Challenges associated with Traditional and Modern Retail Formats and their influence on Consumer Behaviour: A Study of Domestic and International Consumers.

Abstract

The retail industry has undergone significant changes over the past two decades due to digitalization, the emergence of new retail formats, and changing consumer expectations. Against this background, the present study examines the challenges associated with traditional and modern retail formats and their influence on consumer behaviour, with a focus on domestic and international consumers in Goa. It aims to identify the major issues that affect purchase decisions and the problems that influence consumer satisfaction across different retail formats. Primary data were collected from 200 respondents, including 120 domestic and 80 international consumers, using a structured questionnaire. The collected data were analysed using SPSS, with reliability testing, factor analysis, and regression analysis applied to examine the findings. The results identified six major critical issues: unfair trade practices, consumer exploitation, operational inefficiency, unfavourable retail practices, other unfair practices, and poor customer service. Four major problem dimensions were also identified: operational issues, customer trust issues, customer experience issues, and after-sales support. The regression analysis showed that operational inefficiency, unfavourable retail practices, customer trust issues, and after-sales support have a significant influence on consumer satisfaction. The study highlights the need for retailers to address these concerns to improve customer trust, enhance satisfaction, and encourage long-term customer loyalty.