Choice of Retail Store Format: Factors Influencing the Consumer’s Decision

Abstract

The purpose of this study is to provide a general understanding of grocery consumers ‘retail format choices in the Indian market. The methodology adopted in this study is a qualitative, deductive, and interpretive approach. All the interpretations are drawn with a content analysis of recorded, semi-structured interviews and empirical evidence. This study used a stratified sampling method with a sample size of 100. The researcher has used descriptive and multivariate statistical techniques to evaluate the data. This study identifies education and income levels as key demographic factors influencing the retail format choice among Indian consumers. product quality offers and discounts, product displays, facility of online order placement and digital payment options have been identified as the most influential store attributes that determine the choice of format. The results of this study are based on data collected and reported from respondents based on their knowledge and experience in different formats. Limitations of this research include a lack of knowledge on whether each respondent had access to every format. This ultimately limits the applicability of the findings beyond general trends, as indicated by the data. The research provides grocery retailers with specific knowledge of the attribute’s consumers consider the most important when choosing a retail format for their grocery shopping. The results of this study can be used to design marketing strategies and develop communication for target consumers in Indian markets. Considering the growing size of the Indian grocery industry and increasing competition among retailers, understanding the consumer format choice linkage is critical for new entrants.