Journal of Critical Reviews

ISSN- 2394-5125 Vol 7, Issue 6, 2020

Review Article

ORGANISED IN AND CONSUMER BUYING BEHAVIOUR: A REVIEW OF LITERATURE

Dr. Sunil Kakkar1, Dr. Surbhi Mathur2

1 Associate Professor, Poddar Management and Technical Campus, Jaipur, , India e-mail: [email protected] 2 Assistant Professor, Poddar Management and Technical Campus, Jaipur, Rajasthan, India e-mail: [email protected]

Received: 05.02.2020 Revised: 20.03.2020 Accepted: 24.04.2020

Abstract The study mainly focused on the review of available literatures for the research idea and problems identified, on the evolution of retail activities, planning and strategies of retail activities and business, models and theories of change in retail activities, functions of retailing and behaviour of consumers associated with buying of goods and services with specific reference to Indian consumers. The study concluded that attributes like image, format and layout of the retail store, cleanliness, lighting, music, scent, information graphics in the retail store, facilities offered to consumers and after sale service of the retail store are the main factors leading to frame buying behaviour of consumers.

Keywords: Retail, Retailing, Organised Retail, Consumer Behaviour, Consumer Buying Behaviour, Review, Review of Literature.

© 2019 by Advance Scientific Research. This is an open-access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/) DOI: http://dx.doi.org/10.31838/jcr.07.06.139

INTRODUCTION Retailing is a process of contacting the end customers through The retailing sector has however faced many changes in its the medium of goods and services taking benefits of the various operation, format or working patterns, particularly in countries channel of distribution for the generation of profit and thus which are still developing. New formats in relation to the process occupies a major place in the field of business. Retailing is the of retailing have emerged such as a departmental store, discount function that is to be performed by the individuals known as specialized stores, super-markets, convenience retail houses, retailers. Supply chain management is the one of the major junk food stores, specialised stores, warehouse retailers and functions involved in retailing and is organized by the process of hyper-markets etc. The retail sector has come out as the most retailing. The goods and services provided by the retailers are for dynamic sector with the entrance of many players from both the use of the personal, family or household. The retailing sector domestic and international background and is alternatively is an important aspect for the overall mediators in the channel of exposed to many risks from both the internal and external distribution such as manufacturers to enable them to have a influences. With the result of these, level of competition has control over their production without having any distraction molded the operations of the retailing process in an entirely while maintaining end relation with the customer as many different manner. This requires on the part of the retailers to be efforts are involved in maintaining the end relation with the end innovative and creative in their position of distribution to have a user or the consumer. The process of retailing makes the good and valuable share in the overall system of trading. purchase of goods and services easy for the customer; therefore, it is very important on part of the retailers to be very vigilant in Retailing has been called as a business process which deals with their trading activities. The major feature of retailing includes: sale of products and services associated to the potential users for their use in their houses for the personal use or to use by family • Retailing is a process of direct interaction with the members (Berman and Evans, 2001)1. The Century 20th, has seen consumers. numerous changes in the sector of retail, especially in the well • The volume of sales involved in the concerned organised nations. Formats in the new era, such as a scenario is generally high. departmental store, discount specialized stores, super-markets, • Techniques of sales promotion are involved at this convenience retail houses, junk food stores, specialised stores, stage only. warehouse retailers and hyper-markets etc. have developed. • The critical factor involved in retailing is location and Retailing today is more organised and stores following the chain layout. types have been growing at the cost of shops functionally • The concerned process brings out more employment individually. The environment of retail is taking a very fast and opportunities. speedy growth, with a huge store size, improved concentration in • The process brings out useful information from the retail, and the optimum usage of available number of formats consumers and provides them to manufacturers to (Hollingsworth, 2004)2. This has taken a next level competition enable them to act accordingly. in the business of retail, motivating shopkeepers or retailers to • The retailing process also maintains a good open and expand their retail shops and diversify them to various competition in the market. types of formats available. • The retailing sector performs multiple tasks in order to provide the consumer information about the Evolution and Strategic Planning of Retail Activities availability of the products and attracts them toward The evolution of retailing is a broader concept including areas the products. like Economics, History, Geography, etc. Retailing has been evolved through many stages and thereby changed the

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operations in a vast manner. The first form of retail was the Location deeply influences the behavior of the consumers and barter system which involves the exchange of goods from the their reaction with regards to the different retail shops. other good. This was a major drawback in the retail sector and For the purpose, the retailer is required to make sure that the proves to be very difficult in implementation. With the passage of retail outlets are at a convenient location that is within the reach time, the barter system was abolished and the currency acts as a of the customer. proper intermediate of exchange of goods and services. After, hawkers turned out to be another form of retailing using HR Management pushcarts to sell their products which was further followed by The business of retailing is the business which used labor- the ration shops which facilitate necessity goods at nearby intensive technology which requires a key and major role of the places. Finally, the era of manufacturing comes out with small employees. Every business requires employees that are stores and specialty stores which act as a big revolution in the committed to the business that helps them in success and retailing sector. After that, the emergence of large chain store growth. It is considered that employees are the critical and most takes place and then finally big malls. valuable asset of the organization. For the purpose, the main focus should be put on committed as Strategic Planning of Retail Activities well as knowledgeable employees to bring a successful working With the growing competition, entry of new players, new operation. formats, new technologies and intensity of the operations in the retail era is demanding the retailers to adopt a strategic planning Distribution and Information System which could help them in having a proper knowledge of the Every retailer tries to reduce its operating cost that is the cost environment of retail. Retailing strategy has built up a bridge in associated with running the operation of the business and also understanding the world of retailing in a more enhanced manner. ensures that the required product is available to the customer as and when required. The use of complicated methods restricts the An effective retail strategy is required to identify the following: retailers to use some new and better system for distribution and information in relation to the goods and services. The total effect • The target market for a retail sector. of such operation is very high and can negatively impact the • The method adopted by the retailer to assess and retail sector. understand the needs of the market. For the purpose, proper time and consideration must be given to • The retailer should develop a strategy to have a developing an effective Distribution and Information System. sustainable competitive advantage that cannot be easily This will result in long-term success and early achievement of copied so as to derive the benefit for the long period. goals.

Any business the retailer is engaged in must have an advantage Unique Merchandise over the competitors such that to attract the customers and have Bringing out something new is a necessary element in the maximum advantage. Following strategies will enable the current retailing operation where there are large choices retailers in getting a better overview of the retail sector and available to the customers and if a particular outlet is not capture a greater share in the market: providing satisfaction to the consumers then it is very easy to make them switch over to its substitutes. • Loyalty of the Customers For the purpose, the retailers are required to have new and • Store Location creative ideas so as to provide the customer with more enhanced • HR Management quality and maintain them for a longer period. • Distribution and Information System • Unique Merchandise Relationship with the Vendors • Relationship with the Vendors Keeping good and proper relationship with the vendor is equally • Services offered to customers important as to serve the customer. The demand of the customer can be met only by the input that is being provided by the Loyalty of the Customers vendors. By developing a strong relationship with the vendor, the The term customer loyalty is the most effective strategy that can retailer can have the benefit of capturing a greater region and be adopted by the retailers to gain a section of the customer. getting available the goods at right time. Customer loyalty is a process of building the trust of the For the purpose, the retailers are required to maintain cordial customers by providing them good quality products and services. relation with the vendors. Building up the trust of the employees is the most difficult as well as a strong base for developing an effective retail operation Services Offered to the Customers pattern. The process of building the trust of the employees through For the purpose, the retailer is required to build a good brand customer service is a time-consuming process and required great image, maintain good relationships and provide quality goods efforts as good service is a strategic and a valuable asset. To earn and services. an image is easy but to maintain that image in long run is difficult. For the purpose, it is required by the retailers to have a Store Location knowledgeable salesperson who can convey the information in The second important strategy that requires proper observation the best possible manner. on part of the retailers is deciding the place for the retail outlet.

Table 1.1: Strategic Measures Strategies Measures to be undertaken Customer loyalty • Develop a brand image • Ensures deeper understanding of customers • Develop customer connectivity Location • Location should be in easy reach • Avoid overcrowded and unpleasant places.

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Human Resource Management • Committed employees should be admitted. • Proper skill and knowledge must be there among the employees. Distribution and Information • Effective channel of distribution System • A communal system with the vendors. Unique Merchandise • Innovative ideas should be adopted • New ideas should be invited for better thinking. Vendor Relation • Ensure regular supply. • Coordinated activities should take place for better working. Customer service • Knowledgeable employees should be employed. • Proper quality of products and after sales service should be taken into consideration.

Marketing as and the associated concepts, including the mix of marketing, in the phase when the producer of the goods was called as ‘king'. Post-war, when there was shortage of goods in need arises, there arises the concept of production. Inevitably, buying and selling activities called as retail, arises and largely controlled by producers. During last many years, it is observed that retailers are growing in numbers and size with sophistication as well.

Source: Smitha G (2011). Impact of Organised Retail on Unorganised Retail in India.79 Figure 1.1: Retail Growth Cycle

Retail Houses, large in numbers, have taken the roles which was earlier played by wholesalers traditionally, and they further lead towards the dominance of the channels of marketing and the associated activities. Now, it is fine to showcase a view of FMCGs marketing that is absolutely driven by retailers and shoppers (McGoldrick, 2002)3. Within this preview the producers may showcase as part of the supply channels and they were having very limited power and ability to lead and influence the strategic planning and marketing of large number of retailers. Shopkeepers and Retail Houses who works on a very high and large scale have genuinely derived from general shop holding to marketing in the strategic way.

Behavior of Shoppers or Buyers in Activities of Retail The behavior of the customer is a matter of deep study as it involves the decision with regards to their purchase, what are the factors that tend them to buy etc. The customer behavior patterns are not fixed and therefore resist change with regards to some activities taking place. To study the consumer behavior patterns, their inner drives need to be identified, that is the direction that depicts about what the customer wants to shop, and another is the intensity, that is how much they want. Retailer for the success and growth is required to understand and have knowledge of each product which can have a great impact on the target customers. The taste and preferences based on which the consumer decides their purchase is the Customer’s buying behavior patterns.

Table 2.1: Buying Behavior Patterns Place of Procurement: Product Purchased: Period and Involves attracting customer Availability of Regularity of based on location. product at a single Purchase. roof. Method of Purchase Response to Sales Customer Service Promotion Methods

Place of Procurement tends to buy from the place where the goods are available The place from where the goods can be available is the first relatively cheaper. As such, when a customer buys goods from factor that affects the consumer behavior pattern. The customer

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different shops their devotion towards a particular shop cannot According to Abraham Maslow, 1940 in his study states that be determined. consumers always buy to satisfy their needs. These needs may be Study of the place of purchase of the consumer is an important in related to physical, biological, safety, security, love, affiliation, appropriate selection of location and selecting a distributor in prestige, esteem, or for self-fulfillment. Image and Prestige are close contiguity. the needs which are intangible, and the people or consumers concerned will pay for it. Personal qualities and characteristics Product Purchased are of high significance to establish how consumers meet their This factor shows the product that a consumer purchase and how needs. many units of that product he has overall purchased. The behavior of the customer is dependent upon: Consumers with high need generally analyse and evaluate more and make suitable and most useful and optimal decisions related • The availability of the required product. to purchase in store. This is in line as they generally do not react • The requirement of the desired product. to displays and in-store promotions unless any significant • Perishability of product discount or reductions in prices are offered. • Requirement of store facility • Purchasing power of the customer Retail Trends in Indian Context and Change Associated In the world scenario of retailing sector, also growing at a Period and Regularity of Purchase very fast pace. India is adopting many new strategies and Retailers are required to maintain a balance of time with regards techniques to grab the retail opportunities and is anticipated to to the availability of the customers. The time of purchase with grow soon. India is on the boom of retail operation but however regards to the consumer patterns is influenced by the following is exposed to many challenges such as: factors: • Accumulative availability of international brands • Weather conditions • Increased number of malls • Seasonality • Easy accessibility of retail space • Location of the customer India has come a long way from a tradition ration shop to the With time, alternatively, regularity of purchase also affects way of a mall which requires more focus on presentation, layout, consumer behavior patterns such as the category of product, the efficiency, andambiance. The major factor influencing the change extent of requirement involved, the pattern of living and in the retailing scenario in India is the increased disposable festivals. income of the people, improving standards of living, and enlarged international exposure with proper knowledge and information Method of Purchase of the customer. India has youth population both from a large The way customer makes it purchase is defined as the method of and middle class which has significantly contributed to the purchase. It involves factors such as: phenomenon of retail. Apart, tourist spending is also acting as a tool in boosting up of the retail era. • The mode of payment used by the customer that is cash or credit. In addition, the two categories in the retail sector which are • The person accompanied by the concerned customer. promising good opportunities to the retail sector is food and grocery. Other areas include jewelry, apparel, and consumer Response to Sales Promotion Methods durables. Whenever a customer visits any retail outlet he or she is exposed The challenges faced by the retail sector can cope up with the to many methods of sales promotion. These methods attract the following factors: number of customers in the retail outlet. The method used by the retailers as the promotional method is: • Realistic cost-cutting • Restructuring tangible assets • Attractive display • Being in sync with the popular technologyz • Demonstration • Evolution of business model to increase profits • Distinct pricing • Enhanced customer experience • Publicizing • Using data analytics for growth planning

• Omnichannel presence Behavior of the Consumers generally talks about their decisions related to their shopping and purchase. Companies focus to know Pattern of Purchase of Retail Customer in India and understand the behaviour of people as consumers so that Pattern of spending and shopping is differentiated into spends, they can better plan and implement the suitable marketing regular and lifestyle. The first one comprises of necessities of life, strategies that will result in amount of sales and improved while lifestyle spending comprises of spending on luxurious loyalty towards any brand. items like a computer, mobile phone, etc. In an analysis of pattern

of consumer purchase and spending in past decade observed that We appreciate two common ways to analyse and evaluate the the consumer on an average has been spending on different sense of belongingness and motivation behind the purchases goods in an increasing node. Lot of factors are identified affecting made by consumers. The two ways are: what they want and how buying patterns of consumers like attitude towards consumption, much they want. Companies need to know and understand the price changes, new products in the market, raising the level of principal motivation to focus and target the budding customers. aspiration, growing consciousness about the products, services The other means to evaluate the behavior of the consumer is and brands with increasing rate of urbanization. analyzing whether the interest of consumer leads to making final purchase. Shopping habits are different among all the sections of the society like middle class people consider necessities as their top Purchasing and Shopping behaviour of consumers depends upon priority, followed by lifestyle products. The upper-class people the needs and wants of an individual and factors interpersonal in spend more on luxury goods. The super-rich class of people nature. To understand the said influences, researchers always try spends on ultra-luxury goods. The focus of pattern in shopping in to read the mind of the consumer and to identify physical and Indian Consumers has changed from price orientation to design, social influences on the decisions related to their purchase. quality and trendiness.

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9. Sophisticated customers: Customers are becoming more Changing Trends in Retailing aware and vigilant about the products and their buying In the economy of global world, one of the fastest growing behavior because of the evolution of the internet facilities. economies is retailing and is under the phase of transition all For example, Indian consumer avail about 30% of the over the world. The changing behavior of the consumers is one information about the product, their prices and other of the main reasons of the increased popularity of the retailing. related aspects through the medium of internet. This is However, this change is possible due the families of double shown a truth in case of electronic products, bookings of income and breakdown of the joint families. Apart, the changing hotel, travel packages, phones etc. This shows that the lifestyles and positive patterns of demographic behavior are also retailers are required to serve the customer in a better the reasons of the boost of retail sector. Further, the consumer scenario. tends to have sopping in the areas where they can easily get the 10. The difference between the operations of the organized and items of groceries; food, and other items of daily requirements. unorganized (traditional ‘kirana’ shopping) retailing is These factors have significantly contributed in the growth of becoming small due to establishment of malls and increased retailing in the Indian economy. number of middle and small class families. In accordance to ‘Deloitte Haskins and Sells’, retailing sector is boosting at a The trends that have emerged in recent years and continue very fast pace and can contribute to a great extent soon. In to expand are as follows: 2007 retail organization has shown a remarkable growth of 1. Replacement of traditional retail format with new and all times due to establishment of new malls, increase modern retail format has opened a new scenario for Indian disposable income and easy availability of credit facilities. youth. This is possible due to large investment in the In addition, the introduction of new and modern retail modern retail format. As such it can grasp the attention of concepts such as facilities of credit, delivery of product to the public by offering many facilities and benefits such as the door, and other services that adds a great value in bank branches, saloons, café of internet and other services shaping a better retail structure and pattern. that facilitate the consumers with all benefits under a single 11. Skills requires for retailing: Retailing sector in India is at a roof. booming stage. However, success and boom of retailing is 2. One of the major factors in this regard also includes the required to be proved. To feel the impacts of the success an internet facilities. Increased consumption of internet and adequate stage is required to be built. For the purpose, it is reduced prices has enabled the consumers to get a wide required that retailers focus on size of store, traffic level, variety of choices from all over the world. Retailers are also and the main aspect that involves employing trained staff getting advantage of this facility by bringing new products that can handle the customer in a better and enhanced way. and informing them through this medium to have a better promotion. Some of the areas where the need of specialized skills is must 3. Reliance digital, music world, etc. have their stores in most are: of the malls of the country. Malls have get a great way on their operations due to departmental stores that can a) Managing of Commodities: This involves management of provide the customers with wide variety under one roof. inventory, selection of vendor, presentation of the products, 4. To target different sets of consumers and serve the needs of pricing of the products, making a planning in relation to the wide range of customers from all over the world, there is a arrangement of products. great need of effective sales promotion techniques that can b) Management of store functions: This involves presenting provide information to the customers in relation to the the inventory, maintain good relations with the current services and products. For the purpose, skilled and trained customers, making new strategies for the attraction of new personnel are required who can successfully handle the customer for enhancing better operations. consumers wants and grievances. However, nowadays c) Management of strategic decisions: This involves planning retailers are not sticking to the traditional methods of on the aspects of target market, marketing position, location promotion but bring up new promotional techniques such of the site, developing a good competitive advantage. as home delivery of products, use of new format of d) Supervision: Advertising, investment, social resource and payments, updated technologies etc. Apart, the retailers are such related. using enhanced systems to build up a good brand that can enhance productivity and growth level. REVIEW OF PAST STUDIES 5. New format of money value: The use of new format of Evolution and Strategic Planning of Retail Activities money such as credit and debit cards for making a purchase Mathew J, Mukherjee A. (2010) studied that retail in the new era is effectively a new concept and gaining immense positive called as modern era arrived in the nations of developed nature demand. Credit and debit cards generally called as plastic occurred in three phases one after other. The Phase I, happened money facilitate the customers in a large spending resulting in the beginning of the middle of 1990s in Southern America, in the boost of retail sector as well. The use of plastic East of the Asia outside , North-Central of Europe and money is increasing to a great extent and will be increasing Southern Africa. The Phase II existed during the middle to last more in the next five years. 1990s in Mexico, Central America, Southeast Asian countries, 6. Remoteness – No restriction: With the increased public Southern-Central Europe. The Phase III, started in last of 1990s transportation, enhancement of roadways, railways and and starting of 2000s in parts of Africa, some countries in Central 4 highways and an overall enlargement of infrastructure has and South America, Southeast Asia, China, India, and Russia . facilitated the customers to reach from one place to another Sellers, 1990; Smith, 1989; Parikh, 2006 have the view that the in an easy and early manner. The customers do not hesitate environment of retail in the world today is going on with rapid to travel if they get the appropriate quality of the desired change than ever seen before and is features by tough product. competition and customers with lot of wants and needs and have 7. To spread the risk and the uncertainty factors many large number of expectations associated with a their experiences retailers, developers of real estate and brands have tied-up related to consumption5. for a better partnership so as to bring huge investments. 8. The support of government on infrastructure, relaxation on Baker, Berry, & Parsuraman, 1988 focused on the physical FDI further has speeded up the growth of organized retail in environment which in turns create a representation which can be India. seen or the image of a firm serving services only6. They focused on the retail environment which was changing shape during the

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phase and improving the retail culture representing the image of cycle of the product. Retail Stores and formats tend to move from any organization. They were focusing on customer preferences the innovation to maturity with rapid pace.16 and satisfaction during the period. Lewison (1997) in his study explained the important Morschett et al 2005; Ghosh 1990 were having a view over the components of retail like choice of format in retail, target context and concept of the sector of retail, the image associated consumers and competitive advantage of retail sector. He stated which is also called as the image of the store or can be can be that these three factors are highly significant for the success of associated with the attributes of the related store. These all any retail store and the factors associated can be influential for attributes are called as the marketing mix of the retailer7. In the customer satisfaction. 17 study they studied about the mix used by the retailers to attract the consumers. Goswami P, Mishra M. (2009) studied that the selection of the product, collection of products at a place and behaviour of store Akehurst and Alexander (1995) both showcased the major personnel are few of the important factors in determining the developments in the retailing in international scenario which choice of the customers with cleanliness as the most important suggested the managers of retail firms and enterprises to be variable no matter what kind of the store it is.18 aware of multiple factors and to explore the number of opportunities in the market globally8. They have suggested Baltas and Papastathopoulou, 2003 studied and stated that multiple ways to exploit the international markets for the customer is attracted towards location of the store which is retailers. regarded as most important variable. The shopper in self-label has a very low status, socially and economically, which tends to Howe (1998) suggested the points on the environmental issues fit the most satisfactorily orientation of the purchaser. The of retail which were facing a change constant during that phase, researcher also focused on customer satisfaction which is however, when the market is not dynamic and there is high regarded by the in-store information, frequency of shopping, best competition, retailers are willing to implement a strategy best in price and value for money19. its kind. This is a common understanding of managers in retail specific organisations need to draft and to launch a planning Srivastava (2008) in the study observed and stated that strategy that can give an organisation a new shape9. organized retailing, world-wide, has played an important role in the GDP and employment of the nation. According to the Morganosky (1997) and Martin, Howard, and Herbig (1998), researcher, the ratio (composition) of organized versus have showcased that the globalization needs to consider the type traditional retailing is increasing in countries such as the US of the store, the store location, and how products are to be (85:15), Taiwan (81:19), Malaysia (55:45), (40:60). selected, distributed, and displayed. These all possible Indonesia (30:70), China (20:80), and India (3:97). The above components and variables are the major items that are called to stated data explains the organized versus traditional ratio of lead and influence how firms of retail manage their channels and retailing for each country20. partners10. Behavior of Shoppers or Buyers in Activities of Retail Lewison and DeLozier, 1986, Sparks (1995) has stated the Schiffman and Kanuk (1997) stated in their study that so many reference to all possible factors associated to the process of theories related to behaviour of consumers were based on the 11. globalisation They stated that the factors associated like notion that people generally act rationally to maximize their location and layout of the store are the essential factors which satisfaction in the purchase of products and services21. can lead to retailing success. Solomon (1996) analysed and explained in his study that a Sparks (1995) has stated in his study about a number of factors consumer generally identifies a want, a need or a desire, makes a and has focused attention on the market in Japan. Sparks has purchase, and then uses the product during these three stages in conducted a study of Japanese Company called as Seven-Eleven the process of consumption.22. and made significant contributions. He also stated that the organization is an efficient retailer and success focused on Andreason (1965) proposed a model of consumer behaviour technology, systems and relationships with producers, which recognizes the significance of consumer decision-making wholesalers and retailers. He further stated that the organization process. It also focuses on the consumer attitude but not related have had to redefine systems12. to repeat purchase behaviour23. Engel et al., 1995 have studied the physical attributes of the retail Sheth et al. (1991) observed shopping motives, shopping options, stores such as lifts, lighting, air-conditioning, toilets, layout of the and choice calculus, as significant factors for preference in store, ambience, flooring and architecture13. They studied that shopping. According to him, motives in shopping comprises of the factors associated in the study have a great influenceon the consumers’ needs and desires and are influenced by personal behaviour of consumers specially the buying behaviour of values and characteristics related to product.24. consumers. Sherrell et al. (1989) observed in the said study that consumers Hildebrandt (1988) stated in his study that the retail sector’s enjoy and gains pleasure with product selection as the outcomes success happens only due to two major factors like image of the of his/her shopping experience25. Consumers select merchandise store and measurement model of the same. Further, he stated which can satisfy the need and also searches for a better that the price factor and level associated with price is used to shopping experience where consumer wishes to enjoy and feel predict the future performance of marketing as the measure of pleasurable while shopping. success in retail business.14. Gruen (1973) endorse in early studies that the ‘mall-tainment' Davidson et al. (1976) studied that the departmental store took trend is entertaining consumers while purchase.26. somewhat around 80 years to come up to the level of maturity, on the other hand, in of America, the home Taylor and Cosenza (2002) in their study analyzed that improvement sector took almost 15 years down the line. 15. consumers perceive malls as a perfect place for shopping where they can socialize also27. Both agreed that young consumers Brown (1987) has stated the ‘wheel of retailing’ and the ‘retail during the period enjoy socializing with many people and enjoy life cycle’ as the two most important influencing factors. The first their purchase as well. one talks about a very new retailer type because of lowest prices, margin and status operators. The second one talks about the life Westbrook and Black (1985) have observed and recorded in their study that pleasure in shopping include interaction and

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meeting with friends, family or even strangers that one can meet workforce of the nation and have over 5 million stores, 96 on site28. percent of the stores traditionally very small41. Barich & Srinivasan (1993) in their study focuses on store Venugopal, 2001 observed that the retail stores and industry components and listed some of the store components like variety doubled between 1978 and 1996 at all India level42. of products, quality of products, attractiveness in store, affordable prices, convenience and ease in purchase, and services Sarma (2000) noted in the said study that Indian retailers have offered to customers.29. very little bargaining power with the producers due to their small size. That is not the case with retailers in developed Wakefield and Baker (1998) observed that facilities provided by countries43. super malls are focused to make the shopping experience more comfortable and enjoyable30. The ‘kirana’ store situated in every corner of the city and rural roads is a key component in the retail in India. Sinha, et. Al. Sirgy and Samli (1985) in their study noted and explained that (2002) identified factors that influenced choice of the consumers the loyalty in shopping refers to specific choice and tendency of a store. Convenience and Merchandise were the two most related to shopping experience in an identified and specific important reasons for choosing a store.44 shopping place like shopping mall31. Nathan (2001) identified and noted that the traditional formats Spiggle and Sewall (1987) stressed in their study on the factors of retail in India like hawkers, grocers and shops do exist which can influence the selection of a shopping place, and can be with modern retail formats of the day like supermarkets, and identified as: characteristics of consumers, psychological state of hypermarkets45. a consumer and characteristics of a shopping place32. Radhakrishnan (2003) focused in his study that the modern Chetthamrongchai and Davies (2000) studied that consumer stores are larger in size, have bulk stock keeping shelves, operate behaviour is a combination of time and motivation during on self-service with very good store ambience46. shopping and not only based on variables related to social and demographic variables or attitude of shopping33. Fernandes et. Al. (2000) observed and recorded that modern retail formats tend to develop in the categories groceries, Kim and Park (1997) studied and recorded that almost 70 % of electronics, apparel etc.47. consumers who enjoy shopping visit shopping stores with intervals randomly and 30 % at fixed intervals and there are Ramaswamy and Namakumari (2002) studied that pace of variations between “random” and "routine". Routine consumers movement is slow in retail formats like supermarkets, have opportunity cost a little high where it is difficult to visit department stores, malls and discount stores. They identified stores more often and/or to switch stores. These consumers factors like availability of products at lower prices, convenient 48 generally spend more money for a given shopping experience34. shopping, and shopping with entertainment. Block and Morwitz (1999) noted that consumers list almost 40 According to Anand and Rajashekhar (2001), retail formats percent of the products purchased, and 80 percent of the cannot be scaled easily in the country. Companies have products on the list of shopping were purchased in real35. experienced that it is not easy to expand beyond some regions and cities.49 Thomas and Garland (1993) observed that consumer’s shopping lists which they prepare in writing reduces their average Sinha, Mathew and Kansal (2005) noted that food and grocery expenditure. On the other side, children during shopping shopping includes shopping for grains, pulses, fresh fruits and experience increases the purchase expenditure and time spent in vegetables, packaged food, personal products and some 50. store36. household goods Miranda et al, (2005) focused in their study that satisfaction Sinha and Banerjee (2004) focused that the key elements for during shopping in a store does not guarantee loyalty of the choosing a grocery store in India is closeness to the residential 51 consumers for that store. Loyalty generally comprised of reward place and personal relationship with the shopkeeper. schemes offered to buyers, location of the store, travel distance Sinha (2005) studied and segmented the types of the stores like to the store, signage in the store and sales assistance in the kirana stores, upgraded and developed kirana stores, store37. supermarkets, and wholesalers. They Stephen Byers (2000) identified that consumers finding good recommended that product’s type influence the buying and 52. deal are a key driving force in developing markets competitive in shopping patterns of consumers nature38. Pattern of Purchase of Retail Customer in India Kotler and Armstrong (2008) observed that purchases made by Decline in shops small has different inferences upon its present the consumers are influenced by cultural, social, personal, and consumer’s contingent upon locations and other choices for psychological characteristics. Subcultures that include shopping. The closing of a home-grown locality shop with a nationalities, religions, racial groups, and geographic regions also nearby would mark the residents of a resident play a significant role in shopping behaviour of the consumer. community in a different way related to the closing of the only Likewise, other variables such as income, age and life cycle stage, shop in a insignificant area without a store nearby (Smith and education, occupation, are also significant39. Sparks, 1997)53. Seiders and Tigert (2000) identified in their study that Martineau, 1958, Doyle and Fenwick, 1974-1975, Amirani and convenient location of the store, variety of products, affordable Gates, 1993 detected that the idea of image of the store, merited and reasonable prices, familiarity with the store are the common a countless deal of academic and empirical devotion, during the reasons for a better shopping trip. They also identified friendly last 40 years54. service, cleanliness, fast check-out as the other common factors associated with a comfortable shopping experience40. Engel et al. (1990) studied that the image of the store can be used as a tool for marketing of products and service providing Retail Trends in Indian Context and Change Associated valuable signs to managers about the most and the least Aggarwal (2000) observed Indian retailing under a process of important features to customers, and hence, the acumens for the 55 evolution and transformation of the same dramatically. The conception of marketing mix. employment in retail industry is up and above 8% of the

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Monroe and Guiltinan (1975) focused the significance of research Parsuraman et al., 1988 recommended that physical in academics into image of the store.56 environment creates an image of a retail house and the services associated72. Dick and Basu, (1994) abstract loyalty of consumers as the relationship between the attitude and patronage behavior.57 Martin, Howard, and Herbig (1998) studied that type of store, the location of the store, and how goods are to be selected, Darden and Dorsch,1990 studied that store patronage behaviour distributed, and displayed are the major factors for the success of is an important factor to be associated with buying patterns of retail growth73. the consumers.58 Hildebrandt (1988) recommended that store image is an Radhakrishnan (2004) recorded that in the recent days the important factor to be associated for the success of retail smaller stores are the most affected stores in comparison with growth74. large stores like hypermarkets, and supermarkets.59 Carpenter and Moore, 2006; Teller et al., 2006 witnessed that Vijayraghavan and Ramsurya, (2007) detected that although old selection of the product, assortment and courtesy of service and traditional stores of retail with almost more than 95 % of the person at store with cleanliness being the most significant total sales if the nation, mom and pop stores are not able to strive attributes for retail success75. with new age retailers.60 Baltas and Papastathopoulou (2003), described that location, in- Bureau, 2007; Jha and Guha, 2007 stressed the political store information are important factors associated with retail trepidations in excess of the loss of means of support by lakhs and growth associated76. who run local small kirana shops also need to beaddressed.61 Dinlersoz, (1999), and Rao (2006) identified that the important Thakkar and Bhatt, 2007 stated in their study that organized role of FDI in supplementing domestic resources and in ensuring retailers like Reliance Fresh is offering small shopkeepers and employment generation in the development of an economy is retailer houses as well as individual persons to take franchisee unquestionable77. (Retail industry report (2006). on a profit sharing basis and the Bharti-Wal-Mart also intends to have the similar model by providing the employment Sreejith and Raj (2007) observed that the modern retail in opportunities to 60,000 people by 201562. organised format is growing at the rate of more than 30% annually78. Seiders et al, 2000 identified that low price, quality and 63. assortment as the reason for store choice Recent Decade in Organised Retail and Consumer Buying Broadbridge and Calderwood, 2002 stress upon that retail Behaviour houses must focus attention more on the needs and wants of the Vanjari & Thorat (2020) stated that growth of modern retail is residents64. complement with the growing stature of conventional retail formats. With less regulatory and structural obstacles, the Moschis et al, 2004 studied that consumers are very price- development of modern retail can touch the greater heights79. conscious, and would like to go for shopping in a store house where they can have special assistance services (such as parking, Kumar J. & Marishkumar P. (2020) suggested the role of service on delivery services, easy return of the products and easy quality as an important dimension for customer satisfaction in 80 exchange and refund)65. organized retail store . Kjeldgaard and Askegaard, 2006, St-Maurice and Wu, 2006 Neela M. & Abirami R. (2020) stated that retailers of organized observed in their study that homogeneity of consumption formats are not fulfilling the expectations of rural consumers. practices worldwide is misconstrued and shoppers in India need There is lack of effective business models which understand and to be studied separately to identify which store variables fulfill the customer requirements81. 66. contribute to loyalty of a store Dash A. & Mohanty A. (2019) investigated the motivation of Dr. Paromita Goswami, Dr. Mridula S. Mishra, 2009 focused in purchase from organized retail is because of attractive their study about the willingness of consumers to move from old promotional offers and availability of wide variety of products unorganized stores to large organized retail chains and the under a common roof. Still, unorganized formats are preferred 82 factors associated 67. for daily shopping and convenient business hours . Rani N. & Ramachandra K. (2019) recommended the measures of Changing Trends in Retailing customer loyalty in organized retail stores. Thus, skilled and Following studies throw more light on the changing trends in trained manpower and better store management practices can retailing since the evolution: enhance the customers’ footfall in retail stores83. Srivastava, 2008 observed in his study that retail sector Nair K. (2019) reviewed the demand and growth of retail contributed highly to the development of any country and in industry in India. The reasons for development are growing 68. providing employment at a large scale Therefore, it is middle class customer base and young consumer important to understand the factors which can influence the demographics84. growth of retail industry. Suresh A. & Ramanathan V. (2019) determined the factors Sellers, 1990; Smith, 1989; Parikh, 2006: Modern retailing is influencing consumer behaviour in grocery stores. It was determined by more intense market competition and refined and analysed that wide variety of products, sales promotion schemes, arduous customers who have great hopes related to their parking facility, availability of fresh products and home delivery 69. consumption patterns and experiences influences purchase decisions85. Lewison 1997 observed that current retail houses and formats Jaswal N. & Gupta S. (2017) evidenced the growth of organized move from innovation to maturity. There are three significant retail formats due to increasing preferences, changing customer components – choice of retail format, to target a selected group taste and emerging technology. However, ease to purchase and 70. of customers with competitive advantage credit facilities make conventional kirana stores favourable in Akehurst and Alexander 1995 studied about the modern formats rural and semi-urban markets86. and means of retail with all the factors associated for the success of retail.71

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Ramesh B. & Sethuraman S. (2016) conclude the increasing 7. Morschett, D., Swoboda, B. and Foscht, T. Perception of preference of organized retail outlets. The authors stated that in- Store Attributes and Overall Attitude towards Grocery line arrangement of goods in retail shelves, speedy billing Retailers: The Role of Shopping Motives. International system, and availability of wide range of products as motivators Review of Retail, Distribution and Consumer Research for consumers to shop from organized retail87. 2005; 15(4):423 - 447. Ghosh,A. Retail Management. 2nd Ed. The Dryden Press, Jain R. (2015) studied lifestyle, motivation, personality, Chicago, IL; 1990. convenience and value as significant factors influencing urban 8. Akehurst, G., and Alexander, N. The internationalization 88 consumer purchase decisions in organized retail stores . process in retailing. The Service Industries Journal 1995; 15 Pathak S. and Gupta M. (2014) evidenced the proliferation of (4):1-15. organized retail because of ambience, greater product variety, 9. Howe, W. S. Vertical marketing relations in the UK grocery more assortments of products, facilitation of parking and trade: Analysis and government policy. International security facilities89. Journal of Retail and Distribution Management 1998;26 (6): 212-224 Khan, et al. (2014) stated that quality of product and service as 10. Morganosky, M. A. Retail market structure change: critical factors to gain customer satisfaction90. Implications for retailers and consumers. International Journal of Retail and Distribution Management 1997; 25 Durmaz Y. (2014) investigated the impact of psychological (8): 269- 274 factors on Turkish consumers. Authors concluded that happiness 11. Lewsion, D. M., and DeLozier, M. W. Retailing. Columbus, is the key variable which induce consumer to shop. Also, Ohio: Merrill Publishing Company; 1986. consumers in Turkey are much informed on aspects of consumer 12. Sparks, L. Reciprocal retail Internationalization: The law and rights91. southland corporation, itoyokado and 7-eleven convenience Mathur M. & Goswami S. (2014) studied store atmospherics as stores. The Service Industry Journal 1995; 15 (4):57-96 significant influence on attracting customers’ traffic in retail 13. Engel, J. F., Blackwell, R. D., & Miniard, P. W. Consumer stores. Additionally, product quality and variety also influence behavior. 8th ed. Forth Worth, TX: The Dryden Press; 1995. the purchase decisions92. 14. Hildebrandt. Store Image and the Prediction of Performance in Retailing. Journal of Business research 1988; 17: 91-100. Rishi B. (2011) studied factors affecting apparel buying in 15. Davidson, W. R. et al. The Retail Cycle. Harvard Business organized retail. It was found that experience purchase, style & Review 1976; 54(6): 89-96. fashion and pricing as significant factors influencing buying 16. Brown, S. Institutional change in retailing: A review and decision of consumers93. synthesis. European Journal of Marketing 1987; 21(6):5-36. 17. Lewison, D M. Retailing. Sixth Edition, Prentice Hall Concluding Remarks International Inc, United States; 1997. The review of past studies on organised retail and consumer 18. Paromita Goswami, Mridula S. Mishra. Would Indian buying behaviour in India gives an insight that organised retail is consumers move from kirana stores to organized retailers the promising sector globally and there are large numbers of when shopping for groceries? Asia Pacific Journal of factors in its formulation like image of the store, layout of the Marketing and Logistics 2009; 21 (1):127 - 143 store, format of the store, product line at the store, product range 19. Baltas, G. and Papastathopoulou, P. Consumer Behavior, at the store, in-store graphics at the store, cleanliness at the Athens: Rosili Publication; 2003. store, facilities at the store, wide variety of products at the store, 20. Srivastava R K. Changing retail scene in India. International convenience of the customer at the store, home delivery, parking Journal of Retail & Distribution Management 2008; 36 (9): at the store, availability of fresh products at the store, product 714-721. quality, speedy billing system, after sale service, exchange and 21. Schiffman, L.G, & Kanuk, L.L. Consumer Behaviour. Sixth refund, etc. Edition, New Jersey, Prentice Hall; 1997. 22. Soloman,. Consumer Behavior. Prentice-Hall, Englewood It also talks about the behaviour of the consumers and their Cliffs, NJ; 1996. responses towards organised retail in presence of the factors 23. Andeason,A.R. Attitudes and Consumer Behaviour : A associated. Decision Model in New Research in Marketing (Preston).

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