Organized Retailing sector in India - An Empirical Study using Factor Analysis
Author: Suteekshan Dwivedi
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Abstract
The retail sector and its environment have experienced radical changes in the last decade. Most of the changes are due to changing demographics, and changes in the retail sector including the addition of This is focusing on the relative importance of the various products purchased at organized retail outlets and the choice of format, choice for Private Label brand and the acceptance level as well. The research paper is focusing on the descriptive variables viz., consumer perception and consumer loyalty and the process of estimating variables on brands. Retailing has emerged as one of the vibrant sectors globally. The retail landscape in India is shifting rapidly due to the entry of many foreign and domestic players. The changing consumer behaviour has led to retail transformation of this magnitude. The country is witnessing a paradigm shift in the pattern of retailing from traditional to the most vibrant organized sectors in almost all categories of retails business in Indian cities.
Keywords
Consumer Behaviour, Retailing, Organized Retail, Marketing, Empirical, traditional.
Conclusion
With market liberalization, especially in retail sector, the global retailing is witnessing phenomenal changes. The focus has shifted from traditional retailing to organized retailing with the entry of number of players globally. With increased variety of retail formats and inclusion of many other marketing mix strategies understanding the best mix that influences consumer demand is a challenge. This paper is an attempt to explore Consumer Behaviour towards marketing mix in organized retain with specific reference to Mangalore city. Of the total sample used in the study, majority were females, graduates, salaried employees belonging to the age group of 25 to 45 years. The study reveals that Marketing Mix Parameters such as People, Physical Evidence, Price, Process and Promotion have a very significant impact on consumer behaviour in Organized Retail, whereas Place and Product parameters show a slightly lower level of significance. The study concludes that all the marketing mix parameters play a significant role in consumer behaviour but Promotional Schemes, Pricing and Process are the prominent ones. To withstand the competition the retail stores must know the reasons behind the choice of retail stores and must provide those facilities to attract the customers. Apart from these, the purpose of visiting the retail stores varies according to age, gender and educational qualification and that has to be considered to gain the market share. The success of retail sector reveals the growth of the organized retail stores. The rapidly increasing the expectation of the customer in different manner.
Everyone knows that reliability of customers is the reflection of trust. Normally if we want to get the loyalty of the customers, we have to fulfill the needs, wants, demand and expectations of the customers. The retail business also has to follow the same sense of service to obtain the reliability of the customers. The organized retail stores have need to be updated their products and services in the nature manner and also take the necessary steps to remove the outdated products. The penetration pricing strategy can be considered to attract the urban customer as well as rural customer also. If the service is followed in the right manner customer may tend to stay on the department stores themselves.
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