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199 SUMMERY, CONCLUSIONS AND SUGGESTIONS: CHAPTER SUMMERY: The chapter wise summery has given in brief in following. Chapter I emphasizes the introductory part of the consumption pattern. It explains the concept of consumption and the theories of consumption pattern. It involves the theoretical development of utility and obviously consumption from Adam Smith to Houthekkar. It also elaborates the theoretical approaches to marketing which gives the idea about the product approach to classical approach and so on. It also explains the methodology adopted for the study. Chapter II has taken review of literature regarding consumption pattern, perception of customers of organized retail outlets. It reveals that there is not single study found on city level consumption pattern in Marathwada. There is considerable gap in review of literature and the selected topic for the study. It also elaborates the historical development in retailing and the various forms of organized retail outlets. The Indian organized retail market has in booming condition, even though it has only 5 percent share in total retail trade. It is very low compare to other countries. Segment wise expenditure has changed; clothing and fashionable commodities are preferred by the customers according to resent data. There are very few mall establishments in Aurangabad city compare to Pune and Mumbai. Chapter III gives a brief outlook of Aurangabad city. The demographical introduction has considered with the interpolation of ten year population of the city and the potential buyers of the city. It also discussed about the major players of the organized retailing in
Transcript

199

SUMMERY, CONCLUSIONS AND SUGGESTIONS:

CHAPTER SUMMERY:

The chapter wise summery has given in brief in following.

Chapter I emphasizes the introductory part of the consumption

pattern. It explains the concept of consumption and the theories of

consumption pattern. It involves the theoretical development of utility

and obviously consumption from Adam Smith to Houthekkar. It also

elaborates the theoretical approaches to marketing which gives the idea

about the product approach to classical approach and so on. It also

explains the methodology adopted for the study.

Chapter II has taken review of literature regarding consumption

pattern, perception of customers of organized retail outlets. It reveals

that there is not single study found on city level consumption pattern in

Marathwada. There is considerable gap in review of literature and the

selected topic for the study. It also elaborates the historical development

in retailing and the various forms of organized retail outlets. The Indian

organized retail market has in booming condition, even though it has

only 5 percent share in total retail trade. It is very low compare to other

countries. Segment wise expenditure has changed; clothing and

fashionable commodities are preferred by the customers according to

resent data. There are very few mall establishments in Aurangabad city

compare to Pune and Mumbai.

Chapter III gives a brief outlook of Aurangabad city. The

demographical introduction has considered with the interpolation of ten

year population of the city and the potential buyers of the city. It also

discussed about the major players of the organized retailing in

200

Aurangabad city with detailed profile, organizational setup, and

functional in order to offering (price, value, discount) setup and

management setup. Near about Same kind of organizational setup has

used by all outlets, and offer system also in same manner but not equal

all over. Logistic (supply of commodities from company) is different.

Some used central logistic method and some used mix; central as well

as domestic method.

Chapter IV stressed out the demographical profile of the

customers of organized as well as unorganized retail customer in first

part. It also deals with the preference of the customers’ and the

relationship between the customers and organized retailers. The second

part has analyzed expenditure of customers of organized retail outlets

on commodity basket. The average consumption expenditure has

calculated in this part. Most important part is analyzed in this chapter

i.e. fitting Engel curve theory for estimating the MPC for the customers

of organized and unorganized retail outlet customers. The elasicities

have calculated for ten commodity groups and total of 20commodities

have regressed for fitting Engels theory by the method adopted by

Tiwari and Pujari. Finally, this chapter analyzed saving ratio

(expenditure ratio) for mentioned commodities.

Chapter V is the last chapter which gives the summery of the all

five chapters and deals with the findings, conclusions and suggestions.

201

FINDINGS & CONCLUSIONS:

Following are some major conclusions regarding the

consumption pattern of the customers of organized retail outlet

particularly and unorganized retail outlets in general.

1) The marginal propensity to consume (MPC) reveals that out of

total consumption, 6.5 percent amount of total consumption expenditure

spends on cereals. 7.5 percent spend on milk and milk product

cumulatively, 13 percent on fruit and vegetables and 4.8 percent on

other food commodities and only 1.7 percent oils. Means for total food

item the customers of organized retail outlets are spend 33.5 Percent of

their total expenditure.

2) Remaining 66.5 percent of expenditure has spent on non-food

items. The bifurcation of this is; expenditure on sundry items and

durables is 50.1 percent and 16.4 percent on clothing, footwear and

toilet articles.

3) For the organized retail outlet customer, the elasticities of

commodities consumed by them have been calculated and the results

are classified in to three categories 1) necessary commodities 2) semi

luxurious commodities and 3) luxurious commodities. It has been

observed that commodities like cereals, pulses, oils, sugar, salt &

spices, coffee & tea are the necessary goods. Semi – luxury goods are

the milk, vegetable &fruits, toilet articles, clothing & bedding and

footwear, sundry items, milk products and durables are the luxurious

items for organized retail customers.

4) For the comparison we have covered unorganized retail

outlet’s customers and found that the MPC for food and non-food

items, the unorganized retail outlet customers spend 54.3 percent of

202

total expenditure on food items while remaining 45.7percent on non-

food items. The bifurcation of it like 16.1 percent on staples, 16.4

percent on milk & milk products, on vegetables & fruits 14.5 percent 3

percent on oils and 4.3 percent on other food items.

5) On non-food items, the customers of unorganized retail outlet

spend 45.7percent out of which is near about 33.9 percent expenditure

has been spent on clothing & bedding, and durables and remaining

spend on 11.8 percent on sundry items, Toilet article and footwear.

6) The elasticities for customers of unorganized outlets shows

that the commodities like oils, pulses and other food items are more

essential than other items even the items like cereals, fruit & vegetables

sundry articles are the essential too. The commodities like clothing

&bedding, durables, toilet articles are the luxurious goods.

7) MPC in case of customers of organized retail outlets is found

highest in sundry followed by durables but in case of customers of

unorganized retail outlets it is found in durable goods followed by milk

and milk products and clothing items.

8) MPC in case of customers of organized retail outlets is found

lowest in pulses, edible oil, sugar, coffee & other foods but it is in case

of unorganized retail outlets found lowest in sundry items and followed

by pulses and sugar.

9) The expenditure elasticity analysis shows that in the case of

organized retail outlet customers all commodities except sundry items,

footwear, and durables are the essential.

10) In case of unorganized retail outlets customers all

commodities except clothing &bedding, toilet articles, footwear, milk &

milk products and durables are essential.

203

11) It is interesting finding that clothing and bedding, toilet

articles are the necessary for the customers of organized retail outlets,

turned out to be luxurious commodities for the customers of

unorganized retail outlets.

12) Sundry articles are the luxurious for the customers of

organized retail outlets, turned out to be necessary commodities for the

customers of unorganized retail outlets.

13) We found durables and footwear are luxurious for both kind

outlets customer commonly.

14) The total average monthly consumption expenditure of the

customer of organized retail outlet is near about Rs.8450. This is a sum

of the total amount spent on the all items of the consumption basket i.e.

food items like cereals, pulses, milk, milk products, oils, vegetables

&fruits and other food items like sugar, salt and spices, coffee and etc.

in non-food items like sundry items, footwear, clothing & bedding,

toilet articles, durables.

15) The total average amount spent on cereals is Rs. 743 for per

month, the highest and lowest amount expend on the cereal items are

Rs. 2567 and Rs. 97 respectively for per month. The total average

expenditure on pulses is near about Rs.300 for per month. Highest

amount spent on this group is 3333 and minimum is 37 the total

expenditure on the staples is average of Rs.1240 monthly.

16) Average monthly expenditure on milk and milk product,

fruits & vegetables are Rs.1238 and Rs.1072 respectively. Similarly, for

the oils the customers of organized retail outlets are spend Rs.425 per

month averagely. Additionally, the maximum amount spent on oils is

Rs.970 and minimum is Rs.70 for per month. Rs.240 to Rs.1380 is the

204

range amount which is spends by the customers of organized retail

outlets. The average expenditure on other food items is Rs.677.

17) The total average amount expend on toilet articles is Rs.210,

on sundry items Rs.780, on clothing & bedding it is Rs.772, on

footwear Rs.224 and on durables it is Rs.1247 per month.

18) The total monthly average per capita expenditure of

customers of organized retail outlets on total mentioned (in conclusion

no 14) commodities is near about Rs.2124. and their monthly total

average per capita income is Rs.9116 so their total average expenditure

ratio is 0.23. It means these customers spend only 23 percent amount on

mentioned commodities.

19) The total average monthly per capita income of customers of

unorganized retail outlets is Rs.5651 and total average monthly per

capita expenditure is Rs.1311, so we can calculate the expenditure ratio

for same commodities is 23 percent.

20) The customers of unorganized retail outlet spend more on

food items than non – food items.

21) Only 41.5 percent of the customers of organized retail outlets

spend less than average expenditure. There is more consistency in

expenditure (CV=40.37) than income (CV=64.3) of these customers.

22) In fact, there is no clear cut difference in saving ratio of

customers of organized retail outlet and customers of unorganized retail

outlet. However, the saving ratio rises with the increase in income of

the customers of both kinds of retail stores. Based on regression, we

find that saving decreases with an increase in size of the household in

both, but its more precise about customers of unorganized retail outlets.

205

The organized retail outlet’s customers’ saving ratio has increase with

cut in expenditure.

23) The average family size of Aurangabad city according to

sample study is 4.2. male person is dominant in family by considering

numbers, even though, women are mainly responsible for the shopping

in the organized retail outlets while the 89 percent customers influenced

by their family members while only 11 percent are from friends,

relatives and others. The majority of respondent have posses

considerable good education, there are majority customers having

graduate and post graduate level education.

24) The near about 33 percent of customers are having Rs. 15 to

30 thousand per month family income among the total visitors,

followed by the group of 24 percent having income of Rs 30 to 50

thousand per month . There are 12 per cent families with Rs. 50 to80

thousand per month and only 11 per cent families are having below Rs.

7000. This implies wider income deviation.

25) We have observed that there is positive relation between

income and distance. Secondly, observed that 70 percent family does

not consider the distance as important because of the schemes and

discount, time and other factors.

26) There is association between duration period of visiting and

their regularity. The pitcher is clear about the regularity. In short, we

can say that those who know the stores from very long period they are

regular customer.

27) Among the visitors most of customers visit once, twice and

thrice in a month for shopping quite interesting finding is that

servicemen visits once, twice and thrice in month mostly and

206

businessmen are visits mostly once and twice in week. The servicemen

(CV=76.81) are more consistently visits than business (CV=131.74).

28) The relation between mode of transport and distance is

positive and good relation between these two variables i.e. r = .49. the

customers uses tow wheelers and cars mostly for all distances and the

customer mostly observed comes from below the 2 km.

29) Most of the respondent prefers to buy clothing (34 per cent),

grocery (30 per cent), vegetables (14 per cent), cereals and pulses

(staples) (10 percent), while the 5 per cent of customers prefer to buy

sundry articles and followed by durables in all organized retail outlets.

Particularly in Spencer’s hyper Market grocery and vegetables are

demanded by customers whereas in Vishal Mega Mart, More Mega

Store and Big Bazaar customers prefer clothing, in Sapna Super Market

grocery, in reliance Fresh convenience store vegetables are preferred.

30) Fair prices policies for the customers are used by retail stores

18 percent of customers viewed that the prices are same as other stores

but 11 percent viewed as little higher that of other stores. Only 8

percent said that prices adopted by the modern markets are less than

other.

31) The people prefer to visit to organized retail outlets because

of the well and convenient location of the outlet secondly services

provided by the retailer, thirdly well parking space, fourthly the

decoration of the followed by quality, and lastly promotion schemes

offered by the retailer and the quality of the goods. There is association

the between duration of period of visiting and their regularity. From

long duration the customers are visiting to organized retail outlet and

they shows loyalty for the outlets. Secondly we calculated view about

207

the discounts and found it realty. With the help of chi (x2) square test

for regularity of the customers and their view about the discount we can

conclude that there is friendly relation between the retailer and

customers.

32) The population in Aurangabad city has grown in last decade

(2001-2010) with near about (CAGR) 12 per cent growth rate. While

the growth in retail outlets in Aurangabad city for the four year (2006 -

2009) was 7 percent. And the employment growth in the retail stores in

Aurangabad city was (CAGR) 5.57 for three years (2007-2009).

33) The population shop ratio in Aurangabad city in 2009 is near

about 0.047.

34) There is very quite bit difference in organizational set up of

the organized retail outlet. The hierarchy in Spencer’s and Big Bazaar is

in five steps; from operational head to customers’ service assistant,

whereas in More Mega Store it is functions in four steps. And in Vishal

Mega Mart and it is in four and three steps. Near about same kind of

offers are used by the all organized outlets in Aurangabad city. Flat

discounts, co- concession, value offers, price offers are provided by all

organized outlets. On in matter of logistics; vishal Mega Mart used

central method means the main branch purchases all commodities in

one place and distribute to all branches and outlets. This method has

some economics of scales but the transport cost increases. In other

outlets they used local products and purchase the stock from various

places which is beneficial for the store.

208

SUGGESTIONS:

1) Awareness about the product quality, prices, discounts, and

consumer rights are essential for customers. They have to familiar about

all. Consumer is the king of market so market should form according

his need.

2) Discounts should be fact or reality, manipulation should not be

there. The different corner should reserve for the poor people. This

could be imply by given more discounts on low quality product or we

can say there should be more discount for the such commodities which

are mostly preferred by poor people. By market research, retailers have

to decide what the basic needs are and which commodities are mostly

preferred by low level income group.

3) Advertisement is a psychological mind setter; the right use of

this tool should be there. It should not be liar because mostly people

make their perception by their icon persons. Advertisement makes need

in consumers mind and it also makes customers to egger for needles

demand.

4) With the help of experience this study we can say the mall

culture has not plant until fully so mix brand policy should be adopt by

organized retail outlets. The local products should be in organized retail

outlets. Branded as well as non-branded should keep by retailers.

5) It has observed that the newcomer have little bit fair about the

organized retail outlets due to shining and decoration of the store so

there should to be some action for them.

6) The expenditure out of total income is same for customers of

organized and unorganized retail outlets, but proportionate expenditure

for food item is more for customers of unorganized retail outlets and

209

relatively they are poor so the price policy for food items should be

reasonable and affordable.

7) The catchment area is important so the retail shops should be

spread across all over the city. It should be accessible for last person.

8) The logistic cost is one of the major costs so the logistic

should be flexible or should be central for branded and domestic for

non-storable goods.

9) Government role should be important for price policy for

essential commodities; one administrative price policy should be there

for survival of poor people.

10) Local products should be granted as branded goods.

11) FDI policy should be more liberal in the area of retailing.

Today, 51 per cent FDI permeated in single brand product and 49 per

cent in multi brand product it should be liberal steps by steps. In fist it

should be liberal fully for single brand.

12) Contract farming is a more effective for vegetable and fruits

so the direct purchasing from farmer will help to reduce the cost and it

will helpful for retailer as well as customers. There should be a

balancing price policy for farmers and customer.

210

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217

Appendix: 1

Questionnaire for the respondent

(Customers of retail outlet)

1) Name & address ………………………………………………………………...... ……………………………………………………………………………………….

2) Family members: ………………………………………………………….... Sr. no

Gender Age Education Occupation Income

1 2 3 4 5 6 7 8

3) Distance to Home/office from here: ………………………………………………….

4) Whether regular customer: 1 – Yes 2 – No

5) Since how long have you been visiting this outlet?

1 – Less than one year 2 – One year 3 – Two years

4 – More than two years 5 – From establishment

6) How often you visit:

1 – Daily 2 – once in two days

In week

1- Once 2 – Twice 3- Thrice 4 – more than three In month 1- Once 2 – Twice 3 - Thrice 4 – more than three In Year

7) Visit: 1 – By walk 2 – Two wheeler 3 – Car

4 – Auto 5 – Public transport

8) Most popular product of this retail outlet: …………………………………………….

218

9) Source of awareness of the retail outlet:

1 – Friends 2 – Relatives 3 – Television 4 – News papers 5 – Others 10) Influence on buying decision:

1 – Self 2 – Spouse 3 – Kids 4 – Friends 5 - Relatives 6 – Others 11) Price expectations:

1 – Poor 2 – Fairs 3 – Good 4 - Very good 5 – No response 12) Price competition:

1 – About the same 2 – Too higher 3 – Little higher 4 – No response 13) Mode of payment

1 – Cash 2 – credit card 3 – debit card 4 – Gift voucher 5 – Others 14) Customer Satisfaction:

1 – The outlet is conveniently located 1 2 3 4 5 2 – Parking space 1 2 3 4 5 3 – outlet atmosphere and decor 1 2 3 4 5 4 – The quality of the goods 1 2 3 4 5 5 – Locating products 1 2 3 4 5 6 – Service 1 2 3 4 5 7 – Various promotions schemes run by the outlets 1 2 3 4 5

15) Dose door delivery make by this outlet. 1 - Yes 2 - No

16) Are you using other outlets for the purchasing a special commodity:

1- Yes 2- No If yes, which is that: ……………………. From where: ……………………

17) Consumer expenditure:

Sr.no

Item group Goods Weight in Kg

Price in Rs.

Total expenditure

From outlet

1 Cereals 1-Jawar /Bajara 2-Wheat 3-Rice 4-Maida 5-Noodles 6-Beade 2 Pulses 1-Tur 2-Udid 3-Masur 4-Mung

219

5-Gram 6-Soyaben 3 Milk 4 Milk product 1-Poweder 2-Baby food 3-Ghee 4-Butter 5-Ice cream 5 Edible oil & vanaspti 6 Vegetables 7 Fruits & Nuts 8 Sugar 9 Salt & Spices 10 Other food items: tea,

coffee, biscuits

11 Chokelets 12 Pan/Tobacco 13 Toilet articles washing soaps & cosmetics agarbati Insecticides 14 Sundry

articles 1-electric bulb,

2-tube light, 3-Glass ware 4-buckets, 15 Clothing &bedding

16 Foot ware

17 Durable goods

1-Furniture &Fixture :bed set, almirah, suitcase, carpet, paintings, etc

2 – Crockery & Utensils thermos, casseroles, stainless steel U.

3-Cooking & household appliances

1-air conditioner

2-Fan 3-sewing M. washing M. 5-presser

cooker

refrigerator

Heater

Toaster

220

4-Goods for recreation

Musical instrument

TV Radio Tape recorder 5 – Jeweler &

ornaments

6- Other personal goods

Mobile handset

Clock

Watch Pc Telephone

handset

Laptop

Appendix: 2

QUESTIONNAIR (for Retailer)

1) Outlet’s name: ……………………………………………………………….. 2) Type of Retail format:

1. - Convenience store 2- Chain store 3- Franchise 4- Specialty store 5- Departmental store 6- Supermarket 7- Hypermarket 8- Mall 10- Discount store 11- Factory / secondary outlet 12…………………….

3) Date of establishment in Aurangabad city: …………………………………

4) Date of establishment of origination year…………………………………….

5) Head office………………..… Branches………………………………….…

6) Where are they located in Aurangabad city:

………………………………………………………………………………

7) Location and area…………………………………………………………… 8) Owner of the land: 1) self 2) on rent

3)……………………………………………………………………………

221

9) Who is the owner: ………………………………………………………………………………...

10) How many Departments in the outlet: ……………………………………….

11) How many variety of products in the outlet (own brands): …………………. ………………………………………………………………………………...

12) Number of customers visits in a day: ………………………………………...

13) Organizational setup: 1) Operation head… 2) Manager/assistant manager …… 3) Supervisor……4) Supervisor development program…… 5)Customer service assistant………………

14) View about supply side (how retailer parches’ the stock)……………………………

……………………………………………………………………………………………..

15) Space (sq.ft.) and sale of department: No. Departments Area

(in sq.ft.) Daily target (thousand)

Monthly target

1 Garments 2 Electronics 3 Home work play 4 Furniture 5 Vegetable & fruits 6 Staples 7 FMCG 8 Cash 9 warehouse 10 11 12

16) Offer strategies: 1) Price offer – a general type of offer provided on price of the commodity. 2) Value offer – an offer provided on the value added e.g. buy 2get 1free. 3) Combine offer – provided on combine packs e.g. by 2 shirts just at 599

only. 4) Co-offer – an offer provided on two various / different commodities. For

example buy one (x) get another (y) free 5) …………………………………………………………………………

17) On which day of the week, number of maximum customers visits : 1-Sunday 2- Monday 3- Tuesday 4- Wednesday 5- Thursday 6- Friday 7- Saturday

222

18) On which day of the week, the customers less in numbers : 1-Sunday 2- Monday 3- Tuesday 4- Wednesday 5- Thursday 6- Friday 7- Saturday

19) Opening Hours of store: 1- 8:30 , 2- 9:00, 3- 9:30, 4- 10:00, 5- 10:30, 6-11:00

20) Closing hours of store : 1-9:00, 2- 9:30, 3- 10:00, 4- 10:30, 5-11:00, 6-11:30

21) Open late on any evening : 1 – Yes 2 – No

If Yes, Which night: 1- Sunday 2- Monday 3- Tuesday 4- Wednesday 5- Thursday 6- Friday 7- Saturday What hours: 1- 10:00, 2- 10:30, 3-11:00, 4-11:30, 5- 12:00, 6- 12:30, 7-1:00

22) Crowds at opening hours : 1 – Yes 2 – No If yes, which day: 1- Sunday 2- Monday 3- Tuesday 4- Wednesday 5- Thursday 6- Friday 7- Saturday

23) Crowds at Closing hours : 1 – Yes 2 – No If yes, which day: 1- Sunday 2- Monday 3- Tuesday 4- Wednesday 5- Thursday 6- Friday 7- Saturday

24) Extend hours before any festival: …………………………………………… 25) Decrease in any days sale…..…………………………………………………

26) Increase sale in any special department.………………………………………

27) Percentage of business done in evening….……………………………………..

28) Rank days of week according to sale :

Days 1st 2nd 3rd 4th 5th Monday Tuesday Wednesday Thursday Friday Saturday Sunday


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