A COMPREHENSIVE PROJECT REPORT ON A Study Of A Measurement Of Customer orientation Of Salesperson Submitted to :Chimanbhai Patel Institute of Management & Research

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

In

Gujarat Technological University

UNDER THE GUIDANCE OF Prof: Devina Upadhyay

Submitted by: Tausif odiya(117680592002) Amit Singh(117680592060)

[Batch : 2011-13] MBA SEMESTER III/IV

Shri Chimanbhai Patel Institute Of Management & Research
MBA PROGRAMME

Affiliated to Gujarat Technological University Ahmedabad

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Students Declaration
We Tausif odiya, Amit singh, hereby declare that the report for Comprehensive Project entitled A Study Of Measurement Of Customer orientation Of Salesperson is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged.

Place : .. Date :

Institutes Certificate
Certified that this Comprehensive Project Report Title A Study Of Measurement Of Customer orientation Of Salesperson is the bonafide work of Mr.Odiya

Tausif(117680592002), Amit Singh (117680592060), who carried out the research under my supervision. I also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Prof. Devina upadhyay ( Faculty of CPIMR)

Dr. Ashwin Dave (Coordinator of CPIMR)

PREFACE

It is crucial to have management knowledge and management skill for running the business smoothly. Being management students we get theoretical knowledge from books but it is not enough for selfdevelopment and improvement but we also to have a practical knowledge so that we can improve and develop our self. It gives us an opportunity to relate theoretical knowledge with real situations. It also helps to improve our analytical skill, communication skill and knowledge. Strategy is the road map (a set of moves or steps) which let retail market to pursue long term position or goal which it has visualized for future. The effort and intelligence in utilizing and developing a strategy determines the success of the Retail market.

ACKNOWLEDGEMENT

Everything that happens is result of many factors and people, some known to us, and some unknown. Through this acknowledgment, we take the opportunity to express sincere gratitude towards people and factors responsible for this learning experience.

A success is sustained by the hands of more than one person directly or indirectly. We are deeply indebted to our Head of the Department , Prof. Dr. Ashvin Dave who modelled us both technically and morally for achieving greater success in life.

As a student, it is our prime responsibility to thank Prof. Devina Upadhyay for her support and guidance. Her support was not only through our conversations and discussions, but also through her personal guidance during the entire project. We also thankful to the entire faculty team of CPIMRmanagement, Ahmedabad for their valuable support.

CONTENTS
SR. NO. A. INTRODUCTION B. C. D. E. Global Overview Challenges and Attraction For Global Retailers Retailing in India Growth and Evaluation of Indian Retail Sector Challenges of Retailing in India Retailing Defined The Retailer within Distribution Channel Retail Industry : Its Contribution To The Economy A Retailers Position In Society FDI Policy With Regard To Indian Retailer Industry Banking Industry Insurance Sector Insurance In India Customer Relationship Management 26 29 31 32 33-41 42-43 44-50 51 19 21 15 16 17 18 12 13 PARTICULARS PG. NO. 7-32 7 8

LITERATURE REVIEW RESEARCH METHODOLOGY QUESTIONNAIRE REFERENCE

INTRODUCTION
A GLOBAL OVERVIEW Retailing is increasingly a global business. A more structured retail industry with more multiple retailers (those with more than one outlet) is a sign that an economy is developing, as organizations specialize and gain economies of scale. Additionally, when disposable incomes rise, retailers play an active part in distributing increasingly discretionary goods to centres of population. Emerging markets are a real (although highly complex) opportunity for experienced retailers, especially if they are faced with high levels of retail provision and therefore competition in their traditional markets. As the artificial barriers to trade, such as import duty and quota restrictions, are removed from the global economy, many retailers will view the world as their marketplace and make sourcing and outlet operation decisions on a set of criteria that are relevant across the globe. Some of the strongest global retailers are, such as Wal-Mart, IKEA, Marks and Spencers, Big Bazaar and some modern age retailers are having considerable success on a global basis, such as Tesco, B&Q, Carrefour etc. However, long distances, political and cultural complexities are huge challenges to retailers, which can only be overcome by the strongest contenders. International retailing activities have often stemmed from retailers seeing opportunities for formats that are underrepresented in new markets, such as the entry by the 'hard discount' supermarket operators (Aldi, Netto, Lidl) into the UK in the early 1990s and Vishal Megamart, Big Bazaar, Shoppers Stop in India in the late 1990s.

Challenges and Attractions for Global Retailers

Challenges:

History has witnessed that the concern of allowing unrestrained FDI flows in the retail sector has never been free from controversies and simultaneously has been an issue for unsuccessful deliberation ever since the advent of FDI in India. Where on one hand there has been a strong outcry for the unrestricted flow of FDI in the retail trading by an overwhelming number of both domestic as well as foreign corporate retail giants; to the contrary, the critics of unrestrained FDI have always fiercely retorted by highlighting the adverse impact, the FDI in the retail trading will have on the unorganized retail trade, which is the source of employment to an enormous amount of the population of India.

The antagonists of FDI in retail sector oppose the same on various grounds, like, that the entry of large global retailers such as Wal-Mart would kill local shops and millions of jobs, since the unorganized retail sector employs an enormous percentage of Indian population after the agriculture sector; secondly that the global retailers would conspire and exercise monopolistic power to raise prices and monopolistic (big buying) power to reduce the prices received by the suppliers; thirdly, it would lead to asymmetrical growth in cities, causing discontent and social tension elsewhere. Hence, both the consumers and the suppliers would lose, while the profit margins of such retail chains would go up.

Many trading associations, political parties and industrial associations have argued against FDI in retailing due to various reasons. It is generally argued that the Indian retailers have yet to consolidate their position. The existing retailing scenario is characterized by the presence of a large number of fragmented family owned businesses, who would not be able to survive the competition from global players. The examples of south East Asian countries show that after allowing FDI, the domestic retailers were marginalised and this led to unemployment. Another apprehension is that FDI in retailing can upset the import balance, as large international retailers may prefer to source majority of their products globally

rather than investing in local products. The global retailers might resort to predatory pricing. Due to their financial clout, they often sell below cost in the new markets. Once the domestic players are wiped out of the market foreign players enjoy a monopoly position which allows them to increase prices and earn profits. Indian retailers have argued that since lending rates are much higher in India, Indian retailers, especially small retailers, are at a disadvantageous position compared to foreign retailers who have access to International funds at lower interest rates. High cost of borrowing forces the domestic players to charge higher prices for the products. Another argument against FDI is that FDI in retail trade would not attract large inflows of foreign investment since very little investment is required to conduct retail business. Goods are bought on credit and sales are made on cash basis. Hence, the working capital requirement is negligible. On the contrary; after making initial investment on basic infrastructure, the multinational retailers may remit the higher amount of profits earned in India to their own country.

ATTRACTIONS

Retailing is being perceived as a beginner and as an attractive commercial business for organized business i.e. the pure retailer is starting to emerge now. Indian organized retail industry is one of the sunrise sectors with huge growth potential. Total retail market in India stood at USD 350 billion in 2007-08 and is estimated to attain USD 573 billion by 2012-13. Organised retail industry accounts for only 5.5% of total retail industry and is expected to reach 10% by 2012 (http://business.rediff.com). AT Kearney, the well known international management consultancy, recently identified India as the second most attractive retail destination globally from among thirty emergent markets. It has made India the cause of a good deal of excitement and the cynosure of many foreign investors eyes. With a contribution of an overwhelming 14% to the national GDP and employing 7% of the total workforce (only agriculture employs more) in the country, the retail industry is definitely one of the pillars of the Indian economy

Foreign companies attraction to India is the billion -plus population. Also, there are huge employment opportunities in retail sector in India. Indias retail industry is the second largest sector, after agriculture, which provides employment. According to Associated
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Chambers of Commerce and Industry of India (ASSOCHAM), the retail sector will create 50,000 jobs in the next few years. As per the US Census Bureau, the young population in India is likely to constitute 53per cent of the total population by 2020 and 46.5 per cent of the population by 2050 much higher than countries like the US, the UK, Germany, China etc. Indias demographic scenario is likely to change favourably, and therefore, will most certainly drive retail sales growth, especially in the organised retail segment. Even though organised retailer shave a far lesser reach in India than in other developed countries, the first-mover advantage of some retail players will contribute to the sectors growth.

India in such a scenario presents some major attractions to foreign retailers. There is a huge, industry with no large players. Some Indian large players have entered just recently like Reliance, Trent. Moreover, India can support significant players averaging $1 bn. in Grocery and $0.3- 0.5 bn. in apparel within next ten years. The transition will open multiple opportunities for companies and investors. In addition to these, improved living standards and continuing economic growth, friendly business environment, growing spending power and increasing number of conscious customers aspiring to own quality and branded products in India are also attracting to global retailers to enter in Indian market.

According to industry experts, organised retail in India is expected to increase from 5 per cent of the total market in 2008 to 14 - 18 per cent of the total retail market and reach US$ 450billion by 2015 (Mckinsey 2008).Furthermore, during 2010-12, around 55 million square feet (sq.ft.) of retail space will be ready in Mumbai, national capital region (NCR), Bangalore, Kolkata, Chennai, Hyderabad and Pune. Besides, between 2010 and 2012, the organised retail real estate stock will grow from the existing 41 million sq.ft. to 95 million sq.ft.

Thus, there is certainly a lucrative opportunity for foreign players to enter the Indian terrain.

Growth rates of the industry both in the past and those expected for the next decade coupled with the changing consumer trends such as increased use of credit cards, brand consciousness, and the growth of population under the age of 35 are factors that encourage
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a foreign player to establish outlets in India (Kalathur 2009). India thus continues to be among the most attractive countries for global retailers. Foreign direct investment (FDI) inflows between April 2000 and April 2010, in single-brand retail trading, stood at US$ 194.69 million, according to the Department of Industrial Policy and Promotion (DIPP). The Indian Council of Research in International Economic Relations (ICRIER), a premier economic think tank of the country, which was appointed to look into the impact of BIG capital in the retail sector, has projected the worth of Indian retail sector to reach $496 billion by 2011-12 and ICRIER has also come to conclusion that investment of big money in the retail sector would in the long run not harm interests of small, traditional, retailers. A number of global retail giants are thus eyeing this opportunity to swarm this seemingly nascent sector and exploit its unexplored potential.

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Retailing in India Retailing in India is one of the pillars of its economy and accounts for 14 to 15% of its GDP.[1][2] The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people. India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4% of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population).

Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India's central government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple.

The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian government placed the retail reforms on hold till it reaches a consensus. In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership, but imposed the requirement that the single brand retailer source 30% of its goods from India. Indian government continues the hold on retail reforms for multi-brand stores. IKEA announced in January that it is putting on hold its plan to open stores in India because of the 30% requirement.[8] Fitch believes that the 30% requirement is likely to significantly delay if not prevent most single brand majors from Europe, USA and Japan from opening stores and creating associated jobs in India.

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Growth and Evolution of Indian Retail Sector The Indian Retail Industry is the 5th largest retail destination and the second most attractive market for investment in the globe after Vietnam as reported by AT Kearneys seventh annual Globe Retail Development Index (GRDI), in 2008. The growing popularity of Indian Retail sector has resulted in growing awareness of quality products and brands. As a whole Indian retail has made life convenient, easy, quick and affordable. Indian retail sector specially organized retail is growing rapidly, with customer spending growing in unprecedented manner. It is undergoing metamorphosis. Till 1980 retail continued in the form of kiranas that is unorganized retailing. Later in 1990s branded retail outlet like Food World, Nilgiris and local retail outlets like Apna Bazaar came into existence. Now big players like Reliance, Tatas, Bharti, ITC and other reputed companies have entered into organized retail business.

The multinationals with 51% opening of FDI in single brand retail has led to direct entrance of companies like Nike, Reebok, Metro etc. or through joint ventures like Wal-mart with Bharti, Tata with Tesco etc.

Evolution of retail sector

Evolution of retail sector can be seen in the share of organized sector in 2007 was 7.5% of the total retail market. Organized retail business in India is very small but has tremendous scope. The total in 2005 stood at $225 billion, accounting for about 11% of GDP. In this total market, the organized retail accounts for only $8 billion of total revenue. According to A T Kearney, the organized retailing is expected to be more than $23 billion revenue by 2010. The retail industry in India is currently growing at a great pace and is expected to go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion by the year2018 at a CAGR of 10%. As the country has got a high growth rate, the consumer spending has also gone up and is also expected to go up further in the future. In the last four years, the consumer spending in India climbed up to 75%. As a result, the Indian retail industry is expected to grow further in the future days. By the year 2013, the organized
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sector is also expected to grow at a CAGR of 40%. The key factors that drive growth in retail industry are young demographic profile, increasing consumer aspirations, growing middle class incomes and improving demand from rural markets. Also, rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes. Liberalization of the Indian economy, increase in spending per capita income and the advent of dual income families also help in the growth of retail sector.

Moreover, consumer preference for shopping in new environs, availability of quality real estate and mall management practices and a shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc. also contributes to the spiral of growth in this sector. Furthermore, the Internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains.

One report estimates the 2011 Indian retail market as generating sales of about $470 billion a year, of which a miniscule $27 billion comes from organized retail such as supermarkets, chain stores with centralized operations and shops in malls. The opening of retail industry to free market competition, some claim will enable rapid growth in retail sector of Indian economy. Others believe the growth of Indian retail industry will take time, with organized retail possibly needing a decade to grow to a 25% share. A 25% market share, given the expected growth of Indian retail industry through 2021, is estimated to be over $250 billion a year: a revenue equal to the 2009 revenue share from Japan for the world's 250 largest retailers. The Economist forecasts that Indian retail will nearly double in economic value, expanding by about $400 billion by 2020.[20] The projected increase alone is equivalent to the current retail market size of France. In 2011, food accounted for 70% of Indian retail, but was under-represented by organized retail. A.T. Kearney estimates India's organized retail had a 31% share in clothing and apparel, while the home supplies retail was growing between 20% to 30% per year. These data correspond to retail prospects prior to November announcement of the retail reform.

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Challenges of Retailing in India

In India the retailing industry has a long way to go and to become a truly flourishing industry, retailing needs to cross various hurdles. The first challenge facing the organized retail sector is the competition from unorganized sector. Needless to say, the Indian retail sector is overwhelmingly swarmed by the unorganized retailing with the dominance of small and medium enterprises in contradiction to the presence of few giant corporate retailing outlets.

The trading sector is also highly fragmented, with a large number of intermediaries who operate at a strictly local level and there is no barrier to entry, given the structure and scale of these operations (Singhal 1999).The tax structure in India favors small retail business. Organized retail sector has to pay huge taxes, which is negligible for small retail business. Thus, the cost of business operations is very high in India. Developed supply chain and integrated IT management is absent in retail sector. This lack of adequate infrastructure facilities, lack of trained work force and low skill level for retailing management further makes the sector quite complex. Also, the intrinsic complexity of retailing- rapid price changes, threat of product obsolescence, low margins, high cost of real estate and dissimilarity in consumer groups are the other challenges that the retail sector in India is facing.

The status of the retail industry will depend mostly on external factors like Government regulations and policies and real estate prices, besides the activities of retailers and demands of the customers also show impact on retail industry. Even though economy across the globe is slowly emerging from recession, tough times lie ahead for the retail industry as consumer spending still has not seen a consistent increase. In fact, consumer spending could contract further as banks have been overcautious in lending. Thus, retailers are witnessing an uphill task in terms of wooing consumers, despite offering big discounts. Additionally, organised retailers have been facing a difficult time in attracting customers from traditional kirana stores, especially in the food and grocery segment.

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RETAILING DEFINED

The word retailing has its origins in the French verb retailer, which means to cut up, and refers to one of the fundamental retailing activities which is to buy in larger quantities and sell in smaller quantities. For example, a convenience store would buy tins of beans in units of two dozen boxes, but sell in single-tin units. However, a retailer is not the only type of business entity to 'break bulk'. Wholesalers also buy in larger quantities and sell to their customers in smaller quantities. It is the type of customer, rather than the activity, that distinguishes a retailer from other distributive traders; the distinction being that a retailer sells to final consumers, unlike a wholesaler who sells to a retailer or other business organizations. A generally accepted definition of a retailer is 'any establishment engaged in selling merchandise for personal or household consumption and rendering services incidental to the sale of such goods'. There are, however, many businesses that carry out retailing activity that are not in themselves classified as retailers. For example, a factory may engage in retailing activity by selling 'seconds' quality goods in the shop attached to its manufacturing premises. In the UK, a retailer is only classified as such for government reporting if the business gains over half of its income from selling to the final consumer.

The term retailing applies not only to the selling of tangible products like loaves of bread or pairs of shoes, but also to the selling of service products. Companies who provide meals, haircuts and aromatherapy sessions are all essentially retailers, as they sell to the final consumer, and yet customers do not take goods away from these retailers in a carrier bag. The consumption of the service offering coincides with the retailing activity itself.

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THE RETAILER WITHIN THE DISTRIBUTION CHANNEL From a traditional marketing viewpoint, the retailer is one of many possible organizations through which goods produced by the manufacturer flow on their way to their consumer destiny. These organizations perform various roles by being a member of a distribution channel. For example, a chocolate producer like Cadbury's will use a number of distribution channels for its confectionery, which involves members such as agents, wholesalers, supermarkets, convenience stores, petrol stations, vending machine operators and so on. Channel members, or marketing intermediaries as they are sometimes referred to, take on activities that a manufacturer does not have the resources to perform, such as displaying the product alongside related or alternative items in a location that is convenient for a consumer to access during shopping Intermediaries facilitate the distribution process by providing points where deliveries of merchandise are altered in their physical state (such as being broken down into smaller quantities, or being repackaged) and are made available to customers in convenient or cost-effective locations. Over time, and particularly since the laws that allowed manufacturers to set prices were abolished, retailers have become more dominant in the distribution channel. Their passive distributor status has been transformed into a more aggressive one, using price as a competitive weapon, introducing ranges of own-branded goods (private labels) and developing shopping environments that engender loyalty to an outlet rather than loyalty to a product. This shift in power from the manufacturer to the retailer has been further enhanced by information technology that has enabled retailers to gain a greater understanding of their customers' purchasing patterns and preferences. Today, retailers place a lot of emphasis on customer service which is defined as the sum of acts and elements that allow consumer s to receive what they need or desire from your retail establishment.

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THE RETAIL INDUSTRY ITS CONTRIBUTION TO THE ECONOMY Moving away from the role of retailing in the marketing activity of an individual producer, retailing activity can also be viewed as a significant contributor to the economy in general. In the last two decades of the twentieth century, the UK and many other developed nations have seen their economies change from being manufacturing-led to being service-led, in terms of wealth creation, employment and investment. Around one-third of consumer expenditure takes place through retail outlets, and the retail industry employs one in nine workers. The retail price index is a frequently referred to economic indicator. It is a measure that is based on a 'basket' of products across all retail sectors and compares prices over time in order to reveal the changes in the cost to households of typical purchase needs. According to ICRIER report, the retail business in India is estimated to grow at 13% from $322 billion to $590 billion by 2011-12. In the same time the unorganized retail sector is expected to grow at about 10% per annum with sales turnover rise from $309 billion in 2006-07 to $496 billion in 2011-12. Retailing is one of the pillars of economy in India and accounts for 35% of the GDP.

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A RETAILER'S POSITION IN SOCIETY As well as making a significant contribution to the economy, the retailer has always had a very important place in our personal and social life. From a very early age we are introduced to shopping environments, and they become familiar and comfortable places in which to spend time. As we get older we use shops as reference points when learning about the world and its opportunities. We see some shops as places we like to be and others as places we 'wouldn't be seen dead in', whilst others might be intimidating or places that we aspire to shop in one day. Retailers therefore play an important part in our own development and the way we formulate ideas about ourselves. It is largely believed that shops have five distinctive roles in addition to the earlier identified function as breaker of bulk:

Advertising and promotion. Shops introduce us to new products and remind us of old ones. Without shops, we would have to rely on other, often less suitable, media to discover what is on offer.

Shops provide advice and guidance. Many shop staff are experts in their products and routinely provide relatively unbiased advice and guidance on what best meets each consumer's specific requirements.

Shops negotiate and form contracts. Shops take the risk in what they sell, and in what they may value for part-exchange, thereby relieving those further back in the supply chain of many problems of quality, suitability, valuation and legality. For example, the shopkeeper decides whether the alcohol purchaser is over 18 or not.

Shops take or arrange for payment and accept risk of default. Someone has to arrange for the secure transfer of funds, including funding any bridging period, and to judge which payment instrument provides the appropriate certainty of completion.

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 Shops handle warranty claims and after-sales facilities. Shops provide the local points of responsibility when anything goes wrong and an entry point into repair and maintenance functions.

Retailers also provide an arena for us to carry out social activities. We may go shopping with a group of friends for clothes, or with a partner for home furnishings, or with the family for a day out combined with a visit to the cinema. Alternatively we may go shopping alone, in the hope that we can talk to a product expert about a specialist purchase that we are interested in making. Commercially viable small shops have traditionally provided goods and services to local consumers, provided an outlet for local produce, provided local job opportunities and acted as the central hub of a community. In the future, they may need to develop their businesses to fulfil the needs of a 'modern society' by providing services such as prepared food and drinks, web ordering and delivery, social information provision and internet access. Many retailers state that an important aspect of their business is that of contributing to society. Tesco, for example, may feel that by bringing high quality and a huge diversity of products from around the globe, in a clean and standardized shopping environment, they are making a valuable contribution to society and, many consumers clearly agree. However, Farmer's Markets offer customers a different set of values. Retailers also make contributions to society in other ways. For example, Body Shop were leaders in the field when it came to what many women would feel to be 'enlightened' yet environmentally conscious and B&Q have led the way in providing work to older employees.

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FDI Policy with Regard to Retailing in India

It will be prudent to look into Press Note 4 of 2006 issued by DIPP and consolidated FDI Policy issued in October 2010[11] which provide the sector specific guidelines for FDI with regard to the conduct of trading activities.

a) FDI up to 100% for cash and carry wholesale trading and export trading allowed under the automatic route. b) FDI up to 51 % with prior Government approval (i.e. FIPB) for retail trade of Single Brand products. c) FDI is not permitted in Multi Brand Retailing in India.

Prospected Changes in FDI Policy for Retail Sector in India

The government (led by Dr.Manmohan Singh, announced following prospective reforms in Indian Retail Sector

1. India will allow FDI of up to 51% in multi-brand sector. 2. Single brand retailers such as Apple and Ikea, can own 100% of their Indian stores, up from previous cap of 51%. 3. The retailers (both single and multi-brand) will have to source at least 30% of their goods from small and medium sized Indian suppliers. 4. All retail stores can open up their operations in population having over 1million.Out of approximately 7935 towns and cities in India, 55 suffice such criteria. 5. Multi-brand retailers must bring minimum investment of US$ 100 million. Half of this must be invested in back-end infrastructure facilities such as cold chains, refrigeration, transportation, packaging etc. to reduce post-harvest losses and provide remunerative prices to farmers. 6. The opening of retail competition (policy) will be within parameters of state laws and regulations
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Division of Retail Industry Organised and Unorganised Retailing The retail industry is mainly divided into: - 1) Organised and 2) Unorganised Retailing

Organised 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.

Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

The Indian retail sector is highly fragmented with 97 per cent of its business being run by the unorganized retailers. The organized retail however is at a very nascent stage. The sector is the largest source of employment after agriculture, and has deep penetration into rural India generating more than 10 per cent of Indias GDP.

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FDI encouraging policy can remove the present limitations in Indian system such as

1. Infrastructure

There has been a lack of investment in the logistics of the retail chain, leading to an inefficient market mechanism. Though India is the second largest producer of fruits and vegetables (about 180 million MT), it has a very limited integrated cold-chain infrastructure, with only 5386 stand-alone cold storages, having a total capacity of 23.6 million MT. , 80% of this is used only for potatoes. The chain is highly fragmented and hence, perishable horticultural commodities find it difficult to link to distant markets, including overseas markets, round the year. Storage infrastructure is necessary for carrying over the agricultural produce from production periods to the rest of the year and to prevent distress sales. Lack of adequate storage facilities cause heavy losses to farmers in terms of wastage in quality and quantity of produce in general. Though FDI is permitted in cold-chain to the extent of 100%, through the automatic route, in the absence of FDI in retailing; FDI flow to the sector has not been significant.

2. Intermediaries dominate the value chain

Intermediaries often flout mandi norms and their pricing lacks transparency. Wholesale regulated markets, governed by State APMC Acts, have developed a monopolistic and nontransparent character. According to some reports, Indian farmers realize only 1/3rd of the total price paid by the final consumer, as against 2/3rd by farmers in nations with a higher share of organized retail.

3. Improper Public Distribution System (PDS)

There is a big question mark on the efficacy of the public procurement and PDS setup and the bill on food subsidies is rising. In spite of such heavy subsidies, overall food based inflation has been a matter of great concern. The absence of a farm-tofork retail supply

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system has led to the ultimate customers paying a premium for shortages and a charge for wastages.

4. No Global Reach

The Micro Small & Medium Enterprises (MSME) sector has also suffered due to lack of branding and lack of avenues to reach out to the vast world markets. While India has continued to provide emphasis on the development of MSME sector, the share of unorganised sector in overall manufacturing has declined from 34.5% in1999-2000 to 30.3% in 2007-08. This has largely been due to the inability of this sector to access latest technology and improve its marketing interface.

Thus the rationale behind allowing FDI in Indian retail sector comes from the fact, that it will act as a powerful catalyst to spur competition in retail industry, due to current scenario of above listed limitations, low completion and poor productivity. Permitting foreign investment in food-based retailing is likely to ensure adequate flow of capital into the country & its productive use, in a manner likely to promote the welfare of all sections of society, particularly farmers and consumers. It would also help bring about improvements in farmer income & agricultural growth and assist in lowering consumer prices inflation. Apart from this, by allowing FDI in retail trade, India will significantly flourish in terms of quality standards and consumer expectations, since the inflow of FDI in retail sector is bound to pull up the quality standards and cost-competitiveness of Indian producers in all the segments. It is therefore obvious that we should not only permit but encourage FDI in retail trade. Lastly, it is to be noted that the Indian Council of Research in International Economic Relations (ICRIER), a premier economic think tank of the country, which was appointed to look into the impact of BIG capital in the retail sector, has projected the worth of Indian retail sector to reach $496 billion by 2011-12 and ICRIER has also come to conclusion that investment of big money (large corporate and FDI) in the retail sector would in the long run not harm interests of small, traditional, retailers. In light of the above, it can be safely concluded that allowing healthy FDI in the retail sector would not only lead to a substantial surge in the countrys GDP and overall economic development, but would inter alia also help in integrating the Indian retail market with that of the global retail market in addition
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to providing not just employment but a better paying employment, which the unorganized sector (kirana and other small time retailing shops) have undoubtedly failed to provide to the masses employed in them. Industrial organisations such as CII, FICCI, US-India Business Council (USIBC), the American Chamber of Commerce in India, The Retail Association of India (RAI) and Shopping Centers Association of India (a 44 member association of Indian multibrand retailers and shopping malls) favour a phased approach toward liberalising FDI in multi-brand retailing, and most of them agree with considering a cap of 49-51 per cent to start with.

The international retail players such as Walmart, Carrefour, Metro, IKEA, and TESCO share the same view and insist on a clear path towards 100 per cent opening up in near future. Large multinational retailers such as US-based Walmart, Germanys Metro AG and Woolworths Ltd, the largest Australian retailer that operates in wholesale cash-and-carry ventures in India, have been demanding liberalisation of FDI rules on multi-brand retail for some time.

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Banking in India
Indian banking is the lifeline of the nation and its people. Banking has helped in developing the vital sectors of the economy and usher in a new dawn of progress on the Indian horizon. The sector has translated the hopes and aspirations of millions of people into reality. But to do so, it has had to control miles and miles of difficult terrain, suffer the indignities of foreign rule and the pangs of partition. Today, Indian banks can confidently compete with modern banks of the world.

Before the 20th century, usury, or lending money at a high rate of interest, was widely prevalent in rural India. Entry of Joint stock banks and development of Cooperative movement have taken over a good deal of business from the hands of the Indian money lender, who although still exist, have lost his menacing teeth. In the Indian Banking System, Cooperative banks exist side by side with commercial banks and play a supplementary role in providing need-based finance, especially for agricultural and agriculture-based operations including farming, cattle, milk, hatchery, personal finance etc. along with some small industries and self-employment driven activities. Generally, co-operative banks are governed by the respective co-operative acts of state governments. But, since banks began to be regulated by the RBI after 1st March 1966, these banks are also regulated by the RBI after amendment to the Banking Regulation Act 1949. The Reserve Bank is responsible for licensing of banks and branches, and it also regulates credit limits to state co-operative banks on behalf of primary co-operative banks for financing SSI units.

Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. After this, the Indian government established three presidency banks in India. The first of three was the Bank of Bengal, which obtains charter in 1809, the other two presidency bank, viz., the Bank of Bombay and the Bank of Madras, were established in 1840 and 1843, respectively. The three presidency banks were subsequently amalgamated into the Imperial Bank of India (IBI) under the Imperial Bank of India Act, 1920

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which is now known as the State Bank of India. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the Reserve Bank was nationalized and given broader powers. As the banking institutions expand and become increasingly complex under the impact of deregulation, innovation and technological upgradation, it is crucial to maintain balance between efficiency and stability. During the last 30 years since nationalization tremendous changes have taken place in the financial markets as well as in the banking industry due to financial sector reforms. The banks have shed their traditional functions and have been innovating, improving and coming out with new types of services to cater emerging needs of their customers. Banks have been given greater freedom to frame their own policies. Rapid advancement of technology has contributed to significant reduction in transaction costs, facilitated greater diversification of portfolio and improvements in credit delivery of banks. Prudential norms, in line with international standards, have been put in place for promoting and enhancing the efficiency of banks. The process of institution building has been strengthened with several measures in the areas of debt recovery, asset reconstruction and securitization, consolidation, convergence, mass banking etc. Despite this commendable progress, serious problem have emerged reflecting in a decline in productivity and efficiency, and erosion of the profitability of the banking sector. There has been deterioration in the quality of loan portfolio which, in turn, has come in the way of banks income generation and enchancement of their capital funds. Inadequacy of capital has been accompanied by inadequacy of loan loss provisions resulting into the adverse impact on the depositors and investors confidence. The Government, therefore, set up Narasimham Committee to look into the problems and recommend measures to improve the health of the financial system.
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The acceptance of the Narasimham Committee recommendations by the Government has resulted in transformation of hitherto highly regimented and overbureaucratized banking system into market driven and extremely competitive one. The massive and speedy expansion and diversification of banking has not been without its strains. The banking industry is entering a new phase in which it will be facing increasing competition from nonbanks not only in the domestic market but in the international markets also. The operational structure of banking in India is expected to undergo a profound change during the next decade. With the emergence of new private banks, the private bank sector has become enriched and diversified with focus spread to the wholesale as well as retail banking. The existing banks have wide branch network and geographic spread, whereas the new private banks have the clout of massive capital, lean personnel component, the expertise in developing sophisticated financial products and use of state-of-the-art technology. Gradual deregulation that is being ushered in while stimulating the competition would also facilitate forging mutually beneficial relationships, which would ultimately enhance the quality and content of banking. In the final phase, the banking system in India will give a good account of itself only with the combined efforts of cooperative banks, regional rural banks and development banking institutions which are expected to provide an adequate number of effective retail outlets to meet the emerging socio-economic challenges during the next two decades. The electronic age has also affected the banking system, leading to very fast electronic fund transfer. However, the development of electronic banking has also led to new areas of risk such as data security and integrity requiring new techniques of risk management. Cooperative (mutual) banks are an important part of many financial systems. In a number of countries, they are among the largest financial institutions when considered as a group. Moreover, the share of cooperative banks has been increasing in recent years; in the sample of banks in advanced economies and emerging markets analyzed in this paper, the market share of cooperative banks in terms of total banking sector assets increased from about 9 percent in mid- 1990s to about 14 percent in 2004.

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Insurance Sector

Insurance is the backbone of a countrys risk management system. Risk is an inherent part of our lives. The insurance providers offer a variety of products to businesses and individuals in order to provide protection from risk and to ensure financial security. They are also an important component in the financial intermediation chain of a country and are a source of longterm capital for infrastructure and long-term projects. Through their participation in financial markets, they also provide support in stabilizing the markets by evening out any fluctuations. The insurance business is broadly divided into life, health, and non-life insurance. Individuals, families, and businesses face risks of premature death, depletion in income because of retirement, health risks, loss of property, risk of legal liability, etc. The insurance companies offer life insurance, pension and retirement income, property insurance, legal liability insurance, etc., to cover these risks. In addition, they offer several specialized products to meet the specific needs and requirements of businesses and individuals. Businesses also depend on these companies for various property and liability covers, employee compensation, and marine insurance.

Insurance does influence the growth and development of an economy in several ways. The availability of insurance can mitigate the impacts of risk by providing products which help organizations and individuals to minimize the consequences of risk and has a positive effect on industry growth as entrepreneurs are able to cover their risks. In the absence of a full range of insurance products and/or deficient products in terms of coverage and scope, the risk-taking abilities would be hampered and chances are that the economic activities would turn out to be high-risk activities. The implications of leaving various risks uncovered can be significant and the impact of losses can be devastating creating a huge burden on the governments. Therefore, a strong and competitive insurance industry is considered imperative for economic development and growth. However, the contribution of the insurance companies is also dependent on the fact that they are able to pool risks effectively. Only then would it be possible to cover these risks at an affordable and reasonable cost as the insurance provider will be able to spread the risks throughout the
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economy. The insurance industry is also an integral part of the financial system. For effective functioning of the financial system, it is important that the markets are efficient by ensuring liquidity and transparency in price discovery. The role of the insurance companies as financial intermediaries is also considered significant in making these markets efficient by providing liquidity and credit. This, in turn, helps in lowering down the cost of capital and providing risk-free opportunities to all participants in the market. Penetration of insurance critically depends on the availability of insurance products and services. Huge untapped market, proliferation of schemes, new product innovations, perception of insurable risks of Indian consumers, competitive pressures arising from integration of bank and insurance, impact of information technology, and the role of insurance industry in financial services industry are some of the forces which shape the competitive structure of the insurance industry.

The insurance companies have a pivotal role in offering insurance products which meet the requirements and expectations of the customers and, at the same time, are affordable. The future growth of this sector will depend on how effectively the insurers are able to come up with product designs suitable to our context and how effectively they are able to change the perceptions of the Indian consumers and make them aware of the insurable

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Insurance in India
Insurance sector in India is one of the booming sectors of the economy and is growing at the rate of 15-20 per cent per annum. Together with banking services, it contributes to about 7 per cent to the country's GDP. Insurance sector in India was liberalized in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill. This lifted entry restrictions for private players and allowed foreign players to enter the market with some limits on direct foreign ownership. There is a 26 percent equity cap for foreign partners in an insurance company and a proposal to increase this limit to 49 percent. The opening up of the insurance sector has led to rapid growth of the sector. The potential for growth of insurance industry in India is immense as nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be well below international standards.

The insurance sector in India has come up with a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. The US$ 41 billion Indian life insurance industry is considered the fifth largest life insurance market, and growing at a rapid pace of 32-34 per cent annually.

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CUSTOMER RELATIONSHIP MANAGEMENT

Under the conditions of market economy, every advantage, based on product, price, place and promotion are not lasting and quickly loses its significance1. In such a situation the customers relationship management (CRM) replaces the traditional marketing model and introduces the relation with the client as the most important factor for the stability of the trade business. Therefore, it will be extremely difficult, even impossible, to manage the clients; but it is completely right to suggest that it is possible to manage the relations with the customers, hence the desired effects from the trade activity and the improvement of the trade indicators. This requires clarifications of the most important theoretical issues and the issues related to practice and application, in view of the customers relationship management, as every business that neglects the customers fails. From this standpoint we should perceive CRM as a systematic approach, which is manifested as a customers management process in all points of contact, in order to increase the value of the relationships Two3 main factors exist for the growing popularity of CRM: on one side, the fact, that the attraction and the keeping of the client is a main management priority, on the other side, the growing significance of the electronic technologies and Internet for the customer care and as a sale channel, creating a considerable insecurity for the companies. Although there is variety of existing notions for CRM, one should always proceed from the understanding that no universal solutions exist, and that CRM is not the panacea4, which will solve all problems of business.

The CRM technology is an instrument of the intelligent company management in the filed of customers relationship, taking into consideration the personal preferences and characteristics. This approach emphasizes the possibility to evaluate the separate clients according to their significance for business by realized sales, profitability and development potential.

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Literature Review
Ai Mier (April, 2007)

confined that most commercial banks do not consider themselves as an agent providing service to customers where customers are clients who deserve to be served. It starts at the counter. Many people experience an average waiting time of more than an hour and this wait goes on whilst staff behind the counter proceed with their work at a slow pace and laughing and joking at the same time.. The bank is dealing with tens of thousands of customers at the counter every day; therefore the customer relationship management foundation should start from that point. That being said, to make the customer feel at home is a goal that is easier to talk about than actually execute. Next, lets review the status of the customer service center in a bank. To be honest, generally the telephone service is much better than counter service. Many commercial banks have installed national, uniform and advanced devices. Thirdly, how should a bank orientate the value-added services? This question stems from the 24-hour selfservices ATM machines that we can find in every street. Most banks have set up their own ATM networks. However, most people are concerned about whether they can withdraw or deposit the money they earned laboriously promptly at any place or any time. The success of CRM starts when the bank can meet the basic needs of its customers through more conveniently located ATMs and extended counter banking hours (e.g. after the normal work day or on public holidays). Fourthly, the orientation of additional services provided by the bank. Hence, bill payments services should be a starting point for the bank to mine for / collect personal information, it can use this to establish a formidable database.. In a sense, the areas a bank should pay attention to are close to any customers heart.

Bernardo Btiz-Lazo, (2010)

Stipulates the supporting the critical view of the service quality Revista Empresarial Inter Metro / Inter Metro Business Journal framework and therefore, contributing to the discussion challenging a central tenant in the literature discussing marketing of financial services, relationship banking and TQM programmes in financial organisations. In particular,
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research documented evidence to support the view that financial service organisations and banks in particular, place greater emphasis on profit related goals (i.e. supplied oriented) than growth driven by the satisfaction of customer needs (i.e. customer-oriented approach). This may be due to historical reasons. Egan and Shipley (1995) state that the history of banking has been that customers approach to banks (not vice versa). The discussion also included competitive and corporate strategy implications of survey results. Interviewees were asked to elaborate about the relation between shareholder value and customer value creation. Moreover, managers of banks were considered able to identify their organisations core capabilities if managers recognised how a bank's value added rises or falls when the organisation provides a changing bundle of services to their customers. In all instances survey participants agreed there was a one to one relationship between shareholder value and customer value. Everyone agreed that banks exist only when creating customer value but they could seldom elaborate further from a notion that described customers maintaining patronage of the bank. Failing to identify how customer value is created reflected an inability to identify true drivers of performance at practical levels. Moreover, the inability to identify banks' current or future drivers of performance together with low strategic priority for customer value creation further suggested that any potential competitor whose strategy implements customer value concepts is likely to secure entry to bank markets. Survey results would also suggest that diversification has resulted in changing business focus. This as, on balance, diversification in bank markets has emphasised shift away from customer cultivation and emphasised fee-income generation. The nature of competition in the financial services market might play a significant role in such behaviour. Although the European banking has experienced continual transformation, the competition is still limited across European countries (De Guevara et al., 2005). Survey results suggest diversification strategies of commercial banks are characterised by the pre-eminence of greater income growth and cost containment as drivers of diversification Revista Empresarial Inter Metro / Inter Metro Business Journal decisions. Results also suggested that, on balance, managerial strategic intent in commercial bank markets builds upon supply oriented growth rather than growth driven by the satisfaction of customer needs (i.e. customer -oriented approach). To the extent that managers of banks seem unable to understand what customer value creation is, banks may well be pursuing diversification on the basis of traditional ways
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of operating and taken for granted assumptions rooted in experience. At the same time, there is little evidence to suggest that overcoming features of labour markets is a priority. Since managers of banks seem to be happy to implement strategic intent based on the current set of resources, skills and organisational capabilities, it is likely that managers of banks have failed to address the most basic question of what is their value to customers?

Crosby, (1984)

Hypothesized and found evidence that salesperson diligence, information communication, and inducements directly affect buyer satisfaction with the salesperson and indirectly affect trust through satisfaction. Empathy and sportsmanship had a significant, direct effect on buyer trust in the salesperson. Notably, sportsmanship also had a direct effect on satisfaction, which indicates that the buyer may perceive sportsmanship behaviors as both transient and enduring. Inducements directly affected not only satisfaction but also share of customer. This could be a function of the pharmaceutical environment, in which doctors are accustomed to salespeople catering lunches and doing special favors for them. However, there are many other industries (e.g., oil and gas, consumer packaged goods, some services) in which such inducements are customary. Surprisingly, satisfaction does not affect share of customer directly. Cowley and Springen, (1996) This research provides a base for additional research on several fronts. Many of these have been suggested throughout the General Discussion sections, and others are discussed here. One unexplored area is the effect of attractiveness on an attractiveness- related product. All of the existing personal selling research, including our study, has focused on an attractiveness-unrelated product. Perhaps an even greater effect will be demonstrated in attractivenessrelated settings. This study examined four potential mediators of the attractiveness effect. There are other potential mediators that this study was not able to address. Future research might examine the quality of sales visits of more versus less attractive salespeople.

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Eckenrode (Sep 2005)

affirmed that the capability to integrate two or more delivery channels through shared technology has only recently been deployed in any significant way. Today, a handful of retail banks can boast of globally integrated delivery channels that are built on standard technology principles. These channels can, for example, deliver consistent balances regardless of the customers location because of the consistent architecture. IT managers within the bank, as well as business managers that rely on the delivery channels to service their products, know deep down that integrating the channels is the right thing to do because some benefits of channel integration are intuitive if not scientifically provable. The example of inconsistent account balance information is one that integrated delivery channels can solve and that most bankers agree is a source of frustration for the customer. Quantifying the effects of fixing this problem proves to be tricky.

Frederick Reichheld (Resources, 1999)

According to him if the average company were to boost its rate of customer retention in life or auto insurance, for example, by just 5 per cent, it would realize an increase in customer profitability of more than 80 per cent in that line. This phenomenon is shifting the attention away from attracting new realized that as important as winning new customers, is retaining profitable customers. According to one expert, one should insurance life not just once, but every time one feels there is a change in his life profile.

Joshua & Moli (Sep 2005)

They evaluated that recognition of Service Quality, as a competitive weapon is relatively a recent phenomenon in the Indian Banking Sector. Prior to the liberalization era the banking
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sector in India was operating in a protected environment & was dominated by nationalized banks. Banks at that time did not feel the need to pay attention to the service quality issues & they assigned very low priority to identification & satisfaction of customer needs. After liberalization, the nationalized banks & the old generation private banks started facing competition from the new private & foreign banks that had international banking standards. These new generation banks were characterized by the usage of modern information technology endorsed services like ATM, tele-banking, online systems, etc. J. U. Ahmed (2011)

The study revealed that the factors affecting the customer's satisfaction level in the districts under study are grouped in routine operation factor, price factor, environmental factor, management factor, technological factor, interactive factor and service factor. It is observed that the SBIs are yet to make full efforts to improve the environmental factors like decor of banks, sitting facilities etc. The management and technology factor attributed comparatively lower satisfaction than routine operations as well as price factor. The technology upgradation, innovativeness of new services etc is essential in the present global competition but banks in the districts have rarely stepped in this respect. This is due to the management factor viz, dismal service quality, inadequate knowledge of employee regarding bank services and locational inconveniences. The communication gap is one of the root causes of all ills of the banking services. The factor wise average score revealed that none of the variables ranked 4.00 and above which indicates that the customers of SBI are dissatisfaction with the working of the bank. Thus, condition of banks in regard to the service rendered is quite dismal. Even the routine operations factors indicating daily procedural processes like depositing and withdrawing money, the banks fail to serve the customers fully. The factor wise average scores in respect of management factors, technology factor and interactive factors are concerned, reveal that the customers are turned to be dissatisfied lot. Hence an urgent step is warranted to improve the quality standards. The customer's orientations towards innovative services of banks observed that the most of the services offered by SBI have remained unutilized due to the problems inherent to it. The banks in the area under study have to improve a lot for innovative services particularly for satisfaction of ATM users. There is need to adopt certain specific
37

marketing strategies in order to survive in the present globalized environment and in the present world of competition.

Olowokudejo F. F.* and Adeleke I. A. (2011)

Findings show that there is a positive relationship between the variables of the study. This agrees with the findings of Oyeniyi and Abiodun (2008), Zineldin (2006), Schwepker (2003) and Varki and Colgate (2001) that a successful implementation of customer focused services leads to customer satisfaction. The study also examined if organizational characteristics (companies image and branch network) affect the relationship between customer focused services and customer satisfaction and it was found out that organizational characteristics affect the relationship. Though it may not be conspicuous, the insurance industry adopts the use of customer focused services as a tool to enhance customer satisfaction in their organization but in spite of this, the industry has not achieved a high level of customer satisfaction. This is probably because of the peculiar nature of insurance business and other factors in the external business environment of the Nigerian insurance industry. Both companies image and branch network intervene in the relationship between customer focused services and customer satisfaction, though branch network can be said to

intervene more than companies image. This means that customers are more satisfied when they do not have to travel any considerable distance before making transactions; in other words they like to have branches located near them.

P. Pascal (1998)

Found out in his study that satisfaction seems to be the most important factor influencing customer loyalty with banks. The results also show that there is a positive relationship between satisfaction and loyalty that means increase or decrease in level of satisfaction influence loyalty towards the bank. Those who are satisfied with the bank they also intend to continue with the bank. Moreover, the results also show that overall satisfaction with the bank has a significant relationship with recommending the bank to other people. Furthermore, this study also reveals that the level of satisfaction depends largely on service quality. Service quality is crucial for customer satisfaction. According to the findings service
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quality has been found as an important factor towards satisfaction. Moreover, the study also reveals that individual indicator of quality dimensions has great impact on satisfaction. It can be noted from the findings that safety and security in transaction has been found (86% considered it as an important service quality aspect) important from respondents viewpoint and it has also a positive effect on satisfaction. Along with this, responsiveness also has great impact on satisfaction. The study also reveals that high service quality implies high satisfaction and vice versa.

Shapiro and Varian (1999)

Emphasized that customer value as comprised of the customers assessment of expected net benefits from continuing as a customer of the incumbent plus the cost of switching to another supplier. Neither factor is measured by traditional accounting systems, and both factors require data about individual customers perceptions. The Net Ratings and Interactive data source provides standardized measures of customer satisfaction and purchase data that allows construction of a measure related to switching cost. Moreover they found out that both customer attitudes and switching cost proxy are positively associated with future customer behaviors and profitability, thus adding support for the Shapiro and Varian (1999) conjecture and suggesting that the factors reflect an important leading indicator of a firms economic performance. The results imply that such measures may be useful to both segment-level and corporate management, those charged with governance and employment contract design, as well as investors.

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Smriti Srivastava (2012)

Revealed the facts : There exists a relationship between the customer profiling as well as the marketing strategies formulated by the retailers in the shopping mall. There is also a significant relationship between the market placement and marketing strategies. It is also proved that significant relationship exist between the competitors analysis and the marketing strategies followed by them. Marketing strategies inside the mall premises is affected by the mall branding. Promotional offers have its impact on marketing strategies. Loyalty programmes and the tie ups with other different brands is a part of marketing strategies adopted by retailers and the former have a significant impact on the later.

Wen-hai Chih, Ci-Rong Li (2003)

Consistent with the affect theory of social exchanges, in this study we found that job satisfaction and job involvement can positively enhance customer-oriented behaviour of customer-contact employee; job stress can negatively affect customer-oriented behavior. We also found evidence supporting an adaptive mechanism to explain why some customer contact employees may react more favorable customer-oriented behavior than others. That is, emotional intelligence was a significant moderator of the relationship between job stress and customer-oriented behavior. As the emotional intelligence increased, the higher emotional intelligence customer-contact employees have the lighter influence of job stress on customer-oriented behavior. Because higher emotional intelligence affords them the ability to adjust their harmful affections (e.g. job stress), and thereby show the better customer-oriented behavior than others. Alternative, this study provides salient implications for service firms for developing customer-oriented behavior programs. More specifically, job satisfaction, job involvement, job stress and emotional intelligence play important role in customer-oriented behavior of service employees. This suggests that service firms can create favorable customer-oriented behavior employees through these variables. From this
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perspective, a program that can enhance job satisfaction, job involvement, and emotional intelligence as well as can diminish job stress will be a good instrument for service firms. We believe that this study provides meaningful insights into how affective responses affect customer-contact employees behaviour as well as how service firms can shape more favorable customer-contact employees. Furthermore, this research represents the first study to investigate the relationship between job involvement and customer-oriented behavior, and we further discuss the moderation effect of emotional intelligence on the relationship between job stress and customer-oriented behavior. We also believe that the results and practices of this study are valuable for service firms to adopt in the future. There are other important customer-oriented behavior related variables apart from those investigated in our study that warrant future study. For example, personality of customercontact employees should be investigated to access the effect or moderation effect on customer-oriented behavior. One limitation of this study was the cross-section survey; they suggest future research can conduct a longitude investigation to verify the casual relationship between job related variables and customer-oriented behavior.

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Research Methodology
5.1 Research Design

We will be using descriptive research. In descriptive research we will use survey method research by questionnaires.

5.2 Source of Data

After taking the objectives into the consideration resources of the data were decided by us. Mainly we took data sources as primary data & secondary data.

PRIMARY DATA

Primary data has to be collected through Questionnaires filled by respondents. So required Data for our research will be collected from the responds through questionnaire by doing face to face interview.

SECONDARY DATA

Secondary data will be collected through websites.

5.3 Data Collection Method

Data will be collected through survey method.

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5.4 Target Area

Target population for our research will be as follow. We will be targeting sales people of retail, banking and insurance sector in Ahmedabad,

5.5 Sampling Method

We will be applying convenience sampling method for the survey.

5.6 Sampling Frame

Our sampling frame will be the 220 sales people of Retail Sector and Banking and Insurance Sector.

5.7 Date Collection Instrument

Data will be collected through questionnaire.

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Questionnaire Personal details:

Name:.. Gender: ( ) Male ( ) Female Income Contact No:..

1) According to you, customer have the knowledge about the product( ) Very high ( ) High ( ) Medium ( ) Low ( ) Very low

2)

Customers reliability on you as a source of

product information( ) Very high ( ) High ( ) Medium ( ) Low ( ) Very low

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3)

Do you approach every customer in the

same way? ( ) Yes ( ) NO

4) Do you ever lie to convince the customer to buy the product? ( ) Yes ( ) NO

5)

Do you tell the customer about hidden

banking charges frankly? ( ) Yes ( ) NO

6) Do you take follow up of your potential customers consistently? ( ) Yes ( ) NO

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7) If the customer is being aggressive then probability of your getting angry. ( ) Very high ( ) High ( ) Medium ( ) Low ( ) Very low

8)

Probability of convinced customers buying

the product. ( ) Very high ( ) High ( ) Medium ( ) Low ( ) Very low

9)

Type of selling method preferred by you.

Point based Unit Based Rupee based Others

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10) The capability of solving the doubts of the customer. ( ) Very high ( ) High ( ) Medium ( ) Low ( ) Very low

11) According to you, to what extent emotional appeal will help in convincing the customers. ( ) Very high ( ) High ( ) Medium ( ) Low ( ) Very low

12) Effect of showing benefits and features, encourages the customer. ( ) Always ( ) Frequently ( ) Often ( ) Sometime ( ) Never

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13) The probability of customers decision to buy the product or not on the basis of price only. ( ) Very high ( ) High ( ) Medium ( ) Low ( ) Very low

14) The number of customers who could probably select the satisfactory product for their needs even without the salespersons help. ( ) Very Large ( ) Large ( ) Medium ( ) Small ( ) Very Small

15) According to you, which factor influence the customers most to purchase the product. ( ) Promotional Scheme ( ) Product Quality ( ) Price ( ) Ambiance ( ) Other

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16) Incentives motivate you to be more productive. ( ) Strongly Agree ( ) Agree ( ) Neutral ( ) Disagree ( ) Strongly Disagree

17) To what extent you are hampered in learning customer needs and in explaining products to the customer by not having sufficient time together with customers. ( ) Very high ( ) High ( ) Medium ( ) Low ( ) Very low

18) To what extent, most customers cooperate with your effort to find what they need in a product. ( ) Very high ( ) High ( ) Medium ( ) Low ( ) Very low
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19) About how often most repeat customers make purchases from you. ( ) Daily ( ) Weekly ( ) Fortnightly ( ) Monthly ( ) Other

20) To what extent, it is likely that a satisfied customer will buy from you again. ( ) Always ( ) Frequently ( ) Often ( ) Sometime ( ) Never

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Reference
Banking in India, (Retrieved date, 10 oct, 2012) from http://ir.inflibnet.ac.in

Insurance In India,(July 2011), (Retrieved date, 10 oct, 2012) from http://www.aygrt.net

Literature review, (Jan 2011), (Retrieved date, 22 oct 2012) from http://www.ssrn.com

Customer Relationship Management, (Dec 2010), (Retrieved date, 12 Oct, 2012) from http://www.slideshare.net/hemanthcrpatna/a-project-report-on-customer-satisfaction-at-bigbazaar

Indian Retail Industry, (Apr 2011), (Retrieved date, 15 Oct, 2012) from www.ssrn.com

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