Chapter 1.

Design of the Study.

Introduction
The word retail is derived from the old French word retaillie, which means to cut off a piece or
to break a bulk. A Retailer or retail store is any business enterprise whose sales volume comes
primarily from retailing. Retailing includes all activities involved in selling goods or services to
the final consumers for personal, non-business use. The origins of retail are as old as trade itself.
Barter is the oldest form of trade. For centuries, most merchandise was sold in market places or
by peddlers. In the medieval markets the peddlers traveled long distances to bring products to
locations which were in short supply. They could be termed as early entrepreneurs who saw the
opportunity in serving the needs of the consumers at a profit. The remains of major Greek cities
are witness to the fact that retailing existed even then-the agora, or the market, which existed
then, served the needs of the local population. In most parts of the world, a flea market-typically
a place where vendors come to sell their goods-could be the earliest form of the retail
congregations. The original flea market is likely to have existed as the Marche aux puces in the
suburbs of Paris in the 17th century. Over the years, these markets have existed across major
cities of the world, selling a diverse array of products.
In 1852, Bon Marche, the first departmental store, was set up in Paris. Bon Marche
revolutionized retail at that time by relying on volume rather than high mark ups, to make
money. The success of Bon Marche led to other departmental stores coming up across Europe
and America, which continued to grow and flourish until world war-II.
The industrial revolution saw the retailers evolving new methods of operations. The importance
of food for the working class consumers and the difficulties faced by them in procuring the food
products led to the emergence of co-operative societies in the United Kingdom. The 1930 saw
the emergence of super markets. The end of world war-II reordered the retail scene. The first
hyper market that was developed was Carrefour in France in 1963. Shopping mall, a late 20th
century development, was created to provide for the consumers need in a single, self contained
shopping area.
The evolution of retail formats worldwide has been largely influenced by a constantly changing
social and economic landscape. Consumer demand is the prime reason for the emergence of
various formats. The theories are developed to explain the process of retail development revolve
6

around the importance of competitive pressures, investment in organizational capabilities and the
creation of a sustainable competitive advantage, which requires the implementation of strategic
planning by retail organizations. (a) Environmental- where a change in retail is attributed to the
change in the environment in which the retailers operate.(b) Cyclical-where changes follows a
pattern and phases can have definite identifiable attributes associated with them and (c)
Conflictual- where the competition of conflict between two opposite types of retailers, leads to a
new format being developed.
With the growth of industrialization and urbanization, the distance between the manufacturer of a
product and the actual consumer has increased. In our world, many products are manufactured in
one country and sold to a market in another.
Most producers no longer sell their products or services directly to the consumers, but instead
use intermediaries to get their product to the final consumers. Some of the most common
marketing channels are
Manufacturer

Manufacturer

Manufacturer

Wholesaler
Retailer
Retailer

Consumer

Consumer

Consumer

Manufacturer or suppliers that offer products for immediate consumption are known as direct
manufacturers or suppliers. More traditional manufacturers or suppliers are associated with
delayed consumption. Companies which deal primarily with immediate consumption are known
as service providers, while those that deal with delayed consumption are retailers.
The importance of retail as an industry can be gauged from the fact that the fortune 500 has
about 34 retail organizations featured on its list. The number one company on its list is also the
largest retailer in the world, Wal-Mart. The major retail giants are Wal-Mart stores, Carrefour,
Home depot and Metro stores. The world of retail is a fast changing one and calls for constant
evolution on the part of the retailer. A retailer not only needs to keep up with ever changing
7

expectations and demands of the consumers but also keep to track of the competition and the
changes in technology and the socio economic climate of the nation in which it is operating in.
Marketing has developed in an evolutionary rather than a revolutionary fashion. As the society
moves from one stage of economic development to another, the concept of marketing has
undergone revolutionary change. The primary objective of business has changed dramatically in
recent year. In the earlier period, the main objective of business was to maximize profit, but now
it is not so. The primary aim of modern business is to satisfy the consumer by meeting their
needs and wants and through it make profit. Thus modern marketing has now become consumer
oriented. Therefore every business firm has to find out first what the consumers want, how much
they want, at what price they want and at what time they want.
Marketing is not a function, it is the whole business seen from the consumers point of view.
Today marketers are dancing to the tune of consumers. That is why it is said that the consumer is
the king/queen in the modern marketing. There are lots of factors responsible for the growth of
modern concept of marketing such as population growth, growing number of households,
increase in the disposable income and changes in the attitudes towards life, technological
development, growth of marketing channels and growth of mass communication media.
REVIEW OF LITERATURE.
An attempt is made to review the available literature on consumer attitudes classifying those
under three heads (1) Consumption pattern (2) Factors influencing consumers (3) Consumer
decision making.
Consumption Pattern.
Philip Kottler (1965)1 opined that all the models so far developed by various scientists should
be used in an integrated manner in order to understand the consumer in general. In his
opinion are being influenced by price, quality, availability, service, style, option and image.
Depending on the product involved, different variables and behavioral mechanisms assume
different degrees of importance in influencing the purchase decision process.
Kaul et al. (1977)2 in their study conducted in Punjab, analyzing the rural and urban food
consumption pattern found that consumption of relatively superior food is positively
correlated with the income level of the individuals.
Mahajan (1980)3 in his study on inter-regional homogeneity of consumer behaviour in India
revealed that Consumer behaviour markedly differ between the rural and urban sectors. If

further revealed that inter regional homogeneity in consumption seems to be realized at best
in the case of North India and Central India.
Raut (1987)4 in his study on consumers attitudes towards advertising pointed out that 89
percent of the respondents believed that advertising is useful to the consumers for giving
convenient information about the products and to increase consumer awareness. It also
provides an opportunity to the consumers to make comparison and make shopping easier to
the consumers.
Mani and Srinivasan (1990)5 in their analysis on buyer behaviour of consumers with respect
to processed fruits and vegetables found that majority of the consumers purchased jam in
large quantity followed by Squash. Many consumers were loyal to a particular brand and
were conscious of quality (taste) than price or shelf life.
Raveendran (1990)6 in his study on marketing of Coconut and its products in Orissa state
found that about 70 per cent of coconut oil arriving in the market in 15 Kg and 5 Kg tins are
traded in rural areas. The main consumers are middle class and lower class population.
Among the upper class both in urban and rural areas the preference for small packs are
increasing.
Ramachandran et al.(1996)7 in their study found that coconut oil is the most preferred oil for
edible and toiletry purposes. Higher income groups make monthly purchases, whereas lower
income groups purchase weekly. Palm oil is the second preference among other edible oils.
Homemade oils are used because of low cost availability of bye-products and purity.
Purchase of other edible oils was due to the fluctuations in price than health factors and they
purchased majority from government retail outlets.
Katy and Dipika (1997)8 in their study attempted to analyze consumers purchase behaviour
over two periods in the cities of Mumbai, Calcutta and Delhi. The study showed that while
segmenting market on the basis of consumption pattern of various product categories
Calcutta seemed to be opting for reduced consumption as a way of economizing rather than
downgrading on product quality.
Bagozzi and Dholakia (1999)9 found that goals played an essential role in purchase
behaviour of consumers and can be traded in the marketing of durables, non-durables, service
and even ideas or persons. They also pointed out that goals provide a conceptual framework
for thinking, influence decision making and guide consumer choice and action.
9

Rodge (2001)

10

finds that the rural consumers give more importance to the advertisement

compared to urban consumers. Both rural and urban groups found that all the advertising
media are equally important and effective.
Sathya Sundaram (2002) 11 has reviewed that a silent revolution is taking place in rural areas
where the majority of the population lives. The consumption patterns and preferences of the
rural consumers are changing. Moreover the farm sector is having tremendous amount of
accumulated disposable income. Of course, the real challenge lies in understanding the actual
needs of rural consumers.
Ruchi Treham and Harmandeep singh (2003)12 pointed out that Indian market is a huge
market with lot of potential in it. Nearly 70 per cent of the population lives in rural areas.
They also pointed out that Indian markets have both urban and rural characters. Both markets
significantly differ from one another while considering general and product specific factors
and making their purchase decisions.
Kuldeep Singh and Varshney (2003)

13

in their study observed that shrinking market share

and reduction in sale do not mean consumers have actually been cutting back on their use of
toilet soaps. They also stated that it is not the lack of awareness but lack of affordability
which restricts consumers from buying toilet soaps.
Raju.K.C (2005)14 studied the budget share among different items of consumption of rural
Kerala over a period from 1972-2000, by estimating monthly per capita expenditure at 93-94
prices. He estimated 10 broad groups of items and their percentage to total expenditure. He
found that in rural Kerala there has been a general increase in the total expenditure on food
and non food items over the period is quite visible.
Vijayakumar (2005)

15

found that the age group of people is an important criterion to

determine the consumption pattern of carbonated soft drinks. It is also pointed out that age,
marital status; occupation and family income were significantly related to the monthly
spending on soft drinks.
Sharif Memon (2006)16 in his study of Changing face of Indian retail industry and its
implication on consumer behavior pointed out that categories where new retail set ups turn
dominant, will inflict a huge force on the brand owners margins. Retail expansion will lead
to confront like copy with newer values and price equations, providing equality, affordability
and worth. Producers will also have to face rivalry from retailers private brands.
10

Dr Urvashi Makkar (2007) 17 in her article opined that the increasing size of the middle class
population in India, representing a growth in disposable incomes, has led to more consumers
for the market. Although Indians are strongly attached and committed to their tradition and
culture, the advent of television and the awareness of the western world are changing the
tastes and customs of India.
R. Ranjith Kumar (2008)

18

opined that for a consumer in non durable product, the main

factor is the quality. Advertisements create more brand awareness and its influences the
consumers. The marketers should be highly competitive without sacrificing the quality of the
product
Rajesh Shinde (2009),19 points out that rural India has more 70 % population in 6.27 lakhs
villages, which is a huge market for fast moving consumer goods product (FMCG). All the
income groups purchase the FMCG product but their brands differ from each other .The
place of purchase which the rural consumers prefer is the weekly market, moreover the youth
who visits the taluk place or district place are influenced by the city culture and it is reflected
in their purchasing decision.
Dean Martin.C and Dr. Baby Joseph (2010)20 concluded his article that a good percentage of
consumers are using talcum powder, it is inferred that a good percentage of consumers are
interested in trying new brands of talcum powder. The major ingredients are more or less the
same; however the fragrance, brand name and quality of products play an important role in
determining the product success or failure.
Factors Influencing Consumer Choice.
According to Singh and Singhal (1986)21 a well designed packaging acts as the main
identifying feature for quality and quantity and make the consumers more informative and
choosy. It further informs the consumers as to what quality, quantity and price, the package is
worth off.
Venkatesharlu et al.(1987) 22 in their study on factors influencing consumer decision making
process towards biscuits found that sample consumers mostly purchased biscuits at least once
in a week. Consumers preferred packed biscuits to loose ones and small packets to big ones.
Parents and children were more or less equally involved in decision making. Consumers
perceived quality and taste were important influencing variables that determined brand
loyalty.

11

Kramar (1988)

23

stated that the recent trends appeared motivated by nutritional food safety

perceptions and health concerns were not the only factors. He also observed that taste, price,
convenience, variety and quality were also important. He found that the consumers were
increasingly demanding safe and nutritious food appropriately processed, labeled and
certified.
Metwally (1994)24 in his research paper attempted to determine the main factors affecting the
decision of import agents in the middle east to import consumer goods from a specific
country using discriminator analysis. It was found that quality, price and credit facilities were
the most important discriminators between the two groups of agents.
Mohammed Abdul Naseem (1996)25 in his study referred that brand name, picture, quality,
price, availability, service, design and number of channels were the factors that influenced
purchase. Majority of respondents were aware of the existence of multinational companies
also.
Rao (1997)26 who studied the purchase timing of consumer durables observed that influence
of advertisement, absence of servant maid help, life styles changes etc are the factors that are
mostly agreed but the consumers as the factors that influenced the purchase of durables. He
also identified income as an important factor influencing the purchase. Consumers in all
income groups felt that company reputation and product or brand image played an important
role in their purchase decisions. The study also revealed that higher income group is
influenced more by word of mouth while lower and middle income groups are influenced by
dealer recommendations.
Kempt and smith (1998)27 observed that consumers first usage experience with a brand is a
critical factor in determining brand beliefs, attitudes and purchase intention.
Subbalekshmi (1999)

28

observed that rural consumers in general were influenced by the

packing of the product where as urban consumers by the promotion and product features like
taste of the product and they are majority purchased from private supermarkets.
Gupta and Verma (2000)

29

examined the influence of husband, wife and children and the

interaction between them in the purchase decision process. The study also focused on the
influence of socio economic variables like age, education, income, and employment in the
decision dimension and found that income of the family and women employment is the major
factor influencing family decision making.
12

Rodge (2001)

30

finds that are the rural consumers attach more importance to the

advertisement and its impact as compared to urban consumers. He also points out that rural
consumers are more influenced by electronic media than print media.
Kumar (2003)

31

revealed that the majority of consumers are highly enlightened and are

concerned of quality of the products. He also revealed that the consumers uniformly, both in
urban and rural areas, desire to have quality of the products at reasonable price and trust
more the advice of the retailers.
Indumathi, V (2007)32 revealed that generally consumers purchased spice products once in a
month. Occupational status of the women in households, income of the households and time
saving while cooking was the major factors that influenced purchase of processed spice
products. The one-third of the consumers was skeptical that continuous consumption of
processed spices which have preservatives may cause harmful effects in the long run. The
strategy formulation on these products must take in to consideration these aspects.
Dr R Kantha Krishnan (2008)33 opined that direct selling companies must take steps to
promote their products to reach all classes of people. Consumer satisfaction is guaranteed to
these companies only when the company takes no consideration the price of the products as
well as sales promotion methods even if it offers worldclass quality products at consumer
convenience.
P. Thirumoorthi, P. Karthikeyan (2009)34 The different factors that influence the consumers
were found to be brand name, availability, advertisement, different varieties, price, quality
and type of package. It is found that, the company has to adapt new strategies in order to sell
the product more effectively.
Dean Martin.C & Dr. Baby Joseph (2010)35 revealed that major factors contributing to the
purchase through e-commerce by the consumers of central Kerala is that of time, followed by
convenience in shopping, wide variety/Choice, good discounts, detailed information
availability and comparison availability.
Consumer Decision making.
Gupta and Singh (1989)

36

in their study on consumer brand choice behaviour observed that

majority of consumers. Durability, brand image and price were the reasons for preference
followed by family liking and after sales service.
Skinner (1990)37 opined that when a consumer purchases an unfamiliar expensive product he
uses a large number of criteria to evaluate alternative brands and spends a great deal of time
13

seeking information and deciding on the purchase. The type of decision making used varied
from person to person and from product to product.
William and Narasimham (1994)38 developed a theory of the evolution of choice decision for
consumer products which addressed information acquisition behaviour and the duration of
the purchase deliberation process itself.
Kulkarni and Murali (1996)

39

in their study on purchasing practices of consumers of

Parbhani town observed that majority of the households purchases were done by husband
alone followed by husband and wife jointly. Most of the consumers preferred quality of the
goods, while purchasing adopted cash payment method and brought the goods from retail
shops.
Yadav (1998)40opined that the decision for buying vegetables for family consumption is
dominated by wife, influenced by the likes and dislikes of the family and by the influence of
electronic media on the children.
Venkateswaralu and Rao (2000)

41

in their study opined that the role of women in decision

making for consumer products is high and both husband and wife decide together.
Gaur and Vaheed (2002)42 observed that consumers buying behaviour normally should
include the less observable decision process that accompany consumption including where,
how often and under what conditions make their purchase of desired goods and services.
Vikas Sarab (2003) 43in his study opined that brands are successful because the people prefer
them to ordinary products. In addition to the psychological factors, brands give consumers
the means whereby they can make choice and judgments. Consumers can then rely on chosen
brands to guarantee standard quality and services.
Asif Zameer (2006)

44

revealed that one of the critical factors that will give an edge to one

retail centre over the others is the way it is managed. Over the next few years, professional
mall management service will establish its significance in the industry. The country requires
higher attention to be given to develop more number of persons with the right skills and
knowledge who can be employed in this function.
Irene kamenidov, John Mylonakis and Balkoulis Nicholas (2008)45 points out that the
management should adapt enhanced marketing efforts, in order to make certain that the
business consumer needs are met. Therefore manager can identify, prioritize and improve the
areas of service flaws and distribute important resources to the most effective areas.

14

Dean Martin.C, & Baby Joseph (2010)

46

finds that the majority of retailers car parking

design and management are not excellent. From the study it is better to keep the
payment/repayment system with the security officer in charge rather shifting to the busy
office cum cash collection centers. It is also noted that majority are satisfied with the
safety/security of cars even though there are rare incidents of thefts and damages.
Dean Martin.C, & Baby Joseph (2010)47 reveals that the various attributes/factors that
influence the consumers in the purchase of toothpastes-whiteness, good foam, long lasting
freshness, healthy tooth and gums, prevention of tooth decay, taste, shining teeth, colour,
price, packaging, brand endorsement, advertising and sales promotions.
Dean Martin.C & Baby Joseph (2010)48 reveal that the failures in the retail experience will
cause consumer switching, and thus affect negatively for the retailer. Further, the study
emphasizes that taking the necessary actions to recover the loss is the recommended action if
the retail consumer comes with a complaint.
Dean Martin.C & Baby Joseph (2010)49 reveals that the majority of consumers and retailers
expressed that price i.e., Lower price is the most important factor followed by variety and
availability with respect to consumers and availability and advertisement according to
retailers.
Dean Martin.C & Baby Joseph (2010)50 reveals that the major factor contributing to the ecommerce by the consumers of central Kerala reveals that the first factor is that of time,
followed by convenience of e-commerce shopping, wide variety/choice, good discounts,
detailed information availability and comparison availability. The major concern is that they
are unsure about the product quality that they face delay after ordering the product followed
by unsure about the security of transaction, not being able to bargain/Negotiate, touched/felt
and there is an argument that the discounts are not significant and there is good delay or
waiting time for receiving the product.
Dean Martin.C & Baby Joseph (2010)51 reveals that the most important factor contributing to
the purchase from the chain stores is lesser price, the second factor is good quality followed
by wide variety or range. The most important factor contributing to the purchase from the
franchisee stores is Good quality offered by the franchise shops followed by lesser price. The
consumers points out that the single unit stores are storing products in convenient location
suitable for consumers followed by customized knowledge of requirement for the consumers.
In the case of single unit outlets, they are highly satisfied with consumer relationship,
15

satisfied with quantity and trust, moderately satisfied with discounts, quality, and
goodwill/fame and dissatisfied with offers and schemes. The consumers of chain stores are
only satisfied with the following variables-Quantity, Consumer relationship and trust and all
other variables are highly satisfied. The consumers of franchisee outlets are satisfied with all
the variables with no highly satisfaction/moderately satisfaction.
Dean Martin.C and Dr. Baby Joseph (2011)52 finds that the consumers of chain stores are
only satisfied with the following variables-Quantity, consumer relationships and trust and all
other variables are highly satisfied. In the single unit outlets there are highly satisfied with
consumer relationship, satisfied with quantity and trust, moderately satisfied with discounts,
quality and goodwill/fame and dissatisfied with offers and schemes.
Dean Martin.C & Baby Joseph (2010)53 reveals that language and regional behavioral
variation should be given due attention while developing the rural communication strategy.
Feel the local touch and sell the goods much should be the aim of producers and marketing
agencies. If the increased participation of rural consumers and purchase is the objective of
the rural marketing, emergency of a radical shift is the need of the hour in management
thinking. Then only the producers are able to taste the success and rural distribution of the
products and their sales would not be considered as a nightmare, which automatically passes
the way for the next big market revolution in rural areas.

Statement of the problem.

India and especially Kerala is facing huge inflation and at the same time majority of keralities are
not rich enough to meet this difficult situation. The retailing in Kerala is concerned, the
government and co-operative sector is very strong enough with the private sector to meet the
requirements of consumers. The public distribution system headed with Kerala state civil
supplies corporation (Supplyco) and Co-operative sector with all consumer co-operative stores,
Neethi stores (Associated with primary agricultural credit societies-PACS) and The Kerala State
Co-operatives Consumers Federation Ltd has gained enormous consumer support in recent
years. The private retail outlets with various retail format especially supermarkets also catering
the requirements of crores of consumers in Kerala. So major retail outlets in Kerala are

Government retail outlets (Supplyco & PDS)- The supplyco has 1266 retail outlets-969
Maveli stores, 9 Mobile maveli stores, 3 Mini mobile stores, 8 Super markets, 267
Labham markets, 3 Hyper markets and 7 peoples bazaars.
16


Co-operative retail outlets (Consumer co-operative stores, Neethi stores and

Consumerfed outlets)- The Consumerfed has 87 own retail outlets-85 Mega triveni/Little
triveni Supermarkets,1 Mobile triveni, 1Floating triveni, 22 triveni godowns, 14 Neethi
ware houses, 1 Triveni notebook unit, 1 Computer stationary unit and 1 Hurry curry
powdering unit. The Neethi scheme started with the assistance of government of Kerala
in 1997 has been successfully implemented through 1000 selected primary agricultural
credit societies in all the districts of Kerala for the distribution of consumer goods at the
lowest prices in rural areas. So the co-operatives have 1087 retail outlets.

Private retail outlets-private sector has more number of retail outlets than government and
co-operative outlets in the form of Margin free supermarkets, Varkeys supermarkets, Big
Bazzars, Reliance super stores and other small/Big and Organized/Unorganized private
retail outlets scattered all over Kerala.
Consumers are very keen in selecting the grocery products and retail outlets. Consumers are
seeking fair goods/services for their hard earned money and scarce time. They want products or
service that meet their specific needs or wants and that are offered at competitive prices with
higher values. The study focus on the benefits/facilities/offers/services provided to the
consumers in Kerala by major three types of retail formats.
The purpose of government sector is not profit and maximization of profit but better service to
the citizens of Kerala, control inflations; ensure the availability of good quality products
throughout Kerala. In the case of co-operatives, the objective is to satisfy the requirements of
consumers especially members of co-operative society, again the objective is not the
maximization of profit but better service to the consumers especially members. The private retail
outlets are concerned, their modern objective is to provide and ensure consumer satisfaction and
through providing and ensuring satisfaction, and earn profit. These three different organized
retail formats are trying to cater the same group-people of Kerala residing over fourteen districts.
How far these three retail formats can able to satisfy the consumers. Here the study is to assess
the satisfaction level of consumers of Kerala over these three formats and also how far the
various retail outlets can provide over the key variables that may constitute the consumer
attitude.

17

Objectives of the study.

1. To evaluate the consumer attitudes towards the government, co-operative and private retail
outlets.
2. To assess the performance of government, co-operative and private retail outlets on the key
variables that constitute consumer satisfaction.
3. To evaluate the regional and urban/rural differences among consumers of Kerala over
government, co-operative and private retail outlets.
4. To identify the major problems and challenges experienced by government, co-operative and
private retail outlets and give suggestions for improving the performance of retail outlets in
Kerala.
Major Hypothesis.
1. There is significant difference among the consumers attitudes towards government, cooperative and private retail outlets.
2. There is no significant difference among the consumers attitudes towards government,
co-operative and private retail outlets in the three zones of Kerala.
3. There is significant difference in the consumers attitudes towards government,
co-operative and private retail outlets among the Urban and Rural Consumers.

Items to be observed.
Variables observed for the Objective number One- Age of respondents, Sex of respondents,
Education of respondents, Occupation of respondents, Annual income of respondents, Religion,
Residence, Retail general formats, Retail variables-Quality, Reliability etc., Retail sector wise
analysis-Bakery, Cereals etc, Marketing presence, Who Purchases among the members of the
family, Time of purchase, Consumers Preference Regarding Place of Purchase, Which Store/
Type of Store, Duration, Distance, Door delivery and other Main problems and challenges.
Variables observed for the Objective number two-Period of operation, Type of organization,
Type of ownership, Type of outlets, Branches and its size, Place of Operation, Different product
sectors, Annual turnover, Number of employees, Floor area, Quality, Majority brand, Level of
Stock, Service system, Shop location, Awards, Experience in the current format, Regularity of
consumers, Discounts offered, Gifts /schemes, Credit facility and its percentage, Advertisement/
Business promotion, Parking facility, Childrens play area, Computerized billing, Display
models/Structures, Training/refreshment courses provided, Restrooms for employees, Attractive
carry bags, Music in the store, Refreshment to consumers, Air Conditioning, Shopping hours,
18

Lift system, Rate tags and price stickers, Availability of latest trends, Number of billing points,
Safety measures against fire, against natural calamity, against theft, Prompt service, Individual
attention, Problem solving, Marketing presence, Majority purchases, sales promotions-daily
gifts/Lucky draws, Credit point discounts-ceiling basis, Prizes-cars/washing machines/gold
coins, Notices and advertisement materials, daily offers, Card discount scheme, scratch and win
etc.
Variables observed for the Objective three and four.
Derived from the key variables observed on objectives number one and two.

Methodology
The methodology to be adopted for a particular research project would depend upon the purpose
and objectives to be achieved. The sampling is based on multistage sampling. On the first stage
we divide the entire state into three zones namely south central and north zone and two districts
from each zone is selected. From the each district a sample of 100 consumers and 18 super
markets/retail outlets (6 from each category-Government/Co-operative/Private retail outlets) is
selected. Both Secondary and Primary sources of data are used for the study. So a total of 600
respondents and 108 retail outlets are selected for the study.

Data Source and Collection & Period of the Study

Based on the objective and the hypothesis to be tested, the required data has been gathers from
both primary source and secondary sources. The collection of all relevant data and other basic
information relating to the operations of the super market/retail outlets have been collected from
the super market/retail outlets run by Government sector (Like Supplyco, Labham markets etc.),
Co-operative sector (Triveni, Consumerfed and Primary Agricultural credit Societies-Neethi
consumer stores) and from the private consumer retail outlets. Personal interviews, observations
and discussion with the consumers of the retail outlet form part of the data and information
gathering. The period of the study is from July 2008 to July 2011.

Techniques for Data Analysis.

On the basis of data collected the performance of the retail outlets is to be analysed by using
statistical techniques. The objectively collected data has been suitably classified and arranged in
tables in appropriate chapters. The Ratios and Percentages and Means are calculated where ever
it is appropriate. To check the validity of the results that we obtained in the section we use the
Chi-square- test given below whenever it necessary.
19

To test the hypothesis that two attributes are associated or not we used the Chi-square test for
(O E ) 2
independence is defined as
where O refers to the observed frequencies and E for the
E
expected frequencies (the ratio of the product of the row total and column total to the grand
total). The test is significant whenever the calculated value is greater than the tabled value. Or
the p (Asymp. Sig.) value is less than 0.05. The Kruskal-Wallis Test is also used where ever it is
appropriate. To calculate the value, apply the following formula:

Where, H = Kruskal-Wallis Test, n = total number of observations in all samples, Ri = Rank of

the sample. Kruskal-Wallis Test statistic is approximately a chi-square distribution, with k-1
degree of freedom where ni should be greater than 5. If the calculated value of Kruskal-Wallis
Test is less than the chi-square table value, then the null hypothesis will be accepted. If the
calculated value of Kruskal-Wallis Test H is greater than the chi-square table value, then we will
reject the null hypothesis and say that the sample comes from a different population.
In the case of the ranking questions we adopted the weighted average techniques with values
starting from the highest possible rank to the lowest and weight as the number of respondents.
The weighted mean is calculated for each category and ranked according to the value. Out of the
600 respondents, scores of 3, 2 and 1 is given to respondents providing first, second and third
ranks. The rank offered by the respondents is multiplied with the scores and a total figure is
arrived and the same is divided with the number of respondents (May not be always 600 but the
total actual respondents who gave any rank at all- zero rank is avoided). The arithmetic means of
government, co-operative and private outlets are calculated and first rank is provided to the
maximum mean score followed by second rank and third rank for the lowest mean score. Mean
percentage score is also used to assess the importance of each retail variables among the
consumers.

Scope/Significance of the Study.

The Government/Co-operative /Private sector is trying to satisfy the same group of consumers of
Kerala and at the same time these three formats have their own strengths, weaknesses,

20

opportunities and threats. With this study each retail formats- Government/Co-operative /Private
sector helps to understand the expectations of consumers and behave/act accordingly. Since
modern marketing is consumer oriented and consumer satisfaction is the main goal, this study
ensures immense knowledge about the attitudes of consumers and performance of
Government/Co-operative /Private sector formats to the consumers of Kerala. The major
problems and challenges faced by the above stated three formats based on consumer attitude
spectrum and possible alternatives are come under the scope of this study. Since the government
and co-operative sector is not in the race of profit maximization and exploitation of consumers,
profit analysis is completely avoided in the study.

Limitation of the study.

The study is based on the consumers and retail outlets selected from the six districts of Kerala so
that opinion drawn may not represent the entire Kerala.

Scheme of the study.

The scheme of the study consists of six chapters. Chapter one deals with the statement of the
problem, objectives, hypothesis, and review of literature, methodology, scope and limitation of
the study. An overview of retailing is given in the second chapter. The analysis of consumer
attitudes towards government, co-operative and private retail outlets is given in the third chapter
and the performance of government, co-operative and private retail outlets on the key variables
that constitute consumer attitudes in the retailing in the fourth chapter. The zonal analysis is
given in the fifth chapter and urban/rural analysis is in the sixth chapter. The last chapter
(Seventh) presents the summary, findings and conclusions of the study.

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