Dept -Proj. Report

A

RESEARCH REPORT

ON

“A Study on Customer’s Attitude towards Departmental Stores in

Bhilai city”

Submitted in partial fulfillment for the award of the degree

Master Business Administration

Of

Chhattisgarh Swami Vivekanand Technical University, Bhilai

Submitted By:

PRASHANT SONDHIYA

MBA- SEMESTER II

Session 2009-11

Approved By: Guided By:

Mr. Manoj Sharma Mr. Dalvinder Singh Wadhwa

(Reader, SSIPMT ) (Lecturer, MBA Dept.)

Shri Shankaracharya Institute of Professional Management and Technology

SSIPMT/MBA/PRASHANT SONDHIYA Page 1

Raipur (C.G.) P.O.: Sejabahar, Mujgahan

DECLARATION

I the undersigned solemnly declare that the report of the thesis work

entitled “A study on customer’s attitude towards departmental stores in Bhilai city”

is based on my own work carried out during the course of my study.

I assert that the statements made and conclusions drawn are an outcome of

my research work. I further declare that to the best of my knowledge and belief the report

does not contain any part of any work which has been submitted for the award of MBA

degree or any other degree/diploma/certificate in this university or any other university of

India or abroad.

PRASHANT SONDHIYA

MBA 2nd SEM

Enrollment No.:- AE -7084


CERTIFICATE

This is to certify that the work incorporated in the thesis “A Study on Customer’s Attitude

towards Departmental Stores in Bhilai city” is a record of research work carried out by Prashant

Sondhiya bearing Enrollment No.- AE 7084 Under my/our guidance and supervision for the part

fulfillment for the award of MBA Degree of Chhattisgarh Swami Vivekanand Technical University,

Bhilai (C.G.), India.

To the best of my knowledge and belief the thesis

i) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

iii) Is up to the desired standard both in respect of contents and language for external viva.

Mr. Dalvinder Singh Wadhwa

(Lecturer, SSIPMT)


ACKNOWLEDGEMENT

Completing a task is never one man’s effort; it is often the result of invaluable contribution of no. of

individuals indirect or indirect way in shaping success on achieving it. I use this opportunity to

acknowledge all the help and support I got from the various quarters without which this project

would never have fructification.

I thanks Mr. Yayati Barua for his endeavour, encouragement and invaluable guidance throughout

the project work. I extend my deepest sense of gratitude to Mr. Nitin Jain who is a true mentor,

actively interested in my work and full of suggestions and comments. I am also extremely grateful

for the suggestion and inputs provided by Miss. Sapna Kochhar, Mr. Dalvinder Singh Wadhwa

& Miss Abhilasha at various stages. In short, the direction received from the faculty of our

SSIPMT Raipur was vital and I do not have words to adequately express my gratitude.

I would also like to thank my Team for their efforts and encouragement, and most of all for making

this project a great experience.

I would like to thank our Director, Mr. Nishant Tripathi for his never ending support and

motivation. He make us understand the nitty-gritty’s of a research and for being so kind and

humble to us.

Finally I thank all the respondents, friends and other people for providing their valuable opinion and

helping me in successful completion of the project.

Date:- Prashant Sondhiya

Place:- Raipur MBA II SEM (SSIPMT)


TABLE OF CONTENTS

S.No. TOPICS Page No.

1. Executive Summary

1.1 Background study

1.2 Modern Retail Format in India

8

11

14

2. Departmental Stores in Bhilai & Raipur 19

3. Literature review

3.1 Factors that influence Buyer Behaviour

3.2 Key findings till now

22

26

29

4. Research methodology

4.1 Project Brief

4.2 Research Plan

4.2.1 Collection of Quantitative Data

4.2.2 Sampling Process

33

36

37

37

39

5. Data Analysis and Interpretation

5.1 Demographic Information

5.2 Analysis and Interpretation

41

42

46

6. Results

6.1 Findings

6.2 Recommendations

6.3 Limitations

6.4 Conclusion

59

60

61

62

7. Bibliography

Questionnaire used

63

64


A Study on Customer’s Attitude towards Departmental Stores in Bhilai city ______________________________________________________


CHAPTER I


1. EXECUTIVE SUMMARY

Gone are the days were the consumer went in search of materials from shop to shop. Today, things

are made available in one shop, one place. These days, consumer buying is not mere transfer of item

from seller to buyer. Consumer wants buying to become a happy affair. They would like to see,

touch and feel the commodities that they buy. Understanding this psychology for the consumer

many organizations have come to make purchase of happy affair.

India is witnessing an unprecedented consumption boom. The economy is growing between 8 to 10

percent and the resulting improvements in income dynamics along with factors like favorable

demographics and spending patterns are driving the consumption demand. Indian Retail Industry is

ranked among the ten largest retail markets in the world. The attitudinal shift of the Indian consumer

in terms of "Choice Preference", "Value for Money" and the emergence of organized retail formats

have transformed the face of Retailing in India. The Indian retail industry is currently estimated to

be a US$ 200 billion industry and organized Retailing comprises of 3 per cent (or) US$6.4 Billion

of the retail industry. With a growth over 20 percent per annum over the last 5 years, organized

retailing is projected to reach US$ 23 Billion by 2010.

The Indian retail industry though predominantly fragmented through the owner -run " Mom and Pop

outlets" has been witnessing the emergence of a few medium sized Indian Retail chains, namely

Pantaloon Retail, RPG Retail, Shoppers Stop, Westside (Tata Group) and Lifestyle International. In

the last few years, Indians have gone through a dramatic transformation in lifestyle by moving from

traditional spending on food, groceries and clothing to lifestyle categories that deliver better quality

and taste. Modern retailing satisfies rising demand for such goods and services with many players

entering the bandwagon in an attempt to tap greater opportunities.


Driven by demographic changes including rising double digit income levels and a rapidly expanding

middle class, the Indian retailing sector is at an inflexion point where the growth of organized

retailing and growth in the consumption by the Indian population is going towards a higher growth

trajectory. Burgeoning Indian population, particularly the middle class and the rural segments,

presents an opportunity to makers of branded products to convert consumers to branded products.

Retailing in India is at a nascent stage of is evolution, but within a very short time certain trends

similar to global experiences are clearly emerging. Retailing which covered diverse products such as

food, apparels, consumer goods, financial services and lifestyle goods is gradually replacing the

individual small stores with big chain stores.

With shopping attitudes of people changing, organized retail markets today desires for value added

products and services with good ambience and brands, which only a retailer can provide, making

future growth difficult for the small retail sector.

The Indian retailing sector is largely fragmented and hampered by a lack of adequately developed real

estate, a shortage of trained and specialized human capital, weak labor laws, and frail logistics and

supply chain systems.

The Indian retail industry accounting for more than 10% of India's GDP, is likely to be driven by

increasing incomes, growing exposure to overseas markets, increased' lifestyle spending' and higher

mobility.

Also, government has relaxed regulatory controls on foreign direct investment (FDI) considerably in

recent years, while retailing currently remains closed to FDI. However, the Indian government has

indicated in 2005 that liberalization of direct investment in retailing is under active consideration. It

has allowed 51% FDI in “single brand” retail.


The next cycle of change in Indian consumer markets will be the arrival of foreign players in

consumer retailing. Although FDI remains highly restricted in retailing, most companies believe that

will not be for long. Indian companies know Indian markets better, but foreign players will come in

and challenge the locals by sheer cash power, the power to drive down prices. That will be the

coming struggle.

According to the report of American Management Consulting Firm A. T. Kearney's 2006 Global

Retail Development Index (GRDI), India is on the first position , continuing for two years (2005 and

2006), among 30 countries as the world's most attractive market for mass merchant and food

retailers seeking overseas growth. On the other hand, China is loosing its attractiveness and making

the way to India GRDI helps retailers to prioritize their global development strategies by ranking

emerging countries based on a set of 25 variables including economic and political risk, retail

market alternatives, retail saturation level, and the difference between gross domestic product

growth and retail growth. The study quotes: "The Indian retail market is gradually but surely

opening up, while China's market becomes increasingly saturated."


1.1 BACKGROUND STUDY

Background study, as has been mention earlier, forms in important part of our research. Various

books, database and online resources were explored to enhance our understanding of industry, the

company and the pricing concepts.

Department stores are places where you can find everything you need. And by "everything" means

clothes, shoes, perfumes, and even home furnishings. The rise of department stores has made

shopping easier and more convenient for most people. We no longer have to travel far and wide

because these places have materialized everywhere in various countries. And since there are abundant

sources of these shops, searching for the perfect shopping centre has been a tad tricky for the eager

shoppers.

Shopping In Two conduct

Years ago, shopping was a task that can only be completed through personal visits to stores. There

were only a limited number of stores to purchase the people's wants and needs. Shoppers also used to

pay for the merchandise through cash. But today, shopping has become a complex yet easy process

for most people. Because of the rise in the number of department stores and the various ways to shop

for the things you need, shopping has become a simpler task for everyone.

Department store shopping can now be done through personal or online visit. Shopping personally for

the items you need would require you to visit several shops. Many prefer this type of shopping

because they can have a personal view of the items they need.

Regardless of the way people shop, they need to have access to the various department stores nearest

to their areas. And because we deem this essential for your convenience, Department Stores Locally


is providing you access to the best shops situated in UK. Take a peek at the smallest to largest

department stores within your vicinity by browsing this site. You will definitely have ways to contact

the department stores that can provide everything you need.

MARKETING

Marketing is more important as it relates to consumer and their needs, whatever may be the objectives

of business, the main in which it has to concentrate will be marketing. Business today, concentrating

on marketing is found to be fairly successful though success depends on many other factors. The

purchase decision being an essence is an important aspect of marketing. Consumers are liable for

influence under different environment.

Under these circumstances a study has been conducted to analysis the preference of consciences

towards departmental stores. Channel of distribution is also called marketing channel or trade

channel, are used to provide consumer with a convenient means of obtaining the products and

services they desire. Thus, the route or path through which goods more from the place of production

to the place of consumption is called channel to distribution. There are various persons or business

consumer such as middlemen consisting of wholesalers and retailers.

DEPARTMENTAL STORES

A departmental store, a retail trade shop, was started at strategic place to please the customer by

giving him the choice of selecting all that he wants. Every business is based on understanding the

consumer and providing the kind of products that the consumer want every businessman today makes


some effort to convince the consumer for buying a product in a particular shop and for this reason, the

researcher has under taken a survey as to why they prefer departmental store?

What are the reasons for their purchase at a departmental store? What makes them to select

departmental stores? Those other forms of retails outlet in Bhilai city.


1.2 Modern Retail Formats in India

Hypermarket

Typically varying between 50,000 sq. ft. and 1, 00,000 sq. ft., hypermarkets offer a large basket of

products, ranging from grocery, fresh and processed food, beauty and household products, clothing

and appliances, etc. The key players in the segment are: the RPG Group's Giant (Spencer’s)

hypermarkets, and Pantaloon Retail's Big Bazaars.

Cash-and-carry

These are large B2B focused retail formats, buying and selling in bulk for various

commodities. At present, due to legal constraints, in most states they are not able to sell fresh produce

or liquor. Cash-and-carry (C&C) stores are large (more than 75,000 sq. ft.), carry several thousand

stock-keeping units (SKUs) and generally have bulk buying requirements. In India an example of this

is Metro, the Germany-based C&C, which has outlets in Bangalore and Hyderabad.

Department Store

Department stores generally have a large layout with a wide range of merchandise mix, usually in

cohesive categories, such as fashion accessories, gifts and home furnishings, but skewed towards

garments. These stores are focused towards a wider consumer audience catchment, with in-store

services as a primary differentiator. The department stores usually have 10,000 - 60,000 sq. ft. of

retail space. Various examples include:


(i) Shoppers' Stop, controlled by the K. Raheja Group, a pioneering chain in the country's

organized retail;

(ii) Pantaloons, a family chain store, which is another major player in the segment;

(iii) Westside, the department store chain from Tata Group's Trent Ltd;

(iv) Ebony, a department store chain from another real estate developer, the DS Group;

(v) Lifestyle, part of the Dubai-based retail chain, Landmark Group;

(vi) The Globus department and superstore chain.

Supermarket

Supermarkets, generally large in size and typical in layouts, offer not only household products but

also food as an integral part of their services. The family is their target customer and typical examples

of this retailing format in India are Apna Bazaar, Sabka Bazaar, Haiko, Nilgiri's, Spencer’s from the

RPG Group, Food Bazaar from Pantaloon Retail, etc.

Shop-in-Shop

There is a proliferation of large shopping malls across major cities. Since they are becoming a major

shopping destination for customers, more and more retail brands are devising strategies to scale their

store size in order to gain presence within the large format, department or supermarket, within these

malls. For example, Infinity, a retail brand selling international jewellery and crystal ware from

Kolkata's Magma Group, has already established presence in over 36 department chains and

exclusive brand stores in less than five years. Shop-in-shops have to rely heavily on a very 95


efficiently managed supply chain system so as to ensure that stock replenishment is done fast, as there

is limited space for buffer stocks.

Specialty Store

Specialty stores are single-category, focusing on individuals and group clusters of the same class,

with high product loyalty. Typical examples of such retail format are: footwear stores, music stores,

electronic and household stores, gift stores, food and beverages retailers, and even focused apparel

chain or brand stores. Besides all these formats, the Indian market is flooded with formats labeled as

multi-brand outlets (MBOs), exclusive brand outlets (EBOs), kiosks and corners, and shop-in-shops.

Category Killers – Large Specialty Retailers

Category killers focus on a particular segment and are able to provide a wide range of choice to the

consumer, usually at affordable prices due to the scale they achieve.

Examples of category killers in the West include Office Mart in the US. In the Indian context, the

experiment in the sector has been led by “The Loft”, a footwear store in Powai, Mumbai measuring

18,000 sq. ft.

Discount Store

A discount store is a retail store offering a wide range of products, mostly branded, at discounted

prices. The average size of such stores is 1,000 sq.ft. Typical examples of such stores in India are:

food and grocery stores offering discounts, like Subhiksha, Margin Free, etc. and the factory outlets

of apparel and footwear brands, namely, Levi’s factory outlet, Nike’s factory outlet, Koutons, etc.


Convenience Store

A convenience store is a relatively small retail store located near a residential area (closer to the

consumer), open long hours, seven days a week, and carrying a limited range of staples and groceries.

Some Indian examples of convenience stores include:

In & Out, Safal, amongst others. The average size of a convenience store is around 800 sq. ft.


CHAPTER II


2. Departmental Stores in Bhilai & Raipur

Anmol Super Bazaar :

Anmol super bazaar was started in 2003 in Bhilai, the owner of the

departmental store is Mr. Paras Chand Chauradiya. They are the mainly selling the products of

HUL, ITC & Ponds companies. Its present manager is Mr. Subodh Shukla.

Address: Chouhan Estate Near Chandra Mourya Takies, Supela Bhilai (C.G.)

Apna Super Bazaar

Address: New Civic Center , Bhilai (C.G.)

Tripti Super Bazaar

Address: Nehru Nagar Near BSR Hospital Bhilai (C.G.)

Big Bazaar, Raipur

Big Bazaar, a part of the Pantaloon Group, is a hypermarket offering a huge array of goods of good

quality for all at affordable prices. Big Bazaar with over 50 outlets in different parts of India is

present in both the metro cities as well as in the small towns. Big Bazaar has no doubt made a big

name in the retail industry of India; moreover shopping here is further made a memorable experience

with the varied rates of discounts on products as well as discount vouchers available in a variety of

amounts

Raipur, India, July 19, 2007 - Pantaloon Retail (India) Limited, a part of the Future Group, today

announced its entry in the State of Chhattisgarh with the opening of it’s largest chain of hypermarket

store – BIG BAZAAR – in Raipur city. Widely known for it’s unbelievable pricing and unmatched


offers throughout the year, the popular Big Bazaar will cater to the entire household needs of the

citizens of Raipur city.

Vishal Mega Mart, Raipur

Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price ranges.

The showrooms have over 70,000 products range which fulfills all your household needs, and can be

catered to under one roof. It is covering about 29, 90, 146 sq. ft. in 24 states across India. Each store

gives you international quality goods and prices hard to match. The cost benefit that is derived from

the large central purchase of goods and services is passed on to the consumer.

Westside, Raipur

The Westside stores have numerous departments to meet the varied shopping needs of customers.

These include Menswear, Women’s wear, Kid’s wear, Footwear, Cosmetics, Perfumes and

Handbags, Household Accessories, lingerie, and Gifts. The company has already established 41

Westside departmental stores (measuring 15,000 - 30,000 square feet each) in Raipur (C.G)

Ahmedabad, Bangalore, Chennai, Delhi, Gurgaon, Ghaziabad & Noida (to be considered as 1 city),

Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur, Nashik, Pune,

Rajkot, Surat, Vadodara and Jammu. The company hopes to expand rapidly with similar format stores

that offer a fine balance between style and price retailing.


CHAPTER III


3. LITERATURE REVIEW

STATEMENT OF PROBLEM

The study of the consumer behaviour enable us to analysis one’s own decision in buying. The very

look of the departmental store attracts people, the way in which products are visited not only to buy,

but also spend sometimes in the cafeteria and to enjoy the atmosphere, the consumer takes a look to

choose the product and understands the inferential as well as the external factors. This is done in a

clean unpolluted atmosphere in departmental store. It is a matter for study as to why people come and

buy from a departmental store.

ATTITUDE

“Attitudes are evaluative statement either favourable or unfavourable concerning objects, people or

events.They reflect how one feels about something. When I say I like my job, I am expressing my

attitude about work.” ….Stephens P. Robins

“An attitude can be defined as a persistent tendency to feel and behave in a particular way toward

some object.” ….Luthans

Components of Attitude :

1. Cognitive component : The opinion or belief segment of an attitude.

2. Affective component: The emotional or feeling segment of an attitude.

3. Behavioural component: Refers to an intention to behave in a certain way towards someone or

something.

Attitude can be formed by the following:

1. Conditioning

2. Direct experience


3. Social learning

Functions of Attitude:

a. Adjustment

b. Ego-defensive

c. Value Expressive

d. Knowledge

e. Attitude formation

CONSUMER BEHAVIOUR

Consumer behaviour is defined as that behaviour exhibited by people in planning, purchasing and

using economic goods and services. Buyers behaviour is the process by which individuals decide

whether, what, when, where, how and from whom to purchase goods and services.

“Instead of trying to market what is easier for us to make, we must find out much more about what

the consumer is willing to buy – we must apply our creativeness more intelligently to people, and

their wants and needs rather than to product” – Charles G. Martina emphasizing on the above

statement, the target of all marketing activities should be consumers. The firms have to device plans

and implement them so as to achieve consumer satisfaction. This calls for an analysis of how

consumer behaves in the market place. Buyer behaviour may be viewed as an orderly process

whereby the individual interacts with his environment for the purpose of making market decisions on

products and services


Thus, the chief characteristics of buyer behaviour are:

1. It includes observable physical activities, such as walking through the market to examine the products

and in making a purchase, and mental activities – such as forming attitudes, perceiving advantages

materials and learning to prefer a particular brand. The consumers apply both the activities to acquire

goods and services and obtain satisfaction from them.

2. Consumer behaviour is a complex and dynamic concept, too constantly changing, and therefore

management need to adjust with the change, otherwise the market may be lost.

3. The individual’s specific behaviour in the market place is affected by interval factors such as needs,

motives, perception and attitudes as well as by external or environmental influences such as the

family, social groups, cultural, economic and business influences.

To achieve a better understanding of the consumer behaviour, study of those disciplines, which may

provide some explanations as to “why people behave as they do” is required. The internal and

external forces and influences interact in highly complex ways, affecting the individual’s total pattern

of behaviour as well as his buying behaviour.

EVALUATION OF ALTERNATIVES

A consumer uses information to arrive at a set of final brand choices. The question is, how does the

consumer choose among the alternative brands in the choice set? He evaluates the various alternatives

available in the market on the basis of certain attributes. There is no simple and single evaluation

process used by all consumers or by one consumer in all buying situations. The attributes of interest

to buyer vary by product, their need, quality, style, etc.


PURCHASE DECISION

Having evaluated the purchase alternatives, he has to decide whether to buy or not to buy. If he has

decided to buy, then he has to take decisions regarding the brand, the quantity of purchase, the place

of purchase and the mode of payment to the made.

POST PURCHASE BEHAVIOUR

After purchasing the product, the consumer will experience some level of satisfaction or

dissatisfaction. This will influence his subsequent behaviour. If he is satisfied, he will show more

interest to buy the product the product or get information that might confirm its high value. Hence, to

satisfy a consumer, a market must try to convince him to choose a product, the attributes for which a

consumer gives importance must be analyzed.

The marketer’s job does not come to an end as soon as the product is being bought, but continues into

the post purchase period. Further, proper understanding of the various participant’s behaviour in the

buying process and the major influences on their buying behaviour, will help the marketers to design

effective marketing programs for their target markets.


3.1 Factors That Influence Buyer Behaviour

Throughout the buying process, various factors may influence the buyer. A person’s

culture, social class, reference groups and self-image all have a bearing on the purchase decision. As

to the situational factors like the presentation of the product, the events in the buyer’s life and the

person’s mood at the time of purchase also induce him to purchase a product of his choice.

1. CULTURAL FACTORS

Culture is the most fundamental of a person’s wants and behaviour. It refers to a set of

learned beliefs, attitudes, values, customs, habits, etc., and determines human wants and behaviour.

Separate marketing strategy can be developed for each culture and market can be segmented for

patterns of behaviour varying between different cultures.

2. SOCIAL FACTORS

The different classes namely, upper class, middle class and lower class also determine the

behaviour of a person to purchase his products. Low class customers buy usually on impulse and do

not even care to read advertisement much. Middle class consumer purchase carefully and read

advertisements much to know and compare the prices of different procedures engaged in the same

line of activity. Upper class consumers want high class goods maintain their status in the society.

3. PERSONAL FACTORS

A buyer’s behavior is also influenced by personal factors such as age, occupation,

income, life style, etc.


a) Age

People buy different products at their different life stage, their taste, preferences, etc., also change

with change in life stage. For instance, taste in dress materials, recreation etc., are age related.

b) Occupation

For certain occupation, the purchase of certain type of products is necessary. For example, a sales

representative will buy fancy dress, shoes, suitcase, etc., to win the attention of the people. Similarly,

a chief executive of a company will buy costly suits, undergo air travel, etc.

c) Income

Income being the main source of purchasing power, the buying pattern of people differs with

different level of income.

d) Life Style

The term life style refers to the person’s pattern of living in the world. People belong to same social

class, occupation, may lead quite different life styles. Life style attempts to profile a person’s way of

being and acting in the world.

4. PSYCHOLOGICAL FACTORS

A person’s buyer behavior is also influenced by the following psychological factors.

a) Motivation

A motive as an inner urge that moves a person to some action. People buy goods as a result of certain

mental as well as economical forces that create desires of buying such goods.


b) Perception

“Perception is the process by which an individual selects, organizes and interprets information inputs

to create a meaningful picture of the world”. Persons at the same motivated stage may act in a quite

different manner if they perceive the situation differently.

c) Learning

Learning may be defined as all changes in an individual’s behaviour arising from past experience.

Learning is the main aspect in the study of human behaviour. Buying decisions are affected critically

by the learning experience of buyers.

d) Attitudes

An attitude is a state of mind feeling. If may be described as a person’s emotional feeling, action,

tendencies towards some idea or object. If a person has an attitude towards a product, it is difficult to

change his attitude because a person’s attitude settles into a consistent pattern. It induces him to

behave in some way. People have attitudes towards each and everything and to study the buyer

behaviour it has to be taken into notice.


3.2 Key Findings till now:

1. At a macro level, manufacturers felt that the impact of modern retail will be positive. According to

them, the advent of organized retail in India was both welcome and inevitable for the Indian

economy. In their opinion, the benefits that organized retail would bring by far outweigh the negative

effects of inadequate retail services in a country like India.

Some of the reasons cited for this positive impact were:

• Benefits for consumers: Organized retail will offer consumers several benefits, such as wider

product choice more in line with consumer needs, lower prices, better shopping experience because of

improved store ambience and increased browse ability, enhanced service, and quality levels.

• Greater job creation: Organized retail will create employment at several levels. The most

significant increase will be in front-end jobs for retail staff, where the contribution of organized retail

will be not only in the greater number of the people employed but also in making jobs that were

otherwise considered “menial”, more dignified, thereby, giving even those without higher educational

qualifications a decent livelihood.

• Efficient supply chain: The robust sourcing and distribution network likely to be set in place by

modern trade would result in a more efficient supply chain management -- reduced lead times, fewer

stock outs, reduced wastage, and consistent product quality.

• Survival of traditional retail: Manufacturers believe that both small and large retailers would

continue to co-exist in India. Small retailers account for the bulk of retail sales today and will remain

a significant force in the future since growing consumption will itself warrant the growth of both


organized and traditional retail. Traditional retailers will also innovate, upgrade their stores and

enhance value-added services to retain and strengthen relationships with their customers.

2. The likely direct impact on the business of manufacturers, however, will not be entirely positive.

The response of manufacturers interviewed to the likely impact of growth of organized retail on their

own businesses was, on the whole, more guarded and less positive. The benefits that organized retail

would bring in terms of creating higher demand for their brands and greater efficiency in the

distribution system would need to be weighed against the pressures on prices, margins, and the threat

of competition from private label brands.

3. Manufacturers anticipate several benefits.

• Organized retail will fuel growth and build efficiencies. Manufacturers felt that the advent of

modern retail will stimulate their growth as well. Initially, this will be because of increased demand

created by organized retailers in order to fill retail shelf space, and, subsequently, because of

increased consumption created by the consumers’ exposures to categories and brands at modern retail

formats. They also felt that the need to service large buyers demanding lower prices and greater

efficiencies will force large manufacturers to invest in people, processes, and technology to

streamline their own production and distribution operations.

• Organized retail will aid development of new FMCG categories.

Manufacturers anticipate that organized retail will help in the development of new product categories

– particularly higher priced categories, categories that have a high degree of consumer involvement

and those which benefit from consumer touch and feel – like personal care products and eatables.


Further, since modern retail facilitates faster customer feedback, they will be able to effect

improvements in products and brands and “go to market” faster.

• Organized retail’s sourcing and distribution network will benefit manufacturers.

Manufacturers felt that, currently, most of organized retail is operating through the traditional supply

chain with its multiplicity of intermediaries. As organized retail grows and large retailers have their

distribution centers (DC) and IT infrastructure in place, manufacturers will be able to supply directly

to these retailers. This would help reduce transaction costs on logistics, packaging, credit,

commissions, etc. Elimination of intermediaries would also bring in more transparency in the flow of

operations.


CHAPTER IV


4. RESEARCH METHODOLOGY

Research Methodology is the way to systematically solve the research problem. Research methodology just

does not deal with research methods but also considers the logic behind the methods. It may be understood as

the science of studding how research is done scientifically and systematically.

Methodology

The primary methods of data collection that is questionnaire technique was used to collect

the data required. Respondents include both male and female. Convenience sampling method has

been adopted under the non-probability sampling technique

The questionnaire consists of four parts namely, personal information, purchasing pattern, details

about products and customers services provided at the store. The questionnaire was designed in such

a way that the respondents were able to express their opinions and ideas freely and frankly.

Sample Area of the Study

The area covered under the study is in Bhilai city.

Period of the Study

The study was conducted during the period March 2010 to April 2010.

Population-

To achieve the objective of the study, the city of Bhilai is selected.

So population of research consists of individual customer of Bhilai city.


Sample Size-

The sample is a representative unit of population. It is neither feasible nor desirable cover

the entire population, so we have taken sample size 180 for this project.

Sampling Method-

The sampling method adopted in the research is convenient sampling. In This sampling

the researcher selects the respondents who are basically coming to the store.

Sources of Data collection-

Both primary and secondary data are required. Primary data is the first hand information

collected directly from the respondents. The tool used here is questionnaire. Primary data is collected

through survey among existing customer.

Secondary Data-

Secondary data is collected through internet and books.


RESEARCH DESIGN


4.1 The Project Brief

The objectives of the study are:

1. To study the factor influencing the customers to purchase house hold articles from departmental

store.

2. To study the needs of the customers at the place of purchase.

3. To study the consumer’s opinion and ideas about the price, quality and services rendered by the

departmental stores.

4. To study the sales services provided by the departmental stores.

5. To suggest, improve in sales and functions in the departmental stores based on results.

Target respondents:-

Age: 20 and above


4.2 RESEARCH PLAN


BEGINNING INVESTIGATIONBEGINNING INVESTIGATION

This phase involved beginning investigation of the various factors which could possibly affect the

consumer’s perception about the various brands and in turn influence the purchasing decisions of the

customer from departmental stores.. We primarily used three methods to identify the various factors. The

Secondary data gathered was analyzed to understand the current scenario of the Retail stores. The analysis of

the secondary data also helped us find different attributes which affect the Retail segment.

4.2.1 Collection of Quantitative data:4.2.1 Collection of Quantitative data:

Measurement and Scaling Procedures:Measurement and Scaling Procedures: Non-Comparative Rating scale is used in which respondents

evaluate only one object at a time, and for this reason no comparative scales are often referred to as monadic

scales. No comparative techniques consist of continuous and itemized rating scales.

We have used continuous rating scale in order to rate the choices for purchase considerations and the sources

of purchase decisions.

Questionnaire Design:Questionnaire Design: This phase involved the design of the questionnaire on the basis of the focus group

discussion which identifies possible factors as influencing the customer behavior. Research problems were

listed and then the information needed was identified. The questions were then prepared in order to fulfill the

information requirements as identified earlier.

Survey:Survey: Different Survey methods were used for collection of data. The principle method used was Personal

Interviewing of the respondents. Focus group discussion was conducted by us in Raipur.


4.2.1 Sampling Process:4.2.1 Sampling Process:

Target Population:Target Population: The target population is the collection of elements or objects that process the

information sought by the researcher and about which inferences are to be made. Our target population

involves the customers of Supermarket & Departmental stores in Bhilai & Raipur.

Sample Size-:Sample Size-:

The aim was to collect 180 samples for the analysis. The samples should be such that they are customers of

Departmental stores. We also tried to get a sufficient ratio of men and women in the samples. The main

demographics targeted were the younger age group as they are more conscious and aware of shopping trends.

Also I tried to focus more on the mothers and young professionals as they would be more interested in trying

out modern stores and was more conscious.

Customers who have been purchasing from the modern stores were better able to answer the questions

regarding the influencing factors and the reasons for their attraction and purchase.

Sampling Technique:Sampling Technique: A mixture of quota and stratified method was used for sampling, with care being

taken to get responses from customers of different age groups and of different professions.


CHAPTER V


5. DATA ANALYSIS & INTERPRETATION

INTRODUCTION

All the information collected from the sample respondents is analyzed and the results

presented at the end of this chapter. The data analysis are related to the customer need in a

departmental store, various factors influencing their purchase and their opinion regarding the products

price, quality and etc, and the after sales services rendered by the departmental store.

Methodology :Methodology :

Questionnaire Checking/Editing:Questionnaire Checking/Editing: The questionnaire is checked for completion and interviewing quality.

Editing is the review of the questionnaire with the objective of increasing accuracy and precision.

Collation of Data: Collation of Data: The data is collated in the excel sheet and prepared for statistical analysis. An SPSS view

of the data was also taken for further analysis.

Primary research analysis

The group members have conducted the surveys in the form of questionnaires and Interviews from

respondents format of which has been given in the Primary Research Methodology. Target Group consists of

house‐wives, working professionals and college students above 18 year old.


5.1 DEMOGRAPHIC INFORMATION

TABLE SHOWING THE OCCUPATIONAL STATUS OF THE RESPONDENTS

Interpretation: - Above table showing the occupational status of the respondents. It reveals that,

more than 46% of the respondents are Students, followed by 33% of the respondents are Employed

and least no. of respondents are Business and House Hold.


CHART SHOWING THE AGE GROUP OF THE RESPONDENTS

Interpretation: - The above represents the age group of the respondents. More than 70%

of the respondents belong to the age group of Below 30 years. 13% of the respondents belong

to the age group of 30 - 40 years and a least of 7% belong to the age group of 40-50years and

7% above 50 years.


GRAPH SHOWING THE MARITAL STATUS OF THE RESPONDENTS

Interpretation: - The table shows the marital status of the respondents. It reveals that, about 73%

of the total respondents are Single and 27% are married.


EDUCATION QUALIFICATION

Interpretation:- The above represents that 33% of the respondent are Undergraduate, 40% of the respondent

are Graduate, 27% of the respondent are Postgraduate & 10% of the respondent are

Professionally Qualified.


5.2 ANALYSIS & INTERPRETATION

Q1. From which type of store you prefer purchasing the product?

Options No. Of Respondent Percentage (%)

(I) Organized 21 70%

(II) Both Org. &

Unorganized

9 30%

Total 30 100%

Interpretation:- The above data shows that 70% of the respondent prefers Organised Stores for purchasing & 30% of

the respondent purchase from both the Organised & Unorganised Stores.


Q2. How many times do you go for purchasing?


(I)Once in a month 11 36.7%

(II)Once to thrice a month 3 10%

(III)Many times a month 9 30%

(IV)Rarely 7 23.3%

Total 30 100%

Interpretation:- The above data shows that 37% of the respondent go once in a month, 10% of the respondent

go once to thrice a month, 30% of the respondent goes many times a month & 23% of the

respondent goes rarely for purchasing.


Q3. Which type of product you purchase from Departmental Store?

Options No. Of Response Percentage (%)

(I) Fruits & vegetables 10 13.51%(II)Provisions & groceries 19 25.7%(III)Cosmetic product 20 27.0%(IV)Health care product 11 14.9%(V)Stationery products 14 18.91%

Total 74 100%

Interpretation:- The above data shows that 13.5% of the respondent buys fruits & vegetables, 25.5% of the

respondent buys provision & groceries, 27% of the respondent buys cosmetic product, 15% of

the respondent buys health care product, 19% of the respondent buys stationery items from

departmental stores.


Q4. What is the reason for purchasing through Departmental Store?


(I) Convenient 18 34%(II) Time Saving 15 28.3%(III) Less Cost 12 22.64%(IV) Prestige 8 15.1%

Total 53 100%

Interpretation:- The above data shows that 34% of the respondent purchase from departmental stores because

it is convenient, 28% for time saving, 22.5% because of less cost & 15% because of their

prestige consideration.


Q5. What factors attract you towards modern retail stores?


(I) Variety of products 16 47.1%

(II) Offers & schemes 6 17.65%

(III) Environment 5 14.7%

(IV) Facilities 7 20.6%

Total 34 100%

Interpretation:- The above data shows that variety of product is the main factor which attracts the customers

while offers & schemes not much influence the customer.


Q6. How do you come to know about offer & schemes?


(I)Advertisement(T.V.,

Radio)

12 36.4%

(II) Newspaper/Magaz. 13 39.4%

(III) Through Persons 5 15.2%

(IV)Others 3 9.1%

Total 33 100%

Interpretation:-

The above data shows that main sources of information to the customers are Newspaper, T.V.

& FM Radio.


Q7. Do they provide free door delivery service?


(I) Always 11 36.7%

(II) Often 8 26.7%

(III) Sometimes 2 6.7%

(IV) No 9 30%

Total 30 100%

Interpretation:- The above data shows that 36.5% of the times departmental stores provides free door delivery

service, 26.5% of the times departmental stores often provides free door delivery service,


6.5% of the times departmental stores provides free door delivery service & 30% of the times

departmental stores don’t provides free door delivery service.

Q8. Do they provide parking facility free of cost?


(I) Yes 23 76.7%(II) No 7 23.3%

Total 30 100%

Interpretation:-

The above data shows that 77% of the customer uses the parking facility free of cost & 23%

of the customer has to pay for using the parking facility.


Q9. Do they provide discount & benefits?


(I) Always 5 16.7%(II) Occasionally 10 33.3%(III) Sometimes 14 46.7%(IV) No 1 3.3%

Total 30 100%

Interpretation:-


The above data shows that 16.5% of the customer believe that departmental stores always

provides offer & schemes, 33% of the believe occasionally, 46.5% believe sometimes& 3.3%

believe that the departmental stores never provides offer & schemes.

Q10. Do you buy branded products?


(I)Always 7 23.3%(II)Sometimes 18 60.0%(III)Rarely 5 16.7%

Total 30 100%

Interpretation:-


The above data shows that 23.3% of the customers always buy branded products, 60% of the

customers sometimes buy branded products & 16.7% of the customers rarely buy branded

products.

Q11. Which mode of purchase you mostly follow?


(I)Cash 30 100%(II)Credit 0 0%

Total 30 100%

Interpretation:-


The above data shows that since all the departmental stores don’t provide credit facility, they deal

only in cash payment.

Q12. What is your at a time budget for purchasing?


(I)Rs 500-1000 5 16.7%(II)Rs1000-2000 14 46.7%(III)Rs 2000-3000 7 23.3%(IV)Above Rs 3000 4 13.3%

Total 30 100%

Interpretation:-


The above data shows that 16.7% of the customers have their at a time budget of 500-1000,

46.7% of the customers have their at a time budget of 1000-2000, 23.3% of the customers

have their at a time budget of 2000-3000 & 13.3% of the customers have their at a time

budget above Rs 3000.

CHAPTER VI


6.1 FINDINGS

1. Mostly the youth & students prefer the departmental stores.

2. People generally go in departmental stores to buy variety of products.

3. Attractive offers & schemes is not the important factor for purchasing from the departmental stores.

4. Some departmental stores are not situated at convenient locations.

5. Majority of the customers goes only once in a month for purchasing.

6. Newspaper, Television & FM Radio is the major sources of information to the customer.

7. At a time budget of customers fluctuates in the range of Rs 1000-2000.

8. 86% of the customers are satisfied with services & facilities of departmental stores.

9. When a customer go for purchasing with others (friends, relatives & colleagues) his budget increases.

10. Customers above age of 40yrs don’t discriminate between General Stores & Departmental

Stores.

11. All Departmental Stores accept Debit & Credit cards, but they do not have the facility of

Online Shopping.


6.2 RECOMMENDATIONS

1. Departmental stores should also offer the facility of trolley for carrying, since bucket is not sufficient

enough.

2. Departmental stores should have the air conditioned stores.

3. Departmental stores should have the different doors for entry & exit.

4. Departmental stores should not allow the customer to carry their own bags while entering in the store,

their should be a proper arrangement for keeping it in a self with token system.

5. They should also start keeping gifts, art & crockery products.

6. They can also attract more customers by keeping some additional products like school bags, raincoat,

belts, goggles, caps, stationary items, greetings & bakery products.

7. They should regularly check their security cameras.

8. If possible they should install the Metal Detector system for the purpose of security & safety.

9. They should always keep fire extinguisher & install fire alarm in their store.

10. Emergency number should be written in the notice board or near counter.

11. They should display screen which keep on informing to the customers.


6.3 LIMITATIONS / CONSTRAINTS

Since this Project was intended to initiate us to the methodologies and techniques of Business Research

Methods, therefore there are a number of constraints in terms of Manpower and Resources to conduct a

large-scale survey. The scope of the project was limited to learning.

There have been a number of limitations because of which the survey may not be indicative of the views of

the target population. A few of these have been mentioned below:

The Sample size used for the research is less.

The Sample consisted of large no. of students.

The Target Area was limited to some colonies, offices and colleges.

Consultation with Experts would have largely improved quality of the Research.

The Questionnaire was not extensive and more issues could have been addressed.

The responses obtained might be inaccurate or biased, inadvertently or deliberately.

The sample of the respondents chosen for the study might not be the exact representative.

Analysis of the proposed aspects might differ depending on the tools and techniques used.


6.4 CONCLUSION

After analyzing the Departmental Stores, I concluded that the organized retail has opportunities to grow in

India in spite of the kirana stores because these kirana shops will also get benefit of the growing economy.

The argument that the kirana shops will be affected by these malls is only myth. The organized retail is

attracting more and more Indian as well as foreign players of the retail industry. As my study shows that a

major portion of the organized retail will be developed in small cities and towns, this opportunity has not

been encashed by kirana stores and they are unable to meet the requirements of the customers. Therefore

both the Departmental stores and kirana stores can play simultaneously in India so no need get afraid due to

the Departmental stores.

Nevertheless, there is a timely need for a fresh regulatory framework and competition policy so that both

traditional retail and modern retail can continue to grow in harmony eventually closing the gap between the

organized and unorganized sector. The robust sourcing and distribution network of large retailers would

certainly help make the supply chain more efficient.

Owners of the Departmental stores are gearing up to counter these pressures by strengthening their own

brands, enhancing their retail presence and collaborating with traditional retailers. They believe, however,

that both modern and traditional retailers will co-exist in India for some time to come, as both of them have

their own competitive advantages. The kirana has a low- cost structure, convenient location, and customer

intimacy. Modern retail offers product width and depth and a better shopping experience.

.


7. BIBLIOGRAPHY

C.R Kothari, Research Methodology, Wishwa Prakashan 2002.

Philip Kotler, Marketing Management, Prentice Hall of India Pvt. Ltd., New Delhi.

Saxena, Rajan, Marketing Management, Tata McGraw Hill Publishing Company, New Delhi.

Annual Report 2006-07. Ministry of Agriculture, Department of Agriculture & Cooperation, Government of India.

Bose, P.R. 2005. Amul mulls setting up 10,000 parlours: May sell fresh, froze vegetables.

Business Line Internet Edition. http://www.thehindubusinessline.com/2005/06/22/stories/2005062201480900.

htm 21 (accessed February 4, 2008).

Business Line. 2007. ITC to take retail biz to doorsteps of customers. February 7.

Commerce and Industry Ministry. 2007. India Retail Report 2007. Delhi: Commerce and Industry Ministry, January.

CRISIL Research, 2007. Organized food retailing can increase rural income, cut inflation – Resultant increase in rural spending can boost GDP, Insight in Industry, June.

Financial Express. 2007. Mayawati: Retail to open to RIL. December 25.

Goldman, A. 1974. “Outreach of Consumers and the Modernization of Urban FooRetailing in Developing Countries,” Journal of Marketing, 38 (4), October: 8-16.

Gulati, A. 2007. Organized retail must be competitive and inclusive. Economic Times. September28.

Gulati, A. and K. Kanguly. 2007. “Competition among retail giants good,” Economic Times of India, 3 August

http://economicstimes.indiatimes.com


http://economicstimes.indiatimes.com/

QUESTIONNAIRE

Dear Sir/Madam,

I am conducting a survey entitled “A Study on Customer’s Attitude towards Departmental Stores in Bhilai city” I need your help in conducting this study. Kindly provide me your valuable opinion to fill this schedule. The information provided by you will be exclusively used for academic purpose.

Part I Demographic Information

a) Name :_______________________________________________b) Address :_______________________________________________c) Phone/Mobile No :_______________________________________________d) Occupation : Student Employed House Wife Businesse) Age : Below 30 years 30-40 y 40-50 y Above 50 y f) Marital statues : Single Married g) Education Qualification : Undergraduate Graduate

Postgraduate Professionally Qualified

Part II

1. Are you aware of Departmental Stores?(I) Yes (II) No

2. From which type of store you prefer purchasing the product?

a) Organized (Departmental Store)b) Unorganized (General stores)

IF Organized – CONTINUE, ELSE TERMINATE

3. How many times do you go for purchasing?(I) Once in a month (III) Many times a month(II) Once to thrice a month (IV) Rarely

4. Which type of product you purchase from Departmental Store?(I) Fruits & vegetables (IV) Health care product (II) Provisions & groceries (V) Stationery products(III) Cosmetic product (VI) all the above


5. What is the reason for purchasing through Departmental Store?(I) Convenient (IV) Time saving (VI) All(II) Less cost (V) Prestige

6. What factors attracts you towards modern retail stores?

(a) Variety of products (b) Offers & Schemes

(c) Environment (d) Facilities

7. How do you come to know about offer & schemes?(I) Advertisement(TV/Radio) (III) Through Persons in contact(II) Newspaper/Magazines (IV) Others

8. Do they provide free door delivery service?(I) Always (III) Some times (II) Often (IV) No

9. Do they provide parking facility free of cost?

(I) Yes (II) No

10. Do they provide discount & benefits?(I) Always (III) Some times (II) Occasionally (IV) No

11. Do you buy branded products?(I) Always (III) Rarely(II) Sometimes

12. Which mode of purchase you mostly follow?(I) Cash (II) Credit

13. What is your at a time budget for purchasing?

(I) Rs 500-1000 (III) Rs 2000-3000(II) Rs 1000-2000 (IV) Above Rs 3000


LiKert Scale

S.No Questions Strongly Agree

Agree Neither Agree Nor Disagree

Disagree Strongly Disagree

Don’t Know/No comments

1 Store are conveniently located 12 10 1 6 1

2 Store working hour are suitable for you

4 22 3 1 0

3 There are variety of product available for selection

8 5 6 1 0

4 Product display are attractive 5 17 6 2 0

5 Departmental store provides satisfaction

0 26 4 0 0

6 Purchasing from departmental stores helps in saving money

2 13 10 5 0

7 Purchasing with family membersor other affects the budget

3 11 6 4 0

Signature

Thank you for your feedback. We sincerely appreciate your honest opinion and will take your input into consideration.

SSIPMT/MBA/SATYAJIT SARKAR Page 66

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Documents

Dept -Proj. Report