Professional Documents
Culture Documents
Customer Satisfaction
Submitted in partial fulfillment for the Award of degree of Master of Business Administration
Company Certificate
Faculty Certificate
Preface
Acknowledgement
_________________, Deptt______________., for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him/her/them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he/she/they had provided to me with all stages of this project. I would also like to thank the supporting staff
___________________________ Department, for their help and cooperation throughout our project.
(Signature of Student)
Executive Summary
1. Industry Profile
1.1 What is retailing?
Retailing is a distribution channel function, where one organization buys products from supplying firms or manufactures products themselves, and then sells these directly to consumers. In majority of retail situations, the organization, from whom a consumer buys, is a reseller of products obtained from others, and not the product manufacturer. However, some manufacturers do operate their own retail outlets in a corporate channel arrangement. Retailers offer many benefits to suppliers and customers as resellers. Consumers, for instance, are able to purchase small quantities of an assortment of products at a reasonably affordable price. Similarly, suppliers get an opportunity to reach their target market, build product demand through retail promotions, and provide consumer feedback to the product marketer.
1.2 Introduction
The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry. The total concept and idea of shopping has undergone an attention drawing change in terms of format and consumer
buying behavior, ushering in a revolution in shopping in India. Modern retailing has entered into the Retail market in India as is observed in the form of bustling shopping centers, multi-storied malls and the huge complexes that offer shopping, entertainment and food all under one roof. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing workingwomen population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized Retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the India Retail Industry. In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent annually. The Food Retail Industry in India dominates the shopping basket. The Mobile phone Retail Industry in India is already a US$ 16.7 billion business, growing at over 20 per cent per year. The future of the India Retail Industry looks promising with the growing of the market, with the government policies becoming more favorable and the emerging technologies facilitating operations.
indicating a huge potential market opportunity that is lying in the waiting for the consumer-savvy organized retailer.
Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even Jewelers, are slowly becoming lifestyle products that are widely accepted by the urban Indian consumer. Indian retailers need to advantage of this growth and aiming to grow, diversify and introduce new formats have to pay more attention to the brand building process. The emphasis here is on retail as a brand rather than retailers selling brands. The focus should be on branding the retail business itself. In their preparation to face fierce competitive pressure, Indian retailers must come to recognize the value of building their own stores as brands to reinforce their marketing positioning, to communicate quality as well as value for money. Sustainable competitive advantage will be dependent on translating core values combining products, image and reputation into a coherent retail brand strategy. There is no doubt that the Indian retail scene is booming. A number of large corporate houses have already made their foray into this arena, with beauty and health stores, supermarkets, self-service music stores, new age book stores, every-day-low-price stores, computers and peripherals stores, office equipment stores and home/building construction stores. Today the organized players have attacked every retail category. The Indian retail scene has witnessed too many players in too short a time, crowding several categories without looking at their core competencies, or having a well thought out branding strategy.
As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offer shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping in India. This has also contributed to large-scale investments in the real estate sector with major national and global players investing in developing the infrastructure and construction of the retailing business. The trends that are driving the growth of the retail sector in India are
Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items Another credible factor in the prospects of the retail sector in India is the increase in the young working population. In India, hefty pay packets, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector. These key factors have been the growth drivers of the organized retail sector in India which now boast of retailing almost all the preferences of life - Apparel & Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many more. With this the retail sector in India is witnessing rejuvenation as traditional markets make way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. The retailing configuration in India is fast developing as shopping malls are increasingly becoming familiar in large cities. When it comes to development of retail space specially the malls, the Tier II
cities are no longer behind in the race. If development plans till 2007 is studied it shows the projection of 220 shopping malls, with 139 malls in metros and the remaining 81 in the Tier II cities. India is being seen as a potential goldmine for retail investors from over the world and latest research has rated India as the top destination for retailers for an attractive emerging retail market. Indias vast middle class and its almost untapped retail industry are key attractions for global retail giants wanting to enter newer markets. Even though India has well over 5 million retail outlets, the country sorely lacks anything that can resemble a retailing industry in the modern sense of the term. This presents international retailing specialists with a great opportunity. The organized retail sector is expected to grow stronger than GDP growth in the next five years driven by changing lifestyles, burgeoning income and favorable demographic outline.
1.6
Industry Evolution
The emergence of the neighborhood Kirana stores catering to the convenience of the consumers
Era of government support for rural retail: Indigenous franchise model of store chains run by Khadi & Village Industries Commission1980s experienced slow change as India began to open up economy.
Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim first saw the emergence of retail chains
Later Titan successfully created an organized retailing concept and established a series of showrooms for its premium watches
The latter half of the 1990s saw a fresh wave of entrants with a shift from Manufactures to Pure Retailers.
Post 1995 onwards saw an emergence of shopping centers mainly in urban areas, with facilities like car parking targeted to provide a complete destination experience for all segments of society
Emergence of hyper and super markets trying to provide customer with - Value, Variety and Volume
Expanding target consumer segment: The Sachet revolution example of reaching to the bottom of the pyramid.
At year end of 2000 the size of the Indian organized retail industry is estimated at Rs. 13,000 crore
grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales.
Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium
India is rated the fifth most attractive emerging retail market: a potential goldmine.
o o o o
Multiple drivers leading to a consumption boom: Favorable demographics Growth in income Increasing population of women Raising aspirations: Value added goods sales Food and apparel retailing key drivers of growth Organized retailing in India has been largely an urban Phenomenon with affluent classes and growing number of doubleincome households.
More successful in cities in the south and west of India. Reasons range from differences in consumer buying behavior to cost of real estate and taxation laws.
Rural markets emerging as a huge opportunity for retailers reflected in the share of the rural market across most categories of consumption
IT is a tool that has been used by retailers to radically change buying behavior across the globe.
1.10 Conclusion
The retail sector has played a phenomenal role throughout the world in increasing productivity of consumer goods and services. It is also the second largest industry in US in terms of numbers of employees and establishments. There is no denying the fact that most of the developed economies are very much relying on their retail sector as a locomotive of growth. The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the countrys GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry.
2. Project Profile
The paper is intended to provide information about Customer satisfaction level with the City Malls of Kota. In India there have been a great successful brand both national as well as foreign brands and again it has been realize that brands are sustaining power to stay in the competitions. If we define the customer satisfaction we can say a qualitative measure of performance as defined by customer, which meet their basic requirements and standard. Customer satisfaction is defined as measure or determination that a product or services meet a customers expectation, considering requirement of both quality and service. This paper has been under taken to study of customer perception about shopping malls and suggesting way to improve its market share in sales through customer perception about private labels.
3. INTRODUCTION
Customer is the king; this is all the more apt for today's business environment where, all other factors remaining more or less constant, it is the value addition to the customer that is making all the difference. Todays companies are facing their toughest competition ever. These companies can outdo their competition if they can move from product and sales philosophy to a marketing philosophy. We spell out in detail how companies can go about winning customers and outperforming competitors. The answer lies in doing a better job of meeting and satisfying customers needs. Only customercentered companies are adept at building customers, not just building product. They are skilled in market engineering, not just product engineering. Too many companies think that it is the marketing/sales departments job to procure customers. If that department cannot, the company draws the conclusion that its marketing people arent very good. But in fact, marketing is only one factor in attracting and keeping customers. The best marketing department in the world cannot spell products that are poorly made or fail to meet anyones need. The marketing department can be effective only in companies whose various departments and employees have designed and implemented a competitively superior customer value-delivery system. Although the customer oriented firms seek to create high customer satisfaction, its main goal is to maximize customer satisfaction, first the company can increase customer satisfaction by lowering its
prices, but results may be lower profits second the company might be able to increase prices. Third the company has many stakeholders including employees, dealers, suppliers and stock holders spending more to increase customer satisfaction might divert funds from increasing the satisfaction of other partner. Estimate the company must operate on the philosophy that it is trying to deliver a high level of satisfaction to the other stake-holder within the constraints of its resources. From the past studies of last three decades we observed that the companys first task is to create and satisfy customers. But todays customers face a vast array of product and brand choice prices and suppliers. It is generally believed that customers estimate which offer will deliver the most value customers are like value maximizes, within the bounds of search costs and limited knowledge, mobility income, they form an expectation of value and act on it, whether or not the offer lives up to the value expectations affects customers satisfaction and their repurchase probability. Customer satisfaction depends on the products performance relative to a buyers expectation, the customer is dissatisfied. If preference matches expectations, the customer is satisfied. If preference is exceeds expectation, the customer is highly satisfied or delighted outstanding marketing insurance companies go out of their way to keep their customer satisfied. Satisfied customers make repeat purchases in of products and tell other about their good experiences with the product. The key is to match customer expectations with company performance. Consumers usually face a broad array of products and services that might satisfy a given need. Consumers make choices based on their perception of the value and satisfaction that various products and services deliver.
Customer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the products customers from expectations about the value of various marketing offers and buy accordingly. Customer
expectations are based on past buying experiences, the opinion of friends and marketer and competitor information and promises. Customer satisfaction with a purchase depends on how well the products performance lives up to the customers expectations. Customer satisfaction is a key influence on future buying behaviour. Satisfied customers buy again and tell others about their good experiences dies-satisfied customers of ten switches to competitors and disparage the products to others. Customers are the best source of information. Whether to improve an existing product or service or whether firms are planning to launch something new. There is no substitution for getting it from horses mouth When you talk to your customer directly, to increase your odds for achieving success you mistake -proof your decisions and work on what really matters. When you routinely ask the customers for feedback and involve them in business they, in turn, become committed to the success of your business. A consumer decision making (CDM) style is a mental orientation characterizing a consumers approach to choices. Broadly speaking, there are three types of approaches in studying consumer decision-making styles: the psychographic / lifestyle approach, which identifies hundreds of characteristics related to consumer behavior; the consumer typology approach, which classifies consumers into several types; and the consumer
4. RESEARCH METHODOLOGY
The quality and reliability of research study is dependent on the information collected in a scientific and methodological manner. Scientific planning of designing of research method is a blue print for any research study. Therefore, proper time and attention should be given in designing the plan of research. While proper definition of problem tells the researcher where he has to go, proper design tells him how he should go. Selection of methodology for a particular project is made easy by sorting out a number of alternative approaches, each of them having its own advantage and disadvantages. Efficient design is that which ensure that the relevant data are collected accurately. The researcher has to think about what procedure and techniques should be adopted in the study. He should arrive at the final choice by seeing that the methodology chosen for project is indeed the best one, when compared with others.
To enhance the communication & co-operation between the company and their customers. To find out which sales promotion tools will increase the sales To know the features that attracts the customer
implementation and control of research project. In fact a well planned and well balanced research design guards against collection of irrelevant data and achieves the result in the best possible way. The type of research is descriptive approach which means asking questions to people who are believed to possess the desired information. It measures the magnitude of peoples knowledge, attitudes and buying behaviour. In survey method the data collection is through structured direct interview. Structured direct interview is a formal questionnaire (i.e. set of questions) that is structured and direct and the interviewer is instructed to ask the persons those questions only in the order given in the questionnaire. This type of interview is referred to as Structured survey. Its advantage is that, less skilled interviewers can be used resulting in lower cost per interview. It gives standardized
information and hence editing, tabulating and analyzing of the data are more easily done.
4.4 Sampling:
It is not always necessary to collect data from whole universe. A small representative sample may serve the purpose. A sample means a small group taken in a large lot. This small group taken in a large lot .This small group should be emanative cross section and really representative in character. This selection process is called sampling.
3.6.2 Research Instrument: Questionnaire: A questionnaire is a carefully complied logical sequence of questions directed to a define objective. It is the outline of what information is required and the framework on which the data is
built upon. Questionnaire is commonly used in securing marker information that its preparation deserves utmost skill and care. Collection of data: One of the important tools for conduction market research is that availability of necessary and useful data. Date collection is more of an art than a science. The methods of marketing research are in a way the methods of data collection. The sources of information fall under two categories: Internal sources: Every company has to keep certain records such as accounts, reports etc. these records provide sample information which an organization usually keeps collection in its working. External sources: When internal records are insufficient and required information is not available, the organization will have to depend on external sources. External sources of data are: a) Primary data: The data collected for a purpose in original
and for the first time is known as primary data. The researches collect this data to study a particular problem. Here the primary data is data collected through questionnaire by directly meeting the customers
b)
published sources i.e., not originally collected of the first rime is called secondary data. Here the secondary data is data collected from the companys brochures, pamphlets, catalogues and the website.
Non - availability of secondary data compelled me to start from the very minute information. Respondents in some department gave biased responses for fear of their position in the company. This may have influenced the results.
Some people at top level were afraid and showed complete reluctance to give responses to some questions.
1.
Table 1 Sl. No 1 2 3 4 5 Type of media Television Print Media Friends/Relatives Hoardings Other Total No. of respondents 23 23 37 7 10 100 Percentage 23 23 37 7 10 100
Type of Media
40 35 30 25 20 15 10 5 0 No. of respondents
Percentage
Inference:
23% respondents came to know through print media, 37% respondents came to know through friends / relatives, 7% respondents came to know through hoardings, 10%respondents came to know through others.
From this it is clear that most of the respondents came to know about mall through friends / relatives.
2. The ratings of the customers towards mall services & facilities. Table 2 Sl. No 1 2 3 4 Ratings Excellent Good Satisfactory Poor Total No of respondents 17 12 10 0 39 Percentage 43 35 22 0 100
50 45 40 35 30 25 20 15 10 5 0 No of respondents Percentage
Inference: 43% of customers rated excellent, 35% of customers rated good & 22% customers rated satisfactory.
3.
Si .no 1 2 3 4
Percentage 31 51 31 4 100
Inference: 31% respondents are in the age group of 15-25 years.51% respondents are in the age group of 26-35 years.14% respondents are in the age group of 36-45 years.4% respondents are in the age group of46and above-25 years
4. The occupation of respondents. Table 4 Si. no 1 2 3 4 5 Occupation Business Employee Student Professional Others No. of Respondents 39 34 13 11 3 Percentage 39 34 13 11 3
Total
100
100
Occupation of Respondents
45 40 35 30 25 20 15 10 5 0
Inference: 39% respondents are businessmen. 34% respondents are employees.13% respondents are students.11% respondents are professionals. 3% respondents are other.
5.
The income group of the respondents Table 5 Sl .no Income group No .of respondents 1 Less than 25 25 Percentage
5000 2 3 4 5000-10000 10000-15000 15000 and above Total Income Group of Respondents
50 45 40 35 30 25 20 15 10 5 0
45 17 13
45 17 13
100
100
Inference: 25% respondents are in the income group of less than Rs.5000/- 45% respondents are in the income group of Rs. 500010000.17% respondents are in the income group of Rs. 1000015000.13% respondents ate in the income group of Rs 15000 and above.
6.
Regular purchases from mall. Table 6 Sl .no Particulars No .of respondents 1 2 Yes No Total 70 30 100 70 30 100 Percentage
30%
70%
Inference: 70% purchases regularly from mall & 30% does not purchase regularly.
7. Frequency of purchases by respondents from mall. Table 7 Sl .no Particulars No .of respondents 1 2 3 4 Occasionally Weekly Monthly Daily Total 33 31 36 00 100 33 31 36 00 100 Percentage
36
33
31
Inference: 33% of respondents made purchases from mall on occasion basis, 33% made purchases on weekly basis & 36% made purchases on monthly basis.
8. Customer preference for shopping. Table 8 Sl .no Particulars No .of respondents 1 Unorganized market 2 Mall Total 40 100 40 100 60 60 Percentage
Inference: 60% of respondents prefer unorganized market for shopping & 40% of respondents prefer mall for shopping.
9. Purpose for visiting City mall. Table 9 Sl .no Particulars No .of respondents 1 2 3 Shopping Entertainment Restaurant 46 38 16 46 38 16 Percentage
Total
100
100
16%
38%
Inference: 46% respondents visit city mall for shopping, 38% respondents visit mall for entertainment & 16% respondents visit mall for restaurants.
Table 10 Sl .no Particulars No .of respondents 1 2 Yes No Total 66 33 100 66 33 100 Percentage
33%
66%
Inference: 66% respondents are satisfied with the pricing schemes at city mall & 33% respondents are not satisfied with the pricing schemes at city mall. 11. Location of city malls affects respondents decision. Table 11
Sl .no
Location affects
Percentage
1 2
Yes No Total
70 30 100
30%
70%
Inference: 70% respondents said that location of city mall affects their decision & 30% respondents ignore the location problem.
Sl .no
Drawback in mall
No .of respondents 12 16 32
Percentage
1 2 3
12 16 32
Others Total
40 100
40 100
12%
40%
16%
32%
Inference: Respondents rated 12% expensive, 16% parking facility, 32% weekend rush & 40% other factors as main drawback of city mall.
13. Customer thinks about quality or price of mall. Table 13 Sl .no Particulars No .of respondents 1 2 Price Quality Total 67 33 100 67 33 100 Percentage
33%
67%
Inference: 67% respondents said that when they think about City Mall they think about price. 33% respondents said that they think about quality.
14. Respondents reason for shopping in the City Mall. Table 14 Si. no 1 2 3 4 5 Particulars Location Wide range of brands Ambience & Services Price Discount No. of Respondents 31 24 13 23 9 Percentage 31 24 13 23 9
Total
100
100
31% 23% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 5th Qtr
13% 24%
Inference: 31% of respondents shop in city mall because of location, 24% because of wide range of brand, and 13% because of ambience & services, 23% because of price & 9% because of discount.
Most of the customer still prefers to buy from unorganized market as they are located in customers residential area. Most of the respondents have mentioned that location, wide range of brands & price schemes are main reason for shopping in the city mall.
Location and ambience is rated as strongly agree by majority of the respondents in terms of attributes such as mall location is convenient, mall looks modern & well equipped, ambience is appealing.
It is found that the most of the respondents has rated as excellent for the quality. Some of the respondents said good and fair. Service attributes has been rated very satisfied by most of the respondents. Some of the respondents have rated satisfied for the service attributes. Few of the customers felt dissatisfied with attributes such as post sales problems solved immedidetly and parking is sufficient.
Most of the respondents are of the opinion that very much satisfied with shopping at mall.
SWOT
6.1 Strengths:
Increase Convenience of Shopping through mall Mall provide quality goods and services Mall offers a safe and secure shopping environment Mall provides a wider range of goods and services locally Mall focus on entertainment, restaurants, convenience etc. Expansion opportunities for mall High representation and commitment of nationals Provision of public transport facilities for mall Increased consumer volume towards mall Increased safety & security in mall Availability of stock in mall
6.2 Weaknesses:
Increased level of competition Price competitiveness Product duplication
6.3 Opportunities:
Consumer Elasticity towards mall Growth in household income Provision of lower priced products and services to the mass consumers by mall Government support to mall
Network opportunities for mall Mall provides business premises at affordable levels Increased consumer confidence towards mall
6.4 Threats:
Increase in crime Lack of community support towards mall Lack of local government support towards mall Wrong location
7. CONCLUSIONS
After conducting the survey and analysis the data collected, it can be concluded that: Service & facilities provided needs improvement. Need of improvement in feedback communication. There is a need for the adoption of innovative tools and techniques. Customer service is all about the customers perception. You have to do more than just get the job done.
9. Appendix
1. Through which media you come to know about city mall? [ (a) Television (b) Print/Magazine (d) Hoardings
3. What is your age? (a) 15-25 (c) 36-45 (b) 26-35 (d) 46 & above
4. What is your occupation? (a) Business (c) Student (e) Other (b) Employee (d) Professional
5. What is your income? (a) Less than 5000 (b) 5000-10000 (c) 10000-15000 (d) 15000 & above
7. What is your frequency of visiting city mall? (a) Occasionally (c) Monthly (b) Weekly (d) Daily
8. Do you prefer unorganized market or city mall? (a) Unorganized market (b) City mall
9. What is your purpose of visiting city mall? (a) Shopping (c) Restaurant (b) Entertainment
10. Are you satisfied with the pricing schemes of city mall? (a) Yes (b) No
11. Does location of city mall affect your decision? (a) Yes (b) No
12. What is the main drawback of the city mall? (a) Expensive (c) Weekend rush (b) Parking facility (d) Other factors
13. Do you prefer price or quality of city mall? (a) Price (b) Quality
14. What is your reason for shopping from city mall? (a) Location (c) Ambience (e) Discount (b)Wide brands (d) Price schemes
10. Bibliography
Title
1. Marketing Management 2. Marketing An Introduction
Author
Philip Kotler Gary Armstrong & Philip Kotler
Websites:
1. WWW.Retail India.com 2. WWW.Google.com