11_chapter 1_2.pdf - Chapter 1: Introduction: Concept of...

Chapter 1:
Introduction:
Concept of Retail, Organized and
Unorganized Retail Formats and Consumer Behavior in
Retail
1.1 Introduction to the Concept- Retail
1.2 Retail Conceptualization as an Industry-Phases of Evolution
1.3 Concept of Organized Retail and Unorganized Retail
1.4 Concept of Retail Consumer , Consumer Behavior in Retail and Consumer
preferences
1.5 Vital Role of Consumers in Retail Business
1.6 Linkage between Consumer Behavior and Indian Retail

Introduction
Chapter 1
CHAPTER ONE
INTRODUCTION
Retailing as an activity can be traced back to the times when human beings stopped
producing all their requirements by themselves and trading came into existence.
Origin of word Retail:
The word retail is derived from the French word “ Retaillier ” , which means to cut of a
piece or to break bulk. Therefore a retailer may be defined as a dealer or trader who sells
goods in small quantities. In simple terms this means a firsthand transaction with the
consumer.
Retailing thus might be understood as the final step in the distribution of merchandise
for consumption by the end consumers. It consists of all activities involved in the
marketing of goods and services directly to the consumers for their personal, family or
household use.
Retailing involves a direct interface with the consumer and the coordination of business
activities from end to end- right from the concept or design stage of a product or
offering, to its delivery and post-delivery service to the consumer. Retailing forms an
integral part of the Marketing Mix. In Retail Marketing Mix Place refers to the
distribution and availability of the products at the various locations. Consumers are first
introduced to the product through the retail stores. Organizations sell their products and
services through these stores and also simultaneously get a feedback on the performance
of the product and the consumer ’ s expectations from the product. Retail stores also serve
as the communication hub of the consumer.

Introduction
Chapter 1
Retail is the final stage of any economic activity. By virtue of this fact, retail has
occupied an important place in the world of economy. The retail transaction is at the end
of the supply chain. Manufacturers sell large quantities of products to retailers, and
retailers attempt to sell those same quantities of products to consumers. It is also known
as retailing, retail sale, retail transaction, retail business, retail trade, retail industry.
According to Philip kotler, “ Retailing includes all the activities involved in selling goods
or services to the final consumers for personal, non - business use. A retailer or retail
store is any business enterprise whose sale volume comes primarily from retailing.
According to North American Industry Classification System (NAICS) , the retail trade
sector comprises establishments primarily engaged in retailing merchandise and
rendering services incidental to the sale of merchandise.