific factor or

component, relative to the total variance in all the variables. The "Cumulative %" column gives

the percent of variance accounted for by all factors or components up to and including the

current one. In a good factor analysis, there are a few factors that explain a lot of the variance

and the rest of the factors explain relatively small amounts of variance. Therefore, we can leave

all those remaining factors which account for a very small amount of cumulative variance. In

this case, the research scholar has taken first three components or factors as Eigen value for

them is more than one (1) and account for a cumulative variance of 61.695 % and dropped

remaining 9 factors which account for only 38.305% of cumulative variance.

The Extraction Sums of Squared Loadings group gives information regarding the extracted

factors or components. For principal components extraction, these values are the same as those

reported under Initial Eigen values. Next is "Rotation Sums of Squared Loadings" group. This

column is displayed when it is requested for rotation of factors. In this case we have gone for

Varimax Rotation. The variance accounted for by rotated factors or components may be

different from those reported for the extraction but the Cumulative % for the set of factors or

components will always be the same (61.695%).


119

Table 4.19: Total Variance Explained

Total Variance Explained

Component

Initial Eigen values

Extraction Sums of Squared

Loadings

Rotation Sums of Squared

Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

1 4.707 39.222 39.222 4.707 39.222 39.222 3.202 26.680 26.680

2 1.573 13.110 52.332 1.573 13.110 52.332 2.439 20.326 47.006

3 1.124 9.363 61.695 1.124 9.363 61.695 1.763 14.689 61.695

4 .745 6.206 67.900

5 .673 5.607 73.507

6 .652 5.435 78.942

7 .624 5.198 84.139

8 .534 4.451 88.590

9 .453 3.772 92.362

10 .375 3.123 95.484

11 .282 2.348 97.832

12 .260 2.168 100.000

Extraction Method: Principal

Component Analysis.


120

Factor Analysis: Rotated Component Matrix

Table-4.20 displays rotated component matrix and reports the factor loadings for each variable

on the components or factors after rotation. Each number represents the partial correlation

between the item and the rotated factor. These correlations can help us formulate an

interpretation of the factors or components. This is done by looking for a common thread

among the variables that have large loadings for a particular factor or component. Factor

analysis rotation methods start with the original axes and apply a mathematical rotation which

simplifies the relationships between factors and variables.

Table-4.20: Rotated Component Matrix

Rotated Component Matrix

Components

1 2 3

One stop Shopping .757

Wide Merchandise assortment .616

Sales Promotion schemes .506

Whole family entertainment .704

Status Symbol -.714

Multiple Brands under one roof helps comparison .597

Prime Location Ensures Approachability

Attractive Visual Merchandising .793

Good Parking Facilities .776

Caters to the needs of all income groups .836

Excellent Customer Service .581

Good Ambience .713


Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 5 iterations.


121

Through Factor Analysis three (3) factors have been extracted out of 11 variables (one

factor i.e. approachability/location of the store was dropped due to very small

communality). In other words we have transformed 11 store variables into 3 representative

Factors. As is visible from the table 6 variables (organized retail store attributes) have

correlated with first Factor/component, 2 variables have correlated with second factor, and

remaining 3 variables have correlated with factor three.

Factor Analysis: Factor Transformation Matrix

The factor transformation matrix describes the specific rotation applied to our factor

solution. This matrix is used to compute the rotated factor matrix from the original (un-

rotated) factor matrix. If the off-diagonal elements are close to zero, the rotation was

relatively small. If the off-diagonal elements are large (greater than ±0.5), a larger rotation

was applied.

Table-4.21: Component Transformation Matrix

Component Transformation Matrix

Component 1 2 3

1 .753 .533 .386

2 -.327 .812 -.484

3 .571 -.238 -.785


Rotation Method: Varimax with Kaiser Normalization.

From the table-4.21 it is visible that most of the off-diagonal values are small or close to

zero indicating that the rotation required in the current case was small. For this study all the

variables have been correlated with 3 factors and have been named and shown in the table

4.22.


122

Table-4.22

Summary of the Key Retail store attributes framing Consumers’ Perception towards

Organized Retail Outlets and Shopping Malls

Factor 1 Factor 2 Factor 3

Customer service

and value for

money (26.680%)

Loading Attractive

overall visual

appeal

(20.326%)

Loading Customers’

general and

status needs

satisfaction

(14.689%)

Loading

Sales promotion

schemes .506

Attractive

visual

merchandising

.793

One stop

shopping .757

Whole family

entertainment .704 Good ambience .713

Wide

merchandise

and assortments

.616

Multiple brands

under one roof

helps comparison

.597

Status symbol -.714

Good parking

facilities .776

Caters to the need

of all income

groups

.836

Excellent customer

service .581

Findings:

The results of the Factor analysis show that there are three major factors that have emerged

on the basis of Varimax Rotation with Kaiser Normalization, with Factor loading greater

than 0.5. All the three factors together contribute to 61.95 percent of variance. The scholar

has conceptualized the identified factors as:


123

Factor 1- Customer service and value for money -26.680% of variance is explained by

this factor. Six statements namely Sales promotion schemes, Whole family entertainment,

Multiple brands under one roof helps comparison, Good parking facilities, Caters to the

need of all income groups, Excellent customer service were loaded significantly on this

factor. Thus, it is evident that customer service and value for money is very much

important for the shoppers in order perceive good about organized retailing as well as its

preference.

Factor 2 - Attractive overall visual appeal – This factor explained 20.326% of the total

variance. Two variables namely ‘Attractive visual merchandising’ and ‘Good ambience’

were loaded on this factor. Thus, it can be said that consumers of Rajasthan perceive this

factor as an important one while considering organized retail outlets or shopping malls for

their day to day shopping.

Factor 3 - Customers’ general and status needs satisfaction - 14.689% of the total

variance is explained by this factor. Three variables namely ‘One stop shopping’, ‘Wide

merchandise and assortments’, and ‘Status symbol’ were loaded on this factor. Thus, it can

be said that consumers of Rajasthan looks for a wider assortment of merchandise at one

place. Also, he perceives shopping from organized retail outlet or a shopping mall as a

status symbol.

Thus, it can be interpreted that the above mentioned three factors are the major factors that

affect the customer’s perception about organized retailing in Rajasthan.


124

Q: 8 What factors stop you from going to Organized retail outlet / Shopping Mall?

Table-4.23

FACTORS SCORE

Promotes Impulse Buying 1027

Low Quality Products 652

High Price 1387

Negative Store Image 627

No credit facility 992

Unapproachable 768

Loyalty to the traditional outlet 1071

Self service 593

Fig. 4.18

Findings:

The above table reveals the scoring of the factors that stop the shoppers to shop from an

organized retail outlet or a shopping mall. The scoring was done from 1 to 5 as 1= Not at

all affecting and 5=Most affecting. The chart shows that ‘High Price’ is the factor which is

given the maximum score of 1387 which is followed by ‘Loyalty to the traditional outlet’

and ‘Promotes Impulse Buying’ as the other major factors that affects the respondents

negatively when it come to shop from a modern retail outlet. Thus, it can be interpreted that

shoppers of Rajasthan are price conscious. They are loyal towards their traditional outlets

from where they have been shopping from years. Also, they try to limit their expenditure

on shopping trips i.e. they mostly go for a planned shopping.


125

Q: 9 How do you perceive Organized Retailing over Traditional form of Retailing?

Table-4.24

Perception about Organized retailing over Traditional form


Valid Not At All Good 123 27.8 27.8 27.8

Equally Good 170 38.5 38.5 66.3

Better 149 33.7 33.7 100.0

Total 442 100.0 100.0

Fig. 4.19

Findings:

The above table reveals that 28% of the total respondents perceive that organized retailing

is not at all good, whereas 38% people say it is as good as traditional retailing. 34% of the

respondents perceive that organized retailing is better than the traditional form of retailing.

Thus, it can be interpreted that organized retailing is favorably perceived to traditional form

of retailing in Rajasthan.


126

Q: 3 AND Q: 9 (Annexure-1) - HYPOTHESIS TESTING

Null Hypothesis (H0) - Customer preference is independent of customer perception

of organized retailing.

Chi Square analysis

Cross tabs Table-4.25

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Where do you prefer to

shop from * Perception

about Organized retailing

over Traditional form

442 100.0% 0 .0% 442 100.0%

Table-4.26

Where do you prefer to shop from * Perception about Organized retailing over

Traditional form Cross tabulation

Count

CUSTOMER PERCEPTION

Total

Not At All

Good

Equally

Good Better

CUSTOMER

PREFERENCE

Traditional Outlet 107 3 3 113

Organized Retail

Outlet/ Shopping

Mall

0 0 60 60

Both 16 167 86 269

Total 123 170 149 442


127

Table-4.27: Chi-Square Tests

Interpretation: Chi-Square

In a Chi-square test, for a 95 per cent confidence level, if the significance level (p-value) is

greater than or equal to 0.5, it signifies that there is no association between the two

variables in the cross tabulation and if the significance level is less that 0.5, then it signifies

that there is a significant relationship between the selected variables.

The results of the cross-tabulation

From the table 4.27, the Chi-square test reads a significance level (p-value) of .000 at 95

per cent confidence level. The lower the significance value, the less likely it is that the two

variables are independent (unrelated). In this case the significance value is .000, which

means that two variable i.e. Perception and Preference are indeed related. That is the null

hypothesis is rejected that Customer preference is independent of customer perception of

organized retailing. Thus, it can be interpreted that customer preference for organized

retailing is dependent on customer perception.

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 4.551E2a 4 .000

Likelihood Ratio 462.678 4 .000

Linear-by-Linear Association 135.484 1 .000

N of Valid Cases 442

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is

16.70.


128

To test the degree of association or dependency between the variables, Cramer’s V has

been used. The value of Cramer’s V can be seen in table-4.28

Cramer’s V

Table-4.28

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi 1.015 .000

Cramer's V .717 .000

Contingency Coefficient .712 .000


Findings:

Cramer’s V is a modified version of phi correlation coefficient, and is used in tables larger

than 2x2. The value for V ranges from 0 to 1. A large value for V merely indicates a high

degree of association. From the above analysis (table-) value for V is 0.717 which is very

high. Thus, from this it can be interpreted that the two variables have higher degree of

association or dependency. Thus, it can be said that the customer preference in Rajasthan is

strongly dependent on their perception about organized retailing.


129

Q: 10 (Annexure-1)

Factor Rankings according to the preference to shop from a Traditional Retail Outlet

Table-4.29

Variable

Rank

(Rajasthan)

Rank

(Jaipur)

Rank

(Ajmer)

Rank

(Jodhpur)

Rank

(Bikaner)

Proximity 5 10 2 8 5

Long term

Association 2 9 1 10 2

Credit Facilities 1 1 3 1 3

Bargaining

Advantage 2 2 5 2 7

Store Image/goodwill 7 7 2 3 7

Store Loyalty 3 4 9 3 5

Home Delivery 10 8 10 10 9

Availability of low

priced unbranded

products

8 5 8 7 8

Availability of

branded products at

low price

6 4 6 6 10

Customer

Relationship through

one to one interaction

7 6 9 7 7


130

Findings and Interpretation:

Table 4.29 shows the results of the rankings asked from the respondents according to their

Preference to shop from a Traditional Retail Outlet over an Organized one from 1 to 10, 1

being most preferred and 10 being least preferred. The above findings show that the ‘Credit

facilities’ available at the traditional outlets is the most important factor for the respondents

of Rajasthan, Jaipur and Jodhpur as it has been ranked as 1. Ajmer and Bikaner respondents

feel that it’s the ‘Long term association’ that makes them shop from a traditional retail

outlet. ‘Long term association’ and ‘bargaining advantage’ are the factors which has been

ranked 2 by the respondents of Rajasthan where as Jaipur and Jodhpur respondents ranked

‘bargaining advantage’ as 2. They feel that people can bargain well at a traditional outlet

and can get a better value for their money. Ajmer respondents have ranked ‘proximity’ and

‘store image/goodwill’ of the outlet as 2.

The third important factor in Rajasthan is found to be ‘store loyalty’ which also the same

for the respondents of Jaipur and Jodhpur. Respondents of Ajmer and Bikaner feels that

‘availability of credit facilities’ is the third important factor they consider a traditional retail

outlet for their shopping. Respondents of Jaipur and Jodhpur give very less importance to

the ‘long term association’ with the traditional retailers as they ranked this factor as 9.

‘Home delivery’ is the factor which is least affecting the respondents of Rajasthan as well

as of the four cities when considered separately as it has been ranked 10 by most of them.

Thus, it can be interpreted that ‘Credit facilities’, ‘bargaining advantage’, ‘Long term

association’ and the ‘store loyalty’ are the major factors that count for the people of

Rajasthan and the four cities the most to shop from a Traditional outlet. ‘Home delivery’ is

the factor which affect them the least. Also, it can be observed from the table that rankings

done by the respondents of Jaipur and Jodhpur are quite similar where as that of Ajmer and

Bikaner have similar rankings. Thus, it can be said that Jaipur and Jodhpur have similar

preferences for a traditional retailer where as respondents of Bikaner and Ajmer have

similar preferences for traditional retailing. This is further analyzed and tested by using

Spearman’s Rank correlation (Table-4.30).


131

Table-4.30: Spearman’s Rank correlation (rho)

Correlations

Rajasthan

-Ranks

Jaipur-

Ranks

Ajmer -

Ranks

Jodhpur

-Ranks

Bikaner

– Ranks

Spearman's rho Rajasthan-

Ranks

Correlation

Coefficient 1.000 .410 .546 .489 .749

*

Sig. (2-

tailed) . .240 .103 .151 .013

N 10 10 10 10 10

Jaipur-Ranks Correlation

Coefficient .410 1.000 -.248 .856

** -.090

Sig. (2-

tailed) .240 . .490 .002 .806

N 10 10 10 10 10

Ajmer –

Ranks

Correlation

Coefficient .546 -.248 1.000 .065 .582

Sig. (2-

tailed) .103 .490 . .859 .077

N 10 10 10 10 10

Jodhpur –

Ranks

Correlation

Coefficient .489 .856

** .065 1.000 .109

Sig. (2-

tailed) .151 .002 .859 . .765

N 10 10 10 10 10

Bikaner –

Ranks

Correlation

Coefficient .749

* -.090 .582 .109 1.000

Sig. (2-

tailed) .013 .806 .077 .765 .

N 10 10 10 10 10

*. Correlation is significant

at the 0.05 level (2-tailed).

**. Correlation is significant



132


Table-4.30 shows the rank correlation between the responses of the Rajasthan with the four

cities that are being covered for the purpose of the study. The value of Spearman’s rank

correlation (rho) is positive for all the cities and Rajasthan. This shows a positive

relationship among them. The cross analysis reveals that the value of rank correlation

coefficient for Rajasthan-Bikaner is 0.749 and Rajasthan-Ajmer is 0.546, this shows a

significant relationship among the two geographies. The correlation coefficient between

Jaipur and Jodhpur is 0.856 which is very close to +1. This shows a highly significant

(positive) relationship between the two cities when it comes to buying from a traditional

retail outlet. Jaipur has a negative and less significant correlation with Ajmer (-0.248) and

Bikaner (-0.090). The correlation coefficient between Ajmer and Bikaner is 0.582 which

shows a significant (positive) relationship between the two cities. Correlation coefficient

for Jodhpur-Ajmer (0.065) and Jodhpur-Bikaner (0.109) show very less significant

relationship among the cities.

Thus, from the cross analysis of Spearman’s rho it can be interpreted that Rajasthan and the

cities of Rajasthan under study have a positive correlation among them and the correlation

with Bikaner is the most significant when it comes to shop from a traditional retail outlet.

Jaipur-Jodhpur have highly significant correlation where as Ajmer-Bikaner have significant

correlation. Thus, it can be said that people of Jaipur and Jodhpur have similar preferences

for shopping from a traditional retail outlet and Ajmer and Bikaner have similar

preferences.


133

Q: 11 (Annexure-1)

Factor Rankings according to the preference to shop from an Organized Retail Outlet

Table-4.31

Variables Rank

(Rajasthan)

Rank

(Jaipur)

Rank

(Ajmer)

Rank

(Jodhpur)

Rank

(Bikaner)

Approachability 7 8 2 8 7

One Point Shopping for

all your needs 1 11 1 9 1

Price (value for

money) 11 12 2 11 1

Ambience 8 6 8 2 8

Store Image 3 2 6 2 3

Quality 1 1 3 1 1

Customer Service 6 8 6 11 3

Visual Merchandising/

displays 6 5 7 6 7

Parking Facilities 5 5 4 7 11

Entertainment 10 4 10 5 10

Status symbol 4 2 12 4 12

Availability of branded

products at low price 12 12 12 7 12


134


Table 4.31 shows the results of the rankings asked from the respondents according to their

preference to shop from an Organized Retail Outlet/shopping mall over a Traditional one

from 1 to 12, 1 being most preferred and 12 being least preferred. The above findings show

that the ‘Quality’ available at the organized retail outlets is the most important factor for

the respondents of Rajasthan, Jaipur, Jodhpur and Bikaner as it has been ranked as 1.

Ajmer respondents feel it as the third most important factor. ‘One point shopping for all

your needs’ is the other important factor for the people of Rajasthan, Ajmer and Bikaner.

‘Store image’ is the factor which has been ranked 3 by the respondents of Rajasthan and

the cities constituting the research area. ‘Status Symbol’ has been ranked 4 by the people of

Rajasthan and Jodhpur whereas people of Ajmer and Bikaner does not treat this factor as

important as they ranked it 12. ‘Customer service’, ‘Visual Merchandising /displays’ and

‘Parking facilities’ are the other main factors that motivate the people of Rajasthan to shop

from an organized retail outlet or a shopping mall. ‘Availability of branded products at low

price has been given least importance by the respondents of Rajasthan as it has been ranked

12 by them.

Thus, it can be interpreted that ‘Quality’, ‘One point Shopping for all needs’, ‘Store

image’, ‘Status symbol’ and ‘Visual merchandising/displays are the major factors that

count the most for the people of Rajasthan and the four cities covered under the study to

shop from an Organized retail outlet or a shopping mall. ‘‘Availability of branded products

at low price’ is the factor which affect them the least. Also, it can be observed from the

table that rankings done by the respondents of Jaipur and Jodhpur are quite similar where

as that of Ajmer and Bikaner have similar rankings. Thus, it can be said that Jaipur and

Jodhpur have similar preferences for a modern retailer where as respondents of Bikaner

and Ajmer have similar preferences for the new form of retailing. This is further analyzed

and tested by using Spearman’s Rank correlation (Table-4.32)


135

Table-4.32: Spearman’s Rank correlation (rho)

Correlations

Rajasthan

-Rank

Jaipur –

Rank

Ajmer-

Rank

Jodhpur-

Rank

Bikaner-

Rank

Spearman's rho Rajasthan-

Rank

Correlation

Coefficient 1.000 .572 .365 .319 .384

Sig. (2-

tailed) . .052 .243 .312 .218

N 12 12 12 12 12

Jaipur –Rank Correlation

Coefficient .572 1.000 -.255 .812

** -.096

Sig. (2-

tailed) .052 . .424 .001 .766

N 12 12 12 12 12

Ajmer-Rank Correlation

Coefficient .365 -.255 1.000 -.428 .792

**

Sig. (2-

tailed) .243 .424 . .166 .002

N 12 12 12 12 12

Jodhpur-

Rank

Correlation

Coefficient .319 .812

** -.428 1.000 -.208

Sig. (2-

tailed) .312 .001 .166 . .516

N 12 12 12 12 12

Bikaner-Rank Correlation

Coefficient .384 -.096 .792

** -.208 1.000

Sig. (2-

tailed) .218 .766 .002 .516 .

N 12 12 12 12 12

**. Correlation is significant



136


Table 4.32 shows the rank correlation between the responses of the Rajasthan with the four

cities that are being covered for the purpose of the study. The value of Spearman’s rho is

positive for all the cities and Rajasthan. This shows a positive relationship among them.

The cross analysis reveals that the value of Spearman’s rank correlation coefficient for

Rajasthan and Jaipur is (0.572). This shows a significant relationship among the two

geographies. The correlation coefficient between Jaipur and Jodhpur is 0.812 which is very

close to +1. This shows a highly significant (positive) relationship between the two cities

when it comes to buying from an organized retail outlet. Jaipur has a negative and less

significant correlation with Ajmer (-0.255) and Bikaner (-0.096). The correlation

coefficient between Ajmer and Bikaner is 0.792 which is very close to +1. This shows a

significant (positive) relationship between the two cities. Correlation coefficient for

Jodhpur-Ajmer (-0.428) and Jodhpur-Bikaner (-0.208) show a negative and less significant

relationship among the cities.

Thus, from the cross analysis of Spearman’s rho it can be interpreted that Rajasthan and the

cities under Rajasthan have a positive correlation among them and the correlation with

Jaipur is the most significant when it comes to shop from an organized retail outlet or a

shopping mall. Jaipur-Jodhpur have highly significant correlation where as Ajmer-Bikaner

have highly significant correlation. Thus, it can be said that people of Jaipur and Jodhpur

have similar preferences for shopping from an organized retail outlet or a shopping mall

and Ajmer and Bikaner have similar preferences.


137

Q: 12 Are you satisfied with the traditional retailing?

Table-4.33

Are you satisfied with the traditional retailing?


Cumulative

Percent

Valid Yes 321 72.6 72.6 72.6

No 121 27.4 27.4 100.0

Total 442 100.0 100.0

Fig. 4.20

Findings:

The above findings show that 73% of the respondents from Rajasthan are satisfied with the

traditional form of retailing where as 27% of them are not satisfied. From these findings it

can be interpreted that organized retailing has a lot of scope in Rajasthan as there as many

people who are not satisfied with the traditional form of retailing.


138

Q: 13 Would you like to shift from traditional retailing to organized retailing?

Table-4.34

Would you like to shift from traditional retailing to organized retailing?


Valid Yes 119 26.9 26.9 26.9

No 321 72.6 72.6 99.5

Already Shifted 2 .5 .5 100.0

Total 442 100.0 100.0

Fig. 4.21

Findings:

27% of the respondents who are not satisfied with the traditional retailing want to shift to

the new form of retailing. This is an opportunity for the organized retailing. As this 27%

dissatisfied customers can be the readymade market for the new form of retailers.


139

Q: 14 Are you satisfied with the Organized retailing? Table-4.35

Are you satisfied with the Organized retailing


Cumulative

Percent

Valid YES 324 73.3 73.3 73.3

NO 118 26.7 26.7 100.0

Total 442 100.0 100.0

Fig. 4.22

Findings:

Almost similar figures are shown in the above table regarding the satisfaction with

organized retailing. 73% of the respondents from Rajasthan are satisfied with the

Organized retailing where as 27% of them are not satisfied. From these findings it can be

interpreted that people has certain problems while shopping from an organized retail outlet

or a shopping mall. Thus, retailers in this segment have to rethink and plan accordingly so

that they do not loose their share as well as they can retain and grow their customer base.

On the other side majority of the respondents are satisfied with the new form of retailing,

which is a good sign for the retailers.


140

Q: 15 Would you like to shift from Organized to traditional Retailing?

Table-4.36

Would you like to shift from Organized to traditional Retailing?


Valid Yes 116 26.2 26.2 26.2

No 324 73.3 73.3 99.5

Already Shifted 2 .5 .5 100.0

Total 442 100.0 100.0

Fig. 4.23

Findings:

The above table shows that 26% of the respondents who are not satisfied with the

organized retailing want to shift back to the traditional retailing and 0.5% of them have

already been shifted. This is an alarming situation for the modern retailers. Retailers need

to rethink and plan their strategy accordingly to retain their customer base also try to

delight their satisfied customers.


141

Q: 16 Do you think organized retailing is successful in your city?

Table-4.37

Do you think organized retailing is successful in your city?


Cumulative

Percent

Valid YES 283 64.0 64.0 64.0

NO 159 36.0 36.0 100.0

Total 442 100.0 100.0

Fig. 4.24

Findings:

64% of the respondents of Rajasthan think that organized retailing is successful in their

city/state where as 36% of them feel that it is still not successful. Thus, majority of the

respondents have a positive perception about the modern form of retailing.


142

Q: 17 How many Organized retail outlets have come up in your city in the last one year?

Table-4.38

How many Organized retail outlets have come up in your city in the last one

year?


Valid 0-2 34 7.7 7.7 7.7

3-5 158 35.7 35.7 43.4

6-8 90 20.4 20.4 63.8

Above 8 67 15.2 15.2 79.0

Don't Know 93 21.0 21.0 100.0

Total 442 100.0 100.0

Fig. 4.25

Findings:

36% of the respondents say that 3-5 new organized retail outlets have come up in the last

one year in their city. 20% say 6-8 outlets and 15% say more than 8 outlets have come up

in their city. 21% of the respondents are not aware of the new modern outlets in their city.


143

Q: 18 Shopping Malls have come up in your city in the last one year? Table-4.39

How many Shopping Malls have come up in your city in the last one year?


Valid 0 133 30.1 30.1 30.1

1 167 37.8 37.8 67.9

2 26 5.9 5.9 73.8

3 22 5.0 5.0 78.7

Don't Know 94 21.3 21.3 100.0

Total 442 100.0 100.0

Fig. 4.26

Findings:

When asked about the no. of Shopping malls opened in their city in last one year, 38%

respondents said 1 mall, 6% said 2 and 5% said 3. 30% of the respondents said there is no

mall opened in last one year in their city and 21% of the respondents were not aware about

the new mall opened, if any, in their city in the last one year. These figures reveal that the

speed of growth of organized retail in the Rajasthan is still very slow very few malls are

coming up in the cities of Rajasthan.


144

Q: 19 How many Organized retail outlets have closed in your city in the last one year?

Table-4.40

How many Organized retail outlets have closed in your city in the last one year?


Valid 0-2 160 36.2 36.2 36.2

3-5 81 18.3 18.3 54.5

6-8 6 1.4 1.4 55.9

Above 8 2 .5 .5 56.3

Don't Know 193 43.7 43.7 100.0

Total 442 100.0 100.0

Fig. 4.27

Findings:

When asked about the no. of organized retail outlets closed in their city in last one year,

36% respondents said 0-2 outlets, 18% said 3-5 and 1% said 6-8 outlets and 1% said more

than 8 outlets have closed in the last one year. 44% of the respondents had no idea about

the modern outlets closed in their city in the last one year. These figures reveal that some, if

not many outlets are still not successful in the Rajasthan.


145

4.2 CROSS ANALYSIS- RAJASTHAN

4.2.1 DEMOGRAPHICS- SHOPPING PREFERENCE ANALYSIS

Age-Shopping Preference Analysis

Table-4.2.1

Age Group (in

years) Traditional Retail Outlet Organized Retail outlet Both

15-25 28 9 75

26-35 40 30 111

36-45 30 16 62

46-55 10 4 16

56 and above 5 1 5

Total Respondents 113 60 269

Findings:

The above table shows that out of the total 60 people who shop from modern retail 50% of

them belong to the age group 26-35 yrs. And more than 25% of them belong to the age

group 36-45yrs. Thus, it can be interpreted that people who are young and who are below

the age of 45 yrs prefer organized retail outlet or a shopping mall to shop for their

necessary requirements. Also, it can be seen from the above bar char that majority (41%) of

the respondents who shop from both traditional as well as organized retail outlet, belong to

the age group 26-35 yrs. 28% of them belong to the age group 15-25 yrs. And 23% of them

belong to the age group 36-45yrs. The findings shows that majority of the respondents

(35%) that prefer to shop only from a traditional retailer belong to the age group 26-

35yrs.and 27% of them belong to the age group 36-45yrs. On the other side it can be seen

that respondents of the age above 46yrs prefer more of traditional retail outlet or a

combination of both. Very few of them prefer a modern retail outlet for their shopping.

Thus, it can be interpreted that in Rajasthan people of the age ranging from 26-35yrs prefer

shopping from an organized retail outlet or a combination of the two formats the most,

followed by the age group 36-45yrs.


146

Gender-Shopping Preference Analysis

Table-4.2.2

GENDER * SHOPPING PREFERENCE Cross tabulation

Count

SHOPPING PREFERENCE

Total Traditional Outlet Organized Retail Outlet Both

GENDER Male 61 35 164 260

Female 52 25 105 182

Total 113 60 269 442

Findings:

The cross analysis of gender and shopping preference of Rajasthan show that almost

similar patterns are followed by both the gender respondents. The analysis show that 77%

of the males and 72% of the females prefer to shop from either a modern retail outlet or a

combination of both traditional and a modern retailer. Thus, it can be interpreted that both

the genders have almost similar preferences for the store type for their shopping in

Rajasthan.

City-Shopping Preference Analysis- Rajasthan

Table-4.2.3

CITY * SHOPPING PREFERENCE Cross tabulation

Count

SHOPPING PREFERENCE

Total Traditional Outlet Organized Retail Outlet BOTH

CITY JAIPUR 20 41 59 120

AJMER 36 3 63 102

JODHPUR 37 0 76 113

BIKANER 20 16 71 107

Total 113 60 269 442


147

Findings:

The cross analysis of City and the preference of the store type reveals Jaipur is the city

where people prefer the most to shop from a modern retail outlet or a shopping mall. 34%

of the respondents from Jaipur prefer to shop only from an organized retail outlet. Only

17% of the respondents like to shop from a traditional retailer. Remaining 49% prefer to

shop from a combination of the two store formats. In Ajmer (62%) and Jodhpur (67%)

people prefer a combination of the two formats rather than going to a modern retailer alone.

Whereas, approximately 35% of the respondents from both the cities still prefer the

traditional form of retailing. 15% respondents of Bikaner prefer to shop from a modern

retail outlet and 66% of them prefer a combination of the two store type. 19% of them

prefer only a traditional outlet for shopping. Thus, it can be interpreted that Jaipur is the

city in Rajasthan where people prefer to shop from a modern retail outlet or a shopping

mall the most. It is followed by Bikaner, whereas; in Jodhpur and Ajmer people prefer to

use a combination of both the store types. The percentage of people is very less in Ajmer,

Jodhpur and Bikaner when it comes to shopping from organized retail outlet only.

Traditional retailing is still very much preferred in these cities.

Occupation-Shopping Preference Analysis

Table-4.2.4

OCCUPATION * SHOPPING PREFERENCE Cross tabulation

Count

SHOPPING PREFERENCE

Total

Traditional

Outlet

Organized Retail Outlet/

Shopping Mall Both

OCCUPATION Business 43 27 63 133

Service 47 21 175 243

Profession 0 11 4 15

Student 1 1 22 24

Housewife 22 0 5 27

Total 113 60 269 442


148

Findings:

The above cross analysis shows that 72% of the service class respondents and 47% of the

business class people prefer shopping from a combination of both the store types whereas

73% of the people who are professionals like shopping from an organized retail outlet only.

92% of the students also prefer a combination of the two store types for their shopping

where as 81% of the housewives, 32% of businessmen and 19% of the service class still

prefer a traditional outlet for fulfilling their day to day requirements. Thus, it can be

interpreted that majority of professional class people prefer shopping from a modern retail

outlet or a shopping mall whereas majority of the other occupation classes except

housewives prefer a combination of modern as well as traditional retail format for their

shopping.

Income Source-Shopping Preference Analysis

Table-4.2.5

SOURCE OF INCOME * SHOPPING PREFERENCE Cross tabulation

Count

SHOPPING PREFERENCE


SOURCE OF

INCOME

No Income Source 0 0 2 2

Single 90 40 209 339

Double 23 20 58 101

Total 113 60 269 442

Findings:

The table shows that 20% of the double income families and only 12% of the single

earning families prefer shopping from a modern retailer in Rajasthan. 27% of the single

income and 23% of the double income families still prefer a traditional retail outlet and rest

prefer a combination of the two store types. Thus, it can be said that source of income has

some effect on the purchase preference as very less percentage of the respondents prefer

shopping only from modern retailer or a shopping mall.


149

Education-Shopping Preference Analysis

Table-4.2.6

EDUCATION * SHOPPING PREFERENCE Cross tabulation

Count

SHOPPING PREFERENCE

Total

TRADITIONA

L OUTLET

ORGANIZED

RETAIL

OUTLET/

SHOPPING

MALL BOTH

EDUCATION INTERMEDIATE 34 5 7 46

GRADUATE 62 13 105 180

POST

GRADUATE 17 21 126 164

PROFESSIONAL 0 21 31 52

Total 113 60 269 442

Findings:

The above cross analysis between education level and preference of a retailer shows that

74% of the people with intermediate as their qualification, 34% of graduates still prefer

shopping only from a traditional retail outlet. 13% of post graduates and 40% of the

respondents who are professionally qualified prefer shopping from a modern retail outlet

only. Also, it can be seen that only 26% of the people who are inter pass prefer shopping

from a modern retailer or a combination of the two store types. Thus, it can be interpreted

that education qualification also has some impact on the shopping behavior of the people of

Rajasthan.


150

Marital Status -Shopping Preference Analysis

Table-4.2.7

MARITAL STATUS * SHOPPING PREFERENCE Cross tabulation

Count

SHOPPING PREFERENCE


MARITAL

STATUS

Single 18 17 73 108

Married 23 8 63 94

Married With

Children 72 35 133 240

Total 113 60 269 442

Findings:

The above cross analysis reveals that 83% of the single status respondents, 70% of the

respondents who are married and have children and 76% of the ‘married with no child’

class respondents shop either from an organized retailer or a combination of the two store

types. 30% of the ‘married with children’ class people still prefer a traditional outlet on for

their shopping. Thus, it can be said that people of all marital status prefer shopping from

organized retailer as majority of them prefer either modern retailer alone or a in

combination with a traditional retailer.

Family Status -Shopping Preference Analysis

Table-4.2.8

FAMILY STATUS * SHOPPING PREFERENCE Cross tabulation

Count

SHOPPING PREFERENCE

Total Traditional Outlet Organized Retail Outlet/ Both

FAMILY

STATUS

Nuclear 82 44 184 310

Joint 31 16 85 132

Total 113 60 269 442


151

Findings:

The analysis shows that 26% of the nuclear families and 23% of the joint families prefer

shopping from a traditional outlet where as 74% of the nuclear families and 77% of the

joint families prefer shopping either from an organized retail outlet or traditional retail

outlet. Thus, it can be said that people from both nuclear families and joint families have

similar preferences for shopping destinations.

Income Group -Shopping Preference Analysis

Table-4.2.9

INCOME GROUP * SHOPPING PREFERENCE Cross tabulation

Count

SHOPPING PREFERENCE

Total

TRADITIONAL

OUTLET

ORGANIZED RETAIL

OUTLET/ SHOPPING

MALL BOTH

INCOME

GROUP

Rs. 0-20,000 64 4 43 111

Rs. 21,000-

40,000 35 31 143 209

Rs.41,000-

60,000 13 19 73 105

>Rs.60,000 1 6 10 17

Total 113 60 269 442

Findings:

The above table shows that 58% of the respondents whose income is less than Rs.20,000

per month prefer shopping from a traditional outlet.17% of the respondents having monthly

income between Rs. 21,000-Rs. 40,000, 12% having income between Rs. 41,000- Rs.

60,000 and only 6% having income above Rs. 60,000 shop from traditional outlet. Thus, it

can be interpreted that lesser the income more is the preference for traditional outlet.


152

4.2.2 DEMOGRAPHICS- CUSTOMER PERCEPTION ANALYSIS

Gender-Perception about Organized Retailing

Table-4.2.10

GENDER * CUSTOMER PERCEPTION Cross tabulation

CUSTOMER PERCEPTION

Total Not At All Good Equally Good Better

GENDER Male 67 104 89 260

Female 56 66 60 182

Total 123 170 149 442

Findings:

The above cross analysis between gender and perception reveals that 34% of the males and

33% of the females perceive that organized retailing is better than traditional retailing

whereas 26% of the males and 31% females perceive it to be not at all good. 40% of the

males and 36% of the females perceive it to be equally good as traditional retailing. Thus, it

can be interpreted that majority of both the genders either perceive organized retailing to be

equally good or better than traditional retailing. Thus, it can be said that people of

Rajasthan has a positive perception about organized retailing.

City-Perception about Organized Retailing

Table-4.2.11

CITY * CUSTOMER PERCEPTION Cross tabulation

CUSTOMER PERCEPTION


CITY Jaipur 29 37 54 120

Ajmer 41 35 26 102

Jodhpur 39 47 27 113

Bikaner 14 51 42 107

Total 123 170 149 442


153

Findings:

The above analysis shows that 76% of the respondents from Jaipur, 60% from Ajmer, 65%

from Jodhpur and 87% from Bikaner perceive organized retailing either better or equally

good as traditional form of retailing. Only 24% respondents from Jaipur, 40% from Ajmer,

35% from Jodhpur and 13% from Bikaner perceive it to be not at all good.

Thus, it can be interpreted that majority of the respondents from all the representative cities

of Rajasthan have positive perception about organized retailing.

Occupation-Perception about Organized Retailing

Table-4.2.12

OCCUPATION * CUSTOMER PERCEPTION Cross tabulation

Count

CUSTOMER PERCEPTION


OCCUPATION Business 50 39 44 133

Service 53 111 79 243

Profession 0 1 14 15

Student 1 16 7 24

Housewife 19 3 5 27

Total 123 170 149 442

Findings:

The above analysis shows that 62% of business class, 78% of service class, 100% of the

professionals, 96% of the students and 30% of the housewives perceive organized retailing

to be either better than or equally good as traditional retailing. Only 38% of business class,

22% of service class, 0% of the professionals and 4% of the students perceive organized

retailing not at all good. 70% of the housewives perceive traditional retailing to be better

than organized retailing. Thus, it can be interpreted that except the housewives respondents

from other occupations have positive perception about modern retailing.

Income Source-Perception about Organized Retailing


154

Table-4.2.13

SOURCE OF INCOME * CUSTOMER PERCEPTION Cross tabulation

CUSTOMER PERCEPTION

Total

Not At All

Good

Equally

Good Better

SOURCE OF

INCOME

No Income Source 0 2 0 2

Single 103 130 106 339

Double 20 38 43 101

Total 123 170 149 442

Findings:

The above findings reveal that 70% of the single earning families and 80% of the double

income families perceive organized retailing either better than or as good as traditional

retailing. Only 30% of single income and 20% of double income families perceive it to be

not at all good. Thus, it can be interpreted that both single income and double income

families have a positive perception about the new format of retailing in Rajasthan.

Education-Perception about Organized Retailing

Table-4.2.14

EDUCATION * CUSTOMER PERCEPTION Cross tabulation

CUSTOMER PERCEPTION

Total

Not At All Good Equally Good Better

EDUCATION Intermediate 31 6 9 46

Graduate 73 73 34 180

Post Graduate 19 77 68 164

Professional 0 14 38 52

Total 123 170 149 442


155

Findings:

The above table shows that 33% of the inter qualified respondents, 59% of the graduates,

88% of the post graduates and 100% of the professionally qualified respondents believe

that organized retailing is either better than or as good as traditional retailing. Thus, it can

be interpreted that higher the qualification positive is the perception about organized

retailing.

Marital Status-Perception about Organized Retailing

Table-4.2.15

MARITAL STATUS * CUSTOMER PERCEPTION Cross tabulation

Count

CUSTOMER PERCEPTION

Total

Not At All

Good

Equally

Good Better

MARITAL

STATUS

Single 18 41 49 108

Married 25 47 22 94

Married With

Children 80 82 78 240

Total 123 170 149 442

Findings:

83% of the single status, 73% of the married and 67% of the ‘married with children’ status

respondents perceive organized retailing to be better than or equally good as traditional

retailing.


156

Family Status-Perception about Organized Retailing

Table-4.2.16

FAMILY STATUS * CUSTOMER PERCEPTION Cross tabulation

Count

CUSTOMER PERCEPTION

Total

NOT AT ALL

GOOD

EQUALLY

GOOD BETTER

FAMILY

STATUS

NUCLEAR 85 115 110 310

JOINT 38 55 39 132

Total 123 170 149 442

Findings:

The above findings show that 73% of the nuclear families and 71% of the joint families

perceive organized retailing either better than or equally good as traditional retailing. Thus,

it can be interpreted that majority of the respondents from both the family status have

positive perception about organized retailing.

Income Group-Perception about Organized Retailing

Table-4.2.17

INCOME GROUP * CUSTOMER PERCEPTION Cross tabulation

Count

CUSTOMER PERCEPTION

Total

NOT AT ALL

GOOD

EQUALLY

GOOD BETTER

INCOME GROUP Rs. 0-20,000 65 31 15 111

Rs. 21,000-40,000 39 98 72 209

Rs.41,000-60,000 18 36 51 105

>Rs.60,000 1 5 11 17

Total 123 170 149 442


157

Findings:

The above cross analysis between income group and perception about organized retailing

reveals that 81% of the respondents from income group Rs. 21,000- Rs. 40,000, 83% from

income group Rs.41, 000-Rs.60, 000 and 94% from income above Rs. 60,000 perceive that

organized retailing is either better than or equally good as traditional retailing. On the other

side majority of the respondents (59%) having income less than Rs. 20,000 per month

believes that organized retailing is not at all good. Thus, it can be interpreted that higher the

income level positive is the perception about organized retailing.


158

4.3 BUSINESS MODEL- FORMULATING RETAIL STRATEGY

On the basis of the findings of the research a decision making model for the retailers has

been developed so as to help them in decision making, developing and implementing the

retail strategies. (Fig. 4.3.1).

The model has been developed on the following assumptions:

The retailers understand the functional aspects of the three factors emerged in the

findings (depicted in Fig 4.3.1) that affect the consumers’ perception and then

ultimately preferences.

Customers have functional literacy to understand the value of customer service

provided by the retailers.

Demand and supply conditions of the market remain constant at given point of time

or it can be said that the retailer is able to fulfill the entire demand of the customer

at a given point of time.

Fig. 4.3.1: Model for formulating retail strategy

Customer service and

Value for money

Attractive overall

Visual Appeal

Customer

Perception

Customers’ general and

status need satisfaction

Customer

Preference

Retail

Strategy


159

Model Description

The model in fig. 4.3.1 explains the how a retailer can determine the retail strategy

effectively by understanding the different factors that affects the customer’s perception.

Also, it has been revealed by the findings of the study that customer preference is strongly

dependent on the customer’s perception about organized retailing (table 4.27 pg. ….).

Thus, a retailer by understanding these factors can formulate a retail strategy that complies

with the perception of the consumer and he prefers a specific store.

The above mentioned three factors (in Fig 4.3.1) namely:

1. Customer service and value for money- Six statements namely Sales promotion

schemes, Whole family entertainment, Multiple brands under one roof helps

comparison, Good parking facilities, Caters to the need of all income groups,

Excellent customer service were loaded significantly on this factor. Thus, it is

evident that customer service and value for money is very much important for the

shoppers in order to perceive good about organized retailing as well as its

preference.

2. Attractive overall Visual Appeal- Two variables namely ‘Attractive visual

merchandising’ and ‘Good ambience’ were loaded on this factor. Thus, it can be

said that consumers perceive this factor as an important one while considering

organized retail outlets or shopping malls for their day to day shopping.

3. Customers’ general and status need satisfaction- Three variables namely ‘One

stop shopping’, ‘Wide merchandise and assortments’, and ‘Status symbol’ were

loaded on this factor. Thus, it can be said that consumers of Rajasthan looks for a

wider assortment of merchandise at one place. Also, he perceives shopping from

organized retail outlet or a shopping mall as a status symbol.

The Model explains how a retailer can use these retail store attributes to understand

consumer’s perception and preference. These three store attributes should be treated as

‘one success factor’ for a retailer i.e. these factors are complimentary to one another and

should be taken as one unit to understand the shopper’s perception and deliver the best

products and services to the ultimate shopper.


160

Thus, on the basis of the findings of the research (refer table 4.22) it can be concluded that

the above mentioned three factors are the major factors that affect the customer’s

perception about organized retailing and he prefers a particular retail outlet. A retailer can

thus, easily assess the needs and expectations of customers according to the consumer’s

perception and preferences and put forth a retail strategy that suits to the customer and

fulfills the retailer’s objectives

Retail Strategy Formulation

Retail strategy is a statement identifying (1) the retailer’s target market, (2) the format the

retailer plans to use to satisfy the target market’s needs, and (3) the bases upon which the

retailers plan to build a sustainable competitive advantage. Thus a retail strategy can be

defined as a clear and definite plan that the retailer outlines to tap the market and

build a relationship with the consumers.

The business model developed above (fig.4.3.1) can be used as an important tool to

develop and implement a retail strategy for the modern retailers. Traditional retailers can

also use this model for their strategy making. The applicability of the said model can be

understood by the below mentioned example.

The Model exemplification-

Consumer today is undisputedly a ‘King’ and the marketing concept endorses the same.

Sales is based on the AIDA concept and retailing is nothing but selling the goods or

services to the ultimate consumer. Thus, retail marketing basically is understanding the

consumer’s behavior and thus offering the right set of products or services in an

environment which attracts the attention, arouses interest, creates desire and finally

motivates the shopper or consumer for action (of buying). Consumer today has become a

smart shopper; also, the rising income levels and higher youth population, the shopping

styles and patterns have changed substantially.

Today’s shopper wants quality, ease of shopping, entertainment, huge variety, excellent

customer service, attractive shopping environment, best value for his money and a lot


161

more. Suppose a customer comes down with his spouse and two kids in a hypermarket, he

desires of a quality trouser for himself, a nice sari for his wife, some toys and stationeries

for his kids, some grocery for daily use and something for the entertainment also. A retailer

may thus, by using this model as a base may understand the psychology of the shopper, his

perception about the organized retailing and can create a shopping environment that

develops a positive perception in the mind of the consumer.

The retailer can design a retail strategy where in he can work on the customer service

and convenience aspects of the retailing. He can have a well trained sales and operation

staff at his outlet to service the customer in a better way. He can design his store layout in

a manner that ensures comfort and ease in shopping to the shopper. The retailer can use this

model in framing the pricing strategy of his retail outlet as the model explains the

importance of value of money for the customer. A retailer can thus, develop a pricing

strategy that makes sure that the shopper gets the best value for his money and he

(shopper) also endorses this. As the model explains that visual aspects of a retail outlet

affect the customer perception positively, the retailer could plan a visual merchandising

strategy or in- store and window display in an effective manner. A retailer can thus design a

fascinating shopping environment for the customer giving him a feel of being treated as

special.

The above discussed customer is looking some or the other things for each of his family

member. The customer desires that he gets everything under one roof. Thus, the retailer

should chalk out a strategy for merchandising and assortments of products in his

retail store by:

1. Keeping a database of the requirements of a shopper, even if the retailer fails to

close sales with the prospective shopper. This can be done by getting a short

questionnaire filled by the shopper which clearly brings out his needs (not fulfilled

by a retailer)


162

2. Make customer feel desirous of visiting the particular retailer again, even if he fails

to shop at first instance.

3. Customer should be convinced that his status needs are duly cared for by a retailer

and there is no other retailer who can do it more effectively.

Thus, in this case the model helps a retailer in designing overall retail strategy relating to

store operations, merchandise, store layout, retail pricing and promotions, displays and

overall ambience or environment of the retail settings.

Exceptions to the model -

1. The model does not hold true for small retailers (who are not able to assess the

needs of customers on regular basis or who do not have the large number of

required resources.). Although, it is applicable to big traditional retailers who

can afford to spend resources on developing and implementing a good retail

strategy.

2. The model is not applicable for retailers providing homogeneous product (like

agricultural seeds, fruit juices, etc.) to heterogeneous consumers. The model

applies in situations where the retailer is able to segment the consumer market

properly, understands the needs and expectations of the consumer and has an

understanding of the behavioral aspects of the shopper.

3. The model does not hold true for those retailers who are not able to understand

the psychology of consumers; does not care for the emotions of the consumers

as a purchasing power.


163

4.4 FINDINGS- JAIPUR


Table-4.4.1




Organized Retail

Outlet/ Shopping Mall 41 34.2 34.2 50.8

Both 59 49.2 49.2 100.0

Total 120 100.0 100.0

Fig. 4.4.1

Findings:

The table reveals that 17% of the total 120 respondents in Jaipur still shop only from

traditional outlets and whereas 34% of the respondents shop only from Organized retail

outlet or a shopping mall. Majority of the respondents i.e. 49% use both traditional as well

as modern form of retailing as their shopping preferences. Thus, it can be said that

shopping trend in Jaipur is shifting towards modern form as 83% of the people prefer

modern form of retailing either alone or in combination with a traditional retail outlet.


164

Q: 8 What factors stop you to shop from an organized retail outlet?

Table-4.4.2: Factors Stopping to Visit an Organized Retail Outlet

FACTORS SCORE



High Price 355



Unapproachable 195


Self service 172

Score of the factors stopping to visit an

Organized Retail Outlet

253

172

355

175266

195

268

172

Promotes Impulse

BuyingLow Quality

ProductsHigh Price

Negative Store

ImageNo credit facility

Unapproachable

Loyalty to the

traditional outletSelf service

Fig. 4.4.2

Findings:




given the maximum score of 355 which is followed by ‘Loyalty to the traditional outlet’,

‘no credit facility’ and ‘Promotes Impulse Buying’ are the other major factors that affects

the respondents negatively when it come to shop from a modern retail outlet. Thus, it can

be interpreted that shoppers of Jaipur believe that organized retailers are very costly, they

charge high price as compared to the traditional retailers. They are loyal towards their

traditional outlets from where they have been shopping from years. No credit facility

available with the modern format is also one important factor stopping them to shop from

it. Also, they try to limit their expenditure on shopping trips i.e. they mostly go for a

planned shopping.


165


Table-4.4.3

Fig. 4.4.3

Findings:

The above table reveals that 24% of the total respondents of Jaipur perceive that organized

retailing is not at all good, whereas 31% people say it is as good as traditional retailing.

45% of the respondents perceive that organized retailing is better than the traditional form

of retailing. Thus, it can be interpreted that organized retailing is favorably perceived to

traditional form of retailing in Jaipur.



Cumulative

Percent

Valid NOT AT ALL

GOOD 29 24.2 24.2 24.2

EQUALLY GOOD 37 30.8 30.8 55.0

BETTER 54 45.0 45.0 100.0

Total 120 100.0 100.0


166

Q: 3 and Q: 9 (Annexure-1) - HYPOTHESIS TESTING



Chi Square analysis

Table-4.4.4: Cross tabs


Cases

Valid Missing Total




about Organized

retailing

120 100.0% 0 .0% 120 100.0%

Table-4.4.5


Traditional form Cross- tabulation

Count

CUSTOMER PERCEPTION

Total

Not At All

Good

Equally

Good Better

CUSTOMER

PREFERENCE


Organized Retail

Outlet/ Shopping

Mall

0 0 41 41

Both 9 37 13 59

Total 29 37 54 120


167

Table-4.4.6: Chi-Square Tests

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)





a. 1 cells (11.1%) have expected count less than 5. The minimum expected count

is 4.83.







From the output table 4.4.6, the Chi-square test reads a significance level (p-value) of .000

at 95 per cent confidence level. The lower the significance value, the less likely it is that the

two variables are independent (unrelated). In this case the significance value is .000, which




retailing in Jaipur City is dependent on customer perception.


been used. The value of Cramer’s V can be seen in table-


168

Cramer’s V

Table-4.4.7

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi 1.085 .000



Findings – Cramer’s V



degree of association. From the above analysis (table-4.4.7) value for V is 0.767 which is

very high. Thus, from this it can be interpreted that the two variables have higher degree of

association or dependency. Thus, it can be said that the customer preference in Jaipur City

is strongly dependent on their perception about organized retailing


169


Table-4.4.8



Cumulative

Percent

Valid YES 65 54.2 54.2 54.2

NO 55 45.8 45.8 100.0

Total 120 100.0 100.0

Fig. 4.4.4

Findings:

The above table shows that 54% of the respondents from Jaipur are satisfied with the


can be interpreted that organized retailing has a lot of scope in Jaipur city as there as many

people who are not satisfied with the traditional form of retailing.


170


Table-4.4.9



Valid Yes 53 44.2 44.2 44.2

No 65 54.2 54.2 98.3

Already Shifted 2 1.7 1.7 100.0

Total 120 100.0 100.0

Fig. 4.4.5

Findings:



dissatisfied customers can be the readymade market for the new form of retailers. 2% of the

respondents have already shifted to organized retailing in Jaipur.


171

Q: 14 Are you satisfied with the Organized retailing?

Table-4.4.10

Are you satisfied with the Organized retailing?


Cumulative

Percent

Valid YES 93 77.5 77.5 77.5

NO 27 22.5 22.5 100.0

Total 120 100.0 100.0

Fig. 4.4.6

Findings:

The above table reveals that 78% of the respondents from Jaipur are satisfied with the




that they do not lose their share as well as they can retain and grow their customer base. On

the other side majority of the respondents are satisfied with the new form of retailing,

which is a good sign for the retailers of Jaipur city.


172


Table-4.4.11



Cumulative

Percent

Valid YES 25 20.8 20.8 20.8

NO 93 77.5 77.5 98.3

Already shifted 2 1.7 1.7 100.0

Total 120 100.0 100.0

Fig.4.4.7

Findings:


organized retailing want to shift back to the traditional retailing and 1% of them have

already been shifted. This is an alarming situation for the modern retailers. Retailers need

to rethink and plan their strategy accordingly to retain their customer base and also they

should try to delight their satisfied customers.


173


Table-4.4.12



Cumulative

Percent

Valid YES 107 89.2 89.2 89.2

NO 13 10.8 10.8 100.0

Total 120 100.0 100.0

Fig. 4.4.8

Findings:

89% of the respondents of Jaipur think that organized retailing is successful in their

city/state where as 11% of them feel that it is still not successful. Thus, majority of the

respondents have a positive perception about the modern form of retailing.


174


Table-4.4.13

How many Organized retail outlets have come up in your city in the last one

year?


Valid 0-2 3 2.5 2.5 2.5

3-5 20 16.7 16.7 19.2

6-8 35 29.2 29.2 48.3

Above 8 33 27.5 27.5 75.8

Don't know 29 24.2 24.2 100.0

Total 120 100.0 100.0

Fig. 4.4.9

Findings:

17% of the respondents of Jaipur say that 3-5 new organized retail outlets have come up in

the last one year in their city. 29% say 6-8 outlets and 28% say more than 8 outlets have

come up in their city. 24% of the respondents are not aware of the new modern outlets in

their city.


175

Q: 18 How many Shopping Malls have come up in your city in the last one year?

Table-4.4.14



Valid 1 30 25.0 25.0 25.0

2 26 21.7 21.7 46.7

3 22 18.3 18.3 65.0

Don't Know 42 35.0 35.0 100.0

Total 120 100.0 100.0

Fig. 4.4.10

Findings:

When asked about the no. of Shopping malls opened in their city in last one year, 25%

respondents said 1 mall, 22% said 2 and 18% said 3. 35% of the respondents were not

aware about the new mall opened, if any, in their city in the last one year. These figures

reveal that the speed of growth of organized retail in the Jaipur is very good. Quite good

numbers of malls are coming up in Jaipur.


176


Table-4.4.15



Valid 0-2 29 24.2 24.2 24.2

3-5 22 18.3 18.3 42.5

6-8 6 5.0 5.0 47.5

Above 8 1 .8 .8 48.3

Don't Know 62 51.7 51.7 100.0

Total 120 100.0 100.0

Fig. 4.4.11

Findings:

When asked about the number of organized retail outlets closed in their city in last one

year, 24% respondents said 0-2 outlets, 18% said 3-5 and 5% said 6-8 outlets and 1% said

more than 8 outlets have closed in the last one year. 52% of the respondents had no idea

about the modern outlets closed in their city in the last one year. These figures reveal that

some, if not many outlets are still not successful in the Jaipur city.


177

4.5 FINDINGS - AJMER

Q: 3 (Annexure 1)

Table-4.5.1





Both 63 61.8 61.8 100.0

Total 102 100.0 100.0

Fig. 4.5.1

Findings:

The table reveals that 35% of the total 102 respondents in Ajmer still shop only from

traditional outlets and whereas only 3% of the respondents shop from Organized retail

outlet or a shopping mall. Majority of the respondents i.e. 62% use both traditional as well

as modern form of retailing as their shopping preferences. Thus, it can be said that

shopping trend in Ajmer is more of traditional as people are still not hundred percent

accepting modern formats alone as their shopping destinations. They prefer more of a

combination of the two store types.


178

Q: 8 Factors Stopping to Visit an Organized Retail Outlet?


FACTORS SCORE



High Price 314



Unapproachable 208


Self service 112



297

138

314143146

208

270112

Promotes Impulse

BuyingLow Quality Products

High Price

Negative Store Image

No credit facility

Unapproachable

Loyalty to the


Fig. 4.5.2

Findings:




given the maximum score of 314 which is followed by ‘Promotes Impulse Buying’ and

‘Loyalty to the traditional outlet’. Thus, these three are the other major factors that affect

the respondents of Ajmer negatively when it comes to shop from a modern retail outlet.

Thus, it can be interpreted that shoppers of Ajmer believe that organized retailers are very

costly, they charge high price as compared to the traditional retailers. They try to limit their

expenditure on shopping trips i.e. they mostly go for a planned shopping and they do not

want to exceed their shopping budget. They are loyal towards their traditional outlets from

where they have been shopping from years.


179


Table-4.5.3


Frequency Percent

Valid

Percent

Cumulative

Percent


Equally Good 35 34.3 34.3 74.5

Better 26 25.5 25.5 100.0

Total 102 100.0 100.0

Fig. 4.5.3

Findings:

The above table reveals that 40% of the total respondents of Ajmer perceive that organized

retailing is not at all good, whereas 34% people say it is as good as traditional retailing.

26% of the respondents perceive that organized retailing is better than the traditional form

of retailing. Thus, it can be interpreted that organized retailing is having a mixed perception

in Ajmer city. Most of the people are still not favoring it which is an alarming situation for

the modern retailers.


180




Chi Square analysis

Cross tabs

Table-4.5.4


Cases

Valid Missing Total




about Organized

retailing over

Traditional form

102 100.0% 0 .0% 102 100.0%

Table-4.5.5

Where do you prefer to shop from * Perception about Organized retailing over Traditional form

Cross tabulation

Count

CUSTOMER PERCEPTION

Total

NOT AT ALL

GOOD

EQUALLY

GOOD BETTER

CUSTOMER

PREFERENCE

TRADITIONAL OUTLET 36 0 0 36

ORGANIZED RETAIL

OUTLET/ SHOPPING

MALL

0 0 3 3

BOTH 5 35 23 63

Total 41 35 26 102


181

Table-4.5.6:Chi-Square Test

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 89.925a 4 .000





is .76.







From the output table-4.5.6, the Chi-square test reads a significance level (p-value) of .000

at 95 per cent confidence level. The lower the significance value, the less likely it is that the

two variables are independent (unrelated). In this case the significance value is .000, which




retailing in Ajmer City is dependent on customer perception.




182

Cramer’s V

Table-4.5.7

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .939 .000



Interpretation – Cramer’s V





association or dependency. Thus, it can be said that the customer preference in Ajmer City

is strongly dependent on their perception about organized retailing


183


Table-4.5.8

Are you satisfied with the traditional retailing


Valid YES 74 72.5 72.5 72.5

NO 28 27.5 27.5 100.0

Total 102 100.0 100.0

Fig. 4.5.4

Findings:

The above findings show that 73% of the respondents from Ajmer are satisfied with the


can be interpreted that organized retailing has a lot of scope in Ajmer city as there are many

people who are not satisfied with the traditional form of retailing. Also, still 73% of the

unorganized retail sector of Ajmer is untapped which is again an opportunity for the

modern retailers.


184


Table-4.5.9



Cumulative

Percent

Valid YES 28 27.5 27.5 27.5

NO 74 72.5 72.5 100.0

Total 102 100.0 100.0

Fig. 4.5.5

Findings:



dissatisfied customers can be the readymade market for the new form of retailers.


185


Table-4.5.10



Cumulative

Percent

Valid YES 61 59.8 59.8 59.8

NO 41 40.2 40.2 100.0

Total 102 100.0 100.0

Fig. 4.5.6

Findings:

The above table reveals that 60% of the respondents from Ajmer are satisfied with the






which is a good sign for the retailers of Ajmer city.


186


Table-4.5.11


Frequency Percent Valid Percent Cumulative Percent

Valid YES 41 40.2 40.2 40.2

NO 61 59.8 59.8 100.0

Total 102 100.0 100.0

Fig. 4.5.7

Findings:


organized retailing want to shift back to the traditional retailing. This is an alarming

situation for the modern retailers. Retailers need to rethink and plan their strategy

accordingly to retain their customer base and also they should try to delight their satisfied

customers.


187


Table-4.5.12



Cumulative

Percent

Valid YES 39 38.2 38.2 38.2

NO 63 61.8 61.8 100.0

Total 102 100.0 100.0

Fig. 4.5.8

Findings:

Only 38% of the respondents of Ajmer think that organized retailing is successful in their

city, where as majority of the Ajmer people i.e. 62% of them feel that it is still not

successful. Thus, majority of the respondents have a negative perception about the modern

form of retailing.


188


Table-4.5.13

How many Organized retail outlets have come up in your city in the last one year?


Cumulative

Percent

Valid 0-2 11 10.8 10.8 10.8

3-5 39 38.2 38.2 49.0

6-8 13 12.7 12.7 61.8

Above 8 9 8.8 8.8 70.6

Don't Know 30 29.4 29.4 100.0

Total 102 100.0 100.0

Fig. 4.5.9

Findings:

11% of the respondents of Ajmer say that 0-2 new organized retail outlets have come up in

the last one year in their city. 38% say 3-5 outlets, 13% say 6-8 outlets and 9% say more

than 8 outlets have come up in their city. 29% of the respondents are not aware of the

number of new modern outlets opened in their city in last one year.


189


Table-4.5.14



Cumulative

Percent

Valid 0 53 52.0 52.0 52.0

1 28 27.5 27.5 79.4

Don't Know 21 20.6 20.6 100.0

Total 102 100.0 100.0

Fig. 4.5.10

Findings:

When asked about the number of Shopping malls opened in their city in last one year, 52%

respondents said no mall is opened in Ajmer, 28% said 1 and 20% of the respondents were

not aware about the new mall opened, if any, in their city in the last one year. These figures

reveal that the speed of growth of organized retail in the Ajmer is very slow. No shopping

mall has come up in Ajmer.


190


Table-4.5.15



Cumulative

Percent

Valid 0-2 54 52.9 52.9 52.9

3-5 1 1.0 1.0 53.9

Above 8 1 1.0 1.0 54.9

Don't Know 46 45.1 45.1 100.0

Total 102 100.0 100.0

Fig. 4.5.11

Findings:


year, 53% respondents said 0-2 outlets, 1% said 3-5 and 1% said more than 8 outlets have

closed in the last one year. 45% of the respondents had no idea about the modern outlets

closed in their city in the last one year. These figures reveal that some, if not many outlets

are still not successful in the Ajmer city.


191

4.6 FINDINGS - JODHPUR

Q: 3 (Annexure 1)

Table-4.6.1

Where do you prefer to shop from



Both 76 67.3 67.3 100.0

Total 113 100.0 100.0

Fig. 4.6.1

Findings:

The table reveals that 33% of the total 113 respondents in Jodhpur still shop only from

traditional outlets. Majority of the respondents i.e. 67% use both traditional as well as

modern form of retailing as their shopping preferences. No respondent prefer only modern

retailing for their entire shopping which is a point of great concern for the retailers of

Jodhpur city. Thus, it can be said that people in Jodhpur are still not that convinced with the

modern formats of retailing.


192

Q: 8 Factors Stopping to Visit an Organized Retail Outlet


FACTORS SCORE



High Price 401



Unapproachable 212


Self service 183



228

203

401

155372

212

256183

Promotes Impulse

BuyingLow Quality

ProductsHigh Price

Negative Store


Unapproachable

Loyalty to the


Fig. 4.6.2

Findings:




given the maximum score of 401 which is followed by ‘no credit facility’ and ‘Loyalty to

the traditional outlet’. These three are the major factors affect the respondents negatively

when it come to shop from a modern retail outlet. Thus, it can be interpreted that shoppers

of Jodhpur believe that organized retailers are very costly, they charge high price as

compared to the traditional retailers. No credit facility available with the modern format is

also one important factor stopping them to shop from it. Also, people of Jodhpur are loyal

towards their traditional outlets from where they have been shopping from years.


193

Q:9 How do you perceive Organized Retailing over Traditional form of Retailing?

Table-4.6.3




Equally Good 47 41.6 41.6 76.1

Better 27 23.9 23.9 100.0

Total 113 100.0 100.0

Fig. 4.6.3

Findings:

The above table reveals that 34% of the total respondents of Jodhpur perceive that

organized retailing is not at all good, whereas 42% people say it is as good as traditional

retailing. Only 24% of the respondents perceive that organized retailing is better than the

traditional form of retailing. Thus, it can be interpreted that organized retailing is in a

nascent stage in Jodhpur. A lot of people in Jodhpur are still not convinced with the modern

form of retailing.


194




Cross tabs

Table-4.6.4-Chi Square analysis


Cases

Valid Missing Total




about Organized

retailing over Traditional

form

113 100.0% 0 .0% 113 100.0%

Table-4.6.5



Count

Perception about Organized retailing

over Traditional form

Total

NOT AT

ALL GOOD

EQUALLY

GOOD BETTER

Where do you prefer

to shop from

TRADITIONAL

OUTLET 37 0 0 37

BOTH 2 47 27 76

Total 39 47 27 113


195

Table-4.6.6:Chi-Square Test

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)





a. 0 cells (.0%) have expected count less than 5. The minimum expected

count is 8.84.







From the output tables, the Chi-square test reads a significance level (p-value) of .000 at 95






retailing in Jodhpur City is dependent on customer perception




196

Cramer’s V

Table-4.6.7

Symmetric Measures

Value Approx. Sig.







degree of association. From the above analysis (table-) value for V is 0.961 which is very

high. Thus, from this it can be interpreted that the two variables have higher degree of

association or dependency. Thus, it can be said that the customer preference in Jodhpur

City is very strongly dependent on their perception about organized retailing


197


Table-4.6.8

Are you satisfied with the traditional retailing


Cumulative

Percent

Valid YES 111 98.2 98.2 98.2

NO 2 1.8 1.8 100.0

Total 113 100.0 100.0

Fig. 4.6.4

Findings:

The above findings show that 98% of the respondents from Jodhpur are satisfied with the

traditional form of retailing where as only 2% of them are not satisfied. From these

findings it can be interpreted that organized retailing has a lot of scope in Jodhpur city as

majority of the market is still unorganized.


198


Table-4.6.9

Would you like to shift from traditional retailing to organized retailing

Frequency Percent Valid Percent Cum.Percent

Valid YES 2 1.8 1.8 1.8

NO 111 98.2 98.2 100.0

Total 113 100.0 100.0

Fig. 4.6.5

Findings:

Only 2% of the respondents who are not satisfied with the traditional retailing want to shift

to the new form of retailing. 98% of the respondents shopping from traditional retailers are

satisfied with them and they would not like to shift to organized retailing. Thus, it can be

interpreted that modern retailers in Jodhpur have to give their customers a delightful

experience so that people start liking modern outlets and move towards them for their daily

needs.


199


Table-4.6.10

Are you satisfied with the Organized retailing


Valid YES 74 65.5 65.5 65.5

NO 39 34.5 34.5 100.0

Total 113 100.0 100.0

Fig. 4.6.6

Findings:

The above table reveals that 66% of the respondents from Jodhpur are satisfied with the






which is a good sign for the retailers of Jodhpur city.


200


Table-4.6.11

Would you like to shift from Organized to traditional Retailing


Valid YES 39 34.5 34.5 34.5

NO 74 65.5 65.5 100.0

Total 113 100.0 100.0

Fig. 4.6.7

Findings:


organized retailing want to shift back to the traditional retailing. This is an alarming

situation for the modern retailers. Retailers need to rethink and plan their strategy


customers.


201


Table-4.6.12



Cumulative

Percent

Valid YES 76 67.3 67.3 67.3

NO 37 32.7 32.7 100.0

Total 113 100.0 100.0

Fig. 4.6.8

Findings:

67% of the respondents of Jodhpur think that organized retailing is successful in their city.

Where as 33% of them feel that it is still not successful. Thus, majority of the respondents

have a positive perception about the modern form of retailing.


202


Table-4.6.13



Valid 0-2 11 9.7 9.7 9.7

3-5 56 49.6 49.6 59.3

6-8 18 15.9 15.9 75.2

ABOVE 8 8 7.1 7.1 82.3

DON'T KNOW 20 17.7 17.7 100.0

Total 113 100.0 100.0

Fig. 4.6.9

Findings:

10% of the respondents of Jodhpur say that 3-5 new organized retail outlets have come up

in the last one year in their city, 50% of them say that 3-5 new organized retail outlets, 16%

say 6-8 outlets and 7% say more than 8 outlets have come up in their city in last one year.

18% of the respondents are not aware of the new modern outlets in their city.


203


Table-4.6.14



Valid 0 31 27.4 27.4 27.4

1 62 54.9 54.9 82.3

Don't Know 20 17.7 17.7 100.0

Total 113 100.0 100.0

Fig. 4.6.10

Findings:

When asked about the number of Shopping malls opened in their city in last one year, 55%

respondents said 1 mall and 27% said no mall has opened in Jodhpur in last one year. 18%

of the respondents were not aware about the new mall opened, if any, in their city in the

last one year. These figures reveal that the speed of growth of organized retail in the

Jodhpur is very slow.


204


Table-4.6.15

No. of Organized retail outlets have closed in your city in the last one year?


Valid 0-2 33 29.2 29.2 29.2

3-5 52 46.0 46.0 75.2

DON'T KNOW 28 24.8 24.8 100.0

Total 113 100.0 100.0

Fig. 4.6.11

Findings:


year, 29% respondents said 0-2 outlets, 46% said 3-5 and 25% of the respondents had no

idea about the modern outlets closed in their city in the last one year. These figures reveal

that some, if not many outlets are still not successful in the Jodhpur city.


205

4.7 FINDINGS - BIKANER


Table-4.7.1





Both 71 66.4 66.4 100.0

Total 107 100.0 100.0

Fig. 4.7.1

Findings:

The table reveals that 19% of the total 107 respondents in Bikaner shop only from

traditional outlets and whereas 15% of the respondents shop from Organized retail outlet or

a shopping mall. Majority of the respondents i.e. 66% use both traditional as well as

modern form of retailing as their shopping preferences. Thus, it can be said that shopping

trend in Bikaner is shifting towards organized retailing. People prefer shopping from an

organized retail outlet either alone or in combination with a traditional outlet, which is a

good sign for the modern retailers in Bikaner.


206

Q:8 (Annexure 1)


FACTORS SCORE



High Price 321



Unapproachable 154


Self service 127



250

140

321

155212

154

278

127

Promotes

Impulse BuyingLow Quality

ProductsHigh Price

Negative Store


Unapproachable

Loyalty to the


Fig. 4.7.2

Findings:




given the maximum score of 321 which is followed by ‘Loyalty to the traditional outlet’

and ‘Promotes Impulse Buying’ Thus, it can be interpreted that shoppers of Bikaner believe

that organized retailers are very costly, they charge high price as compared to the

traditional retailers. They are loyal towards their traditional outlets from where they have

been shopping from years. Also, they try to limit their expenditure on shopping trips i.e.

they mostly go for a planned shopping and they do not prefer to go beyond their shopping

budget.


207

Q:9 How do you perceive Organized Retailing over Traditional form of Retailing?

Table-4.7.3




Equally Good 51 47.7 47.7 60.7

Better 42 39.3 39.3 100.0

Total 107 100.0 100.0

Fig. 4.7.3

Findings:

The above table reveals that 13% of the total respondents of Bikaner perceive that

organized retailing is not at all good, whereas 48% people say it is as good as traditional

retailing. 39% of the respondents perceive that organized retailing is better than the

traditional form of retailing. Thus, it can be interpreted that organized retailing is favorably

perceived to traditional form of retailing in Bikaner.


208




Cross tabs

Table-4.7.4: Chi Square analysis


Cases

Valid Missing Total




about Organized

retailing over Traditional

form

107 100.0% 0 .0% 107 100.0%

Table-4.7.5



Count

CUSTOMER PERCEPTION

Total

Not At All

Good Equally Good Better

CUSTOMER

PREFERENCE


Organized Retail

Outlet/ Shopping Mall 0 0 16 16

BOTH 0 48 23 71

Total 14 51 42 107


209

Table-4.7.6-Chi-Square Test

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 97.817a 4 .000





is 2.09.







From the output tables, the Chi-square test reads a significance level (p-value) of .000 at 95






retailing in Bikaner City is dependent on customer perception


been used. The value of Cramer’s V can be seen in table-4.7.7


210

Cramer’s V

Table-4.7.7

Symmetric Measures

Value Approx. Sig.









association or dependency. Thus, it can be said that the customer preference in Bikaner

City is strongly dependent on their perception about organized retailing


211

Q:12 Are you satisfied with the traditional retailing?

Table-4.7.8



Cumulative

Percent

Valid YES 71 66.4 66.4 66.4

NO 36 33.6 33.6 100.0

Total 107 100.0 100.0

Fig. 4.7.4

Findings:

The above findings show that 66% of the respondents from Bikaner are satisfied with the


can be interpreted that organized retailing has a lot of scope in Bikaner city as there as

many people who are not satisfied with the traditional form of retailing.


212

Q:13 Would you like to shift from traditional retailing to organized retailing?

Table-4.7.9



Cumulative

Percent

Valid YES 36 33.6 33.6 33.6

NO 71 66.4 66.4 100.0

Total 107 100.0 100.0

Fig. 4.7.5

Findings:



dissatisfied customers can be the readymade market for the new form of retailers in

Bikaner.


213

Q:14 Are you satisfied with the Organized retailing?

Table-4.7.10



Cumulative

Percent

Valid YES 96 89.7 89.7 89.7

NO 11 10.3 10.3 100.0

Total 107 100.0 100.0

Fig. 4.7.6

Findings:

The above table reveals that 90% of the respondents from Bikaner are satisfied with the

Organized retailing where as only 10% of them are not satisfied. From these findings it can

be interpreted that majority of the people in Bikaner are satisfied with the new format of

retailing. This is a healthy sign for the new form of retailing in the city. Retailers of

Bikaner should try to satisfy the customers that are not satisfied and try to give them a

delightful shopping experience.


214


Table-4.7.11



Cumulative

Percent

Valid YES 11 10.3 10.3 10.3

NO 96 89.7 89.7 100.0

Total 107 100.0 100.0

Fig. 4.7.7

Findings:


organized retailing want to shift back to the traditional retailing. The retailers should take a

proactive action to avoid this situation. They need to rethink and plan their strategy


customers.


215

Q:16 Do you think organized retailing is successful in your city?

Table-4.7.12



Cumulative

Percent

Valid YES 61 57.0 57.0 57.0

NO 46 43.0 43.0 100.0

Total 107 100.0 100.0

Fig. 4.7.8

Findings:

57% of the respondents of Bikaner think that organized retailing is successful in their city;

where as 43% of they feel that it is still not successful. Thus, majority of the respondents

have a positive perception about the modern form of retailing.


216


Table-4.7.13


Frequency Percent Valid Percent Cumulative Percent

Valid 0-2 9 8.4 8.4 8.4

3-5 43 40.2 40.2 48.6

6-8 24 22.4 22.4 71.0

Above 8 17 15.9 15.9 86.9

Don't Know 14 13.1 13.1 100.0

Total 107 100.0 100.0

Fig. 4.7.9

Findings:

8% of the respondents of Bikaner say that 0-2 new organized retail outlets have come up in

the last one year in their city. 40% of the respondents say 3-5 new organized retail outlets,

22% say 6-8 outlets and 16% say more than 8 outlets have come up in their city. 13% of

the respondents are not aware of the new modern outlets in their city.


217


Table-4.7.14



Cumulative

Percent

Valid 0 49 45.8 45.8 45.8

1 47 43.9 43.9 89.7

DON'T KNOW 11 10.3 10.3 100.0

Total 107 100.0 100.0

Fig. 4.7.10

Findings:

When asked about the no. of Shopping malls opened in their city in last one year, 46% of

the respondents of Bikaner say no mall has been opened in last one year in the city, 44%

respondents said 1 mall, 10% of the respondents were not aware about the new mall

opened, if any, in their city in the last one year. These figures reveal that the speed of

growth of organized retail in Bikaner city is very slow.


218


Table-4.7.15

How many Organized retail outlets have closed in your city in the last one

year?


Cumulative

Percent

Valid 0-2 44 41.1 41.1 41.1

3-5 6 5.6 5.6 46.7

DON'T KNOW 57 53.3 53.3 100.0

Total 107 100.0 100.0

Fig. 4.7.11

Findings:


year, 41% respondents said 0-2 outlets, 6% said 3-5 and 53% of the respondents had no

idea about the modern outlets closed in their city in the last one year. These figures reveal

that some, if not many outlets are still not successful in the Bikaner city.


219

4.8 OTHER FINDINGS

The researcher tried to explore the open views of the respondents of Rajasthan towards

both the formats of retailing with the help of some open ended questions. These views

were obtained in order to understand the real feelings and the reasons behind the inclination

and disinclination towards these forms of retailing.

Q: 12a (Annexure 1) - Reasons for satisfaction with Traditional retailing

The research revealed that the respondents using traditional retailing feels satisfied with it

because of the following reasons:

They are loyal to the retailer from where they have been shopping from years and

the retailer is able to fulfill all their needs.

They find it low price/cheap/ economical as compared to organized retailing.

Availability of credit facility at traditional retailer which is not there with the

modern retailer.

Good relationship with the owner of the shop for many years.

Comfort level is high at traditional outlet because of mutual relations and

understanding.

Traditional retailer is easily approachable.

Get the desired product at the traditional outlet so satisfy daily needs.

Availability of unbranded products at low prices as compared to costly branded

products at the modern retail outlet.

Shoppers can’t visit malls for daily needs.

Can’t travel for long distance for day to day requirements.

Q: 12b (Annexure 1) - Reasons for dissatisfaction with Traditional retailing

The finding of the research revealed that people in Rajasthan are dissatisfied with the

traditional form of retailing because:

Lack of quality products at traditional outlets.

Parking is a big problem.

Low status associated with traditional retailing.

Non-fulfillments of every need.

Lack of variety.


220

Q: 13a (Annexure 1) - Reasons for shifting to organized retailing

The findings of the study show that the customers those who are not satisfied with the

traditional retailing want to shift to organized retailing because of the following reasons:

Shopping from an organized retailer is Status symbol.

One point shopping destination.

Availability of good brands.

Availability of promotional schemes.

Not satisfied with traditional retailing.

Good customer service.

Availability of ample parking space.

Attractive displays, fragrance, ambience etc.

Good infrastructure.

Ease of shopping.

Large variety of products and brands.

Good quality products.

Availability of latest trends, products.

Kids have a place to enjoy.

Larger shopping area attracts.

Q: 13b (Annexure 1) - Reasons for not shifting to organized retailing

The customers those who are satisfied with the traditional retailing they do not want to shift

to the modern retail outlet or a shopping mall because:

Traditional outlets are easily approachable.

High pricing of the products at organized retail outlet.

Need to spare special time for shopping from an organized retail outlet or a

shopping mall.

Shopping from modern retailer increases the shopping budget unnecessarily

because attractive displays lead to unplanned buying.

Excessive time wastage.

Cost per shopping visit increases because of non-approachability.


221

Q: 14a (Annexure 1) - Reasons for satisfaction with organized retailing

The findings of the research revealed that customers of Rajasthan are satisfied with the

organized retail outlets or shopping malls because:

Availability of Quality products

Good Ambience.

Availability of everything required, at one place.

Status symbol

Good parking facility

Branded products are available.

Various brands are available at one place.

Wide range of products.

All facilities are available for shopping.

Large shopping area.

Latest products and variety.

Products for all age groups.

Source of entertainment.

Q: 14b (Annexure 1) - Reasons for dissatisfaction with organized retailing

The study revealed that people of Rajasthan are dissatisfied with the modern form of

retailing because:

No credit facility is available in shopping from a modern retail outlet or a shopping

mall.

No relationship building between the customer and the retailer.

Less or no personal attention by the retailer.

High price disturbs the monthly shopping budget.

Can’t visit for day to day requirements and small shopping needs.

Excessive time utilization because of less POS terminals.


222

Q: 15a (Annexure 1) - Reasons for shifting to traditional retailing

The findings of the study show that the customers those who are not satisfied with the

organized retailing want to shift to traditional retailing because of the following reasons:

High pricing at organized retail outlet and shopping malls.

Availability of credit facility at traditional retailer.

Special attention by the traditional retailer.

Approachable.

Bargaining advantage at traditional retailer.

Unnecessary buying is reduced.

Availability of less price products.

Q: 15a (Annexure 1) - Reasons for not shifting to traditional retailing

The customers those who are satisfied with the modern retailing they do not want to shift to

the traditional retail outlet because of:

Good customer service at organized retail outlet.

Availability of large variety of products.

Availability of quality products at the modern retailers.

Good infrastructure and shopping facilities.

One can enjoy shopping in shopping malls.

Attractive displays help enjoy window shopping.

Shopping from a modern retail outlet is getting full value for the money.

Availability of ample parking space

Get good number of brands at one place.


223

4.9 CONCLUSIONS OF THE RESEARCH

The major conclusions of the research focus around the shopping orientation of the

shoppers of Rajasthan, comprising of four representative cities namely Jaipur, Ajmer,

Jodhpur and Bikaner. The research revealed that organized retailing in Rajasthan is

accepted well and majority of the respondents perceive it to be either better or equally good

as traditional retailing. Similar trends were observed when the individual assessment of the

four cities was done. Especially Jaipur and Bikaner were the two cities where more than

75% of respondents were in favor of the newer form of retailing. People have a favorable

inclination and perception as they like shopping from an organized retail outlet or a

shopping mall.

The study further highlights that people in Rajasthan still have a lot of liking for the

traditional retail outlets as their shopping destinations. ‘Credit facilities’, ‘bargaining

advantage’, ‘Long term association’ and the ‘store loyalty’ are the major factors that

count for the people of Rajasthan and the four cities the most to shop from a Traditional

outlet. The results of the analysis show that people of Rajasthan prefer a combination of the

two store types for satisfying their day to day requirements. This shows that they are

neither completely traditional nor they are absolutely modern when it comes to shopping.

They want to use the benefits of the both type of shopping formats.

The subjective findings also reveal that for their daily needs they may prefer a traditional

outlet but along with that they prefer a modern retail outlet for fulfilling their other needs.

The study also stresses that very small percentage of the population prefers only a modern

retailer for fulfilling all their needs, which is a point of concern as well as an opportunity

for the modern retailers in Rajasthan. Jaipur, the pink city being the state capital, people are

accepting the new form of retailing very well where as the other three cities although

accepting it in a decent manner but are still comparatively slow.


224

The positive conclusion that has been revealed from the study is that people in Rajasthan

have undoubtedly a positive perception as well as preference for organized retailing. Also,

it can be concluded that traditional retailing is deep rooted in Rajasthan as majority of

people still prefer a combination of the two store formats.

The rejection of the null hypothesis i.e. Customer preference is independent of customer

perception of organized retailing proves that in Rajasthan the preference of the customer

for an organized retail outlet or a shopping mall is clearly dependent on the customer’s

perception. This fulfills the main objective of the research under study. The high value of

Cramer’s V shows that customer preference in Rajasthan is strongly dependent on their

perception about organized retailing. Thus, it can be concluded that it is the positive

perception of the people of Rajasthan that is motivating them to prefer organized retailing

for their shopping.

The interpretations of the factor analysis revealed that that a store’s ‘Customer service

and Value for money,’ ‘Attractive overall Visual Appeal’, and ‘Customers’ general and

status need satisfaction’ are three factors that influence the shoppers of Rajasthan to prefer

an organized retailer or a shopping mall. Thus, it can be concluded that shopper of

Rajasthan looks for good customer service and value for the money he spends on the

shopping. He is very much fascinated by the visual aspects and ambience of the modern

retailers. Also, he treats shopping from a modern retailer as a status symbol.

On the basis of the findings of the research a decision making model for the retailers has

been developed (Fig. 4.3.1). The model has been developed on the assumptions that the

retailers understand the functional aspects of the three factors emerged in the finding that

affect the consumers’ perception and then ultimately preferences. The business model can

be used as an important tool to develop and implement a retail strategy for the modern

retailers. The Model explains how a retailer can use these retail store attributes to

understand consumer’s perception and preference.

These three store attributes should be treated as ‘one success factor’ for a retailer i.e. these

factors are complimentary to one another and should be taken as one unit to understand the


225

shopper’s perception and deliver the best products and services to the ultimate shopper. A

retailer can thus, easily assess the needs and expectations of customers according to the

consumer’s perception and preferences and put forth a retail strategy that suits to the

customer and fulfills the retailer’s objectives

The findings of the Spearman’s rank correlation (rho), reveal that ‘Quality’, ‘One point

Shopping for all needs’, ‘Store image’, ‘Status symbol’ and ‘Visual

merchandising/displays are the major factors that count the most for the people of

Rajasthan and the four cities covered under the study to shop from an Organized retail

outlet or a shopping mall. Where as ‘Credit facilities’, ‘bargaining advantage’, ‘Long

term association’ and the ‘store loyalty’ are the major factors that influence them the

most to shop from a Traditional outlet. From the spearman’s rank correlation it is

concluded that the shoppers of Jaipur and Jodhpur have similar preferences for shopping

where as shoppers of Ajmer and Bikaner have similar preferences.

The subjective analysis and identification of the reasons behind non preference of

organized retail outlets or shopping malls reveal that customers of Rajasthan has a lot of

expectations from the modern retailers. They want quality product but at a low price.

Customers expect good service at the modern retail outlet. They look forward to

personalized service and special attention by the retailer or the sales staff in the outlet.

Customers want that modern retailer should work on their easy exit from the outlets by

increasing the number of Point of Sales (POS) terminals or cash counters. They don’t want

to waste their time standing in queues for getting their purchase billed. The results of the

factor analysis also revealed that people expect excellent customer service, convenience

and attractive visual displays in a modern retail outlet or a shopping mall.

The findings of the study reveal that organized retailing is successful in Rajasthan as

majority of the people perceive it to be successful. This has been already tested that

customer preference is strongly dependent on customer perception about organized

retailing. Thus, people of Rajasthan prefer the new form of retailing making it successful.

This is applicable to all the four cities under study as they have shown similar results.


226

Jaipur is the leading city out of the four that shows the highest positive responses towards

modern retailing.

Mall culture is increasing steadily in Jaipur and it has the highest number of shopping malls

in Rajasthan and is among the highest in the state in terms of size and socio-economic

profile. Its gradually increasing quality of life, a booming economy and consumer market

makes it one of the hottest destinations for Retail segment. Jodhpur is another big and

growing city of Rajasthan, but it still has more of a traditional shopping environment.

People here are still more inclined towards traditional retailers. They prefer organized

retailers also but not completely. Bikaner and Ajmer people also show a trend shifting

towards the new formats of retailing but the pace is slow. Mall culture still does not exist in

these cities. There are certain traditional shopping complexes existing in these cities but the

organized retailing is limited up to the franchise stores of apparels, jewelry, consumer

durables, footwear etc. and a few supermarkets like Spencer’s, Vishal Mega Mart and Big

Bazaar etc.

The findings of these cities reveal that people are accepting the new form of retailing well

and the future prospects for this is bright. These cities have a lot of potential, also the

people have a positive perception for the modern retailing and a majority of the market is

untapped. Thus, a great opportunity lies in these cities of Rajasthan for the retail players to

broaden their arms.

Thus, it can be concluded that organized retailing in Rajasthan has a lot of scope as it has

managed to create a mark in the minds of the shoppers in this region and people have

started preferring the new retail formats substantially. Most of them hold a positive

perception about it and prefer shopping from them either completely or in combination

with the traditional retailing. This is quite evident from the findings of the research that

modern retailing has ample opportunities lying vacant in Rajasthan as the people of

different demographics have shown substantial interest in it.


227

SUMMARY OF THE CONCLUSIONS

The conclusions of the research can be summarized as below:

1. The research concludes that organized retailing in Rajasthan is accepted well and

majority of the respondents perceive it to be either better or equally good as traditional

retailing.

2. People have a favorable inclination and perception towards the modern retail formats as

they like shopping from an organized retail outlet or a shopping mall.

3. People in Rajasthan still have a lot of liking for the traditional retail outlets as their

shopping destinations. ‘Credit facilities’, ‘bargaining advantage’, ‘Long term

association’ and the ‘store loyalty’ are the major factors that count for the people of

Rajasthan and the four cities the most to shop from a Traditional outlet.

4. The research concludes that people of Rajasthan prefer a combination of both a

traditional retailer as well as a modern retailer for satisfying their day to day

requirements.

5. The research concludes that for their daily needs they may prefer a traditional outlet but

along with that they prefer a modern retail outlet for fulfilling their other needs.

6. Very small percentage of the population prefers only a modern retailer for fulfilling all

their needs. Thus, there lies a lot of opportunity for the organized retailers to tap this

market.

7. Jaipur people are accepting the new form of retailing very well where as the acceptance

in other three cities is comparatively slow.


228

8. People in Rajasthan have undoubtedly a positive perception as well as preference for

organized retailing.

9. The rejection of the null hypothesis concludes that customer preference of organized

retailing is strongly dependent on customer perception in Rajasthan. This fulfills the

main objective of the research under study.

10. Thus, it can be concluded that it is the positive perception of the people of Rajasthan

that is motivating them to prefer organized retailing for their shopping.

11. Bikaner and Ajmer people also show a trend shifting towards the new formats of

retailing but the pace is slow.

12. The research concludes that ‘Customer service and Value for money,’ ‘Attractive

overall Visual Appeal’, and ‘Customers’ general and status need satisfaction’ are the

three factors that influence the shoppers of Rajasthan to prefer an organized retailer or

a shopping mall.

13. A business model has been developed on the basis of these three store attributes (should

be treated as ‘one success factor’). A retailer can use this model as a tool to develop

and implement a retail strategy and it can help him succeed in the competitive retail

environment.

14. The findings of the Spearman’s rank correlation (rho), conclude that ‘Quality’,

‘One point Shopping for all needs’, ‘Store image’, ‘Status symbol’ and ‘Visual

merchandising/displays are the major factors that count the most for the people of

Rajasthan and the four cities covered under the study to shop from an Organized retail

outlet or a shopping mall.


229

15. ‘Credit facilities’, ‘bargaining advantage’, ‘Long term association’ and the ‘store

loyalty’ are the major factors that influence them the most to shop from a Traditional

outlet.

16. Mall culture is increasing steadily in Jaipur and it has the highest number of shopping

malls in Rajasthan.

17. Jodhpur still has more of a traditional shopping environment. People here are still more

inclined towards traditional retailers. They use a combination of the two retailer types

for their shopping.

18. The research thus, concludes that people of Rajasthan has a lot of expectations from the

modern retailers as they look for true value for their money i.e. good quality at

reasonable price, better customer service, personal attention from the retailers or their

sales persons, more POS terminals to reduce waiting time and more approachable

location.

19. The research thus, concludes that these cities have a lot of retailing potential, also the

people have a positive perception for the modern retailing and a majority of the market

is untapped. Thus, a great opportunity lies in these cities of Rajasthan for the retail

players to broaden their arms.

20. Thus, it can be concluded that organized retailing in Rajasthan has a lot of scope as it

has managed to create a mark in the minds of the shoppers in this region and people

have started preferring the new retail formats substantially.

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CHAPTER-4 FINDINGS AND CONCLUSIONS - Shodhgangashodhganga.inflibnet.ac.in/bitstream/10603/10202/11/11... · 2015. 12. 4. · 15/9/2012 NILESH ARORA 106 Family Status Analysis Table-4.8