Consumer Perception of Retail Store in India

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					        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
                                           Shopping Cost


                                    Supernova Chakraborty
                                       Research Scholar
     IBS-ICFAI University,Plot No: 595, Malik House, Malik Chowk Dehradun, Uttarakhand,
                                         India-248006
             supernova.chakraborty@gmail.com/supernova_in2003@yahoo.com




   Abstract

   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 .




INTRODUCTION

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.

LITERATURE REVIEW

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

regard.

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

detail.

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.

METHOD

PILOT STUDY

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.

SAMPLING DESIGN

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.

INSTRUMENT DEVELOPMENT
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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.

 DATA COLLECTION

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.

DATA ANALYSIS

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.

 DEMOGRAPHICS

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

level respectively.

RELIABILITY

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
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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

table no.3

             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           .823
                V2           .879
                V3           .815
                V4           .846
                V5           .873
                V6           .832
                V7                              .857
                V8                              .882
                V9                                                  .844
               V1 0                                                 .870
               V1 1                                                 .510



STORE ATTRIBUTES

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
                                                Factors
                         Inte rnal and External                         Value for
                         Shop Convenience                Neatness          Price
            V1                    .815
            V2                    .852
            V3                    .754
            V4                    .608
            V5                    .565
            V6                                            .796
            V7                                            .846
            V8                                            .674
            V9                                                            .499




SHOPPING OUTCOMES

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

No.5.

                 Table No.5.Factors related to Shopping Outcomes
                                               Factors
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                         Level of       Repatronage           Shopping Satisfaction
                        Excitement        Intention
            V1           .795
            V2           .732
            V3           .794
            V4           .421
            V5           .713
            V6           .687
            V7                                                      .662
            V8                                                      .892
            V9                            .616
            V10                           .801
            V11                           .867




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
                       V1                                       .699
                       V2                                       .544
                       V3                                       .799
                       V4               .919
                       V5               .830
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CONCLUSI ON

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
     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 3


  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
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    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 7


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