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Article
Publication date: 16 February 2023

Sarat Kumar Jena

The purpose of this study is to provide a unique competitive advantage to businesses in providing a wide range of products to prospective customers. To the best of the author’s…

Abstract

Purpose

The purpose of this study is to provide a unique competitive advantage to businesses in providing a wide range of products to prospective customers. To the best of the author’s knowledge, there is no study to discuss the impact of customer-centric retailing on total supply chain profit under price competition between organized and unorganized retailers.

Design/methodology/approach

This paper considers a supply chain comprising of organized and unorganized retailers and a single manufacturer. This paper proposes three mathematical models considering a customer-centric approach in a competitive environment. Stackelberg game is used to examine how members of the chain interact, and Nash equilibrium was used to find optimal strategies for players under different customer-centric approaches.

Findings

The results show that the total supply chain profit is higher when both organized and unorganized retailers use a customer-centric approach independently instead of collaborating process. The result, in addition, establishes that when the dissatisfying cost exceeds a certain threshold (1.5), the total profit is higher for the organized customer-centric effort model compared to the other two models.

Originality/value

The main contribution of the study is to examine the effect of customer-centric retailing, considering dissatisfying costs on supply chains profit and individual decision-making under price competition between organized retailers and unorganized retailers. The authors developed different mathematical models in the different customer-centric approach.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 11
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 5 August 2014

Rituparna Basu, Kalyan K. Guin and Kalyan Sengupta

The purpose of this paper is to explore store choice behaviour of Indian apparel shoppers and analyses the factors influencing their choice of retail formats from an emerging…

1221

Abstract

Purpose

The purpose of this paper is to explore store choice behaviour of Indian apparel shoppers and analyses the factors influencing their choice of retail formats from an emerging market perspective.

Design/methodology/approach

The research draws on a data set of 336 structured questionnaires with adult urban Indian respondents to understand their perceptions about organised and unorganised apparel store formats. The exploratory study uses a comprehensive list of demographics, shopping situations and format stimuli parameters along with two established psychographic scales to assess the extent of their effect on the store choice of apparel shoppers.

Findings

Factor analysis revealed five well defined store attributes influencing the apparel shoppers’ decision. The growing market for organised retail with a preference for multi brand stores is highlighted. The study establishes that the shoppers’ perception of single-brand stores is still going through a formative phase. Further at the micro level of the decision process, significant differences are established by a number of variables.

Research limitations/implications

The paper explores the store choice behaviour from a wider perspective that may be useful for future research on developing integrated store format choice models. However, the data used herein relates to a cross-section of shoppers in urban India due to the feasibility and convenience of studying relatively organised retail forms and structure of retail in an emerging market environment.

Originality/value

The paper attempts to enumerate befitting analyses of factors that influence the store choice behaviour of apparel shoppers by using apt format classifications that are specific to the emerging retail market scenario in India.

Details

International Journal of Retail & Distribution Management, vol. 42 no. 8
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 26 April 2022

Sayee Manohar Krishnamurthy and Krishna Venkitachalam

The purpose of this research is to portray the historical evolution of retailing from 1980 to 2020. The study considers India as the domain as it is one of the fastest growing…

Abstract

Purpose

The purpose of this research is to portray the historical evolution of retailing from 1980 to 2020. The study considers India as the domain as it is one of the fastest growing markets, and the retail growth is anticipated to reach more than one trillion dollars within this decade.

Design/methodology/approach

This paper captures the historical growth trajectory of retailing from the pre-online era to the online era and highlights how the retail environment has become modernized and sophisticated in the process in India.

Findings

The study traces the journey of retail from 1980 to the multi-billion-dollar sector it had become by 2020 in India. Furthermore, the article provides an overview of how the different retail forms and players in the Indian retail sector have been shaping the industry over the last four decades. During this period, there has been a transformational change in the format of Indian retailing. The Indian consumers' shopping mindset moved from physical in the 1980s to online, and now “Phygital” (Physical and Digital) in 2020s has become an omni-channel platform in Indian retail.

Originality/value

This paper aims to present a viewpoint of the evolutions of retailing from the unorganized to the organized form and from the physical to the online form over the last 40 years in the Indian retail sector landscape.

Details

Journal of Strategy and Management, vol. 16 no. 1
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 15 April 2022

Anil Kumar and Rohit Kumar Singh

The aim of this study is to examine the impact of supply chain management (SCM) practices and retail outlet attributes on the performance of organised food retailers in India…

Abstract

Purpose

The aim of this study is to examine the impact of supply chain management (SCM) practices and retail outlet attributes on the performance of organised food retailers in India during COVID-19 pandemic.

Design/methodology/approach

Authors conducted empirical research with SCM practices and retail outlet attributes to evaluate the retailers’ performance. The authors present the results from 321 valid responses from the Indian food retailers. The study used structured equation modeling to present the analysis and the results.

Findings

The findings of this study reveal that most of the SCM practices (i.e. information technology, level of information sharing, customer relationship, supplier relationship and goal congruence) have a positive impact on performance except the quality of information sharing. The results show that in the time of the pandemic, the retail outlet attributes (image, service quality and convenience) have no significant relationship with the food retailer’s performance while SCM practices are necessary to achieve better performance of the food retailers.

Research limitations/implications

A proactive approach is needed from retailers at the time of pandemic situations to manage the supply chains. The retailers must be extra careful in screening the suppliers for the short and long run. The reason being that in the situation of pandemic, customers might be more demanding and hence, food retailers need to pay special attention to gain growth. It is also required that the policymakers should give importance to the implementation of these SCM practices to be positioned differently.

Originality/value

The research can be valued in terms of its original contribution towards companies in overcoming the disruption caused by COVID-19 to maintain a balance between demand and supply and proposes a completely new theoretical framework. The proposed theoretical model would add value to the existing literature to help the retailers in process of their performance improvement. The study has provided insights for retail organisations, suppliers and government departments to manage their SCs more effectively and efficiently during the pandemic.

Details

Journal of Global Operations and Strategic Sourcing, vol. 16 no. 2
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 5 October 2022

Suvarna Hiremath, Ansumalini Panda, Prashantha C. and Srinivas Subbarao Pasumarti

Food and grocery, which accounts for around 60% of the overall retail market in India, is the most promising area for launching a retail firm. The objective of this research paper…

Abstract

Purpose

Food and grocery, which accounts for around 60% of the overall retail market in India, is the most promising area for launching a retail firm. The objective of this research paper is to conduct a thorough investigation of the impact of customers’ geographic, demographic and psychographic characteristics on the selection of retail store format choice behavior in the quickly growing Indian food and grocery retail industry, also to analyze the mediating role of store image on the store choice behavior.

Design/methodology/approach

A descriptive research design is used to collect data using the survey method and a structured questionnaire. The data collected from more than 400 food and grocery retail customers from neighborhood Kirana stores, supermarkets and hypermarkets in Karnataka, India, would be analyzed using both descriptive (mean and standard deviation) and Structural equation modeling (SEM) techniques. SEM techniques are used for validation of the model with independent constructs namely Demographics factors, Socio-Economic factors, Geographic factors, Lifestyle and Shopping Motives, a Mediating variable Store Image, and a dependent variable Store choice behavior. Partial least squares structural equation modeling (PLS-SEM) is used to examine the suggested theoretical framework.

Findings

The model is tested to reveal the impact of shoppers’ age, gender, occupation, education, monthly household income, family size, and distance traveled to the store, which all play a role in their retail format choice. Also, the socio economic and life style factors of shoppers influence their purchasing decisions as well; store image partially mediates between customer characteristics and store choice behavior.

Implications

The study has practical implications for food and grocery retailer in understanding customer behavior in the context of changing customer demographic and psychographic features in the Indian retailing sector. The findings aid retail merchants, allowing them to develop more successful retail marketing strategies and gain a competitive advantage.

Originality

This study could serve as a springboard for future research in this field. Retail marketers will benefit from the findings in terms of format creation and reorientation of marketing strategies in the shortest time.

Details

Journal of Indian Business Research, vol. 15 no. 1
Type: Research Article
ISSN: 1755-4195

Keywords

Article
Publication date: 1 January 2014

Ritu Mehta, Narendra K. Sharma and Sanjeev Swami

Hypermarket is the most successful amongst organised retail formats in India. The purpose of this paper is to identify segments of hypermarket shoppers based on shopping…

2625

Abstract

Purpose

Hypermarket is the most successful amongst organised retail formats in India. The purpose of this paper is to identify segments of hypermarket shoppers based on shopping motivation. The study profiles the identified segments on demographic characteristics and shopping outcomes, and compares the shopping motivation of hypermarket consumers with that of traditional store shoppers.

Design/methodology/approach

The study involved a survey of 201 actual shoppers in a hypermarket and that of 117 actual shoppers in 20 traditional stores. Principal components analysis of the motives for shopping at hypermarket and traditional store identified the respective dimensions of shopping motivation. Cluster analysis of the factor scores obtained on shopping motivation at hypermarket revealed the typology of hypermarket shoppers. Chi-square test and MANOVA were used to profile the identified segments of hypermarket shoppers on demographic characteristics and shopping outcomes respectively.

Findings

Results revealed different dimensions of motivation to shop at the hypermarket and traditional store and four types of hypermarket shoppers were identified: utilitarians, maximisers, browsers and enthusiasts. The utilitarians are motivated by functional benefits such as the price and variety of products; the maximisers seek functional as well as recreational benefits; the browsers are high on social motivation; and the enthusiasts are high on all dimensions of shopping motivation. These segments showed overall significant differences on demographic characteristics and shopping outcomes.

Practical implications

The proposal for allowing FDI in multi-brand retail in India, a rapidly emerging market for global retail players, is at an advanced stage of policy making. Many national and multi-national retailers are in the process of expansion in India. This study adds to their understanding of Indian consumers. Based on the identified typology, the study suggests different strategies to target different segments of hypermarket shoppers.

Originality/value

The study contributes to the growing field of cross-cultural research on shopping motivation by highlighting the typology of Indian hypermarket shoppers.

Details

International Journal of Retail & Distribution Management, vol. 42 no. 1
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 2 March 2015

Harsh V Verma and Ekta Duggal

Service quality is a perceptual construct that is likely to differ across industries, customer segments and markets. The purpose of this paper is to explore the construct of retail

Abstract

Purpose

Service quality is a perceptual construct that is likely to differ across industries, customer segments and markets. The purpose of this paper is to explore the construct of retail service quality in the Indian context, and identifies quality components as a precursor to developing a quality measure.

Design/methodology/approach

Initially, the construct comprehension was done using exploratory research involving customer depth probes and juxtaposing it with the available literature. After defining the broad contours of retail service quality and surface considerations, the study attempted to discover retail service quality dimensions by factor analyzing the collected data.

Findings

It was found that retail service quality construct is composed of seven critical dimensions – ambience and layout, salespeople, merchandise, convenience, services, prices and customer care.

Research limitations/implications

The specific quality component structure found in this study highlights the need for managers to prioritise their retail operation and marketing efforts in sync with the uncovered quality dimensions.

Originality/value

This paper explored the quality phenomenon in the Indian retail context using a bottom-up approach. This paper provides the much-needed insights to firms that are entering the Indian market on what the quality means and the components it is made up of.

Details

South Asian Journal of Global Business Research, vol. 4 no. 1
Type: Research Article
ISSN: 2045-4457

Keywords

Article
Publication date: 28 February 2023

Sunita Guru, Subir Verma, Pratibha Baheti and Vishal Dagar

The successive waves of the Covid-19 SARS-II pandemic and the attendant lockdown imposed by the governments worldwide drove the economic activities to a halt. Offices and…

Abstract

Purpose

The successive waves of the Covid-19 SARS-II pandemic and the attendant lockdown imposed by the governments worldwide drove the economic activities to a halt. Offices and factories closed, production of goods and services declined and supply chains got severely disrupted. Many companies were embattled with the grim reality of shrinkage of aggregate demand, first due to supply shock and later due to loss of jobs and wages. Amidst all this, the handling and shipping of commodities became extremely complex. As the pandemic shifted consumer preference in favour of digital platforms, more and more fast-moving consumer goods (FMCG) companies were confronted with multiple strategies and choices of an appropriate distribution channel to ensure smooth delivery of raw materials and products. The present study aims to study this shift and its implications in the Indian context.

Design/methodology/approach

A mix-method approach, integrating quantitative and qualitative analysis, is employed to investigate the factors influencing the selection of distribution channels amongst general trade, modern trade, e-commerce and hyperlocal for FMCG companies in India. The first phase of the study uses exploratory factor analysis (EFA), followed by the application of analytical hierarchy process (AHP) approach in a fuzzy environment to realise the priority weights and ranking of the identified factors. Finally, sensitivity analysis is performed to confirm the robustness of the fuzzy analytical hierarchy process (FAHP) outcomes.

Findings

The study revealed that modern trade has emerged as the most favoured channel in the post-pandemic Indian economy. It has the potential to disrupt general trade. The study also revealed that the hyperlocal delivery model is not economically viable, and the partnership of FMCG companies with these applications is at best a short-term solution. However, it must be submitted that due to its sheer capability to ensure quick deliveries within a confined geographic area, hyperlocal delivery will gain momentum with the advancement of technology.

Originality/value

This study can be seen as the first attempt to investigate the issues related to the selection of the distribution channels in the FMCG sector of India using multi-criteria decision-making technique (MCDM).

Details

Management Decision, vol. 61 no. 6
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 11 September 2007

Harri Lorentz, Chee Yew Wong and Olli‐Pekka Hilmola

The purpose of the research is to shed light on the evolution of distribution structures and its consequent implications for supply chain management (SCM) in the context of the…

4202

Abstract

Purpose

The purpose of the research is to shed light on the evolution of distribution structures and its consequent implications for supply chain management (SCM) in the context of the emerging markets of Central and Eastern Europe (CEE).

Design/methodology/approach

A structured literature review followed by two case studies, which combine qualitative and quantitative analysis. Mainly in‐depth interviews were used, with company sales data analysis in terms of variation and forecast accuracy.

Findings

It was found that CEE distribution structures are overlapping, and along complex traditional structures there exists a possibility for a more direct approach. This modern key‐account approach improves supply chain performance, mainly due to echelon elimination and information sharing. The case studies also illustrate that supply chain demand distortion originating practices create uncertainty in demand, even in the case of modern key accounts. The findings therefore suggest that general SCM approaches of the “West” are evident and appropriate also in the “East”.

Research limitations/implications

Owing to the limited number of case studies, this research is considered exploratory. The presented two case studies are essentially illustrative examples of the distribution operations of two international companies in CEE markets.

Practical implications

For practitioners, the two case studies provide important insight on the nature of alternative distribution structures in CEE, and what the level of forecast accuracy and the demand fluctuation may be expected. It is proposed that the emerging opportunities for supply chain partnership development should be carefully reviewed.

Originality/value

The paper draws upon real‐life data from emerging CEE markets with an approach that is not commonly used in distribution and SCM studies on CEE.

Details

International Journal of Physical Distribution & Logistics Management, vol. 37 no. 8
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 14 May 2014

Gordhan K. Saini and Arvind Sahay

This study aims to examine the importance of credit and low price guarantee (LPG) on consumer purchase intention across types of retail store formats in an emerging market…

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Abstract

Purpose

This study aims to examine the importance of credit and low price guarantee (LPG) on consumer purchase intention across types of retail store formats in an emerging market context.

Design/methodology/approach

A 2 (kirana/modern retail)×2 (high/low LPG)×2 (credit/no credit) experimental design was used for this study. A sample of 200 respondents was asked about their purchase intention for a newly introduced hypothetical toothpaste brand and six hypotheses were tested.

Findings

Findings show that credit and level of LPG determine consumer's purchase intention across store formats. The presence of credit and high LPG increases the purchase intention; however, relatively importance of these two varies by type of store. The absence of credit at kirana store definitely reduces the buying intention, while same is not true for modern retail store, where level of LPG is more important than the credit. Interestingly, buyer is likely to discount high LPG for a month's credit offered by a kirana store.

Practical implications

The study can help practitioners and scholars to understand consumer responses to credit and LPG in buying decisions, and subsequently in designing a better product offer at a particular store format in emerging markets.

Originality/value

Important insights are provided about the consumer behavior resulting from the presence or absence of credit and high or low levels of LPG in an emerging market context. The study also has public policy implications in a country where FDI in retail is a hotly debated topic.

Details

Journal of Indian Business Research, vol. 6 no. 1
Type: Research Article
ISSN: 1755-4195

Keywords

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