expectations & perceptions on big bazaar

International Research Journal of Management Sociology & Humanities

ISSN 2277 – 9809 (online) ISSN 2348 - 9359 (Print)

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IRJMSH Vol 6 Issue 11 [Year 2015] ISSN 2277 – 9809 (0nline) 2348–9359 (Print)

Customer Expectation and Satisfaction: A Case Study of Big Bazaar Retail

Store in Baroda

Mr. Dignesh S. Panchasara Research Scholar,

Department of Commerce and Business Management,

Faculty of Commerce,

The Maharaja Sayajirao University of Baroda.

Abstract

Dr. Umesh R. Dangarwala Head of the Department,

Department of Commerce and Business Management,

Faculty of Commerce,

The Maharaja Sayajirao University of Baroda.

Customer satisfaction always helps to enhance the market share. In consumer

goods industry various parameters are available to judge the satisfaction of

customer towards the product, but in the case of service industry only quality of the

service derives the level of satisfaction. This study attempt to identify the

expectations and satisfactions towards the Big Bazaar store at Baroda with the help

of service quality dimensions. For the purpose of study 100 samples are considered

to pool up the opinions by structured questionnaire. The study results that the

satisfaction level towards Big Bazaar is positive but the expectation level is greater

than as compared to satisfaction level.

Keywords: Service quality dimensions, customer expectation, customer satisfaction, Big Bazaar.

1.1 INTRODUCTION Retail industry provides immense opportunities to entrepreneurs and workforce as sales

people and clerks, the industry also has opportunities for people interested in determining

what goods will be sold, getting these goods to the right place at the right time, and

managing the operations, finances, and administrations of retails companies. Retailing is

such a common part of our everyday lives that we often just take it for granted. Retail

managers make complex decisions in selecting their target markets and retail locations;

determining what merchandise and services to offers; negotiating with suppliers;

distributing merchandise to stores; training and motivating sales associates; and deciding

how to price, promote, and present merchandise. Considerable skill and knowledge are

required to make these decisions effectively. Working in this highly competitive, rapidly

changing environment is both challenging and exciting, and it offers significant financial

rewards. The distribution of finished products begins with the producer and ends at the

ultimate consumer. Between the two of them there is a middle person – the Retailer.

Retailing is defined as a set activities or sell a products or a service to consumers for

their personal or family use. It is responsible for matching individual demands of the

consumer with supplies of all the manufacturers. The word “RETAIL” is derived from

the French word Retaillier, meaning “ to cut a piece of ” or “ to break bulk. ” of t en

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people think of retailing only as the sale of products in the stores, but retailing also

involves the sale of services such as overnight loading in a motel, a haircut, a DVD

rental, or a home-delivered pizza. Not all retailing is done in stores. Examples of non-

store retailing in products sales are Flipkart.com, Amazon.com, Snapdeal.com, etc. and

for services Bookmyshow.com, Redbus.com, Justdeal.com, cartrade.com etc.

The world over retail business is dominated by small family-run chains and regionally

targeted store. Gradually more and more markets in the western world are being taken

over by billion-dollar multinational conglomerates, such as Wal-Mart, Sears,

McDonald’s, marks and Spencer, etc. The larger retailer have set up huge

supply/distribution chain, inventory, management systems, financing pacts, and wide-

scale marketing plans which allowed them to provide better services at competitive

prices by achieving economies of scale. In an era of globalization, liberalization, and a

highly aware customer, a retailer is required to make a conscious effort to positon himself

distinctively to face the competition. This is determined to a great extent by the retail mix

strategy followed by a company to sell its products.

1.2 Retail Industry in India: In India, the retail sector is the second largest employer after agriculture. It is highly

fragmented and consists predominantly of small, independent, and owned- managed

shops. Besides, the country is also dotted with low-cost kiosks and pushcarts. There are

some 12 million retail outlets of which nearly 5 million sell food and related products.

Valued at US$511 billion according to leading commercial real estate advisor, C.B.

Richard Ellis’ finding in 2008, the Indian retail market is the fifth largest retail

destination globally. More and more players are venturing into the retail business with

new and attractive formats, such as malls, supermarkets, discount stores, departmental

stores, transforming altogether the traditional bookstores, chemist shops, and furnishing

stores. According to industry estimates, the Indian retail market is estimated to grow from

US$330 billion in 2007 to US$ 427 billion by 2010 and US$637 billion in 2015.

Simultaneously, organized retail which at present accounts for 4 percent of the total

market is likely to increase its share to 22 percent by 2015. The 30 million sq. ft. of

available mall space in India at present is expected to increase to 100 million sq. ft. by

2010, estimates that the number of operational malls will more than double to over 412

with 205 million sq. ft. by 2013, and further 715 malls by 2015 on the back of major

retail developments ever in tier II and tier III cities. At presents 40 percent of malls are

concentrated in the smaller cities.

1.3 The SERVQUAL Model: A customer will be satisfied only when his/her expectations will be met, so in the year

1988 Parasuraman’s et al developed a model to measure the expectation towards any

service, which is named as a SERVQUAL model. In the context of retail service the

model is based on following five dimensions:-

1. Reliability dimension is concerned with the store’s ability to perform the service accurately and dependably.

2. Responsiveness dimension is related with the employees’ willingness to help customers

and provide prompt services.



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3. Assurance dimension includes Employees’ knowledge, courtesy and their ab ility to inspire trust and confidence.

4. Empathy dimension is related with Caring, individualized attention given to customers or

the ease of access, approachability and effort taken to understand customers’

requirements.

5. Tangibles dimension is all about the appearance of the physical facilities and material relayed at retail outlet.

The difference between the customer’s expectation & satisfactions helps retailer to improve the service which enhances the customers’ satisfaction.

1.4 Big Bazaar:

Big Bazaar is the largest hypermarket chain in India. Mr. Kishore Biyani as its group

CEO and MD, headquartered in Mumbai. Big Bazaar was launched in September, 2001.

With opening of its first four stores in Kolkata, Indore, Bangalore, and Hyderabad.

Currently, there are 214 stores across 90 cities and town in India covering around 16

million sq. ft. of retail space. Big bazaar was launched mainly as a fashion format selling

apparel, cosmetics, accessories and general merchandise. Over the years, the retail chain

has included in its portfolio a wide range of products and services, ranging from grocery

to electronics. In Bangalore city alone, there are 12 branches. Moreover, the customer

friendly ambience and the organized retailing of products also make Big Bazaar one of

the successful retail companies in India. It offers all time discounts and promotional

avenues to its customers.

2.0 REVIEW OF LITERATURES

Dr. Jay Prakash Verma (Jan-2015) found that in Consumer Behaviour for Organized

Retail: A Case Study of Big Bazaar, rise in income of the consumers along with the effect

of modern culture the purchasing power of the people has increased. Shopping has

become more and entertainment than a utility aspect for people. It also reflects that

occupation and income of the consumers has greater impact on the frequent visit of them

to organized retail outlets like big bazaar. Apart from store ambience features like

service, cost and availability of products drag the interest of the consumers that induce

the preference to shop at big bazaar.

Dharmesh Motwani (2014) conclude that (in An Empirical Study of Customer

Expectation and Perception in Organized Retail sector) Service quality is an important

aspect for retailers to know about customers’ satisfaction & SERVQUAL model is the

root way to measure the effectiveness of service quality. In this paper gap has been

identified between expectation & perception of customers towards the organized retail

outlets of Udaipur, which revealed dissatisfaction among customers.

Prof Vineeta Gangal (April 2013) conclude that (in Big Bazaar: A Study of Consumer

Behaviour towards Organized Retail) Big Bazaar is preferred by its patrons for its pricing

strategies followed by variety. One of the major reasons for this is the high proportion of

students and youngsters who are dependent on their parents for their incomes. Big Bazaar

and their close competitors would be maintain status quo on pricing and increase variety

of products, especially in the clothing and food & grocery department, because that is

where the highest amount of sales are happening.”



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U. Dineshkumar, P.Vikkraman (2012) found in their study that “organized retail outlets

provide better quality of service, product range as compared to the unorganized retail

outlets. Most of the customers are satisfied with the quality of service provided by the

organized retail outlets.”

Kumar.R & Barani (2012) said that “service quality has long been accepted as the most

basic marketing tool for retailers to differentia te their retail offers, create competitive

advantage and to enhance the customers’ shopping experience. Nonetheless, maintaining

excellent service quality within the stores is no simple task”

Azhagan & Nagarajan (2011) analysed that “most of the customers prefer Organized

Retail sector because of more Tangibles and Empathy towards its customers. In order to

retain and attract new customers, the organized retail sector should improve customer’s

service level and should provide assurance towards its customer.”

3.1 RESEARCH METHODOLOGY

3.2 Objectives of the Research Study: i. To study the consumer expectations and satisfactions of Big Bazaar Store in Baroda.

ii. To learn and understand the important factors of the satisfying consumers.

iii. To check the significance of difference between customer’s expectations and

satisfactions.

iv. To suggest measures for improving the quality and efficiency of Big Bazaar Store.

3.3 Sources of Information: The research was made by use of both Primary Data as well as Secondary Data. The

primary data was collected from the customers of the Big Bazaar. The secondary data

was collected from publishing by search engine, newspapers, books, magazines, journals,

websites and other relevant information.

3.4 Scope of the Research Study: This research study provides suggestions on improving the standard, services and quality

of the Big Bazaar Store. This research study helps to understand the Consumers

expectations and satisfactions towards Big Bazaar services. The study aims on buying

decisions selected respondents from the consumer of Big Bazaar in Selected city called

Baroda.

3.5 Sample Size & Research Design:

The data is obtained from the customer survey. The survey is carried out in Big Bazaar store located at Baroda and a sample size of this study was 100 respondents from the population selected randomly.

4.0 DATA ANALYSIS

4.1 Demographic Profile of Respondents Table-1

Particulars Classifications Frequency Percentage

Gender

Male 54 54

Female 46 46

15-25 37 37



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Age Group

26-35 18 18

36-45 28 28

46-55 13 13

56 & Above 4 4

Marital Status

Married 59 59

Unmarried 41 41

Types of

Family

Nuclear Family 57 57

Joint Family 43 43

Occupations

Student 33 33

Housewife 19 19

Self-employed 25 25

Salaried 23 23

Others 0 0

Number of

Earning Person

in Family

One 43 43

Two 29 29

Three 16 16

Four 7 7

Five & More 5 5

Avg. Annual

Income

Up to 1lac 10 10

1 Lac to 2 Lac 21 21



4 Lac & above 30 30

(Source: Primary Data) Interpretation:

As per shown in above table demographic profile of respondents were classified

according to their gender, age group, marital status, types of the family, occupations,

number of earning person in family and average annual income. Out of total 100

respondents 54% are male and rests are female. As categorised by age group 28% are

comes from 36-45 age group. Majority of respondents are married (59%) and 57%

respondents belongs to nuclear family. The table shows that the 33% of the respondents

are students, 19% of the respondents are the housewives, 25% are the self-employed and

rest of the 23% respondents are salaried. Most of the families had only one earning

person, its 43% of the total respondents. 24% of the total respondents earn yearly 2 Lac to

3 Lac.

4.2 Buying Behaviour of Respondents

Table-2 Particulars Classifications Frequency Percentage

Influence of

Buying

Decision

Yourself 49 49

Spouse 14 14

Children 13 13

Parents 24 24

Others 0 0

Visiting Time

Once 21 21

Twice 13 13

Three 3 3



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in a Month Four 7 7

As per the Requirements 56 56

Purpose to

Visit

Big Bazaar

Discounts & Offers 61 39

Availability of Products 35 22

Availability of Brands 20 13

Variety of Products 42 26

Others 0 0

Avg. monthly

purchase at Big

Bazaar

Less than 500rs. 21 21

500-1000rs. 13 13

1000-2000rs. 31 31

2000-4000rs. 18 18

More than 4000rs. 17 17

Mode of

Payment

Cash 77 72

Debit card 20 19

Credit card 10 9

Shopping

Experience

Excellent 25 25

Good 53 53

Average 19 19

Bad 3 3

Available

Specific Brands

Yes 66 66

No 13 13

Can’t Say 21 21

More Time

Spent in

Sections while

shopping

Home appliances 43 22

Clothing 56 28

Electronics 16 8

Children & Toys 14 7

Sports 9 5

Food 59 30

(Source: Primary Data) Interpretation: From the above table, we can say that most of the respondents are independent (49%) for

decision making while the 24% is depending on their parents. Most of the respondents

(56%) are visiting the store as per their requirements of the shopping. The 39% of the

total respondents visits the store to get better discounts and offers while 26% respondents

go for the variety of the products. Out of all respondents 31% respondents spent Rs. 1000

to 2000 of their monthly budgets. Majority of respondents (77%) made their payment by

cash. The experience while shopping of the respondents is good, by 53%. 66%

respondents are satisfied by specific brands availability. Out of the respondents, 30%

spent their time in food section, 28% are spent in clothes and 22% spent in home

appliances.

4.3 Customer’s Expectation and Satisfaction towards Service Quality

This part included the analysis on the basis of five dimensions of the service quality i.e. tangibility, reliability, responsiveness, assurance, and last one is empathy.

The degree of expectation & satisfaction towards service quality of Big Bazaar outlet was set from 1 to 5 ranks. (5 denotes the highest expectation/satisfaction, whereas, 1 is the lowest expectation/satisfaction).

In addition following criteria is used for analysis part:-

The score among 1.00-1.80 mean lowest expectation/satisfaction.



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The score among 1.81-2.61 mean low expectation/satisfaction.

The score among 2.62-3.41 mean average expectation/satisfaction.

The score among 3.42-4.21 mean high expectation/satisfaction.

The score among 4.22-5.00 mean highest expectation/satisfaction.

4.3.1 Customer’s expectation and satisfaction towards Reliability Dimension.

Table-3

Reliability Level of

Expectation Level of

Satisfaction

Mean Quality

Gap Score Mean Level Mean Level

Big Bazaar provides services as promised. 3.72 High 3.38 Average -0.34

Big Bazaar provides services at right time. 3.72 High 3.52 High -0.20

Big Bazaar has the merchandise available when customers want it.

3.95 High 3.68 High -0.27

Big Bazaar has batter & fast billing system.

3.87 High 3.52 High -0.35

Overall Mean Score 3.81 High 3.52 High -0.29

(Source: Primary Data)

Interpretation:

Table shows that for all the parameters under “Reliability” dimension customer’s

expectations are at high level, and the situation in level of satisfaction is same excluding

one parameter where satisfaction is average. Overall expectation of the customers in

“Reliability” dimension is high (3.81) and satisfaction towards this dimension is at high

level (3.52). All the mean quality gap scores are negative (-0.29) which shows the

inefficiency of the store towards this dimension.

4.3.2 Customer’s expectation and satisfaction towards Responsiveness Dimension.

Table-4

Responsiveness Level of


Satisfaction

Mean Quality Gap Score Mean Level Mean Level

1. Employees of Big Bazaar are willing to help

you every time.

3.69 High 3.49 High -0.2

2. Employees of Big Bazaar give prompt

services.

3.71 High 3.57 High -0.14

3. Employees of Big Bazaar are able to handle

customer complaints directly and immediately.

3.66 High 3.36 Average -0.3

4. Employees of Big Bazaar gives correct

information when services provided.

3.94 High 3.71 High -0.23





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Interpretation:

From the above table it is clear for all parameters under “Responsiveness” dimension

customers expectations are at high level and the satisfaction level is also at high level

excluding only one parameter. Overall the customers’ expectation and satisfaction is at

high level i.e. 3.82 and 3.53 respectively. The overall mean quality gap score is -0.29, and

all the parameters under this dimension are negative. It shows that the overall expectation

is high as compare to satisfaction level.

4.3.3 Customer’s expectation and satisfaction towards Assurance Dimension.

Assurance Level of

Expectation

Level of

Satisfaction

Mean Quality


Employees of Big Bazaar are courteous with

customers.

3.68 High 3.53 High -0.15

Employees of Big Bazaar are well qualified

and perform the jobs accurately.

3.59 High 3.45 High -0.14

Employees of Big Bazaar are trustworthy 3.94 High 3.70 High -0.24

Employees of Big Bazaar have sufficient

product knowledge.

3.95 High 3.80 High -0.15


Interpretation:

Table-5


Table shows that for all parameters under “Assurance” dimension customers’ expectations

and satisfactions are at high level i.e. 3.79 for expectations and 3.62 for satisfactions. The

mean quality gap score of all the parameters are negative. The overall mean quality gap score

is -0.17 which shows that the improvement required to this dimension.

Empathy Level of


Satisfaction

Mean Quality Gap Score Mean Level Mean Level

Big Bazaar has Provide the operating hours convenient to all their customers.

3.71 High 3.78 High 0.07

Employees of Big Bazaar give personal

attention to customers.

3.62 High 3.37 Average -0.25

Employees of Big Bazaar understand the need

of the customers.

3.84 High 3.74 High -0.1




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4.3.4 Customer’s expectation and satisfaction towards Empathy Dimension.

Table-6

(Source: Primary Data) Interpretation:

It can be seen from the above table that all three parameters under “Empathy” dimension the expectations are at high level while the level of satisfactions only one is at average level (3.37). Overall expectations and satisfactions of the customers’ are at high level i.e.

3.73 and 3.63 respectively. Customers’ are happy with the operating hours of the store,

which we can see at the difference of the expectations and satisfactions level i.e. positive

(0.07). The overall mean quality gap score is -0.1 which shows that employees of the

store are not giving personal attention and not understand the needs of the customers.

4.3.5 Customer’s expectation and satisfaction towards Tangibility Dimension.

Table-7 Tangibility Level of

Expectation

Level of

Satisfaction

Mean Quality


Big Bazaar has modern equipment & fixtures. 3.70 High 3.56 High -0.14

Physical facilities are sufficient.

(rest room, trial room)

3.74 High 3.69 High -0.05

Big Bazaar has convenient parking for

customers.

3.81 High 3.75 High -0.06

Big Bazaar has sufficient moving place.

(with Trolley)

4.10 High 3.61 High -0.49

Big Bazaar is clean and hygiene. 3.84 High 3.42 High -0.42

Location of the store is convenient. 3.82 High 3.69 High -0.13



Interpretation: From the above table that all parameters under “Tangibility” dimension customers’

expectations and satisfactions are at same level. Overall expectation and satisfaction of

the customers’ concerning this dimension is high i.e. 3.83 and 3.62 respectively. All the

mean quality gap scores are negative, which shows customers are not satisfied at this

dimension and the overall gap score is -0.21. This means the improvement required in

this dimension.

4.4 Hypothesis Testing:

Following hypothesis has been tested:

H0: There is no significant difference between the mean scores of Expectation & Satisfaction for dimensions under study.



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Table-8

Attributes Mean X2

Value Table Value

Reliability

Expectation 3.81

0.992

32.0

Satisfaction 3.52

Responsiveness

Expectation 3.82

Satisfaction 3.53

Assurance

Expectation 3.79

Satisfaction 3.62

Empathy Expectation 3.73

Satisfaction 3.63

Tangibility Expectation 3.83

Satisfaction 3.62

(Level of significance is 5%) (Source: Primary Data)

Table shows that calculated value of chi-square test is less than the tabulated value, hence null hypothesis is accepted, which proves that there is no significant difference between the mean score of the Expectation & Satisfaction for dimensions under study.

5.0 SUGGESTIONS

The Big Bazaar store of Baroda can take following actions to improve the Satisfaction

level of the customers.

Employees are not willing to help customers, and courtesy to provide promised services,

it is advised to train them to make them positive in their attitude towards customers.

Employees of the store should try to give personal attention to customers.

Availability of physical facilities should be improved.

Big Bazaar store should provide large parking space for its customers so that they can

easily park their vehicles. The parking place nowadays is most attractive element.

6.0 CONCLUSION Customer satisfaction is secret code for the success in business, therefore in this study the

researcher analyses satisfaction level of each dimension. Thus, though customer

satisfaction does not guarantee repurchase on the part of the customers but still it plays a

very important part in ensuring customer loyalty and retention. Therefore, organizations

should always strive to ensure that their customers are very satisfied. And this study it is

founded that the customers are not satisfied as customers expected. In this paper the gap

has been identified between expectation and satisfaction towards Big Bazaar store. The

gap can be easily removed by improving the service quality.

------------

References:

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2. Dharmesh Motwani. (2014), an empirical study of customer expectation and perception in organised

retail sector, National monthly journal of research in commerce and management (ISSN: 2277-1166)

Vol. 2 Issue 3. Jan 2013 pp 144-153.



Page 172

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Edition, Retail Management; Oxford

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