Academic journal article IUP Journal of Marketing Management

Shopping Proclivity for Hypermarkets: An Empirical Study

Academic journal article IUP Journal of Marketing Management

Shopping Proclivity for Hypermarkets: An Empirical Study

Article excerpt

Indian retailing has been experiencing paradigm shiftdue to structural changes within and competitive forces around. The concept of organized retailing is nothing new in the Indian context and has been proliferating with generous pace for more than two decades. Today, all the cities boast of large retail stores having most of the household items under one roof. The success stories of big retail giants abroad and India in particular manifests a growing propensity for buying-habits convergence globally. This study attempts to investigate the factors influencing consumers' shopping preferences for hypermarkets and further examines the key discriminating attributes on the intensity of shopping premise. The study advanced in the paper would provide enough insights to the retailers about the buying criteria considered most important and the amount of impact they exert on the shopping behavior of consumers. It further renders scope to the decisionmakers for framing strategies in consonance with the changing needs of the shoppers.

Introduction

For many years, the academic fraternity has been engaged in delving out the constructs of multiple dimensions attributing heavily and affecting succinctly to store patronage. The sagacity of engagement is justifiable in the sense that it offers plausible insights into the shoppers' cognitions, elements configuring it, and finally, shoppers' patronage behavior. The paradigm shiftis evident in the past two decades as consumers have become increasingly more sophisticated and demanding for the availability and abundance of products, services, information and technology, as well as a new abundance of retail stores and channels (Terblanche and Boshoff, 2004). In addition, the shopping experience has become an essential component of consumers' lives and consequently consumption has become an act of experience production and an expression of the self or self-image (Firat and Dholakia, 1995). The retailers in turn are sensing change and strategizing accordingly to turn shopping into a high-value pursuit and are generating consumer value as an important source of competitive advantage (Woodruff, 1997).

Indian retailing has been experiencing paradigm shiftdue to structural changes within and competitive forces around for the last one decade. The retail sector in India was valued at $342 bn in 2007 and is expected to reach $530 bn by 2012. In addition, investment in hypermarkets is expected to be over $35 bn by 2013, which would be 33% of the total investment in organized retail by 2013. It was estimated that there would be 1,400 hypermarkets with 66 million sq. ft. of retail space by 2010, generating revenue of $47.17 bn (Business Standard, 2010). The unstoppable success of hypermarkets is chiefly attributed to growing personal disposable income, rapid development of Tier II and III cities, availability of quality retail space and recent entry of big industrial houses into retailing with focus on large store formats (Cygnus Business Consulting and Research, 2007). The achievements are further attributed to the hugeness of hypermarkets and potency to accommodate enormous range of products under one roof, including unbeatable combinations and full lines of groceries and general merchandise. Thus, hypermarkets render wide scope to satiate all routine shopping needs of the customers in one stop. The hypermarkets that are successfully increasing their business base down to the Tier II and III cities include Big Bazaar, Spencer's Retail, Vishal Megamart, Marks and Spencer, and Reliance Fresh.

Despite the growing importance of planned, centrally-managed and enclosed shopping centers in the retailing sector, the understanding of concerning sources and outcomes of customer satisfaction with this kind of shopping malls is limited (Anselmsson, 2006). Although organized retailing is growing at generous pace, yet it contributes only a meager chunk (4%) of total retail market in India (Knight Frank Research Report, 2010). …

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