APPLIED RESEARCH METHOD

REVIEW PAPER ON
“IMPACT OF SELECTED MARKETING MIX ON CUSTOMER
SATISFACTION OF GROCERY STORE CUSTOMERS IN
HYDERABAD, PAKISTAN”

AUTHORS

SYEDA RAKHSHINDA ARA ANJUM

HAFSA KHAN
SYED ASHER ALI

SUBMITTED TO

SIR GHAFOOR KAZI

 ABSTRACT

The purpose of the study is to examine the impact of selected marketing mix on customer
satisfaction of grocery store customers in Hyderabad Pakistan. Structured questionnaire has been
used to collect data from three grocery stores that are Max Bachat, Grocers and Dawood in
Hyderabad. Sample size selected is 120 through the Rule of thumb. Data analysis has been done
through the methods of correlation, Reliability test and Anova. The results infer that the
independent variables, location and pricing have a significant impact on the customer satisfaction
of grocery store customers in Hyderabad while the independent variable promotion does not pose
a significant impact on customer satisfaction. Through the results, it can be evaluated that there
is a room for improvements in promotional strategies therefore it is recommended that future
promotional strategies shall be revised and tested on the basis of customer satisfaction so that
promotion also influences the customer satisfaction in order to gain customer loyalty.
INTRODUCTION
Hyderabad is the second largest city of Sindh province and an ideal home for urbanization.
People from the whole interior Sindh province come to shop. Grocery markets in Hyderabad
facilitate a vast and growing population of the district along with other adjacent districts. Retail
markets play vital role in providing a wide range of goods that can be necessities to auxiliaries
for public. The objective of this study is to identify impact of Location, pricing and promotion on
customer satisfaction of grocery store customers. Structured questionnaire has been used to
collect data from three grocery stores that are Max Bachat, Grocers and Dawood in Hyderabad.

SUPERMARKETS IN HYDERABAD:
There are number of grocery stores present in Hyderabad but we will be focusing on the below
mentioned three stores

1. MAX BACHAT:
Max bachat is a well known supermarket located at Thandi Sarak Hyderabad, established in
2011.It is Hyderabad's grocery store that offers 10,000 of products in wholesale prices.
Customers buy variety of products it most affordable prices.

2. DAWOOD:
Dawood Supermarket is one stop shop located at Autobahn Road, is Hyderabad's retailing
corporation that operates as a chain of departmental and grocery store. This store offers wide
variety of products including grocery items, crockery, apparels, cosmetics and bags, footwear,
furniture and much more.

3. GROCERS:
The Grocers established in 2016, a complete lifestyle and Gourmet mega grocery store provides
quality groceries, food, vegetables, poultry and meat at Boulevard Mall Hyderabad. One stop
shopping solution for Hyderabad Consumers offering them choice and variety also value for
money and quality like never before.
1. LOCATION AND CUSTOMER SATISFACTION

Ali et.al (2015) this study examines the key determinants of customer satisfaction in
grocery retailing and measure the link between stores attributes and customer satisfaction
in Malaysia. It aims to find out the effect size of these determinants on overall customer
satisfaction in an emerging market. A dataset from 313 shoppers who had carried out
their purchase in different type of grocery stores has been analyzed. Using Partial Least
Squares analysis method they show that three determinants monetary value, service and
convenience, and store quality image have a positive impact on customer satisfaction.
Results may help managers of grocery stores in Malaysia to develop and implement more
successful relationship marketing strategies.

Chandrakala and Sudhahar (2018) this study focus is to find out the determinants of
consumer satisfaction in departmental stores from Tirupur district. A structured
questionnaire developed and data were collected. The sample consists of 400 consumers
and exploratory factor analysis. ANOVA and f-test revealed that six of the factors such as
employees’ behavior, Leisure & refreshment, Ambience, Price & Quality, Location and
Exclusive Products were major predictors of consumer satisfaction as they were found to
be significant at one percent or five percent level. The factor analysis, ANOVA and f-test
results reveal that customer satisfaction is influenced by the six factors resulted from
factor analysis test and further, socio-economic variables have a good voice-over the
customer satisfaction while buying in the departmental stores. The research can be
extended in other areas of the State and comparative study can be undertaken by taking
other organized retail formats.

Malik et.al (2016) this research study is conducted with an objective to find out how
various factors influence shoppers' behavior towards supermarkets with 300 respondents
consisting of 150 males and 150 females by using shop intercepts method in the cities of
Lahore and Faisalabad in Pakistan. Findings of this study provide the insights to
understand the influence of several factors like promotion and special offers, easy access
to supermarket, geographically convenience and locality, customer services, exploration,
pricing factor, socioeconomic effects, cleanliness, aesthetics and escape from routine
work on the consumer's perception.

Rana et.al (2014) this study aims retail chain stores in Bangladesh and determining the
factors constituting customer satisfaction. By doing interviews from customers of three
big retail chain stores the data were collected. From the results, it was determined that the
model suitably explains customer satisfaction and that retail chain store owners and
managers should focus on four major elements that are responsiveness, product quality,
physical design and pricing policies if customer satisfaction is to be treated as a strategic
variable. The study found that responsiveness and product quality were most important to
 customers followed by price and physical design. Location did not have a significant
effect on customer satisfaction although the exploratory analysis and the secondary
research supported it.

2. PRICING AND CUSTOMER SATISFACTION

Roth and Bosener (2015) developed that price is a main factor for the profit of any firm,
it is important to evaluate mechanism of customer price behavior and it is factors as
customer satisfaction is one of the factor from these two evaluate recent academic
literature on marketing and pricing. Further this study wants to find research gap that can
act as avenues for future research. First future researches consider that fulfilling
consumption experience, customer pays a certain price. These prices are used by
company to evaluate future price behavior. Second, future research should make
difference between influence of customer satisfaction and impact of customers on
customer price behavior. Third, some factors are important in behavioral pricing such as
price processing, price acquisition & price knowledge. Fourth, research should consider
further moderators of relationship between customer satisfaction and customer price
behavior. Ending these gaps create valuable contribution to marketing research and
practice.

Razzak et.al (2016) purpose of this study is to taste product quality and price towards
customer satisfaction and to taste role of customer value in making better customer
satisfaction. This study is perception and casualty for toothpaste customers, Further they
get data through questionnaire method& they found that functional value of toothpaste
product is brought by the customer is not optimal yet to be main consideration to satisfy
the customers, product quality itself conforming the production standard in advance.

Djumarnoet.al (2018) developed effect of product quality & prices, as independent

factors to customer satisfaction, customer loyalty of baliratih websites in Jakarta &to
know reviews of independent variables. The questionnaires were given to one twenty-five
respondents & data was taken through simple random sampling techniques. Through
structural equation modeling by SPSS Amos programme were used to analyze the data.
The result has valuable impact of product quality & prices to customer satisfaction, prices
& customer loyalty to customer satisfaction. Finally the findings show that purchase
decisions intervene relationship product quality & prices to customer loyalty of
baliratihin Jakarta. Future studies investigate other variables which influence satisfaction
& loyalty in online shopping.
3. PROMOTION AND CUSTOMER SATISFACTION

Watanabe et.al (2013) this study aims to investigate the relationship between consumer
satisfaction and image attributes in grocery stores. A quantitative study was conducted
among 400 individuals from southwest brazil. Exploratory factor anaylsis and structural
equation modeling methods were implemented for data analysis. Results stated that the
constructs envirionement and promotions were not considered important in determining
satisfaction, however the attributes personell, product and price posed a postive impact on
satisfaction, with price having the highest impact.

Bakator et.al (2018) the study examines the influence that promotional activities have on
customer satisfaction. This study also aims to determine the effectiveness of promotional
activities on customer satisfaction in the marketing environment. Collection of data was
carried out through online survey from customers, consumers of different products. The
results showed that promotional activities have a greater influence on customers post
purchase decision.

Ubeja (2014) the purpose of the study was to examine the effects that the promotion mix
have on customer satisfaction in grocery stores of Indore city. Data was collected from
the sample of 175 active grocery shoppers. Structured questionnaire was distributed and
the sales promotion mix factors were evaluated which were lucky draw offers, discount
and warranty offers. The results implied that the average customers of Indore city were
not much sales promotion concsious while the students were quiet consious about these
sales promotion mix.

Jallow and Dastane (2016) the research investigates the effect of sales promotion on the
purchase intention and customer satisfaction of customers in grocery stores in Malaysia.
Empirical data was collected from 150 respondents with the help of self administered
questionnaire and the analysis was carried out through correlation and regression
methods to examine the relationship among variables. Results infer that the independent
variables like bonus packages, free samples, premiums and price discounts have a greater
positive influence on the customer satisfaction of grocery store customers.
RESEARCH OBJECTIVES
1. To identify impact of Location on customer satisfaction of grocery store customers in
Hyderabad, Pakistan

2. To identify impact of Pricing on customer satisfaction of grocery store customers in

Hyderabad, Pakistan
3. To identify impact of Promotion on customer satisfaction of grocery store customers in
Hyderabad, Pakistan

RESEARCH HYPOTHESIS
𝐻01 : There is a significant impact of Location on customer satisfaction of grocery store
customers in Hyderabad, Pakistan
Ho: There is no significant impact of Location on customer satisfaction of grocery store
customers in Hyderabad, Pakistan
𝐻02 : There is a significant impact of Pricing on customer satisfaction of grocery store customers
in Hyderabad, Pakistan
Ho: There is no significant impact of Pricing on customer satisfaction of grocery store customers
in Hyderabad, Pakistan
𝐻03 : There is a significant impact of Promotion on customer satisfaction of grocery store
customers in Hyderabad, Pakistan
Ho: There is no significant impact of Promotion on customer satisfaction of grocery store
customers in Hyderabad, Pakistan

STATEMENT OF THE PROBLEM

This study provides the information about the impact of location, pricing and promotion on
grocery stores customer’s and customer satisfaction. The study focuses on people understanding
about whether the impact of selected marketing mix is there over customer satisfaction or not.

PURPOSE OF STUDY
The purpose of our research study is to find out about the impact of location, pricing and
promotion on grocery stores customer’s and customer satisfaction. The customer satisfaction is
greatly affected by which factor whether its location, pricing or promotion. Therefore, the
dissertation will help the reader in knowing new information about customer satisfaction and
selected marketing mix.
CONCLUSION
The results of our research shows that two alternative hypothesis are accepted but third
hypothesis is rejected which is as follows there is a significant impact of Location and pricing on
customer satisfaction of grocery store customers whereas there is no significant impact of
Promotion on customer satisfaction of grocery store customers in Hyderabad, Pakistan. It can be
evaluated that there is a room for improvements in promotional strategies therefore it is
recommended that future promotional strategies shall be revised and tested on the basis of
customer satisfaction so that promotion also influences the customer satisfaction in order to gain
customer loyalty

RECOMMENDATION
The research conducted on supermarkets in Hyderabad Pakistan reveals that promotion do not
have positive relation on customer satisfaction which shows that there is a room for
improvements in promotional strategies therefore it is recommended that future promotional
strategies shall be revised and tested on the basis of customer satisfaction so that promotion do
impacts on customer satisfaction.

Whereas location of supermarkets and their pricing is indeed a major factor that satisfies
customer of supermarkets in Hyderabad, Pakistan so we recommend that any new supermarket
that enters Hyderabad, Pakistan or new extension of existing supermarkets shall be located on
feasible locations for people along with reasonable prices in future.
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