literature review 1

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1 .ABSTRACT:- The retail sector is expanding and modernizing rapidly in line with India’s economic growth. It offers significant employment opportunities in all urban areas. Unorganized retailers in the vicinity of organized retailers experienced a decline in their volume of business and profit in the initial years after the entry of large organized retailers. The adverse impact on sales and profit weakens over time. There was no evidence of a decline in overall employment in the unorganized sector as a result of the entry of organized retailers. The rate of closure of unorganized retail shops in gross terms is found to be 4.2 per cent per annum which is much lower than the international rate of closure of small businesses. The rate of closure on account of competition from organized retail is lower still at 1.7 per cent per annum. There is competitive response from traditional retailers through improved business practices and technology up gradation. A majority of unorganized retailers is keen to stay in the business and compete, while also wanting the next generation to continue likewise. Small retailers have been extending more credit to attract and retain customers. 2. LITERATURE REVIEW:-According to Cherish Mathew (2009), “Aggressive expansion by organized retailing has, in turn, promoted certain political, legal and social issues, raising apprehensions about the future of traditional/unorganized retailing. When compared with the unorganized sector, organized

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Page 1: Literature review 1

1 .ABSTRACT:- The retail sector is expanding and modernizing rapidly in line with India’s economic growth.It offers significant employment opportunities in all urban areas. Unorganized retailers in thevicinity of organized retailers experienced a decline in their volume of business and profit inthe initial years after the entry of large organized retailers. The adverse impact on sales andprofit weakens over time. There was no evidence of a decline in overall employment in theunorganized sector as a result of the entry of organized retailers. The rate of closure ofunorganized retail shops in gross terms is found to be 4.2 per cent per annum which is muchlower than the international rate of closure of small businesses. The rate of closure onaccount of competition from organized retail is lower still at 1.7 per cent per annum. There iscompetitive response from traditional retailers through improved business practices andtechnology up gradation. A majority of unorganized retailers is keen to stay in the businessand compete, while also wanting the next generation to continue likewise. Small retailershave been extending more credit to attract and retain customers.

2. LITERATURE REVIEW:-According to Cherish Mathew (2009), “Aggressive expansion by organized retailing has, in turn, promoted certain political, legal and social issues, raising apprehensions about the futureof traditional/unorganized retailing. When compared with the unorganized sector, organizedretailing is expected to provide several benefits to the customers as well as suppliers andwould contribute signification to the nation’s economic development in the long run. Theretail structure in India expected to settle at a new equilibrium, accommodating both theorganized and unorganized retailer. As the government’s intervention in the retail business is

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likely to reduce in future, customer preferences and market forces will determine the eventualoutcome. The overall attitude likely to change favorably.

2.ABSTRACT:- Retailing in India came with evolutionary patterns from Kirana store tosuper market. This sector was un-organized in the initial stage, and afterthat it is carried forward and now it is growing as supermarket andhypermarket. The paper will depict the main drivers of the retail revolutionin India and how this revolution changes the buying behavior of thecustomer, increase in disposable income of the middle class, infrastructuredevelopment and changing customer choice. Organized Retailing isintroduced in the last decade and has emerged as one of the sunriseindustries in India. The paper will mention the impact of organized retailingon unorganized sector. The study will indicate how the consumer will bebenefited from organized retailers. The survey intends to analyze theconsumer behavior towards organized and unorganized retailing, theirsource of purchasing and the factors which influences their mall purchasingin India. 2.LITERATURE REVIEW:- The retail industry in India has undergone a rapid growth in the organized sector since theyear 2000. The organized retail sales volume in 2004-2005 had just about 2% share of thetotal retail sale. In present competitive scenario it’s very important to compete with the competitors and sustain ahead, all companies are analyzing and doing research to know andunderstand the consumer buying behavior for the same. The share of retail trade in thecountry’s gross domestic product (GDP) was 22% in the year 2010.

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3.ABSTRACT:- Present paper is a part of the doctoral research study entitled “Trends in Retail Practices and TheirImpact on Traditional Retailing-Special Reference to Bhopal City”. The paper discusses variousstudiesundertaken with respect to retailing in India. Aspects like trends, consumer perception, consumerbehavior, service quality, customer satisfaction, Indian retail market etc. are included in the paper.Various studies done by other researchers and experts are analyzed to include common aspects oforganized Vs traditional retailing. It is basically aimed at to prepare a summarized report on the studyof related literature regarding the topic. undertaken with the common aspects of retailing in India. It ishoped that the paper may act as a reference source for the researchers and the professionals.

3.LITERATURE REVIEW:- Parasuraman et al. (1980s) conducted an exploratory investigation in the attempt to define servicequality and develop a model of service quality. The results showed that regardless of the type ofservice, consumers used basically the similar criteria in evaluating service quality (Parasuraman et al.,1985). They labeled those 10 criteria as “service quality determinants”. Since then, service quality wasdefined through 10 dimensions: Access, Communication, Competence, Courtesy, Credibility,Reliability, Responsibility, security, Tangibles and Understanding/ Knowing the customer. Later, theywere simplified into five dimensions including Tangibles, Reliability, Responsiveness, Assurance andEmpathy.Dawar & Parkar (1994): Retailer’s reputation is a proxy for the retailer’s credibility and canstand for signal of quality. The use of retailer’s reputation is specific when it applies to an assortment ofproducts carried within the store. Dabholkar et al. (1996) developed Retail Service Quality Model(RSQS). Based on SERVPERF, RSQS includes 28 –item scale, of which 17 items are from

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SERVPERF and 11 items are developed by qualitative research. It composes of 5 dimensions, namelyPhysical Aspects, Reliability, Personal Interaction, Problem Solving; and Policy. Sinha & Batra (1999)also find the relationship between price consciousness and private label brand purchase to be positivebut also document that it can vary by different product categories. Shah (2001) reported that imaginethe Kerala is the home to the largest organized retail chain in the country, there is margin free market(MFM), a 160 store chain selling almost everything from electronic and electrical appliances to foodproducts, beverages, FMCG’s, stationary and goods. Das (2000) revealed that the Indian situation israther paradoxical. At $180 billion, the Indian retail business contributes 10-12% of the GDP higherthan the some western economies, where it averages 8%. It revealed that India have the world’s thickestdensity of outlets at 5.5% for every 1000 people between 12million retail stores, India’s per capita retailspace is dismissal 2 sq ft per person. Johnson (2000) reported that real estate is an issue in India, alsolabor is cheap, so getting products delivered home is a whole lot easier and he supposes the internetwill facilitate such shopping. India could actually leapfrog the west where we will probably have drivethrough shopping malls. In India, your friendly local guy will deliver the other opportunity isconvenience stores to do things that families do not have the time for, if both husband and wife areworking. Poviah and Shirali (2001) were of the viewpoint that shopping malls are classic self service4000- 20000 sq ft. stores with shopping carts, as popularized in India by crazy boys film, with typicalfocus on regular groceries, household goods and personal care products. Tesco and Nilgiris. India isnamely a groceries market and here, shopping malls have not been able to eat into the business of

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kriyana shops. While the housewife might pick up her shampoo at a shopping mall, she continues touse her local cart pusher for daily needs such as fresh vegetables. In fact, so far organized Indian__retailing has enveloped only the middle section (self esteem, social recognition) of Maslow’s pyramid.Purohit & Srivastava (2001): The retailer’s reputation is a high-scope cue for consumer to judge theproduct quality and make purchase decision. Their findings show that a low-quality brand cannotconvey improvement in product quality through a warranty unless it goes through a reputable retailer.Chandrasekhar Priya (2004) selected 10 particularly ripe areas which should be hot markets for at leastthe next several years. These comprised of China, Hong Kong, Taiwan, India etc. Shekhar M. Raj(2005) in a study found that whether the hegemony of high streets over Indian retail can continue.Glitzy malls are coming up by dozen all over the county. With their snazzy interiors, an offering that isa mix of shopping, entertainment and leisure, and facilities like packing and childcare, the malls arebeginning to pull the traffic from the traditional markets. Today we are much more comfortable withthe quality the brands are connote than the word of a shopkeeper about the quality of product. Morefamilies now prefer to shop on weekends, preferably not too far from the home and away from mddencrowds and even more madding parking attendants. So it is showing that now Indian consumer is readyfor organized retail. As the most likely time for shopping is the weekends so the families also look forsome entertainment, eating courts and recreational activities. To fulfill all these needs we have thelatest form of shopping malls where all these needs of average customer can be taken care of.

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Subhashini Kaul (2005) concluded that consumers satisfied with the store’s service quality are mostlikely to remain loyal. Service quality is being increasingly perceived as a tool to increase value for theconsumer, as a means of positioning in a competitive environment to ensure consumer satisfaction,retention and patronage. Despite its strategic importance, Indian retailers did not have an appropriateinstrument to measure service quality. This study examined the Retail Service Quality Scale (RSQS)developed in the U.S for applicability to Indian retail and the scale had been found appropriate.Rao(2006) also states that security, trust, internet speed, responsiveness significantly affect onlinepurchaser’s behavior. Thirumoorthi, P. (2006) concluded that the company must concentrate more onhigh margin to create a better performance. Importance must be given to sales promotion. The retailersmust also be asked to give more displays and discounts. Tamilarasan, R. (2007) studied in depth thevariety of store dimensions and service quality dimensions and revealed that all these dimensions haveto be of the changing and emerging retail scenario in India. 4.ABSTRACT:- Purpose of this study is to check the effect of opening of the organized retail stores onthe unorganized retail, farmers and consumer. Another objective of my study is to find that howmuch the economy of Punjab, affected by growing of retail sector. The study revealed thechanging patterns of the Indian retail industry with special reference to Punjab as well asunderstands the impact of organized retail on the consumption or shopping habits of theconsumer in the state of Punjab The scope of the study is for new retailer, who wants to invest inretail sector. This study tells them, what the growth rate of retail sector is and what is the

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perception of the consumer towards the retail store. This study helps to government, as from thisstudy govt. know the growth of retail sector and encourage the investment in this sector, whichhelps in economic growth. The data is collected through the help of questioner filled fromretailers as well as customers. The statistical tools i.e. mean median, std. deviation, regression,kurtosis, skewness used for the evaluation purpose. The study revealed that the Punjab retailsector is changing now many retail investor open their retail store and running successfully andsome other big players are ready to invest in the retail sector in Punjab and the future oforganized retail is quite good in big cities but in the cities cognized retail not successful to gainmoment.

4.LITERATURE REVIEW:- (CAIT 2007), (Deloitte- Stores Report, 2007),

(Reardon and Hopkins, 2006; Reardon and Berdegue,2007) examine the internationalization of retail sector.Global Retail Development Index (2005, 2006, and2007) studied the ranking of the countries in retailbusiness. (Mutebi, 2007) evaluates the retail sector inSoutheast Asia (Malaysia, Indonesia, and Thailand).(ICICI Property Services-Technopak Advisers Pvt. Ltd.,2007) reports shows the growth of retail in the Indiancontext.(Hu et al. 2004) examine the Chinese retailsector. Reardon et al. (2003) studied thedemand sidefactors as well the policies impact on retail. (NRFSTE,2008) report deals with the Indian small retail sectors.(KPMG2009) report studies the growth of indian retailsector. (outlook2008) report shows the impact of multibrand retailing India. (CAIT 2007) report reveals theimpact of big giants of retail on the small retailers. (Deloitte- Stores

Report, 2007). Reports revealsthat there has been a creeping internationalization of

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retailing over the recent period. As home markets havebecome crowded and with opportunities in emergingmarkets rising, modern retailers from developedcountries have been turning to new markets. On anaverage each of the top 250 retailers in the world haveoperated on an average in 5.9 countries in 2005-06(July-June) against five countries in 2000-01. (Reardonand Hopkins, 2006; Reardon and Berdegue, 2007)evaluates that the arrival of modern retail in developingcountries occurred in three successive waves The firstwave took place in the early to mid-1990s in SouthAmerica (e.g., Argentina, Brazil, and Chile), East Asiaoutside China (South Korea, Malaysia, Philippines,Thailand, and Taiwan), North-Central Europe (e.g.,Poland, Hungary, and Czech Republic) and SouthAfrica. The second wave happened during the mid tolate 1990s in Mexico, Central America (e.g., Ecuador,Colombia, and Guatemala), Southeast Asian countries(e.g., Indonesia), Southern-Central Europe (e.g.,Bulgaria). The third wave has just begun in the late1990s and early 2000s in parts of Africa (e.g., Kenya),some countries in Central and South America (e.g.,Nicaragua, Peru, and Bolivia), Southeast Asia (e.g.,Vietnam), China, India, and Russia. The internationalconsulting firm, A.T. Kearney, annually ranks emergingmarket economies based on more than 25macroeconomic and retail-specific variables throughtheir Global Retail Development Index (GRDI). For thelast three years (2005, 2006, and 2007) India has beenranked as number one indicating that the country is themost attractive market for global retailers to enter. Thehigh economic growth during the last few years raisingdisposable incomes rapidly, favourable demographicsplacing incomes on younger population with lessdependency, and urbanization are some of the majorfactors fueling the Indian retail market. (Mutebi, 2007).Examine that countries in Southeast Asia (Malaysia,Indonesia, and Thailand) imposed a number ofrestrictions on the growth of large retail companies

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particularly the transnational companies in contrast to afairly liberalapproach to the retail sector followed untilthe late 1990s. These restrictions involve the use of acombination of competition laws, FDI regulation, landuse restrictions (zoning laws), and limits on operatinghours. (ICICI Property Services-Technopak AdvisersPvt. Ltd., 2007) report conclude that the growth inorganized retailing in recent years can also be gaugedby the rise of shopping malls as well as the risingnumber of modern retail formats. In 1999, India had justthree shopping malls measuring less than one millionsq. ft. By the end of 2006, the country had 137shopping malls equivalent to 28 million sq. ft. The paceof construction of shopping malls is progressing rapidlyand the number of malls is expected to be about 479 bythe end of 2008 with a capacity of 126 million sq. ft.(Hu et al. 2004). Find that China ranked fourth, fifth,and third in the AT Kearney Global Retail DevelopmentIndex in 2005, 2006, and 2007, respectively, and is afascinating case of extremely rapid supermarketdiffusion. Modern retail in China comprises roughly 10per cent of the national retail and 30 per cent of urbanfood markets.

5.ABSTRACT:- Retailers pursue different kinds of strategies to attract customers towards their outlets. But, only some retailerscan be successful in having a strong pull for its customers. The present study aims at identifying the factorsresponsible in contributing to the better performance of some pharmacy stores, especially the unorganizedpharmacy stores. The variables chosen for the study are the outcome of an initial pilot study, where the customerswere asked open ended questions to gather reasons for their patronage towards the pharmacy stores. Thesevariables have been subjected to factor analysis and the resultant factors have been termed as the strategiesadopted by the successful pharmacy stores. The results show that there are seven major strategies adopted by the

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successful pharmacy retailers.5.LITERATURE REVIEW:- The Indian retail sector is highly fragmented, consistingpredominantly of small, independent, owner-managed shops.The unorganised sector has not lost its glory due to entry oforganised sector. It has rather gained in terms of business as theoverall retail economy is growing. It has also gained in terms ofits quality enhancement due to competition given by organisedsector. Small retailers have adopted the policy of extendingmore credit to customers to attract and retain customers. Theyhave become competitive by adopting improved businesspractices & technology up-gradation (Joseph, Soundararajan, Gupta, & Sahu, 2008).Today's world is filled with savvy consumers. Their remarkableblend of excitement and skepticism leaves many businessowners wondering. It takes more than great products to keepthe customers coming back. Shop keepers must consider whatthey can do to differentiate their business from all the othersthat offer the same services or products. The differentiatormust be the level of service, the unique experience that isoffered to customers. This holds true even for critical productcategories like medicines. Customers can get the requiredproduct (desired drug) from several stores, but even then theymostly prefer patronizing the same medical store from wherethey usually purchase. It was found that a majority ofcustomers mostly preferred to buy medicines always from thesame medical store vis-à-vis patronizing a variety of stores andthey tend to re-patronize medical stores that are situated at 0 to3 km from their residence or workplace, reflecting thatlocational convenience plays a significant role in determiningpreference for and re-patronage of a medical store (Tripathi,2009).The study also examined the importance of familiarity (with astore) in rationalizing buyer behaviour with reference tomedicines. The respondents had accorded the highest priorityto the personal relationship that they enjoyed with the storemanager and the pleasant behaviour displayed by him indetermining patronage of a medical store. In case ofspecialized, sensitive products like medicines, reliability of the

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store will play a major role in determining customer loyalty andre-patronage. If the store wants to be successful, it must build atruly sincere brand, with the objective of creating long-termmutually beneficial relationships with its customers. (Tripathi). , 2009).

6.ABSTRACT:- The Indian retail industry is the fifth largest in the world. With a population of 108 billion andgrowing at 1.6% p. a, the retail sector in India has a huge growth potential to become one of the leading retailmarkets of the world. With a young demographic profile, increasing consumer aspirations and advent of dualincome families, the retail landscape is undergoing a level of transformation. The sector which was initiallydominated by highly decentralized unorganized retailers, with the demographic and psychographic changes,is becoming centralized and organized as well. Food dominates the shopping basket in India, accounting foralmost 76% of the spending; while it is only 9.7% in the U.S and 15% in Japan and UK. Out of the total 76%,only 1% of this market is in the organized sector and the remaining is in the unorganized sector. Thisresearch study aims at finding out the customer preferences towards the organized and unorganized withspecial reference to fresh groceries. An attempt has been made to identify factors that influence customerpreferences towards the organized and the unorganized retailers. A Z-test is used to test the preference, if anyof the customer towards the organized sector. The findings of the study do note a change in customerpreferences while shopping for fresh groceries between the unorganized or organized retail outlets on factorssuch as cleanliness, home delivery, credit facilities, display, etc. However, one of the interesting finding ofthis study is that the customer is indifferent on his preference between the two sectors on the level of prices.The findings of this study may provide useful insights to researchers for further research and to retailers ofboth the organized and unorganized sectors on how to overhaul their business in order to achieve coexistence.

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6.LITERATURE REVIEW:- The discussion on whether the unorganized retailers will be ousted by the organized retailers has been inpublic domain for the last few years. A number of studies have been carried out in this area. With theopening up of FDI in multi-brand retailing, there is a definite need to understand the status of theunorganized retailers over the organized retailers, especially when big foreign retailers like Wal-Mart, Tescoand Carrefour are waiting to enter the retail scene in India.The organized and the unorganized retail would certainly coexist. The multiple needs and utilityfunctions among the socio-economic classes would ensure both the organized and the unorganized to coexistprimarily in the food sector [1]. However, another study states that organized and unorganized are bound notonly to coexist but also achieve rapid and sustained growth in years to come [2]. The unorganized retailersdo well on the location or the placement; however they suffer on the aspects such as cleanliness, quality ofgoods, offers made and of course helpful trustworthy sales personnel. The converse is true for the organizedretailers [3]. The arrival of the big retailers has had an impact on small grocers, but the neighborhood storesstill show growing sales, although at a much lower rate than the modern trade [4]. The traditional retailersneed to work out a strategy to retain their customers by providing quality goods and services; and theyshould also go for collaborations at the regional level, then only they can survive to win in this globallycompetitive environment [5]. The organized retailers are developing deeper insights into customer needs andare developing innovative models that are more tailored and personalized experience for their customers,thus working towards customer- centric shopping experience. Greater the differentiation is amongcompetitors, greater the success.

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7.ABSTRACT:- The Indian retail industry has grown 10.6% between 2010 and 2012 and is poised to increase to 750 to 850 billion USD by 2015. Retail industry is a flourishingsector of the country and encompasses activities from sourcing, SCM ,Inventory management, merchandise management, store management, HRM, ERM, ERP,sales promotion, advertisement, CRM and after-sales service. The organized retail constitutes 8% of the total retail market and is expected to grow at 20% by2020. It is likely to greatly impact businessmen, entrepreneurs, investors and to a great extent the real estate sector. There is great hue and cry that FDI will toa great extent make the small retailers shut the business and opt for alternate employment. The paper focuses on the impact of organized retail on theunorganized sector in Indian retail market.

7.LITERATURE REVIEW:- According to Delloitte Report Jan 2013- Indian Retail Report Opening more doors, the Indian retail industry has grown 10.6% between 2010 and 2012 andorganized retail constitutes 8% of the total retail industry with 92% constituting the unorganized retail. The Indian retail is divided into 2 categories- organizedand unorganized retail. Organized retail refers to trading activities by licensed retailers , who are registered for sales tax, income tax and includes retail chainsand large privately owned retail businesses. On the other hand, unorganized retail constitutes the traditional formats of low cost retailing, convenience stores ,hardware shop at the corner of the street selling everything from bathroom fittings to paints and small construction tools , mom and pop shops, local kiranashops, pan and beedi shops, hand cart and pavement vendors and street hawkers. 8.ABSTRACT:- The present research is taken up to study the consumers’ experience and perception in organized and unorganized retail settings while buying fresh produce in 7P’s Framework in Bangalore.. Most of the respondents rate their experience to be excellent or very good particularly with respect to product range, quality and freshness of goods at organized retail outlets. However on the parameters of product freshness, availability of seasonal fruits and handling returns and exchanges, unorganized traders score better. Some respondents feel that the grievance redressal procedures and systems are not quite customer friendly, and need to be redesigned in the larger formats. Majority of the respondents agree or strongly agree to the statements that FDI in retail is very much useful to the consumers and the economy, expansion of organized retail

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provide better services to the consumers, and it could affect cultivation practices of firms as well, large retail firms operate with greater efficiency, and they encourage wasteful spending. Timely market information, entrepreneurial drive and business acumen will ensure success of all stakeholders in the fray, and it turns out to be a positive sum game in the ever growing market rather than zero sum game as it is apprehended.

8.LITERATURE REVIEW:- Amita Shah (2011) opine that the supporters of liberalisation often argue that if the modern food retail sector is allowed a full round of liberalisation, it may have various positive outcomes, including a reduction in prices. He raises a counter question, what if the markets, as it happens in several instances, fail to deliver on account of the structural snags that may continue to persist in a rapidly growing and yet highly segmented economy? Dhruv Grewal et al, (2009) contend that survival in today's economic climate and competitive retail environment requires more than just low prices and innovative products. To compete effectively, businesses must focus on the customer's shopping experience. Dwelling on the issue, G. Suresh, Dr. S. Krishna Murthy (2012) found that the horticulture development has increased employment and foreign exchange earnings Manju Malik (2012), attempts to determine the perception of service quality of organized retail stores and their satisfaction among 500 respondents from organized retail outlets selected from Haryana, and across various dimensions such as Product aspects, Price aspect, Physical aspect, Promotional schemes, and Personnel Interaction and After Sales Services. Across the sub-dimensions of service quality of organized retail stores, the respondents' level of perception and satisfaction in terms of Product aspects, Price aspect, Physical aspect, Promotional schemes, Personnel Interaction and after sales services was "good”. Nityanand Singh and Prachee Javadekar (2011) observe that the supply-chain management of perishable food products is a very typical issue, which is to be adequately managed to gain the competitive advantage for optimum profit in the current scenario. Kamaladevi B (2010) contends that increased FDI inflows to a country can create several economic effects. Among others, FDI can affect labour and capital markets, trade patterns and economic growth. Ruchi Malik (2012) found that though there are multitudinous opportunities that are untapped by the retailers, they can be successful by paying more attention towards their customer needs and desires. Shankar Gopalakrishnan and Priya Sreenivasa, (2009) cautions that rather than being a panacea for Indian agriculture, corporate food provision will likely

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accelerate many key elements of India’s agricultural crisis. It will produce a decline in land productivity, reduce food security, adversely affect price stability and will tend to negatively impact employment and credit relations.

9.ABSTRACT:- This present study is an attempt to understand the relationship between the choice of retail formats,based on products attributes, store attributes, consumers’ demography and retail marketing strategies.The outcome of the study reveals that consumers’ choice for modern retail formats vary as their income levelincreases. Young consumers’ are more inclined to shop from modern retail formats as compared to older ones.Consumers’ prefer modern retail formats due to its significant product attributes like improved quality, varietyof brands and assortment of merchandise and store attributes like parking facility, trained sales personnel andcomplete security. The retention strategies, promotional strategies, growth and improvement strategies, pricingstrategies and competitive strategies are the major contributors for the growth of organized retailing and playan important role in enhancing the sales of retail formats. Further, the study helps in designing a framework forchoice of modern retail formats from Consumers’ and Retailers’ Perspective.

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