CHAPTER 3 RESEARCH METHODOLOGY

Transcription

1 CHAPTER 3 RESEARCH METHODOLOGY In the present scenario of rapidly changing social and cultural values in Indian society, where income levels and consequently the disposable income of people is rising continuously, life style and buying behavior of people are experiencing immense changes. There has been a change in shopping behavior in urban India over the past few years, with people looking for convenience, leisure and better services. Today consumers want everything under one roof and a wider choice of products. They look for speed and efficiency in shopping. The Indian consumer has more options than ever before, and he/she exerts their power of knowledge very well. These changes have made the retail sector evolve, grow and emerge as a giant sector contributing heavily to the Indian economy. In this study, an effort has been made to explore the reasons and factors affecting the food retail sector in India, challenges faced by it and also the vast opportunities in the field of CRM that lie ahead of it in the years to come. 3.1 Objectives of the Research Under the present circumstances, it was felt there was a need to evaluate the present state of food retailing in India. Moreover organized retail industry is a new way of shopping and is changing the buying behavior of consumer in India. Today when organized retailing is growing at a frenetic pace in the country a lot of work has been done on its growth in India, some of which has been discussed in the literature review section. Keeping in mind these situations, a research has been conducted in light of following objectives: To investigate customer relationship management initiatives by various food retail giants in New Delhi and nearby areas and analyze benefits accrued from customer relationship management initiatives to consumer and society with a long term perspective. To examine the CRM policies adopted by food retail organizations. To identify the challenges and problems faced by food retail giants in implementing CRM strategies and its effects in making food retail sector globally competitive. 3.2 Need of the study As Indian economy is developing at a rapid rate, retail sector is also growing rapidly in India and contributing towards generation of employment, development of infrastructure, and organizing the traditional markets in the country. But inspite of the rapid rate of growth, retail industry is in its nascent stage in India. If we look at its contribution considering the overall size and potential of Indian market with such a huge population as consumer base, there is immense potential of growth in the retail sector, corporate giants like Bharti, Reliance, Birla, Tatas and Rahejas have already entered and others are planning to enter in a big way. Entry of these giants would revolutionize the growth of retail sector in India. Thus the sector is in a very critical stage of its growth and development in India. As the technology is bringing radical changes to how people shop, it is becoming a piece in a larger, more connected customer experience. The study is done

2 to understand how this transition affects retailers thinking to innovate and re-think their operating models in different ways to go along with globalization trends. An effort has been made in this study to analyze this transformation in the retail sector in light of the CRM variables and to predict the future scope of retail. 3.3 Research Design Research design is a blueprint of research. It can be compared with the plan of a house, which lays down the methods and procedure for the collection of information and its measurement and analysis with a view to arriving at certain meaningful conclusions at the end of proposed study. Before selecting the research design, researcher has to take proper care to deal with two issues. First, it must answer the research question and second, the result of the study can be generalized. Research design carries an important influence on the reliability of the results attained. It therefore provides a solid base for the whole research. It is needed due to the fact that it allows for the smooth working of the many research operations. This makes the research as effective as possible by providing maximum information with minimum spending of effort, money and time. The design helps the investigator to organize his ideas, which helps to recognize and fix his faults, if any. In a good research design, all the components go together with each other in a coherent way. The theoretical and conceptual framework must with the research goals and purposes. In the same way, the data gathering method must fit with the research purposes, conceptual and theoretical framework and method of data analysis. A descriptive study is one in which information is collected without changing the environment (i.e., nothing is manipulated). Sometimes these are referred to as correlational or observational studies. Descriptive studies are usually the best methods for collecting information that will demonstrate relationships and describe the world as it exists. These types of studies are often done before an experiment to know what specific things to manipulate and include in an experiment. For this research descriptive study has been done. Bickman and Rog (1998) suggest that descriptive studies can answer questions such as what is or what was and Experiments can typically answer why or how. Research Design of the Thesis: 1. In this research work, descriptive research will be used to study the various existing strategies for CRM development. 2. Surveys will be done (Questionnaire and Interview Method) of the selected retail outlets for the collection of primary data related to the various attributes of CRM. 3. Stratified Random Sampling will be done for the categorization of data. 4. Tabular Representation of data through Frequency tables and Histograms. 5. Use of Statistical Techniques for checking the reliability of data.

3 6. Use of SPSS software for the analysis of data and interpretation of results. 3.4 Hypothesis Based on literature review, expert interviews and pilot study conducted by the researcher, the following hypotheses have been formulated: Hypothesis No. 1: HO: There is no significant difference between gender of respondents and their opinion about most preferred company in CRM implementation. HA: There is significant difference between gender of respondents and their opinion about most preferred company in CRM implementation. Hypothesis No. 2: HO: There is no significant difference between age of respondents and their opinion about most preferred company in CRM implementation. HA: There is significant difference between age of respondents and their opinion about most preferred company in CRM implementation. Hypothesis No. 3: HO: There is no significant difference between annual income of respondents and opinion about most preferred company in CRM implementation. HA: There is significant difference between annual income of respondents and their opinion about most preferred company in CRM implementation. Hypothesis No. 4: HO: There is no significant difference between education of respondents and their opinion about most preferred company in CRM implementation. HA: There is significant difference between education of respondents and their opinion about most preferred company in CRM implementation. 3.5 Selection of sample study organizations

4 To measure the impact of CRM in retail outlets which is the core purpose of the present study, primary data, was collected through structured questionnaires from consumers at the premises of retail outlets and through interview schedules from the managers of retail outlets. The product categories chosen for the study is: Food and grocery, which is present across common retail formats, namely discount stores and super markets. The choice of above categories was guided by the consideration that they contribute maximum towards the retail purchase and are widely sold across both organized and unorganized retail outlets. It should be noted that as the population increases, the representative sample size increases at a diminishing rate and remains relatively constant at slightly more than 380 cases as per the study done by Robert V. Krejcie and Daryle W. Morgan, Surveys were conducted over the retailers and consumers present in the New Delhi and nearby areas. Research aimed at 500 respondents and those, who were familiar with all four retail stores i.e. Big Bazaar, Reliance Fresh, Easy Day and Spencer were considered as the sample size for the study. Total 396 respondents opinion were recorded and analyzed in this study. Demography of Respondents Table 3.1 Age of Respondents with gender bifurcations Age of Respondents Gender of Respondents Total Male Female Above Total

5 Number of Respondents Interpretation: The survey shows that out of 396 respondents, 76 (19%) respondents were of age group between 18 to 25 years, 97 (24%) respondents were of age group between 26 to 35 years, 157 (40%) respondents were of age group between 36 to 45 years and 50 (13%) respondents were of age group between 46 to 55 years and 16 (4%) respondents were of above 55 years. Table 3.2 Marital status of Respondents as per gender bifurcations Marital Status Gender of Respondents Total Male Female Single / Unmarried Married Others Total

6 Number of Respondents Interpretation: The survey shows that out of 396 respondents, 106 (27%) respondents are single/unmarried, 256 (65%) respondents are married and 36 (9%) respondents come in others category. Table 3.3 Total Annual Household Income of Respondents as per gender bifurcations Total Annual Household Income Gender of Respondents Male Female Total Less than & Above Total

7 Number of Respondents Interpretation: The survey shows that out of 396 respondents, 16 (4%) respondents comes under the category of annual household income less than Rs , 117 (29.5%) respondents comes under the category of annual household income between Rs Rs , 155 (39.1%) respondents comes under the category of annual household income between Rs Rs , 108 (27.2) respondents comes under the category of annual household income between Rs and above Table 3.4 Education Level of Respondents as per Gender bifurcations Education Gender of Respondents Total Male Female UG PG Others Total

8 Number of Respondents Interpretation: The survey shows that out of 396 respondents 200 (51%) respondents are undergraduate 139(35%) respondents are postgraduate and 57 (14%) comes in others category of education level. Table 3.5 Occupation status of Respondents as per Gender bifurcations Occupation Gender of Respondents Total Male Female Govt. Service Private Job Trade/ Business Retired / Pensioner Students Total

9 Number of Respondents Interpretation: The survey shows that out of 396 respondents 55 (14%) respondents were in government services, 169 (43%) respondents were in private job, 45(11%) respondents were in trade/business, 43(11%) respondents are retired/pensioner and 84(21%) respondents were students. 3.6 Overview of Selected Retail Outlets BIG BAZAAR Big Bazaar comes under the banner Pantaloon Retail (India) Ltd. (A segment of Kishore Biyani, Future Group of Companies) India. Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India's leading business houses with multiple businesses spanning across the consumption space. Retail forms the core business activity of Future Group. Its group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in over 71 cities and towns and 65 rural locations across India. The group owns several leading formats including Pantaloons, Big Bazaar, Food Bazaar, Home Town and, ezone Central. Future Group believes in developing deeper insights on Indian consumers and building businesses based on Indian innovative ideas, as espoused in the group's core value of 'Indianness'. The group's corporate credo is, 'Rewrite rules, Retain values'. FutureBazaar.com is the e-commerce arm of the Future Group. Future Bazaar provides an integrated shopping website where consumers can buy products from flagship stores including ezone, Pantaloons and Big Bazaar online and get home delivery of products. Future Bazaar delivers across more than 1500 cities and towns in India covering 16,000 pin codes. Future Bazaar carries genuine products and offers manufacturer's warranty (as opposed to Seller's warranty) which most other sites offer. Future Bazaar offers products where the complete

10 supply chain is managed by Future Group entities unlike other sites that are marketplaces. By the virtue of being a part of Future Group, Future Bazaar is able to offer a wide range of genuine products at very competitive prices, confidence of buying from a trusted source and the convenience of returning in physical stores. Big Bazaar is not just another hypermarket. It caters to every need of Indian family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise Indian consumer. Big Bazaar has 133 outlets across the country. Pantaloons are among India's largest chains of fashion stores. Pantaloons Fresh Fashion, with its focus on 'fresh look, feel and attitude' offers, trendy and hip collections that are in sync with the hopes and aspirations of discerning young and 'young-at-heart' consumers. All stores have a wide variety of categories like casual wear, ethnic wear, formalwear, party wear and sportswear for Men, Women and Kids. ezone, with the catch phrase 'experience electronics' is an experience led lifestyle format that brings together the best in national and international consumer electronic and durables brands in a family-centric environment. The Liberation Zone offers personal products like computers, laptops, handy cams, MP3 players and mobile phones. While entertainment products such as Plasma / LCD, Flat TV's, Home Theatre systems, DVD players, and Stereo systems are displayed in the Experience Zone. And in the Home Zone segment, one gets to pick electronic goods of his or her choice including Refrigerators, Air Conditioners, washing machines and Microwave ovens among other kitchen related appliances. Website: support@futurebazaar.com, Address: Knowledge House, 2nd Floor, Shyam Nagar, Off Jogeshwari Vikhroli Link Road, Jogeshwari - East, Mumbai Population considered for the research work As per the information gathered from the customer care department of the retail outlets, the tentative number of customers visiting the outlet per day is Addresses of Big Bazaar in New Delhi and nearby areas where research is conducted. (Total 8 Big Bazaars outlets were selected) Big Bazaar :: Shahdara (New Delhi) Address : Funcity mall, Plot No. 29 & 31, CBD Shahdara, Karkardooma Court, opp - Surajmal Vihar - Pincode : ,State : New Delhi Phone : / 24 Big Bazaar :: Inderlok (New Delhi) Address : Parsavnath Metro Mall, DMRC Station, Inderlok, New Delhi Pincode : , State : New Delhi Phone :

11 Big Bazaar :: Vasant Kunj (New Delhi) Address : Vasant Square Mall, Plot.No.A, Community Center, Sector B, Pocket - 5, Vasant Kunj, Pincode : , State : New Delhi Phone : / 789 Big Bazaar :: Raja Garden (New Delhi) Address : West Gate Mall, Shivaji Place, Raja Garden, Ring Road, Pincode : State : New Delhi Phone : Big Bazaar :: Wazirpur (New Delhi) Address : Netaji Shubhash Place, Metro station, Ansal MGF Metro Plaza, Wazirpur Pincode : , State : New Delhi Phone : Big Bazaar :: Noida Address : The Great India Place, Entertainment City, Lower basement, Sector 38 A, Near Atta Market, Noida, Pincode : , State : Uttar Pradesh Phone : / 001 Big Bazaar :: Ghaziabad Address : East Delhi Mall (EDM), Plot No 1, Kaushambhi (Anand Vihar), Ghaziabad Pincode : , State : Uttar Pradesh Phone : Big Bazaar :: Indirapuram (Ghaziabad) Address : Aditya Mall, Plot no.3, Vaibhav Khand, Indirapuram, Ghaziabad Pincode : , State : Uttar Pradesh Phone : / EASYDAY Easyday is an Indian retail brand that runs chains of consumer retail departmental store. The brand is wholly owned by Bharti Enterprises Limited and is operated by its subsidiary, Bharti Retail Limited, which is headquartered in New Delhi. The technical and management support for the brand is provided by Arkansas, United States based Wal-Mart Stores, Inc, which is the largest retailer in the world. Bharti Enterprises announced its foray into retail in February 2007 and the first store was opened in Punjab in April Easy day presently has 220 stores across 13 states. In its first phase of operations, Bharti Retail has opened 59 Easy Day stores in Punjab, Haryana, Rajasthan, Uttar Pradesh and New Delhi. In addition, it also has launched three compact hyper stores called Easy Day Market in Punjab. The company has deliberately focused on north India in its first phase of operations in an effort to consolidate presence in one market, before expanding to another region. The Easy Day stores source fresh fruits and vegetables from Bharti-

12 Wal-Mart. In an interesting HR innovation the stores plan to tap workforce from the likes of cart vendors, housewives and retired personnel, by offering flexi-hour work schedules. Such groups of persons will also be enrolled for structured training modules at the Bharti Retail Academy. Future Group, that owns and operate Big Bazaar combined retail operations with Easyday in May The merger has created one of India's biggest retail chains with more than 570 stores in 243 cities in India. There are three kinds of format stores operated by Bharti Retail, all of those have the word Easyday in their tag name. The standard neighborhood stores are called Easyday and have their presence in over 190 locations; the compact hypermarkets are termed Easyday Market, which are mid-sized stores and function in 22 marts; and large hypermarket style stores are named Easy Day Hyper, with just one store so far. The general term used for all these stores, irrespective of the store format, is Easy Day. The first and the only Easyday Hyper was launched in Mumbai in September Population considered for the research work As per the information gathered from the customer care department of the retail outlet in Delhi and nearby areas, the tentative number of customers visiting the outlet per day is Addresses of Easyday in Delhi and nearby areas where research is conducted. (Total 14 Easy Day outlets were selected) Easyday (Ghaziabad) Address :- Mahagun Mall, Sec-3, Vaishali, Ghaziabad Easyday (Dwarka) Address:- P No-11, Grd Flr, Ramphal Chowk, Sec-7, Dwarka, Delhi Easyday (Janakpuri) Address:- C-3/12, C-BLK, Janak Puri, Delhi Easyday (Shanti Vihar) Address:- Shop No-2, Opp Geetanjali Apt, Shanti Vihar, Karkardooma, Delhi Easyday (Noida) Address:- Shopprix Mall, Noida, Noida Easyday (Vikas Puri) Address: F-1/123, Vikas Puri, Delhi Easyday ( Prashant Vihar) Address:- Shop No C-2/8, Sec-14, Prashant Vihar, Delhi Easyday (Kirti Nagar) Address:- L 29, Ramesh NGR, Kirti Nagar, Delhi

13 Easyday (Jsanak Puri) Address:- B 3/178, GRD FLR, Opp Cafe Coffee Day, Janak Puri, Delhi Easyday (Paschim Vihar) Address:- A-3/8, Grd Flr, Nr Jwala Heri Mkt, Paschim Vihar, Delhi Easyday (Ghaziabad) Address:- Jaipuria Mall, Ahinsa Khand-2, Indirapuram, Ghaziabad Easyday (Faridabad) Address:- Sco-25, Hooda Mkt, Faridabad Sector-16, Faridabad Easyday( Mansarovar Garden) Address:- Shop No F-300, Grd Flr, F-Blk, Mansarover Garden, Delhi Easyday (Vasundhara) Address:- Vasundhara, Sec-13, Ghaziabad, Ghaziabad SPENCER Spencer s Retail Limited is a multi-format food-first retailer providing a wide range of quality products to customers - well-travelled citizens of the world, looking out for authentic flavors and experiences in a fun-filled shopping environment. Its brand positioning Makes Fine Living Affordable embodies this approach, delighting shoppers with the best products and services that enable a fine living at reasonable prices while providing them with a warm, friendly and knowledgeable retail environment. Part of the Rs 15,500 cr. RPG Group, they run about 200 stores (including about 30 large format stores) across 35 cities in India, employing more than 7,000 people. As one of the earliest entrants in the retail space in India, they have been instrumental in introducing Indian consumers to the concept of organized retailing, becoming the country s first grocery chain back in 1920, and offering the joys of hypermarket shopping in A food first retailer we offer both fresh and packaged foods as well as groceries. They also have a wide selection of electronics and electrical equipment, home and office essentials, garments and fashion accessories, toys, and personal care. The pioneer in organized food retailing in India, the modern-day Spencer s started operations back in the early 90s, in South India. They run more than 200 stores across 35 cities in India. Currently, they offer customers two retail store formats: Convenience stores, called Spencer s and Hypermarkets, called Spencer s hyper Spencer's are neighborhood stores that cater to the daily and weekly top-up shopping needs of consumers. Ranging from 1,500 to 15,000 sq. ft. in size, they stock, at minimum, an assortment of fruits and vegetables, food and non-food Fast Moving Consumer Goods, staples and frozen foods. The larger of these stores, having a floor area of more than 10,000 sq ft sometimes offer a

14 selected range of baked, chilled and frozen foods; personal and home care products; baby care; basic apparels and electronics and electrical. Spencer s hyper are destinations for more than just shopping. Country and theme festivals, the Spencer s Chef Corner with master chefs showing you how to prepare exotic dishes, Modern Menu our in-store food court, wine or cheese tasting sessions there s always something extra happening at a Spencer s hyper. Private Brands in Spencer s offer a wide range of products from food, personal care, fashion to home utility items. Rice, pulses, whole spices, dry fruits and nuts, sauces, instant noodles, breakfast cereals, honey, breads, beverage, wafers, pickles, jams and cookies- to name a few in their food range. While personal care range covers face wipes, tissues, baby needs, hand wash etc. Detergents, dish wash, toilet cleaners, floor cleaners support the home needs. Fruits and Vegetable, another category where their Private Brand Spencer s Nature s best offers you freshly packed greens which include some select exotic herbs and aromatic ingredients. All their private brand products are conveniently priced and come with a promise of great quality. All these brands and products are available in all stores. Population considered for the research work As per the information gathered from the customer care department of the retail outlet, the tentative number of customers visiting the outlet per day is Addresses of Spencer Hyper in Delhi and nearby areas which are selected for research work. (Total 9 Spencer Outlets were selected) Spencer's Neighborhood Store: Indirapuram Address: LGS 43,45,48,39 Jaipuria Sunrise plaza, Plot 12 A, Ahinsa Khand, Indirapuram Ghaziabad Ph: Spencer's Neighborhood Store : Noida Address: Shopprix Mall-Noida Sec-61, Gautam Budh Nagar, U.P. Ph: Exclusive outlets of BHPC DLF Saket, Shop no- 136 Ground Floor DLF Place Saket New Delhi Ph: /243 Delhi Rajouri Shop No. F-129, Rajouri Garden Main Market, New Delhi Ph Delhi Gurgaon Shop no- F-124, Ambience Mall, Ambience Island, NH 8, Gurgaon Ph /90

15 Delhi Noida Shop No. 134, First Floor, Great India Place, Sec 38 A, Noida Ph Delhi Rohini Shop no- GB-07 Metro walk Rohini New Delhi Ph / Delhi Laxmi Nagar Shop No. G-117/118 Laxmi Nagar Ph Delhi Faridabad, G-16,Ground Floor, Crown Interiorz Mall, Faridabad Haryana Ph / RELIANCE FRESH Reliance Fresh works under Reliance Retail Ltd, a segment owned and headed by Mukesh Ambani, is the convenience store format which forms part of the retail business of Reliance Industries of India. Reliance plans to invest in excess of 250 billion in the next 4 years in their retail division. The company already has 1691 Reliance Fresh outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice, bars and dairy products. Reliance has entered into this segment by opening new retail stores at Hyderabad on 3 November Reliance invest heavily in retail division and plans to begin retail stores in 784 cities across India. Reliance Fresh recently (24th Jan, 2007) opened 12 Fresh outlets in Chennai increasing its total store count to 40. Reliance is still testing its retail concepts by controlled entry beginning in the southern states. info@ril.com Website: Corporate Office: Reliance Industries Limited Makers Chambers - IV, Nariman Point, Mumbai India. Tel : Registered Office: Reliance Industries Limited Makers Chambers - IV, Nariman Point, Mumbai India. Tel :

16 Population considered for the research work As per the information gathered from the customer care department of the retail outlet, the tentative number of customers visiting the outlet per day is Addresses of Reliance Fresh in Delhi and nearby areas which are selected for research work. (Total 7 Reliance Fresh Outlets were selected) Reliance Fresh ( Model Town) Delhi Address:F-14/63, Near McDonald's, Opposite to the Great Wall restaurant, Model Town II, New Delhi. Phone: Reliance Fresh (Pitampura )Delhi Address: Reliance fresh limited, Chander Lok, Phone: Reliance Fresh (Lajpat Nagar )Delhi Kalka Devi Marg, Dayanand Colony, Lajpat Nagar, New Delhi, Delhi (state) Ph: Reliance Fresh (Govindpuri )Delhi Tughlakabad Extension, Govindpuri, New Delhi, Delhi (state) Reliance Fresh (Safdarjung Enclave) )Delhi CH Jhandu Singh Marg, Safdarjung Enclave, New Delhi Reliance Fresh (Kirti Nagar )Delhi Kirti Nagar, New Delhi Ph: Reliance Fresh (Shadara )Delhi Maujpur Main Rd, Maujpur, Shahdara, Delhi

17 3.7 Instrument Development Customer Relationship Management Framework Operational Definitions Retail - Retail comes from the Old French word tailler, which means "to cut off, clip, pare, divide" in terms of tailoring (1365). It was first recorded as a noun with the meaning of a "sale in small quantities" in 1433 (from the Middle French retail, "piece cut off, shred, scrap, paring"). Like in French, the word retail in both Dutch and German also refers to the sale of small quantities of items. CRM - Customer Relationship Management (CRM) is a system for managing a company s interactions with current and future customers. It involves using technology to organize, automate and synchronize sales, marketing, customer service, and technical support. Organized Retailing -Organized retailing, in India, refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the publicly traded supermarkets, corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. 3.8 Questionnaire Administration The research objectives were translated into hypothesis, which were then defined as relationships of guiding variables. The guided variables were further divided into micro variables and translated into specific questions or statements. On likert type scale the respondents are asked to express their position on a scale, which has two extremes. Here 5 point likert scale (1-5) was used starting from strongly disagree to strongly agree as two extremes of likert scale, which have been divided in 45 variables of CRM for measurement. To convey the intent quickly, question description had been kept short and precise. In order to study factors that bring about customer relationship management, preliminary questionnaire consisting of 45 variables of CRM was developed by going through the review of literature and study based on CRM model given by institute of direct marketing (2002) CRM implementation elements (CRM model) include 10 broad elements which can be further divided into 45 variables. Section I - Food Brand Familiarity, Reputation & Cognition Section 2 - Customer Relationship Management Element Investment (Retail Outlet Employees) Intercourse (Employees traits)

18 Suitability (Serving customer acc to their culture) Value (Creating long term value) Contacts Imagination (Understanding Customer s Imagination) Technology (Applying technology) Intermediation (Catering customer after sale) These broad categories can be further divided into sub categories. To identify the important attributes, the questionnaires were pre-tested by interviewing 100 respondents. This exercise was followed by editing where the problems identified during the pretesting stage were rectified. After reviewing the pre-tested questionnaire it was decided to confine the research to 45 variables. The components in the questionnaires were fine tuned keeping in view the experience the research scholar gained while conducting the pilot survey. Pilot Study Pilot, or feasibility study, is a small experiment designed to test logistics and gather information prior to a larger study, in order to improve the latter s quality and efficiency. A pilot study can reveal deficiencies in the design of a proposed experiment or procedure and these can then be addressed before time and resources are expended on large scale studies. A good research strategy requires careful planning and a pilot study will often be a part of this strategy. A pilot study is normally small in comparison with the main experiment and therefore can provide only limited information on the sources and magnitude of variation of response measures. For This research work, pilot study is conducted on 100 consumers to find out the feasibility and importance of CRM variables used in the questionnaire. Expert Interview If we need lots of in-depth or technical information in a short period of time, consider engaging an expert to supplement your primary research. Others may have already done research relevant to your project. Experts can help us to learn about the history and context of a particular community or topic, understand the regulations that might affect design and implementation of solutions, or provide you with information about new or developing technologies. For this research work, experts are the Managers of different retail outlets who have ample amount of knowledge regarding CRM and its implementation part. They are the one who are practically aware of various limitations and challenges in effective implementation of CRM. These are the questions asked to the managers of four different retail outlets-

19 Q1.What types of Customer Relationship Management software is used by your organization. Q2. Are you using standardized CRM software available in market? Yes or No, If No, Then what to look for in a Customized CRM package? Q3. On which element your organization focuses while implementing CRM practices? Q4. What are the Challenges / problems faced by your organization in CRM Implementation? Q5. What are CRM trends that your organization is planning to use in future? 3.9 Data Analysis Design Sampling technique applied for retail outlets The core objective of the study was to analyze in the impact of CRM in retail outlets, for this purpose the organized retail outlets were selected through stratified random sampling technique on the basis of their type and format in New Delhi and nearby areas. Out of 22 functional outlets of Big Bazaar at the time of data collection, 8 outlets were selected. For Easy Day, 14 outlets were selected out of 31, for Reliance Fresh 7 outlets were selected out of 13 and for Spencer 9 outlets were selected out of 17. The organized retail outlets selected were considered as clusters. In this manner 38 study clusters were generated as shown in the given table 3.6 Table 3.6 Sample Size and Distribution of Retail Outlets Retail outlets Number of sampled organized clusters Big Bazaar 8 Easy Day 14 Reliance Fresh 7 Spencer 9 Total sample 38 Sampling Technique applied for consumers As consumers are a major stakeholder category in the expansion of organized retail, a consumer survey was planned as an integral part of the present impact assessment study. To assess the impact of organized retail network on consumers, exit interviews were conducted over the consumers at the sampled organized retail outlets.

20 Exit interviews were preferred over household surveys as it is difficult to locate households who have made purchases from the sampled organized clusters. Moreover, there could be a poor or inaccurate recall if the actual incidence of purchase occurred long before the date of the interview. On the basis of past literature and opinion of industry experts it is known that organized retailers pose a serious challenge to the unorganized retailers by providing a better retail performance through applying better CRM techniques. This leads to customer satisfaction which in turn improves their image in the society and makes them a preferred shopping destination. As more and more customers start preferring them, a societal transformation takes place that causes both the volume of sales and trust of unorganized retailers to decrease. The method of study involves collecting information from the primary sources of information through questionnaire. The qualitative data has been collected using interviewing and observation techniques; the quantitative data has been collected using questionnaire technique. Statistical software for social sciences (SPSS) has been used for various statistical analysis. Data collection The methodology involves using both primary data and secondary data. The approach adopted in finalizing the primary research recognized the exploratory nature of this research, and the need to develop a high level understanding of the overall significance and relevance of the retail sector to understand and assess the opportunities and challenges that are ahead. A qualitative approach based on personal interviews was adopted as the most suitable approach. Separate structured questionnaires/interview schedules were developed for retailers and customers in addition to multiple choice questions, open ended questions were also included to facilitate unrestrained feedback and input from the interviewees without limiting the options for their answers. A copy of the questionnaire and interview questions addressed to the interviewees is attached in appendices. In order to improve upon the questionnaire, they were pre-tested in each category. This exercise proved fruitful as it reviewed the purpose of each question in detail and its relevance to the study. The possibility of getting information was also explored. On the basis of the feedback received, some question were removed and reworded to improve the understanding of the questionnaire leading to the final sets of questions which were used for interviewing the prospects. After the questionnaires and interview schedules were finalized, the next step was to conduct survey of the customers and managers of retail outlet. For this distribution of questionnaire, the initial approach was made through the research scholar s contacts, accompanied by a brief introduction and summary of the research objective. In addition to primary data, secondary data was also collected through national/international journals, magazines, company websites, database, government gadgets and various research reports etc.