analytical study of shopping motives of young customers ... · 162 vivek sane and komal chopra /...

Procedia - Social and Behavioral Sciences 133 ( 2014 ) 160 – 168

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1877-0428 © 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license. Selection and peer-review under responsibility of the Organizing Committee of ICTMS-2013.doi: 10.1016/j.sbspro.2014.04.181

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ICTMS-2013

Analytical study of shopping motives of young customers for selected product categories with reference to organized retailing in

select metropolitan select cities of India

Vivek Sane a, Komal Chopra b*aSymbiosis Institute of Business Management, Symbiosis International University, Lavale, Pune, India *bSymbiosis Institute of Management Studies, Symbiosis International University, Khadki, Pune, India

Abstract

The paper analyses the shopping motives of customers in the age group of 15 to 29 years with reference to organized retailing in metropolitan cities of India. Two metropolitan cities, Pune and Mumbai have been selected for the study. The respondents wereasked to identify their predominant shopping motives in organized retail out of a set of 23 motives and relate it to six product categories i.e. books and music, apparel, consumer electronics, eyewear, personal care and home décor using a structured questionnaire. The motives were divided into three broad categories, namely utilitarian motives, hedonic motives and Correspondence analysis was administered to identify the predominant shopping motives for each product category. The findingsindicate that hedonic and convenience motives play a predominant role while shopping in organized retail outlets by the selected age group. The paper provides an important perspective to retailers and research has shown that satisfaction of shopping motives leads to retail patronage

© 2014 The Authors. Published by Elsevier Ltd. Selection and peer-review under responsibility of the Organizing Committee of ICTMS-2013

Keywords: Motives; Organized retail; Shopping

1. Introduction

India ranks as the fifth most emerging destination for retail in the world (A.T. Kearney’s annual Global Retail Development Index, 2012). The retail market in India is divided into organized and unorganized retail. Organized

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© 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license. Selection and peer-review under responsibility of the Organizing Committee of ICTMS-2013.

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161 Vivek Sane and Komal Chopra / Procedia - Social and Behavioral Sciences 133 ( 2014 ) 160 – 168

retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. (Ninetieth Report of Parliamentary Standing Committee on Commerce related to FDI in Retail, Government of India , 2009). Unorganised retailing refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner operated general stores, paan/beedi shops, convenience stores, hand cart, pavement vendors, etc. (Ninetieth Report of Parliamentary Standing Committee on Commerce related to FDI in Retail, Government of India ,2009.

The share of organized retail market as a percentage of the total market is estimated to be 6.5 % ie Rs 1,26,680 crore of the total retail market which is Rs 19,48,916 crore (Indian Retail Report, 2011) and is growing at a CAGR of 27.69 % contributing 2.1 % to the GDP (Indian Retail Report, 2011). There has been a shift in urban consumer shopping behaviour towards organized retail as they seek more product variety and all kinds of products under one roof (Indian Retail Report, 2011). Other factors contributing to the growth of organized retail include rapid urbanization, double income households, changing customer lifestyles and deep penetration of credit / debit cards (National Skill Development Report on Retail, IMaCS, 2009).Consumers have saved more money through discount shopping in organized retail outlets. (ICRIER Report, 2008). The paper investigates the role of consumer shopping motives of young customers. Motive has been explained by different researchers in different ways. The current research has taken the following definition. “Motives are driving forces that impel individuals into action” (Shiffman and Kanuk, 2003). Young customers refers to the selected customer age group of 15 to 29 years which accounts for 100 million population of India (Outlook Business, July 7, 2012).

Approximately 60 % of the Indian population is below 30 years of age (Deloitte Report on Retail, 2011). 100 million people are in the age group of 15 to 29 years (Census of India,2011). The young Indians are brand conscious (Deloitte report on Retail, 2011), have access to more money and are spending on mobile phone, fashion, accessories, food and beverage, etc (PWC, 2011). The median age of population in Maharashtra is projected to be around 29 years by 2016 (National Commission on Population, 2006). The age group selected for study is 15 years to 29 years as this age group accounts for large population of the country and this is also the consumer segment that most companies are targeting. (Outlook Business, 2012). Another reason for selecting the particular age group is that it accounts for younger generation; both working and non-working, married and non-married. This age group of population will be major contributor to growth of retail (Deloitte Report on Retail, 2011).

The metropolitan cities of India account for 68 % of organized retail and are expected to show significant growth in next 10 years (Economic Intelligence Unit, 2006). According to the Constitution of India’s 74th Constitutional Amendment, 1992, a metropolitan city is defined in clause (c) of Article 243P as follows: “Metropolitan area means an area having a population of ten lakhs or more, comprised in one or more districts and consisting of two or more Municipalities or Panchayats or other contiguous area, specified by the Governor by public notification to be Metropolitan area for the purposes of this Part”. According to the Census of 2011, there are 53 metropolitan cities in India (Census of India 2011, Press Information Bureau, Government of India). Cities with population of more than 1 million are on the “watch list” of pioneering retailers and mall developers (Jones Lang Lasalle Meghraj, 2007). The west region dominates in terms of organized retail ie the three states, namely Goa, Gujarat and Maharashtra - account for close to 40 per cent of the total organized retail market (Frost and Sullivan, 2008). Of the 325 malls in India by 2011, 114 are in the western region with Mumbai, Pune and Nagpur showing major growth of shopping malls in the western region (Govt of Maharashtra report on Skill Development in Organized Retail, 2012). According to Retailers Association of India, “Organized retailing in India, especially in Maharashtra, has been steadily growing at more than 35% CAGR, year on year for the last two years, bringing various benefits to the state. They have advocated to Minister of Industries, Maharashtra Government and Maharashtra Industrial Development Corporation (MIDC) to include organized retailing in the sectoral focus area of MIDC for setting up retail stores and malls in Maharashtra”. Hence the metropolitan cities in Maharashtra have been selected for study.

The selected product categories under study refers to those product categories whose percentage share of organized retail market to the total retail market exceeds 15 %. 2. Review of Literature

It is important for retailers to examine consumer shopping motives before finalizing their marketing strategy.

Several researchers have studied shopping motives, resulting in a broad range of literature. Within the context of a buying process, the customer compares the characteristics of a retail outlet with his/her shopping motives and


chooses the retail outlet that best matches his/her needs (Sheth ,1983).

Category Organized Market

(INR crores)

Total Market

(INR crores)

Share in %

1. Apparel 44166 141547 31.2 %

2. Eyewear (Spectacles) 623 1570 39.7 %

3. Consumer Electronics 11684 62836 18.6 %

4. Books and music 3635 21000 17.3 %

5. Personal care 1103 5670 19.5 %

6. Home décor 7530 46665 16. 1 %

Source : Indian Retail Report, 2011

Motives range from utilitarian motivation to hedonic or experiential motivation. (Dawson et al., 1990). Motive of

utilitarian shoppers involves satisfying functional or economic needs and often been characterized as task related and rational (Batra & Ahtola, 1991). Research has also been done on the specific motives. Researchers (Berne, et,al, 2001) have said that consumers seek product variety as a shopping motive. Researchers (Lingenfelder and Loevenich, 2001) have said that the motives of shopping include convenience, price consciousness, offer of personal service, brand orientation. These are also called as product oriented shopping motives (Westbrook and Black 1985). On the other hand, hedonic motivation may relate to hedonic goods which are defined as those whose consumption is primarily characterized by an affective and sensory experience of aesthetic or sensual pleasure, fantasy, and fun (Hirschman and Holbrook 1982). Researchers (Loudon and Bitta, 1993) have classified motives as physiological and psychogenic motives, conscious and unconscious motives and positive and negative motives. Customers also seek entertainment while shopping (Sit and Merrilees, 2002). Researchers (Dawson, et al, 2001) have explained the relationship between shopping motives, emotional state and retail outcomes. Their research findings show that shopping motives affect retail outcomes with emotions acting as mediators. Researchers (Westbrook and Black 1985) have shown that motive strength has a positive relation with customer satisfaction.

Customers link motives to various product attributes. A combination of various motives called “motive bundling” enables customers to take decisions (Loudon and Bitta, 1993). Customers also shop to improve moods and relieve stress (Paden, Stell, 2010). A person may go shopping when wants to be with peers, desires to meet people with similar interests, feels a need to exercise, or has leisure time (Azizi Shahriar, Shariffar Amir, 2011). Researchers (Thomson et al, 1990) have studies that the utilitarian and hedonic motives co-exist with each other amongst the shopping community. A study by Tauber (1972), has shown that the motives could be unrelated to the actual need of shopping. They could be related to the personal and social factors. The personal factors include learning about new trends, to feel better, to gain acceptance amongst peers or a diversion from routine activities. The personal factors include communicating with others having similar interests and reference group affiliation. Researchers (Farrag, Sayed & Belk, 2010) have identified different clusters of consumers based on shopping motives. These include family focused ie those shoppers who shop for convenience and are more focused on utilitarian factors ; hedonists ie those shoppers who consider shopping as a way to spend their leisure time and gain knowledge on new trends and strivers ie those shoppers who combine entertainment with shopping for their daily needs such as household products.

Shopping motives play a very important role in retail store patronage (Roy, 1994). Shopping centers which match the predominant motives of customers have higher patronage (Wakefield and Baker, 1998). Researchers (Bellenger, et al, 2001) observed that that retail store patronage depended on association between shopping motives and the demographic profile of customers. Hence the shopping motives of youth differ from other age groups. The patronage also depends on the product categories. Different product categories have different shopping motives. While some product categories may have strong motives to visit a shopping center, others may be less important for the customers (Yavas, 2001). The shopping motives of online shoppers differ from those of brick and mortar shoppers. However, some of the motives may be common to both the shoppers depending on the product category. (Parsons, 2002). The same has been verified by other researchers (Schramm, et al, 2007).


3. Research Methodology

Secondary data was collected through research reports of McKinsey, NCAER (National Council for Applied Economic Research) reports, AT Kearney reports on retail, ICRIER (Indian Council for Research on International Economic Relations) report, newspaper articles, research journals and websites related to retailing associations. Mall intercept technique was used to collect the primary data from Pune and Mumbai. Among the metropolitan cities of Maharashtra, Pune and Mumbai have the largest number of malls (Cushman and Wakefield, 2009). These two cities also rank amongst the top eight metropolitan cities of India (Census of India, 2011) Malls having space of more than 1,00,000 square feet of space and footfalls of more than 15,000 on the weekends and more than 10,000 on the weekdays were identified for study. These malls house all the prominent stores and brands of the product categories under study. The data was collected on weekends because the highest footfalls are on weekends. The respondents were intercepted at the reception / outside the mall and after ascertaining their age group, a structured questionnaire was administered to them. Questionnaires were also mailed to respondents who preferred to fill an online survey. Non probability purposive sampling was used. A total of 612 questionnaires were administered to respondents out of which 589 were found to be usable. Amongst the respondents, 56 % were males and 44 % were females. 30 % were students , 46 % were in service, 9 % were housewives and 25 % had their family business. Correspondence analysis (Greenarche, 1984) was used to establish the relationship between shopping motives and the six product categories under study. SPSS was used to carry out the analysis. The shopping motives were classified into three categories ie utilitarian, convenience and hedonic motives based on the studies of various researches. The graphical output generated by correspondence analysis has been shown in figure I, II and III.

Utilitarian motives: discounts; personal attention; membership; product quality; reasonable price; international brands availability; product variety; favourite brand availability

Convenience motives: close by location; sufficient parking space; kids zone; movie with shopping; size of centre Hedonic motives: status; branded products; ambience; relieve stress; enjoyment; mood improvement; hobby;

exercising; store reputation; new trends 4. Hypothesis

H1: For the target group under study, the motives other than utilitarian motives play a predominant role in buying decisions with respect to the selected product categories. 5. Results

Table I represents the cross tabulation of frequency between the motive factors and product categories.


Table II shows that the first two dimensions account for 66 % of the total variance. The addition of third dimension ie 16 % explains 82.2 % of the total variance. However, for the sake of ease of display and interpretability, only two dimensional solutions was retained.

Table II

Table III shows the contribution of points to the inertia of dimension and contribution of dimension to the inertia of point. In dimension 1, exercising and store reputation have the highest contribution to the dimension whereas membership has the highest contribution in dimension 2.

Table III


Table IV shows that amongst the product categories, spectacles have the highest contribution in dimension1 whereas books and music and contribution in dimension 2.

Table IV

Figure I


Figure II

Figure III

Perception map


The distance between the products and motives are the chi square distances. The table shows the predominant shopping motives for each product category. 1. Personal Care and consumer electronics – The predominant factors for shopping are enjoyment, mood

improvement and movie with shopping. 2. Books & music – The predominant factors are new trends, relieve stress, discounts and product quality. 3. Apparel and home décor – Since both the categories are closer to zero, there are no predominant factors. 4. Eyewear (Spectacles) – The predominant factors include exercising and shopping and size of centre

The hypothesis has been accepted in case of personal care, consumer electronics and spectacles. Books and music have a mix of utilitarian and hedonic factors. The hypothesis in case of spectacles is also accepted as hedonic and convenience form the predominant motives. 6. Implications

Due to economic slowdown in Indian marketplace, retailers are looking out for customer patronage. Customers will patronize a store if their predominant shopping motives are satisfied (Roy, 1994, Wakefield and Baker, 1998). The paper provides a perspective to retailers regarding customer shopping motives. Hence they should work towards motive enhancement in order to increase retail patronage. For personal care and consumer electronics, stores should be opened in malls which provide gaming zones, movie theatres and other forms of entertainment which lead to enjoyment and mood improvement. The eyewear store should be opened in large shopping centres as size of centre is a predominant factor and customers come for shopping other products in addition to eyewear. This category also catches the eye of window shoppers who come to large shopping centres as part of their fitness walk and may buy spectacles. The books and music store should focus on new collections and discount schemes to attract customers. They can promote book reading sessions as reading is considered an important stress reliever. The apparel and home décor stores have no predominant motives. Hence these stores can act as standalone as well as be opened in large shopping centres to get the advantage of assured footfall. As India is a country of young population with median age of more than 30 years (Census of India, 2011), this population will form the predominant shoppers and catering to their shopping motives will lead to retail patronage and enhance the profitability of retailers. References A.T. Kearney’s Annual Global Retail Development Index, 2011. Azizi, Shahriar, Shariffar, Amir (2011), “Non-Functional Shopping Motives among Iranian Consumers”, Management & Marketing, volume IX,

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