Relationship between service quality & customer loyalty

CHAPTER 1

[DOCUMENT TITLE]

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INTRODUCTION

1.1Service Quality
Service quality is frequently regard as a global judgment, or attitude, connecting the benefit of
the service (Parasuraman, Zeithaml and Berry). It cannot be left exclusive of the important power
of service quality on business presentation, smaller costs, customer approval, customer loyalty
and output. Therefore, service greatness has been traditional a great deal of receptivity to
practitioners, manager and researchers over the history little years.

1.1.1Service Quality Model

It is rather hard to segment service quality in compare to good’s quality. Because
different substantial products, service product has a smaller amount touchable cues (Parasuraman
et al., 1985) and also require upper consumer taking part in the utilization process (Gronroos,
1984). Gronroos (1984) create that three magnitude together with practical quality, functional
quality and marketable image to assess service quality. industrial height refers to the outcome or
what is deliver or what the customer gets from the service. practical height relates to the manner
in which the repair is deliver or how it is delivered. The last height is build by mostly both
scientific and purposeful quality and to some factors like the established marketing activities.

It is the original do research on repair quality model. However, SERVQUAL by Parasuraman et

al., (1985) has been recognized as the the majority widely-used repair quality model. This
representation obtainable ten key repair quality aspects namely dependability, reaction,
capability, admission, good manners, message, trustworthiness, tangibles, accepting the customer
and safety. By 1988, Parasuraman (1988) superior these ten magnitude into only five magnitude
such as Tangibles, dependability, receptiveness, declaration and understanding.

1.1.2 Retail Service Quality Model and Dimensions

Though SERVQUAL has been empirically experienced in a number of study, it has not been
validate in a trade manufacturing Dabholkar et al., (1996) urbanized go Service Quality size
(RSQS) based on SERVPERF size. This size comprise of 28 substance of which 17 substance
from SERVPERF and 11 substance urbanized by qualitative study. It has five magnitude –
corporal aspect, dependability, private announcement, difficulty solve, and strategy.

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The expediency of shopping such as store up describe also is one of service superiority
magnitude in trade which impact on customers’ perceptioz.

Table 1.1 Dimensions of Service Quality

1.1.3 RSQS
The trade situation nowadays is altering supplementary fast than any time in fresh memory
(Dabholkar, 1996). It is portray by growing divergence from mutually narrow and isolated
organization, a wave of amalgamation and attainment, and supplementary fashionable and
request clients who have grand supplies approved with their procedure encounter (Sellers, 1990;
Smith, 1989). obtainable looking at display that shopper pleased with profit quality are well on
the way to stay unwavering (Wong and Sohal, 2003). government quality is seen as an gadget to
make superior an inspiration for the consumer; as a method for situating in a listening carefully
area (Mehta, Lalwani and Han, 2000). By enjoyable customers through stunning government,
industry firm grip their in number present customers, as strong as expansion their part of the in
universal commerce.

many question paper on profit superiority depended on benefit excellence build and size by
Parasuraman et al. (1988). Be that as it can, this compliance to the sell business may not be
suitable for benefit quality in transaction developed is by all accounts private in family member
to dissimilar administration (Kaul, 2005; Dabholkar et al, 1996). In trade surrounds, above all

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trade location where there is a bring collectively of item and administration, retailer are almost
positively going to have affect on benefit quality more than on item quality (Dabholkar et al.,
1996). As seller can make such impact, benefit quality assume a enormous key part in construct
quality discernments.

1.1.4 Service Quality Measurement

Management quality is characterize as 'a international decision or mentality, identify with the
universal prevalence of the management (Parasuraman, Zeithaml and Berry, 1988, p16). The
judgment of management quality wind up basic for the commerce to attain higher hand.
management quality knowledge There are many retail benefit quality model. The principle
advantage quality models are SERVQUAL and GAP show by Parasuraman et al. (1988),
SERVPERF by Cronin and Taylor (1992), Retail Service Quality Model by Dabholkar et al.
(1996).

SERVQUAL and Gap Model: In 1980s, in the try to typify benefit excellence and put up up a
model of management quality, Parasuraman et al. led an investigative assessment. The outcomes
traditional that paying little respect to the kind of organization, shopper utilize fundamentally the
relative criteria in assess management quality (Parasuraman et al., 1985).

They noticeable those 10 criteria "advantage quality determinants". From that point onward,
improvement quality was characterize through 10 capacity: get to, mail, ability, civility, strength,
stanch quality, receptiveness, safety, property and sympathetic/knowing the client. later, they
were reorganize into five capability together with effects, dependability, responsiveness,
justification and accepting. This model make obvious that customer view of value are impacted
by five hole incidence in the in process of organization transport. The basic begin is that
organization excellence can be characterize by the differentiation among probable management
and saying advantage (Parasuraman et al, 1985). The first four are those on the influence
relationship side of administration. Hole 5 is documented with the customer side of management.
These hole are the differentiation between what clients probable and what management saw
customer credible; the delineation among organization view of customer supply and the
accepting of those justification into profit quality determinations; the differentiation flanked by
real running excellence information and the moving of those facts to client benefit actually
convey; the differentiation among the administration convey to clients and the exterior crossing
point about the organization; and the differentiation among shopper needs and recognitions.

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In ill will of the information that SERVQUAL has been linked in the examination of a variety of
kind of management enterprise, there are in no hesitation restraint and reaction. A piece of the
diagonally the plank concern are the 5 dimension system of the level, the appropriateness of
operationalizing management excellence as the needs exhibition hole make, and the weighing
mechanism immaterialness to a trade surroundings (Backus and Boller, 1992; Finn and Lamb,
1991; Reeves and Bender 1994).

1.1.5 SERVPERF
With a argument that Parasurman et al's. opening theory of management excellence was uphold
by negligible new or theoretical evidence, Cronin and Taylor (1992) built up an "implementation
based" management quality judgment size called SERVPERF. The genuine difference among
these two weighing machine is that SERVQUAL operationalises advantage excellence by look at
the feeling of the management get with needs, even as SERVPERF keep up immediately the
view of management excellence. The SERVPERF level comprise of 22 credit belongings
excepting any consideration of needs. The occurrence of SERVPERF over SERVQUAL has
been exposed in a variety of examination as well as those by Avkiran (1999), Lee et al. (2000)
and Brady et al. (2002). however, the proceed with operation of and orientation to SERVQUAL
in showcasing script suggest that "conformity has not yet been achieve in admiration to the
prevalence of implementation just events of management excellence"

1.2Customer Loyalty
There are a lot of dissimilar brand on the market these days. Therefore, maintain client loyalty is
a very hard and confront for any business and organization. though, when clientele feel satisfied
with goods/services, they will have a bent to be devotion with business and organization. from
beginning to end that, company will live and expand more steadily. Foss and Stone (2001) stated
that client devotion relate to what clientele think and do. devotion is best definite a state of brain
a set of attitude, beliefs and needs etc. Ndubisi (2005) and Pfeifer (2005) mention that the cost of
portion a devoted client is five or six times less than portion a new client. In adding, Walsh et al.
(2005) also unspecified that it is improved to look after the obtainable clientele before acquire
new clientele.

Gee et al. (2008) listed the compensation of client loyalty as follow:

(1) The repair price of a devoted client is less than new clientele

(2) They will disburse senior expenses for a set of goods; and

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(3) For a corporation, a devoted client will act as a idle talk advertising manager.

as well, Auh and Johnson (2005) distinct amass authenticity as the option or inclination of
repurchasing a exact affected goods or service. It reflect that amass commitment is a straight
outcome of customer approval, and client approval plays a position as an necessary means for
increasing devotion. In some study of Cho and Lim (1999), and La (2009), they outlook 3 sorts
of royalty’s move toward as well as behavioral move toward, attitudinal move toward and
included come close to.

first of all, a behavioral-theory-based move in the direction of argue that only performance speak
for make devotion, or devotion is the management of avoid the in order look for of
accompanying brand. Secondly, an attitudinal move toward events the amass faithfulness by the
favorite for and emotional promise to a exact stock up, and intention to re-use (Jeon et al., 2009).
Thirdly, there is an included move toward which immediate both behavioral views and
attitudinal views on loyalty (Ji & Lee, 2009).

as well the examine of client loyalty’s definitions, a figure of customer devotion and client
agreement indicator have been urban and sensible in dissimilar countries. In 1989, the result of
the study of client contentment is the discovery of devotion or their protest for goods/services.

Fornell et al (1992) future a system of measure client approval in the world at the national level
(SCSB – Swedish client approval Barometer). Then, Fornell (1996) in print ACSI (American
Customer Satisfaction Index) in U.S. Until now, CSI models has been applied in 10 countries
such as Sweden in 1989, Germany in 1992, ACSI in 1994, Norway, Switzerland, South Korea,
New Zealand and Taiwan, China, Malaysia. Besides, ECSI (European Customer approval Index)
has been deploy at the same time in 11 European countries.

Table 1.2 Service Quality To Customer Loyalty

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1.3 Service Quality and Customer Loyalty

The sell division has realize the need to revamp commerce operation in order to make the
maximum levels of competence thereby the levels of excellence in their organization increase in
customer demands and expectations have challenged firms to come up with exceptional methods
of improving the quality of service. As a results many companies have realize the client
centricity of the manufacturing and have listening watchfully on excellence in their operation in
order to win and keep them.

In conditions of loyalty’s anxiety to move to devotion move toward from approval only approach
through reliable excellence release can considerably get better client retentions.

repair excellence all boil down to the experience and anticipations of the customer of the repair
and the ancient goal of any firm is to please the customer, make stronger and uphold relationship
with the client and attain client devotion.

Based on five factor I have maser the client devotion they are

1) substantial Aspect

2) dependability

3) individual communication

4) difficulty solve

5) Policy.

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Substantial Aspect

manifestation and expediency of go lay up.

Reliability

Retailers keep their promises and do the right things

Individual communication

Repair workers are polite/helpful and motivate self-confidence in clientele

difficulty solving

Trade store employees are accomplished to touch income and exchanges as well as customer’
complaint.

Policy

Store up rule on process hours, goods excellence, parking, and credit

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CHAPTER-2

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INDUSTRY PROFILE

2.1 Retail Industry

2.1.1 Introduction
The Indian sell industry has emerge as one of the most lively and fast-paced industry due to the
entry of more than a hardly any new group of actors. It financial records for over 10 per cent of
the country’s disgusting household Product (GDP) and approximately 8 per cent of the
employment. India is the world’s fifth-largest global purpose in the sell space.

Indian Retail Industry has enormous possible as India has the second major population with
wealthy center class, rapid urbanization and solid enlargement of internet.
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 sell refers to the activity of reselling. A merchant is any person or system of

government is a reseller who sells merchandise or services straight to customers or end-
users.

 Some retailer may sell to commerce customers, and such sale are termed non-
retail activity.

 In some region, legal definitions of retail specify that at least

 80 percent of sales activity must be to end-users.

 10 % of its GDP as on 2016

 8 % of the employment

The Indian sell market is probable to be US$ 450 billion and one of the top five go markets in the
world by financial value.

2.1.2 Market Size

India’s sell market is likely to add to by 60 per cent to reach US$ 1.1 trillion by 2020, on the
back of factor like growing income and standard of living change by central point class and
bigger than before digital connectivity. Where as the in general go market is expected to produce
at 12 per cent per annum, current do commerce would make bigger twice as fast at 20 per cent
per annum and straight trade at 10 per cent. Indian go market is divided into “Organised Retail
Market” which is valued at $60 billion which is only 9 per cent of the total sector and
“Unorganized go Market comprise the rest 91 per cent of the division.

India’s Business to commerce e-commerce marketplace is predictable to reach US$ 700 billion
by 2020.Online go is expected to be at par with the bodily stores in the after that five years and
has grown-up 23 per cent to $17.8 billion in 2017.

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India’s total potential of Business to purchaser is expected to be US$ 26 billion, of which $3
billion can be achieve in the next three years from 16 manufactured goods group, according to a
study by grouping of Indian chamber of trade and manufacturing (FICCI) and Indian Institute of
Foreign Trade (IIFT).

India has return China as the most talented markets for retail development, support by growing
wealth, coupled with booming spending rates, urbanizing inhabitants and increasing center class.

India is feasible to turn out to be the world’s finest growing e-commerce market, positive by
healthy theory in the division and speedy augment in the figure of internet users. different agency
have high outlook about magnification of Indian e-commerce market. Indian e-commerce sales
are feasible to reach US$ 120 billion! By 2020 from US$ 30 billion in FY2016. Added, India's e-
commerce market place is expected to reach US$ 220 billion in terms of unlikable products
value (GMV) and 530 million shopper by 2025, led by faster speeds on faithful telecom network,
faster getting of online military and enhanced assortment as well as convenience.

India’s without delay promotion industrialized is expected to reach Rs 159.3 billion (US$ 2.5
billion) by 2021, if make available with a contributing to environment from end to end reform
and guideline.

Indian export of near by made sell and ordinary of living goods grew at a CAGR of 10 per cent
from 2013 to 2016.

India is expected to turn out to be the world's third-largest customer monetary system,
achievement US$ 400 billion in spending by 2025.

Comfort marketplace of India is expected to produce to US$ 30 billion by the end of 2018 from
US$ 23.8 billion 2017 support by growing opening of worldwide brands in the middle of Indian
youth and superior purchase power of the higher class in tier 2 and 3 cities, according to
Assocham.

The size of contemporary sell in India is predictable to twice to Rs 171,800 crore (US$ 25.7
billion) from Rs 87,100 crore (US$ 13 billion) in three years driven by omni-channel retail.

2.1.3 Investment Scenario

The Indian work trade has anticipated Foreign Direct assumption (FDI) justice inflows totaling
US$1.09 billion during April 2000–September 2017, according to the division of manufacturing
Policies and back-up (DIPP).

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With the increasing need for procurer merchandise in various sectors as well as customer
electronics and home piece of apparatus, many company have expend in the Indian sell space in
the past few months.

 part of
 residential Policy and support (DIPP) approved three foreign direct reserves (FDI), ton
follow Food, Kohler India business, and Merlin amusement India in the on its own brand
go sector and two FDI application of over Rs 400 crore (US$ 62.45 million) within the
trade sector.

 With 2017 being a triumphant year for herbal-a yurvedic brands, new Indian organic
labels in hair care, groundwork, food and garments are belting up to carve an natural
niche in the increasing herbal section.

 Investments by personal independence firms in Indian put on the marketplace sector

reach US$ 200 million in the first half of 2017, with seven new universal brands towards
the within India throughout the period.

2.1.4 Government Initiatives

The Government of India has taken a variety of initiative to get better the trade industry in India.
Some of them are listed below:

 The administration of India may modify the Foreign Direct Investment (FDI) system in
food giving out, in a bid to allow e-commerce companies and foreign retailer to sell Made
in India buyer products.

 Administration of India has authorized 100 per cent Foreign Direct Investment (FDI) in
online trade of goods and military through the routine route, thereby given that clarity on
the breathing business of e-commerce company functioning in India.

The Indian trade business is one of the best ever growing in the world. trade developed in
India is commonplace to grow to US$ 1,100 trillion by 2020 from US$ 672 billion in
2017.India is the fifth major preferred retail purpose worldwide. The country is among
the uppermost in the world in surroundings of per capita put on the market amass ease of
use. India’s trade sector is occurrence exponential improvement, with retail development
taking place not just in main cities and metros, but also in Tier-II and Tier-III cities. in

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good physical shape monetary growth, altering demographic profile, growing incidental
incomes, urbanisation, altering customer tastes and preferred are the other factor serious
improvement in the predetermined do industry souk in India.

India’s general public is agreeable to online do business in a big make-up. The online
trade market is regular to manufacture from US$ 17.8 billion to US$ 60 billion stuck
between 2017 and 2020. It is forecasted to grow at a CAGR of over 30 per cent from
2016 to 2021, on the back of move from conventional trade to online channel by
millennial. prearranged retail distribution is normal to intensify from 7 per cent in FY
2016-17 to 10 per cent in 2020. India is traditional to expand into the world's third-largest
customer financial system, completion US$ 400 billion in spending by 2025. ^ Indian
organic package food market is common to manufacture at 17 per cent to reach Rs 871
million (US$ 13.51 million) in 2021 from Rs 533 million (US$ 7.93 million) in 2016.

growing payment from strange and private players has given a boost to Indian sell
industry. India’s value competitiveness attracts large trade group of actors to use it as a
source foot Global vendor such as Wal-Mart, GAP, Tesco and JC Penney are greater than
ever their groundwork from India and are moving from third-party introduce offices to
found their hold wholly-owned/wholly-managed source and commerce offices.

The management of India has commence reforms to attract Foreign Direct Investment
(FDI) in retail industry. The administration has accepted 51 per cent FDI in multi-brand
retail and 100 per cent in solitary brand trade under the routine route which is normal to
give a boost to ease of action business and Make in India, and plans to allow 100 per cent
FDI in e-commerce. India will be converted into a constructive market for style retailers
on the back of a big young adult customer base, rising disposable income and
comfortable FDI norms.

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2.1.4 Format of Retail in India

 Departmental stores: They are universal retail merchandisers

payment quality goods and military.

 Convenience stores : Are situated in housing areas with to some

extent higher prices goods due to the ease offered

 E-tailors: Are seller providing online business and business of goods

and services.

 Discount stores: These are factory outlet that give reduction on the
MRP.

 Vending: It is a comparatively new admission, in the go sector. Here

beverages, snacks and other small stuff can be bought via transaction mechanism.
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 Shopping malls: The principal form of trade in India, malls

offers customers a mix of all types of commodities and services counting
interruption and food under a single roof.

 Category killers: Small subject provisions that offer a collection

of category. They are known as group killer as they focus on detailed
category, such as electronics and honourable goods. This is also known as
Multi Brand Outlets or MBO's.

 Specialty stores : Are retail manacles business in detailed

category and provide deep variety.

 Wholesale stores: trade goods in bulk amount only e.g. metro

and Shoprite holding.

 Hypermarkets: Large self-service outlets

Top Players

 Reliance
 Shoppers Stop
 Landmark Group
 Aditya Birla Group

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COMPANY PROFILE

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2.2 Metro Cash And Carry

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Founded 1964

Headquarters Germany

Key people Olaf Koch, CEO

Products Fast-moving consumer

goods

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Metro is an worldwide self-service vendor. It operate across Europe and in some
countries of Asia and Northern Africa. It is the largest sales division of the German trade and
retail giant Metro AG.

METRO Cash & Carry is dissimilar from B2C retail chains (such as Walmart, Carrefour
or Tesco) in that its business thought is targeted towards expert clients rather than end
consumers. The cash-and-carry thought is based approximately self-service and bulk exchange.
METRO Cash & Carry serves to registered clients only. Core customer groups are hotels,
restaurants, caterers, traders and other business professionals.

 In Indian in 2003 it was started.

 METRO Cash & Carry is an international self-service wholesaler
 The company at present operates twenty-four wholesale distribution centres including six
in Bangalore, four in Hyderabad, two each in Mumbai and Delhi, and one each in
Kolkata, Manipur, Jalandhar, Zirakpur, Amritsar, Vijayawada, Ahmadabad, Surat, Indore
and Luck now.

2.2.1 METRO in all countries

METRO Cash & Carry is operating over 747 stores in 27 countries

Country First wholesale center Number of wholesale centers

Germany 1964 107

France 1971 94

China 1996 80

Russia 2001 84

Italy 1972 49

Poland1 1994 41

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Spain1 1972 37

Ukraine 2003 33

Romania 1996 31

Turkey 1990 28

Vietnam 2002 19

India 2003 24

Netherlands1 1968 17

Belgium1 1970 15

Czech Republic1 1997 16

Hungary 1994 13

Austria 1971 12

Bulgaria 1999 11

Pakistan 2007 10

Portugal1 1990 10

Serbia 2005 10

Greece1 1992 9

Japan 2002 9

Kazakhstan 2009 8

Croatia 2001 7

Slovakia 2000 6

Moldova 2004 3

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2.2.3 Metro in India

METRO Cash & Carry entered the Indian market in 2003. The company at present operate
twenty-four comprehensive allocation centres including six in Bangalore, four in Hyderabad, two
each in Mumbai and Delhi, and one each in Kolkata, Jaipur, Jalandhar, Zirakpur, Amritsar,
Vijayawada, Ahmadabad, Surat, Indore and Luck now. Metro has stores in the following cities

METRO Cash and Carry India's centre clients incorporate little retailers and kirana stores,
lodgings, eateries and food providers (HoReCa), corporates, SMEs, a wide range of workplaces,
organization and establishment, and in adding up separately working experts. Just business
customers are permitted to buy at METRO, every one of them appropriately enlisted and
furnished with a client employment card. With significant worldwide skill and a nuanced
comprehension of the Indian market sharpen in the course of current years, METRO Cash and
Carry India is all around situated to take into account the exacting needs of all these client
segment.

METRO Cash and Carry India offers near 7,000 world-class items over a huge digit of
classifications -, for example, unprocessed merchandise and vegetables, universal basic need,
dairy, solidify and pastry shop items, angle and white meat, candy store, cleansers and cleaning
goods, wellbeing and quality items, media and gadget, family unit commodities and clothing - all
under one rooftop, and at undemanding, low discount costs. This causes us enhance our clients'
donations, while giving them a solid supply source. contravention down the locality
prerequisites, an extensive level of the merchandise are source locally and are watchfully fit to
meet the exacting requests of the area.

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CHAPTER 3

3.1 Need for the Study

Ultimate goal of any company is to maximise the profits, the profit maximisation is possible if
customers are highly satisfied. Now a days the customers are expecting quality in the products,

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quality in the service. There is a need for the companies to focus their factors which are
influencing customer satisfaction in quality service.

3.2Statement of the Problem

There is intense competition in Indian Retail Industry where every firm is trying to adopt
numerous strategies to retain its existing customers and also to attract new customers. Further,
availability of wide range of choices and switching options for customers also throws a challenge
to the companies to focus on service quality. Poor responses and inadequate attention to
customer complaints, delay in delivery, etc also poses a problem for companies to make feel
their customers loyal to them.

3.3 Objectives of the Study

 To identify the factors affecting customer loyalty to the Metro.

 To measure the overall satisfaction of the customers towards services offered

 To find out the relationship between the service quality and customer loyalty of Metro
customers.

3.4 Scope of the Study

The scope of the study is inadequate to find out the rapport among facility superiority and brand
loyalty of customer with respect to Metro Cash And Carry, Bangalore An effort is also made to
find out factor that heaviness the loyalty. Additional the study cover measurement of overall
happiness of purchaser towards services offered.

3.5 methodology

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Sources of Data:-

Primary Data:- The mode of collection of data is through structured questionnaire

Secondary Data:- Data is collected through magazines, journals, related books.

Sampling Unit: - Metro Cash And Carry, Bangalore,Hosa road (DC-19)

Sampling Method: -convenience sampling method

Sampling Size: - 202

Hypothesis of the study:-

H0:- There is no significant association between gender and service quality

H1:-There is significant association between gender and service quality

H0:- There is no significant association between gender and Customer loyalty

H1:-There is significant association between gender and Customer loyalty

H0:- There is no significant association between Education and Customer loyalty

H1:-There is significant association between Education and Customer loyalty

H0:- There is no significant association between Education and service quality

H1:-There is significant association between Education and service quality

Statically tool: -Regression ,Chi-Square Test

3.6 Limitations of the Study

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 Study is limited only Dc-18 Branch

 The study limit is 45 days the study may focus on implication of repair quality and brand
loyalty.

 Due time restraint sample size is incomplete only to Bangalore (DC 18).

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CHAPTER 4

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4.1 Gender Wise Classification Of Respondents

Table 4.1 Gender Wise Classification Of Respondents

Particulars No. of. Respondents Percentage of Respondents

Male 87 43

Female 115 57

Graph 4.1 Gender wise classification of responds

GENDER WISE CLASSIFICATION OF

RESPONDENTS
115
87

MALE FEMALE

Interpretation
From the above table the gender wise respondents Female respondents(115) are more than
the Male respondents(87)
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Change Statistics

Adjusted R Std. Error of R Square

Model R R Square Square the Estimate Change F Change df1

1 .777a .603 .593 .44367 .603 59.574 5

Interpretation

From the above table it is observed that R square =0.603 (Adjusted R square =0.593) indicates
that 60.3 percent of the variances on Metro cash and carry customer loyalty is explained by 5
factors provided in the out put

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 58.633 5 11.727 59.574 .000b

Residual 38.581 196 .197

Total 97.215 201

Interpretation

F produce (F=59.574) shows significant impact of factors on Customer loyalty

Customer loyalty (Y)= constant (a)+b1(PA)+b2(RB)+b3(PI)+b4(PS)+b5(POL)

=-8.621+0.996PA+0.326RB-0.179PI+0.317PS+1.586POL

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Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta T Sig.

1 (Constant) -8.621 1.217 -7.083 .000

PA .996 .108 .511 9.253 .000

RB .326 .064 .248 5.106 .000

PI -.179 .120 -.081 -1.492 .137

PS .317 .105 .208 3.006 .003

POL 1.586 .207 .499 7.675 .000

Interpretation

There is a strong relationship between Physical Aspects and customer loyalty

There is a strong relationship between Reliability and customer loyalty
There is no relationship between personal interaction and customer loyalty

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Relationship between service quality & customer loyalty
There is a strong relationship between Problem solving and customer loyalty
There is a strong relationship between Policy and customer loyalty

4.4 Chi-Square Test

4.4.1Relationship between Education and Physical Aspects

H0: There is no association between Education and satisfaction towards Physical Aspect
H1: There is association between Education and satisfaction towards Physical Aspect

Descriptive Statistics

Std. Minimu Maximu

N Mean Deviation m m

PA 202 4.1337 .35717 3.50 4.50

Education 202 2.139 .9978 1.0 4.0

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Test Statistics

PA Education

Chi-Square 15.426a 24.455a

Df 3 3

Asymp.
.001 .000
Sig.

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 50.5.

Interpretation

 The significance is < 0.05, H0 is rejected and H1 is accepted

 The level of education of customers equally influences there satisfaction towards the
metro Physical Aspects.

4.4.2 Relationship between Education and Reliability

H0: There is no association between Education and satisfaction towards Reliability
H1: There is association between Education and satisfaction towards Reliability

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Std. Minimu Maximu

N Mean Deviation m m

RB 202 4.3564 .53046 3.33 5.00

Education 202 2.139 .9978 1.0 4.0

Test Statistics

RB Education

Chi-Square 86.356a 24.455b

Df 5 3

Asymp.
.000 .000
Sig.

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 33.7.

b. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 50.5.

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Interpretation
 The significance is < 0.05, H0 is rejected and H1 is accepted
 The level of education of customers equally influences there satisfaction towards the
metro reliability

4.4.3Relationship between Education and Personal Interaction

H0: There is no association between Education and satisfaction towards Personal Interaction
H1: There is association between Education and satisfaction towards Personal Interaction

Descriptive Statistics

Std. Minimu Maximu

N Mean Deviation m m

PI 202 4.0644 .31673 3.50 4.75

Education 202 2.139 .9978 1.0 4.0

Test Statistics

PI Education

Chi-Square 55.921a 24.455b

Df 4 3

Asymp.
.000 .000
Sig.

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Relationship between service quality & customer loyalty

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 40.4.

b. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 50.5.

Interpretation
 The significance is < 0.05, H0 is rejected and H1 is accepted
 The level of education of customers equally influences there satisfaction towards the
metro personal interaction

4.4.4 Relationship between Education and Problem Solving

H0: There is no association between Education and satisfaction towards Problem solving
H1: There is association between Education and satisfaction towards Problem solving

Descriptive Statistics

N Mean Std. Deviation Minimum Maximum

PS 202 4.0891 .45564 3.33 5.00

Education 202 2.139 .9978 1.0 4.0

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Test Statistics

PS Education

Chi-Square 72.099a 24.455b

Df 5 3

Asymp. Sig. .000 .000

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 33.7.

b. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 50.5.

Interpretation

 The significance is < 0.05, H0 is rejected and H1 is accepted.

 The level of education of customers equally influences there satisfaction towards the
metro Problem solving.

4.4.5 Relationship between Education and Policy

H0: There is no association between Education and satisfaction towards Policy
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H1: There is association between Education and satisfaction towards Policy

Descriptive Statistics

N Mean Std. Deviation Minimum Maximum

POL 202 4.1423 .21885 3.63 4.50

Education 202 2.139 .9978 1.0 4.0

Test Statistics

POL Education

Chi-Square 55.465a 24.455b

Df 5 3

Asymp.
.000 .000
Sig.

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 33.7.

b. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 50.5.

Interpretation

 The significance is < 0.05, H0 is rejected and H1 is accepted.

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 The level of education of customers equally influences there satisfaction towards the
metro Policy.

4.4.6 Relationship between Education and Customer loyalty

H0: There is no association between Education and satisfaction towards Customer Loyalty
H1: There is association between Education and satisfaction towards Customer Loyalty

Descriptive Statistics

Std. Minimu Maximu

N Mean Deviation m m

OCL 202 4.0528 .69545 2.33 5.00

Education 202 2.139 .9978 1.0 4.0

Test Statistics

OCL Education

Chi-Square 51.248a 24.455b

Df 6 3

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Relationship between service quality & customer loyalty

Asymp.
.000 .000
Sig.

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 28.9.

b. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 50.5.

Interpretation

 The significance is < 0.05, H0 is discarded and H1 is accepted.

 The level of education of customers equally influences there satisfaction towards the
metro Customer loyalty.

4.5.1 Relationship between Gender and Customer loyalty

H0: There is no association between Gender and satisfaction towards Customer Loyalty
H1: There is association between Gender and satisfaction towards Customer Loyalty

Descriptive Statistics

Std. Minimu Maximu

N Mean Deviation m m

OCL 202 4.0528 .69545 2.33 5.00

Gender 202 1.569 .4964 1.0 2.0

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Test Statistics

OCL Gender

Chi-Square 51.248a 3.881b

Df 6 1

Asymp.
.000 .049
Sig.

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 28.9.

b. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 101.0.

Interpretation

 The significance is < 0.05, H0 is rejected and H1 is accepted.

 Gender of customers equally influences there satisfaction towards the metro Customer
loyalty.

4.5.2 Relationship between Gender and Physical Aspect

H0: There is no association between Gender and satisfaction towards Physical Aspect
H1: There is association between Gender and satisfaction towards Physical Aspect

Descriptive Statistics

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Relationship between service quality & customer loyalty

Std. Minimu Maximu

N Mean Deviation m m

PA 202 4.1337 .35717 3.50 4.50

Gender 202 1.569 .4964 1.0 2.0

Test Statistics

PA Gender

Chi-Square 15.426a 3.881b

Df 3 1

Asymp.
.001 .049
Sig.

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 50.5.

b. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 101.0.

Interpretation

 The significance is < 0.05, H0 is rejected and H1 is accepted.

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 Gender of customers equally influences there satisfaction towards the metro Physical
Aspect.

4.5.3 Relationship between Gender and Reliability

H0: There is no association between Gender and satisfaction towards Reliability
H1: There is association between Gender and satisfaction towardsReliability

Descriptive Statistics

Std. Minimu Maximu

N Mean Deviation m m

RB 202 4.3564 .53046 3.33 5.00

Gender 202 1.569 .4964 1.0 2.0

Test Statistics

RB Gender

Chi-Square 86.356a 3.881b

Df 5 1

Asymp.
.000 .049
Sig.

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 33.7.

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Relationship between service quality & customer loyalty

b. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 101.0.

Interpretation

 The significance is < 0.05, H0 is rejected and H1 is accepted.

 Gender of customers equally influences there satisfaction towards the metro Reliability.

4.5.4 Relationship between Gender and Personal Interaction

H0: There is no association between Gender and satisfaction towards Personal Interaction
H1: There is association between Gender and satisfaction towardsPersonal Interaction

Descriptive Statistics

Std. Minimu Maximu

N Mean Deviation m m

PI 202 4.0644 .31673 3.50 4.75

Gender 202 1.569 .4964 1.0 2.0

Test Statistics

PI Gender

Chi-Square 55.921a 3.881b

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Df 4 1

Asymp.
.000 .049
Sig.

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 40.4.

b. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 101.0.

Interpretation

 The significance is < 0.05, H0 is rejected and H1 is accepted.

 Gender of customers equally influences there satisfaction towards the metro Personal
interaction.

4.5.5 Relationship between Gender and Problem Solving

H0: There is no association between Gender and satisfaction towards Problem Solving
H1: There is association between Gender and satisfaction towards Problem Solving

Descriptive Statistics

Std. Minimu Maximu

N Mean Deviation m m

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PS 202 4.0891 .45564 3.33 5.00

Gender 202 1.569 .4964 1.0 2.0

Test Statistics

PS Gender

Chi-Square 72.099a 3.881b

Df 5 1

Asymp.
.000 .049
Sig.

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 33.7.

b. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 101.0.

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Relationship between service quality & customer loyalty

Interpretation

 The significance is < 0.05, H0 is rejected and H1 is accepted.

 Gender of customers equally influences there satisfaction towards the metro Problem
Solving.

4.5.6 Relationship between Gender and Policy

H0: There is no association between Gender and satisfaction towards Policy
H1: There is association between Gender and satisfaction towards Policy

Descriptive Statistics

Std. Minimu Maximu

N Mean Deviation m m

POL 202 4.1423 .21885 3.63 4.50

Gender 202 1.569 .4964 1.0 2.0

Test Statistics

POL Gender

Chi-Square 55.465a 3.881b

Df 5 1

Asymp.
.000 .049
Sig.

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Relationship between service quality & customer loyalty

a. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 33.7.

b. 0 cells (0.0%) have expected

frequencies less than 5. The
minimum expected cell frequency
is 101.0.

Interpretation

 The significance is < 0.05, H0 is rejected and H1 is accepted.

 Gender of customers equally influences there satisfaction towards the metro Policy

CHAPTER 5

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5.1 Findings

• Preponderance of respondents are female i.e , 57% and underground belongs to male
i.e., 43%

• enlightening education majority of respondents are below 10th 32.7% and

minority of respondents are from post graduates and above 10.9%.

• From the Regression of service quality and customer loyalty observed that R square
= 0.603 (Adjusted R square =0.593) indicates that 60.3 percent of the variances on Metro
cash and carry customer loyalty is explained by 5 factors provided in the out put .

• F produce (F=59.574) shows significant impact of factors on Customer loyalty

• Customer loyalty (Y)=constant(a)+b1(PA)+b2(RB)+b3(PI)+b4(PS)+b5(POL)

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=- 8.621+0.996PA+0.326RB-0.179PI+0.317PS+1.586POL

• There is a strong relationship between Physical Aspects and customer loyalty.

• There is a strong relationship between Reliability and customer loyalty.

• There Is no relationship between personal interaction and customer loyalty.

• There is a strong relationship between Problem solving and customer loyalty .

• There is a strong relationship between Policy and customer loyalty.

• The level of education of customers equally influences there satisfaction towards

the metro Physical Aspects

• The level of education of customers equally influences there satisfaction towards

the metro reliability

• The level of education of customers equally influences there satisfaction towards

the metro personal interaction

• The level of education of customers equally influences there satisfaction towards

the metro Problem solving .

• The level of education of customers equally influences there satisfaction towards

the metro policy .

• The level of education of customers equally influences there satisfaction towards

the metro customer loyalty.

• Gender of customers regularly influence there approval towards the metro Physical
Aspects.

• Gender of customers regularly influences there approval towards the metro

Reliability.

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• Gender of customers regularly influences there approval towards the metro
individual communication.

• Gender of customers regularly influences there approval towards the metro

difficulty solving.

• Gender of customers regularly influences there approval towards the metro Policy.

• Gender of customers regularly influence there approval towards the metro Customer
loyalty.

5.2 Suggestions

From the findings of the research the following suggestions and recommendations can be
made.

• The individual communication is required from manager with connect and staff
and additional among them and the clients. As a common of the consumers are shop
owners , they require individual communication with the connections to decide on sales
promotions, offer etc.

• Employee’s behaviour need to builds confidence in customers in the store.

• While install the manufactured goods at customer’s home, workers should always
give advises carefully how to use the product as well as about the warranty program.

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• Employees in this Metro should be again and again well-mannered with clients.

• Workers of in this Metro shall treat clients politely on the telephone.

• Income and interactions goods which have harms all through the guarantee period
need to be experimental in to with the are to avoid complaint and make happy the
purchaser supplies.

• Worker must be show honest concentration in solve the customer’s problem.

5.3 Conclusion

This study suggest a number of specialized suggestion for metro cash and carry and their
managers in metro. Firstly, it has acknowledged the suitable dimension scale of trade service
quality in Metro cash and carry and established the important pressure of
retail repair quality size on customer loyalty. Secondly, Physical Aspects, Policy and Problem
Solving are three key factors that express the strongest impact on Customer Loyalty in Metro
cash and carry.

BIBLIOGRAPHY

 Marketing management : Philip Kotlar

 Wikipedia
 Relationship between service quality and Customer Loyalty
 www.metro.co.in

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Questioner

Relationship betweenthe Service Quality And Customer Loyalty In METRO

Store

CUSTOMER NAME: - CRD NUM:-

GENDER: - AGE:-

ADDRESS: -INCOME:-

EDUCATION: - MOBILE:-

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Give your rating as a based on (1 = strongly disagree, 2 = somewhat disagree, 3 = neither agree
nor disagree, 4 = somewhat agree, 5 = strongly agree)

Physical Aspects

Reliability

1 This Metro has modern-looking equipment.

2 Materials associated with this Metro’ service (such as shopping bags, cata logs , or
statements) are visually appealing.
3 The Metro layout makes it easy for customers to find what they need.
4 Metro staff uniform is neat and polite
Personal interaction

8 The behaviour of employees in this Metro builds confidence in customers

9 When installing the product at your home, employees always give advises carefully how
to use the product as well as about the warranty program.

5 When Metro promises to do something, it will do so (e.g.: delivery, repair, exchange,

return, refund…)
6 Products are always available for customer' needs
7 Metro insists on error-free sales transactions.
10 Employees in this Metro are consistently courteous with customers
11 Employees in this Metro treat customers courteously on the telephone

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Problem Solving

12 Metro willingly handles returns and exchanges products which have problems during the
warranty period.

13 When a customer has a problem, Metro always shows a sincere interest in solving it.

14 Employees are dedicated in solving customer's complaints

Policy

15 Employees of the Metro are always interested in customers’ individual needs

16 The Metro provides plenty of convenient parking and free parking for customers
17 Many attractive promotions are usually offered in the Metro
18 This Metro has operating hours convenient to all their customers
19 Metro accepts most major credit cards
20 The Metro offers free service for transport and installing product at customer's home
with any distance.
21 The sale forms of Metro are quite diverse such as direct sales, online, over the phone...

22 Metro employees, who come to your home to install items, always carry full other
complement products in order to best serve the needs of customers
(eg, cables, wires, bracket ...)

Customer loyalty

23 If there is new chance, I will choose this Metro.

24 If next time I will go to Metro, my intention to choose this,
25 The possibility for me to recommend the Metro.

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