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INTRODUCTION Conceptual Framework

Retail has played a major role world over in increasing productivity across wide range of consumer goods and services. Retail is one of the largest industries in the world. It is second largest industry in the United States both in number of establishments and number of employees. The popular traditional form of retail has been so called unorganized form of retailing mostly represented by small family owned stores, selling one particular category of product, e.g. kirana stores. Retail in India used to fall largely into unorganized category. However, recently there has been organized sector started contributing significantly within retail. There are various factors which affect the buying behavior of customers in organized retail. Through this study these factors will be analyzed in respect of organized apparel retail industry.

Retail: Retail consists of the sale of goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be individuals or businesses. In commerce, a "retailer" buys goods or products in large quantities from manufacturers or importers, either directly or through a wholesaler, and then sells smaller quantities to the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the supply chain.

The retail industry is divided into organized and unorganized sectors. Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporatebacked hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local Karana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. In India, a shopkeeper of such kind of shops is usually known as a dukandar.

Organized Apparel Segment: It can be defined as makers and/or sellers of fashionable clothing. Some of the players of this segment are- Max, Pantaloon, Vishal, Wrangler, Levis etc.

Consumer and Customer: An individual who buys products or services for personal use and not for manufacture or resale. A consumer is someone who can make the decision whether or not to purchase an item at the store, and someone who can be influenced by marketing and advertisements. Any time someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are making that decision as a consumer. In other words, consumer is End user, and not necessarily a purchaser, in the distribution chain of a good or service.

A customer (also known as a client, buyer, or purchaser) is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. In other words, customer is an entity that receives or consumes products and has the ability to choose between different products. The present study will use the word customer for the respondents.

Consumer Buying Behavior: Consumer behavior refers to the mental and emotional process and the observable behavior of consumers during searching, purchasing and post consumption of a product or service. Consumer behavior involves study of how people buy, what they buy, when they buy and why they buy. It blends the elements from psychology, sociology, socio-psychology, anthropology and economics. It also tries to assess the influence on the consumer from groups such as family, friends, reference groups and society in general.

Buyer behavior has two aspects: the final purchase activity visible to any observer and the detailed or short decision process that may involve the interplay of a number of complex behaviors not visible to anyone.

In other words Consumer behavior is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer.

Consumer Buying Decision Process: There are 5 stages in consumer buying decision, they are:

Stage 1: Need Recognition The buying process starts with need recognition the buyer recognizes a problem or need. The buyer senses a difference between his or her actual state and some desired state. Stage 2: Information Search The stage of the buyer decision process in which the consumer is aroused to search for more information; the consumer may simply have heightened attention or may go into active information search. Stage 3: Alternative Evaluation The stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set. Stage 4: Purchase Decision The stage of the buyer decision process in which the consumer actually buys the product. Stage5: Post purchase Behavior The stage of the buyer decision process in which consumers take further action after purchase based on their satisfaction or dissatisfaction.

Factors that Influence Consumer Buying Behavior Process:

Review of Literature
There are few study has been done in organized retail sector to understand consumer behavior. These are given below-

Jaakkola (2007) has written this article on analyses purchase decision making for product and services that are acquired and used by consumers, but chosen by professional service providers. This is done by comparing the distinct characteristics of purchase decision making in the contexts of professional consumers services and organizational and consumer buying. Three aspects are elaborated on :the actor involved the purchase decision task , and the nature of the decision making process It is concluded that professional consumer service represents a unique setting for purchase decision making and cannot be considered equivalent to the organizational or consumer setting. The article proposes theoretical framework incorporating the typical characteristics of professional services as a decision making context, specified in a set of prepositions regarding the relative influence of parties on purchase decision. Practical and research implication are also presented.

Arbuthnot, Sisler and Slam (1993) all have done major research, to examine perceived satisfaction with store performance in relation to selected information sources and selection criteria used in buying. Data were collected from a sample of 313 small speciality store owners/buyers who participated in the nationwide survey representing 37 states. Responses of owners/buyers that indicated a high level of satisfaction with store performance were compared with responses of owners/buyers.

Guneri, Yurt, Kaplan and Delen (2009) have done a research study which focuses on the influence of children on family purchasing decision making in Turkey, a country with distinct cultural characteristics. The study provides empirical evidence based on data, collected from 849 families. The general finding of this study suggests that the childrens influence family decision making in Turkey is limited to products of direct use to children. Findings also reveals that the children are more influential on need recognition, where to buy, when to buy and what to buy. On the other hand, the parents perceive children to have very little influence on family

decision making. This study suggests that parents underestimate the role of their children on family buying decisions.

Rationale of Study
Before business can develop marketing strategies, they must understand what factors influence buyers behavior and how they make purchase decisions to satisfy their needs and wants. Buyers are moved by a complex set of deep and subtle emotions. Their behavior results from deeply held values and attitudes; and their perception. This study aims to understand those factors.

Objective of Study

The objective of the study is as follows: To study the factors affecting buying behavior of customers in organized apparel retail segment.

The Study: The study is exploratory in nature and undertaken to explore factors that affect buying behavior of customers of Indore city in organized apparel retail segment.

The Sample: The sample of the study constituted of 150 respondents having exposure of organized apparel retail segment of Indore city. Non probability convenient sampling technique was used to select the sample of the survey.

The Tools: For Data Collection: The study is mainly based on primary data. The primary data were collected from self-structured questionnaire based on five point Likert Scale (Five for Strongly Agree to One for Strongly Disagree). Some secondary data required for the study is collected from journals, books, internet, companies website, etc.

For Data Analysis: 1. Item-Total Correlation 2. Principal Component Method of Factor Analysis using Varimax Rotation.

The analysis of collected data was carried out using Stastical Package for Social Science (SPSS). In this first we applied item total correlation, which was calculated on the data having 31 items to find out the statement, which significantly contribute towards measuring perception level. Taking level of significantly at 0.5% equal to 0.1952, we then eliminate the insignificant item (that means item having less value than 0.1952). In the first iteration 1 item was dropped. The dropped item was Size of store. This parameter is very important and customers always keep it in mind while purchasing apparel in organized retail segment. In second iteration, no variable was dropped. After two iterations, 30 items were left and from these 30 items 9 factors are derived.

The factors derived from above analysis are shown as follows:

Factor 1: Store Environment In the first factor there are five items. These items are Store interior, Color of store, Maximum
variants are available, Sufficient stocks are available, Appearance of sales person .In these items, Store interior has the highest load i.e. 0.795. The total load of this factor is 3.056 with 21.56% of variance. These all parameters converge to a factor named store environment.

Factor 2: Shopping Convenience In the second factor there are five items. These items are Store location is easily reachable,
Sufficient parking space available for stores customers, Shopping in the store is fun/exiting, Presence of quality background music in store, Shopping in the store is wise .In these items, Store location has the highest load i.e. 0.820. The total load of this factor is 3.16 parameters converge to a factor named shopping convenience. with 10.599% of variance. These all

Factor3: Store Attraction In the third factor there are four items. These items are Promotional offers/schemes are available,
Prices offered by store matters a lot, Appropriate temperature is maintained in store, Proper lighting is available in store. In these items, Promotional offers /schemes has the highest load i.e.0.868 . The total load of this factor is 2.973 with 8.97% of variance. These all parameters converge to a factor named store attraction. 10

Factor 4: Purchase Transparency In the fourth factor there are three items. These items are Paper works / formalities regarding
purchase are transparent, Tie-ups of store with financial institutions matters a lot, Hospitality offered by store attracts you. In these items, Transparency of Paper works/ formalities has highest load i.e. 0.759. The total load of this factor is 2.295 with 7.62% of variance. These all parameters converge to a factor named purchase transparency.

Factor 5: Store Image In the fifth factor there are four items. These items are Discounts provided in stores are worthwhile,
Image of store in the market, Communication skill of sales person is good, Opening/closing timings are satisfactory. In these items, Discount provided has the highest load i.e. 0.758. The total load of this factor is 2.507 with 5.88% of variance. These all parameters converge to a factor named store image.

Factor6: Store Practices In the sixth factor there are three items. These items are Delivery system of store is good, Billing
system in store is satisfactory, Publicity practices of store affects you. In these items, Delivery system has the highest load i.e. 0.789. The total load of this factor is parameters converge to a factor named store practices. 1.994 with 5.31% of variance. These all

Factor7: Customer Relationship In the seventh factor there are three items. These items are Knowledge of sales person about product
is appropriate, Behavior of sales person is satisfactory, After sales services are good.In these items, Knowledge of sales person has the highest load i.e. 0.748. The total load of this factor is 1.986 with 4.98% of variance. These all parameters converge to a factor named customer relationship.

Factor8: Brands variety In the eighth factor there is one item. That item is Maximum brands available in store. The total load
of this factor is 0.831 with 4.34% of variance.

Factor9: Sufficient staff In the ninth factor there are two items. These items are Number of sales person in store is enough,
Availability of sales person during visit. In these items, Number of sales person has the highest load i.e. 11

0.812. The total load of this factor is 1.44 with 3.45% of variance. These all parameters converge to a factor named customer attention.


ITEMS Interior Colour Varients available Sufficient stock Appearance of sales person Store location Sufficient parking space Fun/exiting Backgroung music Wise decision Promotional offers Price Appropriate temperature Proper lighting Transparent paper work formalities Tie-ups Hospitality offered Discounts Image Communication skills Timing Devilery system Billing system Publicity practices Knowledge of sales person Behavior of sales person After sale service Brands available Number of sales person Availability of sales person TOTAL

LOADS .795 .733 .601 .553 .430 .820 .797 .534 .516 .493 .868 .762 .730 .613 .795 .764 .700 .758 .738 .553 .458 .789 .654 .551 .748 .666 .572 .831 .812 .632



Store environment



Shoping convenience



Store attraction



Purchase transparency Store image





Store practices Customer relationship Brand variety Sufficient Staff



1.986 .831 1.444

4.982 4.340 3.452 72.735


The report of the present study has been divided into six chapters.

Chapter 1- Introduced the conceptual framework with review of literature, rationale of the study and objective of the study.

Chapter 2 - Described the methodology of the study in terms of nature of the study and tools for both data collection and analysis.

Chapter 3 - Presented results.

Chapter 4 - Deals with the discussion part. Chapter 5 For summary, conclusion and suggestion.

Chapter 6 - Presented implications of the study to highlight the application value of the study.

References have been given in standard format to facilitate the future researchers for tracing the source of literature.


The research is being conducted to study factors affecting buying behavior of customers in organized retail apparel segment. The factors derived are- store environment, shopping convenience, store attraction, purchase transparency, store image, store practices, customer relationship, brands variety, and sufficient staff.

Five factors viz.; store environment, shopping convenience, store attraction, store image and customer relationship are denoting customers orientation and relation. Remaining four factors viz.; purchase transparency, store practices, brands variety, and sufficient staff are denoting store policy and practices. Marketer should consider all these factors while formulating marketing strategies of a particular apparel retail store.


This research can be used while developing the marketing strategies of a product i.e. while developing marketing mix strategies of product one should kept in mind which factors can affect buying behavior of customer.

The research is conducted in a specific region so there is a scope to extend the research at national level. It will help to identify the significance at national level.

This research can be further extended by including some other demographic items like age, gender and profession of respondents. Although age, gender and profession were included in the questionnaire but they did not have any impact on the result.



For Marketers
In this research there are nine factors founded. These factors can be of prime importance for various marketers. They can use this study to understand the consumer behavior while selecting apparel.

For example: availability of variety of brands in a store highly influence buying decision of customer, so marketer may design their strategies which can meet the above objective.

The study will help companies to know about consumers need and fulfilling them with full commitment.

For Students
This study would help students of Marketing Management in studying the factors that can influence buying behavior of apparel customers. The study would act as a guide for them in further study. Particularly for students who wish to build their career in this field this study would be of interest to them.

For Customers
The study was aimed at finding out important factors that can affect buying decision. Although normal users are aware about various factors can help them to make appropriate choice. It can help to all those customers who are going for first purchase. This study can be source of information to them.


Cross, Robert G. (1997). Revenue management: hard-core tactics for market domination. Broadway Books. pp. 6671. ISBN 0-553-06734-6. Jaakkola , Elina (2007). Purchase decision within professional consumer services organizational or consumers buying decision behavior? Marketing Theory Vol. 7, No.1 Arbuthnot , Jeanette; Sisler , Grovalynn ;Mark Slam (1993).Perceived store performance and retail purchase decision of buyers for small specialty stores , clothing and textiles research journal, Vol. 11. No.2.21-27. DOI:1177/0887302X9301100204. Guneri, Yurt; M.D Kalpana and M. Delen (2009).The influence of children on family purchasing decision in Turkey in Asian Journal of Marketing Vol 3, issues 1, Page no. 20-32, DOI:10.3923/ajm.2009.20.32. Malhotra, N. K. (2005), Marketing Research: An Applied Orientation, 4th Edition Pearson Education, Indian Branch, New Delhi. Riqulme, H. (2001), Do Consumers Know What They Want?, Journal of Consumer Marketing, VoL. 18, No. 5, pp. 437-448.