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QUESTIONNAIRE
General Information
Everyday Weekly
Monthly Yearly
Yes No
Retail Wholesale
Appleofmyi
1. Have you been to Appleofmyi?
Yes No
Excellent Good
Fair Poor
Excellent Good
3
Fair Poor
Yes No
Price-offs Contests
Excellent Good
Fair Poor
Ambience Products \
Internet Friends
10. Was the advertisement appealing?
12. Are you happy with the value you get for your money?
1 2 3 4
5
15. Are you satisfied with the way the products are organised in the store?
1 2 3 4
5
18. Are you satisfied with the store layout and ambience?
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
********
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
PROJECT REPORT
Submitted by
SOURABH KUMAR
TECHNOLOGY
COIMBATORE – 641 032
MAY 2010
HINDUSTHAN COLLEGE OF ENGINEERING
AND TECHNOLOGY
COIMBATORE – 641 032
DEPARTMENT OF MANAGEMENT STUDIES
PROJECT WORK
MAY 2010
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
DECLARATION
I affirm that the project work titled ”A Study on Customer Contentment towards
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
Sourabh Kumar
088001107051
Lecturer
ACKNOWLEDGEMENT
24
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
I like to express my gratitude to Mr. Kali Charan Shukla and Mr. Vijay
Jumani, Director, Inventis Retail, under whose valuable guidance the project
Sourabh Kumar
CONTENTS
Abstract ix
1. Introduction 1
1.3 Objective 9
1.4 Scope 10
1.5 Limitations 11
3. Research Methodology 23
Appendices
26
Bibliography
List of Tables:
List of Charts
ABSTRACT
Chapter 1
1.1 About the Industry
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.
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)
Retail pricing
31
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.
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.
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
use facing techniques to create the look of a perfectly-stocked store, even when it
is not.
Customer service
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
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.
Appleofmyi.
38
• To analyse and find the factors that influences the customer while buying.
• This study will show the overview of customer contentment of the store
Appleofmyi.
39
• 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
• Due to their busy schedule some customers could not give answers to all
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.
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
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.
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.
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
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”.
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.
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
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
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
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
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
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
Alternative Hypothesis
Level of Significance
5% level of significance
76
Test Statistics
X2 = (Oi- Ei)2
Ei
Calculation
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
Null Hypothesis
Alternative Hypothesis
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
Null Hypothesis
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
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
Null Hypothesis
Alternative Hypothesis
Level of Significance
5% level of significance
Test Statistics
X2 = (Oi- Ei)2
Ei
82
Calculation
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
Null Hypothesis
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
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.
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• 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,
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5.2 Suggestions
After detailed analysis of the data collected through questionnaire, the following
• 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.
• Since many customers consider the layout when they shop, importance has
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.
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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
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questionnaire
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questionnaire
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93
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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/