A Comparative Study of Service

Quality of D’Mart and Apna Bazaar

Ranjith P V* and Rajesh Nair**

This study attempts to find out whether retail outlets like D’Mart and Apna
Bazaar differ in terms of service quality. Existing research indicates that
consumers are satisfied with the store’s service quality. Service quality is perceived
as a tool to increase value for the consumer; as a means of positioning in a
competitive environment to ensure consumer satisfaction, retention and
patronage. Despite its strategic importance, the Indian retailers do not have an
appropriate instrument to measure service quality. This study examines
the Retail Service Quality Scale (RSQS) developed in the US for applicability to
the Indian retail market. The data collected from 140 adult shoppers in large
supermarkets namely D’Mart and Apna Bazaar in Vashi and Nerul of Navi Mumbai
indicates that RSQS can be used to assess overall service quality levels and
for tracking overall improvements over a period of time. It is observed from
the factor analysis that there are five factors which define service quality in
the retail outlets: personal interaction, appearance, reliability, problem-solving
and policy. The study also finds the reliability of all the factors and the mean
service quality levels of D’Mart and Apna Bazaar. However, the different
dimensions of service quality are not clearly identifiable. This limits the diagnostic
application of RSQS.

Introduction
High level of external customer satisfaction largely depends on the level of internal
customer satisfaction and corresponding nature of service quality delivered by
internal customers to the external customer of any industry.

Service quality is perceived as a tool to increase value for the consumer; as a

means of positioning in a competitive environment and to ensure consumer
satisfaction retention and patronage. With greater choice and increasing
awareness, the Indian consumers are more demanding of quality service, and
players in this field can no longer afford to neglect customer service issues. A high
level of external customer satisfaction largely depends on the level of internal
customer satisfaction and corresponding nature of service quality delivered by
internal customers to external customer.

* Senior Lecturer, SI ES College of Management Studies, Mumbai, I ndia.

E-mail: ranjith_pv@rediffmail.com
** Senior Lecturer, SI ES College of Management Studies, Mumbai, I ndia.
E-mail: nairrajeshksn@gmail.com

A
© Comparative
2010 IUP. All Study
RightsofReserved.
Service Quality of D’Mart and Apna Bazaar 7
 The success of a business enterprise is guided by the strategic orientation the
organization has towards its customers, competitors and internal customers
(employees) and the relationship between these significant components. External
marketing addresses the relationship between the firm and its customers.
Interactive marketing refers to the front end of the firm and the customer. Internal
marketing refers to the relationship of the firm with its employees through its
internal policies and interaction methods including the expectation—matching
behavior and compensation planning. Substantial amount of research effort has
been expended for understanding external customer behavior and developing tools
and techniques for testing and interpreting the external consumer behavior
(Parasuraman et al., 1988). Customer satisfaction with quality and its link with
service delivery has been explored in previous researches resulting in the
identification of number of gaps (Zeithml et al., 1990). Zeithml and Bitner (1996)
have analyzed these gaps and identified a number of service deficiencies or
inadequacies within the service provider that would significantly contribute to
sub-optimization of the services and a higher probability of customer defection.
From the review of literature, it can be said that delivery of intended service to the
customer depends on the extent of integration of values and behavior of the
employees in an organization.

Internal consistency in delivery can be a powerful factor in what the external

customer perceives from the number of interactions he gets in the process of
receiving the service. Present research in the area of customer relationship
management is searching for new, yet, critical links by questioning the concept of
value and approach to value delivery mapping through value chain analysis.

A comprehensive study carried out by Parasuraman et al. (1985) identifies the

determinants of perceived service quality. They are:
• Reliability which includes performance of initial service, accuracy in billing,
keeping records correctly, and performing the service punctually;
• Responsiveness which includes timeliness of service, mailing transaction
slips immediately, efficient customer support and giving prompt service;
• Competence which includes knowledge and skills of the contact employees,
operational support personnel and research capability of the personnel;
• Access which includes easy accessibility by telephone, waiting time for
service is not long, convenient hours of operation and location of service
facility;
• Courtesy involves politeness, respect and friendliness of contact
personnel;
• Communication involves explaining the service, the cost of service and
the problem-solving methods if anything arises;
• Credibility includes company name, reputation and the personnel
characteristics of the contact personnel;

8 The IUP Journal of Management Research, Vol. IX, No. 4, 2010

 • Security involves physical safety and financial security;
• Knowing the customer’s specific requirements and giving individual
attention; and
• Tangibles which include physical facilities, appearance of sales personnel,
tools used for service, physical representation of service.

Literature Review
It has to be noted that much of the attention focused on the service quality construct
is attributable to the SERVQUAL instrument developed by Parasuraman et al. (1988)
for measuring service quality. The SERVQUAL proposes a gap-based conceptualization
of service quality where the gap indicates the extent to which the service obtained
conforms to expectations. In SERVQUAL, both store service performance and
consumer expectations of the store service are explicitly measured to assess the
‘gap’. The gaps in SERVQUAL are:

• GAP 1—Customer expectation and management perceptions of customer

expectations;

• GAP 2—Management perceptions and service standards;

• GAP 3—Service standards and service delivery;

• GAP 4—Service delivery and communication to customers; and

• GAP 5—Customer perception and customer expectation.

Now Gap 6 is also considered which is the gap between consumer expectations
and employee perceptions. Gap 7 also is there.

Given the lack of theoretical support, Dabholkar et al. (1996) used a triangulation
of research techniques to discover the factor structure of service quality. It consisted
of phenomenological interviews with three retail customers, exploratory in-depth
interviews with six customers and a qualitative study tracking the thought processes
of three customers during an actual shopping experience at a store. Combining
these findings, they proposed a hierarchical factor structure for retail service quality
consisting of five dimensions: physical aspects, reliability, personal interaction,
problem-solving and policy. These are also referred to as the second-order factors
because they comprise several sub-dimensions. Each of the first three dimensions
has two sub-dimensions each. These six sub-dimensions, also called the first-order
factors, are labeled as appearance, convenience, promises, doing-it-right, inspiring
confidence and courteousness/helpfulness.

Service quality in retailing is different from any other product/service environment.

For this reason, Dabholkar et al. (1996) developed the Retail Service Quality Scale
(RSQS) for measuring retail service quality. RSQS has a five dimensional structure
of which three dimensions comprise two sub-dimensions each. Studies assessing

A Comparative Study of Service Quality of D’Mart and Apna Bazaar 9

the applicability of the RSQS have reported encouraging results. Dabholkar et al.
(1996) replicated their own study and found all the RSQS dimensions and
sub-dimensions to be valid in the US. Mehta et al. (2000) found the RSQS
five-dimensional structure appropriate for measuring the service quality perceptions
of supermarket consumers in Singapore. Kim and Jin (2002) reported RSQS as a
useful scale for measuring service quality of discount stores across two different
cultural contexts of the US and South Korea, though they reported empirical support
for a four and not a five dimensional structure. A similar study was conducted by
Kaul (2007) when she studied the quality dimensions of apparel stores in Bangalore.
The study mainly focused on the shopping behavior of 180 adult shoppers in
Bangalore. Here the researcher had used MAP sampling process to divide the city
into East, West, South and North. The sample was equally divided into males and
females and also on the basis of Sections A and B. She found out from the research
on RSQS that there are four important factors which decide the service quality
and the scale is quite reliable and valid. But she had suggested further studies in
this regard.

Introduction to Retailing
Retailing in India is receiving global recognition and attention; and this emerging
market is witnessing a significant change in its growth and investment pattern.
There is increased sophistication in the shopping pattern of consumers, which has
resulted in big retail chains coming up in most metros; mini metros and towns
being the next target. Consumer taste and preferences are changing leading to
radical alteration in lifestyles and spending patterns which in turn is giving rise to
new business opportunities. Companies need to be dynamic and proactive while
responding to the ever-changing trends in consumer lifestyle and behavior.

D’Mart and Apna Bazaar

D’Mart
D’Mart is a brand to establish chain of retail supermarkets in Mumbai and Ahmedabad
promoted by a well-established professional group of qualified and experienced
professionals.

Apna Bazaar
Apna bazaar is probably the oldest and largest consumer co-operative multi-state
society with a customer base of over 12 lakh. The Rs. 140 cr Apna Bazaar retail
chain, which has been in existence for over 55 years, catering largely to the ‘middle
class’, Apna bazaar has approximately 80 outlets in Mumbai, Thane and the
neighboring Konkan region. In 1948, it started with ‘The Naigaon Grahak Sahakari
Mandal Limited’, which became Mumbai Kamgar in 1958-59 after other consumer
cooperative societies merged into it. In 1962-63, the organization became
Madhyawarti Grahak Sahakari Mandal.

10 The IUP Journal of Management Research, Vol. IX, No. 4, 2010

 In 1968, the organization started the nation’s first department store on the mill
worker dominated areas like Naigaon under the name of Apna Bazaar.
In a short time, Mumbai Kamgar brand Apna Bazaar grew popular all over Mumbai
and has never looked back. The tagline for Apna Bazaar is, “For us customer is First”.

The location for the store is selected taking into consideration the residential
population in the area, the standard of living of the people, the amount of business
the other shops are doing and also future developments that are likely to take place
in that area. The minimum requirement of area for setting up Apna bazaar is 1,000
sq. feet. The biggest store is at Vashi, which is spread across 27,000 sq. feet.

Apna Bazaar has various products under its brand name. These products are
manufactured by Apna Bazaar in its production units and are sold in its various
outlets. Apna Bazaar follows family branding by selling the various product lines
under the brand name of “Apna Bazaar”. The various products, sold with Apna
Bazaar brand name, are like oils (groundnut, sunflower), masalas (biryani, sambar,
pav bhaji), pickles (chilli, lime, etc.) and others.

Objectives
The main objectives of this paper are:
• To understand and categorize the factors influencing service quality;
• To find out the variables which can be defined under each factor;

• To find out the reliability of instrument in totality and in defining each

factor; and

• To compare D’Mart and Apna Bazaar in terms of quality.

Methodology
Research Design
This is exploratory in nature since it gives insights into the phenomenon of retail
service quality. It does not go deep into the phenomenon of service quality and so
it cannot be termed as descriptive. Exploratory research has the goal of formulating
problems more precisely, clarifying concepts, gathering explanations, gaining
insights, eliminating ideas, and formulating hypothesis. Exploratory research here
is performed by a survey.

Data Collection
The consumers of D’Mart and Apna bazaar especially in Nerul, Seawoods and
Vashi in Navi Mumbai have been selected for data collection using non-probability
sampling method. The sample consists of 140 respondents of D’Mart and
Apna Bazaar, out of which 80 are males and 60 females. The data was collected
using a survey.

A Comparative Study of Service Quality of D’Mart and Apna Bazaar 11

Tools
Generalizable issues are usually important in presenting survey results, so it is
vital to report how samples were chosen, what response rates were achieved and
to comment on the validity and reliability of any instruments used. Since the main
objective of the paper is to find out the opinion of the respondents a five-point
Likert scale has been used here from ‘1-Strongly disagree’ to ‘5-Strongly agree’.
A Likert scale is relatively easy to construct compared to other scales. The process
is to collect a large number of statements that meet two criteria: (1) Each statement
is believed to be relevant to the attitude being studied; and (2) Each is believed to
reflect a favorable or unfavorable position on that attitude. People should give
their level of agreement to the statements. An initial pre-test indicated that one
question about the home delivery was inappropriate since both supermarkets did
not have home delivery. The pilot test was done for five people. Later questionnaires
were given to 140 shoppers. These shoppers were selected because they had
visited these outlets at least two times. These shoppers were from different
backgrounds and different genders.

The questionnaire consists of 28 questions mainly dealing with customer service.

The questionnaires were given to the shoppers at different times (not necessarily
while they are shopping). The objectives of the research and the pattern of the
questions were explained in detail to the respondents so that the bias will be as
minimum as possible.

Analysis and Interpretations

Interpretations from the Exploratory Factor Analysis
Factor analysis is used to understand the important factors that contribute to the
service quality in selection of an retail outlet. Using the mean value calculations,
the satisfactory and unsatisfactory variables for D’Mart and Apna Bazaar have
been analyzed in Table 1. The mean value of above 3.5 shows that the respondents
are satisfied with the parameter and the values equal to or below 3 means they
are not happy with the parameter. Anything between 3.0 to 3.5 means, the
respondents are reasonably happy with the parameter. Using the rotation
component matrix in Table 2, it can be interpreted that:
• The factors were fixed at five, such as personal interaction, physical
aspects, reliability, problem-solving and policy;
• They together contributed almost 51% of the total variance;
• The most important factor among these is personal interaction, which
contributes almost 26% of the total variance;
• The variables are divided into different factors based on the values in the
rotated component matrix (the higher values are taken). The division of
variables into different factors are given in Table 3.

12 The IUP Journal of Management Research, Vol. IX, No. 4, 2010

 Table 1: Interpretations of Variables

Satisfactory Variables Unsatisfactory Variables

D’Mart
Credit cards Visually appealing catalogues
Suitable operating hours Courteous through phone
Prompt service to customers Exchange of items
Safety of transactions Immediate handling of customer complaints
Error-free sales transaction
Clean arrangement of products
Room for customers
Visually attractive store
Apna Bazaar
Credit cards Visually appealing catalogues
Arrangement of billing counters Modern chairs
Clean arrangement of products Exchange of items
Safety of transactions Sincere interest in solving customer problems
Convenient parking

Table 2: Rotated Component Matrixa

Component
Variables
1 2 3 4 5
Modern chairs 0.749
Visually attractive store 0.757
Visually appealing catalogues 0.616
Clean arrangement of products 0.485
Arrangement of billing counters 0.527
Room for customers 0.345
Starting of new variety of product 0.607
Provision of services at the time 0.502
Services right at the first time 0.534
Merchandise available when needed 0.595
Product is retrieved fast 0.517
Error-free sales transactions 0.555
Knowledge of employees 0.565
Behavior of employees 0.675
Safety of transactions 0.502

A Comparative Study of Service Quality of D’Mart and Apna Bazaar 13

 Table 2 (Cont.)
Component
Variables
1 2 3 4 5
Prompt service to customers 0.516
Telling customers about services 0.605
Always there for customers 0.614
Individual attention to customers 0.507
Courteous with customers 0.461
Courteous through phone 0.651
Exchange of items 0.718
Sincere interest in solving customer problems 0.675
Immediate handling of customer complaints 0.483
Quality products 0.402
Convenient parking 0.342
Suitable operating hours 0.654
Major credit cards are accepted 0.669
Note: Extraction Method: Principal Component Analysis; Rotation Method: Varimax with
Kaiser Normalization; aRotation converged in 14 iterations.

Table 3: Interpretation of Output from Factor Analysis

Factor 1 Factor 2 Factor 3 Factor 4 Factor 5
(Personal (Physical (Reliability) (Problem- (Policy)
Interaction) Aspects) Solving)
Knowledge of Modern chairs Visually appea- Product is Sufficient room for
employees ling catalogues retrieved fast customers

Behavior of Visually attractive Arrangement of Error-free sales Safety of

employees stores billing counters transactions transactions

Telling customers Clean arrange- Services right at Courteous Prompt service to

about services ment of products the first time through phone customers

Always there for Starting of new Merchandize avai- Exchange of Courteous with
customers variety of pro- lable when needed items customers
ducts

Individual Provision of Sincere interest Quality products

attention to services at in solving custo-
customers the right time mer problems

Immediate hand- Convenient parking

ling of customer
complaints

Suitable operating
hours
Major credit cards
are accepted

14 The IUP Journal of Management Research, Vol. IX, No. 4, 2010

Reliability Analysis
It is observed from the reliability analysis (Table 4) that the alpha of D’Mart is
0.8792 and Apna Bazaar is 0.9074. The total alpha is 0.8914.

Table 4: Reliability Analysis of Factors

Dimensions Alpha Sub-Dimensions Alpha

Reliability Reliability
Personal interaction 0.7898 Inspiring Confidence 0.7364
Courteousness/Helpfulness 0.6368
Physical aspects 0.7392 Appearance 0.7770
Convenience 0.5409
Reliability 0.5639 Promises 0.4677
Doing-it-right 0.4698
Problem-solving 0.7477 None
Policy 0.7156 None
Overall 0.8914

Recommendations
Based on the above analysis, D’Mart and Apna Bazaar are recommended
to follow these:

• Improve the system of customer handling and solving of customer problems

by giving proper training to existing employees and by having a separate
department;
• Improve the parking space—for this, the outlets have to find some space
which can be converted to parking lot;
• Improve the physical facilities including ‘look of the outlets’—for this, they
can use a lot of catalogues to attract the customers;
• Properly train the employees so that they can be more empathetic while
answering the calls from customers;
• Improve the area of personal interaction by giving proper training
to employees;
• Locate service points nearer to customers;
• Make delivery points more user-friendly by having cleanliness and by providing
convenience of shopping to customers;
• Try to reduce the time gap between service sought and delivered;
• Find out the expected service of customers by doing adequate research and
try to deliver it;
• Improve the variety of products available; and
• Try to give unconditional guarantee.

A Comparative Study of Service Quality of D’Mart and Apna Bazaar 15

Some other factors which can be done are:
• Role clarity of each employee has to be given;
• The outlets can continue to do research on customer needs; and
• The employees of the outlets have to be trained on a regular basis.

For D’Mart: Along with the above suggestions, D’Mart can also start a system of
exchange of items which has become important nowadays.

For Apna Bazaar: They have to modernize the store, so that they can retain the
old customers and attract new ones.

Conclusion
It can be concluded from the study that personal interaction followed by physical
appearance of the outlet plays a vital role in choosing a retail outlet. It is found
from the study that D’mart is slightly ahead of Apna Bazaar in terms of service
quality.

Limitations

• The sample size is 140 which is small and that might affect the overall
reliability.
• The factor analysis is only exploratory and not confirmatory.
• The study is limited to Navi Mumbai and cannot be generalized.
• The study is limited to only D’Mart and Apna Bazaar and cannot be
generalized.
• The time available is short and that also limits the study.
• The study is based on the opinion of respondents (questionnaire) and
there can be bias. The questionnaire might have excluded some important
factors.
• The analysis and interpretations might not be exhaustive.
• The reliability of the scale is only found out. The validity and consistency
are not found. @

Bibliography
1. Bedi Kanishka (2006), Quality Management, 1st Edition, pp. 599-614, Oxford
University Press.

2. Dabholkar P A, Thorpe D I and Rentz J O (1996), “A Measure of Service Quality

for Retail Stores: Scale Development and Validation”, Journal of the Academy of
Marketing Science, Vol. 24, No. 1, pp. 3-16.

3. Kaul Subhashini (2007), “Measuring Retail Service Quality—Examining

Applicability of International Research Perspectives in India”, Vikalpa,
January-March, pp. 33-37.

16 The IUP Journal of Management Research, Vol. IX, No. 4, 2010

 4. Kim S and Jin B (2002), “Validating the Retail Service Quality Scale for Us and
Korean Customers of Discount Stores: An Exploratory Study,” Journal of Services
Marketing, Vol. 7, No. 2, pp. 223-237.

5. Lovelock Christopher, Wirtz Jochan and Chatterjee Jayantha (2007), Services

Marketing: People, Technology, Strategy—A South Asian Perspective, 5th Edition,
Pearson Education.

6. Mehta S C, Lalwani A K and Soon L H (2000), “Service Quality in Retailing:

Relative Efficiency of Alternative Measurement Scales for Different Product-
Service Environments”, International Journal of Retail and Distribution
Management, Vol. 28, No. 2, pp. 62-72.

7. Panda K T (2002), “Service Quality Value Alignment Through Internal Customer

Orientation Financial Services: An Exploratory Study in Indian Banks”,
The Icfai Journal of Applied Finance, Vol. 8, No. 3.

8. Parasuraman A, Zeithaml V A and Berry L L (1985), “A Conceptual Model of

Service Quality and Its Implications for Future Research”, Journal of Marketing,
Vol. 49, No. 4, pp. 41-50.

9. Parasuraman A, Zeithaml V A and Berry L L (1988), “SERVQUAL: A Multiple-

item Scale for Measuring Consumer Perceptions of Service Quality”, Journal of
Retailing, Vol. 64, No. 1, pp. 12-40.

10. Pradhan Swapna (2004), Retailing Management, 2nd Edition, Tata McGraw-Hill,
India.

11. Pyramid Group (2005), “Red Herring Prospects”, Report Given to SEBI.

12. Schindler P and Cooper D (2005), Business Research Methods, 8th Edition, Tata
McGraw-Hill, India.

13. Vedamani G Gibson (2006), Retail Management: Fundamental Principles and

Practices, 2nd Edition, Jaico Publishers.

14. Zeithaml V, Parasuraman A and Berry L (1990), Delivering Quality Service,

Free Press, New York.

15. Zeithaml V A and Bitner M J (1996), Service Marketing, McGraw-Hill, New York.

A Comparative Study of Service Quality of D’Mart and Apna Bazaar 17

 Appendix

Questionnaire

Please read the following instructions

1. Please tick (3) the answer for each of the questions

2. Please take your time in answering the questions

Name of the Supermarket:

Name of the branch:

Name of the Respondent:

Address:

Occupation:

Sex: Male  Female 

Age: 20-30  30-40  40-50 

50-60  >60 

Please use the following divisions for answering the questions

1 – Strongly Disagree 2 – Disagree 3 – Neutral

4 – Agree 5 – Strongly Agree

1. The store has modern-looking equipments, chairs and fixtures.

1 2 3 4 5

2. The store and its facilities are visually attractive.

1 2 3 4 5

3. Materials associated with the store’s service such as catalogues are

visually appealing.

1 2 3 4 5

4. The store has clean, attractive and convenient arrangement of products.

1 2 3 4 5

5. The arrangement of billing counters is very convenient.

1 2 3 4 5

18 The IUP Journal of Management Research, Vol. IX, No. 4, 2010

 Appendix (Cont.)
Questionnaire

6. There is enough room for the customers to move around.

1 2 3 4 5

7. When the store promises to start any new variety of products by a

certain time, it will do so.

1 2 3 4 5

8. The store provides its services at the right time.

1 2 3 4 5

9. The store performs the service right at the first time.

1 2 3 4 5

10. The store has all the merchandize items available when the customers
want them.

1 2 3 4 5

11. If a product gets out of stock, the store tries to get it as soon as
possible so that the customer does not suffer.

1 2 3 4 5

12. The store insists on error-free sales transactions.

1 2 3 4 5

13. Employees in the outlet have the knowledge to answer customer’s

questions.

1 2 3 4 5

14. The behavior of employees in this outlet instills confidence in customers.

1 2 3 4 5

15. Customers feel safe in their transactions with the store.

1 2 3 4 5

16. The employees in the store give prompt service to the customers.

1 2 3 4 5

17. Employees in this store tell customers exactly when the services will be
performed.

1 2 3 4 5

A Comparative Study of Service Quality of D’Mart and Apna Bazaar 19

 Appendix (Cont.)
Questionnaire

18. Employees in this store are never too busy to respond to customer’s
requests.

1 2 3 4 5

19. This store gives customers individual attention.

1 2 3 4 5

20. Employees in this store are consistently courteous with customers.

1 2 3 4 5

21. Employees in this store treat customers courteously on the telephone

(for home delivery).

1 2 3 4 5

22. The store willingly handles exchange of any item.

1 2 3 4 5

23. When a customer has a problem, the store shows a sincere interest in
solving it.

1 2 3 4 5

24. Employees in this store are able to handle customer complaints directly
and immediately.

1 2 3 4 5

25. This store offers high quality products.

1 2 3 4 5

26. This store provides plenty of convenient parking for customers.

1 2 3 4 5

27. This store has operating hours convenient to all their consumers.

1 2 3 4 5

28. This store accepts all major credit cards.

1 2 3 4 5

Reference # 02J-2010-04-01-01

20 The IUP Journal of Management Research, Vol. IX, No. 4, 2010

Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.