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INTRODUCTION

CUSTOMER SATISFACTION

Todays companies are facing their toughest competition ever. These companies can
outdo their competition if they can move from product and sales philosophy to a marketing
philosophy. We spell out in detail how companies can go about winning customers and
outperforming competitors. The answer lies in doing a better job of meeting and satisfying
customers needs. Only customer-centered companies are adept at building customers, not just
building product. They are skilled in market engineering, not just product engineering.

Too many companies think that it is the marketing/sales departments job to procure
customers. If that department cannot, the company draws the conclusion that its marketing
people arent very good . but in fact, marketing is only one factor in attracting and keeping
customers. The best marketing department in the world cannot spell products that are poorly
made or fail to meet anyones need. The marketing department can be effective only in
companies whose various departments and employees have designed and implemented a
competitively superior customer value-delivery system

Although the customer oriented firms seek to create high customer satisfaction, its main
goal is to maximize customer satisfaction, first the company can increase customer satisfaction
by l.owering its prices, but results may be lower profits second the company might be able to
increase prices. Third the company has many stake-holders including employees, dealers,
suppliers and stock holders spending more to increase customer satisfaction might divert funds
from increasing the satisfaction of other partner. Estimate the company must operate on the
philosophy that it is trying to deliver a high level of satisfaction to the other stake-holder within
the constrains of its resources. From the past studies of last three decades we observed that the
companys first task is to create and satisfy customers. But todays customers face a vast array of
product and brand choice prices and suppliers.

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CUSTOMER VALUE

Customer delivered value is the difference between the total customer value and total
consumer cost. Consumer value is the bundle of benefits customers expect from a given product
or service. Total consumer cost it the bundle of costs consumer expect to incur in evaluating,
obtaining and using the product.

PLACE UTILITY:

Refers to the idea that a product made available to the customer at a preferred location is
worth more than one at the place of manufacture. It is much more convenient for the customer to
be able to buy food items in a supermarket in his or her neighborhood than it is to pick up these
from the farmer.

TIME UTILITY:

Involves the idea of having the product made available when needed by the customer.
The customer may buy a turkey a few days before Thanksgiving without having to plan to have it
available. Intermediaries take care of the logistics to have the turkeyswhich are easily
perishable and bulky to store in a freezeravailable when customers demand them.

DELIVERING CUSTOMER VALUE AND SATISFACTION:

The value chain is a tool for identifying ways to create more customer value. every firm is
a collection of activities that are performed to design, produce, market, deliver and support its
product. The value chain identifies nine strategically relevant activities that create value and cost
in a specific business. These nine value-creating activities consist of five primary activities and
four support active

Marketing managers rely on internal reports on orders, sales, prices, cost, inventory levels,
receivables, payables, and so on. By analyzing this information, they can spot important
opportunities and problems.

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NEED FOR THE STUDY

Customer satisfaction is a feeling of pleasure or disappointment resulting from comparing a


products perceived performance or outcome in relation to his or her expectations. So,
satisfaction is a function of perceived performance and expectations. If the performance falls
short of expectation, the customer is dissatisfied. If the performance matches the expectation, the
customer is satisfied. If the performance exceeds expectation, the customer is highly satisfied or
delighted.

1. A study on customer satisfaction helps the organization to understand each and every
need of the customer.
2. The Study helps the company to understand the efficiency of the service provided to the
customers, so that it can create the basis for further improvement.
3. The study helps to assess the real opinion and mindset of customers and aids to meet out
their expectation in future. This in turn will increase the volume of sales.

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OBJECTIVES OF THE STUDY

The main objective of the study is to find out the level of satisfaction among the customers.

1. To identify customer interest in buying foot wares.

2. To know price impact on product purchase.

3. To collect and evaluate ideas/views and expectations of the customers for the

improvement in suppliers performance.

4. To make company's suppliers aware about the dissatisfaction part of their customers.

5. To find out the most prominent area of dissatisfaction.

6. To identify the customer service level.

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SCOPE OF THE STUDY

The scope of the study is to find out the customer satisfaction with
reference to footwares.The study covers the different aspects of customer satisfaction.

This has been conducted in Vijayawada Zone. Data have been collected from customers by a
survey through a questionnaire. The researcher took 45 days to study the entire customers
perception.

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RESEARCH METHODOLOGY

The quality and reliability of research study is dependent on the information collected
in a scientific and methodological manner. Scientific planning of designing of research method is
a blue print for any research study. Therefore, proper time and attention should be given in
designing the plan of research. While proper definition of problem tells the researcher where he
has to go, proper design tells him how he should go. Selection of methodology for a particular
project is made easy by sorting out a number of alternative approaches, each of them having its
own advantage and disadvantages. Efficient design is that which ensure that the relevant data are
collected accurately.

SOURCES OF DATA

Data has been collected by the researcher by Primary sources such as questionnaire
and personnel interview.

Primary data

Secondary data

Primary data

Primary data are the data that are collected to help, solve a problem or take advantage of
an opportunity on which a decision is pending. An important source of primary data is
survey research. The various types of surveys (personal, mail, computer and telephone).

Mainly Questionnaire Survey method has been used to collect the data.

SURVEY METHOD

A field of applied statistics, survey methodology studies the sampling of individual units from a
population and the associated survey data collection techniques, such as questionnaire

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construction and methods for improving the number and accuracy of responses to surveys.
Statistical surveys are undertaken with a view towards making statistical inferences about the
population being studied, and this depends strongly on the survey questions used.

Secondary data

Secondary data is any information that was collected by someone other than the
person, company, or party analyzing or using the data. This contrasts with primary data, which is
data that is collected by the person conducting the investigation or research.

The collection of secondary data helps to save time as there is a lot of quantitative data
that might fall into a dense variety of categories and can therefore be used by many different
companies in various industries. Because of these collection methods the information, which
would be the same or consistent among all of these parties, can be more efficiently used to
analyze and reach conclusions.

Data has been collected from the secondary sources like company records and website
and through magazines of the company.

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RESEARCH
METHODOLOGY

PRIMARY DATA SECONDARY DATA

Questionnaire Company Records, Website,


Reference Books
Personal interview
Observation

Sample size

The sample size used for the study is 100 employees out of which 80 belongs to
Marketing and 20 from HR department.

SAMPLE DESIGN:-

The Research design used in this study was descriptive research design. It includes
surveys and fact-finding enquiries of different kinds. The main characteristic of this method is
that the researcher has no control over the variables; he can report only what has happened or
what is happening.

STATISTICAL TOOLS APPLIED


In this study I used Percentage Analysis as the Statistical Tool.

PERCENTAGE ANALYSIS
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Percentage refers to a kind of ratio. Percentages are used in making
comparison between two or more series of data.
They can also be used to compare the relative terms.
Percentage of respondents = No. of respondents *100
Total respondents

GRAPHICAL REPRESENTATION
The attributes are assessed on a graphical scale in the form of Column charts.
For Example: A trait like customer service may be judged on the range of Excellent ,Good,
Average.

LIMITATIONS OF THE STUDY

All the research projects are hindered in their smooth flow by some unforeseen problems.
The problems arise in the form of constraints by budget, time and scope of the study. The current
project was also faced by certain problem. Some of the problems faced in the course of the
research are as follows:

1. The study was conducted only in one district. This may not give a generalized
conclusion.
2. The respondents were less interested in answering the questionnaire.
3. The analysis is based on the data provided by the respondents. The views of those who
did not participate in the survey is not included.
4. There may be error due to bias of the employees.

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5. The conclusions are based on the opinions expressed by the customers. Hence they
cannot be assured to unbiased or true representation of reality

INDUSTRY PROFILE

INTRODUCTION:

India is the second largest footwear producer in the world, with footwear production accounting
for approximately 9 per cent of the global annual production 22 billion pairs as compared to
China, which produces over 60 per cent of the global production.

India annually produces 2.1 billion pairs of which 90 per cent are consumed internally while
remaining are exported primarily to European nations which include United Kingdom, Germany,
USA, Italy and France, as per market analysts.

Footwear exports from India have grown at a CAGR of 20 per cent in Indian Rupee terms during
the last five year backed by growing demand from European nations and increasing focus of
main importing countries to shift sourcing from China to other low cost producing countries.

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India is the third largest footwear consuming country in the world after China and USA, but with
very little separating the three, India is very soon expected to be the second largest consumer as
well.

In absolute terms, footwear exports from India have risen from Rs. 71.5 billion in FY10 to Rs.
180.0 billion in FY15.

The growth in Indian fashion and lifestyle market has given an impetus to the footwear industry
as well. From a basic need-based industry, it has become an evolving fashion and style category.

MARKET SIZE, GROWTH & SEGMENTATION

As per the India Retail Report, Indias total retail market is worth Rs 33,592 crore, growing at
18 per cent and is expected to cross Rs 54,000 crores by 2017. Modern retail is estimated at
42 per cent of this total market and is expected to grow by 21-23 per cent Y-o-Y. Retail
expansion grew at an average of 16-18 per cent in terms of number of outlets and retail space
with same outlet growth being around 25 per cent.

The footwear market in India, like its international counterpart, has always been broadly
classified into three segments, Mens, Womens and Kids. Mens market is growing at a CAGR
of 10 per cent. At present, mens market contributes around 60 per cent of sales in the footwear
segment as against womens share of 30 per cent. The womens segment, however, is growing at
a much faster CAGR of 20 per cent.

Based on the usage, the market can be divided into two sub categories:

Regular (consisting of daily and sports footwear, material can be leather/non-leather)


Occasional (consisting of premium and luxury, material can be leather/non-leather)
From price point, the footwear industry in India can be divided into five parts:

Mass (Rs 150-700)

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Mid/Economy (Rs 700-1000)
Active Sports (Rs 1000-3000)
Premium (Rs 3000-5000)
Luxury (Above Rs 10,000) segment
The footwear market of the country is shared between organised and unorganised segment. The
organised segment caters to about 1/3rd of the market while the remaining market is fetched by
unorganised players.

The unorganised segment gains prominence in the Indian context due to its price-competitive
products, which are more suitable and attractive to the price conscious Indian consumer. But with
increased household income, shifting consumer behaviour from saving to spending, increasing
brand consciousness amongst Indian consumers, influx of large number of global brands and
penetration in tier II and III cities by footwear companies, the organised retail in footwear
market is rapidly evolving and expected to grow at a higher rate in the future.

The rural market of India is still largely untapped for footwear manufacturers. Companies are re-
positioning themselves and launching specific products and price ranges to expand their presence
and increase their consumer base in rural areas.

EVOLUTION OF THE INDIAN FOOTWEAR MARKET

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President-South Asia, Bata, Rajeev Gopalakrishnan, analyses the evolution of footwear
industry in his own way. He says, As consumers exposure to multi-channels on TV, movies,
content increased over years, their expectation from footwear have evolved. Buying shoes for
special occasions started becoming a norm. Advent of digital technologies and penetration of
smartphones brings instant awareness for Indian consumers about the latest global trends and
makes them aspire for the latest. Footwear is not just for utility anymore; they are more of a
fashion statement. This has increased the per capita consumption from 1.6 to 2.4 in last 5 years.
The market is also likely to gain from the proliferation of the retail culture, which is expected to
boost it at a CAGR of 11 per cent between 2015 and 2023. Since the global footwear market is
highly fragmented, the focus now lies in diversifying the product portfolio through research and
development to meet the changing customer needs.

The industry is at a very interesting crossroad. The demography and changing buying behaviour
are triggering enhanced demand from the existing pie. Rising disposable incomes and new
entrants into workforce, especially women are pushing the domestic demand on the upside. On
the other hand, the pain points of the industry tax component and incentives on investor
allowance are being worked upon. The organised sector will tend to be big beneficiary of these
trends, says COO, INC. 5 Shoes Pvt. Ltd., Rajesh Kadam.

He further says, India is witnessing a change in terms of its basic aspiration that has seen the
buyers preference move to more of branded stuff. More international players will enter the
market and they will offer a wide variety to the consumer. All these are way different when we
started out when it was a basic need that this industry fulfilled.

90 per cent of the footwear produce of India is still consumed by the domestic market and the
rest is exported.

Indian footwear industry is exploring ways to increase exports and the growth in export of
footwear will depend on quality and cost competitiveness, says MD Sreeleathers, Satyabrata
Dey.

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According to him, India is attracting various established fashion brands of the world as well as
retailers who are re-orienting their focus on the domestic footwear market. This has led to a
significant increase in the number of retail outlets nationwide.

KEY TRENDS SHAPING THE INDIAN FOOTWEAR MARKET

Casualization and the Growth of Sports Shoes: According to Rajeev Gopalakrishnan,


The surging demand for designer yet comfortable shoes among women and sportswear or
athletic shoes among men, have been bolstering opportunities for footwear sales.
It is true that, the choice of footwear, both for men and women in India is always dominated by
the fashion of the season. However recently, comfort has been the determining factor for the
consumers in buying footwear. Casualization has kicked in as a big trend and with that sales of
sneakers, converse also have picked up, as these are preferred for everyday wear. In fact, heels
over three inches, most favourite in womens segment, have recorded a decline of 17 per
cent since last September.

MD & CEO Metro Shoes, Farah Malik, says, The last year saw an upsurge in the casual
category for men and in mens wear saw an increased acceptance of brighter colours and quirkier
patterns. We have also seen a spurt in kids wear.

Increased Trust in Branded Footwear: Though the market share of branded and non-
branded footwear in the country is almost the same till date, but brand consciousness of the
Indians is increasing substantially.
As Rajesh Kadam of INC. 5 says: A certain segment of Indian consumers is definitely become
brand conscious, and the rest of the market does have an aspiration to get there.

Farah Malik adds, A fast growing economy and a rising number of affluent consumers have
pushed India into the league of most brand conscious countries globally. However most
consumers prefer a price point ranging between Rs 999 4999 with regard to both national and
international brands.

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Growing Opportunities in the Womens Segment: Womens footwear constitutes only
30 per cent market share currently. But the growth rate of this segment is double than the
mens segment. Where the mens footwear market has registered 10 per cent CAGR growth
rate in the last fiscal, it is 20 per cent for womens segment.
Omni-channel Retailing: Retailers have started venturing into Omni-channel retailing and
trying in-store marketing solutions such as beacons to enrich the shopping experience and
trying to find out ways to bridge the gap between offline and digital channels. In addition to
engage users on digital platform, and even influence their merchandising decisions, many
retailers are using the platform not just to showcase products, but to actually sell them. The
same goes for mobile. Companies wont just use the small screen to get in front of
customers (i.e. through geo-fencing and mobile-enabled sites). In 2016, retailers have
incorporated mobile into other parts of the customer journey, including order fulfilment,
payments, and loyalty.

LEADING FOOTWEAR BRANDS IN INDIA

The First Wave: Indian Powerhouses

The great Indian footwear brands predate their glamorised apparel cousins by a substantial time
margin. Indian powerhouses in general started operating in the country majorly since
independence itself and the past decades have seen more and more brands being launched into
the industry. A case in point is our most loved Bata that most Indians will disbelieve its Italian
origins. It was one of the earliest entrants and remains the market leader of Indian footwear.

Brand Year of Segment Product Portfolio Retailing Format


Establishm Presence
ent
Bata 1931 Mass/Economy/ Mens, Womens, 1,250 stores across 500
Active Kids footwear with cities, wholesale
sports/Premium international brands division, dealer-
such as Hush distribution network,
Puppies, Marie own website and other e-
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Claire, Scholls etc. commerce portals
Metro 1947 Mass/Economy/ Mens, Womens, 310+ EBOs in 90 cities
Active Kids footwear with and online retailing
sports/Premium international brands through brand website
like Clarks, Steve and other e-commerce
Madden, Crocsetc. portals
Liberty 1954 Mass/Economy/ Mens, Womens, 400 EBOs & 6000 multi-
Active Kids footwear brand outlets
sports/Premium
INC. 5 1954 Economy/Premiu Womens footwear 225 shop in shops and 32
m stand-alone stores across
the country
Ajanta 1956 Mass/Economy Rubber, PU, PVC, 20 showrooms in Eastern
EVA, canvas and part of the country,
leather footwear for MBOs and distributors
men, women and
kids
Khadims 1965 Mass/Economy/ Mens, Womens & 600 retail outlets in 21
(wholesale Active/ sports Kids footwear states
&
distribution
)
1993
(Retail
journey)

Action 1975 Mass/Economy/ Mens, Womens, Franchised EBOs, brand


Active/ sports Kids footwear website, leading e-
commerce portals
Paragon 1975 Mass/Economy Rubber, PU, PVC, Distributed through 80
EVA and TPR depots and 450+
footwear for men, distributers across India
women and kids
Relaxo 1976 Mass/Economy/ Mens, Womens, EBOs, franchised outlets,

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Active/Sports Kids footwear own website and e-
commerce portals
Sreeleather 1987 (in Mass/Economy/ Mens, Womens, 6 EBOs and dealer
s Kolkata) Active Kids footwear network
Catwalk 1990 Economy/Premiu Mens & Womens 150 stores in 31 cities,
m footwear partnered with retail
chains like Pantaloons,
Globus, Central,
Hypercity, Mega Mart,
Lifestyle, Reliance
Footprint, Shoppers Stop
etc.
Mochi 2000 Economy/Premiu Mens, Womens, Footprints in more than
m Kids footwear 35 cities through 70
retail outlets
Source: official website of the brands

The Second Wave: International Sportswear Giants

A significant shift post liberalisation was that lifestyles expanded to foster great value for the
sports/active segment and for casualization as a whole. The technological prowess of global
sportswear giants enabled them to functionally and fashionably appeal to a young India.

Today, these international giants dominate the sports footwear category. The market is held
by Adidas, Nike, Puma, Lotto, Reebok, and we expect the newer entrants ASICS, Sketchers,
Crocs, Salomon etc to begin posing challenges to the Big 5 soon. A highly notable home grown
success story however is Woodland that is a top of mind name in the adventure and outdoor
segment in India.

Brand Time of Retailing Format In Key Indian Partners


Launch India
Reebok 1995 Franchise outlets, MBOs Basic Clothing, CS Retail, Comfy
Shoemakers, Emdee, Mayur

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Associates Retail (Sri Devi), Uttam
Trading
Nike 1995 Franchise outlets, MBOs Mystore, RJ, SSIPL Group, Saffron
Group etc
Adidas 1996 Franchise outlets, MBOs Adi Sports, Comfy Shoemakers,
Goodwill Enterprises, Mayank,
Swaranbhadra etc
Salomon 2002 MBO A&S Creations, Hindustan Army
Store, Planet Sports and Central
Stores
Puma 2006 Franchise outlets, MBOs Bhawar, Ethix, Kapsons,
Samarth, Shreyas
Lotto 2007 Stand alone stores and Sports Lifestyle Pvt. Ltd.
200+ MBOs
Crocs 2007 Through Metro Shoesand Metro Shoes
EBOs
Paul & Shark 2009 EBO, Palladium, 50:50 JV with Reliance Retail
Emporio, Mumbai
Airport, Hyderabad Taj
Krishna Hotel
ASICS 2010 Through MBO only till Reliance Retail/Footprint
beginning of 2015, started
opening franchised stores
since then
Sketchers 2012 Mono Brand Retail Future Retail
through JV
Airwalk 2012 Through MBOs only Reliance Footprint

Source: IMAGES F&R Research, indiaretailin.com, official website of the brands

EMERGENCE OF AN INFANT HIGH END & LUXURY FOOTWEAR MARKET

Though compared to the other footwear segments in India, the premium and luxury segment is
very small and in terms of sales it amounts only approx Rs 450 crore as per ASSOCHAM data,

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but this has not prevented many international players from making an India entry. In fact their
entry has hugely helped in raising the aspiration level of the consumers really high.

Many major international brands in premium and luxury segments like Aldo, Charles & Keith,
Pavers England, Hush Puppies, Clarks, Steve Madden, Tod, Bally, Ralph Lauren, Ermenegildo
Zegna, Burberry, Chanel, Gucci, Salvatore Ferragamo, Bottega Veneta, Armani, Versace, Hugo
Boss, Dolce and Gabbana, McQueen and YSL (available through TSGs Kitsch), Kenneth Cole
all are available in India either through exclusive stores or through MBOs.

Top luxury footwear brands in the world, Louis Vuitton and Jimmy Choo have opened their
exclusive stores in India. Very recently French luxury brand Longchamp has also forayed in
India and opened its first store at DLF Emporio. The brand even has a plan to open 3-4 more
stores in the country in coming few years.

Major MBOs in Footwear Industry

Curation of footwear for consumers is still greatly valued in India. Multi brand retail in footwear
not just remains popular but is growing in strength day by day. Apart from own in-house brands,
almost all the popular brands are visible at leading MBOs as well as in the major departmental
stores today.

Reliance Footprint is perhaps the biggest player in this category. It has 225 stores across 24 states
and has brands like Buckaroo, Franco Leone, Ganuchi, Hush Puppies, ID, Lee Cooper, Mancini,
Pavers England, Moss Dunes, Provogue, Red Tape, Samsonite, Woodland, Catwalk, Custini, Hi
Attitude, Inc 5, Luciano, Jove, Orange, Bonjour, Enroute, Piccadilly, Rocia, Tosca, towlips,
Viviana, Hi Attitude, Levis, Lilliput, Mardi Gras, Spiderman, Adidas, Admiral, Fila, Lotto,
Monza, Nike, Puma, Reebok, Scholl, Catwalk, Tresmode, Cocoon, Franco Leone, Gas, Louis
Philippe, Roush, Alberto Torresi, Valentino, Sketchers, Airwalk, Barbie etc in its kitty.
Pantaloons, Shoppers Stop and Lifestyle are some other important MBOs dealing with footwear.

AP Footwear Market Trends

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Branded outlets account for average of 55 percent of the footwear market while multi-
brand retail outlets account for about average 30 percent.
Disposable income among Andhra Pradesh urban middle class which contributes about
average of 45 percent of overall footwear market.
Per capita consumption of shoes in Andhra Pradesh (number of footwear worn by an
individual) is currently about average of 2.65 shoes per year.
Online shoe shopping is a significant segment that is fast emerging in terms of footwear
sale.
Driven by larger penetration into Tier II, III cities and growing rural market various
premium footwear brands are foraying into A.Ps non-metro market which holds
enormous growth potential and account for about average of 55 percent of the overall
footwear industry.
A.P foot ware market size is Rs25 crores, is expected to growth rate of CAGR15% P.A
Gents represents 55% market share, approximately of 14 crores.
Ladies represent 30% of the market, 7.5Crores
Children (Boys, Girls kiddies) account to 15% of A.P Market, 4 crores approximately,
A.P footwear market is expected to grow at a CARG of 15% from 25 crores to 43.7
crores in five years.
Children and gents footwear segments are expected to play a key contribution to the
footwear market.

COMPETITIVE LANDSCAPE

Demand is driven by fashion and demographics. The profitability of individual


companies depends on their ability to design and market attractive shoe models. Big companies
have economies of scale in distribution and marketing. Small companies can compete
successfully through superior design or marketing.

PRODUCTS, OPERATIONS & TECHNOLOGY

For US manufacturers, men's footwear accounts for about 50 percent of


sales, women's for about 20 percent, and athletic and other footwear...

The footwear manufacturing industry comprises establishments primarily engaged in


manufacturing footwear of any material and falls under North American Industry Classification
System (NAICS) Code 3162: Footwear Manufacturing. This classification includes athletic

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shoes, boots, work boots and shoes, golf shoes, infant's and children's footwear, orthopaedic
shoes, slippers and skate boots.

Definitions:

CAAGR:

Compound Average Annual Growth Rate, 2003 to 2007, except for Gross
Domestic Product (GDP), Manufacturing Intensity Ratio and Labour Productivity which are
from 2003 to 2006.
Apparent Domestic Market (ADM) = Shipments plus Imports minus Exports
Manufacturing Intensity Ratio (MIR) = GDP divided by Shipments
Import Penetration = Imports divided by ADM

Export Orientation = Exports divided by Shipments

Domestic Market Share = Shipments minus Exports divided by ADM


Labour Productivity = GDP divided by Employment (in thousands of $ CAD)

Apparent Domestic Market 1,748.8 1,766.1 1,867.4 2,013.7 1,993.6 -1.0% 3.3%
Shipments 349.5 321.1 293.8 348.2 267.6 -23.2% -6.5%
Gross Domestic Product 177.5 143.1 141.4 138.9 n.a. -1.7% -7.8%
Manufacturing Intensity Ratio 50.8% 44.6% 48.1% 39.9% n.a. -17.1% -7.7%
Total Imports 1,498.9 1,565.4 1,672.4 1,754.7 1,817.3 3.6% 4.9%
Domestic Exports 99.3 120.4 98.8 89.2 91.2 2.3% -2.1
Trade Balance -1,399.3 -1,444.9 -1,573.6 -1,665.6 -1,726.1 3.6% 5.4%
Import Penetration 85.7% 88.6% 89.6% 87.1% 91.2% 4.6% 1.6%
Export Orientation 28.4% 37.5% 33.6% 25.6% 34.1% 33.1% 4.7%
Domestic Market Share 14.3% 11.4% 10.4% 12.9% 8.8% -31.2% -11.3%
Labour Productivity 47.0 41.0 48.0 52.0 n.a. 9.6% 3.9%
Employment 3.8 3.5 3.0 2.7 2.3 -14.9% -12.2%

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ECONOMIC OVERVIEW

Despite a year-over-year average decrease in shipments from 2004 to 2008, the Canadian
footwear apparent domestic market maintained an annual growth rate of 3.3 percent, following
several years of increases in foreign imports totaling $1.8 billion in 2008. Sales in the Canadian
footwear industry experienced a decline in 2008 of 23.3 percent ($267.5 million), compared to
an increase of 18.1 percent in 2007. In spite of the decline in sales, exports increased in 2008, by
2.3 percent for a total of $91.2 million.

In 2008, imported goods increased to a record $1.8 billion, primarily from China
(69.1 percent of imports), Vietnam (7.7 percent) and Italy (6.2 percent). Imported products
consisted primarily of leather shoes followed by footwear made of rubber or plastic. Imports
grew in response to an increase in domestic consumption since 2004 (from $1.7 billion to
slightly below $2.0 billion, growth of 3.3 percent annually).

As consumption is largely based on leather shoes and as this good is produced at such
low volumes in Canada, this market is dependent on imports to satisfy consumer demands.
Imports will likely continue to rise in the future as Canadian demand for footwear grows. By
2013, the domestic market is forecast to be 192.1 million pairs, an increase of 12.1 percent over
2008.

Footwear production is concentrated in Quebec which accounted for 60.3 percent of Canadian
shipments in 2008, followed by Ontario with a 24.8 percent share of national shipments. British
Columbia with 5.1 percent, Saskatchewan and Alberta, produced 0.1 percent and 1.0 percent of
Canadian footwear shipments respectively. Canadian footwear manufacturers are focussed on the
production of waterproof and cold weather boots, work and safety boots, and western and
cowboy boots.

FOOTWEAR INDUSTRY IN INDIA IN GLOBAL CONTEXT

The leather industry is one of the oldest traditional industries. It has several
components like tanning, footwear & leather products including garments. Modern leather
industry began with British governments direct encouragements. First modern tanning was

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established in 1857 (Kumar, 1997). The first modern footwear industry was started in 1887.
However, the footwear industry was largely based on traditional artisan mode. In the industrial
policy of 1967, the leather industry including footwear was reserved for small scale sector. In
late 1970s and early 1980s, 100 per cent export-oriented footwear industries in larger scale were
promoted and that allowed larger scale industries to get established afresh. Only in the month of
June in 2001, the leather industries were de-reserved. In the following two tables we present the
distribution of employment and value added of leather footwear industry across major industrial
states.

SWOT Analysis of Footwear Industry:

STRENGTHS: -
Existence of more than sufficient productive capacity in tanning.
Easy availability of low cost of labor.

Exposure to export markets.

Managements with business background become quality and environment conscious.

Presence of qualified leather technologists in the field.

Comfortable availability of raw materials and other inputs.

Massive institutional support for technical services, designing, manpower development


and marketing.

Tax incentives on machinery by Government.

Well-established linkages with buyers in EU and USA.

WEAKNESSES: -

Low level of modernization and up gradation of technology, and the integration of


developed technology is very slow.

23
Low level of labor productivity due to inadequate formal training / unskilled labor.

Horizontal growth of tanneries.

Less number of organized product manufacturers.

Lack of modern finishing facilities for leather.

Difficulties in accessing to testing, designing and technical services.

Environmental problems.

Non availability of quality footwear components

Lack of fresh investment in the sector.

Uneconomical size of manufacturing units.

Competition among units vying for export orders leading to undercutting.

Little brand image.

Poor labor productivity. Lack of awareness about consistent in


plant training and retraining- Inconsistent quality high rejection rate

Low machine and material productivity.


Lack of quality job work units

Delayed deliveries

Weak support infra- structure for exports

OPPORTUNITIES: -

Abundant scope to supply finished leather to multinationals setting up shop in India.


Growing fashion consciousness globally.

Use of information technology and decision support software to help eliminate the length
of the production cycle for different products

24
Product diversification - There is lot of scope for diversification into other products,
namely, leather garments, goods etc.

Growing international and domestic markets.

Exposure to newer markets through Fairs/ BSMs

Retain customers through quality supplies and timely deliveries

Aim to present the customer with new designs, infrastructure, country & company
profiles.

De-reservation of the footwear sector.

THREATS: -

Entry of multinationals in domestic market.


Stiff competition from other countries.(The performance of global competitors in leather
and leather products indicates that there are at least 5 countries viz, China, Indonesia,
Thailand, Vietnam and Brazil, which are more competitive than India.)

Non- tariff barriers - Developing countries are resorting to more and more non tariff
barriers indirectly.

Improving quality to adapt the stricter international standards.

Fast changing fashion trends are difficult to adapt for the Indian leather industries.

Limited scope for mobilizing funds through private placements and public issues, as
many businesses are family-owned.

COMPANY PROFILE

We M/S. PROFIT SHOE CO.(PVT) LTD is a retail footwear trading company,


spread in all big cities of ANDHRA PRADESH and in some parts of KARNATAKA . we are
having 80 branches and we deal with marketing of footwear and its allied products.

25
Profit Shoe Company was founded in the year 1991 in Vijayawada, Andhra Pradesh,
india and later converted as private limited company. The company originated with mere five
branches and now has sustains an outstanding marketing division and looks forward to acquire
the distribution rights for globally recognized products.

Over the period of "A decade of dedicated services" the confidence grown to the level
of securing an important place in the map of footwear marketing/manufacturing entrepreneurs of
AndhraPradesh. The branded, Non Branded, Volume Sellers, value added products marketing
strategies for rural, urban, semi urban besides institutional & industrial Supplies. To create an
undisputed activities in the field of marketing to redefine and give a true effect to the meaning of
PARTNERS IN OUR PROGRESS for the valued customers together with the entire team under
the valuable guidelines of the force behind the 'PROFIT' the

Managing Director Mr. koteshwara Rao. Profit shoe company pvt ltd is one of the best
footwear retailer .This company is engaged in the business of manufacturing of school items and
trading of foot ware and accessories through their retail and whole sale network throughout
Andhra Pradesh and karnataka.they are having their production facilities at Vijayawada in
Andhra Pradesh. The company operates in two segments, namely foot ware & accessories. Their
Footwear & Accessories segment is engaged in the business of manufacturing and trading of
footwear and accessories items through their retail and wholesale network. Their products
include leather footwear, rubber/canvas footwear and plastic footwear Profit Shoe Company was
founded in the Year 1991 in Vijayawada, Andhra Pradesh, India and was converted as private
limited company in the year 1995.

WELCOME TO PROFIT

Profit shoe company pvt ltd is one of the best footware retailer .This company is engaged in the
bussiness of manufacturing of school items and trading of foot ware and accessories through
their retail and whole sale network through out andhra pradesh and karnataka.they are having

26
their production facilities at vijayawada in andhra pradesh. The company operates in two
segments , namely foot ware & accessories.Their Footwear & Accessories segment is engaged in
the business of manufacturing and trading of footwear and accessories items through their retail
and wholesale network.Their products include leather footwear, rubber/canvas footwear and
plastic footwear Profit Shoe Company was founded in the Year 1991 in Vijayawada, Andhra
Pradesh, India and was converted as private limited company in the year 1995. The Company
originated with mere five branches and now has more than 80 branches all over the AP and
Karnataka. It possesses and sustains an outstanding marketing division and looks forward to
acquire the distribution rights for globally recognized products. Over the period of "A decade of
dedicated services" the confidence grown to the level of securing an important place in the map
of footwear marketing/manufacturing entrepreneurs of Andhra Pradesh. The branded, Non
Branded, Volume Sellers, value added products marketing strategies for rural, urban, semi urban
besides institutional & industrial Supplies. To create an undisputed activities in the field of
marketing to redefine and give a true effect to the meaning of PARTNERS IN OUR PROGRESS
for the valued customers together with the entire team under the valuable guidelines of the force
behind the `PROFIT` the Managing Director Mr. Koteshwara Rao. Company actively
participated in social welfare works and activites.company got many complementries from
different organisation and governmant also.

We offer a wide range of assorted footwear of various brands both national and
international like Bata, Nike, Wood land, Action, Liberty Reebok, Paragon, Lancer Tulsi etc and
other local Brands like Toppers, Clickers, Lites, Nice lady, Medi plus, Butterfly and so on. We
are distributors of Lancer, Action Milano shoes, and Liberty shoes.

The company has also built its remarkable image in the field of product distribution
and functions like an agency for all the dealers who look forward to distribute their products with
the help of agents. In the year 2011-12 our achievement is 48 crores this year we have planned a
turnover of 65 crores.

We are providing direct employment to more than 500 employees in our show rooms and
indirect employment to many workers and the employees working our suppliers.

27
Over the period of A decade if dedicate services the confidence grown to the level of
securing an important place in the map of foot wear marketing/manufacturing entrepreneurs of
Andhra Pradesh.

We are having more than 200 suppliers from local and non local i.e., Delhi, Calcutta,
Kanpur, Agra and other parts of our country. We are having more than 200 customers throughout
the state in addition to our own outlets.

Our company creates awareness in the public about it by doing service activities like Blood
grouping, Blood donation, Medicine distribution, promoting child rights and education and
eradication of child labour etc.

SERVICES:

Profit Shoe Company offers a wide selection of assorted footwear of various brand names.
The company has also built its remarkable image in the field of product distribution and
functions like an agency for all the dealers who look forward to distribute their products with the
help of agents. Its brilliant approach with a wide network and predominant marketing amenities
has proved to be the foremost benefits for the company, its customers and alliances.

Our approach towards business is simple and straight forward.

All the customers or stakeholders willing to execute their business with the help of
the companys network, contact the corporate head office located at Vijayawada. The distribution
cell at the head office then sends the products to the various branch located all over the state,
from where the products are put up for sale.

SOCIAL/CULTURAL ACTIVITIES:
Contributions towards our fellow men

28
Active association and involvement in the village development works such as buildings,
roads and other infrastructure facilities.
Participation in the protection of child rights, rehabilitation of street children movements
and in improvement of the facilities in the children ward of the Govt .Hospital.

Major contributions towards the relief of reconstruction work for the natural calamities through
the government and non-government organizations.

5th anniverasry celebrations

A contribution of Rs.50, 0000 each was made to sundaraiah vijnana Kendram and
Chandra Rajeswara Rao foundation for social progress at Hyderabad on the occasion of the 5th
anniversary.

7th anniverary celebrations

On the occasion of the 7th anniversary in 1998 the Company has conceived and implemented a
novel scheme of felicitating 7 eminent men and women in their respective fields of endeavor for
outstanding achievements.

10thanniversary celebrations

The 10th anniversary celebrations was a function to the remembered forever conducted for a
period of over 2 months starting with

Education competition for school level/college level conducted all ove3r Andhra Pradesh and the
final at the Head Office 3rd floor own building A/C meeting hall.

A wide coverage of the entire functions and connected activities in the News Paper/TV/and
various other Medias clippings will reveal the popularity and image of the company.

29
The response and the way in which is celebrated including the subjects were highly appreciated
by most of the heading news papers circulated spread all over Andhra Pradesh.

Also 4 eminent personalitiess including

Renowned journalist kuldinp nayar


Social activist Ranendra Singh Recipdent of prestigious Raman Magsaysay award for
community leadership.
Erdy Godavari district Collector Poonam Malakondaith for successful implementation of
the literacy programme in the district.
Father Kusy for his social service to the street children.

The occasion was not only elevated the ideology of felicitating eminent personalities,
such the way is which if was done has created a history is Vijayawada credit through profit shoe
company.

Also the entire 200 Team members of Profit shoe Co.(P)Ltd., and their families joined to enjoy
the programme including cultural /social and recognition of outstanding employees with cash
awards on their target achievements.

In August 1999, the company made an endowment donation to Nagarjuna University for
instituting a gold medal to be awarded every year to the topper in civil engineering in
commemoration of the death anniversary of Sir Arthur Cotton. And also chief Minister Relief
Funds at the time of floods and natural calamities.

We are supplying to Navodaya Schools Visakha milk dairy ltd and to South Central
railways Guntakal and Kazipet division track workers shoes. Previously we have supplied to
Vizag Naval base staff.

Careers @profit

Why should you work at profit? Here are four reasons you may want to. Be an
innovator- Whether you`re fresh out of college, or an experienced professional in retail, Profit is

30
accompany where you can cultivate your expertise, use your knowledge to the fullest extent, or
re-invent yourself while working on society`s most pressing issues. Work in the company of
experts- Collaborate with like-minded people in an environment that embraces individual
differences, and rewards your best work. Deepen your expertise and learn from a network of
1000 experts that use our collective intelligence to develop the company year by year. Be part of
a team that encourages constant learning and provides the situations, training, and interactions
that will help develop your expertise. Build the career you want- At PROFIT, we put more
emphasis on career development and give you more resources than anywhere else that serve you
well here, and for long afterward.

PROFIT offers competitive benefits, as well as an company-leading practice of performance-


based bonuses for all employees. PROFIT gives you the power to design your workday, and your
life, according to your unique styles and needs. Work for a company you can be proud of- For
more than a decade PROFIT has defined itself not only by its leaders, products but by its
fundamental values. PROFIT`s Values serve as the foundation of our culture and brand, and
ensure that we deliver innovations that matter for our company, & our clients. Join with us .For
the excellent & bright career

ORGANIZATION STRUCTURE

31
MANAGING DIRECTOR

VICE CHAIR PERSON

DEPUTY GENERAL MANAGER

ASSISTANT GENERAL MANAGER

Q.C DEPARTMENT PLANT MANAGER

Q. C. INCHARGE PRODUCTION MANAGER-1

PRODUCTION MANAGER-2

SENIOR
MICROBIOLOGIST WORKERS SENIOR SUPERVISORS

JUNIOR WORKERS
MICROBIOLOGIST

THEORETICAL FRAMEWORK

INTRODUCTION TO CUSTOMER SATISFACTION


32
A term frequently used in marketing, is a measure of how products and services

supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as

"the number of customers, or percentage of total customers, whose reported experience with a

firm, its products, or its services (ratings) exceeds specified satisfaction goals." In a survey of

nearly 200 senior marketing managers, 71 percent responded that they found a customer

satisfaction metric very useful in managing and monitoring their businesses. It is seen as a key

performance indicator within business and is often part of a Balanced Scorecard. In a

competitive marketplace where businesses compete for customers, customer satisfaction is seen

as a key differentiator and increasingly has become a key element of business strategy. Within

organizations, customer satisfaction ratings can have powerful effects. They focus employees on

the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they

warn of problems that can affect sales and profitability. These metrics quantify an important

dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which

is both free and highly effective.

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do

this, firms need reliable and representative measures of satisfaction. In researching satisfaction,

firms generally ask customers whether their product or service has met or exceeded expectations.

Thus, expectations are a key factor behind satisfaction. When customers have high expectations

and the reality falls short, they will be disappointed and will likely rate their experience as less

than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction

rating than a budget moteleven though its facilities and service would be deemed superior in

absolute terms.

33
The importance of customer satisfaction diminishes when a firm has increased bargaining
power. For example, cell phone plan providers, such as AT&T and Verizon, participate in an
industry that is an oligopoly, where only a few suppliers of a certain product or service exist.

As such, many cell phone plan contracts have a lot of fine print with provisions that they
would never get away if there were, say, a hundred cell phone plan providers, because customer
satisfaction would be way too low, and customers would easily have the option of leaving for a
better contract offer.

Definitions of customer satisfaction:

Customer satisfaction, a business term, is a measure of how products and services supplied by a

company meet or surpass customer expectation. It is seen as a key performance indicator

within business and is part of the four of a Balanced Scorecard

Customer satisfaction is defined as "the number of customers, or percentage of total


customers, whose reported experience with a firm, its products, or its services
(ratings) exceeds specified satisfaction goals.
Customer satisfaction is a measure of how your organizations "total product"
performance in relation to a set of customer requirements.

TYPES OF CUSTOMERS

EXTERNAL CUSTOMERS
INTERNAL CUSTOMERS

EXTERNAL CUSTOMERS

External customers are clients that go to utilize or purchase something from an


organization and have a choice on who to purchase from.

34
INTERNAL CUSTOMERS
Internal customers are people who help an organization to serve the end customers. They
give some outputs for the organization in return for inputs.

CUSTOMER SATISFACTION IN 7 STEPS: BY ADRIAN THOMPSON

Its a well known fact that no business can exist without customers. In the business of
Website design, its important to work closely with your customers to make sure the site or
system you create for them is as close to their requirements as you can manage. Because its
critical that you form a close working relationship with your client, customer service is of vital
importance. What follows are a selection of tips that will make your clients feel valued, wanted
and loved.

1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If
youre not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured,
though, it does get easier over time. Its important to meet your customers face to face at least
once or even twice during the course of a project. my experience has shown that a client finds it
easier to relate to and work with someone theyve actually met in person, rather than a voice on
the phone or someone typing into an email or messenger program. When you do meet them, be
calm, confident and above all, take time to ask them what they need. I believe that if a potential
client spends over half the meeting doing the talking, youre well on your way t

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with all customers

35
queries within the space of a few hours, but at least email or call them back and let them know
youve received their message and youll contact them about it as soon as possible. Even if
youre not able to solve a problem right away, let the customer know youre working on it.

A good example of this is my Web host. Theyve had some trouble with server hardware
which has caused a fair bit of downtime lately. At every step along the way I was emailed and
told exactly what was going on, why things were going wrong, and how long it would be before
they were working again. They also apologized repeatedly, which was nice.

3. Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile through the phone. This is
very true. Its very important to be friendly, courteous and to make your clients feel like youre
their friend and youre there to help them out. There will be times when you want to beat your
clients over the head repeatedly with a blunt object it happens to all of us. Its vital that you
keep a clear head, respond to your clients wishes as best you can, and at all times remain polite
and courteous.

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when youre just starting out, but a clearly defined
customer service policy is going to save you a lot of time and effort in the long run. If a customer
has a problem, what should they do? If the first option doesnt work, then what? Should they
contact different people for billing and technical enquiries? If theyre not satisfied with any
aspect of your customer service, who should they tell?

Theres nothing more annoying for a client than being passed from person to person, or
not knowing who to turn to. Making sure they know exactly what to do at each stage of their
enquiry should be of utmost importance. So make sure your customer service policy is present on
your site and anywhere else it may be useful.

5. Attention to Detail

36
Have you ever received a Happy Birthday email or card from a company you were a
client of? Have you ever had a personalized sign-up confirmation email for a service that you
could tell was typed from scratch? These little niceties can be time consuming and arent always
cost effective, but remember to do them. Even if its as small as sending a Happy Holidays email
to all your customers, its something. It shows you care; it shows there are real people on the
other end of that screen or telephone; and most importantly, it makes the customer feel
welcomed, wanted and valued.

6. Anticipate Your Clients Needs & Go Out Of Your Way to Help Them Out

Sometimes this is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship. Take this as an
example: youre working on the front-end for your clients exciting new ecommerce Endeavour.
You have all the images, originals and files backed up on your desktop computer and the site is
going really well. During a meeting with your client he/she happens to mention a hard-copy
brochure their internal marketing people are developing. As if by magic, a couple of weeks later
a CD-ROM arrives on their doorstep complete with high resolution versions of all the images
youve used on the site. A note accompanies it which reads:

7. Honor Your Promises

Its possible this is the most important point in this article. The simple message: when
you promise something, deliver. The most common example here is project delivery dates.
Clients dont like to be disappointed. Sometimes, something may not get done, or you might
miss a deadline through no fault of your own. Projects can be late, technology can fail and sub-
contractors dont always deliver on time. In this case a quick apology and assurance itll be ready
ASAP wouldnt go amiss.

Dependence between quality, satisfaction and profitability

Quality of Customer satisfaction Profitability


product/service

37
MEANING OF CUSTOMER SATISFACTION:

Customer satisfaction refers to the extent to which customers are happy with the
products and services provided by a business. Customer satisfaction levels can be measured
using survey techniques and questionnaires. Gaining high levels of customer satisfaction is very
important to a business because satisfied customers are most likely to be loyal and to make
repeated orders and to use a wide range of services offered by a business. The need to satisfy
customer for success in any commercial enterprises is very obvious. The income of all
commercial enterprises is derived from the payments received for the products and services to its
external customers. Customers are the sole reason for the existence of commercial
establishments. Since sales are the most important goal of any commercial enterprise, it becomes
necessary to satisfy customers.

For customer satisfaction it is necessary to establish and maintain certain important


characteristics like:

a. Quality

b. Fair prices

c. Good customer handling skills

d. Efficient delivery

e. Serious consideration of consumer complaints.

Satisfaction is the feeling of pleasure or disappointment attained from comparing a


products perceived performance (outcome) in relation to his or her expectations. If the
performance falls short of expectations, the customer is dissatisfied. If the performance matches
the expectations, the customer is satisfied.

38
WHY CUSTOMER SATISFACTION IS SO IMPORTANT

When we buy a product or service, we expect it to be right. We dont jump up and down
with glee saying isnt it wonderful, it actually worked. That is what we paid our money for.
Add to this our world of ever exacting standards. We now have products available to us that
would astound our great grandparents and yet we quickly become used to them. The bar is
getting higher and higher. At the same time our lives are ever more complicated with higher
stress levels. Delighting customers and achieving high customer satisfaction scores in this
environment is ever more difficult. And even if your customers are completely satisfied with
your product or service, significant chunks of them could leave you and start doing business with
your competition.

A market trader has a continuous finger on the pulse of customer satisfaction. Direct
contact with customers indicates what he is doing right or where he is going wrong. Such
informal feedback is valuable in any company but hard to formalize and control in anything
much larger than a corner shop. For this reason surveys are necessary to measure and track
customer satisfaction.

Developing a customer satisfaction programme is not just about carrying out a survey.
Surveys provide the reading that shows where attention is required but in many respects, this is
the easy part. Very often, major long lasting improvements need a fundamental transformation in
the company, probably involving training of the staff, possibly involving cultural change. The
result should be financially beneficial with less customer churn, higher market shares, premium
prices, stronger brands and reputation, and happier staff. However, there is a price to pay for
these improvements.

Costs will be incurred in the market research survey. Time will be spent working out an
action plan. Training may well be required to improve the customer service. The implications of
customer satisfaction surveys go far beyond the survey itself and will only be successful if fully
supported by the echelons of senior management.

39
SIX STAGES OF CUSTOMER SATISFACTION PROGRAMME:

Who should be interviewed?


What should be measured?

How should the interview be carried out?

How should satisfaction be measured?

What do the measurements mean?

How to use customer satisfaction surveys to greatest effect?

1. WHO SHOULD BE INTERVIEWED?

Some products and services are chosen and consumed by individuals with little
influence from others. The choice of a brand of cigarettes is very personal and it is clear who
should be interviewed to find out satisfaction with those cigarettes. But who should we interview
to determine the satisfaction with breakfast cereal? Is it the person that buys the cereal (usually a
parent) or the person that consumes it (often a child)? And what of a complicated buying
decision in a business to business situation.

Who should be interviewed in a customer satisfaction survey for a truck manufacturer


the driver, the transport manager, the general management of the company? In other business to
business markets there may well be influences on the buying decision from engineering,
production, purchasing, quality assurance, plus research and development. Because each
department evaluates suppliers differently, the customer satisfaction programme will need to
cover the multiple views.

A good customer satisfaction program will include at least the most important of these
types of channel customers, perhaps the wholesalers as well as the final consumers. One of the
greatest headaches in the organization of a business to business customer satisfaction survey is
the compilation of the sample frame the list from which the sample of respondents is selected.
Building an accurate, up-to-date list of customers, with telephone numbers and contact details is
nearly always a challenge.

40
The sales teams Christmas card lists may well be the best lists of all but they are kept
close to the chest of each sales person and not held on a central server. Building a good sample
frame nearly always takes longer than was planned but it is the foundation of a good customer
satisfaction survey.

Customer satisfaction surveys are often just that surveys of customers without
consideration of the views of lost or potential customers. Lapsed customers may have stories to
tell about service issues while potential customers are a good source of benchmark data on the
competition. If a survey is to embrace non-customers, the compilation of the sample frame is
even more difficult.

The quality of these sample frames influences the results more than any other factor since
they are usually outside the researchers control. The questionnaire design and interpretation are
within the control of the researchers and these are subjects where they will have considerable
experience.

2. WHAT SHOULD BE MEASURED?

In customer satisfaction research we seek the views of respondents on a variety of issues


that will show how the company is performing and how it can improve. This understanding is
obtained at a high level (how satisfied are you the ABC Ltd overall?) and at a very specific
level (how satisfied are you with the clarity of invoices?).High level issues are included in
most customer satisfaction surveys and they could be captured by questions such as:

What is your overall satisfaction with ABC Ltd?


How likely or unlikely are you to buy from ABC Ltd again?

How likely or unlikely would you be to recommend ABC Ltd to a friend or colleague?

3. HOW SHOULD THE INTERVIEW BE CARRIED OUT?

There are some obvious indicators of customer satisfaction beyond survey data. Sales
volumes are a great acid test but they can rise and fall for reasons other than customer
satisfaction.

41
Customer complaints say something but they may reflect the views of a vociferous
few. Unsolicited letters of thanks; anecdotal feedback via the sales force are other indicators.
These are all worthwhile indicators of customer satisfaction but on their own they are not
enough. They are too haphazard and provide cameos of understanding rather than the big picture.
Depth interviews and focus groups could prove very useful insights into customer satisfaction
and be yet another barometer of performance. However, they do not provide benchmark data.

They do not allow the comparison of one issue with another or the tracking of changes
over time. The tool kit for measuring customer satisfaction boils down to three options, each with
their advantages and disadvantages. The tools are not mutually exclusive and a self-completion
element could be used in a face to face interview.

So too a postal questionnaire could be preceded by a telephone interview that is used to collect
data and seek co-operation for the self-completion element. When the survey is carried out by
phone or face to face, co-operation is helped if an advance letter is sent out explaining the
purpose of the research. Logistically this may not be possible in which case the explanation for
the survey would be built into the introductory script of the interviewer.

4. HOW SHOULD SATISFACTION BE MEASURED?

Customers express their satisfaction in many ways. When they are satisfied, they mostly
say nothing but return again and again to buy or use more. When asked how they feel about a
company or its products in open-ended questioning they respond with anecdotes and may use
terminology such as delighted, extremely satisfied, very dissatisfied etc. Collecting the motleys
variety of adjectives together from open ended responses would be problematical in a large
survey. To overcome this problem market researchers ask people to describe a company using
verbal or numeric scales with words that measure attitudes.

People are used to the concept of rating things with numerical scores and these can work
well in surveys. Once the respondent has been given the anchors of the scale, they can readily
give a number to express their level of satisfaction.

42
Typically, scales of 5, 7 or 10 are used where the lowest figure indicates extreme
dissatisfaction and the highest shows extreme satisfaction. The stem of the scale is usually quite
short since a scale of up to 100 would prove too demanding for rating the dozens of specific
issues that are often on the questionnaire.

Measuring satisfaction is only half the story. It is also necessary to determine customers
expectations or the importance they attach to the different attributes, otherwise resources could
be spent raising satisfaction levels of things that do not matter. The measurement of expectations
or importance is more difficult than the measurement of satisfaction. Many people do not know
or cannot admit, even to themselves, what is important. Can I believe someone who says they
bought a Porsche for its engineering excellence? Consumers do not spend their time
rationalizing why they do things, their views change and they may not be able to easily
communicate or admit to the complex issues in the buying argument.The same interval scales of
words or numbers are often used to measure importance 5, 7 or 10 being very important and 1
being not at all important.

However, most of the issues being researched are of some importance for otherwise they
would not be considered in the study. As a result, the mean scores on importance may show little
differentiation between the vital issues such as product quality, price and delivery and the nice to
have factors such as knowledgeable representatives and long opening hours. Ranking can
indicate the importance of a small list of up to six or seven factors but respondents struggle to
place things in rank order once the first four or five are out of the way. It would not work for
determining the importance of 30 attributes.

As a check against factors that are given a stated importance score, researchers can
statistically calculate (or derive) the importance of the same issues. Derived importance is
calculated by correlating the satisfaction levels of each attribute with the overall level of
satisfaction. Where there is a high link or correlation with an attribute, it can be inferred that the
attribute is driving customer satisfaction.

43
5. WHAT DO THE MEASUREMENTS MEAN?

The scores that are achieved in customer satisfaction surveys are used to create a
customer satisfaction index or CSI. There is no single definition of what comprises a customer
satisfaction index. Some use only the rating given to overall performance. Some use an average
of the two key measurements - overall performance and the intention to re-buy (an indication of
loyalty). Yet others may bring together a wider basket of issues to form a CSI.

The average or mean score of satisfaction given to each attribute provides a league table
of strengths and weaknesses. As a guide, the following interpretation can be made of scores from
many different customer satisfaction surveys:

CUSTOMER PERCEPTION QUALITY

ASQ survey shows that important factors that influence purchasing are:
1. Performance
2. Features
3. Service
4. Warranty
5. Price
6. Reputation of the product.

Customer Value
Customers seek to maximize value by:
Estimating which offer (product/firm) delivers the most value
Forming an expectation of value and acting upon it (purchase)
Evaluating their usage experience against the expectations

44
FIGURE - 1.2 CUSTOMER SATISFACTIONS AND THE EFFECT ON CUSTOMER
LOYALTY

This raises the interesting question what is achievable and how far can we go in the pursuit of
customer satisfaction. Abraham Lincolns quote about fooling people could be usefully modified
for customer satisfaction research to read You can satisfy all the people some of the time, and
some of the people all the time, but you cannot satisfy all the people all the time. As marketers
we know that we must segment our customer base. It is no good trying to satisfy everyone, as we
do not aim our products at everyone. What matters is that we achieve high scores of satisfaction
in those segments in which we play. Obtaining scores of 9 or 10 from around a half to two thirds
of targeted customers on issues that are important to them should be the aim. Plotting the
customer satisfaction scores against the importance score will show where the strengths and
weaknesses lie, (see diagram 2) with the main objective to move all issues to the top right box.

45
6. HOW TO USE CUSTOMER SATISFACTION STUDIES TO GREATEST
EFFECT

No company can truly satisfy its customers unless top management is fully behind the
programme. This does not just mean that they endorse the idea of customer satisfaction studies
but that they are genuinely customer orientated.Northwest Airlines, the scheduled airline based in
Minneapolis/St Paul, makes an interesting case study. It has an excellent website and a
sophisticated telephone sales centre; a senior executive responsible for customer service; a well
thought-out frequent flyer programme; and twelve customer service commitments signed by
Richard Anderson its chief executive. It also appears to be carrying planeloads of disgruntled
passengers.

The American Customer Satisfaction Index, based on interviews with a random sample
of 65,000 consumers, gave northwest a score of 56 out of a possible 100. Of the 160 named
corporations for which data is collected, only Pacific Gas & Electricity, the power utility that
failed to keep the lights on in California, scored lower.

So what is northwest doing wrong? A decision to remove children's meals from in-flight
menus will not have helped its case. It is salutary to look at what rivals such as Continental
Airlines have been doing right. Continental was the success story of the 1990s in the US airline
industry and, according to the ACSI, the only scheduled carrier to maintain customer satisfaction
throughout the decade. Among the unconventional management methods introduced by Gordon
Bethune, chairman and chief executive since 1994, is a $65 cash bonus paid to employees each
month if Continental is among the most punctual carriers. It makes sense to reward, in Pavlov
Ian fashion, immediately after the event and not six or twelve months down the line when the
effect will have been forgotten. Two companies, both ostensibly committed to customer
satisfaction, but one markedly outperforming the other. The customer satisfaction scores are only
part of the story.

A customer satisfaction index is a snapshot at a point in time. Peoples views change


continuously and the performance of companies in delivering customer satisfaction is also
changing. Measuring satisfaction must be a continuous process.

46
Tracking surveys provide benchmarks of ones own companys performance and, if
competitor suppliers are also being measured, there will be measurements of relative
performance. This places considerable onus on the researcher to design a survey that will
accurately show real differences, one survey to another. The questionnaire needs to be consistent
so there is no dispute about answers differing because of changes to questions. The sample of
each survey must be large enough to provide a reliable base and the selection of the sample must
mirror earlier surveys so like is being compared with like.

Benchmarking in customer satisfaction can go beyond comparisons with direct


competitors. Some firms have taken this type of benchmarking a step further. Instead of just
developing a benchmark on competitors, they identify the best firm in any industry at a particular
activity. L.L. Bean may be benchmarked for telephone order processing or customer service.
American Express may be benchmarked for billing and payment transactions.

There has been considerable research into the links between customer satisfaction and
employee satisfaction Kaplan & Norton (1996), McCarthy (1997), Heskett, Sasser &
Schlesinger (1997). The argument is a very obvious one. Happy employees work harder and try
harder and so create satisfied customers. A co-ordinated customer satisfaction programme should
consider linking with an employee attitude survey. The employee attitude survey could also be
used to check out how well staff believe they are satisfying customers as there could be a
dangerous gap between internal perceptions of performance and those of customers.

THEORIES OF CUSTOMER SATISFACTION

A number of theoretical approaches have been utilized to explain the relationship


between disconfirmation and satisfaction. Still again there are a number of theories surrounding
the satisfaction and service paradigm

Four theoretical approaches have been advanced under the umbrella of consistency theory:

47
(1) Assimilation theory
(2) Contrast theory; and
(3) Negativity theory.

1. Assimilation Theory
Assimilation theory is based on Festingers (1957) dissonance theory. Dissonance theory
posits that consumers make some kind of cognitive comparison between expectations about the
product and the perceived product performance.This view of the consumer post-usage evaluation was
introduced into the satisfaction literature in the form of assimilation theory According to Anderson
(1973), consumers seek to avoid dissonance by adjusting perceptions about a given product to bring
it more in line with expectations.
Consumers can also reduce the tension resulting from a discrepancy between expectations and
product performance either by distorting expectations so that they coincide with perceived product
performance or by raising the level of satisfaction by minimizing the relative importance of the
disconfirmation experienced.

Assimilation Theory Criticism


Payton et al (2003) argues that Assimilation theory has a number of shortcomings.
First, the approach assumes that there is a relationship between expectation and satisfaction
but does notspecify how disconfirmation of an expectation leads to either satisfaction or
dissatisfaction.
Second, the theory also assumes that consumers are motivated enough to adjust either their
expectations or their perceptions about the performance of the product.A number of
researchers have found that controlling for actual product performance can lead to a positive
relationship between expectation and satisfaction. Therefore, it would appear that
dissatisfaction could never occur unless the evaluative processes were to begin with negative
consumer expectations.
2.Contrast Theory Contrast

Theory was first introduced by Hovland, Harvey and Sherif (1987).Dawes et al (1972)
define contrast theory as the tendency to magnify the discrepancy between ones own attitudes
and the attitudes represented by opinion statements.Contrast theory presents an alternative view
of the consumer post-usage evaluation process than was presented in assimilation theory in that

48
post-usage evaluations lead to results in opposite predictions for the effects of expectations on
satisfaction.
According to the contrast theory, any discrepancy of experience from expectations will
be exaggerated in the direction of discrepancy. If the firm raises expectations in his advertising,
and then a customers experience is only slightly less than that promised, the product/service would
be rejected as totally un-satisfactory.
Conversely, under-promising in advertising and over-delivering will cause positive disconfirmation
also to be exaggerated.

Contrast Theory Criticism

Several studies in the marketing literature have offered some support for this
theory. The contrast theory of customer satisfaction predicts customer reaction instead of
reducing dissonance; the consumer will magnify the difference between expectation and the
performance of the product/service.

3. Negativity Theory
This theory developed by Carlsmith and Aronson (1963) suggests that any discrepancy
of performance from expectations will disrupt the individual, producing negative energy.
Negative theory has its foundations in the disconfirmation process. Negative theory states that
when expectations are strongly held, consumers will respond negatively to any disconfirmation.
Accordingly dissatisfaction will occur if perceived performance is less than expectations or if
perceived performance exceeds expectations.

DATA ANALYSIS AND INTERPRETATION


1) How do you come to know about profit Shoe Company?

No. of Customers Percentage of Customers

Own source 50 50

49
Advertisements 15 15

Friends 15 15

Neighbours 20 20

Total 100 100

INTERPRETATION:

From above result it is clear that 50% of respondents are come to the company by
own source, 15% of respondents are come to the company by advertisements, 15% of
respondents are come to the company through friends, and remaining 20% are neighbors.

2. Rate your first impression you had immediately after entering the showroom

No. Of Customers Percentage Of Customers

Excellent 20 20

Very good 50 50

50
Good 20 20

Average 10 10

Total 100 100

INTERPRETATION:

From above result it is clear that 20% of respondents are said


Excellent, 50% of respondents are said very good, 20% of respondents are said good
and remaining 10% of respondents said average

3. Is the showroom accessible and clearly visible from outside?

No. Of Customers Percentage Of Customers

Yes 80 80

No 20 20

51
Total 100 100

INTERPRETATION:

From above result it is clear that 80% of the respondents are said yes
and remaining 20%respondents are said no .

4) How long are you associated with our company?

No. Of Customers Percentage Of Customers

More than 10 years 16 16

5-10 years 24 24

52
2-5 years 22 22

0-2 years 38 38

Total 100 100

INTERPRETATION

From above result it is clear that 16 % of respondents are associated with more
than 10years , 24% of respondents are from 5-10 years, 22% of respondents are from 2-5years
and remaining respondents are associated are from 0-2years .

5) How often you visit the showroom in a year?

No. Of Customers Percentage Of Customers

More than 6 times 6 6

53
4-6 times 14 14

3-4 times 27 27

1-2 times 53 53

Total 100 100

INTERPRETATION:

From above result it is clear that 6% of respondents are visit the showroom more than
6 times, 14% of respondents are 4-6 times, 27% of respondents are 3-4times and remaining 53%
respondents are visit 1-2 times.

6) Generally you prefer to visit the showroom to shop for?

No. Of Customers Percentage Of Customers

For self 11 11

54
Whole family 19 19

Spouse 23 23

Neighbors & friends 37 37

All 10 10

Total 100 100

INTERPRETATION:

From above result it is clear that 11% respondents are prefer to visit this showroom for
self, 19% of the respondents are prefer to visit with whole family, 23% of respondents
are spouse, 37% of the respondents are visit with Neighbor respondents are prefer to visit
all.

7) Do you feel that the showroom is having an extensive range of products?

No. Of Customers Percentage Of Customers

Yes 73 73

55
No 27 27

Total 100 100

INTERPRETATION:

From above result it is clear that 73% of respondents are said yes and
remaining 27% of respondents are said no.

8) What is the price range that you prefer to pay for various types of foot wear

for each pair?

No. Of Customers Percentage Of Customers

0-250 18 18

56
250-400 35 35

400-600 27 27

600-800 13 13

>1000 7 7

Total 100 100

INTERPRETATION:

From above result it is clear that 18% of respondents price range prefer to pay various types
of footwear in 0-250, 35% of respondents are said 250-400, 27% of the respondents are said
400-600, 13% of respondents are said 600-800 and remaining 7% of respondents are said
>1000.

9) Do you feel that display racks are providing comfort in accessing the products that you are
looking for?

No. Of Customers Percentage Of Customers

Yes 83 83

57
No 17 17

Total 100 100

INTERPRETATION:

From above result it is clear that 83% of the respondents are looking for comport acesssing the
products said yes and remaining 17% of the respondents are said no.

10) How do you rate the non footwear product range at our showroom?

No. Of Customers Percentage Of Customers

Excellent 11 11

58
Good 39 39

Average 44 44

Poor 6 6

Total 100 100

INTERPRETATION:

From above result it is clear that 11% of respondents are said non foot wear products are
excellent,39% of respondents are said good, 44% of the respondents are said average and
remaining 6% of the respondents are said poor.

11) How much of time our staff took in attending you?

No. Of Customers Percentage Of Customers

Immediately 81 79

59
2-5 minutes 13 13

5-10 minutes 6 8

Total 100 100

INTERPRETATION:

From above result it is clear that 81% of the respondents are said staff took in
attending immediately, 13% of the respondents are said 2-5 minutes and remaining 6% of the
respondents are said 5-10 minutes.

12) How much time you spent in the showroom?

No. Of Customers Percentage Of Customers

10 minutes 50 50

60
10-20 minutes 50 50

Total 100 100

INTERPRETATION:

From the above result it is clear that 50% of the respondents are said that they spent in the
showroom in 10 minutes and remaining 50% of the respondents are said 10- 20 minutes.

13) Do you feel that the products offered in this showroom are trendy and meeting to your

Requirements?

No. Of Customers Percentage Of Customers

YES 50 50

61
NO 50 50

Cant say 0 0

Total 100 100

Interpretation:

From above table it is clear 50% respondents are feeling Yes that the products offered
in the show room are trendy and meeting to our requirements and remaining are feeling No.

14) Are you satisfied with the services rendered by our staff?

No. Of Customers Percentage Of Customers

Yes 89 89

62
No 9 9

Cant say 2 2

Total 100 100

INTERPRETATION:

From above result it is clear that 89% of respondents are said satisfied with the services rendered
by our staff , 9% of the respondents are said no and remaining 2% of the respondents are cant
say.

15) How do you rate our products and services with that of other showroom Products?

No. Of Customers Percentage Of Customers

Excellent 96 96

Good 3 3

63
Average 1 1

Total 100 100

INTERPRETATION

From above result it is clear that 96% of the respondents are said products and services with the
other showrooms is excellent, 3% of the respondents are said good and remaining 1% of the
respondents are said average.

16) What is your opinion about the price of the products?

No. Of Customers Percentage Of Customers

64
High 45 45

Moderate 35 35

Low 20 20

Total 100 100

INTERPRETATION:

From above result it is clear that 45% of respondents are said price of the
products is high, 35% of respondents are said module and remaining 20% of respondents are
said low.

17) What is your opinion about the quality of the products that are offered in this showroom?

No. Of Customers Percentage Of Customers

65
Excellent 92 92

Good 7 7

Average 1 1

Total 100 100

INTERPRETATION:

From above result it is clear that 92% of respondents are said quality of the products is
excellent, 7% of respondents are said good and remaining 1% of respondents are said average.

18) How do you rate of the post sales service of the showroom?

No. Of Customers Percentage Of Customers

66
Excellent 52 52

Good 38 38

Average 10 10

Total 100 100

INTERPRETATION:

From above result it is clear that52% of respondents are said post sale service of this
showroom excellent, 38% of respondents are said good and remaining respondents are said
average.

FINDINGS

67
Most of the customers will know about the company by Own source.
80% of the customers are felt Yes that the visibility of the show room is clear from

out side.

50 % of customers are often visiting more than 2 times for a year and only 6% of

customers are often visting the show room 6 times in a year.

37% of the customers are prefering to visit the showroom to shop with their

Neighbours and friends.


73% of the customers are feeling Yes that the showroom is having an extensive range

of products.
50% of the customers are spending nearly 10-20 minutes in the show romm.
52% of the cutomers are feeling excellent about The rate of the post sales service.
Most of the customers felt excellent about the quality of the products that are offered

in the showroom.
45% of the respondents are feel that the prices of footwear in the showroom are high

and the remaining feel moderate.


Most of the customers are rated excellent for the products and services offered with

that of other showroom products.


\90% of the respondents are satisfied with the services rendered by the staff in the

showroom.

SUGGESTIONS

Most of the customers during the survey opined that the organization should enhance the
quality of store brands or brands. Hence it is suggested to the organization that it should
enhance the quality of its products so as to offer a better value for customers money.

Care should be taken to improve the service efficiency that aids to retain the existing
customers.

68
The role of salesmen is to make customers shopping experience a pleasant one by helping
him. However many customers complained that the sales representatives are not aware of
the current offers and discounts. Hence the organization needs to put special focus on
these aspects of sales representative training.

Company has to get periodical feedback from all its customers and it can track them
constantly to know their queries.

The responses of the respondents regarding the level of satisfaction of overall service are
clustered inthe satisfactory region. The management may take steps to convert these into
highly satisfactory.

CONCLUSION

From this analysis it is seen that the satisfaction level about the over-all service
does not depend on response time or price but depends on the level of satisfaction with quality. It
is therefore clear that the customers perception about service level depends on their perception
about quality. It is also seen that satisfaction level with quality depends on the rejection rates
experienced by the customers. Therefore the company should make efforts to ensure that the
rejection level at the customer end is minimized. This will improve the customers perception
69
about quality as well as service level. Since the period of response and price levels do not
influence perception about service level, it is adequate if the company maintains the present level
but concentrate its effort in reducing rejections experienced by the customer.

BIBLIOGRAPHY

Phillip kotler marketing management: Tata mc grawhill, first edition

Neeraj Kumar R.C.rethia chunawala marketing communication Himalaya publications

P.K.Agarwal marketing management pragathi publications third edition

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Websites

http://www.indiaretailing.com/2017/03/22/fashion/stepping-into-a-bigger-better-
future-a-report-on-indias-footwear-market/

https://www.qualtrics.com/support/research-resources/customer-satisfaction-theory/

http://www.utgjiu.ro/revista/ec/pdf/2014-02/10_Isac,%20Rusu%201.pdf

https://en.wikipedia.org/wiki/Customer_satisfaction

http://www.financialexpress.com/budget/economic-survey-2017/economic-survey-
2017-leather-and-footwear-industry-crucial-in-generating-formal-and-productive-
jobs/530780/

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QUESTIONNAIRE

Name:., Gender: male/female, age:.years

DOB:.., occupation:, Income per month:

Contact No(s):..,..,..

Email id:

1) How do you come to know about profit Shoe Company?

a) Own source b) Advertisements c) friends d) Neighbour e) Others ( )

2) Rate your first impression you had immediately after entering the showroom?

a) Excellent b) very good c) good d) average e) Poor ( )

3) Is the showroom accessible and clearly visible from outside?

a) Yes b) no ( )

4) How long are you associated with our company?

a) More than 10 years b) 5-10 years c) 2-5 years d) 0-2 years ( )

5) How often you visit the showroom in a year?

a) More than 6 times b) 4-6 times c) 3-4 times d) 1-2 times ( )

6) Generally you prefer to visit the showroom to shop for?

a) For self b) Whole family c) Spouse

d) Neighbors & friends e) All ( )

7) Do you feel that the showroom is having an extensive range of products?

a) Yes b) No ( )

8) What is the price range that you prefer to pay for various types of foot wear?

for each pair?

a)0-250 b) 250-400 c) 400-600 d) 600-800 e) > 1000 ( )

72
9) Do feel that display racks are providing comfort in accessing the products that

you are looking for?

a) Yes b) No ( )

10) How do you rate the non footwear product range at our showroom?

a) Excellent b) Good c) Average d) Poor ( )

11) How much of time our staff took in attending you?

a) Immediately b) 2-5 minutes c) 5-10 minutes ( )

12) How much time you spent in the showroom?

a) 10 minutes b) 10-20 minutes ( )

13) Do you feel that the products offered in this showroom are trendy and

meeting to your requirements?

a)Yes b) No c) Cant say ( )

14) Are you satisfied with the services rendered by our staff?

a) Yes b) No c) Cant say ( )

15) How do you rate you products and services with that of other showroom

Products?

a) Excellent b) Good c) Average ( )

16) What is your opinion about the price of the products ?

a) High b) Moderate c) Low ( )

17) What is your opinion about the quality of the products that are offered in

this showroom?

a) Excellent b) Good c) Average ( )

18) How do you rate of the post sales service of the showroom?

a) Excellent b) Good c) Average ( )

73

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