A Study on Buying Behaviour of Customers towards Retail Stores with Reference To

Big bazaar in Coimbatore City

Dr. Nandhini, Ph.D., B.Devi Priya

Lecture in Commerce Research Scholar
Department of Commerce Lecture in Commerce
S.N.R. Sons College (Autonomous) Department of Commerce
Coimbatore – 641 006 Sri Ramalinga Sowdambigai college of
E-mail Id: Science and Commerce
Coimbatore – 641 109
E-Mail Id:

Abstract:

This paper provides detailed information about the growth of retailing industry in

India. It examines the growing awareness and abroad consciousness among people across

different socio-economic classes in India and how the urban and semi-urban retail markets

are witnessing significant growth. It explores the role of the Government of India in the

industry growth and the need for the further reforms. In India the vast middle class and its

almost untapped retail industry are the key attractive forced for global retail giants wanting to

enter in to newer markets, which in turn will help the Indian Retail Industry to grow faster.

The paper includes growth of retail sector in India, strategies, strength and opportunities of

retail stores, retail formats in India, recent trends, opportunities and challenges. This paper

concludes with the likely impact of the entry of global players in to the Indian retailing

industry. It also highlights the challenges faced by the industry in near future.
INTRODUCTION:

The India Retail Industry is the largest among all the industries, accounting for over

10 per cent of the country GDP and around 8 per cent of the employment. The Retail Industry

in India has come forth as one of the most dynamic and fast paced industries with several

players entering the market. But all of them have not yet tasted success because of the heavy

initial investments that are required to break even with other companies and compete with

them. The Indian Retail Industry is gradually inching its way towards becoming the next

boom industry. The total concept and idea of shopping has undergone an attention drawing

change in terms of format and consumer buying behaviour, ushering in a revolution in

shopping in India. Modern retailing has entered into the Retail market in India as is observed

in the form of bustling shopping centres, multi-storied malls and the huge complexes that

offer shopping, entertainment and food all under one roof.

A large young working population with median age of 24 years, unclear families in

urban areas, along with increasing working women population and emerging opportunities in

the services sector are going to be the key factors in the growth of the organized Retail sector

in India. The growth pattern in organized retailing and in the consumption made by the Indian

population will follow a rising graph helping the newer businessmen to enter the India Retail

Industry.

In India the vast middle class and its almost untapped retail industry are the key

attractive forces for global retail giants wanting to enter into newer markets, which in turn

will help the India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent

annually. Modern retail in Indian could be worth US$ 175-200 billion by 2016. The Food

Retail Industry in India dominates the shopping basket. The Mobile phone Retail Industry in

India is already a US$ 16.7 billion business, growing at over 20 per cent per year. The future

of the Indian Retail Industry looks promising with the growing of the market, with the
government policies becoming more favourable and the emerging technologies facilitating

operations.

GROWTH OF RETAIL SECTOR IN INDIA

Retail and real estate are the two booming sectors of “India in the present times. And

if industry experts are to be believed, the prospects of both the sectors are mutually dependent

on each other. Retail, one of India largest industries, has presently emerged as one of the

most dynamic and fast paced industries of our times with several players entering the market.

Accounting for over 10 per cent of the country GDP and around eight per cent of the

employment retailing the Indian is India is gradually inching its way toward becoming the

next boom industry.

Percentage Share of Retail Segments in Total Retail

Sector
3 3 Clothing and Textiles
7 8 Food and Grocery
39 Consumers Durables
Footware
Furniture and Furnishing
7
Catering services
Jewellery and watches
Books, music and gifts
Mobile hansets
8 Others
5 11
9

RECENT TRENDS:

 Retailing in India is witnessing a huge revamping exercise as can be seen in the graph
 India is rated the fifth most attractive emerging retail market: a potential goldmine.
 Estimated to be US$ 200 billion, of which organized retailing (i.e. modern trade)
makes up 3 percent or US$ 6.4 billion
 As per a report by KPMG the annual growth of department stores is estimated at 24%.
 Ranked second in a Global Retail Development Index of 30 developing countries
drawn up by AT Kearney.
  Multiple derives leading to a consumption boom:
 Favourable demographics
 Growth in income
 Increasing population of women
 Raising aspiration: Value added goods sales
 Food and apparel retailing key drives of growth
 Organized retailing in India has been largely an urban
 Phenomenon with affluent classes and growing number of double-income households.
 More successful in cities in the south and west of India. Reasons range from
differences in consumer buying behaviour to cost of real estate and taxation laws.
 Rural markets emerging as a huge opportunity for retailers reflected in the share of the
rural market across most categories of consumption.
 IT is a tool that has been used by retailers ranging from Amazon.com to eBay to
radically change buying behaviour across the globe.

Company Profile

Introduction:

Big Bazaar is chain shopping malls in India, owned by the Pantaloon Group and which work

on Wal-Mart type economies of scale. They have had considerable success in many Indian

cities and small towns. Big Bazaar provides quality items but at an affordable price. It is a

very innovative idea and this hypermarket has almost anything under one roof... Apparel,

Footwear, toys, Household Appliances and more. The ambience and customer care adds on to

the shopping experience.

Is se sasta aura cha kahin nahin;-

Big bazaar is the company’s foray in to the world of hypermarket discount stores, the first

of its kind in India. Price and wide array of products are the USP’s in Big bazaar. Close to

two lakh products are available under one roof at prices lower by 2 to 60 percent over the

corresponding market prices. The high quality of service, good ambience, implicit

guarantees and continuous discount programmers have helped in changing the face of the
Indian retailing industry. A leading foreign broking house compared the rush at Big bazaar to

that of a local suburban train.

Products available in Big bazaar:-

Apparel and Accessories for Men, women and Children

Baby Accessories Toys Luggage

Cosmetics Home Textiles Liens
Crockery Household Appliances Sarees
Dress Materials Suiting& Shirting Household Plastics Stationary
Electrical Accessories Hardware Utensils & utilities
Footwear Home Decor

Objectives of the study:

1. The primary objective of the research is to find out the buying behaviour of the
customers.
2. To determine the current status of big bazaar.
3. To find out the customers response towards the big bazaar.
4. To study the satisfaction the level of customers in different attributes of big bazaar.

Review of Literature:
In olden days, the major work of the business is to concentrate on production areas. But

today, it is totally different now any business when they do not pay attention to consumers

will only fails and faces lot of survival problems. Whatever may be the objectives of the

business, the main area on which it has to concentrates on marketing found to be fairly

successful those success depends on many other factors.

M.Rajshekar conducted an investigation on consumers’ attitude towards retailing in indie,

and stated that most Indian retailers tend to blindly copy from western models. He is looking

for an Pan Indian model of retailing. His search for the ideal model also meant that something

that scared away most financiers used to dealing with more conventional business man.

John Adams concluded in his study that the customers would be king and we would get

good products at excellent prices. However, after seeing devasting impact that these mega-

stores have on be small ‘mom & pop’ stores (as they are called in the Us). In our selfish need
to stop at lower prices we are paving the down fall of the smaller stores. Wal-Mart is

considered evil in the US and some cities do not even allow Wal-Mart to set up shops within

their limits. One interesting aspects is that Wal-Mart grew in the opposite direction-capturing

the rural, small town markets before storming the big cities. Super markets has itself take a

toll ‘nadar kadais’ infact at the store in my colony, they rearranged the shop according to

vaasthu to improve sales. I wonder if they will be able to survive the hypermarkets.

Research Methodology:

Technology, customers tastes and preferences play a vital role in today’s generation.

Research methodology is a test of various methods to be followed to find out various

information’s regarding market strata of different products Research methodology is required

in every industry for acquiring knowledge of their products.

Research Design:

Exploratory research

Sampling design

Non-probability sampling-convenience sampling

Types of data to be used:

 Primary data

 Secondary data

Data collection method:

Data is collected from various customers through personal interaction. Specific questionnaire

is prepared for collecting data. Data is collected with mere interaction and formal discussion

with different respondents. Some other relevant information collected through secondary

data.
DATA ANALYSIS:

Table 1. Gender of respondents visiting big bazaar

Gender Total Percentage

Male 43 34.40
Female 82 65.60
Total 125 100.00
Interpretation: As seen in table 1, that out of total respondent, 34.4% are male and 65.6%
are female. It is known from the above table, majority of the respondent are female.

Table 2. Income of respondents visiting big bazaar

Monthly Income Total Percentage

Up to Rs 5,000 45 36.00
Rs.5,001-Rs.10,000 49 39.20
Rs.10,001-Rs.15,000 20 16.00
Rs.15,001 & above 11 8.80
Total 125 100.00
Interpretation: Table 2 describes the sample population based on their incomes. It was
found that the highest number of respondents where dependents and the least are respondents
who where the highest in income group.

Table 3. Awareness of the shop

Awareness Total Percentage

Advertisement 58 46.40
Friends 46 36.80
Relatives 18 14.40
Others 3 2.40
Total 125 100.00
Interpretation: From the above table it is found that majority of the population know about
the shop through advertisement and the least of the respondents came to know about the
shop through others.

Table 4. Items purchased at big bazaar

Items Total Percentage

Grocery (Provision) 34 27.20
Gift articles 38 30.40
Medicines 12 9.60
Cosmetic 14 13.60
Kitchen & Utensils 17 11.20
Others 10 8.00
Total 125 100.00
Interpretation: From the above table it is found that 27.20% of the respondents purchase
grocery (provision), 30.40% of the respondents purchase gift articles 9.60% of the
respondents purchase medicines, 13.60% of the respondents purchase cosmetics, 11.20% of
the respondents purchase kitchen & utensils and 8% of the respondents purchase others. It is
known from the above table that majority of the respondents purchase gift articles.

Table 5. Purpose behind visiting big bazaar

Purpose Total Percentage

Shopping 64 51.2
Outing 34 27.2
Others 27 21.6
Total 125 100.00
Interpretation: Out of the 125 respondents 51.2% of respondents visit big bazaar for
shopping, 27.2% for outing and 21.6% visit big bazaar for other purposes.

Findings

1. At present time Big Bazaar provide different types of product assortments to the
customers.
2. Continuously opening of Big Bazaar chains in different major cities, increasing
quantities of the customers & profit show that Big Bazaar most accepted name in
organized retail chain in India.

3. Big Bazaar mainly deal with middle income group people who want qualitative
product with reasonable cost
4. Big Bazaar has a good reputation of itself in the market.
5. Big Bazaar has positioned itself in the market as a discounted store.
6. Big Bazaar is a hypermarket as it provides various kinds of goods like apparels,
grocery, stationary, food items, leather items, watches, jewellery, crockery, decorative
items, chocolates and many more. It competes with all the speciality stores of
different products which provide goods at a discounted rate all through the year.
7. Customer care department is needed to take proper care of customer complaints and
queries. The person sitting at the help desk of Big Bazaar should be able to provide all
necessary information to the customers whenever it is required.
8. The infrastructure is needed to be changed a bit during weekends as heavy crowd
comes in to big bazaar during those days
Conclusion

Big Bazaar is a major shopping complex for today’s customers. It is a place where

customers find variety of products at a reasonable price. Big Bazaar has a good reputation of

itself in the market. It has positioned itself in the market as a discounted store. It holds a huge
customer base. The majority of customers belong to middle class family. The youth

generation also likes shopping and moving around big bazaar. Volume sales always take

place in big bazaar. Impulse buying behaviour of customers comes in to play most of the

times in big bazaar.

Different types of products starting from a baby food to pizzas all are available under

one roof. People not only visit big bazaar to do shopping but also visit for outing purpose as it

provides a very nice ambience to its customers. As people go to malls they just tend to move

around big bazaar whether it is for shopping purpose or for outing purpose. The major

significance of big bazaar is that it providing enough parking spaces for its customers. Even

though some customers say that they feel problem in parking their vehicle.

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