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Compiled By: Ms. Pranita Shah Student of ICFAI National College
I, Ms. Pranita P. Shah, hereby declare that the report compiled by me for the purpose of Understanding the Satisfaction Level of the Customers of Fabindia Panaji outlet and also the factors that influence shoppers‟ decision whilst choosing Fabindia; is original and is not copied from any other project or book. The definitions have been referred from various sources which are mentioned in my project.
This Project is done to fulfill the Academic Requirement of MBA Course.
Ms. Pranita P. Shaha
I wish to express my sincere gratitude to Ms. Simi, HR Head, Fabindia, Panaji, who gave me an opportunity to do a projeect in such an esteemed organization. I am deeply indebted to Mr. Imran Ahmad, Centre Head – INC Porvorim and Mr. Chetan Hiremath, Faculty Guide, for their continuous guidance and help in organizing my thoughts and in compiling this project. It would not be possible for me to complete this project without their encouragement and co-operation. I would also like to thank the Other Staff of Fabindia, who helped me conduct my research.
Last but not the least I thank my Family & Friends for their encouragement, support and suggestions which have helped allocate in the completion of my Project.
With the deepest sense of Gratitude,
Ms. Pranita P. Shaha
TABLE OF CONTENTS
Sr. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Abstract
Page No. 05 06 11 12 17 17 18 20 21 27 29 37 39 42
Introduction to the Retail Sector Company Profile – Fabindia Literature Review Description of the Study Objective of the Study Hypothesis Formulation Methodology Data Analysis Results & Analysis Hypothesis Testing & Analysis Conclusion – Observations & Recommendations References Annexure – Questionnaire
Customer satisfaction is the buzzword of the 1990s. Unfortunately, there still exists a perception that satisfying their customers as a nice thing to do rather than a critical component of success. Organization needs to understand that there is a direct relation between customer satisfaction and profitability. In today‟s competitive market, one needs to strive hard to retain its market share. One needs to understand its customers‟ tastes, likes and preferences well to serve them better and make them loyal to the company.
Understanding a customer better becomes although more important for a retailer as there is lot of competition from local as well as some international branded stores. The customer should be made comfortable in all the ways possible. A retailer needs to take into consideration several aspects such as the quality of service provided, the ambience of the store, hygiene factors, the merchandise availability, price range offered etc., else they will switch over to the competitors.
And so a study was conducted to know whether product range, price range, service, ambience and cleanliness and display of products have an influence on customers‟ decision to visit Fabindia and also to see if the customers were satisfied with Fabindia. The study was conducted at Fabindia, Panaji, Goa, primarily for Apparels, Home Furnishing and Décor, Organic Products and Jewellry section. Over 135 customers were interviewed with structured questionnaire. Further the data was tabulated and analyzed using chi-square test. The study concluded that ambience and cleanliness of the store influenced the customers‟ decision to visit the store and the customers who are satisfied with the product range were not as equal to the customers satisfied with the price range, service, ambience & cleanliness and the display of products in all the Sections of the store. This means that there are few customers who were happy with the product range and unhappy with the other factors or so on….
INTRODUCTION TO THE RETAIL SECTOR
The Indian Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country‟s GDP and around 8 per cent of the employment.1 The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But because of high initial investment that s required to break even with the other companies, not all have tasted the fruits of success.
Today we have shopping malls, multi-storied malls, huge complexes offering shopping, entertainment and food under one roof coming up to cater to the need of changing consumer buying patterns and their demands. The key factors in the growth of the organized Retail sector in the country would be – A large young working population with median age of 24 years Nuclear families in urban areas Increasing working women population Emerging opportunities in the services sector2
Facts: Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth US$ 175-200 billion by 2016. The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent per year.
Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even
http://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-itsgrowth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities1.asp 2 http://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-itsgrowth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities1.asp
Jewellery, are slowly becoming lifestyle products that are widely accepted by the urban Indian consumer. A number of large corporate houses – Tata‟s, Raheja‟s, Piramals‟s, Goenka‟s; have already made their foray into this arena, with beauty and health stores, supermarkets, self-service music stores, newage book stores, everyday-low-price stores, computers and peripherals stores, office equipment stores and home/building construction stores.
GROWTH OF RETAIL SECTOR IN INDIA
The 2 main booming industries in the country at present are Retail and Real Estate and it is believed that the prospects of both the sectors are mutually dependent on each other. Retail, one of India‟s largest industries, accounting for over 10 per cent of the country‟s GDP and around eight per cent of the employment retailing in India is gradually inching its way toward becoming the next boom industry.
As discussed earlier about the changing consumer buying behaviour and their increasing demands, many malls, multiplexes, multi-storied malls have come up. This has also contributed to large-scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items (CHART)
One more important factor that is leading to the growth of the retail sector in India is the increase in the young working population. In India, hefty pay packets, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector. The key factors like more nuclear families in urban areas, increase working-women population, etc. have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. This had made way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores.
India is being seen as a potential goldmine for retail investors from over the world and India has been rated as the top destination for retailers for an attractive emerging retail market. India‟s vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. The organized retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles, burgeoning income and favorable demographic outline. 3
Traditionally retailing in India can be traced to – The emergence of the neighborhood Kirana stores catering to the convenience of the consumers Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission 1980s experienced slow change as India began to open up economy. Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers. For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and Music World in music; Crossword and Fountainhead in books. Post 1995 onwards saw an emergence of shopping centers Mainly in urban areas, with facilities like car parking Targeted to provide a complete destination experience for all segments of society Emergence of hyper and super markets trying to provide customer with 3 Vs Value, Variety and Volume Expanding target consumer segment: The Sachet revolution - example of reaching to the bottom of the pyramid. At year end of 2000 the size of the Indian organized retail industry is estimated at Rs. 13,000 crore
RETAIL SECTOR IN GOA
Retail in Goa has seen an average growth of 8-10% in every year since the last 5 years.5 There has been a sudden boom from 2004. Goa Retail Market value and the land values in Goa‟s capital city, Panaji has almost doubled in the last year. The other Retail Market Places in Goa State have seen a steady increase of twenty percent.
Goa tourism is mainly attracted with the coastal belt as it has a fine sea view is always insisting. People are also interested to see inner lands, high hills, rivers and valleys with closeness to the city. Goa Retail spaces for restaurants, coffee shops, boutique shop, art gallery, salon, lifestyle store, spa, destination store, showroom etc. With the huge demand in Goa Retail, it provides a lot more Retail Job opportunities in Goa.
COMPANY PROFILE FABINDIA
Fabindia is an Indian chain of stores retailing ethnic products made by craftsmen from rural India. Fabindia sources its products from over 15000 craft persons and artisans across India. The company supports the craft traditions of India by providing a market and thereby encourage and sustain rural
employment. Today they have retail outlets in all major cities of India - 105 at last count - in addition to international stores in Dubai, UAE; 3 stores in Bahrain; Doha, State of Qutar and Rome, Italy. The vision of the company is to maximize the hand made element in our products, whether it is hand-woven textiles, hand block printing, hand embroidery or handcrafting home products. 6
The major portion of Fabindia‟s product range is textile based. Non- textile introductions to this range are Home Products (introduced in October 2000), Organic Food Products (introduced in July 2004) & Fabindia Sana – Fabindia‟s range of authentic bodycare products (introduced in March 2006).
1. V. Krishna Mohan, P. Pinkapani and MSR Sesha Giri (2008) “Dynamics of Retail Market” Service Marketing, ICFAI University Press (VI) 3, pp. 20 – 27. The study was conducted to find out the efforts of economic growth, demographics and urban India on retailing. The study was based on secondary data. The study concluded that though only 3% of the entire retail sector is organized, the new retail formats coming up are changing the lifestyles, living spaces, and structure of family and their organizations. 2. Amit Kumar Sinha (2005), “Gender difference among adolescences as influences and impact of communication in the family purchase decision – a study”, Marketing Management, ICFAI University Press (IV) 4, pp. 50 – 59 The study was conducted aiming to identify the role measures of adolescences; to find out the difference between male and female adolescences in their influence and their communication in family purchases. A Questionnaire on the interval scale was used to interview the sample size of 30 and the data was measured on 5 Point Likert Scale and Sementic Differential Scale. And it was concluded that the general socialization
orientation of parent serves as a context of interaction between parents and adolescences in purchase decisions. 3. Mdhurime Deb and Gautam Sinha (2007), “Importance of Service Quality,” Marketing Management, ICFAI University Press, (VI) 1, pp. 6 -15 They conducted a study to prepare a model to measure retail service, quality and present the outcome of the service quality in customer retention. Retailers selling grocery items, food departments, etc. were interviewed. Their finding was there was Correlation between relative prices and good quality is very low as against the hypothesis. Therefore, there is a strong relationship between price and quality.
4. Valsamma Antony (2009), Small retail stores strive on Customer Relations, Marketing Mastermind, ICFAI University Press, 68-70. To study the how smaller retailers are placed to handle the oncoming competition, the sales promotion techniques employed by these retailers, the customer relations followed. The sample unit for this study consisted of five categories of retail outlets (grocery, medical, stationery, bakery, apparel store). The findings of this study were in customer relationship measures practices; stocking and supplying all the goods required by the customer as well as friendliness even outside the store were most prominent. About 96% of the respondents were regular customer and hence enjoyed an assured market.
5. Sukanya Ashokkumar,(2005),Private Labels: Regional Consumer Perception, Advertising Express, ICFAI University Press, pp.55-59 The study is about how much is the regional consumer aware of the private brands in the market and their perception towards it. It was found that level of awareness in small cities is high and the findings suggest that private labels should position as those providing value for money because they are perceived as cheaper compared to manufacturers brand.
6. Sunayna Khurana (2008), “Consumer Expectation & Perception – A Study of Retail in Hariyana,” Consumer Behaviour, ICFAI University Press, (III) 3, pp. 47 – 57
The study aimed at defining the dimension of service quality and examines the service quality gap. Judgment and convenience sampling was done and data collected from various retail outlets. 225 respondents were interviewed. And it was found that the retailers of Hariyana provided high quality merchandise according to the needs and wants of the customers.
7. Paromita Goswami (2007), “Apparels Shopping Behaviour of Urban Indian Students,” ICFAI University Press, (VI), 4, Pg.. 47 The main objective of this study was to evaluate the shopping behaviour of students in terms psychological variables – store choice and interpersonal influence. Stratified sampling was done and the Sample size taken was 185 college students out of which 100 were old shoppers. It was noticed that older customers are less concerned on bargaining but more conscious about the brand. Quality for students – mother, peers, play important role. 8. Derry Law, Joanne Yip, “The Impact of Visual Merchandising on Consumer Decision Process for Intimate Apparels”. The report is available at – http://www.scribd/pdf/ceo5ate90200700065/ The study was conducted to find the impact of impulsive buying factors like sales promotions, placement of products, window merchandising, effective price strategy, etc. on customers‟ impulse buying behaviour. To find the same, Focused group interviews were done. Sample size was drawn from the females aging between 25 – 35. The sample size intended to look for new intimate apparels; the mannequin‟s also influenced their decisions. 9. Sonia (2008), “Customer Perception towards Mega Mart”, Service Marketing, ICFAI University Press, (VI) 4, pp. 38 – 48 Objective: To realize cost and profit from commodities and services to highlight socio-economic characteristics (age, sex, income, education) and customers perception (location, parking space, etc.) towards the various aspects of Mega Mart. To study the same 250 customers were interviewed who visited 5 Mega Marts. Analysis of Variance and Likert Scale attributes were used for analysis. It was understood that Mega Mart cannot attract older age and female customers and so the Marts need to extend their advertising and sales promotion. 10. Kumar Gaurav (2008), “Impact of Relationship Marketing Strategy on Customer Loyalty”, ICFAI Journal of Marketing Research, (VII) 2, Pg. 7
The study was aimed to investigate the impact of relationship marketing strategy on customer loyalty. And also to investigate the impact o various demographic variables in association with relationship marketing variables on customer loyalty. Convenience sampling of 130 customers and they were interviewed. It was found that factors like trust, customer focus and communication can predict customer loyalty very well.
11. Meera Mullick-Kanwar,(2005), The Evolution of Private Label Branding, Advertising Express, ICFAI University Press, pp.27-34 The study is about how there has been a rapid shift in mindset about the role and requirements for today‟s private label brands. This study suggests from low priced, poor quality „me too‟ to retailers own proprietary brand. It was found that when „own‟ brands are created and steered, they have their pinnacle to reach success. 12. Abhigyan (2008), “Latest trends in consumer buying behaviour in Lifestyle”, Management Research, ICFAI University Press, (VII) 6, pp. 70 – 81 The main objective of this study was to understand the nature of consumption is hedonic in nature and how it dominates lifestyle center purchasing. Survey was conducted with the help of Scaled questionnaire and 266 college students and staff members were interviewed. He concluded that less conservative person is generally more materialistic, tends more towards impulsive buying and is more likely to be young and big economic class. This type of customers is ideal for lifestyle. 13. J.K. Nandi (2007), “An alternative mode to improve productivity in 21st century”, Marketing Research, ICFAI University Press, (VI) 1, pp. 7 – 15. The study was aimed to find the relationship between the employees achieved motivation and productivity as a whole in an organization. Thematic appreciation test and production of 12 months has been considered as sample size. The study concluded by saying that achieved motivation improves productivity of whole organization.
14. Hye-Shin Kim, Byuongho Jin, (2006), Exploratory study of virtual communities of apparel retailers, Journal of fashion marketing and management, Emerald group publishing ltd. (X) 1, pp.41-55 This study aims to present a general overview of the characteristics of virtual communities hosted by apparel retailers. Content analysis was conducted on 2,521 web sites hosted by apparel retailers. Web sites of apparel retailers were identified from Stores Magazine “top 100 specialty retailers” and “top 100 retailers” listings, and Google search engine directory. Web sites were analyzed in terms of general characteristics of apparel retailers (e.g. apparel product categories, ability to purchase online, presence of brick-and-mortar stores). Two coders individually visited each web site and coded the contents. A total of 13 virtual communities hosted by apparel retailers were found. Apparel retailers selling casual merchandise to the young teen market had the strongest representation. Most of the virtual communities used bulletin or message board tools.
15. Despina K (2008), Buyers satisfaction on purchasing decision and relative contribution of promotions tools, ICFAI university marketing management, IUP, vol. 8 no. 1, pp.6-14. The study intends to examine consumer attitude towards Olympics product, purchasing behavior and various means of promotion on their attitude and purchase. Data collection was based on structured questionnaire of sample of 170 from central points in the city of Athens. Due to the product to be expensive above the line promotion tools seems less effective in gaining customers satisfaction. So BTL was adopted.
After studying all such studies, one can understand the importance for retailers to understand the importance of Customer Satisfaction and so I found it necessary to understand the satisfaction level of the customers of Fabindia - Panaji outlet and also
the factors that influence shoppers‟ decision whilst choosing Fabindia.
DESCRIPTION OF THE STUDY
The research is aiming to understand the satisfaction level of the customers of Fabindia - Panaji outlet and also the factors that influence shoppers‟ decision whilst choosing Fabindia.
OBJECTIVE OF MY STUDY
To study the major factors (product range, service, price range, ambience & cleanliness and display) influencing the decision of customers to visit Fabindia. To know whether the customers are satisfied with the above mentioned factors offered by Fabindia - Panaji outlet. To suggest measures to improve their services towards customers.
1. Apparels: Ho: P1 = P2 = P3 = P4 = P5 Where, P1 = % of customers satisfied with the Product Range offered in the Apparels Section. P2 = % of customers satisfied with the Price Range offered in the Apparels Section. P3 = % of customers satisfied with the Service offered in the Apparels Section. P4 = % of customers satisfied with the Ambience and Cleanliness in the Apparels Section. P5 = % of customers satisfied with the Display of Products in the Apparels Section. H1: P1 ≠ P2 ≠ P3 ≠ P4 ≠ P5
2. Home & Décor Furnishings Ho: P1 = P2 = P3 = P4 = P5 Where, P1 = % of customers satisfied with the Product Range offered in the Home & Décor Furnishings Section. P2 = % of customers satisfied with the Price Range offered in the Home & Décor Furnishings Section. P3 = % of customers satisfied with the Service offered in the Home & Décor Furnishings Section. P4 = % of customers satisfied with the Ambience and Cleanliness in the Home & Décor Furnishings Section. P5 = % of customers satisfied with the Display of Products in the Home & Décor Furnishings Section. H1: P1 ≠ P2 ≠ P3 ≠ P4 ≠ P5
3. Organic Products Dept. Ho: P1 = P2 = P3 = P4 = P5 H1: P1 ≠ P2 ≠ P3 ≠ P4 ≠ P5
P1 = % of customers satisfied with the Product Range offered in the Organic Products Section. P2 = % of customers satisfied with the Price Range offered in the Organic Products Section. P3 = % of customers satisfied with the Service offered in the Organic Products Section. P4 = % of customers satisfied with the Ambience and Cleanliness in the Organic Products Section. P5 = % of customers satisfied with the Display of Products in the Organic Products Section.
4. Jewellry Ho: P1 = P2 = P3 = P4 = P5 H1: P1 ≠ P2 ≠ P3 ≠ P4 ≠ P5
P1 = % of customers satisfied with the Product Range offered in the Jewellry Section. P2 = % of customers satisfied with the Price Range offered in the Jewellry Section. P3 = % of customers satisfied with the Service offered in the Jewellry Section. P4 = % of customers satisfied with the Ambience and Cleanliness in the Jewellry Section. P5 = % of customers satisfied with the Display of Products in the Jewellry Section.
The study was conducted to understand the satisfaction level of the customers of Fabindia - Panaji outlet and also the factors (Product range, Price range, Service, Ambience & Cleanliness, Display of Products) that influence shoppers‟ decision whilst choosing Fabindia. It is a primary-descriptive research involving pilot study, descriptive study and secondary data analysis. The study is aiming to find out the which is the most dominant factor that influences the customer to visit Fabindia and also if they are satisfies with the stores‟ offering. The study will also include a survey wherein a questionnaire will be given to the customers at the outlet and the data will collected personally.
The data will be collected using a structured questionnaire from the retail outlet; convenience sampling will be used since I will be interviewing customers in the outlet. The target population will be people shopping for in the outlet. The data collected will be put on a master-sheet and also fed in to excel sheet, using the statistical tools the data will be tabulated and analyzed. Also secondary data from previous researches and observations during conducting the survey will be used for the study.
A sample size of 250 customers was taken, by finding out how many customers visit the retail outlet on an average in a week. Due to response error and unwillingness of customers to fill up the questionnaires, the data was analyzed with 130 respondents.
Measurement tools like likert, itemized and comparative scales will be used in the questionnaire in order to measure the collected data. The data was tabulated using pie-charts, graphs and tabular columns and the master-sheet was prepared. Based on the findings the hypotheses were tested using chi-square.
The above chart depicts the percentage of people who prefer traditional, denims, formals and casuals. According to the chart, 40% of the people interviewed prefer Casuals, 32% prefer Formals, 18% prefer Traditional and only 10% prefer Denims. And hence the store can keep more of casual clothes to attract the target customers.
This chart shows the type of Fabric customers prefer. According to the chart, 68% of the respondents prefer Cotton apparels, 25% prefer Silks, 4% prefer Synthetic, 1% prefer Polyester, 2% prefer other fabrics like organzas, tussar, etc. As we can see a huge no. of customers prefer cotton than any other material, major reason being the climate and hence the store can offer more variety in cotton.
Frequency of buying Apparels
Once in a Fortnight Once in a Month Once in 6 Months Once in a Year
This chart shows the frequency at which customers make purchase of apparels. According to the chart, 48% of the respondents purchase apparels once in a month, 36% make purchases once in 6 months, 15% buy once in a fortnight, 1% buy once in year. It can be seen that people do buy clothes atleast once in a month and hence the store needs to take care of the changing fashions and try to offer customers something new every time they visit.
This chart shows the occasions on which customers make purchase of apparels. According to the chart, 60% of the respondents purchase apparels based on their needs, 16% make purchases to gift, 12% buy on Birthdays/Anniversaries, 12% buy for festivals.
1st Visit to Panaji Fabindia
This chart shows whether the customers visit to the store was the first one or whether they were regular visitors. According to the chart, 70% of the respondents were the regular visitors of the store where as only 30% of them were 1 st time visitors.
Source to Panaji Fab
Internet Word of Mouth
Print Ads / Hoardings Gift Vouchers
This chart shows 42% of the 1st time visitors were attracted to the store through word of mouth from their friends & relatives, 29% of them through Gift Vouchers, 18% through Internet and 11% through Print Ads & Hoardings. The store needs to provide best of service and see to it that the customer is satisfied thoroughly with what has been offered to him/her as 42% of the customers come to the store through word of mouth.
This chart depicts the frequency, i.e. no of times a customer visits Fabindia‟s Panaji outlet. 56% of the customers interacted with said that they visit the store once in a month, 18% said once in 3 weeks, 16% said once in 2 weeks and 10% of them visited the store once in a week.
The above chart tells us that 25% of the customers interviewed spend amount in the range of 1300 – 1800 Rupees on apparels, where 24% spend in the range of 800 – 1300, 18% in the range of 2500 and above, 17% in the range of 1800 – 2300 and 16% in the range of 300 – 800.
Expenditure on Home Furnishing & Décor per year
19% 30% 37%
5000-10000 10000-15000 15000-20000 20000 & above
This chart depicts that 30% of the customers spend in the range of 10000 – 15000 on furniture per year, 37% spend in the range of 5000 – 10000, 19% spend in the range of 15000 – 20000 and only 14% spend in the range of 20000 & above. Depending on this the store can decide as to how much of the store space should be dedicated to which type of furniture.
Hardly, 35% of the total customers interviewed were aware of both the store of Fabindia. This seems to be due to lack of advertisements and social interactions with the public.
92% of the customers preferred the Panaji / Miramar outlet as compared to Candolim outlet, major reason being most of the customers were the ones residing in Panaji, Margao and Vasco and hence the Miramar outlet seemed more convenient.
RESULTS & ANALYSIS
Finding the dominant attribute by ranking them (1-Highest and 5-Lowest) Product Range (29x5)= 145 (22x4)=110 (16x3)=48 (31x2)=62 (32x1)=32 397 Price Range (19x5)=95 (12x4)=48 (37x3)=111 (31x2)=62 (31x1)=31 347 Ambience Service & Cleanliness (18x5)=90 (25x4)=100 (23x3)=69 (39x2)=78 (25x1)=25 362 (35x5)=175 (39x4)=156 (21x3)=63 (15x2)=30 (20x1)=20 444 (29x5)=145 (32x4)=128 (33x3)=99 (14x2)=28 (22x1)=22 422 Display
Rankings No. of 1’s No. of 2’s No. of 3’s No. of 4’s No. of 5’s Total
Ranking of Factors influencing Customers Decision
450 400 350 300 250
100 50 0 Product Range Price Range Service Ambience & Cleanliness Display of Products
The above chart shows that it is the ambience and cleanliness of the store that attracts customers. According to the data, the most influential factor is the ambience and cleanliness the store maintains (444), followed by display of products (422), product range offered by the store (397), service provided by the sales staff (362) and then by the price range (347).
The above is calculated by adding the rankings of the attributes, for example in the above table the total number of 1‟s received for Product Range is 29 and these 29 responses are multiplied with 5 because it is the most preferred. Similarly for Product Range the total number of 5‟s received is 32 and it being the lowest value it is multiplied by 1 since it‟s the least preferred by those respondents.
HYPOTHESIS TESTING & ANALYSIS
Product Range / Variety Satisfied Neutral Unsatisfied
Ambience & Cleanliness 112 14 4 130
Display 99 25 6 130
Total 462 140 48 650
101 92 58 27 36 38 2 2 34 130 130 130 2 Note: χ = 129.08, for v = 8, Significant Level at 0.10
fe 101 92 58 112 99 27 36 38 14 25 2 2 34 4 6
fo 92.4 92.4 92.4 92.4 92.4 28 28 28 28 28 9.6 9.6 9.6 9.6 9.6
fe-fo 8.6 -0.4 -34.4 19.6 6.6 -1 8 10 -14 -3 -7.6 -7.6 24.4 -5.6 -3.6
(fe-fo)2 73.96 0.16 1183.36 384.16 43.56 1 64 100 196 9 57.76 57.76 595.36 31.36 12.96
(fe-fo)2/fe 0.73 0.002 20.40 3.43 0.44 0.04 1.78 2.63 14 0.36 28.88 28.88 17.51 7.84 2.16 129.08
The null hypothesis is rejected as the χ2 value is greater than the chi square table value found at 8 degree of freedom which is 20.09. We can observe that the calculated value does not fall into the accepted (shaded) region and hence we reject the null hypothesis and accept the alternate hypothesis. This depicts that the customers who are satisfied with the product range are not as equal to the customers satisfied with the price range, service, ambience & cleanliness and the display of products in the Apparel Section of the store.
Home Furnishing & Décor Section
Product Range / Variety Satisfied Neutral Unsatisfied
Ambience & Cleanliness 91 33 6 130
Display 94 32 4 130
Total 397 199 54 650
94 70 48 32 50 52 4 10 30 130 130 130 2 Note: χ = 77.28, for v = 8, Significant Level at 0.10 (fe-fo)2 213.16 88.36 985.96 134.56 213.16 60.84 104.04 148.84 46.24 60.84 46.24 0.64 368.64 23.04 46.24
fe 94 70 48 91 94 32 50 52 33 32 4 10 30 6 4
fo 79.4 79.4 79.4 79.4 79.4 39.8 39.8 39.8 39.8 39.8 10.8 10.8 10.8 10.8 10.8
fe-fo 14.6 -9.4 -31.4 11.6 14.6 -7.8 10.2 12.2 -6.8 -7.8 -6.8 -0.8 19.2 -4.8 -6.8
(fe-fo)2/fe 2.27 1.262 20.54 1.48 2.27 1.90 2.08 2.86 1.40 1.90 11.56 0.064 12.29 3.84 11.56 77.28
The null hypothesis is rejected as the χ2 value is greater than the chi square table value found at 8 degree of freedom which is 20.09. We can observe that the calculated value does not fall into the accepted (shaded) region and hence we reject the null hypothesis and accept the alternate hypothesis. This depicts that the customers who are satisfied with the product range are not as equal to the customers satisfied with the price range, service, ambience & cleanliness and the display of products in the Home Furnishing & Décor Section of the store.
Organic Products Section
Product Range / Variety Satisfied Neutral Unsatisfied
Ambience & Cleanliness 91 31 8 130
Display 84 37 9 130
Total 362 214 74 650
79 63 45 46 55 45 5 12 40 130 130 130 2 Note: χ = 77.73, for v = 8, Significant Level at 0.10
fe 79 63 45 91 84 46 55 45 31 37 5 12 40 8 9
fo 72.4 72.4 72.4 72.4 72.4 42.8 42.8 42.8 42.8 42.8 14.8 14.8 14.8 14.8 14.8
fe-fo 6.6 -9.4 -27.4 18.6 11.6 3.2 12.2 2.2 -11.8 -5.8 -9.8 -2.8 25.2 -6.8 -5.8
(fe-fo)2 43.56 88.36 750.76 345.96 134.56 10.24 148.84 4.84 139.24 33.64 96.04 7.84 635.04 46.24 33.64
(fe-fo)2/fe 0.55 1.40 16.68 3.80 1.60 0.22 2.71 0.11 4.49 0.91 19.21 0.65 15.88 5.78 3.74 77.73
The null hypothesis is rejected as the χ2 value is greater than the chi square table value found at 8 degree of freedom which is 20.09. We can observe that the calculated value does not fall into the accepted (shaded) region and hence we reject the null hypothesis and accept the alternate hypothesis. This depicts that the customers who are satisfied with the product range are not as equal to the customers satisfied with the price range, service, ambience & cleanliness and the display of products in the Organic Product Section of the store.
Product Range / Variety Satisfied Neutral Unsatisfied Price Range Ambience & Cleanliness 85 39 6 130
Display 80 44 6 130
Total 340 250 60 650
76 61 38 48 62 57 6 7 35 130 130 130 2 Note: χ = 72.52, for v = 8, Significant Level at 0.10
fe 79 63 45 91 84 46 55 45 31 37 5 12 40 8 9
fo 68 68 68 68 68 50 50 50 50 50 12 12 12 12 12
fe-fo 11 -5 -23 23 16 -4 5 -5 -19 -13 -7 0 28 -4 -3
(fe-fo)2 121 25 529 529 256 16 25 25 361 169 49 0 784 16 9
(fe-fo)2/fe 1.53 0.40 11.76 5.81 3.05 0.35 0.45 0.56 11.65 4.57 9.80 0.00 19.60 2 1.00 72.52
The null hypothesis is rejected as the χ2 value is greater than the chi square table value found at 8 degree of freedom which is 20.09. We can observe that the calculated value does not fall into the accepted (shaded) region and hence we reject the null hypothesis and accept the alternate hypothesis. This depicts that the customers who are satisfied with the product range are not as equal to the customers satisfied with the price range, service, ambience & cleanliness and the display of products in the Home Jewellry Section of the store.
Through the analysis it was found that few customers satisfied with product range, some with the price; some with the service; some with the ambience and few of them with the display of the products.
Also when the respondents were asked to rank the factors like product range, price range, service, ambience & cleanliness and display of products, as shown in the 1st table and graph, it was observed that the Ambience & Cleanliness of the Store was the most important factor followed by display of products, product range, service and price range offered.
Since Ambience and Cleanliness of the store was the top priority for the customers to visit Fabindia, the store should try to maintain itself through regular cleaning. The store can take following steps –
Clean the store regularly by proper sweeping and sobbing the floor. All the shelves, furniture, counters, etc should also be cleaned regularly. Spray room fresheners in the trial rooms at least twice in a day. Play soft music so that customers can enjoy themselves. According to a study conducted by IIM Ahmadabad Students where in it was found that if the store plays music, customers tend to spend more time in the store which often leads to impulsive buying. It was noticed that customers used to take the merchandise outside the store to see how the colour looked. Proper lighting has to be done in order to enable customers to shop properly. The store can put double day & night bulbs in the trail rooms to help the customers with such problems. The store needs to clean the premises of the store also. The entry road to the store needs to be done properly.
The store can try to reduce the price of the merchandise or come up with discount schemes at least for its regular customers. The store should also try and keep more
variety of apparels so that the customer has enough options to choose from. It was noticed that 68% of the respondents preferred cotton clothes, so the store can produce more of cotton clothes than of polyester or synthetic ones. It was also noticed that the merchandise were not properly labeled with reference to the sizes. Customers often complained about colour bleeding and shrinkage of apparels bought. The store can provide exchanges or at least see to it that washing instructions are given by each and every employee to the customer they attend. The customers should be provided with shopping bags while they are shopping in the store.
Service staff needs to be properly trained. It was noticed that they had no proper information about the merchandise available. More of women sales staff should be employed as women are more comfortable when they are assisted by women sales staff than men. Most of the times, the customers were left unattended and the employees remained busy in stocking the apparels rather than assisting them. The store can adopt few motivational techniques like “Best Employee of the Month” to boost the employees. The organic products section has no sales staff to assist the customers with their queries.
1. V. Krishna Mohan, P. Pinkapani and MSR Sesha Giri (2008) “Dynamics of Retail Market” Service Marketing, ICFAI University Press (VI) 3, pp. 20 – 27. 2. Amit Kumar Sinha (2005), “Gender difference among adolescences as influences and impact of communication in the family purchase decision – a study”, Marketing Management, ICFAI University Press (IV) 4, pp. 50 – 59 3. Mdhurime Deb and Gautam Sinha (2007), “Importance of Service Quality,” Marketing Management, ICFAI University Press, (VI) 1, pp. 6 -15
4. Valsamma Antony (2009), Small retail stores strive on Customer Relations, Marketing Mastermind, ICFAI University Press, 68-70.
5. Sukanya Ashokkumar,(2005),Private Labels: Regional Consumer Perception, Advertising Express, ICFAI University Press, pp.55-59 6. Sunayna Khurana (2008), “Consumer Expectation & Perception – A Study of Retail in Hariyana,” Consumer Behaviour, ICFAI University Press, (III) 3, pp. 47 – 57 7. Paromita Goswami (2007), “Apparels Shopping Behaviour of Urban Indian Students,” ICFAI University Press, (VI), 4, Pg.. 47 8. Derry Law, Joanne Yip, “The Impact of Visual Merchandising on Consumer Decision Process for Intimate Apparels”. The report is available at – 9. http://www.scribd/pdf/ceo5ate90200700065/ 10. Sonia (2008), “Customer Perception towards Mega Mart”, Service Marketing, ICFAI University Press, (VI) 4, pp. 38 – 48
11. Kumar Gaurav (2008), “Impact of Relationship Marketing Strategy on Customer Loyalty”, ICFAI Journal of Marketing Research, (VII) 2, Pg. 7
12. Meera Mullick-Kanwar,(2005), The Evolution of Private Label Branding, Advertising Express, ICFAI University Press, pp.27-34 13. Abhigyan (2008), “Latest trends in consumer buying behaviour in Lifestyle”, Management Research, ICFAI University Press, (VII) 6, pp. 70 – 81 14. J.K. Nandi (2007), “An alternative mode to improve productivity in 21st century”, Marketing Research, ICFAI University Press, (VI) 1, pp. 7 – 15.
15. Hye-Shin Kim, Byuongho Jin, (2006), Exploratory study of virtual
communities of apparel retailers, Journal of fashion marketing and management, Emerald group publishing ltd. (X) 1, pp.41-55
16. Despina K (2008), Buyers satisfaction on purchasing decision and relative
contribution of promotions tools, ICFAI university marketing management, IUP, vol. 8 no. 1, pp.6-14.
http://www.ibef.org/artdisplay.aspx?cat_id=391&art_id=4705 http://www.goaretail.com/ http://www.chinadaily.com.cn/en/doc/2003-10/08/content_269953.htm http://bimtech-retail.com/blog/2008/india-retail-report-2009/ http://business.mapsofindia.com/india-retail-industry/challenges-facing-theindian-organized-retail-sector.html
In order to serve YOU better in future, we would like to know Your Preferences Questionnaire
Name: Sex: Age: Are you a Resident of Goa: 1. What type of clothes do you usually prefer? a. Formals b. Casuals c. Denims d. Traditional 2. What type of Fabric do you prefer? a. Cotton b. Synthetic c. Silks d. Polyester e. Any other_________________________ 3. How frequently do you purchase clothes? a. Once in a Fortnight b. Once in a month c. Once in 6 months d. Once in a year 4. On what occasions do you buy clothes / apparels? a. During Festivals b. Birthdays / Anniversaries c. To Gift d. Based on the need 5. Which are your preferred Brand / Store? __________________________________________________________________ 6. Rank the following factors on the scale of 1 – 5 based on your decision to visit Fabindia or buy the products. (1 being the least to 5 being the highest) a. b. c. d. e. Range of Products made available Price Range offered Service provided by the Staff Ambience & Cleanliness in the Store Display of the goods ( ( ( ( ( ) ) ) ) )
7. Is this your first visit Fabindia? a. Yes b. No
If yes, how did you get to know about Fabindia? a. Internet b. Word of Mouth c. Print Ads / Hoardings d. Gift Vouchers e. Any Other ______________________________________ If no, how often do you visit Fabindia? a. Once in a week c. Once in 3 – 4 weeks
b. Once in 2 weeks d. Once in a month
8. How much do you generally spend on clothes in Fabindia? a. 300 – 800 b. 800 – 1300 c. 1300 – 1800 d. 1800 – 2300 e. 2500 and above 9. How much do you generally spend on Home Furniture & Furnishings per year? a. 5000 – 10000 b. 10000 – 15000 c. 15000 – 20000 d. 20000 and above
10. In Goa did you visit both the outlets? a) Yes b) No 11. Which store do you often visit? a) Miramar i. And why? __________________________________________________________________ __________________________________________________________________ ___________________________________________________ 12. Rate your experience at Fabindia in terms of your satisfaction level for the following: Highly Satisfactory: 5 Unsatisfactory: 2 Products Range / Variety Apparels Dept. (Men & Women) Home Furnishing & Décor Organic Products Jewelry Satisfactory: 4 Highly Unsatisfactory: 1 Service provided by the Sales Staff Price Range Offered Average: 3
Ambience & Cleanliness of the Store
Display of Goods in the Store
13. Which products would you want Fabindia to launch? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
14. Do you have any suggestions to enable us to serve you better in future? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________
Thank You for your Valuable Time & Support…!!!!
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