Final report(on super store)

A RESEARCH ON SUPER-STORE BUSINESS IN BANGLADESH – CONCENTRATION

AREA INCLUDES THE FACTORS FACILITATES ITS EXPANSION

A RESEARCH ON SUPER-STORE BUSINESS IN BANGLADESH – CONCENTRATION AREA INCLUDES THE FACTORS

FACILITATES ITS EXPANSION

Prepared for: Mr. Oli Ahad Thakur

- Senior Lecturer

Prepared by: Name ID Ehmed Kushal Imtiaz 043200020 K. M. Monsurul Aziz 043200082 Mohammad Abdullah Zubair Bhuiayn 043200098

Semester – 9th

Program - Bachelor of Business Administration

Eastern University House # 15/2, Road # 3, Dhanmondi R/A, Dhaka-1205

October 8, 2007

October 8, 2007 Mr. Oli Ahad Thakur Senior Lecturer Faculty of Business Administration Eastern University Dear Sir: As a part of our BUS 330 course curriculum, we are pleased to submit you this research report. In our regular class, you have orally authorized us to do this report on a particular topic. The research topic has selected by the group members and the topic is really interesting. The research topic is - “A research on Super-store business in Bangladesh – Concentration area includes the factors facilitate its expansion”. Super-store business in Bangladesh is in the growth stage and very few research works have been conducted in this sector. For this reason, we chose this area as our research field. Our research is an exploratory one. This research has been conducted due to enhance the reader’s knowledge. Kindly accept our report and oblige us thereby. Thank you for choosing us for working on this topic. Yours’ sincerely, Members of the group Ehmed Kushal Imtiaz K. M. Monsurul Aziz

Mohammad Abdullah Zubair Bhuiayn

Table of Contents Title Page no.

Executive Summary

V

1.0 Introduction 01

1.1 Literature Review (Relevant Background) 02

1.2 Objective of the study 04

2.0 Research Methodology 05

3.0 Findings of the study 10

3.1 Discussion on findings and observations 13

4.0 Limitation of the study 15

5.0 Suggestions for further research 15

Appendix

Bibliography

V

Executive Summary This research report is a part of BUS 330 course curriculum. The primary objective of this report is to learn how to conduct a research and write it down in a formal and specific manner. The secondary objective of this study comes from the research topic which comprises of three issues:

1. Identify the factors that are most important to consumers in choosing a super-store

2. Find out consumers’ degree of satisfaction with the service provided by the existing super-stores and

3. To get consumers’ impression about the super-store shopping in relation to the traditional stores

This is an exploratory research and quota sampling has been used. Total number of sample is 70. For data analysis, hypothesis testing (with z-test and chi-square) and regression analysis have been used. Consumer ranked convenience as first priority while choosing super-store shopping in relation to the traditional one. Cleanliness and secured environment were ranked second and third respectively. Chi-square test shows that men and women are equally aware of brand. Z-test analysis shows that there is significant opportunity to go for super-store business. Regression analysis produces a vague result which calls for descriptive research in the future. The analysis of satisfaction level and importance level shows that if an entrepreneur wants to go for super-store business, then emphasize on the mentioned factors (lower raked satisfaction area) along with the most important ones can give the new store a competitive edge. Limitations of this study include non availability of sampling frame, respondents’ unwillingness to cooperate and judgmental differences since larger number of female respondents. The development of super-store business in Bangladesh is in the growth stage and very few research works have been conducted regarding super-store. Thus, there is a huge room for additional study. The utilization of shelf-spaces for a particular product and its generation of profit volume can be very critical to judge but will provide very in-depth findings about profitability. Consumers’ shopping pattern is also a variable of the standard of living and thus, it can be said that the impacts of super-stores can be a matter of study for sociology and other relevant social science fields. The super-stores are popularizing more readymade foods in a convenient way, which can result time saving from cooking and surplus time for recreation, workplace, fulfillment hobbies, etc.

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1.0 Introduction Business world never goes with the word ‘Status Quo’. Business world is dynamic and business is a never ending process. Ease of access to the information, that is, the technological innovation engraves its art in every aspect of our life. This is more relevant for the business world since business closes the gap between the market place and technology. The more a country implants the technology in its business, the more it becomes successful. The governments are now lessen their trade barriers between countries and grab the open market practices. The world tends to become a global village. This changes the form of business all over the world and it becomes inevitable. In our society, its impact also has been observed. The emergence of super-store business in our country gives us the signal to be a part of the global village. Technology makes communication easier. Today ease of getting information is very much affordable as said earlier. Thus, we are exposed to more information. We are becoming more educated. Now, we can justify more wisely. We do know what is good for us in a better way. This know-how changes our lifestyles. As we know differences in consumers’ needs, wants, personalities, attitudes, economic situation, educational background, personal tastes and social status make our shopping pattern different and globalization effect shapes our know-how, the tracking of consumers’ shopping pattern becomes a very complex job. Now marketers have to consider different issues while satisfying their customers’ needs. For example, in recent study, it has seen that besides the factors as mentioned above, the choice of location, buying process, and environment of store also influence shopping decisions. Today, shopping pattern does not include the buying only but includes associated aspects of buying, as walking around, window shopping, location, surroundings, etc.

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1.1 Literature Review (Relevant Background) The traditional store for grocery shopping can be said as the business (whose sales and assets are not large enough to influence its environment; Griffin 2002) that generally offer limited merchandise and provide services mostly by untrained shop workers. On the other hand “bazar” is a location centric concept where many sellers gather their limited variety of merchandise (mostly perishable) for sales and customers required two transact in every point of sale, which means more time consumption for purchasing full-scale grocery. The evolution of super-store in the United States and several economical, social, political, technological and educational changes had complimented to the revolution of super-store in world-wide. At the same time, developing nations also felt the shake of it, as a result of globalization, though in limited scale till now. The mission of this study toward the contributing factors behind change in grocery shopping will bring clarity to the analyses. The change in retail formats came from the concept of open salvages, where public could be let into the stock room and would not create havoc (George Wedd, 1998). He also focused on those traditional shops which are highly specialized: stationers sold stationery: greengrocers sold vegetables- so that a shopping trip had to be carefully planned (George Wedd, 1998). Two terms appeared as ‘unorganized sector’ (traditional stores) and ‘organized sector’ (super-stores) and it has been seen as a shift from the first one to the second one (Simone Tata, 2003). Accordingly to her, ‘organized retail stores are characterized by large professionally managed format - providing goods and services that appeal to customers’. She has focused on liberalization, more spending power (to particular income group), more educated population, and most importantly, exposed to brands and products through television the development of ‘organized sector’. She also cited that division of joint families giving way to nuclear families, and the increasing number of working couples also contributed to the acceptability of super-store shopping. Moreover, convenience shopping is becoming more demandable by the rising number of two income families (Riche, 1987). Social and economical factors like, increase in multiple career households (means more disposable income), and demand for convenience, quality, and time savings (Doris J. Newton, 2003) made positive correlation to super-store sales. He also outlined the concept of “one stop shopping” (large scale of requirement fulfillment; grocery and animal foods, pharmaceutical products, video rentals, and general merchandise as clothing), which is an attributable factor behind the success of super-stores. And this success also be expressed in numerical terms, as

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super-stores accounted for over 70 percent of total food store sales and 72 percent in grocery store sales in 1992 (U.S. Department of Agriculture). Packaging technology and refrigeration, which provided longer shelf life, led to weekly versus daily shopping (Levy and Weitz, 1992). Stock assortment (the combination of different trades and the enrichment of stock assortment within particular trades ensures economies of scale) and self service (customers have access to the goods and may inspect them without the mediation of salespersons and having assembled her requirements from anywhere in the shop, and pays once only, at the exit) defined as major attributes of super-stores (W.G. McClelland, 1962). Hence the main difference from the traditional grocery shops that super-store is self-service, hassle free food shop and requires one point of sale. But it is clear that this expanding retail formats give consumers more shopping alternativeness and also make it more difficult to define market for many of these (Paul little, 2003). That’s why Johnathan Pearce (2003) contended that for many people, shopping is an extension of leisure activity not only just an exchange process of buying food for the table. He also added that super-stores made women easier to leave the home and go into the work. Otherwise shopping would take much more time. According to Messinger and Narasimhan (1997) consumers’ choice of retailers is primarily influenced by assortment, price, and transactional conveniences relating to shopping time and logistics, and utility or disutility from the shopping experience. Their empirical examination suggested that greater prevalence of one stop shopping has been a response to growing demand for time saving convenience. Messinger and Narasimhan also acknowledged that transportation and inventory-holding technologies (refrigeration) are prerequisites to one-stop shopping, which ultimately complemented super-store development. In store promotion facilities of super-stores are utilized with the hope of increasing sales of their merchandise through ‘impulse’ buying (Abratt and Goodey, 1990). The term ‘super-store’ can be said as a store twice as the size of a regular grocery stores that carries a large assortment of routinely purchased food and non-food items and offers services such as dry cleaning, post offices, photo finishing, check cashing, bill paying, lunch counters, car care, and pet care (Kotler and Armstrong 2003). The present format of the stores, which have been focused in this study, is popular as super-stores/super-shop/super-center in Bangladesh but it matches more with the definition of super-store except the attribute of low-cost. Though, in Bangladesh ‘super-store’ erroneously means shopping malls/shopping centers. [Source: Journal of Business Studies, Vol. XXVI, No. 1, June 2005]

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1.2 Objective of the study This report has been prepared for the academic purpose. This is a part of BUS 330 course curriculum. The primary objective of this report is to learn how to conduct a research and write it down in a formal and specific manner. The secondary objective of this study comes from the research topic which comprises of three issues: (1) Identify the factors that are most important to consumers in choosing a super-store (2) Find out consumers’ degree of satisfaction with the service provided by the existing super-stores and (3) To get consumers’ impression about the super-store shopping in relation to the traditional stores

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2.0 Research Methodology This is an exploratory research. This study is not intended to finding any solution of the problem rather it provides an orientation to the readers by gathering information on a topic with which he/she has little experience. It provides greater understanding of a concept rather than providing precise measurement. This research has been conducted based on primary data collection covering the Dhaka city area. Considering the time constrain and ease of collecting information structured questionnaire has been used for collecting the information. It facilitates this study in several ways: (1) Let the researchers quick access to the necessary information (2) Make it easy for the respondent to answer (3) answers are in the form of numerical data (ranking), thus, easy to analyze and interpret (4) let the researchers to avoid the effect of leading question by giving numerous choices (5) the questionnaire has been moderated by the instructor which increases the scope of the covering area. The population of this study covers the individuals who make their shopping in the super-stores. It is a consumer-focused study and the list of super-stores shoppers is still not reality (no sampling frame available). For this reason, quota sampling has been used (non-probability sampling). The control variables (sampling unit) for sampling are- (1) Super-store identification: The super-stores, where large numbers of transactions take place at different point of time in a week, were identified through observations. Identified points of sales were Agora, Almas Super Shop, Prince Bazar Limited, Nandan, and Family World. (2) Day selection: Friday, Monday and Thursday. (3) Time slot: 11 AM to 12 PM and 4 Pm to 7 PM. (4) Respondents’ criteria: Likelihood of more than 18 years old for being capable of independent judgments and at least three items in his/her basket that strengths the possibility of making transactions. Five respondents were interviewed in two hours according to the questionnaire to collect required data. Total sample size is 70. Data have been analyzed by using rank order and statistical tools. Among 70 samples only two errors occur. Both of the errors are response bias. One is deliberate falsification. Here the respondent gave answer in order to appear intelligent. The other respondent seemed to misunderstand the question and unconsciously gave bias answer. No other response errors and administrative errors occur since the researchers were very cautious. A table given below shows the steps that the researchers took to protect biasness.

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Errors Steps taken to avoid

Acquiescence Bias (response bias) Well-designed questionnaire and respondents were given enough choices.

Interviewer Bias (response bias) Let the respondent to fill up the questionnaire by him/her self.

Auspices Bias (response bias) The researchers assure the respondent by saying that this survey will be conducted only for the academic

purpose. Social Desirability Bias (response bias) No such leading question has been

added Data Processing Error (admin. error) The researchers took enough time to

record the information. All the group members record the information individually then the recorded

information has been checked to one another.

Sample Selection Error (admin. error) The researchers spot quota sampling which reduces the likelihood of occurring sample selection error

significantly. Interviewer Error (admin. error) Questionnaire had been filled up by the

respondent and the researchers closely monitored the responses.

Interviewer Cheating (admin. error) Moral and ethical concerns To discuss the reasons for which people go to super-stores instead of traditional grocery stores, satisfaction level of current customers and contribution of super-stores in our shopping behavior, a Focus Group Interview (FGI) has been conducted on 7th September 2007 (Friday). On that day, there were six people on the location and the researchers tried to interview those, who are relatively homogeneous and have similar lifestyles and experiences. The researchers tried to make sure that every one gets a chance to speak and to ask questions to clarify topics that have been introduced in the discussion.

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For analyzing data the researchers use two statistical tools. One is simple regression analysis. For regression analysis, the least-squares method has been used. Using the criterion of least squares, the researchers can determine whether one estimating line is a better fit than another. Statisticians have derived two equations we can use to find the slope and the Y-intercept of the best-fitting regression line. The first formula calculates the slope: ΣXY – n ⎯X⎯Y b = ------------------------ ΣX² - n ⎯X²

Where,

b = slope pf the best-fitting estimating line X = values of the independent variable (% Income change) Y = values of the dependent variable (% change in Expenditure) ⎯X = mean of the values of the independent variable ⎯Y = mean of the values of the dependent variable n = number of data points The second formula calculates the Y-intercept of the line whose slope we calculated using the first equation: a = ⎯Y – b⎯X

Where, a = Y- intercept b = slope from first equation ⎯Y = mean of the values of the dependent variable ⎯X = mean of the values of the independent variable

The following formula has been used to calculate the Standard Error of Estimate: ΣY² - a ΣY – b ΣXY

Se = ---------------------------- n – 2

The standard error of estimate measures the variability of the observed values around the regression line.

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The following formula has been used to determine Sample Coefficient of Determination: a ΣY + b ΣXY – n⎯Y² r² = ---------------------------------- ΣY² - n⎯Y² Sample Coefficient of Determination (r²) is a measure of the proportion of variation in Y, the dependent variable (% change in Expenditure), that is explained by the regression line, that is, by Y’s relationship with the independent variable (% Income change). Coefficient of Correlation (r) is just the square root of the coefficient of determination. Its sign indicates the direction of the relationship between two variables, direct or inverse. r = r²

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The second statistical tool that the researchers use in this study is the hypothesis testing. For hypothesis testing, both the z-test and chi-square test have been used. The following formula has been used for z-test: ⎯x – μ z = ----------------------- Se Where, z = number of standard deviations from the mean of a standard normal probability distribution. ⎯x = sample mean μ = population mean σ Se = sampling error = ------------ √ n σ = population standard deviation n = size of sample For chi-square test, the following formula has been used: (Fo – Fe) ² χ² = ∑ ------------------------ Fe Where, χ²= chi-square statistic Fo= observed (actual) frequency in the nth cell Fe= expected (theoretical) frequency in the nth cell For chi-square test, the researchers need to calculate the degrees of freedom. Degrees of Freedom (DOF) refer to the number of values in a sample we can specify freely once we know something about that sample. Here, DOF = (number of rows – 1) (number of columns - 1) All the hypothesis tests have been conducted with a significance level α = 0.05. The significance level (α) refers to the probability of a Type 1 error. Type 1 error occurs when we reject the null hypothesis when it is true.

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3.0 Findings of the study According to the survey, consumers ranked Convenience (in terms of suitable operating time, adjacent location, one stop household requirements fulfillment, hassle free environment etc) as first priority for choosing super-store shopping, which is mostly absent in the traditional option for the similar products. Consumers ranked Cleanliness as their second criterion for shopping there, which is very much desired to them but not available in the traditional shopping environment. Secured environment (where the chances of loosing product, pick pocket, snatching, unwelcome touching to ladies most probably do not arise) ranked as their third priority among the eight criteria for choosing this kind of shopping. Appropriate weight and Higher quality both simultaneously became fourth priority whereas consumers have chosen product variety as sixth criterion. Consumer put Responsible price (compared to the facilities offered) in seventh position in the ranking for choosing this type of shopping. Consumers ranked Easy to pay (one point of transaction for all shopping, different cards’ acceptability) as eighth criterion for choosing this type of super-stores. All the presented data provided pivotal guide for drawing inferences from different dimensions. Moreover, our observations also explored some emerging realities from the perspective of change. Convenience, cleanliness, and secured environment represent the appeal of super-stores. Price has less important on the buying decision of most respondents, as reasonable price is the seventh choice of them. Thus, the average income level people of the metropolis voluntarily deny their access to these super-stores. We found most of the respondents simultaneously shop from the option not always to make comparison between them but also for their purchase requirement, location advantage, and time availability. Moreover, almost 80% of simultaneous shoppers allocated higher points for the super-stores for overall advantage in shopping. So it is easily understandable that a group of non-price sensitive buyers (where reasonable price and easy to pay the 7th & 8th reason to shop in the super-stores for consumers) most likely the upper middle class & upper class people already moved their face to super-stores from traditional stores. Chi-square test result: Calculated value of χ² (0.426) is less than the critical value of χ² (3.841). Thus, we do not reject the null hypothesis. Z-test result: The calculated value of z falls within the accepted region as seen in the picture. There is no enough reason to reject the null hypothesis.

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Regression Analysis results: The sample coefficient of determination r² turns out 0.2275. So we can conclude that the variation in the income explains 22.75 percent of the variation in the expenditure. Satisfaction level: According to our observation the following factors should be highlighted if someone wants to open up a new super-store since they got the lowest satisfaction rating – (1) Convenient public areas i.e. cleansing room [3.43] (2) Knowledgeable employees [3.43] (3) Handling of return and exchanges [3.46] (4) Convenient parking [3.46] (5) Store’s commitment to its promises to do something [3.57] (6) Store layout for moving around the store [3.6] (7) ‘Right the first time’ service performance [3.6]. Importance level: According to our observation the following factors should be considered first when someone trade off between super-stores: (1) Convenience of location [4.66] (2) Friendly employees [4.46] (3) Large selection of fruits and vegetables [4.40] (4) Offer several brands of a product [4.34] (5) Fresh fruits and vegetables [4.31] (6) Convenience of parking [4.29] (7) Speed of the service in the cash counter [4.06] Findings of the FGI: Eight major reasons for which people prefer super-stores:

Convenience Cleanliness Secured Environment Reasonable Price Higher Quality Appropriate weight Product variety Easy to pay

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Other findings -

Though quality is a very subjective mater that is hard to measure and it varies from person to person. In this FGI result, among six respondents 3 consented that product quality was improved in super-stores compared to the traditional stores, 2 respondents said it was partially improved and only 1 respondent said product quality was not improved in the super-stores than the traditional stores.

From the FGI, it is clearly identified that consumers’ impression about the

price level of most products in these super-stores is slightly higher compared to the prices of traditional shopping.

According to the FGI, 3 said that super-stores were providing improved

packing for their products compared to the traditional shops. 2 said slightly improved packaging and only 1 said similar type of packaging was provided to their consumers compared to the traditional stores.

2 respondents’ impression about the freshness of the super-stores’ perishable goods were slightly higher compared to the traditional stores, 2 respondents said it was higher, 2 said it was similar and no one said it was lower compared to the traditional stores.

Among the 6 respondents, 5 said that they were getting some extra or

additional benefits from this type of super-stores. Mainly, these are price discount, free sample, reliable suggestions, parking facility, expiry date printed, air conditioned environment and basket/trolley to carry their shopping bags and special offer during some festival or sometimes they are arranging fruit festival or fish fair. But 1 respondent said that they were not getting any extra or additional benefits from the super-stores.

According to the FGI, 3 respondents strongly agreed that they were able to

satisfy their all requirements or purposes when they were going to one of the super-stores. 2 respondents partially agreed with this and only 1 strongly disagrees with this statement.

Among the 6 respondents, 5 respondents were shopping simultaneously

from super-stores and traditional shops and only 1 were not doing so.

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3.1 Discussion on findings and observations Consumers’ perception about higher quality of products (including perishable products) is the contribution of neat outlook of products, space allocation for products, and self-selection facility (which is totally impossible in traditional option). Additional benefits and fulfillment of all household requirements by super-stores are incomparable to traditional stores, which ultimately contribution to the positive image of super-stores. The additional benefits are actually the application of modern marketing strategies, which represent the emergence of professional touch at the household shopping sector in Bangladesh. Marketers also blessed with new opportunities as they can use these super-stores for promotional campaign in a secured environment, possibility of close interaction with the consumers, CCTV operation for studying buying behavior in addition to the survey. As most of the respondents consented on higher product quality, improved packaging, higher freshness of perishable goods, availability of additional benefits, fulfillment most of the household requirement: it seems that the super-stores are providing more desirable shopping environment. In case responses on up to date equipment, neatness of salesperson, physical establishment, sales persons’ problem solving ability and knowledge of their job are extremely positive. The researchers’ reflection about such response is that, this type of super-stores is in contemporary state in Bangladesh and still has a new look. People are overwhelmed of it till now and still feeling it as status symbol, very different shopping environment; thus people are not yet in a position to demand more desirable facilities from the super-stores. The emergence of super-store also exemplifies the threat to small business and corporate business revolution in Bangladesh. The business once occupied by small investors like, rice mill, turmeric powder, chili powder, vegetable, fish, meat, etc. are increasingly coming under corporate umbrella. So the sum of total sales of many traditional grocery stores becoming the total sales of one super-store. Here the assurance of higher sales volume in one point of sale means more revenue generation, which leads to less per unit distribution cost for the suppliers/distributors. This situation also increases higher bargaining power of super-stores in demanding supplier credit or large price discounts. The super-stores also have higher credit worthiness than individuals as those are under corporate entity. Thus, the super-stores & their suppliers are becoming complementary to each other. But such situation may result in small farmers’ less bargaining power for fair price. Large price discounts also contributes to achieving economies of scale in operation.

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Self-selection is one such important attribute of super-stores which provides a feeling of independence and self-responsibility. This attribute highly support pull strategy of promotion. Thus it has explored more potential & challenges for the markets, especially in advertising and packaging. So there is more room for innovativeness in conceptualizing, and developing advertising and packaging decisions. Inventory management is a challenge for large assortment of products especially for the chance of pilferage. Developing in information technology (IT) eased inventory management and payment process for large basket shopping, which encourages the development of super-store in Bangladesh. In convenience stores one identical benefit for the neighbors is credit facility, which is replaced by credit card acceptance in super-stores. This situation indicates to a group of consumer who can exploit this advantage. The present withdrawal of rickshaws from major roads also limits many customers’ entry to super-stores, which poses new challenge for the location decision of super-stores. So a particular target market is going to be shared by rising number of super-stores, which will result intense competition. Thus, the researchers suggest more promotional aspects like discount through loyalty cards for retaining consumers to ensure repetitive purchase. Chi-square test: Men and women are equally aware of brand. So super-store owners should consider offering standardized product (branded) in their stores. Z-test: The overall satisfaction level of the super-store customers is 3.90 out of five. Thus it can be concluded that there is significant opportunity for other entrepreneurs to startup the super-store business. They can get substantial advantages by offering facilities that is absent or partially present in the existing business. The super-store business is in the growth stage at present. Regression analysis: This study produces an insignificant relationship between incomes versus expenditure in super-store shopping. The reason is vague to the researchers. Since this research is an exploratory one, so this finding calls for further research. Satisfaction level & importance level: If an entrepreneur wants to go for super-store business, then emphasize on the mentioned factors along with the most important ones can give the new store a competitive edge.

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4.0 Limitation of the study Absence of super-store shopper’s list is the main limitation, for which non-probability sampling has been used. Respondent’s unwillingness to answer the question is another limitation. It is also noted that more females than males responded to the survey. This may be one of the cultural impacts that females are more familiar with the low involvement product or grocery items. Thus, judgmental differences because of gender may have reflected in this study.

5.0 Suggestions for further research The development of super-store business in Bangladesh is in the growth stage and very few research works have been conducted regarding super-store. Thus, there is a huge room for additional study. The utilization of shelf-spaces for a particular product and its generation of profit volume can be very critical to judge but will provide very in-depth findings about profitability. Consumers’ shopping pattern is also a variable of the standard of living and thus, it can be said that the impacts of super-stores can be a matter of study for sociology and other relevant social science fields. The super-stores are popularizing more readymade foods in a convenient way, which can result time saving from cooking and surplus time for recreation, workplace, fulfillment hobbies, etc.

Appendix

Questionnaire 1

Dear Sir/Madam: I am a student of BBA, Eastern University. I am conducting a research on the Super store Industry in Bangladesh. All information collected will be kept confidential and used only for academic purpose. If you are over 18 years old and a regular customer of retail stores, we would greatly appreciate it if you complete this questionnaire. Thank you.

Your gender__

Male Female

What is your age?

18 - 25 26 - 35 36 - 45 46 - 55 55 - and over

Please indicate your approximate monthly household income

Under TK10,000 TK10,001 - TK20,000 TK20,001 – TK30,000 TK30,001 – TK40,000 TK40,001 – TK50,000 TK50,000 and over

Please indicate your approximate monthly expenditure on superstore

TK0 – TK2,000 TK2,001 – TK5,000 TK5,001 – TK10,000 TK10,001 – TK15,000 TK15,001 – TK20,000 TK20,000 and over

Please indicate how many times do you visit superstore a month?

0 to 5 6 to 10 11 to 15 More: ………

Are you a brand loyal?

Yes No

Are you satisfied with the service of super-store currently operating in the market? Give your opinion as per your importance level. Level of importance ___1___ ___2___ ___3___ ___4___ ___5___Stores are well decorated Materials associated with this store's service (such as shopping bags, catalogs, or statements) are visually appealing.

This store has clean, attractive, and convenient public areas (restrooms, fitting rooms). The store layout at this store makes it easy for customers to find what they need. The store layout at this store makes it easy for customers to move around the store. When this store promises to do something by a certain time, it will do so.

This store performs the service right the first time. This store has stock available when the customers want it. This store insists on error-free sales transactions and records. Employees in this store have the knowledge to answer customers' questions. Employees in this store are never too busy to respond to customer's requests.

This store gives customers individual attention. This store willingly handles returns and exchanges. When a customer has a problem, this store shows a sincere interest in solving it. Employees of this store are able to handle customer complaints directly and immediately.

This store offers high quality stock. This store provides plenty of convenient parking for customers. This store has operating hours convenient to all their customers.

This store accepts most major credit cards.

Please rank the following factors (1 to 8) according to their relative importance while choosing a super-store:

1. Convenience _________________

2. Cleanliness _____________

3. Secured environment _____________

4. Reasonable price ________________

5. Higher quality __________________

6. Appropriate weight ____________

7. Product variety ______________

8. Easy to pay ____________

Questionnaire 2

Dear Sir/Madam: I am a student of BBA, Eastern University. I am conducting a research on the Super store Industry in Bangladesh. All information collected will be kept confidential and used only for academic purpose. If you are over 18 years old and a regular customer of retail stores, we would greatly appreciate it if you complete this questionnaire. Thank you.

Your gender__

Male Female

What is your age?

18 - 25 26 - 35 36 - 45 46 - 55 55 - and over

Please indicate your approximate monthly household income

Under TK10,000 TK10,001 - TK20,000 TK20,001 – TK30,000 TK30,001 – TK40,000 TK40,001 – TK50,000 TK50,000 and over

Please indicate your approximate monthly expenditure on superstore

TK0 – TK2,000 TK2,001 – TK5,000 TK5,001 – TK10,000 TK10,001 – TK15,000 TK15,001 – TK20,000 TK20,000 and over

Please indicate how many times do you visit superstore a month?

0 to 5 6 to 10 11 to 15 More: ………

Are you a brand loyal?

Yes No

Provides nutritional information about products

Wide selection of national (local) brands

Customized product offer Offers a variety of health and personal care products (Herbal product)

Large selection of fruits and vegetables Please rank the following factors (1 to 8) according to their relative importance while choosing a super-store:

1. Convenience _________________

2. Cleanliness _____________

3. Secured environment _____________

4. Reasonable price ________________

5. Higher quality __________________

6. Appropriate weight ____________

7. Product variety ______________

8. Easy to pay ____________

We would like to find out what is most important to you in choosing a superstore. Below are a number of descriptors about superstores. Please select the answer that best expresses how important you think the factor is IN SELECTING A SUPERSTORE.

Level of importance ___1___ ___2___ ___3___ ___4___ ___5___Fast checkout (Speed of the service in cash counter)

Exclusive food section

Low priced specials (discount offers)

Close to where you live (location)

Offers coupons in newspaper ads

Courteous, friendly employees

Offers generic products (common food i.e. rice)

Financial support (installment payment)

Offers several brands of a product

Convenience of parking

Fresh fruits and vegetables

Pharmacy facility in a store Wide selection of ethnic food i.e. pork meat for Hindus

Open 24 hours

Wide selection of store’s own brand

Has bakery in the store

Data

Store Selection

as 1

st c

hoic

e

as 2

nd c

hoic

e

as 3

rd c

hoic

e

as 4

th c

hoic

e

as 5

th c

hoic

e

as 6

th c

hoic

e

as 7

th c

hoic

e

as 8

th c

hoic

e

Total Value calculated for rank order

Convenience 23 19 15 5 6 1 1 70 460Cleaness 25 19 11 9 1 1 1 3 70 456Secured E 10 14 15 5 6 11 2 7 70 361Reasonable P 3 5 3 5 5 8 22 19 70 209Higher Quality 3 4 10 14 12 13 8 6 70 291Appropriate weight 2 3 8 16 20 10 5 6 70 291Product variety 1 6 7 12 16 11 13 4 70 279Easy to pay 2 1 5 4 15 18 25 70 169

* Here,Choice Assign Value1st choice 82nd choice 73rd choice 64th choice 55th choice 46th choice 37th choice 28th choice 1For example, if anyone give 'Easy to pay' as 1st choice then we counted he/she gave 8points to 'Easy to pay'

Ranking Table

Question1 Question2 Question3 Question4 Question5 Question6 Question7 Question8 Question9 Question10 Question11 Question12 Question13 Question14 Question15 Question16 Question17 Question18 QueRespondent1 5 4 2 4 4 4 3 4 3 2 4 4 4 5 5 4 1 4Respondent2 4 4 4 5 4 4 3 4 5 3 4 4 3 4 4 4 4 4Respondent3 5 4 3 4 4 3 3 5 4 4 3 2 3 4 4 3 3 4Respondent4 4 4 4 5 3 4 4 2 4 4 5 3 4 3 4 4 4 5Respondent5 5 3 3 5 4 4 3 4 4 4 3 4 4 5 3 5 3 4Respondent6 4 3 4 4 3 4 5 4 4 4 5 4 2 5 3 5 4 4Respondent7 4 3 4 3 4 4 3 4 4 4 3 4 3 3 4 4 4 4Respondent8 5 5 5 4 4 4 3 4 4 3 4 3 5 5 4 4 4 4Respondent9 4 5 4 5 4 5 5 4 5 5 5 4 5 3 4 5 4 5Respondent10 3 3 4 5 5 3 4 2 4 5 4 4 1 2 2 2 2 3Respondent11 4 3 4 4 5 3 3 4 5 3 5 4 5 5 3 4 4 5Respondent12 4 3 3 4 5 3 4 4 2 3 4 4 5 4 4 4 4 5Respondent13 5 4 5 5 5 3 4 5 4 5 5 5 5 5 5 5 4 5Respondent14 3 4 2 4 1 1 3 5 5 3 5 4 5 5 5 4 5 5Respondent15 4 4 2 4 3 4 3 4 4 5 4 5 3 4 5 4 4 4Respondent16 4 4 4 4 3 3 3 4 4 3 3 3 3 3 3 5 4 3Respondent17 4 4 4 3 5 4 4 3 5 2 4 3 4 4 3 4 2 5Respondent18 5 4 4 4 2 4 4 3 4 3 4 4 4 3 4 4 4 4Respondent19 5 4 3 4 4 4 3 5 3 4 3 4 4 3 4 4 3 4Respondent20 5 3 4 4 5 3 3 4 5 4 4 2 3 4 4 5 3 4Respondent21 4 4 3 4 3 4 4 5 5 3 3 4 4 3 4 4 3 4Respondent22 4 3 4 4 3 4 3 4 5 3 4 4 3 4 4 5 4 4Respondent23 4 4 4 3 3 4 4 4 4 2 3 3 3 3 4 4 3 4Respondent24 4 3 4 4 4 3 2 4 5 4 2 2 2 3 3 5 3 4Respondent25 4 3 4 4 3 4 3 3 4 2 4 3 3 4 4 5 3 4Respondent26 4 4 2 3 4 2 3 4 3 4 4 3 1 3 3 4 3 5Respondent27 4 4 3 4 3 4 4 4 4 3 3 3 3 5 4 5 4 4Respondent28 4 3 3 5 3 3 4 4 4 3 4 5 4 5 3 4 2 4Respondent29 5 4 4 3 3 4 4 4 4 2 4 2 3 5 4 5 3 4Respondent30 5 4 3 5 5 5 5 5 5 4 4 4 3 2 4 3 5 5Respondent31 5 5 4 5 5 4 5 5 5 4 4 4 1 4 4 5 3 5Respondent32 3 4 2 4 2 1 3 5 5 3 5 4 5 4 4 5 5 4Respondent33 5 4 4 4 2 4 4 5 4 2 4 4 3 4 4 4 3 5Respondent34 4 4 3 4 3 4 3 4 4 5 4 5 3 4 5 4 4 4Respondent35 3 4 1 4 3 4 5 2 3 3 5 4 5 5 4 3 3 5

Total 148 132 120 144 126 125 126 140 146 120 138 128 121 137 135 148 121 150

Level of satisfactionOut of FIVE

4.23 3.77 3.43 4.11 3.60 3.57 3.60 4.00 4.17 3.43 3.94 3.66 3.46 3.91 3.86 4.23 3.46 4.29

Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary SuFive = 12Four = 19Three = 4

Five = 3Four = 21

Three = 11

Five = 2Four = 18Three = 9Two = 5One = 1

Five = 9Four = 21Three = 5

Five = 8Four = 10

Three = 13 Two = 3One = 1

Five = 2Four = 21Three =9Two =1One = 2

Five = 5Four = 12

Three = 17Two =1

Five = 9Four = 20Three = 3Two = 3


Five = 5Four = 11

Three = 13Two = 6



Five = 8Four = 8

Three = 14Two = 2One = 3


FivFoTh

Five = 11Four = 12

Three = 10Two = 2



Five = 3Four = 15


Satisfaction trend of consumers

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Question no

Satis

fact

ion

leve

l

Question1 Question2 Question3 Question4 Question5 Question6 Question7 Question8 Question9 Question10 Question11 Question12 Question13 Question14 Question15 Question16 Question17 Question18 Question19Respondent36 4 3 4 5 3 4 2 1 4 2 4 1 2 4 4 3 4 3 5Respondent37 4 4 4 4 4 4 4 1 5 5 5 5 3 5 3 1 5 3 4Respondent38 4 3 5 4 4 4 5 1 4 5 5 3 2 5 4 3 5 3 4Respondent39 4 3 4 4 2 4 4 3 4 4 4 4 3 4 3 4 4 3 3Respondent40 5 3 2 5 2 5 5 5 3 5 2 4 2 5 5 4 5 4 3Respondent41 3 4 3 5 3 4 3 1 3 5 4 3 2 4 1 3 1 3 2Respondent42 4 4 1 4 1 4 3 1 4 4 2 1 1 4 1 3 1 2 1Respondent43 5 3 4 5 3 4 2 5 4 4 3 3 2 5 4 2 5 3 4Respondent44 4 3 5 5 3 4 4 2 5 4 4 3 2 3 3 3 4 5 3Respondent45 5 4 2 3 4 5 3 4 4 4 4 4 3 4 4 4 3 4 4Respondent46 3 3 4 4 2 5 5 2 5 4 5 3 3 4 5 3 4 5 3Respondent47 4 1 4 5 1 4 1 1 4 4 4 3 5 2 3 4 2 4 1Respondent48 5 3 3 5 2 3 3 4 3 4 2 4 5 5 4 2 3 4 4Respondent49 1 3 3 5 1 4 3 1 5 1 4 1 1 5 3 5 5 4 2Respondent50 5 5 3 5 4 5 4 5 5 4 5 4 4 2 4 4 4 3 4Respondent51 5 3 3 5 1 5 5 1 5 5 5 3 5 3 3 3 3 5 5Respondent52 5 3 3 5 2 5 3 5 4 4 3 4 2 5 4 4 5 4 2Respondent53 2 3 3 5 3 5 5 3 4 4 5 5 3 3 4 5 2 4 4Respondent54 5 1 5 5 4 5 5 4 5 5 5 5 1 5 3 4 5 3 5Respondent55 5 3 3 5 3 4 4 3 3 5 5 3 1 5 5 3 4 3 5Respondent56 3 4 2 5 2 4 5 2 4 5 5 4 2 3 4 4 3 3 3Respondent57 4 5 2 3 2 4 5 4 5 5 5 3 4 3 5 4 3 4 3Respondent58 4 5 3 4 3 5 5 4 5 4 5 3 5 4 5 3 4 5 3Respondent59 4 3 5 5 2 5 5 1 5 5 5 4 2 3 4 3 3 4 3Respondent60 3 4 4 5 3 4 5 2 4 4 5 5 3 3 3 3 4 4 4Respondent61 4 4 3 4 3 5 5 4 5 5 5 3 1 1 3 3 4 5 3Respondent62 4 2 4 5 1 4 4 1 5 5 5 4 1 3 3 3 4 4 3Respondent63 5 4 3 5 3 4 5 2 5 5 5 3 3 3 3 3 5 5 5Respondent64 4 3 5 5 3 5 5 4 4 3 5 3 2 2 3 3 4 4 5Respondent65 5 5 3 5 4 5 4 2 5 5 5 3 1 2 3 4 4 4 4Respondent66 5 1 5 5 4 5 4 3 5 5 5 2 1 4 3 4 5 3 5Respondent67 5 3 1 5 1 5 4 4 4 5 3 4 1 5 3 4 4 5 3Respondent68 4 5 5 5 2 5 4 3 3 4 3 3 4 4 2 1 3 2 2Respondent69 3 3 4 4 2 5 4 2 5 4 5 3 2 3 3 2 4 4 4Respondent70 3 3 5 5 1 4 4 4 5 4 5 4 2 3 3 3 3 4 4

Total 142 116 122 163 88 156 141 95 152 150 151 117 86 128 120 114 131 132 122Level of

importanceOut of FIVE

4.06 3.31 3.49 4.66 2.51 4.46 4.03 2.71 4.34 4.29 4.31 3.34 2.46 3.66 3.43 3.26 3.74 3.77 3.49

Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary SummaryFive = 13Four = 14Three = 6Two = 1One = 1

Five = 5Four = 8


Five = 8Four = 9


Five = 25Four = 8

Three = 2Four = 7




Five = 4Four = 9

Three = 5Two = 7

One = 10



Five = 21Four = 7

Three = 4Two = 3

Five = 4Four = 11


Five = 4Four = 3


Five = 10Four = 9


Five = 5Four = 10


Five = 2Four = 12



Five = 7Four = 15

Three = 11Two = 2

Five = 7Four = 11


Trends of consumers' importance level

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21Question no

Leve

l of i

mpo

rtan

ce

Gender Age Income Expenditure No.of visit Brand loyalRespondent1 F D C D B NRespondent2 F B C D C YRespondent3 M D C B A NRespondent4 M D D D B YRespondent5 F B C C B NRespondent6 F D D E C YRespondent7 M A B B A YRespondent8 F C D B C YRespondent9 F C C B A NRespondent10 M B C B A NRespondent11 F B E B B NRespondent12 F B D B B YRespondent13 F B F F B NRespondent14 F C D D B YRespondent15 F C E D A YRespondent16 F C D C C NRespondent17 M D D D B YRespondent18 M B C B A YRespondent19 F B C C B YRespondent20 F C C C B NRespondent21 F B F F C NRespondent22 F A B B B YRespondent23 M B C B A YRespondent24 M D F F B NRespondent25 M D F E B YRespondent26 F D E E B YRespondent27 F D E D B YRespondent28 M B C B A YRespondent29 F C F F B YRespondent30 F C F E A YRespondent31 F C F F B YRespondent32 F C E D B YRespondent33 F C F F B YRespondent34 F C E D B YRespondent35 F D E B A YRespondent36 M B C A A NRespondent37 F B F C C YRespondent38 F B F D C YRespondent39 F B D E B YRespondent40 M E F F D YRespondent41 M B F C A NRespondent42 M C D B A YRespondent43 F B F F C YRespondent44 M E D B A NRespondent45 F B E E D YRespondent46 M D C B A YRespondent47 F D C C B YRespondent48 F C D C D YRespondent49 M E F F D NRespondent50 F B D C B NRespondent51 M B B E A YRespondent52 F B E F C YRespondent53 F B C C B YRespondent54 M C D C C YRespondent55 F C D E A NRespondent56 F B B B B NRespondent57 F C C C B NRespondent58 M B C C B YRespondent59 F E C C B NRespondent60 F B C C B YRespondent61 M B B B A YRespondent62 F D C C C YRespondent63 F B E E D YRespondent64 F C B B B NRespondent65 F B E C B NRespondent66 M C D B B NRespondent67 F B C C A NRespondent68 M A A A B YRespondent69 M D C B A YRespondent70 F B B B B N

* Here, * Here, * Here, * Here, * Here, * Here,M = Male A = 18 - 25years A = Under TK10,000 A = TK0 – TK2,000 A = 0 to 5 times Y = YesF = Female B = 26 - 35years B = TK10,001 - TK20,000 B = TK2,001 – TK5,000 B = 6 to 10times N = No

C = 36 - 45years C = TK20,001 – TK30,000 C = TK5,001 – TK10,000 C = 11 to 15timesD = 46 - 55years D = TK30,001 – TK40,000 D = TK10,001 – TK15,000 D = More: ………E = 55 - and over E = TK40,001 – TK50,000 E = TK15,001 – TK20,000

F = TK50,000 and over F = TK20,000 and over

Age

A(18-25)B(26-35)C(36-45)D(46-55)E(55+)

Income

A(10-)B(11-20)C(21-30)D(31-40)E(41-50)(50+)

Expenditure

A(0-2000)B(2001-5000)C(5001-10000)D(10001-150000)E(15001-20000)F(20000+)

Data Analysis

Chi-Square Testing

Contingency Table Men Women

Awareness of Brand

Observed Value

ExpectedValue

ObservedValue

Expected Value TOTAL

Aware 17 15.77 29 30.23 46

Unaware 7 8.23 17 15.77 24 70

Expected (Theoretical) Value Computation Awareness of

Brand Men (N1) Women (N2) Total

Aware (N1) 17 29 46

Unaware (N2) 7 17 24 24 46 70

Expected value Cell N11 (46) * (24) / 70 = 15.77




χ² Computation Fo Fe Fo - Fe (Fo - Fe)² (Fo - Fe)² / Fe

17 15.77 1.23 1.513 0.096

29 30.23 -1.23 1.513 0.05

7 8.23 -1.23 1.513 0.184

17 15.77 1.23 1.513 0.096

χ² = 0.426 DOF = (2 - 1) * (2 - 1) = 1

Critical value of χ² with 1 DOF = 3.841 (considering α = 0.05)

Ho: Brand Awareness is independent of respondent’s sex. Result: Calculated value of χ² (0.426) is less than the critical value of χ² (3.841). Thus, we do not reject the null hypothesis. Conclusion: Men and women are equally aware of Brand. Acceptance region

Accept the null hypothesis if the sample value is in this region

0.05 of area 3.841 0.426

Chi-square distribution with

1 degree of freedom

Z-test Computation n = 35 ⎯x = 3.85 s = 0.236 Se = 0.04

Confidence level = 95 % µ = 3.90 s² = 0.056

3.85 - 3.9 z critical value = 1.96 z =

0.04 = -1.25 Ho: µ = 3.9 H1: µ < 3.9

Detailed Calculation I II III IV x ⎯x x - ⎯x (x - ⎯x)²

4.23 3.85 0.38 0.1444 3.77 3.85 -0.08 0.0064 3.43 3.85 -0.42 0.1764 4.11 3.85 0.26 0.0676 3.6 3.85 -0.25 0.0625

3.57 3.85 -0.28 0.0784 1.8921 3.6 3.85 -0.25 0.0625

s² = 34

= 0.056

4 3.85 0.15 0.0225 4.17 3.85 0.32 0.1024 √0.056 3.43 3.85 -0.42 0.1764

Se = √35

= 0.04

3.94 3.85 0.09 0.0081 3.66 3.85 -0.19 0.0361 3.46 3.85 -0.39 0.1521 3.91 3.85 0.06 0.0036 3.86 3.85 0.01 0.0001 4.23 3.85 0.38 0.1444 3.46 3.85 -0.39 0.1521 4.29 3.85 0.44 0.1936 4.4 3.85 0.55 0.3025

⎯x = 73.12 / 19 = 3.85 ∑(x - ⎯x)² = 1.8921

0.475 0.025 0.475

Critical z value = -1.96 0 -1.25 = calculated value of z Ho: Overall satisfaction level, µ = 3.9 H1: Overall satisfaction level, µ < 3.9 Result: The calculated value of z falls within the accepted region as seen in the picture. Conclusion: There is no enough reason to reject the null hypothesis.

Regression Analysis X Y X² Y² XY 1 2 1 4 2 7 21 49 441 147

22 18 484 324 396 15 10 225 100 150 11 9 121 81 99 14 10 196 100 140

⎯X = 11.67 ⎯Y = 11.67 ∑X² = 1076 ∑Y² = 1050 ∑XY = 934 b = 0.452 a = 6.388 r = 0.477 Se = 6.721

Regression Chart

R2 = 0.2275

0

5

10

15

20

25

0 5 10 15 20 25

Income

Expe

nditu

re

Bibliography

Book:

1. Business Research Methods by William G. Zikmund, 8/e 2. Statistics for Management by Rochard I. Levin and David S. Rubin, 7/e

Articles:

1. Journal of Business Studies, Vol. XXVI, No. 1, June 2005

Documents

Final report(on super store)