Professional Documents
Culture Documents
open market practices. The worldtends to become a global village. This changes
the form of business all over theworld and it becomes inevitable. In our society,
its impact also has been observed.The emergence of super-store business in our
country gives us the signal to be apart of the global village.Technology makes
communication easier. Today ease of getting information isvery much affordable
as said earlier. Thus, we are exposed to more information.We are becoming more
educated. Now, we can justify more wisely. We do knowwhat is good for us in a
better way. This know-how changes our lifestyles. As weknow differences in
consumers needs, wants, personalities, attitudes, economicsituation,
educational background, personal tastes and social status make ourshopping
pattern different and globalization effect shapes our know-how, thetracking of
consumers shopping pattern becomes a very complex job. Nowmarketers have
to consider different issues while satisfying their customers needs.For example,
in recent study, it has seen that besides the factors as mentionedabove, the
choice of location, buying process, and environment of store alsoinfluence
shopping decisions. Today, shopping pattern does not include the buyingonly but
includes associated aspects of buying, as walking around, windowshopping,
location, surroundings, etc. -17. 1.1 Literature Review (Relevant Background)The traditional store for grocery
shopping can be said as the business (whose salesand assets are not large
enough to influence its environment; Griffin 2002) thatgenerally offer limited
merchandise and provide services mostly by untrained shopworkers. On the
other hand bazar is a location centric concept where manysellers gather their
limited variety of merchandise (mostly perishable) for sales andcustomers
required two transact in every point of sale, which means more timeconsumption
for purchasing full-scale grocery.The evolution of super-store in the United States
and several economical, social,political, technological and educational changes
had complimented to therevolution of super-store in world-wide. At the same
time, developing nations alsofelt the shake of it, as a result of globalization,
though in limited scale till now. Themission of this study toward the contributing
factors behind change in groceryshopping will bring clarity to the analyses.The
change in retail formats came from the concept of open salvages, where
publiccould be let into the stock room and would not create havoc (George
Wedd, 1998).He also focused on those traditional shops which are highly
specialized: stationerssold stationery: greengrocers sold vegetables- so that a
shopping trip had to becarefully planned (George Wedd, 1998).Two terms
appeared as unorganized sector (traditional stores) and organizedsector
(super-stores) and it has been seen as a shift from the first one to the secondone
(Simone Tata, 2003). Accordingly to her, organized retail stores arecharacterized
by large professionally managed format - providing goods andservices that
appeal to customers. She has focused on liberalization, morespending power (to
particular income group), more educated population, and mostimportantly,
exposed to brands and products through television the development oforganized
sector. She also cited that division of joint families giving way tonuclear families,
and the increasing number of working couples also contributed tothe
acceptability of super-store shopping. Moreover, convenience shopping
9. 1.2 Objective of the studyThis report has been prepared for the academic
purpose. This is a part of BUS 330course curriculum. The primary objective of
this report is to learn how to conducta research and write it down in a formal and
specific manner. The secondaryobjective of this study comes from the research
topic which comprises of threeissues:(1) Identify the factors that are most
important to consumers in choosing a super-store(2) Find out consumers degree
of satisfaction with the service provided by theexisting super-stores and(3) To get
consumers impression about the super-store shopping in relation to
thetraditional stores -410. 2.0 Research MethodologyThis is an exploratory research. This study is
not intended to finding any solutionof the problem rather it provides an
orientation to the readers by gatheringinformation on a topic with which he/she
has little experience. It provides greaterunderstanding of a concept rather than
providing precise measurement. Thisresearch has been conducted based on
primary data collection covering the Dhakacity area. Considering the time
constrain and ease of collecting informationstructured questionnaire has been
used for collecting the information. It facilitates this study in several ways: (1)
Let the researchers quick access to the necessaryinformation (2) Make it easy for
the respondent to answer (3) answers are in theform of numerical data (ranking),
thus, easy to analyze and interpret (4) let theresearchers to avoid the effect of
leading question by giving numerous choices (5)the questionnaire has been
moderated by the instructor which increases the scopeof the covering area. The
population of this study covers the individuals who maketheir shopping in the
super-stores. It is a consumer-focused study and the list ofsuper-stores shoppers
is still not reality (no sampling frame available). For thisreason, quota sampling
has been used (non-probability sampling). The controlvariables (sampling unit)
for sampling are-(1) Super-store identification: The super-stores, where large
numbers oftransactions take place at different point of time in a week, were
identified throughobservations. Identified points of sales were Agora, Almas
Super Shop, PrinceBazar Limited, Nandan, and Family World.(2) Day selection:
Friday, Monday and Thursday.(3) Time slot: 11 AM to 12 PM and 4 Pm to 7 PM.(4)
Respondents criteria: Likelihood of more than 18 years old for being capableof
independent judgments and at least three items in his/her basket that
strengthsthe possibility of making transactions. Five respondents were
interviewed in twohours according to the questionnaire to collect required data.
Total sample size is70. Data have been analyzed by using rank order and
statistical tools.Among 70 samples only two errors occur. Both of the errors are
response bias.One is deliberate falsification. Here the respondent gave answer in
order to appearintelligent. The other respondent seemed to misunderstand the
question andunconsciously gave bias answer. No other response errors and
administrativeerrors occur since the researchers were very cautious. A table
given below showsthe steps that the researchers took to protect biasness. -511. Errors Steps taken to avoid Acquiescence Bias (response bias) Well-designed
questionnaire and respondents were given enough choices. Interviewer Bias
(response bias) Let the respondent to fill up the questionnaire by him/her self.
Auspices Bias (response bias) The researchers assure the respondent by saying
that this survey will be conducted only for the academic purpose.Social
Desirability Bias (response bias) No such leading question has been added Data
Processing Error (admin. error) The researchers took enough time to record the
information. All the group members record the information individually then the
recorded information has been checked to one another. Sample Selection Error
(admin. error) The researchers spot quota sampling which reduces the likelihood
of occurring sample selection error significantly. Interviewer Error (admin. error)
Questionnaire had been filled up by the respondent and the researchers closely
monitored the responses. Interviewer Cheating (admin. error) Moral and ethical
concernsTo discuss the reasons for which people go to super-stores instead of
traditionalgrocery stores, satisfaction level of current customers and contribution
of super-stores in our shopping behavior, a Focus Group Interview (FGI) has
beenconducted on 7th September 2007 (Friday). On that day, there were six
people onthe location and the researchers tried to interview those, who are
relativelyhomogeneous and have similar lifestyles and experiences. The
researchers tried tomake sure that every one gets a chance to speak and to ask
questions to clarifytopics that have been introduced in the discussion. -612. For analyzing data the researchers use two statistical tools. One is
simpleregression analysis. For regression analysis, the least-squares method has
beenused. Using the criterion of least squares, the researchers can determine
whetherone estimating line is a better fit than another. Statisticians have derived
twoequations we can use to find the slope and the Y-intercept of the bestfittingregression line. The first formula calculates the slope: XY n XY b =
------------------------ X - n X Where, b = slope pf the best-fitting estimating line
X = values of the independent variable (% Income change) Y = values of the
dependent variable (% change in Expenditure) X = mean of the values of the
independent variable Y = mean of the values of the dependent variable n =
number of data pointsThe second formula calculates the Y-intercept of the line
whose slope wecalculated using the first equation: a = Y bX Where, a = Yintercept b = slope from first equation Y = mean of the values of the
dependent variable X = mean of the values of the independent variableThe
following formula has been used to calculate the Standard Error of Estimate: Y
- a Y b XY Se = ---------------------------- n2The standard error of estimate
measures the variability of the observed valuesaround the regression line. -713. The following formula has been used to determine Sample Coefficient
ofDetermination: a Y + b XY nY r = ---------------------------------- Y nYSample Coefficient of Determination (r) is a measure of the proportion
ofvariation in Y, the dependent variable (% change in Expenditure), that is
explainedby the regression line, that is, by Ys relationship with the independent
variable (%Income change).Coefficient of Correlation (r) is just the square root of
the coefficient ofdetermination. Its sign indicates the direction of the relationship
between twovariables, direct or inverse. r= r -814. The second statistical tool that the researchers use in this study is the
hypothesistesting. For hypothesis testing, both the z-test and chi-square test
have been used.The following formula has been used for z-test: x z =
calculated value of z falls within the accepted region as seen inthe picture. There
is no enough reason to reject the null hypothesis. - 10 16. Regression Analysis results: The sample coefficient of determination r turns
out0.2275. So we can conclude that the variation in the income explains 22.75
percentof the variation in the expenditure.Satisfaction level: According to our
observation the following factors should behighlighted if someone wants to open
up a new super-store since they got thelowest satisfaction rating (1)
Convenient public areas i.e. cleansing room [3.43](2) Knowledgeable employees
[3.43] (3) Handling of return and exchanges [3.46](4) Convenient parking [3.46]
(5) Stores commitment to its promises to dosomething [3.57](6) Store layout for
moving around the store [3.6] (7) Right the first time serviceperformance
[3.6].Importance level: According to our observation the following factors should
beconsidered first when someone trade off between super-stores: (1)
Convenience oflocation [4.66] (2) Friendly employees [4.46] (3) Large selection
of fruits andvegetables [4.40] (4) Offer several brands of a product [4.34] (5)
Fresh fruits andvegetables [4.31] (6) Convenience of parking [4.29] (7) Speed of
the service in thecash counter [4.06]Findings of the FGI:Eight major reasons for
which people prefer super-stores: Convenience Cleanliness Secured Environment
Reasonable Price Higher Quality Appropriate weight Product variety Easy to pay 11 17. Other findings - Though quality is a very subjective mater that is hard to
measure and it varies from person to person. In this FGI result, among six
respondents 3 consented that product quality was improved in super-stores
compared to the traditional stores, 2 respondents said it was partially improved
and only 1 respondent said product quality was not improved in the super-stores
than the traditional stores. From the FGI, it is clearly identified that consumers
impression about the price level of most products in these super-stores is slightly
higher compared to the prices of traditional shopping. According to the FGI, 3
said that super-stores were providing improved packing for their products
compared to the traditional shops. 2 said slightly improved packaging and only 1
said similar type of packaging was provided to their consumers compared to the
traditional stores. 2 respondents impression about the freshness of the superstores perishable goods were slightly higher compared to the traditional stores,
2 respondents said it was higher, 2 said it was similar and no one said it was
lower compared to the traditional stores. Among the 6 respondents, 5 said that
they were getting some extra or additional benefits from this type of superstores. Mainly, these are price discount, free sample, reliable suggestions,
parking facility, expiry date printed, air conditioned environment and
basket/trolley to carry their shopping bags and special offer during some festival
or sometimes they are arranging fruit festival or fish fair. But 1 respondent said
that they were not getting any extra or additional benefits from the super-stores.
According to the FGI, 3 respondents strongly agreed that they were able to
satisfy their all requirements or purposes when they were going to one of the
super-stores. 2 respondents partially agreed with this and only 1 strongly
disagrees with this statement. Among the 6 respondents, 5 respondents were
shopping simultaneously from super-stores and traditional shops and only 1 were
not doing so. - 12 18. 3.1 Discussion on findings and observationsConsumers perception about
higher quality of products (including perishableproducts) is the contribution of
neat outlook of products, space allocation forproducts, and self-selection facility
(which is totally impossible in traditionaloption). Additional benefits and
fulfillment of all household requirements bysuper-stores are incomparable to
traditional stores, which ultimately contributionto the positive image of superstores. The additional benefits are actually theapplication of modern marketing
strategies, which represent the emergence ofprofessional touch at the household
shopping sector in Bangladesh. Marketers alsoblessed with new opportunities as
they can use these super-stores for promotionalcampaign in a secured
environment, possibility of close interaction with theconsumers, CCTV operation
for studying buying behavior in addition to thesurvey.As most of the respondents
consented on higher product quality, improvedpackaging, higher freshness of
perishable goods, availability of additional benefits,fulfillment most of the
household requirement: it seems that the super-stores areproviding more
desirable shopping environment.In case responses on up to date equipment,
neatness of salesperson, physicalestablishment, sales persons problem solving
ability and knowledge of their jobare extremely positive. The researchers
reflection about such response is that, thistype of super-stores is in
contemporary state in Bangladesh and still has a newlook. People are
overwhelmed of it till now and still feeling it as status symbol,very different
shopping environment; thus people are not yet in a position todemand more
desirable facilities from the super-stores.The emergence of super-store also
exemplifies the threat to small business andcorporate business revolution in
Bangladesh. The business once occupied by smallinvestors like, rice mill,
turmeric powder, chili powder, vegetable, fish, meat, etc.are increasingly coming
under corporate umbrella. So the sum of total sales ofmany traditional grocery
stores becoming the total sales of one super-store. Herethe assurance of higher
sales volume in one point of sale means more revenuegeneration, which leads to
less per unit distribution cost for thesuppliers/distributors. This situation also
increases higher bargaining power ofsuper-stores in demanding supplier credit or
large price discounts. The super-storesalso have higher credit worthiness than
individuals as those are under corporateentity. Thus, the super-stores & their
suppliers are becoming complementary toeach other. But such situation may
result in small farmers less bargaining powerfor fair price. Large price discounts
also contributes to achieving economies ofscale in operation. - 13 19. Self-selection is one such important attribute of super-stores which provides
afeeling of independence and self-responsibility. This attribute highly support
pullstrategy of promotion. Thus it has explored more potential & challenges for
themarkets, especially in advertising and packaging. So there is more room
forinnovativeness in conceptualizing, and developing advertising and
packagingdecisions.Inventory management is a challenge for large assortment of
products especiallyfor the chance of pilferage. Developing in information
technology (IT) easedinventory management and payment process for large
be kept confidential and used only for academic purpose. If youare over 18 years
old and a regular customer of retail stores, we wouldgreatly appreciate it if you
complete this questionnaire.Thank you.
24. Your gender__ Male FemaleWhat is your age? 18 - 25 26 - 35 36 - 45 46 - 55
55 - and overPlease indicate your approximate monthly household income Under
TK10,000 TK10,001 - TK20,000 TK20,001 TK30,000 TK30,001 TK40,000
TK40,001 TK50,000 TK50,000 and overPlease indicate your approximate
monthly expenditure on superstore TK0 TK2,000 TK2,001 TK5,000 TK5,001
TK10,000 TK10,001 TK15,000 TK15,001 TK20,000 TK20,000 and overPlease
indicate how many times do you visit superstore a month? 0 to 5 6 to 10 11 to 15
More: Are you a brand loyal? Yes No
25. Are you satisfied with the service of super-store currentlyoperating in the
market? Give your opinion as per yourimportance level. Level of importance
___1___ ___2___ ___3___ ___4___ ___5___Stores are well decoratedMaterials
associated with this stores service(such as shopping bags, catalogs, or
statements)are visually appealing.This store has clean, attractive, and
convenientpublic areas (restrooms, fitting rooms).The store layout at this store
makes it easy forcustomers to find what they need.The store layout at this store
makes it easy forcustomers to move around the store.When this store promises
to do something by acertain time, it will do so.This store performs the service
right the first time.This store has stock available when thecustomers want it.This
store insists on error-free sales transactionsand records.Employees in this store
have the knowledge toanswer customers questions.Employees in this store are
never too busy torespond to customers requests.This store gives customers
individual attention.This store willingly handles returns andexchanges.When a
customer has a problem, this storeshows a sincere interest in solving
it.Employees of this store are able to handlecustomer complaints directly and
immediately.
26. This store offers high quality stock.This store provides plenty of convenient
parkingfor customers.This store has operating hours convenient to alltheir
customers.This store accepts most major credit cards.Please rank the following
factors (1 to 8) according to their relative importance whilechoosing a superstore: 1. Convenience _________________ 2. Cleanliness _____________ 3. Secured
environment _____________ 4. Reasonable price ________________ 5. Higher quality
__________________ 6. Appropriate weight ____________ 7. Product variety
______________ 8. Easy to pay ____________
27. Questionnaire 2
28. Dear Sir/Madam:I am a student of BBA, Eastern University. I am conducting a
researchon the Super store Industry in Bangladesh. All information collectedwill
be kept confidential and used only for academic purpose. If youare over 18 years
old and a regular customer of retail stores, we wouldgreatly appreciate it if you
complete this questionnaire.Thank you.