II Chapter: Research Design
Review of Literature
Many past researchers have contributed in this field and laid down several major factors
contributing towards long term customer loyalty. A relationship between various variables like
trust, commitment, customer satisfaction, store brand, product quality, service quality etc and
customer loyalty has been found out by past researchers.
Satnam Kour Ubeja (2013), in his research paper tried to investigate the effects of sales
promotion mix customer satisfaction in shopping malls of Jabalpur city and the variations in
these factors gender wise. Mall intercept survey was conducted with the sample size of 200
shoppers. The study showed that the average customers of Jabalpur city were not s promotion
conscious, but gender wise they were quite conscious about some types of sales promotion mix
factors. Females were found more conscious about sales promotions like lucky draws and gift
offers in shopping malls and males were conscious about monetary benefit offers for getting
customer satisfaction in Jabalpur city.
[Link] and [Link] (2012) in their aimed to investigate customer satisfaction in
the organized retail outlets in Erode city of Tamil Nadu state in India. This study found that
organized retail outlets provided better quality of service, product range as compared to the
unorganized retail outlets. Most of the customers were satisfied with the quality of service
provided by the organized retail outlets. They were satisfied with self-service, product price,
visual merchandising, home delivery and fast checkout. Further, they found that there was no
relationship between satisfaction level towards quality of service offered and the education
qualification of respondents. They found that there was a positive correlation between the
monthly income of the respondents and their monthly purchase in organized retail outlets.
Dr. Brijesh S. Patel and Dr. Ashish K. Desai (2013) tried to find out the factors which affect to
the customer satisfaction of organized retail stores. Result of factor analysis showed that five
factors namely Product Convenience has the strongest impact on satisfaction, while Physical
Features has no influence on satisfaction,. The result of the survey concluded that customers of
Surat city were satisfied with the organized retail stores.
Tafadzwa Machirori and Olawale Fatoki investigated customer satisfaction and customer loyalty
in four big retail stores in King Williams Town, South Africa. Mall intercept was used as the
survey method. The results indicated that holistically, customers were satisfied and loyal to the
retail stores. However, the study identified one significant area of customer dissatisfaction which
was the queuing time. In addition, the study identified that courtesy was an area of concern for
customer satisfaction.
Pughazhendi and Dr. D. Sudharani Ravindranin tried to analyze the buying behavior of the
consumers of Big Bazaar. Further, this research also aimed to analyze the buying behavior of
the consumers of Big Bazaar and future relationship between the retailer and his customers. The
study found that consumer impulsive buying behavior and consumer satisfaction was linked with
buying performance. The study inferred that quality, brand and price were primary factors
having influence on the modern day customers to shop at retail outlets like Big Bazaar. Further
this research also aimed to analyze the buying behavior of the consumers, of Big Bazaar and
future relationship between the retailer and his customers. The study found that consumer
impulsive buying behavior and consumer satisfaction was linked with buying performance. The
study inferred that quality, brand and price were primary factors having influence on the modern
day customers to shop at retail outlets like Big Bazaar.
Anantha Raj A. Arokiaswamy and Dr. Abdul Ghanikanesanbin Abdullah in research paper
examined the impact of service quality dimensions on customer satisfaction. Gap analysis was
used to determine the perceived and expected satisfaction level on each of the service quality
dimensions and regression analysis was conducted to test the relationship between the
SERVQUAL dimensions and customer satisfaction. Results indicated that all 5 service quality
dimensions positively influenced customer satisfaction in terms of loyalty and attitudes. They
also found that there was a significant gap between the perceived satisfaction and expectation on
all the service quality dimensions.
Krishnan Ramasamy (2013) focused on determining customer satisfaction in consumer durable
white goods in Chennai, Tamilnadu, the research also tried to identify the impact of various
factors on customer satisfaction in selected consumer durable white goods. They found that the
overall quality; usage experience, pre sales, after sales services, sales persons behavior, repair,
reliability, customer service and product compatibility were independent variables and were
found statistically significant and had positive response on customer satisfaction and worthiness,
responsiveness, warranty, loyalty programs, competitive prices were the factors that had negative
impact on customer satisfaction.
Mr. [Link] and Dr.S. Vardaraj attempted to find answers for store loyalty of
customers in organized retail format and to find out the cause and extent of satisfaction of
consumerism in the outlet. From this study it was evident that no consumer was loyal to one
store. This study also found that the following factors: gender, marital status and family size
correlate with satisfaction level, the majority of the consumers loyalty shallow in nature.
A research work by B. Ramaseshan and Amy Vinden (2009) identified the determinants of retail
store loyalty for Australian retailers products/services to others were estimated. Researchers
concluded that store satisfaction and store trust had significant influence on consumers loyalty
to retail store, perceived value and store affect did not have noteworthy influence on retail store
loyalty.
Jyothi Kumar and Malabika Purkayastha (2013) examined the mechanism in which retail loyalty
schemes influence consumers buying behavior. It provided a glimpse into the historical
perspective in the development of loyalty programs and outlines the different factors affecting
consumers loyalty decisions. This study concluded that loyalty programs and loyalty cards were
a regular feature in contemporary retailing. Retailers across the industry had been widely using
this tool in their endeavor to develop long term customer loyalty.
Javad Emami Masoud Lajevardi and Sina Fakharmanesh (2013) examined the impact of
competency, ability to establish communication, commitment, ability to solve customers
problems, trust and quality of relationship on customer loyalty. The results of the research
revealed that competency, ability to establish communication had a significant positive effect on
customer loyalty. Further, commitment, ability to solve customers, problems and trust also had a
significant positive effect on customer loyalty. In addition results also showed that ability to
solve customers problems was the best predictor of their loyalty.
Faizan Mohsan, Muhammad Musarrat Nawaz, m. Sarfraz khan, Zeeshan Shaukat, Numan Aslam
(2011) attempted to find the impact of customer satisfaction on customer loyalty and intentions
to switch. The results of the study revealed that customer satisfaction on customer loyalty and
intentions to switch. The results of the study revealed that customer satisfaction was positively
correlated with customer loyalty.
Seyyedeh Mohaddeseh seyyednejad, Hossein Alipur and Mohammad Feizi (2013) found out a
positive relation between relationship marketing and customer loyalty. Their study also resulted
into strong positive between trust, commitment, relationship marketing and customer loyalty. A
significant relationship between trust, commitment, relationship marketing and customer loalty.
A significant relationship between quality of communication, conflict management, competence
and customer loyalty was also found in this research.
Sohelia Ghane, M. Fathaian and M.R. Ghholamian (2011) indicated that service quality, e-
satisfaction and e-trust have strong direct effect on e-loyalty. They concluded that E-loyalty
brought high rate of customer retention and reduced cost for recruiting new customers which
shall lead to long-term profitability to the online retailer. The results confirmed that loyalty of e-
banking customers was directly affected by satisfaction and trust in an online bank, which in turn
were determined by e-service quality.
Dr. S.J. Manjunath and Aluregowda (2013) in their study intended to find out the factors that
affect brand loyalty. The research concluded that brand trust had a relationship with brand
loyalty and it did affect brand loyalty in services. Further, brand effect had no association with
brand loyalty that increased the loyalty of an individual towards a brand.
Muhammad Zaman Sarwar, Kashif Shafique Abbasi & Saleem Pervaiz (2012) studied the effect
of customer trust on customer loyalty and customer retention. The outcome of the study refer that
the customer trust, customer loyalty and cause related marketing have a positive association but
surprisingly the customer trust and customer trust and customer retention have negative
association in Pakistani context. Hence customer trust is the pivotal characteristic of each and
every relationship.
Anuwant Songsom and Hatyai Campus 2013) aimed to develop a structural equation model of
customer loyalty to traditional retail shop in Hat Yai district. In their model, the factors of CSR
expectation, switching cost, customer satisfaction and customer trust were significantly and
positively related to customer loyalty. Further, customer trust factor was the highest direct effect
on customer loyalty while customer satisfaction was the highest indirect effect.
Eman Mohamed Abd-El-Salam, Ayman Yehia Shawky and Tawfik El-Nahas (2013) in their
research work explored the relationship among corporate image and reputation, service quality,
customer satisfaction and customer loyalty.
Objectives of the study:
To know the level of satisfaction among various dimensions in Big Bazaar, Mangalore
To assess the customer satisfaction towards Big Bazaar
To measure customers loyalty towards Big Bazaar
To identify the interrelationships between product quality, customer satisfaction and
customer loyalty at Big Bazaar
Statement of Research Problem (Need for the study)
Organized retail is gaining tremendous importance in the recent times. On the other hand, the
retail industry is also facing severe competition and those who are able to retain their customers
are the ones that are able to succeed in the market place.
The retail firms are spending a lot of their marketing resources to keep existing customers rather
than to attract new ones. Customers satisfaction plays a key role in customer retention and also
is a major differentiating factor among retail stores. Delivering satisfaction to the consumers has
become one of the major drivers of profitability.
The study is being conducted for the Big Bazaar store based in MANGALORE city, to find out
the CUSTOMER LOYALTY TOWARDS CUSTOMER SATISFACTION in choosing Big
Bazaar. It is required to find out the preferences based on certain aspects (price, income, levels
selection of products satisfaction level of customers)
Methodology of the study:
Meaning:
The systematic method consisting of enunciating the problem, formulating a hypothesis,
collecting the facts and reaching certain conclusion either in the form of solutions towards the
concerned problem or in certain generalizations for same theoretical formulation.
Objectives:
Find out truth which is hidden and which has not been discovered yet.
Gain familiarity with a phenomenon or to achieve new insights into it.
Portray accurately the characteristics of a particular individual, situation or group.
Determine the frequency with which something occurs or with which it is associated with
something else.
Test a hypothesis of a causal relationship between variables.
The study is done at Big Bazaar in Mangalore city.
Data sources:
Primary data
Primary data would be collected from the Big Bazaar customers in Mangalore city.
Secondary data
Secondary data is collected from books, magazines, company reports, some websites and
newspapers.
Sampling unit
All Big Bazaar customers in Mangalore city.
Methodology
Research instrument : Questionnaire
Sample size : 100
Statistical tool : chi-square test
Sampling technique
In order to investigate the antecedents of brand loyalty, Mangalore city is taken up through the
judgement sampling method and100 samples are considered to pool up the questionnaire is clear,
easy to understand, and straightforward to ensure that the respondents could answer the
questions.
Scope of study:
The study intends to know the impact of Customer Loyalty towards Big Bazaar is using to
increase the sales, how the customers use their loyalty programs which are provided by the Big
Bazaar, Mangalore.
Limitations of the study:
It is not possible for any market study to make it accurate due to many hurdles in the collection
and computation of data. Some limitations of the study are listed below:
The sampling frame to conduct the study has been restricted to Big Bazaar at Mangalore.
Respondents showed reluctance towards giving correct information.
Findings of the study are based on the assumptions that respondents have disclosed in the
questionnaire.
Time was major constraint.
The sample was limited to only customers who have made purchase at Big Bazaar.
