Customer Satisfaction

At
Shoppers Stop
PGDM Programme
Term-1
Research Methodology-1
Submitted to: Prof. Dhruv Brahmbhatt
Submitted by:
Name

Roll No.

Ghelani Nisarg

P1613

Mehta Virang

P1625

Shah Parth

P1645

Shah Ravi

P1646

Yadav Harsh

P1659

Submission Date: 4/10/2016

N.R Institute of Business Management

Acknowledgement:
The toughest of endeavors in this world is not possible without the support of a
helping hand which guides and motivates a person to take on any challenge head
on. Inputs from such helping hand are always like very essential because more
often or not certain mistakes which go unnoticed from our eyes. We express our
thankfulness toward our faculty Prof. Dhruv Brahmbhatt for giving such a nice
opportunity to work something related to practical exposure of retail industry &
extending his untiring guidance to us, by constantly discussing the project matter
and helping us in clarifying our thinking in several pertinent issues and providing
a meaning full insight into the subject.

Part-I: Executive Summary:

Introduction of research:
Customer satisfaction, a term frequently used in marketing, is a measure of how
products and services supplied by a company meet or surpass customer
expectation. Organizations need to retain existing customers while targeting noncustomers. Measuring customer satisfaction provides an indication on of how
successful the organization is at providing products and/or services to the
marketplace.
Customer satisfaction is measured at the individual level, but it is almost always
reported at an aggregate level. It can be, and often is, measured along various
dimensions.

Introduction of organization:
Shoppers Stop is an Indian retailing company promoted by the K Raheja Corp
Group, started in the year 1991 with its first store in Andheri, Mumbai.
Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the
Emerging Market Retailer of the Year Award", by World Retail
Congress at Barcelona, on April 10, 2008.Shoppers Stop is listed on the BSE.As
of 2013, Shoppers Stop has 73 stores in India.
Shoppers Stop began by operating a chain of department stores under the name
Shoppers Stop in India. Shoppers Stop has 74 stores across 35 cities in India.
Specifically, Shoppers Stop stores retails clothing, accessories, handbags, shoes,
jewelry, fragrances, cosmetics, health and beauty products, home furnishing and
decor products.
Shoppers Stop launched its e-store with delivery across major cities in India in
2008. The website retails all the products available at Shoppers Stop stores,
including apparel, cosmetics and accessories. Shoppers Stop opened stores in
Amritsar, Bhopal and Aurangabad.
Shoppers Stop also launched its application in February 2016. This completed
the first phase of its omni-channel strategy.

Background of the problem:

The Indian retail industry is facing tough competition with the entry of lifestyle,
pantaloons, reliance trends etc. All companies are constantly engaged in gaining
the attention of consumers by introducing new promotional schemes, new
products, various type of discounts.
Purpose of conducting this research are as follows:
1. To get the actual idea about the experiences of customers and their
satisfaction level with Shoppers Stop.
2. To find out whether the customers are satisfied with services provided
by Shoppers Stop.

Statement of the problem:

To study Customer Satisfaction at Shoppers Stop.

Research objectives:
Primary objectives:
1.To study the customer satisfaction in shoppers stop

Secondary objectives:
1. To study marketing strategy of shoppers stop
2. To study of effectiveness of sales promotion in shoppers stop
3. To find out what improvements should be done in case of customer
dissatisfaction.
4. To find out whether the customers would recommend others to buy
from Shoppers Stop

Research Questions:
1.
2.
3.
4.

What do you do for customer satisfaction?

What training you provide to employees to satisfy your customer?
What kind of marketing you do for attracting customers?
How do you measure customer satisfaction?

Hypothesis:
H0: Sales promotion & marketing strategies affect the customer
satisfaction of Shoppers Stop
H1: Sales promotion & marketing strategies not affect the customer
satisfaction of Shoppers Stop

Significance of the study:

Research is important for various parties, which are given below:
1. Research is important for the company, it provided data about the
customer satisfaction for the company. It helpful to the company in taking
decision regarding customers.
2. The research is also important to the researcher. It helps the researcher in
knowing various aspects regarding customers.
3. The research is important to the customers. On the basis of research
company may take decision regarding improve customer satisfaction. So
it is beneficial to the customer.
4. The research is important to the competitors. It helps the competitors in
knowing how to satisfy the customers & what marketing strategies to be
used.

Literature Review:
Grigoroudis, E and Siskos, Y (2009) provide definition for Customer upon
two approaches: With reference to loyalty, A Customer is the person that
assesses the quality of the offered products and services and on process
oriented approach, the customer is the person or group that receives the work
output.
Schiffman and Kanuk (2004) defines customer satisfaction as The individuals
perception of the performance of the product or service in relation to his or her
expectations.
Increasing customer satisfaction has been shown to directly affect companies
market share which lead to improve profits, profitable recommendation, Loir
marketing expenditures (Reichheld 1996; Heskett 1997) and greatly impact the
corporate image & survival (Pizam and Ellis 1999).
According to Technical Assistance Research Programs (1986), 95% of
unsatisfied customers don't complain but simply stop buying from a merchant.
According to The loyalty effect' by Reichheld (1996), Even a 5% reduction in
the customer defection rate can increase profits by 25% to 85%, depending on
the industry.
According to the Kiesler (1968); Lastovicka and Gardner (1977), Store
Commitment is the pledging or binding of an individual to his/her store choice.
According to the Grnroos (2001), The quality of service interactions between
the service staff / provider and the customer determines the satisfaction toward
the service.
According to the Kotler & Keller (2009), When a consumer/customer is
contented with either the product or services it is termed satisfaction.
Satisfaction can also be a persons feelings of pleasure or disappointment that
results from comparing a products perceived performance or outcome with
their expectations.
According to the Levy (2009) & NBRI (2009), Measuring customer
satisfaction could be very difficult at times because it is an attempt to measure
human feelings. It was for this reason that some existing researcher presented

that the simplest way to know how customers feel, and what they want is to
ask them this applied to the informal measures.

Limitations of the study:

1.
2.
3.
4.

A very short of time for research.

Limited coverage area for Ahmedabad only.
Lack of sufficient funds to cover the whole universe as sample.
The respondents did not have sufficient time for giving information
for such type of research.
5. We have honestly and sincerely tried to present the facts & figures but
some error still might have cropped up.

Research Methods & Procedures:

Research Design:
A research design will typically include how data is to be collected, what
instruments will be employed, how the instruments will be used and the
intended means for analyzing data collected.
There are two research designs used in this report:
1. Descriptive Research- Here the customer satisfaction level of the
customers of Shoppers Stop in Ahmedabad is to be observed.
2. Causal Research- Here the relationship between marketing strategies &
promotional schemes & customer satisfaction. We are doing causal
research because we want to that are marketing strategies & promotional
schemes affects the customer satisfaction level.

Sampling:
1.Population: Population size is 1000 customers of Shoppers Stop in
Ahmedabad.
2.Sampling Unit: Shopper stop- Alpha One Mall & CG Square
3.Sample Size: 300 customers. The sample size of a survey most
typically refers to the number of units that were chosen from which data
were gathered.
4.Sampling Method: Non Probability (Convenience Sampling)
A Sampling Method is a procedure for selecting sample members from a
population. In the research we have to take the response from all the customers
who visit Shoppers Stop- Alpha One & CG Square. So, convenience sampling
method is appropriate.
Research Instrument: Questionnaire

Data Collection Sources:

There are Primary Data & Secondary both types of data used in the research.
Primary data are data freshly gathered for a specific purpose or for a specific
research project. Secondary data are data that were collected for another
purpose and already exist somewhere.

1. Primary data:
Observation method
Interview method
Through questionnaires

Through schedules
In this report primary data was collected through interviews, observations &
questionnaires.
2. Secondary Data: Secondary data sources are collected through
journals, books, websites etc.
In this report secondary data was collected through websites, journals &
annual reports.

Data Analysis:
There are many tools for data analysis which can be helpful to the
researchers in their study. Some of them are MS Excel, Minitab, SAS etc.
In our report we have used MS Excel for graphical representation of the
data through charts.

Suggestions:
Overall shoppers stop should leverage on all its strong point and let more
customer START SOMETHING NEW. Because after all customers are
the heart and soul of business, like any other.
1. They should introduce more schemes, discounts, sales to increase the
2.
3.

4.
5.

6.

sales.
They should introduce Low Rate Brands which will attract the middle
class customers also or brands for masses.
Shoppers Stops competitors used aggressive medium of advertisement
like television commercial ads, thus to gain a competitive advantage over
the competitors Shoppers Stop should also use such medium of
marketing.
Shopper Stop must pay attentions on customers suggestions and
complains.
Shopper Stop should improve/upgrade its employees product knowledge,
market situation and its competitors knowledge by giving proper training
to employee.
Shopper Stop should know its customer satisfaction level throughout doing
periodic surveys. Periodic surveys can treat customer satisfaction directly.

10

Bibliography:
1.agencyfaqs! M. (2008, April 24). Shopper's Stop stops to do something new.
Advertising.
2.Bureau, E. (2015, Sept 23). Shoppers Stop partners with FreeCharge Wallet.
Retail.
3.Divyankap. (n.d.). divyankap/retail-case-study-shoppers-stop. Retrieved from
Divyankap: http://divyankap.blogspot.in/2016/06/retail-case-study-shoppersstop.html
4.HAMEED, S. (2015). A Study on Consumer Satisfaction in Organized Retail
with respect to apparels. India Journal of Research.
5. India, P. T. (2015, August 10). Snapdeal partners with Shoppers Stop to
enhance customer experience in digital marketplace. E-Commerce.
6. Jeevananda, D. S. (2010). Study on Customer satisfaction level at
Hypermarkets in Indian Retail Industry. Research Journal of Social Science &
Management.
7. Jose Bloemer, K. d. (1998). On the relationship between store image, store
satisfaction and store loyalty. European Journal of Marketing.
8.Shodhganga. (n.d.). Shodhganga. Retrieved from Shodhganga:
http://shodhganga.inflibnet.ac.in/bitstream/10603/4835/11/11_chapter%202.pdf
9. Square, L. (n.d.). Loyalty Square/Shoppers Stop. Retrieved from Loyalty
Square Web Site: http://loyaltysquare.com/shoppers_stop.php
10.Stop, S. (2008-2016). About Us: Shoppers Stop. Retrieved from Shoppers
Stop Website: https://www.shoppersstop.com/aboutus
11. Stop, S. (2015-2016). Shoppers Stop Annual Report. Shoppers Stop.

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Annexure:
Questionnaire
N.R. Institute of Business Management

Dear Respondents,
We the students of NRIBM-PGDM, Ahmedabad are conduction a survey to
study Customer Satisfaction at Shoppers Stop in fulfillment of Research
Methodology Project. Data which we collect from you will be used for
academic purpose only. We kindly request you to provide your valuable data.
We would be heartily thankful for your cooperation.
PERSONAL DETAILS:
1) NAME: _________________________________________________________________
2) GENDER:
Male

Female

3) Age:
a) 18-20

b) 21-26

c) 26-30

d) 30 and above

4) OCCUPATION:
a) Student
b) Employed
c) Self employed
d) Others________________

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QUESTIONS:
1. Do you frequently visit Shoppers Stop?
Yes
No
2. How frequently do you shop at Shoppers Stop?
Every week
Once in two weeks
Once in three weeks
Once in a month
3. Why do you shop at Shoppers Stop?
Low price
Product variety
Quality
Location
4. Do You feel that you find different brands of garment in Shoppers Stop?
Yes
No
5. Do you prefer private level brands to purchase?
Yes
No
6. How much time do you spend while shopping Shoppers Stop?
30-60 min
1-2 hours
2-3 hours

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Above 3 hours
7. Which section do you visit first when you enter Shoppers Stop store?
Apparels
Household
Cosmetics & Fragrances
Watches & Sunglasses
Jewellery
Bags & Footwear
8. Do you agree that this store has modern-looking equipment and fixtures?
Strongly agree
Somewhat agree
Neutral
Strongly disagree
Somewhat agree
9. The store layout at this store makes it easy for customers to find what
they need:
Strongly agree
Somewhat agree
Neutral
Strongly disagree
Somewhat disagree

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10.Do you think, this store has good parking facilities?

Yes
No
11.How is the cleanliness/Hygienic of floor inside the store?
Excellent
Good
Moderate
Bad
12.How do you feel about playing music inside the store when you are
shopping?
Needed
Good, can be played
Sometimes ok
Not Needed
13.Do you agree that this store has modern-looking equipment and fixtures?
Strongly agree
Somewhat agree
Neutral
Strongly disagree
14.Are you satisfied with services provided by Shoppers Stop?
Yes
No

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Part-II: Customer Satisfaction, Marketing strategies

& Promotional Schemes at Shopper Stop:
Customer Satisfaction:
In 2002, Shoppers Stop realized that the customer care associates were not
performing up to the mark and were not able to satisfy the customer, which was
a cause of concern. This made them put in place a Customer Satisfaction
Index (CSI) and an Employee Satisfaction Index (ESI), designed by CSMM
Walker, an American company. At Shoppers Stop they strive to provide their
customers with the best overall experience of shopping with us. To measure the
customer experience, they conduct customer satisfaction surveys to evaluate a
range of parameters including merchandise range and quality, store
environment, staff, transaction efficiency, Loyalty Programme, schemes and
promotions to name a few and undertake improvements in various areas.
They also include select competition stores in their surveys in order to measure
experience in their stores as compared to competition.
Overall Customer Satisfaction Index:
June 2011
August 2012
August 2013
August 2014
August 2015

79
80
80
81
82

Loyalty Programmes:
The Company runs the famed First Citizen Loyalty Programme. The
First Citizens Programme now has a base of over 4.12 million customers.
The First Citizens contributed 72% of the Companys annual sales. The
First Citizen Programme has 3 tiers Classic Moments (entry level),
Silver Edge and Golden Glow. Members fall into the various tiers on the
basis of their spends with us.

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 First Citizens also earn differential rewards basis on their current

tier of membership. First Citizens receive:
Reward points on their spends. These reward points can be redeemed
for a wide variety of merchandise at the Companys stores.
Exclusive schemes, benefits and promotions.
Extended and exclusive shopping hours - especially during the festive
season. Special previews before the sale periods.
Invitations to exclusive events - both in-store as well as those organized
outside the stores.
Home delivery of altered merchandise for some tiers.
Exclusive First Citizens lounge at select stores to relax after hectic
shopping.
Members can enjoy exclusive privileges such as:
10% Extra reward points throughout the year.
Exclusive First Citizen Black cash counters.
Dedicated assistance called Black Assist (11:00 a.m. 8:00 p.m.).
Valet parking services.
The First Citizen experience is also accessible on mobile, by updating the
exclusive First Citizen Mobile application on Blackberry, Android
and iPhone platforms.
The Company continued with the exclusive promotion for First Citizen
members First Citizens Fiesta. Under this promotion the eligible
member got Rs. 1000 Discount Voucher besides lots of other special
offers and deals. The promotion was very well received and it helped
them further reinforce their strong relationship with this member
community.
The Company also continued with the Choose Your Own Gift offer
which gave customers the chance to select their own gifts from within the
store. Instead of offering a pre-selected gift, Shoppers Stop offered

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customers Bonus Reward Points on their purchases which could be

redeemed on any product of their choice.
Co-branded Credit/Debit card Programme with Citibank:
The Company in association with Citibank continues to offer its First
Citizens an option to add on a credit card to their existing loyalty cards.
This enables First Citizens to add on a credit line to their purchases. They
also have the added advantage of being able to choose from amongst
various attractive financing options, cash back schemes, EMI schemes,
etc., for buying at your Companys stores.
E-commerce major Snapdeal and fashion retailer Shoppers Stop have
entered into an exclusive strategic partnership to create the Shoppers Stop
experience in the digital marketplace through a flagship Shoppers Stop
store on Snapdeal. Customers ordering from the retailer brand store on
Snapdeal will be able to pick up the ordered products or get the same
delivered from the nearest retailer store. Consumers will also be able to
exchange or return the products bought on the retailers brand store on
Snapdeal at any of the 74 retailers stores across 35 cities of Shoppers
Stop.
Shoppers Stop has entered into partnership with wallet services provider
FreeCharge, which is part of e-commerce major Snapdeal. As part of the
partnership, Shoppers Stop's customers will have the option to use their
FreeCharge wallet to make payments across all Shoppers Stop stores in
the country as well as on the webstore www.shoppersstop.com. The
partnership will also extend to the Shoppers Stop group companies
including 17 outlets of Hyper City, 95 stores of Crossword and 19 stores
of Home Stop across India.

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 ADVERTISING & PROMOTIONS:

Shoppers Stops advertising strategy is based on creating a bond with the
customer and enhancing their trust in Shoppers Stop. Advertisements thus
promote the Shoppers Stop brand and not the merchandise, store or the
property location. They extensively use promotions and events to further their
relationship with the customers. They have a central marketing team at service
office in Mumbai, supported by representatives at their stores.

Advertising:
Being in the retailing business, Shoppers Stop has been a pioneer - and thats
not just a juicy compliment. They were the first in India (since 1991), they have
a fruitful IT setup, and they have constantly expanded their product line,
encouraging even unconventional tie-ups like Om Shanti Om movie clothing
line. They have also pioneered in developing their B2B sourcing technique.
The Ad Campaign:
The current campaign speaks of a logo change and an untenable Start
Something New tagline. Such rebranding campaigns communicate an
underlying reason for the change, benefits (if any) to the consumer.
Heres one of the Print Ads:

The advertisement of Shoppers Stop directly relate to their target audience in

terms of style, classy look and wardrobes available. The ad here tries to mix the

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western influence on the wardrobe collection in terms of style and class, and
still tries to correlate with the Indian culture. Shopper Stop also advertised its
product range by being the official wardrobe partner for various events and
parties. Due to urge demand and craze of such fashionable products, such
schemes work out well for Shoppers Stop. For eg people adored Deepika
Padukones style in Love Aaj Kal and they could purchase two of her signature
kurtas from the movie at Shoppers Stop!!!

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 Promotional Strategies:
1. Shoppers Stop adopted Communication Strategy which is reaching out to
the customers in their own style and language.
E.g.- The first Shoppers Stop store in Lucknow was named Tehzeeb.
2. In their festive Promotion Campaign PARIKRAMA, customers get an
opportunity to interact with local artisans.
3. They organize major promotional events from time to time e.g. Fly to
Santa Land, Gear up for the school and Salwar Kameez Dupatta
Exchange etc.
4. They organize local festivals like Durga Puja in Kolkata, Onam in South
and Dhanteras in North.
DOWN UNDER FEST- A PROMOTIONAL CAMPAIGN:

An association with Tourism Australia has prompted Shoppers Stop to launch

Down Under Fest a promotional campaign to increase the purchases
during the festive season.

21

Shopper Stop uses different promotional schemes like:

1. Gift Vouchers:
Shoppers Stop offer Gift Vouchers of denomination ranging from Rs.
250 to Rs 5000.

22

2. Festive Offers:
Shoppers Stop gives festive offers on various occasion like Diwali etc.

23

3. Contest:
Shoppers Stop has organized a 101-day Shopping Bonanza to pull in
customers into the stores.
Lucky draw winners of the contest will get to see one of the seven
wonders of the world and two lucky couples who get the grand prize will
be treated to a round-trip which will cover all the seven wonders of the
world.

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