to Study the Consumer Behaviour in Max Lifestle Retail Lucknow

ACKNOWLEDGEMENTACKNOWLEDGEMENT

Concentration, dedication and application are necessary but not sufficient to achieve any

goal. These must be awarded by guidance, assistance and co-operation of some person to

make it enable.

Many people have given their valuable time and ideas to enable me to complete the

research and the report. I am deeply indebted to all for their ideas and assistance, while

bearing the entire responsibility for weakness in the report.

I am highly obliged to MR. NIKHIL RANJAN (STORE MANAGER) and MRS. RITA

CHATTERJI (ASSISTANT STORE MANAGER), MAX LIFESTYLE, LUCKNOW

for providing me an opportunity to undergo this project report.

I am also indebted to MR. RAZAUR RAHMAN & ALL FACULTY MEMBERS of

SRMCEM, LKO who have been a constant source of inspiration and provided guidance

to me at every point of time.

My gratitude to all those, who RESPONDED TO MY QUESTIONNAIRE in a well

defined manner and helped me acquiring knowledge.

Lastly, I thanks all those, who have directly or indirectly, helped me in this project..

ABHISHEK PANDEY

PGDM- I YEAR

ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOWABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

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DECLARATIONDECLARATION

I, ABHISHEK PANDEY, student of POST GRADUATE DIPLOMA IN MANAGEMENT

hereby declare that the project report entitled “A DETAIL STUDY OF CONSUMER

BEHAVIOUR AND BUYING BEHAVIOVR OF CUSTOMERS IN MAX STORE OF

LUCKNOW CITY” has been compiled by me on the basis of my project report and has not been

submitted any where in any manner.

It is a report, which is based on various interviews, surveys that is conducted during my

project report period in LUCKNOW as a student of P.G.D.M. from “SHRI

RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW.”

ABHISHEK PANDEY

PGDM- I YEAR


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EXECUTIVE SUMMARYEXECUTIVE SUMMARY

This study is a modest effect at understanding the consumer behavior especially in

retail store in Lucknow. Analysis to Lucknow people perception of retail store (survey only

retail channel in Zee mall). The survey was constituted in visiting of Zee Mall Customers

were interviewed by means of carefully prepared questionnaire to study and understand

customer behaviour in depth. I study also the consumer decision making in retail store in

Indian city and what effect consumer decision-making in retail store.


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PREFACEPREFACE

The sea of change can pull customers in many directions. It is our responsibility to light the way

and take care of them… before the competition does.

RETAILING Means Re-tailing to the customers so that they comeback

Retailing consists of all activities involved in selling goods and services to consumers for their

personal, family, or household use. It covers sales of goods ranging from automobiles to apparel

and food products, and services ranging from hair cutting to air travel and computer education.

Sales of goods to intermediaries who resell to retailers or sales to manufacturers are not

considered a retail activity.

The retail sector in India is highly fragmented with organized retail contributing to only 2% of

total retail sales. The retail sector in developed countries was also highly fragmented at the

beginning of the last century but emergence of large chains like Wall Mart, Sears, and

McDonald’s led to rapid growth of organized retail and growing consolidation of the retail

industry in the developed countries.

Organized retail is growing rapidly and we see the emergence of large organized retail chains like

Shopper’s Stop, Lifestyle, and Westside. We also find retail malls mushrooming all over the

country. The opportunities in retail industry in India will increase since Indian retailing is on the

threshold of a major change.

The study of retailing is very important to MBA students interested in employment opportunities

with large retail chains.


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The remarkable world of Retail


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Retail, according to Concise Oxford English Dictionary, is "the sale of

goods to the public for use or consumption rather than for resale."

World over, the retail segment has performed exceptionally since its

inception in the 20th century. Sample these facts:

Retail is currently the biggest industry in the world with sales of

$7.2 trillion

Every 10th billionaire in the world is a retailer.

25 of the top 50 Fortune 500 companies are in retail.

The Indian retail story couldn't have been more different. India has approx

12 million retail stores, more than rest of the world put together. But the

per capita square feet area under retail is just 2 sq.ft or 0.2 sq. meters with

fragmented keerana stores being the predominant players.

Retailing in India has remained in the unorganized sector and largely

untouched by corporate.

The first decade of modern retail in India has been characterized by a shift

from traditional channels to new formats including department stores,

hypermarkets, supermarkets and specialty stores across a range of

categories.


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Retailing

including all

activities

involved in

selling goods or

services directly

to the final

consumers for

personal, non

business use

Any organisation

selling to final

consumers-

whether it is a

manufacture,

whole seller, or

retailer – is

doing retailing.

Consumers today

can shop for

goods & services

in a wide variety

of retail Org.

The best- known

type of retail is

the Department

store.

Modern retail formats have mushroomed in metros and mini-metros, in the last few years modern

retail has also established its presence in the second rung cities. Thus, exposing the residents of

these cities to shopping options, they have never experienced before. It has been forecasted that

the share of modern retail will increase from 2 per cent currently, to about 15-20 per cent over the

next decade.

To begin with, retailers today will have to support the large retail infrastructure in terms of

Malls and Superstores that are being created.

The challenge for leading retailers shall therefore shift from diverting demand to creating

demand.

With all the modern stores offering convenience in terms of an assortment of products, ambience,

service and innovative products, the paradigm shall shift from competing with the kirana stores to

an in-house demand creation. Relevant experiences from consumer goods companies, which have

successfully crafted an explosion in demand in their sectors, through innovation, consumer driven

strategies, will be head runner.

Times are changing. With the GDP at an all time high and income levels shooting through the

roof, the average Indian consumer has never had it so good. The propensity to consume has

reached peaks that had never been scaled before. Credit cards are flashed with disdain and

shopping baskets are getting bigger all the time. Here are some factors that indicate the potential

of retail in India:


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At 271 million, one of the largest consuming base in the world, forming 27% of the total

population.

A high spending community below 45 years comprises 81 percent of the population.

A young population with 54% population below 25 years

Increased literacy from 44% in 1965 to 70% in 2003

Increase in working women from 1.3 million in 1961 to 4.8 million in 1998.

Increase in media penetration to 38-million cable household and 80-million TV household

in 2001

The first decade of modern retail in India has been characterized by a shift from traditional kirana

shops to new formats including department stores, hypermarkets, supermarkets and specialty

stores across a range of categories. Modern retail formats have mushroomed in metros and mini-

metros. In the last few years, modern retail has also established its presence in the second-rung

cities, exposing residents to shopping options like never before. However, even as modern

retailers garner share from traditional channels, there is a larger role they would be required to

play in boosting consumption levels.

Figures suggest that the total turnover of the sector is around Rs 10 lakh crores, of which 4 per

cent is contributed by the organised sector.

During the last decade, India's middle- and high-income segment notched up an impressive 105

per cent growth. This segment has been triggering the demand for consumer goods. Increased

awareness, free access to information and choice in competing products and services are making


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customers redefine the retail business. They are on the lookout for convenience, speed, efficiency

and a wide range of products. Retailers need to explore different channels of retailing to cater to

customers' needs.

The days of brick-and-mortar's limited potential are fading and retailers need to tap the immense

opportunities that other channels offer.

Driven by increasingly intense competition in an increasingly global marketplace, retailers must

seek new ways of capturing the hearts and minds of consumers. The traditional levers of price,

selection and location — although still important — are no longer sufficient as bases for

competitive differentiation. Retailers should be focused on improving the end-to-end shopping

experience, boosting sales and winning customer loyalty by connecting to the shopper in every

possible way.

Multichannel retailing is all about giving the customer a choice of which shopping channel he or

she wishes to purchase products through. The most popular shopping channels include the stores,

Internet and catalogues and telemarkets (including mobile shopping).

Retailers must provide a seamless multichannel experience for their customers. For this, they

become the most valuable consumers within a retailer's customer base.


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Multichannel retailing needs to be adopted:

Grow market share

Increase customer base

Offer convenience

Achieve cost reductions through economies of scale, supply chain efficiencies, and

logistics

Improve customer analytics

Open new revenue streams by cross-sell & sell ups

Reduce cycle time between order and delivery

Lower fulfillment cost & Improve demand planning

However, going multichannel, the retailer should not ignore the critical part: the customer.

Customers have become more sophisticated and expect a retailer to recognize them.


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Evolution of Indian RetailEvolution of Indian Retail

Traditional Rural Retail Fairs

Traditional Family Run Convenience Stores

Traditional Rural Retail FairsTraditional Rural Retail Fairs

Traditional rural retail fairs are a very big at traction to foreign tourists . We

have the Pushkar fair in Rajasthan which brings in a lot of revenue both from

domestic buyers and buyers from abroad. In the Pushkar fair l ive stock l ike

camels, horses, cows, goats, and sheep are sold as well as bought. A range of

exotic i tems are also available. The traditional items here are handmade

jewelry and other colorful memorabil ia of Rajasthan.

Traditional rural retail fairs in India deal in a good number of handcrafts

items which are mentioned below:

Hand painted wooden chest drawers

Wooden wall brackets


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http://business.mapsofindia.com/india-retail-industry/evolution/traditional-family-run-convenience-stores.html

http://business.mapsofindia.com/india-retail-industry/evolution/traditional-rural-retail-fairs.html

Embossed wooden table

Hand painted chairs in chowki

Wooden corner stand

Wooden Hand painted table

Embossed wooden chairs

Brown wooden stool

Camel bone Jewelry

Metal jewelry

Snake charmer puppets

Handmade candles

The Suraj Kund mela is also a huge galore of Indian traditional items . This

fair is held at Haryana which is 8 kilometers from South Delhi . The fair has

been held for the last 20 years. The fair deals in i tems categorized as

Indian arts

Handicrafts

Heritage


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Culture and tradit ion

Traditional rural retail fairs have a typical rural set up l ike:

Huts of mud

Thatched platforms

lamps of wood

String cots

Plainness ground

The small thatched stores are a vibrant display of handcraft i tems. The focus

every year is on a part icular State for instance, in 2006 i t was Maharashtra. The

other group of i tems representing the Indian Subcontinent available there are:

Classical

Tribal art

Folk art

As such Traditional Rural Retail fairs involve credit worthy art isans and

weavers of over 350 in number and they are selected from across the country.


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Along with the county's r ich cultural heritage being showcased, the fair is

open to foreign traditional goods as well . The more rejuvenating side of these

fairs would be l isted as under:

Indian Sweets Snacks

Indian folk music

Classical dance

Bengal t iger show

Elephant r ides

Tiger show and rides

Giraffe tr icks

Balloon and Clay i tems

Painting

Games

Therefore, traditional rural retail fairs are a never ending occupation and the

key to i t l ies in the originali ty and attractiveness of the i tems.

Traditional Family Run Convenience StoresTraditional Family Run Convenience Stores


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Traditional family run convenience stores are too well established in India

than to be wiped out and besides there is uniqueness in the tradit ional i tems that

represent the sub-continent. The retail stores in India are essential ly

dominated by the unorganized sector or tradit ional stores. Infact the tradit ional

stores have taken up 98 percent of the Indian retai l market . Now stores run by

families are primarily food based and the set up is as Kirana or the 'corner

grocer ' s tores. Basically they provide high service with low prices. If the stores

are not food based then the type of retai l i tems available are local in nature.

The tradit ional family run convenience stores can take pride in the fact that the

Kirana is the most common outlet forms for the consumers. The tough

competi t ion for convenience stores are coming from organized retai l stores

dealing in food i tems, l ike:

Apna Bazaar

Canteen stores

Food World


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Subhiksha

Food Bazaar

Convenience Stores are open for long hours and is one of the formats of

the Indian retai l stores that cater to basic needs of the consumer. A good

example of such would be Convenio. These stores are found in both

residential as well as commercial markets. The food products of

tradit ional family run convenience stores are comprised of branded as well

as non-branded i tems. The benefi ts of family run convenience stores is

that they give importance to:

Personal touch

Facil i t ies of credit

Quick home delivery

Non-food based stock comprises of multiple and variet ies of local brands.

The future of such stores as they face competi t ion from organized sector,

would depend on the following part iculars:

Place and capacity


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Diligent area coverage

Disciplined work schedule

Managing turnover

Revenue from assets

Customer service and satisfaction

The traditional family run convenience stores serves the purpose of the

housewives who definitely wants to avoid traveling long distances to purchase

daily needs. The convenience factor in terms of i tems, among people in general

can be highlighted as below:

Groceries

Fruits

Drug Store

Necessary stat ionery


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As such tradit ional family run convenience stores are here to stay and cannot

be oversized by the organized retail sector besides, i t represents the variety of

India

Indian retail industry

India retai l industry is the largest industry in India, with an employment of

around 8% and contributing to over 10% of the country's GDP. Retail industry

in India is expected to rise 25% yearly being driven by strong income growth,

changing l ifestyles, and favorable demographic patterns.

I t is expected that by 2016 modern retail industry in India wil l be worth US$

175- 200 bil l ion. India retai l industry is one of the fastest growing industries

with revenue expected in 2007 to amount US$ 320 bil l ion and is increasing at a

rate of 5% yearly. A further increase of 7-8% is expected in the industry of


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retai l in India by growth in consumerism in urban areas, r ising incomes, and a

steep rise in rural consumption. I t has further been predicted that the retai l ing

industry in India will amount to US$ 21.5 bil l ion by 2010 from the current size

of US$ 7.5 bil l ion.

Shopping in India have witnessed a revolution with the change in the consumer

buying behavior and the whole format of shopping also al tering. Industry of

retai l in India which have become modern can be seen from the fact that there

are multi- stored malls, huge shopping centers, and sprawling complexes which

offer food, shopping, and entertainment al l under the same roof.

India retai l industry is expanding i tself most aggressively, as a result a great

demand for real estate is being created. Indian retailers preferred means of

expansion is to expand to other regions and to increase the number of their

outlets in a ci ty. I t is expected that by 2010, India may have 600 new shopping

centers.

In the Indian retai l ing industry, food is the most dominating sector and is


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growing at a rate of 9% annually. The branded food industry is trying to enter

the India retai l industry and convert Indian consumers to branded food. Since at

present 60% of the Indian grocery basket consists of non- branded i tems.

India retai l industry is progressing well and for this to continue retai lers as well

as the Indian government will have to make a combined effort .

Indian organized retail marketIndian organized retail market

Indian organized retai l market is growing at a fast pace due to the boom in the

India retail industry . In 2005, the retai l industry in India amounted to Rs

10,000 bil l ion accounting for about 10% to the country's GDP . The organized

retai l market in India out of this total market accounted for Rs 350 bil l ion

which is about 3.5% of the total revenues.

Retail market in the Indian organized sector is expected to cross Rs 1000 bil l ion

by 2010. Tradit ionally the retai l industry in India was largely unorganized,


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comprising of drug stores, medium, and small grocery stores. Most of the

organized retai l ing in India have started recently and is concentrating mainly in

metropoli tan ci t ies.

The growth in the Indian organized retai l market is mainly due to the change in

the consumers behavior. This change has come in the consumer due to increased

income, changing l ifestyles, and patterns of demography which are favorable.

Now the consumer wants to shop at a place where he can get food,

entertainment, and shopping all under one roof. This has given Indian organized

retai l market a major boost .

Retail market in the organized sector in India is growing can be seen from the

fact that 1500 supermarkets, 325 departmental stores, and 300 new malls are

being buil t . Many Indian companies are entering the Indian retail market

which is giving Indian organized retai l market a boost . One such company is the

Reliance Industries Limited. I t plans to invest US$ 6 bil l ion in the Indian retai l

market by opening 1000 hypermarkets and 1500 supermarkets.


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Pantaloons is another Indian company which plans to increase i ts retai l space to

30 mill ion square feet with an investment of US$ 1 bil l ion. Bharti Telecoms an

Indian company is in talks with Tesco a global giant for a £ 750 mill ion joint

venture. A number of global retai l giants such as Walmart , Carrefour, and Metro

AG are also planning to set up shop in India. Indian organized retai l market wil l

definitely grow as a result of al l this investments.

Indian organized retai l market is increasing and for this growth to continue the

Indian retai lers as well as government must make a combined effort .

The Global Retail Industry : An OverviewThe Global Retail Industry : An Overview

Retail has played a major role world over in increasing productivity across a wide range of

consumer goods and services .The impact can be best seen in countries like U.S.A., U.K., Mexico,

Thailand and more recently China. Economies of countries like Singapore, Malaysia, Hong Kong,

Sri Lanka and Dubai are also heavily assisted by the retail sector.


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Retail is the second-largest industry in the United States both in number of establishments and

number of employees. It is also one of the largest world wide. The retail industry employs more

than 22 million Americans and generates more than $3 trillion in retail sale annually.

Retailing is a U.S. $7 trillion sector. Wal-Mart is the world’s largest retailer. Already the world’s

largest employer with over l million associates, Wal-Mart displaced oil giant Exxon Mobil as the

world’s largest company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has

become the most successful retail brand in the world due its ability to leverage size, market clout,

and efficiency to create market dominance. Wal-Mart heads Fortune magazine list of top 500

companies in the world. Forbes Annual List of Billionaires has the largest number (45/497) from

the retail business.


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GLOBAL RETAILGLOBAL RETAIL

19991999 20022002 20052005

Total Retail (US$ Billion)Total Retail (US$ Billion) 150150 180180 225225

Organized Retail (US$ Billion)Organized Retail (US$ Billion) 1.11.1 3.33.3 77

% Share of Organized retail% Share of Organized retail 0.70.7 1.81.8 3.23.2

Rank Retailer Home Country

1. Wal-Mart Stores, Inc. U.S.A.

2. Carrefour Group France

3. The Kroger Co. U.S.A.

4. The Home Depot. Inc. U.S.A.

5. Metro Germany

(Source: STORES / Deloitte Touch Tomahastsu)


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The factors responsible for the development of the retail sector in India can be broadly

summarized as follows:

Rising incomes and improvements in infrastructure are enlarging consumer markets and

accelerating the convergence of consumer tastes. Looking at income classification, the

National Council of Applied Economic Research (NCAER) classified approximately

500Io of the Indian population as low income in 1994-95; this is expected to decline to

17 by 2006-07.

Liberalization of the Indian economy which has led to the opening up of the market for

consumer goods has helped the MNC brands like Kellogs, Unilever, Nestle, etc. to

make significant inroads into the vast consumer market by offering a wide range of

choices to the Indian consumers.

Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.

The internet revolution is making the Indian consumer more accessible to the growing

influences of domestic and foreign retail chains. Reach of satellite LV. channels is

helping in creating awareness about global products for local markets. About 47% of

India’s population is under the age of 20; and this will increase to 55°h by 2015. This

young population, which is technology-savvy, watch more than 50 TV satellite

channels, and display the highest propensity to spend, will immensely contribute to the

growth of the retail sector in the country.

As India continues to get strongly integrated with the world economy riding the waves of

globalization, the retail sector is bound to take big leaps in the years to come. The Indian retail


25

sector is estimated to have a market size of about $ 180 billion; but the organised sector represents

only 2% share of this market. Most of the organised retailing in the country has just started

recently, and has been concentrated mainly in the metro cities. India is the last large Asian

economy to liberalize its retail sector. In Thailand, more than 40% of all consumer goods are sold

through the super markets and departmental stores. A similar phenomenon has swept through all

other Asian countries. Organized retailing in India has a huge scope because of the vast market

and the growing consciousness of the consumer about product quality and services. A study

conducted by Fitch, expects the organized retail industry to continue to grow rapidly, especially

through increased levels of penetration in larger towns and metros and also as it begins to spread

to smaller cities and B class towns. Fuelling this growth is the growth in development of the

retail-specific properties and malls. According to the estimates available with Fitch, close to 2Smn

sq. ft. of retail space is being developed and will be available for occupation over the next 36-48

months. Fitch expects organized retail to capture l5%- 20% market share by 2010. A McKinsey

report on India says organised retailing would increase the efficiency and productivity of entire

gamut of economic activities, and would help in achieving higher GDP growth. At 6%, the share

of employment of retail in India is low, even when compared to Brazil (l4%), and Poland (12%).


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Key Strategic Factors in RetailingKey Strategic Factors in Retailing

The key to success is identifying a superior value-promise and who is in a better position to do it

than retailers? Retailers are the closest to the point of purchase and have access to a wealth of

information on consumer shopping behaviour. Retailers have some unique advantages for

managing brands such as continuous and actionable dialogue with consumers, control over brand

presentation at point-of-sale, control over shopping environment, display location/adjacencies,

and signage. And they have used this advantage with tremendous success.

The 3 stages of evolution of the trade channel are shown The 3 stages of evolution of the trade channel are shown

in the exhibit below : in the exhibit below :

Extended Limited Direct

Manufacture

Depo/CNF

Distributor

Retailer

Shopper

Manufacture

Depo/CNF

Retailer

Shopper

Manufacture / Retailer


Shopper

27

As seen, the role of the intermediary is being diminished gradually, which has obvious implication

of backlash of the trade channel upwards towards the suppliers. This is more severe in countries

such as India, where the channel economics in favour of the middlemen is still strong enough

given the fragmentation of the retail sector. Therefore when FoodWorld, the largest grocer in

India has a “direct supply” contract with over 20% of its key suppliers, it gives rise to conflict of

interest with the distribution infrastructure that suppliers have painstakingly built over the years.

Thus companies like HLL have evolved a distinct distribution channel altogether (called “Modern

Trade”) to service the needs of such large grocers. Even the mom and pop stores (known as kirana

shops) are affected due to this “unfair” back-end advantage extended by the suppiier to its leading

accounts (the emerging supermarket chains).

The strategies adopted by the retailer to compete with branded goods are illustrated by the

following diagram. Branding the store and following a private label strategy is the key strategy

which helps the retailer to compete with branded products.


28

FORMAL RETAILING SECTORFORMAL RETAILING SECTOR

1. Typically large retailers

2. Greater enforcement of taxation mechanisms

3. High level of labor usage monitoring


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CATEGORIES OF INDIAN RETAILCATEGORIES OF INDIAN RETAIL

1. Corporate Houses

Tatas: Tata Trent

RPG group: Food World, Health and Glow, etc

ITC: Wills Life Style

Rahejas(ShoppersStop), Hiranandani(Haiko), DLF(DT cinemas) etc.

2. Dedicated brand outlets

Nike, Reebok, Zodiac etc

3. Multi-brand outlets

Vijay Sales, Viveks etc

4. Manufacturers/ Exporters

Pantaloons, Bata, Weekender

Classifying Indian retailClassifying Indian retail

(A)Modern Format retailers

1) Supermarkets (Foodworld)


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2) Hypermarkets (Big Bazaar)

3) Department Stores (S Stop)

4) Specialty Chains (Ikea)

5) Company Owned Company Operated

(B)Traditional Format Retailers

1) Kiranas: Traditional Mom and Pop Stores


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2) Kiosks

3) Street Markets

4) Exclusive /Multiple Brand Outlets

(C)Large Indian retailers

I. Hypermarket

1) Big Bazaar

2) Giants

3) Shoprite

4) Star

II Department store


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1) Lifestyle

2) Pantaloons

3) Piramyds

4) Shoppers Stop

5) Trent

III Entertainment

1) Fame Adlabs

2) Fun Republic

3) Inox

4) PVR


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The Indian retail sector can be broadly classified intoThe Indian retail sector can be broadly classified into

a) FOOD RETAILERS

There are large number and variety of retailers in the food-retailing sector Traditional types of

retailers, who operate small single-outlet businesses mainly using family labour, dominate this

sector In comparison, super markets account for a small proportion of food sales in India However

the growth rate of super market sales has being significant in recent years because greater

numbers of higher income Indians prefer to shop at super markets due to higher standards of

hygiene and attractive ambience.

b) HEALTH & BEAUTY PRODUCTS

With growth in income levels, Indians have started spending more on health and beauty

products .Here also small, single-outlet retailers dominate the market .However in recent years, a

few retail chains specializing in these products have come into the market. Although these retail

chains account for only a small share of the total market their business is expected to grow

significantly in the future due to the growing quality consciousness of buyers for these products

C) CLOTHING & FOOTWEAR


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Numerous clothing and footwear shops in shopping centers and markets operate all over India

Traditional outlets stock a limited range of cheap and popular items; in contrast, modern clothing

and footwear stores have modern products and attractive displays to lure customers. However,

with rapid urbanization, and changing patterns of consumer tastes and preferences, it is unlikely

that the traditional outlets will survive the test of time.

D) HOME FURNITURE & HOUSEHOLD GOODS

Small retailers again dominate this sector. Despite the large size of this market, very few large and

modern retailers have established specialized stores for these products. However there is

considerable potential for the entry or expansion of specialized retail chains in the country.

E) DURABLE GOODS

The Indian durable goods sector has seen the entry of a large number of foreign companies during

the post liberalization period. A greater variety of consumer electronic items and household

appliances became available to the Indian customer. Intense competition among companies to sell

their brands provided a strong impetus to the growth for retailers doing business in this sector.

F) LEISURE & PERSONAL GOODS

Increasing household incomes due to better economic opportunities have encouraged consumer

expenditure on leisure and personal goods in the country. There are specialized retailers for each

category of products (books, music products, etc.) in this sector. Another prominent feature of this

sector is popularity of franchising agreements between established manufacturers and retailers.


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Benefit to customer through retailer sector

There has been a significant change in retail trading over the years, from small

kiranawalas in the vicinity to big super markets; a transition is happening from the

traditional retail sector to organized retailing. The unorganized sector still holds a dominant

position in this industry. The organized segment holds just about 1.2% of the current US$

245 billion retail market, which is expected to reach about US $ 385 billion by the middle of

this decade.

With consumers looking at convenience with multiplicity of choice under one roof and

expectations evolving over time, consumer demand is truly the driving force for organized

retailing in the country. Food and beverages form the main chunk of the retail market. They

are followed by apparel and footwear. The Indian textile industry, the backbone of the

apparel segment, has a large share of the Indian economy, accounting for over 20% of

industrial production as well as providing direct and indirect employment to around 65

million people.

Despite the retail store density in India with regard to population being the largest, it is


36

estimated that over 90% of the stores are less than 500 sq. ft in size. Industry estimates put

the number of retail outlets at 12 million. This is clearly indicative of small-shop ownership

crowding the unorganized segment of retailing. While this fragmented market structure does

pose significant challenges for organized retailing, potential does exist if modern

information and supply chain management systems are to support the development of

convenience shops that match customer expectations.

Today trend is the development of integrated retail cum Entertainment centers or

shopping malls. An increasing number of retailers are focusing on malls now as opposed to

stand-alone developments. While the number of shopping malls has seen a massive surge in

the recent past in the metros and their suburbs, the latest trend in this sector is the increasing

focus on providing leisure activities such as multiplexes, facilities for kids' entertainment,

eateries etc. within the mall premises. Customer less the time consumes and more

entertainment with his family in malls because they within shopping mall number of retail

shop and variety of products and selected the product they want. Good environment in mall.

Less crowed and These are enclosed, air-conditioned, multi-level malls of at least

100,00 sq ft. Critical to these malls is the concept of the anchor, the key outlet or store

around which other outlets cluster. The most popular Indian anchors include Shoppers' Stop,

Globus, Pantaloon, Lifestyle and hypermarkets like Big Bazaar and Giant. Cinemas also

often anchor malls. Driven by the lucrative tax breaks, the old single screen theatres are


37

being divided into three-five smaller screens, as was done in the US, years ago. Example for

wave and PVR.

Landmark GroupLandmark Group

The Landmark Group, founded in 1973 with a single store in Bahrain has grown

into one of the largest retai l conglomerates in the Middle East and is expanding

rapidly in India. I t currently operates over 750 stores across the region with a

retai l presence in China as well . In addit ion to i ts retai l sector, the Group has

also diversified into leisure, food, hotels and electronics and has created a

comprehensive infrastructure including i ts own logist ics and distr ibution

division, to support i ts retai l operations and other businesses.

Key FactsKey Facts

35 Years of retail experience.

Turnover in excess of US$2.5bn.

Total retail space over 10 million sq ft.

Retail Presence across 12 countries: Bahrain, China, India, Jordan, Kingdom of Saudi Arabia, Kuwait, Oman, Qatar, Spain, UAE, Pakistan & Egypt.

Operates over 825 stores.

Employs 24,000 personnel.


38

Core Values of Landmark GroupCore Values of Landmark Group

1. Passion for excellence – We are committed to sett ing industry benchmarks –

be i t our product or practices. Our doctrine is to str ive and maintain the lead in

whatever we do, with str ict adherence to quali ty and delivering value for

money.

2. Integrity in everything we do - Our business is driven by trust , strong ethics

and mutual respect .

3. Empowering people to strive and deliver – Our core strength is our

employees. We believe in giving our personnel the opportunity and

responsibil i ty that are integral to their professional development and our

Group’s success.

4. Adapting to changing market and customer needs – We keep ourselves

abreast with industry trends and dynamic consumer preferences. Our offerings

keep evolving to address changing and discerning consumer needs.


39

Look Good Feel GoodLook Good Feel Good

Max a value retai l store for the family was launched in May 2004 in the

UAE.

With stores that typically measure between 25,000 to 30,000 sq. f t , Max

retai ls i ts own label clothing for men, women and children as well as

footwear and home ware.

A pioneer in the Middle East of the global trend of delivering quali ty and

value at very at tractive prices, Max is being increasingly recognized as a

key player in the value retai l format.


40

With 75 stores across UAE, Saudi Arabia, Jordan, Kuwait , Bahrain, Qatar,

Oman & India, Max plans to expand i ts network in more potential markets

within the Middle East , Turkey and India to build a significant presence

for the brand by targeting to have 100 stores by 2009.

A good shopping experience and great value is an assurance that translates

into making customers “Look good. Feel good” with Max.

Key Facts Key Facts

Established in 2004.

75 stores spread across 8 countries.

The Largest Value Fashion Chain in the Middle East

Products designed and developed exclusively for Max, by a large team ofin-house designers and buyers.


41

KIDSWEAR DEPARTMENT

INFANTS SECTION: -

BOYS (SIZES) PREPACK GIRLS (SIZES) PREPACK

6-12 MONTHS 3 6-12 MONTHS 3



TOTAL 9 9

BOYS SECTION: -

SUB SECTION 1-8 YEARS PREPACK 8-14 YEARS PREPACK SIZES SIZES

2-3 YEARS 3 8-9 YEARS 3




TOTAL 12 12

GIRLS SECTION: -

SUB SECTION 1-8 YEARS PREPACK 8-14 YEARS PREPACK SIZES SIZES


3-4 YEARS 3 9-10 YEARS 3ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOWABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

42



TOTAL 12 12

INFANTS GIRLS

TUNICV-NECKR- NECKCOLLERFRONT OPEN

SKIRTCAPRISHIRT

2-8 BOYS

T-SHIRTDENIM JEANSTROUSERS

CARGO PAINTS

¾ CAPRI COTTON WOVEN KNITTED DENIM

2-8 GIRLS

TUNICSKIRTST-SHIRT

HALTER NECKPOTSEGDEHALF SLEAVESCUT SLEAVESSLEAVELESSHOODED SKIRT

SPORTS CAPRI


43

LEGINGS

¾ LEGINGSFULL LEGINGS

LONG TOPSMINI SKIRTSCALF LENGTH SKIRTDENIM

JEANSCAPRI

STYLES: - KNIT TOP, KNIT BOTTOM, WOVEN TOP, WOVEN BOTTOM, SPEGDEE, HALTER NECK TOP, DRESS, TUNIC, DENIM, CAPRI, DONGRIE, 3 PIECE PACK (SPORTS, SLEAVELESS, HALF SLEAVES), 2 PIECE PACK (NIGT WEAR, SKIRTS).

ETHNIC

FUSION

KURTIROUND NECKV-NECKHALTER NECKMATKA NECKCUT NECKSQUARE NECKCUT SLEAVESSTEPS KURTI

SKIRTSTRAIGHT SKIRTSCRUSH SKIRTSCRUSH ANKLE SKIRTS

FABRICS: - ACOBA, COTTON, GORGET, SHIFFON, LINEN, VISCOS.

SIZES PREPACK

XS 1 S 2 M 2 L 2


44

TRADITIONAL

KURTISHORT LENGTH KURTIHE KURTALONG KURTA

DUPATTACOTTONSHIFFON

SALWARPATIALANORMALCHOORIDAR

SIZES PREPACKS 2M 3L 3XL 2XXL 1

ETHNIC WEAR BASICS: -

KURTASALWARCHOORIDARPATIALADUPATTAPANTSBASICS SLIPS

HOMES

TABLE MATTABLE RUNNERTABLE COVERDUBLE BED SHEETSINGLE BED SHEETDOUBLE BED COVERSINGLE BED COVERNAPPKINTOWEL


45

BATH MATSCUSHION COVERS

WESTERN WEAR

COREKNIT TOPWOVEN TOPKNIT BOTTOMWOVEN BOTTOMSKIRTS

YOUNGKNIT TOPWOVEN TOPKNIT BOTTOMWOVEN BOTTOMDENIM BOTTOMJACKETSHORTSSKIRTS

SPORTYJACKETKNIT TOPWOVEN TOPKNIT BOTTOMWOVEN BOTTOM

DENIMDENIM FULL LENGTHCAPRI

NIGHT WEARGOWNSSLEEPWEAR


46

MENSWEAR

CASUAL DENIMBOOT CUT REGULAR FITSLIMFIT

CASUAL NON- DENIMKNITTED TOP- FULL SLEAVESKNITTED TOP- HALF SLEAVESKNITTED TOP- SLEAVE LESSWOVEN TOP- FULL SLEAVESWOVEN TOP- HALF SLEAVES WOVEN TOP- SLEAVE LESSWOVEN TOP- H/S BASICWOVEN TOP- F/S BASIC

FORMALWOVEN BOTTOM- FLAT FRONTWOVEN BOTTOM- PLEATEDWOVEN TOP- FULL SLEAVESWOVEN TOP- HALF SLEAVES

INNER WEARTRUNK VALUE PACKWEST VALUE PACKY FRONT VALUE PACK

SEMI FORMALWOVEN BOTTOM- FLAT FRONTWOVEN BOTTOM- PLEATEDWOVEN TOP- FULL SLEAVESWOVEN TOP- HALF SLEAVES

SPORTS WEARKNITTED TOP- FULL SLEAVESKNITTED TOP- HALF SLEAVESKNITTED TOP- SLEAVELESSJACKETKNITTED TRACK BOTTOMWOVEN TRACK BOTTOMWOVEN TRACK SHORTSKNIT TRACK SHORTS


47

SIZES- SHIRTS T-SHIRTS DENIM REGULAR FIT SLIM FIT 39 to 44 S to XL 28 to 36 28 to 36 28 to 38

FOOTWEAR

MENS FOOTWEAR

CASUAL SHOES FORMAL SHOES CASUAL LACE UPS FORMAL LACE UPS CASUAL SLIP UPS CASUAL SLIP ONES CASUAL SANDALS FORMAL SANDALS SPORT SHOES

LADIES FOOTWEAR

H-HEAL SANDAL M-HEAL SANDAL WEDGE HEAL SANDAL FLAT SANDAL CASUAL SANDAL SPORTS SANDAL COMFORT SANDAL FORMAL SANDAL EVA SANDAL

KIDS FOOTWEAR

KIDS BOYS KIDS GIRLS INFANT BOYS INFANT GIRLS BOTIES


48

STORE OPENING

1. Check the lock before unlock.

2. unlock the door at 9:30 am.

3. Switch on optimum lights on floor.

4. Security in place with complete uniform.

5. Adequate housekeeping staff sould be in store.

6. Select the housekeeping workdone, cleaning, moppng.

7. Switch on A.C. at 10:00 am.

8. Switch on the music.

9. Trials rooms are empty and clean before 10:30 am.

10. Floats issued in tills and dedicated cashier by 10:25 am.

11. Ensure that staff is complete uniform by 10:30 am.

12. Merchandise well present on the floor.

STORE CLOSING

1. All the tills closed.

2. Switch off sensomatic, E.D.C. machine, music at till point.

3. Recycling of Security ags and hangers.

4. Merchandise well present on the floor.

5. Trial rooms are empty.

6. Switch off A.C.

7. Switch off all lights.

8. Lock Manager’s room.

9. Lock I.T. room.

10. Switch off Sensomatic on both floors and at entrance.


49

11. Security in place with complete uniform at back door.

12. Manager signature.

13. Security signature.

DUTIES &RESPONSIBILITIES OF STORE MANAGER

Duties & Responsibilities

Sales Forecasting & Budget

Personnel Recruitment, selection, training, motivation and evaluation

Merchandise Display, Inventory Management and merchandise reorders

Handling store receipts, preparing bank transactions, opening and closing

store

Reviewing customer complaints

Reviewing computer data forms

Review of overall operations and reports to top management.

DEPARTMENT MANAGERS DETAIL CHECKLIST

Cleaning and Dusting

Floor cleaned and Mopped


50

Fixture (Clean, Alignment & Breakage)

Stock Replenishment

All style displayed on floor.

Size cubing on all merchandise

Price t ickets on all merchandise

Security tag on all merchandise

Merchandise well presented

Shelf Talkers (Clean and Properly displayed)

Ensure ironing of Merchandise is in process.

Trial rooms clean

Cash Counters Clean (Merchandise, hangers & tags)

Daily sales register updation

Daily grooming check

Ensure that the adequate manpower on the floor on hourly basis

Staff should try and attend each and every customer, greeting is very

important


51

Ensure that staff is regularly interacting with the customer by giving

exceptional service for customer delight at al l t ime

Ensure the presence of one manager at any given t ime on each floor

Time and again check that the vil l ing check out is fast enough as per the

standard norms

Ensure that the lunch breaks should start by 1:00 pm and finished by max

4:00 pm

Ensure the presence of al l staff on the floor in peak hours between 5:00

pm to 9:30 pm

Time and again check on walk-ins, average bil l size, sales on hourly basis

an accordingly

Encourage the staff for further improvement

Ensure your morning shift staff and weekly off for the next day is

conveyed to al l staff .

Maintain DM’s log book on daily basis & acknowledge by SM, ASM on

daily basis


52

CRE DETAIL CHECKLIST

Cleaning and dusting of shelves, browsers, arms & back bars.

Check at 10:30 am floor clean & mopped

Fixture (Clean & Alignment)

Have a walk on the floor after 10:30 am and check the replenishment

require

Stock replenishment for new lines & broken sizes on the floor

Remove broken sizes from the floor if i t is not available in back

Ensure that al l style displayed on floor

Price t ickets on all merchandise

Start size cubing on all merchandise

Security tags on all merchandise

Merchandise well presented

Start ironing of merchandise at 10:00am ti l l 4:00 pm

Trials rooms (clean, tokens and manned) by 10:30 am

Try and attend each and every customer, greeting is very important .


53

Distribution Of Target In Departments

Let,

Store target = Rs 50,00,000

Department Target = Rs. 9,50,000

Department Target in % = 19%

One Month = 8 weekends and 23 week days One Weekend Target = Rs 9,50,000/23 = Rs 41304

Total weekend target = Rs 41304*8 = Rs 3,30,434

Total weekday target = Rs 9,50,000- Rs 3,30,434 = Rs 6,19,566

One weekday target = Rs 6,19,566/23 = Rs 26,937

CRE target (Monthly) = Rs 9,50,000/5 = Rs 1,90,000

One Weekend Target = Rs 41304

One Weekday Target = Rs 26937


54


55

DIPSTICK PARAMETERS

Enable retai lers to f ind out about the health of

specific area of operation in an instant .

Customer Transactions

Customer Conversion Ratio

Return To Net Sales

Transactions Per Hour

Sales Per Transaction

Hourly Customer Traffic

Stocks

Average Sell ing Price


56

Average Stock Price

Stock Turnover/Inventory Turnover Rate

Percentage Inventory Costs

Gross Margin Return on Inventory

Markdown Goods Percentage

Shrinkage to Net Sales

Space

Occupancy Cost Per Square Foot Sell ing Space

Sales Per Square Foot

Stock Per Square Foot

Percentage of Sell ing Space

Employees

Net Sales Per Full Time Employee

Labour Productivity

Gross Margin Per Full Time Employee



= Number Of Transactions x 100


57

Customer Traffic

-Reflects Retailers abil i ty to turn a potential customer into a buyer

-Low figure means that promotional activit ies are not being converted into sales

or that the overall sales effort needs to be assessed afresh

-Automatic counting mechanisms or periodic surveys of customer traffic

Returns to Net Sales

Returns to Net Sales

= Total Returns x 100

Net Sales

-Indication of Customer satisfaction

-Increase in value is an early warning indication

-Quali ty of merchandise is a suspect

Transactions Per Hour

Transactions Per Hour = Number Of Transactions

Number of Hours

-Hourly variat ions in sales activit ies is important for sett ing store hours and

staff schedules

-Cash registers will give the t ime of sale



58


= Net Sales

Number Of Transactions

-Reflects Retailers abil i ty to turn a potential customer into a buyer

-Low figure means that promotional activit ies are not being converted into sales

or that the overall sales effort needs to be assessed afresh

-Automatic counting mechanisms or periodic surveys of customer traffic



= Customer Traffic In

Number of Hours

-Can be applied to an entire store or a single department to schedule hours and

establish staff levels

-Used to track customer traffic

Average Selling Price

Average Sell ing Price

Total Values of Good Sold

Total Quanti ty Sold


59

Average Stock Price

Average Stock Price

= Total Values of Goods in Stock

Total Quanti ty in Stock

-Turning stocks around efficiently yields better profi ts

-If daily sales account for 2% sales i t wil l take 50 days to sell stock and in 365

days the turnaround of the stock is 365/50 i .e 7.3 t imes

Stock Turnover / Inventory Rate Turnover

Stock Turnover / Inventory Rate Turnover

= Net Sales

Average Retail Value of Inventory

-Indicates how often the inventory is sold and replaced in a given period of t ime

-When this rat io declines there is a possibil i ty that the inventory is excessive

Percentage Inventory Carrying Costs

Percentage Inventory Carrying Costs

= Inventory Carrying costs x 100

Net Sales


60

-Important measure as there is a r ise in inventory carrying costs due to higher

interest rates

-Important to reduce stock obsolescence and prevent blockage of working

capital

-Retailers use this measure to track the percentage of their net sales represented

by the fixed costs of maintaining inventory.



= Gross Margin

Average Value of Inventory

-GMROI compares the margin on sales with the original cost value of

merchandise to yield a return on merchandise investment

-Preferably the inventory is to be valued at cost rather than retai l value as i t

gives a better indication of investment

Markdown Goods percentage

Markdown Goods percentage

= Net Sales at Markdown


61

Total Net Sales

-If the rat io increases, the retai ler may need to take a closer look at

merchandising practices, especially pricing

-Markdowns may be symptoms of other problems l ike or buying, advert ising or

store layout.



= Actual Inventory – Book Inventory x 100

Net Sales

-Percentage of net sales lost due to shrinkage

-Does not indicate cause of shrinkage but the magnitude of the problem.

Occupancy Cost Per Square Foot Selling Space

Occupancy Cost Per Square Foot Sell ing Space

= Occupancy Cost

Square Feet of Sell ing Space


62

-Translates into occupancy cost per unit of sel l ing space

-In other words the amount that needs to be generated by that unit of space to

just ify occupancy costs

-For multi-unit retai ler i t is a useful tool to compare the performance of units at

different locations.



= Net Sales

Square Feet of Sell ing Space

-Used to compare different departments or stores using a common standard

-Important tool to decide al ternate uses of the space

Percentage of Selling Space

Percentage of Sell ing Space

= Sell ing Space x 100

Total Space

-Efficiency of space uti l i ty

-Ratio varies with merchandise and can be used to compare different

departments or stores.


63



= Net Sales

Total Full Time Employees

-Average Sales generated by each full t ime employee

-Can be used to set performance targets.

Labour Productivity

Labour Productivity

= Total Labour Costs x 100

Net Sales

-Tracks labour costs incurred to achieve a given sales volume

-Can be applied purely to sales employees



64


= Gross Margin

Total Full Time Employees

-Gross profi t generated per employee, used to gauge performance of sales

employees

-Not the only measure but a start ing tool.

THE STORE LAYOUTThe store design and layout tells a customer what the store is all about. It is a very strong tool in

the hands of the retailer for communicating and creating the image of the store in the minds of the

customers.


65

For a retailer store layout is:

The primary considerations that the retailer takes into account while choosing the look for his

store are his target audience, their needs, and buying habits and the merchandise that he is going

to sell. Creating a store image is like giving a personality to the store

For the consumer:

A store needs to be simple to navigate; it must appeal to his sensory perceptions and must create a

sense of belonging, a sense of relationship, a sense of security or assurance and a sense of

pleasure in the shopping experience

Finally it is the physical attribute of the store which affects the customer’s sensory perceptions,

and makes him relate to the store in a particular manner.

The store layout can be classified into

Grid

Race track

Free form.

Grid layout: It is most commonly used in a supermarkets and discount stores. It Is a

preferred layout in many retail stores that adopt self service.

Race track layout: This layout is popularly found in department stores. The display is in the form

of the race track or a loop with a major aisle running through the store. It links the various

departments or the sections inside the store.

Free form layout: In a freeform, merchandise is arranged in an asymmetrical

manner. I t al lows for free movement and is often used in retai l outlets to

encourage people to browse and shop.


66

Kids wear Department

Foot wear Department

Western wear Department

Ethnic wear and home

Department

AccessoriesDepartment

MenswearDepartment

CashTill

Baggage Counter

700 ft2

2350 ft2

1502 ft2

2315 ft2

1805 ft2

2234 ft2

12 3

4

Pantry

MAX STORE LAYOUT

Consumer Behavior and Marketing Strategy

The study of consumers helps firms and organizations improve their marketing

strategies by understanding issues such as how


67

The psychology of how consumers think, feel , reason, and select between

different al ternatives (e.g. , brands, products);

The the psychology of how the consumer is influenced by his or her

environment (e.g. , culture, family, signs, media);

The behavior of consumers while shopping or making other marketing

decisions;

Limitations in consumer knowledge or information processing abil i t ies

influence decisions and marketing outcome;

How consumer motivation and decision strategies differ between products

that differ in their level of importance or interest that they entail for the

consumer; and

How marketers can adapt and improve their marketing campaigns and

marketing strategies to more effectively reach the consumer.

Understanding these issues helps us adapt our strategies by taking the consumer

into consideration. For example, by understanding that a number of different

messages compete for our potential customers’ at tention, we learn that to be

effective, advert isements must usually be repeated extensively. We also learn

that consumers will sometimes be persuaded more by logical arguments, but at

other t imes will be persuaded more by emotional or symbolic appeals. By

understanding the consumer, we will be able to make a more informed decision

as to which strategy to employ.


68

One "official" definit ion of consumer behavior is "The study of individuals,

groups, or organizations and the processes they use to select , secure, use, and

dispose of products, services, experiences, or ideas to satisfy needs and the

impacts that these processes have on the consumer and society." Although i t is

not necessary to memorize this definit ion, i t brings up some useful points:

Behavior occurs ei ther for the individual, or in the context of a group

(e.g. , fr iends influence what kinds of clothes a person wears) or an

organization (people on the job make decisions as to which products the

firm should use).

Consumer behavior involves the use and disposal of products as well as

the study of how they are purchased. Product use is often of great interest

to the marketer, because this may influence how a product is best

posit ioned or how we can encourage increased consumption. Since many

environmental problems result from product disposal (e.g. , motor oil

being sent into sewage systems to save the recycling fee, or garbage pil ing

up at landfil ls) this is also an area of interest .

Consumer behavior involves services and ideas as well as tangible

products.

The impact of consumer behavior on society is also of relevance. For

example, aggressive marketing of high fat foods, or aggressive marketing

of easy credit , may have serious repercussions for the national health and

economy.


69

There are four main applications of consumer behavior:

The most obvious is for marketing strategy—i.e. , for making better

marketing campaigns. For example, by understanding that consumers are

more receptive to food advertising when they are hungry, we learn to

schedule snack advertisements late in the afternoon. By understanding that

new products are usually init ial ly adopted by a few consumers and only

spread later, and then only gradually, to the rest of the population, we

learn that (1) companies that introduce new products must be well

f inanced so that they can stay afloat unti l their products become a

commercial success and (2) i t is important to please init ial customers,

since they will in turn influence many subsequent customers’ brand

choices.

A second application is public policy . In the 1980s, Accutane, a near

miracle cure for acne, was introduced. Unfortunately, Accutane resulted in

severe birth defects if taken by pregnant women. Although physicians

were instructed to warn their female patients of this, a number st i l l

became pregnant while taking the drug. To get consumers’ at tention, the

Federal Drug Administrat ion (FDA) took the step of requiring that very

graphic pictures of deformed babies be shown on the medicine containers.

Social marketing involves gett ing ideas across to consumers rather than

sell ing something. Marty Fishbein, a marketing professor, went on


70

sabbatical to work for the Centers for Disease Control trying to reduce the

incidence of transmission of diseases through i l legal drug use. The best

solution, obviously, would be if we could get i l legal drug users to stop.

This, however, was deemed to be infeasible. I t was also determined that

the practice of sharing needles was too ingrained in the drug culture to be

stopped. As a result , using knowledge of consumer at t i tudes, Dr. Fishbein

created a campaign that encouraged the cleaning of needles in bleach

before sharing them, a goal that was believed to be more realist ic.

As a final benefi t , s tudying consumer behavior should make us better

consumers. Common sense suggests, for example, that if you buy a 64

l iquid ounce bott le of laundry detergent, you should pay less per ounce

than if you bought two 32 ounce bott les. In practice, however, you often

pay a size premium by buying the larger quanti ty. In other words, in this

case, knowing this fact wil l sensit ize you to the need to check the unit

cost labels to determine if you are really gett ing a bargain.

There are several units in the market that can be analyzed. Our main thrust in

this course is the consumer . However, we will also need to analyze our own

firm’s strengths and weaknesses and those of competing f irms . Suppose, for

example, that we make a product aimed at older consumers, a growing segment.

A competing firm that targets babies, a shrinking market, is l ikely to consider

reposit ioning toward our market. To assess a competing firm’s potential threat ,

we need to examine i ts assets (e.g. , technology, patents, market knowledge,

awareness of i ts brands) against pressures i t faces from the market. Finally, we


71

need to assess condit ions (the marketing environment). For example, al though

we may have developed a product that offers great appeal for consumers, a

recession may cut demand dramatically.

Segmentation

Segmentation is important in consumer analysis because understanding the

consumer will allow us segment the market more meaningfully.

Segmentation basically involves dividing consumers into groups such that

members of a group (1) are as similar as possible to members of that same

group but (2) differ as much as possible from members other segments.

This enables us then to "treat" each segment differently—e.g., by:

Providing different products (e.g., some consumers like cola taste,

while others prefer l ime)

Offering different prices (some consumers will take the cheapest

product available, while others will pay for desired features)

Distributing the products where they are likely to be bought by the

targeted segment.

Culture


72

Culture is part of the external influences that impact the consumer. That is,

culture represents influences that are imposed on the consumer by other

individuals.

The definition of culture is "That complex whole which includes

knowledge, belief, art , morals, custom, and any other capabilit ies and

habits acquired by man person as a member of society."

Culture has several important characteristics:

(1) Culture is comprehensive . (2) Culture is learned rather than being

something we are born with. (3) Culture is manifested within boundaries of

acceptable behavior. (4) Conscious awareness of cultural standards is

l imited. (5) Cultures fall somewhere on a continuum between static and

dynamic depending on how quickly they accept change.

Different perspectives exist in different cultures on several issues; e.g.:

Monochronic cultures tend to value precise scheduling and doing one

thing at a t ime; in polychronic cultures, in contrast, promptness is

valued less, and multiple tasks may be performed simultaneously.

(See text for more detail).

Space is perceived differently. Americans will feel crowded where

people from more densely populated countries will be comfortable.


73

Symbols differ in meaning. For example, while white symbols purity

in the U.S., i t is a symbol of death in China. Colors that are

considered masculine and feminine also differ by culture.

In terms of etiquette, some cultures have more rigid procedures than

others. In some countries, for example, there are explicit standards as

to how a gift should be presented. In some cultures, gifts should be

presented in private to avoid embarrassing the recipient; in others, the

gift should be made publicly to ensure that no perception of secret

bribery could be made.

The United States has undergone some changes in its predominant culture

over the last several decades. Again, however, i t should be kept in mind

that there are great variations within the culture. For example, on the

average, Americans have become less materialistic and have sought more

leisure; on the other hand, the percentage of people working extremely

long hours has also increased. The text discusses changes in values in more

detail .

Demographics and Social Stratification

Demographics are clearly tied to subculture and segmentation. Here,

however, we shift our focus from analyzing specific subcultures to trying

to understand the implications for an entire population of i ts makeup.


74

Several issues are useful in the structure of a population. For example, in

some rapidly growing countries, a large percentage of the population is

concentrated among younger generations. In countries such as Korea,

China, and Taiwan, this has helped stimulate economic growth, while in

certain poorer countries, i t puts pressures on society to accommodate an

increasing number of people on a fixed amount of land. Other countries

such as Japan and Germany, in contrast, experience problems with a

"graying" society, where fewer non-retired people are around to support an

increasing number of aging seniors. Because Germany actually hovers

around negative population growth, the German government has issued

large financial incentives, in the forms of subsidies, for women who have

children. In the United States, population growth occurs both through

births and immigration. Since the number of births is not growing,

problems occur for firms that are dependent on population growth (e.g.,

Gerber, a manufacturer of baby food).

Family Decision Making

The Family Life Cycle . Individuals and families tend to go through a "life

cycle." The simple life cycle goes from

child/teenager ---> young single ---> young couple* ---> full nest


75

---> empty nest ---> widow(er).

*For purposes of this discussion, a "couple" may either be married or

merely involve living together. The breakup of a non-marital relationship

involving cohabitation is similarly considered equivalent to a divorce.

In real l ife, this situation is, of course, a bit more complicated. For

example, many couples undergo divorce. Then we have the scenario:

full nest ---> single parent

Family Decision Making : Individual members of families often serve

different roles in decisions that ultimately draw on shared family

resources. Some individuals are information gatherers/holders , who seek

out information about products of relevance. The decision maker(s) have

the power to determine issues such as:

owhether to buy;

owhich product to buy (pick-up or passenger car?);

owhich brand to buy;

owhere to buy it; and

owhen to buy.


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Group Influences

Humans are inherently social animals, and individuals greatly influence

each other.

A useful framework of analysis of group influence on the individual is the

so called reference group—the term comes about because an individual

uses a relevant group as a standard of reference against which oneself is

compared. Reference groups come in several different forms. The

aspirational reference group refers to those others against whom one

would like to compare oneself. For example, many firms use athletes as

spokespeople, and these represent what many people would ideally like to

be. Associative reference groups include people who more realistically

represent the individuals’ current equals or near-equals—e.g., coworkers,

neighbors, or members of churches, clubs, and organizations. Finally, the

dissociative reference group includes people that the individual would not

l ike to be like. For example, the store li terally named The Gap came about

because many younger people wanted to actively dissociate from parents

and other older and "uncool" people. The Quality Paperback Book

specifically suggests in its advertising that i ts members are "a breed apart"

from conventional readers of popular books.


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Diffusion of Innovation

The diffusion of innovation refers to the tendency of new products,

practices, or ideas to spread among people. Usually, when new products or

ideas come about, they are only adopted by a small group of people

initially; later, many innovations spread to other people. The bell shaped

curve frequently il lustrates the rate of adoption of a new product.

Cumulative adoptions are reflected by the S-shaped curve. The saturation

point is the maximum proportion of consumers likely to adopt a product. In

the case of refrigerators in the U.S., the saturation level is nearly one

hundred percent of households; i t well below that for video games that,

even when spread out to a large part of the population, will be of interest

to far from everyone.

Some cultures tend to adopt new products more quickly than others, based

on several factors:

oModernity: The extent to which the culture is receptive to new

things. In some countries, such as Britain and Saudi Arabia,

tradition is greatly valued—thus, new products often don’t fare

too well. The United States, in contrast, tends to value progress.

oHomophily: The more similar to each other that members of a

culture are, the more likely an innovation is to spread—people


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are more likely to imitate similar than different models. The two

most rapidly adopting countries in the World are the U.S. and

Japan. While the U.S. interestingly scores very low, Japan

scores high.

oPhysical distance: The greater the distance between people, the

less l ikely innovation is to spread.

oOpinion leadership: The more opinion leaders are valued and

respected, the more l ikely an innovation is to spread. The style of

opinion leaders moderates this influence, however. In less

innovative countries, opinion leaders tend to be more conservative,

i .e . , to reflect the local norms of resistance.

Perception

Background . Our perception is an approximation of reali ty. Our brain at tempts

to make sense out of the st imuli to which we are exposed. This works well , for

example, when we "see" a fr iend three hundred feet away at his or her correct

height; however, our perception is sometimes "off"—for example, certain

shapes of ice cream containers look l ike they contain more than rectangular

ones with the same volume.

Factors in percpetion. Several sequential factors influence our perception.

Exposure involves the extent to which we encounter a st imulus. For example,


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we are exposed to numerous commercial messages while driving on the freeway:

bil l boards, radio advert isements, bumper-st ickers on cars, and signs and

banners placed at shopping malls that we pass. Most of this exposure is random

—we don’t plan to seek i t out . However, if we are shopping for a car, we may

deliberately seek out advert isements and "tune in" when dealer advert isements

come on the radio.

Learning and Memory

Background. Learning involves "a change in the content or organization of

long term memory and/or behavior." The first part of the definit ion focuses on

what we know (and can thus put to use) while the second focuses on concrete

behavior. For example, many people will avoid foods that they consumed

shortly before becoming i l l . Learning is not al l knowledge based. For example,

we may experience the sales people in one store being nicer to us than those in

the other. We thus may develop a preference for the one store over the other;

however, if pressed, we may not be able to give a conscious explanation as to

the reason for our preference.

Motivation, Personality, and Emotion

Perspectives on Consumer Behavior and Motivation . We considered

several perspectives on behavior as a way to understand what motivates the


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consumer. Each of these perspectives suggests different things as to what the

marketer should do and what can (and cannot) be controlled. Note that each

perspective tends to contain a "grain" oftruth and that one should not be too

dogmatic in emphasizing one over the others.

Maslow’s Hierarchy of Needs . The late Abraham Maslow suggested

the intuit ively appealing notion that humans must satisfy the most basic

objectives before they can move onto "higher level" ones. Thus, an individual

must satisfy physiological needs (such as food and l iquid) before he or she will

be able to expend energy on less fundamental objectives such as safety. Only

when basic objectives have been met will a person move on to seek such

objectives as love and belonging, and only a small minority of people make i t as

far as seeking self-actualization.

Maslow’s Hierarchy is useful in understanding different needs of consumers

across the World. However, one must be careful not to take i t too l i terally,

since people may occasionally "swing" between needs. For example, a homeless

person who currently does not have shelter may seek that out even though he or

she is hungry.

Propert ies of motivation. Motivation is described through several propert ies:

Motivation is composed of energy and direction . A person may or may

not have enough motivation to engage in a given activity. For example, a


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person may be motivated enough to go and shop for food, but not enough

to engage in a comprehensive exercise program.

Motives may be overt, hidden, and multiple . Some motivations are

publicly expressed (e.g. , the desire to buy an energy efficient house),

while others (e.g. , the desire to look wealthy by buying a fancy car) are

not. Individuals may also hold multiple motivations (e.g. , buy a car and

save money for ret irement) which may conflict .

Many motivations are driven by the desire for tension reduction

(e.g. , el iminate thirst or hunger).

Motivations can be driven by both internal and external factors .

That is , a person may want a painting either because he or she l ikes i t

( internal motivation) or because this will give her status among the

art ist ic el i te (external) .

Motivations may have either a positive or negative valence --people

may either be motivated to achieve something (e.g. , get a promotion at

work) or avoid something (e.g. , being hospital ized without having

adequate insurance).

Consumers are motivated to achieve goals . Achieving these goals may

require sustained activity over t ime (e.g. , exercising every day for months

or years) as opposed to just taking some action once.

Consumers maintain a balance between the desires for stability and

variety . Most consumers want some variety (e.g. , they do not want to eat


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the same meal every day), but also want a certain stabil i ty ( they do not

want to try an entirely new food every day).

Motivation reflects individual differences . Different consumers are

motivated to achieve different things, and i t may be difficult to infer

motivations from looking at actual behavior without understanding these

differences in desired outcomes.

Self-Concept, Situational Influences, and Lifestyle

The self-concept . The consumer faces several possible selves. The actual

self reflects how the individual actually is , al though the consumer may not be

aware of that reali ty (e.g. , many anorexic consumers who are dangerously thin

believe that they are in fact fat) . In contrast , the ideal self reflects a self that a

person would l ike to have, but does not in fact have. For example, a couch

potato may want to be a World famous athlete, but may have no actual athlet ic

abil i ty. The private self is one that is not intentionally exposed to others. For

example, a police officer may l ike and l isten to rap music in private, but project

a public self-image of a country music enthusiast , playing country songs at

work where police officers are portrayed as heroes. The key here is to keep in

mind which kind of self we are trying to reach in promotional messages. If we

appeal to the hidden self , for example, we must be careful to make our appeals

subtle and hint , i f appropriate, on how the individual’s confidential i ty and

privacy can be enhanced.


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Individuals will often seek to augment and enhance their self concepts, and i t

may be possible to market products that help achieve this goal . For example, a

successful at torney may want to wear ( in poli t ically correct terms) cowchild

boots and a cowchild hat to bring home an image as a ranch enthusiast .

Lifestyles. Self-concept often translates into a person’s l ifestyle, or the way

that he or she l ives his or her l ife. For example, a person may be very

material ist ic, preferring to wear f lashy clothes and drive expensive cars, or

prefer instead a simpler l ife with fewer visible status symbols. Attempts have

been made to classify consumers into various segments based on their l ifestyles.

The Values and Lifestyle (VALS) Project , developed by the Stanford Research

Insti tute (SRI), at tempts to classify people based on a combination of values

and resources. Thus, for example, both "Achievers" and "Strivers" want public

recognit ion, but only the Achievers have the resources to bring this about. A

global analogue is the Global Scan.

Situational influences . Specific circumstances often influence consumer

behavior. For example, consumers in a rush are l ikely to take the most

convenient product available. Consumers whose at tention is demanded

elsewhere are l ikely to disregard commercial messages. Consumers shopping for

a special occasion (e.g. , a wedding) may buy different products.


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Consumer Decision Making

Definitions . Consumer decision making comes about as an attempt to solve

consumer problems. A problem refers to "a discrepancy between a desired

state and an ideal state which is sufficient to arouse and activate a decision

process." Thus, problems can be major (e.g., a consumer has been fired and

is without a job) or minor (e.g., the consumer lacks an eraser necessary to

take an exam the next day), and the broader and more ambiguous a problem

is, the more potential solutions are generally available (see class slides for

examples).

Consumer Problem Recognition. Consumers often note problems by

comparing their current, or actual, situation, explicitly or implicitly, to

some desired situation. In terms of the "big picture," what is compared may

be the totality of one’s lifestyle. Once a discrepancy is found, a

determination is found as to whether this is large enough to warrant action,

in which case a search for solutions is initiated.

Problems come in several different types. A problem may be an active one

(e.g., you have a headache and would like as quick a solution as possible)

or inactive-- you are not aware that your situation is a problem (e.g., a

consumer is not aware that he or she could have more energy with a new

vitamin). Problems may be acknowledged (e.g., a consumer is aware that


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his or her car does not accelerate well enough or unacknowledged (e.g., a

consumer will not acknowledge that he or she consumes too much alcohol).

Finally, needs can be relatively specific (generic), as in the need for

enjoyment (which can be satisfied many different ways), or specific, as in

the need for professional attire to wear at a new job.

Several different methods can be used to detect consumer problems, which

are discussed on pp. 508-509 in the text.

Creating problems for consumers is a way to increase sales, albeit a

questionably ethical one. One way to create new problems, and resultant

needs, is to create a new ideal state. This is often done quite arbitrarily in

the fashion industry, as skirt lengths and the appropriate number of buttons

on a suit often change arbitrarily up and down. It may also be possible to

create dissatisfaction with current states--e.g., a firm may publicize current

crime statistics to increase the sales of handguns and alarms. Many

vocational training schools advertise that better careers than the

consumer’s current one are available upon graduation (a promise on which,

by the way, they may not deliver in the end).

There are two main approaches to search. Internal searches are based on

what consumers already know. Thus, i t may be important for certain firms

to advertise to consumers before they actually need the product. For

example, one bail bond company advertised its existence to people "in case


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you ever find yourself in jail ." As another example, if you decide to go out

for fast food, you may not consult any directories, but instead search your

memory for fast food restaurants conveniently located. A problem is that

some excellent ones which are not remembered, or have never been heard

of, are not considered. External searches get people to either speak to

others (getting information by word of mouth) or use other sources (such as

advertisements now sought out or yellow page listings). Because the yellow

pages are often the first place to which people turn, this medium is able to

charge very large advertising rates.

Consumers often do not consider all alternatives. Some are not known (the

"unawareness" set), some were once known but are not readily accessible

in memory (the "inert" set), others are ruled out as unsatisfactory (the

"inept" set--e.g., Glad bags attempts to get "bargain bags" into that set),

and those that are considered represent the "evoked" set, from which one

alternative is l ikely to be purchased.

The amount of effort a consumer puts into searching depends on a number

of factors such as the market (how many competitors are there, and how

great are differences between brands expected to be?), product

characteristics (how important is this product? How complex is the

product? How obvious are indications of quality?), consumer

characteristics (how interested is a consumer, generally, in analyzing


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product characteristics and making the best possible deal?), and situational

characteristics (as previously discussed).

Two interesting issues in decisions are variety seeking (where consumers

seek to try new brands not because these brands are expected to be "better"

in any way, but rather because the consumer wants a "change of pace," and

"impulse" purchases . Impulse purchases are, generally speaking,

unplanned, but represent a somewhat fuzzy group. For example, a shopper

may plan to buy vegetables but only decide in the store to actually buy

broccoli and corn. Alternatively, a person may buy an item which is

currently on sale, or one that he or she remembers that is needed only once

inside the store (remember the Wal-Mart article).

Several different strategies for influencing consumer decision making are

discussed in the text on pp. 537-541.

Consumer Outlet Selection

Retail evolution and consumer choice . For many products, consumers

frequently have numerous choices as to where they are going to actually obtain

the product. Although we are used to thinking of buying automobiles only from

dealerships, for example, i t is today possible to buy them through brokers or

f leet sales organizations that may both (1) offer a lower price and/or (2) provide


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the help of a neutral third party which does not have a vested interest in the

sales of one make over the other.

In general , the evolution of diversi ty in the retai l scene has provided consumers

with more choice. In the old days, most consumers had access only to "general"

stores for most products. Gradually, in urban environments, specialty and

discount stores evolved. Today, a consumer may generally choose to buy most

products ei ther at a relat ively high price, frequently with a significant amount

of service, in a specialty store, or with lower service in a discount store. A

special case of the discount store is the category ki l ler --a store that tends to

specialize in some l imited area (e.g. , electronics), lacking the breadth of a

tradit ional discount store often undercutt ing the tradit ional discount store on

price (which they are able to do because of the bargaining power that results

from high buying volumes of a narrow assortment of merchandise from the same

manufacturer) .

"At home" shopping and electronic commerce . During the last

several decades, the incidence of "at home" shopping has increased. The growth

of catalog sales can be traced to advances in computer technology and

subsequent l ist availabil i ty (as we discussed in the section of direct marketing

segmentation methods). A more recent development is Internet based marketing.

Although sales are modest in this domain at the moment, i t is too early to judge

the total potential of this medium. Although many of the concerns that

consumers hold about computer crime tend to be exaggerated and/or largely


89

unwarranted, public fears are a major holdback. Another problem is the

demographics of computer and Internet use--the majori ty of U.S. consumers,

and certainly the great majori ty of residents of even highly industrial ized

countries, are not regular Internet users. Certain products specifically aimed at

heavy Internet users (e.g. , records, software) and products/services that require

a high level of customization (e.g. , air l ine t ickets) may find good opportunit ies.

An interesting problem with Internet commerce, which may well have spil lover

effects outside the realm of the Net, is the relat ive ease with which consumers

may compare prices of different retai lers, result ing in intense price competi t ion.

Note that recent legislat ion has l imited taxation of Internet sales in the U.S., in

a sense at tempting to "jump start" this innovation.

Store positioning. Posit ioning of retai l stores is essential . In general , stores

which excel on a signif icant dimension seem to perform better--for example,

Nordstrom’s excels through i ts intense customer service, while Wal-Mart excels

through i ts efficiency and low prices. (In a course on marketing strategy or

retai l ing, you will probably discuss the issue of the importance of balanced

markets--i t is healthier if different f irms have different strategies, so that

everyone will not be competing intensely on the same variables). Stores which

fal l somewhere in between--e.g. , Sears--tend to do less well since they get

"stuck in the middle" and have to compete against both. Obviously, there is a

l imit to how strongly you can move toward one extreme. For example, if

Nordstrom were to double i ts prices and even double i ts service, that posit ion

would be untenable, and certain extreme discount stores that offer lower prices


90

than Wal-Mart tend not to be successful because they are ult imately not

satisfactory to consumers.

Consumer behaviour and retailingConsumer behaviour and retailing

decisionsdecisions

Does consumers' selection of retail outlets depend on the brands available or is

i t the retail outlet f irst and the brand next? Marketers need to do in-depth

research on the various aspects that l ink brand and retail strategy.

DECISION-MAKING with regard to retai l outlet selection is very similar to

consumer decision-making on brands where the consumer goes through a

process start ing from identifying needs to post-purchase issues. There are a few

interesting and important dimensions associated with consumer behaviour and

retai l outlet selection.

Does the retai l outlet have psychological implications on the target segment?

When Titan and Timex watches were retai led through exclusive shops,


91

consumers wanting lower-end watches probably fel t that a typical Titan

showroom was too eli t ist , which could have had a negative impact.

Does selection of outlets vary in accordance with types of product

categories? While buying a TV or a washing machine, would consumers visi t an

exclusive showroom of BPL, Onida or Sony, or would they visi t a multi-brand

outlet?

Would there be differences in the psychographic (and demographic) profi les

of consumers choosing outlets? What is the sequence in which consumers are

l ikely to go about their decisions? Will they select the brand or the category

first before choosing the outlet?

What is the impact of the image developed by a retai l outlet? Is FoodWorld

different from a neighbourhood grocery shop in the minds of consumers? What

kind of perception are consumers l ikely to have with regard to shopping from an

online outlet such as Fabmart vis-à-vis a brick-and-mortar outlet l ike

Fountainhead or Landmark?

Would consumers be interested in store or retai l brands? Tradit ionally,

retai lers have been carrying manufacturers ' brands. But in recent t imes (at least

to a significant extent in the foods category), supermarkets such as FoodWorld

have started carrying retai l or store brands. Nilgiri 's is another example in the

South which carries i ts own brands of chocolates, biscuits and other

commodities.


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What contributes to retai l equity or retai l image or retai l loyalty?

How do retai l outlets handle perceived risks?

Marketers need in-depth knowledge about the various dimensions which l ink

retai l ing and consumer behaviour. There is research required to handle retai l

decisions in a competi t ive context. McDonald's found that a major chunk of i ts

consumers decide to eat a few minutes before they make the purchase decisions

and hence i t is building small outlets in large supermarkets such as Wal-Mart

and Home Depot. I t is providing play areas to ensure a number of families visi t

i ts outlets with children. A few companies also operate through kiosks in

airports, malls and high-traffic areas. Sunglass Hut is a brand which operates

kiosks at various places which displays about 1,000 different models along with

their prices. Consumers could place an order through these kiosks and the

product is home-delivered.

Retail outlet selection and brand selection


93

There are three fundamental patterns, which a consumer can follow and they

could be:

(I) Brand first , retai l outlet second

(i i) Retail outlet f irst , brand second

(i i i) Brand and retai l outlet simultaneously.

A consumer wanting to buy a car may collect information on brands and

purchase i t from a retai l outlet based on his perception of price offered or after-

sales service provided by the outlet ( typically, search for information on brands

is followed by retai l outlet selection in durables). In certain product categories,

especially where `category kil lers ' exist , consumers may think of the retai l

outlet ini t ial ly and then the brands (television, refrigerator and audio products

retai led through outlets l ike Vivek and Co. in the South, could be an example).


94

One more dimension may be to compare brands in the evoked set at retai l

outlets which also exist in an evoked set of their own. This is highly possible,

especially in the Indian context where dealers develop a social relat ionship with

consumers, especially in semi-urban and rural areas. Primary research could be

used to discover the specific sequence involved in a si tuation of this kind. A

`brand first ' dimension may need feature-based advertising and a `retai l outlet

f irst ' dimension may require a set of point-of-purchase (POP) materials and

special training to sales personnel to recognise the needs of consumers.

Further, i f i t is known that a number of consumers may be oriented to visi t their

favourite retai ler (before obtaining information on brands) in a geographical

area, there would have to be more emphasis on regional/ local advert ising which

highlights the retai l shop rather than regular brand-based national advert ising.

Strategies and sequences

Retail outlet f irst and brand second: When a number of consumers follow this

sequence of decision-making, display of point-of-purchase material and

building the image of the outlet becomes important . The manufacturer of the

brand may have to ensure that the brand (and the variants demanded) will be

available at the key outlets in a locali ty. Point-of-purchase materials which are

to be used at the retai l outlet may require primary research - should visuals be

used, should product features be used, should the POP material be in the

regional language. There may also be a need to monitor competi t ion from other


95

retai l outlets to ensure that consumers are kept satisfied in terms of service,

price, promotional deals and ambience. This is especially applicable to durables

retai l ing in India (in ci t ies) . Retailers at tempt to increase consumer traffic by

providing a number of `add-ons' .

Brand first and outlet second: The brand was probably thought of by the

consumers because (i) the consumers may not have developed a relat ionship

with any retai ler which is strong enough to get into the `evoked retai l set ' or ( i i)

the brand has got into the evoked set because of advert ising or posit ive word of

mouth. Local advert ising with the mention of brand names which have already

got into the evoked set would enable consumers to be `pulled' to the outlet .

Primary research may be required to identify the brands in the evoked set . This

feedback may have to be provided by the manufacturers of a brand to retai lers

in various regions (especially if i t is a brand with a major chunk of the market

and one which is nationally advert ised). Even multinational outlets could make

use of this approach and mention the brands in the evoked set ( in a given

geographical area). This is l ikely to improve traffic to the outlet . Besides, the

evoked set could also change from time to t ime depending on the strategies of

brands.

About two decades ago, brands l ike Solidaire, Dyanora and Crown may have

been top-of-the-mind (in a specific geographical area) but slowly gave way to

other brands - these changes should be captured (how often this happens, why,

and the differences between markets) to formulate retai l strategies. The local


96

advertising could be different from the national advert ising for the brand. A

brand may be advert ised on features nationally but the retai l outlet in may

prefer to highlight the effective after-sales service associated with the brand as

this may be a priori ty of consumers. The combination of `push-pull ' s trategy is

shown in the table.

The interest generated in the brand would have to be backed by good pre-sale

services at the outlet .

Brand and retai l outlet simultaneously: When consumers think of the brand and

retai l outlet together, i t means that they have a certain preference for the outlet

and would l ike to check the evoked set of brands there. The marketer would

have to carry out primary research to find out specific markets where consumers

have a very posit ive relat ionship with retai lers. This is important because of the

influence of retai lers over the purchase behaviour of consumers in the Indian

context.

I t may also be worthwhile to check if the evoked brands are carried by the

retai lers who have a posit ive relat ionship with the target segments. This is to

ensure that the retai lers who have a favourable perception among the target

segment carry the desired brands. Fail ing this, consumers may turn to a

different retai ler , which would be to the disadvantage of a retai ler who has

already won the confidence of consumers. Retail sales personnel also become

important in this si tuation. The prospective consumers are "carried over" to the


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purchase stage by the store personnel and hence there should be incentive

programmes for the store personnel.

If a company such as BPL or Videocon is dealing with a number of brands/sub-

brands, i t has to ensure the availabil i ty of specific brands which may interest

the consumers. If the retai l outlet is a large one dealing with a number of

brands (l ike Vivek), a shop-in-shop arrangement may be preferable. This model

puts the brand in focus and reinforces the posit ive association a consumer may

have about i t . A considerable amount of pre-sale service would have to back up

the shop-in-shop concept.

The shop-in-shop concept creates an aura of exclusivity. Consumers tend to

have higher expectations about the pre-sale service and the at tention given to

them. A large store also is l ikely to stock several brands and hence all brands in

the evoked set would have to compete with each other to progress from the

evoked set to choice set . Large outlets may also have a buil t- in provision for a

lower price (because of volumes) and hence may be in a better posit ion to

cl inch the deal with consumers who may simultaneously consider both the brand

and the retai l outlet .

THE STRIKING NEW FACE OF LUCKNOWTHE STRIKING NEW FACE OF LUCKNOW


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Who says great retail is only for the metros? Check out Lucknow where residents are

shopping like never before.This city in Utterpradesh has the state's largest shopping mall. It also

holds the distinction of being one of India's cleanest cities.

It is Utterpradesh’ capital with a population nudging 30 lakh as of 2001. This is LUCKNOW,

which is now experiencing a retail revolution of sorts.Lucknow believes the general feeling that

the retail revolution as we know occurs only in the metros. A walk along the main Hagaratganj,

Aminabad, Gomtinagar Lines areas is like walking through a large shopping mall. Here, you'll

find every brand, all kinds of products in every shape, shade and size and all types of food! You'll

also find four of Lucknow's supermarkets here. All these are changing the way Lucknow shops.

Two of the largest supermarkets in LUCKNOW are Saharaganj location Hagaratganj run by the

Sahara group and wave location in gomti nagar, Fun Republic Family Entertainment

Centre,Location: Near Eldeco Greens, Gomti Nagar.Total area: 18,000 sq mtrs/ 4.5 hectares of

prime land.Project deadline: March 2006.

With a total of 74 shops, this is part of the Zee Groups master plan of 25 all-India malls. Touted

as Lucknow’s biggest mall, not just in terms of size but owing to the names it is planning to bring

into the city, the project is reportedly 95 per cent sold-out. Ladhani’s Taj Multiplex,Location:

Near Hoteltaj Residency, Gomti Nagar.Total area: 20,000 sq ft.Project deadline: March 2006.

Fortuna’s City Malllocation: Near Cms Gomti Nagar.Total Area: 70,000 Sq Ft.Project deadline:

By 2007.


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Singapore mall,gomti nagar( work in progress) . Both offer valuable lessons in how organised

retail in smaller towns can succeed. Despite dramatic changes in the retail scene, Lucknow’s

retailers feel the need for a shift in mindset, habits, more modern restaurants and theatres to drive

lifestyle changes. And this is already happening. Here we profile three leading retailers from

Lucknow. Barista, the fast-growing espresso chain. At present two mall heart of Lucknow

Saharaganj or Wave I analysis to Luck now people perception of retail store (survey only retail

channel in Sahara gang, wave). The survey was constituted in visiting of Sahara gang and wave

Customers were interviewed by means of carefully prepared questionnaire to study and

understand customer’s psychology in depth.


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Selection of the TopicSelection of the Topic

First of all our research topic was selected. The topic being “A DETAIL STUDY OF

CONSUMER BEHAVIOUR IN LIFESTYLE INTERNATIONAL Pvt. Ltd. MAX RETAIL

DIVISION AT LUCKNOW”

Objective of researchObjective of research

To know the perception of customers towards the purchasing.ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOWABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

102

To know the buying behavior of customers in retail store.

To know the strategy of retail store for attracting customers

To know the satisfaction level of customers.

Extensive literature SurveyExtensive literature Survey

The yearly Journals and manuals & project reports provide by our institute were studied.

Lots of valuable information regarding real estate industry was collected through Internet

and necessary information regarding company through website of the organization.

Sampling DesignSampling Design

Sampling unit Respondents of Fun Mall

Size of sample 100 respondents

Sample Method Random Sampling

Types of questionnaire Close ended


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Type of DataType of Data

Data type collected for analysis is PRIMARY i.e. data has been observed and recorded by

the researchers for the first time to their knowledge.

Data collected through journals, newspapers & internet is SECONDARY type.

Method of data collectionMethod of data collection

This study is a research which utilizes interrogation and observation method for data

collection. Secondary data was obtained from intensive analysis & observation. The

primary data are those, which are collected afresh and for the first time, and thus happen to

be original in character. The secondary data, on the other hand, are those which have

already been collected by some one else and which have already been passed through the

statistical process. Method employed to collect data is Questionnaire. This is a simple

survey conducted by filling in questionnaire from the people who visit malls.


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Collection of the Primary dataCollection of the Primary data

As this study is of descriptive type, the primary data has been collected through

Questionnaire.

Observation methodObservation method

Under the Observation method, the information is sought by way of direct observation

without asking from the respondent. The main advantage of this method is that subjective

bias is eliminated, if observation is done accurately.

Analysis of DataAnalysis of Data

Data collected through questionnaire is being processed .This processed data is represented

by means of suitable graphs & diagrams.


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WHICH TYPE OF PLACE DO YOU VISIT FREQUENTLY FOR YOURWHICH TYPE OF PLACE DO YOU VISIT FREQUENTLY FOR YOUR SHOPPING NEEDS ?:SHOPPING NEEDS ?:

a) SHOPPING MALL [ 80 RESPONDENTS]

b) UPSTREET MARKET [ 8 RESPONDENTS]

c) LOCAL MARKET [ 12 RESPONDENTS]

On the basis of above respondents the graph shows that maximum respondents

i.e. 80 out of 100 are agree that they frequently visit shopping mall for their

shopping needs.

It means maximum no of customer are preferred Shopping Malls for purchasing.


80%

8%

12%

RespondentsA B C

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YOU PREFER TO GO IN STORE WITH:YOU PREFER TO GO IN STORE WITH:

a. FAMILY [52 RESPONDENTS]

b. SPOUSE [12 RESPONDENTS]

c. FRIENDS [ 36 RESPONDENTS]

d. OTHERS [ 0 RESPONDENTS]

52%

12%

36%

RespondentsFAMILY SPOUSE FRIENDS OTHERS


i.e. 52 out of 100 are preferred to go in store with their family.

It means maximum no of customers are family conscious for visiting retail store.


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FROM WHERE WOULD YOU PREFER TO BUY PRODUCTS:FROM WHERE WOULD YOU PREFER TO BUY PRODUCTS:

a) SINGLE BRANDED STORE [ 24 RESPONDENTS ]

b) MULTI BRANDED STORE [ 60 RESPONDENTS ]

c) FACTORY OUTLET [ 4 RESPONDENTS ]

d) LOCAL BIG RETAIL OUTLET [ 12 RESPONDENTS ]

24%

60%

4%

12%

RespondentsSINGLE BRAND STORE MULTI BRAND STOREFACTORY OUTLET LOCAL BIG RETAIL OUTLET


i.e. 60 out of 100 are preferred multi branded store for shopping.

It means maximum no of customers are time conscious and desire for many brand

under one roof.


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HOW OFTEN DO YOU ASK FOR ASSISTENCE FROM STORE STAFF INHOW OFTEN DO YOU ASK FOR ASSISTENCE FROM STORE STAFF IN SELECTING YOUR PURCHASE?SELECTING YOUR PURCHASE?

a) ALMOST ALWAYS [ 12 RESPONDENTS ]

b) FREQUENTLY [ 16 RESPONDENTS ]

c) SOMETIMES [ 60 RESPONDENTS]

d) NEVER [ 12 RESPONDENTS ]

12%

16%

60%

12%

RespondentsALMOST ALWAYS FREQUENTLY SOMETIMES NEVER


i.e. 60 out of 100 wanted sometime assistance from store staffs.

It means maximum no of customers do not compromise with their choice.


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WHAT DO YOU LOOK FOR IN A PRODUCT DURING YOUR PURCHASE:WHAT DO YOU LOOK FOR IN A PRODUCT DURING YOUR PURCHASE:

a) FASHION [ 12 RESPONDENTS ]

b) COMFORT [ 16 RESPONDENTS ]

c) PRICE [ 60 RESPONDENTS ]

d) COLOURS AVAILABLE [ 12 RESPONDENTS ]


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12%

16%

60%

12%

RespondentsFASHION COMFORT PRICE COLOUR


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i.e. 60 out of 100 preferred price during their purchasing.

It means maximum no of customers are price conscious so maximum customers

belongs to middle class.

WHEN DO YOU PREFER TO SHOP MOST IN STORE:WHEN DO YOU PREFER TO SHOP MOST IN STORE:

a) DURING SALE [ 18 RESPONDENTS ]

b) DURING FRESH SEASON STOCK [ 54 RESPONDENTS]

c) DURING DISCOUNT [ 24 RESPONDENTS ]

d) WHEN REQUIRED [ 4 RESPONDENTS]

18%

54%

24%

4%

SalesDURING SALE DURING FRESH SEASON STOCKDURING DISCOUNT WHEN REQUIRED

On the basis of above respondents the graph shows that maximum

respondents i.e. 60 out of 100 are prefer shopping during fresh season stock.


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It means maximum no of customers did not compromise quality with discount and

offers.

A) RANGE B) PRICE C) SIZE D) FASHION E) BRAND

1st OPTION 30 20 30 8 10

2nd OPTION 22 32 25 10 13

3rd OPTION 20 18 15 14 33

4th OPTION 16 17 19 32 16

5th OPTION 12 13 11 36 28

WHAT INFLUENCES YOUR BUYING SELECTIONS:WHAT INFLUENCES YOUR BUYING SELECTIONS:


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RANGE PRICE SIZE FASHION BRAND0

5

10

15

20

25

30

35

40

Option 1Option 2Option 3Option 4Option 5


are attracted towards the Store due to this ranking-

FASHION BRAND PRICE RANGE, SIZE

It means maximum no of customers are prefer to the Malls for FASHION


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HOW FREQUENTLY YOU VISIT THE STORE: HOW FREQUENTLY YOU VISIT THE STORE:

a) <1 MONTH [ 60 RESPONDENTS ]

b) 1-3 MONTH [ 28 RESPONDENTS ]

c) 1-6 MONTH [ 4 RESPONDENTS ]

d) 1 YEAR [ 8 RESPONDENTS ]


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60%

28%

4%8%

Respondents< 1 MONTH 1-3 MONTH 1-6 MONTH 1 YEAR


i.e. 60 out of 100 are visited the store with in one month.

It means maximum no of customers are visiting the store monthly.

WHAT IS AVERAGE MONEY YOU SPEND ON SHOPING? WHAT IS AVERAGE MONEY YOU SPEND ON SHOPING?

a) <=999 [ 20 RESPONDENTS ]

b) 1000-1999 [ 52 RESPONDENTS ]

c) 2000-2999 [16 RESPONDENTS ]

d) >3000 [ 12 RESPONDENTS ]


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20%

52%

16%

12%

Respondents<= 999 1000-1999 2000-2999 >3000


i.e. 52 out of 100 are spend Rs 1000-1999 on shopping.

It means maximum no of customers prefer middle class shopping.

::HOW DO YOU RATE THE PRICING OF PRODUCT AT MAX?HOW DO YOU RATE THE PRICING OF PRODUCT AT MAX?

a) EXPENSIVE [ 10 RESPONDENTS ]

b) COMPETITIVE [ 16 RESPONDENTS ]

c) AFFORDABLE [ 34 RESPONDENTS ]

d) REASONABLE [ 40 RESPONDENTS ]


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10%

16%

34%

40%

RespondnetsEXPENSIVE COMPETITIVE AFFORDABLE REASONABLE


i.e. 40 out of 10 are agree that price of products are reasonable.

It means maximum no of customers are agree that price of products are equal to the

other market rate.

HOW DID YOU COME TO KNOW ABOUT MAX?HOW DID YOU COME TO KNOW ABOUT MAX?

a) NEWSPAPER [ 12 RESPONDENTS]

b) RADIO ADVERTISEMENT [ 12 RESPONDENTS]

c) LEAFLET [ 20 RESPONDENTS]

d) SMS [ 6 RESPONDENTS]


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e) WORLD OF MOUTH [ 46 RESPONDENTS]

f) OTHERS [ 4 RESPONDENTS]

12%

12%

20%

6%

46%

4%

RespondentsNEWSPAPER RADIO ADVERTISEMENT LEAFLETSMS WORLD OF MOUTH OTHERS


i.e. 46 out of 100 are know about max store by reference group.

It means maximum no of customers are know about the max store by other people

reference.

WHAT MORE FACILITY WOULD YOU LIKE TO GET AT MAX?WHAT MORE FACILITY WOULD YOU LIKE TO GET AT MAX? a) MEMBERSHIP CARD [ 16 RESPONDENTS]

b) DISCOUNT MAILERS [ 32 RESPONDENTS]

c) FREE PARKING OFFERS [ 24 RESPONDENTS]

d) LUCKY DRAW OFFER [ 28 RESPONDENTS]


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16%

32%

24%

28%

Respondents

MEMBERSHIP CARDDISCOUNT MAILERSFREE PARKING OFFERSLUCKY DRAW OFFER


i.e. 32 out of 100 want discount mailers facility.

It means maximum no of customers want every information at their door step.

WHICH CATEGORY OF PRODUCT DO YOU BUY MOST AT MAX?WHICH CATEGORY OF PRODUCT DO YOU BUY MOST AT MAX? a) MEN’S WEAR [ 12 RESPONDENTS ]

b) WOMEN’S WEAR [ 36 RESPONDENTS ]

c) ETHNIC WEAR [ 20 RESPONDENTS ]

d) KIDS WEAR [ 12 RESPONDENTS ]


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e) FOOTWEAR [ 4 RESPONDENTS ]

f) ACCESSORIES [16 RESPONDENTS]

12%

36%

20%

12%

4%

16%

Respondents

MEN'S WEARWOMEN'S WEARETHNIC WEARKIDS WEARFOOT WEARACCESSORIES


i.e. 36 out of 100 are purchasing maximum from women’s wear.

Customers prefer shopping according to-

WOMEN’S WEAR ETHENIC MEN’S, KID’S WEAR

FOOTWEAR ACCESSORIES

WHEN YOU THINK OF SHOPPING WHICH STORE COMES INWHEN YOU THINK OF SHOPPING WHICH STORE COMES IN

YOUR MIND FIRST-YOUR MIND FIRST-

A) PANTALOONS [ 16 RESPONDENTS ]

B) GLOBUS [ 30 RESPONDENTS ]


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C) MAX [ 44 RESPONDENTS ]

D) WESTSIDE [ 10 RESPONDENTS ]

16%

30%44%

10%

Respondents

PANTALOONSGLOBUSMAXWESTSIDE


i.e. 44 out of 100 prefer MAX for shopping.

It means max retail targeting to the middle class customers.

AGE WISE DISTRIBUTIONAGE WISE DISTRIBUTION

A) <20 [ 12 RESPONDENTS ]

B) 20-29 [ 45 RESPONDENTS ]

C) 30-39 [25 RESPONDENTS ]

D) >40 [18 RESPONDENTS]ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOWABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

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12%

45%

25%

18%

Respondents

< 2020-2930-39>40


i.e. 45 out of 100 are young age people.

It means maximum no of customers belongs to young age group.

GENDER WISE DISTRIBUTIONGENDER WISE DISTRIBUTION

E) MALE [ 58 RESPONDENTS ]

F) FEMALE [ 42 RESPONDENTS ]


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58%

42%

Respondents

MALEFEMALE


i.e. 58 out of 100 are males.

It means maximum no of customers are male in malls due to family responsibility.

NO. OF FAMILY MEMBER WISE DISTRIBUTIONNO. OF FAMILY MEMBER WISE DISTRIBUTION

A) <=2 [ 08 RESPONDENTS ]

B) 3-4 [ 54 RESPONDENTS ]

C) >4 [ 38 RESPONDENTS ]


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8%

54%

38%

Respondents

<=23 to 4>4


i.e. 54 out of 100 having 3-4 members in their family.

It means maximum no of customers having nucleur family.

EDUCATION WISE DISTRIBUTIONEDUCATION WISE DISTRIBUTION

A) HIGH SCHOOL [ 08 RESPONDENTS]

B) LESS THAN GRADUATION [ 12 RESPONDENTS ]

B) GRADUATION [ 32 RESPONDENTS ]

C) POST GRADUATION [ 32 RESPONDENTS ]ABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOWABHISHEK PANDEY, SHRI RAMSWAROOP COLLEGE OF ENGG & MGMT, LUCKNOW

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D) PROFESIONAL QUALIFICATION [ 16 RESPONDENTS ]

8%

12%

32%

32%

16%

Respondents

HIGH SCHOOLLESS THAN GRADUATIONGRADUATIONPOST GRADUATIONPROFESSIONAL QUALIFICATON


i.e. 32 out of 100 are graduates and 32 out of 100 are post graduate.

It means maximum no of customers are educated and aware about retail store.

OCCUPATION WISE DISTRIBUTIONOCCUPATION WISE DISTRIBUTION

A) STUDENT [ 33 RESPONDENTS ]

B) GOV. SERVICE [ 8 RESPONDENTS ]

C) PVT. EMPLOYEE [ 40 RESPONDENTS ]

D) SELF EMPLOYEE [ 12 RESPONDENTS ]

E) HOUSE WIFE [ 07 RESPONDENTS]


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33%

8%40%

12% 7%

Respondents

STUDENTSGOV. SERVICEPVT. EMPLOYEESELF EMPLOYEEHOUSE WIFE


i.e. 40 out of 100 are Pvt. Employee.

It means maximum no of customers are self dependent.

INCOME WISE DISTRIBUTIONINCOME WISE DISTRIBUTION

A) LESS THAN Rs 20,000 [ 28 RESPONDENTS ]

B) BETWEEN Rs 30,000 TO 40,000 [ 48 RESPONDENTS ]

C) BETWEEN Rs 40,001 TO 50,000 [ 20 RESPONDENTS ]

D) MORE THAN Rs 50,000 [ 12 RESPONDENTS ]


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Respndents

LESS THAN Rs. 20,000BETWEEN Rs. 30,000 T0 40,000BETWEEN Rs. 40,000 TO 50,000MORE THAN Rs. 50,000


i.e. 48 out of 100 are having monthly income between Rs 30,000 to 40,000.

It means maximum no of customers are belonging to upper middle class.


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1. Maximum no of middle class customers come to max for shopping.

2. Max retail targeting to the middle class customers.

3. Maximum no of customers belongs to young age group.

4. Maximum no of customers are male in malls due to family responsibility.


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5. It means maximum no of customers having nucleur family.

6. Maximum no of customers are educated and aware about retail store.

7. Maximum no of customers are self dependent.

8. Maximum no of customers are belonging to upper middle class.

9. Maximum no of customer are preferred Shopping Malls for purchasing.

10. Maximum no of customers are family conscious for visiting retail store.

11. Maximum no of customers are time conscious and desire for many brand under

one roof.

12. Maximum no of customers do not compromise with their choice.

13. Maximum no of customers are price conscious so maximum customers belongs to

middle class.

14. Maximum no of customers did not compromise quality with discount and offers.

15. Maximum respondents are attracted towards the Store due to this ranking-

FASHION BRAND PRICE RANGE, SIZE

16. Maximum no of customers are visiting the store monthly.

17. Maximum no of customers prefer middle class shopping.

18. Maximum no of customers are agree that price of products are equal to the other

market rate.

19. Maximum no of customers are know about the max store by


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20. Most of the customers know about the MAX retail through other people

reference.

LIMITATIONSLIMITATIONS

Every report has its pros and cons so mine also have some limitations.

They can be pointed as:


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1) Conclusions are for Lucknow City only.

2) Use of secondary data for analysis.

3) Only Zee Mall was present for collection of data so it was tough to collect

more respondent.

4) Respondents were not keen to give the answers of questionnaire.

CONCLUSIONCONCLUSION

The past 4-5 years have seen increasing activity in retailing. And, various business

houses have already planned for few investments in the coming 2-3 years. And

though the retailers will have to face increasingly demanding customers, and


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intensely competitive rivals, more investments will keep flow in. And the share of

organized sector will grow rapidly. retailing in India is surely poised for a takeoff

and will provide many opportunities both to existing players as well as new

entrants.. The country is witnessing a period of boom in retail trade, mainly on

account of a gradual increase in the disposable incomes of the middle and upper-

middle class households. More and more corporate houses including large real

estate companies are coming into the retail business, directly or indirectly, in the

form of mall and shopping center builders and managers. New formats like super

markets and large discount and department stores have started influencing the

traditional looks of bookstores, furnishing stores and chemist shops. The retail

revolution, apart from bringing in sweeping, positive changes in the quality of life in

the metros and bigger towns, is also bringing in slow changes in lifestyle in the

smaller towns of India. Increase in literacy, exposure to media, greater availability

and penetration of a variety of consumer goods into the interiors of the country,

have all resulted in narrowing down the spending differences between the

consumers of larger metros and those of smaller towns.

Lastly I want to conclude my project in some points-

The customers are attracting towards shopping malls & retail outlets.


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The shopping malls & retail outlets are targeting to middle class customers

because the purchasing power of this class are rapidly growing as well as

the class is also growing.

The young generation is fashion & show-off conscious so retail outlets are

mainly focused on them.

Most of the family wants to purchase from big showrooms and malls

because there are no bargaining system so the have a trust that there is no

cheating.

The main strength of most of the retail outlets are providing attractive offers

to attract customers.

Big retail stores are running customer loyalty programmes which has

increased profits and no. of customers.


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RECOMMENDATIONSRECOMMENDATIONS

My recommendations on the basis of the are:

Grant industry status to retail


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Retail stores should use an area that is easily approachable.

Invest in supply chain infrastructure

Ease distribution – infrastructure creation

It should take steps to convert the footfall in the Retail Stores into sales by offering,

“Catchy & Intelligent schemes”.

The attitude of sales force must be helping & communication in formal way.

Proper signage’s should be used in retail store

Exchange Policies of retail store should be properly communicated to customers

during Sale.

Men’s Accessories like Sunglasses and Bracelets can be add up in Accessories

section.

To solve the problem of alteration on Sunday, Company can provide the home

delivery of Altered merchandise.

Sizes of the merchandising should be standard.

Sizes of merchandising should be easily visible or one rack can be made for each

size of different style.

BibliographyBibliography

BOOKS:-


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Marketing Management. ----Kotler & Keller

Marketing Management in Indian Perspective

----V. S. Ramaswamy & S. Namakumari

Research methodology ---C.R. Kothari

Quantitative Methods ---B. M. Aggarwal.

Retail management ---Levy & Weitzs

MAGZINES:-

Business worlds

Indian retail

Economics of India

India today

WEBSITES:-


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www.goggle.com

www.tataretail.com

www.retailindia.net

www.retailyatra.com

www.retailbiz.com

www.aboutus.com

www.businessworld.in


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http://www.businessworld.in/

http://www.aboutus.com/

http://www.retailbiz.com/

http://www.retailyatra.com/

http://www.retailindia.net/

http://www.tataretail.com/

http://www.goggle.com/

GENERAL QUESTIONNAIR

NAME:-………………… DATE:-……/……/2008 PLACE:-……………….

1) Which type of place do you visit frequently for your shopping needs?a) Shopping mall b) Upstreet market


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c) Local markets

2) You prefer to go in Store with –a) Family b) Spousec) Friends d) Others

3) What influences your buying selections? a) Availability of range b) Reasonable pricec) Availability of size d) Fashion appeale) Customer service f) Brand name

4) From where would you prefer to buy products?a) Single brand store b) Multi brand storec) Factory outlets d) Local Big Retail Store

5) How often do you ask for assistance from store staff in selecting your purchase?a) Almost always b) Frequentlyc) Sometimes d) Never

6) What do you look for in a product during your purchase?a) Fashion b) Comfort c) Price d) Colors Available

7) When do you prefer to shop Most in Store?a) During Sale b) During Fresh season stockc) During Discount d) When required

8) How frequently you visit the Store?a) <1 month b) 1-3 monthc) 1-6 month d) 1 year

9) What is average money you spend on Shopping?a) <= 999/- b) 1000-1999c) 2000-2999 d) >3000

(If not customer of Max leave question 10-13).

10) How do you rate the pricing of product at Max?a) Expensive b) Competitivec) Affordable d) Reasonable

11) How did you come to know about Max?a) Newspaper b) Radio advertisementc) Leaflet d) SMSe) Word of Mouth f) others specify………

12) What more facility would you like to get at Max?a) Membership Card b) Discount Mailers


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c) Free Parking offers d) Lucky draw offer

13) Which Category of Product do you buy most at Max ?a) Men’s wear b) Women’s wear c) Ethnic weard) Kids wear e) Foot wear f) Accessories

14) When you think of Shopping which Store comes in your mind first-a) Pantaloons b) Globusc) MAX d) Westside

15) Any suggestion …………………………………………………………..………………………………………………………………………………...………………………………………………………………………………...………………………………………………………………………………...

Age group <20 20-24 25-29 30-34 35-39 >40Gender Male FemaleNo of FamilyFamilyMembers

<=2 3-4 >4

Qualification

HighSchool

DiplomaOr pre-graduate

Graduate Post-graduate

Professional course

Occupation Student

Gov.Service

Pvt.Employee

Self Employed

House wife Retired

Location Gomtinagar

Mahanagar

Aliganj Hazratganj

Indiranagar

Niralanagar

other

Household Income(per month)

Less Than20,000

30,000-40,000

40,001-50,000

More then50,000

THANK YOU


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to Study the Consumer Behaviour in Max Lifestle Retail Lucknow

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Transcript of to Study the Consumer Behaviour in Max Lifestle Retail Lucknow