CUSTOMER SHOPPING

BEHAVIOR
Unorganized Retail vs. Organized Retail
Sector in Mumbai, India
Pankil Chugh 204
Jai Awatramani 402
Himmat Sandhu 416
Shikhar Tyagi 423
Aliasgar Navagharwala 425

1 MBA(Tech.) – Class of 2004-09, NMIMS, Mumbai,

India
 Chronology
Indian Retail Scenario
Objective of the survey
Questionnaire
Findings
Recommendations and learnings

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 Indian Retail Scenario
12 million retailers
Dominated by dukandars
Total retail market size in India in 2008:
USD 353 bn
Annual growth rate (2008): 12%
Present share of organized sector: 7%
Expected investment in modern retailing:
USD 25-30 bn
in next 4 years

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 Organized Sector in India
Modern format
Chain stores
Types
Specialty stores
Discount stores
Hypermarkets
Supermarkets
Convenience stores
Department stores
Malls

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 Classification of Indian
Customers

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Source: Future Group Research, Published in book “It happened in India” by
 Emerging trends in consumers’
income and consumption pattern
Growing prosperity

Increase in sizable disposable income

Place is no more important
Higher proportionate rural expenditure
Young population with higher purchasing
power
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 STAGES SELECTING A SELECTING
RETAILER MERCHANDISE

Need
Recognition

Information
Search

Evaluation

Choice

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THE BUYING
PROCESS
 Evaluation of Alternatives
Multiattribute Attitude Model
 Customers see a retailer or a product as a collection of
attributes or characteristics
 Designed to predict a customer’s evaluation of a
product or retailer based on:
 Performance on several attributes
 Importance of those attributes to the customers
 Attributes and importance weights are chosen as criteria
 Alternatives compared against the criteria

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9
10
11
 Importance Weights

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 Research Design and
Methodology
Exploratory research conducted in Mumbai
Focuses on customer shopping behavior in
Indian scenario among different formats, i.e.
organized and unorganized

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 QUESTIONNAIRE

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 Objective behind the
questionnaire
To identify the various factors that affect the
choice of format viz. Organized/ Unorganized
Retail.
The perceptions and the attitude towards
both the formats.
The type of goods customers prefer to
purchase from each format.
Findings that can help the organized and the
unorganized retail gain its key strength and
weaknesses.
Sample Size: 40

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 Customer Attributes affecting choice
of format

SEX Occupation
Organized
-
Unorganize
Age d Retail
Location
Group

Number
of
Members
16 in Family
 Other factors checked

We believe this is a big factor that affects the usage of

formats, in urban areas, SEZ’s the out of city crowd is
completely unaware of the local market, the local
language(Chennai) and the local behavior(general
bargaining rates), thus they may choose to shop from
Organized Retail coming as a big convenience to them

Some Customer would shop some particular items from

Organized Retail while some items from unorganized retail
thus using both the options
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 Which are the possible shops?

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 What do you shop, how often and
from where?

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 What do you shop, how often and
from where?
Items which are purchased on a daily basis
will be preferred on basis of closeness to the
store(organized/unorganized)
For items which customer prefer to purchase
once in a week, have a higher probability in
going in for organized retail.
What is the frequency of purchase eatable
items of customers going to each of the
formats as they contribute highest to the
sales

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 Reasons for preference to each of the
formats: May be it’s a Customer
perceptions or facts
11.) Why do you prefer to go for Organized Retail formats?

12.) Why do you prefer to go for Organized Retail formats?

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 Comparing Organized/Unorganized
Retailing on various attributes that decide
the choice of format
13.) Kindly rate the below of an organized retail and
unorganized retail based upon your preference

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 Any other comments from the
customer and

Comments given by
customers
Lets us know if customer is bring points
which are never
dissatisfied with the current
state of things covered within the
survey and thus bring

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 Organized Retail

An Analysis of Consumer Preferences

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 A Few Big Players are Dominating the
Market

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 Types of Purchases Made in
Organized Retail

F
F M

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D Dail W Weekl F Fortnigh M Monthly of
y y tly Rarer
 Top 10 Reasons Why Consumers
Prefer Organized Retail

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 Consumer Rating on Various
Criteria

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 Customers Want Further
Improvement

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 To Sum it Up

Consumers prefer organized retail outlets for

FMCG products that are bought in large
quantities and for a larger duration of time.
They also perceive it as a “family outing” and
are drawn towards it due to its convenience,
variety and special offers.

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 Unorganized Retail

An Analysis of Consumer Preferences

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 What Do Consumers Buy from
Unorganized Retail

F M
F

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D Dail W Weekl F Fortnigh M Monthly of
y y tly Rarer
 Top 10 Reasons Why Customers Prefer
Unorganized Retail

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 Consumer Ratings for Various
Criteria

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 Aspects That Put Consumers off

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 In a Nutshell…

Consumers prefer unorganized retail outlets

for items that have low shelf life and are
consumed on a daily basis (such as
vegetables). Logistical convenience and a
sense of personalization are key drivers
for consumers to continue shopping at
unorganized retail outlets.

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 Comparison

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 Organized Vs Unorganized
Organized Retail

Unorganized
Retail

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 Organized Vs Unorganized
Organized Retail

Unorganized
Retail

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 RECOMMENDATIONS

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 Unorganized Retail
Needs to be clean and a bit organized
Requires Planning
Increase the number of brands
Staff needs to be trained
Good Quality
Replenishment of stock
Warranty scheme

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 Organized Retail
Need more Fresh products
Home delivery
Quality can be improved - freshness
Online shopping
Require more counters on weekends

Tendency to shop for unnecessary thing just because you

like the offer.

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 LEARNING

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 Consumer Behavior
Attitude development and change
Intention to buy
Experiential involvement
Emotional response
Store choice v/s Brand Choice
Information
Print Ads
Friends

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 How does the retail consumer
think?

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