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 - 77 -
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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
- 77 -
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
- 78 -
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
- 80 -
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
SGS Keepers Hypermarket Wholesalers
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
% % %
Respondents Respondents Respondents
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
- 82 -
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
SGS Keepers Hypermarket
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
SGS Keepers Hypermarket Wholesalers
Sr. State of authorities
No. Registration No. of % No. of
% No. of %
Respondents Respondents Respondents
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
SGS Keepers Hypermarket Wholesalers
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
SGS Keepers Hypermarket Wholesalers
Sr. authorities
Particulars
No. No. of % No. of
% No. of %
Respondents Respondents Respondents
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
SGS Keepers Hypermarket Wholesalers
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
customer behavior in terms of taste, belief and loyalty
%
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
customer behavior in terms of taste, belief and loyalty
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
trade in terms of structures, systems and services
%
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
trade in terms of structures, systems and services
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
trade in terms of structures, systems and services
%
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
%
Respondents Respondents Respondents
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
SGS Keepers Hypermarket Wholesalers
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–
SGS Keepers Hypermarket Wholesalers
Sr.
authorities
Particulars
No. No. of % No. of % No. of %
Respondents Respondents Respondents
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
SGS Keepers Hypermarket Wholesalers
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 -
Table 4.1.15 – Table showing response of SGS keepers, hypermarket
authorities and wholesalers about ambience in the retail stores –
SGS Keepers Hypermarket Wholesalers
Sr. authorities
Particulars
No.
No. of % No. of % No. of %
Respondents Respondents Respondents
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
%
Graph showing response of SGS keepers, hypermarket authorities and wholesalers
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
SGS Keepers Hypermarket Wholesalers
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
SGS Keepers Hypermarket Wholesalers
authorities
Sr.
Particulars
No. No. of
No. of
No. of
% % %
Respondents Respondents Respondents
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
Graph showing response of SGS keepers, hypermarket authorities and wholesalers
about credit card facility in the stores
%
120
100 % 100 % 100 %
100
80
60
40
20
0 % 0 %
0 %
0
SGS Keepers Hypermarket Wholesalers
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
SGS Keepers Hypermarket
Wholesalers
authorities
Sr.
Particulars
No. No. of
No. of
No. of
% % %
Respondents Respondents Respondents
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 –
%
Graph showing response of SGS keepers, hypermarket authorities and wholesalers
about credit facility provided by retailers
120
100 % 100 %
100
87.1 %
80
60
40
12.9 %
20
0 %
0 %
0
SGS Keepers Hypermarket Wholesalers
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.
Table 4.1.18 – Table showing response of SGS keepers, hypermarket
authorities and wholesalers about cheapness of grocery goods –
SGS Keepers Hypermarket
Wholesalers
authorities
Sr.
Particulars
No. No. of % No. of
% No. of %
Respondents Respondents Respondents
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
%
Graph showing response of SGS keepers, hypermarket authorities and wholesalers
about cheapness of grocery goods
120
100 %
100 %
100
78.2 %
80
60
40
21.8 %
20
0 % 0 %
0
SGS Keepers Hypermarket Wholesalers
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 –
SGS Keepers Hypermarket Wholesalers
Sr.
authorities
Particulars
No.
No. of No. of No. of
% % %
Respondents Respondents Respondents
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
%
Graph showing response of SGS keepers, hypermarket authorities and wholesalers
about parking facility provided by retailers
120
100 % 100 % 100 %
100
80
60
40
20
0 % 0 % 0 %
0
SGS Keepers Hypermarket Wholesalers
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 –
SGS Keepers Hypermarket Wholesalers
authorities
Sr.
Particulars
No. No. of
No. of
No. of
% % %
Respondents Respondents Respondents
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 %
SGS Keepers Hypermarket Wholesalers
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
SGS Keepers Hypermarket Wholesalers
Sr. authorities
Particulars
No. No. of % No. of
% No. of %
Respondents Respondents Respondents
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
%
Graph showing response of SGS keepers,
hypermarket authorities and wholesalers about proximity factor
120
100 %
100 %
100 91.6 %
80
60
40
20
8.4 %
0 0 % 0 %
SGS Keepers Hypermarket Wholesalers
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
SGS Keepers Hypermarket Wholesalers
Sr. authorities
Particulars
No.
No. of % No. of % No. of %
Respondents Respondents Respondents
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
%
Graph showing response of SGS keepers,
hypermarket authorities and wholesalers about relationship with customers
120
97.33 % 100 % 100 %
100
80
60
40
20
2.66 %
0 % 0 %
0
SGS Keepers Hypermarket Wholesalers
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.
Table 4.1.23 – Table showing response of SGS keepers, hypermarket
authorities and wholesalers about selling the grocery in loose quantity –
SGS Keepers Hypermarket
Wholesalers
Sr. authorities
Particulars
No.
No. of % No. of % No. of %
Respondents Respondents Respondents
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 -
%
Graph showing response of SGS keepers,
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 –
SGS Keepers Hypermarket Wholesalers
Sr. authorities
Particulars
No.
No. of % No. of % No. of %
Respondents Respondents Respondents
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
SGS Keepers Hypermarket Wholesalers
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 –
Sr. SGS Keepers Hypermarket
Wholesalers
No. authorities
Particulars
No. of % No. of
% No. of %
Respondents Respondents Respondents
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 %
SGS Keepers Hypermarket Wholesalers
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.
Table 4.1.26 – Table showing response of SGS keepers, hypermarket
authorities and wholesalers about home delivery facility provided by retailers
Sr. SGS Keepers Hypermarket Wholesalers
No. authorities
Particulars
No. of % No. of
% No. of %
Respondents Respondents Respondents
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
Graph showing response of SGS keepers, hypermarket authorities and wholesalers
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
authorities and wholesalers about discounts facility provided by retailers –
Sr. SGS Keepers Hypermarket Wholesalers
No. authorities
Particulars
No. of
% No. of % No. of
%
Respondents Respondents Respondents
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 -
%
Graph showing response of SGS keepers,
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
SGS Keepers Hypermarket Wholesalers
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 –
SGS Keepers Hypermarket
Wholesalers
Sr. authorities
Particulars
No. No. of % No. of % No. of %
Respondents Respondents Respondents
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 -
Graph showing response of SGS keepers, hypermarket authorities and wholesalers
about advertisement
%
120
100 %
100 %
100
80
69.8 %
60
30.2 %
40
20
0 % 0 %
0
SGS Keepers Hypermarket Wholesalers
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 –
SGS Keepers Hypermarket Wholesalers
Sr. authorities
Particulars
No.
No. of % No. of
% No. of %
Respondents Respondents Respondents
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
%
Graph showing response of SGS keepers, hypermarket authorities and wholesalers
about advantage of place
120
100 %
100 %
100
83 %
80
60
40
17 %
20
0 % 0 %
0
SGS Keepers Hypermarket Wholesalers
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 –
Sr. SGS Keepers Hypermarket
Wholesalers
No.
authorities
Particulars No. of
No. of
No. of
% % %
Respondents Respondents Respondents
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
%
Graph showing response of SGS keepers,
hypermarket authorities and wholesalers about place of purchasing the grocery
120
100 % 100 % 100 %
100
80
60
40
20
0 % 0 %
0 %
0
SGS Keepers Hypermarket Wholesalers
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 –
SGS Keepers Hypermarket Wholesalers
Sr. authorities
Particulars
No.
No. of % No. of % No. of %
Respondents Respondents Respondents
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
Source – Questionnaire IV – Q.7, Questionnaire V – Q.7, Questionnaire VI – Q.76
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.
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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 –
SGS Keepers Hypermarket Wholesalers
Sr. authorities
Particulars
No.
No. of % No. of
% No. of %
Respondents Respondents Respondents
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
Source – Questionnaire IV – Q.8, Questionnaire V – Q.8, Questionnaire VI – Q.8
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
SGS Keepers Hypermarket Wholesalers
Authorities
Type of retailer
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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.
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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.
- 135 -
Table 4.2.2 - Shows the opinion of customers shopping from only unorganized retailers about various service elements
Sr.
No. Agree Disagree Neutral Total
Particulars
Res. % Res. % Res. % Res. %
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
- 136 -
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.
No. Agree Disagree Neutral Total
Particulars
Res. % Res. % Res. % Res. %
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
- 140 -
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.
- 142 -
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.
- 143 -
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.
- 144 -
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.
No. Agree Disagree Neutral Total
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
Source: Questionnaire III – Q.14
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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.
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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
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
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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%
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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
Source: Questionnaire I – Q.3
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%
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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
Source: Questionnaire I – Q.4
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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.
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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
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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
Source: Questionnaire I – Q.6
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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
Source: Questionnaire I – Q.7
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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
Source: Questionnaire I – Q.8
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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
Source: Questionnaire II – Q.1
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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
Source: Questionnaire II – Q.2
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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
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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
Source: Questionnaire II – Q.4
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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.
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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
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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.
Sr. Amt. spend on No. of % of response
no. shopping the grocery Respondents
1. Less than 1000 106 53
2. 1000-2000 64 32
3. Greater than 2000 30 15
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
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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
Sr. no. Frequency of No. of % of
shopping Respondents response
1. Weekly 94 47
2. Monthly 36 18
3. Fortnight basis 62 31
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%
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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.
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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
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.
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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.
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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
Source: Questionnaire III – Q.3
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.
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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 .
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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
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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
Sr. Amt. spend on No. of % of response
no. shopping the grocery Respondents
1. Less than 1000 0 0
2. 1000-2000 16 8
3. Greater than 2000 184 92
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%
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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
Sr. no. Frequency of No. of % of
shopping Respondents response
1. Weekly 00 000
2. Monthly 172 86
3. Fortnight basis 00 000
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%
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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%
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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.
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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
No. Particulars Res. % Res. % Res. % Res. %
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
Source: Questionnaire I – Q.9
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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
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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.
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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.
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Table 4.4.26 – Opinion of customers shopping only from SGS about different parameters of perception Sr. Agree Disagree Neutral Total
No.
Particulars Res. % Res. % Res. % Res. %
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
Source: Questionnaire II – Q.9
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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.
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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
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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.
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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.
Particulars Res. % Res. % Res. % Res. %
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
Source: Questionnaire III – Q.9
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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‘
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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.
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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.
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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.
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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
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
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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
customers remain neutral.
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.
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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.
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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.
Particulars Res. % Res. % Res. % Res. %
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
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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.
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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.
Particulars Res. % Res. % Res. % Res. %
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
Source: Questionnaire III – Q.10
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.
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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
customers remain neutral.
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
customers remain neutral.
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.
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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
No. Particulars Res. % Res. % Res. % Res. %
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
Source: Questionnaire I – Q.11
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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
states that they are not attracted towards hypermarket because of the availability of
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.
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Table 4.4.32 – Opinion of customers shopping from only from unorganized retail trade (SGS) –
Sr. Agree Disagree Neutral Total
No.
Particulars Res. % Res. % Res. % Res. %
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
Source: Questionnaire II – Q.11
- 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.
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Table 4.4.33 – Opinion of customers shopping only from organized retail trade (Hypermarket) –
Sr. Agree Disagree Neutral Total
No.
Particulars Res. % Res. % Res. % Res. %
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
Source: Questionnaire III – Q.11
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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
states that they are not attracted towards hypermarket because of the availability of
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
neutral on the issue.
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
neutral on the issue.
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) –
Sr. No. Ward Yes % No %
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) –
Sr. No. Ward Yes % No %
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
getting the capital.77 % of the respondents are having problems in getting the
capital. 23 % of the respondents are having no problem in getting the capital.
Small grocery shopkeepers from ward C state that they are facing the problem of
getting the capital.60 % of the respondents are having problems in getting the
capital. 40 % of the respondents are having no problem in getting the capital.
Small grocery shopkeepers from ward D state that they are facing the problem of
getting the capital.70 % of the respondents are having problems in getting the
capital. 30 % of the respondents are having no problem in getting the capital.
Small grocery shopkeepers from ward E state that they are facing the problem of
getting the capital.93 % of the respondents are having problems in getting the
capital. 7 % of the respondents are having no problem in getting the capital.
- 234 -
Table 4.5.5 - Table showing opinion of small grocery shopkeepers about the problem of competition between SGS (Total Yes – 163, No – 62) –
Sr. No. Ward Yes % No %
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
Graph showing opinion of small grocery shopkeepers
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) –
Sr. No. Ward Yes % No %
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) –
Sr. No. Ward Yes % No %
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
Graph showing opinion of small grocery shopkeepers
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
because of increase in electricity rate. 23% of the respondents are not agreeing on
this issue.
57 % of the respondents from ward E state that they are facing the financial burden
because of increase in electricity rate. 43% of the respondents are not agreeing on
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) –
Sr. No. Ward Yes % No %
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
because of increase interest rates. 63 % of the respondents are not agreeing on this
issue.
60 % of the respondents from ward D state that they are facing the financial burden
because of increase interest rates. 40 % of the respondents are not agreeing on this
issue.
51% of the respondents from ward E state that they are facing the financial burden
because of increase interest rates. 49 % of the respondents are not agreeing on this
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) –
Sr. No. Ward Yes % No %
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
Graph showing opinion of small grocery shopkeepers
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) –
Sr. No. Ward Yes % No %
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
Graph showing opinion of small grocery shopkeepers
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.