Chapter 1:

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INTRODUCTION OF THE STUDY

Gone are the days were the consumer went in search of materials from shop to
shop. Today, things are made available in one shop, one place. These days,
consumer buying is not mere transfer of item from seller to buyer. Consumer
wants buying to become happy affair. They would like to see, touch and feel the
commodities that they buy. Understanding this psychology for the consumer
many organizations have come to make purchase of happy affair.

I.1. MARKETING

Marketing is more important as it relates to consumer and their needs, whatever

may be the objectives of business, the main in which it has to concentrate will
be marketing. Business today, concentrating on marketing is found to be fairly
successful though success depends on many other factors. The purchase
decision being an essence is an important aspect of marketing. Consumers are
liable for influence under different environment.

Under these circumstances a study has been conducted to analysis the

preference of consciences towards super [Link] of distribution is
also called marketing channel or trade channel, are used to provide consumer
with a convenient means of obtaining the products and services they desire.
Thus, the route or path through which goods more from the place of production
to the place of consumption is called channel to distribution. There are various
persons or business consumer such as middlemen consisting of wholesalers and
retailers.

I.2. SUPER MARKET STORES

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A super markets, a retail trade shop, was started at strategic place to please the
customer by giving him the choice of selecting all that he wants. There are
number of super markets like Lulu Super markets, Food World, more for you
etc. Every business is based on understanding the consumer and providing the
kind of products that the consumer want every businessman today makes some
effort to convince the consumer for buying a product in a particular shop and for
this reason, the researcher has under taken a survey as to why they prefers per
markets

What are the reasons for their purchase at a supermarket? What makes them to
select supermarkets? That other forms of retails outlet in Coimbatore city.

1.2.2 HISTORY OF SUPERMARKET

In the early days of retailing, products generally were fetched by an assistant

from

Shelves behind the merchant's counter while customers waited in front of the
counter and indicated the items they wanted. Most foods and merchandise did
not come in individually wrapped consumer-sized packages, so an assistant had
to measure out and wrap the precise amount desired by the consumer. This
offered opportunities for social interaction: many regarded this style of
shopping as "a social occasion" and would often "pause for conversations with
the staff or other customers". These practices were by nature slow and had high
labour intensity and therefore also quite expensive. The number of customers
who could be attended to the risk of shoplifting, the costs of appropriate security
measures ideally will be outweighed by reduced labour costs. Historically, there
has been debate about the origin of the supermarket, with Kingkullen and
Ralphs of California having strong claims. Other contenders included

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Weingarten's and Henke and pilot. To end the debate, the Food Marketing
Institute in conjunction with the Smithsonian Institution and with funding from
H.J. Heinz, researched the issue. They defined the attributes of a supermarket as
"self-service, separate product departments, discount pricing, marketing and
volume selling".

1.2.2 GROWTH IN DEVELOPING COUNTRIES

Beginning in the 1990s, the food sector in developing countries has rapidly
transformed, particularly in Latin America, South-East Asia, India, China and
South Africa. With growth, has come considerable competition and some
amount of consolidation. The growth has been driven by increasing affluence
and the rise of a middle class; the entry of women into the workforce; with a
consequent incentive to seek out easy-to-prepare foods; the growth in the use of
refrigerators, making it possible to shop weekly instead of daily; and the growth
in car ownership, facilitating journeys to distant stores and purchases of large
quantities of goods. The opportunities presented by this potential have
encouraged several European companies to invest in these markets (mainly in
Asia) and American companies to invest in Latin America and China. Local
companies also entered the market. Initial development of supermarkets has
now been followed by hypermarket growth. In addition there were investments
by companies such as Makro and Metro Cash and Carry in large-scale Cash-
and-Carry operations.

While the growth in sales of processed foods in these countries has been much

more rapid than the growth in fresh food sales, the imperative nature of
supermarkets to achieve economies of scale in purchasing means that the
expansion of supermarkets in these countries has important repercussions for
small farmers, particularly those growing perishable crops. New supply chains

4
have developed involving cluster formation; development of specialized
wholesalers; leading farmers organizing supply, and farmer associations or
cooperatives. In some cases supermarkets have organized their own
procurement from small farmers; in others wholesale markets have adapted to
meet supermarket needs.

TYPICAL SUPERMARKET MERCHANDISE:

Larger supermarkets in North America and in Europe typically sell many items

Among many brands, sizes and varieties. U.S. publisher Supermarket News lists
the

Following categories, for example: Hypermarkets have a larger range of non-

food

Categories such as clothing, electronics, household decoration and appliances.

• Bakery (packaged and sometimes a service bakery and/or onsite bakery)

• Beverages (non-alcoholic packaged, sometimes also alcoholic if laws permit)

• Non-food & Pharmacy (e.g. cigarettes, lottery tickets and over-the-counter

medications (as laws permit), DVD rentals, books and magazines, including
supermarket tabloids, greeting cards, small selection of home goods like light
bulbs, housewares (typically limited)

• Personal care e.g. cosmetics, soap, shampoo

• Produce (fresh fruits and vegetables)

• Floral (flowers and plants)

• Deli (sliced meats, cheeses, etc.)

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• Prepared Foods (packaged and frozen foods)

• Meat (fresh packaged, frozen, sometimes with a butcher service counter)

• Seafood (fresh packaged, frozen, sometimes with a butcher service counter)

• Dairy (milk products and eggs)

• Centre store (e.g. detergent, paper products, and household cleaning supplies)

Multicultural (ethnic foods)

• Bulk dried foods

1.2.4 FEATURES OF SUPERMARKET

A supermarket has the following characteristics:

• It operates on self - service basis.

• Prices are comparatively lower.

• Credits are not extended to customers.

• It offers large varieties of goods.

• The profit margin is lower.

• Customer service is minimum

• Sales are not compelled.

• Neat display of goods in quite attractive.

CUSTOMER SATISFACTION:

Customer satisfaction is defined as a measurement that determines how happy

customers are with a company’s products, services, and capabilities. Customer

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satisfaction information, including surveys and ratings, can help a company
determine how to best improve or changes its products and services.

An organization’s main focus must be to satisfy its customers. This applies to

industrial firms, retail and wholesale businesses, government bodies, service
companies, non-profit organizations, and every subgroup within an
organization.

FACTORS AFFECTING CUSTOMER SATISFACTION:

1. Empathy

When customers are satisfied with their experience buying a product or service,
they become loyal and are more likely to buy from you again. Empathy is an
emotion felt when someone is understood and shows consideration for others’
feelings.

Customers have a sort of sixth sense when it comes to their service with
companies. It’s not hard to guess which approach leads to happier customers
and more satisfied businesses.

2. Response Time

We live in a fast-moving world. Customers expect products to arrive on their

doorstep hours after they order them, and questions to be answered within
minutes (if not sooner!) of them asking.

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While many companies can't afford round-the-clock staff, away messages that
contain answers to FAQs and chatbots make it possible to interact with your
customers on their time.

3. Convenience

Very few customers will go out of their way to do business with you. If you
make it difficult for them to browse, shop, schedule, or buy, they'll be looking
for another company to provide the solutions they need.

It's important to review your buyer's journey on a regular basis and see if any
areas could be tweaked to increase convenience.

4. Choices

Customers like to have options when it comes to purchasing. They want

different colors, styles, levels of services, and different methods for delivery.
These choices help them feel in control of their own buying experience.

5. Simplicity

While customers like having options, too many options can cause analysis
paralysis and cause your potential customer to give up before they finalize a
purchase. As you design your products and your processes, remember that a
confused mind never buys.

6. Quality

Your customer service may be top-notch, but if your product is of poor quality,
you won't have a returning buyer. Make sure that you create the best possible
product that customers can't live without.

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7. Reasonable Prices

There will always be low range, mid-range, and high range prices. If your
products are of superb quality and your customer service consistently wows, it's
okay to charge more.

However, if you charge more than the market will bear, and more than your
ideal customer can afford, you'll price yourself right out of business.

8. Appreciation

Customers want to feel appreciated for doing business with you. You should
have some sort of follow-up procedure in place to say thank you. This can range
from a quick email to a thank you gift (depending on the value of the product or
service), but will always let your customer know that they are important to you.

9... Loyalty Programs

It's wonderful to offer incentives to new customers coming in, but what about
the loyal customers that have stuck with you from the beginning? Consider
instituting some sort of loyalty program where existing customers receive
discounts, freebies, or access to special content or products as a thank you for
their continued support.

10... Community

The business relationship doesn't have to stop just because the credit card has
been swiped. As humans, we want to feel like we are a part of something
bigger. Creating a community, whether virtual or in-person, around your
product, will help keep your customers engaged with your brand.

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SCOPE FOR THE STUDY

• The purpose of this research was to identify customer perception on

supermarkets.

• This study will be effective for the survey of the supermarket and as well as
manufactures.

• This also helps to know about the problems that customers are facing day to

Day.

OBJECTIVE OF THE STUDY:

1) To analyse the consumer's preference towards supermarket in Coimbatore

2) To identify the level of customer satisfaction

3) To know the prospects of supermarket in Coimbatore

4) To identify supermarket services and their priority.

LIMITATIONS OF THE STUDY:

 The study focus just on more supermarkets and gives a comprehensive

information and data regarding customers from supermarkets in the
mentioned area in Coimbatore.
 This study has shown the various determinants of customer perception and
experience.
 It is assumed that the study would be very useful to researchers as it provides
a clearer insight into the various contributors to a superior customer

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experience which in turn may create a deeper bond towards the retail outlet
and will directly impact the purchase behaviour of the customer.

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12
Chapter 2: Review of Literature:

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1. *Parasuraman, A., Zeithaml, V. A., & Berry, L. L.* (1988). "SERVQUAL: A
Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality."
This seminal work introduced the SERVQUAL model, which has been widely
used to assess service quality dimensions and their impact on customer
satisfaction in various industries, including supermarkets.

2. *Baker, J., Parasuraman, A., Grewal, D., & Voss, G. B.* (2002). "The
Influence of Multiple Store Environment Cues on Perceived Merchandise Value
and Patronage Intentions." This study investigates how store atmosphere
influences customer perceptions of merchandise value and their intentions to
patronize supermarkets.

3. *Dodds, W. B., Monroe, K. B., & Grewal, D.* (1991). "Effects of Price,
Brand, and Store Information on Buyers' Product Evaluations." This research
examines the effects of price perception on customer satisfaction and product
evaluations in the context of supermarkets.

4. *Lichtenstein, D. R., Ridgway, N. M., & Netemeyer, R. G.* (1993). "Price

Perceptions and Consumer Shopping Behaviour: A Field Study." This study
explores the relationship between price perceptions and customer shopping
behaviour, shedding light on the role of pricing strategies in influencing
customer satisfaction in supermarkets.

5. *Reardon, J., Dobscha, S., & Shanahan, K. J.* (1987). "Store Atmosphere:
An Environmental Psychology Approach." This work provides insights into the

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psychological aspects of store atmosphere and its impact on customer
satisfaction and behaviour, including implications for supermarket design and
layout.

6. *Zeithaml, V. A., Berry, L. L., & Parasuraman, A.* (1996). "The Behavioural
Consequences of Service Quality." This study examines the behavioural
outcomes of service quality perceptions, including customer satisfaction and
loyalty, with implications for supermarkets and other service industries.

7. *Liljander, V., & Strandvik, T.* (1997). "The Nature of Customer

Relationships in Services." This research explores the role of customer
relationships in service contexts, highlighting the importance of customer
satisfaction and loyalty in supermarkets and other service businesses.

8. *Bitner, M. J., Booms, B. H., & Tetreault, M. S.* (1990). "The Service
Encounter: Diagnosing Favourable and Unfavourable Incidents." This study
examines the critical incidents that occur during service encounters, including
interactions between supermarket staff and customers, and their impact on
customer satisfaction.

9. *Oliver, R. L., & Swan, J. E.* (1989). "Consumer Perceptions of

Interpersonal Equity and Satisfaction in Transactions: A Field Survey
Approach." This research investigates the role of interpersonal factors, such as
employee behaviour, in shaping customer satisfaction perceptions in
supermarkets and other service settings.

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10. *Cronin Jr, J. J., & Taylor, S. A.* (1992). "Measuring Service Quality: A
Re-examination and Extension." This study proposes an expanded model for
measuring service quality, incorporating factors such as empathy and
responsiveness, which are relevant to understanding customer satisfaction in
supermarkets and other service industries.

 Rajan Saxena (2009), book on “Marketing Management” examine the

drivers of growth in the retailing industry, managerial, strategic and
technological issues in retailing and finally new horizons in retailing. He is
explaining the strategic decisions in retail: Location decision, target market
selection, business model, merchandise mix and positioning the retail store
and explain comprehensively each in details. The book highlights the types
of retail stores: specialty stores, department stores, supermarket, convenience
stores, and discount stores. Adrain Palmer (2009) a book on “Introduction to
Marketing” focuses more on classification of retailers an explain each retail
classes in details. According to Plamer retailers classified in to the following
classes: Department store, supermarkets, discount sheds or category killers,
specialty shops, convenience stores, cash and carry warehouses, market
traders and finally online retailers. Supermarket chains are often the first
with new initiatives such as loyalty cards and in store bakeries. Low price is
based on large-scale efficiency are hard for smaller independent stores to
match. Dr. H. M. Chandrashekar (2016) A paper on “A Study on Organized
Retail on Unorganized Retail Outlets in Mysore City”, He is trying to
examine the growth and development of organized retail industry, factors
which influence consumers to prefer organized retailing over unorganized
retail outlets and vice-versa, impact of organized on the unorganized retail in
Mysore city and identifying the problems of retail outlets and to suggest the
suitable remedies to overcome the existing problem. The study is trying to

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 explain the consumer behaviour that purchase from organized and
unorganized retail shops and trying to know which age group, income group
and so on prefer once against others. Expelling the factors, the effect the
consumers that prefer the organized retail to unorganized and preferences of
unorganized than organized retailing in the market.

 K.C Prakash and P. Paramashivam, 2013 revealed that there was a nothing
close association between income and frequency of the customers in the
supermarket.

 .Ram Mohan, 2013 explained that most of the customer expecting good
manner of approach in the supermarkets and also customers want good
environment inside the supermarket.

 .Mr. Siddhathan. K. M and Mr. Krishna Prasad,2016,suggested to provide

good quality of products at the reasonable rate and also customers expecting
more new product.

 Ramya. K and, Janani 2015 explored that the brand preference of big bazaar
and the customer good opinion about price, supply and quantity. As per the
current situation big bazaar is the well. BintaAbubakar, Felix Mavondo and
Val Clulow described that the most important factor of the store is ethics
food handling and
[Link] behavioral outcomes such as loyalty, and performance outcom
es such as profit. At the sametime, a number of commentators are
questioning the value of merely satisfying customers and focusing attention
instead on the idea of customer delight. Implicit in these debates is the idea

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Chapter 3: Company profile:

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Lulu supermarket:

Lulu Hypermarket, the largest retail chain in the Middle East and one of the
fastest-growing in the world, originated in Abu Dhabi, UAE, in 2000. Its entry
into the Indian market began in 2013 with its first hypermarket opening in
Kochi, Kerala. Since then, Lulu has rapidly expanded its presence across
various states in India, including Karnataka, Tamil Nadu, Telangana, Andhra
Pradesh, Maharashtra, Uttar Pradesh, and others. Lulu's development in India
has been marked by its focus on offering a wide range of products, including
groceries, electronics, fashion, and household items, along with its commitment
to providing a modern shopping experience.

History of lulu supermarket:

Lulu Hypermarket is a popular retail chain based in the Middle East and owned
by the EMKE Group. It was founded in 2000 in Abu Dhabi, United Arab
Emirates. While Lulu Hypermarkets have expanded internationally, including in
India, particularly in states like Kerala, there isn't specific historical information
available about its establishment in Coimbatore. However, Lulu Hypermarket's
presence in Coimbatore is a testament to its growth and success in the Indian
market.

Pazhamudir supermarket:

Pazhamudir Supermarket is a popular chain of supermarkets in Coimbatore,

Tamil Nadu, known for its wide range of fresh fruits, vegetables, and grocery
items. As for its origin and development, Pazhamudir Supermarket was founded
with the aim of providing quality produce and groceries to customers. Over the
years, it has expanded its presence and offerings, catering to the needs of the

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local community and gaining a reputation for freshness and reliability. The
supermarket likely evolved through strategic planning, market research, and
customer feedback to become a prominent player in the retail sector of
Coimbatore.

History of pazhamudir supermarket:

Pazhamudir Supermarket in Coimbatore has a rich history dating back to its

establishment in 1965. It started as a small grocery store catering to the local
community's needs for fresh fruits, vegetables, and essential groceries. Over the
years, through dedication to quality, service, and customer satisfaction,
Pazhamudir Supermarket expanded its operations and became a prominent
name in the retail industry in Coimbatore.

With a focus on providing fresh produce sourced directly from farms and
maintaining high standards of hygiene, Pazhamudir Supermarket earned the
trust and loyalty of its customers. It gradually diversified its product range to
include a variety of groceries, dairy products, snacks, and household items,
becoming a one-stop destination for shoppers.

Through strategic expansion and continuous innovation, Pazhamudir

Supermarket evolved into a modern retail chain with multiple outlets. across
Coimbatore, offering a convenient shopping experience coupled with
exceptional customer service. Its commitment to quality, affordability, and
community engagement has contributed to its enduring success and popularity
among consumers in the region.

Nilgiris supermarket:

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It seems like you're asking about the origin and development of Nilgiri
Supermarket in Coimbatore. Nilgiri's is a popular chain of supermarkets in
South India, known for its wide range of products and quality service. It was
founded in 1905 by Muthusamy Mudaliar in Bangalore. Over the years, Nilgiri's
has expanded its presence to various cities, including Coimbatore. The
supermarket has grown and evolved with time, catering to the diverse needs of
its customers and adapting to changing market trends.

History of nilgiri supermarket:

Nilgiri's supermarket has a significant presence in Coimbatore, but detailed

historical information specifically about its development in the city might not be
readily available. However, it's known that Nilgiri's supermarket chain has been
expanding its reach across South India since its inception in 1905 in Bangalore.
In Coimbatore, like in other cities, Nilgiri's likely established itself by catering
to the growing demand for quality grocery and household products. Over the
years, it has become a trusted name among shoppers in Coimbatore, offering a
wide range of products and services to meet their needs.

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Chapter 4: Data Analysis & Interpertatoin

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 AGE OF THE RESPONDENTS

AGE NO. OF PESPONDENTS PERCENTAGE%

Below 20 73 60.8
21 – 30 34 28.3
30 – 40 6 5.1
Above 40 7 5.8
TOTAL 100 100

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 AGE WISE RESPONDENTS

6%
5%

Below 20
21 - 30
28%
30 - 40
Above 40

61%

GENDER WISE RESPONDENTS

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GENDER NO OF RESPONDENTS PERCENTAGE
Male 69 57.5
Female 51 42.5
TOTAL 120 100

GENDER OF THE RESPONDENTS

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 39%

School level
Degree/ Diploma

61%

EDUCATIONAL QUALIFICATION
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EDUCATIONAL NO. OF PERCENTAGE
QUALIFICATION RESPONDENTS
School level 37 30.8
Degree/ Diploma 58 48.3
PG 5 4.2
Professional 20 16.7
TOTAL 120 100

EDUCATIONAL QUALIFICATION

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 17%

31%
4%

School level
Degree/ Diploma
PG
Professional

48%

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