ePROCEEDINGS FOR 2011 INTERNATIONAL RESEARCH CONFERENCE AND COLLOQUIUM Contemporary Research Issues and Challenges in Emerging Economies

Consumer Buying Behavior in Organized Retail Business with reference to FMCG Sector

Shyamala Devi.B, Assistant Professor, School of Management, SRM University, Kattankulathur, Kanchipuram District 603203, Chennai, Tamilnadu, India shyamala_nishanth@yahoo.co.in Dr. Ravilochanan Professor, School of Management, SRM University, Kattankulathur, Kanchipuram District 603203, Chennai, Tamilnadu, India ravilochanan@gmail.com

ABSTRACT Organized retailing in departmental store format has caught up with the Indian public in a significant manner. From the days of depending on traditional small retail stores, the buyers have moved to organized retail department store and undergo different experience. The continued patronage to this format of retail business has resulted in a number of corporate entering in to this segment of retail business. With a number of players in the market, differentiation has turned out to be a compulsion rather than the option for these retail stores. While on the one hand these stores adopt various strategies to offer differentiated experience to the customers, how the customers have reacted to this experience is a question warranting analytical study at different points of time. Success at one stage does not ensure continued success, as customers expectations differ widely between two points of time. Hence, a research effort is undertaken with the specific objective of analyzing buyer behavior in different retail outlets. It is also aimed to identify the factors that influence the buying behavior of the customers. With this the status of customer experience in this format of retail business could be assessed, which would also serve the purpose of determining relative strengths of each of the retail stores taken up for the study.

KEYWORDS: Consumer buying behavior, Organized retail, FMCG, shopping behavior, Multi-brand retailing

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INTRODUCTION Consumer is the king and hence it is the consumer who determines what a business is, therefore a sound marketing program was started with a careful analysis of the habits, attitudes, motives and needs of consumers. In particular, a marketer should find answer to the following questions: What are the kinds products the customer buy? How they buy them? Where they buy them? CUSTOMER BUYING BEHAVIOUR In todays world purchases made by a customer is to satisfy his or her needs . All the behavioral activities carried out by a customer during and after the purchase of a product is termed so as buyer behavior. In this article we will come across the origin of buying ideas, what is buyer behavior, how consumer buy, why consumer buy, types, Decision process and what motives them. WHAT IS BUYER BEHAVIOUR? Our economy gets stronger depending upon the wealth of goods and services produced within the country. A huge number of alternative suppliers are present for almost all the products today: substitute products are available to consumers, who make decision to buy products. Therefore the main objective of the seller is please the consumer at all times. In order to be successful, a seller need to identify the customer, what they buy, when they buy, why they buy and how they buy. A buyer making a purchase of a particular product or a particular brand can be termed as product buying motives and the reason behind the purchase from a particular seller is known as patronage motives When a person gets his pay packet, and if he is educated, along with his wife he prepares a family budget, by appropriating the amount to different needs. It may happen that after a trip to the market, they could have purchased some items, which were not in the budget, and thus there arises a deviation from the budgeted items and expenditure. All these behavioral changes within human beings during the period of purchasing can be termed as buyer behavior. Consumer buys according to his/her needs: 1. Consumer desire is recognized The first step the consumer determines that he is not satisfied (i.e., consumers perceived actual condition) and would be keen in improve his/her situation (i.e., consumers perceived desired condition). For instance, internal triggers, such as hunger or thirst, may tell the consumer that food or drink is needed. External factors can also trigger consumers needs. Marketers are particularly good at this through advertising; in-store displays and even the intentional use of scent (e.g., perfume counters). 2. Information to be searched The next step is to undertake a search for information on possible solutions. The sources used to acquire the information may be minimized to the maximum like remembering the information from previous experiences (i.e., memory) or the consumer may extend considerable effort to collect information from outside sources (e.g., Internet, friends, other buyers etc.). How much amount of effort each consumer directs toward searching depends on factors such as: the importance of satisfying the need, similarity with available solutions, and the time available to collect the information. 3. Options are evaluated after use Consumers efforts may result in a set of options from which a choice has to be made. It should be noted that there may be two levels to this stage. At level one the consumer may create a set of Why they buy them? When they buy them? How often they buy them?

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possible solutions to their needs (i.e., product types) while at level two, the consumer may be evaluating the particular product or service (i.e., brands) within each solution. For example, if a consumer wants to replace his 100cc bike with a 150-200cc bike he has got plenty of options like PULSAR, KARIZMA, APPACHE, UNICORN, FZ, R15 etc. 4. Purchase In most of the cases the solution chosen by the consumer will match with the product. However, this may change at the actual time of purchase. The intended purchase may be altered at the time of purchase for many reasons such as: the product is out-of-stock, a competitor offers an incentive at the point-of-purchase (e.g., store salesperson mentions a competitors offer), the customer lacks the necessary funds (e.g., credit card not working), or members of the consumers reference group take a negative view of the purchase (e.g., friend is critical of purchase). 5. Evaluation after-purchase Once the purchase is over an evaluation of the decision is made. If the product performs below the consumers expectation then he/she will re-evaluate the satisfaction with the decision, which at its extreme and it may result in the consumer returning back the product. While in less extreme situations the consumer will retain the purchased product but may take a negative view of the product. Such evaluations are more likely to occur in cases of expensive or highly branded products. To help the consumers to ease the concerns with their purchase evaluation, marketers need to be receptive and also take initiative steps to encourage consumer contact. Customer service centers and follow-up market research are useful tools in helping to address the purchasers concerns. Why Consumers Buy: Purchases are made to satisfy the needs of the consumers. Some of these needs are basic and needed for survival, while other needs are not required for survival and vary depending on the purchasers taste and preferences. It probably makes more sense to classify needs that are not a necessity as wants or desires. In fact, in many countries where the standard of living is very high, a large portion of the populations income is spent on wants and desires rather than on basic needs. For example, in planning for a family vacation the mother may make the hotel reservations but others in the family may have input on the hotel choice. Similarly, a father may purchase snacks at the grocery store but his young child may be the one who selected it from the store shelf. So understanding consumer purchase behavior involves not only understanding how decisions are made but also understanding the dynamics that influence purchases. TYPES OF CONSUMER PURCHASE BEHAVIOR A consumer is faced with purchase decision daily. But not all decisions are given equal importance. Some decisions are more complex than others and thus they require more effort by the consumer. Other decisions are fairly like a routine and thus they require only little effort. In general, consumers face four types of purchase decisions: Minor New Purchase these purchases represent something new to a consumer but in the customers mind is not a very important purchase in terms of need, money or other reason (e.g., status within a group). Minor Re-Purchase these are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options (i.e., consumer is brand loyalty). Major New Purchase these purchases are the most difficult of all purchases because the product being purchased is important to the consumer but the consumer has little or no previous experience making these decisions. The consumers lack of confidence in making this type of decision often (but not always) requires the consumer to engage in an extensive decision-making process.

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Major Re-Purchase - these purchase decisions are also important to the consumer but the consumer feels confident in making these decisions since they have previous experience purchasing the product. For marketers it is important to understand how consumers treat the purchase decisions they face. If a company is targeting customers who feel a purchase decision is difficult (i.e., Major New Purchase), their marketing strategy may vary greatly from a company targeting customers who view the purchase decision as routine. In fact, the same company may face both situations at the same time; for some the product is new, while other customers see the purchase as routine. The implication of buying behavior for marketers is that different buying situations require different marketing efforts Consumer Buying Decision Process Nothing is more difficult and therefore, more precious, than to be able to decide is quoted to be the words of Napoleon. This is amply true in the case of consumer too. It is for this reason that the marketers are bound to have a full knowledge of the consumer buying decision process. However the actual act of purchasing is only one stage in this process and the process is initiated at several stages prior to the actual purchase. Secondly even though we find that purchase is one of the final links in the chain of process, not all decision processes lead to purchase. The individual consumer may terminate the process during any stage. Finally not all consumer decisions always include all stages. Persons engaged in extensive decision making usually employ all stages of this decision process. Whereas those engaged in limited decisions making and routine response behavior may skip some stages. The consumer decision process is composed of two parts, the process itself and the factors affecting the process. Economic Factors affecting the buyer behaviour 1. Disposal personal income: The economists made attempts to establish a relationship between income and spending. Disposal personal income represents potential purchasing power that a buyer has. The change in income has a direct relation on buying habits. 2. Size of family income: The size of family and size of family income affect the spending and saving patterns. Generally large families spend more and short families spend less, in comparison. 3. Income expectations: The expected income to receive in future has a direct relation with the buying behavior. The expectation of higher or lower income has a direct effect on spending plans. 4. Propensity to consume and to save: This goes to the habit of spending or saving with the disposal income of buyers. If the buyers give importance to present needs, then they dispose of their income. And buyers spend less if they give importance to future needs. 5. Liquidity of Fund: The present buying plans are influenced greatly by liquidity of assets i.e., cash and assets convertible into cash, e.g. bonds, bank balances etc., readily

6. Consumer Credit: Buy now and pay later plays its role effectively in the rapid growth of markets for car, scooter radio, furniture and the like.

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Economic model suggests behavioral hypothesis: Lower the price of the product, higher the sales. Lower the price of substitute products; lower the sales of the main product Higher the real income, higher the sales of the product. Higher the promotional expenses, higher the sales. Internal influences of buyers psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, Consumer behavior concern with consumer need consumer actions in the direction of satisfying needs leads to his behavior of every individual depend on thinking process. External influences of buyers culture, sub-culture, Locality, royalty, ethnicity, family, social class, reference groups, lifestyle, and market mix factors feelings. demographics,

Types of Consumer Buying Behavior Types of consumer buying behavior are determined by: Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. Buyers level of involvement determines why he/she is motiva ted to seek information about a certain products and brands but virtually ignores others. High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk could be classified as : Personal risk, Social risk and Economic risk Formats in Indian Organized Retail Sector 1. Supermarkets: A supermarket, also called a grocery store is a self- service store offering a wide variety of food and household merchandise, organized into departments. It is larger in size and has a wider selection than a traditional grocery store and it is smaller than a hypermarket or superstore. 2. Hypermarkets: A hypermarket is a superstore which combines a supermarket and a department store. The result is a very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine weekly shopping needs in one trip. 3. Department Stores: A department store is a retail establishment which specializes in satisfying a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice multiple merchandise lines, at variable price points, in all product categories. Department stores usually sell products including apparel, furniture, appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewelry, toys, and sporting goods. Certain department stores are further classified as discount department stores. Discount department stores commonly have central customer checkout areas, generally in the front area of the store. Department stores are usually part of a retail chain of many stores situated around a country or several countries.

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4. Shopping malls: A shopping mall or shopping centre is a building or set of buildings which contain retail units, with interconnecting walkways enabling visitors to easily walk from unit to unit. 5. Specialty Chains: A Specialty Chains is numbers stores which are specialized in a specific range of merchandise and related items. Most stores have an extensive width and depth of stock in the item that they specify in and provide high levels of service and expertise. They differ from department stores and supermarkets which carry a wide range of merchandise. FMCG Fast Moving Consumer Goods sector (FMCG) or Consumer Packaged Goods sector(CPG) refers to sectors that satisfies the elementary needs of a consumer other than grocery, ranging from packaged foodstuff, dairy products, cooking oil, bread, butter, cereals, beverages like tea coffee, pharmaceuticals, confectionery, biscuits, glassware, stationary items, watches, toiletries, detergents, shampoos, skin care products, cosmetics, toothpaste, dish washing liquid, shaving cream, razor, batteries, shoe polish, energy drinks, soft drinks, clothing, furniture and household accessories to electronic goods like cell phones, laptops, computers, digital cameras etc. These are usually categorized as Fast Moving Consumer Electronics or FMCEs. We know that a major part of a consumers monthly budget is spent on these goods. FMCG sector in India has grown in a phenomenal pace experiencing the changes in the taste and preference of the consumers during the last decade owing an increase in there incomes. Large scale and low cost production, modern retailing strategies, branding and maintenance of intense distribution network have given FMCGs an edge over others in raising hovering revenues. At present Indian FMCG sector is worth Rs. 1300 billion and expected to be around a whopping value of Rs. 4000 to Rs. 6000 billion by 2020. Thus we can see a huge job opportunities in the field of FMCG and its closest rival retailing sector in the field of marketing, retailing, operations, advertising, supply chain, logistics, human resources, product packaging and development, finance, operations, general management, supervising and so on. Hindustan Unilever Limited (HUL), Gujarat Co- operative Milk Marketing Federation Ltd (GCMMF), Indian Tobacco Company (ITC), Nestl India and Dabur India Limited are the oldest FMCG companies in India. Globalization has broadened the list of FMCG Companies in India. Foreign players like Cadbury, Godfrey Phillips, Johnson & Johnson, Procter & Gamble (P&G), Gillette, Pepsi Co, Britannia and Reckitt Benckiser, have registered a firm presence in India for last so many years now. Among other Emami, Asian Paints (India), Marico Industries Ltd., Colgate-Palmolive (India) Ltd., Henkel Spic, Modi Revlon, GlaxoSmithKline, Nirma Ltd and Godrej Consumer Products Ltd., lead the FMCG Companies chart in the country. The top contenders that take initiative in brand positioning and establish their products in the market are these leading FMNCG companies. Product differentiation, portable & attractive package styling, tag lines and punch lines in advertising, competent marketing and innovative product promotion strategies are very important for this industry to perform well. Due to high competition this sectors pressure on margins is very high that makes advertisement a prerequisite for this sector. FMNCG companies play a very vital role in bringing up the advertisement industry to such great height in India today and bringing up innumerable job opportunities and also helping the growth of the economy. Another factor that has brought up the job factor in this sector is that they raided the rural markets and performing very well there. The products that they produce are labor intensive products and not capital intensive which helps in widening up the opportunities. Problems faced by Retailers After agriculture industry the retailing industry is the largest employer in India. We can see that in the year 2004 the Indian retailing industry was just around Rs. 28,000 crores, which is around 3% of the total retailing market. Due to the sunrise in this industry in India we can expect a major turn. Day by day the top retailing giants keep on increasing their shares.

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Todays Retail in India comprised of organized and traditional retail formats, Indian Retail market is estimated to be worth US$ 511 billion, and is estimated to grow up to US$ 833 billion by 2013. The organized retail that currently accounts for less than 5 per cent of the total retail market is expected to register a compound annual growth rate (CAGR) of 40 per cent and swell to US$ 107 billion by 2013. A report by global consultancy firm, AT Kearney quote; The consumer spending in India has increased by an impressive 75 per cent in the last four years and will quadruple in the next 20 years. Moreover, India recently topped the Nielsen Global Consumer Confidence study, conducted by Nielsen, a market research company. The biannual report revealed that Indians are the most optimistic lot globally who think that their country will be out of the economic recession in the next twelve months. However the size of Organized Retail in India will exceed US$22bn mark from current level of about US$4bn with its space requirement touching over 220mn sq. ft., by 2010, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM), in a paper on `Retail Scenario in India and Its Related Issues , has stated that approx. 40mn sq. ft. is currently generating a business of about US$4bn in organized retail. Indias vast middle-class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets and India provides for the ideal locations. Since, Delhi and its suburbs have so far seen the growth of 100 bigger and smaller malls; roughly 600 new malls are coming up in other metropolis and large townships in which less than 35% of retail business is going to be transacted. It is seen that over 1000 malls are in the pipelines for smaller townships in which the retail sector is projected to grow at over 60% because of ample availability of land and increased purchasing power of the folks living in those areas aided by increased economic activities. Naturally, the large players will prefer to go there and put up their shops by sourcing their supplies from the places convenient to them. The major areas in which the retailing industries boom today in cities and metropolitan cities are in the field of food items, FMCG products, grocery, sportswear, outerwear, tailored clothing, eyewear, watches, footwear and accessories. The retail businesses that will predominantly stay with malls put up in metros and large cities will include apparel, pharmaceuticals, luxury goods and consumer durables. Need for the study-Review of Literature 1. Ecological labels do influence buyer behavior, however it is difficult to make this statement about Organic bread because of lack of supply and advertisement that makes it hard for people to get 1 information about existence of such bread. 2. Consumers decision making process includes problem identification, information search, and 2 evaluation of alternatives, outlet selection, and purchases/post purchase action. 3. Consumers around the world are different in various factors such as age, income, education level and preferences which may affect the way they avail of goods and services. Consumer behavior influences 3 namely: cultural, social, personal and psychological factors. 4. Consumers have more objective view of the nature of the attributes (e.g. food, cosmetics) because they are constantly being advertised and promoted. Similarly, consumer evaluation of a product can be 4 broken into evaluation related to product (tangible or physical attributes) and brand name. 5. The relationship between human values and consumer purchases, here was a significant association between human values (e.g. .achievement, self-direction, security etc.,).product preference and tangible 5 attribute importance with how consumers perceive the product and how they evaluate the product. 6. Price is another form of attribute used by consumers to evaluate a product. Price can sometimes be an indicating of quality, with a higher price indicating higher quality. Consumers perceive that a higher price can be attributed to the higher cost of quality control; some consumers are highly price sensitive, whereby a high price may shift consumers to competitive brands. Therefore price can have positive or negative 6 influences. 7. Consumer behavior is "the mental and emotional processes and the observable behavior of consumers 7 during searching purchasing and post consumption of a product and service.

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PERIOD OF THE STUDY The period of this study was June-July, 2011. Primary data was collected by distributing questionnaire to all consumers buying at the selected four Organized Retail Outlets. The location of the survey is Tambaram, a town with a vital link to the Chennai metropolitan city, where people of all walks of life reside. Research questions 1. To know the Psychology of consumers - how they think, feel, reason and select between different alternatives 2. How the consumer is influenced by his or her environment? 3. How the behavior of consumers influence them while shopping or making other marketing decisions? 4. How information processing abilities influence decisions? 5. How consumer motivation and decision strategies differ between products? 6. What are the ways to determine the factors that influence the buying behavior of consumers? Objectives of the study 1. To analyze the buying behavior of customers (with reference to selected products) to identify the behavior pattern among consumers. 2. To determine the factors that influences the buying behavior of consumers. 3. To map the consumer behavior in different selected retail outlets so as to capture the consumer preference for these outlets. Sample To know about the market and buyer behavior, primary data was conducted to the consumers in the market. Sample size was 100 respondents. Questionnaire was distributed to the consumers purchasing in organized retail shops. The four Organized retail shops selected are :RELIANCE , MORE , NILGIRIS and SPENCERS. These are the only organized retail stores in Tambaram town chosen for this study. Research Methodology Research design proposed for the study is descriptive type of research service this type of research deals with quality of responses from the respondents, attitudes, interests, technical skills, experience, behavioral, beliefs and values, emotions, personality, self-concept etc., Primary data were collected by questionnaire survey method based on a pilot study. Secondary data were collected from Journals and Research article to support the research.

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ANALYSIS AND RESULTS The frequency distribution of the demographic profile of the respondents is presented below: Table-1:Demographic Profile of the Respondents Age 16-31 32-47 Sex MALE FEMALE Occupation TEACHING CORPORATE EMPLOYEE Income (in Rs.) 1-100000 100000300000 Frequency 30 58 Frequency 73 26 Frequency 30 58 Percent 29.7 57.4 Percent 72.3 25.7 Percent 29.7 57.4 Valid Percent 30.0 58.0 Valid Percent 73.0 26.0 Valid Percent 30.0 58.0 Cumulative Percent 30.0 88.0 Cumulative Percent 73.0 99.0 Cumulative Percent 30.0 88.0 Cumulative Percent 73.0 99.0

Frequency 73 26

Percent 72.3 25.7

Valid Percent 73.0 26.0

From the demographic profile of the respondents, it is clear that majority of respondents [58%] belong to 32 47 age group. If this is taken as a reflective of the population, then it is clear that middle age consumers visit in large numbers the organized retail shops. This fact should be noted to analyse the various expectations of this age group so as to retain them. Males outnumber the females among the respondents. This means, all those factors which are gender specific need to be addressed properly so that the shops fulfill their expectations. Among the various categories of occupation, corporate employees constitute the majority among the respondents [58%]. The shops have a necessity to use this finding so that they give importance to expectations of this segment of consumers by focusing on the variables which reveal the preference of this group of consumers. It is interesting to observe that consumers in the income range of Re 1 to Rs. 1 lakh turn out to be the majority among the different income groups [73%] This is a very useful finding, with which the shops can decide on the products and brands which are preferred by this income group. As one of the objectives set for the study is to examine the pattern of buying behaviour among the respondents, F test was conducted for 1. Shopping frequency of consumers, 2. Opinion on billing facilities, 3. Availability of multi-brands and 5. Provision for replacement in case of supply of defective item. The results would help to give suggestions to shops so as to help them get regular business through customer flow. Next there is a necessity to examine the demographic profile of the consumers which impacts their preference of their shops. In this context, the following variables were selected and their relationship with the demographic features of the consumers was studied through Chi-square test. The variables selected were, buying decision, decision maker, decision criteria, shop facilities, billing, packaging and deliver, and shop location. The results would help the shop keepers to develop appropriate strategies for retaining the consumers.

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Findings F-Test--------------Shopping Frequency F test was conducted to ascertain whether the Respondents patronizing different Organized Retail Shops differ in terms of their purchase frequency. The result [F=0.00217] indicates that there is significant difference among the Respondents about the frequency of their purchase in selected Retail shops. This implies that each retail shop need to closely monitor the items purchased by the consumers and ensure maintenance of sufficient stock of these frequently purchased items. It is also necessary that these shops identify the reasons for the consumers not regularly buying. It would be advisable if the shop keeper has a facility to announce to the consumers about the new additions to their line of products and the brands. A help desk for the consumer is a value addition which the shops can plan. F-Test--------------Billing Facilities To know the comfort and convenience of consumers in billing facilities, F test was conducted to ascertain whether the Respondents patronizing different Organized Retail Shops. The result [F=0.00603] indicates that there is significant difference among the Respondents about the convenience in the billing counters in selected Retail shops. This implies that each retail shop needs to closely monitor the waiting time of the consumers at the billing counters. The number of counters to be provided need to be decided based on the peak time requirement. It should be noted that billing is the last contact point with the consumer and if it is not convenient, the consumers carry with them this experience and may choose not to return. Similarly, the staff who are posted at the billing counters should be fully trained so as to deal different types of consumers properly. They should be familiar with the payment through credit cards / debit cards / discount coupons, etc., so that time consumed for settling the payments is minimized. They need to be fully trained in handling consumer grievances and complaints without losing patience. They should also be empowered to certain extent, with which they can authorize replacement of defective pieces, attending to warranty calls and offering gifts to consumers as incentive, etc. Billing accuracy is one factor which can avoid explosive situations. Many organized retailers use billing software for this purpose. But any corruption in the software or failure can lead to embarrassing situations. The objective to be achieved at the billing counter should be to win the consumers and make them visit frequently the shop. F-Test--------------Multi brands To ascertain whether the Respondents patronizing different Organized Retail Shops differ in their preference for Multi brands. The result of F-test [1.54514] indicates that there is no significant difference among the Respondents about the availability of Multi brands. This is obvious as different age groups of customers prefer different brands and so availability of Multi brands of products in the shop would cater to the requirements of all the consumers. The shops need to focus on not only the brands to be stacked but also maintain the stock of each of them, so that no consumer would leave the shop disappointed over the non-availability of their choice of brand. Once a consumer gets this experience, he or she would certainly be looking for alternative shops to get his product regularly. The arrival of new brands needs to be communicated well to the consumers to grant them wider choice. F-Test--------------Replacement Provision F test was conducted to ascertain whether the Respondents patronizing different Organized Retail Shops differ in terms of Replacement provision. The result [F=8.94585] indicates that there is no significant difference among the Respondents about the Replacement provisions of the product in case of damage/defective. Every consumer would always strive to get the moneys worth and on occasions when this does not happen, the consumer would demand replacement. Unless the shops have the flexibility to replace, the shop might lose consumers. Further, by analysing the reasons for the replacement requests, the shops can also determine the relative strength of different brands. This would give them the valid base to communicate to the producers and suppliers and make them set right the scope for defect at the stage of production or distribution. Especially in a free access environment, different consumers handle the products in the shelf differently, this itself might cause damage to the products. Further while stacking

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the products in the shelf there is likely to be handling damage, which the consumer might not have noticed at the time of picking and might notice this while unpacking. Hence, it would be better to explore and identify various reasons for replacement requests from the consumer and necessary actions initiated to minimize such requests. This in turn, would help to maintain a clean image among the consumers prompting them to frequently visit the shop. Chi-square--------------Buying decision To examine the personal factor that influence in the buying decision, among a number of Respondent profile of factors, age was selected and its influences on buying decision was tested using chi-square test. The result [chi-square=0.005] indicates statistically significant relationship. This implies that the age of the respondent influence choice between product &brand. The presence of inverse relationship[r=-0.326] between age and buying decision indicates that the shopkeeper should focus more on middle age and young customers so as to meet their brand requirements. As regards customers of above middle age, the result implies that they chose the product of their choice, having used it for a longer duration. This finding confirms the findings of Schiffman & Kanuk-2004,which was reviewed above. Chi square--------------Decision Maker The personal factor that influence in the buying decision was examined, among a number of Respondent profile of factors, marital status, age and occupation were selected and their influences on decision making was tested using chi-square test. The result [chi square=0.000] indicates statistically significant relationship. This implies that the marital status of the respondent influence choice of products or brands. Married customers take decision in consultation with the wife or children. Once this is proved, the shops should train their sales personnel in convincing the spouse and children of a consumer. They need to understand the needs of this influencers and accordingly provide necessary explanation and support. This would enable the shops to sell more effectively. Chi-square--------------Decision Criteria Among a number of demographic profile of the respondents, age and income were selected and their influence on decision criteria was tested using chi-square test. The result [chi square=0.029, 0.012] indicates statistically significant relationship. This implies that the age and income of the respondent influence choice for quality, price, warranty/guarantee, and brand, Mode of payment and Ads. This finding confirms the findings of Batra & Karmi, reviewed above. This finding offers a vital lead to the shops. By analysing the customer data base, the shops should be able to develop a clear strategy addressing the requirements of consumers belonging to different age and income group. Using appropriate filter, the shops should be able to determine the brand choice of various age groups and income groups and based on that plan their inventories of various brands and ensure continued availability of these products. Chi square--------------Shop Facilities To examine the personal factor that influence consumers Shop facilities was studied in relation to the income and marital status of the consumers using chi-square test. The result [chi-square=0.000, 0.003] indicates statistically significant relationship. This implies that the income and marital status of the respondent influence the expectations about shop facilities such as Parking, Ambience, Lighting, Trolleys & Carry baskets, Children play area, display & interior, accessibility, layout, rest rooms, security. This finding confirms the findings of Beck, reviewed above. Based on this finding, the shops need to understand that consumer expectation is always high when they shop at organized retail shops. More than the availability of products and brands, the consumers would expect a pleasant shopping experience. At the point of purchase, if these facilities do not support, the consumers might prefer to visit other shops where these facilities provide better support. This would mean every such organized retail shop need to invest heavily on maintaining a very congenial and supportive facilities. This should be treated as an essential investment which would be recovered well when there is continuous consumer flow is experienced. A point of irritant in this context is, that apart from providing these supports, the

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shops need to ensure that these supports are functional and operational, as otherwise, inspite of providing these supports, the shops would only end up dissatisfying customers. Chi-square--------------Billing From the earlier finding of F test, it is known that billing is an important factor to be considered by the shopkeepers. But to examine how billing support is viewed by the consumers, sex, occupation and income were selected and their influences on decision criteria was tested using chi-square test. The result [chi-square=0.060, 0.001, 0.000] indicates statistically significant outcome. This means billing facilities influence the consumers views and especially there seem to be gender preference in this context. Usually women prefer hassle free payment arrangement. They demand clarification on any mistakes in the bill. So billing accuracy and the mode of payment need to be ensured by the shops. One more finding is that occupation of consumers and income level also has significant relationship with billing support. Generally it is reported that consumers who come by their own conveyance [two wheeler or four wheeler] prefer to pay through credit card or debit card. Corporate consumers use the company supplied discount coupons. This necessitates the shops to regularly interact with their frequent buyers and corporate clients so as to fine tune the billing to provide improve support. Chi-square--------------Packaging & Delivering Applying Chi-square test to study the relationship between packaging and delivering and various demographic elements of customer profile, it was found that occupation and income were indicating significant relationship [chi-square=0.004, 0.001]. Based on this the shops could understand that consumers of different occupation and income have different expectations about packaging & delivering at the right time, free door delivery. The organized retail format is more favoured by the consumers for the shopping convenience and packaged products. The consumer expectation does not end with the choice of products or making the payment, but how the products brought are delivered at their homes. Delay in delivery, pilferage and mishandling the product in transit, would all discourage consumers from buying from such shops. The delivery people have to be adequately trained to control their tempers, as at the point of delivery, they face the wrath of the consumers for any damage or loss. No consumer would accept a damaged piece, when the consumer has paid the full price for the product. Hence, the shops need to investigate more in to the customer data base and relate it with the delivery experience. Based on this necessary support to strengthen the delivery mechanism could be designed and implemented. Chi-square--------------Shop Location One of the proven experience is that customers give importance to the location of the shops while they choose the shop from which they would buy. As confirmed by Alhadeff, [reviewed above] shopping location has a significant relation with various demographic profile, to verify whether the sample respondents confirm this, Chi-square test was conducted to identify the demographic features which have high relationship with the choice of shop location. It was found that sex, occupation and income revealed significant statistical relationship with the choice of shop location [chi-square=0.0030.008, 0.095]. From this it could be inferred that among the consumers, women prefer a shop near office or home, while males may not consider location as a factor at all. Consumers in high positions and income would certainly consider shop location as an important factor, as this might be a source of their pleasant shopping experience. Generally such consumers would expect trouble free access and adequate parking as well as security support. Consumers in a metropolitan city would expect a sprawling shopping space, which would be possible only in the out-skirts of the city. At the same time, the choice of shop location may also be influenced by the type of goods purchased. Certain items of daily consumption, and frequent consumption, the consumer might prefer a nearby location while in the case of other products they might accept a distant location. This expectation need to be verified through a more extensive study.

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Table-2: Chi-square values for relationship between various variables Variables Buying decision Decision maker Decision Criteria Shop Location Shop Facilities Shop Timings Billing Billing Facilities Packaging Delivering Multi Brands Replacement Provisions Store Option CONCLUSIONS This paper has very vital findings useful to the organized retail shops. It brings to light that middle aged, males, working in corporate with an income of less than Rs. 1 lakh patronize the organized retail shops. This information can help the shops to suitably design their business strategies to address this segment of consumers with a specific focus. At the same time the findings of the F test reveal that consumers look for billing support, good shopping facilities, availability of multi brands and facility for replacing the defective goods. This finding would imply that every organized retail shop need to be more vigilant to monitor the changing preference of the consumers so that they can continue to maintain their customer base. The Chi-square results also confirmed the findings based on the frequency distribution as well as F tests. Hence, it is imperative that each organized retail shop should maintain the customer database and regularly analyze them to get the preferences of the customers. By offering what the consumers want products and facilities, these shops can certainly consolidate over period and grow. Age .005 .013 .029 .105 .333 .420 .789 .409 .430 .266 .335 .141 Sex .616 .986 .269 .003 .831 .749 .060 .229 .275 .855 .883 .819 Occupation .770 .011 .316 .008 .333 .477 .001 .295 .004 .455 .339 .581 Income .518 .762 .012 .095 .000 .335 .000 .358 .001 .507 .405 .532 Marital Status .228 .000 .748 .226 .003 .903 .634 .473 .634 .601 .532 .255

and

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REFERENCES Daria Bryunina., & Sara Khodadad Safaei. (2011). Publisher: University essay from Malardalens hogskola/Akademin for hallbar samhalls-Och teknikutveckling. Alhadeff,Y. (1982), Consumer Psychology in Behavioral Perspective: Para:2. Retrieved from www4.caes.hku.hk/acadgrammar/litrev/examples/litex4.htm. Batra.S,K., & Karmi,S,H,H. (2004). 'Consumer Behavior-Text and Cases'. New Delhi;Excel Books, Retrieved from www.papers4you.com. Kotler., & Armstrong. (2001), Coffee Experience and Consumer buying behaviour; Entrepreneurial Behavior on growth of small and medium Enterprise Research proposal paper. Beck,Year. (1975). HKU Social Science Student literature review: Psychology essay: Para: 3. Schiffman,L.G., & Kanuk,L.I. (2004). 'Consumer Behavior' New Jersey: Prentice-Hall Inc. Retrieved from www.papers4you.com.

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