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Quality of store based retailing: A Case Study of Impact of retail facilities on the customer satisfaction in the city of Ajmer

Research Paper (postgraduate) 2011 45 Pages

Business economics - Trade and Distribution

Excerpt

Introduction

Retailing is an important activity of the marketing because it connects the consumers with manufactures. The goods from the various parts of the world reach to the consumers through the retailers. The Retail sector is important for human life because it crystallizes the dreams and passions of the life to build the beautiful events of life of marriage birthdays and parities’. The retail sector can get the advantage in the market by giving better services and products to the consumers. The value of services given in the retail also increases the satisfaction and connects the local brand with the customers. The store brand is important in the local areas to attract the consumers. The Indian economy is growing at a fast pace with the impact of globalization and liberalization. The growth of the economic system of any society is reflected by the presence of goods and services available in easy locations with comfort and convenience. The standard of living of people can only increase if they get sophisticated and technical services to make life fast and connected to the global forum. Goods and services are essential to build a comfortable life by which people can reach to better heights. The retail sector is the measures of growth and development of any economy. Retail sector have a significant role in the growth of the Indian economy. The retail sector needs the support of good facilities and promotion to in a sustainable way. The impact of information technology and global distribution channel can build the base of infrastructure to get in touch with the customers.

The concept and definition of Retail sector

The retail segment can be defined as the format of business which sells goods and services to the customers directly by building communication.

Figure -1 The retail sector and the services given to the society

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The retail sector is the engine of the economic development for any economy. They respond to the needs of community and try to develop the network of services and product to give employment and comfort to people and help the society to grow in a better way. The retailers need to understand the local problem and try to design the facilities according to the needs of the customers in any local area. The retail sector forms the major plank of India’s economic development and they have the strategic importance due to contributions in terms of output, employment and development. The retail sector accelerates the sales of products in the market.

1. The resources needed for the growth of Retail sector

The retail sector can only grow, if they have the spirit to sell excellent products and the ability to constantly improve the variety and innovation through the better procurement systems. The continuous improvement and innovation can build the base to promote their products in the wider markets. The basic resources needed by the retail sector are as follows:

- Men
- Machine
- Material
- Method
- Market
- Money
- Management

Figure -2 Resources needed by the retail sector

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The retail sector needs to develop the workforce with the abilities and competencies to harness the best ideas and services to be given to the society. The multi- skilling of employees and team work can help to get the better share of the markets. The quality and the cost have to be under control to build the base. The retailers can gain the cost competiveness and the advantage in the market by managing the administrative and operating cost and passing the savings to the customers by giving them products at lower prices.

Importance of marketing in the retail sector

The marketing of goods and services is important for the retailers also because they build the local connections. The retailers must understand the customers. They need to build the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

Figure -3 The simple marketing management process for the retailers

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The value creation by the retailers for the customers

The retailers must give the product or offerings that can deliver value and satisfaction to the target buyers. The buyer chooses between different offerings on the basis of delivered value. The value can be defined as the ratio of what the customer gets and what he gives.

Figure-4 Value creation for the customer in the retail sector

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The retail plans need to connect with the market and build the relationship with the customers to get the value and ethics of satisfaction .The implementation is important and the diagnosis of the gap is important to take the corrective action by looking in the detail needs of the customers.

Literature Review

According to Aaker (1992) - The firm’s competitive advantage is to build the competencies. Having the right distinctive marketing competencies for choosing an appropriate strategy enables the firm to successfully create a sustainable competitive advantage because the skills of the firm create the values and assets.

According to Berry 1988; Boulding ., 1993; Duffy and Ketchand, 1998; Fornell ., 1996; Jun ., 2004; Sivadas and Baker-Prewitt, 2000; Taylor and Baker, 1994) – The service quality offered by retail stores is a significant determinant for customer satisfaction

According to Bennett and Higgins, 1988; Dabholkar , 1995; Yong, 2000. – The service quality impacts the customer retention in the retail sector

According to Siu and Cheung, 2001; Raphel, 1999; Reichheld and Sasser, 1990; Srinivasan, 2002). - The consumer shopping behavior, customer satisfaction and loyalty behavior have become important issues in today’s retailing market because a company’s success in financial performance and market shares largely depends on the satisfied customer who are willing to purchase products or services repeatedly and recommend the company’s products or services to other consumers .

According to Aaker 1992; Conant 1993 – The competencies have to match with the functional strategies.

According to Day and Wenslay 1988- The possibility of a sustainable competitive advantage but can lead to the completive advantage.

According to Bates 198 9 – the retail structure has the impact on retail performance.

According to King & Ring 1980 - the retail performance is also impacted by the retail positioning.

According to Homburg 2002 - the service orientation is also important for retail success.

According to Walters 1988; Lowson, 2001; Lynch, Keller, & Ozment 2000; Palmer & Markus 2000; Radder 1996; Leung & Taylor 2002-- and a range of marketing mix strategies have a major impact on the retail performance .

According to Aaker (1992); Conant (1993); and Day & Wensley (1988) - the basic competencies for the retail sector are:

1. Knowledge of current customers
2. Knowledge of competitors
3. Knowledge of prospective customers
4. Knowledge of industry needs
5. Awareness of weaknesses
6. Segmenting and targeting markets
7. Accuracy of forecasting
8. Differentiation of store
9. Customer service
10. Allocation of finances
11. Selecting new products and lines
12. Effective pricing
13. Effective advertising
14. Store layout and merchandising
15. Atmospherics
16. Effective PR
17. Handling complaints
18. Store image
19. Civic Involvement
20. Putting plans into action
21. Aware of strengths
22. Employee Training
23. Store location
24. Control of retail programs.

According to Siu and Cheung (2001) - RSQS scale is important and usefulness is in a departmental store chain in Hong Kong. They identified six dimensions of retail service quality:

- personal interaction
- physical appearance
- promises
- policy
- convenience
- Problem solving.

According to Kim and Jin (2002) tried to validate RSQS in the context of discount stores for US and Korean customers. RSQS was found to provide a good fit by using only three dimensions of retail service quality namely,

Physical aspects

Reliability

Personal attention

According to Moreno, 2008; Misterek, Dooley and Anderson 1992- the productivity and the growth of the retail sector is determined by the decisions talent at the tactical, strategic and policy level.

According to Dabholkar, Thorpe and Rentz (1996) developed the retail service quality scale (RSQS ) to measure service quality in retail settings .They proposed six dimensions in retail service quality namely

- Physical aspects
- Reliability
- Personal interaction
- Problem solving
- Policy.

According to Boshoff and Terblanche (1997) have tested the validity and reliability of the RSQS in South African retail environment and found the instrument suitable for studying the retail service quality of South African retail industry which comprises of department stores, specialty stores and hypermarket that offers a mix of goods and services.

According to Mehta, Lalwani and Han (2000) have studied the usefulness of RSQS as a tool for measuring the service quality of retail outlets of different categories in Singapore.

According Subashini Kaul (2005) has examined the applicability of RSQS in the context of Indian specialty apparel stores.

According to D ub elaar, Bhargava and Ferrarin (2001) -The usage of productivity at strategic and tactical levels of decision making for the retail business sector

According to Wlaters and Laffy 1996 -The decisions of differentiation, positioning, growth as well as diversification impacts the productivity of any organization

According to Ingénue, 1984; Ortiz – Buonafina, 1992; Nooteboom, 1983 -The productivity and growth is also impacted by the inter – industry performance and the government policies

According to A rndt and Olsen (1975), Ingene (1982 and 1985), Ratchford and Brown (1985), Ratchford and Stoops (1988), Kamakura, Lenartowicz and Ratchford (1996), Reardon, Hasty and Coe (1996), Reardon and Vida (1998), Keh and Chu (2003). – The productivity is also impacted by the impact of intangible services and values provided by the retail sector. The changing environment also influences the demand and work process

According to K o ss and Lewis, 1993; Forrester, 1993; Misterek, Dooley and Anderson 1992 - the definition, method of measurement and context of usage of the term productivity is the ratio of output to input

Figure – 5 The retail t planning and implementation

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Figure -6 The factors impacting the development of Retail sector in any economy

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The impact of environment on the retail sector

The retail sector is also impacted by the macro and the micro environment. The macro environment consists of the socio- cultural environment and the technological environment. The internal strength and development can create the value for the retail sector to stand in the market with the better ethics of sustainability and growth.

Figure - 7. The macro-environment of the firm

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The trends of retailing in the Indian economy

- India’s economy has undergone a substantial transformation since its independence in 1947
- Agriculture now accounts for only one-fifth of the gross domestic product (GDP), down from 59 percent in 1950, and a wide range of modern retail sector and support services now exist.
- Starting in 1992, India began to implement trade liberalization measures.
- The economy has grown—the GDP growth rate ranged between 6 and 8 percent annually over the period 1992-2010 and considerable progress has been made in loosening government regulations, particularly restrictions on private businesses
- Currently, India is one of the fastest growing economies in the world and By 2030, India would be one of the Top 5 economies in terms of GDP
- The India retail market is estimated at US$ 470 Bn in 2011, accounting for ~35% of GDP and is expected to grow to US$ 675 Bn by 2016, @ CAGR of 7.5%
- The organized retail market is estimated at US$ 26 Bn and accounts for ~6% of the overall retail market for 2011. The organized retail market is projected to grow to US$ 84 Bn by 2016, @CAGR of 26%
- With an estimated market of US$ 325 Bn, the Food & Grocery segment is the single largest retail category and accounts for 70% of the total retail market in 2011. The organized retail segment for Food & Grocery is estimated at ~US$ 9 Bn and accounts for 35% of all organized retail
- The retail market in India offers significant opportunities for retailers & brands across categories. This is driven by factors such as a large consumer base, rising incomes & job opportunities, increasing consumer awareness, etc
The future estimate of the Indian retail market
- The retail market in India is estimated at US$ 470 Bn in 2011 and is projected to grow to US$ 675 Bn by 2016, CAGR of 7.5% for the period 2011-16
- The organized retail market in India is estimated at US$ 26 Bn in 2011 and is projected to grow to US$ 84 Bn by
- 2016, CAGR of 26% for the period 2011-16
- Food and Grocery market in India is estimated at US$ 325 Bn in 2011 (69% of the overall retail ) and is expected to grow to US$
- 425 Bn by 2016 (63% of the overall retail ), @ CAGR of 5.5%
- The organized Food and Grocery retail market in India is estimated at US$ 9 Bn in 2011 and is expected to grow to US$ 34 Bn by 2016, @ CAGR of 30%
- Apparel market in India is estimated at US$ 35 Bn in 2011 and is expected to grow to US$ 50 Bn by 2016, @ CAGR of 7.5%
- The organized Apparel retail market in India is estimated at US$ 5.5 Bn in 2011 and is expected to grow to US$ 8 Bn by 2016, @ CAGR of 8.5%
- The Jewellery & Watches market in India is estimated at US$ 26 Bn in 2011 and is expected to grow to US$ 44 Bn by 2016, @ CAGR of 11.5%
- The organized Jewellery & Watches retail market in India is estimated at US$ 2.5 Bn in 2011 and is expected to grow to US$ 7.5 Bn by 2016, @ CAGR of 25%
- The Home Furnishings and Furniture market in India is estimated at US$ 8 Bn in 2011 and is expected to grow to US$ 17 Bn by 2016, @ CAGR of 13.5%
- The organized Home Furnishings and Furniture retail market in India is estimated at US$ 0.7 Bn in 2011 and is expected to grow to US$ 1.2 Bn by 2016, @ CAGR of 12%
- The Food & Beverages Services market in India is estimated at US$ 9 Bn in 2011 and is expected to grow to US$ 16 Bn by 2016,@ CAGR of 12.5%
- The organized Food & Beverages Services retail market in India is estimated at US$ 1.5 Bn in 2011 and is expected to grow to US$ 6 Bn by 2016, @ CAGR of 30%
- The Consumer Electronics, Durables, Mobiles & IT market in India is estimated at US$ 23 Bn in 2011 and is expected to grow to US$ 43 Bn by 2016, @ CAGR of 13.5%
- The organized Consumer Electronics & IT retail market in India is estimated at US$ 4 Bn in 2011 and is expected to grow to US$ 18 Bn by 2016, @ CAGR of 35%
- The Pharmacy market in India is estimated at US$ 14 Bn in 2011 and is expected to grow to US$ 23 Bn by 2016, @ CAGR of 11.0%
- The organized Pharmacy retail market in India is estimated at US$ 0.8 Bn in 2011 and is expected to grow to US$ 4.5 Bn by 2016, @ CAGR of 41%

Figure-8 – The retail categories and the future forecast

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The retail categories in India

- For the top 8 retail categories ~50% of the retail stores are present in top 25 cities
- Categories like Apparel, CDIT & Footwear are relatively mature retail categories and have a wider retail presence, mostly accounted for by smaller cities (>60% of the stores
- In the last 10 years India has added $ 930 billion to its economy and will add almost double of that (about $ 1700 Billion) in the next 10 years
- The Indian economy in 2020 is poised to become bigger than the current size of countries like France, UK or Italy CAGR of 30%

Figure - 9 – The countries and their GDP

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Source IMF

Forces impacting the retail business

The retail sector is impacted by the various forces of the global era. The force of modernization is building better formats of doing business to grow in an innovative way. They can grow in a better way by the focus on the following areas:

Globalization and liberalization -T he impact of technology has changed the landscape of business where the connectivity and communication has become important to support the development and growth of the retailers. The computers and internet technology have become important to take leap to the national and international markets where the suppliers and manufactures can meet to give the best options to the customers by building the global distribution channels.

Financial strength - The small retail sector can also grow in the market because of the financial availability from the banks and the funding agencies. The retail sector needs to focus on the integration to access to the larger markets with higher demands.

Technological needs - The technological needs of the retail sector are changing in the era of modernizations. The computers and technology can build the efficient purchasing technique to build the good sourcing for the retails.

Skill Development & up-gradation- The retail sector cater to the local needs of the people with the standardized services. The employees need the creative and innovative skills to understand the market and respond to the changes. They need to be trained in order to increase the talents and competencies to foster faster growth

Lowest administrative cost - The products are given at reasonable cost because of savings from administrative cost which is a burden for very large scale manufactures. This retail sector grows because few family members manage the business on their own with minimum cost.

Maximum potential for employment generation - Since the retail sectors are connected to the local fabric so the employment is highest, as the retail sector can harness the local talent according to the resources available in any area.

Advantages of the Retail sector

The Retail sector is the backbone of any economy and it can help in the prosperity and growth of the regions. The basic advantages of retail sector are:

- Having local contacts
- Inducing growth of the local economy
- Lowering the transaction cost
- Development of infrastructure
- Innovation of products and services
- Closeness to customers

Figure – 10 Impact of small scale operations

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Impact of Information & Communication Technologies

The basic impacts of ICT’s are

- Converting the world into a global village
- Enables an unprecedented exchange of information
- Leads to a new era of communication
- Decrease transaction cost
- Builds efficient distribution channel
- Helps in collaboration and networking
- Build the customised services
- Givens the growth to online shopping
- Enables the retailers to participate in global value chains & international joint development

Figure – 11. The impact of information technology

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Roadblocks in retail Development

- Problem of connectivity
- Lack of infrastructure
- Information base is small
- Retailers have limited capacities
- Complex policy Environment
- Tough competition against foreign companies that enter the home market

Global competition brings many opportunities of

- Wider Market Access
- Technological innovations
- Skill up gradation
- Wider exposure to the opportunities

The store brand management

The store Brand influences the local market and puts the impact on the:

- Customers
- Sales
- Marketing
- Customer Service
- Delivery People and Distributors
- Competitors

The product has to be differentiated to sell the product in the market to build branding, quality, innovation, style and image. The creativity and better ideas in the market help the organizations to work by reducing rivalry, substitutes & buyer power. The objective is to build the segmentation and serve a small segment with the unique features and specialization. The right mix of marketing and sales support elements include the:

-Shared advertising
-Public relations
-Networking
-Training
-Promotion

The store and retail marketing management has to build the persuasive communication designed to inform consumers about the product or service and influence them to purchase these goods or services. This could be through with

- Direct selling
- sales representatives
- Promotions and Advertising
- Public relations and Marketing communications
- Networking and Marketing communications
- Web Sites and Blogs
- Brochures and Catalogs

Figure – 12. communication with the customers

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The strategic inputs for developing the successful retail business model

The strategy to build the successful business model must be able to imbibe the identity and personality of the brand to give higher value to the customer. The structure of the strategy of the retailers needs to build the brand experience to connect with the customers. The ultimate profitability depends on returns to on the money invested. The brand architecture can include emotional benefits, functional benefits, physical benefits, product attributes, occasion appropriateness and a variety of other intangibles

Figure – 13. The successful business model for the firms

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Retail sector is the backbone of any economy and the pulse of the business system. The health of any society is reflected by the quality of services and products available in any local market because that reflects the financial health of the people. The impact of technology has given the birth to the innovative marketing practices for the development of better services which are fair, transparent and ethical for the enhanced customer satisfaction. The retail sector is changing a nanosecond pace. The markets are impacted by the cut -throat competition where there are many players. The services providers have to provide personalized and customized services with the quality practices. The new economy is based on the digital revolution. The management of information can be infinitely differentiated, customized, and personalized. It can be dispatched to a great number of people who are on a network and it can reach them with great speed.

Building trusted and ethical relationships

The retail bus iness has to build the customer experience and this can cultivate the relationship which is secure and loyal. A relationship has to be of quality where the mutual trust and faith are essential to build the loyalty. Ethics are fundamental to any relationship and it includes the moral duty to take care of the customers and give the value added services with element of mutual respect and security. The ethical and innovative services have to be

- Value-oriented framework, analyzing ethical problems on the basis of the values of honesty, autonomy, privacy, transparency

- The Process-oriented framework for giving the better price, promotion, placement.

- The after sales support of service and repair to solve the customer problems

The technological oriented Customer Services

The business plan for the firms must include new technologies with the ongoing support and maintenance of the infrastructure. The key customer service should include:

- Marketing and Sales
- Merchandising and Inventory management
- Building the empowered team of people

Figure – 14. the competencies of the retail market

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Building the selling effectiveness of the salespeople

The changing nature and effectiveness of marketing and advertising can increase if the sales people are trained to build the right attitude of the customers to give the quality services and build the connections in the market. The network of relationships can cultivated the business network of successful development of relationships. The retailers need to invest in building the solutions for enhancing the customer knowledge by building effective marketing decisions. The firms need to recognize more profitable customers and make them loyal and happy. The special and customized services can enhance the trusted relationship. They should experiment with more targeted forms of advertising such as e-mail, newsletter and direct mail pieces. The customer participation and loyalty can be created by the participation in the community services.

Building the effective distribution channels

The strategic use of public relations can help the Retail sector to tell the broader and more detailed story of the business to the customers. The creation of promotional events can help the firms to portray the personality of their businesses to the customers.

The retailers should join a buying group to access larger variety of latest raw material products to get the knowledge of latest trends of the market. They should establish the relations with the share groups and invest in attending more trade shows. They should work to establish an “anchor” brand that will signal and add credibility.

Using the social; networking sites and websites for building communication

The use of websites is essential in today’s modern era as the customers are connected to the world through the computers and the internet. The information through the websites can be helpful to give the updates of the products and promotions to attract the customers. This will build the image, value proposition and differentiation. The websites can give the latest products and the customized services.

The transparency of price and product information

The consumers have more knowledge and power due to the ease of getting information instantly from the Internet. The competition is not global but it is at the click of mouse. This creates the pressure for the firms to give the competitive prices to the customers. The product information and the promotions have to be fair and honest

Developing a modernized parking transport infrastructure

The development of parking spaces is essential to build the access of the customers. The parking spaces can give the comfort to the customers the autonomy to move with more autonomy

Developing a marketing network for the Retail sector

The marketing network c onsists of promoting the products through the advertising and building the websites for communication with the customers. The promotion of business through the websites will help in the better networking.

Figure – 15. Marketing network creation for Retail sector

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Marketing management for Retail sector

The marketing management depends on the development of distribution channels and the promotion of products through the brands. The value to the customer can be enhanced by building the customer relationships.

Figure – 16. The marketing management by developing the supply chains

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Building the effective marketing mix

The marketing mix consists of the product, price, place, promotion, people and processes. The product has to be a bundle of functional attributes and emotional attributes. The merchandise quality and design is essential to attract consumers. The place relates to the location of the retailers where the consumers can be connected in a channel to build up the satisfaction. The price has to be affordable. The employees have to be empowered to have quality communication with the consumers.

Figure -17. The parameters for building the effective marketing mix

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Building the marking mix for the retail sector

Product, Price, Place and Promotion constitute the 4Ps of marketing mix. The strategic decisions taken by the marketers of retail sector should be done in such a way that the commercial fate of the brands could be built by getting connected with the customers.

Promotion: Marketers and advertisers should be able to focus on markets through the use of mass media vehicles such as radio, print, hoardings and TV. The modern marketing and communication is also built by the mobiles and handsets to give the messages about the recent updates. The media mix to be used for promotion has to have high local relevance to increase the effectiveness.

Pricing: Affordability is a major issue in local markets. The price decisions should be according to the purchasing abilities of the people. The marketers can reach to the customers by giving lower unit pack sizes, packaging innovations and offering basic, functional products at reduced prices characterized the pricing customization. The smaller packs can give the options of buying to the customers with small pay pockets.

Place: The accessibility can be done by giving the right products at the right places where the can go the retailers and who are at convenient locations. The accessibility to the remote and far off locations is a huge challenge in the Indian markets. The building of the transport facility is essential to hake the success in the market

Product: The innovative customization can be done in a creative and a professional way to develop products by keeping the needs of customers in mind. The stores can display the products in a beautiful and a decorated way to give the appeal to the products.

The retail sector is creates the connections and helps the goods and services to move in the market with the help of the decorated stores. Retailing has impacted the human life to large extents because of the direct interaction for the purchase of goods. The human society’s standards are reflected by the advancement of the retail sector because this sector offers the value, services and products. The retailers are the neighbors in any society so they also build close relationships with the customers... They are the part and parcel of the urban and rural life because of the value created by meeting the needs of the customers. The civilization has seen the change in the retail sector with the impact of modernization and technology. The connectivity and collaboration is created to maintain the better touch and exchange of services. The communication has become easier in the modern era. The formats of the retail sector are changing from the single brand stores to the multiband. The foreign direct investment has given the birth to mall and superstores where there is a wide range of products and services with the impact. The facilities associated with these malls are of high level. The impact of technology has created with the ambience of good decoration. Technology is like an art and is touching the lives of people. It is a soaring exercise of the human imagination to give birth to creativity, the innovation and the designs.

Building quality retail services

The quality of retail services is the basis for the customer satisfaction to create good services with creativity and imagination to build the delicate fabric of life.

- The retail sector must have empowered team of trained people
- Safe and secured environment of building trusted relations
- Effective financing facilities
- Building the beautiful display of the merchandise
- Giving the local traditional and cultural products related to the festivals
- good locations and layouts
- packaging and promotion of goods
- price of the goods and the variety of the assortment
- customer services given and the relationship management

Dimensions of quality of retailing

The impact of customer satisfaction can be measured by the dimensions of the quality of the products and promotion. The impact is also reflected by the ability to build the efficiency to create the variety and designs. The packaging also influences the customer perceptions. The ability of the retailers to build the utilities and needs is important to give the identity and creativity to the personality of the retailer.

The dimensional are

- Location
- Assortment
- Price policy
- Promotional policy
- Personnel service
- Physical infrastructure

Dimension related to product

- Appearance
- Sensory
- Durability
- Newness
- Accessories
- Fun
- Celebrity tag

Dimension related to perception

- Perception
- Value and lifestyle
- Social status
- Workplace culture
- Personality
- Family motivation
- Brand image
- Store image Loyalty
- Shoppers’ interaction
- Media communication

Dimension related to economic aspects

- Economic
- Value for money
- Price sensitivity
- Cross promotion
- Value additions
- Uniqueness
- Credit facilities

Dimension related to store

- Store based
- Display
- Store promotions
- Availability
- Customization Store brands
- Designer brands
- Fashion simulation Product-mix

Dimension related Arousal

- In-store ambience
- Celebrity promotions
- Hands-on experience
- Take-home trials
- Customer involvement

Objective of the study

The basic objective of the study

- The factors impacting the retail sector

- To determine the impact of quality dimensions on customer satisfaction To frame the suggested strategy for providing the better education to the customers

Hypothesis

Null Hypothesis -H01: There is no significant difference about quality of retailing and customer satisfaction amongst customers classified by age

Alternative Hypothesis -Ha1: There is a significant difference about quality of retailing and customer satisfaction amongst customers classified by age

Null Hypothesis- H02: There is no significant difference about quality of retailing and customer satisfaction amongst customers classified by gender

Alternative Hypothesis -Ha2: There is a significant difference about quality of retailing and customer satisfaction amongst customers classified by gender

Null Hypothesis - H03: There is no significant difference about quality of retailing and customer satisfaction amongst customers classified by income level

Alternative Hypothesis- Ha3: There is a significant difference about quality of retailing and customer satisfaction amongst customers classified by income level

Null Hypothesis - H04: There is no significant difference about quality of retailing and customer satisfaction amongst customer’s classified education

Alternative Hypothesis- Ha4: There is a significant difference about quality of retailing and customer satisfaction amongst customer’s classified education

Null Hypothesis - H05: There is no significant difference about quality of retailing and customer satisfaction amongst customers classified by frequency of purchase

Alternative Hypothesis- Ha5: There is a significant difference about quality of retailing and customer satisfaction amongst customers classified by frequency of purchase

Research Methodology - The researcher contacted the respondents personally with well-prepared sequentially arranged questionnaire. The questionnaire prepared, was divided into two parts, of which part one was used to gather demographic details of the respondents.

Sampling Area - The study was conducted on the respondents i.e. the customers using the retail services Jodhpur city.

Population- All the customers

Sample size – The research focused on the participants who were willing to participate. Total 203 respondents filled the questionnaire.

Sampling Design – The sample was designed by the convenience based random sampling method.

Primary Data - Most of the data collected by the researcher was primary data through a structured questionnaire, which was operated on the samples of the customers of using the retail services in the city of Ajmer.

Secondary data - The secondary information was collected from the published Sources such as Journals, Newspapers and Magazines and websites...

Research instruments - A summated rating scale format was used, with six choices per item ranging from "highly dissatisfied” to "highly satisfy ". In this all the questions were positively framed to study the impact of independent variable like age, gender and education on the dependent variable which is student customer satisfaction. The six dimensions of quality of retailing where the average of the questions was taken into the consideration.

Analysis of Data - All the data collected from the respondents was feuded and tabulated and the analysis was done through the software of SPSS version 16...

Data analysis

ANNOVA analysis guidelines for one way ANOVAs:

1. Linearity and Non-Linearity Test by One Way ANOVAs:-

First of all it is necessary to use this test here and this test is given preference over vicariate correlation test because, we fear that our dimensions and demographic factor may bear a nonlinear relationship with Total consumer preferences and as we know to use the correlation coefficient correctly, a relationship between two variables must be approximately linear, when this assumption of linearity is violated, Pearson's product-moment coefficient of correlation or Spearman’s correlation coefficient will underestimate the strength of the relationship, that will ultimately result in completely wrong analysis. Therefore in our analysis we prefer to use One Way ANOVAs so as test both Linear as well as Non Linear Relationship. The dependent variable must be scale for accurate analysis. The independent variable cannot be Nominal. Therefore, the test cannot not be applied on Gender and education which are the part of Demographic variable

- Now, if in the test for homogeneity of variance, if the significance value is more than 0.05 than simply One way anova table will be checked, if there the significant value is less than 0.05 then Tukey HSD Post-hoc comparison for individual group difference will be checked if it show significant value less than 0.05 than the individual group differs.

- It is mandatory to look for test for homogeneity of variance only when the group is of nearly equal size. Welch test is more accurate than Brown-Forsythe test hence it would be given priority during analysis. For all those independent variables where homogeneity constraints was satisfied Tukey table for Post hoc comparison is shown and where robust estimates of Welch and Brown-Forsythe are looked, there Tamhane table for Post hoc comparison is shown (Monday, Klein, Lee, 2005).

Descriptive statistics

1. Gender

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Analysis- the males are 95 and females are 108

2. Education

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Analysis- there is three groups with 72 respondents below graduation

3. Income

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Analysis- there is four groups of 57 respondents have the income of 3-4 Lakhs

4. Age

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Analysis there is five groups of which 49 respondents are the age group of 35-40

5. frequency_of_purchase

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Analysis there is six groups of which 447respondents do purchasing thrice in a year

6. Tests of Normality

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Analysis- the value of sigma in Shapiro-Wilk is more than .05 so the data is normal

ONE WAY NOVA FOR TOTAL AVERAGE SATISFACTION BY FREQUENCY OF PURCHASE

7. Descriptive for frequency of purchase

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Analysis the mean of the respondent of group three is 2.177

8. Test of Homogeneity of Variances

Analysis – the value Levene Statistic is more .05 so the groups are homogenous

9. ANOVA OR F-Test

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Analysis – the value of sigma is less than .05 which shows that the groups are differing

10. Robust Tests of Equality of Means

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11. Post Hoc Tests Multiple Comparisons

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*. The mean difference is significant at the 0.05 level.

12. Homogeneous Subsets

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Analysis – the group with the frequency of purchasing for once in a year is less satisfied

ONE WAY NOVA FOR TOTAL AVERAGE SATISFACTION BY AGE

13. Descriptive

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Analysis – the group with 35-40 has the mean of 2.07

14. Test of Homogeneity of Variances

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Analysis – the value Levene Statistic is more .05 so the groups are homogenous

15. ANOVA

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Analysis – the value of sigma is less than .05 which shows that the groups are differing

16. Robust Tests of Equality of Means

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a. Asymptotically F distributed.

17. Post Hoc Tests Multiple Comparisons

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*. The mean difference is significant at the 0.05 level.

18. Homogeneous Subsets

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Analysis – the group in the age group of 20-25 is the least satisfied

ONE WAY NOVA FOR TOTAL AVERAGE SATISFACTION BY INCOME

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Analysis – The group with the income of 1-2 lakhs has the mean of 1.67

20. Test of Homogeneity of Variances

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Analysis – the value Levene Statistic is more .05 so the groups are homogenous

21. ANOVA

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Analysis – the value of sigma is less than .05 which shows that the groups are differing

22. Robust Tests of Equality of Means

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a. Asymptotically F distributed.

23. Post Hoc Tests Multiple Comparisons

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*. The mean difference is significant at the 0.05 level.

24. Homogeneous Subsets

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Analysis the group eiht the income of 1-2 laks is least satisfied

ONE WAY NOVA FOR TOTAL AVERAGE SATISFACTION BY EDUCATION

25. Descriptive

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Analysis- the group below graduation has the mean of 1.83

26. Test of Homogeneity of Variances

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Analysis – the value Levene Statistic is more .05 so the groups are homogenous

27. ANOVA

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Analysis – the value of sigma is less than .05 which shows that the groups are differing

28. Robust Tests of Equality of Means

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a. Asymptotically F distributed.

29. Post Hoc Tests Multiple Comparisons

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*. The mean difference is significant at the 0.05 level.

30. Homogeneous Subsets

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Analysis the group below gradation is least satisfied

ONE WAY NOVA FOR TOTAL AVERAGE SATISFACTION BY GENDER

31. Descriptive

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32. Test of Homogeneity of Variances

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Analysis – the value Levene Statistic is more .05 so the groups are homogenous

33. ANOVA

illustration not visible in this excerpt

Analysis – the value of sigma is less than .05 which shows that the groups are differing

34. Robust Tests of Equality of Means

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a. Asymptotically F distributed.

35. Contrast Coefficients

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36. Contrast Tests

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Does not assume equal variances

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Analysis – the group’s anre differneing

37. ANOVA Table

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Analysis – the value of R square is more than Eta so there is a nonlinear relationship of the factor with the average satisfaction

39. ANOVA Table

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40. Measures of Association

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Analysis – the value of R square is more than Eta so there is a nonlinear relationship of the factor with the average satisfaction

41. ANOVA Table

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42. Measures of Association

illustration not visible in this excerpt

Analysis – the value of R square is more than Eta so there is a nonlinear relationship of the factor with the average satisfaction

43. ANOVA Table

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44. Measures of Association

illustration not visible in this excerpt

Analysis – the value of R square is more than Eta so there is a nonlinear relationship of the factor with the average satisfaction

45. ANOVA Table

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46. Measures of Association

illustration not visible in this excerpt

Analysis – the value of R square is more than Eta so there is a nonlinear relationship of the factor with the average satisfaction

47. ANOVA Table

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48. Measures of Association

Analysis – the value of R square is more than Eta so there is a nonlinear relationship of the factor with the average satisfaction

T-TEST

49. One-Sample Statistics

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50. One-Sample Test

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Analysis – The customers are not satisfied with store related factor and perceptions of the employees. The arousal and promotion is also not making the customers satisfied

RESUTS OF THE HYPOTHESIS TESTING

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Inferences and implications

The research indicates that all the groups classified by age; gender and income level differ in their customer satisfaction process in city of Jodhpur... The groups classified by age, gender and parents’ income level also differ. T- Test shows that the dimensions like price promotion and personnel have negative values. The retailers must invest in giving assurance to the customers so as to build the trust and faith for better customer satisfaction.

The strategy to enhance satisfaction for the customers in the city of Jodhpur

The product quality needs continuous improvements because of the changing needs of the customers and the retailers must have upgraded skills and competencies to give the best impacts. The retailers should launch the innovative varieties to enhance the customer choices and interest. Diversity of specialization should be added to the variety to enhance the customer satisfaction. The customer satisfaction is essential to grow in any industry, so the retail sector must focus on building the customer experience amendment. The employees need to be trained to build the positive faith and trust by having the positive attitude the people need to focus on the promotion and point of purchase advertising to attraction the customers. The product display and decoration is important to attract the customers. The strategic inputs should be

- Accurate and effective decision making
- Efficient purchasing ability
- Building a good supply chain
- Building the networks
- Building the collaboration
- Managing the supply chain
- Developing better management abilities
- Redoing the administrative cost
- Efficient planning
- Building attractive promotions
- Focus on affordable price strategy
- Targeting the local markets
- Aching on the sale related to products used in festivals
- Focus on developing good sullies relationships
- Making the customers happy
- Bulling the dignified relationships of trusts
- Focus on quality
- Building the good demonstration techniques
- Building efficient personal selling habits
- Giving good presentations
- Focus on information on websites
- Assimilating and imbuing technology to grow
- Given in the innovative and creative solutions
- Building the sales support
- Forced on afters sales support
- Building the delivery and management

Conclusion

Retail is important because it connects the customer with the manufactures. The quality of retailing is essential for the better management of the customer satisfaction in any society. The desired quality enhances the loyalty and the repurchase intention of the customers. The retailers have to give creative and innovative solutions to the customers with the ethical turret and honesty . They have to provide quality and innovative products. The impact of globalization has given new challenges to the industry with better exposure to the modern trends. The retailers should give the value to customers by building the relationship based on trust and faith. The long term relationship can manage by the personalized communication process by better providing the honest information through the websites and the brochures. The product quality needs continuous improvements because of the changing needs of the customers and the retailers must have upgraded skills and competencies to give the best impacts. The retailers should launch the innovative varieties to enhance the customer choices and interest. Diversity of specialization should be added to the variety to enhance the customer satisfaction

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Details

Pages
45
Year
2011
ISBN (Book)
9783656091769
File size
3.4 MB
Language
English
Catalog Number
v184382
Institution / College
Jai Narain Vyas University Jodhpur
Grade
Tags
quality case study impact ajmer

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Title: Quality of store based retailing: A Case Study of Impact of retail facilities   on the customer satisfaction  in the city of Ajmer