Вы находитесь на странице: 1из 94

1

QUESTIONNAIRE

General Information

Name: _______________________________ Age: ______ Gender: Male


Female
Address:
_________________________________________________________________
__
______________________________________Contact Number:
______________________
Occupation: __________________________________
Annual Income:
Below Rs. 120,000 Rs. 120,000 - Rs. 320,000

Rs. 320,000 – Rs 500,000 Above Rs. 500,000

1. How frequently you buy kid’s products?

Everyday Weekly

Monthly Yearly

2. Where do you usually go?

Exclusive Kid’s Store Malls

Convenience Stores General stores

3. You generally buy?


2

Toys Kid’s wear

Rhymes/Books Kid’s Food

If any other specify..............................

4. How much do you spend on kid’s products?

Below Rs.500 Above Rs.500

Above Rs.1000 Above Rs.2500

5. Do you like Experimenting (trying out new places)?

Yes No

6. What are your buying preferences?

Retail Wholesale
Appleofmyi
1. Have you been to Appleofmyi?

Yes No

2. How often do you visit Appleofmyi?


Every day 2-4 times a week

Once in a month Once in a year

3. How much do the communication tools like newspaper, TV, media


influence you?

Excellent Good

Fair Poor

4. How likely are you to suggest the store to your friends?

Excellent Good
3

Fair Poor

5. Do you like to bring your kid(s) when you shop here?

Yes No

6. What type of promotions influence you to buy from Appleofmyi?

Coupon Bonus packs

Price-offs Contests

7. How likely are you to repurchase products from Appleofmyi?

Excellent Good

Fair Poor

8. What do you like the most in Appleofmyi?

Ambience Products \

Customer Service Promotions/Events

9. How did you learn about Appleofmyi?

Television Newspaper /Magazines

Internet Friends
10. Was the advertisement appealing?

Yes, Reason (Product/Price/Discount/Brand, Endorser)

No, Reason (Product/Price/Discount/Brand/Endorser)

1-Highly Satisfied 2-Satisfied 3-Neutral

4-Dissatisfied 5-Highly Dissatisfied


11. Are you satisfied with the accessibility of the store?
1 2 3 4
5
4

12. Are you happy with the value you get for your money?
1 2 3 4
5

13. Are you satisfied with the product availability?


1 2 3 4
5

14. Are you satisfied with the brands sold in Appleofmyi?


1 2 3 4
5

15. Are you satisfied with the way the products are organised in the store?
1 2 3 4
5

16. Are you satisfied with Appleofmyi with respect to price?


1 2 3 4
5

17. Are you satisfied with Appleofmyi’s customer service?


1 2 3 4
5

18. Are you satisfied with the store layout and ambience?
1 2 3 4
5

19. How satisfied are you with the store overall?


1 2 3 4
5

20. What are the factors you consider important when visiting Appleofmyi?
Very Important Neutral Not
Important Important
Product assortment
Price
Quality
Discounts
Kid’s
5

Events/Activities
Waiting time
Service
Convenience

21. Your suggestions


___________________________________________________________
__________
___________________________________________________________
__________

********
Abstract
********
6

********
Introduction
********
7

********
Company Profile
********
8

********
Objective of the
Study
********
9

********
Scope of the study
********
10

********
Limitations of the
study
********
11

********
Review of
Literature
********
12

********
Theoretical
Perspective
********
13

********
Research
Methodology
********
14

********
Analysis &
Interpretations
********
15

********
Findings
********
16

********
Suggestions
********

********
17

Conclusions
********

********
Appendices
18

********

********
Bibliography
********
19

A Study on Customer Contentment towards


Appleofmyi, a one-stop retailer, Bangalore

PROJECT REPORT

Submitted by

SOURABH KUMAR

Reg. No: 088001107051

in partial fulfillment for the award of the degree


of

MASTER OF BUSINESS ADMINISTRATION

HINDUSTHAN COLLEGE OF ENGINEERING AND


20

TECHNOLOGY
COIMBATORE – 641 032

MAY 2010
HINDUSTHAN COLLEGE OF ENGINEERING
AND TECHNOLOGY
COIMBATORE – 641 032
DEPARTMENT OF MANAGEMENT STUDIES

PROJECT WORK
MAY 2010

This is to certify that the project entitled

A STUDY ON CUSTOMER CONTENTMENT


TOWARDS APPLEOFMYI, A ONE STOP RETAILER,
BANGALORE
is the bonafide record of project work done by

SOURABH KUMAR
Reg. No: 088001107051
of MBA during the year 2009-2010
21

___________________________
______________________________
Ms. Mehta Vani Joghee, MBA, M.Phil Mr. K. R. Shoban, B.Com,
MBA,
Faculty Guide PGDPMIR, DMMTLM,
NET, SLET
HOD
Submitted for Project Viva-Voce examination held on:
________________

________________
_________________
Internal Examiner External
Examiner

Letter from company


22

DECLARATION

I affirm that the project work titled ”A Study on Customer Contentment towards

Appleofmyi, a one-stop retailer, Bangalore”, submitted in partial fulfillment for


23

the award of the Degree of MBA is a record of original work done by. It is not

formed the part of any other project work submitted for award of any degree or

diploma, either in this or any other University

Sourabh Kumar

088001107051

I certify that the declaration made above by the candidate is true

Ms. Mehta Vani Joghee, MBA, M.Phil.

Lecturer

ACKNOWLEDGEMENT
24

I thank the Lord Almighty for having bestowed his blessings on me to

complete this project work.

I am indebted to our Chairman, Thiru.T.S.R.Khannaiyan and Managing

Trustee Mrs.Saraswathi Khannaiyan for providing excellent learning environment

at Hindusthan College of Engineering and Technology.

My sincere thanks are due to our beloved Principal Dr.V.Duraisamy, M.E,

Ph.D, for his support and encouragement.

I take this opportunity to thank Mr. K. R. Shoban, B.Com, MBA,

PGDPMIR, DMMTLM, NET, SLET, HOD, Department of Management

Studies, Hindusthan College of Engineering and Technology, for providing

support to do this project.

I would like to express my gratitude to Ms Mehta Vani Joghee, MBA,

M.Phil, Lecturer, Department of Management Studies, Hindusthan College of

Engineering and Technology, for her valuable suggestion and guidance in the

process of completing this project. I also thank the other faculty members for their

help and support.

I like to express my gratitude to Mr. Kali Charan Shukla and Mr. Vijay

Jumani, Director, Inventis Retail, under whose valuable guidance the project

work was done.

My special thanks to my parents, friends and well-wishers for the moral

support throughout the project.


25

Sourabh Kumar

CONTENTS

Description Page Number


Acknowledgement v

List of Tables vii

List of Figures viii

Abstract ix

1. Introduction 1

1.1 About the Industry 1

1.2 About the Company 8

1.3 Objective 9

1.4 Scope 10

1.5 Limitations 11

1.6 Review of related Literature 12

2. Theoretical Perspective of Customer Contentment 13

3. Research Methodology 23

4. Analysis and Interpretation 27

5. Findings, Suggestions and Conclusions 56

Appendices
26

Bibliography

List of Tables:

Table Title Page


No No
1 Frequency of customer visiting the store 25

2 Influence of communication tools on customer 26

3 Likeliness of customer to suggest the store to friend 27

4 Promotions that influence customer to buy 28

5 Likeliness of customer to repurchase from the store 29

6 The factor liked most by the customer in the store 30

7 How customer learnt about the store 31

8 If the customer found the advertisement appealing 32

9 If the customer liked to bring kids to store 33

10 Customer satisfaction with accessibility of the store 34

11 Customer satisfaction for money spent 35

12 Customer satisfaction with Product availability 36

13 Customer satisfaction with brands sold 37

14 Customer satisfaction with Product organization 38

15 Customer satisfaction with Pricing of the store 39


27

16 Satisfaction with Customer service 40

17 Customer satisfaction with Layout and ambience 41

18 Overall Customer satisfaction of the store 42

Relationship between Annual income and promotion activity 43


19
preferred
20 Relationship between promotion and frequency of shopping 45

Relationship between Annual income and the frequency of 47


21
shopping
22 Relationship between customer service and overall satisfaction 49

Relationship between Annual income and amount spent on kid’s 51


23
product

List of Charts

Table Title Page


No No
1 Frequency of customer visiting the store 25

2 Influence of communication tools on customer 26

3 Likeliness of customer to suggest the store to friend 27

4 Promotions that influence customer to buy 28

5 Likeliness of customer to repurchase from the store 29

6 The factor liked most by the customer in the store 30

7 How customer learnt about the store 31

8 If the customer found the advertisement appealing 32

9 If the customer liked to bring kids to store 33

10 Customer satisfaction with accessibility of the store 34


28

11 Customer satisfaction for money spent 35

12 Customer satisfaction with Product availability 36

13 Customer satisfaction with brands sold 37

14 Customer satisfaction with Product organization 38

15 Customer satisfaction with Pricing of the store 39

16 Satisfaction with Customer service 40

17 Customer satisfaction with Layout and ambience 41

18 Overall Customer satisfaction of the store 42

ABSTRACT

Increasing competition is forcing businesses to pay much more attention to


satisfying customers. Customer contentment is a measure of how products and
services supplied by a company meet or surpass customer expectation. It is seen
as a key performance indicator within business. Customer contentment is seen as
a key differentiator and increasingly has become a key element of business
strategy.
This project studies the various parameters that lead to customer
contentment and ultimately increase the overall sales. Organizations need to retain
existing customers while targeting non-customers. Measuring customer
29

contentment provides an indication of how successful the organization is at


providing products and/or services to the marketplace.
This project also analyses the various deciding factors for the customer to
repurchase from the store and to recommend it to others. This study also focuses
on measurement of customer contentment related to Service rendered at
Appleofmyi.
Questionnaires were filled by the customers who shopped in the store.
Depending on the feedback given by them through the questionnaire, the likes and
the dislikes of the customers were found and analyzed. After detailed analysis
measures were taken to improve the areas where the level of customer
contentment was less and also to improve the overall sales of the store.
Other statistical tests like chi-square tests were done to find the
relationship between things like annual income and frequency of shopping,
customer service and overall contentment, annual income and money spent on
kid’s product and so on.

Chapter 1
1.1 About the Industry

Retailing consists of the sale of goods or merchandise from a very fixed


location, such as a department store, boutique or kiosk, or by mail, in small or
individual lots for direct consumption by the purchaser. Retailing may include
subordinated services, such as delivery. Purchasers may be individuals or
businesses. In commerce, a "retailer" buys goods or products in large quantities
from manufacturers or importers, either directly or through a wholesaler, and then
sells smaller quantities to the end-user. Retail establishments are often called
shops or stores. Retailers are at the end of the supply chain.
Manufacturing marketers see the process of retailing as a necessary part of their
30

overall distribution strategy. The term "retailer" is also applied where a service
provider services the needs of a large number of individuals, such as a public
utility, like electric power.

Shops may be on residential streets, shopping streets with few or no


houses or in a shopping mall. Shopping streets may be for pedestrians only.
Sometimes a shopping street has a partial or full roof to protect customers
from precipitation. Online retailing, a type of electronic commerce used
for business-to-consumer (B2C) transactions and mail order, are forms of non-
shop retailing.

Shopping generally refers to the act of buying products. Sometimes this is


done to obtain necessities such as food and clothing; sometimes it is done as
a recreational activity. Recreational shopping often involves window shopping
(just looking, not buying) and browsing and does not always result in a purchase.

Etymology

Retail comes from the French word retailer, which refers to "cutting off,
clip and divide" in terms of tailoring (1365). It first was recorded as a noun with
the meaning of a "sale in small quantities" in 1433 (French). Its literal meaning
for retail was to "cut off, shred, paring”. Like the French, the word retail in both
Dutch and German, also refers to the sale of small quantities of items.

Merchandising (merchandizing)

It is defined as sales promotion as a comprehensive function including


market research, development of new products, coordination of manufacture and
marketing, and effective advertising and selling.

Retail pricing
31

The pricing technique used by most retailers is cost-plus pricing. This


involves adding a markup amount (or percentage) to the retailer's cost. Another
common technique is suggested retail pricing. This simply involves charging the
amount suggested by the manufacturer and usually printed on the product by the
manufacturer.

Transfer mechanism

There are several ways in which consumers can receive goods from a
retailer:

Counter service, where goods are out of reach of buyers and must be obtained
from the seller. This type of retail is common for small expensive items (e.g.
jewelry) and controlled items like medicine and liquor. It was common before the
1900s in the United States and is more common in certain countries.

Delivery (commerce), where goods are shipped directly to consumer's homes or


workplaces. Mail order from a printed catalog was invented in 1744 and was
common in the late 1800s and early 1900s. Ordering by telephone is now
common, either from a catalog, newspaper, television advertisement or a local
restaurant menu, for immediate service (especially for pizza). Direct marketing,
including telemarketing and television shopping channels, are also used to
generate telephone orders. Online shopping started gaining significant market
share in developed countries in the 2000s.

Door-to-door sales, where the salesperson sometimes travels with the goods for
sale.

Self-service, where goods may be handled and examined prior to purchase, has
become more common since the 1920s.

Second hand retail


32

Some shops sell second-hand goods. In the case of a nonprofit shop, the
public donates goods to the shop to be sold. In give-away shops goods can be
taken for free. Another form is the pawnshops, in which goods are sold that was
used as collateral for loans. There are also "consignment" shops, which are where
a person can place an item in a store and if it sells, the person gives the shop
owner a percentage of the sale price. The advantage of selling an item this way is
that the established shop gives the item exposure to more potential buyers.

Discount stores

Discount stores offer a wide range of products, although they mainly offer
value goods, such as house wares, clothes, kitchen-wares, gifts and healthcare
products. The products in discount stores have low price points because they are
purchased in large quantities, they are manufactured inexpensively, they
are generic brands or store brands, or they are part of clearance with diminished
value to manufacturers or other retail chains.

In the U.S. most of the largest discount store chains are public companies,
not privately owned because the equity financing allows the retail company to
expand its chain, increasing their purchasing power and strengthening their ability
to provide discount pricing.

Sales techniques

Behind the scenes at retail, there is another factor at work. Corporations


and independent store owners alike are always trying to get the edge on their
competitors. One way to do this is to hire a merchandising solutions company to
design custom store displays that will attract more customers in a certain
demographic. The nation's largest retailers spend millions every year on in-
store marketing programs that correspond to seasonal and promotional changes.
As products change, so will a retail landscape. Retailers can also
33

use facing techniques to create the look of a perfectly-stocked store, even when it
is not.

A destination store is one that customers will initiate a trip specifically to


visit, sometimes over a large area. These stores are often used to "anchor" a
shopping mall or plaza, generating foot traffic, which is capitalized upon by
smaller retailers.

Customer service

According to the book "Discovery-Based Retail" customer service is the


"sum of acts and elements that allow consumers to receive what they need or
desire from your retail establishment."

The retail industry is divided into organised and unorganised sectors. Over
12 million outlets operate in the country and only 4% of them being larger than
500 sq ft (46 m2) in size. Organised retailing refers to trading activities
undertaken by licensed retailers, that is, those who are registered for sales tax,
income tax, etc. These include the corporate-backed hypermarkets and retail
chains, and also the privately owned large retail businesses. Unorganised
retailing, on the other hand, refers to the traditional formats of low-cost retailing,
for example, the local kirana shops, owner manned general stores, paan/beedi
shops, convenience stores, hand cart and pavement vendors, etc.
Most Indian shopping takes place in open markets and millions of
independent grocery shops called kirana. Organized retail such supermarkets
accounts for just 4% of the market as of 2008. Regulations prevent most foreign
investment in retailing. Moreover, over thirty regulations such as "signboard
licences" and "anti-hoarding measures" may have to be complied before a store
34

can open doors. There are taxes for moving goods to states, from states, and even
within states.

Growth
An increasing number of people in India are turning to the services sector
for employment due to the relative low compensation offered by the traditional
agriculture and manufacturing sectors. The organized retail market is growing at
35 percent annually while growth of unorganized retail sector is pegged at 6
percent.
The Retail Business in India is currently at the point of inflection. Rapid
change with investments to the tune of US $ 25 billion is being planned by several
Indian and multinational companies in the next 5 years. It is a huge industry in
terms of size and according to management consulting firm Technopak Advisors
Pvt. Ltd., it is valued at about US $ 350 billion. Organised retail is expected to
garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the
next 5 years.
India has topped the A.T. Kearney’s annual Global Retail Development
Index (GRDI) for the third consecutive year, maintaining its position as the most
attractive market for retail investment. The Indian economy has registered a
growth of 8% for 2007. The predictions for 2008 is 7.9%. The enormous growth
of the retail industry has created a huge demand for real estate. Property
developers are creating retail real estate at an aggressive pace and by 2010, 300
malls are estimated to be operational in the country.
With over 1,000 hypermarkets and 3,000 supermarkets projected to come
up by 2011, India will need additional retail space of 700,000,000 sq ft
(65,000,000 m2) as compared to today. Current projections on construction point
to a supply of just 200,000,000 sq ft (19,000,000 m2), leaving a gap of
35

500,000,000 sq ft (46,000,000 m2) that needs to be filled, at a cost of US$15–18


billion.
According to the Icrier report, the retail business in India is estimated to
grow at 13% from $322 billion in 2006-07 to $590 billion in 2011-12. The
unorganized retail sector is expected to grow at about 10% per annum with sales
expected to rise from $ 309 billion in 2006-07 to $ 496 billion in 2011-12.

The Indian Retail Market


Indian market has high complexities in terms of a wide geographic spread
and distinct consumer preferences varying by each region necessitating a need for
localization even within the geographic zones. India has highest number of outlets
per person (7 per thousand) Indian retail space per capita at 2 sq ft (0.19 m2)/
person is lowest in the world Indian retail density of 6 percent is highest in the
world. 1.8 million households in India have an annual income of over 45 lakh.
Delving further into consumer buying habits, purchase decisions can be
separated into two categories: status-oriented and indulgence-oriented.
CTVs/LCDs, refrigerators, washing machines, dishwashers, microwave ovens and
DVD players fall in the status category. Indulgence-oriented products include
plasma TVs, state-of-the-art home theatre systems, iPods, high-end digital
cameras, camcorders, and gaming consoles. Consumers in the status category buy
because they need to maintain a position in their social group. Indulgence-
oriented buying happens with those who want to enjoy life better with products
that meet their requirements. When it comes to the festival shopping season, it is
primarily the status-oriented segment that contributes largely to the retailer’s cash
register.
While India presents a large market opportunity given the number and
increasing purchasing power of consumers, there are significant challenges as
well given that over 90% of trade is conducted through independent local stores.
36

Challenges include: Geographically dispersed population, small ticket sizes,


complex distribution network, little use of IT systems, limitations of mass media
and existence of counterfeit goods

Challenges
To become a truly flourishing industry, retailing needs to cross the
following hurdles:
• Automatic approval is not allowed for foreign investment in retail.
• Regulations restricting real estate purchases, and cumbersome
local laws.
• Taxation, which favours small retail businesses.
• Absence of developed supply chain and integrated IT management.
• Lack of trained work force.
• Low skill level for retailing management.
• Lack of Retailing Courses and study options
• Intrinsic complexity of retailing – rapid price changes, constant
threat of product obsolescence and low margins.

1.2 About the Company


Inventis Retail was founded in the year 2006 with the goal of developing
innovative specialty retail concepts to serve need gaps faced by discerning
customers. Appleofmyi is the first initiative from Inventis. Inventis is currently in
expansion mode and is looking to add more stores in newer geographies
37

Appleofmyi opened its first store in Indira Nagar, Bangalore, India in


December 2006. Since then, it has served a number of customers with exciting
products and services. It has now expanded to include a second store in Bangalore
and also established an internet presence. The store concept was developed with
the objective of creating a one-stop shop for expecting moms and kids in the 0-6
age group. Appleofmyi’s focus has been to bring fun, developmental, wellness,
and utility oriented products and services for its customers under one roof, while
providing an international shopping experience. We maintain a special focus on
training our staff to help customers make informed purchase decisions. Since it’s
opening, Appleofmyi has become a popular choice for expecting and young
parents
The leadership team of Appleofmyi has deep and relevant experience in
consumer-oriented businesses and more specifically in Retail. The team includes
professionals with diverse experience in Marketing, Finance and Operations from
prestigious business organizations. The team is united by its passion to serve
customers and their unique needs in a personalized fashion.

1.3 Objectives of the Study

• To study customer contentment towards the one-stop kid’s retailing store

Appleofmyi.
38

• To study customer preferences with respect to brand and price.

• To study the effect of advertisement and promotion on the customer.

• To analyse and find the factors that influences the customer while buying.

• To provide the store with a better understanding of how consumer’s

choice of goods can affect their sales.

1.4. Scope of the study

• This study will show the overview of customer contentment of the store

Appleofmyi.
39

• The study is to analyze the effectiveness of retailing strategies of the store.

• The study would also help in finding how customer contentment can affect

overall sales

• The study will also help in finding if there is an effect on sales due to

promotion activities
40

1.5 Limitations of study

• The time duration is a major constraint for the study.

• The respondents may skip some crucial questions

• Due to their busy schedule some customers could not give answers to all

the questions in the questionnaire.


41

1.6 Review of literature

Consumer Satisfaction/Dissatisfaction
By Reginald M. Peyton, Sarah Pitts, Rob H. Kamery
This paper presents a review of theoretical bases of the research in the area
of consumer satisfaction, the paper also addresses the major elements of the most
widely accepted models of Customer satisfaction and dissatisfaction. It also
presents a review of the literature prior to the 1990s on the family decision-
making process. This review focuses on the major components of the decision-
making process.

The relationships of customer satisfaction, customer loyalty, and profitability


By Roger Hallowell
This paper’s purpose is to illustrate the relationship of profitability to
intermediate, customer-related outcomes. Its findings support the theory that
customer satisfaction is related to customer loyalty, which in turn is related to
profitability

Defining Consumer Satisfaction


By Joan L. Giese, Joseph A. Cote
This research suggests a definitional framework of consumer satisfaction
based on commonalities in the literature and the views of consumers. It discusses
how this framework can be used to develop a definition of satisfaction to
accommodate different contextual setting and ensure that our definitions of
satisfaction are consistent with consumers' views.
42

Chapter 2
Theoretical perspective of Customer Contentment
2.1 Introduction to Customer Contentment
Exclusive Kid’s stores may be a comparatively recent phenomenon in
India, with a specially created ambience making shopping an experimental affair.
Indeed, we are even beginning to demand places where we can avail the luxuries
of spending the whole day in one place, taking advantage of a bouquet of services
in which shopping is only a part. So you can browse, window shop, make
purchases, break off for a meal, take in some entertainment, and listen to music.
This concept of organized retail marketing, which has caught on like lightning, is
really just the creation of a distribution network that cuts out various intermediary
costs and creates a much smoother interface between manufacturer and customer.
This organized network which bridges the distance between the manufacturer and
the consumer has seen many of the world's leading entrepreneurs successfully
walk down a particularly profitable road is called one-stop retailing. With total
sales soaring up, the industry today is the world's largest private industry and
accounts for over 8 per cent of the GDP in western countries. And now, it's India's
turn. Today, we stand at the crossroads of a retail revolution. After 50 years of
unorganized retailing and fragmented stores with very basic offerings, fixed
prices, zero usage of technology and little or no ambience the industry have
finally begun to move towards modernization, systematization and consolidation.
Retailing has now become a key growth area. There has been an attitude
change in the way the Indian consumer thinks about shopping. Over the last
decade, there has been a significant evolution in the way people shop. Earlier, it
was the lack of consumer culture along with low incomes that prevented the
development of elaborate shopping. But economic growth has now triggered off a
spending spree, with India's middle and high-in-come population suddenly
43

realizing that they have enough disposable income to go for the good times. The
early indicators of this revolution are the mushrooming of better quality retail
outlets, a profusion of brands and various product options. The Indian consumer
who can discern a clear value propositions and unbeatable ranges at unbeatable
prices served to him on a platter. The retail industry is now beginning to evolve.
Traditionally, most retailers have very localized operations but this nature of the
industry is fast changing with the awareness that sources must be developed and a
proper merchandising system put in place. The pace of transformation has
accelerated and today India has over 12 million retail outlets. As a phenomenon,
retail marketing has a radical impact and can bring in new technologies, systems
and mindsets. It can improve overall labour, productivity and employment, all in
the name of providing the consumer with a better range of products at better
prices in a better ambience.
Retail, India's largest industry is driven by the markets' ability to provide
better products in a comfortable ambience at affordable prices. The growth of
large multi-brand kid’s product outlets is one result. These outlets are usually
20,000-50,000 sq ft in size, have their own parking space, and separate counters
for toys, accessories, kid's wear, books, footwear and music/rhymes. Some of
these retailers have begun to develop a private label brand, to supplement their
range and improve their margins. These have become significant brands in their
own right. Similar departmental stores/multi brand outlets are likely to develop
into a significant format in the Indian market over the next decade. The players
who can make organized retailing an integral part of India will be the ones who
reap the benefits at the end of the change process. The industry however will have
to work in tandem with the government and manufactures to build a more positive
environment for retail and cater to the demand for better products and retailing
from India's first generation of demanding cash rich consumer.
44

There was a time when children were not spoken of as spenders or


customers. But, today, children are viewed as a viable market by many
manufacturers and retailers. Potentially, children constitute the most lucrative
market there is for many businesses. Children are a future market for most goods
and services. Manufacturers and retailers respond to them as future consumers to
be cultivated now. Kid’s stores have special promotions for children - a sci-fi
Saturday, for example - to build store awareness for the day when they begin to
buy their own clothes. Children also persuade their parents to buy things they
desire.
The implementation of such a retail marketing strategy yields benefits for
consumers, manufacturers and wholesalers and creates economic utility. The first
point under retailing benefits for customers, bulk breaking refers to the act of
retailers of buying goods in large quantities and then breaking them into smaller
sizes for their individual customers. As a result purchases become convenient for
customers - in terms of quantity bought as well as expenditures made. The
assorting function is nothing but evaluating all the different products available
and offering to the target the optimum array of products from which to choose.
The storing function performed by the retailers relieves customers of the task of
anticipating their desires too far in advance of their needs as the retailers keep
goods in inventory until customers are willing to buy and use them. Further,
retailers help manufacturers smoothen the production cycle by placing orders for
peak demands well in advance and by managing inventory even on behalf of the
manufacturer. They create economic utility for consumers by providing the
products in the form and at the place and time desired by the consumer.
45

2.2 Need for Customer Contentment

The age of mass production and mass distribution welcomed by most


customers and organizations, has had one negative consequence, it has distanced
those who produce goods and services from those who consume them. In the era
preceding mass distribution, producers found out very quickly how satisfied or
dissatisfied their customers were in the course of their frequent and necessary
interaction with their customer. This face-to-face interaction reminded the
producers’ daily of the sovereignty of customers. The feedbacks were readily
accepted from the customers and were adopted for making desired changes to
improve their services and improve customer contentment. So customer
contentment was a daily phenomenon.
Enter the era of mass distribution and the channels of distribution created to
disseminate products and services. This has resulted in distancing customers from
the producers by the distribution channels. Intermediary institutions maintained
this pipeline of products and services whose job was to move the product or
services from the producer to end customers. A natural reaction for the producers
was to give up or delegate responsibility for customers servicing, depending on
newly created intermediaries to look after customer’s contentment. Delegating
responsibilities was a bad idea in two respects: first, it eliminated once and for all
direct interaction with customers. Second, customer became a missing component
in the producers’ decision set.
46

2.3 Importance of Customer Contentment

Differentiation strategy: -
Contentment is quickly becoming the key to competitive posture within an
industry. Initially, products or services secure life in the market by fulfilling a
basic need. But only offering minimal functionality grants a product nothing than
a commodity status. To ensure long-term market success, businesses have created
brands. Brands allowed businesses to develop and sustain an image,
differentiating one another’s products in the eyes of customer. Today most
companies are leveraging branding to its maximum benefit.
To further differentiate brands, customer contentment is the most likely next
strategy. Companies are realizing that the brand that best satisfies its customers
not only keeps them longer, but also benefits from positive word of mouth.

Improved profitability: -
There is both an intuitive belief and empirical evidence that improved
customer contentment will increase organizational profitability.

Improved customer retention: -


Satisfaction extends customer lifetimes and lifetime values. Also focusing
on satisfaction helps to estimate negative word of mouth of dissatisfied customers.
Losing a not satisfied customer is more severe than it sounds because one
dissatisfied customer may speak to as many as nine others, increasing its
dissatisfaction by nine folds.
47

Improved market share: -


There are always four sources of business for a firm. Four sources of
customers in any purchase decision have been identified as: retained customers,
customers switching from competition, customers new to the category and
customers leaving the category. Different probabilities of success are associated
with each of these four classes of customers because retained customers exhibit
probability for additional business, they deserve more attention and focus than
they currently receives.
48

Customer Contentment has long reaching impact on the current and perhaps
future viability of an organization. The cycle suggests that satisfied customers
tolerate higher margins that can be used to better pay employees. This boosts
employee morale, reducing employee turnover, which in turn helps to produce
more satisfied customers and so on.

2.4 Roles of customer contentment measurement:

Information:
The primary intention for measuring customer contentment is to collect
information regarding either what customers report needs to be changed ( in a
product , service , or delivery system ) or to assess how well an organization is
currently delivering on its understanding of these needs. This is an informational
role. As such, marketing research and psychological measurement have much
relevance.

Communication:
The very act of surveying customers conveys a very positive message; the
organization is interested in its customers’ well-being, pleasures, and displeasures.
While this is admittedly a “marketing message “, there is nothing wrong in
allowing a survey to serve both the informational and communication roles.
Thus the image of the organization in the customers mind regarding its
offerings becomes the reality related to its products and services offered. The
following diagram describes the factors necessary to achieve customer
contentment
49

It is not possible to achieve 100% customer contentment ever. Reason


being simple that every time the organization tries to meet the customers’
expectation, the level of expectation increases next time thus there is always some
gap between the two. The organization can at least try to always keep on meeting
or staying close to customer expectations so that the gap between the service
expected and actually delivered doesn’t increases leading to dissatisfaction
There is always some gap between what is expected and what is actually
delivered, thus customer contentment measurement process is dynamic and not
static, thus it should be practiced on a continuous basis for future improvements.
It’s the responsibility of the management to take the initiative and measure
the customer contentment but it is the responsibility of the whole organization to
manage and improve.
50

A naïve view of business might suggest that profit is the appropriate goal
of an organization, which is a very shortsighted view. From a practical viewpoint,
the primary goal of an organization has to be customer retention. Only with a
steady base of customers can an organization hope to make a profit. And only by
first satisfying customers can a business ever hope to retain its current customers.
51

Thus the organization should take the initiative to reach out to its
customers for the valuable feedback related to its products and services offered.
The feedback given should be analyzed thoroughly to measure customer
contentment; this process should be repeated after a pre decided gap of time frame
not only to measure but also to improve customer contentment in long run.
The ultimate goal of any organization should be to position itself as a better
product and service offering organization through continuous measurement and
management of customer contentment.
52

Chapter 3
Research Methodology
3.1 Introduction
Research is a scientific and systematic search for pertinent information on
a specific topic. Research is an art of scientific investigation. According to
Clifford Woody, “Research comprises defining and redefining problems,
formulating hypothesis or suggested solutions, collecting, organizing and
evaluating data, making deductions and reaching conclusions and at last carefully
testing the conclusions to determine whether they fit the formulating hypothesis”.

3.2 Research design


Research design aids the researcher in the allocation of limited resources
by posing crucial choices in methodology.
Research design is the plan and structure of investigation so conceived as
to obtain answers to research questions. The plan is the overall scheme or
program of the research. It includes an outline of what the investigator will do
from writing hypothesis and their operational implications to the final analysis of
data.
Descriptive research design
The design for this study is descriptive research design. This design was
chosen as it describes accurately the characteristics of a particular system as well
as the views held by individuals about the system.
53

3.3 Sampling techniques


The sampling technique adopted for the purpose of the study is
convenience sampling.
Sample size
The sample size of the study is 105.

3.4 Data collection

Primary source:
The primary source of data for the study is collected by Questionnaire.

Secondary source:
The secondary source of information is based on the various details
retrieved from Journals, Websites and Magazines.

3.5 Tools of the study

3.5.1 Tool used for data collection:


The tool used for collecting the data is through the questionnaire.

3.5.2 Statistical tools used


Statistical tools like Tabulation, Graphic Representations, percentage
analysis and, Chi-Square, are used in the compilation and computation of data.
54

Chi-Square Test
The Chi-Square test is one of the simplest and most widely used non-
parametric tests in statistical work. It is practically useful in tests involving
nominal data. It can be used for higher scales. It makes no assumptions about the
population being sampled. If Chi-Square is zero it means that the observed and
the expected frequencies completely coincide, while the greater the value of Chi-
Square is , the greater would be the discrepancy between observed and the
expected frequencies.
The formula for computing Chi-Square is

(O-E)2
CHI-SQUARE =
E

Where O = Observed Frequency, E = Expected Frequency


The calculated value of chi-square is compared with the table value of chi-
square for given degrees of freedom of specified level of significance. If the
calculated value of chi-square is greater than the table value the difference
between the theory and the observed is considered to be significant, i.e., it could
not have risen due to fluctuations of simple sampling. On the other hand if the
calculated value is less than the table value, the difference between the theory and
observation is not considered significant, i.e., it could have risen due to
fluctuations of sampling.
The number of degrees of freedom is described as the number of
observations that are free to vary after certain restrictions have been imposed on
the data. For a uniform distribution, we place one restriction on the expected
distribution - the total of sample observations.
55

Percentage analysis:
Percentage refers to a special kind of ratio. Percentage is used
in making comparison about two or more series of data. Percentage as also
used to describe relationship. It is also used to compare the relative terms of
two or more series of data.

Formula:

Number of respondents
× 100
Total no. of respondent
56

Chapter 4
Analysis and Interpretation

4.1. Data Collection

Data collection is the systematic recording of information. Data


collection is a term used to describe the process of preparing and
collecting data as part of a project. The purpose of data collection is to obtain
information to keep on record, to make decisions about important issues, to pass
information on to others. Primarily, data is collected to provide information
regarding a specific topic.

Data collection usually takes place early on in an improvement project, and is


often formalized through a data collection plan which often contains Pre
collection activity, Collection, Present Findings.

A formal data collection process is necessary as it ensures that data gathered


is both defined and accurate and that subsequent decisions based on arguments
embodied in the findings are valid. The process provides both a baseline from
which to measure from and in certain cases a target on what to improve.

4.2. Data Analysis

Analysis of data is a process of inspecting, cleaning, transforming, and


modeling data with the goal of highlighting useful information, suggesting
conclusions, and supporting decision making. The process of organizing and
thinking about data is key to understanding what the data does and does not
contain. Data analysis has multiple facets and approaches, encompassing diverse
techniques under a variety of names, in different business, science, and social
science domains. Data analysis involves working to uncover patterns and trends in
data sets; data interpretation involves explaining those patterns and trends.
57

Table 1
Table showing the frequency in which the customer visits the store
Frequency of No of
Percentage
customer’s visit respondents
Everyday 23 22
2-4 times a week 18 17
Once in a month 55 52
Once in a Year 9 9
Total 105 100

Interpretation
From the above table it is inferred that out of 105 respondents 22% of them
shop every day, 17% shop 2-4 times a week, 52% shop once in a month and 9%
shop once in a year.

Chart 1
58

Table 2
Table showing the influence of Communication Tools on customers
Influence of
No of
Communication Percentage
respondents
Tools on customers
Excellent 52 49
Good 28 27
Fair 15 14
Poor 10 10
Total 105 100

Interpretation

The above table shows that 50% of the customers are excellently influenced
by the communication tools like TV, newspaper, Internet and so on

Chart 2
59

Table 3
Table showing the likeliness of the customer suggesting the store to friends
Likeliness of the
No of
customer suggesting Percentage
respondents
the store
Excellent 71 67
Good 22 21
Fair 9 9
Poor 3 3
Total 105 100

Interpretation
From the above table 68% of the respondents are likely to suggest the store to
their friends and 23% have good likeliness to suggest the store to friends.
Chart 3
60

Table 4
Table showing the Promotions that influence customer to buy from the store
Promotions that
No of
influence you to buy Percentage
respondents
from the store
Coupons 13 12
Bonus Packs 38 37
Price-offs 43 41
Contests 11 10
Total 105 100

Interpretation

The above table shows that 12% of customers like coupons as promotions,
36% like Bonus packs, 41% like price-offs and only 10% like contests

Chart 4
61

Table 5
Table showing the likeliness of the customer to repurchase
Likeliness of the customer No of
Percentage
to repurchase respondents
Excellent 86 82
Good 12 11
Fair 5 5
Poor 2 2
Total 105 100

Interpretation

The above table shows that more than 80% of the respondents would
repurchase from the store and 2% of the customers do not want to repurchase as
they are not satisfied with the store’s service.
Chart 5
62

Table 6
Table showing the factor that the customers liked most in Appleofmyi
Factor that the customer No of
Percentage
liked most in Appleofmyi respondents
Ambience 23 22
Products 27 26
Customer Service 44 42
Promotions/Events 11 10
Total 105 100

Interpretation

From the above table it is inferred that 22% of customers like the
ambience of the shop, 26% like the products, 42% like customer service, and 10%
like promotions and events.

Chart 6
63

Table 7
Table showing how the customer learnt about Appleofmyi
How customer learnt No of
Percentage
about Appleofmyi respondents
TV 23 22
Newspapers 17 16
Internet 21 20
Friends 44 42
Total 105 100

Interpretation

From the above table it is seen that 22% of the customers learned about
the store through TV, 16% through newspapers, 20% through internet and 42%
through friends.

Chart 7
64

Table 8

Table showing if the advertisement appealed to the customer

If the advertisement
No of
appealed to the Percentage
respondents
customer
Yes 89 85
No 16 15
Total 105 100

Interpretation
The above table shows that 85% of the customers liked the advertisements
and 15% did not feel the advertisement appealing because the advertisements
were not attractive and did not highlight the advantages of shopping in
Appleofmyi

Chart 8
65

Table 9

Table showing if customers liked to bring their kids when they shop
Like to bring
No of
kids when you Percentage
respondents
shop
Yes 66 63
No 39 37
Total 105 100

Interpretation

The above table shows that 63% of the respondents liked to bring the kids
when they come for shopping and 37% do not like to bring their kids because they
get attracted by the products available and ask for so many things to be bought.

Chart 9

Table 10
Table showing the customer’s satisfaction with the accessibility of the store
66

Satisfied with
No of
the accessibility Percentage
respondents
of the store
Highly Satisfied 33 31
Satisfied 27 26
Neutral 21 20
Dissatisfied 14 13
Highly
10 10
Dissatisfied
Total 105 100

Interpretation
The above table shows that 57% of the customers were comfortable with the
accessibility of the store and 23% were not comfortable with the accessibility of
the store as they felt the store was too far from the center of the city and was not
located on the main road itself.

Chart 10

Table 11
Table showing customer satisfaction for the money spent
67

Value for No of
Percentage
Money spent respondents
Highly Satisfied 43 41
Satisfied 17 16
Neutral 21 20
Dissatisfied 17 16
Highly
7 7
Dissatisfied
Total 105 100

Interpretation
The above table shows that 41% of the customers were highly satisfied for
the value they got for the money spent. 16% were satisfied, 20% were neutral,
16% of the customers were not satisfied and 7% were highly dissatisfied for the
money they spent as they felt the products were too expensive and were not of
good quality.
Chart 11
68

Table 12
Table showing customer satisfaction with the availability of products
Satisfaction of
No of
Product Percentage
respondents
availability
Highly Satisfied 53 50
Satisfied 24 23
Neutral 21 20
Dissatisfied 5 5
Highly
2 2
Dissatisfied
Total 105 100

Interpretation
The above table shows that 50% of the customers were highly satisfied with
the product availability, 23% were satisfied and 7% were not satisfied as they did
not get the products that they were looking for.
Chart 12

Table 13
69

Table showing satisfaction of brands sold


Satisfied with No of
Percentage
Brands Sold respondents
Highly Satisfied 56 53
Satisfied 23 22
Neutral 19 18
Dissatisfied 5 5
Highly
2 2
Dissatisfied
Total 105 100

Interpretation
The above table shows that around 75% of the customers were satisfied with
the brands sold in the store and around 7% were not satisfied and 18% were
neutral.
Chart 13
70

Table 14
Table showing customer satisfaction with products arrangement in the store
Satisfaction of No of
Percentage
Product arrangement respondents
Highly Satisfied 56 53
Satisfied 23 22
Neutral 19 18
Dissatisfied 5 5
Highly Dissatisfied 2 2
Total 105 100

Interpretation
The above table shows that 75% of the customers were satisfied with way the
products were organized in the store and 7% of the customers felt the products
were not arranged properly.

Chart 14
71

Table 15
Table shows the customer satisfaction with the store’s pricing
No of
Pricing Percentage
respondents
Highly Satisfied 28 26
Satisfied 21 20
Neutral 25 24
Dissatisfied 25 24
Highly
6 6
Dissatisfied
Total 105 100

Interpretation
The table shows that more than 50% of the customers were comfortable with
the store’s pricing and around 30% of the customers were not satisfied with the
pricing as they felt the price was too high.
Chart 15
72

Table 16
Table shows satisfaction of customer service
Customer No of
Percentage
Service respondents
Highly Satisfied 67 64
Satisfied 19 18
Neutral 12 11
Dissatisfied 6 6
Highly
1 1
Dissatisfied
Total 105 100
Interpretation
The above table shows that 64% of the customers were highly satisfied with
the customer service and 18% were satisfied, 7% were not satisfied with the
customer service.
Chart 16
73

Table 17
Table showing customer satisfaction with the layout and ambience
Happy with the No of
Percentage
Layout/ambience respondents
Highly Satisfied 45 43
Satisfied 13 12
Neutral 18 17
Dissatisfied 27 26
Highly
2 2
Dissatisfied
Total 105 100
Interpretation
The above table shows that 43% of the customers like the layout and the
ambience of the store and around 28% did not like the ambience and layout

Chart 17
74

Table 18
Table shows overall customer satisfaction
Customer satisfasction No of
Percentage
with the store overall respondents
Highly Satisfied 56 53
Satisfied 13 12
Neutral 8 8
Dissatisfied 26 25
Highly Dissatisfied 2 2
Total 105 100

Interpretation
The above table shows that 65% of the customer liked the store overall
and around 27% were not satisfied with the store as they did not like the service
rendered and the product availability.

Chart 18

4.3 Hypothesis testing


75

1. Chi-square test to find out the relationship between the annual


income of the customers and the Promotion activities they prefer

Annual
Income (in Coupons Price-offs Bonus packs Total
Lakhs)
1-1.2 9 26 1 36
1.2-3.2 9 6 9 42
3.2-5 2 14 11 27
Above 5 5 16 2 27

TOTAL 25 62 4 105

Null Hypothesis

There is no relationship between annual income and the preference of


promotion activities.

Alternative Hypothesis

There is relationship between annual income and the preference of


promotion activities.

Level of Significance

5% level of significance
76

Test Statistics
X2 = (Oi- Ei)2
Ei
Calculation

Oi Ei (Oi- Ei)2 (Oi- Ei)2/ Ei


9 7.38 2.62 0.36
21 16.83 17.39 1.03
1 6.79 33.52 4.94
9 5.71 10.82 1.89
6 13.03 49.42 3.79
9 5.26 13.99 2.66
2 6.43 19.62 3.05
14 14.66 0.44 0.03
11 5.91 25.91 4.38
5 5.48 0.23 0.04
16 12.49 12.32 0.99
2 5.04 9.24 1.83
24.99

Interpretation
The calculated value is 24.99 where as the tabulated value for (r-1) (c-1)
i.e., (4-1) (3-1) for 5% level of significance is 12.59. Thus calculated value is
greater than the tabulated value. The null hypothesis is rejected and the alternative
hypothesis i.e., there is relationship between annual income and the
preference of promotion activity, is accepted.
77

2. Chi-square test to find out the relationship between the type of


promotion preferred and the frequency of shopping

Promotion Everyday 2-4 Once in Once Total


times a a month in a
week year
Coupons 6 2 8 3 19
Price-offs 3 1 14 5 23
Bonus Packs 1 2 16 3 22
Contests 2 2 23 14 41
TOTAL 12 7 61 25 105

Null Hypothesis

There is no relationship between the type of promotion preferred and the


frequency of shopping.

Alternative Hypothesis

There is relationship between the type of promotion preferred and the


frequency of shopping.

Level of Significance

5% level of significance
78

Test Statistics

X2 = (Oi- Ei)2
Ei
Calculation
Oi Ei (Oi- Ei)2 (Oi- Ei)2/ Ei
6 2.17 14.67 6.76
2 1.27 0.53 0.42
8 11.04 9.24 0.84
3 4.52 2.31 0.51
3 2.63 0.14 0.05
1 1.53 0.28 0.18
14 13.36 0.41 0.03
5 5.48 0.23 0.04
1 2.51 2.28 0.91
2 1.47 0.28 0.19
16 12.78 10.37 0.81
3 5.24 5.02 0.96
2 4.69 7.24 1.54
2 2.73 0.53 0.19
23 23.82 0.67 0.03
14 9.76 17.98 1.84
15.3

Interpretation
The calculated value is 15.3 where as the tabulated value for (r-1) (c-1)
i.e., (4-1) (4-1) for 5% level of significance is 16.92. Thus calculated value is less
than the tabulated value. The alternate hypothesis is rejected and the null
hypothesis i.e., there is no relationship between the type of promotion
preferred and the frequency of shopping, is accepted.
79

3. Chi-square test to find out the relationship between the annual


income of the customers and the frequency of their shopping

Annual Everyday 2-4 times a Once in a Once in a Total


Income (in week month year
Lakhs)
1-1.2 0 0 3 16 19
1.2-3.2 0 0 5 14 19
3.2-5 1 7 21 0 29
Above 5 2 10 26 0 38
TOTAL 3 17 55 30 105

Null Hypothesis

There is no relationship between the annual income of the customers and


the frequency of their shopping.

Alternative Hypothesis

There is relationship between the annual income of the customers and the
frequency of their shopping.

Level of Significance

5% level of significance
Test Statistics

X2 = (Oi- Ei)2
Ei
80

Calculation

Oi Ei (Oi- Ei)2 (Oi- Ei)2/ Ei


0 0.54 0.29 0.54
0 3.08 9.49 3.08
3 9.95 48.3 4.85
16 5.43 111.72 20.57
0 0.54 0.29 0.54
0 3.08 9.49 3.08
5 9.95 24.5 2.46
14 5.43 73.44 13.52
1 0.83 0.03 0.04
7 4.7 5.29 1.13
21 15.19 33.76 2.22
0 8.29 68.72 8.29
2 1.09 0.83 0.76
10 6.15 14.82 2.41
26 19.9 37.21 1.87
0 10.86 117.94 10.86
76.22

Interpretation
The calculated value is 76.22 where as the tabulated value for (r-1)
(c-1) i.e., (4-1) (4-1) for 5% level of significance is 16.92. Thus calculated value
is greater than the tabulated value. The null hypothesis is rejected and the
alternative hypothesis i.e., there is relationship between the annual income of
the customers and the frequency of their shopping, is accepted.
81

4. Chi-square test to find out the relationship between the customer


service and overall satisfaction

Satisfaction Good Average Bad Total


Highly Satisfied 21 15 0 36
Satisfied 22 11 0 33
Neutral 2 14 3 19
Dissatisfied 0 1 16 17
Highly 0 2 18 20
Dissatisfied
TOTAL 45 43 37 105

Null Hypothesis

There is no relationship between customer service and overall satisfaction.

Alternative Hypothesis

There is relationship between the customer service and overall


satisfaction.

Level of Significance

5% level of significance

Test Statistics

X2 = (Oi- Ei)2
Ei
82

Calculation

Oi Ei (Oi- Ei)2 (Oi- Ei)2/ Ei


21 15.43 31.02 2.01
15 14.74 0.07 0
0 12.69 161.04 12.69
22 14.14 61.78 4.37
11 13.51 6.3 0.47
0 11.63 135.26 11.63
2 8.14 37.7 4.63
14 7.78 38.69 4.97
3 6.7 13.69 2.04
0 7.29 53.14 7.29
1 6.96 35.52 5.1
16 5.99 100.2 16.73
0 8.57 73.44 8.57
2 8.19 38.32 4.68
18 7.05 119.9 17.01
102.19

Interpretation
The calculated value is 102.19 where as the tabulated value for (r-1) (c-1)
i.e., (5-1) (3-1) for 5% level of significance is 15.51. Thus calculated value is
greater than the tabulated value. The null hypothesis is rejected and the alternative
hypothesis i.e., there is relationship between the customer service and overall
satisfaction, is accepted.
83

5. Chi-square test to find out the relationship between the annual


income of the customers and the amount spent on kid's products
Annual Income Below Rs.500 - Rs.1000 Above Total
(in Lakhs) Rs.500 Rs.1000 - Rs.2500
Rs.2500
1-1.2 12 4 3 3 22
1.2-3.2 8 6 2 2 18
3.2-5 3 7 12 7 29
Above 5 2 6 13 15 36
TOTAL 25 23 30 27 105

Null Hypothesis

There is no relationship between the annual income of the customers and


the amount spent on kid's products.

Alternative Hypothesis

There is relationship between the annual income of the customers and the
amount spent on kid's products.

Level of Significance

5% level of significance

Test Statistics

X2 = (Oi- Ei)2
Ei
Calculation
84

Oi Ei (Oi- Ei)2 (Oi- Ei)2/ Ei


12 5.24 45.7 8.72
4 4.82 0.67 0.14
3 6.29 10.82 1.72
3 5.66 7.08 1.25
8 4.29 13.76 3.21
6 3.94 4.24 1.08
2 5.14 9.86 1.92
2 4.63 6.92 1.49
3 6.9 15.21 2.2
7 6.35 0.42 0.07
12 8.29 13.76 1.66
7 7.46 0.21 0.03
2 8.57 43.16 5.04
6 7.89 3.57 0.45
13 10.29 7.34 0.71
15 9.26 32.95 3.56
33.25

Interpretation
The calculated value is 33.25 where as the tabulated value for (r-1) (c-1)
i.e., (4-1) (4-1) for 5% level of significance is 16.92. Thus calculated value is
greater than the tabulated value. The null hypothesis is rejected and the alternative
hypothesis i.e., there is relationship between the annual income of the
customers and the amount spent on kid's products, is accepted.
85

Chapter 5
Findings, Suggestions and Conclusions
5.1 Findings of the study
• 22% of them shop every day, 17% shop 2-4 times a week, 52% shop once
in a month and 9% shop once in a year.
• 50% of the customers are excellently influenced by the communication
tools like TV, newspaper, Internet and so on.
• 68% of the respondents are likely to suggest the store to their friends and
23% have good likeliness to suggest the store to friends.
• 12% of customers like coupons as promotions, 36% like Bonus packs,
41% like price-offs and only 10% like contests
• 80% of the respondents would repurchase from the store.
• 22% of customers like the ambience of the shop, 26% like the products,
42% like customer service, 10% like promotions and events.
• 22% of the customers learned about the store through TV, 16% through
newspapers, 20% through internet and 42% through friends.
• 85% of the customers liked the advertisements and 15% did not feel the
advertisement appealing as it was not attractive.
• 63% of the respondents liked to bring the kids when they come for
shopping and 37% do not like to bring their kids because they get attracted
by the products available and ask for so many things to be bought
• 57% of the customers were comfortable with the accessibility of the store
and 23% were not comfortable with the accessibility of the store as they
felt the store was too far from the center of the city and was not located on
the main road itself.
86

• 41% of the customers were highly satisfied for the value they got for the
money spent. 16% were satisfied, 20% were neutral, 16% of the customers
were not satisfied and 7% were highly dissatisfied.
• 50% of the customers were highly satisfied with the product availability,
23% were satisfied and 7% were not satisfied as they did not get the
product they were looking for.
• 64% of the customers were highly satisfied with the customer service and
18% were satisfied and 7% were not satisfied with the customer service.
• 43% of the customers likes the layout and the ambience of the store and
around 28% did not like the ambience and layout
• 65% of the customer liked the store overall and around 27% were not
satisfied with the store.
• The chi-square analysis of Annual income and preference of promotion
activity shows that there is relationship between Annual income and
preference of promotion activity.
• The chi-square analysis of promotion and frequency of shopping shows
that there is no relationship between the type of promotion preferred and
the frequency of shopping
• The chi-square analysis of annual income and frequency of shopping
shows that there is relationship between the annual income of the
customers and the frequency of their shopping
• The chi-square analysis of customer service and overall satisfaction shows
that there is relationship between the customer service and overall
satisfaction
• The chi-square analysis of annual income and amount spent on kid’s
product shows that there is relationship between the annual income of the
customers and the amount spent on kid's products,
87

5.2 Suggestions

After detailed analysis of the data collected through questionnaire, the following

suggestions can be made:

• Promotions influence the customers a lot in making them shop for more

money and also more frequently. Promotion activities like giving gift

coupons, scratch cards, Mega prizes and fun events can be organized to

improve sales.

• Since very few customers have stated that they like the ambience of the

store, it can be improved to make the customer return to the store to shop

more.

• More advertisement can be done in TV. The advertisement has to made

more appealing by making it more attractive and also by highlighting the

advantages of shopping in Appleofmyi

• Since many customers consider the layout when they shop, importance has

to be given to improve it.

• The products have to be organized in a better way in the store.

• The store has to continue selling products of good brand as many


customers like the brands sold in the store
• Measures have to be taken to ensure that the customer get the value for the
money spent in the store.
88

5.3 Conclusions

According to the findings it is clear that the customers are satisfied with
the current level of customer service. It is also seen that customers not only give
importance to factors like Brand and Price but to also things like the layout and
the ambience of the store and the way the products are organized in the store.
By remembering the facts that the customers have stated as important for
shopping, Appleofmyi has to learn and grow continually in order to retain the
market place and also to improve their sales. Even though most of the store’s
customers are getting good service, the store has to rejuvenate the existing
facilities to make a foot hold in retailing industry.
89

Appendix – I
Terms using in this research project

TARGET POPULATION
Relevant collection of elements about which we wish to make some
inferences

CONFIDENCE LEVEL
The probability that statistician’s associate with an interval estimate of a
population parameter, indicating how confident they are that interval estimate will
include the population parameter

HYPOTHESIS
An assumption or speculation we make about a population parameter

NULL HYPOTHESIS – H0
The hypothesis, or assumption about a population parameter we wish to test,
usually an assumption of the status quo

ALTERNATIVE HYPOTHESIS – H1
Whenever we reject the hypothesis, the conclusion we do accept is called
the alternative hypothesis

LEVEL OF SIGNIFICANCE
A value indicating the percentage of sample values that is outside certain
limits, assuming the null hypothesis is correct, that is, the probability of rejecting
the null hypothesis when it is true

SAMPLING FRAME
It is the list of elements from which the sample is actually drawn. Ideally, it
is a complete and correct list of population members only
90

questionnaire
91

questionnaire
92
93
94

Bibliography

TEXTBOOKS
• Alvin C.Burns & Ronald F.Bush,” Marketing Research”, Prentice Hall,
July 2009.
• Terry G. Vavra, “Improving your measurement of customer satisfaction”,
ASQ Quality Press, January 1997.
• Jeffrey Gitomer, “Customer Satisfaction is worthless Customer loyalty is
priceless”, Brad Press, August 1998.
• Naresh Malhotra , “Market Research – An Applied Orientation”, Pearson
Education, March 1999.

WEBSITES
1. www.applepfmyi.com
2. www.wikipedia.com
3. http://en.wikipedia.org/wiki/Customer_satisfaction
4. http://managementhelp.org/customer/satisfy.htm
5. http://www.customersatisfaction.com/

Вам также может понравиться