CUSTOMERS PERCEPTION TOWARDS ORGANIZED RETAIL SECTOR A GRAND PROJECT REPORT

Prepared By HARDIK SOLANKI RAJESH PADNANI

Customers Perception Towards Organized Retail sector

Abstract: (80 words)

Service quality measures developed internationally are often accepted as adequate in India. This study evaluates the Retail Service Quality Scale (RSQS) developed in the U.S. and considered valid across a variety of formats and cultural contexts. Confirmatory factor analysis of the component structures using SPSS 15.0 indicates the RSQS dimensions are also valid in India. We also found we factors does a customer considers before selecting a particular Super Market, and also association between consumer perception and association with demographic factor.

Objectives

To assess the internal reliability of the overall

scale as well as its underlying dimensions; This model tests the five dimensions/secondorder factors, If an assessment of this model yields positive results, then Indian retailers can apply the same five dimensions to define strategic service focus areas To find out which factor does a customer considers before choosing a particular Super Market

Contd
To find out is there any is there significant difference of consumer perception towards

organized retail sector To find out is there is significance difference in the mean ratings of consumer perceptions towards organized retail in Ahmedabad region across different age groups of respondents To find out is there is systematic association between education of respondents & degree of their perception for employees of Super Markets as to their knowledge for handling customer queries.

Significance of the Study

The information and the findings obtained from the research can be utilized as information for

Organized Retail malls in improving service quality. Provide information and direction to related organization in order to improve the service quality. To find out various factors which encourages customers to visit the particular Organized retail Mall. To suggest measures for the Super Market owners based on the findings of the study.

Scope of the Study

Scope of area: This minor thesis studies only perception of the visitors of the selected Super

Markets only, that also in Ahmedabad region. Scope of period: This study collected data during 15th of January to 28th February, 2009 only. So we could not complete the whole seasonal cycle. Scope of demography: The study is limited only to customers of selected four Super Markets of Ahmedabad region.

Retail Industry
For Indian retailing, things started to change slowly in the 1980s, when India first began opening its economy. Textiles sector (which companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim) was the first to see the emergence of retail chains. Later on, Titan, maker of premium watches, successfully created an organized retailing concept in India by establishing a series of elegant showrooms.

RESEARCH METHODOLOGY
Sample Selection 400 retail shoppers. Data Collection Primary data
The research methodology is a survey using questionnaires to visitors, who visited Super Markets. Data was collected at four different places: Reliance Mart, Star Bazzar, Big Bazaar and Vishal Megha Mart.

CONTD
Secondary Data
The data was taken from difference sources such as articles, journals, researches, website and information from ProQuest Information . Research Design and Implementation The data was collected by filling up the questionnaires from respondents who were the shoppers of the four Super Markets. Research Instrument RSQS we have used modified RSQS instrument developed by Prof.Dabholkar GP\questionnaire.xlsx

Contd.
Data Analysis The data were coded, computed, and analyzed using the Statistical Package for Social Sciences (SPSS). Section 1: Personal Characteristic data is the analyzed by descriptive statistics, those are frequency and percentage. Section 2 : We had done ANNOVA test, RANK ANAYSIS test, T-TEST, CHI_SQUARE test in order to find out consumer perception towards organized retail sector in Ahmedabad region

Validated claims?
As we had used RSQS instrument which was Originated by Prof. Dhabolkar was we had done Factor Analysis to find it is valid or not, from results we could find that it is valid. Dimension 1 Physical Aspects Dimension 2 Reliability Dimension 3 Personal interaction Dimension 4 Problem Solving Dimension 5 Policy

Data analysis and interpretation

Que_1.1 super market has modern looking equipments.
Frequency
strongly disagree disagree can't say 8% 0% 5% strongly agree 24%

agree 63%

INTERPRETATION: From Above Pie Chart We Can See That Mostly Customers Of Super Markets Agree That Super Markets Have Modern Looking Equipments i.e. 63%.

super market's physical facilities are visually appealing

Frequency
disagree 6% can't say 18% strongly disagree 2% strongly agree 30%

agree 44%

INTERPRETATION: From Above Pie Chart We Can See

That Mostly Customers of Super Markets Agree That Super Markets Physical Facilities Are Visually Appealing i.e. 44%.

Materials associated with stores (such as pamphlets, or statements) are visually appealing at super market.
Frequency

strongly disagree disagree can't say agree strongly agree 0 20 40 60 80 100 120 140 160 180 200

Frequency

INTERPRETATION: From Above Bar Chart We Can See That Mostly Customers Agree Materials Associated With Stores Are visually appealing i.e. 46%.

when you have a problem super market shows a sincere interest in solving it.
Frequency

168

96 76 36

24

INTERPRETATION: From Above Bar Chart We Can See That Mostly Customers Agree That Super Markets Shows Sincere Efforts In Solving It i.e. 168 Respondents.

when super market promises to do something by certain time, it does so.

Frequency

120 60 76 112

32 strongly agree agree can't say disagree strongly disagree

INTERPRETATION:

We Got Conflicting Results From The Above Graph. 112 Respondents Agreed To The Question While At The Same Instance 120 Respondents Disagreed To It. So We Can Not Conclude Anything Exactly.

super market has merchandise available when customer wants it.

Chart Title
Series1

132 124 48 52 44 strongly agree agree can't say disagree strongly disagree

INTERPRETATION: Here We Can See That Majority Are In Favour That Super Markets Has Merchandise Available When Customer Wants It

super market insist on error free records and billing.

Chart Title
Frequency 140 112

64

72

12

INTERPRETATION: Here We Can Clearly See That

Majority i.e140 Respondents Do Not Agree That Billing Is Error Free. It Was Found That When Any Item Was Free With Other Goods They Were Charged For the Same, a Lot Of Errors Were Found In Billing

super market provides its service at the time it promise to do.

Chart Title
Series1

164

92 60 40 44

strongly agree

agree

can't say

disagree

strongly disagree

INTERPRETATION: Here We Can Clearly See That Majority of

Customers i.e. 164 Respondents Agree That Super Markets Provides Its Service When It Promise To Do So. Again We Can See That There Are Some Incidents In Which Super Markets Failed To Do So, We Can See 92 Respondents Disagree For The Same.

Employees in super market have the knowledge to answer your questions.

Chart Title
strongly disagree 11% disagree 20% strongly agree 14% agree 27% can't say 28%

INTERPRETATION:

From above graph it is concluded that 27% of the respondents agreed to the questions but 28% respondent said cant say so we can conclude that employees of super markets do have knowledge to answer questions of respondents but again for some products they dont have knowledge to answer customers questions.

Employees in super market give you prompt service

Chart Title
Frequency 128 108

72
52 40

INTERPRETATION: Here we can see that mostly respondent were neutral, so we can assume that they have never faced such situation.

Employees in super market are always willing to help you

188 200 150 100 50 24 0 48 84

56

Frequency

INTERPRETATION: Here from above graph we can conclude that employees in super markets are always ready to help you i.e. 47% of respondent agree upon above statement.

Employees in super market tell you exactly when services will be performed.
140 120 100 80 60 40 20 0 -20 Frequency 16 64 108 96 116

INTERPRETATION: From above graph we can see that mostly customers disagree with statement that employees in super market tell you exactly when service will be performed.

super market gives you individual attention.

strongly disagree 4% disagree 15%
strongly agree 18%

can't say 28%

agree 35%

INTERPRETATION: From above graph we can see that 35% people agree that super market gives you individual attention.

Employees in super market are never too busy to respond to your request.
strongly disagree 14% strongly agree 8% agree 33%

disagree 26% can't say 19%

INTERPRETATION: From above table we can see that 33% people are agree on the statement that employees in the super markets are never busy to respond to your request.

super market always considers customer demand.

Frequency
strongly disagree 5% disagree 21% strongly agree 17%

can't say 16%

agree 41%

INTERPRETATION: From above table we can see that 41% people are agree on the statement super markets always considers customers demand.

super market accepts all credit cards.

Frequency
strongly agree agree can't say 0% 2% 19% 22% disagree strongly disagree

57%

INTERPRETATION: Above table shows that most of the people agree with the statement that super market accepts all credit cards.

This store provides plenty of convenience parking for customers

Frequency

164

84

76 56 20

INTERPRETATION: here from above table we can say that Super Market do provide plenty of parking facilities to the customers.

Rank Analysis Test

Here in rank test we have multiplied frequency with there weighted mean and divided my total number of respondents. 1 Super market has modern looking equipment. 1*96+2*252+3*20+4*32+5*0=788\400 =1.97 Interpretation of rank analysis: here from above analysis we can see that lowest rank is of statement number 1 i.e. 1) Super market has modern looking equipment. So, we can say that customers are giving more weighted to modern looking equipment as a criteria for selecting Super Market followed by statements 16) Super market accepts all credit cards. 2) Super markets physical facilities are visually appealing. 3) This store provides plenty of convenient parking for customers.

Contd
4) Materials associated with service. (such as pamphlets or statements are Visually appealing at the super market). 14) Super market gives you individual attention. 15) Super market always considers customers demand. 12) Employees in Super market are always willing to help you. 5) When you have a problem, super market Stores shows a sincere interest in solving it. 7) Super market has merchandise available when the customers want it. 13) Employees in Super market tell you exactly when services will be performed. (after sale services) 6) When super market promises to do something by certain time, it does so. 9) Super market provides its service at the time it promise to do so. 11) Employees in Supper market give you prompt service. 10) Employees in super market have the knowledge to answer your question. 8) Super market insists on error free records and billings. 17) Employees in Super market are never too busy to respond to your request.

Hypothesis Testing.
Hypothesis testing no 1 t-test HO: There is no significant difference in the mean rating of consumer perception towards organised retail sector Ha: there is significant difference in the mean rating of consumer perception towards organised retail sector

Interpretation: significance value for statement no 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13, 15, 16 and 17 is 0.00 which happens to be less than .05 this significe that the consumers perception for organized retail is different

thus we reject the null hypothesis meaning that the various ratings of consumer perceptions towards organized retailing is different
However in case of statement no 7,14 the significant value is 0.13 and 0.410 respectively however this values are greater than 0.05 therefore this shows no significance difference in the mean rating of consumer perception towrds retail mall, hence this case we may accept null hypothesis specifying that there is no difference in the mean rating of consumer for the above statements.

Hypothesis testing 2 ANNOVA

HO: There is no significance difference in the mean ratings of consumer perceptions towards organized retail in Ahmedabad region across different age groups of respondents HA: There is significance difference in the mean ratings of consumer perceptions towards organized retail in Ahmedabad region across different age groups of respondents

Interpretation of hypothesis Here from above table we can see that F probability value in Anova table is 0.05. From the output table for one way anova we can see that probability value of F is 0.236,0.999,0.403,0.586,0.214,0.520,0.348,0.618,0.311,0.297,0.16 2,0.333 & 0.943 respectively for perception of super market in Ahmadabad region. Here in our case all the values of F test are greater than 0.05 which are not significant & therefore we accept null hypothesis & conclude that mean ratings of perception across different age groups for Super Markets in Ahmadabad region are not different.

Hypothesis testing no 3 (chi-square test) HO: there is no systematic association between education of respondents & degree of their perception for employees of Super Markets as to their knowledge for handling customer queries. HA: there is systematic association between education of respondents & degree of their perception for employees of Super Markets as to their knowledge for handling customer queries.

INTERPRETATION: The Chi-square test does not reviles that there is significance association between educational background of the respondents and their ratings of the knowledge of the employees of the super market to handle queries of the customers. From the chi-square test output table we see that our significance level of 0.63 has been achieved. This means the chi-square test is not showing significance association between the above two variables, even at 60% confidence level at thus we accept the null hypothesis and conclude that consumer perceptions with different educational background does not have different view related to the knowledge of employees of super market to handle the queries. As this case being between nominal variable and scale variable that is likert scale, we have also measured directional measures called ETA to find out direction and strength between the above variables. The ETA value is 0.059 which closer to 0 than 1 signifying no association between above two variables that is educational background related to knowledge of employees of super market of Ahmedabad region.

Conclusion & Recommendation

From rank analysis test , you can see that more weighted is given to

physical appearance of a super market. So we can say that super market owner should also considered physical evidence while providing retail service.

It was found that majority shoppers are female that to housewives.

From this we have to provide discounts and offers which attracts women interest.

From t-test we can see that there is significance difference in mean

ratings of consumers toward organized retail sector. So we need to consider each and every aspects of consumer expectations.

Here we can see that still there is provider gap-3 which can be

reduce by hiring right people providing them proper training and support systems and also by retaining them.

Limitations of the study

The main limitation of the study was time period, so we

could not cover festivals like Diwali, and other festivals that do affect perception of customers in sense of availability, crush at stores, and physical appearance. We could cover only four super markets due to time constrain. As our study was on consumer perception and it may differ according to situations.