DETERMINANTS OF CONSUMER RETAIL FORMAT CHOICE BETWEEN TRADITONAL AND MODERN RETAILERS IN PAKISTAN

Abstract

The retail sector is experiencing a transformation with the entry of modern retailers in Pakistan. As a result, now consumers have a choice of shopping either at traditional or modern retailers. The study is aimed at finding out the determinants of consumer retail format choice between traditional and modern retailers. To this end, primary data were collected through personal interviews of 250 respondents who were intercepted randomly while shopping at different retail places in Lahore and Faisalabad - the two highly populated and major cities in Pakistan. Descriptive statistics, factor analysis, and binary logit model were employed for the analysis of data. Results indicated age, being accompanied with family while shopping, income and five store-related attributes such as store design and environment, promotion, product quality, employee behavior and location as the important determinants of consumer retail format choice in Pakistan. The study recommends that traditional retailers need to upgrade their businesses and align themselves with changing consumer preferences. Modern retailers should make their store design and environment more attractive, ensure product quality and improve promotional strategies and employee responsiveness for enhancing their customer base. Findings can be useful to the strengthening of both the retail formats in Pakistan.