Introduction

Indian dietary patterns are getting increasingly westernized and children particularly consume
fast foods and other non-traditional foods in large quantities (Pingali and Khwaja, 2004;
Pingali, 2007; Kaushik et al., 2011). These foods are heavily promoted to children through
Indian retail stores (Soni, 2013). A large number of food promotional strategies (FPS) are
used in retail stores to persuade children (Gelperowic and Beharrell, 1994; Hastings et al.,
2003; Chapman et al., 2006; Harris et al., 2009). These include appealing packaging,
increasing accessibility of foods – keeping foods at reachable shelf locations, availability of
foods in different tastes/flavours, colours, shapes/sizes, varieties/brands, etc., offering child
incentives/freebies/premiums/collectives along with foods and encouraging sales personnel to
be helpful and friendly to children in stores. Children also play an important role in food
shopping as they accompany parents on food shopping trips. They are found to assist parents
in food shopping, initiate purchases, make subtle/active influence attempts on parents or
make direct purchases. They are seen helping parents in locating foods in retail store, pushing
shopping carts, placing items on check-in/check-out counters and filling and carrying
shopping bags (Norgaard et al., 2007). They sometimes buy products for own consumption or
act as purchase agents for the entire family. Still, few studies have investigated the nature of
FPS used by marketers to promote foods to children (Mehta et al., 2012) and some studies
have investigated the influence of food promotions (individual elements) on food preferences
of children (Gelperowic and Beharrell, 1994; Chapman et al., 2006). However, no study to
the best of our knowledge has explored the dimensionality of food shopping behaviour of
children in retail stores and the effectiveness of various FPS on food shopping behaviour of
children. An attempt has been made in this direction through the present study.

MEANING OF RETAIL

Retail comes from the French word retailler, which refers to "cutting off, clip and divide" in
terms of tailoring (1365). It first was recorded as a noun with the meaning of a "sale in small
quantities" in 1433 (French). Its literal meaning for retail was to "cut off, shred, paring”.
Retail is the final stage of any economic activity. By virtue of this fact, retail occupies an
important place in the world economy. According to Philip Kotler, Retailing includes all the
activities involved in selling goods or services to the final consumers for personal, non-
business use. A retailer or retail store is any business enterprise whose sale volume comes

1
primarily from retailing. These are the final business entities in a distribution channel that
links manufacturers to customers. Manufacturers typically make products and sell them to
retailers or wholesalers. Wholesalers resell these products to the retailers and finally, retailers
resell these products to the ultimate consumers.

Any organization selling to final consumers whether it is a manufacturer, wholesaler or

retailer-is doing retailing. It does not matter how the goods or services are sold (by person,
mail, telephone, vending machine, or internet or where they are sold-in a store, on the street,
or in the consumer’s home). A Retailer thus, provides value creating functions like
assortment of products and services to the consumers, breaking bulk, holding inventory and
provides services to consumers, manufacturers and wholesalers.

Retailing broadly involves:

1. Understanding the consumers’ needs

2. Developing good merchandise assortment and

3. Display the merchandise in an effective manner so that shoppers find it easy and attractive
to buy.

Retailing thus, may be understood as the final step in the distribution of merchandise, for
consumption by the end consumers. Put simply, any firm that sells products to the final
consumer is performing the function of retailing. It thus consists of all activities involved in
the marketing of goods and services directly to the consumers, for their personal, family
orhousehold use. In an age where customer is the king and marketers are focusing on
customer delight, retail may be redefined as the first point of customer contact.

The distribution of finished products begins with the producer and ends at the ultimate
consumer. Between two of them there is a middleman – the retailer. Retailing is the set of
business activities that adds value to the product and services sold to the consumers for their
personal or family use. Often retailing is being thought of as the sale of products in the stores,
but retailing also involves the sales of services: overnight lodging in a hotel, a haircut, a car
rental, or home delivery of Pizza. Retailing encompasses selling through the mail, the
internet, and door-to-door visits – any channel that could be used to approach the consumer.
Retailing is responsible for matching individual demands of consumer with supplies of all the
manufacturers.

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Retailing has become such an intrinsic part of our everyday lives that it is often taken for
granted. The nations that have enjoyed the greatest economic and social progress have been
those with a strong retail sector. The world over retail business is dominated by small family
run chains and regionally targeted stores. Gradually more and more markets in the Western
world are being taken over by billion-dollar multinational conglomerates, such as Wal-Mart,
McDonald’s, Marks and Spencers, etc. The larger retailers have set up huge
supply/distribution chains, inventory management systems, financing pacts, and wide scale
marketing plans which have allowed them to provide better services at competitive prices by
achieving economies of scale.

Retail Concept

The retailing concept is essentially a customer oriented, company-wide approach to

developing and implementing a marketing strategy. It provides guidelines which must be
followed by all retailers irrespective of their size, channel design, and medium of selling. The
retailing concept covers the following four broad areas:

1. Customer orientation

The retailer makes a careful study of the needs of the customer and attempts to satisfy those
needs.

2. Goal orientation

The retailer has clear cut goals and devises strategies to achieve those goals.

3. Value driven approach

The retailer offers good value to the customer with merchandise keeping the price and quality
appropriate for the target market.

4. Coordinated effort

Every activity of the firm is aligned to the goal and is designed to maximize its efficiency and
deliver value to the customer.

Characteristics of Retailing

Retailing can be distinguished in various ways from other business activities. It has following
characteristics:

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  There is a direct end-user interaction in retailing.

 It is the only point in the value chain to provide platform for promotions.

 Sales at the retail level are generally in small unit sizes.

 Location is a critical factor in retail business.

 In most retail business, services are as important at core products.

 There are a larger number of retail units compared to other members of the value
chain. This occurs primarily to meet the requirements of geographical coverage and
population density.

A retailer is a person, agent, agency, company, or organization, which is instrumental in

reaching the goods, merchandise, or services to the ultimate consumer. They are the final
business in a distribution channel that links manufacturer to consumers. Retailers perform
specific activities such as anticipating consumers’ wants, developing assortments of products,
acquiring market information, and financing. A retailer performs certain value creating
functions as:

1. Providing an assortment of products and services

All retailers offer assortment of products, but they specialize in the assortments they offer.
Supermarkets provide assortments of food, health and beauty care, and household products,
while Abercrombie & Fitch provides assortments of clothing and accessories. Supermarkets
typically carry 20,000 to 30,000 different items made by over 500 companies. Offering an
assortment enables their customers choose from a wide selection of brands, designs, sizes,
colors, and prices at one location.

2. Breaking Bulk

Breaking bulk means physical repackaging of the products by retailers in small unit sizes
according to customers’ convenience and stocking requirements. Normally retailers receive
large quantities of sacks and cases of merchandise from suppliers to reduce their
transportation costs. In order to meet customer requirements retailers have to break or arrange
the bulk into convenient units. The entire function adds value to the offerings not only for the
end consumers but also for the suppliers in the value chain.

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3. Holding Inventory

To ensure the regular availability of their offerings, retailers maintain appropriate levels of
inventory. Consumers normally depend on the retailers directly to replenish their stock at
home. Therefore, retailers on periodic basis, maintain the required level of inventory to meet
the regular or seasonal fluctuations in demand. They need to maintain equilibrium between
the range, or variety carried and sales which it gives rise to.

4. Extending services

Retailers provide multiple services to immediate customers and other members of value
chain. They offer credit so customer can have a product now and pay for it later. They display
products so consumers can see and test them before buying. Some retailers have sales people
in the store or use their websites to answer questions and provide additional information
about products.

1.2 EVOLUTION OF RETAIL IN INDIA

The origin of retailing in India can be traced back to the emergence of Kirana stores and
mom-and-pop stores. These stores used to cater to the local people. Eventually the
government supported the rural retail and many indigenous franchise stores came up with the
help of Khadi & Village Industries Commission. The economy began to open up in the 1980s
resulting in the change of retailing. The first few companies to come up with retail chains
were in textile sector, for example, Bombay Dyeing, S Kumar's, Raymonds, etc. Later Titan
launched retail showrooms in the organized retail sector. With the passage of time new
entrants moved on from manufacturing to pure retailing. The evolution of retailing in India
can be better understood as:

Early Eighties

 'Retailing' in India was synonymous with peddlers, vegetable vendors, neighborhood

kirana stores (small grocery stores) or sole clothing and consumer durable stores in a
nearby town.
 These retailers operated in a highly unstructured and fragmented market. Very few
retailers operated in more than one city.

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Before 1990

 Organized retailing in India was led by few manufacturer owned retail outlets, mainly
from the textile industry, Ex: Bombay Dyeing, Raymonds, S Kumar's, and Grasim.
 Later, Titan successfully created an organized retailing concept and established a
series of showrooms for its premium watches

Nineties:

 Liberalization of the Indian economy led to the dilution of stringent restrictions.

 Entry of few multi-national players like Nanz into the Indian market.

 Changing profile of the Indian consumers,

 Increasing wages of the employees working in Greenfield sectors with higher

purchasing power.

 Setting up of retail chains by domestic retailers like Cotton World (Mumbai), Nirula's
(Delhi) and the Viveks and Nilgiris in the South.

 The latter half of the 1990s saw a fresh wave of entrants with a shift from
Manufactures to Pure Retailers. For e.g. Food World, Subhiksha and Nilgiris in food
and FMCG; Planet M and Music World in music; Crossword and Fountainhead in
books.

 1995 onwards saw an emergence of shopping centers, mainly in urban areas, with
facilities like car parking targeted to provide a complete destination experience for all
segments of society

 Emergence of hyper and super markets trying to provide customer with 3 V’s - Value,
Variety and Volume.

The concept of retail as entertainment came to India with the advent of Shopping malls.
Shopping malls emerged in the urban areas giving a world-class experience to the customers.
Eventually hypermarkets and supermarkets emerged. The evolution of the sector includes the
continuous improvement in the supply chain management, distribution channels, technology,
back-end operations, etc. this would finally lead to more of consolidation, mergers and
acquisitions and huge investments.

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ORGANIZED V/S UNORGANIZED RETAILING

1.3.1 Unorganized retailing/traditional retailing

According to the National Accounts statistics of India ‘the unorganized sector includes units
whose activity is not regulated by any statue or legal provision, and/or those, which do not
maintain regular accounts. In the context of retail sector, it could therefore be said to cover
those forms of trade which sell an assortment of products and services ranging from fruits
and vegetables to shoe repair. These products or services may be sold or offered out of a
fixed or mobile location and the number of people employed could range between 10-20
people. Thus, the traditional formats of low-cost retailing, for example, the neighborhood
baniya, the local kirana shop, owner manned general stores, provision stores, flea (Thadi)
markets, hand cart and pavement vendors, the vegetable, fruit vendor, Mom and Pop Stores,
local sabji mandi, weekly haats, general readymade garment shop or a footwear shop, general
electronic shop etc. the, the paanwala, the cobbler, etc. would be termed as the unorganized
sector.

1.3.2 Organized or modern retailing

Organized retailing refers to trading activities undertaken by licensed retailers, that is, those
who are registered for sales tax, income tax, etc. These include the corporate-backed
hypermarkets and retail chains, departmental store, discount stores, drug stores, factory
outlets, and also the privately owned large retail businesses.

The organized retail stores are characterized by professionally managed stores or large chain
of stores, providing goods and services that appeal to customers, in an ambience that is
encouraging for shopping and agreeable to customers. For example: Vishal Mega Mart, Big
Bazaar, Wills Lifestyle, Shoppers Stop, Reliance Trends, Spencers, Reebok, Nike, Catmos,
Lilliput, McDonald’s, Pizza Hut, Barista, Cafe Coffee Day, Koutons, Cotton County, Peter
England, Titan, Raymonds, Sony, Samsung, Next, LG, Apollo Pharmacy.

OWNERSHIP BASED RETAILERS–

Depending on the ownership pattern, stores can be divided into six categories as:

1. Independent Stores

i. Owned by a single retailer-

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ii. Low entry barriers

iii. Low initial investments

iv. Simple licensing procedures

v. Owner holds the right to decisions

vi. Can act as specialized stores

BUSINESS MODELS IN RETAIL

India is a country dominated by local and traditional retailers and business models specific to
Indian context are bound to emerge. This section discusses some of the retail business models
that have emerged and which are peculiar to the Indian landscape. These are as:

STORE BASED RETAILERS-

These operate at fixed point of sale locations. Their stores are located and designed to attract
a high volume of walk-in customers. In general, store based retailers offer a wide variety of
merchandise and use mass media advertising to attract customers. These can be further
classified on the basis of various parameters like:

I. Ownership

II. Strategy-mix

III. Service vs. Goods retail mix.

I. OWNERSHIP BASED RETAILERS–

Depending on the ownership pattern, stores can be divided into six categories

2. Chain stores

i. Have two or more retail outlets

ii. Common ownership & control

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iii. Centralized purchase & merchandising.

iv. Sell similar lines of merchandise

v. Bulk purchaser, high bargaining power

vi. E.g.: Bata, Liberty, Kodak, Archies, Titan, Raymonds, LG, McDonald’s, Barista etc

3. Franchise stores

i. Store based on contractual agreement between a Franchiser (manufacturer) & a Franchisee,

which allows the franchisee to conduct a given form of business under an established name &
according to a given pattern of business.

ii. Franchisee gets well known brands.

iii. Exclusive rights to sell.

iv. Benefit of the nationwide promotional activities.

v. Exposure to standard operating procedures.

vi. E.g.- Aptech, McDonald’s, Monte Carlo, Koutons, Pizza-Hut,etc.

4. Leased Departmental store

i. A department in a retail store that is rented to an outside party.

ii. The lessee is accountable for all activities of the leased department.

iii. Adds variety to the merchandise offered by the store.

iv. No cannibalizing of sales of existing product lines of the stores.

v. Reduced cost of establishment.

vi. Increased customer traffic.

2. Chain stores

i. Have two or more retail outlets

ii. Common ownership & control

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iii. Centralized purchase & merchandising.

iv. Sell similar lines of merchandise

v. Bulk purchaser, high bargaining power

vi. E.g.: Bata, Liberty, Kodak, Archies, Titan, Raymonds, LG, McDonald’s, Barista etc

3. Franchise stores

i. Store based on contractual agreement between a Franchiser (manufacturer) & a Franchisee,

which allows the franchisee to conduct a given form of business under an established name &
according to a given pattern of business.

ii. Franchisee gets well known brands.

iii. Exclusive rights to sell.

iv. Benefit of the nationwide promotional activities.

v. Exposure to standard operating procedures.

vi. E.g.- Aptech, McDonald’s, Monte Carlo, Koutons, Pizza-Hut,etc.

4. Leased Departmental store

i. A department in a retail store that is rented to an outside party.

ii. The lessee is accountable for all activities of the leased department.

iii. Adds variety to the merchandise offered by the store.

iv. No cannibalizing of sales of existing product lines of the stores.

v. Reduced cost of establishment.

vi. Increased customer traffic.

5. Vertical Marketing system

i. A distribution system in which the producers, wholesalers, & retailers act in a unified
manner to facilitate the smooth flow of goods & services to the end-user.

ii. One channel member owns the other or has contracts with them.

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6. Consumer Cooperatives

i. Retail operations owned & managed by its customer members.

ii. A group of customers invest in the retail operations in return of stock certificates, which
entitle them to a share in the profits of the retail store

II. STRATEGY-MIX BASED RETAILERS –

Depending on the strategic mix retailers adopt, they can be classified into two groups:

A. Food oriented Retailers-

1. Convenience stores-

i. Small stores located near residential areas.

ii. Open long hours, seven days a week, & carry a variety of products with limited assortment
of merchandise.

iii. Operate in 3000-8000 sq.ft. area.

2. Conventional supermarkets-

i. Similar to departmental stores.

ii. Focus on food & household maintenance products.

iii. Self-service operations

iv. Variety of merchandise with deep assortments.

3. Food-based supermarket-

i. Larger & more diversified than a conventional supermarket.

ii. Operates in 25,000-50,000 sq.ft. area.

iii. Range includes- grocery items, garden supplies, flowers, & small household appliances.

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4. Combination Stores-

i. A Blend of a supermarket & general merchandise (>40%) store.

ii. Maintains identity of both food store & drug store

iii. One stop shopping experience.

iv. Operate in 30,000-100,000 sq.ft. area.

5. Box (Limited-line) store-

i. Food based discount store that concentrates on a small selection of goods.

ii. Limited- shopping hours, service & stocks.

iii. Refrigerated perishable goods are not available.

iv. Prices are displayed on the shelf/overhead signs. Priced 20-30% below market price.

v. Self-service.

6. Warehouse stores-

i. Discount food retailers, offer low price deals.

ii. Average size of 100,000 sq. ft.

iii. Merchandise is displayed in cut boxes or shipping pallets & services are limited.

iv. Lack consistency of products available as they warehouse retailers buy goods only when a
manufacturer or a wholesaler offers deep price or quantity

B. General Merchandise retailers-

1. Variety store-

i. Offer deep assortment of inexpensive & popular goods like stationary, gift items, woman's
accessories, house wares etc.

ii. Also called as 5 and 10-cent stores.

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2. Department store-

i. Large retail units offering wide variety and a deep assortment of goods & services.

ii. Separate depts. for separate types of merchandise

iii. One-stop shopping experience.

iv. Offers clothing, shoes, cosmetics, gifts, luggage, jewelry & other household items.

v. E.g.- Shopper’s stop, Westside, Lifestyle & Pantaloons etc.

According to U.S. Bureau of Census, a store should specify the following four criteria to be
considered as department store:

1) A department store should employ a minimum of fifty people.

2) The store should generate at least 20 percent of its total revenue from the sale of apparel
and soft goods.

3) The store should have the following product lines: furniture and home furnishings;
appliances, radio and T.V. sets; a general line of apparel for the family’ household products
and dry goods.

4) The annual sales of the department store should be under $10 million, where no single
product line should contribute more than 80 percent of the total sales.

3. Off-price Retailer-

i. Offer an inconsistent assortment of branded fashion-oriented soft goods at low prices.

ii. Purchase goods from manufacturers who have excess inventory.

iii. Purchase in bulk & sell at off-prices.

4. Membership club-

i. Customer has to pay annual fee to become the members of the club.

ii. Membership allows them to purchase goods at low price.

iii. Purchases directly from manufacturers.

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5. Flea Market (Outdoor Bazaar)-

i. An outdoor or indoor facility that rent out space to vendors who offer merchandise, services
& other goods.

ii. Many retail vendors offering a variety of products at discount prices at places where there
is high concentration of people.

III. SERVICES Vs GOODS RETAIL MIX BASED

Service Retailing-

The retail entities primarily selling services rather than products are in retailing of services.
Services also play a significance role in the retail merchandise mix of the retail organization
selling merchandise as a core product. The main differences between retailing of products
and retailing of services are on account of the intangibility, simultaneous production and
consumption, perishability and inconsistency.

i. Sale or rental of an intangible activity, which usually can not be stored or transported, but
satisfies the needs of the user.

ii. Service can be along with goods or pure service.

iii. E.g. - Hospitals, banks, beauty saloons, entertainment firms etc.

NON-STORE RETAILERS

A. Traditional-

1. Direct Marketing-

i. Customer is informed about the product through non personal medias like TV, radio,
magazine, newspaper, internet etc.

ii. The customer places an order through mail or phone.

iii. Less investment as compared to store based retailing.

iv. Wide geographic area is covered.

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2. Direct selling-

i. Door-to-door selling

ii. Person-to-person selling (Eureka Forbes)

iii. Multilevel (network) marketing (Amway, Japan Life)

3. Vending machines-

i. Involves coin or card operated dispensing of goods & services.

ii. Round the clock sales

iii. Machines are placed at the most convenient places for the customers

iv. Soft drinks vending machines, ATMs,coffee vending machines etc.

4. Catalog marketing-

i. Sales made through catalogs mailed to a select list of customers or made available in a
store.

ii. Delivery or order can be through mail, express service, and parcel post.

5. Tele-Marketing-

i. Telephone as a media for sales.

ii. Informing customers about new merchandise & upcoming sales events.

6. TV home shopping-

i. Shop – by- TV, demonstration of the product, its features, benefits etc (Asian sky shop,
tele-shopping etc.)

B. Nontraditional –

1. e-tailing or World Wide Web-

i. Internet as a medium for promoting their products.

ii. People access information about products using the web address of the retailer’s
homepage.

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iii. Retailers’ website allows customers to order with a click of mouse.

2. Video kiosk-

Freestanding interactive computer terminal that displays product & related information on a
video screen, are often touch screen.

3. Video catalog-

A retail catalog on a CD-ROM disk, to be viewed on a computer monitor.

Some other types of Retail business models

Mom-and-pop stores: These are generally family-owned businesses catering to small

sections of society. They are small, individually run and handled retail outlets.

Category Specialists / killers: These are big box discount stores that offer a narrow but deep
assortment of merchandise. These retailers are basically discount specialty stores. By offering
a complete assortment at low prices, category specialists can “kill” a category of merchandise
for other retailers and thus are frequently called category killers.

For example, Office Depot, electronics (Best Buy) and sporting goods (Sport Authority), The
Home Store, Landmark, Music World etc. are some of the category s

Malls: These are the largest form of retail formats. They provide an ideal shopping
experience by providing a mix of all kinds of products and services, food and entertainment
under one roof. Examples are Sahara Mall, TDI Mall, MGF Metropolitan, Great India Place,
Pacific Mall, Galaxy Mall, Shipra Mall etc. in Delhi and NCR regions.

Specialty Stores: The retail chains, which deal in specific categories and provide deep
assortment in them are specialty stores. Examples are RPG's Music World, Mumbai's
bookstore Crossword, etc.

Discount stores: These are the stores or factory outlets that provide discount on the MRP
items. They focus on mass selling and reaching economies of scale or selling the stock left
after the season is over.

Supermarkets: A predominantly self-service format offering a full line of groceries, meat,

and produce with limited sales of non-food items, such as health and beauty aids and general
merchandise. Perishables like meat and produce account for 44 percent of supermarket sales

16
and typically have higher margins that packaged goods. It operates between 5,000 to 30,000
square feet of total selling area. These stores typically carry approximately 30,000 SKUs. The
largest supermarket chains of US are Kroger, Albertson’s, Safeway, Ahold USA, and Publix.
Although, there is no standardization on the parameters of what makes a supermarket in
India, it is one of the fastest growing business formats in the country. Nilgiri’s, Foodworld,
Subhiksha, Food Bazaar and Vitan are some of the Supermarkets in India.

Supercenters: The fastest growing retail category, are large stores (150,000-220,000 Sq. ft.)
that combine a supermarket with a full-line discount store. By offering broad assortments of
grocery and general merchandise products under one roof, supercenters provide a one-stop
shopping experience. Supercenters offer larger percentage of non-food items and focus more
on dry groceries such as breakfast cereal and canned goods, instead of fresh items. Wal-Mart,
Meijer, Kmart, Fred Meyer (a division of Kroger) etc. are some of the major supercenters of
the world.

Hypermarkets: A very large retail unit that offers products at a low price. It is a combination
of a general merchandise store and the supermarket. These are characterized by large store
size, low operating costs and margins, low prices and comprehensive range of merchandise.
Hypermarket operates in over 50,000 sq. ft. area and offers over 50,000 different items for
sale. Hypermarkets carry a larger proportion of food items than supercenters with a greater
emphasis on perishables-produce, meat, fish and bakery. They offer an expanded selection of
non-food items, including health and beauty products and general merchandise at low prices.
Typically between a third to two-thirds of the mix in a hypermarket is from “food”. These are
generally large self-service outlets, offering a variety of categories with deep assortments.
Hypermarkets generally, own spacious parking facility exclusively for their customers and
employees. Some popular hypermarkets in Indian market include Pantaloon’s Big Bazaar,
Spencer’s, FoodWorld, Vishal Mega Mart etc.

Full-Line Discount Stores: these are retailers that offer a broad variety of merchandise,
limited service and low prices. Discount stores offer both private labels and national brands,
but these brands are typically less fashion oriented than the brands in the department stores.
The big three full-line discount store chains are Wal-Mart, Kmart, and Target, which account
for 84 percent of the sales in this retail format.

Drugstores: These are specialty stores that concentrate on health and personal grooming
merchandise. Pharmaceuticals often represent over 50 percent of drugstore sales and even

17
greater percentage of their profits. The largest drugstore chains in the United States are
Walgreen, CVS, Rite Aid and Albertson’s.

Extreme Value Retailers: These are small, full-line discount stores that offer a limited
merchandise assortment at very low prices. The largest extreme value retailers are Dollar
General and Family Dollar Stores.

Franchising: It is a contractual agreement between a franchisor and a franchisee that allows

the franchisee to operate a retail outlet using a name and format developed and supported by
the franchisor. In a franchise contract, the franchisee pays a lump sum plus a royalty on all
sales for the right to operate a store in a specific location. The franchisee also agrees to
operate the outlet in accordance with procedures prescribed by the franchisor. The franchisor
provides assistance in locating and building the store, developing the products or services
sold, training managers, and advertising. To maintain each franchisee’s reputation, the
franchisor also makes sure that all outlets provide the same quality of products and services.
Some of the retail stores using franchise model are Haldiram, Baskin Robins, Domino’s
Pizza, D’dmas, Lilliput, Ebony, Air Hostess Academy, VLCC etc.

RETAIL INDUSTRY IN INDIA

The Indian retail industry is the fifth largest in the world. Comprising of organized and
unorganized sectors, India retail industry is one of the fastest growing industries in India,
especially over the last few years. Though initially, the retail industry in India was mostly
unorganized, however with the change of tastes and preferences of the consumers, the
industry is getting more popular these days and getting organized as well. With growing
market demand, the industry is expected to grow at a pace of 25-30% annually. The India
retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000 crore by
the year 2010.

As per the The India Retail Report 2009 compiled by Images F&R Research are:

 The Indian Retail market stood at Rs.1,330,000 crores in 2007 with annual growth of
about 10.8 per cent. Of this, the share of organized Retail in 2007 was estimated to be
only 5.9 per cent, which was Rs.78,300 crores. But this modern retail segment grew at
the rate of 42.4 per cent in 2007, and is expected to maintain a faster growth rate over
the next three years, especially in view of the fact that major global players and Indian
corporate houses are seen entering the fray in a big way.

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  Even at the going rate, the Indian retail industry is expected to touch Rs 18,10,000
crores (US$395bn) and organized retail is expected to touch Rs.2,30,000 cr (at
constant prices) by 2010, constituting roughly 13 per cent of the total retail market.
 Food and grocery dominates the retail segment with 59.5 percent share valued at Rs
7,92,000 crores.
 This is followed by clothing and accessories with a 9.9 percent share at Rs 1, 31,300
crores.
 Out-of-home food (catering) services at Rs 71,300 crore has overtaken jewelry Rs
69,400 crores as the third-largest retail category, with a 5.4% market share.
 Consumer durable at Rs 57,500 crore is the fifth-largest retail category.
 At sixth place is health and pharmaceuticals at Rs 48,800 crore.
 At seventh place is entertainment at Rs 45,600 crore.
 At eighth place is furniture, furnishings and kitchenware at Rs 45,500 crore

 This is followed by mobiles and accessories at Rs 27,200 crore.

 Leisure retail at Rs 16,400 crore.
 Footwear at Rs 16,000 crore.
 Health and beauty care services at Rs 4,600 crore.
 Watches and eyewear at Rs 4,400 crore.

The report is based on rising economic growth rate of 8-9 percent and a hike in average
salaries by about 15 percent, which is expected to increase the rate of consumption.

19
OBJECTIVE OF THE STUDY
1. To identify children behaviour in retail store during food shopping.
2. To assess the impact of food availability and variety in retail store with purchase behaviour
of children.
3. To identify the influence of food add advertisement in television.
4. To assess the influence of packaging in children food behaviour.

20
LIMITATIONS OF THE STUDY

The study is restricted to the sambalpur and burla only. Therefore, results of the study might
not be truly generalizable. As survey method has been used to collect primary data from
mothers and father, possibility of response bias cannot be ruled out. The results might be
different in case if observational methods are used to study food shopping behaviour of
children in retail stores.

21
REVIEW OF LITERATURE

Previous studies investigating nature of in-store FPS and shopping behaviour of children in
retail stores have been presented here. In-store FPS Previous studies have recently
investigated nature and extent of use of food promotions on food packages targeted at
children. Chapman et al. (2006) found that cartoon characters and celebrities are generally
used to promote foods in supermarkets. Page et al. (2008) reported that children favourite
characters, movie and TV characters, an enlarged image of the cereal usually in a ready-to-eat
fashion in a bowl are commonly used to target cereals at children. Berry and McMullen
(2008) found that spokes-characters, child centred incentives/premiums, child friendly
colours are used to promote cereals in Canadian supermarkets. Harris et al. (2009) reported
that large number of food promotions such as third party promotions and cross-promotions
are targeted at youth.

Mehta and her colleagues used qualitative and quantitative methods in Australian
supermarkets in 2012 to investigate the nature and extent of marketing techniques used on
packaging of child-oriented food and beverage products. They categorized these marketing
techniques as – semiotics (child-oriented graphics, child-oriented cartoons and celebrities and
claims about health and nutrition), cross-promotions (links to television, movies and
websites), packaging form (lunch box/kids-size packaging and unusual shapes), price
promotions (discounts and bonus offers) and premium promotions (giveaways (toys and
games) and competitions). Their findings revealed that semiotics is the most frequently used
marketing technique followed by cross-promotions, attractive packaging designs, price
promotions and premium promotions. These findings were further corroborated by Soni
(2013) through content analysis of 107 food packages in India. She found that semiotics,
novelty packaging and price promotions are used in majority of foods targeted at children.
Especially, bright colours, captions about flavour, nutrition claims, licensed cartoon
characters and captions about unusual food shapes or colours are most commonly used to
target children. Apart from this, accessibility and kid-friendly sales personnel are importantly
used in stores to target children (McNeal, 1999; Filipovic and Djordjevic, 2010). Young
(2003) observed that foods are seen to be positioned at eye level or at reachable shelf
locations and at point of sale to influence purchase decisions of mothers and children in retail
stores. These findings were confirmed by Dixon et al. (2006) and Ebster et al. (2009).

22
Children’s food shopping behaviour

Food shopping behaviour of children in retail stores is also influenced by television

commercials. Arnas (2006) found that a majority of children either desire to purchase foods
that they watch in television advertisements or request parents to buy those advertised foods
during shopping at the supermarket. Most of the time, children request parents to buy
advertised foods such as sweets, snacks, meats, fruits, vegetables, dairy products and
prepackaged meals in retail stores (O’Dougherty et al., 2006). They also recall jingles/slogans
or celebrities associated with advertised foods, if they find advertised foods in retail stores.
Hastings et al. (2003) and Cairns et al. (2009) further reported significant association between
food promotion through television advertisements and children’s food preferences. Younger
children were reported to pay more attention to advertisements than older children.

Gelperowic and Beharrell (1994) carried out mall-intercept interviews in four shopping
centres in Bedfordshire. Data were collected from 100 mothers of children aged below 12
years. Appealing packaging was found to have strong influence on purchase decisions of
children in a shopping centre. Most of the time children purchased or requested foods
available in attractive packages. Hastings et al. (2003) concluded that various attributes of
packaging such as colour, characters depicted on package, free gifts, games, shapes or
pictures of food highlighted on packages made a package attractive for children. Children
were also found to give high priority to flavour/taste, characters/action figures and colours in
choosing foods while other attributes such as foods depicted on package, appearance of
product and free gifts were given low priority. These findings were corroborated by Wilson
and Wood (2004) who conducted research in Scotland using focus groups and depth
interviews in supermarkets with mothers of children (age category nine to 11 years). It was
reported that children preferred those foods in retail stores which were available either in
attractive packaging or when some free gifts were offered with them. Atkin (1978) conducted
an observational study in 20 supermarkets in the USA and found that availability of cereals
with premium incentives (free gifts) highlighted on packages attracted attention of children.
Kaur and Vohra (2013) collected self-reports from mothers of children (aged four to 11
years) in India. They found that availability of foods in various tastes/flavours and/or brands,
shapes, colours and sizes often allure children in retail stores.

Demographic variables namely, age, gender and family income are also witnessedto
influence food shopping behaviour of children in retail stores. Atkin (1978) found that

23
younger children initiate more purchase requests than older children and assist parents in
buying groceries. Similar findings have been given by Ebster et al. (2006, 2009). They
reported that children in age category three to seven years make more purchase requests than
children in age bands eight to ten years and 11 years and above. As regards gender
differences, Kaur and Vohra (2013) found that food purchase requests of male children in
retail stores are much more affected by FPS than purchase requests of female children. Also,
male children behave more actively in retail stores than female children (Vohra and Soni,
2015). More so, girls are more commonly seen to help parents in buying breakfast cereals or
fruits (Pettersson et al., 2004). Further, in high-income families, children actively interact
with parents about purchase decisions because they have greater exposure to the economic
world than children from low-income families (Ward, 1974; Moschis and Churchill, 1978;
Vohra and Soni, 2015).

The above reviews suggest that children act as food purchase agents or play a dominant role
in family food shopping decisions.

Effect of television advertisement for foods on food consumtion in children

A substantial body of research indicates that prevalence of obesity in childhood is increasing.

The classic externality theory of obesity postulates that the obese are more influenced by
external stimuli than are the lean (Schacter, 1971). Direct exposure to certain types of food,
such as processed and snack foods high in fat and sugars, generally energy dense, may
contribute to the development of child obesity. A critical indirect influence on children’s food
choices and intake may be advertising of foods on television. Many correlational studies have
demonstrated an association between the duration of TV viewing and levels of overweight
and obesity in both children and adolescents (Anderson, Crespo, Bartlett, Cheskin, & Pratt,
1998). However, such cross-sectional studies fail to demonstrate a causal link from viewing
TV ads to extra eating. Kaur, Choi, Mayo, and Harris (2003) conducted a prospective study
in which it was found at the three-year follow up that those who watched two or more hours
of TV per day were twice as likely to become overweight during the course of the study. Two
other longitudinal studies have produced similar findings (Francis, Lee, & Birch, 2003;
Proctor et al., 2003). This supports the notion that excessive TV viewing does contribute to
weight gain. Furthermore, in a 6-months intervention study in which children’s television
viewing was substantially limited, Robinson (1999) found that rises in BMI and fat

24
deposition were significantly less than in a control group without intervention. These data
also support the hypothesis that exposure to current television programming helps to cause
weight gain in children As far as we are aware, this is the first study to show that exposure to
advertisements increases food intake per se in children. It supports the view that TV viewing
by children may not just be a sedentary behaviour in its adiposity promoting effect. Exposure
to advertisement for foods on TV can have an effect also on eating behaviour, stimulating
energy intake from a range of foods and exaggerating unhealthy choices among foods. The
observed association between remembering food ads and eating more indicates that a
susceptibility to food cues contributes to this overeating and promotes weight gain in
children. This proposition requires testing in a prospective design.

25
RESEARCH METHODOLOGY

Explanation of Factor Analysis

Factor analysis is a technique that is used to reduce a large number of variables into fewer
numbers of factors. This technique extracts maximum common variance from all variables
and puts them into a common score. As an index of all variables, we can use this score for
further analysis. Factor analysis is part of generalized liner model and this method also
assumes several assumptions: there is linear relationship, there is no multicollinearity, it
includes relevant variables into analysis, and there is true correlation between variables and
factors. Several methods are available, but principle component analysis is used most
commonly.

Factor loading:

Factor loading is basically the correlation coefficient for the variable and factor. Factor
loading shows the variance explained by the variable on that particular factor. In the SEM
approach, as a rule of thumb, 0.7 or higher factor loading represents that the factor extracts
sufficient variance from that variable.

Eigenvalues: Eigenvalues is also called characteristic roots. Eigenvalues shows variance

explained by that particular factor out of the total variance. From the commonality column,
we can know how much variance is explained by the first factor out of the total variance. For
example, if our first factor explains 68% variance out of the total, this means that 32%
variance will be explained by the other factor.

Factor score: The factor score is also called the component score. This score is of all row
and columns, which can be used as an index of all variables and can be used for further
analysis. We can standardize this score by multiplying a common term. With this factor
score, whatever analysis we will do, we will assume that all variables will behave as factor
scores and will move.

Criteria for determining the number of factors: According to the Kaiser Criterion,
Eigenvalues is a good criteria for determining a factor. If Eigenvalues is greater than one, we
should consider that a factor and if Eigenvalues is less than one, then we should not consider

26
that a factor. According to the variance extraction rule, it should be more than 0.7. If
variance is less than 0.7, then we should not consider that a factor.

Rotation method: Rotation method makes it more reliable to understand the

output. Eigenvalues do not affect the rotation method, but the rotation method affects the
Eigenvalues or percentage of variance extracted. There are a number of rotation methods
available: (1) No rotation method, (2) Varimax rotation method, (3) Quartimax rotation
method, (4) Direct oblimin rotation method, and (5) Promax rotation method. Each of these
can be easily selected in SPSS, and we can compare our variance explained by those
particular methods.

Factor analysis is a statistical method used to describe variability among observed,

correlated variables in terms of a potentially lower number of unobserved variables called
factors. For example, it is possible that variations in six observed variables mainly reflect the
variations in two unobserved (underlying) variables. Factor analysis searches for such joint
variations in response to unobserved latent variables. The observed variables are modelled as
linear combinations of the potential factors, plus "error" terms. Factor analysis aims to find
independent latent variables. The theory behind factor analytic methods is that the
information gained about the interdependencies between observed variables can be used later
to reduce the set of variables in a dataset. Factor analysis is commonly used in biology,
psychometrics personality theories, marketing, product management, operations research, and
finance. Proponents of factor analysis believe that it helps to deal with data sets where there
are large numbers of observed variables that are thought to reflect a smaller number of
underlying/latent variables. It is one of the most commonly used inter-dependency techniques
and is used when the relevant set of variables shows a systematic inter-dependence and the
objective is to find out the latent factors that create a commonality.

Suppose a psychologist has the hypothesis that there are two kinds of intelligence, "verbal
intelligence" and "mathematical intelligence", neither of which is directly observed. Evidence
for the hypothesis is sought in the examination scores from each of 10 different academic
fields of 1000 students. If each student is chosen randomly from a large population, then each
student's 10 scores are random variables. The psychologist's hypothesis may say that for each
of the 10 academic fields, the score averaged over the group of all students who share some
common pair of values for verbal and mathematical "intelligences" is some constanttimes
their level of verbal intelligence plus another constant times their level of mathematical

27
intelligence, i.e., it is a combination of those two "factors". The numbers for a particular
subject, by which the two kinds of intelligence are multiplied to obtain the expected score,
are posited by the hypothesis to be the same for all intelligence level pairs, and are called
"factor loading" for this subject. For example, the hypothesis may hold that the average
student's aptitude in the field of astronomy is

{10 × the student's verbal intelligence} + {6 × the student's mathematical intelligence}.

The numbers 10 and 6 are the factor loadings associated with astronomy. Other academic
subjects may have different factor loadings.

Two students having identical degrees of verbal intelligence and identical degrees of
mathematical intelligence may have different aptitudes in astronomy because individual
aptitudes differ from average aptitudes. That difference is called the "error" — a statistical
term that means the amount by which an individual differs from what is average for his or her
levels of intelligence (see errors and residuals in statistics).

The observable data that go into factor analysis would be 10 scores of each of the 1000
students, a total of 10,000 numbers. The factor loadings and levels of the two kinds of
intelligence of each student must be inferred from the data

Research design

A research design is the set of methods and procedures used in collecting and analyzing
measures of the variables specified in the research problem research. The design of a study
defines the study type (descriptive, correlation, semi-experimental, experimental, review,
meta-analytic) and sub-type (e.g., descriptive-longitudinal case study), research
problem, hypothesis, independent and dependent variables, experimental design. and, if
applicable, data collection methods and a statistical analysis plan. Research design is the
framework that has been created to find answers to research questions.

Data

Mostly the primary data has been collected and analyzed. In some case the secondary data
has been considered for substantiating the findings. Secondary data was collected from the
magazines, articles and from websites.

28
Questionnaire

The questionnaire consists of 17 questions relating to the topic. And the question are for the
father and mother of the children to find the accurate data.

Sample size

Sample size for this study is 62. Respondents are Father / Mother of the children.

Sampling design

The sampling design is simple random sampling for the description of 17 questions.

Tools and Techniques in Data Analysis

Statistical analysis is done through the help Descriptive statics, correlation and factor analysis
for evaluating the data.

29
DATA ANALYSIS AND INTERPRETATION

Factor Analysis

KMO and Bartlett's Test

Table 1

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .552

Approx. Chi-Square 278.694

df 136
Bartlett's Test of Sphericity

Sig. .000

Sampling adequacy is 55 % because KMO value is 0.552

The KMO value is .552 which telling us that we can go ahead with this analysis .

KMO measure of sampling adequacy of ( .5) or more is ok for factor analysis.

This suggests that the hypothesized model with 17 items is sufficient to explain food
shopping behavior of children in retail stores.

30
Factor Analysis

Table 2

Factors Percentage Extraction

of Variance

My child often surfs for advertise food items in the store and
17.101 .610
put those items in the shopping card himself/herself

My child often pulls me to show food items that he/she

12.571 .641
wants to buy in store

My child enjoys putting the foods items in stroller

11.736 .797
himself/herself in the store

My child enjoys touching food items in the store 10.167 .781

My child offen catches food products which are kept at

7.192 .784
reachable shelf location in the store

If advertised food items are not available in retail store, my

6.434 .789
child ask me to go another store

If food items are available in retail store in different shapes /

varieties, the number of purchase request by my child is also 6.060 .717
increase

My child often makes more purchase request when he/she

5.416 .811
finds food items in many tastes/ flavours

Avaibility of different brands of a food items increases the

4.464 .667
chances of purchase request by my child

The more time children spend in a store, the more purchase

3.748 .726
request they make

My child often makes a request for those food items in the

3.531 .576
store which are mostly advertised on TV

31
When my child watches advertised food items in the store
2.892 .686
he/ she often recalls the advertisements seen on TV

My child often recalls the jingie/ slogan of advertised food

2.706 .694
items, when he/ she sees food items in retail store

My child recalls the celebraty associate with a food brand

2.169 .673
while purchasing a food items

My child doesnot show intrest in those food items which are

1.738 .826
available in simple packages in the store

My child's taste preference also have an influenece on

1.114 .660
selection of food items in the store

My child colour preferences also have an influence on

.961 .674
selection on gfood items in the store

Explanation of the factors

From the above table:

All the factors have been given appropriate names according to the variables that have loaded
on to each factor.

Children’s active assessment of foods (five items) represents that children enjoy shopping for
foods in retail stores. They often surf for advertised foods and put them in shopping carts.
They pull mothers to show foods that they wish to buy in retail stores implying that they
display considerable pester power while buying foods. Besides, children also enjoy touching
and catching foods available at reachable shelf locations in stores. Thus, they play an active
role as shoppers in retail stores. Impact of availability and variety on children’s purchases
(five items) explains that children make more purchase requests due to availability of foods in

32
different shapes/varieties, tastes/ flavours and brands in retail stores. In addition to this, if
children spend more time in retail store then the demand will be more.

From the above table we know that packaging is most important factor having factor loading
value .8

Correlation

Further the investigation is done by using correlation

Descriptive Statistic

Table 3

Mean Std. Deviation N

My child colour preferences also have an

influence on selection on gfood items in the 3.47 1.183 62
store

My child doesnot show intrest in those food

items which are available in simple packages in 3.27 1.148 62
the store

My child often recalls the jingie/ slogan of

advertised food items, when he/ she sees food 3.92 1.076 62
items in retail store

My child recalls the celebraty associate with a

3.68 1.265 62
food brand while purchasing a food items

33
Correlations
Table 4

My child My child My child My child

colour doesnot often recalls the
preferences show recalls the celebraty
also have intrest in jingie/ associate
an those slogan of with a food
influence food advertised brand
on items food while
selection which items, purchasing
on gfood are when he/ a food
items in available she sees items
the store in food items
simple in retail
packages store
in the
store

My child colour Pearson

1 .145 .236 .387**
preferences also have Correlation
an influence on
Sig. (2-tailed) .259 .065 .002
selection on gfood
items in the store N 62 62 62 62

My child doesnot Pearson

.145 1 -.154 -.062
show intrest in those Correlation
food items which are
Sig. (2-tailed) .259 .231 .630
available in simple
packages in the store N 62 62 62 62
My child often Pearson
.236 -.154 1 .414**
recalls the jingie/ Correlation
slogan of advertised
food items, when he/ Sig. (2-tailed) .055 .231 .001
she sees food items
in retail store N 62 62 62 62

My child recalls the Pearson

.387** -.062 .414** 1
celebraty associate Correlation
with a food brand
Sig. (2-tailed) .002 .630 .001
while purchasing a
food items N 62 62 62 62

34
 **. Correlation is significant at the 0.01 level (2-tailed).
From the above correlation table and Descriptive statistics table,
The descriptive statistics tell about the no of responded and the mean value which helps to
know the data briefly.
From the above correlation table - due to the value are positive we know that then the value are
positively correlated that indicate that one variable increase then other is increases.
The correlation between slogan and celebrity associate with product are positively correlated.
Packaging and celebrity associate with the food items are also positively correlated.
N =62 is the no of respondent taken.

Descriptive Statistics
Table 5
Mean Std. N
Deviation

My child often surfs for advertise food items in the

store and put those items in the shopping card 3.81 .846 62
himself/herself

If advertised food items are not available in retail

3.82 1.181 62
store, my child ask me to go another store

When my child watches advertised food items in the

store he/ she often recalls the advertisements seen 3.87 .983 62
on TV

If food items are available in retail store in different

shapes / varieties, the number of purchase request 3.90 .762 62
by my child is also increase

35
Correlations
Table – 6 :

My child often If When my If food

surfs for advertised child watches items are
advertise food food advertised available in
items in the items are food items in retail store
store and put not the store he/ in different
those items in available she often shapes /
the shopping in retail recalls the varieties,
card store, my advertisements the number
himself/herself child ask seen on TV of purchase
me to go request by
another my child is
store also
increase

My child often Pearson

1 .129 .009 -.030
surfs for Correlation
advertise food
items in the store Sig. (2-
.317 .945 .820
and put those tailed)
items in the
shopping card N 62 62 62 62
himself/herself

If advertised Pearson
.129 1 .079 .163
food items are Correlation
not available in
Sig. (2-
retail store, my .317 .543 .206
tailed)
child ask me to
go another store N 62 62 62 62
When my child Pearson
.009 .079 1 .071
watches Correlation
advertised food
items in the store Sig. (2-
.945 .543 .586
he/ she often tailed)
recalls the
advertisements N 62 62 62 62
seen on TV

If food items are Pearson

-.030 .163 .071 1
available in retail Correlation
store in different
shapes / Sig. (2-
.820 .206 .586
varieties, the tailed)

36
number of
purchase request
N 62 62 62 62
by my child is
also increase

From the above correlation table and Descriptive statistics table,

The descriptive statistics tell about the no of responded and the mean value which helps to
know the data briefly.

From the above correlation table - due to the value are positive we know that then the value
are positively correlated that indicate that one variable increase then other is increases.

From the above table the factor are not correlated with other.each because the sig. value will
more then 0.05.

37
FINDINGS & SUGGESTION

FINDINGS

 As per data collected in sambalpur and burla area from the parents of the children ,it
is clear that the children are interested to purchase food items in retail store.

 According to 1st objective that the children shopping behavior towards retails store is
that they shows interest towards retail store due to different factor like food variety
,color, advertised food etc increase the shopping behavior. We are known it from the
factor analysis and child often makes more purchase request when he/she finds food
items in variety of flavor.

 The food advertisement also impact on children shopping, according to the data most
of children are interested to buy the food which are advertised on tv. From the
correlation this factor not correlated with other factors. But it is a important factor
known from factor analysis. The factor loading is 0.

 As from data analysis we comes to know that children does shows interest in simple
packaging.

 The Varity of food items and availability of food in retail store increase the interest of
purchasing.

 Having different flavor and verity of food, availability of advertise food, packaging
are most important factor found from factor analysis. The extraction value is .811.

 Children are put advertise food items in the shopping card himself/herself. The
extraction factor of these value is .610 . Here we find advertise food are attract the
children.

 The children are also enjoying putting food items in stroller. The extraction value of
this factor is .797.So we come to know stroller is important for retail store.

 Children are also enjoying to touch the food items in store. And the extraction value is
.784. This is an important factor.

38
 The advertise food are not available in the store they ask to another. The factor
extraction value is .798.

 The purchase requests of children are more according to shape, variety and number.
The extraction value is .717.

 The children are recall the advertise food seen on tv and watch that items in the store.
The extraction value is .689.

 They also remember the celebrity associate with the food brand while purchasing the
food items. The extraction value is .673.

 Children are not showing interest in those foods which are available in simple
packages. It is the most important factor according to table. And the extraction value
is .826.

 Taste preference also influence on selection of food items. The extraction value is
.660.

 Color preference also influence on selection of food items in retail store. The
extraction value is .674.

 More time the children spend in store , more they demand for purchase food. The
extraction value is .726.

 When children are found food items in many flavor/

39
SUGGESTION

 The findings of study having some implication. The study will directly impact on food
shopping behavior of children and according to study 44 crore are children .from the
above study the data are no clear because its will take from one area but the data
should taken from every part of India then the result will be clear .
 The retail industry focus on availability of food item with good packaging and variety
of color.
 The store are put the variety of food product with attractive color and flavor.
 No. of stroller are available in the retail store because children are enjoying.
 Refreshment zone should available for enjoyment and entertainment of childrent.for
these facility they spend more time and food demand also increase.
 More no. of advertise food items are available in the store.
 Food touching facility should also require in retail store.
 Advertise food items having different slogan and also celebrity associate food items
should be available in retail store.
 More no. of tasty food should available in retail store.

40
CONCLUSIONS

The study explores and validates four dimensions of food shopping behavior of children in
retail stores namely, children’s active assessment of foods, impact of availability and variety
on children’s purchases, influence of TV food ads on children’s purchases and influence of
packaging on children’s food purchases. This reveals that children either shop for foods
actively or strongly assist parents in food shopping in retail stores. Their active participation
in retail stores is seen to be reinforced through advertisements as they request parents to buy
advertised foods or put advertised foods in shopping carts themselves. An interesting finding
is that if children do not find advertised foods in a retail store, they prefer to go to another
store than buy any food offered in the store. They are seen to make frequent requests for
foods according to their tastes and preferences. They generally do not show interest in foods
which are available in simple packages in retail stores. Rather, they tend to buy foods which
are available in attractive colourful packages. This implies that in-store FPS play a pivotal
role in shaping food preferences of children. More so, availability of foods in retail stores in
different brands, shapes/varieties, tastes/flavors and colors also escalate food purchase
requests of children.

41
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variables and measurement error: Alzebra and statistics”, Journal of Marketing Research,
Vol. 18 No. 3, pp. 382-388.

Galst, J.P. and White, M.A. (1976), “The unhealthy persuader: the reinforcing value of
television and children’s purchase-influencing attempts at the supermarket”, Child
Development, Vol. 47 No. 4, pp. 1089-1096.

Gelperowic, R. and Beharrell, B. (1994), “Healthy food products for children: packaging and
mothers’ purchase decisions”, British Food Journal, Vol. 96 No. 11, pp. 4-8.

Hair, J.F. Jr, Black, W.C., Babin, B.J. and Anderson, R.E. (2010), Multivariate Data
Analysis, Pearson Education Inc., New Delhi.

Harris, J.L., Schwartz, M.B. and Brownell, K.D. (2009)

43
Appendix

QUESTIONNAIRE
CHILDREN FOOD SHOPPING BEHAVIOUR IN RETAIL STORE, A
STUDY IN INDIAN CONTEXT”
Dear Sir/Madam,

I Dibyasini Debta student of MBA department, 4th semester, Sambalpur University, Jyoti
vihar, Burla would be grateful if you could spare some of your time to respond the following
question. Your response will be treated as confidential and would only be used for the
purpose of study.

Part-A

1. Name
2. Occupation
3. Gender
a) Male
b) Female
4. Monthly expenditure in shopping children food
a) 10000
b) 10000-5000
c) 5000-3000
d) Below 3000
5. Children age
a) Above 10
b) 10-5
c) 5-3

44
Round 5 for strongly agree, 4 for agree, 3 for neutral,2 for disagree, 1 for strongly disagree

Sl.no. Statement to be responded on the basic of agree of agreeness Degree of responded

1 My child often surfs for advertised food items in the store and puts those 5 4 3 2 1
items in the shopping cart himself/herself

2 My child often pulls me to show food items that he/she wants to buy in the 5 4 3 2 1
store
3 My child enjoys putting the food items in stroller himself/herself in the store 5 4 3 2 1

4 My child enjoys touching food items in the store 5 4 3 2 1

5 My child often catches food products which are kept at reachable shelf 5 4 3 2 1
locations
in the store
6 If advertised food items are not available in retail store, my child asks me to 5 4 3 2 1
go to
another store
7 If food items are available in retail store in different shapes/varieties (e.g. 5 4 3 2 1
chocolates), the number of purchase requests by my child also increase

8 My child often makes more purchase requests when he/she finds food items 5 4 3 2 1
in
many tastes/flavours
9 Availability of different brands of a food item increases the chances of 5 4 3 2 1
purchase
requests by my child
10 The more time children spend in a store, the more purchase requests they 5 4 3 2 1
make

11 My child often makes a request for those food items in the store which are 5 4 3 2 1
mostly
advertised on TV
12 When my child watches advertised food items in the store, he/she often 5 4 3 2 1
recalls the
advertisements seen on TV
13 My child often recalls the jingle/slogan (e.g. “Mera Munch Mahan” slogan in 5 4 3 2 1
the
ad of Munch chocolate or kha ke piyo ya pikar khao in the ad of Knorr soupy
noodles) of advertised food item, when he/she sees food items in retail store
14 My child recalls the celebrity associated with a food brand while purchasing 5 4 3 2 1
a
food item (e.g. Saif Ali Khan in the ad of Lays chips)
15 My child does not show interest in those food items which are available in 5 4 3 2 1
simple
packages in the store
16 My child’s taste preferences also have an influence on selection of food 5 4 3 2 1
items in
the store (e.g. most of children dislike a food item of garlic taste)
17 My child’s colour preferences also have an influence on selection of food 5 4 3 2 1
items in
the store

45
“CHILDREN FOOD SHOPPING BEHAVIOUR IN
RETAIL STORE, A STUDY IN INDIAN
CONTEXT”

A Dissertation
Submitted in partial fulfilment
Of the requirement for
The award of degree

“MASTER OF BUSINESS ADMINISTRATION”

2016-2018

GUIDED BY : SUBMITTED BY :

Dr. Rohita Ku. Mishra Dibyasini Debta

(Asst. Professor) Roll No- 1416MBA28
Deptt. Of Business Administation Regd. No-15811/12
Sambalpur University

DEPARTMENT OF BUSINESS ADMINISTRATION

SAMPALPUR UNIVERSITY
JYOTI VIHAR, BURLA, PIN-768019

46
 DECLARATION

I hereby declare that this project work entitled “CHILDREN FOOD

SHOPPING BEHAVIOUR IN RETAIL STORE, A STUDY IN INDIAN
CONTEXT” carried out under the guidance of organization guide Dr. Rohit
ku.Mishra . This report is exclusively prepared and conceptualized by me in
partial fulfilment of the requirement for the award of degree “Master of
Business Administration” and is not submitted to this institution or any other
institution or published anywhere before.

Place:- DIBYASINI DEBTA

Date:- ROLL-NO:-1416MBA28

47
 ACKNOWLEDGEMENTS

“Words often fail to express one’s inner feelings of gratitude and indebtedness,
but it is the only readily available medium through which the undersigned can
express their sincere thanks to all those who are associated with the work in any
ways or other.”

A project can never exist and thrive in solitude. Project work is never the work
of an individual; it is more a combination of views, suggestions, contributions
and involving many individuals. Apart from the efforts of me, the success of
any project depends largely on the encouragement and guidelines of many
others. I take this opportunity to express my gratitude to the people who have
been instrumental in the successful completion of this project

I would like to thank Dr.Tushar Kanti Das, H.O.D of Business Administration,

Sambalpur university who kept faith on me and allowed me to go for this
project.

I also take this opportunity to express a deep sense of gratitude to Dr. Rohit
Kumar Mishra, for his guidance and constant supervision as well as for
providing necessary information regarding the project and also for his support
in completing the project. Lastly, I thanks almighty, my parents, Brother, Sisters
and friends for their constant encouragement without which this assignment
would not be possible.

DIBYASINI DEBTA

48
PREFACE

Dissertation aims at imparting an in-depth knowledge on the specified

topic. On completion of the study, a project is prepared on the topic chosen
depending upon one’s specialization area. Thus, this study report is a part of the
study of MBA curriculum. The importance of study lies in the fact that, it
facilitates the student to remain close to the practical situations and enable them
to study various functional areas related to the topic studied and worked.

The dissertation work enables the student to acquire an in-depth

knowledge about various aspects on the subject of their interest as it applies to
practical situations in the current business environment. The student, in course
of their dissertation work, gets an avenue to learn more practically, the
intricacies of different situations, which helps him / her to groom as a
successful professional manager.

In this research work, an effort has been made know the food shopping
behaviour of children in retail store During the course of Study, care has been
taken to compile relevant data relating to this project from different sources,
interaction with the concerned guide & interpret various aspects of the topic
closely and other related aspects.

49
Dr. Rohit Kumar Mishra
Assistant Professor
P.G. Department of Business Administration
Sambalpur University, Odisha-768019
Email: rohitjrf@gmail.com

CERTIFICATE
This is to certify that Dibyasini Debta bearing roll number
1416MBA28 a student of MBA 4th semester of the P.G Department of
Business Administration, Sambalpur University has undergone her
dissertation Work entitled “CHILDREN FOOD SHOPPING
BEHAVIOUR IN RETAIL STORE, A STUDY IN INDIAN
CONTEXT” under my super-vision and guidance. The dissertation is
original to the best of my knowledge and belief. I recommend the
Dissertation for Evaluation.

(Rohit Kumar Mishra)

Associate Professor
Dept. of Business Administration
Sambalpur University

50
 CONTENTS

Page No.

CHAPTER - 1 : INTRODUCTION 1-19

OBJECTIVE OF THE STUDY 20

LIMITATION OF THE STUDY 21

CHAPTER – 2 : LITERATURE REVIEW 22-25

CHAPTER – 3 : RESEARCH METHODOLOGY 24-29

CHAPTER - 4 : DATA ANALYSIS 30-37

CHAPTER – 5 : FINDINGS, SUGGESSTION AND 38-41

CONCLUSION

BIBLIOGRAPHY 42-43

APPENDIX

51
 LIST OF TABLES

TABLE TABLE NAME PAGE NO.

Table -1 KMO and Bartlett's Test 30

Table-2 Factor analysis 31-32

Table-3 Descriptive statics 33

Table-4 Correlation 34

Table-5 Descriptive statics 35

Table-6 Correlation 36

52
 CHAPTER – 1

INTRODUCTION
OBJECTIVE OF THE STUDY
LIMITATION OF THE STUDY

53
 CHAPTER – 2

LITERATURE REVIEW

54
 CHAPTER – 3

RESEARCH METHODOLOGY

55
 CHAPTER – 4

DATA ANALYSIS

56
 CHAPTER – 5

FINDINGS, SUGGESSTION AND

CONCLUSION

57
BIBLIOGRAPHY

58
APPENDIX

59