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A Report on Measuring & Ensuring Customer Satisfaction
Avisek Dey 09bs0000498
Final Report on Measuring and Ensuring Customer Satisfaction
AVISEK DEY 09BS0000498
A Report submitted in partial fulfillment of the requirements of MBA program under Icfai University, Dehradun.
Submitted To: Company guide: Mr.Anshuman Banerji Faculty Guide: Mr.Shibashis Chakrobarty
I would like to acknowledge with thanks the assistance received from some people in completing this report. I would like to thank Mr. Kishore lodha (Eastern zone Commercial head), Ms.Neha Bhadrish (Store HR) for granting me permission to undertake the training in their esteemed organization. I cordially thank them for providing me with needful information on the related topic. They have helped me understand the objective of the company for giving this project. I sincerely thank them for their kind assistance and patience. I would also like to thank my company guide Mr.Anshuman Banerji (ASM) and Ms.Sweta Shashi (CSD-Manager) for their assistance and guidance at every step of project and work. I would also like to thank my faculty guide, Mr. Shibashish Chakrobarty, without his assistance and guidance I could not have even thought of doing this project. I sincerely thank him for imparting his wisdom and giving me timely feedback whenever I needed it. Lastly, I would like to acknowledge my gratitude to IBS Kolkata for giving me the opportunity to work on this project and to all my friends and colleagues with whom I have worked as a team during my training Period.
My project ―Measuring and Ensuring Customer satisfaction‖ Which I am undergoing in PRIL involves studying customer‘s behaviour with in the store and interaction with them to understand their needs and satisfaction level with the package (Product and service) offered by the company. It also deals with comparative analysis of different big retail players out in city Kolkata and finding key buying factors from customer perspective. It is very important to understand customer‘s needs to serve them better. and to understand needs management should understand key buying factors so that management could prepare themselves accordingly. Satisfying our customers is an essential element to staying in business in this modern world of global competition. We must satisfy and even delight our customers with the value of our products and services to gain their loyalty and repeat business. Customer satisfaction is therefore a primary goal of process improvement programs. So how satisfied are our customers? One of the best ways to find out is to ask them using Customer Satisfaction Surveys. These surveys can provide management with the information they need to determine their customer's level of satisfaction with their products and with the services associated with those products. Employees and the management of the store can use the survey information to identify opportunities for ongoing process improvements and to monitor the impact of those improvements. This paper includes details on designing your own customer satisfaction questionnaire, tracking survey results and example reports that turn survey data into useful information. An unsatisfied customer will tell seven to 20 people about their negative experience. A satisfied customer will only tell three to five people about their positive experience. So a retailer should always think in that way to satisfy their customer and delighting them with the services which competitors never think of.
About the Project
Following objectives were allocated to me before starting of the Project :
And to complete the project following tasks were identified before starting of the project
14th May during summer internship training at Pantaloon Retail (India) Limited in Kolkata. Primarily the study aims to give the reader an insight into the Indian retail industry. the study aims to measure the customer satisfaction level with package (service & product) offered by Pantaloon Retail (India) Limited. Thirdly the study involves finding of Key buying factors from the customer‘s perspective. It illustrates the importance of shoppers‘ satisfaction measurement scales in the retail business. The detail findings of which will be submitted in the final project. a survey has been conducted and data gathered to find the drivers of customer satisfaction. Different models employed to evaluate the industry are also covered in the first portion of this report. Secondly. The information gathered in the end will enable us to develop marketing strategies for Pantaloon Retail (India) Limited. Apart from looking at different aspects of the service. . 6 .EXECUTIVE SUMMARY The following study was conducted in between 15th Feb. The recent revolution and growth of the industry and the entry of many large business houses into this domain has ushered in a definite transition of the structure of the industry from its traditional outlook. A survey is being carried on a sample size of 175 shoppers as well as few department managers and staffs. In this paper the quality of the service offered analysed on the basis of gap model. In order to find this information separate questionnaires were prepared to fulfill the tasks that were identified at the start of the project.
Annexure……………………………………………………………………. Customer Satisfaction process in Store……………………………. Customer Satisfaction Excel Analysis for measuring Customer Satisfaction……………….. 5. SWOT Analysis of PRIL……………………………………………… 3... 6. Pricing and revenue generation of PRIL………………………….Conclusion…………………………………………………………………… 14. Data Analysis Excel Analysis for Key Buying factors…………………………… Factor Analysis for Key Buying factors…………………………… 9. Factor Analysis Cluster Analysis ……………………………………………………… Regression modeling for customer satisfaction……………………… 10.Bibliography………………………………………………………………… 7 . Company profile…………………………………………………. Analysis of Servqual Using GAP MODEL Literature Review……………………………………………….TABLE OF CONTENTS 1.. Buying Factors in the store…………………………………………. 2.Gap Analysis………………………………………………………………… 11. 15.. Future Group ……………………………………………………..... Line of business ………………………………………………….. Introduction to Research Sample design…………………………………………………….Recommendation…………………………………………………………… 13. Data Collection…………………………………………………… Methodology……………………………………………………… 8. Introduction Indian Retail Industry…………………………………………… Retailing formats in India……………………………………….Suggestions given by customers……………………………………………. 12.. 7. 4.
pdf Source : www.in/pdf/surveys_reports/indias_retail_sector. non-business use.‖ Retail is India's largest industry. The Indian retail industry is divided into organised and unorganised sectors. multi-storied malls and huge complexes offer shopping. it cannot simply ignore the competition from the conventional stores because of various factors like reach.Indian Retail Industry India‘s retail market which is seen as THE GOLDMINE by global players has grabbed attention of the most developed nations. that is.com 8 .cygnusindia.pdf 3 Source : www. US $8bn (36. entertainment and food all under one roof. Unorganised retailing.cci. Organized retailing refers to trading activities undertaken by licensed retailers. 1 2 Source : www. paan/beedi shops.000 crore INR approx). the local kirana shops.in/pdf/surveys_reports/indias_retail_sector. ushering in a revolution in shopping in India. Even though this concept has been in existence in few retail segments like pharmaceuticals and fuel. etc. and also the privately owned large retail businesses. Retailing in India is gradually inching its way toward becoming the next boom industry. accounting for over 10 per cent of the country's GDP and around eight per cent of the employment.000 crore INR approx. apparel etc to adopt this trend. The presence of 15 million kirana stores brings into light the very fact that the Indian retail industry is highly fragmented/ unorganized 3.cci. These include the corporate-backed hypermarkets and retail chains.e. those who are registered for sales tax. India‘s retail industry accounts for 10 percent of its GDP and 8 percent of the employment to reach $17 billion by 2010. hand cart and pavement vendors. it still remains to be a challenge for other segments like food and groceries. 1 ―Retailing includes all activities involved in selling goods or services directly to final consumers for personal. Modern retail has entered India as seen in sprawling shopping centers.2 Retail industry in India is at the crossroads. refers to the traditional formats of low-cost retailing. on the other hand. income tax. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. The whole concept of shopping has altered in terms of format and consumer buying behavior. This is no wonder to the one who knows that the total Indian retail market is US $350bn. for example. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. extending credit facility and other intangible factors like the human touch which are provided only by the conventional store. convenience stores. organized retailing in particular.) of which organized retailing is only around 3 percent i. (16. etc. Although the organized retailing in India is coming up in a big way. 00. owner manned general stores. The future of Indian retailing may even witness the concept of 24 hour retailing.
retail real estate development & management etc. 2. 2006 4 www.Comparative penetration of Indian retail (in %) Source: Ernst &Young.cci. the Great Indian Retail Story. 2006 Organized retail in India has the potential to add over Rs. It is estimated that it will cross the $650-billion mark by 2011. Organized Retail Penetration across categories (in %) Source: Ernst &Young.000 billion (US$45 billion) business by the end of Year 2010 generating employment for some 2.in/pdf/surveys_reports/indias_retail_sector.pdf 9 . with an already estimated investment of around $421 billion slated for the next four years 4. the Great Indian Retail Story.5 million people in various retail operations and over 10 million additional workforces in retail support activities including contract production & processing. supply chain & logistics.
5 billion market for the premium grooming segment.pdf 10 . If the consumption continues to grow this way it can be said that the local market would go through a metamorphoses of a change and the local stores would soon become the things of the past or restricted to last minute unplanned buying. India is the largest consumer of gold in the world with an estimated annual consumption of 1000 tonnes.cci. 650 billion. 5 www. as the market teems up with international brands and new entrants entering this segment creating an Rs. considering actual imports and recycled gold. The All India food consumption is close to Rs. 3 Gems and Jewellery retail The gems and jewellery market is the key emerging area. Modern retailing has helped the companies to increase the consumption of their products for example: Indian consumers would normally consume the rice sold at the nearby kiranas viz. and around 15-20 per cent of total urban food consumption. 1 Food and grocery retail The food business in India is largely unorganized adding up to barely Rs. Thus. However.Segment analysis 5 The structure of Indian retail is developing rapidly with shopping malls becoming increasingly common in the large cities and development plans being projected at 150new shopping malls by 2008. This means that aggregate revenues of large food players is currently only 5 per cent of the total Indian market.000 billion. as a superior quality rice (Basmati) is now available at almost the same price as the normal rice at a local kirana.9. The past few years has seen the sector aligning itself with global trends with retailing companies like Shoppers‘ stop and Crossroads entering the fray to entice the middle class.in/pdf/surveys_reports/indias_retail_sector.400 billion. 3 billion in the next three years. with other large players adding another 50 per cent to that.3. the way a product is displayed and promoted influences its sales. it has been noticed that the sale of Basmati rice has gone up by four times than it was a few years back. with the total urban consumption being around Rs. it is estimated that this segment would grow to Rs. grocers and tobacconist shops continue to co-exist with the modern formats of retailing. Kolam for daily use.300 billion. With the introduction of organized retail. the traditional formats like hawkers. However. 2 Apparel retail The ready-mades and western outfits are growing at 40-45 per cent annually. accounting for a high proportion of retail spends. The market for jewellery is estimated as upwards of Rs.
RPG group‘s Health & Glow is already in this category. The existing size of this sector stands at an estimated US$ 4. 6 Book retail The book industry is estimated at over Rs.5 billion. In the south.1. with 15 per cent of the 51 lakh retail stores in India being chemists. apparel etc).cci. 98. Apollo pharmacies. is estimated at Rs. and appliances like washing machines.pdf 11 .10 billion).5 Billion with organized retailing being at 5 per cent. as per this Images-KSA Study. A few corporate who have already forayed into this segment include Dr More pen (with life spring and soon to be launched Tango). Medicine Shoppe. This segment is seen to be emerging with text and curriculum books accounting to about 50 per cent of the total sales.11 billion of which about 36 percent is consumed by the pirated market and organized music retailing constitutes about 14 percent. 30 billion out of which organized retail accounts for only 7 per cent (at Rs. and the recently launched CRS Health from SAK Industries.6 6 www.in/pdf/surveys_reports/indias_retail_sector. air conditioners (A/Cs).4. audio systems. Pharmaceutical retail The pharmacy retailing is estimated at about Rs. 5 Music Retail The size of the Indian music industry. 300 billion. 7 Consumer durables retail The consumer durables market can be stratified into consumer electronics comprising of TV sets. The gifting habit in India is catching on fast with books enjoying a significant share. though it is not a pure play pharma retailer but more in the health and beauty care business. thus expecting this sector to grow by 15 per cent annually. equivalent to Rs.4 from Global Health line Pvt Ltd. Pharma retailing will follow the trend of becoming more organised and corporatised as is seen in other retailing formats (food. VCD players and others. microwave ovens.2.
Retailing Formats in India7 Modern retailing has entered India in form of sprawling malls and huge complexes offering shopping. The Government also stands to gain through more efficient collection of tax revenues.in/pdf/surveys_reports/indias_retail_sector. July 16.cci. Along with the modern retail formats. The modern retail formats are encouraging development of well-established and efficient supply chains in each segment ensuring efficient movement of goods from farms to kitchens. 2006 However. efficient merchandising and timely promotional campaigns.pdf 12 . It's no longer about just stocking and selling but about efficient supply chain management. greater enforcement of taxation mechanisms and better labour law monitoring system. The organized segment typically comprises of a large number of retailers. from discount stores to supermarkets to hypermarkets to specialty chains. developing vendor relationship quality customer service. entertainment. leisure to the consumer as the retailers experiment with a variety of formats. Source: IT Retailing: Are You In The Loop?. kiranas still continue to score over modern formats primarily due to the convenience factor. 7 www. which will result in huge savings for the farmers as well as for the nation.
the non-store retailing channels are also witnessing action with HLL initiating Sangam Direct.in/pdf/surveys_reports/indias_retail_sector. adding food retail Corner shops Quasi-mall. At present. thereare 50 hypermarkets operated by four to five large retailers spread across 67 cities catering to a population of half-amillion or more. In the coming years it can be said that the hypermarket route will emerge as the most preferred format for international retailers stepping into the country. food retail Hypermarket Considering moving to selfservice Hypermarket Suburban discount store Small fashion stores Aggregation of Kiranas Aggregation of Kiranas Cash and Carry 8 www. Corporate Catalyst India A report on Indian Retail Industry List of retailers that have come with new formats 8 Retailers Shopper‘s Stop Ebony Crossword Pyramyd Pantaloon Subhiksha Big bazaar Vitan Globus Bombay Bazaar Efoodmart Metro Current Format Department Store Department Store Large bookstore Department Store Own brand store Supermarket Supermarket Supermarket Department Store New formats. Experimenting with Quasi-mall Quasi-mall.pdf 13 . a direct to home service.. Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the next four to five years. smaller outlets.cci.
Traditionally, the small store (kirana) retailing has been one of the easiest ways to generate selfemployment, as it requires minimum investments in terms of land, labour and capital. These stores are not affected by the modern retailing as it is still considered very convenient to shop. In order to keep pace with the modern formats, Kiranas have now started providing more valued services like stocking ready to cook vegetables and other fresh produce. They also provide services like credit, phone service, home delivery etc. The organized retailing has helped in promoting several niche categories such as packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory products and convenience and health foods, which are generally not found in the local kirana stores. Looking at the vast opportunity in this sector, big players like Reliance and K Rahejas has announced its plans to become the country's largest modern retainers by establishing a chain of stores across all major cities. Apart from metro cities, several small towns like Nagpur, Nasik, Ahmadabad, Aurangabad, Sholapur, Kolhapur and Amravati as witnessing the expansion of modern retails. Small towns in Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail because many small cities like Nagpur have a student population, lower real estate costs, fewer power cuts and lower levels of attrition. However, retailers need to adjust their product mix for smaller cities, as they tend to be more conservative than the metros. In order for the market to grow in modern retail, it is necessary that steps are taken for rewriting laws, restructuring the tax regime, accessing and developing new skills and investing significantly in India 9
Pantaloon Retail (India) Limited was incorporated as Manz Wear Private Limited by Mr. Kishore Biyani on 12 October 1987, converted into a public limited company in September 1991, renamed as Pantaloon Fashions (India) Limited a year later and thereafter into Pantaloon Retail (India) Limited in July 1999. The company is headquartered in Mumbai. Mr. Kishore Biyani is the Managing Director. Pantaloon Retail forayed into modern retail in 1997 with the launching of fashion retail chain, Pantaloons in Kolkata. In 2001, it launched its first set of Big Bazaar stores in 2001 in Kolkata, Hyderabad and Bangalore, a hypermarket chain that combines the look and feel of Indian bazaars, with aspects of modern retail, like choice, convenience and hygiene. This was followed by Food Bazaar, food and grocery chain and launch Central, a first of its kind seamless mall located in the heart of major Indian cities. Some of its other formats include collection I (home improvement products), E-Zone (consumer electronics), Depot (books, music, gifts and stationary), aLL (fashion apparel for plus-size individuals), Shoe Factory (footwear) and Blue Sky (fashion accessories). It has recently launched its e-retailing venture, futurebazaar.com.Today Pantaloon Retail (India) Limited, is India's leading retail company with presence across multiple lines of businesses. The company owns and manages multiple retail formats that cater to a wide cross-section of the Indian society and is able to capture almost the entire consumption basket of the Indian consumer. The company operates through 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employs over 30000 people10. The USP is primarily on offering fresh fashion at affordable prices. Pantaloon Retail was awarded the International Retailer of the Year 2007 by the US based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India‘s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to cater to the entire Indian consumption space. The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail. Future Capital Holdings, the group‘s financial arm provides investment advisory to assets worth over $1 billion that are being invested in consumer brands and companies, real estate, hotels and logistics. Other group companies include, Future Generali, the group‘s insurance venture in partnership with Italy‘s Generali Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics and distribution solutions to group companies and business partners and Future Media, a retail media initiative. Future Group‘s joint venture partners include, US-based stationery products retailers, Staples and Middle East-based Axiom Communications The group‘s presence in Leisure & Entertainment segment is led through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family entertainment centers, F123. Through its partner company, Blue Foods the group operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. 11 Future Group‘s vision is to, ―deliver Everything, Everywhere, Every time to Every Indian Consumer in the most profitable manner.‖ The group considers ‗Indian-ness‘ as a core value and its corporate credo is - Rewrite rules, Retain values. ―Future‖ – the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn, our ability to evolve. We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socio-economic development for our customers, employees, shareholders, associates and partners.
Our customers will not just get what they need, but also get them where, how and when they need. We will not just post satisfactory results, we will write success stories. We will not just operate efficiently in the Indian economy, we will evolve it. We will not just spot trends, we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow. It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing. Rewrite Rules. Retain Values. Group Vision Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.
Group Mission 12
We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses. We shall infuse Indian brands with confidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we do. We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful. Core Values Indianness: confidence in ourselves. Leadership: to be a leader, both in thought and business. Respect & Humility: to respect every individual and be humble in our conduct. Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and information. Valuing and Nurturing Relationships: to build long term relationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability: to be flexible and adaptable, to meet challenges. Flow: to respect and understand the universal laws of nature.
Line of business
Home solution retail (India) Ltd.
E-Zone Collection I Furniture bazaar
Future Brands limited
Future media (India) Limited
Pantaloon retail (India) limited
Future capital holdings limited
Future generalli Insurance Limited
Future Bazaar India limited Big Bazaar Future Value retail Limited Food Bazaar
pantaloonretail.in 19 .Line of business of PRIL: PANTALOON RETAIL (INDIA) LIMITED 14 Wellness (Cosmetics) BLUE SKY (Fashion Accessories) MELA (home Designing) Apparels Depot (Stationary) Watch Sunglass MEN WOMEN KID Casual Ethnic Formal Accessories 14 Source:www.
Reliance Trends. UMM etc. Pantaloon & Central is facing competition from Westside (Trent). 2. Megamart (Arvind). 3. Getting license agreement of smaller regional brands. 20 . 2. Foreign players like Carrefour. Product availability Fashion Friday. Store renovations of older stores not done. 8. 5. 5. Stand alone stores of other brands like Bare. Economic slowdown and scanty rainfall which has major impact on Indian Economy. Max ( Landmark group). 6. Dedicated customer service desk. Loyalty program of competitors is more effective due to better scheme and merchandise. 6. Floor level Customer Relations Executives not having proper product. 4. Product of different price range. Shoppers Stop. Opportunity Threat 1. Merchandise and product focus not consistent and clear 1. Consumer spending on nonessential fashion items. More effective online shopping for garments. 3. 5. Shrinkage rates are higher than industry norms. Loyalty program Stores location. 7.SWOT ANALYSIS OF PRIL Strength Weakness 1. store etc knowledge due to lack of proper training. Suiting brand from Future group can be feasible. Tommy. Globus etc. 4. Geographical Expansion: Untapped market in terms of tier II and tier III cities. Untapped segments such as ethnic wear. Walmart lined for their Indian operations 1. Tesco. Custom Tailoring business untapped. 2. 2. 3. Low employee retention levels at shop floor level due to better pay package by competitors. Luxury segment with brands like Gucci. 4. Armani etc. 3. Organic cotton wear etc. HyperCity (Shoppers Stop). Competitive rivalry in the industry like Big Bazaar is facing competition from Fashion Yatra (Trent Ltd). 6. garments etc have been reduced significantly. Lifestyle.
Thus. . it is worthwhile to map how the PRIL earns. However. In terms of overall revenue generation pattern.Identified services the prices of which were higher and established reasons thereof.PRICING AND REVENUE GENERATION IN Pantaloon Retail (India) Limited. the Store closely corresponds to its counterparts. The pricing objectives are implemented in PRIL through the following sequence of steps at the hospital: . . A major component of service cost is employee time. is rarely appropriate to a service provider. margins and competitive parity based pricing techniques. 109F etc as a selling percentage 21 .Identified its competitors. The second source of revenue to the hospital is from selling Non pantaloon brands like Biba. 2001). in which all relevant component costs are identified. 1989). One mobile. Pricing is the only marketing mix that brings funds (revenue). It has adopted pricing strategies based on the patronage and relationships which are more suited to services than the cost. calculated and a markup added. PRIL has the system of SIS (Shop in shop). Indian consumers are remarkably more price-conscious (Business Today. Anabelle. In the SIS approach. While pricing of products is relevant to customer anywhere. . the cost based pricing formula commonly used in manufacturing. Thus.Flagged the services where price rise was inescapable. Wirtz and Keh. The value of human time particularly of professionals is hard to calculate or estimate. The rest six retailing mix elements involve only outgo of funds (Monroe. The first source of revenue to the hospital is from the Shoppers coming to the shop. company earns money from the brand not owned by them by providing the facility and space as fixed monthly rent plus certain percentage over the sold amount after a particular amount.Made a competitive price benchmark. interestingly. approximately. Production of services involves a relatively higher ratio of fixed costs to variable costs (Lovelock. 1998). . Cost based pricing in services thus. Since pricing is the main tool of revenue generation in a subsidy-free Company .Offered multiple payment options. 50% of the revenue from a green card holder is earned. Cost based pricing is even less favored as the tracking and identification of service production cost elements get more difficult. SISs available in pantaloon Kakurgachi are Bodyline. is potential threat to relationship building with customers.
22 . Besides the information processing perspective. Internal factors: Culture Taste & preference Previous experience…and several factors. It is consumer attitudes that are usually named as the major factor in shaping consumer behaviour and a wealth of studies is available on the topic of how attitudes can predict behaviour External factors: Price of the product Quality of the product. Services offered by the store. And to do so company need to do in-depth market research. marketing analyses consumer behaviour by employing a psychologically grounded concept of attitudes. Store location. Internal factors can‘t be controlled by the company but they can increase footfall by fulfilling all the external factors.Buying factors in a Store: When buying a product or service most people go through stages before making a decision: What are they looking for? How good is the product? How much money are they willing to pay? When do they need the product or service? What makes a product more competitive than others in the market? The consumer buying process is a series of incidents. They need to know their customer base as well as their priority to serve them to their expectation. Company policies Store ambience Product variety Product availability. Many internal and external factors have an impact on the buying decisions of the consumer.
A store like pantaloon is dealing with several brands under same category. All human actors who playa part in service delivery and thus influence buyer‘s perceptions. Customer perception Product cost + service cost +profit=product Selling price Though all the services are delivered for free of cost to all customers. 23 . A collection containing a variety of sorts of things give customers to pick what they like. Some are their owned. b) Price: price plays most important role in deciding the value of money. some they have taken on contract basis. So it has to be lined up properly with the product features as it is consumed instantly with in the store itself.Customer satisfaction process in store: a) Product assortment: This is one of the important parameter of customer satisfaction. c) Service delivered: Employees play an important role in providing satisfactory service. So company needs to maintain a big range of product on the basis of the price. Country like India where people are so price sensitive that they changes their buying decision on the basis of the price of the product. All the Services which are shown in below picture are provided for free from the store side.
Services offered by the store: Overall factors behind customer satisfaction: 24 .
Impact of customer satisfaction:
Analysis of SERVQUAL using gap models
Model of service quality gap Parsuram et al, curry, 1999; luk& Layton 2002
Theoretical explanation of the gap model
The first gap is the discrepancy between customer expectations and management perceptions of these expectations. GAP 1 arises from management‘s lack of full understanding about how customers formulate their expectations on the basis of number of sources: advertising, past experience with the firm and its competitors, personal needs, and communications with friend. Strategies for closing this gap include improving market research, fostering better communication between management and its contact employees, and reducing the number of levels of management that distance the customer. The second gap results from management‘s inability to formulate target levels of service quality to meet perceptions of customer expectations and translate these into workable specifications. GAP 2 may result from a lack of management communication to service quality or a perception of the unfeasibility of meeting customers‟ expectations; however, setting goals and standardizing service delivery tasks can close this gap. The third gap is referred to as the service performance gap, because actual delivery of the service does not meet the specifications set by management. GAP 3 can arise for a number of reasons, including lack of teamwork, poor employee selection, inadequate training, and inappropriate job design. Customer expectations of the service are formed by media advertising and other communications from the firm. GAP 4 is the discrepancy between service delivery and external communications in the form of exaggerated promises and lack of information provided to contact personnel. Customers use some criteria to form their judgments of service quality, which are based on a comparison between expected and perceived service. The gap between expected and perceived service is called GAP 5 which is a measure of service quality; satisfaction is either negative or positive.
INTRODUCTION OF RESEARCH
Research process is a series of systematic steps that are followed to solve a business problem. It is the framework of the entire plan-of-action. It clearly describes crucial issues like the study‘s purpose and objectives, the type of data needed, the technique to be used for selecting samples, data collecting method, analyzing it, managing costs and other aspects that are essential for conducting business research. SAMPLING DESIGN:Sampling is an essential part of the business research process. Sampling is the technique of selecting a representative part of a population for the purpose of determining the characteristics of the whole population. During the research, Simple Random Sampling is used to collect data from the shoppers because the target population is small, homogeneous, and the sampling frame is clearly defined.
DATA COLLECTION:Business research generally uses two types of data: Primary data- It is collected directly from the respondents using data collection methods like survey interviews, questionnaires, measurements, direct observation, or tabulation. Secondary data- It is the data that which already exists and is collected by some other person or organization. Sources of secondary data include websites, journals, books, etc
This research uses a judicious mix of primary and secondary data to optimize the quality of research findings within the allotted time and money. Primary data
Secondary data is collected here by:
1. Internal records of various department of the company . Data collected from floor staffs and managers. 2. Company’s annual magazine and miscellaneous reports
1. Books and periodicals 2. Websites 3. Media sources 4. Commercial sources 5. External Experts
The method of collecting information by asking a set of pre-formulated questions in a predetermined sequence in a structured questionnaire to a sample of individuals drawn so as to be representative of a defined population is known as survey research. Survey method used in research is descriptive in nature. Although it is quantitative in nature, it also covers some qualitative aspects like research concerning customer‘s satisfaction levels.
Unlike the methods discussed earlier, observation methods do not involve any verbal communication with the respondents. It involved following customer‘s movement and listening discussion with the co-partner regarding store related issues. It also involved visiting other retail stores in the city like Westside (mani Square), Shopper stop (City center)
The highest number of respondents falls in the age group 20-25.DATA ANALYSIS Footfall analysis according to age: 13% 22% 38% 18-25 26-35 36-45 >45 27% Company needs to know their customer base well to run it successfully. 30 . It can be deduced that most of the consumers who visit retail outlets regularly are the youth. Key buying factors 12% 11% 12% Price Service quality location Ambience 9% Promotional offer Green card discount Product Exchange policy value for money 12% 14% 9% 15% 6% From the above Pie chart we can see that 14% people has said that green card discount is the primary factor behind shopping here in this store. They make up almost 40 % of the population who shop at Kakurgachi store. Where as 15% people has said that promotional offer is the main factor.
So company need to take it seriously and need to restructure the policy Issues regarding green card: Discount is not given if customer is not carrying the card. A person of age group 18-25 will look for trendy product.5 yrs. Everyone is not happy with the green card discount structure. Company should issue those cards from Zonal Office so that it will reach customer place as soon as possible. That means they are price sensitive. He/she is ready to do some experiment with his/her looks where a person of age group above 50 would like to stay with in his comfortable zone. Company should take up this regular problem on high priority basis. As per the daily sales report almost 40-50% of the income is generated from green card holders. He will look for some reliable and durable product. Issuing duplicate card and Friday fashion sms should be sent to all registered customer on time.So from here we can say shoppers of pantaloon are mainly concerned for the discount. 31 . Sometimes it does not reach even after 1 or 1. Age wise analysis for key buying factors Age group-18-25 11% 12% 17% Price Service quality location 6% Ambience Promotional offer Green card discount Product 2% 5% 11% 17% 19% Exchange policy value for money Consumer behaviour heavily depends on the age. Though the Initial price is bit high but after the discount it is becoming very much affordable for more or less all the customers. Floor staff does not communicate conditions for getting discount properly while making the green card. Duplicate card and updated takes more time than communicated (45 days) to reach customers place.
Analysis says in this people are more cautious about the product. They look for the product as well as price. They are not so much bothered about the location and service quality.They are more likely to move to get the best appropriate product. Age group-35-45
In this age group people look for value of money & service quality as they are more conscious about the value added service and quality..They don’t like to experiment with the product..They do like to stay in their comfortable zone but sometimes they do it as per the well wisher’s advice. 32
With this Pie chart we can see that in this age group people are so bother about the price but they look for the quality ,Ambbience as do like peace while shopping as shopping is not a regular routine for them it‘s a program what they execute when it is required. Gender wise analysis for key buying factors Gender : male
Above pie chart says that males are free to move they are not so much about the location of the store as they don‘t have such physical constraints. They are price and product sensitive. They are more concerned about the discount and value of money.
Analysis says female are more price sensitive and Almost 14% female respondents said they shop here because of flexible exchange policy. It proves that they take longer time than male to fix their mind regarding product. From here we can say that they spend more time than a male.
SPSS ANALYSIS FACTOR ANALYSIS:
Factor analysis is primarily a data reduction and summarization technique. While, doing research, a large amount of variables are usually present. These variables have to be correlated and they have to be reduced to manageable level for convenience and better analysis. Thus factor analysis is used to establish relationships among sets of many interrelated variables in terms of few factors. Factor analysis is an interdependence technique in which all variables are simultaneously considered and each related to all others. With factor analysis the researcher can first identify the separate dimension of the structure and then determine the extent to which each variable is explained by each dimension. Once, these dimensions and the explanation of each variable are determined, the two primary uses of factor analysis- summarization and data reduction can be achieved. In summarizing the data, factor analysis derives underlying dimensions that describe the data in a much smaller number of concepts than the original individual variables. Data reduction can be achieved by calculating scores for each underlying dimension and substituting them for original variables.
IMPORTANCE OF FACTOR ANALYSIS:
To identify underlying factors that explains the correlations among a set of variables. To identify a new, smaller set of uncorrelated variables to replace the original set of correlated variables n subsequent multivariate analysis like regression. To identify smaller set of salient variables from a larger set for use in subsequent multivariate analysis. Factor Analysis can be applied for market segmentation for identifying the underlying variables on which to group the customers. It can be also applied in the case of product research as to determine the brand attributes that influence consumer choice.
Objective of Factor Analysis in this Study:
In this study factor analysis is used for identifying the underlying factors or variables that influence a customer to buy a product in Kakurgachi Store.
Steps in Factor Analysis:
Formulating the problem Constructing the correlation matrix Determining the method for factor analysis. In this study Principal Component Analysis method has been sued. This approach considers the total variance in the data. Determining the number of factors Interpreting the factors Calculating the factor scores
THE KEY BUYING FACTORS OF CUSTOMERS AT THE TIME OF BUYING PRODUCT
Price of the product Service quality Product quality Value for money Ambience Promotional offers Green Card discount Exchange policy Location There are other factors also which play important role but alone they cant impress customer to go for buying
19 2.57 3.They are like Staff knowledge Staff assistance etc. The KMO measure varies between 0 and 1.912 .656 .531 . High values between . Here we see that more or less the data samples show uniformity.94 Std.98 2.0 indicate factor analysis is appropriate. DESCRIPTIVE STATISTICS: The table shows the mean of different variables with their standard deviation. Deviation . The higher the value of standard deviation more is the data fluctuation observed in sample data.774 Analysis N 175 175 175 175 175 175 175 175 175 KMO TEST: The KMO measure of sampling adequacy is an index used to examine the appropriateness of factor analysis. Descriptive Statistics Descriptive Statistics Mean PRICE AMBIENCE PROMDISC GCDISC VALMON LOCATION SERVQ STAFF PRODUCT 2.5 and 1. A score close to zero implies that the sum of partial correlations is large relative to the sum of correlation indicating that the diffusion in the pattern of correlation. Values below .909 . A KMO measure close to 1 indicates that the pattern of correlation is relatively 37 .89 3.5 imply that factor analysis may not be appropriate.991 .295 .973 .11 2. from these we can infer that the variables which are here to describe the sample size of 175 is more or less uniform in their response – this shows the researcher the path that it is going in the right direction.50 3.23 3.319 1.04 3.
we want this test to be significant (i.compact and hence factor analysis should yield distinct and reliable factors. Chi-Square Bartlett's Test of Sphericity Df Sig. KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett’s test is highly significant (p<0.5 as acceptable. KMO measure is . therefore. For factor analysis to work we need some relationships between variables and if the R-matrix were an identity matrix then all correlation coefficients would be zero. A significant test tells us that the R-matrix is not an identity matrix.7 i. there are some relationships between the variables we hope to include in the analysis. the model is assumed to be appropriate at least 58.58. Here. . have a significance value less than 0. Kaiser recommended accepting values greater than 0. factor analysis is appropriate. Therefore.e.254 31s . Bartlett’s measure tests the null hypothesis that the original correlation matrix is an identity matrix.7%.e. For these data.000 38 .001) and therefore. 442.05).587 Approx.
959 .ROTATED COMPONENT MATRIX: The table shows the rotated matrix.868 . Factor loadings are simple correlation between the variables and the factors. Rotated Component Matrix(a) Component 1 PRICE AMBIENCE PROMDISC GC Discount VAL of MONEY LOCATION SERV Quality STAFF PRODUCT Extraction Method: Principal Component Analysis.755 . .879 2 3 .658 . The factor loadings are rotated using Varimax rotation method to minimize the biasness due to other variables.573 . The matrix contains the loadings of each variable onto each factor.988 39 .589 .811 .929 -.977 -. At this stage SPSS has extracted three factors. Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 4 iterations.
279. Scree Plot 6 5 4 3 2 1 Eigenvalue 0 -1 1 2 3 4 5 6 7 8 9 Component Number 40 . They can be quite useful.895. and1. These weighted scores are called factor scores.SCREE PLOT A Scree Plot is a plot of Eigen values against the number of factors in order of extraction. 2.705 hence three factors were selected. The curve up to the first two variables is quite steep after which the curve becomes smooth and flatter showing that the latter variables have less significance. The Scree Plot shows that the first 3 factors with Eigen values more than 1 have been selected with Eigen values of 4. It is possible to score every case in the analysis according to its value on the variables as they load on each of the rotated factors. and the values computed for each case can be saved as a separate fie for input into other analysis. depending on the research.
41 . 2. The Identified factors are 1. As these products are not available any where apart from PRIL stores. This will help Non pantaloon brands to show their collection to many customers as because previous incident will increase footfall also in the store. Service quality . Products available in store are available in stand alone store apart from private brands products.Implication of factor analysis By doing factor analysis of collected data I have got three major stable factors having Eigen Value more than 1. Service quality . price So by using factor analysis the variables have been clubbed under four baskets. Factor 2 Product is not the main concerned variable here main variable is convenience. In retail Industry every business house can provide products but the extra benefits that make the difference. Green card discount 3. So to keep the market share maximum company needs to provide extra benefits which in turn will increase sales volume and repurchase intention. Value for money. Factor 1: The variables promotional discount.Location 2. namely Factor 1. This is mainly important for the private labeled brands.Location have been clubbed together to form this factor. So company can check their profit margin to increase sales volume as well as value for money which in turn will increase customer satisfaction and loyal customer base and repeat purchase intention. and 3. Factor 3:Staff assistance. Factor 2 : Ambience.These factors comprise of different variables. Value of money. Factor 1 : promotional discount.
Factor 3: The variables price. Like what Wal-mart do. the standardized Cronbach's α can also be defined as where N is the number of components (items or testlets). Reliability check for different factors Cronbach's alpha is a measure of internal consistency. that is. They always check whether they are getting extra or not. People who are coming to the store for shopping that are always concerned about the value added services. This program in Wal-mart is called as Value of the day.com 42 . So Instead of running promotional offer in single section for a week company can keep on changing the offers every day. test scores. If we analyze these factors we can find one thing in common that is extra benefit. 15 www. and is the variance of component i. So effective weekend marketing activities play an important role to attract customer and give them a reason to buy products from the store. Staff assistance have been clubbed together to form this factor. Definition15 Cronbach's α is defined as where N is the number of components (items or testlets). equals the average variance and is the average of all covariances between the components.wkipedia. how closely related a set of items are as a group. is the variance of the observed total Alternatively. They are mainly concerned about the value for money. Price is another important factor in Indian business as Indian people are very price sensitive.
6935. 43 . suggesting that the items have relatively high internal consistency. Factor 2: N of Items-3 Alpha=0.8288 Cronbach's alpha can be viewed as a measure of how well the sum score on the selected items capture the expected score in the entire domain.9038. even if that domain is heterogeneous All the calculated scores of alpha is more than 0.9038 The alpha coefficient for the four items is 0.6935 The alpha coefficient for the three items is .7 that indicates the collected data are highly reliable and items in those factors are consistent. suggesting that the items have relatively high internal consistency. Factor 3: N of Items-2 Alpha=0.Factor 1: N of Items-4 Alpha=.
Some call it a customer revolution. others a quality revolution. as well as benchmarking against competitors. joining and adopting the religion does not insure that the real objective of producing customer satisfaction will be obtained. then offer them the right products. Customer satisfaction takes a very important place in Marketing.Customer satisfaction What is customer satisfaction? We are in the midst of a revolution in business. Know the problems of your customers and what they are looking for. As much as you think that your marketing strategies should help you generate sales. others a service revolution. If a customer of yours is satisfied with one of your products or services. Satisfaction of the product is evaluated by content. From the First factor where in customer enters into the store till he or she Purchases and moves out of the parking for his or her way should be 16 Source :www. Products that the customers receive are also an area that was assessed because of a high value that is placed on satisfaction in the product. chances are this customer will purchase more of your products or services. Customers‘ purchasing habits would include such issues as: who do they usually go shopping with. display and delivery of the product. respondents‘ experience of various shopping centres or service organizations. This movement toward quality has produced significant benefits but just like other business fads. Psychographic portraits of many customers allow customer segmentation in terms of purchase frequency. how often. etc. There are a lot of elements involved with Customer satisfaction. It is the most important factor that creates repeated customers. how long do they spend in a shop. which will increase your revenue. think about how the same marketing strategies could help you achieve Customer satisfaction. Some people know it but do not realize its importance. in order to have your new or existing customers buy more from you.cignusindia. IMPORTANT FACTORS: The Store covers various aspects to fulfill the need of customer as well to Making the shopping a great experience for them. Therefore. What exactly customer Satisfaction is??16 Customer satisfaction is a key ingredient to the success of any business.com 44 . Organizations are attempting to obtain increased customer satisfaction by focusing on the quality of their products and the service provided. you will have to follow techniques that work.
other staff complaints. Judgment is made about people based on the performance image they display. The better we groom ourselves. This is the place where the customer service executives have to be very polite. patient. Even from security staff to Housekeeping everyone should be well groomed.remember able one and a great experience for the customers. Where in customer come along with there complaints. The customer may look in for something specific or have a question about a product. And retain them and convert them into our loyal customer. It has been observed in the training period that the percentage of customer complaint in PANTALOONS is 4%. our store or our policies customer may be looking around. Then is the customer interaction which is very demanding and plays a very crucial role in any retail store. Sometimes customer could have dissatisfaction against our system. 1. Also Customer Service desk which is specially mend for the judgment of customer behaviour. Which is not good for the company as we have risk of loosing those 10 other customers also? The customer retention leads to Loyalty Profit Repurchases Life time value/References Positive word of mouth advertisement. 2. Every customer interaction is an opportunity for us to contribute to customer satisfaction. As dissatisfied will tell other 10 more customers. Wrong billing. If we are able to handle solution to them we win a loyal customer to life. As we all know that First impression is the last impression so its important for every retailer to package its staff. Exchange. the more we are pleasing to our customers. Effective and courteous interactions about all our customers go a long way in ensuring success of our store. and understand the problem of customer and try to resolve them so that we don‘t loose that customer. Physical appearance plays a vital role in determining how others perceive us. 45 .
And when we see gender wise we can see that out of 12 8 are female.Out of 175 respondents only 12 are very much unsatisfied with the price. And number of over satisfied people is also more in >45 than any 18-25 group. It proves that they are more price sensitive than male. Because people of age group 1825 is quantity concerned not quality.Price is one of the most important factors in customer satisfaction. 46 .Measurement customer satisfaction level on different attributes 1. From here we can understand that how the impact of a factor changes with age group and gender. 2.
But still 7 respondents are not happy with the promotional offer. There is no as such as such remarkable offer in wellness department etc. But if we see it age wise we find youths are not that much of happy ass compared to >45 age group.Now here in case of service quality the satisfaction level has changed again. 4. Overall 27 respondents are over satisfied with the service which is very good. The probable reasons for that Respondent wanted the particular offer in the dept from where he is buying. promotion V ery s atis fied 7 21 65 52 30 S atis fied 0 7 39 Neutral 7 14 26 31 17 male 1 5 21 Uns atis fied 3 4 15 V ery Uns atis fied 2 11 14 13 9 35-45 11 8 > 45 1 0 15 21 13 15 8 18-25 13 5 25-35 over all female From this pie chat we can deduce that almost every one is happy with the promotional offer as it runs through the year in different forms. They do it department wise. Some of times store does not run any overall offer. G reen c ard V ery s atis fied 7 22 51 50 45 S atis fied 3 8 23 24 22 Neutral 4 14 28 26 23 male 2 4 12 11 8 18-25 Uns atis fied 2 7 16 16 8 25-35 V ery Uns atis fied 2 8 12 13 7 35-45 1 3 11 10 7 > 45 over all female 47 . 3.
Company need to be very cautious about this group. P roduc t V ery s atis fied 3 21 52 69 30 S atis fied 2 9 29 27 13 Neutral 1 12 23 42 17 male 1 7 13 27 16 18-25 Uns atis fied 1 5 16 17 12 25-35 0 6 15 17 9 35-45 V ery Uns atis fied 1 3 8 8 8 > 45 over all female From the tabulated data depicted above and responses of the consumers. it is evident that a good number of target consumers are satisfied with the stores at large. 6. Such consumers form the potential market that the companies must strive to attract. there are those who are unsatisfied or who have never visited the store at all.5. 48 . However. This 22% can harm the overall business profit. But its not displayed properly. Value of money V ery s atis fied 14 29 57 49 26 S atis fied 6 10 32 21 11 Neutral 8 19 25 28 15 male 4 9 14 10 8 18-25 19 12 9 25-35 4 35-45 8 5 > 45 Uns atis fied 5 6 10 15 V ery Uns atis fied 4 9 18 1 5 over all female Again the data has changed almost 75 respondents are satisfied with the value of money and 43 respondents are dissatisfied with the value of money. They have lower range product in mens casual section. More over company need to increase product line as per price.
This goes to show that Pantaloons is doing many things right. quality. factor analysis derives underlying dimensions that describe the data in a much smaller number of concepts than the original individual variables. doing research. Values below . seem to be very appealing and also translate into sales and repeat purchases. product variety etc. pricing. With factor analysis the researcher can first identify the separate dimension of the structure and then determine the extent to which each variable is explained by each dimension. the two primary uses of factor analysis. The KMO measure varies between 0 and 1. High values between . a large amount of variables are usually present. Data reduction can be achieved by calculating scores for each underlying dimension and substituting them for original variables. A score close to zero implies that the sum of partial correlations is large relative to the sum of correlation indicating that the diffusion in the pattern of correlation.5 and 1.. Kaiser 49 .5 imply that factor analysis may not be appropriate. In summarizing the data.0 indicate factor analysis is appropriate. Thus factor analysis is used to establish relationships among sets of many interrelated variables in terms of few factors. Factor analysis is an interdependence technique in which all variables are simultaneously considered and each related to all others. these dimensions and the explanation of each variable are determined. These variables have to be correlated and they have to be reduced to manageable level for convenience and better analysis. KMO TEST: The KMO measure of sampling adequacy is an index used to examine the appropriateness of factor analysis. The marketing strategies.summarization and data reduction can be achieved. promotions. It seems to enjoy a reasonable amount of goodwill. SPSS Analysis to measure Customer satisfaction FACTOR ANALYSIS: Factor analysis is primarily a data reduction and summarization technique. Once. advertisements. While. A KMO measure close to 1 indicates that the pattern of correlation is relatively compact and hence factor analysis should yield distinct and reliable factors.
50 .e. therefore. For factor analysis to work we need some relationships between variables and if the R-matrix were an identity matrix then all correlation coefficients would be zero.5 as acceptable.001) and therefore. Chi-Square Bartlett's Test of Sphericity Df Sig. we want this test to be significant (i.254 36 . A significant test tells us that the R-matrix is not an identity matrix. Therefore.recommended accepting values greater than 0.e. Approx.000 ROTATED COMPONENT MATRIX: The table shows the rotated matrix. Here. At this stage SPSS has extracted four factors. KMO measure is . the model is assumed to be appropriate at least 69. Bartlett’s test is highly significant (p<0. For these data.698 i. there are some relationships between the variables we hope to include in the analysis.05). The matrix contains the loadings of each variable onto each factor.8%. Bartlett’s measure tests the null hypothesis that the original correlation matrix is an identity matrix.698 501. . factor analysis is appropriate. The factor loadings are rotated using Varimax rotation method to minimize the biasness due to other variables. KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Factor loadings are simple correlation between the variables and the factors. have a significance value less than 0.
Rotated Component Matrix(a) Component 1 PRICE SERVICE LOCATION AMBIENCE PRMOTION GCDISC PRODUCT VALMON EXCHANGE Extraction Method: Principal Component Analysis.72. They can be quite useful.899 .914 3 4 SCREE PLOT A Scree Plot is a plot of Eigen values against the number of factors in order of extraction.528 .885 . depending on the research. The curve up to the first two variables is quite steep after which the curve becomes smooth and flatter showing that the latter variables have less significance.849 .2.789 . It is possible to score every case in the analysis according to its value on the variables as they load on each of the rotated factors. a Rotation converged in 5 iterations. 51 . 1. . Rotation Method: Varimax with Kaiser Normalization. 1. These weighted scores are called factor scores.284 and 1. and the values computed for each case can be saved as a separate fie for input into other analysis.098 hence four factors were selected. The Scree Plot shows that the first 4 factors with Eigen values more than 1 have been selected with Eigen values of 3.544 -.863 .843 .573 2 .
5 2.0 Eigenvalue .5 0.Scree Plot 3.0 2.0 1.5 3.0 1 2 3 4 5 6 7 8 9 Component Number 52 .5 1.
promotional offer. 2. Factor 1 is named as the attracting factor Factor 2 is named as the retaining factor Factor 3 is named as the value for money Attracting factor The variables Service quality. ambience and green card discount have been clubbed together to form this factor. So Instead of running promotional offer in single section for a week company can keep on changing the offers every day. and 3. The Identified factors are Factor 1: Service quality. namely Factor 1. Green Card discount Factor 2: price. ambience. So to keep the market share maximum company needs to provide extra benefits which in turn will increase customer satisfaction. As initially we have seen that shoppers are not happy with the location of the store as because this is the only store in North kolkata. Value for money The variables Location and value of money have been clubbed together to form this factor. exchange policy Factor 3: Location. Products available in store are available in stand alone store apart from private brands products. So they need to travel a lot to reach store. In retail Industry every business house can provide products but the extra benefits that make the difference. promotional offer. Like what Wal-mart do. This program in Wal-mart is called as Value of the day. value for Money So by using factor analysis the variables have been clubbed under four baskets. Price is another important factor in Indian business as Indian people are very price sensitive. Retaining factor The variables price. That is why if 53 . exchange policy have been clubbed together to form this factor.These factors comprise of different variables.Implication of factor analysis By doing factor analysis of collected data I have got for major stable factors having Eigen Value more than 1.
For factor 1 & 2 alpha values are 0. So re test with this items will not lead to any random error.7882 Factor 2: N of Items: 3 Alpha: 0. Reliability check of factors Factor 1 N of Items: 3 Alpha: 0. 54 .7604 Factor 3: N of Items: 2 Alpha: 0. so with this factor if we describe the whole population then it can lead to an error.4403 for 2 items. It indicates acceptable reliability. They do check the worth of the product in compare to price.7882 & 0. we will find that maximum customers are coming from places around 3km radius of the store as because they are highly price concerned.764 respectively. It can create random error.we check the customer base of Kakurgachi store.4403 Findings from reliability check Apart from the factors all the factor items are consistent and stable In case of factor 3 the alpha value is 0.
45=greater than 45 Number of Cases in each Cluster Cluster Valid Missing 1 2 114.000 61.17541 . Hence on the basis on that the clusters are formed with dominant factor score and demographic background.000 175.14480 1 45 Notation: 1=male. Objective of using Cluster Analysis in this study: In this project cluster analysis is used to find out if any cluster exists in which a factor score and demographic background prominent.CLUSTER ANALYSIS: Cluster Analysis examines an entire set of interdependent relationships.000 4. Objects in a group are relatively similar in terms of these variables and different from objects in other groups. Final Cluste r Centers Cluster 1 REGR factor score 1 for analysis 1 REGR factor score 2 for analysis 1 REGR factor score 3 for analysis 1 GENDER AGE -. Relationship Identification: With the clusters defined and the underlying structure of the data represented in the clusters.01214 . Importance of Cluster Analysis: Classification: The most traditional use of cluster analysis has been for classification purposes.000 55 . 2=female 24 =18-25.09386 -. Data Simplification: Cluster analysis achieves a simplified perspective on the observations. Cluster analysis makes no distinction between independent and dependent variables. The attempt is to maximize the homogeneity of objects within the clusters while also maximize the heterogeneity between the clusters. Cluster analysis is usually used in a wide range of applications for its portioning ability. the researcher has means of revealing relationships among the observations that was not possible with the individual observations.07748 1 24 2 .02269 -. The primary objective of cluster analysis is to classify objects into relatively homogeneous groups based on the set of variables considered.
That means those who are coming to shop in Kakurgachi store they look for price as well as convienency. People of age group greater than 45 are heavily experienced about the market so they always look for worth of the product. At the same time because of his age they think twice before they get ready to move.They are highly price sensitive.So its also a important parameter for them.Cluster 1: From the above cluster analysis We can find which factor score and demographic is more prominent in a particul Cluster 1 factor 2 is the most prominent reason for customer satisfaction.This cluster comprises of male and age 18-25 . Green card discount & Ambience. Cluster 2: Cluster 2 comprises of age group greater 45 and gender male. Promotional offer and exchange policy plays the most important role. 56 . Here Factor 3 is most important. Factor 3 includes location and value of money. So for them Price. These age group people believes in quality not in quantity. Second prominent case is Factor 1 which includes Service quality. Customer feels that they deserve these as because they are paying for It.That means they are youth male. People of age group greater than 45 does not want to a crowded place that why Ambience plays an important role for them.
the variance-covariance matrix of the errors is diagonal and each non-zero element is the variance of the error. The variables are error-free. Now the prime objective of this research is to develop a regression equation which will help the company to calculate the Satisfaction level of the customer given that the responses of the customer regarding the independent variables in the equation are known. it is also of interest to characterize the variation of the dependent variable around the regression function. See Multicollinearity. regression analysis helps us understand how the typical value of the dependent variable changes when any one of the independent variables is varied. regression analysis estimates the conditional expectation of the dependent variable given the independent variables — that is. it must not be possible to express any predictor as a linear combination of the others. 57 . the estimation target is a function of the independent variables called the regression function. modeling may be done using errors-invariables model techniques. Less commonly. In all cases.e. which can be described by a probability distribution. Most commonly. i. Underlying Assumptions Classical assumptions for regression analysis include: The sample must be representative of the population for the inference prediction. the average value of the dependent variable when the independent variables are held fixed. that is. The errors are uncorrelated. weighted least squares or other methods might be used. or other location parameter of the conditional distribution of the dependent variable given the independent variables. the focus is on a quantile. while the other independent variables are held fixed. The variance of the error is constant across observations (homoscedasticity). in particular. In regression analysis. The error is assumed to be a random variable with a mean of zero conditional on the explanatory variables.Regression Equation In statistics. These are sufficient (but not all necessary) conditions for the least-squares estimator to possess desirable properties. consistent. when the focus is on the relationship between a dependent variable and one or more independent variables. these assumptions imply that the parameter estimates will be unbiased. and efficient in the class of linear unbiased estimators. If not. If this is not so. regression analysis includes any techniques for modeling and analyzing several variables. The predictors must be linearly independent. More specifically. Many of these assumptions may be relaxed in more advanced treatments.
312 Adjusted R Square .299 Std.Customer Satisfaction= + 1*X1+ 2*X2+ 3*X3 Where =Constant 1=Co-efficient of factor1 2=Co-efficient of factor 2 3=Co-efficient of factor3 And variables considered to measure customer satisfaction are mentioned below: X1= regrsn of factor1 X2= regrsn of factor2 X3= regrsn of factor3 Dependent Variable Customer Satisfaction Independent variable Model Summary Model 1 R . REGR factor score 1 for analysis 1 ANOVA(b) Model Regression 1 Residual Total Sum of Squares 50. REGR factor score 3 for analysis 1 . REGR factor score 2 for analysis 1 .134 110.711 . REGR factor score 2 for analysis 1 .805 a Predictors: (Constant).803 160.937 df 3 171 174 Mean Square 16.790 Sig.000(a) a Predictors: (Constant). REGR factor score 3 for analysis 1 . . Error of the Estimate . REGR factor score 1 for analysis 1 b Dependent Variable: SATISFAC 58 .648 F 25.558(a) R Square .
000 Standardized Coefficients Beta t Sig. Because rest of all the stores of pantaloon is in south kolkata or far away from north end of kolkata. Higher the value of independent variable .003 .061 .higher customer satisfaction which in turn will increase the profit 59 .000 -.018 . As many respondents feel that product price is high is store so company need to restructure its pricing policy to increase customer satisfaction level and which in turn will increase the loyal customer base. Location also has a negative relation with satisfaction as you can understand this is the only Pantaloon store in North kolkata so people need to move a lot to reach store.Mangement should start thinking of opening another store in North kolkata.061 .749 -0.533 Std. Error .050 . It proves that shoppers are very price sensitive.lower the price higher the customer satisfaction providing other variables are constant.554 45.06214*factor2+.Coefficients(a) Unstandardized Coefficients Model (Constant) REGR factor score 1 for analysis 1 1 REGR factor score 2 for analysis 1 REGR factor score 3 for analysis 1 a Dependent Variable: SATISFAC B 2.065 .310 8. Value of money and GC discount plays the most important role in customer satisfaction.061 .06214 .00305 0.960 1. Customer satisfaction= 2.737 .533*factor3 From this equation we can conclude following things: Price and customer satisfaction is inversely propotional.170 .061 -. All the factors apart from location and price has positive impact on customer satisfaction.00305*factor1+.479 -.
This meeting provides a open forum to floor staffs and managers to discuss on the major issues. which are: Subjective Interpretation of Promotions Personnel Need Influencer Past Experiences with the Product Management view of perception Steps to be followed to close the this knowledge gap • Customer research • More interactions between managers and customers • Better communications between managers and service providers The best practice that happens in the store is the everyday morning meeting. GAP 1.e. GAP 5 depends on the actual product and its usage. And they can communicate the same to managers and managers can steps to resolve those issues. GAP 2. Managers do call to customers to understand their expectation. GAP 1 & GAP 2 Consumer’s perception This Gap 1 & Gap 2 is known as Knowledge gap also This Gap may arise due to many factors.GAP ANALYSIS The Interpretation of the GAP Model is based on the Analysis of the Questionnaire filled by the shoppers. Floor staffs are aware of the of the major customer problems. So as per my analysis there is no as such gap lying in this part. 60 . The retailing Mix The Product Usage. GAP 3 and GAP 4 depends on the reatilingz Mix adopted and it analyses that either the marketing mix is effectively framed and rightly executed or not. In General the model can be interpreted of three main terms i.
And roles and responsibilities are not clear to staff. Salary given to employee is not at par with new comers of the Industry. It keeps changing with time. and decision making authority is bound with in the top officials of the store so staffs cant provide nay innovative solution from his/her end. In this gap there is a role of communication of also. So company should formulate a process to measure and set service goals and it should be properly communicated to floor staffs and departmental managers. Gap 5 Gap 5 which is known as Standard gap Steps to be taken to Close the Standards GAP • High quality service commitment • Define the role of service providers • Innovative solutions • Set service goals • Measure service performance Actually the main problem that pantaloon is having in this gap that they have no measuring process of the service. It leads to frustration of employee and which in turn reduces the delivered service quality. Realistic commitments and managing customer expectation can lower the gap.GAP 3 & Gap 4 Actual Service Closing the Delivery GAP • Information and training • Instrument and emotional support • Internal communications • Reduce conflicts • Empower employees • providing Incentives PRIL has main problem in this gap as there is formal training given to employees before putting them in floor. Another problem that PRIL is having is salary structure. 61 Service delivered . And that creates conflict in between staffs and which in turn reduces productivity of the staff. Many a mangers are mainly concerned about the targets and as per the staffs information they do feel they are biased for some of the employee who is working in the same level.
.87 The research on measuring service quality has focused primarily on how to meet or exceed the external customer‘s expectations.00 4.SERVQUAL scores Dimension Expectations Perceptions Gap score Tangibles Reliability Responsiveness Assurance Empathy 4.333 3.975 3. other major gaps could be closed in the service quality gaps model (Kang et al. 2002).00 3.31 -.69 3. and has viewed service quality as a measure of how the delivered service level matches consumer‘s expectations.00 4. .025 -.12 3. These perspectives can also be applied to the employees of a firm and in this case. 62 .00 4.88 -.00 4.67 -.135 .
so company should improve product quality. It causes inconveniency for customer. Should be trendy and keep pace with the market trend. Company should deal it on high priority basis as ladies ethnic products move maximum in the store. Colour bleeding is a regular incident for Rangmanch product. Very less stocks in high heels variety. The payment made by credit card or debit card to the cashiers by customers should be taken special care of. Company should immediately increase the number of trial rooms for ground floor section. There was less variety in Blue sky section. In Mix n match category products are leaving colour after single wash. There should be separate counter for senior citizen for cashiering. It was offered only on pouch. Good variety of merchandise should be there.. So it should be more in that section. Please take care of that. Price range is very high. Capri is not available in denim kid section. Akkriti men's. More Communication Should be there to guide the customers who visit for the first time. The card should be swiped once only to the Banks system not to the system of the store. This kind of product behaviour leads to irritation of customer. The Cashiering Should be done fast so as to save time of customers. Need to improve.Suggestions given by customers The jewellery purchased (wrislet) didn't have box to carry the item. Company should start keeping low priced product. Choice of colours in Levis and Jockey less. More cost effective clothes should be there in women section. 63 . Please bring back book and furniture Section. size not at par the standards.
Talking about the factors that motivate customers to come to the Pantaloons store mainly focus on their own in house brand availability and value for money. 64 . Many of the customers believe that Pantaloon has their own branded products to offer to the customers within a good price range. And they always expect Value for there every penny. Considering the fact that this project is focusing on customer experience while shopping led us to study whether they are satisfied with the variety and the product range available and 80% of the sample size believe that they get good variety and product range.Conclusion: As the data gathered through questionnaire suggests that the maximum number of customers fall between the age group of 20-35. Therefore information suggests that the customers mainly fall between 20-45 year age group and that constitute 88% of the total sample size. Providing a good billing experience to the customers is a must for every retailer. Pricing also becomes an important factor for customer to take in to consideration for evaluating their shopping experience. Taking in to consideration all the above mentioned factors when customers were asked to rate their overall shopping experience. Now there are 34% of the customer‘s falls in between >35. Many of the sample size believe pricing is good enough to come again. This is a point where customer can really get frustrated if they spend lot of time to get billing done. 8% responded that their billing experience had bad experience. 78% have said that their experience has been good and to 15% of the sample size this has been neutral. And Pantaloons in that context fulfill there all there expectations.As the Indian customers have different mind set. And they have the tendency to spent little and get more. 62% of the sample sizes have said that their billing experience has been excellent. The percentage in terms of number of customers that fall in 20-35 is 66%.
According to S. c. 2. Pantaloon also understands the fact that to gain a competitive edge over others. Out of the way solutionIt is said that if something extra is required to please the customers then there should be no hesitation of retailer. At the customer service desk (green service desk) lots of problems is being faced by customers as many complaints come over to them like: a. In an era where many domestic players are coming up in retail and international players are also eyeing India as an emerging retail market. b. 3.P if the Systems are not in proper condition or Have some problem it should be checked before store opening. Sometimes on Week Ends due to high rush Billing procedure gets slow and it humiliates the Customer. 65 . There are few recommendations that I think Pantaloons. they need to provide something extra to their customers. 4.O. how to provide solution etc should be provided. kakurgachi should take into consideration for developing a niche for itself in the market and enjoy a large chunk of loyal customers: 1. Training in terms of how to handle the customers. so that it may not affect the customers and there time.) Sometimes wrong billing is done.RECOMMENDATION Now you must have got the idea of how important is providing good customer services to the customers from the strategically point of view. The main concern for the Pantaloons would to provide good customer services and their by retain the customers. Fast billing processPeople at the cash till should be trained enough to get the billing done in a least possible time. And to retain one customer one should go to any end.) Scheme is not updated.) Many time Customer want to change the product due to liking or improper size. Trained customer care associatesIt is very important for any retailer to have a good team of trained customer care service associates. Delegation of authorityProper delegation of authority should be made at the CCA‘s level to handle customers‘ queries and provide immediate solution to the customers without consulting seniors because the extra time taken could frustrate the customers. As in retail world Customer is always right.
income. Simplify the product display. Deo. Music. Maximize product affordance. or other wellness department products. 66 . Which includes Look and feel of store like the fragnance . CRM programme is implementedTo keep the track on the customer demographics. Though it is not the part of PRIL it still hits the reputation of the store as it is sharing the same block in kankurgachi. It should not be confusing.5. it is imperative that a good ambience is created in the store. Their attitude towards customer is also not good. The following 10 steps should be followed by the store according to the customer recommendation: Maintain Flexibility Speak with Authority. 7. lifestyle. Show the merchandise. Minimize the clutter.So e-zone officials should go back to customers or inform them in case of any delay. Proper shopping ambienceTo provide good customer service. Make the Shopping experience enjoyable. Maintaining proper database of customers so that we can offer them with schemes and retain them as our loyal customers. Many a times e-zone product does get delivered on time in customer premises and it forces customer to comer back to store of make several calls to know the status. Lightning. Showcase new items and new ideas. Display of merchandise. Miscellaneous Small size plastic packs should be introduced for carrying small products like lipstick. Also the customer service the employees provide to the customers . 6. Like the First thing which attracts the customer is the store outlook which we in retail World call it Visual Merchandise. Attainders should be trained about the process before they start working. This misbehaving generally happens in gift wrapping and alteration counter. shopping pattern etc helps in customizing the services and providing the good customer experience. Provide effective navigation aids. Tags are not removed from the product after billing properly that leads to irritation for the customer as they had to come back from the exit gate once again. Make the shopping experience convenient.
Customers feel very bad when they had to go back to exchange counter once again to get the credit note. Either it should be handed over to CSD entirely of cash Dept. 67 . approving exchange & issuing credit note should be done from 1 counter. At least two trial rooms should be introduced in the ground floor. And that can be done by extending the existing trial rooms which are in the corner of the store. Issuing gatepass.
Annexure 68 .
Hoardings are used to communicate offer in mass. Loyalty programme Special discount for green card but condition applied. Alteration & gift wrapping is done with out any cost. Companies like Kaya. Wide range of products is available in store all the time. Apollo clinic etc. Fashion Friday discount for all green card holder. VLCC. Enough number of shopping bag in available.Annexure 1: Variables attached with entire operation of the store Convenience Separate parking facility for cars and bikes for free. Different kind of branded products under a single category No question exchange policy. 69 . Tangibility Good ambience Prompt customer service Well groomed staff Customer centric Number of private brands is high (19) All staffs are always updated with the all the happening in the store Promotional offers run almost all the time in the store Innovative marketing activities run through out the week and especially in the weekend to increase the number of footfalls in the store. Store location at prime place. Communication Offers are Communicated through sms to all the green card customer Fashion Friday sms to green card holder. Tie up with different companies regarding offer. Signage are placed properly with proper description Queries are solved over the phone.
Categorization of service components in categories of needs
Basic need Signages should be at the right place according to the instruction given in the signage. It should be short and simple in language. Products can be located easily. Ability to understand customer. Product quality and variety should be upto level Products should be available all the time in the store. Floor staffs should be knowledgeable enough so that they can assist customers at any point of time in the store regarding any issue. Parking facility should be there. Enough number of shopping bag should be available in the store. Hygienic store ambience. Performance need Accurate info should be provided every time Info should be provided over the phone also. floor staff is competent and knowledgeable about their work Floor timing should be stretched as per requirement. At any time, the customers can approach the top management for problem solving. Bills should get updated in green card instantly while billing the product. New green Card should be activated ASAP. Alteration quality should be upto to the mark. Gift wrapping should be done as per customer‘s wish. Prompt customer service. Store employees should be ever willing to help customers. Alteration should be done with in communicated time. Home delivery should be done with in the stipulated time (with in 24 hrs). Customer should not be left unattended. Excitement need Store offers convenient place to rest for the customers. Customer Service Department offers chocolates to kids Staffs are aware about all the happening of the store. Stores are providing info regarding the product availability in other store if it is not available in that particular store. No question exchange policy. Promotional offer running through out the year in different way. Store with large number of product variety.
Special discount on Friday for green card holder. Employee assistance at every point of the store. Number of private brand is high. Absence of this services that can lead to dissatisfaction but its presence will not satisfy customer
Drinking water Light music Welcome by guard Staff knowledge Free calling service for customer
Annexure 3: (Put tick mark on appropriate option)
1. I feel price is the most important factor while making any purchase a) Strongly agree b) Agree c) neutral d) Disagree e) strongly disagree 2. Ambience is important for me while making purchase a) Strongly agree b) Agree c) neutral d) Disagree e) strongly disagree 3. I feel promotional discount is important in picking any product a) Strongly agree b) Agree c) neutral d) Disagree e) strongly disagree 4. Green card discount plays an important role while buying any product a) Strongly agree b) Agree c) neutral d) Disagree e) strongly disagree 5. I always look for “value for money” in product. a) Strongly agree b) Agree c) neutral d) Disagree e) strongly disagree 6. Store location is very important for me. a) Strongly agree b) Agree c) neutral d) Disagree e) strongly disagree 7. Service quality plays the vital role while making purchase a) Strongly agree b) Agree c) neutral d) Disagree e) strongly disagree 8. Staffs knowledge and assistance also matters to me. a) Strongly agree b) Agree c) neutral d) Disagree e) strongly disagree 9. Product quality is very important for me. a) Strongly agree b) Agree c) neutral d) Disagree e) strongly disagree
NameAgeContact number -
1. How often do you purchase from pantaloon?? Once a week or more often 2 to 3 times a month Once a month Every 2-3 months 2-3 times a year 2. On a scale of 1 to 5 where (1 is Very unsatisfied and 5 is Very Satisfied), How satisfied are you with regarding the following items?
Attributes Ambience Store Location Service Quality Promotional Offer Floor staff knowledge Billing experience Product Price Green card Discount Range of Product Value of Money Exchange Policy Product Availability
Please comment on this attribute So that we can serve you better
3. How do you locate your desired product in store?
Yourself Every time with the help of floor staff. Some time with the help of floor staff.
4. How long do you wait to get your product altered? Less than 45 min In between 45 min -1.5hrs More than 1.5 hours I don‘t alter my product from pantaloon. (comment: I don‘t alter my product at all. 5. How long (in min) do you wait to get trail room? 0-2 2-4 4-8 More than 8 6. What do you feel about the parking facility of Store? Excellent Satisfied Good Not upto expectation. (comment Bad. (comment7. Are you able to get Shopping Bag every time while doing shopping in Store? o Yes o No 8. Indicate your satisfaction level based on the following parameters for the following stores : Stores Satisfied Neutral Dissatisfied Not visited Pantaloon Westside Shopper stop 9. Would you like to give any other suggestion so that we can serve you better?
Profile sheet NameAgeGreen Card number (if yes)Contact number:
Thank you for valuable feedback. 74
pdf Www.BIBLIOGRAPHY Website: www.retailindia. 75 .futuregroup.com Books: Marketing Management by Philip kotler Retail management by Swapna Pradhan SPSS for Windows Step by step by Darren George Marketing research By Naresh malhotra.in www.emeraldinsight.pantaloonretail.in www.in/pdf/surveys_reports/indias_retail_sector.fibre2fashion.in www.cci.in www.
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