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Comparative analysis of Retail chains based on SERVQUAL Model

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Information about Comparative analysis of Retail chains based on SERVQUAL Model

Published on September 24, 2008

Author: suresh.singh

Source: slideshare.net

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Comparative analysis of Retail chains based on SERVQUAL Model Cases of Apparel & Grocery Stores

Comparative analysis of Retail chains based on SERVQUAL Model: Cases of Apparel & Grocery Stores (Pantaloon & Globus/Reliance Fresh &Big Bazaar) Prepared For: Mr. Shashank Mehra (Faculty of Marketing Research) Center for Retail Management FDDI Presented By: Roll No. Name 14 Gagandeep 42 Sanjay Kumar 45 Shivam 52 Suresh Kr. Singh 58 Vivek Kumar

Objectives To identify various variables to measure Service Quality parameters in Indian Retailing context. To compare the Grocery Retail chains on the Service Quality Variable identified. To compare the Apparel Retail chains on the Service Quality Variable identified.

Objectives

To identify various variables to measure Service Quality parameters in Indian Retailing context.

To compare the Grocery Retail chains on the Service Quality Variable identified.

To compare the Apparel Retail chains on the Service Quality Variable identified.

Major Findings Reliance Fresh is performing better than Big Bazaar in 7 variables. These variables are –“Associated Material Quality, Store Layout/Easy to Find, Error Free Sale, Safe in Transaction, Individual Attention, and Courteous with Customer and Willingness to respond”. But, there is one variable on which Big-Bazaar is ahead of Reliance Fresh i.e. “Parking Convenience”. In the case of Apparel Store sample is taken from Pantaloon and Globus, after applying test for the equality of mean for each variable we have found that on the 5% Significance Level both store don’t have any significant difference in any variable.

Reliance Fresh is performing better than Big Bazaar in 7 variables. These variables are –“Associated Material Quality, Store Layout/Easy to Find, Error Free Sale, Safe in Transaction, Individual Attention, and Courteous with Customer and Willingness to respond”. But, there is one variable on which Big-Bazaar is ahead of Reliance Fresh i.e. “Parking Convenience”.

In the case of Apparel Store sample is taken from Pantaloon and Globus, after applying test for the equality of mean for each variable we have found that on the 5% Significance Level both store don’t have any significant difference in any variable.

Introduction to servqual

“ SERVQUAL method is a technique that can be used for performing a gap analysis of an organization’s service quality performance against customer service quality needs”. (Parasuraman et al. 1988)”

“ SERVQUAL method is a technique that can be used for performing a gap analysis of an organization’s service quality performance against customer service quality needs”. (Parasuraman et al. 1988)”

It is originating from the SERVPERF (Cronin, Taylor; 1992) the RSQS is a performance based measure of service quality but specific to the retail context . RSQS or Retail Service Quality Scale (Dabholkar, Thorpe & Rent; 1996) was a modified model of ServQual as it contains 17 variables from ServQual and 11 variables are added later by Dabholkar to make it suitable for measuring retail service quality. The RSQS Model

It is originating from the SERVPERF (Cronin, Taylor; 1992) the RSQS is a performance based measure of service quality but specific to the retail context .

RSQS or Retail Service Quality Scale (Dabholkar, Thorpe & Rent; 1996) was a modified model of ServQual as it contains 17 variables from ServQual and 11 variables are added later by Dabholkar to make it suitable for measuring retail service quality.

 

Service Quality Model: Service Quality Dimension 1 Physical Facilities Dimension 2 Reliability Dimension 3 Personal Interaction Sub Dimension 1 Appearance Sub Dimension 2 Convenience Sub Dimension 3 Promises Sub Dimension 4 Doing-it-Right Sub Dimension 5 Building Confidence Sub Dimension 6 Responsiveness Dimension 4 Problem Solving Dimension 5 Policy Equipment & Fixture Visual Appeal of Building Associated Material Quality Convenient Public Areas Store Layout/Easy to find Store Layout/Easy to move Keep promise Deliver services Right service Merchandise availability Error free sale Knowledgeable employee Instilling confidence Safe in transaction Prompt service Respond quickly Individual attention Courteous to customer Willing &enthusiastic to respond Less waiting in queue Show interest in solving problem Handle complain directly High quality merchandise Convenient parking Convenient operating hours Accept all credit cards Willingly handle return Provide home delivery List of merchandise available

Research design

Population Any person who had used services of that store. Survey Questionnaire Based on Past Researches and the Focus Group Interview taken by us. Data Collection Research Location: Delhi Noida Ghaziabad Questionnaire based on 29 variables as described in the above model will be get filled with this sample. Sample Size: 215

Response Rate response percentage is 72%, 66.7%, 69% and 78.6% for Big Bazaar, Reliance Fresh, Globus and Pantaloon respectively.

response percentage is 72%, 66.7%, 69% and 78.6% for Big Bazaar, Reliance Fresh, Globus and Pantaloon respectively.

Statistical Technique Used In the case of means for two independent samples, the hypothesis takes the following form. H 0 : µ1=µ2 H 1 : µ1≠µ2 After that we test the equality of mean using independent sample t-test at significance level 5% t = (X 1 – X 2 ) + (µ 1 – µ 2 ) S x1-x2 S 2 = (n 1 – 1)S 1 2 + (n 2 – 2)S 2 2 n 1 + n 2 - 2 √ S 2 ( S x1-x2 = 1 1 ---- + ----- n1 n2 )

In the case of means for two independent samples, the hypothesis takes the following form.

H 0 : µ1=µ2

H 1 : µ1≠µ2

After that we test the equality of mean using independent sample t-test at significance level 5%

Analysis of Result

Cases of Grocery Stores

For independent sample t-test, in Lavene’s test if significance value > 0.05 then variance are assumed to be equal and the corresponding value for t-test has to be considered. Then on seeing significance level of t-test if it is > 0.05 then Ho (null hypothesis) for the equality of mean is accepted and if it is < 0.05 then Ho will be rejected which indicate significant difference between Mean value of variable. Testing

For independent sample t-test, in Lavene’s test if significance value > 0.05 then variance are assumed to be equal and the corresponding value for t-test has to be considered.

Then on seeing significance level of t-test if it is > 0.05 then Ho (null hypothesis) for the equality of mean is accepted and if it is < 0.05 then Ho will be rejected which indicate significant difference between Mean value of variable.

Cases of Grocery Stores -.10409 -1.31768 .30588 -.71088 .022 101 -2.324 .465 .538 Equal variances assumed AssociatedMaterialQuality -.05489 -1.17770 .28304 -.61630 .032 102 -2.177 .878 .024 Equal variances assumed StoreLayoutEasytoFind -.04596 -1.23404 .29949 -.64000 .035 102 -2.137 .109 2.613 Equal variances assumed ErrorFreeSale -.03202 -1.11761 .27343 -.57481 .038 95.245 -2.102 Equal variances not assumed SafeInTransaction Upper Lower 95% Confidence Interval of the Difference Std. Error Difference Mean Difference Sig. (2-tailed) df t Sig. F t-test for Equality of Means Levene's Test for Equality of Variances .013 6.377

Cases of Grocery Stores Cont… 1.40888 .09225 .33186 .75057 .026 101 2.262 .775 .082 Equal variances assumed CovenientParking -.19859 -1.19295 .25063 -.69577 .007 101 -2.776 .055 3.779 Equal variances assumed WillingToRespond -.29094 -1.44091 .28988 -.86593 .004 102 -2.987 .368 .817 Equal variances assumed CourteousWithCustomer Upper Lower 95% Confidence Interval of the Difference Std. Error Difference Mean Difference Sig. (2-tailed) df t Sig. F t-test for Equality of Means Levene's Test for Equality of Variances -.05956 -1.26340 .30346 -.66148 .032 102 -2.180 .744 .108 Equal variances assumed IndividualAttention

Case of Apparel Stores

Inferences

Conclusion In the case of Grocery store (Reliance Fresh and Big Bazaar), Reliance Fresh has score better in- Dimension 1- Physical Appearance Sub Dimension 1- Appearance Sub Dimension 2- Convenience Dimension 2- Reliability Sub Dimension 4- Doing it Right Dimension 3- Personal Interaction Sub Dimension 5- Building Confidence Sub Dimension 6- Responsiveness But, Big Bazaar has better service quality level in the case of Dimension 5- Policy On the rest of the dimensions and sub-dimensions, i.e. Dimension 4- Problem Solving and Sub-Dimension 3- Promises, both the store don’t have any significant difference.

In the case of Grocery store (Reliance Fresh and Big Bazaar), Reliance Fresh has score better in-

Dimension 1- Physical Appearance

Sub Dimension 1- Appearance

Sub Dimension 2- Convenience

Dimension 2- Reliability

Sub Dimension 4- Doing it Right

Dimension 3- Personal Interaction

Sub Dimension 5- Building Confidence

Sub Dimension 6- Responsiveness

But, Big Bazaar has better service quality level in the case of

Dimension 5- Policy

On the rest of the dimensions and sub-dimensions, i.e. Dimension 4- Problem Solving and Sub-Dimension 3- Promises, both the store don’t have any significant difference.

In the case of Apparel store (Pantaloon and Globus) both the store have performed equally well on the Service Quality Scale (Retail Service Quality Scale) i.e. they don’t have any significant difference in each Dimension or Sub-Dimension. Conclusion Cont…

In the case of Apparel store (Pantaloon and Globus) both the store have performed equally well on the Service Quality Scale (Retail Service Quality Scale) i.e. they don’t have any significant difference in each Dimension or Sub-Dimension.

Recommendations In the case of Grocery store (Reliance Fresh and Big Bazaar) Reliance fresh has chance to improve on its parking facility On the other hand Big Bazaar has to improve on three dimension as mention early in the presentation. They can do this by By giving training to their staff people. By upgrading their associated material By instilling confidence in customer to show that transaction with them are safe.

In the case of Grocery store (Reliance Fresh and Big Bazaar)

Reliance fresh has chance to improve on its parking facility

On the other hand Big Bazaar has to improve on three dimension as mention early in the presentation. They can do this by

By giving training to their staff people.

By upgrading their associated material

By instilling confidence in customer to show that transaction with them are safe.

Limitation Converting Service Quality scale with respect to Indian Scenario. Testing Reliability and Validity for all the variables included in the study. Sample doesn’t include sample from Faridabad and Gurgaon due to time constraint.

Converting Service Quality scale with respect to Indian Scenario.

Testing Reliability and Validity for all the variables included in the study.

Sample doesn’t include sample from Faridabad and Gurgaon due to time constraint.

References Dr. Arash Shahin, Department of Management, University of Isfahan, Iran. “SERVQUAL and Model of Service Quality Gaps: A Framework for Determining and Prioritizing Critical Factors in Delivering Quality Services”. Michael K. Brady & J. Joseph Cronin Jr. “Some New Thoughts on Conceptualizing Perceived Service Quality: A Hierarchical Approach”. Nor Khalidah Abu, Faculty of Business Administration, Universiti Tun Abdul Razak Kelana Jaya, Selangor, Malaysia. “Service Quality Dimensions: A Study on Various Sizes of Grocery Retailers –A conceptual Paper”. Jasmine Yeap Ai Leen, T. Ramayah, Jasman J. Ma’ruf, Universiti Sains Malaysia “Validating a Retail Service Quality Instrument in Apparel Specialty Stores”. TSMG_TATA Review (2006). KPMG Report (2005). Mckinsey Report – “Bird of Gold” (2007). J. Brent McKenzie, B.A. (McMaster University) M.B.A. (Dalhousie University) – “Retail Service Quality in a Transition Economy: The Case of Estonia”. Subhashini Kaul, Indian Institute of Management, Ahemadabad, India –“Measuring

Dr. Arash Shahin, Department of Management, University of Isfahan, Iran. “SERVQUAL and Model of Service Quality Gaps: A Framework for Determining and Prioritizing Critical Factors in Delivering Quality Services”.

Michael K. Brady & J. Joseph Cronin Jr. “Some New Thoughts on Conceptualizing Perceived Service Quality: A Hierarchical Approach”.

Nor Khalidah Abu, Faculty of Business Administration, Universiti Tun Abdul Razak Kelana Jaya, Selangor, Malaysia. “Service Quality Dimensions: A Study on Various Sizes of Grocery Retailers –A conceptual Paper”.

Jasmine Yeap Ai Leen, T. Ramayah, Jasman J. Ma’ruf, Universiti Sains Malaysia “Validating a Retail Service Quality Instrument in Apparel Specialty Stores”.

TSMG_TATA Review (2006).

KPMG Report (2005).

Mckinsey Report – “Bird of Gold” (2007).

J. Brent McKenzie, B.A. (McMaster University) M.B.A. (Dalhousie University) – “Retail Service Quality in a Transition Economy: The Case of Estonia”.

Subhashini Kaul, Indian Institute of Management, Ahemadabad, India –“Measuring

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