market research-oganized retailing in India

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“STUDY OF CUSTOMER RELATIONSHIP MARKETING PRACTICES IN ORGANISED RETAILING IN FOOD AND GROCERY SECTOR IN INDIA : AN EMPIRICAL ANALYSIS”

INTRODUCTION:

INTRODUCTION Food and grocery is the second largest segment of the retail trade that constitutes 53 percent of the total private consumption expenditure (US$ 154 billion) and 70 percent of the total retail sales. Contributed immensely to the growth of Western format typologies such as convenience stores, department stores, supermarkets, specialty stores and hypermarkets.

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Thus, customer relationship marketing has come into limelight as a strategy to seek greater understandings of their customer’s needs and expectations. Impact of consumer perceptions of relationship marketing cornerstones such as trust, commitment, communication and customer satisfaction which influence the nature and degree of important relationship marketing outcomes

TRUST:

TRUST Trust is the most essential ingredient in any relationship , whether it is a business or a social relationship . Fulfillment of promises has been equally important as a means of achieving customer satisfaction, retention of customer base and long-term profitability by fanning the fire of trust. A higher level of consumer trust is positively correlated with relationship quality.

COMMITMENT:

COMMITMENT Commitment to be an attachment between two parties that leads to a desire to maintain a relationship. It strengthens the covalent bond between the retailers and customers. Also called as ‘ Pledge of Continuity’ between customer and firms.

COMMUNICATION:

COMMUNICATION Communication is aptly referred to as an ability to provide prompt and trustworthy information . An interactive dialogue between the firm and its customers that takes place during the process of pre-selling, selling , consuming and post-consuming stages. It means providing trustworthy information on the services; fulfillment of their promises; and providing information if the delivery problems occurs and also tells the disgruntled customer what the organization is doing to rectify the source of discontentment.

CUSTOMER SATISFACTION:

CUSTOMER SATISFACTION Customer satisfaction is a key antecedent to loyalty and repurchase. Satisfied customers are less price sensitive and willing to pay a higher price premium. Customer satisfaction positively correlated with relationship quality.

Relationship Quality & customer loyalty:

Relationship Quality & customer loyalty

RESEARCH METHODOLOGY:

RESEARCH METHODOLOGY The study was based on primary as well as secondary data. Population -Retail customers in Hyderabad. Total number of people surveyed - 180 Total number of respondents - 165 Response rate - 91.66% Usable Responses- 150

RESEARCH METHODOLOGY:

RESEARCH METHODOLOGY Content and Structure of the Questionnaire Mainly consisted of questions based on the demographic profile of the customer. Focused on the 4 entities- Trust, Commitment , Communication and Satisfaction Measures estimated by using dichotomous, Multiple choice ,Seven point Likert scale and open ended questions.

Statistical analysis & discussions:

Statistical analysis & discussions Use of correlation to examine the strength and direction of relationship among Four basic variables Trust-TRS Commitment-CMT Communication-COM Satisfaction-SAT Two outcome variables Relationship Quality-RQ Loyalty-LOY.

Co-Relation:

Co-Relation

Regression Analysis:

Regression Analysis RM Cornerstones and Customer Loyalty RM Cornerstones and Relationship Quality Relationship Quality and Customer Loyalty

Regression Analysis:

Regression Analysis

RM Cornerstones and Customer Loyalty:

RM Cornerstones and Customer Loyalty

RM Cornerstones and Customer Loyalty:

RM Cornerstones and Customer Loyalty

Observation:

Observation Customer Satisfaction (SAT) has emerged as a major influencing variable followed by Commitment (CMT), Trust (TRS) Communication(COM) for Customer Loyalty (LYT) Customers tend to be loyal when they are satisfied, mostly with the quality products and services with retail outlets

Regression Analysis:

Regression Analysis

RM Cornerstones and Relationship Quality:

RM Cornerstones and Relationship Quality

RM Cornerstones and Relationship Quality:

RM Cornerstones and Relationship Quality

Observation:

Observation Customer Satisfaction (SAT) has emerged as a major influencing variable followed by Commitment (CMT) Trust (TRS) Communication (COM) for Relationship Quality. For building an effective relationship retailers should primarily focus on customer satisfaction.

Regression Analysis:

Regression Analysis

Relationship Quality and Customer Loyalty:

Relationship Quality and Customer Loyalty

Relationship Quality and Customer Loyalty:

Relationship Quality and Customer Loyalty

Observation:

Observation Coefficient summary as shown in table shows Beta value of Relationship Quality (RQ) is 0.775, which substantiates of its impact on Customer Loyalty. This reveals that the better the quality of relationship between the customers and the retail outlet, the more loyal customers would be.

MANAGERIAL IMPLICATIONS:

MANAGERIAL IMPLICATIONS Retail outlets/Consumer service organizations should try to build quality relationship with customers. Customer loyalty reduces the cost of business transactions by 5-6 times. Loyal customers with their positive word of mouth bring in more customers.

MANAGERIAL IMPLICATIONS:

MANAGERIAL IMPLICATIONS By positive quality customer relationship, retail outlets can better understand the customer needs Customers are more sensible, tradition bound and value-oriented in food and grocery retailing. Customers are more price sensitive and quality conscious.