Post on 08-Nov-2014
transcript
A Project Report on
SERVIQUAL- Service quality Gap analysis at
Big bazaar, Hyderabad
Hyderabad
By
Palak Marodia
PGDM-IB (1104029)
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Abstract
Competitiveness and search for profits have called more attention towards customers satisfaction and
increased researcher’s interest on the topic of service quality .In this context, the present studies
applies SERVQUAL for accessing service quality in Retail industry. The main objective of this study
is to assess quality service dimensions that are delivered through perspectives of the customers.This
work was performed in a shopping mall with more than 200 shops located nearby.A questionnaire
was developed on the basis of Service quality dimensions and asked to the customers for gathering
data from which results was analyzed. The results of this study shows the 5 different quality
dimensions and characteristics that call customer attention.
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Declaration
I, Palak Marodia, hereby declare that the project entitled “SERVQUAL –Service Quality gap analysis
at Big Bazaar , Hyderabad.” Has been personally done by me under the guidance of Mr. M Karthik ,
Assistant Professor, PGDM-IB in partial fulfillment during academic year 2 .All the data represented
in the project is true and correct to the best of my knowledge and belief .This work has not been
submitted for any other degree /diploma course elsewhere.
Place: Hyderabad
Palak Marodia
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Acknowledgement
A Project usually falls short of its expectation unless guided by the right person at the right time. Success of a project
is an outcome of sincere efforts, channeled in the right direction, efficient supervision and the most
valuable professional guidance.
This project would not have been completed without the direct and indirect help and guidance of such luminaries. They provide me with the necessary recourses and atmosphere conductive for healthy learning and training.
At the outset I would like to take this opportunity to gratefully acknowledge the very kind and patient guidance I have received from my internal project guide Mr. M Karthik, Without her critical evaluation and suggestion at every stage of the project, this report could not have reached its present form. In addition I would like to extent my sincere gratitude towards my external guide Mr. Rahul B , Manager HR ,Bigbazaar ,Hyderabad for their kind cooperation throughout my Internship .
I am also thankful to Mr. Berny S , Store Manager and Mr.Murali Assistant Store Manager ,Big bazaar Hyderabad
I would like to give special thanks to all employees in the big bazaar for all help and supports.
Last but not least I extend my heartfelt thanks to all my family members and friends for their support and encouragement, without which the internship would not have taken the present shape.
Thank You
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Contents
Chapter I
o Introduction
o Industry Overview
o Need for Study
o Objective of the study
o Review of literature
o Methodology
o Limitations of the study
Chapter II
o Profile of the Industry
Chapter III
o Profile of the Company
Chapter IV
o Theoretical Framework of Study
Chapter V
o Analysis of the Study
Chapter VI
o Summary
o Analysis & Conclusion
Annexure
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Bibliography
Chapter I
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Introduction
Managers in the Retail sector are under increasing pressure to demonstrate that their services are
customer-focused and that continuous performance improvement is being delivered. Given the
financial and resource constraints under which service organisations must manage it is essential that
customer expectations are properly understood and measured and that, from the customers ’
perspective, any gaps in service quality are identified. This information then assists a manager in
identifying cost-effective ways of closing service quality gaps and of prioritizing which gaps to focus
on – a critical decision given scarce resources
While there have been efforts to study service quality, there has been no general agreement on the
measurement of the concept. The majority of the work to date has attempted to use the SERVQUAL
(Parasuraman et al. , 1985; 1988) methodology in an effort to measure service quality
One of the aims of this study involves the use of SERVQUAL instrument in order to ascertain any
actual or perceived gaps between customer expectations and perceptions of the service offered.
Another aim of this paper is to point out how management of service improvement can become more
logical and integrated with respect to the prioritized service quality dimensions and their affections on
increasing/decreasing service quality gaps. In the following a brief review about service quality
concept is given .
Service Quality
Service quality is a concept that has aroused considerable interest and debate in the research literature
because of the difficulties in both defining it and measuring it. There are a number of different
"definitions" as to what is meant by service quality. One that is commonly used defines service
quality as the extent to which a service meets customers’ needs or expectations (Lewis and Mitchell,
1990; Dotchin and Oakland, 1994a; Asubonteng et al ., 1996; Wisniewski and Donnelly, 1996).
Service quality can thus be defined as the difference between customer expectations of service and
perceived service. If expectations are greater than performance, then perceived quality is less than
satisfactory and hence customer dissatisfaction occurs (Parasuraman et al ., 1985; Lewis and
Mitchell, 1990). This aim may be achieved by understanding and improving operational processes;
identifying problems quickly and systematically; establishing valid and reliable service performance
measures and measuring customer satisfaction and other performance outcomes. The SERVQUAL
approach, which isthe most common method for measuring service quality.
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Customer Gap : the difference between customer expectation and perceptions
Gap 1 : The listening Gap – Not Knowing what customers expect
Gap 2 : The Design and Standard Gap- Not having the right service design and standards
Gap 3 : The Service Performance Gap- Not delivering to Service Standards
Gap 4 : The Communication Gap – Not matching performance to promises
The central focus of gaps model is the customer gap, the difference between customer expectations
and perceptions. Expectations are the reference points customers have coming into a service
experience; perceptions reflect the service as actually received. The idea is that the firms will have to
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close this gap- between what is expected and what is received-to satisfy their customers and build
long term relationships with them.
A primary cause in many firms for not meeting customers’ expectations is that the firm lacks accurate
understanding of exactly what those expectations are. A gap exists (gap 1) between company
perceptions of customers expectations and what customer actually expects. Even the firm does clearly
understand its customers’ expectations , there still may be problem if the understanding is not
translated into customer driven service esign and standards (gap 2 )
Once service design and standards are in place . it would seem the firm is well on its way to
delivering high quality services. This is true but still not enough.there must be systems , processes,
and people in place to ensure that service delivery actually matches the design and standards in place
(gap 3 )
Finally with everything in place to effectively meet or exceed customer expectations, the firm must
ensure that what is promised to customers matches with what is delivered(gap 4)
According to Brown and Bond (1995), "the gap model is one of the best received and most
heuristically valuable contributions to the services literature". The model identifies main key
discrepancies or gaps relating to managerial perceptions of service quality, and tasks associated with
service delivery to customers.
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OVERVIEW OF INDIAN RETAIL INDUSTRY
The retail industry is becoming one of the most competitive in India, with supermarket chains
and malls mushrooming all over. People are making a beeline for shopping experience at Food
World, Fabmall, Family mart, Big Bazaar, Forum, Shoppers’ stop and the like, who are
competing to woo them. Retailing includes all the activities involved in selling goods or services
directly to the final consumer for personal or non business use. Retailing is the final stage in the
distribution process. With the popularity of the internet, retailing is becoming popular using the
website adn a new form of e-tailing is also developing. Retailing is not restricted to tangible
products. It covers services also. Airline travel, dry-cleaning, training programmes etc. In other
words, retailing is the sale of goods and services to the ultimate consumer, personal ,family or
Household use. Thus retailing involves more than selling tangible products. It includes every sale
of goods and services to the final consumer. Thus purchase of a service such as reservation of
railway ticket, consultancy of a physician, maintenance services of a plumber,carpenter,hair cut
etc..
India is a land where we love to shop. No, we aren’t the branded shoppers, who stock up on
groceries for the rest of week. Instead, we choose to buy on an everyday fresh and buy on an
everyday basis. Yet, with travel expanding horizons, customers have escalating expectations.
Leading retailers are trying to adapt to new retail concepts and new business ideas. Research by
the Aditya Birla Group claims “India is a trillion-dollar economy. Of this, retail accounts for
about 40%. Of that, 60% is spending on food and groceries. Of that, about 60% is rural and 40%
is urban.
Organized Vs. Unorganized Sectors
The Indian retail industry is divided into organized and unorganized sectors. The Indian retail sector is
highly fragmented, with a major share of its business is being run by unorganized retailers like the
traditional family run stores and corner stores. The organized retail however is at a very nascent stage,
though attempts are being made to increase its proportion bringing in a huge opportunity for
prospective new players.
Unorganized Retail Sector
Indian retail is dominated by a large number of small retailers consisting of the local kirana shops,
owner-manned general stores, chemists, footwear shops, apparel shops, paan and beedi (local betel
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leaf and tobacco) shops, hand-cart hawkers, pavement vendors, etc. which together make up the so-
called "unorganized retail" or traditional retail. The last few years have witnessed the entry of a
number of organized retailers opening stores in various modern formats in metros and other important
cities.
Unorganized retailers normally do not pay taxes and most of them are not even registered for sales
tax, VAT, or income tax.
Organized Retail Sector
Organized retailing refers to trading activities undertaken by licensed retailers, that is, those who are
registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail
chains, and also the privately owned large retail businesses.
According to AT Kearney report for the year 2011,Organised retail accounts for 6 to 7 per cent of
India's roughly US$ 435 billion retail market and is expected to reach 20 per cent by 2020.Food
accounts for 70 per cent of Indian retail, but it remains under-penetrated by organized retail.Organised
retail has a 31 per cent share in clothing and apparel and continues to see growth in this sector.The
home segment shows promise ,growing 20 to 30 per cent per year. India’s more urban consumer
mindset means this sector is poised for growth
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Need For the Study
Today globalization and liberalization are affecting economies of not only developing but also
developed countries. The focus areas for organizations are also changing from profit maximization to
maximizing profits through increased customer satisfaction. The pressures of competition are forcing
the organizations to not only look on the processes but also on the way they are delivered. During past
two decades business scenario has changed drastically. In a retail Industry customers’ perception and
expectation is essential to provide service quality. So finding out the gap and fixing the gap in the
service quality will result in customer satisfaction which is the basis of the successful running of a
store
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Objectives of the Study
To discover Customer requirements or expectations for service To monitor and track service performance To assess the gap between customer expectation and perceptions To forecast future expectations of the customers To assess a company’s Service quality along each of the five SERVQUAL dimensions.
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REVIEW OF LITERATURE
Review of literature is the most useful and simple method of formulating the research problem.The
researches done by previous researchers is reviewed and their usefulness is evaluated to
serve as basis for further research. Thus researcher reviews and builds upon the work of others.The
reviews that are collected by the researcher should give an insight into the field under study.The
reviews must explain the need and scope of the study under consideration
Parasuraman Zeithamal and Berry (1985) emphatically pointed out that the concept of quality
prevalent in the goods sector is not extendable to the service sector. Being inherently and essentially
intangible, heterogeneous, perishable, and entailing simultaneity and inseparability of production and
consumption, services require a distinct framework for quality explication and measurement.
One major contribution of Parasuraman Zeithamal and Berry (1988)was to provide a terse definition
of service quality. They defined service quality as ‘a global judgment, or attitude, relating to the
superiority of the service, and explicated it as involving evaluations of the outcome (i.e. what the
consumer actually receives from the service) and process of service act (i.e. the manner in which
services is delivered) In line with the propositions put forward by Gronroos(1982) and Smith and
Houston (1982), Parasuraman Zeithamal and Berry (1985,1988) posited and operationalized service
quality as a difference between consumer expectations of ‘what they wand ‘ and consumer perception
of ‘what they get’. Based on this conceptualization and operationalization, they proposed service
quality measurement called ‘SERVQUAL’ . The SERVQUAL scale constitutes an important
landmark in the service quality literature and has been extensively applied in different service
settings.
Zeithaml et al. (1993) explored the gap between expectations and perceptions to better understand
expectations as they pertain to customer assessment of service quality and to extend the theoretical
work that exists in the customer satisfaction literature. Based on their study, the gap between customer
expectations and perceptions as proposed by Parasuraman et al. (1985)can be conceptualized to reflect
two comparison standards: desired service which reflects what customers want, and adequate service
which indicates the standard that customers are willing to accept. The comparison between desired
service and perceived service or the level of service customers believe is likely to occur, called
perceived service quality (PSQ) is the perceived service superiority gap. The comparison between
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adequate service and perceived service, called PSQ Gap 5 is the perceived service quality adequacy
gap.The smaller the gap between desired service and perceived service, the higher the perceived
superiority of the firm. The smaller the gap between adequate service and perceived service, the
higher the perceived adequacy of the service
Jain and Gupta (2004) have done a comparative analysis of two major service quality measurement
scales: SERVQUAL and SERVPERF. An ideal service quality scale is one that is not only
psychometrically sound but is also diagnostically robust enough to provide insights to the managers
for corrective actions in the event of quality shortfalls. This study assesses the diagnostic power of the
two service quality scales. Using data collected through a survey of consumers of fast food restaurants
in Delhi, the study finds the SERVPERF scale to be providing a more convergent and discriminated
valid explanation of service quality construct. However, the scale is found deficient in its diagnostic
power. It is the SERVQUAL scale which outperforms the SERVPERF scale by virtue of possessing
higher diagnostic power to pinpoint areas for managerial interventions in the event of service quality
shortfalls. SERVPERF scale should be used for assessing overall service quality of a firm because of
its psychometric soundness and greater instrument parsimoniousness. One should employ the
SERVPERF scale should also be the preferred research instrument when one is interested in
undertaking service quality comparisons across service industries.
Saravan and Rao (2007) have highlighted that in service firms the practitioners are interested to
know the customer perceptions of service quality for identifying shortfalls and improving serviced
livery. This study has analyzed the discrimination among the three groups (customer oriented,
employee oriented and technology oriented) of overall service quality from the customers’
perspective. The results indicate that both the technological factors and the people-oriented factors
appear to contribute more in discriminating the three groups of overall service quality. Further, the
service quality indices in the Indian automobile service sector as a whole indicate a satisfactory
performance.
Swaid and Wigand (2007) in their study have found that to satisfy and retain customers the
organization has to offer a superior service quality. The study indicates that the key dimensions of
ecommerce service quality are website usability, information quality, reliability, responsiveness,
assurance and personalization. Secondly customer satisfaction is influenced mostly with the
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perception of reliability, while customer loyalty is affected by the perception of assurance and
customer retention is predicted by the customer satisfaction index.
Rajagopal (2008) has analyzed the impact of market orientation strategies and performance of
customer services on customer acquisition, retention and sales of automobiles which reveals overall
performance of automobile dealers in Mexico. The study comprehends understanding on customer-
dealer relationship in the automobile market segment referring to key factors which establishes
service quality encompassing tangibility, responsiveness, trust, accuracy and empathy. It was found
that the customers perceive better quality of relationship in a given frame of functions that are
performed effectively by the dealer lowering the extent of conflicts thereof. High conformance quality
services of dealers and value added customer relationship to offer high customer satisfaction develop
life time customer value and strengthen the customer-dealer relationship
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Methodology
Clearly, from a Best Value perspective the measurement of service quality in the service sector should
take into account customer expectations of service as well as perceptions of service. However, as
Robinson (1999) concludes: "It is apparent that there is little consensus of opinion and much
disagreement about how to measure service quality". One service quality measurement model that has
been extensively applied is the SERVQUAL model developed by Parasuraman et al . (1985, 1986,
1988, 1991, 1993, 1994; Zeithaml et al. , 1990).
SERVQUAL as the most often used approach for
measuring service quality has been to compare customers' expectations before a service encounter and
their perceptions of the actual service delivered. The SERVQUAL instrument has been the
predominant method used to measure consumers’ perceptions of service quality. It has five generic
dimensions or factors and are stated as follows
(1) Tangibles . Physical facilities, equipment and appearance of personnel.
(2) Reliability. Ability to perform the promised service dependably and accurately.
(3) Responsiveness . Willingness to help customers and provide prompt service.
(4) Assurance (including competence, courtesy, credibility and security). Knowledge and courtesy of
employees and their ability to inspire trust and confidence.
(5) Empathy (including access, communication, understanding the customer). Caring and
individualized attention that the firm provides to its customers.
In the SERVQUAL instrument, 19 statements (Appendix I) measure the performance across these
five dimensions, using a seven point likert scale measuring both customer expectations and
Perceptions. A set of questionnaire were prepared on that basis and collected information from very
regular customers , who visits the store , purchased items even from electronic or furniture bazaar .
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Limitations of the Study
Customer expectations and Customer Perceptions are subjective and are in a state of constant
flux and change. The findings therefore can be generalized to a given period, a pre-defined
market, and economic scenarios. The study also is confined to the Indian scenario and with
Hyderabad as the focal point. Geo-demographic could have a great deal of influence on the
customer expectations and perceptions. It is also not amiss to mention here that the zone of
tolerance could vary from one customer to another. This variation has not been assessed in
the current study. The expectation of the customers is taken as 6 because it’s a value product
based retail format and done a trend analysis on the expectation score, providing the average
result as six.
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Chapter II
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Profile of the IndustryGROWTH OF RETAILING IN INDIA:
Retailing has been growing at a fast pace in India. Of late, indian retailing is also gaining
sophistication, almost at par with international standards. The Government of India’s Pubilc
Distribution System was the starting point of organised retailing in the country, which continues as
‘fair price shops’ or ‘ration shops’, especially for essential goods like sugar, rice, wheat. The
domestic retailers have placed two demands to be met by the Government of India before throwing
hte sector open to global players fully. The first is their demand for according the ‘industry status’ to
the retail sector and the second is a five-year time span to be able to build economies of scale so as to
withstand the foreign competition. Indian retailers also fear that the entry of foreign retail firms like
Wal-Mart will destroy the small domestic retail/wholesale networks and render millions they employ.
In February 2006, the government of India announced its policy for FDI in retail sector.
According to the announcement, FDI up to 51 per cent in retail trade would be subject to the
following conditions.
1. Products to be sold should be of a single brand only
2. Products should be sold under the same brand internationally
3. Single brand product retailing would cover only products which are branded during
manufacturing.
4. FDI would be allowed only with prior approval of the Government , conforming to
prescribed norms and conditions
5. Processing will be done by the dept. Of industrial policy and promotion for government
Approval.
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Retailing formats in India
1. Malls
2. Specialty Stores
3. Discount Stores
4. Department Stores
5. Hyper marts / Supermarkets
6. Convenience Store
7. MBO’s
8. E-trailer
Malls:
Mall is largest form of organized retailing today. Located mainly in metro cities, in proximity to
urban outskirts they range from 60,000 sq ft to 7, 00,000 sq ft and above. They lend an ideal
shopping experience with an amalgamation of product, service and entertainment, all under a
common roof. Examples include Shoppers Stop, Pyramid, and Pantaloon.
Specialty Stores:
Focusing on specific market segments and have established themselves strongly in their sectors.
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's
Music World and the Times Group's music chain Planet M are a couple of examples.
Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the MRP through
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selling in bulk reaching economies of scale or excess stock left over at the season. The product
category can range from a variety of perishable/ non perishable goods. Discount Circuit is one
such example.
Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further
they are classified into localized departments such as clothing, toys, home, groceries, etc.
Hyper marts/Supermarkets:
Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These
are located in or near residential high streets. These stores today contribute to 30% of all food &
grocery organized retail sales. Super Markets can further be classified into mini supermarkets
typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq
ft. having a strong focus on food & grocery and personal sales.
Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a
limited range of high-turnover convenience products and are usually open for extended periods
during the day, seven days a week. Prices are slightly higher due to the convenience premium.
MBO’s:
Multi Brand outlets, also known as Category Killers, offer several brands across a single product
category. These usually do well in busy market places and Metros.
E-trailers:
Retailers providing online buying and selling of products and services
Major Players In
Retail Industry
Ownership
Brand Name Outlet type Location
RPG Spencers Supermarkets ,
Hypermarkets
Across all major cities
DFL Food World Supermarkets Chennai, Bangalore and
Hyderabad
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Pantaloon Big Bazaar Hypermarket Across all major cities
Nilgiri’s Franchisee Pvt.
Ltd
Nilgiri’s Supermarkets Chennai, Bangalore,
Pondicherry and tier two
towns in Tamil Nadu
Fabmall India Pvt Ltd Fabmall Supermarkets Bangalore and Chennai
Food Express India Ltd Monday to
Sunday, Jumbo
Supermarkets
Hypermarkets
Bangalore
Home Stores Pvt. Ltd. Sabka Bazaar Discount stores Delhi and adjoining areas
Pyramid Retail Ltd. Trumart Supermarkets Maharashtra- Mumbai
Trent (Tata Group) Star India
Bazaar
Hypermarkets Ahmedabad, Mumbai
Spar- India Ltd. Spar Supermarkets Mumbai,Hyderabad
INDUSTRY ANALYSIS OF THE INDIAN RETAIL SECTOR
Modern retailing has entered India in form of malls and huge complexes offering shopping,
entertainment, leisure to the consumer as the retailers experiment with a variety of formats, from
discount stores to supermarkets to hypermarkets to specialty chains. However, kiranas still
continue to score over modern formats mostly due to the convenience factor i.e. near to their
house.This organized segment typically comprises of a large number of retailers, greater
enforcement of taxation mechanisms and better labour law monitoring system. It's no longer
about just stocking and selling but about efficient supply chain management, developing vendor
relationship quality customer service, efficient merchandising and even the labour class is also in
the working process timely promotional campaigns.
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The modern retail formats are encouraging development of well-established and efficient supply
chains in each segment ensuring efficient movement of goods from farms to kitchens, which will
result in huge savings for the farmers as well as for the nation. The government also stands to gain
through more efficient collection of tax revenues. Network marketing has been growing quite fast
and has a few large players today. Gas stations are seeing action in the form of convenience stores,
ATMs, food courts and
pharmacies appearing in many outlets. In the coming years it can be said that the hypermarket
route will emerge as the most preferred format for international retailers stepping into the country.
Estimates indicate that this sector will have the potential to absorb many more hypermarkets in the
next four to five years.
Traditionally, the kirana retailing has been one of the easiest ways to generate self-employment,
as it required minimum investment in terms of land, labour and capital. These store are not
affected by the modern format of retailing. In order to keep pace with the modern formats,
kiranas have now started providing more value-added services like stocking ready to cook
vegetables and other fresh produce. They also provide services like credit, phone service, home
delivery etc.The organized retailing has helped in promoting several niche categories such as
packaged fruit juices, hair creams, fabric bleaches, shower gels, depilatory products and
convenience and health foods, which are generally not found in the local kirana stores.
Looking at the vast opportunity in this sector, big players like Reliance has announced its plans to
become the country's largest modern retainers by establishing a chain of stores across all major
cities. Apart from metro cities, several small towns like Nagpur, Nasik, Ahmedabad, Aurangabad,
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Sholapur, Kolhapur and Amravati has seen the expansion of modern retails. Small towns in
Maharashtra are emerging as retail hubs for large chain stores like Pantaloon Retail because
many small cities like Nagpur have a student population, lower real estate costs, fewer power
cuts and lower levels of attrition. However, retailers need to adjust their product mix for smaller
cities, as they tend to be more conservative than the metros. In order for the market to grow in
modern retail, it is necessary that steps are taken for rewriting laws, restructuring the tax regime,
accessing and developing new skills and investing significantly in India.
OPPORTUNITIES FOR THE ORGANIZED RETAIL SECTOR IN INDIA
1. India’s booming economy is a major source of opportunity. It is the third largest in the world
in terms of purchasing power. India is the second fastest growing major economy in the
world.
2. India's huge population has a per capita income of Rs 44,345.
3. The proportionate increase in spending with earnings is another source of opportunity
4. With the Indian economy now expected to grow at over 8% and with average salary hikes of
about 15%, manufacturers and retailers of consumer goods and services can expect a major
boost in consumption.
5. The Demography Dynamics are also favourable as approximately 60 per cent of Indian
population is below the age of 30.
6. Increasing instances of Double Incomes in most families coupled with the rise in spending
power.
7. Increasing use of plastic money for categories relating to Apparel, Consumer Durable Goods,
Food and Grocery etc.
8. Increased urbanization has led to higher customer density areas thus enabling retailers to use
lesser number of stores to target the same number of customers. Aggregation of demand that
occurs due to urbanization helps a retailer in reaping the economies of scale.
9. With increased automobile penetration and an overall improvement in the transportation
infrastructure, covering distances has become easier than before. Now a customer can travel
miles to reach a particular shop, if he or she sees value in shopping from a particular location.
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MAJOR RETAILERS IN INDIA
Aditya Birla Retail Limited
Aditya Birla Retail Limited is the retail arm of Aditya Birla Group, a USD 28 billion
Corporation. The Company ventured into food and grocery retail sector in 2007 with the
acquisition of a south based supermarket chain “Trinethra”. Subsequently Aditya Birla Retail
Ltd. expanded its presence across the country under the brand "More" with 2 formats
Supermarket & Hypermarket. Supermarket More for you - Conveniently located in
neighborhoods, More supermarkets cater to the daily, weekly and monthly shopping needs of
consumers. The product offerings include a wide range of fresh fruits & vegetables, groceries,
personal care, home care, general merchandise & a basic range of apparels. Currently, there
are over 640 More supermarkets across the country. The Hypermarket More MEGASTORE -
is a one stop shopping destination for the entire family. Besides a large range of products
across fruits & vegetables, groceries and FMCG products, More MEGASTORE also has a
strong emphasis on general merchandise, apparels & CDIT. Currently, eight hypermarkets
operate under the brand More .MEGASTORE in Mysore, Vadodara, Aurangabad, Indore,
Bengaluru, Mumbai, New Delhi and Hyderabad. Aditya Birla Retail Limited currently has an
employee strength of over 11,000. More. has more than 1.6 million members as part of its
loyalty program.
Aditya Birla Retail Ltd provides customers a wide choice of products under its own labels like
Feasters, Kitchen's Promise, Enriche, Germex and Best of India. The objective is to provide
quality products at attractive price points to customers. Aditya Birla Retail was presented the
‘Retail Best Employer of the Year’ award at the Reid and Taylor Awards for Retail Excellence,
by the global jury of the Asia Retail Congress 2009. Aditya Birla Retail was also recognised for
impactful retail and visual merchandising at the same forum. The company bagged the ‘Most
Admired Retailer of the Year Award’ in the Smart Strategy category at the prestigious Images
Retail Awards 2009, during the India Retail Forum at Mumbai.
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Bharti Retail Ltd.
Bharti Retail Ltd. is a wholly owned subsidiary of Bharti Enterprises. Bharti Retail operates a
chain of multiple format stores. The company’s neighborhood format stores operate under the
"Easyday" brand and the compact hypermarket format under the “Easyday market” brand.
Recently the company has become more involved in the food economic sectors, with a joint
partnership in the agriculture company FieldFresh . FieldFresh Foods Pvt. Ltd. is a joint venture
between Bharti Enterprises and DMPL India Ltd. (a subsidiary of Del Monte Pacific Ltd.). The
company offers fresh fruits & vegetables and processed foods & beverages in the domestic as
well as international markets. The company currently operates 70 small-sized neighborhood
stores under the Easyday brand and Six mid-sized compact hypermarket stores under the
"Easyday Market"
Bharti Enterprises has tie-up with Walmart Stores Inc for wholesale, business-to-business and
cash-and-carry and back-end supply chain management operations in India to serve small
retailers, manufacturers and farmers. The JV launched its first B2B Best Price Modern
Wholesale cash-and-carry store in Amritsar in May 2009. A typical cash-and-carry store stand
between 50,000 and 100,000 square feet and sells a wide range of fresh, frozen and chilled foods,
fruits and vegetables, dry groceries, personal and home care, hotel and restaurant supplies,
clothing, office supplies and other general merchandise items. Which are available at competitive
wholesale prices, allowing retailers and business owners to lower their cost of operations. The JV
is expected to open 10 to 15 wholesale cash-and-carry facilities and employ approximately 6,000
– 7,000 people over the next three years. Currently, Best Price Modern Wholesale stores are
present in Amritsar, Zirakpur, Jalandhar and Kota.
Reliance Retail Limited
Reliance Retail Limited (RRL), is a subsidiary of RIL. Since its inception in 2006, Reliance
Retail Limited (RRL) has grown into an organisation that caters to millions of customers,
thousands of farmers and vendors. Based on its core growth strategy of backward integration,
RRL has made rapid progress towards building an entire value chain starting from the farmers to
the end consumers. More than 3 years into operation, RRL has now expanded its presence in
more than 85 cities across 14 states in India. RRL forged ahead with its expansion plans and
rolled out stores across the country. RRL’s footprint now spans a network of more than 1,000
stores. RRL operates several ‘value’ & ‘specialty’ formats. The ‘value’ formats that RRL
operates are: ‘Reliance Fresh’, a neighborhood concept, ‘Reliance Mart’, an all under one roof
supermarket concept & ‘Reliance Super’, a mini-mart concept. The ‘value’ formats offer a wide
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range and assortment of products required for daily household needs. The ‘specialty’ formats are:
‘Reliance Digital’, a consumer durables & information technology concept,’ Reliance Trends’
an apparel & accessories concept, ‘Reliance Wellness’, a health, wellness & beauty concept,
‘iStore by Reliance Digital’, an exclusive Apple products concept, ‘Reliance Footprint’, a
footwear concept, ‘Reliance Jewels’, a jewellery concept, ‘Reliance TimeOut’, a books, music &
entertainment concept,’ Reliance AutoZone’, an automotive products & services concept and
‘Reliance Living’, a home ware, furniture, modular kitchens, furnishings concept. RRL rapidly
expanded the stores network and it operates through strategic partnerships with world-class
companies such as Marks & Spencer and Pearl Europe. RRL also entered into an exclusive
distribution arrangement with Asics Corporation Japan to market Asics brands of shoes and
accessories in India. RRL has recently opened its flagship store under its franchise agreement
with Hamleys and plans to expand the store network in the coming year. RRL has also expanded
its presence in business-to business office supplies through its joint venture with Office Depot.
Pantaloon Retail
Pantaloon Retail is the flagship company of Future Group. Pantaloon Retail (India) Limited, is
India’s leading retailer that operates multiple retail formats in both the value and lifestyle
segment of the Indian consumer market. Headquartered in Mumbai, the company operates over
16 million square feet of retail space, has over 1000 stores across 73 cities and 65 rural locations
across India and employs over 30,000 people. The company’s leading retail formats are:
Food & Grocery: Big Bazaar, Food Bazaar
Home Solutions: Hometown, Furniture Bazaar, Collection-i
Consumer Electronics: e-zone
Rural Retail chain : Aadhaar
Shoes: Shoe Factory
Books, Music & Gifts: Depot
Health & Beauty Care: Star, Sitara
E-tailing: Futurebazaar.com
Entertainment: Bowling Co.
Future Value Retail Limited is a wholly owned subsidiary of Pantaloon Retail (India) Limited.
This entity has been created keeping in mind the growth and the current size of the company’s
value retail business, led by its format divisions, Big Bazaar and Food Bazaar. The company
operates 214 Big Bazaar stores, 170 Food Bazaar stores, among other formats, in over 90 cities.
Vishal Retail Ltd
Vishal Retail Ltd. is Flagship Company of Vishal Group which is engaged in Hyper market
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stores with an average area of 25,000 to 30,000 sq. ft. through an impressive chain of 172 fully
integrated stores spread over the area of more than 24,00,000 sq. ft. in around 110 cities across
India in 24 states. Vishal is one of fastest growing retailing groups in India. Its outlets cater to
almost all price ranges. The showrooms have over 7000 products range which fulfills all
household needs, and can be catered under one roof. Maintaining the highest standards in quality
and design, these stores have come to offer the finest fashion garments at down-to-earth price
structure. A fact that is better visible in the constant flow of shoppers all through the year. Under
the title of Vishal Mega Mart these stores have emerged as the regular haunts for the bargainhunters
and fashion enthusiasts alike. The turnover of the company for 09-10 was 1105 Crore.
Tata Group
Tata group is another major player in Indian retail industry with its subsidiary Trent, which
operates Westside and Star India Bazaar. Established in 1998, it also acquired the largest book
and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lakh sq. ft retail space across
the country.
Spencer's Retail Limited
Spencer's Retail Limited is a Flagship Company of RPG Enterprises. Spencer's Retail Limited is
one of India's largest and fastest growing multi-format retailer with footage of approximately 1
million square feet, 220 stores, including 30 large format stores across 35 cities in India.
Spencer's focuses on verticals like fresh fruit and vegetables, food and grocery, personal care,
garments and fashion accessories, home and office essentials, electrical and electronics Established in
1996, Spencer's has become a popular destination for shoppers in India with
hypermarkets and convenient stores catering to various shopping needs of its large consumer
base. The Spencer's Hyper stores are destination stores, of more than 15,000 sq. ft in size. They
offer everything under one roof. The merchandise ranges from fruits & vegetables, process ed
foods, groceries, meat, chicken, fish, bakery, chilled and frozen foods, garments and fashion
accessories, consumer electronics & electrical products, home decor and needs, office
stationeries, soft toys. On an average, a Spencer's hyper stocks 70,000 SKUs across 35,000
items. The Spencer's stores are neighborhood stores ranging from 1500 sq. ft. to 15000 sq. ft.
These stores stock the necessary range and assortment in fruit and vegetables, FMCG food and
non-food, staples and frozen foods and cater to the daily and weekly top-up shopping needs of
the consumer.
Music World is India's largest chain of music stores retailing the widest range of music & home
video products (International and Indian). Music World's product portfolio comprises of audio
CDs, DVDs and VCDs, CD-ROMs, gaming consoles & software of all the leading brands, and
other music accessories. The company is an important player in the home video market. Music
World has successfully forayed into high end 'personal audio' gadgets of several top brands. The
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company also offers DVD players, home theatre systems, speakers and headphones.
Piramal Group
Piramyd Retail is part of the Piramal Group. The promoters launched the apparel business in
1999 under Piramyd Retail and Merchandising Pvt. Ltd. (PRMPL) while its food; home &
personal care businesses (FHPC) were housed under Crossroads Shoppertainment Pvt. Ltd
(CSPL). As the apparel and food businesses individually reached a critical mass, the management
merged the two companies into Piramyd Retail Ltd. Pyramid also has a smaller format of stores
called TruMart that caters to Food and Personal Care products. Piramyd Retail currently has 5 Mega
stores and 8 TruMart stores mainly in Maharashtra. The company plans to increase these numbers to
17 Mega stores and 69 TruMarts by 2008.
K Raheja Group
Shoppers’ Stop, promoted by the real estate group K Raheja, was one of the first movers to have
set up a large retail outlet in New Delhi with international ambience. Shopper’s Stop Ltd now
has a considerable presence all over the country with over 7 lakh square feet of retail space and stocks
over 200 brands of garments and accessories. The stores are spread all over India with
presence in Mumbai, Delhi, Bangalore, Hyderabad, Jaipur, Pune , Kolkata, Gurgaon, Chennai &
Ghaziabad.
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SWOT Analysis of Retail Industry of India
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Challenges faced by Organized Retail Sector in India
Although the Organized Retail market does offer a vast untapped potential, it should also be
recognized that it is not that easy to operate in Retail market because of several problems.
Retailers need to address the challenges to become successful on long term.
1. The organized retail sector in India is still at a developmental stage, characterized by a very
small number of players trying to create a new paradigm. To become a flourishing industry,
the Indian retail sector has to attract leading Indian and foreign players to make substantial
investments.
2. Technology is one of the major challenges faced by organized retailers for efficient
management.
3. Shortage of skilled workforce in retail sector.
4. Retail shrinkage is also one of the major challenges. Retail shrinkage is the difference in the
value of stock as per the books and the actual stock available in the shop. The causes of
retail shrinkage are mainly employee theft, shoplifting, administrative errors and vendor
fraud. Effective online monitoring system need to be implemented.
5. Understanding customers in terms of customer behavior and loyalty is a difficult job.
Retailers need to implement effective customer relation management and loyalty program.
6. Distribution is an integral part of any retail organization. Delivering the right goods to the
right place at the right time is main task of distribution. Retail majors are under serious
pressure to improve their supply chain systems and distribution channels and reach the
levels of quality and service desired by customers. The lack of proper infrastructure and
distribution channels in the country results in inefficient processes
7. Organized retail outlets use very large volumes of electricity for a variety of applications
from lighting, air conditioning, escalators, cold storing, billing systems, lifts etc. As a result
of insufficient and inefficient power supply, a huge amount of private investment goes into
ensuring power backups. This makes it very difficult for organized retail to grow.
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8. The retailers in India are paying very high cost for real estate. This increases the
maintenance cost and reduce profit margins.
9. Competition from unorganized sector is another challenge facing the organized retail
industry in India.
10. As more and more organized retail outlets are dotting the Indian topography, competition is
no more restricted between organized and unorganized retailing. It is now quite evident
between organized retailers as well. Efficient and effective Loyalty programs, home delivery
of goods, customer retention strategies, offers, discounts etc are the order of the day.
CONCLUSION
India is being seen as a potential goldmine. It has been ranked 2nd
in Global Retail Development Index of 30 developing countries drawn up by A.T.Kearney.
Government of India has also opened the door for the retailing giants to enter into the markets. Many
foreign investors are also showing keen interest to enter into the Indian market. If FDI in retail sector
sees the light of the
day it will see many changes in the coming years. As more and more organized retail outlets are
dotting the Indian topography, competition is no more restricted between organized and unorganized
retailing, it is now quite evident between organized retailers as well.
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Chapter III
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Company Profile
Big Bazaar , the flagship retail chain of the Future Group is a chain of hypermarket in India. As of
June 2, 2012 there are 214 stores across 90 cities and towns in India covering around 16 million sq.ft.
of retail space. Big Bazaar is designed as an agglomeration of bazaars or Indian markets with clusters
offering a wide range of merchandise including fashion and apparels, food products, general
merchandise, furniture, electronics, books, fast food and leisure and entertainment sections.
Big Bazaar s journey began in October 2001, when the young, first generation entrepreneur Kishore
Biyani opened the country’s first hypermarket retail outlet in Kolkatta (then Calcutta). In the same
month, two more stores were added one each in Hyderabad and Mumbai, thus starting on a successful
sojourn which began the chapter of organized retailing in India.
Though Big Bazaar was launched purely as a fashion format including apparel, cosmetics, accessory
and general merchandise, over the years Big Bazaar has included a wide range of products and service
offerings under their retail chain. The current formats include Big Bazaar, Food Bazaar, Electronic
Bazaar and Furniture Bazaar.
Most Big Bazaar stores are multi-level and are located in stand-alone buildings in city centers as well
as within shopping malls. Food Bazaar, a supermarket format was incorporated within Big Bazaar in
2002 and is now present within every Big Bazaar as well as in independent locations. A typical Big
Bazaar is spread across around 50,000 square feet (4,600 m2) of retail space. While the larger
metropolises have Big Bazaar Family centres measuring between 75,000 square feet (7,000 m2) and
160,000 square feet (15,000 m2), Big Bazaar Express stores in smaller towns measure around 30,000
square feet (2,800 m2).Big Bazaar has the facility to purchase products online through its official web
page, and offers free shipping on some of their products
Target Audience:
Higher and middle class family
large and growing young working population is preferred customer segment
Big Bazaar specially targets working women and home makers who are primarily
decision makers
Group Vision:
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Future Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the
most profitable manner.
Group Mission:
It shares the vision and belief that its customers and stakeholders shall be served only bycreating and executing future scenarios in the consumption space leading to economic development.
It will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses.
It will infuse Indian brands with confidence and renewed ambition.
It will be efficient, cost- conscious and committed to quality in whatever it does.
It will ensure that its positive attitude, sincerity, humility and united determination shallbe the driving force to make it successful.
The tagline of Future Group is “Rewrite Rules, Retain Values”
On successful completion of ten years in Indian retail industry, in 2011, Big Bazaar has come up a
new logo with a new tag line: ‘Naye India Ka Bazaar’, replacing the earlier one: 'Isse Sasta Aur
Accha Kahin Nahin'.
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Chapter IV
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Theoretical Framework of the study
Service quality can be defined as the discrepancy between customer expectations and perceptions (Parasuraman et al. 1985:42; Parasuraman, Zeithaml & Berry 1988:16-17). A service quality model was developed by Parasuraman et al. (1985:47), categorizing the ten dimensions that customers use in evaluating the quality of a service. These ten dimensions are tangibles, reliability, responsiveness, competence, access, courtesy, communication, credibility, security, and understanding/knowing the customer. These dimensions enable the measurement of the gap between the service quality expected by the customer and that of the customer’s perception of the service delivered (Parasuraman et al. 1985:44). These dimensions were further refined down to the five critical dimensions (SERVQUAL) of tangibles, reliability, responsiveness, empathy and assurance (Parasuraman et al. 1988:20).
Customer Gap : the difference between customer expectation and perceptions
Gap 1 : The listening Gap – Not Knowing what customers expect
Gap 2 : The Design and Standard Gap- Not having the right service design and standards
Gap 3 : The Service Performance Gap- Not delivering to Service Standards
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Gap 4 : The Communication Gap – Not matching performance to promises
The central focus of gaps model is the customer gap, the difference between customer expectations
and perceptions. Expectations are the reference points customers have coming into a service
experience; perceptions reflect the service as actually received. The idea is that the firms will have to
close this gap- between what is expected and what is received-to satisfy their customers and build
long term relationships with them.
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Chapter V
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Analysis of the study
Serviqual Score is prepared on the basis of Data collected from 75 samples , in which 53.3 percent
are males and 46.7 female. Among that major portion are 29.3 percent is of age group 25-34 years ,
22.7 percent is same for age groups 18-24 and 35-44 years.
GENDER
Frequency Percent Valid Percent Cumulative
Percent
Valid
MALE 40 53.3 53.3 53.3
FEMALE 35 46.7 46.7 100.0
Total 75 100.0 100.0
AGEGROUP
Frequency Percent Valid Percent Cumulative
Percent
Valid
BELOW 18yrs 4 5.3 5.3 5.3
18yrs - 24yrs 17 22.7 22.7 28.0
25yrs-34yrs 22 29.3 29.3 57.3
35yrs-44yrs 17 22.7 22.7 80.0
45yrs-54yrs 12 16.0 16.0 96.0
55 & above 3 4.0 4.0 100.0
Total 75 100.0 100.0
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Reliability Dimension – Perception of Customers
GENDER PROMISE PROBLEMSOL
VE
PERFORMENC
E
CUTOMERINF
ORMATION
MALE
Mean 4.82 4.90 4.85 4.83
N 40 40 40 40
Std. Deviation 1.196 1.105 1.210 1.083
FEMALE
Mean 5.17 5.34 4.89 4.77
N 35 35 35 35
Std. Deviation 1.043 1.162 1.105 1.140
Total
Mean 4.99 5.11 4.87 4.80
N 75 75 75 75
Std. Deviation 1.133 1.146 1.155 1.103
The average score for perception of customers in reliability dimension is 4.94
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Responsiveness Dimension
GENDER PROMPTSERVI
CE
EMPLOYEEWIL
LINGNESS
NEVRBUSYMP
LOYEE
MALE
Mean 4.88 4.90 4.65
N 40 40 40
Std. Deviation 1.285 1.236 1.167
FEMALE
Mean 4.63 5.06 4.66
N 35 35 35
Std. Deviation 1.190 1.327 1.305
Total
Mean 4.76 4.97 4.65
N 75 75 75
Std. Deviation 1.239 1.273 1.225
The average score for perception of customers in Responsiveness dimension is 4.79
Assurance Dimension
GENDER CONFIDENCE SAFETRANSA
CTIONS
CONSISTENCY
COURTEOUS
EMPLOYEEKN
OWLEDGE
MALE
Mean 4.25 5.50 4.65 4.53
N 40 40 40 40
Std. Deviation 1.316 1.414 1.331 1.281
FEMALE Mean 4.63 5.77 4.97 4.69
N 35 35 35 35
Std. Deviation 1.330 .942 1.150 1.157
Total
Mean 4.43 5.63 4.80 4.60
N 75 75 75 75
Std. Deviation 1.327 1.217 1.252 1.219
The average score for perception of customers in Assurance dimension is 4.86
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Empathy Dimension
GENDER INDIVIDUALAT
TENTION
BIGBAZAARINT
EREST
UNDERSTANDI
NGNEEDS
MALE
Mean 4.47 4.30 4.38
N 40 40 40
Std. Deviation 1.358 1.114 .979
FEMALE
Mean 4.63 4.31 3.97
N 35 35 35
Std. Deviation 1.190 1.022 1.224
Total Mean 4.55 4.31 4.19
N 75 75 75
Std. Deviation 1.277 1.065 1.111
The average score for perception of customers in Empathy dimension is 4.35
Tangibles Dimension
GENDER FACILITIES FACILITIESVIS
UALAPPEAL
MPLOYEENEAT
NESS
SERVICEMATE
RIALAPPEAL
CONVINIENTTI
ME
MALE
Mean 4.63 5.03 5.13 5.50 6.08
N 40 40 40 40 40
Std. Deviation 1.254 .920 1.159 .877 1.185
FEMALE
Mean 5.06 5.37 5.09 5.40 6.37
N 35 35 35 35 35
Std. Deviation 1.187 1.031 1.011 .881 .646
Total Mean 4.83 5.19 5.11 5.45 6.21
N 75 75 75 75 75
Std. Deviation 1.234 .982 1.085 .874 .977
The average score for perception of customers in Tangibles dimension is 5.35
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SERVQUAL score for Service Quality at Big bazaar, Hyderabad
Dimension Perception Score Expectation Score Gap
Reliability 4.94 6 -1.06
Responsiveness 4.79 6 -1.21
Assurance 4.86 6 -1.14
Empathy 4.35 6 -1.65
Tangibles 5.35 6 -0.65
The Customer Gap is the centerpiece of the Gaps Model. It represents the difference between
customer expectations and perceptions of service performance.
The model suggests that closing this gap by matching or exceeding customer expectations will result
in the achievement of service quality from the customer’s perspective.
Relative importance on the basis of Gap score
1. Empathy dimension -1.65
2. Responsiveness dimension -1.21
3. Assurance dimension -1.14
4. Reliability dimension -1.06
5. Tangibles dimension -0.65
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1.Empathy dimension
From the above table we can understand that the empathy dimensions gap score is maximum.
Empathy is defined as caring, individual attention the firms provides its customers .The essence of
empathy is conveying, through personalized or customized services, that customers are unique and
special. Customers want to feel understood by and important to firms that provide service to them.
Questionnaire Perception Expectation Gap
Big bazaar has Employees who gives you Individual attention
4.55 6 -1.45
Big bazaar has your Best interest
at heart.
4.31 6 -1.69
Employees of Big bazaar understand Your specific needs.
4.19 6 -1.81
The overall gap in Empathy dimension is -1.65 , that consist of above 3 questions.
Among that , the main gap is with Employees understanding specific needs of customers (-1.81) .
We can train the employee to understand better the need of customer.
Counsel the employees once a week (5 to 10 minutes) regarding customer relationship.
Educate employee according to specific sections specially part timers ( product knowledge)
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2.Responsiveness Dimension
Questionnaire Perception Expectation Gap
Employees in the Big Bazaar give you Prompt service.
4.76 6 -1.24
Employees in the Big Bazaar are alwayswilling to help you.
4.97 6 -1.03
Employees in the Big Bazaar are never too busy to help to respond
to your request
4.65 6 -1.35
The overall Gap in the Responsiveness dimension is -1.21, that consist of above 3 questions .
Among that , the main gap is with third question (-1.35). The employees are too busy especially
during the peak hours. This dimension emphasizes attentiveness and promptness in dealing with the
customer requests, questions, complaints and problems
To excel on the dimensions of responsiveness, organization need well-staffed customer services
departments as well as responsive front-line people in all contact positions and more staff during the
peak hours .
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3.Assurance Dimensions
Questionnaire Perception Expectation Gap
The behavior of the employees in the Big bazaar Instills confidence in you
4.43 6 -1.67
You feel safe in your transactions- with Big Bazaar..
5.63 6 -.37
Employees in Big bazaar are consistently Courteous with you.
4.80 6 -1.20
Employees in Bigbazaar have the Knowledge to answer your questions.
4.60 6 -1.40
The overall Gap in the Responsiveness dimension is -1.14 , that consist of above 4 questions.
Assurance: Inspiring trust and confidence. Assurance is defined as employees knowledge and
courtesy and the ability of the firm and its employees to inspire trust and confidence.
Among those four questions , the main gap is with the behavior of the employees in the Big bazaar
Instilling confidence in customers (-1.67)
This gap can be filled by
Training an educating the employees according to their departmental product specification
Motivating them by having ‘employee of the day’ concept
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4.Reliability dimension
Questionnaire Perception Expectation Gap
When Big bazaar Promises to do something By a certain time, It does so .
4.99 6 -1.01
When you have a problem Big bazaar shows a sincere interest in solving it.
5.11 6 -.89
Big bazaar performs the service right the First time.
4.87 6 -1.13
Big bazaar keep customers informed about When services will be performed
4.80 6 -1.20
The overall Gap in the Responsiveness dimension is -1.06, that consist of above 4 questions.
Reliability means that the company delivers on its promises-promises about delivery, service
provision, problem resolution, and pricing. Customers will be satisfied with organizations that keep
their promises about the service outcomes and core service attributes.
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5.Tangibles Dimension
Questionnaire Perception Expectation Gap
Big Bazaar has modern looking Equipments and facilities
4.83 6 -1.17
Big bazaar’s physical facilities areVisually appealing
5.19 6 -0.81
Big bazaar’s Employees
appear neat
5.11 6 -0.89
Materials associated with the-Service (such as pamphlets or statements) Are visually appealing
5.45 6 -0.55
Big Bazaar has convenient
business hours
6.21 6 .21
The overall Gap in the Tangibles dimension is -.65, that consist of above 5 questions.
Tangibles are defined as the appearance of physical facilities, equipment, personnel, and
communication materials. All of these provide physical representations or images of the service that
customers, particularly new customers, will use to evaluate quality. According to the data collected,
the area need to take care in the tangibles dimension is about big bazaar’s modern looking equipments
and facilities. The gap score is -1.17. All modern equipment should be working at the time they are
needed.
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Chapter VI
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SummaryFinding out what customers perception and expectation is essential to provide service quality .By
analyzing the collected data we can monitor and track service performance in the store , asses the
gap between customer expectations and perceptions .The dimensions Reliability, Responsiveness,
Assurance, Empathy and Tangibles represents how consumers organize information about service
quality in their minds. Analyzing these dimensions will help to monitor changing customer
expectations in an industry and helps to forecast future expectations of the consumers.
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Conclusion In this report, service quality and its model of gaps were reviewed. SERVQUAL methodology as an
Analytical approach for evaluating the difference between customers' expectations and perceptions of
quality was also studied. The results of the current study illustrate that organizations can at least
assess five dimensions of service quality to ascertain the level of services provided, and to determine
which dimensions need improvement. In future we can work on these dimensions to minimize the gap
and meeting customers’ expectations so as to increase customer satisfaction.
SuggestionsIn order to improve service quality, it is necessary to contact employees regularly and assess their
service experiences on each dimension and managers could identify the weakness in order to make
improvements.
For closing overall 5 dimension gaps
Train the employee to understand better the need of customer.
Counsel the employees once a week (5 to 10 minutes) regarding customer relationship.
Educate employee according to specific sections specially part timers ( product knowledge).
front-line people in all contact positions.
More staff during the peak hours.
Motivating employee by having ‘Employee of the day’ concept.
All modern equipment should be working at the time they are needed especially escalator.
Annexure
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Questionnaire
SERVQUAL : A Multidimensional Scale to Capture Customer Perceptions and Expectations of Service Quality
Dear Customer,
My name is Palak Marodia. I am an MBA Student at the Institute Of Public Enterprise, Hyderabad. Currently I’m doing a research as part of my Internship, on the topic: Servqual Gap analysis on Customer perceptions and service quality at Big bazaar, Hyderabad
I hope that you can spare a few minutes to complete the following questions for the data which will be used for the analysis.
Thanking you for your Co-operation
Name : …………………………………………………………….
Gender : Male / Female
Age : Below 18
18-24
25-34
35-44
45-54
55 and above
Marital Status : Single / Married
Contact No : …………………………………………………………………
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Instructions : Please select a Number (from 1-7) that suites your opinion. Please do remember that the data collected will only be used for research purposes.
A: Reliability Dimension
Strongly Disagree Strongly agree
1. When Big bazaar Promises to do something
By a certain time, It does so . 1 2 3 4 5 6 7
2. When you have a problem Big bazaar shows
a sincere interest in solving it. 1 2 3 4 5 6 7
3. Big bazaar performs the service right the
first time. 1 2 3 4 5 6 7
4. Big bazaar keep customers informed about
When services will be performed. 1 2 3 4 5 6 7
B:Responsiveness Dimension
5. Employees in the Big Bazaar give you
Prompt service. 1 2 3 4 5 6 7
6. Employees in the Big Bazaar are always
willing to help you . 1 2 3 4 5 6 7
7. Employees in the Big Bazaar are never too
busy to help to respond to your request.
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1 2 3 4 5 6 7
C: Assurance Dimension
8. The behavior of the employees in the Big bazaar
Instills confidence in you. 1 2 3 4 5 6 7
9. You feel safe in your transactions-
with Big Bazaar. 1 2 3 4 5 6 7
10. Employees in Big bazaar are consistently
Courteous with you. 1 2 3 4 5 6 7
11. Employees in Big bazaar have the
Knowledge to answer your questions.
1 2 3 4 5 6 7
D: Empathy Dimension
12. Big bazaar has Employees who gives you
Individual attention 1 2 3 4 5 6 7
13 Big bazaar has your Best interest at heart
1 2 3 4 5 6 7
14.Emloyees of Big bazaar understands
Your specific needs. 1 2 3 4 5 6 7
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E:Tangibles Dimension
15. Big Bazaar has modern looking
Equipments and facilities 1 2 3 4 5 6 7
16.Big bazaar’s physical facilities are
Visually appealing 1 2 3 4 5 6 7
17. Big bazaar’s Employees appear neat
1 2 3 4 5 6 7
18.Materials associated with the-
Service (such as pamphlets or statements)
Are visually appealing 1 2 3 4 5 6 7
19. Big Bazaar has convenient business hours
1 2 3 4 5 6 7
20. Suggestions : ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
Thank you
Bibliography Valarie A. Zeithmal & Mary Jo Bitner (2003) Service Marketing-Integrating customer focus across the firm ,TATA McGrawn Hill edition
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Multiple Item Scale for Measuring consumer perceptions of Service quality, Volume 64, number1 ,spring 1988 –A Parasuraman , Valarie A. Zeithmal ,Leonard .L. Berry,Journel of Retailing
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