REPORT ON THE MARKET SURVEY DONE ON THE CUSTOMER SATISFACTION ON THE SERVICES OFFERED BY RELIANCE FRESH RETAIL SHOWROOM

AT THODUPUZHA.

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR COMPLETION OF SERVICE MARKETING PAPER (III SEMESTER, MBA) AT DC SCHOOL OF MANAGEMENT AND TECHNOLOGY

SUBMITTED BY ULLAS UDAYAKUMAR

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DC School of Management and Technology, Pullikanam, Vagamon

2010-2012 DECLARATION I Ullas Udayakumar, third semester MBA student of DC School of Management And Technology do hereby declare that this market survey report on A Study on the Customer Satisfaction Survey done on the services offered by Reliance Fresh Retails Showroom at Thodupuzha in partial fulfillment of the requirement for the completion of Service Marketing paper of III Semester MBA Course is a bonafide study that I have done. I also declare that this report has not been previously formed the basis of award of any Degree, Diploma, Associateship, Fellowship or any other similar title of this or any other university or institution.

Place: Vagamon Date: 29/01/2012 ULLAS UDAYAKUMAR

ACKNOWLEDGEMENT

First of all I would like to thank God Almighty for His love, mercy and abundant grace that he has showered upon me during my survey period and preparations of the report. I would like to express my sincere thanks to Mr. Balakrishnan Menon, faculty of Services Marketing, for giving me an opportunity to do the Study. I would also like to express my sincere thanks to the Management & Staff of Reliance Fresh Store, Thodupuzha for cooperating with me in the happening of this survey. I also extend my gratitude to all the customers of Reliance Fresh, Thodupuzha, who have readily co-operated with much patience in giving necessary and true information needed for the study. Finally I would like to express my sincere thanks and gratitude to my friends, parents and all my well wishers who have provided all necessary support to make this Survey a success. ULLAS UDAYAKUMAR

INTRODUCTION AND BACKGROUND

Quality in a service organization is a measure of the extent to which the service delivered meets customers expectations because to the customer, quality is all about Meeting or exceeding their expectation. The National quality institute web site defined quality as follows Quality is in the eye of the beholder. Yet we all recognize it when we See it Quality is when you are so satisfied with a product or service That you go out of your way to recommend it to other people There is a tendency to think of quality as being upscale, first class and expensive. In fact, quality can be achieved at all price levels if the need and desires of the customers are met, and exceeded. The nature of most services is such that the customer is present in the delivery process. This means that the perception of quality is influenced not only by the service outcome but also by the service processes. Reliance fresh is a store, which provides services to the customers. In this project it is estimated that to what extent the quality service is by reliance fresh and what role does the marketers play in delivering high quality goods and services to get the target customers. For this I have conducted a Net Promoter Score Customer Satisfaction Survey among the customers of Reliance Fresh store in Thodupuzha.

SERVICE MARKETING MIX

The

service

marketing

mix

comprises

off

the

7ps.

These

include:

Product Price Place Promotion People Process Physical Evidence

The first 4 Ps are commonly known. But Services Marketing gives more emphasis to the last 3 Ps ie. People, Process and Physical Evidence. Lets see these 3 Ps in detail.

People An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that consumers are paying for. Many British organisations aim to apply for the Investors In People accreditation, which tells consumers that staff are taken care off by the company and they are trained to certain standards.

Process

Refers to the systems used to assist the organization in delivering the service. Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes. What was the process that allowed you to obtain an efficient service delivery? Banks that send out Credit Cards automatically when their customers old one has expired again require an efficient process to identify expiry dates and renewal. An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company.

Physical Evidence Where is the service being delivered? Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organisation. If you walk into a restaurant your expectations are of a clean, friendly environment. On an aircraft if you travel first class you expect enough room to be able to lay down! Physical evidence is an essential ingredient of the service mix, consumers will make perceptions based on their sight of the service provision which will have an impact on the organisations perceptual plan of the service.

SERVICESCAPES

Servicescapes may be defined as the environment in which the service is assembled and in which the seller and customer interact, combined with tangible commodities that facilitate performance or communication of the service. The ambience in which the service encounter is happening will create a lasting impact in the customers mind. If you were to try to describe the differences a customer encountered when entering a branch of say like McDonald's compared with a small family restaurant, the concept of Servicescapes may prove useful. Physical evidence consist of servicescape combined with the tangible elements, so servicescape is a part of physical evidence. In the Reliance Fresh stores, the customer experience is very great. The main thing is that it can be considered as One-Stop-Shop-For-AllPurchases. The store sells all sorts of Fast Moving Consumer Durables, fresh fruits, vegetables etc. The ambience is also very great. There is product arrangement is very attractive to the customers eyes. The goods are arranged in categories ie. similar products are arranged together. The milk product like milk, ghee, curd, cheese etc. are kept in cooled racks. In the fruits and vegetable section the customer has the freedom to select his own quantity. The customer can spend as much time in the store as he / she wants. No bullying is done from the employees parts for immediate clearance from the store. The employees are given special training in customer-interaction since through the encounters happen. The whole store is being monitored through circuit cameras and the store manager is always ready to interfere if any situation happens. The store is giving several offers like discounts, freebies, extra quantity, bundle offers. They are also having customer loyalty cards which make the customer entitled for more offers. The layout of the store is also very welcoming. The lighting, arrangements, layout of the display racks, the display-styles, the in-shops etc gives the customer a new experience and make them come back for more purchases. All these create a large customer pool for the store. Reliance Fresh is very much careful in offering its customers a good memory about the store. They are having high competition in the market not only from retail chains of TATA, Triveni, and Supplyco but also from local kirana shops. So they always give a personal touch to each customers experiences.

SERVICE GAPS PROVIDER SERVICE GAPS In the service quality model, there are two kinds of Service Gaps Customer Gaps and Provider Gaps. Customer Gaps means the gap between the customers expected service and the customers perceived service.

There are four Provider Gaps. They are

1. Knowledge Gap not knowing what the customers expect.

2. Service Design and Standards Gap not having the right service designs and standards. 3. Service Delivery Gap not delivering to service standards. 4. Communication Gap not matching performance to promises.

From the survey conducted, what I could find out is that Reliance Fresh store has achieved to narrow the Customer and Provider Gap to a great extent. They are providing quality services to the customers. The knowledge gap is narrowed by giving their customers what they need. They have achieved it through conducting Market Research and Surveys among their customers and potential customers. All over India they are adopting this technique. The service design and standards gap is narrowed by designing their services and setting their standards according to the surveys and researches conducted in the market. The service delivery gap is narrowed by sticking on to the service standard policies adopted by the company. The employees are given customer interaction training before assigned to the stores. The service encounters are made as happy and memorable, so that they become regular and loyal customers. The communication gaps are closed by delivering whatever is promised to the customer. No over-promising is done by the store. Whatever offers publicized, the customer is entitled to it. During my survey there was an incident whereby the customer was given some offers, which even though the store has publicized, the customer had not known about that. Its definite that there is 100% percent chance this particular customer will be loyal towards till his lifetime. This particular customer , when I have interviewed has given very excellent comments about the stores performance.

By keeping up in all these things, the customer expectation gaps can be narrowed to a great extent. If they manage to perform according to the

customers expectations, then they surely can be the leader in this industry. Fortunately Reliance Fresh is such a business.

SERVICE QUALITY MODEL RATER

Based on this service quality model, researchers identified the 5 determinants of service quality, in order of importance. They are 1). RELIABILITY- The ability to perform the promised service dependably and accurately. 2). RESPONSIVENESS- The willingness to help customers and to provide prompt service. 3). ASSURANCE The knowledge and courtesy of employees and their ability to convert trust and confidence. 4). EMPATHY The provision of caring individualized attention to customers. 5). TANGIBLES The appearance of physical facilities, equipment, personnel, and communication material.

Reliance Fresh store has scored a good position in all the factors of the RATER based on the Service Quality Model. Their ever-increasing

popularity and customer-pool is a very good example for this. When the gaps (both Customer Gaps and Provider Gaps) are narrowed, the above factors are automatically met in the most desired manner as far as the customer is concerned. Thus the service quality will also be excellent since the services are tailored according to the customers needs. Reliance Freshs services are very much reliable. In my interaction with the customers, many have vouched for this. The responsiveness of the employee team is also worth telling. I myself have witnessed this. They are always willing to do any help for their customers. All customers are accompanied by them. They also know every detail about the product displayed in the store. This had made almost all the customer much delightful in their encounters. The assurance of the employee team in their knowledge and courtesy is much liked by the customers. The staffs are always feeling empathetic towards the customers. They are trained to do so. The customers will get a feeling that they are being given individual attention. That is the quality and promptness of their service. No customers have to leave the store grumbling. The employees are very much disciplined in the store. They are always in uniform. The store also is of high ambience. The customer will find it tempting to purchase more and more. Everything is much professional here. Even the equipments used are customized for the store. The billing machines, racks, display panels, carriers, in-shops etc are unique and the customers will find it highly attractive and likable.

MARKET POSITIONING AND MARKET DIFFERENTIATION

Reliance Fresh is brand which can be seen and heard often. Their positioning strategies are very deep and structured. They always will be present in all media. The brand name of Reliance is their greatest weapon. I was told that a large amount was kept aside for marketing the brand and to position it in the minds of the target customers. The details of the amount were not disclosed to me, but they told it is quite large. For Retail store like Reliance Fresh, with so much competition in the market, the market positioning is something quite important to look into. They usually dont miss any opportunity to be in front of the customers both existing and potential. They always aim for the recalling element in the consumers mind. They always participate in the local events. Many hoardings and flex-boards are displayed in and around the locality. Many schemes are offered during seasons and also off-seasons.

Reliance Fresh, or retails giants similar to them, is trying to bring-in a supermarket or mall concept in todays consumers minds. But without any differentiation in their services, the customers will be confused on which one to select. For a service delivering business entity, differentiating their service from the similar competitor is a very tiresome job. But Reliance has managed to bring differentiation to an extent. The best example is their sales force. They are properly trained on customer interaction. They try to create the service-encounter memorable for the customer, so that they will recall the same store when the need for shopping arises. Reliance Fresh has given their customers a membership card. Those customers who possess this card are entitled for additional discounts and offers other than the normally attractive offers. They try to bring in lot of new varieties to attract the ever-demanding customer. Schemes are offered during seasons and off-seasons. They also market their own brands or Home Brands. They will be cheaper than the regular brands and will create a good image among the customers. Also they are unique products which are available only in Reliance stores. These are the major ways through which Reliance Fresh tries to bring did=fferentiation to their services.

ROLE OF CUSTOMERS AND EMPLOYEES IN THE SERVICES

Both the employees as well as the customers have important role in service delivery. Both of them can determine the quality of the service. Lets see the role of customer in improving quality of service delivery. By giving p roper feedback and opinions, customers can help the service deliverer to find out if there is any problem with their system. This proper communication between the customer and the employees will help in the closing of the provider as well as the customer gaps. The customer must be aware of his rights as well as responsibilities. If the promised service is not delivered, then its the duty / right of the customer to demand for it. But their silence there will make matter worse. In Reliance Fresh store, the rights of the customer are displayed. The customer has to be educated on his duties. This will help in developing the services offered to the expected level of the customer.

The employees have the most important role in the improvement of quality in service delivering. They should be well educated and well trained. They are the point of the actual Service Encounters. So the decide the fate of the firm. The behavior of the employee can make or break the service delivery. In order to close the gaps, especially provider gaps, the role of employees is great. Their mannerism, their knowledge, the way in which they communicate, their courtesy towards the customer etc. can mean a lot in the customers perception towards the service and the service-provider.

When both the employee and the customer have understood their respective roles, then the service delivery will be easy and to a maximum extent error free.

NET PROMOTER SCORE CUSTOMER SATISFACTION SURVEY

For conducting a survey for the customer satisfaction of the services offered by Reliance Fresh store, Thodupuzha, I have decided to use the following questionnaire. This method is called Net Promoter Score approach. Here the customers of the store are asked one simple question On a scale of 1 to 10 (1 being lowest rating and 10 being the highest), how do you rate and recommend the services to your friends and colleagues? Those who go for the rating from 8 10 are considered the promoters of the store. They give positive word-of-mouth impression about the store and the services being offered. Those who go for the rating from 6 7 are considered Neutral. They wont do any publicity. The people who choose 1 5 are termed Detractors. They are to be dealt with since they will give a negative word-of-mouth publicity to the firm. They may have some bad experiences from the firm. They may damage your reputation before the existing and potential customers. The customers coming under the Neutral category may

eventually go to the Detractor category if they continue to be unattended. After the survey, out of the respondents, a Net Promoter Score is calculated. Net Promoter Score = (Number of Promoters Number of Detractors) / Total * 100 Here, I have managed to interact with 26 customers. The rest were not interested in participating. From those who have participated, the details which I got are given below.