Consumer-small retailer relationships in Indian retail

Abstract

Purpose – The purpose of the study was to understand influence of assortment, store facility, service and relationship on Indian consumers’ small retailer patronage behaviour. The determinant of small retailer–consumer relationships was studied. Design/methodology/approach – Indian consumers were contacted through retail stores intercept method and requested to participate in the survey (n = 321). The questionnaire was adapted from the research conducted by Lee et al. (2008) and modified (some items on relationship were added). ANOVA and multiple regression tests were used to analyze the data. Findings – The Indian consumers’ prefer small retailers due to assortment, service, store facility and relationship. The older and younger populations differ in their reasons for preferring small retail stores. The results show that service and assortment influence consumer-small retailer relationships. Practical implications – The small retailers’ can harness the relationship and social interaction attribute of their service package for defending their turf against organized retail. The fast-moving consumer goods companies can use the competitive strength of small retailers for increasing their distribution in the interiors of the country and understanding market demand. Originality/value – There is limited research in India to understand competitive advantage of small retailers over organized retailing.

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