Comparision of Consumer Preferences in Regards to Food Retail Formats in Tirupati City, India

Abstract

This study conducted in the year 2023 aimed to compare consumer preferences for various food retail formats in Tirupati city, focusing on organized and unorganized sectors, and to identify factors influencing their choices. A representative sample of 120 consumers was selected using simple random sampling, and primary data was collected through personal interviews. The findings revealed that 73.33 percent of the consumers in showed a moderate perception of both organized (62.50%) and unorganized (73.33%) food retail formats. Kirana stores (unorganized) and supermarkets (organized) were the preferred choices for purchasing food and groceries. The reasons for preferring organized retail formats included a wide range of products and better product presentation, while unorganized retail formats were favoured for more bargaining opportunities and locally sourced products. Income levels were found to influence retail format choices, with lower-income groups more likely to shop at unorganized formats. The SWOT   analysis indicated that organized stores benefit from a wide range of products but face competition from unorganized formats and online platforms, while, unorganized stores build strong customer relationships but struggle with limited product variety and changing consumer preferences.