1 “A Study On Impulsive Buying Behaviour Of Customer With Special Reference To Big Bazaar ”REPORT SUBMITTED IN PARTIAL FULFILLMENTOF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (AFFILIATED TO MAHAMAYA TECHNICAL UNIVERSITY,NOIDA)(2010–2012) SUBMITTED TO : SUBMITTED BY:Jitendra Dixit Sir Parvendr SinghM.B.A (Assistant Professor)Roll No. 1006370069 MBA – (4th Sem.)
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As customers taste and preferences are changing, the market scenario is also changing
from time to time. Today‟s market scenario is very different from that of the market
scenario before 1990. There have been many factors responsible for the changing market
scenario. It is the customers changing tastes and preference, which has bought in a
change in the market. Income level of the people has changed; life styles and social class
of people have completely changed now than that of olden days. There has been a shift in
the market demand in today‟s world. Technology is one of the major factors, which is
responsible for this paradigm shift in the market. Today‟s generation people are no more
dependent on hat market and far off departmental stores. Today we can see a new era in
market with the opening up of many departmental stores, hypermarket, shopper‟s stop,
malls, branded retail outlets and specialty stores. In today‟s world shopping is not any
more tiresome work rather it‟s a pleasant outing phenomenon now.
The study is based on a survey done on customers of a hypermarket named big bazaar.Big bazaar is a new type of market, which came in to existence in India since 1994. It is a
type of market where various kinds of products are available under one roof. My study is
on determining the impulsive buying behavior of customer in big bazaar . The study will
find out the current status of big bazaar and determine where it stands in the current
The retail industry in India gathered a new momentum with the establishment of different
international brand outlets, hyper or super markets, shopping malls and departmental
stores.
The organised retail segment in India is projected to be 9 per cent of total retail market by
2015 and 20 per cent by 2020. Hypermarkets would be the largest retail segment,
accounting for 21 per cent of the total retail space by 2013 – 14.
India has one of the largest number of retail outlets in the world. The retail sector is
experiencing exponential growth, with retail development taking place not just in major
cities, but also in Tier-II and Tier-III cities. India's growing population and urbanisationprovides a huge market for organised retail. Growing economic prosperity and
transformation in consumption pattern drives retail demand.
India ranks fourth among the 30 countries that were surveyed in Global Retail
Development Index and ranked sixth in the 2011 Global Apparel Index.
Organized retail in India constitutes a very little share of around 7.8% of the total retail
market. Of that 96% is in the ten biggest cities, and 86% in the biggest six. Through the1990s organized retail added just 1million sq.ft. of space a year. From 2001 onwards, the
pace quickened dramatically and 2003 alone saw an addition of 10 million sq.ft. retail
space. As per the Marketing White book 2009-2010, Indian retail market is estimated at
US$ 280 billion but organized retail is estimated at only US$ 14 billion. The sector
accounts for over 10% of the country's GDP and 8% of total employment of the nation's
workforce. Growth in the retail sector had fuelled a rapid mall building scenario across
the country, with the total number of malls expected to increase to 600 by 2010 from an
estimated 300 by end of 2007. Several retailers, including Indian corporate houses, are
foraying into the retail sector through different formats, unlike foreign retailers who
Supermarkets Extremely large self-service retail outletsOne stop shop catering to
varied consumer needs
Discount
Stores
Stores offering discounts on the retail price
through selling high volumes and reaping
economies of scale
Low Prices
Hyper- mart
Larger than a supermarket, sometimes with a
warehouse appearance, generally located in
quieter parts of the city
Low prices, vast choice
available including
services such as cafeterias.
Convenience
stores
Small self-service formats located in crowded
urban areas.
Convenient location and
extended operating hours.
Shopping
Malls
An enclosure having different formats of in-
store retailers, all under one roof.
Variety of shops available
to each other.
Indian Retail- expanding the number of formats:
In modern retailing, a key strategic choice is the format. Innovation in formats canprovide an edge to retailers. Organized retailers in India are trying a variety of formats,ranging from discount stores to supermarkets to hypermarkets to specialty chains.
Formats Adopted by Key Players in India :
Retailer Original formats Later Formats
RPG Retail Supermarket (Food world)Hypermarket (Spencer's)Specialty Store
Company's Food Bazaar provides a range of food and grocery products ranging from
fresh fruits and vegetables, staples, FMCG products and ready-to-cook products. The
Central offers a chain of stores including books and music stores, global brands in
fashion, sports and lifestyle accessories, grocery store and restaurants. The Pantaloon
retail stores focus largely apparels and accessories.
Pantaloon: Fashion by Pantaloon
Pantaloon is the company's departmental store and part of life style retail format. In fact,
PRIL took its very initial steps in the retail journey by setting up the first Pantaloon store
in Kolkata in 1997. In a short time Pantaloon has been able to carve a special place for it
self in the hearts and minds of the aspirational Indian customers. The company has depth
of offering for both men and women at affordable prices. A striking characteristic of Pantaloon has been the strength of its private label programme. John Miller, Ajile.
Scottsvile, Lombard, Annabelle are some of the successful brands created by the
company. With 13 stores across the country and an ever-increasing stable of private
brands, Pantaloon - in the coming years is poised to become a leading fashion trendsetter.
Big Bazaar: Is se sasta aur acha kahin nahin
Big bazaar is the company‟s foray into the world of hypermarket discount stores, the first
of its kind in India. Price and the wide array of products are the USP‟s in Big Bazaar.
Close to two lakh products are available under one roof at prices lower by 2 to 60 per
cent over the corresponding market prices. The high quality of service, good ambience,
implicit guarantees and continuous discount programmes have helped in changing the
face of the Indian retailing industry. A leading foreign broking house compared the rushat Big Bazaar to that of a local suburban train.
Diversity of product range will ensure profitable volume growth To achieve better return on retail space, PRIL uses certain product categories as margin
managers and certain product categories to generate traffic. The food and groceries
business will act as key volume growth driver while high share of apparel (which account
for over 80% sales in Pantaloon Stores and 40% in Big Bazaar) will enable PRIL to
maintain high margins. The management has demonstrated its ability to improve stock
turnovers in both the formats successfully, which has enabled significant margin
improvement.
Fully integrated value chain and own labels give competitive edge
PRIL has a completely integrated value chain in apparels from fabric manufacturing to
apparel manufacturing, branding, distribution to retailing. The company controls the total
value chain from yarn to apparel retailing and gives a competitive edge in terms of speed
of delivery; lower inventory carrying costs and better realizations. Also, large part of
PRIL‟s apparel revenues comes from own private labels. PRIL has developed significant
competencies in apparel branding over a period of time and has developed own labels
(John Miller, Shrishti, Bare, Annabelle, AFL) in all the apparel product categories.
Worldwide, private labels give higher margin to retailers than the national brands.
Also growth of private labels is faster as retailer controls shelf space and visibility. Other
initiatives such as faster turnover of stocks by introducing 6 seasons in a year (against 2
earlier) has helped in bringing down inventory levels and at the same time providing
wider choice to customer and improving frequency of customer visits.
High scalability of business model – multiplier effect will set in
Size and scale drive economies on procurement and lower logistics costs, which enables a
retailer to deliver better value to customers. The hyper-market format has much higher
scalability as compared to the pure apparel-retailing format. Also, the potential to expand
and scale is virtually unlimited in the food & grocery segment, where efficiencies
improve dramatically with scale as the multiplier effect sets in. Food constitutes the
largest expenditure item (estimated at over 50%) of an average
Indian‟s monthly personal expenditure. However, the share of modern retail formats in
the Rs6700bn Food & Grocery market is a minuscule 0.3%, revealing the high growth
potential in the segment.
New product categories and innovative tie-ups to aid growth
PRIL offers large number of products to the customer to give them better choice for
selection. Different product categories have different depth and width in merchandise
offering. Besides, PRIL has tied up with Shop-in-Shop partners in its Big Bazaar stores.
Some product categories where the company does not have core competency or does not
want to invest, but would attract customers are catered through these partners.
Eventually, in the long run, the Company may manage some of these product categorieson its own as volumes grow and it develops competencies in these businesses.
Shop-in-Shop partners typically pay a fixed rental for their space and share a part of their
profits. By expanding the range of product offerings and retail formats, PRIL today has
been able to target a much larger share of the consumer‟s basket (about 70% as against
less than 8% in 1994).
PRIL will be adding new product categories to its business in both Pantaloons as well as
Big Bazaar stores. Gold, Investment products, White goods and Appliances, Footwear
will be the new product categories that will be added. These product categories will help
in improving Walk In‟s into its stores and generate additional business from the existing
Organised retailing got a leg up during 2008 with the opening of new format stores, rapid
growth of existing players, start-up of new-generation shopping malls, the Government'sintention of allowing a certain level of foreign direct investment in retail and the
formation of a retailers' association. With consumer sentiment positive during most of
2008, it led to substantial spending across a number of categories such as consumer
durables, clothing and lifestyle, automobiles and telecom products. At the beginning of
this decade, organized retailing accounted for a mere $2.9 billion in India. This is only
1.25 per cent of the estimated total retail market. This share has already grown to 2 per
cent. Growth projections for retail business vary widely. Some studies estimate that by
2011, the share of organized retail in the retail pie will jump three times to reach 5-6 per
Impulsive purchasing, generally de fined as a consumer‟s unplanned
purchase which is an important part of buyer behavior. It accounts for as much as
62% of supermarket sales and 80%of all sales in certain product categories. Thoughimpulsive purchasing has attracted attention in consumer research. Unfortunately, there is
a dearth of research on group-level determinants. This research suggests that the
presence of other persons in a purchasing situation is likely to have a normative
influence on the decision to make a purchase. The nature of this influence,
however, depends on both perceptions of the normative expectations of the individuals
who expert the influence and the motivation to comply with these expectations. Peers and
family members are the two primary sources of social influence, often have different
normative expectations. Thus, it has been evaluated two factors that are likely to
affect the motivation to conform to social norms The inherent susceptibility to
social influence and b)The structure of the group Group cohesiveness refers to the
extent to which a group is attractive to its members. The theory proposed by Fishbein
and Ajzen helps conceptualize these effects. This theory assumes that behavior is
a multiplicative function of expectations for what others consider to be socially
desirable and the motivation to comply with these expectations.
Promoting impulse buying behavior
The business implications are fairly obvious. If businesses wish to promote impulse
buying, they should create an environment where consumers can be relieved of their
negative perceptions of impulse. Businesses should stress the relative rationality of
impulse buying in their advertising efforts. Similarly, they should stress the non-
economic rewards of impulse buy
Additionally, businesses can make the environment more complex, further straining
consumers‟ abilities to process information accurately. Such techniques as stocking more
merchandise, creating stimulating atmospherics, and increasing information may be
Impulsive purchasing, generally defined as a consumer‟s unplanned purchase is an
important part of buyer behavior. It accounts for as much as 62per cent of supermarket
sales and 80per cent of all sales in certain product categories. Moreover it can beunderstood from various literature reviews that Indian consumer‟s exhibits impulsiveness
and price consciousness behavioral dimension. Retail consumers tend to purchase
impulsively as they do not plan in advance and they also go for other brand if their
preferred brand is not available in a particular store. They are influenced by the store
brands‟ prices and try them during discounts and if the quality is delivered. In turn the
satisfied customers prefer to visit the retailer again and again. Thus, it could be concluded
that customer loyalty is customer‟s intention to purchase a specific product or services in
future repeatedly and customer loyalty is an important indicator of store health.
Customers can have long-term loyalty to the retail outlets. Long-term loyal customers do
not easily Change their store and product choice. Researchers understand that impulsive
buyers can be converted into loyal customer if they are satisfied. Moreover, it also
understood from that review of earlier studies that though impulsive purchases has
attracted much attention in consumer research, unfortunately there is a dearth of research
on group-level determinants.
Purpose of the Study
The purpose of the research study is to test the association of the independent variables
that are; shopping life style, fashion involvement, pre-decision stage, post-decision stage
regarding consumer purchasing with the dependent variable that is; impulse buying
behavior of consumers who shop in the Big Bazaar.
OBJECTIVES To analyse the buying behavior of the consumers‟ of Big Bazaar.
To measure the level of satisfaction derived by the shoppers at Big Bazaar.
To assess the future relationship between the retailer and his customers.
containment of impulse and delay of gratification versus an insufficient modulation of
impulse and an inability to delay gratification. Controllers are reflective, cautious,
careful, rational, and sensible. They like to plan their activities (Tellegen 1982). On the
contrary, impulse-ridden individuals are spontaneous, reckless, and careless; they prefer
to "play things by ear." Their decisions are made rapidly and their emotional fluctuations
are readily visible. They tend toward immediate gratification of their desires even when
such gratification is inconsistent with the reality of their situation or their own ultimate
goal.
Impulse buying may be one manifestation of this personality trait Representing a lack of
control. Preferring planned-out activities seem to be counter to prior definitions of
impulse buying. Control would also run counter to Hoch and Loewenstern‟s conceptualization of impulse buying since it should provide people with the ability to
maintain high levels of willpower. A generalized lack of control or impulsivity would
therefore seem to be a potential contributor to impulse buying behaviors.
Cues That Trigger Impulse Buying
Many different factors have been suggested as triggering the impulse to purchase. By and
large, triggers are divided into two types Externals cues and internal cues (Wansink
1994). External cues are specific triggers associated with buying or shopping. They
involve marketer-controlled environmental and sensory factors. Internal cues refer to
consumers‟ self -feelings, moods, and emotional states.
Recent studies have stated that atmospheric cues in the retail environment (i.e., sights,
sounds, and smells) are important triggers that can influence a desire to purchase
impulsively (Eroglu and Machleit 1993; Mitchell 1994). Also it has been suggested that
marketing innovations such as credit cards, cash machines, instant credit, 24-hour
retailing, and telemarketing make it easier than ever before for consumers to buy things
on impulse (Rook 1987; Rook and Fisher 1995). Additionally, marketing mix cues such
as point-of-purchase, displays, promotions, and advertisements also can affect the desire
Consumers‟ emotions or affective states have been regarded as potent internal triggers for
impulse buying. It is speculated that impulsive buyers are more likely to be responsive
(or sensitive) to their emotional conditions than non-impulsive buyers (Rook and Gardner1993). For impulsive buyers, their affective state can stimulate pursuit of the immediate
gratification that buying provides. In fact, recent work has proposed that buying impulses
may be partially motivated by a desire to change or manage emotions or mood states
(Gardner and Rook 1988; Rook 1987; Rook and Gardner 1993). Impulse buyers were
found to be more likely to buy on impulse in both negative moods and positive moods
than non-impulse buyers. The results suggest that impulse buyers are more prone to act
when experiencing hedonically charged moods regardless of their direction. Thus, it is
expected that both positive and negative affective states are closely ted to the tendency to
engage in impulse buying.
Most early efforts to study impulse buying behavior - those before 1987 - were concerned
with definitional issues and attempted to classify impulse into one of several sub-
categories, rather than to understand why so many consumers appear to act on their
buying impulses so frequently. This concern with developing classificational schemata
has generated a body of research that ignores the behavioral motivations leading to
impulse buying behavior for a large variety of products and instead focuses on a small
number of relatively inexpensive products. More recent studies have reported impulse
purchases across a broad range of product offerings in a variety of price ranges (Cobb
and Hoyer, 1986; Rook, 1987; Rook and Fisher, 1995). The pervasiveness of impulse
buying, even for relatively expensive products, is counter-intuitive and has led to a few
preliminary studies looking at impulse buying as an inherent individual trait, rather than a
Technology and customers tastes and preferences plays a vital role in today‟s generation.
Research Methodology is a set of various methods to be followed to find out various
information‟s regarding market strata of different products. Research Methodology is
required for every industrial service industries for getting acquire knowledge of their
products.
RESEARCH DESIGN
Considering this work as a basic research, this study has followed descriptive researchdesign. An attempt is made in this study to understand an association between the
impulsive purchase made by the customers visiting a store and their association with the
concept of customer satisfaction. Data were collected from the potential customers of big
bazaar Mathura, Uttar Pradesh, India.
DATA COLLECTION
This study both primary & secondary data were collected for the study.
Primary Data
A questionnaire was designed to collect the primary data from the customers of BigBazaar ,Mathura.
Secondary Data
Articles on impulse buying were studied.
Measurement Technique
A questionnaire was designed by the researchers to be administered during the personal
interview. Care was taken to avoid loaded, double barreled, biased questions.