S. P.

MANDALI’S

PRIN L. N. WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &

RESEARCH, BENGALURU

SUMMER INTERNSHIP RESEARCH PROJECT (SIRP)

ON

Understanding Consumer Behavior in

purchasing laptop (Retail Vs E-Commerce)

BY

Vipul Gadhe 2022 – 24 PGDM Research & Business Analytics

TRIMESTER IV

SPECIALISATION: Operations Management

ROLL NO : 39

1
 CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

1. This is to certify that Mr. Vipul Gadhe a student of S. P. Mandali’s Prin L. N. Welingkar
Institute of Management Development & Research, Bengaluru and pursuing two years full
time Post Graduate Diploma in Management PGDM Research and Business Analytics
underwent SIRP with me.

During the SIRP, Mr. Vipul Gadhe has successfully completed the project titled “Understanding
Consumer behavior in purchasing laptop (Retail Vs E-commerce) ”
2. under the guidance of prof. Tripti Mahara

3. The student’s performance during the SIRP and comments on his/her project work are as
under:

……………………………………………………………………………………………………

……………………………………………………………………………………………………

……………………………………………………………………………………………………

……………………………………………………………………………………………………
_

______________________________________
(Name & Signature of THE FACULTY MENTOR)

Name: Prof. Tripti Mahara

Designation: Professor

Date: ……………………………………………

2
 NO PLAGIARISM DECLARATION BY THE STUDENT

I, the undersigned, hereby declare that the project titled “Understanding Consumer behavior in
purchasing laptop (Retail Vs E-commerce) ”
(a) Has been prepared by me towards the partial fulfilment for the award of Post Graduate
Diploma in Management PGDM - Research and Business Analytics (under the guidance of prof
Tripti Mahara),
S. P. Mandali’s Prin. L. N. Welingkar Institute of Management Development and Research,
Bengaluru.
(b) This work is original and has not been submitted for any degree/diploma in this or any
other Institute/Organization.
(c) The information furnished in this dissertation is genuine and original to the best of my
knowledge and belief.
(d) I have not indulged in plagiarism. The project report has been checked for plagiarism and
output report has been attached.

Student Name : Vipul Gadhe Student Signature

Place: Bengaluru Date:

3
 Acknowledgment

I would like to express my heartfelt appreciation to my faculty mentor, Prof Tripti Mahara, for
allowing me to work on this project and for providing invaluable guidance throughout this
internship. His dynamism, vision, sincerity, and motivation have all left a lasting impression on
me. Working under his supervision was a great privilege and honor. I am grateful for everything
he has done for me.

I am grateful to him for believing in me and for his ongoing support and encouragement. His
advice assisted me in giving this project a final shape. I'd also like to thank my Dean, Dr.
Madhavi Lokhande and Program Head Dr. Madhumita Majumder Guha, for providing me with
this opportunity and guiding me through the process, as well as our faculty for their knowledge
and experience.

I would also like to acknowledge my parents and friends for their motivation and guidance
throughout my summer internship research program

4
 INDEX

SR.NO PARTICULARS PAGE

. NO.
1. INTRODUCTION 6 -7

2. EXECUTIVE SUMMARY 8

3. LITERATURE REVIEW 9

4. DATA GATHERING 10

4. OBJECTIVE and ANALYSIS 11-17

5. SWOT ANALYSIS 18 -19

7. ROOT CAUSE ANALYSIS 20 - 24

8. NEGATIVE TO POSITIVE 25

9. RECOMMENDATIONS 26 - 28

10. MAJOR OUTCOMES OF PROJECT 29

11. CONCLUSION 30

12. APPENDIX 31- 32

5
 Introduction :

“Understanding Consumer behavior in purchasing laptop (Retail Vs E-commerce) ”

and the factors shaping the decision of buying behavior, we must first understand how the
retail sector is in India and what it accounts for in the Indian economy.
The retail sector accounts for around 10 percent of India’s GDP and has a share of 8 percent
in employment.

An essential part of trade, the retail sector connects producers and customers to enable the
exchange of goods and services. Retail has a crucial role in influencing market trends,
customer behavior, and economic growth. It is characterized by a broad landscape that
includes physical stores, online platforms, and a combination of both.

The fundamental tenets of merchandising, marketing, and consumer involvement guide the
retail sector. In order to meet the preferences and demands of a customer base that is
becoming more diversified, retailers carefully curate a range of goods, from necessities to
luxury goods. These products are offered through a variety of channels, reflecting the
changing buying interests and behaviors of consumers. These channels range from
conventional brick-and-mortar stores to cutting-edge e-commerce platforms.

The retail sector has been greatly altered by technological improvements in recent years.
Platforms for e-commerce have evolved rapidly, providing unmatched convenience and
global accessibility. Additionally, data-driven insights and artificial intelligence are altering
marketing tactics, enabling businesses to better customize customer experiences and
anticipate their needs.

Physical retail locations continue to be relevant despite the digital revolution by providing
immersive, tangible experiences that online channels cannot match. In order to deliver value
beyond simple transactions, retailers constantly innovate to create memorable in-store
experiences. They do this through integrating technology, interactive displays, and improved
customer service.

6
As consumers expect transparency, eco-friendly procedures, and socially responsible
sourcing, sustainability and ethical considerations are also influencing the retail sector.
Retailers are progressively integrating these principles into their business practices, which
has a positive impact on the environment and the way people shop.

The retail industry encounters both opportunities and problems in this dynamic environment.
Retailers must be flexible and resilient in the face of changing consumer preferences, supply
chain interruptions, and economic uncertainties. However, by employing creative
approaches, embracing digital change, and cultivating deep relationships with customers,
these difficulties can be overcome with the possibility of growth.

Although the retail sector is always changing, it nonetheless plays a crucial role in
contemporary society by bringing together producers and consumers in a dynamic exchange
that promotes economic growth, determines cultural trends, and defines how people interact
with the marketplace.

7
EXECUTIVE SUMMARY :

With a focus on laptop purchases, this executive summary explores the subtleties of
consumer behavior in the context of retail and e-commerce contexts. Understanding how
customers use these various platforms can offer useful insights for businesses and marketers
as the retail landscape continues to change as e-commerce grows.

Consumer purchasing decisions for laptops show interesting trends in the world of retail and
online commerce. Consumers are affected by a variety of aspects that are particular to each
channel. In retail, the actuality of the goods enables tactile exploration and instant
enjoyment. On the other hand, e-commerce provides the advantage of tailored algorithm-
driven recommendations along with the convenience of exploring a broad selection of
options from the comfort of one's location.

Consumer behavior frequently relies around a multimodal experience in retail settings.

Customers may examine laptops up close, judge the quality of the construction, and get
prompt advice from skilled staff. The tangible nature of the goods encourages trust in the
decision to buy while also fostering an emotional connection.

E-commerce platforms, on the other hand, profit from accessibility, choice, and pricing
transparency. Consumers are able to quickly and easily compare features and costs to make
well-informed purchases. Confidence is greatly increased by online reviews and ratings, and
the purchasing experience is improved by personalized recommendations based on browsing
history and preferences.

There are, however, some difficulties unique to each channel. Because of the physical space
constraints in retail, it may be difficult to find specific laptop models, which could frustrate
customers looking for particular features. Contrarily, e-commerce encounters difficulties
because it is unable to physically inspect things before buying them, which can raise
questions about the fit or quality of the item.

Individual tastes, buying patterns, and the importance attached to elements like immediacy,
engagement, and convenience all have a significant impact on the decision between retail
and e-commerce. For businesses to provide a seamless shopping experience that caters to a
variety of customer tastes, there must be a synergy between these two channels.

Businesses must use the advantages of both retail and e-commerce to succeed in this
cutthroat environment. Customers' loyalty may be increased and laptop sales can be
successfully driven across both channels by delivering in-store experiences that appeal to
customers' emotions as well as powerful online platforms with in-depth product information,
user reviews, and helpful customer care.

8
LITERATURE REVIEW :

Consumer behavior research that compares retail and e-commerce offers important insights
into how people choose what to buy, the factors that shape their decisions, and the changing
dynamics of these two different channels of distribution. The important findings from
previous studies and research articles are summarized in this review, giving light on the
intricate interactions between consumer behavior, retail locations, and e-commerce
platforms.

Numerous psychological, social, cultural, and economic elements have a large role in
consumer behavior, which has many different facets. In the conventional retail setting,
customers interact physically with objects, participate in sensory experiences, and frequently
seek assistance from store employees. The capacity to touch, feel, and try things as well as
their tangibility are important factors in the decision-making process. Studies have shown,
the tactile character of retail spaces encourages emotional bonds and trust, which results in
higher levels of customer pleasure and loyalty.

On the other hand, the growth of e-commerce has changed the way people shop and added
new dimensions to consumer behavior. The ease of internet purchasing, the variety of
options, and the capability to compare features and pricing in real-time have completely
changed how people assess and choose products. In the absence of face-to-face encounters,
online reviews and ratings are proven to have a significant impact on consumer choice,
giving social validation and fostering trust.

The use of smartphones and mobile devices has further altered customer behavior,
obfuscating the distinction between traditional retail and online shopping. Nowadays,
consumers showroom, meaning they look at things in real stores and then buy them online to
benefit from lower prices. On the other hand, webrooming entails doing product research
online, buying the items in-person, and then completing the transaction.

Modern consumer behavior is driven by the fusion of retail and e-commerce. The
omnichannel shopping phenomena highlights the significance of delivering a smooth
experience across many touchpoints, enabling customers to switch between online and
offline platforms without difficulty. This integration necessitates a consistent approach that
takes into account consumers' desires for both convenience and individualized service.

Virtual reality (VR) and augmented reality (AR) technologies are being investigated as
methods to improve consumer experiences as a result of the digital transformation of the
retail landscape. These technologies bridge the gap between the convenience of online
shopping and the tactile essence of traditional retail by allowing customers to virtually
interact with things prior to making a purchase.

In conclusion, the difference between consumer behavior in brick-and-mortar stores versus

online retailers is a dynamic area that represents shifting consumer preferences, technology
development, and shifting buying habits. The research emphasizes how important it is to

9
comprehend consumer preferences, motivations, and decision-making processes in various
circumstances. Businesses can modify their strategy to create engaging shopping experiences
that appeal to a variety of consumer categories by utilizing knowledge from both retail and
e-commerce.

OBJECTIVE and ANALYSIS :

Objective :

Tracking dynamic Consumer behavior and their purchase patterns w.r.t laptop buying
behavior across different channels. The retail industry has been one of the mega sectors
contributing to India’s GDP growth, a major element of the retail industry i.e local retailers
(brick and mortar ) have seen a red alert coming to themselves as we are able to see a dip in
there businesses from last few years due to dynamic growth of e-commerce and also the
acgiant retailers like Reliance, Croma. In this research, we would be identifying the root
cause along with some highly impactful solutions for the local retailers in order to make
them strong to hold their positions firmly in the retail sector as we know the local retailer is
considered to be one of the important factors in the smooth running of our economy, as we
can see a good amount of cash-flow.

Data Collection :

The distribution of a comprehensive questionnaire led to the development of data collection

for comprehending consumer purchasing behavior in the context of retail and e-commerce.
This approach was chosen because it is effective at getting insightful information directly
from customers. A variety of thoughtfully constructed questions that probed different facets
of purchasing choices in both conventional retail and digital e-commerce settings made up
the questionnaire.

The purpose of the survey was to identify the critical variables influencing consumers'
preferences and decisions regarding retail and e-commerce platforms. It aimed to
comprehend how their choices were influenced by convenience, cost, product variety, and
overall shopping experience. Specific questions focused on the factors driving the rise in
popularity of online shopping and the perceived benefits of each method of shopping. The
survey also investigated worries regarding with data security, product quality, and customer
service, all of which are crucial for gaining the trust and loyalty of customers.

10
Participants were asked to rate how satisfied they were with their experiences shopping in
stores and online and to identify any areas that needed improvement. With the use of open-
ended questions, this method not only made it easier to analyze the responses quantitatively
but also gave participants the chance to elaborate on their thoughts and experiences.

The study was able to gain a comprehensive understanding of how consumer behavior is
changing in the fast-changing retail environment by using this questionnaire-based data
collection technique. The data gathered gave useful insights into the factors influencing
consumers' purchasing decisions, their problems, and the opportunities businesses can use to
improve customer experiences in both retail and other industries.

Data Analysis :

We used a variety of analytical tools to glean insights from data on consumer behavior
during the data analysis phase. We used text analytics in JMP to find patterns in open-ended
responses, which revealed qualitative insights. We evaluated the strengths, weaknesses,
opportunities, and threats in the contexts of both retail and e-commerce using a SWOT
analysis, which helped us formulate strategic recommendations.

Root-cause analysis enabled targeted solutions by identifying the fundamental forces that
underlie consumer preferences. To encourage creative thinking, we used a novel strategy to
turn negative points into positive ones. To better communicate insights, visual tools were
used, such as word clouds for qualitative themes and pie/bar charts for quantitative data.

Together, these methods gave us the ability to thoroughly analyze data, reveal important
insights, and create well-informed strategies to satisfy consumer preferences in both the
retail and e-commerce landscapes.

11
Charts :

The insightful pie chart provides a visual breakdown of consumer preferences regarding
shopping methods. Remarkably, 40% of respondents show a distinct inclination towards
online purchases, reflecting the growing influence of digital platforms. Meanwhile,
traditional retail retains a dominant position, capturing the larger share of 60%

12
Within the 60% majority favoring traditional retail, a significant pattern emerges. Notably,
60% of this group opt for the convenience and offerings of giant retail chains, while the
remaining 40% lean towards local retailers

The survey results reveal a compelling trend among respondents, with a notable 72%
indicating a strong inclination towards personal references as a trustworthy determinant in

13
their laptop purchasing choices. Interestingly, the impact of digital marketing through
platforms such as YouTube and reviews stands out, surpassing the influence of conventional
word-of-mouth promotion by an impressive margin of 2.5. This insight sheds light on the
evolving dynamics of consumer decision-making, underscoring the growing significance of
online platforms as sources of information and endorsement in the modern marketplace.

Limited Discounts and promotions, and difficulty in finding unique product account for a
majority of factors that are found to issue with consumers buying at local retailer.
Among the factors, Lack of product knowledge and information at local retailers and also the
lack of online presence (i.e. not having an omnichannel presence) were issues with buying at
local retail stores.

14
Word Cloud :

In the survey we did have some of the open-ended questions , in order to know
how the consumers looks on to some situations or what he feels in a particular
situation. So, from their comments on couple of important questions we have
got some keywords as we have created a word cloud out of it using JMP tool

Q1] What are the reasons for buying from Reliance/Croma and not from local
retailers or Vice – Versa?

With the help of JMP, we did text analytics on the responses that we received as
recommendations and after analysis, we got some powerful keywords in the form of word
cloud. So, some of the keywords that occurred many a time were Service, Local, Better,
Good, Trust, Offers, and some others too. Of these keywords, one thing that we can derive is
the positive notion of the respondents towards buying from a retailer which operates offline.
Thus positivity is reflecting here.

15
 • Q2] What according to you is the issue with buying a laptop online? (mention
your points)

Here too, we did the same thing i.e. creating a word cloud using JMP which helps in
recognizing the nature of responses that we have received. So the primary factors were the
issues that the consumers face while making the decision to purchase a laptop online. So,
from the keywords here we can highlight some of them which are Trust, Risk, Quality, Feel,
Damage, Authentic, and some others. So, by analyzing them all, local retailers can make
more effective use of these opportunities and implement some strategies to improve on these
points in order to face the stiff competition against online giants.

16
SWOT ANALYSIS :

STRENGTH WEAKNESS

• Physical Experience Limited Reach

• Personalized Customer Service Higher Overheads

• Local Presence Limited Operating Hours

• Immediate Gratification Inventory Management

OPPORTUNITY THREAT
YYY

Omnichannel Strategy E-commerce Competition

Experience Enhancement Changing Consumer Behavior

Localized Marketing Limited Presence over various channels

Loyalty Programs Payment mode discounts available

17
 The comprehensive SWOT analysis of the retail landscape highlights the intricate interplay
of strengths, weaknesses, opportunities, and threats that shape the industry's trajectory.
Retail businesses leverage tangible, sensory-rich physical experiences, personalized
customer service, and local presence as key strengths. Notably, immediate gratification
offered by brick-and-mortar stores adds to their appeal. However, these strengths are
counterbalanced by constraints like limited reach compared to digital platforms, higher
operational costs, operating hour limitations, and the ongoing challenge of effective
inventory management.

Amidst these challenges, retail businesses can capitalize on promising opportunities. The
adoption of omnichannel strategies holds potential to cater to evolving customer preferences
and enrich overall experiences. Localized marketing and loyalty programs further enhance
prospects for fostering customer loyalty.

Nonetheless, the retail sector faces distinct threats. Competition from e-commerce is
intensifying, driven by digital advantages and shifting consumer preferences. Adaptation to
changing consumer behavior and expanding digital presence across multiple channels are
essential for mitigating these threats. The appeal of online payment mode discounts poses a
unique challenge to traditional retail.

Strategically navigating this landscape requires leveraging strengths, addressing

weaknesses, capitalizing on opportunities, and mitigating threats. Seizing opportunities
through omnichannel strategies, experience enhancement, and loyalty programs can fuel
growth, while responding to e-commerce competition and adapting to changing consumer
behaviors is crucial. The importance of strategic alignment and creative adaptation for
thriving in the changing retail landscape is highlighted by this SWOT analysis's conclusion,
which emphasizes the complex dynamics of retail businesses.

18
Root Cause Analysis :

Problem statement: Due to e-commerce competition, local retailers have low

market share and sales.

Effect: Low Market Share and Sales

Low Market Share and Sales as an effect can Cause:

• reduced revenue
• decreasing customer traffic
• diminishing client loyalty

Low market share and slow sales have ramifications that span several dimensions and have
the potential to seriously disrupt a company's operations. The immediate decrease in revenue
is one of the main effects, which compromises financial stability and limits the ability to
invest in important areas like innovation and expansion. Additionally, declining revenue is
frequently exacerbated by declining customer traffic, which reflects a decline in brand
recognition.

The decline in customer loyalty, which is a result of unfulfilled expectations and unpleasant
experiences, is equally alarming. Due to the perceived decline in value, devoted customers—
who typically make a significant contribution to a company's revenue and serve as brand
ambassadors—may begin looking for alternatives. This decline in customer loyalty has a
deeper impact on revenues and market share

The interconnectedness of these effects emphasizes the urgent requirement for preventive
action to change the downward trend. Businesses must concentrate not only on regaining
customer trust through improved products and experiences, but also on creating successful
marketing plans to rekindle consumer interest in their brands. Companies can open the door
for new growth and stability by taking on these challenges head-on, highlighting the

19
significance of a comprehensive strategy that includes product improvement, customer
engagement, and strategic planning.

Main Causes :

Products and Services offering :

• limited choice of products

• poor product quality
• unreasonable pricing

Products and services are the foundation of any company's success because they ensure
client satisfaction and brand loyalty. However, when a business only offers a small selection
of products, it severely limits the options for customers and may cause dissatisfaction.
Customers value variety and customized services, so a small selection may make them look
for alternatives elsewhere.

Poor product quality is equally harmful because it undermines consumer confidence and
tarnishes brand reputation. Not only do inferior products fall short of customer expectations,
but they also hurt a company's long-term prospects by attracting unfavorable reviews and
word-of-mouth, which discourages potential customers.

Pricing that is unreasonable has negative consequences as well. Pricing is crucial in

determining how customers perceive value, and exorbitant costs can drive away price-
sensitive customers and make it more difficult for them to make purchases. Furthermore,
exorbitant pricing can cause consumers to associate the brand negatively, leading them to
believe the business is exploitative rather than customer-centric.

Businesses must prioritize product diversification to cater to a range of preferences and make
sure that their offerings are in line with customer needs in order to mitigate these issues.
Mechanisms for quality control are necessary to uphold uniform product standards, foster
customer satisfaction, and grow trust. The value proposition of the product should be

20
carefully considered when developing pricing strategies to reflect that value while
maintaining market competition.

In conclusion, a well-rounded approach to products and services is crucial for a business to

succeed. Offering a wide selection of products,
maintaing quality standards and having a policy of fair pricing practising proves to be
important factors in increasing customer loyalty and maintaing brand's reputation for
sustaining in a long-term game.

Client/Customer Experience :

• Inadequate online presence

• Poor in-store customer service
• Lack of seamless online shopping experience

The success of a business is largely dependent on the client/customer experience. A weak

online presence hinders digital engagement and loses crucial chances for connection. Poor
in-store service is also harmful because it turns away potential customers in addition to
generating bad reviews. An effortless online shopping experience is the pinnacle of e-
commerce. Cart abandonment and revenue loss are caused by complicated and laborious
processes.

Businesses must take strategic action to strengthen these components. It is crucial to increase
online visibility through interesting content and intuitive design. Customer satisfaction and
brand loyalty can be increased by spending money on staff training to provide flawless in-
store service. Additionally, by streamlining the entire online shopping process from
browsing to checkout, obstacles are removed and conversions are boosted.

In essence, giving the client/customer experience priority is crucial. Together, a strong

online presence, excellent in-store service, and a simple online shopping experience improve
customer satisfaction and boost brand perception. Businesses that adopt these measures are
better positioned for resilience and prosperity in the face of fierce competition.

21
Competitive Market :

• tough internet rivalry

• insufficient marketing initiatives
• ineffective marketing techniques

Businesses are compelled to engage in a constant battle with tenacious internet rivalry in the
context of a cutthroat market. Companies must compete not only with their immediate
industry competitors but also with the vast array of online distractions vying for customers'
attention because the digital sphere serves as the primary arena for consumer engagement.
This environment demands a multifaceted strategy that goes beyond an online presence in
order to survive and thrive.

One issue is brought on by insufficient marketing efforts that fall flat with the target
audience. Businesses must create engaging narratives and targeted campaigns in an
information-overflowing environment to pique consumer interest. If you don't make strategic
marketing efforts, you risk being overshadowed by competitors who take more initiative.
Additionally, the success of marketing strategies is crucial. Using out-of-date or ineffective
tactics can cause diminishing returns because efforts don't produce the desired results.
Businesses that embrace innovation, use data-driven insights, and customize their marketing
strategies to customer preferences, on the other hand, can gain a competitive edge, fostering
engagement and brand loyalty in a crowded and fiercely competitive market.

Technological Factors:

• Outdated point-of-sale systems

• Lack of user-friendly e-commerce platform
• Insufficient online and offline system integration

It is impossible to understate the impact of out-of-date point-of-sale (POS) systems in today's

business environment. Businesses that rely on antiquated POS systems run the risk of being
inefficient, frustrating customers, and missing out on opportunities as technology advances
at an exponential rate. These antiquated systems impede not only the checkout process but
also the ability of businesses to collect crucial customer data, impeding personalized services
and targeted advertising initiatives. Adopting contemporary, streamlined POS solutions is

22
essential for optimizing operations, improving customer experiences, and remaining flexible
to ever-changing customer expectations if you want to succeed in the cutthroat market.

The importance of a user-friendly e-commerce platform cannot be overstated at the same

time. Businesses must make sure their digital storefronts are responsive and logical as online
shopping becomes more common.

High bounce rates, abandoned shopping carts, and ultimately lost revenue can all be caused
by poor user experience. The difficulty is exacerbated further by a lack of integration
between online and offline systems. Customers may become dissatisfied and stop interacting
with the brand further if they have an inconsistent experience across these channels. On the
other hand, seamless integration allows for seamless changes between online and offline
interactions, resulting in a cohesive experience that fosters customer loyalty and increases
revenue potential.

In conclusion, businesses that want to succeed in the cutthroat business environment must
prioritize user-friendly e-commerce platforms, modernize point-of-sale systems, and achieve
robust online-offline system integration. Companies can provide exceptional customer
experiences, increase operational efficiency, and position themselves for success by
embracing technological advancements and coordinating their digital and physical channels.

Consumer Behavior:

• internet buying becoming more popular with consumers

• Increase in operating speed and ease in use of it

With the rise of online shopping, consumer behavior is undergoing a profound change.
Consumers are increasingly using online platforms for their shopping needs as technology
becomes more pervasive in daily life. Internet shopping's accessibility and convenience have
changed how people make purchases. This trend is being driven by things like how
convenient it is to shop from anywhere, how simple it is to compare prices and products, and
how many more options are available. Businesses are therefore changing their tactics to meet
the needs of online shoppers and making sure that their goods and services are accessible
through user-friendly e-commerce platforms.

The improvement in the usability and operating speed of internet platforms has further sped
up this evolution in consumer behavior. Consumers can browse, choose, and buy products
quickly with faster and more dependable internet connections, creating a seamless and
effective shopping experience. Consumer expectations have changed in favor of instant
gratification as a result of the ease of use and the speed of transactions. Businesses can
benefit from this trend by increasing customer satisfaction and fostering brand loyalty by

23
placing a high priority on website responsiveness, streamlined checkout procedures, and
engaging user interfaces. Businesses must comprehend these changes in consumer behavior
in the digital age and adapt if they want to stay competitive and relevant in the marketplace.

NEGATIVE POSITIVE :

Converting the negative points into positive points to increase the efficiency of the local
retailer. First list down both the positive as well as negative points of local retailers, and then
from the insights that are being data-driven, we will try to give suggestions and the idea of
implementing them into the current business scenario

Local Retailer
Negative Positive

• Lacks in omnichannel presence Trust Factor

• No technological advancement Community Connection

• Not defined customer retention strategy Physical presence

• High Inventory cost Immense Gratification

• Payment mode discounts available

• Loyalty programs

24
Recommendations :

• Lacks in omnichannel presence :

A local retailer can start by developing a user-friendly e-commerce website that

showcases their products and enables customers to make purchases online in order to
address the lack of an omnichannel presence. Customers would be able to browse and
purchase goods from the convenience of their homes while still patronizing the
neighborhood shop thanks to this. Additionally, implementing a "click and collect"
option could encourage customers to visit the physical store for pick-up while still
enabling the convenience of online shopping, promoting a seamless integration of both
channels.

• Lack of technological advancement :

A local retailer can start by implementing fundamental technologies, such as point-of-

sale systems and developing an online presence, to address the lack of technological
advancement. For efficient operations, they should offer staff training and look into slow
technology upgrades. They can successfully adopt technology and grow their business by
consulting with technology experts, working with tech-savvy partners, and encouraging
adaptability.

• Local retailers can do the following to improve customer retention:

There are a number of successful strategies that stand out when pursuing the development of
strong customer relationships. Businesses can target their efforts to particular preferences
and needs by segmenting their customer base, increasing engagement and satisfaction.
Introducing a loyalty program with rewards encourages brand loyalty and offers a reason for
recurring purchases. Customer satisfaction increases when communication tactics are
personalized based on prior interactions. Encouragement of post-purchase feedback
demonstrates a dedication to improvement and a respect for customer opinions. Providing

25
unexpected benefits to customers delights them and deepens the relationship. A constant line
of communication is ensured by channels for engagement feedback and exclusive events that
further reward loyalty. In the end, these tactics work together to create a satisfying customer
experience, ensuring that the journey is not only profitable but also enjoyable.

• High Inventory cost :

Data-driven demand forecasting and just-in-time ordering are essential to efficient business
operations because they help to maximize inventory. Resource allocation is improved by
strengthened supplier terms and software-driven inventory management. Promotions and
package deals can increase sales, and a wide range of products can attract more customers.
Regular audits and return policies that are friendly to customers keep things moving. In
dynamic markets, this all-encompassing strategy ensures profitability and competitiveness.

• Payment mode discounts available

Businesses can use a number of solutions to effectively leverage the potential of payment
mode discounts. First, providing a range of payment options—including credit cards, mobile
wallets, and online banking—meets the preferences of various clientele. To ensure that
customers are aware of their options, it is essential to communicate clearly about the
discounts that are offered for particular payment methods at the point of purchase. Customer
satisfaction is also increased by streamlining the payment process using safe and user-
friendly interfaces. Customers are kept informed and interested by routine updates and
promotion of these discounts through various marketing channels. In conclusion, businesses
can effectively attract and retain customers by maximizing the impact of payment mode
discounts by embracing a variety of payment methods, transparently promoting discounts,
streamlining payment procedures, and upholding constant communication.

26
 • Loyalty programs

Implementing a successful loyalty program for a local retailer involves several

strategic steps. First, the retailer should design a straightforward and rewarding
points-based system where customers earn points with every purchase. These
points can then be redeemed for discounts, free products, or exclusive offers.
Second, personalized rewards based on customer preferences and buying
behavior can enhance engagement. Third, incorporating a tiered system with
increasing benefits for higher spending levels encourages customers to aim for
greater rewards. Fourth, engaging communication through email or mobile

notifications should keep customers informed about their points, rewards, and
upcoming promotions. Lastly, integrating the loyalty program with the retailer's
social media or app can foster a sense of community and offer additional
rewards for sharing or referring friends. In conclusion, a well-executed loyalty
program can not only boost customer retention and engagement but also
establish a strong brand-customer relationship, fostering long-term success for
the local retailer.

27
Summarized Insights from the study:

• Online retail commands a 40% market share, with the remaining 60% distributed as
follows: 60% is attributed to major retailers, while local retailers account for the
remaining 40%.

• 72% of respondents prefer personal recommendations when deciding to buy a laptop.

• YouTube and reviews are 2.5x more effective than word-of-mouth marketing.

• Key factors driving consumers to shift to online shopping: discounts, convenience,

research ease, reviews, wide selection, and awareness of local retailers' limitations.

• An impressive 95% of online consumers are satisfied, largely attributed to a range of

benefits such as loyalty points, programs, and personalized discounts.

• About 66% of online buyers' preference for online shopping changes based on costs,
especially for higher-priced products.

• 70% of online buyers feel that local stores lack sufficient discounts, promotions,
unique products, and product knowledge expertise.

• 75% of consumers find after-sales service important and might switch to offline
shopping if their in-store experience improves.

• Deficiencies in personalized discounts and loyalty programs.

• Enhance retail store promotion with these strategies:

• Utilize social media and digital marketing.
• Provide a seamless omnichannel experience.
• Conduct product demonstrations and trials.
• Deliver personalized customer service.

• 70% of online buyers seek confidence in local retailers through an online presence,
addressing convenience concerns arising from limited visibility.

28
Conclusion:

Traditional retail has its advantages, disadvantages, opportunities, and difficulties in the
ever-changing business world. All of these factors influence how this industry might develop
in the future. A unique way to connect consumers with things is through traditional retail,
which delivers a tangible experience. This may help you stand out from other internet
retailers. Traditional retail may continue to exist while the internet world expands by
focusing on creating exciting and individualized shopping experiences.

But there are also problems. While conversing with real people might be pleasant, when you
only focus on one region, expansion is difficult. Keeping a store open can be expensive due
to factors like rent and labor. Additionally, having limited hours of operation in a dynamic
world can be problematic.

The traditional retail industry has the potential to adapt in the midst of these difficulties.
Customers may find it easier if online and in-store shopping are combined. Shopping may be
made more enjoyable by adding unique displays and events to establishments. Additionally,
concentrating on what locals enjoy and participating in the community can be quite
beneficial. Rewarding loyal consumers with loyalty programs helps keep them coming back.

However, there are also risks. People appreciate online retailers because they are so simple
to use. Traditional stores may find it difficult as a result. Changing consumer behavior can
be detrimental to traditional retail. People might not want to spend as much if the economy is
bad. Laws that change can also create uncertainty.

In the end, traditional retail has advantages it can use to overcome its difficulties. It can use
the opportunities to combine online and offline shopping, improve stores, and engage the
neighborhood to become better. But it's not simple; there are significant issues to solve as
well. How traditional retail responds to each of these issues will determine how it evolves
and how important it becomes to how consumers shop in a digital world.

29
APPENDIX :

Questions :

• Have you ever purchased a computer/Laptop?

• Do you want to buy a laptop in the next 6 months?

• What makes your buying decision the most preferable? – (Ads/personal

Reference/Friends & Family/YouTube reviews)

• Where did you or would you like to buy it from?

• What made you buy a laptop online?

• Would your preference Change if the cost of goods you buy is high? (e.g.- for a
laptop of more than 1lac would you choose online or offline)

• From whom would you prefer to purchase the laptop from?

• What are the reasons for buying from Reliance/Croma and not from local retailers?

• What were the important points considered for buying from retail?

• What do you think retail should improve on?

• Any other recommendation to promote retail stores for the top preference of
consumers?

• Does the after-sales service factor prohibit you from buying online?

• Are you satisfied with the experience of buying online?

• What are the reasons for buying from Reliance/Croma and not from local retailers or
Vice – Versa?

30
 • What according to you is the issue with buying a laptop online? (mention your
points)

References :

https://www.worldwidejournals.com/indian-journal-of-applied-research-
(IJAR)/recent_issues_pdf/2015/April/April_2015_1428502066__261.pdf

primary_responses.xlsx

https://www.indiaretailing.com

https://www.magestore.com/blog

31