Rmt Report final

8/14/2019 Rmt Report final

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RESEARCH METHODS AND TECHNIQUES REPORT

BAHRIA UNIVERSITY KARACHI CAMPUS 1

Letter of Transmittal

May 26, 2008

Mr. Ch. Sohail

Research Methods and Techniques

Bahria University

Karachi.

Dear Sir,

Here is the report based on Why are supermarkets preferred over small retail stores, which

you had authorized and is ready for your perusal.

Through this report weve got a chance to learn a lot about the customer preferences at

supermarkets and what are the basic factors due to which they prefer shopping from the

superstores rather than the retail stores

If there be any clarification demanded, we would appreciate a call from you to our group

members.

Sincerely,

Ahsan Faheem (10020)

Maaz Khalid (9981)

M. Usman Badar (9992)


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Acknowledgements

All praise is to Allah who makes everything possible in the universe and beyond.

First of all, we would like to thank Allah, who helped us with everything and made everything

come together, then our parents and family who have always supported us in every good thing

that we do.

We are greatly thankful to our course instructor for Research Methods and Techniques, Mr. Ch

Sohail, who provided us clear concepts and a strong foundation of understanding for the

subject. He made the course a valuable learning experience for all of us and made us grow as

learned individuals. We would also like to thank our University; The Bahria University has been

a great learning place with different academic and extra-curricular experiences, all contributing

to our growth as students.

Lastly we would like to thank our fellow classmates for making this learning experience a

thoroughly productive and enjoyable one.

Hopefully this report will serve a good purpose.

Thank you,

Ahsan Faheem (10020)

Maaz Khalid (9981)

M. Usman Badar (9992)


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Introduction

Retailing in Pakistan:

Retailing in Pakistan, and for that matter in most of the Third World Countries, has traditionally been a

small scale business, meant mainly for small and less or not educated entrepreneurs. Till late sixties,

large scale retailing institutions like Super Markets, Departmental Stores and Discount Houses were

unheard of in Pakistan.

However, utility Store and canteen stores Department, a type of mini super markets, are functioning

since the time of independence; but these stores were mutual benefit stores for service of government

servants and Defense Services personnel respectively.

In late sixties, in Lahore, a super market chain with the name of COOP stores was introduced. The CSD

still remains a mutual benefit store but utility stores have been opened to general public. The chain of

COOP store of Lahore was later taken over by Utility Stores Corporation of Pakistan.

In the rural areas of Pakistan, the retailing still follows the same traditional "HUTTI' system small

shops which provide very necessary daily use items to the villagers from available stores. These days

almost all grocery items, cosmetics, vegetable ghee, and other essential items including shelf medicines

are available on HUTTIES, but back in fifties rather till late in sixties very few items could be procured

from these HUTTIES.

In the urban areas of Pakistan, almost all types of related outlets exist. The introduction of sector wiseplanned markets in the newly planned modern city of Islamabad the capital, gave new dimensions to

modern retailing in Pakistan. Thereafter almost in all other cities and new towns of Pakistan, where a

new residential locality had to be developed, special emphasis was given to plan retail markets in a

proper way.

The main retail urban outlets are:

Small retailers

Large retailers/ wholesale retail stores

Department stores

Super markets Utility stores

Cooperative stores

Medical & general stores

Specialty stores

Friday, Tuesday or Sunday Bazaars


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Small Retailers:

These are very similar to HUTTIES found in the rural areas of the country. Normally these types of stores

are located in suburbs of the cities and towns and take care of the demands and requirements of the

people living in that area.

Super Markets:

A supermarket is a departmentalized food store. Pakistan entered the super market era at a time when

some western European countries were moving from super market to 'Hyper mart'. The first

supermarket in Pakistan was opened at Karachi in 1968. During last 27 years quite a few of them have

sprung up, but most of these are more like mini super markets rather than full fledged supermarketswith intensive and extensive product mix. Even food items like meat, fresh fruits, are not available withmost of them.

Role of Supermarkets:

Supermarkets simply meet the needs of consumers as cost effectively as possible, while acting within

the bounds of ever-extending legislation, therefore in large part their behavior simply reflects the

desires of consumers and government. Larger retailers do exert significant "buyer power" which can be

destructive, more carefully thought out rules on Trade Justice and allowable ethics in international trade

could well reduce this. Recent consumer interest in Fair Trade has lead to a "rush to Fair Trade" by many

retailers and supermarkets which is welcomed, but there is no saying whether it will last or not, assupermarkets will always be ready to throw fair trade products out of the door to replace them with

products that meet the needs of the next wave of consumer interest.

Despite the low purchasing power of the majority of Pakistani consumers, multinational

companies dominate sales in the household care market. This is because those consumers who

do buy household care products are affluent enough to afford the goods offered by foreign

multinationals, which they buy through supermarkets and hypermarkets in urban areas. The

multinationals also benefit from the perceived higher quality of their goods, and the lack of

domestic competitors. This is underpinned by their capacity to invest more in advertising and

promotional campaigns aimed at boosting consumer awareness of their products


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Global retailers eye on Pakistani market:

Pakistan's economy is yet in its infancy when compared to the role, scope and impact of retailing giants

of the developed world. Retailing is about the economies of scale. It is not the per unit profit on

merchandize, but the profit on volume and the time span within which it is made; that is at the core of

the retailing. The reasons for retailers from the developed world to set up stores in developing countries

are apparent. The home turf represents mature markets where scope for expansion is restricted. While

immensity of scale, size, space and number of products offered for sale are the salient features of

modern retailing, the key to success lies in economies of scale in purchasing and selling the goods.

For developing countries like Pakistan, retailing in the afore-depicted sense is a matter of time. With

world-wide progressive applicability of the regulations and procedures of WTO, rising incomes creating

urban middle class in developing countries, emergence of mass marketing retailing outlets as entirely

foreign-owned or as joint-ventures with local entrepreneurs appears to be inevitable.

Benefits of such retailing are immense for the consumer, with generally assured quality of products and

competitiveness of prices. Retailing has the potential to be a boon for the consumers, provided state

institutions act as regulators with imbibed sense of integrity.

Mass consumer marketing can generate massive economic benefits both for the operator, nativemanufacturers of the products as well as for the consumers and social benefits for the community and

the economy at large.

It can be a great impetus not only for commerce but also for the manufacturing sector to observe

discipline, integrity and commitment as to the standards and norms of respective products to open up

foreign markets via the retailer.


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Research Process at a Glance

Our research was based on several steps and through an entire process we have concluded certainresults. The research process included the following steps:

At the initial stages we had an idea of growing trends of supermarkets in Pakistan. We realized that this

was being seen as a problem for some and an opportunity for the others.

To gain more knowledge and to have a clearer picture we decided to conduct an exploratory research.

The initial research was conducted in terms of secondary research where articles on the internet and

magazines were viewed which confirmed the increased trend of supermarkets and highlighted why

people preferred going to supermarkets. The details of the exploratory research have been mentioned

in the research proposal.

Next step in the research process was to conduct various focus groups so that we have an idea about

the general opinion of different people and what do they have to say about the increasing trends of

supermarkets and also to gain their suggestions about the current scenario of supermarkets. One of our

aims was also to know the peoples opinion about the changes they would want to see in the

supermarkets in the future. These focus groups provided us with a conclusion highlighting various

factors as to why people prefer going to supermarkets over retail stores.

Exploratory research helped us find out the alternatives and other concepts as to why people preferred

going to supermarkets then small retailer shops .which helped making research objectives and research

questions and helped us framing our questions for the questionnaire. The initial research helped us to

create our mega hypotheses.

We then decided that our sampling unit will be households and sampling element will be individuals in

the household who went to supermarkets, this defined our target population. Then we decided that non

probability sampling will be done due to cost /time constraints. We did the convenience sampling .and

got our questionnaires filled.

When the questionnaires were filled we did editing and coding .Editing in terms of finding out what

people wrote in open ended blanks to rectify them and coding was done for further tabulation of the

data.

After tabulation we started the work of hypothesis testing. We short listed the questions for the

purpose of hypothesis testing .we had a predetermined error of 2% which helped us prove ourhypothesis and made us come to our conclusion which you will see in the report along with the

hypothesis testing.


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R

RESEARCH METHODS AND TECH

BAHRIA UNIVERSITY KARACHI

Exploratory Research

Setting Research objectives and

designing research questions

Focus Group

Survey: Getting Questionnaires

filled

Tabulation of Data: entry,coding and editing

Hypotheses testing

Conclusion

esearch Process

NIQUES REPORT

AMPUS 7


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Background

In Pakistan the retail and wholesale business accounts for over 25 per cent of the GDP with the share of

trading even bigger than the manufacturing sector. According to the latest Pakistan Economic Survey,

the sector is growing at the rate of 9.9 per cent.

Some European retail chains have shown interest in Pakistan. A German retail giant, the Macro has

entered into Karachi market. A few other retail firms are said to be in the process of entering into

Pakistani market. So far the Wal-Mart name has not come up on the list of companies aspiring to enter.

It is estimated that in 2002, about 6.8 million of the 50 million people living in urban Pakistan belonged

to the upper and uppermiddle class, and represented a grocery market worth $1.7 billion. This

segment, projected to grow to 17 million people by the year 2010, is expected to be the first to switch to

modern retail stores.

Purpose of the research:

The purpose of the research is to find out various reasons for peoples preference to shop in

supermarkets rather than small retail shops. This of course is an opportunity for people wanting to open

supermarkets in the future.

Research Objectives:

1. The objective of this report is to analyze the extent of consumer preference for superstores.

2. To determine which reason dominates or stands out the most for consumers preference for

superstores

3.

To determine what other services can be added in supermarkets which consumers would prefer.4. To find the future of supermarkets in Karachi.

Research design:

Research methods employed were:

1. Exploratory research

2. Descriptive research


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Exploratory research

We have conducted exploratory research in terms of secondary data to clarify the purpose/problem of

the research.

For many customers these supermarkets are really best place to visit for shopping. "You find almost

everything under one roof and that also on reasonable rates," says Amjad Hussain, a resident of walled

city and a regular visitor of Makro, superstore at Ravi Road, Lahore. He gives many reasons for coming

to this place to shop. "The staff is very customer friendly, the store is really big and you can bring family

with you. You will face no problems regarding parking of your vehicle, you can carry shopped goods

through shopping trolleys direct to your vehicle and contrary to most other such Pakistani stores thereare even washrooms for customers," Other shopping-stores, even retailers now need to provide such

facilities to customer if they want to remain in competition with such big shopping stores, he says.

According to Agri-Food Past, Present & Future Report of Pakistan in August 2005 prepared by

government of Canada .Supermarkets are increasing in popularity and currently account for 10% of

retail food sales. Modern retail formats, notably supermarkets/hypermarkets and convenience stores,

are expanding across Pakistan and giving rural and urban consumers access to a considerably wider

selection of goods and services. Also factors like continued migration of rural consumers to urban areas

in search of work and an improved standard of living and the number of Pakistanis returning to the

country having worked abroad will also fuel growth of urbanization. These factors will be underpinned

by the increased penetration of supermarkets and hypermarkets in urban Pakistan, which will be able to

offer consumers a wide range of modern, convenient products at highly competitive prices. Throughout

the country consumers will continue to demand basic household care products they know to be

effective, demonstrating little interest in the short to medium term in highly advanced and expensive

products or formats.

Through secondary data we have found that supermarkets are being preferred and increasing in number

throughout Pakistan.

Descriptive research:

After doing exploratory research we further have done descriptive research to know what makes people

prefer supermarkets over small retail outlets and to do so under descriptive research method, surveyswill be used to gather primary source data. The questionnaire is attached in the appendix.


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0

2

4

6

8

10

12

14

16

Analy

Q1. How often do you go for shop

a. Daily

b. Weekly

c. Twice a month

d. Once a month

e. Any Other periodicity (ple

OPTIONSDaily

Weekly

Twice a Month

Once a Month

Others

Total



Visiting Frequency

Daily

Weekly

Twice a m

Once a Mo

Others

sis of Questionnaire

ing to supermarkets?

se specify)_______________________

RESULTS PERCENTAGE06 12%

15 30%

14 28%

15 30%

0 0%

50 100%

NIQUES REPORT

AMPUS 10

nth

nth


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0

2

4

6

8

10

12

14

16

18

Q2. Which supermarket(s) do you

a. Aghas super market

b. Naheed supermarket

c. Imtiaz

d. Makro

e. Other (please specify)___

OPTIONS

Aghas

Naheed

Imtiaz

Makro

Others

Total



Visiting Frequency

Agha's

Naheed

Imtiaz

Macro

Others

usually visit for shopping?

_______________________________

RESULTS PERCENTAGE

11 22%

08 16%

09 18%06 12%

16 32%

50 100%

NIQUES REPORT

AMPUS 11


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0

5

10

15

20

25

Incom

Q3. Please specify the range of yo

a. Less than Rs. 25000

b. Rs. 25001-50000

c. Rs. 50001-75000

d. More than Rs. 75001

OPTIONS

Less than Rs 25000

Rs 25001-50000

Rs 50001-75000

More than 75000

Total



Level in Rs.

Less than 25000

25001-50000

50001-75000

More than 75000

r TOTAL MONTHLY family income:

RESULTS PERCENTAGE

7 14%

7 14%

6 32%

0 40%

0 100%

NIQUES REPORT

AMPUS 12


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0

2

4

6

8

10

12

14

16

18

Q4. How far is the supermarket fr

a. Walking distance(< 5 minut

b. 5-10 minutes drive

c. 11-20 minutes drive

d. More than 20 minutes driv

OPTIONS

Walking Distance

5-10 mins

11-20 minsMore than 20 mins

Total



Distance

Walking Distance

5-10 Minutes

11-20 Minutes

More than 20 Minute

m your home?

es)

RESULTS PERCENTAGE

07 14%

16 32%

15 30%12 24%

50 100%

NIQUES REPORT

AMPUS 13

s


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0

5

10

15

20

25

30

Q5. Will you still go to supermarke

a. Yes

b. No

c. Maybe/ Dont know

OPTIONS

Yes

No

Maybe

Total



Yes

No

Maybe

t even if it is not near your home?

RESULTS PERCENTAGE

26 52%

12 24%

12 24%

50 100%

NIQUES REPORT

AMPUS 14


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15.4

15.6

15.8

16

16.2

16.4

16.6

16.8

17

17.2

Q6. Would you like to have home

a. Yes

b. No

c. Maybe, sometimes

OPTIONS

Yes

NoSometimes

Total



Home Delivery

Yes

No

Sometime

elivery service?

RESULTS PERCENTAGE

16 32%

17 34%17 34%

50 100%

NIQUES REPORT

AMPUS 15


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0

5

10

15

20

25

Time

Q7. On an average how much time

a. Approximately 1 hr

b. 1 hrs to 2 hrs

c. 2.01 hrs to 3 hrs

d. >3hrs

OPTIONS

Approx 1hr

1.01-2 hr

2.01-3 hr

More than 3hr

Total



Spend Durring Shopping

Approx 1hr

1.01-2hr

2.01-3hr

More than

do you spend shopping in supermarkets?

RESULTS PERCENTAGE

21 42%

21 42%

05 10%

03 06%

50 100%

NIQUES REPORT

AMPUS 16

hr


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0

2

4

6

8

10

12

14

16

18

Q8. At what time usually you pref

a. Pre-noon

b. Afternoon

c. Evening

d. Night

e. Late night

OPTIONS

Pre-Noon

AfternoonEvening

Night

Late Night

Total



Preference of Time

Pre-Noon

Afternoon

Evening

Night

Late Night

r going to supermarkets?

RESULTS PERCENTAGE

06 12%

10 20%17 34%

12 24%

5 10%

50 100%

NIQUES REPORT

AMPUS 17


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Q9. Rate how much importance you give to the different aspects in supermarkets.

(On a scale of 1-5, 5 is the most important and 1 is the least important)

a. Location

b. Variety

c. Price

d. Environment in general

e. Car parking space

f. Deals/Discounts you get

g. Choosing product yourself

h. Status symbol

i. More space to walk around

j. Service provided by sales forcek. One stop shop

l. Cleanliness

Options Rating Scale

1 2 3 4 5

A 1 4 0 17 28B 0 0 7 9 34

C 2 0 5 16 27

D 1 6 20 15 8

E 1 1 0 16 32

F 11 1 2 28 8

G 0 3 4 14 29

H 23 5 3 9 10

I 3 4 9 20 14

J 19 12 4 8 7

K 0 13 8 18 11

L 0 1 3 12 34


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0

5

10

15

20

25

30

35

Q10. Do the supermarkets you visi

a. Yes

b. No

c. Dont care

OPTIONS

Yes

No

Dont Care

Total



Friendly Sales Force

Yes

No

Don't Care

t have helpful and friendly sales force?

RESULTS PERCENTAGE

32 64%

11 22%

07 14%

50 100%

NIQUES REPORT

AMPUS 19


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0

5

10

15

20

25

30

35

Q11. Would you like all the emplo

a. Yes

b. No

c. Dont care

OPTIONS

Yes

No

Dont Care

Total



Dress Code

Yes

No

Don't Care

ees in supermarkets to have a specific dress code

RESULTS PERCENTAGE

29 58%

10 20%

11 22%

50 100%

NIQUES REPORT

AMPUS 20

?


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0

5

10

15

20

25

30

35

Q12. Would you like to be served

a. Yes

b. Maybe

c. No

OPTIONS

Yes

May Be

No

Total



Yes

May Be

No

everages while shopping?

RESULTS PERCENTAGE

20 40%

19 38%

11 22%

50 100%

NIQUES REPORT

AMPUS 21


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0

5

10

15

20

25

Preferen

Q13. Would you prefer some child

a. Strongly Agree

b. Agree

c. Disagree

OPTIONS

Strongly Agree

Agree

Disagree

Total



ce For Clildren Playing Area

Strongly Agree

Agree

Disagree

ren playing area to be made?

RESULTS PERCENTAGE

15 30%

22 44%

13 26%

50 100%

NIQUES REPORT

AMPUS 22


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Hypothesis Testing

Mega Hypothesis:

Ho: People prefer super markets over retail stores

Ha: people do not prefer super markets over retail stores.

Hypothesis# 1

Ho: At least 60% people prefer to go to supermarket even if it is far from there home.

Ha: Less than 60% people prefer to go to supermarket even if it is far from there home.

Level of significance:

= 1%

2 6 = 30

Ztab= -2.33

Zcalc =

. 1.156

Zcalc= -1.156

Conclusion:

We see that the value of test statistic does not fall in the critical region hence we can not reject our H0.

The data provide sufficient evidence to conclude that super markets are preferred over retail stores

even if supermarket is far from there place.


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Hypothesis# 2

Ho: There is no relation between Number of visit to supermarket and income level.

Ha: There is relation between Number of visit to supermarket and income level.

Level of significance:

= 1%

v = (nc-1) (nr-1)

v = 12

Less than

25000

25001-

50000

50001-

75000More than

75001Total

Daily 0 0 01 05 06

Weekly 01 03 03 08 15

Twice a Month 04 02 05 03 14

Once a Month 02 0 07 06 15

Other Period 0 0 0 0 0

Total 07 05 16 22 50

Computation:

7 650 0.84 7 1 550 2.1

7 1 4

50 1.96

7 1 550 2.1 7 050 0 5 650 0.6 5 1 550 1.5 5 1 450 1.4

5 1 5

50 1.5

5 050 0 1 6 650 1.92


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161550 4.8

161450 4.48 161550 4.8 1 6 050 0 2 2 650 2.64 221550 6.6 221450 6.16

2215

50 6.6 2 2 050 0

Formula:

Computation:

13.668

X2tab= 26.217

X2calc=13.66

Conclusion:

We see that the value of test statistic falls outside the critical region hence we can accept our Ho.

There is no relation between Number of visit to supermarket and income level.


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Hypothesis# 3

Ho: At most 8 people on average preferred to go to supermarket.

Ha: More than 8 people on average preferred to go to supermarket.

Ha: 8

Ho: > 8

Z = Z0.01 = 2.33

Zcalc =

=10

.

Zcalc = 3.25

Conclusion:

We see that the value of test statistic falls in the critical region hence we can reject our H0.

More than 8 people on average preferred to go to supermarkets.


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Conclusion

After doing the hypotheses testing we have concluded the following results:

1. The number of visits made to supermarkets is dependent on the income of the people.

2. People generally prefer supermarkets over retail stores because of deals and discounts

they get.

3. People also prefer super markets over retail stores because of the price factor.

4. Super markets are preferred over retail stores more because of variety as compared to

location.

5. Super markets are preferred over retail stores because of convenient parking.

All the results obtained from our sub-hypotheses as mentioned above helped us to prove our

mega hypotheses. Most of our respondents belonged to the income group of Rs.50,000 and

above, therefore we conclude that people from higher income bracket prefer superstores over

small retail stores.


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Recommendations

Our recommendations are as follows:

1. Superstores should also consider car parking space as an important way to attract more

customers.

2. We recommend to the supermarkets that their employees should have a specific dress

code.

3. There has been a preference for children play area to be made.

4. Since majority of the people spend more than 1 hour in supermarkets beverages should

be served while shopping5. Supermarkets should continue to offer competitive prices because mostly people go

there because of the price factor.


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Name: _______________________ Age: ________________

Contact: _____________________ Gender: _____________

Research Questionnaire

Why Super Markets are Preferred over Retail Stores in Pakistan

Q1. How often do you go for shopping to supermarkets?

f. Daily

g. Weekly

h. Twice a month

i. Once a month

j. Any Other periodicity (please specify)_______________________

Q2. Which supermarket(s) do you usually visit for shopping?

f. Aghas super market

g. Naheed supermarket

h. Imtiaz

i. Makroj. Other (please specify)___________________________________

Q3. Please specify the range of your TOTAL MONTHLY family income:

e. Less than Rs. 25000

f. Rs. 25001-50000

g. Rs. 50001-75000

h. More than Rs. 75001

Q4. How far is the supermarket from your home?

e. Walking distance(< 5 minutes)

f.

5-10 minutes driveg. 11-20 minutes drive

h. More than 20 minutes drive

Q5. Will you still go to supermarket even if it is not near your home?

d. Yes

e. No

f. Maybe/ Dont know

Q6. Would you like to have home delivery service?

d. Yes

e. No

f. Maybe, sometimes

Q7. On an average how much time do you spend shopping in supermarkets?

e. Approximately 1 hr

f. 1 hrs to 2 hrs

g. 2.01 hrs to 3 hrs

h. >3hrs


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Q8. At what time usually you prefer going to supermarkets?

f. Pre-noon

g. Afternoon

h. Evening

i. Night

j. Late night

Q9. Rate how much importance you give to the different aspects in supermarkets.

(On a scale of 1-5, 5 is the most important and 1 is the least important)

m. Location

n. Variety

o. Price

p. Environment in general

q. Car parking space

r. Deals/Discounts you get

s. Choosing product yourself

t. Status symbol

u. More space to walk aroundv. Service provided by sales force

w. One stop shop

x. Cleanliness

Q10. Do the supermarkets you visit have helpful and friendly sales force?

d. Yes

e. No

f. Dont care

Q11. Would you like all the employees in supermarkets to have a specific dress code?

d.

Yese. No

f. Dont care

Q12. Would you like to be served beverages while shopping?

d. Yes

e. Maybe

f. No

Q13. Would you prefer some children playing area to be made?

d. Strongly Agree

e. Agree

f. Disagree


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APPENDIX

Rmt Report final

Documents

Transcript of Rmt Report final