PERCEPTION OF UNORGANIZED RETAILERS TOWARDS B2B ......Unorganized retail – It consists of...

PERCEPTION OF UNORGANIZED RETAILERS TOWARDS

B2B WHOLESALERS -METRO AND BEST PRICE

DR. D.PRASANNA KUMAR

Associate Professor, K L U Business School,

Guntur, Andhra Pradesh, India

K. VENKATESWARA RAJU

Research Scholar, K L U Business School, Guntur,

Andhra Pradesh, India

ABSTRACT

Keywords: Trust, Consumer perception, Brands, B2B markets, Industrial Brand Equity, Service

Introduction

The Indian retail sector is witnessing tremendous growth with the changing demographics and an

increase in the quality of life of urban people. Retail Sector is the most booming sector in the Indian economy.

Effective pricing tactics are the most effective competitive behavior for small merchants in hostile

environments. Satisfying selective markets appeared to be the most effective competitive behavior. With the

entry of big players like Wal-Mart and Metro, the B2B segment has shown positive trends in the recent times.

Our modern world is very complex, and so is the business world. There are many things that influence the

behavior of the consumer. These influences can be religion, ethnic group, social class, age, gender, values, etc.

But what is even more important than the different stimuli itself is how consumers perceive, process, interpret

and store the stimuli. This work will describe what perception is, how consumers perceive and how this

scheme can be used by marketers.

“If you do not measure it, then you cannot manage it!”

At the beginning of the 21st century it is widely accepted that existing Customer Relationship

Management (CRM) solutions have much room for improvement. Consumer is the one who buys a product or

service and uses its complete benefits by consumption. Resealing of products or services is not the duty of a

consumer. Exhibiting behavior by consumer while knowing, evaluating and purchasing a product in general

we call it as consumer behavior. The major factors that affect the consumer behavior are geographical,

demographical, psychological and behavioral. B2B model also known as Business to Business model is the

one whose consumers and sellers are business units.

International & Indian retail sector is witnessing one of the most hectic Marketing activities of all

times. The companies are fighting to win the hearts of consumer who is God said by the business tycoons.

There is always a ‘first mover advantage’ in an upcoming sector. In India, that advantage goes to “Wal-Mart

& Metro”. It has brought about many changes in the buying habits of people. It has created formats, which

provide all items under one roof at low rates, or so it claims. In this project, we will study the perception of

consumers regarding the success of Wal-Mart & Metro.

This research makes an attempt to study and analyze the exhibiting behavior of consumers especially

in B2B model. Cost, exploitation and productivity play vital role in B2B consumers. Business to business

model is the one whose sellers and buyers are business units. In today’s rapidly changing competitive

environment, service firms are quickly discovering that far greater profits are yielded from harvesting existing

accounts than from cultivating new customers.

Industry profile: Retail industry can be classified into two broad categories – organized retail and

unorganized retail.

Organized retail - Those traders/retailers who are licensed for trading activities and registered to pay taxes to

the government

In the competitive world Customers & Consumers are treated to be most important to the

Business Organization. If the consumers are satisfied with their service and their quality of products

provided by the Wholesale Stores, then that experience would help the organization to become market

leader. The study is conducted to know perception and awareness of local unorganized retailers towards

modern wholesalers like Best Price & Metro with a sample size of 110. This study deals with the B2B

business of unorganized retailers with Best Price. The main objective of this research is to know the

factors that an unorganized retailer considers before choosing wholesalers. The major factors to be

identified are quality, low price, trust on wholesaler, and on time delivery. The purpose of this thesis is

to specify and test factors surrounding trusting relationships between buyers and suppliers in a global,

business-to-business services context. It also focuses on perception of retailer with reference to Best

Price & Metro and considers factors like location, timing, and availability of variety of products.

Unorganized retail – It consists of unauthorized small shops - conventional kirana shops, general stores, corner

shops among various other small retail outlets - but remain to be the radiating force of Indian retail industry.

According to AT Kearney, The Windows of Opportunity shows that Retailing in India was at opening stage in

1995 and now it is in peaking stage in 2006. India is the most compelling opportunity for retailers, because

now India is in peaking stage.

This window of opportunity is useful for executives who plan their market-specific strategies the four stages

are as follows:

Opening:

An opening market is one that is just entering the GRDI, which is, in this stage all, which are outside

the top 30 markets, falls in this stage. At this stage, retailers should monitor and performing high-level

assessments, they should plan for their entry strategies. India in the late 1990's is a good example in the

opening stage, while in 2006; Kazakhstan is the country in opening stage.

Peaking:

In peaking stage, the market is developing quickly and also ready for modern retailing. Countries,

which are in Peaking stage, are India, Ukraine and Vietnam. Retailers entering this stage have the best chance

for long-term success. Retailers at this stage should enter through local representations, sourcing offices and

new stores. Wal-Mart success in china in the late 1990's and early 2000's gives us the importance of

committing to a promising high-growth market at right time.

Declining:

In this stage the market is still big and growing, but the space for new entrants will become tighter

and retailers should act quickly at this stage because retailers at this stage have limited time to explore, and

also their margin for error is thin. In general, they should act according to the established rules and should be

open to face the competition from international retailers.

Closing:

The window of opportunity is closing fast and modern retail share is reaching 40 to 60 per cent.

Though the opportunity is closing the existing retailers can enter with new formats such as discount models or

non-food formats such as consumer electronics and apparel. Window of opportunity ends for about 5 to 10

years before a market enters the closing phase and reaches saturation level. India for example, was in the

opening stage in 1995 and entered peaking stage in the year 2003 and reached number 1 rank in2005.

Bharti Wal-Mart Private Limited

Bharti Wal-Mart Private Limited is a business-to-business (B2B) joint venture between Bharti

Enterprises and Wal-Mart for wholesale cash-and-carry and back-end supply chain management operations in

India to serve small retailers, manufacturers and farmers. The joint venture (JV) has already set up a

Distribution Centre in Punjab which will partly service the merchandise needs of the JV’s cash-and-carry

stores as well as retail stores around the area, including Bharti Retail’s wholly owned Easy Day stores. The JV

launched its first B2B wholesale cash-and-carry store in Amritsar in May 2009. A typical cash-and-carry store

will stand between 50,000 and 100,000 square feet and sell a wide range of fresh, frozen and chilled foods,

fruits and vegetables, dry groceries, personal and home care, hotel and restaurant supplies, clothing, office

supplies and other general merchandise items. The JV is expected to open 10 to 15 wholesale cash-and-carry

facilities and employ approximately 5,000 people over the next three years.

Generating Local Employment:

As part of its pledge to make a meaningful difference to the communities it serves, Bharti Wal-Mart

is committed to generating employment opportunities for the local youth. Over 180 candidates trained at the

Bharti Wal-Mart Training Centre, India’s first special skills training centre launched by Bharti Wal-Mart in a

public-private partnership with the Government of Punjab, have already been recruited in Amritsar. The

Training Centre which offers 100% scholarship to all enrolled candidates, aims at bridging the shortage of

skilled workers for cash-and-carry and organized retail formats, thereby creating employment opportunities for

the youth.

METRO:

METRO Cash & Carry is different from B2C retail chains (such as Wal-Mart, Carrefour or Tesco) in

that its business concept is targeted towards professional customers rather than end consumers. The cash-and-

carry concept is based around self-service and bulk buying. METRO Cash & Carry serves to registered

customers only. Core customer groups are hotels, restaurants, caterers, traders and other business

professionals.

The first METRO Cash & Carry wholesale center in India opened in Bangalore in 2003. Currently

there are 15 wholesale centers in operation, including two in Bangalore and two in Hyderabad of which one

was opened on 30 November 2006. The first Mumbai store was opened in 2008 at Bhandup. The Kolkata store

located at Kalikapur, EM Bypass was opened in 2008. A Metro Cash & Carry store was opened at Ludhiana

city in Punjab in the first week of September 2011, located on the Jallandhar Bypass road. The second store in

Mumbai was opened on 17 November 2011, near Western Express Highway, Borivli (E). In the beginning of

2012 Metro opened 2 more stores in northern India including one in New Delhi and another in the City of

Jaipur, with plans to open more.

Importance of wholesale in retail sector

Wholesaler may be defined as the middlemen who operate between the producers (from whom they

purchase goods) and the retailers (to whom they sell goods). Wholesaler refers to any individual or business

firm selling goods in relatively large quantities to buyers (retailers) other than the ultimate consumers. Thus

the manufacturers who sell their products directly to retailers may also be regarded as wholesalers. The

specialized knowledge and skill of wholesalers increases the efficiency of the distribution network. The

wholesalers provide important services and solve the problems of both the manufacturers and the retailers.

Services provided by the wholesalers to the retailers:-

They act as the retailers 'buying agent' and saves them from the trouble of searching out and assembling

goods from several manufacturers.

They inform the retailers about the new products, its uses and changes in their prices. They also assist the

retailers in advertising and selling of the products.

They provide financial assistance to retailers, sell goods on credit to retailers and thus help them to operate

with small working capital.

A wholesaler being the ware-house keeper of the market, they protect the retailers from the risk of loss

arising from holding large stocks of the product.

They may also sort out different grades of products according to quality and pack the goods into small lots

for the retailers.

Literature Review

Consumer perception theory is any attempt to understand how a consumer’s perception of a product

or service influences their behavior.

B2B (Business to Business):

The exchange of services, information and/or products from one business to other, as opposed to that

is between a business and a consumer.

The study by James M. Barry & Russell Abratt (2007) states that there is an influence of trust

building behaviors (social interaction, open communications, customer orientation) and service outcomes

(technical, functional and economic quality) on trust formation. Trust is shown to have a positive influence on

key relational outcomes, loyalty commitment and share of purchases. To support the influence of trust on

loyalty commitment and expanded patronage in a B2B services setting.

In another study,the authors (“kusuml.ailawadi, jie zhang, Aradhana Krishna, and Michal.w. kruger”)

conduct a systematic examination of incumbent retailers’ reactions to a Wal-Mart entry in their local markets.

The analyses include seven Wal-Mart supercenter entries and are carried out using detailed store movement

data for 46 product categories from a large number of supermarkets, drugstores, and mass store.

In one of the article the authors (deepika jhamb, ravi kiran) said that the retail has been ascertain that

share of organized retail is increasing in India as consumers are accepting the new trends of retailing. As per

retailers’ point of view, infrastructure, economic growth and changing demographics are the most important

drivers of retail followed by increase in FDI’s and growth of real estate.

The authors(katrijn gielens, linda m.van de gucht, jan-benedict e.m.steenkamp, marnik g.dekimpe)

examined the effect of Wal-Mart’s entry into the United Kingdom on the performance of European retailers.

Drawing on the marketing, strategy, and finance literature streams, they developed hypotheses as to why some

retailers are expected to be affected differently than others. They examine these incumbents’ reactions not just

on price but also on a variety of other marketing-mix variables. More important, they link incumbent reactions

to Wal-Mart’s impact on their sales. In addition, they explore the factors that may explain differences in

reactions and sales outcomes across retail formats, stores, and categories.

Retailing is one of the largest industry in India and one of the biggest sources of employment in the

country. The results of the study depict that infrastructure, economic growth and changing demographics of

consumers are the major driver of organized retail in India. This was said by authors Deepika Jhamb ,Ravi

Kiran.

With the entrance of big giant retailer like Wal-Mart and Metro in the country what is the effect of

adjacent countries and business cycle in the country mainly focusing on Sales tax revenue, Economic growth

and to find the increase in employment and wages in retail trade sector this was discussed by Michael J. Hicks,

PhD and Kristy Wilburn. The job growth results consistent across the country where the Wal-Mart enters. The

Wal-Mart employees were paid more when compared to other retail trade employees. The location of Wal-

Mart has an additional effect which has increase in Local sales with the entry of Wal-Mart there will be impact

on employees, wages, and economy growth.

It is also said that with entrance of big Retailer in the country how the incumbent retailers’ reactions

to a big Retailer like Wal-Mart entry and the impact of these reactions on the retailers’ sales. They compile a

unique data set that consists of incumbent supermarkets, drugstores, and mass merchandisers in the vicinity of

seven Wal-Mart entries, as well as control stores not exposed to the entries this was discussed by KUSUM L.

AILAWADI, ARADHNA KRISHNA. It was said that incumbent stores’ reactions to a Wal-Mart entry into

their local markets and the consequences of these reactions for the stores’ sales outcomes how incumbents

change their pricing, promotion, and product assortment in reaction to the entry and how their sales are

affected by the entry how these reactions and sales outcomes vary across retail formats, stores, and product

categories and to see whether the incumbents’ reactions influence their sales outcomes. When the big Retailer

enters the market there is certain impact on the local Retailers and on their Sales this was discussed by

KATRIJN GIELENS and STEENKAMP. This validate the findings using three alternative measures of

company performance Percentage growth in the incumbent retailer’s sales, Earnings before interest and taxes

and Return on assets.

Conceptual Framework of Wholesale Market

Figure 2.1

B2B influencing factors: The factors that are influenced by the consumer perception are, long term relations, Quality of

service, Value add-ons, Discounts, Advertisements, Bulk of purchase, Price or Economic, Availability of

products, Trust.

Every consumer will have their own perceptions on the retail sectors.

1. Quality of Service: To distinguish themselves from competitors, retailers not only have to provide a

better service, but also measure whether consumers have a favorable evaluation of their service. “The

secret of successful retailing is to give your customers what they want. And really, if you think about

it from your point of view as a customer, you want everything: a wide assortment of good-quality

merchandise; the lowest possible prices; guaranteed satisfaction with what you buy; friendly,

knowledgeable service; convenient hours; free parking; a pleasant shopping experience.”- Sam

Walton (1918-1992).

2. Value add-ons: The enhancement a company gives its product or service before offering the product

to customers. Value added is used to describe instances where a firm takes a product that may be

considered a homogeneous product, with few differences (if any) from that of a competitor, and

provides potential customers with a feature or add-on that gives it a greater sense of value.

3. Discounts: Discounts are a specific type of marketing promotion in which you invite shoppers to

save money on specific products or product groups. Discounts are a significant part of your online

merchandising strategy. You can use discounts to introduce new products, retain existing customers,

or drive revenue growth.

4. Bulk of purchase: Bulk purchasing is a means of product procurement that involves large orders of

the same item. Bulk purchasing is very popular for businesses and among corporate players, but can

also be profitable for individuals. Bulk pricing is the reason why sets of identical items — anything

from ink pens to oranges — usually cost less than buying the same number of items individually. A

customer who can guarantee multiple sales is often rewarded with a lower price overall. The concept

applies to sales across the board, in many different market sectors.

5. Advertisements: Advertising is mass media content intended to persuade audiences of readers,

viewers or listeners to take action on products, services and ideas. Advertising is the paid,

impersonal, one-way marketing of persuasive information from an identified sponsor disseminated

through channels of mass communication to promote the adoption of goods, services or ideas.

6. Price: In general terms price is a component of an exchange or transaction that takes place between

two parties and refers to what must be given up by one party (i.e., buyer) in order to obtain something

offered by another party (i.e., seller).

7. Availability of Products: Availability is becoming an increasingly important issue for consumers

seeking convenient grocery solutions.

8. Trust: Guarantees are a great way to increase the levels of trust between you and your customers, and

give yourself a competitive advantage. A guarantee is a kind of product insurance, protecting your

customers’ investments if their shopping experience turns out to be less than satisfactory.

Geographical factors: The geographical factors are location, shelf management, display, and ambience.

1. Location: location is the place which is convenient to all the consumers for buying the product.

2. Shelf management: Achieve an organized, polished look to your retail shelves and capture your

customer’s attention every time with our wide array of shelf management products and display

accessories.

3. Display: Knowledge is power and for retailers, product knowledge can mean more sales. It is difficult to

effectively sell to a consumer if we cannot show how a particular product will address a shopper's

needs. Read on to learn some of the benefits of knowing the products you sell.

4. Ambience: arrangements of products in big malls will also affect the consumer perception that in

general we call as ambience.

Perceptual drivers: The following are the major drivers of perception. They are learning, believes, previous experience, word of

mouth.

1. Learning: Learning is the lifelong process of transforming information and experience into

knowledge, skills, behaviors, and attitudes.

2. Believes: Belief is distinct from judgment, which is a conscious mental act that involves arriving at a

conclusion about a proposition (and thus usually creating a belief). Whereas belief is the mental

attitude that some proposition is true rather than false, judgment is the evaluation of a proposition as

reasonable, fair, misleading, etc.

3. Previous experience: Based on the previous experience of the product or service his/her expectations

or the thoughts will differ.

4. Word of mouth: depending on the type of word of mouth communication perceptual levels of

individuals varies. If individual receives positive word of mouth of a product or service then he/she

make an attempt to choose and vice versa.

Outcomes:

Consumer perception will result in two types based on his positive and negative. The two outcomes are repeat

purchase and switch off.

1. Repeat purchase:

Perception is the main thing that effect on purchase. If consumer feels positive then purchase will be

repetitive. Consumer will continuously make the purchases.

2. Switch off:

For a poor perception, consumer of a business shifts to another business. This will happen in any kind of

businesses and the main reason is poor communication so avoid this kind of miss understandings.

Objectives of the Study:

1. To study the consumer perception in B2B environment.

2. To study the buyer – seller relationship for satisfaction.

3. To study buyers repurchase intentions.

Scope of Study The Inferences from the study are based on the responses given by the consumers in a specific area. This study

will be helpful in getting an insight into the perception of Consumers on Advertisements.

Research Methodology

5.1 Research design The study is based on both primary data and secondary data. The primary data was collected various

Best Price and Metro outlets in our state through structured questionnaire for which samples of 110

respondents were selected for this study. The collected samples using convenient sampling method was

validated and took it for further analysis. Secondary data is also been collected from database sites and

articles. The collected data were analyzed with the suitable tools like Chi – Square tools with the following

assumptions were made on the onset of the project.

5.2 Area of the study

The respondents are randomly selected for this study.

5.3 Research approach

Customer Survey and questionnaires method

Survey method is used for collecting data from consumers of various goods at B2B outlets. We

requested all respondents to fill in the questionnaire, by self after explaining the various aspects mentioned in

it. It contained both open and closed ended questions in a structured format very easy to understand on the first

look.

5.4 Sampling Technique

A convenient sample (non – probability sampling method) of 110 consumers was shared up for the current

study in which respondent of the study was request to complete the questionnaire on voluntary basis.

5.5 Sample Size

The Size of the sample taken in this study is 110.

5.6 Period of Study

The study was done during October 2013 to November 2013 timeline.

5.7 Data Usage:

For analysis and interpretation, only primary data is used. However for conclusion and

recommendations both primary and the secondary data along with the verbal knowledge and information

although obtained from respondents, though they are outside the parameters of questionnaire were also

included. The data collected from these sources were analyzed using various tools like percentage analysis,

chi-square test, cross table analysis method.

5.8 Research Instrument:

The data is collected by well developed, structured five point Likert Scale. All of the questionnaires

were distributed among the respondents in the defined areas. The data is collected in a period of 25 days and

the responses were analyzed using the Statistical Package for Social Science (SPSS) version 16.0 for analysis

and evaluation.

5.9 Tools:

Frequencies and cross tabulation have been calculated for the responses of the respondents. Chi –

Square test analysis was conducted on the data obtained using the questionnaire.

Analysis and Interpretation

6.1 General Profile of the Respondents

Table 6.1

Interpretation:

From the above table, we infer that 72% of the total respondents are male and 28% are female. On

further classification according to age group, we find that of all the respondents 26% are less than years old,

44% are of the age group 26-40, 19% of the age group 41-60,11% are above 60 years. From the responses

collected DISTANCE(20%),PRICING(23%),PRODUCT QUALITY(26%),WORD OF MOUTH(29%) are the

major factors influencing the selection of B2B store. Most of the respondents told that the purpose of visiting

the B2B store is BUYING (67%) and also ENQUIRY (25%).

6.2 Respondents views about Advertisements:

Table 6.2

Figure 6.3

6.4 Chi-Square Test

6.4.1. Is There a Relation between INCOME and MONTHLY PURCHASE OF THE RESPONDENT?

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

INCOME * AVGMONTHLYPURCHASE 110 100.00% 0 0.00% 110 100.00%

INCOME * AVG MONTHLY PURCHASE Crosstabulation

Count

AVGMONTHLYPURCHASE

Total 1 2 3

INCOME 1 19 17 6 42

2 16 8 8 32

3 5 6 5 16

4 7 5 8 20

Total 47 36 27 110

CHI-SQUARE:

INCOME

Observed

N

Expected

N Residual

1 42 27.5 14.5

2 32 27.5 4.5

3 16 27.5 -11.5

4 20 27.5 -7.5

Total 110

AVG MONTHLY PURCHASE

Obser

ved N

Expected

N

Residu

al

1 47 36.7 10.3

2 36 36.7 -0.7

3 27 36.7 -9.7

Total 110

Test Statistics

INCOME AVG MONTHLY PURCHASE

Chi-Square 15.236a 5.473

b

df 3 2

Asymp. Sig. 0.002 0.065

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 27.5.

From the above SPSS calculation we infer that there is a significant relation between INCOME and

MONTHLY PURCHASE OF THE RESPONDENT.

6.4.2. Is There a Relation between EDUCATION OF THE RESPONDENT and RECEPTION OF THE

STORE PERSONNEL?

EDUCATION * RECEPTION OF STORE PERSONNEL Cross tabulation

Count RECEPTIONOFSTOREPERSONNEL

1 2 3 Total

EDUCATION 1 24 16 7 47

2 12 9 6 27

3 5 5 6 16

4 5 5 10 20

Total 46 35 29 110

CHI-SQUARE:

Test Statistics

EDUCATION RECEPTION OF STORE PERSONNEL


b

df 3 2

Asymp. Sig. 0 0.132


b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 36.7.

From the above SPSS calculation we infer that there is a significant relation between EDUCATION OF THE

RESPONDENT and RECEPTION OF THE STORE PERSONNEL.

6.4.3. Is There a Relation between LOYAL MEMBERSHIP CARD HOLDERS and SATISFACTION

TOWARDS PROMOTIONAL OFFERS?

MEMBERSHIP CARDS * PROMOTIONAL OFFERS Crosstabulation

Count

PROMOTIONAL OFFERS

Total 1 2 3

MEMBERSHIP CARDS 1 27 18 10 55

2 12 12 7 31

3 5 5 14 24

Total 44 35 31 110

CHI-SQUARE:

b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 36.7.

EDUCATION

Observed

N

Expected

N Residual

1 47 27.5 19.5

2 27 27.5 -0.5

3 16 27.5 -11.5

4 20 27.5 -7.5

Total 110

RECEPTION OF STORE PERSONNEL

Observed

N

Expected

N Residual

1 46 36.7 9.3

2 35 36.7 -1.7

3 29 36.7 -7.7

Total 110

MEMBERSHIP CARDS

Observed

N

Expected

N Residual

1 55 36.7 18.3

2 31 36.7 -5.7

3 24 36.7 -12.7

Total 110

Test Statistics

MEMBERSHIP CARDS PROMOTIONAL OFFERS


a

df 2 2

Asymp. Sig. 0.001 0.298


From the above SPSS calculation we infer that there is a significant relation between LOYAL

MEMBERSHIP CARD HOLDERS and SATISFACTION TOWARDS PROMOTIONAL OFFERS.

6.4.4. Is There a Relation between AVERAGE MONTHLY PURCHASE AMOUNT and VARIETY IN

PAYMENT OPTIONS PROVIDED?

MONTHLY PURCHASE * PAYMENT OPTIONS Cross tabulation

Count

PAYMENT OPTIONS

Total 1 2 3

MONTHLY PURCHASE 1 19 18 10 47

2 22 9 5 36

3 5 8 14 27

Total 46 35 29 110

CHI-SQUARE:

MONTHLY PURCHASE

Observed

N

Expected

N Residual

1 47 36.7 10.3

2 36 36.7 -0.7

3 27 36.7 -9.7

Total 110

Test Statistics

MONTHLY PURCHASE PAYMENT OPTIONS


a

df 2 2

Asymp. Sig. 0.065 0.132


From the above SPSS calculation we infer that there is a significant relation between AVERAGE

MONTHLY PURCHASE AMOUNT and VARIETY IN PAYMENT OPTIONS PROVIDED.

Findings

Many small stationary shop owners are attracted to B2B wholesalers because of the price and

availability of various products and are satisfied with the promotional offers at the stores. Out of 110

respondents maximum people are agree about the quality of products that the B2B stores are providing. Most

of respondents are satisfied with the pricing and agreed with Display of products and brands in the mall.

Respondents can’t say about the Warranty of products and brands given by the stores. Customers are showing

PROMOTIONAL OFFERS

Observed

N

Expected

N Residual

1 44 36.7 7.3

2 35 36.7 -1.7

3 31 36.7 -5.7

Total 110

PAYMENT OPTIONS

Observed

N

Expected

N Residual

1 46 36.7 9.3

2 35 36.7 -1.7

3 29 36.7 -7.7

Total 110

their interest due to the WORD OF MOUTH about the retail store. Customers have overall satisfaction about

the perception towards the wholesale malls.

Suggestions:

•Credit cards must be accepted.

•They are providing the highly discounts melas, but they didn’t providing the exchange facility.

•They have to concentrate more on branded items.

•There is no free delivery facility at Best Price; if Best Price shop provides it the retailers will feel comfort

because the Best Price shop is far away from the city.

Conclusion

Retailing is one of the largest industry in India and one of the biggest sources of employment in the

country. India has witnessed a fast pace of retail development over the past five years. Not only global players

like Wal-Mart and Metro are trying to succeed in our country in the retail sector but also players like Reliance,

Aditya Birla group are also trying their hands in the retail sector. The Organized Retailing is becoming more

important in present days and will certainly improve in the future. With the emerging of big giant retailers like

“Best Price” (i.e. Wal-Mart) there is certain possible that the people in and around the store will be benefited

and will have advantages like Employment opportunities, Retailers satisfied with less cost and products

available in bulk quantity, Country GDP will also increase.

With the entry of big players like Wal-Mart B2B business has shown positive trends in the recent

times. Wal-Mart entered in the name of Best Price and as also Metro into different cities across India. In this

article the main objectives are perception, buyer-seller relationship and repurchased intentions of the

wholesale malls. There is good perception to retailers about the Best Price and Metro. Maximum retailers in

the country know very well about Best Price shop and Metro. The retailers are purchasing products from the

Best Price and Metro for their shop. The retailers are mainly purchasing products from Best Price and Metro

because of three factors, those are

•Quality

• Price

•Bulk of purchase

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