Service Marketing Assignment on

NATURES BASKET

SUBMITTED BY:
ABHAY PRABHU(A003)
APOORVA SINGH(B009)
ANKUR AGGARWAL(B006)
RAHUL TULI(C033)
SONAKSHI VIJ(A050)
 KEY DRIVERS OF CUSTOMER SATISFACTION

Based on our understanding of the target segment of Natures Basket, we included the
following anonymous participants in the Focus Group:

A Loyal Customer
A Regular Customer
An impulsive Buyer
A person who has never shopped at Natures basket
A person who shops at direct competition
A person who shops at indirect competition Commented [bn1]: Are these online or off-line
customers?
The demographics that we considered while deciding on the focus group members are as Are the drivers any different between online versus off-line?
follows:

Age group 20 to 30
Health Oriented
Strong Financial Background
Cooking Enthusiasts
Good Knowledge about food
Peculiar taste in food
Through a 30-minute discussion, we identified the following Keys drivers for customers
satisfaction:

Reliability: Error Free Billing & Accurate Order Fulfilment

Assurance: Knowledgeable Employees & Quality Products
Tangibles: Physical Store (Layout, Display, Spacings, etc) & Packaging
Empathy: Clear Understanding of Customer Needs
Responsiveness: Personal Attention & waiting Time

Through these findings, we decided upon the questions to be asked in the questionnaire,
which incorporated all these aspects, for further data analysis.
(The questions are included in the appendix attached at the end of the document)
 CUSTOMER SATISCATION DATA ON KEY DRIVERS

Please Find Attached the Data Sheet containing the various responses to the questionnaire
floated:
Response Sheet (The questions are included in the appendix attached at the end of the
document)

SERVQUAL GAP

Based on the RATER aspects mentioned earlier, we framed a total of 9 pairs of questions, which Commented [bn2]: Are there any already existing
provided customer inputs on expectation levels of these aspects and Natures Baskets performance in questionnaires for online service quality? If the customers
are entirely off-line, why not adapt the 22 item
regards to the same. Through this, the Q (Performance-Expectations) score of each set of questions questionnaire of Parasuraman et. al.
are as follows:

Q1 - 0.770491803 - Error Free Billing

Q2 - (0.770491803) - Accurate Order Fulfilment

Q3 - 0.42623 - Knowledgeable Employees

Q4 - 0.032787 - Quality Products

Q5 - (0.70492) - Physical Store (Layout, Display, Spacings, etc)

Q6 - (0.2459) - Packaging

Q7 - (0.88525) - Clear Understanding of Customer Needs

Q8 - (0.2459) - Personal Attention

Q9 (0.22951) - waiting Time Commented [bn3]: What the specific quality score for the
5 RATER dimensions?
What does numbers in parenthesis mean?

Further, taking the cumulative average of the above-mentioned variables:

SERVQUAL GAP = AVG (Q1:Q9) = (0.20583)
 NET PROMOTORS SCORE

Net Promoter Score, commonly referred to as NPS, is a customer loyalty metric that gauges
how willing a customer is to recommend a product or service. The following pie chart depicts
the percentage of customer ratings for recommending Natures Basket:

NPS SCORE
60
50
PERCENTAGES (%)

50
40
30 34.36
20
10 15.63
0
DETRACTORS PASSIVES PROMOTORS

The above table shows the result of the NPS score obtained for Natures Basket.
NPS Score = Promoters Percentage Detractors Percentage
= 15.63 34.36
= -18.73
This means there are approximately 19% more Detractors than promotors.

Although the Detractors are high in number, the NPS Score Chart shows that the company
has a large percentage of the regular customers lying in the Passive segment. This provides a
great opportunity for the company to work on the customers research data to push Passives
into the Promotors segment.

MAPPING COMPETITIVE SPACE THROUGH MDS

Following are the competitors of Natures Market. Commented [bn4]: Any bases for considering these as
competitors and the reasons for selecting these 5
1. Carrefour specifically?
2. GrocShop
3. Peppertap
4. Grofers
5. Zopnow

The matrix plots for of Natures Basket with the competitors plotted below:

Nature's Basket Carrefour GrocShop Peppertap Grofers Zopnow

Nature's Basket X 6 3 4 5 7

Carrefour X X 12 10 13 15

GrocShop X X X 11 1 14

Peppertap X X X X 9 8

Grofers X X X X X 2

Zopnow X X X X X X

The fitness and stress measures are shown below:

Stress and Fit Measures
Dimensionality: 1
Normalized Raw Stress .15242
Stress-I .39041i
Stress-II .78655i
S-Stress .34580j
Dispersion Accounted For .84758
(D.A.F.)
Tucker's Coefficient of .92064
Congruence

PROXSCAL minimizes Normalized Raw

Stress.
i. Optimal scaling factor = 1.180.
j. Optimal scaling factor = .932.

The plot is on the assumption of min value=1 and max value =6.
After the plot, we could see that max value =2 could also be sufficient as the graph becomes
stable at value=2 followed by negligible variations if max value is taken above 2
 Commented [bn5]: What are your explanations for these
2 dimensions? What would these 2 dimensions be? Which
specific attributes may be loaded on each dimension?

The above diagram represents the SPSS output of Multi-Dimensional Scale Perceptual Map.

IMPACT OF SERVQUAL AND CUSTOMER SATISFACTION ON

NPS

Here, considering reliability, assurance, Tangibles, Empathy, and Responsiveness as independent

variables, and NPS as the dependant variable; the relationship equation forms as:

NPS= Beta1*reliability + Beta2*assurance + Beta3*Tangibles + Beta4*Empathy + Beta5*

Responsiveness + Error

But due to lack of data points, we could not regress the independent variables on the dependant
variable, as the minimum number of data points(N) required is atleast 5, to give us an accurate result.
Commented [bn6]: NPS is dependent on the loyalty score
(likelihood of suggesting to a friend). The higher the loyalty
the more likely the NPS goes up. Treat loyalty measure as a
surrogate for NPS.
 APPENDIX

Questionnaire in terms of the various aspects considered in calculating NPS and SERVQUAL.
Reliability-
1. How important is it to avoid any duplicity/errors in the billing process? (1 being least
to 5 being very important)
2. Have you ever faced such issues in natures basket? (1 very frequently to 5 being never)
3. How important is availability and delivery of assortments in a retail outlet? (1 being
least to 5 being very important)
4. How would you rate natures basket on our product availability and delivery? (1 being
least to 5 being very important)
Assurance-
1. How important is employee awareness about available product in a retail outlet? (1
being least to 5 being very important)
2. How educated are our employees regarding the companies offerings? (1 being
unaware to 5 being extremely aware)
3. How important is the quality of assortments available at a retail outlet? (1 being least
to 5 being very important)
4. How would you rate our products? (1 being least to 5 being very important)
Tangibility-
1. How important is the physical layout of the store and its amenities? (1 being least to
5 being very important)
2. How would you rate Natures Basket on this attribute? (1 being least to 5 being very
important)
3. How important is the packaging and display of products in a retail outlet? (1 being
least to 5 being very important)
4. How would you rate Natures Basket on this attribute? (1 being least to 5 being very
important)
Empathy-
1. How important is employee understanding of regular customers in achieving
customer loyalty? (1 being least to 5 being very important)
2. Are our Staff aware of your peculiar needs? (1 being least to 5 being very important)
Responsiveness-
1. How important is staff availability and personal attention in a retail outlet? (1 being
least to 5 being very important)
2. How would you rate Natures Basket in this attribute? (1 being least to 5 being very
important)
3. How important is the speed aspect in the billing process? (1 being least to 5 being very
important)
4. How would you rate Natures Basket in this attribute? (1 being least to 5 being very
important)