It explores the role of the Government of India in the Industry growth and the need for further reforms. In India the vast middle class and Its almost untapped retail Industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the retail industry in India to grow faster. The paper includes growth of retail sector in India, strategies, strength, and opportunities of retail stores, retail format in India, recent trends, and opportunities and challenges. This paper concludes with the likely impact of the entry of global players into the retail industry in India.
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It also highlights the challenges faced by the industry In near future. Design/ Methodology/Approach -? A questionnaire related to the expectations and perception of the customers visiting various retail outlets in Delhi? An analytical detail study of various internet sources and related journal and articles was done. The Chi – Square Test as a statistical tool has been used. Findings – The result of the data analysis disclosed that majority of visitors are from younger generation, so the retail outlets may consider their requirement for better profitability.
Further organized retailers are advised to provide sufficient parking space so that visitors may feel comfortable to do shopping. Research Limitation/laminations – As Judgmental sampling Is used, all the non-probability errors would be there. Sample size being 150, it is not necessary that it truly represents the population/ universe. Some people might not have given accurate responses, which affects the results of the study. Some respondents have not taken the schedule seriously, and hence, the researcher had to discard those responses.
Practical Implications – This research can be useful for organized retail outlets. This research will help the various organized retail outlets for identifying the need of customers, and improve the image of organized retailers. Originality/Value – This paper is totally based on the primary data, and findings are valuable for retail outlets for further decision making. Key Words: Customer satisfaction, Customer perceptions, Determinants of customer satisfaction, Retail industry. * ** Assistant Professor, Delhi School of Professional Studies and Research (Approved by CITE), Delhi.
Assistant Professor, Delhi School of Professional Studies REPOSE Mannish Madman and SIAM Kumar’ Introduction The retail industry in India is the largest among all the industries, accounting for over 10 per cent of the country GAP, and around 8 per cent of the employment. The retail industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies, and compete with them.
The retail industry in India is gradually inching its way towards becoming the next boom industry. The total concept and idea of shopping has undergone an attention drawing change in terms of format and customer buying behavior, ushering in a revolution in shopping in India. Modern retailing has entered into the retail market in India as is observed in he form of bustling shopping centers, multi-storied malls, and the huge complexes that offer shopping, entertainment and food all under one roof.
A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working women population and emerging opportunities in the services sector are going to be the key factors in the growth of the organized retail sector in India. The growth pattern in organized retailing and in the consumption made by the Indian population will follow a rising graph helping the newer businessmen to enter the retail industry in India.
In India the vast middle class and its almost untapped retail industry are the key attractive forces for global retail giants wanting to enter into newer markets, which in turn will help the India retail industry to grow faster. Indian retail is expected to grow 25 per cent annually. Modern retail in India could be worth SIS$ 175-200 billion by 2016. The food retail industry in India dominates the shopping basket. The mobile phone retail industry in India is already a US$ 16. 7 billion business, growing at over 20 per cent per year.
The future of the retail industry in India looks promising with the growing of the market, with the overspent policies becoming more favorable, and the emerging technologies facilitating operations. Retail and real estate are the two booming sectors of India in the present times. And if industry experts are to be believed, the prospects of both the sectors are mutually dependent on each other. Retail, one of Indian’s largest industries, has presently emerged as one of the most dynamic and fast paced industries of our times with several players entering the market.
Accounting for over 10 per cent of the country GAP, and around eight per cent of the employment, retailing in India is gradually inching its way toward becoming the next boom industry. As the contemporary retail sector in India is reflected in sprawling shopping centers, multiplex- malls and huge complexes offering shopping, entertainment and food all under one roof, the concept of shopping has altered in terms of format, and consumer buying behavior, ushering in a revolution in shopping in India. This has national and global players investing in developing the infrastructure and construction of the retailing business.
The trends that are driving the growth of the retail sector in India are: I Ill Low share of organized retailing Falling real estate prices Increase in disposable income and customer aspiration Increase in expenditure for luxury items Literature Review As service industry has contributed significantly to global economy in the past few decades, service quality draws attention of many practitioners and researchers. In asses, in the attempt to define service quality and develop a model of service quality, Pursuant et al. , 1985 conducted an exploratory investigation.
The results showed that regardless of the type of service, consumers used basically the similar criteria in evaluating service quality (Pursuant et al. , 1985). They labeled those 10 criteria as “Service Quality Determinants”. Since then, service quality was defined through 10 dimensions: Access, Communication, Competence, Courtesy, Credibility, Reliability, Responsiveness, Security, Tangibles and Understanding/Knowing the Customers. Later, they were simplified into five dimensions including Tangibles, Reliability, Responsiveness, Assurance and Empathy.
With an argument that 118 Delhi Business Review X Volvo. 13, No. 1 Unary – June 2012) Pursuant et al. (1988) gap theory of service quality was supported by little empirical or theoretical evidence. Crooning and Taylor (1992) developed a “performance-based” service quality measurement scale called SEVERER. The major difference between these two scales is that SURVIVAL personalities service quality by comparing the perception of the service received with expectations, while SERVERS maintains only the perceptions of service quality.
The SERVERS scale consists of 22 perception items, excluding any consideration of expectations. To contextually fit the retail industry, Deborah et al. (1996) developed retail service quality model (ERRS). Based on SERVERS, ERRS includes 28 item scales of which 17 items are from SERVERS and 11 items are developed by qualitative research. It composes of 5 dimensions, namely: 1. Physical Aspect: Retail store appearance and store layout; 2. Reliability: Retailers keep their promises and do the right things; 3.
Personal Interaction: Retail store personnel are courteous, helpful and inspire confidence in customers; 4. Problem Solving: Retail store personnel are capable to handle returns and exchanges, customers’ problems and complaints; 5. Policy: Retail stores policy on merchandise, quality, parking, operation hours and credit cards. Clark and Wang (2000) conducted a study to compare customer satisfaction between American and Korean discount stores. The questionnaire was based on items which were used in Westbrook study. Items were used to measure customers’ satisfaction with retail outlets in each country: helpfulness of sales person, friendliness, number of sales people, politeness, store layout, ease in finding things, cleanliness, assortment of department, quality level, merchandise selection, fashionableness, willing to exchange, fairness of adjustment, location, other store customer. Finding of paper was that the customers in both countries were mainly affected by merchandise value and advertisement factors. Babushka (2002) investigated the customer rating of importance of several attributes associated with super market shopping.
The researcher also reviewed the satisfaction rating of attributes. The results suggested that since retail format had become very standardized, corporate reputation was rated high and might be a source of sustainable competitive advantage. Accessibility was considered important, as was quality of service, especially the friendliness and efficiency of check out personnel. Frisson and Hickman (2003) found whether the different types of loyalty program attributes affect customer stores satisfaction when it was considered in term of retail offer.
This study found that both hard and soft attributes were significant predictors of satisfaction with the merchandise, trading format, and customer service and customer communication of store. Gaul (2005) concluded that consumers satisfied with the stores’ service quality are most likely to remain loyal. Service quality is being increasingly perceived as a tool to increase value for the customer; as a means of positioning in a competitive environment to ensure consumer satisfaction, retention and patronage.
Despite its strategic importance, Indian retailers did not have an appropriate instrument to measure service quality. This study examined the Retail Service Quality Scale (ERRS) developed in the U. S. For applicability to Indian retail. This scale had been found appropriate in a variety of settings across different countries such as South Africa and Singapore, and across a variety of store types such as supermarkets, department stores and hyper stores. ‘Titer (2006) focused on the expectations, experiences, and perceptions of high school girls to see what attracts them to the malls.
The aim was to identify image attributes of participants’ ideal shopping malls, shopping motive, and expectations of high school girls. Six factors related with the mall itself that shaped the girls’ experience, and were important for their selection of favorite malls were short listed: merchandising, entertainment, atmosphere, locations and accessibility, security and personal service. 119 Mannish Madman and SIAM Kumar’ Neat (2007) aimed at identifying components of retail service quality in Vietnamese Supermarkets.
The results provide statistical evidence to support hypothesis on the significantly positive impact of service personnel, physical aspect and policy on the overall evaluation of service quality. On the other hand hypothesis on the positive impact of reliability on the overall evaluation of service quality was not supported by the empirical data in the study. Mainland (2008) conducted study to survey customers’ satisfaction of Metro Mall at Summit station, and to explore the level of customer’s satisfaction towards the existing service of Metro Mall at Summit Station.
The finding of the study revealed that food and beverage shops, reasonable compared with the product quality, modern decoration and location of mall, word of mouth; availability of discounts upon and prompt and attentive services of sales persons were the main factors influencing customers on visiting Metro Mall at Summit Station. Retail Customer Satisfaction Model (ARCS) I Easy accessibility of the store I I I I I Need satisfying product/services Sought product at reasonable price (discounts will add to satisfaction) Assistance in purchase decision Shopping ambiance (free walking area, lighting, etc. After sales assistance Objectives of the Study The objectives of research are as follows: (a) To study the relationship between product characteristics and customer satisfaction. B) To study the relationship between price factors on customer satisfaction. (c) To study the relationship between physical aspects and customer satisfaction. (d) To study the relationship between promotional schemes and customer satisfaction. (e) To study the relationship between personnel interaction and customer satisfaction.
Hypotheses Retail customer satisfaction consists of five dimensions: Characteristics of Product, Price, Physical Aspects, Promotion and Personal Interaction. The above said dimensions are based on ERRS and suggestions from customers received during the survey. Hypothesis: H (1) : There is a significant relationship between product characteristics and customer satisfaction. Hypothesis: H (2): There is a significant relationship between price factors on customer satisfaction. Hypothesis: H (3): There is a significant relationship between physical aspects and customer satisfaction.
Hypothesis: H (4): There is a significant relationship between promotional schemes and customer satisfaction. Hypothesis: H (5): There is a significant relationship between personnel interaction and customer satisfaction. 120 The type of research conducted here is descriptive in nature. The research is done on the retail customers of Delhi, who visited various retail outlets of Delhi. The size of sample was 150. The sampling element here in the research is the individual respondent. The technique of sampling used here in the research is the Judgmental sampling.
The study is based on the primary data. Questionnaire was designed for collecting the responses of the customers who visited various retail outlets in Delhi recently. Appropriate modifications in contents and format of the questionnaire were then incorporated in the light of experience gained during the survey, to finalize the questionnaire. The questionnaire contained questions on the related aspects regarding their demographic and socio economic background, influencing factors and other related aspects. A five point liker scale questionnaire was used here in survey.