Consumer Preferences and Foreign Direct Investment in the Retail Sector: A Survey - Based Study

This paper explores the changing consumer preferences in the southern state of Karnataka following the entry of Foreign Direct Investment (FDI) into the retail sector. A model survey using the Consumer Price Inflation (CPI) basket was conducted to study consumer preferences in terms of their choice of retailers. The study revealed that notwithstanding the penetration of FDI in retail sector in Karnataka, consumers relied heavily on unorganised retailers except in the case of a few goods. There was, however, a stronger preference among consumers to shift to the online retailers over a one - year horizon. Furthermore, the choice of retailers was mainly influenced by their income and occupation.