Study of Awareness and Perception of Customers towards Digital Technology in Organized Retail Sector in Ahmedabad City

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1 Volume 7, Issue 4 (April, 2018) UGC APPROVED Online ISSN Published by: Abhinav Publication Abhinav National Monthly Refereed Journal of Research in Study of Awareness and Perception of Customers towards Digital Technology in Organized Retail Sector in Ahmedabad City Alpesh R. Gajjar 1 Research Scholar Kadi Sarva Vishwavidyalaya, Gandhinagar, India gajjaralpesh28@gmail.com Dr. Ramakanta Prusty 2 Principal, B. P. College of Business Administration Kadi Sarva Viswavidyalaya, Gandhinagar,India ramakant.prusty@gmail.com ABSTRACT Some of the key innovations in present organized retail sector include Customer identification using Bar Code, RFID, Targeted and customized mobile promotions, Mobile Point of Sale (POS), Personnel Shopping Assistants, Digital Payments, Intelligent database, Cloud Computing, Multi-Channel Customer Management that will ease daily operations and provide retailers the much needed competitive advantage. An objective of the study is Awareness and Perception of Customers towards Digital Technology consumer in Organized Retail Sector. Fundamentally, the study is designed as descriptive research with Sample size of the study is 200 respondents. Target market is Ahmedabad city of Gujarat state, and sampling techniques for survey is Convenience Sampling Method. The experience content of the technology will encourage even the non-technology savvy people to try the technology. Therefore, the customer acceptance can be increased by augmenting the Digital Technology use with store features. The issues of supplier capability and employee training are needed to address collectively by the various stakeholders.. Keywords: Digital Technology, Customer Service, Organized Retail, Retail INTRODUCTION Retailing is the final stage in the distribution process (from manufactures to consumer), in which the retailer as an intermediary, collects an assortment of goods and services from various sources and offers them to the customers. India s retail market is expected to nearly double to US $ 1 trillion by 2020 from US$ 600 billion in 2015, driven by income growth, urbanisation and attitudinal shifts are some major reasons for the organized retail boom in India. The retail sector in India is emerging as one of the largest sectors in the economy. By 2015, the total market size is estimated to be around US$ 600 billion, thereby registering a CAGR of 7.45 per cent since Retail industry is expected to grow to US$ 1.3 trillion by 2020, registering a CAGR of 9.7 per cent between India is the fifth largest preferred retail destination globally. The retail sector in India comprises unorganized and organized segments. The unorganized sector consists of small family-owned stores, located in residential areas, with a shop area less than 500 sq.ft. They have a low cost structure, with smaller premises, low labour costs and low or no taxes. The Indian retail market is in its nascent stage; unorganized players accounted for 92 per cent of the market during The organized sector Available online on 68

2 (everything other than these small family owned businesses) accounts of only 8% of the total market, which is expected to raise by 20-25% by The organized retailing covers registered retail stores operating with necessary licenses and generating a cash memo for every transaction of sales. Retailing in India is undergoing a revolution. This is because of change in demographic profiles, increase in income levels, Urbanization, technology and globalization bringing about a dramatic shift in consumer tastes and preferences. DIFFERENT DIGITAL TECHNOLOGIES USED IN ORGANIZED RETAIL SECTOR 1. BAR CODE SCANNER is an electronic device for reading printed barcode. Bar coding scanners and bar coding to identify an item, use pre-stored data to calculate the cost and generate the total bill for a client. 2. RFID (Radio Frequency Identification): Under this, a shopping cart with a scanner and a touch screen computer offers information about each product and suggest complementarities. The computer keeps a list of items in the cart with a running total, so that we know exactly how much we are spending, 3. CUSTOMER RELATIONSHIP MANAGEMENT: CRM uses information technology to gather data, which can then be used to develop information acquired to create a more personal interaction with the customer. 4. E-RETAILING: E-retailing means electronic retailing i.e. selling of products or services via internet or telecommunication network for personal or household use by customers. 5. Mobile Point of Sale (POS): This would enable the purchase of goods while putting them in a shopping cart. The customer would be spared the hassle of standing in long queues. There are many different types, styles, models of mobile digital devices available on the market today. 6. QR CODES: This way, potential customers can scan the code and look at product specifications as well as reviews of the product they are interested in buying. 7. CLOUD COMPUTING: Cloud computing allows users to obtain computing capabilities regardless of their physical location fashion through a shared physical infrastructure via internet. 8. Wi-Fi: This would help in avoid the cost of connecting to a mobile operator network and being able to deliver data such as pricing in a more secure way. 9. Self-service technologies, e.g. in the form of mobile point-of-sale and self-service product scanners; are defined as technological interfaces that enable customers to produce a service independent of direct service employee involvement (Meuter et al. 2000, p.50). 10. Security related Technology: Retailers face many challenges in keeping the store secure. Security concerns for retailer mainly include customer safety, standardization of different security systems, education and training of employees and security staff. 11. Multi-channel Customer Management: By multi-channel retailing shall be understood the delivery of customer propositions via multiple channels brick-and-mortar stores, catalogs, newspapers, magazines and other prints, kiosks, mobile digital devices, and/or web sites with at least some degree of channel integration in management, information and service, i.e. in a consistent and coordinated way across all channels. Omni-channel retailing is then a higher level of multi-channel retailing. 12. A Social Network is the label attached to any consumer initiated communication with other consumers who share an interest and use the World Wide Web as a platform for creating a community. VOL. 7, ISSUE 4 (April, 2018) 69

3 EMERGING RETAIL FORMATS IN ORGANIZED RETAIL SECTOR Emerging retail formats provide a wide variety to customers and offer an ideal shopping experience with an amalgamation of product, entertainment and service, all under a single roof. Indian retail scenario, with the intervention of organized retail in the form of modern retail formats such as one-stop malls, speciality malls, hypermarkets and big-box retailing, has witnessed a remarkable shift in the preferences of consumers. The formats considered in the present study are: 1. Malls: Malls ranging from 60,000 sq ft to 7,00,000 sq ft, are the largest form of organized retailing today. These lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a single roof. 2. Convenience Stores: These are relatively small stores located near residential areas and open for long hours for all seven days a week. These carry a limited line of high-turnover convenience products and fill important consumer needs. People are willing to pay for the convenience. 3. Department Stores: Department Stores are another type of emerging formats and these carry several product lines- typically clothing, home furnishings and household goods - with each line operating as a separate department managed by specialist buyers or merchandisers. 4. Hypermarkets/Supermarkets: Hypermarkets and Supermarkets are the latest formats located in or near residential high streets. Hypermarkets carry a product range varying from Foods, Home-ware, Appliances, Furniture, Sports, Toys and Clothing; and Supermarkets are large self - service outlets, catering to varied shopper needs and mainly focus on Food, Grocery, and personal sales. 5. Discount Stores: Consumers preferring to pay a low price can visit the Discount Stores or Factory Outlets, which offer discounts on the MRP, as they sell in bulk and have higher economies of scale. 6. Speciality Stores: These stores especially cater to consumers who are looking for assorted brands at one store. For instance, apparel stores, sporting goods stores, furniture stores and bookstores are some of the examples of speciality stores. OBJECTIVES OF THE STUDY The main objective of the study is to present: 1. To study factors that attract customers to buying from Organized Retail Store. 2. To compare the influence of Digital Technology on consumer purchase behavior demographically in organized retail sector of Gujarat. 3. To investigate awareness of the benefits of Different Digital Technologies among Indian retail businesses as well as customers 4. To identify problems and challenges faced by the customers as well as retailers in adopting different Digital Technologies RESEARCH METHODOLOY Fundamentally, the study is designed as descriptive research. For this research, get primary data in terms of a self-administered questionnaire used to collect the response. The population consists of retail outlets, which are operating in Ahmedabad. For this study, sampling frame is the Customer who is shopping from retail stores or malls. Sample size of the study is 200 respondents. Target market is Ahmedabad city of Gujarat state, and sampling techniques for survey is Convenience Sampling Method. The responses were collected from the customers visiting the store at the time and place where the researcher was collecting the data from the store personnel. Use secondary data for different retailer s details, from the different web sites, internet and magazines, newspapers etc. VOL. 7, ISSUE 4 (April, 2018) 70

4 LITEREATURE REVIEW 1. According to Jitendra Singh (2014), Information Technology (IT) contribution to modern retail sector in no. s of ways which includes labor saving, inventory management., monitoring of checkout operations, consumer awareness and what not. IT innovations helps in creating customer loyalty and increase the level of customer satisfaction because all the time information is available to the customer and even for the retailer also. This aspect help in creating consumer awareness and helped in reducing time, money and efforts which the customer always want to get their satisfaction so information technology innovations give boost up to the retail sale and the future of IT is secure for retail growth. 2. According to Deloitte (Global Powers of Retailing 2013), a robust retail strategy must include: A strong vision of the experience the customer desires across all channels, a nimble operating model that can adapt as the retail environment changes, a deep understanding of how to support the vision through inventive digital solutions and retail technologies, such as playbooks to operationalise the Omni-channel strategy. 3. Bhardwaj and Makkar (2007) opine that NCR and Mumbai will continue to dominate the Indian retail scene and despite strong growth in secondary and tertiary cities, these metros will still account for 40% of India s organized retail sector by Both are large and diverse to accommodate a variety of new formats, including one-stop malls, speciality malls, hypermarkets and big-box retailing. The researcher is of the view that secondary metros are perceived by retailers as the next retail destinations which throw a strong challenge to Mumbai and NCR Region. Pune, Bangalore, Kolkata, Hyderabad and Ahmadabad Factors such as growing income and rising aspirations are increasing the demand for organized retailing. 4. Technology plays a critical role in the area of business model innovation as it can streamline the company s internal activities and connections with partners, expand the company s boundaries and engage its customers in a new way. Business model innovation sets in place the logic for competing effectively in existing and new markets and technology serves as an enabler to get closer to customers (Sorescu et al., 2011; Zott & Amit, 2012). 5. Moreover, business model innovation may not always be industry disrupting but still create significant benefits to the company in incremental steps (Johnson et al., 2008; Amit & Zott, 2011; Ucaktürk et al., 2011). Therefore, business model innovation is, arguably, the best option for the company to grow the market share and increase profits while the application of modern technology forms an inseparable aspect in this regard (Ucaktürk et al., 2011). 6. According to PWC report (2012) the driving forces for Indian retail industry are, higher incomes driving the purchase of essential and non-essential products, evolving consumption patterns of Indian customers, new technology and lifestyle trends creating replacement demand increase in rural income as well as urbanization,increase in easy access to credit and consumer awareness,growth of modern trade format across urban, tier i, tier ii and tier iii cities and towns and rapid urbanization and growing trend towards nuclear families. 7. According to Amirtha & Sivakumar, 2015, Rapid urbanisation, increased economic growth, rising middle class population and youth occupying major proportion of the total population have all influenced the Indian consumer behaviour and consumption patterns. However, the retailers who can effectively overcome some challenges like intensified competition, amplified land costs, feeble infrastructural facilities, shortage of trained human resource etc. would be the most powerful retailers to get a place in the minds of the customers, thereby sustain in the market. VOL. 7, ISSUE 4 (April, 2018) 71

5 DATA ANALYSIS Demographic & Other Customer Preferences Analysis Gender Respondents Frequency Percentage Male % Female % No. of Family Members Up to % 4 to % 6 to % Above % Marital Status Married % Unmarried % Age Upto 20 yrs % yrs % yrs % yrs % 51 yrs. & Above 7 3.5% Education Undergraduate % Graduate % Post Graduate % Others 5 2.5% Type of Family Joint % Nuclear % Profession Govt Employee % Private Employee % Business % Student % HouseWife % Others % VOL. 7, ISSUE 4 (April, 2018) 72

6 Monthly Income -Family (in INR) Upto 20, % 20,001 40, % 40,001 60, % Above 60, % How frequently do you shop in these organized retail shops? Weekly % 2 to 3 times a month % Once in a month % Rarely % Factors that attract respondents to buying from Organized Retail Store Agree (5) Agree (4) Neutral (3) (2) (1) Weighted Mean Availability of all necessary goods under same roof. Shopping from an organized retail outlet is a Status symbol Cater to the needs of all income groups Wide range of Branded products Superior Quality of Products Longer Opening and Convenient working hours. Physical Appearance/Ambience inside Retail Store Digital Technologies (Barcode, Digital Signage, RFID, Self Service Technology, CCTV Camera) in store Trial rooms Accessibility & Self Pickup of products Availability of Helpful Staff More than one counters for billing Honoring credit/debit cards/mobile app payment Attractive Offers/ Schemes, Discounts on bulk buying Well-defined Goods return policies Availability of Parking Space VOL. 7, ISSUE 4 (April, 2018) 73

7 Perception of respondents on Benefits that Digital Technologies can provide Agree (5) Agree (4) Neutral (3) (2) (1) Weighted Mean Secured Shopping Environment Increases operational efficiency More option of Digital Payment System Quicker Check-in & Check-out Intimation of offers through Digital database Support execution of better return program and Ease of replacement of defective goods Authentic Printed Bill and Processing Ease to shop online & tracking of transactions through Websites Will reduce or Eliminate Theft In-Store customer marketing (Information & Check-out) Perception of respondents on Challenges /problems in the use of Digital Technologies Unavailability of technology in every locations Reduction in efficiency due to untrained staff Increases of cost of product because of tagging and Cost of technology (Hardware & Software) There is lack of Customer acceptance (Privacy problem) Suppliers do not have the capacity to adopt technology Agree (5) Agree (4) Neutral (3) (2) (1) Weighted Mean FINDINGS In the demographic profile of the respondents majority gender of the respondents are male, education of the respondents are Graduate, and no. of family members in the 200 respondents is majority 4 to 6 members in the family. Marital status of the respondents are majority are Married. Occupations of the respondents are mainly Private Employee. Monthly income of the respondents is range between Rs. The frequency of visit the retail mall rarely and once in a month by the respondents. VOL. 7, ISSUE 4 (April, 2018) 74

8 Among the respondents, most of the respondents rank no. 1 to Hypermarkets/Supermarkets (Large self-service outlets). Among 200 respondents there are majority Indian retail brand aware about the different brands like, Big Bazzar, D- Mart, Star Bazzar, Reliance Fresh, etc. Majority of the respondents agree with factors like availability of all necessary goods under same roof, cater to the needs of all income groups, superior quality of products, physical appearance inside store, digital technologies in store, accessibility & self-pickup of products, honoring credit/debit cards/mobile app payment, attractive Offers/ Schemes, discounts on bulk buying, more than one counters for billing and well defined goods return policies that attract buying from Organized Retail Store. Majority of the respondents disagree with factors like availability of parking space, longer opening & convenient working hours and availability of trial rooms that attract buying from Organized Retail Store. Majority of the respondents agree with benefits like secured shopping environment, increases operational efficiency, more option of digital payment system, provides quicker check-in & check-out, ease of replacement of defective goods, authentic printed bill and processing, will reduce or eliminate theft, in-store customer marketing (information & check-out) etc. that in the use of Digital Technologies. Majority of the respondents agree with Challenges /problems like unavailability of technology in every location, reduction in efficiency due to untrained staff, increases of cost of product because of tagging and cost of technology, there is lack of customer acceptance (privacy problem) and suppliers do not have the capacity to adopt technology etc. that in the use of Digital Technologies. The findings explain that D Mart has ranks highest in customer satisfaction with weighted means ranks process. With the emergence of new technology, retail sector has also changed a lot. In Ahmedabad City, major shopping malls, departmental stores, chain stores are using modern technology and competing the existing one. In Ahmedabad city, departmental stores like Reliance Fresh and Hypermarket/ Supermarket store like D Mart are challenging other co-operative stores who are in the business from last years. The simple reason of their success is adoption of modern retailing techniques and use of modern technology. CONCLUSION In conclusion as retail industry is fastest growing sector, every retail store must give importance to service quality variables like easy access to store, wide range of product, and availability of products with well trained staff, etc. Indian retail need to move towards the adoption of different Digital Technologies at the item level. The experience content of the technology will encourage even the nontechnology savvy people to try the technology. Therefore, the customer acceptance can be increased by augmenting the different digital technologies use with store features. The high price of different digital technologies is a challenge that affects both the retailers and customers. Difficulty of adopting different digital technologies to certain products and the privacy concerns are some areas here improvement of technology needs to be addressed. The issues of supplier capability and employee training are needed to address collectively by the various stakeholders. With Indian customers creating the customer experience using different digital technologies. On the bases of finds and with result most satisfied customers with D Mart with that reason it can be at highest position among the selected stores. However, it important to grow every organization, for that reason store must be given importance to customer s loyalty and extension of transaction with stores. Indian and global IT service providers are working on a range of other retail innovations such as hi-tech store solutions, mobility solutions, shopping assistants, etc. that will ease daily operations and provide retailers the much needed competitive advantage. Use of technology is key factor in modern retailing. Modern techniques such as bar coding, internal security system, eye cameras, video cameras, digital Payment System, E- Retailing, Multi-Channel Customer Management, and RFID etc. should be used. For stock keeping, accounting, billing and other things, use of computers and related software is essential for surviving. VOL. 7, ISSUE 4 (April, 2018) 75

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