Retailing is a Booming Industry

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Retailing is a booming industry. The next ten years will undoubtedly hold even more changes than

the last decade, (Swapna Pradhan, 2009). The emergence of 24/7 culture has had a strong impact on

the changes occuring in many sectors. The Retailing in India also has to launch 24/7 culture, to

bring changes in the retailing from the past scenario. Moreover, the people who are in the retailing

business should enjoy the fun of sales and marketing. All CEOs should work atleast once in retail

stores of their product groups to understand their customers (Gibson, 2009) tastes and preferences

because, now, the customers are exposing themselves to spend a huge amount of money in

shopping. The consumers spend their money in various formats like, MBOs, EBOs, Malls,

Boutiques, restaurants, discount superstores, e-tailers, etc. These are the different establishments,

where consumers spend their hard-earned money (Chetan Bajaj, 2007). Now, a strong trend is in

favour of the organized retail formats which have been witnessed before, because people are

showing preference for one-stop shops. Now-a-days, customers are also looking for ambience and

convenience in shopping. This would continue more strongly in the next couple of years (Rajnish

Tuli, 2007). In such a case, the MBOs, EBOs, Malls, etc., would be much suited for fulfilling their

luxuries with much more facilities and services.

2.1. Multiple Brand Retailing

The customers could be satisfied only by offering a variety of brands mixed with the different kinds

of services under one roof, which is more possible by having an exposure towards the Multiple

Brand Outlets. The prior research has followed one of the two tracks. It has either addressed both

brand-choice and category purchase incidence decisions in a single category context (Chiang 1991,

Chintagunta 1993) or addressed one aspect of the decision process in a multicategory context,

which is brand choice (Ainslie and Rossi 1998, Erdem 1998) or category purchase incidence

(Manchanda et al. 1999, Chib et al. 2002). However, a drawback of single-category models is that

they ignore cross-category interrelationships by implicitly assuming that the basket utility

maximization reduces to independently maximizing subutilities over each single category.

European Journal of Social Sciences Volume 28, Number 2 (2012)

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Similarly, the implicit assumption in prior multicategory models is that the basket utility

maximization reduces to independently maximizing utilities over brand-choice and category

purchase incidence decisions. (Nitin Mehta, 2007). However, one of the main problems in assessing

the relative efficiency of multiple retail outlets is the fact that customers are essential component of

the "production process" in retailing. Hence, the efficiency of a particular retail store depends both

on the seller's and the buyers' efficiency. While there is often data on each store's inputs to the

production of retail services, the contribution of each store's customers to this process is difficult to

measure, and often goes unmeasured. In the absence of data on variation in customer efficiency

across stores, it is difficult to make comparisons of the relative efficiency of the retailer's operation

across stores. (Wagner. A. Kamakura, 1996). The next focus is assessing the market penetration

opportunities and saturation potential for multi-store, multi-market chain retailers, (Vijay Mahajan,

1988). It also adds that, how the market mix of each brand in each category affects the purchases

across all categories, which can help the retailers make promotional decisions across a portfolio of

products. (Nitin Mehta, 2007). The retailers put in extra efforts to satisfy the customers with all

promotional offers but even then whether the customers could be satisfied, it is unpredictable? Not

only this but also uncertain economic conditions, slowed market growth, and retail over-building in

many geographical areas have combined to direct retailer attention to the issue of market saturation

(Duns Business Month 1986; Mason and Mayer 1987). Finally, it states that, anyone responsible

for managing and marketing a retail brand can learn a lot simply by classifying the retail chains

outlets into types (segments). The development of a set of standard classifications covering all the

branches of all major multiple retailers in Great Britain, the applications include retail site selection,

merchandising, monitoring trends in sales and customer preferences, brand positioning and

competitor analysis. The co-ordination of wide range of activities encompassed in modern branded

retailing (Mark Shaw & Paul Cresswell, 2002). So, the modern retailing includes modern formats to

have a wider focus and coverage on the customers across all the geographical area but inspite of all

this whether the customers are satisfied with the existing formats like, multiple retail outlets are

they are looking for new formats to quench their thirst.



3. Objectives

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Retailing is a Booming Industry