Consumers’ Behavior toward Modern and Traditional Shops: A Study in Thane City

Yashoda Durge


The retail industry in India has been rapidly changing. Newer formats of retail shops have become available to consumers who now have a wide variety of choices from where they can shop. With the availability of modern retail shops, consumers’ spends are now fragmented and are spread over different types of retail shops. Where earlier consumers’ monthly grocery shopping would have been done at a local kirana/ semi-wholesaler, i.e., traditional retailers, now that spend is split over both modern and traditional retailers. Consumer spending on grocery does not increase exponentially with an increase in their incomes. In areas where modern retail formats are present, consumers are now purchasing from both types of formats. Thus, modern retailers are making inroads and grabbing the share of pie of traditional retailers in terms of consumers’ spends. This article attempts to study consumers’ behavior toward both modern and traditional shops in order to identify areas of consumers’ decision making in terms of expenditures on grocery, fruits and vegetables, the purchase of non-perishable grocery items, payment methods, and linking grocery with non-grocery purchases. With such an increase in competition and choices of retail formats available, retailers have to improve their offerings, services, and conveniences to consumers in order to win their continued patronage. Based on economic parameters of low, medium, and high-income groups, a sample of 559 respondents was drawn from Thane city; the unit of study was not individuals but the households. Survey research was chosen as the method for collection of data. Statistically, the extent of association and or variation between independent and dependent variables, of the data collected, was studied. 


Grocery retail, Consumer spending, Consumer preferences, Modern retail, Traditional retail.

Full Text:



Indian retail: The next growth story. KPMG. 2014. Available from: com/IN/en/IssuesAndInsights/ArticlesPublic ations/Documents/BBG-Retail.pdf.

Retail 2020: Retrospect, reinvent, rewrite. The Boston Consulting Group/Retailers Association of India. Feb 2015. Available from: /file181823.pdf.

Lindquist J, Sirgy M. Shopper, Buyer and Consumer Behaviour. USA: Atomic Dog Publishing 2003.

Durge Y. An analytical study of urban consumers’ expectations of retail store environment in Thane city, 2013.

Fotheringham AS. Consumer store choice and choice set definition. Marketing Science 1988; 7(3): 299-310.

Sinha P, Banerjee B. Store choice behaviour in an evolving market. International Journal of Retail & Distribution Management 2004; 32(10).

Bell DR, Ho T-H, Tang CS. Determining where to shop: Fixed and variable costs of shopping. Journal of Marketing Research 1998; XXXV: 352-69.

Banerjee A, Banerjee B. Effective retail promotion management: Use of point of sale information resources. Vikalpa 2000; 25(4): 51-59.

Banerjee A, Divakar S. Price threshold in a promotion intensive environment: How consumers optimally make decisions on how much to buy. Decision 2000; 27(1): 27-58.

Biyani K. Consumption & retailing in India in the years ahead. Available from: http://


  • There are currently no refbacks.