CONTENT


Abstract

Introduction

Literature Review

Methodology

Results

Conclusion and Recommendations

Bibliography

Appendix



ABSTRACT


This report will illustrates the reader with analysis and research done emphasized on the question of why Uzbek people like shopping for foods-products in supermarkets whereas Europeans prefer to shop in bazaars. In this report, the research group identifies the objectives and then research instrument is chosen in order to obtain the reliable data and clearly answer for the stated question.

There were chosen deductive approach in order to conduct the research, and survey strategy was chosen to obtain the necessary data. Also, convenience sampling method for questionnaires is used and the sample size was decided to be 50 respondents.

The result of the research illustrates that people in Uzbekistan purchase food in supermarkets, because it is considered that supermarkets offers high quality products and additionally other factors like the quality of variety of services offered by them impacts on their choice. While in Europe, according to secondary research, the reason of popularity of bazaars is affected by factors such as freshness of the food, cheaper prices compared to supermarkets and peoples perception to bazaars as exotic place to shop.

It is very important to determine the changes of people’s behavior to shop in different countries for people who is willing to find the proper channel of distribution for their products in different regions.



INTRODUCTION


Research Question

The research conducted by various researchers demonstrated the tendency towards high popularity of bazaars in European countries and developing industry of supermarkets in Asian, and Uzbek region in particular regarding food markets. However, it did not clarify the reason why people in Uzbekistan are making a habit of buying imported fruits and vegetables in closed areas with special safety conditions while Europeans do opposite. Goal of this project is to investigate whether Uzbek consumers are consistent to their traditional way of shopping in bazaars or willing to explore the “new ways” of shopping in supermarkets. Moreover, it is essential to identify the factors influencing consumers’ choice between supermarkets and bazaars as well as to find out the significance of both in the consumers’ lives.

So, the research question of this project is why Uzbek people like shopping for foods-products in supermarkets whereas Europeans prefer to shop in bazaars.

Research Objectives

In order to answer the questions above, the following research objectives were set:

  • To identify demographic characteristics of consumers shopping in supermarkets

  • To determine the factors influencing consumer’s way of shopping and the level of their satisfaction (prices, quality, services offered, etc in supermarkets and bazaars)

  • To analyze the frequency of shopping in supermarkets and try to explore the seasonal effect on it

  • To identify the factors providing high popularity of bazaars in European countries.


LITERATURE REVIEW


One of the most used retail outlets, nowadays known as supermarkets, was firstly originated in US with the main aim to provide high quality products in large assortment (Vasilyeva, 2003). In recent years supermarkets are becoming fast growing in developing countries such as Turkey, China, Turkmenistan (Sirtioglu, 2004, Gale, 2005, Zharan, 2005). However, rapid development of supermarkets greatly affects the traditional retail concepts known as Bazaars (markets). They were emerged as a result of caravan trade of ancient times, particularly Great Silk Road (Vasilyeva, 2003). Traditionally the main items of commerce in both bazaars and supermarkets are consumer goods and foods in particular.

In recent years different types of bazaars were opened throughout the Europe, for example Italian bazaar recently started its operations (Atlantic, 2007). As Kummer (2007) reports, this bazaar can be named as “supermarket of the future”, because it offers organic and fresh foods comparing to other markets in the country. The owner of Eataly bazaar Farinetti (2007) developed plan which helped to resolve transport logistics issues and by this cut down distance from farm to customers market. Moreover, prices of the goods offered to customer are below the prices compared to “gourmet boutiques” or other shops (Atlantic, 2007).

According to the research done by Poulsen and Sonne (2004), bazaars in the European countries are considered to be “new phenomenon” and perceived as exotic places where people can find non-traditional and hand-made products. The research was conducted in three European cities – Paris, London, Aarhus – and was aimed to analyse the influence of bazaars on the economy and the society of these cities. So, in Bazaar Vest located in Aarhus (the second largest city in Denmark) the customers are mainly immigrants who can find non-standard product, and the local government saw this place as one of the ways of economic support of immigrants and refugees. When visiting there, Danish people have “the impression that they are entering a foreign, and maybe, a Middle Eastern country” (Poulsen and Sonne, 2004).

Another fact, it is considered that bazaars in France are popular among only rich people who can afford high quality food for high prices (Vasilyeva, 2003). Nevertheless, Poulsen and Sonne (2004) have characterized the French bazaars as the place where separation takes place according to differences in nationalities, religions and social classes. Comparing bazaars and supermarkets, the researchers claim that “the variety and the freshness of the products, their high quality and the cheap prices combined with the availability of special products are important reasons for visiting and using the market” (Poulsen and Sonne, 2004).

Graham (cited in Poulsen and Sonne, 2004) explains the growing popularity of bazaars in London by changing in the wishes and desires of people, creative environment and different backgrounds. The main customers – students, families, and elderly people – are attracted by diversity of organic food that bazaars offer, history of the market, and by its function of place for meetings.

Considering eastern countries with developing economies, survey done by IFPRI (2003) illustrates, that nowadays they are experiencing rapid progress in supermarket development and also number of people who are willing to shop in them significantly rose. For instance, from 1999 and 2001, in China the percentage of sales in supermarkets increased to 2-3%. Moreover, Fritschel (2003) mentioned that by this day China has about 3000 supermarkets and it is predicted to increase this number by 5 to 10 times in next 5-7 years. Those newly opened supermarkets in east are mostly “chains from Europe and United States like well known Carrefour (France), Wal-Mart and others” (Fritschel, 2003). Gulati (cited in Fritschel, 2003) declared that the reason of opening branches of these well-known hypermarkets in developing countries is that the domestic market is already overfilled. Referring to Reardon (cited in Fritschel, 2003), the professor of international development and agribusiness/food industry at Michigan State University, “consumers are satisfied with the provided range of products, but this retail revolution poses serious risks for the developing-country farmers who have traditionally supplied the local street markets”. To these issue the general director of IFPRI, Joachin von Braun (2003) added:

We need to look more comprehensively at the whole picture, whether the poor benefit or lose from supermarket expansion depends on their net benefits as consumers through prices, time costs, and food safety, on their access to markets as farmers, and on employment, skills, and wage effects in the whole value-added food chain.”

In support to these facts, many studies were conducted to research the impact of westernization in retail business of developing countries (PriceWaterhouseCoopers, 2005-2006). In Turkey it is claimed that supermarket business is experiencing real boom due to rise in disposable incomes of population. However, numbers are much lower then average European standards. Research found that the possible reasons for millennial popularity of bazaars in Turkey might be their “convenient locations and lower prices for products such as fresh fruits and vegetables” (PriceWaterhouseCoopers, 2005-2006).

Moreover, Vasilyeva (2003) states that it’s become more difficult for bazaars and street markets to compete with supermarkets. The profit of supermarkets is generated not from the high prices set for their products but from the large volume of goods offered, their broad assortment, and high turnover. So, the share of supermarkets in Western Europe trade markets is approximately 80% and in Eastern Europe – 25-45% (Vasilyeva, 2003).

Considering Uzbekistan, Turdimov (2003) from the centre of economic investigation suggested that supermarkets are “western products on eastern ground”, where people get high quality service such as parking, place to eat, free bags for customers, and after-sales services. So, for the last 5 years popularity of supermarkets among consumers with mid- and high-income levels increased rapidly in Tashkent.

Despite, the popularity of supermarkets within Uzbek region, the major preferences are given to bazaars. Comparing these two types of markets, Turdimov (2003) says that supermarkets offer relatively high quality products but rather expensive than on bazaars. Moreover, according to Sairamtour (2006), eastern bazaars, like Uzbek ones, are considered to be the traditional pattern of eastern people.


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