Summr Project

8/6/2019 Summr Project

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[TYPE THE COMPANY NAME]

[Year]

[Type the document title]

[Type the document subtitle]

saurav

[ T Y P E T H E C O M P A N Y A D D R E S S ]


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ACKNOWLEDGEMENT


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AbstractMy project Measuring and Ensuring Customer satisfaction Which I am undergoing in

PRIL involves studying customers behaviour with in the store and interaction with them to

understand their needs and satisfaction level with the package (Product and service) offered

bythe company. It also deals with comparative analysis of different big retail players out in

cityKolkata and finding key buying factors from customer perspective.

It is very important to understand customers needs to serve them better. and to

understand needs management should understand key buying factorsso that management could

prepare themselves accordingly. Satisfying our customers is an essential element to staying in

business in this modern world of global competition. We must satisfy and even delight our

customers with the value of our products and services to gain their loyalty and repeat business.

Customer satisfaction is therefore a primary goal of process improvement programs. So how

satisfied are our customers? One of the best ways to find out is to ask them using Customer

Satisfaction Surveys. These surveys can provide management with the information they need to

determine their customer's level of satisfaction with their products and with the services

associated with those products. Employees and the management of the store can use the survey

information to identify opportunities for ongoing process improvements and to monitor the

impact of those improvements. This paper includes details on designing your own customer

satisfaction questionnaire, tracking survey results and example reports that turn survey data into

useful information.

An unsatisfied customer will tell seven to 20 people about their negative experience.

Asatisfied customer will only tell three to five people about their positive experience. So a

retailershould always think in that way to satisfy their customer and delighting them with the

serviceswhich competitors never think of.


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EXECUTIVE SUMMARY

Primarily the study aims to give the reader an insight into the Indian retail industry. The recentrevolution and growth of the industry and the entry of many large business houses into this

domain has ushered in a definite transition of the structure of the industry from its traditional

outlook. Different models employed to evaluate the industry are also covered in the first portion

of this report.

Secondly, the study aims to measure the customer satisfaction level with package(service &

product) offered by Pantaloon Retail (India) Limited. Apart from looking at different aspects

of the service, a survey has been conducted and data gathered to find the drivers of customer

satisfaction. It illustrates the importance of shoppers satisfaction measurement scales in the retail

business.

Thirdly the study involves finding of Key buying factors from the customers perspective. In this

paper the quality of the service offered analysed on the basis ofgap model. In order to find this

information separate questionnaires were prepared to fulfill the tasks that were identified at the

start of the project. A survey is being carried on a sample size of 175 shoppers as well as few

department managers and staffs. The detail findings of which will be submitted in the final

project. The information gathered in the end will enable us to develop marketing strategies for

Pantaloon Retail (India) Limited.


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TABLE OF CONTENTS


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Comparative Penetration of Indian Retail(in %)

Organized retail in India has the potential to add over Rs. 2,000 billion (US$45 billion) business

by the end of 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 estimatedinvestment of around $421 billion slated for the next four years4.

Organized Retail Penetration across categories (in %)

Segment analysis


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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 2008. 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.

1. 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.

2.Apparel retail

The ready-mades and western outfits are growing at 40-45 per cent annually, as the


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market teems 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.

3. 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.

4. Pharmaceutical retail Corporate Catalyst India A report on Indian Retail Industry

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 organised and corporatised as is seen in other retailing formats (food, apparel etc).

A few corporates who have already forayed into this segment include Dr Morepen (with

Lifespring and soon to be launched Tango), Medicine Shoppe, Apollo pharmacies, 98.4

from Global Healthline Pvt Ltd, and the recently launched CRS Health from SAK

Industries. In the south, RPG groups 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.

5. 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.

6. Book retail

The book industry is estimated at over Rs. 30 billion out of which organized retail


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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.

7 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.


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Retailing Formats in India

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.

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


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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 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.

Retailers Current Format New Formats experimenting with

Shoppers Stop

Ebony

Crossword

Piramyd

Pantaloon

Subhiksha

Vitan

Food World

Globus Department Store

Bombay Bazaar

Efood mart

Metro


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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,Kir anas have now started providing more valued

services like stocking ready to cook vegetables and other fresh produce. They also provideservices 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 localkirana 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.

Apart from metro cities, several small towns like Nagpur, Nasik, Ahmadabad, Aurangabad,

Sholapur, Kolhapur and Amravati as witnessing the expansion of modern retails. Small towns in

Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail becausemany small cities like Nagpur have a student population, lower real estate costs, fewer power

cuts and lower levels of attrition. However, retailers need to adjust their product mix for smaller

cities, as they tend to be more conservative than the metros.

In order for the market to grow in modern retail, it is necessary that steps are taken for rewriting

laws, restructuring the tax regime, accessing and developing new skills and investing

significantly in India.


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COMPANY PROFILE

Pantaloon Retail (India) Limited was incorporated as Manz Wear Private Limited by

Mr. Kishore Biyani on 12 October 1987, converted into a public limited company in September1991, renamed as Pantaloon Fashions (India) Limited a year later and thereafter into Pantaloon

Retail (India) Limited in July 1999. The company is headquartered in Mumbai. Mr. Kishore

Biyani is the Managing Director. Pantaloon Retail forayed into modern retail in 1997 with the

launching of fashion retail chain, Pantaloons in Kolkata. In 2001, it launched its first set of Big

Bazaar stores in 2001 in Kolkata, Hyderabad and Bangalore, a hypermarket chain that combines

the look and feel of Indian bazaars, with aspects of modern retail, like choice, convenience and

hygiene. This was followed by Food Bazaar, food and grocery chain and launch Central, a first

of its kind seamless mall located in the heart of major Indian cities. Some of its other formats

include collection I (home improvement products), E-Zone (consumer electronics), Depot(books, music, gifts and stationary), aLL (fashion apparel for plus-size individuals), Shoe

Factory (footwear) and Blue Sky (fashion accessories). It has recently launched its e-retailing

venture, futurebazaar.com.Today Pantaloon Retail (India) Limited, is India's leading retail

company with presence across multiple lines of businesses. The company owns and manages

multiple retail formats that cater to a wide cross-section of the Indian society and is able to

capture almost the entire consumption basket of the Indian consumer. The company operates

through 12 million square feet of retail space, has over 1000 stores across 71 cities in India and

employs over 30000 people10. The USP is primarily on offering fresh fashion at affordable

prices.Pantaloon Retail was awarded the International Retailer of the Year 2007 by the

US based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007

at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of

Future Group, a business group catering to the entire Indian consumption space.


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FUTURE GROUP

Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of Indias leading

business houses with multiple businesses spanning across the consumption space. While retail

forms the core business activity of Future Group, group subsidiaries are present in consumer

finance, capital, insurance, leisure and entertainment, brand development, retail real estate

development, retail media and logistics.

Pantaloon Retail is the flagship enterprise of the Future Group, which is positioned to cater to the

entire Indian consumption space. The company follows a multi-format retail strategy that

captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the

group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the

value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look,

touch and feel of Indian bazaars with the choice and convenience of modern retail.

Future Capital Holdings, the groups financial arm provides investment advisory to assets worth

over $1 billion that are being invested in consumer brands and companies, real estate, hotels and

logistics. Other group companies include, Future Generali, the groups insurance venture in

partnership with Italys Generali Group, Future Brands, a brand development and IPR company,

Future Logistics, providing logistics and distribution solutions to group companies and business

partners and Future Media, a retail media initiative. Future Groups joint venture partners

include, US-based stationery products retailers, Staples and Middle East-based Axiom

Communications

The groups presence in Leisure & Entertainment segment is led

through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure

chains,Sports Bar and Bowling Co. and family entertainment centers, F123. Through its partner

company, Blue Foods the group operates around 100 restaurants and food courts through brands

like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.11

Future Groups vision is to, deliver Everything, Everywhere, Every t ime to Every Indian

Consumer in the most profitable manner. The group considers Indian-ness as a core value

and

its corporate credo is - Rewrite rules, Retain values.

Future the word which signifies optimism, growth, achievement, strength, beauty,

rewards

and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten;

create new opportunities and new successes. To strive for a glorious future brings to us our

strength, our ability to learn, unlearn and re-learn, our ability to evolve.

We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in

the consumer space and facilitate consumption because consumption is development. Thereby,


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we will effect socio-economic development for our customers, employees, shareholders,

associates and partners.Our customers will not just get what they need, but also get them where, how and when they

need.

We will not just post satisfactory results, we will write success stories.

We will not just operate efficiently in the Indian economy, we will evolve it.

We will not just spot trends, we will set trends by marrying our understanding of the Indian

consumer to their needs of tomorrow.

It is this understanding that has helped us succeed. And it is this that will help us succeed in the

Future. We shall keep relearning. And in this process, do just one thing.

Rewrite Rules. Retain Values.

Group Vision

Future Group shall deliver Everything, Everywhere, Every time for Every Indian

Consumer in the most profitable manner

Group Mission

We share the vision and belief that our customers and stakeholders shall be served

only by creating and executing future scenarios in the consumption space leading to

economic development.

We will be the trendsetters in evolving delivery formats, creating retail realty,making consumption affordable for all customer segments for classes and for

masses.

We shall infuse Indian brands with confidence and renewed ambition.

We shall be efficient, cost- conscious and committed to quality in whatever we do.

We shall ensure that our positive attitude, sincerity, humility and united

Core Values

Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.Respect & Humility: to respect every individual and be humble in our conduct.

Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas, knowledge and information.

Valuing and Nurturing Relationships: to build long term relationships.

Simplicity & Positivity: Simplicity and positivity in our thought, business and action.

Adaptability: to be flexible and adaptable, to meet challenges.


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Flow: to respect and understand the universal laws of nature.

LINE OF BUSINESS


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Line of business of PRIL:


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PRICING AND REVENUE GENERATION IN

Pantaloon Retail(India) Limited.

While pricing of products is relevant to customer anywhere, Indian consumers are remarkably

more price conscious (Business Today,1988). Pricing is the only marketing mix that brings

funds(revenue). Production of service involves relatively higher ratio of fixed costs to variable

costs (Lovelock, Wirtz and Keh, 2001). Thus, the cost based pricing formula commonly used

in manufacturing in which relevant component, markup added, is rarely appropriate to a serviceprovider. Cost based pricing is even less favoured as the tracking and identification of service

production cost elements get more difficult. A major component of service cost is employee

time. The value of human time particularly of professionals is hard to calculate or estimate.

Cost based pricing in service thus, is potential threat to relationship building with customers.

PRIL has the system ofSIS(Shop in shop). In the SIS approach, company earns money from the

brand not owned by them by providing the facility and space as fixed monthly rent plus certain

percentage over the sold amount after a particular amount. It has adopted pricing strategies

based on the patronage and relationships which are more suited to services than the cost,

margins and competitive parity based pricing techniques. SISs available in pantaloonKakurgachi are Bodline, One mobile.

The pricing objectives are implemented in PRIL through the following sequence of steps at

the hospital:


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Since pricing is the main tool of revenue generation in a subsidy-free Company, it is

worthwhile to map how the PRIL earns. In terms ofoverall revenue generation pattern, theStore closely corresponds to its counterparts. The first source of revenue to the hospital is from

the Shoppers coming to the shop. However, interestingly, approximately, 50% of the revenue

from a green card holder is earned. Thus the second source of revenue to the hospital is from

selling Non pantaloon brands like Biba, Anabelle, 109F etc as a selling percentage.


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Buying Factors in a Store :

When buying a product or service most people go through stages before making a decision:

What are they looking for?

How good is the product?

How much money are they willing to pay?

When do they need the product or service?

What makes a product more competitive than others in the market?

The consumer buying process is a series of incidents. Many internal and external

factors have an impact on the buying decisions of the consumer. Besides the information

processing perspective, marketing analyses consumer behaviour by employing a psychologically

grounded concept of attitudes. It is consumer attitudes that are usually named as the major factor

in shaping consumer behaviour and a wealth of studies is available on the topic of how attitudes

can prdict behaviour

External Factors :

Price of the product

Quality of the product

Services offered by the store

Store location

Company policies

Store ambience

Product variety

Product availability

Internal Factors :

Culture

Taste & preference

Previous experience..and several factors


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Internal factors cant be controlled by they can increase football by fulfilling all the external

factors. And to do so company need to do in-depth market research. They need to know their

customer base as well as their priority to serve them to their expectation.


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Customer Satisfaction process in the Store are:

a)Product assortment: This is one of the important parameter of customer satisfaction. A

collection containing a variety of sorts of things give customers to pick what they like. A store

like pantaloon is dealing with several brands under same category. Some are their owned,

some they have taken on contract basis.

b)Price : price plays most important role in deciding the value of money. Country like India

where people are so price sensitive that they changes their buying decision on the basis of the

price of the product. So company needs to maintain a big range of product on the basis of the

price.

c)Service delivered:

Employees play an important role in providing satisfactory service. All human

actors who playa part in service delivery and thus influence buyers perceptions. All the

Services which are shown in below picture are provided for free from the store side.

Customer perception

Product cost + service cost +profit=product Selling price

Though all the services are delivered for free of cost to all customers. So it has to be lined up

properly

with the product features as it is consumed instantly with in the store itself.


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Services offerd by the store :

Overall factors behind customer satisfaction :


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Imapact of customer satisfaction :


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Analysis Of SERVQUAL using gap models

Model of service quality gap

Parsuram et al, curry, 1999;luk& Layton 2002


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THEORETICAL EXPLANATION OF THE GAP MODEL

The first gap is the discrepancy between customer expectations and management

perceptions of these expectations. GAP 1 arises from managements lack of full understanding

about how customers formulate their expectations on the basis of number of sources: advertising,

past experience with the firm and its competitors, personal needs, and communications with

friend. Strategies for closing this gap include improving market research, fostering better

communication between management and its contact employees, and reducing the number of

levels of management that distance the customer.

The second gap results from managements inability to formulate target levels of service

quality to meet perceptions of customer expectations and translate these into workable

specifications. GAP 2 may result from a lack of management communication to service quality

or a perception of the unfeasibility of meeting customers expectations; however, setting goals

and standardizing service delivery tasks can close this gap.

The third gap is referred to as the service performance gap, because actual delivery of the

service does not meet the specifications set by management. GAP 3 can arise for a number of

reasons, including lack of teamwork, poor employee selection, inadequate training, and

inappropriate job design. Customer expectations of the service are formed by media advertising

and other communications from the firm.

GAP 4 is the discrepancy between service delivery and external communications in the

form of exaggerated promises and lack of information provided to contact personnel. Customers

use some criteria to form their judgments of service quality, which are based on a comparison

between expected and perceived service.

The gap between expected and perceived service is called GAP 5 which is a measure of

service quality; satisfaction is either negative or positive.


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INTRODUCTION OF RESEARCH

Research process is a series of systematic steps that are followed to solve a business problem. Itis

the framework of the entire plan-of-action. It clearly describes crucial issues like the

studyspurpose and objectives, the type of data needed, the technique to be used for selecting

samples,data collecting method, analyzing it, managing costs and other aspects that are essential

forconducting business research.

SAMPLING DESIGN:-

Sampling is an essential part of the business research process. Sampling is the technique

ofselecting a representative part of a population for the purpose of determining the

characteristicsof the whole population.

During the research, Simple Random Sampling is used to collect data from the shoppers

because the target population is small, homogeneous, and the sampling frame is clearly

defined.

DATA COLLECTION:-

Business research generally uses two types of data:

Primary data- It is collected directly from the respondents using data collection methods

like survey interviews, questionnaires, measurements, direct observation, or tabulation.

Secondary data- It is the data that which already exists and is collected by some other

person or organization. Sources of secondary data include websites, journals, books, etc

This research uses a judicious mix of primary and secondary data to optimizethe

quality of research findings within the allotted time and money.


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Survey research:

The method of collecting information by asking a set of pre-formulated questions

in apredetermined sequence in a structured questionnaire to a sample of individuals drawn so as

to berepresentative of a defined population is known as survey research. Survey method used in

researchis descriptive in nature. Although it is quantitative in nature, it also covers some

qualitative aspects

like research concerning customers satisfaction levels.

OBSERVATION STUDY:

Unlike the methods discussed earlier, observation methods do not involve any verbal

communicationwith the respondents. It involved following customers movement and listening

discussion with theco-partner regarding store related issues. It also involved visiting other retail

stores in the city likeWestside (mani Square), Shopper stop (City center)


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DATA ANALYSIS

Football analysis according to age:

Company needs to know their customer base well to run it successfully. The highest number of

respondents falls in the group 20-25.It can be deducted that most of the consumers who visit

retail outlets regularly are the youth. They make up almost 40% of the population who shop at

Kakurgachi store.

Key buying factors

From the above Pie chart we can see that 14% people has said that green card discount is the

primary factor behind shopping here in this store. Where as 15% people has said that

promotional offer is the main factor.

38%

27%

22%

13%

18-25 26-35 36-45 >45


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So far here we can say shoppers of pantaloon are mainly concerned for the discount. That means

they are price sensitive. Though the initial price is bit high but after discount it is becoming very

much affordable for more or less all the customers. As per the daily sales report almost 40-50%

of the income is generated from green card holders. Everyone is not happy with the green carddiscount structure. So company need to take it seriously and need to restructure the policy.

Issues regarding green card:

Discount is not given if customer is not carrying the card.

Floor staff does not communicate conditions for getting discount properly while making

the green card.

Duplicate card and updated takes more time than communicated(45 days) to reach

customers place. Sometimes it does not reach after 1 to 1.5years.

Company should issue those cards from Zonal Office so that it will reach customer placeas soon as possible.

Issuing duplicate cars and Friday fashion sms should be sent to all registered customer on

time. Company should take up this regular problem on high priority basis.

Age wise analysis for key buying factors

Age group 18-25

Consumer behaviour heavily depends on the age. A person of age group 18-25 will look for

trendy product. He/she is ready to do some experiment with his/her looks where a person of age

group above 50 would like to stay within his comfortable zone. He will look for some reliable

and durable product.


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Age group 25-35

Analysis says in this people are more cautious about the product. They look for the

product as well as price. They are not so much bothered about the location and service

quality. They are more likely to move to get the best appropriate product.

Age group 35-45

In this age group people look for value of money and service quality as they are more

conscious about the value added service and quality. They dont like to experiment with

the product. They do like to stay in their comfortable zone but sometimes they do it as per

the well wishers asvice.


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Age group>45

With this Pie-Chart we can see that in this age group people are so bother about the price but

they look for the quality , Ambbience as do like peace while shopping as shopping is not a

regular routine for them its a program what they execute when it is required.

Gender wise analysis for key buying factors

Gender : male

Above pie chart says that males are free to move they are not so much about the location of the

srores as they dont have such physical constraints. They are price and product sensitive. They

are more concerned about the discount and value of money.


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Gender : Female

Analysis says female are more price sensitive and Almost 14% female respondents said they

shop here because of flexible exchange policy. It proves that they take longer time than male to

fix their mind regarding product. From here we can say that they spend more time than a male.


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SPSS ANALYSIS

FACTOR ANALYSIS:

Factor analysis is primarily a data reduction and summarization technique.

While, doing research, a large amount of variables are usually present. These variables have to

be correlated and they have to be reduced to manageable level for convenience and betteranalysis. Thus factor analysis is used to establish relationships among sets of many interrelated

variables in terms of few factors.

Factor analysis is an interdependence technique in which all variables are

simultaneously

considered and each related to all others. With factor analysis the researcher can first identify the

separate dimension of the structure and then determine the extent to which each variable is

explained by each dimension. Once, these dimensions and the explanation of each variable are

determined, the two primary uses of factor analysis- summarization and data reduction can be

achieved. In summarizing the data, factor analysis derives underlying dimensions that describethe data in a much smaller number of concepts than the original individual variables. Data

reduction can be achieved by calculating scores for each underlying dimension and substituting

them for original variables.

IMPORTANCE OF FACTOR ANALYSIS:

To identify underlying factors that explains the correlations among a set of variables.

To identify a new, smaller set of uncorrelated variables to replace the original set of correlated

variables n subsequent multivariate analysis like regression.

To identify smaller set of salient variables from a larger set for use in subsequent multivariate

analysis.Factor Analysis can be applied for market segmentation for identifying the underlying variables

on which to group the customers. It can be also applied in the case of product research as to

determine the brand attributes that influence consumer choice


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Objective Of Factor Analysis in this Study :

In this study factor analysis is used for identifying the underlying factors or variables that

influence a customer to buy a product in Kakurgachi Store.

Steps in Factor Analysis :

Formulating the problem

Constructing the correlation matrix

Determining the method for factor analysis. In this study Principal Component Analysis

method has been used. This approach considers the total variance in the data.

Determining the number of factors

Interpreting the factors

Calculating the factor scores

THE KEY BUYING FACTORS OF CUSTOMERS AT THE TIME OF BUYING

PRODUCT

Price of the product

Service Quality

Product Quality

Value for money

Ambience

Promotional Offers

Green Card Discount

Exchange Poilcy

Location

There are other factors also which play important role but alone they cant impress customer to

go for buying.

They are like

Staff knowledge

Staff assistance, etc.


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DESCRIPTIVE STATISTICS:

The table shows the mean of different variables with their standard deviation. The higherthe

value of standard deviation more is the data fluctuation observed in sample data. Here we seethatmore or less the data samples show uniformity, from these we can infer that the variableswhich

are here to describe the sample size of 175 is more or less uniform in their response this

shows the researcher the path that it is going in the right direction.

Descriptive Statistics :

KMO TEST:

The KMO measure of sampling adequacy is an index used to examine the

appropriateness of factor analysis. High values between .5 and 1.0 indicate factor analysis is

appropriate. Values below .5 imply that factor analysis may not be appropriate. The KMO

measure varies between 0 and 1. A score close to zero implies that the sum of partialcorrelations is large relative to the sum of correlation indicating that the diffusion in the pattern

of correlation. A KMO measure close to 1 indicates that the pattern of correlation is relatively

compact and hence factor analysis should yield distinct and reliable factors. Kaiser

recommended accepting values greater than 0.5 as acceptable. Bartletts measure tests the null


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hypothesis that the original correlation matrix is an identity matrix. For factor analysis to work

we need some relationships between variables and if the R-matrix were an identity matrix then

all correlation coefficients would be zero. Therefore, we want this test to be significant (i.e.

have a significance value less than 0.05). A significant test tells us that the R-matrix is not an

identity matrix; therefore, there are some relationships between the variables we hope to

include in the analysis. For these data, Bartletts test is highly significant (p


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ROTATED COMPONENT MATRIX:

The table shows the rotated matrix. The factor loadings are rotated using Varimax rotation

method to minimize the biasness due to other variables. The matrix contains the loadings of each

variable onto each factor. Factor loadings are simple correlation between the variables and the

factors. At this stage SPSS has extracted three factors.


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SCREE PLOT

A Scree Plot is a plot of Eigen values against the number of factors in order of extraction. The

Scree Plot shows that the first 3 factors with Eigen values more than 1 have been selected with

Eigen values of 4.895, 2.279, and1.705 hence three factors were selected. The curve up to the

first two variables is quite steep after which the curve becomes smooth and flatter showing thatthe latter variables have less significance. It is possible to score every case in the analysis

according to its value on the variables as they load on each of the rotated factors. These weighted

scores are called factor scores. They can be quite useful, depending on the research, and the

values computed for each case can be saved as a separate fie for input into other analysis.


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Implication of factor analysis

y By doing factor analysis of collected data I have got three major stable factors having

Eigen Value more than 1.These factors comprise of different variables.

y The Identified factors are

1. Factor 1 : promotional discount, Value for money, Service quality ,Location.

2. Factor 2 : Ambience, Green card discount.

3. Factor 3:Staff assistance, price

So by using factor analysis the variables have been clubbed under four baskets, namely Factor 1,

2, and 3.

Factor 1:

The variables promotional discount, Value of money, Service quality, Location have

been clubbed together to form this factor. In retail Industry every business house can provide

products but the extra benefits that make the difference. Products available in store are

available in stand alone store apart from private brands products. So to keep the market

share maximum company needs to provide extra benefits which in turn will increase sales

volume and repurchase intention.

Factor 2:

Product is not the main concerned variable here main variable is convenience. This is

mainly important for the private labeled brands. As these products are not available any where

apart from PRIL stores. So company can check their profit margin to increase sales volume as

well as value for money which in turn will increase customer satisfaction and loyal customer

base and repeat purchase intention. This will help Non pantaloon brands to show their collection

to many customers as because previous incident will increase footfall also in the store.


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Factor 3 :

The variable price, staff assistance have been clubbed together to form this factor. Price is

another important factor in Indian business as Indian people are very sensitive. So instead ofrunning promotional offer in single section for a week company can keep on changing the offers

every dat. Like what Wal-mart do. This program in Wal- Mart is called Value of the day.

If we analyze these factors we can find one thing in common that is extra benefit. People who are

coming to the store for shopping that are always concerned about the value added services. They

are mainly concerned about the value for money. They always check whether they are getting

extra or not. So effective weekend marketing activities play an important role to attract customer

and give them a reason to buy products from the store.

Realibility check for different factors

Cronbachs alpha is a measure of internal consistency, that is, how closely related a set of items

are as a group.

Defintion

Cronbachs is defined as

Where N is the number of components(items or testlets), is the variance of the observed total

test scores, and is the variance of component i.

Alternatively, the standardized Cronbachs can also be defined as

Where N is the number of components(items or testlets), equals the average variance and is

the average of all convariances between the components.


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Factor 1:

N of Items-4Alpha=.9038The alpha coefficient for the four items is 0.9038, suggesting that the items have relatively high

internal consistency.

Factor 2:N of Items-3Alpha=0.6935The alpha coefficient for the three items is .6935, suggesting that the items have relatively highinternal consistency.

Factor 3:N of Items-2Alpha=0.8288

Cronbach's alpha can be viewed as a measure of how well the sum score on the selected itemscapture the expected score in the entire domain, even if that domain is heterogeneous

All the calculated scores of alpha is more than 0.7 that indicates the collected data are highlyreliable and items in those factors are consistent.


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Customer satisfaction

What is customer satisfaction?

We are in the midst of a revolution in business. Some call it a customer revolution,

others a quality revolution, others a service revolution. Organizations are attempting to obtain

increased customer satisfaction by focusing on the quality of their products and the service

provided. This movement toward quality has produced significant benefits but just like other

business fads, joining and adopting the religion does not insure that the real objective of

producing customer satisfaction will be obtained.

What exactly customer Satisfaction is??

Customer satisfaction is a key ingredient to the success of any business. It is the

most important factor that creates repeated customers. Some people know it but do not realize its

importance. If a customer of yours is satisfied with one of your products or services, chances are

this customer will purchase more of your products or services, which will increase your revenue.

Therefore, in order to have your new or existing customers buy more from you, you will have to

follow techniques that work. Customer satisfaction takes a very important place in Marketing. As

much as you think that your marketing strategies should help you generate sales, think about how

the same marketing strategies could help you achieve Customer satisfaction. There are a lot of

elements involved with Customer satisfaction.

Know the problems of your customers and what they are looking for, then offer them the right

products. Products that the customers receive are also an area that was assessed because of a high

value that is placed on satisfaction in the product. Satisfaction of the product is evaluated by

content, display and delivery of the product.

Customers purchasing habits would include such issues as: who do they usually go shopping

with, how often, how long do they spend in a shop, etc. Psychographic portraits of many

customers allow customer segmentation in terms of purchase frequency, respondents experience

of various shopping centres or service organizations, as well as benchmarking against

competitors.

IMPORTANT FACTORS:

The Store covers various aspects to fulfill the need of customer as well to

Making the shopping a great experience for them. From the First factor where in customer enters

into the store till he or she Purchases and moves out of the parking for his or her way should be

rememberable one and a great experience for the customers. Even from security staff to

Housekeeping everyone should be well groomed.


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As we all know that First impression is the last impression so its important for every retailer to

package its staff, The better we groom ourselves, the more we are pleasing to our customers.

1. Judgment is made about people based on the performance image they display.

2. Physical appearance plays a vital role in determining how others perceive us.

Then is the customer interaction which is very demanding and plays a very crucial role in anyretail store. Every customer interaction is an opportunity for us to contribute to customer

satisfaction. The customer may look in for something specific or have a question about a

product, our store or our policies customer may be looking around. Sometimes customer could

have dissatisfaction against our system.

Effective and courteous interactions about all our customers go a long way in ensuring success of

our store. If we are able to handle solution to them we win a loyal customer to life. Also

Customer Service desk which is specially mend for the judgment of customer behaviour. Where

in customer come along with there complaints, Exchange, Wrong billing, other staff complaints.

This is the place where the customer service executives have to be very polite, patient, andunderstand the problem of customer and try to resolve them so that we dont loose that

customer.

And retain them and convert them into our loyal customer.

It has been observed in the training period that the percentage of customer complaint in

PANTALOONS is 4%. As dissatisfied will tell other 10 more customers. Which is not good for

the company as we have risk of loosing those 10 other customers also?

The customer retention leads to :

Loyalty

Profit

Repurchases

Life time value/References

Positive word of mouth advertisement


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Measurement customer satisfaction level on different attributes

1.

From here we can understand that how the impact of a factor changes with age group and

gender. Price is one of the most important factors in customer satisfaction. Out of 175

respondents only 12 are very much unsatisfied with the price. And when we see gender wise we

can see that out of 12 8 are female. It proves that they are more price sensitive than male. And

number of over satisfied people is also more in >45 than any 18-25 group. Because people of agegroup 18- 25 is quantity concerned not quality.


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Now here in case of service quality the satisfaction level has changed again. Overall 27

respondents are over satisfied with the service which is very good. But if we see it age wise we

find youths are not that much of happy as compared to >45 age group.

From this pie chat we can deduce that almost every one is happy with the promotional offer as it

runs

through the year in different forms. But still 7 respondents are not happy with the promotional

offer.

The probable reasons for thatRespondent wanted the particular offer in the dept from where he is buying. Some of times

store does not run any overall offer. They do it department wise.

There is no as such as such remarkable offer in wellness department etc.

4.


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5.

Again the data has changed almost 75 respondents are satisfied with the value of money and 43

respondents are dissatisfied with the value of money. This 22% can harm the

overall business profit. Company need to be very cautious about this group. More over company

need to increase product line as per price. They have lower range product in mens casual

section.But its not displayed properly.

6.

From the tabulated data depicted above and responses of the consumers, it is evident that a good

number of target consumers are satisfied with the stores at large. However, there are those who

are unsatisfied or who have never visited the store at all. Such consumers form the potential

market that the companies must strive to attract.


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This goes to show that Pantaloons is doing many things right. It seems to enjoy a reasonable

amount og goodwill. The marketing strategies, advertisements, promotions, quality, pricing,

product variety etc., seem to be very appealing and also translate into sales and repeat purchases.

SPSS Analysis to measure Customer Satisfaction

FACTOR ANALYSIS:

Factor Analysis is primarily a data reduction and summarization technique. While, doing

research, a large amount of variables are usually present. These variables have to be correlated

and they have to be reduced to manageable level for convenience and better analysis. Thus factor

analysis is used to establish relationships among sets of many interrelated variables in terms of

few factors.

Factor analysis is an interdependence technique in which all variables are simultaneouslyconsidered and each related to all others. With factor analysis the researcher can first identify the

separate dimension of the structure and then determine the extent to which each variable is

explained by each dimension. Once, these dimensions and the explanation of each variable are

determined, the two primary uses of factor analysis derives underlying dimensions that describe

the data in a much smaller number of concepts than the original individual variables. Data

reduction can be achieved by calculating scores for each underlying dimension and substituting

them for original variables.

KMO TEST :

The KMO measure of sampling adequacy is an index used to examine the appropriateness of

factor analysis. High values between .5 and 1.0 indicator factor analysis is appropriate. Values

below .5 imply that factor analysis may not be appropriate. The KMO measure varies between 0

and 1. A score close to zero implies that the sum of partial correlations is large relative to the

sum of correlations is large relative to the sum of correlation indicating that the diffusion in the

pattern of correlation. A KMO measure close to 1 indicates that the pattern of correlation is

relatively compact and hence factor analysis should yield distinct and reliable factors. Kaiserrecommended accepting values greater than 0.5 as acceptable. Bartletts measure tests the null

hypothesis that the original correlation matrix is an identity matrix. For factor analysis to work

we need some relationships between variables and if the R-matrix were an identity matrix then

all correlation coefficients would be zero. Therefore, we want this test to be significant (i.e.


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have a significance value less than 0.05). A significant test tells us that the R-matrix is not an

identity matrix; therefore, there are some relationships between the variables we hope to

include in the analysis. For these data, Bartletts test is highly significant (p


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SCREE PLOT

A Scree Plot is a plot of Eigen values against the number of factors in order of extraction. The

Scree Plot shows that the first 4 factors with Eigen values more than 1 have been selected with

Eigen values of 3.2, 1.72, 1.284 and 1.098 hence four factors were selected. The curve up to the

first two variables is quite steep after which the curve becomes smooth and flatter showing that

the latter variables have less significance. It is possible to score every case in the analysisaccording to its value on the variables as they load on each of the rotated factors. These weighted

scores are called factor scores. They can be quite useful, depending on the research, and the

values computed for each case can be saved as a separate fie for input into other analysis.


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IMPLICATION OF FACTOR ANALYSIS

By doing factor analysis of collected data I have got for major stable factors having

Eigen Value more than 1.These factors comprise of different variables.

The Identified factors are

Factor 1: Service quality, ambience, Green Card discount

Factor 2: price, promotional offer, exchange policy

Factor 3: Location, value for Money

So by using factor analysis the variables have been clubbed under four baskets, namely Factor 1,

2, and 3,

Factor 1 is named as the attracting factor

Factor 2 is named as the retaining factor

Factor 3 is named as the value for money

ATTRACTING FACTOR

The variables Service quality, ambience and green card discount have been clubbed together

to form this factor. In retail Industry every business house can provide products but the extra

benefits that make the difference. Products available in store are available in stand alone

store apart from private brands products. So to keep the market share maximum company

needs to provide extra benefits which in turn will increase customer satisfaction.

RETANING FACTOR

The variables price, promotional offer, exchange policy have been clubbed together to form

this factor. Price is another important factor in Indian business as Indian people are very price

sensitive. So Instead of running promotional offer in single section for a week company can keep

on changing the offers every day. Like what Wal-mart do. This program in Wal-mart is called as

Value of the day.


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VALUE FOR MONEY :

The variables Location and value of money have been clubbed together to form this factor.

As initially we have seen that shoppers are not happy with the location of the store as because

this is the only store in North kolkata. So they need to travel a lot to reach store. That is why if

we check the customer base of Kakurgachi store, we will find that maximum customers are

coming from places around 3km radius of the store as because they are highly ptice concerned.

They do check the worth of the product in compare to price.

RELIABILITY CHECK OF FACTORS

Factor 1

No. of items : 3

Alpha : 0.7882

Factor 2:

No. of items: 3

Alpha: 0.7604

Factor 3:

No. of items: 2

Alpha: 0.4403

Findings from reliability check

Apart from the factors all the factor items are consistent and stable.

In case of factor 3 the alpha value is 0.4403 for 2 items so with this factor if we describe

the whole population then it can lead to an error. It can create random error.

For factor 1 & 2 alpha values are 0.7882 & 0.764 respectively. It indicates acceptable

reliability. So re test with this items will now lead t oany random error.

Summr Project

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