Table of Content

Sl.No. Content Pg. No.

1 Introduction 7 – 10
2 Literature Review 11 – 16
3 Research Methodology 17
4 Data Analysis & Interpretation 18 – 30
5 Findings 30 – 31
6 Recommendation/Suggestion 31
7 Conclusion 31 – 32
8 Bibliography 32
9 Annexure 1 33 – 35
10 Annexure 2 36 – 37

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 1. Introduction

1.1 Industry overview – Organized Retail

The Indian retail industry has emerged as one of the most dynamic and fast-paced industries
due to the entry of several new players. India is the world’s fifth-largest global destination in
the retail space.
India has replaced China as the most favourable market for retail expansion, supported by a
fast growing economy, increasing consumption rates, rising urbanizing population and a
flourishing middle class.

1.2 Recent Growth in the Organized retail industry in India

Total consumption expenditure is expected to reach nearly US$ 1.1 Trillion by 2020 from
US$ 1,824 billion in 2018. It accounts for over 10 per cent of the country’s Gross Domestic
Product (GDP) and around 8 per cent of the employment.

1.3 Organized Retail Growth prospect in India

Source: www.ibef.org

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1.4 Company Profile – D-mart
DMart is a chain of hypermarkets in India founded by Radhakishan Damani in the year
2002. As on 1st of April 2019, it has more than 130 stores across India in the states
of Maharashtra, Andhra Pradesh, Telangana, Gujarat, Madhya
Pradesh, Chhattisgarh, Rajasthan, National Capital Region, Tamil Nadu, Karnataka, Uttar
Pradesh and Punjab.

DMart is promoted by Avenue Supermarts Ltd. (ASL). The company has its headquarters in
Mumbai.

After the IPO listing (as Avenue Supermarts Ltd.), it made a record opening on the market on
the National Stock Exchange. After the close of the stock on 22 March 2017, its market value
rose to ₹39,988 crores. This pegged it as the 65th most valuable Indian firm, ahead
of Britannia Industries, Marico and Bank of Baroda.

As of 16 September 2018 the market capitalization of D Mart is close to ₹95,000 crores. This
is 33rd rank for all listed companies in Bombay Stock exchange
Source: http://www.blog.sanasecurities.com

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1.5 D mart current trends

D mart is India’s most valuable retailer is choosing to veer away from its time-tested
business rules as it chases growth. Avenue Supermarts Ltd, owner of D-Mart, is looking to
accelerate profit and revenue growth by opening 30 stores annually from an average of 20
stores in the last two fiscals. For this, it is willing to compromise on certain basic belief of
its business such as owning its stores and focusing only on brick and mortar.

D mart is best known for its “everyday low cost, everyday low price" strategy, allowing it to
extend near-permanent discounts to customers on a daily basis. This helps it to churn
inventory quickly and aids profitability

Revenue - Rs.11,881cr.

Operating Profit - Rs.995cr.

Profit After Tax - Rs.483cr.

131Stores in 10 Indian States and 1 Union Territory

4.06mn sqft Retail Business Area

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Above maps show the increase in physical footprint of D mart retail stores in India over the
time period of 2002 - 2017They increased their stores from 1 store in 2002 to 131 stores in
2017 now they are planning to expand their stores by 31 in 2018-19

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 2. Literature Review

2.1. FACTORS AFFECTING IMPULSE BUYING BEHAVIOUR OF CONSUMERS AT

MALL

Today, retailers are increasingly making use of various in-store influencers for converting
browsers to spenders. However, success depends on how the customers perceive these
influencers. The phenomenon of impulse purchasing has been studied in consumer research as
well as for example in psychology and economics since the 1950s. In brick-and-mortar retailing,
impulse purchases have been an important source of revenue for retailers. This study
attem|influence their potential consumers through creating enjoyable, attractive and modern
looking environments.
The recent researchers have also found that demographic variables like age, gender, marital
status; income have an important impact on impulsive buying behaviour. The logical sequence of
the consumers’ actions is replaced with an irrational moment of self-gratification. Impulse items
appeal to the emotional side of consumers. Some items bought on impulse are not considered
functional or necessary in the consumers' lives.

Published by:- Desai Preyal Sharadakumar

Published on may, 2016

2.3 A study on influencing impulsive buying behaviour

This paper is an attempt to find the variables/factors that effects customer impulse buying
behaviour, the impact
of various impulse buying factors like sales and promotions placement of product of product,
window
merchandising, effective price strategy ect on customer impulse buying behaviour has been
analysed. This study is based on the primary data collected from Salem city. Data analysis has
been done using SPSS software. After the thorough analysis of the available data it has been
found out that since income of individual is increase and more and more people are moving
towards western culture in dressing sense, in eating etc. so the purchasing power of the people has
really gone up and thus the impulse buying of the commodities is on a great increment
mainly due to price strategies.

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Keywords: Impulse buying, buying behaviour, promotions

Published by:- P Kannan, A.Vinayagamoorthy

Published on:- July, 2014
ISSN – IJMSRR

2.4 A Review of impulsive buying behaviour

Researchers and Practitioners have been interested in the field of impulse buying for the past sixty
years (Clover,1950; Stern, 1962; Rook, 1987; Peck and Childers, 2006; Chang et.al, 2011). The
purpose of this paper is to provide a detailed account of the impulse buying behaviour by
compiling the various research works literature in the field of Retailing and Consumer Behaviour.
It gives a broad overview of the impulse buying construct and the various behaviour related
aspects. A wide range of journal databases and books were referred to review the works of
various researchers. The content analysis of the various research works led to the classification of
literature into different factors influencing impulse buying and further development of research
framework. The multiple aspects of the subject are categorized for future research works in the
area of impulse buying with the suggestions. The paper will be useful for marketing practitioners
and researchers towards comprehensive understanding of the consumer’s impulsiveness.

Keywords: impulse buying, impulsiveness, online impulse, consumer behaviour, hedonic

motivation, retailing

Published by – G. Muruganantham, Ravi Shankar Bhakat

Published on – April, 2013
ISSN – 1918 – 719X

2.5 An Empirical Study of Consumer Impulse Buying Behavior in Local Markets

This paper investigates the relationship between independent variables which are shopping
lifestyle of consumers, fashion involvement of consumers, pre-decision stage and post-
decision stage of consumer purchase behaviour with the attitudinal and behavioural aspects of
impulse buying behaviour. This study attempts to explore the association exists between the
variables involved, by tapping the responses of 165 respondents from higher income group in
the area of Rawalpindi and Islamabad. The major findings of the study demonstrated an
overall weak association of the set of independent variables with the dependent variable but,
the in-depth analysis found that pre-decision stage of consumer

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purchase behaviour is the only variable that resulted into strong association with the impulse
buying behaviour. It’s true that young people more often get attracted to products displayed
on store shelves and has greater tendency of impulse buying behaviour but results of this
paper showed no association of impulse buying in higher income group of young people
having prevalent impulse buying tendencies. This study reported new evidences in the field
of impulse buying behaviour of consumers pertaining to the local markets of the twin cities of
Pakistan.

Keywords: Shopping lifestyle, fashion involvement, pre-decision stage, post-decision stage,

Impulse buying behaviour, Pakistan.

Published by – Muhammad Ali Tirmizi, Kashif-Ur-Rehman, M. Iqbal Saif

Published on – 2009
ISSN – 1450 – 216X

2.6 IMPULSE PURCHASING BEHAVIOR: A STUDY OF ORGANIZED RETAIL

OUTLETS OF LUDHIANA
Today, retailers are increasingly making use of various in-store influencers for converting
browsers to spenders. However, success depends on how the customers perceive these
influencers. The phenomenon of impulse purchasing has been studied in consumer research
as well as for example in psychology and economics since the 1950s. In brick-and-mortar
retailing, impulse purchases have been an important source of revenue for retailers. This
study attempted to investigate the relationship of various factors, with impulse buying
tendency of consumers in the Organized Retail Sector of Ludhiana region. This article
empirically evaluates the perception of the customers towards various in-store stimuli that is
Merchandise, promotion, displays and ambience, across
stores located in Ludhiana.

Key words: Impulse Purchasing, Organized Retail

Published by – Gunsagar Singh

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2.7 Impact of Impulsive Personality Traits and Store Environment on Impulse
Buying Behaviour

This study was aimed to understand and asses the role of store environment, impulsive
buying personality traits, impulsive buying tendency, and urge to buy on impulsive buying.
Data was collected from 203 respondents and analysed using AMOS 22.0 software. SEM
technique was used to find the positive association between impulse buying tendencies and
urge to buy. The most important finding of this study was that store environment plays an
important role that leads to such instinctive buying tendencies.

Keywords: Impulse buying, impulsive buying behaviour, ward store environment, impulse
buying tendency, impulsive buying personality traits, urge to buy, structural equation
modelling.

2.8 A COMPARITIVE STUDY OF SERVICES: Quality of D mart and Apna Bazar

This study attempts to find out whether retail outlets like D Mart and Apna Bazaar differ in
terms of service quality. Existing research indicates that consumers are satisfied with the
store's service quality. Service quality is perceived as a tool to increase value for the
consumer; as a means of positioning in a competitive environment to ensure consumer
satisfaction, retention and patronage. Despite its strategic importance, the Indian retailers do
not have an appropriate instrument to measure service quality. This study examines the Retail
Service Quality Scale (RSQS) developed in the US for applicability to the Indian retail
market. The data collected from 140 adult shoppers in large supermarkets namely D'Mart and
Apna Bazaar in Vashi and Nerul of Navi Mumbai indicates that RSQS can be used to assess
overall service quality levels and for tracking overall improvements over a period of time. It
is observed from the factor analysis that there are five factors which define service quality in
the retail outlets: personal interaction, appearance, reliability, problem-solving and policy.
The study also finds the reliability of all the factors and the mean service quality levels of
D'Mart and Apna Bazaar. However, the different dimensions of service quality are not clearly
identifiable.

Published by: IUP journal of Management Research

Published date: April, 2010

ISSN – IJMR-11004
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2.9 D mart – India’s Walmart

Feinberg, Sheffler, Meoli and Rummel considered the social stimulation

provided by malls, finding that the mall served as an outlet for social behaviour.
Further examination of this issue studied the similarities and differences between mall
entertainment seekers and
mall shoppers. Their results supported hypotheses that there are different motivations
for individuals who visit a mall for entertainment activities versus those who visit for
shopping purposes.
in his study considered several characteristics of shoppers - such as
functional shopping motivation, deal proneness, recreational shopping motivation,
age, income and family size, to be a significant influence on mall shopping
frequency.

Published by –

Feinberg, Sheffler, Meoli and Rummel

Published in 2011

2.10 Effect of Socializing on impulse buying

Jackson in his study observed that malls have become the place where senior
citizens walk in comfort and security, where parents lead their young to Santa
Clauses, where singles court, where teenagers socialize and where everybody
consumes. Indeed a new term, “Mall Rats” has been coined to describe the legions of
young people who spend their free time cruising indoor corridors. This proliferation
of uses and of customers has led to the frequent observation that regional malls are
the new downtowns, the centers of informal social interactions, the successors to the
traditional marketplace.

Published by-

Jackson

Published in 2012

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 3. Research Methodology

3.1 . Title of the Project

“Factors affecting level of impulsive buying while shopping at D-mart”
3.2. Problem Statement
To understand how D mart is Taking advantage of customers impulsive buying
behaviour and continuously enhancing the selling strategy which increases the
irrational buying behaviour of customers.
3.3. Objective of the Research
The main objective of the report is to analyse the factors influencing level of impulse buying in
customers while shopping at D mart
1. To analyse the factors influencing customers to demonstrate impulsive buying.
2. To study effect of attractive pricing on impulse buying
3. To analyse how various promotional offers affect impulse buying
3.4. Types of Research

Descriptive Research – includes survey and fact-findings on various aspects influencing

consumers to do impulsive buying while shopping at D mart.
3.5. Data collection method
Primary data is collected by Survey & Questionnaire
Secondary data is collected with the help of EBSCO, GOOGLE Scholar, SCRIBD and Research
Gate
3.6 Sampling Plan
Sample Size taken – 80
Sample Profile – Students and Professionals
Sampling Technique – Stratified Sampling

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 4. Data Analysis and Interpretation
4.1_Secondary Data analysis
Swot analysis of D mart
D mart is a supermarket and hypermarket retail chain that is based out of India. The chain which
is a multi-category retailer offers a wide range of products under its umbrella. Some of the
categories it deals with include consumer goods, groceries, personal care products, home care
solutions, deli, kitchenware, furniture and home appliances.
The company was started by Mr. Radhakishan Damani with the objective of offering value-
based products to families across the country at affordable rates. The retailer is said to be
modelling itself on Big Bazaar and follows similar pricing strategy. The company that is
headquartered in Mumbai also sells a lot of its private labels such as D Mart Premia and D Mart
Minimax.

Strength analysis of D mart

Focus on long-term: Damani, the founder of D Mart is an investor and thus the company has
been focused entirely on long-term gains. This has made the company maximise its returns
through a value is driven pricing strategy. Slow scaling up: D Mart started off on a very low
key note and slowly took its time to move up the ladder. This gave the company a better control
and deeper understanding of its supply chain and also helped them manage the bottom line
better. People-centric management style: D Mart has a very good employee policy in place and
is very transparent in its employee relations. They also have a good relationship with vendors
and suppliers and the stakeholders are happy. Discount Policy: One factor that delineates D
Mart from its competitor is its huge discount policy. The retailer sells essential goods at a flat
discount price which most competitors cannot match and this helped them penetrate the market.
Clear price based differentiation : D Mart never followed the trends set by other competing
retail brands but believed in setting their own trends. They captured the market through a clear
price based differentiation and priced their goods at significantly lower prices than competitors.

Weakness analysis of D mart

Focus on certain places: Quite unlike their competitors, who are present everywhere, D Mart
has focused more on the Western States and has a very low presence in the South. This has
restricted them from gaining market prominence. Slow growth: D Mart has established almost
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16 years ago much before the retail boom set a fire in India. However, it has not been able to
capture the market even as much as many of the later entrants primarily because of its long-
term focus. Sustainability of low pricing: The company has a zero credit policy and thus
vendors and suppliers give them a much better price which is how the company is able to afford
the low prices that the competitors cannot imagine. No frills: D Mart follows a no-frills
approach where the focus in to cut costs wherever possible. Their facilities are basic and lack
the frills of most upmarket retailers. The customers who come here essentially look at the low
prices of products on offer. So thus the sustainability of this differentiator is questionable.

Opportunity Analysis of D mart

Technology: Technology has a lot to offer to retailers in terms of in-store experiences and
retailer can use IoT(internet of things), artificial intelligence etc. to create value-adding services
to their customers for which a premium can be charged. Personalization of services: Customers
are looking for personalized services for which they are willing to pay extra. Retailers should
capitalize on this propensity to pay more and increase the quality of their services.

Threat Analysis of D mart

Online retailers: People in cities especially are highly lethargic about leaving their homes and
prefer to shop online today. Companies like Amazon and Flipkart thus become major threats
to most retailers. Online Start-ups: The hottest trend in India is online start-ups. Many of them
are aggregators who bring together the supplier and the customer cost-effectively. These
companies are the emerging threats more so because many new brands are cropping up in the
aggregation market primarily because of lower barriers to entry.

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 4.2 Primary Data Analysis

4.2.1 Gender profile

Table 1

Gender Profile

39%

61%

Male Female

Fig. 1
Interpretation – Out of the samples surveyed i.e. 80. 61% (41) of them are males and 39%
(31) of them are females.

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 4.2.2. Occupation
Table 2

Occupation

60
60
50

40

30

20 20
10

0
Student Service

Fig. 2

Inference – From the surveyed sample of 80. 60 of them were students and 20 of them were working
professionals.

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4.2.3. Monthly Income
Table 3

Monthly Income

Above Rs. 20,000 7

Rs. 15,000 - Rs. 20,000 14

Rs. 10,000 - Rs. 15,000 32

Below 10,000 27

0 5 10 15 20 25 30 35

Fig. 3

Inference – From the Total sample of 80. 7 of them have a monthly income of above Rs. 20,000, 14
of them have Rs. 15,000 – Rs. 20,000, 32 of them have Rs. 10,000 – Rs. 15,000 and 27 of them have
below Rs. 10,000.

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4.2.4. Shopping at D mart in a month
Table 4

No. of days shopping at D mart in a month

6%
24%
25%

45%

Once Twice Thrice More than thrice

Fig.4

Inference – Out of the surveyed sample of 80, 24% of the sample shop at D mart once a month, 45%
shop at D mart twice a month, 25% shop at D mart thrice a month and 6% shop at D mart more than
thrice a month.

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4.2.5. How often have you done impulsive buying at D mart
Table 5

Done impulsive buying at D mart

most of the time 8

sometimes 36

Rarely 36

0 5 10 15 20 25 30 35 40

Fig. 5

Inference – Out of the surveyed sample of 80, 36 rarely do impulse buying at D mart, 36 sometimes
do impulse buying at D mart and 8 of them do impulse buying at D mart most of the times.

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4.2.6. Influence of low price on impulse buying at D mart
Table 6

Influence of low price

45
41
40
34
35

30

25

20

15

10
4
5
1
0

Little moderately strongly very strongly

Fig. 6
Inference – Out of the surveyed sample 34 get very strongly influenced by low price, 41 gets
strongly influenced by it, 4 gets moderately influenced by it and 1 get little bit influenced by it.

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4.2.7. Influence of Promotional Schemes
Table 7

Influence of Sales Promotion

50

40 45
30
30
20
5
10

Moderately Strongly Very Strongly

Fig. 7
Inference – Out of the surveyed sample 30 gets very strongly influenced by sales promotion, 45 gets
strongly influenced by sales promotion and 5 gets moderately influenced by sales promotion.

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4.2.8. Influence of visual merchandising
Table 8

Influence of visual merchandising

4%

25% 30%

41%

Little moderately strongly very strongly

Fig. 8
Inference – Out of the surveyed sample 30% get a little bit influenced, 41% gets moderately
influenced 25% strongly influenced and 4% gets very strongly influenced by visual merchandising.

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4.2.9. Experience after doing impulse buying

Table 9

Experience after doing impulse buying

60

50

40

30 51

20
27
2
10

0
Poor moderate good

Fig. 9

Inference – Out of the surveyed sample 2 had poor experience, 51 had moderate experience and 27
had good experience after doing impulse buying at D mart.

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4.3 Hypothesis Testing

Hypothesis 1
H0 – There is an impact of attractive price on impulsive buying behaviour at D-mart
H1 – There is no impact of attractive price on impulsive buying behaviour in D-Mart
Table 10

Table 11.2

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Inference –

Decision rule for assessing if the test is significant (for α = .05)

Since p = .068 which is greater than .05 there is no significant relationship between impulsive
buying and attractive pricing. So we will not accept the Null Hypothesis.

There is no significant correlation between impulsive buying and attractive pricing, r(80) =
.20, p=.068

Hypothesis Testing 2

H0 – There is an impact of sales promotion on impulsive buying at D-Mart

H1 – There is no impact of sales promotion on impulsive buying at D-Mart

Table 11.1

Table 11.2

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Inference – There is a positive significant correlation between sales promotion and impulsive
buying at D-Mart

Since p = .048 which is less than .05 there is a positive significant correlation between impulsive
buying and sales promotion. So we will accept the null hypothesis

There is a positive significant correlation between impulsive buying and sales promotion, r (80) =
.22, p=.048

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 5.Findings (taking 80 as base)

1. Majority of the respondents (45%) visits D mart twice a month

2. Majority of those 45% respondents are students and have an income of Rs. 10,000 –
Rs. 15,000
3. 43.7% of the respondents visit D mart twice a month
4. 40% of the respondents who visit D mart twice a month falls under the income group
of Rs. 10,000 – Rs. 15,000
5. Out of all the respondents who shop at D mart 45% of them rarely do impulsive
buying their and 43.7% of them do impulsive buying frequently
6. 45% of the respondents said that they have done impulsive buying at DMart
7. Out of all the respondents who shop at D mart 41% gets strongly influenced by low
pricing to do impulsive buying
8. Out of all the respondents who shop at D mart 56.3% of the respondents strongly
influenced by promotional schemes like buy1 get 1 free to do impulsive buying
9. Only 20% of the respondents gets influenced by visual merchandising to do impulsive
buying at D mart
10. After analysis the primary data which was collected by circulating a questionnaire in
the form of Google Doc it was found that the respondents preferred low pricing and
promotional offers like buy 1 get 1 than visual merchandising
11. Promotional schemes like buy 1 get 1 free influenced the respondents the most for
doing impulsive buying at D mart
12. Majority of the revenue of D mart is being contributed by Maharashtra

7.Recommendation/Suggestions

On the basis of this study my recommendation would be as follows

1. Since most of the respondents visiting D mart have an income between Rs. 10,000 –
Rs. 15,000 they should keep more products that is affordable for the customers falling
under this income bracket
2. As majority of the respondents get influenced by promotional schemes like buy 1 get
1 free D mart should keep more offers like this

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 3. Since only 20% of the respondents gets influenced by visual merchandising D mart
should come up with some unique visual merchandising ideas to induce impulsive
buying behaviour of the customer
4. Since majority of the customers rarely do impulsive buying D mart should come up
with some innovative ideas to induce impulsive buying behaviour of the customers
5. Majority of the customers doing impulsive buying at D mart are students so D mart
should have more attractive prices since students don’t have much disposable income
6. Since majority of the Revenue of D mart is coming from Maharashtra, D mart should
Diversify their revenue more proportionally

8.Conclusion

Dmart is one of the fastest growing retail chain in India it expanded from 1 retail store in
2002 to more than 130 stores in 2019 all over India, Customers who shop at D mart usually
go there because of its 365 days offer on all products because of which the customer tends to
purchase even those products which were unplanned for. The most they get influenced by for
purchasing something impulsively are Offers like buy 1 get 1 free, even though they have
purchased something which was not planned customers are still satisfied even after doing

impulsive buying at D mart. Since Visual merchandising is not something D mart puts a lot
of efforts in, they should concentrate more on visual merchandising since the least no. of
customers are getting influenced by it for impulsive buying. Most of the customers doing
impulse buying at D mart are students and have limited disposable income, they come in the
income bracket of Rs. 10,000 – Rs. 15,000. Majority of the customers shopping at D mart
rarely do impulsive buying and do not do impulsive buying as frequently.

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 9. Bibliography
1) Abratt R (2011) Unplanned buying and in store stimuli
2) Gutirez B.P (2012) Determinants of planned and impulse shopping. The case of Asia
Pacific management review
3) Journals J, (2012) Comparitive Study Between impulsive buying at D mart and Apna Store
4) Kanna P. & Vinayagamoorthy A, (2014) A study of Inluencing impulse buying behaviour
5) Mohd. Rumzi Taushif & Gupta M (2013) A study of Factors affecting Impulse Buying
Behaviour of Cosumers at mall, Delhi
6) Muruganatham G & Bhakat R S, (2013) A Review of Impulse Buying Behaviour
7) Sharad Kumar D P (2016). A study on consumers “Impulse Buying Behavior in Organised
Retail”
8) Singh G (2014) Impulse Purchasing Behavior
9) Tirmizi A, Rehman K & Saif I (2010) An Imperical study on consumer impulse buying
behavior in local market
10) Abid Zain Alam (2017) Study on Impulse buying Behavior im Departmental stores

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