International Journal of Management (IJM)

Volume 11, Issue 10, October 2020, pp. 2128-2138. Article ID: IJM_11_10_203
Available online at https://iaeme.com/Home/issue/IJM?Volume=11&Issue=10
Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.11.10.2020.203

© IAEME Publication Scopus Indexed

A STUDY ON CUSTOMER PERCEPTION ON

ORGANIZED RETAIL STORES IN
TIRUCHIRAPPALLI TOWN
Dr. M. Usharani1 and Dr. R. Gopinath2
1
Head and Assistant Professor, PG and Research Department of Commerce,
Srimad Andavan Arts and Science College (Autonomous), Tiruchirappalli, Tamil Nadu, India
2
D.Litt. (Business Administration)- Researcher, Madurai Kamaraj University,
Madurai, Tamil Nadu, India

ABSTRACT
Background: The research study is concentrated on the customer reliability of
organized retail stores in Tiruchirappalli Town. Retailing occupies a key role in our
economy development of country and as well as in modern societies. We are placing
good position in the organized retail sector. Today, organized retail stores occupy a
prominent role in our economic development. Reliability is otherwise stated as loyalty,
which is being a powerful tool in the market structure. Customer reliability indicates
the progress status of the retail stores. Every organized retail store has to capture the
reliability of the customer for their keep going process in the business. Customer is
being a stem of the market.
Objectives: Hence, the researcher attempted to study the customer reliability of
organized retail stores, which is essential their marketing survival and as well as to get
aware of retail trends towards organized retail stores in Tiruchirappalli.
Methodology: The study comprises has Tiruchirappalli is a center of Tamil Nadu
as well as developing city of our country. In this case, 300 respondents have taken for
the research study and the research tools of chi-square test and one-way ANOVA have
also used to know the influential factors, loyalty and expectation level of the customers
towards organized retail stores in Tiruchirappalli Town.
Findings and Suggestions: Certain factors found to have considerable influence
preference of retail stores. Similarly age, educational qualification and gender of the
respondents are also found to have considerable influence on reasons for purchasing
in retail stores.

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 A Study on Customer Perception on Organized Retail Stores in Tiruchirappalli Town

Key words: Retailing, Customer Reliability and Organized Retail Stores.

Cite this Article: M. Usharani and R. Gopinath, A Study on Customer Perception on
Organized Retail Stores in Tiruchirappalli Town, International Journal of Management
(IJM), 11(10), 2020, pp 2128-2138.
https://iaeme.com/Home/issue/IJM?Volume=11&Issue=10

1. INTRODUCTION
Customer is an emperor of the business. Customer reliability induces the level of the customer
satisfaction towards the business. Hence, every business concern is taking steps to create loyalty
towards customers. Organized Retail store is also using this tool to capture the reliability of the
customer. A department store is an organized retail establishment which offers a wide range of
consumer goods in different product categories known as "departments". In modern major
cities, the department store made a dramatic appearance in the middle of the 19th century, and
permanently reshaped shopping habits, and the definition of service and luxury. Department
stores today have sections that sell the following: clothing, furniture, home appliances, toys,
cosmetics, gardening, toiletries, sporting goods, do it yourself, paint, and hardware and
additionally select other lines of products such as food, books, jewelry, electronics, stationery,
photographic equipment, baby products, and products for pets. Customers check out near the
front of the store or, alternatively, at sales counters within each department. Some are part of a
retail chain of many stores, while others may be independent retailers (Gopinath, 2019 b). In
the 1970s, they came under heavy pressure from discounters. Since 2010, they have come under
even heavier pressure from online stores such as Amazon.
Organized retail stores affect their surrounding culture, both positively and negatively as
do shopping malls and chain stores. However, the stores themselves have also been affected by
changes in society. As both the external technology and the social aspects of the retail business
continue to make advances, the role of department stores, if any, in future society will be
determined by how they adjust to these changes.

1.1. History and Evolution of Retail Stores

Retail as an organized industry really began in the 18th and 19th centuries with the rise of urban
covered markets, specialty shops, and department stores. Catalogs brought the opportunity to
shop without leaving the home for the first time in the late 1800’s. Montgomery Ward allowed
shoppers to mail in written orders through their mail-order catalogs, and the invention of the
telephone empowered quicker impulse shopping, as customers could call in orders when their
catalogs arrived. As E-Commerce grew in the early 2000’s, retail wars pitted brick and mortar
shops against online retailers, but that battle has long-since ended, as most major retailers now
employ cross-channel retail strategies to reach customers both online and in physical stores. In
fact, it’s developed to the point where consumers no longer perceive a distinction between
online and offline shopping. Shopping has become ubiquitous, and people are able to use mobile
phones to complete transactions in the moment, whenever they’re inspired to make a purchase.
With product information and reviews now available online, shopper attitudes have
morphed dramatically. No longer dependent on salespeople and catalog writers for information,
shoppers now know as much as, or even more than retail salespeople (Gopinath, 2019 c).
What’s more, retailers can now customize their product offerings based on the knowledge of a
customer’s location and mobile device. This context allows merchants to provide offers that are
best suited to the customer where they are in the moment. Retailers who create cross-channel
retail strategies to harness this data effectively are able to deliver relevant suggestions and
capture sales at the moment of intent.

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 M. Usharani and R. Gopinath

One challenge for online retailers has always been the divide between the visual experience
of viewing a product online, and the full sensory immersion that a store can provide. Customers
still shop both in-store and online, and even if they use the internet for researching and
comparing prices, they still want the experience of touching and trying on a physical product
(Gopinath & Irismargaret, 2011). Retail evolution is leading to an increase in the use of
technologies like augmented reality, interactive video, 360 views, and gestural controls to bring
products to life on shoppers’ screens, and this will only grow in the future. Shoppers will now
be able to scan their TV screens to access product pages and make purchases on their mobile
devices. This adds a whole other layer to the Omni channel experience, with new opportunities
for synergy between media and retail.

1.2. How to Create Customer’s Reliability?

No issue the size of the business, customer is incredibly important. Repeat customers spend up
to 67 percent more than new customers. Plus, it’s up to ten times more expensive to try to attract
new customers than it is to keep the ones already doing business with you. If you’re looking for
real ways to create and keep up customer loyalty, consider implementing a few of these
strategies.

1.2.1. Set up ways to communicate with your customers

Frequent communication with your customers keeps you fresh in their minds and lets you pass
along important information. Take the time to set up a database with contact information such
as email addresses, mailing addresses, or phone numbers. Then you can send friendly
reminders, birthday greetings, or a monthly newsletter.
Social media is another great way to communicate with your customers on an almost daily
basis. Keep in mind that this works better if you limit how many of your communications are
actually advertisements. Don’t forget to throw in messages that are either fun reminders or
useful information.

1.2.2. Provide extra perks for your most loyal customers

One of the best and perhaps one of the cheapest ways to reward customer loyalty is to give extra
perks to your most dependable customers. By setting up a reward system for the most loyal,
you not only encourage them to stick around, you also give an incentive for other customers to
strive to reach that status.

1.2.3. Consider different payment plans

There are some businesses out there that are very seasonal and run into cash flow issues during
certain times of the year. For instance, a wedding shop usually receives most of their sales
during the summer months when weddings are in full swing, but during the winter they struggle.
One shop decided to offer a payment plan through which customers could start shopping in the
winter, and pay a little throughout the months leading up to the wedding, rather than paying all
at once.
This plan worked because it helped customers by giving them manageable monthly
payments, and it helped the company by bringing in cash during an otherwise slow time of year.
In fact, customers were so happy that they often referred the shop to others, and the business
saw a nearly 400 percent increase in total sales.

1.2.4. Provide great customer service

While this seems like a given, its one tip that bears repeating because it’s so important. One
survey showed that in 2013, 51 percent of customers ended their relationship with a

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 A Study on Customer Perception on Organized Retail Stores in Tiruchirappalli Town

business because they were unhappy with the service they were receiving. Customers remember
when they’re treated well, and they remember when they’re treated poorly. In either case, they
usually tell their friends and family, and that can either mean more business for you or lost
business opportunities.

1.2.5. Don’t rely too much on technology

Even in our technologically advanced society filled with text messages and emails, we still want
the ability to interact with other human beings. Everyone can relate to the frustration of feeling
stuck in an endless loop of automated prompts until we bang on the phone keys in hopes of
reaching a real human. This is why it’s important to keep in mind that while automated phone
systems may save money, highly trained customer service representatives build loyalty.

1.2.6. Offer a head start

If you want to start a customer loyalty program like coffee shops use, whereby customers buy
a certain number of drinks to earn a free one, consider giving them a head start. This can be as
simple as giving them the first two punches on the coffee card for free. If you give your
customers a head start on the program, they’re more likely to stick around and finish it.

1.2.7. Don’t forget to smile

This is another item that seems obvious, but it’s important enough to keep being reminded of.
A study in the United Kingdom recorded the expressions used to greet customers as they entered
a store, and then cross-checked with how much they spent in the store. The study showed that
shoppers who were greeted with a welcome and a smile spent up to 67 percent more than
shoppers who were not greeted this way. While it seems like a small detail, a friendly greeting
obviously has important consequences.

1.2.8. Give customers a reason to be loyal

Many people believe that Apple has some of the most loyal fans out there. Customers go to
great lengths to prove just how much they love the company, with bumper stickers, tattoos, and
vehement arguments in favor of all the products. Recently, neuroscientists scanned the brains
of Apple fans and learned that the same part of the brain that lights up when religious people
think about their deity is activated when these customers think about their beloved products.
This shows that if you offer a service or product that your customers think is the best in the
world, they’ll be completely devoted with a passion that can’t be topped.
In today’s business climate, it’s impossible to stress just how important customer loyalty is.
These tips will help you create loyal customers who will be happy to frequent your business for
many years to come.

2. REVIEW OF LITERATURE
Lau et al. (2006) have mentioned in his editorial that there are numerous factors which
influenced consumers brand loyalty towards a particular brand. The factors are; brand name,
product quality, price, promotion and service-quality. These studies will significantly look at
product quality as a feature that influences brand loyalty.
Finlay (2007) in her study on Grocery Shopping in the UK: A Study of Consumers,
examined the underlying perceptions of consumers towards grocery and shopping outlets and
found price and location as two critical factors influencing grocery outlet choice. She indicated
that consumers are rarely prepared to change their shopping patterns to access alternative outlets
for grocery purchases being habitual nature, time constraint and low cognitive processing

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 M. Usharani and R. Gopinath

characteristic. Further research is needed to consider different demographic groupings in

different localities in order to better understand the impact of limited choice in an area.
Gupta and Mittal (2011) in their study ‘Store Choice in the Emerging Indian Apparel Retail
Market: An Empirical Analysis’ investigated the evaluation of apparel store attributes by
consumers in the context of apparel retail formats in India. They suggested retailers to consider
underlying perceptions and demographic correlates of local consumers. According to them,
retailers could use Loyalty Drivers and Shopping Experience Enhancers to be integrated into
the retail format to create sustainable store choice and hence, store loyalty. Further research is
needed to carry out research for other retail sectors such as food and grocery, consumer
electronics, gifts and so on and also to investigate the influence of demographics and
psychographics on store choice and shopping orientations.
Duff (2007) in this study expressed the niche market in women’s cosmetics, and the
outcomes explored that cosmetic buyers were faltering, more fashion aware and the customers
were demanding for the products which are more attractive and new designed; furthermore,
consumers have an inclination to use special makeup designs for different occasions”.
Andotra and Pooja (2009) have explained about the usage of canonical discriminated
function, K-means clustering procedure and multidimensional scaling technique, measures the
nature and extent of customer dissonance across demographic groups, clusters, and 14 brand
stimuli for operationalization of existing pattern of preference and accordingly redesigning the
existing bundle of brand stimuli for strategic orientation of retailers selling SSI products.
Lovelock (2010) indicated that store’s environment is also one of the features that might
play a vital role in consumer’s decision-making. On the other hand there are some of features
that influence the customer assessment and satisfaction with a specific brand. The
characteristics are shoppers, salespeople, store environment, noises, smells, temperature, and
displays, symbols, colors and commodities.
Jain Susmit (2011) explained that consumer decision processes depend on the consumer
behavior. Consumers are often studied because certain decisions are significantly affected by
their behavior or expected actions. The research focuses on examining the impact of Jaipur
consumers „demographic variables in various types of organized food and grocery retail
formats (convenient, supermarket, and hypermarket) and exploring the drivers of customer
satisfaction and loyalty in Jaipur retail supermarkets.
Srivastava (2012) research project deals with the marketing strategies that are to be followed
by retailers in the retail stores located in malls. The purpose of the study is to learn about the
customer profiling and learning, the market placement of MAX as a brand and various
competitors existing in the market. The effect of customers and the competitors on the
marketing strategies adopted by the store has been studied. Further, the study deals with the
various marketing strategies adopted by these retail stores which includes, tie-ups with other
brands, mall branding and other promotional offers to attract he customers and improve the
competitiveness.
Gopinath and Kalpana (2011) have conducted a Study of Select Discount Store Retail for
the purpose of identifying factors in regards to Shopping Motives. The researchers are also
found that, availability of discount, proximity of the store, range of products available, customer
treatment and grievances handling are some considerable factors during the time of choosing
the retail stores.

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 A Study on Customer Perception on Organized Retail Stores in Tiruchirappalli Town

3. STATEMENT OF THE PROBLEM

The present study has covered the title of “A Study on Customer Reliability of Organized Retail
Stores in Tiruchirappalli Town” is an attempt to understand the various factors influencing to
retain the customer’s reliability towards organized retail stores. A perfect parity between the
services offered by sellers and the services expected by the buyers is vital to make the
transaction smooth and hassle-free. Nowadays, the luxuries goods become necessary by the
evaluation of marketing. Hence the retailers have to take necessary steps to meet out the
competency level of the market. Always they have to aware about the customer’s needs, wants
and desires of them to retain the loyalty towards you.

3.1. Scope of the Study

This study covers the organized retail stores in Tiruchirappalli in town for knowing customer’s
reliability. Three organized retail stores have taken for the research study in the name of the
stores Femina Shopping Mall, Kavery super market and Reliance Super market. The scope of
the study has framed with 300 respondents to known the reliability of them towards retail stores.
The study has concentrated on primary sources of the data. It is indirectly consisted the
perception, satisfaction, and various influencing factors to frame the objectives of the study.

3.2. Objectives of the Study

To find out the factors determining the preference of retail stores
To study the reasons for purchasing in retail stores

3.3. Research Methodology

Convenient sampling technique of non-probability sampling was used to select the sample form
the population. The researcher used structured questionnaire for collecting the primary data.
The data were collected from the 300 respondents in the selected retail stores (Femina shopping
Mall, Kavery super market and D- Mart) who are coming to these stores for purchasing the
products in the research area.

Primary Data
Primary data were collected through structured questionnaire. Questionnaires were distributed
to the respondents directly. From the answered questionnaires, the conceptual of the
respondents were ascertained.

Secondary Data
Secondary data based upon the second hand information. In this study, secondary sources of
information were collected from websites, Magazines, Text books, Newspapers, Journals, and
Websites etc.

Tools used in the study

Chi-Square Test and One Way ANOVA

3.4. Limitation of the Study

• Few respondents were reluctant to provide the answer and lack interest.
• The study was limited within selected organized retail stores only.
• The research study has concentrated on the Tiruchirappalli town only.

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 M. Usharani and R. Gopinath

4. ANALYSIS AND INTERPRETATION

4.1. Factors Determining the Customers Preference on Organized Retail Stores
Null Hypothesis
There is no significant association between various factors and customers preference on
departmental stores

Table 1 Anova-Factors Determining the Customers Preference of Organized Retail Stores

Sum of Mean
Variables Factors Df. F Sig.
Squares Square
Between Groups 189.335 3 63.112
Opinion about lighting Within Groups 65.051 296 0.220 287.175 0.001**
Total 254.387 299
Between Groups 95.718 3 31.906
Ventilation Within Groups 931.828 296 3.148 10.135 0.001**
Total 1027.547 299
Between Groups 138.122 3 46.041
Power Within Groups 112.714 296 0.381 120.908 0.001**
Total 250.837 299
Between Groups 169.387 3 56.462
Protected Drinking
Within Groups 71.200 296 0.241 234.732 0.001**
Water
Total 240.587 299
Between Groups 175.002 3 58.334
Cleanliness and
Within Groups 90.678 296 0.306 190.419 0.001**
Hygienic toilets
Total 265.680 299
Between Groups 195.500 3 65.167
Clear Product
Within Groups 84.487 296 0.285 228.311 0.001**
Information
Total 279.987 299
Customer Between Groups 167.143 3 55.714
Classification and Within Groups 93.054 296 .314 177.224 0.001**
Treatment Total 260.197 299
Techniques for Between Groups 175.002 3 58.334
receiving customer Within Groups 90.678 296 0.306 190.419 0.001**
into the shop Total 265.680 299
Between Groups 173.079 3 57.693
Handling customer
Within Groups 97.838 296 0.331 174.545 0.001**
grievances
Total 270.917 299
Between Groups 149.200 3 49.733
Efficient Staff Within Groups 107.120 296 0.362 137.426 0.001**
Total 256.320 299
** @ 1 per cent level of Significance

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 A Study on Customer Perception on Organized Retail Stores in Tiruchirappalli Town

Inference
Table 1 the p value explaining the association between various factors and preference of
departmental stores is less than 0.01. Hence we failed to reject the null hypothesis at 1 per cent
level of significant. Further the result explains a significant association between foresaid factors
and the customer’s preference on departmental stores. Kavitha & Gopinath (2020) inferred that
Perception of Internet Banking users Service Quality.

4.2. Association Between Age and Reasons for Purchasing Products in Organised
Retail Stores
Null Hypothesis
There is no significant relationship between the age of the respondent and reasons for
purchasing products in organized retail stores.

Table 2 Chi-Square results Explaining the Relationship between age and Reasons for Purchasing
Products in Organised Retail Stores
Reasons for purchasing products in organized retail
Chi-
stores
Total Square P value
Age Time Fashion Chea
Convenience Quality value
saving /Trend p
Upto 20 years 72 0 0 0 0 72
21-40 years 3 46 85 34 0 168
41-60 years 0 0 0 44 0 44 6.595 0.001**
Above 61 years 0 0 0 3 13 16
Total 75 46 85 81 13 300
** @ 1 per cent level of significance

Inference
Table elucidates the association between age of the respondent and the reasons for purchasing
products at organized retail stores. The p value is less than 0.01; therefore the null hypothesis
is rejected at 1 per cent level of significance and prominent association was found between the
age of the respondent and the reasons for purchasing in retail stores. Usharani & Gopinath
(2020) confirmed that Consumer Behaviour on Green Marketing with reference to Organic
Food Products.

4.3. Association Between Gender and Reasons for Purchasing Products in

Organised Retail Stores
Null Hypothesis
There is no significant relationship between the gender of the respondent and reasons for
purchasing products in organized retail stores

Table 3 Chi-Square Test Explaining the Relationship Between Gender and Reasons for Purchasing
Products in Organised Retail Stores
Reasons for purchasing products in organized retail
Chi-
stores
Gender Total Square P- value
Time Fashion
Convenience Quality Cheap value
saving /Trend
Male 43 23 25 22 34 147
Female 13 31 22 48 39 153 10.595 0.001**
Total 56 54 47 70 73 300
** @ 1 per cent level of Significance

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 M. Usharani and R. Gopinath

Findings
Table 3 depicts the relationship between gender of the respondent and the reasons for preferring
retail stores. Since the p-value is less than 0.01 the null hypothesis assuming no relationship is
rejected at 1 per cent level of significance. Henceforth the researcher found noteworthy
association between gender and the reasons for preferring retail stores. The study of Gopinath
(2011) also found that male is giving more preference to convenience rather than other factors.

4.4. Association Between Educational Qualification and Reasons for Purchasing

Products in organized Retail Stores
Null Hypothesis
There is no significant relationship between the educational qualification of the respondent and
reasons for purchasing products in organized retail stores.

Table 4 Chi-Square Test Explaining the Relationship Between Educational Qualification and Reasons
for Purchasing Products in Organized Retail Stores
Reasons for purchasing products in organized retail
Chi-
Educational stores
Total Square P-value
Qualification Qualit Time Fashion
Convenience Cheap value
y saving /Trend
Up to School 13 7 5 5 12 42
Diploma 3 4 0 0 6 13
Under
41 24 25 12 23 125
Graduate 16.125 0.001**
Post Graduate 12 10 6 22 37 87
Professionals 5 4 0 15 9 33
Total 74 49 36 54 87 300
** @ 1 per cent level of Significance

Inference
Table 4 states the relationship between educational qualification of the respondent and the
reasons for purchasing products in organized retail stores. The p-value is less than 0.01,
therefore the null hypothesis is rejected at 1 per cent level of significance and there is a
relationship between the foresaid factors.

5. FINDINGS
The factors like lightings, ventilation, power, drinking water, Cleanliness and Hygienic toilets,
Clear Product Information, customer treatment, grievances handling are certain factors which
determines the reasons behind the choice of retail stores. Apart from this age, gender and
qualification of the respondents has significant influence on the range of reasons for visiting
organized retail stores.

6. SUGGESTIONS
• The organized retail stores have to arrange enough facilities children and the aged
people above 50 years in the research area (Gopinath, 2019 d).
• Most of the retail stores have to fail to cover the male respondents. This one is also
absent in these stores. They may have to take necessary steps to attract the male
respondents. The same was insisted by Gopinath (2019 a).

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 A Study on Customer Perception on Organized Retail Stores in Tiruchirappalli Town

• From the research, it was found that most of the respondents visit the department stores
as leisure centre to relax, So the stores have to be followed various sales promotion
techniques to increase the sale volume of the business.
• Some of the respondents are getting fear to purchase the health care products,
vegetables, and fruits from the organized retail stores. It will be let out from the mind
of the respondents.
• ATM facility can also be provided to the customer within the campus of the organized
retail stores.
• Recreation amenities can be extended to obtain the reliability of the customers.
• Safe guard service should be properly maintained in the retail stores.
• To avoid the skimming price policy in the preliminary stage of the service.

7. CONCLUSION
To withstand the competition the retail stores must know the reasons behind the choice of retail
stores and must provide those facilities to attract the customers. Apart from these, the purpose
of visiting the retail stores varies according to age, gender and educational qualification and
that has to be considered to gain the market share.
The success of retail sector reveals the growth of the organized retail stores. The rapidly
increasing the expectation of the customer in different manner. Everyone knows that reliability
of customers is the reflection of trust. Normally if we want to get the loyalty of the customers,
we have to fulfill the needs, wants, demand and expectations of the customers. The retail
business also has to follow the same sense of service to obtain the reliability of the customers.
The organized retail stores have need to be updated their products and services in the nature
manner and also take the necessary steps to remove the outdated products. The penetration
pricing strategy can be considered to attract the urban customer as well as rural customer also.
If the service is followed in the right manner customer may tend to stay on the department stores
themselves.

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