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CUSTOMER PRECEPTION
TOWARDS
WHOLESALE MARKET IN WALMART
. I am also thankful to all the staff members of the WALMART who extended me their
full support for compiling the REPORT.
SIMRANJIT KAUR
Declaration
I hereby declare that this project report entitled “CUSTOMER PERCEPTION TOWARDS
WHOLESALE MARKET IN WALMART” submitted for the completion of my training
project after Semester-II of MBA at IKG-Punjab Technical University, Kapurthala, is
my original work and the project has not been formed the basis for the award of any other
degree. The entire subject matter of this report is my authentic work and I assure you it
is made solely for academic purposes only.
SIMRANJIT KAUR
MBA Semester-II
1818713
Signature:
DATE
Organization Profile
(About WALMART)
In India November 2006 the company announced a joint venture with bharti enterprises
.as foreign corporations were not allowed to enter the retail sector directly , Walmart
operated through franchises and handled the wholesale end of the business. The
partnership involved to joint ventures – Bharti Manage the front and, involving opening of
retail outlets while Walmart takes care of the backend, such as cold chains and logistics
.Walmart operates store in India under the name BEST PRICE modern wholesale. The
first store opened in Amritsar on 30 may 2009.
MISSION STATEMENT, VISION, GOALS, PURPOSE
Mission statement: to help people save money so they can live better
Vision: if we work together, we’ll lower the cost of living for everyone….we will give
the world and opportunity to see what it’s like to save and have a better life
Objectives
1. To describe behavior
2. To understand behavior
3. Influence behavior
4. To predict behavior
Product of Walmart
Initiatives taken in Walmart
Environment initiatives: in Nov 2005, Walmart announced several environment
measures to increase energy efficiency and improve its overall environmental records,
which had previously been lacking. The company’s primary goals included spending $500
million a year to increase fuel efficiency in Walmart struck fleet by 25% over 3 years and
double it within ten; reduce greenhouse gas emissions by 20 % in seven years, reduce
energy used at stores by 30 %.
Branding and store design changes: in 2006 as part of the initiatives, the
company launched a new store in Plano that included high end electronics jewelry and
expensive wines
On Sep 12, 2007, Walmart introduce new advertising with the
slogan “save money .live better’’
Acquisitions & employ benefits: on March 20, 2009 Walmart announced that it
was paying a combined US$ 93.66 million in bonus to every full and part time hourly
worker
Present
Walmart’s truck fleet locks millions of miles each year and the company plan to double
the fleet’s efficiency between 2005 & 2015. Distribution center that was converted to run
on biofuel from reclaimed cooking greace made during food preparation at Walmart
storages
1. Brand recognition – With millions of customers visiting Walmart every day, it is the most
recognized retail brand in the world. There are over 60 million items available at the
Walmart online store.
2. Global expansion – Walmart has recently purchased ASDA, the UK based retailer and
Indian e-commerce giant Flip kart. Besides, it has created a joint venture with India’s
biggest retail store Bharti. These global expansions have proven to be a great success
for the company.
3. Global presence – In 2017, Walmart opened 47 new stores in Central America, 15 in
Chile, 11 in the UK and 4 in China. Its international operations have increased its sales
and global presence.
4. ‘Every Day Low Prices’ strategy – Walmart is based on economies of scale agenda
that’s why it can offer low prices. It has fixed costs for thousands of products. Thus, it’s
one of the cheapest shopping places in the world.
5. Global supply chain and logistics system – The distribution and logistics systems are
the core competencies of Walmart. It uses Information Technology (IT) to efficiently
monitor the performances of every product in each store in each country.
6. Human Resource Management – Employees are the key assets of Walmart. It hugely
invests its time and money in developing and managing its employees. 1% of America’s
working population is employed at Walmart as per Business Insider.
7. Effective resource management – Walmart efficiently manages its resources including
information systems, supply chain networks, distribution facilities, knowledge, and other
skills. It has excellent operations in all the locations.
8. Strong market power over suppliers and competitors – Its large organizational size
and global reach have made Walmart capable enough to exercise market power over
suppliers and competitors.
UPGRADATION OF WALMART
Walmart has two major cards such as Walmart master card and Walmart credit card which
you can people read here. And find the information regarding your both cards because I
have covered everything on it. But beside this, Walmart also offering Walmart gift
card and there is a new option for the Walmart regular customer that has been introduced
in back 2005, that is Walmart MasterCard upgrade to Walmart discover card. People are
asking and I was getting few email to write something about this. Because this option can
be very beneficial for Walmart shoppers.
In this article, you people will learn complete step by step procedure regarding Walmart
master card upgrade. Here you can also read my previous article on Walmart master card
cash advance and cash limit.
Let’s move forward to learn about the Walmart master card upgrade procedure.
1. Walmart MasterCard up Gradation through Support Center
Well, this is the very first step that you need to take. In order to upgrade the Walmart
MasterCard to Walmart discover card. Here is the number of Walmart support service 1-
877-294-7880. Just dial this number and ask the Walmart representative to upgrade your
MasterCard to Walmart discover. If the representative will be able to upgrade the card
then he/she defiantly help you out there. After asking your MasterCard details.
If they will ask you to submit the application then you need to go for the second option to
upgrade the Walmart MasterCard.
This is the second option is that you need to fill the application to upgrade the Walmart
MasterCard to Walmart discover.
And to submit the application you have to visit the Walmart superstore.
After submitting the application you have to wait for the short time. And you will receive
the approval or disapproval notification if you submit the request online.
B2B: the term stands for business to business when the coffee stand owner buy a
coffee from a supplier, both of them are businesses
C2C: it stands for customer-to-customer. For example, when I want to sell my car
privately to another person.
3. Fairness
We all need to feel we are being treated fairly. Customers get very annoyed and
defensive when they feel they are subject to any class distinctions. No one wants to be
treated as if they fall into a certain category, left wondering if “the grass is greener on
the other side” and if they only received second best.
4. Control
Control represents the customers’ need to feel they have an impact on the way things
turn out. Our ability to meet this need for them comes from our own willingness to say
“yes” much more than we say “no.” Customers don’t care about policies and rules; they
want to deal with us in all our reasonableness.
6. Information
“Tell me, show me – everything!” Customers need to be educated and informed
about our products and services, and they don’t want us leaving anything out!
They don’t want to waste precious time doing homework on their own – they
look to us to be their walking, talking, information central.
Consumers want good quality, but they also want to know they are getting good value.
That value isn’t just judged by the product or service they are purchasing, but by the
availability and usability of the customer service that supports it.
It’s just not enough anymore to have brand recognition, consumers want to feel good
about a brand and company. They want to do business with civic-minded corporations
with positive world views.
Wholesaling
They inform the retailers about the new products, its uses and changes in their prices.
They also assist the retailers in advertising and selling of the products.
They provide financial assistance to retailers, sell goods on credit to retailers and thus
help them to operate with small working capital.
A wholesaler being the ware-house keeper of the market, they protect the retailers from
the risk of loss arising from holding large stocks of the product.
They may also sort out different grades of products according to quality and pack the
goods into small lots for the retailers. Literature Review Consumer perception theory is
any attempt to understand how a consumer’s perception of a product or service influences
their behavior. B2B (Business to Business): The exchange of services, information and/or
products from one business to other, as opposed to that is between a business and a
consumer. The study by James M. Barry & Russell Brat (2007) states that there is an
influence of trust building behaviors (social interaction, open communications, customer
orientation) and service outcomes (technical, functional and economic quality) on trust
formation. Trust is shown to have a positive influence on key relational outcomes, loyalty
commitment and share of purchases. To support the influence of trust on loyalty
commitment and expanded patronage in a B2B services setting. In another study, the
authors (“kusuml.ailawadi, jie zhang, Aradhana Krishna, and Michal’s. Kruger”) conduct
a systematic examination of incumbent retailers’ reactions to a Wal-Mart entry in their
local markets. The analyses include seven Wal-Mart supercenter entries and are carried
out using detailed store movement data for 46 product categories from a large number of
supermarkets, drugstores, and mass store. In one of the article the authors (deepika
jhamb, ravi kiran) said that the retail has been ascertain that share of organized retail is
increasing in India as consumers are accepting the new trends of retailing. As per
retailers’ point of view, infrastructure, economic growth and changing demographics are
the most important drivers of retail followed by increase in FDI’s and growth of real estate.
The authors katrijn gielens, Linda m.van de gucht, jan-benedict e.m.steenkamp, marnik
g.dekimpe) examined the effect of Wal-Mart’s entry into the United Kingdom on the
performance of European retailers. Drawing on the marketing, strategy, and finance
literature streams, they developed hypotheses as to why some retailers are expected to
be affected differently than others. They examine these incumbents’ reactions not just on
price but also on a variety of other marketing-mix variables. More important, they link
incumbent reactions to Wal-Mart’s impact on their sales. In addition, they explore the
factors that may explain differences in reactions and sales outcomes across retail
formats, stores, and categories. Retailing is one of the largest industry in India and one
of the biggest sources of employment in the country. The results of the study depict that
infrastructure, economic growth and changing demographics of consumers are the major
driver of organized retail in India. This was said by authors Deepika Jhamb, Ravi Kiran.
With the entrance of big giant retailer like Wal-Mart and Metro in the country what is the
effect of adjacent countries and business cycle in the country mainly focusing on Sales
tax revenue, Economic growth and to find the increase in employment and wages in retail
trade sector this was discussed by Michael J. Hicks, PhD and Kristy Wilburn. The job
growth results consistent across the country where the Wal-Mart enters. The Wal-Mart
employees were paid more when compared to other retail trade employees. The location
of Walmart has an additional effect which has increase in Local sales with the entry of
Wal-Mart there will be impact on employees, wages, and economy growth. It is also said
that with entrance of big Retailer in the country how the incumbent retailers’ reactions to
a big Retailer like Wal-Mart entry and the impact of these reactions on the retailers’ sales.
They compile a unique data set that consists of incumbent supermarkets, drugstores, and
mass merchandisers in the vicinity of seven Wal-Mart entries, as well as control stores
not exposed to the entries this was discussed by KUSUM L. AILAWADI, ARADHNA
KRISHNA. It was said that incumbent stores’ reactions to a Wal-Mart entry into their local
markets and the consequences of these reactions for the stores’ sales outcomes how
incumbents change their pricing, promotion, and product assortment in reaction to the
entry and how their sales are affected by the entry how these reactions and sales
outcomes vary across retail formats, stores, and product categories and to see whether
the incumbents’ reactions influence their sales outcomes. When the big Retailer enters
the market there is certain impact on the local Retailers and on their Sales this was
discussed by KATRIJN GIELENS and STEENKAMP. This validate the findings using
three alternative measures of company performance Percentage growth in the incumbent
retailer’s sales, Earnings before interest and taxes and Return on assets.
Geographical factors:
The geographical factors are location, shelf management, display, and ambience.
1. Location: location is the place which is convenient to all the consumers for buying
the product.
2. Shelf management: Achieve an organized, polished look to your retail shelves and
capture your customer’s attention every time with our wide array of shelf
management products and display accessories.
3. Display: Knowledge is power and for retailers, product knowledge can mean more
sales. It is difficult to effectively sell to a consumer if we cannot show how a
particular product will address a shopper's needs. Read on to learn some of the
benefits of knowing the products you sell.
4. Ambience: arrangements of products in big malls will also affect the consumer
perception that in general we call as ambience.
Perceptual drivers:
The following are the major drivers of perception. They are learning, believes, previous
experience, word of mouth.
1. Learning: Learning is the lifelong process of transforming information and
experience into knowledge, skills, behaviors, and attitudes.
2. Believes: Belief is distinct from judgment, which is a conscious mental act that
involves arriving at a conclusion about a proposition (and thus usually creating a
belief). Whereas belief is the mental attitude that some proposition is true rather
than false, judgment is the evaluation of a proposition as reasonable, fair,
misleading, etc.
3. Previous experience: Based on the previous experience of the product or service
his/her expectations or the thoughts will differ.
4. Word of mouth: depending on the type of word of mouth communication
perceptual levels of individuals varies. If individual receives positive word of
mouth of a product or service then he/she make an attempt to choose and vice
versa.
Outcomes:
Consumer perception will result in two types based on his positive and negative. The two
outcomes are repeat purchase and switch off.
1. Repeat purchase:
Perception is the main thing that effect on purchase. If consumer feels positive then
purchase will be repetitive. Consumer will continuously make the purchases.
2. Switch off:
For a poor perception, consumer of a business shifts to another business. This will
happen in any kind of businesses and the main reason is poor communication so avoid
this kind of miss understandings.
Scope of Study
The Inferences from the study are based on the responses given by the consumers in a
specific area. This study will be helpful in getting an insight into the perception of
Consumers on Advertisements.
Research Methodology
Research approach
Customer Survey and questionnaires method
Survey method is used for collecting data from consumers of various goods at B2B
outlets. We requested all respondents to fill in the questionnaire, by self after explaining
the various aspects mentioned in it. It contained both open and closed ended questions
in a structured format very easy to understand on the first look.
Sampling Technique
A convenient sample (non – probability sampling method) of 110 consumers was shared
up for the current study in which respondent of the study was request to complete the
questionnaire on voluntary basis.
Sample Size
The Size of the sample taken in this study is 110.
Period of Study
The study was done during October 2013 to November 2013 timeline.
Data Usage:
For analysis and interpretation, only primary data is used. However for conclusion
and recommendations both primary and the secondary data along with the verbal
knowledge and information although obtained from respondents, though they are outside
the parameters of questionnaire were also included. The data collected from these
sources were analyzed using various tools like percentage analysis, chi-square test,
cross table analysis method.
Research Instrument:
The data is collected by well developed, structured five point Liker Scale. All of the
questionnaires were distributed among the respondents in the defined areas. The data
is collected in a period of 25 days and the responses were analyzed using the Statistical
Package for Social Science (SPSS) version 16.0 for analysis and evaluation.
Tools:
Frequencies and cross tabulation have been calculated for the responses of the
respondents. Chi – Square test analysis was conducted on the data obtained using the
questionnaire.
Analysis and Interpretation
Table
Interpretation:
From the above table, we infer that 72% of the total respondents are male and
28% are female. On further classification according to age group, we find that of all the
respondents 26% are less than years old, 44% are of the age group 26-40, 19% of the
age group 41-60,11% are above 60 years. From the responses collected
DISTANCE(20%),PRICING(23%),PRODUCT QUALITY(26%),WORD OF
MOUTH(29%) are the major factors influencing the selection of B2B store. Most of the
respondents told that the purpose of visiting the B2B store is BUYING (67%) and also
ENQUIRY (25%).
Chi-Square Test
AVGMO
NTHLYPURCHASE
1 2 3 Total
INCOME 1 19 17 6 42
2 16 8 8 32
3 5 6 5 16
4 7 5 8 20
Total 47 36 27 110
CHI-SQUARE:
INCOME
Observed Expected
N N Residual
1 42 27.5 14.5
2 32 27.5 4.5
3 16 27.5 -11.5
4 20 27.5 -7.5
Total 110
Test Statistics
INCOME AVG MONTHLY PURCHASE
Chi-Square 15.236a 5.473b
df 3 2
Asymp. Sig. 0.002 0.065
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 27.5.
b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 36.7.
From the above SPSS calculation we infer that there is a significant relation between
INCOME and
CHI-SQUARE:
RECEPTION OF STORE
PERSONNEL
Observed Expected
N N Residual
1 46 36.7 9.3
2 35 36.7 -1.7
3 29 36.7 -7.7
Total 110
Test Statistics
EDUCATION RECEPTION OF STORE
PERSONNEL
Chi-Square 20.691a 4.055b
df 3 2
Asymp. Sig. 0 0.132
EDUCATION
Observed Expected
N N Residual
1 47 27.5 19.5
2 27 27.5 -0.5
3 16 27.5 -11.5
4 20 27.5 -7.5
Total 110
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 27.5.
b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 36.7.
From the above SPSS calculation we infer that there is a significant relation between
EDUCATION OF THE
CHI-SQUARE:
MEMBERSHIP CARDS
Observed Expected
N N Residual
1 55 36.7 18.3
2 31 36.7 -5.7
3 24 36.7 -12.7
Total 110
PROMOTIONAL OFFERS
Observe Expecte Residua
dN dN l
1 44 36.7 7.3
2 35 36.7 -1.7
3 31 36.7 -5.7
Total 110
Test Statistics
MEMBERSHIP CARDS PROMOTIONAL OFFERS
Chi-Square 14.418 a 2.418a
df 2 2
Asymp. Sig. 0.001 0.298
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 36.7.
From the above SPSS calculation we infer that there is a significant relation between
LOYAL MEMBERSHIP CARD HOLDERS and SATISFACTION TOWARDS
PROMOTIONAL OFFERS.
MONTHLY PURCHASE
Observed Expected
Residual
N N
1 47 36.7 10.3 CHI-SQUARE:
2 36 36.7 -0.7 PAYMENT
3 27 36.7 -9.7 OPTIONS
Total 110 Observed Expected
Residual
N N
1 46 36.7 9.3
2 35 36.7 -1.7
3 29 36.7 -7.7
Total 110
Test Statistics
MONTHLY PAYMENT OPTIONS
PURCHASE
Chi-Square 5.473a 4.055a
df 2 2
Asymp. Sig. 0.065 0.132
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 36.7.
From the above SPSS calculation we infer that there is a significant relation between
AVERAGE MONTHLY PURCHASE AMOUNT and VARIETY IN PAYMENT OPTIONS
PROVIDED.
Findings
Many small stationary shop owners are attracted to B2B wholesalers because of
the price and availability of various products and are satisfied with the promotional offers
at the stores. Out of 110 respondents maximum people are agree about the quality of
products that the B2B stores are providing. Most of respondents are satisfied with the
pricing and agreed with Display of products and brands in the mall. Respondents can’t
say about the Warranty of products and brands given by the stores. Customers are
showing their interest due to the WORD OF MOUTH about the retail store. Customers
have overall satisfaction about the perception towards the wholesale malls.
Suggestions:
•Credit cards must be accepted.
•They are providing the highly discounts melas, but they didn’t providing the exchange
facility.
•They have to concentrate more on branded items.
•There is no free delivery facility at Best Price; if Best Price shop provides it the retailers
will feel comfort because the Best Price shop is far away from the city.
Conclusion
Retailing is one of the largest industry in India and one of the biggest sources of
employment in the country. India has witnessed a fast pace of retail development over
the past five years. Not only global players like Wal-Mart and Metro are trying to succeed
in our country in the retail sector but also players like Reliance, Aditya Birla group are
also trying their hands in the retail sector. The Organized Retailing is becoming more
important in present days and will certainly improve in the future. With the emerging of
big giant retailers like “Best Price” (i.e. Wal-Mart) there is certain possible that the people
in and around the store will be benefited and will have advantages like Employment
opportunities, Retailers satisfied with less cost and products available in bulk quantity,
Country GDP will also increase.
With the entry of big players like Wal-Mart B2B business has shown positive
trends in the recent times. Wal-Mart entered in the name of Best Price and as also metro
into different cities across India. In this article the main objectives are perception, buyer-
seller relationship and repurchased intentions of the wholesale malls. There is good
perception to retailers about the Best Price and Metro. Maximum retailers in the country
know very well about Best Price shop and Metro. The retailers are purchasing products
from the Best Price and Metro for their shop. The retailers are mainly purchasing
products from Best Price and Metro because of three factors, those are
•Quality
• Price
•Bulk of purchase
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value creation, and their empirical assessment”, Journal of Academy of Marketing
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