The Factors That Influence the Consumer in Choosing Departmental Store in Bangladesh

Topics: Regression analysis, Linear regression, Marketing Pages: 16 (4003 words) Published: February 13, 2011
Chapter 01


City life is changing day by day. People are experiencing more and more changes and developments. People from diverse walks of life are also settling themselves with the growing pace. For the marketer, it has become a great opportunity to understand the actual needs and wants of the population and while providing them with the commodities, the service industries are also going through tremendous changes. The Chain Superstores are now a growing phenomenon in Dhaka city. As the customers are increasingly becoming more aware of the conveniences and their own lifestyles, they are in many cases preferring to go to a Chain Superstore for their everyday shopping rather than to small departmental stores around. This research has been conducted to identify the Factors influencing consumers to shop Superstore in Bangladesh- in specific six probable extrinsic cues. The six extrinsic cues- Brand Image, Perceive Price, Perceived Quality Product Availability, Location of the store and Environment were tested to see if they have any positive influence on customers’ decision making to go shopping from a Chain Superstore. The study illustrates the various responses from the survey respondents which were later used as input for further data analysis to get the statistical output of the research. This research has identified certain important findings both for market researchers as well as students involved in academic researches. The research can be used for the basic understanding of the market dynamics when it comes to the consumers’ influencing factors on Chain Superstores.


Supermarket biggies have attempted a massive expansion drive to catch up more shoppers who still depend on unorganized wet markets to buy their essentials. According to analysts, the rise in supermarkets will diversify consumer choices and boost consumer spending needed for economic growth, while the wet markets will also witness an improvement in quality and services on increased penetration of supermarkets. A chain superstore is a group of large stores owned by one firm and spread nationwide or worldwide, selling a variety of food and household items to customers. There are already around 50 chain supermarkets operating in Bangladesh while 29 more retail chain outlets are expected to come up this year, according to Bangladesh Supermarket Owners Association. A decade ago, the trade was in the hands of thousands of small retailers in the wet markets and grocery shops in cities and remained out of the focus of business conglomerates. The landscape began to change after 2000 as Rahimafrooz Superstores, operating company of Agora, began to catch up a slice of retailing and wholesale trade. In the last eight years, many small and big supermarkets made debut in the trade to attract middle and upper middle class consumers, a section of who are shifting to the chain Stores from the wet or kitchen market. Supermarket offer to its consumer’s hygienic foods at competitive prices compared to those of unorganized retailers in the kitchen markets where commodities are sold mostly in unhygienic manner. The reason of shifting consumers from kitchen market to superstore are, they want to spend less time in shopping variety of products from different shops. The other reasons are the changes in their lifestyle, preferences, product availability, perceived quality, brand image, perceived price, etc. This research will find out the significance of sis extrinsic cues – Brand Image, Perceived Price, Perceived Quality, Product Availability, Convenient location and Environment and how customers’ choose a supermarket based on those cues.

1.2Problem definition

The objective of the research is to find out what are the factors that influence the consumer in choosing DEPARTMENTAL STORE IN BANGLADESH. To identify the possible factors at first I have go through an Exploratory (Qualitative) marketing research to identify some necessary steps...
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