Documente Academic
Documente Profesional
Documente Cultură
on
Low literate consumers and their patronage of unorganized
retailing
Submitted to:
Prof. Anubhav Mishra
KOMAL
KSHITIJA NAGARKAR
MAITREYEE GOSWAMI
SANISH KAMAT
SAYANTAN NAHA
Table of Contents
1. Introduction 2
2. Research Questions 2
3. Objective 3
4. Hypothesis 3
5. Conceptual Model 4
6. Methodology 5
7. Analysis 5
8. Annexure 25
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1. Introduction
Our research purpose was to study low literate consumers and their patronage of unorganized
retailing. By low literate consumer, we mean that the consumer has studied not more than 8th
standard. India started its Retail Journey since ancient time. In ancient India, there was a
concept of weekly HAAT, where all the buyers & sellers gather in a big market for bartering.
It takes a pretty long times to & step to shape the modern retail. In between these two concepts
(i.e. between ancient retail concept & the modern one there exist modern kirana/ mom and pop
shops or Baniya ki Dukan. Still it is predominating in India, so the Indian retail industry is
divided into two sectors- organized and unorganized. Retailing is one of the pillars of Indian
economy and accounts for 10 percent of its GDP. India is one of the fastest growing retail
markets in the world, with 1.3 billion people.
Unorganized retail sector it is defined as an outlet run locally by the owner or caretaker of a
shop that lacks technical and accounting standardization. The supply chain and sourcing are
also done locally to meet the local needs. Unorganised retailing, refers to the traditional formats
of low-cost retailing, for example, the local Kirana shops, owner manned general stores,
paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.
2. Research Questions
Research Question 1: Does salary of a person affect the importance given to price while
purchasing?
Research Question 2: Does the salary of a person impacts his decision of coming back to a
kirana store again?
Research Question 3: Does age of a low literate person impact his enthusiasm towards
exploring the store environment?
Research Question 4: Does age of a low literate person impact his consideration of shopping
as a recreational activity?
Research Question 5: Does preference to go to a store with employees with friendly
behaviour depends on the salary of a person?
Research Question 6: Does Overall experience of the low literate customers depends on their
gender?
Research Question 7: Does gender of the low literate customer impact on quality of product
purchased?
Research Question 8: Does gender of the low literate customer impact on store environment
preference?
Research Question 9: Does loyalty of a low literate customer depend on gender of the
customer?
Research Question 10: How convenient the customers feel at the store depends on their
gender?
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Research question 11: Does the overall satisfaction level of the customer with the store has
no effect loyalty of the customer towards a store?
3. Objective
The objective of this study is to understand which factors contribute to the patronage of low
literate customers in unorganized retail.
4. Hypothesis
Hypothesis 1: There is no significant difference on impact of price of product based on salary of a
consumer.
Hypothesis 2: There is no significant difference between re-visiting intentions of a person based on
his salary
Hypothesis 3: There is no significant difference within different age groups of illiterate people
regarding enthusiasm towards exploring the store environment.
Hypothesis 4: There is no significant difference within different age groups of illiterate people
regarding consideration of shopping as a recreational activity.
Hypothesis 6: There is no significant difference between the overall experience of customers based on
gender.
Hypothesis 7: There is no significant difference between the means of Quality of product purchased
based on gender of the customers.
Hypothesis 8: There is no significant difference between the means of Store environment preferred
based on gender of the customer.
Hypothesis 9: There is no significant difference between loyalty of a customer towards a store based
on gender.
Hypothesis 10: There is no significant difference between the means of convenience level of males
and females.
Hypothesis 11: There is no significant difference between the loyalty levels of a customer based on
his satisfaction level for a store.
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5. Conceptual Model
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6. Methodology:
Sample
For the first stage of our research, we conducted in-depth interviews as a pilot test where we took
interviews of 12 respondents. As we had to check the patronage of the low literate customers, the
education qualifications of the samples we consider was less than 8th standard. The sample size is
mix of both male and female respondents and also the income level ranges from 8000 to 25000.
For the second stage of the research we used survey method where we used Likert scale to measure
their agreeableness for various factors which will further help us to find the reasons behind their
patronage towards unorganised sector.
There are two types of data collection process i.e. Primary data collection and Secondary data
collection. The data collection that we have used is primary data collection method. As our project
revolved around low literate consumers their patronage of unorganized retailing, we initially
designed questionnaire for the same. We then conducted the in-depth interview for a sample size of
12 people. The data that was collected during the in-depth interview was analysed and a field survey
questionnaire with Likert scale was designed. Field survey was conducted and data was collected
with respect to each question asked. The Likert scale were assigned values from 1 to 5 where 1 being
strongly disagree to 5 being strongly agree. Total of 56 questions were asked to 12 people. Since our
target people were low literate consumers, it would not have been feasible to float online
document, as it would be very difficult for them to fill it and hence, we printed the questionnaire so
that it would be very easy for them to fill it.
7. Analysis
Qualitative
In-depth interview is analysed by two ways:
1. Content analysis
• Most of our respondents are males and their education level is between 3rd standard to
8th standard
• Based on what product they are purchasing, buying frequency changes from weekly to
monthly and the people who purchase weekly buy as per their requirement and the
ones who buy monthly buy in bulk
• All of the respondents think that they are smart shoppers
• All the respondents prefer going to the shops where they can bargain
• Most of the respondents doesn’t get affected by the advertisements or celebrity
endorsement
• Most of the respondents think that the products they buy meet the specifications
• All of them prefer quality products and the products should be in their budget
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• Speed of transaction is important for them and facilities like home delivery is not that
important
• All of them like to share about their purchase experience with other people
• Most of the respondents prefer going to the stores where there is return facility
available
• Cleanliness and attractiveness is the single most important factor as expressed by the
respondents
• The respondents prefer going to the stores where the owner is friendly
• The respondents like to have the picture on the product as it helps them buying that
product
• They like to go to small stores because they feel that big stores are expensive. Also, thy
are satisfied of what they get in the small stores.
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Quantitative
Data Cleaning:
H0: There is no significant difference between the means of convenience level of males and females.
Interpretation: Since p value > .05 (alpha), so we fail to reject the Null Hypothesis. It means
that how convenient the customers feel at the store depends on their gender In Lavene’s test, since
sig. (p value) > .05, so we look for equal variance assumed and thus refer to the Tukey test.
H0: There is no significant difference between the means of Store environment preferred based on
gender of the customer.
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Independent Variable: gender
Output:
Interpretation: Since p value > .05 (alpha), so we fail to reject the Null Hypothesis. It means that
Store environment preferred does not depend on gender of the customer
In Lavene’s test, since sig. (p value) > .05, so we look for equal variance assumed and thus refer to
the Tukey test
H0: There is no significant difference between the means of Quality of product purchased based on
gender of the customers
Interpretation:
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Since p value > .05 (alpha), so we fail to reject the Null Hypothesis. It means that quality of product
purchased does not depend on gender of the customer.
In Lavene’s test, since sig. (p value) > .05, so we look for equal variance assumed
H0:There is no significant difference between the overall experience of customers based on gender
Dependent variable: mean of Factor1
Interpretation: Since p value > .05 (alpha), so we fail to reject the Null Hypothesis. It means
that Overall experience of the customers depends on their gender
In Lavene’s test, since sig. (p value) > .05, so we look for equal variance assumed and thus refer to
the Tukey test
H0: There is no significant difference between Loyalty of a customer towards a store based on
gender
Output:
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Interpretation: Since p value > .05 (alpha), so we fail to reject the Null Hypothesis. It means that
Loyalty does not depend on gender of the customer. In Levene’s test, since sig. (p value) > .05, so we
look for equal variance assumed and thus refer to the Tukey test
H0: salary of a person doesn’t impact his decision of coming back to a kirana store again
Interpretation: from the above figure we can see that the significance value is greater than .05,
which implies that we failed to reject the null hypothesis that there is no significance difference in
the variance of the data.
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Interpretation: From the above table we can see that the significant value is greater than .05, so we
can say that we failed to reject that the salary of a person doesn’t impact his decision to come back
to a kirana store again.
Interpretation : From the above figure we can see that the significant value is greater than .05 in all
the cases, which implies that for none of the categories of income has an influence on the
customer’s decision to come back to a store.
H0: preference to go to a store with employees with friendly behaviour doesn’t depend on the
salary of a person.
Interpretation: The significant value is less than .05, which implies that equal variance doesn’t exist
so we will use non parametric games howells test.
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Interpretation : From the above figure we can see that the significance value is less than .05, so we
can say that we failed to accept the null hypothesis that there is no significance difference between
the people belonging to different categories of income and their preference towards a shop with
more friendly employees.
From the above table we can see that significance value between middle and high income is very
high than .05, which signifies that our null hypothesis is true for higher and middle income group
however we failed to accept the null hypothesis for lower and middle income group and lower and
high income group which means presence of friendly employees in the store creates difference on
the basis of the salary.
H0: The salary of a consumer no effect whether price plays an important part in his shopping
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Analysis: As P value is >0.05, hence we fail to reject the null hypothesis.
Conclusion: The salary of a consumer has no effect on whether price plays an important part in his
shopping.
H0: The overall satisfaction level of the customer with the store has no effect on whether he is loyal
to that particular store or not.
Conclusion:
H0: The overall satisfaction level of the customer with the store has no effect on whether he is
loyal to that particular store or not.
Conclusion:
Factor analysis:
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We did exploratory factor analysis for data reduction. Initially we got 13 factors after running
factor analysis in SPSS. Then we removed the variables which were cross-loaded on multiple
factors one at a time and after that, we again performed the factor analysis. After removing the
variables which were cross loaded we finally got 6 factors.
Correlation Matrix
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The correlation matrix is significant as the determinant value is .000, which is less than 0.05.
We did not get the KMO and Bartlett's Test table as we had small data set.
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From the Total variance explained table we can infer that the factors which we got after data
reduction explains 86.9% of the model. And we take into considerance the factors, which have
Eigen value greater than or equal to 1.
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From the rotated component matrix, we can see that there are 6 factors and according to the
similarity in the variables we have named the factors.
For Factor 1:
For Factor 2:
For Factor 3:
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Case Processing Summary
N %
Excludeda 0 .0
Total 18 100.0
Reliability Statistics
.980 4
For factor 4:
N %
Excludeda 0 .0
Total 18 100.0
Reliability Statistics
.808 4
For factor 5:
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Case Processing Summary
N %
Excludeda 0 .0
Total 18 100.0
Reliability Statistics
.760 3
For factor 6
N %
Excludeda 0 .0
Total 18 100.0
Reliability Statistics
Cronbach's
Alpha N of Items
.727 3
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Cronbach alpha checks the internal reliability of the scale. And for all the factors
Cronbach alpha is more than 0.5. So, we can rely on the scale.
Result analysis:
Text output:
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• Default model represents the model which is specified based on the data. As
can be seen above, default model is unidentified.
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• Model Fitness summary: As can be seen from the generated report, PCMIN=
CMIN/DOF,
As degree of freedom = 556
So, PCMIN = -1.7 / 556 = -0.0031 which is within the limits (i.e. <=3)
8. Annexure
Questionnaire
(i) Yes
(ii) No
Do you visit any mall or big store in last six months?
Please share the name of the malls where you have been visited in
last 6 months.
nor Agree
Disagree
Disagree
Disagree
Strongly
Strongly
Neither
Agree
S. Agree
Statements
No.
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Accessibility of transport is good from my
6 place. 1 2 3 4 5
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I always evaluate the product before making
29 my purchase decision. 1 2 3 4 5
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53 Overall I am satisfied with the mall. 1 2 3 4 5
54 I am very loyal to that mall. 1 2 3 4 5
I the future, I plan to come to the same
55 mall. 1 2 3 4 5
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