A study on consumer perception on Infrastructure with special reference to HSP TIMSR 1 Introduction Consumer Behavior: Consumer behavior can be defined as the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas, or experiences to satisfy needs and desires. In this definition consumer behavior is viewed as a process that includes the issues that influence the consumer before, during, and after a purchase.(Kotler, 2008) Many nations across the globe have witness robust growth in retail sector in past couple of decades. Many of the developed and under developing nations (Like USA, Japan, Brazil, and China etc.) have already witnessed a paradigm shift which has redefined the world of Retail. The emergence of mall culture in India gave a unique experience of shopping along with entertainment. This concept is known as Shopentertainment. The Retail bazaar in India is booming beyond everyones expectation. The Indian Retail sector has caught the worlds imagination in the last few years and its one of the next big thing. Indias retail growth was largely driven by increasing disposable incomes, favorable demographics, changing lifestyles, growth of the middle class segment and a high potential for penetration into urban and rural markets. Indian consumers have evolved from being a weekly bazaar customer to a window shopper who seeks pleasure in just enjoying ambience. Today consumers look for facilities like cost, comfort, convenience, in-house-parking, entertainment, coffee shops, multiplexes, play areas for children, gaming and food-courts when they step into these malls. The customer doesnt seek mere satisfaction they want to feel delighted. A shopping have become an entire family affairs and customers comes to malls for every kind of need. It is not just about shopping, dining, or watching a movie, it's an experience in itself, a lifestyle activity, and providing this experience is what these malls are building up as their USP. Organized retail stores are characterized by professionally managed large format stores, providing goods and services that appeal to consumers, in an ambience that is conducive for shopping. The possibility of shopping for clothes, shoes and grocery, while simultaneously having provision for eating at food-courts and entertainment in the form of movies at multiplexes or video game parlors, has been a convenient experience for the consumers. Malls with good interiors and large shopping space attract huge crowds. Customers like shopping in air-condition pollution free malls rather than roadside stores. The quality of the products is guaranteed as most malls
Page | 2 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR house well-known brands and retailers. For consumers not confident about bargaining and preferring to avoid crowded marketplaces, shopping malls provide the necessary solution. Organized retailing is changing the whole concept of shopping in terms of consumer buying behavior. In such a scenario, consumer decision making is of great interest for consumer educators and marketers interested in serving the consumer. In this study, an attempt was made to study the consumer decision-making styles in reference to Infrastructure of the shopping mall. 2 Consumer behavior 2.1 Consumer behavior in brief Consumer behavior is the study of when, why, how, and where people do or do not buy product. It is the study of the acquisition, consumption, use and disposal of products, services, experiences or ideas, by consumers. When considered in greater depth, however, consumer behavior can be defined as the study of how and when individuals, groups and organizations select, purchase, use and dispose of products, services, experiences or ideas to satisfy their needs. It also involves the study of what products, services, experiences or ideas consumers select, purchase, use and dispose of, and why. In addition, consumer behavior gives broad overlook at the impacts that the processes of selection, purchasing, use and disposal have on the consumer and on society.
Figure 2.1 # Consumer behavior
Page | 3 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR Consumer behavior studies the characteristics of individual consumers, by looking at variables such as demographics, psychographics and behavior, in an attempt to understand the consumer and his or her world. There are many forces which motivate consumer to behave in certain way. Demographics include factors such as race, age, sex, socio economic status, and income, mobility - in terms of travel time to work, educational attainment, home ownership, employment status and location. Psychographics are attributes related to personality, values, attitudes, interests, or lifestyles. Behavioral variables include usage rate and loyalty. Consumer behavior also tries to relate the way consumer behaves to the groups such as family, friends, reference groups and society in general.(Perner, 2003) Consumer behavior is a field of marketing that blends elements from economics, psychology, sociology, social psychology, anthropology and other sciences, such as physiological psychology, biochemistry, and genetics. It gives 360 degree view about what motivates consumer to choose a particular brand or the service. The field of economics actually provided the foundation for marketing, but it wrongly assumed that consumer buying decision are rational when they choose any particular product or service. By neglecting the emotional side of the customer, among other psychological factors, economists failed to provide marketing with all of the concepts needed to understand the complexities of what motivates consumers. 2.2 Model of consumer behavior Behavior occurs either for an individual on his own or for an organization (where people on the job make decisions as to which products the firm should use). The study of consumer behavior attempts to understand the buyer decision making process for individuals, groups and organizations. Consumer decision making is and holistic approach to understand and attempt to solve consumer problems both minor and major. A consumer buying decision process can have up to six stages. Actual purchasing is only one stage of the process, and not all decision processes may lead to a purchase. The number of stages involved in a particular decision will depend on the degree of complexity of that decision. The six stages are: problem recognition, information search, evaluation of alternatives, purchase decision, purchase, and post-purchase evaluation.
Page | 4 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR The first stage, Problem Recognition, is when a consumer becomes aware of a need. The need can be latent or manifest. Latent need refers to hidden need. The need is manifest because there is a difference between the consumers desired state and his or her actual condition. The second stage is the information search. There are two types of information searches: internal and external. With an internal information search, the consumer searches the information stored in his memory. Past experience plays a vital role here. If more information is needed after the internal search, the consumer may consult external information sources such as friends and relatives for word-of-mouth, marketing information, comparison shopping, advertising media, Internet, other mediums and public sources. A successful information search leaves a needy consumer with possible alternatives. Based on his preference and choices he shortlist certain alternatives. With the help of alternatives the consumer embarks on the third stage of the buying decision process: Evaluation of alternatives. Here, the consumer may need to establish the criteria for evaluation, such as features, price or availability of the product or service that the buyer wants or does not want. The consumer may rank or weigh the alternatives to arrive at a choice, or resume searching if a satisfactory choice is not arrived at. Information from different sources may be treated differently. The fourth stage in the consumer buying decision process is the purchase decision. Here, the consumer selects from the available alternatives, the consumer makes decisions on details such as the specific product or service, its packaging, retail outlet and method of purchase. The fifth stage is the purchase, in this stage actual purchase takes place. Which at times occurs simultaneously with the purchase decision? Sometimes product availability issues may cause a time lapse between the purchase decision and the actual purchase. The sixth and last stage in the consumer buying decision process is post-purchase evaluation or post purchase behavior (also known as post-acquisition evaluation), which may occur to the buyer consciously or subconsciously. At the end of his or her evaluation, the buyer may experience satisfaction or dissatisfaction. Dissatisfaction may result from many factors, such as unmet brand expectations, and at times may lead to the consumer lodging a complaint. Sometimes after purchase there is a negative feedback from the peer group about the product. In this case the buyer tends to be
Page | 5 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR dissatisfied. A satisfied consumer may end up becoming loyal to a particular brand or retail outlet.
Figure 2.2 # model of consumer decision process 2.3 Recognizing Factors that Influence the Purchase Decision Consumer behavior is subjective. Sometimes it becomes difficult to find particular reason why consumer behaves in particular manner. Even though you wont find many absolutes, one thing always remains true: When it comes to the consumer decision making process, many factors play a part. There are two categories of personal influence regarding the purchase decision. They include the following: Internal influences: These influences include perceptions, attitude, lifestyle, and roles. External influences: These influences include cultures, subcultures, household structures, and groups that have an effect on the individual. Every situation and influence is different. You can change some influences and others you can only deal with as they happen. Sometimes youll even find that you can counteract the
Page | 6 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR way the influences affect a consumer. Its important to understand that while you can categorize internal and external influences of consumers into two groups, theyre actually interconnected and work together to assist the consumer in making a purchasing decision. 2.4 Internal influences These are the factors which arise from within the consumer. Theyre the personal thoughts and feelings, including perception, self-concepts, lifestyle, motivation, emotion, attitudes, and intentions. You could call these the psychological influences. These factors can be best describe the ways in which consumer interact with world around them, recognize their feelings, gather and analyze information, formulate thoughts and opinions, and take action. One can use consumer internal influences to better understand the why and how of specific behaviors. The following sections help you gain a better understanding of each of these influences. Motivation and emotion Motivation and emotions are forces within consumers which are responsible for certain for special kind of behavior which customers exhibits. Motivation is the persistent need that stirs up and stimulates long-term goals within a consumer. Emotions are temporary states that reflect current changes in motivation. They also often trigger changes in behavior. Motivation and emotion often work together to impact consumer behavior. Motivation drives a consumer through the consumer buying process, and emotion drives that motivation. One can apply your knowledge of motivation and emotion to your marketing strategy by finding ways to stimulate consumers emotions and motivate consumers to fill the need aroused by those emotions. According to Maslow's hierarchy of human needs, for each need there are positives gained and negatives that are avoided by meeting that particular set of needs. Products that are purchased because of a need will satisfy a goal and avoid unwanted consequences. For example, people need to feel secure so they purchase smoke detectors, therefore gaining protection and avoiding loss and fear of fire.
Page | 7 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR Perception Every individual have a different view about a same thing, this is because of the response generated to specific factors. Perception is representative of how a consumer processes and interprets information. It can be describes how consumers see the world around them, the world that includes products and services. Perceptions are unique and determine purchasing behavior in every consumer differently. Perception is important because it represents the way the consumer views product or service. You can influence the perception of consumer by understanding the current perception consumers have of product and making changes so your product is recognized, interpreted, and stored in their memory rather than simply ignored. Perception plays a vital role when certain features are associated with the brand and service. Attitude A learned predisposition to behave in a consistently favorable or unfavorable manner with respect to a given object. Attitude is the lasting general evaluation of something. It gives brief idea about how consumers feel about products, services, and companies. Attitudes can tell you a lot about your consumers and how well youre accepted in the marketplace. It is an important fact that consumers easily screen information that conflicts with their own attitudes. A consumers attitudes are learned. Theyre formed by direct personal experiences, and theyre influenced by the individuals ideas and personality, the experiences of friends and family members, and media exposure. The attitude can be influenced. In fact, when attitude is combine with knowledge a positive or negative attitude about a specific object or product, one can understand their perception and how they perceive specific brand and service.. Self-concept and lifestyle
Self-concept is phenomenon wherein how individual have an image for himself. A self-concept represents how a sees herself. Four self-concepts typically impact individuals and their consumer behavior. Here they are: Actual self, which is reflective of how the individual actually is today Ideal self, which represents how the individual would like to be Private self, which is the self-thats intentionally hidden from others
Page | 8 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR Public self, which is the self-thats exposed to the public Self-concepts explain why consumers wear certain fashions, purchase particular products, and drive specific cars. They determine a consumers behavior, because they represent how a consumer sees herself and how she thinks other people see her. When you understand the roles of self-concepts, you can use them to better target your marketing message and advertising to reach potential customers 2.5 External influences Consumers are faced with many external influences, including an individuals culture, subculture, household structure, and groups that he associates with. Marketers and business owners call these external influences because the source of the influence comes from outside the person rather than from inside which would be internal, or psychological, influences. They can sociocultural influences; because they evolve from the formal and informal relationships the individual has with other people. In the following sections, here are some of the external influences and how and why they affect consumers. Culture and subculture One of the major factors that influence consumer decision is the culture of an individual which shapes their values, beliefs, attitudes, and opinions, which in turn shape their attitude toward products, perception and buying decisions. Culture also meets many of the emotional needs of individuals, so they strive to protect the beliefs and values of their cultures. This protection is reflected in their behavior as consumers. In fact, culture can create a consumer needs, influence the satisfaction of needs, and dictate how an individual meets that need. Products and services that resonate with the priorities of a specific culture have a much better chance of being accepted by consumers. Cultural values are transmitted through the family, religious organizations, and education institutions. Marketers use this information to gain a better understanding of the values that specific cultures teach. Subculture represents a group of individuals within a culture that have unifying characteristics. A subculture is generally representation of a particular nationality, religion, racial group, or geographic group. There identification can be used to market
Page | 9 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR directly to a subculture. Companies can target consumers more directly with their marketing and create messages that are more appealing and enticing when there is better understanding of the subcultures of consumers. Groups Groups in general defined as two or more individuals who share a set of norms, values, or beliefs. Examples include peer groups, school groups, business groups, and clubs. Individuals like to identify themselves with groups to the extent that they take on the values, attitudes, and behaviors of that group. One need to understand the groups that consumers belong to because groups carry significant weight when it comes to the influence they have on consumers. Companies also can gain benefit from identifying the opinion leaders within groups and informing them of the products they offer. By gaining their support, company can market to the mass of a group by using the leaders endorsement. Household structures Household structure is defined as how many people lives in a household, what the ages of the occupants are, and what the household income is. Household structure is important to consumer behavior because the structure affects the consumption and purchasing patterns of the individuals within the home. Each member of the household structure also has a role in the decision-making process, and when marketers understand those roles, they can be more effective in helping those consumers make decisions on whether to purchase your product. Its also important to understand the difference between traditional and non-traditional households. This helps to determine each households needs, thereby marketing to those needs in a way thats appealing to the consumers.
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2.6 Deviant consumer behavior Behavior which differs from the norm or standard is defined as deviant behavior(George P. Moschis, 1989). These standards or norms are in the form of customs, manners, rules and regulations, laws, and mores. To the extent the individual's behavior deviates from such norms it is considered by society to be undesirable, unacceptable, or dysfunctionali.e., deviant. It is assumed that consumer tend to behave in particular manner based on above factors. Members' behaviors and those relevant criteria are based on normative theories of human behavior, reflecting efforts on the part of some society's members to regulate the behavior of other members so that certain desirable consequences follow. Deviancy then can also be defined in terms of frequency or degree to which the individual deviates from society's norms and prescribed behaviors. Thus, certain aspects of desirable or nonnative behaviors are not regulated; other aspects are regulated and are mandatory.(George P. Moschis, 1989) The distinction between regulated and non-regulated normative behaviors appears to be important, since deviance in each area would have different consequences upon the individual deviating from the norm and upon society. For example, product misuse or compulsive behavior can at best be termed as "negligent," but violating the law is a crime. Even for criminal behaviors, however, society has sanctions based upon the seriousness of the crime (e.g., parking ticket vs. arrest due to drunken driving).
Page | 11 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 3 Retail in India 3.1 Evolution of the Indian retail market The root of Retailing can be trace back to centuries; it started as a very primitive business but today has grown tremendously. Initially people used to dependent highly on agriculture, whatever they produce they consumed themselves. Later people were doing businesses with their neighbors. Goods were exchanged between them. This is known as barter system. Gradually people began to collect themselves to a given neighborhood, which provides a geographical place to do the exchange. This gave them more exposure and also helped to build more formalized system which helped in their development.. Gradually, a few more start to get together to a place that in turn creates a need for a common place. Later this common place was called a fair. With the passing of time the number of people doing businesses in a given fair increased, issues like security, transportation becomes a matter of concern. This semi-formalized system then gave birth to small-scale groceries, where people start to provide different mix of products to its consumers. Then there was a demand of choices of variety of products. The choices the customer had was limited, this was the beginning of the concept of everything under one roof. With the passing time there came a phase when joint families started separating and gave birth to new concept of Nuclear family. This nuclear family had different type of lifestyle and there was a requirement of more organized type of retail. This gap in retail format was fulfilled by introduction of current mom-and-pop stores, a ancestor of modern day retail (Dr. Shahid Akhter, 2012) If we compare India on global front, then India has the most unorganized retail market. Traditionally it is a familys livelihood, with their shop in the front and house at the back, while they run the retail business. More than 99% retailers operate in less than 500 square feet of shopping space
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Evolution of retail market in India Figure 3.1 # Evolution of retail industry in India Shopping experience/ efficiency Availability/ low cost/ Distribution Convenience Entertainment Historic/ Rural reach Traditional/ Pervasive reach Government support Modern Formats/ International Exclusive brand outlets, Hyper/Super markets, Department stores, Shopping malls PDS Outlets, Khadi stores, Aapna Bazaar, Cooperatives Convenience stores, Mom & Pop Kirana Weekly Markets Village fairs Melas Barter System Connivance Relationship based
Page | 13 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 3.2 Overview of Retail Industry in India India is one of the largest emerging markets, with a population of over one billion. It is one of the largest economies in the world in terms of purchasing power. Organized retailing has become more popular in big cities in India and most of the metropolitan cities and other big cities are flooded by modern organized retail stores. Many semirural areas have also witnessed entry of such organized retail outlets. India's retail sector is estimated to touch US$ 833 billion by 2013 and US$ 1.3 trillion by 2018, with a compound annual growth rate (CAGR) of 10%, which is quite lucrative The Indian Retail industry has grown at a CAGR of 14.6% for the period FY07-12. The said growth can be attributed to the growing Indian economy, increase in Private Final Consumption Expenditure (PFCE) and the change in consumption pattern of the Indian populace. The changing consumption pattern, in turn, primarily remains driven by higher standard of living, growing middle-class population, greater proportion of working women, increase in penetration levels of organized retail etc.(Rahman, 2012)
Graph 3.1# Retail Industry in India, Source: India Shopping Trends, 2008 - Technopak 0 200 400 600 800 1000 1200 2007 2008 2009 2010 2011 2012 2017 346 376 421 471 527 590 1011 U S D
B i l l i o n
Years Retail Industry In India
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Graph 3.2# Organized Retail Industry in India Source: India Shopping Trends, 2008 - Technopak Of all the retailing segments, the contribution of food & grocery is estimated to have remained the highest at 58% of the total retail sales during FY12 with the clothing & footwear segment remaining the second-largest contributor occupying 10.5% of the total retail pie during the same period. However in terms of growth figures, the entertainment, books & sports goods equipment segment is estimated to have outperformed the other retail segments, registering a CAGR of 21.3% during the period FY07-12.
0 50 100 150 200 250 300 2007 2008 2009 2010 2011 2012 2017 12 17 29 51 74 97 282 U S D
B i l l i o n s
Years Organized retail Figure 3.2 # Organized Retail
Page | 15 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR The organized sector accounts for a mere 5 per cent indicating a huge potential market opportunity that is lying in the waiting for the consumer-savvy organized retailer. Purchasing power of Indian urban consumer is growing and branded merchandise in categories like Apparels, Cosmetics, Shoes, Watches, Beverages, Food and even Jewelry are slowly becoming lifestyle products that are widely accepted by the urban Indian consumer. Organized retailing is witnessing a wave of players entering the industry. These players are experimenting with various retail formats. A number of large corporate houses like Aditya Birla, Bharti, Reliance, Pantaloon, Vishal, Tata's, RPG, Raheja's and Piramals's have already made their foray into this arena, with beauty and health stores, supermarkets, self-service music stores, new age book stores, everyday low price stores, computers and peripherals stores, office equipment stores and home/building construction stores. Today organized players have attacked every retail category.
Figure 3.4 # Different stages in organized retail 3.3 Opportunities for the organized retail sector in India Indias booming economy is a major source of opportunity. It is the fourth largest in the world in terms of purchasing power. India is the second fastest growing major economy in the world. India's huge population has a per capita income of Rs 44,345.
Page | 16 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR The proportionate increase in spending with earnings is another source of opportunity. With the Indian economy now expected to grow at over 8% and with average salary hikes of about 15%, manufacturers and retailers of consumer goods and services can expect a major boost in consumption. The Demography Dynamics are also favorable as approximately 60 per cent of Indian population is below the age of 30. Increasing instances of Double Incomes in most families coupled with the rise in spending power. Increasing use of plastic money for categories relating to Apparel, Consumer Durable Goods, Food and Grocery etc. Increased urbanization has led to higher customer density areas thus enabling retailers to use lesser number of stores to target the same number of customers. Aggregation of demand that occurs due to urbanization helps a retailer in reaping the economies of scale. With increased automobile penetration and an overall improvement in the transportation infrastructure, covering distances has become easier than before. Now a customer can travel miles to reach a particular shop, if he or she sees value in shopping from a particular location. 3.4 Challenges faced by Organized Retail Sector in India Although the Organized Retail market does offer a vast untapped potential, it should also be recognized that it is not that easy to operate in Retail market because of several problems. Retailers need to address the challenges to become successful on long term. The organized retail sector in India is still at a developmental stage, characterized by a very small number of players trying to create a new paradigm. To become a flourishing industry, the Indian retail sector has to attract leading Indian and foreign players to make substantial investments. Technology is one of the major challenges faced by organized retailers for efficient management. Shortage of skilled workforce in retail sector. Retail shrinkage is also one of the major challenges. Retail shrinkage is the difference in the value of stock as per the books and the actual stock available in the shop. The causes of retail shrinkage are mainly employee theft, shoplifting, administrative errors and vendor fraud. Effective online monitoring system need to be implemented.
Page | 17 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR Understanding customers in terms of customer behavior and loyalty is a difficult job. Retailers need to implement effective customer relation management and loyalty program. Distribution is an integral part of any retail organization. Delivering the right goods to the right place at the right time is main task of distribution. Retail majors are under serious pressure to improve their supply chain systems and distribution channels and reach the levels of quality and service desired by customers. The lack of proper infrastructure and distribution channels in the country results in inefficient processes. Organized retail outlets use very large volumes of electricity for a variety of applications from lighting, air conditioning, escalators, cold storing, billing systems, lifts etc. As a result of insufficient and inefficient power supply, a huge amount of private investment goes into ensuring power backups. This makes it very difficult for organized retail to grow. The retailers in India are paying very high cost for real estate. This increases the maintenance cost and reduce profit margins.
Page | 18 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 4 Current trends in Retail in India 4.1 Retailing formats in India Malls Specialty Stores Discount Stores Department Stores Hyper marts / Supermarkets Convenience Store MBOs E-trailer Malls: Mall is largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts they range from 60,000 sqft to 7, 00,000 sqft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Pyramid, and Pantaloon. Specialty Stores: Focusing on specific market segments and have established themselves strongly in their sectors. Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M are a couple of examples. Discount Stores: As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of scale or excess stock left over at the season. The product category can range from a variety of perishable/ nonperishable goods
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Department Stores: Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further they are classified into localized departments such as clothing, toys, home, groceries, etc.
Hyper marts/Supermarkets: Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food &grocery organized retail sales. Super Markets can further be classified into mini supermarkets typically 1,000 sqft to 2,000 sqft and large supermarkets ranging from of 3,500 sqft to 5,000 sqft. having a strong focus on food & grocery and personal sales. Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are
Page | 20 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium. MBOs: Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros.
E-trailers: providing online buying and selling of products and services.
Page | 21 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 4.2 Malls Malls known as shopping centers in many countries are perceived to be a huge store. In UK a malls means a road or an avenue with shops. Modern "car-friendly" strip malls developed from the 1920s, and shopping malls corresponded with the rise of suburban living in many parts of the Western World, especially the United States, after World War II. From early on, the design tended to be inward-facing, with malls following theories of how customers could best be enticed in a controlled environment. Similar, the concept of a mall having one or more "anchor" or "big box" stores was pioneered early, with individual stores or smaller- scale chain stores intended to benefit from the shoppers attracted by the big stores 4.3 Types of Shopping Malls In general, you will find only regional centers, superregional centers, and fashion/specialty centers on this Web site. Relatively few community centers were chosen, but appear here because the center may have, at one time, been considered a regional center. Only a few theme/festival centers were listed in heavily urbanized areas, such as San Francisco, because of their particular attractiveness or size. Finally, the new designation, lifestyle center, displays because of their classic-mall type appearance even though they are without a classic-mall anchor store. Fashion/Specialty Centers: Characterized as higher end, fashion oriented centers between 80,000 and 250,000 sq. ft.
Community Centers: Characterized as having between 100,000 and 350,000 sq. ft. usually two types of anchors, such as a discount department store or large specialty/discount apparel store.
Page | 22 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR Lifestyle Centers: A new designation that has a loose definition. Generally, it's a center that does not have an anchor tenant in the classic sense (that is, a department store). However, lifestyle centers increasingly have a cinema as a major tenant. Others have just a small collection of exclusive shops. Outlet Centers: Characterized as manufacturers' outlet centers between 50,000 and 400,000 sq. ft. Regional Centers: Characterized as having between 400,000 and 800,000 sq. ft. usually two or more anchors, such as a conventional department store, junior department store, mass merchant, discount department store, or fashion apparel store. Superregional Centers: Characterized as having over 800,000 sq. ft. usually three or more anchors, such as a conventional department store, junior department store, mass merchant, or fashion apparel store. Theme/Festival Centers: Characterized as tourist-oriented, retail and service centers between 80,000 and 250,000 sq. ft.
Page | 23 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 5 High Street Phoenix 5.1 High street phoenix in brief
Page | 24 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR High Street Phoenix, (HSP) the first consumption center developed in India, covers 3.3 million square feet of space and houses over 500 brands , variety of F&B, entertainment, commercial and residential complexes. Pioneered by The Phoenix Mills Co. Ltd. and led by young Managing Director, Atul Ruia and his team of professionals. At HSP, each zone has been specifically designed and been put together in keeping with international experience and an answer to emerging urban agglomerations typically defined as 'mixed used developments'. The Phoenix Mills Limited successfully converted a defunct, disintegrating textile mill into the highly productive High Street Phoenix, now regarded as Mumbai's premier lifestyle destination. Today High Street Phoenix boasts the reputation of being the flagship for fledgling shopping and entertainment hubs across the country. High Street Phoenix has become a model for the rest of the country in terms of retail led development centers.
From haute couture at Quorum to monthly household shopping at Big Bazaar, SF Jeans and Lifestyle, High Street Phoenix boasts of a completely congenial environment. There's something here for everyone.
Page | 25 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR The predominantly retail-led High Street Phoenix soon joined forces with Galaxy Entertainment and The Bowling Co., Mumbai's largest bowling alley and gaming arcade, to add the crucial element of entertainment to the burgeoning complex. The latest attraction is an 8-screen PVR cinema multiplex. Food and beverages are available in the form of fine dining restaurants like 'Monza' and 'Lemon Grass Caf offset by 'chaat' stalls. Bars like 'The Sports Bar' and 'Brew Bar' and discotheques like Ra' and 'Aaziano' are popular nightspots within the complex. 5.2 Different Mall in HSP Palladium Grand Galleria Skyzone Courtyard High Street Unit (HSU)
Page | 26 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 6 Research Methodology 6.1 Literature review Michael Solomon proposed five types of shoppers which he identified from his study on customers of western countries. The following are the five types: The economic shopper: A balanced and more coherent kind of customer who tries to get the best deal so as to utilize his/her money efficiently and effectively. The personalized shopper: Customer who will only shop at a store with which he/ she has formed a strong attachment. The ethical shopper: Customer is very conscious and concerned about the local stores and will prefer them over the big retail giants. The apathetic store: Customer who doesnt like to do shopping but does it because he/she consider as a necessary evil. The recreational shopper: For this customer, shopping is a means of socializing, spending leisure time and for him/her shopping is fun. With changing in lifestyles and Increase in high disposable income, customers are expecting a better quality and service. The word Shopping doesnt only means The purchasing of goods from stores now days; its a complete experience in itself. Customers want to feel delighted with the services and extra add on provided by the shopping mall. They look for entertainment, dinning, sharing a coffee, hanging out with friends and many more activities along with shopping. It has been observed and stated in many studies that a consumer's motive for store choice is a function of many variables. Although elements and factors which influences differ, factors like store location, store design and physical facilities, tenant mix, popular brands, parking facilities, layout, merchandise assortment, advertising and sale promotion, store personnel, customer services and clientele (social-class membership) exert great influence on store choice. Product variety and convenient timings seem to be primary impression about the store, consumers carry with them. (Richard Michona, 2005)In their study Found out that the architectural design of the mall was the dimension which contributed the most to the mall excitement, he also mentioned that interiors of the mall played pivotal rule and had a very strong influence on customers desire to stay in the mall. There is a strong correlation between interior designs of the mall and amount of time spent by customers in the mall. They also found a positive and strong
Page | 27 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR relationship between the mallslayout and desire to stay/mall excitement. This tells us that customers not only evaluate the product assortments inside the mall but they also do look for the intangibles that the mall offers like colors, ambience, fragrance, lighting and music. According to a study conducted by (Rupesh Kumar Tiwari, 2012)a better Interior design actually helps to elevate the image of the mall over a period of time. Todays Malls have seen a paradigm shift in the kind of interior which the designers choose for their malls; from a very relaxed environment to architecturally lavish, affluent and sophisticated design. Prior researches suggest that use of light colors exhibits a sense of spaciousness and calmness whereas bright colors impart a sense of excitement among the minds of the consumers; moreover, even the use of serene music along with warm colors helped the mall by increasing the customers desire to stay. All in all, atmospheric characteristics are basically an extension to the product assortments and could be manipulated positively to enhance buyers mood and comprehension, hence affecting behavior, and to elevate the mall image. (Reid & Brown, 1996)proposes that the customers orientation towards shopping may shed light into the way he/she indulge in shopping and it may also tell the reason why he/she chooses a particular retail store (including shopping malls). This would be of great help to marketers to design the malls in a way so as to increase the shopping experiences of the customers and copping up with the expectations and needs of the mall customers. 6.2 Objective To understand consumer perception of High Street phoenix with reference to its Infrastructure To understand the satisfaction level of the Consumers To identify any type of problems faced by them To find the areas of improvement by which the business share can be increased To find out the satisfaction level of the Consumers by the services provided by the mall
Page | 28 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 6.3 Target respondent The target respondents are the customers of High street phoenix mall. These customers had availed for valet parking at High Street phoenix and registered their name and phone no. in client database. 6.4 Sample plan Segment Sample Size Recruitment HSP Customers 110 Database
The Sampling design used is Simple Random Sampling. 6.5 Research design Exploratory research, Analytical. Primary Data is collected for research by taking interviews of HSP customers telephonically. This is a Blind Study i.e. it wasnt revealed to the respondent that the study is being done on behalf of HSP.
Page | 29 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 6.6 Formulation of Hypothesis: H1: There is no significant relationship between Customer perception and different attributes of infrastructure. H2: There is a significant relationship between perception of customer about infrastructure and customer satisfaction. H3: There is a significant relationship between perception of customer about Image/Quality and customer satisfaction. H4: There is a significant relationship between perception of customer about loyalty towards HSP and customer satisfaction. H5: There is a significant relationship between customer recommending others to visit HSP and Perception of customer about overall infrastructure of HSP. H6: There is a significant relationship between customer desired to visit HSP and customer satisfaction.
Page | 30 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 7 Finding and Analysis 7.1 Demographic details (part I) Gender Of the total 110 respondent, 63 % (69) are males and 37% (41) are females.
Graph 7.1 # Gender profile of respondent Stages in life Stage in life Code single, not supporting family 1 single, supporting family 2 Married, without children 3 Married, with youngest child in the age 0 5 4 Married, with youngest child in the age of 6 20 5 Married, with youngest child in the age 21 - 25, who is dependent on you? 6 Married, with children who are not dependent on you 7 Retired 8 Others 9
The largest sets of respondent are found in 1 st category i.e. Single, not supporting family which is 30% of total sample size. Which is followed by Single, Supporting family with 63% 37% Male Female
Page | 31 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 22%? The 3 rd category is Married, without no children which accounts for 17%. This shows a clear trend that the large number of High Street Phoenix customer are mostly single individual (52%) compared to married (48%).
Graph 7.2 # Current stage in life
Age Profile of customer
Graph 7.3 # Age profile of respondent
30% 22% 17% 15% 13% 3% Current stage in life 1 2 3 4 5 6 7 13% 55% 26% 6% Age profile less than 25 years 25 - 34 years 35 - 44 years 45 - 54 years 55 - 65 years greate than 65 years
Page | 32 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR A large number of respondent belong to age group 25 34 years which is 55%. It is followed by respondent falling in age group of 35-44 years (26%), Less than 25 years (13%), 45- 54 years (6%). 7.2 Frequency of visit/Most Preferred mall (Part II) Frequency of visiting High Street Phoenix
Graph 7.4 # Frequency of visit Out of 110 respondents, 53% respondent visited once in between 8-15 days. Whereas respondent visiting once between 15-30 days are 16% and respondent visiting at least once in 30 days are 31% Did you shop in your last visit? Out of 110 respondents, 85% did shopping during last visit at HSP. This indicates shopping is the one of the main reason which attracts customers to HSP. 53% 16% 31% Frequency of Visit once 8- 15 days once in 15 - 30 days once in 30 days
Page | 33 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR
Graph 7.5 # Shopping at HSP Most visited Zone in HSP
Graph 7.6 # most visited zone in HSP From above graph we can conclude that 80% of respondent made it a point to visit Palladium during their visit to HSP which is closely followed by Courtyard with 67% of respondents. And approximately 35% of respondents visited rest of the zones in HSP. From this graph we conclude that Palladium is one of the most attractive and popular zone in HSP. And maximum of respondents are attracted to HSP because of the Palladium.
85% 15% Did you shop at HSP? Yes No 0 20 40 60 80 100 120 42 34 44 74 88 28 R e s p o n d e n t s
Zone in HSP
Page | 34 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR Most Preferred mall Out of 110 respondents, 83.63% selected HSP as most preferred mall which I followed by Inorbit mall, Malad with 3%. Infinity (Andheri), Infinity 2 (Malad) and Oberoi mall (Goregaon) were selected by 2.7% of respondent. Given a choice to visit various mall across Mumbai, Maximum of the respondent preferred HSP over other mall. This indicates a strong liking towards HSP among respondents.
Graph 7.7 # most preferred mall
92 3 5 3 1 3 3 Most preferred Mall
Page | 35 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR
Second most preferred mall
Graph 7.8 # Second most preferred mall Respondent selected Infinity 2 (Malad) as second most preferred mall across Mumbai with 17.27%. Which is closely followed by Atria mall (Worli) with 13.63% and then by Inorbit mall (Malad) with 11.81%.This indicates the close competitor of HSP is Infinity mall (Malad).
11 8 13 1 2 7 2 15 19 16 Second most preferred mall
Page | 36 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 7.3 Quality and image section (Part III) Overall experience of visiting the HSP At alpha = 0.1 (10%), the critical value is 1.533 for = 4. If the test stat exceeds the critical value, we reject the null at 10% significance level. No. Question Mean Standard Deviation Z-test Z=x-/std dev Ho status 1 Please tell me how would you rate the overall experience of visiting the mall? 3.8 0.833
-1.00192
Accepted 2 Please rate the time and effort that you spend in visiting HSP? 3.16 0.642 -3.07053
Rejected 3 Please tell me how would you rate HSP on the value received when visiting the mall? (by value we mean what you spend in terms of your time and effort in relation to your overall experience of visiting mall? 3.58 0.747 -1.77475
Rejected 4 HSP is a reputed, well known mall 4.38 0.541 -3.01372
Rejected 5 HSP has all popular brands under one roof 4.36 0.519 -3.34713
Rejected 6 HSP is comparable to international standards 3.78 0.734 -1.66959
Rejected 8 HSP is an up-market mall 4.19 0.776 -0.96464
Accepted 9 HSP is a convenient to shop at 3.98 0.801 -1.01376
Accepted 10 HSP is the mall that I visit for all my needs 4.11 0.812 -0.81611
Accepted 11 HSP is one of the best malls in the city 3.98 0.77 -1.21481
Accepted 12 HSP is the mall I prefer over other malls 4.07 0.725 -1.44724
Accepted Exhibit 7.1 # Hypothesis of overall quality and Image
Page | 37 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR The Ho is accepted for overall experience of visiting the mall. This indicates the customer of HSP is satisfied with the overall experience they get visiting the HSP mall. The Ho for the time and effort spend in visiting HSP is rejected. Customers of HSP find it to tedious and they have to invest lot of time and efforts to move around to get the right brand they want. The HSP is somewhere lacking in its value proposition. The Ho for perceived value is rejected. The management should consider its current offering as value proposition and come out with a solution which not only adds value but also delight customers. This will help HSP evolve strategically. We reject Ho for HSP being reputed mall. The customers of HSP dont perceive it as a reputed brand. We also reject Ho for having most popular brands under one roof. The brands are widely scattered and a prototype branding is done. With all high end brands are placed in Palladium mall and low and mostly Indian brands are placed in SkyZone. And inclusion of retailers like Big Bazaar, Pantaloons and Lifestyle degrades its image and a customer doesnt perceive it as a stop for all popular brands. We also reject Ho for HSP being at par with international standards. At = 4, the customers doesnt perceive the quality of service received at par with what they receive in international malls. Ho for over all enjoyable shopping experience is also rejected. We accept Ho for all other attributes of Image and quality of HSP, at = 4. If being satisfied customers perceive HSP as the best mall in town and they regard as mall they visit for all their needs. Customers also regard HSP as most preferred mall to visit as we had seen earlier around 82% customers said they prefer HSP over any other mall. One of the noticeable things is in spite of being dissatisfied with the overall shopping experience customers still have perception that its convenient to shop at HSP. We have also seen that over 85% customers did shopping in their last visit to the mall. The HSP is able to attract customers with its shopping factor and shoppers find it convenient to shop at HSP, but they are dissatisfied with the kind of overall experience they are getting at mall. This can be problem in long run as customers negative motivation about shopping experience will demotivate them and increase dissatisfaction.
Page | 38 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 7.4 Loyalty and recommendations (Part IV) At alpha = 0.1 (10%), the critical value is 1.533 for = 4. If the test stat exceeds the critical value, we reject the null at 10% significance level. No. Question Mean Standard Deviation Z-test Z=x-/ dev Ho Status 1 You are very loyal to HSP 3.88 0.854 -0.80384
Accepted 2 Personally you feel a strong sense of attachment to HSP 3.97 0.851 -0.73035
Accepted 3 It would make a lot of difference to you if you could not visit? 3.57 0.795 -1.46145
Accepted 4 You will recommend HSP as a place to visit for shopping and eating 4.14 0.76 -1.12316
Accepted 5 You will continue to visit HSP mall in future 3.89 0.708 -1.75972
Rejected 6 All other things remaining the same I will visit the mall 3.54 0.723 -1.9925
Rejected Exhibit 7.2 # Hypothesis of overall Loyalty and recommendations Ho for the factor continue to visit mall in future and others things remaining the same I will visit the mall is rejected, at = 4. These clearly indicate if customers are not satisfied then they clearly refuse to visit the mall irrespective of popular brands and kind of services HSP is providing to its customers. We accept Ho for being loyal to HSP, Strong sense of attachment to HSP, recommending HSP as place to visit for shopping and eating. The customers if satisfied is more likely to be loyal to the mall and even feel more strong sense of attachment to HSP, they attach themselves with Superior status of the mall. Customer has a perception that the HSP is of superior status and visiting this mall increase their status symbol.
Page | 39 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR
7.5 Infrastructure Mall Location, Layout and Facilities (Part V) At alpha = 0.1 (10%), the critical value is 1.533 for = 4. If the test stat exceeds the critical value, we reject the null at 10% significance level.
No. Question Mean Standard Deviation Z-test Z=x-/Std dev Ho Status 1 Taking into consideration all your experiences, how would you rate the mall location, layout and facilities of HSP 3.57 0.927 -0.74499
Accepted 2 Proximity of the mall to the nearest station/bus depot/taxi stand 3.51 0.834 -1.28616
Accepted 3 Ease of access into mall 3.07 0.979 -1.0158
Accepted 4 Adequacy of signage and directions at the mall 3.02 0.942 -1.22628
Accepted 5 Layout of the mall 3.3 0.948 -0.91941
Accepted 6 Ease of movement in the mall 3.37 0.997 -0.64204
Accepted Exhibit 7.3 # Hypothesis of overall Infrastructure Mall Location, Layout and Facilities Ho is accepted for all the attribute of infrastructure, i.e. Infrastructure as whole, Proximity to the mall, Ease of access into mall, Adequacy of signage directions, Layout of the mall and easy of movement in the mall, at = 4. The customers are satisfied with the overall infrastructure of the mall as whole as well as different attributes of it.
Page | 40 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 7.6 Hypothesis (Part VI) H1: There is no significant relationship between Customer satisfaction and different attributes of infrastructure. Regression analysis of Customer satisfaction on different attributes of infrastructure. Regression Coefficients Intercept 1.280562962 Proximity of the mall 0.182438558 Ease of access 0.258869567 Signage and direction 0.262708288 Layout of mall -0.023327804 Ease of movement in mall 0.115333366 Correlation of coefficient r = 0.906125 R = 0.821063 82.11% There is a very strong positive correlation between customer satisfaction of people visiting HSP and perception about different attributes of infrastructure. Around 82.11% of customer satisfaction can be explained with the help of various attributes of Infrastructure. 25.89% variance in the results is due Ease of access in the mall and 26.27% variance is due to Signage and direction in the mall. The variance of both this factors explains that this two are critical factors. Both factors represent the movement inside the mall. The customers find it difficult to move inside the mall. The management of the mall has to work on these factors to have an increase the overall satisfaction level. H2: There is a significant relationship between perception of customer about infrastructure and customer satisfaction.
Page | 41 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR customer satisfaction Perception about I nfrastructure customer satisfaction 1 Perception about Infrastructure 0.87175 1 There is a strong positive correlation between perception of customer about infrastructure of HSP and Customer satisfaction. Customer Satisfaction of HSP customers is directly proportional to perception of customer about infrastructure. Correlation coefficient = 0.7599 ~ 76% Significance of a Correlation Coefficient P-value = 0.001 Since P-value is less than 0.05 (0.05>0.001), we reject Ho. Correlation coefficient is significant and the sample holds true for whole population H3: There is a significant relationship between perception of customer about Image/Quality and customer satisfaction. Image Section Reputati on Popula r Brand s Interna tional Standa rds Enjoy shopping experienc e Up- Market mall Shoppi ng conveni ence Multi ple usage Best Mall in the City Most prefe rred mall r 0.801507 0.7840 8 0.82817 8 0.827077 0.81178 0.8745 0.859 5 0.877 7 0.843 89 R 0.6424 0.6148 0.6858 0.6848 0.6589 0.7648 0.735 8 0.77 0.712 1 % 64.24% 61.48 % 68.58% 68.48% 65.89% 76.48% 73.58 % 77% 71.21 % p-value 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 Exhibit 7.4 # Correlation between customer satisfaction and Image The result of correlation between customer satisfaction and various attributes of Image/quality shows there is a very strong positive correlation between customer satisfaction
Page | 42 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR and consumer perception of Image/quality (Reputation of mall, popular brands under one roof, up to the mark of international standards, enjoying shopping experience, being up- market mall, shopping convenience, multiple need satisfied at mall, being rated best mall in the city, being most preferred mall in the city) Significance of a Correlation Coefficient P-value = 0.0001 Since P-value is less than 0.05 (0.05>0.001), we reject Ho. Correlation coefficient is significant and the sample holds true for whole population H4: There is a significant relationship between perception of customer about loyalty towards HSP and customer satisfaction
There is a very strong positive correlation between customer satisfaction and Loyalty of customer towards HSP. This signifies if customer are satisfied visiting they aspire to stay loyal to HSP and have a desire to visit HSP again and again. Correlation coefficient = 0.8725~87.25% 87.25% of customer loyalty towards HSP depends upon customer satisfaction. Significance of a Correlation Coefficient P-value = 0.0001 Since P-value is less than 0.05 (0.05>0.001), we reject Ho. Correlation coefficient is significant and the sample holds true for whole population H5: There is a significant relationship between customer recommending others to visit HSP and Perception of customer about overall infrastructure of HSP
Page | 43 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR
Recommends Perception about I nfrastructure Recommends 1 Perception about Infrastructure 0.834408 1
There is a strong positive correlation between customers perception about infrastructure of HSP and they recommending their social group to visit HSP. Correlation coefficient = 0.6964~69.64% Only 69.64% customers would recommend their social group to visit HSP depending upon their perception about Infrastructure of the mall. Significance of a Correlation Coefficient P-value = 0.0001 Since P-value is less than 0.05 (0.05>0.001), we reject Ho. Correlation coefficient is significant and the sample holds true for whole population H6: There is a significant relationship between customer desired to visit HSP and customer satisfaction. customer satisfaction Desire to visit again customer satisfaction 1 Desire to visit again 0.802474 1
There is a strong positive correlation between customer satisfaction and their desired to visit the HSP. Correlation coefficient = 0.64396~64.40%
Page | 44 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 64.40% customer have desired to visit HSP in future depends on their satisfaction level with current practices and service offered. Significance of a Correlation Coefficient P-value = 0.0001 Since P-value is less than 0.05 (0.05>0.001), we reject Ho. Correlation coefficient is significant and the sample holds true for whole population
Page | 45 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 8 Key Findings 55% of the customer visiting HSP are less than 35 years of age 52% of customers visiting HSP are single, of which 22% are single and supporting their family 53% respondent visited once in between 8-15 days, this indicates that a major chunk of the crowd made a point to revisit the mall at least within 15 days 85% of customers visited HSP did shopping in their last visit Palladium is most visited mall in HSP, and have a highest brand recall with 80% of populations visiting Palladium in their last visit HSP is most preferred mall across Mumbai with 83.63% of customers preferring it over other malls Infinity mall 2 (Malad) is second most preferred mall across Mumbai. And it is the close competitor of HSP directly 25.89% variance in the results is due Ease of access in the mall and 26.27% variance is due to Signage and direction in the mall Customers are dissatisfied with HSP with unable to provide complete shopping experience at the same time they find it convenient to shop at HSP Customers doesnt perceive that HSP is a reputed mall Customers have a perception that brands in HSP is highly polarized and doesnt have all popular brands under its roof Customers agree being loyal to HSP and wish to stay loyal Customers have agreed to keep visiting HSP in future also if they are satisfied Customers find it difficult to access to mall. This attribute of infrastructure is demotivating factor for customers visiting HSP Customers find that the signage and directions in the mall are not upto the mark, and it is also inadequate. This attribute of infrastructure is demotivating factor for customers visiting HSP There is a very strong positive correlation between customer satisfaction of people visiting HSP and perception about different attributes of infrastructure There is a strong positive correlation between perception of customer about infrastructure of HSP and Customer satisfaction There is a very strong positive correlation between customer satisfaction and consumer perception of Image/quality
Page | 46 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR There is a very strong positive correlation between customer satisfaction and Loyalty of customer towards HSP There is a strong positive correlation between customers perception about infrastructure of HSP and they recommending their social group to visit HSP There is a strong positive correlation between customer satisfaction and their desired to visit the HSP
Page | 47 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 9 Recommendations and Suggestions The customers are highly dissatisfied with the ease of access (Ease of access is the level of effort required in order to find something, or gaining access to something in order to use it) to mall. And also with the inadequate of signage and directions in the mall. The management can increase number of signage and various others posters indicating the directions inside the mall. They can show complete layout of the malls at various locations and give complete map of the place. They can give a map of HSP at helpdesk or at various entry points, which can be given to customers whenever they required. One of noticeable things is all attributes of infrastructure is rated between 3-3.5, which is low compared to overall satisfaction of consumers and Image of the mall. Palladium is most visited mall inside HSP compare to other malls. One of the reason for this may be the infrastructure of Palladium is far better than compare to other malls. The customer satisfaction and loyalty can be increased if there is a change in infrastructure of others malls and they are par with Palladium. The maximum crowd visiting HSP is below 35 years of age and most of them are single. The promotional events and marketing activities should be designed keep in mind this segment. Maximum of the customers visited HSP for shopping and very few visited HSP for only eating. This indicates there is very low contribution of restaurants and fast food eateries to pull crowd towards mall. The management of mall can change its tenants mix and get few popular fast food and fine dining restaurant so that they are able to attract more number of crowd. In research it is been found that there is a strong positive correlation between perception about infrastructure of HSP and customers recommending its social group to visit mall. This indicates if the customer is dissatisfied with the infrastructure of the mall its going to affect the word-of-mouth publicity and the mall will lose on positive endorsement which would generate more walk in will be in danger. Customers have a perception that there are not popular brands under one roof in HSP. Consumers feel that in HSP, brands are highly polarized. All international and big brands are placed in Palladium and Indian and sports brands are in Sky Zone. With this the mall management is degrading its own other branch. There should be uniform distribution of brands between all the malls in HSP. Most of the customers of HSP are
Page | 48 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR of affluent class, Retail brands like Big Bazar, Pantaloons and Lifestyle are brands for middle and lower middle class. Customers feel these brands degrade overall status of HSP. Thats the reason customers have raised question about reputation of the mall. In spite of being dissatisfied with overall shopping experience, customers are still loyal to HSP, desired to visit again in future and ready to recommend to its social group. The shopping is a major factor which attracts customers to the mall. If HSP wants to have a sustainable growth it has to change its value proposition. 10 Lessons Leant/ Learning Outcomes I was given role of Team leader for this project(Customer Satisfaction Index: High Street Phoenix, Job no.: BC90060 ) by IMRB International The work profile included Managing a team of 8 members Co-coordinating with senior management and team members Briefing and mock calls of the interviewers Making Roasters Making available resources available for the team Planning with team and management to assign targets and assists team to achieve Check for discrepancies in the filled questionnaire Scrutinize and back check the filled questionnaire Submission of error free questionnaire before due date Status quo of the quotas, keeping objective of the study in the mind The leanings Team management IMRB provided a platform to discover my leadership qualities Importance of completion of project before due dates Resolving team conflicts Planning and executing a strategy to achieve targets Working in organization limits and culture Importance of having control over team activities
Page | 49 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 11 Limitations of the study The database provided by HSP was obsolete and many phone nos. didnt exited or were wrong numbers Some number mention in the database belong to DNB & DNC list, People were uncooperative Limited resources available Average interview time would last for 20 mins. Long interview process did made customers tedious and some customers were hesitate to give further interview
Page | 50 Javed Shaikh PGDM - Marketing A study on consumer perception on Infrastructure with special reference to HSP TIMSR 12 Bibliography Dr. Shahid Akhter, I. E. (2012, January). organized Retailing in India Challenges and Opportunities. International Journal of Multidisciplinary Research, no. 2(no. 1), 281-291. George P. Moschis, D. C. (1989). Deviant Consumer Behavior. Advances in Consumer Research, 17, 732-736. Kotler, P. (2008). Marketing Management : A South Asian Perspective , 13Th Edition (13 ed.). Pearson Education India. Perner, L. (2003). CONSUMER BEHAVIOR: THE PSYCHOLOGY OF MARKETING. Retrieved July 08, 2012, from http://www.consumerpsychologist.com/. Rahman, T. (2012, February). Organized Retail industry in India - Opportunities and Challenges. IJRFM, 2(2), 82-94. Reid, R., & Brown, S. (1996, April 01). I hate shopping! An introspective perspective. International Journal of Retail & Distribution Management, no. 24(no. 4), 4 - 17. Richard Michona, J.-C. C. (2005, April). Mall atmospherics: the interaction effects of the mall environment on Shopping behavior. Journal of Business Research, 576 - 583. Rupesh Kumar Tiwari, A. A. (2012, December). Understanding the consumer behavior towards shopping malls in Raipur city. International Journal of Management & Strategy, no. 1(no. 1). Types of Shopping Malls. (n.d.). Retrieved July 10, 2012, from http://www.bigmallrat.com/index.html.