Store choice in an evolving market

Abstract

The objective of this study is to identify, at a macro level, the drivers of store choice in various product categories, in the context of the evolving retail industry in India. The paper attempts to correlate the distinct store features as perceived by respondents with the true motivations of various consumers in patronising various stores. In the process it provides insight as to whether the average Indian consumer values the new store dimensions offered by retailers as a part of the new formats emerging in the market place. The framework evolved for evaluating effectiveness of newer store formats is necessary since it has a major impact on the overall profitability of the retailing business. Suggests that customers in a developing market such as India do not require the service paraphernalia offered by many of the new store formats emerging in the market and notes that this may cast a serious doubt over the retail revolution, which has taken shape in the Indian markets lately. Some hypotheses about the evolution of the retailing business in India, which requires further investigation, are suggested.