Retailers Satisfaction
Retailers Satisfaction
Retailers Satisfaction
INTRODUCTION
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INTRODUCTION
Retailers is the king, this is all the more apt for today's business environment where, all
other factors remaining more or less constant, it is the value addition to the Retailers that is
making all the difference.
RETAILERS SATISFACTION depends on the performance relative to a expectations.
A key premise in RETAILERS SATISFACTION is understanding the needs and meeting or
exceeding the expectations of Retailerss. Furthermore, this is done while optimally using
resources. While most companies have developed strategies to improve quality and external
Retailers service, internal RETAILERS SATISFACTION is a much neglected component of
quality improvement. To this end, it is important to emphasize that total RETAILERS
SATISFACTION can be attained only if all employees devoted to external RETAILERS
SATISFACTION can work together and assist each other to achieve the common objective,
when the internal Retailers isn't satisfied, Relationships with the external Retailers suffer. So, it
is suggested to adopt Retailers oriented approach to keep the internal Retailers satisfied and
motivated, who in turn will focus their attention and energy upon meeting the requirements of
their Retailerss, thereby maximizing the Retailers, thereby maximizing the RETAILERS
SATISFACTION.
RETAILERS SATISFACTION survey is the process to monitor the satisfaction quotient
of their people. In internal satisfaction surveys therefore tracks the return on your investments in
keeping your people happy, high salaries, a quality culture, a healthy work environment.
Last, but not the least internal RETAILERS SATISFACTION survey helps in finding
the critical areas, which need further improvement.
NEED OF INTERNAL RETAILERS SATISFACTION SURVEY ARISES DUE TO
FOLLOWING REASONS.
Rapidly growing organization.
High or growing turnover rate.
Excessive rumor's
Highly competitive industry.
Planned and recent organizational changes.
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In a buyers market where the Retailers is the king, business begins and ends with the
Retailers. The business growth, profitability, liquidity and image of an organization depend
upon the Retailers. It is therefore essential that a supplier meets the Retailers’s expectations fully
and ensures that he is satisfied. Hence it is necessary to place emphasis on building and
maintaining RETAILERS SATISFACTION by putting the Retailers first in all activities.
It is proposed that retailers could enhance customers’ repeat purchase behaviour if they
could successfully increase customer satisfaction through improved service quality. The products
reach customers through retailers whose function is to make products available to customer. The
basic rule for organisation is to consider the retailer as a very important person who bridges the
gap for B-to-B selling of their products. Companies doing a lot to check B-to-C satisfaction,
instead, have to realise the importance of B-to-B satisfaction also for their growth. Realising the
importance of distributors and retailers in achieving customer satisfaction this paper has been
focussed to evaluate retailers/distributors satisfaction
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1. Repeat customers
Satisfied customers are likely to purchase from you again. One easy way of knowing this
is through customer satisfaction surveys. Ask them to rate their satisfaction levels on a scale of 1
to 10 and see who will be happy to purchase from you in the future. Customers that rated you 7
or more are satisfied and are likely to engage with your business again. A score of 6 or below is
cause for concern; these customers are unhappy with you and are a huge attrition risk.
Customers that rated 9 or 10 are your biggest advocates and most loyal customers. You
may use them to promote your brand and improve your CSAT scores.
2. Competition differentiator
Customer satisfaction is the key to making or breaking brands. In this competitive world
of a huge number of brands, customer satisfaction has to be focal to your customer strategy. No
amount of marketing campaigns and promotions will help you if your customers are not
satisfied. Brands that have low levels of customer satisfaction are likely to perish in the future.
Brands that have advocates are far likely to do better than brands that do not. You will have
brand advocates when you have satisfied customers. So, as you see, it all begins and ends with
customer satisfaction.
Contrary to popular belief, pricing is not the main reason for customer churn. Yup, you
guessed it right; it’s customer service. We know of several brands that have a huge customer
base despite high prices. You can use customer satisfaction scores and inputs from your CSAT
surveys to improve upon your customer service processes. Poor customer service quality will
hurt you and cost you customers in the long term. Seek continuous customer feedback to track
your progress and routinely share it with your customer service reps.
According to McKinsey’s research, an unhappy customer will tell about their experience
to anywhere between 9-15 people. Considering the number of dissatisfied customers you may
have, that’s a lot of negative press. This will directly impact your business revenue and brand
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reputation. Repeat business rides on customer satisfaction, and unhappy customers are
detrimental to your business. There will always be customer churn, but you do not want to lose
customers based on bad word of mouth. Conducting regular CSAT surveys will help
you measure customer satisfaction and identify factors that may be hampering your CSAT
scores.
The cost to acquire new customers is 6-7 times more than retaining your current
customers. This puts into perspective how vital customer satisfaction is. Rather than spending
huge amounts of money on acquiring new customers, spend a fraction of it on improving your
existing processes and systems to retain customers. This will go a long way in saving costs and
growing your business revenue.
Brands need to understand customer satisfaction benefits before they invest effort and
resources in processes and systems to improve their CSAT score. Here are some key benefits of
customer satisfaction that all brands need to take into account.
1. Customer loyalty
When your customers are satisfied, they believe in the brand and become loyal. These
loyal customers give brands repeat business and form a major part of the revenue. Losing
customers takes a huge toll on your business revenue and customer churn numbers. Adobe’s
report said loyal customers spent 67% more than new ones via repeat orders, upsells, etc. Add to
this the positive word of mouth to friends and family from your loyal customers, and it really
starts to add up. Satisfied existing customers feel they can promote the brand to their loved ones
for the great experiences they’ve had.
2. Support pillars
Satisfied customers are more likely to stand by in times of crisis; they care for the brand
and want to see it thrive. This has been observed in many cases for big brands such as
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McDonald’s, when there rumors of caterpillars in their foods. They trust the brand and are
understanding of any shortcomings or crisis that may befall them.
3. Sales revenue
Brands focussing on customer satisfaction actively have healthy sales revenue. They do
not lose old customers and have a steady revenue stream from repeat business. Customer
satisfaction and increased revenue are directly correlated. Satisfied customers stay loyal to your
brand, interact with it, buy ofter, and make recommendations to their colleagues, friends, and
family. Run online customer surveys to note which areas are impacting customer satisfaction
negatively and need improvement. This will help improve customer satisfaction and reduce
customer churn.
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4. Boost brand reputation and popularity
Customer satisfaction impacts brand reputation and popularity. See customer feedback
and figure out which areas could be improved and improve satisfaction. Is it accounts or
customer service? Don’t be afraid to ask your customers; honest feedback will help manage
expectations and act accordingly. Famous brands have dedicated teams and initiatives for
improving customer satisfaction, which helps them achieve high sales figures.
Satisfied customers are your biggest advocates. Their positive word-of-mouth lends your
brand credibility, popularity, and helps acquire new customers. This saves brands a lot of money
that they would spend on marketing and promotional campaigns to acquire new customers.
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CHAPTER – II
REVIEW OF LITERATURE
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REVIEW OF LITERATURE
RETAILERS SATISFACTION is the Retailers’s perception that a vendor has met his
expectation fully, efficiently and promptly.
The American Customer Satisfaction Index (ACSI) is an economic indicator that measures the
satisfaction of consumers across the U.S economy. It is produced by the National Quality
Research Centre (NQRC) at the University of Michigan. As long as repeat business is important
and as long as customers have chance to go somewhere else, employees must deliver high level
of customer satisfaction for a company to be successful. In a competitive market place that offers
meaningful consumer choice alternatives firms that do well by their customers are rewarded by
repeat business, lower price elasticity, higher reservation prices, more cross selling opportunities,
greater marketing efficiency and a host of other things that usually lead to earnings growth
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(Fornell et al. 1996). Customer satisfaction with a company’s products or services is often seen
as the key to company’s success and long term competitiveness. In the context of relationship
marketing, customer satisfaction is often viewed as a central determinant of customer retention.
Customer satisfaction is an abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service to product/service. The state of
satisfaction depends on a number of both psychological and physical variables which correlate
with satisfaction behaviors such as return and recommend rate.
The level of satisfaction can also vary depending on other factors the customer, such as other
products against which the customer can compare the organization's products. Work done by
Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 delivered SERVQUAL
which provides the basis for the measurement of customer satisfaction with a service by using
the gap between the customer's expectation of performance and their perceived experience of
performance. This provides the researcher with a satisfaction "gap" which is semi-quantitative in
nature. Cronin and Taylor extended the disconfirmation theory by combining the "gap" described
by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation) into
a single measurement of performance relative to expectation. In a study of catalogue retailer,
Reinartz and Kumar(2000,2002) find a weaker than expected (but significant) relationship
between customer retention and profitability.
The strength of any customer retention-profitability relationship depends on the cost of creating
and maintaining repeat customers. If repeat business is created through price discounts or other
means that do not cause an upward shift in the firm’s demand curve, the relationship will be
weaker. The repeat business produced by higher customer satisfaction will be more profitable in
general than repeat business generated by price discounts. Porter(1985) emphasized the
importance of retaining customers and and suggested how the competitive advantage of retaining
customers is beneficial to firms.
ACSI when put to measure the customer satisfaction in stock market, reveal that satisfied
customers ameliorate the level of net cash flows resulting in high return with low risk (Fornell et
al 2006) Customer satisfaction should not be of theoretical nature, it should reflect the prevailing
culture of organization and should be more practical in nature (Going and Lindholm, 2002). Gale
and Wood (1994) suggested the excellence in quality and service that drives the customer
attention. Satisfaction being the most important concept in marketing drives attention of most of
the researchers. Ali and Bhardwaj (2009) has taken service quality gap approach as a measure of
satisfaction in banking industry and laid emphasis that banks should excel in their corporate
quality programme and customer service system.
Davis-Sramek, Droge, Mentzer and Myers (2009) The Quality of the service is offered by a
supplier helps in creating commitment and loyalty among retailers. The service quality is
independently determined by the quality of different services like trade credits, display units,
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discount on bulk purchases, regular visits, etc. This study fills a gap by investigating retailer
evaluations.
Curhan & Kopp (1987) Curhan & Kopp (1987) states that manufacturer with strong and weaker
brands. A manufacturer with strong brands mainly depends upon customer demand and may not
have to opt for developing a close relationship with the retailer. On the other hand, a
manufacturer with weaker brands mainly depends upon to achieve retailer cooperation and less
capable of depending on the market demand.
Goaill, Perumal & Nor Azila (2013) Goaill, Perumal & Nor Azila (2013) examining the
influence of manufacturer brands’ strength which is to be considered as a moderator in the
relationship between retailer’s satisfaction dimensions and its commitment. So, the manufacturer
satisfies the retailers by giving the Product quality, discount, Pricing policy, etc. The retailer
satisfaction leads to customer satisfaction and towards customer loyalty.
Geyskens and Steenkamp (2000) According to Geyskens and Steenkamp (2000) states that the
retailer’s economic satisfaction is defined by the retailer evaluation from the relationship with
the supplier. It describes the positive reaction from the supplier that stems from the economic
rewards obtained like volume, profit margins and discounts.
Glynn (2010) According to Glynn (2010) states that an unstable relationship between suppliers
and retailers influence the manufacturer’s strong brand. They also added that brand strength
linked with B2B relationship because the handling of B2B relationship by the retailer and
manufacturers determine the strong brand.
Greasley, Assi (2012) Greasley, Assi (2012) states that among quality, pricing, packaging and
manufacturer-retailer relationship the most important factor is the delivery from retailers’ view
point. This theory describes two important attribute such as delivery and logistics which directly
affects the retailers. Hamister (2012)
Hamister (2012) explains that supply chain management practices are positively related to the
retail and supplier levels. The goal of supply chain management is increasing customer value and
achieving a sustainable competitive advantage in the supply chain. It covers all the activities
such as product development, sourcing, production, and logistics, inorder to coordinate these
activities the information systems also required.
Piercy (2010) According to Piercy (2010) describes that competition strategy is primarily
analysed based on the cooperative channel settings and contingently interpreted for competitive
situations between channel. For a long time if the manufacturers have cooperated with retailers
contact the end-users also satisfied with this approach.
Gueimonde-Canto (2011) In Gueimonde-Canto (2011), the retailer satisfaction has huge impact
on supply chain management so they maintain contingent cooperative relationships with both
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their suppliers and customers. To satisfy the retailers the manufacturers should concentrate in the
supply chain system.
Ren, Oh, & Noh (2010) In Ren, Oh, & Noh (2010), the developing countries the manufacturers
and large retailer relationship significantly different from those of developed countries in many
aspects. To assess the validity of existing marketing theories in the context of developing
countries is a real need.
O’Brain (2010) According to O’Brain (2010) talks about relationship quality between retail
relationships and loyalty. The loyalty program quality and Page personal interaction quality are
an antecedent to investigate the relationship quality in retail relationships. Credit policy plays an
important role in relationship development between the retailer and supplier. This gap will be
filled by the dissertation.
Vlachos and Bourlakis (2006) According to Vlachos and Bourlakis (2006) in today’s competitive
markets, to develop joint marketing programs and to increase their performance channel
members are increasingly looking for having fewer but stronger relationships with their partners.
The strong relationship build up by the retailer satisfaction based on the products.
Ramanathan,V (2001) Ramanathan,V (2001) states that the strategies adopted by the FMCG
companies to satisfy the retailing channel by using various components and policies.
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CHAPTER - III
RESEARCH METHODOLOGY
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NEED OF THE STUDY:
From the days of industrial revolution when goods & services were produced to the
present day, the emphasis has shifted from the Producers to the consumer and his needs, and with
the consumer becoming more involved, in the marketing process there is greater need for
information regarding the consumer needs, preferences and making them satisfied of the
products & services, which has led to a constant but increasing need to conduct marketing
research.
This research is an insight into the mind of the consumer, with the help of which the
organizations will become aware of their pitfalls and in turn can also make improvements in the
product regarding the level of satisfaction of the consumers.
RESEARCH METHODOLOGY
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DATA COLLECTIONS
1) Primary Data
2) Secondary Data
Primary Data
The primary Data is collected through the data collection instrument (or) Tool.
Questionnaire by adopting a data collection method of personal interviewing survey method.
Completed questionnaires are revised on a regular basis as the research study progressed to
ensure that the recorded responses are chosen complete and legible.
Secondary DataSecondary information is any data originally generated for some purpose other
than the present research objectives. It include findings based on research done outside as well as
generated in house for earlier studies or even Retailers information collected by the firms sales
department. Data collected from the new papers. Brochures and Internet sites
COMPANY ADDRESS:
Address:- Musheerabad, Bakaram, Kavadiguda, Secunderabad, Telangana 500020
The method of sampling used was random sampling. The main aim of the study was to cover
employee’s at all hierarchical levels. Therefore, a sample of respondents was chosen at each
level of hierarchy in all the departments and services. The sample size was taken as 50. The
respondents were from 4 categories as Scientific Staff, Technical Staff, Administrators, and
Supporting Staff.
Respondents
Employee Details Supporting Technical Scientific
Administrators
Staff Staff Staff
Total No. of.
700 100 105 100
Employees
Sample No. of.
20 10 10 10
Employees
Sample selection is random from all the 4 categories
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SCOPE OF THE STUDY
The opening up of the insurance sector to private companies has made available more product
and world class service to Indian Retailers. To quote Mr. n.rangachari former chairman of IRDA
“ all these years the nationalized insurance
have been bleeding us” “ the future for liberalized insurance sector looks bright with amonitoring
agency committed to promoting the interest of the Retailerss”. According
to business world, “the sheer size and potential of Indian insurance market has attractedmany
new players. Even going by govt estimates there are about 312 million middle class
Retailerss with financial resources to purchase insurance products, only 2.5 % of this is covered
by any form of insurance Sales agents will remain the prime distribution channel, and according
to some estimated insurance could finally end up creating over 20,000 jobs for sales
representatives alone. The IRDA has already accredited 14 insurance training schools spread
over a few major cities of our country, which would churn out about some 1500students
annually. So the scope of the insurance sector is wide and open where there a lot of opportunities
for the sector to grow in the next couple of years. More and more private companies with
international experiences are entering into the market with knowing the scope that is available.
Moreover each and every individual have started realizing the importance of life insurance in
their life as the life is considered to be really unexpected in the world we live today.
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CHAPTER - IV
THEORETICAL FRAME WORK
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THEORETICAL FRAME WORK
In the year 1980 Oklahoma City had four large shopping malls and three smaller malls that were
prospering, today there are two large malls and one small mall in this same area (Currin, 2013).
The changes for the retail industry have been and will continue to be constant. Retail
accommodates changes, and those that change with the times are successful. The firms that can
adjust quickly will remain more competitive; those that do not will suffer. Consumer shopping
behavior has always changed with the updates in technology and changing retail landscape. The
purpose of this project was to look at retail change over time and study the impact of current
technology and multi-channel retailing on the success of retailers today. The questions to be
answered were: What are the historical retail changes? Do multi-channel retailers’
brickandmortar locations benefit from online shopping? What consumer and business trends are
multichannel retailers encountering? How are multi-channel retailers adjusting to the increase of
technology and use of the internet? Which retailers have shown success over time and why?
What can retailers do to remain profitable and satisfy customers in the multi-channel retail
environment? In this paper, information from industry reports and research studies will be
reviewed to show how retailing has changed over the years. Data from multi-channel retailers
will be analyzed and reviewed. Successful multi-channel retailers will be noted and explored to
identify best practices. Consumer behavior studies will be reviewed as they relate to retail
shopping patterns in the multi-channel environment.
Early Retail During the early 1800’s, general stores supplied food and other manufactured items.
The rural areas of the 19th century were regularly visited by peddlers who carried their wares on
their backs or on the packs of their animals. While lower cost distribution entered American
cities with the arrival of department stores, rural America continued to suffer the higher costs of
small stores and peddling. In 1872 the first mail order catalog was created by Aaron
Montgomery Ward as a one-page catalog for rural shoppers.
This was Ward’s solution for the rural community that was too long a distance from a store
(“The Museum,” n.d.). Mid-nineteenth-century grocers typically sold goods that were impossible
to manufacture or process cheaply at home, such as flour, sugar, salt, tea, and tobacco. The
phenomenal growth of the city in the second half of the nineteenth century lead to city markets
that became less convenient to the growing number of people (Gilmore, n.d.). In 1879, the first
five and dime store was opened in New York by Frank Woolworth. Woolworth priced all items
at five cents and pioneered the concept of fixed prices versus haggling. Weeks later his business
was failing, so a second store was opened that included ten cent items and this was a success
(“U.S. History,” n.d.).
The late nineteenth century saw the growth of independent mom and pop stores. As residents
moved into neighborhoods created by the new street railway and railroads and segregated by
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class and ethnicity, small family-run stores popped up to meet their needs. The rise of chain store
companies after WWI challenged the dominance of independent grocers. After WWII the
industry shifted to include fewer, larger grocery stores (Gilmore, n.d.).
From the 1890’s to 1920’s, there was a retail focus on family shops, general stores and
department stores. Marshall Field and R.H. Macy realized that the railroad system and
refrigeration enabled shoppers to travel more broadly and choose from a greater variety of
merchandise. Department stores offered consolidated locations, longer hours, convenience, and
better prices. Department store business grew briskly, especially during wartime, when jobs and
wages were on the rise. In the 1920’s, many downtown stores were able to be remodeled as their
cash flow was good. Marble floors, wide aisles, high ceilings, and wide cathedral-like columns
became common in these major department stores. These stores stunned the public with modern
marvels that still were not yet available in many households. At the same time, the stores could
no longer succeed with customers on price appeals alone, as they now faced competition from
newly introduced dime stores. With the war rationing of the 1940s, American cities began to
struggle as did the big stores. Consumer demand skyrocketed with the post-war baby boom, but
families moved to suburbs and preferred to shop closer to home. The downtown stores saw a
decline, and eventually opened branches in suburban shopping malls to keep afloat (Larson,
2006). From 1920’s to 1950’s technological advances included automobiles, refrigerators in
homes and the increase of catalogs. In 1929 supermarket chains were established and the Great
Depression put a third of workers out of work. The first mall opened in the 1930’s in Dallas. In
1956 the first indoor regional mall was built in Edina, MN (“A timeline,” 2012). In the 1960’s
Sam Walton opened the first Walmart, soon followed by K-Mart and Target. These discount
stores relied on low costs and high turnover to offer customers low prices (“A timeline,” 2012)
Technology in Retail The term “e-commerce” initially was the process of completing
commercial transactions electronically. Leading technologies such as Electronic Data
Interchange (EDI) and Electronic Funds Transfer (EFT) have allowed users to exchange business
information and do electronic transactions. E-commerce became possible in 1991 when the
Internet was opened to commercial use. In 1994 the Internet began to gain popularity with the
public. It took a few years to develop the security protocols such as Hypertext Transfer Protocol
(HTTP), and Digital Subscriber Line (DSL) which allowed rapid access to connection to the
Internet. In 2000 many businesses
represented their companies on the World Wide Web (“History of,” 2014).
In 1994 the Yahoo! Search engine was started as a directory of websites. Amazon.com
became the first online book retailer in 1994 and shortly after EBay was created in 1995 as an
online auction site. From 1996 to 2000 many “Dot-com” companies were created and run by
people barely out of college. The NASDAQ exploded from 600 to 5,000 points in a four year
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period. In 1999 at the peak of the dot-com bubble, it was said that a new millionaire was created
every 60 seconds. The Internet created an ecstatic attitude toward business and inspired many
hopes for the future of online commerce. Many of the dot-coms were not successful and
overvalued, and many of these companies crashed (Smith, n.d.) The collapse of the dot-com
happened in 1999-2001, when many companies failed completely and others lost a large portion
Shortly following the dot-com collapse, Radio Frequency Identification (RFID) came into
the spotlight when Wal-Mart made a public announcement to use this technology in 2003. RFID
is technology that allows businesses to share accurate information about inventory data and the
supply chain network’s product flow between suppliers and retailers. Wal-Mart was the first to
issue a RFID technology mandate, which meant that its top 100 supplies were required to put
RFID tags on their pallets and cases beginning in 2005. Soon after Target, Kroger, Home Depot,
BestBuy, and Walgreens announced similar mandates. RFID allows for wireless automatic
scanning, which can reduce scanning error rates as well as man-power required to scan the
products. RIFD can also reduce stockouts, which can lead to improved customer satisfaction and
Other technology that has affected retail over time is the invention of tablet computers.
The first tablet, Linus Write-Top was seen in 1987 and was very revolutionary for its time (Bort,
2013). Two years later, 1989, the GridPad was created by Palm Computing. Some consumers
believe that the GridPad was the first tablet computer, but typically it was overlooked. It was
heavy and pricey compared to laptops in the same era. Through the years many different versions
of tablets have been introduced. It was not until 2000 that Microsoft introduced its first Tablet,
created by Bill Gates. Some credit Microsoft for coining the term “Tablet PC” with its earliest
tablet devices. In 2010 Apple introduced the iPad which had an easy touch screen. By October
of 2012 Apple sold 100 million dollars in iPad sales, and the sales were expected to continue to
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soar (Bort, 2013).
The iPad’s success spawned new tablet competitors such as the Samsung Galaxy Tab,
Android, and Kindle Fire. The Kindle Fire undercut all other competitors’ prices and made the
tablet affordable to everyone. This set the precedent that a quality tablet could be inexpensive
and accessible. To date, no other tablets have been as successful as the iPad, mostly attributed to
the superior hardware and broad collection of apps. Tablets are hurting the netbook market and
are quickly changing the traditional PC. The evolution of tablets has taken decades, and will
keep evolving for decades to come. It is predicted (by Cisco, the world’s largest maker of
network equipment) that by the year 2017 consumers will each have five Internet devices such as
a tablet, smartphone, laptop, and desktop computer (Bort, 2013). Many consumers are using
their Internet devices to shop online. There are several different arguments that this way of
CURRENT RETAIL
Malls
The first enclosed mall in the United States (U.S.) was developed in Minneapolis in 1956
and was designed to get the shopper out of harsh weather. The two main benefits were
airconditioning and plenty of parking. By 1960 there were around 4,500 U.S. malls (accounting
for 14% of retail sales) and by 1975 there were 16,400 (accounting for 33% of retail sales). In
1987 there were over 30,000 malls accounting for over 50% of retail sales. In the first decades
that malls were built, competition was primarily from downtown retailers, but by the 1990’s
malls were competing with one another. Nearly 140 malls were built every year in the 1990’s.
Today, about a third of the malls have either closed or are “dying”, but the largest and newest
malls are doing well. Most “dying” malls are in poor locations, mismanaged, or should not have
been built. While the economic crash of 2008 is a factor, another contributor is the popularity of
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Mall traffic has seen slow decreases since 2010 (Dixon, 2014) as seen in Figure 1 found
in Banjo & Fitzgerald (2014). Shopping centers have struggled to rebound from the business
downturn, while facing competition from Internet rivals and over development in the boom years
(Hudson, 2012). Many malls are struggling with vacancies, and some malls have closed
completely (Moss, 2013). Vacancy rates of more than 40% are increasing, with the Internet
mostly to blame (Moss, 2013). Rental rates for most shopping centers remain far below levels
seen during the boom (Hudson, 2012). Once the mall experiences the loss of an anchor store, it
usually cannot be replaced, which has a snowball effect on the mall. The closure forces others
out of the mall because the mall does not see as much traffic (Kapner &Whelan, 2014). This is
one example of a common trend seen in malls across America (Kapner & Whelan, 2014).
Mall space is dependent on sales volume. If a retailer cannot boost their customer traffic
and sales, they are likely to dispose of that space or use less space (Gregory, 2014). Historically,
20 to 40% of retail sales are usually seen during November and December. The number of visits
to retail stores in November and December has plummeted by 50% since 2010 (Bainbridge,
2014).
The UCLA Anderson Forecast (2014) looks at predictions for economic outlooks for
California and the nation. They present data that illustrates that commercial real estate is seeing
disruptions from surging e-commerce sales (currently around 6.25% of U.S. retail sales) and high
mall-vacancy rates which is currently about 11% among strip malls. The sales per square foot in
the nations’ malls grew by 2.6% in 2013, which is the slowest growth since 2009, according to
One reason for the decreased mall traffic is a shift in consumer behavior (Dixon, 2014).
Consumers have less time now for shopping, so they turn to smartphones, tablets, email and
social networking. There is a mind shift change to what can be done more efficiently and what
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can be done from home or on the road (Dixon, 2014). Consumers are making fewer trips to the
malls due to the fact that they are shopping more from mobile devices (Gregory, 2014).
Retailers that are able to forecast and adapt to the changing consumer behavior will have
an advantage and edge over those that are slow to recognize trends (Gregory, 2014). They are
having to find unique ways to motivate consumers to visit their stores. Some examples of
retailers that are not losing traffic are fast fashion retailers, off-price/dollar stores, warehouse
clubs, housing-related retailers, and those catering to a healthy lifestyle (Dixon, 2014).
There have been no new fully enclosed indoor malls opened in the U.S. since 2006
(Heywood, 2014). Streets are the number one retail location now, because of convenience for
the consumer to jump out of their car and walk directly into the store. Indoor malls are not
seeing growth post-recession due in part to the increase of e-commerce (Heywood, 2014). In the
last 35 years, brick-and-mortar retail space has grown at twice the rate of the population
(Bainbridge, 2014). Now U.S. domestic retailers are cutting back, claiming too many stores in
too many malls (“United States,” 2013). Malls are struggling with store closures and vacancies,
In recent years more developed markets have seen an increase of non-traditional retailers,
particularly with the growth of online sales, which cut out the store as the middle man (“United
States,” 2013). According to the United States Real Estate Report (“United States,” 2013), the
Wall Street Journal has reported that mall occupancy in the U.S. is improving because of
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discount retailers and international retailers expanding into the U.S. Online retail for the U.S.
will continue to outpace the growth of physical retail stores (Lomas, 2013).
The two key drivers of demand for retail growth are population and income growth, both
of which are declining in America (Bainbridge, 2014). These two factors along with
overbuilding and competition from online sales in the last few years are hurting retail in
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traditional stores in the U.S. The retail industry has seen an increase in vacancies, lower rents,
Location has mattered and always will in retailing, but the rising number of Internet
shoppers is likely to change the current dynamic for shopping centers, with further emphasis on
store productivity over new brick-and-mortar store openings. Many retail chains are already
establishing smaller and fewer stores situated closer to their customers. In addition, the evolution
of mobile point of sale (POS) systems and other cloud applications has allowed retailers to do
business from anywhere, paving the way for on-the-go stores such as pop-ups (Bandolik,
The demand for large physical spaces is likely to diminish with the rising popularity of
virtual stores, and retailers may need to prioritize their real estate investments based on the
highest potential for foot traffic (Bandolik, et al., 2014). The decline of department stores has
been forcing regional malls to search for alternative anchors for years. In 2010 some malls
replaced failing anchor stores with supermarkets, wholesale clubs, gyms, and theaters. Many of
these new tenants are seeing less segregation of tenants by property type. Department stores’
share of U.S. retail market dropped to 7% in 1990, and then to 2.5% in 2010, according to
research by Customer Growth Partners, a consulting firm. One in every four malls in the country
invaluable in selecting optimal retail locations and providing an experience that is seamless for
24
There are a variety of different perspectives on the future
of U.S. malls. Some believe that in five to ten years, up to half of American retail centers will be
empty (Bainbridge, 2014). Green Street Advisors forecast that 10% of the nation’s 1,000 malls
will fail by 2022, and be converted to uses other than retail (Currin, 2013). But even as small
shopping centers struggle with high vacancy rates and more shoppers are heading online, big
malls are going strong and refuse to die (Binkley, 2011). Only time will tell what the future
25
CHAPTER – V
COMPANY PROFILE
26
COMPANY PROFILE
Over a period of 35 years, Suguna has gone from strength to strength and has become a Rs.
8700+ crore company that makes it India’s No. 1 broiler producer. Along the way, Suguna’s
pioneering efforts in contract farming helped create thousands of rural entrepreneurs who share
the growth successfully. "Poultry Integration" introduced and pioneered by Suguna in the
country has energized the livelihoods of farmers in rural India.
Suguna ranks among the top ten poultry companies worldwide. With operations in 18 States
across India, it offers a range of poultry products and services. The fully integrated operations
cover broiler and layer farming, hatcheries, feed mills, processing plants, vaccines and exports.
Suguna markets live broiler chicken, value added eggs and frozen chicken. With the intent to
provide consumers with fresh, clean and hygienic packed chicken, Suguna has set up a chain of
modern retail outlets.
Today, the company’s brand Suguna Chicken is a household name in India. With its Suguna
Daily Fressh outlets, Suguna Home Bites - ready-to-eat home meal replacement (HMR), Suguna
Anytime processed chicken and four varieties of specialty Suguna value added eggs, Suguna is
the undisputed leader in poultry products.
History
Chairman Mr. B.Soundararajan and Managing Director Mr. G.B.Sundararajan saw potential in
growing the Indian Poultry Industry through integration, which later came to be known as
Contract Farming. This led Suguna Poultry to pioneer contract farming in India
In 1986, Mr. B.Soundararajan and Mr. G.B.Sundararajan set up a poultry farm with 200 layer
birds at Udumalpet. During 1989 - 90, when chicken prices crashed because of an over-supply of
birds in the local market, Suguna saw an opportunity for business growth by helping the poultry
farmers who had bought feed and medicines on credit and could not clear their dues. To help
them recover their money, these visionaries began to provide feed and health support to indebted
farmers in return for the end product - eggs. The success of this exercise gave birth to the Suguna
Integration Model.
The poultry integration model has set a win-win situation for both the farmer and the integrator.
Farmers are provided with day-old chicks, feed and health support. Performance is monitored on
a daily basis with Suguna field staff visiting the farms to check on the health of the birds, feed
intake, growth and mortality levels. In six weeks time, the birds are weighed and are ready to be
sold by Suguna. Farmers are paid a handsome growing charge for the birds at the end of this
period. Thus, Suguna takes this success model to the next level vision of energising rural India
benefiting the country, farmer and the company.
A constant and relentless drive has taken the company's growth and expansion which covers over
42,000 farmers from 8,000 + villages in 18 Indian States. Impressed by the model and its
success, Suguna received invitations from many State governments to set up its operations.
27
Many investors and delegates from across borders visit Suguna’s facilities to study this model
and later adopt in their own countries.
With mastery and success in contract farming, Suguna has shaped the poultry industry to its
current position in India.
In 1994 National Trade Excellence Award, Ministry for Power, Government of India
In 1995-2000 Best Performance Award, National Productivity Council, New Delhi
In 2007 Asian Livestock Industry Award, Malaysia
In 2010 Entrepreneur of the year, TiE, Chennai
In 2011 Asian Poultry Personality, International poultry Production, Bangkok
In 2012 Green Ambassador Award, Rotary International
In 2012 Entrepreneur of the year- India
In 2012 "Consumer Products" Ernst & Young
In 2012 National Entrepreneurship and Quality Assurance award, National Association of
Public Health Veterinarians
In 2012 "Agriculture Leadership Award", Agriculture Today
28
CHAPTER - VI
DATA ANALYSIS AND
INTERPRETATION
29
DEMOGRAPHIC PROFILE OF THE RESPONDENTS
INTERPRETATION
From the above table it is inferred that 40% of the respondents age group is 35-44, 25% of the
respondents are in the age group is 25- 34, 20% of the respondents are in the age group above
45 and 15% of the respondents are in the age group of 15 -24.
AGE
20% 15%
15-24
25-34
25%
35-44
40% Above 45
30
2. GENDER OF THE RESPONDENT
INTERPRETATION:
From the above table it is inferred that 67% of the respondents are male and 33 %of the
respondents are female.
100
90
80
70
60
YES/NO
50
Yes
40
30
20
10
0
31
3. EDUCATION QUALIFICATION OF RESPONDENTS
INTERPRETATION
From the above table it is inferred that 25 % of the respondents completed SSLC & Graduation
respectively, 21% of the respondents completed HSC,13 % of the respondents completed
diploma and 16 %the respondents completed technical courses.
120
100
80
60
40
20
0
YES/NO Yes No Total
32
4. MARITAL STATUS OF RESPONDENTS
INTERPRETATION
from the above table it is infered that 80%of respondents are married and 20 % of respondents
are unmarried.
80%
70%
P
E
60%
R
C
E 50%
N
T 80%
40%
A
G
E 30%
20%
20%
10%
0%
Married Un married
MARITAL STATUS
33
5. How long have you been a customer?
INTERPRETATION:
From the above table it is inferred that 55% of the respondents were customer for more than
a year and 45 %of the respondents were less than a year.
60
50
40
10
0
No. Of respondent Percentage
34
6. What was the total purchase amount on your receipt today?
INTERPRETATION:
From the above table it is inferred that 85% of the were having a purchase below 1000 and
remaining were having 15% above 2000.
90
80
70
60
50
Below 1000
40
Above 2000
30
20
10
0
No. Of respondent Percentage
35
7. How often do you visit this store?
INTERPRETATION:
From the above table it is inferred that 85% of the respondents are visiting the store in twice
in a week and remaining 15% were visiting once in a month.
90
80
70
60
50
Twice a week
40
Once in a month
30
20
10
0
No. Of respondent Percentage
36
8. Did you visit the store based on a promotion or sale?
INTERPRETATION:
From the above table it is inferred that 90% of respondents were visiting the store for sales
and 10% were visiting for promotion.
102
100
98
96
94
Promotion
92
Sales
90
88
86
84
No. Of respondent Percentage
37
9. How do you feel about your overall experience at this store?
INTERPRETATION:
From the above table it is inferred that the experience of customer at the store for very good
it was 21 % , for good it is 37%, for neither good nor bad the percentage respondent was 15%,
and for bad it was 17%, very bad experience it is 10%.
No.of respondent
Very good
Good
Neither good or bad
Bad
Very bad
38
10. Were the associates knowledgeable?
INTERPRETATION:
From the above table it is inferred that 75% of the respondents are Yes and 25 %of the
respondents are No.
80
70
60
50
40 YES
NO
30
20
10
0
No. Of respondent Percentage
39
11. Were the items appropriately priced?
INTERPRETATION:
From the above table it is inferred that 60% of the respondents are Yes and 40 %of the
respondents are No.
70
60
50
40
YES
30 NO
20
10
0
No. Of respondent Percentage
40
12. Were the items you looked for in stock?
INTERPRETATION:
From the above table it is inferred that 90% of the respondents are Yes and 10 %of the
respondents are No.
100
90
80
70
60
50 YES
40 NO
30
20
10
0
No. Of respondent Percentage
41
13. Was your customer service issue resolved?
INTERPRETATION:
From the above table it is inferred that 85% of the respondents are Yes and 15 %of the
respondents are No.
90
80
70
60
50
YES
40
NO
30
20
10
0
No. Of respondent Percentage
42
14. How satisfied were you with the service overall?
From the above table it is inferred that the satisfied respondents for highly satisfied it is
17% for satisfied it is 23% and for neutral it was 30%, the dissatisfied were 17%, highly
dissatisfied were 13%.
35
30
25
20
15
No. of respondent
10
Percentage
5
0
43
CHAPTER - VII
RESEARCH FINDINGS &
SUGGESTIONS
44
RESEARCH FINDINGS
From the above table it is inferred that 40% of the respondents age group is 35-44, 25%
of the respondents are in the age group is 25- 34, 20% of the respondents are in the age
group above 45 and 15% of the respondents are in the age group of 15 -24.
From the above table it is was analysed 100 employees from different company and the
response were for 1 rating 8 percentage and for the 2nd rating the percentage was 10 per
cent and for 3 rating it was 12 per cent, for the fourth rating the percentage was 20 and
the last 5 rating it was 40 percentage.
From the above table it is inferred that 33% of the respondents are male and 67 %of the
respondents are female.
From the above table it is inferred that 45% of the respondents are male and 55 %of the
respondents are female
From the above table it is inferred that 75% of the respondents are Yes and 25 %of the
respondents are No.
From the above table shows that 95% of the respondents are aware of SUGUNA.
From the above table it is infered that 20, 50 %of the respondents get information by
advertisement & by friends, 10% of the respondents get information through shops,15 %
of the respondents get information by relative,12 % of the respondents get information
by neighbour and 2 %of the respondents get information by others sources 3
From the above table it is infered that 50 % of the customers are occasionally purchasing
SUGUNA,9 % of the respondents are rarely purchasing SUGUNA ,40 % of the
respondents are regularly purchasing SUGUNA,1 % of the respondents are never
purchasing SUGUNA.
From the above table it is inferred that 25 % of respondents prefer SUGUNA, 20 %
prefer airtel, and 41 prefer for docomo, the last 14% prefer for jio.
From the above table it is inferred that 30% of the respondents are using SUGUNA for
the 2-3 years, 20 % of the respondents are using SUGUNA for 1-2 years, 40 % of the
respondents are using SUGUNA for 3-4 years, 10% of the respondents are using
SUGUNA above four years.
From the above table it is inferred that 80 % of the respondents are satisfied with
SUGUNA, and 20 % of respondents are dissatisfied with SUGUNA
From the above table it is inferred that 30%of the respondents are neutral with
advertisement,23% of the respondents are satisfied with advertisment,17 % of the
respondents are highly satisfied with advertsment,17 % of the respondents dissatisfied
with advertisment,13 % of the respondents are highly dissatisfied with advertisment
45
SUGGESTIONS
Building customer loyalty is one of the essential things you will need to do for your business to
grow. It is more costly to acquire new clients than retaining existing ones.
Updates. Keep your customers up to date through a friendly email newsletter or phone call.
Personalize. Make emails and letters personal so they know you are genuinely interested in their
affairs.
Get involved. Congratulate them on their peak moments.
Share. If you read an article or a book or heard about an opportunity your client might be
interested in, kindly let them know as soon as possible.
Engage. Engage your clients through various social media platforms. Know where they normally
hang out and stay there with them.
Be genuine. Be honest and reliable, build trust, offer an amazing level of service and if you say
you are going to help someone solve a problem, keep your word.
Measure customer effort score
Motivate your team to learn how to resolve issues effectively and quickly and exceed
expectations. Focus on how to improve your results by building a reliable customer
experience. Set appropriate key performance indicators (KPIs) and then ensure that your
team knows what they are and why they should be working to hit those metrics.
One of the key KPIs to measure is customer effort score (CES). The less effort customers
have to put into doing business with you, the more likely they will be to stick with your
company year after year.
Demonstrate excellent product knowledge
46
CHAPTER –VIII
SUGGESTIONS &
RECOMMENDATIONS
47
SUGGESTIONS & RECOMMENDATIONS
Use proven strategies to build customer loyalty
Building customer loyalty is one of the essential things you will need to do for your business to
grow. It is more costly to acquire new clients than retaining existing ones.
Updates. Keep your customers up to date through a friendly email newsletter or phone call.
Personalize. Make emails and letters personal so they know you are genuinely interested in their
affairs.
Get involved. Congratulate them on their peak moments.
Share. If you read an article or a book or heard about an opportunity your client might be
interested in, kindly let them know as soon as possible.
Engage. Engage your clients through various social media platforms. Know where they normally
hang out and stay there with them.
Be genuine. Be honest and reliable, build trust, offer an amazing level of service and if you say
you are going to help someone solve a problem, keep your word.
Measure customer effort score
Motivate your team to learn how to resolve issues effectively and quickly and exceed
expectations. Focus on how to improve your results by building a reliable customer
experience. Set appropriate key performance indicators (KPIs) and then ensure that your
team knows what they are and why they should be working to hit those metrics.
One of the key KPIs to measure is customer effort score (CES). The less effort customers
have to put into doing business with you, the more likely they will be to stick with your
company year after year.
Demonstrate excellent product knowledge
Comprehensive product knowledge is an essential part of customer service. This fact has
become even more important in today’s AI world. Customers can self-serve, figuring out
48
basic facts on their own or with the help of a bot. Once they have escalated to a customer
service call, they really need help, and they need it NOW.
49
BIBLIOGRAPHY
50
BIBLIOGRAPHY
REFERENCE BOOKS
G.P.Gupta, Business Statistics, Sultanchand Publication, Mumbai.
R.K. Uppal, Indian Banking Industry and Information Technology, New Century
Publication, new delhi. Kothari.C.R , Research Methodology, New Age International
Publication , New Delhi
Kotler, Marketing Management, Prentice Hall Publication; 12 edition
Oliver, Satisfaction: A behavioural perspective on the consumer. New York: McGraw Hill.
JOURNAL
Ahmed, Z., Johnson, J., Ling, C.P., Fang, T.W and Hui, A.K. (2002), “Country-of-origin and
Brand effects on consumer’s Evaluations of cruise Lines”, International Marketing Review,
19, 2&3).
Alok Mittal and PrernaSirohi, (2007), “Factor Affecting, Selection of Cell Services: A Cross-
Segmental Study”, Synergy, 4 (1).
Anderson, E.W., Fornell, C. and Leomann, D.R., (1994), “RETAILERS SATISFACTION,
Market Share and Profitability: Findings from Sweden”, Journal of Marketing, 58 (3), pp.53-
66. Andreassen, T.W. (2000), “Antecedents to Satisfaction with Service Recovery”,
European Journal of Marketing, 34 (1&2).
Balasubramanian, Paterson and Jarvenpaa, S.L. (2000), “Exploring the implications of M-
convenience for markets and marketing”,
WEBSITES
www.Humanpsychology.com
www.mbahotspot.com
www.wikipedia.com/Retailers_satisfaction
http://findarticles.com/p/articles/mi_7058/is_1-2_17/ai_n28556199/
http://masterstudies.net/media/pdf/MBA%20Proj/banks%20Retailers%20satis
faction%20in%20kuwait.pdf
51
QUESTIONNAIRE
52
QUESTIONNAIRE
1. Name :
Other specify
1 Below 1000
2 Above 2000
1 Twice a week
2 Once in a month
1 Sales
2 Promotion
10. How do you feel about your overall experience at this store?
Yes No
12. Were the items appropriately priced?
53
Yes No
13. Were the items you looked for in stock?
Yes No
14. Was your customer service issue resolved?
Yes No
15. How satisfied were you with the service overall?
1 Highly satisfied
2 Satisfied
3 Neutral
4 Dissatisfied
5 Highly dissatisfied
54