International Journal of Management, IT and Engineering
  • Year: 2015
  • Volume: 5
  • Issue: 4

Factors that determine the shopping behaviour of customers of organized and unorganized retail outlets: - a statistical survey of customer behaviour of shopping in Delhi/NCR

  • Author:
  • Pardeep Kumar
  • Total Page Count: 35
  • Page Number: 150 to 184

Associate Professor, Department of Commerce, Keshav Mahavidyalaya, University of Delhi, Pitampura, Delhi

Online published on 22 April, 2015.

Abstract

The retail sector has strong impetus to overall economic growth as a significant driver of the growth of services sector, which contributes more than 50 per cent of GDP. It has strong backward and forward linkages with other sectors like agriculture and industry through stimulating demand for goods and through mass marketing, packaging, storage and transport. Moreover, it creates considerable direct and indirect employment in the economy. Also, the consumers have benefited in terms of wide range of products available in a market. The retail business in India is estimated at grow at 13 percent per annum from US$ 322 million in 2006-7 to US$ 590 billion in 2011–12 and expected to be US$ 700 billion in 2015–16. The unorganized sector is expected to grow at about 10 percent per annum from US$ 309 billion in 2006-7 to US$ 496 billion in 2011–12 and expected to be US$ 650 billion in 2015–16. Organized retail which now constitutes a small four percent of retail sector in 2006-7 is likely to grow at 45–50% per annum and quadruple its share of total retail trade to 16 percent by 2014–15. Retailing in India came with evolutionary patterns from grocery store to super market/malls. This sector was un-organized in the initial stage, and after that it is carried forward and now it is growing as supermarket and hypermarket. The paper depicts the main drivers of the retail revolution in India and how this revolution changes the buying behavior of the customer, increase in disposable income of the middle class, infrastructure development and changing customer choice. Organized Retailing is introduced in the last decade and has emerged as one of the sunrise industries in India. The survey intends to analyze the consumer behavior towards organized and unorganized retailing, their source of purchasing and the factors which influences their mall purchasing in India. The research paper intends to find out the consumer behavior towards organized (supermarkets/malls, hypermarkets, departmental stores etc) and unorganized (local grocery stores, weekly bazaars etc) retail stores in Delhi/NCR. The study focuses on the consumer's satisfaction level from organized retail stores as well as unorganized retail stores. This research paper is based on respondents who buy their product at organized and unorganized retail outlets. The study has tried to find out consumer behavior of respondents when they shop through organized and unorganized retail outlets. As a part of consumer behavior, their perceptions, motivation levels and demographic factors were studied. The study has also tried to study the reasons for preference of retail outlets and the attributes that consumers look for when they visit retail outlets.

Keywords

Organized and unorganized retail outlets, Consumer behavior, Perceptions, motivation, Demographic Factors