-MDP/MRP -Chi-square test -Discriminant & Factor Analysis

1. PROJECT REPORT - MBA633A
MARKETING RESEARCH
“RETAIL HOUSE”
Submitted to:
Prof. Shankar Prawesh | IME, IIT K
Submitted by:
Ankit Panwar (16125010)
Gughapriyan M (16125017)
Sai Barath Sundar (16125035)
Shivam Gupta (16125039)
Department of Industrial and Management Engineering
INDIAN INSTITUTE OF TECHNOLOGY KANPUR

2. PAGE 1
Contents
1. Problem Definition....................................................................................................2
2. Approach to the Problem...........................................................................................3
3. Research Design.......................................................................................................3
4. Data Analysis............................................................................................................5
5. Results......................................................................................................................6
6. Recommendations ....................................................................................................8
7. Limitations................................................................................................................8
8. Appendix...................................................................................................................9
Questionnaire......................................................................................................9
Statistics From Questionnaire ..........................................................................13

3. PAGE 2
ProblemDefinition
Retail Shop is a hosiery store located in old shopping complex. The store is owned by a family doing
business for the third continuous generation. The shop has been in place for more than 50 years
which time it was just called retail store and is being called the same since then. At present, the store
is being run by a store manager and an attendant hired by the owner.
The products available in retail shop ranges from pillow, pillow covers, bed sheets, blankets curtains
and under garments. Recently they have added jackets, ready-made clothing and ladies wear to their
product portfolio.
Over the years, store is facing stagnant sales with most of it coming during admission season while
the cost of the running the shop has been increasing such as salary and shop rent. They are also
facing competition from new general stores opened in each hall and E shop opened in new shopping
complex which provides similar products at competitive prices and is closer by for customers.
Discussion with Decision Makers/Industry Experts
Over the past 6 to 7 years, the sales have been stagnant peaking only during admission phase and
starting of winters. The shop manager claimed following reasons for stagnant sales:
1. IIT Kanpur authorities allowing Hall Shops which were selling similar products during peak
time.
2. IIT Kanpur authorities also disallowed promotionalhoardingsin IIT Kanpurwhich prevented
shop to advertise.
3. Parking has been moved outside Old shopping complex
We also took opinion from experts from campus community about decrease in sales and we came to
know about interesting facts:
1. Opening of new shopping complex and campus-E shop
2. Poor layout of shop and front showcase lack of brands
3. Lack of motivation in Shop Staff
Management Decision Problem
How to improve stagnant sales and footfall in the Shop?
Management Research Problems
1. Does a high frequency footfall in Old Shopping Complex will lead to high frequency footfall
in “Retail House”?
2. Will advertisement lead to increased footfall in “Retail House”?
3. Will parking inside Old Shopping Complex will lead to increased footfall in Old Shopping
Complex?
4. Does distance of Customer’s Residence from Old Shopping Complex affect his decision to
travel to Old Shopping Complex?
5. Are staff efficient in locating products inside shop?
6. What factors are most important for improving sales?

4. PAGE 3
Approach to the Problem
We followed the following sequence while addressing the problem:
1. Establish Management Decision Problem
2. Find Factors affecting MDP
3. Formulate Management Research Questions for MSP
4. Select Variables for measurement
5. Formulation of Hypothesis
6. Designing of Questionnaire for measurement of variables
7. Hypothesis Testing
8. Inference
ANALYTICAL MODELS & HYPOTHESES TESTED:
Research Question Null Hypotheses Analytical Model
To check for association between
frequency of foot fall in Old Shop C
and Retail House
There is no association between
the foot falls in Old Shop C and
Retail House
Cross Tabulation – Chi Square Test
To check if advertisement leads to
increased footfall
Advertisement is not associated
with increased footfall
Cross Tabulation – Chi Square Test
To check if parking has any role in
increasing footfall
Parking is not associated with
footfall at Old Shop C
Cross Tabulation – Chi Square Test
To check if distance from residence
affects travel preference to Old Shop
C
Distance does not affect the
choice for travel to Old Shop C
Cross Tabulation – Chi Square Test
To check if staff are efficient at
work (Customer turnaround time
should be less)
Time to find product is less than
5 minutes
One Sample t test
To find most important factor to
improve sales
NA Discriminant analysis, Factor
Analysis
ResearchDesign
Type of Research:
The type of research conducted is Causal Research.
Questionnaire Development & Distribution:
Questions were asked based on the variables selected. The distribution channels selected were online
and direct intercept through printed survey forms.
Pretesting:
We conducted a short test of the questionnaire with 5 subjects. From this we determined questions

5. PAGE 4
that were difficult to understand, redundant questions and ascertained the time taken to complete the
survey. The required changes were made to the survey. The average time to fill the survey was less
than 5 minutes.
Sampling:
Our target initially was the entire population staying inside IIT Kanpur. But since distribution was
not possible to the various faculty during the time provided, the final survey was conducted by
distributing among the student community.
Since the survey was sent as an email, the technique can be considered as random sampling. This is
also applicable to the direct intercept conducted using printed surveys.
Variables, Data preparation and Scaling Techniques:
Variable Type Scale/Levels Comments
Residence Nominal 23 Place where subjectisstaying
Travel_Preference Nominal 2 Preference totravel toOldShopC –
Yes/No
Distance Scale 5 DerivedfromResidence.5categories
representingdistancesfromresidence to
OldShopC
Freq_Visit_Shop_C Nominal 4 Frequencyof visit –OldShop C
Aware_Retail_Hse Nominal 2 Awarenessof Retail House
Freq_Visit_Shop Nominal 5 Frequencyof visit –Retail House
Helpfulness Ordinal 7 Likert– Measure of staff helpfulness
Time_Find_Prod Ratio 9 Time to findproduct
Brand_Satisfaction Ordinal 7 Likert– Measure of brand satisfaction
Prod_Variety Ordinal 5 Measure of productvariety
Layoutofitems Ordinal 5 Rank - Factor
Lighting Ordinal 5 Rank – Factor
Cleanliness Ordinal 5 Rank – Factor
NewProductsBrands Ordinal 5 Rank – Factor
Staff Ordinal 5 Rank – Factor
Factor_to_improve Nominal 5 Subjectpreference
Parking_Visit_YN Nominal 2 If parkingis allowedwouldsubjectvisit
or not
Mode_of_Awareness Nominal 5 How subjectbecame aware
Advert_Others Nominal 2 Checkisother shopshave adverts
Post_Advert_Visit Nominal 2 Checkshopvisitafteradverts
Shop_Preference Nominal 4 Shoppreference forclothing

6. PAGE 5
Data Analysis
Test Analysis
Significant/Insigni
ficant
Frequency
for visit to
Shopping
Complex
vs
Frequency
for visit to
Retail
House
Chi-squared:
p-value is less than
0.05
Significant*
Advertisem
ent Vs Post
Advertisem
ent Visit to
Shop who
gave
Advertisem
ent
Chi-squared:
Significant*
p-value is less than 0.05
Parking
inside Old
Shopping
Complex
Vs
Frequency
of Visit to
Shopping
Complex
Not Rejected

7. PAGE 6
Distance of
Residence Vs
Preference of
Travelling to
Old Shopping
Complex
Not Rejected
Customer
turnaround time
should be less
than 5 minutes
Significant*
Discriminant
Analysis
-------
Results
1. On checking association of Frequency for visit to Shopping Complex and Frequency for visit to
Retail House, we find results are statistically significant Hence footfall in “Retail House” is
associated with Footfall in Shopping Complex. It can be inferred that frequent visits to Old
Shop C need not translate to frequent visits to Retail House.
2. On checking association of advertisement leads to increased footfall, we find p-value is less than
0.05 i.e. results are statistically significant and we can reject the null hypothesis.
We find that about 56% of the respondents who see an advert visit the particular shop. Hence
Advertisement is associated with increased footfall in Shops.

8. PAGE 7
3. On checking association of Parking inside Old Shopping Complex Vs Frequency of Visit to
Shopping Complex, we find p-value is more than 0.05 and we cannot reject the null hypothesis.
We can infer that parking inside old shopping complex and footfall are not significantly
associated. Thus, focus of shopkeeper should not be on wasting time on pressing authorities for
policy change regarding parking.
4. On checking association of distance of residence Vs preference of travelling to Old Shopping
Complex, we find p-value is more than 0.05 and hence we cannot reject the null hypothesis. We
can infer that distance of residence with preference of travelling are not significantly associated.
5. On checking null hypothesis, that customer turnaround time should be more than 5 minutes ft,
we find p value is less than 0.05 and hence we reject the null hypothesis
It can be inferred that at 95% CI, the time taken to find a product lies between 3.6 to 4.95
minutes. Well within 5mins. From this we can infer that staff is efficient in helping customer
locate the product. This also is an indicator of motivation level of the shop staff.
6. Discriminant Analysis
Value for function 1 is maximum for cleanliness in Table 1 & maximum for new shopping
complex in Table 2 i.e. people prefer to travel to new shopping complex due to cleanliness.
Similarly, inference from function 2 is that people visit halls shops due to lighting and function 3
tells us that people visit outside campus shops for new brands/products.
Hence from this data we can infer that
 Staff is not at all significant in making a choice.
 Old Shopping Center doesn’t standout on any of the factors considered. This makes old
shop c the last destination for people to go.
 This decreases the footfall of Old shop C as well as the retail shop.
 New Products and Brands is very important.
 People are willing to travel more if they get new product/brands as it is available outside
campus.
7. Factor Analysis
Function 1 explains Lighting Function 2 explains layout of items and Function3 explains Cleanliness
Better.

9. PAGE 8
From the graphs, we infer that Lighting and New products/Brands are not at all related i.e. People
who are concerned about new products and brands don’t care about the lighting of the shop as long
as they have the products and brands they want.
From the plot of F1 and F2, It can be seen that the graph is spread out and not clustered, which
means people’s choices are very varied. But lot of people prefer New Products and Brands and
Layout of items. From the Plot of F1 and F3, we can understand that lot of respondents prefer
cleanliness in the shop. Also, people associate staff and layout of items to be related.
FAEx (2).xls
Recommendations
1. We came to know from hypothesis testing that distance from residence and parking does not affect
the footfall of “Retail House”. Focus of shopkeeper should not be on wasting time on pressing
authorities for policy change regarding parking.
2. People will be attracted to visit Retail House if they would be advertising. They can start advertising
using pamphlets with Newspaper inside IIT Kanpur during period of high sales and can give offer
during period of low sales.
3. The two most important factors are New products/brands and Layout of items. Which can be
derived from the discriminant analysis as well as from the people’s suggestions. The Retail shop has
to improve on these two fronts to attract and retain customers.
4. Almost 81.3% of sample population come to know about the shop by directly visiting the shop. The
other way people come to know about the shop is word of mouth and so the shop should improve
on overall shop experience of customer in order to improve word of mouth.
Limitations
1. Timing Constraint: - The time available for the analysis, design of survey and getting responses
from the population was limited.
2. Due to timing constraint and some other factors, we could get only students data, while the
responses from staff and faculty are still awaited.
3. We have faced population reach issue, due to official restrictions, and that’s the main reason we have
been able to collect limited data. Although we collected data manually but that remains limited only.
4. Budget Constraint: - We have faced budget constraints, due to which we were unable to conduct
Focus Group study.
5. We don’t have any secondary data sources, which entails us to rely completely on primary data
collection.

10. PAGE 9
Appendix
QUESTIONNAIRE
Retail House Survey
-Old Shopping Center
As a part of an academic study, we are looking to collect certain information on "Retail House" -
a shop located at the Old Shopping Centre of IIT-K. The information we are seeking relates to
consumer preferences,aspects of the shop and Shopping Centre as a whole.
The survey would require 5 minutes of your time. We are looking forward to your cooperation in
helping us understand your choices and coming up with a concrete analysis. Kindly start off by
telling us a bit about yourself.
Please tick ☑ the checkbox in front of option selected.
What is your current profession? *
 Student
 Professor
 Non-teaching staff/Working inside IIT-K
 Others_________________________________________________________________
What is your age? (in years) *
 < 18
 18 - 22
 23 - 26
 27 - 30
 > 30
Gender *
 Male  Female
Where do you stay? *
 Outside IIT-K
 Type-I  Type-2  Type-3  Type-4  Type-5  Type-6
 GH1  GH2
 Hall-1  Hall-2  Hall-3  Hall-4  Hall-5  Hall-6  Hall-7  Hall-8
 Hall-9  Hall-10  Hall-11  Hall-12
 Old/New RA
 Old/New SBRA

11. PAGE 10
Howfrequently do you visit Old Shopping Complex? *
 Once a Week
 Once in Two Weeks
 Once a Month
 Rarely
Are you aware of this shop - "The Retail House"? *
 Yes
 No
Howoften do you visit this shop? *
 Once a Week
 Once in Two Weeks
 Once a Month
 Rarely
 Never
Howhelpful are the staffin the shop? *
Howaware are the staff about the products? *
Howlong did it take to find your Product? (on your last visit) *
Did you find the shop attractive? *

12. PAGE 11
Generally: What makes ANYshop attractive? Rank the parameters from highest
importance (Rank 1) to lowest importance (Rank 5): *
Which of following does "The Retail House" need to improve most, to make it more
attractive? *
 Layout of items
 Lighting
 Cleanliness
 New Products/Brands
 Staff
If you can park your vehicle just outside the shop, will you come here more often? *
 Yes
 No
Howdid you come to knowabout this shop? *
 Word Of Mouth
 Pamphlets

13. PAGE 12
 Posters
 Direct Visit
 Others__________________________________________________________________
Have you come across advertisements from OTHER SHOPS inside the campus? *
 Yes
 No
If Yes, Did you visit that particular shop after seeing the advertisement? *
 Yes
 No
Are you satisfied with the Brands sold in the shop? *
Howmany varieties ofthe product you wanted to purchase were available? Rate on a scale
of 1 to 5 *
Where would you most prefer to buy items like Beddings, Undergarments,Readymade and
winter clothes? *
 Outside Campus
 Old Shopping Complex
 New Shopping Complex - Campus eShop
 Shops in Hall11/10/7 etc.
Do you prefer to travel from your residence to the Old Shopping Center? *
 Yes
 No
 Maybe

14. PAGE 13
STATISTICS FROM QUESTIONNAIRE