Retail Paper
Determinants of retail store choice: An empirical analysis by Dr. Namrata Sandhu sandhunamrata@gmail.com Dilpreet Singh mail.dilpreet@gmail.com and
Richa Dhall asmi2ice@gmail.com Abstract
Purpose of research: The current study makes an attempt to establish the most important determinants of retail store choice.
Methodology: A well drafted and pretested questionnaire was conveniently administered to 200 respondents in Tricity (Chandigarh, Mohali, Panchkula). The data was collected over a two month period from December 2011 to January 2012. The collected data was reduced with the help of Factor Analysis. The extraction method used was Principal Component Analysis and the rotation method used was Varimax with Kaiser Normalization. The reliability of the data was establised using Cronbach’s coefficent Alpha.
Major results: The study revealed that store atmospherics, schemes and offers, quality of products and merchandise availability are the most important factors influencing retail store choice. Most of the respondents prefer to shop with the retailer, who as compared to the competion, provides better store ambience, product quality, promotional schemes and service delivery.
Implications: With a number of retailers in news for cutting down expenditures to improve bottom-line growth and in some cases even closing down the stores; the challenge lies in determining the right trade-off between the store choice determinants and costs involved in maintaining the same.
Keywords: Shopping, retail stores, retail marketing, store choice, factor analysis
Introduction and Need of the Study
The shift from mom and pop stores to organized retail is apparent. This change is more common with the youngsters than with the older generation (Baltas and Papastathopoulou, 2003). With the retail sector showing signs of growth over the years, a number of companies have put high bets and invested a huge capital in this sector. With increasing competition from
Richa Dhall asmi2ice@gmail.com Abstract
Purpose of research: The current study makes an attempt to establish the most important determinants of retail store choice.
Methodology: A well drafted and pretested questionnaire was conveniently administered to 200 respondents in Tricity (Chandigarh, Mohali, Panchkula). The data was collected over a two month period from December 2011 to January 2012. The collected data was reduced with the help of Factor Analysis. The extraction method used was Principal Component Analysis and the rotation method used was Varimax with Kaiser Normalization. The reliability of the data was establised using Cronbach’s coefficent Alpha.
Major results: The study revealed that store atmospherics, schemes and offers, quality of products and merchandise availability are the most important factors influencing retail store choice. Most of the respondents prefer to shop with the retailer, who as compared to the competion, provides better store ambience, product quality, promotional schemes and service delivery.
Implications: With a number of retailers in news for cutting down expenditures to improve bottom-line growth and in some cases even closing down the stores; the challenge lies in determining the right trade-off between the store choice determinants and costs involved in maintaining the same.
Keywords: Shopping, retail stores, retail marketing, store choice, factor analysis
Introduction and Need of the Study
The shift from mom and pop stores to organized retail is apparent. This change is more common with the youngsters than with the older generation (Baltas and Papastathopoulou, 2003). With the retail sector showing signs of growth over the years, a number of companies have put high bets and invested a huge capital in this sector. With increasing competition from
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