final report mkt 501

Consumers Attitude towards the Superstore Shop

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Analyzing consumer attitude towards different Super Stores


ANALYZING CONSUMER ATTITUDE TOWARDS DIFFERENT SUPER STORES

PREPARED FOR:

Dr. Md. Humayun Kabir Chowdhury

ProfessorDepartment of Business Adminstration

Course: Marketing Management

MKT- 501Sec- 02, Fall- 2010

PREPARED BY:

Parag DuttaID # 2009-2-95-111

Md. Moshiul AlamID # 2009-1-95-132

Sayed Enamul HasanID # 2009-2-95-034

Benzir Ahmmad ID # 2009-2-95-050

December 22, 2010

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December 22, 2010

Dr. Md. Humayun Kabir ChowdhuryCourse Instructor, Marketing ManagementDepartment of Business Administration East West University Dhaka-1212

Dear Sir

Here is the report on the study of Analyzing consumer attitude towards different Super Stores. This report is prepared to fulfill the partial requirement of the Marketing Management Course of MBA Program (MKT-501). From a questionnaire survey we have tried to determine the strengths and weaknesses of the Super Stores. We have done our best to give our maximum output according to our ability. We are calling sorry, for any mistake in this report.

Thank you for your valuable time and cordial considerations.

Sincerely,

________________ ________________Parag Dutta Md. Moshiul AlamID # 2009-2-95-111 ID # 2009-1-95-132

_______________Sayed Enamul Hasan Benzir AhmmadID # 2009-2-95-034 ID # 2009-2-95-050

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ACKNOWLEDGEMENT

For helping to make this project, first we would like to thanks the Almighty and our parents. We

would like to specially thank our Honorable teacher Dr. Md. Humayun Kabir Chowdhury, Course

Instructor, Marketing Management Professor, East West University for helping us to make this

report. We also thank to our friends, they gave us many idea and information. It is great

experience for us in light of the course “Marketing Management” which has a great significance

& a great importance as an emerging & flourishing sector in the global business arena. We

strongly believe works like this one will surely help us to develop & make us better adapted as

well as capable to coup with the issues & practical exposures in this field as well as to the whole

of different business forms that are getting pace.

We would like to thank those persons who help us to make this report.

Our special thanks to our lab stuffs of East West University. They helped us very much to collect

data and make the report. They gave us the chance for taking idea. Without their help we could

not able to prepare this project.

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TABLE OF CONTENTS

Page

Chapter 1: Introduction 8 to 10

1.1 Origin of the Report 9

1.2 Scope of the Report 9

1.3 Objectives of the study 9

1.4 Research methodology 9

1.5 Sampling Plan 10

1.6 Research Design 10

1.7 Methods of Analysis 10

1.8 Limitation of the study 10

Chapter 2: Super Stores: An Overview 11-18

2.1 An Overview of Super Store 12

2.2 An Overview of Agora 13

2.3 An Overview of Meena Bazar 15

2.4 An Overview of Nandan 16

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2.5 An Overview of PQS 17

Chapter 3: Expectancy Value Model and Its Complications

19-23

3.1 Expectancy Value Model 20

3.2 Calculation of Evaluation(ei) and Value 20

Chapter 4: Findings, Recommendations and Conclusion

24-30

4.1 Findings & Recommendation for Agora 25

4.2 Findings & Recommendation For Meena Bazar 26

4.3 Findings & Recommendation for Nandan 28

4.4 Findings & Recommendation for PQS 29

4.5 Conclusion 30

Reference 31

AppendixAppendix 32

Questionnaires 32-34

Executive Summary

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Super Store business is one of the popular businesses in the world. People are considering

frequent shopping through them. So in course of time and with the growth rate of population

and also appeal for high standard living, Super Store business is growing in a high pace.

The purpose of this report is to determine the consumer’s cognitive behavior and attitude

towards different Super Stores. These attributes used in t this report directly or indirectly

influence the consumers when they intend to purchase products as well as to get the service

provided by different super stores. The attributes considered here are: Quality, Price, Product

Variety, Product Availability, and Location. On the basis of the five attributes we have

developed our questionnaire and surveyed among the students. After getting the evaluation

from the students we follow the expectancy value model to measure the consumer perceived

value accordingly.

For data analysis we have followed one of the categories of Evaluation of alternatives named

Compensatory Heuristics (Expectancy Value Model) method, which is also known as FISHBEIN

Model. Primary data was collected through questionnaire survey designed according to the

Likert scale method for multiple-choice questions. We used the random sampling method to

choose the sample. We analyzed the data, presented the results and findings, and ranked the

companies based on the strengths and weaknesses respective to different attributes and overall

attitudes and finally recommended strategies for them to overcome the shortcomings they

have.

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Chapter 1

Introduction

1.1 Origin of the study

As a student of Marketing Management of the department of MBA, we have

done this project based on the Expectancy Value Model. By working on this

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project, we experienced a clear view about the attitudes that consumers

evaluate product and services by combining their brand beliefs.

1.2 Scope of the study

The scope of the study is to identify the evaluation of consumers towards the

various super stores. This project helps us to have a clear view about how a

consumer perceives a product. This will help us to evaluate the consumer’s

attitude and learn to design the Marketing Strategy.

1.3 Objectives of the study

The basic objective of study was to focus on the basic of expectancy value.

The objectives of the project are as follows:

To have an idea how a consumer evaluates the products or services by

combining their brand beliefs.

To have an idea about the consumer attitude towards a specific brand.

The methods to evaluate a consumers brand beliefs about super store.

1.4 Research methodology

Research methodology includes the source we have used to collect the data.

The data that we have used for research purposes mainly of two types-

primary or raw data and secondary data or published source.

Primary data sources

We have collected the data through a questionnaire from our class

mates. We have chosen them randomly

Secondary data sources We have collected the secondary data from the internet, articles and

related books of marketing.

1.5 Sampling plan

Population – East west University

Sample Unit – Students of MKT-501

Sampling type: Non Probabilistic Sampling

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Sample Size- 30 respondents

1.6 Research Design

The research design is descriptive in nature from the viewpoint of function

because it is based on describing various aspects of Superstores attributes

like Product Variety, Product Quality, Price, location and availability. From the

viewpoint of nature of data, it is both a qualitative and a quantitative

research. From the viewpoint of research place, it is both a desk research

and finally from the viewpoint of objective, it is an applied research.

1.7 Method for Analysis

In order to analyze and interpret data some tools of statistical analysis have

been used .The statistical tools to be followed are –

1. Likert Scale

2. Fishbein model

1.8 Limitation of the study

We have tried our level best to work on Expectancy Value model and tried to

find out vast outcomes on our concerned topic. To complete this work we

have tried to go through in details about the Expectancy Value Model. Our

honorable teacher has given us the guidelines for completing the project.

Though our teacher helped us to solve the project, but still we couldn’t

ignore some drawback and limitations. Those limitations are as follows:

The time for completing the project was not sufficient.

Not all the sampling unit had clear view about the superstore.

In spite of these, we tried our best to overcome other limitation and to give

the best of us. We are thankful to our faculty and fellow mates who also

helped us to finish this project.

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Chapter 2

SUPER STORES: AN OVERVIEW

2.1 An Overview of Super Store

The idea of all essential commodities under one roof is the driving force

behind the success of supermarket business in Bangladesh, which saw

around Tk.200 corer investments in the last five years. Superstores are set

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to boom in the country as the current market players are planning to open

several hundred more outlets in the next few years to cope with the rising

demand from the consumers.

The annual turnover of the superstores now stands at around Tk 15.0 billion

(1500 crore), according to Bangladesh Supermarket Owners Association

(BSOA).

Hassle-free shopping environment, hygienic commodities, fresh vegetables,

meat and fish at the supermarkets are wooing the customers besides, every

commodity is available in this supermarket, and the supermarkets offer good

services to working people, who really find little time for shopping in the

daytime.

The rise in supermarkets, according to analysts, will diversify consumer

choices and boost consumer spending needed for economic growth, while

the wet markets will also witness an improvement in quality and services on

increased penetration of supermarkets.

But a decade ago, the trade was in the hands of thousands of small retailers

in the wet markets and grocery shops in cities and remained out of the focus

of business conglomerates.

In the last eight years, many small and big supermarkets made debut in the

trade to attract middle and upper middle class consumers, a section of who

are shifting to the chain stores from the wet or kitchen markets.

A rise in the organized retailing would offer consumers hygienic foods at

competitive prices compared to those of unorganized retailers in the kitchen

markets where commodities are sold mostly in unhygienic manner.

We have chosen four main superstores from the whole supermarket industry.

We select those who offer all kind of necessary products including staple

products, food products. Our project will cover various aspects of Agora,

Meena Bazar, Nandan, and PQS.

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Dhaka-based Agora with its four outlets, Meena Bazar with eight branches,

PQS with five stores and Nandan with three outlets are the major players in

the market.

2.2 An Overview of Agora

Rahimafrooz Superstores Ltd. (RSL) made a breakthrough in the urban

lifestyles by launching the first retail chain in the country, ‘Agora’. Currently

there are four Agora outlets at Gulshan, Dhanmondi, Moghbazar and Mirpur

in Dhaka. With many more coming up at important locations in Dhaka and

other major cities, Agora is endeavoring to fulfill the everyday shopping

needs of the urbanites through fair price, right assortment, and best quality.

Agora mainly focuses on food items - ranging from a wide variety of fish,

meat, vegetables, fruits, bakery, dairy, and grocery - it also carries a vast

array of other household, grocery, personal care, and miscellaneous

products. At any point in time, there are nearly 20,000 different products

available at Agora.RSL is committed to sustaining and growing as the most

trusted, loved, and frequented retail chain.

Product Categories :

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Beverage

Fish

Fruit

Meat

Vegetable

Confectionary

Baby products

Basic Households

Paper accessories

Outlet:

Agora has four outlets all over Dhaka situated in Dhanmondi, Gulshan,

Mirpur, and Moghbazar. It has placed its outlets in the prime centers of city

which seems to be much convenient to customers. Agora has also started

their journey in Chittagong and Sylhet too.

Offering:

Agora has some Promotional activities which maintain its appeal to the

existing and potential consumers. It has regular promotion of services,

existing & new products in daily newspaper to keep consumers aware of the

available products. Also Agora has some exclusive seasonal offer, price

reduction, sales promotion to attract the consumers as well. Many exclusive

products like perfume, households and fresh basic foods are available in

Agora which is priced higher than traditional market. Mainly Agora supplies

many unusual unseasonable items which they priced higher because of the

product unavailability in outside.

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2.3 An Overview of Meena Bazar

Meena Bazar, which started its journey in 2002, has already extended its

business to Khulna. The company has taken up a three-year plan to open

outlets in Chittagong and Sylhet and at eight points in Dhaka.

"Positive customer response is inspiring more investments in the thriving

sector," said Kazi Jamil Islam, executive director of Meena Bazar


Beverage

Fish

Fruit

Meat

Vegetable

Basic household

Exclusive shirt, tie, shoes

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Accessories

In house product like sweet, yogurt, herbal product.

Outlet:

At this moment, Meena bazaar is operating eight branches in Dhaka. In Khulna, they have opened another branch.

Offering:

Meena Bazar is sometimes offering for their customer on various occasions.

2.4 An Overview of Nandan

One of them is Nandan Mega Shop. Nandan Group, with their first retail

outlet, Nandan Mega Shop, brought the like of Sainsbury’s in Bangladesh in

the Year 2002. From 2002 they continue running their business successfully.

They have a wide product verity and also give their customer quality product

and service.


Meat

Fish

Fruit

Beverage

Vegetable

Basic household

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Shoe

Musical CD, DVD

Medicine

Price:

The price of the product is including VAT. But sometimes they give various

types of discount on the products. They follow company retail price for

other’s goods. Sometimes sale goods below market price

Outlet:

They have 3 outlets in the Dhaka city. Those are Dhanmodi, Gulshan, Kakrail and Uttara. They are going to launch their own website very soon.

Offering:

To hold the present customer and catch the potential buyer, they offer various types of promotional activities. Like in Eid, 1st boishak festival, Puja etc. Arrange various types of festivals, weekends, 5 day long discount etc on their product.

2.5 An Overview of PQS

The first chain supermarket in Bangladesh is PQS, which was established in

September 2005 at Uttara in Dhaka. On the growth of the relatively new

business, PQS tries to ensure customers' satisfaction from the beginning and

their quality products also attract customers.

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Meat

Fish

Fruit

Beverage

Vegetable

Shoe

Dress

Hand bag

Showpieces

Toys for kids

Outlet:

They have now five outlets at Uttara, Shanti Nagar , Dhanmondi,Gulshan and the other one is in Elephant Road

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Offering:

They make offer by colorful festoons and promotional poster hung in and

outside the shop, along with gimmicks like raffle draw in various occasion.

Like Eid, puja etc.

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Chapter 3

Expectancy Value Model and Its Implications

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3.1 Expectancy-Value Model

The consumer arrives at attitude (Judgment; Preference) toward various brands through an attribute evaluation procedure. The consumer develops a set of beliefs about where each brand stands on the attribute.

The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brands belief –the positive and negative-according to importance. By the expectancy model, we calculate the perceive value of each brand of a customer. The consumer will favor the brand which has the highest perceived value.

Here,

bi= beliefs ei= evaluation

As we have decided to go for Super Store industry for our research purpose. So finally we have selected four leading Super Store, which are as follows.

Agora Meena Bazar Nandan PQS

3.2 Calculation of evaluation (ei) and value

Evaluation of the Super Shop:

Sample Size – 30 Persons

Evaluation Process:

Firstly, we have collected the information from 30 personnel for evaluating the super

shops. Secondly, data were inputted on the Fishbein Model and then calculate the value.

According to the model,

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A= ∑ b e

Where, A= Attitude b = Believe e = Evaluation

Major attributes:

1. Quality

2. Price

3. Variety

4. Availability

5. Location

We have allocated value of each response as below according to 5 points Likert scale –

1. very Good = 52. Good = 43. Neutral = 34. Bad = 25. Very Bad = 1

Findings

Below are the findings of the analysis using survey data:

The respondent of the survey provided the following responses, which represent

ei and the weight given based on the 5 point scale measurement.

Super Shop

Names

Attributes (ei)

Quality Price Variety Availability Location

Agora 4.07 4.17 3.93 4.27 4.07Meena Bazar 4.17 3.8 4.27 4.07 3.97Nandan 3.8 4.2 4 4 3.97PQS 3.8 3.97 4.13 4.23 3.8

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Here the value of Quality for Agora = 4.07 means this is the average value of the 30

respondents given response. It means people selected different level of Likert scale and

those value i.e. 1, 2, 3, 4, 5 whatever represents their response is recorded for each

attribute and then divided by 30 to get the average value of that attribute.

Based upon market analysis and personal experience; we have set the following weight (bi) of

different attributes which is done dividing 100 scale into several parts.

Weight (bi)

Quality Price Variety Availability Location Total

30 25 20 15 10 100

We used the 5 points Likert scale to measure the consumer feedback against different Super

Shop products:

very Good Good Neutral Bad Very Bad5 4 3 2 1

**The questionnaire of the survey is attached at end of the report.

Then we used the Fishbein Attitude Model to calculate the consumer’s attitude about each

Super Shop, multiply the attribute evaluations with weight of each attributes and then

calculate total for each Super Shop:

n

Ao =∑bi.ei

i=1

Calculation:

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Super Shop Names

Attributes Result

Quality Price Variety Availability Location Total Points

Positions

Agora 122.1104.2

5 78.6 64.05 40.7 409.71st

Meena Bazar 125.1 95 85.4 61.05 39.7406.2

52nd

Nandan 114 105 80 60 39.7 398.7 3rd

PQS 114 99.25 82.6 63.45 38 397.3 4th

Here suppose for Agora; previously we got the attributes value (e i) 4.07 for Quality; and we

set weight (bi) = 30 for Quality; so we multiplied attribute value ei and weight value (bi)

and got 122.1. In similar ways, we calculated the value for each Super Shop’s different

attribute. After that, based upon the total point we have got the positions of each Super

Shop among them.

From the above analysis we found that Agora posses the top position in consumers mind

while they consider different Super Shop to purchase while as Meena Bazar, Nandan and

PQS posses 2nd, 3rd and 4th position respectively.

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Chapter 4

Findings, Recommendations and Conclusion

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4.1 Findings & Recommendation For Agora:

Strength:

When it comes about the price factor, Agora is very competitive among

the super shops.

Product availability feature is another key attribute for attracting

consumer specially the loyal users. Here agora is ahead than other

super shops which means when a user go to their shop, they find their

desired product available in desired size and models.

Weakness: According to the analysis, Agora obtained second highest point about

maintaining their quality. This means they need to work out more in

this sector.

In product variety, Agora’s situation is really bad. According to the

analysis, agora’s product variety is lowest. So they need to concentrate

in this factor more.

Recommendations:

According to the analysis, we can take Agora as the Market leader of

the total super shop industry. As it is ahead than other super shops, to

retain the market share, Agora must work out in some attributes which

are Quality, price factor, product variety.

Expanding total market: Agora generally targeted Upper middle

class and Rich class people. But there is a huge potential market which

is not focus properly. Thus the concept of superstore is not always

convenient to other income people. So if agora can reduce their

costing, keeping the price and the quality same a huge potential

untouched customer may start to visit them rather than local market.

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Defending market share: To retain their existing market, they can

use some in store activities, so that customers feel more convenient,

more ease at their shops. Giving the valued customers, a little more

extra service may retain their existing customer loyal to them. Bonus

point is already installed in the stores of Agora for buying products.

Along with that, informing consumers over phone or email about their

new offers and new arrivals of products may attract consumers to feel

close to them.

Flanking Defense can be a strategy for Agora to hold the

market share. By enriching the product variety in

reasonable pricing, keeping the product available and

maintaining the quality of the products may help Agora

satisfy existing consumers and attracting new consumer

towards them. Protecting the weak point is the major

target in this defense system. So strengthening their weak

points, they may make their defense system stronger.

4.2 Findings & Recommendation For Meena Bazar

Strength:

According to the analysis, Meena Bazar holds the highest position in maintaining the quality of the commodity they sell.

It’s been observed that Meena Bazar offers wide variety of products. Some products are available only in Meena Bazar which is not available elsewhere.

The availability of products in Meena Bazar is also good.

Only Meena bazaar has in-house products like cosmetics, skin care products.

Customer find it Meena bazaar at convenient place which resulted in large number of customer visit per day in Meena bazaar. Their branches are situated in the prime location of the city.

Weakness:

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Price of Meena bazaar is comparatively higher than other leading superstores resulted from the survey

Recomendation:

Meena Bazar should define strategic objectives and opponents and

should take actions accordingly.

They may choose some attacking strategy like Flank attack, for that

they need to find out the weakness of their competitor and thus they

can concentrate on the weak points of their opponents and develop

their strategy accordingly.

They even may choose Encirclement Attack so that they can offer

everything their opponent offers and in some cases if they can offer

more than their opponents, their strategy may face of success.

If they choose bypass attack, they may change the range of their

product category and product brands with exclusive price offers. For

this they may open their branch in different location where consumers

are still untouched but potential in terms of business.

Some other strategies may be chosen like :

o Price discounts: By promoting special price offer, Meena bazaar may attract and attain their existing consumers.

o Prestige goods strategy: As Meena bazar has set up their branch in the posh locality of the city, they can take prestige goods strategy very easily. By providing prestige goods, they may set up a new consumer segment that is exclusively loyal to them.

o Product proliferation: products in various size, colors and from different brands may help them to grow their business. They may enrich the range of their products by all available brands and products.

o Improved services strategy: They can offer special service to their customers such as home delivery unit or even in store testing service may attract their consumers.

o Intensive advertising strategy: they may take intensive advertising strategy to grow new consumers. Both ATL & BTL promotion may help them to grow their business.

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4.3 Findings & Recommendation for Nandan

Strength:

From the survey we find that Nandan offers a competitive price. For

which a number of customers go to Nandan, rather than other super

shops.

Weakness: Nandan is lack behind offering quality products in wide range of

variety.

Even the availability of products is Nandan is not competitive than

other leading supershop.

Nandan only have two branches in Gulshan and Dhanmondi. That is

another problem for them to catch up potential & new consumers.

Recomendations:

Nandan should strongly concentrate to overcome their weak points so

that they can start compete equally with their opponents first. By

overcoming those drawbacks, they will be able to set a strong image in

their consumer’s mind.

For setting their strategy they can choose any of the following

strategy:

o Counterfeiter: As being a market follower, Nandan can easily take the strategy of counterfeiter. They can follow the product line of the market leaders like Agora or challenger like Meena Bazar.

o Intensive advertising strategy: they may take intensive advertising strategy to grow new consumers. Both ATL & BTL promotion may help them to grow their business.

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4.4 Findings & Recommendation for PQS

Findings:

As our analysis depends on our findings from the conducted survey, we

discover that though in some attributes PQS is lacking behind compare to

other superstores, they also offer some competence in some attributes

too comparing with other superstore.

Strength:

In price, product variety and product availability attributes, they

really shows a competent attitude towards their competitors.

Being the first super shop of Bangladesh, PQS try to satisfy their

limited consumers by serving them with the products within the

reach of the consumers.

Weakness:

Though PQS is competeting in the market for a long time, they

could not create strong situation against their competitors.

They could not even be able to make a strong position in their

consumer’s mind.

Recommendations:

As their consumer line is small in comparison to other super shops,

PQS can try to retain this consumer loyal to them first. For that they

can improve their customer service in their store. They can take the

strategy to make their customer believe that in their small activities,

they are serving the best.

They can offer customized products to their consumers.

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Price range is suitable for middle income customers. But they can

concentrate to target the low income people group so that they may

attract an untouched community.

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4.5 Conclusion:

Though supermarket culture is an emerging phenomenon in Bangladesh

perspective, but it has gained substantial profit in few years. The people of

Bangladesh also welcome the superstore concept because of the

conveniently aspects of shopping. The industry is getting bigger and

competition is being tougher. Now a days Superstores are trying to be

accessible for all kind of people which would be amazing for us.

Superstore is a business as well as a unique service to connect consumers

with better products and prices, and create a market for local manufacturers.

A rise in supermarkets would give consumers more choices and allow them

to choose independently.

Organized retail shops might lead to an improvement in quality and services

in the wet markets. It will increase consumption and help boost economy.

Supermarket also works as an aggregator of local and imported products

which seems to have significant impact on buyers. People can experience

many products, compare the qualities of products and also can gain

knowledge on global products.

It can be undoubtedly concluded that supermarket concept is proven very

useful and effective for us. In this whole assignment we try our best to unveil

the insights of different superstores. We try to enlighten a comparison

among them within our limited scope. We are grateful to our respected

instructor to give us the opportunity to explore the ideas and dimensions of

Superstores.

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Reference:

1. Marketing Management 11th Edition- Philip Kottler & Kavin Lane Keller

www.agorabd.com Newspaper Articles Internet

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http://www.agorabd.com/


Appendix

Questionnaire:

We are the students of MBA department in East West University develop a questionnaire

on consumer behavior towards different Super Shop for the purpose of Marketing

Management (MKT-501) course. For this reason, we need your evaluation. We are

requesting to fill this questionnaire. We are ensuring you that it will be remain confidential

and it will not be disclosed to anyone.

Assessment Scale:

5 4 3 2 1

Very Good Good Neutral Bad Very Bad

Please (×) your valued option under the following statements:

1) Does Agora maintain the standard procedure to control the quality of the product?

A) Very Good B) Good C) Neutral D) Bad E) Very Bad

2) Do you think the price of the products in Agora is reasonable and competitive?


3) What’s your opinion about the product variety in Agora?


4) How would you evaluate the availability of products in Agora?


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5) How convenient is Agora’s location to you?


6) Does Meena Bazar maintain the standard procedure to control the quality of the product?


7) Do you think the price of the products in Meena Bazar is reasonable and competitive?


8) What’s your opinion about the product variety in Meena Bazar?


9) How would you evaluate the availability of products in Meena Bazar?


10) How convenient is Meena Bazar’s location to you?


11) Does Nandan maintain the standard procedure to control the quality of the product?


12) Do you think the price of the products in Nandan is reasonable and competitive?


13) What’s your opinion about the product variety in Nandan?


14) How would you evaluate the availability of products in Nandan?


15) How convenient is Nandan’s location to you?


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16) Does PQS maintain the standard procedure to control the quality of the product?


17) Do you think the price of the products in PQS is reasonable and competitive?


18) What’s your opinion about the product variety in PQS?


19) How would you evaluate the availability of products in PQS?


20) How convenient is PQS’s location to you?


Thank you for your kind cooperation.

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final report mkt 501

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