Objective

To measure service quality at leading retail chains in Bangalore city using SERVQUAL model To identify the Service Quality Gaps at Reliance Store and Spar Hyper Market Identify the improvement areas at these retail stores

Introduction to Industry

Retail industry in India is at the crossroads. The future seems to be promising: 1. Market is growing. 2. Government policies are becoming more favorable. 3.Emerging technologies are facilitating operations. The whole concept of shopping has altered in terms of format and consumer buying behavior. The sector is the largest source of employment after agriculture.

COMPERATIVE PENERATION OF ORGANIZED RETAIL

Source: Ernst &Young, The Great Indian Retail Story, 2006

SERVEQUAL Model
Conceptual model developed by Parusuraman in 1985.
Five dimensions of service quality:

Reliability: This refers to the ability of the company to perform the promised service dependably and accurately. Customers expect that companies will do what they say and they will be when they say. Tangibles: This refers to the appearance of the physical facilitates, equipment and personnel, and communication material. Responsiveness: This refers to willingness of the employees to help customers and provide prompt service. Assurance: This factor is linked to several minor factors such as competence, courtesy, credibility and security. Empathy: Empathy refers to the caring, individualized attention the firm provides to customers. It includes access, communication and understanding.

Service Quality Gaps

Gap 1: Customers expectation versus management perceptions: As result of lack of a marketing research orientation, inadequate upward communication and too many layers of management. Gap 2: Management perceptions versus service specifications: As a result of inadequate commitment to service quality, a perception of unfeasibility, inadequate task standardization and absence of goal setting. Gap 3: Service specifications versus service delivery: As a result of role ambiguity and conflict, poor employee- job fit and poor technology-job fit, inappropriate supervisory control systems, lack of perceived control and lack of team work. Gap 4: Service delivery versus external communication: As a result of inadequate horizontal communications and propensity to over-promise. Gap 5: The discrepancy between customer expectations and their perceptions of the service delivered: As a result of the influences exerted from the customer side and the shortfalls (gaps) on the part of the service provider. In this case customer expectations are influenced by the extent of personal needs, word of mouth recommendations and past service experience.

SERVQUAL MODEL

Scale

Likert Scale used SA (5) Strongly Agree. A (4) Agree N (3) Not Agree. D (2) Disagree. SDA (1) Strongly Disagree.

Data Consistency: Cronbach alpha is more than 0.6

Professsion Age Student

20-30 Businessman 30-40 Govt.Service Marital GenderStatus 40-50 Private Service Married Male 50-60 Retired Not Married Female >60 Total Total Total Total

SPAR SPAR SPAR SPAR Percentage Frequency Frequenc Percentage y 12 Frequenc Frequenc 17 y y 10 21 11 12 22 46 37 6 5 14 23 4 60 60 60 60 20.00 28.33 Percentage 16.67 Percentage 35.00 18.33 20.00 36.67 76.67 61.67 10.00 8.33 23.33 38.33 6.67 100.00 100.00 100.00 100.00

RELIANCE RELIANCE RELIANCE RELIANCE Percentage Frequency Frequency 8 Percentage 13.33

14 Percentage 23.33 Frequency 15 25.00 Frequency Percentage 26 43.33 10 16.67 14 27 4734 6 0 1326 0 60 60 60 60 23.33 45.00 78.33 56.67 10.00 0.00 21.67 43.33 0.00 100.00 100.00 100.00 100.00

SPAR S.No Dimensions E P Gap (EP) Rank E P

RELIANCE Gap (EP) Rank

TANGABLE The store appearance is good?

1

3.80
3.63 4.07 4.02 3.47 4.12

4.18
4.28 4.05 4.37 4.00 4.14 4.18

-0.38
-0.65 0.02 -0.35 -0.53 -0.03 0.43

1
1 7 4 3 3 13

3.65
3.90 3.62 3.68 3.40 3.70 3.93

3.89
4.00 3.88 3.88 3.80 3.83 3.87

-0.24
-0.10 -0.27 -0.20 -0.40 -0.13 0.07

1
8 3 5 1 3 12

The bill paying process in the 2 store is good? The layout makes easier to find 3 things?
SPAR follows hygiene 4 conditions? EMPATHY Are the staffs polite? 1 Are you getting personal attention and proper response? 2 Do staffs have proper product 3 knowledge? Are staffs have Guiding and 4 Persuading Nature?

4.62

3.77 3.92

4.10 4.45

-0.33 -0.53

5 3

3.73 3.60

3.87 3.88

-0.13 -0.28

7 2

4.17

3.83

0.33

11

3.55

3.72

-0.17

RESPONSIVENESS Are the employees able to respond to your request? A hand of help provided during the time of inconvenience

4.04 3.88 4.20 4.32 4.27 4.27 4.42 4.13 4.20 3.72

4.25 4.38 4.12 3.86 3.78 4.20 3.58 4.08 3.73 3.40

-0.21 -0.50 0.08 0.46 0.48 0.07 0.83 0.04 0.47 0.32

2 4 9 5 14 8 15 4 12 10

3.68 3.75 3.60 3.78 3.87 3.77 3.72 3.79 4.02 3.78

3.85 3.88 3.82 3.74 3.92 3.72 3.60 3.67 3.65 3.52

-0.18 -0.13 -0.22 0.04 -0.05 0.05 0.12 0.12 0.37 0.27

2 7 4 4 10 11 13 5 15 14

ASSURANCE Does the store assure you the good and fresh quality? Do employees provide you the service you looking for?
Do you get motivated by the service that is being provided? RELIABILITY Whatever promises organization makes, delivers it also?

Do organization delivers services as per promises made?

Is merchandising done properly? Is the accounting procedure i.e. billing & records, kept properly?

4.10

4.72

-0.62

3.60

3.67

-0.07

4.48

4.48

0.00

3.75

3.85

-0.10

Factor Analysis
Customer Preferences - No. of responses on preferences
Variables 1. Price of the product 1st 28 2nd 25 3rd 25 4th 18 5th 15 6th 11 7th 8 8th 2 9th 0

2. Discounts and Promotional offers

3. Quality of the product 4. Ambiance of the store 5. Service provided by the Staff 6.More Choices 7.Guarantee on products/services 8.Hassel Free shopping 9.Parking facility

8
21 1 9 16 13 3 1

21
13 7 12 11 6 2 3

16
14 11 8 5 6 10 5

14
11 9 21 10 7 6 4

1
26 11 7 3 8 22 7

21
17 5 16 9 8 0 13

10
23 21 3 9 8 1 17

20
8 13 10 7 18 13 9

12
0 23 16 33 11 2 3

Factor Analysis
Var0 1 Factor 1 Factor 2 Factor 3 Factor 4 Var0 2 Var0 3 Var0 4 Var0 5 Var0 6 Var0 7 Var0 8 Var0 9 Factor Name Premium Class Middle Class Economy Class Low risk taking class

Recommendations & Improvements

1. Empathy related - Are the staff polite? This area requires immediate attention and Reliance & SPAR needs to train its staff on customer service and soft skills. 2. Assurance related- Both the stores need to improve quality dimensions such as prompt response and Quality of the product and effective communication with the customer. 3. Reliability related Both the stores need to improvement on reliabilityrepeatability of performance and promises made.

Thank You