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A project report submitted in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION
DR. R. VELU PROFESSOR DEPARTMENT OF BUSINESS ADMINISTRATION SRM SCHOOL OF MANAGEMENT KATTANKULATHUR, CHENNAI 603 203.
CERTIFICATE
This is to certify that the project entitled A STUDY ON CUSTOMER SATISFICATION TOWARDS UTENSILS IN BIG BAZAAR AT BANGALORE submitted to SRM School Of Management in partial fulfillment of the requirement for the award of the Degree of Master of Business Administration, is a record of the original research work done by D.MARIMUTHU(35080309) during the period of his/her study in the Department of Business Administration, SRM School Of Management, Chennai under my supervision and guidance and that the project has not formed the basis for the award of any degree/ associate ship/fellowship of other similar title to any candidate of any university.
ATTESTED
CERTIFIED
Vivo-Voce held on
External Examiner
DECLARATION
I, D.MARIMUTHU (35080309), hereby declare that the project entitled A STUDY ON CUSTOMER SATIFICATION TOWARDS UTENSILS IN BIG BAZAAR AT BANGALORE submitted to SRM School Of Management in partial fulfillment of the requirement for the award of the Degree of Master of Business Administration, is a record of the original research work done by me under the supervision and guidance of MRS.SREE VIDHYA, Head General Management, Department of Business Administration , SRM School Of Management, Chennai and that it has not formed the basis for the award of any degree/ associate ship/fellowship of other similar title to any candidate of any university.
ACKNOWLEDGEMENT
I hereby take this opportunity to express my heartfelt thanks to T.R. PACHAMUTHU, B.Sc., M.I.E, Founder & Chairman, SRM Group of Educational Institution, Chennai. Dr. JAYSHREE SURESH, DEAN OF SRM SCHOOL OF MANAGEMENT gave her kind permission to do this project. MRS.SREE VIDHYA, Assistant Professor, for giving me valuable suggestions and corrections without his support this report would have not been completed successfully. I extend my heartfelt thanks to MR. BENJAMIN ,MANAGER OF FUTURE GROUP IN BANGALORE who had given me the necessary guidance and support while doing my project work in the company. I also thank all staff members who have helped me to be on the right track and to build a deeper understanding on the topic.
CONTENTS
PAGE CHAPTER TITLE NO. LISTOFTABLES LISTOFCHARTS I INTRODUCTION II REVIEWOFLITERATURE III COMPANYPROFILE IV RESEARCHMETHODOLOGY V DATAANALYSISANDINTERPRETATION 65 51 25 14 1
LISTOFTABLE
Table No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
Tables Tableshowingrespondentsbasedontheirage Tableshowingrespondentsbasedontheirmaritalstatus Tableshowingrespondentsbasedontheirgender Tableshowingrespondentsbasedontheirfamilymonthlyincome Tableshowingrespondentsbasedontheireducationalqualification Tableshowingrespondentsbasedontheiroccupation Tableshowingrespondentsbasedontheirfamilytype Tableshowingrespondentsbasedonthemeansofknowingbigbazaar Tableshowingtherespondentsbasedonthefrequencyofshopping Tableshowingtherespondentsbasedoninfluencingshoppingbyadvertisement Tableshowingtherespondentsbasedonthefastreachingsourceofadvertisement Tableshowingrespondentsbasedonthedurationofbeingcustomertobigbazaar Tableshowingrespondentsbasedonthereasonforloyalty Page no. 65 66 67 68 70 71 72 73 75 76 77 79 81 82
Tableshowingmedianvalueofcustomersatisfactioninvarious dimensions
Distributionbasedonthequalityoftheutensils Distributionbasedonthevarietyoftheutensils Distributionbasedontheservice Distributionoftherespondentsbasedontheirbrand Distributionoftherespondentsbasedontheirresponsiveness Distributionoftherespondentsbasedontheirprice
83 85 86 87 88 89
Continued.
Tables
Page no. 90
22.
Karlpearsonscoefficientofcorrelationbetweentherespondentsageandcustomer satisfactiontowardsutensilsinvariousdimensions
91
KarlpearsonscoefficientofcorrelationbetweentherespondentsFamilymonthly incomeandcustomersatisfactiontowardsutensilsinvariousdimensions Intercorrelationmatrixamongvariousdimensionsofcustomersatisfaction Associationbetweenthedurationofbeingcustomertobigbazaarandvarious dimensionofcustomersatisfaction tTestBetweenTheRespondentsGenderAndVariousDimensionsOfCustomer Satisfaction tTestBetweenTheRespondentsMaritalstatusAndVariousDimensionsOf CustomerSatisfaction tTestBetweenTheRespondentsTypesoffamilyAndVariousDimensionsOf CustomerSatisfaction Onewayanalysisofvarianceamongtheeducationalqualificationoftherespondents withregardtocustomersatisfactioninvariousdimensions OnewayanalysisofvarianceamongtheOccupationoftherespondentswithregard tocustomersatisfactioninvariousdimensions OnewayanalysisofvarianceamongtheReasonforloyaltyoftherespondentswith regardtocustomersatisfactioninvariousdimensions
93
95 96
99 102
27.
28.
105
108
111
114
LISTOFFIGURES
Diagram No. Title Chartdepictingthedistributionofrespondentsbasedontheir age Chartdepictingthedistributionofrespondentsbasedontheir maritalstatus Chartdepictingthedistributionofrespondentsbasedontheir 67 PageNo. 65 66
1. 2.
3.
gender Chartdepictingthedistributionofrespondentsbasedontheir 68
4. 5. 6.
7.
8.
9.
frequencyofshopping Chartdepictingthedistributionofrespondentsbasedon 76
10.
influencingshoppingbyadvertisement Chartdepictingthedistributionofrespondentsbasedonthe 78
fastreachingsourceofadvertisement Chart depicting the distribution of respondents based on the durationofbeingcustomertobigbazaar Chartdepictingthedistributionofrespondentsbasedonthe reasonforloyalty 81 79
Distributionbasedonthequalityoftheutensils
84
PageNo. 85 86 87 88 89 90
20.
ChapterI INTRODUCTION 1.1Marketing The key to understand integrated marketing today is to understand the implications ofthewordstrategy.Astrategyiswhatyouaregoingtodo;amarketingstrategyis the link between the product and the market; it provides the much desired direction for allocation of marketing effort. It is translated into an action plan through the tools of marketing management. These tools together are called as MARKETING MIX.IndividuallytheyareProduct,Price,Place,andPromotion. MarketingMix is the set of controllable, tactical marketing tools product, price place and promotion that the firm blends to produce the response, it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for the product. Many possibilities can be collected into four groups of variableknownas4ps. PRODUCT MIX
PRICE MIX
Marketing
Mix
PROMOTION MIX Product Anobjectoraservicethatismassproducedormanufacturedonalargescale with a specific volume of units . A typical example of a mass produced service is thehotel industry. A less obvious but ubiquitous mass produced service isa computer operating system. Typical examples of a mass produced objects are themotorcarandthedisposablerazor. Price Thepriceistheamountacustomerpaysfortheproduct.Itisdeterminedbya number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have thesameproduct. Place Place represents the location where a product can be purchased. It is often referredtoasthedistributionchannel.Itreferstohowtheproductgetstothe customer; for example, point of sale placement or retailing. This fourth P has referring to the channel by which a product or services is sold (e.g. online vs.
PLACE MIX
retail), which geographic region or industry, to which segment (young adults, families,businesspeople),etc. Promotion Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements advertising, public relations, word of mouth and point of sale. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an importantroleinwordofmouthandPublicRelations(seeProductabove). 1.2Customersatisfaction Customer satisfaction research is a path to building customer loyalty in both consumer and B2B business markets. Our customer satisfaction research measurement studies with two core components are focused on building customer loyalty. An actionable and action oriented approach, our customer satisfaction research engagements help build customer loyalty, market share and competitiveadvantage.
1.3 CustomerSatisfactionDevelopmentComponents CustomerSatisfactionDecisionDrivers Qualitativeresearchuncoversthebroadpictureofhowcustomersmakepurchase andrepeatpurchasedecisions.Weexploretheproductandcompanyattributes,and we go the next step, to understand purchase and brand loyalty factors beyond attributeswhichaffectcustomersatisfactionandcustomerloyalty.Thesemaybethe brandproductuseapplication,emotionaldrivers,orexternalforces. AttributeDefinition Before proceeding to quantitative customer satisfaction research, we identify and create core attribute factors which, based on preliminary findings, account for most ofthedifferencesincustomersatisfactionlevels.
OpportunityScanning Opportunity scanning asks the question, "What else?" "What are your core needs and whatwould bethe ideal solutionto those needs?" Here ourqualitativeresearch exploration uncovers possible emerging needs, and changing competitive factors. See how we think about the decision process and where opportunity scanning fits in theprocessasanimportantfirststep. CustomerSatisfactionMeasurementStaticMeasures Static customer satisfaction measurements are standard core quantitative survey measurements. They are termed "static" because they are used as constant comparativemeasuresandareofourstandardCSMresearchmeasurements. BrandCompanyAttributeRatings Specificproduct,brandorcompanyattributes. AttributeImportance Reportedorstatedimportancelevels. BrandCompanyOverallRatings Thesearetheglobalor"dependent"measureswhicharelatercorrelatedtoattribute ratingsandimportanceratings. BrandCompanyLoyalty Here we measure the stability of repeat purchase of the client product brand or companybrand. GlobalShiftExpectations
Over time, customer expectations change as competitors and technology enhance customer service and product quality. Performance which once would "exceed expectations"istodaythenorm.Hereweassesshowexpectationsareevolving. CustomerSatisfactionMeasurementDynamicMeasures Thedynamicmeasuresfocusoncompetitivepositioningandthepathwayformaking specificchangestoproductorcustomerservicetoimprovecustomersatisfaction. CompetitiveAdvantage EmergingNeeds Today's and tomorrow's customer needs, forecasting where possible how needs will evolve over time. We employ, where appropriate, concept testing to posit future ways the client company, products, or brands may respond to these changing customer need environments. A customer satisfaction measurement study that accounts for market dynamics by anticipating emerging customer needs becomes actionablesothatourclients"seethefuture"abitmoreclearlyfromthecustomers' perspective. 1.4CUSTOMERBUYINGBEHAVIOUR Itistruefactthatifyouaresatisfiedyourecommendedtoothers.Wordofmouth and customer satisfaction play a very important role in determining market perceptionaboutaproduct.Itisthemarketperceptionthatdeterminesthesuccess of a company and so it is very important for the marketer to measure the willingness of existing users of a product to recommend it to others. The same is a lotofinteresttocustomersaswellforithelpsthemmakethepurchasedecision.
Theprojecthighlightsthefactorsthatinfluencethebuyingdecisionofaconsumer. Thefactorunderconsiderationwouldbe: Price Incomeoftheconsumer Featuresinthevarietyofdesigns Safetystandard Warrantyscheme Financefacility IsanIndianconsumerreadyformore? In other words, from the spread of choices offered by various manufacturers under varioussegments,ofwhichonethecustomerwillfinallyturntheignitionon? Customer satisfaction index: some of the most advance thinking in the business worldrecognizesthatcustomerrelationshipsarebesttreatedasassets. If you cannot measure it, you cannot improve it. Lord William Thomson Kelvin (18241907) Clause8.2.1inISO9000:2000states:
As one of the measurements of the performance of the quality management system, the organizations shall monitor information relating to customer perception as to whether the organization has met customer requirements. The method for obtainingandusingthisinformationshallbedetermined TherequirementhasbeenthereintheQS9000standardclause4.1.6whichsays: Trends in customer satisfaction and key indicators of customer dissatisfaction shall be documented and supported by objective information. These trends shall be compared to those of competitors, or appropriate benchmarks, and reviewed by seniormanagement. There is obviously a strong link between customer satisfaction and customer retention.Customersperceptionofserviceandqualityofproductwilldeterminethe successoftheproductorserviceinthemarket. With better understanding of customers perceptions, companies can determine the actionsrequiredtomeetthecustomersneeds.Theycanidentifytheirownstrengths andweaknesses,wheretheystandincomparisontotheircompetitors,chartoutthe pathfutureprogressandimprovement.Customersatisfactionmeasurementhelpsto promote an increased focus on customer outcomes and stimulate improvements in theworkpracticesandprocessesusedwithinthecompany. Customer expectations are the customerdefined attributes of your product or service. We cannot create satisfaction just by meeting customers requirements fully
because these have to be met in any case. However falling short is certain to create dissatisfaction. Majorattributesofcustomersatisfactioncanbesummarizedas: Product quality Productpackaging Keepingdeliverycommitments Price Responsivenessandabilitytoresolvecomplaintsandrejectreports Overallcommunication,accessibilityandattitudes
Values
Benefits
Features Attributes
Attributeindividualscanbedistinguished\specialquality Featureschartersitics
We cannot begin to address the customer satisfaction issue we define the parametersandmeasuresclearly. The customer satisfaction index represents the overall satisfaction level of that customerasonenumber,usuallyasapercentage Thebuyingprocessinvolvesthefollowingsteps
Problem Recognition
Evaluation Information search
Buy Decision
The fact that word of mouth sales are a big deal in this industry has also helped. Industry players and market surveys reveal that 2030 percent of sales are through wordofmouth. Forthepurposeoftheprojecthasundergonethrough Surveyingtherelevantconsumerbasethroughexhaustivequestionnaire. Understandtheelementsunderplayingineachsegment DeducingAanalyticaloverviewthroughdifferentstatisticalmethods
Recommendationcomesfromsatisfactionandsatisfactioncomesfrom
Product Quality
Service Quality
Relationship Quality
ThePurchasedecisionprocess
PROBLEM RECOGONITIO N INFORMATION RESEARCH EVALUATION OF ALTERNATIVES PURCHASE DECISION POST PURCHASE BEHAVIOUR
1.5RETAIL Indian retail industry is going through a transition phase. Most of the retailing in our country is still in the unorganized sector. The spread out of the retails in US and India shows a wide gap between the two countries. Though retailing in India is undergoinganexponentialgrowth,theroadaheadisfullofchallenges.
1.5.1WhatisRetailing?
The word "Retail" originates from a FrenchItalian word. Retailersomeone who cuts off or sheds a small piece from something. Retailing is the set of activities that markets products or servicesto finalconsumers for their own personal or household use. It does this by organizing their availability on a relatively large scale and supplyingthemtocustomersonarelativelysmallscale.RetailerisaPersonorAgent or Agency or Company or Organization who is instrumental in reaching the Goods or MerchandiseorServicestothe Enduserorultimateconsumer.
1.5.2ScenarioofRetailinginIndia
India has one of the largest numbers of retail outlets in the world. Of the 12 million retail outlets present in the country, nearly 5 million sell utensils and related products. Though the market has been dominated by unorganized players, the entry ofdomesticandinternationalorganizedplayersissettochangethescenario.
CHAPTERII REVIEWOFLITERATURE Adissatisfiedcustomerwilltellsevento20peopleabouttheir negativeexperience.Asatisfiedcustomerwillonlytellthree tofivepeopleabouttheirpositiveexperience(Kan1995). This feasibility study commissioned by the National Institute for Advanced Industrial Science and Technology in Japan (AIST) and supported by the Sustainable Consumption Unit (UNEP) provided an overview of approaches used in different disciplinesforevaluatingconsumerbehaviour.Thestudyanalysedtheapplicabilityof existing research concepts, theories, and tools for evaluating customer satisfaction withproductservicesystems(PSS).
Itincludedadiscussionoftheirstrengths/weaknesses. 2.2 CUSTO MER SATISF ACTIO N WITH PROD UCT DESIG N It has been recognized that ecoefficiency improvements at production and product design level can be significantly reduced or totally negated by rebound effect from increasedconsumptionlevels. In line with this problem factor 10 to 20 material and energy efficiency Improvements have been suggested (Factor 10 Club 1994; SchmidtBleek 1996; Bolund, Johansson et al. 1998; Ryan 1998). The improvements, however, if not carefullydone,maystillleadtoreboundeffectsthroughchangesinresourceprices. Asapotentialsolutiontothefactor10/20vision,systemlevelimprovementshaveto be made, contrary to redesigning individual products or processes (Weterings and
Opschoor 1992; Vergragt and Jansen 1993; von Weizscker, Lovins et al. 1997; Ryan 1998;Manzini1999;Brezet,Bijmaetal.2001;EhrenfeldandBrezet2001). Theproductservicesystem(PSS)concepthasbeensuggestedasawaytocontribute to this system level improvement (Goedkoop, van Halen et al. 1999; Mont 2000). Here the environmental impacts of products and associated services could be addressed already at the product and service design stage. Special focus should be giventotheusephasebyprovidingalternativesystemsolutionstoowningproducts. A number of examples in the businesstobusiness (B2B) area exist that confirm the potential of PSS for reducing life cycle environmental impact. It is, however, increasingly evident that business examples are difficult to directly apply to the privateconsumermarket. Private consumers, contrary to businesses, prefer product ownership to service substitutes(Schrader1996;Littig1998).Evenifaccepted,theenvironmentalimpacts ofservicesproductsoffersdependtoalargeextentonconsumerbehavior. To address this problem, either behavioral or service system design changes are needed. Changing human behavior and existing lifestyles contributes to the vision of sustainable development, but at the same time, it is an extremely difficult and time consumingprocess. A potentially easier way is changing the design of the productservice system to reduce behavioral pitfalls. In order to change system design, it is necessary to
understand how consumer acceptance of more sustainable solutions is formed, influenced or changed, what are the influencing factors and what are the leverage points for best results with lowest costs. Understanding consumer perceptions and behaviorinthiscontextiscrucial. 2.3CONSUMERRESEARCHINDIFFERENTDISCIPLINES A considerable body of literature in a range of different disciplines exists on consumption, consumer behavior, and consumer decisionmaking process. Research in economics, business, marketing, psychology and sociology domains studies consumer behavior from different theoretical premises: for economists, consumptionisusedtoproduceutility;forsociologists,itisameansofstratification; foranthropologistsamatterofritualandsymbol; for psychologists the means to satisfy or express physiological and emotional needs;andforbusiness,itisawayofmakingmoney(Fine1997). For more than a decade now, a range of studies that address environmentally sound consumer behaviour, e.g. car use, waste sorting, minimisation and recycling practices, have beenconducted. However, few studies evaluated consumer acceptance of the PSS concept a consumption based on nonownership of physical products, see, for example, studies on car sharing schemes (Schrader 1999; Meijkamp2000),skirentalandwashingservices(Hirschl,Konradetal.2001). Onereasonexplainingthelackofstudiesintheareacouldbethat,therearestillnot many PSS schemes in place to serve as test grounds. Another reason could be
uniformity of research focus. Most of consumer research focused on adopter categories, habits, attitudes and intentions, rather than on actually measuring the satisfaction level with the service. The reason is probably that PSS ideas have been promoted by researchers from the environmental management, marketing, design, andengineeringfields,andtoalesserextentbysociologists,whoholdthebannerof researchincustomersatisfaction. 2.4CONSUMERSATISFACTIONPROCESS The paramount goal of marketing is to understand the consumer and to influence buying behavior. One of the main perspectives of the consumer behavior research analyses buying behavior from the socalled information processing perspective" (HolbrookandHirschman1982). Accordingtothemodel,customerdecisionmakingprocesscomprisesaneed satisfying behavior and a wide range of motivating and influencing factors. The processcanbedepictedinthefollowingsteps(Engel,Blackwelletal.1995): Need recognition realization of the difference between desired situation and the current situation that serves as a trigger for the entire consumption process. Search for information - search for data relevant for the purchasing decision, both from internal sources (one's memory) and/or external sources.
Pre-purchase alternative evaluation - assessment of available choices that can fulfill the realized need by evaluating benefits they may deliver and reduction of the number of options to the one (or several) preferred. Purchase - acquirement of the chosen option of product or service. Consumption - utilization of the procured option. Post-purchase alternative re-evaluation - assessment of whether or not and to what degree the consumption of the alternative produced satisfaction. Divestment - disposal of the unconsumed product or its remnants. Besides the information processing perspective, marketing analyses consumer behaviour by employing a psychologically grounded concept of attitudes (Balderjahn 1988;Ronis,Yatesetal.1989;LuzarandCosse1998). It is consumer attitudes that are usually named as the major factor in shaping consumerbehaviourandawealthofstudiesisavailableonthetopicofhow attitudescanpredictbehaviour.
2.5INTERDISCIPLINARITYOFCONSUMERRESEARCH Different research disciplines diverge in their presuppositions about human nature, factorsinfluencingconsumerbehaviour,marketresponse,etc. Therefore, they naturally employdifferent research approaches. However, despite thatseeminglyinsurmountableabyssbetweendisciplines,weseethatmanyresearch topics and methods overlap, and that there is no clearcut line between different domainsofconsumerresearch.Manyconsumptionrelated issues are being increasingly addressed from interdisciplinary or multi disciplinary perspectives. Manyinterdisciplinaryconceptsandfactorsareofinterestforresearchonconsumer satisfaction with ecoefficient services and PSS. Contrary to the suggestions from many traditional neoclassical theories, consumption patterns are very flexible and pronetovariousinfluences. Today consumer behaviour is increasingly dynamic as the choice of alternatives increases with the growth of global markets. The complexity of the decisionmaking process and a large number of influencing factors suggest that changing consumer behaviour towards more sustainable consumption is a challenging process, which requirescoordinationatindividualandsocietallevel.
The area of PSS and ecoefficient services is still developing. Further efforts are required in order to understand relations between the functional and emotional needsofcustomers. 2.6DIFFERENTLEVELSOFCOMPLEXITY When evaluating satisfaction with a product, customers initially assess tangible features of the product. In the service context, the features, though observable, are considerably less tangible and are thus more difficult to assess. A product service system comprises four components (products, services, infrastructures, and networks), rendering the evaluation process of consumer satisfaction even more complex(Mont2000). Here the part of the system, with which the customer comes into direct contact, is larger than in the case of a pure product or service, which has implications for customer evaluation process. In the case of PSS or ecoservices, customers are exposedtobothdimensions:productandservice. In addition, due to closer relations with the service provider, customers can even become exposed to infrastructure and networks that support PSS delivery. Therefore, in the PSS context, an evaluation of all four PSS components becomes relevant:
Product evaluation is conducted by assessment of products or technologies. Person-based or other types of services (technical, information and knowledge services) that are included into PSS may be evaluated. Infrastructure can be evaluated when the customer comes into contact with enabling supporting technology, or by evaluation of ambient conditions, spatial layout or bye valuating signs and arte facts of the PSS. Networks, are not usually exposed to the customer, but in some cases may be evaluated when they come into contact with customers. 2.7 Factors influencing consumer buying behaviour of a product Kotler (2005) defined Consumer buying behaviour as the process by which information is received, selected, organised and interpreted by an individual. Some ofthefactorsthatinfluenceconsumerBuyingbehaviourofaproductinclude: Quality: this is one of the factors which consumers take into account when makingtheirchoiceofbrand.AccordingtoUggla(2001),qualityisanintegrals partofbrandidentity. Price: McDonald and Sharp (2000) stated that price can be used as a reason forbrandchoiceintwoways;eitherbygoingforthelowestpriceinorderto escape financial risk or the highest price in order to achieve product quality. According to sderlund (2000), price, place and brand are three important factorswhendecidingconsumerspurchasechoiceineverydayproduct.
Influence by others: according to Kotler et al (1999), influence by others plays a vital role in consumers decision processes. Consumers have the habit of consulting each other regarding a new product or brand and seeking their advice. The advices of other people have a strong affect on consumers buying behaviour. However, the degree of such affect depends on the situation or individual. Later adapters tend to be more influenced than early adapters. Influence by others cannot be sharpened by marketers. A buyer can also be influence culturally i.e. value, behaviour and preferences from family or other institution or socially i.e. by a small group like family or membership group. Purchase decision could also be influenced by attitude of others. For example, a consumer wants to buy MacLean, while in the shop he or she comes in contact with a friend who says Colgate makes my teethbrighter and whiter.TheconsumercanbeforcedtobuyColgate. Advertising: the main aim of advertisement is to create awareness. Advertisement is a conspicuous form of communication. According to Aaker (1991), if advertising, promotion and packaging embrace a regular positioning strategy over a period of time, there is the tendency that the brand will be strong. Some ways of reaching and communication to consumers through advertisingisthroughtelevision,cinema,radio,billboardetc. Packaging: this is the process of designing the cover of a brand/product. According to Kotler et al (1991), packaging is a form of advertisement in the sense that it sales duties such as attracting consumers, describing and selling theproduct.
Convenience:accordingtoLinandChang(2003),convenienceofabrandhasa significantaffectonconsumer.Inotherword,easyaccesstobrand/productin storeisvitalwhenbuyinglowinvolvementproduct. 2.7RESEARCHFRAMEWORKSANDMETHODS A great variety of methods and frameworks for understanding and evaluating consumeracceptanceandsatisfactionareusedindifferentdisciplines.Thestudyhas discussed the following frameworks: Kano model of customer satisfaction, the Innovation diffusion of Rogers, the service quality model of Grnsroos, and SERVQUALmodelbyParasuraman. The study has also surveyed a range of tools used for evaluating and measuring consumer satisfaction. These included surveys, indepth interviews, focus group interviews, observations, mystery shopping, and psychographic portrait of customers. A number of drawbacks and benefits pertaining to the tools have been pointed out and discussed. Both the research models and the tools, while diverse to a different extent,werefoundtobeusefulforapplicationinthePSSresearcharea. CONCLUSIONS The environmental impacts of ever increasing consumption throughout the world have been recently recognized. Many solutions have been proposed to combat the risinglevelsofconsumption.Oneoftheconceptssuggestedasapotentialsolutionto reduceconsumptionlevelsistheconceptofproductservicesystems(PSS).
Theconceptprovedtobeviableinthebusinesstobusinesscontext.However,inthe private consumer markets, it has been less successful, both in terms of economic viabilityandenvironmentalimpactreduction.Userbehaviourhasbeennamedasthe primaryreasonforthissituation. To address this problem, either behavioural or service system design changes are needed.Changinghumanbehaviourandexistinglifestylescontributetothevisionof sustainable development, but it proves to be an insurmountable task over a short periodoftime. Alternatively, changing the design of productservice system to reduce the behavioral pitfalls could be a potentially easier way towards sustainable development. Changing system design requires understanding how consumer acceptanceofmoresustainablesolutionsisformed,influencedorchanged,whatare the influencing factors and what are the leverage points for the best results with lowestcosts. Understandingconsumerperceptionsandbehaviourinthiscontextiscrucial. However,theconsumerdecisionmakingprocessismuchmorecomplexandintricate than just a simple decision about shifting from owning a product towards paying per useofit. Throughout this study we demonstrated that products are not seen purely for their functional features, but rather products are complex combinations of various
attributes, which, together with functionality, also bring status, serve as a key to a certainsocialclass,reinforceselfesteem,andmuchmuchmore. Therefore, the goal of this study was to take a step towards a better understanding of the complexity of the phenomena we are aiming to change. We did that by lookingathowdifferentdisciplinesperceivetheconsumptionprocessingeneraland theconsumerdecisionmakingprocessinparticular.
ChapterIII
COMPANYPROFILE
3.1COMPANYPROFILE
Pantaloon Retail (India) Limited, Headquartered in Mumbai (Bombay), is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. The company by 9th april 2009 operates over 11 million square feet of retail space, has over 1000 operational stores across 71 cities and towns and 65 rural locations in India and employs over 30,000 people. The company saw a 52 per cent increase in its total income from Rs 33.29 billion in FY200607toRs50.53billioninFY200708. The companys leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, FashionStation,allTop10,mBazaarandStarandSitara.Thecompanyalsooperates an online portal, futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a largeformat home solutions store, Collection I, selling home furniture products and EZone focused on catering to the consumerelectronicssegment. PantaloonRetailwasrecentlyawardedtheInternationalRetaileroftheYear2007by the USbased National Retail Federation (NRF) and the Emerging Market Retailer of theYear2007attheWorldRetailCongressheldinBarcelona.PantaloonRetailisthe flagship company of Future Group, a business group catering to the entire Indian consumptionspace.
3.2FUTUREGROUPMANIFESTO 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 andrelearnourabilitytoevolve. We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption becauseconsumption is development. Thereby, we will effect socioeconomic development for our customers,employees,shareholders,associatesandpartners. Our customers will not just get what they need, but also get them where, how and whentheyneed. Wewillnotjustpostsatisfactoryresults,wewillwritesuccessstories. WewillnotjustoperateefficientlyintheIndianeconomy,wewillevolveit. Wewillnotjustspottrends;wewillsettrendsbymarryingourunderstandingofthe Indianconsumertotheirneedsoftomorrow.Itisthisunderstandingthathashelped
us succeed. And it is this that will help us succeed in the Future. We shall keep relearning.Andinthisprocess,dojustonething. 3.3REWRITERULESANDRETAINVALUES GroupVision: Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumerinthemostprofitablemanner. GroupMission: Wesharethevisionandbeliefthatourcustomersandstakeholdersshallbeserved only by creating and executing future scenarios in the consumption space leading to economicdevelopment.
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,costconsciousandcommittedtoqualityinwhateverwedo. We shall ensure that our positive attitude, sincerity, humility and united determinationshallbethedrivingforcetomakeussuccessful. CoreValues: Indianness:confidenceinourselves. Leadership:tobealeader,bothinthoughtandbusiness. Respect&Humility:torespecteveryindividualandbehumbleinourconduct. Introspection:leadingtopurposefulthinking. Openness: to be open and receptive to new ideas, knowledge and information. ValuingandNurturingRelationships:tobuildlongtermrelationships. Simplicity & Positivity: Simplicity and positivity in our thought, business and action. Adaptability:tobeflexibleandadaptable,tomeetchallenges. Flow:torespectandunderstandtheuniversallawsofnature. 3.4LINESOFBUSINESS
Thecompanyispresentacrossseverallinesofbusinesswhichhavevarious formats(stores)lywood,TheDollarStore(JV)