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Determinants of retail store choice: An empirical analysis


Doctor Namrata Sandhu

[email protected] com

Dilpreet Singh

mail. [email protected] com


Richa Dhall

[email protected] com


Purpose of study: The current study makes an attempt to establish the most important determinants of store choice. Methodology: A well drew up and pretested questionnaire was conveniently implemented to two hundred respondents in Tricity (Chandigarh, Mohali, Panchkula). The data was collected over a two month period coming from December 2011 to January 2012. The collected info was decreased with the help of Factor Analysis. The extraction technique used was Principal Component Analysis as well as the rotation method used was Varimax with Kaiser Normalization. The trustworthiness of the data was establised using Cronbach's coefficent First. Major benefits: The study revealed that store atmospherics, schemes while offering, quality of goods and products availability are definitely the most important elements influencing retail store choice. A lot of the respondents choose to shop with all the retailer, whom as compared to the competion, provides better retail outlet ambience, item quality, promotional schemes and service delivery. Implications: Which has a number of stores in news for scaling down expenditures to boost bottom-line development and in some cases actually closing down the stores; the process lies in identifying the right trade-off between the shop choice determinants and costs involved in maintaining the same. Keywords: Shopping, retailers, retail marketing, store choice, factor research

Introduction and Need in the Study

The move from little stores to organized retail is noticeable. This modify is more normal with the youngsters compared to the elderly (Baltas and Papastathopoulou, 2003). With the price tag sector exhibiting signs of development over the years, many companies have got put high bets and invested a massive capital in this sector. With increasing competition from the equivalent, comes the task to meet and exceed the customer expectations. Because of this, what consumers buy, simply how much they buy, from wherever they acquire and why they buy are intriguing questions confronted by the businesses and experts. A number of experts have spoken of factors just like customer service, selection, ambience, marketing schemes etc . that impact the customers' choice of the businesses and the basket size of acquisitions (Bhalla and Bhaskar, 2011). These factors when working positively effect customer satisfaction and purchase behaviour (Bhalla and Bhaskar, 2011). For companies, it is extremely difficult to concentrate on all the factors simultaneously due to high cost involved with sustaining these kinds of factors. Given this scenario, a purpose was experienced to execute a study geared towards determining the most crucial determinants of retail store decision and talk about its significance for firms powering the retail sector.

Literature Review

Determing what attracts a client to a store has aroused the interset of many research workers in the past. Around 1983, Arnold et. approach. pointed out that top quality and range of products, followed by display techniques and price of the products were important factors critically influencing store decision decision. Mahadevan and Kaur (1991) further established retail outlet ambience and shopping encounter as the most key elements driving the costomers' decision of where to search from. The results of the study were reinforced by a research done by Baker et. al. in 2002. While becoming in syncronization with the benefits of past similar research, this study also establised perceived products value and shopping experience costs since having a bearing on the selection of retail store.

Baltas and Papastathopoulou (2003) further established a powerful corelation between retail store choice and demography of the clients. Their analyze revealed that while shopping comfort appeals to customers of all demographic profiles, it...

References: Nuovalus and Papastathopoulou (2003) " Shopper Features, Product and Store Decision Criteria: A Survey in the Greek Grocery Sector”, Worldwide Journal of Retail and Distribution Supervision, Vol. thirty-one, Issue 12, pp. 498-507.

Bernardi, 3rd there’s r. A. (1994). " Validating Research Results when Cronbach's Alpha can be below. seventy: A Methodological Procedure”, Educational and Internal Measurement, Volume level 54, Issue 3, l. 766-775.

Bhalla and Bhaskar (2011) " Are Retail Stores Losing their Charm? ” The Financial Times, January 10, 2011.

Carpenter and Moore (2006) " Buyer Demographics, Retail store Attributes, and Retail Structure Choice in the usa Grocery Market”, International Diary of Retail and Syndication Management, Volume. 34, Concern 6, pp. 434-452.

Goswami and Mishra (2009) " Would Indian Consumers maneuver from Kirana Stores to Organized Merchants when Shopping for Household goods? ”, Asia Pacific Diary of Marketing and Logistics, Vol. 21, Issue 1, pp. 127-143.

Mahi and Mahi (2007) " We are inside the Retail Age” Marketing Mastermind, January – March Concern.

Malhotra, Naresh (2007). Factor Analysis. In: Fundamentals of promoting Research (Sage Publications), pp. 586-607.

Reutterer and Teller (2009) " Store File format Choice and Shopping Trip Types”, Worldwide Journal of Retail and Distribution Managing, Vol. thirty seven, Issue almost eight, pp. 695-710.

Zikmund, G. W. (1994). Business Analysis Methods, Harcourt Inc.



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