FINAL PROJECT

Marketing Research MKT 470.4

Submitted to:

Shafquat Kabir
Faculty Member School of Business North South University Submitted by: Ghulam Nafisul Bashar 052-009-030 Nadia Kader M Eunus Daud Raian Jahangir 071-798-530 072-340-030 072-291-030

December 28, 2010 North South Universty

Research Topic: Customer Satisfaction of Yellow versus Ecstasy

YELLOW

Acknowledgment

We are solemnly grateful to Almighty Allah who has given us this opportunity to carry out this worthwhile research and enabled us to finish it for MKT 470. We would like to add a few words for the people who helped us in numerous ways.

A special gratitude goes to Mr. Shafquat Kabir (SQK), Course Instructor of MKT 470, Member of the faculty, School Of Business, North South University; for giving us the opportunity to prepare this term paper and help us gain new practical knowledge in the process. His valuable advice, guidelines and continuous monitoring has made this task possible. Also, we want to convey our gratitude to the management of Yellow and Ecstasy and the survey respondents for their support. Their guidance and cooperation helped us to get a more hands-on experience. We have thoroughly enjoyed our term paper and hope it will be appreciated.

LETTER OF TRANSMITTAL

Mr. Shafquat Kabir (SQK) Member of faculty School Of Business North South University Subject: Submission of report on Customer Satisfaction of Yellow versus Ecstasy Dear Sir, It is a great pleasure for us to submit this report on Customer Satisfaction of Yellow versus Ecstasy as a partial requirement of MKT 470. We are pleased to inform you that we have thoroughly enjoyed working through this term paper and all of our representatives have contributed efficiently and moreover effectively to finish this significant report. This has enabled us to gain valuable knowledge and experience that is essential in our career development. Therefore, we would like to take this opportunity to convey our deep regard for your valuable guidance and sincere inspiration. We hope you will enjoy reading this paper.

Yours sincerely, M Eunus Daud 072 340 030

Nadia Kader

071 798 530

..

. Ghulam Nafisul Bashar 052 009 030 .. Raian Jahangir 072-291-030 .

EXECUTIVE SUMMARY

In this competitive world it is widely accepted that customer satisfaction is the most important aspect companies need to consider on in acquiring and maintaining a successful business. There are various factors and underlying issues which have an impact on customer satisfaction. We selected Yellow and Ecstasy and did the analysis on the comparative customer satisfaction between the two companies. From their inception, these two firms have had success stories in the clothing and fashion accessories sector. The objective of this report is to analyze the comparative customer satisfaction between Yellow and Ecstasy. To complete this report we first prepared a structured questionnaire and did a pilot survey on a sample size of 30 respondents. We then analyzed the data using collected raw data, and edited, organized and summarized it. Then the report was prepared for submission using Microsoft Word, Microsoft Excel, Minitab and SPSS software. We followed an exploratory and descriptive style of research design. The results show that Customer Satisfaction of Yellow is more positive than that

of Ecstasy through the proof of the prior established hypothesis of Yellows products are more satisfactory than Ecstasys and Yellows product line up is more appealing than Ecstasy. A bigger sample size would have been more effective for reaching more conclusive results. However we found quite a positive and satisfactory outcome in terms of data from the primary research to arrive at the conclusion.

Introduction:
Origin:
The organizations that we chose for the marketing research project are Yellow and Ecstasy. Both these brands are leading in the clothing and fashion accessories sector in Bangladesh. Our report has the aim of comparing the relative customer satisfaction between the two stated companies and arriving at a conclusion through statistical data.

Significance of the report:

The research procedure and its findings will show the comparative customer satisfaction of Yellow and Ecstasy. The outcome of the research will provide a clear concept of whether Yellow or Ecstasy incorporates factors in business which accounts for and builds customer satisfaction; in other words, what are the strong points of Ecstasy and Yellow in comparison to one another. The findings can help both the companies to identify their weaknesses that

contributes to low customer satisfaction, thus take corrective measures and capitalize on the strengths that contribute to high customer satisfaction.

Company Profile:
YELLOW:
Yellow stands for style with a witty twist. Yellow is a design driven brand that celebrates creative and original thinking to highlight a lighthearted and optimistic view of life through a superior quality product. Our style captures a modern interpretation of fashion and our relaxed attitude expresses a comfortable and confident quality. The adventurous spirit of the line is built from Beximco Group's heritage in innovation and living a life full of passion that is open to discovery. We are inspired by our customers; Unconventional yet high-quality. Progressive yet tastefully casualYellow embraces harmony through conflict. The Yellow Man: You are a confident, intelligent and successful individual

who believes in making his own destiny. Your clothing reflects your personality. You dress creatively, and are not afraid to wear a crisp dress shirt with a pair of jeans to the office. You reflect a confident quality through your cool, comfortable and relaxed attitude. Yellow compliments your lifestyle by offering products for every occasion. From office mornings to an evening with friends, Yellow answers your need for individuality, quality and style by providing superior, fashion forward products. The Yellow Woman: You are a stylish, intelligent and confident soul who enjoys her success. You juggle between your home, work and social circle, and your wardrobe compliments your modern lifestyle. You are on top of the fashion trends, but carefully choose those outfits that enhance your individuality, confirm with your high standards of quality and reflect your young and lighthearted approach to life. Yellow knows what you want. We dress you up in semi-casual attire for your business meetings, and provide the matching accessories to go with that, and then cross-compliment those to go with the head-turning and sexy outfit that you will be wearing out with your friends tonight. Yellow products are inspired by you; young, confident and successful. The Yellow Kid: Yellow kid is a child of a successful couple who is inspired by the success and style of his parents. He has a sense of style and a desire to stand out among his peers. You want to reflect your personality and style through him. You want him to be cool, smart and trendy. This is where Yellow steps in, by providing clothing and accessories for the kids, which are an annex of the parents' personality.

Mission: To form a Yellow Nation and liberate the masses from the trenches of boring, conventional wardrobe! Products: Fashion Clothing and accessories for Mens, Womens and accessories.

Ecstasy:
Company Overview: From its humble beginnings as a single store chain in 1997, Ecstasy has quickly become one of the nations largest fashion retailers. Ecstasy lifestyle store offers exclusive and trendy merchandise to our customers. Ecstasy lifestyle store in Bashundhara City,Level-7.Spread over an area of 12000sq.ft, It houses Ecstasys Top-of the-line brand Tanjim for men and Zarzain for women, along with other international brands for fashionable clothing

Mission: Your Final Fashion Destination Products: Mens Apparel, Women's Apparel, Childrens Apparel, Accessories, Cosmetics

Problem Definition:
For the success of companies like Yellow and Ecstasy, the effective and efficient existence of some factors is necessary which in turn increases Customer Satisfaction. Some of these factors are Brand Preference, Product Quality, Shopping Experience, etc. Positive yields from these factors increase Customer Satisfaction. In our research, we have tried to find out how both Yellow and Ecstasy score on the factors that have a direct impact on Customer Satisfaction and we will use those results to conclude which

company if the two has more positive Customer Satisfaction. Based on the above scenario discussed, we could say that the Decision Problem here is: Decision Problem: Is Yellows Customer Satisfaction higher than that of Ecstasys? Consequently, the Research Problem in this scenario would then be: Research Problem: To determine the comparative customer satisfaction of Yellow versus Ecstasy

Approach to the problem:

We conducted a pilot survey through a structured questionnaire where the sample size was 31 in order to gain an insight to the comparative customer satisfaction of Yellow and Ecstasy. As the overall Hypothesis we seek to prove that:

Overall Hypothesis: Customer Satisfaction of Yellow is more than that of Customer satisfaction of Ecstasy
To reach to the overall hypothesis we have to conduct the following hypothesis:

Hypothesis 1: Yellows products are more satisfactory than Ecstasys Hypothesis 2: Ecstasys products have lower quality than Yellows Hypothesis 3: Yellows product line up is more appealing than Ecstasy

Research Design
Using descriptive research methodology, we created a direct- structured questionnaire with relevant questions to identify the comparative levels of customer satisfaction between Yellow and Ecstasy. With the assistance of our respected course instructor, we examined our questionnaire before conducting the survey and incorporated questions which could give important outputs related to our study.

Sampling:
Because of restrictions with regards to size of the population, time, financial expenses and often, access to all cases, it is, at times, not possible to work on census, at least in all marketing researches. In such conditions, the researcher selects a precise number of cases from all available ones. This is the reason why we have taken a Convenient Sampling approach. Convenience sampling is used where the researcher is interested in getting an inexpensive and/or easy estimate of the truth. As the name suggests, the cases are selected because they are easiest to obtain or contact. We have employed this non-probability sampling effort to get a gross estimate of the results, without incurring the cost or time required to select a random sample. This method is subject to bias. However, it may still be reliable

enough if there is little variation in the population. The sample size we have selected is 31 given the non-response rate which might occur in this type of research.

Confidence Interval = 95% Chi Square = 3.841 Response Distribution = 50% Significance Level = 5% Population Size = 45,000 Sample Size = 31 Margin of Error = 17.60% The margin of error is the amount of error that can be tolerated in the results. Since the sample size here is small representing the entire population of customers of Yellow and Ecstasy, the margin of error is slightly on the higher side.

Data Collection
We conducted the survey ourselves on 31 respondents involving both genders through a structured questionnaire. This process was a part of our primary data collection. For secondary data collection we observed their facebook group, because they have no proper website or, any previous survey has been conducted.

Durability
Chi-Square Test: Yellow, Ecstasy, Both, None Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts Yellow Ecstasy 1 14 7.75 9 7.75 Both 7 7.75 0.073 24 23.25 0.024 31 1 7.75 5.879 30 93 None Total 31

5.040 0.202 2 17 23.25 1.680 Total 31 22 23.25 0.067 31

23.25 1.960 31 124

Chi-Sq = 14.925, DF = 3, P-Value = 0.002 We stated in our hypothesis that durability is one of the factors related to the Hypothesis that "Ecstasys products have low quality" As the P-Value of Durability between Yellow and Ecstasy is less than the significance level 0.05; so we can reject the null hypothesis that; Ho= Ecstasy's products are less durable than Yellows.

From this sample size and analysis, we cannot conclude that Ecstasys products are less durable than Yellows.

Word of Mouth
Chi-Square Test: Yellow, Ecstasy Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts Yellow Ecstasy Total 1 13 15.50 0.403 2 18 15.50 0.403 Total 31 18 15.50 0.403 13 15.50 0.403 31 62 31 31

Chi-Sq = 1.613, DF = 1, P-Value = 0.204 We stated in our hypothesis that Word of Mouth is one of the factors related to the Hypothesis that "Yellows products are more satisfactory than Ecstasys" As the P-Value of Word of Mouth between Yellow and Ecstasy is greater than the significance level 0.05; so we cannot reject the null hypothesis that; Ho= Yellow is recommended more than Ecstasy through Word of Mouth.

From this sample size and analysis, we can say that Yellow may have more positive Word of Mouth than Ecstasy.

Repeat Purchase
Chi-Square Test: Yellow, Ecstasy Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts Yellow Ecstasy Total 1 19 19.00 0.000 2 12 12.00 0.000 Total 31 19 19.00 0.000 12 12.00 0.000 31 62 24 38

Chi-Sq = 0.000, DF = 1, P-Value = 1.000 We stated in our hypothesis that repeat purchase is one of the factors related to the Hypothesis that "Yellows products are more satisfactory than Ecstasys" As the P-Value of repeat purchase between Yellow and Ecstasy is greater than the significance level 0.05; so we cannot reject the null hypothesis that; Ho= Repeat purchase of Yellow is more than Ecstasy.

From the sample size and analysis, we can say that Repeat purchase of Yellow may be more than Ecstasy.

Product Quality (Fabric)

Chi-Square Test: Yellow, Ecstasy, Both, None Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts

Yellow Ecstasy Both None Total 1 8 7.75 0.008 2 23 14 7.75 5.040 17 7 7.75 2 7.75 31

0.073 4.266 24 29 93

23.25 23.25 23.25 23.25 0.003 Total 31 1.680 0.024 1.422 31 31 31 124

Chi-Sq = 12.516, DF = 3, P-Value = 0.006 We stated in our hypothesis that Fabric or Product Quality is one of the factors related to the Hypothesis that "Ecstasys products have low quality" As the P-Value of fabric quality between Yellow and Ecstasy is less than the significance level 0.05; so we can reject the null hypothesis that; Ho= Ecstasy's products have low Product Quality (Fabric). From the sample size and analysis, we cannot conclude that Product Quality (Fabric) of Ecstasy is low.

Brand Preference
Chi-Square Test: Yellow, Ecstasy Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts Yellow Ecstasy Total 1 14 15.50 0.145 2 17 15.50 0.145 Total 31 17 15.50 0.145 14 15.50 0.145 31 62 31 31

Chi-Sq = 0.581, DF = 1, P-Value = 0.446 We stated in our hypothesis that brand preference is one of the factors related to the Hypothesis that "Yellows products are more satisfactory than Ecstasys" As the P-Value of Brand Preference between Yellow and Ecstasy is more than the significance level 0.05; so we cannot reject the null hypothesis that; Ho= Ecstasy's products have lower Brand Preference than Yellows. From the sample size and analysis, we can say that Yellow's brand preference may be greater than Ecstasys.

Price
Chi-Square Test: Yellow, Ecstasy, Both Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts

Yellow Ecstasy Both Total 1 12 10.33 0.269 2 19 20.67 0.134 Total 31 15 4 31

10.33 10.33 2.108 3.882 16 27 62

20.67 20.67 1.054 1.941 31 31 93

Chi-Sq = 9.387, DF = 2, P-Value = 0.009 We stated in our hypothesis that Price is one of the factors related to the Hypothesis that "Yellows products are more satisfactory than Ecstasys" As the P-Value of Price between Yellow and Ecstasy is less than the significance level 0.05; so we can reject the null hypothesis that; Ho= Yellow's pricing is more than Ecstasys. From the sample size and analysis, we cannot conclude that Yellow's pricing is more than Ecstasys.

Quality (design)
Chi-Square Test: Yellow, Ecstasy, Both Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts Yellow Ecstasy Both Total 1 13 10.33 0.688 11 7 31

10.33 10.33 0.043 1.075

18 20.67 0.344

20

24

62

20.67 20.67 0.022 0.538 31 31 93

Total

31

Chi-Sq = 2.710, DF = 2, P-Value = 0.258 We stated in our hypothesis that Quality is one of the factors related to the Hypothesis that "Yellows products are more satisfactory than Ecstasys" As the P-Value of Quality between Yellow and Ecstasy is greater than the significance level 0.05; so we cannot reject the null hypothesis that; Ho= Yellow is more preferable than Ecstasy in the context of Quality. From the sample size and analysis, we can say that Yellow may be more preferable than Ecstasy in the context of Quality.

Trendiness
Chi-Square Test: Yellow, Ecstasy, Both Expected counts are printed below observed counts Chi-Square contributions are printed below expected counts Yellow Ecstasy Both Total 1 8 10.33 0.527 19 4 31

10.33 10.33 7.269 3.882

23 20.67 0.263

12

27

62

20.67 20.67 3.634 1.941 31 31 93

Total

31

Chi-Sq = 17.516, DF = 2, P-Value = 0.000

We stated in our hypothesis that Trendiness is one of the factors related to the Hypothesis that "Ecstasys products have low quality". As the P-Value of Trendiness between Yellow and Ecstasy is less than the significance level 0.05; so we can reject the null hypothesis that; Ho= Ecstasy's products are less trendy than Yellows. From the sample size and analysis, we cannot conclude that Ecstasy's products are less trendy than Yellows.

Location of Outlet
Expected counts are printed below observed counts

One-Sample T: Location

Test of mu = 3 vs not = 3 Variable T Location 31 N P 2.613 1.256 0.226 (2.152, 3.074) Mean StDev SE Mean 95% CI

-1.72 0.097

We stated in our hypothesis that Location of outlets is one of the factors related to the Hypothesis that Yellows products are more satisfactory than Ecstasys. As the P-Value of Location between Yellow and Ecstasy is more than the significance level 0.05; so we cannot reject the null hypothesis that; Ho= Ecstasy's outlets locations are more inconvenient than Yellows. From the sample size and analysis, we may say that Ecstasy's outlets locations are more inconvenient than Yellows.

Price Reasonability

Expected counts are printed below observed counts One-Sample T: Pricing Reasonability

Test of mu = 3 vs not = 3 Variable T P 31 2.613 0.955 0.172 (2.263, 2.963) N Mean StDev SE Mean 95% CI

Reasonability -2.26 0.031

We stated in our hypothesis that Product-Price Relationship is one of the factors related to the Hypothesis that Ecstasys products have low quality than Yellows. As the P-Value of Product-Price Relationship between Yellow and Ecstasy is less than the significance level 0.05; so we can reject the null hypothesis that; Ho= Yellows products are more reasonably priced than Ecstasys. From the sample size and analysis, we cannot conclude that Yellows products are more reasonably priced than Ecstasy's.

Line assortment
Expected counts are printed below observed counts One-Sample T: Line assortment

Test of mu = 3 vs not = 3 Variable P Line Assortment 31 2.839 1.393 0.250 (2.328, 3.350) -0.64 0.524 N Mean StDev SE Mean 95% CI T

We stated in our hypothesis that Line assortment is one of the factors related to the Hypothesis that Yellows product line up is more appealing than Ecstasys. As the P-Value of Line assortment between Yellow and Ecstasy is more than the significance level 0.05; so we cannot reject the null hypothesis that; Ho= Yellow has a better collection of clothes than Ecstasy. From the sample size and analysis, we can say that Yellow has a better collection of clothes than Ecstasy.

Salespersons Behavior
Expected counts are printed below observed counts One-Sample T: Salespersons Behavior

Test of mu = 3 vs not = 3 Variable N Mean StDev SE Mean 0.179 95% CI T P

Salespersons Behavior 31 2.742 0.999

(2.376, 3.108) -1.44 0.161

We stated in our hypothesis that Salespersons Behavior is one of the factors related to the Hypothesis that Yellows products are more satisfactory than Ecstasys. As the P-Value of Salespersons Behavior between Yellow and Ecstasy is more than the significance level 0.05; so we cannot reject the null hypothesis that; Ho= Yellows salespersons are more helpful and cordial than Ecstasys From the sample size and analysis, we can say that Yellows salespersons are more helpful and cordial than Ecstasys

Shopping Environment
Expected counts are printed below observed counts

One-Sample T: Shopping Environment Test of mu = 3 vs not = 3

Variable

Mean StDev SE Mean 0.240

95% CI

Environment 31 2.871 1.335 0.595

(2.381, 3.361) -0.54

We stated in our hypothesis that Shopping Environment is one of the factors related to the Hypothesis that Yellows products are more satisfactory than Ecstasys. As the P-Value of Shopping Environment between Yellow and Ecstasy is more than the significance level 0.05; so we cannot reject the null hypothesis that; Ho= Yellows shopping environment is much better than Ecstasys. From the sample size and analysis, we can say that Yellows shopping environment is much better than Ecstasys.

Final Research Outcome

Hypothesis 1: Yellows products are more satisfactory than Ecstasys
Under this hypothesis we identified several underlying factors and issues which were: 1. Price 2. Quality 3. Repeat Purchase 4. Word of Mouth 5. Brand Preference Through our statistical analysis, it has been found out that Yellows Quality, Repeat Purchase, Word of Mouth and Brand Preference is more than that of Ecstasys. Since more than 70% of the evidence supports hypothesis 1, we can conclude that Hypothesis 1 cannot be rejected, that is, Yellows products may be more satisfactory than Ecstasys.

Hypothesis 2: Ecstasys products have lower quality than Yellows

Under this hypothesis we identified several underlying factors and issues which were: 1. Product Quality 2. Product-Price Relationship 3. Trendy products

4. Durability 5. Designs are not up to date Except the factor of Designs are not up to date, all the other factors of Product Quality, Product Price Relationship, Trendy products, and Durability indicate that less than 70% of the evidence supports hypothesis 2. Hence we can say that Hypothesis 2 can be rejected, that is, Ecstasys products do not have lower quality than Yellows.

Hypothesis 3: Yellows product line up is more appealing than Ecstasy

Under this hypothesis we identified several underlying factors and issues which were: 1. Product Comparison 2. Status recognition 3. Line assortment 4. Unique/Outstanding design

Through our statistical analysis, it has been found out that Status recognition, Line assortment and Unique/Outstanding design of Yellow is more favorable than that of Ecstasy. Since more than 70% of the evidence supports hypothesis 3, we can conclude that Hypothesis 3 cannot be rejected, that is, Yellows product line up may be more appealing than Ecstasys.

Thus, we can arrive at our overall hypothesis to prove it correct. That is to say, Customer Satisfaction of Yellow is more than that of Customer satisfaction of Ecstasy.

Limitations
Although we tried our level best for the research study to be accurate, still there are limitations. When considering the findings, these limitations should be taken in to account. It will be helpful if anyone wants to conduct a further research on the same topic. In this particular research, we are the decision makers as well as the marketing researchers. So, a tendency of biasness can be an issue. Also, this marketing research does not ensure absolute success due to the quite a few constraints that we were subjected to ( i.e. time constraint, small sample size, etc); it is simply a recognition of the environment within which marketing takes place. The survey was conducted only in Dhaka. The companys has outlet in other districts too. So, the result focuses only on that regions customers. If more regions or area was surveyed then the measurability and the visibility of the project would have been more reliable and valid

Conclusion
It is known that both Yellow and Ecstasy are leading fashion apparel brands in Bangladesh. Till now, no research has been conducted in terms of comparing the success of these two brands in the context of Customer Satisfaction. With this research work, we tried our level best to acquire and present enough evidence of the fact that the Customer Satisfaction of Yellow is rated higher than that of Ecstasy. Most of the findings of the research have resulted in favor of our hypothesis that we stated at the beginning of our report and justified our main purpose of this research work. Hence, in context to our hypothesis, we can conclude by saying that we have been successful in establishing and proving our hypothesis correct, that is, Yellows customer satisfaction is higher than that of Ecstasys.

Appendix
Website: o http://www.yellowretailconcepts.com http://twitter.com/Yellownation o http://www.ecstasybd.com o http://www.facebook.com/pages/Lifestyle-store o http://www.facebook.com/pages/Yellow/205807418715
o http://www.raosoft.com/samplesize.html

Marketing Research : Naresh K. Malhotra