Research Paper

1. TECHNOFAME- A Journal of Multidisciplinary Advance Research
12
Vol.3 No. 1, 12- 16 (2014)
Received: Feb.2014; Accepted: May 2014
Factors Affecting the Customer Satisfaction in Retail Market in India
(With Special Reference to Delhi and NCR Customers)
Dhiresh Kulshrestha
Associate Professor - Department of Management
Institute of Professional Studies-Gwalior M.P.
E-mail id: drdhireshkulshrestha@gmail.com
Abstract
Although producers may sell directly to consumers, it reduced the price of the product and
increase profit of manufacturer because of deduction in the expenditure on the middleman, but such
method of physical distribution of goods to ultimate customers are inconvenient, and time consuming
as compared to the job performed by a expert retailer in the distribution channel. The manufacturers
depend on the retailers to sell their products to the ultimate consumers and provide them a satisfactory
distribution method. Customer satisfaction is very crucial for any business because satisfaction is
effective tool to bring customers back and get positive response about business from the customers
along with others, who may then try the product you offer for themselves and in their turn become
loyal customers. In starting phase the retail industry in India was mostly unorganized; however with
the change of tastes and preferences of the consumers, the industry is getting more popular these days
and getting organized as well. With growing market demand, the industry is expected to grow around
30% every year after FDI increasing.
Key words: Customer satisfaction, Retail Sector, Post reform period, distribution channel, FDI
policy
Introduction
After economic reform the retail
sector grow very fast especially in the last
decade in Indian Economy. The Indian
retail industry is the fifth largest in the
world and one of the fastest growing
industries in India. Retail industry includes
organized and unorganized sectors. In
starting phase the retail industry in India
was mostly unorganized; however with the
change of tastes and preferences of the
consumers, the industry is getting more
popular these days and getting organized
as well. With growing market demand, the
industry is expected to grow around 30%
every year after FDI increasing. Retailing
includes all the activities involved in
selling goods or services directly to final
consumers for personal, non business use.
A retailer or retail store is any business
enterprise whose sales volume comes
primarily from retailing
[2]
. There are the
following types of retailers by marketing
strategy:
As there is a though competition
among the manufacturer it is the customer
satisfaction which provide the comparative
advantage and retail sector can play a
crucial role in the present competitive
world to satisfied the customer because
they have direct contact with final
consumer. Customer satisfaction depends
on the offer’s performance in relationship
to the buyer’s expectation
[3]
.

2. TECHNOFAME- A Journal of Multidisciplinary Advance Research
13
Losing profitable customers can
dramatically affect a firm’s profits. The
cost of attracting a new customer is
estimated to be five times the cost of
keeping a current customer happy. The key
to retaining customers is relationship
marketing. To keep customers happy,
marketers can add financial or social
benefits to products, or create structural
ties between the company and its
customers
[2]
. The present study premises
that the use of a single standard of
comparison is not enough to compare the
customer satisfaction in retail sector. The
major factors directly affecting the
customer satisfaction are, Price benefits,
Delivery service, Shopper assistant
behavior, Right quality and quantity and
Credit facility.
Materials and Methods
The study is based on the primary data
collected from 200 customers from Delhi
and National Capital Territory. The
respondents were selected in such a way
that they are customers of retail sector.
The people who were not purchasing
goods from retail sector are not included in
area of study. The primary data was
collected through a questionnaire. They
seriously consider the factors before
answering the questionnaire in order to
find out the most significant factors which
influence the respondents while arranging
customer satisfaction in retail sector,
Garrett’s ranking technique is used. As per
this method, respondents have been asked
to assign the rank for all the factors and
outcome of such ranking have been
converted into score value with the help of
the following Formula:
Where,
Rij = Rank given for the ith factor by
jth respondents
Nj = Number of factors ranked by
jth respondents.
The percentage position of each rank thus
obtained was converted into scores by
referring to the table given by Henry
Garret. for each factor the scores of
individual respondents for whom scores
are added the mean score for all the
factors are ranked by arranging in
ascending order which ultimately reflects
the customer satisfaction in retail sector
in India.
Results and Discussion
Table 1 reflects the different age groups
of customers purchasing home loan from
retail sector. On the basis of findings
from the Table 1, it is clear that people
from the age group of 26 to 34 are the
most potential and the important
customers for the retail sector. Total 36
per-cents of the respondents belong to
this category.
Comparison of Age Profile of
Respondents
Table 1 Distribution of Respondents by
Age
Age Retail Sector
No. of
Respondents
%
Above18- 26 36 18.00
Above 26-34 72 36.00
Above34-42 52 26.00
Above 42 40 20.00
Total 200 100.00
Comparison of Income Group Profile of
Respondents
Table 2 indicates the response of the
respondents from different income groups.

3. TECHNOFAME- A Journal of Multidisciplinary Advance Research
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It is clear that people from income group
above 9 lakh per annum, only 12 per-cent
respondents are going towards the retail
sector banks. Table no. 2 shown that
important and potential customer is above
3 lakh and under Rs 6 lakh income group
so there is a need to focus more on this
income group.
Table 2 Distribution of respondents by
income group
In Lakh Retail Sector
No. of Respondents %
Under 3 48 24
Above 3-6 76 38
Above6- 9 52 26
Above 9 24 12
Total 200 100
Respondent’s Gender
The Indian economy society is male
dominated. Maximum of the family
liabilities are fulfilled by the males. They
arrange the goods and services for various
purposes. The total percentage of male
respondents is 56 per-cents and number of
women respondents taking home loan is
slightly low and they are only 44 per-cent.
It reveals that males are dominating in
retail sector as compared to the females
but this gap is slightly low(Table- 3).
Table 3 Distribution of respondents by
Gender
Gender Retail Sector
No. of Respondents %
Male 112 56
Female 88 44
Total 200 100
Respondent’s Occupation
Table 4 shows the different occupations of
the respondents, who purchase goods from
retail sector. The customers belong to
different occupation but the housewife
dominates. It is clearly reflected by the
Table. The total percentage of the
housewife respondents are 36 per-cents.
The 10 per-cent respondents of retail
sector are professionals. The above table
reflects the housewife is leading customers
of retail sector and professionals are
comparatively low.
Table 4 Distribution of respondents by
Occupation
Occupation Public Sector Bank
No. of Respondents %
House wife 72 36
employee 46 23
Business man 32 16
Professionals 20 10
Others 30 15
Total 200 100
Respondent’s Education
Table 5 reveals that metric to graduation is
the leading customer group when we
compare the education level of the
customer in retail sector, 38% of the
respondent belongs to this group out of the
total respondent. There are others which
carry 27%, may be illiterate or below
metric etc.
Table 5 Distribution of respondents by
Education
Education Retail Sector
Respondents %
Post graduation 22 11
Graduation 48 24
Metric to
Graduation
76 38
Others 54 27
Total 200 100

4. TECHNOFAME- A Journal of Multidisciplinary Advance Research
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Customer’s Awareness about Offers
Given by Retailer The different offers are
provided by retail sector on purchasing of
goods but these offers are very
complicated and not easy to understand.
The Table 6 shows that 68 per-cent
respondents are aware about the offer of
retail sector. It shows that either salesman
does not clearly explain all offers to
customers or they are very complex in
nature and not easy to understand. 32 per-
cent respondents represent this problem so
it is required in favor of customers that
retailer have to reduce the complexity of
offers.
Table 6 Awareness about Offers Given
by Retailer
Gender Public Sector Bank
No. of
Respondents
%
Yes 136 68
No 64 32
Total 200 100
Customer’s Perception about the Retail
Sector
The Table 7 shows that most of the
respondent’s perception about the retail
sector is excellent and good. 74 per-cents
of the total respondents have this
perception. Average and below average
perception of respondents is comparatively
low and it is only 26 per-cents.
Table 7 Customer’s Perception about
Retail Sector
Retail Sector
pinion of the
Customers
No. of
Respondents
%
Excellent 66 33
Good 82 41
Average 28 14
Below Average
24 12
Total 200 100
Table 8 Factors Affecting Customer
Satisfaction in Retail Sector: The factors
influencing the customer’s satisfaction in
the retail sector are given in Table 8. These
factors are Price benefits, Delivery service,
Shopper assistant behavior, Right quality
and quantity, Credit facility. The 200
respondents assigned rank to the factors,
which are affecting the customer
satisfaction in retail sector. The
respondents give IST, IIND and IIIRD
rank to the factors, which shows most of
the customers are highly satisfied, satisfied
or average satisfied, it is 87.13% of the
total ranks. IVTH and VTH rank which is
representing dissatisfied and highly
dissatisfied customers. These factors get
only 12.83% of total ranks, it is relatively
low. It means the satisfaction levels are
high and dissatisfaction levels are low in
retail sector
[5]
.
Table 8 Factor influence retail sector.
Rank
Factor
No. of Respondents
I II III IV V
Total
Price benefits 12 110 54 12 12 200
Delivery
service
18 66 72 28 16 200
Shopper
assistant
behavior
12 66 96 12 14 200
Right quality
and quantity
26 126 30 12 6 200
Credit
facility
20 60 78 30 12 200

5. TECHNOFAME- A Journal of Multidisciplinary Advance Research
16
Ranking of Retail Sector The ranks provided to various factors
which affect the customer satisfaction in
the retail sector are shown in the Table 9:
Ranking of Private-Sector bank
Table 9 is formed on the basis of Table 8
with the help of Henry Garrett’s ranking
technique (explained earlier). According to
table the retail sector respondents give the
IST rank to the right quality and quantity
(total score 11622, mean score 58.11) and
the IIND rank given to the price benefit
involved (total score 10956, mean score
54.78) .Respondents given III RD rank to
the shopper assistant behavior (total score
is 10464, mean score 52.32) IVTH rank is
given to the credit facility by respondents
(total score 10458, mean score 52.29).
Table 9 Ranking of Private-Sector bank
VTH rank is delivery service (total score
is 10386, mean score 51.93). No doubt the
right quality and quantity score is very
high so it is providing the maximum
satisfaction to the respondents in there
retail sector and delivery service is
providing less satisfaction as compare to
others
[4]
.
Sl.
No
Factors Private Sectors Bank
Total
Score
Mean Rank
1. Price
benefit
10956 54.78 II
2. Delivery
service
10386
51.93
V
3. Shopper
assistant
behavior
10464
52.32
III
4. Right
quality
and
quantity
11622 58.11 I
5. Credit
Facility
10458 52.29 IV
References
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