ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

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SHOPPER’S BEHAVIOR TOWARDS UNORGANIZED AND ORGANISED FOOD & GROCERY RETAILING: CASE OF GWALIOR & IN

Kumar Siddhartha Dr. D.K. Dubey Dr. Neeraj Singh Research Scholar-Management Principal Professor & Vice Principal Barkatullah University Sadhu Vaswani College VNS Institute of Management (MP), Bairagarh, Bhopal (MP), India Bhopal (MP), India [email protected] [email protected] [email protected]

ABSTRACT Indian retail (un-/organized retailing) has witnessed great shifts in market since inception even for fast moving consumer goods (FMCG) e.g. food & grocery from Kirana store to organized market (malls, supermarket & hypermarket).The study will analyze the governing drivers (especially demographic) of the retail revolution in Gwalior and Jabalpur cities of Madhya Pradesh to explain and explore how factors have brought the change in shopper’s buying behavior and choice towards kirana and organized grocery retailers. This study has the objectivity to analyze consumer buying behavior in different retail formats of food and grocery segment. Consumer shopping behavior includes significance of demographic factors and attitudes towards traditional stores and modern retail stores and shopping habits. The researcher intends to have descriptive study of the consumer’s opinion and attitude after opening of modern retail in vicinity in Jabalpur and Gwalior cities. The paper will also study how the factors that have impacted on the share of un-/organized retailing sector in food and grocery market. This study will explain the shopper’s choice of kirana stores vs. organized stores e.g. hypermarkets, malls, etc. The data has been collected from un-/organized food & grocery stores (hyper markets, discount stores, department stores and small kirana stores) in urban and suburban areas of Jabalpur and Gwalior. The inference drawn from the study indicates the changing lifestyles, urbanization, economic growth and the spread of information technology (IT) are some of the key factors for the growth of the retail sector in India and so in these cities. A modern competitive business With LPG 1 (Liberalization, Privatization, and Globalization) and modernization, is based on understanding the mindset of the consumers in given geographic areas. Researcher used percentage method for data analysis, “Kruskal Wallis test” and “Spearman rank co-relations” for testing the hypothesis. . Key Words:- Food & Grocery, Un-/Organized Retailing, descriptive, demographic factors, ‘’Kruskal Wallis test” and “Spearman rank co- relations’’

------LPG 1: Liberalization, Privatization, and Globalization, is a new model economic reform, has the prime objective to make the economy of India the fastest developing economy in the world to match up with biggest economy of world

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

Introduction own efficient management system which Retailing activities market the products or efficiently fulfilling the needs of the customer. services to final consumers for their personal or This is one of the good reasons why the household use. It makes available stuffs on a customer doesn't want to change their old loyal relatively large scale and supplies them to kirana shop. customers on a relatively small scale. The A large number of working class, daily and research in FMCG un-/organized retail literature seasonal workers in India, even during their has a beginning far earlier, than the inception of unemployment period use to purchase from organized format. The available literature in this kirana store in credit to fulfill their needs field has explained the impact due to because so small purchase quantity would not investments/ government policy, changed be entertained by big retailers. demography, etc. has more width as well as Another reason might be the proximity and so depth, in discussing all the factorial contribution the convenience store for the customer. towards consumer choice to shop at. The Different income, occupation and age segments previous researches (articles) look at both of shoppers like, spouses, unemployed, retired, segment of fast moving consumer goods salaried and students reflect their shopping (FMCG) retail separately, with a few trends affected by availability of organized overlapping studies, which incorporate store as retailers in the city because of education, change well as format choice are available to food and in lifestyle and perception that affects and grocery consumers. determines the retailer’s income and survival. The researchers examined the customer store choice based on store attributes. Even where, Literature Review the consumer attributes (demographics etc.) Survival of unorganized retailing, customer have been used, the relationship has been found relationship strategy and developing economic weak. In store choice, the stress is more on growth of both un- / organized retailing in consumer attributes (mainly demographic), India, advantage and role and initiatives of leading to particular types of formats to fulfill was considered in an their immediate grocery needs. The consumer empirical research study which found that choice and perception literature has studied generating employment, survival strategy and stores and identifies the competition that exists customer retention strategy for organized retail between organized formats comparing has fierce competition to unorganized retailing unorganized outlets of FMCG even food & i.e. FMCG like Food & Grocery, Clothing & grocery. fashion; beauty products; electronics and furniture. The advantages for unorganized retail In addition, store attributes identified in the sector or traditional retailing are low cost literature are unique to the store, but are rather structure, low real estate and labor costs. gradually incorporated by a number of Moreover, proximity of the location, credit unorganized FMCG stores even for food & sales, convenient timings, facility of home grocery, operating within the segment to survive delivery and close familiarity with almost all in competition. In smaller towns and urban regular customers; all these add to the positives areas, there are many families use kirana shops/ of this sector. It was observed that unorganized 'mom and pop' stores offering a wide range of retailers in the vicinity of organized retailers merchandise mix. Kirana shops are having their experienced a decline in their volume of

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

business and profit in the initial years after the retailers. When compared with unorganized entry of large organized retailers. Adopting to retailing, organized retailing is growing with maintain its market share and give an insight on alarming speed. They adopt customer interrelationship between consumers’ friendly relationship management for long term services and success of traditional shops. It sustainability. But unorganized retailing is least suggested that organized retailers together with concerned about neither retention of customers kirana stores and hawkers should expand their nor CRM3. (S. Dayanithi, et.al. Dec 2014). The business through the ways of franchises and kirana stores and pan shops are seen part of partnerships. To achieve this, organized retailers community life and hence unorganized retail will have to provide traditional retailers with will stay but ICRIER.4 observes that if sufficient amount capital (Prof. Rupa organized retail does not grow, the unorganized ,2015). Author observed that small size sector will not able to handle the surging outlets are also one of the weaknesses in the demand. The author finds that unorganized Indian retailing. 96% of the outlets are lesser retailers in the vicinity of organized retailers than 500 sq.ft. Author further adds that the have been adversely affected in terms of their volume of sales in Indian retailing is also very volume of business and profit. low. Authors further added the greatest barriers The author further illustrates the major factors to the growth of modern retail formats are the that attract unorganized retailers to consumers supply chain management issues. are proximity, goodwill, credit sales, bargaining, No major changes are needed in the supply loose items, convenient timings, and home chain for FMCG products; these are well delivery; clear evidence of a competitive developed and efficient. The perception of the response from traditional retailers who are small retailers upon big stores in awake of gearing up to meet the threats from allowing foreign direct investment (FDI)2 in organized retailers; consumers have generally multi-brand retail which may lead to a closure gained with the emergence of organized outlets of unorganized, conventional and small through the availability of better quality mummy-pop stores (Shilpa Gerg and products, lower prices, one- stop shopping, R.Arora.2014). A further study understood the choice of additional brands and products, family objectives to know survival strategies, customer shopping, and fresh stocks; lower income preferences to choose unorganized retailers, and consumers have saved more from purchases at the challenges faced by unorganized retailers organized outlets. through a descriptive research study. The growth in the Indian organized retail market Further author found the customers preferred is mainly due to the change in the consumer’s “Convenience” as the main Reason, “credit PERCEPTION. This change has come in the facility” as a second reason “Location consumer due to increased income, changing Proximity” is the third reason to visit lifestyles, and patterns of demography which are unorganized retailers. Customers ranked favorable. Now the consumer wants to shop at a “Emergency Purchase” as a fourth reason to place where he can get food, entertainment, and choose unorganized retailers. “Shifting of all shopping under one roof. The major factors customers to Organized Retailers”, “Stiff that attract the customers towards unorganized competition given by organized retailers”, retailers are proximity, goodwill, credit sales, Massive and Fast growth of organized retailing bargaining, loose products, convenient timing was found a main challenge to unorganized and home delivery.

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

This has given Indian organized retail market a autonomous, policy oriented, not-for-profit, major boost. (Sushmana, June 2014). The major economic policy think tank, which focuses factors that attract the customers towards mainly to enhance the knowledge content of unorganized retailers are proximity, goodwill, policy making by undertaking analytical credit sales, bargaining, loose products, research that is targeted at informing India’s convenient timing and home delivery. policy makers and also at improving the Consumers have generally gained with the interface with global economy. ICRIER emergence of organized outlets through the conducts thematic research on macroeconomic availability of better quality products, lower management, global competitiveness of Indian prices and one stop shopping, choice of economy, multi lateral trade, urbanization additional brands and products, family challenges and opportunities, promotes shopping, and fresh stocks. Lower income entrepreneurship and skill development, etc. consumers have saved more from purchases at organized outlets. Author does not see these OBJECTIVES results indicative of the countrywide The research analyzes the various aspects of scenario.(Priya Vij, 2013). In a further study Dr food & grocery retailing to understand Anupama Prashar (2013), found that the consumer perception and satisfaction level of respondent’s value availability and variety of the consumers in Gwalior and Jabalpur in products at store, store ambience, service and Madhya Pradesh. Also the factors which facilities, and value for money offered at store. unorganized retailer must take up to establish Though the unorganized retailers had a good and grow their business. share in market, but due to factors such as space, parking etc. a gap existed between both the formats (Ms. Monika Talreja*; Dr. Dhiraj The objectives of the research are: Jain; 2013).Lakshmi Narayana K*, Samal and i. To understand the consumer shopping P. N. Rao, 2013, understand consumer behavior behavior and demographic factor’s towards organized and unorganized retail stores significance on shopping behavior and noticed changing consumer’s taste and towards un-/organized food & grocery lifestyle, somewhere automatically give some stores in Gwalior and Jabalpur (MP) advantage to organized sector. This makes ii. To find out the change in shopping imperative for unorganized retail sector to patter and impact of organized food & restructure itself in order to withstand the grocery retail towards consumers increasing competition and to meet consumer shopper’s impulse buying in Gwalior expectations by moving with trends. and Jabalpur (MP). FDI 2: foreign direct investment; NDA govt. allowed 100% FDI in multi brand retail; food retail (2012-51%; July2015-49%; March 2016- RESEARCH METHODOLOGY 100% ecommerce; June 2016-100% FDI –food retail The study is of descriptive in nature with CRM 3: customer relationship management exploratory texture to understand changing ICRIER4: Indian Council for Research on shopping behaviors and demographic factors International Economic Relations is think tank, governing shopping in both cities. The established in August, 1981. It is an

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

respondents were either frequent visitors of un-/ Research Design: organized FMCG retail outlets or both types of The descriptive study is related to changing retail shops. The data has been collected through buying behavior of consumers in un-organized the structured questionnaire by using a as well as in organized retail at Gwalior and convenience sample of consumers from both Jabalpur Cities. The studies have been made to cities. 125 consumers from each city (total 250 know the changing buying behavior of consumers) were contacted and interviewed consumers who buy from unorganized retailers along with questionnaires, out of which 200 and at least once from an organized outlet in filled questionnaires were found complete and their respective city. The study includes 04 relevant. Interviews were conducted with food months (reference period from May, 2017 to & grocery consumers only who have been August, 2017) and for analyzing the data purchasing groceries (staple items) from percentage methods, chi square tests and other unorganized retail outlets (kirana store) and at statistical tools related to data have been used. least once from organized stores. Conducting the survey includes respondents on the basis of demographic factors, e.g, gender, educational Data Collection Method background, age group, income level, The data is collected through structured occupation, etc. Finally collected relevant data questionnaires from customers who visit were from urban areas of Jabalpur (108) and organized outlets as well as unorganized stores Gwalior (92) in the survey field work. There is a by using convenience method. For research limitation of time, manpower and costs. work both primary as well as secondary data were used for information collection. Data was broadly classified into two sections: Hypothesis: Primary Data: first hand data collected trough questionnaire and interviewing to target H0a: Shoppers behavior refers to significant customers also on the basis of questionnaire and positive relationship between occupation and observing the socio-economic, living and visit pattern to buy from unorganized retail working aspects of the sample in their grocery stores in Jabalpur and Gwalior behavioral pattern. Secondary data has been collected through a H0b: Shoppers behavior refers to significant wide range of published materials to understand behavior between age group and gender of the philosophy of consumer behavior. These shoppers to buy from un-/organized retail include research papers, articles in various grocery stores in Jabalpur and Gwalior journals and magazines, annual reports of the Govt. of India, etc. Other sources may be the companies’ websites, newspaper reports, H0c: Shoppers behavior refers to a significant technical and trade journal, books, magazines. relation between income of shoppers and Research instruments buying from un-/organized retail grocery stores in Jabalpur and Gwalior Questionnaires: In order to collect primary data a structured and descriptive (open ended) questionnaires were designed. Questions included the demographic factors, e.g. income,

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

occupancy, age, visit frequency, and were put to earning between Rs. 20001 to 30000 is 18%, different class of shoppers ,e.g. spouse (female), respondents have earning between Rs. 30000 to students, retired, self-employed, salaried. 40000 is 14.5% while those who earn more than Individual Interview: Semi structured and Rs. 40000 and 50000 are only 3 % and 2.5% unstructured interview (where questions can be respectively. changed or adapted to meet the respondent's The respondent’s salary range in this study intelligence, understanding) method has been provides one possible reason as to why they used. Semi structured (focused interviews) prefer to shop in unorganized retail in both involve a series of open ended questions based cities. on the topic area. Occupational Profile of the Respondents (Refer table 3) Data Analysis: Study has been carried out in Source: researcher’s field survey urban areas of Jabalpur and Gwalior cities. All collected data are primary and has been taken Table 3: Discussion & Finding: The results together for interpretation, for both cities. indicates that 41.5% (83) out of 200 respondents most of the respondents belong to salaried Source: researcher’s field survey category, 23.5% are student, 28% were self Sample Distribution (demographic profile) of employed while 5.5% and 1.5% were housewife respondents during field survey(Refer table1) and retired respectively.

Table 1: Discussion & Finding: Sampling Design: Shoppers at retail outlets in The results indicated that out of 200 both cities were contacted and interviewed In respondents, the percentage of the male is 63% this study similar to cluster sample a multistage- and the female percentage is 37%. Majority of convenience sampling (several stages of the respondents are between 21-30 years of age sampling and sub-sampling) method is used. (14%+34%=48%) who usually prefer to visit Convenience sampling means the sampling supermarkets and malls for shopping. drawn is based on opportunity. Additional 15% of the respondents are between Data analysis Procedure: All sample units 31-40 years of age are close to youth segment (customers) were personally contacted during may also be a potential grocery shopper at survey. In order to study the opinion of organized outlets. 11.5% respondents are consumers after opening of modern retail in between 41-50 years of age being the remaining their city a structured questionnaire has been 4.5% respondents are above 51 years of age used along with using Likert Test scale. Post may be a shopper at unorganized grocery stores. collection researcher used percentage method Income Profile of the Respondents (Refer for basic analysis, “Kruskal Wallis test” and table2) “Spearman rank correlations” for testing the hypothesis. Source: researcher’s field survey Table No 4:- Analysis of Change in visit Table 2: Discussion & Finding: The results pattern on the Basis of Income profile of indicates that out of 200 respondents the Consumer percentages of respondents who earn Rs. 10000- Source: primary data (Likert Test scale) 20000 is 30.5%, respondents who have their (Figures in %)

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

(Refer table 4) the basis of Occupation; Area: Jabalpur (SS=108); Comparative visit analysis of income Group (Before: before opening up of organized retail) at unorganized retail before opening of Source: primary data (% in parentheses; “r” Organized Retail Outlets in the cities under stands for rank) (Refer table 6) study. Source: primary data (Figures in %)(Refer fig1) Table 6: Discussion & Finding: occupation and visit pattern of respondent’s relationship has been analyzed that daily buying has experienced a negative change (5.5% and 8.3% only) in their visit pattern in the city (SS= 108) when organized retailers are into business. Of course, salaried class shopper’s who’s shopping trend is more than once a day Comparative visit analysis of income Group have dropped by 8.3% and now also not prefer at unorganized retail after opening of to shop weekly (5.5%) but preference to shop Organized Retail Outlets in the cities under fortnightly is up (by 11.1%).Self employed study (Figures in %)(Refer fig2) respondents who visit stores more than once a day have also marked a negative change in all of Discussion & Finding: Fig 01 -02: The their visit pattern and have shifted their analysis reveals that in cities of Jabalpur and shopping pattern towards weekly by 13.8% Gwalior the various income group of shoppers [5.5% -(-)8.3%] and fortnightly by 19.4% [ have shown a significant change in visiting 11.1% -(-)8.3%]. unorganized outlets. As the income moves Moreover, there is a positive change (rise) in upwards the tendency to shop fortnightly basis weekly buying behavior by 5.5% and fortnight or monthly basis improves drastically. shopping behavior by 11.1 % and followed by a Obviously these income groups have shown the little or negligible but positive change in trend of mass population that the idea to shop monthly shopping (by 2.8%) after organized daily or even weekly is becoming obsolete. retailers became operational in Jabalpur city. Occupational Profile of the Respondents Shoppers who switched 100% from unorganized (Source: primary data)(Refer table5) to organized outlets were not found during survey which cannot be denied available in city. Table 5: Discussion & Finding: The results Retired and spouses (F) have not marked much indicates that 41.5% (83) out of 200 respondents change in their visit pattern. most of the respondents belong to salaried category, 23.5% are student, 28% were self Fig: 03: Comparative Visit Frequency employed while 5.5% and 1.5% were housewife Analysis (Before and Now), Jabalpur Area; and retired respectively. Sample Size= 108; (Source: primary data) (Figures in %) Sampling Design: Similar to cluster sample a (Refer fig 3) multistage- convenience sampling (several stages of sampling and sub-sampling) method Fig 03 elaborates that there is a minimal change has been used in this study. Convenience in the daily shopping pattern of the shoppers. sampling means the sampling drawn is based on Previously 27.6% consumers were visiting opportunity. unorganized retail once a day but now it is only 25.9% consumer visit. Similarly previously Table 6:- Analysis of change in visit pattern 26.8% shoppers were visiting at more than once for shopping on unorganized retail stores on a day and now it is only 18.5% follow this pattern. It means there is no significant

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

reduction (-5.5% to -8.3%) in shopping pattern and fortnightly (6.5%), and thus affecting the of consumers on daily basis. As far as daily visit retailer’s financial status. Students do not is concerned consumers preferably visited daily experience any major change , rather they seems to buy FMCG product (food & grocery) to be more static in visiting pattern even after especially spouse (F), students and retired organized sector is in. consumers and now any reduction happened in Moreover, there is a marginal decline in daily shopping pattern may affect sales FMCG-F&G buying (shopper’s visit to unorganized outlets of unorganized retailers. declined by 6.5 % in the city (SS= 92) where Now there is a change in daily shopping pattern organized retailers are into business. Though of consumers which has been shifted from daily there is a rise in weekly shopping behavior by (20.4%) to weekly basis (27.7%) and fortnightly 2.2 %, fortnight shopping behavior by 6.5 % basis (21.3%) and has also been moving towards and a little rise in monthly shopping (by 2.2%) monthly buying (13.9%), so the shopper’s have been preferred by FMCG shoppers after buying behavior and frequency is significantly organized retailers became operational in changing from weekly to fortnightly buying to Gwalior city. Shoppers who switched 100% monthly shopping even after opening of from unorganized to organized outlets were not organized sector (super market and malls) in found as such during survey which cannot be Jabalpur city. denied available in city. Retired and spouse (F) During survey no customers were found who did not change for an insignificant change in have stopped buying from unorganized retail their visit pattern. outlets after opening of organized outlets (e.g. malls and super market) in these cities under Fig: 04: Comparative Visit (%) Frequency study. Analysis (Before and Now), Gwalior Area; Sample Size= 92; Table 7:- Analysis of change in visit pattern (Source: primary data) (Figures in %) for shopping on unorganized retail stores on (Refer fig 4) the basis of Occupation; Area: Gwalior (SS=92); Fig 04 elaborates that there is a drastic change (Before: before opening up of organized retail) in the daily shopping pattern of the shoppers. Source: primary data (% in parentheses, “r” Previously 25% consumers were visiting stands for rank) unorganized retail once a day but now it is only (Refer table 7) 18.5% consumer visit. Similarly previously Table 7: Discussion & Finding: A relationship 21.7% shoppers were visiting at more than once between visit pattern of respondents and a day and now it is only 15.2% follow this occupation has been analyzed. Salaried class pattern. It means there is reduction in shopping shoppers, who shop more than once a day pattern of consumers on daily basis. As far as experience a drop by 4.4 % and now daily visit is concerned consumers consistently prefer(positive change) to shop weekly (10%) visited daily to buy FMCG product (food & and fortnightly basis (9.8%). Self employed grocery) and now any such reduction happened respondents who visit stores more than once a in shopping pattern may affect sales FMCG- day have also marked a marginal but negative F&G of unorganized retailers. change by 1.1 % in their visit pattern and shifted Moreover, there is a change in daily shopping their shopping pattern towards weekly (6.5%) pattern of consumers and this has been shifted

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

from daily basis to weekly basis (23.9%) and Source: primary data; (Figures in %age) fortnightly basis (25%) with a positive change (Refer table 10) in visit pattern of shoppers i.e. 2.2% and 6.5% Table 10: Discussion & Finding: A high respectively. Shoppers even have not been percentage of shoppers (customers) still prefer inclined or preferring better to buy monthly unorganized retailers to shop at for food and basis (17.4%) with a negligible positive change grocery at Jabalpur and Gwalior though there is of 2.2% only. No customer was identified a gradual conversion from unorganized during survey that had stopped buying from shopping to organized store has been reported. It unorganized retail outlets after opening of means that the consumers may switch to a organized outlets (e.g. malls and super markets) sizable buying from organized outlets affected in Gwalior city. by a demographic change. Gwalior reports a comparatively better acceptance towards Table-8:- Analysis of change in shopping organized buying of FMCG (F&G) than pattern on the basis of Income and Age Group Jabalpur. Source: primary data (Figures in %) (Refer table 8) Fig: 05: Analysis of Shopping Choice Preference of Consumers for daily needs; Table 8: Discussion & Finding: Chart shows Sample Size: 200 the relationship between age group and income Source: primary data (Refer fig 5) of the shoppers. Data indicates that contribution of respondents from the age group of 21-30 Table 11:- Shopping in organized retail years is 40.5%. Respondents of age group 31-40 format increases Impulse Purchase (Sample years contribute 25.5%. Respondents of age Size 200) group 18-20 years are contributing 13%. Contribution from higher age group from 41-50 Source: primary data (Refer table 11) is 16% and 51 & above is only 5%. The growth of the earning middle and upper middle class Fig: 06:- Shopping in organized retail format has brought a change on the retail as they increases Impulse Purchase (Sample Size demands value for money. The increase in 200) Source: primary data (Refer figure 6) household monthly income has also led to a Fig: 06 explain that majority of customers in change in the spending patterns of shopper’s both towns taken together have an opinion that behavior. The spending by the age group from organized stores (hyper-/super-/markets/malls) 21 to 40 has highly impacted on their spending. induce impulse buying and disturbs family Comparatively their level of aspirations is also budget. Both towns show a narrow difference in higher from the older generations due to higher response towards organized stores of food & income. grocery (FMCG) in terms of impulse buying. Table-9: Analysis of consumers on the basis of Location; Source: primary data Major Findings from data interpretation: (Refer table 9) Table 10:- Analysis of Shopping Choice i. Customers with higher income are more Preference of Consumers for daily needs; inclined to have organized shopping for Sample Size: 200 food & grocery (i.e. monthly)

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

ii. Growing income has positively affected retail as they demands more value for the buying from organized outlets over money. The increase in monthly income unorganized outlets. (3.5%; table 4). has resulted with a change in the spending power and pattern of shopping behavior. The spending by the age group iii. Most of the shoppers belong to salaried from 21 to 40 has made a nice positive (83, 41.5%) and self employed (56, impact on their spending (40.5% & 28%) category followed by students (47, 25.5%) (table 8) 23.5%) ; table 5 iv. Jabalpur: Shoppers seem more vii. It has been observed in both cities that interested and inclined to unorganized there is steady and constant shopping shoppers even after opening of behavior of spouses and retired organized stores in the city. Shoppers shoppers. Fortnight buying has been have preferred to shop weekly (5.5%) or preferred by salaried and self employed monthly buying (11.1%) instead of daily shoppers. It means that in both cities buying. Daily buying from unorganized weekly and fortnight buying by shoppers stores has been much preferred by have gone up drastically and shopper’s retired shoppers (2.7%). Students interest in monthly shopping is preferred weekly (6.4%) and fortnightly improving gradually. buying (5.5%) from unorganized stores. Spouse, self employed and salaried class viii. Need based buying is done by shoppers of shoppers have preferred to shop at for daily buying. organized stores over unorganized stores. ix. The negative responses towards unorganized retail in terms of impulse buying in both cities are big different to v. Gwalior: The shoppers experience each other (i.e. Jabalpur -63.89% & positive cumulative effect towards Gwalior - 29.34%); i.e. Jabalpur has organized buying for daily buying observed minimum impact of organized (unorganized stores suffered with a drop retail in the town in contrast to Gwalior by 6.5%). Weekly and fortnightly towards shopping behavior for food and buying have been preferred much by grocery (FMCG) and choice of stores. shoppers due to organized stores. Shoppers are enjoying shopping at with them in the city. Weekly (23.9%), Finding from Hypothesis: fortnightly (25%) and monthly (17.4%) H0a: Shoppers behavior refers to significant buying has been preferred much by positive relationship between occupation and shoppers in the city. visit pattern to buy from unorganized retail

grocery stores in Jabalpur and Gwalior vi. The growth in the household income of

middle class has brought a change on the

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

Refer Table.6 & 7: for Jabalpur and Gwalior Managerial Implications: The conservative respectively and price sensitive shoppers of Jabalpur and Gwalior enjoy buy and credit facilities of Test Statistics: (Refer table 12) unorganized food and grocery retailers and experience positive but small impact of H0b: Shoppers behavior refers to significant organized retailers on them. The demographic behavior between age group and gender of factors have determined a relationship between shoppers to buy from un-/organized retail them expressing a positive or negative impact grocery stores in Jabalpur and Gwalior on shopping behavior in said towns and hence the study may facilitate managers to understand Test Statistics: (Refer table 13) the changes in shopper’s behavior in different H0c: Shoppers behavior refers to a significant territories of country India happens. The results relation between income of shoppers and may vary depending upon the income and other buying from un-/organized retail grocery demographic factors in new geographical stores in Jabalpur and Gwalior territories. The growth trend of retail sector in (Refer table 14) India may redefine the market size of both sectors (un-/organised) , hence the shopper’s Inference: behavior towards FMCG buying at retail stores (un-/organised) under the influence of few or At Jabalpur and Gwalior…. more significant reasons affecting their choice 1. Shoppers are shopping at either criteria and visit patter (so customer base) in organized or unorganized retailer’s future. stores irrespective of their occupation. Obviously some other factors might be Scope of research: governing their visit pattern to both This research is especially concerned with the types of stores. food and grocery segment of the un-/organized 2. Also shoppers do not prefer to buy stuffs retailing. This study can be carried out in the from either organized or unorganized rural segments as well. Markets of similar retail store irrespective of their age nature in other regions of the country may be group & gender. Obviously some other studied on similar pattern. Research result may factors might be governing their visit vary w,r,t, the variables, their impact and other pattern to both types of stores. relationship depending upon the demographics 3. Shopper’s income also does not support of population, managers can estimate the the reason why they shop from an potentiality of their respective and concerned organized or unorganized retail shop. market for substantial result/s. There is enough Obviously some other factors might be scope in other FMCG segments. This research governing their visit pattern to both provides a road map to future investigations in types of stores. Obviously some other other segment of FMCG also, though the nature factors might be governing their visit and trend of business and territory may differ. pattern to both types of stores. CONCLUSION:

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

The study has given a complete and clear the two types of retail stores. It may be picture of shopping behavior in both districts convenience, prices & offers, ambience, (urban area only) for unorganized kirana stores proximity, etc. Referring fig 05 & 06, the (FMCG). The buying behavior is in ambiguous organized retail after opening up in these towns while talking about all the occupational has definitely affected the shopper’s buying segments of buyer, i.e. a mixed behavior behavior, in terms of impulse purchase, and (marginal decline, rise and no change) was store choice. Comparatively, Jabalpur has been observed (objective 1). Though, the income, affected minimum (19.44% & 36.11%) and gender and age have not much influenced their Gwalior has been affected much (59.78% & changing (switching) shopping choice from 70.66%) in terms of choice of retail stores & unorganized to organized FMCG (Kirana-Food impulse buying. & Grocery) and has stated that future of unorganized FMCG (F&G) stores may face a Limitations: critical threat in coming future (objective 2). The study is limited to selected urban area of Yes, of course, they may not be facing fierce Gwalior and Jabalpur. Due to the Time and competition from organized sector very soon. financial constraint, the sample size was limited But the changing shopping behavior compels to 200 only in totality. Hopefully a larger them to improve upon their survival strategy to sample size w.r.t. large population of Jabalpur sustain into business in future. The unorganized and Gwalior would give near to accurate result retailers must analyze attentively the shift that may be different to the present study. The happening in customer base and their visit patter sampling was mostly carried out during mid day from daily to preferably weekly and fortnightly to evening time when the maximum people that has offered space and opportunities to were visiting outlets. The collected data during organized sector to attract buyers (shoppers). In whole shopping time may find different future, the significant impact may be witnessed outcome. in the towns of Jabalpur and Gwalior as a challenge. In nutshell, shoppers have other factors or reason why they shop from either of

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

LIST OF TABLE

Table 1; Sample Distribution (demographic profile) of respondents during field survey

Age Group GENDER (years) FEMALE MALE Total Rank 18-20 12 6 % 30 15 % 42 2 (21%) 21-30 28 14 % 68 34 % 96 1 (48%) 31-40 16 8 % 14 7 % 30 3 (15%) 41-50 11 5.5 % 12 6 % 23 4 (11.5%) 50 & above 7 3.5 % 2 1 % 9 5 (4.5%) Total 74 37 % 126 63 % 200 15

Table 2:- Income Profile of the Respondents

Income Group Count Percentage Cumulative Rank % Below Rs 5000 18 9 9 5

Rs. 5000-10000 45 22.5 31.5 2

Rs. 10001 to 20000 61 30.5 62 1

Rs. 20001-30000 36 18 80 3

Rs. 30001-40000 29 14.5 94.5 4

Rs 40001-50000 6 3 97.5 6

Rs 50001 & above 5 2.5 100 7

Total 200 100 28

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

Table 3:- Occupational Profile of the Respondents

Occupation Frequency Percentage Student 47 23.5 Salaried 83 41.5 Self Employed 56 28 Spouse (F) 11 5.5 Retired 3 1.5 Total 200 100

Table 4 Analysis of Change in visit pattern on the Basis of Income profile of Consumer

Income Group Shopping Pattern Previous Trend Current Trend in Change In %age in % % (±) (before opening (after opening org outlet org. outlet) Rs. 5000-10000 At least once a day 7.4 2.6 - 4.8 % More than once a 5.5 3 -2.5 % day 1 or 2 days a 2.2 4.6 + 2.4 % week Once a 2.6 4.2 + 1.6 % fortnight Once in a month 1.6 2.6 + 1.0 % Rs. Rs. 10001 to At least once a day 9.1 3.4 - 5.7 % 20000 More than once a 12.4 6.4 -6.0 % day 1 or 2 days a 7.6 11.3 + 3.7 week Once a 3.3 11.4 + 8.1 fortnight Once in a month 1.9 3.3 - 1.4 Rs.20001-30000 At least once a day 6.4 4.2 -2.2 More than once a 7.6 4.4 -3.2 day 1 or 2 days a 7.4 8.6 +1.2 week Once a fortnight 3.4 7.2 +3.8 Once in a month 2.6 3.7 +1.1 Rs. 30001-40000 At least once a day 4.2 2 -2.2 More than once a 4.4 2.8 -1.6 day

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

1 or 2 days a 7 5.9 -2.9 week Once a 2.2 5.6 +3.4 fortnight Once in a month 2.8 3.3 +0.5 Rs 40001-50000 At least once a day 3.1 2.2 -0.9 More than once a 2.6 1.3 -1.3 day 1 or 2 days a 4.2 3.1 -1.1 week Once a fortnight 6.3 8.4 +2.1 Once in a month 4.7 8.2 +3.5

Table 5:- Occupational Profile of the Respondents (Source: primary data)

Occupation Frequency Percentage (%) Student 47 23.5 Spouse (F) 11 5.5 Self Employed 56 28 Salaried 83 41.5 Retired 3 1.5 Total 200 100

Table 6:- Analysis of change in visit pattern for shopping on unorganized retail stores on the basis of Occupation; Area: Jabalpur (SS=108) Self Students Spouse (F) Salaried Retired Employed Total % (%) (%) (%) (%) Visiting (%) Chang pattern Befo No B N B N B N B N B N e re w (±) (B) (N) At least 5 4 3 2 9 6 9 7 2 3 28 22 -6 once a (4.6) (3.7) (2.7) (1.8) (8.3) (5.5) (8.3) (6.4) (1.8) (2.7) (25.9) (20.4) (-5.5) day (r=2) (r=3) More than 7 5 3 1 5 4 13 10 1 0 29 20 -9 once a (6.4) (4.6) (2.7) (0.9) (5.5) (3.7) (12.0 (9.3) (0.9) (0) (26.8) (18.5) (-8.3) day 4) (r=1) (r=4) 1 or 2 3 7 3 2 6 8 11 10 1 3 24 30 6 days a (2.7) (6.4) (2.7) (1.8) (5.5) (8.3) (10.2 (9.3) (0.9) (2.7) (22.2) (27.7) (+5.5) week ) (r=3) (r=1)

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

Once a 2 6 2 1 2 7 5 7 0 2 11 23 12 fortnight (1.8) (5.5) (1.8) (0.9) (1.8) (6.4) (4.6) (6.4) (0) (1.8) (10.2) (21.3) (+11.1) (r=5) (r=2) Once in a 3 2 2 1 2 4 4 5 1 1 12 15 3 month (2.7) (1.8) (1.8) (0.9) (1.8) (3.7) (3.7) (4.6) (0.9) (0.9) (11.1) (13.9) (+2.8) (r=4) (r=5)

Table 7:- Analysis of change in visit pattern for shopping on unorganized retail stores on the basis of Occupation; Area: Gwalior (SS=92);

Visitin Students Spouse (F) Self Salaried Retired Total g (%) (%) Employed (%) (%) (%) Chang pattern (%) e In Befor Now B N B N B N B N B N %age e (N) (±) (B) At least 5 4 2 3 4 4 9 3 3 3 23 17 -6 once a (5.4) (4.3) (2.1) (3.2) (4.3) (4.3) (9.8) (3.2) (3.2) (3.3) (25) (18.5) (-6.5) day (r=1) (r=3) More 4 4 3 2 3 2 9 5 1 1 20 14 -6 than (4.3) (4.3) (3.2) (2.1) (3.2) (2.1) (9.8) (5.4) (1.1) (1.1) (21.7 (15.2) (-6.5) once a ) (r=5) day (r=2) 1 or 2 3 4 3 2 3 6 9 9 2 2 20 22 2 days a (3.2) (4.3) (3.2) (2.1) (3.2) (6.5) (9.8) (9.8) (2.1) (2.1) (21.7 (23.9) (+2.2) week ) (r=2) (r=3) Once a 3 3 2 2 4 6 6 9 2 3 17 23 6 fortnigh (3.2) (3.2) (2.1) (2.1) (4.3) (6.5) (6.5) (9.8) (2.1) (3.1) (18.5 (25) (+6.5) t ) (r=1) (r=4) Once in 2 2 3 3 3 5 4 4 2 2 14 16 2 a (2.1) (2.1) (3.3) (3.2) (3.2) (5.4) (4.3) (4.3) (2.1) (2.1) (15.2 (17.4) (+2.2) month ) (r=4) (r=5)

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

Table 8 Analysis of change in shopping pattern on the basis of Income and Age Group Source: primary data (Figures in %)

Monthly AGE GROUP (years) Household 18-20 21-30 31-40 41-50 52 and above Income Freq Table Freq Table Freq Table Freq Table Freq Table (Rs.) % % % % % Less than 3 1.5 4 2 2 1 0 0 1 0.5 Rs. 5000 Rs. 5000- 6 3 9 4.5 7 3.5 4 2 3 1.5 10000 Rs. 10001 9 4.5 19 9.5 13 6.5 7 3.5 2 1 to 20000 Rs. 4 2 33 16.5 14 7 11 5.5 3 1.5 20001to 30000 Rs. 30001 2 1 10 5 11 5.5 8 4 0 0 to 40000 Rs 40001 1 0.5 4 2 2 1 2 1 1 0.5 to 50000 Rs. 50001 1 0.5 2 1 2 1 0 0 0 0 & above Total 26 13 81 40.5 51 25.5 32 16 10 5

Table 9: Analysis of consumers on the basis of Location; Source: primary data

Location Responses Percentage (%) Jabalpur (MP) 108 54 Gwalior (MP) 92 46 Total 200 100

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

Table 10 Analysis of Shopping Choice Preference of Consumers for daily needs; Sample Size: 200

City Organized %age Unorganised %age Total Retail Retail Jabalpur 21 19.44 87 80.56 108 Gwalior 55 59.78 37 40.22 92

Table 11:- Shopping in organized retail format increases Impulse Purchase (Sample Size 200)

Town Responses Responses Percentage (%) (Yes) (No) Yes No Jabalpur (SS=108) 39 69 36.11 63.89 Gwalior (SS=92) 65 27 70.65 29.34 Total (SS=200) 104 96 52 48

Table 12 Test Statistics

Spearman’s Rank Correlation Coefficient 2 n=5 ; d i = 22; Spearman’s Coefficient (RHO) is -0.2

Observation: The value of Spearman correlation between occupancy and visit pattern (before and now) is -0.2 Value of r s like correlation coefficient lies between -1 and +1 The value +1 implies that there is perfect correlation in the ranks (ranks are same for all units), whereas - 1 implies that the two sets of ranking are just reverse of each other. (High degree negative correlation( -0.75to -0.99) has been observed Hypothesis H1a is rejected.

Table 13 Test Statistics

Kruskal-Wallis test (H test is applied to know whether median score is uniformly distributed over all the factors to have generalist result obtained from median score) k H 12/ n(n 1)Ri2 / ni  3(n 1) i1 Whereas, N= No. of observations; R= Sum of ranks Refer Table.1(age vs. gender): Df=4; significance level is 5% (0.005); Chi square Test (Table value-

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

9.488, Calculated. value- 10.8); age is not equally distributed Hypothesis H0b rejected. (table value < calculated value)

Table 14

Kruskal-Wallis test (H test is applied to know whether median score is uniformly distributed over all the factors to have generalist result obtained from median score) k H 12/ n(n 1)Ri2 / ni  3(n 1) i1 Whereas, N= No. of observations; R= Sum of ranks Refer Table.2(income profile): Df=6; significance level 5% (0.005); Chi square Test (Table value- 12.592, Calculated. value- 18.857) Hypothesis H0c is rejected. (table value < calculated value)

LIST OF FIGURES

Figure. 01: Comparative visit analysis of income Group at unorganized retail before opening of Organized Retail Outlets in the cities under study. Source: primary data (Figures in %)

14 12.4 12

10 9.1 5000-10000 7.4 7.6 7.67.4 8 7 10001-20000 6.4 6.3 6 5.5 20001-30000 4.7 4.2 4.4 4.2 30001-40000 4 3.1 3.33.4 2.6 2.6 2.62.8 40001-50000 2.2 2.2 1.9 2 1.6

0 At least once a More than 1 or 2 day a Once in a Once in a day once a day week fortnight month

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

Figure 02: Comparative visit analysis of income Group at unorganized retail after opening of Organized Retail Outlets in the cities under study (Figures in %)

12 11.3 11.4

10

8.6

8.4 8.2 8 7.2 5000-10000

6.4 5.9

5.6 10001-20000 6 4.6

4.4 20001-30000

4.2 4.2

3.4 3.7 4 3.3 3.3 30001-40000 3 3.1

2.6 2.8 2.6 2.2

2 40001-50000

2 1.3

0 At least once More than 1 or 2 days a Once a Once in a a day once a day week fortnight month

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

Figure 3: Comparative Visit Frequency Analysis (Before and Now), Jabalpur Area; Sample Size= 108;

30 27.7 25.9 26.8 25 22.2 20.4 21.3 20 18.5 13.9 15 10.2 11.1 Before 10 Now 5

0 once a day more than once weekly Forthnightly Monthly (change -5.5%) a day (change - (change +5.5%) (change (change +2.8%) 8.3%) +11.1%)

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

Figure 4: Comparative Visit (%) Frequency Analysis (Before and Now), Gwalior Area; Sample Size= 92; 30

25 25

25 23.9

21.7 21.7

20

18.5 18.5 17.4

15.2 15.2 15 Before Now 10

5

0 At least once More than 1 or 2 days a Once in a Once in a a day once a day week ( fortnight month (change by - (change by - change by (change by + (change by 6.5%) 6.5%) +2.2%) 6.5%) +2.2%)

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

Figure 5 Analysis of Shopping Choice Preference of Consumers for daily needs; Sample Size: 200

90.00% 80.56% 80.00%

70.00% 59.78% 60.00%

50.00% 40.22% Org. Retail 40.00% Unorg Retail 30.00% 19.44% 20.00%

10.00%

0.00% Jabalpur Gwalior

ELK ASIA PACIFIC JOURNAL OF MARKETING AND RETAIL MANAGEMENT

ISSN 2349-2317 (Online); DOI: 10.16962/EAPJMRM/issn. 2349-2317/2015; Volume 9 Issue 1 (2018)

Figure 6 Shopping in organized retail format increases Impulse Purchase (Sample Size 200) Source: primary data

80.00% 70.65% 70.00% 63.89%

60.00% 52% 50.00% 48%

40.00% 36.11% Yes (%) No (%) 29.34% 30.00%

20.00%

10.00%

0.00% Jabalpur(108) Gwalior(92) Total (200)