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Project Report

On

“An Analysis on Consumer Satisfaction towards


Selected Organized Retail Outlets in Baroda.”

Submitted to
THE MAHARAJA SAYAJIRAO UNIVERSITY OF BARODA, BARODA.

Component-2
Mid Semester Examination 2020-21

By
Name of Student
Department of Commerce & Business Management
(Exam Seat No. : 451211, PRN No. 12345678987745)

Under the Guidance of


Name of guide
Designation
Department of Commerce and Business Management
Faculty of Commerce
The Maharaja Sayajirao University of Baroda, Vadodara.

May 2021

1
List of Brief Contents

Serial No. Particulars Page No.


I. List of Brief Contents 2
II. Detailed Contents 3
III. Bonafide Certificate 6
IV. Acknowledgement 7
V. Certificate of Originality 8
VI. Letter of Submission 9
VII. Students – Project Guide Interaction Report 11
VIII. Summary 12
Chapter – 1 Introductions 13
Chapter – 2 Company Profile 29
Chapter – 3 Review of Literatures 36
Chapter – 4 Research Methodology 40
Chapter – 5 Data Analysis & Interpretations 44
Chapter – 6 Findings, Suggestions and Conclusions 68
Bibliography & Webliography 74
Annexure : Questionnaire 77

2
Detailed Contents

Chapter No. Particulars Page No.


Chapter – 1 1.0 Introduction 14
1.1 Meaning of Retailing 16
1.2 Retailer‘s Role in Supply Chain 17
1.3 Retailers Create Value 17
1.3.1 Providing Assortment 17
1.3.2 Breaking Bulk 18
1.3.3 Holding Inventory 18
1.3.4 Providing Services 18
1.4 Unorganized Vs. Organized Retails 18
1.4.1 Unorganized Retailing 19
1.4.2 Organized Retailing 19
1.5 Retail Industry in India 19
1.6 SWOT Analysis of Retail in India 21
1.7 Framework of Retailing 21
1.8 Types of Retailers 22
1.8.1 Department store 22
1.8.2 Discount store 22
1.8.3 Warehouse store 22
1.8.4 Variety store 23
1.8.5 Mom-And-Pop 23
1.8.6 Speciality store 23
1.8.7 General store 23
1.8.8 Convenience store 23
1.8.9 Hypermarkets 23
1.8.10 Supermarket 23
1.8.11 Mall 23
1.8.12 E-Retailer 24

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1.8.13 Vending machine 24
1.9 Supermarkets 24
1.10 Retail Store Atmosphere 26
1.10.1 Lighting 26
1.10.2 Colour 26
1.10.3 Music 26
1.10.4 Scent 26
1.11 Opportunities in Retailing 26
1.11.1 Managerial Opportunities 26
1.11.2 Entrepreneurial Opportunities 27
1.12 The SERVQUAL Model 27

Chapter – 2 2.0 Company Profile 29


2.1 Big Bazaar 30
2.1.1 Big Bazaar Management 31
2.1.2 Schemes and Innovations 31
2.2 D-Mart 32
2.3 Hyper City 34
2.3.1 Mission and Vision 34
2.3.2 Hyper City Management 35
2.3.3 Schemes and Innovations 35

Chapter – 3 3.0 Review of Literatures 36


Chapter – 4 4.0 Research Methodology 40
4.1 Rationale of the study 41
4.2 Objectives of the study 41
4.3 Sources of Information 41
4.3.1 Primary Data 41
4.3.2 Secondary Data 42
4.4 Research Instrument 42
4.5 Sampling decisions 42
4.5.1 Representative Sample 42
4.5.2 Sample Frame 42
4.5.3 Sample Size 42

4
4.5.4 Sample Design and Methods 42
4.5.5 Sample Media 42
4.6 Significance of the study 43
4.7 Limitations of the study 43

Chapter – 5 5.0 Data Analysis and Interpretations 44


5.1 Demographic Information 45
5.2 Satisfaction Based Statements (Five Dimensions) 52
5.3 Factors influencing to the Customers 58
5.4 Promotional activities based Questions 59
5.5 Hypothesis Testing 62

Chapter – 6 6.0 Findings, Suggestions, and Conclusions 68


6.1 Findings 69
6.1.1 By the demographic questions 69
6.1.2 By the satisfaction based statements 70

6.1.3 By the questions of factors influencing to 71


consumers
6.1.4 By the question of promotional activities 71
6.1.5 By framing the hypothesis 72

6.2 Suggestions 72

6.3 Conclusion 73

BIBLIOGRAPHY & WEBLIOGRAPHY 74


Article References 75
Bibliography 76
Webliography 76

ANNEXURE : QUESTIONNAIRE 77

5
Bonafide Certificate
12th April 2016

This is to certify that this Project Report entitled “An Analysis on Consumer
Satisfaction towards Selected Organized Retail Outlets in Baroda.” which is to be
submitted to the office of the Examination Registrar of the Maharaja Sayajirao
University of Baroda. This has been prepared by _______________________for the
partial fulfilment of the award of the Post Graduate Diploma in Business
Administration in the academic year 2020-2021 for the evaluation in lieu of the
Annual Examination to be held in April-2021.

He has carried out this work under my personal supervision and guidance.

Guide Name
Designation
Department of Commerce and Business Management
Faculty of Commerce
The Maharaja Sayajirao University of Baroda, Vadodara.

6
Certificate of Originality
Date ____________

I, _________________ (Exam Seat No. 123456), the undersigned hereby


declare that the Project Report entitled “An Analysis on Consumer Satisfaction
towards Selected Organized Retail Outlets in Baroda.” submitted in partial
fulfilment for the award of the Post Graduate Diploma in Business
Administration in the academic year 2015-2016 for the evaluation in lieu of the
Annual Examination to be held in April-2016 is my own work and has been
carried under the guidance of Name of Guide.

The work is an original one and has not being submitted earlier to this
University or any other institution/organization for fulfilment of the requirement
of a course or for award of any Degree/Diploma/Certificate. All the sources of
information used in this project report have been duly acknowledged in it.

Name of Student
PRN:
Exam Seat No. :
Department of Commerce & Business management,
Faculty of Commerce,
The Maharaja Sayajirao University of Baroda.

7
Summary of the Study

This study on customer satisfaction on Retailer Service Quality variables aims


to identify the dimensions that organised retailers offers the customers. An
analysis of the various retail service quality variables were done to understand
the relationship between them. The study also tries exploring the factor that
attracts the customers towards the organised retail sector in Baroda city. As
organized retailers are seen as offering similar products in the outlets,
improving service quality is seen as critical to ensure customer loyalty. With the
introduction of Foreign Direct Investment in multi brand retailing, more
international players are expected to enter the Indian market this intern will
bring more competition in this retail sector. For benchmarking themselves with
global standards the Indian retailers will have to improve their service quality.
This study tries to find interrelationship between various Retail Service
Qualities dimensions, which will help the retailers to identify the steps needed
to improve the overall quality of service.
Keywords: Customer satisfaction, retail service quality, organized retail.

8
Chapter - 1
Introduction

9
“An Analysis on Consumer Satisfaction towards Selected
Organized Retail Outlets in Baroda.”

1.0 Introduction

Which business considers every individual a customer? Which business accounts for
less than 10 per cent of the worldwide labour force and is still the single largest
industry in most nations? What is common between Wal-Mart, amazon.com, and the
small kirana (grocer) stores that dot your neighbourhood? The answer is retailing, the
last link in the chain of production, which begins from the extraction stage, moves on
to manufacturing, and ends in the distribution of finished goods and services to the
final consumer.

When goods are put in the hands or in the shopping bags of consumers, retailers
obtains revenue-and so do the wholesalers, distributors, and manufacturers who make
up the consumers-goods distribution chain.

Retailing is such a common part of our everyday lives that we often just take it for
granted. Retail managers make complex decisions in selecting their target markets and
retail locations; determining what merchandise and services to offers; negotiating with
suppliers; distributing merchandise to stores; training and motivating sales associates;
and deciding how to price, promote, and present merchandise. Considerable skill and
knowledge are required to make these decisions effectively. Working in this highly
competitive, rapidly changing environment is both challenging and exciting, and it
offers significant financial rewards.

The word retail is derived from the French word ‗retaillier‘ meaning to cut a piece off
or to break bulk. In simple terms, it implies a first-hand transaction with the customer.
Retailing involves a direct interface with the customer and the co-ordination of
business activities from end to end right from the concept of design stage of a product
or offering to its delivery and post-delivery service to the customer. This industry has

10
contributed to the economic growth of many countries and is undoubtedly one of the
fastest changing and dynamic industries in the world today.
India started its Retail Journey since ancient time. In Ancient India there was a concept
of weekly HAAT, where all the buyers and sellers gather in a big market for bartering.
It takes a pretty long times to step to shape the modern retail. In between these two
concepts (i.e., between ancient retail concept and the modern one there exist modern
Grocery/mom and pop shops or Baniya ki Dukan. Still it is predominating in India So
the Indian retail industry is divided into two sectors—organized and unorganized. The
Indian retail industry is now beginning to evolve transformation that has swept other
large economies. There is a vast change in Indian retail, the liberalization of the
consumer goods industry initiated in the mid-1980‘s and accelerated through the 1990s
has begun to impact the structure and conduct of the retail industry. The concept retail,
which includes the shopkeeper to customer interaction, has taken many forms and
dimensions, from the traditional retail outlet and street local market shops to upscale
multi brand outlets, especially stores or departmental stores. Hence, focusing on two
aspects of retail marketing, i.e., store retailing and non-store retailing. Store Retailing
as the departmental store, which is a store or multi brand outlet, offering an array of
products in various categories under one roof, trying to cater to not one or two but
many segments of the society and Non store retailing as the direct selling, direct
marketing, automatic vending.

Retailing has become such an intrinsic part of our everyday lives that it is often taken
for granted. The nations that have enjoyed the greatest economic and social progress
have been those with a strong retail sector. Why has retailing become such a popular
method of conducting business? The answer lies in the benefits a vibrant retailing
sector has to offer – an easier access to a variety of products, freedom of choice and
higher levels of customer service.

Over the last few years, there have been sweeping changes in the general retailing
business. For instance, what was once a strictly made-to-order market for clothing has
now changed into a ready-to-wear market? Flipping through a catalogue, picking the
right colour, size, and type of clothing a person wanted to purchase and then waiting
to have it sewn and shipped was the standard practice in the earlier days. By the turn
of the century some retailers set up a storefront where people could browse, while

11
new pieces were being sewn or customized in the back rooms. Almost all retail
businesses have undergone a similar transition over the years.

1.1 Meaning of Retailing

The distribution of finished products begins with the producer and ends at the ultimate
consumer. Between the two of them there is a middle person – the Retailer. Retailing
is defined as set activities or sells a products or a service to consumers for their
personal or family use. It is responsible for matching individual demands of the
consumer with supplies of all the manufacturers. The word ―RETAIL‖ is derived
from the French word Retaillier, meaning ― to cut a piece of ‖ or ― to break bulk. ‖
often people think of retailing only as the sale of products in the stores, but retailing
also involves the sale of services such as overnight loading in a motel, a haircut, a
DVD rental, or a home-delivered pizza. Not all retailing is done in stores. Examples
of non-store retailing in products sales are Flipkart.com, Amazon.com, Snapdeal.com,
etc. and for services Bookmyshow.com, Redbus.com, Justdeal.com, cartrade.com etc.

The world over retail business is dominated by small family-run chains and regionally
targeted store. Gradually more and more markets in the western world are being taken
over by billion-dollar multinational conglomerates, such as Wal-Mart, Sears,
McDonald‘s, marks and Spencer, etc. The larger retailer have set up huge
supply/distribution chain, inventory, management systems, financing pacts, and wide-
scale marketing plans which allowed them to provide better services at competitive
prices by achieving economies of scale.

In an era of globalization, liberalization, and a highly aware customer, a retailer is


required to make conscious efforts to position himself distinctively to face the
competition. This is determined to a great extent by the retail mix strategy followed by
a company to sell its products.

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1.2 Retailer’s Role in Supply Chain
A Retailers is a business that sells product and/or services to consumers for their
personal or family use. Retailers are key component in a supply chain that links
manufacturers to consumers. A supply chain is a set of firms that make and deliver
goods and services to consumers. The below chart shows the retailer‘s position within
a supply chain.

Manufacturers typically design and make products and sell them to retailers or
wholesalers. When manufacturers like Nike and Apple sell directly to consumers,
they are performing both production and retail business activities. Wholesalers
engage in buying, taking title to, often storing, and physically handling goods in large
quantities and then reselling the goods (usually in smaller quantities) to Retailers or
other businesses. Wholesalers and retailers may perform many of the same functions,
but wholesaler focus on satisfying retailers‘ needs, while retailers direct their efforts
to satisfying the need of the Consumers.

1.3 Retailers Create Value

Why are retailers needed? Wouldn‘t it be easier and cheaper to buy directly from
manufacturers? The answer, generally, is no because retailers are more efficient at
performing the activities described below that increase the value of products and
services for consumers. These value-creating activities includes (1) Providing an
assortment of products and services, (2) Breaking the bulk, (3) Holding the inventory,
and (4) Providing the services.

1.3.1 Providing Assortments:

Supermarkets typically carry 20,000 to 30,000 different items made by more


than 500 companies. Offering an assortment enables their consumers to

13
choose from wide selection of products, brands, sizes, and prices at one
location.

1.3.2 Breaking Bulk:

To reduce transaction cost, manufactures and wholesalers typically ship cases


of frozen dinners or cartons of blouses to retailers. Retailers then offer the
products in smaller quantities tailored to individual consumers‘‘ and
households‘ consumption pattern-an activity called breaking bulk.

1.3.3 Holding Inventory:

A major value-providing activity performed by retailers is holding inventory


so that the product will be available when consumers want them. Thus,
consumers can keep a smaller inventory of product at home because they
know local retailers will have the product available when they need more.

1.3.4 Providing Services:

Retailers provide services that make it easier for customers to buy and use
products. For example, retailers offer credit so that consumers can have a
product now and pay for it later. They display products so that consumers can
see and test them before buying. Some retailers employ salesperson in stores or
maintain Website to answer questions and provide additional information about
products.

1.4 Unorganized Vs. Organized Retails

Future of retail sector in India is swerving-on one side organized retail is marching
into life of urban consumers, while on the other our own neighbourhood ‗Grocery
stores‘ are resisting fiercely with their existing strong foothold. India today is at the
crossroads with regard to the retail sector. A shift between organized and unorganized
retail sector is evident, which hassled to a number of speculations on the fate of Indian
retail. Unorganized sector cannot ignore. In any newspaper or television channel, we
find hordes of news about happening in organized retail sectors, which is indeed fairly
real situation. While the role of organized retail sector in growth of economy cannot
be denied, but one thing is also of extreme importance that unorganized retail format

14
is a support to a large chunk of population providing direct employment to 39,500,000
individuals. So there is no way that government or anyone can discount these
foundation stone of Indian economy.

1.4.1 Unorganized Retailing:


Unorganized Retailing, refers to the traditional formats of low-cost retailing, for
example the local Kirana shops, owner manned general stores, pan/beedi shops,
convenience stores etc. Indian retail is dominated by a large number of small
retailers consisting of the local Kirana shops, owner-manned general stores,
chemists, footwear shops, apparel shops, pan and beedi shops, and hand-cart
hawkers etc. which together make up the so called ―unorganized retail‖ or
traditional retail.

1.4.2 Organized Retailing:


Organized Retailing refers to trading activities undertaken by licensed
retailers, that is, those who are registered for sales tax, income tax, etc. These
include the corporate-backed hypermarkets and retail chains, and also the
privately owned large retail businesses.

1.5 Retail Industry in India


In India, the retail sector is the second largest employer after agriculture. It is highly
fragmented and consists predominantly of small, independent, and owned-managed
shops. Besides, the country is also dotted with low-cost kiosks and pushcarts. There
are some 12 million retail outlets of which nearly 5 million sell food and related
products. Valued at US$511 billion according to leading commercial real estate
advisor, C.B. Richard Ellis‘ finding in 2008, the Indian retail market is the fifth
largest retail destination globally.

There has been a boom in the retail trade in India owing to a gradual increase in the
disposable income of the middle-class households. More and more players are
venturing into the retail business with new and attractive formats, such as malls,
supermarkets, discount stores, departmental stores, transforming altogether the
traditional bookstores, chemist shops, and furnishing stores. According to industry
estimates, the Indian retail market is estimated to grow from US$330 billion in 2007

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to US$ 427 billion by 2010 and US$637 billion in 2015. Simultaneously, organized
retail which at present accounts for 4 percent of the total market is likely to increase
its share to 22 percent by 2015. The 30 million sq. ft. of available mall space in India
at present is expected to increase to 100 million sq. ft. by 2010, estimates that the
number of operational malls will more than double to over 412 with 205 million sq. ft.
by 2013, and further 715 malls by 2015 on the back of major retail developments ever
in tier II and tier III cities. At presents 40 percent of malls are concentrated in the
smaller cities.

The ‗Transitional‘ cities are firmly making their mark on the retail sector. Whilst
organized retailing among them is a more recent phenomenon than in the NCR and
Mumbai, they are soon catching up as both retailers and developers tap into the large
middle class of those cities. In this category are included the cities of Bangalore,
Kolkata, Hyderabad, Pune, and Ahmadabad, all of which have significant mall
development in the pipeline.

The ‗High Growth‘ cities are a small group that have entered a high growth phase.
They include cities with substantial consumer spending power like Ludhiana, Jaipur,
Chandigarh, Kochi, Luck now, Surat, and Vadodara.

The ‗Emerging‘ cities have been branded thus on the basis of plans drawn up by
major hypermarkets and departmental stores retailers for the future. Factor such as
growing income, rising aspirations, scarcity of branded stores, and growing corporate
activity are leading to a rise in demand for organized retailing in these cities. The
urban centres in this category include Nagpur, Indore, Nashik, Bhubaneshwar, Vizag,
Coimbatore, Mangalore, Mysore, and Thiruvananthapuram. At these centres,
Information Technology and/or Information Technology Enable Services companies
are rapidly expanding their workforce, which in turn are stimulating retailer activities.
This group also includes some major tourist destinations such as Amritsar, Agra, and
Goa and number of southern Indian cities, which have so far been less impacted by
organized retail.

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1.6 SWOT Analysis of Retail in India

1.7 Framework of Retailing


To better appreciate retailing‘s role and the range of retailing activities, let us view it
from three different perspective :

 Suppose we manage a manufacturing firm that makes vacuum cleaners. How


should we sell these items? We could distribute via big chain such as best buy or
small neighbourhood appliance store, have our own sale force visit people in their
homes, or set up our own stores. We could sponsor TV infomercials or magazine
ads, complete with a toll-free phone number.

 Suppose we have an idea for a new way to teach first graders how to use computer
software for selling and vocabulary. How should we implement this idea? We
could lease a store in a strip shopping centre and run ads in a local paper, rent
space in a Y and rely on teacher referrals, or do mailings to parents and visit

17
children in their homes. In each case, the service is offered ―live.‖ But there is
another option: we could use an animated website to teach children online.

 Suppose that we, as consumers, want to buy apparel. What choices do we have?
We could go to a departmental store or an apparel store. We could shop with a
full-service retailer or a discounter. We could go to a shopping centre or order
from a catalogue. We could look to retailers that carry a wide range of clothing or
look to firms that specialize in one clothing category. We could surf around the
web and visit retailers around the globe.

There is a tendency to think of retailing as primarily involving the sale of tangible


(physical) goods. However, retailing also includes the sale of services. And this is a
big part of retailing! A service may be the shopper‘s primary purchase or it may be
part of the shopper‘s purchase of a good. Retailing does not have to involve a store.
Mail and phone orders, direct selling to consumers in their homes and offices, web
transactions, and vending machine sales all fall within the scope of retailing. Retailing
does not even have to include a ―retailing.‖ Manufacturers, importers, non-profit
firms, and wholesales act as retailers when they sell to final consumers.

1.8 Types of Retailers

1.8.1 Department store


Department stores are very large stores offering a huge assortment of soft and
hard goods often bear a resemblance to collection of specialty store. A retailer
of such store carries variety of categorises and has broad assortment at average
price. They offer considerable customer service.

1.8.2 Discount store


Discount store tends to offer a wide array of products and services, but they
compete mainly on price offers extensive assortment of merchandise at
affordable and cut-rate price. Normally, retailers sell less fashion-oriented
brands.

1.8.3 Warehouse store


Warehouse that offer low-cost, often high-quality goods plied on pallets or steel
shelves; warehouse clubs charge a membership fee.

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1.8.4 Variety store
Variety stores offer extremely low cost goods, with limited selection.

1.8.5 Mom-And-Pop
A small retail outlet owned and operated by an individual or family. Focuses on
a relatively limited and selective set of product.

1.8.6 Speciality store


A speciality store has a narrow marketing focus – either specializing on specific
merchandise, such as toys, shoes, or clothing, or on target audience, such as
children, tourists, or oversize women. Pricing is usually not the priority when
consumers are deciding upon a speciality store.

1.8.7 General store


A general store is a rural store that supplies the main need for the local
community.

1.8.8 Convenience store


A convenience store provides limited amount of merchandise at more than
average prices with a speedy checkout.

1.8.9 Hypermarkets
Provides variety and huge volumes of exclusive merchandise at low margins.
The operating cost is comparatively less than other retail formats.

1.8.10 Supermarket
A supermarket is a self-service store consisting mainly of grocery and limited
products on non-food items. They may adopt a Hi-Lo or an EDLP strategy for
pricing. The supermarket can be anywhere between 20000 and 40000 square
feet. Example: MORE MEGA STORE

1.8.11 Mall
A shopping mall has a range of retail shops at a single outlet. They can include
product, food, and entertainment under one roof. Malls provide 7% of retail
revenue in India.

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1.8.12 E-Retailer
The customer can shop and order through the internet and the merchandise is
drooped at the customer‘s doorstep or an e-retailer. Here the retailers use drop
shipping technique. They accept the payment for the product but the customer
received the product directly from the manufacturer or a wholesaler. However,
it is important for the customer to be wary about defective product and non-
secure credit card transaction.

1.8.13 Vending machine


A vending machine is an automated piece of equipment wherein customers
can drop the money in the machine and acquire the product. Some stores taken
a non-frills approach, while other are mid-in commerce; a hypermarket is a
superstore combining a supermarket and a department store. The result in an
expansive retail facility carrying a wide range of product under one roof,
including full groceries lines and general merchandise. In theory,
hypermarkets allow customers to satisfy all their routine shopping need in one
trip.

1.9 Supermarket

―A retail market that sells foods, convenience goods, and household


merchandise arrange in open mass display‖
It is a large, low-cost, low-margin, high-volume, self-service store that carries a wide
variety of food, laundry and household products. The world supermarket means
different things to different countries around the world, as global supermarket chain
have discovered recently. In the absence of a universal definition for the supermarket
there can be no authoritative reference point in history that marks the shift from small
general store to supermarket. In India, it is one of the fastest growing retail formats in
the country. MORE MEGA STORE, D-MART, V-MART are some of the examples of
supermarkets.

One of the criticisms against the supermarkets and big chain stores is related to their
impact on the town. It has also been observed that chain stores adopt several anti-
competitive practices as colluding with suppliers.

20
Supermarkets usually appeal to customers on account of their low prices and because of
their pioneering role in self-service retailing. Research has proven that customer are
inclined to buy more if they did not have to ask for items or be constantly advised on
what to buy. In addition to low price, supermarkets also attractive and organised
layouts. As these stores were specifically for car users, they did not need to be situated
in the expensive centre of town but instead were typically found in lower rent
neighbourhoods on the outskirts.

Conventional supermarket are primarily self-service food stores offering almost all
items of daily necessity like groceries, meat products, and fresh produce. Although a
major portion of their sales come from food items, most supermarket have added many
essential food item as well.

21
1.10 Retail Store Atmosphere
Retailers use lighting, colours, music, and scent to stimulate consumers‘ perceptual
and emotional responses and ultimately affects their purchase behaviour. Atmosphere
refers to the design of an environment by stimulation of the five senses.

1.10.1 Lighting

Good lighting in a store involves more than simply illuminating space.


Lighting can highlight merchandise, sculpt space, and capture a mood or
feeling that enhances the store‘s image. Having the appropriate lighting has
been shown to positively influence customer shopping behaviour.

1.10.2 Colour

The creative use of colours can enhance a retailer‘s image and help create a
mood. Warm colours (red, golden, and yellow) produce emotional, vibrant,
hot and active responses, whereas cool colours (white, blue, and green) have
peaceful, gentle, calming effect. Colours may have a different impact
depending on the culture of the consumers.

1.10.3 Music

Like colour and lighting, music can either add to or detract from a retailer‘s
total atmospheric package. Retailers also can use music to attract consumer‘s
behaviour. Music can control the pace of the store traffic, create an image, and
attract or direct consumers‘ attentions.

1.10.4 Scent

Smell has a large impact on consumer‘s mood and emotions. Scent, in


conjunction with music, has a positive impact on the consumer‘s level of
excitement and satisfaction with the shopping experience.

1.11 Opportunities in Retailing

1.11.1 Management Opportunities:


To cope with a highly competitive and challenging environment, retailers hire
and promote people with a wide range of skill and interests. Students often
view retailing as part of marketing, because managing distribution (place) is

22
one of the 4P‘s of marketing. But retailers are businesses and, like
manufacturers, undertake all the traditional business activities. Retailers raise
capital from financial institutions, purchase goods and services, use
accounting and management information system to control their operations,
manage warehouses and distribution system, design and develop new
products, and undertake marketing activities such as advertising, promotions,
sales force management, and market research. Thus, retailers employ people
with expertise and computer system, as well as marketing.

1.11.2 Entrepreneurial Opportunities:


Retailing also provides opportunities for people who to start their own business.
Some of the world‘s richest people are retailing entrepreneurs. Many are well
known because their names appear over stores‘ doors, others you may not
recognize. There are some big innovative retail entrepreneurs include Kishore
Biyani (founder of Future Group), Jeff Bezos (founder of Amazon.com an
online retail shop), Sam Walton (founder of Wal-Mart) Anita Roddick (founder
of The Body Shop), and Ingvar Kamprad (founder of the Swedish-based home
furnishing retailer chain IKEA).

1.12 The SERVQUAL Model:


A customer will be satisfied only when his/her expectations will be met, so in the year
1988 Parasuraman‘s et al developed a model to measure the expectation towards any
service, which is named as a SERVQUAL model. In the context of retail service the
model is based on following five dimensions:-

1. Reliability dimension is concerned with the store‘s ability to perform the service
accurately and dependably.

2. Responsiveness dimension is related with the employees‘ willingness to help


customers and provide prompt services.

3. Assurance dimension includes Employees‘ knowledge, courtesy and their ability


to inspire trust and confidence.

23
4. Empathy dimension is related with Caring, individualized attention given to
customers or the ease of access, approachability and effort taken to understand
customers‘ requirements.

5. Tangibles dimension is all about the appearance of the physical facilities and
material relayed at retail outlet.

The difference between the customer‘s expectation & satisfactions helps retailer to
improve the service which enhances the customers‘ satisfaction.

24
Chapter - 2
Company Profile

25
2.0 Company Profile
From the above examples of entrepreneurial opportunities I would like to discuss
more in detail about those companies which have been achieving more and more
growth in retailing sector. Retailers like Big Bazaar, Reliance Mart, D-Mart, V-mart,
Hyper City, More Mega Store and all are the foundation of the Indian Retail Sector.
Here I taken the details of Big Bazaar, D-mart and Hyper City retail store.

2.1 Big Bazaar


Kishore Biyani the founder of Future Group. Kishore Biyani, born in a middle class
marvadi trading family, was not satisfied with family business. While in college, he
noticed one of his fashion conscious friend wearing trousers made out of a new fabric
called ‗stonewash‘ fabric, which looked fashionable simply because it was different.
This gave him an idea and he started selling stonewash fabric to small shop in
Mumbai. It was a big success and he made his first profit. Thereafter, nothing could
stop his entrepreneurial instincts and he ventured to redefine the retailing business in
India with the launch of Pantaloons, Big Bazaar, Food Bazaar, Central, E-zone, Home
Town, and many more retail formats.

Kishore Biyani – Founder of Future Group

Big Bazaar is the largest hypermarket chain in India. Big Bazaar was launched in
September, 2001. With opening of its first four stores in Kolkata, Indore, Bangalore,
and Hyderabad in 22 days. Currently, there are 214 stores across 90 cities and town in
India covering around 16 million sq. ft. of retail space. Big bazaar was launched
mainly as a fashion format selling apparel, cosmetics, accessories and general
merchandise. Over the years, the retail chain has included in its portfolio a wide range
of products and services, ranging from grocery to electronics.

26
For the last 14 years Big Bazaar is the brand associated with value for money and
convenience. Big Bazaar wanted to bring affordability, variety, and hygiene within
the reach of the common man. The Big Bazaar growth story is an ideal example of the
expansion of the hypermarket format in the Indian subcontinent.

2.1.1 Big Bazaar Management


The headquarter of Big Bazaar is at Mumbai, Maharashtra, India. The Big
Bazaar is managing and own by the Future Group.
Name Position
Kishore Biyani Group CEO, Future Group
Rakesh Biyani Whole Time Director, Future Group
Anil Biyani Director, Future Group
Sunil Biyani Director, Future Group
Vijay Biyani Director, Future Group
Ms. Bala Deshpande Board of Director
Mr. Anil Harish Board of Director
Mr. Ved Prakash Arya Board of Director
Dr. Darlie Koshy Board of Director
NGS & Company Statutory Auditors

2.1.2 Schemes and Innovations


Name of the Schemes Photographs
Wednesday Bazaar
The concept of Wednesday Bazaar was promoted as
'Hafte Ka Sabse Sasta Din' (Cheapest Day of the
Week). Initiated in January 2007, the idea behind this
scheme was to draw customers to stores on
Wednesdays, the day when consumer presence is
usually less. According to the chain, the aim of the
concept was 'to give homemakers the power to save
the most.'
Maha Bachat
The concept of 'Maha Bachat' (Mega Saving) was
introduced in the year 2006 as a single day campaign
with promotional offers across the company outlets.
Over the years, the concept has grown to become a
six-day biannual campaign. During the campaign,
offers are given in all the value formats including Big
Bazaar, Food Bazaar, Electronic Bazaar, Furniture
Bazaar, Fashion bazaar.
The Great Exchange Offer
Introduced on 12 February 2009, 'The Great
Exchange Offer' allows customers to exchange their
old goods for Big Bazaar coupons. The coupons can
be redeemed later for buying brand new goods from
Big Bazaar outlets across the nation.

27
2.2 D-Mart
D-Mart is a chain of hypermarket and supermarkets in India started by R K Damani.
As of 2016, it has 98 stores spread across Maharashtra, Gujarat, Telangana, Andhra
Pradesh, Madhya Pradesh and Karnataka, and a recent purchase of property in
Rajkot[2]shows that it is well advancing towards expanding across India.

Avenue Supermarts Ltd (ASL) owns and operates hypermarkets and supermarkets
by the store name D-Mart. D-Mart seeks to be a one-stop shopping destination for the
entire family, meeting all their daily household needs. A wide selection of home
utility products is offered, including foods, toiletries, beauty products, garments,
kitchenware, bed and bath linen, home appliances and much more.

Since D-Mart first opened its doors in the Mumbai region in 2000, it has grown into a
trusted and well-established shopping destination in Maharashtra, Gujarat, Andhra
Pradesh, Madhya Pradesh, Karnataka, Telangana and Chhattisgarh D-Mart is now
looking forward to growing its stores across India.

R K Damani – Founder of D-mart

While Future clocked a turnover of Rs 14,201 crore in the last financial year, Reliance
did Rs 10,800 crore, recording a cash break-even. But if Reliance operates with over
1,450 stores and Future runs over 1,000 stores, D-mart, on the other hand, operates
just 65 stores in Maharashtra and Gujarat and one each in Hyderabad and Bangalore.
Its sales per store, then, is the highest among grocery chains at Rs 53 crore (Reliance
makes about Rs 7.45 crore per store.) The 13-year-old D-Mart, founded by the
stock-market icon, R K Damari, is not only profitable (making around 2.5 per cent of

28
sales), but most of its stores are in the black too, says a company executive, who did
not wish to be quoted to maintain the chain's low profile.

Larger chains point out that its practices are not commercially viable on a bigger
scale. "It is not possible for bigger chains to own stores as it requires huge capital
expenditure. A smaller chain can still afford to do so," says a top executive from Tata
Group's Trent, which runs Westside and Star Bazaar. Not just by way of foot-print, D-
Mart extracts a few brownie points even from its suppliers. It pays them within 48
hours of delivery, and they, in turn, allow for an additional 2-3 per cent gross margin
to the chain, enabling it to keep the prices low at most of its location.

Organised retailers often buy goods on credit from suppliers on 30-60-days credit. A
senior executive in Kishore Biryani‘s Future Retail says a short credit cycle cannot be
adopted by large retail chains as credit plays an indispensable role in generating return
on capital for large volumes as theirs. "It responds very quickly to vendors. A lot of
suppliers say D-Mart listens to them. For example, it initiates promotions within a few
days," comments by Bade.

Bade also attributes its popularity to its understanding of the consumer in the locality
it opens shop in. He points out the "good mix" of national products and local products
even in towns such as Kolhapur and Single in Maharashtra. "In areas where rice
consumption is high, they stock a large variety of rice," he says. Given its size, D-
Mart has been able to remain nimble-footed in financials too. It has not taken on a lot
of debt, unlike its bigger peers and has cut advertising budgets by 30-40 per cent in
the last couple of years to save costs. Its debt to equity ratio is 0.65.

But the real challenge for the brand will surface now that it is hoping to expand to
more cities in Karnataka and Andre Pradesh. "It is difficult to expand. It is difficult to
find stores which match our expectations," says the D-Mart executive, explaining why
it has just one store in Bangalore. The Reliance Retail executive says, "Its first phase
(of growth) has been successful. Replicating it in the next phases will be the
challenge. When you are a regional player, you will run a people-driven business. But
when you go national, you have to have fool proof and strong processes." For D-Mart,
its task will be cut out - of retaining its advantages even as it builds scale.

29
2.3 Hyper City

Founded in 2006, Hyper City Retail (India) Ltd. is part of the K. Raheja Corp. Group,
a leader in the Indian retail sector. K. Raheja Corp helped create modern retailing in
India with the Shopper's Stop, Inorbit Mall and Crossword chains in addition to its
successes in realty and hospitality. Hyper CITY provides an international shopping
experience, where customers can shop in comfort in a large, modern, & exciting
environment. With the widest range of products sourced from around the world,
Hyper CITY is India's favourite Hypermarket.

Hyper City opened its first store in Malad, Mumbai. Today, Hyper City has opened a
total of 17 stores since the company's founding and has established a presence in
citiesincluding Hyderabad, Bangalore, Jaipur, Amritsar, Bhopal, NaviMumbai, Ahme
dabad, Vadodara and Pune New Delhi.

C.L. Raheja – Chairman of K.Raheja Corp.

2.3.1 Mission and Vision


To Be An Integral Part Of Customer Lives, By Offering Them High Quality
Shopping Experience Through Great Products At Ever Better Prices.

30
2.3.2 Hyper – City Management
The headquarter of Hyper-city is at Mumbai, Maharashtra, India.

Name Position
Mr. Ramesh Menon Group CEO, Future Group
Yogesh Bisht Vice President
Mr. B.S. Nagesh Board of Director
Mr. Ravi C. Raheja Board of Director
Mr. Neel Raheja Board of Director
Ms. Ameesha Prabhu Board of Director

2.3.3 Schemes and Innovations


Name of the Schemes Photographs
Bachat Budhwar
The concept of Bachat Budhwar was promoted as
'Mid-week savings on daily needs'. Initiated in 2015,
the idea behind this scheme was to draw customers to
stores on Wednesdays, the day when consumer
presence is usually less. Shop on Wednesday, get
double discovery points.

31
Chapter - 3
Review of Literatures

32
3.0 Review of Literatures

Dr. Jay Prakash Verma (2015) found that in Consumer Behaviour for Organized
Retail: A Case Study of Big Bazaar, rise in income of the consumers along with the
effect of modern culture the purchasing power of the people has increased. Shopping
has become more and entertainment than a utility aspect for people. It also reflects
that occupation and income of the consumers has greater impact on the frequent visit
of them to organized retail outlets like big bazaar. Apart from store ambience features
like service, cost and availability of products drag the interest of the consumers that
induce the preference to shop at big bazaar. Since Indian retail market is increasing
continuously, people are purchasing goods as there is increase of income of common
people as well as change in taste for preference and lifestyle of consumers. It is
important for the retail players to be able to understand the different factors affecting
the extent in impulse buying behaviour.

Prof Vineeta Gangal (2013) conclude that (in Big Bazaar: A Study of Consumer
Behaviour towards Organized Retail) Big Bazaar is preferred by its patrons for its
pricing strategies followed by variety. One of the major reasons for this is the high
proportion of students and youngsters who are dependent on their parents for their
incomes. Big Bazaar and their close competitors would be maintaining status quo on
pricing and increase variety of products, especially in the clothing and food & grocery
department, because that is where the highest amount of sales is happening.‖

Dharmesh Motwani. (2013) conclude that (in An Empirical Study of Customer


Expectation and Perception in Organized Retail sector) Service quality is an important
aspect for retailers to know about customers‘ satisfaction & SERVQUAL model is the
root way to measure the effectiveness of service quality. In this paper gap has been
identified between expectation & perception of customers towards the organized retail
outlets of Udaipur, which revealed dissatisfaction among customers.

33
Dr. Girish K. Nair & Harish K. Nair (2013) conclude that ―the customer perception
of retail service quality is an important segment to the emerging and the existing
retailers in the market. As the study reveals that perception of service quality is
influenced by the various natures among various customers, even some of the general
factors like Personal interaction, physical aspects are the dimensions on which
customer perception remains constant and common to the entire customer on a
majority basis. So the retail outlets have to frame their own strategies in order to
attract the customers on a longer basis.‖

William & Prabakar (2012) concluded that ―The customer perception of retail
service quality is an important segment to the emerging and the existing retailers in
the market as the study reveals that perception of service quality influenced by the
various nature with various customers even some of the general factors like Personal
interaction, physical aspects are the dimensions of the customer perception remains
constant and common to all the customer on a majority basis so the retail outlets have
to frame their own strategies In order to attract the customers on a longer basis‖

Kumar.R & Barani (2012) said that ―service quality has long been accepted as the
most basic marketing tool for retailers to differentiate their retail offers, create
competitive advantage and to enhance the customers‘ shopping experience.
Nonetheless, maintaining excellent service quality within the stores is no simple task‖

U. Dineshkumar, P.Vikkraman (2012) found in their study that ―organized retail


outlets provide better quality of service, product range as compared to the
unorganized retail outlets. Most of the customers are satisfied with the quality of
service provided by the organized retail outlets.‖

Prof Sudhansu sekhar & Dr.sarat kumar sahoo (2009) in the study ―Organized
retailing in India: issues & challenges‖‘ identified mainly the challenging factors like
technology, supply chain, human resources, store positioning.

34
Kumar and Sarkar (2006) in their research pointed out that emerging organized
retailing will face stiff challenges from traditional retailing or unorganized retailing –
a sector which is deep rooted in India. Traditional retailing has got relatively low cost
structures, mostly owner operated, has negligible real estate and labor costs and little
or no taxes. According to them distributors will no longer be rewarded just on the
basis of how much they sell. Instead, their compensation will depend on the width of
the merchandise stocked and more importantly their prominence on the supermarket/
hypermarket shelves.

Majumdar (2005) in his study on customer loyalty in shopping malls found that mall
accessibility and mall ambience have a significant influence on mall loyalty. He also
established that mall loyalty, value perception (price-quality) and overall store
impressions are found to be significant predictors of store loyalty. He stated that if the
customers are not satisfied with the shopping malls as such, their loyalty to a
particular store will decline and therefore suggested that it is essential for the mall
managers to see that sound strategies are implemented to maintain a satisfactory level
of patronage and loyalty.

Parasuraman (1990) in his study on superior customer service and marketing


excellence discussed the meaning and measurement of service quality and offered
managerial guidelines for delivering superior service by invoking key insights from a
multi-year, multi sector stream of research on customer service. He developed a
model called SERQUAL, which consisted of five dimensions like reliability,
responsiveness, assurance, empathy and tangibles. He concluded that reliability to be
the most important of the five SERQUAL dimensions. He also concluded that a
company should effectively blend external marketing with customer service to deliver
superior service to customers.

35
Chapter - 4
Research Methodology

36
4.0 Research Methodology
The research methodology mainly includes the following points:

4.1 Rationale of the Research Study


The Research study focused on Consumer’s Satisfaction of the organized retail
outlets. The study would be attempted to explore and describe the Service
Quality Dimensions which derives the Consumer‘s Satisfactions.

4.2 Objectives of the Study

 To know the level of consumer satisfaction with services quality


dimensions.

 To study the demographic profile of the organized retail store consumers.

 To understand the factors influencing the shoppers buying at the organized


retailers.

 To study the promotional activities taken by the organized retailers.

 To provide suggestions to improve the services provided by the organized


retailers.

4.3 Sources of Information:

The research was made by use of both Primary Data as well as Secondary
Data sources of information the case may be.

4.3.1 Primary Data:

The primary data were collected from the consumers of the selected
retail stores.

37
4.3.2 Secondary Data:

The secondary data were collected from publishing by search engine,


newspapers, books, magazines, journals, websites and other relevant
information.

4.4 Research Instrument:

The researcher was put to use structured non-disguised questionnaire to get the
responses from the consumers of selected retail stores.

4.5 Sampling decisions:

4.5.1 Representative Sample:

The primary data from the consumers who used services by retail
stores have been collected and HE and/or SHE has been regarded as a
representative sample unit in this research study.

4.5.2 Sample Frame:

The representative sampling unit in appropriate and justified size has


been conveniently drawn from different customer across various age-
groups, occupation, education, gender and income from the selected
respondents.

4.5.3 Sample Size:

The total number of consumers available for the purpose of the study
was 120 representative samples.

4.5.4 Sample Design & Methods:

Non-probability sampling design based on convenient sampling


method was used for the research study.

4.5.5 Sample Media:

The Sample media used is personal interview for Filling up the


Questionnaire.

38
4.6 Significance of the Research Study
The significance of the study is to know the different Strategies for the
satisfying consumers of the retail stores. This helps in to understanding
various features of the retail stores.

4.7 Limitations of the Research Study

4.7.1 Assessment of data:


As the case of a being a student there was a limited knowledge and
approach towards analytic research tools and techniques.

4.7.2 Time constraints:


The project has been undertaken only for three months (February 2015
to April 2015) which may not be sufficient in order to get accurate
results.

4.7.3 Limited scope:

The area which was been taken into consideration for the study is
restricted only to residents of Vadodara city and limited number of
respondents and Lake of interest of respondents.
4.7.4 Cost constraint:
The cost involved in doing the project was high and as a student
resource was limited.

39
Chapter - 5
Data Analysis and
Interpretation

40
5.0 Data Analysis and Interpretation
5.1 Demographic Information
Q.1 Gender
Male Female
Big Bazaar 18 22
D – Mart 25 15
Hyper – City 21 19
Total 64 56

70

60

50

40
Male
30
Female
20

10

0
Big Bazaar D – Mart Hyper – City Total

Interpretation:
Out of total 120 respondents there are 64 respondents are Male and rest of the 56 are Female.
From the total male respondents 18 are from Big Bazaar, 25 are from D – Mart and 21 are
from Hyper – City. From the total female 22 are from Big Bazaar, 15 are from D – Mart and
rest of 19 are from Hyper – City.

41
Q.2 Age Group:
15 – 25 25 – 35 35 – 45 45 & Above
Big Bazaar 15 14 7 4
D – Mart 18 14 5 3
Hyper – City 16 13 6 5
Total 49 41 18 12

60

50

40
Big Bazaar
30 D – Mart
Hyper – City
20
Total
10

0
15 – 25 25 – 35 35 – 45 45 & Above

Interpretation:
Out of total respondents 49 respondents are comes from 15 – 25 years. 41 respondents are
from 25 – 35, 18 respondents are from 35 – 45 and rest of the 12 respondents are from 45
years and above.

42
Q.3 Marital Status:
Married Unmarried
Big Bazaar 28 12
D – Mart 20 20
Hyper – City 21 19
Total 69 51

80

70

60

50

40 Married
30 Unmarried

20

10

0
Big Bazaar D – Mart Hyper – City Total

Interpretation:
From the total respondents 69 respondents are married and rest of the 51 respondents are
unmarried.

43
Q.4 Occupation:
Students Housewives Self – employed Salaried
Big Bazaar 10 12 9 9
D – Mart 15 8 10 7
Hyper – City 13 5 12 10
Total 38 25 31 26

40

35

30

25
Big Bazaar
20
D – Mart
15
Hyper – City
10 Total
5

0
Students Housewives Self – Salaried
employed

Interpretation:
From the total 120 respondents 38 respondents are students, 25 are housewives, 31 are self-
employed and rest of the 26 are salaried.

44
Q.5 Average Annual Family Income:
Up to 1 Lac 1 to 2 Lac 2 to 3 Lac 3 to 4 Lac 4 Lac & Above
Big Bazaar 2 5 12 12 9
D – Mart 4 9 10 12 5
Hyper – City 9 8 9 9 5
Total 15 22 31 33 19

35

30

25

20 Big Bazaar

15 D – Mart
Hyper – City
10
Total
5

0
Up to 1 Lac 1 to 2 Lac 2 to 3 Lac 3 to 4 Lac 4 Lac &
Above

Interpretation:
From the total 120 respondents 15 respondents are earning less than Rs. 1 Lac, 22
respondents are earning Rs. 1 Lac to 2 Lac, 31 respondents have their annual income in Rs. 2
Lac to 3 Lac. Out of total respondents 33 respondents are come in between Rs. 3 Lac to 4 Lac
and rest of the 19 respondents are earning 4 Lac and above annual income.

45
Q.6 Average Monthly Purchase from Organized Retail Store:
Less than Rs. 1001 to Rs. 2001 to Rs. 3001 to More than
1000 2000 3000 4000 Rs. 4000
Big Bazaar 5 9 9 9 8
D – Mart 5 10 10 11 4
Hyper – City 6 8 12 10 4
Total 16 27 31 30 16

35

30

25

20 Big Bazaar

15 D – Mart
Hyper – City
10
Total
5

0
Less than Rs. 1001 to Rs. 2001 to Rs. 3001 to More than
1000 2000 3000 4000 Rs. 4000

Interpretation:
From the 120 respondents 16 respondents are purchasing less than Rs. 1000, 27 respondents
are spending Rs. 1001 to 2000, 31 respondents are come in criteria of Rs. 2001 to 3000, 30
respondents are spending Rs. 3001 to 4000 and 16 respondents are spending highest amount
of Rs. 4000 and above.

46
Q.7 How Many Times You Visit the Store?
Once Twice Three Four As per Requirement
Big Bazaar 8 5 3 7 17
D – Mart 7 4 4 8 17
Hyper – City 6 4 7 3 20
Total 21 13 14 18 54

60
50
40
30
Big Bazaar
20
D – Mart
10
Hyper – City
0
Total

Interpretation:
From the 120 respondents 21 respondents are going for shopping only one time in a month.
Only 13 respondents are going only two times in a month, 18 respondents are visiting the
store four times in a month. And highest 54 respondents are visiting the store as per their
requirements.

47
5.2 Satisfaction Based Statements (Five Dimensions)
This part included the analysis on the basis of five dimensions of the service
quality i.e. tangibility, reliability, responsiveness, assurance, and last one is
empathy.

The degree of satisfaction towards selected organized retail outlets was set
from 1 to 5 ranks. (5 denotes the highest satisfaction, whereas, 1 is the lowest
satisfaction).

In addition following criteria is used for analysis part:-


 The score among 1.00-1.80 mean lowest satisfaction.
 The score among 1.81-2.61 mean low satisfaction.
 The score among 2.62-3.41 mean average satisfaction.
 The score among 3.42-4.21 mean high satisfaction.
 The score among 4.22-5.00 mean highest satisfaction.

48
Q.1 Customer‘s satisfaction towards Reliability Dimension
Mean Scores
Big Bazaar D – Mart Hyper – City
(1) This store provides 3.80 3.90 3.52
services as promised.
(2) This store has the 3.83 3.72 3.45
merchandise available
when customer wants it.
(3) This store has batter 3.15 3.35 3.42
& fast billing system.
(4) This store provides 3.60 3.37 3.32
services at right time.

4.5
4
3.5
3
2.5 Mean Scores Big Bazaar
2 Mean Scores D – Mart
1.5 Mean Scores Hyper – City
1
0.5
0
1 2 3 4

Interpretation:
From the above information we can say that the D – Mart is providing best services to their
customers than next come Big Bazaar. In merchandise availability Big Bazaar is comes first
than second is D – Mart. But in billing services the Hyper – City is providing best services as
compare to other two stores. Big Bazaar provides services at right time when customers want
it. Overall comparing the table we can say the Big Bazaar is more satisfying their customers.

49
Q.2 Customer‘s satisfaction towards Responsiveness Dimension
Mean Scores
Big Bazaar D – Mart Hyper – City
(1) Employees of the store
are willing to help you 3.37 3.70 3.42
every time.
(2) Employees of the store
are able to handle customer 3.25 3.35 3.42
complaints directly and
immediately.
(3) Employees of the store
give correct information 3.47 3.85 3.17
when services provided.
(4) Employees of the store
give prompt services. 3.32 3.37 3.30

4.5
4
3.5
3
2.5 Mean Scores Big Bazaar
2 Mean Scores D – Mart
1.5 Mean Scores Hyper – City
1
0.5
0
1 2 3 4

Interpretation:

From the above information we can say that the D – Mart is providing best services in the
first statement. Employees of the Hyper – City store are able to handle customer complaints
directly and immediately, the mean score is highest 3.42 as compare to another two stores.
Employees of the D – Mart store give correct information when services provided, the mean
score is 3.85 of that, secondly comes Big Bazaar in this statement. If we say on overall
responsiveness dimension the D – Mart store is providing best services, out of four times the
mean score is highest three times.

50
Q.3 Customer‘s satisfaction towards Assurance Dimension
Mean Scores
Big Bazaar D – Mart Hyper – City
(1) Employees of the store
are well qualified and 3.57 3.55 3.52
perform the jobs
accurately.
(2) Employees of the store
are trustworthy 3.30 3.32 3.37
(3) Employees of the store
have sufficient product 3.52 3.60 3.42
knowledge.
(4) Employees of the store
are courteous with 3.45 3.62 3.40
customers.

3.7

3.6

3.5

Mean Scores Big Bazaar


3.4
Mean Scores D – Mart
3.3 Mean Scores Hyper – City

3.2

3.1
1 2 3 4

Interpretation:

From the above information Employees of the Big Bazaar store are well qualified and
perform the jobs accurately but the gap between mean score is minor as compare to others.
Hyper – City store has more trustworthy employees as compare to other two stores, mean
score is 3.37 of Hyper – City. On the third statement D – Mart is comes first with 3.60 mean
score. Employees of the D – Mart store are courteous with customers with 3.62 mean score
secondly Big Bazaar and last Hyper – City.

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Q.4 Customer‘s satisfaction towards Empathy Dimension
Mean Scores
Big Bazaar D – Mart Hyper – City
(1) The store has Provide
the operating hours 4.10 4.20 3.95
convenient to all their
customers.
(2) Employees of the store
give personal attention to 3.42 3.72 3.72
customers.
(3) Employees of the store
understand the need of the 3.72 3.82 3.62
customers.

4.5
4
3.5
3
2.5 Mean Scores Big Bazaar
2 Mean Scores D – Mart
1.5 Mean Scores Hyper – City
1
0.5
0
1 2 3

Interpretation:

Above table shows that the convenient operating hours are providing is highest by D – Mart
with mean score 4.20 secondly with 4.10 mean score comes Big Bazaar. D – Mart gives
personal attention to the customers with mean score 3.72 as a same Hyper – City is also
giving same attention to the customers. At third statement D – Mart comes first with mean
score 3.82 secondly Big Bazaar. Hyper – City needs to improve the Employees by train them.

52
Q.5 Customer‘s satisfaction towards Tangible Dimension
Mean Scores
Big Bazaar D – Mart Hyper – City
(1) Physical facilities are
sufficient. 3.85 3.87 3.85
(rest room, trial room)
(2) The store has
convenient parking for 3.60 3.15 3.62
customers.
(3) The store is clean and 3.87 3.35 3.87
hygiene.
(4) Location of the store is 3.95 3.90 4.20
convenient.
(5) This store has modern 3.90 3.50 3.77
equipment & fixtures.
(6) This store has sufficient
moving place. 3.97 3.70 4.05
(with Trolley)

4.5
4
3.5
3
2.5 Mean Scores Big Bazaar
2 Mean Scores D – Mart
1.5 Mean Scores Hyper – City
1
0.5
0
1 2 3 4 5 6

Interpretation:

As per the respondents answers the physical facilities are sufficient as all three stores, the
mean scores are more or less same the difference is only 0.02. For parking facility Hyper –
City has a good facility as compare to D – Mart, Big Bazaar and Hyper – City has a minor
difference in their mean scores. For clean and hygiene statement Big Bazaar and Hyper –
City has same mean scores, D – Mart wants to improve the cleanliness and hygiene. For
moving space the Hyper – City has a good space to move with trolley, mean score is 4.05. D
– Mart wants to improve the space management because the mean score is so low 3.70 as
compare to other two mean scores.

53
5.3 Factors influencing to the Customers
Mean Scores
Big Bazaar D – Mart Hyper – City
(1) I think the quality of the
product is good. 4.00 3.95 4.01
(2) Brands & Products are
available in the store. 3.90 3.60 3.95
(3) Product display &
signage in the store is 4.05 3.70 3.99
good.
(4) Discounts & offers are 4.07 3.97 3.90
available on products.
(5) The shopping 4.20 4.05 4.02
experience is good at store.

4.3
4.2
4.1
4
3.9
Mean Scores Big Bazaar
3.8
Mean Scores D – Mart
3.7
Mean Scores Hyper – City
3.6
3.5
3.4
3.3
1 2 3 4 5

Interpretation:

From the above table we can say the customers are shopping from organized retail stores just
because of better quality of the products. The mean score is more or less same for the quality
of the products. In second statement D – Mart wants to increase the brands and products for
better satisfaction. Again Product display and signage in the store is not good in D – Mart, the
mean score is so low 3.70 as compare to other two stores. If we talk of discounts and offers
the Big Bazaar is providing good offers and discounts with the mean score 4.07 which is
highest. The overall experience is good in Big Bazaar store with mean score 4.20; lastly
comes Hyper – City with 4.02 mean score.

54
5.4 Promotional activities based Questions
Q.1 Does the promotional schemes effects on your buying behaviour?
Yes No
Big Bazaar 33 7
D – Mart 34 6
Hyper – City 36 4
Total 103 17

120

100

80

60 Yes
No
40

20

0
Big Bazaar D – Mart Hyper – City Total

Interpretation:

Above table shows most of the respondents are affecting by promotional schemes. Out of 120
respondents 103 respondents are saying yes in this question and rest of the 17 are saying no
to this question.

55
Q.2 Which promotional schemes you like?
Buy Products Free coupons Discounts on Exchange
& Get Free & vouchers products offers
Big Bazaar 12 13 9 6
D – Mart 15 10 8 7
Hyper – City 13 12 6 9
Total 40 35 23 22

45
40
35
30
25 Buy Products & Get Free
20 Free coupons & vouchers
15 Discounts on products
10 Exchange offers
5
0
Big Bazaar D – Mart Hyper – Total
City

Interpretation:

Above information tell us that most of the customers want free products, out of the total 120
respondents 40 respondents are saying this. Second are free vouchers and coupons with 35
respondents out of total respondents. Total 23 respondents are wishing discounts on products
and at last 22 respondents are come from exchange offers scheme.

56
Q.3 How you know about promotional schemes?
From Friends From Hoardings From TV From Sales persons
Big Bazaar 16 10 11 3
D – Mart 15 9 12 4
Hyper – City 17 8 10 5
Total 48 27 33 12

60

50

40
Big Bazaar
30
D – Mart
20 Hyper – City
Total
10

0
From Friends From From TV From Sales
Hoardings persons

Interpretation:

Highest 48 respondents are known the promotional schemes from their friends and relatives.
27 respondents are known by the hoardings. From TV commercials only 33 respondents are
aware about the schemes and only 12 respondents are aware about schemes by sales person.
Stores want to improve the sales person for promotional schemes awareness.

57
5.5 Hypothesis Testing
Hypothesis – I
H0 = There is no significant relation between gender and frequency of visit.
Gender of the Respondents
Frequency of Visit Male Female Total
Once 10 11 21
Twice 7 6 13
Three 8 6 14
Four 9 9 18
As per Requirement 30 24 54
Total 64 56 120

35
30
25
20
15
10 Male
5 Female
0

Test Statistics Details:


Value of Chi – square test statistics = 0.685
Table value is 9.488
Decision: we accept Null Hypothesis (H0) at 5% Level of Significance.
Comment: There is no significant relation between gender and frequency of visit.

58
Hypothesis – II
H0 = There is no significant relation between age and frequency of visit.
Age Groups
Frequency of Visit 15 – 25 25 – 35 35 – 45 45 &
Years Years Years Above Total
Once 7 8 5 1 21
Twice 10 0 2 1 13
Three 4 5 3 2 14
Four 6 5 4 3 18
As per Requirement 22 23 4 5 54
Total 49 41 18 12 120

25

20

15

10 15 – 25 Years
25 – 35 Years
5
35 – 45 Years
0
45 & Above

Test Statistics Details:


Value of Chi – square test statistics = 17.73
Table value is 21.0
Decision: we accept Null Hypothesis (H0) at 5% Level of Significance.
Comment: There is no significant relation between age and frequency of visit.

59
Hypothesis – III
H0 = There is no significant relation between marital status and frequency of visit.
Marital Status
Frequency of Visit Married Unmarried Total
Once 9 12 21
Twice 7 6 13
Three 7 7 14
Four 10 8 18
As per Requirement 36 18 54
Total 69 51 120

40
35
30
25
20
15
10 Married
5 Unmarried
0

Test Statistics Details:


Value of Chi – square test statistics = 4.169
Table value is 9.49
Decision: we accept Null Hypothesis (H0) at 5% Level of Significance.
Comment: There is no significant relation between marital status and frequency of visit.

60
Hypothesis – IV
H0 = There is no significant relation between occupation and frequency of visit.
Occupation
Frequency of Visit Students Housewives Self-employed Salaried Total
Once 8 7 3 3 21
Twice 7 3 2 1 13
Three 9 1 2 2 14
Four 5 4 4 5 18
As per Requirement 9 10 20 15 54
Total 38 25 31 26 120

25

20

15

10 Students
Housewives
5
Self-employed
0
Salaried

Test Statistics Details:


Value of Chi – square test statistics = 25.68
Table value is 21.0
Decision: we reject Null Hypothesis (H0) at 5% Level of Significance.
Comment: There is a significant relation between occupation and frequency of visit.

61
Hypothesis – V
H0 = There is no significant relation between annual income and frequency of visit.
Average Annual Income
Frequency Up to Rs. 1 Lac to Rs. 2 Lac to Rs. 3 Lac to Rs. 4 Lac & Total
of visit Rs. 1 Lac 2 Lac 3 Lac 4 Lac Above
Once 0 5 7 9 0 21
Twice 2 3 3 2 3 13
Three 3 2 4 3 2 14
Four 6 3 0 7 2 18
As per 4 9 17 12 12 54
Requirement
Total 15 22 31 33 19 120

18
16
14
12
Once
10
Twice
8
Three
6
Four
4
As per Requirement
2
0
Up to Rs. Rs. 1 Lac Rs. 2 Lac Rs. 3 Lac Rs. 4 Lac
1 Lac to 2 Lac to 3 Lac to 4 Lac & Above

Test Statistics Details:


Value of Chi – square test statistics = 28.52
Table value is 26.3
Decision: we reject Null Hypothesis (H0) at 5% Level of Significance.
Comment: There is a significant relation between annual income and frequency of visit.

62
Hypothesis – VI
H0 = There is no significant relation between monthly purchase and frequency of visit.
Average Monthly Purchase
Frequency Less than Rs. 1001 to Rs. 2001 to Rs. 3001 to More than Total
of visit Rs. 1000 Rs. 2000 Rs. 3000 Rs. 4000 Rs. 4001
Once 2 4 6 5 4 21
Twice 1 5 1 4 2 13
Three 3 3 2 6 0 14
Four 2 4 9 3 0 18
As per 8 11 13 12 10 54
Requirement
Total 16 27 31 30 16 120

14

12

10

8 Once
Twice
6
Three
4
Four
2
As per Requirement
0
Less than Rs. 1001 Rs. 2001 Rs. 3001 More
Rs. 1000 to 2000 to 3000 to 4000 than Rs.
4001

Test Statistics Details:


Value of Chi – square test statistics = 13.29
Table value is 26.3
Decision: we accept Null Hypothesis (H0) at 5% Level of Significance.
Comment: There is no significant relation between average monthly purchase and frequency
of visit.

63
Chapter - 6
Findings, Suggestions and
Conclusion

64
6.0 Findings, Suggestions and Conclusion
―Consumers‖ are the Heart of Any Organizations. Hence when we talk about
Consumers, we need to satisfy their needs and wants. The consumer‘s satisfaction is
the parameter to measure the performance of the Organizations. So, here the
researcher finds the satisfaction level of the selected organized retail stores of the
Baroda.

6.1 Findings
6.1.1 By the demographic questions researcher found that,
 Out of 120 respondents there were 64 (53%) respondents are male and
rest of the 56 (47%) respondents are female.
 The respondents are come from all age group. That means 15 years to
55 years and above.
 Researcher has taken both the marital status like married and
unmarried and the numbers of that is 69 (57%) and 51 (43%)
respectively.
 In occupation researcher has taken all majority types like students,
housewives, self-employed and salaried. The numbers of respondents
are 38 (31%), 25 (21%), 31 (26%) and 26 (22%) respectively.
 When we talk about annual income the researcher covers all major
income groups like less than 1 Lac to above 4 Lac per annum.
 The researcher has taken the average monthly purchase from organized
retail store is like less than 1000 rupees to more than 4000 rupees per
month and the outcomes is most of the respondents are spending 2000
rupees to 4000 rupees per month.
 Out of 120 respondents 21 (17%) respondents are going for shopping
only one time in a month. Only 13 (11%) respondents are going only
two times in a month, 18 (15%) respondents are visiting the store four
times in a month. 54 (45%) respondents visiting the store as per their
requirement.

65
6.1.2 By the satisfaction based statements researcher found that,
 For the ―Reliability‖ dimension, majority times Big Bazaar has more
mean score as compare to other two stores. The highest mean score of
Big Bazaar is 3.80 in services provide but D – Mart has 3.90 mean
score for same. Hyper – City has better and fast billing system and the
mean score is 3.42 which is highest as compare to other two stores.
 For the ―Responsiveness‖ dimension, majority times D – Mart has
more mean score as compare to other two stores. The highest mean
score of D – Mart is 3.70 in employees are willing to help to the
consumers. But in handle consumers complain Hyper – City has better
employees and the mean score is 3.42 which are highest as compare to
other two stores.
 In the third ―Assurance‖ dimension Big Bazaar‘s employees of the
store are well qualified and perform the jobs accurately with the mean
score 3.57. Most trustworthy employees are belonging from Hyper –
City with 3.37 mean score. The employees of D – Mart are courteous
with customers.
 The 4th dimension ―Empathy‖ saws that D – Mart provides
convenience operating hours to consumers with mean score 4.20.
While in the second statement D – mart and Hyper – City has equal
mean score 3.72 for personal attention to consumers. D – Mart
understands the need of the consumers with highest mean score 3.82.
 At the last ―Tangibility‖ dimension Big Bazaar and Hyper – city have
same mean score 3.85 for physical facilities at store, while for the same
D – Mart has 3.87 mean score. For better parking Hyper – City comes
first with 3.62 mean score. For cleanness and hygiene Big Bazaar and
Hyper – City have same mean score 3.87, for same D – Mart has only
3.55 mean score. For better location Hyper – City comes first with 4.20
mean score. For better moving place (with trolley) Hyper – City has
good space.

66
6.1.3 By the questions of factors influencing to consumers researcher
found that,
 For the quality of the products more or less all the stores are at same
level with mean score 4.00, 3.95 and 4.01 for Big Bazaar, D – Mart
and Hyper – City respectively.
 Hyper – City provides better brands and products as compare to two
other stores with highest mean score 3.95.
 Big Bazaar has better system for product display and signage of the
products. The mean score is 4.05 of the store.
 Best discounts and offers are providing by Big Bazaar, with 4.07 mean
score.
 Big Bazaar consumers are feel overall shopping experience is good
because the mean score is highest 4.20, while 4.05 is for D – Mart and
4.02 is for Hyper – city.

6.1.4 By the question of promotional activities researcher found that,


 Most of all the respondent has affect the promotional schemes on their
buying behaviour. Only 17 respondents are not changing their
behaviour for promotional schemes.
 Out of 120 respondents 40 respondents want free products with
purchase. While 35 respondents want free coupons and vouchers. 23
consumers want discounts on products and rest of the 22 want
exchange offers.
 The tools of promotion 48 respondents were aware from their friends
and relatives. 27 respondents were known the schemes by hoardings.
Retail store are less using the TV commercial. Only 33 respondents are
aware by TV commercials of schemes. And from sales persons only 12
respondents were aware. Retail store also can do positive word of
mouth. It is most effective tool in promotional activities tools.

67
6.1.5 By framing the hypothesis researcher found that,
 There is no significant relation between gender and frequency of visit.
 There is no significant relation between age and frequency of visit.
 There is no significant relation between marital status and frequency of
visit.
 There is a significant relation between occupation and frequency of
visit.
 There is a significant relation between annual income and frequency of
visit.
 There is no significant relation between occupation and frequency of
visit.

6.2 Suggestions
 Retail stores should adopt the efficient inventory management system so that
customers can find the merchandise available at the time of requirement.
 Employees of retail stores should be trained to handle the customers‘
complaints effectively.
 Employees of retail stores should have sufficient knowledge about products
available in store.
 Employees of the store should try to give personal attention to customers.
 Availability of physical facilities should be improved.
 The moving place of the store should be convenient to customers.
 Retail outlets should try to perform error free services.
 Retail stores should try to provide free parking facility.
 The promotion strategies of stores require paying immediate attention to take
on the competitors with a completely new positioning.

68
6.3 Conclusion
After the thorough analysis of the available data it has been found that rise in
income of the consumers along with the effect of modern culture the
purchasing power of the people has increased. Shopping has become more and
entertainment than a utility aspect for people. It also reflects that occupation
and income of the consumers has higher impact on the frequent visit of them
to organized retail outlets.

Service quality is an important aspect for retailers to know about customers‘


satisfaction & SERVQUAL model is the root way to measure the
effectiveness of service quality. In this research study it has been identified the
satisfaction of customers towards the organized retail outlets in Baroda, which
shows that the consumers are satisfied but the retailers have to improve the
service quality.

It can be concluded that customer satisfaction is very important. Thus, though


customer satisfaction does not guarantee repurchase on the part of the
customers but still it plays a very important part in ensuring customer loyalty
and retention. Therefore, organizations should always strive to ensure that
their customers are very satisfied. And this study it is founded that the
customers are satisfied.

69
Bibliography &
Webliography

70
Bibliography & Webliography

Article References
 Dr. Jay Prakash Verma. (2015), consumer behaviour for organized retail: a
case study of big bazaar, International Journal of Interdisciplinary Research
(ISSN: 2348-6775) Vol. 2 Issue 1. Jan 2015 pp 29-33.
 Dharmesh Motwani. (2014), an empirical study of customer expectation and
perception in organised retail sector, National monthly journal of research in
commerce and management (ISSN: 2277-1166) Vol. 2 Issue 3. Jan 2013 pp
144-153.
 Prof Vinita Gangal, Dr A kumar (2013), Big Bazaar: A Study of Consumer
Behaviour towards Organized Retail, Indian Journal of Applied Research
(ISSN: 2249-555X) Vol. 3 Issue 4, April 2013 pp 336-338

 Kumar.R & Dr. G. Barani (2012), Examination of Organized Retailing Service


Quality In Attire Specialty Stores In Bangalore City, India. International
Journal of Computing and Business Research (ISSN: 2229-6166) Vol. 3 Issue
1. Jan 2012 pp 1-15.

 U. Dineshkumar, P.Vikkraman (2012), Customers‘ Satisfaction towards


Organized Retail Outlets in Erode City. IOSR Journal of Business and
Management (ISSN: 2278-487X) Volume 3, Issue 4. Oct. 2012, pp 34-40

 Dr. Girish K Nair, Harish K Nair (2013), An Analysis On Customer


Perception Towards Service Quality Variables In Selected Organized Retail
Outlets. International Journal of Management and Social Sciences Research
(ISSN: 2319-4421) Volume 2, No. 1, January 2013 pp. 56-61

71
Bibliography (Books)
 Chetan Bajaj, Rajnish Tuli and Nidhi Verma Srivastava (2010); 2nd Edition;
Retail Management; Oxford University Press; New Delhi.
 Barry Berman, Joel R. Evans (2010); 10th Edition; Retail Management;
Pearson Education.
 Kotler, Keller, Koshy and Jha (2009); 13th Edition; Marketing Management:
A South Asian Perspective; Pearson Education.

Webliography
 www.google.com
 www.bigbazaar.com
 www.dmartindia.com
 www.hypercityindia.com
 www.wikipedia.com

72
Annexure : Questionnaire

73
Annexure : Questionnaire
An analysis on Consumer Satisfaction towards Selected
Organized Retail Outlets in Baroda.
Dear Respondent,
I am studying in Post Graduate Diploma in Business Administration, from the Department of
Commerce and Business Management, Faculty of Commerce, The Maharaja Sayajirao University of
Baroda in the academic year 2015-16. As a part of my study, I am conducting a research on
“Consumer Satisfaction towards Selected Organized Retail Outlets in Baroda.”
Please provide relevant information by filling this questionnaire to make my survey more
comprehensive. This survey is for academic purpose only. Any information collected in this survey
would not be used for any personal or commercial purpose.
Looking forward for your kind co-operation and output.
Thanking you,
Yours sincerely,
Mr. Dignesh S. Panchasara

Demographic Information
Name of Respondent ______________________________________________________

1. Gender : Male Female

2. Age Group : 15 – 25 25 – 35
35 – 45 45 & Above

3. Marital Status : Married Unmarried

4. Occupation : Student Housewife


Self-employed Salaried

5. Average annual Income :


Up to 1 Lac 1 Lac to 2 Lac
2 Lac to 3 lac 3 Lac to 4 lac
4 Lac & Above
6. Average monthly Purchase at Organized retail outlet:
Less than Rs. 1000 Rs. 1001-Rs. 2000
Rs. 2001-Rs. 3000 Rs. 3001-Rs. 4000
More than Rs. 4001

7. In a month how many times you visit the Store?


Once Four
Twice As per your
Three Requirements

74
Satisfaction Based statements
Customer’s satisfaction towards Reliability Dimension
Reliability Strongly Dissatisfied Neutral Satisfied Strongly
Dissatisfied Satisfied
This store provides services as
promised.
This store has the merchandise
available when customer wants it.
This store has batter & fast billing
system.
This store provides services at right
time.

Customer’s satisfaction towards Responsiveness Dimension


Responsiveness Strongly Dissatisfied Neutral Satisfied Strongly
Dissatisfied Satisfied
Employees of the store are willing to
help you every time.
Employees of the store are able to
handle customer complaints directly
and immediately.
Employees of the store gives correct
information when services provided.
Employees of the store gives prompt
services.

Customer’s satisfaction towards Assurance Dimension


Assurance Strongly Dissatisfied Neutral Satisfied Strongly
Dissatisfied Satisfied
Employees of the store are well
qualified and perform the jobs
accurately.
Employees of the store are
trustworthy
Employees of the store have
sufficient product knowledge.
Employees of the store are courteous
with customers.

Customer’s satisfaction towards Empathy Dimension


Empathy Strongly Dissatisfied Neutral Satisfied Strongly
Dissatisfied Satisfied
The store has Provide the operating
hours convenient to all their
customers.
Employees of the store give personal
attention to customers.
Employees of the store understand
the need of the customers.

75
Customer’s satisfaction towards Tangible Dimension
Tangible Strongly Dissatisfied Neutral Satisfied Strongly
Dissatisfied Satisfied
Physical facilities are sufficient.
(rest room, trial room)
The store has convenient parking for
customers.
The store is clean and hygiene.
Location of the store is convenient.
This store has modern equipment &
fixtures.
This store has sufficient moving
place. (with Trolley)

Factors influencing to the customers


Product & Quality Strongly Dissatisfied Neutral Satisfied Strongly
Dissatisfied Satisfied
I think the quality of the product is
good.
Brands & Products are available in
the store.
Product display & signage in the
store is good.
Discounts & offers are available on
products.
The shopping experience is good at
store.

Promotional Activities Based Questions


1. Does the promotional schemes effects on your buying behaviour?
Yes No

2. Which promotional schemes you like?


Buy products and get free Discounts on product
Free coupons & vouchers Exchange offers

3. How you know about promotional schemes?


From Friends From Hoardings
From TV commercial From Sales persons

Give any suggestions or recommendations to improving the services of the store.


___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
*Thank You*

76

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