APPLIED RESEARCH METHOD REPORT ON

“IMPACT OF SELECTED MARKETING MIX ON CUSTOMER SATISFACTION

OF GROCERY STORE CUSTOMERS IN HYDERABAD, PAKISTAN”

Authors

Syeda Rakhshinda Ara Anjum

Hafsa Khan
Syed Asher Ali
 Literature Review
2.1. Location and customer satisfaction
2.1.1. Ali et.al (2015) this study examines the key determinants of customer satisfaction in
grocery retailing and measure the link between stores attributes and customer
satisfaction in Malaysia. It aims to find out the effect size of these determinants on
overall customer satisfaction in an emerging market. A dataset from 313 shoppers
who had carried out their purchase in different type of grocery stores has been
analyzed. Using Partial Least Squares analysis method they show that three
determinants monetary value, service and convenience, and store quality image have
a positive impact on customer satisfaction. Results may help managers of grocery
stores in Malaysia to develop and implement more successful relationship marketing
strategies.

2.1.2. Chandrakala and Sudhahar (2018) this study focus is to find out the determinants
of consumer satisfaction in departmental stores from Tirupur district. A structured
questionnaire developed and data were collected. The sample consists of 400
consumers and exploratory factor analysis. ANOVA and f-test revealed that six of the
factors such as employees’ behavior, Leisure & refreshment, Ambience, Price &
Quality, Location and Exclusive Products were major predictors of consumer
satisfaction as they were found to be significant at one percent or five percent level.
The factor analysis, ANOVA and f-test results reveal that customer satisfaction is
influenced by the six factors resulted from factor analysis test and further, socio-
economic variables have a good voice-over the customer satisfaction while buying in
the departmental stores. The research can be extended in other areas of the State and
comparative study can be undertaken by taking other organized retail formats.

2.1.3. Malik et.al (2016) this research study is conducted with an objective to find out how
various factors influence shoppers' behavior towards supermarkets with 300
respondents consisting of 150 males and 150 females by using shop intercepts method
in the cities of Lahore and Faisalabad in Pakistan. Findings of this study provide the
insights to understand the influence of several factors like promotion and special
offers, easy access to supermarket, geographically convenience and locality, customer
services, exploration, pricing factor, socioeconomic effects, cleanliness, aesthetics
and escape from routine work on the consumer's perception.

2.1.4. Rana et.al (2014) this study aims retail chain stores in Bangladesh and determining
the factors constituting customer satisfaction. By doing interviews from customers of
three big retail chain stores the data were collected. From the results, it was
determined that the model suitably explains customer satisfaction and that retail chain
store owners and managers should focus on four major elements that are
 responsiveness, product quality, physical design and pricing policies if customer
satisfaction is to be treated as a strategic variable. The study found that
responsiveness and product quality were most important to customers followed by
price and physical design. Location did not have a significant effect on customer
satisfaction although the exploratory analysis and the secondary research supported it.

2.2. Pricing and customer satisfaction

2.2.1. Roth and Bosener (2015) developed that price is a main factor for the profit of any
firm, it is important to evaluate mechanism of customer price behavior and it is
factors as customer satisfaction is one of the factor from these two evaluate recent
academic literature on marketing and pricing. Further this study wants to find
research gap that can act as avenues for future research. First future researches
consider that fulfilling consumption experience, customer pays a certain price. These
prices are used by company to evaluate future price behavior. Second, future research
should make difference between influence of customer satisfaction and impact of
customers on customer price behavior. Third, some factors are important in
behavioral pricing such as price processing, price acquisition & price knowledge.
Fourth, research should consider further moderators of relationship between customer
satisfaction and customer price behavior. Ending these gaps create valuable
contribution to marketing research and practice.

2.2.2. Razzak et.al (2016) purpose of this study to taste product quality and price towards
customer satisfaction and to taste role of customer value in making better customer
satisfaction. This study is perception and casualty for toothpaste customers, Further
they get data through questionnaire method& they found that functional value of
toothpaste product is brought by the customer is not optimal yet to be main
consideration to satisfy the customers, product quality itself conforming the
production standard in advance.

2.2.3. Yadav and Verna (2015) this study found that young and high income consumer
trends for grocery shopping are rapidly moving from local kirana stores to organized
retail stores. The study was carried out in indoor market. Many variant statistical
techniques were used to gather data through structured questionnaire. The major
motive of study is to understand while shopping for grocery Indian consumers’ move
from conventional kirana stores to retail stores. The study reveals that as compare to
kirana stores in relation with price, customers are more satisfied with organized retail
stores. Small kirana stores now improving their efficiency in business to involve
technology like good inventory system, credit and debit card machines.
 2.2.4. Djumarnoet.al (2018) developed effect of product quality & prices, as independent
factors to customer satisfaction, customer loyalty of baliratih websites in Jakarta &to
know reviews of independent variables. The questionnaires were given to one twenty-
five respondents & data was taken through simple random sampling techniques.
Through structural equation modeling by SPSS Amos programme were used to
analyze the data. The result has valuable impact of product quality & prices to
customer satisfaction, prices & customer loyalty to customer satisfaction. Finally the
findings show that purchase decisions intervene relationship product quality & prices
to customer loyalty of baliratihin Jakarta. Future studies investigate other variables
which influence satisfaction & loyalty in online shopping.

2.3. Promotion and customer satisfaction

2.3.1. Watanabe et.al (2013) this study aims to investigate the relationship between
consumer satisfaction and image attributes in grocery stores. A quantitative study was
conducted among 400 individuals from southwest brazil. Exploratory factor anaylsis
and structural equation modeling methods were implemented for data analysis.
Results stated that the constructs envirionement and promotions were not considered
important in determining satisfaction, however the attributes personell, product and
price posed a postive impact on satisfaction, with price having the highest impact.

2.3.2. Bakator et.al (2018) the study examines the influence that promotional activities
have on customer satisfaction. This study also aims to determine the effectiveness of
promotional activities on customer satisfaction in the marketing environment.
Collection of data was carried out through online survey from customers, consumers
of different products. The results showed that promotional activities have a greater
influence on customers post purchase decision.

2.3.3. Ubeja (2014) the purpose of the study was to examine the effects that the promotion
mix have on customer satisfaction in grocery stores of Indore city. Data was collected
from the sample of 175 active grocery shoppers. Structured questionnaire was
distributed and the sales promotion mix factors were evaluated which were lucky
draw offers, discount and warranty offers. The results implied that the average
customers of Indore city were not much sales promotion concsious while the students
were quiet consious about these sales promotion mix.
2.3.4. Jallow and Dastane (2016) the research investigates the effect of sales promotion on
the purchase intention and customer satisfaction of customers in grocery stores in
Malaysia. Empirical data was collected from 150 respondents with the help of self
administered questionnaire and the analysis was carried out through correlation and
regression methods to examine the relationship among variables. Results infer that the
independent variables like bonus packages, free samples, premiums and price
discounts have a greater positive influence on the customer satisfaction of grocery
store customers.
 METHODOLOGY

3.1 Research Approach

The research approach of a study can will be defined as quantitative approach. The aim of the
research report is to re-confirm the impact of selected marketing mix on customer satisfaction of
grocery store customers in Hyderabad, Pakistan, to see how different variables such as location,
pricing and promotion affects customer satisfaction in Pakistan.

3.2 Research Purpose

In this study, the customer satisfaction of grocery store customers will be examined by analyzing
how the three selected independent variables Location, Pricing and Promotion affects the
dependent variable customer satisfaction. The hypothesis is also will be further tested to see if
there is a significant or insignificant impact of these variables on customer satisfaction.

3.3 Research Design

A research design defines an overall research strategy of a study. It is defined as a framework or
agenda for data collection and analysis (Bryman, 2007). If we do this research so as you see this
is quantitative research so primary data will be taken from three to four different grocery stores.

3.4 Data Source

The data source of the study is ‘primary’; the data will be collected by the current user himself.
The sources from which the primary data will be collected are that are Dawood, Maxbachat and
Grocers mart. Primary data is very expensive to collect and this is the kind of a data which is
easily not available as compare to secondary data which does not involves the collection of
research data directly from the respondents.

3.5 Population of the Study

The population of a research study is participants or the respondents of the study that possess
similar characteristics or traits (Weiss, 2012). As the aim of the study is to explain the impact of
selected marketing mix on customer satisfaction of grocery store customers in Hyderabad,
Pakistan by analyzing different independent variables so here the sample size is based on.
3.6 Research Variables
Research is the process that defines the relationship between the variables. A variable is defined
as the concept that can have different quantitative values. A variable which is affected by another
variable means it is a consequence of the many other variables it is called dependent variable. On
the other side, the variable that causes a change in the other variable is called independent
variable (Kothari and Gaurav 2014).

The present also studies the relationship between different variables. The below describe the
dependent and independent variables of the study and statistical techniques to measure the
relationship between these variables.

Table 1: Hypothesis, Variables, and Techniques

S. No Hypothesis Variables Based on Technique

Independent Dependent objectives
1 H1 Location Customer 1 Multiple regression
Satisfaction analysis
2 H2 Pricing Customer 2
Satisfaction Multiple regression
analysis
3 H3 Promotion Customer 2 Multiple regression
Satisfaction analysis
REFERENCES
1. Ali M, A, Bazin, N, E, N and Shamsuddin, S, M. (2015), Key determinates of customer
satisfaction: evidence from Malaysia grocery stores, Journal of Theoretical and Applied
Information Technology, Vol.74 No.3, pp, 286-299.

2. Chandrakala, R and Sudhahar, M. (2018), A Study on Customer Satisfaction towards

Departmental Stores in Tirupur District, International Journal of Management studies, Vol.5 No.
3(8), pp, 102-118.

3. Malik, S, Zameer, A, Khaliq, I, H and Uzair, L. (2016), Determinants of Consumer

Satisfaction at Supermarkets: An Empirical Study from Pakistan, SSRN Electronic Journal, Vol.
28 No.1, pp, 625-631.

4. Rana, S, M, S, Osman, A, and Islam, A. (2014), Customer satisfaction of retail chain stores:
evidence from Bangladesh, Journal of Asian Scientific Research, Vol.4 No.10, pp, 574-584.

5. Roth, S and Bosener, K. 2015, the influence of customer satisfaction on customer price
behaviour: literature review and identification of research gap, bol65, issue 1, pp1_33.

6. Razzak, I, virwanto, Z and triatmanto, B.2016, the impact of product quality & price on
customer satisfaction with mediator of customer value, vol. 30.

7. Yadav, R, k and verma, M. (2015), customer preferences towards retail stores for food in
grocery in evolving retail market, vol.60, pp102_111.

8. Karmugil, S, and Kannapa, R. (2015), A STUDY ON CUSTOMER SATISFACTION

TOWARDS RETAIL STORES IN TIRUCHIRAPPALLI TOWN, vol.4/ no.6/June 2015.

9. Djurmano, anjani, S, and Djamaluddin, S. (2018), effect of product quality & price on
customer loyalty through customer satisfaction, volume 7 issue at
ver.1//August.2018//pp_13_20.

10.Watanabe, Eluiza & Lima-Filho, Dario & Torres, Cláudio. (2013). Store Image Attributes and
Customer Satisfaction in Supermarkets in Campo Grande-MS. Revista Brasileira de Marketing.
12. 85-107. 10.5585/remark.v12i4.2561.

11.Bakator, Mihalj & Boric, Sladjana & Paunovic, Mina. (2017). Influence of advertising on
consumer-based brand loyalty. Journal of Engineering Management and Competitiveness. 7. 75-
83. 10.5937/jemc1702075B.

12. Satnam Ubeja, D.D. Bedia (2014). Saaransh, RKG Journal of Mangement. Vol.5-
Issue2/Pub.0975-4601
13. Jallow, Hawa and Dastane, Omkar (2016), Effect of Sales Promotion Schemes on Purchase
Quantity: A Study of Malaysian Consumers (November 30, 2016). Management & Marketing,
volume XIV, issue 2/2016
 APPENDIX

IMPACT OF SELECTED MARKETING MIX ON CUSTOMER SATISFACTION OF

GROCERY STORE CUSTOMERS IN HYDERABAD, PAKISTAN

QUESTIONNAIRE

1. Please select your gender

○ Female
○ Male

2. Please select your age group 3. Please select your education level

○ Between 20 to 30 Years ○ Intermediate

○ Between 31 and 40 Years ○ under-Graduated
○ Between 41 and 50 Years ○ Graduated
○ 51 Years and above ○ Master

4. Please select your monthly income 5. Please select your occupation status

○ Rs.5,000-Rs 35,000 ○ Employed

○ Rs.36, 001- Rs.50, 000 ○ Entrepreneur
○ Rs 51,001- Rs.100, 000 ○ Student
○ More than Rs 100,000 ○ Retired

No. Item: Location Highly Disagree Neutral Agree Highly

disagree 4 Agree
1 2 3
5
01 The supermarket is located
near to your workplace
02 The supermarket is located in
residential area
03 The location of the
supermarket is easily
accessible

No. Item: Pricing Highly Disagree Neutral agree Highly

disagree 4 Agree
1 2 3 5
01 Membership card is
 available
02 Price of goods is appropriate
to their quality.
03 The price is competitive

No. Item: promotion Highly Disagree Neutral agree Highly

disagree 4 Agree
1 2 3
5
01 The supermarket advertise
the promotion in local
newspapers
02 The supermarket always
offers discounts and
promotion
03 The supermarket always
organized special events

No. Item: customer satisfaction Highly Disagree Neutral agree Highly

disagree 4 Agree
1 2 3
5
01 I recommend this
Supermarket to others.
02 I always do shopping from
this supermarket.
03 I am pleased to prefer this
supermarket.

THANK YOU FOR THE RESPONSE.