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A STUDY ON HUMAN ENCOUNTER IN RETAIL INDUSTRY

A project submitted in partial fulfilment of the requirement for the


internal assessment in the subject Organisational Behaviour
Under the guidance of
MRS Dr Rose Kavitha
MBA, M.Sc, Ph.D

Jyoti Nivas College Autonomous Post Graduation Centre,


Hosur Road, Bangalore 560095

CONTENTS

Serial No
1

Particulars
Abstract
Introduction

Page No
2
3-16

2.1 Human Six Sigma


2.2 Positive Service Encounter
2.3 Human Transactions
2.4 Retail industry

2.5 History of Retail Industry


2.6 Origin Of Retailing Concept
2.7 Literature Review
2.8 Milestones of Retail Outlets
2.9 Classification of Retail Outlets
2.10 How To Improve Retail Store

Research Design

17-18

3.1 Research
3

3.2 Research Design


3.3 Research Methodology
3.4 Method of Study

Analysis and Inference

19-27

4.1 Graphs and Tables

1. ABSTRACT

Positive service encounter - Customers perception of service depends on service encounter. The
subject is approached by a cross-sectional survey on a random sample of 30 customers after their
service encounter with store employees in retail outlets. The findings indicate that responsiveness
and assurance provided by the retail employees are the most important contributors of good service
quality. Although competence is a better tool of customers measurement of service quality, appeal of
the employees in terms of looks and personality are not found to effect customers perception of
service quality. Results suggest that good service quality contributes to development of customer
loyalty through customer satisfaction. The study would give an insight into understanding the
importance of positive service encounter along with the implications of employees behaviour for
customer loyalty in service setting. This study contributes to marketing practice by offering an
understanding to acquire customer loyalty. It also emphasizes the need to understand a positive
service encounter which impacts the service quality.
Human Transaction In the service sector, customers and the employees play an important factor.
It basically focuses on satisfying the consumers needs. It builds brand preferences. The environment
in which the service is assembled & in which the seller & customers interact combined with tangible
commodities that facilitate performance or communication if service.
Human Sigma Human sigma is the process of improving and reducing variability in the
engagement levels of employees and customers. The application human sigma was not chosen
accidently. Human sigma, like its name sake six sigma, is concerned with reducing variability and
improving performance. Human sigma reminds us of an important principle that is often overlooked
inside the bedrooms and offices where business decisions are made. The world was built on
relationships between human beings. Human sigma is essential reading for executives and managers
everywhere. Essential reading for todays global business leaders. Human sigma shows how sales
and service companies can flourish in the new global economy. It reveals a profitability different
method for managing human systems for growth. Blending strategic analysis with hands-on,
practical steps and advice, human sigma changes according to how you view your work, your
employees and your customers.

2. INTRODUCTION

2.1 HUMAN SIX SIGMA


Sigma is the Greek letter representing the standard deviation of a population of data. Six Sigma is a highly
disciplined process that helps accompany focus on developing and delivering near-perfect products and
services. It is a way of knowing where you are and where you could be. Six Sigma at many organizations
simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven
approach and methodology for eliminating defects (driving toward six standard deviations between the mean
and the nearest specification limit) in any process from manufacturing to transactional and from product to
service. The statistical representation of Six Sigma describes quantitatively how a process is performing. To
achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. A Six Sigma
defect is defined as anything outside of customer specifications. A Six Sigma opportunity is then the total
quantity of chances for a defect. The fundamental objective of the Six Sigma methodology is the
implementation of a measurement-based strategy that focuses on process improvement and variation
reduction through the application of Six Sigma improvement projects.
Definition - Six Sigma "Human intervention is common practice in the service sector, which results in a lot
of hidden factors. However, human resources are core to service companies".

Managing Your Human Sigma - Of course quality is the measure that is essential in the success of any
business, however unlike the manufacturing industry, where quality can be measured and asserted with the
help of measureable tangible features, it is quite a task to do the same for the service industry process. The
factory floor becomes the habitat of value creation in the retail industry value is created when an employee
interacts with the customer.
Quality improvement methodologies such as Six Sigma are extremely useful in manufacturing contexts,
where ingredients with predictable properties are repeatedly combined in the same ways, but theyre less
useful when it comes to the employee-customer encounter, with its volatile human dimensions. To address
this problem of fit a quality improvement approach was developed called Human Sigma.
Human Sigma is based on five new rules to bring excellence to the way employees engage and interact with
customers:

RULE #1: E Pluribus Unum. Its important not to think like an economist or an engineer when youre
assessing the employee-customer interaction. Emotions, it turns out, inform both sides judgments and
behaviour even more powerfully than rationality does.

Employee and customer experiences must be

managed together not as separate entities.


RULE #2: Feelings Are Facts. Emotions drive and shape the employee-customer encounter.
RULE #3: Think Globally, Measure and Act Locally. Its possible to arrive at a single measure of
effectiveness for the employee-customer encounter; this measure has a high correlation with financial
performance. The employee-customer encounter must be measured and managed at the local level.
RULE #4: There Is One Number You Need to Know. Employee and customer engagement interact to drive
enhanced financial performance. And this interaction can be quantified and summarized with a single
performance metric.
RULE #5: If You Pray for Potatoes, You Better Grab a Hoe. This means that good intentions alone do not
constitute a plan of action. Sustainable improvement in the employee-customer encounter requires
disciplined local action coupled with a companywide commitment to changing how employees are recruited,
positioned in roles, rewarded and recognized, and importantly, how they are managed.

2.2 POSITIVE SERVICE ENCOUNTER


Positive service encounter is a key indicator to success for service industry. It results in high customer
loyalty and further customer recommendation. A period of time during which a customer directly interacts
with a service. Service encounter also termed as Moment of truth are resultants of interaction between a
company's employees and its customers. Moment of truth (MOT) is the foundation or building block for
customer satisfaction and service quality. Service encounters are first and foremost social exchanges that
lead customers to judge service quality which is by and large based on their evaluation of personal
experiences during the service encounter. Service encounter is a major determinant of customers behavior
towards service. Rust and Oliver (1994) suggest that a single or prolonged set of service encounters leads to
customer satisfaction or dissatisfaction. Organizations understanding of service encounter and customers
perceptions of their employees behavior represent direct determinants of customer satisfaction. Service
quality can be attributed to either tangible like perception of the store or through intangibles like service
encounter.

Relationship between Service Quality and Customer Satisfaction Service quality is the
consumers subjective assessment of service performance. It is the customers overall impression of
the relative inferiority/superiority of the organization and its services. There are two dimensions of
service quality: tangibles and process, the latter having a greater influence on satisfaction and
loyalty. Positive service encounter in retail is the resultant of good service quality which is
reinforced with employees behaviour towards the customers. Good service quality is a pre-emptive
measure by the organizations to beat the competition by attaining customer satisfaction. Customer
satisfaction is a correlate of employee performance and higher quality service. Study states that
customer satisfaction would be more if employees are trained in their dealings with customers.
Thus, there exist a strong relationship between employee attitudes, performance, and customer
satisfaction. Bolton and Drew (1994) studied the relationship between customer satisfaction and
service quality indicating that customer satisfaction depends on pre-existing or contemporaneous
attitudes about service quality. Better the service quality better would be the customer satisfaction.

Relationship between Customer Satisfaction and Customer Loyalty Customer satisfaction is a


fundamental concept in marketing and it pursuit an important goal for businesses. In todays
competitiveness, customer satisfaction is considered to be a success tool. Customers perception
plays a key role in their satisfaction in service industry. Organizations profitability and performance
correlates directly with customer loyalty. Customer loyalty programs help the organizations to
effectively reward their best or potentially important best customers. With increased competition in
retail sector, there has been a shift in focus from attracting customers to retaining customers.
Underlying this view is the belief that it is generally less costly to invest in programs designed to
foster the retention of customers-by enhancing customer satisfaction, providing better value, or
development of improved or expanded services than the costs associated with the acquisition of
new customers. Service quality lends support on the favourable outcomes such as loyalty. It is found
that satisfied customers do not necessarily demonstrate loyalty. Satisfaction influences relative
attitude, repurchase, and recommendation but has no direct effect on store loyalty. Service firms
tries to attain customer satisfaction and loyalty by delivering superior value, an underlying source of
competitive advantage. For service firms the challenge is to identify the critical factors that
determine customer satisfaction and loyalty.

2.3 HUMAN TRANSACTION


We transact with others on a continuum of trust and power. On one end of the spectrum, what we receive
from the transaction cannot be differentiated from a gift. On the other end, it is a product of force and power
applied to another. One relationship relies on human intuition to be profitable; the other is a product of brute
calculation. As individuals in a generic situation we chose to transact on that basis that we expect to yield the
more favourable result. That decision is a product of our personality and experience. When transacting with
other humans with whom we have no prior experience, we proceed according to a characteristic bias. In the
service sector, customers and the employees are important factors. The performance and service quality
depend on customers expectations and how efficiently the firm serves the customers. The service quality
aspects are to enhance customer service interactions and loyalty among customers. The role of employee or
retailer is important in building relationships with customers. The expectations and satisfaction of
customers depends on service personnel's interactions with customers.

2.4 RETAIL INDUSTRY


Retail is a sale of goods and services from individuals or businesses to the end-users. The retail industry is
responsible for the distribution of finished product to the public. The retailer sector comprises of general
retailers (managed by individual/families), departmental stores, speciality stores and discount stores.
Retailing refers to a process where the retailer sells the goods directly to the end-user for his own
consumption in small quantities.

2.5 HISTORY OF RETAIL STORE


The origins of retail are old as trade. Barter system was the oldest form of trade. For centuries, Most of the
goods were sold in market place or by peddlers. Medieval markets were dependent on local sources for
supplying perishable goods because the Journey was too far to travel and inadequate transport facility.
However, customer did travel for specialty items. The peddlers were the ones who provided people with the
basic goods and necessities. Peddler travelled long distances to bring products to locations which were in
short supply. They are early entrepreneurs who saw the opportunity in serving the needs of the consumers
Later retailers opened small shops and stocking of necessary goods.

History of retail industry in India


The retail industry in India is the largest, with an employment of around 8% and contributes over 10% of the
countrys GDP. Retail industry is expected to rise 25% yearly due to strong income growth, challenging
lifestyles and favourable demographic patterns. The retail industry in the year 2016 will be worth US dollar
175-200billion. The retail industry in India is one of the fastest growing industries with expected revenue in
2007 amount to US dollar 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is
expected in the retail industry by growth in consumerism in urban areas, rising incomes, and steep rise in
rural consumption.

Shopping in India has witnessed a revolution with the change in consumer buying behaviour and formatted
with some alterations. It has become modern and can be seen that there are multi-stored malls, huge
shopping centres and sprawling complexes which offer food, shopping and entertainment all under the same
roof. Indian retailers prefer to expand in other regions and to increase the number of their outlets in a city.
In the Indian retailing industry, food is the most dominating sector and it is growing at 12% annually. The
branded food industry is trying to enter the Indian retail industry and convert Indian consumers to branded
food. At present 40% of the Indian grocery basket consists of non-branded items. Retail industry is
progressing well and for this to continue, retailers as well as the Indian government will have to make
combine effort.

2.6 ORIGIN OF RETALING CONCEPT


1900s:
Local culture there were Corner Store, local corner stores which dominated the retail market in this
period. People walked to the store to get the basics goods. Choice was limited in these stores. In some of the
bigger cities, you could find more of these stores, but goods were limited.
1900 1940:
Mass modernization culture - also known as the department store. While the automobile came into
existence in the 1920s, it wasnt used until the 1940s. The automobile were the mainstream. People could go
further and carry more of goods. At the same time, in-home refrigeration allowed shoppers to stock more.
Retail moved from local corner stores to general merchants and department stores.

1970 1990:
8

Consolidation culture Big Box stores: From the 1970s to the 90s, the big box player burst onto the
scene. You saw an explosion of value players, club stores, and category killers. These stores drove a lot of
the smaller local merchants out of business.
1990-2013
Present It is digital culture where E-commerce is been adapted by all consumers. Perhaps we should call
this the Amazon era, but the emergence of E-Commerce has shaken the retail world to its core. In this era
people prefer to buy at malls and buy through internet making their work easier and save time by purchasing
online. Malls are preferred as the have wide variety of products available at one place and hence consumers
save on time by buying products from one place rather than going to many places to buy different products.

2.7 LITERATURE REVIEW


Human Sigma shows how sales and service companies can flourish in the new global economy. It reveals a
profoundly different method for managing human systems for growth. Blending strategic analysis with
hands-on, practical steps and advice, Human Sigma will change how you view your work, your employees,
and your customers forever.
Six Sigma is based mainly on understanding the customer needs and expectation, and responsible approach
to managing, improving and establishing new business, manufacturing and service processes. The Human
Sigma approach combines a proven method for assessing the health of the employee-customer encounter
with a disciplined process for improving it. It is based on five new rules to bring excellence to the way
employees engage and interact with customers. Companies that follow these principles are outpacing their
competition by 26% in gross margin and 85% in sales growth.
Understanding of the six sigma method allows organizations to better support their strategic directions, and
increasing needs for coaching, mentoring, and training. The Six Sigma method is a complex and flexible
system of achieving, maintaining and maximizing the business success. People are the hardest thing to fix.
So Human Sigma was developed as a response to the lack of effectiveness of Six Sigma methodology for
increasing productivity from people.
This literature review first discusses Human Sigma in depth and then covers key aspects of employee
engagement and customer engagement to provide a background of relevant literature on these subjects.
Human Sigma focuses on reducing variability and improving performance.

Every interaction an employee has with a customer represents an opportunity to build or diminish that
customers emotional connection to the organization. Work groups whose employees are positively engaged
have higher levels of productivity and profitability, better safety and attendance records, and higher levels of
retention (Wagner & Harter, 2006).
Not surprisingly, they are also more effective at engaging the customers they serve. Companies that make
employee engagement and customer engagement a priority have a positive shift in the overall business
success.

2.8 MILESTONE OF RETAIL OUTLETS


2013

Food hall, the premium lifestyle food destination was first launched in Pune.

First batch of Future India Fellowship program started with 5 selected fellows across the country.
The fellowship aims to create thought leaders of tomorrow.

Future Group successfully introduced 'Big Bazaar Direct' an assisted shopping concept where
franchises will sell Big Bazaar products through a catalogue on a 'tablet'.

Big Bazaar introduced an exciting occasion for shopping 'April Utsav'.

Future Group officially launched India's largest State of the Art Logistical Distribution Hub at
Nagpur.

Big Bazaar introduced a unique customer membership program 'Big Bazaar Profit Club.'

Food hall, the premium lifestyle food destination launched in New Delhi.

Future Sharp, the Future Group arm that trains and develops the skills of youth opened its new skill
centre in Nashik.

2012

Food hall the premium lifestyle food destination launched its second store in Bengaluru on 4th May
2012.

Big Bazaar redefined the concept of customer service with the launch of the Rajajinagar Family
Centre in Bengaluru with its unique Seva initiative on 24th February 2012.
10

Future Sharp Skills Ltd. launched its first skill centre in Kolkata with a vision to train and provide
sustainable livelihood to five lakh youth of West Bengal by 2022.

Pantaloons became the first retailer to introduce a reality hunt as it set out on a countrywide search
for their next Fresh Face.

Pantaloons launched its first store in Ludhiana, Visakhapatnam and Bilaspur.

Future Group started with Aadhaar Franchise.

Future Supply Chains Express Logistics business became the fastest profitable Express Business in
India.

Keeping pace with the ongoing trends Fashion at Big Bazaar decided to reposition itself as FBB.

Pantaloons joined hands with PAYBACK. Being India's largest and one of the strongest loyalty
programs in Europe, PAYBACK offers were made available to all Pantaloons customers

Big Bazaar launched its home delivery services in Mumbai.

2011

Future Group entered elite gourmet retailing with the launch of its first gourmet food chain Food hall
in Mumbai on 26th May 2011.

Pantaloons launched its revamped Green Card Loyalty Programme.

Pantaloons forayed in Coimbatore, Durgapur and Vizag.

Big Bazaar completed 10 glorious years and came up with a new brand identity and tagline Naye
India ka bazaar.

Big Bazaar opened its first store in Himachal Pradesh on 21st May 2011.

2010

Future Value Retail Limited is formed as a specialized subsidiary to spearhead the group's value
retail business through Big Bazaar, Food Bazaar and other formats.

Pantaloons opened its 50th flagship store in New Delhi on 27th November 2010.

Pantaloons embarked on its "next gen" journey with the launch of its new 'avatar' stores.

Big Bazaar introduced Family Centre in Kolkata on 27th March 2010.

Big Bazaar opened its first store in Jalandar and Amravati.


11

Pantaloons forayed in Allahabad, Bhopal and Aurangabad.

Future Group launched 'The Great Indian Shopping Festival'.

Future Group announced the launch of mobile telephony services under the brand name T24 on the
GSM platform.

2009

Big Bazaar initiated Maha Annasantarpane program at its stores in South India a unique initiative
to offer meals to visitors and support local social organizations.

Big Bazaar captured almost one-third share in food and grocery products sold through modern retail
in India.

Pantaloons Retail celebrates its first Shopping Festival across all retail formats in key Indian cities.

2008

Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the hypermarket
format anywhere in the world.

2007

Big Bazaar launched its 50th store in Kanpur.

Big Bazaar partnered with Futurebazaar.com to launch India's most popular shopping portal.

Big Bazaar initiated the Power of One campaign to help raise funds for the Save The Children India
Fund.

Pantaloons Retail wins the International Retailer of the Year award at US-based National Retail
Federation convention in New York, and Emerging Retailer of the Year award at the World Retail
Congress held in Barcelona.

2006

Big Bazaar launched India's most popular shopping festival: Sabse Sasta Din on 26th January.

Big Bazaar launched Shakti, India's first credit card program tailored for housewives.

Navaras the jewellery store launched within Big Bazaar stores.

Home Town, the home building and improvement products retail chain, is launched along with

consumer durables, Ezone and Furniture Bazaar.


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2005

Big Bazaar launched a unique shopping program: the Big Bazaar Exchange Offer, inviting customers
to exchange household junk

2004

Pantaloons Retail launches India's first seamless mall, Central, in Bangalore.

2003

Big Bazaar entered Tier II cities with the launch of its store in Nagpur

2002

Food Bazaar, the supermarket chain was launched.

2001

Pantaloons Retail launches three Big Bazaar stores within a span of 22 days in Kolkata, Bangalore
and Hyderabad.

1997

Pantaloons Retail enters modern retail with the launch of the first 8000-sq. ft. store Pantaloons in
Kolkata.

1994

The Pantaloons Shop started with exclusive menswear store in a franchisee format which was
launched across the nation. The company starts distribution of branded garments through multi-brand
retail outlets across the nation.

1991

Company's name changed to Pantaloons Fashions (India) Limited

BARE, an Indian denim brand was launched.

2.9 CLASSIFICATION OR TYPES OF RETAIL OUTLETS


Department Stores

13

A department store is a set-up which offers wide range of products to the end-users under one roof. In a
department store, the consumers can get almost all the products they want to shop at one place only.
Department stores also provide them a wide range of options to the consumers and thus help them to fulfil
all their shopping needs.
Merchandise
Are almost similar to department store but the products here are available at a cheaper price. The products in
this include. Electronic Appliances, Apparels, Jewellery, Toiletries, Cosmetics, Footwear, Sportswear, Toys,
Books, Cds, Dvd. Examples - Shoppers Stop, Pantaloons.
Discount Stores
Discount stores also offer a huge range of products to the end-users at a discounted rate. They generally
offer a limited range and quality in certain cases might be a little inferior when compared to the department
stores. Wal-Mart currently operates more than 1300 discount stores in United States. In India Vishal Mega
Mart comes under discount store.
Supermarket
A retail store which generally sells food products and household items, which are properly placed and
arranged in specific departments is called a supermarket. A supermarket is an advanced form of the small
grocery stores and caters to the household needs of the consumer. The various food products (meat,
vegetables, dairy products, juices etc) are properly displayed at their respective departments to attract the
customers and pick any merchandise depending on their choice and needs.
Warehouse Stores
A retail format which sells limited stock in bulk at a discounted rate is called as warehouse store. Warehouse
stores do not bother much about the interiors of the store and the products are not properly displayed.
Mom and Pop Store (also called Kirana Store in India)
Mom and Pop stores are the small stores run by individuals in the nearby locality to cater to daily needs of
the consumers staying in the surroundings. They offer selected items and are not properly organized. The
size of the store would not be very big. They wouldnt offer high-end products. Example: Eggs, Bread,
Stationery, Toys, Cigarettes, Cereals, Pulses, Medicines
Speciality Stores
As the name suggests, Speciality store would specialize in a particular product and would not sell anything
else apart from the specific range. These stores sell only selective items of one particular brand to the
14

consumers and primarily focus on high customer satisfaction.


Example -You will find only Reebok merchandise at Reebok store and nothing else, thus making it a
speciality store. You can never find Adidas shoes at a Reebok outlet.
Malls
Many retail stores operating at one place form a mall. A mall would consist of several retail outlets each
selling their own merchandise but at a common platform.
E-Tailers
Now days the customers have the option of shopping while sitting at their homes. They can place their order
through internet, pay with the help of debit or credit cards and the products are delivered at their doorsteps.
However, there are chances that the products ordered might not reach in the same condition as they were
ordered. This kind of shopping is convenient for those who are busy and who do not have much time to go
to retail outlets. In this kind of shopping; the transportation charges are borne by the consumer itself.
Example - EBAY, Rediff Shopping, Amazon, Flipkart, Big Basket etc.
Dollar Stores
Dollar stores offer selected products at extremely low rates but here the prices are fixed.
Example - 99 Store would offer all its merchandise at Rs 99 only. No further bargaining is entertained.
However the quality of the product is always in doubt at the discount stores.

2.10 HOW TO IMPROVE THE RETAIL STORE


Most every retail shop needs effective strategies for improving sales, marketing, management and
operations. The importance of operating at peak performance is never more important than in a down
economy when retail dollars are tight. Understanding your customers and their shopping habits as well as
trends in the retail marketplace is a key element in building an important foundation on which to construct a
plan for improvement.

Management
Finding the right talent and clearly defining the managers role is key to success in a retail business.
Managers face pressure from a range of responsibilities such as increasing sales, controlling inventory,
hiring, training and managing employees, minimizing payroll, engaging customers and monitoring
15

shrinkage, so working with the manager to establish priorities is critical. In addition to increasing
productivity, the process of setting priorities will give insight into a managers strengths and indicate
whether the manager has what it takes to be effective. There are five dimensions of management talent as
motivation, influence, work style, relationship and thought process.
Technology
Technological advances in retail equipment have led to better inventory control, reduction of shrinkage,
greater accuracy and higher levels of efficiency and customer service. Point of sale (POS) systems have
become sophisticated tools that can track sales and inventory and reduce human error, and additional
software capabilities can provide you with valuable tools such as customer loyalty programs, gift registries,
detailed sales histories, ticket histories, back orders, website hosting and training modules.
Conversion
The three ways to increase sales are to encourage more potential customers to visit your store, increase your
ticket average and increase your conversion rate -- that is, turning people who visit your store but dont
purchase anything into customers. You can address the first two goals through advertising and promotional
strategies, but to address the issue of conversion, you must track the traffic going through your store -- nonbuyers as well as buyers. Tracking conversion rates will help you monitor your progress and refine your
strategies. Conversion rate is calculated by dividing sales transactions by the total number of people coming
into the store
Customer Service
To improve customer service, you must be able to evaluate the customers experience. While speed and
availability of assistance are universal, there are other factors that can turn a shopper into a loyal customer. It
is not enough for employees to be motivated and care about the products they sell; consistency in personnel
is also critical. Turnover in managers and sales staff undermines customer loyalty. Look for empathy,
patience and consistency when hiring sales staff. While experience is important, it sometimes means youll
be faced with bad habits, cynicism or attitudes that can be either pedantic or condescending. Too little
experience can mean an inability to cope or effectively deal with sensitive situations.

3. RESEARCH DESIGN
3.1 RESEARCH
In common sense research is a scientific and systematic search for pertinent information on specific concept
or fact. It may be termed as the application of scientific method and study of problems.
16

The Chambers Dictionary of English states the meaning of research as A careful search, investigation,
systematic investigation towards increasing the sum of knowledge.
C.V Good defines, Research as careful, critical, disciplinary inquiry, varying in techniques and methods
according to the nature and conditions of the problem identified and directed towards the clarification and
resolution of problem.

3.2 RESEARCH DESIGN


Research design is a logical and systematic plan prepared for directing a research study. It specifies the
objectives of the study, methodology and techniques to be adopted for achieving the objectives. It continues
the blue print for the collection, measurement and analysis of data. It provides a systematic plan of
procedures for the researcher to follow. The research design enables the researcher to arrive at certain
meaningful conclusion at the end of proposed study.
According to David J. Luck and Ronald S. Rubin, A research is a determination and statement of the
general research approach or strategy adopted the particular project. It is the heart of planning. If the
design adheres to the research objective, it will ensure that the clients needs will be served.
3.3 RESEARCH METHODOLOGY
In research methodology we study the various steps that are generally adopted by a researcher in studying
his research problem along with the logic behind them. It is necessary for the researcher to know not only
the research methods/techniques but also the methodology.

Sampling - In Statistics and survey methodology, sampling is concerned with the selection of a

subject of individuals from within a population to estimate characteristics of the whole population.
Statistical Analysis Statistics is the study of the collections, organisations, analysisand
interpretation of data. Statistical methods can be used for summarizing or describe a collection of
data

3.4 METHOD OF STUDY

RANDOM SAMPLING TECHNIQUE


In statistics sample is a subject from a population for investigation a random sample is one chosen by a
method involving an unpredictable component. Random sampling is the purest form of probability
17

sampling. Each member of the population has an equal and known chance of being selected. When there is
very large population, it is often difficult or impossible to identify every member of the population, so the
pool of available subjects becomes biased.
Random sampling is a technique where we select a group of subjects for study from a large group. Each
individual is chosen entirely by chance and each member of the population has a known, but possibly non
equal, chance of being included in the sample. By using random sampling, the likelihood of bias is reduced.

TOOLS OF DATA COLLECTION


Questionnaire
A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose
of gathering information from respondents. Although they are often designed for statistical analysis of the
responses, this is not always the case. The questionnaire was invented by Sir Francis Galton. Questionnaire
have advantages over some other types of survey, in that they are cheap, dont require so much effort from
the questioner as verbal or telephone survey, and often have standardized answer that make it simple to
complete data.

SAMPLE SIZE
A sample is a subset population. Typically the population is very large making the census or a complete
enumeration of all the values in the population impractical or impossible. The sample represents a subset of
a manageable size. The sample size of this study has been restricted to 30 respondents only.

4. ANALYSIS AND INFERENCE

4.1 Graph and table showing which age group the respondents fall.

18

19

20
18

Under 20

20-35

19

35-40

10

50-65

16
14
12

10

10
8
6
4

2
0

0 20
UNDER

20-35

35-40

50-65

Inference - The above graph and table shows most of the respondents fall in the age group 20-35 as these
respondents are working men/women and students because most of this age group will influence the buying
behavior compared to the other age group of under 20, 35-40, 50-65.
4.2 Graph and table showing frequently visited retail outlets by respondents.
10
9
8
7
6
5
4
3
2
1
0

9
6

7
5
2

Hyper Market

D-Mart

Reliance

Big Bazaar

Nilgiris

M.K.Retail

Inference - The above graph and table shows most of the respondents do their shopping from D-Mart as it
gives best discounts and offers compared to other retail outlets such as Big Bazaar, Hypermarket, Nilgiris,
M.K Market, Reliance.

4.3 Graph and table showing how often respondents shop from retail outlets.

19

18
16
14
12
10
8
6
4
2
0

17

Once a week

Once a months

17

Twice a month

Once a day

Inference - The above graph and table shows most of the respondents go shopping to the retails outlets once
a week because these respondents are people who are studying and working and hence prefer to shop in
bulk monthly to save time.

4.4 Graph and table showing whether the respondents are satisfied with the services provided by retail
outlets.

Extremely satisfied

Dissatisfied

Satisfied

20

Not very satisfied

20

25
20

20
15
10

5
0

Inference - The above graph and table shows most of the respondents are satisfied by the services provided
by the retail outlets because people with membership are provided with additional discounts and regular
offers.

4.5 Graph and table showing the factors those are missing/lacking by the employees in the retail industry.
Positive behavior

Helpful nature

11

Positive attitude

Share correct
product information

13

Welcome frequent
customers by

greeting them

21

14
12
10
8
6
4
2
0

13

11

Inference - The above graph and table shows most of the respondents feel that the employees in the retail
industry lack in providing correct information about the product as employees itself are not aware about how
the specifications of the product.

4.6 Graph and table showing whether retail outlets provide customer service helpline.

Inference - The above graph and table shows most of the retail outlets
provide customer service helpline. As in to get feedback about the products

Yes

12

No

18

and services offered and improve on their services if there are any
complaints by the consumers.

4.7 Graph and table showing whether the products frequently purchased by
the respondents have adequate supply.

22

30
26
25

YES

26

NO

20
15
10
4

5
0
YES

NO

Inference - The above graph and table shows most of the respondents have stated that the products
purchased by them are adequately available in the retail outlets as demand for the product purchased by
them is high.

4.8 Graph and table showing whether these retail outlets provide respondents good quality food

YES

28

NO

23

30

28

25
20
15
10
5

0
YES

NO

Inference - The above graph and table shows most of the respondents feel that these retail outlets provide
quality food and hence customer prefer buying from these outlets again and again as they have used them
before.

4.9 Graph and table showing whether the respondents are provided with the exchange services in the retail
outlets.

Inference The above graph shows us that most of the respondents are
provided with exchange services. If the there is any defect in the product it can

YES

26

NO

be returned to the stores within a particular time after purchasing the product.

4.10 Graph and table showing whether the products provided in the retail
outlets are priced reasonably.

24

25

Reasonable

22

Very Reasonable

Not reasonable

Not sure

22

20
15
10
5

Inference: The above graph and table shows most of the respondents feel the products provided in the retail
outlets are reasonable and hence customers prefer buying from these outlets again and again.

4.11 The graph and table showing whether respondent personally make influence or participate in any
purchases on the internet during the previous month.

25

YES

NO

26

NO

YES

10

15

20

25

30

Inference: The above graph and table shows most of the respondents feel that they did not take part in any
purchases on internet during the previous month. Hence most of the retail outlets do not provide internet
purchasing facilities to their customers.

4.12 Graph and table showing the type products purchased on internet by the respondents.

26

Software
Books or Magazines
Music CDS
Home electronics
Clothes
Accessories
Others

16

3
1
3
14
5
1
1

14

14
12
10
8
6
4
2

5
3

3
1

Inference - The above graph and table shows most of the respondents purchase Home electronics from
internet. Consumers fine wide range of products with different brands in one place and hence it becomes
easier for consumers to compare and purchase.

4.13 The graph and table showing mode of payment preferred by the respondents.

27

20
18

Cash

18

Debit card

Credit card

Others

18

16
14
12
9

10
8
6

4
2
0
CASH

DEBIT CARD

CREDIT CARD

0
OTHERS

Inference - The above graph and table shows most of the respondents prefer cash payments rather than other
mediums of payment. As they find it more convenient to pay through cash.

4.14 Graph and table showing whether the retail outlets provide respondent membership card through which
they can redeem their shopping points into cash.

28

YES

28

NO

NO

YES

10

15

20

25

30

Inference - The above graph and table shows most of the respondents have a membership card through
which they can avail discounts and cash benefits. By having membership cards they are provided with
additional benefits.

4.15 Graph and table showing the satisfaction level of respondents in content with how retail outlets
encounter and handle their new customers

Inference: The above graph and table shows most of the respondents feel
satisfied the way the retail services encounter their new customers. As they
feel welcomed by them and like to visit the place again.

Satisfied

17

Dissatisfied

Neutral

12

Not very

satisfied
4.16 Graph and table showing time spent by the respondent with their
retailer in order to get to know about the new products which have been
launched.

Inference - The above graph and table shows most of the respondents
spent maximum an one hour in order to get to know about the new
products which have been launched. As customers to a detailed analysis
on which products they buy because the price of these products high.

10 Minutes

20 Minutes

30 Minutes

1 Hour

16

2 Hour

3 to 4 Hour

29

4.17 Graph and table showing whether respondents think that the services offered by retail service encounter
should be more customized.
25
21
20
15

Yes

21

No

10
5
0
YES

NO

Inference - The above graph and table shows most of the respondents whether think that the services offered
by retail service encounter is more customized.

30