A Study on Consumer Perception Towards

Supermarkets in Tirunelveli, South India

J. Owen Immanuel*, R. Sangeetha*, N. Pradeep Kumar*

Abstract Retail is an emerging sector in India. Marketers work hard to influence the customers by offering them in various ways, at
various locations, in various forms resulting in emergence of various retail formats throughout the country. 15 years ago, Super Markets
were considered a luxury, but now it is very common in almost every city. Supermarkets have turned out to be a huge hit among middle class
families. It is no different in Tirunelveli, a well-known city in Southern Tamilnadu. This paper aims to understand supermarket consumers in
Tirunelveli. The paper focuses on the shopping habits of supermarket consumers especially with regard to buying in supermarkets. It attempts
to achieve a better understanding of the perception of the consumers towards supermarkets on the basis of various service quality dimensions.

Keywords Retail, Customers, Perception, Marketing Strategies, Supermarket.

INTRODUCTION as Wal-mart and Costco, but also from natural grocers and
super markets. Dison. T, who runs a small provision store at
Food dominates the shopping basket in India. Food and Tirunelveli, says “ I have been running this shop for close to 15
grocery occupies the second place in the retail trade. It years. Even 10 years ago, customers had limited needs. Now
constitutes 53 percent of the total private consumption they come and ask for products I have not even heard of.”
expenditure (US$154 billion) and 70 percent of the total The rapid changing trends in consumer habits with regard
retail sales (India Retail Report, 2005). The current estimated to food and eating have contributed greatly to the growth
value of the Indian retail sector is about 500 billion USD of Western format typologies such as convenience stores,
and is expected to reach 1.3 trillion USD by 2020 (The departmental stores, super markets, specialty stores and
Indian Kaleidoscope Emerging trends in retail, 2012). The hypermarkets. Massive demand for consumer goods and the
Indian retail industry is the second largest employer after emergence modern retail formats are the result of various
the farming sector About 40 million people are employed in obvious reasons namely demand and supply, socio-cultural,
Indian retail sector of which about half a million are employed demographic, psychographic, economic and technology
in the organized sector ( Kumar et al., 2008). 15 years ago, advancements like a large segment of young population,
Super Markets were considered a luxury, but now it is very a rapidly expanding middle class, rising income levels,
common in almost every city. Supermarkets have turned out growing literacy, increasing number of working women and
to be a huge hit among middle class families. Such shops nuclear family structures.
are one-stop-shop for working women as well, since they
don’t have to visit different shops to buy household items. Thus, understanding the consumer behavior becomes essential
The other reason for a change in the attitude of consumers for designing modern food and grocery retail formats based
towards such markets is their exposure to lifestyle outside on the purchase patterns. Further it is important for modern
India. formats and traditional formats to know the determinants of
customer satisfaction. A set of characteristics or attributes
“We opened our store just two months ago and currently that consumers consider important will determine their
we have a footfall anywhere between 200 to 300 per day on patronage towards a particular store. Consumers use these
week days and between 800 to 900 on weekends. We hope attributes to determine which stores can cater to their needs.
to start another one towards the heart of the city soon” says
the Manager of Aryaas Supermarket in Tirunelveli. The MD This paper aims to contribute to the state – of – the – field
says “We have been in the wholesale business for close to of research on supermarket consumers and customers in
30 years. Though the city has a good share of supermarkets, general. It attempts to achieve a better understanding of the
we don’t feel any pressure as such. We too have offers for perception of the consumers towards supermarkets with
all our products.” However, opening up of these stores have special reference to Tirunelveli.
not gone down well with small-scale provision store owners. Tirunelveli is a well-known city in Southern Tamilnadu. It has
But the traditional grocery store chains are facing challenges another town known as Palayamkottai. The Palayamkottai,
not only from large discounters and warehouse stores such known as the “Oxford of South India (for best education)”,

*
Assistant Professor, Xavier Institute of Business Administration, St. Xavier’s College, Palayankottai, Tamil Nadu, India. E-mail:
owenimmanuel@gmail.com, npkmba82@gmail.com, rsangeeth76@gmail.com
 A Study on Consumer Perception Towards Supermarkets in Tirunelveli, South India 39

is a town in the Tirunelveli district in Tamil Nadu. It is become salient when they are protesting at the Columbus
part of Tirunelveli City Corporation. It has always been a Day parade in Denver, Colorado. During camping at night,
rather laid-back little city. Among the elite population, it is A bright flashlight shining in your face is sure to be salient.
sometimes called as a Pensioner’s Paradise. However, in The degree of salience depends on three features. (Fiske and
recent years, businesses are rapidly developing. Retailing is Taylor, 1991). Visually or aurally stimulating and things that
also among the growing business sector. Supermarkets have meet our needs or interests tend to be more salient in our
revolutionized shopping in Palayamkottai. eyes. Lastly, expectations affect what we find salient.
There are four major supermarkets in Palayamkottai. Even
though each one has a definite customer base, competition ORGANIZING INFORMATION
is also high among them. Another major national retailer
(Big Bazzar) is opening its supermarket very shortly. At Organizing is the second part of the perception process, in
this juncture, a study on consumer perception will help which we sort and categorize information that we perceive
the supermarkets to understand how customers perceive based on innate and learned cognitive patterns. Three ways
their services. Understanding perception is important for we sort things into patterns are by using proximity, similarity,
effective marketing. It helps to modify existing strategies and difference. In terms of proximity, we tend to think that
and formulate new strategies in order to improve the service things that are close together go together.
quality and increase the satisfaction level of consumers.
PUNCTUATION
SCOPE OF THE STUDY
Punctuation refers to the structuring of information into
The research is carried out to understand the shopping habits a timeline to determine the cause (stimulus) and effect
of supermarket consumers especially with regard to buying (response) of our communication interactions. Allan L.
in supermarkets and their perception towards the various Sillars, “Attributions and Communication in Roommate
service quality dimensions of supermarkets. It also includes Conflicts,” Communication Monographs 47, no. 3 (1980):
the expectations of consumers regarding additional facilities 180–200. This concept can be applied to interpersonal
to be provided, preferred sales promotion and overall conflict. It will help us see how the perception process
satisfaction level. This study will help the supermarkets extends beyond the individual to the interpersonal level.
to formulate strategies to improve their service quality This concept also helps illustrate how organization and
and increase customer satisfaction level. Ultimately, it will interpretation can happen together and how interpretation
enable them to retain their customer base. can influence how we organize information and vice versa.

THEORETICAL BACKGROUND AND SUPER MARKETS

PREVIOUS RESEARCH Perception A supermarket, a form of grocery store, is a self-service store
offering a wide variety of food and household merchandise,
Perception is defined as the process by which an individual
organized into departments. It is larger in size and has a
selects, organizes and interprets stimuli into a meaningful
wider selection than a traditional grocery store, also selling
and coherent picture of the world. It can be described as
items typically found in a convenience store.
“how we see the world around us”. It is a highly individual
process based on each person’s own needs, values and
expectations. Therefore, two individuals may be exposed STORE IMAGE AND VARIOUS STORE
to the same stimuli under the same apparent conditions, but ATTRIBUTES
each person recognizes, selects, organizes, and interprets
these stimuli differently. We use all five of our senses to According to Engel, Blackwell and Miniard (1995) store
gather information. But our perceptual field (the world image is determined by environmental dimensions such as
around us) includes so many stimuli that it is impossible for air quality, lighting, layout, carpeting and aisle width and
our brains to process and make sense of it all. So, various placement are physical store attributes. They influence store
factors influence what information actually continues on choice. Understanding the image become important based on
through the perception process. the assumption that the store possessing the most congruent
Salience is the degree to which something attracts our attributes with the image desired by consumer will have
attention in a particular context. Abstract, like a concept, better chance of being selected and patronized (Martineau,
or concrete, like an object can attracting our attention. For 1958, Doyle and Fenwick, 1974-1975, Amirani and Gates,
example, a person’s identity as a Native American may 1993).
40 XIBA Business Review Volume 1, Issue 1, November 2014 - May 2015

According to different authors, as part of the overall image on Customer Loyalty within the Indian Retail Sector’ and
towards the store, different store attributes have been identified. observed that except product price, other store and product
Lindquist (1974) came up with nine different elements by attributes have positive effects on customer loyalty.
combining models from 19 studies: merchandise, service,
Mittal and Mittal (2008) in their study ‘Store Choice in
clientele, physical facilities, comfort, promotion, store
the Emerging Indian Apparel Retail Market: An Empirical
atmosphere, institutional and post transaction satisfaction.
Analysis’suggested retailers to consider underlying
Doyle and Fenwick (1974) distinguished only five elements:
perceptions and demographic correlates of local consumers.
product, price, assortment, styling and location. According
According to them, retailers could use Loyalty Drivers
to Bloemer and Shroeder (2002) store image is the sum of all
and Shopping Experience Enhancers to be integrated into
the store‘s attributes, in the way perceived by the consumer,
the retail format to create sustainable store choice and
through his or her experience with the store.
hence, store loyalty. Further research is needed to carry out
A study by Seiders and Tigert (2000) compared supercenter research for other retail sectors such as food and grocery,
shoppers with traditional supermarket shoppers. According consumer electronics, gifts and so on and also to investigate
to the Supercenter shoppers, low prices and range of product the influence of demographics and psychographics on store
assortment are the primary reasons for their format choice. choice and shopping orientations.
In contrast, traditional supermarket shoppers placed more
importance on location and product quality. Fox et al. (2004) RESEARCH AIMS AND METHOD
identified frequency of store promotion efforts and product
assortment-related factors to be highly influential on format Following the review of past research works, this study aims
choice in the grocery sector. Interestingly, price was shown to focus on the following: (i) To understand the profile of
to be less influential. consumers of supermarket based on demographics (ii)To
The ultimate objective will not be achieved by just bringing understand the shopping habits of supermarket consumers
the customer to the store. Their evaluation criterion refers with regard to buying in supermarkets (iii)To know the
to tangible and/ or intangible benefits that consumers use perception of consumers regarding various aspects of
to compare product classes, brand, and vendors and so on. supermarkets (iv)To understand the overall satisfaction level
Persuading them to buy again needs due emphasis on in- of consumers regarding supermarkets.
store promotions, ambience, design and social cues, thus,
enabling them to choose the brand and product from the SAMPLE
store. Their consumption and post purchase experience
accompanied by various loyalty building initiatives can play The data sample was selected face to face by a team of
a major role in convincing them to make impulse buying, Tamil – speaking trained research assistants in the main
repeat purchases ultimately creating store loyal customers. commercial street of Tirunelveli district of Southern
Consumer behavior is defined as the study of individuals, Tamilnadu. The study has been undertaken in the Tirunelveli
groups, or organizations and the processes they use to select, area. Palayamkottai and Tirunelveli are twin cities in the
secure, and dispose of products, services, experiences, or Tirunelveli district. These two cities are just separated by
ideas to satisfy needs and the impacts that these processes the river Thambaraparani. Palayamkottai Taluk is situated
have on the consumer and society. According to various in the eastern side of the river and Tirunelveli city is located
researches, consumer behavior is difficult to predict, even on the western side of the river. Both the cities are connected
for experts in the field. by a bridge. Tirunelveli Municipal Corporation includes
the palayamkottaitaluk area also.This area is well known in
Charles Dennis (2005) investigated ‘Why do People Shop Tamilnadu as a place of social interaction and gathering of
Where They do? The attributes of Shopping Centres that people.
Determine Where Consumers Choose to Shop’ and found that
people are attracted to different centres for different reasons The required information for the study has been collected
as shoppers have different expectations. The attributes, both form primary and secondary sources. The sample 120
though, which were significantly different between centres, respondents selected for study served as primary sources of
did not appear to be significantly influenced by income or data. The records of the five selected supermarkets served as
socio-economic group. Shoppers spend more time at centres secondary sources of information.A sample of 120 users of
which more closely match their requirements. Further supermarket have been selected from the five supermarkets
research is needed to carry out studies consumers‟ choices working in Palayamkottai and Tirunelveli at the rate of 24
of more shopping centres and more respondents. each as detailed below:

Rajaguru and Matanda (2006) examined ‘Consumer

Perception of Store and Product Attributes and its Effect
 A Study on Consumer Perception Towards Supermarkets in Tirunelveli, South India 41

No. of of the data collected was done with simple statistical tools
S l . Name of the such as averages, percentages, tables, charts and diagrams
Respondents Percentage
No. Supermarket
Selected .Bar charts and pie charts are mainly used for interpretation
1 Spencer’s Daily 24 20 of the facts given in the tables. Inferences have been arrived
as the findings of the study.
2 Aryaas Supermarket 24 20
3 Arasan Supermarket 24 20 A Likert scale is a widely used question format that asks
4 Nachiyar Supermarket 24 20
consumers to numerically rate whether they agree or disagree
with a particular statement. Likert scales are used to measure
Anantha Departmental
5
Store
24 20 consumer attitudes. Respondents indicate whether they have
a positive or negative attitude towards a statement and the
120 100
responses are weighted by researchers using a numerical
scale. For example, a question in the Likert scale format
MEASURES might ask survey respondents whether they believe that
airline fees for checked luggage is appropriate. Respondents
The survey instrument was prepared in a series of steps indicated whether they strongly disagree, disagree, are
following a systematic review of literature. An original neutral, agree, or strongly agree.
English shortened version of the research was prepared
including 20 questions fitted on three pages. To select the
120 respondents who are the users of the supermarkets, non-
RESULTS
probability, convenience sampling method has been adapted.
The final sample of 120 completed surveys consisted of a
To collect the required primary data, a structured close- larger proportion of female respondents (56.67).Concerning
ended questionnaire consisting of sixty questions (both in age group the largest proportion of the sample was in the
Tamil & English language) were used. In addition, formal 46- 55 age group (23.33). The survey questions developed
talks with office bearers of the supermarket were also used in by the researchers were used to identify the respondents with
the collection of primary data. Analysis and Interpretation” various age groups, incomes and family types.

Table 1. Demographic and Socio-Economic Background of 120 Respondents visiting Supermarkets

Variable N Percentage
Male 52 43
Gender Female 68 57
Total 120
Young 28 23
Adult 63 53
Age
Old 29 24
Total 120
Joint Family 18 15
Family Type Nuclear Family 102 85
Total 120
Low Income 84 70
Moderate Income 30 25
Income
High Income 6 5
Total 120
Employed 67 56
Business 29 24
Professional 2 2
Occupation
Home Maker 20 16
Others 2 2
Total 120
Source: Primary Data
42 XIBA Business Review Volume 1, Issue 1, November 2014 - May 2015

Table 2. Supermarket Shopping Habits

Variable N Percentage
Low 96 80
Frequency of visit* Moderate 21 17.50
High 3 2.50
< 2000 59 49.17
Monthly spending (Rs.) 2000 - 4000 52 43.33
> 4000 9 7.50
Public Transport 31 25.83
Hire Auto 7 5.83
Mode of Transport Two wheeler 52 43.33
Car 18 15
By walk 12 10
Short 2 1.67
Duration of stay in supermar-
Moderate 62 51.67
ket#
Long 56 46.67
Weekdays 2 1.67
Weekends 29 24.17
Preferred Day
Holidays 45 37.50
Any convenient day 44 36.67
Morning 11 9.17
Afternoon 8 6.67
Preferred Time
Evening 73 60.83
Any convenient day 28 23.33
Family 95 79.17
Persons Accompany Friends 8 6.67
None 17 17.17
Source: Primary Data
* Low represent “once or twice in a month”; moderate represents “ once or twice in a week” and high represents “more than twice in a week”
# Short means less than 10 minutes, moderate means 10 to 30 minutes and long means more than 30 minutes.

Table 3. Customer Perception towards Supermarket

Factor Mean Score* Standard Deviation

Excellent product quality 1.86 1.01
All time availability of needed products 2.09 1.05
Merchandise
Availability of all home needs products 1.79 0.85
Locating and accessing the products are easy 1.61 0.79
Highly responsive and knowledgeable sales force 2.04 1.07
People
Friendly sales people and also have customer knowledge 2.48 1.10
Sufficiently informative and simple bills 1.91 0.85
Bills
Error free bills 2.29 1.01
Ample space for free movement 1.96 0.83
Store Interior & Layout
Pleasant environment 2.16 0.88
Easy return and exchange of products 3.08 1.40
Customer Policy
Quick and smooth rectification of customer complaints 2.63 1.07
Parking Sufficient parking facility 2.67 1.12
Source: Primary Data
* On a scale of 1 to 5 where 1 is “Strongly Agree” and 5 is “Strongly Disagree”
 A Study on Consumer Perception Towards Supermarkets in Tirunelveli, South India 43

FINDINGS DEMOGRAPHIC PROFILE OF respondents perceive differently about product availability.

Most of the respondents perceive that all types of products
SUPERMARKET CUSTOMERS for home needs are available in supermarket. Most of the
respondents perceive that the products are presented neatly
Female respondents are slightly more comparing to male and are easy to locate and access. Most of the respondents
respondents. Male respondents also have significant share. perceive that the sales force is highly responsive and
Majority of the respondents (40% + 23.33%) are middle knowledgeable. Majority of the respondents perceive that
aged between 36 to 55 years of age. Most of the respondents the sales people are familiar with customers and friendly.
(85%) belong to nuclear family. It is inferred that most of Some of the respondents do not perceive in the same way.
the customers have small family. Majority of the respondents Most of the respondents perceive that the bills are simple
(30% + 40.83%) have either 3 members or 4 members in their and have sufficient information. Majority of the respondents
family. It is inferred that majority of the shoppers have few perceive that the bill processing is error free. Some of the
family members .Majority of the respondents (70%) have respondents do not perceive it in the same way. Most of the
monthly income less than Rs. 20,000. It is inferred that most respondents perceive that the supermarkets are spacious
of the respondents belong to middle class. Single income and have sufficient space to move. Most of the respondents
families are slightly more when compared to double income perceive that the supermarkets have pleasant environment.
families. Both government (32.5%) and private employees Nearly half of the respondents perceive that the return
(23.33%) are the major shoppers in supermarkets. Business and exchange of products are not easy. It is inferred that
people (24.17%) also have a significant share. It is inferred majority of the customers find it difficult to return and
that majority of shoppers are salaried people. exchange products. Majority of the respondents perceive
that the complaints are solved quickly and smoothly. Some
SHOPPING HABITS of the respondents perceive differently. Majority of the
respondents perceive that the supermarkets have sufficient
Nearly half of the respondents (55%) visit the supermarket parking facilities. Some of the respondents do not perceive
only once in a month. It is inferred that majority of the in the same way.
respondents’ shopping frequency is less. Maximum number
of respondents (90%) spend less than Rs. 4,000 in a month. SUGGESTIONS
It is inferred that the average spending for majority of the
shoppers is in between Rs. 2000 and Rs. 4000. Most of the Both male and female shop in supermarket. The super
respondents (43.33% + 15%) used their own vehicle to visit markets need to consider both gender while designing the
supermarkets. Majority of respondents use two wheelers. customer service and retail mix. Gender neutral strategies
Most of the respondents (85.84%) spend at least 20 minutes should be offered. Strategies can be adopted to attract
in the supermarket. Majority of respondents spend more than younger shoppers to the supermarkets. It may provide long
30 minutes. Majority of the respondents (37.5% + 36.67%) term benefits to the supermarkets. As majority of the shoppers
either prefer a holiday or shop on any convenient day. are middle class, supermarket should keep the prices low by
Majority of the respondents (60.83%) prefer evening to shop adopting low mark-up price strategy. By which they can
in supermarket. It is inferred that supermarkets have more increase the turnover. At the same time, they should stock all
shoppers in the evening. Most of the respondents (79.17%) the brands without compromising on the product assortment.
go along with their family to supermarkets. It is inferred that There exists a niche segment of affluent shoppers. Their
most of the shoppers prefer to spend their time with their expectation will be completely different. Supermarkets may
family while shopping in the supermarkets. include categories of premium products in their assortment.
Shopping experience is an important factor that determines
CONSUMER PERCEPTION TOWARDS the overall satisfaction of the supermarket consumers.
SUPERMARKET Supermarket may maintain the same level of amenities and
services and should follow strategies to enhance the shopping
Most of the respondents perceive the shopping in supermarket experience. Price is an important component in the retail
as a pleasant experience. It is inferred that supermarket offers mix. It generates revenue and also attracts more consumers.
pleasant shopping experience. Some of the respondents Supermarkets should adopt a competitive pricing strategy.
respond that the price alone does not pull customers towards But they should also give equal focus on other aspects of
supermarket. But majority of the respondents perceive the the retail mix. Sales promotion can be used to for positive
price levels are low in supermarket. Most of the respondents reinforcement. Supermarkets may provide surprise free gifts
perceive that the product quality is excellent in supermarket. based on the volume of purchase of each customer. It will
Most of the respondents perceive that all the products will help them to retain the customers. The current satisfaction
be available in supermarket at all the time. Some of the level indicates that there is lot of scope for improvement. To
44 XIBA Business Review Volume 1, Issue 1, November 2014 - May 2015

increase the satisfaction level, they should adopt strategies Bloemer, J., & Schroder, G. ( 2002). Store satisfaction
to provide better customer service. It will help them to retain and store loyalty. Journal of consumer satisfaction
the customer’s base and also to increase its market share. Dissatisfaction and Complaining Behaviour, 15, 68-81.
Chopra, A. (2013). An analysis of Indian Retail Sector an
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net/10603/6407
This study on consumer perception helps the supermarkets Coren, S. (1980). Principles of perceptual organization
to understand how customers perceive the services of the and spatial distortion: The gestalt illusions. Journal
supermarkets. It provides insights about supermarket of Experimental Psychology: Human Perception and
consumers. It reveals the shopping habits of consumers Performance, 6(3), 404–12
and their beliefs towards various aspects of supermarket.
Doyle, P., & Fenwick, I. (1974). How store image affects
They may adopt strategies based on the findings and
shopping habits in grocery chain. Journal of Retailing,
recommendations. It will be highly useful for the
50, 39-52.
supermarkets to provide better customer service by which
they can improve the overall customer satisfaction level. Engel, J. F., Blackwell, R. D., & Miniard, P. W. ( 1995).
Consumer Behavior (8th Ed.). NewYork: The Dryden
Press.
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