Presentation on customer satisfaction project in study analysis.

1. RETAIL CUSTOMER SATISFACTION-A STUDY OF ORGANIZED RETAIL OUTLET IN
AMRITSAR
Submitted in partial fulfillment for the degree of
Masters of Commerce to HINDU COLLEGE
Submitted to:-
Mrs Ruchi Sharma
Assistant
Professor of PG
dptt. Of
Commerce
Submitted by :-
Simpi kapoor
Roll no. -8324

2. Introduction on retail customer
Companies have relied only on differentiation of products and services to
retain their customers and also to satisfy the consumers. However, times
have changed, due to fierce competition from new players entering the
market, imitation of new features and increase in number of new offers,
customers have acquired new choices and they have also become more
price sensitive, which has forced marketers to adapt differentiated and
customer oriented strategies in order to stand out in the competition and
gain a competitive edge. In today’s competitive grocery store sector,
customer demands are bound to increase from time to time due to the
improvement of service quality in parallel with product variety. Due to the
tremendous growth of service industry in which retailing sector plays an
important role, it is vital to listen to the inner voice of customers´ needs to
create, increase level of satisfaction. Ultimately, effective satisfaction leads
to prospective long term relationship and loyalty through repeating
purchase and recommendation, which helps retailers maintain their
market share and position. Consumer´s needs have become sophisticated
and it is imperative that grocery stores look for building long term and
stable relationships with their customers. Top performing financial
institutions believe that customers are the purpose of what they do and
they very much depend on them; customers are not the source of a
problem and they should never make a wish that customers should go
away‟ because their future and security will put in jeopardy. That is the
main reason why financial institutions of today are focusing much
attention on customer satisfaction, loyalty and retention (Zairi, 2000).

3. Definition:-
The degree of satisfaction provided by goods and
services of a company as measured by repeat customers.

4. Explanation
 Totally satisfied customers are more likely to be
loyal customers. However the relationship
between customer satisfaction and loyalty varies
greatly across industries and competitive
situations. Competition is increasing and the cost
of attracting new customers is rising. The best
approach to customer retention is to deliver high
customer satisfaction and value that result in
strong customer loyalty and well developed
business relations Customer retention is more
important than customer attraction, and a key to
customer retention is customer satisfaction.

5. Gaps in customer satisfaction
Promotional
gap
Understanding
gap
Procedural
gap
Behavioural
gap
Perception
gap

6. A highly satisfied customer:
- Stays longer
- Buys more as the retailer
introduces new products and
upgrades existing brands
- Talks favourably about the
retailer and its merchandise
- Pays less attention to
competing brands and
advertising and is less
sensitive to price
- Offers products/service
ideas to the retailer

7. 1. To know the Customer satisfaction for retailers in Amritsar;
2. To measure level of satisfaction of the selected retailers;
3. To study the comparatively analyze customer satisfaction for those retailers;
4. To study the Consumer satisfaction towards making purchase at departmental
stores;
5. To explore the component of consumer satisfaction; and
6. To rank the factor of satisfaction.

8. Review of lierarture
 Fornell 1992
 Anderson and sullivian 1993
 Evan and lindsay 1996
 Gultinan , paul and madden 1997
 Gitome 1998
 Marsh and yeung 1999
 Anderson and jackobson 2000
 Bansal and gupta 2001
 Manju ran malik 2011 aimed to explore the components of retail
customer satisfaction and also invest relationship between each
components of retail customer satisfaction and customer
satisfaction level. Product characteristics, price factor, physical
aspect,promotional schemes,and personal interaction of retail
customer satisfaction were studied.

9. Case study
 The study was descriptive in nature total population was customer of organized
retail outlets of Amritsar. Three main retail outlets covered under study Easy day,
Reliance, Vishal mega mart. Sample size was 200 customers from three outlets.
Individual respondents were the sampling element. Judgement sampling
technique was used. Since the study includes the primary data, so a self designed
questionnaire was used for collecting the responses of the customers. In order to
find out validity and reliability of the questionnaire, a pilot study was undertaken
before proceeding with the actual survey. Appropriate modifications in contents
and format of the questionnaire were then incorporated in the light of experience
gained during the pilot survey, to finalize the questionnaire. The questionnaire
contained questions on the related aspects regarding their demographic and
socio-culture background, influencing factors and other related aspects.
 Accordingly the present study was done in Amritsar. The analysis of data collected
has been carried out by using simple frequencies, percentages for simple
frequencies and weighted average scores as well as 5 point likert-scale(5- highly
satisfied to 1- highly unsatisfied) has been calculated. Beside this, chi-square has
been made to draw the meaningful inference from the study. All this was done
with the help of SPSS software package.

10. Methods used
 3.1 CHI-SQUARE: The Chi-square statistics is used to test the
statistical significance of the observed association in a cross-tabulation.
It assists us in determining whether a systematic association exists
between two variables. The null hypothesis H0 is that there is no
association between the variables. The test is conducted by computing
the cell frequencies. These expected cell frequencies, denoted fe , are
then compared to the actual observed frequencies fo found in the
cross-tabulation to calculate the chi-square statistics . Assume the
cross-tabulation has r rows and c columns and a random sample of n
observation.
 Then the value of chi-square is calculated by
using the formula shown in equation (2):
 𝟀2 =∑(fo - fe)2/fe ....…………………… (2)
 An important characteristic of the chi-square statistics is the number
of degrees of freedom (df) associated with it. The number of degree of
freedom is equal to the product of number of rows (r) less one and the
number of columns (c) less one i.e. df = (r - 1) x (c - 1).

11. Second method used
isDIMENSIONS AND HYPOTHESIS
 Retail customer satisfaction consists of five dimensions: product characteristics, price
factor, physical aspects, promotional schemes, and personal interaction, based on RSQS
and suggestions from customers received during pilot survey.
 1. Product characteristics: product characteristics of retail stores include the quality of
products, good value for money, variety of products, and unique & trendy goods.
H01 there is no significant difference between product characteristics and customer
satisfaction.
 2. Price factor: price is the amount that a person has to pay for products/services he
purchased. This dimension includes fixed price, reasonable price, and affordable price.
H01: There is no significant difference between price factors and customer satisfaction.
3. Physical aspect: physical aspect has influence on preference of customers visit to a
retail store. It includes convenient location, parking space, outlet atmosphere, and lighting
arrangement.
H02: There is no significant difference between physical aspect and customer satisfaction.
 4. Promotional schemes: promotional schemes motivate the customers to purchase the
 Products from the retail store. Promotional schemes offered by the retailers include
credit facility, free gifts, discount, and coupons.
H03: There is no significant difference between promotional schemes and customer
satisfaction.
 5. Personnel interaction: the personnel interaction dimension includes salesperson’s
attentiveness, willingness to resolve queries, good manners, and helpfulness of
salespersons.
 H04: There is no significant difference between personnel interaction and customer
satisfaction.



12. Classification of the Respondents According To Their Preference
for Shopping
Goods and services No. of
responden
ts
Percenta
ges
Variety of products 71 35.5
Branded products 79 39.5
High quality products 29 14.5
Availability of necessary
goods
15 7.5
Prompt services 6 3
Total 200 100
Price No. of
respondent
s
Percentag
es
Fixed price 38 19
Reasonable price 95 47.5
Affordable price 67 33.5
Total 200 100

13. classifaction of respondents according to
location
ASSOCIATION TEST TO EXPLORE THE COMPONENT OF CUSTOMER
SATISFACTION
Location No. of
respondents
Percentages
Close to residence 165 82.5
Close to work place 25 12.5
Close to meeting place 10 5
Total 200 100

14. Great ideas for best customer
satisfaction
 When greeting a customer in person or on phone smile and
yes they will tell you the same use age- appropriate
greetings.
 Stay visible and available, and dn’t get irritated.
 Don’t go away or turn away or make your phone calls
while dealing or attending you customer.
 Develop a database with appropriate customer information.
Give some reward programs to frequent shopper customers .
 And about infrastructure is dirty bathrooms, messy drawing
rooms, stained floors, disorganized check out counters and
poor and burned lightning systems can keep good
customers from us at a bay. So keep the infrastructure
impressive, clean and healthy.

15. ACKNOWLEDGEMENT
 I want to sincerely thank to all the
contributories without whose efforts this
project would not have been completed in
such a short time.
 I am very thankful to Mrs. Richa Sharma,
under whose guidance I successfully
completed my project. Their capable,
creative and perceptive behavior helped to
gave a new outlook to my project.
 I also express my gratitude to all the
respondents for their active contribution &
cooperation during my project. I would like
also to thank to all my friends who helped
me to know the sources for collecting data .

16. Physical Aspects and Level of Customer Satisfaction
Physical
Aspects
Level of customer satisfaction Total
Score (%)
Rank
Highly
satisfied
Satisfied Neutral Dissatisfied Highly
Dissatisfied
Convenient location 45 106 41 8 0 788(25.08) 2
Parking space 49 112 36 0 3 804(25.59) 1
Outlet atmosphere 44 93 55 8 0 773(24.60) 4
Lighting arrangement 52 90 44 11 3 777(24.73) 3

17. Promotional Schemes and Level of Customer Satisfaction
Personnel
Interaction
Level of customer satisfaction Total
Score (%)
Rank
Highly
satisfied
Satisfied Neutral Dissatisfied Highly
Dissatisfied
Salesperson’s
attentiveness
28 102 59 11 0 747(23.66) 4
Willingness to
resolve query
51 95 39 15 0 782(24.78) 3
Good mannered 55 115 22 0 8 809(25.33) 2
Helpfulness of staff 64 95 36 5 0 818(25.92) 1

18. conclusion
Hence, it concluded majority of the respondents visit organized retail outlets are branded products. Major motivator aspects regarding
price are reasonable price when compared with product quality and fixed price. Regarding the location, it can be concluded that
customers chose to shop at organized retail outlets that was close to residence.
Chi square test indicates that product characteristics are insignificantly related with the customer satisfaction so H0 is rejected. An
overall view of customer satisfaction with the sub dimensions of product characteristics. Variety of goods got highest score and
percentage (25.91%), followed by quality of product (25.56%). Good for money got the third position with (24.89%) and unique &
trendy goods stands on the fourth position with (23.64%). It plausible to assume the product strategy employed at organized retail
outlets in term of quality of products, good value for money, unique & trendy goods and variety of goods satisfy most of the
respondents.
Chi square test indicates that price factors are insignificantly related with the customer satisfaction as the chi square so H01 is rejected.
Affordable price got the higher rank with 35.13% than fixed price and reasonable price. Fixed price got second rank with 32.58%. It can
possibly be assumed that customers find price affordable when compared to quality and quantity of products and are also reasonable.
Chi square test indicates that physical aspects are insignificantly related with the customer satisfaction so H02 is rejected, Overall view
of customer’s satisfaction with these aspects. Parking stand 1st position with the highest score and percentage (25.59%) followed by
convenient location (25.08%). Lighting arrangement and outlet atmosphere score percentage respectively 24.73% and 24.60%.
According to these results it can be concluded that most of the features of physical aspects meet majority of respondent’s expectation
while product information sign meet some of the respondent’s expectation. There is a need to make improvement on this aspect.
Chi square test indicates that promotional schemes are insignificantly related with the customer satisfaction so H03 is rejected. Credit
facility got 1st position with highest score and percentage (26.39%) followed by discounts (25.00%). Free gifts and coupons scored
(25.00%) and (23.22%) respectively. There is need to focus attention on promotional scheme, especially coupons facilities.
Chi square test indicates that
personnel interactions are insignificantly related with the customer satisfaction so H04 is rejected. The helpfulness of the staff got
highest score and percentage 25.92%, followed by good mannered of staff with 25.33%. The components of customer satisfaction with
the sub dimensions of product characteristics that variety of goods got highest score, price factor that affordable price got highest score,
physical aspects that parking space got highest score, promotional scheme that credit facility got highest score, and personnel
interaction that helpfulness of staff got highest score. Hence it is found that Due to salesperson Attentiveness like promotional
schemes; Quality and fixed price both effected by Salesperson attentiveness; Most of the physical Aspects and affordable Price effected
consumer’s satisfaction; Good value for money and unique goods like by Customers due to reasonable price; Credit facility And Variety
of goods given where outlet Atmosphere is good are main components of customers satisfaction.

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