A REPORT ON A STUDY OF CHANGE IN CUSTOMER PERCEPTION ON BAZAAR WAR - THE BIGBASKET VERSUS NILGIRIS

Research Paper

Economics

E-ISSN No : 2454-9916 | Volume : 2 | Issue : 3 | March 2016

A REPORT ON A STUDY OF CHANGE IN CUSTOMER PERCEPTION ON BAZAAR WAR - THE BIGBASKET VERSUS NILGIRIS 1

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Dhivya Ravi | Hariprasath. M | Karthik. V | Swathi. G | Umesh Kiran. S 1

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ITM Business School, Chennai.

ABSTRACT E-Commerce is process of doing business through computer networks. A person sitting on his chair in front of a computer can access all the facilities of the Internet to buy or sell the products. Unlike traditional commerce that is carried out physically with effort of a person to go & get products, ecommerce has made it easier for human to reduce physical work and to save time. In this paper the customer perceptive towards Grocery Shopping in the form of E commerce and Traditional commerce. The main advantage of e-commerce over traditional commerce is the user can browse online shops, compare prices and order merchandise sitting at home on their PC. KEYWORDS: Reliability, Customer Service, Brand, Chi-Square Test, Market Research.

INTRODUCTION SUPER MARKET A supermarket, a large form of the traditional grocery store, is a self-service shop offering a wide variety of food and household products, organized into aisles. It is larger and has a wider selection than a traditional grocery store, but is smaller and more limited in the range of merchandise than a hypermarket or big-box market.

The supermarket typically comprises meat, fresh produce, and dairy, and baked goods aisles, along with shelf space reserved for canned and packaged goods as well as for various non-food items such as kitchenware, household cleaners, pharmacy products and pet supplies. Some supermarkets also sell a variety of other household products that are consumed regularly, such as condoms (where permitted), medicine, and clothes, and some stores sell a much wider range of nonfood products: DVDs, sporting equipment, board games, and seasonal items (e.g., Christmas wrapping paper in December).

NILGIRI'S Nilgiri's is a supermarket chain in South India. It is also one of the oldest supermarket chains in India with origins dating back to 1905 and hence its products are sold under the brand name of "Nilgiris 1905". Also, unlike almost all other supermarkets and grocery shops in India, Nilgiris sells its own products among other brands. Nilgiri's is such an integral part of Chennai's panorama that it is difficult to imagine a time when this landmark was not there on Dr. Radhakrishnan Salai.

People drive down all the way from Neelankarai, Velachery or Anna Nagar to shop at Nilgiris. For most of us, it has become an incurable habit. The increasing expatriate population is just as hopelessly sold on the idea. I spent an afternoon at the Departmental Store, talking with the management and the staff, trying to understand the complex management strategies they might be using. It took them little effort to explain the secret of their success. Everything goes back to the family and its values. ``We have been taught never to forget our background, our culture and our behavior. Our conscience does not accept profit in business by shortchanging people or by selling inferior products." It becomes necessary to trace the family back three generations to Muthusamy Mudaliar, who was a ``runner'' during the British times. He used to take letters and Cheques from down Mettupalayam to the British living in Connoor and Ooty. Other than cool clime and exotic fauna, the hills offered little else.

The overview on the brand, the Market, and the consumer is well explained in the model which is given below..

BIG BASKET Bigbasket.com (Innovative Retail Concepts Private Limited) is India's largest online food and grocery store. With over 14,000 products and over a 1000 brands in our catalogue you will find everything you are looking for. Right from fresh Fruits and Vegetables, Rice and Dals, Spices and Seasonings to Packaged products, Beverages, Personal care products, Meats – we have it all. Choose from a wide range of options in every category, exclusively handpicked to help you find the best quality available at the lowest prices. Select a time slot for delivery and your order will be delivered right to your doorstep, anywhere in Bangalore, Mysore, Mumbai, Hyderabad, Vijayawada-Guntur, Pune, Chennai, Madurai, Coimbatore & Delhi. You can pay online using your debit / credit card or by cash / Sodexho on delivery.

THEORETICAL FRAMEWORK In this study we have adopted ACSI Model concentrating mainly on the Super Market Industry BigBasket and Nilgiri's

CopyrightŠ 2015, IERJ. This open-access article is published under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License which permits Share (copy and redistribute the material in any medium or format) and Adapt (remix, transform, and build upon the material) under the Attribution-NonCommercial terms.

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Research Paper

E-ISSN No : 2454-9916 | Volume : 2 | Issue : 3 | March 2016

LITERATURE REVIEW REFERENCE

SUMMARY OF RESULTS

IMPORTANT FINDINGS

The young customers are high satisfied. The results also showed that satisfied customers are more frequent in shopping at 41 respective super markets. And customers were not brand conscious. Most of them did not pay attention to name of the store for their choice of a supermarket.

The retailers are spread all over the country; a large amount of financial resources is required.

The target population was the customers of super markets so the findings could not be generalized to the customers of SMEs.

The aim of this research is to find out Customer satisfaction is the basis for any Retail sector how the Retail sector can improve the and Service quality creates customer satisfaction, and quality of customer service, the the customers define quality. offered selections and general atmosphere at the stores.

Based on the theory about customer satisfaction, service quality and customer satisfaction studies it is clear that with basic service it is not enough to compete with the competitors.

AIM OF STUDY

Phuc Hong Lu & The aim of the paper was to identify Ian Grace.B. and describe factors of customer satisfaction for supermarket & ComparaLukoma (2011) tively analyze customer satisfaction for those retailers.

Katriina Mattsson(2009)

U.Dineshkumar & The study deals with the customer satP.Vikkraman isfaction towards organized outlets (2012) which is very essential for retailing.

Also, it deals with various problems in the present retail store products and promotional schemes.

Satisfaction of consumers in retail service is an important criterion for a marketer to understand for further strategic decision. This study also reveals that the customers prefer organized retailing over unorganized retailing, due to which the organized retailing become a threat to the unorganized outlets.

In this study it is found that organized retail outlets provide better quality of service, product range as compared to the unorganized retail outlets. Most of the customers are satisfied with the quality of service provided by the organized retail outlets.

Sam Walton (2007)

1. To examine the expectations of the It is the outcome of a cognitive and effective evaluation, customers from the departmental where some standard expectation is compared to the stores and find out how far they are sat- actually perceived performance. isfied.

2. To enquire into the various dimensions of service quality rendered by these departmental stores.

Veronica Aluoch Owuor & Dr. Esther Waiganjo (2014)

Customer Satisfaction: Supply prod- Customer satisfaction is an important strategy in main- customer satisfaction is not only affected by cusuct, Value for money, Quality taining customers, particularly those in retail chain. Cus- tomer services but also by price and convenience, tomer satisfaction being an experience-based assess- the study concludes that price image has implicaimprovement, Service quality. ment made by customers and how far their expectations tions for store patronage and that products offered about the overall functionality of the services obtained, are very important since they have the ability to the study concludes that convenience stores offer a wide influence or change the purchasing behavior of variety of products, but a limited number of choices consumers. within a particular product range.

Rajagopal (2011) Selling process, customer needs, Performance of salespeople is determined by the mea- Firms expect salespeople to be proactive in prosknowledge sharing. sures of clear visibility of customer needs cost Effec- pecting customers and at the same time adhere to tiveness adopted during the selling process. management control practices That often stall the Sales force consumes a hefty share of the budget of Com- sales process. pany.

Mohammed Al- Customer Satisfaction, Grocery Ali, Nor Erne Stores, Store Attributes, PLS-SEM Nazira Bazin, Siti Maryam Shamsuddin (2015)

The study has Confirmed that the suggested retail stores' attributes Influence customer's selection criteria, these results Are in line with those of [6, 7] who argued that the perception of store's attributes positively affect Customers' satisfaction. However, our results are the first to specifically

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To assess peer influence, customer service quality, product quality & promotion on customer base.

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To understand the Preference in choice of BigBasket Vs. Nilgiri's.

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To study the Customer perception and attitude towards Big Basket Vs. Nilgiri's.

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To make a comparative analysis based on the consumer behavior between BigBasket Vs. Nilgiri's.

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To spell out strategies to increase brand awareness for both Nilgiri's and BigBasket.

RESEARCH DESIGN Type of Research: Exploratory Research.

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Source of Data: Primary Data & Secondary Data.

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Primary Data: Questionnaire.

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Secondary Data: Websites, Journals, Magazines.

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Data collection method: Survey Method.

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Survey Instrument: Questionnaire, Online Questionnaire.

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Method of Communication: Personal Interview.

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Sample Size: 300.

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Sample Unit: People who visit Super Markets.

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Area of Survey: Chennai.

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“Customer Services And Convenience”, brings together the product assortment, store atmosphere, the relation with customers and complementary services offered at the stores (whether being necessities or luxuries), such as banking services, numbers of check out cashiers and availability of car parking, thus encouraging Customers to stay and purchase at the store.

NEED FOR STUDY This research done to understand about customer perception on traditional supermarkets and online supermarket.

Customer is one for whom you satisfy a want or need in return for some of payment. The payment may be money, may be time, or may be goodwill but there is some form of payment. Satisfaction is the level of person felt state by comparing products perceived in relation to the person's expectations. Satisfaction level is function of the difference between perceived performance and expectations. If the performance falls short of expectations, the customer is not satisfied. If the performance matches the expectations the customers are highly satisfied. If the performance is beyond his expectations the customer is thrilled. Customer satisfaction is customer's positive or negative feeling about the value that was perceived as a result of using particular organization's offering in specific used reaction to a series of use situation experience. According to Peter F. Ducker, the purpose of business is to create and then retain a satisfied customer. A society supports business because they serve its member's by catering to their needs and leave them satisfied. If the business dissatisfied its customer's and not only these customers stop availing service , but society at large will condemn the firm and may even penalize it to the point of its extinction METHODOLOGY The primary data is collected from house apartments which are near to the Nilgiris Supermarket and online survey form in Chennai region. The primary data is also collected from personnel interview at BigBasket corporate office.

The secondary data is collected from Journals, magazine and case studies about customer perception and also the company profile from their websites. The collected data is generated with Chi-Square test. These tests are used for generating the results and know the marketing strategy of their company .it also used to know the level of customer satisfaction.

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Research Paper

E-ISSN No : 2454-9916 | Volume : 2 | Issue : 3 | March 2016

DATA ANALYSIS 1. GENDER

Analysis: Percentage of Male-64.3% and Female-35.7% covered in our study.

5. OVERALL RATING

Analysis: This is the online survey report which gives Big Basket is more Preferred by the people in Chennai. The Average of Big Basket is 3.28, Nilgiri’s is 3.19

2. AGE CATEGORY 6. CHI-SQUARE TEST **What is Your Occupation: * Big Basket: Are you willing to Revisit?

Chi-Square Tests Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association

Value 24.109a 23.534 6.926

No. of Valid Cases

Df 8 8 1

Asymp.Sig.(2-sided) .002 .003 .008

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**What is Your Occupation: * Nilgiri’s: Are you willing to Revisit?

Chi-Square Tests

Analysis: 51.4% of the respondents covered belong to the age category of Less Than 25 Years. Remaining belong to other category.

3. OCCUPATION

Value

Df

Asymp. Sig. (2-sided)

Pearson Chi-Square

21.018a

8

.007

Likelihood Ratio

23.264

8

.003

Linear-by-Linear Association

.830

1

.362

N of Valid Cases

274

a. 5 cells (33.3%) have expected count less than 5.The minimum expected count is .14.

0 cells (0.0%) have expected count less than 5. The minimum expected count is 6.41 Inference A statistical method assessing the goodness of fit between a set of observed values and those expected theoretically.

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Statistical hypothesis test in which the sampling distribution of the test statistic is a chi-square distribution when the null hypothesis is true.

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A chi-squared test can then be used to reject the hypothesis that the data are independent.

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The chi-squared test is used to determine whether there is a significant difference between the expected frequencies and the observed frequencies in one or more categories.

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We have used chi square test to analyze the relationship between what is Your Occupation and Big Basket/ Nilgiri's: Are you willing to Revisit?

4. CUSTOMER PREFERENCES Analysis: 53.7% of the respondents preferred BigBasket over Nilgiri’s.

CUSTOMER FEEDBACK BIG BASKET Ÿ Big Basket should concentrate more on Advertising and improve their marketing strategies

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Big Basket helps me to buy products during my leisure time just by clicking an app but that convenience feature is missing in Nilgiri’s. I had torrid experience with Nilgiri’s last

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Sometimes it is so irritating to go to the market for grocery shopping and bear the weight of the heavy grocery items bags to home. Last month, after watching the TV Ad of Bigbasket.com I thought to give it a chance and hence brought the entire grocery for the month from them. As compare to the market store or even malls, I found the prices of this online shop, quite reasonable. Best thing I enjoyed shopping with them is NO TIREDNESS and HIGH CONVENIENCE.

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Behavior of Sales people is good. Card on delivery payment system is very helpful.

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Product derived not good customer support horrible.

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H.Vasantha Kumari- Customer Perception of Services Quality in The Retail Banking sector (1992).

Big Basket cheats their customers with fake offers

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Manish Kumar & Nidhi Singh- A study of diversity in Retail purchases behaviour in food and grocery in NCR (2011).

Big basket is good idea to startup to sell grocery online. City life is busy and schedule are very hectic and we really wants grocery at their door step. I and my friends are using big basket from many day its service is food grosser once order it comes in time with reasonable price.

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Mr. L. Gopalakrishnan & Dr. S. Varadharaj- An empirical analysis on customer satisfaction and store loyalty in organized food and grocery retailing with special reference to Coimbatore city (2012).

NILGIRI’S Ÿ Nilgiri's Need good customer care for solving the issues. Ÿ

Nilgiris try to get fresh products

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Nilgiri's Need a good cleanliness system.

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Come On With an App Nilgiri's.

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Nilgiris- Though the store accepts Sodexo pass, I was surprised to understand that consumers have to buy food products for a minimum value of Rs.250 towards Sodexo pass. Totally unsatisfied with the payment system as well as customer support

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REFERENCES JOURNALS

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Syeda Quratulain Kazmi- Customer perceptions and buying decisions (2012).

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G. Nandhini Devi & Dr. S. Shankaranarayanan- Consumers shopping behaviour of convenience goods in organized Retail stores (2013).

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Dr. Riteshkumar Dalwadi- Customer preferences of Organized Versus Traditional Retail stores in India (2014).

WEBSITES o

www.bigbasket.com

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www.nilgiris.com

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www.mouthshut.com

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www.indianresearchjournals.com

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http://www.surveygizmo.com/s3/2540148/The-Bazaar-War-BIG-BASKET-VsNILGIRI-S

Fast Replacement of products lacks in Nilgiri's.

CONCLUSION From the above test we came to know Chennai still prefers Traditional Market (Nilgiri’s) rather than Digital Market (BigBasket). Chennai is still under developing stage on adapting to Digital market when compared with other Metro cities in India. Big Basket being a first startup to introduce online grocery has done reasonably well in attracting customers to move from their traditional supermarket stores. Thus the survey explains clearly about the change in customer perception.

Around 53% of them prefer Big Basket over Nilgiri’s. From this survey we interpret Big Basket growth in coming years will act as an encouragement for many other online grocery shops to use the technology like Mobile app to order groceries.

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