Description
Case Study on Effect of Demographic Variables in Selecting Retail Outlet With Reference to Durable Goods in Chennai:- Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery.
Case Study on Effect of Demographic Variables in Selecting Retail Outlet With Reference to Durable Goods in Chennai
ABSTRACT Retail industry is continuously going through changes on account of liberalization, globalization and consumer preferences. While multinational retail chains are looking for new markets, manufacturers are identifying, redefining, or evolving new retail formats. The existing retail houses are also gearing up to face the emerging competition from the organized sector and the changing outlook of the consumers. The main aim of this study is to find the factors influencing a customer to choose a retail store when buying Durable Goods and its effect on demographic variables. By understanding the same retailers can try and improvise on these factors and thereby increase their chances of converting the new customer into a loyal customer. Key words: Retail outlets, shopping, Factors influencing selecting retail outlet. INTRODUCTION Shoppers were classified as "routine" - who have higher opportunity cost and "random" - who face low opportunity cost of time and search more widely across stores within larger stores for the best price by Kim and Park (1997).Ackerman and Tellis (2001) studied cross-cultural differences between Chinese and Americans in terms of shopping behavior. Kim and Jin (2001) studied the profiles of Korean shoppers of multinationals versus Korean discount stores and found that a higher percentage of the shoppers who have full- time jobs tend to patronize the multinational discount stores. However, there are no significant differences between the two groups with respect to age, family size, education level, and income. The studies are generally restricted to comparisons of behavior within the same store format, that is, they are limited to only supermarkets or to only discount stores.
186
International Journal of Management (IJM), ISSN 0976 - 6502(Print), ISSN 0976 6510(Online), Volume 3, Issue 2, May-August (2012)
LITERATURE REVIEW Researchers have identified a number of factors influencing store choice. Morschett et al. (2005) summarise these to include product quality, assortment, 1?stop, price, speed and quality of service and the atmosphere of the in?store experience. They identify which attributes contribute to the store choice decision, but not why these attributes are or are not important. This is an important gap to investigate in order to ascertain the importance of the firm's size and offering in a period of rationalisation, where smaller stores are losing out to larger format ones (Sinha and Banerjee 2004). Meyer and Eagle (1982), Brooks et al. (2001) and Fotheringham (1988) hold that store choice is very much driven by location; hence large?scale retailers often focus on a geographic position strategy. Brooks et al. (2001) puts forward the idea that although location is amongst the most important driver of store choice, there are in fact 'trip chains' that give rise to effects like collocation and overall purpose. Research into store choice needs to consider not just location but relevance to other shopping, to home and the workplace.
METHODOLOGY The research design used in this research is descriptive in nature.150 respondents were selected on convenience sampling method, and asked to give their opinion on selecting retail outlet using a structured questionnaire. The study focuses to identify the influence of customers' age in selecting durable retail outlet. Later the data are complied with statistical analysis to derive the results. RESULTS AND DISCUSSION TABLE 1: Demographic Profile of the respondents
RESPONDENTS FREQUENCY PERCENTAGE Male 85 5743 Female Total 65 150 100
RESPONDENTS FREQUENCY PERCENTAGE 20-25 14 9.3 26-30 31-35 36-40 41 & Above 23 65 35 13 15.343 .323.4 8.7
187
International Journal of Management (IJM), ISSN 0976 - 6502(Print), ISSN 0976 6510(Online), Volume 3, Issue 2, May-August (2012)
Total
150
100
RESPONDENTS FREQUENCY PERCENTAGE Below 50,000 35 23.337 5 0 ,0 0 0 - 6 0 ,0 0 0 6 0 ,0 0 1 - 7 0 ,0 0 0 7 0 ,0 0 1 - 8 0 ,0 0 0 Above 80,000 Total 56 35 16 8 150 .323.31 0.65.34 100
It is inferred from the above table that out of 150 respondents 57% are Male; 43.3% of the respondents are between 31-35 years of age; 37.3% of the respondent's monthly income is 50,000-60,000. TABLE 2 Factor influencing selecting the retail outlet: RESPONDENTS FREQUENCY PERCENTAGE Shopping Environment 13 8.67 Parking Space 21.341 32 Store Ambience 3.3 20 Customer care 10.67 16 Availability of preferred brands 46 69 Total 100 150 Inference: It is inferred from the above table that out of 150 respondents 46% of the respondents selecting retail outlet are mostly based on availability of preferred brands,32% based on parking space & 20% based on store ambience
TABLE 3 Chi-Square table for Factors influencing in choosing the retail outlet & Age. H0: There is no significant relationship between factors influencing in choosing the retail outlet & Age
188
International Journal of Management (IJM), ISSN 0976 - 6502(Print), ISSN 0976 6510(Online), Volume 3, Issue 2, May-August (2012)
H1: There is significant relationship between factors influencing in choosing the retail outlet & Age O 2 4 1 3 4 5 4 3 5 6 3 12 94 37 26 42 21 16 32 1 E (O - E)2 1.21 0.62 2.98 1.04 1.86 0.73 1.49 2.28 6.44 5.95 1.99 9.06 4.90 0.81 3.06 3.6 2.45 6.50 20.2 10.5 6.91 5.63 3.24 13.8 0.11 8.66 8.58 6.93 50.4 29.9 1.06 3.03 2.13 7.46 0.43 4.66 2.99 3.73 24.01 16.1 0.01 1.12 10.43 2.77 1.61 1.73 0.38 1.38 24.80 5.98 TOTAL (O - E)2 / E 0.510.34 0.391.53 0.924.55 0.161.17 2.651.92 1.220.23 0.011.23 1.680.35 0.280.09 0.801.49 0.013.76 0.930.27 4.14
26.64
Calculated value =26.64; Tabulated value for 16 d.f @ 5% level of significance =26.29 It is inferred from the above table that HO is rejected @ 5% level of significance. Result : H1 is accepted: There is significant relationship between factors influencing in choosing the retail outlet & Age TABLE 4: Chi-Square table for Factors influencing in choosing the retail outlet &Income of the Respondents. H0: There is no significant relationship between factors influencing in choosing the retail outlet & Income
189
International Journal of Management (IJM), ISSN 0976 - 6502(Print), ISSN 0976 6510(Online), Volume 3, Issue 2, May-August (2012)
H1: There is significant relationship between factors influencing in choosing the retail outlet & Income
O 4 5 8 5 13 39 62 36 2 11 22 18 15 36 13 21 11
E 3.03 7.46 4.66 3.73 16.1 4.85 11.9 7.46 5.97 25.7 3.03 7.46 4.66 3.73 16.1 1.38 3.41 2.13 1.70 7.36 0.69 1.70 1.06 0.85 3.68
(O - E)2 0.94 6.05 11.15 1.61 9.61 3.42 8.41 2.13 15.7 106.9 1.06 12.53 7.07 2.99 3.61 0.14 2.52 0.75 18.49 40.44 5.330 .09 3.6 0.02 7.18
(O - E)2 / E 0.280.81 2.390.43 0.590.70 0.700.28 2.624.12 0.341.67 1.510.80 0.220.10 0.730.35 10.875.49 7.720.053 .390.021.9 5 48.13
Calculated value =48.13; Tabulated value for 16 D.F @ 5% level of significance =26.29 It is inferred from the above table that HO is rejected @ 5% level of significance. Result : H1 is accepted: There is significant relationship between factors influencing in choosing the retail outlet & Income of the Respondents.
190
International Journal of Management (IJM), ISSN 0976 - 6502(Print), ISSN 0976 6510(Online), Volume 3, Issue 2, May-August (2012)
CONCLUSION This research reveals that certain factors like availability of prefered brands, parking space and store ambience influences the customers in selecting the durable retail outlet. Analysis of hypotheses shows that there is relationship between demographic variables like age and income in selecting the retail outlet. The marketers should pay moreattention to the above infrences which will help to bring in more new customers and later convert them into loyal customers. REFERENCE 1. Bawa, K., and A. Ghosh. "A Model of Household Grocery Shopping Behavior."Marketing Letters 10 (No. 2, 1999): 149-160. 2. Kim, B.D., and K. Park. "Studying Patterns of Consumer's Grocery Shopping Trip."Journal of Retailing 73 (No. 4, 1997): 501-517. 3. Ackerman, D., and G. Tellis. "Can Culture Affect Prices? A Cross-Cultural Study of Shopping and Retail Prices." Journal of Retailing 77 (2001): 57- 82. 4. Bhatnagar, A., and B.T. Ratchford. "A Model of Retail Format Competition for Non-durable Goods." International Journal of Research in Marketing 21 (2004):3959. 5. Fox, E.J., A.L. Montgomery, and L.M. Lodish. "Consumer Shopping and Spending Across Retail Formats." The Journal of Business 77 (No. 2, 2004): s25s60.
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doc_422352337.docx
Case Study on Effect of Demographic Variables in Selecting Retail Outlet With Reference to Durable Goods in Chennai:- Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery.
Case Study on Effect of Demographic Variables in Selecting Retail Outlet With Reference to Durable Goods in Chennai
ABSTRACT Retail industry is continuously going through changes on account of liberalization, globalization and consumer preferences. While multinational retail chains are looking for new markets, manufacturers are identifying, redefining, or evolving new retail formats. The existing retail houses are also gearing up to face the emerging competition from the organized sector and the changing outlook of the consumers. The main aim of this study is to find the factors influencing a customer to choose a retail store when buying Durable Goods and its effect on demographic variables. By understanding the same retailers can try and improvise on these factors and thereby increase their chances of converting the new customer into a loyal customer. Key words: Retail outlets, shopping, Factors influencing selecting retail outlet. INTRODUCTION Shoppers were classified as "routine" - who have higher opportunity cost and "random" - who face low opportunity cost of time and search more widely across stores within larger stores for the best price by Kim and Park (1997).Ackerman and Tellis (2001) studied cross-cultural differences between Chinese and Americans in terms of shopping behavior. Kim and Jin (2001) studied the profiles of Korean shoppers of multinationals versus Korean discount stores and found that a higher percentage of the shoppers who have full- time jobs tend to patronize the multinational discount stores. However, there are no significant differences between the two groups with respect to age, family size, education level, and income. The studies are generally restricted to comparisons of behavior within the same store format, that is, they are limited to only supermarkets or to only discount stores.
186
International Journal of Management (IJM), ISSN 0976 - 6502(Print), ISSN 0976 6510(Online), Volume 3, Issue 2, May-August (2012)
LITERATURE REVIEW Researchers have identified a number of factors influencing store choice. Morschett et al. (2005) summarise these to include product quality, assortment, 1?stop, price, speed and quality of service and the atmosphere of the in?store experience. They identify which attributes contribute to the store choice decision, but not why these attributes are or are not important. This is an important gap to investigate in order to ascertain the importance of the firm's size and offering in a period of rationalisation, where smaller stores are losing out to larger format ones (Sinha and Banerjee 2004). Meyer and Eagle (1982), Brooks et al. (2001) and Fotheringham (1988) hold that store choice is very much driven by location; hence large?scale retailers often focus on a geographic position strategy. Brooks et al. (2001) puts forward the idea that although location is amongst the most important driver of store choice, there are in fact 'trip chains' that give rise to effects like collocation and overall purpose. Research into store choice needs to consider not just location but relevance to other shopping, to home and the workplace.
METHODOLOGY The research design used in this research is descriptive in nature.150 respondents were selected on convenience sampling method, and asked to give their opinion on selecting retail outlet using a structured questionnaire. The study focuses to identify the influence of customers' age in selecting durable retail outlet. Later the data are complied with statistical analysis to derive the results. RESULTS AND DISCUSSION TABLE 1: Demographic Profile of the respondents
RESPONDENTS FREQUENCY PERCENTAGE Male 85 5743 Female Total 65 150 100
RESPONDENTS FREQUENCY PERCENTAGE 20-25 14 9.3 26-30 31-35 36-40 41 & Above 23 65 35 13 15.343 .323.4 8.7
187
International Journal of Management (IJM), ISSN 0976 - 6502(Print), ISSN 0976 6510(Online), Volume 3, Issue 2, May-August (2012)
Total
150
100
RESPONDENTS FREQUENCY PERCENTAGE Below 50,000 35 23.337 5 0 ,0 0 0 - 6 0 ,0 0 0 6 0 ,0 0 1 - 7 0 ,0 0 0 7 0 ,0 0 1 - 8 0 ,0 0 0 Above 80,000 Total 56 35 16 8 150 .323.31 0.65.34 100
It is inferred from the above table that out of 150 respondents 57% are Male; 43.3% of the respondents are between 31-35 years of age; 37.3% of the respondent's monthly income is 50,000-60,000. TABLE 2 Factor influencing selecting the retail outlet: RESPONDENTS FREQUENCY PERCENTAGE Shopping Environment 13 8.67 Parking Space 21.341 32 Store Ambience 3.3 20 Customer care 10.67 16 Availability of preferred brands 46 69 Total 100 150 Inference: It is inferred from the above table that out of 150 respondents 46% of the respondents selecting retail outlet are mostly based on availability of preferred brands,32% based on parking space & 20% based on store ambience
TABLE 3 Chi-Square table for Factors influencing in choosing the retail outlet & Age. H0: There is no significant relationship between factors influencing in choosing the retail outlet & Age
188
International Journal of Management (IJM), ISSN 0976 - 6502(Print), ISSN 0976 6510(Online), Volume 3, Issue 2, May-August (2012)
H1: There is significant relationship between factors influencing in choosing the retail outlet & Age O 2 4 1 3 4 5 4 3 5 6 3 12 94 37 26 42 21 16 32 1 E (O - E)2 1.21 0.62 2.98 1.04 1.86 0.73 1.49 2.28 6.44 5.95 1.99 9.06 4.90 0.81 3.06 3.6 2.45 6.50 20.2 10.5 6.91 5.63 3.24 13.8 0.11 8.66 8.58 6.93 50.4 29.9 1.06 3.03 2.13 7.46 0.43 4.66 2.99 3.73 24.01 16.1 0.01 1.12 10.43 2.77 1.61 1.73 0.38 1.38 24.80 5.98 TOTAL (O - E)2 / E 0.510.34 0.391.53 0.924.55 0.161.17 2.651.92 1.220.23 0.011.23 1.680.35 0.280.09 0.801.49 0.013.76 0.930.27 4.14
26.64
Calculated value =26.64; Tabulated value for 16 d.f @ 5% level of significance =26.29 It is inferred from the above table that HO is rejected @ 5% level of significance. Result : H1 is accepted: There is significant relationship between factors influencing in choosing the retail outlet & Age TABLE 4: Chi-Square table for Factors influencing in choosing the retail outlet &Income of the Respondents. H0: There is no significant relationship between factors influencing in choosing the retail outlet & Income
189
International Journal of Management (IJM), ISSN 0976 - 6502(Print), ISSN 0976 6510(Online), Volume 3, Issue 2, May-August (2012)
H1: There is significant relationship between factors influencing in choosing the retail outlet & Income
O 4 5 8 5 13 39 62 36 2 11 22 18 15 36 13 21 11
E 3.03 7.46 4.66 3.73 16.1 4.85 11.9 7.46 5.97 25.7 3.03 7.46 4.66 3.73 16.1 1.38 3.41 2.13 1.70 7.36 0.69 1.70 1.06 0.85 3.68
(O - E)2 0.94 6.05 11.15 1.61 9.61 3.42 8.41 2.13 15.7 106.9 1.06 12.53 7.07 2.99 3.61 0.14 2.52 0.75 18.49 40.44 5.330 .09 3.6 0.02 7.18
(O - E)2 / E 0.280.81 2.390.43 0.590.70 0.700.28 2.624.12 0.341.67 1.510.80 0.220.10 0.730.35 10.875.49 7.720.053 .390.021.9 5 48.13
Calculated value =48.13; Tabulated value for 16 D.F @ 5% level of significance =26.29 It is inferred from the above table that HO is rejected @ 5% level of significance. Result : H1 is accepted: There is significant relationship between factors influencing in choosing the retail outlet & Income of the Respondents.
190
International Journal of Management (IJM), ISSN 0976 - 6502(Print), ISSN 0976 6510(Online), Volume 3, Issue 2, May-August (2012)
CONCLUSION This research reveals that certain factors like availability of prefered brands, parking space and store ambience influences the customers in selecting the durable retail outlet. Analysis of hypotheses shows that there is relationship between demographic variables like age and income in selecting the retail outlet. The marketers should pay moreattention to the above infrences which will help to bring in more new customers and later convert them into loyal customers. REFERENCE 1. Bawa, K., and A. Ghosh. "A Model of Household Grocery Shopping Behavior."Marketing Letters 10 (No. 2, 1999): 149-160. 2. Kim, B.D., and K. Park. "Studying Patterns of Consumer's Grocery Shopping Trip."Journal of Retailing 73 (No. 4, 1997): 501-517. 3. Ackerman, D., and G. Tellis. "Can Culture Affect Prices? A Cross-Cultural Study of Shopping and Retail Prices." Journal of Retailing 77 (2001): 57- 82. 4. Bhatnagar, A., and B.T. Ratchford. "A Model of Retail Format Competition for Non-durable Goods." International Journal of Research in Marketing 21 (2004):3959. 5. Fox, E.J., A.L. Montgomery, and L.M. Lodish. "Consumer Shopping and Spending Across Retail Formats." The Journal of Business 77 (No. 2, 2004): s25s60.
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doc_422352337.docx