Unorganised Retail Industry In India

Published Date: 02 Nov 2017

Retailing is the largest private industry in India and second largest employer after agriculture. The sector contributes to around 10 per cent of GDP and 6-7 per cent of employment. With over 15 million retail outlets, India has the highest retail outlet density in the world. This sector witnessed significant development in the past 10 years – from small unorganized family-owned retail formats to organized retailing. Liberalization of the economy, rise in per capita income and growing consumerism have encourage larger business houses and manufactures to set up retail formats; real estate companies and venture capitalist are investing in retail infrastructure. Many foreign retailers have also entered the market through different routes such as wholesale cash-and-carry, local manufacturing, franchising, test marketing, etc. With the growth in organized retailing, unorganized retailers are fast changing their business models and implementing new technologies and modern accounting practices to face competition.

The retailing sector in India has undergone significant transformation in the past 10 years. Traditionally, Indian retail sector has been characterized by the presence of a large number of small-unorganized retailers. However, in the past decade there has been development of organized retailing, which has encouraged large private sector player to invest in this sector. Many foreign players have also entered India through different routes such as test marketing, franchising, wholesale cash-and-carry operation. With high GDP growth, increased consumerism and liberalization of the manufacturing sector, India is being portrayed as an attractive destination for foreign direct investment (FDI) in retailing. However, at present this is one of the few sectors, which is closed to FDI. Within the country, there has been significant protest from trading associations and other stakeholders against allowing FDI in retailing.

Organized Vs. Unorganized Sectors

The Indian retail industry is divided into organized and unorganized sectors. The Indian retail sector is highly fragmented, with a major share of its business is being run by unorganized retailers like the traditional family run stores and corner stores. The organized retail however is at a very nascent stage, though attempts are being made to increase its proportion bringing in a huge opportunity for prospective new players.

Unorganized Retail Sector

Indian retail is dominated by a large number of small retailers consisting of the local kirana shops, owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi (local betel leaf and tobacco) shops, hand-cart hawkers, pavement vendors, etc. which together make up the so-called "unorganized retail" or traditional retail. The last few years have witnessed the entry of a number of organized retailers opening stores in various modern formats in metros and other important cities.

Unorganized retailers normally do not pay taxes and most of them are not even registered for sales tax, VAT, or income tax.

Organized Retail Sector

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, and also the privately owned large retail businesses.

According to AT Kearney report for the year 2011,Organised retail accounts for 7 per cent of India's roughly US$ 435 billion retail market and is expected to reach 20 per cent by 2020.Food accounts for 70 per cent of Indian retail, but it remains under-penetrated by organized retail. Organized retail has a 31 per cent share in clothing and apparel and continues to see growth in this sector .The home segment shows promise, growing 20 to 30 per cent per year. India's more urban consumer mindset means this sector is poised for growth.

Major Formats of In-Store Retailing

Format

Description

The Value Proposition

Branded Stores

Exclusive showrooms either owned or franchised out by a manufacturer.

Complete range available for a given brand, certified product quality

Specialty Stores

Focus on a specific consumer need, carry most of the brands available

Greater choice to the consumer, comparison between brands is possible

Department Stores

Large stores having a wide variety of products, organized into different departments such as clothing, house wares, furniture, appliances, toys, etc.

One stop shop catering to varied/ consumer needs.

Supermarkets

Extremely large self-service retail outlets

One stop shop catering to varied consumer needs

Discount Stores

Stores offering discounts on the retail price through selling high volumes and reaping economies of scale

Low Prices

Hyper- mart

Larger than a supermarket, sometimes with a warehouse appearance, generally located in quieter parts of the city

Low prices, vast choice available including services such as cafeterias.

Convenience stores

Small self-service formats located in crowded urban areas.

Convenient location and extended operating hours.

Shopping Malls

An enclosure having different formats of in-store retailers, all under one roof.

Variety of shops available to each other.

LITERATURE REVIEW

Retailer Self Perceived image and competitive position

H. Oppewal and H. Timmermans (1997) indicated the importance of self perceived image and competitive positioning for the retailers. Previous researches study the store image from customer’s perspective but they tried to assess the store image from the perspective of the retailers. They identified 17 major attributes for the retailers and ask them to rate on these attributes, to identify their competitive advantages. The research was conducted on 183 retailers in European town. The research findings indicate that on average retailer’s consider Service as the dimension on which they differentiate themselves from the competitors. Price and Promotion are the factors having least impact on perceived image of the stores. They further suggested six dimensions to underlie retailer’s self perceived store image. Those are-

Price

Location

Store

Interior

Selection

Service

Product Quality

A study on the strategies of unorganized retailers with reference to consumer durables

Dr. K.S Kumar in his research analyzed the strategies which influenced the perceptions of unorganized retailers with reference to consumer durables. For the research they used 100 Retailers as the sample and studied with respect to the identified strategies. Results of factor analysis suggested that Product strategies are the most important followed by Price Promotion and Distribution strategies. They also studied that whether the strategies identified vary with the location. Results of t-test suggested that there was no difference between strategies of retailers and location.

The competitive response of small, independent retailers to organized retail: Study in an emerging economy

Ramakrishnan (2010) in his study try to decipher the competitive response of smaller retailers in an emerging economy- India- as they are facing competition from large, organized retailers. The competitive Behavior is comprehended in terms of patterns of retail functional and business strategies, in further classifying the retailers into strategic groups, and finally by assessing the performance of these clusters. The study is basically based on the survey of 605 grocery shops in two cities. The main objective of the study is to basically identify the key strategies that are adopted by the small retailers in order to maintain their competitive position in this competitive world, where they are facing stiff competition from the organized retailers. The main findings of the research point towards the key strategies such as- Maintaining a personal relationship with the customers, providing additional services which are valued by the customers, and the positive impact on small retail performance of adopting distinct retail functional and business strategies.

Indian Consumer Food Shopping Behavior And Their Choice & Preference For Packaged Food And Food Retailers – An Exploratory Study

The aim of this research paper is to study the Indian consumer food shopping Behavior & their choice and preference for packaged food and food retailers. It is to assess the impact of demographic dynamics on their choice for food and preference for food retailers across NCR (National Capital region) in India. In this study six different retailers viz. food bazaar, spancer retail, reliance fresh, 6ten retail stores, convenience stores and kirana (mom-n-pop) shops have been taken to examine the consumer’s perception for these retailers The purpose to choose these retailers was to assess the overall influence of both organized and unorganized food retailing on consumer buying decisions. Respondents were selected by using the stratified random sampling method and participation was voluntary. 925 respondents from Delhi, Gurgaon, Noida and Faridabad cities were interviewed using structured questionnaire. Statistical tools like chi-square, factor analysis, t-test, ANOVA and bonferroni test were used to attain final empirical results. In findings, there are varied variations in the consumer buying Behavior of packaged food on the preference of food and grocery retailers. Factor analysis produced seven dimensions of consumers‟ food shopping Behavior viz. innovative buying Behavior, traditional shopping Behavior, health conscious Behavior, hygiene conscious Behavior, brand and store conscious Behavior, reference group influence Behavior and quality conscious Behavior. The mean rating of categorized groups of respondents differs in their respective food shopping Behavior.

Standing up to Goliaths: How Small Traditional Stores Influence Brand Choices in India

Chattopadhyay et al. (2010) in his study points out that how the emerging economies and fast growing markets such as India has resulted in the transformation of the retail sector in India. India is also home to the largest number of Small Traditional Stores (STS) in the world. This research indicates that how even in the presence of large organized retailers Mom and Pop Stores still maintain their competitiveness and remain resilient with their service mix. The research also indicates that even in the presence of large retail store in the metro cities customers still remains loyal to the neighborhood stores. The distinctive strategies adopted by the retailers are- Providing credit, Home delivery and Customers can place orders on the phone.

A study on consumer behavior in malls vis-à-vis Mom and Pop shops

Shah (2009) in his study proposed the importance of understanding consumer understanding as central to the success of any business organization. In the changing environment of rapid growth and increasing competition from the organized retailers, Traditional retailers have experienced problems relating to improving their bottom line and retaining their customers. The study was carried out in western India in cities such as Gujarat, Rajkot, Jamnagar. People visiting malls and mom and pop stores were the major respondents for the research. The research points out various suggestions for Mom and Pop stores to remain competitive with the organized retailers, such as-

First of all they need to improve the processes. Careful inventory management needs

to be done by these stores to reduce losses.

Also the stores need to improve their display of goods so as to have an aesthetic appeal to the customers and also provide suppliers with a chance to promote their products.

Mom and Pop store should be looking to develop themselves as a specialty store. This will help them to focus on a single line of products and as a result in improving the processes. Also the consumers will have more choice than that in the retail outlets where only popular brands are available. But feasibility needs to be studied before venturing into a specialty store business.

Finally the Mom and Pop stores should keep on leveraging the customer relationship the store has developed.

Customer Service as Strategy For Unorganized Retailers: A Case Study of Ajmer

Pareek et al. in his study proposed the importance of customer service as strategy for the unorganized retailers in Ajmer to compete with Organized retailers. To conduct this research a questionnaire was done on 30 unorganized retailers and 30 customers to analyze the importance of customer service as strategy for unorganized retailers. Expectations of the customer’s with respect to unorganized retailers is positively related to-

Location

Trustworthy salespeople

Cleanliness

The research suggested that customer service is the most important differentiating attribute for unorganized retailers in order to compete with the organized retailers.

Changing Consumer Preferences From Unorganized Retailing Towards Organized Retailing: A Study in Jammu

Gupta and Tandon (2013) in his study on "Changing Consumer Preferences From Unorganized Retailing Towards Organized Retailing: A Study in Jammu" pointed out various factors that are important for the customers and that have lead to a change in consumer preference. The research was based in Jammu city. Main objective of the research was to identify factors that are influencing consumers to go to organized retailers and vice versa and also to identify the problems faced by the consumers with organized and unorganized retailers. One of the major results from the research was that 86.67% of the respondents go to unorganized retail outlets. The research also suggested some problems that are faced by the consumers at unorganized outlets such as-

Unhygienic condition of the store

Improper parking facility

Improper shelf space

Lack of knowledge of retailers

Would Indian consumers move from kirana stores to organized retailers when shopping for groceries?

This article seeks to understand whether Indian consumers are likely to move from traditional kirana stores to large organized retailers while shopping for groceries.Two hypotheses were proposed: H1: customer patronage differs for different grocery store attributes and H2: customer perceptions of grocery store attributes differ for kirana stores and organized retailers. The study was carried out across four Indian cities- two major and two smaller cities with around 100 respondents from each city. Stratified systematic sampling design with a sample size of 409 was used for the study. Multivariate statistical techniques were used to analyze the data collected with the help of a structured questionnaire. Customer patronage to grocery stores was found to be positively related to location, helpful, trustworthy salespeople, home shopping, cleanliness, offers, quality and negatively related to travel convenience. Kiranas do well on location but poorly on cleanliness, offers, quality, and helpful trustworthy salespeople. The converse is true for organized retailers. Kiranas have major disadvantages on all customer perception scores except location. These scores being less important determinants of patronage compared with location, in the short run kiranas may not be ousted out of customers’ favour. However, in the long run if they do not work on these other factors, they would face oblivion. Kiranas need to upgrade their facilities to be able to compete with the organized retailers, who are expected to improve their location scores rapidly in the near future.

Restaurants

Customer’s expectations factors in restaurants: The situation in Spain

Soriano (2002) in his study on "Customer’s expectations factors in restaurants: The situation in Spain", examines the factors which influences customers decision to visit the restaurants again for another meal. The main objective of the research is to find out the factors that are valued by the customers. Restaurant sector is fast growing in Spain. The study points out the importance of client’s satisfaction which result in attaining optimum quality level. The findings of the survey on customers collected data on perceptions of quality on a Likert scale. Findings of the research points out that- There was no significant difference between the perceptions of quality among Male and Female customers. Following attributes were rated as the most important-

Quality of food

Quality of Service

Cost/Value of meals

Place/Ambience of the restaurants

Kisang Ryu and Heesup Han (2010) in his study on "Influence of the Quality of Food, Service, and Physical Environment on Customer Satisfaction and Behavioral Intention in Quick-Casual Restaurants: Moderating Role of Perceived Price" examined the relationship between three determinants of Quality dimensions in quick casual restaurants where-

Predictor variables- Food, Service and Physical Environment

Moderator Variable- Price

Criterion variable- Satisfaction and Behavioral Intention

The study suggest that despite the importance of foodservice quality employees does not pay enough attention to how the combined effects of Quality (Food, Service and Physical environment) on Customer satisfaction which in turn affects Behavioral Intention. Multiple regression was used for the analysis and it showed that quality of food, service and physical environment were all significant factors in customer satisfaction.

Ute Walter, Bo Edvardsson, Åsa Öström, (2010) in their study "Drivers of customers' service experiences: a study in the restaurant industry" points out the importance of customer servicing in the restaurant industry. The purpose of the paper is to identify, portray and analyze the drivers of customer experiences. The study was based on 122 interviews including 195 favorable and unfavorable narratives, about customer experiences. The data was analyzed by means of extracts from the narratives. Findings of the research points out the importance of the social interaction, the core service and the physical context. The result suggests that great efforts are needed on the part of managers to understand the process of customer experiences, various interactions involved and also the crucial role of contact employees and customers involved in the interaction.

Jin et al. (2011) in his study on "What matter experiential value in casual dining restaurant?". The focus of the study is chain restaurant industry and the objective of the research is to determine which factor influences "experiential value" and "customer loyalty" formation. The main variables used for the study were

Food quality

Price

Brand image

Environment

Interpersonal service quality

The findings of the research suggested that all these variables lead to an experiential value and customer loyalty and ultimately lead to customer loyalty formation.

INTRODUCTION

Research is the process of scientific and systematic search done to find out evident information or to prove the statement of the problem or assumption. Research done here is purely academic in nature and in this case the research was carried out to find out: Successful Strategies of unorganized retailers- a case of Pharmaceutical and personal care, Food & Grocery store, and Restaurants in Bangalore.

3.2 STATEMENT OF THE PROBLEM

To analyze the factors to identify successful strategies for the unorganized retailers in Food & Grocery, Pharmaceuticals & Personal care, and Restaurants.

OPERATIONAL DEFINITIONS OF THE VARIABLE UNDER INVESTIGATION

Store Characteristics- It is basically about the store location and other intangible factors that we associate with the stores.

Ease of shopping- This variable basically measures kind of ease the person is at while doing shopping. In my research factors under ease of shopping will be- Display of products, Home delivery to make purchasing easy for the customers and the store layout.

Personal attention- It is the special attention shopkeeper gives to the customers so that they feel satisfied. It basically means Knowing the tastes and preferences of the customers, giving them advice, solving their problems while purchasing.

In-store experience- Customer should be comfortable while purchasing. It basically means display of products should be proper, Billing facility should be fast and prompt.

VARIABLES UNDER INVESTIGATION

Regression Analysis

Dependent Variable- Overall Satisfaction of the customers

Independent Variables-

Food & Grocery

Pharmaceutical & Personal care

Restaurants

Store Characteristics

Store characteristics

Quality

Ease of Shopping

In-store experience

Cleanliness and location

Personal Attention

Personal attention

Friendliness

In-Store Experience

Variety & Offerings

Personal courtesy

Offerings

One way ANOVA

Dependent Variables- All independent variables used during Regression analysis, under each category.

Factors- Age groups, Gender, Income Level.

3.5 Objectives of the Study

1. To identify the Generic, and Specific strategies for Pharmaceutical and personal care, Food & Grocery store, and Restaurants.

2. To find and analyze the association of demography of customers and the successful factors.

3. To explore the impact of the successful strategies on the overall satisfaction of customers.

3.6 HYPOTHESIS

1. There is no significant difference among customers of different demographic customers.

2. There is no significant impact of successful strategies on the overall satisfaction.

3.7 POPULATION AND THE SAMPLE OF STUDY

People in the, Koramangala 4th block area shopping at Food & Grocery stores, Pharmaceuticals & Personal care stores and also people eating out at unorganized small scale restaurants identified for the study.

Sample size of the study was- 289

Pharmaceutical & Personal care- 100 (from 4 stores identified for the study)

Food & Grocery- 90 (from 4 stores identified for the study)

Restaurants- 99 (from 4 restaurants identified for the study)

3.8 SAMPLING TECHNIQUE

Convenience sampling technique

It is a sampling technique that attempts to draw a sample of convenient samples. It will mainly include-

Store intercepts interviews after qualifying the respondents.

It is the least expensive and least time consuming and also because the population for the study is people of any age group, who purchases goods or the products from Pharmaceutical & Personal care store, Food & Grocery stores or eats out at the unorganized small scale restaurants.

3.9 DESIGN OF THE STUDY

Descriptive research

Basically descriptive research is used to test specific hypotheses and examine relationships. Information needed will be clearly defined and hence the research process will be formal and structured.

In the research that is performed the hypotheses could be defined clearly based on the tested theories. The data will be collected by using the survey method. Respondents will be asked variety of questions regarding the factors that are important for them while making purchases at unorganized stores. The questions will be structured thus this uses a structured data collection method. ((Malhotra.K.N & Dash.S, 2010).

3.10 TOOLS ADOPTED FOR THE STUDY

Questionnaire- Research instrument used for this research is questionnaire. The questionnaire will be kept simple including instructions for all questions. Questionnaire will include-

Demographic questions

Likert scale questions

3.12 PILOT TEST AND RELIABILITY OF THE INSTRUMENTS

Pilot study was conducted with 10 respondents in each of the category where they were asked open ended questions to elicit factors that indeed are important for the respondents. Questionnaire was prepared on the bases of the factors elicited from the pilot study.

3.13 STATISTICAL TECHNIQUE AND ANALYSIS

Descriptive statistics

Factor Analysis

Regression analysis

ANOVA

5.1 Descriptive Statistics for Food & Grocery, Pharmaceuticals & Personal care, and Restaurant

5.1.1 Food and Grocery

5.1.1.1 Descriptive Statistics

Statements

Minimum

Maximum

Mean

Std. Deviation

Quality of Products

3.00

5.00

4.5111

.52455

variety of products

3.00

5.00

4.2333

.56190

Home Delivery

3.00

5.00

4.1556

.65190

Attention to my demands

3.00

5.00

4.0000

.61808

Stores providing other products

3.00

5.00

3.9889

.64467

Knowing my tastes and preference

3.00

5.00

3.9444

.62461

Mobile recharge

3.00

5.00

3.9333

.59587

Store location

2.00

5.00

3.9333

.66704

Credit Facility provided by store

3.00

5.00

3.9111

.64728

Assortment of products

3.00

5.00

3.9000

.68777

Searching for products

2.00

5.00

3.8889

.64380

Cleanliness in store

3.00

5.00

3.8889

.71019

Personal courtesy

3.00

5.00

3.8667

.62170

Freshness of products

3.00

5.00

3.8667

.62170

Store appearance and atmosphere

2.00

5.00

3.8667

.63952

Familiarity with shop layout

3.00

5.00

3.8556

.61005

Shopkeeper providing advice

3.00

5.00

3.8444

.55911

Faster Billing

3.00

5.00

3.8333

.69103

Providing other stationery products

3.00

5.00

3.8222

.64613

Display of products

3.00

5.00

3.8000

.60336

On the basis of the Mean scores calculate d for the Food & Grocery stores we can conclude that Quality of products, Variety of the products, Home Delivery and Personal attention are the most important factors for Food & Grocery stores

5.1.1.2 Age profile of the Respondents at Food and Grocery stores

Frequency

Percent

Less than 20

12

13.3

20-30

31

34.4

30-40

32

35.6

more than 40

15

16.7

Total

90

100.0

Figure-5.1 Age profile of the respondents

Most of the respondents are in the age bracket of 20-40 years in the survey conducted at the Food & Grocery stores.

5.1.1.3 Gender Profile of the Respondents at Food & Grocery stores

Gender

Frequency

Male

37

Female

53

Total

90

Figure-5.2 Gender profile of the respondents

Most of the respondents were Females (58.88%) at the Food & Grocery stores and Male respondents are (41.11%).

5.1.1.4 Income Level of the respondents at Food & Grocery stores

Income Level

Frequency

Percent

Less than 10k

5

5.6

10k-30k

19

21.1

30k-50k

36

40.0

More than 50k

30

33.3

Total

90

100.0

Figure- 5.3 Income level of the respondents

Most of the respondents (40%) lie in the Income bracket of more than 30k-50k per month, and 33.33% of the respondents have Income level of more than 50k per month.

5.1.2 Pharmaceuticals & Personal Care

5.1.2.1 Descriptive Statistics

N

Minimum

Maximum

Mean

Std. Deviation

Familiarity with a shop layout

100

3.00

5.00

4.2300

.66447

Assortment of products

100

3.00

5.00

4.2300

.61718

Display of products

100

2.00

5.00

4.2100

.64031

variety of products

100

3.00

5.00

4.2000

.63564

Personal courtesy

100

3.00

5.00

4.1300

.56237

Store location

100

3.00

5.00

4.1100

.61783

Quality of Products

100

3.00

5.00

4.1000

.65905

Shopkeeper providing advice

100

3.00

5.00

4.0600

.58292

Searching for products

100

3.00

5.00

4.0400

.63437

paying attention to customer demand

100

2.00

5.00

4.0300

.62692

Store appearance and atmosphere

100

2.00

5.00

4.0100

.64346

Mobile recharge

100

2.00

5.00

4.0000

.68165

Faster Billing

100

3.00

5.00

3.9800

.65103

Home Delivery of products

100

3.00

5.00

3.9800

.58569

Payment by Credit/debit card

100

3.00

5.00

3.9800

.61922

Taste and preferences

100

3.00

5.00

3.9400

.63277

Problem solving by store personnel

100

3.00

5.00

3.9200

.72027

Knowledge of the store personnel

100

3.00

5.00

3.9000

.64354

Easy Replacement

100

3.00

5.00

3.8900

.61783

Brands of products

100

3.00

5.00

3.8700

.64597

Based on the mean values Familiarity with the shop layout, Assortment of products, Display of Products and Personal courtesy are important strategies for Pharmaceutical stores.

5.1.2.2 Age profile of the respondents at Pharmaceuticals & Personal care stores

Age

Frequency

Percent

Less than 20 years

13

13.0

20-30 years

35

35.0

30-40 years

36

36.0

more than 40 years

16

16.0

Total

100

100.0

Figure 5.4 Age profile of the respondents

Most of the respondents at the Pharmaceutical & Personal care stores are in the age bracket of 20-40 years. Around 35% of the respondents are in the age group of 20-30 years.

5.1.2.3 Gender profile of the respondents at Pharmaceuticals & Personal care stores

Gender

Frequency

Percent

Male

42

42.0

Female

58

58.0

Total

100

100.0

Figure 5.5 Gender Profile of the respondents

58% of the respondents at the Pharmaceuticals & Personal care stores are Females and 42% of the respondents are Male.

5.1.2.4 Income level of the respondents

Income level

Frequency

Percent

Less than 10k

7

7.0

10k-30k

20

20.0

30k-50k

39

39.0

More than 50k

34

34.0

Total

100

100.0

Figure 5.6 Income Level of the respondents

Most of the respondents at the Pharmaceuticals & personal care stores were in the income group of 30k-50k (39%) per month.

5.1.3 Restaurants

5.1.3.1 Descriptive Statistics

Statements

N

Minimum

Maximum

Mean

Std. Deviation

Quality of food

99

3.00

5.00

4.3939

.61971

Taste of food

99

3.00

5.00

4.2222

.63174

Hygiene

99

2.00

5.00

4.0707

.62682

Good food menu

99

3.00

5.00

4.1010

.56234

Friendliness and courteousness

99

2.00

5.00

4.0000

.65465

Personal Attention

99

3.00

5.00

4.0606

.58586

Cleanliness

99

3.00

5.00

4.0505

.59545

Paan store nearby

99

2.00

5.00

3.9394

.68241

Parking space

99

3.00

5.00

4.1717

.55403

Personal courtesy

99

3.00

5.00

4.0909

.62419

Taste and preferences

99

3.00

5.00

4.0606

.60302

Homely food

99

2.00

5.00

4.0000

.55328

Local ingredients presence

99

3.00

5.00

4.1313

.54672

Good Ambience

99

2.00

5.00

4.0606

.68241

Consistent quality

99

2.00

5.00

4.1010

.59753

Combo meals

99

3.00

5.00

4.1919

.58339

Location of restaurant

99

2.00

5.00

4.1212

.64322

employees customizes food

99

3.00

5.00

4.0606

.60302

Home delivery

99

2.00

5.00

4.1313

.66465

Payment by debit/credit card

99

3.00

5.00

4.1919

.52832

Based on the mean scores calculated for various strategies for Restaurants Quality of food, Taste of food, Home delivery and Hygiene are the most important strategies for the Restaurants.

5.1.3.2 Age Profile of the respondents at Restaurants

Age

Frequency

Percent

Less than 20 years

17

17.2

20-30 years

35

35.4

30-40 years

36

36.4

More than 40 years

11

11.1

Total

99

100.0

Figure 5.7 Age profile of the respondents

Most of the respondents at the restaurants were in the age group of 20-30(35%) & 30-40 years (36%).

5.1.3.3 Gender Profile of the Restaurants respondents

Frequency

Percent

Male

54

54.5

Female

45

45.5

Total

99

100.0

Figure 5.8 Gender profile of the respondents

In the above chart it is clear that most of the respondents in Restaurants were Males(55%) and females were (45%) of the total respondents.

5.1.3.4 Income level of the respondents

Income Level

Frequency

Percent

Less than 10k

19

19.2

10k-30k

22

22.2

30k-50k

38

38.4

More than 50k

20

20.2

Total

99

100.0

Figure 5.9 Income level of the respondents

Most of the respondents at the restaurants are in the Income bracket of 30k-50k(39%) and 21% of the respondents are in the income group of more than 50k.

5.2 Independent Sample t-Test

5.2.1 Strategies Specific to both "Pharmaceuticals and Personal care" stores and "Food and Grocery" Stores- Significant difference between the mean scores

Group Statistics

Type of store

N

Mean

Std. Deviation

Std. Error mean

Quality of products

Pharmaceuticals

100

4.10

.659

.066

Food and Grocery

90

4.51

.525

.055

Assortment of products

Pharmaceuticals

100

4.23

.617

.062

Food and Grocery

90

3.90

.688

.072

Store location

Pharmaceuticals

100

4.11

.618

.062

Food and Grocery

90

3.93

.667

.070

Home Delivery

Pharmaceuticals

100

3.98

.586

.059

Food and Grocery

90

4.16

.652

.069

Personal courtesy

Pharmaceuticals

100

4.13

.562

.056

Food and Grocery

90

3.87

.622

.066

Display of products

Pharmaceuticals

100

4.21

.640

.064

Food and Grocery

90

3.80

.640

.064

Advice provided by shopkeeper

Pharmaceuticals

100

4.06

.583

.058

Food and Grocery

90

3.84

.559

.059

Layout of store

Pharmaceuticals

100

4.23

.664

.066

Food and Grocery

90

3.86

.610

.064

Independent sample t-test was conducted to find out the strategies which are Generic and specific to both the stores. Out of the 20 strategies Pharmaceuticals & Personal care and Food & Grocery stores, 15 common strategies were used for independent sample t-test.

Independent sample Test

Factors

t-test for Equality of Means

T

Df

Sig. (2-tailed)

Quality of Products

-4.779

185.298

.000

Assortment of Products

3.466

179.833

.001

Store Location

1.887

181.969

.061

Home Delivery

-1.944

179.919

.053

Personal courtesy

3.049

180.398

.003

Display of products

4.543

187.594

.000

Advice provided by shopkeeper regarding product

2.600

187.227

.010

Familiarity with store layout

4.049

187.921

.000

An independent-samples t-test was conducted to compare different variables under specific strategies for Pharmaceuticals & personal care, and Food & Grocery.

Quality of products- There is a significant difference in the score for Food & Grocery (M= 4.51, S.D=.525) and Pharmaceutical and Personal care (M=4.10, S.D=.659) conditions; t= -4.779, p=.00. These results suggest that Quality of products is more important strategy for Food & Grocery stores.

Assortment of products- There is a significant difference in the score for Pharmaceutical and Personal care (M= 4.23, S.D=.617) and Food and Grocery (M=3.90, S.D=.688) conditions; t= 3.466, p=.001. These results suggest that Assortment of products is more important strategy for Pharmaceutical and Personal care.

Store Location- There is a significant difference in the score for Pharmaceutical and Personal care (M= 4.11, S.D=.618) and Food and Grocery (M=3.93, S.D=.667) conditions; t= 1.887, p=.061. These results suggest that Store location is more important strategy for Pharmaceutical and Personal care.

Home Delivery- There is a significant difference in the score for Food & Grocery (M= 3.98, S.D=.586) and Pharmaceutical and Personal care (M=4.16, S.D=.652) conditions; t= -1.944, p=.053. These results suggest that Home Delivery is more important strategy for Food & Grocery stores.

Personal Courtesy- There is a significant difference in the score for Pharmaceutical and Personal care (M= 4.13, S.D=.562) and Food and Grocery (M=3.87, S.D=.622) conditions; t= 3.049, p=.003. These results suggest that Personal Courtesy is more important strategy for Pharmaceutical and Personal care.

Display of products- There is a significant difference in the score for Pharmaceutical and Personal care (M= 4.21, S.D=.640) and Food and Grocery (M=3.80, S.D=.640) conditions; t= 4.543, p=.000. These results suggest that display of products is more important strategy for Pharmaceutical and Personal care.

Advice provided by shopkeeper- There is a significant difference in the score for Pharmaceutical and Personal care (M= 4.06, S.D=.583) and Food and Grocery (M=3.84, S.D=.559) conditions; t= 2.600, p=.010. These results suggest that providing advice to the customers is more important strategy for Pharmaceutical and Personal care.

Familiarity with shop layout- There is a significant difference in the score for Pharmaceutical and Personal care (M= 4.23, S.D=.664) and Food and Grocery (M=3.86, S.D=.610) conditions; t= 4.049, p=.000. These results suggest that Shop layout is more important strategy for Pharmaceutical and Personal care.

5.2.2 Strategies Generic to both "Pharmaceuticals and Personal care" stores and "Food and Grocery" Stores- No significant difference between the mean scores

Group Statistics

Factors

Type of store

N

Mean

Std. deviation

Std. Error

mean

Variety of products

Pharmaceuticals

100

4.20

.636

.064

Food and Grocery

90

4.23

.562

.059

Store appearance and atmosphere

Pharmaceuticals

100

4.01

.643

.064

Food and Grocery

90

3.87

.640

.067

knowing my tastes and

preference

Pharmaceuticals

100

3.94

.633

.063

Food and Grocery

90

3.94

.625

.066

Faster Billing

Pharmaceuticals

100

3.98

.651

.065

Food and Grocery

90

3.83

.691

.073

Searching for products in a store

Pharmaceuticals

100

4.04

.634

.064

Food and Grocery

90

3.89

.644

.068

paying attention to my demand

Pharmaceuticals

100

4.03

.627

.063

Food and Grocery

90

4.00

.618

.065

Mobile Recharge

Pharmaceuticals

100

4.00

.682

.068

Food and Grocery

90

3.93

.596

.063

Independent sample test

Factors

t-test for Equality of Means

T

df

Sig. (2-tailed)

Variety of products

-.381

188

.704

Store appearance and atmosphere

1.538

188

.126

Taste preference

-.049

188

.961

Faster Billing

1.506

188

.134

Searching for products in the store

1.628

188

.105

Shopkeeper paying attention to my demand

.332

188

.741

Mobile Recharge

.714

188

.476

An independent-samples t-test was conducted to compare different variables under specific strategies for Pharmaceuticals & personal care, and Food & Grocery.

Variety of Products- There is no significant difference in the score for Pharmaceutical and Personal care (M= 4.20, S.D=.636) and Food and Grocery (M=4.23, S.D=.562) conditions; t(188)= -3.81, p=.704. These results suggest that Variety of products is a generic strategy for both the stores.

Store appearance and atmosphere- There is no significant difference in the score for Pharmaceutical and Personal care (M= 4.01, S.D=.643) and Food and Grocery (M=3.87, S.D=.640) conditions; t(188)= 1.538, p=.126. These results suggest that store appearance and atmosphere is a generic strategy for both the stores.

Knowing Taste & Preferences of customers- There is no significant difference in the score for Pharmaceutical and Personal care (M= 3.94, S.D=.625) and Food and Grocery (M=3.94, S.D=.633) conditions; t(188)= -.049, p=.961. These results suggest that knowing taste and preferences of customer is a generic strategy for both the stores.

Faster Billing- There is no significant difference in the score for Pharmaceutical and Personal care (M= 3.98, S.D=.651) and Food and Grocery (M=3.83, S.D=.691) conditions; t(188)= 1.506, p=.134. These results suggest that faster billing is a generic strategy for both the stores.

Searching for products in the store- There is no significant difference in the score for Pharmaceutical and Personal care (M= 4.04, S.D=.634) and Food and Grocery (M=3.89, S.D=.644) conditions; t(188)= 1.628, p=.105. These results suggest that Variety of products is a Ease of search for customers is a generic strategy for both the stores.

Attention to demands of customer- There is no significant difference in the score for Pharmaceutical and Personal care (M= 4.03, S.D=.627) and Food and Grocery (M=4.00, S.D=.618) conditions; t(188)= .332, p=.741. These results suggest that paying attention to the demands of customers is a generic strategy for both the stores.

Mobile recharge- There is no significant difference in the score for Pharmaceutical and Personal care (M= 4.00, S.D=.682) and Food and Grocery (M=3.93, S.D=.596) conditions; t(188)= .714, p=.476. These results suggest that Variety of products is a generic strategy for both the stores.

5.3 Factor analysis for Specific strategies identified for both Pharmaceuticals & personal care and Food & Grocery stores

5.3.1 Pharmaceutical and Personal care

Reliability Statistics

Cronbach's Alpha

N of Items

.748

8

Cronbach alpha for the 8 variables was .748. Cronbach value of above .70 is reliable to conduct factor analysis.

Factor Analysis

Rotated Component Matrix

Component

1

2

Quality of products

.378

.474

Assortment of products

.599

.048

Store location

.693

.109

Home Delivery of products

-.525

.601

Personal courtesy

.148

.649

Display of products

.125

.505

Advice provided by shopkeeper

.549

.347

Layout of store

.659

.173

Total

2.031

1.426

% of Variance

25.385

17.821

Cumulative %

25.385

43.206

Based upon the factor analysis conducted on the specific strategies for Pharmaceuticals & Personal care stores, 8 statements relating to attributes of Pharmaceutical and personal care stores were factor analyzed using principal component analysis with varimax rotation. The analysis yielded two factors explaining 43.20% of the variance for the entire set of variables.

Naming of Factors

S. no.

Factors

Statements

Loading

Cronbach Alpha

1

Store characteristics

Store Location

Layout of store

Assortment of products

Advice provided by shopkeeper

.693

.659

.599

.549

.674

2

Ease of shopping

Personal courtesy

Display of products

Home Delivery

Quality of products

.649

.601

.505

.474

.580

Based on the factor loadings in the first component Factor 1 was named as Store characteristics (Cronbach value= .674) due to the high loadings by the following items: Store location, Layout of store, Assortment of products, Advice provided by shopkeeper. This first factor explained 26% of the variance. The second factor identified was labeled as Ease of shopping (Cronbach value= .580) due to the high loadings by the following items: Personal courtesy, Display of products, Home delivery, Quality of products. This factor explained 17% of the total variance.

This analysis means that two clear patterns of response among the respondents have been identified. One pattern based on the Store characteristics and other on the basis of Ease of shopping in the store. Both these factors identified are independent of each other.

5.3.2 Food and Grocery

Reliability Statistics

Cronbach's Alpha

N of Items

.727

8

Cronbach alpha for the 8 variables was .727. Cronbach value of above .70 is reliable to conduct factor analysis.

Factor Analysis

Rotated Component Matrix

Component

1

2

Quality of products

.769

.307

Assortment of products

.770

.109

Store location

.641

.258

Home Delivery of products

-.287

.643

Personal courtesy

.761

-.086

Display of products

.290

.644

Advice provided by shopkeeper

.688

.060

Layout of store

.337

.584

Total

2.927

1.353

% of Variance

36.588

16.911

Cumulative %

36.588

53.499

Based upon the factor analysis conducted on the specific strategies for Food & Grocery stores, 8 statements relating to attributes of Food & Grocery stores were factor analyzed using principal component analysis with varimax rotation. The analysis yielded two factors explaining 53.50% of the variance for the entire set of variables.

Naming of Factors

S. No.

Factors

Statement

Loading

Cronbach Alpha

1

Store Characteristics

Assortment of products

Quality of Products

Personal Courtesy

Advice provided by shopkeeper

Store Location

.770

.769

.761

.688

.641

.799

2

Ease of shopping

Display of Products

Home Delivery

Store layout

.644

.643

.584

.482

Based on the factor loadings in the first component Factor 1 was named as Store characteristics (Cronbach value= .799) due to the high loadings by the following items: Assortment of products, Advice provided by shopkeeper, Quality of products, Personal courtesy, Store location. This first factor explained 36% of the variance. The second factor identified was labeled as Ease of shopping (Cronbach value= .482) due to the high loadings by the following items: Display of products, Home delivery, Store layout. This factor explained 17% of the total variance.

This analysis means that two clear patterns of response among the respondents have been identified. One pattern based on the Store characteristics and other on the basis of Ease of shopping in the store. Both these factors identified are independent of each other.

5.4 Factor analysis for Generic Strategies of "Food and Grocery" and "Pharmaceuticals and Personal care"

5.4.1 Food and Grocery

Reliability Statistics

Cronbach's Alpha

N of Items

.733

7

Cronbach alpha for the 7 variables was .733. Cronbach value of above .70 is reliable to conduct factor analysis.

Factor Analysis

Rotated Component Matrix

Component

1

2

Variety of products

.722

.171

Store appearance and atmosphere

.117

.744

knowing my tastes and preference

.806

.074

Faster Billing

.682

.142

Searching for products in a store

.022

.842

paying attention to my demand

.757

.126

Mobile recharge

.332

.573

Total

2.333

1.661

% of Variance

33.331

23.727

Cumulative %

33.331

57.057

Based upon the factor analysis conducted on the generic strategies for Food & Grocery stores, 7 statements relating to attributes of Food & Grocery stores were factor analyzed using principal component analysis with varimax rotation. The analysis yielded two factors explaining 57.05% of the variance for the entire set of variables.

Naming of Factors

S. No.

Factors

Statement

Loading

Cronbach Alpha

1

Personal attention

Knowing my taste and preference

Paying attention to my demand

Variety of Products

Faster Billing

.806

.757

.722

.682

.747

2

In-store experience

Searching for products in a store

Store appearance and atmosphere

Mobile recharge

.842

.744

.573

.592

Based on the factor loadings in the first component Factor 1 was named as Personal attention (Cronbach value= .747) due to the high loadings by the following items: Knowing my taste and preference, Paying attention to my demand, Variety of products and Faster billing. This first factor explained 33% of the variance. The second factor identified was labeled as In-store experience (Cronbach value= .592) due to the high loadings by the following items: Searching for products in a store, Store appearance and atmosphere and Mobile recharge. This factor explained 24% of the total variance.

This analysis means that two clear patterns of response among the respondents have been identified. One pattern based on the Personal attention and other on the basis of In-store experience in the store. Both these factors identified are independent of each other.

5.4.2 Pharmaceuticals and Personal care

Reliability Statistics

Cronbach's Alpha

N of Items

.778

7

Cronbach alpha for the 7 variables was .778. Cronbach value of above .70 is reliable to conduct factor analysis.

Rotated Component matrix

Component

1

2

Variety of products

-.003

.763

Store appearance and atmosphere

.621

.366

knowing my tastes and preference

.199

.779

Faster Billing

.734

-.117

Searching for products in a store

.530

.314

paying attention to my demand

.631

.032

Mobile recharge

.519

.343

Total

1.913

1.555

% of Variance

27.328

22.212

Cumulative %

27.328

49.539

Based upon the factor analysis conducted on the generic strategies for Pharmaceutical & Personal care stores, 7 statements relating to attributes of Food & Grocery stores were factor analyzed using principal component analysis with varimax rotation. The analysis yielded two factors explaining 49.53% of the variance for the entire set of variables.

Naming of Factors

S. No.

Factors

Statement

Loading

Cronbach Alpha

1

In-store Experience

Faster Billing

Paying attention to my demand

Store appearance and atmosphere

Searching for products in a store

Mobile Recharge

.734

.631

.621

.530

.519

.575

2

Personal Attention

Knowing my taste and preference

Variety of products

.779

.763

.598

Based on the factor loadings in the first component Factor 1 was named as In-store experience (Cronbach value= .575) due to the high loadings by the following items: Faster Billing, Paying attention to my demand, Store appearance and atmosphere, Searching for products in a store and Mobile recharge. This first factor explained 28% of the variance. The second factor identified was labeled as Personal Attention (Cronbach value= .598) due to the high loadings by the following items: Knowing my tastes and preference and Variety of products. This factor explained 23% of the total variance.

This analysis means that two clear patterns of response among the respondents have been identified. One pattern based on the Personal attention and other on the basis of In-store experience in the store. Both these factors identified are independent of each other.

5.5 Regression Analysis for Food & Grocery ( Generic and Specific strategies)

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.572a

.328

.296

.49086

ANOVA

Model

Sum of Squares

df

Mean Square

F

Sig.

Regression

9.976

4

2.494

10.351

.000a

Residual

20.480

85

.241

Total

30.456

89

Coefficients

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

(Constant)

.247

.639

.386

.701

Store Characteristics(Specific)

-.053

.164

-.042

-.326

.745

Ease of Shopping(Specific)

.275

.143

.188

1.925

.058

Personal attention(Generic)

.297

.142

.240

2.088

.040

In-store experience (Generic)

.455

.139

.361

3.264

.002

Regression analysis was used to report if the successful strategies significantly predicted participants overall satisfaction. Successful strategies significantly predicted overall satisfaction of the respondents.

R2= .328, F(4,85)=10.351, P<.001

So, we reject our H0 at p value less than .000.

Thus our H1 is accepted- There is a significant impact of successful strategies on the overall satisfaction of customers in the food and grocery stores.

5.6 Regression Analysis for Pharmaceuticals and Personal care (Generic and Specific strategies)

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.472a

.223

.190

.57059

ANOVA

Model

Sum of Squares

df

Mean Square

F

Sig.

Regression

8.861

4

2.215

6.804

.000

Residual

30.929

95

.326

Total

39.790

99

Coefficients

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

B

Std. Error

Beta

(Constant)

.271

.824

.329

.743

Layout & location

.427

.152

.285

2.803

.006

Courtesy & display

.164

.181

.091

.909

.366

Personal attention

.326

.169

.213

1.931

.056

Variety & offerings

.019

.121

.016

.160

.873

Regression analysis was used to report if the successful strategies significantly predicted participants overall satisfaction. Successful strategies significantly predicted overall satisfaction of the respondents.

R2= .223, F(4,95)=6.804, P<.001

So, we reject our H0 at p value less than .001.

Thus our H1 is accepted- There is a significant impact of successful strategies on the overall satisfaction of customers in the Pharmaceutical and personal care store.

5.7 Restaurant Data Analysis and Interpretation

5.7.1 Factor Analysis

Reliability Statistics

Cronbach's Alpha

N of Items

.855

20

Cronbach alpha for the 20 variables was .855. Cronbach value of above .70 is reliable to conduct factor analysis.

Rotated Component Matrix

Component

1

2

3

4

5

Quality of food

.501

.321

.222

.246

.184

Taste of food

.457

.162

.279

.410

-.020

Hygiene

-.002

.209

.385

.267

.467

Good food menu

-.011

.253

-.063

.095

.713

Friendliness and courteousness

.090

.173

.783

-.008

-.040

Personal Attention

.345

-.105

.416

.154

.308

Cleanliness

.073

.711

-.032

.106

.228

Paan store nearby

.587

-.065

.186

-.148

.469

Parking space

-.126

-.045

.664

.195

.344

Personal courtesy

.292

.237

.084

.692

.019

Taste and preferences

.165

.233

-.007

.225

.487

Homely food

-.070

.706

.170

.279

.066

Local ingredients presence

.654

.143

-.180

.174

.089

Good Ambience

.523

.255

.530

.102

-.084

Consistent quality

.420

.492

.030

.061

.099

Combo meals

.344

-.288

.144

.476

.367

Location of restaurant

.329

.617

.157

-.004

.127

employees customizes food

.261

.059

.338

.042

.599

Home delivery

.148

.183

.269

.591

.213

Payment by debit/credit card

-.059

.065

-.039

.680

.114

Total

2.267

2.231

2.126

2.095

2.081

% of Variance

11.333

11.156

10.632

10.477

10.405

Cumulative %

11.333

22.489

33.121

43.598

54.003

Based upon the factor analysis conducted on the Strategies for Restaurants, 20 statements relating to attributes of Restaurants were factor analyzed using principal component analysis with varimax rotation. The analysis yielded five factors explaining 54.00% of the variance for the entire set of variables.

Naming of Factors

S. No.

Factors

Statement

Loading

Cronbach Alpha

1

Ingredients and quality of food

Local Ingredients

Paan store nearby

Quality of food

Taste of food

.654

.587

.501

.457

.624

2

Cleanliness and location

Cleanliness

Homely food

Location of restaurant

Consistent quality

.711

.706

.617

.492

.679

3

Friendliness of employees

Friendliness

Parking space

Good ambience

Personal attention

.783

.664

.530

.416

.639

4

Personal Attention

Personal courtesy

Payment by Credit/Debit card

Home Delivery

Combo meals

.692

.680

.591

.476

.641

5

Offerings

Good Menu

Customized food

Taste and preferences

Hygiene

.713

.599

.487

.467

.618

Based on the factor loadings in the first component Factor 1 was named as Ingredients and Quality of food (Cronbach value= .624) due to the high loadings by the following items: Local ingredients, Paan store nearby, Quality of food, Taste of food. This first factor explained 11% of the variance. The second factor identified was labeled as Cleanliness and location (Cronbach value= .679) due to the high loadings by the following items: Cleanliness, Homely food, Location of restaurant, Consistent quality. This factor explained 11% of the total variance. The third factor identified was labeled as Friendliness of employees (Cronbach value= .639)due to the high loading of the following items: Friendliness, Parking space, good ambience, Parking space, Personal attention. This factor also explained 11% of the total variance. The fourth factor identified was labeled as Personal Attention (Cronbach value= .641)due to the high loading of the following items: Personal courtesy, Payment by Debit/ Credit, Home delivery, Combo meals. This factor also explained 11% of the total variance. The Fifth factor identified was labeled as Offerings (Cronbach value= .618)due to the high loading of the following items: Good menu, Customized food, Taste and Preferences, Hygiene.. This factor explained 10% of the total variance.

This analysis means that Five clear patterns of response among the respondents have been identified. All these factors identified are independent of each other.

5.7.2 Regression Analysis of Restaurant

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.441a

.194

.151

.51746

ANOVA

Model

Sum of Squares

df

Mean Square

F

Sig.

Regression

6.007

5

1.201

4.487

.001a

Residual

24.902

93

.268

Total

30.909

98

Coefficie