An Evaluation of the Factors Influencing Customers’ Experience in Supermarkets of Bangladesh

Abstract

The supermarket industry of Bangladesh came off the ground in the early 2000s. The industry has witnessed steady growth over this time-frame. Mostly run by three key players Shwapno, Agora and Meena Bazar, the industry has brought to a certain extent a major shift of consumer shopping preferences from mom-and-pop stores to the superstores. The rise of the middle class and its growing buying power drive the growth of Bangladesh's supermarket business. The sector is likely to witness further growth due to rapid urbanization and higher per capita income, according to market players. The market size of the country's supermarket is approximately Tk. 2,500 crore, and the growth has been nearly 15 percent per year over the past couple of years. Faced with many obstacles such as the imposition of VAT, scarcity of proper commercial space and a yet-to-be-robust value chain, the industry is making progress towards growth. The top players jumped on the bandwagon to create a superior "Supermarket Experience" for their valued customers. This study aims at investigating the factors that affect customers’ experience in supermarkets of Bangladesh. Secondary data were used to review the literature and primary data were used to conduct the analysis. A sample of 206 customers who regularly visit supermarkets were interviewed using a structured questionnaire. Both descriptive and inferential analysis were used to analyze the data. Multivariate analysis such as- Exploratory factor analysis was used to identify the factors that significantly influence customers’ experience in supermarkets. Multiple regression analysis was performed to identify the relationship between the factors and the overall customers’ experience in supermarkets of Bangladesh. The result shows that factors such as, time saving, staff assistance and responsiveness, product authenticity with clear labeling, return policy, flexible mode of payment, convenient location and competitive pricing are the important factors that influence customers’ experience in supermarkets of Bangladesh. This study suggests that the super chain owners should focus more on saving customers’ time, staff assistance and responsiveness, ensuring authenticity of goods by clearly labeling, liberal return policy, flexible mode of payment such as- card and digital payment, convenient store location and competitive pricing of goods compared to the local wet markets to improve the customers’ experience in supermarkets of Bangladesh.

Keywords: Customers’ experience, Time saving, Staff assistance, Product authenticity, Flexible mode of payment, Competitive pricing.

DOI: 10.7176/EJBM/11-26-02

Publication date:September 30^th 2019