1. Introduction 1.

1 Background of the report: Customer service is one of the most important parts of your company's overall strategy to conducting business. Without customers there is really no business. If this is the case, why is it mostly everyone as consumers can easily cite examples of poor customer service in their daily lives? Every company either has or thinks it has good customer service. However, if certain steps are not taken to ensure this, the reality of their situation is often far worse than their current perceptions.

1.2 Objectives 1.2.1 Broad Objective: to find out importance of various attributes of customer service of supermarket in Bangladesh. 1.2.2 Specific Objective: To identify the factors those are most important to customers.

1.3 Significance of the Study The unique contribution of this research is further based on the introduction of the importance of customer service attributes as a whole (systems approach) and exploring the underlying inter relationship of the individual elements of customer service in terms of the service quality in supermarkets and ultimately, store loyalty.

1.4 Scope of the Study The focus was on the supermarkets that are prominent in Dhaka Metropoliton. Agora Super Shop, Nandan Mega Shop as well as Mina Bazar and Prince Bazaar. Respondents are randomly selected from different outlets while they are shopping.

1.5 Methodology In order to prepare the report both primaries and secondary data are needed. Primary data has been analyzed for preparing the report. This study is mainly depended on primary data that was collected through direct survey. A questionnaire consists of mainly closedended questions was used to collect data. Data collection was done on a random basis. The results are represented through pie diagrams, bar charts and mean rating of likerts 1

scale. Research findings came out through analyzing those data. Data and necessary information were also collected from various websites including official websites of different supermarkets. 1.5.1 Sample design Primary data is collected here to represent the current situation of the company. To prepare the report, primary data is collected by the questionnaires from the response of some customers. Here direct communication is essential for gathering required data. As the report covers the sample is 40 for best analysis purpose.

1.5.2 Data gathering Primary data is collected by the questionnaires and Secondary data is collected from the internet, books and journal.

1.5.3 Data processing and analysis To analyze data, different factors are used in the direct communication through questionnaires to identify customer satisfaction level. Proper designing of factors can help to achieve the companys desire goal in a most efficient way. Summative Rating method of analysis was used in the analysis these research questions. The Assigned weight to the various alternatives is Very Important =5, Important =4, Uncertain =3, Less Important =2, Unimportant =1

Mean rating was used for the variables .To get the at the mean of each table this formula was used

Mean =

X 

Where f =frequency of respondent x=weight assigned to each alternatives

Formula for calculation as used in the study is by multiplication of number of respondents under each option with the weight assigned to the option and summing up to divide by the total number of respondents in order to give the mean rating.

The decision rule is that the mean ( X ) of the total response falls above 4.5 to 5.00 means Very Important, 3.5 to 4.49 means Important, 2.5 to 3.49 means Moderately Important 1.5 to 2.49 means Less Important 0.0 to 1.49 point means Unimportant

1.6 Limitations of the Study Supermarkets basic strategy is widening their market through their emerging country-wide network. As a result of this strategy, the customers are from different segments. Moreover, the customers are from all main cities (Chittagong, Khulna, Sylhet etc) over Bangladesh and scattered all over the country. But the sample that used to conduct survey was only from Dhaka Metropoliton. Time limitation is the main reason behind this lack-age. So, it was not a perfectly representative sample. Moreover, it was not possible to get all required internal information of the company as these are treated as confidential company information.

2. Industry Overview 2.1 Supermarkets in Bangladesh:

Superstores are set to boom in the country as the current market players are planning to open several hundred more outlets in the next few years to cope with the rising demand from the consumers. With a strong 15-20 per cent annual sales growth, about 30 companies with more than 200 outlets have already made foray into the industry since Rahimafrooz, one of the largest business groups in Bangladesh, introduced Agora, a chain superstore, in the capital a decade ago. The landscape began to change in 2000 when Rahimafrooz Superstores, operating Agora, moved in to seize a slice of the retailing and wholesale trade, which has been growing at 6 per cent, on an average, annually. The Main Supermarkets are 1. Agora 2. Nandan 3. Minabazar 4. Shawpno 5. Prince Bazar etc Every superstore has multiple outlet across the main cities of Bangladesh. The annual turnover of the superstores now stands at around Tk 15.0 billion (1500 crore), according to Bangladesh Supermarket Owners Association (BSOA).

2.2 Current Scenario:

Dhaka-based Agora now runs four outlets, Meena Bazar nine including seven in Dhaka, PQS five, Prince Bazar two, Nandan five and Swapno 70 including 30 outside the capital. Bangladesh Rifles (BDR) also runs 11 stores in the capital. According to operators, more than 600 chain retail outlets are expected to be set up in the next five years in an attempt to attract more customers. The supermarket culture is playing a vital role in generating employment, with a single store providing jobs to around 50 people. "The massive expansion plan by various Supermarkets has successfully made a breakthrough in the urban lifestyle with the idea of "all essential commodities under one roof." In the early days of the business, around 500 customers would visit a supermarket outlet daily. Now some 5,000 customers come to a store every day.

2.3 Products and Services: Hassle-free shopping environment, hygienic commodities, fresh vegetables, meat and fish at the supermarkets are earning appreciation of the customers, market operators said. Baby Care, Beverages, Confectionary, Drinks, Fish, Fruits, Health Food, Meat, Oils/Fats, Powder Milk, Cereals, Cleaning Needs Condiments, Gift Hamper, Grocery, Paper

Accessories, Pastas, Perfume, Processed Milk/ Grains Spices, Spreads, Tea/Coffee, Toiletries. 2.4Controversy Supermarkets has been criticised for its tactics, including allegedly misleading consumers with a "phoney" price cut. However, while individual cases can be cited, Agora along with the other major supermarkets is experiencing price deflation.

3. Theoretical aspects
3.1 Customer service defined Customer service (CS) is broadly defined as the combination of activities/strategies offered by retailers in an effort to increase service quality, i.e. a shopping experience that is perceived to be more rewarding. CS is generally described in terms of the elements of the marketing mix of an organization whereby certain elements of the marketing mix (product, place, price, promotion) are intentionally manipulated to distinguish the services of one organization from those of another. For the purpose of this research three additional factors were included, namely people, and processes and physical evidence to capture the maximum influencing variables. These elements eventually represent the resources or capabilities of a store and will be addressed as such in the conclusive recommendations for optimal CS/SQ. CS is a means-to-end process based on a series of activities by which a business interacts with its customers. 3.2 Basic elements of customer service The elements of CS that may contribute to SQ comprise of the so-called marketing mix that include the variables: product, price, place, and promotion. These were expanded in later years in terms of service delivery to include contextual cues (. Because services are intangible and cannot be tested prior to purchase, consumers generally look for tangible evidence (contextual cues) of what they are about to experience in a given service encounter. Three such contextual cues were consequently identified and added as elements of customer service, namely physical evidence/retail policies; process; and participants. 3.2.1Product Product refers to a bundle of tangible and intangible attributes required/desired by customers. In the broadest sense, a product can be defined as a collection of need satisfying utilities. Anything that can be sensed by humans and that can provide need satisfaction may be regarded as a product, whether it is a visible object or an intangible personality of a friendly salesperson. Product item A distinct unit within a product line t hat is distinguishable by size, price, appearance, function, or some other attribute. Product line A group of products that are closely related, either because they meet the same 6

need, function in a similar manner, or share some other characteristic such as green products that are environmentally friendly (www.freeworld.com). Packaging/container Packaging eventually forms part of the product and includes all of the components of a product decision that are relevant to the design and wrapping, with the intention to protect, store, handle, transport and/or identify it (Van der Walt et al, 1998:230). Packaging became a major issue in Bangladesh recently because supermarkets were required through legislation to use more expensive stronger bags that could no longer be provided free of charge. Brand The brand refers to the image attributes that are associated with the product. 3.2.2 Place/physical surroundings The place includes all aspects involved in getting products to consumers in the right location at the right time . Apart from the physical structure of bricks and mortar, the place includes everything from the distribution channel and lay out to the atmosphere that is created in the store. A place that meets or exceeds consumers needs may be considered as being worth revisiting.

Todays customers apparently desire hedonic experiences (multi sensory, fantasy, and emotive aspects of consumption) to the extent that, in their marketing strategies, retailers have to determine beforehand how much the target market would be willing to pay for atmosphere and physical resources such as the convenience and cost of parking .

3.2.3 Price Price refers to the amount of money that is paid for a product. When deciding whether or not to buy a product, one of the first things a consumer typically sees, is the price of the item. Price is often the only obvious difference between one brand of a product and another. Price is considered acceptable if a consumer perceives the value of the product that was purchased to equal or exceed the value of the money that was spent. While some customers are typified as bargain hunters, others prefer to pay extra for quality and even demand it. Depending on the importance of price in a consumers interpretation of CS, price could thus be a very important determinant of a consumers patronage of a specific store. Price can affect peoples perceptions of the quality and value of an item and can influence whether or not the item is purchased. 7

3.2.4 Promotion Promotion refers to all forms of marketing communication that are meant to be read, viewed or heard by the target market as a form of communication of a stores offer in an effort to influence and stimulate customers purchase decisions and to satisfy their needs in such a way that they will return to the store. Word of mouth is also part of the communication reality and therefore of promotion: organizations often underestimate their control over word of mouth communication. Meticulous attention to customers needs will enhance positive word of mouth.

3.2.5 People/salespeople/personnel The human factor apparently often defines service quality. Goff et al found that salespeoples behaviour with respect to selling orientation-customer orientation (SOCO) significantly influences customers satisfaction with the salesperson, dealer, product as well as the manufacturers. Relationship retailing is therefore recommended to establish ongoing customer relationships to provide high l evels of customer satisfaction with potential store loyalty. The very existence of many retailers often depends on their sales personnel who represent their employers (retailers) in their interaction with consumers. Research findings suggest that intense efforts towards product development and promotion can be negated by the poor performance of salespeople. The approach adopted by a salesperson is seen as the key to customer satisfaction. The degree to which a customer trusts a salesperson will be positively influenced by the belief that the salesperson has the customers best interests at heart (customer-oriented), and negatively influenced if the salesperson appears to be operating in his own best interests (sales-oriented/hard sell approach). A salespersons devoted customerorientation and expertise will thus positively affect consumer satisfaction. 3.2.6 Processes Processes include all the procedures, mechanisms and flow of activities through which services are either consumed or experienced by customers. Processes may include components such as dependability (which implies keeping promises and doing it well) and effective compliant handling). Dependability refers to supply of merchandise; quality guarantees; exchange policies; customer orientation and facilitation; fast sales transactions and honest assistance. An impression of dependability creates the impression that the retailer is concerned with customers and adheres to their

consumer rights, which will enhance customer loyalty to the extent that service quality may be perceived as

3.2.7 Retail policies/Physical evidence Retail policies refer to all strategies related to prices and brand assortment that woul d attract and retain customers. In Bangladesh this is considered a problem due to our multiplicity of cultural groups and many divergent lifestyles that manifest in terms of different needs and wants that are difficult to satisfy simultaneously compared to smaller, more homogeneous groups.

4. Anal i and Findings

4.1 Respondents on the basis of Gender

FIGURE 4.1: GENDER OF PARTICIPANTS TAB 4.1: GENDER OF THE PARTICIPANTS (n = 40) Gender Male Female Total Frequency 10 30 (n = 40) Percent e 5 75 100.00

Ta le 4.1 and Fi ure 4.1 reflect t e gender di tribution of t e participant in t i research project. The majority was female, which supports the general belief that women are usually held responsible for the majority of grocery shopping.

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4.2 Respondents on the basis of occupation

Total Respondents - 40 Students Service Holders Business Housewife Table 4.2 Respondents on the basis of occupation 3 4 11

Figure 4.2 Respondents on the basis of occupation

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4.3 Respondents on the basis of Age The minimum age for participation in the study was 18 years. Almost 67% of the participants ). were between the ages of 6 and 35 (Table 4.3; Figure 4.3

TAB E 4.3: AGE OF THE PARTICIPANTS (n = 40) Age group 18- 5 6-35 36-45 45+ 7 Frequency 4 7 Percentage 10 67 18 5

4.4 Respondents Generall Shops in Total Respondents - 40 Agora Nandan Mina Bazar Prince Bazar Other 15 7 4 14 0

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4.5 Reason Behind Choosing Super Market

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4.6 Place Related Attributes Sl Topics Unimportant Less Important (1) 1. The store must be 0 (2) 0 (3) 4 (4) 10 Uncertain Important Very Important (5) 26 4.55
X

located in convenient and safe place Decision: The mean Rate 4.55 indicates that location of supermarket is very important for customer

Sl

Topics

Unimportant

Less Important

Uncertain Important Very Important (3) 8 (4) 16 (5) 10

(1) 2 Well Area located parking 0

(2) 6

3.1 5

Decision: The mean Rate 3.15 indicates that parking location of supermarket is moderately important for customer.

4.7 Physical Evidence Related Attributes Sl Topics Unimportant Less Important (1) 3 Comfortable Temperature Decision: The mean Rate 4.05 indicates that Comfortable in-store Temperature in supermarket is important for customer. in-store 0 (2) 4 (3) 4 (4) 18 Uncertain Important Very Important (5) 14 4.05
X

Sl

Topics

Unimportant

Less Important

Uncertain Important Very Important (3) 4 (4) 14 (5) 18

(1) 4 Clear/visible Signage to 0 indicate product location

(2) 4

4.15

Decision: The mean Rate 4.15 indicates that visible Signage of supermarket is important for customer.

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Sl

Topics

Unimportant

Less Important

Uncertain Important Very Important (3) 8 (4) 16 (5) 16

(1) 5 Practical, logical shelf 0 layout

(2) 0

4.1

Decision: The mean Rate 4.1 indicates that Practical, logical shelf layout in supermarket is important for customer.

Sl

Topics

Unimportant

Less Important

Uncertain Important Very Important (3) 4 (4) 15 (5) 7

(1) 6 An appealing environment aesthetically 2 in store

(2) 12

3.3 3

Decision: The mean Rate 3.33 indicates that location of supermarket is moderately important for customer.

4.8 Product Related Attributes Sl Topics Unimportant Less Important (1) 7 A large product variety 0 (2) 0 (3) 3 (4) 11 Uncertain Important Very Important (5) 26
4.58

Decision: The mean Rate 4.58 indicates that large product variety is very important for customer.

Sl

Topics

Unimportant

Less Important

Uncertain Important Very Important (3) 4 (4) 14 (5) 20

(1) 8 Products quality of excellent 0

(2) 2

4.25

Decision: The mean Rate 4.25 indicates that Products of excellent quality in supermarket is important for customer. 16

Sl

Topics

Unimportant

Less Important

Uncertain Important Very Important (3) 2 (4) 17 (5)

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(1) 9 Availability products of new 0

(2) 2

4.33

Decision: The mean Rate 4.33 indicates that Availability of new products in supermarket is important for customer. 4.9 Personnel Related Attributes Sl Topics Unimportant Less Important (1) 10 Friendly, enthusiastic 0 (2) 1 (3) 4 (4) 21 Uncertain Important Very Important (5) 14 4.2
X

staff assistance Decision: The mean Rate 4.15 indicates that l Friendly, enthusiastic staff assistance in supermarket is important for customer.

Sl

Topics

Unimportant

Less Important

Uncertain Important Very Important (3) 1 (4) 24 (5) 13

(1) 11 Well trained / 0

(2) 2

4.2

knowledgeable staff Decision: The mean Rate 4.2 indicates that Well trained / knowledgeable staff supermarket is important for customer. in

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4.10 Process Related Attributes Sl Topics Unimportant Less Important (1) 12 Short queues at the 4 4 14 18
4.15

Uncertain Important Very Important (3) (4) (5)

(2)

cashiers; waiting time

minimum 0

Decision: The mean Rate 4.15 indicates that Short queues at the cashiers in supermarket is important for customer.

Sl

Topics

Unimportant

Less Important

Uncertain Important Very Important (3) (4) (5)

(1) 13 Availability credit/debit of

(2)

card 4 facilities, in store ATM

14

14

Decision: The mean Rate 3 indicates that Availability of credit/debit card facilities, in store ATM s in supermarket is moderately important for customer.

4.11 Price Related Attributes Sl Topics Unimportant Less Important (1) 14 Lowest prices, cheapest products 10 14 10 6 0 (2) (3) (4) Uncertain Important Very Important (5) 2.3 0
X

Decision: The mean Rate 2.3 indicates that Lowest prices, cheapest products in supermarket is Less Important for customer

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4.12 Promotion Related Attributes

Sl

Topics

Unimportant

Less Important

Uncertain Important Very Important (3) 3 (4) 14 (5) 11

(1) 15 Regular Promotions and 5 advertising specials of store

(2) 7

3.48

Decision: The mean Rate 3.48 indicates Regular Promotions and advertising of supermarket is moderately important for customer

4.13 Major Findings :

1. Most of the customers (almost 28%) are more concerned with Process related attributes. 2. The Following attributes that customers consider very important Location of supermarket.  Variety of Product 3. The Following attributes that customers consider important         Well located parking Area Comfortable in-store Temperature Clear/visible Signage to indicate product location Practical, logical shelf layout Availability of new products Products of excellent quality Friendly, enthusiastic staff assistance Well trained / knowledgeable staff Short queues at the cashiers; minimum waiting time

4. The Following attributes that customers consider moderately important An aesthetically appealing in store environment  Well located parking Area  Availability of credit/debit card facilities, in store ATM 5. The Following attributes that customers consider less important Lowest prices, cheapest products

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5. Recommendation and Conclusion:

5.1 Recommendation: 1. Supermarket outlet should be established in convenience and safe place. 2. Variety of quality products must be ensured. 3. Physical evidence like Signage, temperature, shelf etc should be palace and set logically 4. As customers are not much concerned about cheap products at lower price, then quality should be assured. 5. Credit card/Debit card/Atm facilities as well as Internet shopping should be introduced.

5.2 Conclusion: It is clear to that good customer service is vital. It is aware that satisfied customers return to the business and ensure that healthy profits are made. They also help to build a good reputation. What customers do and don't like. It knows that if customers receive good service 'This time, next time, every time,' then they are more likely to return.

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