A Study On Customer Perception in Modern Food Retail Out Lets With Special Reference To Bangalore

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9463
INTERNATIONAL JOURNAL OF RESEARCH REVIEW IN ENGINEERING
AND MANAGEMENT (IJRREM)
Tamilnadu-636121, India
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ISSN NO (online) : Application No : 19702 RNI –Application No 2017103794
A Study on Customer Perception in Modern Food Retail out Lets

with Special Reference to Bangalore
Dr .R.MURUGESAN M.COM, MBA, M.PHIL PHD

Associate professor
Department of Management Studies
PSV College of Engineering & Technology
Krishnagiri 635108 Tamilnadu .India
Mail id : murugesanphd80@gmail.com
ABSTRACT
Marketing is a social and managerial process by which individuals and organization
obtain what they need and want through creating and exchanging value with others. In a
narrower business context, marketing involves building profitable, value-laden exchange
relationships with customers. Hence marketing as the process by which companies create
value for customers and build strong customer relationships in order to capture value from
customers in return. To know about the customer perception towards modern food retail
outlets of the Safal. To find out the popularity of Safal in Bangalore city. To study about the
buying behavior of the customers. It helps to analyze the satisfaction level of the customers
towards Safal.It helps to collect the required data related to the problems faced by the
International Journal of Research Review in Engineering and Management

(IJRREM),Volume -3,Issue -1,Jan-2019,Page No:66-92,Impact Factor: 2.9463, Scribd Impact
Factor :4.7317, academia Impact Factor : 1.1610
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company. To know about the food products which are satisfied by the customers Statistical
tools: The statistical methods, which are used, for the research are: Percentage analysis Chi –
square analysis This study also revealed many unknown facts to the researcher about the
retail outlets. From the study conducted on the customer perception on retail outlets, it was
found that there is various attributes of the Safal like satisfaction related to price, quality, and
preference before purchase, etc. the Safal retail outlets can welcome the views and
suggestions given by the respondents to improve the Safal retail outlets. With the help of
above data gathered it is clear that customer perception towards modern food retail outlets
plays a vital role in retail industry and it is inevitable for any retail sector to avoid it. Overall
we can say that the customer perception towards Safal retail outlets seemed to be good and
they can continue with some minute changes so that it helps the safal to achieve the mission.
Keywords: creating and exchanging, customer relationships, satisfaction, customer

perception
CHAPTER-1
1.1. INTRODUCTION
It is an opportunity for me to understand the customer perception about modern food

retail outlet. As retail industry is growing much faster than the expectation. Now a day it is
observed that retail industries contribute more towards GDP. As retail industry is booming all
over the world.Safal Market is one of the main food retail outlets in Bangalore. It gives me an

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opportunity to study the modern food retailing. And also it helps me to understand customer
perception towards the modern food retail outlets.
The report consist study of customer perception towards modern food retail outlets of
the Safal. And the report also consist brief introduction followed by statement of problem,
objective of study, scope of study, limitation along with industry profile and company profile.
The study in food retail outlets like Safal will be very helpful for us to know about the
Customer Perception. Research was conducted to know the various attributes of the Safal
like, satisfaction related to price, quality, and preference before purchase, etc
In research part of the dissertation study, a sample size of 100 was considered. The
respondents were selected randomly from various areas in Bangalore having Safal food retail
outlets. A survey was conducted with the self administered (consisting of both structured and
unstructured questions) for respondents. The research was confined mainly to Bangalore. The
data collected in this manner were then used for analysis and finding out the results.
This study also consists of the methodology used to collect the required data related to
the problem faced by company. And necessary in analysis and interpretation is done and also
findings and suggestions are provided. The findings of the study revealed that though Safal is
under going lack of promotional activities when compared to other food retail outlets, still it
has a good market presence. From this it can be revealed that the customers are satisfied by
the quality of food products offered by Safal compare to other food retail outlets.
THEORITICAL PERSPECTIVE

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MARKETING
Marketing is a social and managerial process by which individuals and organization

obtain what they need and want through creating and exchanging value with others. In a
narrower business context, marketing involves building profitable, value-laden exchange
relationships with customers. Hence marketing as the process by which companies create
value for customers and build strong customer relationships in order to capture value from
customers in return.
A business organization exists because of marketing. Marketing is the springboard of

all the activities. It acts as a guide to all business organization. The success of the business
depends on “how the marketing strategy is formed and implemented. Marketing is the eyes
and ears of business organization because marketing keeps the business in close contact with
us economic, political, social, technological environment and informs.Marketing is process
by which individuals and groups obtain what they need and want through creating, offering,
and freely exchanging products and services for money.
CUSTOMER SATISFACTION
Satisfaction is a person’s feeling of pleasure or disappointed resulting from comparing

a product’s perceived performance (or outcome) in relation to his or her expectation.The
companies should aim for high satisfaction, because customers who are just satisfied still find
it easy to switch when a better offer comes along, but the marketers should not raise the
expectations too high because it may lead to disappointment.It may be easy to attract
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customers, but it is difficult to retain them. It requires a great deal of effort to induce satisfied
customers to switch away from their current brand and suppliers. Developing more loyal
customers increases the company’s revenue. The main aim of marketing is to satisfy its target
customer needs and wants. For this purpose it should fully understand the consumer markets
and buying behaviour
CONSUMER BEHAVIOR, ANALYSIS OF CONSUMER MARKET & BUYING

BEHAVIOR
Consumer buying behaviour first determine their needs then search for the
information on brands that might fill their needs next evaluate alternative brand choice and
finally choose the brand that feel will most likely fill their needs.Decisions will vary
depending on the extent to which such information search and brand evaluation takes place.
They will also vary depending on the degree of involvement of the consumer with the brand.
Complex decision making involves extensive information search and brand evaluation.
Where brand loyalty exists, information searches are minimal. In low involvement decision
making, the consumer want to minimize the time and effort spent in selecting a brand.
RETAILING
The distribution of consumer products begins with the producer and ends at the
ultimate consumer. Between the producer and the consumer there is middleman-the retailer,
who links the producers and the ultimate consumers. Retailing is defined as conclusive set of
activities or steps used to sell a product or a service to consumers for their personal or family
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use. It is responsible for matching individual demands of consumer with supplies of all
manufacturers. The word ‘retail’ is derived from the French word retailer, meaning ‘to cut a
piece off ‘or ‘to break bulk’.
A retailer is a person, agent, agency, company, or organization which instrumental in

reaching the goods, merchandise, or services to the ultimate consumers. Retailers perform
specific activities search as anticipating customer’s wants, developing assortments of
products, acquiring market information, and financing. A common assumption is that
retailing involves only the sale of products in stores. However, it also includes the sale of
services like those offered at a restaurant, parlour, or by car rental agencies. The selling need
not necessarily take place through a store. Retailing encompasses selling through the mail,
the Internet, door-to-door visits-any channels that could be used to approach the consumer.
CUSTOMER
A particular individual who acquires or imports property or a service for his or her
personal consumption, use or enjoyment, or for the personal consumption use or enjoyment
of another individual at the particular individual’s expense.
CUSTOMER PERCEPTION
Perception is defined as the process by which an individual select, organizes, and

interprets stimuli into a meaningful and coherent picture of the world. It can be describe as
“how we see the world around us”.Perception can be defined as “how we see the world

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around us”. Two individual may be subject to the same stimuli under the same apartment
condition how each person recognize them and interprets them is a highly individual process
based on each person own needs, values and expectations.“Perception is defined as the
process by which an individual selects, organizes and interrupts stimuli into a meaningful and
coherent picture of the world”.The stimulus is any unit of input to any of these senses.
Secondary receptors are human organ that receive sensory input as eyes, ears, mouth and
skin.
Chapter-II
2.1.OBJECTIVES OF THE STUDY
 To know about the customer perception towards modern food retail outlets of the
Safal.
 To find out the popularity of Safal in Bangalore city.
 To study about the buying behavior of the customers.
 To study about the satisfaction level of the consumers towards Safal.
 To offer effective suggestion to improve the market position of the company.
2.2.SCOPE OF THE STUDY
 The study covers the city limit of Bangalore.

 The study covers the market potential of food retail outlets.
 The study covers all-important information about product of Safal.

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 The study gives a brief analysis of consumer preferences, attitudes, and perception
toward buying a product in food retail outlets.
2.3. NEED OF THE STUDY
 It helps to analyze the satisfaction level of the customers towards Safal.

 It helps to collect the required data related to the problems faced by the company.
 To know about the food products which are satisfied by the customers.
 To know about the interaction with customers while shopping in Safal food retail
outlets.
 To provide the home delivery services to make the customers satisfy.
2.4. LIMITATIONS OF THE STUDY

 The sample size of only 100 was fixed and the study was based on those samples.
Due to time constraints only 100 respondents were interviewed.
 This study is conducted in Bangalore City only.
 Data given by the respondents are limited to the customer’s own attitude, perception,
knowledge and awareness.
 Response collected from the respondents may be sometimes biased.
 The project required analysis of different areas but due to the time constraint it was
difficult to carry the study in depth.
CHAPTER - III

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3.1.REVIEW OF LITERATURE
Mitchell, Kiral (1998), in their study "Primary and secondary store-loyal customer
perceptions of grocery retailers" found that Gaining competitive advantage in retailing
requires knowledge of the attributes consumers use to evaluate stores and an understanding of
why these attributes are important. Although a number of store-image studies have identified
store attributes, evidence suggests that these attributes vary by store type and over time, but
no work has considered the most crucial aspects to retailers, namely store loyalty. As no
study has examined the links between store attributes and store loyalty, our knowledge
remains largely speculative. This article explores this link using Kelly's repertory grid
methodology to assess the store images of three UK grocery retailers. Important differences
were seen between primary store-loyal customers’ perception of their store and secondary
store-loyal customers’ perception of that store. For example, primary-loyal Tesco customers
perceived quality, convenience and value factors in that order of importance, whilst primary-
loyal Kwik-Save customers perceived quality, value and convenience factors when
considering Tesco. Implications for retail positioning strategies and the development of store
loyalty are discussed.
Justin Beneke (2010), in his study “Consumer perceptions of private label

brands within the retail grocery sector of South Africa”, this exploratory study serves to
investigate the perceptions of fast moving private label brands in the South African grocery
food sector. Successful positioning of these brands has been achieved globally, most notably in
developed markets. However, in a South African context this does not appear to be the case.

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To this end, research has been undertaken in order to better understand the current position
these brands occupy in the minds of South African consumers. Included in the study is the
consideration of critical branding elements such as trust, availability, pricing, packaging, etc.
The knowledge gained through this research should ideally facilitate the process of advancing
private label brand research in an academic context and improving brand positioning,
increasing market share and optimizing profit extracted from private label brands in a
managerial context.
Karin Venter, Elizabeth Kempen (2011), in their study“Consumers' perceptions of

food packaging: an exploratory investigation in Potchefstroom, South Africa”, found
Consumers form perceptions of various food products through their comprehension of the
visual stimuli on food packaging that attract their attention. These perceptions directly affect
their purchasing decision at the point of purchase, which emphasizes the importance of
attention-capturing packaging attributes. However, little research is available regarding
consumers' perceptions of food packaging, especially in the South African context. This
study aimed to explore a sample of South African consumers' perceptions of food packaging
and how these perceptions were formed through the perceptual process. A qualitative,
exploratory study was conducted by means of 25 semi-structured interviews and through the
use of ambiguous mock packaging as a projective technique. Participants were questioned
regarding their general perceptions of food packaging. The attention-capturing ability of
packaging as well as consumers' interpretation of this packaging after exposure to the mock
packaging was also discussed. Findings from the study indicated that participants mainly
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based their perception of food packaging on its functional (being purposive, recyclable and
informative) and physical attributes (being attractive, of high quality and hygienic). This
study also indicated that information and visual attributes of packaging are important to gain
consumers' attention in-store. Participants' comprehension of packaging included general
associations of specific food products with certain types of packaging, such as associations
with quality and shelf life. Negative associations with packaging mostly entailed difficulty to
handle the product, poor quality of the product and environmental problems. This study
identifies those product attributes that participants regarded as the most important stimuli for
forming positive perceptions regarding food packaging. It is important for manufacturers to
pay attention to the information on perceptions that was gained in this study, as it might help
them to create packaging that better fulfil consumer needs. These findings could also be
applied in a larger study of a quantitative nature, which will ultimately result in more positive
consumer shopping experiences and consumer satisfaction regarding food packaging.
3.2.RESEARCH METHODOLGY
Research methodology is a way to systematically solve the research problems. It may

be understood as a science of studying how research is done systematically. It includes the
overall research design, the sampling procedure, data collection method and analysis
procedure.
RESEARCH DESIGN

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The formidable problem that follows the task of defining the research problem is the
preparation of the design of the research project, popularly known as the “Research
Design”.Decisions regarding what, where, when, how much, by what means concerning an
inquiry or a research study constitute a research.“A research design is the arrangement of
conditions for collection and analysis of data in a manner that aims to combine relevance to
the research purpose with the economy in procedure”.In fact the research design is the
conceptual structure within which research is conducted; it constitutes the blue print for the
collection, measurement and analysis of data.
TYPE OF RESEARCH DESIGN:
The Research Design used here in this project is DESCRIPTIVE RESEARCH

DESIGN.
DESCRIPTIVE RESEARCH DESIGN:
Descriptive research studies are those studies which are concerned with describing the
characteristics of a particular individual, or of a group. This study concerned with specific
predictions, with narration of facts and characteristics concerning individual, group, or
situation are all examples of descriptive research studies. Most of the social research comes
under this category.
The Researcher must be able to define clearly, what he/ she wants to measure and must find
adequate methods for measuring it along with a clear cut definition of “ Population” he/she

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wants to study.Since the aim is to obtain complete and accurate information in the said
studies, the procedure to be used carefully planned.
The research design must make enough provision for protection against bias and must
maximize reliability, with due concern for the economical completion of the research
study.The Design in such studies must be rigid and not flexible and must focus attention on
the following:
a) Formulating the objective of the study (what the study is about and why is it being
made?)
b) Designing the methods of data collection (what techniques of gathering data will
be adopted?)
c) Selecting the sample (how much material will be needed?)
d) Collecting the data (where can the required data found and with what time period
should the data be related?)
e) Processing and analyzing the data
f) Reporting the findings
In a descriptive study the first step is to specify the objectives with sufficient precision
to ensure that the data collected are relevant. If this I not done carefully, the study may not
provide the desired information.

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Then comes the question of selecting the methods by which the data are to be
obtained. In other words, techniques for collecting the information must be devised. Several
methods (viz.., observation, questionnaires, interviewing, examination of records etc…) with
their merits and limitations are available for the purpose and the researcher may use one or
more of these methods.
SAMPLING DESIGN/TECHNIQUES
Sampling is the process of selecting a few from a bigger group to become the basis for
estimating or predicting a fact, situation or outcome regarding the bigger group.
SAMPLING DESIGN USED FOR THE STUDY
RANDOM SAMPLING
Sampling design is to clearly define set of objects, technically called the universe to
be studied. This research has definite set of universe and the sampling design used in the
study is Random sampling. Sampling technique used is Random sampling.
SAMPLE UNIT/SAMPLE SIZE
The Company, which is considered for this study, is “Safal Fruit and Vegetables
Auction Market”.The sample taken or the study is 100. The method adopted for selecting
the sample was Random sampling.Researcher has used both primary and secondary data to
gather more information.

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PRIMARY DATA:
The primary data are those which are collected freshly and for the first time and thus
happen to be original in character. The main sources of primary data are individuals, focus
groups, panels of respondents specifically set by the researcher. It has been collected through
a questionnaire.
SECONDARY DATA:
The secondary data are those which have already been collected by someone else and
which have already been passed through the statistical process. The company profile and
records, textbooks, website and internet were used to collect the secondary data.
STATISTICAL TOOLS:
The statistical methods, which are used, for the research are:
o Percentage analysis
o Chi – square analysis
CHAPTER-IV
ANALYSIS AND INTERPRETATION
4.1.CHI-SQUARE ANALYSIS

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Chi – square is a statistical measure used in the context of sampling analysis for comparing a
variance to a theoretical variance. It is a non – parametric test. Chi – square is used to show
the dependency or to determine whether the two classifications are independent.
(𝒙𝒙−𝒙𝒙)𝒙
𝒙 𝒙 = ∑𝒙
𝒙=𝒙 𝒙𝒙
Where,
Oi = Observed Frequency
Ei = Expected Frequency
Association between marital status and quantity of customers purchase in food products
H0 (Null Hypothesis): There is no significant difference between the marital status and
quantity of customers purchase in food products.
H1 (Alternative Hypothesis): There is significant difference between the marital status and
quantity of customers purchase in food products.
Marital status and quantity of customers purchase in food products.
SL.NO Marital Small As required Bulk Total

status amount
1 Married 12 41 07 60

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2 Unmarried 09 27 04 40
Total 21 68 11 100
Calculating Chi-square Value
O E (O-E) (𝐎 − 𝐎)𝐎 /E
12 12.60 -0.6 0.028
41 40.80 0.2 0.0009
07 6.60 0.4 0.024
09 8.40 0.6 0.042
27 27.20 -0.2 0.001
04 4.40 -0.4 0.036
CALCULATED CHI -SQUARE VALUE 0.1319
CHI-SQUARE TEST:
Table value: (c-1) (r-1) = 2x1=2
Chi square 2 Degrees of Freedom: at 5% level is 5.99

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Hence Calculated Value < table value
INFERENCE:
Therefore Table value is greater than calculated value, So Alternative hypothesis H1

is rejected and Null hypothesis H0 is accepted, and hence there is no significant difference
between the marital status and quantity of customers purchase in food products.
4.2.Association between gender and pricing of the products
H0 (Null Hypothesis): There is no significant difference between the Gender and Pricing of
the products.
H1 (Alternative Hypothesis): There is significant difference between the Gender and Pricing
of the products.
: Gender Vs Pricing of the products.
SL.NO Gender High Almost Low Total

same
1 Male 20 15 18 53
2 Female 16 16 15 47
Total 36 31 33 100

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O E (O-E) (𝐎 − 𝐎)𝐎 /E
20 19.08 0.92 0.044
15 16.43 -1.43 0.124
18 17.16 0.84 0.041
16 16.92 -0.92 0.050
16 14.57 1.43 0.140
15 15.51 -0.51 0.016

CHI-SQUARE TEST:
INFERENCE:
Therefore Table value is greater than Calculated value, So Alternative hypothesis H1

is rejected and Null Hypothesis H0 is accepted, hence there is no significant difference
between the gender and pricing of the products.

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4.3.Association between the age and buying behavior of the customers
H0 (Null Hypothesis): There is no significant difference betweenthe age and buying

behavior of the customers.
H1 (Alternative Hypothesis): There is significant difference between the age and buying
behavior of the customers.
Age Vs Buying behavior of the customers.
SL.NO Age High Almost Low Total

same
1 Below 30 22 10 12 44
2 Above 30 26 19 11 56
Total 48 29 23 100
O E (O-E) (𝐎 −
𝐎)𝐎 /E
22 21.12 0.88 0.0366
10 12.76 -2.76 0.5969

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12 10.12 1.88 0.3492
26 26.88 -0.88 0.0288
19 16.24 2.76 0.4690
11 12.88 -1.88 0.2744

CHI-SQUARE TEST:
INFERENCE:

between the age and buying behaviour of the customers.
4.4.Association between the monthly income and maintaining friendly relationship and
supporting environment

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H0 (Null Hypothesis): There is no significant difference betweenthe monthly income and

maintaining friendly relationship and supporting environment.
H1 (Alternative Hypothesis): There is significant difference between the monthly income

and maintaining friendly relationship and supporting environment.
Table Monthly income and maintaining friendly relationship and supporting environment.
SL.NO Monthly Agree Neutral Disagree Total

Income
1 Below 20000 34 21 08 63
2 Above 20000 22 11 04 37
Total 56 32 12 100
O E (O-E) (𝐎 − 𝐎)𝐎 /E
34 35.28 -1.28 0.046
21 20.16 0.84 0.035
08 7.56 0.44 0.025
22 20.72 1.28 0.079

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11 11.84 -0.84 0.059
04 4.44 -0.44 0.043

CHI-SQUARE TEST:
INFERENCE:

between the monthly income and maintaining friendly relationship and supporting
environment.
CHAPTER-V
FINDINGS AND SUGGESTIONS
5.1 FINDINGS
 53% of respondents are Male and 47% of respondents are Female.
 42% of respondents lie between the age group Above 40.
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 60% of respondents are married and 40% respondents are unmarried.

 50% of respondents are Private Employees.
 33% of respondents lies under the Income 10000 - 20000.
 62% of respondents visit monthly to the Safal food retail outlets.
 37% of respondents know about the Safal food retail outlets through friends.
 56% of respondents buy the products in Safal because of quality.
 91% of respondents are satisfied with the food products in Safal food retail outlets.
 68% of respondents prefer that the customers purchase required amount of food
products.
 36% of respondents said that from 6 to 10 minutes the time will take for billing
purpose.
 44% of respondents are satisfied with the home delivery services to the customers.
 30% of respondents frequently and on requirement they interact with the customers.
 31% of respondents said pricing of the products in Safal is almost same.
 31% of respondents said that the buying behavior of the customers is high.
 56% of respondents agree that Safal maintain friendly relationship and supporting
environment.
 31% of respondents said that the satisfaction level of the customers is almost same.
 43% of respondents face a problem because of availability.
 44% of respondents are not sure about recommendingSafal to near ones.

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 There is no significant difference between the marital status and quantity of customers
purchase in food products.
 There is no significant difference between the gender and pricing of the products.
 There is no significant difference between the age and buying behavior of the
customers.
 There is no significant difference between the monthly income and maintaining
friendly relationship and supporting environment.
5.2 SUGGESTIONS
 Safal can improve and maintain the quality regularly.

 Safal retail outlets can reduce the price compared to other food retail outlets.
 Price can be less as middle class people can afford.
 The availability of the productscan be any time.
 Good lighting facility inside the shop can be provided.
 Safal can increase the number of retail outlets in all area and cities.
 Home delivery services can be provided to customers as and when they need.
 Safal retail outlets can give attractive offer atleast once in a weak.
 More friendly and supporting environment can be created by the sales counter people.
 The number of bill counters can be increased so that the customers need not wait for
billing.

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 Space consignment can be increased between the rows and maintain cleanliness in the
outlets.
 The sales promotional activities like discounts, offers, lucky draws etc can be
increased.
 Parking facility to the customer’s vehicle can be provided.
 Safal can reduce the price of the products because the customers are facing problem to
purchase products due to high price.
5.3.CONCLUSION
From the study done on Customer perception towards modern food retail outlets of
the Safal. The researcher found that there is a very good customer perception about the Safal.
Many of the respondents given their opinion that about their perception which helps in
identifying customer needs and it also helps in improving the retail outlets. The resulted
report has been of great help to the researcher to understand the functioning of a major
establishment. This study also revealed many unknown facts to the researcher about the retail
outlets. From the study conducted on the customer perception on retail outlets, it was found
that there is various attributes of the Safal like satisfaction related to price, quality, and
preference before purchase, etc. the Safal retail outlets can welcome the views and
suggestions given by the respondents to improve the Safal retail outlets. With the help of
above data gathered it is clear that customer perception towards modern food retail outlets
plays a vital role in retail industry and it is inevitable for any retail sector to avoid it. Overall

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we can say that the customer perception towards Safal retail outlets seemed to be good and
they can continue with some minute changes so that it helps the safal to achieve the mission.
References
1. ChaudhuriA,HolbrookM(2001),“TheChaineffectsfrombrandTrustandbrandeffecttobra
ndperformance:Theroleofbrandloyalty”,J.Mark.65(2): 81-93.
2. DickA,JainA,Richardson P(1997),“How consumersevaluatestorebrands”, J. Prod.
BranagendMament,5(2):18-24.
3. Justin Beneke(2010), “Consumer perceptions of private labelbrandswithinthe
retailgrocerysector of SouthAfrica”, AfricanJournalofBusinessManagementVol.
4(2), pp. 203-220.
4. Karin Venter and Elizabeth Kempen(2011), “Consumers' perceptions of food
packaging: an exploratory investigation in Potchefstroom, South Africa”,
International Journal of Consumer Studies, Volume 35, Issue 3, pages 273–281.
5. V.-W. Mitchell, R.H. Kiral (1998), "Primary and secondary store-loyal customer
perceptions of grocery retailers", British Food Journal, Vol. 100 Iss: 7, pp.312 - 319

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