Interim

INTERIM PROJECT REPORT
SIP 2010
An Analysis of the Factors affecting Customer

Satisfaction at Apparel Retail Outlets in Hyderabad
Submitted to:
Submitted by:
Dr. Nitin Gupta
Rahul Dutta Roy
Faculty Marketing,IBS Hyderabad
09BSHYD0625
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AN
INTERIM REPORT
ON
AN ANALYSIS OF THE FACTORS AFFECTING

CUSTOMER SATISFACTION AT APPAREL
RETAIL OUTLETS IN HYDERABAD
By
Rahul Dutta Roy
09BSHYD0625
Distribution List:
1. Dr.Nitin Gupta (Faculty Guide, IBS Hyderabad)
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2. Mr. Noor Khan. (Company Guide , IMRB International, Hyderabad)
TABLE OF CONTENTS
PAGE NO.
1. ABSTRACT 4
2. LIST OF ILLUSTRATIONS 5
3. INTRODUCTION 6-7
4.METHODOLOGY 8-10
a.QUESTIONNAIRE DESIGN 8
b.DATA COLLECTION 8
c.SCALING TECHNIQUES 8
d.PILOT TESTING 8
e.RELIABILITY STATISTICS 9
f.SAMPLING TECHNIQUES 10
5. QUALITATIVE ANALYSIS 11-15
6. QUANTITATIVE ANALYSIS 16-25
7. QUESTIONNAIRE 26-28
8.REFERENCE 29
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ABSTRACT
The apparel retail industry consists of the sale of all menswear, womenswear and childrenswear.The menswear
sector includes all garments made for men and boys. It includes both outer and under garments. The womens
wear sector consists of the retail sale of all womens and girls garments including dresses, suits and coats,
jackets, tops, shirts, skirts, blouses, sweatshirts,sweaters, underwear etc. The childrens wear sector is calculated
as sales of garments for children between the ages of 0-2 years.This study tries to analyze the factors which
influence customer satisfaction in the apparel retail outlets like shopper’s stop, pantaloons etc. The
questionnaire for this study is designed taking some guidelines from the questionnaire which is used in doing
the customer satisfaction project on behalf of Shopper’s Stop in IMRB and also doing some ethnographic study
in which data collection is often done through participant observation, interviews, questionnaires, etc those
variables are also incorporated which come up during the study .First the responses are taken from 50 people
and analyzed using Cronbach’s alpha to check for reliability of all the variables used in the questionnaire.After
getting a values of over 0.75 for all the factors under which the variables are grouped the data collection is
carried forward.The responses are taken from 226 people and finally using relevant statistical analysis tools in
SPSS the final recommendations are made as to how the retail store can improve their services to increase
customer satisfaction.As of now factor analysis has been used to reduce the variables into relevant broad factors
but factor analysis has not provided a suitable response so some other tests like anova,t-tests and multiple
regression have to be carried out on the data to make some meaningful interpretation of it.
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LIST OF ILLUSTRATIONS
PAGE NO.
1. TABLE 1 AND CHART 1 11

11. SPSS OUTPUT 1 16

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INTRODUCTION
1
The Indian retailing industry, which was traditionally dominated by small and family-run stores, has come of
age. The retail sector is the second largest employer after agriculture in the country and also the second largest
untapped market after China. There are some 12 million retail outlets in India.Besides, the country is also dotted
with low-cost kiosks and pushcarts. Organized retailing is only 2% of the total retail industry.Over the past
couple of years there have been sweeping changes in the general retailing business,mainly in apparel retailing
which was once strictly a made-to-order market for clothing has changedto a ready-to-wear market. Flipping
through a catalogue, picking the color, size and type of clothing a person wanted to purchase and then waiting to
have it sewn and shipped was standard practice.Fashion element and design content was minimal in the pre-
1990s, owing mainly to the lack of national level brands.At the turn of the century some retailers would have a
storefront where people could browse, and new pieces being sewn or customized in the back rooms. Among the
few players who have been catering to the branded market are Park Avenue, Charagh Din, Liberty, Double Bull,
Proline and Snowhite. It took a quite long time for brands such as Allen Solly and Van Heusen to create a
respectable market share in the ready-to-wear market. Big players like Tata, Raheja, Biyani, etc have intensified
the competition with their professional retail chains like Westside, Shopper’s Stop and Pantaloons. Recently,
India is increasingly being looked upon as a major supplier of high quality fashion apparels and Indian apparels
have come to be appreciated in major markets internationally.
2
Increasing penetration of organised retail
• Organised retail in India is largely restricted to the urban and semi-urban regions, with consumer exposure to
modern retailing formats like malls and stand-alone stores, etc., for specific product categories.
• Penetration of organised retail is projected to increase to 9.52 per cent in 2009-2010, with revenues from
organised retail touching US$ 43,829 million in 2009-2010.
• Clothing and textiles/apparel segment dominates the organised retail sector with revenues worth US$ 4.76
billion, contributing to over 36 per cent of the
organised retail pie.
• Apparel is one of the fastest growing verticals, with higher number of domestic and foreign brands, and
increasing consumer willingness to pay for quality.
• Footwear has the highest organised retail penetration, primarily due to players like Bata India Pvt. Ltd. and
Liberty, with wide distribution network and customer confidence
India Retail Market Statistics
720 million Indians to join consuming age by 2010
55% of the Indian population will be under 20 years of age by 2015
32% rise in urbanization by 2008
10% annual growth in Retail market since 2000
7% of the population is engaged in retailing
A booming US$ 300 billion retail market in India
5.5 retail outlets per 1000 population, highest in the world
25-30% annual growth in retail loans and credit cards
The organized retail sector currently accounts for around 5 per cent of the Indian retail market.
Organized Retail is predicted to capture 15 – 20% market share by 2010.
Over 100 malls of over 30 million sq feet of new shopping centre space are projected to open in India between
2009 and end-2010. retail
Readymade garment industry
The Domestic RMG industry is highly fragmented with a few players in organized sector
–This degree of fragmentation can be attributed to the erstwhile government policies
–Small and unorganized local players largely dominate the domestic RMG Market
–The domestic market worth Euro 13.64 billion can further be segmented into:
–Men’s wear segment
–Women’s wear segment
–Kid’s wear segment
Men’s Wear segment is estimated at 5.65 Euro billion in 2005-06 accounting for about 41.4%of the total
domestic RMG market•Segment has grown at a CAGR of around 8% from 2001-02 to 2005-06•
The Women’s Wear segment is estimated at 4.69 Euro billion in 2005-06 accounting for about 34.4%of the total
domestic RMG market •Segment has grown at a CAGR of 8 % from 2001-02 to 2005-06•
The Kid’s Wear segment is worth 3.30 Euro billion and accounts for about 24.2%of the total domestic RMG
market•segment has grown at a CAGR of 14% from 2001-02 to 2005-06•
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1
”Apparel Retailing in India” Cygnus Business Consulting & Research March 2004
2
”Retail” India Brand Equity Foundation December 2008
3
Major expansion plans in retail sector:
1. Marks & Spencer Reliance India is planning to open 35 more stores over the next five years, according to
Mark Ashman, CEO of the company. The 51:49 joint venture between UK‘s Marks and Spencer and Reliance
Retail Ltd already has 15 stores in India.
2. Carrefour SA, Europe‘s largest retailer, may start wholesale operations in India by 2010 and plans to set up its
first cash-and-carry outlet in the National Capital Region. Currently, Carrefour exports goods worth US$ 170
million from India to Europe, UAE, Indonesia, Europe, Thailand, Singapore and Malaysia.
3. Jewellery manufacturer and retailer, Gitanjali Group and MMTC are jointly setting up a chain of exclusive
retail outlets called Shuddi–Sampurna Vishwas. The joint venture, which plans to open around 60 stores across
India by end of this year, will retail hallmarked gold and diamond jewellery.
4. Mahindra Retail, a part of the US$ 6.7-billion Mahindra Group, plans to invest US$ 19.8 million by 2010 to
step up its specialty retail concept 'Mom and Me'.
5. Pantaloon Retail India (PRIL) plans to invest more than US$ 103.3 million to expand its seamless mall
Central and the value fashion format Brand Factory over the next two years.
6. Bharti Retail has introduced eight Wal-Mart private labels—including two of its largest, ‗Great Value‘ and
‗George‘—in its supermarket chain Easyday, hoping to attract more consumers with their international design
and packaging.
7. Italian sportswear brand Lotto will launch two new footwear brands Sabots and Calcetto in the country in the
next few weeks. The plan is to have at least 50 exclusive outlets by March 2010.
8. Steel players such as JSW Steel and Essar Steel are increasing their focus on opening up more retail outlets
pan India. JSW Steel currently has 50 such steel retail outlets called JSW Shoppe and is targeting to increase it
to 200 by March 2010. Similarly, Essar Steel also has such retail outlets called Essar hypermarts. With a total
150 such outlets currently, this segment contributes to about 20-25 per cent to the Essar‘s total revenue.
9. EBONY Homes, the home furniture retail arm of the US$ 3 billion DS Constructions, has plans to invest US$
25.1 billion to set up a chain of 20-25 furniture stores styled Ebony Gautier across the country by March 2012.
10. Gujarat Co-operative Milk Marketing Federation (GCMMF), which owns and markets Asia's largest dairy
brand, Amul, plans to add 6,000 Amul retail parlours across the country in FY 2009.
11. Many major international brands are also looking for a foothold in India. The brands planning an India entry
include The Pizza Company and Spicchio Pizza (both pizza chains from Thailand), Coffee Club from Australia,
Japanese brand Lolita Fashion, Revive Juice Bars from the UK, Mrs Fields Cookies and Jamba Juice from the
US, and French fashion brand Jules.
12. Retail brands such as United Colors of Benetton, Tommy Hilfiger and Puma are opening factory outlets to
sell excess stock and woo the price-conscious buyers
Venture into under penetrated markets
Rural Retailing According to India Retail Report 2009 by Images, "India's rural markets Offer a sea of
opportunity for the retail sector. The urban-retail split in consumer spending stands at 9:11, with rural India
accounting for 55 percent of private retail consumption." As per IBEF, rural India accounted for almost half of
the Indian retail market, which was worth about USD 300 billion. With most of the retail markets getting
saturated in Tier I and Tier II cities, the next phase of growth is likely to be seen in the rural markets. Major
domestic retailers have started setting up farm linkages. Few Examples include, DCM‘s Hariyali Kisan Bazaars,
Pantaloon Godrej‘s joint venture Aadhars, ITC‘s Choupal Sagars, Tata‘s Kisan Sansars and Reliance Fresh are
some of the established rural retail chains.
Impact on the traditional mom and pop stores
The answer could be a co-existence. The major advantage for the smaller players is the size, complexity and
diversity of our Indian Markets. It is too early to predict the erosion of the mom and pop stores in India. This is
also proved by countries where Wal Mart the world‘s biggest retailer operates. The smaller stores have a
peaceful coexistence in these countries with the number one company in the fortune 500 list.
ment Total retail Organised
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3
”Indian Retail Industry 2009” by Saurabh Gadkari 18th November 2009
METHODOLOGY
QUESTIONNAIRE DESIGN
The questionnaire is designed taking some guidelines from the questionnaire which is used in doing the
customer satisfaction project on behalf of Shopper’s Stop during the SIP in IMRB and also doing some
ethnographic study in which data collection is often done through participant observation, interviews,
questionnaires, etc those variables are also incorporated which come up during the study
DATA COLLECTION
Primary data for the research was collected through a structured questionnaire based survey interview. After
designing the questionnaire the responses were taken from people who had shopped from any apparel retail
outlet in the past three months.The places visited for getting the responses were shopping malls like GVK
one ,Central, City Center, Lifestyle etc to ensure diversity of respondents. The data was taken from 226
respondents comprising of both young and middle aged people in different income groups with different marital
status and having a proper mix of males and females. This ensured that the responses are not biased.
SCALING TECHNIQUES
Measuring the attitudes and the opinion of the customers is a highly difficult process and so scaling proves to be
a useful technique. Scaling is a process of measuring the quantitative aspects of subjective concepts. A 5-point
Likert scale was used to let the customers rank the different variables influencing satisfaction levels from 1-5,
5 being of the highest weight-age.
5.Excellent 4.Very good 3.Good 2.Fair 1.Poor
PILOT TESTING
A pilot test was conducted with a sample of 50 respondents prior to conducting the actual interviews and the
survey. This was done mainly to test the language of the questionnaire and know whether the respondents
interpreted the question as intended or not. Cronbach’s alpha is commonly used as a measure of the internal
consistency or reliability of a psychometric test score for a sample of examinees.The Cronbach’s alpha is
administered separately to the different variables based on the 8 different heading under which the variables are
grouped like store, display, merchandise ,sales personnel, billing, sales promotion and advertisements, alteration
and exchange.
RELIABILITY STATISTICS
STORE
Cronbach's
Alpha N of Items
.842 8
DISPLAY
Cronbach's
Alpha N of Items
.767 4
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MERCHANDISE
Cronbach's
Alpha N of Items
.812 6
SALES PERSONNEL
Cronbach's
Alpha N of Items
.890 5
BILLING
Cronbach's
Alpha N of Items
.814 4
SALES PROMOTION AND ADVERTISEMENTS

Cronbach's
Alpha N of Items
.810 5
ALTERATION
Cronbach's
Alpha N of Items
.841 4
EXCHANGE
Cronbach's
Alpha N of Items
.872 3
The Cronbach’s Alpha shows about the reliability of the questionnaire taking into account the 8 main aspects
under which the 39 variables are grouped. A high alpha (.7 and higher) would be consistent with the hypothesis
that all of the scale items are measuring the same construct.After getting a suitable value of alpha which is
above .75 for all the cases the questionnaire is administered to the remaining respondents and data collection is
continued smoothly.
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SAMPLING TECHNIQUES
The techniques used for the analysis till this time is Factor analysis in which the number of variables are
reduced into factors which enables further analysis of them easy.
Factor analysis is a general name denoting a class of procedures primarily used for data reduction and
summarization. In business research, there may be a large number of variables, most of which are correlated and
must be reduced to a manageable level. Relationships among sets of many interrelated variables are examined
and represented in terms of a few underlying factors. Factor analysis is an independent technique in the entire
set of interdependent relationships examined. Each variable in factor analysis is expressed as a linear
combination of the underlying factors. Likewise the factors themselves can be expressed as linear combinations
of the observed variables. The factors are extracted in such a way that the first factor accounts for the highest
variance in the data, the second next highest and so on. Additionally it is possible to extract the factors so that
the factors are uncorrelated. In formulating the factor analysis problem, the variables to be included in the
analysis should be specified based on the past research, theory, and the judgment of the researcher. These
variables should be measured on the interval or ratio scale. Factor analysis is based on a matrix of correlation
between the variables.Here we had 39 variables identified hence it became difficult to interpret and understand
them individually.hence we applied this data reduction technique to make our job simple.With less number of
factors it becomes easy to clearly identify what is important and what is not important.
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QUALITATIVE ANALYSIS
The survey was administered to 226 respondents out of which there where 150 male and 76 female.There were
mostly people from 20-25,26-30 and 31-35 age groups with more than 35 years people forming the rest.There
was 127 people who were single and 99 were married.There were people from different income groups with
maximum people from 0-20000,20000-40000 and 40000-60000 groups.Among the retails stores visted regularly
Shoppers Stop and Pantaloons top the list.
GENDER NUMBER OF RESPONDENTS

MALE 150
FEMALE 76
TABLE 1 AND CHART 1: GENDER WISE PROPOTION OF RESPONDENTS
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AGE GROUP NUMBER OF RESPONDENTS
20-25 YEARS 92
26-30 YEARS 46
31-35 YEARS 38
36-40 YEARS 23
41-45 YEARS 17
MORE THAN 45 YEARS 10
TABLE 2 AND CHART 2: AGE GROUP WISE PROPOTION OF RESPONDENTS
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MARITAL
NUMBER OF RESPONDENTS
STATUS
SINGLE 127
MARRIED 99
TABLE 3 AND CHART 3: MARITAL STATUS WISE PROPOTION OF RESPONDENTS
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MONTHLY HOUSEHOLD
INCOME GROUP ( RS.)
0-20000 62
20000-40000 58
40000-60000 58
60000-80000 13
80000-100000 12
MORE THAN 100000 23
TABLE 4 AND CHART 4: MONTHLY HOUSEHOLD INCOME GROUP WISE PROPOTION OF

RESPONDENTS
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NAME OF THE APPAREL
RETAIL OUTLET
SHOPPER’S STOP 62
PANTALOONS 34
LIFESTYLE 23
CENTRAL 16
UNITED COLORS OF
16
BENETTON
CITY CENTRE 14
WILLS LIFESTYLE 14
WESTSIDE 13
OTHERS 34
TABLE 5 AND CHART 5: APPAREL RETAIL OUTLETS WISE PROPOTION OF RESPONDENTS
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QUANTITATIVE ANALYSIS
SPSS OUTPUT 1
SPSS Output 1 shows the Kaiser-Meyer-Olkin measure of sampling adequacy and Bartlett's test of sphericity.
a. The KMO statistic varies between 0 and 1. A value of 0 indicates that the sum of partial correlations is large
relative to the sum of correlations, indicating diffusion in the pattern of correlations (hence, factor analysis is
likely to be inappropriate). A value close to 1 indicates that patterns of correlations are relatively compact and
so factor analysis should yield distinct and reliable factors. Kaiser (1974) recommends accepting values greater
than 0.5 as acceptable. Furthermore, values between 0.5 and 0.7 are mediocre, values between 0.7 and 0.8 are
good, values between 0.8 and 0.9 are great and values above 0.9 are superb.
For our data the value is 0.876, which falls into the range of being great. Hence, the factor analysis is
appropriate for our data.
b. Bartlett's measure tests the null hypothesis that the original correlation matrix is an identity matrix. For factor
analysis to work we need some relationships between variables and if the R-matrix were an identity matrix then
all correlation coefficients would be zero. Therefore, we want this test to be significant (i.e. have a significance
value less than 0.05). A significant test tells us that the R-matrix is not an identity matrix; therefore, there are
some relationships between the variables we hope to include in the analysis. For these data, Bartlett's test is
highly significant (p < 0.001), and therefore factor analysis is appropriate
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SPSS OUTPUT 2
SPSS Output 2 lists the Eigen values associated with each linear component (factor) before extraction, after
extraction and after rotation. Before extraction, SPSS has identified 39 linear components within the data set
(we know that there should be as many eigenvectors as there are variables and so there will be as many factors
as variables). The Eigen values associated with each factor represent the variance explained by that particular
linear component and SPSS also displays the Eigen value in terms of the percentage of variance explained. So,
factor 1 explains 34.047% of total variance. It should be clear that the first explains relatively large amounts of
variance whereas subsequent factors explain only small amounts of variance. SPSS then extracts all factors with
Eigen values greater than 1, which leaves us with nine factors. The Eigen values associated with these factors
are again displayed (and the percentage of variance explained) in the columns labeled Extraction Sums of
Squared Loadings. In the final part of the table (labeled Rotation Sums of Squared Loadings), the Eigen values
of the factors after rotation are displayed. Rotation has the effect of optimizing the factor structure and one
consequence for these data is that the relative importance of the thirty factors is equalized. Before rotation,
factor 1 accounted for considerably more variance than the remaining three, however after extraction it accounts
for only 12.358% of variance.
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SPSS OUTPUT 3
SPSS Output 3 shows the table of communalities before and after extraction. Principal component analysis
works on the initial assumption that all variance is common;therefore, before extraction the communalities are
all 1. The communalities in the column labelled Extraction reflect the common variance in the data structure.
So, for example, we can say that 64.1% of the variance associated with question 1 is common, or shared
variance. Another way to look at these communalities is in terms of the proportion of variance explained by the
underlying factors. After extraction some of the factors are discarded and so some information is lost. The
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amount of variance in each variable that can be explained by the retained factors is represented by the
communalities after extraction.
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SPSS OUTPUT 4
SPSS output 4 also shows the component matrix before rotation. This matrix contains the loadings of each
variable onto each factor. loadings.. At this stage SPSS has extracted nine factors . This output also shows the
component matrix before rotation.. By default SPSS displays all loadings; however, loadings less than 0.5 were
asked to be suppressed in the output and so there are blank spaces for many of the loadings.
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Scree Plot
14
12
10
Eigenvalue
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39
Component Number
SPSS OUTPUT 5
The Eigen values for successive factors can be displayed in a simple line plot.Cattell (1966) proposed that this
scree plot can be used to graphically determine the optimal number of factors to retain. A scree plot shows the
sorted Eigen values, from large to small, as a function of the Eigen value index. Another rule of thumb is to plot
all the Eigen values in their decreasing order. The plot looks like the side of a mountain, and "scree" refers to the
debris fallen from a mountain and lying at its base.So the scree test proposes to stop analysis at the point the
mountain ends and the debris (error) begins. In this instance, that point coincides with the Eigen value criterion.
One rule is to consider only those with Eigen values over 1.
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SPSS OUTPUT 6
SPSS Output 6 shows the rotated component matrix (also called the rotated factor matrix in factor analysis)
which is a matrix of the factor loadings for each variable onto each factor. This matrix contains the same
information as the component matrix in SPSS Output 5 except that it is calculated after rotation. Comparing this
matrix with the un-rotated solution, before rotation, most variables loaded highly onto the first factor and the
remaining factors didn't really get a look in. However, the rotation of the factor structure has clarified things
considerably: there are nine factors and variables load very highly onto only one factor. The factor loadings less
than 0.5 have not been displayed because loadings less than 0.5 were asked to be suppressed in the output and so
there are blank spaces for many of the loadings.
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From the Rotated Component Matrix it can be observed that there is high cross loading between the factors and
hence one variable does not highly load on one specific factor so Factor analysis is not giving the appropriate
result as expected.In SPSS OUTPUT 6 it can be seen that only Convenience of location of the Store loads
highly on Factor 9 and it can be seen that 83.9% of the variance in the variable Convenience of location of the
Store can be explained by Factor 9 which is a good result in Factor Analysis but in the other cases it is seen that
Factor 2 can only explain 52.4 % of the variance in the variable Courtesy of the cashier at the billing counter
and 47.6% of the variance is not accounted for by the factor.In this case it is seen that when Factor loading less
than 0.5 were asked to be suppressed variables like Customer friendliness of the store did not sufficiently load
on even one factor so the variance in it cannot be sufficiently explained by even one factor so again it is seen
that Factor Analysis is not an appropriate measure for the data.
So The Data is broken down based on the four demographic Factors
1.Income
2.Age
3.Marital Status
4.Gender
FACTOR ANALYSIS BASED ON DEMOGRAPHIC FACTORS

1.BASED ON INCOME
The Data is broken down into 4 categories and it is analyzed using Factor Analysis in SPSS:
1.INCOME between Rs 0-20000: The Kaiser-Meyer-Olkin measure of sampling adequacy shows result as
0.684 which is acceptable as it is over 0.5 and and Bartlett's test of sphericity shows the significance level as 0
which is less than 0.01 so Factor Analysis is appropriate for this sample.In the Total Variance Explained table
the Eigen values associated with each factor represent the variance explained by that particular linear
component and SPSS also displays the Eigen value in terms of the percentage of variance explained. So, factor 1
explains 41.861% of total variance. SPSS then extracts all factors with Eigen values greater than 1, which leaves
us with eight factors.The Rotated Component Matrix shows the factor loadings for each variable onto each
factor. This matrix contains the same information as the Component matrix except that it is calculated after
rotation
Here also there is the problem of high cross loadings among the factors , Clarity Of Message conveyed in the
advertisement loads highly on Factor 6 and it can be seen that 81.5% of the variance in the variable Clarity Of
Message conveyed in the advertisement can be explained by Factor 6 which is a good result in Factor Analysis
but in the other cases it is seen that Factor 2 can only explain 59.4 % of the variance in the variable Politeness
and courtesy of the sales person and 40.6% of the variance is not accounted for by the factor.In this case it is
seen that when Factor loading less than 0.5 were asked to be suppressed variables like Spaciousness of the store
did not sufficiently load on even one factor so the variance in it cannot be sufficiently explained by even one
factor so again it is seen that Factor Analysis is not an appropriate measure for the data.
2.INCOME between Rs 20000-40000: The Kaiser-Meyer-Olkin measure of sampling adequacy shows result
as 0.528 which is acceptable as it is over 0.5 and and Bartlett's test of sphericity shows the significance level as
0 which is less than 0.01 so Factor Analysis is appropriate for this sample.In the Total Variance Explained
table the Eigen values associated with each factor represent the variance explained by that particular linear
us with eleven factors.The Rotated Component Matrix shows the factor loadings for each variable onto each
rotation.Here also there is the problem of high cross loadings among the factors , Convenience of Location of
the store loads highly on Factor 6 and it can be seen that 82.5% of the variance in the variable Convenience of
Location of the store can be explained by Factor 6 which is a good result in Factor Analysis but in the other
cases it is seen that Factor 6 can only explain 53.8 % of the variance in the variable Store timings and 46.2% of
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the variance is not accounted for by the factor.In this case it is seen that when Factor loading less than 0.5 were
asked to be suppressed variables like Customer friendliness of the store did not sufficiently load on even one
factor so the variance in it cannot be sufficiently explained by even one factor so again it is seen that Factor
Analysis is not an appropriate measure for the data.
3.INCOME between Rs 40000-60000: The Kaiser-Meyer-Olkin measure of sampling adequacy shows result
as 0.408 which is not acceptable as it is under 0.5 and Bartlett's test of sphericity shows the significance level
as 0 which is less than 0.01 but as KMO test is not applicable so Factor Analysis is not appropriate for this
sample.
.
4.INCOME more than Rs 60000: The Kaiser-Meyer-Olkin measure of sampling adequacy shows result as
0.158 which is not acceptable as it is under 0.5 and Bartlett's test of sphericity shows the significance level as 0
which is less than 0.01 but as KMO test is not applicable so Factor Analysis is not appropriate for this sample.
2.BASED ON MARITAL STATUS

1.MARRIED: The Kaiser-Meyer-Olkin measure of sampling adequacy shows result as 0.745 which is
acceptable as it is over 0.5 and and Bartlett's test of sphericity shows the significance level as 0 which is less
than 0.01 so Factor Analysis is appropriate for this sample.In the Total Variance Explained table the Eigen
values associated with each factor represent the variance explained by that particular linear component and
SPSS also displays the Eigen value in terms of the percentage of variance explained. So, factor 1 explains
30.674% of total variance. SPSS then extracts all factors with Eigen values greater than 1, which leaves us with
ten factors.The Rotated Component Matrix shows the factor loadings for each variable onto each factor. This
matrix contains the same information as the Component matrix except that it is calculated after rotation
Here also there is the problem of high cross loadings among the factors , Adequacy of trial rooms loads highly
on Factor 8 and it can be seen that 84.7% of the variance in the variable Adequacy of trial rooms can be
explained by Factor 8 which is a good result in Factor Analysis but in the other cases it is seen that Factor 1 can
only explain 50.6 % of the variance in the variable Spaciousness in the store and 49.4% of the variance is not
accounted for by the factor.In this case it is seen that when Factor loading less than 0.5 were asked to be
suppressed variables like Customer friendliness of the store did not sufficiently load on even one factor so the
variance in it cannot be sufficiently explained by even one factor so again it is seen that Factor Analysis is not
an appropriate measure for the data.
2.SINGLE: The Kaiser-Meyer-Olkin measure of sampling adequacy shows result as 0.853 which is
nine factors.The Rotated Component Matrix shows the factor loadings for each variable onto each factor.
This matrix contains the same information as the Component matrix except that it is calculated after rotation
Here also there is the problem of high cross loadings among the factors , Frequency of Sales promotions loads
highly on Factor 2 and it can be seen that 82.7% of the variance in the variable Frequency of Sales promotions
can be explained by Factor 2 which is a good result in Factor Analysis but in the other cases it is seen that
Factor 1 can only explain 50.5 % of the variance in the variable Courtesy of the cashier at the billing counter
and 49.5% of the variance is not accounted for by the factor.In this case it is seen that when Factor loading less
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than 0.5 were asked to be suppressed variables like Attractiveness of the display did not sufficiently load on
even one factor so the variance in it cannot be sufficiently explained by even one factor so again it is seen that
Factor Analysis is not an appropriate measure for the data.
3.BASED ON AGE
1.AGE BETWEEN 20-25 Years: The Kaiser-Meyer-Olkin measure of sampling adequacy shows result as
0.814 which is acceptable as it is over 0.5 and and Bartlett's test of sphericity shows the significance level as 0
which is less than 0.01 so Factor Analysis is appropriate for this sample.In the Total Variance Explained table
the Eigen values associated with each factor represent the variance explained by that particular linear
us with nine factors.The Rotated Component Matrix shows the factor loadings for each variable onto each
rotation.Here also there is the problem of high cross loadings among the factors , Convenience of Location of
the store loads highly on Factor 5 and it can be seen that 84.6% of the variance in the variable Convenience of
Location of the store can be explained by Factor 5 which is a good result in Factor Analysis but in the other
cases it is seen that Factor 1 can only explain 50.2 % of the variance in the variable Courtesy of the cashier at
the billing counter and 49.8% of the variance is not accounted for by the factor.In this case it is seen that when
Factor loading less than 0.5 were asked to be suppressed variables like Proper labeling of product details and
prices did not sufficiently load on even one factor so the variance in it cannot be sufficiently explained by even
one factor so again it is seen that Factor Analysis is not an appropriate measure for the data.
2.AGE BETWEEN 26-30 Years: The Kaiser-Meyer-Olkin measure of sampling adequacy shows result as
0.103 which is not acceptable as it is under 0.5 and Bartlett's test of sphericity shows the significance level as 0
which is less than 0.01 but as KMO test is not applicable so Factor Analysis is not appropriate for this sample
3.AGE OVER 30 Years: The Kaiser-Meyer-Olkin measure of sampling adequacy shows result as 0.721
which is acceptable as it is over 0.5 and and Bartlett's test of sphericity shows the significance level as 0 which
is less than 0.01 so Factor Analysis is appropriate for this sample.In the Total Variance Explained table the
Eigen values associated with each factor represent the variance explained by that particular linear component
and SPSS also displays the Eigen value in terms of the percentage of variance explained. So, factor 1 explains
matrix contains the same information as the Component matrix except that it is calculated after rotation
Here also there is the problem of high cross loadings among the factors , Convenience of Location of the store
loads highly on Factor 10 and it can be seen that 85.0% of the variance in the variable Convenience of Location
of the store can be explained by Factor 10 which is a good result in Factor Analysis but in the other cases it is
seen that Factor 5 can only explain 52.2 % of the variance in the variable Availability of merchandise within the
promotion and 47.8% of the variance is not accounted for by the factor.In this case it is seen that when Factor
loading less than 0.5 were asked to be suppressed variables like Store timings did not sufficiently load on even
one factor so the variance in it cannot be sufficiently explained by even one factor so again it is seen that Factor
Analysis is not an appropriate measure for the data.
25 | P a g e
4.BASED ON GENDER
The Data is broken down into 2 categories and it is analyzed using Factor Analysis in SPSS
1.FEMALE: The Kaiser-Meyer-Olkin measure of sampling adequacy shows result as 0.653 which is
matrix contains the same information as the Component matrix except that it is calculated after rotation.Here
also there is the problem of high cross loadings among the factors , it can be seen that 88.3% of the variance in
the variable Ability of sales person to respond to queries in a satisfactory manner can be explained by Factor 2
which is a good result in Factor Analysis but in the other cases it is seen that Factor 1 can only explain 50.8 %
of the variance in the variable Spaciousness in the store and 49.2% of the variance is not accounted for by the
factor.In this case it is seen that when Factor loading less than 0.5 were asked to be suppressed variables like
Customer friendliness of the store did not sufficiently load on even one factor so the variance in it cannot be
sufficiently explained by even one factor so again it is seen that Factor Analysis is not an appropriate measure
for the data.
2.MALE: The Kaiser-Meyer-Olkin measure of sampling adequacy shows result as 0.840 which is acceptable
as it is over 0.5 and and Bartlett's test of sphericity shows the significance level as 0 which is less than 0.01 so
Factor Analysis is appropriate for this sample.In the Total Variance Explained table the Eigen values
associated with each factor represent the variance explained by that particular linear component and SPSS also
displays the Eigen value in terms of the percentage of variance explained. So, factor 1 explains 36.695% of total
variance. SPSS then extracts all factors with Eigen values greater than 1, which leaves us with nine factors.The
Rotated Component Matrix shows the factor loadings for each variable onto each factor. This matrix contains
the same information as the Component matrix except that it is calculated after rotation.Here also there is the
problem of high cross loadings among the factors , Convenience of Location of the store loads highly on Factor
6 and it can be seen that 86.6% of the variance in the variable Ease of exchange can be explained by Factor 6
which is a good result in Factor Analysis but in the other cases it is seen that Factor 7 can only explain 51.2 %
of the variance in the variable Availability of merchandise within the promotion and 48.8% of the variance is
not accounted for by the factor.In this case it is seen that when Factor loading less than 0.5 were asked to be
suppressed variables like Customer friendliness of the store did not sufficiently load on even one factor so the
variance in it cannot be sufficiently explained by even one factor so again it is seen that Factor Analysis is not
an appropriate measure for the data.
26 | P a g e
QUESTIONNAIRE
Dear respondent,
I shall be thank full to you if you can spend a few minutes in filling up the following questionnaire .Please be
assured that your answer will be kept confidential and will be used for academic purpose only.
1) Given below are certain attributes that measure the level of customer satisfaction for an apparel retail
outlet (for eg: Wills Lifestyle, Color Plus, Zodiac, Shoppers Stop, Pantaloons, Westside etc.) You are
requested to rate each attribute on a scale mentioned in the table.
Mention the name of one apparel retail outlet that you visit on a regular basis for shopping:
______________________________________________________________________________
Please keep the above mentioned store in your mind and answer the following questions.
NOTE: Merchandise means apparel including ready made clothes and accessories like belts, sunglasses etc.
Particulars Poor Fair Good Very Excellent

Good
I. STORE
Customer friendliness of the store.
Convenience of location of the store.
Spaciousness in the store.
Availability of seating space in the store.
Adequacy of trial rooms.
Store timings.
Availability of adequate parking space.
Air conditioning/ Temperature
II. DISPLAY
Attractiveness of the display.
Proper labeling of product details and prices

Convenient and organized arrangement of
merchandize
Adequacy of mannequins.
III. MERCHANDISE
Quality of all products/merchandise that you have
purchased.
Availability of the latest merchandise.
Availability of different styles in merchandise.
27 | P a g e
Good
Availability of sizes in merchandise.
Availability of colors in merchandise to suit your
choice.
Availability of products/merchandise in a variety
of price range.
IV. SALES PERSONNEL
Appearance and grooming of sales person.
Availability of sales person when required by you.
Politeness and courtesy of sales person.

Ability of the sales person to respond to queries in
a satisfactory manner.
Helpfulness of the sales person.
V. BILLING
Waiting time in the queue for the purpose of
billing.
Accuracy and simplicity of billing.
Courtesy of the cashier at the billing counter.
Adequacy of billing counters.
VI. SALES PROMOTIONS AND AD CAMPAIGNS
Attractiveness of sales promotion.
Frequency of sales promotions.

Availability of merchandise within the
promotions.
Visibility of ad campaign.
Clarity of message conveyed in advertisements.
VII. ALTERATION
Helpfulness of the customer care associate at the
alteration desk.
Time taken for alteration.
Quality of alteration work done.
Accuracy of alteration work done.
VIII. EXCHANGE
Helpfulness of the sales person in getting the
product exchanged.
Good
28 | P a g e
Flexibility of exchange policy.
Ease of exchange.
IX. OVERALL RATING OF YOUR SHOPPING EXPERIENCE IN THE STORE

Based on all the above mentioned factors how
would you rate the overall quality of shopping
experience provided by the store.
2) Gender
o Male
o Female
3) Age
o 20-25 years
o 26-30 years
o 31-35 years
o 36-40 years
o 41-45 years
o More than 45 years
4) Marital Status
o Single
o Married
5) Monthly Family Income ( In Rupees)
o 0-20000
o 20000-40000
o 40000-60000
o 60000-80000
29 | P a g e
o 80000-100000
o More than 100000
We appreciate your cooperation in sparing your valuable time and completing the questionnaire.
Thank You
REFERENCE
1. http://www.scribd.com/doc/22694630/India-Retail-Industry-analysis.
2. http://en.wikipedia.org/wiki/Cronbach%27s_alpha
3. “http://www.marketresearch.com/”
4. Apparel Retailing in India” Cygnus Business Consulting & Research March 2004
5. Retail” India Brand Equity Foundation December 2008
6. http://ibef.org/
30 | P a g e

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INTERIM PROJECT REPORT

An Analysis of the Factors affecting Customer

AN ANALYSIS OF THE FACTORS AFFECTING

Rahul Dutta Roy

1. TABLE 1 AND CHART 1 11

11. SPSS OUTPUT 1 16

SALES PROMOTION AND ADVERTISEMENTS

GENDER NUMBER OF RESPONDENTS

TABLE 1 AND CHART 1: GENDER WISE PROPOTION OF RESPONDENTS

TABLE 2 AND CHART 2: AGE GROUP WISE PROPOTION OF RESPONDENTS

TABLE 3 AND CHART 3: MARITAL STATUS WISE PROPOTION OF RESPONDENTS

TABLE 4 AND CHART 4: MONTHLY HOUSEHOLD INCOME GROUP WISE PROPOTION OF

TABLE 5 AND CHART 5: APPAREL RETAIL OUTLETS WISE PROPOTION OF RESPONDENTS

FACTOR ANALYSIS BASED ON DEMOGRAPHIC FACTORS

2.BASED ON MARITAL STATUS

Particulars Poor Fair Good Very Excellent

Customer friendliness of the store.

Convenience of location of the store.

Spaciousness in the store.

Availability of seating space in the store.

Adequacy of trial rooms.

Availability of adequate parking space.

Air conditioning/ Temperature

Attractiveness of the display.

Proper labeling of product details and prices

Availability of different styles in merchandise.

Appearance and grooming of sales person.

Availability of sales person when required by you.

Politeness and courtesy of sales person.

Courtesy of the cashier at the billing counter.

Adequacy of billing counters.

VI. SALES PROMOTIONS AND AD CAMPAIGNS

Attractiveness of sales promotion.

Frequency of sales promotions.

Clarity of message conveyed in advertisements.

Quality of alteration work done.

Accuracy of alteration work done.

IX. OVERALL RATING OF YOUR SHOPPING EXPERIENCE IN THE STORE

o More than 45 years

5) Monthly Family Income ( In Rupees)

o More than 100000

5. Retail” India Brand Equity Foundation December 2008

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