EFFECT OF CUSTOMER SATISFACTION ON

PURCHASE BEHAVIOUR IN OFFLINE

RETAIL STORE

A REPORT

PRESENTED TO

PROF. PURVA KANSAL

ON
October 18, 2019

IN
PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE
MASTER OF BUSINESS ADMINISTRATION
UNIVERSITY BUSINESS SCHOOL,
PANJAB UNIVERSITY,
CHANDIGARH

BY
VIPUL MUTNEJA
VIKAS KHATKAR
(MBA-B)

1
 Table of Contents

Contents
INTRODUCTION ............................................................................................................................................................ 3
REVIEW OF LITERATURE ............................................................................................................................................... 4
NEED AND SCOPE OF THE STUDY ................................................................................................................................. 7
OBJECTIVES OF THE RESEARCH .................................................................................................................................... 7
RESEARCH QUESTIONS ................................................................................................................................................. 7
CONCEPTUAL MODEL ................................................................................................................................................... 8
HYPOTHESIS .................................................................................................................................................................. 9
SAMPLING PROCEDURE.............................................................................................................................................. 11
RESEARCH INSTRUMENT ............................................................................................................................................ 12
DATA ANALYSIS........................................................................................................................................................... 14
CONCLUSION & RECOMMENDATION......................................................................................................................... 21
LIMITATIONS............................................................................................................................................................... 21
LEARNINGS ................................................................................................................................................................. 21
REFERENCES ............................................................................................................................................................... 22
APPENDIX ................................................................................................................................................................... 23

2
INTRODUCTION

We are living in an era where everyone is running in a rat race to reach a certain destination. But
when people reach that destination, even then, they are not satisfied and set another destination and
go on running the race. Today, everyone wants to be ahead of everyone, customer is the emperor of
the market there everyone is the race to acquire new customers and retain their existing customers.

Customer Purchase Behavior: We have seen that in many products, decision-making is a very
lengthy process, and takes a very long time. The problem is recognized and a lot of information is
gathered. After this is done, the last two stages of decision-making, that is, the purchase and post
purchase come into play. Purchase is very important as it generates revenue, and dislikes of the
consumer. Post purchase behavior also establishes a link between the marketer and the target market
segment. Purchase is important to the marketer as the product was planned, produced, priced,
promoted and distributed after a lot of effort. If purchase does not take place, the marketer has failed
in his marketing effort.

Customer Satisfaction: Only if interactions between a seller and a customer, or among the
members of a community including seller and customers result in satisfaction will they stay
connected and continue to interact with one another and progress towards engagement. Satisfaction
is not an end in itself as the use of customer satisfaction surveys and ratings sometimes implies but
an intermediate step in strategies to achieve the goals of an organization (Mittal and Kamakura,
2001). Indeed, it has been argued the goal of marketing is not satisfaction but customer
empowerment through partnerships with sellers that enable customer communities to mutually
construct their desires and products (Firat and Dholakia, 2006).

It is evident that both the concepts have significant relationship as intuitive and if customer
satisfaction is the concept any company is working on has a common objective of increasing
customer satisfaction and improving the buying behavior so as to retain the old loyal customers and
attract new potential customers.

3
 REVIEW OF LITERATURE

The extensive literature review has been conducted to gain deeper understanding of research about online
and offline customer and their experience and how the customer satisfaction affects the purchase behavior
of the individuals. The review states and classifies the dominant dimension consumer considered when
they make any offline purchase decision. More specifically, the study examined the interrelationships
among social interaction, product attributes, financial, advertisement and other assistance when
consumers choose to shop offline.

Robert Paul (2013)

This study has explored the relationship between customer satisfaction and their purchase decisions. Not
only has it examined their differences and similarities, it has also described the retail experience from a
shopper’s perspective, and proposed effective methods to support in-store purchasing. Shoppers each
arrive at the point of purchase having navigated an unprecedented number of choices and value options in
a challenging and highly competitive retail environment. The shopper is driven by an acknowledged
purchase need, and is seeking the best possible shopping experience to satisfy that need. Those retailers
and marketers that maximize the shopper’s sense of perceived value will improve not only their short-
term sales but also their long-term relationship with the shopper. It is the job of the retailer and the
marketer to work with the shopper to understand what she values for each particular shopping experience.
Through that understanding, shopper solutions can be offered in-store to co-create value, drive purchase
decisions, and develop enduring preferences for the product, brand, retailer and store location.

Li and Zhang (2002)

This study examined the representative existing literature on consumer offline shopping attitudes and
behavior based on an analytical literature review. In doing so, this study attempts to provide a
comprehensive picture of the status of this subfield and point out limitations and areas for future research.
They decided to restrict their search of research articles to the period of January 1998 to February 2002.
They also checked the reference sections of the selected articles to identify and include additional
prominent articles in this area. Three out of the five dependent variables (consumer attitudes, intentions,
and purchasing behavior) and three out of the five independent variables (personal characteristics,
vendor/service/product characteristics, quality) receive the most attention. This seems to constitute the
main stream of research in this area. It is found that personal characteristics, vender/service/product
characteristics, and quality significantly affect shopping attitudes, intention, and behavior. The direct
implication of these findings is that targeting more appropriate consumer groups, improving product

4
and/or service quality, and improving quality can positively influence consumer attitudes and behavior,
possibly leading to increased frequency of early purchase and replication purchases on the part of
customers.

Chaing and Dholakia (2014)

They carried out a study in which they examined the purpose the customer to purchase goods from retail
stores and online during their shopping. Mainly there are three variable in their study those affects the
consumer to purchase online or to go offline. Those are the accessibility features of the shopping sites, the
type of the products and their characteristic, and the actual price of the product. The study revealed that
the accessibility and the convenience of the shopping sites create the intention in the customer to purchase
or not. When there are difficulty faced by a consumer to purchase online then the customer switch to the
offline shopping for the purchase behavior and the consumer face difficulty in offline purchasing then
they go to the online purchasing. After relating both the medium of shopping the consumer said that the
online shopping is more convenient for them and gives more satisfaction which inspires the consumer to
purchase online in the internet.

Danaher et.al (2003)

This study focused on the loyalty of the 100 brands over the online and offline shopping of 19 product of
the grocery. They compared the grocery items of both the shopping with starting model which is a new
segmented of Dirichlet model, this model has very dominant features which gives the exact classes for the
brand choice and also gives the real model for the purchasing behavior. The outcome of the study
revealed that the reality of the high brands by the high market shares bought the shopping much greater
than the expected. But in case of the small share brand it is just reversed. However in the traditional
shopping the expectations and the observations is not at all links to the brand share.

Phuc and Ian (2011)

This paper was developed to investigate the satisfaction levels of customers in supermarkets. Data was
collected from three supermarkets in Visby, Gotland. The study examined the importance of overall
dimensions and specific elements of customer satisfaction towards the measurement of satisfaction levels.
In addition, comparative analysis was conducted between the three relative grocery stores. Customer
satisfaction levels were measured. The highest percentage of customers of the whole sample belonged to
medium level of satisfaction. The statistical result concluded that customers of ICA Nära and customers
of ICA were higher satisfied than those of Coop Forum. The results showed that customers felt satisfied
with Location, Staff courtesy and Reliability of supermarkets as the top aspects that drive satisfaction
while additional services were ranked lowest. Due to these results, the impact of these attributes on
5
Customer satisfaction must not be underestimated.

Dinesh, Norida, Ali (2018)

The main purpose of this research study includes the conceptual framework based on the prior literature
review about the factors influencing customer satisfaction and customer retention towards retail stores in
Malaysia. This research will investigate the factors that been highlighted from the previous study as an
important element in determining customer satisfaction and customer retention. This research will help
the future researcher to discover more information in the field. Besides, an important indication of this
research is that the outcome that same factors can influence customer satisfaction differently when those
factors are combined with the other group of factors. The same is true for efficiency. This is important
reason that could explain why same factors can yield different kinds of outcome in different research
studies. Customer satisfaction is the main aim for any industries in Malaysia to operate and increase their
sales revenue. Service quality influence customer satisfaction and the customers define quality. The
customer satisfaction studies have to take place on persistent basis, and the results has to be put into
practice in the company’s strategies and performance. There are some important limitations that will be
identifying during this research study.

Chaing and Roy (2003)

This study focused on the consumer choice to shop on the internet and at the physical stores during the
information acquisition period. A convenience sample of 34 students enrolled in undergraduate marketing
class to select the product for testing, 56 products were developed based on the popularity of online
shopping. The result shows that the consumer perceives shopping offline as inconvenient, online shopping
intention was expected to be greater for search products than experience product.

Ittner and Larcker (1998)

The study provides empirical evidence at the customer, business-unit and firm- level that various
measures of financial performance (including revenue, revenue change, margins, return on sales, market
value of equity and current earnings) are positively associated with customer satisfaction. However, in the
retail industry they find a negative relationship between satisfaction and profitability which may be
because benefits from increased satisfaction can be exceeded by the incremental cost in retail.

Babakus et al. (2004)

This study links customer satisfaction to product and service quality within retail stores and find that
product quality has a six significant impact on store-level profits. Research on customer satisfaction
usually views employees as facilitators of the sales process who are critical to improving the conversion
6
ratio, by providing information to the customers on prices, brands, and product features and by helping
customers to navigate store aisles, finding the product and even cross-selling other products. The unique
feature of the retail store execution problem is that it combines the factory and the sales components, but
this stream of literature focuses only on the latter.

NEED AND SCOPE OF THE STUDY

The purpose of this research is to study the relationship between customer satisfaction and customer
purchase behavior so as to enhance the customer buying experience, customer satisfaction is a variable
use to determine how customers are responding to your products, services and marketing efforts. High
customer involvement towards product and services leads to high customer satisfaction and increase in
consumption of product and services.
Through this study we want to check the effect of the customer satisfaction on customer purchase
behavior and suggest marketing strategies aligning with the study which companies can use to market
their product and services especially in the market where the customer retention is low.

OBJECTIVES OF THE RESEARCH

More specifically, the objectives were stated to:

1. To study the impact of Social Interaction on Customer Purchase Behavior.

2. To study the impact of Product Attributes on Customer Purchase Behavior.

3. To study the impact of Financial factors on Customer Purchase Behavior.

4. To study the impact of Cooperative Advertising on Customer Purchase Behavior.

5. To study the impact of Other Assistance on Customer Purchase Behavior.

RESEARCH QUESTIONS

Does customer satisfaction has effect on customer purchase behavior?

7
CONCEPTUAL MODEL

To implement the study, following dependent and independent variables are shown in the theoretical
framework. Customer Satisfaction is the independent variable and Customer Purchase Behavior is
the dependent variable. Social interaction, Product Attributes, Financial, Cooperative Advertising &
Other Assistance are the variables of the customer satisfaction i.e. to see the impact of customer
satisfaction on the customer purchase behavior. The theoretical framework can also be seen from the
following diagram:

SOCIAL
INTERACTION

PRODUCT
ATTRIBUTES

CUSTOMER
FINANCIAL
CUSTOMER PURCHASING
SATISFACTION
BEHAVIOR

COOPERATIVE
ADVERTISING

OTHER
ASSISTANCE

CONCEPTUAL MODEL
8
 HYPOTHESIS

Hypothesis development is very important because acceptance and the rejection of hypothesis show
the significance of the study. The hypotheses of this study are taken as follows:

Hₒ: There is no relationship between customer satisfaction and customer purchase behavior.

H₁: There is significant relationship between social interaction and customer purchase behavior.

H₂: There is significant relationship between product attributes and customer purchase behavior.

H₃: There is significant relationship between financial and customer purchase behavior.

H₄: There is significant relationship between cooperative advertising and customer purchase behavior.

H₅: There is significant relationship between other assistance and customer purchase behavior.

Table 1:

Objectives of the study Hypothesis Variables

To study the impact of Social There is significant Independent Variable –

Interaction on Customer relationship between social Social Interaction

Purchase Behavior. interaction and customer Dependent Variable -

purchase behavior. Customer Purchase
Behavior

To study the impact of There is significant Independent Variable –

Product Attributes on relationship between product Product Attributes

Customer Purchase Behavior. attributes and customer Dependent Variable –

purchase behavior. Customer Purchase Behavior

To study the impact of There is significant Independent Variable –

Financial on Customer relationship between financial Financial

Purchase Behavior. and customer purchase Dependent Variable –

behavior. Customer Purchase Behavior

9
 To study the impact of There is significant Independent Variable –
Cooperative Advertising on relationship between Cooperative Advertising

Customer Purchase Behavior. cooperative advertising and Dependent Variable –

customer purchase behavior. Customer Purchase Behavior

To study the impact of Other There is significant Independent Variable –

Assistance on Customer relationship between other Other Assistance

Purchase Behavior. assistance and customer Dependent Variable –

purchase behavior. Customer Purchase Behavior

RESEARCH DESIGN

Research design is a logical and systematical plan prepared for directing a research study. This study
uses Descriptive Research Design and quantitative approach. Survey research method
(Questionnaire) will be used for research design. The quantitative research is that which attempts to
find answer to a question through analysis of quantitative data, i.e., the data presented in facts and
figures. It gives the opportunity to interact and gather data directly from the research participants to
comprehend a phenomenon from their viewpoints.

TARGET POPULATION

The target population comprises of offline and online consumers in Chandigarh area.

10
 SAMPLING PROCEDURE

Unit of Population : Consumers

Sampling Unit : Consumers in Chandigarh (sector 15)

Sample Size : 85

Extent : In and around Chandigarh

Sampling Technique : Simple Random Sampling

Sampling Data Collection Method : Questionnaire

Table 2:

Variables Standardized Scale Details

Scale – SATIND & SATDIR

Independent Variable –
Author – Ruekert and Churchill
Customer Satisfaction
Year of publication – 1984

No. of items – SATIND

21(Original)
SATDIR
16 (Original)

Scale – Purchase Decision Involvement

Dependent Variable –
Author – Mittal
Customer Purchase Behavior.
Year of publication – 1989

No. of items – PDI

4(Original)

11
 RESEARCH INSTRUMENT

Primary data is collected through the use of well-structured questionnaire that contain relevant
questions regarding customer satisfaction and customer purchase behavior. The questionnaire used
to allow the response of the respondents in a standard direct way, unbiased approach and objective
oriented. The use of questionnaire provides the information to be presented in a numeric way.
Despite of questionnaire method benefits; questionnaire method has several limitations, for example
lackadaisical attitude of respondents, non- attendance and lack of cooperation. This instrument of
research is referred for external judgment to ensure validity.
Table 3:

Variables Measurement scaling proposed

IDV – Customer Satisfaction 5-Point Likert Scale

DV – Customer Purchase Behavior 5-Point Likert Scale

SCALE

 The SATIND (Social interaction, Product Attributes, Financial, Cooperative Advertising and
Other Assistance) contains 21 items and the SATDIR (Social interaction, Product Attributes,
Financial, Cooperative Advertising and Other Assistance) contains16 items. Each item is rated
on a 5-point Likert format is used for item in both scale, with possible ranging from strongly
agree to strongly disagree for SATIND items and from very dissatisfied to very satisfied for
SATDIR items. Item score can be summed within the five SATDIR and SATIND
components to form dimension indices, or overall to form overall SATDIR and SATIND
scores.

 The PDI scale is a four item measure on 7-point bipolar phrases. The item scores are summed
and then divided by four, to form an average score of PDI

12
Table 4:
Hypothesis
To study the impact of Social
Interaction on Customer
Purchase Behavior.
To study the impact of Product
Attributes on Customer
Purchase Behavior.
There is significant
relationship between financial
and customer purchase
behavior.
There is significant
relationship between
cooperative advertising and
Customer purchase behavior.
There is significant
relationship between other
assistance and customer
purchase behavior.
Which section of Technique used
questionnaire
5 questions are used to test
this hypothesis which are
Discriminant Analysis
placed in random order in
the questionnaire
6 questions are used to test this
hypothesis which are placed in
Discriminant Analysis
random order in the
questionnaire
3 questions are used to test this
hypothesis which are placed in
random order in the
Discriminant Analysis
questionnaire
2 questions are used to test this
hypothesis which are placed in
random order in the Discriminant Analysis
questionnaire
2 questions are used to test this
hypothesis which are placed in
random order in the Discriminant Analysis
questionnaire
13
 DATA ANALYSIS

The data is collected from 85 people in Chandigarh and their responses on the customer satisfaction
and buying behavior is recorded. We have used Discriminant Analysis to find out the variable
effecting the purchase behavior. This analysis will help find out the variables responsible for
effecting the purchase behavior of the customers. Discriminant Analysis finds a set of prediction
equations based on independent variables that are used to classify individuals into groups.

There are two possible objectives in a discriminant analysis:

 Finding a predictive equation for classifying new individuals.

 Interpreting the predictive equation to better understand the relationships that may exist
among the variables.

The mathematics of discriminant analysis are related very closely to the one-way MANOVA. The
classification (factor) variable in the MANOVA becomes the dependent variable in discriminant
analysis. The dependent variables in the MANOVA become the independent variables in the
discriminant analysis.

The Regression Analysis and Discriminant Analysis are much of parallels it’s just that in regression
the independent variable are categorical in nature and dependent variables are continuous on the
other hand in discriminant analysis the independent variable are continuous in and dependent
variable are categorical.

Test of Reliability

It refers to the degree to which a test is consistent and stable in measuring what it is intended to
measure. The reliability calculating the Cronbach’s Alpha, which is the best measure to evaluate
consistency of data, does Testing. The value of Cronbach’s alpha for independent as well as
dependent variables should be greater than 0.70 to ensure reliability of the data. The result indicates
a high value of Cronbach’s Alpha i.e. 0.733 which signifies that data is reliable.

14
 Reliability Statistics
Cronbach's
Alpha N of Items
.733 5

Table 1.1 Reliability Statistics

Discriminant Analysis Linear Equation

DA involves the determination of a linear equation like regression that will predict which group the case
belongs to. The form of the equation or function is:
D = v1 X1 + v2 X2 + v3 X3 + … + vi Xi + a
Where D = discriminate function
v = the discriminant coefficient or weight for that variable
X = respondent’s score for that variable
a = a constant
i = the number of predictor variables
There are several purposes of DA:
1. To investigate differences between groups on the basis of the attributes of the cases, indicating
which attributes contribute the most to group separation.
2. The descriptive technique successively identifies the linear combination of attributes known as
canonical discriminant functions (equations) which contribute maximally to group separation.
3. The DA function uses a person’s scores on the predictor variables to predict the category to which
the individual belongs.
4. To determine the most parsimonious way to distinguish between groups.
5. To classify cases into groups. Statistical significance tests using Chi-square enable you to see how
well the function separates the groups.
6. To test theory whether cases are classified as predicted.

The aim of the statistical analysis in DA is to combine (weight) the variable scores in some way so that a
single new composite variable, the discriminant score, is produced. At the end of the DA process, it is
hoped that each group will have a normal distribution of discriminant scores. The degree of overlap
between the discriminant score distributions can then be used as a measure of the success of the
technique. Standardizing the variables ensures that scale differences between the variables are eliminated.
When all variables are standardized, absolute weights can be used to rank variables in terms of their
discriminating power, the largest weight being associated with the most powerful discriminating variable.
Variables with large weights are those which contribute mostly to differentiating the groups.

15
1. Discriminant Analysis Classification

The initial case processing summary indicates sample size and no missing data.

Analysis Case Processing Summary

Unweighted Cases N Percent
Valid 83 100
Excluded Missing or out-of-range 0 .0
group codes
At least one missing 0 .0
discriminating variable
Both missing or out-of-range 0 .0
group codes and at least
one missing discriminating
variable
Total 0 .0
Total 83 100.0

Table 1.2: Analysis Case Processing Summary

2. Interpretation of Tables

In discriminant analysis we are trying to predict a group membership, so firstly we examine whether there
are any significant differences between groups on each of the independent variables using group means
and ANOVA results data. The Group Statistics and Tests of Equality of Group Means tables provide this
information. If there are no significant group differences it is not worthwhile proceeding any further with
the analysis.

i. Group Statistics Table provides the mean difference between the different scores which suggest
that these may be good discriminators as the separations are large.

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 Group Statistics
Valid N (listwise)
Group Level(1,2) Mean Std. Deviation Unweighted Weighted
1 Mean_SI 3.0087 .48195 69 69.000
Mean_PA 3.1546 .53422 69 69.000
Mean_F 2.7778 .71095 69 69.000
Mean_Ad 2.8913 .71161 69 69.000
Mean_Oth 3.1594 .82468 69 69.000
2 Mean_SI 2.8714 .53555 14 14.000
Mean_PA 3.1786 .50833 14 14.000
Mean_F 2.6667 1.10940 14 14.000
Mean_Ad 2.7143 .95503 14 14.000
Mean_Oth 2.7500 .99518 14 14.000
Total Mean_SI 2.9855 .49068 83 83.000
Mean_PA 3.1586 .52698 83 83.000
Mean_F 2.7590 .78487 83 83.000
Mean_Ad 2.8614 .75431 83 83.000
Mean_Oth 3.0904 .86301 83 83.000

Table 1.3: Group Statistics

ii. The Pooled Within-Group Matrices Table also supports the statistical difference as
intercorrelations are low.

Pooled Within-Groups Matrices

Mean_SI Mean_PA Mean_F Mean_Ad Mean_Oth
Correlation Mean_SI 1.000 .294 .366 .354 .370
Mean_PA .294 1.000 .252 .358 .341
Mean_F .366 .252 1.000 .376 .332
Mean_Ad .354 .358 .376 1.000 .572
Mean_Oth .370 .341 .332 .572 1.000

Table1.4: Pooled-Within Group Matrices

17
3. Summary of Canonical Discriminant Functions

An Eigenvalue indicates the proportion of variance explained. For a good model, the eigen value must be
more than one. In discriminant analysis there is one eigenvalue for each discriminant function. A large
eigenvalue is associated with a strong function. Thus, the present Eigen Value of 1.044 suggests a Good
function.

Eigenvalues
Canonical
Function Eigenvalue % of Variance Cumulative % Correlation
1 1.044a 100.0 100.0 .769
a. First 1 canonical discriminant functions were used in the analysis.

Table 1.5: Eigen Value and Canonical Correlation Function

The Canonical Correlation is a correlation between the discriminant scores and the levels of the
dependent variable. A high correlation indicates a function that discriminates well.
The present correlation of 0.769 is high (1.00 is perfect), suggesting high discrimination.

4. Wilks’ Lambda

It tests how well each level of independent variable contributes to the model. The scale ranges from 0
to 1, where 0 means total discrimination and 1 means no discrimination. This table indicates a highly
significant function (p < .000) and provides the proportion of total variability not explained, i.e. we
have 38.6% of total variability unexplained suggesting high discrimination.

Wilks' Lambda
Test of Function(s) Wilks' Lambda Chi-square Df Sig.
1 .386 3.359 5 .000

Table 1.6 Wilks’ lambda

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 5. Standardized Canonical Discriminant Function Coefficients

These allow you to compare variables measured on different scales. Coefficients with large absolute
values correspond to variables with greater discriminating ability providing an index of the
importance of each predictor/variable. The sign indicates the direction of the relationship.

Standardized Canonical Canonical Discriminant

Discriminant Function Function Coefficients
Coefficients Function
Function 1
1 Mean_SI .667
Mean_SI .328 Mean_PA -.894
Mean_PA -.474 Mean_F -.053
Mean_F -.042 Mean_Ad -.068
Mean_Ad -.051 Mean_Oth 1.115
Mean_Oth .953 (Constant) -2.273

Table 1.7 & 1.8 Standardized Canonical DiscriminantFunction Coefficients&

Canonical Discriminant Function Coefficients.

Equation formed for calculating the Discriminant Score is given below (Using above table 1.6 & 1.7):

Discriminant Score = -2.273 + 0.338 x (Social Interaction) - 0.474 x (Product attributes) – 0.042 x
(Financial) – 0.051 x (Advertisement) + 0.953 (Other Assistance)

19
6. Classification

It is a simple summary of number and per cent of subjects classified correctly and incorrectly. The
‘leave-one out classification’ is a cross-validation method, of which the results are also presented. A
table in which the rows are the observed categories of the dependent and the columns are the
predicted categories. When prediction is perfect all cases will lie on the diagonal. The percentage of
cases on the diagonal is the percentage of correct classifications. The cross validated set of data is a
more honest presentation of the power of the discriminant function than that provided by the original
classifications and often produces a poorer outcome. The classification results reveal that 68.1% of
respondents were classified correctly.

Classification Resultsa
Predicted Group Membership
Group Level(1,2) 1 2 Total
Original Count 1 42 27 69
2 8 6 14
% 1 60.9 39.1 100.0
2 68.1 31.9 100.0
a. 68.1% of original grouped cases correctly classified.

Table 1.9 Classification Results

20
 CONCLUSION & RECOMMENDATION

The above study about the effect of customer satisfaction on purchase behavior on the basis of
multivariate statistical tool discriminant analysis states that the no matter there is high or low satisfaction
level people who buy their cloths from local market will not be affected as more than 60% of people
prefer purchasing their cloths from local cloth market i.e. Sector 15 market (in this case). In the
discriminant score equation only variables with positive coefficient value were social interaction and other
assistance on the other hand variables like finances, product attributes & advertisement had negative
coefficient value, which means out of five variables of customer satisfaction only two of them contributes
in purchase decision concept.

LIMITATIONS
1. Implementation of data collection method. Data collection method also alters the responses of the
sample population and time constraint and environment can also affect the data collection.

2. Sample size. Sample size depends on the nature of the research problem. Data collection was done
from a sample of 85 people. The greater the number of responses better is the analysis and the results.

3. Access – Research study depends on having access to people, organizations, data, from a limited area
i.e. sector 15 and 14 in this case and hence cannot be generalized for the whole population.

4. Privacy – People are not very comfortable in providing information to the stranger collecting the data
to conduct the research study.

LEARNINGS

The research study conducted to determine the relationship between the customer satisfaction and the
purchase behavior of the individuals helps us to implement the theoretical concepts in the real life world
and thus provide a practical experience on how the attributes and the environmental factors affects and
shapes up the consumer behavior. With the help of research tool i.e. SPSS in this research study helped us
to carry out the study and arrive at the conclusions and analyze the results and thus improve the consumer
experience by providing suggestions so as to improve the outcomes which can lead to greater satisfaction
and thus can increase the profits for a company or industry in the future. In future this research study
conducted will provide an edge in the corporate industry and will help in improving overall efficiency to
understand and tackle similar problems.

21
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 APPENDIX

Effect of customer satisfaction on purchase behavior in offline Cloth Stores in

Sector 15 Chandigarh.

Dear Respondents,

We are final year students of MBA (Marketing) from UBS, PU. As a part of our course we are
pursuing a research project for which we request your cooperation. We assure you that your responses
would be kept confidential and will be used only for academic purposes.
Thank you for your participation and cooperation.

Select the below appropriate option rating the statement from Strongly Agree to Strongly Disagree.
Email ID: ______________________________________________

Statements on Customer Satisfaction

(In Context to sector 15 market only)

Statements Strongly Agree Neutral Disagree Strongly
Agree Disagree
Store's sales representative is not well
organized.
Store's sales representative doesn't know its
product very well.
Store's sales representatives are helpful.
Store's sales representative have my best
interests in mind when they make the
suggestions.
Store's sales representative is always willing
to help me if I get into a tight spot.
Products requested are available
Available products pose as a good growth
opportunity for stores.

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Their products are not well known.
I am willing to pay more for the product in
stores.
I would have a difficult time replacing store
product with a similar product.
Store's products perform better than others.
The stores provide very competitive prices
on their products.
Stores provide products on discounts in
festival seasons
I am happy with the price I pay for the
products.
Stores must have better advertising
programs.
Stores provide promotional offers on various
payment options.
Stores conduct excellent consumer
promotions.
Speed of delivery of stores product.

Statements on Purchase Behavior

Statements Strongly Agree Neutral Disagree Strongly

Agree Disagree
I would care a great deal as to which type or
brand of product to buy.
I believe that all the available types & brands
of products in the stores are alike
It is important for me to buy the right product.
In making the selection of the products you
would be concerned about the outcome of
your choice.

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