big bazaae vs national handloom
TRANSCRIPT
Executive Summary
The topic is Comparative Study Service Quality of Big Bazaar and National handloom.
We know that there are several retail shops but Big Bazaar and National Handloom is
extensively used by people in Jaipur. National handloom is a traditional store and big
bazaar is new trend retail store.
We know that people are attracted towards the good services. It is sometimes said that
success is the result of a good plan well executed. For a retailer, plans are mostly
formulated at corporate headquarter and executed in their stores. Corporate planning
functions include choosing the assortment of products to carry in each store at each
point in time, setting store inventory levels and product prices, setting staffing levels,
determining how many stores to have and where they are located and creating the
physical design of stores and plan grams that specify the location of all products within
each store. Services provided by the retail store shows the what type of retail store it is.
Services quality helps the customer to analyse the store.
INTODUCTION
Services quality is a critical element of customer perception .Sevices researcher have
suggested that consumers judge of quality of services is based on their perception of
the technical outcome.
Service may be defined as intangible activities performed by persons or machine or
both for the purpose of creating values perceptions amongs customers. And quality is
considered to be one of the management’s top most competitive priorities and
prerequisite for sustenance and growth of firm. Customer perceives the quality of the
services in two dimensions what they get and how they get it. Service quality help in
fulfillment of customer expectation .
This paper helps to investigates how closely customer expectation are matched.
Customer do not perceive the quality on one dimension way but rather judge quality on
the multiple factors relevant to the context. The five dimension of the service quality are-
reliability, responsiveness, assurance, empathy, tangible. These dimension represent
how the consumers organize information about service quality in their minds. These
dimension are refer to the retail and business.
Brief history of Big Bazaar:-
Big Bazaar has already plotted its own identity in the world retail. Big Bazzar is retail
chain of hypermarket in india that reaches to the customers with every needs at a
reasonable prices. This retail store is the subsidiary of the Future group. There are 121
stores of Big Bazaar in India. This shopping store mainly attracts middle class and
lower-middle class with the discounted pricing and lucrative offers at different products.
In the year 2002, Big Bazaar introduces Food Bazaar as a Shop-In-Shop pattern.
Brief history of National handloom:-
National handloom is a unit of Rational handloom co.pvt. Ltd. National handloom co. is
providing quality services to customers since 1979. Its branches are in Jodhpur, Jaipur,
Barmer, & Ahemdabad. It provide the facility of home delivery and online shopping.
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In this project we have to campare the service quality of the Big Bazaar and National
handloom. Both are the retail store but they have different marketing strategy. They
adopt different services for the customer to attract their retail store.
The word "Retail" originates from a French-Italian word. Retailer is someone who cuts
off or sheds a small piece from something. Retailing is the set of activities that markets
products or services to final consumers for their own personal or household use. It does
this by organizing their availability on a relatively large scale and supplying them to
customers on a relatively small scale. Retailer is a Person or Agent or Agency or
Company or Organization who is instrumental in reaching the Goods or Merchandise or
Services to the End User or Ultimate Consumer.
Indian retail industry is the largest industry in India, contributing to over 13% of the
country's GDP. Organized retail industry in India is expected to rise 35% yearly being
driven by strong income growth, changing lifestyles, and favorable demographic
patterns. It is expected that by 2011-12 modern retail industry in India will be worth US$
590 billion. It has further been predicted that the retailing industry in India will amount to
US$ 833 billion by 2013 and US$ 1.3 trillion by 2018. Shopping in India has witnessed a
revolution with the change in the consumer buying behavior and the whole format of
shopping also altering. Industry of retail in India which has become modern can be seen
from the fact that there are huge shopping centers, malls and sprawling complexes
which offer food, shopping, and entertainment all under the same roof. Indian retail
industry is expanding itself most aggressively; as a result a great demand for real estate
is being created. Indian retailers preferred means of expansion is to expand to other
regions and to increase the number of their outlets in a city.
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RETAIL INDUSTRY IN INDIA
The Indian retail industry is divided into organised and unorganised sectors. Organised
retailing refers to trading activities undertaken by licensed retailers, that is, those who
are registered for sales tax, income tax, etc. These include the corporate- markets and
retail chains, and also the privately owned large retail businesses.
Unorganized retailing, on the other hand, refers to the traditional formats of low-cost
retailing, for example, the local kirana shops, owner manned general stores, paa/beedi
shops, convenience stores, hand cart and pavement vendors, etc. India’s retail sector is
wearing new clothes and with a three-year compounded annual growth rate of 46.64 per
cent, retail is the fastest growing sector in the Indian economy.
Retailing is the most active and attractive sector of last decade. While the retailing
industry itself has been present since ages in our country, it is only the recent past that
it has witnessed so much dynamism. Indian retailing today is at an interesting
crossroads. The retail sales are at the highest point in history and new technologies are
improving retail productivity there are many opportunities to start a new retail business.
There are just over a 6 million retail outlets operating across the Indian cities from north
to south and from east to west. This large number of outlets, many of which are trying to
serve and satisfy the same market segments, results in fierce competition and better
values for shoppers.
The retail mix is the combination of factors retail used to satisfied customer
needs and influences their purchase decision. It’s include the type of merchandise and
services offered, merchandise pricing, advertising, promotional programs store design
merchandise display, assistance to customer provided by salespeople, and
convenience of the store’s location.
Biggest challenge for organized retailing is to create a “customer-pull” environment that
increases the amount of impulse shopping. Research shows that the chances of senses
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dictating sales are up to 10-15%. Due to which there is emergence of discount stores
which is expected to spearhead the organized retailing revolution.
An overview on Retail Revolution in India
Retail in India is on a cusp of transformation. Organized retailing as a professional
service-oriented set-up, is a recent phenomenon in India but is growing at a tremendous
pace with a potential of creating over 2 million new (direct) jobs within the next six
years, assuming an 8 to 10 per cent share of organized retailing in the total retail
business.
The fast changing retail environment demands that professionals learn new skills,
improve their efficiency, learn to compete and think out of the box. As retailers work
directly with customers and there is need for good managerial talent to interpret and
satisfy the needs and desires of customers. All this requires an education that is
intensive, comprehensive and closely linked to the retail business world. The need is to
have a program which has all the inherent features of a business management program
and includes experiential learning throughout the program.
Market Trends, Challenges & Opportunities
1. Across BRIC countries, the food and grocery (F&G) segment is clearly driving
retail growth. For eg, retail food sales dominate the total retail market in Brazil,
accounting for almost 54 percent of the total retail sales, while Russia is the
fastest growing retail food sales market in the world, with the potential to again
double in size by 2008.
2. The prevalence of English as a language of communication to a very great
extent facilitates material sourcing and business communication. While India and
Russia pose no problems in this regard, Brazil and China present communication
problems for foreign companies.
3. The importance of governments that are quick on decision-making and passing
liberal trade laws cannot be emphasized enough. In China, for instance, being a
non-democratic country makes it easier for foreign investors to do business sans
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bureaucratic red-tapism (in comparison to a democratic country like India), the
obvious reason being that the political establishment is not directly accountable
to the people.
4. Growing urbanization and metropolitan saturation is leading to the expansion of
retail formats and investment opportunities towards tier-II cities and rural hubs
across all four countries.
5. Continued economic reforms together with the growth of organised retail
(especially in the F&G segment) have led to growing rural incomes, triggering off far-
reaching, social impacts. The upcoming ‘Golden Quadrilateral' plan for roadways in
India, which is to connect the four cities of Delhi, Kolkata, Mumbai and Chennai, will
have massive economic and social repercussions on rural and semi-rural clusters
along the vast network. In China too, the government plans to create a rural retail
network covering 70 percent of all villages by 2008.
Retail and India
Do you or your retail clients ever wonder why customers leave retail stores empty handed? It
may have something to do with the design of the space and location of the merchandise. If we
consider how people shop, it may tell us something about how retail environments need to be
designed to maximize customer purchasing. One individual concerned with understanding what
motivates consumers to purchase in the marketplace is Paco Underhill. Underhill (1999) in his
book, Why We Buy: The Science of Shopping, makes several recommendations that have
relevance to designers interested in planning and executing effective retail environments. Our
goal is to share five of his recommendations that we believe are particularly important for
designers to consider.
India's imminent urbanization process has implications for demand for housing, urban
infrastructure, location of retail, and demand for consumer durables.
The on-stream infrastructure development will drive growth in the transportation sector,
spur demand for vehicles, increase real estate values along the “Golden Quadrilateral”
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corridor, and potentially boost construction of suburban homes as people escape
congested cities. Plus, it will open up thousands of villages en route to a global
audience and effectively integrate them with the growing Indian economy.
• Growth of the Retail market, to a great extent, is the dependent on the size of the
country's consuming class and the rate of growth of GDP, especially disposable
incomes.
• India is the world's second most populous country and its GDP growth is likely to
surpass that of China by 2015.
• It is estimated that India's GDP will surpass that of the US before 2050, to make it the
world's second largest economy.
• Reflecting on the robust growth in India's GDP, consumer expenditure (in current
prices) grew at a relatively high pace of nearly 10 percent per annum over the past two
years.
• India's advantage lies in the fact that it has the largest young population in the world –
over 890 million Indians are below 45 years of age. The median age for India is 25
years as compared to 28 years for Brazil, 33 years for China and 38 years for Russia.
• There are more English speaking people in India than on the European continent.
• The retailing industry in India, estimated at USD 270 Billion in 2006, is expected to
double to USD 440 Billion by 2010.
Traditional markets are making way for new formats such as departmental stores,
hypermarkets, supermarkets and specialty stores. Western-style malls have begun
appearing in metros and second-rung cities alike, introducing the Indian consumer to an
unparalleled shopping experience.
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The Indian retail sector is highly fragmented with 97 per cent of its business being run
by the unorganized retailers like the traditional family run stores and corner stores. The
organized retail however is at a very nascent stage though attempts are being made to
increase its proportion to 9-10 per cent by the year 2010 bringing in a huge opportunity
for prospective new players. The sector is the largest source of employment after
agriculture, and has deep penetration into rural India generating more than 10 per cent
of India’s GDP. Current Status :
India’s retail industry accounts for 10 percent of its GDP and 8 percent of the
employment to reach $17 billion by 2010.The Indian retail market are estimated at US$
350 billion. But organized retail is estimated at only US$ 8 billion. However, the
opportunity is huge-by 2010, organized retail is expected to grow at 6 per cent by 2010
and touch a retail business of $ 17 billion as against its current growth level of 3 per
cent which at present is estimated to be $ 6billion, according to the Study undertaken by
The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Indian retailing is clearly at a tipping point. India is currently the ninth largest retail
market in the world. And it is names of small towns like Dehradun, Vijayawada,
Lucknow and Nasik that will power India up the rankings soon. Organized retail in India
has the potential to add over Rs. 2,000 billion (US$45 billion) business by the Year 2010
generating employment for some 2.5 million people in various retail operations and over
10 million additional workforces in retail support activities including contract production
& processing, supply chain & logistics, retail real estate development & management
etc.
It is estimated that it will cross the $650-billion mark by 2011, with an already estimated
investment of around $421 billion slated for the next four years.
As noticed in the figure above, the Organized Retail Penetration (ORP) is the highest in
footwear with 22 per cent followed by clothing. Though food and grocery account for
largest share of retail spend by the consumer at about 76 per cent, only 1 per cent of
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this market is in the organized sector. However, it has been estimated that this segment
would multiply five times taking the share of the organized market to 30 percent in the
coming years.
Operation Support Systems
• ERP System Various ERP vendors have developed retail-specific systems which help
in integrating all the functions from warehousing to distribution, front and back office
store systems and merchandising. An integrated supply chain helps the retailer in
maintaining his stocks, getting his supplies on time, preventing stock-outs and thus
reducing his costs, while servicing the customer better.
• CRM Systems
The rise of loyalty programs, mail order and the Internet has provided retailers with
real access to consumer data. Data warehousing & mining technologies offers retailers
the tools they need to make sense of their consumer data and apply it to business.
This, along with the various available CRM (Customer Relationship Management)
Systems, allows the retailers to study the purchase behavior of consumers in detail
and grow the value of individual consumers to their businesses.
• Advanced Planning and Scheduling Systems
APS systems can provide improved control across the supply chain, all the way from
raw material suppliers right through to the retail shelf. These APS packages
complement existing (but often limited) ERP packages. They enable consolidation of
activities such as long term budgeting, monthly forecasting, weekly factory scheduling
and daily distribution scheduling into one overall planning process using a single set of
data. Leading manufactures, distributors and retailers and considering APS packages
such
as those from i2, Manugistics, Bann, MerciaLincs and Stirling-Douglas.
Strategic Decision Support Systems
• Store Site Location
Demographics and buying patterns of residents of an area can be used to compare
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various possible sites for opening new stores. Today, software packages are helping
retailers not only in their locational decisions but in decisions regarding store sizing
and floor-spaces as well.
• Visual Merchandising
The decision on how to place & stack items in a store is no more taken on the gut feel
of the store manager. A larger number of visual merchandising tools are available to
him to evaluate the impact of his stacking options. The SPACEMAN Store Suit from AC
Neilsen and Moda CAD are example of products helping in modeling a retail store
design.
Segment analysis :
The structure of Indian retail is developing rapidly with shopping malls becoming
increasingly common in the large cities and development plans being projected at 150
new shopping malls by 2010. However, the traditional formats like hawkers, grocers and
Tobacconist shops continue to co-exist with the modern formats of retailing. Modern
retailing has helped the companies to increase the consumption of their products for
example: Indian consumers would normally consume the rice sold at the nearby kiranas
viz. Kolam for daily use. With the introduction of organized retail, it has been noticed
that the sale of Basmati rice has gone up by four times than it was a few years back; as
a superior quality rice (Basmati) is now available at almost the same price as the normal
rice at a local kirana.
Thus, the way a product is displayed and promoted influences its sales. If the
consumption continues to grow this way it can be said that the local market would go
through a metamorphoses of a change and the local stores would soon become the
things of the past or restricted to last minute unplanned buying.
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Food and grocery retail
The food business in India is largely unorganized adding up to barely Rs.400 billion,
with other large players adding another 50 per cent to that. The All India food
consumption is close to Rs.9,000 billion, with the total urban consumption being around
Rs.3,300 billion.
This means that aggregate revenues of large food players is currently only 5 per cent of
the total Indian market, and around 15-20 per cent of total urban food consumption.
Most food is sold in the local ‘wet’ market, vendors, roadside push cart sellers or tiny
kirana stores. According to McKinsey report, the share of an Indian household's
spending on food is one of the highest in the world, with 48 per cent of income being
spent on food and beverages.
Apparel retail :
The ready-mades and western outfits are growing at 40-45 per cent annually, as the
market teams up with international brands and new entrants entering this segment
creating an Rs.5 billion market for the premium grooming segment. The past few years
has seen the sector aligning itself with global trends with retailing companies like
Shoppers’ stop and Crossroads entering the fray to entice the middle class. However, it
is estimated that this segment would grow to Rs. 3 billion in the next three years.
Gems and Jewellery retail :
The gems and jewellery market is the key emerging area, accounting for a high
proportion of retail spends. India is the largest consumer of gold in the world with an
estimated annual consumption of 1000 tonnes, considering actual imports and recycled
gold. The market for jewellery is estimated as upwards of Rs. 650 billion.
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Pharmaceutical retail :
The pharma retailing is estimated at about Rs. 300 billion, with 15 per cent of the 51
lakh retail stores in India being chemists. Pharma retailing will follow the trend of
becoming more organized and corporatized as is seen in other retailing formats (food,
apparel etc).
A few corporate who have already forayed into this segment include Dr Morepen (with
Life spring and soon to be launched Tango),Medicine Shoppe, Apollo pharmacies,
98.4from Global Health line Pvt. Ltd., and the recently launched CRS Health from SAK
Industries. In the south, RPG group’s Health & Glow is already in this category, though
it is not a pure play pharma retailer but more in the health and beauty care business.
Music Retail :
The size of the Indian music industry, as per this Images-KSA Study, is estimated at
Rs.11 billion of which about 36 percent is consumed by the pirated market and
organized music retailing constitutes about 14 percent, equivalent to Rs.1.5 billion.
Book retail :
The book industry is estimated at over Rs. 30 billion out of which organized retail
accounts for only 7 per cent (at Rs.2.10 billion). This segment is seen to be emerging
with text and curriculum books accounting to about 50 per cent of the total sales. The
gifting habit in India is catching on fast with books enjoying a significant share, thus
expecting this sector to grow by 15 per cent annually.
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Consumer durables retail :
The consumer durables market can be stratified into consumer electronics comprising
of TV sets, audio systems, VCD players and others; and appliances like washing
machines, microwave ovens, air conditioners (A/Cs). The existing size of this sector
stands at an estimated US$ 4.5 Billion with organized retailing being at 5 per cent.
Retailing Formats :
Modern retailing has entered India in form of sprawling malls and huge complexes
offering shopping, entertainment, leisure to the consumer as the retailers experiment
with a variety of formats, from discount stores to supermarkets to hypermarkets to
specialty chains.
Corporate Catalyst India A report on Indian Retail Industry However, kiranas still
continue to score over modern formats primarily due to the convenience factor. The
organized segment typically comprises of a large number of retailers, greater
enforcement of taxation mechanisms and better labour law monitoring system. It's no
longer about just stocking and selling but about efficient supply chain management,
developing vendor relationship quality customer service, efficient merchandising and
timely promotional campaigns. The modern retail formats are encouraging development
of well-established and efficient supply chains in each segment ensuring efficient
movement of goods from farms to kitchens, which will result in huge savings for the
farmers as well as for the nation.
The Government also stands to gain through more efficient collection of tax revenues.
Along with the modern retail formats, the non-store retailing channels are also
witnessing action with HLL initiating Sangam Direct, a direct to home service. Network
marketing has been growing quite fast and has a few large players today. Gas stations
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are seeing action in the form of convenience stores, ATMs, food courts and pharmacies
appearing in many outlets.
In the coming years it can be said that the hypermarket route will emerge as the most
preferred format for international retailers stepping into the country.
At present, there are 50 hypermarkets operated by four to five large retailers spread
across 67 cities catering to a population of half-a-million or more. Estimates indicate that
this sector will have the potential to absorb many more hypermarkets in the next four to
five years. Corporate Catalyst India A report on Indian Retail Industry List of retailers
that have come with new formats Retailer Current Format New Formats, Experimenting
with Shopper’s Stop Department Store Quasi-mall Ebony Department Store Quasi-mall,
smaller outlets, adding food retail Crossword Large bookstore Corner shops Pyramids
Department Store Quasi-mall, food retail Pantaloon Own brand store Hypermarket
Subhiksha Supermarket Considering moving to self-service Vitan Supermarket
Suburban discount store Food world Food supermarket Hypermarket, Food world
express Globus Department Store Small fashion stores Bombay Bazaar Aggregation of
Kiranas food mart Aggregation of KiranasMetro Cash and Carry S Kumar’s Discount
Store Traditionally, the small store (kirana) retailing has been one of the easiest ways to
generate self-employment, as it requires minimum investments in terms of land, labour
and capital.
These stores are not affected by the modern retailing as it is still considered very
convenient to shop. In order to keep pace with the modern formats, kiranas have now
started providing more value-added services like stocking ready to cook vegetables and
other fresh produce. They also provide services like credit, phone service, home
delivery etc.
The organized retailing has helped in promoting several niche categories such as
packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory products
and convenience and health foods, which are generally not found in the local kirana
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stores. Looking at the vast opportunity in this sector, big players like Reliance and K
Rahejas has announced its plans to become the country's largest modern retainers by
establishing a chain of stores across all major cities.
4. OPPORTUNITIES AND CHALLENGES :
4.1 Investment Opportunities in the Retail Sector
AT Kearney’s study on global retailing trends found that India is the least competitive as
well as least saturated of all major global markets. This implies that there are
significantly low entry barriers for players trying to setup base in India, in terms of the
competitive landscape. The report further stated that global retailers such as Wal mart,
Carrefour, Tesco and Casino would take advantage of the more favourable FDI rules
that are likelyin India and enter the country through partnerships with local retailers.
Other retailerssuch as Marks & Spencer and the Benetton Group, who operate through
a franchisee model, would most likely switch to a hybrid ownership structure.
A good talent pool, unlimited opportunities, huge markets and availability of quality raw
materials at cheaper costs is expected to make India overtake the world's best retail
economies by 2042, according to industry players. The retail industry in India, according
to experts, will be a major employment generator in the future. Currently, the market
share of organized modern retail is just over 4 percent of the total retail industry, thereby
leaving a huge untapped opportunity.
The sector is expected to see an investment of over $30 billion within the next 4-5
years, catapulting modern retail in the country to $175-200 billion by 2016, according to
Technopak estimates. The Potential of the Indian Retail Sector the high growth
projected in domestic retail demand will be fuelled by:
The migration of population to higher income segments with increasing per captaincies
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An increase in urbanization
Changing consumer attitudes especially the increasing use of credit cards
The growth of the population in the 20 to 49 years age band. There is retail
opportunity in most product categories and for all types of formats
Food and Grocery: The largest category; largely unorganized today
Home Improvement and Consumer Durables: Over 20 per cent p.a. CAGR
estimated in the next 10 years
Apparel and Eating Out: 13 per cent p.a. CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure: Cold chain and
logistics India also has significant potential to emerge as a sourcing base for a
wide variety of goods for international retail companies
Many international retailers including Wal-Mart, GAP, JC Penney etc. are already
procuring from India. Corporate Catalyst India A report on Indian Retail Industry
Of the total organized retail market of Rs 550 billion, the business of fashion
accounts for Rs 300.80 billion, which translates into nearly 55 per cent of the
organized retail segment in the country. Total fashion sector was estimated at Rs
1,914 billion and forms about 15 per cent of the country's retail market of Rs
12,000 billion. Commanding such a large chunk of the organized retail business
in India, fashion retailing has indeed been responsible for single-handedly driving
the business of retail in India.
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Challenges in Retailing
The industry is facing a severe shortage of talented professionals, especially at the
middle-management level. Most Indian retail players are under serious pressure to
make their supply chains more efficient in order to deliver the levels of quality and
service that consumers are demanding. Long intermediation
chains would increase the costs by 15 per cent. Lack of adequate infrastructure with
respect to roads, electricity, cold chains and ports has further led to the impediment of a
pan-India network of suppliers. Due to these constraints, retail chains have to resort to
multiple vendors for their requirements, thereby, raising costs and prices.
The available talent pool does not back retail sector as the sector has only recently
emerged from its nascent phase. Further, retailing is yet to become a preferred career
option for most of India’s educated class that has chosen sectors like IT, BPO and
financial services. Even though the Government is attempting to implement a uniform
value-added tax across states, the system is currently plagued with differential tax rates
for various states leading to increased costs and complexities in establishing an
effective distribution network. Stringent labor laws govern the number of hours worked
and minimum wages to be paid leading to limited flexibility of operations and
employment of part-time employees.
Further, multiple clearances are required by the same company for opening new outlets
adding to the costs incurred and time taken to expand presence in the country.
The retail sector does not have ‘industry’ status yet making it difficult for retailers to
raise finance from banks to fund their expansion plans. Government restrictions on the
FDI are leading to an absence of foreign players resulting into limited exposure to best
practices. Corporate Catalyst India A report on Indian Retail Industry Non-availability of
Government land and zonal restrictions has made it difficult to find a good real estate in
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terms of location and size. Also lack of clear ownership titles and high stamp duty has
resulted in disorganized nature of transactions.
The Challenges Retailers Face :
Meeting and exceeding customer expectations:
Due to revolution in manufacturing, products have become cheap, abundant and
disposable. The customer mindset has changed. People are willing to change their
wardrobe, electronic gadgets and home appliance with the changing trends. However,
due to shorter period of ownership of the product, a customer wants no compromise
with the quality or level of service.
These changing trends have made the retailers to invest more time in details like
express counters in Reliance Mart; or hawking on the spot product-financing in Big
Bazaar (Future Group).
Life-styles could have important implications for marketing strategy decisions. We also
need to understand that the values and life-styles are derived from and personalized
through social and cultural learning .They identify consumer demographics as the
personal factors influencing consumer behaviour.
Study focused on seven consumer behaviour research domains that influence the
customer experience:
(1) Goals, schemes, and information processing
(2) Memory
(3) Involvement
(4) Attitudes
(5) Effect
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(6) Atmospherics and
(7) Consumer attributions and choices.
These behaviours are in addition to normal operation problems like stock outs.
Consumer behaviour patterns in out-of-stock situations also affect customer
expectations. Peckham (1963) categorized behavioural responses into three types:
substitute brand; buy different stock keeping unit (size/color) in same brand; and do not
buy.
Leadership Issue:
What should be the ideal operating strategy followed by a national retail chain? Should
the store be franchisees like Nilgiri’s or owned by the company, like More or Big
Bazaar? Owning every store gives greater flexibility to the company in terms of
transferring sales staff and inventory to various locations in the city. But the advantage
gets reduced, when the sales staffs are not able to identify with particular store and
develop a rapport with the customers. Franchisee system puts greater onus on the
owner-operator to generate sales. Mc Donald’s is the most successful example of a
company with a franchisee system but maintaining the same ambience everywhere.
A significant research has also gone into retail leadership with vast studies devoted to
the Big-Box Concept of Wal-Mart. Impact of rentals on profitability is another big factor.
Business intelligence has also been a major focus with quantitative measurements and
weekly performance meetings dictating the operational processes at many successful
organizations. Operating summary, trends, opportunities and problems, scorecard and
top/bottom performers have become the key dashboard tools.
One of the most powerful and effective strategic tools in retailing is pricing, for which the
options available to retailers range from everyday low price (EDLP) to promotional or
high–low (HiLo) strategies. Prior research demonstrates that both pricing and store
format are influenced by consumer demographics (e.g., income), store factors (e.g.,
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service), and competition. Supply chain also holds the key to the future especially in a
developing market like India where transportation and warehousing facilities have been
a major constraint.
Compensation issues:
The above factors are of no value if not properly executed by the firm’s employees.
Thus compensation management is also a big issue. The employees’ dress, their
demeanour as well as their grooming, may suggest important service quality information
to the consumer. Previous research has documented that organizational commitment is
positively related to job performance and organizational citizenship behaviour, while it is
negatively related to turnover and absenteeism rates, as well as to stress and work-
family conflict.
Research regarding the relationship between employee satisfaction, customer
satisfaction, and business performance can be thought of as the result of three key
linkages:
1. Employee satisfaction to customer satisfaction.
2. Employee satisfaction to financial performance.
3. Customer satisfaction and financial performance.
Retail staffs are the most underpaid and overworked in the industry. Their salary is
usually given after the ‘stock-taking’, which means very late in the month, and gets
reduced depending on items missing from the store. The issue is further compounded
by not being able to relate the performance of the staff with the number of units sold.
Temporary workers working only during peak hours or peak days add another
dimension to the problem. Most of them are not serious about retailing as a career. This
gets reflected in their customer interaction and the amount of dedication to their work.
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The staffs needs to be given more responsibility and compensated accordingly to
develop entrepreneurship.
Also the front-end staffs have greater understanding of customer behaviour due to
constant interaction. This empowers the staff to have a better planning design or even
the store timings. Thus management tools like ‘quality circles’ should not be restricted to
the manufacturing arena. Retail employees should be given the opportunity to
implement their suggestions; and this will help them develop stronger bonds with their
company.
Competition:
In most of the merchandise categories national brands dominate. From soaps and
detergents to even staples like wheat and spices, the national brands spend huge
amounts on R&D and advertising to develop their brands. The products may be of
consistent quality but the extra costs associated with them leave lesser profit margin for
the retailer. Also, if all the stores are selling the same categories of product brands, they
will have no competitive advantage.
A national brand manufacturer having bias towards a particular retailer or marketing
channel may even neglect others while introducing limited period products or offers.
Retailers have to develop private labels with superior quality and lesser prices than
national brands. These will not only compete with the national brands but also with the
private labels of their competitors. However, the retailers can have misguided
strategies, like Vishal using the brand ‘Vklean’ in everything from shoe polish to razors.
The major retailers like Wal-Mart carrying private brands also have more power over
manufacturing, quality control and delivery of the goods. Nilgiri’s private label for dairy
products has been so successful that it is sold in smaller non-chain supermarkets. The
manufacturer primarily is interested in using promotions to enhance the performance of
its brands, whereas the retailer is interested in enhancing their own performance.
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The shift from mostly vertical supply relationships to hierarchical multichannel
relationships reduces the power of the retailer, all else being equal, because the
supplier now has direct consumer access. As suppliers leverage their intimate product
knowledge, lower costs, and centralized inventory, they can not only appropriate sales
and profits from their retail partners but also develop alternative avenues for consumer
insights, all of which reduces the supplier’s dependence on its retail partners and
increases supplier–retailer conflict. The private labels in this scenario can be the
saviours.
Service Strategies for Retailers :
Retailing is becoming a zero sum game and the only way to attract more customers
now is to get them from the competitors. Exceeding customer expectations is not just a
cliché. The strategy would require proper organizational planning and flexibility.
Location is still the most important factor in retail, but a customer also looks for other
factors besides convenience. For example, in the double income families, mobility may
not be a problem because of vehicle ownership but time is a major constraint. For these
shoppers, especially at weekends, shopping in the departmental store is the time to get
their weekly supplies. They require different promotional strategy and interaction.
Home delivery is the buzzword but customers still prefer to come to the store
themselves and select the product before availing home delivery. This is because they
are unsure of the quality. A company especially a vegetable and meat retailing chain
like Reliance Fresh can score over its competitors by delivering better quality products.
Relationship marketing is as applicable to retail as to other services but is presently only
practiced by apparel or jewellery retailers. This will change in the future when the retail
market becomes more competitive.
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To be customer-centric, an organization would also require to process huge amounts of
information to understand the needs of the market segment. Even a transnational
organization with global operations would have to formulate strategies to suit the
individual needs on the local scale. With standardized products becoming the norm,
service delivery will become the differentiator. Service delivery should not be just an
addition to the product package but a means to gain additional revenue out of the
customer. It is directly linked to profitability and increase in the value of the brand equity
of the organization. Service delivery in retail would not only be limited to facilities like
home delivery or product financing, but providing value for money for the goods sold.
The responsibility of a company towards its customers depends on its service delivery.
Konosuke Matsushita, founder of Panasonic, once remarked that ‘Social responsibility
for a company implies developing new ways to make better products, more effective
sales methods and betters services.’ The organizations not only need to benchmark but
set new standards in order to be more competitive. This new level of commitment to the
customer will require help from other service organizations like Information Technology
service providers for CRM, telecom companies for communication and media solution
companies for awareness. Service delivery would have to be considered as one of the
core activities of the organization and capability development issues also need to be
addressed. The end result of all these efforts would not just be a happy customer or a
happy shareholder but a self-sustaining organization having the resources to serve the
society better and fulfil all the aspirations of various stakeholders.
3. INVESTMENT POLICY AND INITIATIVES :
3.1 FDI Policy in the Retail Sector
India has kept the retail sector largely closed to outsiders to safeguard the livelihood of
nearly 15 million small storeowners and only allows 51 per cent foreign investment in
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singlebrand retail with prior Government permission. FDI is also allowed in the
wholesale business. Single-brand retailers such as Louis Vuitton, Fendi, LLadro, Nike
and Toyota can operate now on their own. Metro is already operating through the cash-
and-carry wholesale mode.
The policy makers continue to explore areas where FDI can be invited without hurting
the interest of local retail community. Government is considering opening up of the retail
trading for select sectors such as electronic goods, stationery, sports goods, and
building equipment. Foreign direct investment (FDI) in retail space, specialized goods
retailing like sports goods, electronics and stationery is also being contemplated. The
Government has to walk a tightrope to ensure a `level playing field' for everyone.
The policy of permitting 51 per cent FDI in single-brand product retailing has led to the
entry of only a few global brands such as Nike (footwear), Louis Vuitton (shoes, travel
accessories, watches, ties, textiles ready-to wear), Lladro (porcelain goods), Fendi
(luxury products), Damro (knock-down furniture), Argenterie Greggio (silverware,
cutlery, traditional home accessories and gift items) and Toyota (retail trading of cars),
into retail trading. A 12-billion euro French luxury industry is also eyeing the domestic
luxury segment to make a presence through retailing directly.
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Business models for entry in Indian markets
Due to the FDI restrictions the international players are looking for alternative avenues
to enter the Indian markets. However FDI restrictions in retailing have not deterred
prominent international players from setting up shops in India.
In recent developments, the Australian retail giant Woolworth Ltd made in innovative
entry in India’s retail space, with India’s Tata group.
The Tata group has floated Infiniti Retail Ltd, in venture with which will sell consumer
goods and electronics across the country. Infiniti Retail will be a 100 per cent subsidiary
of Tata Sons and will receive an initial equity infusion of Rs 4 billion. This Tata retail
venture joined hands with Australian retail giant Woolworths Ltd, which currently
operates more than 2,000 stores in 12 different formats. While Infiniti will own and run
retail operations in India, Woolworths, which has attained notable success in selling
electronics and consumer goods through its Dick Smith Electronics chain, will provide
technical support and strategic sourcing facilities from its global network.
At present entry into India’s retail sector can be done through three different routes. The
chart below shows the current formats permitted by the Government of India for the
International players. Current entry options for foreign players Franchise agreements
•Most widely used entry route by multinational retailers
Fast food retailer Domino’s entered India through master franchise root while
Pizza Hut entered through regional franchisee Cash and Carry wholesale trading
100% FDI is allowed in wholesale trading which involves building of a large
distribution infrastructure to assist local manufacturers
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The wholesaler deals only with smaller retailers and not consumers
Metro AG of Germany was the first significant global player to enter India through
this route Strategic licensing agreements
Foreign company enters into a licensing agreement with a domestic retailer
Mango, the Spanish apparel brand has entered India through this route with an
agreement with Pyramids, Mumbai
SPAR entered into a similar agreement with Radhakrishna Food lands Pvt. Ltd
Corporate Catalyst India A report on Indian Retail Industry
Functions of retailing:
Retailers play a significant role as a conduit between manufactures, wholesalers,
suppliers, and consumers. In this context, they perform various functions like storing,
breaking bulk, holding stock, as a channel of communication, storage, advertising, and
certain additional services.
Storing:
Manufacturers usually make one or a variety of products and would like to sell
their inventory to a few buyers to reduce costs. Final consumers, in contrast, prefer a
large variety of goods and services to choose from and usually buy them in small
quantities. Retailers are able to balance the demands of both sides, by collecting an
assortment of goods from different sources, buying them in sufficiently large quantities,
and selling them to consumers in small units.
The above process is referred to as the storing process. Through this process,
retailers undertake activities and perform functions that add to the value of the products
and services sold to the consumer. Supermarkets in the US offer, on an average,
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15,000 different items from 500 companies. Customers are able to choose from a wide
range of designs, sizes, and brands from one location. If each manufacturer had a
separate store for its own products, customers would have to visit several stores to
complete their shopping. While all the retailers offer an assortment, they specialize in
types of assortment offered and the market to which the offering is made. Westside
provides clothing and accessories, while a chain like nil irises specializes in food and
bakery items. Shoppers stop targets the elite urban class, while pantaloons is targeted
at the middle class.
Breaking bulk:
Breaking bulk is another function performed by retailing. The word retailing is
derived from the French word retailer, meaning to cut a piece of. To reduce
transportation costs, manufacturers and wholesalers typically ship range cartons of the
products, which are then tailored by the retailers into smaller quantities to meet
individual’s consumptions needs.
Holding stock:
Retailers also offer the service of holding stock for the manufacturers. Retailers
maintain an inventory that allows for instant availability of the products to the
consumers. It helps to keep prices stable and enables the manufacturer to regulate
production. Consumers can keep a small stock of products at home as they know that
this can be replenished by their retailer and can save on inventory carrying costs.
Additional Services:
Retailers ease the change in ownership of merchandise by providing services
that make it convenient to buy and use products. Providing products guarantees, after-
sales services and dealing with consumer complaints are some of the services that add
value to the actual product at the retailers end. Retailers also offer credit and hire-
purchase facilities to the customers to enable them to buy a product now and pay for it
later. Retailers fill orders, promptly process, deliver and install products. Salespeople
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are also employed by retailers to answer queries and provide additional information
about the displayed products.
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About service Industry
The service industry plays an increasingly important role in the economy of many
countries. In today’s global competitive environment delivering quality service is
considered as an essential strategy for success and survival. Even the public sector
organizations have come under increasing pressure to deliver quality services and
improve efficiencies. Customer needs and expectations are changing when it comes to
governmental services and their quality requirements. However, service quality
practices in public sector organizations is slow and is further exacerbated by difficulties
in measuring outcomes, greater scrutiny from the public and press, a lack of freedom to
act in an arbitrary fashion and a requirement for decisions to be based in law . Quality
is considered to be one of the management’s topmost competitive priorities and
prerequisite for sustenance and and growth of firm. The quest for quality improvement
has become a highly desired objective in today’s intensively competitive market. Quality
management has been reckoned as the prime mover towards enhanced business
performance and several researchers have underlined the quality improvement
initiatives resulting in a sustainable competitive advantage. Service quality is
determined by the differences between customers' expectations of service provider's
performance and their evaluation of the services they received. In this way, the
association between service quality and customer satisfaction has emerged as a topic
of significant and strategic concern. In general, research in this area suggests that
service quality is an important indicator of customer satisfaction. The service quality
means to customer’s satisfaction, which leads to customer loyalty, considerable
practitioner interest has focused on programs to improve service quality. Customer
perception is very important factor to measure service quality.
Service Quality plays a significant role in the existence of an organization. The good
image in the mind of consumers, their reliability on the organization and their purchase
intention are all result of Service Quality. Therefore previous studies have discussed the
importance of customer’s opinion and service quality. The customers are the main
reason of existence of the concept of Market Orientation. The constant struggle to
measure the service quality has led to the creation of many service quality
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measurement models. Some are created due to realization of certain conceptualized
dimensions in the environment, while others have empirically showed the significance of
these dimensions to the service quality .
Quality has been the main interest of many researchers in the past; however
even with such extensive research on this topic, the concept of quality is still
unresolved . Many researchers have viewed it as an outcome of the organization
planning, where as many have discussed it with respect to the value for quality in an
organization . Therefore Total Quality Management and Market Orientation strategies
have been adopted previously to address the quality related issues. However in the
beginning the researchers spend more time defining the customers and their
requirements . Thus at that time no importance was given to the measurement and
achievement of the customer’s trust. In the late 1980,s researchers started measuring
quality from the perspective of the customers, in order to fulfill the customer
need .Service Quality plays a significant role in the existence of an organization. The
good image in the mind of consumers, their reliability on the organization and their
purchase intention are all result of Service Quality. Therefore previous studies have
discussed the importance of customer’s opinion and service quality. The customers are
the main reason of existence of the concept of Market Orientation. The constant
struggle to measure the service quality has led to the creation of many service quality
measurement models. Some are created due to realization of certain conceptualized
dimensions in the environment, while others have empirically showed the significance of
these dimensions to the service quality. It is sometimes said that success is the result of a good
plan well executed. For a retailer, plans are mostly formulated at corporate headquarter
and executed in their stores. Corporate planning functions include choosing the
assortment of products to carry in each store at each point in time, setting store
inventory levels and product prices, setting staffing levels, determining how many stores
to have and where they are located and creating the physical design of stores and
planograms that specify the location of all products within each store.
A retail store is an interesting amalgam of a factory and a sales office and store
employees are responsible for a wide range of execution tasks that collectively
determine the success of corporate plans. Factory related store execution tasks include
29
receiving product, moving product from the back room to shelves as needed, putting
items moved by a customer back to where they belong on the shelf and checking
customers out. Fisher (2004) notes similarities between the execution tasks of a retail
store and an automobile assembly plant, and suggests drawing on the Toyota
Production System as a source of ideas for improving retail store execution. Sales office
store execution tasks include all interactions with customers, such as greeting them,
asking if they need help, and when requested, providing advice to enable them make a
purchase decision and to find the products they have decided to buy. Academic
research to date has focused almost exclusively on planning functions. For example,
the operations management literature includes numerous papers on inventory
optimization that are applicable to setting planned inventory levels in a retail store.
Recently, however, a few pioneering papers (Raman et al. 2001a, 2001b, DeHoratius
and Raman 2003, Ton and Raman 2004, Corsten and Gruen 2003, Ton and Huckman
2005, Van Donselaar et al. 2006) have provided evidence of deficiencies in
retail store execution, suggesting that optimized plans might be severely blunted by less
than perfect execution. Although these papers have focused mostly on missing
inventory, inventory record inaccuracy and inventory replenishment, it is reasonable to
suspect that, given the high level of problems withinventories, other aspects of retail
execution are imperfect also.
The service quality means to customer’s satisfaction, which leads to customer loyalty,
considerable practitioner interest has focused on programs to improve service quality.
Customer perception is very important factor to measure service quality. This paper
aims to assess customers perception on the different dimensions of service quality such
as responsiveness, tangibility, assurance, empathy, reliability and the overall service
quality in retail store. Serving both consumer and wholesale banking customers, the
bank combines deep local knowledge with global capability to offer a wide range of
innovative products and services aswell as award winning solutions.
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Nature of service quality
1. Service quality a perception of performance or disconfirmation
2. The service is a single construct or an aggregation of several dimensions.
The aim of the current article is to analyze the debates around the conceptualization of
the service quality and to find evidence from empirical studies to support particular
viewpoints. The conceptualization of the services is based on the disconfirmation
paradigm – perceived quality is viewed as the result of comparing particular
performance with some kind of a standard.
Customer perception of the service process is divided into two dimensions:-
1. Technical quality- The outcome dimension, or what the process leads to for the
customer as a result of the process
2. Functional quality – The process dimension, or how the service process
functions.
Customer perceive the quality of the service in these two dimension – what they get it .
image, on a campany and/or local level, serves as a filter that influences quality
perception either favorably, neutrally, or unfavorably, depending on whether the
customer consider the service provider good, neutral, or bad.
Services unlike tangible products are produced and consumed at the same time in the
presence of the customer and the service producer. The presence of the human
element during the service delivery process greatly increases the probability of error on
the part of employees and customers. One of the key elements in many of these service
quality improvement programs has been the measurement of service quality. Service
quality measurement is important as it gas the potential to offer insights into areas of
service quality strengths and weakness. Overall service quality includes interaction
quality, product quality and outcome quality as described by Bitner & Zeithaml (2003).
They also proposed the use the SERVQUAL dimensions to assess a company’s service
quality.
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Reliability: Reliability means ability to perform the promised service dependably and
actually.
Responsiveness: Responsiveness means willingness to help customers and provide
prompt service.
Assurance: It means employees’ knowledge and courtesy and their ability to inspire
confidence.
Empathy: It means caring, individualized attention given to customers.
Tangibles: It means appearance of physical facilities, equipment, personnel, and
written materials.
Overall service quality includes interactions quality, physical environment quality and
outcome quality. These elements are in turn evaluated based on specific service quality
dimensions: reliability, responsiveness, assurance, empathy and tangibles. To provide
more direct and useful information for both academics and managers with respect to
service quality and product quality issues.
Reliability and Overall Service Quality
According to berry, Zeithaml & Parasuraman (1990), service reliability is the service
“core” to most customers and managers should use every opportunity to build a “ do-it-
right-first” attitude. Specially managers are encouraged to include reliability issues in
their mission statements, set reliability standards, teach the importance of reliability in
training programs, appoint reliability teams to study specific services and recommend
ways to improve reliability, measures error rates and reward error –free service.
Reliability of service can be better established with a relative emphasis on technology
(high tech) in developed countries and a relative emphasis on personnel (high touch) in
developing countries (Heskett, Jones, Loveman, Sasser, & Schlesinger, 1994). Berry
and Parsasuraman (1991) identified that continuous improvement is the key to providing
reliable service. The above discussion shows that ability to render prompt and
dependable service is an important factor to evaluate a company’s overall service
quality.
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Responsiveness and overall Service Quality
Service recovery and problem solving have long been recognized as important parts of
servicequality (Hart, Heskett, & Sasser, 1990; dabholkar, Thorpet Rentz, 1996;
Swanson and Kerlley,2001). Responsiveness was perceived to be the most important
dimension as opposed to the reliability from published literature (Zenithal et al., 1990).
Responsiveness perceptions diminish when customers find difficulties to access a
company through telephone and put on hold, or have trouble accessing the company’s
website. All these circumstances gradually diminish customers overall evaluation of
service quality.
Tangibility and Overall Service Quality
Tangibility refers to the physical evidence of the service, consisting of physical facilities,
appearance of personnel, tools or requirements, physical presentation of the service,
and other customers in the service facility (Parasuraman et al., 1990). All of these
provide physical representation or images of the service that both existing and new
customers will use to evaluate quality. The core benefits of a service refer to the
essence of the service that can never be substitute by fancy facilities and tangibles
(Schneider & Bowen, 1999). These arguments give hints concerning the connection of
tangibility and overall service quality. Oberoi and Hales (1990) noted that the
importance of tangibles in a conference hotel is a measure of performance which, when
purchased, provides nothing tangible that the consumer can posses. Parasuraman etal.,
(1988) proposed that consumers’ perception of tangibles is more important in the case
of a bank than in security brokerage, and product repair and maintenance.
Assurance and Overall Service Quality
Assurance is defined as employees’ knowledge and courtesy and the ability of the firm
and its employees to inspire trust and confidence. This dimension is likely to be
particularly important for services that the customer perceives as involving high risk and
about which they feel uncertain about their ability to evaluate outcomes for example
banking, insurance, brokerage, medical, and legal service.
33
Empathy and Overall Service Quality
Parasuraman et al., (1991), the empathy dimension got split into two factors. Four items
comprised one of the factors, and the item that addresses“the convenience of operation
hours”formed the other factor. According to Philip Kotler (1999), Bitner & Zeithaml
(2003), empathy means the provision of caring, individualized attention given to the
customers. Small businesses to large ones, customers want supplier firms to
understand their industries and issues. Bitner & Zeithaml (2003) also stated, firms which
have successfully practiced this strategy have built long term relationship with
customers positioned them as specialists in their respective industry.
The Service-Performance Gap.
• Provide data on performance, on definition of standards
for excellent service
• Provide opportunity to change and to grow
• Provide training - educate employees about customers
• Harmonise roles - define in customer service terms
• Develop team environment - work together
• Empower people to solve problems
• Provide support to employees to create high performance service The need for a
measurement instrument that can accurately assess service quality in a retail
environment was answered byDabholkar et al. (1996) who developed and empirically
validated a scale to measure retail service quality distinctively. Indeveloping the
instrument, the researchers conducted a triangulation of research techniques involving
interviews with severalretail customers, in-depth interviews with six customers and a
qualitative study that monitored the thought process of three customers during an actual
shopping experience. These three differing methods combined with a review of service
qualityrelated literature and some modification to the original SERVQUAL scale
produced a hierarchical factor structure scale.
34
Overall service quality includes interactions quality, physical environment quality and
outcome quality. These elements are in turn evaluated based on specific service quality
dimensions: reliability, responsiveness, assurance, empathy and tangibles. To provide
more direct and useful information for both academics and managers with respect to
service quality and product quality. Service Quality plays a significant role in the
existence of an organization . The good image in the mind of consumers, their reliability
on the organization and their purchase intention are all result of Service Quality.
Therefore previous studies have discussed the importance of customer’s opinion and
service quality. Service quality refers to the difference in perceptions and expectations
of the consumer however now service quality is to achieve customer’s satisfaction,
Which is measured by expectation and provided services? The retailers rendered timely
supply of right products, performed time promised services and error free sales
transactions which enabled the service quality. Moreover personal interaction was
another factor which influenced the service quality. An employee in retail stores gives
individual care to their customers. Confidential behaviour of employees also boosted the
service quality. Another factor, problem solving is a difficult one on the par t of retailers
because the retailers solved the problems of customers with sincerity and handled the
customers’ complaints in time. They also accepted the returns of goods and exchanges
made by the retail shoppers. Finally, the SERVQUAL factor examines the retail store
quality offerings to its customers. More development is needed in the par t of credit
cards provided in their own name. So, retail managers have to concentrate on this part
and try to improve conceptualized acceptance in providing own credit cards to its
regular customers. To conclude, this research paper based on the research implications
of RSQS instrument paves the way for directions in future research. It proposes more
developments to be contributed in this discipline.
35
Gap model of service quality:
The Gap model of service quality was developed by Parasuraman, Berry and Zeithaml
(1985), and more recently described in Zeithaml and Bitner (2003). It has served as a
framework for research in services marketing, including hospitality marketing, for over
two decades. The model identifies four specific gaps leading to a fifth overall gap
between customers’ expectations and perceived service
36
What does SERVQUAL mean?
The SERVQUAL model was developed by A. Parasuraman and colleges in the USA.
SERVQUAL is based on the expectations disconfirmation approach known as
disconfirmation paradigm.
The model of service quality, which they made, identifies the reasons for any gaps
between customer expectations and perceptions (see the chart ABOVE). Gap 5 is the
product of gaps 1, 2, 3 and 4. The gaps are as follows.
Gap 1: Not Knowing what customers expect
Gap 2: Not selecting right service design and standards
Gap 3: Not delivering as per service design and standards
Gap 4: Not matching performance to promises
Gap 5: Difference between customer expectations and perceptions
Reasons for GAP 1 Reasons for GAP 2
Inadequate marketing research Poor service design
Lack of upward communication Absence of customer-driven
standards
Insufficient relationship focus Inappropriate physical
evidence
Inadequate service recovery.
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Reasons for GAP 3 Reasons for GAP 4
Deficiencies in human resource policies Lack of integrated marketing
communications
Customers who do not fulfill roles Ineffective management of customer
expectations
Problems with service intermediaries Overpromising
Failure to match supply and demand. Inadequate horizontal communications.
Gap1 Prescription:
Learn What Customers Expect
Get a better understanding of customer expectations through research, complaint
analysis, customer panels, etc.
Increase direct interactions between managers and customers to improve
understanding
Improve upward communication from contact personnel
Turn information and insights into action.
Gap2 Prescription:
Establish the Right S Q Standards
Top management ongoing commitment to quality
Translation by middle management
Train managers
Standardize repetitive work - consistency & reliability
38
Establish clear S. Q. goals
Employees should prioritize tasks
Employees must understand and accept goals and priorities
Reward managers and employees for attaining quality goals.
Gap3 Prescription:
Ensure Service Performance Meets Standards
Clarify employee roles
Provide technical training
Match employees to jobs
Develop innovative recruitment and retention methods
Enhance employee performance
Teach employees about customer expectations, perceptions, and problems
Train employees in interpersonal skills
Eliminate role conflict
Treat customers as “partial employees”.
Gap4 Prescription:
Ensure That Delivery Matches Promises
Seek inputs from operations personnel when new advertising programmes are being
created
Develop advertising featuring real employees
Preview advertisements before release
39
Develop internal education
Ensure that consistent standards of service are delivered across multiple locations
Manage customers’ expectations by letting them know what is and is not possible – and
the reasons why
Identify and explain uncontrollable reasons for shortcomings in service performance.
40
PROFILE OF THE COMPANY
Big Bazaar
“Isse sasta aur accha kahin nahi”
Shop till you drop! Big Bazaar has democratized shopping in India and is so much more
than a hypermarket. Here, you will find over 170,000 products under one roof that cater
to every need of a family, making Big Bazaar India’s favorite shopping destination.
Big Bazaar stepped into North Karnataka in Hubli on July 2007 with floor space of
50,000 sq. ft. at Gokul Road, Hubli. A place well connected with Air, Road and Rail
transportation. Big Bazzar is the first retail outlet to the people of Hubli. This is the ninth
outlet in the state. This takes Big Bazaar to the next level. At Big Bazaar, you will get
the best products at the best prices this is our guarantee. From apparel to general
merchandise like plastics, home furnishings, utensils, crockery, cutlery, sports goods,
car accessories, books and music, computer accessories and many, many more. Big
Bazaar is the destination where you get products available at prices lower than the
MRP, setting a new level of standard in price, convenience and quality.
Because of its First mover advantage, it could able to grab good market with good
customer base. If you are a fashion conscious buyer who wants great clothes at great
prices, Big Bazaar is the place to be. Leveraging on the company’s inherent strength of
fashion, Big Bazaar has created a strong value-for-money proposition for its customers.
This highlights the uniqueness of Big Bazaar as compared to traditional hypermarkets,
which principally revolve around food, groceries and general merchandise.
Boasting of an impressive array of private labels, Big Bazaar is continually striving to
provide customers with a ‘complete’ look. So be it men’s wear, women’s wear, kids
wear, sportswear or party wear, Big Bazaar fashions has it all!
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Big Bazaar has clearly emerged as the favorite shopping destination for millions of its
consumers, across the country, it’s success is a true testament to the emotional
bonding it has established with the Indian consumer, on account of its value offerings,
aspirational appeal and service levels. We believe Big Bazaar is a true pan-Indian
model that can enter into most towns in India and democratize shopping everywhere.
The project is all about to determine the satisfaction level of the customers from
the store environment and analyze the impact of retailing mix on the customer
satisfaction level, and to improve the store environment to increase the sales and to
attract the customers, this study helps to improve the environment of the store to reach
the customer satisfaction level and improve the merchandising in Big Bazaar.
NATIONAL HANDLOOM
National handloom is a unit of Rational handloom co.pvt. Ltd. National handloom
co. is providing quality services to customers since 1979. Its branches are in Jodhpur,
Jaipur, Barmer, & Ahemdabad. It provide the facility of home delivery and online
shopping. It is a traditional store . Traditionally the retail business is run by having
Shop in the front & house at the back. More than 99% retailers function in less than
500Sq.Ft of area. All the merchandise was purchased as per the test & vim and fancies
of the proprietor also the pricing was done on ad hock basis or by seeing at the face of
customer. Generally the accounts of trading & home are not maintained separately.
Profits were accumulated in slow moving & non-moving stocks which were to become
redundant or consumed in-house. Thus profits were vanished without their knowledge.
The Manufactures were to distribute goods through C&F (Carry and Forward) agents to
Distributors & Wholesalers. Retailers happen to source the merchandise from
Wholesalers & reach to end-users. The merchandise price used to get inflated to a
great extent till it reaches from Manufacturer to End-user. Selling prices were largely not
controlled by Manufacturers. Branding was not an issue for majority of customers. More
than 99% customers are price sensitive & not quality or Brand Sensitive at the same
time they are Brand conscious also.
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Review of literature
A.Parsurama, Leonard L.Berry, and valarie A. Zeithmal,(1988) in their study described
about development of 22 item instrument in the assessment of the service quality
perception of the customers in the service and retail firms, which was called as
“SERVQUAL”. According to them service quality include competence, courtesy,
credibility, security, tangibles, reliability, responsiveness, communication, and
understanding the customer. Authors also proposed that “SERVQUAL” scale can help a
vast range of services and retail firms to assess the customer expectation and
perception of services quality as it had a variety of potential application. In their study
the service quality of the retailers was scrutinized and the conclusion reached that, it will
lead to understand the service quality of retailers in our country. According to them
conceptual model of the impact of service quality on particular behaviors that signal
whether customers remain with or defect from a company. Empirical results examining
relationships from the model concerning customers' behavioral intentions show strong
evidence of their being influenced by service quality. One interesting proposition they
make is that "The quality that a consumer perceives in a service is a function of the
magnitude and direction of the gap between expected service and perceived service".
Parasuraman have defined service quality as the ability of the organization to meet or
exceed customer expectations. It is the difference between customer expectations of
service and perceived service.
Service Quality was operationally by Brady and Cronin (2001) find through qualitative
and empirical research that the service quality construct conforms to the structure of a
third-order factor model that ties service quality perceptions to distinct and actionable
dimensions: outcome, interaction, and environmental quality. Each dimension has three
sub-dimensions that define the basis of service quality perceptions. For each of these
sub-dimensions to contribute to improved service quality perceptions, the quality
received by consumers must be perceived to be reliable, responsive, and empathetic.
Li, Tan and Xie (2003) suggest that a company's ability to achieve excellent service
quality depends on the choice of service attributes, their desired levels, and the
prioritization of service attributes. They investigate the asymmetric and nonlinear nature
43
of the relationship between service quality gaps and overall service quality (quality that
is worse than expected hurts more than quality that is better than expected helps), and
develop a model that applies utility theory to the prioritization of service attributes. In
1993, Teas developed two models for measuring service quality. Teas was not
convinced with the entire concept of measuring the customer perceived quality with the
gap of perception and expectation as in SERVQUAL. The major emphasis of the
researcher was on the conceptual understanding of Expectation, since the expectation
associated to the services could exceed the actual level of performance of the
company. Therefore the researcher developed Evaluated Performance model (EP) in
order to measures the gap between perceived performance and ideal amount of a
performance to gain consumer satisfaction. Further catering to the expectation, the
researcher concentrated on the prospect created after the experience of the consumer.
Teas (1993) perceived Excellence norm as a result of positive experience of the
customer, this led to the creation of Normed Quality model. NQ measures the Quality
gap between excellence norm and ideal amount of expectations of the consumer. Both
the measurement models are applicable to various industries. However the EP and NQ
measurement model were not applied by other researchers in the literature. Lo & Hui,
(2003) presented a paper that deliberately conceptualizes service quality
Factors (such as reliability and responsiveness) as being antecedents to customers’
overall evaluation of service quality, rather than conceptualizing them as dimensions or
components of the construct. Sparks and Westgate (2002) suggest that service failure
can have devastating effects on an organization because customers frequently switch to
a different provider when they experience a service failure. However, among customers
who experience service problems, those who receive satisfactory resolution are more
likely to remain loyal to the service provider. According to Spreng and Mackoy (1996),
there is no clear definition of satisfaction, although most definitions would involve “an
evaluative, affective or emotional response.” The distinction between perceived service
quality and satisfaction is important because managers need to know whether their
objective is to provide the maximum level of perceived service quality or to have
satisfied customers. The standard of comparison in forming satisfaction is predictive
expectations, or what the consumer believes will happen. Perceived service quality is
44
the result of a comparison of performance and what the consumer feels a firm should
provide. Oliver (1993) claims that a customer can experience both negative and positive
affective reactions. Le and Sherwyn (1998) found that customers tipped significantly
more when touched than when not touched and that the duration of the touch (two
seconds versus four seconds) had no effect on tipping. According to Guo (2002,
p.1157) the three main forms of Service provided are ‘People Processing Service
(health care), Possession Processing Service (perfume) and Information-Based
Services (banking)’. Maintaining Service Quality has been considered as an edge for
many organizations.Therefore Service Quality has been used as an aggressive strategy
to overcome the external pressure (Slater and Narver, 1994; La and Kandampully,
2004; Azmi, et al.,2008; Legcevic and Strossmayer, 2008). Cronic and Taylor
(1992) ,however ,argue that the conceptualization of services as a gap between
expectation and performance is inadequate. They point out the confusion in pertaining
literature over the relationship between services quality and the consumer satisfaction is
defined as a gap between expectation and the performance. By Gronroos (1984), the
customer perception of the services processes are divided into two dimension technical
quality and functional quality. BANKSERV instrument proposed by Avkiran (1999)
should be modified by adding tangibles dimension because it is now considered as an
important dimension in every country all over the world to measure service quality in all
sectors and thus this instrument will be an appropriate battery to measure the service
quality in the banking sector. As a result, the author proposes five dimensions in the
BANKSERV instrument, which are listed in and are used in this study to measure
service quality in the banking sector because some problems are identified with
SERVQUAL to measure service quality. The main problem with SERVQUAL is to
compare perceived performance with expectations in separate items (22-expectations
items and 22-perceptions items), whereas the BANKSERV instrument captures the
similar comparison of perceived performance with expectations in a battery of single
statements (Avkiran, 1999). A review of the relevant literature reveals the existence of
various approaches to conceptualize e-services. Rust and Lemon (2001, p. 86) very
generally describe e-services as “ providing a superior experience to consumers with
respect to the interactive flow of information”. This broad understanding may serve as a
45
basis for a further, more detailed investigation. Grönroos et al. (2000) provide a more
differentiated definition in proposing the so-called NetOffer model, according to which
online services can be divided into a functional dimension (what is delivered in terms of
service outcome) and a technical dimension (how is it delivered in term of service
process). Yet, to fully capture all dimensions of an electronic service the
functional/technical approach has to be expanded by taking into account an additional
dimension comprising all aspects that take place before the actual delivery of the
service. Barnes and Vidgen (2001) draw upon the SERVQUAL model in order to
generate a pool of quality items. Based on an analysis in the field of online book trade,
the authors extract five key dimensions each of which encompasses two sub-
dimensions: tangibles (aesthetics, navigation), reliability (reliability, competence),
responsiveness (responsiveness, access), assurance (credibility, security) and empathy
(communication, understanding the individual). Overall, the developed WebQual scale
focuses on technical quality aspects like ease of use and is therefore more useful for
the field of interface design than for holistic quality measurement. We argue that not
considering hedonic aspects of online shopping (e.g. fun or enjoyment) is amajor
omission. Van Riel et al. (2001) propose a classification of service components which is
based on the “technical/functional quality framework” by Grönroos et al. (2000) and
comprises the following aspects: core services, facilitating services, supporting services,
complementary services, and user interface. In doing so, they attempt to assess the
quality of e-sGrönroos (1984) offered a two-dimensional model comprised of technical
quality and functional quality (pp. 29-38). Lehtinen and Lehtinen (1983) set forth a two-
dimensional approach to service quality consisting of process quality and outcome
quality. Lehtinen and Lehtinen (1991) also introduced a three dimensional approach
comprised of physical quality, interactive quality, and corporate quality (pp. 288-290).
Parasuraman, Zeithaml and Berry’s (1988a) SERVQUAL model consisted of five
dimensions, which includes tangibles, reliability, responsiveness, assurance and
empathy (pp. 12-40). Rust and Oliver (1994) introduced a three-dimensional model of
service quality encompassing the service product, service delivery and service
environment measuring customer satisfaction. Atilgan et al. (2003) suggest that cultural
characteristics have an effect on perceptions of service quality . They found that
46
different cultural groups can have different levels of expectations and perceptions in
terms of service-quality dimensions (p 420). Therefore, many of the items on the
SERVQUAL instrument can be salient to different customers for different reasons.
Brown and Bond III (1995) attribute the importance of these items as to whether or not
the customer is conscious of aspects such as time, quality of work, finances, and so
forth (p. 30). Caruana (2000) claims that service quality and satisfaction have often
been used interchangeably. Distinctions between customer satisfaction and service
quality include: a) satisfaction is a post- experience decision customer experience while
quality is not; b) in the satisfaction literature “expectations reflect anticipated
performance” made by customers about levels of performance during a transaction. In
the service quality literature, expectations are conceptualized as a normative stand of
future wants.
After the review of literature on development of Service Quality Measurement
Models from 1988 to 2008, the comparison of measurement models have been
done on the basis of acceptance and usage in the literature. Since the development
of SERVQUAL and SERVPERF in 1988 and 1992, these measurement models
have been extensively used by many researcher in their relevant industry, thus
the comparison of SERVQUAL with SERVPERF has been done in order to check
which model is better than the other. Considering the developed Performance Based
Measurement Models two of the models have been created on the basis of
Performance, thus for that reason SERVPERF and HEdPERF have been compared.
Since SERVPERF is already accepted by many researchers, thus the main purpose
is to configure the suitablilty of both the models and also the development of a
modified version of HEdPERF model has been shown. SERVQUAL has been a widely
accepted method for Measuring Service Quality in various industries. From 1988 to
2008 it has still been used by many researchers to measure the service quality in
their industry of interest. However in 2008, SERVCESS was created by selecting one
dimension of the SERVQUAL i.e. Tangible (Physical facilities and equipment). The
role of equipment in measuring service quality refers to the changes made in the up
gradation of the equipment (computers, projectors, multimedia), which has not been
emphasised in the SERVQUAL. Thus by comparing SERVQUAL and SERVCESS the
47
effectiveness of the SERVQUAL model is checked with respect to the importance of
Information system. Considering the trend in development of Service Quality
Measurement Models, it has come into consideration that since 1996 to 2008 the
researchers have developed Service Quality Measurement Models specifically for the
Higher Education Industry (HEI). Thus quality management in Higher Education
Industry plays a fundamental role. Quality basically maintains equilibrium between the
internal and external environment of an institution. Thus researchers have been trying to
create an instrument that fits the requirement of the education industry. In the paper I
have highlighted the main variables considered important by the researchers for the
higher education industry and then further discussed them with respect to their
importance in the Higher Education Industry. The main variable considered in
developing theService Quality Measurement Models especially for Higher Education
Industry areTotal Quality Management (TQM) in Higher Education TQM Excellence
Model(HETQMEX), Performance of the institution in Higher Education Performance
Model (HEdPERF), Market Orientation in Service driven Market Orientation Model
(SERVMO) and Information System in Service Quality and Information System Success
Model (SERVCESS). Thus this review paper covers the relevance of Service Quality,
with respect to the development of the measurement models as well as its relevance in
the Higher Education Industry. A visual representation has been given on the next page
as figure 1 with respect to the sequence of the review paper. According to Spreng and
Mackoy (1996), there is no clear definition of satisfaction, although most definitions
would involve “an evaluative, affective or emotional response.” The distinction between
perceived service quality and satisfaction is important because managers need to know
whether their objective is to provide the maximum level of perceived service quality or to
have satisfied customers. The standard of comparison in forming satisfaction is
predictive expectations, or what the consumer believes will happen. Perceived service
quality is the result of a comparison of performance and what the consumer feels a firm
should provide (pp. 201-214). Burns et al. (2003) describe negative disconfirmation as
an occurring when performance is less than expectations. Positive disconfirmation is
evident when performance is greater than expectations (pp. 363-380). Customer
satisfaction results in the disconfirmation of prior expectation, that is if the service
48
provider meets or exceeds expectations then the customer is more likely to be satisfied
(Rust et al., 1995). Millán & Esteban (2004) claim that satisfaction is perceived as the
final result of all activities carried out during the process of purchase and consumption.
All reviewed definitions imply:a) the existence of an objective that the consumer wishes
to reach; 2) the attainment (satisfaction) of this objective can only be judged by taking a
standard of comparison as a reference; and c) the evaluation process of satisfaction
implies the intervention of at least two stimuli; a result and a reference or standard of
comparison. Satisfaction is related to size and direction of “non-confirmatory:
experience defined by the difference between initial expectations of the individual and
the actual result derived.” Expectations are the needs or desires of the consumer,
based on what the consumer feels should be delivered before receiving it. Perceptions
are the beliefs of the consumer relative to the service received. The consumer’s opinion
of satisfaction or dissatisfaction depends on how the consumer perceives the actual
result obtained relative to what was expected (pp. 533-546). Much of the attention given
to service quality is motivated by the premise that it will increase customer satisfaction
and ultimately lead to better financial performance (Babikas et al.,2004). The quality of
products and services has also been linked to external indicators of customer
satisfaction such as complaints, warranty, litigation and market -share (Ahire & Dreyfus,
2000). Satisfied customers often lead to loyal customers who continuously repurchase
the product or service. Depending upon the industry, Fornell (1992) contends that not all
companies are equally affected by customer satisfaction. However, all organizations are
dependent upon repeat purchases that lead to higher profitability (. Empirical evidence
suggests that customer satisfaction mediates the relationship between service quality
and firm performance. Uelschy, Laroch, Tamilia and Yannopoulos (2004) claim that
measures of service quality and satisfaction can be nonequivalent across cultures. In
other words, a measure that works well in the United States may not perform properly
overseas. Across cultures, the translation, interpretation and meaning of particular
terms can introduce response bias. Thus, due to cultural differences, one cannot
assume that a citizen of one country will perceive quality in the same way as one from a
different country. Because beliefs are a part of culture, two individuals can experience
identical consumption and register differing levels of satisfaction based on differing
49
schematic reference points they bring to a situation . Casey (2001), for example, argues
that tippinghas important consequences for the relationships among managers, front-
line service workers, and customers, and for relations among co-workers. She also
suggests that tipping may influence employee commitment, teamwork, and motivation,
and claims that while tipping allows low labor costs, it may undermine the relationship
between managers and staff because the customer becomes the one who provides
monetary compensation and feedback to the servers. Brady and Cronin (2001) find
through qualitative and empirical research that the service quality construct conforms to
the structure of a third-order factor model that ties service quality perceptions to distinct
and actionable dimensions: outcome, interaction, and environmental quality. Each
dimension has three sub-dimensions that define the basis of service quality perceptions.
For each of these sub-dimensions to contribute to improved service quality perceptions,
the quality received by consumers must be perceived to be reliable, responsive, and
empathetic. Li, Tan and Xie (2003) suggest that a company's ability to achieve excellent
service quality depends on the choice of service attributes, their desired levels, and the
prioritization of service attributes. They investigate the asymmetric and nonlinear nature
of the relationship between service quality gaps and overall service quality (quality that
is worse than expected hurts more than quality that is better than expected helps), and
develop a model that applies utility theory to the prioritization of service attributes.
Surprenant and Solomon (1987) stated that service encounters are human interactions.
They suggested that customers and service providers have roles to play during and
possibly after service encounters and that these roles are based on “interpersonal
interactions” between organizations and customers. Service quality in all service
encounters is thus intrinsically affected by the perspectives of both the service provider
and the service receiver. Similarly, Czepiel (1990) concluded that research on service
quality must always include the perspectives of both the provider and the receiver.
However, most research on the service quality construct has been restricted to one
perspective: that of the service receiver (Parasuraman et al., 1988; Guerrier and Deery,
1998). A few have applied dual perspectives and considered interactive features of
service quality in service encounters (Tam and Wong, 2001; Chow-Chua and Komaran,
2002; Dedeke, 2003; Svensson, 2004, 2006). Beatson et al. (2008) found that
50
perceived employee satisfaction, perceived employee loyalty, and perceived employee
commitment had a sizable impact on perceived product quality and on perceived
service quality. According to Bettencourt and Gwinner (1996) FLE has the opportunity to
tailor in real-time not only the services the firm offers, but also the way in which those
services are delivered. Customer actions, reactions and other characteristics can have
a profound influence on the actions and mannerisms of front-line service personnel
(Solomon et al., 1985; Matzler et al., 2004). Customers largely establish their
impressions of the organization’s level of service provision based on their encounters
with FLE. Therefore employees involved in the delivery of front-line services can provide
valuable information for improving service. FLE are knowledgeable about the strengths
and weaknesses of the service through their contact with customers and this is an
important form of feedback that can be used by organizations in decision-making to
better serve customers. Research has established a positive correlation between the
attitudes of employees and those of customers, including employee and customer
perceptions of service quality (Schneider and Bowen, 1985). Brysland and Curry (2001)
stated that the literature clearly supported the use of SERVQUAL in the public sector.
According to Gowan et al. (2001), service provision is more complex in the public sector
because it is not simply a matter of meeting expressed needs, but of finding out
unexpressed needs, setting priorities, allocating resources and publicly justifying and
accounting for what has been done. In addition, Caron and Giauque (2006) pointed out
that public sector employees are currently confronted with new professional challenges
arising from the introduction of new principles and tools inspired by the shift to new
public management. Anderson (1995) also measured the quality of service provided by
a public university health clinic. Using 15 statements representing the five-dimensions of
SERVQUAL (Parasuraman et al., 1988), she assessed the quality of service provided
by the clinic at the University of Houston Health Center. Patients were found to be
generally dissatisfied with the five dimensions of SERVQUAL. The highest
dissatisfaction was felt with assurance. On the other hand, tangibles and A empathy
exhibited the lowest level of dissatisfaction. Using the SERVQUAL approach,
Wisniewski (2001) carried out a study to assess customer satisfaction within the public
sector across a range of Scottish Councils services. Agus et al. (2007) carried out a
51
research to identify management and customer perceptions of service quality practices
in the Malaysian Public sector. It is important to note that whereas the SERVQUAL
model focused on identifying “gaps” between expectations and actual delivery, their
model focused only on perceptions of actual service delivery. Bitner et al. (1994) and
Schneider and Bowen (1985) where both employees and customers have common
perceptions regarding the level of service quality delivered in an organization. This
study was therefore able to highlight how important it is for an organization, be it a
public sector organization, to conduct a survey and consider the opinions of its
customers and its employees in identifying areas for service quality improvements. It is
therefore very important for them to know how customers evaluate service quality and
what they can do to measure and improve service quality. Therefore, to exceed
customer expectations, it is necessary for even a public sector organization to
continually improve the quality of service provided to its customers. Lewis (1991)
proposed that service quality is a measure of how well the service delivered meets
customers' expectations of a product and service. Service quality received a significant
amount of attention by both researchers and practitioners. It has been defined as a form
of an attitude related but not exactly satisfaction that results from the comparison of
expected service levels with perceived performance (Bolton & Drew, 1992; Parasurman
et al., 1988; Cronin & Taylor, 1992). Our article is structured as follows. Firstly, we will
differentiate conceptually between retailer attributes (particularly with regard to service
by a retailer) and customer-based retail brand equity. Moreover, based on a brief review
of the literature, we will offer an outline of the main constructs. Subsequently, we will
focus on the relationship between the perception of retailer attributes and retail brand
equity by formulating a set of hypotheses. Thirdly, we will discuss the results of an
intersectoral empirical study that was undertaken using multiple-group structural
equation modelling to test our research hypotheses. In conclusion, we will address the
research as well as the managerial implications of our findings on the relationship
between service quality and customer-based retail brand equity compared with the
other retailer attributes. . They can perform these functions well, to the organization’s
advantage, or poorly, to the organization’s detriment. According to Bettencourt and
52
Gwinner (1996) FLE has the opportunity to tailorin real-time not only the services the
firm offers, but also the way in which those services are delivered.
Customer actions, reactions and other characteristics can have a profound influence on
the actions and mannerisms of front-line service personnel (Solomon et al., 1985;
Matzler et al., 2004). Customers largely establish their impressions of the organization’s
level of service provision based on their encounters with FLE. Therefore employees
involved in the delivery of front-line services can provide valuable information for
improving service. FLE are knowledgeable about the strengths and weaknesses of the
service through their contact with customers and this is an important form of feedback
that can be used by organizations in decision-making to better serve customers.
Research has established a positive correlation between the attitudes of employees and
those of customers, including employee and customer perceptions of service quality
(Schneider and Bowen, 1985) In other words, customers enter a
consumption .experience expecting a certain level of service and during this
consumption period they experience actual service performance. The consumer’s
subjective evaluation of how well (or poorly) that actual performance compares to
expected performance results in the perceived service quality (Woodruff et al., 1983;
Parasurman et al., 1988; Cronin & Taylor, 1992). There is considerable evidence that
service quality functions as an antecedent to customer satisfaction (Reidenbach &
Sandifer- Smallwood, 1990; Cronin & Taylor, 1992; Reichheld & Sasser, 1990).
Traditionally, service quality has been defined as the difference between customer
expectations of service to be received and perceptions of the service actually received.
Service quality received a significant amount of attention by both researchers and
practitioners. It has been defined as a form of an attitude related but not exactly
satisfaction that results from the comparison of expected service levels with perceived
performance. In other words, customers enter a consumption experience expecting a
certain level of service and during this consumption period they experience actual
service performance. The consumer’s subjective evaluation of how well (or poorly) that
actual performance compares to expected performance results in the perceived service
quality. There is considerable evidence that service quality functions as an antecedent
to customer satisfaction. Service based industries are leading many nations. Service is
53
basically the creation of value for the buyer that attracts the buyer to try it and it cannot
be commented until tested (Guo, 2002; Awan, et al., 2008; Ham, et al., 2003; Wang,
et al., 2008). Thus to maintain standard in this era of global competition the leaders
are adopting Services Quality management strategies (Abdullah, 2005; Samat, et al.,
2006; Guo, 2002; La and Kandampully, 2004; Farrell, 2008; Sakthivel and Raju, 2006;
Wang, et al., 2008). There are many types of services that are concerned with the
fulfilment of needs of the customer. According to Guo (2002, p.1157) the three main
forms of Service provided are ‘People Processing Service (health care), Possession
Processing Service (perfume) and Information-Based Services (banking)’.Maintaining
Service Quality has been considered as an edge for many organizations. Therefore
Service Quality has been used as an aggressive strategy to overcome the external
pressure (Slater and Narver, 1994; La and Kandampully, 2004; Azmi, et al., 2008;
Legcevic and Strossmayer, 2008). Merrilees, Bill, et al, (March 2007), Retail
Development and activity in transition economies is the core theme. The objective of the
publication is to come with the Estonian situation in Republic of Estonia. It focuses on
retail marketing strategy. Retail service quality, pricing and location, personal services
to retain the customer are the major focus of this publication. Tam J ack ie L .M. ,
(September 2007). The study examines the relationships among customer satisfaction,
service quality and perceived value. This research focuses on the examination of the
variables simultaneously and their relationships with post purchase behaviour. Soyoung
Kim, et al., (2001). This ar ticle gives a structural view regarding the ability of Retail
Service Quality Scale to influence the retail shoppers perceptions of service quality in
discount stores in the U.S and South Korea. Sirohi, Niren, et al., (Summer 1998), focus
on store loyalty intentions of current customers of a food and grocery retailer to
understand the effectiveness of activities designed to retain customers. It also examines
the quality perception, variables associated with the value for money and competitor
attractiveness. The work of Boshoff, Christo, et al., (December 97) is a replication study
which gives an overview about SERVQUAL, the quality of customer service in the area
of retail in South Africa. This research indicates the five basic dimensions and models of
Dabholkar A . et al. (1996). The research of Gounaris, Spiros, et al, (September 2005)
investigatesthe antecedents of perceived service quality in theinternet environment for
54
trust in a retail store. It focuses on the reasons for shopping online. The results indicate
the perceived e-service quality comprised of four keys dimensions. Ful l e r ton, Gordon,
et al., (June 2005), examine the extent to which affective and continuous commitment
serve as mediators of brand satisfaction and loyalty intentions relationship. The study of
Terblanche, N.S, et al, (December 2004) focuses on the in store shopping experience
(ISE) that offers retailers an alternative means of differentiation. It is able to achieve by
providing superior store shopping experience. Diverse retailing environments (Super
markets vs. apparel retailers) by Trocchia, Philip. J. et al., (2003) evaluate the internet
service quality through SERVQUAL. Long, Mary’ et al, (2004) give a multidimensional
measure on online service quality, based on the consumers comments and their
experiences with online retailers. Subhash Mehta C., et al, (2000) explore the
usefulness of SERVPERF, the perceptions component of SERVQUAL in measuring the
service quality of electronic goods retailers. Subashini Kaul, (October 2005) examines
the (RSQS) retail service quality scale developed in U.S. for applicability in Indian
retailing. The data was collected from adult shoppers from large formats apparel stores
in the city of Bangalore for tracking the overall service quality levels over a period of
time. Nor Khalidah Abu, (2004) in his paper produces the service quality dimensions on
various sized grocery retailers in Malaysia. This research is based on the RSQS
developed by Dabhokar A. et al, (1996). It takes into account the retail setting. Mehmet
Arda, (September 2006) highlights the significance of world food retailing and the
significant impact of supermarkets and grocery procedures. M.Dhurup in this paper
presents the results of a study done on super markets. The paper focuses on the
measurement of customer perceptions of super market service quality by using a
national super market in South Africa. The opposite view, that social norms increase
efficiency, is articulated well by Arrow (1971, p. 22), who wrote, “I want, however, to
conclude by calling attention to a less visible form of social action: norms of social
behavior, including ethical and moral codes. I suggest as one possible interpretation
that they are reactions of society to compensate for market failures.” Two paragraphs
below Arrow added, “There is a whole set of customs and norms which might be
similarly interpreted as agreements to improve the efficiency of the economic system (in
the broad sense of satisfaction of individual values) by providing commodities to which
55
the price system is inapplicable.” Several studies tried to examine whether tipping is a
norm that increases socialwelfare. Conlin, Lynn, and O'Donoghue (2003), for example,
study tipping behavior inrestaurants, and conclude that it exhibits elements of efficiency,
but is not fully efficient. Azar (2005a) addresses the question whether tipping was
created to increase social welfare by examining the difference in the characteristics of
various tipped and non tipped occupations. Azar (2005b) addresses a similar question
with a theoretical model that analyzes in what conditions tipping is likely to increase
social welfare. Surprenant and Solomon (1987) stated that service encounters are
human interactions. They suggested that customers and service providers have roles to
play during and possibly after service encounters and that these roles are based on
“interpersonal interactions” between organizations and customers. Service quality in all
service encounters is thus intrinsically affected by the perspectives of both the service
provider and the service receiver. Similarly, Czepiel (1990) concluded that research on
service quality must always include the perspectives of both the provider and the
receiver. However, most research on the service quality construct has been restricted to
one perspective: that of the service receiver (Parasuraman et al., 1988; Guerrier and
Deery, 1998). A few have applied dual perspectives and considered interactive features
of service quality in service encounters (Tam and Wong, 2001; Chow-Chua and
Komaran, 2002; Dedeke, 2003; Svensson, Beatson et al. (2008) found that perceived
employee satisfaction, perceived employee loyalty, and perceived employee
commitment had a sizable impact on perceived product quality and on perceived
service quality. According to Zeithaml and Bitner (1996), contact employees represent
the organization and can directly influence customer satisfaction, they perform the role
of marketers. Whether acknowledged or not, service employees perform marketing
functions. They can perform these functions well, to the organization’s advantage, or
poorly, to the organization’s detriment. According to Bettencourt and Gwinner (1996)
FLE has the opportunity to tailor in real-time not only the services the firm offers, but
also the way in which those services are delivered. Customer actions, reactions and
other characteristics can have a profound influence on the actions and mannerisms of
front-line service personnel (Solomon et al., 1985; Matzler et al., 2004).Customers
largely establish their impressions of the organization’s level of service provision based
56
on their encounters with FLE. Therefore employees involved in the delivery of front-line
services can provide valuable information for improving service. FLE are knowledgeable
about the strengths and weaknesses of the service through their contact with customers
and this is an important form of feedback that can be used by organizations in decision-
making to better serve customers. Research has established a positive correlation
between the attitudes of employees and those of customers, including employee and
customer perceptions of service quality (Schneider and Bowen, 1985).2004, 2006). Lo
& Hui, (2003) presented a paper that deliberately conceptualizes service quality factors
(such as reliability and responsiveness) as being antecedents to customers’ overall
evaluation of service quality, rather than conceptualizing them as dimensions or
components of the construct The results of store image studies and the findings of
perception research (seeSchiffman and Kanuk, 2004; Mowen and Minor, 2001;
Solomon, 2006 for a moredetailed discussion on this topic), also on the basis of
research by Hildebrandt (1988),and by Mazursky and Jacoby (1986), lead us to believe
that a consumer judges a retaileron the basis of certain basic dimensions of perception.
At the same time, however, it is important to note that consumers tend to simplify when
deciding, with the effect that they are unable to judge individual, “objectively” different
properties of an object truly independently of one another, resulting in the consumer
tending rather to base his judgement on key information, for example, as well as in the
occurrence of irradiation effects. We assume that the individual properties correlate with
one another. Marks (1976) pointed out that the individual attributes could not be
regarded in isolation because they do interact with one another in the mind of the
consumer. Since the study by Osman M. Zain & Ismail Rejab (1989) there has been a
large influx of large scale multinational retailers (Rosmimah Mohd. Roslin,2000). The
number of hypermarkets increases tremendously from only 1 in 1995 to 21 in 2002
(Prystay, 2002) and to 30 in 2003 (Moreira, 2003). The growing number of the larger
grocery retailers has been a concern of the Ministry of Domestic Trade and Consumer
Affairs (MDTCA) who felt that hypermarkets are affecting local retailers as they operate
on low margins in a slow growing grocery market. The slow growth of grocery products
in Malaysia happened since the Asian crisis. In 2001, the growth of grocery products is
only 3% (Euromonitor, 2002). In addition, hypermarkets like Tesco, Carrefour, and Giant
57
are creating price war as they continuously cut down prices on daily use essentials
including grocery products (Moreira, 2003).In an effort claimed by MDTCA to protect
small retailers, Guidelines for the Establishment of Hypermarkets were issued (Moreira,
2003). The retail industry has witnessed the high rate (38%) of traditional provision
stores closure from 46,544 in 1992 to 28,659 in 2001 (Prystay, 2002). Another
observable result is the closure of 16 Tops supermarkets in 2000 and another 6 at the
end of 2002 (Ganesan, 2003a). Furthermore, the sales revenue of Ocean supermarkets
in Klang Valley in 2002 reduces by 38% from the previous year due to competition from
hypermarkets (Moreira, 2003). Ghobadian et al. (1994) posit that most of the service
quality definitions fall within the “customer led” category. Juran (1999) elaborates the
definition of customer led quality as “features of products which meet customers’ needs
and thereby provide customer satisfaction.” As service quality relates to meeting
customers’ needs, we will be looking at “perceived service quality” in order to
understand consumers (Arnauld et al., 2002). Grönroos (1984) and Parasuraman et al.,
(1985) looks at perceived quality of service as the difference between customers’
expectation and their perceptions of the actual service received. Other researchers look
at perceived service quality as an attitude. Arnauld et al., (2002) defined perceived
quality “whether in reference to a product or service” as “the consumers’ evaluative
judgment about an entity’s overall excellence or superiority in providing desired
benefits” (p. 327). Hoffman & Bateson (2001) defines service quality as an attitude
“formed by a long-term, overall evaluation of a performance”. Attitude is defined as “a
consumer’s overall, enduring evaluation of a concept or object, such as a person, a
brand, or a service.” (Arnauld et al, 2002) Service quality as “an attitude” is consistent
with the views of Parasuraman et al., (1988), Cronin & Taylor (1992) & Sureshchandar
et al., (2002). Basis of the view is elaborated by the latter: “As perceived service quality
portrays a general, overall appraisal of service i.e. a global value judgment on the
superiority of the overall service, it is viewed as similar to attitude.” (p. 364). However,
Imrie et al. (2002) found that researches utilizing Western samples did not discover the
factors “sincerity”, “generosity”, and “courtesy/politeness” which he found to be critical to
Taiwanese consumers. The interpretation of politeness by Imrie (2002) is similar to the
interpretation of “formality” by Winsted (1999). She found that “formality is a critical
58
service quality factor to Japanese customers. Odekerken-Schröder et al. (2001) in their
research emphasized the importance of inter-personal relationship which refers to “the
opportunity for customers to affiliate with other individuals during the retail encounter”
(Odekerken-Schröder et al., 2001, p. 310). They elaborated the interaction as both the
customer-to-customer and customer-to-service provider social interaction. Previously,
Harris et al. (1995) proved in their study that 48% customers of a retail store interacted
orally with the service personnel while nearly 12% of the customers interact orally with
other customers. Feinburg & de Ruyter (1995) in their cross culture study of service
quality conceptions of retail consumers in United States, Netherlands, and Taiwan
found that although there are similarities of how consumers in one country define
service quality, there are significant differences discovered in the importance placed on
each dimension. The similarities discovered were the inclusion of friendly and
knowledgeable salespeople in the definition of all groups. They also found that
Taiwanese rate highly on the dimensions of polite/friendly sales people and respectful
treatment received in the store, Americans rate highly on merchandise related
dimensions, while Dutch consumers rate highly on personalized service and
knowledgeable sales people. Quality basically maintains equilibrium between the
internal and external environment of an education institution. A system that fulfils the
requirement of the external forces such as customers and at the same time applies to
the internal forces to accommodate them is the true winner (Koslowski, 2006; Abdullah,
2006; Eagle and Brennan, 2007; Russell, 2005; Hill, 1995; Houston, 2008). Thus
fulfilling the requirement of the customer in a creative manner is quality (Voon, 2006;
Samat, et al., 2006; Awan, et al., 2008; Azmi, et al., 2008). The most recent
development on the quality is in the service sector. When it comes to providing service
the customer plays the major role (Reeves and Bednar, 1994; Eagle and Brennan,
2007; Awan, et al., 2008; Rowley, 1997). Koslowski (2006) has narrowed down the
types of quality and applied them specifically to the higher education industry. According
to researcher the types of quality refer to some part of the system. As stated by
Koslowski (2006, p.282-283) the ‘Transcendent quality’ is achieved through specialized
programs offered to the faculty in institution, ‘Manufacturing based quality’ is when the
structure of degree is perfectly aligned to the requirement of the customer, ‘Product
59
based quality’ is focused on the addition of courses in a specialized degree, ‘Value
based quality’ is achieved by providing the appropriate outcome to the customer and
‘User based quality’ is gained by fulfilling the requirements of the customer.Service
based industries are leading many nations. Service is basically the creation of value for
the buyer that attracts the buyer to try it and it cannot be commented until tested (Guo,
2002; Awan, et al., 2008; Ham, et al., 2003; Wang, et al., 2008). Thus to maintain
standard in this era of global competition the leaders are adopting Services Quality
management strategies (Abdullah, 2005; Samat, et al., 2006; Guo, 2002; La and
Kandampully, 2004; Farrell, 2008; Sakthivel and Raju, 2006; Wang, et al., 2008). There
are many types of services that are concerned with the fulfilment of needs of the
customer. According to Guo (2002, p.1157) the three main forms of Service provided
are ‘People Processing Service (health care), Possession Processing Service (perfume)
and Information-Based Services (banking)’. Maintaining Service Quality has been
considered as an edge for many organizations. Therefore Service Quality has been
used as an aggressive strategy to overcome the external pressure (Slater and Narver,
1994; La and Kandampully, 2004; Azmi, et al., 2008; Legcevic and Strossmayer, 2008).
In 1993, Teas developed two models for measuring service quality. Teas was not
convinced with the entire concept of measuring the customer perceived quality with the
gap of perception and expectation as in SERVQUAL. The major emphasis of the
researcher was on the conceptual understanding of Expectation, since the expectation
associated to the services could exceed the actual level of performance of the
company. Therefore the researcher developed Evaluated Performance model (EP) in
order to measures the gap between perceived performance and ideal amount of a
performance to gain consumer satisfaction. Further catering to the expectation, the
researcher concentrated on the prospect created after the experience of the consumer.
Teas (1993) perceived Excellence norm as a result of positive experience of the
customer, this led to the creation of Normed Quality model. NQ measures the Quality
gap between excellence norm and ideal amount of expectations of the consumer. Both
the measurement models are applicable to various industries. However the EP and NQ
measurement model were not applied by other researchers in the literature. Services
unlike tangible products are produced and consumed at the same time in the presence
60
of the customer and the service producer. The presence of the human element during
the service delivery process greatly increases the probability of error on the part of
employees and customers. This error is due to intangible behavioural processes that
cannot be easily monitored or controlled (Bowen, 1986). However, although a
substantial amount of service quality research has focused on service customers’
perceived service quality (Parasuraman et al., 1988; Carman, 1990; Parasuraman et al.,
1991; Babakus and Boller, 1992; Cronin and Taylor, 1992; Babakus and Mangold,
1992), relatively little attention has been paid to exploring the factors that impact on
service employees’ behavior with regard to delivering service quality. Little is known
about service quality perceptions in India (Jain and Gupta, 2004) because research
focus has primarily been on developed countries (Herbig and Genestre, 1996). Given
the relatively mature markets where the service quality scales have been developed, it
seems unlikely that these measures would be applicable to India without adaptation.
Angur, Nataraajan and Jahera (1999) examined the SERVQUAL in the retail banking
industry and reported a poor fit of the scale to the empirical data. Despite this, several
researchers (Sharma and Mehta, 2004; Bhat, 2005) have used the SERVQUAL scale in
similar settings with no assessment of the psychometric soundness of the scale.
Service quality in retailing is different from any other product/service environment (Finn
and Lamb, 1991; Gagliano and Hathcote, 1994). For this reason, Dabholkar, Thorpe
and Rentz (1996) developed the Retail Service Quality Scale (RSQS) for measuring
retail service quality. The RSQS has a five dimensional structure of which three
dimensions comprise of two subdimensions each. Studies assessing the applicability of
the RSQS have reported encouraging results. Dabholkar, Thorpe and Rentz (1996)
replicated their own study and found all the RSQS dimensions and sub-dimensions to
be valid in the U.S. Mehta, Lalwani and Han (2000) found the RSQS five dimensional
structure appropriate for measuring the service quality perceptions of supermarket
consumers in Singapore. Kim and Jin (2001) report the RSQS a useful scale for
measuring service quality of discount stores across two different cultural contexts of
U.S. and South Korea, though they reported empirical support for a four and not a five
dimensional structure. Boshoff and Terblanche (1997), in a replication of the Dabholkar,
Thorpe and Rentz (1996) study, report highly encouraging results for the RSQS
61
applicability in the context of department stores, specialty stores and hypermarkets in
South Africa. Since the study by Osman M. Zain & Ismail Rejab (1989) there has been a
large influx of large scale multinational retailers (Rosmimah Mohd. Roslin, 2000). The
number of hypermarkets increases tremendously from only 1 in 1995 to 21 in 2002
(Prystay, 2002) and to 30 in 2003 (Moreira, 2003). The growing number of the larger
grocery retailers has been a concern of the Ministry of Domestic Trade and Consumer
Affairs (MDTCA) who felt that hypermarkets are affecting local retailers as they operate
on low margins in a slow growing grocery market. The slow growth of grocery products
in Malaysia happened since the Asian crisis. In 2001, the growth of grocery products is
only 3% (Euromonitor, 2002). In addition, hypermarkets like Tesco, Carrefour, and Giant
are creating price war as they continuously cut down prices on daily use essentials
including grocery products (Moreira, 2003). Feinburg, and de Ruyter (1995) supported
this idea as they postulate that the dimensions are instruments for measuring perceived
service quality. They also posit that consumer-perceived service quality is usually seen
as a multi-dimensional construct. The earliest research on service quality dimensions
was done by Grönroos (1984). He found that the perceived quality of a service is
affected by the experience that the consumer went through for a service. Therefore, he
encapsulated the perceived quality of a given service as the outcome of an evaluation
process; a comparison between the consumer expectations of the service with his
perceptions of the service he has received. He also pointed that expectation is influence
by traditions, ideology, word-of-mouth communication, and previous experience with the
service and the consumer’s perception of the service itself determines his perceived
service. However, he did not discuss the relationship between perception and
expectation and how it influences service quality. Grönroos (1984) found that “service
quality” comprises of three global dimensions. The first dimension is the technical
quality. This dimension refers to the outcome or what is delivered or what the customer
gets from the service. For a retail store, technical quality may include the range of
products offered and the availability of parking space. The next dimension is the
functional quality which refers to the manner in which the service is delivered or how it is
delivered. Customers of a retail store will measure whether the salespeople are friendly
or whether products are easily returnable. Finally, the last dimension is the corporate
62
image. The store’s image is built by mainly both technical and functional quality and to
some extent other factors like the traditional marketing activities. The most popular
service quality model in the 1990s (Robinson, 1999) is the model by Parasuraman et
al., (1985). Their model supported Grönroos’ findings on as the models are based on
these three underlying themes: “1) Service quality is more difficult for the consumer to
evaluate than goods quality; 2) Service quality perceptions result from a comparison of
consumer expectations with actual service performance; 3) Quality expectations are not
made solely on the outcome of the service; they also involve evaluations of the process
of the service” (Parasuraman et al.,1985, p. 42) Unlike Grönroos (1984) who used
global measure of service quality, Parasuraman et al. (1985) identified 97 items or
criteria in measuring service quality. They argued that consumers used similar criteria
irrespective of the type of service in measuring service quality. They then group these
criteria into 10 key categories which they labeled as “service quality determinants” (p.
48). The determinants are reliability, responsiveness, competence, access, courtesy,
communication, credibility, security, understanding/knowing the customer, and
tangibles. Later in another research (Parasuraman et al., 1988), they refined the
dimensions as shown in Table 1 into only five dimensions - tangibles, reliability,
responsiveness, assurance, and empathy. Little is known about service quality
perceptions in India (Jain and Gupta, 2004) because research
focus has primarily been on developed countries (Herbig and Genestre, 1996). Given
the relatively mature markets where the service quality scales have been developed, it
seems unlikely that these measures would be applicable to India without adaptation.
Angur, Nataraajan and Jahera (1999) examined the SERVQUAL in the retail banking
industry and reported a poor fit of the scale to the empirical data. Despite this, several
researchers (Sharma and Mehta, 2004; Bhat, 2005) have used the SERVQUAL scale in
similar settings with no assessment of the psychometric soundness of the scale.
Service quality in retailing is different from any other product/service environment (Finn
and Lamb, 1991; Gagliano and Hathcote, 1994). For this reason, Dabholkar, Thorpe
and Rentz (1996) developed the Retail Service Quality Scale (RSQS) for measuring
retail service quality. The RSQS has a five dimensional structure of which three
dimensions comprise of two subdimensions each. Studies assessing the applicability of
63
the RSQS have reported encouraging results. Dabholkar, Thorpe and Rentz (1996)
replicated their own study and found all the RSQS dimensions and sub-dimensions to
be valid in the U.S. Mehta, Lalwani and Han (2000) found the RSQS five dimensional
structure appropriate for measuring the service quality perceptions of supermarket
consumers in Singapore. Kim and Jin (2001) report the RSQS a useful scale for
measuring service quality of discount stores across two different cultural contexts of
U.S. and South Korea, though they reported empirical support for a four and not a five
dimensional structure. Boshoff and Terblanche (1997), in a replication of the Dabholkar,
Thorpe and Rent (1996) study, report highly encouraging results for the RSQS
applicability in the context of department stores, specialty stores and hypermarkets in
South Africa. This study evaluates the applicability of the RSQS scale developed by
Dabholkar, Thorpe and Rentz (1996) for measuring service quality in the Indian
specialty apparel store context. If the RSQS is found to be valid and reliable it will be the
first such instrument available to Indian retailers. If not, then researchers and retailers
alike would be forewarned about using an unreliable scale for measuring retail service
quality in India. Literature on customer satisfaction is voluminous and spans several
areas such as marketing, management and accounting. For example, numerous papers
use the ACSI (American Customer Satisfaction Index) to study customer satisfaction at
the company, industry and macroeconomic levels. For the purposes of our paper, we
focus only on customer satisfaction studies that are immediately related to our work in
retailing and do not survey the literature that studies the design of satisfaction survey
instruments, because in this work we had no control over survey design. The basic
tenet of this research stream is that higher service quality improves customer
satisfaction, resulting in better financial performance, although the mechanisms by
which this improvement happens vary. Iacobucci et al. (1994, 1995) provide precise
definitions of service quality versus customer satisfaction. They contend that service
quality should not be confused with customer satisfaction, but that satisfaction is a
positive outcome of providing good service. Ittner and Larcker (1998) provide empirical
evidence at the customer, business-unit and firm- level that various measures of
financial performance (including revenue, revenue change, margins, return on sales,
market value of equity and current earnings) are positively associated with customer
64
satisfaction. However, in the retail industry they find a negative relationship between
satisfaction and profitability which may be because benefits from increased satisfaction
can be exceeded by the incremental cost in retail. Sulek et al. (1995) find that customer
satisfaction positively affects sales per labor hour at a chain of 46 retail stores.
Anderson et al. (2004) find a positive association between customer satisfaction at the
company level and Tobin’s q (a long-run measure of financial performance) for
department stores and supermarkets. Babakus et al. (2004) link customer satisfaction to
product and service quality within retail stores and find that product quality has a 6
significant impact on store-level profits. To summarize, research on customer
satisfaction views employees as facilitators of the sales process who are critical to
improving the conversion ratio, by providing information to the customers on prices,
brands, and product features and by helping customers to navigate store aisles, finding
the product and even cross-selling other products. The unique feature of the retail store
execution problem is that it combines the factory and the sales components, but this
stream of literature focuses only on the latter. Perhaps the closest to retailing are the
streams of literatures studying customer satisfaction, operational failures and
performance in the airline and healthcare industry, because these industries too
combine factory and sales components of execution. Studies of execution in the
healthcare industry focused on operational failures in the execution process (Tucker
2004) as well as on learning through these failures (Tucker and Edmondson 2003). Ren
and Wang (2006a) empirically link process consistency and service quality while Ren
and Wang (2006b) further show how service quality affects volume at US hospitals.
Using data on customer complaints caused by operational failures in the airline industry,
Lapre and Tsikriktsis (2006) find that customer dissatisfaction follows a U-shaped
function of operating experience: first dissatisfaction decreases with experience
because airlines learn but then dissatisfaction increases because customers increase
their expectations of service. Tsikriktsis (2006) shows that the relationship between
operational performance and profitability depends upon a company’s operating model;
“focused” airlines show a link between late arrivals and profitability, whereas full service
airlines do not. Moreover, capacity utilization is a stronger driver of profitability for full-
service airlines than for focused airlines. Anderson et al. (2006) find that drivers of
65
customer satisfaction are affected by customer attributions of blame for service failures:
namely, customer-employee interactions are less important when the customer
attributes blame to the service provider. Retailing is the most dominant business in
India. Though, various types of retail formats have existed in our country, food retailing
plays a vital role. In this current scenario the concentration of the researchers,
academicians and retail managers were diver ted and expanded into scrutinizing the
food retailing business. This is possible through the quality of services provided by the
food retailers to each and every individual in the society. The quality of services
provided by food retailers SCMS Journal of Indian Management, July - September,
2008. 30A Quarterly Journal Published by SCMS-COCHIN can be assessed by the
pioneering work done by the experts in retail marketing. The results indicate the
perceived e-service quality comprised of four keys dimensions. Ful l e r ton, Gordon, et
al., (June 2005), examine the extent to which affective and continuous commitment
serve as mediators of brand satisfaction and loyalty intentions relationship. The study of
Terblanche, N.S,et al, (December 2004) focuses on the in store shopping experience
(ISE) that offers retailers an alternative means of differentiation. It is able to achieve by
providing superior store shopping experience. Diverse retailing environments (Super
markets vs. apparel retailers) by Trocchia, Philip. J. et al., (2003) evaluate the internet
service quality through SERVQUAL. Long, Mary ’ et al, (2004) give a multidimensional
measure on online service quality, based on the consumers comments and their
experiences with online retailers. Subhash Mehta C., et al, (2000) explore the
usefulness of SERVPERF, the perceptions component of SERVQUAL in measuring the
service quality of electronic goods retailers. Subashini Kaul, (October 2005) examines
the (RSQS) retail service quality scale developed in U.S. for applicability in Indian
retailing. The data was collected from adult shoppers from large formats apparel stores
in the city of Bangalore for tracking the overall service quality levels over a period of
time. Nor Khalidah Abu, (2004) in his paper produces the service quality dimensions on
various sized grocery retailers in Malaysia. This research is based on the RSQS
developed by Dabhokar A. et al, (1996). It takes into account the retail setting. In this
article the authors applied the SERVQUAL instrument proposed by Dabholkar A. et al,
(1996) to evaluate the SCMS Journal of Indian Management, July - September, 2008.
66
40 A Quarterly Journal Published by SCMS-COCHIN retail service quality of food
retailers and validation of the instrument was also done for the food retailers located in
Chennai City setup. The evolution of service quality of retailers purely depends on the
scrutinisation of the five factors namely physical aspects, reliability, personal interaction,
problem solving and policy. Little is known about service quality perceptions in India
(Jain and Gupta, 2004) because research focus has primarily been on developed
countries (Herbig and Genestre, 1996). Given the relatively mature markets where the
service quality scales have been developed, it seems unlikely that these measures
would be applicable to India without adaptation. Angur, Nataraajan and Jahera (1999)
examined the SERVQUAL in the retail banking industry and reported a poor fit of the
scale to the empirical data. Despite this, several researchers (Sharma and Mehta, 2004;
Bhat,2005) have used the SERVQUAL scale in similar settings with no assessment of
the psychometric soundness of the scale. Only a few academic studies
have conducted a thorough investigation of the retail marketing mix with the aim of
comparing the specific attributes in terms of their relevance in building a strong retail
brand (Kent, 2003; Miranda et al., 2005). Thus, we look at the findings of store image
research without including a discussion of the terminology because of the “long history
of changing conceptualization” (Hartman and Spiro, 2005, p. 1113)
Service quality in retailing is different from any other product/service environment (Finn
and Lamb, 1991; Gagliano and Hathcote, 1994). For this reason, Dabholkar, Thorpe
and Rentz (1996) developed the Retail Service Quality Scale (RSQS) for measuring
retail service quality. The RSQS has a five dimensional structure of which three
dimensions comprise of two subdimensions each. Studies assessing the applicability of
the RSQS have reported encouraging results. Dabholkar, Thorpe and Rentz (1996)
replicated their own study and found all the RSQS dimensions and sub-dimensions to
be valid in the U.S. Mehta, Lalwani and Han (2000) found the RSQS five dimensional
structure appropriate for measuring the service quality perceptions of supermarket
consumers in Singapore. Kim and Jin (2001) report the RSQS a useful scale for
measuring service quality of discount stores across two different cultural contexts of
U.S. and South Korea, though they reported empirical support for a four and not a five
dimensional structure. Boshoff and Terblanche (1997), in a replication of the Dabholkar,
67
Thorpe and Rentz(1996) study, report highly encouraging results for the RSQS
applicability in the context of department stores, specialty stores and hypermarkets in
South Africa. This study evaluates the applicability of the RSQS scale developed by
Dabholkar, Thorpe and Rentz (1996) for measuring service quality in the Indian
specialty apparel store context. If the RSQS is found to be valid and reliable it will be the
first such instrument available to Indian retailers. If not, then researchers and retailers
alike would be forewarned about using an unreliable scale for measuring retail service
quality in India. There are several findings suggesting that, from a retailer’s perspective,
serviceelements provided by appropriate and competent salespersons certainly are a
critical success factor (e.g. Babin et al., 1999). It was found that perceptions of service
quality during a service encounter influenced consumers’ willingness to buy, more so
than perceptions of product quality did (Sweeney et al., 1997). Thus, employees’
competence and abilities are not the only important factors (Wang and Netemeyer,
2004), but also the employee’s friendliness and general presentation (Schneider and
Bowen, 1999; Shao et al., 2004) play a particularly central role. Especially against a
background of strongprice orientation by some retailers and the increasing homogeneity
of products and assortments, service quality is a very promising means of creating a
distinctive retailer brand, not only for speciality retailers. Thus, regardless of price, a
retailer should avoid poor service levels for any service activity (Darian et al., 2005). In
general, service is classified in a number of different ways in retailing, however we tend
to refer here to a very clear and simple set of service activity categories. Gagliano and
Hathcote (1994) divide service in retailing into store service (e.g. returns/exchanges,
after sales service) and sales service (helpfulness, friendliness,employees’
competence). This classification is comparable to that used by Gro¨nroos (1984). For
the service industry in general, he divided service quality into two categories: technical
quality, primarily focused on what consumers actually receive from the service
department, and functional quality, focusing on the process of rendering service. Other
studies, building on the work of Parasuraman et al. (1985, 1988), have tried to develop
a model of service quality specifically rooted in the retail sector (Carman, 1990;
Dabholkar et al., 1996; Mehta et al., 2000; Zhao et al., 2002). This model was examined
from a critical viewpoint (e.g. Carman, 1990; Cronin and Taylor, 1992; Teas, 1993) and
68
applied many times in very different sectors, even hospitals, for example (Babakus and
Mangold, 1989). This is a very extensive model with widely defined dimensions:
physical aspects, reliability, personal interaction, problem solving, and policy. Li Fei, Li
Xiang, Mi Bu & Wang Gao (2010) have studied the positioning points of Chinese
supermarkets and concluded that they have unique positioning points and can select
any one of these positioning points in the form of product, price or service. Skallerud &
Grønhaug (2010)have investigated Chinese food supermarket positioning strategies
and found some importantfactors related to the nature of the food supply and demand
relationship which could be influenced by the positioning strategies of supermarkets.
Jayant Anand (2009) has evaluated the reason behind increasing number of
supermarkets in developing countries and revealed that both large and small retailers
can survive profitably by segregating their markets on the basis of income groups and
their grouping of products. Studies conducted by Ganguli, Shirshendu and Kumar, V
(2008) have found out the important parameters of customer loyalty and satisfaction for
the Indian retail supermarket customer.Attempts have been made to understand the
impact of those parameters on loyalty and satisfaction of the consumer. Suryadarma
(2007) had found out in its survey the effect of supermarkets on other traditional
markets. The survey revealed that supermarkets are not the major cause of decline
amongtraditional market and it was found there is an immediate need to improve the
infrastructure and adopt better marketing practices so as to ensure the survival of these
traditional markets. Nguyen, Barrett & D. Nguyen (2007) had explored the supermarket
attributes (SMA) and impact of hedonic shopping motivations (HSM) on shopper loyalty
(SLO). Results indicated that both these parameters had positive effects on customer
loyalty and supermarket managers should concentrate their positioning strategies not
only on the serviceable dimension but also on theFar East Research Centre Hong Kong
hedonic motivations especially for older and higher income segments of customers to
stimulate customer loyalty. AC Nielsen (2007) undertook a survey in Jakarta and in
suburban cities of Bandung and Cirebon which concentrated on buying behaviour of the
customer in supermarkets and in traditional markets. The survey revealed that
penetration of grocery vending has occurred much more rapidly in ready-made foods
and in household and personal care products, for which supermarkets achieve a cost
69
benefit that result from huge economies of scale due to centralized system of supply
and distribution. These benefits are passed on to consumers in the form of savings thus
pulling them towards the channel. Progress of supermarkets has been relatively slow
due to procurement challenges, price, buying behaviour and perceptions regarding the
freshness of product. Again customers still prefer to buy their food items mainly from
local vegetable vendors that give them the advantage of low prices and personalised
services. Thomas Reardon and Ashok Gulati (2002) has stated that the increase of
supermarkets and their implications in other developed countries has been learning
experience for India which has led to this major structural change in retailing. India can
definitely expand and flourish with these large retail stores but should build its own
model to suit the requirements of all each section society. There should be proper
integration and culmination of farmers, wholesalers and retailers so as to make this
change successful. Research conducted by Reardon and Berdegué (2002) has found
that the emergence of supermarkets is a kind of innovation in developing countries.
Their expansion is very rapid. Supermarkets are leading players in most of the agrarian
economy of Latin America and the share of retailing in these countries have increased
from having moved from 10-20 percent in 1990 to 50-60 per cent in 2000’. The
contribution of supermarkets in the retail food sector in these countries is quite of similar
pattern to those in developed countries.
Here thedimensions personal interaction, problem solving and policy are comparable in
terms of content with those of Gagliano and Hathcote (1994). In principle, the physical
aspects dimension is considered as store design, and reliability is interpreted more as a
dimension that is not dependent on customer service. Dabholkar et al. (1996) believe
that their instrument is able to serve as a diagnostic tool for retailers to determine which
service areas need improvement. As this detailed, intensive and isolated review of
service quality is not the purpose of the present study, the following refers more to the
classifications used by Gagliano and Hathcote, while we are aware that store design
can also be considered a service instrument in the broader sense, but which is identified
as a separate field. Merrilees et al. show in their model that personal service has even
more influence on brand attitude and customer loyalty than price. Furthermore, Siu and
Chow (2003) show that, in addition to customer service in its narrower sense, the store
70
design (physical aspects of the store) is also a salient element in determining customer
satisfaction and future consumption behaviour. In Malhotra’s (1983) threshold model of
store choice, service quality is one of the five salient characteristics identified, along
with variety and selection, acceptable prices, convenience of location, and physical
facilities. Rinne and Swinyard (1995) or Mazursky and Jacoby (1986) also illustrate in
their study that the importance of the store attributes differ. As already demonstrated in
the analysis of service, the literature also contains
analyses relating to the other retailer attributes that illustrate the importance of individual
attributes, usually considered in isolation and without making any comparisons (e.g.
price: Binkley and Bejnarowicz, 2003; assortment: Amine and Cadenat, 2003;
advertising: Rajiv et al., 2002; store design: Turley and Chebat, 2002). The issue here is
how do retailer attributes differ in terms of their degree of importance? Since the present
paper focuses on a comparison relating to the service provided by a retailer and not
particularly to the other retailer attributes, the following hypothesis is presented non-
specifically.
71
Research Methodology
Data Collection Methodology:
The primary data are those, which are collected afresh and for first time and thus
happen to be original in character.
The secondary are those which have been collected by someone else and which have
already been passed through statistical process.
Data has been collected by the researcher by Primary sources such as questionnaire
and personnel interview. It included 11 questions and 40 customers were given the
questionnaire and response was taken from them. Charts and graphs will be used for
presentation of data for easy understanding and interpretation.
Data Collection Instruments:
1. Questionnaires
2. Personal Interviews.
Designing the Questionnaire:
While designing the Questionnaires certain things were kept in mind such as simplicity,
length and clarity.
Personal Interviews
Personal interview is mostly commonly used method of data collection. Two purposive
communications between interviewer (researcher) and the respondent (subject) aimed
at obtaining and recording information pertinent to the subject matter of study. The
interviewer resents oral, verbal and written stimuli and receives oral resonances.
About the Survey:
Survey Title: “COMPARATIVE ANALYSIS OF SERVICE QUALITY OF BIG BAZAAR
AND NATIONAL HANDLOOM”.
72
Sampling Method: Convenience Sampling
Sample Size: 40 Respondents.
Duration of Project: Semester Long Project
Response Format:
The questions are a mix of open-ended, close-ended questions, binary, ranking and
multiple choice questions. They have been so inserted into the questionnaire, to get the
appropriate response for a particular situation.
73
Objective of the study:-
To analyze the basic concept and history of the retail store.
To know what is service quality provided by the retail store
How to attract the customer towards their products.
To analyze the awareness of the retail store regarding the response of the
customer.
To analyze step what step should be taken regarding the regarding of the
customer.
To analyze step what should be taken in crisis.
To generate the suggestion, for the information providing extra quality of
services.
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Scope of the Study:-
The scope of the study will be specifically measure the services provided by the
National Handloom and Big Bazaar. The study cover how the services quality should be
given to the customer by the retail stores .The study will study in distinguishing the
services provided by them.The study also help in analyzing and comparing the two retail
stores- Big Bazaar and National Handloom.
Big Bazaar is being selected because of following reasons:-
Big Bazaar store mainly attracts middle class and lower-middle class with the
discounted pricing and lucrative offers at different products.
1. Big Bazaar introduces a new sales-campaign - "Sabse Sasta Din" - means "The
Cheapest Day".
2. Big Bazaar comes much closer to their customers and the new ones with
exclusive products and innovative service.
3. In big bazaar customers needs a product at a reasonable price.
National handloom is selected because of following reasons:-
1. National handloom focuses on the traditional products.
2. This retail store is oldest retail in the Jaipur till now.
3. In national handloom wide variety of products is there.
75
Limitations of the study:
1. Time Constraint : Analysis pertaining to project title and the field
survey has to be done in a span of two months. This may limit the
scope of the survey.
2. Biasness: The respondents may give a biased view.
3. Some respondents refuse to co-operate.
4. Some respondents replied half heartedly.
5. Some respondents gave incomplete information.
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Facts and finding
Store is performing well in attracting the customers.
Most of the people who visit to the stores are of age group between 25-45 yrs.
People usually visit the store once or twice a week in a week i.e. in weekends
They have different variety of product in food bazaar and house hold utensils
The main dissatisfaction for the customer is in the billing section and at parking
space.
Discounts and offers are doing well in the store.
Most of the customers who visit stores are having annual income between
Rs.1.5-3 lac.
Inside the store, employee’s interaction is very less with customers.
Location of retail shop is outstanding.
Cleanliness and hygiene maintained in the store is not up to mark.
Retail shop provides value added service like home delivery, alteration, helpline
etc. but very few customers go for it.
Electronic and print media has high reach in consumer and plays a major role in
communication about promotional scheme and offers where as word of mouth
make significant impact in decision making than any other means of
communication.
Customers don’t find brands they expect in Big Bazaar especially in apparels
section.
77
DATA ANALYSIS AND INTERPRETATIONS USING VARIOUS CHARTS AND
GRAPHS
what are the places does the peple prefer to go for the shopping ?
Figure:- graphical presentation of shopping places
SHOPPING
PLACE
Big Bazaar 18
National
Handloom
12
Others 10
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Data collected and analysed that consumer go for which place to make purchase of
goods. In research process it was found that 45% for the Big Bazaar,30% for the
National Handloom and 25% go for the others retail store for purchase.
79
what are the products does the customer go to the retail store to buy
the product?
Figure showing: - Items prefer for the shopping.
Item’s prefer for
shopping %
clothes
1
0 25%
Cosmetics
1
2 30%
Grocery
1
4 35%
Others 4 10%
By the research done we come to conclude which type of shopping is done by the
people. Most of the people go for the grocery shopping. In Big Bazaar grocery products
has variety so the customer are attracted toward it
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How many times does the people go for the shopping in a week?
Figure:- Shows the graphical representation number times people go for shopping.
No. of times shopping in
week
one time 16
Two time 20
Above 4
From the data it is concluded that the most of the people go for the twice a week for
shopping. From the research we come to know that most of the female go for the more
as compare to male.
81
Figure:- how the people are aware for shopping.
Promotional
Activity Percentage
By Ad Films
1
6 40%
By camp
1
4 35%
By friend
reference
1
0 20%
82
what does the service package does the consumer are influence to
buy the product?
Figure: shows the buying behaviour of the people
Purchase
scheme
percenta
ge
no. of the
respondent
Discount
scheme 40% 16
Service
package 60% 24
83
The questionnaires help to know how people are aware about the different types of
schemes.
Favorable demographic and psycho graphic changes relating to India’s consumer class,
international exposure, availability of increasing quality retail space, wider availability of
products and brand communication are some of the factors that are driving the retail in
India. Over the last few years, many international retailers have entered the Indian
market on the strength of rising affluence levels of the young Indian population along
with the heightened awareness of global brands and international shopping experiences
and the increased availability of retail real estate space. Development of India as a
sourcing hub shall further make India as an attractive retail opportunity for the global
retailers
So for analyzing the comparative study of National handloom and Big Bazaar
calculation of Chi- square test is implemented. From the observes data we conclude
that female do more shopping in comparison of male. Age is also the factors which help
to know about the service quality provided by them.
Demographics Responses Total Critical value
Chi - Square
Gender Big Bazaar
National handloom
Others
Female 12 8 5 25 3.84 .66195
Male 6 4 5 15
Total 16 12 10 40
84
Since there no significance results. From above data we can conclude that female go
for the sopping more in compare to male. In case for shooping female show intrest than
female.
The service provided by the Big Bazaar is best as campare to others.
Age Below 24
2 0 2 4 9.49 4.863
Between 26 -35
5 7 2 14
Between 36-45
9 3 6 18
Above 45 2 2 0 4Total 12 18 10 40
Age factor also influence the service quality. As there no significance diffrence.
The between 36- 45 go for shopping the in retail store. As there age group have the
experince of shopping they well know about the service quality. Mostly now days
people are aware of services.
Marital status
Big Bazaar
National Handloom
others Total 3.84 .649
Married 10 7 7 24
Unmarried 8 5 3 16
Total 18 12 10 40
85
Marital status also influences the buying behaviour of the people. Mostly the married
peole go for the shopping. Actually these retail store are famous for grocery. so the
married people are attracted. from th eabove conclusion there is no significance result.
Monthly income
7.82 24.979
Below 10,000
10 6 0 16
Between 10,000 to 15,000
6 4 2 12
Between 15,000 to 20,000
2 0 6 8
Above 20,000
0 2 2 4
Total 18 12 10 40
86
SWOT
SWOT OF BIG BAZAAR
Strength
EDLP [ Every Day Low Pricing]
Experienced marketing team & executive staff.
Strong culture, ethics and values are followed
Emphasis on providing total customer satisfaction
Point of purchase promotion to increase the purchase
Variety of stuff under single roof
Increase sales with the help of healthy competition between different department
Maintains good employer-employee relation
Cost control initiatives that is critical in a retail operations business
Periodical reviews of the various operations have been done on regular basis to
identify the any possible threat and address the same within time .
Weakness:-
Unable to meet store opening targets.
Unavailability of popular brand items with regard to clothing.
Opportunities:-
Population of the country is growing where the scope of market is kept on
increasing for the retail sector.
87
Organized Retail less penetrated in India so it acts as a great opportunity to the
organization for its growth.
Evolving consumer preferences.
Economy is developing as the employment opportunities are increasing and the
income of the people is also increasing which increases life standards of people.
Company has more scope of expansion in two and three tier cities.
Threats:-
Competitors Strategies
Advancement of technology day by day.
Government policies.
Unorganized Retail sector
Foreign direct investment cause more problems in future because of that many
mergers and acquisition are happening in Indian retail sector
SWOT OF NATIONAL HANDLOOM;
Strength
Experienced marketing team & executive staff.
Strong culture, ethics and values are followed
Emphasis on providing total customer satisfaction
Variety of stuff under single roof
Increase sales with the help of healthy competition between different department
Maintains good employer-employee relation
Cost control initiatives that is critical in a retail operations business
Weakness:-
88
old styleof product.
Unavailability of popular brand items with regard to clothing.
Opportunities:-
Organized Retail less penetrated in India so it acts as a great opportunity to the
organization for its growth.
Economy is developing as the employment opportunities are increasing and the
income of the people is also increasing which increases life standards of people.
Company has more scope of expansion in two and three tier cities.
Threats:-
Competitors Strategies
Government policies.
Unorganized Retail sector
Foreign direct investment cause more problems in future because of that many
mergers and acquisition are happening in Indian retail sector
89
Conclusion
Big Bazaar and National Handloom are both mix retail store. But after the research
done we conclude that Big Bazaar is best than National Handloom in providing services
to the customer.
Both offers a wide variety of products of different prices and different qualities
satisfying most of its customers.
Prices and offers in Big Bazaar is more reasonable than the National handloom
have been one of the main attractions and reasons for its popularity. The price
ranges and the products offered are very satisfying to the customers.
Considering the fact that there are huge middle class families in India, Big bazaar
has had a huge impact on the middle class section of India, the prices, variety
and sales strategy has helped in getting the middle income groups getting
attracted towards Big Bazaar.
The store layout and the assortment of goods is not the best at Big Bazaar,
Customers find it hard to find what they require; this leads to dissatisfaction of
customers.
90
Big Bazaar is not acclaimed for high class service. The staffs recruited is not very
well trained and the billing queues take a long time to move, this irritates
customers which makes them visit the store more seldom.
The customer get all kind of products in the Big Bazaar, i.e. they are following
good merchandising mix, but in some section like apparels they have to keep
different brands in order to attract more customer.
Word of mouth publicity played major role in making Big Bazaar so popular
where as media is used to communicate new offers at the store.
Customers are not aware and hence don’t avail value added services provided
by the store. Customers are more satisfied with the merchandising present in the
food bazaar and household utensils section.
91
Recommendation and Suggestion
Customers are becoming price conscious they are having many options in the market
considering the consumer buying behavior the store should take certain definite steps
like retaining customers by giving more quality service to the customers to match their
expectations.
The trend today has been to combine shopping with various offerings for ex… apart
from shopping a customer enjoys food courts, games and many others services which
competitors provide.
Shopping has made people spend not just on their requirements of goods to be bought
but to look on the totality of the experience have a experience of quality service enjoy the
fun zone have a nice time listening to music air temperature etc finally everything should
be in such a way that “ALL UNDER ONE ROOF”
The benefits of this totality offering are that many vendors get to have people patronized
their offerings while the shopping experience i.e.’ being enhanced more business is got
by the stores at the venue. Shopping is no longer a onetime agenda for people. Various
options are opening up.
During the analysis it was found that customers become loyal to few shops or
department stores and visit them often as compared to other. Although it was found all of
92
them keep approximately same kinds of brands and products and the same pleasing
environment. All this in mind we need to differentiate our store from others in the city to
build up our own set of customers. It was found that the major problem faced by the
customers is the crowed at the cash counter. The life of today’s generation has become
very fast. They don’t want to wait in a queue for a longer period. Thus we must provide
better service by speeding up the billing in the cash counters.
One advantage is that there is only one store in the city where as others are the
department stores. So enhance it and make it better to make it different i.e. by having
special attraction like body spa, Gym in the store. There should be a provision for ATMs
in the store too.
The following suggestion can be given to Big Bazaar and National Handloom
Keep brands like Koutons, Cotton County which is well known for offers.
Cleanliness and hygiene should be maintained regularly.
External environment like parking area should be increase as most of customers
face problem of parking specifically during rush hour.
The billing time should be reduced by increasing no. of cash counter keeping in
view customer traffic intensity.
During rush hour, can make provision of less paying counter so customer who
want to purchase single product need not to give up because of long queue.
Store layout needs to be improved.
Proper signage should be there so that customer can locate the products easily.
Value added services have to be improved so that most of customers will avail
those services.
93
Appendix
Questionnaires
Dear Sir/Mam
I am the student of Poornima School of Management doing my live project on the
Comparative study of service quality of BIG BAZAR and NATIONAL HANDLOOM.
Please give your precious time for filling these details.
GENDER
o MALE
o FEMALE
AGE
o ABOVE 25 AND BELOW
o BETWEEN 26 AND 35
o BETWEEN 36 AND 45
o ABOVE 45
94
MARITAL STATUS
o MARRIED
o UNMARRIED
OCCUPATION
o SELF EMPLOMENT
o WAGE EMPLOYMENT
o PROFESSIONAL
o STUDENT
MONTHY INCOME
o BELOW 10,000
o BETWEEN 10,000 TO 15,000
o BETWEEN 15,000 TO 20,000
o ABOVE 20,000
1. Which Shopping place you would like to go?
o Big Bazaar
o National Handloom
o Others
2. How much time do you go for shopping in a week?
o One time
o Two time
95
o Above
3. among them, which you, prefer most?
o Clothes
o Cosmetics
o Grocery
o Others
4. Do you collect any information search before making purchase?
Excellent, Good Average, Below Average.
o Discount scheme
o Service package
5. If you have to purchase a new connection or product in near future, which Brand will
you go for and why?
………………………………………………………………………………………………………
……………………………….................................................................................................
............................................................................................................................................
............................................................................................................................................
....................................................................................................................................
6. Are you aware of various promotional activities being run, if yes then how? Are you
satisfied with these promotional activities?
o By Ad Films
o By Camp
o By Friend reference
96
………………………………………………………………………………………………
………………………………………………………………………………………………
……………………………………………………………………………………………..
7. How will you rate Big Bazaar and National Handloom performance as your
expectation 5 point scale?
Rating Scale Big Bazaar National Handloom
After sale service
Maintenance
Quality of product
Reliability of prices
Attractive promotions
Easy Availability of goods
Ambience
8. Your response for Big bazaar and National Handloom
o Very satisfied
o Satisfy
o Not Satisfied
97
9. What are your suggestion for improving the product quality, service availability and
parts availability?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
…..
Bibliography
Books
1. Retail Management ( A strategic approach) by Barry Esrac & Joel Evios
2. Retail Management by Srivastav
3. Marketing management by Philip kotler.
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5. Marketing services through Quality by Leonard L Berry.
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4. Business world
5. Business standards
6. Times of india
7. Hindustan times of india
8. The Telegraph
9. DNA
Websites
1. www.scribid .com
2. www.google.com
3. www.springlink.com
4. www.oppapers.com
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