Influence of the shopper characteristic on retail format choice decision for food and grocery retailing in Pakistan

Abstract

Introduction 5 1.1 Background of Study 6 1.2 Problem Statement 7 1.3 Objectives of the Study 7 1.4 Significance of the Study 8 1.5 Delimitation 9 2 The Literature Review 11 2.1 Store & Format Choice 13 2.2 Shoppers’ socio-economic factors 15 2.3 Shoppers’ demographic factors 16 2.4 Shoppers’ geographic factors 18 2.5 Shoppers' psychographic factors 19 3 Methodology 21 3.1 Introduction 21 3.2 Research Questions 21 3.3 Major Past Researches 22 3.4 Literature Yet Unexplored 23 3.5 Objectives of the Study 23 3.6 Existing Research Methodologies used in retailing 24 3.7 Research Design 24 3.8 Introduction and Facts about retailing in Pakistan 25 3.9 Population 25 3.10 Sampling 26 3.11 Research Tools/ Instruments 28 3.12 Data Collection 29 4 Data Analysis and Interpretation 30 4.1 Methods of analysis 31 4.2 Data Analysis and Interpretation 32 4.2.1 Profile of respondents 33 4.2.2 Respondents prime store format choice behavior 34 4.2.3 Purchase pattern of food and grocery products 35 4.2.4 Respondents purchase volume of food and grocery products 35 4.3 Factor analysis 37 4.4 Emperical results and discussion 40

5 Theoretical Frame work and Hypothesis………………………….41 & 42 5.1 Variables………………………………………………………………………………………………41 5.2 Type of Variable………………………………………………………………………………………41 Dependent Variable……………………….………………………………………………………………41 Independent Variable……………………….……………………………………………………………41 5.3 Hypothesis ……………………………………………………………………………………………42 Hypothesis Diagram………………………………………………………………………………………43 6 Conclusion and recommendation 45 6.1 Conclusion 45 6.2 Implication of the study 46 REFERENCES 47 ANNEXURE Appendix A Frequency Tables 53 Factor Analysis Tables 57 Cross Tab Tables 63 Appendix B Questionare 72

Chapter 1 Introduction The grocery retailing segment in Pakistan has seen a huge transform in the last few years with the opening of latest outlets around the country and as well as the introduction of new retail format. The most prominent trend among all retail sectors can be seen in the grocery business. Conventionally , grocery shopping was limited to neighborhoods general store or "kiryana" store both characterized by the format counter service, easy credit conditions, the narrow variety and personal service. There is now a trend towards Retail consolidation has resulted in self-service stores, providing convenience in the form of organized aisles, more choice, push the trolley system, and a single check out point. In addition, with the advent of global retailer’s such as Makro, Metro, Hyper Star and Seventh Avenue the retail atmosphere in Pakistan has changed dramatically. There are some macro- ecological forces that affect the fortunes of grocery and food retail store sector in Pakistan. The size of consumer’s demographic socio-economic and geographic are driving into an organized retail formats to the wants and tastes of the perceptive consumers which was once small traditional retail outlets. But the continuous change in the consumers psychographic variables such as behavior, benefit, opinions and shopping purpose have thrown in a lot in the increase or growth of the retail formats like ease stores, discount lay ups, super-markets and hypermarkets. In Pakistan Past studies regarding shopper behavior and Attributes are limited to the shopper’s money and time payments pattern and demographic outline for the specific retail format. Further there is an unqualified change in the consumers shopping point of reference and purchase behavior towards the grocery retail format choice because of the espousal of “value for time” and “value for money”.