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INFLUENCE OF DEMOGRAPHIC, PSYCHOGRAPHIC

AND GEOGRAPHIC FACTORS ON THE

BEHAVIORAL PATTERN OF CONSUMERS

TOWARDS THE ORGANIZED RETAIL OUTLETS IN

THE TWIN CITIES OF HYDERABAD &

SECUNDERABAD - A REVIEW

Dr. Reshma Nikhat1

1 Asst Prof, MANUU, Gachi Bowli Hyderabad.

ABSTRACT

Times have changed, gone are the days when the head of the family used to be the father and the sole decision

maker, female discrimination was there and women were not allowed to go out, now women are equally

important in decision making process. Individual decision making has come into existence. Its really important

to know why ,what, how much ,when and where the consumers buy.In this paper the author has studied factors

which try to highlight the demographic, psychographic and geographic factors effect on the lifestyle and

organized retail outlets as it is an indicator to identify the target market. India is observing a change in life

styles and there is a need to recognize the emerging markets as the market opportunities are in abundance and

huge, foreign firms are entering into the market likewise mergers,acuisitions and takeovers are also possible

.Fragmentation is there no players are winning a huge share and consumers has become a real challenge for

the corporate world especially in creating and managing a powerful brand to have a competitive edge. It

showed that the differences in social classes gives place to varied shopping strategies and generate singular

figurative representations of shopping involvements.

Key words: competitive edge, decision making process. Demographics,lifestyle, type of family.

I. INTRODUCTION

The growth of retail and its development over a period of time has made a drastic change in the life style of the

consumers. As consumer behavior and lifestyles changed, people no longer buy the way they used to. The

evolution of organized retail outlets has emerged as the attitude of the consumers towards the retail format has

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changed : the demography, higher income group ,urbanization ,advent of electronic media, easy availability,

long working hours, parking facility, skilled labour ,home deliveries ,apps have compelled the customer to

change their minds . Strength of any organization is its people. if people are attended to properly by recognizing

their talents, organizations are likely to be dynamic and grow fast. The social networking sites has changed the

behaviour.2 The consumption pattern among Indians for consumer durables and kitchen appliances is still

largely need-driven. According to Amandeep India’s FMCG sector is the fourth largest sector in the economy

and creates employment for more than three million people in downstream activities. The share of organized

retail is estimated to be 20% by 2020.

1.1 Importance : This study serves as the basis for various other features of retailing in future

and contributes to the basis of retail spending among corporate houses.

II.RESEARCH METHODOLOGY

2.1.Primary and secondary sources of data were used to collect the information .Structured questionnaire and

observation techniques were the primary techniques and online and offline sources including books, journals

and newspapers were secondary sources.

Sampling: convenience sampling method was used and a population of 670 was used to survey a selected retail

outlets.

2.1.1. Sampling Plan: after deciding about research approach and instrument the decision was taken to cover for

the following areas.

2.1.2. Sampling unit: All the member of the family were interviewed, both husband and wives were interviewed,

respondents with different educational qualifications were interviewed.

2.1.3. Sampling Size: Large samples give more reliable data and reliability was there in this study as in-depth

study is done for the analysis of the behavioural pattern of consumers in the organized retail outlets, recent

trends and the development in the retailing sector.

Table 1. Sample size determinations

Population

Margin of Error Confidence Level

10% 5% 1% 90% 95% 99%

100 50 80 99 74 80 88

2 Nuzhat Jahan ,thesis on Perception of Performance appraisal in the public and private telecom companies

,Osmania university ,2014

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500 81 218 476 176 218 286

1,000 88 278 906 215 278 400

10,000 96 370 4,900 264 370 623

100,000 96 383 8,763 270 383 660

1,000,000+ 97 384 9,513 271 384 664

By population we mean the entire set of people that we want to understand, the research sample is going to be

from the population who end up actually taking our survey. The sample size determination for the population is

infinity for1000,000(10 lakh) population the sample size taken at 95 % confidence level is 384 and 20% of it

for accuracy is 76.8 and for the population of twin cities which is around 8700000 (87 lakhs)it is 384*.20

=76.8,76.8 *8.7=668 so rounding it is 670.Target population: Visitors of shopping malls. Sampling unit:

Individual.Sampling technique: Simple random sampling. Sample size:670 numbers. Place: Hyderabad &

Secunderabad malls.

2.2 Objectives of the Study.

To study the geographic profile of the consumers in the organized retail outlets.

To study the demographic profile of the consumers in the organized retail outlets.

To study the psychographic profile of the consumers in the organized retail outlets.

2.3 Hypotheses.

H₁::Behaviour is similar in both the gender(male and female )sample respondents.

H₂: Behaviour is similar in all age groups.

H₃: There is no association between disposable income and the gender.

H₄: There is no association between disposable income and the education.

H5: There is no association between disposable income and the occupation .

2.4. Review of Literature

Afzal saifi and Kamalun Nabi Mohd felt that due to the changing demographics, increase in income, rapid

urbanization and advent of electronic media especially internet as a source of product information , customers

preferred to purchase from organized outlets because of variety, easy availability convenient shopping timings,

cleanliness and facility of entertainment for children, it is also observed that unlike higher age group sample

respondents who prefer to visit Kirana stores ,the younger generation.

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According to Corinne Nell wild ,the changing patterns of consumers, apparel retailers are facing competition

from alternative channels such as the internet where they see, compare and purchase products for brick and

mortar retailers it has become critical to reconsider the principles and practice of in store consumer engagement

in order to ensure sales optimisaton,customer satisfaction and profitability.

According to Katole Hemant (2011) the shopping experience at malls is worthy and less time consuming,

considering the retailers and the consumer’s point of view, it is inferred that most of the problems are due to

overcrowding and these problems can be resolved to some extent by implementing new technologies.

Manoj Verghese and Pooja luniya felt that price form of promotion influences impulse buying among

consumers TPR is the major tool.

AccordingtoMumtazJingFengjieandNaveedAkhtercustomer behaves differently at the timeof purchasing goods/s

ervicesasitdependsonnumberoffactors such as family structure, country of origin, age, culture, and advertising h

ave an impact on an individual’s way of thinking and ultimately on consumers decision making process, where

as price is associated to product.

According to Pratiyush and Satish The economic environment has changed and retailers are not confident of

developer’s ability to get enough foot all,and dont like to be the first to test the water and wait to understand the

synergy with other tenants before stopping into a mall.

Nisobian Fistus felt that there exist significant relationships between customer satisfaction , loyalty, customer

patronage and customer retention. Therefore firms are advised to satisfy and better manage their relationships

through quality product and service offerings as a competitive policy in the marketplace.

R.P.C.P.Rajaram has studied that consumer plays a major in the development of retail sector. And due to the

heavy competition, technological advances and continuously changing consumer purchase preferences due to

the various factors like change in lifestyle, social status, made the organized retailers to focus more on their

marketing strategies in order meet the growing consumer demand and gain high customer satisfaction.

According to Rohit Kumar Mishra the rapid growth of retailing in recent years and upcoming many new firms

in India has necessitated for benchmarking and concern about the available resources and their optimum

utilization with respect to consumers’ need and preference.

Sin, chow (2003) and sin and cheung (2001) examined the service quality of a retail shop and inferred that

things are made available in one shop, at one placeand, consumer buying is not mere transfer of item from seller

to buyer. Consumer wants buying to become a happy affair.

Shwu-Ing Wu’s (2003) study on the relationship between consumer characteristics and attitude toward online

shopping and Walsh and Mitchell’s (2004) research on investigating demographic characteristics of the

consumers who experience difficulty in making their buying decisions.

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III. DATA ANALYSIS

Mean standard deviation ,variance and chi-square test is used to infer the details of the consumers.

3.1.Interpretation: Demographic Profile of consumers or Respondents. Mean, standard deviation and variance

are calculated to see the samples average, and the variance in the demographic profile.

TABLE 2 DESCRIPTIVE STATISTICS

Variables N Min Max Mean Std. Dev Var

Gender 670 1.00 2.00 1.4149 .49308 .243

Age 670 1.00 5.00 2.8612 1.24687 1.555

Education status 670 1.00 5.00 2.1433 0.83840 .703

Marital status 670 1.00 3.00 1.7254 0.44999 .202

Occupation 670 1.00 8.00 3.0254 2.06420 4.261

Income 670 1.00 5.00 2.7881 1.46300 2.140

Spending amount 670 1.00 4.00 2.6030 1.14716 1.316

Family size 670 1.00 6.00 3.2582 1.52131 2.314

Earning member 670 1.00 3.00 1.5925 .51257 .263

Type of family 670 1.00 2.00 1.5104 .50026 .250

Valid n (list wise) 670

The table above gives the descriptive statistics of the demographic profile of the consumers in the retail outlets.

Maximum is the mean for family size with a score 3.2582,standard deviation of 1.52131 and explaining

variance with a score of 2.314,occupation is the second highest with a mean of 3.0254 standard deviation of

2.0642 and explaining a variance of 4.261,age has a mean of 2.8612, standard deviation of 1.245 and a

variance of 1.555 likewise from the analysis the mean found with other variables was in between1 and 1.5

standard deviation of 1.5 and a variance of 0.7 to 0.5, income has a mean of 2.7881, standard deviation of

1.4630 and variance of 2.140, gender is 1.4149 standard deviation is 0.49308 and variance is explained with

0.243. Marital status has a mean of 1.7254, standard deviation of 0.44999 and variance of 0.202.

The next technique used is the Chi Square Technique which is used to test hypothesis of the discrete data that

can be nominal or ordinal the frequencies and the percentages are useful for the analysis of the data.

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TABLE 3. DISPOSABLE INCOME AND GENDER

Gender * Disposable income Cross tabulation

Disposable income Total

below 1000 1001-2000 2001-3000 3000 and

above

Gen

der

1 Count 84(21%) 130(33%) 17(4%) 161(41) 392(%)

Exp Count 90.1 96.0 85.4 120.5 392

2 Count 70(25%) 34(12%) 129(46%) 45(16%) 278(41%)

Exp Count 63.9 68.0 60.6 85.5 278(%)

Total Count 154(%) 164(%) 146(%) 206(%) 670(%)

Exp Count 154.0 164.0 146.0 206.0 670

Demographic Profile

1. Disposable Income and Male: Majority of the male respondents 41% are in the disposable income group of

Rs 3000.

2. Disposable Income and Female: Majority of the female respondents 46% is in the disposable income group of

Rs 2001 to 3000.In order to understand whether disposable income is independent of gender, the χ2 test is

conducted.

Chi-Square Tests

Value df Asymp. Sig. (2-sided

Pearson Chi-Square 194.953a 3 .000

Since the χ2 value is found to be significant the null hypothesis is rejected and the alternative hypothesis is

accepted, meaning there by that the Disposable income is dependent of Gender.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .539 .000

Cramer's V .539 .000

H#:) The null hypothesis of no association is rejected indicated that the association is significant at the 0.05

level of significance. There is a significant relation between the Disposable income and the gender.

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TABLE 4 DISPOSABLE INCOME AND EDUCATION

Education status * Disposable income Cross tabulation

Disposable income Total

below1000 1001-2000 2001-3000 3000- above

Educa

tion

status

secon

dary

Count 59(43%) 17(13%) 50(37%) 10(7.3%) 136(20%)

Exp Co 31.3 33.3 29.6 41.8 136.

gradu

ation

Count 57(16%) 128(36%) 72(20%) 101(28%) 358(53%)

Exp Co 82.3 87.6 78.0 110.1 358.

P.G Count 36(30%) 14(11%) 22(18%) 50(41%) 122(18%)

Exp Co 28.0 29.9 26.6 37.5 122

profe

ssion

al

Count 0(000%) 5(.10%) 2(3%) 45(87%) 52(0.7%)

Exp Co 12.0 12.7 11.3 16 52

any

other

Cont 2(100%) 0(0%) 0(0%) 0(0%) 2

Exp Co .5 .5 .4 .6 2

Total Count 154(%) 164(%) 146(%) 206(%) 670(100%)

Exp Co 154 164 146 206 670

In order to understand whether Disposable income is independent of Education, the χ2 test is conducted.

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 197.677a 12 .000

Since the χ2 value is found to be significant the null hypothesis is rejected and the alternative hypothesis is

accepted, meaning there by that the Disposable income is dependent of Education.

Symmetric Measures

Value Approx. Sig.

Nominal by Nominal Phi .543 .000

Cramer's V .314 .000

N of Valid Cases 670

H#:) The null hypothesis of no association is rejected, indicated that the association is significant at the 0.05

level of significance. There is significant relation between the education and disposable income.

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TABLE 5 OCCUPATION AND DISPOSABLE INCOME

Occupation * Disposable income Cross tabulation

Disposable income Total

below 1000 1001-2000 2001-3000 3000-above

O

cc

up

ati

on

student Count 118(43%) 16(5%) 62(22%) 81(29%) 277(41%)

Exp count 63.7 67.8 60.4 85.2 277.0

unemploy

ed

Count 14(78%) 2(11%) 0(0%) 2(11%) 18(2.5%)

Exp Count 4.1 4.4 3.9 5.5 18.0

executive Count 4(6.5%) 2(3%) 69(90%) 2(3%) 77(12%)

Exp count 17. 7 18.8 16.8 23.7 77.0

profession

al

Count 2(1%) 68(41%) 14(8%) 83(50%) 167(25%)

Exp Count 38.4 40.9 36.4 51.3 167.0

housewife Count 6(11%) 32(59%) 0(0%) 16(30%) 54(%)

Exp Count 12.4 13.2 11.8 16.6 54.0

Businessm

en

Count 0(0%) 27(96%) 1(4%) 0(0%) 28(8%)

Exp Count 6.4 6.9 6.1 8.6 28.0

Servicema

n

Count 0(0%) 0(0%) 0(0%) 15(100%) 15(2%)

Exp Count 3.4 3.7 3.3 4.6 15.0

others Count 10(30 %) 17(50%) 0(0%) 7(26%) 34(5%)

Exp Count 7.8 8.3 7.4 10.5 34.0

Total Count 154(%) 164(%) 146(%) 206(%) 670(100%)

Exp Count 154.0 164.0 146.0 206.0 670.0

Disposable Income and Occupation :In order to understand whether Disposable Income is independent of

Occupation, the χ2 test is conducted.χ2 dependence is identified.

TABLE 6 CHI SQUARE

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 583.316a 21 .000

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Since the χ2 value is found to be significant the null hypothesis is rejected and the alternative hypothesis is

accepted, meaning there by that the Disposable income is dependent of Occupation.

TABLE 7 SYMMETRIC MEASURES

H# :) the null hypothesis of no association can be rejected, indicated that the association is sig at the 0.05 level

of significance. There is association between the Disposable income and the occupation.Disposable income is

found to be dependent of occupation.

FINDINGS, CONCLUSION AND SUGGESTIONS.

1. 41% of the male respondents are in the disposable income group of Rs.3000,followed by 33% of the male

respondents are in the disposable income group of Rs 1001 to 2000,followed by 21% of the male respondents is

in the disposable income group of below Rs. 1000 and 4% of the male respondents is in the disposable income

group of Rs.2001 to 3000.

2. 46% of the female respondents is in the disposable income group of Rs 2001 to 3000, followed by 25%

female respondents is in the disposable income group of below Rs 1000, followed by 16 % of the female

respondents is in the disposable income group of Rs 3000 and 12 % of the female respondents is in the

disposable income group of Rs.1001 to 2000.

In order to understand whether disposable income is independent of gender, the χ2 test is conducted.Disposable

Income is found to dependent of the Gender.

3. 43% of the female respondents having secondary education is in the disposable income group of below Rs.

1000, followed by 37% of the female respondents having secondary education is in the disposable income group

of Rs. 2001-3000, followed by 13% of the female respondents having secondary education is in the disposable

income group of Rs. 1001-2000 and 7.35% of the female respondents having secondary education is in the

disposable income group of above Rs. 3000.

4. 36 % of the female respondents that are graduates is in the disposable income group of Rs 1001-2000,

followed by 28% of the female respondents are graduates is in the disposable income group of Rs 3000,

followed by 20% of the female respondents those are graduates are in the disposable income group of Rs 2001-

3000 and followed by16 % of the female respondents that are graduates is in the disposable income group of

below Rs 1000.

5.41% of the respondents are postgraduates and is in the disposable income group of Rs.3000. Followed by 30%

of the respondents are postgraduates is in the disposable income group of below Rs.1000, followed by 18 % of

Value Approx. Sig.

Nominal by Nominal Phi .933 .000

Cramer's V .539 .000

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the respondents are postgraduates is in the disposable income group of Rs 2001 to 3000 and 11 % of the

respondents are postgraduates is in the Disposable Income group of Rs 1001to 2000.

6. 87 % of the respondents are Professionals is in the disposable income group of Rs.3000,followed by 10 % of

the respondents are Professionals is in the disposable income group of Rs 1001-2000,followed by 3.5 % of the

respondents are Professionals is in the disposable income group of Rs 2001-3000 and 0 % of the respondents are

Professionals is in the disposable income group of below Rs 1000.

7. Almost all ,100 % of the respondents are from other areas not covered in the list of the survey is in the

disposable income group of below Rs.1000,followed by 0 % of the respondents are from other areas not covered

in the list of the survey is in the disposable income group of Rs.3000 and above, followed by 0 % of the

respondents are from other areas not covered in the list of the survey is in the disposable income group of

Rs.1001to 2000 and 0% of the respondents are from other areas not covered in the list of the survey is in the

disposable income group of Rs. 2001-3000 .

In order to understand whether Disposable income is independent of Education, the χ2 test is conducted.

Disposable Income is found to be dependent of the Education.Disposable Income and Occupation

8. 43% of the respondents are students with the Disposable Income group of below Rs.1000,followed by 29% of

the respondents that are students in the Disposable Income group of above Rs 3000,followed by 22% of the

respondents that are students is in the Disposable Income group of Rs 2001-3000 and 5% of the respondents

that are students is in the Disposable Income group of Rs 1001to 2000.

9. 79 % of the respondents are unemployed in the disposable income group of below Rs. 1000, followed by 11%

of the respondents are unemployed in the disposable income group of Rs 1001-2000, followed by 10 % of the

respondents are unemployed is in the disposable income group of above Rs 3000 and 0%, of the respondents are

unemployed is in the Disposable Income group of Rs 2001-3000.

10.90% of the respondents are executives in the Disposable Income group of Rs 2001-3000.Followed by 6% of

the respondents are executives, is in the Disposable Income group of below Rs 1000, followed by 2% of the

respondents are executives, is in the Disposable Income group of Rs 1001-2000 and 2% of the respondents are

executives, is in the Disposable Income group of above Rs 3000.

11.50% of the respondents are professionals is in the Disposable Income group of above Rs.3000, followed by

41% of the respondents are professionals is in the Disposable Income of Rs.1001-2000 and are professional,

followed by 8% of the respondents are professionals is in the Disposable Income group of Rs.2001-3000 and

1% of the respondents are professionals is in the Disposable Income group of below Rs.1000.

12. 59 % of the respondents are housewives are in the Disposable Income group of Rs.1001-2000, followed by

30% of the respondents are housewives, is in the Disposable Income group of above Rs.3000, followed by 11 %

of the respondents are housewives are in the Disposable Income group of below Rs.1000, followed by 0% of the

respondents are housewives, is in the Disposable Income group of Rs.2001-3000.

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13. 96% of the respondents are businessmen, is in the Disposable Income group of Rs. 1001-2000, followed by

4% of the respondents are businessmen is in the Disposable Income group of Rs. 2001-3000, followed by 0% of

the respondents are businessmen is in the Disposable Income group of above Rs. 3000 and 0 % of the

respondents are businessmen are in the Disposable Income group of below Rs. 1000.

14. 100 % of the respondents are servicemen, is in the Disposable Income group of above Rs.3000, followed by

0% of the respondents are servicemen is in the Disposable Income group of below Rs.1000 and 0% of the

respondents are servicemen is in the Disposable Income group of Rs.1001-2000and followed by 0% of the

respondents are servicemen, is in the Disposable Income group of Rs. 2001-3000

15. 50 % of the total respondents are from other areas not covered in the list of the survey is in the Disposable

Income group of Rs.1001-2000,followed by 30% of the respondents are from other areas not covered in the list

of the survey is in the Disposable Income group of below Rs.1000,followed by 26 % of the respondents are from

other areas not covered in the list of the survey is in the Disposable Income group of above Rs.3000 and 0 % of

the respondents are from other areas not covered in the list of the survey is in the Disposable Income group of

Rs. 2001-3000 .

16.The Hypothesis is used to test the demographic profile of the consumers using a five point scale two

variables through the findings it can be suggested that the Disposable income and the gender’s Pearsons chi

square value is less than the sig value the null hypothesis of no association can be rejected, indicated that the

association is sig at the 0.05 level of significance .There is a significant relation between the Disposable income

and the gender. Cramer V which was used for tables larger than 2*2 .its value is obtained by adjusting phi s its

value is.539 Pearsons chi square value is less than the sig value, the null hypothesis of no association can be

rejected, indicated that the association is sig at the 0.05 level of significance .

Also it is suggested with the findings that there is association between the Disposable income and the

occupation Cramer V value is obtained by adjusting phi s its value is.539. Pearsons chi square value is more

than the sig value, the null hypothesis of no association can be rejected, indicated that the association is sig at

the 0.05 level of significance.

There is a significant relation between the Disposable income and the gender, education and the occupation of

the consumers. Therefore it is concluded that the disposable income is associated with the occupation, and the

behavioral pattern of consumers in the organized retail outlets of twin cities of Hyderabad and Secunderabad

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