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CHAPTER 1

INTRODUCTION AND PROBLEM STATEMENT

In today’s world purchases made by a customer is to satisfy his or her needs. All
the behavioural activities carried out by a customer during and after the purchase of a
product are termed as “buyer behaviour”. In this study, we will come across the
origin of buying ideas like what is buyer behaviour, how consumer buy, why
consumer buy, types of buying, decision process and what motives them. Consumer
is the king and hence it is the consumer who determines what a business is, therefore
a sound marketing program is started with a careful analysis of the habits, attitudes,
motives and needs of consumers. In particular, a marketer should find answer to the
following questions: What are the kinds of products the customer buys? Why they
buy them? How they buy them? When they buy them? Where they buy them? How
often they buy them?

1.1. Buyer behaviour

Economy gets strengthened depending upon the wealth of goods and services
produced within the country. A huge number of alternative suppliers are present for
almost all the products today: substitute products are available to consumers, who
make decision to buy products. Therefore, the main objective of the seller is to please
the consumer at all times. In order to be successful, a seller needs to identify the
customer, what they buy, when they buy, why they buy and how they buy. A buyer
making a purchase of a particular product or a particular brand can be termed as
“product buying motives” and the reason behind the purchase from a particular seller
is known as “patronage motives”. When a person gets his pay packet, and if he is
educated, he prepares a family budget along with his wife, by appropriating the
amount to different needs. It may happen that after a trip to the market, they could
have purchased some items, which were not in the budget, and thus there arises a
deviation from the budgeted items and expenditure. All these behavioural changes
within human beings during the period of purchasing can be termed as “buyer
behaviour”.
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1.2. Consumer buys according to his/her needs

1.2.1. Consumer desire is recognized

The first step the consumer determines that he is not satisfied (i.e.,
consumer’s perceived actual condition) and would be keen to improve his/her
situation (i.e., consumer’s perceived desired condition). For instance, internal
triggers, such as hunger or thirst, may tell the consumer that food or drink is needed.
External factors can also trigger consumer’s needs. Marketers are particularly good
at this through advertising; in-store displays and even the intentional use of scent
(e.g., perfume counters).

1.2.2. Information to be searched

The next step is to undertake a search for information on possible solutions.

The sources used to acquire the information may be minimized to the maximum like
remembering the information from previous experiences (i.e., memory) or the
consumer may extend considerable effort to collect information from outside sources
(e.g., Internet, friends, other buyers etc.). How much amount of effort each
consumer spends towards searching depends on factors such as: the importance of
satisfying the need, similarity with available solutions, and the time available to
collect the information.

1.2.3. Options are evaluated after use

Consumers’ efforts may result in a set of options from which a choice has to
be made. It should be noted that there may be two levels in this stage. At level one
the consumer may create a set of possible solutions to their needs (i.e., product types)
while at level two, the consumer may be evaluating the particular product or service
(i.e., brands) within each solution. For example, if a consumer wants to replace his
100cc bike with a 150-200cc bike he may have plenty of options like Pulsar,
Karizma, Appache, Unicorn, etc.

1.2.4. Purchase

In most of the cases the solution chosen by the consumer will match with the
product. However, this may change at the actual time of purchase. The “intended”
purchase may be altered at the time of purchase for many reasons such as: the
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product is out-of-stock, a competitor offers an incentive at the point-of-purchase

(e.g., store salesperson mentions a competitor’s offer), the customer lacks to have the
necessary funds (e.g., credit card not working), or members of the consumer’s
reference group take a negative view of the purchase (e.g., friend is critical of
purchase).

1.2.5. Evaluation after purchase

Once the purchase is over, an evaluation of the decision is made. If the

product performs below the consumer’s expectation then he/she will re-evaluate the
satisfaction with the decision, which at its extreme and it may result in the consumer
returning the product. While in less extreme situations, the consumer will retain the
purchased product but may take a negative view of the product. Such evaluations are
more likely to occur in cases of expensive or highly branded products. To help the
consumers to ease the concerns with their purchase evaluation, marketers need to be
receptive and also take initiative steps to encourage consumer contact. Customer
service centres and follow-up market research are useful tools in helping to address
the purchasers’ concerns.

1.3. Why Consumers Buy

Purchases are made to satisfy the needs of the consumers. Some of these
needs are basic and are needed for survival, while other needs are not required for
survival and vary depending on the purchaser’s taste and preferences. It probably
makes more sense to classify the needs that are not a necessity as wants or
desires. In fact, in many countries where the standard of living is very high and a
large portion of the population’s income is spent on wants and desires rather than on
basic needs. For example, in planning for a family vacation the mother may make the
hotel reservations but others in the family may have input on the hotel
choice. Similarly, a father may purchase snacks at the grocery store however his
youngest child may select something from the store shelf. So, understanding
consumer purchase behaviour involves not only understanding how decisions are
made but also understanding the dynamics that influence purchases.
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1.4. Types of consumer purchase behavior

A consumer faces purchase decision every day. But not all decisions are
given equal importance. Some decisions are more complex than others and thus they
require more effort by the consumer. Other decisions are fairly like a routine and
thus they require only little effort. In general, consumers face four types of purchase
decisions: They are given in detail as follows:

1.4.1. Minor New Purchase

These purchases represent something new to a consumer but in the consumer

mind is not a very important purchase in terms of need, money or other reason (e.g.,
status within a group).

1.4.2. Minor Re-Purchase

These are the most routine of all purchases and often the consumer returns to
purchase the same product without giving much thought to other product options
(i.e., consumer is brand loyalty).

1.4.2. Major New Purchase

These purchases are the most difficult of all purchases because the product
being purchased is important to the consumer but the consumer has little or no
previous experience making these decisions. The consumer’s lack of confidence in
making this type of decision often (but not always) requires the consumer to engage
in an extensive decision-making process.

1.4.3. Major Re-Purchase

These purchase decisions are also important to the consumer but the
consumer feels confident in making these decisions since he has previous experience
in purchasing the product.

For marketers it is important to understand how consumers treat the purchase

decisions they face. If a company is targeting customers who feel a purchase
decision is difficult (i.e., Major New Purchase), their marketing strategy may vary
greatly from a company’s targeting customers who view the purchase decision as
routine. In fact, the same company may face both situations at the same time; for
some the product is new, while other customers see the purchase as routine. The
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implication of buying behaviour for marketers is that different buying situations

require different marketing efforts.

1.5.Consumer Buying Decision Process

A quote of Napoleon says “Nothing is more difficult and therefore, more

precious, than to be able to decide is” is amply true in the case of consumer too. It is
for this reason that the marketers are bound to have full knowledge of the consumer –
buying decision process.

However, in this process the actual act of purchasing is only at one stage and
this process is initiated at several stages prior to the actual purchase. Secondly, even
though we find that purchase is one of the final links in the chain of process, not all
decision processes lead to purchase. The individual consumer may terminate the
process during any stage. Consumer decisions are met included in all stages. Persons
engaged in extensive decision making usually employ all stages of this decision
process. Whereas, those engaged in limited decision making and routine response
behaviour may skip some stages. The consumer decision process is composed of two
parts namely, the process itself and the factors affecting the process.

1.6. Economic Factors affecting the buyer behaviour

1.6.1. Disposal personal income

The economists make several attempts to establish a relationship between

income and spending. Disposal personal income represents potential purchasing power
that a buyer has. The change in income has a direct relation on buying habits.

1.6.2. Size of family income

The size of family and amount of family income affect the spending and
saving patterns. Generally, large families spend more and short families spend less, in
comparison.

1.6.3. Income expectations

The expected income to receive in future has a direct relation with the buying
behaviour. The expectation of higher or lower income has a direct effect on spending
plans.
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1.6.4. Propensity to consume and to save

This goes to the habit of spending or saving with the disposal income of
buyers. If the buyers give importance to present needs, then they dispose of their
income. Buyers spend less if they give importance to future needs.

1.6.5. Liquidity of Fund

The present buying plans are influenced greatly by liquidity of assets i.e.,
cash and assets readily convertible into cash, e.g. bonds, bank balances etc.,

1.6.6. Consumer Credit

“Buy now and pay later” plays its role effectively in the rapid growth of
markets for car, scooter, radio, furniture and the like.

1.7. Behavioural hypothesis

Economic model suggests behavioural hypothesis:

Lower the price of the product, higher the sales.

Lower the price of substitute products; lower the sales of the main product
Higher the real income, higher the sales of the product.
Higher the promotional expenses, higher the sales.

1.8. Types of Consumer Buying Behavior

Types of consumer buying behaviour are determined by:

Level of involvement in purchase decision. Importance and intensity of

interest in a product in a particular situation.
Buyers’ level of involvement determines why he/she is motivated to seek
information about a certain products and brands but virtually ignores others.

High involvement purchases--Honda Motorbike, high priced goods, products

visible to others, and higher the risk the higher the involvement. Types of risk could
be classified as: Personal risk, Social risk and Economic risk

1.9. Fast Moving Consumer Goods sector (FMCG)

Fast Moving Consumer Goods sector (FMCG) or Consumer Packaged Goods

sector (CPG) refers to sectors that satisfies the elementary needs of a consumer other
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than grocery, ranging from packaged foodstuff, dairy products, cooking oil, bread,
butter, cereals, beverages like tea, coffee, pharmaceuticals, confectionery, biscuits,
glassware, stationary items, watches, toiletries, detergents, shampoos, skin care
products, cosmetics, toothpaste, dish washing liquid, shaving cream, razor, batteries,
shoe polish, energy drinks, soft drinks, clothing, furniture and household accessories
to electronic goods like cell phones, laptops, computers, digital cameras etc. These
are usually categorized as Fast Moving Consumer Electronics or FMCEs. We know
that a major part of a consumer’s monthly budget is spent on these goods.

FMCG sector in India has grown in a phenomenal pace experiencing the

changes in the taste and preference of the consumers during the last decade owing an
increase in their incomes. Large scale and low cost production, modern retailing
strategies, branding and maintenance of intense distribution network have given
FMCGs an edge over others in raising and hovering revenues. At present, Indian
FMCG sector is worth Rs. 1300 billion and expected to be around a whopping value
of Rs. 4000 to Rs. 6000 billion by 2020. Thus, we can see huge job opportunities in
the field of FMCG and its closest rival retailing sector in the field of marketing,
retailing, operations, advertising, supply chain, logistics, human resources, product
packaging and development, finance, operations, general management, supervising
and so on.

Hindustan Unilever Limited (HUL), Gujarat Co- operative Milk Marketing

Federation Ltd (GCMMF), Indian Tobacco Company (ITC), Nestlé India and Dabur
India Limited are the oldest FMCG companies in India. Globalization has broadened
the list of FMCG Companies in India. Foreign players like Cadbury, Godfrey
Phillips, Johnson & Johnson, Procter & Gamble (P&G), Gillette, Pepsi Co, Britannia
and Reckitt Benckiser, have been registering a firm presence in India for many years.
Among other Emami, Asian Paints (India), Marico Industries Ltd., Colgate-
Palmolive (India) Ltd., Henkel Spic, Modi Revlon, GlaxoSmithKline, Nirma Ltd and
Godrej Consumer Products Ltd., lead the FMCG Companies chart in the country.

The top contenders, that take initiative in brand positioning and establishing
their products in the market, are these leading FMCG companies. Product
differentiation, portable & attractive package styling, tag lines and punch lines in
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advertising, competent marketing and innovative product promotion strategies are

very important for this industry to perform well. Due to high competition this
sector’s pressure on margins is very high that makes advertisement as a prerequisite
for this sector. Today, FMCG companies play a very vital role in bringing up the
advertisement industry to such great height in India and bringing up innumerable job
opportunities and also by helping the growth of the economy.

Another factor that has brought up the job factor in this sector is that they
raided the rural markets and are performing very well there. The products that they
produce are labour intensive products and not capital intensive which help in
widening up the opportunities.

1.10. Retail Industry

After agricultural industry the retailing industry has the largest employer in
India [1]. We can see that in the year 2004 the Indian retailing industry had just
around Rs. 28,000 crores, which is around 3% of the total retailing market. Due to
the sunrise in this industry in India, we can expect a major turn [2]. Day by day the
top retailing giants keep on increasing their shares. Today’s Retail in India comprised
of organized and traditional retail formats, Indian Retail market is estimated to be
worth US$ 511 billion, and is estimated to grow up to US$ 833 billion by 2013 [3].
The organized retail that currently accounts for less than 5 per cent of the total retail
market is expected to register a compound annual growth rate (CAGR) of 40 per cent
and swell to US$ 107 billion by 2013. A report by global consultancy firm, AT
Kearney quotes: The consumer spending in India has increased by an impressive 75
per cent in the last four years and will quadruple in the next 20 years [4].

Moreover, India recently topped the Nielsen Global Consumer Confidence

study, conducted by Nielsen, a market research company [5]. The biannual report
reveals that Indians are the most optimistic, globally, who think that their country
will be out of the economic recession in the next twelve months [6]. However the
size of Organized Retail in India will exceed US$22bn mark from current level of
about US$4bn with its space requirement touching over 220mn sq. ft., by 2010,
according to The Associated Chambers of Commerce and Industry of India [7], in a
paper on `Retail Scenario in India and Its Related Issues’, has stated that approx.
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40mn sq. ft. is currently generating a business of about US$4bn in organized retail.
India’s vast middle-class and its almost untapped retail industry are key attractions
for global retail giants wanting to enter newer markets and India provides for the
ideal locations [7]. Since, Delhi and its suburbs have so far seen the growth of 100
bigger and smaller malls; roughly 600 new malls are coming up in other metropolis
and large townships in which less than 35% of retail business is going to be
transacted [8]. It is seen that over 1000 malls are in the pipelines for smaller
townships in which the retail sector is projected to grow at over 60% because of
ample availability of land and increased purchasing power of the folks living in those
areas aided by increased economic activities. Naturally, the large players will prefer
to go there and put up their shops by sourcing their supplies from the places
convenient to them [8].

The major areas in which the retailing industries boom today in cities and
metropolitan cities are in the field of food items, FMCG products, grocery,
sportswear, outerwear, tailored clothing, eyewear, watches, footwear and accessories.
The retail businesses will predominantly stay with malls that are put up in metros and
large cities will include apparel, pharmaceuticals, luxury goods and consumer
durables.

One of the major developments has taken place after liberalization was the
entry of organized retail stores in different parts of India. This is well supported by
researchers in journals. The researchers who pointed out that the size of organized
retail in India remained at 3% and there is enormous scope for improving the share of
organized retail in the market. The country witnessed the entry of a number of big
retail stores, established by some of the leading Indian industrial houses like Reliance
and Tata, though the stores like Nilgiris and Spencer’s were in existence for a longer
duration much before the liberalization era. The change in the retail scenario did
offer an alternative experience to the Indian consumers, but a sizeable migration of
consumers from the old traditional stores did not happen. A major reason is that the
new form of retail stores confined themselves only to metropolitan cities and urban
centres. Even in such urban locations, the response from the consumers has not been
very cheerful. This is amply proved by the continued existence of the traditional
stores with good business volume. However, what has been the experience of the
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consumers who are favouring the new format is a question to be probed. Further, the
consumers who patronize the organized retail and for what reasons they prefer the
new form of retail trade are to be examined, as this will determine the growth
prospects of the new form of retail trade.

Retailing industry is one of the pillars of Indian economy and it accounts for
14 to 15% of its GDP [9,10]. The Indian retail market is one of the top five retail
markets in the world by economic value. India is one of the fastest growing retail
markets in the world, with 1.2 billion people [9, 11]. According to a joint study by
apex industry body ASSOCHAM and Yes Bank Growing at a compounded annual
growth rate (CAGR) of 15 per cent overall retail market in India including both
organized and unorganized sectors is likely to reach a whopping Rs 47 lakh crore by
2016-17 from the level of Rs 23 lakh crore recorded in 2011-12 [5]. As of 2013,
India's retailing industry was essentially owner manned small shops. In 2010, larger
format convenience stores and supermarkets accounted for about 4 percent of the
industry, and these were present only in large urban centers. India's retail and
logistics industry employs about 40 million Indians, which account 3.3% of total
Indian population [12]. Hence, there is an increase in competition among all types of
modern stores such as grocery stores, supermarkets, discount stores, department
stores, catalogue showrooms; they are competing for the same customers [13].
Gigantic discount chains can threaten a traditional department store chain and a small
grocery store [14] while hypermarkets are a favourite type of retail store because of
lower price and convenience. Such stores affect traditional stores negatively [15]
because such store chains have advanced information technology, excellent logistic
systems and powerful bargains [16]. In addition, traditional retailers are being
coerced by modern stores since modern retail stores play in both the top (luxury
offering) and the bottom (discount pricing) markets. Modern retailers have not only
changed the structure of the retail industry, but also the pattern of consumer
behaviour. Nowadays, customers are facing difficulty in making their decision to
select from many types of stores such as grocery stores, supermarkets, discount
stores, large mega stores, and hypermarkets [17]. With this co-existence of all
formats of retail business and competition for same customers, how each of these
formats strive to retain their customers is a very significant question. Hence, this
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study is focused on a comparative analysis of customer retention by traditional and

modern retail outlets so as to capture the competitive advantage. It examines whether
the factors influencing the customer retention remain the same or different among the
organized and traditional retail business.

1.11. DEFINITION OF A MODEL

A model can be defined as a simplified representation of reality. It simplifies

by incorporating only those aspects of reality that interests the model builder. Other
aspects that are not of interest only add to the complexity of the situation and can be
ignored. Thus, an architect’s model of a building may not show furniture
arrangements if that is not important to the building‘s design. Similarly, in modeling
consumers we should feel free to exclude any aspects that are not relevant to their
behavior. Since the definition of consumer behavior involving a decision process,
models that focus on this process will be of considerable interest to us. Consumer-
behavior models can be classified in terms of scope. Some are designed to represent
a very specific aspect of behavior, such as consumers repetitive purchasing of the
same brand over a period of time. Others are much more comprehensive because
they attempt to include a great variety of consumer behaviors. These comprehensive
models are less detailed in nature so that they can represent many diverse situations [18].

1.12. MODEL BASED RESEARCH FOR CONSUMER BEHAVIOR

Marketers are frequently uncertain about the variables that are affecting
consumers. Sometimes this occurs because they do not clearly understand the extent
of variables that might be having an influence. Many of these variables, such as
personality or attitudes, are internal to the consumer (and not directly observable)
and a variety of others, such as the economic climate, are external. In other cases the
variables may be known by marketers but the exact nature and relative strength of
their influence is not clear. In any of these circumstances it is useful to refer to some
type of model of how consumers operate in order to organize and structure what is
understood about consumers. Studying consumer behavior can be quite complex,
especially because of the many variables involved and their tendency to interact.
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Models of consumer behavior have been developed in an effort to overcome these

difficulties [18].

1.13. MODELS OF CONSUMER BEHAVIOR

Comprehensive verbal models have been employed most often in the study of
consumer behavior. A variety of such models exist, each taking a somewhat different
view of consumers. The following are the models that are popular in the study of
consumer behaviour [18]

1. Nicosia Model of Consumer Behaviour

2. Howard – Sheth model of buyer behaviour
3. Engel – Blackwell – Miniard, 1990

Engel – Blackwell - Miniard was selected for the study as the model which
contains variables that influence buying behaviour which are found to be relevant in
both organized and traditional retail trade. However, apart from the variables
included in the model, additional variables have been added to make the model
operational for this study. The selected model will be modified with more
independent variables and applied to study the objectives of this research. Apart from
this, the revised model will be tested for validation.

1.14. ENGEL-BLACKWELL-MINIARD MODEL

The Engel-Blackwell-Miniard model was originally developed in 1968 by

Engel, Kollat and Blackwell and has gone through numerous revisions. Most recently
the model has been contributed by Miniard in conjunction with Engel and Blackwell.
It stands as one of the most popular representations of consumer behavior [18].

The model scheme, shown in Figure 1.1, depicts consumer behavior as a

decision process of five activities which occur over time: (1) motivation and need
recognition, (2) search for information, (3) alternative evaluation, (4) purchase, and
(5) outcomes. As shown in the model (Figure 1.1), variables are grouped into four
general categories: (a) stimulus inputs, (b) information processing, (c) decision
process, and (d) variables influencing the decision process. Arrows in the model
depict major directions of influence that specific variable exert [18].
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Figure 1.1 Engel-Blackwell-Miniard model [Source: David L Loudon and Albert J Della Bitta]
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1.15. MODEL EVALUATION

Advantages of the Engel-Blackwell-Miniard model include its consideration

of the many variables influencing consumers, its focus on levels of consumer
involvement, and its emphasis on the decision – making process regarding purchases.
Also, the flow of the model is quite flexible and it incorporates numerous theories of
consumer behavior. For example, the authors recognize that in numerous purchase
decisions many of the detailed steps are passed through very quickly or as bypasses,
as in the case of limited problem-solving behavior. Factors contributing to the
model’s clarity and flexibility, however, also generate some of its limitations. The
primary drawback appears to be a vagueness regarding the role of some variables.
For example, the influence of environmental variables is noted, but their role in
affecting behavior is not well specified. The role of motives in influencing behavior
is also quite vague. In addition, the model has been criticized as being somewhat
mechanistic in its treatment of the decision process. However, despite these
limitations, it has been updated regularly to accommodate new evidence about the
behavior of consumers. Because of this, the model has withstood the test of time
quite well since its first introduction in 1968, and it continues to provide a very
comprehensive framework for understanding the many facets of consumer behavior
[18].

Based on the model evaluation and literature support, researcher has modified
the above model by including few variables, which are given in detail at research
methodology section (Chapter 3).

1.16. RESEARCH GAP

The detail studies of review of literature indicate the following research gap
which necessitated an extensive study about the buying behavior in the new retail
environment.

1. How far the growth of the traditional and organized the retail business has
helped consumer? This has not been studied in an exhausting manner by the
earlier scholars.
2. Even a few studies in this context where confined to only metropolitan cities.
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3. The relations of the traditional retail business and their changed strategies for
survival have not been explored.
4. Analysis of buying behavior was limited to branded products.
5. Limited motivation initiatives are needed to influence the buying behavior at
traditional and organized retail stores were alone examined.

1.17. RESEARCH PROBLEM

One of the major developments in India since the Liberalization was the entry
of organized retail stores from other countries. Though such retail stores were in
existence in India before, yet, the entry of huge retail stores changed the retail
scenario in a big way. The changed retail environment created a new experience for
the Indian consumers. Specifically customer’s were exposed to multi brand products
stacked in huge space motivating the consumers to have the feel of different varieties
at different prices. This opens a challenge to consumers to make a choice of
purchase. Further, various offers and discounts, scheme created a host of choice
which confused the consumer without prior knowledge about the products
knowledge about the products on sale. Many occasions consumers made purchases
which they never had in their original plan of purchase. Added to this, the
availability of innumerable varieties of goods made the consumers visit such shops
frequently for window shopping. This increased the foot falls in the organized stores
though it did not result in sales always. This situation creates the question whether
traditional retailers lost their customers?

1.17.1. NEED FOR THE RESEARCH

In one way the consumers are in new environment where their buying
behavior was different and the traders had the necessity to increase the foot falls.
Therefore, traders have to monitor the buying behavior of the consumers closely and
position themselves to convert foot falls in to sales. In this context the Indian
consumers who have been absorbed for a type of buying behavior in traditional retail
stores which have displayed a different buying behavior in organized retail stores.
Therefore, it is necessary to identify the changing pattern of buying behavior in
Indian retail markets so as to understand the co-existence of traditional and organized
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retail stores. During FY07- 12, the organized retailing in India has grown at a CAGR
of 26.4%; higher that the total growth of Indian retailing. It shows that, retail
customers were started to prefer organized retail stores than the un-organized retail
stores in other words, they started to shift from unorganized retail to organized retail.
[250]. The Indian Retail industry has grown at a CAGR of 14.6% for the period
FY07-12. The said growth can be attributed to the growing Indian economy, increase
in Private Final Consumption Expenditure (PFCE) and the change in consumption
pattern of the Indian populace. The changing consumption pattern, in turn, primarily
remains driven by higher standard of living, growing middle-class population,
greater proportion of working women, increase in penetration levels of organised
retail etc. Of all the retailing segments, the contribution of food and grocery' is
estimated to have remained the highest at 58% of the total retail sales during FY12.
During FY07- 12, the organised retailing in India has grown at a CAGR of 26.4%;
higher to the growth of total retailing in India during the same period under
consideration [251].

1.17.2. RESEARCH QUESTIONS

In this context following questions arise:

1. Is the organized retail store an opportunities or a challenge for a buyer?

2. In what way the domestic retail business has to re-discover itself to face the
onslaught from these retail giants?
3. How far the buying behavior of the consumer is observed in organized retail
trade that is different from their behavior in traditional retail?
4. Should the traditional retailer re-position themselves to survive?
5. How the organized retailers have to monitor the buying behavior of the
consumers, so as to create and maintain the shopping environment?
6. What way the organized retailers and traditional retailer can motivate the
consumers?

These questions need to be answered in the current context.

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1.17.3. RESEARCH OBJECTIVES

1. To identify the factors influencing the buying behavior in organized and

traditional environment

2. To analyze the differences in organized and traditional retail stores.

3. To determine the strategy needed by the organized and traditional retails

business houses for their survival and growth

4. To assess the significance of the motivational factors influencing buying

behavior in organized and traditional retail traders

1.18. LIMITATIONS

This study was not focussed on all beverages, except coffee powder and tea
powder. Similarly, this study was not focussed on all confectioneries, except
chocolates and biscuits. Hence, this study may not be generalized for all
beverages and confectioneries.
This study was done in only three locations of Tamilnadu such as Chennai,
Madurai and Coimbatore. Hence, this study may have to be suitably modified
before generalizing entire Tamilnadu.
This study was designed based on Engel blackwell’s model and its
limitations. Hence this study may not be generalized all aspects of consumer
behaviour.
This study does not include online retail sales.
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1.19. SCOPE OF FUTURE RESEARCH

• This study was conducted in three locations of Tamilnadu. Hence, same study
can be extended in other locations of Tamilnadu, moreover, other states and
other countries too.

• This study was done by considering beverage and confectionary buying.

Hence, similar studies can be undertaken by including other FMCG goods.

• This study was carried out in organized and traditional retail outlets alone.
Hence, it can be extended to online retail sales.

• This study was conducted by keeping Engel – Blackwell – Miniard consumer

behavior model as base model. Hence, there are opportunities to conduct
similar studies by using other buying behavior models.

1.20. CHAPTER FRAMEWORK

Chapter framework of any report would give detailed methodology of

chapters’ segregation with sequential structure. This research report is structured
with following chapters.

1.20.1. Chapter 1. Introduction and problem statement

This section provides basic details of buying behaviour, consumer behaviour

and its models, Engel – Blackwell – Miniard Model and its evaluation, research gap,
research problem, need for the research, research questions, research objectives,
limitations, scope for future research and chapter framework.

1.20.2. Chapter 2. Review of literature

This section provides the details of previous research work and other
secondary sources of data related to consumer and their buying behaviour, models
and FMCG retail. This section helps to identify research problem and research gaps,
which directs to formulating research questions and objectives with various variables
and hypothesis.
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1.20.3. Chapter 3. Research methodology and Conceptual framework

Research methodology is the back bone of any research. This chapter

describes the basic methodology adopted for this study. It includes research design,
scope of the study, hypothesis design, sampling design, questionnaire design, data
collection methods, tools of analysis and analysis framework. This chapter also
illustrates the conceptual structure of entire research work with various constructs
and variables.

1.20.4. Chapter 4. Data analysis and interpretation

Data analysis and interpretation is the heart of any study. This section
analyses the collected data based on objectives and requirements the results were
reported. Based on the results, interpretation was given for each analysis.

1.20.5. Chapter 5. Summary and conclusion

Based on the analysis, the results and discussions are given in this section by
integrating analysis results, respondents’ feedback and literatures support. Moreover,
this chapter summarizes the entire research findings and gives few recommendations
based on the same. Finally, conclusion is given based on overall outcomes of this
research with respect to objectives, relevant recommendations, limitations and scope
for future study.