Customer Satisfaction of Bhatbhatini Supermarket

1. Introduction

1.  Bhatbhatini Supermarket

A department store is a retail establishment offering a wide range of consumer goods in different product categories known as "departments". In modern major cities, the department store made a dramatic appearance in the middle of the 19th century, and permanently reshaped shopping habits, and the definition of service and luxury. Similar developments were under way in London (with Whiteleys), in Paris (Le Bon Marché in 1852) and in New York (with Stewart's).

Bhatbhatini Supermarket was established by Mr. & Mrs. Min B. Gurung in the year 1984 A.D as a small cold store. Since its opening in 1984 A.D. Bhatbhatini with more than 50,000 customers per day; has grown from a ‘single shutter’ 120 sq. ft. cold store to become the leading supermarket and departmental store chain in Nepal, as well as the highest tax payer in the sector since 2008 A.D. The ordinary ‘single shutter’ store has now transformed to become thirteen (13) leading supermarket and departmental stores in Kathmandu, Lalitpur, Pokhara, Chitwan, Dharan and Butwal with nine stores within the Kathmandu valley alone.

BBSM consists of sections that sell the following: clothing, furniture, home appliances, toys, cosmetics, housewares, gardening, toiletries, sporting goods and hardware and additionally select other lines of products such as food, books, jewelry, electronics, stationery, photographic equipment, baby products, and products for pets. Customers check out near the front of the store or, alternatively, at sales counters within each department. BBSM also rets out spaces inside its compound to small food stalls that have been seen to be quiet popular among the customers.

Despite the growth of similar retail stores including Bigmart, KK store, Salesberry, Saleways, etc. BBSM still seems to have captured the largest chunk of the retail industry being the only store that provide a one stop shopping experience to its customers.

1.  Customer Satisfaction:

Customer satisfaction is a measurement or indicator of the degree to which customers or users of an organization’s products or services are pleased with those product or services. Customer satisfaction is a critical issue in the success of any business system, traditional or online. Most companies say that they believe in great customer service but only a few set up a system to guarantee that they provide it. In a turbulent commercial environment, in order to sustain the growth and market share, companies need to understand how to satisfy customers, since customer satisfaction is critical for establishing long term client relationships. It is evidenced by the fact that over the last five years, customer satisfaction surveys have become common in many financial institutions. Thus a fundamental understanding of factors impacting customer satisfaction is of great importance to business.

Studies done till date, have been undertaken to identify quality dimensions and detailed aspects of services and their relationships with customer satisfaction.  Achieving quality service in the eyes of the customer requires proactive organizational commitment. According to Berry et al., (1994) ‘service’ plays a key role in providing value and drives a company’s success. For the customer, this represents the benefits received against the burdens – like high price, an inconvenient location, unfriendly employees, or an unattractive service facility. Quality service helps to maximize the benefits and minimize such errors. Understanding customer expectations and measuring the organizations performance with regard to them are a central component of building service quality.

With the rise in competition in the market environment, departmental stores are increasingly realizing the need to focus on service quality as a measure to improve their competitive position. Customer services plays a vital role for organizations to have competitive advantage.

This research will help us find out the attributes and variables that influence the customer’s behavior towards a given product offering and it shapes the attitudes of the customers favorably towards a specific product, thus by analyzing these undertones we will be able to find out the levels of customer satisfaction for BBSM.

1.  Problem Statement

BBSM has grown significantly as a brand selling products under its own name as well. Having started from a small cold store, it now has 9 stores within Kathmandu valley and 4 outside the valley. In today’s market environment, the emphasis has shifted from the producers to the customers and his/her needs. With the consumers becoming more involved in the marketing process the need for information regarding the customer needs has become increased significantly.

As a well-established outlet, BBSM is currently enjoying a decent level of success. However, it is difficult to find a structured report on the aspects of what BBSM customers find most valuable and what the areas on which improvements are being sought are. Although few literatures are available on similar topics, they are not in context to the Nepalese market similar to BBSM. This research is an insight into the minds of the consumers of BBSM, which will help us determine the factors that influence the level of customer satisfaction among the consumers with an aim to fill up the information gap to a certain extent.

1.  Research objectives

1. Major Objective:

The major objective of the study is to identify the satisfaction level of customers with the service and facilities being provided by BBSM in Kathmandu.

1. Specific Objective:

-        To use statistical tools to correlate demographic variables like age, gender and occupation with the service preference at BBSM.

-        To distinguish and categorize various features and facilities of BBSM in order of their preference.

-        To clarify current perception of customers towards BBSM and recommend further scope of improvement

1. Theoretical Framework

1. Research questions

Some basic questions that the research will seek to answer are as follows:

• How much does the staff behavior affect the satisfaction of customers?
• Does the food stalls attract more customers?
• Do people of a particular age group have similar preferences on the service?
• Does store ambience affect satisfaction level?
• Does the ease of parking lead to customers choosing BBSM over other supermarkets?

1. Hypothesis  

Depending on the above research questions, some hypotheses will be generated and their status will be tested using appropriate statistical tools. The hypotheses are as follows:

1. Null Hypothesis (Hо): There is a no significant relationship between staff’s behavior and customer satisfaction.

Alternative Hypothesis (H1): There is a significant relationship between staff’s behavior and customer satisfaction.

1. Null Hypothesis (Hо): There is a no significant relationship between food stalls and number of visits.

Alternative Hypothesis (H1): There is a significant relationship between food stalls and number of visits.

1. Null Hypothesis (Hо): There is no significant relationship between age group and service preference.

Alternative Hypothesis (H1): There is significant relationship between age group and service preference.