A Study on the Customer Relationship Management in Retail

Marketing
Dr.Ch. Chandra Shekar
Department of Business Management,
Osmania University,
Hyderabad, Telangana 500007, India.

ABSTRACT: scale. Customer relationship activities have the most

A Customer relationship management system is a impact on customer retention Every customer service
business tool that allows you to manage all encounter has the potential to gain repeat business or
possible/likely customers, associates and prospects have the opposite effect The expectation of personalized,
information all in one place. The Sales data is a safe relevant offers and service is becoming a primary driver
cloud based CRM method that can help every part of of customer satisfaction and retention in financial service
your company get a overall view of your customer. [7].
Retailing occupies an important role in the world of  "CRM is the business strategy that aims to
money-based system. Retailing involves all the actions understand, anticipate, manage and personalize
a minor side effect of sale to final people (who use a the needs of an organization's current and
product or service) for their personal, family, and potential customers" PWC Consulting.
household use. It does this by organizing their  CRM is a business strategy, one that puts the
existence on a (compared to other things) large size customer at the heart of the business.
and supplying them to the people (who use a product or “That‟s nothing new” I hear you say, and you would be
service) on a (compared to other things) small scale. in right. Good business people have always understood the
this paper we will discuss about the retail marketing relationship between happy customers that come back
(success plans/ways of reaching goals) in Big Bazar. again and again and creating long term, sustainable
profitability [10].
Key Words: Customer relationship management, Retail
marketing, customer interaction. Review of Literature:
Customer Relationship Management (CRM) has become
Preface: A Customer relationship managment system one of the most dynamic technology topics of the
[1] is a business tool that allows you to manage all millennium. According to Chen and Popovich(2003),
prospective customers, associates and prospects CRM is not a concept that is really new but rather due to
information all in one place. The Sales data is a safe current development and advances in information and
cloud based CRM method that can help every part of enterprise software technology, it has assumed practical
your company get a overall view of your customer. importance [3]. The root of CRM is relationship
Retailing occupies an important role in the world of marketing, which has the objective of improving the
economic system. Retailing involves all the actions long-term profitability of customers by moving away
incidental to sale to final consumers for their personal, from product-centric marketing.
family, and household use [2-5]. It does this by Cite this article as: Dr.Ch. Chandra Shekar, "A Study on the
organizing their existence on a relatively large size and Customer Relationship Management in Retail Marketing",
International Journal of Research in Management Studies, Volume 4
supplying them to the consumers on a relatively small Issue 1, 2019, Page 13-24.

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Bose (2002) noted that CRM was invented because the approximately the same basic concepts: customer
customers differ in their preferences and purchasing relationships, customer management, marketing strategy,
habits. If all customers were alike, there will be little customer retention, personalization (Zineldin2000).
need for CRM. As a result, understanding customer However, while academics debate the subtitles of
drivers and customer profitability, firms can better tailor various definitions, the practitioners have developed a
their offerings to maximize the overall value of their wealth of applicative papers analyzing the concrete
customer portfolio (Chen and Popovich) . The attention challenges and opportunities of implementing the
CRM is currently receiving across businesses is due to systems (Bacuvier et al. 2001).CRM in some firms is
the fact that the marketing environment of today is considered as a technology solution, considering of
highly saturated and more competitive (Chouet al, individual databases and sales force automation tools
2002). and sales and marketing functions so as to improve
targeting effort [6]. Peppers and Rogers (1999) argued
that other organizations view CRM as a tool, which has
According to Greenberg (2004), CRM generally is an been particularly designed for one-to-one customer
enterprise-focused endeavor encompassing all communications, which is the function of sales, call
departments in a business . He further explains that, in centres or the marketing departments.
addition to customer service, CRM would also
include,manufacturing, product testing,assembling as Accordingly Frow and Payne (2004) added that CRM
well as purchasing, and billing, and human resource, stresses two-way communication from the customer to
marketing, sales and engineering. Chen and Popovich the supplier to build the customer over time. The two-
(2003) argued that CRM is a complicated application way communication has been enhanced greatly by
which mines customer data, which has been retrieved advances in technology particularly the Internet.In term
from all the touch points of the customer, which then of information technology (IT), CRM means an
creates and enable the organization to have complete enterprise –wide integration of technologies working
view of the customers. The result is that firms are able to together such as data warehouse, web site, and
uncover and determine the right type of customers and intranet/extranet, phone support system, accounting,
predicting trend of their future purchases. CRM is also sales, marketing and production [8].
defined as an all embracing approach that seamlessly
integrates sales, customer service, marketing, field Kotler (2000) assured that CRM uses IT to gather data,
support and other functions that touch customers (Chou which can then be used to develop information acquired
et al, 2002) . They further stated that CRM is a notion to create a more personal interaction with the
[4] regarding how an organization can keep their most customer.In the long-term, it produces a method of
profitable customers and at the same time reduce cost, continuous analysis and reinforcement in order to
increase in values of interaction which then leads to high enhance customer‟s lifetime value with firms.
profits. The modern customer relationship management
concept was shaped and influenced by the theories of Goldenberg (2000) believes that CRM is not merely
total quality management (Gummesson) and by new technology applications for marketing, sales and services
technological paradigms (Zineldin, 2000). but rather when it is successfully implemented ; it
enables firms to have cross-functional , customer-driven
There is however, a perceived lack of clarity in the , technology-integrated business process management
definition of customer relationship management, strategy that maximses relationships.
although all accepted definitions are sharing

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Chin et al (2003) stated that due to many technological The line of exchange is known as chain of distribution‖.
solutions available for CRM automation [9], it is often In this final chain, retail is the end point.Retailing
misconstrued as a piece of technology. But they includes all the activities involved in selling goods and
maintained that in recent times many companies have services to the final consumers for personal, non
realized the strategic importance of CRM, and as a personal use. Retailers perform several functions such as
result, it is becoming a business value -effort rather than bulk breaking,assorting, storing, advisory services
technology-centric effort. among others as a part of customer service.
Manufacturers and wholesalers expect retailers to be a
Retailing which has drastically influenced the strategies part of established channel through which customer
of retail management. This has changed the perception, feedback can flow back to them . The authors present the
competitive strategies, distribution systems and fact that retailer is the first contact point that the
promotional strategies that are adopted by the retailers. customer has with the product and therefore this fact
gives him tremendous power . Nair Suja in her
DunneM.Patrick and LufschF.Robert gave a analyzed book ̳Retail Management„ has tried to explain the growth
view that Customer Services include the activities the of retailing in Indian context especially in the context of
retailer performs that influence new economic policy, global economic development,
1.The case with which a potential customer can shop or changes in the marketing and economic system as well
learn about the store„s offerings as changing pattern and classification of economic
2.The case with which a transaction can be completed activity [12].
once the customer attempts to make a purchase
3.The customer„s satisfaction with the product after the The author has tried to stress that there is a significant
purchase. effect of liberalization and privatization policies on
development of retail format. According to author,
These three elements are the pre-transaction, transaction, retailing has come to occupy a prominent position in
post-transaction components of customer services today„s modern society. Inspite of the Indian retail
Rugman and D„Cruz developed a stream of research that revolution, it is said that over 90 percent of the 20
potentially links international business to globalization percent urban India are still towards the traditional retail.
theories, pointing to the essentially, regional‟rather Now some worthy modern organized retail format is
than,global level of activity [11] in the early 21st slowly gaining acceptance and can easily be seen to be
century. This theoretical route again has difficulties emerging as a strong contender. The author has tried to
when applied to retailing because of the different nature make an attempt to communicate various developments
of the international organization of investment in occurring in retail market especially on account of
retailing and the importance of the local market, and evolving consumer behaviour typically the evolution of
adoptions to it, for retailers. The globalization studies retail. It can be studied by having a look at 4 tier
start from an economic perspective, as in Spulber„s component i.e. consumer behaviour, trade structure,
(2007) study of Dairy Farm and so do not address the retailer-distributer-manufacturer relationship and the
issues of social change that have become explicit in the competition. The profile of today„s customer can be
recent activity of international retailers.Dale Gillian and easily described as an affluent one with a higher and
Banfield Graham have introduced the concepts of most disposable income, frequent visits & makes a
distribution and retailing in elaborate manner. longer and investment and time to explore a detailed
Distribution refers to the process of movement of shopping experience [13]. However the consumers have
goods.from the original producer to the final consumer. also revealed a illingness to pay a premium provided

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they are offered better service quality at a retail counter. and Electronic Media will definitely influence the
In addition to these, modern consumers will also multichannel retailing system.
appreciate additional facilities such as ATM, parking
and in -store attendance. The main features of the book Newmen Andrew and CullenPeter in their
includes emphasis on case study of 12 major retail book ̳Retailing: Environment and Operations„ have
format wherein the author has tried to find out what are rightly concentrated on understanding various aspects of
the new trends that are introduced by these various retail Retailing as a Business. They have considered retailing
players, how they influence the overall market structure as a vibrant part of our changing society and major
and the marketing environment in India, how they have source of employment. They have noticed that retailing
changed the retailers approach towards consumers and is closely tied to the changing moods of the consumers
how consumers have responded to these new changes in and new ways of business, spread on by the impressive
the growing context of economic development. development in Technology and Management Theory.
The book provides a comprehensive grounding in many
David Gilbert is one of the noted authorities who in his facets of retailing, including Logistics and Distribution,
book titled ―Retail Marketing Management‖ have erchandising, Store Layout and design, pricing and
identified the reasons of growth of Modern Retailing. In location strategy.
this book he has tried to find out why the growth of
retailing is actually taking place. According to him more The authors have included new areas of importance
than any other business we are witnessing the emergence which includes retail services and out of store retailing.
of new forms of retailing and becoming more segmented The authors have tried to understand what are the ways
with reforms focusing on the needs of particular and means because of which retailing is growing in a
consumer segment. The result of this is the development global scenario? How it has influenced non-formal ways
of more consumer friendly environment [14].Whereas, of trading? And what are the implications of new format
once it was manufacturers brand that were all important. of retailing on consumer behavior? In this book the
The year 2000 has witnessed the power of retailers brand authors have also tried to find out the different market
challenging the position of suppliers. The traditional structures that are required for retail operations and
forms of independently owned small business and co- managing in the times of booms and slumps. This helps
operative have lost significant market share in developed the readers to understand different facets, challenges and
economy and the retail sector is now characterized by changes that are happening in the retail environment.
large scale,multiple store, run by powerful and
sophisticated organizations. The increasing size of Hamilton Ryan in their research paper majorly focused
retailers and intensifying rates of competition in the on the important decision that retailers always involves
markets in which they are operating has made retailers to in selecting the number of items constituting their
search for new ways to grow their business. The author assortments. A key issue in making these decisions is the
has tried to emphasize on two facts: First, retailing has role of assortment size in determining consumers„ choice
become a major avenue of growth and the increase in the of a retailer. The authors address this issue by
retail operations has changed the market dimensions. investigating how consumer choice among retailers
offering various-sized assortments is influenced by the
Second thing, there is an impact of E-retailing which attractiveness of the options constituting these
attracts considerable attention.However, though initially assortments. The data show that consumer preference for
it may not be successful but in the due course of time retailers offering larger assortments tends to decrease as
successful models for retail sectors based on E-business the attractiveness of the options in their assortments

Page 16
increases and can even lead to a reversal of preferences Randall , have written that retailers face considerable
in favour of retailers offering smaller assortments. This risk in introducing new products because of high failure
research further presents evidence that the relationship rates. Given the proliferation of new products juxtaposed
between assortment size and option attractiveness is against finite shelf space, retail buyers are confronted
concave, such that the marginal impact of assortment with a choice problem. To enhance understanding of this
size on choice decreases as the attractiveness of the issue, the authors examine the role of buyer–salesperson
options increases. Data from eight empirical studies and firm–firm relationships using data collected in the
offer converging evidence in support of the theoretical context of actual new product selection by retail buyers
predictions [15]. at two large grocery retailers in the United States. The
findings indicate that buyer–salesperson and firm–firm
Bradford Kevin., Stringfellow Anneand Weitz Barton A relationships have a greater influence on new product
had written that the retailers are becoming involved with acceptance when a new product„s attractiveness is
networks consisting of multiple firms in order to more modest than when the new product is very unattractive
effectively perform business activities such as supply or very attractive. At modest levels of product
chain management. This research develops and tests a attractiveness, the likelihood of new product acceptance
framework outlining the effects of conflict in networks can increase by as much as 60 percent when the buyer
and how conflict management can mitigate and has a strong relationship with the salesperson. The paper
exacerbate these effects. A study of simulated networks provides insights into the complex interplay of
finds that inter-personal and task conflict have a negative marketing relationships and product attractiveness in
effect on network member satisfaction and desire to be a retail buyers„selection of new products. Raff Horst and
member of the network. The use of a collaborative Schmitt Nicolas investigated the implications for
conflict management style has a positive effect on international markets of the existence of
satisfaction and desire for continuity, but the effects of retailers/wholesalers with market power.
accommodative and confrontational styles depend on the
level of inter-personal and task conflict present in the Two main results were shown. First, in the presence of
network. buyer power, trade liberalization may lead to retail
market concentration. Due to this concentration, retail
Kaltcheva Velitchka developed the conceptual prices may be higher and welfare may be lower in free
framework which proposes that the consumer„s trade than in autarky, thus reversing the standard effects
motivational orientation moderates the effect of the of trade liberalization. Second, the pro-competitive
arousal produced by a store environment on the effects of trade liberalization are weaker under buyer
pleasantness of the environment. When consumers have power than under seller power. Buchanan, Simmons and
a recreational motivational orientation, high arousal has Barbara highlighted that consistency among the various
a positive effect on pleasantness, but when consumers elements of a marketing program believed essential in
have a task-oriented motivational orientation, high building and maintaining brand image and equity. And
arousal decreases pleasantness. In addition, high arousal yet, a brand„s ultimate presentation to customers is
increases consumer intentions to visit and make controlled more often by the retailer than by the
purchases in the store for recreationally oriented manufacturer. The retailer„s display decision can negate
consumers, but it has a negative impact on shopping the equity of an established brand. The author suggests
behavior for task-oriented consumers. Pleasantness that this occurs because consumers have expectations
mediates the effect of arousal on shopping about retail displays and the relationship among
behavior.Kaufman Peter, Jayachandran Satish and Rose displayed brands [5-8].

Page 17
Display conditions that disconfirm these expectations brand building. And retailers, in turn, have to focus on
can lead consumers to re-evaluate the brand.Ganeshan the quality of the shopping experience.
focused on the impact of four staffing policies
(promotion from within, promotion through seniority, In this millennium, like in the last, customers will want
well -defined career paths, and opportunity for intra- to spend time with their family and friends. They may
organizational mobility) on the job attitudes and like to visit an outlet on weekends where everything will
behaviors of retail employees. be available under one roof. India will benefit from these
developments because of increased consumption through
Staffing policies significantly affect the buyers„ intrinsic retailing and the corresponding increase in employment
motivation and commitment to their firms. Commitment created by retailing.
and intrinsic motivation, in turn, have a strong effect on Retail organizations exhibit great variety and new forms
a buyer„creativity, risk-taking behavior and intention to keep emerging. There are store retailers, non store
leave organization. retailers, and retail organizations.

Need for the Study: The customer relationship Consumers today can shop for goods and services in a
management is important factor for every organization. wide variety of stores. The best-known type of retailer is
In this paper we will discuss about CRM in retail the department store. Japanese department stores such as
marketing sector taking case study on BIG BAZAR. Takashimaya and Mitsukoshi attract millions of
shoppers each year. These stores feature art galleries,
Objective: The main objective of this paper is to study cooking classes, and children‟s playgrounds.
the CRM IN RETAIL MARKETING in BIG BAZAR.
The success of the retail stores, therefore, depends on
Methodology: This paper mainly based on secondary customers‟ reaction to the retailing mix which influences
data The articles which are published in the area of CRM the profits of the store, its volume of turnover, its share
IN RETAIL and information from bigbazar website. of the market, its image and status and finally its
survival.
Indian Consumers:
And even as these developments were taking place, the Trends In Retail Marketing
Indian consumer became more mature. Customer- At this point, I can summarize the main development
expectations zoomed. Thus, at the beginning of the New retailers and manufacturers need to take into account as
Millennium, retailers have to deal with a customer who they plan their competitive strategies.
is extremely demanding. Not just in terms of the
product-quality, but also in terms of service, and the In India the trends are mainly in three sectors. These
entire shopping experience. sectors are:

Today, the typical customer who shops in a retail outlet Trends in retail marketing
compares the time spent at the check-out counter with
that at an efficient petrol station, and the smile of the
counter-person to that decorating the face of a Jet
Airways' crew member. To cope with the new customer,
manufacturers have to focus on product quality and

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New retail forms and combinations continually emerge. to Customers within stores. They are adopting checkout
Bank branches and ATM counters have opened in scanning systems, electronic funds transfer, and
supermarkets. Gas stations include food stores that make improved merchandise-handling systems [5]
more profit than the gas operation. Bookstores feature
coffee shops. Retail Marketing In India
There are various ways of making goods available to
The electronic age has significantly increased the growth consumers like:
of non store retailing consumers receive sales offers in  Company to distributor to wholesaler to retailer
the mail and over television, computers, and telephones, to consumer
to which they can immediately respond by calling a toll-  Company to salesperson to consumer
free number or via computer.  Company to consumers (online/ phone/ catalog
Competition today is increasingly intertype [13], or ordering)
between different types of store outlets. Discount stores, These three are among the most common ways of
catalog showrooms, and department stores all compete making the goods available to consumers. But in India
for the same consumers. The competition between chain the three layered system of distributor, wholesaler and
superstores and Smaller independently owned stores retailer, forms the backbone of the front-end logistics of
have become particularly heated. Because of their bulk most of the consumer-good companies.
buying power, chains get more favorable terms than There are a number of reasons behind this fragmented
independents, and the chains‟ large square footage retail market. Some of the major reasons being:
allows them to put in cafes and bathrooms.  Poverty and lower literacy levels.
 Low per capita income.
Today‟s retailers are moving toward one of two poles,  Savings focused and less indulgence mindset.
operating either as mass merchandisers or as specialty  Poor infrastructure facilities like roads etc.
retailers. Superpower retailers are emerging. Through
 Restrictions on intra-state good movement.
their superior information systems and buying power,
 High taxes.
these giant retailers are able to offer strong price savings.
 No exposure to media.
These retailers are using sophisticated marketing
 High import duties on imported goods.
information and logistical systems to deliver good
service and immense volumes of product at appealing  FDI in retailing is not allowed.
prices to masses of consumers.
CRM in Retail Marketing (Big Bazaar):
Many retailers are even telling the most powerful Customer relationship activities have the most impact on
manufacturers what to make; how to price and promote; customer retention Every customer service encounter has
when and how to ship; and even how to reorganize and the potential to gain repeat business or have the opposite
improve production and management. Manufacturers effect The expectation of personalized, relevant offers
have little choice: They stand to lose 10 to 30 percent of and service is becoming a primary driver of customer
the market if they refuse. satisfaction and retention in financial service.
 "CRM is the business strategy that aims to
Technology is becoming critical as a competitive tool. understand, anticipate, manage and personalize
Retailers are using computers to produce better the needs of an organization's current and
forecasts, control inventory costs, order electronically potential customers" PWC Consulting .
from suppliers, send e-mail between stores, and even sell

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  CRM is a business strategy, one that puts the First Things First
customer at the heart of the business. Successful CRM always starts with a business strategy,
 “That‟s nothing new” I hear you say, and you which drives change in the organization and work
would be right. Good business people have processes, enabled by technology. The reverse rarely
always understood the relationship between works. The key here is to create a truly Customer-
happy customers that come back again and again Centric philosophy that touches every point and more
and creating long term, sustainable profitability. importantly every person in the company. From CSR to
Big Bazaar has realized this and applied this to CEO everyone must live and breathe customer focus for
effect. all of this to work

One just needs to think of the local shop owner who The Right Technology
knew everyone of his customer‟s names, birthdays and It is estimated that the global market for CRM services
particular ailments to prove that point. What is new is and solutions is currently worth $148 billion. That
that there now exists the technology to enable this means a lot of choice when selecting your technology -
customer-centricity on a much larger scale. from web-based solutions aimed at small businesses
(“Come To Big Bazaar- Isse Sasta Aur Achha Kahin with less than 10 employees to solutions suitable for
Nahin”) It is said that a successful CRM multi-national enterprises with millions of customers.
implementation will allow your Customer Service, Sales
The Future
and Marketing people (and anyone else in your
CRM has already made a big impact in the world of
organization) to have a holistic view of each and
Customer Service and will continue to do so. As more
everyone of your customers. In theory this will enable
and more companies become customer-centric those that
them to make quick, informed decisions, create cross
fail to do so will lose competitive advantage. As
selling and up selling opportunities, measure marketing
technology increases to develop at a startling rate the key
effectiveness and deliver personalized Customer Care.
emphasis will be how we can fully utilize it within our
Sound‟s great doesn‟t it
business.
The History of CRM However let's not lose sight of the fact that Customer
Following on from Enterprise Resource Planning or ERP Relationship Management is about people first and
(the business strategy that promised to automate the technology second. That‟s where the real value of CRM
“back-office”), the term CRM was first coined in the lies, harnessing the potential of people to create a greater
mid-1990s. CRM in those days referred to the software customer experience, using the technology of CRM as
used to help businesses manage their customer the enabler.
relationships. From sales force automation software
(SFA) that focused on customer contact management to Using CRM, at the management of Big Bazaar can:
integrated knowledge management solutions, these were  Provide better customer service
the early foundations of CRM.  Increase customer revenues
 Discover new customers
The last couple of years have seen the term broaden to
 Cross sell/Up Sell products more effectively
encompass a more strategic approach and the investment
 Help sales staff close deals faster
of billions of dollars worldwide into CRM solutions and
 Make call centers more efficient
services has followed

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Simplify marketing and sales processes Customer Satisfaction their Top Priority
By applying this methodology Big Bazaar learned more Don't just make sales. Create customers - satisfied
about customers' needs and behaviors in order to develop customers. In addition to the immediate profit they
stronger relationships with them. They implemented provide on the first sale, satisfied customers help you
CRM as a process that brought together lots of pieces of build your business in 2 other important ways:
information about customers, sales, marketing 1. They become a reservoir of repeat buyers. For some
effectiveness, responsiveness and market trends. businesses that means repeat buyers for more of the
same product or service. For every business, it means
CRM helps businesses use technology and human buyers for additional products and services.
resources to gain insight into the behavior of customers 2. They automatically refer more business to you from
and the value of those customers [12]. their friends and business contacts. This is highly
profitable business for you because it doesn't cost you
Challenges For Big Bazaar in CRM implementation: any time or money to get it.
 Difficulty in acquiring new customers can be a
result of any one, or combination, of the Whatever they Promise More, they Deliver
following problems. Never make any promises you can't (or won't) keep.
 Inaccurate and Slow Quoting Organizations may Nothing alienates customers faster than getting
be unable to accurately estimate and quickly something less than they expect from a business
deliver successful proposals, often leading to transaction. They won't do business with you again. And
missed opportunities, bad profit margins and they will tell everybody they know about their unhappy
upset prospects. experience - causing you to lose future customers.
 Lack of Product Knowledge Within their Sales
Force Always Give Customers More Than They Expect
 Problems can arise when products were sold that "Over deliver" on quality and service. Always exceed
didn‟t fit company's profitability strategy such as your customers' expectations. You will win their long
selling a customer one product when another term loyalty. It also makes it difficult for competitors to
would be better for the customer and more steal customers from you - even if they have lower
profitable for you. prices. Customers will not risk an uncertain experience
 Difficulty and Delay in Updating Pricing and with a competitor when they know they will get more
Product Information than they expect from you.
 When the sales force is relies on incomplete
product, pricing and customer information, then Customers know how much they value them:
they're probably not selling the most profitable Let your customers know you are always thinking about
products you offer. them. Communicate with them regularly. For example,
 Customers prefer a combination of differing create some special deals just for your existing
channels in which to deal with your company. customers. And announce new products or services to
them before you announce them to the general market.
Self-service on the web can even be done for
complex products. Plus, self-service on the web
offers retail banks the opportunity to shift cost PROCESS OF CRM
out to the customer. Customer Relationship Management (CRM) is the
process of bringing the customer and the company closer
together. There are many different areas in which

Page 21
Customer Relationship Management can be by carefully designing the sets of alternatives that their
implemented. The goal of CRM is to help a company customers consider.
maintain current customers, as well as gain new
customers. Floor Displays:
Buyers are averse to choosing the lowest-quality
Targeted Marketing: Targeted marketing is alternative in sets of three or more choices. One of the
accomplished through collecting information about the implications of this finding is that marketers of well-
customer. This information can be buying habits or known, high-priced brands should encourage retailers to
simply demographics. The idea behind this is that a organize floor displays by model type, whereas
business analyzes what a customer buys and then marketers of lesser-known, lower-priced brands should
markets specific products to that customer based on his prefer organization by brand.
or her buying habits. Businesses track buying habits
using discount cards, and special store credit cards. Brands:
Consumers who think about the possibility that their
Targeted marketing can also be implemented on the purchase decisions will be wrong are more likely to
Internet. Amazon.com has product recommendations choose better known brands. In a test case, Simonson
based on buying habits, and product ratings. Customers showed that consumers debating between a better
can also be sent e-mails that market targeted products. known, more expensive brand and a lesser-known, less
Marketing the right products to the right customers can expensive brand expect to feel greater regret if they err
significantly increase a business' sales with minimal by choosing the cheaper option. Indeed, after thinking
associated costs. about the possibility of regret, consumers were more
likely to select the better-known brand. Kodak film has
CONSUMER BEHAVIOR capitalized on this finding with an advertising campaign
Options: that asks consumers to consider how they would feel if
Consumers are more likely to choose an alternative after they bought cheap film and their pictures didn't turn out.
a relatively inferior option is added as a choice. For
example, Simonson says, participants in one study were Preferences:
given a choice between $6 and an elegant Cross pen. A Consumers tend to select variety when buying multiple
second group chose among $6, the same Cross pen, and products for consumption at a later time. In each of three
a second pen that was clearly less attractive than the weeks, Simonson asked a group of respondents to select
Cross pen. As was predicted, the addition of the one of six familiar snacks for immediate consumption. A
unattractive pen increased the share of the Cross pen at second group was asked to pick three snacks -- one for
the expense of the $6. immediate consumption and one for each of the next two
weeks. Both groups were told that they could pick the
Alternatives: same snack as many times as they wished. Those in the
Consumers prefer alternatives that are compromise first group tended to select the same snack all three
choices. Given a choice between two alternatives, one times, whereas most in the second group selected three
priced lower than the other, the addition of a third different snacks.
choice, priced higher than both, will increase the market
share of the more expensive of the original two. This Product Modifications:
finding suggests that companies can increase their Modifying a product with a feature or premium that is of
overall sales and shift purchases to higher-margin items little or no value to the consumer, even without raising

Page 22
the price, may actually decrease sales. When consumers shown substantial retail presence. Most sport
are uncertain about their preferences, a product that modern retail formats like supermarkets,
offers an unneeded add-on (such as an offer to purchase department stores and specialty chains. These
a Pillsbury Doughboy collector's plate) provides them markets are expected to show exponential
with a reason for rejecting it. growth in the next few years. Thus Food Bazaar
has the opportunity to explore new markets
While marketing professionals can use these findings to  According to the Consumer Outlook study,
influence consumer decision making, consumers, too, consumers are generally satisfied with the
can benefit by understanding their own behavior. "One service that organized retailers extend to them.
of the points of our research is to inform consumers More importantly, they are increasingly
about some of the factors that influence their decisions," regarding these organized retailers as providing
Simonson says. "With such knowledge, they may be able `value-for-money‟. These findings indicate that
to make better, more thoughtful decisions." large retailers will capture most of the higher
consumer spending
SWOT Analysis of Big Bazaar  Increasing penetration of the internet into Indian
Strength homes has provided Food Bazaar Mall to break
 Prime location the geographical barriers and to increase their
 Large floor space allowing for better visual customer base. The entry into online retailing,
merchandising would, in fact, expand the product categories
 Large area also allows to stock a large variety of available to the consumer
products under one roof Threats:
 Experienced and competent management  The time when retailers had to worry about
 Highly trained and motivated sales force competition only from their peers down the
 Brand equity street has come to an end. Food Bazaar is now
 Large scale operations in various cities facing increased competition in the form of
throughout the country allows them to reap the international retail chains that are making a
benefits of “economies of scale” beeline towards the highly potential Indian
Weakness markets. Moreover many big Indian business
 Large scale of operations sometimes acts as a houses are also vying a space in the Indian retail
barrier to personalized customer relations scene.
 Large scale operations lead to reduced flexibility
by increasing the amount of overheads and a Conclusion:
huge commitment in terms of fixed costs Customer Relationship Management is one of the
 A large organization structure leads to delayed important factor in the present competitive world every
company has to maintain their customer (computer file
decisions. This can prove fatal for a business in
the dynamic fashion industry. Mumbai, this fact full of information) for customer keeping/holding
onto/remembering so Big Bazar focuses on aims to
sometimes results in delayed decisions in
adapting to changing market trends understand, expect/look ahead to, manage and decorate
(with a personal touch) the needs of an organization's
Opportunities
current and possible customers. By providing options,
 Apart from the metros, cities like Ahmadabad,
other choices, floor display, brands. Preferences, Product
Pune, Lucknow, Indore and Coimbatore have
change.

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