10 - Chapter 4 PDF

CHAPTER IV
SUPERMARKETS IN TAMIL NADU
A Supermarket is a large low cost, low margin, high volume self
service operation, designed to meet the needs for food, groceries, and other
non-food items. It is a store with a selling area of between 400 sq.m and
2500 sq.m, selling at least 70% of its merchandise comprising foodstuffs and
everyday commodities. Internationally, the size of these stores varies from
8000 to 20,000 square feet. Tesco, ASDA, Safeway, and Kroger are some of
the large international players. It is one of the fastest growing retail formats
in India. Examples of supermarkets in the Indian market scenario are
Nilgiris, Foodworld, Reliance Fresh, Subhiksha, More, and Food Bazaar etc.
Profile of the Customers of Supermarkets in Tamil Nadu
The demographic profile of the shoppers in Supermarkets are
analyzed with respeJct to variables such as Sex, Age, Education,
Occupation, Income, Family Cycle, Ownership of Assets, and Mobility as
given below.
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Sex
Table 4.1 Frequency Distribution of Sex of Respondents
Sex Chennai Coimbatore Madurai Trichy Tamil Nadu
Male 101 49 32 17 199

(80.80) (65.30) (64.00) (34.00) (66.34)
Female 24 26 18 33 101
(19.20) (34.70) (36.00) (66.00) (33.66)
Total 125 75 50 50 300
(100.00) (100.00) (100.00) (100.00) (100.00)
Note: The figures in the parentheses are per cent to total.

Source: Primary data
The frequency distribution of the sex of customers in Tamil Nadu has been
analyzed and the results are presented in Table 4.1. The results shows about
66.34 per cent are males and the rest of 33.66 per cent are females. The male
respondents vary from 101 in Chennai to 17 in Trichy while the female
respondents range from 26 in Coimbatore to 18 in Madurai.
Age
The frequency distribution of the age of respondents in Tamil Nadu
has been analyzed and the results are presented in Table 4.2. The results
indicate that about 47.34 per cent belong to the age group of 20-34 years
followed by 35-50 years (42.00 per cent), 50-60 years (8.00 per cent) and
more than 60 years (2.66 per cent). The respondents in the age group of
20-34 years range from 70 in Chennai to 13 in Madurai while the age group
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of 35-50 years varies from 52 in Chennai to 24 in Trichy. The age group of
50-60 years varies from 13 in Coimbatore to 2 in both Chennai and Trichy,
while the age group of more than 60 years varies from 5 in Madurai to 1 in
Chennai.
Table 4.2 Frequency Distribution of Age of Respondents
Age Chennai Coimbatore Madurai Trichy Tamil Nadu
20-34 70 35 13 24 142
Years
(56.00) (46.70) (26.00) (48.00) (47.34)
35-50 52 25 25 24 126
Years
(41.60) (33.30) (50.00) (48.00) (42.00)
50-60 2 13 7 2 24
Years
(1.60) (17.30) (14.00) (4.00) (8.000
>60 Years 1 2 5 - 8
(0.80) (2.70) (10.00) (2.66)
Total 125 75 50 50 300
(100.00) (100.00) (100.00) (100.00) (100.00)
Educational Qualification
The frequency distribution of educational qualifications of the respondents
in Tamil Nadu has been analyzed and the results are presented in Table 4.3.
The results indicate that about 54.00 per cent are graduates followed by,
school educated (25.67 per cent), post-graduates (15.00 per cent) and
professionals (5.33 per cent).
160
Table 4.3 Frequency Distribution of Educational Qualifications of the
Respondents
Educational Chennai Coimbatore Madurai Trichy Tamil Nadu
Qualification
School 45 9 15 8 77
(36.00) (12.00) (30.00) (16.00) (25.67)
Graduation 63 37 24 38 162
(50.40) (49.30) (48.00) (76.00) (54.00)
Post- 12 23 6 4 45
Graduation (9.60) (30.70) (12.00) (8.00) (15.00)
Profession 5 6 5 - 16
(4.00) (8.00) (10.00) (5.33)
Total 125 75 50 50 300
(100.00) (100.00) (100.00) (100.00) (100.00)
The number of respondents of school educated varies from 45
in Chennai to 8 in Trichy whereas the graduates range from 63 in Chennai to
24 in Madurai. The number of post graduates range from 23 in Coimbatore
to 4 in Trichy whereas the professionals vary from 6 in Coimbatore to 5 each
in both Chennai and Madurai.
Occupation
The frequency distribution of occupation of the respondents in Tamil
Nadu has been analyzed and the results are presented in Table 4.4. From the
table, it is clear that about 43.33 per cent are having own business followed
by the private (19.33 per cent), home makers(11.67 per cent), employees in
multi-national corporation(7.67 per cent), professionals(6.00 per cent),
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students (5.66 per cent), government employees (4.67 per cent) and
pensioners(1.67 per cent).
Table 4.4 Frequency Distribution of Occupation of the Respondents
Occupation Chennai Coimbatore Madurai Trichy Tamil Nadu

Own Business 83 18 16 13 130
(66.40) (24.00) (32.00) (26.00) (43.33)
Profession 9 - 18
1 8
(18.00)
(0.8) (10.70) (6.00)
Government 2 4 4 4 14
(1.60) (5.30) (8.00) (8.00) (4.67)
Private 24 29 4 1 58
(19.20) (38.70) (8.00) (2.00) (19.33)
Multi-National 9 10 3 1 23
Corporation (7.20) (13.30) (6.00) (2.00) (7.67)
Pensioner 2 - 3 - 5
(1.60) (6.00) (1.67)
Home Maker 1 1 7 26 35
(0.80) (1.30) (14.00) (52.00) (11.67)
Student 5 17
3 5 4
(2.40) (6.70) (8.00) (10.00) (5.66)
Total 125 75 50 50 300

(100.00) (100.00) (100.00) (100.00) (100.00)
The number of respondents owning business is ranging from 83
in Chennai to 13 in Trichy while the number of professionals varies from 9
in Madurai to 1 in Chennai. The number of the employed in government
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service varies from 4 at Coimbatore, Madurai and Trichy to 2 in Chennai
while the number of those in private services vary from 29 in Coimbatore to
1 in Trichy.
The employees in multi-national corporations are 10 in Coimbatore
but 1 in Trichy while the pensioners are 3 in Madurai compared to 2 in
Chennai. The home makers are the highest in Trichy (26) and lowest in
Chennai and Coimbatore(1). The students are maximum in Coimbatore and
Trichy(5) and minimum in Chennai(3).
Annual Income
Table 4.5 Frequency Distribution of Annual Income of Respondents

Income Chennai Coimbatore Madurai Trichy Tamil Nadu
(Rs in Lakh)
<1.2. 5 3 2 21 31
(4.00) (4.00) (4.00) (42.00) (10.33)
1.20-3.00 52 30 15 22 119
(41.60) (40.00) (30.00) (44.00) (39.37)
3.01-5.00 55 33 27 5 120
(44.00) (44.00) (54.00) (10.00) (40.00)
> 5.00 30
13 9 6 2
(10.40) (12.00) (12.00) (4.00) (10.00)
Total 125 75 50 50 300

(100.00) (100.00) (100.00) (100.00) (100.00)
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The frequency distribution of the income of the respondents in Tamil
Nadu is put to analysis and the results are given in Table 4.5. From the
results, it is apparent that about 40.00 per cent belong to the income group of
Rs. 3.10-5.00 lakh followed by Rs. 1.20-3.00 lakh income-group (39.37per
cent), people with less than Rs.1.20 lakh annual income (10.33 per cent) and
those with more than Rs. 5.00 lakh annual income form (10.00 per cent).
The number of respondents belonging to the income group of Rs.less
than 1.20 lakh ranges from 21 in Trichy to 2 in Madurai while the income
group of Rs. 1.20-3.00 lakh varies from 52 in Chennai to 15 in Madurai.
The income group of Rs.3.01-5.00 lakh varies from 55 in Chennai to 5 in
Trichy, while the number of people in the income group of more than Rs.
5.00 lakh decreases from 13 in Chennai to 2 in Trichy.
Family Cycle
The frequency distribution of family cycle of respondents in Tamil
Nadu has been analyzed and the results are presented in Table 4.6. It is
inferred that about 38.00 per cent are married with children- joint family,
followed by the married with children-nuclear family form (24.00 per cent),
the married (21.00 per cent) and finally the bachelors make (17.00 per
cent).The bachelor/ spinster ranges from 29 in Coimbatore to 5 in Trichy
while married number varies from 46 in Chennai to 2 in Madurai. The
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number of the married with children-nuclear family varies from 29 in
Coimbatore to 7 in Chennai and that of the married with children-joint
family ranges from 63 in Chennai to 9 in Coimbatore.
Table 4.6 Frequency Distribution of Family Cycle of Respondents
Family Cycle Chennai Coimbatore Madurai Trichy Tamil

Nadu
Bachelor/ 9 29 8 5 51
Spinster (7.20) (38.70) (16.00) (10.00) (17.00)
Married 46 8 2 7 63
(36.80) (10.70) (4.00) (14.00) (21.00)
Married with 72
7 29 21 15
Children-
(5.60) (38.70) (42.00) (30.00) (24.00)
Nuclear
Married with 63 9 19 23 114
Children-Joint (50.40) (12.00) (38.00) (46.00) (38.00)
Total 125 75 50 50 300
(100.00) (100.00) (100.00) (100.00) (100.00)
Ownership of Assets
The frequency distribution of ownership of assets in Tamil Nadu has
been analyzed and the results are presented in Table 4.7. It is inferred that
about 98.34 per cent own both ATM card and Credit and Debit card
followed by two wheeler owners making up (95.34 per cent), house/flat
owners come up to (57.33 per cent), car owners have (48.33 per cent) lap
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toppers reach (45.00 per cent), and those using the passport have
only(33.33 per cent).
Table 4.7 Frequency Distribution of Ownership of Assets of

Respondents
Assets Chennai Coimbatore Madurai Trichy Tamil

Nadu
Own House/Flat 75 50 25 22 172
(60.00) (73.33) (50.00) (44.00) (57.33)
Two Wheeler 120 75 45 46 286
(96.00) (100.00) (90.00) (92.00) (95.34)
Car 75 20 30 20 145
(60.00) (33.33) (60.00) (40.00) (48.33)
ATM Card 125 75 45 50 295
(100.00) (100.00) (90.00) (100.00) (98.34)
Credit and Debit 125 75 45 50 295
Card (100.00) (100.00) (90.00) (100.00) (98.34)
Laptop 75 20 20 20 135
(60.00) (33.33) (40.00) (40.00) (45.00)
Passport 20 10 100
50 20
(33.33) (20.00) (33.33)
(40.00) (40.00)
The ownership of house/flat varies from 75 in Chennai to 22 in
Trichy while the ownership of two wheeler ranges from 120 in Chennai to
45 in Madurai. The ownership of car moves from 75 in Chennai to 20 in
both Trichy and Coimbatore while both ATM and Credit and Debit card
ownership changes between 125 in Chennai and 45 in Madurai. The
ownership of laptop ranges from 75 in Chennai to 20 in Coimbatore,
166
Madurai and Trichy while the ownership of passport varies between 50 in
Chennai and 10 in Madurai .
Mobility
Table 4.8 Frequency Distribution of the Mobility of the Respondents
Sources of Chennai Coimbatore Madurai Trichy Tamil

Mobility Nadu
Two Wheeler 88 41 11 46 186
(70.40) (54.70) (22.00) (92.00) (62.00)
Car 20 - 14 3 37
(16.00) (28.00) (6.00) (12.33)
Auto - 33 9 - 42
(44.00) (18.00) (14.00)
Public Transport 15 - 14 - 29
(12.00) (28.00) (9.67)
Walk 2 1 2 1 6
(1.60) (1.30) (4.00) (2.00) (2.00)
Total 125 75 50 50 300
(100.00) (100.00) (100.00) (100.00) (100.00)
The frequency distribution of the mobility of the respondents in Tamil
Nadu has been analyzed and the results are presented in Table 4.8. It is
observed that about 62.00 per cent of respondents are using two wheelers for
their mobility followed by auto users with (14.00 per cent), car users form
(12.33 per cent), and public transport has (9.67 per cent) and those who walk
make a poor (2.00 per cent). The percentage of two wheeler as a source of
167
mobility is only from 88 in Chennai and 11 in Madurai while the mobility by
car varies from 20 in Chennai to 3 in Trichy. The percentage of the auto
users ranges from 33 in Coimbatore to 9 in Madurai, while percentage of
commuters by public transport vary from 15 in Chennai to 14 in Madurai
and the percentage of walkers vary from 2 in both Chennai and Madurai to
1 in both Coimbatore and Trichy.
There are significant differences in the profile of the customers in the
organized supermarkets.
Shopping pattern and Behavior:
The consumer shopping pattern and behavior are studied with variables such
as Shopping Frequency, Preferred shopping days, Travel distance, Time
spent for shopping, and Money Spent as discussed below.
Shopping Frequency
The frequency distribution of shopping frequency of the respondents in
Tamil Nadu has been analyzed and the results are presented in Table 4.9.
The results show that about 34.00 per cent of respondents shop fortnightly
once followed by weekly once shoppers come up to (24.67 per cent),
monthly once shoppers have (23.33 per cent), occasional shoppers who
make only (11.00 per cent), twice a week shoppers have (6.67 per cent), and
the daily shoppers in a meager percentage of (0.33 per cent).
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Table 4.9.Frequency Distribution of shopping frequency of Respondents
‘Shopping Chennai Coimbatore Madurai Trichy Tamil
Frequency’ Nadu
Daily - - 1 1
(2.00) (0.33)
Twice a Week 1 1 3 15 20
(0.80) (1.30) (6.00) (30.00) (6.67)
Weekly Once 21 13 8 32 74
(16.80) (17.40) (16.00) (64.00) (24.67)
Fortnightly Once 4 - 102
74 24
(8.00)
(59.20) (32.00) (34.00)
Monthly Once 16 33 20 1 70
(12.80) (44.00) (40.00) (2.00) (23.33)
Occasional 13 4 15 1 33
(10.40) (5.30) (30.00) (2.00) (11.00)
Total 125 75 50 50 300
(100.00) (100.00) (100.00) (100.00) (100.00)
The daily shopper is 1 in Trichy, twice a week shoppers vary
from 15 in Trichy to 1 in both Chennai and Coimbatore. The weekly once
shoppers range from 32 in Trichy to 8 in Madurai while fortnightly once
shoppers range from 74 in Chennai to 4 in Madurai. The monthly once
shoppers vary between 33 in Coimbatore and 1 in Trichy and occasional
shoppers range between 13 in Chennai and one in Trichy.
Shopping Days
The frequency distribution of Shopping days of the respondents in
Tamil Nadu has been analyzed and the results are presented in Table 4.10. It
169
is observed that about 48.67 per cent shop during weekends followed by
those who shop on both weekdays and weekends making up (38.33 per cent)
while weekdays shoppers reach only (13.00 per cent). The number of
shoppers in weekdays varies from 30 in Coimbatore to 1 in Chennai while
weekend shoppers come up to 67 in Chennai to 17 in Madurai and shopping
in both weekends and weekdays vary between 57 in Chennai to 14 in
Coimbatore.
Table 4.10 Frequency Distribution of ‘Shopping Days’ of Respondents
‘Shopping Days’ Chennai Coimbatore Madurai Trichy Tamil

Nadu
Weekdays 1 30 5 3 39
(0.80) (40.00) (10.00) (6.00) (13.00)
Weekends 67 31 17 31 146
(53.60) (41.30) (34.00) (62.00) (48.67)
Both 57 14 28 16 115
(45.60) (18.70) (56.00) (32.00) (38.33)
Total 125 75 50 50 300
(100.00) (100.00) (100.00) (100.00) (100.000)
Travel Distance
The frequency distribution of distance traveled by respondents in
Tamil Nadu has been analyzed and the results are presented in Table 4.11. It
is clear from the table that about 41.33 per cent travel the distance of 3.01-
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5.00 Km for shopping, followed by 1.00-3.00 Km travelers with (28.33 per
cent), 3.01-5.00 Km travelers form (39.33 per cent), but more than 5 Km
travelers have (19.33 per cent) and those who travel less than one Km
constitute only(11.00 per cent).
The number of respondents who travel less than one Km vary from 22
in Coimbatore to 11 in Madurai while the distance of 1.00-3.00 Km is
traveled by 42 in Trichy and five in Chennai. The distance of 3.01- 5.00 Km
is covered by 72 in Chennai and 8 in Trichy while the distance of more than
5KM travelers range between 48 in Chennai and 3 in Madurai.
Table 4.11 Frequency Distribution of Distance Traveled by Respondents

Distance(Km) Chennai Coimbatore Madurai Trichy Tamil
Nadu
<1.00 - 22 11 - 33
(29.30) (22.00) (11.00)
1.00-3.00 5 17 21 42 85
(4.00) (22.70) (42.00) (84.00) (28.33)
3.01-5.00 72 29 15 8 124
(57.60) (38.70) (30.00) (16.00) (41.34)
>5.00 48 7 3 - 58
(38.40) (9.30) (6.00) (19.33)
Total 50 50 300
125 75
(100.00) (100.00) (100.000
(100.00) (100.00)
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Time Spent
The frequency distribution of time spent for shopping by respondents
in Tamil Nadu has been analyzed and the results are presented in Table 4.12.
The results indicate that about 46.00 per cent spend 2.01-4.00 hours for
shopping followed by those spend 1.00-2.00 hours making (35.00 per cent),
more than four hours shoppers reach (11.67 per cent) and less than one hour
shoppers has only (7.33 per cent).
Table 4.12 Frequency Distribution of Time Spent by Respondents
Time Chennai Coimbatore Madurai Trichy Tamil

Spent(Hrs) Nadu
<1.00 - 5 17 - 22
(6.70) (34.00) (7.33)
1.00-2.00 8 43 14 40 105
(6.40) (57.30) (28.00) (80.00) (35.00)
2.01-4.00 84 25 19 10 138
(67.20) (33.30) (38.00) (20.00) (46.00)
>4.00 33 2 - 35
-
(26.40) (2.70) (11.67)
Total 125 75 50 50 300
(100.00) (100.00) (100.00) (100.00) (100.00)
The time spent for shopping of less than one hour varies from 17 in
Madurai to 5 in Coimbatore, while the time spent by 1.00-2.00 hours
shoppers ranges from 43 in Coimbatore to 8 in Chennai. The 2.01-4.00
hours duration shoppers range from 84 in Chennai to 10 in Trichy and for
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those with more than four hours shopping vary from 33 in Chennai to 2 in
Coimbatore.
Money Spent
The frequency distribution of ‘money spent’ by the respondents in
Tamil Nadu has been analyzed and the results are presented in Table 4.13.
From the table, it is inferred that about 38.67 per cent are shopping for about
Rs.2001-3500 followed by those who spend Rs.3501-5000 come about
(24.33 per cent), ‘Rs. 501-1000-shoppers’(16.33 per cent), the next category
is those who shop Rs. 1001-2000 (9.00 per cent), ‘Rs.5001-10000-
shoppers’(7.67 per cent), they are followed by those who spend more than
Rs.10000(3. 33 per cent) and the last , those who spend less than
Rs. 500(0.67 per cent).
The table shows that less than Rs. 500 shoppers are 2 in Trichy but in
Madurai only 1 seems to afford to spend more than Rs. 10000. In the bracket
of Rs 501-1000 there are 42 in Trichy but only 2 in both Chennai and
Madurai , whereas Rs. 1001-2000 shoppers are 19 in Coimbatore compared
to 1 in Chennai. The number of Rs. 2001-3500 shoppers range from 50 in
Chennai to 6 in Trichy. The shoppers in the category of Rs. 3501-5000 vary
between 49 in Chennai and 7 in Madurai . In the last category of ‘Rs. 5001-
10000-shoppers’ Chennai has 17 against 1 in Madurai.
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Table 4.13 Frequency Distribution of Money Spent per visit by the
Respondents
Money Spent Chennai Coimbatore Madurai Trichy Tamil

per visit (Rs) Nadu
< 500 - - - 2 2
(4.000 (0.67)
501-1000 42 49
2 3 2
(84.00) (16.33)
(1.60) (4.00) (4.00)
1001-2000 1 19 7 - 27
(0.80) (25.30) (14.00) (9.00)
2001-3500 50 30 30 6 116
(40.00) (40.00) (60.00) (12.00) (38.67)
3501-5000 49 17 7 - 73
(39.20) (22.70) (14.00) (24.33)
5001-10000 17 5 1 - 23
(13.60) (6.70) (2.00) (7.67)
>10000 6 1 3 - 10
(4.80) (1.30) (6.00) (3.33)
Total 125 75 50 50 300
(100.00) (100.00) (100.00) (100.00) (100.00)
Ranking of the Supermarkets shopped by the Respondents
The ranking of the Supermarkets shopped by the respondents in Tamil
Nadu is analyzed and the results are presented in Table 4.14. The results
show that Nilgiris is the most shopped by the respondents followed by
Reliance Fresh, Subhiksha and More in Tamil Nadu.
In Chennai, Nilgiris is the most shopped by the respondents followed
by Reliance Fresh, More and Subhiksha. In Coimbatore, Nilgiris is the most
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shopped by the respondents followed by Reliance Fresh, Subhiksha and
More.
In Madurai, Reliance Fresh is the most shopped by the respondents
followed by More, Nilgiris and Subhiksha, while in Trichy, Nilgiris is the
most shopped by the respondents followed by Subhiksha, Reliance Fresh,
and More.
In the ranking, Nilgiris has the place of pride with three cities
crediting it with the first rank and one third rank in Madurai alone. Nilgiris,
being a more-than-a century supermarket, might have grown into a power
symbol of effective shopping experience. Of course, it must have also
developed ambience and service-quality, keeping itself alert to customers’
responses.
A very close competitor to Nilgiris, is Reliance Fresh which is
certainly not as old as Nilgiris. But, its aggressive marketing and rapid
expansion have attracted the attention of the customers. Careful Pricing and
promotion efforts through discounts and bonus in coupons to customers have
paid rich dividends to their marketing strategies.
175
Table 4.14 Ranking of the Supermarkets shopped by the Respondents
Store Chennai Coimbatore Madurai Trichy Tamil Nadu

Name Mean Status Mean Status Mean Status Mean Status Mean Status
Rank Rank Rank Rank Rank
Nilgiris I
9.26 I 7.95 I 5.80 III 5.82 I 7.21
Reliance II
Fresh 9.06 II 7.16 II 6.19 I 5.22 III 6.91
Subhiksha 6.86 IV 6.24 III 5.75 IV 5.72 II 6.14 III
More 7.51 III 4.85 IV 5.97 II 5.20 IV 5.88 IV
176
Table.4.15. Preference of Supermarkets by the Respondents
Store Chennai Coimbatore Madurai Trichy Tamil Nadu

Name Mean Status Mean Status Mean Status Mean Status Mean Status
Rank Rank Rank Rank Rank
Nilgiris HP HP P P
9.89 9.42 8.40 5.64 NP 8.34
Subhiksha 9.34 HP 8.64 P 7.60 LP 6.60 VLP 8.05 P
Reliance HP HP P VLP P
Fresh 9.64 9.04 8.00 6.14 8.21
More 7.72 LP 5.72 NP 4.80 NP 4.52 NP 5.69 VLP
Note: HP=Highly Preferred P=Prefered LP=Less Preferred VLP=Very Less Preferred NP=Not Preferred
177
Preference of the Supermarkets
The preference of the Supermarkets by the respondents in Tamil Nadu is
analyzed and the results are presented in Table 4.15. The results show that
Nilgiris, Reliance Fresh, and Subhiksha are preferred by the customers in
Tamil Nadu.
In Chennai, Nilgiris, Reliance Fresh and Subhiksha are highly preferred while
in Coimbatore, Nilgiris and Reliance Fresh are highly preferred while
Subhiksha is preferred. In Madurai, Nilgiris and Reliance Fresh are preferred
while in Trichy , no supermarket is preferred by the customers.
In the Preference-Scale by the respondents, Reliance Fresh has a little
edge over Nilgiris which has the negative ‘NP-not preferred’ compared with
‘VLP- very less preferred’ of Reliance Fresh. The preference of the Trichy
respondents does not go on the positive side, beyond ‘very less preferred’. It is
interesting to note the implication that Trichy respondents do not attach much
significance to shops and shopping.
There are significant differences in the preference level of the customers
in the organized supermarkets.
178
Buying Influence
The influence on respondents’ buying in Tamil Nadu has been analyzed
and the results are presented in Table 4.16. The results indicate that about
29.67 per cent of the respondents are influenced by advertisements followed by
the other sources of influence such as spouse (21.00 per cent), friends and
relatives (19.00 per cent), sales promotions (11.00 per cent), children (9.33 per
cent), sales persons (5.00 per cent) and co-buyer (5.00 per cent).
The number of respondents influenced by the spouse varies from 39 in
Coimbatore to 4 in Madurai while the children seem to influence only 23 in
Chennai to 5 in Madurai. The influence of friends and relatives can have only
22 in Chennai to its credit with 2 in Madurai, while those influenced by
advertisements 33 in Chennai and 14 in Coimbatore. The influence of sales
promotions has 21 in Chennai and 2 in Trichy while that of sales persons range
from 4 in Coimbatore, Madurai and Trichy to 3 in Chennai. The number of
respondents under co-buyer’s influence differs from 9 in Chennai to 6 in
Madurai.
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Table 4.16 Frequency Distribution of Buying Influence on Respondents
Buying Chennai Coimbatore Madurai Trichy Tamil
Influence Nadu
Spouse 14 39 4 6 63
(11.20) (52.00) (8.00) (12.00) (21.00)
Children 23 5 28
- -
(18.40) (10.00) (9.33)
Friends and 22 18 2 15 57
Relatives (17.60) (24.00) (4.00) (30.00) (19.00)
Advertisement 33 14 19 23 89
(26.40) (18.70) (38.00) (46.00) (29.67)
Sales Promotions 21 10 2 33
-
(16.80) (20.00) (4.00) (11.00)
Sales Persons 3 4 4 4 15
(2.40) (5.30) (8.00) (8.00) (5.00)
Co-Buyer 9 - 6 -- 15
(7.20) (12.00) (5.00)
Total 125 75 50 50 300
(100.00) (100.00) (100.00) (100.00) (100.00)
Satisfaction Level of Customers in Supermarkets
The satisfaction level of customers in supermarkets has been analyzed
by computing weighted mean score and the results are presented in Table
4.17. The mean score of the satisfaction level of customers in Nilgiris in
Tamil Nadu indicates quality of membership, value for money , availability
of premium brands, variety of products, location, retail brand image, sales
promotion-gifts, coupon etc, membership and loyalty cards, services,
response to customers, ambience, parking space, layout of the store,
availability of private labels, children play area, quality of the sales person,
180
window display, co-shoppers status, billing speed and credit card services
are at ‘satisfied’ by the customers while for Reliance Fresh, , availability of
premium brands, variety of products, membership and loyalty cards,
services, ambience, parking space, layout of the store, quality of the sales
person, window display, co-shoppers status and billing speed are at ‘neither
satisfied nor dissatisfied’ and with the rest of the attributes the customers
are satisfied .
At Nilgiris in Chennai, the attributes like the quality of merchandise,
value for money and quality of the sales person are found at ‘highly
satisfied’ level; the rest of the attributes are classed under ‘satisfied’. For
Reliance Fresh, quality of merchandise is ‘highly satisfied’ while
membership and loyalty cards, response to customers , ambience, quality of
the sales person and window display are ranked as ‘neither satisfied nor
dissatisfied’ with the rest of attributes being at ‘satisfied’.
For the Nilgiris of Coimbatore, the attribute of co-shoppers status
obtains ‘highly satisfied’ rank; location attracts ‘neither satisfied nor
dissatisfied’ response and the rest of the attributes come up to ‘satisfied’
level. For Reliance Fresh, quality of merchandise, value for money,
availability of premium brands, variety of products, retail brand image, sales
promotion-gifts, coupon etc, membership and loyalty cards, response to
181
customers and availability of private labels are satisfied and the rest of
attributes are neither satisfied nor dissatisfied with the customers.
In Madurai, for Reliance Fresh, location is highly satisfied while
quality of merchandise, value for money, retail brand image, sales
promotion-gifts, coupon etc, services, response to customers, layout of the
store, availability of private labels, window display, billing speed and credit
card services are looked upon as ‘satisfied’ and the rest of the attributes are
described as ‘neither satisfied nor dissatisfied’ by the customers. For
Nilgiris, all the attributes are in the category of ‘satisfied’ except layout of
the store which is at ‘neither satisfied nor dissatisfied’ with the customers.
In Trichy, for Reliance Fresh, service, quality of the sales person and
credit card services are negatived as ‘dissatisfied’ while the quality of
merchandise , value for money , retail brand image, sales promotion-gifts,
coupon etc, response to customers are positively considered as ‘satisfied’ ;
the rest of attributes are generally placed as ‘neither satisfied nor
dissatisfied’ by the customers. For Nilgiris, value for money, children play
area, window display and credit card services are at ‘neither satisfied nor
dissatisfied’ with the customers.
There are significant differences in the satisfaction level of customers
in the organized supermarkets.
182
Table 4.17 Satisfaction Level of Customers in Supermarkets-Weighted Mean Score
Chennai Coimbatore Madurai Trichy Tamil Nadu

Attributes Nilgiris Reliance Nilgiris Reliance Reliance Nilgiris Reliance Nilgiris Nilgiris Reliance
Fresh Fresh Fresh Fresh Fresh
Quality of Merchandise 4.83 4.80 4.03 4.06 4.33 4.00 3.83 3.75 4.15 4.26
(HS) (HS) (S) (S) (S) (S) (S) (S) (S) (S)
Value for Money Pricing 4.60 4.43 4.03 4.06 3.67 4.00 3.58 3.08 3.93 3.94
(HS) (S) (S) (S) (S) (S) (S) (N) (S) (S)
Availability of Premium 3.86 3.83 3.97 3.75 3.50 4.25 2.92 4.00 4.02 3.50
Brands (S) (S) (S) (S) (N) (S) (N) (S) (S) (N)
Variety of Products 3.66 3.84 3.69 3.63 2.83 4.00 2.58 4.42 3.94 3.22
(S) (S) (S) (S) (N)` (S) (N) (S) (S) (N)
Location 3.85 3.02 3.34 3.44 4.67 4.00 3.08 3.58 3.69 3.56
(S) (S) (N) (N) (HS) (S) (N)` (S) (S) (S)
Retailer Brand Image 3.95 3.84 3.90 3.88 3.67 3.75 3.92 4.00 3.90 3.83
(S) (S)` (S) (S) (S) (S) (S) (S) (S) (S)
Sales Promotion-gifts, 4.44 3.88 3.97 4.13 3.83 3.75 3.75 4.08 4.06 3.90
coupon etc (S) (S)` (S) (S) (S) (S) (S) (S) (S) (S)
Membership and Loyalty 4.24 3.23 3.90 3.69 3.17 3.85 2.92 4.00 4.00 3.25
Cards (S) (N) (S)` (S) (N) (S) (N) (S) (S) (N)
Services 3.74 4.33 3.66 3.38 3.83 4.00 2.08 3.75 3.79 3.41
(S) (S)` (S)` (N) (S) (S) (DS) (S) (S) (N)
Customer Response 3.94 2.83 3.59 3.81 4.00 4.50 4.42 3.75 3.95 3.77
(S) (N) (S) (S) (S) (S)` (S) (S) (S) (S)
Ambience 3.86 3.40 3.45 3.50 3.00 4.00 3.33 3.58 3.79 3.31
(S)` (N) (S) (N)` (N) (S) (N) (S) (S) (N)
Parking Space 4.37 4.27 3.68 3.25 3.17 3.60 3.00 3.83 3.79 3.42
(S) (S) (S) (N) (N) (S) (N) (S) (S) (N)
Layout of Store 4.20 3.87 3.59 2.94 3.83 3.00 3.42 3.50 3.87 3.52
183
(S) (S) (S) (N) (S) (N) (N) (S) (N)
Availability of Private 4.48 3.87 4.28 3.56 3.83 4.00 3.25 3.75 3.57 3.63
Labels (S) (S) (S) (S) (S)` (S) (N) (S) (S) (S)
Children Play Area 4.33 4.40 4.03 3.50 3.17 3.75 3.25 2.92 3.76 3.58
(S) (S) (S)` (N)` (N)` (S)` (N)` (N) (S) (S)
Quality Sales Person 4.81 2.88 4.10 3.25 3.50 3.75 2.00 3.67 4.08 2.91
(HS) (N) (S) (N)` (N)` (S) (DS) (S) (S) (N)
Window Display 4.20 3.37 4.31 3.25 3.83 4.25 2.92 3.40 4.04 3.34
(S) (N) (S) (N)` (S) (S) (N) (N) (S) (N)
Co-Shoppers Status 4.40 4.00 4.69 3.38 3.00 3.80 3.08 3.56 4.11 3.37
(S) (S) (HS) (N)` (N) (S) (N) (S) (S) (N)
Billing Speed 4.20 3.90 4.24 3.25 4.17 3.75 2.67 3.58 3.94 3.50
(S) (S) (S) (N) (S) (S) (N) (S) (S) (N)
Credit Card Services 2.42 3.95
4.42 4.20 4.45 2.94 4.00 4.00 (DS) 2.92 (S) 3.39
(S) (S) (S) (N) (S) (S) (N) (N)
Note: The letters in the parenthesis indicates the status.
HS=Highly Satisfied S= Satisfied N=neither satisfied nor dissatisfied DS=Dissatisfied
184
Customers’ Perception on Supermarkets
The perception of the customers on supermarkets is analyzed by
working out weighted mean score and the results are presented in Table
4.18. The mean score of the perception of the customers in Nilgiris in Tamil
Nadu indicates that they ‘agreed’ that the merchandise sold are of higher
quality, the merchandise sold there offers good value for money, they are
satisfied with the merchandise they buy, the store is conveniently located,
ample parking space is provided, store ambience and decor are appealing,
locating products are easier, and the customers are influenced by the various
promotions run by the store. For the three attributes ‘I am satisfied with the
price for what I bought’, ‘I am satisfied with the lighting arrangements’, ‘I
am satisfied with the customer service’ the customers’ perception is at
‘neither agreed nor disagreed’.
The perceptions of customers on Reliance Fresh in Tamil Nadu
indicate that the merchandise sold are of higher quality, the merchandise
sold there offers good value for money, the store is conveniently located,
ample parking space is provided, store ambience and decor are appealing,
locating products are easier, they are satisfied with the lighting arrangements
and they are satisfied with the customer service and they are influenced by
the various promotions run by the store are at ‘agreed’ by the customers.
185
Besides, ‘I am satisfied with the merchandise I bought’, and ‘I am satisfied
with the price for what I bought’ are ranked as ‘neither agreed nor disagreed’
with the customers.
As for the Nilgiris in Chennai is concerned, it is surprising to note that
the two of the most significant aspects of business marketing namely Price
and Customer service, the customers have expressed dissatisfaction. So the
relevant attributes, ‘I am satisfied with the price for what I bought’, and ‘I
am satisfied with the customer services’ are classed under ‘disagreed’. The
‘agreed’ attributes are, ‘the merchandise sold are of higher quality’, and ‘the
merchandise sold there offers good value for money’. For Reliance Fresh,
the merchandise sold is of higher quality is ‘strongly agreed’ while ‘I am
satisfied with the price for what I bought’ is at ‘disagreed’. ‘I am satisfied
with the merchandise I bought’ and the store being conveniently located are
‘neither agreed nor disagreed’ and the rest of the attributes are agreed by the
customers.
For Nilgiris in Coimbatore, all the attributes are at ‘agreed’ by the
customers. For Reliance Fresh the attributes, ‘I am satisfied with the
merchandise I bought’, and ‘store ambience and décor are appealing’ attract
neutral remarks of ‘neither agreed nor disagreed’ and for the rest of the
attributes the customers ranking is ‘agreed’.
186
In Madurai, all the attributes are at ‘agreed’ by the customers
excepting the attributes that ‘ I am satisfied with the merchandise I bought’,
‘the store Is conveniently located’, and ‘I am satisfied with the lighting
arrangements’ being placed at ‘neither agreed nor disagreed’ by the
customers for Reliance Fresh. For Nilgiris, all the attributes are at ‘agreed’
while ‘the merchandise sold there offers good value for money’ is ‘strongly
agreed’ by the customers.
In Trichy, at Reliance Fresh all the attributes are at ‘ neither agreed
nor disagreed’ with customers excepting that, ‘the merchandise sold are of
higher quality’, ‘the store is conveniently located’ and ‘I am influenced by
the various promotions run by the store’ which they consider as ‘agreed’.
For Nilgiris, all the attributes are at ‘agreed’ excepting the attributes of ‘ I
am satisfied with the price for what I bought’, ‘I am satisfied with the
merchandise I bought’ and ‘the store is conveniently located’ which reach
at ‘neither agreed nor disagreed’ stand with the customers.
187
Table 4.18 Customers’ Perception on Supermarkets-Weighted Mean Score
Attributes Chennai Coimbatore Madurai Trichy Tamil Nadu

Nilgiris Reliance Nilgiris Reliance Reliance Nilgiris Reliance Nilgiris Nilgiris Reliance
Fresh Fresh Fresh Fresh Fresh
The merchandise sold is of higher 4.25 4.76 4.03 4.00 4.33 4.00 3.81 3.67 3.99 4.22
quality (A) (SA) (A) (A) (A) (A) (A) (A) (A) (A)
The merchandise sold here offers 3.98 4.06 3.86 4.06 4.33 4.67 3.25 3.67 4.05 3.93
good value for money (A) (A) (A) (A) (A)` (SA) (N) (A) (A) (A)
I am satisfied with he 2.46 2.54 3.66 3.50 3.67 4.00 2.56 4.25 3.59 3.18
merchandise I bought (N) (N) (A) (N) (A) (A) (N) (A) (A) (N)
I am satisfied with the price for 1.35 1.65 3.72 3.81 3.17 4.50 3.13 3.75 3.33 2.94
what I bought (DA) (DA) (A) (A) (N) (A) (N) (A) (N) (N)
The store is conveniently located 2.89 3.67 3.66 4.13 3.33 3.67 3.81 4.00 3.56 3.70
(N) (A) (A) (A) (N) (A) (A) (A) (A) (A)
Ample parking space is provided 3.45 3.20 3.79 4.44 3.83 4.00 2.94 3.67 3.73 3.60
(N) (N) (A) (A) (A) (A) (N) (A) (A) (A)
Store ambience and décor are 3.21 3.85 3.90 3.54 4.50 4.50 3.38 4.50 4.03 3.82
appealing (N) (A) (A) (N) (A) (A) (N) (A) (A) (A)
Locating products is easier 2.92 4.45 3.79 3.88 4.17 4.17 3.31 4.00 3.72 3.95
(N) (A) (A) (A) (A) (A) (N) (A) (A) (A)
I am satisfied with the lighting 3.24 4.20 3.69 4.13 3.50 4.50 2.69 2.58 3.50 3.63
arrangements (N) (A) (A) (A) (N) (A) (N) (N) (N) (A)
I am satisfied with the customer 2.43 3.85 4.10 4.31 4.33 4.50 3.19 2.67 3.43 3.92
service (DA) (A) (A) (A) (A) (A) (N) (N) (N) (A)
I am influenced by the various 3.46 4.05 4.14 4.31 4.33 4.17 3.81 2.83 3.65 4.13
promotions run by the store (N) (A) (A) (A) (A) (A) (A) (N) (A) (A)
Note: The letters in the parenthesis indicates the status.
SA= Strongly Agree A=Agree N=neither agree nor disagree DA=Disagree
188
Factors Determining the Consumers’ Choice of Supermarkets in
Chennai
In order to identify the factors determining the consumer’s choice of
supermarkets in Chennai, factor analysis (principal component analysis) is
carried out on 20 variables with Eigen value greater than one and the results
are presented in Table 4.19. There are five independent groups of
dimensions which are extracted accounting for a total of 65.09 per cent of
variations on 20 attributes. Each of the five factors contributes to 20.11 per
cent, 17.01 per cent, 13.85 per cent, 7.48 per cent, and 6.63 per cent
respectively.
Factor-I: Out of 20 variables, five dimensions have their high, relatively
tightly grouped factor loadings on factor-I. These variables are retailer’s
brand image, membership and loyalty cards, services, response to customers
and ambience. These five variables together are named as “CUSTOMER
FOCUS”.
Factor-II: This factor is formed with sales promotions-gifts, coupon etc,
quality of the sales person, window display, co-shoppers status, billing speed
189
and credit card services. These variables are named as “PROMOTION AND
PERSONALITY”.
Factor-III: This factor includes availability of parking space, layout of the
store, and availability of private labels and children play area. These
variables are named as “LAYOUT AND PRIVATE LABELS”.
Factor-IV: This factor is formed with ‘value for money’ and value of
products. These variables are named as “VALUE”.
Factor-V: This factor is formed with quality of merchandise and this
variable is named as “MERCHANDISE QUALITY”.
Chennai respondents emphasize ‘Customer Focus’ as the main factor
in any growing business. They seem to lay great importance on loyalty cards
and ambience. Next to customer focus comes ‘promotion and personality’.
Of course, any promotional campaign directly addresses the interests,
particularly the financial interests of the customers. Value for money and
value of the products fall to fourth factor; we can understand that where
customer focus dominates business transactions, there value for money and
of the products must have already been taken into consideration. Very
strange, the Chennai respondents place ‘quality of merchandise’ at the fifth
grade.
190
Table 4.19 Factors Determining the Consumers’ Choice of
Supermarkets in Chennai- Factor Analysis
Attributes Rotated Factors Loadings on
Factor-I Factor-II Factor-III Factor-IV Factor-V
Quality of Merchandise -.066 .133 -.031 .133 .869
Value for Money Pricing -.013 .070 .156 .803 .212
Availability of Premium Brands .478 .282 .262 .129 .463
Variety of Products .417 .167 .345 .508 -.035
Location .496 .464 .247 -.173 .029
Retailer Brand Image .550 .291 .441 .267 .135
Sales Promotion-gifts, coupon etc .329 .611 .074 .272 -.110
Membership and Loyalty Cards .569 .402 .015 .317 -.232
Services .776 .282 -.013 .161 -.138
Customer Response .819 .167 .172 -.073 .069
Ambience .704 .212 .302 .051 .100
Parking Space .460 .231 .509 -.028 -.115
Layout of Store .407 -.027 .708 -.064 .250
Availability of Private Labels .098 .178 .739 .294 -.170
Children Play Area .014 .239 .743 .191 .068
Quality Sales Person .145 .638 .455 -.039 .132
Window Display .307 .719 .272 -.129 .083
Co-Shoppers Status .092 .793 .085 .165 .142
Billing Speed .407 .560 .151 .254 .187
Credit Card Services .436 .524 .072 .105 .067
Eigen Value 7.86 1.60 1.41 1.12 1.03
% of Variance 20.11 17.01 13.85 7.48 6.63
Cumulative % of Variance 20.11 37.12 50.97 58.46 65.09
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Rotation converged in 10 iterations.
191
Reliability
Table 4.20 Cronbach’s Alpha Reliability Coefficient
Variables No. of Cronbanch

Items Alpha
Attributes 20 0.92
The factors determining consumers’ choice of supermarkets are
measured using a ten point scale and the reliability coefficient is presented in
Table 4.20. The Cronbach’s alpha of the scale is 0.92 indicating
that each measure demonstrates acceptable internal consistency.
Coimbatore
supermarkets in Coimbatore, factor analysis (principal component analysis)
is carried out on 20 variables with Eigen value greater than one and the
results are presented in Table 4.21. There are six independent groups of
variations on 20 attributes. Each of the six factors contributes to 16.72 per
cent, 15.39 per cent, 14.22 per cent, 12.89 per cent, 11.74 per cent, and
10.68 per cent respectively.
192
Factor-I: Out of 20 variables, four dimensions have their high, relatively
tightly grouped factor loadings on factor-I. These variables are sales
promotion-gifts, coupon etc, membership and loyalty cards, services and
response to customer. These four variables together are named as
“CUSTOMER FOCUS”.
Factor-II: This factor is formed with layout of the store, availability of
private labels, children play area and quality of the sales person. These
variables form the factor “LAYOUT AND PRIVATE LABELS”.
Factor-III: This factor includes availability of variety of products, location
and retailer’s brand image. These variables make the factor “IMAGE AND
LOCATION”.
Factor-IV: Window display, co-shoppers status and billing speed go into
the making of factor IV, “STATUS AND SPEED”.
Factor-V: This factor consists of ambience, parking space and credit card
services with the name “AMBIENCE AND PAYMENT SERVICES”.
Factor-VI: This factor deals with quality of merchandise, value for money
and availability of premium brands and it is named as “QUALITY
BRANDS”.
193
Coimbatore respondents seem to value Customer Relationship
Management as a significant experience in their shopping. The essence of
CRM rests on the retention of the customer through satisfying conventions
of the marketers; one easy way to initiate and later build relationship is to
recognize the repetitive loyal customers in terms of discount, concessions in
price. Along with satisfying service and warm responsiveness of the store
personnel, naturally, promotion-gifts and membership and loyalty cards
form the first factor with the Coimbatore respondents.
Convenience in the shop to see and move about and care for the
children take the second place with the other factors such as ‘Image and
Location’, ‘Status and Speed’ trail behind.
194
Supermarkets in Coimbatore- Factor Analysis
Factor- Factor- Factor- Factor- Factor- Factor-
I II III IV V VI
Quality of Merchandise .030 .303 -.015 .131 .146 .812
Value for Money Pricing -.023 -.027 .182 .020 .075 .892
Availability of Premium
Brands -.191 .029 .637 .129 .081 .572
Variety of Products -.058 -.045 .845 -.059 .038 .208
Location .286 -.016 .847 .107 .021 .026
Retailer Brand Image .451 .028 .747 .188 .121 -.099
Sales Promotion-gifts,
coupon etc .868 .078 .206 .098 -.116 -.062
Membership and Loyalty
Cards .881 -.035 .159 .089 .085 -.072
Services .833 .058 -.034 .216 .310 .011
Customer Response .615 .170 .058 -.046 .467 .216
Ambience .469 .356 .037 -.023 .644 .311
Parking Space .185 .496 .170 -.019 .692 .290
Layout of Store .125 .750 .099 -.001 .416 .081
Availability of Private
Labels .014 .863 -.067 .176 .237 .137
Children Play Area .000 .899 -.037 .079 -.103 .004
Quality Sales Person .075 .626 -.090 .493 -.033 .112
Window Display .095 .240 .061 .895 .072 .110
Co-Shoppers Status .197 .028 .112 .910 .078 .048
Billing Speed .174 -.061 .300 .520 .650 -.029
Credit Card Services -.249 .019 -.426 .370 .540 -.031
Eigen Value 6.08 3.24 2.52 1.98 1.49 1.02
% of Variance 16.72 15.39 14.22 12.89 11.74 10.68
Cumulative % of Variance 16.72 31.11 46.33 59.22 70.95 81.58
195
Reliability

Items Alpha
Attributes 20 0.87

Madurai
supermarkets in Madurai, factor analysis (principal component analysis) is
are presented in Table 4.23. There are eight independent groups of
variations on 20 attributes. Each of the eight factors contributes to 10.79 per
cent, 10.74 per cent, and 9.78 per cent, 9.39 per cent, 9.38 per cent, 9.05 per
cent, 8.46 per cent and 7.73 per cent respectively.
196
Factor-I: Out of 20 variables, three dimensions have their high, relatively
tightly grouped factor loadings on factor-I. These variables are layout of the
store, children play area and window display. These three variables together
form “LAYOUT AND DISPLAY”.
Factor-II: This factor is formed with parking area, availability of private
labels and billing speed. These variables are named as “BILLING SPEED
AND PRIVATE LABELS”.
Factor-III: This factor which includes availability of premium brands,
services and co-shoppers status is called “BRAND AND STATUS”.
Factor-IV: This factor called as “PERSONALITY AND BRAND IMAGE”
is formed with retailer’s brand image and quality of the sales person.
Factor-V: This factor “VALUE AND SALES PROMOTION” consists of
three variables namely value for money, sales promotions-gifts, coupon etc
and membership and loyalty cards
Factor-VI: “MERCHANDISE QUALITY” is the only variable that forms
the factor named after the variable.
Factor-VII: “LOCATION” is the only variable that lends its name to the
factor.
Factor-VIII: This factor called “AMBIENCE” includes the only variable
of ‘ambience’.
197
The Madurai respondents seem to attach, interestingly enough, great
importance to ‘window display’ and ‘children play area’. A marketer who
fails to attract the attention of the prospective customers cannot make good
business; to attract is to make one’s presence felt, even under casual
circumstances. Moreover, the presence of ‘Children play area’ adds to the
temptation of trial purchases or even visits to the shop. Other factors such as
‘billing speed’, ‘private labels’ and ‘brand and status’ come behind.
Strangely enough, even the ‘quality of merchandise’ does not obtain any
leading place in the factor structure.
198
Supermarkets in Madurai- Factor Analysis
Rotated Factors Loadings on
Attributes Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor-
I II III IV V VI VII VIII
Quality of
Merchandise -.038 .099 .080 -.053 .123 .915 -.022 .081
Value for Money
Pricing -.009 .199 .127 .004 .671 -.314 .411 .293
Availability of
Premium Brands -.013 -.195 .523 .193 -.429 -.128 .060 -.096
Variety of Products .226 -.432 -.497 .130 -.120 .457 -.048 -.041
Location .065 -.061 -.066 -.107 .141 -.156 .862 .097
Retailer Brand Image -.273 .381 .286 .609 .074 -.125 -.050 .005
Sales Promotion-
gifts, coupon etc .148 .158 -.094 -.138 .701 .103 -.113 -.273
Membership and
Loyalty Cards -.268 -.191 .304 .134 .687 .206 .045 .141
Services -.065 .249 .678 .100 .084 .216 .082 -.257
Customer Response -.152 .079 -.196 .712 .107 .354 .077 .004
Ambience -.047 .053 -.021 .095 -.005 .102 .023 .926
Parking Space .299 .549 .227 -.091 .114 .382 -.256 .262
Layout of Store .501 -.062 .264 .432 -.278 -.058 .472 .112
Availability of
Private Labels .386 -.660 -.109 -.146 -.155 .053 .018 .127
Children Play Area .650 -.247 .089 .264 -.029 .237 .067 -.411
Quality Sales Person .272 .033 .039 .710 -.223 -.210 -.028 .071
Window Display .886 -.130 .006 -.116 .040 -.099 -.051 .020
Co-Shoppers Status .314 -.080 .755 -.142 .146 .022 -.113 .292
Billing Speed -.097 .844 -.098 .147 -.013 .094 .144 .093
Credit Card Services -.156 .231 .078 .173 -.133 .317 .643 -.224
Eigen Value 3.21 2.44 2.09 1.94 1.64 1.46 1.20 1.08
% of Variance 10.79 10.74 9.78 9.39 9.38 9.05 8.46 7.73
Cumulative % of 10.79 21.53 31.31 40.70 50.08 59.13 67.59 75.32
Variance
199

Items Alpha
Attributes 20 0.85
Reliability

Trichy
supermarkets in Trichy, factor analysis (principal component analysis) is
are presented in Table 4.25. There are five independent groups of
variations on 20 attributes. Each of the five factors contributes to 18.90 per
cent, 17.81 per cent, 17.33 per cent, 15.81per cent and 9.49 per cent
respectively.
200
Factor-I: Out of 20 variables, six dimensions have their high, relatively
tightly grouped factor loadings on factor-I. These variables are variety of
products, location, retailer’s brand image, sales promotions-gifts, coupon
etc, membership and loyalty cards, and services. These six variables together
form “CUSTOMER FOCUS”.
private labels, children play area, quality of sales person, window display
and co-shoppers status. These variables are named as “LAYOUT AND
PRIVATE LABLES”.
Factor-III: This factor includes response to customer, ambience and
parking space. These variables constitute “AMBIENCE AND
RESPONSE”.
Factor-IV: This factor called “QUALITY AND BRANDING” consists of
quality of merchandise, value for money and availability of premium brands.
Factor-V: The two variables billing speed and credit card services make the
factor “BILLING SERVICES”.
201
The sequence of factors begins with ‘customer focus’. The
respondents of Trichy seem to value the vast list of products, made available
to them. It is quite possible that the presence of brands of a product gives
them the experience of choosing the best of their choice. Comparison of
brands of a product of their choice is a common activity almost any
customer engages himself in. Of course, mere display of many brands alone
won’t do, the customers must be given due recognition for their loyalty to
the shop, and, promotion-gifts and coupon amply fulfill this important need
of the customers. Once recognition is there to their satisfaction, the
customers tend to compromise with some minor lapses in any other area of
business ambience. Logically, here, we find factors like ‘ambience and
response’ are pushed down to later positions.
202
Supermarkets in Trichy- Factor Analysis

Factor- Factor- Factor- Factor- Factor-
I II III IV V
Quality of Merchandise -.010 -.008 -.212 .761 .054
Value for Money Pricing .075 -.133 -.195 .829 .092
Availability of Premium
Brands .175 -.138 -.075 .846 .053
Variety of Products .593 -.166 -.183 .546 .207
Location .842 .002 -.083 .281 .018
Retailer Brand Image .814 .066 .069 .310 .133
Sales Promotion-gifts,
coupon etc .892 .173 .116 -.023 -.048
Membership and Loyalty
Cards .779 .077 .309 -.282 -.151
Services .558 .148 .508 -.368 -.261
Customer Response .405 .178 .680 -.390 -.106
Ambience .153 .130 .892 -.218 .007
Parking Space -.018 .179 .884 -.172 .069
Layout of Store -.052 .663 .411 -.075 -.220
Availability of Private
Labels -.042 .709 .449 .041 -.176
Children Play Area .027 .810 .351 .169 -.147
Quality Sales Person .108 .813 .252 -.262 .036
Window Display .153 .820 -.093 -.287 .190
Co-Shoppers Status .203 .641 -.199 -.159 .445
Billing Speed .101 .066 .080 .222 .801
Credit Card Services -.161 -.091 -.092 .040 .798
Eigen Value 6.41 3.93 2.45 1.75 1.33
% of Variance 18.90 17.81 17.33 15.81 9.49
Cumulative % of Variance 18.90 36.70 54.03 69.84 79.33
203
Reliability

Items Alpha
Attributes 20 0.83

Table 4.26. The Cronbach’s alpha of the scale is 0.83 indicates
Tamil Nadu
supermarkets in Tamil Nadu, factor analysis (principal component analysis)
is carried out on 20 variables with Eigen value greater than one and the
results are presented in Table 4.27. There are six independent groups of
variations on 20 attributes. Each of the six factors contributes to 15.99 per
cent, 13.70 per cent, and 12.36 per cent, 8.92 per cent, 8.91 per cent and 6.94
per cent respectively.
204
Factor-I: Out of 20 variables, five dimensions have their high, relatively
tightly grouped factor loadings on factor-I. These variables are membership
and loyalty cards, services, response to the customer, ambience and parking
space. These five variables together are named as “CUSTOMER FOCUS”.
private labels, children play area and quality of the sales person. These
variables are named as “LAYOUT AND PRIVATE LABELS”.
Factor-III: The four variables namely, availability of premium brands,
variety of products, location and retailer’s brand image are grouped together
to form the factor “LOCATION AND BRANDS”.
Factor-IV: Billing speed and credit card services form this factor
“BILLING EFFICIENCY”.
Factor-V: Window display and co-shopper status form the factor
“DISPLAY AND STATUS”.
Factor-VI: This factor is made up of with quality of merchandise and value
for money. It is named as “QUALITY AND VALUE”.
205
If ‘customer is always right’ is the unequivocal business slogan, to try to
master the customers’ buying behavior is the sole concern of any business. It
is generally known that the buying experience of a customer must be to
gratifying experience to him. He is concerned not only with the quality of
the brand of his choice and its availability in the store, but also with the
auxiliary conveniences of free car parking space and pleasing attention of
the store personnel. Moreover, the customer as a matter of course expects
from the marketer that his repeated presence must be noted by the shop
personnel and he must be given greater recognition than a casual visitor can
command. Understandably, all the primarily ‘customer focus’ factor with
variables such as membership and loyalty cards ,services and response to
customer command the first factor in the present factor structure.
206
Supermarkets in Tamil Nadu- Factor Analysis
Factor- Factor- Factor- Factor- Factor- Factor-
I II III IV V VI
Quality of Merchandise .080 .033 .004 .068 .002 .800
Value for Money Pricing .004 .005 .346 -.135 .119 .658
Availability of Premium Brands -.041 .187 .652 .119 .030 .356
Variety of Products .060 .176 .706 .111 -.105 .054
Location .221 .067 .720 .020 .204 -.017
Retailer Brand Image .429 .060 .638 .154 .146 .072
Sales Promotion-gifts, coupon etc .443 -.017 .425 -.273 .488 .128
Membership and Loyalty Cards .643 -.053 .370 -.169 .385 -.012
Services .777 .051 .125 .020 .255 -.052
Customer Response .788 .209 .187 .177 -.071 -.043
Ambience .711 .324 .079 .234 -.070 .115
Parking Space .620 .377 -.063 .196 .026 .273
Layout of Store .292 .752 .167 .061 -.039 .074
Availability of Private Labels .148 .800 .066 -.042 .072 -.018
Children Play Area .005 .761 .176 -.155 .188 .109
Quality Sales Person .194 .567 .046 .364 .309 -.119
Window Display .082 .482 .105 .246 .637 -.067
Co-Shoppers Status .077 .169 .024 .284 .794 .148
Billing Speed .267 -.046 .208 .740 .223 .100
Credit Card Services .044 .014 .065 .795 .080 -.059
Eigen Value 5.88 2.00 1.71 1.52 1.21 1.05
% of Variance 15.99 13.70 12.36 8.92 8.91 6.94
Cumulative % of Variance 15.99 29.70 42.05 50.98 59.88 66.83
207
Reliability

Items Alpha
Attributes 20 0.87
Table 4.28. The Cronbach’s alpha of the scale is 0.87 indicating that each
measure demonstrates acceptable internal consistency.
There are significant factors determining the customers’ choice of the
organized supermarkets.
Importance Rating of the Service Quality of Supermarkets using
SERVQUAL in Chennai
In order to identify the importance rating of supermarkets in Chennai,
principal components exploratory factor analysis with varimax rotation is
performed on the original 33 service quality dimension and the results are
presented in Table 4.29. Principal components factor analysis is a statistical
technique that transforms data from one set of variables into a smaller set of
uncorrelated factors. An orthogonal varimax rotation is conducted because it
208
maximizes the amount of variance described by a factor and minimizes the
correlation between factors.
Factor analysis of 33 service quality dimensions reveal eight factor
structures that explains 65.31 per cent of total variance.
Factor-I CUSTOMER ORIENTATION: It is composed of seven service
quality dimensions: the retailer performing the service right the first time,
retailer providing the services at the time he promises to do, the retail store
personnel having the knowledge to answer customers’ questions, presence of
security and other support personnel, practicing returns policy and after sales
guarantees, materials associated with service(pamphlets, brochure, cards) are
visually appealing and informative and the store being easily accessible.
These dimensions account for 13.01 per cent of variation, making it the
dominant factor.
Factor-II TRANSPARENCY AND BEHAVIOUR: The service quality
dimensions of the retailer insisting on error- free records and transactions,
consistency and dependability of store(personal performance), the behavior
of store personnel instilling confidence in customers, customers feeling safe
209
in their transactions with the retailer and the retail store personnel being
consistently courteous with customers form the factor-II.
Factor-III CUSTOMER CARE: This factor is formed with employees
always willing to help customers, sales personnel recognizing the value of
regular customers, the retailer having state of art equipment and gadgets and
the store being easily located with sign boards and directions.
Factor-IV APPEAL AND PERSONAL CARE: The variables, retailer
paying individual attention to customers, provision of information about
product and services and the stores’ physical facilities being visually
appealing are grouped in this factor.
Factor-V COMMUNICATION AND PROMPTNESS: The Retailer
promises to do something by a certain time, doing so, the retailer showing a
sincere interest in solving customers’ problems, the retailer keeping
customer informed about when services will be performed and store
personnel giving customers prompt service form this factor.
210
Factor-VI CUSTOMER INTERST: This factor comprises the service
dimensions namely, the retailer has the customer’s best interest at heart and
employees understand the customers’ specific needs.
Factor-VII RESPONSE AND TIMINGS: This factor is composed of the
service dimensions such as employees are never too busy to respond to
customers and the store has business hours that are convenient to all its
customers.
Factor-VIII BILLING EFFICIENCY: This factor is formed with two
service dimensions namely efficient check-out operations and accuracy in
billing (safe payment and receipt).
211
Table 4.29 Importance Rating of the Service Quality in Supermarkets in
Chennai-Exploratory Factor Analysis
Service Dimensions Rotated Factors Loadings on

Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor-
I II III IV V VI VII VIII
Retailer promises to
do something by a -.038 -.054 -.088 .243 .721 .413 -.231 .037
certain time, doing so
The retailer showing a
sincere interest in
solving customers’ .363 -.028 .258 .037 .586 .002 -.061 .283
problem
The retailer performs
the service right the .694 .165 .265 .119 .007 .029 -.009 .164
first time
Retailer providing the
services at the time it .652 .260 .309 .228 .082 -.019 .020 .020
promises to do so
Retailer insists on
error- free records and .268 .572 .191 .324 .090 .071 .125 .012
Transactions
Consistency and
dependability of
store(personnel .155 .671 .174 .235 -.060 .136 .258 .174
performance)
Efficient check-out
operations .147 .361 .175 .206 .055 .063 .071 .648
Accuracy in
billing(safe payment .319 .162 .272 .003 .194 .124 .143 .614
&receipt
Retailer keeping
customer informed
about when Services -.131 .100 .088 .049 .551 .358 .067 .286
will be performed
Store personnel giving
customers prompt .176 .261 .052 -.013 .739 -.036 .192 -.132
service
Employees are always
willing to help .329 .006 .547 .122 .041 .315 .128 .164
customers
Employees are never
too busy to respond to .334 .034 .398 .109 -.055 .055 .570 .050
Customers
Having an efficient
help-line or customer .411 .343 .259 .437 .075 -.114 .191 -.140
service Desk
The behaviour of store
personnel instilling
confidence in .255 .777 .105 .195 -.007 -.022 -.076 .002
customers
Customers feeling safe
in their transactions .089 .708 .138 .000 .230 .112 -.003 .304
with the retailer
212
The retail store
personnel being
consistently courteous .031 .566 .092 -.068 .175 .504 .172 .216
with customers
The retail store

personnel having the
knowledge to answer .514 .141 .090 -.128 .284 .152 .094 .335
customers ‘questions
Presence of security
and other support .715 .067 -.035 -.002 .058 .188 .092 .013
personnel
Practicing returns
policy and after sales .648 .163 -.006 .021 .054 .171 .470 -.090
guarantees
Retailer paying
individual attention to .188 .234 -.053 .759 .133 .125 .155 .008
customers
The store employees
giving personnel .080 .345 .434 .495 .025 .063 .083 .335
attention to customers
The retailer has the
customers’ best .182 .139 .048 -.005 .140 .746 -.005 .137
interest at heart
Employees understand
the customers’ specific .353 -.002 .127 .212 .046 .760 .149 -.089
needs
The store has business
hours that are
convenient to all its .252 .079 -.009 .126 .061 .058 .763 .101
customers
Provision of
information about -.178 .093 .178 .554 .135 .095 .496 .217
product and services
Explanation of
payment method .038 .026 .392 .262 .441 -.170 .339 .241
Sales personnel
recognizing the value -.027 .437 .632 .005 .162 -.067 .037 .264
of regular customers
The retailer having
state-of art equipment .227 .403 .541 .217 .036 -.087 -.174 .238
and Gadgets
The stores’ physical
facilities are visually .408 .150 .391 .534 -.012 .063 -.066 .172
appealing
Store personnel appear
neat .474 .033 .302 .093 -.053 .194 .300 .089
Materials associated
with
service(pamphlets,
Brouchers, cards)are .537 .172 -.295 .238 .117 .124 .173 .344
visually appealing and
Informative
213
Store being easily
accessible .548 .179 -.226 .216 .017 .111 .185 .347
The store can be easily
located with
signboards and -.009 .261 .755 .041 .148 .195 .215 -.060
directions
Eigen Value 9.97 2.56 2.27 1.65 1.51 1.35 1.18 1.07
% of Variance 13.01 10.36 9.20 7.01 6.89 6.45 6.33 6.07
Cumulative % of 13.01 23.37 32.57 39.57 46.47 52.91 59.24 65.31
Variance
214
Reliability

Items Alpha
Service Dimensions 33 0.93
Coimbatore
In order to identify the importance rating of supermarkets in
Coimbatore, principal components exploratory factor analysis with varimax
rotation is performed on the original 33 service quality dimension and the
results are presented in Table 4.31. Principal components factor analysis is a
statistical technique that transforms data from one set of variables into a
smaller set of uncorrelated factors. An orthogonal varimax rotation is
conducted because it maximizes the amount of variance described by a
factor and minimizes the correlation between factors.
215
Factor analysis of 33 service quality dimensions reveal twelve factor
structures that explains 74.27 per cent of total variance.
Factor-I CUSTOMER ORIENTATION: It is composed of four service
quality dimensions: the retail store personnel having the knowledge to
answer customers’ questions, presence of security and other support
personnel, practicing returns policy and after sales guarantees and retailer
paying individual attention to customers These dimensions account for 8.69
per cent of variation, making it the dominant factor.
Factor-II TRANSPARENCY AND PERFORMANCE: The service
quality dimensions of the retailer providing the services as the time he
promises to do, retailer insisting on error-free records and transactions and
consistency and dependability of store(personnel performance) form the
factor-II.
Factor-III PERSONNEL BEHAVIOUR: This factor is formed with the
behavior of store personnel instilling confidence in customers and
explanation of payment method.
216
Factor-IV CONVENIENCE AND SAFETY: Employees are always
willing to help customers, customers feeling safe in their transactions with
the retailer and the store has business hours that are convenient to all its
customers, these service dimensions are grouped in this factor
“Convenience and safety”
Factor-V EFFICIENCY: Efficient check-out operations, accuracy in billing
(safe payment and receipt) are the two service dimensions that go into the
making of this factor.
Factor-VI APPEAL AND ACCESS: This factor consists of the following
service dimensions, materials associated with service (pamphlets, brochures,
cards) are visually appealing and informative and store being easily
accessible.
Factor-VII INTEREST AND COMMUNICATION: It is composed of the
service dimensions such as employees are never too busy to respond to
customers and provision of information about product and services
217
Factor-VIII AMBIENCE: This factor is formed with the service dimensions
that refer to, the stores’ physical facilities are visually appealing and store
personnel appear neat.
Factor-IX CUSTOMER INTEREST: The retailer showing a sincere
interest in solving customers’ problem and the retailer has the customers’
best interest at heart- the two service dimensions form the factor ‘Customer
Interest’.
Factor-X RECOGNITION Sales personnel recognizing the value of regular
customer is the only service dimension of this factor.
Factor-XI TRUST: This factor is formed with the service dimension, the
retailer promises to do something by a certain time, doing so.
Factor-XII CUSTOMER CARE: This factor consists of the service
dimension of having an efficient help-line or customer service desk.
218
Table 4.31 Importance Rating of the Quality of Services for Supermarkets in Coimbatore-Exploratory
Factor Analysis
Service Dimensions Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor-
I II III IV V VI VII VIII IX X XI XII
Retailer promises to do
something by a certain time, .088 .123 -.029 -.089 -.015 .116 .022 -.009 -.023 .115 .871 -.008
doing so
The retailer showing a
sincere interest in solving -.105 .219 .043 -.029 .089 -.010 -.178 .095 -.685 -.137 .362 .095
customers’ problem
The retailer performs the
service right the first time .127 .441 -.070 .033 .481 .358 -.191 -.019 -.007 -.005 .207 .254
Retailer providing the
services at the time it .213 .742 -.119 -.002 .224 -.037 -.048 .067 -.099 .077 .012 .074
promises to do so
Retailer insists on error- free
records and Transactions -.107 .721 -.012 -.022 .104 .137 .008 .125 -.028 .143 .105 .048
Consistency and
dependability of
store(personnel .123 .562 .409 -.046 .140 -.362 -.014 .242 .071 -.294 .044 -.123
performance)
Efficient check-out
operations .135 .136 -.071 .026 .813 .113 .001 .117 -.062 .020 .025 -.002
Accuracy in billing(safe
payment &receipt .304 .256 .119 .033 .717 .098 -.023 .039 .178 -.025 -.062 -.183
Retailer keeping customer
informed about when -.011 .189 .111 -.310 .248 -.358 .459 -.203 .230 .122 .282 .283
Services will be performed
Store personnel giving
customers prompt service -.332 .160 .060 .149 .332 -.151 .387 -.356 -.279 .040 -.014 .169
Employees are always
willing to help customers -.061 .083 -.047 .850 -.029 -.072 .128 -.127 .027 .130 -.137 .100
Employees are never too
busy to respond to -.026 -.025 .073 .306 -.140 .099 .721 -.040 .063 .021 -.169 .151
Customers
219
Having an efficient help-
line or customer service -.064 .102 .406 .094 -.143 -.051 .161 -.123 .215 .055 .029 .681
Desk
The behaviour of store
personnel instilling .029 .080 .744 .109 -.188 -.003 .174 .042 .076 .057 .048 .186
confidence in customers
Customers feeling safe in
their transactions with the
retailer -.149 -.234 .411 .657 .025 -.043 .017 .068 .034 .134 .051 -.207
The retail store personnel

being consistently courteous
with customers -.103 -.402 .277 .319 .057 -.088 .329 .157 .045 .418 -.020 -.224
The retail store personnel

having the knowledge to
answer customers ‘questions .586 .255 .032 -.191 .114 .004 .050 .136 -.250 .091 -.158 .455
Presence of security and

other support personnel .783 .230 -.061 -.117 .103 .046 .053 -.046 .038 .158 -.077 -.148
Practicing returns policy
and after sales guarantees .824 -.121 .034 -.020 .119 -.039 .138 .095 .105 -.168 .072 .063
Retailer paying individual
attention to customers .676 .011 .089 .126 .193 -.113 -.192 -.222 -.002 .046 .309 -.004
The store employees giving
personnel attention to .398 -.300 -.112 -.058 .325 -.179 -.204 .247 -.216 -.046 .358 .272
customers
The retailer has the
customers’ best interest at -.030 .040 .244 .157 .094 -.132 -.025 .072 .749 .112 .144 .178
heart
Employees understand the
customers’ specific needs .113 .066 .363 .430 .135 -.105 .267 .035 .392 -.227 .186 .323
The store has business hours
that are convenient to all its .053 -.049 .166 .620 .161 -.154 .342 .103 .319 -.271 -.015 .054
customers
Provision of information .304 -.265 .309 .128 -.015 -.007 .602 .106 .116 -.149 .247 -.135
220
about product and services
Explanation of payment
method .055 -.180 .711 .061 .248 -.119 .004 -.145 .119 .126 -.105 .091
Sales personnel recognizing
the value of regular .288 .268 -.010 -.154 .110 -.071 -.158 .051 .011 .653 .205 -.182
customers
The retailer having state-of
art equipment and Gadgets .166 .074 -.485 -.102 .332 -.123 -.107 .431 .042 .339 .086 .102
The stores’ physical
facilities are visually -.066 .293 .009 -.045 .220 -.007 -.298 .657 .051 .141 -.195 -.042
appealing
Store personnel appear neat -.009 .069 -.051 .032 .007 .149 .142 .840 -.039 .058 .087 -.026
Materials associated with
service(pamphlets,
Brouchers, cards)are -.083 .239 -.161 -.101 .065 .813 .136 .056 -.021 -.104 .001 -.095
visually appealing and
Informative
Store being easily accessible .005 -.102 .057 -.088 .145 .848 -.082 .096 -.077 -.031 .094 .025
The store can be easily
located with signboards and -.118 .029 .115 .187 -.064 -.081 .055 .140 .183 .624 .003 .210
directions
Eigen Value 5.00 4.20 2.46 2.09 1.97 1.54 1.46 1.37 1.28 1.11 1.04 1.01
% of Variance 8.69 7.89 7.04 6.90 6.79 6.17 5.94 5.70 5.22 4.81 4.77 4.35
Cumulative % of Variance 8.69 16.57 23.61 30.51 37.30 43.48 49.42 55.12 60.34 69.15 69.92 74.27
221
Reliability
Table. 4.32 Cronbach’s Alpha Reliability Coefficient

Items Alpha
Madurai
In order to identify the importance rating of supermarkets in Madurai,
222
Factor analysis of 33 service quality dimensions reveal eleven factor
structure that explains 75.84 per cent of total variance.
Factor-I CUSTOMER CARE : It is composed of three service quality
dimensions of having an efficient help line or customer service desk, the
stores’ physical facilities are visually appealing and materials associated
with service(pamphlets, brochures, cards) are visually appealing and
informative. These dimensions account for 8.27 per cent of variation,
making it the dominant factor.
Factor-II TRUST AND ACCURACY: The service quality dimensions of
the retailer promising to do something by a certain time, doing so, accuracy
in billing(safe payment and receipt), retailer paying individual attention to
customers and the store employees giving personnel attention to customers
form the factor-II.
Factor-III RESPONSE TO THE CUSTOMER: This factor is formed with
the employees being never too busy to respond to customers, having an
efficient help line or customer service desk, practicing returns policy and
after sales guarantees and explanation of payment method.
223
Factor-IV CUSTOMER INTEREST: The retailer showing a sincere
interest in solving customers’ problems and employees are always willing to
help customers are grouped in this factor.
Factor-V PERSONNEL PERFORMANCE: Consistency and
dependability of store (personnel performance), the retail store personnel
being consistently courteous with customers, presence of security and other
support personnel and employees understanding the customers’ specific
needs are grouped under this factor.
Factor-VI SAFETY AND PERSONALITY: This factor comprises the
customers feeling safe in their transactions with the retailer, The retail store
personnel having the knowledge to answer customers’ questions and the
store personnel appear neat
Factor-VII INFORMATION AND ACCESS: It is formed out of the
service dimensions of provision of information about product and services
and the store being easily accessible.
224
Factor-VIII PROMPTNESS AND ATTENTION: This factor is formed
with the store personnel giving customers prompt service, the retailer
paying individual attention to customers and the store having business hours
that are convenient to all its customers.
Factor-IX EFFICIENCY: Efficient check-out operations form the
Factor-IX.
Factor-X TRUST AND TECHNOLOGY: The retailer providing the
services at the time he promises to do so and the retailer having the state-of
art equipment and gadgets make this factor.
Factor-XI SERVICE PERFORMANCE: This factor is formed with the
retailer performing the service right the first time
Factor-XII BEHAVIOUR AND APPEAL: This factor consists of the
behavior of store personnel instilling confidence in customers, and the
stores’ physical facilities being visually appealing.
225
Table 4.33 Importance Rating of Quality of Services for Supermarkets in Madurai-Exploratory
Factor Analysis

Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor-
I II III IV V VI VII VIII IX X XI XII
Retailer promises to do
something by a certain time, .205 .637 .099 -.007 -.103 .146 .263 .006 .450 -.108 -.125 .205
doing so
The retailer showing a sincere
interest in solving customers’ .062 .146 .141 .651 -.087 .003 .001 -.002 .047 -.198 -.277 .062
problem
The retailer performs the service
right the first time -.078 .155 -.055 -.086 .276 .039 -.069 .024 .106 .024 .835 -.078
Retailer providing the services at
the time it promises to do so -.072 .062 .025 -.291 .147 .022 .158 -.049 .191 .803 -.140 -.072
Retailer insists on error- free
records and Transactions .445 -.197 .066 .177 .228 .293 -.257 -.365 -.127 -.057 -.256 .445
Consistency and dependability of
store(personnel performance) -.021 .100 -.174 -.495 -.505 .382 -.039 .163 -.138 .118 .046 -.021
Efficient check-out operations -.057 -.023 -.016 -.004 -.036 .076 -.008 -.014 .842 .126 .125 -.057
Accuracy in billing(safe payment
&receipt -.179 -.327 -.485 .121 .299 -.074 -.070 -.151 -.224 -.275 .277 -.179
Retailer keeping customer
informed about when Services -.322 .708 .108 .039 .030 -.085 .123 -.033 .007 .070 .016 -.322
will be performed
Store personnel giving customers
prompt service .202 -.234 .380 .147 -.023 -.012 .044 .507 -.457 .109 .340 .202
Employees are always willing to
help customers -.229 .042 -.121 .846 -.064 .055 -.007 .125 -.073 -.031 .110 -.229
Employees are never too busy to
respond to Customers -.057 -.082 -.444 -.034 .105 .227 .038 .456 -.083 .142 -.351 -.057
Having an efficient help-line or
customer service Desk .028 .057 .741 .014 .190 -.189 -.042 -.107 -.266 .320 -.110 .028
226
The behaviour of store personnel
instilling confidence in .757 -.311 .052 -.014 -.170 .050 .170 .115 .299 .070 .080 .757
customers
Customers feeling safe in their
transactions with the retailer .183 -.063 -.190 .342 -.044 .547 .025 .293 .264 .191 -.047 .183
The retail store personnel being
consistently courteous with
customers .076 -.101 .011 -.098 .753 -.253 .001 .129 -.188 -.048 .064 .076
The retail store personnel having

the knowledge to answer
customers ‘questions -.049 .194 .225 -.489 -.119 .616 .012 -.160 .113 .061 -.052 -.049
Presence of security and other

support personnel -.179 .170 -.028 -.036 .811 .047 .018 .172 .085 .261 .104 -.179
Practicing returns policy and
after sales guarantees -.195 .131 .560 .362 -.234 -.094 .066 -.034 .402 .037 -.011 -.195
Retailer paying individual
attention to customers .390 .008 -.219 -.043 .190 -.251 -.353 .533 .153 -.023 .144 .390
The store employees giving
personnel attention to customers -.123 -.642 -.084 -.018 -.147 .169 .370 -.102 .075 -.347 -.217 -.123
The retailer has the customers’
best interest at heart -.094 .611 -.084 .334 .086 .201 -.081 -.296 -.092 .144 .274 -.094
Employees understand the
customers’ specific needs .091 .481 .116 -.093 .576 .185 -.036 .025 -.093 -.062 .312 .091
The store has business hours that
are convenient to all its -.115 -.037 .095 .115 .187 -.107 -.062 .877 -.050 -.089 -.112 -.115
customers
Provision of information about
product and services .142 -.017 -.011 -.056 .012 .015 .800 -.012 .192 -.121 -.076 .142
Explanation of payment method .038 -.057 -.669 .203 -.134 .021 .246 -.150 .021 .269 -.196 .038
Sales personnel recognizing the
value of regular customers .066 -.227 .067 -.336 .186 -.323 -.092 .216 -.270 -.340 -.203 .066
The retailer having state-of art
equipment and Gadgets -.031 .252 .218 .008 -.048 .056 -.480 .017 -.069 .614 .283 -.031
227
The stores’ physical facilities are
visually appealing -.684 -.052 .416 .211 .026 -.079 .042 .099 .183 .206 -.062 -.684
Store personnel appear neat -.057 -.029 -.170 .004 -.061 .841 .004 -.158 -.003 -.064 .015 -.057
service(pamphlets, Brouchers,
cards)are visually appealing and .613 -.119 .167 .187 -.014 .198 .424 -.186 -.118 .108 -.176 .413
Informative
Store being easily accessible -.160 .183 -.147 .066 .020 -.042 .767 -.055 -.232 .284 .110 -.160
The store can be easily located
with signboards and directions .205 .637 .099 -.007 -.103 .146 .263 .006 .450 -.108 -.125 .205
Eigen Value 4.00 3.73 2.73 2.57 2.20 2.07 2.04 1.67 1.40 1.34 1.31 4.00
% of Variance 8.27 7.80 7.46 7.40 7.23 6.76 6.72 6.51 6.03 5.86 5.79 8.27
Cumulative % of Variance 8.27 16.08 23.53 30.94 38.16 44.92 51.64 58.16 64.19 70.05 75.84 8.27

228
Reliability

Items Alpha
Trichy
In order to identify the importance rating of supermarkets in Trichy,
229
Factor analysis of 33 service quality dimensions reveal ten factor
Factor-I CUSTOMER ORIENTATION: It is composed of seven service
quality dimensions of consistency and dependability of store(personnel
performance), presence of security and other support personnel, practicing
returns policy and after sales guarantees, retailer paying personal attention,
to customers, the retailer having the state of art equipment and gadgets and
the stores’ physical facilities are visually appealing. These dimensions
account for 14.24 per cent of variation, making it the dominant factor.
Factor-II RESPONSE TO THE CUSTOMER: The retailer showing a
sincere interest in solving customers’ problems, store personnel giving
customers prompt service, employees are always willing to help customers
and employees are never too busy to respond to customers – these service
dimensions go into the making of Factor II.
Factor-III TRANSPARENCY AND APPEAL: Retailer insisting on error-
free records and transactions, retailer keeping customer informed about
when services will be performed, the retail store personnel being
230
consistently courteous with customers, the retailer having the customers’
best interest at heart and materials associated with service(pamphlets,
brochures, cards) are visually appealing and informative are grouped in this
factor.
Factor-IV SERVICE EFFICIENCY: This factor is formed with the
retailer’s performing the service right the first time and efficient check-out
operations.
Factor-V TRUST: Retailer promises to do something by a certain time,
doing so and the retailer providing the services at the time he promises to do
so form this factor.
Factor-VI CUSTOMER CARE: This factor comprises having an efficient
help-line or customer service desk and the behavior of store personnel
instilling confidence in customers.
Factor-VII INFORMATION: It is composed of provision of information
about product and services and explanation of payment method.
231
Factor-VIII KNOWLEDGE AND SECURITY PERSONNEL: This factor
is formed with the retail store personnel having the knowledge to answer
customers’ questions and presence of security and other support personnel.
Factor-IX ACCURACY AND ATTENTION: Accuracy in billing (safe
payment and receipt) and the store employees giving personnel attention to
customers make this factor-IX.
Factor-X SAFETY AND EMPATHY: This factor is formed with the
customers feeling safe in their transactions with the retailer and employees
understand the customers’ specific needs.
232
Table 4.35 Importance Rating of Quality of Services for Supermarkets in Trichy-Exploratory Factor
Analysis

Service Dimensions Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor- Factor-
Factor-I
II III IV V VI VII VIII IX X
Retailer promises to do something by a
certain time, doing so -.016 -.081 .113 -.064 -.833 -.006 -.051 .065 -.009 -.084
The retailer showing a sincere interest in
solving customers’ problem .259 .598 .227 -.292 .005 .269 .198 -.160 -.168 -.025
The retailer performs the service right the
first time .296 .186 -.167 -.604 .422 .260 .180 -.072 -.176 .094
Retailer providing the services at the time it
promises to do so .493 .096 .058 -.093 .663 .220 -.104 .016 -.218 -.008
Retailer insists on error- free records and
Transactions .155 -.127 .542 .428 .342 -.040 .015 .195 .075 -.172
store(personnel performance) .635 .065 .352 .469 .077 -.122 .033 .004 .000 -.024
Efficient check-out operations .357 .237 .135 .593 -.221 .105 .184 -.104 .249 .100
Accuracy in billing(safe payment &receipt .169 .068 .011 -.055 -.171 -.026 .091 .176 .833 -.032
Retailer keeping customer informed about
when Services will be performed -.140 .463 .539 -.009 -.431 .051 .092 .146 -.072 -.008
Store personnel giving customers prompt
service .354 .694 .119 .227 -.101 .099 .092 -.069 -.017 .082
Employees are always willing to help
customers .032 .796 -.006 .040 .092 -.110 .008 .086 .074 .040
Employees are never too busy to respond to
Customers -.088 .854 -.106 -.103 .132 .040 -.003 .019 .044 .079
Having an efficient help-line or customer
service Desk .091 .141 -.123 -.101 .153 .852 -.106 .066 .042 -.042
The behaviour of store personnel instilling
confidence in customers .271 -.204 -.011 .152 -.044 .692 .230 -.061 .023 -.394
Customers feeling safe in their transactions .002 -.124 .396 .064 -.212 .275 .045 -.011 .369 -.501
233
with the retailer

consistently courteous with customers .132 -.049 .786 .011 -.136 .011 -.066 .066 .134 -.093
The retail store personnel having the
knowledge to answer customers ‘questions .161 .070 .250 .168 -.126 -.005 .111 .801 .158 .110
Presence of security and other support
personnel .511 -.043 .076 -.033 .061 .082 .027 .735 .052 .111
Practicing returns policy and after sales
guarantees .797 .034 .015 -.004 .322 .065 .028 .157 .067 -.081
Retailer paying individual attention to
customers .788 -.018 .189 -.064 .124 .210 .005 -.073 .258 .123
The store employees giving personnel
attention to customers -.129 -.027 .349 .013 .253 .131 -.074 -.023 .615 .385
The retailer has the customers’ best interest
at heart -.093 .051 .611 -.059 -.036 -.308 .132 .026 .072 .191
Employees understand the customers’
specific needs .128 .124 .082 .081 .006 -.158 .120 .189 .166 .776
The store has business hours that are
convenient to all its customers .186 .382 -.223 .271 .034 .097 .387 .304 -.067 .324
Provision of information about product and
services .068 .009 -.052 .079 .084 .135 .879 .085 .041 .109
Explanation of payment method -.037 .105 .132 -.153 -.074 -.184 .855 .017 .023 -.055
Sales personnel recognizing the value of
regular customers .078 .432 .298 .144 .042 -.275 -.113 .188 .371 -.379
The retailer having state-of art equipment
and Gadgets .593 .170 -.074 .161 .099 -.208 .123 .328 .144 -.332
The stores’ physical facilities are visually
appealing .860 .043 -.147 .004 -.134 .003 .163 .194 -.002 .079
Store personnel appear neat .752 .156 .086 -.092 .010 .267 -.206 .175 -.160 .086
service(pamphlets, Brouchers, cards)are .105 .151 .542 .375 .003 .492 -.084 .102 -.022 .230
visually appealing and Informative
234
Store being easily accessible .368 .239 .489 .208 .417 .074 .057 .218 -.057 -.154
The store can be easily located with
signboards and directions .172 .028 .084 -.729 -.240 -.089 .071 -.165 .253 -.037
Eigen Value 6.58 3.67 2.97 2.25 2.15 1.81 1.67 1.55 1.32 1.12
% of Variance 14.24 9.50 9.02 7.10 6.97 6.73 6.16 5.48 5.47 5.42
Cumulative % of Variance 14.24 23.73 32.75 39.85 46.82 53.55 59.71 65.19 70.67 76.08
Rotation converged in 19 iterations
235
Reliability

Items Alpha
Tamil Nadu
In order to identify the importance rating of supermarkets in Tamil
Nadu, principal components exploratory factor analysis with varimax
rotation is performed on the original 33 service quality dimension and the
results are presented in Table 4.37. Principal components factor analysis is a
statistical technique that transforms data from one set of variables into a
smaller set of uncorrelated factors. An orthogonal varimax rotation is
conducted because it maximizes the amount of variance described by a
factor and minimizes the correlation between factors.
236
Factor analysis of 33 service quality dimensions reveal eight factor
Factor-I CUSTOMER ORIENTATION: It is composed of service quality
dimensions of the retailer insisting on error-free records and transactions,
consistency and dependability of store(personnel performance), efficient
check-out operations, accuracy in billing(safe payment and receipt), the store
employees giving personal attention to customers and the retailer having the
state of art equipment and gadgets. These dimensions account for 11.48 per
cent of variation, making it the prominent factor.
Factor-II CUSTOMER SERVICE AND APPEARENCE: The retailer
performing the service right the first time, the retailer providing the services
at the time he promises to do so, presence of security and other support
personnel, practicing returns policy and after sales guarantees, the stores’
physical facilities are visually appealing and store personnel appearing neat-
these service dimensions form the base of the factor-II.
Factor-III COURTEOUSNESS AND EMPATHY: The retail store
personnel being consistently courteous with customers, the retailer has the
237
customers’ best interest at heart and employees understand the customers’
specific needs are grouped in this factor.
Factor-IV INFORMATION AND TIMINGS: This factor is formed with
the service dimensions namely; the store has business hours that are
convenient to all its customers and provision of information about product
and services.
Factor V TRUST: The retailer promises to do something by a certain time,
doing so, the retailer showing a sincere interest in solving customers’
problem, and the retailer keeping customer informed about when services
will be performed are the service dimensions that have been used to form
this factor.
Factor-VI CUSTOMER CARE: This factor comprises having an efficient
help-line or customer service desk, the behavior of store personnel instilling
confidence in customers and customers feeling safe in their transactions with
the retailer.
238
Factor-VII VISUAL APPEAL AND ACCESS: It is composed of the
service dimensions like materials associated with service (pamphlets,
brochure, cards) are visually appealing and informative and the store being
easily accessible.
Factor-VIII RESPONSE TO THE CUSTOMERS: This factor is formed
with the employees being never too busy to respond to customers.
239
Table 4.37 Importance Rating of the quality of Services for Supermarkets in Tamil Nadu-Exploratory
Factor Analysis
Factor Factor- Factor- Factor Factor Factor Factor- Factor-
- II III -IV -V -VI VII VIII
I
Retailer promises to do something by
a certain time, doing so .023 .187 .075 -.071 .786 -.076 .085 -.261
The retailer showing a sincere interest
in solving customers’ problem .188 .228 -.151 -.085 .596 .007 .179 .239
The retailer performs the service right
the first time .288 .635 .081 -.020 -.036 -.008 .093 .001
Retailer providing the services at the
time it promises to do so .255 .662 -.074 -.131 .109 .185 .115 .060
Retailer insists on error- free records
and Transactions .506 .262 .042 -.021 -.057 .321 .310 -.055
store(personnel performance) .539 .304 -.008 .041 .061 .251 .303 -.071
Efficient check-out operations .581 .264 .038 .058 .171 .022 .289 -.036
Accuracy in billing(safe payment
&receipt .642 .199 .264 .127 -.105 -.116 .185 .075
Retailer keeping customer informed
about when Services will be .049 -.029 .367 .155 .622 .001 -.121 .056
performed
Store personnel giving customers
prompt service -.135 -.009 .052 .258 .453 .270 .007 .304
Employees are always willing to help
customers .083 .085 .197 .143 .098 0.00 .008 .726
240
Employees are never too busy to
respond to Customers -.022 .050 .111 .341 -.093 .156 .047 .697
Having an efficient help-line or
customer service Desk -.050 .355 .044 .241 -.049 .620 -.082 .215
The behaviour of store personnel
instilling confidence in customers .144 .024 .115 .167 -.025 .816 .082 -.024
Customers feeling safe in their
transactions with the retailer .272 -.149 .373 -.030 .174 .559 .134 .141

consistently courteous with customers .137 -.128 .661 .109 -.020 .330 -.016 .131
The retail store personnel having the

knowledge to answer customers
‘questions .284 .415 .109 -.079 .303 -.073 .348 -.023
Presence of security and other support

personnel .062 .677 .293 .036 -.051 -.089 .117 -.094
Practicing returns policy and after
sales guarantees .027 .605 -.067 .139 .147 .050 .301 .104
Retailer paying individual attention to
customers .348 .422 -.040 .401 .035 .126 .117 -.345
The store employees giving personnel
attention to customers .733 .110 -.115 .129 .059 .026 .173 .020
The retailer has the customers’ best
interest at heart -.044 .035 .751 .038 .163 .067 .065 .122
Employees understand the customers’
specific needs -.135 .280 .657 .361 .033 -.002 -.005 .126
The store has business hours that are
convenient to all its customers -.090 .072 .192 .663 -.077 .087 .152 .284
241
Provision of information about
product and services .113 -.079 .106 .794 .040 .121 -.079 .095
Explanation of payment method .213 -.141 .106 .466 .269 .170 -.141 .261
Sales personnel recognizing the value
of regular customers .757 .095 -.027 -.135 .187 .053 -.088 .133
The retailer having state-of art
equipment and Gadgets .659 .289 -.023 .027 -.092 .134 -.110 -.005
The stores’ physical facilities are
visually appealing .318 .676 -.055 .041 .103 .102 -.005 -.055
Store personnel appear neat .163 .646 -.044 -.091 .113 -.006 .094 .233
service(pamphlets, Brouchers,
cards)are visually appealing and .180 .251 .086 -.081 .111 .036 .746 .052
Informative
Store being easily accessible .257 .253 .022 .070 -.009 .127 .656 .022
The store can be easily located with
signboards and directions .320 .130 .242 -.022 .164 .241 -.450 .397
Eigen Value 7.01 3.76 2.01 1.81 1.43 1.25 1.20 1.14
% of Variance 11.48 11.46 6.48 6.19 6.10 6.02 5.92 5.76
Cumulative % of Variance 11.48 22.95 29.43 35.62 41.72 47.33 53.65 59.41

242
Reliability

Items Alpha
There is significant relationship between service quality dimensions
and satisfaction level of the customers in the organized supermarkets.
Business and competition do pair ever; business without competition
proves a repetitive dullness and competition without business is an empty
void with unprofitable hurry and haste. And, updating demands from the
business that technical gadgets and winning ambience must never be
relegated to the background. Before experiencing an appealing service what
can happen, normally, when the customer has stepped in the store, his eyes
must be engaged first by an attractive and effective ambience. But this
appeal must be strengthened by efficient operations of mechanical nature
such as error-free records, and smooth checking out of operations that
include billing speed with accuracy. Of course, personal attention given to
243
the customer under any circumstances cannot be forgotten. An entrepreneur
who is keen on updating his organization cannot fail to understand the
significance of prompt service to the customer. These facts are influential
ones in any buying centre. From the factor analysis of all the four cities in
Tamil Nadu , one can safely infer that customer orientation is the factor that
gains the recognition of being the first leading factor. And, it is almost true
of the three cities in Tamil Nadu; even where customer orientation is not the
first one, customer care takes the leading place.
If the state-of-art mechanical gadgets and compelling environment form the
body of the business, the service to the customer with equally compelling
personnel neat appearance makes the life and spirit of the business. A mere
ambience, devoid of service, will turn the shop into an exhibition of
pompousness; only service renders the ambience great shop into a source of
rich buying experience. Naturally, Service basically forms the source of the
Second factor in the factor-structure.
Service without Courteousness is nothing more than a mere
selling of a product or service; it is just a rabid exchange of money and
product. But, Courteousness of the personnel turns a business deal into a
happy event of building relationship. So, Courteousness, take the next place,
here, the third place in the current factor-series. The other factors follow
244
behind in a sequence of rather decreasing significance, at least for the
present analysis.
Market Segmentation of Supermarkets
Chennai
In order to study the market segmentation for Supermarkets in
Chennai, K-means cluster analysis is carried out and the clusters (segments)
were identified by initially looking at the distance and mean response for
each cluster across the demographic and behavioral characteristics. Table
4.39 shows the Euclidean distance between the final clusters where grater
distances between clusters correspond to greater dissimilarities. The results
show that cluster 2 and 3 are most different, while cluster 1 is approximately
similar to cluster 3.
Table 4.39 Distances between Cluster Centers
Cluster 1 2 3
1
3.845 3.817
2
3.845 6.649
3
3.817 6.649
245
The mean responses (cluster centers) of each segment on the
demographic and behavioral characteristics of customers are analyzed and
the results are presented in Table 4.40. Based on the mean values, “Money
Spent” is the most important characteristic in all three clusters. For instance,
cluster 1 respondents rated “Money Spent” as the most important attribute
with a mean of 4.33, higher than the average of 3.84. Cluster 2 respondents
rate importance of this attribute higher than the average with a mean of 4.96,
while cluster 3 respondents rate this attribute with a mean of 4.50 lower than
cluster 1.
Table 4.40 Cluster Centers
Characteristics Cluster 1 Cluster 2 Cluster 3
Sex 1.21 1.20 1.00

Age 1.48 1.46 1.50
Education 2.27 1.52 3.00
Occupation 4.39 1.01 5.32
Income 2.30 2.76 2.25
Family Cycle 2.18 3.44 2.12
Mobility 1.85 1.25 4.00
Shopping Frequency 4.27 3.99 7.00
Shop Days 2.45 2.45 2.38
Travel Distance 3.58 3.21 3.75
Time Spent 3.30 3.17 3.12
Money Spent 4.33 4.96 4.50
The clusters (segments) are labeled based on the observed and
preferred characteristics of every customer in each cluster. First because
cluster 1 comprises of customers who score the average or near the average
246
on most behavior characteristics, it is labeled as “Natural Shoppers”
segment. Customers in this segment are more shopping behavior oriented as
indicated by shopping frequency and shopping days. A close examination of
the demographic characteristics indicates that the customers included in this
cluster tend to be females, in the age group of less than20 years, graduates,
employees of government, income group of Rs. 1.21-3.00 lakh and married.
The next segment (cluster 2) is identified as “Convenient Shoppers”
because family oriented attributes are important for this segment of
shoppers. The shopping frequency and travel distance are important to this
group of customers. As for demographics, the segment consists of mostly
males, less than 20 years, school educated, owners of business, income
group of Rs. 2.01- 3.00 lakh and nuclear family with children.
Cluster 3 is identified as “Typical Shoppers” because shopping
frequency and travel distance are important for this segment. Looking at
demographics, this segment consists of male customers in the age group of
less than 20 years, post graduates, employees of MNCs, income group of
Rs. 1.21-3.00 lakh and married.
247
Coimbatore
In order to study the market segmentation for supermarkets in
Coimbatore, K-means cluster analysis is carried out and the clusters
(segments) are identified by initially looking at the distance and mean
response for each cluster across the demographic and behavioral
characteristics. Table 4.41 shows the Euclidean distance between the final
clusters where greater distances between clusters correspond to greater
dissimilarities. The results show that cluster 1 and 3 are most different, while
cluster 1 is approximately similar to cluster 2.
Cluster 1 2 3
1
1.498 3.303
2
1.498 1.805
3
3.303 1.805
demographic and behavior characteristics of customers are analyzed and the
results are presented in Table 4.42. Based on the mean values, “buying
value” is the most important characteristic in all three clusters. For instance,
cluster 1 respondents rated “Money Spent” as the most important attribute
248
with a mean of 2.86, lower than the average of 3.08. Cluster 2 respondents
while cluster 3 respondents rate this attribute with a mean of 6.17 higher
than both cluster 1 and cluster 2.
Buying Value 2.86 4.36 6.17
The identified clusters (segments) are labeled based on the observed
and preferred characteristics by each customer in each cluster. Cluster 1 is
labeled as “Low Spenders ” segment, while the segment 2 (cluster 2) was
identified as “Medium Spenders” and Cluster 3 was identified as “High
Spenders” because buying value is the only factor determining the segments
of shoppers for supermarkets.
Madurai
In order to study the market segmentation for supermarkets in
Madurai, K-means cluster analysis is carried out and the clusters (segments)
are identified by initially looking at the distance and mean response for each
cluster across the demographic and behavioral characteristics. Table 4.43
shows the Euclidean distance between the final clusters where greater
249
Cluster 1 2 3
1
3.031 5.621
2
3.031 4.444
3
5.621 4.444
the results are presented in Table 4.44. Based on the mean values, “shopping
frequency” is the most important characteristic in all three clusters. For
instance, cluster 1 respondents rated “shopping frequency’ as the most
important attribute with a mean of 4.17, lower than the average of 4.22.
Cluster 2 respondents rated importance of this attribute higher than the
average with a mean of 6.08, while cluster 3 respondents rated this attribute
with a mean of 5.47 higher than cluster 1.
250
Sex 1.22 1.17 1.73

Age 2.13 1.92 2.13
Education 2.13 1.50 2.27
Income 2.87 2.83 2.47
Mobility 3.09 1.75 2.67
Shop Days 2.52 2.33 2.47
Time Spent 2.04 1.92 2.13
Money Spent 3.13 3.83 2.60
on most behavior characteristics, it is labeled as “Natural Shoppers”
indicated by shopping during, and money spent. An examination of the
demographic characteristics indicate that the customer included in this
cluster tend to be males, in the age group of 20-34 years, profession, owners
of business, home makers, income group of Rs. 1.21-3.00 lakh and nuclear
family with children.
251
The next segment (cluster 2) is identified as “Convenience Shoppers”
because money spent and family oriented attributes are important for this
segment of shoppers. The money spent and travel distance are important to
this group of customers. As for demographics, the segment consists of
mostly males, in the age group of 20-34 years, school educated, employees
of government, income group of Rs. 3.01-5.00 lakh and nuclear family with
children.
Cluster 3 is identified as “Typical Shoppers” because ‘shopping days’
and ‘money spent’ are important for this segment. Looking at demographics,
this segment consists of female customers in the age group of 20-34 years,
graduates, home makers, income group of Rs. 1.21-3.00 lakh and married.
Trichy
In order to study the market segmentation for supermarkets in Trichy,
K-means cluster analysis is carried out and the clusters (segments) are
identified by initially looking at the distance and mean response for each
cluster across the demographic and behavioral characteristics. Table 4.45
shows the Euclidean distance between the final clusters where greater
252
Cluster 1 2 3
1
6.368 5.675
2
6.368 5.676
3
5.675 5.676
the results are presented in Table 4.46. Based on the mean values, “shopping
frequency” is the most important characteristic in all three clusters. For
instance, cluster 1 respondent’s rate “shopping frequency’ as the most
important attribute with a mean of 5.00, higher than the average of 3.24.
Cluster 2 respondents rate importance of this attribute lower than the average
with a mean of 2.72, while cluster 3 respondents rate this attribute with a
mean of 2.60 lower than both cluster 1 and cluster 2.
253
Sex 2.00 1.17 1.94

Age 1.00 1.83 1.42
Education 3.00 1.94 3.07
Income 3.00 2.17 1.55
Mobility 2.00 1.28 1.03
Shop Days 2.00 2.17 2.32
Time Spent 3.00 2.28 2.13
Money Spent 2.00 2.44 2.06
cluster 1 was comprises of customers who score the average or near the
average on most behavior characteristics. It is labeled as “Convenient
Shoppers” segment. Customers in this segment are more behavior oriented
as indicated by travel distance and time spent. A close examination of the
demographic characteristics indicate that the customer included in this
cluster tend to be females, in the age group of less than 20 years, graduates,
employees of MNCs, income group of Rs. 3.01-5.00 lakh and bachelor.
254
The next segment (cluster 2) is identified as “Natural Shoppers”
because money spent and family oriented attributes are important for this
segment of shoppers. The buying value and time spent are important to this
males, 20-34 years, graduates, owners of business, income group of Rs.
1.01-2.00 lakh and nuclear family with children.
Cluster 3 is identified as “Typical Shoppers” because shopping days,
travel distance and time spent is important for this segment. Looking at
demographics, this segment consists of female customers in the age group of
20-34 years, postgraduates, employees of private sector, income group of
less than 1.20 lakh and nuclear family with children.
Tamil Nadu
In order to study the market segmentation for supermarkets in Tamil
Nadu as whole, K-means cluster analysis is carried out and the clusters
(segments) are identified by initially looking at the distance and mean
response for each cluster across the demographic and behavioral
characteristics. Table 4.47 Shows the Euclidean distance between the final
clusters where greater distances between clusters correspond to greater
255
dissimilarities. The results showed that cluster 1 and 3 are most different,
while cluster 3 is approximately similar to cluster 2.
Cluster 1 2 3
1
4.602 5.560
2
4.602 5.313
3
5.560 5.313
the results are presented in Table 4.48. Based on the mean values, “money
spent” is the most important characteristic in all three clusters. For instance,
cluster 1 respondents rate “money spent” as the most important attribute
with a mean of 4.07, greater than the average of 3.86. Cluster 2 respondents
while cluster 3 respondents rate this attribute with a mean of 2.79 lower than
both cluster 1 and cluster 2.
256
Sex 1.65 1.20 1.63

Age 2.27 1.61 1.62
Education 3.31 1.70 2.11
Occupation 2.76 1.42 434
Income 2.35 2.62 2.03
Mobility 4.28 1.47 1.82
Shopping Days 2.30 2.41 2.40
Time Spent 3.91 2.86 2.40
Money Spent 4.07 4.36 2.79
on most behavior characteristics, it is labeled as “Convenient Shoppers”
indicated by mobility and time spent. A close examination of the
demographic characteristics indicates that the customer included in this
cluster tend to be males, in the age group of 20-34, postgraduates,
profession, income group of Rs. 1.21-3.00 lakh and bachelors.
257
The segment 2 (cluster 2) is identified as “Natural Shoppers”, because
shopping frequency, time spent and travel distance are important to this
males, less than 20 years, school educated, owners of business, income
group of Rs. 1.21-3.00 lakh and nuclear family with children.
Cluster 3 is identified as “Typical Shoppers” because shopping
frequency and travel distance are important for this segment. Looking at
demographics, this segment consists of male customers in the age group of
less than 20 years, graduates, employees of private sector, income group of
Rs. 1.21-3.00 lakh and married.
There are significant differences between the market
segmentation of the organized supermarkets.
As for Coimbatore is concerned, the ‘mean value’ arrived at,
limits itself to the only component of ‘Money Spent’. The other attributes
that are taken into consideration to classify shoppers into Natural, Typical
and Convenient shoppers are not found suitably functional. ‘Money Spent’
being the only base for categorization it is quite logical to group respondents
into Low, Medium and High Spenders.
258
A general description of the three kinds of shoppers namely,
Natural, Typical and Convenient Shoppers, seem to hold good for analysis
of the present clusters of shoppers.
Disposable income has been taken as the primary factor in
classifying the shoppers. For this present study the income categories are
classified as, less than Rs 1.2 lakhs, Rs 1.21 to 3.00 lakhs, Rs 3.01 to 5.00
lakhs and greater than Rs 5.00 lakhs. The term ‘Natural Shopper’ is not to
be misunderstood as referring to impulsive, indiscriminate spontaneous
shopper. It is meant to point out early recognition of a need, either for a
product or a service, as a matter of course, as a common condition of daily
living. To be still more precise, the recognition of a need here relates more
to the basic physiological needs than the other categories of need. The needs
that are required to keep one comfortably alive demand their early
fulfillment; they take precedence over other needs, say, needs to lead a
luxurious life of pomp and glamour. We have, under natural shoppers, only
those people who, restrained by the limited resources, focus on fulfilling
their immediate needs. Females, it is well known, always tend to be careful
with their money, their inevitable source of power, though very much
restrained. The owners of business shy away from avoidable domestic
expenses but focus on shops. Development of their business occupies their
259
mind more poignantly than domestic expenses which they feel, can be
delayed to some extent. Nuclear families with children have to be need-
conscious since their limited financial resources make them cost-conscious
from their point of view. Married people also have to be wary of excess
spending since their revenue is low. These categories of shoppers, so to say,
are classed under ‘Natural Shoppers’.
In terms of attributes, the Typical Shoppers almost share the
same qualities: limited resources, necessity-driven purchase-pattern, and
cost-consciousness. The only marginal difference between them is the
intensity of necessity that leads them to decide the final choice of needs. The
Typical Shopper will not approve of buying a product now if they can afford
to buy it after ten days. According to them, pre mature buying is a
thoughtless expenditure. The same idea can be expressed in another way as
well. A good product must be reliable, durable, aesthetically appealing and
generally satisfactory. For a Typical Shopper, being under the constraint of
low-affordability, it is but logical that they would prefer a product which is
more durable and reliable, even if its aesthetic appeal is less effective.
Whether a typical shopper is male or female, a private employee or an
employee of MNC, a graduate or a post-graduate, he cannot be free of cost-
consciousness. Continuous fulfillment of a need is universal expectation of a
260
human being. For a typical shopper, therefore, urgency of the need-
fulfillment and its consequent purchase behavior are the common attributes.
As mentioned earlier, higher disposable income characterizes
the convenient shoppers. It is the group of shoppers who are readily prone to
changing to a better life-style. In fact, any business to continue to develop
must focus on the group of aspirants to a higher-lifestyle. Product
diversification and service sophistication owe their existence primarily to
convenient shoppers. They can buy to their needs, but also they can buy and
do buy beyond their needs. In other words, again to exploit Abraham
Maslow’s insight into human needs, they seek satisfaction of these basic
needs, and, they are concerned with self-esteem needs as well; that is, they
care for social accreditation that they can move, with ease, to a more
sophisticated life-style. It is a common experience one comes across with the
bachelors. A bachelor, generally, even with a relatively low-income gives
greater credit to his social-status, that is, he attends to the fact of other’s
perception about him. Therefore social recognition influences his buying
behavior which resembles the Convenient Shoppers. It is not only economic
convenience, but also psychological convenience and comfort that bring him
under Convenient Shoppers.
261
This chapter on Supermarkets in Tamil Nadu deals with the Analysis
of the profile of the consumers, the Shopping pattern and their behavior.
Nilgiris and Reliance Fresh are top ranking among the Supermarkets
shopped by the consumers. The customers’ satisfaction level of the
Supermarkets, the preferences and the perception of the customers towards
Supermarkets are studied. The factors influencing the consumers’ choice of
Supermarkets are arrived for Tamil Nadu. The following six factors
namely Customer Focus, Layout and Private labels, Location and
Branding, Billing Efficiency, Display and Status, and Quality and Value are
identified as the most important factors generally for Tamil Nadu.The
importance of Service Quality level using the ‘SERVQUAL MODEL’ is
used to assess the Service Quality in the Supermarkets. The cluster analysis
is used to classify the customers as Convenient Shoppers, Natural Shoppers
and Typical Shoppers.
262

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CHAPTER IV

SUPERMARKETS IN TAMIL NADU

A Supermarket is a large low cost, low margin, high volume self

everyday commodities. Internationally, the size of these stores varies from

in India. Examples of supermarkets in the Indian market scenario are

Profile of the Customers of Supermarkets in Tamil Nadu

The demographic profile of the shoppers in Supermarkets are

analyzed with respeJct to variables such as Sex, Age, Education,

Occupation, Income, Family Cycle, Ownership of Assets, and Mobility as

Table 4.1 Frequency Distribution of Sex of Respondents

Sex Chennai Coimbatore Madurai Trichy Tamil Nadu

Male 101 49 32 17 199

Note: The figures in the parentheses are per cent to total.

respondents vary from 101 in Chennai to 17 in Trichy while the female

respondents range from 26 in Coimbatore to 18 in Madurai.

50-60 years varies from 13 in Coimbatore to 2 in both Chennai and Trichy,

Table 4.2 Frequency Distribution of Age of Respondents

Age Chennai Coimbatore Madurai Trichy Tamil Nadu

The frequency distribution of educational qualifications of the respondents

professionals (5.33 per cent).

The number of respondents of school educated varies from 45

in Chennai to 8 in Trichy whereas the graduates range from 63 in Chennai to

24 in Madurai. The number of post graduates range from 23 in Coimbatore

to 4 in Trichy whereas the professionals vary from 6 in Coimbatore to 5 each

in both Chennai and Madurai.

The frequency distribution of occupation of the respondents in Tamil

multi-national corporation(7.67 per cent), professionals(6.00 per cent),

pensioners(1.67 per cent).

Table 4.4 Frequency Distribution of Occupation of the Respondents

Occupation Chennai Coimbatore Madurai Trichy Tamil Nadu

Total 125 75 50 50 300

The number of respondents owning business is ranging from 83

in Chennai to 13 in Trichy while the number of professionals varies from 9

in Madurai to 1 in Chennai. The number of the employed in government

while the number of those in private services vary from 29 in Coimbatore to

The employees in multi-national corporations are 10 in Coimbatore

but 1 in Trichy while the pensioners are 3 in Madurai compared to 2 in

Chennai and Coimbatore(1). The students are maximum in Coimbatore and

Trichy(5) and minimum in Chennai(3).

Table 4.5 Frequency Distribution of Annual Income of Respondents

Total 125 75 50 50 300

Rs. 3.10-5.00 lakh followed by Rs. 1.20-3.00 lakh income-group (39.37per

The number of respondents belonging to the income group of Rs.less

group of Rs. 1.20-3.00 lakh varies from 52 in Chennai to 15 in Madurai.

The income group of Rs.3.01-5.00 lakh varies from 55 in Chennai to 5 in

5.00 lakh decreases from 13 in Chennai to 2 in Trichy.

The frequency distribution of family cycle of respondents in Tamil

cent).The bachelor/ spinster ranges from 29 in Coimbatore to 5 in Trichy

while married number varies from 46 in Chennai to 2 in Madurai. The

Coimbatore to 7 in Chennai and that of the married with children-joint

family ranges from 63 in Chennai to 9 in Coimbatore.

Table 4.6 Frequency Distribution of Family Cycle of Respondents

Family Cycle Chennai Coimbatore Madurai Trichy Tamil

The frequency distribution of ownership of assets in Tamil Nadu has

followed by two wheeler owners making up (95.34 per cent), house/flat

only(33.33 per cent).

Table 4.7 Frequency Distribution of Ownership of Assets of

Assets Chennai Coimbatore Madurai Trichy Tamil

45 in Madurai. The ownership of car moves from 75 in Chennai to 20 in

ownership changes between 125 in Chennai and 45 in Madurai. The

ownership of laptop ranges from 75 in Chennai to 20 in Coimbatore,

Chennai and 10 in Madurai .

Table 4.8 Frequency Distribution of the Mobility of the Respondents