an empirical study of customer expectation and perception in organized retail sector

7/27/2019 An empirical study of customer expectation and perception in organized retail sector

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An empirical study of

customer expectation

and perception in

organized retail sector


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+OBJECTIVES

To learn and understand the important factors in service quality

dimensions applicable to organized retail sector

To know the level of customer satisfaction with service qualitydimensions.

To check the significance of difference between customers

expectations and perceptions in organized retail sector

To suggest measures for improving the quality and efficiency in

organized retail sector.


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+Key words

Organized Retail: It is an interface between manufacturer &

consumer, who insures the easy flow of goods to the

customers. It is a retail place where all the items are

segregated and brought under one roof.

Customer Expectation: Is what the customer expects

according to available resources and is influenced by culturalbackground, family lifestyle, personality, demographics,

advertising, experience with similar products and information

available.

Customer Perception: It is totally subjective and based on the

customers interaction with the product or services. It is derived

from the customers satisfaction of the specific product or

service and quality of service delivery.


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+SERVQUAL MODEL

In 1988 Parasuraman et al developed a model to measure the

expectation & perception towards any service. The model has

five dimensions.


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Reliability: Is concerned with the stores ability to perform the

service accurately and dependably

Responsiveness: Is related with the employees willingness to

help customers and provide prompt services.

Assurance: Includes employees knowledge, courtesy and their

ability to inspire trust and confidence.

Empathy: Is related with caring, individualized attention given

to customer or the ease of access, approachability and effort

taken to understand customers requirements.

Tangibles: Is all about the appearance of the physical facilities

and material relayed at retail outlet.


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+Literature review

In retail business service quality plays an important role. The

retailers should know how customers evaluate service quality

and what can be done to improve it.

Retaining customers in retail business is tough. The retailers

should strive to improve service quality and provide assurance

towards its customers.

In retailing perceived quality is having a significant influence

on purchasing and repurchasing decisions.

Tangibles, Reliability, Responsiveness, Competence, credibility,

accessibility and customer knowledge are positively related to

customer satisfaction.


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+ Understanding Service Gap Model


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+ Gap 1: The difference between what customer expected and

what management perceived about the expectation of

customers

Gap 2: The difference between managements perceptions of

customer expectations and the translation of those perceptions

into service quality specifications and designs.

Gap 3: The difference between specification or standards of

service quality and actual service delivered to customers.

Gap 4: The difference between the service delivered to

customers and the promise of the firm to customers about its

service quality.

Gap 5: The difference between customer

expectation and perception


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+Profile of respondents

Demographics Majority percentageGender 57 % males

Education 48 % GraduatesAge(years) 37 % in 25-30

Monthly income 38 % in 30001-40000

Monthly spending 43 % spend only 2001-3000


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+Findings

Study reveals that the retail services

perform the service within the expectedtime.

The expectations and perceptions are onlyat a high for error free services.

The overall gap result is negative , henceretail services need to improve.

Reliability

The study reveals that both th customers

perception and expectations are at thehighest level.

Employees willingness to help &

employees promptness have positive mean

quality gap score.

The overall gap is negative (-0.015)and

suggests improvement.

Responsiveness


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+Findings

Every customer expects that dealing employee at organized retailoutlet must has sufficient knowledge about products .

In the case of trustworthiness of employees customersexpectation are matching with their perceptions.

The overall mean quality gap score is negative (-0.082) whichshows that staff dont have enough knowledge & courtesy toinspire trust & confidence among customers.

Assurance

The case reveals that level of expectation &perception for all parameters concerningEmpathy dimension are equal.

Total negative gap shows deficiency in effortstaken by employees in understandingcustomers requirements.

Empathy

The case reveals that Tangibles dimension customersexpectations & perceptions are at same level.

This is the only dimension where majority of parameters arehaving positive mean quality gap score including overall meanquality gap score (0.1029).

Thus, organized retail outlets are meeting with the expectations ofcustomers for this dimension or customers are satisfied withtangibles associated with organized retail outlets

Tangibles


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+Conclusion

Service quality is an important aspect for retailers to know about

customers satisfaction & SERVQUAL model is the root way to

measure the effectiveness of service quality.

In this paper gap has been identified between expectation &

perception of customers towards the organized retail outlets of

Udaipur, which revealed dissatisfaction among customers.


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+Suggestions

Organized retail outlets of Udaipur can take following actions to reduce themean quality gap score:-

Retail outlets should adopt the efficient inventory management system sothat customers can find the merchandise available at the time ofrequirement.

Employees of retail outlets should be trained to handle the customerscomplaints effectively.

Employees of retail outlets should have sufficient knowledge aboutproducts available in store.

Availability of physical facilities should be improved

Retail outlets should try to perform error free services.

an empirical study of customer expectation and perception in organized retail sector

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