Synopsis of Major Research Project

On
A STUDY OF CONSUMER PREFERANCE BETWEEN MEGA MORE &
BIG BAZAAR STORES

MASTER OF BUSINESS ADMINISTRATION

Submitted to

Chandigarh Group of Colleges

Landran, Mohali

RESEARCH SUPERVISOR: RESEARCHER:

Mrs. NEHA AARISH MADAAN

1
 INDEX

S.NO CONTENTS Page no.

1. Introduction 4

2. Review of literature 9

3. Rational 11

4. Objectives of study 12

5 Research Methodology 12

6 Bibliography 13

7 Web Bibliography 14

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TITLE:-

A STUDY OF CONSUMER PREFERANCE BETWEEN MEGA MORE &

BIG BAZAAR STORES

Introduction
Over the last few years, retail has become one of the fastest growing sectors in
the India. Though the country has largest number of retail outlet in the world,
they all arent organized. Indian retail sector is highly fragmented and organized
retail in the country is at very nascent stage. The organized retail industry in
India is expected to grow 25-30 % annually. Retailing is gradually moving
towards being the next boom industry. Consumers will be the major
beneficiaries of the retail boom. The Indian consumer is changing rapidly. They
now have a choice of wide range of products, quality and prices. Organized
retailing is changing the whole concept of shopping in terms of consumer
buying behaviour. In such a scenario, consumer decision making is of great
interest for consumer educators and marketers interested in serving the
consumer (Cannibal, 2002). Therefore, there is clearly a need for research on
this issue in India. In this study, an attempt was made to study the consumer
decision making styles in shopping malls of India.
Organized retail stores are characterized by large professionally managed
Formats stores. They provide goods and services that appeal to customers, in an
excellent ambience. This is created based on consumer preference Analysis and
offer good value.
Retailers and marketers often seek to learn how and why people shop. The
consumer decision making process is a complex phenomenon. The purchase of
goods or services includes a number of factors that could affect each decision.
Decision making is more complex and even more important for consumers
today than in the past. Consumers are besieged by advertising, news articles, and
direct mailings that provide an abundance of information, much of it with mixed
messages. In addition, increases in the number and variety of goods, stores, and
shopping malls, and the availability of multi component products and electronic
purchasing capabilities have broadened the sphere for consumer choice and have
complicated decision making (Ahlstrom et al., 1992).

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 Retail is clearly the sector that is poised to show the highest growth in the next
five years. The sector is set for a revolution, as both the present players and new
entrants are gearing up to explore the market. This sector contributes 10% of
India's GDP and the current growth rate is 8.5%. The present size of the
organized retailing sector is approximately 3% and is expected to grow to 25 -
30% by the year 2010. There are about 300 new malls, 1500 supermarkets and
325 departmental stores currently under construction? Many players are coming
up with huge investments, due to which the present 12 million mom-and-pop
shops and Karana stores fear losing their business. Most predictions say that the
sector might reach to US$ 400-600 billion by the year 2010. Global retail giants
such as Wal-Mart, Tesco, Germany's Metro AG and many others are ready to
enter the retail markets. The rising demand of branded Organized

Retail stores are characterized by large professionally managed formats stores.

They provide goods and services that appeal to customers, in an excellent
ambience. This is created based on consumer preference analysis and offer good
value.

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INTRODUCTION MEGA MORE

Aditya Birla Retail limited is the retail arm of Aditya Birla Group a USD 28
Billion corporation. The company ventured into food and grocery retail sector in
2007 with the acquisition of a south based supermarket chain. The Indian
consumer is changing rapidly. They now have a choice of wide range of products,
quality and prices. Organized retailing is changing the whole concept of shopping
in terms of consumer buying behaviour. In such a scenario, consumer decision
making is of great interest for consumer educators and marketers interested in
serving the consumer (Cannibal, 2002). Therefore, there is clearly a need for
research on this issue in India. In this study, an attempt was made to study the
consumer decision making styles in shopping malls of India.

Organized retail stores are characterized by large professionally managed

Formats stores. They provide goods and services that appeal to customers, in an
excellent ambience. This is created based on consumer preference Analysis and
offer good value. Retailers and marketers often seek to learn how and why people
shop. The consumer decision making process is a complex phenomenon. The
purchase of goods or services includes a number of factors that could affect each
decision. Decision making is more complex and even more important for
consumers today than in the past. Consumers are besieged by advertising, news
articles, and direct mailings that provide an abundance of information, much of it
with mixed messages.
In addition, increases in the number and variety of goods, stores, and shopping
malls, and the availability of multi component products and electronic
purchasing capabilities have broadened the sphere for consumer choice and have
complicated decision making (Ahlstrom et al., 1992).Retail is clearly the sector
that is poised to show the highest growth in the next five years. The sector is set
for a revolution, as both the present players and new entrants are gearing up to
explore the market. This sector contributes 10% of India's GDP and the current
growth rate is 8.5%. The present size of the organized retailing sector is
approximately 3% and is expected to grow to 25 - 30% by the year 2010. There
are about 300 new malls, 1500 supermarkets and 325 departmental stores
currently under construction? Many players are coming up with huge
investments, due to which the present 12 million mom-and-pop shops and
Karana stores fear losing their business. Most predictions say that the sector
might reach to US$ 400-600 billion by the year 2010. Global retail giants such
as Wal-Mart, Tesco, Germany's Metro AG and many others are ready to enter
the retail markets. The rising demand of branded Organized

5
Retail stores are characterized by large professionally managed formats stores.
They provide goods and services that appeal to customers, in an excellent
ambience. This is created based on consumer preference analysis and offer good
value.

INTRODUCTION TO BIG BAZAAR

The variety of product range in Big Bazaar: this large format store
comprise of almost. Everything required by people from different
income group .it varies from clothing and accessories for al
gender like men. While retail forms the core business activity of Future Group,
the group has developed significant presence in consumer finance, capital,
insurance, brand development, retail media and logistics.
Pantaloon Retail (India) Limited, is India's leading retailer that operates multiple
retail formats in both the value and lifestyle segment of the Indian consumer
marker. Headquartered in Mumbai (Bombay), the company operates over 7 million
square feet of retail space, has over 1000 stores across 51 cities in India and
employs over 24,000 people. The company's leading formats include Pantaloons, a
chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food
Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with
aspects of modern retail like choice, convenience and quality and Central, a chain
of seamless destination malls. Some of its other formats include, Depot, Shoe
Factory, Brand Factory, Blue Sky, Fashion Station, all, Top 10, bazaars and Star
and Sitar. The company also operates an online portal, futurebazaar.com. Pantaloon
Retail (India) Limited, is India's leading retailer that operates multiple retail
formats in both the value and lifestyle segment of the Indian consumer marker.
Headquartered in Mumbai (Bombay), the company operates over 7 million square
feet of retail space, has over 1000 stores across 51 cities in India and employs over.

Future Group,
Led by its founder and Group CEO, Mr. Kishore Biyani, operates some of Indias
most popular retail formats that include Pantaloons, Big Bazaar, Central, Home
Town, Ezone and Food Bazaar. While retail forms the core business activity of
Future Group, the group has developed significant presence in consumer finance,
capital, insurance, brand development, retail media and logistics.
The groups retail formats bring in around 250 million customer footfalls every
year and provide a platform for over 30,000 small, medium and large entrepreneurs
in India to sell their products and services to these customers. The group has a
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retail presence in 85 cities and 65 rural destinations and employs over 35,000
people directly.
The groups flagship enterprise, Pantaloon Retail India Limited was founded in
1987 and is listed in the Bombay Stock Exchange and National Stock Exchange
since 1991. The company along with its subsidiaries operates around 16 million
square feet of retail space in the country. Other group companies include, Future
Capital Holdings, a financial services company, Future Ventures, engaged in
operating and investing in allied businesses, Future Supply Chain Limited which
operates a nation-wide logistics and warehousing network, Future Brands India
Limited, a brand and intellectual property rights development corporation.

Review Literature

Peters and Peter Fisher (2004) The University of Iowa is probably the most
comprehensive survey yet published. Their paper, "The Failures of Economic
Development Incentives," appeared in the Journal of the American Planning
Association and evaluated a wide body of other scholarly articles on economic
development programs. These programs included targeted tax incentives,
enterprise zones, tax-increment financing, industrial revenue bonds and "non-tax
discretionary incentives."
As with many previous literature reviews, the findings were somewhat ambiguous,
but on balance Fisher and Peters surmise that these programs are either ineffective,
or the costs exceed the alleged benefits.

Ahlstrom et al. (1992) used the CSI to identify the decision-making styles of
Korean students. They confirmed seven of the eight factors using Spools &
Kendalls analytical methods and conceptual framework. The only factor that was
not confirmed was novelty fashion consciousnesses. They attributed this to
possible links between brand consciousness and fashion consciousnesses
among young Korean consumers.
Hiu et al. (2001) administered the CSI to 387 adult consumers in China. Their findings
indicate that five decision-making styles are valid and reliable in Chinese Culture. These styles
were Perfectionist, novelty-fashion conscious, recreational, price conscious, and confused by
over choice.
Gary Sands (October 2007)Wayne State University and Laura Reese of Michigan
State University released a paper for the Michigan Land Use Institute examining

7
the performance of "Public Act 198" tax abatements, which are frequently part of
the MEGA deals described earlier. Sands and Reese found that abatement data "fail
to show a clear, consistent relationship between abatement activity and change in
economic health" from 1980 through 2001.
Dafna Schwartz (2008) Ben Gurion University of the Negev, Joseph Pelzman of
George Washington University, and Michael Keren of Hebrew University of
Jerusalem published in Economic Development Quarterly a study titled "The
Ineffectiveness of Location Incentive Programs: Evidence from Puerto Rico and
Israel." The authors concluded that the programs led to short-run gains in
employment, but did not improve the fundamental economic situation in the areas
targeted.

Michael Mintrom (1995) In a 1995 study, then-Michigan State University

assistant professor of political science Michael Mintrom and graduate student
Lucinda Ramsey posited that politicians use incentive programs as a way to signal
that the state is friendly to commerce and trade when more fundamental
government policies may not be. The authors described this as a form of public
"policy cheap talk.

Peters and Peter Fisher (2004) a meta-review of economic development literature

in 2004 by Alan Peters and Peter Fisher of the University of Iowa is probably the
most comprehensive survey yet published. Their paper, "The Failures of Economic
Development Incentives," appeared in the Journal of the American Planning
Association and evaluated a wide body of other scholarly articles on economic
development programs. These programs included targeted tax incentives,
enterprise zones, tax-increment financing, industrial revenue bonds and "non-tax
discretionary incentives."
As with many previous literature reviews, the findings were somewhat ambiguous,
but on balance Fisher and Peters surmise that these programs are either ineffective,
or the costs exceed the alleged benefits.

RBI (2006), Press Release 2006-2007 According to it Indian economy has

shown an impressive growth of over 6 percent for last five years and continues to
surge ahead. GDP growth rate in 2003-04 recorded a fifteen year high of 8.5% and
subsequently maintained a steady growth for the next two years. Real GDP growth
accelerated from 7.5% during 2004-05 to 8.4% during 2005-06 on the back of
buoyant manufacturing and services activity supported by a recovery in the
agricultural sector. The central bank forecasts similar growth of 7.5 -8 % during
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2006-07. With strong economic growth consumerism is increasing in three
countries and India is the fourth largest economy as far as purchasing power parity
is concerned, just behind USA, Japan and china.

Sproles and Kendall (1986) Define a consumer decision making (CDM) styles a
mental orientation characterizing a consumer's approach to making
choices.Broadly speaking, there are 3 types of approaches in studying consumer
decision-making styles Psychographic/lifestyle approach, which identifies
hundreds of characteristics related to consumer behaviour. Consumer
characteristics approach, which focuses on different cognitive dimensions of
consumer decision making (cf. Fan et al., 1998).In the extant consumer behaviour
literature, most studies assume that all consumers approach shopping with certain
decision-making traits that combine to form a consumers decision-making styles.
Academicians and researchers have long been interested in identifying these
underlying decision styles of shoppers.

Rationale

To find out the nature and behaviour of the consumers, the buying habits of whom,
shall bring Big Bazaar into the race of Organized Retail in competition to MNCs
like Wal-Mart, who are into the sales of same product lines.

OBJECTIVE OF THE STUDY

to study the consumer buying behaviour in BIG BAZAAR located in .

to suggest appropriate strategies to consumer perception on organized retail

store BIG BAZAR.
To investigate the consumer decision making styles in shopping Malls.
To study variations in the consumer decision making styles across different
demographic variables.

RESEARCH METHODOLOGY

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Types of research:-

1. The study:
The research will be analytical in nature as it will be dealing with the Quality
service and customer satisfaction Viz. Mega more & Big Bazaar. Empirical
research is a way of gaining knowledge by means of direct observation or
Experience. It is used to answer empirical questions, which must be precisely
defined and Answerable with data (e.g., "Does listening to vocal music during
learning a word list have an Effect on later memory for these words?"). Usually,
a researcher has a certain theory regarding the topic under investigation. Based
on this theory some statements, or hypotheses, will be proposed (e.g., "Listening
to vocal music has a negative effect on learning a word list."). From these
hypotheses predictions about specific events are derived (e.g., "People who
study a word list while listening to vocal music will remember fewer words on a
later memory test Than people who study a word list in silence."). These
predictions can then be tested with a Suitable experiment. Depending on the
outcomes of the experiment, the theory on which the Hypotheses and predictions
were based will be supported or not. Exploratory research is a type of research
conducted for a problem that has not been clearly defined.

DATA COLLECTION
This research requires two types of data i.e. secondary data and primary data
Primary data has been used abundantly for the study.
2.1 Primary data
For the conduct of the research, the Primary data will be collected through the use
of 50 structured questionnaires which will be circulated among the customers.

2.2 Secondary data

The secondary data will be collected through various sources like Journals,
magazines, and other researches done by the researchers.

BIBLIOGRAPHY
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 Berman berry, evansjoel R (2007) an introduction to retailing Retail
Management, Pearson education (Singapore) private ltd, pp.3, eighth
edition.
Retail marketing in India Key Issues and challenges (2008), Marketing
Mastermind, Feb 2008, pp.19
Emerging trends in retail sector, (2007) Journal of IMS Group, July- Dec
2007 pp.30, Volume 4 no.2
Kothari, C.R, (2007). Research Methodology, New Age International
Publishers.

WEBLIOGRAPHY
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 http://www.oppapers.com/essays/Big-Bazaar/134332
http://in.search.yahoo.com/search;_ylt=A8pWB9qMoZlN.R4Aj
z_uPXRG?p=+MEGA+MORE+&fr2=sb-top&fr=yfp-
t704&rd=r1
http://www.google.co.in/#hl=en&source=hp&q=introduction
+in+big+bazzar&oq=introduction+in+big+bazzar&aq=f&aq
i=&aql=f&gs_sm=e&gs_upl=406l4578l0l10l10l0l4l0l0l1234l
1234l7-
1l1&bav=on.2,or.r_gc.r_pw.&fp=7db8947d3adc133d&biw=1
024&bih=571
http://www.google.co.in/search?
sclient=psy&hl=en&site=&source=hp&q=literature+review
+in+mega+more&btnK=Google+Search
http://www.google.co.in/search?
sclient=psy&hl=en&site=&source=hp&q=literature+review
+in+mega+more&btnK=Google+Search#sclient=psy&hl=e
n&source=hp&q=literature+review+in+big+bazzar&aq=f&a
qi=&aql=&oq=&pbx=1&bav=on.2,or.r_gc.r_pw.&fp=8c556c
a1bdcd807&biw=1024&bih=571
http://www.docstoc.com/docs/46500277/BIG-BAZAAR-
RESEARCH-PROJECT

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