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Chapter – 4

RESULTS AND DISCUSSIONS

Introduction The chapter entitled results and discussion express the interpretations about various

elements. The topic is subdivided into six different sections .the analysis of these

sections is done separately. The six elements considered for the study are –

1. Analysis of the working operations of the small retailers and hypermarkets

2. Role of service elements and its impact on the various segments of the

customers

3. Role of the brand in grocery retailing and study of allied elements associated

with brand.

4. Customer‘s opinion on various parameters associated with the selection of

particular shop or retail outlet

5. The problems and challenges faced by organized and unorganized retailers

6. Hypothesis validations using various statistical tools 4.1) Analysis of Organized & Unorganized Retail Trades in

Kolhapur city The section 4.1 of the study covers various parameters related with organized and

unorganized retail trade. Further, it covers operational details of small grocery

shopkeepers and hypermarkets. The second part deals with opinion of small grocery

shopkeepers and hypermarket managers regarding changing retailing practices and

various parameters associated with it.

In order to study the working of small grocery shopkeepers, hypermarkets and

wholesalers, researcher has prepared a questionnaire for the small grocery

shopkeepers, wholesalers and hypermarkets. Various parameters are formulated

which presents the data related to the functioning of organized and unorganized

retailers. The small grocery shopkeepers, wholesalers and authorities of the

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hypermarkets are handed over the questionnaire by the researcher which includes

the parameters such as space, billing system, ambience, credit facility offered to the

customers, cost related issues and opinion of retailers about parking facility,

varieties in the small grocery shops, proximity and its significance to customers,

selling in loose, home delivery facility, discount facility offered, advertisement and

its impact on the customers, place and its advantages.

It covers the operations of wholesalers, small grocery shopkeepers and hypermarkets

in over all context of the grocery retail trade. The opinion of the small grocery

shopkeepers, wholesalers and the hypermarket managers are taken about changing

retail trade practices in terms of the system, structure and services with respect to

time. Other parameters are considered in changing retailing scenario.

Research done in case of retail trade indicates that it revolves around three

components. These components are – wholesalers, organized retail trade in the form

of hypermarkets and unorganized retail trade in the form of small grocery shops.

From the researcher‘s perspective, there are various elements of differentiation

between the wholesalers, hypermarkets and small grocery shopkeepers. Wholesalers

used to gather the revenue from small grocery shopkeepers and hypermarkets. The

hypermarkets generate the revenue from the customers. The small grocery

shopkeepers generate the business from the customers.

Small grocery shopkeeper works in various areas, nukkads and wards in the city of

Kolhapur. Small grocery shopkeeper does the business in more conventional way in

which a lot of emphasis is given on the relationship, trust and experience. The

customers and these grocery shopkeepers have a strong relationship, not even the

relationship but the strong bonding between each other. Thus, the small grocery

shopkeeper works on the basis of experience of simplicity and convenience. The ―convenient shoppingǁ is the buzzword for the customers shopping from small

grocery shopkeepers.

Small grocery shopkeepers have the place advantage where proximity for customers

matters a lot. The small grocery shopkeepers, which are situated in the colonies, are

not affected because of the emergence of hypermarkets in the city of Kolhapur. The

small grocery shopkeepers have ‗place‘ advantage than any type of retail trade. The

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small grocery shopkeeper‘s business is based upon the regular customers. The

business growth in grocery comes from existing business when existing customers

purchase more and more. At the same time, the changing taste of customers causes

to purchase more and more.

4.1.1) Organized and unorganized retailers in Kolhapur city – Features of operation of the Wholesalers, Small Grocery Shopkeepers and

Hypermarkets – Features of Small Grocery Shopkeepers – 1) Small grocery shopkeepers operate in small spaces.

2) Small grocery shopkeepers do not have the ambience, parking facility and great

merchandizing. 3) Home delivery facility, selling in loose quantity and loyal customers are major

strengths of small grocery shopkeepers. 4) Low-income group customers are the major source of revenue for small grocery

shopkeepers. 5) Small grocery shopkeepers purchase grocery from the wholesalers.

Small grocery shopkeepers taken for the study having the surface area less than 400

sq. ft. plays dominant role in grocery trading in the city of Kolhapur. The opinion of

small grocery shopkeepers are taken on the basis of impact of organized retailers on

their business, changing consumer behavior in terms of taste, belief and loyalty,

changing nature of retail trade in terms of structure, system and services etc. The

transportation mediums used for conveying the grocery from one place to another is

considered in order to analyze the working of unorganized retailers.

Unorganized retailers in Kolhapur city use to register to the two different bodies.

They are – Kirana Bhusari Sanghatana and the Vyapari Sanghatana of Kolhapur

city. Many small grocery shopkeepers are having family owned business.

- 79 - Features of Hypermarkets –

1) Hypermarkets are having space advantage, ambience, very good parking

facilities, technology driven management, better system and services.

2) Varieties, better merchandizing, supporting staff are major strength of

hypermarkets.

3) The major competitors of hypermarkets are small grocery shopkeepers.

4) Hypermarkets provide conditional home delivery facility.

5) Hypermarkets purchase grocery from local wholesalers or different states. Kolhapur has seen no. of hypermarkets opening, running for 1 or 2 years and closing

down. The chain stores like Subhiksha, More, Spinach has their outlets in the city of

Kolhapur and within no time they had to close down their operations from the city

of Kolhapur.

The hypermarkets such as Big Bazaar, Lucky Bazaar and D Mart have successfully

completed their survival phase and entered into the phase of sustenance. All these

hypermarkets have started before four years. The locally managed hypermarket,

Lucky Bazaar is doing wonderfully well since last decade. So, all these

hypermarkets are in the different of their product life cycle. And three of them are

taken for the study.

Features of Wholesalers –

1) The space for operation includes go-downs.

2) Ambience, space, relationship with customers, parking facility and home

delivery facility don‘t have the impact on the wholesalers.

3) Selling in larger quantity at cheapest possible price is major strength of

wholesalers.

4) Wholesaler‘s major customers are small grocery shopkeepers and customers

who use to purchase the grocery in bulk.

5) Wholesalers purchase grocery from different markets. The major difference between the operations of wholesalers and other two elements

i.e. hypermarkets and small grocery shopkeepers is that the grocery required by

hypermarkets like big bazaar and small grocery shopkeepers in the city use to

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purchase grocery from wholesalers. So, the wholesaler‘s focus and target is different

than other two parties. Even though the questionnaire was circulated amongst

wholesalers and then the interview was taken. The wholesalers are less concerned

about space, parking and ambience. The focus of the wholesalers is on the volume of

sales which is coming from small grocery shopkeepers and hypermarkets and

customers. The changing scenario in retail has least affected the wholesalers because

their target customers are different.

4.1.2) Data Presentation of respondents from all types of retailers – Table 4.1.1 – Table showing gender wise distribution of respondents from all

categories of retailers

SGS Keepers Hypermarket Wholesalers

authorities

Sr.

Gender

No. No. of

No. of

No. of

% % %

Respondents Respondents Respondents

1 Male 213 94.7 3 100 5 100

2 Female 12 05.3 0 0 0 0

Total 225 100 3 100 5 100

Source- Questionnaire IV – c, Questionnaire V – c, Questionnaire VI – c Graph 4.1.1 - Graph showing gender wise distribution of respondents from all

categories of respondents

Graph showing gender wise distribution of

respondents from all categories of respondents

120

94.7 % 100 % 100 %

100

80

60

40

5.3 %

20 0 % 0 %

0


Authorities

From the table and column chart, it can be interpreted that 94.7% of the respondents

from small grocery shopkeeper‘s category are males while 5.3% of the respondents

are females. The shopkeepers from the small stores category are pre-dominantly

males.

100 % of the hypermarket managers and wholesalers are male from the selected

respondents

The small grocery shops are of different types of ownerships i.e. family owned

business. In case of family owned businesses, males used to look after the business.

In some cases if the family is running more than one business then when men are

working in other business, women are playing the supportive role in the business.

The wholesaler‘s category is male dominated.

Table 4.1.2 - Table showing education wise distribution of respondents from all categories of respondents

SGS Keepers Hypermarket

Wholesalers

authorities

Sr.

Education

No. No. of

No. of

No. of

% % %


1 Under 086 38 0

0 0 0

Graduate

2 Graduate 097 43 0

0 5 100

3 Post 043 19 3

100 0 0

Graduate

10

Total 225 3 100 5 100

0

Source- Questionnaire IV – d, Questionnaire V – d, Questionnaire VI – d

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Graph 4.1.2 - Graph showing education wise distribution of respondents from all categories of respondents

Graph showing education wise distribution of respondents from all categories of respondents

120

100 % 100 %

100

80

60

38 % 43 %

40

19 %

20

0 % 0 % 0 % 0 %

0


Wholesalers

Authorities

Under Graduate

Graduate

Post Graduate

From the table it is observed that the 38% of the respondents from small grocery

shopkeeper‘s category are the undergraduates while 43% of the respondents are

graduates and 19% of the respondents are postgraduates.

The shops, which started before many years, are run and owned by undergraduates.

The shops, which are commenced in last decade or 5 years, are run by the graduates

and postgraduates.

In case of hypermarkets, 100% of the respondents are postgraduates and in case of

wholesalers, 100% of the respondents are graduates.

The shops, which are newly started, are owned by the people with higher

qualification. It is because either the new bread of shopkeepers is not willing to

serve for anybody or they are not getting the desired and deserving services.

So either as a part of starting the new venture, they are running the small businesses

or these people are compelled to run the businesses.

All the hypermarkets appoint highly qualified human resources as the managers. In

case of wholesalers, the education level is good enough to run the business.

- 83 -

Table 4.1.3 - Table showing distribution of respondents from all categories of respondents according to their status of registration


Sr. State of authorities

No. Registration No. of % No. of

% No. of %


1 Registered 225 100 3

100 5 100

2 Unregistered 0 0 0 0 0 0

Total 225 100 3 100 5 100

Source- Questionnaire IV – h, Questionnaire V – h, Questionnaire VI – h Graph 4.1.3 – Graph showing distribution of respondents from all categories of respondents according to their status of registration

Table showing distribution of respondents from all categories of respondents according to their

status of registration

120

100 % 100 % 100 %

100

80

60

40

20

0 % 0 % 0 %

0


Authorities

Registered

Unregistered

All the shops selected for the study are registered under shop act and have the

license to run the business of grocery retailing.

The wholesalers registered their shop under the ―shop actǁ. The wholesalers used to

sell the grocery goods to all other elements including retailers, hypermarkets as well

as customers.

- 84 -

Table 4.1.4 - Table showing distribution of respondents from all categories of

respondents according to their area in Square feet‟s

Sr. Area in SGS Keepers

No. Sq. ft.

No. of Respondents %

1 0 – 100 5 2.2

2 100 – 200 111 49.3

3 200 – 300 90 40

4 300 – 400 11 4.9

5 400 – 500 8 3.6

Total 225 100

Source- Questionnaire IV – i

Graph 4.1.4 - Graph showing distribution of respondents (SGS Keepers)

according to their area in sq. ft.

Pie chart showing distribution of respondents (SGS Keepers) according to their area in sq. ft.

2%

5% 4%

0 – 100

100 – 200

40% 49%

200 – 300

300 – 400

400 – 500

- 85 -

From the table, it can be interpreted that 2.2% of the respondents from small grocery

shopkeeper‘s category are having the floor area of their shops in between 0 to 100

sq. ft. The 49.3% of the respondents has floor area in between 100 to 200 sq. ft. The

40% of the respondents have the floor area is in between 200 to 300 sq. ft. The 4.9%

of the respondent falls in the category of shops having the floor area between 300 to

400 sq. ft. and 3.6% of the respondents are having their floor area in between 400 to

500 sq. ft.

All the wholesalers are having sufficient floor space which is in the range 400 to 500

sq. ft. so as to store the grocery in the respective brands.

Majority of the small grocery shopkeepers have the area in between 100 to 300 sq.

feet‘s. Very few small grocery shopkeepers are having the floor area larger than 400

sq. feet‘s. Since Wholesalers need to store the grocery of different brands in large

quantity, all are having enough space to store grocery.

Table 4.1.5 - Table showing growth of organized and unorganized retailers

Sr. No. Year No. of Organized No. of Unorganized

Retailers

Retailers

1 2000 3 209(Beginning Value)

2 2001 3 273

3 2002 3 317

4 2003 3 384

5 2004 3 453

6 2005 3 517

7 2006 4 607

8 2007 14 667

9 2008 14 704

10 2009 8 797(End Value)

- 86 -

Definition of 'Compound Annual Growth Rate - CAGR' ―The year-over-year growth rate of retail trade, over a specified period of time is

given in terms of compound annual growth rate which is calculated by taking the nth

root of the total percentage growth rate, where n is the number of years in the period

being considered.ǁ The formula for CAGR is – (Source: Financial Management by I. M. Pandey published by Vikas publication pvt.

Ltd., Delhi, 2009)

Using the above formula,

Compounded Annual Growth Rate

of Small Grocery Shops

= 14.32%

Similarly compounded annual

Growth rate of hypermarkets = 10.30 % Thus, from the graphs and above calculation, it is clear that the growth of

unorganized retail trade is uniform because of various reasons while the growth of

unorganized retailers is non-uniform.

- 87 -

Table 4.1.6 – Table showing responses of SGS keepers, hypermarket authorities and wholesalers about awareness of changing retail trade practices


Sr. authorities

Particulars

No. No. of % No. of

% No. of %


1 Aware 225 100 3 100 5 100

2 Unaware 0 0 0 0 0 0

Total 225 100 3 100 5 100

Source- Questionnaire IV – Q.1, Questionnaire V – Q.1, Questionnaire VI – Q.1

Graph 4.1.5 – Graph showing responses of SGS keepers, hypermarket

authorities and wholesalers about awareness of changing retail trade

Graph showing responses of SGS keepers, hypermarket authorities

and wholesalers about awareness of changing retail trade

120

100 % 100 % 100 %

100

80

% 60

40

20

0 % 0 % 0 %

0


authorities

Type of Retailer - >

Aware Unaware From the table; it is clearly observed that all the respondents from small grocery

shopkeeper‘s category are aware about the arrival of the hypermarkets in Kolhapur

city. So, they are aware about the changes; in the retail industry and its functioning

and operations. Small grocery shopkeepers are able to classify the parameters on

which they are feeling the change.

All the respondents from wholesalers and hypermarket authority‘s category

completely agree about the fact that retail trade is going through change.

- 88 -

Table 4.1.7 – Table showing responses of SGS keepers about change in

customer behavior in terms of taste, belief and loyalty

Sr. SGS Keepers

Particulars

No. Yes % No

%

1 Taste 171 76 54

24

2 Belief 178 79.11 47

19.89

3 Loyalty 117 52 108

48

4 More 220 97.77 5 2.22

options

Source- Questionnaire IV – Q.2

Graph 4.1.6 - Graph showing responses of SGS keepers about change in

customer‟s buying habits in terms of taste, belief and loyalty

Graph showing responses of SGS keepers about change in customer's buying habits in terms of

taste, belief and loyalty

%

120

97.77 %

100

76 % 79.11 %

80

60 52 % 48 %

40

24 % 19.89 %

20 2.22 %

0

Yes

No

Retailer's response

Taste

Belief

Loyalty

More options

From the data, it can be analyzed that the small grocery shopkeepers feel that the

retail industry is going through the change in terms of taste, beliefs, and customer‘s

loyally. 76 % of the respondents state that customer‘s tastes are changing while 24%

of the respondents state that there is no change in the test of the customer‘s. 79.11%

of the respondents state that customer‘s beliefs are changing while 19.89% of the

respondents state that customers beliefs‘ are not changing. 97.77% of the

- 89 -

respondents state that customers are having more options in terms of grocery

shopping and it is one of the changes creeping in the retail industry. 52% if the

respondents state that customer‘s loyalty towards the particular retailer is decreasing

while 48% of the respondents state that there is no change in the loyalty of the

customers.

Table 4.1.8 – Table showing responses of hypermarket authorities about change in customer preference in terms of taste, belief and loyalty

Hypermarket

Sr. Particulars Authorities

No. Yes % No

%

1 Taste 3 100 0 0

2 Belief 3 100 0 0

3 Loyalty 3 100 0 0

More options 3 100 0 0

Source- Questionnaire V – Q.2 Graph 4.1.7 – Graph showing responses of hypermarket authorities on change in


%

Graph showing responses of hypermarket authorities about change in customer's buying habits in terms of taste, belief and loyalty

120

100 % 100 % 100 % 100 % 100

80

60

40

20

0 %0 %0 %0 %

0

Yes

No

Retailer's response

Taste

Belief

Loyalty

More options

- 90 -

Thus, all the respondents from wholesalers and hypermarket authorities, completely

agree about the fact that retail industry is going through the change in terms of taste,

beliefs, and customer‘s loyally. Table 4.1.9 – Table showing responses of wholesalers about change in customer

behavior in terms of taste, belief and loyalty

Sr. Particulars

Wholesalers

No.

Yes % No

%

1 Taste 5 100 0 0

2 Belief 5 100 0 0

3 Loyalty 5 100 0 0

4 More options 5 100 0 0

Source- Questionnaire VI – Q.2 Graph 4.1.8 – Graph showing responses of wholesalers about change in


Graph showing responses of wholesalers about change in customer's buying habits in terms of

taste, belief and loyalty

%

120

100 % 100 % 100 % 100 % 100

80

60

40

20 0 % 0 % 0 % 0 %

0

Yes No

Retailer's response

Taste

Belief

Loyalty

More options

Thus, all the respondents from wholesalers and hypermarket authorities completely

agree about the fact that retail industry is going through the change in terms of taste,

beliefs, and customer‘s loyalty.

- 91 -

Table 4.1.10 – Table showing responses of SGS keepers about change in retail

trade in terms of structures, systems and services

Sr. Particulars SGS Keepers

No.

Yes % No %

1 Structures 131 58.22 94 41.78

2 Systems 151 67.11 74 32.89

3 Services 193 85.78 32 34.22

Source- Questionnaire IV – Q.3 Graph 4.1.9 – Graph showing responses of SGS keepers about change in retail


%

Graph showing responses of SGS keepers about change in retail trade in terms of structures, systems and services

100

85.78 %

80

67.11 %

60 58.22 %

41.78 %

34.22 %

40

32.89 %

20

0

Structures Systems Services

Retailer's response

Yes

No

The small grocery shopkeepers feel that the retail industry is going through the

change in terms of structure, system and services. 58.22% of the respondents state

that retail industry is going through structural change while 41.78% of the

respondents state that there is no change in the structure of the retail trade. 32.89%

of the respondents state that retail systems and its operations are changing while

67.11% of the respondents state that there is no system change. 85.78% of the

respondents state that services in retail are changing while 34.22 % of the

respondents state that there is no change in the services.

- 92 -

Table 4.1.11 – Table showing responses of hypermarket authorities about

change in retail trade in terms of structures, systems and services

Sr. Hypermarket

No. Particulars Authorities

Yes

% No %

1 Structures 3 100 0 0

2 Systems 3 100 0 0

3 Services 3 100 0 0

Source- Questionnaire V – Q.3

Graph 4.1.10 – Graph showing responses of hypermarket authorities about

change in retail trade in terms of structures, systems and services

Table 4.1.12 – Table showing responses of wholesalers about change in retail


Sr. Wholesalers

No.

Particulars

Yes

% No %

1 Structures 5 100 0 0

2 Systems 5 100 0 0

3 Services 5 100 0 0

Source- Questionnaire D – Q.3

Graph 4.1.11 – Graph showing responses of wholesalers about change in retail


%

Graph showing responses of wholesalers about change in retail trade in terms of structures, systems

and services

120

100 %

100 %

100 %

100

80

60

40

20

0 %

0 %

0 %

0

Structures

Systems Services

Retailer's response

Yes

No

All the respondents from wholesaler‘s category state that retail operations and retail services are changing. Retail industry is going through structural change, system change and change in service delivery.

- 94 -

Impact of various parameters on the retailer‟s business – Researcher has studied the operations of organized and unorganized retailers.

During the research, it was understood that certain parameters for small grocery

shops, hypermarkets and wholesalers are proved to be strengths of the grocery retail

business. Thus, following parameters and their significance for both types of retail

trades are studied using dichotomous questionnaire. These parameters are –

1. Space available with retailers and its impact

2. Billing facility used by the retailers and its importance

3. Ambience of the shop

4. Credit card facility provided by retailers

5. Credit facility available to customers

6. Cheapness of grocery products

7. Parking facility available

8. Proximity and its importance for customers

9. Relationship with customers

10. Selling the grocery in loose quantity

11. Multiple counters facility provided by retailers

12. Role of supporting staff

13. Home delivery facility provided by retailers

14. Discounts given by retailers

15. Role of advertisement

16. Advantage of place

17. Maintenance of stock

- 95 -

Data showing responses of SGS keepers, hypermarket authorities and

wholesalers about impact of various parameters (mentioned above) on retail

trade –

Table 4.1.13 – Table showing response of SGS keepers, hypermarket

authorities and wholesalers about space –

Sr. SGS Keepers Hypermarket

Wholesalers

No. authorities

Particulars

No. of % No. of

% No. of

%


1 Yes 56 24.9 3

100 2

40

2 No 169 75.1 0

0 3

60

3 Can‘t 0 0 0

0 0 0

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4a, Questionnaire V – Q.4a, Questionnaire VI – Q.4a

Graph 4.1.12 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about space

%

Graph showing response of SGS keepers, hypermarket authorities and wholesalers about space

120

100 % 100

75.1 %

80

60

60 %

40

24.9 %

40 %

20

0 %

0


authorities

Retailer's response

Yes

No

- 96 -

From the table, it can be analyzed that 24.9 % of the respondents from small grocery

shop keeper‘s category state that because of larger space only customers are

attracted towards the hypermarkets while 75.1 % of the respondents from the small

grocery shops category perceive that space is not the factor of attraction for the

customers.

From the table it can be analyzed that 40% of the respondents from wholesaler‘s

category state that they are having less space while 60% of the respondents state that

the business is not affected because of the less space they are having.

From the table researcher can analyze that larger space is not the prominent factor to

attract customers towards hypermarkets. In many cases the customers feels that the

retailers‘ layouts is clumsy.

According to all the hypermarket managers, because of larger space available in the

hypermarkets, the customers are attracted towards the hypermarket for buying of the

grocery. The ample space makes the shopping simpler and convenient. Table 4.1.14 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about billing system provided–


Sr.

authorities

Particulars

No. No. of % No. of % No. of %


1 Yes 37 16.4 3 100 0 0

2 No 188 83.6 0 0 05 100

3 Can‘t Say 0 0 0 0 0 0

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4b, Questionnaire V – Q.4b, Questionnaire VI – Q.4b

- 97 -

Graph 4.1.13 - Graph showing response of SGS keepers, hypermarket authorities and wholesalers about billing system provided

Graph showing response of SGS keepers, hypermarket authorities and wholesalers

about billing system provided

%

120

100 % 100 %

100 83.6 %

80

60

40

16.4 %

20

0 % 0 %

0


authorities

Type of Retailer

Yes No

From the table it can be analyzed that 16.4 % of the respondents state that there is an

impact of billing facility on the business while 83.6 % of the respondents from small

grocery shops owners‘ category state that the billing system does not have any

impact on the business.

All the managers of hypermarkets state that billing system is important in attracting

customers. Error free transactions and no. of counters for billing attracts customers

toward hypermarkets.

The response is asked of the wholesalers regarding the impact of computerized

billing system on their business. The 100% of the respondents states that

computerized billing system is not the major problem for wholesalers. Further they

state that computerized billing is not the factor to be considered. Wholesalers have

the computerized billing system.

Majority of small grocery shopkeepers state that billing is not important for

customers. Hypermarkets and wholesalers have billing system.

- 98 -


authorities and wholesalers about ambience in the retail stores –


Sr. authorities

Particulars

No.

No. of % No. of % No. of %


1 Yes 198 88.0 02 66.7 01 20

2 No 27 12.0 01 33.3 04 80

3 Can‘t 00 00 00 00 00 00

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4c, Questionnaire V – Q.4c, Questionnaire VI – Q.4c

Graph 4.1.14 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about ambience in the retail stores

%


about ambience in the retail stores 100

90 88 %

80 %

80

66.7 %

70

60

50

40

33.3 %

30

20 %

20

12 %

10

0


authorities

Type of Retailer

Yes No - 99 -

88 % of the respondents from small grocery shopkeeper‘s category state that

ambience is considered by the customers while making the buying decision. So,

customers are attracted towards the hypermarkets. 12 % of the respondents state that

ambience is not important for selecting the place for shopping.

66.6 % of the respondents in hypermarket category state that ambience is considered

by the customers while making the buying decision. So, customers are attracted

towards the hypermarkets. 33.3 % of the respondent states that ambience is not

important for selecting the place for shopping

Further wholesalers state that ambience is not the major factor to be considered

when customers approach them for shopping the grocery. 20 % of the respondents

state that ambience is the question. 80 % of the respondents from wholesaler‘s

category state that ambience is not the factor to be considered as important one.

From above, it can be stated that small grocery shopkeepers and managers of

hypermarkets feel that ambience is the major factor in attracting the customers. Table 4.1.16 – Table showing response of SGS keepers, hypermarket

authorities and wholesalers about credit card facility provided by retailers


authorities

Sr.

Particulars

No. No. of

No. of

No. of

% % %


1 Yes 0 0 0 0 0 0

2 No 225 100 3 100 5 100

3 Can‘t 0 0 0

0 0 0

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4d, Questionnaire V – Q.4d, Questionnaire VI – Q.4d

- 100 -

Graph 4.1.15 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about credit card facility in the retail stores


about credit card facility in the stores

%

120

100 % 100 % 100 %

100

80

60

40

20

0 % 0 %

0 %

0


authorities

Type of Retailer

Yes No From the table it can be analyzed that no respondents from small grocery shops

keeper‘s category have the credit card facility. From the response given by small

grocery shopkeepers the researcher can interpreted that almost all the respondents

from small grocery shops keepers category don‘t have the credit card system.

Further they state that credit card facility don‘t have any impact on the business.

100 % of the respondents from hypermarket category state that credit card system

has no impact on overall business of the hypermarkets. The Kolhapur customers are

not aware of online facilities offered by hypermarkets. So, they don‘t need the credit

card facility for shopping the grocery.

Wholesalers state that they do not have the credit card facility for shopping the

grocery for customers. Wholesaler further states that facility of the credit card is not

the problem which is not an important factor.

All the respondents from small grocery shops owner‘s category, wholesaler‘s

category and hypermarkets state that the credit card system has no impact.

- 101 -

Table 4.1.17 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about credit facility provided by retailers


Wholesalers

authorities

Sr.

Particulars

No. No. of

No. of

No. of

% % %


1 Yes 196 87.1 0 0 0 000

2 No 29 12.9 3 100 5 100

3 Can‘t 0 0 0 0 0 0

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4e, Questionnaire V – Q.4e, Questionnaire VI – Q.4e Graph 4.1.16 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about credit facility provided by retailers –

%


about credit facility provided by retailers

120

100 % 100 %

100

87.1 %

80

60

40

12.9 %

20

0 %

0 %

0


authorities

Type of Retailer

Yes No - 102 -

From the table, it can be analyzed that 87.1 % of the respondents from small grocery

shops owners‘ category have the credit facility and it is the major strength of the

small grocery shopkeepers as it creates a sense of loyalty amongst their customers.

While 12.9 % of the respondent state that they don‘t have the credit facilities for any

customers. From the response given by small grocery shopkeepers, researcher can

interpret that majority of the respondents from small grocery shops owner‘s category

have the credit facility. The criteria‘s for giving the credit is the association of the

particular customer with the small shop owners.

From the above table, it is clear that no hypermarkets provide the credit facility to

their customers. No hypermarket is in position to provide any sort of credit facility

to their customers because hypermarkets used to have large customer database. So it

is difficult to keep remembrance of every customer. Even though hypermarkets have

loyalty programs, one-to-one contact and relationship with the customers is not

possible.

Wholesalers state that they do not have the credit facility for the customers. From

this, researcher can interpret that majority of the respondents from the category of

wholesalers and hypermarkets do not have the credit facility. Further it can be stated

that majority of the respondents from the category of small grocery shopkeepers give

the credit facility to selected customers.


authorities and wholesalers about cheapness of grocery goods –


Wholesalers

authorities

Sr.

Particulars

No. No. of % No. of

% No. of %


1 Yes 176 78.2 03 100 0 0

2 No 49 21.8 0 0 05 100

3 Can‘t Say 0 0 0 0 0 0

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4f, Questionnaire V – Q.4f, Questionnaire VI – Q.4f

- 103 -

Graph 4.1.17 - Graph showing response of SGS keepers, hypermarket authorities and wholesalers about cheapness of grocery goods

%


about cheapness of grocery goods

120

100 %

100 %

100

78.2 %

80

60

40

21.8 %

20

0 % 0 %

0


authorities

Type of Retailer

Yes No From the table, it can be analyzed that 78.2 % of the respondents from small grocery

shops owners‘ category think that the price of grocery product from the

hypermarkets are cheaper than small grocery shops. While 21.8 % of the

respondents state that price of grocery product from small grocery shops are cheaper

than hypermarkets.

Thus, the small grocery shopkeepers feel that customers whose shopping frequency

is less are getting attracted towards hypermarkets as the purchases are made in bulk.

So, customers are getting the cheaper products and in some cases, discounts on the

MRPs.

From the analysis, researcher can state that because of bulk purchases made by the

hypermarkets, they can offer to keep cheaper prices of the grocery products. In some

cases, even the purchase is made directly from the farmers, which removes the

distribution channel partners like wholesaler. Naturally overall commission

- 104 -

decreases on the grocery products. So, grocery products can be sold at cheaper

prices by the hypermarkets. In case of small grocery shop owner, they will have to

purchase the grocery through middle man i.e. local wholesalers.

From the above table, it is clear that all hypermarket managers have the opinion that

grocery products in hypermarkets are cheaper as compared with small grocery

shops. Hypermarkets have small distribution channel network and the channels are

less as compared with small grocery shopkeepers. So cost is less.

Wholesalers are disagreeing with the fact that they sell the grocery products at

costlier rates. Wholesalers during the interview state that hypermarkets used to

purchase the grocery products from wholesalers. Therefore, there is no question of

selling the grocery products at costlier rates than the hypermarkets.

Majority of the small grocery shopkeepers agree that price of grocery product from

the hypermarkets are cheaper than small grocery shops. And customers making the

bulk purchases and monthly purchases are slowly getting attracted towards

hypermarkets. All wholesalers agree with the fact that they are selling the grocery

products at the cheapest rate as compared with any retailer.

Table 4.1.19 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about parking facility provided by retailers –


Sr.

authorities

Particulars

No.

No. of No. of No. of

% % %


1 Yes 0 0 03 100 00 0

2 No 225 100 0 0 05 100

3 Can‘t Say 0 0 0 0 00 0

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4g, Questionnaire V – Q.4g, Questionnaire VI –

Q.4g

- 105 -

Graph 4.1.18 - Graph showing response of SGS keepers, hypermarket authorities and wholesalers about parking facility provided by retailers

%


about parking facility provided by retailers

120

100 % 100 % 100 %

100

80

60

40

20

0 % 0 % 0 %

0


authorities

Type of Retailer

Yes No From the table it can be analyzed that no respondents from small grocery shops

owner‘s category have the parking facility.

From the response given by small grocery shopkeepers the researcher can analyze

that almost all the respondents from small grocery shops owner‘s category don‘t

have parking facility. Small grocery shopkeepers are in the colonies, apartments,

nukkads or lanes. So, they won‘t get their own space for parking the vehicles of

customers. According to small grocery shopkeepers, availability of parking facility

has no bearing on their business.

All the respondents from hypermarkets manager category states that parking facility

is important for the customers who treat ―shopping as enjoymentǁ and used to

spend many hours in city like Pune attracting customers towards hypermarkets

- 106 -

The wholesalers are having the opinion that parking facility is not the major problem

for the wholesalers. Majority of the respondents from small grocery shopkeeper‘s category state that

they don‘t have the parking facility and it has no impact on their business. For

wholesalers, parking facility is not the problem. Hypermarkets have parking facility. Table 4.1.20 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about variety of brands –


authorities

Sr.

Particulars

No. No. of

No. of

No. of

% % %


1 Yes 193 85.8 3 100 5 100

2 No 32 14.2 0 0 0 0

3 Can‘t 0 0 0 0 0 0

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4h, Questionnaire V – Q.4h, Questionnaire VI – Q.4h

Graph 4.1.19 - Graph showing response of SGS keepers, hypermarket authorities and wholesalers about variety of brands

%

120 100 80 60 40 20 0

Graph showing response of SGS keepers,

hypermarket authorities and wholesalers about variety of brands

85.8 %

14.2 %

100 % 100 %

0 %

0 %


authorities

Type of Retailer

Yes No - 107 -

From the table, it can be analyzed that 85.8 % of the respondents think that because

of more verities and product range in the grocery, customers are attracted towards

the hypermarkets. While 14.2 % of the respondents have the opinion that factors like

large product, range and varieties are not the factors which will affect the buying

decision of the customers.

From the analysis researcher state that variety in the grocery products and larger

product range are responsible for the buying decision. 100 % of the managers from

hypermarket category, state that larger varieties in brands play important role in

motivating customers to buy the grocery from the hypermarkets. Hypermarkets used

to have larger varieties of product in grocery than small grocery shops. So,

customers who can bear to spend for the variety used to attract towards the

hypermarkets. Researcher observes that launching of new products and brands take

place in hypermarkets because of effective distribution channel.

When wholesalers are asked about availability of varieties of grocery they state that

they have number of verities. Thus, they are having huge varieties. Wholesalers state

that varieties of grocery are responsible in attracting the customers.

Majority of the respondents state that customers are attracted towards the

hypermarkets because of more verities and product range in the grocery while few

respondents have the opinion that factors like large product range and varieties are

not the factors that will affect the buying decision of the customers. Table 4.1.21 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about proximity factor


Sr. authorities

Particulars

No. No. of % No. of

% No. of %


1 Yes 206 91.6 3 100 0 0

2 No 19 8.4 0 0 5 100

3 Can‘t 0 0 0 0 0 0

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4i, Questionnaire V – Q.4i, Questionnaire VI – Q.4i

- 108 -

Graph 4.1.20 - Graph showing response of SGS keepers, hypermarket authorities and wholesalers about proximity factor

%


hypermarket authorities and wholesalers about proximity factor

120

100 %

100 %

100 91.6 %

80

60

40

20

8.4 %

0 0 % 0 %


authorities

Type of Retailer

Yes No From the table it can be analyzed that 8.4 % of the respondents from small grocery

shopkeeper‘s category state that customers from longer distance visit their shop

while 91.6 % of the respondent states that customers from longer distance do not

prefer to visit their shop. From this analysis researcher states that proximity plays

important role while shopping from small grocery shops and has the impact on their

business.

All the hypermarket managers state that proximity factor plays important role to

attract customers. Hypermarket managers agree with the fact that proximity in form

of convenience for the customers is important because small grocery shop‘s business

comes from customers living around their shops. So, in order to satisfy daily needs,

customers use to buy the grocery from small grocery shops.

The response about the proximity factor is asked to the wholesalers and from the

table it is clear that they do not think that proximity plays important role in

- 109 -

customer‘s buying decision. Wholesalers state that proximity to the customers for

them doesn‘t have any significance to the business performance.

The major strength of small grocery shopkeepers is their proximity to the customers,

which plays important role to attract them. Table 4.1.22 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about relationship with Customers


Sr. authorities

Particulars

No.



1 Yes 219 97.33 3 100 0 0

2 No 6 2.66 0 0 5 100

3 Can‘t 0 0 0 0 0 0

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4j, Questionnaire V – Q.4j, Questionnaire VI – Q.4j

Graph 4.1.21 - Graph showing response of SGS keepers, hypermarket

authorities and wholesalers about relationship with customers

%


hypermarket authorities and wholesalers about relationship with customers

120

97.33 % 100 % 100 %

100

80

60

40

20

2.66 %

0 % 0 %

0


authorities

Type of Retailer

Yes No - 110 -

From the table it can be analyzed that 97.33 % of the respondents from small

grocery shopkeeper‘s category state that relationship with customers plays important

role in attracting customers while 2.66 % of the respondents state that relationship

with customers does not play important role in attracting customers. Similarly, all

wholesalers think that relationship with customers does not have any impact on their

business. All hypermarkets agree with the fact that relationship with the customers

strengthens the business performance.

From this analysis, researcher finds that relationship with customers has the impact

on the business of small grocery shopkeepers and plays important role while

shopping from small grocery shops.

All the hypermarket managers state that relationship factor plays important role to

attract customers. And hypermarkets are using customer relationship management

programs in form of loyalty cards to enhance loyalty of the customers.

The response about the relationship factor is asked to the wholesalers and from the

table it is clear that they do not think that relationship plays important role in

customer‘s buying decision. Wholesalers state that relationship with the customers

for them does not have any significance to the business performance but they are

maintaining good relationship with small grocery shopkeepers.


authorities and wholesalers about selling the grocery in loose quantity –


Wholesalers

Sr. authorities

Particulars

No.



1 Yes 187 83 - - - -

2 No 38 17 - - -

3 Can‘t 0 0 - - - -

Say

Total 225 100 - - - -

Source – Questionnaire IV – Q.4k, Questionnaire V – Q.4k, Questionnaire VI – Q.4k

- 111 -

Graph 4.1.22 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about selling the grocery in loose quantity -

%


hypermarket authorities and wholesalers about selling the grocery in loose quantity

100

83 %

80

60

40

17 %

20

0 % 0 % 0 % 0 %

0

SGS Keepers

Hypermarket Wholesalers

authorities

Type of Retailer

Yes

No

From the category of small grocery shopkeepers 83 % of the respondents state that

they sale grocery in loose while 17 % do not agree to sale the grocery in loose to the

customers. This factor is not applicable for wholesalers and hypermarkets.

Small grocery shopkeeper‘s strength lies in the fact of selling grocery in loose. Table 4.1.24 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about multiple counters facility –


Sr. authorities

Particulars

No.



1 Yes 0 0 3 100 0 0

2 No 225 100 0 0 5 100

3 Can‘t 0 0 0 0 0 0

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4l, Questionnaire V – Q.4l, Questionnaire VI – Q.4l

- 112 -

Graph 4.1.23 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about multiple counters facility –

Table showing response of SGS keepers, hypermarket authorities and wholesalers about multiple counters

facility

%

120

100 % 100 % 100 %

100

80

60

40

20

0 % 0 % 0 %

0


authorities

Type of Retailer

Yes No All the small grocery shopkeepers state that they don‘t have multiple counters which

don‘t have any impact on their business.

All the Haymarket managers state that they have multiple counters. Because of

multiple counters, customers do not have to wait for their turn for clearing. The 100

% of the wholesalers state that they do not have multiple counters

Multiple counters help the customers in simplifying and improving shopping

experience. It has been observed by the researcher that no. of counters are kept

close. Out of 13 counters, hardly 2 or 3 counters use to open for the customers. It

results in queues of the customers and it enhances difficulties of the customers.

- 113 -

Table 4.1.25 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about supporting staff –


Wholesalers

No. authorities

Particulars

No. of % No. of

% No. of %


1 Yes 17 7.6 3 100 0 0

2 No 208 92.4 0 0 5 100

3 Can‘t 0 0 0 0 0 0

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4m, Questionnaire V – Q.4m, Questionnaire VI – Q.4m Graph 4.1.24 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about supporting staff -

%

Graph showing response of SGS keepers, hypermarket

authorities and wholesalers about supporting staff

120

100 %

100 %

100 92 %

80

60

40

20

7.6 %

0

0 % 0 %


authorities

Type of Retailer

Yes No - 114 -

From the table it can be interpreted that 92.4 % of the respondents from small

grocery shopkeeper‘s category states that they don‘t have more than one employee

while 7.6 % of the respondents states that they have more than one employee. Small

grocery shopkeeper‘s business is not affected by the number of employees recruited

by them.

100 % of all the managers of hypermarket state that supporting staff play important

role in motivating customers to buy the grocery from the hypermarkets.

Wholesalers further disagree with the fact that they do not have sufficient supporting

staff.

From the interpretation it can be analyzed that majority of the small grocery shops

do not have more than one employee. Hypermarkets used to have hundreds of

employees to make shopping easier for the customers visiting them. Hypermarket

managers further state that many schemes and products, which are not known to the

customers, are shown by these employees. Secondly, it has been observed that

because of this only customer used to purchase more than what they require.


authorities and wholesalers about home delivery facility provided by retailers

Sr. SGS Keepers Hypermarket Wholesalers

No. authorities

Particulars

No. of % No. of

% No. of %


1 Yes 215 95.6 1 33.3 00 00

2 No 215 4.4 2 66.7 05 100

3 Can‘t 0 0 00 00 00 00

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4n, Questionnaire V – Q.4n, Questionnaire VI – Q.4n

- 115 -

Graph 4.1.25 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about relationship with Customers


about relationship with Customers

%

120

95.6 % 100 %

100

80 66.7 %

60

33.3 %

40

20

4.4 %

0 %

0

SGS Keepers Hypermarket Wholesalers authorities

Type of Retailer

Yes No

From the table it can be analyzed that 95.6 % of the respondents state that they have

the home delivery facility while 4.4 % of the respondents state that they do not have

the home delivery facility. From the analysis, it can be interpreted that majority of

the small grocery shop have the home delivery facility.

From the analysis, it can be stated that on conditional basis only home delivery

facility will be given to the customers by hypermarkets. By and large hypermarkets

don‘t provide home delivery facility to its customer.

From the table it can be interpreted that wholesalers do not have the home delivery

facility. Further during the interview wholesaler stats that they are not providing

home delivery facility. They further state that customers approaching them use to

purchase the grocery, which will be sufficient for 6 months or year. They used to

take the grocery in their own vehicle.

- 116 -

Small grocery shopkeepers have the home delivery facility. Wholesalers do not have

the home delivery facility. Hypermarkets have the conditional home delivery

facility. Table 4.1.27 – Table showing response of SGS keepers, hypermarket

authorities and wholesalers about discounts facility provided by retailers –

Sr. SGS Keepers Hypermarket Wholesalers

No. authorities

Particulars

No. of

% No. of % No. of

%


1 Yes 38 16.9 3 100 0 0

2 No 187 83.1 0 0 5 100

3 Can‘t 0 0 0 0 0 0

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4o, Questionnaire V – Q.4o, Questionnaire VI –

Q.4o

Graph 4.1.26 – Graph showing response of SGS keepers, hypermarket

authorities and wholesalers about discounts facility provided by retailers -

%


hypermarket authorities and wholesalers about discounts facility provided by retailers

120

100 %

100 %

100

83.1 %

80

60

40

16.9 %

20

0 % 0 %

0


authorities

Type of Retailer

Yes No - 117 -

From the table it can be analyzed that 16.9 % of the respondents state they offer

discount on the selected grocery products. While 83.1 % of the respondents say that,

they do not offer the discounts for the customers. Customers use to purchase in loose

quantity so they do not offer discount to the customers.

From the analysis, it can be interpreted that for bulk purchases only small grocery

shop owner offer the discount. Secondly, it differs from customer to customers.

100 % of the respondents from hypermarket category state that hypermarkets

provide the discount in between 12 to 16% on MRP, when customers purchase more

than specific limit set by hypermarkets respectively.

When the respondents in the category of wholesalers are asked about the discount

facility, they strongly put the opinion against giving the discount to the customers.

They state that customers are offered the lowest possible rates by the wholesalers.

After offering the lowest rate, it will be difficult to offer further discount. From the

table it can be interpreted that 100% of the wholesalers have the opinion that they do

not provide discount facility

Table 4.1.28 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about advertisement –


Wholesalers

Sr. authorities

Particulars

No. No. of % No. of % No. of %


1 Yes 157 69.8 3 100 0 0

2 No 68 30.2 0 0 5 100

3 Can‘t 0 0 0 0 0 0

Say

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4p, Questionnaire V – Q.4p, Questionnaire VI – Q.4p

- 118 -

Graph 4.1.27 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about advertisement -


about advertisement

%

120

100 %

100 %

100

80

69.8 %

60

30.2 %

40

20

0 % 0 %

0


authorities

Type of Retailer

Yes No From the table it can be analyzed that the 69.8 % of the respondents state that

advertisement makes an impact on their business .They further state that the

customers are attracted towards the hypermarkets by observing the advertisements,

while 30.2 % of the respondents state that customers are not attracted towards the

hypermarkets by observing the advertisement. From the analysis, researcher can

interpret that because of the advertisement on the local cable television, News

Papers, leaflets, customers are aware and attracted towards the hypermarkets.

All hypermarket managers state that they used to advertise in the newspaper, in form

of leaflets, in form of carry bags, hoardings in order to attract the customers.

When wholesalers are asked about their opinion on the advertisement, they state that

they are not willing to advertise. From the table it can be interpreted that 100% of

the respondents from the wholesaler‘s category state that they do not advertise.

- 119 -

Table 4.1.29 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about advantage of place –


Sr. authorities

Particulars

No.

No. of % No. of

% No. of %


1 Yes 186 83 03 100 0 0

2 No 39 17 0 0 05 100

3 Can‘t Say 0 0 0 0 00 0

Total 225 100 3 100 5 100

Source – Questionnaire IV – Q.4q, Questionnaire V – Q.4q, Questionnaire VI – Q.4q

Graph 4.1.28 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about advantage of place

%


about advantage of place

120

100 %

100 %

100

83 %

80

60

40

17 %

20

0 % 0 %

0


authorities

Type of Retailer

Yes No - 120 -

From the table it can be analyzed that the 83 % of the respondents from the small

grocery shop keeper‘s category state that location of small shops plays important

role in attracting customers and has major impact on their business while 17 % of the

respondents do not agree with this fact. 100 % of respondents from hypermarket

agree with the issue of location importance .All wholesalers don‘t agree with the fact

that location play important role in attracting customers.

Location of small shops and hypermarkets plays an important role in attracting

customers. Wholesaler‘s business does not depend upon the location as they sale the

grocery in bulk.

In changing retailing scenario, the perception about the place amongst the customers

is changing. The major strength of small grocery shops is that they are close to the

customers. When customers visit hypermarkets, they will have to travel and it

becomes time-consuming affaire unlike when they shop from small grocery shop

which is nearer to them. So, retailers state that when customers are in need they shop

from small shops.

Table 4.1.30 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about place of purchasing the grocery –


Wholesalers

No.

authorities

Particulars No. of

No. of

No. of

% % %


1 Local 225 100 0 0 0 0

Wholesalers

2 Wholesaler 3

100

from other 0 0 5 100

city

3 From Farmers 0 0 3 100 5 100

Source – Questionnaire IV – Q.6, Questionnaire V – Q.6, Questionnaire VI – Q.6

- 121 -

Graph 4.1.29 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about place of purchasing the grocery

%


hypermarket authorities and wholesalers about place of purchasing the grocery

120

100 % 100 % 100 %

100

80

60

40

20

0 % 0 %

0 %

0


authorities

Type of Retailer

Yes No Table shows the details about the purchase made by the small grocery shopkeepers,

hypermarket and wholesalers. It shows that all the small grocery shopkeepers use to

make the purchase from local wholesalers.

Wholesalers and hypermarkets use to purchase the grocery products from different

markets from Gujarat, Delhi and M.P.

Wholesalers and hypermarkets purchase the grocery from different markets whereas

small grocery shopkeepers purchase the grocery from wholesalers.

- 122 -

Table 4.1.31 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about maintenance of stock –


Sr. authorities

Particulars

No.



1 Yes 189 84 3 100 5 100

2 No 36 16 0 0 0 0

3 Can‘t 0 0 0 0 0 0

Say

Total 225 100 3 100 5 100


Graph 4.1.30 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about maintenance of stock

From the table it can be interpreted that 84 % of the respondents from small grocery

shop keeper‘s category state that stock of the grocery is maintained by them. And 16

% of the respondents do not maintain the stock in huge quantity because either they

don‘t have the storage space or financial support to invest in maintaining inventory. 100 % respondents from wholesaler‘s category and hypermarket‘s category maintain

the stock in huge quantity.

- 123 -

From the Interpretation it can be analyzed that majority of respondents from small

grocery shopkeeper are maintaining the stock in multiples of 100 kg. As soon as it

finishes they will bring it from their storage room which either personal or rental

while few small grocery shopkeepers maintain the stock in small quantity in their

shop itself.

All the wholesalers and hypermarkets maintain the huge stock to fulfill customer‘s

needs. Table 4.1.32 – Table showing response of SGS keepers, hypermarket authorities and wholesalers about channels of transportation –


Sr. authorities

Particulars

No.

No. of % No. of

% No. of %


1 Truck 68 30 3 100 5 100

2 Tempo 157 70 0 0 0 0

3 Train 0 0 0 0 0 0

Total 225 100 3 100 5 100


Graph 4.1.31 – Graph showing response of SGS keepers, hypermarket authorities and wholesalers about channels of transportation

Graph showing response of SGS keepers, hypermarket authorities and wholesalers about channels of transportation

120 100 % 100 %

100

80 70 %

% 60

40

Truck

Tempo

30 %

20

Train

0 % 0 %

0


Authorities

Type of retailer

- 124 -

From the table, it is clear that 70% of the respondents from small grocery

shopkeepers category uses tempo as a transportation media and 30% of them uses

truck. During the study, researcher has seen some of the unique ways generated by

small grocery shopkeepers to bring the grocery from the wholesalers. Sometimes

depending upon the need, they use their own vehicles to bring grocery from

wholesalers.

Hypermarkets bring the grocery in bulk from different vendors and warehouses. In

case of wholesalers, many times the rice, wheat is brought from outside the state

where trucks and railways are the only possible ways of transportation. However, all

wholesalers and hypermarkets in Kolhapur city uses truck as transportation media.

After analyzing the operations of organized and unorganized retailers, it is clear that

small grocery shopkeepers, wholesalers and hypermarkets operate differently. Each

of these elements in grocery retailing has their own strengths and weaknesses. In the

initial stages of the arrival of the hypermarkets, small grocery shopkeepers were

doubtful about their future and the existence in the market. Perhaps, this dilemma

acted as a Philip in motivating these small grocery shopkeepers to work more

efficiently and professionally. Thus, the arrival of hypermarkets proved to be ‗a

boon in disguise‘ for small grocery shopkeepers. In case of hypermarkets, Kolhapur

has seen the starting and closing of many chain stores and hypermarkets. Therefore,

it can be stated that the growth of organized retailers is non-uniform. Wholesalers

are in the different state of the business. Their customers are different from either

hypermarkets or small grocery shopkeepers. The firm existence in the market is the

strength of their business.

In the next section, the various services provided by organized and unorganized

retail trades are considered for the assessment.

- 125 -

4.2) Services Rendered by Grocery Retail Trade in Kolhapur city

4.2.1) Introduction Retail marketing is heavily influenced by ―goods servicesǁ. The level of customer

service provided by retail stores today is actually the result of forces that have

evolved over a period of years. The services provided by retailers and quality

perceived has become the new area of focus and attention for present researcher

because of its strong impact on business performance, lower costs, customer delight

and customer satisfaction.

This section aims to study the different services provided by the organized and

unorganized retail traders and tries to compare the services on basis of customer‘s

opinion. Further hypothesis related with the service elements and demographic

variables is tested.

4.2.2) Services offered by retail trade Service quality assesses performance of products and services from customer‘s

perspective. A Good service to customers is one of the primary goals .of product and

service organizations like retail trades. Customer focus in services delivery is

essential for satisfying the customers in grocery retailing. Service quality is the tool

to measure how well the products and services delivered meet customer‘s

expectations. In this thesis, the researcher briefly explains the role of services and

highlights some of the results of the study on services from the customer‘s

perspective.

The retail industry builds the customer loyalty and develops sustainable competitive

advantages using excellent customer service. Good Service retains the customers to

retailer and generates positive word-of-mouth communication, which attracts new

customers. Various services are offered by organized retailers. At the same time,

few services are provided by small grocery shop keepers. These services are

strengths of small grocery shopkeepers.

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4.2.3) Approaches of retailers Customization and standardization are two approaches of retailers use to develop a

sustainable customer service advantage. Successful implementation of the

customized approach relies on the performance of sales associate or the degree to

which customer interactions can be customized using an electronic channel.

The customization approach encourages retailers to meet each customer‘s personal

needs. Thus, it costs a retail business much less to keep its existing customers

satisfied. When customers evaluate retail service, they compare perception of the

service they receive with their expectations. The parameters such as promptness,

faster service, and long working hours are used to assess the quality of service.

Customers are satisfied when the perceived service meets or exceeds their

expectation.

4.2.4) Factors affecting retail trade services

The factors affecting services are explained by various authors. In research paper on ―Service Quality in Retailing Relative efficiency of alternative measurement scales

for different product service environmentǁ published in International journal o f

Retailing and distribution No. 2 ISSN 0959-0552. (53), author Subhash Mehta and

Soon Li Han, describe about the instrument called ‗SERVE QUAL‘ developed by

Persuraman. It has 22 items. It covers 5 dimensions. They are tangibility, reliability,

responsiveness, assurance and empathy. The instrument is tested empirically in

number of studies. Data were collected by means of structured questionnaire. The

questionnaire consists of 3 sections. Respondents were asked to rate 22 statements of

service performance scale for both their regular super market and electronic goods

retailers. The convenient sampling was used in research to gather the data. The

correlation method is used to test the reliability of the 5 dimensions mentioned

above. Factor scaling method was used to collect and organize the data. Author

suggests that there is future scope for the research in other sectors of retailing like

grocery. In emerald research paper series published, research paper on retailing having title ―Format choice of food and grocery retailerǁ by Elizabeth Mathew (IIM) 2005-07

- 127 -

(51) explains the factors affecting stores choice by giving the reference of (Sinha

and Banergee 2004) research which finds that overall proximity of merchandise is

the primary reason and the factors like ambience as well as service offered by stores

are important parameters. The research conducted by (Messenger and Narsimhan

1997) finds that customers are becoming more time conscious at the time of

shopping and consumers prefer one stop shopping. Author further elaborates on the

research conducted by (Sharma and Krishnan 2002) which has made the findings

that role of people in selection of stores choice is negligible. Paper further gives the

reference of Dosh Et al (1976) which had suggested that specialty stores shoppers

were more certain than the departmental stores shoppers about their product choice.

Paper considers Zeithmal (1988) who found that consumers considers monetary and

non monetary costs such as time and efforts thus anything that evaluates the value of

shopping of particular store is the function of perception of customers. According to

author, store ambience plays important role in attracting the customers. Author gives

the reference of Blackwell and Miniard (2001) which states that price level,

assortment and location of store appear as important drivers for consumer‘s choice

between store formats.

Quality and service on the other hand did not differentiate between the different

formats in their study. Author emphasizes on the utility value which is perceived as

the most important parameter in store format choice. This article states that further

research needs to be done for different product categories of groceries and for the

different segments of the customers.

In research paper with title ―Concept of Mall - Measuring attitude and perception

of shoppers towards mall at Mumbaiǁ (72) presented at Conference at IIMA –

Marketing paradigms for emerging economics, 2007 and published in conference

proceedings describes the reasons of shopping in terms of variety, entertainment,

consumption and family factor. The factor analysis is used by the author, which has

the factors such as appeal, convenience, atmosphere, ambience, personnel, parking

and seating arrangement. From the research paper, different ‗service elements‘ are

taken as inputs for preparing the questionnaire.

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4.2.5) Role of various service elements in grocery retail trade The services offered by retailers are considered important as they help the retailers

in establishing cordial relationship with the customer thereby creating a class of

committed buyers. In so far as grocery trade is concerned, the various service

elements assume greater importance as grocery products cater for the basic needs of

the customers and the customer demand depends to a very large extent on the quality

and promptness of the services rendered. Thus, it can be seen that services

mentioned in detail in the corresponding table that follows have provided greater

opportunity for the retailers in expanding the trade by attracting more customers.

The service element in the grocery retail trade has a special significance. It is the

service which attracts the customers towards the particular hypermarket and small

grocery shop also. The perception of the customers towards the service elements

differs individually. So, the researcher has created three different segments of the

customers and their view regarding the services offered to them needs special

attention. When hypermarkets were launched, it was said that they will provide

better service as compared with small grocery shops. But after observing the

progress of hypermarkets in the city of Kolhapur, the researcher has different

findings which are mentioned in the summary of the results. It clearly shows that

service expectations of the customers from different segments needs to be analyzed

in different ways.

The study is limited to the city of Kolhapur which comprises mostly of people

belonging to lower middle class. As a result, various services that the retailers are

providing play an important role in reformulating and restructuring the demand

pattern of the customers. The researcher thinks that in the city like Kolhapur the

impact of services needs to be studied because it directly affect all groups of

customers considered in the study.

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4.2.6) Data Presentation, Analysis and Interpretation Table 4.2.1, 4.2.2, 4.2.3 shows the tabular and representation of various service

elements and the opinion of the three segments of the customers. The three segments

of the customers are customers shopping from both organized and unorganized retailers, customers shopping from only unorganized retailers and customers

shopping from only organized retailers. The service elements are -

Promptness in service – It is defined as the speed at which the customer exits

from the shop after finishing the shopping.

Multiple counter facilities – It is the arrangement made by the retailers about

the billing of the customers.

Long working hours – It is the time i.e. from 9 a.m. to 9 p.m.

Politeness of the employees – It is defined as the support provided by the

employees of the retail trades during the shopping of the customers.

Handling of the customer‟s complaint – It is defined as clearing of the doubts

regarding wrong billing and poor packaging of the grocery etc.

Error free sales transactions – It is related with proper billing of the purchase.

Stock out situation – It is the situation when unavailability of grocery products

arises.

Ambience – It is related with freshness, better interior and surrounding.

Home delivery facility offered to customers – It is the door to door facility

provided by the retailers for their customers.

Parking facility provided to customers – It is the space reserved by the store to

park the vehicles of the customers.

Availability of all products under one umbrella – Means not only the grocery

products but other FMCG goods, furniture, electronic goods, home appliances

etc.

Unadulterated grocery products – It is the virtue by which the grocery

products are recognized as pure and quality products.

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Data Presentation of customer‟s opinion about the services offered –

Table 4.2.1 - Shows the opinion of customers shopping from both types retail

trade about various service elements

Sr.

No. Agree Disagree Neutral Total

Particulars

Res. % Res. % Res. % Res. %

1 Promptness in

service.

323 64.6 128 25.6 49 9.8 500 100

More than one

2 counters for

checkout. 281 56.2 174 34.8 45 9 500 100

3 Long working

4 Employees polite

and helpful.

345 69 114 22.8 41 8.2 500 100

Handling of

5 customer

complaints. 343 68.6 130 26 27 5.4 500 100

6 Error free sales

transactions.

264 52.8 149 29.8 87 17.4 500 100

7 Stock out

situation

168 33.6 287 57.4 45 9 500 100

8 Ambience.

327 65.4 102 20.4 71 14.2 500 100

9 Parking facility

281 56.2 149 29.8 70 14 500 100

10 Home delivery.

202 40.4 251 50.2 47 9.4 500 100

All the products

11 are available

under one

umbrella. 378 75.6 93 18.6 29 5.8 500 100

12 Unadulterated

products

320 64 80 16 100 20 500 100

Source: Questionnaire I – Q.14

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Graph 4.2.1 - Graph showing the opinion of customers shopping from

both types retail trade about various service elements 1. Promptness in service –

For this parameter, opinion of the customers shopping from both types of retail trade

is taken. 64.6 % of the respondents agree with the issue on providing prompt

service. 25.6 % of the respondents disagree with the fact that hypermarket offers

prompt service. 9.8 % of the respondents remain neutral on this issue.

2. More than one counters for checkout – For this parameter, opinion of the customers shopping from both types of retail trade

is taken. 56.2 % of the respondents agree with the fact that multiple counters

enhance quality of services in hypermarkets. 34.8 % of the respondents disagree

with this fact. 9 % of the respondents remain neutral on this issue.

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3. Long working hours – For this parameter, opinion of the customers shopping from both types of retail trade

is taken .71.2 % of the respondents shopping from both types of retail trade are

agree with the fact that long working hours plays important role in attracting

customers towards hypermarkets. 24 % of the respondents shopping from both types

of retail trade are disagree with the fact that long working hours plays important role

in attracting customers towards hypermarkets. 4.8 % of the respondents are neutral.

4. Employees polite and helpful – For this parameter, 69 % of the respondents shopping from both types of retail trade

agree with the fact that supportive staff plays important role in attracting customers

towards hypermarkets. 22.8 % of the respondents disagree with the fact that

hypermarket‘s supportive staff plays important role in attracting customers towards

hypermarkets offering better service. 8.2 % of the respondents remain neutral on this

issue.

5. Handling of customer complaints – Customers can become very emotional about their real or imaginary problems with a

retailer. Often this emotional reaction can be reduced by simply giving customer a

chance to get their complaints off their chests.

For this parameter, 68.6 % of the respondents shopping from both types of retail

trade agree with the fact that handling of customer complaints is important in

enhancing level of trust amongst the customers about the particular hypermarket. 26 % of the respondents state that hypermarkets don‘t have customer complaint

mechanism. 5.4 % of the respondents remain neutral on this issue.

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6. Error free sales transactions – Error free transactions are the transactions, which are free from accounting mistakes .For this parameter, 52.8 % of the respondents shopping from both types of retail

trade, agree with the fact that error free sales transactions take place in

hypermarkets. 29.8 % of the respondents disagree with the fact that error free sales

transactions take place in hypermarkets. 17.4 % of the respondents remain neutral on

this issue.

7. Stock out situation – Organized retailers and unorganized retailers are having stock out situation. For this

parameter, customers shopping from both types of retail trade are agreeing with the

fact that because of stock out situation customers buying decision is affected and in

hypermarket, this situation exits.33.6 % of the respondents agree with the fact that

stock out situation affects buying decision 57.4 % of the respondents disagree with

this fact. 9 % of the respondents remain neutral on this issue.

8. Ambience – For this parameter 65.4 % of the respondents shopping from both types of retail

trade agree with the fact that ambience is important in attracting the customers

towards hypermarkets. 20.4 % of the respondents disagree with the fact that

hypermarkets provide ambience and 14.2% of the respondents remain neutral on this

issue.

9. Parking facility – For this parameter, 56.2 % of the respondents shopping from both types of retail

trade agree with the fact that hypermarkets provide parking facility and is

responsible for lengthening the stay of customers at the hypermarkets. 29.8 % of the

respondents disagree with the fact that hypermarkets provide parking facility. 14 %

of the respondents remain neutral on this issue.

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10. Home delivery – For this parameter, 40.4 % of the respondents shopping from both types of retail

trade agree with the fact that hypermarkets provide home delivery facility and this

factor is responsible for attracting the customers. 50.2 % of the respondents disagree

with the fact that hypermarkets provide home delivery facility and are responsible

for attracting the customers. 9.4 % of the respondents remain neutral on this issue.

Hypermarkets provide conditional home delivery facility which is based upon the

factors such as location of the customers and amount of purchases made. In case of

small grocery shop keepers, they often offer home delivery facility to their regular

customers.

11. All the products are available under one umbrella – For this parameter, 75.6 % of the respondents shopping from both types of retail

trade agree with the fact that hypermarkets provide all products under one umbrella.

18.6 % of the respondents disagree with the fact that all products are available under

one umbrella. 5.8 % of the respondents remain neutral on this issue.

12. Unadulterated products – For this parameter, 64 % of the respondents shopping from both types of retail trade

agree with the fact that hypermarkets provide unadulterated products 16 % of the

respondents disagree with the fact that hypermarkets provide unadulterated products.

20 % of the respondents remain neutral on this issue.

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Table 4.2.2 - Shows the opinion of customers shopping from only unorganized retailers about various service elements

Sr.


Particulars


1 Promptness in

service.

157 78.5 43 21.5 0 0 200 100

More than one

2 counters for

checkout. 13 6.5 187 93.5 0 0 200 100

3 Long working hours

180 90 20 10 0 0 200 100

4 Employees polite

and helpful.

190 95 10 5 0 0 200 100

Handling of

5 customer

complaints. 156 78 44 22 0 0 200 100

6 Error free sales

transactions.

174 87 26 13 0 0 200 100

7 Stock out situation

190 95 10 5 0 0 200 100

8 Ambience.

37 18.5 163 81.5 0 0 200 100

9 Parking facility

15 7.5 185 92.5 0 0 200 100

10 Home delivery.

179 89.5 21 10.5 0 0 200 100

All the products are

11 available under one

umbrella. 173 86.5 27 13.5 0 0 200 100

12 Unadulterated

products

160 80 40 20 0 0 200 100

Source: Questionnaire II – Q.14

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Graph 4.2.2 - Graph showing the opinion of customers shopping from only unorganized retailers about various service elements

Graph showing the opinion of customers shopping only from unorganized retail trade (SGS)

100 93.5 % 95 % 95 % 92.5 %

90 90 % 87 % 89.5 %86.5 %

81.5 % 80 %

78.5 %

78 %

80

70

60

% 50

40

30 21.5 % 22 % 18.5 % 20 %

20

10 % 13 %

10.5 %13.5 %

10 6.5 % 7.5 %

5 % 5 %

0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 % 0 %

0

Pro

mpt

ness

Am

bien

ce

Par

king

fa

cilit

y

Hom

e de

liver

y

Av

ai. O

f al

lprod

uctsU

nad

ulter

atedp

rodu

cts

Particulars ->

Agree

Disagree

1. Promptness in service – In case of customers shopping only from small grocery shop keepers, 78.5% of the

respondents state that unorganized retail traders provide prompt service. 21.5% of

the respondents are not agreeing with this fact. 2. More than one counters for checkout – In case of customers shopping only from small grocery shopkeepers, 6.5% of the

respondents agree with the fact that multiple counters exist in small grocery shops. 93.5 % of the respondents disagree with this fact.

- 137 -

3. Long working hours – In case of customers shopping only from small grocery shopkeepers, 90 % of the

respondents agree with the fact that small grocery shops are having long working

hours. 10 % of the respondents disagree with this fact.

4. Employees polite and helpful – In case of customers shopping only from small grocery shopkeepers, 95 % of the

respondents state that supportive staff plays important role in attracting customers

towards small grocery. 5 % of the respondents are not agreeing with this fact.

5. Handling of customer complaints – In case of customers shopping only from small grocery shopkeepers, 78 % of the

respondents state that handling of customer complaints is important in attracting

customers towards small grocery shopkeepers and they are reasonably satisfied with

small grocery shopkeepers. 22 % of the respondents are not agreeing with this fact.

6. Error free sales transactions – In case of customers shopping only from small grocery shopkeepers, 87 % of the

respondents agree with the fact that error free sales transactions takes place in small

grocery shops. 13 % of the respondents disagree with the fact that an error free sales

transaction happens in small grocery shops.

7. Stock out situation – In case of customers shopping only from small grocery shopkeepers, 95 % of the

respondents agree with the fact that stock out situation arises in small grocery shops.

5 % of the respondents disagree with this fact.

8. Ambience – In case of customers shopping only from small grocery shopkeepers, 81.5 % of the

respondents state that ambience is not important in attracting the customers. And,

- 138 -

18.5 % of the respondents agree with the fact that ambience is important in

attracting the customers. 9. Parking facility – In case of customers shopping only from small grocery shopkeepers, 92.5 % of the

respondents state that parking facility has no impact on their buying decision. 7.5 %

of the respondents state that parking facility has impact on buying decision.

10. Home delivery – In case of customers shopping only from small grocery shop keepers 89.5% of the

respondents agree with the fact that small grocery shops provide home delivery

facility and is responsible for attracting the customers. 10.5 % of the respondents

disagree with the fact that small grocery shops provide home delivery facility and

are responsible for attracting the customers.

11. All the products are available under one umbrella – In case of customers shopping only from small grocery shopkeepers ,86.5% of the

respondents agree with the fact that small grocery shops provide all grocery products

under one umbrella. 13.5% of the respondents disagree with the fact that small

grocery shops do not provide all products in grocery under one umbrella.

12. Unadulterated products – In case of customers shopping only from small shops, 80 % of the respondents agree

with the fact that small shops provide unadulterated products while 20 % of the

respondents disagree with the fact that small shops provide unadulterated products

- 139 -

Table 4.2.3 - Shows the opinion of customers shopping from only organized retailers about various service elements

Sr.


Particulars


1 Promptness in

service.

123 61.5 66 33 11 5.5 200 100

More than one

2 counters for

checkout. 146 73 47 23.5 7 3.5 200 100

3 Long working

hours

154 77 39 19.5 7 3.5 200 100

4 Employees polite

and helpful.

77 38.5 110 55 13 6.5 200 100

Handling of

5 customer

complaints. 79 39.5 114 57 7 3.5 200 100

6 Error free sales

transactions.

141 70.5 47 23.5 12 6 200 100

7 Stock out situation

69 34.5 122 61 9 4.5 200 100

8 Ambience.

144 72 48 24 8 4 200 100

9 Parking facility

153 76.5 35 17.5 12 6 200 100

10 Home delivery.

61 30.5 125 62.5 14 7 200 100

All the products are

11 available under one

umbrella. 177 88.5 16 8 7 3.5 200 100

12 Unadulterated

products

161 80.5 31 15.5 8 4 200 100

Source: Questionnaire III – Q.14

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Graph 4.2.3 – Graph showing the opinion of customers shopping from only

organized retailers about various service elements 1. Promptness in service – In case of customers shopping only from hypermarkets, 61.5% of the respondents

state that organized retail traders provide prompt service. 33% of the respondents are

not agreeing with this fact. 5.5 % of the respondents remain neutral on the issue. 2. More than one counters for checkout – In case of customers shopping only from hypermarkets, 73 % of the respondents

agree with the fact that multiple counters enhance quality of services in

hypermarkets while 23.5 % of the respondents disagree with this fact. 3.5 % of the

respondents remain neutral on the issue.

- 141 -

3. Long working hours – Majority of the customers shopping from hypermarkets tend to agreed with the fact

that hypermarkets provide long working hours. 77 % of the respondents agree with

the fact that long working hours enhance quality of services in hypermarkets while

19.5 % of the respondents disagree with this fact. 3.5 % of the respondents remain

neutral on the issue.

4. Employees polite and helpful – In case of customers shopping only from hypermarkets, only 38.5 % of the

respondents state that supportive staff plays important role in attracting customers

towards hypermarkets. 55% of the respondents are not agreeing with this fact. 6.5%

of the respondents remain neutral on the issue.

5. Handling of customer complaints –

In case of customers shopping only from hypermarkets, 57 % of the respondents‘

state that handling of customer complaints is not important in attracting customers

towards hypermarkets. Only 39.5 % of the respondents are agreeing with this fact.

3.5 % of the respondents are neutral.

Majority of the customers shopping from hypermarkets tend to disagree that

customer complaint mechanism is considered as loyalty program by the

hypermarkets. 6. Error free sales transactions – In case of customers shopping only from hypermarkets, 70.5 % of the respondents

agree with the fact that error free sales transactions take place in hypermarkets. 23.5

% of the respondents disagree with the fact that an error free sales transaction

happens in hypermarkets. 6 % of the respondents remain neutral on the issue.

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7. Stock out situation – In case of customers shopping only from hypermarkets, 34.5 % of the respondents

agree with the fact that stock out situation affects the business performance while 61

% of the respondents disagree with this fact. 4.5 % of the respondents are neutral. 8. Ambience – In case of customers shopping only from hypermarkets, 72 % of the respondent‘s

state that ambience is important in attracting the customers. And 24% of the

respondents state that ambience is not important in attracting the customers.

Ambience is important for the customers shopping from hypermarkets. 4 % of the

respondents remain neutral on the issue. 9. Parking Facility – In case of customers shopping only from hypermarkets, 76.5 % of the respondent

states that parking facility is important in shopping. 17.5 % of the respondents state

that parking facility has no impact on buying decision. 6 % of the respondents

remain neutral on the issue. Proper parking facility for the vehicles enhances the stay

of the customers at the hypermarkets.

10. Home delivery facility – In case of customers shopping only from hypermarkets, 30.5 % of the respondents

agree with the fact that hypermarkets provide home delivery facility and is

responsible for attracting the customers. 62.5 % of the respondents disagree with the

fact. 7 % of the respondents remain neutral on the issue.

Hypermarkets provide conditional home delivery facility which is based upon the

factors such as location of the customers and amount of purchases made. In case of

small grocery shopkeepers, they often offer home delivery facility to their regular

customers.

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11. All the products are available under one umbrella – In case of customers shopping only from hypermarkets, 88.5 % of the respondents

agree with the fact that hypermarkets provide all grocery products under one

umbrella. 8% of the respondents disagree with the fact that hypermarkets don‘t

provide all products under one umbrella. 3.5 % of the respondents remain neutral on

the issue.

Customers shopping from hypermarkets have different requirements about shopping

while shopping grocery. They use to purchase other products, which are required for

entire month. 12. Unadulterated products – In case of customers shopping only from hypermarkets, 80.5% of the respondents

agree with the fact that hypermarkets provide unadulterated products 15.5% of the

respondents disagree with the fact that hypermarkets provide unadulterated products.

4 % of the respondents remain neutral on the issue.

4.2.7) Expectations of the customers shopping from different segments Expectations of the customers shopping from both retail trades – In case of customers shopping from both retail trades expects to purchase all

products, which include grocery, FMCG, electronics etc. this is the main reason why

these customers are attracted towards hypermarkets. Long working hours of

hypermarkets and support from employees are some of the reasons why the

customers are slowly getting attracted towards hypermarkets.

Ambience and unadulteration of the products are proving to be the other main

service elements because of which customers are attracted towards hypermarkets.

Continuous stock out situation and lack of home delivery are some of the service

elements where hypermarkets are not up to the expectations of the customers.

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Expectations of the customers shopping from only small grocery shops – The customer visiting small grocery shops only keeps different views about services

received by them than the other segments of the customers. Their requirements from

shopping are unique. These customers agree that the service elements like all

grocery products under one umbrella, availability of grocery, home delivery facility,

error free transactions, promptness in service and support from the staff are received

by them from their small grocery shop keeper.

Thus, customers shopping only from small grocery shops i.e. unorganized retail

trade are comfortable with the services received by them. This clearly indicates that

the requirements of both segments of the customers are different. Expectations of the customers shopping from only hypermarkets – The customer visiting hypermarkets keeps different views about shopping. Their

requirements from shopping are different. The expectations of these customers are

different from the customers shopping only from small grocery shopkeepers. These

customers expect all products under one umbrella. Unadulterated grocery products

are important for them. Further, they expect specious parking facility, better

ambience, fast checkouts, at convenient working hours with error free transaction.

Customers experience about both retail trades are different and is responsible for

increasing their loyalty about the particular shop. According to customers adoption

process the customers from Kolhapur city are not the regular customers of

hypermarkets. So they fall in category of ‗Late Majority Customers‘. The customers

shopping only from small grocery shopkeepers fall in the category of ‗Laggards‘ in

nature.

In the next section, researcher has made the attempt to understand the role of brand

in grocery retailing is assessed and analyzed using the parameters like brand

preference, price as well as taste issues and trustworthiness of the brand. It has found

that customers from various segments have different opinions about the above-

mentioned elements of brand. Therefore, critical evaluation of these elements needs

to be done.

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4.3) Impact of Brand, Taste and Price on Customer‟s Buying

Decision

4.3.1) Introduction This section has the main objective to study the various aspects of brand like brand

preference, trustworthiness, influence of price and taste to the brand in grocery

retailing. Secondly, how different segments of the customers responds to the aspects

of branding.

Brand preference is nothing but selection of branded or non-branded grocery

products. Taste is all about flavor and smell of the grocery products. Observation of

the price before checking the brand of the grocery products is nothing but customer‘s

tendency to prefer price than brand. Brand trustworthiness is all about quality and

packaging of the grocery products because of which customers prefers particular

brand.

4.3.2) Definition of Brand and principles of Branding in grocery retailing Brand is the name, term, design, symbol, or any other feature that identifies seller's

good or service as distinct from those of other sellers. The legal term for brand is

trademark. A brand may identify one item, a family of items, or all items of that

seller. If used for the firm as a whole, the preferred term is trade name. This section

discusses recent theoretical developments in branding and explains the role of brand

awareness, trustworthiness of brand and relationship between brand, price and taste.

Branding can be especially important in the retailing industry.

In the book with title ―Retail power playsǁ, author Andrew Wileman and Mithel Jary, mentions various strategies of brand building principles of creating successful

brands. These principles are

1) Keep It Simple: one big idea is best.

2) Mass-produced word of mouth (PR) builds brands.

3) Focused brands are more powerful than diffused brands.

4) Somehow, some way, you have to be different.

5) The first brand in a category has a huge advantage.

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6) Avoid sub-brands at all cost.

7) Quality is important, but not as important as the perception of quality.

8) Be consistent and patient. Building a strong brand takes time.

9) Put your brand definition in writing, otherwise you'll get off course. Author further states that apart from conventional brands in grocery, private brands

are emerging and operating seriously. Lastly author describes that brand awareness,

brand integrity are important in grocery retailing. The significance of private brands

in the cities like Kolhapur is negligible and so is not taken for the study.

4.3.3) Role of Brand in customer‟s buying decision

In book, entitled ―Brand Managementǁ Author Harish Verma (26)

writes that there

are three components of brand i.e. firstly structure, secondly conduct and thirdly

performance. Brands are linked with uniformity. Branding is important aspect of

marketing. To identity the product lies with its salient feature and it is brand. The

real boost to branding came in the middle of the twentieth century. A product is

anything that can be offered to market to satisfy a want or need of customer. A brand

is name, symbol, design or a combination. There of, the brands are viewed

myopically. Brand must make the product meaningful for the target costumer. Customer‘s choice behavior is influenced by five steps of values which they tend to

satisfy. The first ‗functional value‘ is physical or functional performance of product

or service. Second value is ‗social value‘ which means the satisfaction that the

consumer seeks by association with certain social groups of society. Thirdly

emotional value which means the ability of the product or service to satisfy the

customers by creating feeling like Joy, love, respect etc. Fourth is epistemic value

which means the need to know or learn something new. Finally, Situational value

which refers to the ability of the product to satisfy situational needs. Brands are

valued for their equity. Brands add value. Brand equity can be thought of as

additional case flow achieved by associating brand with underlying product or

service. Brand equity consists of differential attributes underpinning brand which

gives increased value to the firm‘s balance sheet. Brand equity is defined in terms of

marketing effects uniquely attributable to the brands. The key concept between the

brand and its equity is the brand image. The perception of brand can adjust brand

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value upwards or downwards. Brand awareness is second brand equity asset .It

includes brand recognition and brand recall. Brand loyalty is not dichotomous

construct. It may operate at different levels. Author further describes about the

economical value of the product and consumers perception about it. Economical

perception associated with advantages and disadvantages and consequently they are

able to identity the best possible alternative. Author further mentions passive

perspective that the costumer‘s demand generates from psychological angle. He

further states that consumers are emotionally driven i.e. the role of brand was critical

and emotions of customers play dominant role in selecting particular brand. Author

further states that the cognitive perspective i.e. customer are capable of thinking and

play an active role in locating and buying solutions to their problems. Cognitive

perspective falls in between economic perspective and passive perspective. The

consumers employ their cognitive processes to solve problems. Author further states

about the Brand selection and its relation with attribute association. The product

related attributes are necessary for its performance. Author further stated about

assets and liabilities of the brand. Brand equity is based upon Brand loyalty, brand

awareness, perceived quality and brand association.

In Paper with title ―Customer perceived value W.S.R.: Brand Choiceǁ by Dinesh Sharma

(62), author describes the reasons of shopping in terms of marketing,

consumer behavior and relational issues. The research article secondly mentions

choice decision and its relationship with different brands. The author develops the

model based on perceived value. Article describes that the future scope of branding

is related to brand personality.

Author S. Shridhar in research paper ―Product and Brand choice involvement of

Attaǁ in theme ―Marketing paradigmsǁ for emerging economics in 2007 at IIMA

(63) describes the consumer involvement as one of the important parameters behind

marketing stimulus. Consumer involvement parameter has not been studied in

previous researches. The different issues in the paper are the personal relevance of

the product, brand mediating, directing and motivating the consumer to reduce the

perceived value and author describes independent variables like symbolic value,

hedonic value and interest in research article.

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Author S. Allen Broyles, in research paper with title ―The comparative influence of

brand equity‘s experimental and functional antecedents and its consequences on

U.S. and main land Chinese consumersǁ (32)

writes that brand equity is a key factor

in consumers‘ behaviors towards a brand, including their purchase intent, thus likely

contributing to the level of success that a brand achieves. Author mentions about the

perceived quality and perceived performance of a brand. Author secondly mentions

the importance of perceived quality of a brand represents consumers‘ judgment

about a brand‘s overall excellence or superiority. Thirdly refers previous literature

on branding equity and concludes conceptually that consumers develop feelings of

attraction for the brand as the alternative of choice for satisfying their wants, needs,

and desires.

4.3.4) Process of Brand Building Brand loyalty can be observed at five different levels which can be distinguished

from committed buyer at one extreme to the switcher or indifferent buyer at the

other extreme. In different buyers does not provide the importance for the brand.

The third category of buyer is the customers who are satisfied with the brand and

they have switching costs in terms of time, money and risk.

In the book with title ―Strategic Brand Managementǁ published by Jean-Noe

Kapferer (10)

, author states that brand is invisible contract through persistency and

repetition. This contract can be extended by creating the satisfaction and loyalty.

The brand is to be judged over the long terms.The brand identity refers to the six

different facts, they are physique, personality, culture, self-image, reflection and

relationship. Author Dr. S.L. Gupta in the book titled ―Brand Managementǁ,

published by Himalaya publishing house(7)

states that distinctiveness is the

parameter which separates the one product from the other and subsequently one

brand from another. Author describes two basic models of the business and models

are about product management and brand management models. Author further

describes the sense of satisfaction and dissatisfaction associated with brand which

includes overall effectiveness, strategic skills, innovation, risk profile and speed.

Brand development goes through different stages which includes understanding of

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brand, which brand names can be stretched, which are the new brands and what

would be the brand development plan. Author further describes the ―Brand equityǁ

which consists of awareness, brand loyalty, brand association and perceived quality

if brands are the ingredient of the brand equity. The paper describes about the brand

and consumers and different Brand building tools and consumers. Author describes

about the brand loyalty which include the involvement of the customer in the

particular brand. Further author describes about the process of creating and building

the brands.

In paper with title ‗The diffusion of new service‘ combining service consideration

and brand choice by Vardit Landsman and Moshe Givon published in open access of

Springer link.com(47)

states that‘s the potential customer may undergo various pre

adoption states such as awareness before adapting final product or service.

Secondly, paper describes about active choice process before selecting from

available alternatives in the category. The author further describes that adoption

behavior needs to be studied separately. Further author describes the meaning of the

prediction and prediction behavior about the customers. The author states that

segmentation analysis needs to be done of the customers so as to understand their

future behavior .At the same time the CRM initiatives need to be taken by the

organizations.

4.3.5) Branding and Marketing Mix In paper title ―Acceptance of brand extensions, Author colleen Collins- Dodd and

Jordan J. Louviers (37)

describes about brand equity and its significance .Author

states that well known brands need to spent lower expenses on advertising, trade

deals, price promotions and slotting allowances to generate awareness and obtain

distribution than incase of new brands. Author further mentions that brand equity

Provides leverage of trade level that not only increase product acceptance but also

reduces the cost of introduction. Author further gives the reference of the

relationship between brand and its relationship with brand names and other mix

variables such as trade promotion and consumer advertising would lead to more

effective and efficient strategies. Author further states that merchandising and

advertising count for newly launched product or brands. Author describes that

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brands are directly related with marketing mix strategies. According to the author,

retailer needs to spend time and money for the acceptance of the brands. Newness

and uniqueness are some of the parameters of brand. Author further states that there

is no literature available on retailers branding strategies. Author described about the

importance of ―Wholesale priceǁ because retailer can have the flexibility in

formulating the pricing strategy only when the wholesale price is fixed. Author

described another important parameter for promotion and branding i.e. consumer

advertising Author further describes the category of the brand as ‗strong brand and

weak brand‘. Author lastly suggests that there is scope for future research in

understanding the relationship between the brand and price‘.

In paper entitled ―Do brand personality sales really?ǁ Author Jean Noelkadfrer

from the journal of branding June-2003 (56)

, author states that brand personality is

certainly a key factor of brand identity. Author further describes that Use of roll

models and famous people have the impact on the minds of the shoppers. Author

further mentions that consciousness, orderliness, Positive emotions are some of the

elements which are important in making brand personalize .In research paper, author

further describes about five factor model of the brands. Author further states that

brands are the partners of the business. Author states that future research needs to be

done in case of various aspects of the branding like brand extension and branding

potential.

In guest editorial ,professor of Marketing ‗Randal D. Raggio writes the research

article with title ―Drivers of brand value, estimationǁ 2009 in journal of branding

management 2009 (57)

, and states about the two levels of brand values, they are

current and appropriate which are based on the company owning the brand. Author

further states that firm‘s ability to leverage the brand equity could be reached to the

customers, if all existing brand equity were optimally leveraged. Author states that

there are primary uses for brand valuation. Author lastly concludes that a brand can

encourage costumers to alter their options.

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4.3.6) Data Presentation, Analysis and Interpretation In order to test the significance of brand in grocery retailing, the role of branding is

analyzed and assessed .The three segments of the customers, one who shops from

both type of retailers, second segment is the customers shopping only from small

grocery shop keepers and lastly the customers shopping only from hypermarkets.

The literature review and pilot study are considered for selecting variables which

test the role of brand in grocery retailing. These variables are brand preference,

impact of price and taste on brand and trustworthiness of brands.

Table 4.3.1, 4.3.2 and 4.3.3 shows the tabular and representation of opinion of three

segments of the customers about different elements related with brand. The three

segments of the customers are customers shopping from both organized and

unorganized retailers, customers shopping from only unorganized retailers and

customers shopping from only organized retailers. These elements are –

Preference towards branded grocery – It is nothing but the preference of branded

and unbranded grocery products. Observation of price before brand – It is the tendency of the customers to observe

the price before the brand for making the buying decision. Preference to price than brand – It is the customer‘s decision to purchase the

cheaper products with any brand than costlier branded products. Preference to taste than brand – It is customer‘s preference to taste which is nothing but smell and flavor. Trustworthiness of brand – It is the faith in the brand for the customers.

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Table 4.3.1 - Opinion of customers shopping from both – organized and unorganized retail trade

Sr.


Particulars Res. % Res. % Res. % Res. %

1 I purchase only branded

grocery products 327 65.4 131 26.2 42 8.4 500 100

I check price before

2 selecting a particular

grocery product and its

brand 303 60.6 163 32.6 34 6.8 500 100

Price of grocery is more

3 important than brand for

me 338 67.6 138 27.6 24 4.8 500 100

4 Taste is more important

for me than its brand 282 56.4 207 41.4 11 2.2 500 100

I purchase particular

5 brand because I have

trust in it 359 71.8 114 22.8 27 5.4 500 100

Source: Questionnaire I – Q.15 Graph 4.3.1 – Graph showing the opinion of customers shopping from both –

organized and unorganized retail trade

Graph showing the opinion of customers shopping from both retail trades - organized (hypermarket) and unorganized

80 retail trade (SGS)

71.8 %

67.6 %

70 65.4 %

60.6 % 56.4 %

60

50 41.4 %

% 40 32.6 %

30 26.2 % 27.6 %

22.8 %

20

10 8.4 % 6.8 %

4.8 %

5.4 %

2.2 %

0

Purchase only branded Price is imp. than brand Trustworthiness of bran products

Particulars ->

Agree Disagree

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Preference for the branded grocery products –

From the percentage analysis of the responses, it can be observed that customers

shopping from both trades agree towards the fact that they prefer to purchase

branded grocery in the category of selected grocery products. 26.2 % of the

respondents disagree that they prefer branded grocery products. 65.4% of the

respondents state that they prefer branded grocery products. Customers shopping

from both segments of retail trade give importance to brand. 8.4% of the customers

remain neutral on this issue.

Observation of the price before making purchase decision of products – From the percentage analysis of the responses, it can be observed that customers

shopping from both trades agree towards the fact that they prefer to observe price of

branded products in grocery in the selected products category before making

purchase decision. 32.6 % of the respondents disagree that they observe price of

branded products. 60.6 % of the respondents agree towards the fact that they observe

price of branded products in grocery. Thus, it can be observed that customers

shopping from both type of retailer‘s are inclined towards agreement about the fact

that they check price before brands. Customers prefer to check price and then brand

of grocery products. 6.8 % of the customers remain neutral on this issue.

Price is more influential than brand –

From the percentage analysis of the responses, it can be observed that customers

shopping from both trades agree towards the fact that they prefer to give priority to

price of branded grocery while purchasing in the selected grocery products.

27.6 % of the respondents disagree that they prefer to give importance to price than

brand. 67.6% of the respondents‘ state that they prefer to give priority to price of

branded grocery while purchasing than brand. Customers shopping from both type

of retailer‘s response are inclined towards agreement about the fact that they check

price before brands .Customers give importance to price than brand. Majority of the

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customers shopping from both trades give priority to price than brand. 4.8 % of the

customers remain neutral on this issue. Taste is more influential than brand – From the percentage of the responses, it can be observed that customers shopping

from both trades disagree towards the fact that they prefer to give priority to taste of

branded grocery while purchasing in the selected grocery products. 56.4 % of the

respondents agree that they prefer to give importance to taste than brand. 41.4% of

the respondents disagree that they prefer to give priority to taste of branded grocery

while purchasing. 2.2 % of the customers remain neutral on this issue.

Customers shopping from both type of retail trades response are marginally inclined

towards agreement about the fact of checking taste before brands. Customers give

importance to taste than brand.

. Trustworthiness of the brands – From the percentage analysis of the responses, it can be observed that customers

shopping from both trades have trust towards the fact that they prefer to purchase

branded grocery in the selected grocery products. 22.8 % of the respondents disagree

that they are trustworthy about various brands. 71.8 % of the respondents state that

they are trustworthy about various brands of grocery and purchase branded products

only. 5.4 % of the customers remain neutral on this issue.

Majority of the customers shopping from both trades are aware about various brands

of grocery and purchase branded products only.

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Table 4.3.2 - Opinion of customers shopping only from unorganized retail trade

Sr. No. Agree Disagree Neutral Total

Particulars Res. % Res. % Res. % Res. % 1 I purchase only

branded grocery products 22 11 178 89 0 0 200 100 2 I check price before

selecting a particular grocery product and its brand 178 89 22 11 0 0 200 100 3 Price of grocery is

more important than brand for me 169 84.5 31 15.5 0 0 200 100 4 Taste is more

important for me than its brand 15778.5 43 21.5 0 0 200 100 5 I purchase particular

brand because I have trust in it 49 24.5 151 75.5 0 0 200 100 Source: Questionnaire II – Q.14 Graph 4.3.2 – Graph showing the opinion of customers shopping only from unorganized retail trade

Graph showing the opinion of customers shopping from

only unorganized retail trade (SGS)

100

90 89 % 89 %

84.5 %

80 78.5 %

75.5 %

70

60

% 50

40

30 21.5 % 24.5 %

20 11 % 11 % 15.5 %

10 0 % 0 % 0 % 0 % 0 %

0

Purchase only branded Price is imp. than brand Trustworthiness of bran products

Particulars ->

Agree Disagree

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Preference for the branded grocery products –

From the percentage analysis of the responses, 11 % of the respondents from

category of customers shopping from small grocery shop keepers agree towards the

fact that they prefer to purchase branded products in the selected grocery products.

89 % of the respondents disagree that they prefer to purchase branded products. From the table, it can be seen that Customer‘s shopping only from small grocery

shopkeepers response is inclined towards disagreement of preferring branded

grocery products. Customers shopping from small grocery shops do not give

importance to brand. They are aware about the brands but many times because of

price pressures, they can‘t afford to purchase the branded products which are

costlier. In such cases, customers purchase either cheap product or unbranded

product.

Observation of the price before making purchase decision of products – Customers shopping only from small grocery shop keepers agree towards the issue

of observing the price before purchasing grocery products. 89 % of the respondents

from this category agree towards the fact that they prefer to check price before

purchasing the branded products in the category of selected grocery products. 11 %

of the respondents disagree on the issue.

Price is more influential than brand – From the percentage of the responses, it can be observed that 84.5 % of the

respondents from the customers shopping only from small grocery shops category,

agree towards the fact that they prefer to give priority to price of branded grocery

while purchasing in the selected grocery products. 15.5 % of the respondents

disagree about the fact that they prefer to give importance to price than brand.

Taste is more influential than brand – Customers shopping only from small grocery shops category, agree towards the fact

that they (78.5 %) prefer to give priority to taste of branded grocery while

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purchasing in the category of selected grocery products. 21.5 % of the respondents

disagree with this fact that they prefer to give importance to taste than brand. Trustworthiness of the brands – From the percentage analysis of the responses, it can be observed that 24.5 % of the

respondents from the customers shopping only from small grocery shops category,

agree towards the fact that they have trust in particular brand of grocery products

while purchasing products selected. 75.5 % of the respondents disagree with the fact

that they have trust to purchase grocery without giving importance to brand of the

products.

Table 4.3.3 - Opinion of customers shopping only from organized retail trade

Agree Disagree Neutral Total

Sr.

No. Particulars Res. % Res. % Res. % Res. %

I purchase only

1 branded grocery 174 87 20 10 6 3 200 100

products

I check price before

2 selecting a particular

100 50 89 44.5 11 5.5 200 100

grocery product and

its brand

Price of grocery is

3 more important than 117 58.5 73 36.5 10 5 200 100

brand for me

Taste is more

4 important for me 110 55 80 40 10 5 200 100

than its brand

I purchase particular

5 brand because I 123 61.5 67 33.5 10 5 200 100

have trust in it


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Graph 4.3.3 – Graph showing the opinion of customers shopping only from organized retail trade

Graph showing the opinion of customers shopping from only organized retail trade (hypermarkets)

100

90 87 %

80

70

60 50 %

%50 44.5 %

40

30

20 10 %

5.5 %

10 3 %

0

58.5 %

36.5 %

5 %

61.5 % 55 %

40 % 33.5 %

5 % 5 %

Purchase only branded Price is imp. than brand Trustworthiness of bran

products

Particulars ->

Agree

Disagree

Preference for the branded grocery products – From the percentage analysis of the responses, 87 % of the respondents from

category of customers shopping only from hypermarkets agree towards the fact that

they prefer to purchase branded products in the selected grocery products. 10 % of

the respondents disagree that they prefer to purchase branded grocery products. 3 %

of the customers remain neutral on this issue.

Observation of the price before making purchase decision of products – Customers shopping only from hypermarkets agree towards the issue of observing

the price before purchasing grocery products. 50 % of the respondents from this

category agree towards the fact that they prefer to check price before purchasing the

branded products in the category of selected grocery products. 46.5% of the

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respondents disagree on the issue. 4.5 % of the customers remain neutral on this

issue. Price is more influential than brand – Customers shopping from only hypermarkets, agree towards the fact that they prefer

to give priority to price of branded grocery while purchasing in the selected grocery

products. 58.5 % of the respondents disagree that they prefer to give importance to

price than brand. 41.5% of the respondents‘ state that they prefer to give priority to

price of branded grocery while purchasing than brand.

Taste is more influential than brand – Customers shopping from only hypermarkets (55%) agree towards the fact that they

prefer to give priority to taste of branded grocery than its brand while purchasing in

the selected grocery products while 40 % of the respondents‘ state that they prefer to

give priority to brand than taste of grocery while purchasing. 5 % of the customers

remain neutral on this issue.

Trustworthiness of the brands – Customers shopping from only hypermarkets (61.5%) have trust in brand of grocery

in the category of selected grocery products while 33.5 % of the respondents

disagree that they are trustworthy about various brands. 5 % of the customers remain

neutral on this issue.

In the process of completing the analysis, the researcher has found that the concept

of brand has assumed greater significance in fast changing situation. It is true that

brand awareness is increasing amongst the customers. But still, price and taste are

preferred to different brands of commodities. Thus, the present study becomes

unique, as it has considered several aspects of branding of commodities.

Customers shopping only from small grocery shops prefer price and observe the

price of a branded product before making purchase decision. Customers shopping

from both types of retail trade have trust in branded products and give due

importance to the price of the grocery products. Majority of the customers shopping

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only from hypermarkets prefer to purchase only branded grocery products because

of its trustworthiness.

Customers shopping only from hypermarkets prefers brand over price but do agree

with the fact that taste is important than brand of grocery products.

Thus, this section covers the role of brand in grocery retailing and its significance.

The researcher attempted to analyze the impact of price and taste on the brand in the

grocery retailing. Many times, customers while purchasing the products like tea,

wheat used to prefer the prices first and then brand. This clearly shows that price,

taste and brand are closely associated with each other.

The next section covers the various aspects of the customers and their opinion

regarding various components in grocery retailing.

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4.4) Ascertainment & Evaluation of Customer‟s Views towards

Grocery Retail Trade 4.4.1) Introduction The section covers the study of various parameters of customer‘s perception and attitude

and the opinion of customers about sales promotion strategies used by retailers. Three

segments of the customers namely customers shopping from both types of retail trade

(organized and unorganized), customers shopping only from unorganized retail trade

(small grocery shops) and the customers shopping only from organized retail trade

(hypermarket) are considered because their views differ from each other. In certain

cases, the views are polarized. Demographic variables such as education, gender, age,

level of income are considered for the study. Frequency of shopping and spending

patterns is the main factors for the customers while shopping from either small grocery

shopkeepers or from the hypermarkets. Role of sales promotion is critical for the

hypermarkets as they spend lot of money on it.

4.4.2) Role of customer‟s Perception and attitude in grocery retailing Perception is the process by which organisms interpret and organize sensation to

produce a meaningful experience of the world. Sensation usually refers to the

immediate, relatively unprocessed result of stimulation of sensory receptors in the

eyes, ears, nose, tongue, or skin. The study of consumers helps firms and

organizations to improve their marketing strategies by understanding various facets

of perception in grocery retail trade. S.A. Chunnawala states that the first step of

customer learning is to understand the product and the need of the customer. Author

describes about responsiveness of marketing and further author further states that

market segmentation plays equally important role in preparation of customers

learning process. Role of customer perception is important in learning process. It is

defined as process of selection, organization and interpretation of stimuli into

meaningful and coherent picture in the world. Author describe about subliminal

perception i.e. people perceive stimuli without being aware of them it may be weak

and behalf. Author also states about perceptual selection which is combination of

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contrast in form of package, design, advertising and media. Perceptual interpretation

revolves around stereotyping, physical appearance, first impression etc. Author

lastly describes perceptual grouping through different laws i.e. law of proximity, law

of similarity, law of closure.

4.4.3) Elements of perception Further, she narrates elements of perception .These elements are product or service

and then organization and interpretation of these elements into events. Author

describes perception as mental process as well as cognitive and thinking process.

Author states that consumers have a number of perceptions of images, perception of

quality, and perception of the price. Author suja Nayar further mentions that

attitudes have usually been associated with notion of liking and disliking. Author

defines the Attitude as inner expression or feeling that reflects when the person is

favorably or unfavorably predisposed to the product or brand .Author further defines

the attitude as a learned orientation or disposition, toward an object or situation,

which provides a tendency to respond favorably or unfavorably to the object or

alternative solution.

4.4.4) Customer‟s perception about proximity, enjoyment facilities and overall

environment Author Arif sniekh and Kaneez Fatima in the book with title ―Retail managementǁ

state that customer perception is the process by which customer understands the

world and events. Authors state that consumer learning occurs from a complex

interaction between stimuli, cues responses and reinforcement. The Authors further

describe that perception of the customers depend upon various elements such as ―proximity, ambience, enjoyment. ― Author Michael R. Solemon describes perception as sensory system. Which includes

the parameters such as signets, sound, smell, taste, temperature and sensory

reception, Eyes, Ears, Nose, Mouth, Skin which deal about exposures attention and

interpretation.

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Author Stephan Robbins and Seema Sanghi state that perception is a process by

which individuals organizes and interpreted their sensory impressions in order to

give meaning to their environment. Authors state that that perception differ from our

perceptions of inanimate objects such as desks and machines or building because we

make inferences about the action of people that we don‘t make about inanimate Objects. Author further mentions that the intensity- a loud noise, strong odor or

bright light and space affect customer‘s perception. Secondly, author state that size

of the shopping place affects the perception. Author mentions that there are three

components o perception like emotional, informational and behavioral. The

emotional component involves the persons feeling, which affects positive natural or

negative emotions. Informational component consists of the belief and information

the individual has about the object. The behavioral component consist of persons

tendencies to behave in particular way towards products and services.

S.A. Chunnavalla states that Attitude consists of three components, i.e. Cognitive

component i.e. belief component, an affective component and conceive or action

tendency component. Cognitive component means smell, occasion, brightness and

presence. Affective component revolves around emotions and enjoyment, happiness,

sadness and amazement .Cognitive component revolves around beauty,

moonlighting etc.

Author Georg Bekh and Michel Belan state that attitudes are important to marketers

because they theoretically summarize consumer‘s evaluation of an object. Authors

describe about the multi attribute attitude model .Authors describe the attitude as

brand. Authors further state that attitude change is possible by changing the belief

and their strengths and changing the perceptions of beliefs rating for competing

board. Thirdly, adding new attribute. Fourthly, author states that many times the

comparison with existing brands is done so as to change the attitude of the

consumers.

According to the author P. Solman, the functional theory at attitude was developed

by Psychologist and it explains how attitudes facilitate social behavior. The author

describes ABC model of attitudes, which states that affect, behavior and cognition

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are three steps of building attitude. ―Author describe about intensions and behavior

which is the part of the fishbone modelǁ.

Authors Jogdisn n Sheth, Atul Parvariyar and G.Shanesh in the book of title ―Customers relationship Managementǁ states that customer‘s perception and

preferences can be improved and changed on the basis of relationship between the

retailers and customers. Authors describe about contact, involvement, intimacy,

deterioration repair and dissolution as a part of exit. Further personalization and

customization described as two pillars of generating the preferences and perception.

Authors further states that relationship with customers can be measured by using a

parameters like responsiveness, capability, confidence communication channel,

tangibility and top management Author further states that loyalty has to measured. The inputs at the customer‘s loyalty can be the perception, preference and attitude. In Paper title - ―Consumer Demographics, store attributes, retail format choice in

the grocery marketǁ By Jasen Carpenter and Marqurite Moore in International

journal of Retailing and Distribution Management vol. 34 2006 no.6 Author

describes about general grocery consumers who used to choice the retail formats in

US. The random sample was used for research and sample size was 454. The results

pertaining to various retailers are gathered and informed individually. Research

Paper secondly, describes various factors, which affects customer preferences about

the outlets. Thirdly, author focuses upon cross shopping and retail format choice.

Pretesting for the research was carried out on 2 shoppers. Article suggests that future

research needs to be carried out in situations under which customers.

4.4.5) Customer‟s perception about pricing strategies, bargaining power and

discounts offered by retailers – In Paper with title “ How Does Assortment Affect Grocery Store Choiceǁ, professor Edward J. Fox, Richard A. Brisesch, and Pradeep K. Chintagunta in Indian journal

of Marketing January 2008, describes the impact of product assortment along with

convenience prices and feature advertising on store choice, we add assortments as

predictor, specify a very general structure for heterogeneity and estimate store

choice and category needs models simultaneously using house hold

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level marketing basket data. Lastly, the author through its findings makes the

comment that number of brands offered in retail assortments has a positive effect on

stores choice for most households, while the number of brands offered in retail

assortment has positive effect on store choice for most households while number of

stock keeping units (SKUs) per brand and proportion of SKUs sold at a store that are

unique to that store have a negative effect on store choice for most households.

Secondly research paper put forth the findings that heterogeneity in the response to

assortment affects than to either convenience or price. Retail assortment has the

third rank after location and low pricing (Arnold, Mg and Tigert 1978), (Arnold

Roth and Tigert 1981), (Arnold Oum and Tigert 1983). The foundational theory of

stores choice suggests that the probability of choosing retail outlet is to its size but

inversely related to its distance from the shoppers home (Reilly 1931, Hutt 1964 and

Brown 1984). The size of the outlet, a proxy for product selection, is the product of

number of categories offered and number of items within each category. Because

most grocery stores carry the same categories, differences in product selection

across stores depend almost entirely in category assortment. Author states that there

is there is scope for further research in assessment of further research in

understanding importance of merchandising.

In Paper: ―Shopping Orientation in the Evolving Indian Marketǁ by Piyush Kumar Sinha in Vikalpa Vol 28 No.2 April June 2003 ,writes with that research done by Stone

(1954) where survey had been conducted on women departmental store shoppers. The

paper categorizes shoppers into four types. They are Economic shoppers, personalizing

shoppers, Ethical shoppers and Apathetic shoppers. On some lines, paper takes the

reference of research conducted by Chicago Tribune (Brown and Reid, 1955) where the

categorization of shoppers is making like Dependant shoppers, compulsive shoppers,

and individualistic shoppers (14). Researcher also finds that 31% of the shoppers are

recreational shoppers (14).Paper takes the review of the research paper written by Ezel

and Motes (1985) in which the author finds that men and women are having similar

attitude with regard to grocery shopping. Lesser and Huges (1986) found 11 types of

shoppers. The largest group of customers (19%) prefers service. 15% shoppers are

inactive and 13% are active ones. This research paper deals with store orientation.

Reliability analysis consisting of 37 statements and then the 13 factors are decided for

further analysis. The

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thirteen factors considered for the study are Gratification derived, Information

search during purchase, Post purchase behavior, pre purchase preparation,

composite, experience sharing, managing stress, information seeking, Exploring,

Relaxed after shopping loyal, bargain seeking, Go and grab, Price seeking. Author

founds that Indian customers shopping comes out as entertainment. Indian

customers have emotional value than functional value out of shopping. Indian

consumer discuss about their visit to the others in shopping so the handling of the

customer‘s needs to be given paramount importance .The author states Indian

customers like to bargain.

4.4.6) Customer‟s attitude towards merchandising, pricing and stock outs In research Paper with title: ―Understanding consumers attitude towards retail store

in stock out situationsǁ By Leela Rani and Sonal Kumar Veloy Udhan emerald May- 2007, in Asia Pacific journal of marketing and logistics, 2008 Volume 2

number 3. Author states that how customers attitude towards retail stores gets

affected by situations, store and product characteristics variables when they face out

of stock situations. In recent years, the more emphasis is given on measuring

customer‘s attitude towards retail store. The attitude measurement becomes more

significant under stock out situation for particular products. There is complete lack

of understanding about consumers attitudes towards out of stock situations. It is

more important to understand attitude than behavior for two reasons. Firstly attitude

affects behavior and secondly attitude serves as on important measure for

effectiveness of retailer strategies. For example, retailer will lose revenue in out of

stock opinion. Grocery manufacturers at America (2002) identified stock out as on

obstacle in meeting shopper‘s satisfaction objectives. Attitudes are functions of

indirect experience (Fazio and Zanna 1981; Eagly and Chaiken, 1993). Article forms the framework for furthering research in analyzing importance of customer‘s attitude. Author states about the variables, such as specific time constraint, shopping trip,

store loyalty, shopping attitude, shopping frequency. Author has found that

consumer‘s store attitude gets the substantially and positively affected and favorable

for price perception and available stock.

- 167 -

Consumer often revisit store to purchase out of stock item due to price reasons.

Research paper used survey questionnaire method for data collection, exit interviews

are conducted at storefront with consumers who were asked to imagine stock out

situation.

Author suggests that there is needed to review the pricing strategies for further

research. 4.4.7) Data presentation of customers Data presentation of demographic variables of the customers shopping from

both types of retail trades – Organized (Hypermarkets) and Unorganized

(Small Grocery Shops) – Table 4.4.1- Education wise distribution of the respondents – Table shows the level of education of the selected sample. i.e. customers

shopping from organized and unorganized retailers.

Sr. No Level of Education No. of Respondents % of Response

1. Undergraduate 051 10.2 2. Graduate 225 45.0 3. Post graduate 224 44.8

Total 500 100.0 Source: Questionnaire I – Q.1

Graph 4.4.1 - Pie chart showing education wise distributions of respondents

Pie chart showing education wise distributions of respondents

10%

45% Undergraduate

45%

Graduate

Post graduate

- 168 -

From the table, it can be analyzed that 45% of the respondent shopping from

hypermarkets and small grocery shoppers are graduates while 10.2 % of the

respondents are undergraduates. And 44.8 % of the respondents are highly qualified

i.e. post graduates.

Thus, significant number of respondents from customers shopping from both types

of retailers is highly qualified.

Table 4.4.2 - Gender wise distribution of the respondents Table shows the gender of the selected sample i.e. customers shopping from

organized and unorganized retailers.

Sr. Gender No. of % of Response

No Respondents

1. Male 166 33.2

2. Female 334 66.8

(Housewives 97, Working 237) (97+237) (15.4+47.4)

Total 500 100.00

Source: Questionnaire I – Q.2 Graph 4.4.2 - Pie chart showing gender wise distributions of the respondents

Pie chart showing gender wise distributions of the respondents

33%

Male

Female

67%

- 169 -

From the table it can be interpreted that 33.2 % of the respondents are males who

shops from both type of retailers, while 66.8 % of the respondents are female in this

category of the shoppers.

Thus, the female shoppers are the major customers of hypermarkets. Working

women dominates this category.

Table 4.4.3 - Age wise distribution of the respondents Table indicates the age wise distribution of the respondents in the various age

groups varying from the age of 20 to 40 with the class interval of 5 years.

Sr. No Age No. of % of Response Respondents

1. 20-25 years 051 10.2

2. 25-30 years 136 27.2

3. 30-35 years 122 24.4

4. 35-40 years 136 27.2

5 above 40 years 055 11.0

Total 500 100.0


Graph 4.4.3 – Pie chart showing age wise distributions of respondents

Pie chart showing age wise distributions of respondents

11% 10%

20-25 years

27% 27%

25-30 years

30-35 years

35-40 years

above 40 years

25%

- 170 -

From the table, it can be analyzed that 10.2 % of the customers are in the age in the

age group of 20to 25 years While 27.2% of the respondents fall in the category of 25

to 30 years of age4 group. 24.4% of the respondents shopping from small grocery

shop keepers and hypermarkets fall in the category of the age group in between 30

to 35 year. While 27.2% of the respondents fall in the category of 35 to 40 years of

age group11 % of the respondents fall in the category of the age group of 40 and

above years.

Thus, majority of the customers shopping in hypermarkets and small grocery

shopkeepers are in the age group of 25 to 40. Table 4.4.4 - Occupation wise distribution of the respondents Table describes the occupation wise distribution of the respondents. The categories

like service, business, retired, housewife, farmers and others are selected.

Sr. No Occupation No. of Respondents % of Response

1. Service 257 51.4

2. Business 148 29.6

3. Retired 000 00.0

4. Housewife 046 09.2

5. Farmer 049 09.8

6. Others 000 00.0

Total 500 100.0


- 171 -

Graph 4.4.4 – Pie chart showing occupation wise distributions of the respondents

Pie chart showing occupation wise distributions of the

respondents

10%

9%

Service

0%

Business

51%

Retired

Housewife

30%

Farmer

Others

From the Table, it can be analyzed that 51.4 % of the respondents shopping in small

grocery shops and hypermarkets are doing the service. 29.6 % of the respondents are

Entrepreneurs. 9.2 % of the respondents are housewives very few customers are

retired citizens and 9.8 % are farmers.

This clearly shows that the customers shopping in small grocery shops and

hypermarkets are from service category and considerable number of women is from

working category.

- 172 -

Table 4.4.5 - Income wise distribution of the respondents shopping from both types of retailers Table shows income wise distribution of the respondents shopping from both types

of retailers. The income levels from less than 5000 to the maximum income group of

25K and more are selected at the income level with class interval of 5K.

Sr. Asked Question No. of % of Response No about occupation Respondents 1. Less than 5000 005 001

2. 5K-10 K 044 08.8

3. 10 K to 15 k 54 10.8

4. 15-20 K 221 44.2

5. 20 - 25 K 122 24.4

6. above 25K 54 10.8

Total 500 100.00

Source: Questionnaire I – Q.5 Graph 4.4.5 – Pie chart showing income wise distribution of respondents

Pie chart showing income wise distribution of respondents shopping only from both types of retailers

1%

11% 9% Less than 5000

11% 5K-10 K

24%

10 K to 15 k

15-20 K

20 - 25 K

44%

above 25K

From the table it can be interpreted that only 1 % of the respondent‘s falls in the

income group of less than 5000 Rs. 8.8 % of the respondent‘s falls in the income

group of 5000 to 10000. 10.8 % of the respondents shopping from hypermarkets and

- 173 -

small grocery shopkeepers fall in the income group of 10000-15000. 44.2 % of the

respondents shopping from hypermarkets and small grocery shopkeepers fall in the

income group of 15000-20000. 24.4 % of the respondents shopping from

hypermarkets and small grocery shopkeepers fall in the income group of 20000-

25000.

Only 10.8 % of the respondents shopping from hypermarkets and small grocery

shopkeepers fall in the income group of income level more than 25000.

Low-income groups i.e. Income from 0 to 15000 Rs. are the main customers of

small grocery shop keepers. Only 19.6 % of the customers who are considered as

lower income group customers are regular shoppers of the hypermarkets.

Thus, majority of the customers (79.4%) of the respondents are major customers of

hypermarkets. Table 4.4.6 - Table showing spending patterns of the respondents shopping from both types of retailers

Sr. Amt. spend on No. of % of response

no. shopping the grocery Respondents

1. Less than 1000 85 17

2. 1000-2000 280 56

3. Greater than 2000 135 27

Total 500 100.0


- 174 -

Graph 4.4.6 – Pie chart of the respondents shopping from both types of retailers

Pie chart of the respondents shopping from both

types of retailers

17% 27%

Less than 1000

1000-2000 Greater than 2000

56%

From the table it can be analyzed that 17% of the customers shopping from both

types of retailers spend less than 1000 Rs on grocery purchase while 56% of the

respondents purchase the grocery in the range of 1000 – 2000 Rs., and 27% of the

respondents spend greater than 2000 Rs. on the purchase of grocery.

Thus, customers shopping from both retailers spend approximately 1000 to 2000 Rs.

on grocery purchasing. Table 4.4.7 - Table showing frequency of shopping

Sr. no. Frequency of No. of % of

shopping Respondents response

1. Weekly 10 2

2. Monthly 410 82

3. Fortnight basis 65 13

4. Yearly 15 3

Total 500 100.0


- 175 -

Graph 4.4.7 – Pie chart showing distribution of respondents according to frequency of shopping

3% Pie chart showing distribution of respondents

according to frequency of shopping 2%

13%

Weekly Monthly Fortnight basis Yearly

82% From the table it can be analyzed that to 2% of the customers purchase the grocery

on weekly basis. 82% of the customers purchase the grocery on monthly basis, 13%

of the customers shops the grocery fortnightly while 3% of the respondent‘s

purchase the grocery on yearly basis from both retail trade.

Thus, customer shopping from both retailers shops monthly.

Table 4.4.8 - Preference for organized retailers amongst customers

Table illustrates respondent‘s opinion about the preference of the

hypermarkets from customer‘s perspective. Four hypermarkets i.e. Lucky bazaar, D Mart, Big Bazaar and Vishal Mega Mart are taken for consideration.

Sr. No Preference of No. of % of Response shopping Respondents

1. Lucky Bazaar 161 32.2

2. D mart 117 23.4

3. Big Bazaar 140 28.0

4. Vishal 082 16.4

Total 500 100.0


- 176 -

Graph 4.4.8 – Pie chart showing distribution of respondents according to preference of shopping

Pie chart showing distribution of respondents according to preference of shopping

16%

32%

Lucky Bazaar

D mart

28%

Big Bazaar

24%

Vishal

From the table, it can be analyzed, that the respondents prefer to shop all

hypermarkets.32.2 % of the respondents prefer to shop from Lucky bazaar while 28

% of the respondents prefer to shop from Big bazaar 23.4 % of the respondents shop

from D mart and 16.4 % of the respondents prefer to shop from Vishal mega mart.

Thus, the response of the customers is divided over the preference of hypermarket.

Data Presentation of demographics of customers shopping only from

Small Grocery Shops – Table 4.4.9 - Title - Education wise distribution of the respondents Table shows the level of education of the selected sample. i.e. customers shopping from unorganized retailers only.

Sr. no. Education No. of % of response

Respondents

1. Under Graduate 047 23.5

2. Graduate 115 57.5

3. Post Graduate 038 19.0

Total 200 100.0


- 177 -

Graph 4.4.9- Pie chart showing education wise distributions of respondents

Pie chart showing education wise distributions of respondents

19%

23%

Under Graduate

Graduate

Post Graduate

58% From the table, it can be analyzed that 57.5% of the respondent shopping only from

small grocery shoppers are graduates while 23.5% of the respondents are

undergraduates. Only 19% of the respondents are highly qualified i.e. post

graduates.

Thus, it is clear that Very few respondents from highly qualified category visit

the small grocery shopkeepers. Table – 7.10 Gender wise distribution of the respondents. Table shows the gender of the selected sample i.e. customers shopping

from organized and unorganized retailers

Sr. Gender

No. of % of

no. Respondents response

1. Male 137 68.5

2. Female 63 31.5

(Housewives 38, Working 25) (38+25) (19+12.5)

3. Total 200 100


- 178 -

Graph 4.4.10 - Pie chart showing gender wise distributions of the respondents

Pie chart showing gender wise distributions of the respondents

32% Male

68%

From the table it can be interpreted that 68.5% of the respondents are males who

shops from small grocery shop keepers while 31.5% of the respondents are female in

this category of the shoppers.

Thus, the male shoppers are the major customers of the small grocery shopkeepers.

Female category of the shoppers is dominated by housewives. Table 4.4.11 - Age wise distribution of the respondents Table indicates the age wise distribution of the respondents in the various age

groups varying from the age of 20 to 40 with the class interval of 5 years.

Sr. no. Age No. of % of response

Respondents

1. 20-25 yrs 6 03.0

2. 25-30 yrs. 24 12.0

3. 30-35 yrs. 21 10.5

4. 35-40 yrs. 32 16.0

5. Above 40 yrs. 117 58.5

Total 200 100.0

. Source: Questionnaire II – Q.3

- 179 -

Graph 4.4.11 – Pie chart showing age wise distributions of respondents

Pie chart showing age wise distributions of respondents 3%

12%

10%

20-25 yrs

59% 16%

25-30 yrs.

30-35 yrs.

From the table, it can be interpreted that 10.5% of the respondents shopping from small

grocery shopkeepers falls in the category of the age group in between 30 to 35 year.

While 12% of the respondents fall in the category of 25 to 30 years of age4 group only

16% of the respondents falls in the category of the age group of 35 to 40 years. 58.5%

of the respondents fall in the category of the age group of 40 and above years. Only 3%

of the customers are in the age in the age group of 20to 25 years.

Thus, majority of the customers shopping in small grocery shopkeepers are having

the age above 40 years. Table 4.4.12 - Occupation wise distribution of the respondents Table describes the occupation wise distribution of the respondents. The categories

like service, business, retired, housewife, farmers and others are selected.

Sr. no. Occupation No. of % of

Respondents response

1. Service 110 55.0

2. Business 047 23.5

3. Student 006 03.0

4. Retired 005 02.5

6. Housewife 032 16.0

7. Farmer 000 00.0

8. Other (please 000 00.0

specify)

Total 200 100.0


- 180 -

Graph 4.4.12 – Pie chart showing occupation wise distributions of the respondents

Pie chart showing occupation wise distributions of

the respondents

16%

Service

Business 55%

23%

Student Retired

Housewife

From the Table, it can be analyzed that 55 % of the respondents shopping only in

SGS sin hypermarkets are doing the service. 23.5 % of the respondents are

Entrepreneurs. 16 % of the respondents are housewives. 3 % of the respondents are

students. Only 2.5 % of the respondents are housewives.

This clearly shows that the customers shopping in hypermarkets are from

entrepreneur‘s category.

Thus, majority of the customers shopping only from SGS are from service category.

- 181 -

Table 4.4.13- Income wise distribution of the respondents shopping only from SGS Table shows income wise distribution of the respondents shopping from both types

of retailers. The income levels from less than 5000 to the maximum income group

of 25K and more are selected at the income level with class interval of 5K.

Sr. no. Income No. of % of response

Respondents

1. less than 5000 023 11.5

2. 5000-10000 064 32

3. 10000-15000 069 34.5

4. 15000-20000 020 10

5. 20000-25000 015 7.5

6. Above 25000 009 4.5

Total 200 100.0

Source: Questionnaire II – Q.5 Graph 4.4.13 – Pie chart showing income wise distribution of respondents

Pie chart showing income wise distribution of respondents shopping only from SGS

5%

11%

8%

10%

Less than 5000

5K-10 K

10 K to 15 k

32%

15-20 K

20 - 25 K

34%

above 25K

From the table it can be analyzed that 34.5 % of the respondents shopping from only

small grocery shop keepers falls in the income group of 10000-15000. 32 % of the

- 182 -

respondents fall in the income group of 5000 to 10000. 11.5 % of the respondents

fall in the category of income group less than 5000 Rs.

Only (7.5 + 4.5) 12 % of the respondents i.e. higher income group customers does

the shopping from small grocery shop keepers.

Low-income groups i.e. Income from 0 to 15000 Rs are the main customers of small

grocery shop keepers. Only 12 % of the customers who are considered as high

income group customers are regular shoppers of the small grocery shopkeepers. Table 4.4.14 - Table showing spending patterns of the respondent‟s shopping from small grocery shop keepers.



1. Less than 1000 106 53

2. 1000-2000 64 32


Total 200 100.0

Source: Questionnaire II – Q.6 Graph 4.4.14 - Pie chart showing spending patterns of the respondent‟s shopping only from small grocery shopkeepers –

Pie chart showing spending patterns of the respondent‟s shopping only from small grocery shop keepers

15%

Less than 1000

1000-2000

53% 32%

From the table it can be analyzed that53% of the customers shopping from small

grocery shop keepers spends less than 1000 Rs on grocery purchase while 32% of

- 183 -

the respondent purchase the grocery in the range of 1000 – 2000 Rs., while 15% of

the customers spends.

Customers spending are more in small grocery shopkeepers. Even because major

strength of small grocery shopkeepers is the trust and loyally they creates in the

mind of the customers. Table 4.4.15 - Table showing frequency of shopping



1. Weekly 94 47

2. Monthly 36 18


4. Yearly 8 4

Total 200 100.0

Source: Questionnaire II – Q.7 Graph 4.4.15 – Pie chart showing distribution of respondents shopping only from SGS according to frequency of shopping

Pie chart showing distribution of respondents shopping only from SGS according to frequency of shopping

4%

31%

47%

18%

Weekly

Monthly

From the table it can be analyzed that to 47% of the customers shops the grocery on

weekly basis. 18% of the customers purchase the grocery on monthly basis, 31%

- 184 -

of the customers shops the grocery fortnightly while 4% of the respondent‘s purchase the grocery on yearly basis from the small grocery shop. Table 4.4.16 – Table showing opinions of customers about continue to shop in the same grocery shop

Sr. Particular No. of % of

no. Respondents response

1. Yes 142 71.0

2. No 58 29.0

Total 200 100.0

Source: Questionnaire II – Q.8 Graph 4.4.16 - Pie chart showing opinion of customers about continue to shop in the same small grocery shop

Pie chart showing opinion of customers about continue

to shop in the same small grocery shop

29%

Yes

No

71%

From the interpretation, it can be seen that 71% of the respondents states that they

will continue to shop from the some small grocery shopkeepers, while 29% of the

respondents have the opinion that they may change the present shop for grocery

purchase.

This shows that majority of the respondents are loyal to wares the small grocery

shops.

- 185 -

Data presentation of demographic of customers shopping only from (Hypermarkets) Table 4.4.17 - Education wise distribution of the respondents – Table shows the level of education of the selected sample. i.e. customers

shopping from hypermarkets –

Sr. No Level of Education No. of Respondents % of Response

1. Undergraduate 22 11 2. Graduate 82 41 3. Post graduate 96 48

Total 200 100.0 Source: Questionnaire III – Q.1

Graph 4.4.17 - Pie chart showing education wise distributions of respondents shopping from hypermarkets only

Pie chart showing education wise distributions of respondents shopping from hypermarkets only

11%

Undergradua te

48%

Graduate

41% From the table, it can be analyzed that 41 % of the respondent shopping from

hypermarkets are graduates while 11 % of the respondents are undergraduates. And

48 % of the respondents are highly qualified i.e. post graduates.

Thus, significant number of respondents from customers shopping from

hypermarkets only is graduates and post graduates.

- 186 -

Table 4.4.18 - Gender wise distribution of the respondents

Table shows the gender of the selected sample i.e. customers shopping from hypermarkets.

Sr. Gender No. of % of Response No Respondents 1. Male 74 37 2. Female 126 63

(Housewives 27, Working 36) Total 200 100.0 Source: Questionnaire III – Q.2

Graph 4.4.18 - Pie chart showing gender wise distributions of the respondents shopping from hypermarkets only

Pie chart showing gender wise distributions of the respondents shopping from hypermarkets only

Male 37%

63% From the table it can be interpreted that 37 % of the respondents are males who

shops from hypermarkets, while 63 % of the respondents are female in this category

of the shoppers.

Thus, the female shoppers are the major customers of hypermarkets. Working

women dominates this category.

- 187 -

Table 4.4.19 - Age wise distribution of the respondents Table indicates the age wise distribution of the respondents in the various age groups varying from the age of 20 to 40 with the class interval of 5 years.

Sr. No Age No. of % of Response Respondents

1. 20-25 years - -

2. 25-30 years 36 18

3. 30-35 years 72 36

4. 35-40 years 78 39

5 above 40 years 14 07

Total 200 100.0


Graph 4.4.19 – Pie chart showing age wise distributions of

respondents shopping from hypermarkets only

Pie chart showing age wise distributions of

respondents shopping0% from hypermarkets only

7% 18%

20-25 years

39%

25-30 years

36%

From the table, it can be analyzed that no customers are in the age in the age group

of 20to 25 years who shop from hypermarkets only While 18% of the respondents

fall in the category of 25 to 30 years of age4 group. 36 % of the respondents

shopping from hypermarkets fall in the category of the age group in between 30 to

35 year. While 39% of the respondents fall in the category of 35 to 40 years of age

group, 07 % of the respondents fall in the category of the age group of 40 and above

years.

Thus, majority of the customers shopping in hypermarkets and small grocery

shopkeepers are in the age group of 30 to 40.

- 188 -

Table 4.4.20 - Occupation wise distribution of the respondents Table describes the occupation wise distribution of the respondents. The categories like service, business, retired, housewives, farmers and others are selected.

Sr. No Occupation No. of Respondents % of Response 1. Service 56 28

2. Business 98 49

3. Retired 000 00.0

4. Housewife 46 23

5. Farmer 000 000

6. Others 000 000

Total 200 100.0

Source: Questionnaire III – Q.4 Graph4.4.20 – Pie chart showing occupation wise distributions of the respondents shopping from hypermarkets only

0% Pie chart showing occupation wise distributions of the respondents shopping from hypermarkets only

0%

23%28%

Service

0%

Business

49%

Retired

From the Table, it can be analyzed that 28 % of the respondents shopping in

hypermarkets are doing the service. 49 % of the respondents are Entrepreneurs. 23

% of the respondents are housewives .

- 189 -

This clearly shows that the customers shopping in hypermarkets are from entrepreneur‘s category.

Table 4.4.21 - Income wise distribution of the respondents shopping from hypermarkets Table shows income wise distribution of the respondents shopping from

hypermarkets. The income levels from less than 5000 to the maximum income

group of 25K and more are selected at the income level with class interval of 5K.

Sr. Asked Question No. of % of Response No about income Respondents

1. Less than 5000 011 5.5

2. 5K-10 K 013 6.5

3. 10 K to 15 k 028 14

4. 15-20 K 045 22.5

5. 20 - 25 K 030 15

6. above 25K 073 36.5

Total 200 100.00

Source: Questionnaire III – Q.5 Graph 4.4.21 – Pie chart showing income wise distribution of respondents shopping only from hypermarkets

Pie chart showing income wise distribution of respondents shopping only from hypermarkets

5%

6% Less than 5000

37%

14%

5K-10 K

10 K to 15 k

15-20 K

23%

20 - 25 K

above 25K

15%

5.5 % of the respondents shopping from hypermarkets fall in the income group of

less than 5000 Rs. 6.5 % of the respondents shopping from hypermarkets fall in the

income group of 5000 to 10,000 Rs.14 % of the respondents shopping from

- 190 -

hypermarkets fall in the income group of 10,000 to 15000. 22.5 % of the

respondents shopping from hypermarkets fall in the income group of 15000 to

20000 Rs. 15 % of the respondents shopping from hypermarkets fall in the income

group of 20000-25000. 36.5 % of the respondents shopping from hypermarkets fall

in the income group of income level more than 25000.

High-income groups i.e. Income above 25000 Rs. are the main customers of

hypermarkets. Only 36.5 % of the customers are regular shoppers of the

hypermarkets. Thus higher income group of the respondents (74 %) are major

customers of hypermarkets.

Table 4.4.22 - Table showing spending patterns of the respondents shopping from hypermarkets



1. Less than 1000 0 0

2. 1000-2000 16 8


Total 200 100

Source: Questionnaire III – Q.6 Graph 4.4.22 – Pie chart showing spending patterns of the respondents

shopping from hypermarkets only

Pie chart showing spending patterns of the respondent‟s shopping0% from hypermarkets only

8%

Less than 1000

1000-2000

92%

- 191 -

From the table it can be analyzed that 8 % of the customers shopping from

hypermarkets spend 1000 to 2000 Rs on grocery purchase while 92 % of the

respondents purchase the grocery greater than 2000 Rs. on the purchase of grocery.

Customers shopping from hypermarkets spend above 2000 Rs. on grocery

purchasing. Table 4.4.23 - Table showing frequency of shopping of the customers shopping from hypermarkets only



1. Weekly 00 000

2. Monthly 172 86


4. Yearly 28 14

Total 200 100.0

Source: Questionnaire III – Q.7 Graph 4.4.23 – Pie chart showing distribution of respondents according

to frequency of shopping

Pie chart showing distribution of respondents according to frequency of shopping

0%

0% 14%

Weekly Monthly Fortnight basis Yearly

86%

- 192 -

From the table it can be analyzed that to 86 % of the customers purchase the grocery

on monthly basis. 14 % of the customers purchase the grocery on yearly basis.

Table 4.4.24 - Preference for organized retailers amongst customers Table illustrates respondent‘s opinion about the preference of the hypermarkets from

customer‘s perspective. Four hypermarkets i.e. Lucky bazaar, Magnet, D Mart, Big Bazaar and Vishal Mega Mart are taken for consideration

Sr. No Preference of No. of % of Response shopping Respondents

1. Lucky Bazaar 76 38 2. D mart 54 27 3. Big Bazaar 58 29 4. Vishal 16 08

Total 200 100.0 Source: Questionnaire III – Q.8

Graph 4.4.24 – Pie chart showing distribution of respondents according to preference of shopping

Pie chart showing distribution of respondents according to preference of shopping

8%

Lucky

37% Bazaar

D mart

28%

Big Bazaar

27%

- 193 -

From the table, it can be analyzed, that the respondents prefer to shop all

hypermarkets.38 % of the respondents prefer to shop from Lucky bazaar while 29 %

of the respondents prefer to shop from Big bazaar 27 % of the respondents shop

from D mart and 8 % of the respondents prefer to shop from Vishal mega mart.

Opinion of customers about different parameters of perception Customer‘s perception is analyzed using different parameters. These parameters are

as follows – Large Inventory – It is nothing but customer‘s view towards the inventory

available in the hypermarkets.

Huge space – It is about the huge space and crowd in the hypermarket and

respective opinions of the customers visiting hypermarkets.

Enjoyment – It is nothing but the enjoyment sensed by the customers while

shopping in the hypermarkets.

Visit only one shop – It is nothing but the view of the customers towards shopping

in only the particular hypermarkets.

Works ethically – It is nothing but customers view about the value systems of the hypermarkets.

Freshness – It is the customer‘s opinion on the freshness of the grocery in the hypermarkets.

Time pass – It is about the customer‘s opinion on shopping as time pass.

Discount on MRP – It is about the customer‘s opinion about the discount offered by the hypermarkets. Cheaper – It is nothing but the customer‘s opinion about the cost of the grocery

products in the hypermarkets.

- 194 -

New price offers – It is about the price changes in the hypermarkets. Discounts at the time of festival – It is about discount offers at the time of the

festivals like 15th

August, 26th

January, Diwali etc. Table 4.4.25 – Opinion of customers shopping from both – organized and unorganized retail trade about different parameters of perception Sr. Agree Disagree Neutral Total


1 Larger

inventories 190 38 265 53 45 9 500 100

2 Huge space

and not

crowded. 340 68 85 17 75 15 500 100

3 Enjoyment. 173 34.6 245 49 82 16.4 500 100

4 Visit only one

organized

retailer 206 41.2 254 50.8 40 8 500 100

5 Works

ethically 165 33 306 61.2 29 5.8 500 100

6 Fresh. 225 45 211 42.2 64 12.8 500 100

7 Time pass. 164 32.8 269 53.8 67 13.4 500 100

8 Discounts on

MRP 191 38.2 255 51 54 10.8 500 100

9 Cheaper 202 40.4 201 40.2 97 19.4 500 100

10 New price

offers 197 39.4 240 48 63 12.6 500 100

11 Discounts at

the time of

festival. 227 45.4 196 39.2 77 15.4 500 100


- 195 -

Graph 4.4.25 – Graph showing opinion of customers shopping from both –

organized and unorganized retail trade about different parameters of

perception Larger Inventories – The customers (62%) are not attracted towards hypermarkets because of larger

inventory. So, the customers are marginally inclined towards the level of

disagreement about this issue. 53% of the customers disagree with this and 9% of

the customers remain neutral on this issue.

Space and not crowded – The customers shopping from both retailers are agreed with the fact that ‗Huge

Space‘ is responsible for attracting customers towards hypermarkets. 68% of the

- 196 -

respondents are agreeing with this while 17% of the respondents disagree with this.

15 % of the customers remain neutral on this issue. Enjoyment – The customers shopping from both retailers tend to be neutral or somewhat disagree

with the fact that shopping from the hypermarket is enjoyment, while 49% of the

respondents are disagree with this and 16.4 % of the customers remain neutral on

this issue. 34.6 % of the respondents are agreed that shopping is enjoyment.

Works Ethically – The customers shopping from both retailers, response (61.2%) is slightly inclined

towards disagreement about the fact that hypermarkets functions ethically. 5.8 % of

the customers are neutral on this issue. 33% of the customers agree with this fact. Fresh – In case of the customers shopping from both retailers, 45% of the respondents agree

on this issue, while 42.2% of the respondents disagree with the fact that

hypermarkets provide fresh grocery. 12.8% of the customers are neutral. Time pass – In case of the customers shopping from both retailers category, the respondents

(53.8 %) are marginally disagreeing towards the fact that shopping is treated as time

pass by the customers shopping from both types of retail trade. 13.4% of the

customers are neutral.

Discounts – In case of the customers shopping from both retailers category, 51 % of the

respondents disagree with the fact that discounts are provided by the hypermarkets.

- 197 -

38.2% of the respondents have the opinion that hypermarkets do provide discounts

on grocery. 10.8 % of the customers are neutral. Cheaper – 40.2 % of the respondents disagree with the fact that grocery products in

hypermarkets are cheaper as compared with small grocery shops. The 40.4 % of the

respondents agree that grocery products from hypermarkets are cheaper. 19.4 % of

the customers are neutral.

New Price offers on weekly basis – In case of the customers shopping from both retailers category ,48 % of the

respondents disagree with the fact that weekly offers are provided to the customers

while 39.4 % of the respondents agree with the fact that weekly offers are provided

for the customers. 12.6 % of the customers are neutral.

Discounts at the time of festival – In case of the customers shopping from both retailers category ,39.2 % of the

respondents disagree with the fact that discounts are provided at the time of festivals

while 45.4 % of the respondents agree that discounts are given at the time of

festival. 15.4 % of the customers are neutral.

- 198 -

Table 4.4.26 – Opinion of customers shopping only from SGS about different parameters of perception Sr. Agree Disagree Neutral Total

No.


1 Larger

inventories 22 11 17 8.5 161 80.5 200 100

2 Huge space

and not

crowded 7 3.5 173 86.5 20 10 200 100

3 Enjoyment 7 3.5 184 92 9 4.5 200 100

4 Visit only one

unorganized

retailer 161 80.5 2 1 37 18.5 200 100

5 Works

ethically 180 90 20 10 0 0 200 100

6 Fresh. 182 91 18 9 0 0 200 100

7 Time pass. 3 1.5 197 98.5 0 0 200 100

8 Discounts on

MRP 190 95 10 5 0 0 200 100

9 Cheaper 190 95 10 5 0 0 200 100

10 New price

offers 189 94.5 11 5.5 0 0 200 100

11 Discounts at

the time of

festival 29 14.5 171 85.5 0 0 200 100


- 199 -

Graph 4.4.26 – Graph showing level of agreement of customers shopping only

from unorganized retail trade about different parameters of perception Larger Inventories In case of the customers shopping only from small grocery shopkeepers category 8.5

% of the respondents states that small grocery shopkeeper have less stock than

hypermarkets while 11% of the respondents states that small grocery shopkeepers

have larger inventories than hypermarkets. 80.5 % of the customers are neutral.

Huge space and not crowded In this category of customers, space does not make (86.5%) any impact on the

buying decision.

- 200 -

Loyalty towards one shop In this category, majority of the customers (80.5 %) are loyal towards one shop

while purchasing grocery. Enjoyment 92 % of the respondents states that they do not visit small grocery shopkeepers for

enjoyment while 3.5% of the respondents visit the small grocery shop keepers for

entertainment. 4.5 % of the customers are neutral. Works Ethically 90% of the respondants state that they visit to grocery shop because it works

ethically about product while 10% people are disagree with this fact. Fresh In case of the customers shopping only from small grocery shopkeeper‘s category, 9% of the respondents strongly disagree about the fact that the grocery products are

fresh while 91% of the respondents state that the grocery products are fresh in small

grocery shops. Time pass In case of the customers shopping only from small grocery shop keepers category,

98.5% of the respondents strongly disagree about the fact that they visit small

grocery shopkeepers for time pass while 1.5% of the respondents visit small grocery

shopkeepers for time pass

- 201 -

Discounts In case of the customers shopping only from small grocery shopkeeper‘s category,

the 95% of the respondents state that small grocery shopkeepers provide the

discount whole 5% of the customers do not think that small grocery shop keepers

don‘t give the discounts.

Cheaper In case of the customers shopping only from small grocery shopkeeper‘s category, 95% of the respondents state that grocery products in small grocery shopkeepers are

cheaper than the prices in the hypermarkets while 5% of the respondents are not

agree with this fact. New Price offers on weekly basis In case of the customers shopping only from small grocery shop keepers category,

94.5% of the respondents state that small grocery shop keepers weekly offers the

price discount while 5.5% of the respondents are not agree with the fact. Discounts at the time of festival In case of the customers shopping only from small grocery shopkeeper‘s category, 85.5% of the respondents have the opinion that small grocery shopkeepers do not

provide the offers on grocery at the time of festival while 14.5% of the respondents

state that festival offers are provided by small grocery shopkeepers.

- 202 -

Table 4.4.27 – Opinion of customers shopping only from organized retail trade (hypermarkets) about different parameters of perception Sr. Agree Disagree Neutral Total

No.


1 Larger

inventories 166 83 25 12.5 9 4.5 200 100

2 Huge space and

not crowded. 157 78.5 31 15.5 12 6 200 100

3 Enjoyment. 126 63 58 29 16 8 200 100

4 Visit only one

organized

retailer 93 46.5 93 46.5 14 7 200 100

5 Works ethically 100 50 89 44.5 11 5.5 200 100

6 Fresh. 39 19.5 149 74.5 12 6 200 100

7 Time pass. 157 78.5 33 16.5 10 5 200 100

8 Discounts on

MRP 110 55 78 39 12 6 200 100

9 Cheaper 120 60 74 37 6 3 200 100

10 New price

offers 147 73.5 41 20.5 12 6 200 100

11 Discounts at the

time of festival. 149 74.5 42 21 9 4.5 200 100


- 203 -

Graph 4.4.27 – Graph showing level of agreement of customers shopping only

from organized related trade about different parameters of perception Larger Inventories

Majority of the customers shopping only from hypermarkets (83%) state that

hypermarkets have larger stock than small grocery shops while 12.5 % of the

respondents states that hypermarkets have less inventories than small grocery shops.

4.5 % of the customers are neutral.

Huge space and not crowded

The percentage response of the customers shopping only from hypermarkets (78.5%) clearly indicates that customers are agreed with the fact that ‗Huge Space‘

- 204 -

is responsible for attracting customers towards hypermarkets. 15.5% of the

respondents are not agreeing with this fact. 6 % of the customers are neutral. Enjoyment In case of the customers shopping only from hypermarkets category, 63 % of the

respondents states that they visit hypermarkets for enjoyment while 29 % of the

respondents do not visit the hypermarkets for enjoyment and 8 % of the customers

remain neutral.

Visits only one particular hypermarket In case of the customers shopping only from hypermarkets catagry,46.5 % of the

respondent states that they visit only one particular hypermarkets for grocery

shopping while 46.5 % of the respondents do not visit the particular hypermarkets

for grocery shopping. 7% of the customers are neutral.

Works Ethically In case of the customers shopping only from hypermarkets catagry, 50% of the

respondants state that they visit to grocery shop because its works ethically about

product while 50% of the respondents are disagree with this fact. Fresh In case of the customers shopping only from hypermarkets category, 74.5 % of the

respondents strongly disagree about the fact that the grocery products are fresh in

hypermarkets while only 19.5% of the respondents state that the grocery products

are fresh in hypermarkets. 6 % of the customers remain neutral.

- 205 -

Time pass In case of the customers shopping only from hypermarkets catagry, 78.5% of the

respondents are agreeing about the fact that they visit hypermarkets for time pass

while only 16.5% of the respondents disagree with the fact that they visit

hypermarkets for time pass. 5 % of the customers are neutral.

Discounts In case of the customers shopping only from hypermarkets category, the 55% of the

customer‘s state that hypermarkets provide the discount whole 39 % of the

customers do not think that hypermarkets give the discounts. 6 % of the customers

are neutral.

Cheaper In case of the customers shopping only from hypermarkets category, 60 % of the

respondents state that grocery products in hypermarkets are cheaper than the prices

in the small grocery shops while 37 % of the respondents are not agree with this

fact. 3 % of the customers are neutral.

New Price offers on weekly basis In case of the customers shopping only from hypermarkets category, 73.5% of the

respondents state that hypermarkets weekly offers the price discount while 26.5% of

the respondents are not agree with the fact. Discounts at the time of festival In case of the customers shopping only from hypermarkets category, 74.5% of the

respondents have the opinion that hypermarkets provide the offers on grocery at the

time of festival while 20.5% of the respondents state that festival offers are not

provided by hypermarkets. 6 % of the customers are neutral.

- 206 -

Opinion of customers about different parameters of attitude Customer‘s attitude towards organized and unorganized grocery retail trade is

analyzed using following parameters –

Well known – It is customer‘s view about the well knowingness in the

hypermarkets (reputation).

Suggested by somebody – It is customer‘s view about shopping from the

hypermarket as someone has suggested about various things about hypermarket.

Proximity – It is the customer‘s opinion about shopping in particular hypermarket

as it is on the way and close to home.

Brighter environment – It is about the customer‘s opinion on shopping from

hypermarkets because of shopping environment.

Products classified properly – It is nothing but customer‘s opinion about

classification of the grocery products in proper way.

Computerized billing – It is the customer‘s opinion about computerized billing.

Prices clearly visible – It is customer‘s view about visibility of prices of the grocery products.

- 207 -

Table 4.4.28 – Opinion of customers shopping from both – organized and unorganized retail trade about different parameters of attitude Sr. Agree Disagree Neutral Total

No.


1 Well known. 376 75.2 84 16.8 40 8 500 100

2 Somebody has

suggested me. 273 54.6 177 35.4 50 10 500 100

3 On the way to my

home 208 41.6 256 51.2 36 7.2 500 100

4 Brightness 317 63.4 109 21.8 74 14.8 500 100

5 Grocery products

classified properly. 331 66.2 145 29 24 4.8 500 100

6 Computerized

billing 309 61.8 164 32.8 27 5.4 500 100

7 Prices clearly

visible. 342 68.4 107 21.4 51 10.2 500 100

Source: Questionnaire I – Q.10 Graph 4.4.28 – Graph showing opinion of customers shopping from both types of retail trade about different parameters of attitude

- 208 -

Well Known In case of the customers shopping from hypermarkets as well as small grocery

shopkeeper‘s category, 16.8 % of the respondents disagree that they visit because

hypermarket is well known. 75.2 % of the respondents agree with the fact that they

visit the hypermarkets because they are well known. 8 % of the customers remain

neutral.

Somebody has suggested In case of the customers shopping from hypermarkets as well as small grocery

shopkeeper‘s category 35.4 % of the respondents disagree with the fact that they

visit because somebody has referred. 54.6 % of the respondents agree with the fact

that they visit the hypermarkets because somebody has referred. 10 % of the

customers remain neutral.

On the way to my home In case of the customers shopping from hypermarkets as well as small grocery

shopkeeper‘s category 51.2% of the respondents disagree with the fact that they use

to shop from hypermarkets because it is on the way, while 41.6% of the respondents

states that they use to shop from hypermarkets because it is on the way. 7.2 % of the


Multiple Counters In case of the customers shopping from hypermarkets as well as small grocery

shopkeeper‘s category 21.8 % of the respondents disagree with the fact that multiple

counters are not the factor of attraction, 51.8 % customers agree that multiple

counters are responsible for attracting the customers. 14.8% of the customers remain

neutral.

- 209 -

Brightness In case of the customers shopping from hypermarkets as well as small grocery

shopkeeper‘s category 29 % of the respondents disagree with the fact that brightness

is the important factor for shopping in grocery trade while 63.4% of the respondents

agree with the fact that brightness is important. 4.6 % of the customers remain

neutral.

Grocery product are classified properly In case of the customers shopping from hypermarkets as well as small grocery

shopkeeper‘s category 24 % of the respondents disagree with the fact that they are

attracted towards hypermarkets because of simple and suitable arrangement of the

products, while 66.2% of the respondents agree with the fact that grocery products

are arranged properly. 4.8 % of the customers remain neutral.

Computerized billing In case of the customers shopping from hypermarkets as well as small grocery

shopkeeper‘s category, 32.8 % of the respondents state that billing is not important

for them while 61.8% of the respondents agree with the fact that proper billing is

important for them. 5.4 % of the customers are neutral.

Prices are clearly visible In case of the customers shopping from hypermarkets as well as small grocery

shopkeeper‘s category, 21.4 % of the respondents disagree with the fact that they visit

hypermarkets because prices on the products are clearly visible, while 68.4% of the

respondents are agree with the fact that they visit the hypermarkets because prices on

the grocery products are easily visible. 10.2 % of the customers are neutral.

- 210 -

Table 4.4.29 – Opinion of customers shopping only from unorganized retail trade (SGS) about different parameters of attitude Sr. Agree Disagree Neutral Total

No.


1 Well known. 0 0 0 0 0 0 0 0

2 Somebody has

suggested me. 21 10.5 179 89.5 0 0 200 100

3 On the way to my

home 6 3 194 97 0 0 200 100

4 Brightness 0 0 0 0 0 0 0 0

5 Grocery products

classified properly. 0 0 0 0 0 0 0 0

6 Computerized

billing 22 11 178 89 0 0 200 100

7 Prices clearly

visible. 199 99.5 1 0.5 0 0 200 100

Source: Questionnaire II – Q.10 Graph 4.4.29 – Graph showing opinion of customers shopping only from unorganized retail trade about different parameters of attitude

- 211 -

Somebody has suggested In case of the customers shopping only from small grocery shop keepers category,

89.5 % of the respondents disagree with the fact that they visit because somebody

has referred. 10.5 % of the respondents agree with the fact that they visit the

hypermarkets because somebody has referred.

On the way to my home In case of the customers shopping only from small grocery shop keepers category,

97% of the respondents shop from small grocery because it is close to their home

while 3 of the respondents are not agreeing with this fact. Multiple Counters In case of the customers shopping only from small grocery shop keepers category

,93.5% of the respondents are disagree that small grocery shop keepers have more

than one counter while 6.5% of the respondents states that small grocery shop

keepers have more than one counter.

Computerized billing In case of the customers shopping only from small grocery shop keepers category

89% of the respondents states that small grocery shop keepers don‘t have

computerized billing system while 11% of the respondents states that small grocery

shop keeper have the computerized billing.

Prices are clearly visible From the table it can be interpreted that (99.5%) of the respondents shops from

small grocery shops because price on the products are clearly visible while only

0.5% of the respondents are not agree with this fact.

- 212 -

Table 4.4.30 – Opinion of customers shopping only from organized retail trade (Hypermarket) about different parameters of attitude Sr. Agree Disagree Neutral Total

No.


1 Well known. 136 68 54 27 10 5 200 100

2 Somebody has

suggested me. 157 78.5 36 18 7 3.5 200 100

3 On the way to

my home 136 68 57 28.5 7 3.5 200 100

4 Brightness 111 55.5 81 40.5 8 4 200 100

5 Grocery

products

classified

properly. 120 60 70 35 10 5 200 100

6 Computerized

billing 152 76 43 21.5 5 2.5 200 100

7 Prices clearly

visible. 167 83.5 25 12.5 8 4 200 100


Graph 4.4.30 – Graph showing opinion of customers shopping from only organized retail trade about different parameters of attitude

- 213 -

Well Known In case of the customers shopping only from hypermarkets category ,68 % of the

respondents agree that they visit to hypermarkets because it is well known and only

27 % of the respondents are disagreeing with the fact that they visit hypermarkets

because it is well known. 5 % of the customers remain neutral.

Suggestions from other person The percentage response (78.5) clearly indicates that customers shopping only from

hypermarkets are agreed with the fact that suggestion from somebody to purchase

from particular hypermarkets is responsible for attracting customers towards

hypermarkets. 18 % of the respondents are not agreeing with this fact and 3.5 % are

neutral.

On the way to my home In case of the customers shopping only from small grocery shopkeepers category, 68

% of the respondents shopping only from hypermarkets state that they prefer

particular hypermarkets because it is close to their home while 28.5 % of the

respondents are not agreeing with this fact. 3.5 % of the respondents remain neutral.

Brightness In case of the customers shopping only from small grocery shop keepers category

55.5 % of the respondents are agree with the fact that hypermarkets have better

atmosphere as compared with small grocery shops .It enhances the stay at

hypermarkets and motivates to purchase more while 40.5 % of the respondents states

that hypermarkets don‘t have proper environment for shopping. 4 % of the

respondents are neutral.

- 214 -

Classification of grocery products In case of the customers shopping only from small grocery shop keepers category,

60 % of the respondents are agree with the fact that hypermarkets have proper

classification of the products which simplifies shopping, while 35 % of the

respondents states that hypermarkets have clumsy arrangements. 5 % of the


Computerized billing From the table it can be interpreted that (76%) of the respondents shops from

hypermarkets because of error free transactions with the use of computerized billing.

while only 21.5 % of the respondents are not agree with this fact. 2.5 % of the


Prices are clearly visible From the table it can be interpreted that (83.7%) of the respondents shops from

hypermarkets because price on the products are clearly visible while only 12.5% of

the respondents are not agree with this fact. 4 % of the respondents are neutral. Opinion of customers about promotional measures – Customer‘s opinion about role of sales promotion towards the grocery retailing is

assessed using following parameters –

Advertisement – It is customer‘s opinion about sales promotional tools like

advertisement used by the hypermarkets in form of leaflets, hoardings and

advertisements in the newspapers.

Weekly offer – Hypermarkets gives weekly offers to the customers. The customer‘s

opinion is assessed about this tool of sales promotion.

Layout – It is the customer‘s opinion about store layout of the hypermarket.

- 215 -

Entertainment – It is the availability of entertainment tools and customer‘s opinion.

Enjoyment – It describes various enjoyment facilities for children.

Products arranged properly – It describes customer‘s opinion about arrangement of all the products.

Credit card – It is the customer‘s opinion about credit card facilities provided to them.

Visualize range all grocery products – It is the customer‘s opinion about visualizing effect of the products from one location. Table 4.4.31 – Opinion of customers shopping from both types - organized and unorganized retail trade

Sr. Agree Disagree Neutral Total


1 Advertisement. 337 67.4 91 18.2 72 14.4 500 100

2

Weekly offers 312 62.4 97 19.4 91 18.2 500 100

3 Layout of the

shop helps me

to search 147 29.4 300 60 53 10.6 500 100

4 Availability of

entertainment 234 46.8 222 44.4 44 8.8 500 100

5 Enjoyment

facilities for

children. 315 63 127 25.4 58 11.6 500 100

6 Products are

arranged

properly. 278 55.6 160 32 62 12.4 500 100

7 Credit card

facility 77 15.4 422 84.4 1 0.2 500 100

8 Gifts given 311 62.2 127 25.4 62 12.4 500 100

9 Visualize

range 260 52 186 37.2 54 10.8 500 100


- 216 -

Graph 4.4.31 - Graph showing opinion of customers shopping from both

types of retail trades about different parameters of sales promotion Role of Advertisement – The customers shopping from both retailers category, 67.4 % of the respondents

state that they have seen any advertisement of the hypermarkets while 18.2 % of the

respondents state that they have not seen the advertisement hypermarkets. 14.4 % of

the customers remain neutral.

Weekly offers – The customers shopping from both retailers category, 62.4 % of the respondents

state that they have seen the weekly offers in promotional tools, while 19.4 % of the

respondents state that they have not seen the weekly offers in promotional tools. 18.2 % of the customers remain neutral.

- 217 -

Layout of hypermarkets – The customers shopping from both retailers category, 60 % of the respondent‘s

states that they are not attracted towards hypermarket because of its layout while

29.4 % of the respondents states that they are attracted towards hypermarket because

of its layout and 10.6 of the customers remain neutral.

Availability of entertainment within hypermarkets – The customers shopping from both retailers category, 44.4 % of the respondents

states that they are not attracted towards hypermarket because of the availability of

entertainment while 46.8. % of the respondents states that they are attracted towards

hypermarket because of the availability of entertainment. 8.8 % of the respondents

remain neutral.

Availability of enjoyment facilities for children – The customers shopping from both retailers category, 25.4 % of the respondents


enjoyment facility for children while 63 .% of the respondents states that they are

attracted towards hypermarket because of the availability of enjoyment facility for

children. 11.6 % of the customers are neutral.

Products are arrange properly – The customers shopping from both retailers category, 32% of the respondents state

that they are not attracted towards hypermarket because of the proper arrangement of

the grocery products while 55.6% of the respondent states that they are attracted

towards hypermarket because of the proper arrangement of the grocery products

12.4 % of the respondents remain neutral on this issue.

- 218 -

Credit card facility – The customers shopping from both retailers category, 15.4 % of the respondents

state that they are attracted towards hypermarket because of the credit card facility

while 84.4 % of the respondents state that they are not attracted towards

hypermarket because of the credit card facility. 0.2 % of the respondents remain

neutral.

Gifts are given – The customers shopping from both retailers category, 25.4 % of the respondents

state that they are not attracted towards hypermarket because of the various gifts

offered while 62.2 of the respondents states that they are attracted towards

hypermarket because of the various gifts offered. 12.4 % of the respondents are

neutral.

Visual range – The customers shopping from both retailers category, 37.2 % of the respondents

states that they are not attracted towards hypermarket because of the better

merchandising while 52 % of the respondents states that they are attracted towards

hypermarket because of the better merchandising. 10.8 % of the respondents remain

neutral.

- 219 -

Table 4.4.32 – Opinion of customers shopping from only from unorganized retail trade (SGS) –


No.


1 Advertisement. 13 6.5 187 93.5 0 0 200 100

2 Weekly offers 0 0 0 0 0 0 0 0

3 Layout of the

shop helps me

to search 0 0 0 0 0 0 0 0

4 Availability of

entertainment 0 0 0 0 0 0 0 0

5 Enjoyment

facilities for

children. 0 0 0 0 0 0 0 0

6 Products are

arranged

properly. 188 94 12 6 0 0 200 100

7 Credit card

facility 0 0 200 100 0 0 200 100

8 Gifts given 21 10.5 179 89.5 0 0 200 100

9 Visualize

range 182 91 18 9 0 0 200 100


- 220 -

Graph 4.4.32 - Graph showing opinion of customers shopping only from

unorganized retail trade about different parameters of sales promotion Role of Advertisement –

The customers shopping only from small grocery shop keepers category ,

93.5 % of the respondents state that they have not seen any advertisement of the

hypermarkets and small grocery shops while 6.5 % of the respondents state that they

have seen the advertisement hypermarkets.

Products are arranged properly –

The customers shopping only from small grocery shopkeeper‘s category, 94 % of the respondents state that they are attracted towards small grocery shops t

because of the proper arrangement of the grocery products while.6 % of the

respondent states that they are attracted towards small grocery shops t because of the

proper arrangement of the grocery products

- 221 -

Credit card facility – All of the respondents states that they are not attracted towards small shops because

they do not give credit card facility. Gifts are given – The customers shopping only from small grocery shopkeeper‘s category, 89.5 % of

the respondents state that they are not attracted towards SGS t because of the various

gifts offered while 10.5 of the respondent states that they are attracted towards small

grocery shops because of the various gifts offered.

Visual range – The customers shopping only from small grocery shopkeeper‘s category, 9 % of the

respondents state that they are not attracted towards SGS because of the better

merchandising while 91 % of the respondents state that they are attracted towards

SGS because of the better merchandising.

- 222 -

Table 4.4.33 – Opinion of customers shopping only from organized retail trade (Hypermarket) –


No.


1 Advertisement. 165 82.5 28 14 7 3.5 200 100

2 Weekly offers 160 80 31 15.5 9 4.5 200 100

3 Layout of the

shop helps me

to search 132 66 57 28.5 11 5.5 200 100

4 Availability of

entertainment 117 58.5 74 37 9 4.5 200 100

5 Enjoyment

facilities for

children. 76 38 117 58.5 7 3.5 200 100

6 Products are

arranged

properly. 164 82 28 14 8 4 200 100

7 Credit card

facility 29 14.5 160 80 11 5.5 200 100

8 Gifts given 25 12.5 166 83 9 4.5 200 100

9 Visualize

range 100 50 86 43 14 7 200 100


- 223 -

Graph 4.4.33 - Graph showing opinion of customers shopping only from

organized retail trade (Hypermarket) about different parameters of

sales promotion Role of Advertisement – The customers shopping only from hypermarkets category, 14 % of the respondents

state that they have not seen any advertisement of the hypermarkets while 82.5 % of

the respondents state that they have seen the advertisement hypermarkets. 3.5 % of

the respondents remain neutral on the issue.

Weekly offers – The customers shopping only from hypermarkets category, 80 % of the respondents

state that they have seen the weekly offers in promotional tools, while 15.5 % of the

respondents state that they have not seen the weekly offers in promotional tools. 4.5 % of the respondents remain neutral on the issue.

- 224 -

Layout of hypermarkets – The customers shopping only from hypermarkets category, 28.5 % of the

respondents states that they are not attracted towards hypermarket because of its

layout while 66 % of the respondents states that they are attracted towards

hypermarket because of its layout. 5.5 % of the respondents are neutral.

Availability of entertainment within hypermarkets – The customers shopping only from hypermarkets category, 37 % of the respondents


entertainment while 58.5 % of the respondents states that they are attracted towards

hypermarket because of the availability of entertainment. 4.5 % of the respondents

remain neutral on the issue.

Availability of enjoyment facilities for children – The customers shopping only from hypermarkets category, 58.5 % of the

respondents state that they are not attracted towards hypermarket because of the

availability of enjoyment facility for children while 38% of the respondents state

that they are attracted towards hypermarket because of the availability of enjoyment

facility for children and 3.5 % of the respondents remain neutral on the issue.

Product arrange properly – The customers shopping only from hypermarkets category, 14% of the respondent

states that they are not attracted towards hypermarket because of the proper

arrangement of the grocery products while 82% of the respondents states that they

are attracted towards hypermarket because of the proper arrangement of the grocery

products. 4 % of the respondents remain neutral on the issue.

- 225 -

Credit card facility – The customers shopping only from hypermarkets category, 80 % of the respondents

states that they are not attracted towards hypermarket because of the credit card

facility while 15% of the respondents states that they are attracted towards

hypermarket because of the credit card facility. 5.5% of the respondents remain


Gifts are given – The customers shopping only from hypermarkets category, 83 % of the respondents

states that they are not attracted towards hypermarket because of the various gifts

offered while 12.5 % of the respondents states that they are attracted towards

hypermarket because of the various gifts offered. 4.5 % of the respondents remain


Visual range – The customers shopping only from hypermarkets category, 43 % of the respondents

states that they are not attracted towards hypermarket because of the better

merchandising while 50% of the respondents states that they are attracted towards

hypermarket because of the better merchandising. 7 % of the respondents are

neutral.

Thus, this section covers all the aspects of the customers in form of demographic

variables and shopping habits with the psychological elements like attitude and

perception. Further, researcher is intended to study various problems and challenges

faced by the retailers.

- 226 -

4.5) Problems faced by grocery retail traders in Kolhapur City

4.5.1) Introduction After gathering the data from organized and unorganized retailers, researcher feels

that retailers are presently facing following problems and if they are not properly

attended, they may become still more important in the future. During the pilot study, researcher understood few more problems, which are stated

by small grocery shopkeepers. These problems are –

1) Small grocery shops keepers also have to pay local tax (LBT) because of

which they can‘t sale the grocery at low rate.

2) Investment of capital is less.

3) No credit is given by wholesalers to small grocery shopkeepers to purchase

the goods.

4) Competition between small grocery shopkeepers who are near to each other.

5) Competition with newly arrived hypermarkets.

6) Increase in electricity rates

7) Increase in interest rate of banks.

8) Increase in real estate rates.

9) Small grocery shopkeepers don‘t have ability to invest more and to maintain

large stock. Therefore, they face problem with the poor inventory.

The SGS and hypermarkets business is becoming so dynamic that their challenges

and problems are unique. The problems do differ according to the formats. All of the

problems are live latest and has great bearing on retailer‘s business.

- 227 -

4.5.2) Problems and challenges before small grocery shopkeepers – Retail industry in Kolhapur city is facing the problems and challenges of unique

nature. The data below shows the problems faced by unorganized retail trade i.e.

small grocery shopkeepers. Data presentation about problems faced by small grocery shopkeepers – Table 4.5.1 - Table showing problems faced by small grocery shopkeepers Table shows various problems faced by small grocery shopkeepers. Further, these

problems are verified amongst the retailers from various wards –

Sr. No. Problem Yes (%) No (%)

1 Local Body Tax (LBT) 100 0

2 No credit by wholesalers 61.78 38.22

3 Problem with capital 93.78 6.22

4 Competition between SGS 72.44 27.56

5 Competition with hypermarkets 14.22 85.78

6 Increase in electricity rates 84 16

7 Increase in rate of banks 64 36

8 Increase in real estate rate 54.67 45.33

9 Poor Inventory 76.44 23.55

Source: Questionnaire IV – Q.9

- 228 -

Graph 4.5.1 – Graph showing opinion of small grocery shopkeepers about problems faced by them

%

Graph showing opinion of small grocery shopkeepers about problems faced by them

120 100 80 60 40 20 0

Loc

al B

ody

Tax

(LB

T)

No

cred

it by

w

hole

sale

rs

Pro

blem

with

cap

ital

Com

petit

ion

betw

een

SGS Comp

etitio

n wi

thhy

perm

arke

ts

Incr

ease

in e

lect

rici

ty

rate

s

Incr

ease

in r

ate

of

bank

s

Incr

ease

in r

eal e

stat

e ra

te

Poo

r In

vent

ory

Problem - >

Yes No

From the table it can be seen that the problem of LBT is faced by all the retailers

from Kolhapur city. 61.78 % of the small grocery shopkeepers are facing the

problem of getting the credit from the wholesalers. 93.78 % of small grocery

shopkeepers are facing the problem of low investment. 72.44 % of small grocery

shopkeepers facing the problem from other small grocery shopkeepers from the

same area. Very few (14.22 %) small grocery shopkeepers only are facing the

problem from hypermarkets. Increasing rate of commercial electricity is major cause

of concern for 84 % of the small grocery shopkeepers. Increase in rate of bank for 64

% of the small grocery shopkeepers. Hike in real estate rates are the major obstacles

in the progress of small grocery shopkeepers (54.67 %). Because of small capital,

small grocery shopkeepers can‘t maintain the large inventory. 76.44% of the

respondents from small grocery shopkeepers category are facing this problem.

- 229 -

Table showing Ward wise data presentation of the various problems faced by small grocery shopkeepers – Table 4.5.2 – Table showing opinion of small grocery shopkeepers about the problem of paying Local Body Tax (LBT) (Total Yes – 225, No – 0)

Sr. No. Ward Yes % No %

1 A 30 100 0 0

2 B 30 100 0 0

3 C 30 100 0 0

4 D 30 100 0 0

5 E 105 100 0 0

Source: Questionnaire IV – Q.9a Graph 4.5.2 – Graph showing opinion of small grocery shopkeepers about the problem of paying Local Body Tax (LBT)

%

Graph showing opinion of small grocery shopkeepers

about the problem of paying Local Body Tax (LBT) 120

100 % 100 % 100 % 100 % 100 % 100

80

60

40

20

0 % 0 % 0 % 0 % 0 %

0

Yes No

A

Ward - >

- 230 -

Introduction of LBT has led to problems not only for retailers but for the customers

as well. The sellers all over the Maharashtra observed a ―Bandǁ protesting against LBT. Their argument is that LBT will increase the tax burden which eventually

leads to increase the prices to the customers. The customers, on their part, think that

introduction of LBT will led to higher prices of the products as the sellers will

include the tax in the price to be charged. Thus, the burden of LBT will passed over

to the customers, causing hardship to them.

All small grocery shopkeepers state that they are facing the main problem of L.B.T.,

because of which selling the goods will become difficult for shopkeepers. All small

grocery shopkeepers from all the wards are facing the L.B.T. problem. Table 4.5.3 – Table showing opinion of small grocery shopkeepers about the problem the problem of getting credit by wholesalers (Total Yes – 139, No – 86) –


1 A 24 80 6 20

2 B 27 90 3 10

3 C 22 73 8 27

4 D 25 83 5 17

5 E 87 83 18 17

Source: Questionnaire IV – Q.9b

- 231 -

Graph 4.5.3 – Graph showing opinion of small grocery shopkeepers about the problem the getting credit by wholesalers

Graph showing opinion of small grocery shopkeepers about the problem of getting credit by wholesalers

%

100

90 %

90 80 % 83 % 83 %

80 73 %

70

60

50

Yes

40

27 %

30

No

20 %

17 % 17 %

20

10 %

10

0

Ward - > The main problem facing the SGS is that they don‘t get credit facility from

wholesalers. Many of these small shopkeepers, contacted by the researcher have a

market standing of more than decade. As such, their credit worthiness is without any

doubt. Even then, the wholesalers are not ready to grant credit facility to these

retailers, creating too different problems for them. One is the shortage of

commodities and other one is the possible situation of stock out.

Small grocery shopkeepers from all wards state that they are facing the problems of

getting the credit of few days from wholesalers. 80 % of the respondents from ward

A state that they are facing the problem of getting the credit. 20 % of the

respondents are having no problem in getting the credit.

90 % of the respondents from ward B state that they are facing the problem of

getting the credit. 10 % of the respondents are having no problem in getting the

credit.

73 % of the respondents from C state that they are facing the problem of getting the

credit. 27 % of the respondents are having no problem in getting the credit.

- 232 -

83 % of the respondents from ward D state that they are facing the problem of

getting the credit. 17 % of the respondents are having no problem in getting the

credit.

83 % of the respondents from E state that they are facing the problem of getting the

credit. 17 % of the respondents are having no problem in getting the credit.

Table 4.5.4 - Table showing opinion of small grocery shopkeepers about the problem of gathering capital (Total Yes – 211, No – 14) –


1 A 27 90 3 10

2 B 23 77 7 23

3 C 18 60 12 40

4 D 21 70 9 30

5 E 98 93 7 7

Source: Questionnaire IV – Q.9c Graph 4.5.4 - Graph showing opinion of small grocery shopkeepers about the problem of gathering capital

%

Graph showing opinion of small grocery shopkeepers about

the problem of gathering capital

100

90 % 93 %

90

77 %

80

70 %

70

60 %

60

50

40 %

Yes

40

30 %

No

30

23 %

20

10 %

7 %

10

0

Ward - > - 233 -

Most of the small grocery shopkeepers are from ordinary middle class families.

They have very little capital of their own. This creates a problem of capital

investment for them. Capital in the form of bank loans is not economically profitable

for these retailers because their profit margin is very small. Other sources of capital

can‘t be tapped as other institutions are doubtful about their ability to repay the loan.

This has put a mere moratorium on the capital investment and subsequently the

possible increase in the business to be transected.

Small grocery shopkeepers from all wards state that they are facing the problems of

gathering the capital for the business so as to invest it in the grocery business.

Small grocery shopkeepers from ward A state that they are facing the problem of

getting the capital.90 % of the respondents are having problems in getting the

capital. 10 % of the respondents are having no problem in getting the capital.

Small grocery shopkeepers from ward B state that they are facing the problem of



Small grocery shopkeepers from ward C state that they are facing the problem of



Small grocery shopkeepers from ward D state that they are facing the problem of



Small grocery shopkeepers from ward E state that they are facing the problem of



- 234 -

Table 4.5.5 - Table showing opinion of small grocery shopkeepers about the problem of competition between SGS (Total Yes – 163, No – 62) –


1 A 23 77 7 23

2 B 9 30 21 70

3 C 26 87 4 13

4 D 22 73 8 27

5 E 42 40 73 60

Source: Questionnaire IV – Q.9d Graph 4.5.5 - Graph showing opinion of small grocery shopkeepers about the problem of competition between SGS


about the problem of competition between SGS

%

100

87 %

90

77 %

80

70 % 73 %

70

60 %

60

50

40 %

Yes

40

No

30 %

27 %

30

23 %

20

13 %

10

0

Ward - > With the passage of time, the no. of small grocery shopkeepers in the markets has

increased considerably. This has led to the intense competition amongst SGS. The

retailers contacted by researcher pointed out that this competition has put restriction

on their volume of trade. Many times it so happens that some retailers follow the

- 235 -

practice of price-cutting for increasing their business. This has further complicated

the situation.

Small grocery shopkeepers are asked about the competition faced by them and they

are concerned about the problem. Small grocery shopkeepers from ward A state that

they are facing the competition from other small grocery shopkeepers.

77 % of the respondents from ward A state that they are facing the competition from

nearby small grocery shopkeepers. 23 % of the respondents are not agree on this

issue.

30% of the respondents from ward B state that they are facing the competition from

nearby small grocery shopkeepers.70 % of the respondents are not agree on this

issue.

87% of the respondents from ward C state that they are facing the competition from

nearby small grocery shopkeepers. 13% of the respondents are not agreeing on this

issue.

73% of the respondents from ward D state that they are facing the competition from

nearby small grocery shopkeepers. 27 % of the respondents are not agreeing on this

issue.

40% of the respondents from ward E state that they are facing the competition from

nearby small grocery shopkeepers. 60 % of the respondents are not agreeing on this

issue.

- 236 -

Table 4.5.6 - Table showing opinion of small grocery shopkeepers about the problem of Competition with hypermarkets (Total Yes – 32, No – 193) –


1 A 6 20 14 80

2 B 9 30 12 70

3 C 10 33 16 67

4 D 7 23 20 77

5 E 70 67 35 33

Source: Questionnaire IV – Q.9e Graph 4.5.6 - Graph showing opinion of small grocery shopkeepers about the problem of Competition with hypermarkets

Graph showing opinion of small grocery shopkeepers about

the problem of competition with hypermarkets

%

90

80 %

77 %

80

70 % 67 %

67 %

70

60

50

40

Yes

30 % 33 %

33 %

30

No

20 % 23 %

20

10

0

Ward - > A major fear expressed by the retailer is related to possible competition from

hypermarkets in future. With the passage of time, impact of globalization and

introduction of FDI in retail sector, it is very likely that the no. of hypermarkets with

- 237 -

support from big corporate houses will increase. This will create a problem for small

retailers because they will not be able to withstand the pressure of this competition.

Small grocery shopkeepers are asked about the competition faced by them from

hypermarkets and they are least concerned. Only small grocery shopkeepers from

ward E are affected by the hypermarkets.

Small grocery shopkeepers from various wards state that they are facing the

competition from other hypermarkets.

20 % of the respondents from ward A state that they are facing the completion from

hypermarkets. 80 % of the respondents are not agreeing on this issue.

30% of the respondents from ward B state that they are facing the competition from

other hypermarkets 70 % of the respondents are not agree on this issue.

33% of the respondents from ward C state that they are facing the competition from

hypermarkets. 67% of the respondents are not agreeing on this issue.

23% of the respondents from ward D state that they are facing the competition from

hypermarkets.77 % of the respondents are not agreeing on this issue.

67% of the respondents from ward E state that they are facing the competition from

hypermarkets. 33 % of the respondents are not agreeing on this issue.

- 238 -

Table 4.5.7 - Table showing opinion of small grocery shopkeepers about the problem of Increase in electricity rates (Total Yes – 189, No – 36) –


1 A 22 73 8 27

2 B 25 83 5 17

3 C 24 80 6 20

4 D 23 77 7 23

5 E 60 57 45 43

Source: Questionnaire IV – Q.9f Graph 4.5.7 - Graph showing opinion of small grocery shopkeepers about the problem of Increase in electricity rates

%

90 80 70 60 50 40 30 20 10 0


about the problem of Increase in electricity rates

83 % 80 %

77 % 73 %

57 %

43 %

27 % 23 %

20 % 17 %

A

Ward - >

Yes No

Electricity has been an essential factor for all retailers. With a steady and at times

stiff rise in the commercial rates of electricity, the retailers are confronted with the

problem of increase expenditure on electricity. Not only this, but the frequent power

cut offs is causing a great concern particularly during the time after 6 p.m. The

- 239 -

retailers feel that the government must take a review of electricity rates of

commercials in order to reduce the burden on small grocery shopkeepers.

Small grocery shopkeepers are asked about the increase in electricity rates and

retailers are aware about the increasing financial burden. Shopkeepers are facing the

problems of increasing rate of electricity for commercials.

73 % of the respondents from ward A state that they are facing the financial burden

because of increase in electricity rates. 27 % of the respondents are not agreeing on

this issue.

83 % of the respondents from ward B state that they are facing the financial burden

because of increase in electricity rates. 17 % of the respondents are not agreeing on

this issue.

80 % of the respondents from ward C state that they are facing the financial burden

because of increase in electricity rate. 20% of the respondents are not agreeing on

this issue.

77% of the respondents from ward D state that they are facing the financial burden


this issue.

57 % of the respondents from ward E state that they are facing the financial burden


this issue.

- 240 -

Table 4.5.8 – Table showing opinion of small grocery shopkeepers about the

problem of Increase in interest rate of banks (Total Yes – 144, No – 81) –


1 A 27 90 3 10

2 B 28 93 2 7

3 C 11 37 19 63

4 D 18 60 12 40

5 E 54 51 51 49

Source: Questionnaire IV – Q.9g

Graph 4.5.8 – Graph showing opinion of small grocery shopkeepers about the problem of increase in interest rate of banks

Graph showing opinion of small grocery shopkeepers about the problem of increase in interest rate of banks

%

100

90 % 93 %

90

80

70

63 % 60 %

60

51 %

50 49 %

37 % 40 %

Yes

40

No

30

20

10 % 7 %

10

0

B

Ward - > - 241 -

The retailers, in order to expand their business seek loans from the banks because

they have no capital of their own. However, a constant increase in the rate of interest

on the bank loans, the retailers are finding it difficult to get sufficient loans from the

banks. They are afraid that they may not be in position to accommodate for a prompt

repayment of bank loans as uncertainty prevails in the market.

Small grocery shopkeepers are asked about the increase in interest rate of banks and

retailers are aware about the increasing bank rates.

90 % of the respondents from ward ‗A‘ state that they are facing the financial

burden because of increase interest rates. 10 % of the respondents are not agreeing

on this issue.

93 % of the respondents from ward B state that they are facing the financial burden

because of increase interest rates. 7 % of the respondents are not agreeing on this

issue.

37 % of the respondents from ward C state that they are facing the financial burden


issue.

60 % of the respondents from ward D state that they are facing the financial burden


issue.

51% of the respondents from ward E state that they are facing the financial burden


issue.

- 242 -

Table 4.5.9 – Table showing opinion of small grocery shopkeepers about the problem of increase in real estate rates (Total Yes – 123, No – 102) –


1 A 10 33 8 67

2 B 12 40 10 60

3 C 24 80 6 20

4 D 13 43 13 57

5 E 79 75 6 25

Source: Questionnaire IV – Q.9h Graph 4.5.9 – Graph showing opinion of small grocery shopkeepers about the problem of increase in real estate rates

%

90 80 70 60 50 40 30 20 10 0


about the problem of increase in real estate rates

80 %

75 %

67 % 60 %

57 %

43 % 40 %

33 %

25 % 20 %

A

Ward - >

Yes No

With a passage of time, the prices of real estate have increased to a very large extent.

This has created a problem for those retailers who want to enter into market or for

those who want to have a more specious shop.

- 243 -

Small grocery shopkeepers are asked about the increase in real estate rates and

retailers are aware about the increasing real estate rates.

33 % of the respondents from ward A state that they are aware of increase in real

estate rates. 67% of the respondents are not agreeing on this issue.

40 % of the respondents from ward B state that they are aware of increase in real

estate rates. 60 % of the respondents are not agreeing on this issue.

80 % of the respondents from ward C state that they are aware of increase in real

estate rates. 20 % of the respondents are not agreeing on this issue

43 % of the respondents from ward D state that they are aware of increase in real

estate rates.. 57 % of the respondents are not agreeing on this issue

75 % of the respondents from ward E state that they are aware of increase in real

estate rates. 25 % of the respondents are not agreeing on this issue Table 4.5.10 – Table showing opinion of small grocery shopkeepers about the problem of poor inventory (Total Yes – 172, No – 53) –


1 A 16 53 14 47

2 B 20 67 10 33

3 C 14 47 16 53

4 D 17 57 13 43

5 E 98 93 7 7

Source: Questionnaire IV – Q.9i

- 244 -

Graph 4.5.10 – Graph showing opinion of small grocery shopkeepers about the problem of poor inventory


about the problem of poor inventory

%

100

93 %

90

80

67 %

70

57 %

60

53 % 53 %

50 47 % 47 %

43 %

Yes

40

33 %

No

30

20

7 %

10

0

Ward - > Small space of small grocery shopkeepers does not allow them to maneuver

efficiently on the floor area. Further, the small space limits the storage area of small

grocery shopkeepers. Eventually, this leads to the poor inventory of small grocery

shops.

Small grocery shopkeepers are asked about the challenges in inventory management

and retailers are aware about it.

53 % of the respondents from ward A state that they are aware of challenges in

inventory management. 47% of the respondents are not aware of this issue.

67 % of the respondents from ward B state that they are aware of challenges in

inventory management. 33 % of the respondents are not aware of this issue.

- 245 -

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