Customer shopping behaviour in organised retailing scenario

Abstract

The growing Indian retail market has attracted a number of foreign retailers and domestic corporates to invest in this sector. But the entry of foreign retailers is currently restricted by the Indian Government for protecting the large segment of domestic retailers. Before these restrictions are lifted there exists an opportunity for Indian retailers to equip themselves in facing competition from foreign players. The need to understand how customers shop and address their expectations on par with foreign retailers is the key for Indian retailers to compete strongly with foreign retailers. offers a more pleasant shopping experience, this fosters a good mood, resulting in greater spending. Apart from store choice factors, store atmospherics, as they impact on perceptions of shopping as a fun and enjoyable experience, are an important strategic tool in proper management for competitive advantage. Thus, in terms of modern retail context, the purpose of current research is to gain an insight into the formation of store satisfaction and loyalty. This importance of gaining a better understanding of loyalty is underscored by the impact of retail sector on the Indian economy. This research proposes to test theoretical loyalty framework by employing the Stimulus-Organism-Response (SOR) model to explore store To test the conceptual model, 611 responses on convenience basis are collected using a survey questionnaire. Preliminary analyses resulted in reliability and validity of the data. Data were analysed using structural equation modeling approach vi for refinement and testing of the study model. Several hypotheses examining the effects of store atmospheric elements on customers affective evaluations and cognitive evaluations, which in turn effect store satisfaction and store loyalty, were found to be significant as proposed except for a few which were not significant. The acceptable model fit of the proposed research model and the variances explained by independent variables in dependent variables suggested that the model