Positioning of Vishal Mega Mart, a Hypermarket and Its Consumer Preferences Through the Implementation of Multi Dimensional Scaling, Factor and Conjoint Analysis w.r.t. Delhi Market

Abstract

This research study was done mainly aiming to evaluate the positioning of Vishal Mega Mart, one of the successful hypermarkets in India based on similarity and dissimilarity model of multi-dimensional scaling to plot a relevant perceptual map. It was inferred from the study that Vishal Mega Mart is perceived to be similar to Big Bazaar in terms of transparency and value for money. In terms of a shopping convenience, it is similar to Spencer’s. Two dimensions which were deduced were: Dimension 1: x represents high shopping convenience and x’ represents low shopping convenience and Dimension 2: y represents superior transparency and money value and y’ represents inferior transparency and value for money. After that exploratory factor analysis was implemented on certain chosen parameters, based on what Vishal do it’s positioning in the market, to extract the most important factors which influences the consumer preferences based on highest factor loading. After implementing factor analysis, from the total of 15 components/variables, 6 factors were extracted. The factors were churned to shopping convenience, Transparency and money value, customer centric, delivery and reliability, essentials and deals for fresh and trendy products. Three product attributes were selected on basis of factor loadings to create various combinations of product offerings. Conjoint analysis was executed to identify the combinations with highest utility value to the customers. From the simulation, it was found out in the study that the market offering with profile of high variety, low price and high quality was what customers of Vishal preferred most from the different combinations of variety, price and quality.

Keywords: Positioning, Hypermarket, Factor Analysis, Multi-Dimensional Scaling, Conjoint Analysis

View PDF