A Study on the Role of Demographic and Psychographic Dynamics in Food and Grocery Retailing

Abstract

The Indian food and grocery retail sector is in the transformation mode for various reasons like strong macro-economic fundamentals and the changing socio-economic scene are driving what were once traditional and small scale retail outlets into organised retail formats aimed at catering to the evolving tastes and needs ofthe discerning consumers. But the very fast changing trends infood and eating habits ofconsumers have contributed immensely to the growth of 'Western' format typologies such as convenience stores, departmental stores, supermarkets, specialty stores and hypermarkets. This has happened for various conspicuous reasons namely demand and supply, socio-cultural, demographic, psychographic, economic and technology advancements like a large segment ofyoung population, a rapidly expanding middle class, rising income levels, growing literacy, increasing number ofworking women and nuclearfamily structures which in turn have created an enormous demand for consumer goods and paved way for modern retail formats. The ever changing consumer's psychographic variables like activities, interests, opinions, values and lifestyles have also completely changed the formats namely convenience stores, supermarkets and hypermarkets etc. are the crystal clear reflections of tectonic shifts in demographic and psychographic changes ofconsumers. However, little is known about its actual influence and contribution to the organised retailing infood and grocery sectorfrom an empirical analysis. Thus, understanding ofdemo-psychographic dynamics has become an imperative in designing modern food and grocery retail formats based on the purchase patterns. The study is purely based on primary data and necessary secondary data to reinforce the model. A total of200 retail customers in Hyderabad actively participated in the survey. Findings, various managerial and marketing implications are extensively discussed.

Grocery Retailing in India: Online Mode versus Retail Store Purchase

“…A large section of customers have adopted organized food and grocery retail outlets as their preferred destination for grocery shopping. They primarily desire that their time and money should not be wasted but optimized while shopping (Prasad & Reddy, 2007). Rise in disposable income, paucity of time, increased desire for convenience, changing life style along with substantial growth in the number of Internet and smart phone users promises a rosy picture for greater adoption of the online mode of grocery shopping.…”

Outlet patronage in on-the-go consumption: An analysis of patronage preference drivers for convenience outlets versus traditional retail outlets

“…Outlets consumers patronise depend on their age (Prasad and Reddy, 2007). In the context of shopping malls, Hu and Jasper (2007) demonstrate that elderly consumers for instance have specific expectations which outlets should meet in order to win these customers.…”

“…They draw attention to the fact that elderly consumers have specific requirements such as seating facilities which have to be provided by mall operators in order to impact patronage. Prasad and Reddy (2007) investigate into demographics of food and grocery customers. They find that consumers' age differs among patrons of convenience stores, supermarkets, and hypermarkets.…”

The Role of New Retailing Formats in the Italian Local Development

“…Furthermore, the evaluation of the consequences on local economies generated by new large retailers can be studied in a different theoretical framework, aimed to define methodological and operative implications and oriented to the interpretation of social, economic and territorial effects (IRES, 2002;Lago, 2002;Prasad & Reddy, 2007).…”

“…Food sector dynamics still exert a strong influence on the micro-and macro-economic environment, agricultural and industrial production, transport, trade, consumption, as well as on some social and urban aspects (IRES, 2002;Lago, 2002;Prasad & Reddy, 2007).…”