A Project report on Perception of Indian Consumers on the Service Quality offered By Hypermarkets and Supermarkets

Submitted to: Dr. Shahida P. Asst. professor Marketing

Submitted by: Adarsh Pratap Singh M4-03 Brahmraj Pandey M4-15 Jayavardhan . M4-19 Ritesh Kumar M4-35 Siva ram prasad M4-45

CONTENTS

Introduction research and review of literature

Overview of the functioning of hypermarkets in INDIA

Research methodology

Findings

Conclusion

INTRODUCTION RESEARCH OBJECTIVES AND REVIEW OF LITERATURE

Introduction
This study empirically examines the perceptions of Indian consumers on the service quality offered by supermarkets.

Research objectives
y y y Hypothesis:(1). H0: there is no impact of physical appearance on the customers H1: there is impact of physical appearance on the customers (2). H0: All the brands are not available in the store H1: All the brands are available in the store (3) H0: there is no impact of competence of service provided by the hypermarkets H1: there is impact of competence of service provided by the hypermarkets To find out the whether there is any impact of physical appearance of the store on the customer. To find out whether all the brands are available at the stores or not. To find out the customer satisfaction regarding the services provided by the hyper markets.

Overview of the functioning of hypermarkets in INDIA: Liberalization of the economy in the nineties and the entry of large players in the retail business have Brought the retail industry into spotlight. Big players and national retail chains are changing the rules of the game. After supermarkets, departmental stores and convenience stores, Indian retail has seen Concept of hypermarkets coming of age. The hypermarkets are not new to the western countries. Players like Wal-mart, Metro have established hypermarkets in many countries. In India, hypermarket concept is in nascent stage, retailers like Pantaloons and RPG have started hypermarket operations and they are having plans to expand aggressively to all the regions of India. A large number of international retailers have evinced interest in India, despite the absence of favorable government policy for foreign players. India has one of the largest unorganized retail markets in the world. More than 96% retailers function in less than 500Sq.Ft of area. India's per capita retailing space is thus the lowest in the world. Given the size, and the

geographical, cultural and socio-economic diversity of India, there is no role model for Indian suppliers and retailers to adapt or expand in the Indian context. The industry is witnessing the development of region-specific formats. With organized retail penetrating into B class towns, larger discount formats, popularly known as hypermarkets, are now emerging as major competitors for both unorganized and organized retailers. Penetration of organized retail into the lower income groups and increasing consumer demand for value-for-money has improved the prospects of these formats. It offers customers a wide array of low-priced products ranging over categories like groceries, processed food, fresh food, apparel and consumer durables. On an average in India it is spread over 50,000 sq. ft. There are more than 25,000 SKUs (Stock Keeping Units). The margins and discount rates on various product categories have been discussed. In case of Hypermarket the largest part of their operating cost goes towards rentals. High costs arises from labor, social security to employees, high quality real estate, bigger premises, comfort facilities such as air-conditioning, back-up power supply, taxes etc. Degree of personal involvement and information dependency are the two crucial factors which affect the purchasing behavior of the customer. Recent years have witnessed a sizeable growth in organized retail space in the major Indian cities. Real estate is the most important parameter deciding the profitability of any store. Real Estate in terms of location as well as the cost associated with it will affect the footfalls and the finances of the company. Major development happenings in the area of retail space in India are hypermarkets and malls. India is witnessing an exponential growth in the space occupied by organized retailers. The major places where these malls are coming up are Mumbai, Delhi, Bangalore and Pune. Indian retail industry is still a "protected industry" from foreign direct investment (FDI). Though FDI can help generate employment in this sector, it is likely to pose stiff competition for existing small businesses. Unlike the country's FDI investment objective of technology transfer and export promotion in 1980s, today's infusion of capital can bring in issues like size of investment, percentage of stake or ownerships in the company and takeovers of domestic companies by foreign giants.

RESEARCH METHODOLOGY
One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the marketers to know the impact of factors on perceptions of consumers of hyper markets.

Data sources
Project was totally based on primary data. Research has been done by primary data collection. Primary data has been collected by interacting with customers of Secunderabad. Data collection

The sample of the study was taken in a random manner. Sample was collected through personal visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The sampling was carried out in Kompally, Secunderabad. The sample size of our project was limited to 50 respondents only.

Research Design
Statistical package for Social science (SPSS) is used for data analysis purpose. Following statistical tools were used in the study: 1. Factor analysis Factor analysis is a statistical method used to describe variability among observed variables in terms of fewer unobserved variables called factors. 2. Correlation: correlation is a statistical method which tells the relation between the two variables

3. Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO):

We do KMO test for checking the adequacy of data. Sampling adequacy predicts if data are likely to factor well, based on correlation and partial correlation. It is used to assess which variables to drop from the model because they are too multi collinear. A KMO index <= 0.5 indicates the correlation matrix is not suitable for factor analysis. RESULTS

Factor Analysis
KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig.

.398 619.153 351 .000

Communalities Initial Q1 Easy to find parking facility easy to identify convenient pack size no hidden cost convenient working hrs attractive goods arrangement external appearance personal attention by staff brands availability store offers own credit card door delivery convenient space easy to reach attentiveness of staff brand at various price range store has a cafeteria efficient delivery efficient billing system modern interior decoration politeness of staff variety of brands acceptance of credit & debit cards interiors of the store handling customer complaints store has own brands of products 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .699 .683 .633 .649 .664 .827 .828 .680 .733 .694 .576 .808 .696 .606 .685 .805 .707 .798 .761 .696 .757 .716 .623 .802 .697 .790 .819

Extraction Method: Principal Component Analysis.

Total Variance Explained Initial Eigen values Component 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Total 7.417 3.064 2.223 2.044 1.942 1.501 1.240 .971 .897 .877 .711 .677 .559 .529 .414 .390 .334 .303 .234 .192 .142 .110 .084 .078 .036 .018 % of Variance 27.472 11.349 8.232 7.572 7.192 5.560 4.593 3.595 3.323 3.247 2.634 2.508 2.072 1.959 1.535 1.446 1.236 1.122 .867 .711 .527 .407 .311 .290 .132 .067 Cumulative % 27.472 38.821 47.053 54.625 61.817 67.377 71.970 75.565 78.889 82.136 84.770 87.278 89.350 91.309 92.845 94.290 95.527 96.648 97.515 98.227 98.754 99.161 99.472 99.762 99.894 99.962 100.000 Extraction Sums of Squared Loadings Total 7.417 3.064 2.223 2.044 1.942 1.501 1.240 % of Variance 27.472 11.349 8.232 7.572 7.192 5.560 4.593 Cumulative % 27.472 38.821 47.053 54.625 61.817 67.377 71.970

.010 .038 Extraction Method: Principal Component Analysis.

Component Matrix (a) Component Q1 Easy to find parking facility easy to identify convenient pack size no hidden cost convenient working hrs attractive goods arrangement external appearance personal attention by staff brands availability store offers own credit card door delivery convenient space easy to reach attentiveness of staff brand at various price range store has a cafeteria efficient delivery efficient billing system modern interior decoration politeness of staff variety of brands acceptance of credit & debit cards interiors of the store handling customer complaints store has own brands of products 1 -.183 .539 .405 .456 .624 .509 .675 .551 .659 .344 .497 .526 .441 .631 .616 .508 .387 .230 .522 .312 .689 .625 .635 .446 .778 .599 -.054 2 .637 -.155 -.153 .353 -.379 -.298 .231 .292 .412 -.229 .041 -.286 -.575 .360 -.189 -.352 -.120 -.185 -.523 .059 .378 .088 .255 .600 -.014 .118 .523 3 .331 -.533 .409 -.106 -.291 -.141 -.267 .318 -.110 .391 .382 .271 .312 -.023 -.382 -.058 -.235 .627 .237 .334 .143 -.179 .067 -.114 -.002 -.015 .234 4 .224 .172 .396 .268 -.127 .007 .078 .330 .121 .341 -.122 -.497 .062 -.003 -.255 .156 .627 -.314 -.023 .320 -.023 -.118 -.005 -.182 -.099 -.574 -.371 5 -.096 -.141 -.098 .473 .092 -.389 -.458 .000 -.203 .355 .188 .200 -.168 .230 .151 .149 .242 .277 -.144 -.363 -.261 .495 -.119 .414 -.229 -.229 -.220 6 -.224 -.087 .075 -.059 -.071 .095 -.075 -.277 -.146 .356 -.158 -.260 -.043 -.152 .176 .611 -.062 -.076 -.283 .456 .081 .159 -.041 .144 -.130 .118 .534 7 .200 -.163 -.327 .083 .130 .546 -.163 .067 -.199 -.016 .324 .146 .198 .041 -.066 .012 -.181 -.369 -.238 .202 -.211 .039 .366 .059 -.112 -.149 -.130

Extraction Method: Principal Component Analysis. a 7 components extracted.

Correlations
Correlations attractive goods arrangement .061 .688 46 1 . 46

Easy to find

Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N

Easy to find 1 . 48 .061 .688 46

attractive goods arrangement

The correlation between the Easy to find the Products and Attractive goods arrangement is +68.8%. Correlations
Correlations store offers own credit card 1 . 47 .181 .239 44 acceptance of credit & debit cards .181 .239 44 1 . 45

store offers own credit card acceptance of credit & debit cards

Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N

The correlation between the Store offers own credit card and the Acceptance of credit and debit cards by the Retail store is +23.9%.

Correlations personal attention by staff personal attention by staff handling customer complaints Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N 1 . 48 .255 .080 48 handling customer complaints .255 .080 48 1 . 48

The correlation between the Personal attention by staff and the Handling customer complaints is +25.5%.

Frequency Table
Q1 Cumulative Percent 81.3 100.0

Valid

YES NO Total

Frequency 39 9 48

Percent 81.3 18.8 100.0

Valid Percent 81.3 18.8 100.0

The study is showing that 81.3% of the respondent are visiting Super Market or Hyper Market Regularly.

Q2 Cumulative Percent 2.1 25.0 27.1 66.7 68.8 85.4 87.5 89.6 91.7 93.8 100.0

Valid

Allen Soll Big Bazaar Coupons Fresh Hyd.Centr al More Pantaloon s Reliance Fr Shoppers S Shoppers S Spencers Total

Frequency 1 11 1 19 1 8 1 1 1 1 3 48

Percent 2.1 22.9 2.1 39.6 2.1 16.7 2.1 2.1 2.1 2.1 6.3 100.0

Valid Percent 2.1 22.9 2.1 39.6 2.1 16.7 2.1 2.1 2.1 2.1 6.3 100.0

We can say from the study that 39.6% people are shopping at Fresh@ Heritage and 22.9% people are shopping at Big Bazaar.

Easy to find Cumulative Percent 2.1 10.4 31.3 68.8 87.5 100.0

Frequency Valid Strongly disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total 1 4 10 18 9 6

Percent 2.1 8.3 20.8 37.5 18.8 12.5

Valid Percent 2.1 8.3 20.8 37.5 18.8 12.5

48 100.0 100.0 The products are easy to find in their respective shopping company is 89.6%.

Parking facility Cumulative Percent 4.3 17.0 40.4 74.5 93.6 100.0

Valid

disagree slightly disagree Neutral slightly agree agree strongly agree Total

Frequency 2 6 11 16 9 3 47 1 48

Percent 4.2 12.5 22.9 33.3 18.8 6.3 97.9 2.1 100.0

Valid Percent 4.3 12.8 23.4 34.0 19.1 6.4 100.0

Missing Total

System

83.3% Customers are satisfied with the facility provided by the company.

Easy to identify Cumulative Percent 6.4 14.9 42.6 61.7 85.1 100.0

Valid

Disagree slightly Disagree neutral slightly agree agree strongly agree Total

Frequency 3 4 13 9 11 7 47 1 48

Percent 6.3 8.3 27.1 18.8 22.9 14.6 97.9 2.1 100.0

Valid Percent 6.4 8.5 27.7 19.1 23.4 14.9 100.0

Missing Total

System

85.1% of customers are satisfied with the practices that are all followed by the store for Easy to find the Products.

Convenient pack size Cumulative Percent 4.2 10.4 31.3 66.7 95.8 100.0

Valid

disagree slightly disagree neutral slightly agree Agree strongly agree Total

Frequency 2 3 10 17 14 2 48

Percent 4.2 6.3 20.8 35.4 29.2 4.2 100.0

Valid Percent 4.2 6.3 20.8 35.4 29.2 4.2 100.0

89.5% visitors are showing satisfaction about the convenient pack size that are all offered by the retail store which they are shopping.

No hidden cost Cumulative Percent 19.6 39.1 65.2 97.8 100.0

Frequency Valid slightly disagree neutral slightly disagree agree Strongly agree Total System 9 9 12 15 1 46 2 48

Percent 18.8 18.8 25.0 31.3 2.1 95.8 4.2 100.0

Valid Percent 19.6 19.6 26.1 32.6 2.2 100.0

Missing Total

62.4% customers are feeling that they are not incurring any hidden cost and they are feeling this is the important criteria to select the retail shop.

Convenient working hrs Cumulative Percent 2.1 12.5 20.8 54.2 87.5 100.0

Frequency Valid disagree slightly disagree neutral slightly agree Agree Strongly agree Total 1 5 4 16 16 6 48

Percent 2.1 10.4 8.3 33.3 33.3 12.5 100.0

Valid Percent 2.1 10.4 8.3 33.3 33.3 12.5 100.0

87.5% customers are satisfied with the present working hours of the retail stores. So there is no need to extend the working hours of the retail stores.

Attractive goods arrangement Cumulative Percent 2.2 8.7 21.7 58.7 78.3 100.0

Frequency Valid Strongly disagree slightly disagree Neutral slightly agree Agree Strongly agree Total System 1 3 6 17 9 10 46 2 48

Percent 2.1 6.3 12.5 35.4 18.8 20.8 95.8 4.2 100.0

Valid Percent 2.2 6.5 13.0 37.0 19.6 21.7 100.0

Missing Total

91.6% customers of big bazaar, fresh@ and remaining shops that we conducted studies feeling that the way the shop arranging the products is attractive.

External appearance Cumulative Percent 4.3 19.6 34.8 69.6 87.0 100.0

Valid

disagree Slightly disagree neutral Strongly agree agree Strongly agree Total System

Frequency 2 7 7 16 8 6 46 2 48

Percent 4.2 14.6 14.6 33.3 16.7 12.5 95.8 4.2 100.0

Valid Percent 4.3 15.2 15.2 34.8 17.4 13.0 100.0

Missing Total

81.2% customers are giving positive opinion about the external appearance of research conducted shops.

Personal attention by staff Cumulative Percent 6.3 31.3 56.3 81.3 91.7 100.0

Frequency Valid disagree Slightly disagree neutral slightly agree Agree Strongly agree Total 3 12 12 12 5 4 48

Percent 6.3 25.0 25.0 25.0 10.4 8.3 100.0

Valid Percent 6.3 25.0 25.0 25.0 10.4 8.3 100.0

56.3% customers are feeling that they are not getting personal attention by the staff. Brands availability Cumulative Percent 6.4 17.0 44.7 80.9 100.0

Valid

disagree Slightly disagree neutral slightly agree agree Total System

Frequency 3 5 13 17 9 47 1 48

Percent 6.3 10.4 27.1 35.4 18.8 97.9 2.1 100.0

Valid Percent 6.4 10.6 27.7 36.2 19.1 100.0

Missing Total

Store offers own credit card Cumulative Percent 4.3 17.0 36.2 68.1 87.2 93.6 100.0

Frequency Valid Strongly disagree disagree slightly disagree neutral slightly agree agree strongly agree Missing Total Total System 2 6 9 15 9 3 3 47 1 48

Percent 4.2 12.5 18.8 31.3 18.8 6.3 6.3 97.9 2.1 100.0

Valid Percent 4.3 12.8 19.1 31.9 19.1 6.4 6.4 100.0

Door delivery Cumulative Percent 2.1 12.5 37.5 52.1 81.3 91.7 100.0

Frequency Valid Strongly disagree disagree slightly disagree Neutral Slightly agree Agree Strongly agree Total 1 5 12 7 14 5 4 48

Percent 2.1 10.4 25.0 14.6 29.2 10.4 8.3 100.0

Valid Percent 2.1 10.4 25.0 14.6 29.2 10.4 8.3 100.0

Door delivery practices followed by the store is not more than 50%.

Convenient space Cumulative Percent 2.1 14.6 18.8 43.8 77.1 100.0

Valid

Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total

Frequency 1 6 2 12 16 11 48

Percent 2.1 12.5 4.2 25.0 33.3 22.9 100.0

Valid Percent 2.1 12.5 4.2 25.0 33.3 22.9 100.0

People are satisfied by the space and easy to reach.

Easy to reach Cumulative Percent 2.1 6.3 12.5 25.0 56.3 79.2 100.0

Frequency Valid Strongly disagree Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total 1 2 3 6 15 11 10 48

Percent 2.1 4.2 6.3 12.5 31.3 22.9 20.8 100.0

Valid Percent 2.1 4.2 6.3 12.5 31.3 22.9 20.8 100.0

Attentiveness of staff Cumulative Percent 10.6 23.4 46.8 78.7 95.7 100.0

Valid

Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total System

Frequency 5 6 11 15 8 2 47 1 48

Percent 10.4 12.5 22.9 31.3 16.7 4.2 97.9 2.1 100.0

Valid Percent 10.6 12.8 23.4 31.9 17.0 4.3 100.0

Missing Total

brand at various price range Cumulative Percent 8.3 16.7 37.5 70.8 93.8 97.9 100.0

Valid

Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree 74.00 Total

Frequency 4 4 10 16 11 2 1 48

Percent 8.3 8.3 20.8 33.3 22.9 4.2 2.1 100.0

Valid Percent 8.3 8.3 20.8 33.3 22.9 4.2 2.1 100.0

Store has a cafeteria Cumulative Percent 12.5 22.9 41.7 52.1 83.3 95.8 100.0

Frequency Valid Strongly disagree Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total 6 5 9 5 15 6 2 48

Percent 12.5 10.4 18.8 10.4 31.3 12.5 4.2 100.0

Valid Percent 12.5 10.4 18.8 10.4 31.3 12.5 4.2 100.0

Efficient delivery Cumulative Percent 2.1 14.6 25.0 56.3 77.1 97.9 100.0

Frequency Valid Strongly disagree Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total 1 6 5 15 10 10 1 48

Percent 2.1 12.5 10.4 31.3 20.8 20.8 2.1 100.0

Valid Percent 2.1 12.5 10.4 31.3 20.8 20.8 2.1 100.0

Efficient billing system Cumulative Percent 2.1 4.2 14.6 31.3 52.1 77.1 100.0

Frequency Valid Strongly disagree Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total 1 1 5 8 10 12 11 48

Percent 2.1 2.1 10.4 16.7 20.8 25.0 22.9 100.0

Valid Percent 2.1 2.1 10.4 16.7 20.8 25.0 22.9 100.0

Mostly all the research conducted stores are having efficient billing systems. even though the people are finding more crowded at the billing systems.

Modern interior decoration Cumulative Percent 4.2 6.3 20.8 56.3 83.3 100.0

Valid

Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total

Frequency 2 1 7 17 13 8 48

Percent 4.2 2.1 14.6 35.4 27.1 16.7 100.0

Valid Percent 4.2 2.1 14.6 35.4 27.1 16.7 100.0

All the shops that we conducted research are modernized

Politeness of staff Cumulative Percent 2.1 4.2 12.5 43.8 60.4 93.8 100.0

Frequency Valid Strongly disagree Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total 1 1 4 15 8 16 3 48

Percent 2.1 2.1 8.3 31.3 16.7 33.3 6.3 100.0

Valid Percent 2.1 2.1 8.3 31.3 16.7 33.3 6.3 100.0

Variety of brands Cumulative Percent 6.4 10.6 23.4 68.1 87.2 100.0

Valid

Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total

Frequency 3 2 6 21 9 6 47 1 48

Percent 6.3 4.2 12.5 43.8 18.8 12.5 97.9 2.1 100.0

Valid Percent 6.4 4.3 12.8 44.7 19.1 12.8 100.0

Missing Total

System

Acceptance of credit & debit cards Cumulative Percent 11.1 24.4 48.9 68.9 100.0

Frequency Valid Slightly disagree Neutral Slightly agree Agree Strongly agree Total Missing Total System 5 6 11 9 14 45 3 48

Percent 10.4 12.5 22.9 18.8 29.2 93.8 6.3 100.0

Valid Percent 11.1 13.3 24.4 20.0 31.1 100.0

Interiors of the store Cumulative Percent 4.2 12.5 29.2 72.9 89.6 100.0

Valid

Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total

Frequency 2 4 8 21 8 5 48

Percent 4.2 8.3 16.7 43.8 16.7 10.4 100.0

Valid Percent 4.2 8.3 16.7 43.8 16.7 10.4 100.0

Handling customer complaints Cumulative Percent 2.1 6.3 14.6 45.8 83.3 97.9 100.0

Frequency Valid Strongly disagree Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total 1 2 4 15 18 7 1 48

Percent 2.1 4.2 8.3 31.3 37.5 14.6 2.1 100.0

Valid Percent 2.1 4.2 8.3 31.3 37.5 14.6 2.1 100.0

Store has own brands of products Cumulative Percent 6.3 10.4 20.8 37.5 68.8 85.4 100.0

Frequency Valid Strongly disagree Disagree Slightly disagree Neutral Slightly agree Agree Strongly agree Total 3 2 5 8 15 8 7 48

Percent 6.3 4.2 10.4 16.7 31.3 16.7 14.6 100.0

Valid Percent 6.3 4.2 10.4 16.7 31.3 16.7 14.6 100.0

Heritage fresh, more and big bazaar are having their own products in the stores.

.
The questionnaire is made of 26 questions and it is designed to know the perceptions of Indian consumers on the service quality offered by supermarkets and hypermarkets. The questionnaire is to measure seven components they are customer satisfaction, efficiency of door delivery, arrangement of products in the store, availability of various brands, employees behavior towards customers, convenient working hours and attractiveness of the store. The sample size is 50.
FINDINGS:

Physical appearance of the store is attracting the customers Door delivery is not efficient regarding time Customers find easy to find the products at store. Working hours are convenient for the customers to shop. Their own brands are much available than market brands at stores. Customers are satisfied with the employees behavior. Customers are happy with the credit card system. y Over all the customers are satisfied and interested in buying at supermarkets. y y y y y y y

Conclusion:
y The change in the trends is making the people to show more interest in shopping at hypermarkets. y Many customers are attracted because of the ambience at hyper markets. y They are not able to attract the middle class people. y People feel convenient to shop with credit and debit cards.