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A RESEARCH ON SUPER-STORE BUSINESS
 IN BANGLADESH – CONCENTRATION
    AREA INCLUDES THE FACTORS
     FACILITATES ITS EXPANSION
A RESEARCH ON SUPER-STORE BUSINESS IN BANGLADESH
   – CONCENTRATION AREA INCLUDES THE FACTORS
            FACILITATES ITS EXPANSION




                      Prepared for:
                     Mr. Oli Ahad Thakur
                      - Senior Lecturer




                       Prepared by:
     Name                                          ID
     Ehmed Kushal Imtiaz                       043200020
     K. M. Monsurul Aziz                       043200082
     Mohammad Abdullah Zubair Bhuiayn          043200098

                        Semester – 9th

          Program - Bachelor of Business Administration




                    Eastern University
       House # 15/2, Road # 3, Dhanmondi R/A, Dhaka-1205




                    October 8, 2007
October 8, 2007


Mr. Oli Ahad Thakur
Senior Lecturer
Faculty of Business Administration
Eastern University


Dear Sir:
As a part of our BUS 330 course curriculum, we are pleased to submit you this
research report. In our regular class, you have orally authorized us to do this report
on a particular topic.


The research topic has selected by the group members and the topic is really
interesting. The research topic is - “A research on Super-store business in
Bangladesh – Concentration area includes the factors facilitate its expansion”.
Super-store business in Bangladesh is in the growth stage and very few research
works have been conducted in this sector. For this reason, we chose this area as
our research field. Our research is an exploratory one. This research has been
conducted due to enhance the reader’s knowledge.


Kindly accept our report and oblige us thereby. Thank you for choosing us for
working on this topic.



Yours’ sincerely,

Members of the group



Ehmed Kushal Imtiaz                           K. M. Monsurul Aziz



               Mohammad Abdullah Zubair Bhuiayn
Table of Contents




Title                                            Page no.

Executive Summary                                   V
1.0 Introduction                                    01
   1.1 Literature Review (Relevant Background)      02
   1.2 Objective of the study                      04
2.0 Research Methodology                            05
3.0 Findings of the study                           10
   3.1 Discussion on findings and observations      13
4.0 Limitation of the study                         15
5.0 Suggestions for further research                15
Appendix
Bibliography
Executive Summary
This research report is a part of BUS 330 course curriculum. The primary
objective of this report is to learn how to conduct a research and write it down in a
formal and specific manner. The secondary objective of this study comes from the
research topic which comprises of three issues:

   1. Identify the factors that are most important to consumers in choosing a
      super-store
   2. Find out consumers’ degree of satisfaction with the service provided by the
      existing super-stores and
   3. To get consumers’ impression about the super-store shopping in relation to
      the traditional stores

This is an exploratory research and quota sampling has been used. Total number of
sample is 70. For data analysis, hypothesis testing (with z-test and chi-square) and
regression analysis have been used.

Consumer ranked convenience as first priority while choosing super-store
shopping in relation to the traditional one. Cleanliness and secured environment
were ranked second and third respectively. Chi-square test shows that men and
women are equally aware of brand. Z-test analysis shows that there is significant
opportunity to go for super-store business. Regression analysis produces a vague
result which calls for descriptive research in the future. The analysis of satisfaction
level and importance level shows that if an entrepreneur wants to go for super-
store business, then emphasize on the mentioned factors (lower raked satisfaction
area) along with the most important ones can give the new store a competitive
edge.

Limitations of this study include non availability of sampling frame, respondents’
unwillingness to cooperate and judgmental differences since larger number of
female respondents.

The development of super-store business in Bangladesh is in the growth stage and
very few research works have been conducted regarding super-store. Thus, there is
a huge room for additional study. The utilization of shelf-spaces for a particular
product and its generation of profit volume can be very critical to judge but will
provide very in-depth findings about profitability. Consumers’ shopping pattern is
also a variable of the standard of living and thus, it can be said that the impacts of
super-stores can be a matter of study for sociology and other relevant social
science fields. The super-stores are popularizing more readymade foods in a
convenient way, which can result time saving from cooking and surplus time for
recreation, workplace, fulfillment hobbies, etc.




                                          V
1.0 Introduction
Business world never goes with the word ‘Status Quo’. Business world is dynamic
and business is a never ending process. Ease of access to the information, that is,
the technological innovation engraves its art in every aspect of our life. This is
more relevant for the business world since business closes the gap between the
market place and technology. The more a country implants the technology in its
business, the more it becomes successful. The governments are now lessen their
trade barriers between countries and grab the open market practices. The world
tends to become a global village. This changes the form of business all over the
world and it becomes inevitable. In our society, its impact also has been observed.
The emergence of super-store business in our country gives us the signal to be a
part of the global village.

Technology makes communication easier. Today ease of getting information is
very much affordable as said earlier. Thus, we are exposed to more information.
We are becoming more educated. Now, we can justify more wisely. We do know
what is good for us in a better way. This know-how changes our lifestyles. As we
know differences in consumers’ needs, wants, personalities, attitudes, economic
situation, educational background, personal tastes and social status make our
shopping pattern different and globalization effect shapes our know-how, the
tracking of consumers’ shopping pattern becomes a very complex job. Now
marketers have to consider different issues while satisfying their customers’ needs.
For example, in recent study, it has seen that besides the factors as mentioned
above, the choice of location, buying process, and environment of store also
influence shopping decisions. Today, shopping pattern does not include the buying
only but includes associated aspects of buying, as walking around, window
shopping, location, surroundings, etc.




                                       -1-
1.1 Literature Review (Relevant Background)
The traditional store for grocery shopping can be said as the business (whose sales
and assets are not large enough to influence its environment; Griffin 2002) that
generally offer limited merchandise and provide services mostly by untrained shop
workers. On the other hand “bazar” is a location centric concept where many
sellers gather their limited variety of merchandise (mostly perishable) for sales and
customers required two transact in every point of sale, which means more time
consumption for purchasing full-scale grocery.

The evolution of super-store in the United States and several economical, social,
political, technological and educational changes had complimented to the
revolution of super-store in world-wide. At the same time, developing nations also
felt the shake of it, as a result of globalization, though in limited scale till now. The
mission of this study toward the contributing factors behind change in grocery
shopping will bring clarity to the analyses.

The change in retail formats came from the concept of open salvages, where public
could be let into the stock room and would not create havoc (George Wedd, 1998).
He also focused on those traditional shops which are highly specialized: stationers
sold stationery: greengrocers sold vegetables- so that a shopping trip had to be
carefully planned (George Wedd, 1998).

Two terms appeared as ‘unorganized sector’ (traditional stores) and ‘organized
sector’ (super-stores) and it has been seen as a shift from the first one to the second
one (Simone Tata, 2003). Accordingly to her, ‘organized retail stores are
characterized by large professionally managed format - providing goods and
services that appeal to customers’. She has focused on liberalization, more
spending power (to particular income group), more educated population, and most
importantly, exposed to brands and products through television the development of
‘organized sector’. She also cited that division of joint families giving way to
nuclear families, and the increasing number of working couples also contributed to
the acceptability of super-store shopping. Moreover, convenience shopping is
becoming more demandable by the rising number of two income families (Riche,
1987).

Social and economical factors like, increase in multiple career households (means
more disposable income), and demand for convenience, quality, and time savings
(Doris J. Newton, 2003) made positive correlation to super-store sales. He also
outlined the concept of “one stop shopping” (large scale of requirement
fulfillment; grocery and animal foods, pharmaceutical products, video rentals, and
general merchandise as clothing), which is an attributable factor behind the
success of super-stores. And this success also be expressed in numerical terms, as




                                          -2-
super-stores accounted for over 70 percent of total food store sales and 72 percent
in grocery store sales in 1992 (U.S. Department of Agriculture). Packaging
technology and refrigeration, which provided longer shelf life, led to weekly
versus daily shopping (Levy and Weitz, 1992).

Stock assortment (the combination of different trades and the enrichment of stock
assortment within particular trades ensures economies of scale) and self service
(customers have access to the goods and may inspect them without the mediation
of salespersons and having assembled her requirements from anywhere in the
shop, and pays once only, at the exit) defined as major attributes of super-stores
(W.G. McClelland, 1962).

Hence the main difference from the traditional grocery shops that super-store is
self-service, hassle free food shop and requires one point of sale. But it is clear that
this expanding retail formats give consumers more shopping alternativeness and
also make it more difficult to define market for many of these (Paul little, 2003).
That’s why Johnathan Pearce (2003) contended that for many people, shopping is
an extension of leisure activity not only just an exchange process of buying food
for the table. He also added that super-stores made women easier to leave the
home and go into the work. Otherwise shopping would take much more time.

According to Messinger and Narasimhan (1997) consumers’ choice of retailers is
primarily influenced by assortment, price, and transactional conveniences relating
to shopping time and logistics, and utility or disutility from the shopping
experience. Their empirical examination suggested that greater prevalence of one
stop shopping has been a response to growing demand for time saving
convenience. Messinger and Narasimhan also acknowledged that transportation
and inventory-holding technologies (refrigeration) are prerequisites to one-stop
shopping, which ultimately complemented super-store development. In store
promotion facilities of super-stores are utilized with the hope of increasing sales of
their merchandise through ‘impulse’ buying (Abratt and Goodey, 1990).

The term ‘super-store’ can be said as a store twice as the size of a regular grocery
stores that carries a large assortment of routinely purchased food and non-food
items and offers services such as dry cleaning, post offices, photo finishing, check
cashing, bill paying, lunch counters, car care, and pet care (Kotler and Armstrong
2003). The present format of the stores, which have been focused in this study, is
popular as super-stores/super-shop/super-center in Bangladesh but it matches more
with the definition of super-store except the attribute of low-cost. Though, in
Bangladesh ‘super-store’ erroneously means shopping malls/shopping centers.

[Source: Journal of Business Studies, Vol. XXVI, No. 1, June 2005]




                                         -3-
1.2 Objective of the study
This report has been prepared for the academic purpose. This is a part of BUS 330
course curriculum. The primary objective of this report is to learn how to conduct
a research and write it down in a formal and specific manner. The secondary
objective of this study comes from the research topic which comprises of three
issues:

(1) Identify the factors that are most important to consumers in choosing a super-
store

(2) Find out consumers’ degree of satisfaction with the service provided by the
existing super-stores and

(3) To get consumers’ impression about the super-store shopping in relation to the
traditional stores




                                      -4-
2.0 Research Methodology

This is an exploratory research. This study is not intended to finding any solution
of the problem rather it provides an orientation to the readers by gathering
information on a topic with which he/she has little experience. It provides greater
understanding of a concept rather than providing precise measurement. This
research has been conducted based on primary data collection covering the Dhaka
city area. Considering the time constrain and ease of collecting information
structured questionnaire has been used for collecting the information. It facilitates
this study in several ways: (1) Let the researchers quick access to the necessary
information (2) Make it easy for the respondent to answer (3) answers are in the
form of numerical data (ranking), thus, easy to analyze and interpret (4) let the
researchers to avoid the effect of leading question by giving numerous choices (5)
the questionnaire has been moderated by the instructor which increases the scope
of the covering area. The population of this study covers the individuals who make
their shopping in the super-stores. It is a consumer-focused study and the list of
super-stores shoppers is still not reality (no sampling frame available). For this
reason, quota sampling has been used (non-probability sampling). The control
variables (sampling unit) for sampling are-

(1) Super-store identification: The super-stores, where large numbers of
transactions take place at different point of time in a week, were identified through
observations. Identified points of sales were Agora, Almas Super Shop, Prince
Bazar Limited, Nandan, and Family World.

(2) Day selection: Friday, Monday and Thursday.

(3) Time slot: 11 AM to 12 PM and 4 Pm to 7 PM.

(4) Respondents’ criteria: Likelihood of more than 18 years old for being capable
of independent judgments and at least three items in his/her basket that strengths
the possibility of making transactions. Five respondents were interviewed in two
hours according to the questionnaire to collect required data. Total sample size is
70. Data have been analyzed by using rank order and statistical tools.

Among 70 samples only two errors occur. Both of the errors are response bias.
One is deliberate falsification. Here the respondent gave answer in order to appear
intelligent. The other respondent seemed to misunderstand the question and
unconsciously gave bias answer. No other response errors and administrative
errors occur since the researchers were very cautious. A table given below shows
the steps that the researchers took to protect biasness.




                                        -5-
Errors                                 Steps taken to avoid
  Acquiescence Bias (response bias)            Well-designed questionnaire and
                                           respondents were given enough choices.
    Interviewer Bias (response bias)            Let the respondent to fill up the
                                                 questionnaire by him/her self.
     Auspices Bias (response bias)          The researchers assure the respondent
                                               by saying that this survey will be
                                               conducted only for the academic
                                                            purpose.
Social Desirability Bias (response bias)      No such leading question has been
                                                              added
 Data Processing Error (admin. error)        The researchers took enough time to
                                             record the information. All the group
                                               members record the information
                                                individually then the recorded
                                             information has been checked to one
                                                             another.
 Sample Selection Error (admin. error)       The researchers spot quota sampling
                                                which reduces the likelihood of
                                               occurring sample selection error
                                                          significantly.
    Interviewer Error (admin. error)        Questionnaire had been filled up by the
                                            respondent and the researchers closely
                                                   monitored the responses.
  Interviewer Cheating (admin. error)             Moral and ethical concerns



To discuss the reasons for which people go to super-stores instead of traditional
grocery stores, satisfaction level of current customers and contribution of super-
stores in our shopping behavior, a Focus Group Interview (FGI) has been
conducted on 7th September 2007 (Friday). On that day, there were six people on
the location and the researchers tried to interview those, who are relatively
homogeneous and have similar lifestyles and experiences. The researchers tried to
make sure that every one gets a chance to speak and to ask questions to clarify
topics that have been introduced in the discussion.




                                         -6-
For analyzing data the researchers use two statistical tools. One is simple
regression analysis. For regression analysis, the least-squares method has been
used. Using the criterion of least squares, the researchers can determine whether
one estimating line is a better fit than another. Statisticians have derived two
equations we can use to find the slope and the Y-intercept of the best-fitting
regression line. The first formula calculates the slope:

                              ΣXY – n ⎯X⎯Y
                      b = ------------------------
                              ΣX² - n ⎯X²

       Where,

              b = slope pf the best-fitting estimating line
              X = values of the independent variable (% Income change)
              Y = values of the dependent variable (% change in Expenditure)
             ⎯X = mean of the values of the independent variable
             ⎯Y = mean of the values of the dependent variable
              n = number of data points

The second formula calculates the Y-intercept of the line whose slope we
calculated using the first equation:

                              a = ⎯Y – b⎯X

       Where,
             a = Y- intercept
             b = slope from first equation
            ⎯Y = mean of the values of the dependent variable
            ⎯X = mean of the values of the independent variable

The following formula has been used to calculate the Standard Error of Estimate:



                                              ΣY² - a ΣY – b ΣXY
                              Se =         ----------------------------
                                                     n–2

The standard error of estimate measures the variability of the observed values
around the regression line.




                                         -7-
The following formula has been used to determine Sample Coefficient of
Determination:

                                       a ΣY + b ΣXY – n⎯Y²
                              r² = ----------------------------------
                                           ΣY² - n⎯Y²



Sample Coefficient of Determination (r²) is a measure of the proportion of
variation in Y, the dependent variable (% change in Expenditure), that is explained
by the regression line, that is, by Y’s relationship with the independent variable (%
Income change).



Coefficient of Correlation (r) is just the square root of the coefficient of
determination. Its sign indicates the direction of the relationship between two
variables, direct or inverse.



                              r=               r²




                                         -8-
The second statistical tool that the researchers use in this study is the hypothesis
testing. For hypothesis testing, both the z-test and chi-square test have been used.
The following formula has been used for z-test:

                                  ⎯x – μ
                         z = -----------------------
                                      Se

                Where,

                z = number of standard deviations from the mean of a standard
                          normal probability distribution.

               ⎯x = sample mean
                μ = population mean        σ
                Se = sampling error = ------------
                                          √n
                σ = population standard deviation
                 n = size of sample



For chi-square test, the following formula has been used:

                             (Fo – Fe) ²
                χ² = ∑ ------------------------
                                Fe

       Where,
                χ²= chi-square statistic
                Fo= observed (actual) frequency in the nth cell
                Fe= expected (theoretical) frequency in the nth cell

For chi-square test, the researchers need to calculate the degrees of freedom.
Degrees of Freedom (DOF) refer to the number of values in a sample we can
specify freely once we know something about that sample.

       Here,
                DOF = (number of rows – 1) (number of columns - 1)

All the hypothesis tests have been conducted with a significance level α = 0.05.
The significance level (α) refers to the probability of a Type 1 error. Type 1 error
occurs when we reject the null hypothesis when it is true.




                                             -9-
3.0 Findings of the study
According to the survey, consumers ranked Convenience (in terms of suitable
operating time, adjacent location, one stop household requirements fulfillment,
hassle free environment etc) as first priority for choosing super-store shopping,
which is mostly absent in the traditional option for the similar products.
Consumers ranked Cleanliness as their second criterion for shopping there, which
is very much desired to them but not available in the traditional shopping
environment. Secured environment (where the chances of loosing product, pick
pocket, snatching, unwelcome touching to ladies most probably do not arise)
ranked as their third priority among the eight criteria for choosing this kind of
shopping. Appropriate weight and Higher quality both simultaneously became
fourth priority whereas consumers have chosen product variety as sixth criterion.
Consumer put Responsible price (compared to the facilities offered) in seventh
position in the ranking for choosing this type of shopping. Consumers ranked Easy
to pay (one point of transaction for all shopping, different cards’ acceptability) as
eighth criterion for choosing this type of super-stores.

All the presented data provided pivotal guide for drawing inferences from different
dimensions. Moreover, our observations also explored some emerging realities
from the perspective of change.

Convenience, cleanliness, and secured environment represent the appeal of super-
stores. Price has less important on the buying decision of most respondents, as
reasonable price is the seventh choice of them. Thus, the average income level
people of the metropolis voluntarily deny their access to these super-stores.

We found most of the respondents simultaneously shop from the option not always
to make comparison between them but also for their purchase requirement,
location advantage, and time availability. Moreover, almost 80% of simultaneous
shoppers allocated higher points for the super-stores for overall advantage in
shopping. So it is easily understandable that a group of non-price sensitive buyers
(where reasonable price and easy to pay the 7th & 8th reason to shop in the super-
stores for consumers) most likely the upper middle class & upper class people
already moved their face to super-stores from traditional stores.

Chi-square test result: Calculated value of χ² (0.426) is less than the critical
value of χ² (3.841). Thus, we do not reject the null hypothesis.

Z-test result: The calculated value of z falls within the accepted region as seen in
the picture. There is no enough reason to reject the null hypothesis.




                                       - 10 -
Regression Analysis results: The sample coefficient of determination r² turns out
0.2275. So we can conclude that the variation in the income explains 22.75 percent
of the variation in the expenditure.

Satisfaction level: According to our observation the following factors should be
highlighted if someone wants to open up a new super-store since they got the
lowest satisfaction rating – (1) Convenient public areas i.e. cleansing room [3.43]
(2) Knowledgeable employees [3.43] (3) Handling of return and exchanges [3.46]
(4) Convenient parking [3.46] (5) Store’s commitment to its promises to do
something [3.57]
(6) Store layout for moving around the store [3.6] (7) ‘Right the first time’ service
performance [3.6].

Importance level: According to our observation the following factors should be
considered first when someone trade off between super-stores: (1) Convenience of
location [4.66] (2) Friendly employees [4.46] (3) Large selection of fruits and
vegetables [4.40] (4) Offer several brands of a product [4.34] (5) Fresh fruits and
vegetables [4.31] (6) Convenience of parking [4.29] (7) Speed of the service in the
cash counter [4.06]

Findings of the FGI:

Eight major reasons for which people prefer super-stores:

        Convenience
        Cleanliness
        Secured Environment
        Reasonable Price
        Higher Quality
        Appropriate weight
        Product variety
        Easy to pay




                                       - 11 -
Other findings -

       Though quality is a very subjective mater that is hard to measure and it
       varies from person to person. In this FGI result, among six respondents 3
       consented that product quality was improved in super-stores compared to
       the traditional stores, 2 respondents said it was partially improved and only
       1 respondent said product quality was not improved in the super-stores
       than the traditional stores.

       From the FGI, it is clearly identified that consumers’ impression about the
       price level of most products in these super-stores is slightly higher
       compared to the prices of traditional shopping.

       According to the FGI, 3 said that super-stores were providing improved
       packing for their products compared to the traditional shops. 2 said slightly
       improved packaging and only 1 said similar type of packaging was
       provided to their consumers compared to the traditional stores.


       2 respondents’ impression about the freshness of the super-stores’
       perishable goods were slightly higher compared to the traditional stores, 2
       respondents said it was higher, 2 said it was similar and no one said it was
       lower compared to the traditional stores.

       Among the 6 respondents, 5 said that they were getting some extra or
       additional benefits from this type of super-stores. Mainly, these are price
       discount, free sample, reliable suggestions, parking facility, expiry date
       printed, air conditioned environment and basket/trolley to carry their
       shopping bags and special offer during some festival or sometimes they
       are arranging fruit festival or fish fair. But 1 respondent said that they were
       not getting any extra or additional benefits from the super-stores.

       According to the FGI, 3 respondents strongly agreed that they were able to
       satisfy their all requirements or purposes when they were going to one of
       the super-stores. 2 respondents partially agreed with this and only 1
       strongly disagrees with this statement.

       Among the 6 respondents, 5 respondents were shopping simultaneously
       from super-stores and traditional shops and only 1 were not doing so.




                                       - 12 -
3.1 Discussion on findings and observations
Consumers’ perception about higher quality of products (including perishable
products) is the contribution of neat outlook of products, space allocation for
products, and self-selection facility (which is totally impossible in traditional
option). Additional benefits and fulfillment of all household requirements by
super-stores are incomparable to traditional stores, which ultimately contribution
to the positive image of super-stores. The additional benefits are actually the
application of modern marketing strategies, which represent the emergence of
professional touch at the household shopping sector in Bangladesh. Marketers also
blessed with new opportunities as they can use these super-stores for promotional
campaign in a secured environment, possibility of close interaction with the
consumers, CCTV operation for studying buying behavior in addition to the
survey.

As most of the respondents consented on higher product quality, improved
packaging, higher freshness of perishable goods, availability of additional benefits,
fulfillment most of the household requirement: it seems that the super-stores are
providing more desirable shopping environment.

In case responses on up to date equipment, neatness of salesperson, physical
establishment, sales persons’ problem solving ability and knowledge of their job
are extremely positive. The researchers’ reflection about such response is that, this
type of super-stores is in contemporary state in Bangladesh and still has a new
look. People are overwhelmed of it till now and still feeling it as status symbol,
very different shopping environment; thus people are not yet in a position to
demand more desirable facilities from the super-stores.

The emergence of super-store also exemplifies the threat to small business and
corporate business revolution in Bangladesh. The business once occupied by small
investors like, rice mill, turmeric powder, chili powder, vegetable, fish, meat, etc.
are increasingly coming under corporate umbrella. So the sum of total sales of
many traditional grocery stores becoming the total sales of one super-store. Here
the assurance of higher sales volume in one point of sale means more revenue
generation, which leads to less per unit distribution cost for the
suppliers/distributors. This situation also increases higher bargaining power of
super-stores in demanding supplier credit or large price discounts. The super-stores
also have higher credit worthiness than individuals as those are under corporate
entity. Thus, the super-stores & their suppliers are becoming complementary to
each other. But such situation may result in small farmers’ less bargaining power
for fair price. Large price discounts also contributes to achieving economies of
scale in operation.




                                       - 13 -
Self-selection is one such important attribute of super-stores which provides a
feeling of independence and self-responsibility. This attribute highly support pull
strategy of promotion. Thus it has explored more potential & challenges for the
markets, especially in advertising and packaging. So there is more room for
innovativeness in conceptualizing, and developing advertising and packaging
decisions.

Inventory management is a challenge for large assortment of products especially
for the chance of pilferage. Developing in information technology (IT) eased
inventory management and payment process for large basket shopping, which
encourages the development of super-store in Bangladesh.

In convenience stores one identical benefit for the neighbors is credit facility,
which is replaced by credit card acceptance in super-stores. This situation indicates
to a group of consumer who can exploit this advantage. The present withdrawal of
rickshaws from major roads also limits many customers’ entry to super-stores,
which poses new challenge for the location decision of super-stores. So a
particular target market is going to be shared by rising number of super-stores,
which will result intense competition. Thus, the researchers suggest more
promotional aspects like discount through loyalty cards for retaining consumers to
ensure repetitive purchase.

Chi-square test: Men and women are equally aware of brand. So super-store
owners should consider offering standardized product (branded) in their stores.

Z-test: The overall satisfaction level of the super-store customers is 3.90 out of
five. Thus it can be concluded that there is significant opportunity for other
entrepreneurs to startup the super-store business. They can get substantial
advantages by offering facilities that is absent or partially present in the existing
business. The super-store business is in the growth stage at present.

Regression analysis: This study produces an insignificant relationship between
incomes versus expenditure in super-store shopping. The reason is vague to the
researchers. Since this research is an exploratory one, so this finding calls for
further research.

Satisfaction level & importance level: If an entrepreneur wants to go for super-
store business, then emphasize on the mentioned factors along with the most
important ones can give the new store a competitive edge.




                                       - 14 -
4.0 Limitation of the study
Absence of super-store shopper’s list is the main limitation, for which non-
probability sampling has been used. Respondent’s unwillingness to answer the
question is another limitation. It is also noted that more females than males
responded to the survey. This may be one of the cultural impacts that females are
more familiar with the low involvement product or grocery items. Thus,
judgmental differences because of gender may have reflected in this study.




5.0 Suggestions for further research
The development of super-store business in Bangladesh is in the growth stage and
very few research works have been conducted regarding super-store. Thus, there is
a huge room for additional study. The utilization of shelf-spaces for a particular
product and its generation of profit volume can be very critical to judge but will
provide very in-depth findings about profitability. Consumers’ shopping pattern is
also a variable of the standard of living and thus, it can be said that the impacts of
super-stores can be a matter of study for sociology and other relevant social
science fields. The super-stores are popularizing more readymade foods in a
convenient way, which can result time saving from cooking and surplus time for
recreation, workplace, fulfillment hobbies, etc.




                                        - 15 -
Appendix
Questionnaire 1
Dear Sir/Madam:

I am a student of BBA, Eastern University. I am conducting a research
on the Super store Industry in Bangladesh. All information collected
will be kept confidential and used only for academic purpose. If you
are over 18 years old and a regular customer of retail stores, we would
greatly appreciate it if you complete this questionnaire.


Thank you.
Your gender__

       Male
       Female

What is your age?

        18 - 25
        26 - 35
        36 - 45
        46 - 55
        55 - and over

Please indicate your approximate monthly household income

       Under TK10,000
       TK10,001 - TK20,000
       TK20,001 – TK30,000
       TK30,001 – TK40,000
       TK40,001 – TK50,000
       TK50,000 and over

Please indicate your approximate monthly expenditure on superstore

       TK0 – TK2,000
       TK2,001 – TK5,000
       TK5,001 – TK10,000
       TK10,001 – TK15,000
       TK15,001 – TK20,000
       TK20,000 and over

Please indicate how many times do you visit superstore a month?

       0 to 5
       6 to 10
       11 to 15
       More: ………

Are you a brand loyal?

       Yes
       No
Are you satisfied with the service of super-store currently
operating in the market? Give your opinion as per your
importance level.
                                    Level of importance
                                                        ___1___ ___2___ ___3___ ___4___ ___5___
Stores are well decorated

Materials associated with this store's service
(such as shopping bags, catalogs, or statements)
are visually appealing.

This store has clean, attractive, and convenient
public areas (restrooms, fitting rooms).

The store layout at this store makes it easy for
customers to find what they need.

The store layout at this store makes it easy for
customers to move around the store.

When this store promises to do something by a
certain time, it will do so.

This store performs the service right the first time.

This store has stock available when the
customers want it.

This store insists on error-free sales transactions
and records.

Employees in this store have the knowledge to
answer customers' questions.

Employees in this store are never too busy to
respond to customer's requests.

This store gives customers individual attention.


This store willingly handles returns and
exchanges.

When a customer has a problem, this store
shows a sincere interest in solving it.

Employees of this store are able to handle
customer complaints directly and immediately.
This store offers high quality stock.

This store provides plenty of convenient parking
for customers.

This store has operating hours convenient to all
their customers.

This store accepts most major credit cards.




Please rank the following factors (1 to 8) according to their relative importance while
choosing a super-store:

    1. Convenience _________________

    2. Cleanliness _____________

    3. Secured environment _____________

    4. Reasonable price ________________

    5. Higher quality __________________

    6. Appropriate weight ____________

    7. Product variety ______________

    8. Easy to pay ____________
Questionnaire 2
Dear Sir/Madam:

I am a student of BBA, Eastern University. I am conducting a research
on the Super store Industry in Bangladesh. All information collected
will be kept confidential and used only for academic purpose. If you
are over 18 years old and a regular customer of retail stores, we would
greatly appreciate it if you complete this questionnaire.


Thank you.
Your gender__

       Male
       Female

What is your age?

        18 - 25
        26 - 35
        36 - 45
        46 - 55
        55 - and over

Please indicate your approximate monthly household income

       Under TK10,000
       TK10,001 - TK20,000
       TK20,001 – TK30,000
       TK30,001 – TK40,000
       TK40,001 – TK50,000
       TK50,000 and over

Please indicate your approximate monthly expenditure on superstore

       TK0 – TK2,000
       TK2,001 – TK5,000
       TK5,001 – TK10,000
       TK10,001 – TK15,000
       TK15,001 – TK20,000
       TK20,000 and over

Please indicate how many times do you visit superstore a month?

       0 to 5
       6 to 10
       11 to 15
       More: ………

Are you a brand loyal?

       Yes
       No
Provides nutritional information about products


Wide selection of national (local) brands


Customized product offer

Offers a variety of health and personal care
products (Herbal product)

Large selection of fruits and vegetables




Please rank the following factors (1 to 8) according to their relative importance while
choosing a super-store:

   1. Convenience _________________

   2. Cleanliness _____________

   3. Secured environment _____________

   4. Reasonable price ________________

   5. Higher quality __________________

   6. Appropriate weight ____________

   7. Product variety ______________

   8. Easy to pay ____________
We would like to find out what is most important to you in choosing a superstore. Below are a
number of descriptors about superstores. Please select the answer that best expresses how
important you think the factor is IN SELECTING A SUPERSTORE.
                                                             Level of importance
                                                    ___1___ ___2___ ___3___ ___4___ ___5___
Fast checkout (Speed of the service in cash
counter)

Exclusive food section


Low priced specials (discount offers)


Close to where you live (location)


Offers coupons in newspaper ads


Courteous, friendly employees


Offers generic products (common food i.e. rice)


Financial support (installment payment)


Offers several brands of a product


Convenience of parking


Fresh fruits and vegetables


Pharmacy facility in a store

Wide selection of ethnic food i.e. pork meat for
Hindus

Open 24 hours


Wide selection of store’s own brand


Has bakery in the store
Data
Ranking Table


                                         as 2nd choice




                                                         as 3rd choice




                                                                         as 4th choice




                                                                                             as 5th choice




                                                                                                             as 6th choice




                                                                                                                             as 7th choice




                                                                                                                                             as 8th choice
                         as 1st choice



 Store Selection                                                                                                                                             Total   Value calculated for rank order


Convenience              23              19              15              5                   6               1                               1                70                   460
Cleaness                 25              19              11              9                   1               1               1               3                70                   456
Secured E                10              14              15              5                   6               11              2               7                70                   361
Reasonable P             3               5                3              5                   5               8               22              19               70                   209
Higher Quality           3               4               10              14                  12              13              8               6                70                   291
Appropriate weight       2               3                8              16                  20              10              5               6                70                   291
Product variety          1               6                7              12                  16              11              13              4                70                   279
Easy to pay              2                                1              5                   4               15              18              25               70                   169


                     * Here,
                     Choice                   Assign Value
                     1st choice                     8
                     2nd choice                     7
                     3rd choice                     6
                     4th choice                     5
                     5th choice                     4
                     6th choice                     3
                     7th choice                     2
                     8th choice                     1
                     For example, if anyone give 'Easy to pay' as 1st choice then we counted he/she gave 8points to 'Easy to pay'
Question1 Question2 Question3 Question4 Question5 Question6 Question7 Question8 Question9 Question10 Question11 Question12 Question13 Question14 Question15 Question16 Question17 Question18 Que
Respondent1              5        4         2         4         4         4         3         4         3          2          4          4           4          5          5          4          1          4
Respondent2              4        4         4         5         4         4         3         4         5          3          4          4           3          4          4          4          4          4
Respondent3              5        4         3         4         4         3         3         5         4          4          3          2           3          4          4          3          3          4
Respondent4              4        4         4         5         3         4         4         2         4          4          5          3           4          3          4          4          4          5
Respondent5              5        3         3         5         4         4         3         4         4          4          3          4           4          5          3          5          3          4
Respondent6              4        3         4         4         3         4         5         4         4          4          5          4           2          5          3          5          4          4
Respondent7              4        3         4         3         4         4         3         4         4          4          3          4           3          3          4          4          4          4
Respondent8              5        5         5         4         4         4         3         4         4          3          4          3           5          5          4          4          4          4
Respondent9              4        5         4         5         4         5         5         4         5          5          5          4           5          3          4          5          4          5
Respondent10             3        3         4         5         5         3         4         2         4          5          4          4           1          2          2          2          2          3
Respondent11             4        3         4         4         5         3         3         4         5          3          5          4           5          5          3          4          4          5
Respondent12             4        3         3         4         5         3         4         4         2          3          4          4           5          4          4          4          4          5
Respondent13             5        4         5         5         5         3         4         5         4          5          5          5           5          5          5          5          4          5
Respondent14             3        4         2         4         1         1         3         5         5          3          5          4           5          5          5          4          5          5
Respondent15             4        4         2         4         3         4         3         4         4          5          4          5           3          4          5          4          4          4
Respondent16             4        4         4         4         3         3         3         4         4          3          3          3           3          3          3          5          4          3
Respondent17             4        4         4         3         5         4         4         3         5          2          4          3           4          4          3          4          2          5
Respondent18             5        4         4         4         2         4         4         3         4          3          4          4           4          3          4          4          4          4
Respondent19             5        4         3         4         4         4         3         5         3          4          3          4           4          3          4          4          3          4
Respondent20             5        3         4         4         5         3         3         4         5          4          4          2           3          4          4          5          3          4
Respondent21             4        4         3         4         3         4         4         5         5          3          3          4           4          3          4          4          3          4
Respondent22             4        3         4         4         3         4         3         4         5          3          4          4           3          4          4          5          4          4
Respondent23             4        4         4         3         3         4         4         4         4          2          3          3           3          3          4          4          3          4
Respondent24             4        3         4         4         4         3         2         4         5          4          2          2           2          3          3          5          3          4
Respondent25             4        3         4         4         3         4         3         3         4          2          4          3           3          4          4          5          3          4
Respondent26             4        4         2         3         4         2         3         4         3          4          4          3           1          3          3          4          3          5
Respondent27             4        4         3         4         3         4         4         4         4          3          3          3           3          5          4          5          4          4
Respondent28             4        3         3         5         3         3         4         4         4          3          4          5           4          5          3          4          2          4
Respondent29             5        4         4         3         3         4         4         4         4          2          4          2           3          5          4          5          3          4
Respondent30             5        4         3         5         5         5         5         5         5          4          4          4           3          2          4          3          5          5
Respondent31             5        5         4         5         5         4         5         5         5          4          4          4           1          4          4          5          3          5
Respondent32             3        4         2         4         2         1         3         5         5          3          5          4           5          4          4          5          5          4
Respondent33             5        4         4         4         2         4         4         5         4          2          4          4           3          4          4          4          3          5
Respondent34             4        4         3         4         3         4         3         4         4          5          4          5           3          4          5          4          4          4
Respondent35             3        4         1         4         3         4         5         2         3          3          5          4           5          5          4          3          3          5
    Total              148      132       120       144       126       125       126       140       146        120        138        128         121        137        135        148        121        150

   Level of
 satisfaction     4.23       3.77      3.43      4.11      3.60      3.57       3.60      4.00      4.17       3.43        3.94        3.66        3.46        3.91        3.86        4.23        3.46         4.29
 Out of FIVE


                Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary                          Summary     Summary     Summary    Summary      Summary     Summary     Summary      Summary     Su
                Five = 12  Five = 3   Five = 2  Five = 9  Five = 8  Five = 2  Five = 5   Five = 9 Five = 12  Five = 5     Five = 8   Five = 4     Five = 8   Five = 11    Five = 5   Five = 13    Five = 3    Five = 12   Fiv
                Four = 19 Four = 21 Four = 18 Four = 21 Four = 10 Four = 21 Four = 12 Four = 20 Four = 18 Four = 11      Four = 18   Four = 19    Four = 8  Four = 12    Four = 21   Four = 18   Four = 15    Four = 21   Fo
                Three = 4 Three = 11 Three = 9 Three = 5 Three = 13 Three =9 Three = 17 Three = 3 Three = 4 Three = 13   Three = 8   Three = 8   Three = 14 Three = 10   Three = 8   Three = 3   Three = 13   Three = 2   Th
                                      Two = 5             Two = 3    Two =1   Two =1     Two = 3   Two = 1   Two = 6      Two = 1     Two = 4     Two = 2    Two = 2      Two = 1     Two = 1     Two = 3
                                      One = 1             One = 1   One = 2                                                                       One = 3                                         One = 1
Satisfaction trend of consumers


                     5.00


                     4.50


                     4.00


                     3.50
Satisfaction level




                     3.00


                     2.50


                     2.00


                     1.50


                     1.00


                     0.50


                     0.00
                            1   2   3   4   5    6   7   8   9   10   11   12   13   14   15   16   17   18   19
                                                             Question no
Question1     Question2     Question3     Question4     Question5     Question6     Question7     Question8     Question9     Question10 Question11 Question12 Question13 Question14 Question15 Question16 Question17 Question18 Question19
Respondent36            4             3             4             5             3             4             2             1             4              2          4          1          2          4          4          3          4          3          5
Respondent37            4             4             4             4             4             4             4             1             5              5          5          5          3          5          3          1          5          3          4
Respondent38            4             3             5             4             4             4             5             1             4              5          5          3          2          5          4          3          5          3          4
Respondent39            4             3             4             4             2             4             4             3             4              4          4          4          3          4          3          4          4          3          3
Respondent40            5             3             2             5             2             5             5             5             3              5          2          4          2          5          5          4          5          4          3
Respondent41            3             4             3             5             3             4             3             1             3              5          4          3          2          4          1          3          1          3          2
Respondent42            4             4             1             4             1             4             3             1             4              4          2          1          1          4          1          3          1          2          1
Respondent43            5             3             4             5             3             4             2             5             4              4          3          3          2          5          4          2          5          3          4
Respondent44            4             3             5             5             3             4             4             2             5              4          4          3          2          3          3          3          4          5          3
Respondent45            5             4             2             3             4             5             3             4             4              4          4          4          3          4          4          4          3          4          4
Respondent46            3             3             4             4             2             5             5             2             5              4          5          3          3          4          5          3          4          5          3
Respondent47            4             1             4             5             1             4             1             1             4              4          4          3          5          2          3          4          2          4          1
Respondent48            5             3             3             5             2             3             3             4             3              4          2          4          5          5          4          2          3          4          4
Respondent49            1             3             3             5             1             4             3             1             5              1          4          1          1          5          3          5          5          4          2
Respondent50            5             5             3             5             4             5             4             5             5              4          5          4          4          2          4          4          4          3          4
Respondent51            5             3             3             5             1             5             5             1             5              5          5          3          5          3          3          3          3          5          5
Respondent52            5             3             3             5             2             5             3             5             4              4          3          4          2          5          4          4          5          4          2
Respondent53            2             3             3             5             3             5             5             3             4              4          5          5          3          3          4          5          2          4          4
Respondent54            5             1             5             5             4             5             5             4             5              5          5          5          1          5          3          4          5          3          5
Respondent55            5             3             3             5             3             4             4             3             3              5          5          3          1          5          5          3          4          3          5
Respondent56            3             4             2             5             2             4             5             2             4              5          5          4          2          3          4          4          3          3          3
Respondent57            4             5             2             3             2             4             5             4             5              5          5          3          4          3          5          4          3          4          3
Respondent58            4             5             3             4             3             5             5             4             5              4          5          3          5          4          5          3          4          5          3
Respondent59            4             3             5             5             2             5             5             1             5              5          5          4          2          3          4          3          3          4          3
Respondent60            3             4             4             5             3             4             5             2             4              4          5          5          3          3          3          3          4          4          4
Respondent61            4             4             3             4             3             5             5             4             5              5          5          3          1          1          3          3          4          5          3
Respondent62            4             2             4             5             1             4             4             1             5              5          5          4          1          3          3          3          4          4          3
Respondent63            5             4             3             5             3             4             5             2             5              5          5          3          3          3          3          3          5          5          5
Respondent64            4             3             5             5             3             5             5             4             4              3          5          3          2          2          3          3          4          4          5
Respondent65            5             5             3             5             4             5             4             2             5              5          5          3          1          2          3          4          4          4          4
Respondent66            5             1             5             5             4             5             4             3             5              5          5          2          1          4          3          4          5          3          5
Respondent67            5             3             1             5             1             5             4             4             4              5          3          4          1          5          3          4          4          5          3
Respondent68            4             5             5             5             2             5             4             3             3              4          3          3          4          4          2          1          3          2          2
Respondent69            3             3             4             4             2             5             4             2             5              4          5          3          2          3          3          2          4          4          4
Respondent70            3             3             5             5             1             4             4             4             5              4          5          4          2          3          3          3          3          4          4
    Total             142           116           122           163            88           156           141            95           152            150        151        117         86        128        120        114        131        132        122
   Level of
 importance           4.06          3.31          3.49          4.66          2.51          4.46          4.03          2.71          4.34          4.29         4.31         3.34         2.46         3.66         3.43         3.26         3.74         3.77         3.49
 Out of FIVE

                Summary      Summary       Summary        Summary       Summary       Summary       Summary       Summary       Summary       Summary      Summary      Summary      Summary      Summary      Summary      Summary      Summary      Summary      Summary
                Five = 13     Five = 5      Five = 8      Five = 25                   Five = 17     Five = 14      Five = 4     Five = 17     Five = 16    Five = 21     Five = 4     Five = 4     Five = 10    Five = 5     Five = 2     Five = 9     Five = 7     Five = 7
                Four = 14     Four = 8      Four = 9      Four = 8      Four = 7      Four = 17     Four = 12     Four = 9      Four = 13     Four = 16    Four = 7     Four = 11    Four = 3      Four = 9    Four = 10    Four = 12    Four = 14    Four = 15    Four = 11
                Three = 6    Three = 18    Three = 12     Three = 2    Three = 11     Three = 1     Three = 6     Three = 5     Three = 5     Three = 1    Three = 4    Three = 16   Three = 7    Three = 11   Three = 17   Three = 16   Three = 8    Three = 11   Three = 11
                 Two = 1      Two = 1       Two = 4                     Two = 10                     Two = 2       Two = 7                     Two = 1      Two = 3      Two = 1     Two = 12      Two = 4      Two = 1      Two = 3      Two = 2      Two = 2      Two = 4
                 One = 1      One = 3       One = 2                     One = 7                      One = 1      One = 10                     One = 1                   One = 3      One = 9      One = 1      One = 2      One = 2      One = 2                   One = 2
Trends of consumers' importance level

                      5.00


                      4.50


                      4.00


                      3.50
Level of importance




                      3.00


                      2.50


                      2.00


                      1.50


                      1.00


                      0.50


                      0.00
                             1   2   3   4   5   6     7    8    9   10   11   12   13   14   15   16   17   18   19   20   21
                                                                      Question no
Gender         Age                Income                  Expenditure               No.of visit         Brand loyal
Respondent1       F             D                    C                        D                         B                   N
Respondent2       F             B                    C                        D                         C                   Y
Respondent3       M             D                    C                        B                         A                   N
Respondent4       M             D                    D                        D                         B                   Y
Respondent5       F             B                    C                        C                         B                   N
Respondent6       F             D                    D                        E                         C                   Y
Respondent7       M             A                    B                        B                         A                   Y
Respondent8       F             C                    D                        B                         C                   Y
Respondent9       F             C                    C                        B                         A                   N
Respondent10      M             B                    C                        B                         A                   N
Respondent11      F             B                    E                        B                         B                   N
Respondent12      F             B                    D                        B                         B                   Y
Respondent13      F             B                    F                        F                         B                   N
Respondent14      F             C                    D                        D                         B                   Y
Respondent15      F             C                    E                        D                         A                   Y
Respondent16      F             C                    D                        C                         C                   N
Respondent17      M             D                    D                        D                         B                   Y
Respondent18      M             B                    C                        B                         A                   Y
Respondent19      F             B                    C                        C                         B                   Y
Respondent20      F             C                    C                        C                         B                   N
Respondent21      F             B                    F                        F                         C                   N
Respondent22      F             A                    B                        B                         B                   Y
Respondent23      M             B                    C                        B                         A                   Y
Respondent24      M             D                    F                        F                         B                   N
Respondent25      M             D                    F                        E                         B                   Y
Respondent26      F             D                    E                        E                         B                   Y
Respondent27      F             D                    E                        D                         B                   Y
Respondent28      M             B                    C                        B                         A                   Y
Respondent29      F             C                    F                        F                         B                   Y
Respondent30      F             C                    F                        E                         A                   Y
Respondent31      F             C                    F                        F                         B                   Y
Respondent32      F             C                    E                        D                         B                   Y
Respondent33      F             C                    F                        F                         B                   Y
Respondent34      F             C                    E                        D                         B                   Y
Respondent35      F             D                    E                        B                         A                   Y
Respondent36      M             B                    C                        A                         A                   N
Respondent37      F             B                    F                        C                         C                   Y
Respondent38      F             B                    F                        D                         C                   Y
Respondent39      F             B                    D                        E                         B                   Y
Respondent40      M             E                    F                        F                         D                   Y
Respondent41      M             B                    F                        C                         A                   N
Respondent42      M             C                    D                        B                         A                   Y
Respondent43      F             B                    F                        F                         C                   Y
Respondent44      M             E                    D                        B                         A                   N
Respondent45      F             B                    E                        E                         D                   Y
Respondent46      M             D                    C                        B                         A                   Y
Respondent47      F             D                    C                        C                         B                   Y
Respondent48      F             C                    D                        C                         D                   Y
Respondent49      M             E                    F                        F                         D                   N
Respondent50      F             B                    D                        C                         B                   N
Respondent51      M             B                    B                        E                         A                   Y
Respondent52      F             B                    E                        F                         C                   Y
Respondent53      F             B                    C                        C                         B                   Y
Respondent54      M             C                    D                        C                         C                   Y
Respondent55      F             C                    D                        E                         A                   N
Respondent56      F             B                    B                        B                         B                   N
Respondent57      F             C                    C                        C                         B                   N
Respondent58      M             B                    C                        C                         B                   Y
Respondent59      F             E                    C                        C                         B                   N
Respondent60      F             B                    C                        C                         B                   Y
Respondent61      M             B                    B                        B                         A                   Y
Respondent62      F             D                    C                        C                         C                   Y
Respondent63      F             B                    E                        E                         D                   Y
Respondent64      F             C                    B                        B                         B                   N
Respondent65      F             B                    E                        C                         B                   N
Respondent66      M             C                    D                        B                         B                   N
Respondent67      F             B                    C                        C                         A                   N
Respondent68      M             A                    A                        A                         B                   Y
Respondent69      M             D                    C                        B                         A                   Y
Respondent70      F             B                    B                        B                         B                   N

               * Here,      * Here,             * Here,                   * Here,                   * Here,             * Here,
               M = Male     A = 18 - 25years    A = Under TK10,000        A = TK0 – TK2,000         A = 0 to 5 times    Y = Yes
               F = Female   B = 26 - 35years    B = TK10,001 - TK20,000   B = TK2,001 – TK5,000     B = 6 to 10times    N = No
                            C = 36 - 45years    C = TK20,001 – TK30,000   C = TK5,001 – TK10,000    C = 11 to 15times
                            D = 46 - 55years    D = TK30,001 – TK40,000   D = TK10,001 – TK15,000   D = More: ………
                            E = 55 - and over   E = TK40,001 – TK50,000   E = TK15,001 – TK20,000
                                                F = TK50,000 and over     F = TK20,000 and over
Age




                     A(18-25)
                     B(26-35)
                     C(36-45)
                     D(46-55)
                     E(55+)




  Income




                     A(10-)
                     B(11-20)
                     C(21-30)
                     D(31-40)
                     E(41-50)
                     (50+)




Expenditure




              A(0-2000)
              B(2001-5000)
              C(5001-10000)
              D(10001-150000)
              E(15001-20000)
              F(20000+)
Data Analysis
Chi-Square Testing

                                Contingency Table
                              Men                              Women
Awareness of           Observed            Expected      Observed Expected
   Brand                Value               Value         Value     Value                     TOTAL

       Aware               17               15.77               29        30.23                46

      Unaware               7                8.23               17        15.77                24
                                                                                               70



      Expected (Theoretical) Value Computation
Awareness of
   Brand                        Men (N1)                        Women (N2)                    Total

     Aware (N1)                    17                                29                        46

 Unaware (N2)                      7                                 17                        24
                                   24                                46                        70

Expected value                                               Expected value
   Cell N11        (46) * (24) / 70 =      15.77                Cell N12          (46) * (46) / 70 =   30.23
Expected value                                               Expected value
   Cell N21        (24) * (24) / 70 =      8.23                 Cell N22          (24) * (46) / 70 =   15.77



                                    χ² Computation
Fo          Fe           Fo - Fe                   (Fo - Fe)²                     (Fo - Fe)² / Fe

17        15.77           1.23                       1.513                            0.096

29        30.23           -1.23                      1.513                             0.05

7          8.23           -1.23                      1.513                            0.184

17        15.77           1.23                       1.513                            0.096

                                                             χ² =                  0.426
                                        DOF = (2 - 1) * (2 - 1) = 1

                             Critical value of χ² with 1 DOF =       3.841
                                         (considering α = 0.05)
Ho: Brand Awareness is independent of respondent’s sex.

Result: Calculated value of χ² (0.426) is less than the critical value of χ² (3.841). Thus,
we do not reject the null hypothesis.

Conclusion: Men and women are equally aware of Brand.




                  Acceptance region
           Accept the null hypothesis if the
            sample value is in this region
                                                                                Chi-square
                                                                             distribution with
                                                                                1 degree of
                                                                                  freedom




                                                                    0.05 of area



                                                        3.841
0.426
Z-test Computation
                                                                          Confidence level
        n = 35            ⎯x = 3.85    s = 0.236            Se = 0.04         = 95 %           µ = 3.90     s² = 0.056
                                                             3.85 - 3.9                              Ho: µ = 3.9
       z critical value = 1.96
                                               z=                           = -1.25
                                                                0.04                                 H1: µ < 3.9


                                          Detailed Calculation
          I                II           III                 IV
          x               ⎯x          x - ⎯x             (x - ⎯x)²
        4.23             3.85          0.38               0.1444
        3.77             3.85         -0.08               0.0064
        3.43             3.85         -0.42               0.1764
        4.11             3.85          0.26               0.0676
         3.6             3.85         -0.25               0.0625
        3.57             3.85         -0.28               0.0784                             1.8921
                                                                              s² =                           = 0.056
         3.6             3.85         -0.25               0.0625                               34
          4              3.85          0.15               0.0225
        4.17             3.85          0.32               0.1024                             √0.056
                                                                              Se =                            = 0.04
        3.43             3.85         -0.42               0.1764                              √35
        3.94             3.85          0.09               0.0081
        3.66             3.85         -0.19               0.0361
        3.46             3.85         -0.39               0.1521
        3.91             3.85          0.06               0.0036
        3.86             3.85          0.01               0.0001
        4.23             3.85          0.38               0.1444
        3.46             3.85         -0.39               0.1521
        4.29             3.85          0.44               0.1936
         4.4             3.85          0.55               0.3025
⎯x = 73.12 / 19 = 3.85                             ∑(x - ⎯x)² = 1.8921
0.475
0.025                       0.475




Critical z value = -1.96                    0

                                    -1.25 = calculated value of z


Ho: Overall satisfaction level, µ = 3.9
H1: Overall satisfaction level, µ < 3.9
Result: The calculated value of z falls within the accepted region as seen in the picture.
Conclusion: There is no enough reason to reject the null hypothesis.
Regression Analysis
                            X               Y            X²              Y²          XY
                            1                2           1               4            2
                            7               21           49             441          147
                           22               18          484             324          396
                           15               10          225             100          150
                           11                9          121              81           99
                           14               10          196             100          140
                       ⎯X = 11.67       ⎯Y = 11.67   ∑X² = 1076      ∑Y² = 1050   ∑XY = 934

                       b = 0.452        a = 6.388    r = 0.477       Se = 6.721


                                           Regression Chart
              25




              20




                                                                                      2
                                                                                     R = 0.2275
              15
Expenditure




              10




              5




              0
                   0                5                10                15             20          25
                                                            Income
Bibliography
Book:
   1. Business Research Methods by William G. Zikmund, 8/e
   2. Statistics for Management by Rochard I. Levin and David S. Rubin, 7/e


Articles:

   1. Journal of Business Studies, Vol. XXVI, No. 1, June 2005

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Final report(on super store)

  • 1. A RESEARCH ON SUPER-STORE BUSINESS IN BANGLADESH – CONCENTRATION AREA INCLUDES THE FACTORS FACILITATES ITS EXPANSION
  • 2. A RESEARCH ON SUPER-STORE BUSINESS IN BANGLADESH – CONCENTRATION AREA INCLUDES THE FACTORS FACILITATES ITS EXPANSION Prepared for: Mr. Oli Ahad Thakur - Senior Lecturer Prepared by: Name ID Ehmed Kushal Imtiaz 043200020 K. M. Monsurul Aziz 043200082 Mohammad Abdullah Zubair Bhuiayn 043200098 Semester – 9th Program - Bachelor of Business Administration Eastern University House # 15/2, Road # 3, Dhanmondi R/A, Dhaka-1205 October 8, 2007
  • 3. October 8, 2007 Mr. Oli Ahad Thakur Senior Lecturer Faculty of Business Administration Eastern University Dear Sir: As a part of our BUS 330 course curriculum, we are pleased to submit you this research report. In our regular class, you have orally authorized us to do this report on a particular topic. The research topic has selected by the group members and the topic is really interesting. The research topic is - “A research on Super-store business in Bangladesh – Concentration area includes the factors facilitate its expansion”. Super-store business in Bangladesh is in the growth stage and very few research works have been conducted in this sector. For this reason, we chose this area as our research field. Our research is an exploratory one. This research has been conducted due to enhance the reader’s knowledge. Kindly accept our report and oblige us thereby. Thank you for choosing us for working on this topic. Yours’ sincerely, Members of the group Ehmed Kushal Imtiaz K. M. Monsurul Aziz Mohammad Abdullah Zubair Bhuiayn
  • 4. Table of Contents Title Page no. Executive Summary V 1.0 Introduction 01 1.1 Literature Review (Relevant Background) 02 1.2 Objective of the study 04 2.0 Research Methodology 05 3.0 Findings of the study 10 3.1 Discussion on findings and observations 13 4.0 Limitation of the study 15 5.0 Suggestions for further research 15 Appendix Bibliography
  • 5. Executive Summary This research report is a part of BUS 330 course curriculum. The primary objective of this report is to learn how to conduct a research and write it down in a formal and specific manner. The secondary objective of this study comes from the research topic which comprises of three issues: 1. Identify the factors that are most important to consumers in choosing a super-store 2. Find out consumers’ degree of satisfaction with the service provided by the existing super-stores and 3. To get consumers’ impression about the super-store shopping in relation to the traditional stores This is an exploratory research and quota sampling has been used. Total number of sample is 70. For data analysis, hypothesis testing (with z-test and chi-square) and regression analysis have been used. Consumer ranked convenience as first priority while choosing super-store shopping in relation to the traditional one. Cleanliness and secured environment were ranked second and third respectively. Chi-square test shows that men and women are equally aware of brand. Z-test analysis shows that there is significant opportunity to go for super-store business. Regression analysis produces a vague result which calls for descriptive research in the future. The analysis of satisfaction level and importance level shows that if an entrepreneur wants to go for super- store business, then emphasize on the mentioned factors (lower raked satisfaction area) along with the most important ones can give the new store a competitive edge. Limitations of this study include non availability of sampling frame, respondents’ unwillingness to cooperate and judgmental differences since larger number of female respondents. The development of super-store business in Bangladesh is in the growth stage and very few research works have been conducted regarding super-store. Thus, there is a huge room for additional study. The utilization of shelf-spaces for a particular product and its generation of profit volume can be very critical to judge but will provide very in-depth findings about profitability. Consumers’ shopping pattern is also a variable of the standard of living and thus, it can be said that the impacts of super-stores can be a matter of study for sociology and other relevant social science fields. The super-stores are popularizing more readymade foods in a convenient way, which can result time saving from cooking and surplus time for recreation, workplace, fulfillment hobbies, etc. V
  • 6. 1.0 Introduction Business world never goes with the word ‘Status Quo’. Business world is dynamic and business is a never ending process. Ease of access to the information, that is, the technological innovation engraves its art in every aspect of our life. This is more relevant for the business world since business closes the gap between the market place and technology. The more a country implants the technology in its business, the more it becomes successful. The governments are now lessen their trade barriers between countries and grab the open market practices. The world tends to become a global village. This changes the form of business all over the world and it becomes inevitable. In our society, its impact also has been observed. The emergence of super-store business in our country gives us the signal to be a part of the global village. Technology makes communication easier. Today ease of getting information is very much affordable as said earlier. Thus, we are exposed to more information. We are becoming more educated. Now, we can justify more wisely. We do know what is good for us in a better way. This know-how changes our lifestyles. As we know differences in consumers’ needs, wants, personalities, attitudes, economic situation, educational background, personal tastes and social status make our shopping pattern different and globalization effect shapes our know-how, the tracking of consumers’ shopping pattern becomes a very complex job. Now marketers have to consider different issues while satisfying their customers’ needs. For example, in recent study, it has seen that besides the factors as mentioned above, the choice of location, buying process, and environment of store also influence shopping decisions. Today, shopping pattern does not include the buying only but includes associated aspects of buying, as walking around, window shopping, location, surroundings, etc. -1-
  • 7. 1.1 Literature Review (Relevant Background) The traditional store for grocery shopping can be said as the business (whose sales and assets are not large enough to influence its environment; Griffin 2002) that generally offer limited merchandise and provide services mostly by untrained shop workers. On the other hand “bazar” is a location centric concept where many sellers gather their limited variety of merchandise (mostly perishable) for sales and customers required two transact in every point of sale, which means more time consumption for purchasing full-scale grocery. The evolution of super-store in the United States and several economical, social, political, technological and educational changes had complimented to the revolution of super-store in world-wide. At the same time, developing nations also felt the shake of it, as a result of globalization, though in limited scale till now. The mission of this study toward the contributing factors behind change in grocery shopping will bring clarity to the analyses. The change in retail formats came from the concept of open salvages, where public could be let into the stock room and would not create havoc (George Wedd, 1998). He also focused on those traditional shops which are highly specialized: stationers sold stationery: greengrocers sold vegetables- so that a shopping trip had to be carefully planned (George Wedd, 1998). Two terms appeared as ‘unorganized sector’ (traditional stores) and ‘organized sector’ (super-stores) and it has been seen as a shift from the first one to the second one (Simone Tata, 2003). Accordingly to her, ‘organized retail stores are characterized by large professionally managed format - providing goods and services that appeal to customers’. She has focused on liberalization, more spending power (to particular income group), more educated population, and most importantly, exposed to brands and products through television the development of ‘organized sector’. She also cited that division of joint families giving way to nuclear families, and the increasing number of working couples also contributed to the acceptability of super-store shopping. Moreover, convenience shopping is becoming more demandable by the rising number of two income families (Riche, 1987). Social and economical factors like, increase in multiple career households (means more disposable income), and demand for convenience, quality, and time savings (Doris J. Newton, 2003) made positive correlation to super-store sales. He also outlined the concept of “one stop shopping” (large scale of requirement fulfillment; grocery and animal foods, pharmaceutical products, video rentals, and general merchandise as clothing), which is an attributable factor behind the success of super-stores. And this success also be expressed in numerical terms, as -2-
  • 8. super-stores accounted for over 70 percent of total food store sales and 72 percent in grocery store sales in 1992 (U.S. Department of Agriculture). Packaging technology and refrigeration, which provided longer shelf life, led to weekly versus daily shopping (Levy and Weitz, 1992). Stock assortment (the combination of different trades and the enrichment of stock assortment within particular trades ensures economies of scale) and self service (customers have access to the goods and may inspect them without the mediation of salespersons and having assembled her requirements from anywhere in the shop, and pays once only, at the exit) defined as major attributes of super-stores (W.G. McClelland, 1962). Hence the main difference from the traditional grocery shops that super-store is self-service, hassle free food shop and requires one point of sale. But it is clear that this expanding retail formats give consumers more shopping alternativeness and also make it more difficult to define market for many of these (Paul little, 2003). That’s why Johnathan Pearce (2003) contended that for many people, shopping is an extension of leisure activity not only just an exchange process of buying food for the table. He also added that super-stores made women easier to leave the home and go into the work. Otherwise shopping would take much more time. According to Messinger and Narasimhan (1997) consumers’ choice of retailers is primarily influenced by assortment, price, and transactional conveniences relating to shopping time and logistics, and utility or disutility from the shopping experience. Their empirical examination suggested that greater prevalence of one stop shopping has been a response to growing demand for time saving convenience. Messinger and Narasimhan also acknowledged that transportation and inventory-holding technologies (refrigeration) are prerequisites to one-stop shopping, which ultimately complemented super-store development. In store promotion facilities of super-stores are utilized with the hope of increasing sales of their merchandise through ‘impulse’ buying (Abratt and Goodey, 1990). The term ‘super-store’ can be said as a store twice as the size of a regular grocery stores that carries a large assortment of routinely purchased food and non-food items and offers services such as dry cleaning, post offices, photo finishing, check cashing, bill paying, lunch counters, car care, and pet care (Kotler and Armstrong 2003). The present format of the stores, which have been focused in this study, is popular as super-stores/super-shop/super-center in Bangladesh but it matches more with the definition of super-store except the attribute of low-cost. Though, in Bangladesh ‘super-store’ erroneously means shopping malls/shopping centers. [Source: Journal of Business Studies, Vol. XXVI, No. 1, June 2005] -3-
  • 9. 1.2 Objective of the study This report has been prepared for the academic purpose. This is a part of BUS 330 course curriculum. The primary objective of this report is to learn how to conduct a research and write it down in a formal and specific manner. The secondary objective of this study comes from the research topic which comprises of three issues: (1) Identify the factors that are most important to consumers in choosing a super- store (2) Find out consumers’ degree of satisfaction with the service provided by the existing super-stores and (3) To get consumers’ impression about the super-store shopping in relation to the traditional stores -4-
  • 10. 2.0 Research Methodology This is an exploratory research. This study is not intended to finding any solution of the problem rather it provides an orientation to the readers by gathering information on a topic with which he/she has little experience. It provides greater understanding of a concept rather than providing precise measurement. This research has been conducted based on primary data collection covering the Dhaka city area. Considering the time constrain and ease of collecting information structured questionnaire has been used for collecting the information. It facilitates this study in several ways: (1) Let the researchers quick access to the necessary information (2) Make it easy for the respondent to answer (3) answers are in the form of numerical data (ranking), thus, easy to analyze and interpret (4) let the researchers to avoid the effect of leading question by giving numerous choices (5) the questionnaire has been moderated by the instructor which increases the scope of the covering area. The population of this study covers the individuals who make their shopping in the super-stores. It is a consumer-focused study and the list of super-stores shoppers is still not reality (no sampling frame available). For this reason, quota sampling has been used (non-probability sampling). The control variables (sampling unit) for sampling are- (1) Super-store identification: The super-stores, where large numbers of transactions take place at different point of time in a week, were identified through observations. Identified points of sales were Agora, Almas Super Shop, Prince Bazar Limited, Nandan, and Family World. (2) Day selection: Friday, Monday and Thursday. (3) Time slot: 11 AM to 12 PM and 4 Pm to 7 PM. (4) Respondents’ criteria: Likelihood of more than 18 years old for being capable of independent judgments and at least three items in his/her basket that strengths the possibility of making transactions. Five respondents were interviewed in two hours according to the questionnaire to collect required data. Total sample size is 70. Data have been analyzed by using rank order and statistical tools. Among 70 samples only two errors occur. Both of the errors are response bias. One is deliberate falsification. Here the respondent gave answer in order to appear intelligent. The other respondent seemed to misunderstand the question and unconsciously gave bias answer. No other response errors and administrative errors occur since the researchers were very cautious. A table given below shows the steps that the researchers took to protect biasness. -5-
  • 11. Errors Steps taken to avoid Acquiescence Bias (response bias) Well-designed questionnaire and respondents were given enough choices. Interviewer Bias (response bias) Let the respondent to fill up the questionnaire by him/her self. Auspices Bias (response bias) The researchers assure the respondent by saying that this survey will be conducted only for the academic purpose. Social Desirability Bias (response bias) No such leading question has been added Data Processing Error (admin. error) The researchers took enough time to record the information. All the group members record the information individually then the recorded information has been checked to one another. Sample Selection Error (admin. error) The researchers spot quota sampling which reduces the likelihood of occurring sample selection error significantly. Interviewer Error (admin. error) Questionnaire had been filled up by the respondent and the researchers closely monitored the responses. Interviewer Cheating (admin. error) Moral and ethical concerns To discuss the reasons for which people go to super-stores instead of traditional grocery stores, satisfaction level of current customers and contribution of super- stores in our shopping behavior, a Focus Group Interview (FGI) has been conducted on 7th September 2007 (Friday). On that day, there were six people on the location and the researchers tried to interview those, who are relatively homogeneous and have similar lifestyles and experiences. The researchers tried to make sure that every one gets a chance to speak and to ask questions to clarify topics that have been introduced in the discussion. -6-
  • 12. For analyzing data the researchers use two statistical tools. One is simple regression analysis. For regression analysis, the least-squares method has been used. Using the criterion of least squares, the researchers can determine whether one estimating line is a better fit than another. Statisticians have derived two equations we can use to find the slope and the Y-intercept of the best-fitting regression line. The first formula calculates the slope: ΣXY – n ⎯X⎯Y b = ------------------------ ΣX² - n ⎯X² Where, b = slope pf the best-fitting estimating line X = values of the independent variable (% Income change) Y = values of the dependent variable (% change in Expenditure) ⎯X = mean of the values of the independent variable ⎯Y = mean of the values of the dependent variable n = number of data points The second formula calculates the Y-intercept of the line whose slope we calculated using the first equation: a = ⎯Y – b⎯X Where, a = Y- intercept b = slope from first equation ⎯Y = mean of the values of the dependent variable ⎯X = mean of the values of the independent variable The following formula has been used to calculate the Standard Error of Estimate: ΣY² - a ΣY – b ΣXY Se = ---------------------------- n–2 The standard error of estimate measures the variability of the observed values around the regression line. -7-
  • 13. The following formula has been used to determine Sample Coefficient of Determination: a ΣY + b ΣXY – n⎯Y² r² = ---------------------------------- ΣY² - n⎯Y² Sample Coefficient of Determination (r²) is a measure of the proportion of variation in Y, the dependent variable (% change in Expenditure), that is explained by the regression line, that is, by Y’s relationship with the independent variable (% Income change). Coefficient of Correlation (r) is just the square root of the coefficient of determination. Its sign indicates the direction of the relationship between two variables, direct or inverse. r= r² -8-
  • 14. The second statistical tool that the researchers use in this study is the hypothesis testing. For hypothesis testing, both the z-test and chi-square test have been used. The following formula has been used for z-test: ⎯x – μ z = ----------------------- Se Where, z = number of standard deviations from the mean of a standard normal probability distribution. ⎯x = sample mean μ = population mean σ Se = sampling error = ------------ √n σ = population standard deviation n = size of sample For chi-square test, the following formula has been used: (Fo – Fe) ² χ² = ∑ ------------------------ Fe Where, χ²= chi-square statistic Fo= observed (actual) frequency in the nth cell Fe= expected (theoretical) frequency in the nth cell For chi-square test, the researchers need to calculate the degrees of freedom. Degrees of Freedom (DOF) refer to the number of values in a sample we can specify freely once we know something about that sample. Here, DOF = (number of rows – 1) (number of columns - 1) All the hypothesis tests have been conducted with a significance level α = 0.05. The significance level (α) refers to the probability of a Type 1 error. Type 1 error occurs when we reject the null hypothesis when it is true. -9-
  • 15. 3.0 Findings of the study According to the survey, consumers ranked Convenience (in terms of suitable operating time, adjacent location, one stop household requirements fulfillment, hassle free environment etc) as first priority for choosing super-store shopping, which is mostly absent in the traditional option for the similar products. Consumers ranked Cleanliness as their second criterion for shopping there, which is very much desired to them but not available in the traditional shopping environment. Secured environment (where the chances of loosing product, pick pocket, snatching, unwelcome touching to ladies most probably do not arise) ranked as their third priority among the eight criteria for choosing this kind of shopping. Appropriate weight and Higher quality both simultaneously became fourth priority whereas consumers have chosen product variety as sixth criterion. Consumer put Responsible price (compared to the facilities offered) in seventh position in the ranking for choosing this type of shopping. Consumers ranked Easy to pay (one point of transaction for all shopping, different cards’ acceptability) as eighth criterion for choosing this type of super-stores. All the presented data provided pivotal guide for drawing inferences from different dimensions. Moreover, our observations also explored some emerging realities from the perspective of change. Convenience, cleanliness, and secured environment represent the appeal of super- stores. Price has less important on the buying decision of most respondents, as reasonable price is the seventh choice of them. Thus, the average income level people of the metropolis voluntarily deny their access to these super-stores. We found most of the respondents simultaneously shop from the option not always to make comparison between them but also for their purchase requirement, location advantage, and time availability. Moreover, almost 80% of simultaneous shoppers allocated higher points for the super-stores for overall advantage in shopping. So it is easily understandable that a group of non-price sensitive buyers (where reasonable price and easy to pay the 7th & 8th reason to shop in the super- stores for consumers) most likely the upper middle class & upper class people already moved their face to super-stores from traditional stores. Chi-square test result: Calculated value of χ² (0.426) is less than the critical value of χ² (3.841). Thus, we do not reject the null hypothesis. Z-test result: The calculated value of z falls within the accepted region as seen in the picture. There is no enough reason to reject the null hypothesis. - 10 -
  • 16. Regression Analysis results: The sample coefficient of determination r² turns out 0.2275. So we can conclude that the variation in the income explains 22.75 percent of the variation in the expenditure. Satisfaction level: According to our observation the following factors should be highlighted if someone wants to open up a new super-store since they got the lowest satisfaction rating – (1) Convenient public areas i.e. cleansing room [3.43] (2) Knowledgeable employees [3.43] (3) Handling of return and exchanges [3.46] (4) Convenient parking [3.46] (5) Store’s commitment to its promises to do something [3.57] (6) Store layout for moving around the store [3.6] (7) ‘Right the first time’ service performance [3.6]. Importance level: According to our observation the following factors should be considered first when someone trade off between super-stores: (1) Convenience of location [4.66] (2) Friendly employees [4.46] (3) Large selection of fruits and vegetables [4.40] (4) Offer several brands of a product [4.34] (5) Fresh fruits and vegetables [4.31] (6) Convenience of parking [4.29] (7) Speed of the service in the cash counter [4.06] Findings of the FGI: Eight major reasons for which people prefer super-stores: Convenience Cleanliness Secured Environment Reasonable Price Higher Quality Appropriate weight Product variety Easy to pay - 11 -
  • 17. Other findings - Though quality is a very subjective mater that is hard to measure and it varies from person to person. In this FGI result, among six respondents 3 consented that product quality was improved in super-stores compared to the traditional stores, 2 respondents said it was partially improved and only 1 respondent said product quality was not improved in the super-stores than the traditional stores. From the FGI, it is clearly identified that consumers’ impression about the price level of most products in these super-stores is slightly higher compared to the prices of traditional shopping. According to the FGI, 3 said that super-stores were providing improved packing for their products compared to the traditional shops. 2 said slightly improved packaging and only 1 said similar type of packaging was provided to their consumers compared to the traditional stores. 2 respondents’ impression about the freshness of the super-stores’ perishable goods were slightly higher compared to the traditional stores, 2 respondents said it was higher, 2 said it was similar and no one said it was lower compared to the traditional stores. Among the 6 respondents, 5 said that they were getting some extra or additional benefits from this type of super-stores. Mainly, these are price discount, free sample, reliable suggestions, parking facility, expiry date printed, air conditioned environment and basket/trolley to carry their shopping bags and special offer during some festival or sometimes they are arranging fruit festival or fish fair. But 1 respondent said that they were not getting any extra or additional benefits from the super-stores. According to the FGI, 3 respondents strongly agreed that they were able to satisfy their all requirements or purposes when they were going to one of the super-stores. 2 respondents partially agreed with this and only 1 strongly disagrees with this statement. Among the 6 respondents, 5 respondents were shopping simultaneously from super-stores and traditional shops and only 1 were not doing so. - 12 -
  • 18. 3.1 Discussion on findings and observations Consumers’ perception about higher quality of products (including perishable products) is the contribution of neat outlook of products, space allocation for products, and self-selection facility (which is totally impossible in traditional option). Additional benefits and fulfillment of all household requirements by super-stores are incomparable to traditional stores, which ultimately contribution to the positive image of super-stores. The additional benefits are actually the application of modern marketing strategies, which represent the emergence of professional touch at the household shopping sector in Bangladesh. Marketers also blessed with new opportunities as they can use these super-stores for promotional campaign in a secured environment, possibility of close interaction with the consumers, CCTV operation for studying buying behavior in addition to the survey. As most of the respondents consented on higher product quality, improved packaging, higher freshness of perishable goods, availability of additional benefits, fulfillment most of the household requirement: it seems that the super-stores are providing more desirable shopping environment. In case responses on up to date equipment, neatness of salesperson, physical establishment, sales persons’ problem solving ability and knowledge of their job are extremely positive. The researchers’ reflection about such response is that, this type of super-stores is in contemporary state in Bangladesh and still has a new look. People are overwhelmed of it till now and still feeling it as status symbol, very different shopping environment; thus people are not yet in a position to demand more desirable facilities from the super-stores. The emergence of super-store also exemplifies the threat to small business and corporate business revolution in Bangladesh. The business once occupied by small investors like, rice mill, turmeric powder, chili powder, vegetable, fish, meat, etc. are increasingly coming under corporate umbrella. So the sum of total sales of many traditional grocery stores becoming the total sales of one super-store. Here the assurance of higher sales volume in one point of sale means more revenue generation, which leads to less per unit distribution cost for the suppliers/distributors. This situation also increases higher bargaining power of super-stores in demanding supplier credit or large price discounts. The super-stores also have higher credit worthiness than individuals as those are under corporate entity. Thus, the super-stores & their suppliers are becoming complementary to each other. But such situation may result in small farmers’ less bargaining power for fair price. Large price discounts also contributes to achieving economies of scale in operation. - 13 -
  • 19. Self-selection is one such important attribute of super-stores which provides a feeling of independence and self-responsibility. This attribute highly support pull strategy of promotion. Thus it has explored more potential & challenges for the markets, especially in advertising and packaging. So there is more room for innovativeness in conceptualizing, and developing advertising and packaging decisions. Inventory management is a challenge for large assortment of products especially for the chance of pilferage. Developing in information technology (IT) eased inventory management and payment process for large basket shopping, which encourages the development of super-store in Bangladesh. In convenience stores one identical benefit for the neighbors is credit facility, which is replaced by credit card acceptance in super-stores. This situation indicates to a group of consumer who can exploit this advantage. The present withdrawal of rickshaws from major roads also limits many customers’ entry to super-stores, which poses new challenge for the location decision of super-stores. So a particular target market is going to be shared by rising number of super-stores, which will result intense competition. Thus, the researchers suggest more promotional aspects like discount through loyalty cards for retaining consumers to ensure repetitive purchase. Chi-square test: Men and women are equally aware of brand. So super-store owners should consider offering standardized product (branded) in their stores. Z-test: The overall satisfaction level of the super-store customers is 3.90 out of five. Thus it can be concluded that there is significant opportunity for other entrepreneurs to startup the super-store business. They can get substantial advantages by offering facilities that is absent or partially present in the existing business. The super-store business is in the growth stage at present. Regression analysis: This study produces an insignificant relationship between incomes versus expenditure in super-store shopping. The reason is vague to the researchers. Since this research is an exploratory one, so this finding calls for further research. Satisfaction level & importance level: If an entrepreneur wants to go for super- store business, then emphasize on the mentioned factors along with the most important ones can give the new store a competitive edge. - 14 -
  • 20. 4.0 Limitation of the study Absence of super-store shopper’s list is the main limitation, for which non- probability sampling has been used. Respondent’s unwillingness to answer the question is another limitation. It is also noted that more females than males responded to the survey. This may be one of the cultural impacts that females are more familiar with the low involvement product or grocery items. Thus, judgmental differences because of gender may have reflected in this study. 5.0 Suggestions for further research The development of super-store business in Bangladesh is in the growth stage and very few research works have been conducted regarding super-store. Thus, there is a huge room for additional study. The utilization of shelf-spaces for a particular product and its generation of profit volume can be very critical to judge but will provide very in-depth findings about profitability. Consumers’ shopping pattern is also a variable of the standard of living and thus, it can be said that the impacts of super-stores can be a matter of study for sociology and other relevant social science fields. The super-stores are popularizing more readymade foods in a convenient way, which can result time saving from cooking and surplus time for recreation, workplace, fulfillment hobbies, etc. - 15 -
  • 23. Dear Sir/Madam: I am a student of BBA, Eastern University. I am conducting a research on the Super store Industry in Bangladesh. All information collected will be kept confidential and used only for academic purpose. If you are over 18 years old and a regular customer of retail stores, we would greatly appreciate it if you complete this questionnaire. Thank you.
  • 24. Your gender__ Male Female What is your age? 18 - 25 26 - 35 36 - 45 46 - 55 55 - and over Please indicate your approximate monthly household income Under TK10,000 TK10,001 - TK20,000 TK20,001 – TK30,000 TK30,001 – TK40,000 TK40,001 – TK50,000 TK50,000 and over Please indicate your approximate monthly expenditure on superstore TK0 – TK2,000 TK2,001 – TK5,000 TK5,001 – TK10,000 TK10,001 – TK15,000 TK15,001 – TK20,000 TK20,000 and over Please indicate how many times do you visit superstore a month? 0 to 5 6 to 10 11 to 15 More: ……… Are you a brand loyal? Yes No
  • 25. Are you satisfied with the service of super-store currently operating in the market? Give your opinion as per your importance level. Level of importance ___1___ ___2___ ___3___ ___4___ ___5___ Stores are well decorated Materials associated with this store's service (such as shopping bags, catalogs, or statements) are visually appealing. This store has clean, attractive, and convenient public areas (restrooms, fitting rooms). The store layout at this store makes it easy for customers to find what they need. The store layout at this store makes it easy for customers to move around the store. When this store promises to do something by a certain time, it will do so. This store performs the service right the first time. This store has stock available when the customers want it. This store insists on error-free sales transactions and records. Employees in this store have the knowledge to answer customers' questions. Employees in this store are never too busy to respond to customer's requests. This store gives customers individual attention. This store willingly handles returns and exchanges. When a customer has a problem, this store shows a sincere interest in solving it. Employees of this store are able to handle customer complaints directly and immediately.
  • 26. This store offers high quality stock. This store provides plenty of convenient parking for customers. This store has operating hours convenient to all their customers. This store accepts most major credit cards. Please rank the following factors (1 to 8) according to their relative importance while choosing a super-store: 1. Convenience _________________ 2. Cleanliness _____________ 3. Secured environment _____________ 4. Reasonable price ________________ 5. Higher quality __________________ 6. Appropriate weight ____________ 7. Product variety ______________ 8. Easy to pay ____________
  • 28. Dear Sir/Madam: I am a student of BBA, Eastern University. I am conducting a research on the Super store Industry in Bangladesh. All information collected will be kept confidential and used only for academic purpose. If you are over 18 years old and a regular customer of retail stores, we would greatly appreciate it if you complete this questionnaire. Thank you.
  • 29. Your gender__ Male Female What is your age? 18 - 25 26 - 35 36 - 45 46 - 55 55 - and over Please indicate your approximate monthly household income Under TK10,000 TK10,001 - TK20,000 TK20,001 – TK30,000 TK30,001 – TK40,000 TK40,001 – TK50,000 TK50,000 and over Please indicate your approximate monthly expenditure on superstore TK0 – TK2,000 TK2,001 – TK5,000 TK5,001 – TK10,000 TK10,001 – TK15,000 TK15,001 – TK20,000 TK20,000 and over Please indicate how many times do you visit superstore a month? 0 to 5 6 to 10 11 to 15 More: ……… Are you a brand loyal? Yes No
  • 30. Provides nutritional information about products Wide selection of national (local) brands Customized product offer Offers a variety of health and personal care products (Herbal product) Large selection of fruits and vegetables Please rank the following factors (1 to 8) according to their relative importance while choosing a super-store: 1. Convenience _________________ 2. Cleanliness _____________ 3. Secured environment _____________ 4. Reasonable price ________________ 5. Higher quality __________________ 6. Appropriate weight ____________ 7. Product variety ______________ 8. Easy to pay ____________
  • 31. We would like to find out what is most important to you in choosing a superstore. Below are a number of descriptors about superstores. Please select the answer that best expresses how important you think the factor is IN SELECTING A SUPERSTORE. Level of importance ___1___ ___2___ ___3___ ___4___ ___5___ Fast checkout (Speed of the service in cash counter) Exclusive food section Low priced specials (discount offers) Close to where you live (location) Offers coupons in newspaper ads Courteous, friendly employees Offers generic products (common food i.e. rice) Financial support (installment payment) Offers several brands of a product Convenience of parking Fresh fruits and vegetables Pharmacy facility in a store Wide selection of ethnic food i.e. pork meat for Hindus Open 24 hours Wide selection of store’s own brand Has bakery in the store
  • 32. Data
  • 33. Ranking Table as 2nd choice as 3rd choice as 4th choice as 5th choice as 6th choice as 7th choice as 8th choice as 1st choice Store Selection Total Value calculated for rank order Convenience 23 19 15 5 6 1 1 70 460 Cleaness 25 19 11 9 1 1 1 3 70 456 Secured E 10 14 15 5 6 11 2 7 70 361 Reasonable P 3 5 3 5 5 8 22 19 70 209 Higher Quality 3 4 10 14 12 13 8 6 70 291 Appropriate weight 2 3 8 16 20 10 5 6 70 291 Product variety 1 6 7 12 16 11 13 4 70 279 Easy to pay 2 1 5 4 15 18 25 70 169 * Here, Choice Assign Value 1st choice 8 2nd choice 7 3rd choice 6 4th choice 5 5th choice 4 6th choice 3 7th choice 2 8th choice 1 For example, if anyone give 'Easy to pay' as 1st choice then we counted he/she gave 8points to 'Easy to pay'
  • 34. Question1 Question2 Question3 Question4 Question5 Question6 Question7 Question8 Question9 Question10 Question11 Question12 Question13 Question14 Question15 Question16 Question17 Question18 Que Respondent1 5 4 2 4 4 4 3 4 3 2 4 4 4 5 5 4 1 4 Respondent2 4 4 4 5 4 4 3 4 5 3 4 4 3 4 4 4 4 4 Respondent3 5 4 3 4 4 3 3 5 4 4 3 2 3 4 4 3 3 4 Respondent4 4 4 4 5 3 4 4 2 4 4 5 3 4 3 4 4 4 5 Respondent5 5 3 3 5 4 4 3 4 4 4 3 4 4 5 3 5 3 4 Respondent6 4 3 4 4 3 4 5 4 4 4 5 4 2 5 3 5 4 4 Respondent7 4 3 4 3 4 4 3 4 4 4 3 4 3 3 4 4 4 4 Respondent8 5 5 5 4 4 4 3 4 4 3 4 3 5 5 4 4 4 4 Respondent9 4 5 4 5 4 5 5 4 5 5 5 4 5 3 4 5 4 5 Respondent10 3 3 4 5 5 3 4 2 4 5 4 4 1 2 2 2 2 3 Respondent11 4 3 4 4 5 3 3 4 5 3 5 4 5 5 3 4 4 5 Respondent12 4 3 3 4 5 3 4 4 2 3 4 4 5 4 4 4 4 5 Respondent13 5 4 5 5 5 3 4 5 4 5 5 5 5 5 5 5 4 5 Respondent14 3 4 2 4 1 1 3 5 5 3 5 4 5 5 5 4 5 5 Respondent15 4 4 2 4 3 4 3 4 4 5 4 5 3 4 5 4 4 4 Respondent16 4 4 4 4 3 3 3 4 4 3 3 3 3 3 3 5 4 3 Respondent17 4 4 4 3 5 4 4 3 5 2 4 3 4 4 3 4 2 5 Respondent18 5 4 4 4 2 4 4 3 4 3 4 4 4 3 4 4 4 4 Respondent19 5 4 3 4 4 4 3 5 3 4 3 4 4 3 4 4 3 4 Respondent20 5 3 4 4 5 3 3 4 5 4 4 2 3 4 4 5 3 4 Respondent21 4 4 3 4 3 4 4 5 5 3 3 4 4 3 4 4 3 4 Respondent22 4 3 4 4 3 4 3 4 5 3 4 4 3 4 4 5 4 4 Respondent23 4 4 4 3 3 4 4 4 4 2 3 3 3 3 4 4 3 4 Respondent24 4 3 4 4 4 3 2 4 5 4 2 2 2 3 3 5 3 4 Respondent25 4 3 4 4 3 4 3 3 4 2 4 3 3 4 4 5 3 4 Respondent26 4 4 2 3 4 2 3 4 3 4 4 3 1 3 3 4 3 5 Respondent27 4 4 3 4 3 4 4 4 4 3 3 3 3 5 4 5 4 4 Respondent28 4 3 3 5 3 3 4 4 4 3 4 5 4 5 3 4 2 4 Respondent29 5 4 4 3 3 4 4 4 4 2 4 2 3 5 4 5 3 4 Respondent30 5 4 3 5 5 5 5 5 5 4 4 4 3 2 4 3 5 5 Respondent31 5 5 4 5 5 4 5 5 5 4 4 4 1 4 4 5 3 5 Respondent32 3 4 2 4 2 1 3 5 5 3 5 4 5 4 4 5 5 4 Respondent33 5 4 4 4 2 4 4 5 4 2 4 4 3 4 4 4 3 5 Respondent34 4 4 3 4 3 4 3 4 4 5 4 5 3 4 5 4 4 4 Respondent35 3 4 1 4 3 4 5 2 3 3 5 4 5 5 4 3 3 5 Total 148 132 120 144 126 125 126 140 146 120 138 128 121 137 135 148 121 150 Level of satisfaction 4.23 3.77 3.43 4.11 3.60 3.57 3.60 4.00 4.17 3.43 3.94 3.66 3.46 3.91 3.86 4.23 3.46 4.29 Out of FIVE Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Su Five = 12 Five = 3 Five = 2 Five = 9 Five = 8 Five = 2 Five = 5 Five = 9 Five = 12 Five = 5 Five = 8 Five = 4 Five = 8 Five = 11 Five = 5 Five = 13 Five = 3 Five = 12 Fiv Four = 19 Four = 21 Four = 18 Four = 21 Four = 10 Four = 21 Four = 12 Four = 20 Four = 18 Four = 11 Four = 18 Four = 19 Four = 8 Four = 12 Four = 21 Four = 18 Four = 15 Four = 21 Fo Three = 4 Three = 11 Three = 9 Three = 5 Three = 13 Three =9 Three = 17 Three = 3 Three = 4 Three = 13 Three = 8 Three = 8 Three = 14 Three = 10 Three = 8 Three = 3 Three = 13 Three = 2 Th Two = 5 Two = 3 Two =1 Two =1 Two = 3 Two = 1 Two = 6 Two = 1 Two = 4 Two = 2 Two = 2 Two = 1 Two = 1 Two = 3 One = 1 One = 1 One = 2 One = 3 One = 1
  • 35. Satisfaction trend of consumers 5.00 4.50 4.00 3.50 Satisfaction level 3.00 2.50 2.00 1.50 1.00 0.50 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Question no
  • 36. Question1 Question2 Question3 Question4 Question5 Question6 Question7 Question8 Question9 Question10 Question11 Question12 Question13 Question14 Question15 Question16 Question17 Question18 Question19 Respondent36 4 3 4 5 3 4 2 1 4 2 4 1 2 4 4 3 4 3 5 Respondent37 4 4 4 4 4 4 4 1 5 5 5 5 3 5 3 1 5 3 4 Respondent38 4 3 5 4 4 4 5 1 4 5 5 3 2 5 4 3 5 3 4 Respondent39 4 3 4 4 2 4 4 3 4 4 4 4 3 4 3 4 4 3 3 Respondent40 5 3 2 5 2 5 5 5 3 5 2 4 2 5 5 4 5 4 3 Respondent41 3 4 3 5 3 4 3 1 3 5 4 3 2 4 1 3 1 3 2 Respondent42 4 4 1 4 1 4 3 1 4 4 2 1 1 4 1 3 1 2 1 Respondent43 5 3 4 5 3 4 2 5 4 4 3 3 2 5 4 2 5 3 4 Respondent44 4 3 5 5 3 4 4 2 5 4 4 3 2 3 3 3 4 5 3 Respondent45 5 4 2 3 4 5 3 4 4 4 4 4 3 4 4 4 3 4 4 Respondent46 3 3 4 4 2 5 5 2 5 4 5 3 3 4 5 3 4 5 3 Respondent47 4 1 4 5 1 4 1 1 4 4 4 3 5 2 3 4 2 4 1 Respondent48 5 3 3 5 2 3 3 4 3 4 2 4 5 5 4 2 3 4 4 Respondent49 1 3 3 5 1 4 3 1 5 1 4 1 1 5 3 5 5 4 2 Respondent50 5 5 3 5 4 5 4 5 5 4 5 4 4 2 4 4 4 3 4 Respondent51 5 3 3 5 1 5 5 1 5 5 5 3 5 3 3 3 3 5 5 Respondent52 5 3 3 5 2 5 3 5 4 4 3 4 2 5 4 4 5 4 2 Respondent53 2 3 3 5 3 5 5 3 4 4 5 5 3 3 4 5 2 4 4 Respondent54 5 1 5 5 4 5 5 4 5 5 5 5 1 5 3 4 5 3 5 Respondent55 5 3 3 5 3 4 4 3 3 5 5 3 1 5 5 3 4 3 5 Respondent56 3 4 2 5 2 4 5 2 4 5 5 4 2 3 4 4 3 3 3 Respondent57 4 5 2 3 2 4 5 4 5 5 5 3 4 3 5 4 3 4 3 Respondent58 4 5 3 4 3 5 5 4 5 4 5 3 5 4 5 3 4 5 3 Respondent59 4 3 5 5 2 5 5 1 5 5 5 4 2 3 4 3 3 4 3 Respondent60 3 4 4 5 3 4 5 2 4 4 5 5 3 3 3 3 4 4 4 Respondent61 4 4 3 4 3 5 5 4 5 5 5 3 1 1 3 3 4 5 3 Respondent62 4 2 4 5 1 4 4 1 5 5 5 4 1 3 3 3 4 4 3 Respondent63 5 4 3 5 3 4 5 2 5 5 5 3 3 3 3 3 5 5 5 Respondent64 4 3 5 5 3 5 5 4 4 3 5 3 2 2 3 3 4 4 5 Respondent65 5 5 3 5 4 5 4 2 5 5 5 3 1 2 3 4 4 4 4 Respondent66 5 1 5 5 4 5 4 3 5 5 5 2 1 4 3 4 5 3 5 Respondent67 5 3 1 5 1 5 4 4 4 5 3 4 1 5 3 4 4 5 3 Respondent68 4 5 5 5 2 5 4 3 3 4 3 3 4 4 2 1 3 2 2 Respondent69 3 3 4 4 2 5 4 2 5 4 5 3 2 3 3 2 4 4 4 Respondent70 3 3 5 5 1 4 4 4 5 4 5 4 2 3 3 3 3 4 4 Total 142 116 122 163 88 156 141 95 152 150 151 117 86 128 120 114 131 132 122 Level of importance 4.06 3.31 3.49 4.66 2.51 4.46 4.03 2.71 4.34 4.29 4.31 3.34 2.46 3.66 3.43 3.26 3.74 3.77 3.49 Out of FIVE Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Summary Five = 13 Five = 5 Five = 8 Five = 25 Five = 17 Five = 14 Five = 4 Five = 17 Five = 16 Five = 21 Five = 4 Five = 4 Five = 10 Five = 5 Five = 2 Five = 9 Five = 7 Five = 7 Four = 14 Four = 8 Four = 9 Four = 8 Four = 7 Four = 17 Four = 12 Four = 9 Four = 13 Four = 16 Four = 7 Four = 11 Four = 3 Four = 9 Four = 10 Four = 12 Four = 14 Four = 15 Four = 11 Three = 6 Three = 18 Three = 12 Three = 2 Three = 11 Three = 1 Three = 6 Three = 5 Three = 5 Three = 1 Three = 4 Three = 16 Three = 7 Three = 11 Three = 17 Three = 16 Three = 8 Three = 11 Three = 11 Two = 1 Two = 1 Two = 4 Two = 10 Two = 2 Two = 7 Two = 1 Two = 3 Two = 1 Two = 12 Two = 4 Two = 1 Two = 3 Two = 2 Two = 2 Two = 4 One = 1 One = 3 One = 2 One = 7 One = 1 One = 10 One = 1 One = 3 One = 9 One = 1 One = 2 One = 2 One = 2 One = 2
  • 37. Trends of consumers' importance level 5.00 4.50 4.00 3.50 Level of importance 3.00 2.50 2.00 1.50 1.00 0.50 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Question no
  • 38. Gender Age Income Expenditure No.of visit Brand loyal Respondent1 F D C D B N Respondent2 F B C D C Y Respondent3 M D C B A N Respondent4 M D D D B Y Respondent5 F B C C B N Respondent6 F D D E C Y Respondent7 M A B B A Y Respondent8 F C D B C Y Respondent9 F C C B A N Respondent10 M B C B A N Respondent11 F B E B B N Respondent12 F B D B B Y Respondent13 F B F F B N Respondent14 F C D D B Y Respondent15 F C E D A Y Respondent16 F C D C C N Respondent17 M D D D B Y Respondent18 M B C B A Y Respondent19 F B C C B Y Respondent20 F C C C B N Respondent21 F B F F C N Respondent22 F A B B B Y Respondent23 M B C B A Y Respondent24 M D F F B N Respondent25 M D F E B Y Respondent26 F D E E B Y Respondent27 F D E D B Y Respondent28 M B C B A Y Respondent29 F C F F B Y Respondent30 F C F E A Y Respondent31 F C F F B Y Respondent32 F C E D B Y Respondent33 F C F F B Y Respondent34 F C E D B Y Respondent35 F D E B A Y Respondent36 M B C A A N Respondent37 F B F C C Y Respondent38 F B F D C Y Respondent39 F B D E B Y Respondent40 M E F F D Y Respondent41 M B F C A N Respondent42 M C D B A Y Respondent43 F B F F C Y Respondent44 M E D B A N Respondent45 F B E E D Y Respondent46 M D C B A Y Respondent47 F D C C B Y Respondent48 F C D C D Y Respondent49 M E F F D N Respondent50 F B D C B N Respondent51 M B B E A Y Respondent52 F B E F C Y Respondent53 F B C C B Y Respondent54 M C D C C Y Respondent55 F C D E A N Respondent56 F B B B B N Respondent57 F C C C B N Respondent58 M B C C B Y Respondent59 F E C C B N Respondent60 F B C C B Y Respondent61 M B B B A Y Respondent62 F D C C C Y Respondent63 F B E E D Y Respondent64 F C B B B N Respondent65 F B E C B N Respondent66 M C D B B N Respondent67 F B C C A N Respondent68 M A A A B Y Respondent69 M D C B A Y Respondent70 F B B B B N * Here, * Here, * Here, * Here, * Here, * Here, M = Male A = 18 - 25years A = Under TK10,000 A = TK0 – TK2,000 A = 0 to 5 times Y = Yes F = Female B = 26 - 35years B = TK10,001 - TK20,000 B = TK2,001 – TK5,000 B = 6 to 10times N = No C = 36 - 45years C = TK20,001 – TK30,000 C = TK5,001 – TK10,000 C = 11 to 15times D = 46 - 55years D = TK30,001 – TK40,000 D = TK10,001 – TK15,000 D = More: ……… E = 55 - and over E = TK40,001 – TK50,000 E = TK15,001 – TK20,000 F = TK50,000 and over F = TK20,000 and over
  • 39. Age A(18-25) B(26-35) C(36-45) D(46-55) E(55+) Income A(10-) B(11-20) C(21-30) D(31-40) E(41-50) (50+) Expenditure A(0-2000) B(2001-5000) C(5001-10000) D(10001-150000) E(15001-20000) F(20000+)
  • 41. Chi-Square Testing Contingency Table Men Women Awareness of Observed Expected Observed Expected Brand Value Value Value Value TOTAL Aware 17 15.77 29 30.23 46 Unaware 7 8.23 17 15.77 24 70 Expected (Theoretical) Value Computation Awareness of Brand Men (N1) Women (N2) Total Aware (N1) 17 29 46 Unaware (N2) 7 17 24 24 46 70 Expected value Expected value Cell N11 (46) * (24) / 70 = 15.77 Cell N12 (46) * (46) / 70 = 30.23 Expected value Expected value Cell N21 (24) * (24) / 70 = 8.23 Cell N22 (24) * (46) / 70 = 15.77 χ² Computation Fo Fe Fo - Fe (Fo - Fe)² (Fo - Fe)² / Fe 17 15.77 1.23 1.513 0.096 29 30.23 -1.23 1.513 0.05 7 8.23 -1.23 1.513 0.184 17 15.77 1.23 1.513 0.096 χ² = 0.426 DOF = (2 - 1) * (2 - 1) = 1 Critical value of χ² with 1 DOF = 3.841 (considering α = 0.05)
  • 42. Ho: Brand Awareness is independent of respondent’s sex. Result: Calculated value of χ² (0.426) is less than the critical value of χ² (3.841). Thus, we do not reject the null hypothesis. Conclusion: Men and women are equally aware of Brand. Acceptance region Accept the null hypothesis if the sample value is in this region Chi-square distribution with 1 degree of freedom 0.05 of area 3.841 0.426
  • 43. Z-test Computation Confidence level n = 35 ⎯x = 3.85 s = 0.236 Se = 0.04 = 95 % µ = 3.90 s² = 0.056 3.85 - 3.9 Ho: µ = 3.9 z critical value = 1.96 z= = -1.25 0.04 H1: µ < 3.9 Detailed Calculation I II III IV x ⎯x x - ⎯x (x - ⎯x)² 4.23 3.85 0.38 0.1444 3.77 3.85 -0.08 0.0064 3.43 3.85 -0.42 0.1764 4.11 3.85 0.26 0.0676 3.6 3.85 -0.25 0.0625 3.57 3.85 -0.28 0.0784 1.8921 s² = = 0.056 3.6 3.85 -0.25 0.0625 34 4 3.85 0.15 0.0225 4.17 3.85 0.32 0.1024 √0.056 Se = = 0.04 3.43 3.85 -0.42 0.1764 √35 3.94 3.85 0.09 0.0081 3.66 3.85 -0.19 0.0361 3.46 3.85 -0.39 0.1521 3.91 3.85 0.06 0.0036 3.86 3.85 0.01 0.0001 4.23 3.85 0.38 0.1444 3.46 3.85 -0.39 0.1521 4.29 3.85 0.44 0.1936 4.4 3.85 0.55 0.3025 ⎯x = 73.12 / 19 = 3.85 ∑(x - ⎯x)² = 1.8921
  • 44. 0.475 0.025 0.475 Critical z value = -1.96 0 -1.25 = calculated value of z Ho: Overall satisfaction level, µ = 3.9 H1: Overall satisfaction level, µ < 3.9 Result: The calculated value of z falls within the accepted region as seen in the picture. Conclusion: There is no enough reason to reject the null hypothesis.
  • 45. Regression Analysis X Y X² Y² XY 1 2 1 4 2 7 21 49 441 147 22 18 484 324 396 15 10 225 100 150 11 9 121 81 99 14 10 196 100 140 ⎯X = 11.67 ⎯Y = 11.67 ∑X² = 1076 ∑Y² = 1050 ∑XY = 934 b = 0.452 a = 6.388 r = 0.477 Se = 6.721 Regression Chart 25 20 2 R = 0.2275 15 Expenditure 10 5 0 0 5 10 15 20 25 Income
  • 47. Book: 1. Business Research Methods by William G. Zikmund, 8/e 2. Statistics for Management by Rochard I. Levin and David S. Rubin, 7/e Articles: 1. Journal of Business Studies, Vol. XXVI, No. 1, June 2005