An empirical study of customer expectation and perception in organized retail sector
Transcript of An empirical study of customer expectation and perception in organized retail sector
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An empirical study of
customer expectation
and perception in
organized retail sector
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+OBJECTIVES
To learn and understand the important factors in service quality
dimensions applicable to organized retail sector
To know the level of customer satisfaction with service qualitydimensions.
To check the significance of difference between customers
expectations and perceptions in organized retail sector
To suggest measures for improving the quality and efficiency in
organized retail sector.
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+Key words
Organized Retail: It is an interface between manufacturer &
consumer, who insures the easy flow of goods to the
customers. It is a retail place where all the items are
segregated and brought under one roof.
Customer Expectation: Is what the customer expects
according to available resources and is influenced by culturalbackground, family lifestyle, personality, demographics,
advertising, experience with similar products and information
available.
Customer Perception: It is totally subjective and based on the
customers interaction with the product or services. It is derived
from the customers satisfaction of the specific product or
service and quality of service delivery.
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+SERVQUAL MODEL
In 1988 Parasuraman et al developed a model to measure the
expectation & perception towards any service. The model has
five dimensions.
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Reliability: Is concerned with the stores ability to perform the
service accurately and dependably
Responsiveness: Is related with the employees willingness to
help customers and provide prompt services.
Assurance: Includes employees knowledge, courtesy and their
ability to inspire trust and confidence.
Empathy: Is related with caring, individualized attention given
to customer or the ease of access, approachability and effort
taken to understand customers requirements.
Tangibles: Is all about the appearance of the physical facilities
and material relayed at retail outlet.
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+Literature review
In retail business service quality plays an important role. The
retailers should know how customers evaluate service quality
and what can be done to improve it.
Retaining customers in retail business is tough. The retailers
should strive to improve service quality and provide assurance
towards its customers.
In retailing perceived quality is having a significant influence
on purchasing and repurchasing decisions.
Tangibles, Reliability, Responsiveness, Competence, credibility,
accessibility and customer knowledge are positively related to
customer satisfaction.
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+ Understanding Service Gap Model
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+ Gap 1: The difference between what customer expected and
what management perceived about the expectation of
customers
Gap 2: The difference between managements perceptions of
customer expectations and the translation of those perceptions
into service quality specifications and designs.
Gap 3: The difference between specification or standards of
service quality and actual service delivered to customers.
Gap 4: The difference between the service delivered to
customers and the promise of the firm to customers about its
service quality.
Gap 5: The difference between customer
expectation and perception
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+Profile of respondents
Demographics Majority percentageGender 57 % males
Education 48 % GraduatesAge(years) 37 % in 25-30
Monthly income 38 % in 30001-40000
Monthly spending 43 % spend only 2001-3000
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+Findings
Study reveals that the retail services
perform the service within the expectedtime.
The expectations and perceptions are onlyat a high for error free services.
The overall gap result is negative , henceretail services need to improve.
Reliability
The study reveals that both th customers
perception and expectations are at thehighest level.
Employees willingness to help &
employees promptness have positive mean
quality gap score.
The overall gap is negative (-0.015)and
suggests improvement.
Responsiveness
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+Findings
Every customer expects that dealing employee at organized retailoutlet must has sufficient knowledge about products .
In the case of trustworthiness of employees customersexpectation are matching with their perceptions.
The overall mean quality gap score is negative (-0.082) whichshows that staff dont have enough knowledge & courtesy toinspire trust & confidence among customers.
Assurance
The case reveals that level of expectation &perception for all parameters concerningEmpathy dimension are equal.
Total negative gap shows deficiency in effortstaken by employees in understandingcustomers requirements.
Empathy
The case reveals that Tangibles dimension customersexpectations & perceptions are at same level.
This is the only dimension where majority of parameters arehaving positive mean quality gap score including overall meanquality gap score (0.1029).
Thus, organized retail outlets are meeting with the expectations ofcustomers for this dimension or customers are satisfied withtangibles associated with organized retail outlets
Tangibles
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+Conclusion
Service quality is an important aspect for retailers to know about
customers satisfaction & SERVQUAL model is the root way to
measure the effectiveness of service quality.
In this paper gap has been identified between expectation &
perception of customers towards the organized retail outlets of
Udaipur, which revealed dissatisfaction among customers.
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+Suggestions
Organized retail outlets of Udaipur can take following actions to reduce themean quality gap score:-
Retail outlets should adopt the efficient inventory management system sothat customers can find the merchandise available at the time ofrequirement.
Employees of retail outlets should be trained to handle the customerscomplaints effectively.
Employees of retail outlets should have sufficient knowledge aboutproducts available in store.
Availability of physical facilities should be improved
Retail outlets should try to perform error free services.