Retail Industry in India

India is a land of multiple retail formats that range from the street markets to neighborhood kirana stores to large, very modern bazaars. Retail industry in India is expected to rise 25% yearly because of strong income growth, consumerism, changing lifestyles, growing retail space, increasing availability of credit and changing demographics due to globalization. Key trends in the market have also been analyzed which includes emergence of innovative retail formats (Hypermarkets, Department Stores, Dollar Stores, Specialty Stores, Deep Discount Stores, Mom & Pop Stores, Food Services; Shopping Centers), online and rural retailing and integration of various business strategies. This is followed by a section on the FDI scenario of the retail market in India which includes evolution of retail FDI policy, current FDI scenario in retail, single brand retailing and multi brand retailing in India. It is expected that by 2016, modern retail industry in India will be worth US $ 175200billion. Research by the Aditya Birla Group claims, India is a trillion-dollar economy. Of this, retail accounts for about 40%. Of that, 60% is spent on food and groceries. Today organized retailing is something that offers a mix of tangible goods and services to the customer with an experience characterized by comfort. In the present era, the objective of organized retailers has shifted from maximization of profit to maximization of customer satisfaction. In India the customers choose to buy little, buy fresh and buy on every day basis. The retail sector in Eastern India is largely Kolkata-centric. Radically the shopping trend is changing, from conventional to more organized and large retail formats in Kolkata. Evidently, the future of retailing in the city lies in new-age shopping malls, which provide variety, value and convenience in a more comfortable way. Easy-day, Spencer, Big Bazar, Shoppers Stop, WillsSport, Music World, Pantaloons, Fab India, Vishal Mega Mart are the retail outlets which has opened in the city. The local retail chains Ltd., are Arambagh and Sree Hatcheries Leathers. ET Retail Awards 2011 felicitates those that have dedicated themselves to providing Customer and employee satisfaction as well sustaining operational efficiencies. In this light as a SIP trainee of any organized retail house how will you identify objectives to measure retail customer satisfaction? Prepare a suitable questionnaire to support the defined objectives. khadims,

Hypotheses Retail customer satisfaction consists of five dimensions: 1) 2) 3) 4) 5) Product characteristics Price factor Physical aspects Promotional Schemes Personal interaction Ho: There is no significant relationship between product characteristics and satisfaction. Ho: There is no significant relationship between price factors on satisfaction. Ho: There is no significant relationship between physical aspects and satisfaction. Ho: There is no significant relationship between promotional schemes and satisfaction. Ho: There is no significant relationship between personnel interaction and satisfaction.

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Objectives (1) To explore the component of customer satisfaction. (2) To rank the factor of satisfaction. (3) To study the motivating features for the consumers to visit an organized retail outlets.

Questionnaire on Retail Customer Satisfaction Customer Profile Name: Gender: Age: Male Female 26-40 years Graduate Service Not working above 40 years Post Graduate Student Homemaker above 5 lakhs

Below 25 years

Education: Up to metric Occupation: Business

Annual Family Income: below Rs. 3 lakhs

Rs 3 lakhs to 5 lakhs

Motivating features for customers to visit organised retail outlets Please rank on your preference by assigning ranks 1(most preferred) to 6 (least preferred) for shopping from retail outlets with reference to goods and services. Variety of products Branded products High quality products Availability of necessary goods Prompt services Home delivery services Please identify the reason for shopping from retail outlets with reference to price. Fixed price Reasonable price Affordable price

Please identify the reason for shopping from retail outlets with reference to location. Close to residence Close to workplace Close to meeting place

Component of customer satisfaction Indicate how you satisfied personally about product characteristics, pricing facility, physical aspects, promotional schemes and personnel interaction by circling the appropriate number: highly satisfied (indicated by 1), satisfied (2), neutral (3), dissatisfied (4), or highly dissatisfied (5). Quality of product Good value for money 1 1 2 2 3 3 4 4 5 5

Unique and trendy goods Variety of goods Price affordability Convenient location Parking facility Payment procedure Shopping ambiance Credit facility Free gifts and coupons Discounts Salespersons attentiveness Willingness to resolve queries Good mannered

1 1 1 1 1 1 1 1 1 1 1 1 1

2 2 2 2 2 2 2 2 2 2 2 2 2

3 3 3 3 3 3 3 3 3 3 3 3 3

4 4 4 4 4 4 4 4 4 4 4 4 4

5 5 5 5 5 5 5 5 5 5 5 5 5

Data Analysis of 150 samples Table 1: Classification of Respondents according to Profile Sr no 1 Factor Gender Category Male Female Total Below25 years 26-40 years Above40 years Total Up to metric Graduate Post graduate Total Business Service Not working Students homemaker Total Below 3lakhs 3lakhs-5 lakhs Above 5 lakhs Total No.of respondents 93 57 150 55 70 25 150 26 66 58 150 24 35 18 28 45 150 87 44 19 150 Percentage 62 38 100 36.67 46.67 16.67 100 17.33 44 38.67 100 16 23.33 12 18.67 30 100 58 29.33 12.67 100

Age

Education

Occupation

Annual family income

Classification of the respondents according to their preference for shopping from Retail Outlets with reference to Price Price Fixed Price Reasonable Price Affordable Price Total No. of respondents 60 63 27 150 Percentage (%) 40.00 42.00 18.00 100.00

Customer preference for shopping from Retail Outlets

18% 42% 40% Fixed Price Reasonable Price Affordable Price

Association test to explore the component of customer satisfaction Product characteristics Quality of Product Good value for money Unique and trendy goods Variety of goods Level of customer Satisfaction Satisfied Neutral Dissatisfied 58 72 60 67 6 16 20 10 5 7 8 8

Highly satisfied 81 52 61 64

Highly dissatisfied 0 3 1 1

Result chi-square test

Personnel Interaction and level of customer satisfaction Personnel interaction Salespersons attentiveness Willingness to resolve queries Good mannered Highly satisfied 60 46 56 Satisfied 65 69 69 Neutral 20 27 20 Dissatisfied 4 6 4 Highly Satisfied 1 2 1