Factors Influencing Consumer Purchase Decisions at Organized Retail Stores in Ludhiana

Abstract

Indian Retail Market is going through a transition phase. With retail environment getting modernized and customers gradually shifting from the culture of shopping at small neighborhood kirana stores to large hypermarkets. With more and more fancy shopping option in hand in form of growing number of malls and supermarkets and with more number of international counterparts entering the sector, consumer is being spoilt for choice. The share of organized retail in total retail sector in India is growing at a remarkable rate. Many domestic as well as international players have already penetrated in this market. Competition is at its high pace. Great focus is on the consumer preference over the attributes of retail stores that are considered important. It is assumed that such factors play a significant role in converting footfalls into actual sales. The aim of the study is to identify the factors affecting consumer behavior and preference related to shopping at organized retail stores. In this paper, analysis of the consumer’s preference of the specific attributes of selected 5 major retail brands of Ludhiana is done. Retail stores selected were Big Bazaar, Lifestyle, Westside, Vishal Mega Mart and Globus. Factor analysis has been used in identifying the main factors. The factors include sales assistance, store ambience, store attractiveness, store pricing policy, store promotion and store Convenience.