Escolar Documentos
Profissional Documentos
Cultura Documentos
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CHAPTER – 1
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The sea of change can pull customers in many directions. It is our
responsibility to light the way and take care of them… before the
competition does.
RETAILING Means “Re-tailing” to the customers so that they comeback.
Retailing consists of all activities involved in selling goods and services to
consumers for their personal, family, or household use. It covers sales of
goods ranging from automobiles to apparel and food products, and services
ranging from hair cutting to air travel and computer education. Sales of
goods to intermediaries who resell to retailers or sales to manufacturers are
not considered a retail activity.
The Indian retail story couldn't have been more different. India has approx
12 million retail stores, more than rest of the world put together. But the per
capita square feet area under retail is just 2 sq.ft or 0.2 sq. meters with
fragmented kirana stores being the predominant players.
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large retail infrastructure in terms of Malls and Superstores that are being
created. The challenge for leading retailers shall therefore shift from
diverting demand to creating demand.
With all the modern stores offering convenience in terms of an assortment of
products, ambience, service and innovative products, the paradigm shall
shift from competing with the kirana stores to an in-house demand creation.
Relevant experiences from consumer goods companies, which have
successfully crafted an explosion in demand in their sectors, through
innovation, consumer driven strategies, will be head runner. Times are
changing. With the GDP at an all time high and income levels shooting
through the roof, the average Indian consumer has never had it so good. The
propensity to consume has reached peaks that had never been scaled before.
Credit cards are flashed with disdain and shopping baskets are getting bigger
all the time. Here are some factors that indicate the potential of retail in
India:
• At 271 million, one of the largest consuming base in the world,
forming 27% of the total population.
• A high spending community below 45 years comprises 81 percent of
the population.
• A young population with 54% population below 25 years
• Increased literacy from 44% in 1965 to 70% in 2003
• Increase in working women from 1.3 million in 1961 to 4.8 million in
1998.
The first decade of modern retail in India has been characterized by a shift
from traditional kirana shops to new formats including department stores,
hypermarkets, supermarkets and specialty stores across a range of
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categories. Modern retail formats have mushroomed in metros and
minimetros.
In the last few years, modern retail has also established its presence in the
second-rung cities, exposing residents to shopping options like never before.
However, even as modern retailers garner share from traditional channels,
there is a larger role they would be required to play in boosting consumption
levels.Figures suggest that the total turnover of the sector is around Rs 10
lakh crores, of which 4 percent is contributed by the organised sector.
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with revenue expected in 2007 to amount US$ 320 billion and is increasing
at a rate of 5% yearly. A further increase of 7-8% is expected in the industry
of retail in India by growth in consumerism in urban areas, rising incomes,
and a steep rise in rural consumption. It has further been predicted that the
retailing industry in India will amount to US$ 21.5 billion by 2010 from the
current size of US$ 7.5 billion.
Shopping in India have witnessed a revolution with the change in the
consumer buying behavior and the whole format of shopping also altering.
Industry of retail in India which have become modern can be seen from the
fact that there are multi- stored malls, huge shopping centers, and sprawling
complexes which offer food, shopping, and entertainment all under the same
roof. India retail industry is expanding itself most aggressively, as a result a
great demand for real estate is being created.
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competition for convenience stores are coming from organized retail stores
dealing in food items, like:
• Apna Bazaar
• Canteen stores
• Food World
• Subhiksha
• Food Bazaar
Convenience Stores are open for long hours and is one of the formats of the
Indian retail stores that cater to basic needs of the consumer. A good
example of such would be Convenio. These stores are found in both
residential as well as commercial markets. The food products of traditional
family run convenience stores are comprised of branded as
well as non-branded items. The benefits of family run convenience stores is
that they give importance to:
• Personal touch
• Facilities of credit
• Quick home delivery
• Non-food based stock comprises of multiple and varieties of local
brands.
The future of such stores as they face competition from organized sector,
would depend on the following particulars:
• Place and capacity
• Diligent area coverage
• Disciplined work schedule
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• Managing turnover
• Revenue from assets
• Customer service and satisfaction
The traditional family run convenience stores serves the purpose of the
housewives who definitely wants to avoid traveling long distances to
purchase daily needs. The convenience factor in terms of items, among
people in general can be highlighted as below:
• Groceries
• Fruits
• Drug Store
• Necessary stationery
As such traditional family run convenience stores are here to stay and cannot
be oversized by the organized retail sector besides, it represents the variety
of India.
Indian organized retail market is growing at a fast pace due to the boom in
the India retail industry. In 2005, the retail industry in India amounted to Rs
10,000 billion accounting for about 10% to the country's GDP. The
organized retail market in India out of this total market accounted for Rs 350
billion which is about 3.5% of the total revenues.
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Retail market in the Indian organized sector is expected to cross Rs 1000
billion by 2010. Traditionally the retail industry in India was largely
unorganized, comprising of drug stores, medium, and small grocery stores.
Most of the organized retailing in India have started recently and is
concentrating mainly in metropolitan cities. The growth in the Indian
organized retail market is mainly due to the change in the consumers
behavior. This change has come in the consumer due to increased income,
changing lifestyles, and patterns of demography which are favorable. Now
the consumer wants to shop at a place where he can get food, entertainment,
and shopping all under one roof. This has given Indian organized retail
market a major boost.
Retail market in the organized sector in India is growing can be seen from
the fact that 1500 supermarkets, 325 departmental stores, and 300 new malls
are being built. Many Indian companies are entering the Indian retail market
which is giving Indian organized retail market a boost. One such company is
the Reliance Industries Limited. It plans to invest US$ 6 billion in the Indian
retail market by opening 1000 hypermarkets and 1500 supermarkets.
Pantaloons is another Indian company which plans to increase its retail
space to 30 million square feet with an investment of US$ 1 billion. Bharti
Telecoms an Indian company is in talks with Tesco a global giant for a £
750 million joint venture. A number of global retail giants such as Walmart,
Carrefour, and Metro AG are also planning to set up shop in India. Indian
organized retail market will definitely grow as a result of all this investments
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(A)Modern Format retailers
1) Supermarkets (Foodworld)
2) Hypermarkets (Big Bazaar)
3) Department Stores (Shoppers Stop)
4) Specialty Chains (Ikea)
5) Company Owned Company Operated (BP)
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(C)Large Indian retailers
1. Hypermarket
1) Big Bazaar
2) Giants
4) Star
II Department store
1) Lifestyle
2) Pantaloons
3) Piramyds
III Entertainment
1) Fame Adlabs
2) Fun Republic
4) PVR
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Chapter – 2
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2. Classification of Indian retail sector:
a) FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector
Traditional types of retailers, who operate small single-outlet businesses
mainly using family labour, dominate this sector In comparison, super
markets account for a small proportion of food sales in India, However the
growth rate of super market sales has being significant in recent years
because greater numbers of higher income Indians prefer to shop at super
markets due to higher standards of hygiene and attractive ambience.
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D) HOME FURNITURE & HOUSEHOLD GOODS
Small retailers again dominate this sector. Despite the large size of this
market, very few large and modern retailers have established specialized
stores for these products. However there is considerable potential for the
entry or expansion of specialized retail chains in the country.
E) DURABLE GOODS
The Indian durable goods sector has seen the entry of a large number of
foreign companies during the post liberalization period. A greater variety of
consumer electronic items and household appliances became available to the
Indian customer. Intense competition among companies to sell their brands
provided a strong impetus to the growth for retailers doing business in this
sector.
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their suburbs, the latest trend in this sector is the increasing focus on
providing leisure activities such as multiplexes, facilities for kids'
entertainment, eateries etc. within the mall premises. Customer less the time
consumes and more entertainment with his family in malls because they
within shopping mall number of retail shop and variety of products and
selected the product they want. Good environment in mall. Less crowed and
These are enclosed, air-conditioned, multi-level malls of at least 100,00 sq
ft. Critical to these malls is the concept of the anchor, the key outlet or store
around which other outlets cluster. The most popular Indian anchors include
Shoppers' Stop, Globus, Pantaloon, Lifestyle and hypermarkets like Big
Bazaar and Giant. Cinemas also often anchor malls. Driven by the lucrative
tax breaks, the old single screen theatres are being divided into three-five
smaller screens, as was done in the US, years ago. Example for wave and
PVR.
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Chapter – 3
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3. Consumer behavior and retailing decisions:
Consumer behavior refers to the mental and emotional process and the
observable behavior of consumers during searching, purchasing and post
consumption of a product or service. Consumer behavior involves study of
how people buy, what they buy, when they buy and why they buy. It blends
the elements from psychology, sociology, sociopsychology, anthropology
and economics. It also tries to assess the influence on the consumer from
groups such as family, friends, reference groups and society in general.
Buyer behavior has two aspects: the final purchase activity visible to any
observer and the detailed or short decision process that may involve the
interplay of a number of complex variables not visible to anyone.
A. Social Factors
Social factors refer to forces that other people exert and which affect
consumers’ purchase behavior. These social factors can include culture and
subculture, roles and family, social class and reference groups.
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B. Psychological Factors
These are internal to an individual and generate forces within that influence
her/his purchase behavior. The major forces include motives, perception,
learning, attitude and personality.
C. Personal Factors
These include those aspects that are unique to a person and influence
purchase behavior. These factors include demographic factors, lifestyle, and
situational factors.
Information Search
Problem Recognition
Purchase Action
Alternative Evaluation
consumer Attribute affecting choice of format between organized and unorganized Retail
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3.1 Retail outlet selection and brand selection:
There are three fundamental patterns, which a consumer can follow and they
could be:
(I) Brand first, retail outlet second
(ii) Retail outlet first, brand second
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(iii) Brand and retail outlet simultaneously.
A consumer wanting to buy a car may collect information on brands and
purchase it from a retail outlet based on his perception of price offered or
after sales service provided by the outlet (typically, search for information
on brands is followed by retail outlet selection in durables). In certain
product categories, especially where `category killers' exist, consumers may
think of the retail outlet initially and then the brands (television, refrigerator
and audio products retailed through outlets like Vivek and Co. in the South,
could be an example).
One more dimension may be to compare brands in the evoked set at retail
outlets which also exist in an evoked set of their own. This is highly
possible, especially in the Indian context where dealers develop a social
relationship with consumers, especially in semi-urban and rural areas.
Primary research could be used to discover the specific sequence involved in
a situation of this kind. A `brand first' dimension may need feature-based
advertising and a `retail outlet first' dimension may require a set of point-of-
purchase (POP) materials and special training to sales personnel to recognize
the needs of consumers.
Brand first and outlet second: The brand was probably thought of by the
consumers because-
(i) the consumers may not have developed a relationship with any retailer
which is strong enough to get into the `evoked retail set' or
(ii) the brand has got into the evoked set because of advertising or positive
word of mouth. Local advertising with the mention of brand names which
have already got into the evoked set would enable consumers to be `pulled'
to the outlet. Primary research may be required to identify the brands in the
evoked set.
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Chapter – 4
Organized vs Unorganized Retail
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In the developed economies, organized retail is in the range of 75-80 per
cent of total retail, whereas in developing economies, the unorganized sector
dominates the retail business. The share of organized retail varies widely
from just one per cent in Pakistan and 4 per cent in India to 36 per cent in
Brazil and 55 per cent in Malaysia (Table 2.2). Modern retail formats, such
as hypermarkets, superstores, supermarkets, discount and convenience stores
are widely present in the developed world, whereas such forms of retail
outlets have only just begun to spread to developing countries in recent
years. In developing countries, the retailing business continues to be
dominated by family-run neighbourhood shops and open markets. As a
consequence, wholesalers and distributors who carry products from
industrial suppliers and agricultural producers to the independent family-
owned shops and open markets remain a critical part of the supply chain in
these countries.
Table 2.2: Share of Organized Retail in Selected Countries, 2006
CountryTotal Retail Sales (US$ bn) Share of Organized Retail (%)
USA 2,983 85
Japan 1,182 66
China 785 20
United Kingdom 475 80
France 436 80
Germany 421 80
India 322 4
Source: Planet Retail and Technopak Advisers Pvt. Ltd
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Chapter - 5
Selection of Topic
5. Selection of Topic
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This research project “Study on changing consumer preferences towards
Organised retailing from un-organised retailing (Delhi /Noida)” is an
attempt to find out the change in consumer’s purchasing behavior, which is
shifting towards organized retailing like malls, shopping complexes etc from
traditional kirana stores.
Why Delhi and Noida: The malls and shopping complexes are building here
at a high rate and a large number of population shifted towards this format of
retailing so for my project Delhi and Noida are the appropriate places to go
for the research analysis.
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Chapter – 6
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Organized retail has started to spread its roots in the Indian market since past
one decade and is gradually making mark among all sections of the society.
This project report tries to explore the way organized retail has dramatically
changed not only the Indian traditional retailing structure by also the
consumption behavior. The consumption behavior was examined with the
help of a structured questionnaire. The results show that, for consumers, the
shopping mall or variant of organized retail format is the preferred type of
retail store, due to convenience and variety.
The Indian market has seen vast changes in political, economical and social
environment, which has a great impact on consumption. With the Indian as
well as international corporate entering into the Indian retail scenario the
market has been divided between the traditional and the organized sector.
The Indian retail scenario is presently facing the similar situations as the
mom and pop stores in the developing nations faced at the emergence big
box retailers. There are various issues that need to be addressed, like what
would be future patterns of consumption, which formats of retail would be
preferred by consumers and will the rise of organized retail affect the
traditional retailers.
This study will contributes to the understanding that consumers and retailers
in most cases have different perceptions in relation to store image and
shopping habits, justifying the need for consumer marketing research, which
is important in helping retailers, implement in a real marketing orientation.
The study will examines the choice of format the consumer has when he or
she decides to buy a particular product and also describes the development
of organized retail in the future, focusing on aspects with potential effect on
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purchasing behavior among the consumers. The focus is on consumer
expectations. The questions were formulated to capture the overall behavior
of the consumers and with the help of the survey questionnaire the analyses
was done. An attempt has been made to explore the way organized retail has
dramatically changed not only the Indian traditional retailing structure but
also the consumption behavior.
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Chapter – 7
Literature Review
7. Literature Review:
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Mathew Joseph and Manisha Gupta_September 2008: The Indian retail
sector is booming and modernizing rapidly in line with India’s economic
growth. In this review the author talked about the impact of organized
retailing on traditional retailing. With the increase in number of various
formats for shopping like malls, departmental stores, hypermarkets etc the
Indian consumer’s preferences are changing towards and that’s the reason
foreign investors like the king of retail Wal-Mart also came into the Indian
retail ground in collaboration with Bharti. There is a huge untapped market
is present in India right now which contains a number of opportunities for
retailers.
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motives for preferences, in decreasing order are low prices, the possibility of
buying everything in the same place and the general appearance of the store.
Several investigations emphasize the possible coexistence of different store
formats (Chandrasekhar, 2001) and others point out the relationship between
the type of store and the type of products. These studies show that, while
specialized and traditional stores are preferred for fresh products,
hypermarkets are preferred for shopping in general, and also for frozen food,
groceries and beverages. The purchase of perishables in hypermarkets is
reduced.
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world. By 2011, Asia remains the fastest growing convenience store market
in the world as the major Asian retail markets registered explosive growth in
opening up of new convenience store. Changing consumer preferences,
lifestyle and rising income level, which is heavily influenced by economic
growth, remains the major driving force for c-store industry in the Asian
region. as per "Global Convenience Store Market Analysis".
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Chapter-8
Sampling Design
8. Sampling Design:
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1. Sampling unit Respondents of (few malls)
2. Size of sample 100 respondents
3. Sample Method Random Sampling
4. Types of questionnaire Close ended
Data type collected for analysis is PRIMARY i.e. data has been observed
and recorded by the researchers for the first time to their knowledge. Data
collected through journals, newspapers & internet is SECONDARY type.
As this study is of descriptive type, the primary data has been collected
through Questionnaire.
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Chapter-9
Analysis of Data
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9. Analysis of Data:
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E) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]
1) Which type of place do you visit frequently for your shopping needs?
a) Supermarket [ 80 Respondents]
b) Wholesaler [ 8 Respondents]
c) Local Stores [ 12 Respondents]
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shopping mall for their shopping needs. It means maximum no of
customer are preferred Shopping Malls for purchasing.
• i.e. 60 out of 100 are preferred multi branded store for shopping. It
means maximum no of customers are time conscious and desire for
many brand under one roof.
3) Which one from malls/ Local Stores (kirana store) is more convenient for
all your shopping needs?
a) Malls [ 72 Respondents]
b) Local stores [ 28 Respondents]
• i.e. 72 out of 100 are preferred shopping in malls for all their shopping
needs. It means maximum no of customers are feels good in shopping
for their needs in malls because they can get everything from there
under one roof.
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b) Serviceability
c) Discounts
d) Mode of payment
e) All [ 100 Respondents]
• i.e. 100 out of 100 are preferred shopping in malls because of the
various factors which make the whole shopping experience good.
• i.e. People preferred shopping from kirana stores just when they need
something urgent and grocery items only. It shows the limited
shopping experience one customer have with these stores.
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5th OPTION 12 13 11 36 28
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stock. It means maximum no of customers did not compromise quality
with discount and offers.
9) How frequently you visit the Store (wherever you go for the shopping)?
a) <1 month [ 60 Respondents]
b) 1-3 month [ 28 Respondents]
c) 1-6 month [ 4 Respondents]
d) 1 year [ 8 Respondents]
• On the basis of above respondents the figures shows that there are
almost same numbers of respondents agrees for all the facilities
provided by malls. It means every respondent is inclined towards the
facilities provided by malls.
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Chapter-10
Findings
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10. Findings
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Chapter-11
Limitation
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11. Limitation
Every report has its pros and cons so mine also have some limitations.
They can be pointed as:
• Sample size restricted to 100 only which was very less according total
population.
• Survey is a time consuming process but the time to collect the data for
research was very less.
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Chapter-12
Conclusion
12. Conclusion
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The past 4-5 years have seen increasing activity in retailing. And, various
business houses have already planned for few investments in the coming 2-3
years. And though the retailers will have to face increasingly demanding
customers, and intensely competitive rivals, more investments will keep
flow in. And the share of organized sector will grow rapidly. retailing in
India is surely poised for a takeoff and will provide many opportunities both
to existing players as well as new entrants.. The country is witnessing a
period of boom in retail trade, mainly on account of a gradual increase in the
disposable incomes of the middle and upper-middle class households. More
and more corporate houses including large real estate companies are coming
into the retail business, directly or indirectly, in the form of mall and
shopping center builders and managers.
New formats like super markets and large discount and department stores
have started influencing the traditional looks of bookstores, furnishing stores
and chemist shops. The retail revolution, apart from bringing in sweeping,
positive changes in the quality of life in the metros and bigger towns, is also
bringing in slow changes in lifestyle in the smaller towns of India. Increase
in literacy, exposure to media, greater availability and penetration of a
variety of consumer goods into the interiors of the country, have all resulted
in narrowing down the spending differences between the consumers of
larger metros and those of smaller towns. Lastly I want to conclude my
project in some points-
The customers are attracting towards shopping malls & retail outlets.
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The shopping malls & retail outlets are targeting to middle class
customers because the purchasing power of this class is rapidly
growing as well as the class is also growing.
The young generation is fashion & show-off conscious so retail
outlets are mainly focused on them.
Most of the family wants to purchase from big showrooms and malls
because there are no bargaining system so the have a trust that there is
no cheating.
The main strength of most of the retail outlets are providing attractive
offers to attract customers.
Big retail stores are running customer loyalty programmes which has
increased profits and no. of customers.
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Chapter-13
Appendix
13. Appendix
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Questionnaire
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C) BETWEEN Rs 40,001 TO 50,000
D) MORE THAN Rs 50,000
1) Which type of place do you visit frequently for your shopping needs?
a) Supermarket
b) Wholesaler
c) Local Stores
3) Which one from malls/ Local Stores (kirana store) is more convenient for all your
shopping needs ?
a) Malls
b) Local stores
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6) What influences your buying selections?
a) Availability of range b) Reasonable price
c) Availability of size e) Customer service
f) Brand name
9) How frequently you visit the Store (wherever you go for the shopping)?
a) <1 month
b) 1-3 month
c) 1-6 month
d) 1 year
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Chapter-14
Bibliography
14. Bibliography:
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Goswami. P and Mishra. M, 2009, Would Indian consumers move from
kirana store to organized Retailers when shopping for groceries, Asia Pacific
Journal of Marketing and Logistics, Vol. 20, No. 1
BOOKS:-
Marketing Management. ----Kotler & Keller
Marketing Management in Indian Perspective
----V. S. Ramaswamy & S. Namakumari
Retail management ---Levy & Weitzs
WEBSITES:-
www.emraldinsight/1355-5855.htm
www.Fibre2fashion.com/industry-article
www.tataretail.com
www.retailindia.net
www.retailyatra.com
www.retailbiz.com
www.aboutus.com
www.businessworld.in
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