CHAPTER-1

INTRODUCTION
1.1 INTRODUCTION:
DEFINITION:
It can refer to the way business is conducted in the retail sector; the very stage
in which goods and services are delivered to their end users.

RETAIL SERVICE QUALITY:

The retail environment is changing more rapidly than ever before. It is
characterized by intensifying competition from both domestic and foreign companies,
a spate of mergers and acquisitions, and more sophisticated and demanding customers
who have greater expectations related to their consumption experiences.
Consequently, retailers today must differentiate themselves by meeting the
needs of their customers better than the competition. There is strategy for creating
competitive advantage is the delivery of high service quality.
A retail store experience involves more than non-retail service experience in
terms of customers negotiating their way, through the store, finding the merchandise
they want, interacting with several store personnel along the way, and returning
merchandise, all of which influence customers evaluations of service quality. Thus,
although measures of service quality for pure service environments and for retail
environments are likely to share some common dimensions, measure of retail service
quality must capture additional dimensions. Our purpose is to investigate the
dimensions of service quality in a retail environment and to develop and validate a
scale to measure retail service quality.
Of all services marketing topics, service quality has gained much research
prominence in recent years (Schneider and White, 2004). Existing research indicates
that consumers satisfied with service quality are most likely to remain loyal (wong
and Sohal, 2003). Service quality is perceived as a tool to increase value for the
consumer; as a means of positioning in a competitive environment (Mehta, Lalwani
and Han, 2000) and to ensure consumer satisfaction (Sivadas and Baker-Prewitt,
2000) Rentention and patronage (Yavas, Bilgin and Shemwell, 1997). With greater
choice and increasing awareness, Indian consumers are more demanding of quality

1
service (Angur, Natarajan and Jahera, 1999) and players can no longer afford to
neglect customer services issues (Firoz and Maghrabi, 1994, Kassem, 1989).
Much of the attention focused on the service quality construct is attributable to
the SERVQUAL instrument developed by Parasuraman, Zeithaml & Berry (1988) for
measuring service quality. Several studies subsequently employed the SERVQUAL to
measure service quality and to assess the validity and reliability of the scale across a
wide range of industries and cultural contexts (Carman, 1990; Finn and Lamb, 1991;
Gagliano and Hathcote, 1994; Blanchard and Galloway, 1995; Mittal and Lassar,
1996; Zhao, Bai and Hui, 2002; Witkowski & Wolfinbarger, 2002; Wong and Sohal,
2003)
Little is known about service quality perceptions in India (Jain and Gupta,
2004) because research focus has primarily been on developed countries (Herbig and
Genestre, 1996). Given the relatively mature markets where the service quality scales
have been developed, it seems unlikely that these measures would be applicable to
India without adaptation. Angur, Nataraajan and Jahera (1999) examined the
SERVQUAL in the retail banking industry and reported a poor fit of the scale to the
empirical data. Despite this, several researchers (Sharma and Mehta, 2004; Bhat,
2005) have used the SERVQUAL scale in similar settings with no assessment of the
psychometric soundness of the scale.
Service quality in retailing is different from any other product/ service
environment (Finn and Lamb, 1991; Gagliano and Hathcote, 1994). For this reason,
Dabholkar, Thorpe and Rentz (1996) developed the Retail Service Quality Scale
(RSQS) for measuring retail service quality. The RSQS has a five dimensional
structure of which three dimensions comprise of two sub-dimensions each. Studies
assessing the applicability of the RSQS have reported encouraging results. Dabholkar,
Thorepe and Rentz (1996) replicated their own study and found all the RSQS
dimensions and sub-dimensions to be valid in the U.S. Mehta, Lalwani and Han
(2000) found the RSQS five dimensional structure appropriate for measuring the
service quality perceptions of supermarket consumer in Singapore. kim and Jin (2001)
report the RSQS a useful scale for measuring service quality of discount stores across
two different cultural contexts of U.S. and South Korea, though they reported
empirical support for a four and not a five dimensional structure. Boshoff and
Terblanche (1997), in a replication of the Dabholkar, Thorpe and Rentz (1996) study,

2
report highly encouraging results for the RSQS applicability in the context of
department stores, specialty stores and hypermarkets in South Africa.
This study evaluates the applicability of the RSQS scale developed by
Dabholkar, Thorepe and Rentz (1996) for measuring service quality in the Indian
specialty apparel store context. If the RSQS is found to be valid and reliable it will be
the first such instrument available to Indian retailers. If not, then researchers and
retailers alike would be forewarned about using an unreliable scale for measuring
retail service quality in India.
THE RSQS FOR MEASURING SERVICE QUALITY:
Service quality is defined as ‘a global judgement or attitude, relating to the
overall superiority of the service (Parasuraman, Zeithaml and Berry, 1988, p16). The
SERVQUAL proposes a gap based conceptualization of service quality where the gap
indicates the extent to which the service obtained confirms to expectations. In
SERVQUAL, both – store service performance and consumer expectations of the
store service, are explicitly measured to assess the ‘gap’ conceptually, this gap
assessment assumes that the statement of desired attribute levels is the yardstick a
consumer uses to assess store service performance (Carman, 1990). Schnieder and
White (2004) provide a list of several other yardsticks can be used by a consumer to
evaluate store service delivery. Even empirically, several researches find the
performance perceptions to the sufficient in assessing service quality as compared to
the gap (Carman, 1990; Angur, Nataraajan and Jahera, 1999). This resulted in the
adoption of the SERVPERF instrument instead of the gap based measure of
SERVQUAL.
SERVPERF is the performance battery of SERVQUAL.
Similar to and originating from the SERVPERF, the RSQS is a performance
based measure of service quality but specific to the retails context.
Given the lack of theoretical support, Dabholkar, Thorpe and Rentz (1996) used
a triangulations of research techniques to discover the factor structure of service
quality. It consisted of phenomenological interviews with three retails customers,
exploratory in-depth interviews with six customers and a qualitative study tracking the
through process of three customers during an actual shopping experience at a store.
Combining these findings they proposed a hierarchical factor structure for retail service
quality consisting of five dimensions – Physical aspects, Reliability, Personal
interaction, Problem solving and Policy. These are also referred to as the second-order

3
 factors because they are comprised of several sub-dimensions. Each of the first three
dimensions has two sub-dimensions each. These six sub –dimensions, also called the
first-order factors which are labeled as Appearance, Convenience, Promises, Doing-it-
right, Inspiring confidence and Courteousness/helpness. The entire RSQS structure is
represented in Figure 1.

Figure 1: The Retail Service Quality Scale (RSQS)

Service
Quality

Physical Personal Problem

Reliability Policy
Aspects Interaction Solving

Inspiring
Conven Doing- Courteous /
Appearan Promises Confiden
ience It-Right Helpfulness
ce ce

4
1.2 STATEMENT OF THE PROBLEM:

Indian retail sector is undergoing a buoyant transition from

unorganized retailing. This has given raise to severe competition among the organized

retail sector. Retail organizations are trying to understand the service quality

dimensions to serve better in the challenging market environment. Retail service

quality dimensions need to be understood to satisfy the customers.

This is identified as the problem area and the study has attempted to
address the above said issues with respects to kannan departmental store.

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1.3 OBJECTIVES:

 To understand the customer perception about Retail Service Quality

dimensions in Kannan departmental store.
 To analyse the key dimensions influence shopping at kannan
departmental store.
 To understand the expectation of the Kannan departmental store
customers.
 To find out the satisfaction level of store customers.
 To provide a roadmap for providing better Retail Service Quality to the
customers in Kannan departmental stores.

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1.4 SCOPE OF THE STUDY:
This research work will provide a better understanding about Retail Service

Quality Scale which is extensively used in the western countries to understand the

customers’ satisfaction about retail service. This study will provide a significant

insight into applying RSQS framework in south Indian retail stores.

1.5 LIMITATIONS OF THE STUDY:

The limitations of the study are as follows:

 The survey was limited to Erode branch of Kannan departmental store only

and hence the results may not be applicable to other branches.

 This survey was conducted on the spot which leads to some respondent bias

towards answering the questionnaire.

 The questionnaire contains many questions which may result in some biased

answers.

 Many of the customers were not able to give complete data due to their busy

schedule which leads to the inadequacy in data.

 Statistical tools like factor analysis and chi square only used to interpret the

questionnaire and confirmatory factor analysis was not carried out.

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1.6 CHAPTERIZATION OF THE STUDY:

 The first chapter INTRODUCTION includes statement of the problem,

objectives of the study, limitations of the study and chapterization of the study.

 The second chapter CONCEPTS AND REVIEW deals with review of related

literature and company profile.

 The third chapter RESEARCH METHODOLOGY includes research design,

data collection details and tools of the study.

 The fourth chapter DATA ANALYSIS AND INTERPRETATION deals with

analysis of the data and hypotheses testing.

 The fifth chapter RESULTS AND DISCUSSION includes findings of the

study, suggestions and conclusion.

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 CHAPTER-2
CONCEPTS AND REVIEW
2.1 REVIEW OF RELATED LITERATURE:
Given the increasing competition, retailers can no longer afford to neglect
customer service issues (Frioz and Manghrabi, 1994, Kassem 1989). With greater
choice and increasing awareness, consumers are more demanding of quality service in
markets which were not customer oriented a few years ago (Angur, Nataraajan and
Jahera, 1999). Service quality is being perceived as a tool to increase value for the
consumer; as a means of enhancing positioning (Mehta, Lalwani and Han, 2000) and
to ensure consumer satisfaction (Sivadas and Baker-Prewitt, 2000) retention and
patronage (Yavas, Bilgin and Shemwell, 1997).
Service quality and satisfaction are distinct constructs with service quality
considered as an antecedent to satisfaction with store (Taylor and Baker, 1994).
Service quality is ‘a customer’s judgement of the overall excellence or superiority of a
service’ (Zeithaml, 1988). It is a global evaluation by a consumer of a store’s service
delivery system (Dabholkar, Thorpe and Rentz, 1996).
The premises that service quality improvements will result in greater
consumer satisfaction (dick and Basu, 1994 ; Bitner , Booms and Mohr, 1994) is
supported by a limited amount of empirical evidence (lacobucci, Ostrom and
Grayson, 1995; Sivadas and Baker-Prewitt, 2000; Fullerton and Taylor, 2002). Once
of the earliest studies in a retails context by Sivadas and Baker-Prewitt (2000) reports
satisfaction linkages with service quality as significant for US department store
shoppers. Kim and Jin (2001), while validating a service quality scale using discount
store shoppers in different cultural contexts reported similar findings regarding the
significance of service quality in determining satisfaction. Another study by Wong
and Sohal (2003) of shoppers of a large department store in Australia reported
significant service quality impact on satisfaction at both the interpersonal (customer-
to employee) level and the store (customer –to-store) level.
Gronroos (1990) believed that store service offered different types of
consumer value and that service delivery provided only one kind of value. Kelly,
Donnely and Skinner (1990) reported that consumers find a distinction between
different values obtained from store service impacting their service quality

9
perceptions. This study refers to the consumer value obtained from service delivery as
“performance” value.
Cronin and Taylor (1002) in their study found that consumers do not always
“but the best quality service” evaluated as store service performance and proposed
future research could examine other ‘Attitude-based conceptualizations’ (p65) to
understand how consumers prioritize attributes. They suggest consumer could have
‘different assessment of the value of service’ (p 65) impacting their attitude and
behavioural intentions. Amirani and baker (1995) found consumer perceived quality
cues differently though they did not attempt to identify that underlying value
dimension(s) that could explain why this happens. Mitchell (2001) used risk
perceptions to classify store attributes a priori and argue that in addition to
performance value, consumer’s attitude and behavior is distinct based on risk
reduction related value obtained from the store.
Researchers examining the service quality construct are provided evidence in
this study that store service provides not just performance but also expressiveness
value to consumers. The dimensions (factors) obtained based on each value are
considerably different but both have significant explanatory power on satisfaction and
patronage intentions. Researchers have long suspected this difference in perceptions
amongst service attributes (Blanchard and Galloway, 1994). This study is among the
first to provide supporting empirical evidence that such perceptual differences can be
traced to value obtained. Retailers and researchers need to focus in understanding the
different value associations that consumers obtain from each service attribute. For this
reason, the service quality construct needs to move away from a purely service
delivery focus and gain greater consumer relevance (Iacobucci, Ostrom and Grayson,
1995). Service quality is definitely a consumer psychological construct but shoppers
evaluate the store service attributes on parameters other than just performance as
related to service delivery. For this reason, we believe that service quality, when
referring to the consumer perspective, needs to be re-defined to include all those
cognitive assessments that influence the consumer perceptions of the overall
‘superiority” of store service, including superiority in terms of expressiveness.

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Service Quality Models
Various service quality models proposed and applied in different contexts of services
marketing.

• SERVQUAL and GAP model by Parasuraman et al. (1988)

• SERVPERF by Cronin and Taylor (1992)
• Retail Service Quality Model by Dabholkar et al. (1996).

SERVQUAL and Gap Model:

• Service quality was defined through 10 dimensions:
• Access, communication, competence, courtesy, credibility, reliability,
responsiveness, security,
• Tangibles and understanding/knowing the customer.
• Later, they were simplified into five dimensions including tangibles,
reliability, responsiveness, assurance and empathy.

SERVPERF:
Cronin and Taylor (1992) developed a "performance-based" service quality
measurement scale called SERVPERF. The major difference between SERVQUAL
and SERVPERF is that SERVQUAL operationalises service quality by comparing the
perceptions of the service received with expectations, while SERVPERF maintains
only the perceptions of service quality. The SERVPERF scale consists of 22
perception items excluding any consideration of expectations.

Retail Service Quality Scale (RSQS):

Dabholkar et al. (1996) developed Retail Service Quality Model (RSQS). Based on
SERVPERF, RSQS includes 28-item scale, of which 17 items are from SERVPERF
and 11 items are developed by qualitative research.

It composes of 5 dimensions, namely

• (1) Physical aspects – Retail store appearance and store layout;
• (2) Reliability – Retailers keep their promises and do the right things;
• (3) Personal interaction – Retail store personnel are courteous, helpful, and
inspire confidence in customers;
• (4) Problem solving – Retail store personnel are capable to handle returns and
exchanges, customers’ problems and complaints; and
• (5) Policy – Retail store’s policy on merchandise quality, parking, operation
hours, and credit cards.

11
S. SERVQUAL Retail ServicePerception Item
No Dimension Quality Dimension
1 Tangibles Physical aspects P1. This store has modern-looking equipment and fixtures.

2 Tangibles Physical aspects P2. The physical facilities at this store are visually appealing.

3 Tangibles Physical aspects P3. Materials associated with this store's service (such as
shopping bags, catalogs, or statements) are visually appealing
4 (NI) Physical aspects P4. This store has clean, attractive, and convenient public
areas (restrooms, fitting rooms).
5 (NI) Physical aspects P5. The store layout at this store makes it easy for customers
to find what they need.
6 (NI) Physical aspects P6. The store layout at this store makes it easy for customers
to move around in the store.
7 Reliability Reliability P7. When this store promises to do something by a certain
time, it will do so.
8 Reliability Reliability P8. This store provides its services at the time it promises to
do so.
9 Reliability Reliability P9. This store performs the service right the first time.

10 (NI) Reliability P10. This store has merchandise available when the customers
want it.
11 Reliability Reliability P11. This store insists on error-free sales transactions and
records.
12 Assurance Personal interaction P12. Employees in this store have the knowledge to answer
customers' questions.
13 Assurance Personal interaction P13. The behavior of employees in this store instills
confidence in customers.
14 Assurance Personal interaction P14. Customers feel safe in their transactions with this store.

15 Responsiveness Personal interaction P15. Employees in this store give prompt service to
customers.
16 Responsiveness Personal interaction P16. Employees in this store tell customers exactly when
services will be performed.
17 Responsiveness Personal interaction P17. Employees in this store are never too busy to respond to
customer's requests.
18 Empathy Personal interaction P18. This store gives customers individual attention.

19 Assurance Personal interaction P19. Employees in this store are consistently courteous with
customers.
20 (NI) Personal interaction P20. Employees of this store treat customers courteously on
the telephone.
21 (NI) Problem Solving P21. This store willingly handles returns and exchanges.

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22 Reliability Problem Solving P22. When a customer has a problem, this store shows a
sincere interest in solving it.
23 (NI) Problem Solving P23. Employees of this store are able to handle customer
complaints directly and immediately.
24 (NI) Policy P24. This store offers high quality merchandise.

25 (NI) Policy P25. This store provides plenty of convenient parking for
customers.
26 Empathy Policy P26. This store has operating hours convenient to all their
customers.
27 (NI) Policy P27. This store accepts most major credit cards.
28 (NI) Policy P28. This store offers its own credit card.

2.1 COMPANY PROFILE:

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 Shri Kannan Departmental Store (p) ltd is the one of the leading
departmental store network in TamilNadu. All the needs and expectations of the
customers during shopping are fulfilled with great attention. They have a well trained,
experienced and motivated staff to serve their valuable customers with great attention
and enthusiasm.
Shri Kannan Departmental Store, one of the biggest and largest selling
departmental stores in Erode was formed by Mr. D. Navaneetha Krishnan. The store
was started in 1989 with 5 employees working in it. The departmental store has
everything under one roof. Almost all the products such as cosmetics, grocery, fancy
and gift items, snacks and bakes, home appliances, medicines baby care products,
fruits and vegetables, etc are available under one roof.
` It does not matter how much the customer purchase. The store supply all kind
of maligai (groceries), food items, masala (spices) and all varieties of rice for
customers family functions and occasions whether it is a small one or big. They also
provide catering services to their functions with variety of south Indian, North Indian
and Chinese food items.
They are having their own bakery and food production unit with highly
sophisticated and hygienic equipments with fully experienced staff under strict
supervision in a pollution free environment. Their products are branded as Shri
Kannan and distributed to other vendors also.
Initially, many hurdles were faced as the people had an opinion that the
products available in the store would be expensive. But the products sold in the store
are priced reasonably and affordable by all class of people. The store currently has
750 employees working in it. Customer satisfaction and reasonable pricing are the key
areas where the store has more strength.
The store has its head office at Erode. They had in total 40 branches all over
TamilNadu. The store has major branches in the area of Tirupur, Pollachi, Karur,
Coimbatore and Salem. The firm has grown and expanded recent times and it has
opened 5 branches at Erode alone. Thus, Kannan departmental stores have proved to
maintain its standard, quality and have over thousands of satisfied customers. The
store celebrates customer day in the months of December and January to delight its
customers.

14
 Customer can purchase everything for their need of their choice for home or
office. Brands of all renowned companies’, latest products, stationeries, utensils, and
gifts & novelty items are available. They have their own door delivery network.

DIVISIONS IN SHRI KANNAN DEPARTMENTAL STORE

 Grocery products.
 Oil & rice.
 Chocolate & sweets.
 Cosmetics.
 Medicines.
 Fruits.

CHAPTER-3

15
 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN:
A research design is the arrangement of conditions for collection and analysis
of data in a manner that aims to combine relevance to the research purpose with
economy in procedure. The task of defining the research problem is the preparation of
the design of the research project, popularly known as the “Research Design”.
Research design is used to study about the descriptive research.

DESCRIPTIVE RESEARCH:
Descriptive research study includes surveys and a fact finding enquires of
different kind which helps the researchers to describe the present situation that makes
the analysis about the customer attitude and helps to each the objects.
The main characteristics of this method are that the researcher has no control
over the variables; He/She can only report what has happened or what is happening.

3.2 SAMPLING TECHNIQUE:

A sample design is a definite plan for obtaining a sample from the sampling
frame. It refers to the technique or the procedure the research would adopt in selecting
design is determined before any data are collected.
The field work is the actual collection process and the respondents, who are
buying product from Shri Kannan Departmental Stores. The respondents were met
and told about the objectives of the study and data were collected through
questionnaire form. Convenient Sampling method is used in the study.

CONVENIENCE SAMPLING:

When population elements are selected for inclusion in the sample based on
the ease of access, it can be called convenience sampling. The sampling elements are
selected based on convenience of the researcher.

SAMPLE SIZE:
The sample size taken for study is 250 respondents.

DESIGN:

16
 The questions are based on multiple choices and it is designed on the basis of
summated scale of Likert -type scale under technique.

3.3 DATA COLLECTION DETAILS:

The data collection method includes one type of data;

• Primary Data.
• Secondary data

PRIMARY DATA:
The study comprises on “Primary Data”, which has collected from the

respondents.

SECONDARY DATA:
• Secondary data means data that are already available i.e., they
refer to the data which have already been collected and
analyzed by some one else.
• Secondary data may either be published data or unpublished
data.

3.4 TOOLS OF THE STUDY:

 Simple percentage
 Chi square test
 Exploratory Factor Analysis

CHAPTER-4

17
 DATA ANALYSIS AND INTERPRETATION
4.1 ANALYSIS OF DATA:
TABLE 4.1.1
GENDER OF RESPONDENTS

GENDER FREQUENCY PERCENT

MALE 140 56.0

FEMALE 110 44.0

TOTAL 250 100.0

SOURCE: PRIMARY DATA

FIGURE 4.1.1

INTERPRETATION:
From the above table it is inferred that 56.0% of the respondents are male and
44.0% of the respondents are female.
TABLE: 4.1.2

18
 AGE OF RESPONDENTS
AGE GROUP FREQUENCY PERCENT
< 25 52 20.8
26-40 141 56.4
41-55 49 19.6
>55 8 3.2
TOTAL 250 100.00
SOURCE: PRIMARY DATA
FIGURE: 4.1.2

INTERPRETATION:
From the above table it is inferred that 56.4% of the respondent’s are under
the age group of26-40 years.

TABLE: 4.1.3

19
 EDUCATIONAL QUALIFICATION OF RESPODENTS

QUALIFICATION FREQUENCY PERCENT

SCHOOL LEVEL 45 18
UG 95 38
PG 76 30.4
ANY OTHER 34 13.6
TOTAL 250 100
SOURCE: PRIMARY DATA
FIGURE: 4.1.3

INTERPRETATION:
From the above table it is inferred that 38.0% of the respondents are under
graduate and 30.4% of the respondents are post graduate.

TABLE: 4.1.4

20
 OCCUPATION OF RESPONDENTS

OCCUPATION FREQUENCY PERCENT

GOVT. EMPLOYEE 18 7.2
PRIVATE EMPLOYEE 104 41.6
SELF BUSINESS 50 20.0
HOUSE WIFE 39 15.6
STUDENT 39 15.6
TOTAL 250 100.00
SOURCE: PRIMARY DATA
FIGURE: 4.1.4

INTERPRETATION:
From the above table it is inferred that 41.6% of the respondents are private
employees, and only 7.2% of the respondents are government employees.

TABLE: 4.1.5

21
 MARITAL STATUS OF RESPONDENTS

MARITAL STATUS FREQUENCY PERCENT

SINGLE 74 29.6
MARRIED 176 70.4
TOTAL 250 100
SOURCE :PRIMARY DATA
FIGURE : 4.1.5

INTERPRETATION:
From the above table it is inferred that 70.4% of the respondents are married.

TABLE: 4.1.6

22
 MONTHLY INCOME OF RESPONDENTS

MONTHLY INCOME FREQUENCY PERCENT

< 5000 5 2
5000-10,000 54 21.6
10,000-15,000 53 21.2
15,000-20,000 42 16.8
>20,000 96 38.4
TOTAL 250 100
SOURCE: PRIMARY DATA
FIGURE:4.1.6

INTERPRETATION:
From the above table it is inferred that, 38.4% of the respondents are under the
income level of above Rs.20,000/- and only 2% of the respondents are under the
income level of below Rs .5000/-.

TABLE: 4.1.7

23
 FAMILY SIZE OF RESPONDENTS

FAMILY SIZE FREQUENCY PERCENT

2 12 4.8
2-4 139 55.6
4-6 76 30.4
>6 23 9.2
TOTAL 250 100
SOURCE :PRIMARY DATA
FIGURE:4.1.7

INTERPRETATION:
From the above table it is inferred that, 55.6% of the respondents are contain
2-4 members, and 30.4% of the respondents are contain 4-6 members.

TABLE: 4.1.8

24
 RESIDENCE OF RESPONDENTS

RESIDENCE FREQUENCY PERCENT

VILLAGE 41 16.4
TOWN 202 80.8
METROPOLITAN 7 2.8
TOTAL 250 100
SOURCE:PRIMARY DATA
FIGURE: 4.1.8

INTERPRETATION:
From the above table it is inferred that, 80.8% of the respondents are living in
town and only 2.8% of the respondents are living in metropolitan.

TABLE: 4.1.9

25
 FAVOURITE STORE OF RESPONDENTS

FAVOURITE STORE FREQUENCY PERCENT

RELIANCE RETAIL 32 12.8
SPENCERS 37 14.8
KANNA DEPARTMENTAL STORE 118 47.2
NILGIRIS 4 1.6
MORE 4 1.6
ANY OTHER 55 22
TOTAL 250 100

SOURCE: PRIMARY DATA

FIGURE: 4.1.9

INTERPRETATION:
From the above table it is inferred that, 47.2% of the respondents favourite
stores are Kannan Departmental stores , and 22% of the respondents favourite stores
are belong to any other category.

TABLE: 4.1.10

26
 FREQUENCY OF PURCHASE

FREQUENCY OF PURCHASE FREQUENCY PERCENT

Once in a week 34 13.6
Once in a month 151 60.4
Once in 3 months 49 19.6
Once in 6 months 6 2.4
Any other 10 4.0
TOTAL 250 100
SOURCE: PRIMARY DATA
FIGURE: 4.1.10

Interpretation:
From the above table It is inferred that, 60.4% of the respondents are purchase
frequently once in a month, and only 2.4% of the respondents are purchase frequently
on once in 6 months.

TABLE: 4.1.11

27
 SPENDING PATTERN OF RESPONDENTS

AMOUNT SPENDING FREQUENCY PERCENT

<500 37 14.8
500-1000 75 30
1000-2000 92 36.8
2000-4000 37 14.8
>4000 9 3.6
TOTAL 250 100

SOURCE: PRIMARY DATA

FIGURE: 4.1.11

INTERPRETATION:
From the above table it is inferred that, 36.8% of the respondents are amount
spending under the level of Rs.1000-2000, and only 3.6% of the respondents are
amount spending under the level above of Rs.4000.

TABLE: 4.1.12

28
 MOTIVATED TO BUY FROM KANNAN
MOTIVATED FREQUENCY PERCENT
HUSBAND 70 28
WIFE 63 25.2
KIDS 11 4.4
FRIENDS 56 22.4
ANY OTHER 31 12.4
RELATIVES 19 7.6
TOTAL 250 100
SOURCE: PRIMARY DATA
FIGURE: 4.1.12

INTERPRETATION:
From the above table it is inferred that 28.0% of the respondents are
motivated by husband and only 4.4% of the respondents are motivated by Kids.

TABLE: 4.1.13

29
RESPONDENTS OPINION ABOUT RETURNING DEFECTIVE PRODUCTS
RETURNING DEFECTIVE FREQUENCY PERCENT
PRODUCTS
STRONGLY AGREE 11 4.4
AGREE 96 38.4
.NEUTRAL 41 16.4
DISAGREE 64 25.6
STRONGLY DISAGREE 38 15.2
TOTAL 250 100.00
SOURCE: PRIMARY DATA
FIGURE: 4.1.13

INTERPRETATION:
From the above table it is inferred that, 38.4% of the respondent’s are agree
about the returning defective products.

TABLE: 4.1.14
RESPONDENTS OPINION ABOUT RETURN POLICY INFORMATION

30
 RETURN POLICY FREQUENCY PERCENT
INFORMATION
STRONGLY AGREE 12 4.8
AGREE 94 37.6
NEUTRAL 44 17.6
DISAGREE 56 22.4
STRONGLY DISAGREE 44 17.6
TOTAL 250 100.00
SOURCE: PRIMARY DATA
FIGURE: 4.1.14

INTERPRETATION:
From the above table it is inferred that, 37.6% of the respondent’s are agree
about the return policy information.

TABLE: 4.1.15
RESPONDENTS OPINION ABOUT STORE ACCEPTING RETURNS

31
 RETURN FREQUENCY PERCENT
STRONGLY AGREE 13 5.2
AGREE 96 38.4
NEUTRAL 49 19.6
DISAGREE 41 16.4
STRONGLY DISAGREE 51 20.4
TOTAL 250 100.00

SOURCE: PRIMARY DATA

FIGURE: 4.1.15

INTERPRETATION:
From the above table it is inferred that, 38.4% of the respondent’s are agree
about the return ,and only 5.2% of the respondent’s are strongly agree about the return
.

TABLE: 4.1.16

32
 RESPONDENTS OPINION ABOUT WRITTEN COMPLAINT HANDLING
POLICY
COMPLAINT HANDLING FREQUENCY PERCENT
POLICY
STRONGLY AGREE 17 6.8
AGREE 65 26.0
NEUTRAL 63 25.2
DISAGREE 77 30.8
STRONGLY DISAGREE 28 11.2
TOTAL 250 100.00

SOURCE: PRIMARY DATA

FIGURE: 4.1.16

INTERPRETATION:
From the above table it is inferred that, 30.8% of the respondent’s are
disagree about the written complaint handling policy and only 6.8% of the
respondent’s are strongly agree about the written complaint handling policy.

TABLE: 4.1.17

33
 RESPONDENTS KNOWLEDGE IN STORES COMPLIANT SOLVING
METHOD
SPECIFIC COMPLAINT FREQUENCY PERCENT
STRONGLY AGREE 8 3.2
AGREE 112 44.8
NEUTRAL 46 18.4
DISAGREE 61 24.4
STRONGLY DISAGREE 23 9.2
TOTAL 250 100.00

SOURCE: PRIMARY DATA

FIGURE: 4.1.17

INTERPRETATION:
It is observed from the above table that, 44.85 of the respondents are agree and only
3.2% of the respondents are strongly agree about the customers know specific
complaints.

TABLE: 4.1.18
RESPONDENTS OPINION ABOUT STORE ACCEPTING EXCHANGES
ACCEPT EXCHANGES FREQUENCY PERCENT

34
 STRONGLY AGREE 7 2.8
AGREE 104 41.6
NEUTRAL 40 16.0
DISAGREE 67 26.8
STRONGLY DISAGREE 32 12.8
TOTAL 250 100.00

SOURCE: PRIMARY DATA

FIGURE: 4.1.18

INTERPRETATION:
From the above table it is inferred that 41.6% of the respondents are agree, 16.0% of
the respondents are neutral, and only 2.8% of the respondents are strongly agree about
accept exchanges,

TABLE: 4.1.19
RESPONDENTS OPINION ABOUT STORES SINCERE INTEREST IN
SOLVING CUSTOMER PROBLEM
INTEREST TO FREQUENCY PERCENT
SOLVING PROBLEM

35
 STRONGLY AGREE 13 5.2
AGREE 111 44.4
NEUTRAL 37 14.8
DISAGREE 67 26.8
STRONGLY DISAGREE 22 8.8
TOTAL 250 100.00

SOURCE: PRIMARY DATA

FIGURE: 4.1.19

INTERPRETATION:
It is observed from the above table that, 44.4% of the respondents are agree,
14.8% of the respondents are neutral about interest to solving problem.

TABLE: 4.1.20
RESPONDENTS OPINION ABOUT STORES REAL BARGAINS
REAL BARGAIN FREQUENCY PERCENT
STRONGLY AGREE 24 9.6
AGREE 85 34.0
NEUTRAL 63 25.2
DISAGREE 58 23.2
STRONGLY DISAGREE 20 8.0
TOTAL 250 100.00

36
SOURCE: PRIMARY DATA
FIGURE: 4.1.20

INTERPRETATION:
From the above table it is inferred that, 34.0% of the respondents are agree
about real bargains.

TABLE: 4.1.21
RESPONDENTS OPINION ABOUT EMPLOYEES ADMITING MISTAKES

37
 EMPLOYEE ADMIT FREQUENCY PERCENT
MISTAKES
STONGLY AGREE 20 8.0
AGREE 85 34.0
NEUTRAL 60 24.0
DISAGREE 63 25.2
STRONGLY DISAGREE 22 8.8
TOTAL 250 100.00
SOURCE: PRIMARY DATA
FIGURE: 4.1.21

INTERPRETATION:
From the above table it is inferred that, 34.0% of the respondents are agree,
and only 8.0% of the respondents are strongly agree about employees admit mistakes.,

TABLE: 4.1.22
KMO AND BARTLETT’S TEST

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .865

Bartlett’s Test of Sphericity Approx. Chi-Square 8.883E3

Df 1485

38
 Sig .000

FIGURE: 4.1.22

Here’s the scree plot that we asked for. You can see that it might
lead you to a slightly different conclusion—it looks like the slope of
this curve levels out after just two factors, rather than three.

TABLE: 4.1.23
FACTOR ANALYSIS

POLICY FACTOR:
SL.NO FACTOR FACTOR SCORE RETAIL
SERVICE
QUALITY

39
 DIMENSION

1. Returning Defective products 0.873 Policy

2. Return policy information 0.854 Policy

3. Returns 0.828 Policy

Written complaint Handling

4. 0.814 Policy
policy

PROBLEM SOLVING FACTOR:

RETAIL
SERVICE
SL.NO FACTOR FACTOR SCORE
QUALITY
DIMENSION

1. Customer know 0.817 Problem solving

2. Accept exchanges 0.807 Problem solving

3. Solving interest 0.764 Problem solving

4. Real bargains 0.762 Problem solving

5. Employee admit mistakes 0.742 Problem solving

TABLE: 4.1.24
TOTAL VARIANCE

Initial Eigenvalues Rotation Sums of Squared Loadings

% of % of
Total Variance Cumulative % Total Variance Cumulative %
15.039 27.343 27.343 9.578 17.415 17.415

4.659 8.472 35.814 3.701 6.729 24.144

40
Initial Eigenvalues Rotation Sums of Squared Loadings
3.514 6.389 42.203 3.230 5.872 30.016

2.225 4.046 46.249 3.158 5.742 35.758

2.031 3.692 49.941 3.060 5.564 41.322

1.716 3.119 53.060 2.427 4.413 45.734

1.609 2.926 55.986 2.379 4.326 50.061

1.385 2.518 58.504 2.277 4.140 54.201

1.317 2.394 60.898 2.238 4.069 58.270

1.229 2.234 63.133 1.820 3.310 61.580

1.164 2.116 65.249 1.483 2.697 64.277

1.053 1.914 67.163 1.408 2.560 66.837

1.021 1.856 69.019 1.200 2.182 69.019

INTERPRETATION:
The above table, the total variance of 13 components only affects the end results
which constitute 69% variance value.

4.2 HYPOTHESES OF THE STUDY:

HYPOTHESIS:
Null Hypothesis: There is no relationship between educational qualification
of the respondent and policy factor.
Alternative hypothesis: There is a relationship between educational
qualification of the respondent and policy factor.

41
 TABLE: 4.2.1
EDUCATIONAL QUALIFICATION VS POLICY

Factors Chi2 value P value

Return policy information 18.695 0.096

Return 28.917 0.004

Written compliant Handling

34.238 0.001
policy

Returning defective products 11.738 0.467

INFERENCE:

Since, P1, (0.096) > 0.05, do not reject null hypothesis

P2, (0.467) > 0.05, do not reject null hypothesis

 P1  there is no relationship between educational qualification and return

policy information.
 P2  there is no relationship between educational qualification and returning
defective products.

HYPOTHESIS:
Null Hypothesis: There is no relationship between residence and policy
factor.
Alternative hypothesis: There is a relationship between residence and policy
factor.

TABLE: 4.2.2
RESIDENCE & POLICY

42
 Factors Chi2 value P value

Return policy information 21.831 0.005

Return 30.383 0.000

Written compliant Handling

20.359 0.009
policy

Returning defective products 22.249 0.004

INFERENCE:
Since P (0.009)>0.005, reject null hypothesis

There is a relationship between residence and all policy factor.

HYPOTHESIS:
Null Hypothesis: There is no relationship between gender and policy factor.
Alternative hypothesis: There is a relationship between gender and policy
factor.

TABLE: 4.2.3
GENDER Vs POLICY

43
 Factors Chi2 value P value

Return policy information 13.993 0.007

Return 22.013 0.000

Written compliant Handling

18.106 0.001
policy

Returning defective products 21.642 0.000

INFERENCE:
Since P (0.007) > 0.005, reject null hypothesis
There is a relationship between gender and all policy factor.

HYPOTHESIS:
Null Hypothesis: There is no relationship between educational qualification
and problem solving.
Alternative hypothesis: There is a relationship between educational
qualification and problem solving.
TABLE: 4.2.4
EDUCATIONAL QUALIFICATION Vs PROBLEM SOLVING

44
 Factors Chi2 value P value

Customer know 17.451 0.133

Accept exchanges 21.704 0.041

Solving interest 19.152 0.085

Real bargains 19.268 0.082

Employee admit mistakes 23.751 0.022

INFERENCE :

Since, P1, (0.133) > 0.05, do not reject null hypothesis

P2, (0.085) > 0.05, do not reject null hypothesis
P3, (0.082) > 0.05, do not reject null hypothesis

 P1  there is no relationship between educational qualification and customer

know.
 P2  there is no relationship between educational qualification and interest to
solving problem
 P3  there is no relationship between educational qualification and real
bargains

HYPOTHESIS:
Null Hypothesis: There is no relationship between gender and problem
solving.
Alternative hypothesis: There is a relationship between gender and problem
solving.

TABLE: 4.2.5
GENDER Vs PROBLEM SOLVING

45
 Factors Chi2 value P value

Customer know 18.825 0.001

Accept exchanges 16.527 0.002

Solving interest 22.761 0.000

Real bargains 4.244 0.374

Employee admit mistakes 8.312 0.081

INFERENCE:

Since, P1, (0.374) > 0.05, do not reject null hypothesis

P2, (0.081) > 0.05, do not reject null hypothesis

 P1  there is no relationship between Gender and Real Bargain.

 P2  there is no relationship between gender and Employee Admit mistakes

HYPOTHESIS:
Null Hypothesis: There is no relationship between residence and problem
solving.
Alternative hypothesis: There is a relationship between residence and
problem solving.

TABLE: 4.2.6

46
 RESIDENCE Vs PROBLEM SOLVING

Factors Chi2 value P value

Customer know 32.637 0.000

Accept exchanges 22.191 0.005

Solving interest 29.644 0.000

Real bargains 21.897 0.005

Employee admit mistakes 23.268 0.003

INFERENCE:
Since P (0.005) > 0.05, reject null hypothesis.
There is a relationship between residence and all problem solving factor.

CHAPTER-5
RESULTS AND DISCUSSION
5.1 FINDINGS OF THE STUDY:
 It is identified from the analysis that 80.4% of the respondents like Kannan
Department store.

 Majority of 56.0% of the respondents are male

47
 It is identified from the analysis that 56.4% of the respondents are under the
age group of 26-40.

 The study reveals that 38% of respondents are under graduate.

 It is clear that 41.6% of the respondents are Private Employees.

 Most of the respondents (70.4%) are married.

 It is clear 21.6% respondents have monthly salary within range of Rs.5000-

10000

 Majority of respondents (55.6%) are having 2-4 members in their family.

 It is the clear that the 80.8% of the respondents are residing in Town.

 The analysis shows that respondents (47.2%) favorites store is Kannan

Departmental store.

 The analysis shows that 60.4% of the respondents are frequently purchasing
once in a month.

 It is viewed that respondents (36.8%) average amount spending in kannan is

Rs.1000-2000.

 It is viewed that (25.2%) respondents are motivated by wife to buy the product
from Kannan.

 Most of the respondents (68.8%) are agree with their store cleanliness .
 68.0% of the respondents are agree with their products displayed.

 Mostly 65.2% of the respondents agree with the out of stock in their store.

48
 50.4% of the respondents agree the modern outlook of Kannan departmental
stores.

 It is viewed that 60.0% of the respondents agree with the information display
in their stores.

 Mostly 38.4% of the respondents agree with their returning defective products.

 It is viewed that 37.6% of the respondents agree with their return policy
information.

 38.40% of the respondents are agree with their return and exchange product.

 Mostly of the respondents (30.8%) are disagree with their written complaint
handling policy.

 The analysis shows that 44.8% of the respondents agree with their customer
know for specific complaints.

 Mostly of the respondents (41.6%) are agree with their acceptance exchanges.

 It is the clear that the 44.4% of the respondents agree with their interest of
solving the problem.

 Majority 34.0% of the respondents agree with their real bargaining power.

 Majority 34.0% of the respondents are agree with employees admit mistakes.

49
Suggestion:
 The departmental store may satisfy the customer according to their preference
and their taste.
 It is suggested that, more respondents wants to take written complaint for
handling policy.
 They may improve their reliability factor. Which includes employees help, fast
check out etc.
 They can take the customer problem and give solution for immediately.

Conclusion:

There is an urgent boom in the retaining industry many markets and malls

have been established to accompany the needs of the customers. The customers prefer

shopping in the super markets, department stores, malls. To attract the new customers

and update the regular customer they to retain a good relationship with their

customers like customer satisfaction, price, quality, advertisement etc. may of the

customers are buying for the price, availability etc.

The Kannan department stores have retained many precious customers

through its physical aspect, reliability, personal interaction etc. the store has to

maintain its goodwill and upgrade itself to the growing needs of the customers. The

shore now should not only concentuate on maintain its good will, but also it should

make up itself in the market meeting changes. As customers are the main asset of the

store, it should focus on presenting the health and good relationship with customers.

50
 APPENDICES
QUESTIONNARIES:
1. Name of store . . . . . . . . ……. . . . . . . . . . . . . . . .. . . .

2. Gender Male Female

3. What is your age group? --------------------------------

4. Educational Qualification School Level UG ----------------- PG

-------------
Any Other --------------------

5. Occupation -------------------------------------------------

6. Marital Status Single Married

7. Income of Your Family (Per Month) ---------------------------

8. No of People in your household 2 2- 4 4-6

More than 6

9. Residence Village Towns Metropolitan

10. Which is your favorite department store?

Reliance Retail Spencers Kannan Departmental

Store

Nilgris More Any Other

------------------------------
11. How often you come to this store?

Once in a Week Once in a month Once in 3 months

Once in 6 months Any Other ------------------

12. Average amount spent on each shopping?

Less than Rs 500 500 – 1000 1000-2000 2000-

4000
More than 4000

51
13. Store selection decision made by Husband Wife Kids
Friends

Relatives Any Others

------------------
Please give your opinion regarding your shopping experience in this store.
1 - Strongly agree, 2 – Agree, 3- Neutral, 4 – Disagree, and 5 - Strongly disagree.

Q. Particulars 1 2 3 4 5
No
1 This store looks clean and compact inside.

2 The various products displayed in this store visually looking good.

3 This store is very rarely out of stock on various products.

4 This store looks very modern in its outlook.

5 Information about various products is displayed in a helpful way.

6 Layout of this store helps the customer to have a best and easy shopping.
Self selecting the product is very easy in this store and guided properly by
7
instructions.
8 Selection of products in this store is easy with the help of different signs.

9 This store entertains the customer while shopping.

10 The store security people constantly watch the customer while they shopping.

11 This store looks like a typical TamilNadu store.

12 This store provides the best shopping atmosphere for the local community.

13 It is really convenient to evaluate the products at this store.

14 The various displays at this store are kept at the right height.

15 The products arrangements are designed for customers shopping convenience.

The colors used, and shelf displays helps customers in choosing the desired
16
products.
There is an appropriated level of products for the selection. (Not very less, Not
17
very high)
Store employees are available all the time and are ready to help if there is any
18
need.

52
Q. No
Particulars
Customers can do shopping very quickly in this store and have a fast check-
19
out.
20 The store employee gives customers the confidence for entire shopping.

21 Selling people at this store gives prompt and adequate service.

This store has knowledgeable employees who can answer various customer
22
queries.
23 Selling people at this store greets customers when they entered the store.

24 The store employees are always polite and courteous with the customers.

25 The store employees treat the customers well and give respect in the store.
The employees of this store expressed their appreciation for customers
26
shopping.
27 This store treats customer as a king.

28 Selling people at this store disrupts the customers while shopping.

29 Customers get individual attention whenever they do shopping at this store.

30 The employees of this store are flexible in their jobs whenever there is a need.
This store employee is carrying on their work correctly without making any
31
complication.
Store people show willingness while dealing with returns and exchanges of
32
products.
This store goes out of its own procedure to solve the specific customer
33
problems.
Whenever there is customer problem this store shows a sincere interest in
34
solving it.
Customers know very well what this store will do to solve their specific
35
complaints.

Q.No Particulars

53
36 This store informs customers the written policy on returns and exchanges.

37 In this store they accept exchanging of products.

38 This store permits the customers to return back the defective products.

39 This store has written complaint handling policy.

40 The selling people at this store admit their mistakes.

41 This stores “Sales” and special offers are real bargains for the customers.

42 The location of this store is convenient for the customers.

In this store the prices of the products are reasonable to the customers (Value
43
for Money).
44 The products at this store are really of high quality.

45 The products at this store have latest trends and styles.

46 In this store products of well known brands are available for the customers.

47 This store is close to the customers living area.

48 There is something special and different about this store.

49 Customers always have admiration about this store.

50 This store has a good reputation among customers.

51 This store is good most of the time in all their activities.

52 I will again come back to this store in the next 3 months.

53 I will recommend this store to others.

54 I will come back to this store for my next shopping.

I will spend the same amount of money for my next shopping in this store as
55
like my previous shopping spending in this store

REFERENCES:

54
1. Angur, M.G.,R Naaraajan and J.S.Jahera (1999). “service Quality in the
blanking industry: an assessment in a developing economy,” International
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2. Bitner, Mary Jo, Bernard Booms and Lois Mohr (1994), “Critical Service
Encounters: The Employee’s Viewpoint,” Journal of Marketing, 58 (October).
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3. Cronin, J.J. and S.A.Taylor (1992), “Measuring Service Quality”: a

reenamination and extension,” Journal of Marketing, 56 (July). 55-68.

4. Dabholkar, Pratibha, Dayle Thorpe and Joseph Rentz (1996), “A Measure of

Service Quality for Retail Stores: Scale Development and Validation,” Journal
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5. Firoz N.M. and A.S.Maghrabi (1994), “The Role of Service Marketing in

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6. Gronroos (1990), Service Management and Marketing: Managing the

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Brand Extensions,” Advances in Consumer research, 29(1). 199-206.

8. Lacobucci, Dawn, Amy Ostrom and Kent Grayson (1995), “Disinguishing

Service Quality and Customer Satisfaction: The Voice of the Consumer,”
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9. Kim, Soyoung and Byoungho Jin (2002), “Validating the retail service quality
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10. Mehta, Subhash C., Ashok Lalwani and Soon Li Han (2000), “Service Quality
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difference product-service environments,” international Journal of Retail &
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11. Schneider, Benjanim and Susan White (2004), Service Quality – Research
Perspectives, Foundations for Organizational Science, California, USQ: Sage
Publications Inc.

12. Sivadas, Eugene and Jamie Baker-Prewitt (2000), “ An Examination of the

relationship between service quality, customer satisfaction, and store loyalty”,
International Journal of Retails & Distribution Management , 28 (2). 73-82

13. Taylor, Steven A. and Thomas L.Baker (1994), “an Assessment of the
Relationship between Service Quality and Customer Satisfaction in the
Formation of Consumers’ Purchase Intentions,” Journal of Retailing, 70
(summer). 163-178.

14. Wong, Amy and Amrik Sohal (2003), “service Quality and Customer Loyalty
Perspectives on two levels of retails relationships,” Journal of Services
Marketing, 17 (5). 495-513.

15. Yavas, Ugur, Z.Biling and D.J.Shemwell (1997), “Service Quality in the
banking sector in an emerging economy: A consumer survey,” International
Journal of Bank Marketing, 15(6) 217-223.

56
57