Final Project Report
Final Project Report
ON
SITUATIONAL
IONAL FACTORS INFLUE
INFLUENCING
NCING
CUSTOMERS WHILE SELE
SELECTING A RETAIL
OUTLET
Westside stores
Declaration
No. 0631701707, Class BBA 6th Sem (Morning) of the Tecnia
I Simranjeet Kaur,, Enrolment No
Institute of Advanced Studies, Delhi hereby declare that the Final Project Report entitled
SITUATIONAL FACTORS INFLUENCING CUSTOMER
CUSTOMERSS WHILE SELECTING A RETAIL
OUTLET is an original work and the same has not been submitted to any other Institute for the
award of any other degree.. A seminar presentation of Project Report was made on
_______________________ and the suggestions as approved by the faculty were duly
incorporated.
Signature of Researcher
Countersigned
2
TECNIA INSTITUTE OF ADVANCED STUDIES
(Approved by AICTE, Ministry of HRD, Govt. of India)
Affiliated To Guru Gobind Singh Indraprastha University, Delhi
INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- DELHI 110085
Mail : director.tecniaindia@ gmail.com, Website: www.tecniaindia.org
E-Mail
Fax No: 27555120, Tel: 27555121-24
27555121
Acknowledgement
I take this opportunity to express my sincere gratitude to Mr. G.B. Sitaraam (Project guide) for
constantly guiding me and acting as my mentor during the course of my project and other staff of
the institute for extending their valuable support and help in the preparation of this project report.
I am also thankful to my family & friends for their support and help during the project.
Submitted by:
SIMRANJEET KAUR
3
Preface
The enormous retail boom in India has given space to many companies who have mushroomed
out to benefit from this retail boom, which is nothing but a structured format of the unorganized
retail business which is being done in India from ages.
Many stores have come up with exquisite interiors, state of the art infrastructure and the best
possible brands to the customer which has led to the growth of mall culture in India. The
stores try and attract customers by providing them with such services and plethora of options in
brands in different categories so that they can retail customers for long and make them loyal
towards their retail stores.
The retail business is booming in India and there has been remarkable shift in the buying
behavior of the people from traditional stores to these departmental stores. It becomes important
for the marketers to understand the factors that influence the customer’s decisions while selecting
a retail store. It would also enable the researcher to understand the consumers buying attitude
towards these stores.
The primary data was collected by getting the questionnaire filled by the respondents who were
shopping in the Westside store in TDI Mall, Rajouri Garden, Delhi to find out that what influence
them while selecting a retail outlet.
4
Table of contents
1) Company profile….....................................................................................................................7
2) Industry profile........................................................................................................................11
3) Introduction..............................................................................................................................13
4) Objectives of the study.............................................................................................................22
5) Review of Literature................................................................................................................24
6) Research methodology.............................................................................................................28
7) Limitations................................................................................................................................30
CHAPTER – V CONCLUSIONS
12) Annexure.................................................................................................................................55
13) Bibliography….......................................................................................................................59
5
6
Company Profile
About Westside
The lifestyle store by the Tata’s that caters to the upper middle class segment, has built its
customer base through its USP of affordable style. There are 23 Westside stores in 14 cities.
Price is crucial in the Indian retail scenario and Westside’s focus on this factor is part of the
reason. Westside houses a collection of the finest merchandise for the entire family. There are
spacious shopping areas for the various sections - women’s wear, men’s wear and the children's
and the household sections occupy the floor level. Westside offers customers the very best and
latest international shopping experience. Westside has a team of dedicated stylists,
merchandisers, helpful and courteous store staff and talented in-house designers. The
combination of the very latest in-style fashion with affordability is highlighted in all of
Westside’s merchandise. Westside stands out from the competition for a variety of reasons. One
is that a majority of the brands the chain stocks and sells are its own, unlike retailers who store
multiple labels. About 90 per cent of Westside’s offerings are home-grown, and they cater to
7
different customer segments. The other 10 per cent includes toys, cosmetics and lingerie.
However, recently Westside has recently expanded its range of merchandise by offering outfits
from some of India’s best-known fashion designers, among them Wendell Rodericks, Anita
Dongre, Krishna Mehta and Mona Pali. This is an interesting marketing shift, since it means
moving away from the chain’s only-our-own-brands concept.
About Trent
Established in 1998 as part of the Tata Group, Trent Ltd. operates Westside, one of India's
largest and fastest growing chains of retail stores.
The Westside stores have numerous departments to meet the varied shopping needs of customers.
These include Menswear, Women’s wear, Kid’s wear, Footwear, Cosmetics, Perfumes and
Handbags, Household Accessories, lingerie, and Gifts. The company has already established 41
Westside departmental stores in Ahmedabad, Bengaluru, Chennai, Delhi, Gurgaon, Ghaziabad &
Noida, Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur,
Nashik, Pune, Rajkot, Surat, Vadodara and Jammu. The company hopes to expand rapidly with
similar format stores that offer a fine balance between style and price retailing.
8
The Westside story
This story began circa 1998 when the TATAs acquired Littlewoods a London based retail chain.
This acquisition was followed by the establishment of Trent Ltd (a TATA enterprise that
presently operates Westside). Littlewoods was subsequently renamed Westside.
In a rapidly evolving retail scenario, Westside has carved a niche for its brand of merchandise
creating a loyal following. Currently, the company has 41 Westside stores measuring 15,000-
30,000 square feet each across 22 cities.
With a variety of designs and styles, everything at Westside is exclusively designed and the
merchandise ranges from stylized clothes, footwear and accessories for men, women and children
to well-co-coordinated table linens, artifacts, home accessories and furnishings. Well-designed
interiors, sprawling space, prime locations and coffee shops enhance the customers’ shopping
experience.
Mission statement
“At Westside our mission is to be the most preferred and consistently profitable lifestyle
retailer.”
In order to achieve this goal, we shall develop a comprehensive understanding of customer’s
needs, strive to win their confidence, and offer them best-in-class products and services at
affordable prices. We shall always be in the forefront of fashion and services by anticipating and
exceeding the expectations of our customers.
Style, affordable prices, quality: these are the factors that have shaped Westside’s success story
in the retail fashion stores business. Launched in 1998 in Bangalore, the Westside chain
has, ever since, been setting the standards for other fashion retailers to follo
9
Floor Arrangement of the Westside store, TDI Mall, Rajouri Garden, Delhi
1. Ground Floor
Cosmetics, Jewellery, Watches, Bags
2. 1st Floor
Women Section, Children Section, Household items
3. 2nd Floor
(Men Section) Casual Clothing, Formal Wear, Ethnic Wear, Shoes
In case of visual merchandising all the category of clothes of all sizes and varieties are displayed
and hence the consumption of space for shelves is reduced. And it is convenient for customers to
choose and for the attendants to support buying. Profitability of Westside Delhi is more than that
in Pune and Bangalore because youth here have much spending power. It is also driven from
strong demand backed by quality products and latest fashion.
Westside was awarded the “Most Admired Retailer of the Year” in the Department Store
category at the recently held Images Retail Awards 2009, the most eagerly awaited awards of the
organised retail industry in India. The other nominations in this segment were Shoppers Stop,
Pantaloons, Lifestyle, Globus, and Reliance Trends.Westside, which has 40 stores spread over 23
cities, has won this award on 3 previous occasions.
10
Industry Profile
The promise that the sector holds for India can be gauged from the fact
that India has topped the AT Kearney's annual Global Retail
Development Index (GRDI) for the third consecutive year, maintaining
its position as the most attractive market for retail investment. The
Indian retail market, which is the fifth largest retail destination globally, according to industry
estimates is estimated to grow from the US$ 330 billion in 2007 to US$ 427 billion by 2010 and
$637 billion by 2015. Simultaneously, modern retail which presently accounts for 4 per cent of
the total market is likely to increase its share to 22 per cent by 2010.
India has one of the largest number of retail outlets in the world. Of the 12 million retail outlets
present in the country, nearly 5 million sell food and related products. Even with this large
number of outlets, organized retail accounts for only 4 per cent of the total market, opening huge
growth potential in this segment. Driven by changing lifestyles, strong income growth and
favorable demographic patterns, Indian retail is expanding at a rapid
pace. Mall space, from a meagre one million square feet in 2002, is
expected to touch 40 million square feet by end-2007 and an
estimated 60 million square feet by end-2008, says Jones Lang
LaSalle's third annual Retailer Sentiment Survey-Asia.
Alongside, Indian cities are witnessing a paradigm shift from traditional forms of retailing into a
modern organized sector. A report by Images Retail estimates the number of operational malls to
more than double to over 412 with 205 million square feet by 2010 and further 715 malls by
2015, on the back of major retail developments even in tier II and tier III cities in India.
Given this scenario, there is a dearth of trained manpower at all levels in the sector. In the next
three years, India would need 2.2 million people in the retail sector, of which organized sector
would account for nearly 10 per cent of it. This is the potential that the sector holds.
With rising consumer demand and greater disposable income, the US$ 400 billion Indian retail
sector is clocking an annual growth rate of 30 per cent. It is projected to grow to US$ 700 billion
by 2010, according to a report by global consultancy Northbridge Capital. The organized
11
business is expected to be 20 per cent of the total market by then. In 2008, the share of organized
retail was 7.5 per cent or US$ 300 million of the total retail market.
India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion
by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country
with high growth rates, consumer spending has risen sharply as the youth population (more than
33 percent of the country is below the age of 15) has seen a significant increase in its disposable
income. Consumer spending rose an impressive 75 per cent in the past four years alone.
With growing market demand, the industry is expected to grow at a pace of 25-30% annually.
The India retail industry is expected to grow from Rs. 35,000 crore in 2004-05 to Rs. 109,000
crore by the year 2010.
The India Retail Industry is the largest among all the industries, accounting for over 10 per cent
of the country's GDP and around 8 per cent of the employment. The Retail Industry in India has
come forth as one of the most dynamic and fast paced industries with several players entering the
market. But all of them have not yet tasted success because of the heavy initial investments that
are required to break even with other companies and compete with them. The India Retail
Industry is gradually inching its way towards becoming the next boom industry.
The total concept and idea of shopping has undergone an attention drawing change in terms of
format and consumer buying behavior, ushering in a revolution in shopping in India. Modern
retailing has entered into the Retail market in India as is observed in the form of bustling
shopping centers, multi-storied malls and the huge complexes that offer shopping, entertainment
and food all under one roof.
A large young working population with median age of 24 years, nuclear families in urban areas,
along with increasing workingwomen population and emerging opportunities in the services
sector are going to be the key factors in the growth of the organized Retail sector in India. The
growth pattern in organized retailing and in the consumption made by the Indian population will
follow a rising graph helping the newer businessmen to enter the India Retail Industry.
12
Introduction
Retailing consists of the sale of goods or merchandise from a fixed location, such as a
department store ,shopping mall etc .The retailer buys goods or products in large quantities
from manufacturers either directly or through a wholesaler, and then sells smaller quantities to
the end-user. Retail establishments are often called shops or stores. Retailers are at the end of the
supply chain. Manufacturing marketers see the process of retailing as a necessary part of their
overall distribution strategy.
The Indian retail industry is on the verge of revolution market liberalization and increasingly
assertive consumers are sowing the seeds of a retail transformation that is bringing better Indian
and Multinational operators on the scene. A number of Indian and International retailers are
entering this nascent market. And retailing as an industry is coming alive.
The study would enable us to understand the impact of various factors that influence a
consumer’s shopping behavior in a departmental store. It would also help in knowing the
magnitude and direction of movement of these factors amongst each other. These factors have
been divided into three heads- Store, Situation and Shopper factors.
13
Activities undertaken by a retailer in conjunction with the basic goods and services it sells.
Store hours
Parking
Shopper-friendliness
Credit acceptance
Salespeople
In store announcement
Merchandise Availability
Complaint handling
Merchandise returns
Servicing and repair
Retailing Decisions
There are many factors for retailers to consider while developing and implementing their
marketing plans. Among the major retailing decisions are these related to (a) Target markets (b)
Merchandise management (c) Store location (d) Store image (e) Store personnel (f) Store design
(g) Promotion, and (h) Credit and collections.
Target Markets: Although retailers normally aim at the mass market, a growing number are
engaging in marketing research and market segmentation, because they are finding it increasingly
difficult to satisfy everyone. Through a careful definition of target markets, retailers can use their
resources and capabilities to position themselves more effectively and achieve differential
advantage. The tremendous growth in number of specialty stores in recent years is largely due to
their ability to define precisely the type of customers, they want to serve.
Merchandise Management: The objective here is to identify the merchandise that customers
want, and make it available at the right price, in the right place at the right time. Merchandise
Management includes (i) merchandise planning (ii) merchandise purchase, and (iii) merchandise
control. Merchandise planning deals with decisions relating to the breadth and depth of the mix,
needed to satisfy target customers to achieve the retailers return on investment. This involves
sales forecasting, inventory requirements, decisions regarding gross margins and mark ups etc.
14
Merchandise buying involves decisions relating to centralized or decentralized buying,
merchandise resources and negotiation with suppliers. Merchandise Control: deals with
maintaining the proper level of inventory and protecting it against shrinkage (theft, pilferage
etc.).
Store Location: Location is critical to the success of a retail store. A store's trading-area is the
area surrounding the store from which the outlet draws a majority of its customers. The extent of
this area depends upon the merchandise sold. For example some people might be willing to travel
a longer distance to shop at a specialty store because of the unique and prestigious merchandise
offered. Having decided on the trading area a specific site must then be selected. Factors
affecting the site include, traffic patterns, accessibility, competitors' location, availability and cost
and population shifts within the area.
Store Image: A store image is the mental picture, or personality of the store, a retailer likes to
project to customers. Image is affected by advertising, services; store layout, personnel, as well
as the quality, depth and breadth of merchandise. Customers tend to shop in stores that fit their
images of themselves.
Store Personnel: Sales personnel at a retail store can help build customer loyalty and store
image. A major complaint in many lanes of retailing is the poor attitude of a salesperson. There is
a growing trend now, to provide training to, these sales clerks to convert them from order takers
to effective sales associates.
Store Design: A store's exterior and interior design affect its image and profit potential. The
exterior should be attractive and inviting and should blend with the store's general surroundings.
The term "Atmospherics" is used to refer to the retailer's effort at creating the right ambience.
Merchandise display is equally important. An effective layout guides the customer though the
various sections in the store and facilitates purchase.
Promotion: retail promotion includes all communication from retailers to consumers and
between sales people and customers. The objective is to build the stores image, promote
customer traffic, and sell specific products. It includes both, personal and non personal
15
promotion. Personal communication is personal selling - the face to face interaction between the
buyer and the seller. Department stores and specialty stores, emphasize this form of promotion.
Non personal promotion is advertising. The media used are TV, Radio, Newspapers, Outdoor
displays and direct mail, other forms of promotion include, displays, special sales, give always
and contests etc.
Credits & Collections: Retailers are generally wary of providing credit, because of additional
costs-financing accounts receivables, processing forms and bad debts etc. But many customers
prefer some form of credit while purchasing. This explains the popularity of different types of
credit cards and debit cards.
16
7 P’s of Services
1st P: PRODUCT
Product- refers to the merchandise i.e. the range of clothes.
Supplementary services -include a component of fashion, life style and Ambient shopping as
an addition to the core product.
Today, customers buy experiences and not brands or products.
2nd P: PRICING
Cost plus price and Percentage method pricing
Most widely used technique to price apparels.
E.g.: - COLOR PLUS and IN-HOUSE brands like those of SHOPPER’S STOP or
WESTSIDE use this technique.
3rd P: PLACE
Apparel Retailing Business is driven by one crucial factor:
Location
Approachable
Parking
17
4th P: PROMOTION
Print medium.
Loyalty programs
In-store Visual merchandising
5th P: PEOPLE
Every second a customer spends inside the store has to be viewed as Moment of Truth
“People” is that aspect of the marketing mix which adds tangibility to the service of creating
an experience
6th P: PROCESSES
18
Store ambience
Make the store ambience inviting and comfortable. In most businesses, you want to keep your
customers around as long as possible. The longer they linger, the more they will usually spend. In
any case, you want the customer to enjoy coming to you. So make the store atmosphere
welcoming, attractive and friendly. Store owners should make an attempt to decorate and provide
a visually interesting space. Elaborate displays are not the answer to decoration. Appropriate
lighting, well painted walls, neatly stacked racks, attractive decor, friendly yet unobtrusive sales
people, soothing/peppy music (as the brand demands) are a few things the store owner can look
into in the hope of increasing footfalls. Researchers have proven that 70 per cent of purchase
decisions are in-store decisions, and these are largely influenced by the placement of
merchandise, in-store signages, the décor so on and so forth. A retailer should not miss out on
such an opportunity just because of not putting time into having a good store layout. The store
signage should convey the retailer’s message loud and clear. It should be informative enough for
a customer. In-store signages should educate the consumer on what they are looking at and to
direct them at what they would want to locate inside a store. In an apparel store a customer is
often lost if the in-store signage for a trial room are not clearly located. Signages for ‘large’
‘medium’ and ‘small’ sizes should be placed next to the merchandise to facilitate the customer’s
search.
The location
The location is also important for shopper traffic in a store. Depending upon the retailer’s
requirements he can have a store at high-street or at a mall. Having a store at a good location
where foot traffic can flow into the store can be just the thing that can improve sales. Also ensure
that the surroundings of the store area are welcoming. Instead of expecting customers to walk in,
the retailer should go where they are; at local events, near schools and malls. The business
owners should go and invite people, either for sales or promotional events. This drives clients
into your store and deepens the physical footprint of your retail store. There is never a second
chance to make a first impression. Taking a cue from this, store owners should realize that
neglecting store environment, inside or outside can have serious implications on the sales of the
store. It does not take a genius to figure out that an emphasis on store ambience, design and feel
will ultimately influence the purchase decision of the customer.
19
Visual Merchandising
Visual impact is a huge component of retail merchandising. Customers entering a store are
greatly influenced by the visual information they gather in the first split second. One simple
visual element, such as color, can catch a shopper’s attention and also greatly affect their mood.
In today’s ultra competitive market place it is of paramount importance that retailers understand
the basics of visual merchandising.
Visual merchandising is the way one displays 'goods for sale' in the most attractive manner with
the end purpose of making a sale. "If it does not sell, it is not visual merchandising."
Visual merchandising is the art of implementing effective design ideas to increase store traffic
and sales volume. VM is an art and science of displaying merchandise to enable maximum sale.
VM is a tool to achieve sales and targets, a tool to enhance merchandise on the floor, and a
mechanism to communicate to a customer and influence his decision to buy. VM uses season
based displays to introduce new arrivals to customers, and thus increase conversions through a
planned and systematic approach by displaying stocks available.
Assortment Size
Successful retailers and merchants offer an optimized assortment of products to their customers.
Whether you have a drugstore, clothing store or toy store, offering the best mix of products is
essential to long-term success and customer satisfaction. Product assortment optimization
requires strategic inventory decisions and product selection. The best product assortment
strategies maximize profit, minimize risk and increase overall sales. Constantly expanding
product choices, multiple selling channels and escalating consumer expectations pose daunting
challenges to retailers' ability to efficiently build profitable consumer-centric product
assortments. In today's dynamic merchandising environment, the commonly utilized hierarchical
and territorial buying strategies often prove more burdensome than effective when it comes to
offering savvy consumers the optimal combination of brands, colors, styles and sizes. To
maximize profitability, a growing number of retailers recognize they must knowledgeably
integrate the traditional art of buying with the innovative science of product selection.
20
21
Objectives
This project aims at understanding the factors that affect a customer to patronage a retail outlet
(durable products) and identifying the store attributes for developing store patronage.
1. To find out what are the factors that influence the customer while selecting a retail store
for shopping
2. To find out how convenience in approach and location influences a shopper’s loyalty for
a store.
3. To find out how differentiation in type and quality of assortment offered by a store affects
the buying behavior of shopper.
4. To understand how the promotional offers and store ambience affect the customers
decisions while selecting a retail outlet.
5. To understand the customer behavior and their expectations inside the mall.
22
23
Review of Literature
1) Title: Situational, consumer, and retailer factors affecting Internet, catalog, and store shopping
Author(s): Kenneth C. Gehrt, Ruoh-Nan Yan
Journal: International Journal of Retail & Distribution Management
Year: 2004 Volume: 32 Issue: 1 Page: 5 - 18
Abstract: Most research related to consumer choice of retailers emphasizes retailer attributes
and/or consumer characteristics. Since many retail formats, including online retailing, have
emerged in recent years, knowledge of how consumers select retail formats must be updated. A
source of influence that has been examined to a very limited extent for store retailers but not for
emerging retail formats is situational influence. From a modern interactionism perspective, this
study investigates the influence of situational as well as consumer and retailer factors on
preference for online, catalog, and store formats. Key results show that situational factors have
significant influence on online and catalog format selection and perceptions of attributes that are
crucial to that selection.
24
3) Title: Consumer-specific determinants of the size of retail choice sets: an empirical comparison
of physical good and service providers
Author(s): Richard R. Brand, J. Joseph Cronin
Journal: Journal of Services Marketing
Year: 1997 Volume: 11 Issue: 1 Page: 19 – 38
Abstract: Examines the relationship between consumer-specific constructs and the size of
consumer retail choice sets for four different types of retailers: convenience/quick-stop stores,
fast-food outlets, health clubs and medical services. Includes in the analysis consumer
experience, product class importance, brand-decision importance, perceived risk, brand loyalty
and demographics as predictors of the size of awareness, consideration/evoked and
reconsideration set sizes. Finds that when comparing physical goods as opposed to service
providers, the size of retail choice sets differs significantly and that consumer experience and
reseller loyalty are important predictors of choice set size. Indicates that the size of a consumer’s
choice set decreases as a retailer’s product offerings move along the continuum from pure
physical goods to pure services. Identifies and discusses managerial and research implications of
the results.
25
5) Title: Shopping centre image dynamics of a new entrant
Author(s): Pedro Quelhas Brito
Journal: International Journal of Retail & Distribution Management
Year: 2009 Volume: 37 Issue: 7 Page: 580 - 599
Purpose – The purpose of this paper is to investigate how and to what extent the attributes of a
new shopping centre entrant evolve during the first seven months of operation, and the
implications this has for the incumbents. To capture the strategic relevance of those changes a
consumer image tracking analytical tool is developed and applied.
Findings – The correlates between the magnitudes of shopping centre attribute perception
variations, the level of self-confidence in image evaluation, shopping centre frequency of visits,
degree of the “halo effect”, shopping centre and store consumer's preferences are analysed. Only
the self-confidence and store preference did not evolve with the image magnitude changes as
hypothesised.
26
27
Research methodology
Research design
Descriptive Research: Descriptive research embraces a large proportion of marketing research.
The purpose is to provide an accurate snapshot of some aspect of the market environment.
Data type
Introduction:-
Any organization whether big or small, private or public need different types of information are
to know its popularity. I have gathered secondary data and primary data and collected
information from the combination of these two data.
Primary data
Primary data collection method is decided for observing working of the organization and
approaching customers directly in the field
A great care is taken while collecting primary data to answer that it is relevant, accurate, current
and unbiased
Secondary
Secondary data collection method is used by referring to various websites, books, magazines,
journals and daily newspapers for collecting information regarding the project under study.
Secondary data consist of information that already exists somewhere, having been collected for
another purpose.
In survey approach a questionnaire method is selected for taking a customer view because it is
feasible from the point of view of the subject and survey purpose.
Sampling techniques
Sample size - sample size of 50 respondents is taken as the population size too vast is
complicated to survey.
28
Target Population - this survey was conducted among 50 people, and the target group is a
mix of people from the society. Doctors, Professionals, Professors, Students, Engineers, and
general public were interviewed.
Sample location - The study will provides a representative sample of the main shopping
centre in West Delhi i.e. Westside stores Rajouri garden.
Statistical tools - Data will be arranged according to the requirement, Histogram, Bar graphs,
pie charts and frequency graph will be used to present the data.
Sampling media - Printed questionnaires. Closed-end questions was be used, which provide
answers that are easier to interpret and tabulate. A great care was taken in the wording and
ordering of questions. Simple, direct, unbiased wording questions, are used which are
arranged in a logical order.
29
Limitations
There were some limitations faced during the study as discussed below
1.) The study will be limited to only to Delhi region so results may be biased.
3.) The sample size of 50 might not represent the perception of whole population, as the
sample size is too small for total population of Delhi.
5.) One of the most influencing and most critical limitations is lack of expertise.
6.) The results of this study are limited to a specialty retail branded purchasing context.
7.) There may be numerous other variables that contribute to the development of customer
satisfaction, customer loyalty, and word of mouth communication which are briefly
touched upon below.
30
31
Data Analysis and interpretation
1) You consider store ambience as an important factor while opting for a particular
retail outlet.
Agree 16 32%
Neutral 11 22%
Disagree 4 8%
Strongly
Disagree 0 0%
20
18
16
14
12
10
19
8 16
6
11
4
2 4
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Interpretation: 38% of the respondents strongly agree that store ambience is an important factor
that influences foot traffic. Thus ambience should be inviting and comfortable. Customer should
enjoy coming to the store. The store atmosphere must be welcoming, attractive and friendly.
32
2) You give special attention to location of the store and convenience while selecting a
retail store.
Agree 19 38%
Neutral 7 14%
Disagree 1 2%
Strongly
Disagree 0 0%
25
20
15
23
10
19
5
7
1
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Interpretation: 46% respondents believe that location is also important for shopper traffic in a
store. Having a store at a good location where foot traffic can flow into the store can be just the
thing that can improve sales.
33
3) Product display and demonstration (visual merchandising) influence your choice
while making purchase decisions.
Agree 8 16%
Neutral 18 36%
Disagree 9 18%
Strongly
Disagree 3 6%
20
18
16
14
12
10
18
8
6
11
4 8 9
2
3
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Interpretation: 36% of the surveyed population is neutral towards how the products are
displayed and arranged in the store. However, 22% respondents strongly feel that visual
merchandising influences their store choice decisions. Therefore, application of more attractive
visual merchandising materials in their promotions will help to obtain better results.
34
4) You give special consideration to uniqueness of assortment available in the store.
Agree 12 24%
Neutral 2 4%
Disagree 0 0%
Strongly
Disagree 0 9%
40
35
30
25
20
36
15
10
5 12
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Interpretation: According to the survey 72% of the respondents give special consideration to
uniqueness of assortment available in the store. Successful retail store offers an optimized
assortment of products to their customers. The best product assortment strategies maximize
profit, minimize risk and increase overall sales.
35
5) The product range (prices) is specially considered as an important factor while
opting for a retail store
Agree 15 30%
Neutral 8 16%
Disagree 6 12%
Strongly
Disagree 0 0%
25
20
15
10 21
15
5
8
6
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Interpretation: The result of the study states that 42% of the surveyed population is strongly
influenced by the prices of the products in a retail outlet. Stores that are perceived to charge
lowest prices attract many consumers based on this fact alone.
36
6) Rebate and discounts on purchase are given special consideration while opting for a
retail outlet.
Agree 3 6%
Neutral 26 52%
Disagree 14 28%
Strongly
Disagree 0 0%
30
25
20
15
26
10
14
5 3
7
0
Strongly Agree Agree Neutral Disagree Strongly Disagree
Interpretation: Majority of the surveyed population i.e. 52% is neutral toward the rebates and
discounts offered by the stores. However 28% respondents disagree with this statement that they
give special consideration to rebate and discounts on purchase
37
7) The knowledge and services provided by the salesperson affect your decision while
opting for a retail store
Strongly Agree 4 8%
Agree 7 14%
Neutral 28 56%
Disagree 9 18%
Strongly
Disagree 2 4%
30
25
20
15
28
10
5 9
7 2
4
0
Strongly Agree Agree Neurtal Disagree Strongly Disagree
Interpretation: Majority of the surveyed population i.e. 56% is neutral toward the statement that
knowledge and services provided by the salesperson affect your decision while opting for a retail
store. 18% respondents disagree with this statement.
38
8) How far are you satisfied with the following factors for this retail outlet?
Extremely Extremely
Satisfied 5 10% Satisfied 11 22%
Dissatisfied 3 6% Dissatisfied 2 4%
Extremely Extremely
Dissatisfied 0 0% Dissatisfied 0 0%
Extremely Extremely
Satisfied 0 0% Satisfied 0 0%
Extremely Extremely
Dissatisfied 3 6% Dissatisfied 3 6%
Extremely Extremely
Satisfied 0 0% Satisfied 5 10%
Extremely Extremely
Dissatisfied 12 24% Dissatisfied 1 2%
39
100%
10% 8% 10%
90% 22% 24%
80% 38%
34% 34%
70%
47% Extremely Satisfied
60% 38% Satisfied
50% 54% Neutral
34% Dissatisfied
40% 34%
40% Extremely Dissatisfied
30%
20% 39% 36%
22% 16%
10% 24% 14%
0% 4% 4% 6% 6% 2%
Convience in approach Assortments Sales person services
Store Ambience Price of items Sales promotion offers
Interpretation: This graph shows the percentages of the people satisfied, dissatisfied with the
factors such as store ambience, convience in approach, price, assortments, promotional offers,
sales person services of Westside store.
40
Overall satisfaction level of the respondents
Reply of No. of
respondent respondents Percentage of respondents
Extremely
Satisfied 7 14%
Satisfied 17 34%
Neutral 21 42%
Dissatisfied 5 10%
Extremely
Dissatisfied 0 0%
7 5
Extremely Sat-
isfied
Satisfied
Neutral
Dissatisfied
Extremely Dis-
satisfied
17 21
Interpretation: 34% respondents are satisfied with the services offered by Westside retail store.
While 42% are neither satisfied nor dissatisfied.
41
9) Are the salesperson in the store (Rate the salesperson services according to you from
1 to 5, where 5 is extremely good and 1 is extremely bad)
100% 4%
10% 18%
90%
18% 26%
80%
70% 38%
60% 46% Very Good
42% 36%
50% Good
40% Average
30% 46% Bad
26% 26% Very Bad
20% 34%
10%
6% 8% 12%
0%
2% 2% 42
Humble and soft spoken Initiative of salesman to solve the problem
Easily Approachable Able to provide complete solution to your problem
10) Have you faced any problem with your store?
Only 9 out of 50 respondents i.e. 18% respondents have faced problem with the store.
Percentage of
Reply of respondent No. of respondents respondents
Quality of products 2 4%
Assortment size 2 4%
Employee behavior 0 0%
Others 5 10
3
5
2
1 2 2
0
Quality of products After sales services Assortment size Employee behavior Others
Interpretation: 18% respondents have faced some problem with this store regarding quality of
the products, size of the assortment, parking facility, space within the store and trial rooms.
43
Personal information of the respondents
Male 22 44%
Female 28 56%
22
Male
Female
28
Interpretation: Majority i.e. 56% of the respondents are female and 44% are male.
44
2) Age of the Respondents
Under 18 4 8%
19-25 21 42%
26-40 18 36%
40 Above 7 14%
4
7
Under 18
19- 25
26- 40
21
40 bove
18
Interpretation: Most of the respondents that visit retail stores are young i.e. between the age
brackets of 19-25. 42% respondents are 19 to 25 years old. 36% respondents lie between the age
bracket of 26- 40. 14% of the people surveyed are above 40 and only 8% are below 18 years of
age.
45
3) Occupation of the Respondents
Student 15 30%
Private
employee 15 30%
Government
employee 5 10%
Others 8 16%
8
15
Student
5
Private
employee
Self employed
Government
employee
7
Others
15
Interpretation: Majority of the respondents is students and private employees; their percentage
in the survey is 30% each. 16% respondents were from the others category; these were the house
wife and retired people. 4% of the surveyed population was self employed and rest of the 10%
was government employees.
46
4) Disposable income per month with the Respondents
No. of Percentage of
Reply of respondent respondents respondents
Interpretation: 68% of the surveyed population's monthly disposable income was less than Rs.
5,000. While 28% spend between Rs 5,001- Rs. 10,000 per month.
47
5) Respondents frequency of visiting the retail outlet per week
No. of Percentage of
Reply of respondent respondents respondents
Once 8 16%
8 5
Once
2-3 times
4-5 times
More than 5
14
times
23
Interpretation: Most of the respondents visit the store 2-3 times within a week. Their
percentage is 46%.
48
49
Findings and observations
1. Most of the respondents strongly agree that store ambience is an important factor that
influences foot traffic. Thus ambience should be inviting and comfortable. Customer
should enjoy coming to the store. The store atmosphere must be welcoming, attractive and
friendly.
2. Majority of respondents believe that location is also important for shopper traffic in a store.
Having a store at a good location where foot traffic can flow into the store can be just the
thing that can improve sales.
3. Most of the surveyed population is neutral towards how the products are displayed and
arranged in the store. However, 22% respondents strongly feel that visual merchandising
influences their store choice decisions. Therefore, application of more attractive visual
merchandising materials in their promotions will help to obtain better results.
4. According to the survey most of the respondents give special consideration to uniqueness
of assortment available in the store. Successful retail store offers an optimized assortment
of products to their customers. The best product assortment strategies maximize profit,
minimize risk and increase overall sales.
5. The result of the study states that 42% of the surveyed population is strongly influenced by
the prices of the products in a retail outlet. Stores that are perceived to charge lowest prices
attract many consumers based on this fact alone.
6. Nearly half of the surveyed population is neutral toward the rebates and discounts offered
by the stores. However 28% respondents disagree with this statement that they give special
consideration to rebate and discounts on purchase
7. Majority of the surveyed population is neutral toward the statement that knowledge and
services provided by the salesperson affect your decision while opting for a retail store.
18% respondents disagree with this statement.
50
8. 34% respondents are satisfied with the overall performance of Westside retail store. While
42% are neutral i.e. neither satisfied nor dissatisfied.
9. 18% respondents have faced some problem with this store regarding quality of the
products, size of the assortment, parking facility, space within the store and trial rooms.
10. Most of the respondents that visit retail stores are young i.e. between the age brackets of
19-25. 42% respondents are 19 to 25 years old. 36% respondents lie between the age
bracket of 26- 40. 14% of the people surveyed are above 40 and only 8% are below 18
years of age. Therefore the store should apply a more youth friendly approach.
11. Majority of the respondents is students and private employees; their percentage in the
survey is 30% each. 16% respondents were from the others category; these were the house
wife and retired people. 4% of the surveyed population was self employed and rest of the
10% was government employees.
12. 68% of the surveyed population's monthly disposable income was less than Rs. 5,000.
While 28% spend between Rs 5,001- Rs. 10,000 per month.
51
Conclusion
From all the details of the study I conclude that shopping at Westside is a delightful experience.
Its spacious and well laid out interior invites customers to browse through the extensive array of
clothing and home products. The store targets everyone in the family and all at reasonable prices
that make the customer smile all the way the cash point. Westside’s USP is ‘affordable style’; a
promise store has kept since it was first launched in 1998.
The ambience and warmth of the store along with the variety of designs and styles woo
customers the moment they step inside. On offer for women are exclusively designed casuals and
formals in western and Indian wear in basic clothing to very trendy wear. Men can look for
formal, casual and sporty apparel. Kid’s wear at Westside is casual, dressy and ethnic. The
lifestyle store is also a great place to look for accessories — jewellery, scarves, belts, bags,
footwear, etc. The household section is contemporary with well-coordinated table linens,
artefacts, crockery, home accessories and furnishings.
Westside ensures that it does not follow fashion trends blindly. Through surveys, it understands
what consumers want and what appeals to them, and stocks merchandise accordingly. It also
Indianises international fashion trends so that the customers can buy fashion that they are
comfortable with. Apart from regular in-house brands, the store has Gia for the plus-sized
woman. Westside is also the master franchisee for Sicily, an upper end Benetton brand, in India.
Westside cares. Customer complaints are resolved within 24-hours and the stores have a no-
questions-asked exchange policy. For quality defects one can return the product within one year
of purchase. Such instances however are very few as Westside quality standards are stringent in
order to ensure that consumers do not face problems with merchandise bought at the store.
52
Recommendations and suggestions
A critical factor in a retail store’s success is its strategy to attract shoppers & keep them in
stores- the amount of time shoppers spend in a store is perhaps the single most important
factor in determining how much they will buy. To ensure that customers enjoy coming
to the store Westside should emphasis on its store ambience.
Westside should also develop and successfully introduced a range of new brands
especially suited to the Indian palate. What has also given Westside a competitive edge is
that in addition to an extensive range of internationally renowned brands like Spykar, Lee
and Fast Track they also offer the option of a less known brands for low budget
customers. It should focus on the same strategy.
Westside caters to not only the clothing needs and desires of its customers. They have bed
sheets, kitchenware, jewellery, perfumes, baby products, household items, etc. Apart
from this they should also have a few additions like Books, Music items; Electronic
gadgets etc can also be added to the products available inside their store. The demand for
the above products is always in the market.
The in-store experience in Westside should be very delightful. Their fully skilled and
trained staff should be able to cater to the needs of the public in the right way. They
should not pounce upon the customer as soon as he enters the store. They should wait till
the time a customer starts selecting and then they may come and help. This way the
customer gets acclimatize with the store and the environment.
To increase more footfalls more promotional activities must be carried out. For this
Westside can either offer more discounts or increase their advertisements. Increase in the
number of footfalls will lead to increase in sales.
The number of trial rooms available at Westside is very less as compared to the number
of people coming. This usually results in long queues and waiting by customers. Install
more full length mirrors inside the store so as to assist the customers to make better
purchase decisions.
Westside should maximize product affordance by focusing a more cost effective supply
chain management. They should directly pick up the goods from the manufacturer thus
ensuring low price tag at their store.
The store should focus on simplifying the product display; showcasing new items and
new ideas and minimizing the clutter.
53
54
Proposed Questionnaire
Dear Respondent,
I am a student of Tecnia institute of advanced studies, Delhi and doing a research for a study for
which I intend to pose a questionnaire aimed at analyzing the Situational factors influencing
customers while selecting a retail outlet. Your cooperation is deeply solicited to provide the
relevant information. I assure that information will be kept confidential.
1. You consider store ambience as an important factor while opting for a particular retail outlet.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
2. You give special attention to location of the store and convenience while selecting a retail
store.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
3. Product display and demonstration (visual merchandising) influence your choice while making
purchase decisions.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
55
4. You give special consideration to uniqueness of assortment available in the store.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
5. The product range (prices) is specially considered as an important factor while opting for a
retail store
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
6. Rebate and discounts on purchase are given special consideration while opting for a retail
outlet.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
7. The knowledge and services provided by the salesperson affect your decision while opting for
a retail store
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
56
8. How far are you satisfied with the following factors for this retail outlet?
Statement 1 2 3 4 5
Store Ambience
Convenience in approach
Price of the items
Assortment
Sales Promotion Offers
Sales person Services
9. Are the salesperson in the store (Rate the salesperson services according to you from 1 to 5,
where 5 is extremely good and 1 is extremely bad)
Statement 1 2 3 4 5
Easily approachable
Humble and Soft Spoken
Able to provide Complete solution to your problems
Initiative of salesman to solve the problem
10. Have you faced any problem with your store? ___________
Quality of products
After sales service
Assortment size
Employee behavior
Any Other (Specify)
57
11. Age of the respondent
Under 18
19-25 years
26-40 years
40 above
Student
Private employee
Self employed
Government employee
Others (Please mention)
13. Gender
Male
Female
Once
2-3 times
4-5 times
More than 5 times
58
Bibliography
http://www.esnips.com/
http://www.wikipedia.org/
http://www.mywestside.com/
http://www.indiaretailing.com/
http://www.retailangle.com/
http://www.indiaretailnews.com/
http://www.financialexpress.com/
http://www.indiaretailbiz.com/blog/
Baker, J., D. Grewal, and Levy 1992, ‘ An Experimental Approach to Making Retail
Store Environment Decisions’, Journal of Retailing, Vol. 68, Winter, pp.445-60
Harris, E. & Strout, E. (2001). Keeping customers happy. Sales and Marketing
Management, April, 153(4), 69.
59