Management Thesis

on

Customer Satisfaction at

Panaji Outlet

Compiled By:

Ms. Pranita Shah

Student of ICFAI National College

1
 DECLARATION

I, Ms. Pranita P. Shah, hereby declare that the report compiled by me for the
purpose of Understanding the Satisfaction Level of the Customers of Fabindia -
Panaji outlet and also the factors that influence shoppers‟ decision whilst choosing
Fabindia; is original and is not copied from any other project or book. The definitions
have been referred from various sources which are mentioned in my project.

This Project is done to fulfill the Academic Requirement of MBA Course.

Ms. Pranita P. Shaha

2
 ACKNOWLEDGEMENT

I wish to express my sincere gratitude to Ms. Simi, HR Head, Fabindia,

Panaji, who gave me an opportunity to do a projeect in such an esteemed
organization.

I am deeply indebted to Mr. Imran Ahmad, Centre Head – INC Porvorim

and Mr. Chetan Hiremath, Faculty Guide, for their continuous guidance and help
in organizing my thoughts and in compiling this project. It would not be possible for
me to complete this project without their encouragement and co-operation. I would
also like to thank the Other Staff of Fabindia, who helped me conduct my research.

Last but not the least I thank my Family & Friends for their encouragement, support
and suggestions which have helped allocate in the completion of my Project.

With the deepest sense of Gratitude,

Ms. Pranita P. Shaha

3
 TABLE OF CONTENTS

Sr. No Particulars Page No.

1. Abstract 05
2. Introduction to the Retail Sector 06
3. Company Profile – Fabindia 11
4. Literature Review 12
5. Description of the Study 17
6. Objective of the Study 17
7. Hypothesis Formulation 18
8. Methodology 20
9. Data Analysis 21
10. Results & Analysis 27
11. Hypothesis Testing & Analysis 29
12. Conclusion – Observations & Recommendations 37
13. References 39
14. Annexure – Questionnaire 42

4
 ABSTRACT

Customer satisfaction is the buzzword of the 1990s. Unfortunately, there still exists a
perception that satisfying their customers as a nice thing to do rather than a critical
component of success. Organization needs to understand that there is a direct
relation between customer satisfaction and profitability. In today‟s competitive
market, one needs to strive hard to retain its market share. One needs to understand
its customers‟ tastes, likes and preferences well to serve them better and make them
loyal to the company.

Understanding a customer better becomes although more important for a retailer as

there is lot of competition from local as well as some international branded stores.
The customer should be made comfortable in all the ways possible. A retailer needs
to take into consideration several aspects such as the quality of service provided, the
ambience of the store, hygiene factors, the merchandise availability, price range
offered etc., else they will switch over to the competitors.

And so a study was conducted to know whether product range, price range, service,
ambience and cleanliness and display of products have an influence on customers‟
decision to visit Fabindia and also to see if the customers were satisfied with
Fabindia. The study was conducted at Fabindia, Panaji, Goa, primarily for Apparels,
Home Furnishing and Décor, Organic Products and Jewellry section. Over 135
customers were interviewed with structured questionnaire. Further the data was
tabulated and analyzed using chi-square test. The study concluded that ambience
and cleanliness of the store influenced the customers‟ decision to visit the store and
the customers who are satisfied with the product range were not as equal to the
customers satisfied with the price range, service, ambience & cleanliness and the
display of products in all the Sections of the store. This means that there are few
customers who were happy with the product range and unhappy with the other
factors or so on….

5
 INTRODUCTION TO THE RETAIL SECTOR

The Indian Retail Industry is the largest among all the industries, accounting for over
10 per cent of the country‟s GDP and around 8 per cent of the employment.1 The
Retail Industry in India has come forth as one of the most dynamic and fast paced
industries with several players entering the market. But because of high initial
investment that s required to break even with the other companies, not all have
tasted the fruits of success.

Today we have shopping malls, multi-storied malls, huge complexes offering

shopping, entertainment and food under one roof coming up to cater to the need of
changing consumer buying patterns and their demands.

The key factors in the growth of the organized Retail sector in the country would be –
A large young working population with median age of 24 years
Nuclear families in urban areas
Increasing working women population
Emerging opportunities in the services sector2

Facts:
Indian retail is expected to grow 25 per cent annually.
Modern retail in India could be worth US$ 175-200 billion by 2016.
The Food Retail Industry in India dominates the shopping basket.
The Mobile phone Retail Industry in India is already a US$ 16.7 billion
business, growing at over 20 per cent per year.

Purchasing power of Indian urban consumer is growing and branded merchandise in

categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even

1
http://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-its-
growth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities1.asp
2
http://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-its-
growth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities1.asp

6
Jewellery, are slowly becoming lifestyle products that are widely accepted by the
urban Indian consumer. A number of large corporate houses – Tata‟s, Raheja‟s,
Piramals‟s, Goenka‟s; have already made their foray into this arena, with beauty and
health stores, supermarkets, self-service music stores, newage book stores, every-
day-low-price stores, computers and peripherals stores, office equipment stores and
home/building construction stores.

GROWTH OF RETAIL SECTOR IN INDIA

The 2 main booming industries in the country at present are Retail and Real Estate
and it is believed that the prospects of both the sectors are mutually dependent on
each other. Retail, one of India‟s largest industries, accounting for over 10 per cent
of the country‟s GDP and around eight per cent of the employment retailing in India
is gradually inching its way toward becoming the next boom industry.

As discussed earlier about the changing consumer buying behaviour and their
increasing demands, many malls, multiplexes, multi-storied malls have come up.
This has also contributed to large-scale investments in the real estate sector with
major national and global players investing in developing the infrastructure and
construction of the retailing business. The trends that are driving the growth of the
retail sector in India are

 Low share of organized retailing

 Falling real estate prices
 Increase in disposable income and customer aspiration
 Increase in expenditure for luxury items (CHART)

7
One more important factor that is leading to the growth of the retail sector in India is
the increase in the young working population. In India, hefty pay packets, nuclear
families in urban areas, along with increasing working-women population and
emerging opportunities in the services sector. The key factors like more nuclear
families in urban areas, increase working-women population, etc. have been the
growth drivers of the organized retail sector in India which now boast of retailing
almost all the preferences of life - Apparel & Accessories, Appliances, Electronics,
Cosmetics and Toiletries, Home & Office Products, Travel and Leisure and many
more. This had made way for new formats such as departmental stores,
hypermarkets, supermarkets and specialty stores.

India is being seen as a potential goldmine for retail investors from over the world
and India has been rated as the top destination for retailers for an attractive
emerging retail market. India‟s vast middle class and its almost untapped retail
industry are key attractions for global retail giants wanting to enter newer markets.
The organized retail sector is expected to grow stronger than GDP growth in the next
five years driven by changing lifestyles, burgeoning income and favorable
demographic outline. 3

3
http://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-its-
growth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities1.asp

8
 INDUSTRY EVOLUTION4

Traditionally retailing in India can be traced to –

 The emergence of the neighborhood Kirana stores catering to the

convenience of the consumers
 Era of government support for rural retail: Indigenous franchise model of store
chains run by Khadi & Village Industries Commission
 1980s experienced slow change as India began to open up economy.
 Textiles sector with companies like Bombay Dyeing, Raymond's, S Kumar's
and Grasim first saw the emergence of retail chains
 Later Titan successfully created an organized retailing concept and
established a series of showrooms for its premium watches
 The latter half of the 1990s saw a fresh wave of entrants with a shift from
Manufactures to Pure Retailers.
 For e.g. Food World, Subhiksha and Nilgiris in food and FMCG; Planet M and
Music World in music; Crossword and Fountainhead in books.
 Post 1995 onwards saw an emergence of shopping centers
 Mainly in urban areas, with facilities like car parking
 Targeted to provide a complete destination experience for all segments of
society
 Emergence of hyper and super markets trying to provide customer with 3 Vs -
Value, Variety and Volume
 Expanding target consumer segment: The Sachet revolution - example of
reaching to the bottom of the pyramid.
 At year end of 2000 the size of the Indian organized retail industry is
estimated at Rs. 13,000 crore

4
http://www.fibre2fashion.com/industry-article/free-retail-industry-article/indian-retail-industry-its-
growth-challenges-and-opportunities/indian-retail-industry-its-growth-challenges-and-opportunities7.asp

9
 RETAIL SECTOR IN GOA

Retail in Goa has seen an average growth of 8-10% in every year since the last 5
years.5 There has been a sudden boom from 2004. Goa Retail Market value and the
land values in Goa‟s capital city, Panaji has almost doubled in the last year. The
other Retail Market Places in Goa State have seen a steady increase of twenty
percent.

Goa tourism is mainly attracted with the coastal belt as it has a fine sea view is
always insisting. People are also interested to see inner lands, high hills, rivers and
valleys with closeness to the city. Goa Retail spaces for restaurants, coffee shops,
boutique shop, art gallery, salon, lifestyle store, spa, destination store, showroom
etc. With the huge demand in Goa Retail, it provides a lot more Retail Job
opportunities in Goa.

5
http://www.goaretail.com/

10
 COMPANY PROFILE

FABINDIA

Fabindia is an Indian chain of stores retailing ethnic products made by craftsmen

from rural India. Fabindia sources its products from over
15000 craft persons and artisans across India. The
company supports the craft traditions of India by providing a
market and thereby encourage and sustain rural
employment. Today they have retail outlets in all major cities
of India - 105 at last count - in addition to international
stores in Dubai, UAE; 3 stores in Bahrain; Doha, State of
Qutar and Rome, Italy. The vision of the company is to maximize the hand made
element in our products, whether it is hand-woven textiles, hand block printing, hand
embroidery or handcrafting home products. 6

The major portion of Fabindia‟s product range is textile based. Non- textile
introductions to this range are Home Products (introduced in October 2000),
Organic Food Products (introduced in July 2004) & Fabindia Sana – Fabindia‟s
range of authentic bodycare products (introduced in March 2006).

6
http://www.fabindia.com/

11
 Literature Review

1. V. Krishna Mohan, P. Pinkapani and MSR Sesha Giri (2008) “Dynamics of

Retail Market” Service Marketing, ICFAI University Press (VI) 3, pp. 20 – 27.
The study was conducted to find out the efforts of economic growth,
demographics and urban India on retailing. The study was based on
secondary data. The study concluded that though only 3% of the entire retail
sector is organized, the new retail formats coming up are changing the
lifestyles, living spaces, and structure of family and their organizations.

2. Amit Kumar Sinha (2005), “Gender difference among adolescences as

influences and impact of communication in the family purchase decision – a
study”, Marketing Management, ICFAI University Press (IV) 4, pp. 50 – 59
The study was conducted aiming to identify the role measures of
adolescences; to find out the difference between male and female
adolescences in their influence and their communication in family purchases.
A Questionnaire on the interval scale was used to interview the sample size
of 30 and the data was measured on 5 Point Likert Scale and Sementic
Differential Scale. And it was concluded that the general socialization
orientation of parent serves as a context of interaction between parents and
adolescences in purchase decisions.

3. Mdhurime Deb and Gautam Sinha (2007), “Importance of Service Quality,”

Marketing Management, ICFAI University Press, (VI) 1, pp. 6 -15
They conducted a study to prepare a model to measure retail service, quality
and present the outcome of the service quality in customer retention.
Retailers selling grocery items, food departments, etc. were interviewed.
Their finding was there was Correlation between relative prices and good
quality is very low as against the hypothesis. Therefore, there is a strong
relationship between price and quality.

12
4. Valsamma Antony (2009), Small retail stores strive on Customer Relations,
Marketing Mastermind, ICFAI University Press, 68-70.
To study the how smaller retailers are placed to handle the oncoming
competition, the sales promotion techniques employed by these retailers, the
customer relations followed. The sample unit for this study consisted of five
categories of retail outlets (grocery, medical, stationery, bakery, apparel
store). The findings of this study were in customer relationship measures
practices; stocking and supplying all the goods required by the customer as
well as friendliness even outside the store were most prominent. About 96%
of the respondents were regular customer and hence enjoyed an assured
market.

5. Sukanya Ashokkumar,(2005),Private Labels: Regional Consumer Perception,

Advertising Express, ICFAI University Press, pp.55-59
The study is about how much is the regional consumer aware of the private
brands in the market and their perception towards it. It was found that level of
awareness in small cities is high and the findings suggest that private labels
should position as those providing value for money because they are
perceived as cheaper compared to manufacturers brand.

6. Sunayna Khurana (2008), “Consumer Expectation & Perception – A Study of

Retail in Hariyana,” Consumer Behaviour, ICFAI University Press, (III) 3, pp.
47 – 57
The study aimed at defining the dimension of service quality and
examines the service quality gap. Judgment and convenience sampling
was done and data collected from various retail outlets. 225 respondents
were interviewed. And it was found that the retailers of Hariyana provided
high quality merchandise according to the needs and wants of the
customers.

13
7. Paromita Goswami (2007), “Apparels Shopping Behaviour of Urban Indian
Students,” ICFAI University Press, (VI), 4, Pg.. 47
The main objective of this study was to evaluate the shopping behaviour of
students in terms psychological variables – store choice and interpersonal
influence. Stratified sampling was done and the Sample size taken was 185
college students out of which 100 were old shoppers. It was noticed that older
customers are less concerned on bargaining but more conscious about the
brand. Quality for students – mother, peers, play important role.

8. Derry Law, Joanne Yip, “The Impact of Visual Merchandising on Consumer

Decision Process for Intimate Apparels”. The report is available at –
http://www.scribd/pdf/ceo5ate90200700065/
The study was conducted to find the impact of impulsive buying factors like
sales promotions, placement of products, window merchandising, effective
price strategy, etc. on customers‟ impulse buying behaviour. To find the
same, Focused group interviews were done. Sample size was drawn from the
females aging between 25 – 35. The sample size intended to look for new
intimate apparels; the mannequin‟s also influenced their decisions.

9. Sonia (2008), “Customer Perception towards Mega Mart”, Service Marketing,

ICFAI University Press, (VI) 4, pp. 38 – 48
Objective: To realize cost and profit from commodities and services to
highlight socio-economic characteristics (age, sex, income, education) and
customers perception (location, parking space, etc.) towards the various
aspects of Mega Mart. To study the same 250 customers were interviewed
who visited 5 Mega Marts. Analysis of Variance and Likert Scale attributes
were used for analysis. It was understood that Mega Mart cannot attract older
age and female customers and so the Marts need to extend their advertising
and sales promotion.

10. Kumar Gaurav (2008), “Impact of Relationship Marketing Strategy on

Customer Loyalty”, ICFAI Journal of Marketing Research, (VII) 2, Pg. 7

14
 The study was aimed to investigate the impact of relationship marketing
strategy on customer loyalty. And also to investigate the impact o various
demographic variables in association with relationship marketing variables on
customer loyalty. Convenience sampling of 130 customers and they were
interviewed. It was found that factors like trust, customer focus and
communication can predict customer loyalty very well.

11. Meera Mullick-Kanwar,(2005), The Evolution of Private Label Branding,

Advertising Express, ICFAI University Press, pp.27-34
The study is about how there has been a rapid shift in mindset about the role
and requirements for today‟s private label brands. This study suggests from
low priced, poor quality „me too‟ to retailers own proprietary brand. It was
found that when „own‟ brands are created and steered, they have their
pinnacle to reach success.

12. Abhigyan (2008), “Latest trends in consumer buying behaviour in Lifestyle”,

Management Research, ICFAI University Press, (VII) 6, pp. 70 – 81
The main objective of this study was to understand the nature of consumption
is hedonic in nature and how it dominates lifestyle center purchasing. Survey
was conducted with the help of Scaled questionnaire and 266 college
students and staff members were interviewed. He concluded that less
conservative person is generally more materialistic, tends more towards
impulsive buying and is more likely to be young and big economic class. This
type of customers is ideal for lifestyle.

13. J.K. Nandi (2007), “An alternative mode to improve productivity in 21st
century”, Marketing Research, ICFAI University Press, (VI) 1, pp. 7 – 15.
The study was aimed to find the relationship between the employees
achieved motivation and productivity as a whole in an organization. Thematic
appreciation test and production of 12 months has been considered as
sample size. The study concluded by saying that achieved motivation
improves productivity of whole organization.

15
 14. Hye-Shin Kim, Byuongho Jin, (2006), Exploratory study of virtual communities
of apparel retailers, Journal of fashion marketing and management, Emerald
group publishing ltd. (X) 1, pp.41-55

This study aims to present a general overview of the characteristics of virtual

communities hosted by apparel retailers. Content analysis was conducted on
2,521 web sites hosted by apparel retailers. Web sites of apparel retailers
were identified from Stores Magazine “top 100 specialty retailers” and “top
100 retailers” listings, and Google search engine directory. Web sites were
analyzed in terms of general characteristics of apparel retailers (e.g. apparel
product categories, ability to purchase online, presence of brick-and-mortar
stores). Two coders individually visited each web site and coded the contents.
A total of 13 virtual communities hosted by apparel retailers were found.
Apparel retailers selling casual merchandise to the young teen market had
the strongest representation. Most of the virtual communities used bulletin or
message board tools.

15. Despina K (2008), Buyers satisfaction on purchasing decision and relative

contribution of promotions tools, ICFAI university marketing management,
IUP, vol. 8 no. 1, pp.6-14.
The study intends to examine consumer attitude towards Olympics product,
purchasing behavior and various means of promotion on their attitude and
purchase. Data collection was based on structured questionnaire of sample of
170 from central points in the city of Athens. Due to the product to be
expensive above the line promotion tools seems less effective in gaining
customers satisfaction. So BTL was adopted.

After studying all such studies, one can understand the importance for retailers to
understand the importance of Customer Satisfaction and so I found it necessary to
understand the satisfaction level of the customers of Fabindia - Panaji outlet and also
the factors that influence shoppers‟ decision whilst choosing Fabindia.

16
 DESCRIPTION OF THE STUDY

The research is aiming to understand the satisfaction level of the customers of

Fabindia - Panaji outlet and also the factors that influence shoppers‟ decision whilst
choosing Fabindia.

OBJECTIVE OF MY STUDY

 To study the major factors (product range, service, price range, ambience &
cleanliness and display) influencing the decision of customers to visit
Fabindia.
 To know whether the customers are satisfied with the above mentioned
factors offered by Fabindia - Panaji outlet.
 To suggest measures to improve their services towards customers.

17
 HYPOTHESIS FORMULATION

1. Apparels:
Ho: P1 = P2 = P3 = P4 = P5 H1: P1 ≠ P2 ≠ P3 ≠ P4 ≠ P5

Where,
P1 = % of customers satisfied with the Product Range offered in the Apparels
Section.
P2 = % of customers satisfied with the Price Range offered in the Apparels
Section.
P3 = % of customers satisfied with the Service offered in the Apparels
Section.
P4 = % of customers satisfied with the Ambience and Cleanliness in the
Apparels Section.
P5 = % of customers satisfied with the Display of Products in the Apparels
Section.

2. Home & Décor Furnishings

Ho: P1 = P2 = P3 = P4 = P5 H1: P1 ≠ P2 ≠ P3 ≠ P4 ≠ P5

Where,
P1 = % of customers satisfied with the Product Range offered in the Home &
Décor Furnishings Section.
P2 = % of customers satisfied with the Price Range offered in the Home &
Décor Furnishings Section.
P3 = % of customers satisfied with the Service offered in the Home & Décor
Furnishings Section.
P4 = % of customers satisfied with the Ambience and Cleanliness in the
Home & Décor Furnishings Section.
P5 = % of customers satisfied with the Display of Products in the Home &
Décor Furnishings Section.

18
3. Organic Products Dept.
Ho: P1 = P2 = P3 = P4 = P5 H1: P1 ≠ P2 ≠ P3 ≠ P4 ≠ P5

P1 = % of customers satisfied with the Product Range offered in the Organic

Products Section.
P2 = % of customers satisfied with the Price Range offered in the Organic
Products Section.
P3 = % of customers satisfied with the Service offered in the Organic
Products Section.
P4 = % of customers satisfied with the Ambience and Cleanliness in the
Organic Products Section.
P5 = % of customers satisfied with the Display of Products in the Organic
Products Section.

4. Jewellry
Ho: P1 = P2 = P3 = P4 = P5 H1: P1 ≠ P2 ≠ P3 ≠ P4 ≠ P5

P1 = % of customers satisfied with the Product Range offered in the Jewellry

Section.
P2 = % of customers satisfied with the Price Range offered in the Jewellry
Section.
P3 = % of customers satisfied with the Service offered in the Jewellry Section.
P4 = % of customers satisfied with the Ambience and Cleanliness in the
Jewellry Section.
P5 = % of customers satisfied with the Display of Products in the Jewellry
Section.

19
 METHODOLOGY

The study was conducted to understand the satisfaction level of the customers of
Fabindia - Panaji outlet and also the factors (Product range, Price range, Service,
Ambience & Cleanliness, Display of Products) that influence shoppers‟ decision
whilst choosing Fabindia. It is a primary-descriptive research involving pilot study,
descriptive study and secondary data analysis. The study is aiming to find out the
which is the most dominant factor that influences the customer to visit Fabindia and
also if they are satisfies with the stores‟ offering. The study will also include a survey
wherein a questionnaire will be given to the customers at the outlet and the data will
collected personally.

The data will be collected using a structured questionnaire from the retail outlet;
convenience sampling will be used since I will be interviewing customers in the
outlet. The target population will be people shopping for in the outlet. The data
collected will be put on a master-sheet and also fed in to excel sheet, using the
statistical tools the data will be tabulated and analyzed. Also secondary data from
previous researches and observations during conducting the survey will be used for
the study.

A sample size of 250 customers was taken, by finding out how many customers visit
the retail outlet on an average in a week. Due to response error and unwillingness of
customers to fill up the questionnaires, the data was analyzed with 130 respondents.

Measurement tools like likert, itemized and comparative scales will be used in the
questionnaire in order to measure the collected data. The data was tabulated using
pie-charts, graphs and tabular columns and the master-sheet was prepared. Based
on the findings the hypotheses were tested using chi-square.

20
 DATA ANALYSIS

The above chart depicts the percentage of people who prefer traditional, denims,
formals and casuals. According to the chart, 40% of the people interviewed prefer
Casuals, 32% prefer Formals, 18% prefer Traditional and only 10% prefer Denims.
And hence the store can keep more of casual clothes to attract the target customers.

This chart shows the type of Fabric customers prefer. According to the chart, 68% of
the respondents prefer Cotton apparels, 25% prefer Silks, 4% prefer Synthetic, 1%
prefer Polyester, 2% prefer other fabrics like organzas, tussar, etc. As we can see a
huge no. of customers prefer cotton than any other material, major reason being the
climate and hence the store can offer more variety in cotton.

21
 Frequency of buying Apparels
1%
15%
Once in a Fortnight
35%
Once in a Month
46% Once in 6 Months
Once in a Year

This chart shows the frequency at which customers make purchase of apparels.
According to the chart, 48% of the respondents purchase apparels once in a month,
36% make purchases once in 6 months, 15% buy once in a fortnight, 1% buy once
in year. It can be seen that people do buy clothes atleast once in a month and hence
the store needs to take care of the changing fashions and try to offer customers
something new every time they visit.

This chart shows the occasions on which customers make purchase of apparels.
According to the chart, 60% of the respondents purchase apparels based on their
needs, 16% make purchases to gift, 12% buy on Birthdays/Anniversaries, 12% buy
for festivals.

22
 1st Visit to Panaji Fabindia

30%

Yes
70% No

This chart shows whether the customers visit to the store was the first one or
whether they were regular visitors. According to the chart, 70% of the respondents
were the regular visitors of the store where as only 30% of them were 1 st time
visitors.

Source to Panaji Fab

29% 18%
Internet
Word of Mouth
11% 42% Print Ads / Hoardings
Gift Vouchers

This chart shows 42% of the 1st time visitors were attracted to the store through word
of mouth from their friends & relatives, 29% of them through Gift Vouchers, 18%
through Internet and 11% through Print Ads & Hoardings. The store needs to provide
best of service and see to it that the customer is satisfied thoroughly with what has
been offered to him/her as 42% of the customers come to the store through word of
mouth.

23
This chart depicts the frequency, i.e. no of times a customer visits Fabindia‟s Panaji
outlet. 56% of the customers interacted with said that they visit the store once in a
month, 18% said once in 3 weeks, 16% said once in 2 weeks and 10% of them
visited the store once in a week.

The above chart tells us that 25% of the customers interviewed spend amount in the
range of 1300 – 1800 Rupees on apparels, where 24% spend in the range of 800 –
1300, 18% in the range of 2500 and above, 17% in the range of 1800 – 2300 and
16% in the range of 300 – 800.

24
 Expenditure on Home Furnishing
& Décor per year

14%
37% 5000-10000
19%
10000-15000
15000-20000
30%
20000 & above

This chart depicts that 30% of the customers spend in the range of 10000 – 15000
on furniture per year, 37% spend in the range of 5000 – 10000, 19% spend in the
range of 15000 – 20000 and only 14% spend in the range of 20000 & above.
Depending on this the store can decide as to how much of the store space should be
dedicated to which type of furniture.

Hardly, 35% of the total customers interviewed were aware of both the store of
Fabindia. This seems to be due to lack of advertisements and social interactions with
the public.

25
92% of the customers preferred the Panaji / Miramar outlet as compared to
Candolim outlet, major reason being most of the customers were the ones residing
in Panaji, Margao and Vasco and hence the Miramar outlet seemed more
convenient.

26
 RESULTS & ANALYSIS

Finding the dominant attribute by ranking them (1-Highest and 5-Lowest)

Ambience
Product Price
Rankings Service & Display
Range Range
Cleanliness
No. of 1’s (29x5)= 145 (19x5)=95 (18x5)=90 (35x5)=175 (29x5)=145
No. of 2’s (22x4)=110 (12x4)=48 (25x4)=100 (39x4)=156 (32x4)=128
No. of 3’s (16x3)=48 (37x3)=111 (23x3)=69 (21x3)=63 (33x3)=99
No. of 4’s (31x2)=62 (31x2)=62 (39x2)=78 (15x2)=30 (14x2)=28
No. of 5’s (32x1)=32 (31x1)=31 (25x1)=25 (20x1)=20 (22x1)=22
Total 397 347 362 444 422

Ranking of Factors influencing Customers

Decision
500
450
400
350
300
250
200
150
100
50
0
Product Range Price Range Service Ambience & Display of Products
Cleanliness

27
The above chart shows that it is the ambience and cleanliness of the store that
attracts customers. According to the data, the most influential factor is the
ambience and cleanliness the store maintains (444), followed by display of
products (422), product range offered by the store (397), service provided by the
sales staff (362) and then by the price range (347).

The above is calculated by adding the rankings of the attributes, for example in
the above table the total number of 1‟s received for Product Range is 29 and
these 29 responses are multiplied with 5 because it is the most preferred.
Similarly for Product Range the total number of 5‟s received is 32 and it being the
lowest value it is multiplied by 1 since it‟s the least preferred by those
respondents.

28
 HYPOTHESIS TESTING & ANALYSIS

Apparels Section

Product
Price Ambience &
Range / Service Display Total
Range Cleanliness
Variety

Satisfied 101 92 58 112 99 462

Neutral 27 36 38 14 25 140
Unsatisfied 2 2 34 4 6 48
130 130 130 130 130 650
2
Note: χ = 129.08, for v = 8, Significant Level at 0.10

fe fo fe-fo (fe-fo)2 (fe-fo)2/fe

101 92.4 8.6 73.96 0.73
92 92.4 -0.4 0.16 0.002
58 92.4 -34.4 1183.36 20.40
112 92.4 19.6 384.16 3.43
99 92.4 6.6 43.56 0.44
27 28 -1 1 0.04
36 28 8 64 1.78
38 28 10 100 2.63
14 28 -14 196 14
25 28 -3 9 0.36
2 9.6 -7.6 57.76 28.88
2 9.6 -7.6 57.76 28.88
34 9.6 24.4 595.36 17.51
4 9.6 -5.6 31.36 7.84
6 9.6 -3.6 12.96 2.16
129.08

29
 20.09
129.08

The null hypothesis is rejected as the χ2 value is greater than the chi square table
value found at 8 degree of freedom which is 20.09. We can observe that the
calculated value does not fall into the accepted (shaded) region and hence we reject
the null hypothesis and accept the alternate hypothesis. This depicts that the
customers who are satisfied with the product range are not as equal to the
customers satisfied with the price range, service, ambience & cleanliness and the
display of products in the Apparel Section of the store.

30
 Home Furnishing & Décor Section

Product
Price Ambience &
Range / Service Display Total
Range Cleanliness
Variety

Satisfied 94 70 48 91 94 397
Neutral 32 50 52 33 32 199
Unsatisfied 4 10 30 6 4 54
130 130 130 130 130 650
2
Note: χ = 77.28, for v = 8, Significant Level at 0.10

fe fo fe-fo (fe-fo)2 (fe-fo)2/fe

94 79.4 14.6 213.16 2.27
70 79.4 -9.4 88.36 1.262
48 79.4 -31.4 985.96 20.54
91 79.4 11.6 134.56 1.48
94 79.4 14.6 213.16 2.27
32 39.8 -7.8 60.84 1.90
50 39.8 10.2 104.04 2.08
52 39.8 12.2 148.84 2.86
33 39.8 -6.8 46.24 1.40
32 39.8 -7.8 60.84 1.90
4 10.8 -6.8 46.24 11.56
10 10.8 -0.8 0.64 0.064
30 10.8 19.2 368.64 12.29
6 10.8 -4.8 23.04 3.84
4 10.8 -6.8 46.24 11.56
77.28

31
 20.09
77.28

The null hypothesis is rejected as the χ2 value is greater than the chi square table
value found at 8 degree of freedom which is 20.09. We can observe that the
calculated value does not fall into the accepted (shaded) region and hence we reject
the null hypothesis and accept the alternate hypothesis. This depicts that the
customers who are satisfied with the product range are not as equal to the
customers satisfied with the price range, service, ambience & cleanliness and the
display of products in the Home Furnishing & Décor Section of the store.

32
 Organic Products Section

Product
Price Ambience &
Range / Service Display Total
Range Cleanliness
Variety

Satisfied 79 63 45 91 84 362
Neutral 46 55 45 31 37 214
Unsatisfied 5 12 40 8 9 74
130 130 130 130 130 650
2
Note: χ = 77.73, for v = 8, Significant Level at 0.10

fe fo fe-fo (fe-fo)2 (fe-fo)2/fe

79 72.4 6.6 43.56 0.55
63 72.4 -9.4 88.36 1.40
45 72.4 -27.4 750.76 16.68
91 72.4 18.6 345.96 3.80
84 72.4 11.6 134.56 1.60
46 42.8 3.2 10.24 0.22
55 42.8 12.2 148.84 2.71
45 42.8 2.2 4.84 0.11
31 42.8 -11.8 139.24 4.49
37 42.8 -5.8 33.64 0.91
5 14.8 -9.8 96.04 19.21
12 14.8 -2.8 7.84 0.65
40 14.8 25.2 635.04 15.88
8 14.8 -6.8 46.24 5.78
9 14.8 -5.8 33.64 3.74
77.73

33
 20.09
77.73

The null hypothesis is rejected as the χ2 value is greater than the chi square table
value found at 8 degree of freedom which is 20.09. We can observe that the
calculated value does not fall into the accepted (shaded) region and hence we reject
the null hypothesis and accept the alternate hypothesis. This depicts that the
customers who are satisfied with the product range are not as equal to the
customers satisfied with the price range, service, ambience & cleanliness and the
display of products in the Organic Product Section of the store.

34
 Jewellery Section

Product
Price Ambience &
Range / Service Display Total
Range Cleanliness
Variety

Satisfied 76 61 38 85 80 340
Neutral 48 62 57 39 44 250
Unsatisfied 6 7 35 6 6 60
130 130 130 130 130 650
2
Note: χ = 72.52, for v = 8, Significant Level at 0.10

fe fo fe-fo (fe-fo)2 (fe-fo)2/fe

79 68 11 121 1.53
63 68 -5 25 0.40
45 68 -23 529 11.76
91 68 23 529 5.81
84 68 16 256 3.05
46 50 -4 16 0.35
55 50 5 25 0.45
45 50 -5 25 0.56
31 50 -19 361 11.65
37 50 -13 169 4.57
5 12 -7 49 9.80
12 12 0 0 0.00
40 12 28 784 19.60
8 12 -4 16 2
9 12 -3 9 1.00
72.52

35
 20.09
72.52

The null hypothesis is rejected as the χ2 value is greater than the chi square table
value found at 8 degree of freedom which is 20.09. We can observe that the
calculated value does not fall into the accepted (shaded) region and hence we reject
the null hypothesis and accept the alternate hypothesis. This depicts that the
customers who are satisfied with the product range are not as equal to the
customers satisfied with the price range, service, ambience & cleanliness and the
display of products in the Home Jewellry Section of the store.

36
 CONCLUSION

Through the analysis it was found that few customers satisfied with product range,
some with the price; some with the service; some with the ambience and few of them
with the display of the products.

Also when the respondents were asked to rank the factors like product range, price
range, service, ambience & cleanliness and display of products, as shown in the 1st
table and graph, it was observed that the Ambience & Cleanliness of the Store was
the most important factor followed by display of products, product range, service and
price range offered.

Since Ambience and Cleanliness of the store was the top priority for the customers
to visit Fabindia, the store should try to maintain itself through regular cleaning. The
store can take following steps –

Clean the store regularly by proper sweeping and sobbing the floor.
All the shelves, furniture, counters, etc should also be cleaned regularly.
Spray room fresheners in the trial rooms at least twice in a day.
Play soft music so that customers can enjoy themselves. According to a study
conducted by IIM Ahmadabad Students where in it was found that if the store
plays music, customers tend to spend more time in the store which often
leads to impulsive buying.
It was noticed that customers used to take the merchandise outside the store
to see how the colour looked. Proper lighting has to be done in order to
enable customers to shop properly. The store can put double day & night
bulbs in the trail rooms to help the customers with such problems.
The store needs to clean the premises of the store also. The entry road to the
store needs to be done properly.

The store can try to reduce the price of the merchandise or come up with discount
schemes at least for its regular customers. The store should also try and keep more

37
variety of apparels so that the customer has enough options to choose from. It was
noticed that 68% of the respondents preferred cotton clothes, so the store can
produce more of cotton clothes than of polyester or synthetic ones. It was also
noticed that the merchandise were not properly labeled with reference to the sizes.
Customers often complained about colour bleeding and shrinkage of apparels
bought. The store can provide exchanges or at least see to it that washing
instructions are given by each and every employee to the customer they attend. The
customers should be provided with shopping bags while they are shopping in the
store.

Service staff needs to be properly trained. It was noticed that they had no proper
information about the merchandise available. More of women sales staff should be
employed as women are more comfortable when they are assisted by women sales
staff than men. Most of the times, the customers were left unattended and the
employees remained busy in stocking the apparels rather than assisting them. The
store can adopt few motivational techniques like “Best Employee of the Month” to
boost the employees. The organic products section has no sales staff to assist the
customers with their queries.

38
 REFERENCES

1. V. Krishna Mohan, P. Pinkapani and MSR Sesha Giri (2008) “Dynamics of

Retail Market” Service Marketing, ICFAI University Press (VI) 3, pp. 20 – 27.

2. Amit Kumar Sinha (2005), “Gender difference among adolescences as

influences and impact of communication in the family purchase decision – a
study”, Marketing Management, ICFAI University Press (IV) 4, pp. 50 – 59

3. Mdhurime Deb and Gautam Sinha (2007), “Importance of Service Quality,”

Marketing Management, ICFAI University Press, (VI) 1, pp. 6 -15

4. Valsamma Antony (2009), Small retail stores strive on Customer Relations,

Marketing Mastermind, ICFAI University Press, 68-70.

5. Sukanya Ashokkumar,(2005),Private Labels: Regional Consumer Perception,

Advertising Express, ICFAI University Press, pp.55-59

6. Sunayna Khurana (2008), “Consumer Expectation & Perception – A Study of

Retail in Hariyana,” Consumer Behaviour, ICFAI University Press, (III) 3, pp.
47 – 57

7. Paromita Goswami (2007), “Apparels Shopping Behaviour of Urban Indian

Students,” ICFAI University Press, (VI), 4, Pg.. 47

8. Derry Law, Joanne Yip, “The Impact of Visual Merchandising on Consumer

Decision Process for Intimate Apparels”. The report is available at –
9. http://www.scribd/pdf/ceo5ate90200700065/

10. Sonia (2008), “Customer Perception towards Mega Mart”, Service Marketing,
ICFAI University Press, (VI) 4, pp. 38 – 48

39
 11. Kumar Gaurav (2008), “Impact of Relationship Marketing Strategy on
Customer Loyalty”, ICFAI Journal of Marketing Research, (VII) 2, Pg. 7

12. Meera Mullick-Kanwar,(2005), The Evolution of Private Label Branding,

Advertising Express, ICFAI University Press, pp.27-34

13. Abhigyan (2008), “Latest trends in consumer buying behaviour in Lifestyle”,

Management Research, ICFAI University Press, (VII) 6, pp. 70 – 81

14. J.K. Nandi (2007), “An alternative mode to improve productivity in 21st
century”, Marketing Research, ICFAI University Press, (VI) 1, pp. 7 – 15.

15. Hye-Shin Kim, Byuongho Jin, (2006), Exploratory study of virtual

communities of apparel retailers, Journal of fashion marketing and
management, Emerald group publishing ltd. (X) 1, pp.41-55

16. Despina K (2008), Buyers satisfaction on purchasing decision and relative

contribution of promotions tools, ICFAI university marketing management,
IUP, vol. 8 no. 1, pp.6-14.

Websites Referred:

http://www.indianground.com/retail/retail-sector-in-india.aspx

http://business.mapsofindia.com/india-retail-industry/emerging-trends-in-
indian-organized-retail-sector.html

http://www.indiaretailbiz.com/blog/category/retail-trends/

http://www.marketresearch.com/product/display.asp?productid=1270959

40
http://retailguru.blogspot.com/2006/01/retail-trends.html

http://india.retailmantra.com/2009/10/promising-formats-chains-in-india.html

http://india.retailmantra.com/2009/10/emerging-trends-in-retail-sector.html

http://www.fibre2fashion.com/industry-article/22/2141/social-accountability-in-
indian-apparel-industry1.asp

http://www.fibre2fashion.com/industry-article/22/2141/social-accountability-in-
indian-apparel-industry2.asp

http://www.fibre2fashion.com/industry-article/22/2141/social-accountability-in-
indian-apparel-industry3.asp

http://www.fibre2fashion.com/industry-article/22/2177/visual-merchandising-a-
smart-model1.asp

http://www.fibre2fashion.com/industry-article/22/2177/visual-merchandising-a-
smart-model2.asp

http://www.1000ventures.com/business_guide/crosscuttings/customer_satisfa
ction.html

http://www.ibef.org/artdisplay.aspx?cat_id=391&art_id=4705

http://www.goaretail.com/

http://www.chinadaily.com.cn/en/doc/2003-10/08/content_269953.htm

http://bimtech-retail.com/blog/2008/india-retail-report-2009/

http://business.mapsofindia.com/india-retail-industry/challenges-facing-the-
indian-organized-retail-sector.html

41
 Annexure

Questionnaire

42
 In order to serve YOU better in future, we would like to know Your
Preferences

Questionnaire
Name:

Sex:

Age:

Are you a Resident of Goa:

1. What type of clothes do you usually prefer?

a. Formals b. Casuals
c. Denims d. Traditional

2. What type of Fabric do you prefer?

a. Cotton b. Synthetic
c. Silks d. Polyester
e. Any other_________________________

3. How frequently do you purchase clothes?

a. Once in a Fortnight b. Once in a month
c. Once in 6 months d. Once in a year

4. On what occasions do you buy clothes / apparels?

a. During Festivals
b. Birthdays / Anniversaries
c. To Gift
d. Based on the need

5. Which are your preferred Brand / Store?

__________________________________________________________________

6. Rank the following factors on the scale of 1 – 5 based on your decision to visit Fabindia
or buy the products. (1 being the least to 5 being the highest)

a. Range of Products made available ( )

b. Price Range offered ( )
c. Service provided by the Staff ( )
d. Ambience & Cleanliness in the Store ( )
e. Display of the goods ( )

7. Is this your first visit Fabindia?

a. Yes
b. No

P.T.O

43
 i. If yes, how did you get to know about Fabindia?
a. Internet b. Word of Mouth
c. Print Ads / Hoardings d. Gift Vouchers
e. Any Other ______________________________________

ii. If no, how often do you visit Fabindia?

a. Once in a week b. Once in 2 weeks
c. Once in 3 – 4 weeks d. Once in a month

8. How much do you generally spend on clothes in Fabindia?

a. 300 – 800 b. 800 – 1300
c. 1300 – 1800 d. 1800 – 2300
e. 2500 and above

9. How much do you generally spend on Home Furniture & Furnishings per year?
a. 5000 – 10000 b. 10000 – 15000
c. 15000 – 20000 d. 20000 and above

10. In Goa did you visit both the outlets?

a) Yes b) No

11. Which store do you often visit?

a) Miramar b) Candolim

i. And why?

__________________________________________________________________
__________________________________________________________________
___________________________________________________

12. Rate your experience at Fabindia in terms of your satisfaction level for the following:

Highly Satisfactory: 5 Satisfactory: 4 Average: 3

Unsatisfactory: 2 Highly Unsatisfactory: 1

Products Service Price Range Ambience & Display of

Range / provided by Offered Cleanliness of Goods in the
Variety the Sales the Store Store
Staff
Apparels
Dept. (Men
& Women)
Home
Furnishing
& Décor
Organic
Products

Jewelry

44
13. Which products would you want Fabindia to launch?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

14. Do you have any suggestions to enable us to serve you better in future?

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________

Thank You for your Valuable Time & Support…!!!!

45