Identifying the perceived risks encountered by consumers in the retail category and analysis of their behavior patters to overcome suck risks

Abstract

The Retail industry in India is among the five largest markets in the world and is growing at a fast rate. In value terms, it is one of the major contributors to the Indian economy and accounts for 14-15% of its GDP. Players in the industry are classified into organized and unorganized retailers based on ownership and the channels of distribution employed by them. The organized sellers segment is constituted by convenience stores and supermarkets owned by corporate houses of the likes of Reliance, Aditya Birla Group, etc. But the greater chunk of the GDP contribution comes from the millions of sellers, most of who are self-employed and earn a living by selling via unorganized channels. Unlike the organized market where only a few kinds of products are offered for sale, the unorganized market players sell almost everything under the sun, ranging from textiles and auto spares to spices and household provisions to haircuts and DVD rentals. Through the ages, retail outlets in India have essentially been owner-manned small shops. The growth of the internet has facilitated the birth of a new class of sellers, the e-tailers. The internet gives the seller the advantage of an unlimited shelf space and the fallacies of geographical dispersion of the customer base do not affect the sales prospects. Customers, from both metros and prominent tier-II cities and towns have responded well to the idea of online purchasing as it has given them an incredible amount of convenience. But there are a few downsides to this story as well. A purchase decision to be made, without having taken a look at the actual product and the probable associated dissonance post the purchase have been reason enough for customers to avoid buying a product online.