Final Research Project

On

Impact of Shopper, Store and Situational Factors on Store

Image, Satisfaction and Loyalty of Customers

A Study on Westside Stores

Submitted in partial fulfillment of the Master of Business Administration

(MBA) Programme

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 Table of Contents

Acknowledgment……………………………………………………………….
2

Executive Summary………………………………………….………………...5

Introduction…………………………………………………………………….6

Literature Review………………………………………………………………8

Retail Industry: An Overview………………………………………………...10

Objective of Study…………………………………………………………….16

Westside: Retail Giant………………………………………………………...18

Research Methodology………………………………………………………..25

Hypothesis…………………………………………………………………….26

Data Analysis…………………………………………………………………35

Consumer Pull Factors (Conclusion)…..……………………………………..43

Recommendations…………………………………………………………….44

Limitations of Study…………………………………………………………..45

Bibliography…………………………………………………………………..47

Questionnaire…………………………………………………………………48

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 Executive Summary

The enormous retail boom in India has given space to many companies who have
mushroomed out to benefit from this retail boom, which is nothing but a structured
format of the unorganized retail business which is being done in India from ages.

Many stores have come up with exquisite interiors, state of the art infrastructure and the
best possible brands to the customer which has led to the growth of mall culture in
India. The stores try and attract customers by providing them with such services and
plethora of options in brands in different categories so that they can retail customers for
long and make them loyal towards their retail stores.

The retail business is booming in India and there has been remarkable shift in the
buying behavior of the people from traditional stores to these departmental stores. It
becomes important for the marketers to understand these relationships for successful
design and execution of retail strategies. It would also enable the researcher to
understand the organized retail formats and consumers buying attitude towards these
stores.

The data was collected by getting the questionnaire filled by the respondents who were
loyalty card holders to find out that what makes them loyal towards Westside stores and
makes them visit Westside again and motivates them to purchase more from here. The
purpose of this paper is to raise the question of the relationship between the various
factors and how they lead to store loyalty.

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 Introduction
Retailing consists of the sale of goods or merchandise from a fixed location, such as
a department store ,shopping mall etc .The retailer buys goods or products in large
quantities from manufacturers either directly or through a wholesaler, and then sells
smaller quantities to the end-user. Retail establishments are often called shops or stores.
Retailers are at the end of the supply chain. Manufacturing marketers see the process of
retailing as a necessary part of their overall distribution strategy.

In the retail outlet various type of good and service are provide to the customer but all
the goods and services are generally homogenous in nature through all the other retail
outlets . Product and services of every company are available in every retail outlet. It is
also find that many customer only used to shopping in own decided outlet rather from
every outlets even there is homogenous among the product and service offer by the
every retail outlet .So This put the question in the mind of the every retailer that is there
is any gap between what customer expected from retailers and what retailer provides to
customer during shopping.
No two customers have the identical likes and preferences. Delivery value and
narrowing down the zone of tolerance is a tightrope walk for marketer in organized
retail sector. Especially in market like India the challenges is formidable because
organizations need to cater to a wide and diverse group of customers .Thus building
equity and generating volumes in such complex market tapers down to the function of
managing customer expectation.
Customers take their time to first sketch their needs and then arrive at a specific
decision. At the end of the day the question is what does the customer expect? How to
fulfill the glaring gap between need and expectations? The answers to this question are
“by delivering the value “
But in many case retailers are not aware of what their customer expect. Hence they are
unable to deliver the right value to the right customer and satisfy them .Especially in
this competitive scenario where the customer are well informed, commanding and
demanding at the same time it has become imperative for the organization to be updated
on the “WHAT”,”WHY”and “HOW” of each and every customer. This calls for
empathizing with the customer by indulging into their priorities and decision making.
Even in the case of a product as simple as beauty soap, customer have versatile
expectations like, good packaging fragrance, herbal or medical benefit, glowing skin

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etc. and all this at an affordable price. A daunting task but companies have no option but
to offer the expected value, that too by keeping the operating costs low.

Following general expectations of a typical customer

• Value of Money
• Availability and location
• Service expectations
• Quality in Product
• Need based solution
So in other to deliver the value, Retail outlets in addition to providing products and
services, need to cater for a wide range of motives. The various determinants of retail
outlet preference include cleanliness, well-stocked shelves, and range of products,
helpful staff, disabled access, wide aisles, car parking, multiple billing points and
environmentally friendly goods. These differing motives arise as retailers cater to
different types of shoppers who include economic consumers (concern with value),
personalized consumers (concern with relationships), recreational shoppers (shopping
as a leisure activity) and apathetic consumers (who dislike shopping). Retailers have to
satisfy budding customers, older consumers as well as time crunched individuals whose
motives all tend to be conflicting as well as different. Retailers need to establish a good
image to prevent customers from shopping around. They must cater to shoppers need
for pleasure and practicality.
If expressed as a calculation, customer satisfaction might look something like this:

Customer expectations = Companies Performance/ Companies Satisfaction

Satisfaction is a consumer’s post-purchase evaluation of the overall service experience.

It is an affective reaction in which the consumer’s needs, desires and expectations
during the course of the service experience have been met or exceeded (Lovelock,
2001). Satisfaction in this sense could mean that a supermarket has just barely met the
customer’s expectations, not exceeded nor disappointed those expectations. The
benefits of taking the customer’s response beyond satisfaction at this level by exceeding
expectations, is a competitive strategy many retailers aspire to achieve. There is a
recurrent struggle for existence and survival in the wake of deep competition,
drastically changing customer attitudes and expectation levels.
The study would enable us to understand the impact of various factors that influence a
consumer’s shopping behavior in a departmental store. It would also help in knowing

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the magnitude and direction of movement of these factors amongst each other. These
factors have been divided into three heads- Store, Situation and Shopper factors.

Literature Review

The concept of store loyalty is derived from the concept of brand loyalty which refers to
the tendency to make repeat purchases of products of the same brand. Store loyalty
refers to the tendency to repeatedly shop at the same store for similar or other products.
A loyal customer would give preference to a specific store and would tend to be far
more forgiving of errors of the store.

There are three main set of variables that have been found to have an impact on loyalty
of customers:
1. Store Related Variables
2 .Shopper Related Variables
3. Situation Related Variables

Loyalty has been found to be greatly influenced by Store Related Variables. Some of
the important store related variables are Shop location, Products Range and Store
Image. In consumer priorities, assortment and variety come after convenience and
price. Shop location is an influencing variable on loyalty as convenience of shopping is
among the main criteria of the customers. Location related variables are given
importance in analyzing both trade areas and retail patronage behavior .The consumers
are favorably inclined to revisit a store where they have positive shopping experiences
like a great range of assortments , good environment etc. The image of the store has
also great effect on the loyalty of the customers. Store image reflects shopper’s
perception of a store in terms of functional and psychological attributes.

Loyalty is also influenced by shopper related variables. Several factors such as age,
income and social class of the shopper have found to influence on customer’s decisions.
Customers belonging to different age groups prefer different stores. There have been
researches done which suggests that the greater the congruence between self image and
store image, the greater is the probability that the customer is loyal..There is a direct
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linkage between personal values and desired consumer benefits. This means different
customers have different levels of desired consumer benefits which vary according to
their own perceived values.

Loyalty is also influenced by the situation related variables. These factors include task
definition, level of involvement, shopping orientation and usage of information. These
indicate the intensity of need and the comfort of the shopper in taking a purchase
decision. The store choice has been found to depend on buying situations that differ
with the level of involvement (Moschis, G.P .1976,’ Shopping Orientations and
Consumer Uses of Information)

Thus we can say that the existence of the customer is integral to the existence of the
retailer. The ability to understand consumers is the key to developing a successful retail
strategy. A key factor in understanding customers is identifying the customers for
product or service, which means the target segment, and the demographics of this
segment, their needs and buying behavior.

Recognition of the need for a product or a service is the first stage that may lead to a
consumer buying. The need may be psychological or functional.

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 Retail Industry: An Overview

Retailing is the interface between the producer and the individual consumer buying for
personal consumption. This excludes direct interface between the manufacturer and
institutional buyers such as the government and other bulk customers. A retailer is one
who stocks the producer’s goods and is involved in the act of selling it to the individual
consumer, at a margin of profit. As such, retailing is the last link that connects the
individual consumer with the manufacturing and distribution chain.

Retail has played a major role world over in increasing productivity across a wide range
of consumer goods and services .The impact can be best seen in countries like U.S.A.,
U.K., Mexico, Thailand and more recently China. Economies of countries like
Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also heavily assisted by the
retail sector.

Top Retailers Worldwide: Rank Retailer Home Country

1. Wal-Mart Stores, Inc. U.S.A.

2. Carrefour Group France
3. The Kroger Co. U.S.A.
4. The Home Depot, Inc. U.S.A.
5. Metro Germany

The retail industry in India is of late often being hailed as one of the sunrise sectors in
the economy. 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 eyes. With a contribution of 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.

Retail sales in India amounted to about Rs.7400 billion in 2002, expanded at an average
annual rate of 7% during 1999-2002. With the upturn in economic growth during 2003,
retail sales are also expected to expand at a higher pace of nearly 10%. Across the
country, retail sales in real terms are predicted to rise more rapidly than consumer
expenditure during 2003-08. The forecast growth in real retail sales during 2003- 2008
is 8.3% per year, compared with 7.1% for consumer expenditure. Modernization of the
Indian retail sector will be reflected in rapid growth in sales of supermarkets,

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departmental stores and hyper marts. Sales from these large-format stores are to expand
at growth rates ranging from 24% to 49% per year during 2003-2008, according to a
latest report by Euro monitor International, a leading provider of global consumer-
market intelligence.

A. T. Kearney Inc. places India 6th on a global retail development index. The country
has the highest per capita outlets in the world - 5.5 outlets per 1000 population. Around
7% of the population in India is engaged in retailing, as compared to 20% in the USA.

In a developing country like India, a large chunk of consumer expenditure is on basic

necessities, especially food-related items. Hence, it is not surprising that food,
beverages and tobacco accounted for as much as 71% of retail sales in 2002. The share
of food related items had, however, declined over the review period, down from 73% in
1999. This is not unexpected, because with income growth, Indians, like consumers
elsewhere, have started spending more on non-food items compared with food products.
Sales through supermarkets and department stores are small compared with overall
retail sales. Nevertheless, their sales have grown much more rapidly, at almost a triple
rate (about 30% per year during the review period). This high acceleration in sales
through modern retail formats is expected to continue during the next few years, with
the rapid growth in numbers of such outlets due to consumer demand and business
potential. The factors responsible for the development of the retail sector in India can be
broadly summarized as follows:

• Rising incomes and improvements in infrastructure are enlarging consumer

markets and accelerating the convergence of consumer tastes. Looking at income
classification, the National Council of Applied Economic Research (NCAER)
classified approximately 50% of the Indian population as low income in 1994-95;
this is expected to decline to 17.8% by 2006-07.
• Liberalization of the Indian economy which has led to the opening up of the
market for consumer goods has helped the MNC brands like Kellogs, Unilever,
Nestle, etc. to make significant inroads into the vast consumer market by offering
a wide range of choices to the Indian consumers.
• Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic,
etc.
• The internet revolution is making the Indian consumer more accessible to the
growing influences of domestic and foreign retail chains. Reach of satellite T.V.
channels is helping in creating awareness about global products for local markets.
About 47% of India’s population is under the age of 20; and this will increase to
55% by 2015. This young population, which is technology-savvy, watch more
than 50 TV satellite channels, and display the highest propensity to spend, will

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 immensely contribute to the growth of the retail sector in the country. As India
continues to get strongly integrated with the world economy riding the waves of
globalization, the retail sector is bound to take big leaps in the years to come.

The Indian retail sector is estimated to have a market size of about $ 180 billion; but the
organized sector represents only 2% share of this market. Most of the organized
retailing in the country has just started recently, and has been concentrated mainly in the
metro cities. India is the last large Asian economy to liberalize its retail sector. In
Thailand, more than 40% of all consumer goods are sold through the super markets and
departmental stores. A similar phenomenon has swept through all other Asian countries.
Organized retailing in India has a huge scope because of the vast market and the
growing consciousness of the consumer about product quality and services. A study
conducted by Fitch, expects the organized retail industry to continue to grow rapidly,
especially through increased levels of penetration in larger towns and metros and also
as it begins to spread to smaller cities and B class towns. Fuelling this growth is the
growth in development of the retail-specific properties and malls. According to the
estimates available with Fitch, close to 25mn sq. ft. of retail space is being developed
and will be available for occupation over the next 36-48 months. Fitch expects
organized retail to capture 15%-20% market share by 2010. A McKinsey report on India
says organized retailing would increase the efficiency and productivity of entire gamut
of economic activities, and would help in achieving higher GDP growth. At 6%, the
share of employment of retail in India is low, even when compared to Brazil (14%), and
Poland (12%).

Malls in India

Over the last 2-3 years, the Indian consumer market has seen a significant growth in the
number of modern-day shopping centers, popularly known as ‘malls’. There is an
increased demand for quality retail space from a varied segment of large-format
retailers and brands, which include food and apparel chains, consumer durables and
multiplex operators. Shopping-centre development has attracted real-estate developers
and corporate houses across cities in India. As a result, from just 3 malls in 2000, India
is all set to have over 220 malls by 2005. Today, the expected demand for quality retail
space in 2006 is estimated to be around 40 million square feet. While previously it was
the large, organized retailers –with their modern, up-market outlets, and direct
consumer interface- who had been a key factor driving the growth of organized retail in
the country, now it is the malls which are playing the role.

Factors such as availability of physical space, population densities, city planning, and
socio-economic parameters have driven the Indian market to evolve, to a certain extent,

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its own definition of a ‘mall’. For example, while a mall in USA is 400,000 to 1 million
sq.ft. in size, an Indian version can be anywhere between 80,000 sq.ft. and 500,000
sq.ft. By 2005, total mall space in the 6 cities of Mumbai, Bangalore, Hyderabad,
Chennai, Kolkata, and National Capital Region (Delhi, Noida, Gurgaon) is expected to
increase to over 21.1 million sq. ft. Compared to other big cities, Kolkata and
Hyderabad are relatively new entrants in the mall segment, but are witnessing quick
growth. Smaller cities like Pune, Ahmedabad, Lucknow, Ludhiana, Jaipur, Chandigarh
and Indore, are also expected to see a formidable growth in the growth of malls in the
near future. But malls in India need to have a clear positioning through the development
of differential product assortment and differential pricing, in order to compete
effectively in a growing mall market. Segmentation in malls, like up-market malls, mid-
market malls, etc., proper planning, correct identification of needs, quality products at
lower prices, the right store mix, and the right timing, would Ensure the success of the
‘mall revolution’ in India.

Challenges of Retailing in India

Retailing as an industry in India has still a long way to go. To become a truly
flourishing industry, retailing needs to cross the following hurdles:
• Automatic approval is not allowed for foreign investment in retail.
• Regulations restricting real estate purchases, and cumbersome local laws.
• Taxation, which favors small retail businesses.
• Absence of developed supply chain and integrated IT management.
• Lack of trained work force.
• Low skill level for retailing management.
• Intrinsic complexity of retailing – rapid price changes, constant threat of product
obsolescence and low margins.

The retailers in India have to learn both the art and science of retailing by closely
following:

How retailers in other parts of the world are organizing, managing, and coping up with
new challenges in an ever-changing marketplace. Indian retailers must use innovative
retail formats to enhance shopping experience, and try to understand the regional
variations in consumer attitudes to retailing.

Retail marketing efforts have to improve in the country - advertising, promotions, and
campaigns to attract customers; building loyalty by identifying regular shoppers and
offering benefits to them; efficiently managing high-value customers; and monitoring

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customer needs constantly, are some of the aspects which Indian retailers need to focus
upon on a more pro-active basis.

Despite the presence of the basic ingredients required for growth of the retail industry
in
India, it still faces substantial hurdles that will retard and inhibit its growth in the future.

One of the key impediments is the lack of FDI status. This has largely limited capital
investments in supply chain infrastructure, which is a key for development and growth
of food retailing and has also constrained access to world-class retail practices.

Multiplicity and complexity of taxes, lack of proper infrastructure and relatively high
cost of real estate are the other impediments to the growth of retailing. While the
industry and the government are trying to remove many of these hurdles, some of the
roadblocks will remain and will continue to affect the smooth growth of this industry.

Fitch believes that while the market share of organised retail will grow and become
significant in the next decade, this growth would, however, not be at the same rapid
pace as in other emerging markets. Organised retailing in India is gaining wider
acceptance. The development of the organised retail sector, during the last decade, has
begun to change the face of retailing, especially, in the major metros of the country.
Experiences in the developed and developing countries prove that performance of
organised retail is strongly linked to the performance of the economy as a whole. This is
mainly on account of the reach and penetration of this business and its scientific
approach in dealing with customers and their needs. In spite of the positive prospects of
this industry, Indian retailing faces some major hurdles (see Table 1), which have
stymied its growth. Early signs of organized retail were visible even in the 1970s when
Nilgiris (food), Viveks (consumer durables) and Nallis (sarees) started their operations.

However, as a result of the roadblocks (mentioned in Table 1), the industry remained in
a rudimentary stage. While these retailers gave the necessary ambience to customers,
little effort was made to introduce world-class customer care practices and improve
operating efficiencies. Moreover, most of these modern developments were restricted to
south India, which is still regarded as a ‘Mecca of Indian Retail’.

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 Seasons of Retailing

Summer Season
• It’s usually from May to July.

• Low sales are recorded during this period.

• This season is good for promotions and launching new advertisement campaigns.

Fall Season
• August and September are important months.

• Retailers are provided a good opportunity to increase their share.

Holiday Season
• It begins usually at the end of October and carries through the fourth quarter ending in
January.
• Festivals like Dusherra, Diwali, Halloween, Christmas and New Year Eve bring more
customers.
• Usually it’s the best time for retailers.

Spring Season
• It lasts from February to May

• Fewer footfalls are recorded in malls.

Customers
Men
• While guys tend to prioritize fashion to a lesser degree than girls, “right-look” and
the “dude” image is still important to them.

• Boys tend to spend more money on electronic gadgets, food, sports goods and music.

Women

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• “Tween” girls represent a lucrative opportunity for retailers. They are going to become
the future buyers.

• “Teen” girls are more trend savvy. It’s not just the clothes and accessories, but the
whole look that the teen girls aspire to define.
• “Post teen” girls spend more on jewellery and household items and thus they contribute
a lot more in terms of revenue.

Objective of the study

SHOPPER FACTORS
1) What influences a shopper to patronize a National Brand or Private Label?

2) Which of the two ‘manifest satisfaction’ or ‘latent satisfaction’ has stronger impact on
store loyalty?

3) Does the similarity between retail mix-elements and desired benefits of customer lead to
higher shopper loyalty?

SITUATIONAL FACTORS

1) Is there any impact of ‘recency of purchase experience’ and ‘frequency of visit to a

store’ on probability of repurchase from that store?
2) Is there any impact of ‘buying situations’ and ‘level of involvement’ on the store
choice?
3) Of the three, ‘mall image’ (tenancy mix), ‘socio-economic status,’ and ‘store format’ of
shoppers, which has the highest impact on ‘store image’?

STORE FACTORS
1) How convenience and location influences a shopper’s loyalty for a store?
2) How differentiation in type and quality of assortment offered by a store affects the
buying behavior of shopper?
3) How similarity between self-image and store-image leads impacts store loyalty?
4) How store image impacts store loyalty and how it influences store satisfaction in
shaping shoppers’ overall store loyalty?

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The location of the retail store had, for a long time, been considered the most important ‘P’
in retailing. If a retail store was located in the right place, it was considered to be adequate
assurance for success. Over the years, with advent of non-store retailing and the rise in web-
based retail, merely choosing the right location can’t be considered adequate. However, the
retail location is an important part of the retail strategy, as the location of the store conveys a
fair amount of its image. It also influences the merchandise mix and the interior layout of
the store.

While a retailer can change his merchandise mix, adjust prices, improve communication
with consumers and offer better services, once a store comes into existence, it is fairly
difficult to change the location. Moving from one location to another may result in the loss
of customers and employees. Moreover, the new location may not always have the benefits
of the earlier one.

Types of Locations

Various options are available to the retailer, for choosing the location of this store. The
choice of the location of the store again, depends on the target audience and the kind of
merchandise to be sold. For ex, the location of a convenience store would not be suitable for
that of an expensive jewellery boutique. Typically, a store maybe,

1. Freestanding/ Isolated Store,

2. Part of a business district, or

3. Part of a Shopping Center- A shopping center has been defined by the International
Council of Shopping Centers as “a group of retail and other commercial
establishments that is planned, developed, owned and manager as a single property”.
The availability of parking is an important feature of every shopping center. Westside
Mall in Rajouri is a part of the shopping center.

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 Westside-Retail Giant

Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of
India's largest and fastest growing chains of retail stores.

The Westside stores have numerous

departments to meet the varied shopping
needs of customers. These include
Menswear, Women’s wear, Kid’s wear,
Footwear, Cosmetics, Perfumes and
Handbags, Household Accessories, lingerie,
and Gifts. The company has already
established 36 Westside departmental stores
(measuring 15,000-30,000 square feet each)
in Ahmedabad, Bangalore, Chennai, Delhi,
Gurgaon, Ghaziabad & Noida (to be
considered as 1 city), Hyderabad, Indore,
Jaipur, Kolkata, Ludhiana, Lucknow,
Mumbai, Mysore, Nagpur, Pune, Rajkot,
Surat, Vadodara and Jammu. The company
hopes to expand rapidly with similar format
stores that offer a fine balance between style
and price retailing.

Trent ventured into the hypermarket business in

2004 with Star Bazaar, providing an ample
assortment of products made available at the
lowest prices, aptly exemplifying its ‘Chota
Budget, Lambi Shopping’ motto. At present Star
Bazaar has 4 stores in 3 cities located in
Ahmedabad, Mumbai and Bangalore. This store
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offers customers an eclectic array of products
that include staple foods, beverages, health and
beauty products, vegetables, fruits, dairy
products, consumer electronics and household
items at the most affordable prices. Star Bazaar
also includes a largerange of fashionable in-
house garments for men, women and children,
exclusively available at the store.

In addition, Trent recently

acquired a 76% stake in
Landmark, one of the largest
books & music retail chains
in the country. Landmark
began operations in 1987
with its first store in
Chennai with a floor space
of 5500 sq. ft. At present
Landmark have 10 stores,
varying in size from 12,000
sq. ft. to 45,000 sq. ft, 3 in
Chennai and 1 each in
Bangalore, Gurgaon,
Mumbai, Vadodara,
Gurgaon, Pune, Lucknow
and Ahmedabad. Until 1996,
Landmark’s product
portfolio comprised books,
stationery, and greeting
cards. It was later that music
was added to it. Landmark
also sparked the trend of
stocking curios, toys and
other gift items. What
separates Landmark from
other stores of its kind is the
range and depth of its stock.

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 This story began circa 1998 when The Tatas acquired Littlewoods
– a London based retail chain. This acquisition was followed by
the establishment of Trent Ltd (a Tata enterprise that presently
operates Westside). Littlewoods was subsequently renamed
Westside.

In a rapidly evolving retail scenario,

Westside has carved a niche for its brand
of merchandise creating a loyal following.
Currently, the company has 36 Westside
stores measuring 15,000-30,000 square
feet each across 20 cities. With a variety
of designs and styles, everything at
Westside is exclusively designed and the
merchandise ranges from stylized clothes,
footwear and accessories for men, women
and children to well-co-coordinated table
linens, artifacts, home accessories and
furnishings. Well-designed interiors,
sprawling space, prime locations and
coffee shops enhance the customers’
shopping experience.

Westside has garnered numerous accolades -

1. Balanced Scorecard Hall of Fame
2. India Brand Summit – Brand Leadership Retail
3. IFA Visionary of the Year Award, 2002 – Mrs. Simone N. Tata
4. Most Admired Large Format Retail Chain of the Year - Lycra Images Fashion
Awards 2005
5. NDTV Profit Business Leadership Awards 2006 - Retail Category

Mission Statement

“To be regarded by our customers as the most relevant retailer

in the country.”

In order to achieve this goal, we shall develop a comprehensive

understanding of their needs, strive to win their confidence, and offer
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 them best-in-class products and services at affordable prices. We shall
always be in the forefront of fashion and services by anticipating and
exceeding the expectations of our customers.

Our leadership will be the product of our styling, quality and service
consciousness.
We will continue to scale new heights of excellence through
teamwork, in an atmosphere that encourages creativity and
innovativeness.

It is their policy to satisfy our customers with the range, quality and
value of the products we offer. However, if they are dissatisfied with
any item that they might have purchased they would take the
necessary measures to assist them. The customers are expected to
return unused merchandise along with its receipt within 30 days.

“We would exchange the returned items or give our customers a

complete refund. In the event that they do not have the receipt we
would offer them an exchange or provide them a gift voucher to the
current or last known selling price. We have complete confidence in
the quality of our merchandise however should our customers have
any grievances, we would be happy to address them once they are
brought to our attention” said an employee.

Style, affordable prices, quality: these are the factors that have shaped
Westside’s success story in the retail fashion stores business.
Launched in 1998 in Bangalore, the Westside chain has, ever since,
been setting the standards for other fashion retailers to follow.

Westside stands out from the competition for a variety of reasons. One
is that a majority of the brands the chain stocks and sells are its own,
unlike retailers who store multiple labels. About 90 per cent of
Westside’s offerings are home-grown, and they cater to different
customer segments. The other 10 per cent includes toys, cosmetics and
lingerie.

Westside has recently expanded its range of merchandise by offering

outfits from some of India’s best-known fashion designers, among
them Wendell Rodericks, Anita Dongre, Krishna Mehta and Mona

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 Pali. This is an interesting marketing shift, since it means moving
away from the chains only-our-own-brands concept.

Westside is a departmental store having several product line &

according to ET 500 list out of top four retail companies Trent
ranked 3rd as

 Pantaloon retail
 Shoppers shop
 Trent
 Provogue India

Arrangement
1. Ground Floor

• Cosmetics

• Jewellery

• Watches

• Bags

2. Ist Floor

• Women Section

• Children Section

• Household items

3. IInd Floor (Men Section)

• Casual Clothing

• Formal Wear

• Ethnic Wear

• Shoes

Private Brands in Westside

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Research (DIAS)
  2F4U
 SRC
 Gia
 Urban angel
 Intima
 David Jones
 Ascot
 Blackberry
 Lee
 Spykar
 Provogue

To irrigate the space better Westside have the entrance on the

ground floor and exit on the first floor. In case of visual
merchandising all the category of clothes of all sizes and varieties
are displayed and hence the consumption of space for shelves is
reduced. And it is convenient for customers to choose and for the
attendants to support buying. Profitability of Westside Delhi is
more than that in Pune and Bangalore because youth here have
much spending power. It is also driven from strong demand
backed by quality products and latest fashion.

Services & Store Atmosphere in Westside

 Prepurchase services include accepting telephone & mail

orders, advertising, window & interior display, fitting
rooms, fashion shows
 It provides post purchase service including shipping &
delivery, gift wrapping, adjustments & returns, alteration
& tailoring
 It also provides ancillary services including general
information, check cashing, parking, restaurants, repairs,
interior decorating, credit etc.

The Westside stores wear a bright, festive look and, in keep

with the mood of the season, hosting a festival bright.

With the sole objective of rewarding its loyal customers for their
patronage, Westside has lined up a bonanza of surprise gifts.
Every shopper gets a scratch-and-win card which entitles them

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Research (DIAS)
 entry into a contest. Those making purchases above Rs 1,500 are
also entitled to receive other pleasant surprises

The trendy household section has a complete new range of bed

linen in elephant motifs, floral motifs and paisley design. The
color palette for the festive collection includes flaming orange,
royal blue and other vibrant colors to depict festivity.

The gift section has a plethora of gifts — terracotta pots, urns,

knick-knacks and diyas in beautiful colors, shapes and sizes. The
store has also introduced a new range of furniture and other
household goods, including cabinets, butler trays and mirrors in
wood with an antique finish. An innovative range in wrought iron
and rope has been introduced in utility items which include
magazine racks, folding stools, jam pots on trays and Ganesha in
brass and terracotta.

Facing the challenge

The greatest challenge for Westside in its quest for a place in the retail
sun is not the competition from similar organized players, but from the
unorganized sector (98 per cent of India’s retail garment industry
operates in the unorganized sector).

The other challenge for Westside is that the retail fashion business in
the country is becoming increasingly crowded with new players,
Indian and foreign. Among the new entrants have been Wills Sport,
Lifestyle, Raymond’s (Be), Primus Globus, Nike, Crocodile, Mango
and the latest, Marks & Spencer.

Promotions
1. Club west card program

An assured return-and-exchange policy reinforces customer

confidence in the chain. Another winning Westside idea is Club West,
a customer loyalty programme launched in May 2001. The 30,000-
plus members of this club get rebates at restaurants and on holiday
packages from the Taj Group of Hotels, home delivery of alterations,
and best of all, special shopping hours on the first day of any discount
sales event organized by the chain.
22 Business
Research (DIAS)
 Important benefits of club west card
• Most attractive rewards shopping
• Instant use of the card
• Easy to operate
• Extra convenience
• Validity at all stores

Westside does its regular brand building through advertisements in the

media with brand ambassador Yuvraj Singh and other young models;
more important are its in-house promotions, which peak during the
three main festive seasons: summer, Diwali and Christmas. The
promotions are mostly theme based, with decorations to match, live
bands and other attractions.

2. Fashion Logy

Westside has launched a new ad campaign titled 'Fashion Logy'. The

campaign is designed to provide the buyer with not just clothing, but
also guides and aid on dressing smart, styling and accessorizing. The
campaign sees on-ground activities and promotions designed to
interact with the consumer about their style

It includes women’s corporate wear, girls wear, and glam denim.

The Three Cs

Corporate clothing is a major component of Westside merchandise.

The emphasis here is on the three Cs: Comfort, Crispness and
Coordination, and the goal is to provide the complete corporate look,
where color, clothes and accessories are mixed and matched in a
manner that creates harmony between the person and the clothes he or
she wears.

Westside employees are given regular training for better interaction.

Some things may take longer. The wish list, a tool for customers to let
Westside know their preferences, cannot be realized immediately.
Only if there is an optimum demand can the store look at fulfilling it.
Gia, Westside’s brand for larger-sized requirements, was the outcome
of one such need.

23 Business
Research (DIAS)
 The company identifies star employees in each store and designates
them as coaches responsible for the training of their own store staff.
Today, each store has three kinds of coaches — a customer service
coach, an IT skills coach and a product knowledge coach. The success
of this programme has made it a benchmark for all Tata Group
companies.

Westside provides four levels of service

 Self service- Self service is the corner stone of all discount

operations. Many customers are willing to carry out their
own locate compare select process to save money.
 Self selection- Customer find own goods, although they can
ask for assistance
 Limited Service- Westside also offers services like credit,
merchandizing etc.
 Full Service- Sales people are ready to assist to any phase
of the locate compare select process. Customers who like to
be waited own prefer these types of stores.

Research Methodology
Sample and data collection

This survey was conducted in the context of retail. For 70 percent of

the interviews, data were collected in face-to-face interviews of
customers coming to Westside while exiting point-of-sale venues. For

24 Business
Research (DIAS)
 the remaining 30 percent, because certain retailers prohibit the
interviewing of their clients exiting their stores, interviews took place
in the subjects' homes, as a function of the store they attended most
frequently. The study provides a representative sample of the main
Shopping centre in Delhi. In order to reckon with possible multi-
loyalty, questions related to satisfaction, loyalty and behavior were
asked for the regular main store visited (at least once a week).

Research design
The research design would be descriptive and cross sectional

Data collection
The data would be collected from primary source through
questionnaires, interviews, observations etc. The sample would be
surveyed on the basis of questionnaire and data would be quantified
for further analysis.

Sample size
The sample would be selected on random basis at the store itself. A
sample of 100 respondents would be used in the research. These
would be further divided amongst the stores for an evenly distributed
data collection.

Data Sources
Both Secondary and Primary Sources of data will be used.

The major type of information used is primary data. This is done thru
primary survey. The literature review is a secondary data type. The
sources include books, periodicals, websites, printed literature etc.

Hypothesis

25 Business
Research (DIAS)
 The various hypotheses are based on the store related factors,
situation related factors and shopper related factors.

Hypothesis Based on Store Related Factors

Loyalty is affected by factors that are related to the store,
including-

a. Trade Area Related

Convenience is the primary reason that customers show

patronage towards a particular store. These studies assume that
convenience is the primary reason for loyalty. Most work in
this area stems from a model proposed by Huff (1964). The
Huff Model states that consumer patronage is directly
proportional to utility factors given by square feet and
inversely proportional to disutility factors given by physical
distance. The limits to enhancing loyalty are essentially seen as
limited centripetal pull of a store/ shopping center
(Applebaum, 1966). Location-related factors are given
importance in analyzing both trade areas and retail patronage
behaviour (Hubbard, 1978). These studies most often count the
benefits of locating a store in a shopping center/ mall to
increase the store’s ‘destination’ traffic rather than just stay
with the convenience pull. In fact these studies determine
shopping center traffic more accurately than single store traffic
(Gautschi, 1981). Huff’s model has subsequently been studied
by introducing trade overlap areas for effects on store
patronage (Bucklin, 1971). Generally speaking, these studies
have resulted in the formation of the Theory of Gravitational
Pull in the field of retailing patronage studies. Apart from
distance, several other factors such as income and social class
perceptions have also been studied from the perspective of
retail center patronage decisions (Moore and Barry, 1969).
From above, we formulate the given hypotheses:

26 Business
Research (DIAS)
 Hypothesis 1:

Convenience of location is primary factor shaping

customer loyalty.

Convenience would be Is a loyal patron

given special attention of this store brand
Convenience would be given Pearson Correlation 1 .064
special attention Sig. (2-tailed) .528
N 100 1
is a loyal patron of this store Pearson Correlation .064 1
brand Sig. (2-tailed) .528
N 100 100

According to this table, the significance level is very low i.e. 0.528 so
the hypothesis can’t be accepted. It also shows that the two factors are
low correlated and significance of this is also very low, which is
equals to 0.528, which means that there is no correlation between
these two factors.

Hypothesis 2 :

Convenience is the main motive for shoppers repeat

buying at a store.

27 Business
Research (DIAS)
 b. Product Related- Within a given trade area, studies emphasize
the ‘uniqueness of assortment’ as a way of influencing store
loyalty and patronage. In consumer priorities, assortment and
variety comes after convenience and price (Arnold, Tae, and
Douglas, 1978; Craig, Gosh, and McLafferty, 1984; Louviere and
Gaeth, 1987). Given that consumers are favourably inclined to
revisit a store where they have had positive shopping experiences
(found something they could not find anywhere else), these stores
suggest that competing stores need to differentiate themselves
based on type and quality of assortment offered. The emphasis
here is on tailoring the environmental clues using retail mix
elements to foster patronizing.

One of the used strategies is to develop own store Private labels.

Consumers have distinct perceptions of national and local brands
vis-à-vis the retail private store brands. Categories such as paper,
plastic and wraps, and food products have high penetration of
private brands. The lowest share is observed in case of cosmetics
and baby foods. In India, private brands are found in more than
fifty percent of stores. Category such as grocery and washing
products show a higher presence of such brands (Business Today,
26 October 2003). It has been observed that the impact of the
store brands on the consumer loyalty is lower in product
categories where the ‘quality believability’ of national brands is
higher.

Convenience No. of times

would be given visiting the retail
special attention outlet per week
Convenience would be given Pearson Correlation 1 .023
special attention Sig. (2-tailed) .818
N 100 100
No. of times visiting the Pearson Correlation .023 1
retail outlet per week Sig. (2-tailed) .818
N 100 100

From the table we can see that the significance level is 0.818,
which is very low. This shows a very low confidence level.
Therefore, we cannot accept this hypothesis. We can also see that
the Pearson Correlation Coefficient is 0.023 which shows that

28 Business
Research (DIAS)
 there is no significant relation between the consumer loyalty and
number of times the retail outlet is visited.

Hypothesis 3:
Higher the degree of differentiation in type and quality
of assortment offered higher is the likeability to
shoppers’ revisiting the store.

Product Retail Outlet visits

assortment let per week
Product assortment Pearson Correlation 1 -.043
Sig. (2-tailed) .668
N 100 100
no. of times visiting the retail Pearson Correlation -.043 1
outlet per week Sig. (2-tailed) .668
N 100 100
From the above table we can see that that the significance level is
0.668 which means is very low significance level. This shows
very low confidence level. Thus the hypothesis is not accepted.
We can also see that the Pearson correlation coefficient is -0.043.
This shows that the above two factors are least correlated to each
other. This means that the degree of differentiation in type and
quality of assortment doesn’t make the shopper revisit the store.

Hypothesis Based on Shopper Related Factors

Several factors such as age, income and social class of the
shopper have been found to influence retail patronage decisions
(Moore and mason, 1969). The orientation of the shopper also
impacts the preference of a store. Several studies have found a
correlation between shopping orientations and lifestyle and with
store loyalty and preference for stores. It has been found that
shopper seeking more hedonic gratification from the shopping
tends to patronize ‘new’ format stores that focus on experimental
marketing and offer better ambience and service (Sinha, 2003).
Shopping orientation correlates differently with the information
mix elements, varying with source, source credibility, and
preference for a source by some consumers and usage of such
information (Moschis, 1976).

29 Business
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 The aspect of congruity between the retail mix elements as
designed by the retailer and the self-image/ self-concept of the
consumer has received much attention. Research has shown the
greater the congruence between self-image and store-image; the
greater is the probability that the customer is loyal (Pathak, Crissy
and Sweitzer, 1974; McClure and Ryans, 1968; Dornoff and
Tatham, 1972). It has also been found that if retail mix elements
are in congruence with the desired benefits, it results in customer
loyalty (Osman, 1993). There is a direct linkage between personal
values and desired consumer benefits. Past experience with the
outlet has also emerged as one of the major drivers of loyalty. It
acts as an influencer in forming expectations about desired
benefits from purchasing at a store (Guttman, 1990). A
consumer’s selection of a store is not completely random. The
more recent the purchase experience and more frequent the visits
to the store, the more is the likelihood of repurchasing that
product in that store (Aaker and Jones, 1971).
Several theories can be applied to study information processing
by consumers. One set of theories assumes that evaluation criteria
are considered simultaneously. This theory states that consumers
do not distinguish between objective and subjective evaluation
criteria. They tend to use both simultaneously when arriving at a
decision (Hirschman and Krishnan, 1981). Another set of theories
hold that the process happens sequentially- first there are certain
factors used to make a choice among clusters and then, within the
chosen cluster, other parameters are used for decision-making
(Fotheringham, 1988). It is generally agreed that as dimensions of
comparison among stores increase and, the consumer has to
process vast amounts of information before making a choice, the
hierarchical process becomes more relevant (Black, 1984).
The third set of theories states that consumers use a limited set of
evaluative criteria when making a choice and this varies
depending on personality, context and product. To assess store
perception on attributes that are meaningless to consumers can be
misleading to a retailer. These theories draw significantly from
automatic cognitive information processing models and the
threshold model of consumer behaviour and examine how attitude
leads to behaviour/ patronage (Kau, Paul, and Hill, 1972;

30 Business
Research (DIAS)
 Malhotra, 1983; Pokowiski, Timmermans and Harry, 1997). We
formulate the following hypothesis.

Hypothesis 4:
There is a similarity between self-image of the store
before the visit and store-image after the visit to that
store.

Self image of the Store image in

store in the customer mind
customer mind after thei visit
Self image of the store in the Pearson Correlation
1 -.099
customer mind
Sig. (2-tailed) .329
N 100 100
Store image in customer mind Pearson Correlation -.099 1
after thei visit
Sig. (2-tailed) .329
N 100 100

From the above table we can see that the significance level is
0.329 which is very Low significance level. This shows very low
confidence level. Therefore hypothesis is not accepted. We can
also see that the Pearson Correlation Coefficient is -0.099 which
shows very weak correlation between the two factors. This means
that from our study we can show that the self image of the store
before the visit is very different from the store image after the
visit to that store.

Hypothesis 5:

31 Business
Research (DIAS)
 Likelihood of repurchase from a store depends on recency of
purchase experience and frequency of visit to that store.
Increase the No. of times
purchase from visiting the retail
this store outlet per week
Increase the purchase from Pearson Correlation 1 .023
this store Sig. (2-tailed) .821
N 100 100
No. of times visiting the retail Pearson Correlation .023 1
outlet per week Sig. (2-tailed) .821
N 100 100

From the above table we can clearly see that the significance level
is 0.821 which is very low significance level. This shows very
low confidence level. Therefore hypothesis isn’t accepted. We can
also see that the Pearson Correlation Coefficient is 0.023 which
shows slightly +ive correlation. This means that the possibility of
repurchase from a store somewhat depends upon the recency of
purchase experience and frequency of visit to that store.

Hypothesis Based on Situation Related Factors

Another set of factors that has been found to impact on customer
loyalty consists of situational factors. These factors include task
definition, level of involvement, shopping orientation, and usage
of information. These are manifested in the task definition by the
shopper and his involvement with shopping. These indicate the
intensity of need and the comfort of the shopper in taking a
purchase decision. The store choice has been found to depend on
buying situations that differ with the level of involvement.
Shopping orientation correlates differently with the information
mix elements. The relative importance of the information sources
differs by the level of product specific buying experiences. Thus,
a consumer segment identified as using a highly complex
cognitive process of decision-making for a product could exhibit
significant deviations for the same product at a different store
(Kline and Wagner, 1994). From above the following hypotheses
are formulated:

32 Business
Research (DIAS)
 Hypothesis 6:
The importance of information sources in retail
differs by level of product specific buying
experiences.

Source of Product buying

information experience
Source of Information Pearson Correlation 1 .073
Sig. (2-tailed) .468
N 100 100
Product Buying Experience Pearson Correlation .073 1
Sig. (2-tailed) .468
N 100 100
From the above table we can see that the significance level is
0.468 which is again very low significance level. This shows low
confidence level. Therefore hypothesis isn’t accepted. We can
also see that the Pearson correlation coefficient is 0.073 which
means that there is a slight correlation between the information
sources in a retail store and the product buying experiences.

Hypothesis Based on Store Satisfaction

Satisfaction has often been regarded as an antecedent of store
loyalty (Bitner, 1990). Store satisfaction can be defined (Engel et
al., 1990, p. 481) as: The outcome of the subjective evaluation,
that the chosen alternative (the store) meets or exceeds
expectations. This definition is within the tradition of
conceptualizations of satisfaction that are used in the product
literature. The basis for the definition forms the disconfirmation
paradigm (Oliver, 1980). According to this paradigm, satisfaction
is believed to occur through a matching of expectations and
perceived performance. In case a consumer makes this
comparison, he or she elaborates on the evaluation of a store. In
order to do so, a consumer must both have the motivation and the
ability to evaluate the store relative to the reference point
employed (Petty et al., 1983).

33 Business
Research (DIAS)
 However, in some cases it may be very hard for consumers to
generate expectations to evaluate store performance and to
compare the expectations and performance as if they were
independent elements. However, to the extent that an explicit
comparison is made between expectations and performance, the
consumer is likely to be aware of the outcome of this evaluation.
We label it as manifest satisfaction. Manifest satisfaction is the
result of an evaluation, which is well elaborated on.

Hypothesis 7:
The degree of loyalty to a particular store differs
with the satisfaction level of customers.

Overall Is a loyal patron

satisfaction level of this store brand
Overall satisfaction level Pearson Correlation
1 .231*
Sig. (2-tailed) .021
N 100 100
is a loyal patron of this store Pearson Correlation .231* 1
brand
Sig. (2-tailed) .021
N 100 100
*. Correlation is significant at the 0.05 level (2-tailed).

From the above table we can see that the significance level is
0.021 which is highly significant. This shows high confidence
level. Thus the hypothesis is accepted. We can also see that the
Pearson Correlation Coefficient is 0.231 which means there is
somewhat relation between the degree of loyalty of customer to a
particular store and the satisfaction level of customers.

Hypothesis Based on Store image

The image of store is found to drive loyalty. The more positive the
store image, the greater is the degree of loyalty. Several studies
report direct linkages between store image and intensity of store
loyalty (Kunkel and Berry, 1968; Korgaonkar, Lund and Price,
1985; and Reynolds, Darden and Martin, 1974). Store image
reflects shoppers’ perception of a store in terms of functional and
psychological attributes. These can also be classified as tangible
and intangible attributes. The tangible attributes of the store, such
34 Business
Research (DIAS)
 as merchandise, location, sales people, and displays, are explicit
and observable. The intangible aspects, such as ambience, co-
shoppers and other psychosocial factors are difficult to measure
and hence manage (Martineau). The retail literature also discusses
the congruence between self-image and store image. Studies show
that this congruence leads to loyalty. Shoppers select cues from
the store environment and draw inferences about the
characteristics of a typical shopper of the store (Joseph, Grewal
and Mangleburg, 2000). The tenant mix also affects the store
image. Malls, which anchor stores tend to, absorb the image of
the store. A mall with a department store as an anchor reflects an
image of high quality merchandise and customer service. A mall a
price format store as an anchor has an image of a low service mall
(Kirkup and Mohammad, 1994). It has also been found that
shopping at an upscale mall is more likely to create high level of
self-congruity. Shoppers belonging to high economic strata are
more likely to perceive stores housed in downscale mall to have a
lower quality image (Chebal, J., M.J. Sirgy and V. St-James,
2006). The study propounds that store image should be seen as a
result of an interaction between the mall image, socio-economic
status of shoppers, and store type.

The Relationship between Image, Satisfaction and

Loyalty
In our view, manifest satisfaction is directly and unequivocally
related to store loyalty. Manifest store satisfaction means that an
explicit evaluation of the store is made, which in case of a
positive evaluation leads to store commitment. So, manifest
satisfaction will be positively related to store loyalty. Latent
satisfaction is the result of an implicit evaluation of the store
choice, which is not elaborated on and of which the consumer is
not fully aware. Latent satisfaction means mere acceptance of the
store, which will not necessarily lead to commitment.
Nevertheless, latent satisfaction may also be positively related to
store loyalty, but less strongly than manifest satisfaction.
Therefore, hypothesis 61 can be formulated as follows:

The fact that the amount of consumer satisfaction and store

loyalty in general are positively related, as we expect, is hardly
supported by the literature. Although a number of studies address
35 Business
Research (DIAS)
 the relationship between satisfaction and loyalty as related to
products and services (Bloemer and Lemmink, 1992; Bloemer
and Kasper, 1995; Garfein, 1987; Kasper, 1988; Kraft et al.,
1973), there is little empirical evidence to support the explicit
relationship between store satisfaction and store loyalty (Hummel
and Savitt, 1988).

Customers’ patronage behaviour towards a particular store is

dependent on their image of that particular store (Osman, 1993).
The more favourable the store image, the higher the valence of
the store to the customer. However, the exact relationship between
store image and store loyalty has remained inconclusive. There is
both evidence for a direct relationship and an indirect relationship
whereby store satisfaction acts as a mediator (Doyle and Fenwick,
1974; Houston and Nevin, 1981; Lindquist, 1974; Stanley and
Sewall, 1976).

Data Analysis
Price of the items
Frequency Percent Cumulative Percent
Very
1 1.0 1.0
Dissatisfied
Dissatisfied 16 16.0 17.0
Moderate 28 28.0 45.0
Satisfied 44 44.0 89.0
Very Satisfied 11 11.0 100.0
Total 100 100.0

36 Business
Research (DIAS)
 Store ambience

Frequency Percent Cumulative Percent

Dissatisfied 11 11.0 11.0
Moderate 17 17.0 28.0
Satisfied 52 52.0 80.0
Very Satisfied 20 20.0 100.0
Total 100 100.0

37 Business
Research (DIAS)
 Ease of availaibilty

Frequency Percent Cumulative Percent

Dissatisfied 11 11.0 11.0
Moderate 27 27.0 38.0
Satisfied 40 40.0 78.0
Very Satisfied 22 22.0 100.0
Total 100 100.0

38 Business
Research (DIAS)
 Sales Promotion Offers

Frequency Percent Cumulative Percent

Very dissatisfied 12 12.0 12.0
Dissatisfied 33 33.0 45.0
Moderate 28 28.0 73.0
Satisfied 23 23.0 96.0
Very Satisfied 4 4.0 100.0
Total 100 100.0

39 Business
Research (DIAS)
 Ambience would be an important factor

Frequency Percent Cumulative Percent

Not at all 10 10.0 10.0
Weak 27 27.0 37.0
Moderate 26 26.0 63.0
Strongly 10 10.0 73.0
Very Strongly 27 27.0 100.0
Total 100 100.0

40 Business
Research (DIAS)
 Convenience would be given special attention
Frequency Percent Cumulative Percent
Not at all 6 6.0 6.0
Weak 20 20.0 26.0
Moderate 20 20.0 46.0
Strongly 34 34.0 80.0
Very Strongly 20 20.0 100.0
Total 100 100.0

41 Business
Research (DIAS)
 Word of mouth is important

Frequency Percent Cumulative Percent

Not at all 6 6.0 6.0
Weak 14 14.0 20.0
Moderate 48 48.0 68.0
Strongly 24 24.0 92.0
Very Strongly 8 8.0 100.0
Total 100 100.0

42 Business
Research (DIAS)
 Consideration to Rebate and Discounts on Purchase

Frequency Percent Cumulative Percent

Not at all 7 7.0 7.0
Weak 22 22.0 29.0
Moderate 16 16.0 45.0
Strongly 21 21.0 66.0
Very Strongly 34 34.0 100.0
Total 100 100.0

43 Business
Research (DIAS)
 CONSUMER PULL FACTORS
 A critical factor in Westside’s success has been its strategy
to attract shoppers & keep them in stores- the amount of
time shoppers spend in a store is perhaps the single most
important factor in determining how much they will buy.
In having understood the pulse of the customers in India,
Westside has clearly established itself as a brand with an
Indian heart.
 Over the years Westside has also developed and
successfully introduced a range of new brands especially
suited to the Indian palate. These brands like 2F 4U have
been a tremendous success amongst the new generation.
44 Business
Research (DIAS)
 What has also given Westside a competitive edge is that in
addition to an extensive range of internationally renowned
brands like Spykar, Lee and Fast Track they also offer the
option of a less known brands for low budget customers.
 All the three floors are carefully structured. Ist floor and
IInd floor caters exclusively to Women and Men
respectively. Thus giving them privacy and more freedom
to look into their products.
 Women’s need more space and look for comfort. They are
less likely to buy if the place is congested and makes them
feel uncomfortable. At Westside sofas have been placed in
the women section so as to make the females more
comfortable.
 Westside has been able to create a brand image and is
consistently maintaining its brand identity by new
additions in products and catering to the market need.
 They are catering to different age groups under one roof.
For ex. On the IInd floor which is men’s section both
formal and college wear is available. This way they are
able to build a huge customer loyal base.
 Westside caters to not only the clothing needs and desires
of its customers. They have bed sheets, kitchenware,
jewellery, perfumes, baby products, household items, etc.
This way a customer who enters Westside just to buy one
or two items usually ends up buying a lot more.
 The in-store experience in Westside is very delightful.
Their fully skilled and trained staff caters to the needs of
the public in the right way. They don’t pounce upon the
customer as soon as he enters the store. They wait till the
time a customer starts selecting and then they come and
help. This way the customer gets acclimatize with the
store and the environment.
 Price of brands available at Westside is not too high as
compared to its competitor’s brands. This is due to their
cost effective supply chain management. They directly
pick up the goods from the manufacturer thus ensuring
low price tag at their store.

45 Business
Research (DIAS)
 Recommendations

• To increase more footfalls more promotional activities

must be carried out. For this Westside can either offer
more discounts or increase their advertisements. Increase
in the number of footfalls will lead to increase in sales.
• Since Westside is not only catering to apparel need of the
society a few additions like Books, Music items,
Electronic gadgets etc can also be added to the products
available inside their store. The demand for the above
products is always in the market.
• Allowing more space between the entrance of a store and
a product gives it more time in the shopper’s eye as he or
she approaches it. It builds a little visual anticipation.
• The number of trial rooms available at Westside is very
less as compared to the number of people coming. This
usually results in long queues and waiting by customers.
• Install more full length mirrors inside the store so as to
assist the customers to make better purchase decisions.
• Play light music inside the store to make the shopping a
pleasurable experience.
• They can also exhibit their new line of clothing through
events like fashion shows.
• Baskets should be scattered throughout the store, wherever
shoppers might need them. Many customers don’t begin
seriously considering merchandise until they have
browsed a bit.

46 Business
Research (DIAS)
 Limitations
This research has a number of limitations that must be
acknowledged.

• First, the sample used for this study consisted mostly of

college students. Therefore, these results may not be
applicable to the wider population in general.
• Secondly, the results of this study are limited to a specialty
retail branded purchasing context.
• Lastly, it must be acknowledged that there may be
numerous other variables that contribute to the
development of customer satisfaction, customer loyalty,
and word of mouth communication which are briefly
touched upon below.

All of the hypotheses in the study were supported by the data. The
hypothesis test results indicated that both utilitarian and hedonic
shopping benefits have a positive effect on customer satisfaction.
The results also indicate that customer repurchase is positively
associated with customer loyalty and word of mouth
communication.

There are studies which have contributed for extending the

consumer benefit/loyalty framework to the retail branding
context. Customer satisfaction is an antecedent of word of mouth
communication, but customer loyalty (favorable relative attitude)
must be present to mediate the relationship. This finding is
important for theory building in this and other marketing and
consumer contexts.

In the increasingly competitive environment faced by today's

retailers, the pursuit of consumer loyalty is paramount. In order to
47 Business
Research (DIAS)
 be competitive, retailers must identify the key ingredients of
consumer loyalty and the relationships between the benefits
delivered to the consumer and important outcomes (i.e.
satisfaction, loyalty, word of mouth communication).

This study doesn’t identify two types of benefits mostly desired

by the consumer: utilitarian and hedonic. Retailers should
understand this if they expect to provide utilitarian benefits to
consumers by way of having the right product on hand at the right
place and time. In addition, they must recognize that the
consumer also desires a hedonic benefit in terms of the shopping
experience. The results of this study doesn’t indicate that
consumers expect the purchase experience to offer hedonic
qualities such as excitement, entertainment, escapism, fantasy,
and fun. Retailers that utilize the store-as-the-brand strategy
should recognize this and work to deliver hedonic value
throughout the purchase experience. In addition, retailers should
recognize that their performance in the delivery of these
consumer benefits is linked to important outcomes such as
satisfaction, loyalty, and word of mouth communication.

Another important finding not undertaken in this study indicates

that consumer satisfaction is linked to attitudinal loyalty.
Although one could argue that other variables not examined in
this study contribute equally to attitudinal loyalty, satisfaction
appears to be an important antecedent. Therefore, retailers should
recognize that in order to create a loyal customer base, they must
satisfy the desires and needs of the consumer. One way that
retailers can provide satisfaction to the consumer is through the
delivery of value in the form of utilitarian and hedonic benefits
associated with the purchase experience. Retailers should
recognize that they must meet or exceed the consumer's
expectations in terms of the benefits the consumer is seeking. It is
also important for retailers to understand the link between
satisfaction and other important outcome variables (i.e. attitudinal
loyalty, word of mouth communication) because satisfaction
contributes to these outcomes.

The finding of this study doesn’t talk about the attitudinal loyalty
which serves as a mediator between consumer satisfaction and
consumer word of mouth communication. It is reasonable that
48 Business
Research (DIAS)
 attitudinal loyalty would mediate the relationship between these
constructs because it is a more enduring concept when compared
to consumer satisfaction. In their pursuit of customer loyalty, it is
important for retailers to understand this relationship and the
associated implications. Delivering a satisfying purchase
experience can lead to attitudinal loyalty, and in turn, that
attitudinal loyalty can lead to the consumer engaging in word of
mouth communication about the retail store brand.

The extant body of literature on the consumer benefits/loyalty

framework is in an early stage of development. The primary goal
for future research should be to identify and examine the various
types of consumer benefits that influence consumers' satisfaction,
loyalty, and word of mouth communication. In-depth qualitative
research in the form of personal interviews and focus groups
would provide a better understanding of the benefits desired by
consumers. This qualitative research would, in turn, contribute to
the development of better measures to capture each type of
benefit. In turn, it is important to continue to examine the
relationships between consumer benefits and outcome variables
that are crucial to the success of the retail firm (e.g. customer
satisfaction, customer loyalty, and word of mouth
communication). A particularly important area of investigation is
the role of attitudinal loyalty as a mediator between customer
satisfaction and word of mouth communication.

Future research should also focus on replicating this study with a

different target respondent. A large survey of consumers of
various backgrounds in various geographic areas could help to
make the findings of this study more generalizable to the overall
population.

Bibliography

CII Report on Retail 2008,

Journals from www.emeraldinsight.com

www.scribd.com

49 Business
Research (DIAS)
 www.esnips.com

www.wikipedia.org

Search engine used www.google.com

www.mywestside.com

Suggestions from Why We Buy? By Paco Underhill

www.retailinsights.com

Baker, J., D. Grewal, and Levy 1992, ‘ An Experimental Approach to

Making Retail Store Environment Decisions’, Journal of Retailing, Vol.
68, Winter, pp.445-60

Baker, J., D. Grewal, and A. Parasuraman and B. Glenn 2002, ‘The

Influence of Multi-Store Environmental Clues on Perceived
Merchandise Value and Patronage Intentions’, Journal of Marketing,
Vol.66, April, pp. 120-41.

Bell, David R., Tech-Hua Ho, and C.S. Tang 1998, ‘Determining Where
to Shop: Fixed and Variable Cost of Shopping’, Journal of Marketing
Research, Vol. 35, August, pp. 352-69.

Bellenger, Danny N. 1980, ‘Shopping Center Patronage Motives’,

Journal of Retailing, Vol. 53, April, pp 29-38.

Bitner, M.J. (1990), ‘Evaluating Service Encounters: The Effects of

Physical Surroundings and Employee Responses’, Journal of
Marketing, Vol. 54, pp. 69-82.

Black, William C. 1984, ‘Choice-set Definition in Patronage Modeling’,

Journal of Retailing, Vol. 60, No. 2, Summer, pp. 63-85.

QUESTIONNAIRE

Dear Respondent,

50 Business
Research (DIAS)
 I am a student of Delhi Institute of Advance Studies, Delhi and doing a
research for a study for which I intend to pose a questionnaire aimed at
analyzing the Impact of shopper, store & situational factors on store
image, satisfaction and loyalty of customers.
Your cooperation is deeply solicited to provide the relevant information. I
assure that information will be kept confidential.
Name of Customer _______________ Mobile
No.______________

Please tick at the place that matches your opinion.

A. Details

1. Through which source did you come to know about this retail
outlet?

Advertisements
(Media)
Friends/Relatives
Company Outlet
2. Internet

2. How strongly would you consider the factors while opting for a
particular retail outlet?

1- Very Strongly 2- Strongly 3- Agree 4-

Not at all

Statement 1 2 3 4
A Availability of Literatures/Brochures
b. Ambience would be an important factor
c. I would give special attention to convenience and location
d. I would give special consideration to the product range
e Degree of differentiation in type and quality of products is important
f. I would give special consideration to uniqueness of assortments
available in a store
g I would give special consideration to rebate and discounts on purchase
h. For me salesperson services would be an important consideration
i For me Word of Mouth is important
J Advice of friends and relatives influence my Visit Decision
k. Handling Product related Queries
l Customer Grievance cell
51 Business
Research (DIAS)
 B. Salesperson Services

3. Are the salesperson (Rate the salesperson services according to

you from 1 to 5, where 5 is extremely good and 1 is extremely
bad)|

Statement 1 2 3 4 5
a. Easily approachable
b. Humble and Soft Spoken 1 2 3 4 5
c. Able to provide Complete solution
to your problems Rate
d. Initiative of salesman to solve the Overall
problem salesperson
Services

4. How do you perceive quality of service provided by your retail

outlet (Using Semantic Scale 1-7, 1 being the lowest, 7 being the
highest)

7 1

RELIABLE
UNRELIABLE
CUSTOMER FRIENDLY HOSTILE
PROACTIVE REACTIVE

52 Business
Research (DIAS)
 C. Retail outlet factors

5. How far are you satisfied with the following factors for your retail
outlet?

1- Very Dissatisfied 2- Dissatisfied 3- Satisfied 4- Very

Satisfied

6. Overall – how much are you satisfied with the service of your
retail outlet?
Statement 1 2 3 4
a. Price of the items
b. Convenience in approach
c. Assortment
d. Extra services provided
e. Home delivery service
f. Transparency In Billing
g. Ease of availability
h. Sales person Services
i. Sales Promotion Offers
j. Advertisement
k. Store Ambience
l. Overall Satisfaction Level

53 Business
Research (DIAS)
 Extremely Satisfied Moderately Moderately Dissatisfied Extremely
Satisfied Satisfied Dissatisfied Dissatisfied

If Not Satisfied, Specify Reason(s)?

7. Have you faced any problem with your store? ___________

If yes, what type of problem you faced?
Quality of products
After sales service
Assortment size
Employee behavior
Any Other (Specify) __________________________

D. Future relationship

8. Rank the following from 1 to 4 where

1- Strongly Disagree 2- Disagree 3- Agree 4- Strongly Agree

Statement 1 2 3 4
A Consider buying from this store
B Increase the purchase from this sectors

E. Trust

9. Rank the following from 1 to 4 where

1- Strongly Disagree 2- Disagree 3- Agree 4- Strongly Agree

54 Business
Research (DIAS)
 Statement 1 2 3 4
A Find products reliability
B I trust the services by the store

F. Commitment level
10. Rank the following from 1 to 4 where
1- Strongly Disagree 2- Disagree 3- Agree 4-
Strongly Agree
Statement 1 2 3 4
A I am proud to be a customer of this retail outlet.
B Company gets feedback from me from time to time.
C I am a loyal patron of this company.

G. Customer’s profile (kindly tick the suitable box)

11. Age 12. Occupation:

< 18 years Student Professional
18 –25 years Private Employee Self Employed
25 – 40 years Government Employee
40 above Other (Please
Mention)________________________

13. Gender 14. Education 15. Disposable Income

(p.m.)

Male Matriculation < Rs. 5,000

female Senior Rs. 5,001- Rs. 10,000

Secondary Rs. 10,001- Rs. 20,000
55 Business
Bachelor Degree
Research (DIAS) Rs. 20,000 plus
PG Degree
 16. No. of times visiting the retail outlet per week

Less than once

1-2 times

2-4 times

More than 4 times

(Thanks for Co-

operation)

56 Business
Research (DIAS)