Research Article: 2022 Vol: 26 Issue: 5
An Empirical Study on Customer Satisfaction towards Organized Retail Outlets In Bengaluru City, Karnataka
Gondesi Santhoshi Kumarai, Noble institute of Science and Technology
Parminder Kaur Bajaj, Jagan Institute of Management Studies
Sarita S Rana, Maharaja Surajmal Institute
Kethan, International Institute of Business Studies
Jaggaih, International Institute of Business Studies
Mahabub Basha S, International Institute of Business Studies
Venkateswarlu Karumuri, International Institute of Business Studies
Citation Information: Kumarai,G.S., Bajaj, P.K., Rana, S.S., Kethan, Jaggaih, Basha, S.M., & Karumuri, V.(2022). An empirical study on customer satisfaction towards organized retail outlets in Bengaluru city, Karnataka. Academy of Marketing Studies Journal, 24(S5), 1-11.
Abstract
Organized retailing is gradually drafting out its way and becoming as next booming industry with a meticulous transformation. But customer satisfaction has recognized as a prime factor in prioritizing consumers' future purchase intentions. Customer who are Delighted also likely to tell others of their favorable experiences and thus engage in positive or direct promotion of outlet. This paper depicts out the customer satisfaction towards organised retail outlets in north Karnataka. A total of 100 customers were virtually surveyed with a structured questionnaire. The results which are exposed from the study will help the managers of organised retail outlets to understand the factors that are related customer attitude and satisfaction. Where gender influences the shopping behaviour and leads to better insights for customer satisfaction. The study has provided an insight for the retail outlets on how the customer of Bengaluru north perceiving the satisfaction, loyalty of the store. The important factor which leads to increased loyalty at organised retailers is customer relationship with many supportive associations (Bonus/Loyalty Points/discounts).it is identified that there is an association between satisfaction and gender.
Keywords
Customer Attitude, Organized Retail Outlet, Customer Delightness.
Introduction
The introduction of internet has created a new market for both manufacturing and service providers. It has been playing an important role for around two decades; and today’s generation does not know a life without internet. This has made the world rest in our hands. Internet has been used as a marketing channel with which the consumers were introduced to a new trading pattern (Luterbacher & Allan, 1982). Present consumers are well aware about the economic surroundings due to the availability of information. Emerging trends of wider scope of expansion in this area has brought greater importance to internet in the modern era. It has now been a part and parcel of daily life all around the world (Jagadeesh Babu, 2020)
Some of the important factors affecting marketing are consumers are very keen about the quality of a product or services as they search for the very best quality, the mindset of consumers (Shaik et al., 2022).
To buy their Favorite brand and their involvement in purchase process, some people are cognizant about new trends, alternate choice of products or too many product, and consumers have the tendency to exhibit price and value (Prakash & Manyam, 2018).
Thus, internet has become the medium which has helped people lead a simpler life. It has helped people to discover new ways of doing the same things which where earlier done in a much complicated matter. This paper studies on behavior of consumers in marketing.
Consumer behavior is defined as the actions that consumers take while they are looking for, purchasing, utilizing, assessing, and discarding products and services that they believe will meet their requirements (Luthar & Cushing, 2002).We are all clearly one-of-a-kind individuals. Regardless of our differences, one of the most essential constants among us is that, above all, we are consumers (Alesina et al., 1993). Food, clothing, shelter, transportation, education, equipment, vacations, necessities, pleasures, services, and even ideas are all things we use or consume on a regular basis. We, as consumers, play a critical part in the local, national, and international economies. Our purchasing decisions have an impact on demand for fundamental raw materials, transportation, production, and banking; they have an impact on worker employment and resource deployment, as well as the success or failure of certain industries. Marketers must know everything they can about consumers in order to thrive in any business, especially in today's dynamic and fast shifting industry changing Consumption Patterns (Robert & John, 1982). Developing countries like India the market is very challenging where marketer has to tackle with changing pattern of consumption .Majority of the consumers in India are brand shifters by considering the value, which is the greater factor for a retailer to satisfy and delight the customer with better services and product offerings (Figure 1).
Figure 1 Consumption Behaviour
Literature Review
It is of the opinion that the argument was to fulfil the requirements of huge number of customers. And each time the marketers will understand precisely about the customers shopping requirements. This in turn may help the online service providers a better INSIGHT to deliver product of service as per the customer need. Suggested that Digital Shopping through “Wharton Virtual Test Marketing” is also on-going survey of internet. The Electronic commerce and online laboratory helps the customers to gauge reactions to new strategies and products which will automatically help the online CUSTOMERS to meet the challenges (Basha & Ramaratnam, 2017)
Established through this research work that seven attributes for store patronage: location, price, parking facility, quality of merchandise, ambiance, assortment, and friendly approach by staff. Outlined that consumer looks for travel cost such as petrol or parking charges while selection a location for shopping (Frey & Schneider,1982). It is Concluded in his study that behavior of shopping is dependent on three factors such as value for money, parking and opening hours. Narrated in his research work that convenience store attributes are location, knowledge of sales associates, product assortment, checkout speed, store provide precise definitions of service quality versus customer satisfaction (Schneider, 1984). They contend that service quality should not be confused with customer satisfaction, but that satisfaction is a positive outcome of providing good service. It provide empirical evidence at the customer, business-unit and firm- level that various measures of financial performance (including revenue, revenue change, margins, return on sales, market value of equity and current earnings) are positively associated with customer satisfaction. However, in the retail industry they find a negative relationship between satisfaction and profitability which may be because benefits from increased satisfaction can be exceeded by the incremental cost in retail. Find that customer satisfaction positively affects sales per labor hour at a chain of 46 retail stores. Basha et al., (2020) find a positive association between customer satisfaction at the company level and Tobin’s q (a long-run measure of financial performance) for department stores and supermarkets (Murthy et al., 2018).
Objectives of the Study
1. To analyse the determinants of customer satisfaction and Attitude in organised retail outlets in north Bangalore Karnataka.
2. To identify the behaviour of consumer and store attributes towards organised retail outlet.
3. To integrate the finding and suggestion’s suitable for retailing strategies.
Research Methodology
Research Design
Aim of this paper is to know about the customer satisfaction and factors influencing the retail customers of organised retail outlets in north Bangalore, Karnataka.
Area of Study
Survey is conducted among all class of customers who are the regular purchasers and occasional buyers in organised retail outlets in north Bangalore, Karnataka.
Survey Method
Primary data is collected in the form of structured questionnaire from all the respondents.
Sample Size
The sample study consist of 100 respondents, Samples collected from D-mart, Lulu Mart, Big Mart, SPAR, BIGBAZAR.
Sampling Technique
Stratified sampling technique
Data Usage
SPSS software was used to analyse the data and percentage analysis, Anova, Correlation, regression was drafted out (Tables 1-3).
| Table 1 Data Variables | |||
| Variable | Number of respondents | Percentage of respondent | |
| Gender | Male | 74 | 74 |
| Female | 26 | 26 | |
| Total | 100 | 100 | |
| Age | Below 30 y | 21 | 21 |
| Between 31-40 y | 66 | 66 | |
| Above 40y | 13 | 13 | |
| Total | 100 | 100 | |
| Education | Matriculation Graduate PG Total | 8 74 18 100 | 8 74 18 100 |
| Occupation | Profession Householder Business Service Total | 57 20 18 5 100 | 57 20 18 5 100 |
| Annual Income | Less than 300000 Rs 3000001-500000 Above 500000 Total | 22 65 11 100 | 22 65 11 100 |
| Table 2 R Square | |||||||||
| R. | R Square | Adjusted R Square | Std.Error of the Estimate | R.Sqaure Change | F Change | Df 1 | Df 2 | Sig.F change | DW/stat |
| .302 | .136 | -0.17 | 2.10805 | .155 | .995 | 18 | 81 | .483 | 1.90 |
| Table 3 Model Confidence Beta | |||||||
| Model | Unstandardized coefficients B Std.Error | S-coefficients Beta | t | Sig | Confidence Interval for B | ||
| LB | UB | ||||||
| Constant | 1.944 | 2.571 | 756 | .452 | -3.171 | 6.058 | |
| -.781 | .673 | ||||||
| Quality of Product | .091 | .438 | .024 | 208 | .836 | .044 | 1.339 |
| Value for Money Innovative /Upgraded product Options for product selection | .0681 -.548 -.082 | .320 .288 . 243 | 278 -.247 -.040 | 2.126 -1.899 -.338 | .037 .061 .736 | -1.122 -.567 -1.222 | .019 .301 .105 |
| Reasonable | -.542 | .375 | -.175 | -1.443 | .153 | -.562 | 1.093 |
| Affordable | .475 | .310 | .191 | 1.531 | .130 | -1.189 | .334 |
| Retail outlet Location | .030 | .254 | .014 | .118 | .906 | -.122 | .518 |
| Parking | .027 | .297 | .010 | .090 | .928 | -.375 | .444 |
| Atmosphere of outlet | -.013 | .286 | -.006 | -.044 | .965 | -.465 | 718 |
| Credit facility | -.094 | .269 | .100 | .838 | .404 | -.381 | .331 |
| Discounts | -.178 | .291 | -.039 | -.351 | .727 | -.222 | .252 |
| Coupons | .138 | .228 | .069 | -.573 | .568 | -.529 | 397 |
| Loyalty Points | .032 | .262 | .014 | -.612 | .542 | -.437 | .492 |
| Sales person Attentiveness | .542 | .278 | .223 | 603 | .050 | -.457 | 1.089 |
Period of Study
The study was conducted between September–October 2021.
Scope of Study
The study is wide which deals with customer satisfaction towards organised retail outlet and deals with store attributes, problems faced by retailers, Promotion tools, and Merchandising display (Murthy et al., 2018) (Table 2).
Attributes Considers for the Study
Price factors, merchandising display, Promotional Strategies, after sales service.
Data Variables
Income levels, Occupation, Age, family size, Data is related to primary and secondary. Population of the study is retail customers of North Bengaluru (Table 1).
Interpretation
The above table with regression analysis of age towards organised retail outlet with a regression value of .302 & estimated R square is .136.Value of f statistics 0.995 with a significant value of 0.483.from the above analysis we can conclude that there is no significant relationship between age and retail outlet dimension (Tables 4 and 5).
| Table 4 Relationship Between Gender and Organised Retail Formats | |||||||
| R | R Square | Adjusted R Square | Std.Error Of the Estimate | Change Statistics | |||
| .364 .115 .031 .33196 | R Square Change | F change | Sig.F Change | DW Value | |||
| .215 | 1.363 | .245 | 2.440 | ||||
| Table 5 Beta Coefficients | |||||||
| Model | Unstandardized coefficients B Std.Error | S- coefficients Beta | t | Sig | Confidence Interval for B | ||
| LB | UB | ||||||
| Constant | 1.576 | .572 | 2.795 | .003 | .519 | 3.651 | |
| -.231 | .127 | ||||||
| Quality of Product | .041 | .070 | .075 | -.573 | .685 | .081 | .180 |
| Value for Money Innovative /Upgraded product Options for product selection |
.059 -.003 -002 |
.090 .088 .043 |
.095 -.005 .004 |
.748 -0.36 .040 |
.457 .971 .968 |
-.120 -.097 -270 |
.115 .101 .037 |
| Reasonable | -.214 | .075 | -.178 | -1.55 | .134 | -.057 | .196 |
| Affordable | .079 | .064 | .132 | 1.930 | .278 | -.123 | .084 |
| Retail outlet Location | -.030 | .058 | -.043 | -.381 | .704 | -.073 | .170 |
| Parking | .049 | .055 | .088 | .889 | .427 | -.161 | .072 |
| Atmosphere of outlet | -.044 | .059 | -.094 | -.250 | .450 | -.133 | .103 |
| Credit facility | -.015 | .069 | -.029 | -3.172 | .803 | -.284 | -.065 |
| Discounts | -.171 | .091 | -.431 | -1.074 | .001 | -.156 | .047 |
| Coupons | .089 | .047 | .-.124 | -.499 | .286 | -.098 | .148 |
| Loyalty Points | .049 | .054 | .212 | -1.900 | .619 | -.004 | .182 |
| Sales person Attentiveness | .011 | .047 | .022 | .155 | .860 | -.103 | .124 |
Interpretation
The above table with regression analysis between Gender and organised retail outlet with a regression value of .364 & estimated R square is .115 .Value of f statistics 1.363 with a significant value of 245.with this we can conclude that gender of the respondents and retail formats are independent factors (Tables 6 and 7).
| Table 6 Relationship Between Education of Customer and Organised Retail Formats | |||||||
| R | R Square | Adjusted R Square | Std.Error Of the Estimate | Change Statistics | |||
| 0.388 0.190 -.023 0.50793 | R Square Change | F change | Sig.F Change | DW value | |||
| 0.158 | 0.855 | 0.745 | 2.034 | ||||
| Table 7 Quality of Products | |||||||
| Model | Unstandardized coefficients B Std.Error | S- coefficients Beta |
t | Sig | Confidence Interval for B | ||
| LB | UB | ||||||
| Constant | 1.592 | .622 | 2.560 | .013 | .354 | 2.829 | |
| Quality of Product | -095 | .106 | -.065 | -.892 | .355 | -.305 | .116 |
| Value for Money | -.072 | .077 | .095 | -.928 | .225 | -.226 | .082 |
| Innovative /Upgraded | -.067 | .070 | -.005 | -.988 | .337 | -.206 | .071 |
| product | .096 | .059 | .005 | 1.635 | .050 | -.021 | .213 |
| Options for product selection | .133 | .091 | -.178 | 1.462 | .148 | -.048 | .314 |
| Reasonable | .087 | .061 | .132 | 1.164 | .248 | -.068 | .237 |
| Affordable | .082 | .072 | -.043 | 1.399 | .184 | -.188 | .204 |
| Retail outlet Location | -.017 | .069 | .088 | -.239 | .813 | -.180 | .126 |
| Parking | -.051 | .070 | -.094 | -.731 | .467 | -.168 | .087 |
| Atmosphere of outlet | -.040 | .065 | -.029 | -.575 | .567 | -.130 | .099 |
| Credit facility | -.039 | .060 | -.341 | -.600 | .550 | -.096 | .090 |
| Discounts | -.011 | .070 | -.125 | -.179 | .858 | -.101 | .109 |
| Coupons | .044 | .055 | .066 | .629 | .531 | -.097 | .184 |
| Loyalty Points | .007 | .067 | .313 | .166 | .868 | -.076 | .119 |
| Sales person Attentiveness | .037 | .018 | .020 | 0.92 | .583 | -016 | .171 |
Interpretation
The above table with regression analysis between education of customer and organised retail outlet with a regression value of .388 & estimated R square is .158.Value of f statistics .855 with a significant value of 745.D-Value 2.034.From this analysis we can conclude that there is no significant relationship between Education of customer and its impact on retail outlet formats (Tables 8 & 9).
| Table 8 Influence of Customer Occupation on Organised Retail Outlets | |||||||
| R | R Square | Adjusted R Square | Std. Error Of the Estimate | Change Statistics | |||
| 0.403 0.163 -.023 0.94606 | R Square Change | F change | Sig.F Change | DW Value | |||
| 0.163 | 0.875 | 0.609 | 1.972 | ||||
| Table 9 Unstandardized Coefficient | |||||||
| Model | Unstandardized coefficient B Std. Error | S- coefficien ts Beta | t | Sig | Confidence Interval for B | ||
| LB | UB | ||||||
| Constant | 1.604 | 1.154 | |||||
| Quality of Product | .365 | .197 | .217 | 1.390 | .168 | -.693 | 3700 |
| Value for Money | .002 | .144 | .002 | 1.858 | .050 | -.026 | .757 |
| Innovative /Upgraded | -.051 | .130 | -.051 | .012 | .990 | -.284 | .288 |
| product | .-025 | .109 | -.027 | -.390 | .698 | -.308 | .207 |
| Options for product selection | -.231 | .169 | -.166 | -.226 | .822 | -.242 | .193 |
| Reasonable | .143 | .139 | .129 | -1.368 | .175 | -.566 | .105 |
| Affordable | .095 | .114 | .096 | 1.029 | .307 | -.134 | .421 |
| Retail outlet Location | -.044 | .133 | -.037 | .831 | .409 | -.132 | .321 |
| Parking | .084 | .128 | .084 | -.326 | .745 | -.309 | .222 |
| Atmosphere of outlet | .076 | .130 | .070 | .654 | .515 | -.171 | .339 |
| Credit facility | .039 | .121 | .036 | .584 | .561 | -.183 | .334 |
| Discounts | .107 | .112 | .116 | .320 | .751 | -.202 | .279 |
| Coupons | -.155 | .131 | -.136 | .962 | .339 | -.115 | .329 |
| Loyalty Points | -.075 | .103 | -.084 | -1.187 | .239 | -.415 | .105 |
| Sales person Attentiveness | -.024 | .125 | -.022 | -.194 | .468 | -.279 | .129 |
Interpretation
The above table of regression analysis represents there is no significant relationship between occupation and retail outlet format of influence .The calculated regression value is 0.403 and the r square 1.63 and the F statistics 0.875 (Tables 10 and 11).
| Table 10 Relationship Between Respondents Income and Organised Retail Format | |||||||
| R | R Square | Adjusted R Square | Std.Error Of the Estimate | Change Statistics | |||
| .413 .171 -.014 .64403 | R Square Change | F change | Sig.F Change | DW- value | |||
| 0.171 | 0.926 | 0.551 | 1.645 | ||||
| Table 11 Ratail Product | |||||||
| Model | Unstandardized coefficient B Std.Error | S- coefficients Beta | t | Sig | Confidence Interval for B | ||
| LB | UB | ||||||
| Constant | 1.438 | .786 | 0.71 | -.125 | 3.001 | ||
| Quality of Product | .099 | .134 | .086 | 1.830 | .464 | -.168 | .365 |
| Value for Money | .029 | .098 | .039 | .736 | .766 | -.166 | .224 |
| Innovative /Upgraded | .019 | .088 | .028 | .298 | .832 | -.157 | .194 |
| product | .007 | .074 | .011 | .212 | .925 | -.141 | .155 |
| Options for product | -.127 | .114 | -.133 | .094 | .273 | -.355 | .102 |
| selection | -.018 | 096 | -.024 | -1.103 | .847 | -.207 | .170 |
| Reasonable | -.104 | .066 | -.154 | -.193 | .184 | -.258 | .050 |
| Affordable | .064 | .089 | .080 | -1.341 | .484 | -.177 | .245 |
| Retail outlet Location | .114 | .077 | .166 | -.855 | .196 | -.060 | .287 |
| Parking | -.076 | .088 | -.102 | -.877 | .395 | -.252 | .100 |
| Atmosphere of outlet | -.072 | .082 | -.097 | -.262 | .383 | -.236 | .091 |
| Credit facility | -.020 | .076 | -.037 | 2.878 | .794 | -.171 | .131 |
| Discounts | -.256 | .089 | -.328 | -.346 | .005 | -.079 | .433 |
| Coupons | -.024 | .070 | -.040 | .354 | .730 | -.163 | .115 |
| Loyalty Points | -.030 | .085 | -.040 | .026 | .979 | -.139 | .161 |
| Sales person Attentiveness | .002 | .080 | .003 | -.133 | .895 | .157 | .043 |
Interpretation
The above table of regression analysis represents there is no significant relationship between income of the customer and retail outlet format of influence .The calculated regression value is 0.413 and the r square 0.17 and the F statistics 0.926.
Observations of the Study
1. There is no relationship between age of the respondents and their satisfaction level towards organised retail format.
2. There is no relationship between the gender of the respondents and their satisfaction towards organised retail format.
3. No significant relationship between Educational qualification of customers and retail organised format.
4. No significant relationship between the frequency of shopping per month of respondents and their level of satisfaction towards organised retail format.
5. There is no close relationship between favorite days of shopping of respondents and the level of satisfaction towards retail format.
6. There is no significant relationship between shopping preference of customers and satisfaction towards organised retail format.
7. No close relationship between preference shopping hours and level of satisfaction towards retail organised retail formats.
Suggestions
1. Majority of customers are younger generation, retailers has to develop new marketing strategy in relation with branding and availability.
2. Retailers has to understand the behaviour of married customers and bachelor for better merchandising.
3. Segmentation need to be done efficiently to analyse the shopping behaviour and implementation of marketing mix.
4. IMC need to be drafted out (Promotional aspects, Discounts, coupons, after sales service).
Conclusion
The study has provided an insight for the retail outlets on how the customer of Bengaluru north perceiving the satisfaction, loyalty of the store. The important factor which leads to increased loyalty at organised retailers is customer relationship with many supportive associations (Bonus/Loyalty Points/discounts).it is identified that there is an association between satisfaction and gender. Where gender influences the shopping behaviour and leads to better insights for customer satisfaction.
Compliance with Ethical Standards
Disclosure of potential conflicts of interest: As we authors declaring that, we don’t have any conflicts of interest.
On Behalf of All Authors, the Corresponding Author States that there is No Conflict of Interest. Research involving human participants and/or animals: There were no animals / humans participants in this study. Informed consent: consist of 100 respondents, Samples collected from D-mart, Lulu Mart, Big Mart, SPAR, and BIGBAZAR.
Funding Details
There is no funding for research activity.
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Received: 18-May-2022, Manuscript No. AMSJ-22-12040; Editor assigned: 20-May-2022, PreQC No. AMSJ-22-12040(PQ); Reviewed: 03-Jun-2022, QC No. AMSJ-22-12040; Revised: 24-Jun-2022, Manuscript No. AMSJ-22-12040(R); Published: 01-Jul-2022