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A STUDY ON FACTORS AFFECTING CUSTOMER

SATISFACTION

A SUMMER INTERNSHIP REPORT

Submitted by

ANISHA K

1711004

in partial fulfillment of Summer Internship for the award of the degree


of

MASTER OF BUSINESSADMINISTRATION

THIAGARAJAR SCHOOL OF MANAGEMENT


PAMBAN SWAMY NAGAR, THIRUPARAKUNDRAM
MADURAI, 625005

AUGUST 2018
Pambanswamy Nagar,
Thiruparankundram,
Madurai – 625005
Tamilnadu, India

CERTIFICATE

Certified that the summer internship project report “A Study on Factors affecting
customer satisfaction” is the bonafide work of Ms.ANISHA K, 1711004, MBA in
THIAGARAJAR SCHOOL OF MANAGEMENT MADURAI carried out under
my supervision during May to June 2018.

Place: Madurai

Date: Dr. Vidya suresh

Faculty Guide

Associate Professor

Thiagarajar School of Management

Maduari
DECLARATION

I certify that

a. The work contained in this Summer Internship Programme is original and has been done

by myself under the general supervision of my Industry and Internal supervisors.

b. The work has not been submitted to any other Institute for any degree or diploma.

c. I have followed the guidelines provided by the Institute in writing the report.

d. I have conformed to the norms and guidelines given in the Ethical Code of Conduct of

the Institute.

e. Whenever I have used materials (data, theoretical analysis and text) from other sources,

I have given due credit to them by citing them in the text of the thesis and giving their

details in the references.

f. Whenever I have quoted written materials from other sources, I have put them under

quotation marks and given due credit to the sources by citing them and giving required

details in the references.

ANISHA K

iii
ACKNOWLEDGMENT

I use this opportunity to express my deepest gratitude to everyone who has supported me
throughout the course of this SIP project. The internship opportunity I had with Reliance
retail Ltd gave me practical industrial experience which will help me immensely in my
future ventures. I am thankful for their prospective guidance, invaluably helpful criticism,
suggestions during the project work.

I express my sincere thanks to my project guide Mr.Vimal patel (Manager-Marketing and


customer services) for his conceptual and moral support.

I would like to express my gratitude to our director Mr. Venkiteswaran R and our beloved
principal Dr. Selvalakshmi M, for providing us this opportunity.

I would like to express my gratitude to Dr.Vidya suresh, (Thiagarajar School of


Management) for providing me guidance and support during my project at Reliance retail
Ltd.

I would sincerely acknowledge the respondents who gave their valuable time and supported to
my project. Without their responses this report would be a half- hearted effort.

ANISHA K
iv
ABSTRACT

It is always known that business starts and closes with customers. This explains why
they have to be treated like the King of the market. All changes in the business which include
status, profit, image etc of the association depends on the clients. Hence it is important for all
the firms to meet all the customers’ expectations and to make sure that their customers are
satisfied. It is necessarily required for an association to network and communicate with
clientele on a habitual basis to boost customer satisfaction. In these interactions and
communications it is required to learn and determine all individual client requirements and
react accordingly. Even if the goods are identical in challenging markets, satisfaction
provides high retention rates.

This study thus studies the factors affecting the customer satisfaction in retail outlets
and it is found that, beyond prices store attributes is also the main factor that influences the
customer satisfaction. So, companies can play with different coins by moving them correctly
at right time.

v
TABLE OF CONTENTS

CHAPTER TOPIC PAGE NO.


DECLARATION iii

ACKNOWLEDGEMENT iv

ABSTRACT v

LIST OF TABLES viii

1. INTRODUCTION 1

1.1 Introduction 2

2. REVIEW OF ITERATURE 4

2.1 Review of Literature 5

3. COMPANY PROFILE 9

3.1 Company Profile 10

4. RESEARCH METHODOLOGY 12

4.1 Problem statement 13

4.2 Objectives of the study 13

4.3 Scope of the study 13

4.4 Research design 13

4.5 Nature of data 13

4.6 Method of data collection 13

4.7 Type of sampling 14

4.8 Sampling unit and number of samples 14

4.9 Tools for analysis 14


TABLE OF CONTENTS

CHAPTER TOPIC PAGE NO.

5. ANALYSIS AND INTREPRETATION 15

5.1 Demographic analysis 16

5.2 Reliability test 16

5.3 Factor analysis 17

5.4 Correlation 18

5.5 Regression 22

5.6 Independent sample T test 24

6 CONCLUSION 25

6.1 Conclusion 26

BIBLIOGRAPHY 27
LIST OF TABLES

S.NO TABLE TITLE PAGE NO.

1 5.1 Demographic analysis 16

2 5.2 Reliability test 16

3 5.3 Factor analysis 17

4 5.4 Segregation of items 18

5 5.5 Correlation 18

6 5.6 Hypothesis 20

7 5.7 Regression 22

8 5.8 Independent sample T test 24


CHAPTER 1

INTRODUCTION
1.1 INTRODUCTION

It is always known that business starts and closes with customers. This explains why
they have to be treated like the King of the market. All changes in the business which include
status, profit, image etc of the association depends on the clients. Hence it is important for all
the firms to meet all the customers’ expectations and to make sure that their customers are
satisfied.

Customer satisfaction measures how well the needs of customers are satisfied and
delivered to customers. It can only be accomplished if the buyer has an overall excellent
relationship with the provider. In today’s aggressive trade, customer satisfaction plays a vital
performance exponent and basic differentiator of business strategies. Hence, the bonding with
the customer is high if the customer satisfaction holds well.

Customer satisfaction is the overall spirit of the feeling about the provider by the
consumers. This notion which a customer makes regarding the person who supplies the
products they desire is the sum total of all the process he goes through, right from
conversation with the provider before doing any marketing to the post delivery services and
options and managing enquiries or criticisms post delivery. During this procedure the clients
comes across working surroundings of various subdivisions and the type of strategies
involved in the association. This helps the customer to make sturdy opinion about the dealer
which finally ends up in either satisfaction or dissatisfaction.

Customer’s perception on supplier helps the customer choose among the supplier on
basis of money value and how well the delivered goods suit all the needs. The supplier’s
services never lessening after the deliverance to the customer seeks high values post
marketing services which could help them use and customize the delivered product more
efficiently.if the customer is satisfied with all the services then it is more likely that he will
come back to the same store the next time.

It is necessarily required for an association to network and communicate with


clientele on a habitual basis to boost customer satisfaction. In these interactions and
communications it is required to learn and determine all individual client requirements and
react accordingly. Even if the goods are identical in challenging markets, satisfaction
provides high retention rates.
There is a direct relationship between the satisfaction level and the sentimental
attachment of customers with the product of specific brand and this is same in the case of
suppliers also. The bond between customer and supplier will be healthy because of this. This
also forces a customer to bond with that specific supplier. Here the chances of defection is
also very less. Hence customer satisfaction is an essential factor that every supplier should
keep a eye on to establish a good position in the global market and to achieve main aim of
running business that is profit.

In the recent times, India has came through the great changes in the behaviour of
customers while shopping. Modern retail outlets have given customers of India with new
experience and also keenly working on the factors that increase customer satisfaction. And
now they are also concentrating in making the availability of a wide range of products. They
operate in various shapes and sizes. They mainly differs on three factors 1) ownership type 2)
format used (kind of premises) 3) orientation of the range of products. This study mainly
focuses on studying the factors that affect customer satisfaction and focuses on demographic
proportion of the customers in various reliance retail formats in Chennai and finally to study
if the male and female satisfaction level.
CHAPTER 2

LITERATURE REVIEW
2.1 LITERATURE REVIEW

”Effects of online store attributes on customer satisfaction and repurchase intentions(2010),


Ruby Roy Dholakia (College of Business Administration, The University of Rhode Island,
Kingston, Rhode Island, USA”

“The essence of the paper is to measure the online factors that influence customers’
perception and satiety with online stores at two node points of time – when the order is
placed and after it is delivered.”

“An examination of the antecedents of repatronage intentions across different retail store
formats(2005),DebraGraceAronO’Cass”
“This paper traverses the point to which the regular custom of attraction of retail
stores are influenced by prices offered, customers’ feel and satiety. It also examines the effect
of service-in-store as a forerunner to such kind of consumer evaluations.”

“Interrelationships among store images, store satisfaction, and store loyalty among Korea
discount retail patrons(2003), DongMo Koo”

“This paper explores on the way in which nature of the perception for a discount retail
store, considered to be an abstract and global image component, attracts consumers’
satisfaction and how it affects loyalty of the store.”

“On the relationship between store image, store satisfaction and store loyalty(1998),Josée
Bloemer (Limburg University Centre, Belgium)”

“Here the relationship between store image, store satisfaction and store brand loyalty
is examined. A contrast is made among the true store loyalty and spurious store loyalty and
satisfaction with the store.”

“Self-Service Technologies: Understanding Customer Satisfaction with Technology-Based


Service Encounters(2000) ,Matthew L. Meuter, Amy L. Ostrom, Robert I. Roundtree, Mary
Jo Bitner”
“The way in which the customers interact with the firms in completely changed
through Self-service technologies (SSTs) to formulate service and the customer experience
can be habitual and measuring the degree of response on customer satisfaction.”

“Customer Satisfaction in Retail Banking( 2006),J. B. Howcroft Loughborough University


Banking Centre , Loughborough, UK, Leicestershire ”

“Objective of this paper is to explore the logical connections on the evolution of


customer satisfaction as a major component in retail banking and found that to be the easy
demand of easy accessibility.”

“Service Quality and Management Practices: A Look at Employee Attitudes, Customer


Satisfaction, and Bottom-Line Consequences(1991),Tornow, Walter W; Wiley, Jack W. HR.
Human Resource Planning”

“This article examined the correlation between customer satisfaction and employee
perceptions and attitude which has arrived to be a significant relationship.”

“Assessing the effects of quality, value, and customer satisfaction on consumer behavioral
intentions in service environments(2000),J.JosephCroninJr.Michael KBradyG.Tomas MHult”
“The article analyses and develops on the work to link the effects of standard of
quality, customers’ intentions and satiety”.

“Customers’ Reactions to Price Increases: Do Customer Satisfaction and Perceived Motive


Fairness Matter?(200),Christian Homburg,Christian Homburg,University of Mannheim,
Germany, homburg”

“Many earlier works on price ranges has focused on price decrease. This study has
now revealed the causes of price increases at an individual level and elasticity to price
increases (re-purchase intentions) are dependent on the factors like: the enormity and the
objective for the price increase”.

“The influence of price fairness on customer satisfaction: an empirical test in the context of
automobile purchases(2007), Andreas Herrmann (University of St Gallen, St Gallen,
Switzerland)”
“The study focuses at the relationship among the aspects of price fairness and
customer satiety and judgement of satisfaction. It also extends to find out particular factors
that influence fairness perceptions including price perception and consumer vulnerability”.

“Service quality, service convenience, price and fairness, customer loyalty, and the mediating
role of customer satisfaction(2015), Vinita Kaura (Faculty of Management Studies, Mody
Institute of Technology and Science, Lakshmangarh, India)”

“The objective of this article is to explore the extent to which service quality,
perceived price and fairness and convenience affects the customer satiety for retail banking
and how it affects the relationship among those factors”.

“Perceived quality and price: their impact on the satisfaction of restaurant customers (2004),
Marta Pedraja Iglesias (Assistant Professor in the School of Economics and Business Studies,
University of Zaragoza, Zaragoza, Spain)”

“The research accomplishes its objective of perceived quality has a positive effect on
customer satisfaction degree and total perceived price does not affect that satisfaction”.

“Store image attributes and customer satisfaction across different customer profiles within the
supermarket sector in Greece(2010) ,Prokopis K. Theodoridis (Department of Business
Administration of Food and Agricultural Enterprises, University of Ioannina, Ioannina,
Greece)”

“This research has two objectives: the test of the association between store images
attributes and customer satisfaction in the Greece market; examine the stable relationship
between store image attributes and customer satisfaction across many customer segments”.

“Share of wallet in retailing: the effects of customer satisfaction, loyalty cards and shopper
characteristics(2003),Anne W.Mäg”
“This research explores the impact of satiety of customer and loyalty cards as well as
consumer characteristics on customer share spent on store brand loyalty”.

“Waiting for service at the checkout: Negative emotional responses, store image and overall
satisfaction(2012), Allard C.R. van Riel (Institute for Management Research, Radboud
University, Nijmegen, The Netherlands)”
“The article has the objective of analysing the impact on time spent on waiting for
service at the counter influences total satisfaction of customer and how it decides on store
image”.
CHAPTER 3

COMPANY PROFILE
3.1 RELIANCE RETAIL LTD.,

Reliance Retail is the retail initiative of the group and is central to our consumer
facing businesses. It has in a short time forged strong and enduring bonds with millions of
consumers by providing them unlimited choice, outstanding value proposition, superior
quality and unmatched experience across all its stores.

Reliance Retail has adopted a multi-prong strategy and operates chain of


neighbourhood stores, supermarkets, wholesale cash & carry stores, specialty stores and
online stores and has democratized access to a variety of products and services across diverse
segments for Indian consumers.

Serving the food and grocery category Reliance Retail operates Reliance Fresh,
Reliance Smart and Reliance Market stores. In the consumer electronics category Reliance
Retail operates Reliance Digital, Reliance Digital Express Mini stores and Jio stores, and in
fashion & lifestyle category it operates Reliance Trends, Trends Women, Project Eve,
Reliance Footprint, Reliance Jewels and AJIO.com in addition to a large number of partner
brand stores across the country.

Reliance Retail has the distinction of being the largest retailer in the country. Reliance
Retail’s commitment to “bettering the lives” has been embodied in its pursuit to make a
difference on social socio–economic issues in India. The initiative has brought millions of
farmers and small producers to the forefront of the retail revolution by partnering with them
for growth.

Deep insight into India’s economic, cultural and consumption diversity drives
Reliance Retail’s vision in the retail universe. The operating model is based on customer
centricity, while leveraging common centres of excellence in technology, business processes
and supply chain. More importantly, it has built a strong and unwavering foundation through
its extraordinary people. Our nationwide network of retail stores offers a world-class
shopping environment and unmatched customer experience.

Reliance Retail has emerged as the partner of choice for International brands and has
established exclusive partnerships with many revered international brands such as Diesel,
Superdry, Hamleys, Ermenegildo Zegna, Marks and Spencer, Paul & Shark, Thomas Pink,
Kenneth Cole, Brooks Brothers, Steve Madden, Payless Shoesource, Grand Vision and many
more.

Reliance Retail reported a turnover of Rs. 69,198 crore for the financial year 2017-18.
As on 31st March 2018, Reliance Retail operates 7,573 stores across 4,400+ cities with a
retail area of over 17.70 million sft.

Reliance Retail Ventures Limited, a subsidiary of Reliance Industries Limited is the


holding company of Reliance Retail Limited which operates the retail business.
CHAPTER 4

RESEARCH METHODOLOGY
4.1 PROBLEM STATEMENT

Since the footfalls are comparatively less these days in reliance retail ltd.,there arise a
need of for determining the factors affecting customer satisfaction. So that they can find out
where to concentrate.

4.2 OBJECTIVES OF THE STUDY

 To analyse the demographic proportion.


 To find which are all the factors significantly affecting customer satisfaction
 To check the gender behaves in same way with respect to the customer
satisfaction.

4.3 SCOPE OF THE STUDY

The sample units are Chennai customers and the survey is taken with the customers
who came to all the reliance retail store formats in 2 months of period.

4.4 RESEARCH DESIGN:

Descriptive research design is the research design which is used, since this study
mainly aims to find what are all the factors affecting customer satisfaction and to find the
strength of the association between the factors.

4.5 NATURE OF DATA:

Primary data collection is collecting data from customers with the assistance of
questionnaire. This lies under survey method of collecting data.

4.6 METHOD OF DATA COLLECTION:

The primary method of data collection was done through floating questionnaires to
the customers. The questionnaire was developed using items from the previous studies (face
validity) to find the factors evaluating customer satisfaction. The scale used for measurement
is likert scale (5 point) ranging from very dissatisfied to very satisfied.
4.7 TYPE OF SAMPLING:

A non random sampling (convenience sampling) consists of customers who are easily
reachable. Here each and every element doesn’t have equal chance of getting selected.

4.8 SAMPLING UNIT AND NUMBER OF SAMPLES:

The population is all the customers of the reliance retail ltd. The sample size is 420
and it is a good count to infer the population. sample size is very important to infer the
population with higher extent of accurate representation.

4.9 TOOLS FOR ANALYSIS:

The analysis is done with the help of excel and spss. Demographic analysis is done
with the assistance of excel (pie chart and bar chart) and the other objectives are achieved
with the spss analysis(reliability test, correlation, regression, independent Sample t test).
CHAPTER 5

ANALYSIS AND INTREPRETATION


5.1 DEMOGRAPHIC ANALYSIS:
TABLE 5.1
variable frequency Percentage
Gender Male-193 45.5
Female-231 54.5
Age 16-25years –79 18.6
26-35years-138 32.5
36-45years-135 31.8
46-60years-59 14
More than 60years-13 3.1

From the above table, it is shown that female are the majority customers and 26-35
years age group majorly contributes to the total footfalls.

5.2 RELIABILITY TEST:


TABLE 5.2

Cronbach's
Alpha Based
on
Cronbach's Standardized
Alpha Items N of Items
.729 .741 16
Since the cronbach’s alpha is greater than 0.7(0.729>0.7) the reliability of the items
are tested and is fair enough to measure the dependent variable.
5.3 FACTOR ANALYSIS:
TABLE 5.3
Rotated Component Matrixa
Component
1 2 3 4 5 6
ITEM1 .856
ITEM2 .877
ITEM3 .564
ITEM4 .687
ITEM5 .828
ITEM6 .645
ITEM7 .728
ITEM8 .806
ITEM9 .598
ITEM10 .442
ITEM11 .511
ITEM12 .675
ITEM13 .638
ITEM14 .680
ITEM15 .718
ITEM16 .836
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 8 iterations.
TABLE 5.4

From the above table the items are grouped into:


Price and Store Store Employee Product Overall
availability attributes convenience attitude quality checkout
of products experience
Price of Cleanliness Parking facility Store staff Quality of Overall
products inside the for the store interaction the product checkout
store experience
Availability Space for Signboards and Time taken Loyalty
of products movement directions to for billing enrollment
inside the locate sections
store and products
Range of Lightning Airconditioning Knowledge
products inside the inside the store on products
store available
To check the relationship between independent variables and dependent variables correlation is
done.

5.4 CORRELATION
TABLE 5.5
Store Emplo Product
overall Price and Store conve yee quality Overall
satisfactio availability attributes nience attitud checkout
n of products e experience
overall satisfaction Pearson 1 .427** .358** .302** .233** .294** .247**
Correlati
on
Sig. (2- .000 .000 .000 .000 .000 .000
tailed)
N 420 420 420 420 420 420 420
Price and Pearson .427** 1 .304** .331** .253** .355** .100*
availability of Correlati
products on
Sig. (2- .000 .000 .000 .000 .000 .040
tailed)
N 420 420 420 420 420 420 420
Store attributes Pearson .358** .304** 1 .373** .184** .349** .109*
Correlati
on
Sig. (2- .000 .000 .000 .000 .000 .025
tailed)
N 420 420 420 420 420 420 420
Store convenience Pearson .302** .331** .373** 1 .170** .311** .196**
Correlati
on
Sig. (2- .000 .000 .000 .000 .000 .000
tailed)
N 420 420 420 420 420 420 420
Employee attitude Pearson .233** .253** .184** .170** 1 .200** .232**
Correlati
on
Sig. (2- .000 .000 .000 .000 .000 .000
tailed)
N 420 420 420 420 420 420 420
Product quality Pearson .294** .355** .349** .311** .200** 1 .206**
Correlati
on
Sig. (2- .000 .000 .000 .000 .000 .000
tailed)
N 420 420 420 420 420 420 420
Overall checkout Pearson .247** .100* .109* .196** .232** .206** 1
experience Correlati
on
Sig. (2- .000 .040 .025 .000 .000 .000
tailed)
N 420 420 420 420 420 420 420
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).

From the above table it is clearly shown that, there is a relationship between all the
independent variables (Price and availability of products, Store attributes, Store convenience,
Employee attitude, Product quality, Overall checkout experience) and dependent variable
(overall satisfaction).

TABLE 5.6
HYPOTHESIS
NO HYPOTHESIS
1 H0: There is no significant relationship
between price and availability of products
and overall satisfaction.
H1: There is a significant relationship
between price and availability of products
and overall satisfaction.

2 H0: There is no significant relationship


between Store attributes and overall
satisfaction.
H1: There is a significant relationship
between Store attributes and overall
satisfaction.
3 H0: There is no significant relationship
between Store convenience and overall
satisfaction.
H1: There is a significant relationship
between Store convenience and overall
satisfaction.
4 H0: There is no significant relationship
between Employee attitude and overall
satisfaction.
H1: There is a significant relationship
between Employee attitude and overall
satisfaction.
5 H0: There is no significant relationship
between Product quality and overall
satisfaction.
H1: There is a significant relationship
between Product quality and overall
satisfaction.
6 H0: There is no significant relationship
between Overall checkout experience and
overall satisfaction.
H1: There is a significant relationship
between Overall checkout experience and
overall satisfaction.

7 H0: There is no association between gender


and overall satisfaction.
H1: There is a association between gender
and overall satisfaction.
5.5 REGRESSION
TABLE 5.7
Coefficientsa
Unstandardized Standardized 95.0% Confidence
Coefficients Coefficients Interval for B
Std. Lower Upper
Model B Error Beta t Sig. Bound Bound
1 (Constant) .106 .334 .319 .750 -.549 .762
Price and .294 .047 .293 6.216 .000 .201 .387
availability
of products
Store .261 .063 .194 4.121 .000 .137 .386
attributes
Store .063 .040 .074 1.568 .118 -.016 .142
convenience
Employee .068 .047 .064 1.442 .150 -.025 .160
attitude
Product .065 .057 .055 1.152 .250 -.046 .176
quality
Overall .193 .054 .156 3.559 .000 .086 .299
checkout
experience
a. Dependent Variable: Q13. Overall satisfaction

INFERENCE:
1)From the table, since the significant value is lesser than 0.05(0.000<0.05) it is
shown that there is a significant relationship between price and availability of products and
overall satisfaction.
2) From the table, since the significant value is lesser than 0.05(0.000<0.05) it is
shown that there is a significant relationship between Store attributes and overall satisfaction.
3) From the table, since the significant value is greater than 0.05(0.118>0.05) it is
shown that there is no significant relationship between Store convenience and overall
satisfaction.

4) From the table, since the significant value is greater than 0.05(0.150>0.05) it is
shown that there is no significant relationship between Employee attitude and overall
satisfaction.

5) From the table, since the significant value is greater than 0.05(0.250>0.05) it is
shown that there is no significant relationship between Product quality and overall
satisfaction.

6) From the table, since the significant value is lesser than 0.05(0.000<0.05) it is
shown that there is a significant relationship between Overall checkout experience and
overall satisfaction.
5.6 INDEPENDENT SAMPLE T TEST (GENDER AND OVERALL
SATISFACTION)

TABLE 5.8

Levene's
Test for
Equality of
Variances t-test for Equality of Means
95%
Confidence
Sig Interval of
. Std. the
(2- Mean Error Difference
tail Differe Differe Lowe Uppe
F Sig. t df ed) nce nce r r
Overall Equal .990 .320 - 418 .09 -.106 .064 -.232 .019
satisfactio variances 1.671 5
n assumed
Equal - 378.1 .10 -.106 .065 -.233 .020
variances 1.649 48 0
not
assumed

From the above table, homogeneity of variance is verified. And also from the
significance value which is greater than 0.05(0.095>0.05) indicates that there is no
association between gender and overall satisfaction.
CHAPTER 7

CONCLUSION
7.1 CONCLUSION

In reliance retail ltd, the main factors affecting the customer satisfaction are price of
products, availability of products, store attributes, and overall checkout experience.
Generally, reliance retail stores are famous for offers and discounts. So the fact that people
more concentrate on good price offered at reliance retail stores than the product quality is
also proven. This doesn’t mean that they don’t have good quality products. They do have
good quality products but while comparing with the prices they offer people concentrate and
get satisfied with good prices only.
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