C O N S U M E R B E H AV I O U R

INTRODUCTION• Big Bazaar was formed in 2001.• The founder of Big Bazaar is Kishore Biyani.• In 2010, Big Bazaar was ranked 6th amongst the top 50 service brands in

India.• It is the largest Hypermarket chain which was first started in Kolkata,

Bangalore & Hyderabad.• There are total 800 Outlets in 90 cities in India.• Revenue generated by Big Bazaar in Financial year 2014 was 500Cr.• Number of Employees : 36,000+• Major Target Customers of Big Bazaar are : Middle and lower Class which

includes service class i.e. 55% of the Indian population.

CONSUMER DECISION MAKING• Problem Recognition :-

1. Buying behavior related to Routine Problem& Planned Problem.2. Products provided are low Involvement goods.

• Information Search :-1. Low information search in Low Involvement product2. Self- Opinion for decision decision making product.3. For FMCG product Internal Information is enough.4. Attract and retain the customer Big Bazaar has come up with value added offer &

discount coupons.• Alternative evaluation :-

1. Organized retail sector having Multiple Brands.2. Providing Vivid choices to retain customers.3. Highly preferred brand displayed at the fore-sight.

• Purchase Decision:-1. Satisfied customer with satisfied need tends to move towards purchase

decision.2. Decision is dependent on quality of Shopping Experience, Store Ambience,

Exchange or Return Policy.• Post-Purchase Behavior:-

1. Depends on satisfaction level received from the goods consumed.2. Higher the satisfaction minimum search of Information & alternative evaluation

of the product.

THEORY OF DIFFUSION• Big Bazaar Online Franchisee.

• FCE takeover of Nigiria Dairy Farm for Grocery Chain.

• Big Bazaar tie-up with mobile wallet company Mobi-Kwik.

• Big-Bazaar GEN-NXT store launched at Infinity Mall, Malad Mumbai

CUSTOMER SATISFACTION• There are several factors, which shows the satisfaction level of the consumers in Big Bazaar.

Following are the factors listed :

• Variety

• Quality

• Price

• Location

• Advertisements

• Middle class appeal

• Attractive sales.

CONTD..

• Big Bazaar should take precaution against following points for the sake of consumer’s satisfaction :

• Store Layout

• Lower quality of goods

• Does not appeal to the elite

• Not acclaimed of very good service.

• The above stated points leads to dis-satisfaction of the customers which is not a positive sign for the store.

RELATIONSHIP MANAGEMENT• CRM @ Big Bazaar

• Database is formed through the issue of future card.

• Customer Profitability Analysis (CPA).• Differentiate customers in terms of their need and value to company.

• Interact with individual customers.

CONT…

• A successful Customer Relationship Management allows customer service, sales and marketing people to have a holistic view of each and everyone of their customers.

• Using CRM, Big Bazaar can take following advantages:

• Provide better customer service

• Discover new customers

• Increase customer revenues

• Simplify marketing and sales processes

• Help sales staff close deals faster.

ONLINE CONSUMER BEHAVIOUR• In India, online retail is the new business trend and almost everything can be purchased online.

• From banking transactions to travel bookings, purchasing life insurance to selling cars, everything is being done online in just a few clicks.

• Smart Phone and 3G/4G services have brought people closer to the world of Internet.

• More and more people use internet for their shopping requirements now, thus, redefining the e-commerce trend.

• Shopping online offers flexibility in time, convenience and the best part is we get doorstep delivery.

• Due to its numerous advantages, the online revolution in India is taking shape at an unprecedented rate.

CUSTOMER DEMOGRAPHICS

• Men Are More Likely To Make Purchases On Mobile Devises. Fifty-seven Percent Of Women Made A Purchase Online In 2015, Compared To 52% Of Men, According To A Study Conducted By See why. But 22% Of Men Made A Purchase On Their Smartphones Last Year, Compared To 18% Of Women.

• Millennials, Those Consumers Aged 18 To 34, Remain The Key Age Demographic For Online Commerce, Spending More Money Online In A Given Year Than Any Other Age Group. They Spend Around $2,000 Annually On E-commerce. This, Despite Having Lower Incomes Than Older Adults.

• Boomers And Seniors Have Adopted Mobile Commerce. One In Four Mobile Shoppers In The U.S. Is Over The Age Of 55. That's About Even With Their Share Of The Overall U.S. Population.

• Online Shoppers Tend To Live In Households With Higher-than-typical Incomes. An Experian Survey Found That 55% Of E-commerce Shoppers In The U.S. Live In Households With Incomes Above $75,000 (40% Were In Households Earning $100,000 And Above). The Median Household Income In The U.S. Is Around $50,000, According To The Census.

• Future Group has launched Big Bazaar Direct, a direct selling platform for which it will use a tablet based e-commerce backend.

HOW IT WORKS• You will be provided with a 10”tablet or 21”slate with all the available products listed

in it. Your customers can browse and select the products on the tablet. After your customer selects the product, you can place the order with us directly.

• Instantly a confirmation message will be sent to the customer’s mobile number after which you can take the payment and your work will be done. Post this, the delivery and any queries will be handled by the After Sales Team at Big Bazaar Direct Franchisee.

• As Big Bazaar Direct Franchisee, you don’t require to have your own shop or stock any products. All you need to do is take orders from your customer using our tablet and we will we will deliver the products to your customer’s doorstep.

• For this, our best in class warehouses located across India will ensure that the orders are delivered directly at your customer doorstep.

CONSUMERISM

• Organised retailing is a recent development. It is the outcome of socio economic factors. India is standing on the threshold of retail revolution.

• Today the rural market in India is facing stiff competition in retail sector also. The rural market in India is fast emerging as the rural consumers are becoming quality conscious. Thus due to huge potential in rural retailing organised retailers are developing new products and strategies to satisfy and serve rural customers. In India, Retail industry is proving the country’s largest source of employment after agriculture, which has the deepest penetration into rural India.

RISE OF CONSUMERISM• With the emergence of consumerism, the retailer faces a more knowledgeable and

demanding consumer. As the business exist to satisfy consumer needs, the growing consumer expectation has forced the retail organizations to change their format of retail trade. Consumer demand, convenience, comfort, time, location etc. are the important factors for the growth of organised retailing in India.

• The retail industry is divided into organised and un-organised sectors. Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc.

• These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Un-organised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors.

BY-Aarya Singh 02 Group leader: - Subin Suresh 53

Abhishek Sinha 64Kirloskar INSTITUTE OF ADVANCED MANAGEMENT STUDIES