I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 1
A Study of Select Discount Store Retail in Hyderabad for the Purpose of Identifying
Factors in Regards to Shopping Motives, Store Attributes , Shopping Outcome s and Perceived
IBS-ICFAI University,Plot No: 595, Malik House, Malik Chowk Dehradun, Uttarakhand,
Indian retail is a booming sector and mainly organizing retail sector is witnessing a radical
change. Indian consumers are looking for product variety as well as different retail chain
resulting increase in retail chain. One of the internationalized retail format is discount store
format. Managing this particular retail format in Indian culture needs an understanding of
Indian customers perception towards the discount store format. Shopping motive is an
important functional element to lead the shopper to market place. Shopping motives changes
based on culture, retail format, economic and social environment. This study ide ntifies the
driving shopping motives of Indian discount store shoppers . A total of 270 sample is taken
out of which 252 are considered for the final study. Factor analysis extracts three shopping
motives, two of which relate to hedonic shopping motive and one to utilitarian. The factors
are named as diversion, socialization and utilitarian. Other three dimensions of the study are
store attributes, shopping outcomes and shopping perceived cost. Under each dimension
factors related to discount store are identified. The identified factors can be the key for
discount stores for understanding their shoppers.
I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 2
Ke y wo rds : I ndia n re t ail, dis co unt s to re , s ho pping mo t ive s , s to re
at t ribute s , s ho pping o ut co me s , s ho pping pe rce ive d c os t .
Indian retail is a booming sector and mainly organized retail sector is witnessing a radical
change. Indian consumers are looking for product variety as well as different retail chain
resulting increase in retail chain. Organized retail in India is moving from novel experience to
innovative scale. Different retail formats with different strategy and target customer segment
are entering in to Indian retail. Different national and international players like Future group,
RPG, Shoppers stop, Mother care, Spencer’s, Walt Mart,etc have entered into the Indian
retail market in different forms of retail format and with different level of consumer
offerings. One of the internationalized retail format is discount store format. The most
prominent players of Indian discount store formats are Brand Factory of Pantaloon Retail
(India) Ltd’s; Megamart of Arvind Mills Ltd’s; Vishal Megamart, the discount store chain of
Vishal Retail Ltd; and Promart of Provogue (India) Ltd’s. Some new entrants have also
entered in last few months like The Loot (India) Pvt. Ltd, operating LOOT outlets, Krishna
Group’s The Grab Store . And even Multinational players like Warl Mart has entered in
Indian market venturing with Bharti Retail India Ltd. Retail formats are totally different in
terms of strategy from other retail formats.
Indian culture is different to any other culture. Understanding of shopping motives is
important, which can be a functional element of culture, social and economic environment.
In the current retail scenario of India , new retail format like discount store and makes an
interesting field of research work. The research question that arises is,” What makes Indian
consumer buy from a discount store?”. Supporting literature even broaden the scope of
I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 3
research. To find out the answer of above mentioned question it is need to identify culture
specific shopping motives of Indian discount store shoppers and their need related to store
attribute, and finally the shopping outcomes and shopping perceived cost accordingly.
The literature review carried out concerns broadly two aspects viz. one is shopping motives
and store choice and other aspect is discount store retail. Shopping motive is very important
aspect. It leads the consumer to market place and to make them fulfill their needs. The
shopping motive can be due to various reason. It can be just for product acquisition and even
can be for getting pleasure out of a shopping trip experience. Many research works have been
carried out on this subject. But, most relevant and pioneering works are discussed in this
The article “Marketing Notes And Communication” is a pioneering work for shopping
motives by Tauber. In the article Tauber has discussed first about three different functions
that are shopping, buying and consuming. In the study the author has find out shopping
motives, can be broadly divided into two categories – personal and social. Tauber has
concluded that shopping is not always buying and consuming. In the article “Work and/or
Fun : Measuring Hedonic and Utilitarian Shopping Value” Babin, Darden and Griffin, have
studied development of a scale to asses shopping experience of the consumer based on
utilitarian and hedonic value. In this study two values are considered: utilitarian and hedonic.
Utilitarian value is considered when there is a product purchase in efficient way and when
shoppers take shopping as a mission. Hedonic value relates to personal experience, pleasure
taken from a shopping trip. Finally the study concludes by develop ing a two dimensional
scale of perceived personal shopping value. Finally the study concludes by developing a two
dimensional scale of perceived personal shopping value. In the article “ Shopping Motives,
Emotional States, and Retail Outcomes”, Dawson, Bloch and Ridgway have highlighted
I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 4
motives, emotions and retail outcomes. The study proves that the consumers who come to
market with a strong product acquisition and experimental motives are having more pleasure
and arousal in market place in comparison to those who have no definite product and
experimental motive. In the study “Shopping Center Patronage Motives”, Bellenger,
Robertson and Greenberg have find two basic types of shoppers with regard to shopping
center selection. First are reactional shoppers who look for high quality center with variety
and a large number of shopping related services. Other types of shoppers are concerned about
convenience and cost. In their study “Uncovering retail shopping motives of Indian youth”,
Pavleen Kaur and Raghbir Singh have found shopping motives of Indian youth. The result
predicts that Indian youth consumers are having less utilitarian motives rather having more
hedonic motives. In the study “Excitement at the Mall: Determinants and Effects on
Shopping Response”, Kirk L. Wakefield and Julie Baker have find out that the excitement
level influence consumer response to the mall.
Discount store retail is a new internationalized retail format in Asia, though it is quite an
accepted format in the west and many a study is done on this format. But as the Western
culture is entirely different the studies of Asian perspective are considered and discussed in
Shopping motives play an important role in terms of driving the behaviour which leads
consumers to marketplace, consumer’s evaluation of a store’s attributes and subsequent
shopping outcomes. These are studied in the Korean context in discount store format by
Byoungho Jin and Jai-Ok Kim and discussion is done in the article “A typology of Korean
discount shoppers shopping motives, store attributes and outcomes”. Again, contribution of
private brand over retail sales is dependent not only on countries' retail structure, but also on
consumer characteristics for which private brand research in other international markets has
I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 5
been sparse. The literature to date has identified a number of consumer factors correlated
with store brand preferences. However, an attempt to integrate these findings into a solid
model for better comprehension is not being done. The study “ Integrating effect of consumer
perception factors in predicting private brand purchase in a Korean discount store context”,
by Byoungho Jin and Yong Gu Suh proposes a model that integrates consumer characteristic
variables toward private brand attitude and purchase intention, with the testing of the model
done in two product categories, viz- grocery and home appliances.
A pilot study was conducted for testing the questionnaire for avoiding future potential
problems with reference to the instrument. Reliability check of the instrument was also done.
The questionnaire for the study was distributed among 20 respondents to understand possible
problems concerning the research instrument. After the collection of responses from the
respondents regarding the problems of instrument, some changes and modification were done
in the questionnaire for the final study.
The purpose of this research is to understand the reason behind consumers shopping from a
particular discount store. Therefore, the target population is general shoppers who make
shopping trip to discount store. Due to time constraint it is impossible to get a complete
population in this research design. Selection of a sample frame becomes obvious.
In this research, the sample frame is some of the discount store retail in Hyderabad. The
shoppers from a particular discount store are the respondents. Sample size is decided on the
basis of 5:1 ratio (5 samples for every item of the questionnaire). As an itemized instrument
is used, for the 40 items (Exhibit 1), at least 200 samples are needed for the study.
I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 6
A questionnaire is developed for the study based on multi item scale of previous studies. The
questionnaire is having five sections: shopping motives, store attribute, shopping outcome,
shopping perceived cost and demographic profile. Except demographic profile all the items
are in seven point Likert scale (1 is for strongly disagree and 7 for strongly agree). Necessary
changes are made in the questionnaire after pilot study.
The present study was conducted outside two distinct discount stores in Hyderabd by
applying mall intercept method. 270 discount store shoppers participated in the survey. Out
of those administered responses, 252 were selected for the final study. Rest 18 were not taken
due to incompleteness of responses. The time taken for each respondent was on average of 10
minutes and the study was conducted during evening time and weekends for a continuous
period of two months.
Demographical profile is first taken into consideration for analysis and discussed. The
reliability check of the questionnaire is done and result is being stated. In the next part of data
analysis viz; exploratory factor analysis is done to extract the factors from the variable.
Respondents or rather discount store shoppers are asked to respond on six demographic
variables. They are age, gender, marital status, education, employment status and income.
Out of 252 respondents 138 are male that means 54.8% of the respondents. Rest of the
respondents that is 45.2% is female. As different level of ages are considered for the study ,
81 respondents are below the age of 25 years , 127 are of from the age group of 26-35 years,
32 respondents are from the age group of 36-45 years, 8 are from 46-60 years and 2
respondents are from the age group of 61 and above. From this statistics it is clear that most
of the young people mainly upto age of 35 years prefer more discount store. Percentage of
I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 7
male and female are equal 50 percent each or in numbers 126 respondents each in terms of
marital status. It is given in. Education wise 129 (51.2%) respondents are from post graduates
, next maximum respondents are graduates 38.9% (n=98), 7.5% (n=19) respondents are
undergraduates and the rest 2.4% (n=6) are having other educational background. As far as
professional profile of the shoppers are considered 147 (58.3%) respondents are
professionals, 34(13.5%) respondents are self employed, 23(9.1%) are students, 31 (12.3%)
are from other professional backgrounds and 17 (6.7%) respondents are wage employed.
Income is another parameter. 36.9%(n=93) respondents earn more than Rs.20000 per month.
Below Rs.10000 is the earning of 18.3%(n=46) respondents. 22.6%(n=57) respondents are
from Rs.10,000-15,000 and 22.2%(n=56) respondents are from Rs.15,001-20,000 income
Internal consistency for reliability check is done through Cronbach’s (1954) Coefficient
alpha. Cronbach's alpha is an index of reliability associated with the variation accounted for
by the true score of the "underlying construct." Construct is the hypothetical variable that is
being measured (Hatcher, 1994). The reliability of each construct exceeded the cut off level
of 0.60 for all the dimensions. Overall reliability happens to be .825. Values for the
Cronbach’s Alpha are shown in table Table No.1.
Table No. 1.Reliability Table
Attributes Cronbach ‘s Alpha
Shopping Motives .834
Store Attributes .688
Shopping Outcomes .916
Shopping Perceived Cost .669
Overall Reliability .825
I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 8
EXPLORATORY FACTOR ANALYSIS
Exploratory factor analysis is done to make the items loaded into factor under four
dimensions. Two methods are applied to do the factor extraction: Principle Component
Analysis and Maximum Likelihood Estimation (MLE). Both Eigen value criteria and Scree
plot are taken into consideration. Finally the extracted factors under four ways are checked
using all the above mentioned methods and finally the best loadings are taken for the study.
Correlation and significance of each item under all four dimensions are being checked. KMO
test is done, which shows all the results are satisfactory that means KMO result is more than
standardized 0.50, and Bartlett's Test of Sphericity is significant. Some of the items are
deleted as they were showing a low factor loading. The following table (Table No.2) is
showing KMO values. Items related to study are given in the appendix Exibit No.1.
Ta ble No 2.Re s ult o f KM O
Att ribute s KM O Re s ult
S ho pping M ot ive s .836
St o re At t ribute s .908
S ho pping O utc o me s .903
S ho pping Pe rce ive d Cos t .569
SHOPPING M OTI VES
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After doing a pilot study a total of 11 items related to shopping motives are taken for final
study. These items are taken from previous study (Dawson et al, 1990; Jin and Kim, 2003)
and are modified accordingly. All the items related to shopping motives have a loading more
than 0.50. Three factors have emerged after applying principal component analysis. Usage of
Eigen value criteria greater than 1 and Scree plot are taken into consideration for performing
factor analysis. Three factors have emerged. First two are related to hedonic value and last
factor relates to utilitarian value. First factor is named as diversion, second is socialization
and the last factor is named as utilitarian. Factors are taken row wise and items related to
factors are taken column wise. Factors loading of each item related to factors are explained in
Ta ble No .3. Fac to r’s re la te d to S ho pping M o tive s
Fa c to rs
D ive rs io n Soc ia lizat io n Utilita ria n
V1 0 .870
V1 1 .510
13 items are taken for study of store attributes. Three factors are loaded taking finally nine
items into consideration. Under store attribute one item related to internal and external shop
I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 1 0
convenience, two items related to fashion goods, and one item for price are deleted due to
low factor loading. Method of Maximum Likelihood Estimation (MLE) is done taking
varimax rotation. Factor specification is done after seeing the scree plot. Three factors
extracted are internal external shop convenience, neatness, value for price. Factor loading of
the items with factor is being shown in Table No 4.
No.4.Factors related to Store Attributes
Inte rnal and External Value for
Shop Convenience Neatness Price
No item under shopping outcomes is deleted out of 11 items, though one item related to
hopping excitement shows a low loading. The items get loaded to three factors. Method of
MLE is applied taking varimax rotation. Factor specification is done after observing Scree
plot. Three factors are level of excitement, shopping satisfaction and repatronage intention.
All the factors are having factor loading greater than .50. Factors loadings are shown in Table
Table No.5.Factors related to Shopping Outcomes
I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 1 1
Level of Repatronage Shopping Satisfaction
SHOPPING PERCEIVED COST
For shopping perceived cost 5 items are taken for study and no items are dropped. Two
factors are extracted .Method of Maximum Likelihood Estimation (MLE) for extraction is
done taking varimax rotation. Factor specification is done after observing Scree plot . Two
factors are named as unfamiliarity and shopping difficulty. The result of the fa ctors are
shown in Table No.6.
Ta ble No .6. Fac to rs re late d to S ho pping Pe rce ive d Cos t
Fa c to rs
Unfa milia rit y S ho pping
Dif f ic ulty
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The s tud y he lp s to find o ut unde r ly in g s hopp ing mo ti ve s o f the I nd ia n
d isco unt s to re s hopp er s. The mo tive s ar e b o th hed o nic s a nd utilita r ia n in
na ture. The id e ntif ie d s ho pp ing mo tive s o f d isc o unt s hopp er s a re d ive r s io n
mo tive , soc ia liza tio n motive a nd utilita r ia n mo tive. Disc o unt s to re s hopp er s
ha ve re spo ns es fo r the pa r tic ula r d is co unt s to re ’ s attr ib ute s, s hop p ing
o utco me s a nd s hopp in g p er ce ive d c os t inc ur r ed fo r ma k ing a tr ip to the
par tic u la r s to re. I n the s tud y so me impo r ta nt fac tor s ha ve co me o ut unde r
e ve r y co nc er n d ime ns io n o f d is co unt s tor e whic h ca n b e use fu l fo r s tra te gy
fo r mu la tio n to a ttra ct the tar ge te d c us to me r.
Ex hibit 1: I te ms c o ns ide re d fo r t he s t udy re la te d to e a c h dime ns io n
. S ho pping M ot ive s
Yo u do s ho pp in g to fo r ge t a bo ut da y to da y a nx ie ty
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Yo u do s ho pp in g to be r e fre s hed
Yo u d o s hop p ing to me e t a nd s pe nd time with fr ie nd s
Yo u d o s hop p ing to es cap e fr o m ro utine life
Yo u d o s hop p ing to ha ve a go od time
Yo u d o s hop p ing to b e e ne r gized
Yo u d o s hop p ing to e njo y c ro wd
Yo u s hop to watc h o the r pe op le
Yo u go fo r s hop p ing t o f ind the va lue fo r the mo ne y
Yo u go fo r s hop p ing to f ind p rod uc t as so rtme nt yo u ne ed
Yo u go fo r s hop p ing to ta ke a lo ok a t the p rod uc ts b e ing co ns id er ed
fo r p ur c has e
St o re At t ribute s
The s to re ha s a go od pa rk in g fa c ilit ie s
The s to re o ffe r s a ir coo le d or a ir- co nd itio ned e nv ir o nme nt
The s to re is c o nve nie nt to mo ve fro m o ne flo o r to a nothe r
The s to re is a go od p lac e fo r s hopp in g with c hild r e n
The s to re is c o nve nie nt b ec a us e it acc ep t cr ed it ca rd fo r pa yme nt
The s to re e mp lo yee s o f fe r co nve nie nt se r vic e
The s to re me r c ha nd is e is s pa c io us ly a nd we ll a r ra nge d
The s to re is p le a sa nt to s ho p in
The s to re is nea t
The pr ic e is ra ther high in co mpa r is o n to ma nu fac tur er s s ho wro o m p r ice
The pr ic e o ffe re d b y the stor e is r ea so nab le fo r the va lue
I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 1 4
The s to re ca r r ies va r ie ty o f fa s hio n good s
The s to re ca r r ies ma ny fa mo us br a nd
Sho pping O utco me s
The e xp er ie nc e o f s hopp ing is e xc it ing
The s ho p stimu la tes yo u to s hop fo r
Yo ur fee l gr ea t while s hop p ing
Yo u find yo ur s hopp in g e xp er ie nc e inte r es ting
The s ho p is a ppe a ling fo r fur the r s hop p ing
The o ve ra ll s hopp in g e xp er ie nc e is p le as a nt
I a m gr ea tly s atis f ie d with the s hopp in g at the s to re
I e njo y the o ver a ll s hopp ing in the s to re
I n futur e , yo u a re go in g to the s hop fr eq ue ntly
I n the futur e yo ur s hop p ing in the s tor e will be ve r y p rob ab le
I n the futur e yo ur s hop p ing in the s tor e will be lik e ly
Sho pping Pe rce ive d Cos t
It tak es muc h time a nd e ffo r t to s hop
It tak es lo ng wa iting time a t the c he cko ut c o unter
s ho pp ing wit h c hild r e n is time co ns uming
I a m fa milia r with the s to re as I used to s ho p he re
I a m fa milia r with the s to re la yo ut a nd d isp la y
I nte r natio na l Jo ur na l o f Glo ba l Bus ine ss, 3 (1 ), 1- 19 , J une 2 01 0 1 5
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