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The Supermarket Effect –

Analysing the emerging

supermarket trends in New Delhi
(India) and study the consumer
perception towards it….

Brunel Business School

Business & Management (Marketing)
Student Number: *******
MG3116 Strategic Marketing Project

Tutor Name: **********

Word Count: 8,400
Submission Date: 10th March 2008

In the completion for this project support and help of many has been acknowledged.
Firstly I would like to express gratitude to my Project supervisor, who dedicated time
and provided me guidance throughout the semester.

I would also like to thank and appreciate all those who participated in the surveys that
helped me carry out the research and achieve the objectives.

Would also like to acknowledge the contribution and work of other researchers used
as secondary resources.

Finally, I am great full to my family and friends as without their support and
encouragement it wouldn’t have been possible to achieve the set goals.



Chapter 1
1 Introduction………………………………………………6
1.1 Industry Background 6
1.2 Project Rationale 7
1.3 Research Objectives 8
1.4 Research Question 8
1.5 Structure of Study 8

Chapter 2
2 Literature Review………………………………………..9

Chapter 3
3 Methodology……………………………………………...16
3.1 Research Methods 16
3.2 Secondary Research 16
3.3 Primary Research 17
3.3.1 Quantitative approach 18
3.3.2 Qualitative approach 20
3.4 Limitations & Problems 21

Chapter 4
Research Findings & Analysis ……………………………23
4.1 Quantitative Analysis 23
4.2 Qualitative Analysis 33
4.3 Summary 36

Chapter 5
5.1 Recommendations 39
5.2 Limitations & Future Research 40

Chapter 6 41
6.1 Appendix1 Questionnaire 41
6.2 Appendix2 Qualitative findings 48
6.2.1 Focus Group1 49
6.2.2 Focus Group2 51
6.3 Appendix 3: Questionnaire Comments 54
6.4 Appendix 4: Graphs, Charts & Pictures 56
6.5 References 57

India is world’s one of the fastest growing economies with a population of 1.1 billion.
Due to recent economic escalation spending and purchasing power of consumers is at
an all time high. This has had a remarkable impact on the food retail industry as the
standard of living is improving swiftly. Supermarkets in New Delhi were introduced
in early 2000s which initially received limited success but drastically gained market
share in the recent years. Purpose of the study is to determine if this journey is likely
to prove successful and identify the consumer perception towards it. Further, impact
of supermarkets on small traders has been discussed.
Quantitative analysis has been used to gain insights on the consumer perception
towards supermarkets. This also includes the factors that affect their store choice
behaviour and draw their attention towards different retailers.
Qualitative study has alternatively been undertaken to determine the behaviour and
attitudes of consumers in-depth as this would allow respondents to express themselves
Findings form primary research has been correlated with that of secondary sources to
achieve the objectives. Findings suggest that the primary drivers of supermarkets are
likely to be youngsters also referred to as generation-Y as they are the new face of the
nation who are experiencing a transformation of behaviours and cultural adaptation
towards the west. Atmospherics, prices and convenience have been identified as the
factors that would affect store choice of consumers in Delhi. Further findings in
context with the traders suggest that corner shops are experiencing difficult times due
to the introduction of supermarkets because of lack of investment which dose not
allow them to offer improved service as that of the big retailers.
It is recommended that if supermarkets aspire to gain maximum market share they
would need to understand the changing culture and behaviour of consumers. They
further need to offer services that is restricting consumers presently to shift form
corner shops to supermarkets. Lastly, for traders government intervention has been
recommended in order for them to survive and create healthy competition.

Chapter 1: Introduction
India today is one of the largest and the fastest growing economies of the world with
an average GDP nearing 9% in the past decade. Rapid modernisation and constant
economic development has made it a very attractive region for local and Foreign
Direct Investors.
For this project the emerging supermarket trends will be investigated in this mammoth
economy’s capital, New Delhi. The reasons for choosing Delhi is the vast size of
India. Which if chosen as a whole would make the research very complex and time

1.1 Industry Background:

The supermarket industry has recently been introduced in Delhi’s retail sector where
some of the key players would include Reliance-Fresh & Spencer’s. These stores are
looking to maximise market share by attracting consumers on the basis of price and
atmospherics. Presently, corner-shops known as Kiranas account for majority food-
sales and dominate the sector with over 5million grocers all-over India followed by
independent-vendors. They provide sales in smaller quantities (e.g. 100gm-lentils)
along with highly personalised relationship, mainly serving to middle/low-income
groups. Where as organised retailers offer e.g. 1KG packed-lentils serving to
middle/upper class. (GMID-Euro-monitor)
Nonetheless, only 3% of Indian market is organised retail (Business Today, 1999)
which leaves a gigantic gap for supermarkets to fill. A recent
PriceWaterhouseCoopers study suggests that the size of organised retail in India is
only $666million which is likely to grow 30% per-annum (Economic-Times, pg16).
However, potential of organised-retail soars high as it is a $300billion industry which
has set the stage for organised retailers to gain substantial market-share.

In recent years there has been considerable growth amongst middle-class sector in
New-Delhi, increasing the spending power of consumers (Delhi-economic-survey).

“With growth in disposable incomes and improving infrastructure, consumers have a

wide choice of stores where they can choose to shop. It is therefore, necessary for
retailers to understand shoppers’ motivations” (Sinha & Bannerjee, 2004).
Moreover, significant changes in lifestyle with new tastes and preferences have
developed amongst consumers (Economic-Times, pg12). As people gain purchasing
power the market is shifting from price-linked to value-linked where more value is
given to design, atmospherics and differentiation suggests (Chand, 2008-ET-p.12).
Supermarkets are offering a new shopping-trend to all demographics by providing
services that offer convenience and experience along with great-value. In the cultural-
context there has been transformation and adaptation towards western ways of life
which has specifically influenced generation-Y and the middle-age groups.
Traditionally, joint-family culture persisted at Indian homes however statistics
determine a drastic shift towards nuclear families. Recent census of Delhi further
states the average size of family in Delhi is 5 (http://delhiplanning.nic.in) which has
reduced from 10-15 members in one house-hold. Standard of living is increasing
because people aspire to live a better life hence, usually both members of family work
for higher earnings. This has increased the pace of life and time is of great value.
Transformation to this lifestyle demands services that keep-up with the pace and offer
convenience & comfort. As a result, the whole idea of all commodities available
under the same roof is likely to fit-in the newly formed culture.
Historically, consumers solely relied on corner-shops/vendors and most international
supermarket retailers were turned away in the past to protect the domestic retail
industry. Even for local investors it’s been difficult to enter this industry due to
various political problems. Moreover, most traders’ livelihood along with many jobs
dependant on them would be lost due to supermarkets. Such factors have added to the
delay of organised retail expansion.

1.2 Project Rationale:

Food-retail sector is one of the fastest growing industries, yet the nature of shopping
behaviour has not been studied in-depth. This has created a need to identify the
aspects influencing these behaviours and the patterns that will be followed. Lately,
many new retail-formats have been introduced in Delhi hence it is crucial for Indian

corporations to understand consumer buying-behaviour along with their preferred

1.3: Research-Objectives

1. Find out if the consumers are ready for a transformation form the local corner
shops after almost six decades of practice and identify the factors affecting this
2. Evaluate the consumer trends and their perceptions towards the new shopping
3. Identify the factors that may draw consumer interest and determine the success
or failure of supermarkets.
4. Assess the extent to which supermarkets are having an impact on the local
traders and independent shop owners.

1.4 Research-Question:
• Which type of consumers will be the main drivers of supermarkets i.e.
• Do supermarkets raise a serious concern for independent shop owners and

Due to time constrains it’s only possible to generate an overview perception of

Delhi’s consumers and use findings as a basis to identify marketplace for
supermarkets. Even though this research is limited to New-Delhi, the findings should
allow us to gain an understanding of the supermarket trends in other metropolitan
cities of India as the cultural-influences may be similar.

1.5 Structure of Study:

Following chapter will present the literature search which will be compilation of
secondary-sources in context of retail-sector that will help in determining the factors
influencing store-choice. This will be followed by methodology-section that will
establish qualitative and quantitative techniques to gather data. Further, findings and
analysis section will present the data and evaluate it. Interpretations form this section
will be used to suggest recommendations and come to a conclusion.

Chapter 2: Literature Review

The subject matter of changing attitudes and cross culture influences has had a
considerable impact on the consumers of India.
“Cultural meanings include common affective reactions, typical cognitions, and
characteristic patterns of behaviour” stated in (Consumer Behaviour & Market
Strategy 2005 p.288). There have also been common cross cultural changes over the
world which can be applied to the Indian market due to considerable cultural
transformation. The western market’s impact has created similar opportunities for the
supermarkets in India. On similar lines (Currah and Wrigley, 2004) suggest that
supermarkets are more prevalent across a broad range of developing countries.
However, (Sinha & Bannerjee, 2004) argue that high levels of personalised services
such as credit and home-delivery offered by ‘transformed kirana stores’ (corner-shop)
are making shoppers reluctant to the supermarket format as a result several successful
chains are delaying their expansion.

Store-choice decisions are influenced by different attitudes across the society. India is
rated relatively high on Hofstede’s uncertainty-avoidance dimension showing
increasing use of opinion leaders, group-shopping, and reference-groups (Schutte
1999). This certifies high intolerance of uncertainty and slow adaptation towards
change which can further be supported by diffusion of innovation, a framework
developed by Everett Rogers (Keegan 2005). In the Asian context the importance of
response by referrals along with acceptance of an innovation reduces the perceived
risk of product/store choice.

Maslow’s hierarchy of needs – Asian-Context v Western-Context:

Maslow’s hierarchy proposes five levels of human needs which an individual may
experience and fulfil in order to reduce tension and return to a balanced state of
homeostasis (Schutte 1999). It is widely accepted across many social disciplines, and
particularly suitable for the western culture. Maslow him self dismissed the question
of cross-cultural transposability added Schutte. However, this does not make the
hierarchy inapplicable, but when applied cross-culturally some adaptation may be

required to identify how needs of Delhi consumers vary form that of the western

Figure2.1: Maslow’s hierarchy of needs (Consumer Behaviour in Asia: Schutte, 1999)

Figure2.1 and 2.2 demonstrate the same physical needs, as everyone needs to be fed
and protected in order to survive. However, higher level needs in a collectivist society
like India may differ from western societies who are more individualistic. Hence,
individual-and-personal needs at the highest level may not be accepted positively but
can be achieved by response form others and not by self actions. Ciarlante (1999)
further explains that hierarchy in Asian context would be one where social needs are

higher than individual needs and self-actualisation would be replaced by status.

Figure2.2: Maslow’s hierarchy of needs: Asian Equivalent (Consumer Behaviour in Asia: Schutte, 1999)

Attitudes & Behaviours:

Samovar and Porter (1991) believe that values held in a society, strongly influence an
individual’s behaviour in cultural groups. Consumer attitudes are a combination of
beliefs, feelings and behavioural intentions. If consumers form a belief about a
particular trend and feels good about it then their behavioural intentions are very
likely to follow those trends frequently (consumer psychologist). Although, de Mooij
(2005) feels that in collectivist societies people form attitudes that accomplish their
social identity functions forming an inconsistent correlation between attitudes and
future behaviour. Hence, their behaviour cannot be predicted by their attitudes
towards certain products.
Fishbein’s behavioural intentions model measures this relationship between attitudes
and behaviour, also known as theory of reasoned action. This assumes that consumers
consciously consider consequences of different behaviours and decide on the one that

leads to the most desired result (Olson & Peter, 2005). In Delhi this can be used to
asses the perception and opinion of others. In sum, behaviours are performed and
appraised by people that are popular with other people.

Means-end chain follows similar grounds, where consumers asses the outcome of
their actions. This includes attributes along tangible characteristics followed by
logical outcomes which conclude with the value being satisfied. Similarly, if Delhi
consumers use supermarkets and seek benefit, they would repeat that behaviour.
Hence, the service attributes would be proposed subjectively in relation to personal
perceived consequences (Consumer Behaviour: Building Marketing Strategy, 1998)

Nonetheless, means-end chain represents personal meanings of products/services by

individuals which might be unique to each one of them. (Olson & Peter, 2005) Further
suggested, consumers are likely to have different means-end chain for the same
products leading to disparity in opinion.

Fresh Food v Packaged Food:

Traditionally, Indian consumers have given priority to fresh food over convenience,
however recent researches show, as number of working members increased in a
family they prefer more processed food (Bullis, 1997; International-Trade-
Administration, 2000). This shows inclination in favor of the supermarkets by
The Economist (1997) contradicts the above by showing more than 40% of the Indian
population is vegetarian and consumers dislike frozen products including beef & pork.
Hence, a trend that bends away from the supermarket-culture. Reardon et al (2003,
1143) further adds that sales for processed and packaged food at the supermarkets are
relatively low as compared to fresh food. This may pose a serious threat to the
supermarkets due to the lack of interest in processed food.

However, demand for foreign food products is high and continues to grow. About a
decade ago people used to bring foreign goods from trips abroad Bullis (1997). Now
these products are available in the supermarkets as major attractions for the ever-
changing Indian society.

Affect on Traders and Small Farmers:

Supermarkets pose great threat to the small farmers as a new supply-demand chain
may be formed. Big stores would move towards preferred suppliers, and set private
grades and standards which may be very difficult for the local and small farmers to
achieve (Humphrey, 2007). He further adds that UK supermarkets selling a lot of
fresh-food acquire it in ways that appear to be small-farmer-unfriendly. Similar trend
may be followed by the Indian supermarkets, consequently, destroying small traders.
Various supermarkets in India like Reliance-Fresh & Spencer’s have already had this
impact on the lively hood of traders (The Economic Times, 2007). Moreover, due to
mass protest some supermarkets had to pull out of two major states of India (Uttar-
Pradesh and West-Bengal) negatively effecting farmers, traders, supermarkets and
employees who lost their jobs. http://economictimes.indiatimes.com

Socio-Economic Factors:
Social-classes would be another aspect affecting the consumer behaviour. This refers
to national status hierarchy by which groups and individuals are distinguished in
terms of self-esteem and prestige (Consumer Behaviour & Market Strategy 2005
p.339). According to Economic survey of Delhi (2001) the urban population is over
93% with per-capita income of 9.1% which clearly demonstrates growth amongst
social classes.
Past purchase experiences can influence the store choice of consumers which are
further affected by these Socio-economic factors such as income, geography,
personality, age, etc. (Dodge and Summer, 1969). Moreover, Lumpkin et al. (1985)
proposes that elderly people are less price conscious in comparison to youngsters.
This implies that aspects such-as convenience and familiarity of corner-shops will be
of greater importance than savings made at supermarket. (Pettigrew 2005) further
adds from reports that supermarkets do not interest seniors. However, the convenience
factor is contradicted by Lumpkin et al. (1985) itself, as for seniors’ propinquity of

store to house is not a concern. Instead, shopping is considered as leisure activity and
hence is expected to be high on entertainment value (Tongren, 1988).

Atmospherics & Store Entertainment Value:

Kotler (1973) suggests atmospherics as an important aspect for retailers. Most
shoppers find multiple motives in a single trip to stores which may include socialising
or browsing; not necessarily purchasing (Bloch et al., 1994), according to which
atmospherics and entertainment aspects should be focused upon. (Arnold and
Reynolds, 2003) suggest that in-spite of this trend less significance has been paid to
the Hedonic Shopping Motivations.
In addition, staff-attitude, queue-lengths, etc influence their store choice pattern
(Goodwin and McElwee, 1999). Hence, tangible and intangible factors such as staff-
attitude, location and ambiance are vital for consumer appreciation. In comparison of
traditional shops to supermarkets, the latter has an advantage in terms of space,
ambiance and other physical characteristics, creating a better environment to attract
more customers. In addition, services such as coffee-shops and restaurants are also
offered at supermarkets (Nguyen and Nguyen, 2003). According to the over all
economic condition of India, it may not be possible for many consumers to avail such
facilities, as their primary aim would be to fulfil the basic needs. Boone & Bonno
(1971, p. 82) suggest that convenience, friendship and credit are the key basis of
choosing a store for low-income consumers. However, supermarkets provide the
benefit of hygiene in comparison to corner-shops. Hygiene factors are one of the key
considerations, but it is not possible for all retailers (in low-income areas) to maintain
them. Supermarkets prevent these climatic and hygiene problems faced by the
consumers, as regular shops don’t have suitable temperature control equipment nor
are backed up by 24 hour electricity.

This chapter has identified the key models correlating their insights to supermarket
perception in New-Delhi. Maslow’s hierarchy suggests that Indian shoppers may avail
the services of supermarkets to gain social status. Referral-groups were also discussed
as it has been suggested that Indian society performs behaviors by using opinion-
leaders and reference-groups as their adaptation towards new ideas is slow. Third

research-objective has partially been achieved as different factors such as

atmospherics and physical attributes have been identified as primary attractions of
supermarkets. Contrarily, processed, packaged & non-vegetarian food has received
negative comments; hence supermarkets are unpopular amongst vegetarians.
Consumers with different socio-economic backgrounds are likely to have different
perception towards same products, therefore making it difficult for supermarkets to
target correct groups. Lastly, impact of supermarkets on traders has been discussed
which may cause mass-unemployment and huge losses for corner-shop owners.
Objectives of the research are not entirely achieved and further research will be
conducted to gain detailed conclusions.

Chapter 3: Methodology
This research is set out to establish the impact of supermarkets on consumers, analyse
their changing behaviour and assess the crisis that small-traders are likely to face. In
literature review several aspects have been identified demonstrating the impact of
supermarkets in New-Delhi. Consequently, further investigation in the form of
primary research needs to be carried out to gain deep-insights and achieve the
objectives. This chapter would include methods selected for data collection/analysis,
rationale behind selecting those methods, its limitations and advantages for
conducting the research.

3.1 Research-Methods:
Research is a collection and analysis of data gathered from a sample of individuals
relating to their characteristics, behaviour, attitudes or opinions (Market research
society, 1998). Research objectives can be obtained or answered by using both
primary and secondary-research. Collins (1985) further defines research as,
“systematic investigation to establish facts or principles or to collect information on
the subject” (p.1690). (Finn et al., 2000) suggests that existing literature will benefit
primary research and work as a framework for analysis; likewise research carried out
will constantly review, modify and challenge the theoretical details.

3.2 Secondary-Research
Secondary research includes data that has been previously collected and assembles for
projects other than the one in hand (Zikmund, 1999).
This method allows researchers to evaluate and identify gaps in literature with the
help of various sources which further validates the proposal economically. It is
relatively inexpensive as compared to primary-research and can be undertaken
without going into the field. Secondary-research was carried out using sources from
Brunel-University library, personally-owned books and some reliable sources from
internet. Secondary-data resources used:

• Market/ industry reports were referred to; including databases such as

Emerald, GMID, and Mintel etc. These helped to determine the grocery
consumption trends and established other vital statistics supporting the
growing supermarket industry in New Delhi.
• Journal articles, newspapers, magazines, electronic resources were looked at to
gain better understanding of current developments and consumer perception.
Some newspaper articles (online) were specifically relevant that indicated the
current economical and political situation relating to the study.
• Journals and e-journals provided relevant information about consumer
perception. These included articles from Journal of retailing, Journal of
consumer perception and many others that helped to gain a clear insight on
shopping behaviours.
• Delhi economic-survey website was an important source as this included the
recent census report and information found here was specific to New-Delhi.
• Most prominent sources are books that were used to provide theories, models
and identify research-methods.
Different forms of secondary-methods have been used to gather relevant data for
study which can further be analysed to make appropriate implications and achieve
the objectives. This includes topics that have been discussed covering the subject
area and has identified areas that need to be explored. However, there is a
disadvantage of information being outdated as this industry is evolving at a rapid
pace. Secondly, supermarkets have recently been introduced in India, due to
which very limited relevant secondary-sources were available.

3.3 Primary-Research:
Primary-research consists of surveys, observations and experiment data that are
collected to solve a particular problem under investigation, usually conducted by an
individual interested in or studying a specific subject area (Gates et al., 2007). There
will be a lot of emphasis on primary research as there are very limited secondary
resources available for this topic, reason being the recent entry of this sector in New-
Delhi. Primary research would include both quantitative and qualitative approach
which will be based on the research-objectives.

3.3.1 Quantitative-Approach:
Quantitative research is used to find statically significant differences between findings
or analysis (McDaniels and Gates, 2007). This approach involved two steps. Initially,
a pilot questionnaire was constructed followed by the final-questionnaire. A
questionnaire can be defined as “a method of obtaining specific information about a
defined problem so that the data, after analysis and interpretation, results in a better
appreciation of the problem” (Chisnall 2001 p.128).

This was done to test the effectiveness of questionnaires which was determined by
using limited samples that further helped to make amendments in context with
complexity, difficulty, length, etc. The main aim of pilot is to identify and alter loop-
holes that might deceive the end-result due to lack of understanding by respondents
(McDaniels and Gates, 2002). This projected if the objectives were being achieved
successfully by questionnaire design that would maximise the response rate and
minimise errors. http://www.leeds.ac.uk. During this stage respondents taking part in
the survey were carefully observed and their reactions/hesitations were detected.
During the re-evaluation of the questionnaire one question was removed and four
questions were rephrased.

These minor amendments were followed by the final questionnaire on a sample size
of 120 respondents, randomly. The market has been surveyed on the basis of
geographic segmentation by dividing it into different regions (Strategic marketing
planning 2003). To achieve highest and most diverse response rate New-Delhi was
surveyed by splitting into North, South, East and West Delhi. Respondents were
requested to complete questionnaires in and around shopping malls and supermarkets.
In contrast, other lesser developed/low-income shopping regions were surveyed. By
using such segmentation, variety of data has been collected with different prospective
and overview of consumers.
To conduct data collection, Probability Sampling method has been used allowing
each member of population an equal probability of being selected (Fink, 1995). To
make sure the data collected was completely random, rule of every 10 th person has

been followed. This is where ever 10th person who passed-by was given a chance to be
a part of the research, if they wished to do so.

Design of questionnaire:
The questionnaire primarily consists of close-ended questions restricting response
rate, hence making data easier to analyse and tabulate. These included both
dichotomous and multiple choice questions which helped in speeding-up response. In
dichotomous questions, besides two fixed alternatives, option of neutral response such
as “maybe” and “not applicable” were included to reduce polarity of alternatives and
achieve accurate data. Further, scaled-response questions were used, which helped
measure the intensity of answers (McDaniels and Gates, 2007). Besides this Likert-
scale and rank-order questions were also added for consumer to evaluate their
perception in realistic terms.
Few optional open-ended questions have been included for respondents to freely
express their thoughts. Even though it may be complicated to analyse such question
but, “it would provide with rich array of information” which will enhance the
significance of data collected (McDaniels and Gates, 2007, p337).

Justification of questions:
Quantitative study did not specifically target specific demographics because it aimed
to gain an overall impression of customers, towards supermarkets. This can be related
to the second-research question as it is important to identify differences in perception
of young v/s old consumers. (Appendix1) Question4, 5, 7 & 11 have been aimed to
identify the buying behaviour and will help in answering the third research objective.
Fourth objective enquires about the penetration supermarkets have achieved in
Delhi’s market, which will be assessed by the findings from question7-10 and 13.
These questions enquire about the consumers’ perception towards supermarkets and
discover the attributes that attract them towards different retailers. The remaining
questions help to generate a general overview of an individual’s interests, further
classify the extent to which supermarkets have established in their minds and pockets.

3.3.2 Qualitative-approach:
Qualitative-methods have been undertaken in the form of focus groups that help in
examining attitudes, feelings and motivations of product users (Essentials of
Marketing Research 2003 p.208). This has allowed, collectively gaining an
understanding of consumers and recognizing their perspectives about changing styles
in-depth. (McDaniels and Gates, 2007) explain that, “the goal of a focus group is to
learn and understand what people say and why. The intent is to find out how they feel
about a product, concept, idea or organisation and how it fits into their lives.”
Two focus groups with different demographics have been analysed. The arrangement
was highly complex and difficult to achieve, however it was necessary to carry-out
these in order to identify the influence of supermarkets on different consumers.

First focus group comprised of university students and young couples (18 yr – 32 yr)
which were intended to take place at the Delhi-University campus but later it was
decided to hold the discussions at an informal environment. This was done to make
participants feel comfortable and hence freely expressing their shopping behaviours.
This focus group included 8 participants, however only 6 were present for the
Second focus-group specifically included middle/old aged housewives and working
women as traditionally Indian women manage the grocery and house-hold shopping.
Secondly, young couples and students belong to generation-Y with different views
form the previous generation, hence generating a contrast of opinions. This discussion
included 6 participants in an informal environment. Both focus-groups lasted for
approximately 35 minuets. These discussions would help in achieving the second
objective as the impact on traders has been discussed by many participants.
Additionally, participant’s preferred shopping styles were discussed along with the
reasons influencing their choice. The research conducted was unbiased; however, the
sample was non-representative as it does not stand for the whole population of Delhi.
Interviews were not conducted because of their complexity and the high skill involved
in extracting the appropriate information. Moreover, it would be difficult to get hold
of suitable people in the management, who might not be willing to hand out their
company information.
3.4: Limitations & Problems:

The sample used for the study will not represent the whole population. Hence,
analysis of about 150 people cannot determine the perspective of 13.8 million people.

Respondents may provide invalid answers or may not want to be a part of the
research. As Clarke and Critcher (1985) explain that there is often gap between what
the respondents say and do.
To overcome these problems 120 questionnaires will be conducted. As a result even if
a few erroneous samples are removed it would not affect the analysis.

Time was very crucial as the primary research was conducted over Christmas. This
was held in New-Delhi, hence each stage was carefully planned and execution of all
focus groups had to be done precisely.
The research carried out, included the cost of travel and living in India. Stationary,
local transportation and room-allocation (focus-groups) costs were also involved in
procuring primary-data.

Lack of secondary sources had a huge impact on my research. Previous readings were
limited and it was difficult to find relevant material in relation to the study. This was
because of recent introduction of supermarkets in the retail-sector; hence no author
has studied this subject in-depth.

In terms of ethical concern, the sentiments of respondents were taken into

consideration while designing the questionnaire. Similarly, the discussions in focus
groups were directed carefully, which included arguments directly related to the topic;
not concerning to any personal or religious matters. One major aspect that affected
research was the vast diversity of religions and different social backgrounds. Hence, it
was important that remarks or questions were avoided relating to these sensitive

The respondents for Focus-Group one were collected by personal contacts, word-of-
mouth and a few notice boards in the Delhi-University campus. Conversely, focus-
group2 was much more complex because it was very difficult to convince ladies to

come to a specific place for research purposes. This is because many did not
understand why I was conducting this research and others were not confident enough
to engage into a discussion. Finally, after a few personal contacts and word-of-mouth
at work-places of friends and family few respondents agreed to participate in the

Chapter 4: Research Findings & Analysis:

This chapter involves presentation and analysis of findings form the primary-research
conducted. Several data-analysis techniques are assisted by graphs and charts to
present these findings and achieve suitable results.

4.1-Quantitative Analysis
Primary-research involved two focus-groups and a questionnaire survey. 120
respondents were surveyed by questionnaires, however 21 were erroneous. Hence, the
analysis will comprise of 99 findings. It is important to identify demographics this
sample included which can be demonstrated by the following tables.



This survey includes respondents from all age

groups giving male and female almost equal
opportunity to express their feelings.
It was found that grocery shopping is considered
as an essential activity (50%), however many
respondents (29%) enjoyed the experience, as
results can be seen below.


Earlier chapter-2 referred that customers saw shopping as a socializing experience due
to which supermarkets in Delhi are focusing on the entertainment aspect alongside
with other services. This can be further supported by figure-4.2 where majority of the
shoppers felt that entertainment was significant a characteristic of supermarkets.


Hence, it can be interpreted that shoppers visualise a visit to supermarket as an

‘outing’ which not only provides commodities but includes an entertainment package.

However, besides entertainment other factors such as income-levels, convenience and

distance influence store-choice behaviour. Figure-4.3 exhibits the respondents with
different economic backgrounds:


Members from most income-groups were surveyed, which includes data with
different perceptive towards various issues. Figure-4.3 has been correlated with the
findings from Question-10a/b/c (Appendix1) where 31% people had never
experienced shopping at supermarkets. In my findings it was initiated that out of this
31%, almost all respondents belonged to low-income groups. A respondent on this
remarked, “It is financially not possible for people like us to shop at fancy places.”
Majority of the comments suggested that low-income consumers perceived
supermarkets to be expensive without experiencing it. In conjunction, 99% consumers
who had experienced supermarkets planned to repeat their behaviour. Their comments
supported findings from Question-6 which proposed that 77% respondents thought
their expenses were rising and further found supermarkets to be cheaper (not always)
that helped them manage expenditures.


The findings and discussion above explains that despite of varied income-levels,
59.5% respondents’ store choice is affected by price. Hence, value-added services are
essential but price is a key factor.


However, these findings oppose results of table-4.3, which suggest that more people
give priority to convenience over price (Table4.4). There is no theoretical justification
for this contradiction; the only reason that’s visible may be the physiological factor, as
I personally give price priority over everything but when given detailed options, my
opinion usually changes.
Question-4 reveals 67% respondents were wiling to travel longer distances for the
sake of convenience. This is because lack of availability of house-hold products under
one roof. Findings from Question-7f (Appendix-4) further finds that 61% consumers
shopped at a range of retailers to gain more variety of products.
These factors present the need for supermarket culture in Delhi’s retail market,
making the lives of consumers simple. The success of traditional-shops appears to be
because of lack of alternatives to consumer, however now that they have an option the
supermarket trend may soon over-shadow corner-shops.

In the open-ended Question10c many said, their reason for choosing supermarkets
was because of convenience. They further mentioned that the extreme climate of
New-Delhi made it difficult for consumers to shop at Kariana stores (corner-shops).
Chapter-2 discussed the advantages supermarkets have in terms of being spacious,
having fewer queues and no power-cuts. This is a major attraction for many and as
one respondent from the low-income groups said, “I go to supermarkets because of
air-conditioning and my kids like it.” This quote clearly explains the effect
supermarkets have on individuals as they aspire to improve their standard of living by
utilising new services and form positive beliefs and attitudes towards a better life.
Secondary research highlights that India is a collectivist society and most behaviours
are often repeated if they are followed and accepted in the society. Diffusion of
innovation in the Asian context similarly reflects the importance of referrals that are
very powerful in Indian culture. This can further be associated with findings from
Question-7e, which in the table below shows that 92% respondents would try new
stores by referrals and recommendations.


This to an extent reveals the amount of trust society has developed amongst each
other, but because of a reason. Due to high uncertainty avoidance people find it
difficult to adapt to new trends and use opinions of others to make their own
decisions. Hofstede’s uncertainty avoidance certifies intolerance and slow adaptation
towards change. This is supported by the results of Question-9 where more than 50%
people would not want to give up the traditional corner-shops even if supermarkets
were more beneficial. One of the comments included, “there is definitely a catch
behind the low pricing, because how can they sell cheap stuff and still provide 5*
comfort facilities?” This shows the presence of doubts in the mind of the consumers;
however, these attitudes are not formed by majority of the respondents as other

comments (appendix-3) show appreciation and understanding towards the

significance of supermarkets in their lives.
Table-4.6 particularly suggests that 88.5% respondents are likely to visit supermarkets
again which agrees with means-end chain theory. This is because they grasped the
service attributes and benefited from it, hence likely to repeat behaviour.


Cultural and religious sentiments are other aspects that are vital in determining the
success of products and services in food related markets in India. Secondary research
identified credit and home-deliver as key factors for the success of corner-shops.
These services can be certified as a part of the Indian culture that not only exists in
retail sector, but every aspect of life, e.g. house-hold helpers, cleaners, etc. These
services are used by most people and not just the upper-class. Figure4.4 supports the
argument as many respondents identified credit, home-delivery and distance as the
primary determinants of store-choice.


However, only 15% opted for personalised relation, which counters the arguments
from secondary research; hence a transformation of opinions.

Chapter-2 further talks about vegetarian population which is relatively high in India
(Figure-4.5). Along with high% of vegetarians frozen-food is unpopular which moves
customers towards traditional fruit-&-vegetable vendors (Figure4.6). Key customers
of vendors are seniors and reasons for their choices are:
• High bargaining power.
• Home-deliver with variety of food.
• Personal-relationship has formed over the years increasing trust and
confidence of high quality.
Hence, these factors counter the fact that older people always prefer to shop at
supermarkets from secondary research and agree with Pettigrew’s comments.


However, when findings from figure-4.6 and table-4.7 are correlated it is found that
majority of students/youngsters were willing to purchase frozen and other foods
particularly from supermarkets for convenience instead-of vendors. Another reason
for the popularity of vendors is because 97% of the market is unorganised retail which

doesn’t leave much choice for consumers.


A-different correlation between figure-4.5 and table-4.7 was that almost all
vegetarians did not prefer to buy frozen processed food as it is usually perceived as
meat products. But the middle-aged housewives purchased from a combination of all.
As a result to this many local supermarkets have introduced fresh-food outlets where
only the latter is sold. E.g. Reliance Fresh – specialises in fresh-food. (Appendix-4)


It is clear from the above findings that to some extent the younger generation is
adapting to supermarket culture but the older people do not want to move-on. Recent
economic boom has also resulted into an escalation in standard of living and

increasing the new-generation’s pace of life. Adaptation of the western culture and
transformation to this lifestyle demands convenience services such as supermarkets
that are quick and simple.


The findings from figure-4.7 can be coincided with Fishbein’s behavioural intentions
model because it suggests that consumers consider results of different behaviours and
follow the one with most desired results.
From all arguments and findings in this chapter it is unclear what is the primary
choice of consumers and the fact that 67% respondents selected both supermarkets
and corner-shops suggests that it is an open-market. However, to a great extent we
have identified the driving forces of these choices and the different aspects
influencing them.
Findings in table-4.8 will provide a clear understanding of services that are rated by
respondents in terms of personal preference:
Store Cleanliness
Imported product range

Overall satisfaction
Staff Etiquettes

The list above and table-4.8 demonstrates the importance of price, distance and
location influencing store-choices. Atmospherics, hygiene and imported products
have medium preference. Staff etiquette is low on concern for respondents. This table
will allow us to summarise the findings of questionnaire and correlate them to the
literature search which entails each factor in the list.
Price and distance are the most common factors affecting success of supermarkets;
however, the motive of supermarkets is not clear amongst many consumers i.e.
“cheaper shopping and all of it under one roof.” This is followed by the varied
perceptions of generation-Y v generation-X. Seniors want quality and convenience
which is perceived to be home-delivery and trusting/personalised relations with the
seller. On the contrary youngsters see convenience as swiftness, direct contact with
product and importantly additional service offered (restaurants/loyalty-cards/car-


Further, the alternative primary research method will be presented along with it’s
analysis to understand research objectives 2&3 and the research questions.

Focus Group1–Students & Young Couples (Appendix2):
The overall outlook of this group was positive initially. The most common
appreciation factor of supermarkets is protection from weather and good parking.

“I used to get ripped-off by the vendors” (Appendix2)

Youngster perception varied from the other group’s to a great extent. From bargaining
point of view this group saw the fixed prices of supermarkets as a positive. Reason for
this could be the lack of knowledge, as in “Sabji-Bazzar” (open-fresh-food market)
consumers may be unaware of the prices and hence, may get cheated. This argument
can also be supported by the fact that high competition in the retail sector will not
give supermarkets a chance to over-charge hence a benefit to consumers.

“The buy two get one free offers we get; are they always worth it?” (Appendix2)
The quality of both fresh and packed food was arguable. This can be correlated with
offers and schemes on display. Most supermarkets make bulk purchases which allow
them to get cheaper commodities as compared to corner-shops. The same cannot be
done by the latter because of lack or absence of cold-storage space and equipment.
Furthermore, to make bulk purchases lots of money needs to be invested in stock
which may again be a difficulty for small traders.
However, respondents complained about the quality of food in supermarkets. Due to
bulk buying supermarkets tend to put their fresh-food on schemes to clear the stock as
soon as possible, else it will “go-bad”. The packaged food on offers has a similar
catch. After personal observation in supermarkets and group discussion it was seen
that shelf-life of food was much shorter in comparison to corner-shops for the same
products. Hence, it may be a possibility that big-players have contracts with packaged
food companies to buy products with shorter shelf-life at cheaper prices to help clear
the supplier’s stock and further put them on exclusive offers.

“If I had a choice between some random transformed corner shop and a well
established supermarket, of course it will be the supermarket.” (Appendix2)
The comment above suggests the influence of supermarkets on youngsters. Referring
to secondary research, Maslow’s hierarchy of needs in Asian context suggests similar

needs. Choosing supermarkets over transformed corner-shops may be because of

prestige issues. Since the services provided by both are similar there will not be much
product/service differentiation, hence a reputation concern. The quality is arguable as
discussed above which according to my findings does not greatly impact youngsters.
From the findings it can be said that preference of youngsters is influenced by brand-
name and the perception that has been formed in the surroundings. This would
support secondary research that Indian society is collectivist. Respondents visualize
supermarket products as high quality. This image of high quality products has been
created by consumers who as suggested are being followed by others. However, the
contradiction to Fishbein’s model form secondary research is that it suggests
consumers choose behaviours and follow ones with the most desired results. Even
though they do not desire the quality they still believe in the service and follow that
behaviour. This contradiction suggests that maybe convenience is the primary driving
force of youngsters. Hence, the service that “speeds-up” their lifestyle and “keeps-
up” to their pace survives i.e. something exactly that a supermarket provides them
Arguments-relating-to-traders-will-be discussed in conjunction to the second discussion.

Focus Group2–Middle-aged women (Working & House wives):

“Just walk in, get a trolley, pay and you’re done.”

This group proved to be more significant for the study because from questionnaire
findings it was seen that 26yr-55yr olds were the primary decision makers in house-
holds, usually female; especially for grocery-shopping. There was a minor split
between thoughts of working-women v housewives. Initially, similar points such as
weather and good-parking space were discussed.
Interestingly, ladies identified feelings of insecurity amongst the society and added
they felt safe at supermarkets. In secondary-research, Maslow’s hierarchy in both
contexts have been discussed and throughout the analysis only higher-level needs
were looked-at. However, this group-discussion has identified that the lower-order
needs were not being met as feeling of security was not satisfied. Hence, the new
shopping style is playing an important role by not only improving consumer lifestyle
but also satisfying basic-order needs.

A common attribute pointed out in both group-discussions was the poor quality of
fresh food. This has moved many away form supermarkets towards vendors. Similar
to youngsters this group decided to opt for convenience i.e. they prefer door-to-door
service provided by vendors and they believed they had more variety as-well.
However, an important factor that needs to be pointed out is that even though both
groups opted for convenience, their handiness was completely different. Where
youngsters see convenience as buying everything from one store and no bargaining;
contrarily ladies see it as home-delivery hence, difference in attitude towards similar
comfort factors. This suggests the diverse factors that may influence consumer
behaviour and make them perform actions to satisfy their desires.
Since, quality and convenience are of higher importance to this group they decided to
shop from both types of retailers. This supports the findings form figure-4.6 and 4.7
which identifies preference of consumers as both Kiranas and supermarkets.

“I don’t think Kiranas will survive for long.”

It is believed that Kiranas are unlikely to survive in the retail sector for long because
of harsh competition by supermarkets. Findings suggest that in recent past many
corner-shops have been waved out by big players, mainly due to financial advantages
and political powers. India being a developing country suffers from factors such as
poverty usually leading to corruption. Respondents blamed the government for not
taking appropriate actions for the welfare of traders and believe they have been
bribed. This comment is probably true but cannot be proved. Furthermore, it was
mentioned that supermarkets have established in big locations as well as in small size
markets as convenience stores. This is expected to adversely affect not just food
retailers but traders selling commodities similar to supermarkets. Introduction of
supermarkets to every other street will draw consumers and take away the market-
share form small shops. This in short-run may affect the livelihood of many people.

4.3 Summary:
Primary research analysis has resulted in significant findings and achieving the
objectives of the study to a great extent. Consumer perception of New-Delhi is
changing at a good pace who have adapted to the new shopping-trend. However, this

adaptation has not transformed customers completely. Supermarkets are bent on

driving the traditional corner-shops out of this sector and capitalise on market-share.
But it has been found that even though consumers are ready for the transformation,
they are not keen on giving-up practice that has been going on for decades. This may
not be applicable to youngsters as they see supermarkets as an avant-garde service
which has improved their lifestyle. Even older consumers value this service, but they
seem to have identified a few gaps relating to the quality and ethical-issues towards
small-traders. It’s been found that convenience and price are the driving forces of
retail industry and convenience for every individual comes at a different level.
Similarly, price is usually correlated with quality. Interestingly, some visualize
supermarkets as expensive because of the premium services offered which is untrue.
Major attractions have been identified as cheap-prices, weather-proof, parking, ease
of access and everything under one-roof. Even though it has not been mentioned
directly, atmospherics are important to consumers as the initial reaction towards
supermarkets is usually “spacious, beautiful-&-clean” which has been gathered form
the findings.
Economy is booming and buyer power is increasing, leading to growth in the retail
sector. Middle-class holds a healthy population which is likely to avail such services
and make an impact on supermarkets. However, it can be argued that one specific
class or generation will not primarily determine their success. Reason for this could be
the rapidly changing attitudes in Indian society making it difficult to establish a stable

Chapter-5 Conclusion:

Consumer market in India is changing, as people are beginning to spend more money
they expect maximum level of service-standard in return. This need has paved way for
many corporations towards the launch of supermarkets.
Furthermore, standard of living is increasing with strong adaptations towards the
western culture. Supermarket effect is one of the factors that have influenced the
consumers and created desire for an improved lifestyle. Ever-since, supermarkets
have been introduced in New-Delhi most stakeholders have been influenced which
has led to diverse behaviours that have been analysed in this study.
The retail market is being swept away by supermarkets and the small traders are
caught in the wave. This on the other hand, is likely to increase competition which
would improve services by traders to match that of supermarkets. As a result of this
consumers will benefit from the improved services. Even findings illustrate the
transformation of corner-shops to compete against bigger stores. Local traders
however have been adversely affected by supermarkets because of lack of financial
strength and political power.
Bulk purchases allow supermarkets to sell same products for lesser prices which in-
turn is annihilating high-street retailers and causing unemployment. Additionally,
vendors might be driven out of business leaving thousands unemployed. On the
contrary supermarkets not only create employment but increase the standard of living.
Presently massive investments are being made in India by locals and MNCs who are
providing platforms for a stronger economy and increasing the potential to generate
greater amount of money. In the long run if consumers spend more the supermarket
sales are likely to raise leading to an economic boom. Nonetheless, government needs
to intervene and create short-term plans because this economic escalation is not likely
to come into effect in the near future and by the time it reaches low-income groups
small-traders won’t survive.

In the end it is difficult to conclude if consumers are ready for a transformation

because there is no one best way. Store-choice decisions are dependant on numerous
aspects which are separately perceived by everyone. These decisions are mainly
driven by convenience, price and the atmospherics of a store. Analysis from the
findings works as an evidence in support of these arguments.
Consumers are manipulating retailers, using both services to their own advantage.
Hence, there is no-set trend that follows one type of shopping. In-spite of success in
recent years, supermarkets have lost value and reputation in relation to their product
quality. Moreover, recent ban of supermarkets in some states bough them bad
publicity. This is because consumers have realised that superstore expansion will
cause damage to the local traders leading to redundancies.
Further, it was found that consumer perception, attitude-and-behaviour changed in
different demographics. Variation in perception of youngsters and elders is likely to
determine the success of supermarkets as both groups have different needs. But in the
long run youngsters are likely to be the main drivers of this sector as their
convenience and behavioural patterns correlate with the services offered by
supermarkets. The present economic patters suggest that Y-generation is likely to
have high spending power while the Indian economy is booming.
Supermarkets can be classified successful in the context that they have satisfied
higher-order-needs (Social) in Maslow’s hierarchy (Asian). Additionally, respondents
accomplished their lower-order needs (security) which are categorized as basic. Most
response gathered in relation to supermarkets was positive, leading to the fact that
different demographics discover different benefits from a common service.

Hence, it cannot be said confidently if consumers will appreciate the transformation

of corner-shops to supermarkets but their lifestyle have been altered to a great extent.
This is an emerging trend and it is too early to determine its performance. Contrarily,
popularity as a whole has increased leading to an increase in market-share. An
industry which has 3% organised retail, 30%growth every-year and is worth more
than $300 billion certainly has a potential for growth in future.

• After much discussion it can be said that the Indian society has accepted the
new shopping format. This should be taken as a positive sign and the big-
players who should capitalise on this by introducing superstores similar to
Tesco-Extra or Wal-mart which not only supply home groceries but all
commodities and appliances.
• Store franchises should be offered to current Kariana-owners (corner-shops).
This is likely to create more jobs and improve the Kariana standards in terms
of hygiene, atmosphere and service. This is likely to benefit everyone i.e.
traders, supermarkets and consumers. In-addition supermarkets would
automatically gain significant market share as those shops would already have
a customer base. Consequently this would help supermarkets gain public
confidence and positive media attention.
• Further government intervention is required to promote healthy competition.
Presently, supermarkets are banned in two states of India. Such extreme
actions would have caused redundancies for thousands along with losses to
supermarkets in millions. Hence, to overcome such severe situations
supermarkets should be restricted to a certain area. E.g. only one supermarket
in the radius of 15-20 miles. This would save jobs and at the same time small-
shop-traders may continue their businesses in local/smaller high-streets.
• For supermarkets to gain maximum market-share they need to fully satisfy
customer needs regardless of their demographics. This study has found that
different demographics have varied implications towards supermarkets which
have made it difficult for supermarkets to target the right customers. They
should realise that each consumer category has different needs as comfort
might be perceived differently by separate categories. So if older consumers
preferred home-deliver then it should be introduced.

• Chapter3 mentions the lack of interest in processed food by consumers, which

can be avoided by specializing in fresh-food supermarkets.
• Since generation-Y is the future of this market, online-selling might be another
option as internet usage is more popular with youngsters.

5.2-Limitations & Future Research:

As in case of every research, data collection methods in this study had their
limitations and benefits.
• Chapter-3 discussed the limitation of questionnaire survey as 120 samples
are not considered to represent the whole population. Further research
should be conducted with more open-ended questions to gain a deeper
insight of customer views.
• Geographically, North/south/east/west Delhi was covered which primarily
surveyed consumers near shopping-malls and grocery stores. Future study
should involve a diverse sample from wider geographical locations.
• Due to time constrains only two focus-groups were held. More qualitative
discussions with diverse demographic should be surveyed allowing to
identify the preferences and perception of a larger sample.
• To gain more suitable insights interviews and higher-level of qualitative
research would be beneficial. Hence, in future it is recommended to survey
people with appropriate knowledge who will be able to identify aspects
that the retail-sector lacks and factors affecting its performance.

Chapter-6 Appendix:
6.1 Appendix 1: Questionnaire
I am a student of Brunel University, as part of a research I would like your opinions

concerning the emerging supermarkets and their impact on citizens everyday life.

Could you please spare a few minutes to provide information that would be invaluable

for understanding customer needs. Information provided will remain confidential and

not shared with a third party.

Q1. What is your general view about grocery shopping?

(Please tick  the most appropriate option)

 Essential  Leisure  Routine  Not Sure

Q2. Which of the following services would primarily affect your grocery store


(Please tick  as many)

 Credit  Home Delivery  Personalised relation

 Convenience from base  Low fuss returns  None of the


Q3. Please rank the importance of the following aspects that you might consider

before deciding which store type to shop at?

(Where 1 is the most important and 8 the least important)

Atmospherics ____

Price ____

Location ____

Distance ____

Imported product range ____

Staff Etiquettes ____

Store Cleanliness ____

Overall satisfaction ____

Q4. Would you prefer to shop for all domestic items at one store, at the cost of

covering longer distance (5Km-10Km)? (Please tick  one)

 Yes  No  Maybe

Q5. Would you buy frozen vegetables and other frozen food for convenience and

saving time? (Please tick  one)

 Yes  No  Maybe

Q6. Have your household costs increased in the recent past? (Please tick  one)

 Yes  No  Maybe  Not known

Q7. Please indicate the level of agreement and disagreement on each of the

following statements by  the most appropriate box:

Strongly Disagree Neither Agree Strongly

Disagree Agree or Agree


A. I select the store to shop

at for grocery shopping

B. I am the primary

decision maker in the

C. Lower prices are likely to

influence my store choice

and purchases.
D. Convenience for me has

more importance over price

in most aspects.
E. I would try-out a new

store if recommended by

F. Do you shop at a range of

retailers for more product

G. Most corner shops

should follow the

supermarket culture in

terms of environment and


Q8. In supermarkets there will be access to merchandise and customers will be

able to touch and feel the product without the help of the shopkeeper. This

phenomenon is likely to attract you to supermarkets. (Please tick  one)

 Strongly agree  Agree  Neither agree or disagree

 Disagree  Strongly disagree

Q9. If supermarkets are largely more beneficial then would you be willing to give

up the traditional Kariana stores? (Please tick  one)

 Definitely, yes  Probably, yes  Might or might not

 Probably not  Definitely not

Q10. Have you experienced shopping at a supermarket? (Please tick  one)

 Yes  No

(If yes the go to Q10b else please move to Q10c)

Q10b) Are you likely to repeat this behaviour and return to the


 Yes  No  Maybe

Q10c) If possible please identify the reasons for the above choice:




Q11. If ever you purchase fresh fruits and vegetables would you procure them

from ‘radie wallas’ (road side vendors)?

(Please  the most appropriate box. You may tick  more than one box)

 Yes, usually  I might got to supermarkets

 I might go to corner shops  All of the above

Q11b. If others, please specify if possible:


Q11c. If possible please give reasons for the above choice:




Q12. Are you a vegetarian? (Please tick  the most appropriate box)

 Yes  No  NA

Q13. In terms of entertainment/socialising and added value services, to what

extent do you think the facility of restaurants, coffee shops, etc. may pull you

towards supermarkets? (Please tick  the most appropriate box)


 Definitely would draw my interest  Probably would draw my interest

 Might or might not draw my interest  Probably would not draw my interest

 Definitely would not draw my interest

Q14. Which type of store is most commonly used by you for grocery shopping?

(Please tick  the most appropriate options)

 Kariana Stores (Small corner shop)  Supermarkets

 Both  Other (Please specify) ___________________________

Q15. Please tick  the box that somewhat indicates the income bracket to which

you belong per annum:*

 Up to Rs. 15, 000 (£195)

 Between Rs.16, 000-Rs.25, 000 (£208-£325)

 Between Rs.26, 000-Rs.35, 000 (£338-£455)

 Between Rs. 36, 000-Rs.55, 000 (£468-£715)

 Between Rs.56, 000-1lack (£728-£1300)

 Between Rs 1.1Lack-Rs. 5Lack (£1,430-£6,500)

 Between Rs. 5.1Lack-Rs.10Lack (£6,625-£13,000)

 Rs.10 Lack+ (£13,000+)

 N/A

Q16. Please tick  the box that indicates your age group:

 16-20  21-25  26-35  36-45

 46-55  56-60  61+  NA


Q17. Gender (Please tick  the most appropriate box):

 Male  Female

*(Currency Conversion are approximate where £1 = Rs. 77)


6.2 Appendix 2: Qualitative findings

Two focus groups were organised in Delhi which included students & young couples
and the second group comprised of middle-aged women. The following transcripts
have been extracted from focus group1 and followed by focus group2. Since, the
discussions were held in India, respondents used the local language which was Hindi.
Hence, all transcripts have been translated. Due to translation it was not possible to
get the exact word for word discussion. But the findings have been prepared in a way
that they should provide the most accurate results. Translation from Hindi to English
was performed by me as Hindi is my mother tongue and I have studied English as a
first language which should assure the correct use of both languages. Due to
confidentiality reasons the names of respondents will not be used in the transcripts.

Research Objective 2, 3 & 4:

Q. Evaluate the consumer trends and their perceptions towards the new shopping
Q. Identify the factors that may influence the success or failure of supermarkets.
Q. Assess the extent to which supermarkets are having an impact on the local traders
and independent shop owners.

To understand the consumer behaviour that influences their shopping style, store
choice and availing certain services. These objectives aim to identify the impact of
supermarkets on consumer lifestyle and in return what is their perception towards this
service. Lastly, the impact on the traders will be looked at. This will include the

disorder of distribution channels caused due to the introduction of large players and
the future of the local corner shops.

6.2.1 Focus Group 1 – Students & Young Couples (18yr – 32 yr)

Respondent 1: Supermarkets are a blessing. I mean, them finally coming to Delhi has
really made my life easy.
Respondent 3: I agree to this. Earlier at the Karians stores I had to wait for the
shopkeeper to serve the customers before and then hand me over my stuff. Now I
don’t need any one’s help in getting the food or whatever I need to buy.

Respondent 2: I’d like to add the hot weather and the extreme climatic conditions of
Delhi. Oh dear!! The best part is these markets are air-conditioned and I do not have
to wait for my turn to come in the heat.

Respondent 6: Prior to supermarkets I had to face the same problems in the “sabji
bazzar” (open fruits & vegetable market). In addition I used to get ripped-off by the
vendors because I never knew the right prices of most of the assorted food that was

Respondent 1: The bargains are really good as well. Not just on fresh food as you
said but packaged and processed food as well. Last week I bought 4 cartons of juice
for the price of 2. I mean, that’s brilliant!

Respondent 4: I agree with all the points you guys are making but I would like to add
to the point that respondent1 just made. I doubt the freshness of the food that we get at

supermarkets. I am not saying there is anything wrong with it but it’s not always
The buy two get one free offers we get; are they always worth it?

Respondent 5: So you mean they are trying to get rid of the excess stock before it

Respondent 4: That may be one of the reasons.

Respondent 6: Might be because of bulk purchases but I still think it’s great for us. In
a way we benefit from these offers and so does the supermarket because they buy
things cheaply.

Respondent 3: So basically, it’s a good thing because everyone benefits from it.

Respondent 2: Well!!! What about the Kariana Store owners (corner shops)? They
have no where to go.

Respondent 1: I remember a few years ago when supermarkets were recently

introduced, there were only limited stores. But now they are building them

Respondent 3: Even in all smaller streets you mainly get to see franchise or sole
owned supermarkets, or as some may call them convenience stores.

Respondent 4: The small players do not have the capacity to compete with them and
they are loosing out on consumers fast.

Respondent 6: But there was a corner shop down the road of my house, it has totally
transformed into a new shop with similar characteristics of a supermarket.

Respondent 2: How many small retailers do you think can do that? Very limited
one’s who have heavy financial back-up. The day a supermarket opens across that

shop it will be very difficult for the single kariana shop to survive. Which one would
you go to?

Respondent 3: Well, if I had a choice between some random transformed corner shop
and a well established supermarket, of course it will be the supermarket. But you need
to realise not all Kariana’s are transformed.

Respondent 2: So you’ll go with the brand.

Respondent 1, 3, 4 agree with the same fact.

Respondent 5: The supermarket will certainly be a better option because of the

amount of schemes they offer. Plus at supermarkets I always feel there is a guarantee
of quality and the feeling of reliability exists. Does anyone else feel that way?

Respondent 1: I would agree to some extent as at the back of my head I feel similarly
towards supermarkets.

6.2.2 Focus Group 2 – Middle aged women (Working & house


Respondent 1: Supermarkets have had a certain impact on my life and of-course it’s
positive. I save a lot of time and more importantly energy. Just walk in, get a trolley,
pay and you’re done.

Respondent 2: It’s kind of a routine thing now. Since I work, earlier I never used to
get a chance to wait or have the energy to look out for offers or bargain with the

Respondent 4: To be hones it was a relief for people like us, especially for women,
because Delhi is not the safes place in the world and so when you are in a enclosed
environment with many people around you, one tends to feel secure.

Respondent1, 2, 3, 5 & 6 agreed to this point.


Respondent 6: It’s secure and in addition they are clean and bright.

Respondent 3: Parking and the weather is not a problem which makes it very

Respondent 5: I agree with all the points that have been made but to some extent I
still favour my corner shop. The shop is clean and I can’t especially go to a
supermarket for every little thing. E.g. If I need a carton of milk, then going all the
way to supermarket is not always convenient.

Respondent 2: For smaller and quick purchases even I purchase stuff form my corner
shop. The good part is they usually home deliver, so just need to give them a call and
that’s it!

Respondent 1: Well!! It’s not the same thing anymore. As in, supermarket shopping
for me is not just buying groceries. I understand most people here are short of time,
but since I am a house wife, it’s not that big a problem. The supermarket placed near
my house is in a shopping mall. So it’s usually a mix of both, house work gets done
and some time for leisure.

Respondent 4: Hmm. But quality wise I do not always trust the supermarket

Respondent 3: Especially the fresh food, even I don’t.

Respondent 4: I get them from vendors only. The freshness of food is more and since
I got to ‘sabji bazzar’ (open fruits & vegetable market) I have so much options.

Respondent 2: I have never had any problem with the freshness of supermarket food,
when I am going to a shop to get half of the things, it doesn’t make sense to waste
more time by going to other places.

Respondent 3: Well maybe because you work its better for you going to just one
place, but even I would prefer a mix of both places. Not only for fresh food but all

Respondent 5: That’s true. I understand that supermarket culture is a western thing

but corner shops are culturally the Indian way to shop. So I personally wouldn’t want
to completely shift my shopping to supermarket.

Respondent 1: But I don’t think Karianas will survive for long.

Respondent 5: Why is that?

Respondent 1: The big players are taking over this sector at a really fast pace, there
are not many corner shop owners who will be able to survive this.

Respondent 6: The big corporations have invested millions in this business. There is
no way the local Kariana shops can compete them.

Respondent 4: Unless the government does something to help them. Which is very
unlikely, the whole political system is corrupt. The big players feed them with money
and they do nothing for the welfare of the poorer people.

Respondent 2: I agree with the corruption comment, but the govt. did ban
supermarkets in a few states in India. That was done for the welfare of local traders

*Transcripts for both focus groups have been translated. The irrelevant and
repeated material has been edited out from the discussions presented above.

6.3 Appendix 3: Questionnaire Comments

Look at Appendix1 Question 10

1. Because each n every item is placed properly and u can have a variety of all
2. All need items available under one roof. At times good discount offers. Gift
vouchers accepted. Can compare the product range.
3. I get everything under one roof and it is convenient for me.
4. Hygiene
5. As they provide variety of products and a good atmosphere.

6. Super Stores provides best prices, variety and convenience for my bulk
purchases. I can shop independently taking my own time and making my
7. Shopping there is also not affected by weather conditions and they also
provide a glimpse of the new launches in the market.
8. The most important factor for me is more variety, ambience, distance and
9. Convenience only.
10. Its more convenient to shop from the super market as u get everything under
one roof and that too probably at the same price. Moreover the product can b
easily replaced if there is any problem which may not be possible if you are
buying the product from a normal store

11. I get good range of products to buy form.

12. Super Stores provides best prices, variety and convenience for my bulk
purchases. I can shop independently taking my own time and making my
13. Shopping there is also not affected by weather conditions and they also
provide a glimpse of the new launches in the market.
14. Supermarkets provide more variety, lower prices, abundant quantity, newer
product range and ideas, leisurely and hindrance free shopping , convenient
and ample parking space, good ambience , food courts, variety of products
under one roof and faster payment procedure.
15. The heat factor, good parking, spacious.
16. Its user friendly for me, staff is helpful, availability of everything. Don’t have
to wait.
17. Even though it’s far from my house, there is no problem of going to different
shops for little things, don’t have to wait in the queues in the heat/cold being
pushed around by other people. Spacious and clean environment
18. It was a good experience, staff was very helpful, and all similar items were
placed appropriately close to each other.
19. The convenience factor, everything is available at one place, benefits such as
loyalty cards and store points, parking, weather factor, close to my house

Look at Appendix1 Question 11

1. From both radie wallas (vendors) and stores. Depends on the quality of

2. Depends upon convenience

3. More bargaining power, very convenient

4. I mix it all up.

5. Tradition

6. They come right outside my house, don’t have to carry it from shop to home, I
know this vendor for the last 5 years, hence he won’t cheat on quality or
7. They are cheaper, comes outside my house, I can choose form many vendors
8. Better bargaining power, I can choose from a large variety of radies

6.4 Appendix 4: Graphs, Charts & Pictures:


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