Consumer perception of local store and supermarket in Indian retail industry

By

ACKNOWLEDGEMENTS

My thanks go out to all who have helped me complete this study and with whom this project may have not been possible. In particular, my gratitude goes out to friends, facilitator and family for extensive and helpful comments on early drafts. I am also deeply indebted to the authors who have shared my interest and preceded me. Their works provided me with a host of information to learn from and build upon, also served as examples to emulate.

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DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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TABLE OF CONTENTS

ACKNOWLEDGEMENTSii

DECLARATIONiii

CHAPTER 1: INTRODUCTION1

Background1

Significance of the study1

Theoretical framework3

Rationale (foundation)4

Research questions5

CHAPTER 2: LITERATURE REVIEW6

Introduction6

Retailing in India8

Differentiating local stores and supermarket10

Changing scenarios15

Moderator Variables and Shopping Motivations16

Strength of supermarket (price promotion, bulk buying)17

Perceived Behavioural Control20

Local stores and supermarkets21

Effects on local stores21

CHAPTER 3: METHODOLOGY23

Research Design23

Research Process23

Instrument24

Data Collection Method24

Likert Scale24

Interview Questionnaire25

Research Philosophy25

REFERENCES27

APPENDICES31

Questionnaire31

CHAPTER 1: INTRODUCTION

Background

Indian retail sector is expecting a gross of $427 billion in 2010 and $635 billion in 2015 (Monroe 2010, 209). India is, in fact, one of the fastest growing economies worldwide. India GDP gross domestic product (GDP) is growing at 7.5% each year, and the potential for more growth is expected to be 12% per year over the next decade. The spatial econometric models to evaluate the effects of supermarket and local stores on changes in retail store sales. Supermarkets can conduct a sensitivity analysis at the individual-attribute level to see what would be the effect of improving a specific attribute. They may calculate the effect on their market and revenue shares when introducing a service (Monroe 2010, 209).

The offering of premium service from local store may help in differentiating and may draw customers to their stores. Similarly, other supermarket chains followed Lob laws and created their own premium services. Lob laws which mean great food, great food franchise, select the store and city as well (Landler 2008, 66). During the last decade, premium services have grown and penetrated almost all the product category in the Indian market (McEnally 2008, 75).

Significance of the study

Supermarkets through premium services can compete with those weak national, regional, and local stores having variable quality and service. While a premium service of supermarket can compete with local stores services. Supermarkets can target conscious consumers with premium service. This research contributes significantly to existing consumer's behaviour literature, providing a deep understanding of the psyche of consumers in India relation to the malls. This study aims to extend knowledge of the consumer profiles and segmentation of non-Western context, especially India, so that no research has carried out. India is attracting considerable international interest and business investment (Wesley 2007, 24).

From a management perspective, understanding the buying behaviour of Indian consumers shopping preferences ...