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India retail industry is expanding itself most aggressively; as a result a great demand for real
estate is being created. Indian retailers preferred means of expansion is to expand to other
regions and to increase the number of their outlets in a city. It is expected that by 2010, India
may have 600 new shopping centers.
1
The Indian retail market, which is the fifth largest retail destination globally, according to
industry estimates is estimated to grow from the US$ 330 billion in 2007 to US$ 427 billion by
2010 and US$ 637 billion by 2015. Simultaneously, modern retail is likely to increase its share in
the total retail market to 22 per cent by 2010.
Continuing the robust growth of the organized retail in India, according to the Credit Rating and
Information Services of India, the industry raked in US$ 25.44 billion turnover in 2007-08 as
against US$ 16.99 billion in 2006-07, a whopping growth rate of 49.73 per cent.
India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25%
yearly being driven by strong income growth, changing lifestyles, and favorable demographic
patterns.
The Indian retail industry is expected to grow to US$ 700 billion by 2010, US$ 833 billion by
2013 and US$ 1.3 trillion by the year 2018 at a CAGR (Compound Annual Growth Rate) of 10
percent event. At the same time the organized sector will be 20 percent of the total market share.
It can be mentioned here that, the share of organized sector in 2007 was 7.5 percent of the total
retail market. Pantaloon, Tata group, RPG group, Reliance, AV Birla Group are some of the
major retailers in India.
Over the last five years, a number of large business groups such as Tatas, RPG, Rahejas and
Piramals has set up stores/malls and built businesses within retail. Thesem include the Rs1.9bn
Food World - a leading supermarket chain set up by RPG; the Rahejas Rs1.8bn Shoppers Stop a multi-brand departmental outlet and the Crossroads Mall set up by the Piramals. While many
of these initiatives were initially driven by the need to use existing real estate, they are beginning
to assume the contours of a serious business today.
Interestingly, manufacturers are also looking for forward integration and are building chains
around brands. Brands in apparel, footwear and durables have driven the growth of specialty
chains and upgraded existing multi-brand outlet.
c. Theme for a mall
Although the retail sector in India highly fragmented and consists predominantly of small,
independent, owner-managed shops, it happens to be the country's second largest employer after
agriculture. The country is currently witnessing a boom in retailing, thanks mainly on account of
an increase in the disposable incomes of middle and upper-middle class households.
More and more corporate houses, including large real estate companies, are now entering the
retail business directly or indirectly. One sign of the modernization of Indian retailing is the rapid
growth in the number of speciality malls and theme malls. The Piramals, Tatas, Rahejas, ITC, S.
Kumar's, RPG Enterprises, Aerens, Omaxe and mega retailers like Crosswords, Shopper's Stop.
d. Organized Retailing
Organised retailing got a leg up during 2004 with the opening of new format stores, rapid growth
of existing players, start-up of new-generation shopping malls, the Government's intention of
allowing a certain level of foreign direct investment in retail and the formation of a retailers'
association. With consumer sentiment positive during most of 2004, it led to substantial spending
across a number of categories such as consumer durables, clothing and lifestyle, automobiles and
telecom products. At the beginning of this decade, organised retailing accounted for a mere $2.9
billion in India. This is only 1.25 per cent of the estimated total retail market. This share has
already grown to 2 per cent.Growth projections for retail business vary widely. Some studies
estimate that by 2007, the share of organised retail in the retail pie will jump three times to reach
5-6 per cent.
Retail in India largest industry accounting for over 10% of the country GDP and around 8% of
the employment. Retail industry in India is at the cross road. It has emerged as one of the most
dynamic and fast paced industries with several player entering the market. The future is
promising the market is growing government policies are becoming more favorable and
emerging technology and facilitating operations.
Some key facts retail in India largest industry accounting for over 10% of the country GDP and
around 8% of the employment.
The market size of Indian retail industry is about US $ 312 billion.
"The story is not about us, but this story is about the people who visit our stores. This is a proud
moment for India."
One of the biggest retail here in India we know is Kishore Biyanis big bazaar. The company
ended 2007-08 with Rs5048crore in revenue. Biyani's and Big Bazaar's, march comes at a time
4
when several new retailers are slowing expansion, reducing the number of outlets, effecting
layoffs, even exiting the business.
Thus here we will know about the company profile, operations and also about the consumer
behavior towards the schemes, discount, etc which are offered by the store to facilitate
customers.
e. The Various Retail Forms in India
i.
Mom and pop stores: Family owned business catering to small sections, which are
ii.
iii.
and services.
Convenience stores: These stores are located in residential areas with slightly higher-
iv.
v.
vi.
vii.
viii.
ix.
As per the statistics, India has experienced a high growth rate in the last four years, the
consumers spending has claimed upto 75 percent and as a result the Indian retail industry is
expected to grow further in the future days. By the year 2013, the organized sector is also
expected to grow a CAGR of 40 percent.
Since global competition had become acute, there was an entry of many multinational retail
giants and there was a favourable climate for allowing foreign direct investment in the retail
sector too. It had become a necessity on the part of the retailers of India to reconsider their retail
strategy whether they belong to the organized or the unorganized category. There were
arguments in favour of and against allowing the foreign direct investment. Though, the
government has taken no policy level decision to allow foreign direct investment, there is a
strong lobby more in favour of allowing foreign direct investment. Till now foreign direct
investment has been allowed indirectly through franchising arrangements. However a conducive
atmosphere exists in favour of foreign direct investment that can be allowed in a phased manner
like it happened in China.
1.2 Company Profile
Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in
both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai
(Bombay), the company operates over 10 million square feet of retail space, has over 1000 stores
across 61 cities in India and employs over 30,000 people.
The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar,
Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of
Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a
chain of seamless destination malls.
Big Bazaar is a chain of shopping malls in India, owned by the Pantaloon Group and which work
on Wal-Mart type economies of scale. They have had considerable success in many Indian cities
and small towns. Big Bazaar provides quality items but at an affordable price. It is a very
innovative idea and this hypermarket has almost anything under one roof Apparel, Footwear,
Toys, Household Appliances and more. The ambience and customer care adds on to the shopping
experience.
a. It is a chain of shopping malls in India owned by Kishore Biyanis Pantaloon Group.
b. Big bazaar is not just another hypermarket, but also provides the best products at the best
price.
c. It Reflect the look and feel of Indian bazaars at their modern outlets. All over India, Big
Bazaar attracts a few thousand customers on any regular day.
d. Big Bazaar is a chain of department stores in India. It is owned by the Pantaloon Retail India
Ltd, Future Group. It has considerable success in many Indian cities and small towns.
e. A department store is a retail establishment which specializes in selling a wide range of
products without a single predominant merchandise line.
products including apparel, furniture, appliances, electronics, and additionally select other lines
of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jewellery,
toys, and sporting goods.
The idea was pioneered by entrepreneur Kishore Biyani, the CEO of Future Group. Currently
Big Bazaar stores are located only in India. It is the biggest and the fastest growing chain of
department store and aims to have 150 outlets by June 2009 and 350 stores by the end of year
2010.
1.21 Vision and Mission of the Company
a. Vision
Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in
the most profitable manner.
b. Mission
Shares the vision and belief that customers and stakeholders shall be served only by creating and
executing future scenarios in the consumption space leading to economic development.
The trendsetters in evolving delivery formats, creating retail realty, making consumption
affordable for all customer segments for classes and for masses.
Infuse Indian brands with confidence and renewed ambition.
Efficient, cost- conscious and committed to quality in whatever company do.
Ensure positive attitude, sincerity, humility and united determination shall be the driving force
to be successful.
c. SWOT Analysis of the Company
A SWOT analysis is done to know the strengths, weaknesses, opportunities and threats of any
company. This analysis will explain about the strengths, weaknesses, opportunities and threats of
big bazaar.
i.
ii.
a)
b)
Cheap price
c)
d)
Volume sales
iii.
iv.
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group
Chief Executive Officer of Future Group.
Mr. Gopikishan Biyani, Wholetime Director
Gopikishan Biyani, is a commerce graduate and has more than twenty years of experience in the
textile business.
Mr. Rakesh Biyani, Wholetime Director Rakesh Biyani, is a commerce graduate and has been
actively involved in category management; retail stores operations, IT and exports. He has been
instrumental in the implementation of the various new retail formats.
Mr. Ved Prakash Arya, Director
Ved Prakash Arya, is an engineer by training and is a graduate of the Indian Institute of
Management, Ahmedabad. Prior to joining Pantaloon Retail, he was the CEO of Globus.
Mr. Shailesh Haribhakti, Independent Director
Shri Shailesh Haribhakti, is a Chartered Accountant, Cost Accountant, and a Certified Internal
Auditor. He is the Deputy Managing Partner of Haribhakti & Co., Chartered Accountants and
past president of Indian merchant Chambers. He is on the Board of several Public Limited
Companies, including Indian Petrochemicals Corporation Ltd., Ambuja Cement Eastern Ltd. etc.
He is on the Board of Company since June 1, 1999.
Mr. S Doreswamy, Independent Director
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S. Doreswamy, is a former Chairman and Managing Director of Central Bank of India and serves
on the board of DSP Merrill Lynch Trustee Co and Ceat Limited
Dr. D O Koshy, Independent Director
D. O. Koshy, holds a doctorate from IIT, Delhi and is the Director of National Institute of Design
(NID), Ahmedabad. He has over 24 years of rich experience in the textiles and garment industry
and was instrumental in the setting up of NIFT centres in Delhi, Chennai and Bangalore. He is a
renowned consultant specializing in international marketing and apparel retail management.
Ms. Anju Poddar, Independent Director
Anju Poddar, holds a Bachelor of Engineering from University of Oklahoma and is a Director,
NIFT, Hyderabad chapter. She also serves on the board of Maharishi Commerce Ltd and Samay
Books Ltd,
Ms. Bala Deshpande, Independent Director
Bala Deshpande, is Independent Director, Pantaloon Retail (India) Ltd. and also serves on the
boards of Deccan Aviation, Nagarjuna Construction, Welspun India and Indus League Clothing
Ltd,
Mr. Anil Harish, Independent Director
Anil Harish, is the partner of DM Harish & Co. Associates & Solicitors and an LLM from
University of Miami. He also serves on the board of Mahindra Gesco, Unitech, IndusInd Bank
and Hinduja TMT,
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e. Major Milestones
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
launched.
2002 Food Bazaar, the supermarket chain is launched.
2004 Central Shop, Eat, Celebrate in the Heart of Our City - Indias first seamless
x.
xi.
xii.
xiii.
enters into joint venture agreements with ETAM Group and Generali.
2007- future group cross $1 billion mark.
2008- future group holding becomes the second group company to make a successful
xiv.
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under one roof Apparel, Footwear, Toys, Household Appliances and more. The ambience
xv.
f. Organizational Chart
13
Objectives
The objectives of the study are as follows:
i To study the impact of service quality on customer satisfaction.
ii To identify the most significant dimension of service quality that contribute to customer
satisfaction.
Scope
The scope of this research is to study customer satisfaction of service quality offered at Big
Bazaar.
ii
iii
It provides help to further the research for organized retail sector in NCR area. It aims to
understand the service quality factors
1.5 Methodology
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The data will be collected from both Primary and Secondary sources. For valid and reliable
results, a random selection method will be undertaken including customers of various segments
in a sample size of 100-150.
A self designed questionnaire will be used as the major tool for collecting Primary data while
Journals, Magazines. Internet and other relevant manuals/publications will be used as secondary
sources of data collection. Bar graphs and Pie charts will be used for data representation for
demographic features of the respondents. Data collected will be analyzed using descriptive
statistics, correlation and Regression analysis.
1.6 TOOLS
SPSS and MS Excel will be used to analyze and present the data collected from the respondents.
1.7 Hypothesis Testing
H01There is no significant relationship between dimensions of service quality and Customer
Satisfaction.
Ha1There is a significant relationship between dimensions of service quality and Customer
Satisfaction.
1.8 Reliability Testing
Since the researcher has adopted a self-designed questionnaire therefore reliability testing has
been conducted on the basis of 30 respondents to calculate the value of cronbach alpha and
confirm the reliability of the questionnaire used. The output of the same is as follows:
Cronbach Alpha No of questions
0.911
26
Table no. 1.1 : Reliability Testing
15
Since the value of cronbach alpha is greater than 0.7 therefore the responses are reliable for
further course of study.
Chapter 2
LITERATURE REVIEW
Chapter Overview
Review of literature provides information to the researchers regarding the previous work done in
their area of research and thereby helps them in identifying the theoretical framework and
methodological issues relevant to the study. It provides the researchers a proper direction to
carryout their research work and enables them to arrive at meaningful results.
Shukla Pratima, Barad Kishore (2013) in his study titled A Study of Customer Loyalty and
Satisfaction towards Sales India in Ahmedabad City investigated customer loyalty and
satisfaction among consumers.
The Objective of the study was to understand
To identify the gap between expectation and perception.
i.
ii.
iii.
To find out if significant difference exists between perception and expectation or not.
Descriptive research was used and a structured questionnaire was developed with closed ended
questions. Data and information gathered through questionnaire were analyzed using SPSS
16
Software and t-test was used to find the significant difference between perception and
expectation of the customers towards Sales India.
The findings of that research were that there was no significant difference between the mean
scores of perception and expectation of the customers towards Sales India. As a result, the store
fulfils the demand of the customers as per their expectation.
Kumar Dilip C., Yamuna S.M. (2013) in his study titled A Study on Consumer Attitude
Towards at Big Bazaar investigated attitude of consumers.
The main objective of the study was
i.
ii.
iii.
iv.
The study has used primary data only. Primary data were collected using interview schedule
method. 100 customers were selected using convenient random sampling technique. For purpose
of detailed analysis of the study, the following statistical tools have been used in the study.
Chi square analysis
Weighted average method
Findings of the paper was that Customers feel it to be an ease to purchase all their requirements
under one roof from provisional items to customer durables.
Beneke J., Hayworth C., Hobson R., Mia Z. (2012), conducted a research titled Examining
the effect of retail service quality dimensions on customer satisfaction and loyalty The case
of the supermarket shopper. The main Objective is to study the effect of retail service quality
dimensions on customer satisfaction and loyalty. It was found that Physical Aspects was the most
17
important predictor of Customer Satisfaction. This reinforces the notion that the physical
environment needs to be clean, well-structured and adequately maintained. Furthermore, the
design needs to be optimized so as to maximize convenience. Personal Interaction was also
found to be significant. Reliability was found to be very weakly connected to customer
satisfaction, no evidence was found to support the notion that Problem Solving and Policy was
significant influencers of customer satisfaction. The study concluded that It appears that
supermarkets in South Africa should therefore place a premium on their premises, as well as the
reception and treatment of their customers. The aesthetic appeal of the supermarket needs to be
favourable, the layout of merchandise should be logical and orderly, and a high degree of
cleanliness ought to be maintained at all times. It may well be worth investing in marketing
research in order to ensure that expectations are met, and exceeded, in this regard. Furthermore,
staff should adopt a friendly disposition, and possess the required store knowledge through
internal training programmes.
Patel Deval B. (2012) in his study titled A case study on Customer Relationship
Management at Big Bazaar in Surat city investigated CRM practices at Big Bazaar in surat.
The main objective of the study was To study customer relationship Management at Big Bazaar
in Surat city. In this paper Researcher used case study. For data collection Researcher chose in
depth interview and participant observation. The goal of the interview is to deeply explore the
respondents point of view, feelings and perspectives. In this sense, in-depth interviews yield
information. Researcher studied about the customer relationship in Big Bazaar, wherein
Researcher gathered information about their services they offer , in every season they give
advantage to their customers by giving different and attractive schemes like Wednesday bazaar ,
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monthly bachat , sab se sasta din like 26th Jan and 15th Aug, provide exchange offer for old
goods etc,. For that researcher took in depth interview of HR Mr. Sanket Upadhyay of Big
Bazaar at Surat, come to know about their complaint handling facilities and how they take
suggestion of their customers. It was also found that Big Bazaar takes good care of their
customers and frequently offers different and attractive schemes and Big Bazaar giving value for
money to its customers.
Arockia R.(2012) in his study Customer Satisfaction with regard to the Service Quality of
Departmental Stores in Tiruchirappalli city took an attempt to understand the various factors
influencing the satisfaction level of the customers with regard to the various dimensions of
service quality such as tangibles, reliability, responsiveness, assurance and empathy.
The main objective was to examine the expectations of the customers from the departmental
stores and find out how far they are satisfied. To enquire into the various dimensions of service
quality rendered by these departmental stores.
The present study was empirical in nature, based on the primary data collected from the study
area. Known theories and models were applied in drafting and formulating the questionnaire.
Mathur Meera, Samma Sumbul (2011)in his study titled A Study on Customer Relationship
Management Practices in Selected Organised Retail Stores in Udaipur City investigated
CRM influencing factors.
The main objective of the study was to understand and identify the Customer, Relationship
Management Practices followed by the retail stores.
To study the benefits of CRM to the retailers and customers. To provide the effectiveness of
loyalty program adopted by retail stores.
19
The research methodology adopted in CRM in retail is a descriptive research technique taking 30
organized retail stores as the sample population and sample size. The sampling technique used in
the survey is non - probabilistic judgmental sampling using a structured questionnaire, interviews
and observation methods to collect data from the customers.
It was found that in retail the management of the retail store should give a personal touch to the
customers. The management of the retail store should provide special training to the sales staff of
the organization to keep a healthy and friendly relationship with the customers. The customers
don't take a single second when it comes to change the preference and break the loyalty for an
organization, in such a situation it the customer relationship management of the organization
which will compel the customers to visit the retail outlet again and again.
Manju Malik (2011) conducted a research titled A study on customer satisfaction towards
service quality of organised retail stores in Haryana. The objective of the study is to study
the relationship of dimensions of service quality and customer satisfaction and to study the
difference in demographic groups towards dimensions of service quality. In this study it was
found that majority of the respondents visiting the organised retail store were male, and most of
them were from younger age group and from the middle class income group. Dimensions of
service quality were positively related with the customer satisfaction, but differ in importance,
Product quality, physical aspect, and promotional schemes were the most significant determinant
of customer satisfaction. The study concluded that Indian consumers are more concerned about
the service quality, store convenience, product quality, and availability of new products. Thus,
the study provides some insights on factors that could be important in managing customer
satisfaction. First, the organised retail managers need to enhance the product quality and store
20
convenience, and after sale customer service to improve customer satisfaction. Second, the
organised retail managers must assures quality and availability of new products and attractive
promotional schemes to enhance customer satisfaction.
Naik Krishna C.N., Gantasala Swapna Bhargavi, Prabhakar V. (2010), conducted a research
titled Service Quality (Servqual) and its Effect on Customer Satisfaction in Retailing. The
objective of this study is to assess the influence of service quality on customer satisfaction. It
was found that study concentrates on Customer perceptions of the following SERVQUAL
dimensions, price and product quality. The dimensions are Tangibles, Reliability,
Responsiveness, Assurance, and Empathy. The study concluded that customers have highest
expectations on the promptness of service, accuracy of transactions, security issues and concerns;
the customers lowest expectations are cleanliness, ambience, etc. It must however be noted here
that this rating is a comparative assessment and therefore this dimension of service quality scores
lower in comparison to promptness, security and other security related issues. The dimension
Staff performance in our informal interviews was reported to be satisfactory by the respondents
and therefore did not expect substantial improvements in their performance.
Lakshmi Narayana K1, Ajata S. Samal and P Nagaraja Rao (2010) conducted a research
titledA study on consumer buying behavior towards organized and unorganized retail
store in Bangalore city. The Objective of the study to find out the consumer behavior towards
organized (supermarkets/malls, hyper markets, departmental stores, etc.) and unorganized (local
Grocery stores, weekly bazaars etc.) retail stores in Bangalore city. In this study it was found that
the unorganized retailing in the vicinity of organized retailers has been adversely affected in
terms of their volume of business and profit. Unorganized retail has maintained employment
levels perhaps as a result of competitive response. The adverse unorganized retailer tapers off
21
over time. The major factors that attract unorganized retailers to consumers are proximity,
goodwill, credit sales, bargaining, loose items, convenient timings, and home delivery. The study
concluded that the concept of retail is primitive in Indian context. Customers have miserably
failed in building base with loyal customer. No matter how much the companies talk about
Customer Relationship Management (CRM), when it comes to the implementation they endeavor
it only through the discount sales driven by their profit motive.
Devi Prabha and Sellappan R. (2009), conducted a research titled Service Quality at
Retail Stores - Customers Perception to study relation between customer perception and
services. The main Objective of the Study to identify the customers service quality perception
factors at the retail stores. It was found that 20 service Quality variables were identified across
the various dimensions of service quality namely tangibility, responsiveness, reliability,
assurance and empathy. The Eigen values, reliability statistical and percentage of variance of the
service quality variables. The most important factor identified is reliability consisting of 4
variables. It was concluded that the retailing sector growing to meet the global standards will
have to evaluate on the lines of how customers perceive service quality and how they evaluate it.
With the growing organized retail market and the increasing number of the competitors the
customers perception on a particular retailer is critical in determining the satisfaction and the
loyalty of the customer.
U. Dinesh Kumar, P. Vikkraman (2009)
Satisfaction towards Organized Retail Outlets in Erode City. The objective of the study is to
identify the determinants of customer satisfaction in the organized retail outlets in the city. In this
study it was found that organized retail outlets provide better quality of service, product range as
compared to the unorganized retail outlets. They are satisfied with self-service, product price,
22
visual merchandising, home delivery and fast check out. The study concluded that most of the
customers prefer purchasing from organized retail outlets than unorganized outlets. Also, most of
them are satisfied with the quality of service, price and product range of the goods provided by
organized retail outlets. Satisfaction of consumers in retail service is an important criterion for a
marketer to understand for further strategic decision.
Arun Kumar, G, Dr.S.J.Manjunath3Anitha Thimmaiah (2007) conducted a research titled
Service Quality in departmental stores: A Study of Consumers Satisfaction in Apparel
Retailing. The Objective of the study is to determine whether the dimensions of service quality
significantly affect customer satisfaction in apparel retailing. In this study, it was found that the
management needs to improve service quality in areas of responsiveness. The study concluded
that the measurement of service quality has become a significant marketing tool for retail stores
that wish to develop a competitive advantage by learning about their customers consumption
experiences validating the implementation of the retail service quality and by providing
empirical evidence of how retail service quality dimensions leads to customer satisfaction in this
setting.
Satendra Bhardwaj, Rajeev Sharma and Jyoti Agarwal,conducted a research titled To
Study the Perception of Consumers towards shopping Mall.The Objective of the study is to
study the Perception of Consumers towards Shopping Mall. In this study it was found that
Apparel stores have maximum females customers. Brands and trends attract people toward
malls .Parking is the major problem on weekends. Most of the Customers are targeted by almost
all the segments of the society with their USP being Price benefit customer require all the
stores in Prime Location. Consumers are interested to purchase those products which has
discount price. The study concluded that Customer Service is a critical factor for keeping clients
23
coming back and ensuring theyll refer to others. Customer service is all about the customers
perception. Consider opportunities for improvement in the following areas such as
Setting/Reviewing Expectations, improving communication skills of sales personnels,
commitment with the customers.
Prof. Rajesh Faldu conducted a research titled Comparative study of the select apparel
store in the organized sector. The Objective of the study is to understand the customers level
of satisfaction in the selected retail outlets and to have a comparison of the selected Apparel
retail stores in organized sector in Ahmedabad. In this study it was found that Majority of
shoppers were in the age-group of 21-30 in Lifestyle and Pantaloons whereas in Westside Store,
they were in the age group of 31-40. Most of the people shopping in Lifestyle, the average
income was 20,000 to 30,000 and they are single but in case of Westside and Pantaloons, they
were married. As most of the people were salaried classes, single and shopping in the evenings.
From this study, it was concluded that Visiting retail outlets have become a group activity. No
matter whatever the income level is, people do visit mall at least once. People who are Single
come for spending time with friends in the evening during weekends rather than shopping.
Whereas Married people come in the evenings with family for shopping and getting refreshed
during weekends. Mostly, Advertisements, friends and Colleagues influence shoppers.
G. S. David Sam Jaya kumar and K. Abdus Samad, conducted a research titled
Identifying important service quality parameters for major Indian retailers- A case
study. The main Objective of the Study is to identify the important service quality dimensions
for major Indian food retailers. It was found that the Services Quality dimensions give a positive
impact on the overall Services Quality of major food retailers. The first dimension is the physical
aspect, second dimension is the reliability of retail store. Reliability refers to the services which
24
have to be done at the right moment based on the retail shoppers expectations, third parameter is
the personal interaction which refers to the knowledge of the employees in a particular store,
their behavior and services performed by them in a perfect, prompt and exact manner to their
customers, fourth parameter is problem solving. This element is the core for the services criteria,
because, the customers problems and issues have to deal with due care. Possible solution must be
given to customers grievance. Finally the last parameter is policy, Finally, the retail services
quality is also determined by the facet policy. Here, policy means the retailers have to offer
quality food and grocery brands to its buyers. The study concluded that the measurement of
service quality has become a significant marketing tool for retail stores that wish to develop a
competitive advantage by learning about their customers consumption experiences validating the
implementation of the retail service quality and by providing empirical evidence of how retail
service quality dimensions leads to customer satisfaction in this setting.
Kaul Subhasini (2005) in her study titled Measuring Retail Service Quality: Examining
Applicability of International Research Perspectives in India investigated service quality.
The objective of the study was to assess the applicability of the RSQS for measuring service
quality in India. This was achieved by examining the reliability, validity and component
structures of the RSQS.
A quota sampling procedure was used with a sample size of 180 respondents. The quota were
fixed based on income, gender and age since these are known to impact perceptions of service
quality.
The RSQS validity and reliability in the Indian retail setting indicate that the RSQS can be used
to assess the overall service levels provided by the store and for tracking changes in overall
service levels over a period of time.
25
received as expected then the service quality is good or satisfactory, but if the services received
exceed the expectations will be very satisfied customer and perceived service quality is very
good or ideal. Conversely, if the service received is lower than expected then the perceived poor
quality of services. Quality of service will depend on how much the service provider's ability to
consistently meet the needs and desires of consumers.
Olson & Dover (Parasuraman, et al., 1995), customer expectation is the customer's confidence
before buying a service which is used as a standard in assessing the performance of services.
Customer expectations are formed by past experiences, talk through word of mouth and
corporate promotions. After receiving a service, customer service experience to compare with the
expected. If the service suffered under the expected, then the customer will not be interested
again, otherwise if the service experience meets or exceeds customer expectations the customer
will look to use these providers.
Parasuraman et al (Sultan & Simpson, 2000: 193) developed a measurement scheme of service
quality dimensions of tangibles, reliability, assurance, responsiveness, and Empathy.
Measurements they have developed a term known as Service Quality (SERVQUAL), including
in his description suggests the difference between expectation and performance (performance)
from a number of criteria that currently services are widely used to measure the quality of
service. This tool is intended to measure customer expectations and perceptions, and the gap
(gap) is in service quality model (Fandy Tjiptono, 1996: 99). Measurement of service quality in
this study is based on service performance scores are perceived by customers (Cronin & Taylor,
1992).
27
Quality of services will create customer loyalty. Customers must be satisfied, because if they
were not satisfied to leave the company and will become customers of competitors, this will
decrease sales and in turn will lower corporate profits (Cronin & Taylor, 1992; Rust, et al., 1995).
The results of research conducted by Cronin & Taylor (1992) and Taylor & Baker (1994) showed
that the regression coefficient of interaction with the service quality to customer satisfaction park
services, retail and distance telecommunications services, significant buying interest returned.
Some researchers did test the influence of service quality, customer satisfaction and repurchase
interest. Woodside, et al., (1989) proposed an assessment model that specializes relationship
between perceptions of service quality, customer satisfaction and interest to buy. Result directing
that customer satisfaction is an intervening variable between service quality and interest back.
Affect service quality satisfaction, and satisfaction affect the interest purchased.
28
Chapter 3
DATA PRESENTATION & ANALYSIS
Chapter Overview
This chapter is divided into two parts, the first part is data presentation and the second part is
data analysis. First part of the chapter covers the statistical analysis on data collected using the
research instrument. Analysis of the data was carried out using both MS Excel and SPSS
(Statistical Package for Social Sciences) to understand the link between the Customer
Satisfaction and Service Quality exhibited by the customers of Big Bazaar.
The second part of the chapter deals with the hypothesis testing which is done by using
regression as a tool for hypothesis and also mean and standard deviation as a means of analysis
along with respective inferences.
3.1 Data Presentation
3.11 Gender of respondents
Gender
In Tables
Male
59
In Percentage
(%)
48
Female
65
52
29
Gender
Male
Female
48%
52%
30
In Tables
Percentage (%)
20 to 35 years
46
37
36 to 45 years
43
35
35
28
Age
20 to 35 years
36 to 45 years
28%
37%
35%
Inferences: Out of 123 respondents the no of respondent aged 20 to 35 years are 46, age group
between 36 to 45 years is 43 respondents, above 46 years is 35 customer, therefore the major
respondent lies between the age group 20-35 years .
31
32
Marital Status
In Tables
Percentage (%)
Single
26
21
Married
98
79
Marital Status
Single
Married
21%
79%
Inferences: Out of 124 respondents 26 is single and 98 are married respondents, therefore
majority of the responses have been taken from the respondents who are married.
33
Income Group
In Tables
21
Percentage
(%)
17
Rs. 300001-600000
74
60
Above 600000
29
23
Income Group
Below Rs. 300000
Rs. 300001-600000
Above 600000
17%
23%
60%
Inferences: Out of 124 respondent of Income group, Below 3 lacs earners are 21, respondent of
income level between 3 to 6 lacs is 74. Income level 6 lacs is 29 According to the income level
majority of the respondents lie between 3-6 lacs.
34
35
Educational Level
In Tables
Percentage
(%)
Primary
Secondary
19
15
Graduate
54
44
Post Graduate
45
36
Education
Primary
Secondary
Graduate
5%
36%
Postgraduate
15%
44%
36
In Tables
Percentage
(%)
Employed
51
Self Employed
39
15
Housewife
32
44
Unemployed
01
36
Occupation
Employed
Self Employed
Housewife
Unemployed
1%
26%
41%
32%
Since the researcher has adopted a self-designed questionnaire therefore reliability testing has
been conducted on the basis of 1230 respondents to calculate the value of cronbach alpha and
confirm the reliability of the questionnaire used. The output of the same is as follows:
Cronbach Alpha No of questions
0.811
26
Since the value of cronbach alpha is greater than 0.7 therefore the responses are reliable for
further course of study.
38
Descriptive Statistics
The sample mean is the average and is computed as the sum of all the observed outcomes from
the sample divided by the total number of events. The Standard Deviation is a measure of how
spread out the data is from the mean value.
The descriptive statistics is used to find the most significant factor of service quality with respect
to retail industry.
Descriptive Statistics
Mean
Std. Deviation
VAR00001
26.6048
3.78877
124
VAR00002
57.5968
7.02599
124
Correlations
VAR00001
Pearson Correlation
VAR00002
VAR00001
1.000
.699
VAR00002
.699
1.000
39
Sig. (1-tailed)
VAR00001
.000
VAR00002
.000
VAR00001
124
124
VAR00002
124
124
Table 3.8 correlation between dimensions of service quality and customer satisfaction
Variables Entered/Removeda
Model
1
Variables
Entered
Variables
Removed
VAR00002b
Method
. Enter
Model Summary
Change Statistics
40
Mod
el
Adjusted R
Std. Error
R Square
df1
Square
Square
of the
Change
Change
df2
Sig. F
Change
Estimate
.699a
.489
.485
2.71876
.489 116.870
122
.000
Sum of Squares
df
Mean Square
Regression
863.858
863.858
Residual
901.779
122
7.392
1765.637
123
Total
Sig.
116.870
.000b
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Sig.
Coefficients
B
1
Std. Error
(Constant)
4.880
2.024
VAR00002
.377
.035
Beta
Analysis:
R value is .699
41
.699
2.411
.017
10.811
.000
Interpretation:
It is found from the analysis that there is significant impact of services offered on customer
satisfaction. The R value (.699) showed that there was very less consistency showed which lied
in the moderate range of .3 to .5 in predicted values and observed values. R-Square value (.489)
shows that unitary change in the value of services offered will change the Customer satisfaction
by .489 only. Since the p value (sig.2 -sided) is 0.000 which is less than 0.05 so the null
hypothesis is rejected and the alternate hypothesis is accepted . It shows that the services offered
has only 48.9% significant impact on satisfaction of it and other factors affecting may vary.
Hence there is a significant impact of quality of services offered on customer satisfaction.
Chapter-4
SUMMARY AND CONCLUSIONS
42
Chapter Overview
The present chapter aims to recollect the various phases of the study. A summary of the research
with the main findings has also been presented. Revisiting of objectives is essential to understand
whether the purpose and aim of research has been achieved. Limitations of the study have been
pointed out. Recommendations based on the study have also been presented. Finally, the chapter
throws light on directions for future research.
4.1 Findings / Results of the Study
To make the theoretical contribution of this research easier to follow, the findings will be
presented according to the research objectives outlined in the introduction.
4.11 Major Findings
1. There is a significant relationship between dimensions of service quality and customer
satisfaction. Researcher found that service quality dimensions i.e. Physical aspects, Reliability,
Personal Interaction, Policy of the Store are positively related with customer satisfaction.
Customers are satisfied when the departmental store provides excellent service quality to the
customers who visit there store frequently.
2. There is no significant difference among consumers of different age groups towards
satisfaction by service quality as the researcher found that all the age group i.e. from youth, adult
or senior adult visit Big Bazaar for shopping as it provides better quality, convenience and more
variety of products to the customers.
3. The positive overall mean score of reliability shows that the store performs as per the
expectation of the customers and they are satisfied.
43
4. The store performs as per the expectation of the customers and they are satisfied with
personal interaction dimension of the store.
5. The positive overall mean score shows that the store performs as per the expectation of the
customers and they are satisfied with problem solving dimension of the store.
4.12 Additional Findings
The review of previous research work on the subject helped to determine the dimensions of
service quality with customer satisfaction offered at Big Bazaar. The questionnaires were filled
by 124 respondents who are customers of Big Bazaar.
1. The survey shows that majority of the respondents of the store were females.
2. The study indicates the responses drawn from majority customer of Big Bazaar falling in the
age group of 20-35 years.
3. The research shows that majority of the respondents surveyed were married and bachelor and
masters degree holder.
4. The research shows that majority of the respondents surveyed are full time employee having
income between 3-6 lacs and house wife also has their share of shopping.
44
Customer expectations and Customer Perceptions are subjective and are in a state of constant
flux and change. The findings therefore can be generalized to a given period, a pre-defined
market, and economic scenarios. Geo-demographic could have a great deal of influence on the
customer expectations and perceptions. It is also not amiss to mention here that the zone of
tolerance could vary from one customer to another. This variation has not been assessed in the
current study.
1. One of the major limitations of the study is that it is confined to only Big Bazaar store of West
Delhi region.
2. Due to limited available time, convenience sampling was used.
3. The sample size for conducting research is 124 which is very small as compared to total
customer base that means our sample size is comparatively small in accordance with the
universe, which is large enough. So deduction drawn from the project cant be generalized.
4. Scope of the project is limited to Delhi region only, that cant be generalized to the whole of
Big Bazaar customers.
5. Though quantitative approach has been followed in this research, it is still questionable
whether the results are generalised among all types of customers each of whom have different
intrinsic and extrinsic characteristics that affect buying behaviour.
6. This study tries to determine the relationship between dimensions of service quality and
customer Satisfaction. It ignores the effect of other variables which may have an impact on
customer satisfaction.
7. As this research is based upon responses provided by customer, so non-responses and some
wrong responses may become part of error.
45
These limitations may have effect on findings of the work but not up to large extent and thus do
not affect the findings of the work very significantly. Some of the respondents didnt like to share
their views and some were ignorant about the facts of Big Bazaar.
46
Chapter 5
47
RECOMMENDATIONS
This chapter includes the recommendations of the research project undertaken which includes
that the various suggestions given to the respective Big Bazaar Store so that the suggestions
helps them to understand the services nuances which affects customer satisfaction. The selected
Retail Store need to identify and undergo some suggestions being recommended in order to
understand and retain their customers.
5.1 Recommendations: The recommendations of the study thus conducted after all the tests and
analysis are as followsa. Its quite apparent from the responses of respondents that they are satisfied from services but
still there is some skepticism in minds of customers while transecting online with Big Bazaar. So
level of vulnerability needs to be decrease so as to bring more faith.
b. A major chunk of respondents were not satisfied with the knowledge level of employees
working in store because of high attrition rate. So its needed to make that rate low.
c. Some respondents have suggested to improve parking space for them because of high
inconvenience while shopping.
d. Some of the respondents didnt find trial rooms and rest rooms attractive. So its an alarming
call for some improvement as needed.
e. Queue System can also be taken under purview of alarming calls so that improvements can be
made as requirement by keeping competition in mind.
Biblography
48
Journals
i.
Jain, Sanjay K. and Garima Gupta (2004). Measuring Service Quality: SERVQUAL vs.
SERVPERF Scales, Vikalpa, 29 (2), 25-37
ii.
Mehta et al. (2000), A service quality model based on ideal value standard,
iii.
iv.
Reichheld, F. & Sasser, W.E., Jr. (1990). Zero defections: Quality comes to services. In
J.J. Sviokla & B.P. Shapiro (Eds.), Keeping customers (pp.311-324). Boston: Harvard
v.
BusinessReview.
Sureshchander, G.S., Rajendran, C., & Kamalanabhan, T.J. (2001). Customer perceptions
vi.
vii.
viii.
(2), 62-72
Ranaweera, C., and Prabhu, J. (2003). On the relative importance of customer satisfaction
and trust as determinants of customer retention and positive word of mouth. Journal of
ix.
49
x.
Shankar, V., Smith, A.K. and Rangaswamy, A. (2003), Customer satisfaction and loyalty
in online and offline environments, International Journal of Marketing, Vol. 20, pp. 152
175
Books
(Pearson education, 12 th edition),
i.
ii.
p.139,141,146.
Das, Satyabhushan, & Malhotra, Naresh K., (2011), Marketing Research: An Applied
iii.
iv.
2009.
Swapna Pradhan, Retail Management, McGraw Hill, New Delhi, Third
Edition, 2009
Weblinks
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
2015.
http://business.mapsofindia.com/india-retail-industry/ accessed on 12th february 2015.
http://articles.economictimes.indiatimes.com/2011-01-21/news/28426893_1_privatebrands-privatelabels-clean-mate accessed on 12th february 2015.
50
ix.
x.
http://www.moneycontrol.com/news/results/ttml-reports-net-lossrs-12291-cr-for-june-
xi.
xii.
xiii.
on
ANNEXURE- A
Questionnaire
I Ankur kumar a student of G.G.S Indraprashtha University is conducting a customer oriented
survey. The fundamental aim of this study is to understand The Customer Satisfaction of
Service Quality offered at Big Bazaar". Your frank and sincere reply will help me understand
the topic in detail and provide true results of the study. The details which will be revealed by you
in this questionnaire will be confidential and only be used for academic purpose.
SECTION: A
AGE:
20-35
36-45
45 & ABOVE
51
OCCUPATION
EMPLOYEE
SELF-EMPLOYED
HOUSEWIFE
UNEMPLOYED
SEX
MALE
FEMALE
EDUCATIONPRIMARY LEVEL
SECONDARY LEVEL
POST-GRADUATE OTHERS
MARITAL
STATUS
MARRIED
GRADUATE
UNMARRIED
INCOME (p.a)
< Rs.300, 000
Rs.600, 001 <
SECTION: B
Rate your answers on the following parameters (Please tick the option based on your
experience).
Highly Dissatisfied - (1),
Dissatisfied
- (2),
Neutral (3),
Satisfied (4),
2.
3.
4.
5.
6.
7.
products/services.
Usually I find high quality merchandise at Big Bazaar.
8.
I feel that promises made by Big Bazaar are not time bounded.
9.
10.
52
11.
SECTION: C
2.
3.
12.
13.
14.
15.
Suggestions Please :
53
ANNEXURE- B
Reliability statistics
The remaining output of reliability testing is as follows:
%
124
100.0
.0
124
100.0
Excluded
Total
Reliability Statistics
Cronbach's
Cronbach's
N of Items
Alpha
Alpha Based on
Standardized
Items
.813
.812
26
Item Statistics
Mean
Std. Deviation
VAR00001
3.8226
.66318
124
VAR00002
3.4839
.50177
124
VAR00003
2.0645
.68363
124
VAR00004
1.8629
.66668
124
54
VAR00005
1.8871
.75665
124
VAR00006
1.8065
.55109
124
VAR00007
2.7016
.93687
124
VAR00008
2.5484
.57530
124
VAR00009
2.6210
.56443
124
VAR00010
1.9194
.69372
124
VAR00011
1.8871
.62742
124
VAR00012
3.8952
.56767
124
VAR00013
3.6694
.80367
124
VAR00014
3.9516
.75282
124
VAR00015
3.8952
.56767
124
VAR00016
3.6694
.80367
124
VAR00017
3.9435
.74684
124
VAR00018
3.9839
.75422
124
VAR00019
3.8952
.56767
124
VAR00020
3.6290
.79088
124
VAR00021
3.9516
.75282
124
VAR00022
3.8387
.56146
124
VAR00023
3.7661
.74473
124
VAR00024
3.6371
.76864
124
VAR00025
3.9032
.57621
124
VAR00026
3.9677
.70924
124
Minimum
Maximum
Range
Maximum /
Variance
N of Items
Minimum
Item Means
3.239
1.806
3.984
2.177
2.205
.717
26
Item Variances
.474
.252
.878
.626
3.486
.022
26
Inter-Item Covariances
.136
-.184
.646
.830
-3.513
.017
26
Inter-Item Correlations
.284
-.287
1.000
1.287
-3.484
.065
26
55
56