FDI in Multi-Brand Retailing – A Survey of Indian Consumers
Madras University Journal of Business and Finnace, Vol. 01 No. 02, July 2013, pp. 34-45
25 Pages Posted: 10 Feb 2013 Last revised: 2 May 2015
Date Written: November 4, 2012
Retailing is the interface between the producer and the individual consumer buying for personal consumption. As such, retailing is the last link that connects the individual consumer with the manufacturing and distribution chain. This paper examines consumers’ attitudes and perceptions towards FDI in multi-brand retailing in India. For measuring the response of consumers’ towards FDI in multi-brand retailing in India, we have prepared a structured questionnaire based on 32 statements on a one to five scale basis. We have conducted a survey of 160 respondents across a variety of consumers and recorded their response towards the incoming of FDI in Multi – brand retail. A number of statistical techniques namely, Factor analysis, Likert scale, Cross tab analysis, Chi square test and SEM has been used to analyze the responses obtained and to arrive at meaningful conclusions. We find that our data is reliable with a Cronbach’s Alpha of 0.865. The overall results signifies that a majority of the population believes that FDI in multi-brand retailing in India will bring numerous benefits for consumers, farmers and help in generating employment opportunities. At the same time consumers’ perceive several threats of multi brand retailing including loss of business of small vendors. Therefore, it has been found that people are apprehensive about whether the overall economy would be benefited after the coming of FDI in multi-brand retail in India.
Keywords: foreign direct investment (FDI), multi-brand retailing, factor analysis, foreign retail investors, reliability test, Likert scale, structural equation modeling
JEL Classification: F23, D10, F31
Suggested Citation: Suggested Citation