Consumer Behaviour and Pricing Strategies in Retail A Study of Grocery and Consumer Goods Items

Identifying consumer preferences and develop appropriate pricing strategies is very critical for the success in retail sector. This study analysed consumer behavior with respect to buying of groceries and consumer goods like staples (atta, rice, cooking oil, sugar etc), personal care and toiletries (Oil, shampoo, soaps) and fruits and vegetables. These items constitute major part of the monthly grocery requirements of consumers. A survey of 100 households in Faridabad found that consumers are loyal to their neighborhood kirana stores because of the regular discounts on most of the items they receive at kirana store. Consumers visit shopping fest, but rarely buy groceries there. Consumers compare prices at different stores and keep it in mind. Majority of consumers buy bulk of groceries at the beginning of the month indicates importance of timing of pricing strategy by a retailer. Convenience is the most important factor in the choice of stores for consumer of all age groups and occupations. The study makes few suggestions to retailers on the basis of findings of the study.