Jour of Adv Research in Dynamical & Control Systems, 05-Special Issue, July 2017

A Study on Customers Satisfaction towards

Public Distribution System
Dr.R. Velmurugan, Associate Professor, Commerce, Karpagam University, Karpagam Academy of Higher Education,
Coimbatore. E-mail:drvelsngm@gmail.com
D. Lavanya, Ph.D. Research Scholar, Commerce, Karpagam University, Karpagam Academy of Higher Education, Coimbatore.
E-mail:lavanmithu@gmail.com
Abstract--- Customer’s intensity of purchase at fair price shops depends on the quality of services extended at fair
price shops. The purpose of setting-up Public Distribution System will be nullified, unless real beneficiaries have
not utilized the products offered at fair price shops optimally. Unless, customers are satisfied with regard to services
offered at fair price shops, they may not make use of service of fair price shops to a maximum extent. Thus, in this
study a serious attempt has been made to identify the factor that enhances customer’s satisfaction. The study has
been carried at Coimbatore District of Tamilnadu. By adopting convenient sampling, feedback obtained from 900
card holders. The collected data are analyzed through Chi-square test. Result of study disclose that customer
satisfaction which is associated with age, occupation, family income, family expenditure, possibility of obtaining
goods all over the month, accuracy in weight on goods distributed etc.
Keywords--- Public Distribution System, Customer’s Satisfaction.

I. Introduction
In India, Government intervention within the functioning of Public Distribution System (PDS) is started during
the inter war period, 1940. PDS is mainly established for the provision of food security to the weaker sections in the
country, by distributing essential goods at an affordable price. With the intention to disburse essential commodities
to the weaker sections properly, Government of India has established Ministry of Consumer Affairs, Food and
Public Distribution to efficiently manage and distribute food grains. In India, planning commission estimates the
number of below poverty line households and extends the necessary assistance to food and public distribution
department for distributing the essential commodities to the poor masses. But the main motto of establishing fair
price shops have not been fulfilled, as essential commodities are liberally diverted in open market than distributing
to the beneficiaries. In order to contain misutilization, Government implemented numerous steps. Such steps would
include detection of counterfeit cards, introduction of electronic weighing machine and electronic billing machines,
criminal actions against culprits, GPS for tracking the movement of commodities from TNCSC go downs to fair
price shops and the web camera facility to ascertain the functioning of the FPS and the physical presence of the
salesman. A technology-based reform of the targeted public distribution system has also been implemented by
states. Even though measures taken, still the beneficiaries are not fully satisfied due to the difficulties encountered to
obtained the family cards, improper quantity and quality allocation of PDS goods, frequent smuggling of large
quantities of PDS commodities, irregular shop functioning, inability of the poorest to access PDS commodities, lack
of community monitoring and rampant corruption at various levels by the implementing agencies. Thus, an attempt
has been made to ascertain the level of satisfaction of card holders and factors influencing their satisfaction.

II. Review of Literature

Arumugam Mahendran and Sulibhavi Indrakant (2014) in their study reveal that the poor people are satisfied
with the PDS, as they meet their private needs. Further, they also pointed out that rural coastal people’s lifestyle has
been improved better due to the distribution of free rice, color TVs, fans, mixer grinders, etc., Ashok Kumar and
Naveena (2014) in their study revealed that the consumers are not satisfied with regard to distribution of poor quality
of goods at fair price shops. Chandanshiv and Narwade (2014) ascertain that half of the beneficiaries (54 percent)
are not satisfied with regard to quality of the food grains supplied through PDS. Suprit Panigrahi (2014) in his study
reveals that the issue of corruption within the system remains a major reason behind the dissatisfaction of the service
users. Ramesh Kumar (2013) in his study shows that the satisfaction level on PDS services does not differ among
customers based on their income. Government should take necessary steps to improve the quality of services and to
ensure the goods are distributed in time. Rajiv K. Phull (2013) states that there is a common dissatisfaction across
the state that they do not get ration regularly despite visiting the depots many times and the situation in rural areas is
even worse. They have not received sugar supply for the last three months besides pointing towards the poor quality

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of commodities available under Public Distribution System. Vaibhav Ganjapure (2012) in his study found that the
main causes of dissatisfaction among card holders are distribution of poor quality of goods with underweight.
Kumar Parmod (2010) pointed out the performance of PDS at Delhi and Uttarakhand are found satisfactory in terms
of providing food to the poor. Nakkiran (2004) in his study pointed out that the weaker sections are dissatisfied with
regard to quality and quantity of goods distributed in Tamil nadu. Majumder (2001) in his study finds that the
conditions of fair price shops are not found satisfactory. PDS has been failed except in case of kerosene oil in the
whole district. Yashwant Sinha (1991) in his study mentions that the Public Distribution System do not satisfy the
needs of the poor for whom it is intended. lttyerah and Kabra (1990) in their study finds that utilization of rice is
very low and that of sugar is very high. According to them about 80 per cent of the sample households are satisfied
with the Public Distribution System while 20 per cent is not satisfied with regard to functioning of PDS.

III. Statement of the Problem

The main work of Public Distribution System is to deliver goods to ultimate beneficiaries at the right time, right
place, right quality, quantity and at right price. This is possible only with the effective support of both Government
and staff members of PDS. As in private business concerns, staff members at PDS have to initiate necessary steps
for ascertaining the customers grievances and to take suitable steps for redressing their customers grievances, so that
the customers satisfaction may be increased. Thus, in this study an effort has been made on ascertaining the
customer’s level of satisfaction towards the services extended at fair price shops and factors influencing their
satisfaction.

IV. Objective
To ascertain the factors associated with Customer’s Satisfaction from Public Distribution System.

V. Research Methodology
Data
Data required for the study is primary in nature. Primary data have been collected by employing Interview
Schedule.
Area of Study
The present study is confined to the consumers’ who reside in Coimbatore District.
Sample Design
By applying Convenience sampling, 900 consumers have been selected.
Framework of Analysis
The collected data have been analyzed by making use of Chi-square test.
Level of Satisfaction
Consumer’s level of satisfaction towards service offered at public distribution shops has been measured by
assigning the scores to questions relating to satisfaction. Eleven such questions are included in the questionnaire.
Answers to the questions have been rated on a five-point scale. The scores allotted to the answers range from one to
five. Thus, a consumer would get fifty five as a maximum score. Score obtained by each consumer is divided by 55
and multiplied by 100 to convert it into an index. This index is termed as ‘Satisfaction index’. The index ranges
between 20.00 and 100.00 and the grand mean of satisfaction index is 70.79. Based on the satisfaction index, the
consumer’s have been divided into three group as consumers’ with low, moderate and high level of satisfaction. In
order to classify the consumer’s into three such groups, quartiles have been made use of. Accordingly, consumers
with the satisfaction index ranging up to 55.73 are termed as consumers with the low level of satisfaction; those with
the satisfaction index ranging between 55.74 and 85.84 are termed as consumers with moderate level of satisfaction
and those consumers with satisfaction index above 85.84 are termed as consumers with high level of satisfaction.
From the 900 consumers, 131 (14.60) customers are with low level of satisfaction; 635 (70.60) are with moderate
level of satisfaction and the rest 134 (14.90) consumers are with the high level of satisfaction.

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VI. Analysis and Interpretation

The following table illustrates the factors associated with the Consumer’s Satisfaction. Level of Significance
chosen is one per cent level.
Table 1: Factors Associated with the Consumer’s Satisfaction
Level of Satisfaction
Variables High Total χ2 Value
Low (n=131) Moderate (n=635)
(n=134)
Age
Up to 30 35 (15.10) 181 (78.00) 16 (06.90) 232 (100.00) 20.845**
31 to 50 68 (13.20) 350 (67.80) 98 (19.00) 516 (100.00)
Above 50 28 (18.40) 104 (68.40) 20 (13.20) 152 (100.00)
Gender
Male 75 (17.00) 300 (67.90) 67 (15.20) 442 (100.00) 4.402
Female 56 (12.20) 335 (73.10) 67 (14.60) 458 (100.00)
Educational Qualification
Illiterate 41 (16.20) 166 (65.60) 46 (18.20) 253 (100.00) 18.566
Up to H.Sc., 35 (10.80) 242 (74.50) 48 (14.80) 325 (100.00)
Diploma 6 (23.10) 18 (69.20) 2 (07.70) 26 (100.00)
Under Graduate 29 (17.70) 111 (67.70) 24 (14.60) 164 (100.00)
Post Graduate 11 (19.00) 39 (67.20) 8 (13.80) 58 (100.00)
Professional 4 (07.80) 41 (80.40) 6 (11.80) 51 (100.00)
Others 5 (21.70) 18 (78.30) 0 (00.00) 23 (100.00)
Occupation
Agriculturists 37 (23.70) 96 (61.50) 23 (14.70) 156 (100.00) 26.949**
Business 4 (06.50) 52 (83.90) 6 (09.70) 62 (100.00)
Self Employed 16 (11.20) 105 (73.40) 22 (15.40) 143 (100.00)
Home Maker 18 (08.20) 165 (75.30) 36 (16.40) 219 (100.00)
Salaried 56 (17.50) 217 (67.80) 47 (14.70) 320 (100.00)
Monthly Income (Rs.)
Up to 5000 39 (12.40) 222 (70.50) 54 (17.10) 315 (100.00) 4.700
5001 to 10000 43 (14.10) 218 (71.50) 44 (14.40) 305 (100.00)
Above 10000 49 (17.50) 195 (69.60) 36 (12.90) 280 (100.00)
Family Income (Rs.)
Up to 15000 70 (13.40) 356 (68.10) 97 (18.50) 523 (100.00) 14.964**
15001 to 30000 37 (14.80) 186 (74.40) 27 (10.80) 250 (100.00)
Above 30000 24 (18.90) 93 (73.20) 10 (07.90) 127 (100.00)
Family Expenditure (Rs.)
Up to 10000 73 (12.90) 392 (69.00) 103 (18.10) 568 (100.00) 32.133**
10001 to 20000 28 (12.10) 178 (77.10) 25 (10.80) 231 (100.00)
Above 20000 30 (29.70) 65 (64.40) 6 (05.90) 101 (100.00)
Total Family Members
Up to Three 58 (14.90) 261 (67.30) 69 (17.80) 388 (100.00) 5.396
Four 54 (14.80) 263 (72.30) 47 (12.90) 364 (100.00)
Above Four 19 (12.80) 111 (75.00) 18 (12.20) 148 (100.00)
Type of Family
Joint 19 (11.90) 119 (74.40) 22 (13.80) 160 (100.00) 1.532
Nuclear 112 (15.10) 516 (69.70) 112 (15.10) 740 (100.00)
Status in Family
Head 52 (13.70) 265 (69.90) 62 (16.40) 379 (100.00) 1.301
Member 79 (15.20) 370 (71.00) 72 (13.80) 521 (100.00)
Type of Card
Green 125 (15.10) 573 (69.30) 129 (15.60) 827 (100.00) 8.820
White 6 (09.10) 55 (83.30) 5 (7.60) 66 (100.00)
Khakhi 0 (00.00) 7 (100.00) 0 (00.00) 7 (100.00)
Possible to Obtain Goods from PDS in all Months
Yes 58 (10.50) 387 (70.20) 106 (19.20) 551 (100.00) 33.918**
No 73 (20.90) 248 (71.10) 28 (08.00) 349 (100.00)
Damage in Packing
Yes 88 (22.70) 262 (67.50) 38 (09.80) 388 (100.00) 43.711**
No 43 (08.40) 373 (72.90) 96 (18.80) 512 (100.00)
Accurate Weight of Goods
Yes 54 (09.50) 393 (69.20) 121 (21.30) 568 (100.00) 69.913**
No 77 (23.20) 242 (72.90) 13 (03.90) 332 (100.00)

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Adequate Staffs are Employed at PDS

Yes 68 (11.50) 402 (67.90) 122 (20.60) 592 (100.00) 50.920**
No 63 (20.50) 233 (75.60) 12 (03.90) 308 (100.00)
Time Spent on PDS (Hrs.)
Up to One 65 (12.90) 363 (72.30) 74 (14.70) 502 (100.00) 3.708
Two 41 (15.30) 185 (69.00) 42 (15.70) 268 (100.00)
Above Two 25 (19.20) 87 (66.90) 18 (13.80) 130 (100.00)
PDS Located at Easily Accessible Place
Yes 88 (12.70) 486 (70.10) 119 (17.20) 693 (100.00) 17.763**
No 43 (20.80) 149 (72.00) 15 (07.20) 207 (100.00)
Working Hours
Up to Six 75 (17.70) 298 (70.30) 51 (12.00) 424 (100.00) 9.821**
Above Six 56 (11.80) 337 (70.80) 83 (17.40) 476 (100.00)
Distribution of all Variety of Goods
Yes 55 (12.00) 306 (66.80) 97 (21.20) 458 (100.00) 30.790**
No 76 (17.20) 329 (74.40) 37 (08.40) 442 (100.00)
Goods Supplied in Time
Yes 50 (11.30) 279 (63.30) 112 (25.40) 441 (100.00) 76.791**
No 81 (17.60) 356 (77.60) 22 (04.80) 459 (100.00)
Display of Stock Details
Yes 72 (12.30) 401 (68.80) 110 (18.90) 583 (100.00) 23.871
No 59 (18.60) 234 (73.80) 24 (07.60) 317 (100.00)
Goods Fit for Consumption
Yes 60 (09.90) 425 (70.40) 119 (19.70) 604 (100.00) 55.535**
No 71 (24.00) 210 (70.90) 15 (05.10) 296 (100.00)
PDS function on All Sundays
Yes 45 (15.30) 189 (64.30) 60 (20.40) 294 (100.00) 11.535**
No 86 (14.20) 446 (73.60) 74 (12.20) 606 (100.00)
PDS Open in Time
Yes 53 (10.30) 353 (68.80) 107 (20.90) 513 (100.00) 43.687**
No 78 (20.20) 282 (72.90) 27 (07.00) 387 (100.00)
Liberty to Buy Goods
Yes 45 (09.60) 310 (66.10) 114 (24.30) 469 (100.00) 77.661**
No 86 (20.00) 325 (75.40) 20 (04.60) 431 (100.00)
Distribution of New Products
Yes 74 (12.70) 422 (72.50) 86 (14.80) 582 (100.00) 4.739
No 57 (17.90) 213 (67.00) 48 (15.10) 318 (100.00)
Proper Employee Response for Queries Raised
Yes 47 (08.90) 367 (69.20) 116 (21.90) 530 (100.00) 71.368**
No 84 (22.70) 268 (72.40) 18 (04.90) 370 (100.00)
Customer Friendly Employees
Yes 39 (08.30) 317 (67.60) 113 (24.10) 469 (100.00) 83.152**
No 92 (21.30) 318 (73.80) 21 (04.90) 431 (100.00)
Level of Problem
Low 27 (19.57) 77 (55.80) 34 (24.64) 138 (100.00) 46.816**
Moderate 74 (12.07) 475 (77.49) 64 (10.44) 613 (100.00)
High 30 (20.13) 83 (55.70) 36 (24.16) 149 (100.00)
* Significant at one per cent level
• Consumers whose age ranges between 31 and 50 years have high level of satisfaction and Consumers who
are above the age of 50 years have low level of satisfaction.
• Homemakers have high level of Satisfaction and agriculturists have low level of Satisfaction.
• Consumers whose family income ranges up to Rs.15,000/- have high level of satisfaction and Consumers
whose family ranges above Rs. 30,000/- have low level of satisfaction.
• Consumers whose family expenditure ranges up to Rs. 10,000/- have high level of satisfaction and
Consumers whose family expenditure ranges above Rs. 20,000/- have a low level of satisfaction.
• Cardholders who agree that it is possible to obtain goods from PDS in all months, have a high level of
satisfaction. Cardholders who agree that it is not possible to obtain goods from PDS in all months, have a
low level of satisfaction.
• Cardholders who disagree that product packages are damagd at PDS have high level of satisfaction.
Cardholders who agree that product package is damaged at PDS, have a low level of satisfaction.

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• Cardholders who agree that the products distributed at PDS are with accurate weight, have a high level of
satisfaction. Cardholders who disagree that the products distributed at PDS are with accurate weight, have a
low level of satisfaction.
• Cardholders who agree that the adequate staffs are employed at PDS have a high level of satisfaction.
Cardholders who disagree that the adequate staffs are employed at PDS, have a low level of satisfaction.
• Cardholders who agree that the PDS shops are located at easily accessible place, have a high level of
satisfaction. Cardholders who disagree that the PDS shops are located at easily accessible places, have a low
level of satisfaction.
• Cardholders who agree that the PDS shops function more than six hours in a day, have a high level of
satisfaction. Cardholders who agree that the PDS shops function only up to six hours in a day, have a low
level of satisfaction.
• Cardholders who agree that all variety of goods are distributed at PDS shops, have a high level of
satisfaction. Cardholders who disagree that all variety of goods are distributed at PDS shops, have a low
level of satisfaction.
• Cardholders who agree that the goods are supplied in time at PDS shops are with a high level of satisfaction.
Cardholders who disagree that the goods are supplied in time at PDS shops are with a low level of
satisfaction.
• Cardholders who agree that the goods supplied at PDS shops are fit for consumption have a high level of
satisfaction. Cardholders who disagree that the goods supplied at PDS shops are fit for consumption have a
low level of satisfaction.
• Cardholders who agree that the PDS shops function on all the Sundays are with a high level of satisfaction.
• Cardholders who agree that the PDS shops are open in time are with a high level of satisfaction. Cardholders
who disagree that the PDS shops are not open in time are with a low level of satisfaction.
• Cardholders who agree that they have a liberty to buy goods in the PDS shops are with a high level of
satisfaction. Cardholders who disagree that they have a liberty to buy goods in PDS shops, are with a low
level of satisfaction.
• Cardholders who agree that the employee properly responded for the queries raised are with a high level of
satisfaction. Cardholders who disagree that the employee properly responded for the queries raised are with
a low level of satisfaction.
• Cardholders who agree that the PDS employees are customer friendly, are with a high level of satisfaction.
Cardholders who disagre that the PDS employees are customer friendly are with a low level of satisfaction.
• Cardholders who perceive low level of problem exists at PDS are with a high level of satisfaction.
Cardholders who perceive a high level of problem exists at PDS are with the low level of satisfaction.
Suggestions
Based on the findings of the study, the following suggestions have been offered.
• Age old consumers may not in a position to stand for long time for availing the PDS goods. Hence, it is
advised to PDS staff members to give first preference to age old consumers on goods disbursement, thereby
their satisfaction level may be improved.
• Functioning of the PDS shops at rural area is found irregular. Further, the PDS shops are not opened in time.
Thus, the rural people as well as agriculturists found difficult in obtaining goods on time. Hence, it is
suggested that the Government officials of Co-operative department should have a surprise visit to the fair
price shops located at rural areas to verify that the PDS shops are opened regularly on time and goods are
properly distributed to beneficiaries.
• Mostly the consumers with low income group prefer to purchase goods from fair price shops, even though
the goods distributed are of inferior quality. Whereas, the consumers with above poverty line commonly
avoid purchasing goods at fair price shops, as goods distributed at fair price shops are of inferior quality or
not up to their expectations. Therefore, in order make wealthy persons to utilize the PDS facilities, quality of
the goods distributed at ration shops may be improved with the intention to improve the satisfaction level
among the beneficiaries.
• Beneficiaries are not possible to obtain goods from the PDS in all months, as PDS goods are diverted in
open market. Thus, the stringent measures have to be taken against the politicians and PDS staff members,
who indulge in black marketing activities in order that public may obtain goods all over the month.

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• Cardholders who agree that the product package is damaged at PDS, have a low level of satisfaction. In
order to avoid the deteriorate in quality of goods, necessary steps have to be initiated by the Food
Corporation of India and to avoid damage of goods in transit.
• In rural areas few of the fair price shops function only half-a-day due to the paucity of staff members.
Moreover, the delay in disbursement of goods in PDS is also due to the shortage of staff members at PDS
shops. Hence, the Government has to initiate necessary steps to fill the vacant position at ration shops in
order to run the fair prices shops on full time basis and to disburse goods to the ultimate consumers without
wasting their valuable time.
• Fair price shops are to be located at a place, which are easily accessible to consumers, so that they may avail
goods to a maximum extent.
• Cardholders who agree that the PDS shops function only up to six hours in a day, have a low level of
satisfaction. PDS supervising authorities like Deputy Registrar of Co-operatives and Co-operative Sub
Registrars have to make the surprise visits to ration shops and advise the staff members to kept shop open
minimum of eight hours in a day.
• Cardholders who disagree that variety of goods are distributed at PDS shops, have a low level of
satisfaction. Hence, the Civil Supply Corporation has to instigate necessary action plan to distribute more
variety of goods at nominal cost to the beneficiaries.
• Cardholders who are of the opinion that goods are not supplied on time at PDS shops have a low level of
satisfaction. Hence, staff members at fair price shops should not make prolonged time in distributing goods
to ultimate beneficiaries, so that the satisfaction level of consumers may be enhanced.
• Cardholders who feel that the goods supplied at the PDS shops are not fit for consumption are with a low
level of satisfaction. Therefore, the Government officials have to take required steps to disburse the goods to
the ultimate consumers as soon as the goods are procured. Further, the storage facility at ration shops may
be improved in order to avoid the spoilage of the essential goods.
• Cardholders who disagree that the PDS shops are open on time, are with a low level of satisfaction. In order
to raise their satisfaction level, the PDS staff members should maintain punctuality in opening the PDS
shops.
• Cardholders who are in the opinion that the PDS officials compel them to purchase unwanted goods, have a
low level of satisfaction. Hence, the PDS officials should not force the consumers to buy unwanted goods.
• Cardholders who are in the opinion that the employee, have not properly responded for the queries raised are
with a low level of satisfaction. Therefore, the fair price shop employees are advised to maintain a cordial
relationship with their consumers and to offer satisfactory replies on the queries raised by their consumers.

VII. Conclusion
The prime motto of establishing the fair price shops will be fulfilled when the real beneficiaries have optimally
utilized the services offered at PDS. Whereas, the utilization of services by the beneficiaries depend on satisfaction
which they derive from ration shops. The result of the study disclose that the general public will be satisfied when
they could obtain goods from the PDS in all months, goods are supplied with accurate weight and adequate staff
members are employed, PDS should be located at easily accessible place, distribution of variety of goods, supply of
goods in time, goods supplied at PDS are fit for consumption, fair price shops are to be opened in accurate time,
staff members of PDS should not insist the general public to buy unnecessary goods, PDS employees should redress
the general public grievance at the earliest.

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