international journal of trade and commerce-iiartc

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Prof. N. K. TANEJA, Vice Chancellor C.C.S. University, Meerut, U.P., India. Prof. RAJENDRA PRASAD YADAV, Vice Chancellor Allahabad State University, Allahabad, India Sri VIKRAM CHANDRA GOEL IPS (Retd.), (Ex Director General of Police), Ex. V.C.,, C.C.S. University, Meerut Prof. S. K. KAK, Former Vice Chancellor of C.C.S. University, U.P.T.U. Meerut, U.P. India Prof. R.D. SHARMA, Vice Chancellor, University of Jammu, Jammu, India Dr N.P. SINGH, Principal, Meerut College, Meerut, U.P. India

EDITOR-IN-CHIEF:  Dr. S.K.S. YADAV, Associate Professor, Faculty of Commerce & Business Administration, Meerut College, Meerut, U.P., India.  Prof. MOHD. ALI, Aligarh Muslim University, REFEREED PANEL: Aligarh, India  Prof. RADHEY SHYAM,(Retd.) Lucknow University,  Prof. M.B. SHUKLA, Kashi Vidyapeeth, Varanasi, India India  Dr. N.L. SHARMA, MJP, Rohilkhand University,  Dr. K.D. GAUR, Former Director I.C.S.S.R., New Bareilly, India Delhi, India  Prof. D.N. YADAV, PDD Gorakhpur University,  Prof. NAWAB ALI KHAN, Dean, Aligarh Muslim Gorakhpur, India University, Aligarh, U.P. , India  Prof. K. M. PANDEY, Banaras Hindu University, Varanasi, India.  Prof. Y.P. SINGH, Delhi School of Economics, Delhi ADVISORY BOARD University, Delhi, India  Prof. ABBAS J. ALI, Indiana, USA.  Dr. D.R. DANDAPAT, University of Calcutta,  Prof. KAMAL NAYAN AGARWAL, School of Secretary, Indian Accounting Association, Best Bengal, Business, Howard University, Washington- DC, U.S.A. India  Ms. VASSILIKI BAMIATZI, Leeds University  Mr. RAJESH KUMAR YADAV,I.A.S., Vice-Chairman, Business School, Leeds, United Kingdom Meerut Development Authority, Meerut, U.P., India  Ms. JULIETTE OVERLAND, The University of Sydney  Prof. VIJAYA LAXMI CHARI SETH, Damoderdas Business School, Sydney, Australia School of Commerce, Gujarat University, Ahmedabad,  Prof. RAJENDRA PRASAD YADAV, Vice Chancellor Gujrat, India Allahabad State University, Allahabad, India  Dr. PATTHIRA PHON-NGARM, Loei Rajabhat  Prof. RAM GOPAL YADAV, M. P., National General University ,Thailand Secretary, Samajwadi Party, India.  Prof. P. N. MISHRA, Management Development  Mr. ASHOK MISHRA, BASF, Singapore Institute, Gurgaon and Fellow University of Liverpool,  Dr. NGBOAWAJI DANIEL NTE, Novena University, Liverpool, UK. Ogume, Nigeria  Prof. KULWANT PATHANIA, Deptt. of Commerce &  Dr. NASSER S. AL-KAHTANI, Salman Bin Management Studies, H.P. University, Shimla, H.P., India Abdulaziz University, Al-Khraj, Kingdom of Saudi Arabia  Dr. KRIPA SHANKER GUPTA, KSG Center for  Dr. S . SARANGAPANI, Ibra College of Technology, Learning and Development, Bangalore, India Ibra, Sultanate of Oman  Prof. PRAMOD KUMAR GUPTA , Devi Ahilya  Mr.IVO KUZMANOV, Beogradska, Bitola, University, Indore, India, Macedonia  Dr. SAMEER PINGLE, Nirma University, Ahmedabad,  Prof. NAWAB ALI KHAN, Salman Bin Abdul Aziz (Gujarat), India University, Al-Kharj, Kingdom of Saudi Arabia  ANUPAM MITRA, Symbiosis Institute of Business  HON’ABLE SHRI RAM NARESH YADAV, Management, Bangalore, India Governor of Madhya Pradesh, M.P. India  Dr. MURUGESAN, Indian Institute of Plant Engineers,  HON’ABLE JUSTICE RAVINDRA SINGH TNC, Chennai, India YADAV, Judge, Allahabad High Court, Allahabad U.P.  Prof. RAMESH CHANDRA MISHRA, Institute of India Professional Studies, Nainital , U.K. India  HON’ABLE JUSTICE RAM SURAT SINGH, Former  Dr. MANAS PANDEY, VBS Purvanchal University, Judge, Allahabad High Court U.P. India Jaunpur, U.P. India  Prof. ANIRUDHA K. SINGH YADAV, UPPSC  Dr. BABY KUMAR, Dean, Faculty of Commerce, Allahabad, U.P., India C.C.S. University, Meerut, U.P., India

ISSN-2277-5811(Print) & ISSN- 2278-9065(Online) Impact Factor: 4.242

INTERNATIONAL JOURNAL OF TRADE AND COMMERCE-IIARTC (Refereed Research Journal of Social Science & Humanities) Volume-V | Number -I | January-June, 2016 Impact Factor: 4.242 by COSMOS and 2.813. by International Society for Research Activity (ISRA), Indexed with: Cabells, U.S.A., Ulrich, U.S.A., Connect Journals, India, ISRA, Get CITED, Georgetown University Library, Washington DC, Genamics JournalSeek, ZHdK Medien-und Informationszentrum, German National Library of Science and Technology (TIB), Hannover, Cosmos Foundation (Germany), Electronic : Journals Library: Social Science Research Center, Berlin, Leipzig University Library founded in the year 1543, Scribd, ZB MED is a pioneer in the field of open access publishing in Germany etc.

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NATIONAL EDITORIAL BOARD, DEPUTY EDITOR-IN-CHIEFS  Prof. CHALAM V. GORIPARTHI, Department of Commerce & Business Administration Acharya Nagarjuna University, Nagarjuna Nagar , India  Dr. DHARMENDRA YADAV, Department of Mathematics, Vardhaman P.G. College, Bijnore, U.P., India.

EDITORS  Dr. S.K. RASTOGI , Faculty of Commerce, Hindu College, Moradabad, Affiliated to MJP Rohilkhand University, Bareilly, India  Dr. K. SIVACHITHAPPA, University Of Mysore Post Graduate Centre, Tubinakere Campus, Mandya, India  Dr. SUBHASH CHAND, Department of Chemistry, Meerut College, Meerut, India  Dr. ASHOK KUMAR, Mathematics Department, Meerut College, Meerut, India  Dr. RAKESH KUMAR, Department of Commerce, Meerut College, Meerut, India

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FROM EDITOR’S DESK

Almost 15 years ago Jeff Bezos, founder of US online retail firm Amazon, said e-commerce was going to change the way the world shops. It has and in the process rained billions of dollars into India this year. Investment plans announced this week by homegrown Flipkart — founded by the Bansals who are former Amazon engineers — and Amazon itself show how fast India is changing. Even as successive governments have agonized over allowing foreign investments in traditional retail, their online counterparts have piggybacked on the recent dramatic increase in access to internet through mobile phones among young Indians. And this is not restricted to metros. Flipkart, which has over 20 million customers, gets around half of its orders from mobile phones — up from just 5% a year ago. A combination of a relatively young population and exploding internet access are bound to attract a mix of money, technology and companies into India — perhaps even leapfrogging the retail stage. Innovative strategies can be designed even for products that customers would like to „touch and feel‟ prior to purchase. In case of clothes, for example, customers can be given an option where they can try them out in their homes before purchasing them. As sourcing, retailing and warehousing costs drop due to the Internet platform, this could be a bonanza for Indian consumers who‟ve been hit hard by inflation. Indian e-commerce companies have raised foreign money through complicated structures, while Amazon operates in India as an online marketplace connecting local firms and customers. India has turned out to be Amazon‟s fastest growing market, while Flipkart displays commendable ambition to take Amazon on. Fears regarding e-commerce are misplaced. They have not hurt local businesses. Instead, they have helped many small firms, geographically restricted on account of limited resources; find a national market for their products. When developments in India‟s ecommerce industry are juxtaposed to improvements in communications technology that will drive India‟s plans to bring every household into the formal financial sector, we may be on the cusp of unprecedented boom in this area. This week‟s announcements should catalyze NDA government to revisit old bugbears. Change makes its way into India regardless of politicians‟ desire to uphold the status quo. Technology on which e-commerce platforms are built has a lot of Indian contribution. It would be very wrong to ignore it in India. We are pleased to release first issue of volume five of the International Journal of Trade & CommerceIIARTC. The Journal establishes an effective communication channel between decision and policy-makers in Industry, trade, business, government agencies, academic and research institutions to recognize the implementation of important role effective systems in organizations. IJTC-IIARTC aims to be an outlet for creative, innovative concepts, as well as effective research methodologies and emerging technologies for effective business management. We would like to remind you that the success of our journal depends directly on the number of quality articles submitted for review. Accordingly, we would like to request your participation by submitting quality manuscripts for review and encouraging your colleagues to submit quality manuscripts for review. IJTC-IIARTC provides authors with high quality, helpful reviews that are shaped to assist authors in improving their manuscripts.

Dr. S.K.S. Yadav, Editor-in-Chief International Journal of Trade & Commerce-IIARTC Website: www.sgsrjournals.com, Dated: June 30, 2016

ISSN-2277-5811(Print) & ISSN- 2278-9065(Online) Website: www.sgsrjournals.com INTERNATION JOURNAL OF TRADE AND COMMERCE-IIARTC (Refereed Research Journal of Social Science & Humanities)

CONTENTS S. No.

Title

Authors

Page No.

1.

Empirical Investigation of Exchange Rate and India‟s Agricultural Exports : Cointegration and Causality Analysis

Tarek Tawfik Alkhteeb

01-11

2.

Using the 7Ps of Booms and Bitner as Controllable Tactical Marketing Tools: An Exploratory Study on Selected Super Shops in Bangladesh

Md. Zahir Uddin Arif

12-29

3.

Role of Bitcoin in Global Portfolio - An Empirical Study

A Kotishwar

30-38

4.

Human Resource Development Growth Strategy: An Exploratory Study on State Bank of India

R. S. Meena

39-46

5.

Comparative Study of Traditional Kirana Stores and Modern Organised Retail Outlets

Amit Kumar Singh, Sanjay Kumar Rastogi, Naresh Kumar

47-59

6.

A Comparative Study of the Whistle Blower Mechanism in Public and Private Sector Enterprises in Power and Chemical & Fertilizer Industries of India

Kalpana Nebhinani, B.D. Sharma

60-64

7.

Assessment of Visual Fatigue Experienced By Female VDT Users

Khushdeep Kaur, Harpinder Kaur, M. K Sidhu

65-71

8.

Black Money in India: Impact on Indian Economy

Nazaquat Husain

72-78

9.

Analysis of Working Capital: A Case Study of Godrej Agrovet Limited

Yashmin Sofat, Deeksha Kapoor

79-86

10.

An Analytical Study of MGNREGA Poverty Alleviate Programmes in Special Reference of Uttar Pradesh

Deepti, R.C. Lal

87-99

11.

A Comparative Study of the Determinants Affecting the Formation of Commodity Derivative Indices

Nishant Kumar, Gyanesh Jain

100-108

12.

Office Politics and Backstabbing: An Impact on Employees Performance

Nidhi Singhal, Princi Gupta

109-114

13.

Role of Gandhi's Khadi Textile Industry Towards Inclusive Growth and Corporate Social Responsibility

Pankaj Dixit, R.C. Lal

115-120

14.

The Plight of Female Domestic Workers in Urban Amritsar

Ritu Arora

121-135

15.

Digital Marketing Synergy for Management Integrated Functions and Operations

Princi Gupta, Nidhi Singhal

136-144

16.

Impact of Swarnjayanti Gram Swarozgar Yojana on Rural Lives: An Evaluation of Rajpura Block Meerut District

Ajay Pratap Singh

145-151

17.

Indian Patent System Under Agreement: Issues And Challenges

D.N. Dwivedi

152-160

18.

Indian Agriculture During Period: Issues & Reforms

Neena Chhokra

161-168

19.

The Working Conditions of Construction Labourers (Women) in Ghaziabad District

Meenakshi, R.C. Lal

169-178

20.

The Study of Performance Appraisal System of “Archies Ltd.”

Kanika Maheshwari

179-198

21.

Weight And Design of School Bags : A Major Concern for Parents and Schools

K. Pant, H. Kaur and M. Sidhu

199-206

Post

Trips Reform

INTERNATIONAL JOURNAL OF TRADE AND COMMERCE Refereed Research Journal of Humanities & Social Science ISSN-2277-5811(Print) & ISSN- 2278-9065(Online) INDIAN INSTITUTE OF ADVANCE RESEARCH IN TRADE AND COMMERCE (IIARTC), 121/1A, SCHOOL LANE, PRAGATI NAGAR, MEERUT PIN: 250001 Faculty of Commerce & Business Administration, Meerut College, Meerut, U.P. INDIA.

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International Journal of Trade and Commerce-IIARTC January-June 2016, Volume 5, No. 1 pp. 01-11 ISSN-2277-5811 (Print), 2278-9065 (Online) © SGSR. (www.sgsrjournals.com) All rights reserved.

Empirical Investigation of Exchange Rate and India’s Agricultural Exports : Cointegration and Causality Analysis Tarek Tawfik Alkhteeb* Department of Agricultural Economics, Kafrelsheikh University (EGYPT) Email Id: [email protected]

Abstract The present paper is an attempt to identify the agricultural products in which India has comparative advantage and to analyze the trend of comparative advantage during the post reform period. The study has found that India enjoys comparative advantage in almost all the agricultural and allied products except meat. Though India gained comparative advantage recently in meat, however in other products the RCA indices have witnessed a declining trend during the reform period. Further the study has also estimated the cointegration relationship between exchange rate and exports of disaggregated agricultural products and found that there is long run cointegrating relationship between exchange rate and seven of the eleven agricultural products. The application of vector error correction model to examine causal relationship between exchange rate and export of different agricultural products reveals that exchange rate does cause change in export of all these seven products which manifests long run cointegrating relationship. Since we find cointegration and causal relationship between exchange rate and exports of several agricultural products, the country should devise such monetary and foreign exchange policy that the exchange rate should not appreciate in real terms and should be maintained at least at par with its competitors. Key words: Agricultural products, exchange rate, revealed comparative advantage, cointegration, Granger causality.

*Corresponding Author

PAPER/ARTICLE INFO RECEIVED ON: 25/04/2016 ACCEPTED ON: 05/06/2016

Reference to this paper should be made as follows: Tarek Tawfik Alkhteeb (2016), “Empirical Investigation of Exchange Rate and India‟s Agricultural Exports : Cointegration and Causality Analysis”, Int. J. of Trade and Commerce-IIARTC, Vol. 5, No. 1, pp. 01-11

Empirical Investigation of Exchange Rate and India’s Agricultural Exports : Cointegration and Causality Analysis Tarek Tawfik Alkhteeb

1. INTRODUCTION During the last few decades, world has witnessed significant changes in composition and structure of foreign trade. Change in technology, growing trade liberalization, establishment of WTO and consequent change in foreign trade policies and more outward oriented economic policy of many of the countries has resulted in such kind of changes in world trade structure. These changes in world economic environment besides putting many challenges have also provided with good opportunities to the developing countries including India. During the past several years the position of Indian agricultural commodities in the international market has experienced significant changes. In several commodities like tea, coffee, rice, spices etc, it occupies commanding position in global market. At the same time, on account of arrival of new players in the field, the competition has increased enormously posing great challenge to this sector. Most of these new entrants are from Asian countries like China; Thailand; Malaysia; Sri Lanka etc. who are similar in economic characteristics pose a big threat to Indian agricultural products. With the establishment of WTO, liberalization of trade regime and consequent economic changes that have taken place in the world economy; there has been rapid transformation in the demand and supply conditions of several countries. Many countries like Vietnam, Turkey etc have emerged as new powers with considerable potential in agricultural trade. India‟s approval of Agreement on Agriculture (AoA) with WTO has also affected India‟s agricultural trade. Besides such development in international perspective, various changes have also taken place in domestic policies. These changes have also affected India‟s exports of different agricultural commodities. One such development is adoption of floating exchange rate system whereby the exchange rate is determined by market demand and supply of the currency. India has adopted floating exchange rate system since 1993. Since then the rupee has depreciated for over a decade. But during 2003-04 to 2007-08 it has manifested an upward movement in nominal terms. However, in real terms the exchange rate has shown an upward trend and exchange rate has appreciated by about 24 percent from 2004-05 to 2010-11. Rupee has been depreciating since then. During the period, various agricultural commodities exported from India have responded differently and their levels of comparative advantage in the global markets have altered significantly. Hence, it is important to have an in-depth analysis to find alterations in the comparative advantage of India and the effect of exchange rate on exports of different agricultural products in India. 2. OBJECTIVES OF THE STUDY The present study has the following objectives: 1. To identify the agricultural products in which India has comparative advantage. 2. To examine the effect of exchange rate variation on different agricultural products. The paper is structured as follows. Next section 3 presents a brief review of literature. In section 4, an overview of agricultural exports has been given. This is followed by description of methodology and data source. In following section results have been discussed. The final section presents the conclusion. -2-


3. LITERATURE REVIEW Since the method to estimate the Revealed Comparative Advantage (RTA) developed by Balassa (1965), RCA indices have widely been used to assess comparative advantage of export commodities. Richardson and Zhang (1999) used RCA index to analyse the trade performance of USA with 38 of its large trading partners for the period 1980 to 1995. The study found that there has not been much change in comparative change in US‟s comparative advantage for the products classified at one digit SITC. Ferto and Hubbard (2003) used the index to estimate the comparative advantage of Hungary foreign trade for agricultural products vis a vis the EU for the period ranging from 1992 to 1998. The study found that Hungary has comparative advantage in 11 of 22 products. Mahmood (2004) conducted a study on Pakistan using Balassa method. He divided all the commodities into four categories; competitive positioned products, threatened positioned products, emerging products and weakly positioned products on the basis of RCA index. He observed that in Pakistan there are some non-agricultural sectors which have gained competitive advantage. However, such advantage is not uniform throughout the sectors. Also Pakistan has not been able to succeed in moving from low value added unskilled labour intensive products to technology intensive and high value added commodities. Comparative advantages was measured by Batra and Khan (2005) for commodities groups sectors in 97 chapters of HS- 1996 using RCA index for both India and China for 2000 and 2003. The analysis revealed that there are differences in comparative advantage at different level of commodity disaggregation. Some commodities which are at higher level of ranking as per RCA index do not manifest same level of ranking at six digit classification. In the case of India, only cotton could retain it ranking at disaggregate level. Simultaneously in some sectors, either of the countries have comparative disadvantage at disaggregate level, but enjoy comparative advantage at disaggregate level. Burrange and Chaddha (2008) studied comparative advantage of India‟s exports for the period 1996 to 2005. They concluded that labour intensive sector textile and scale intensive sector iron and steel enjoyed comparative advantage in export while technology intensive products suffers comparative disadvantage during the period. Ghani et al. (2000) using Balassa‟s RCA index tried to compare the competitiveness of footwear industry of Pakistan with that of India and China. He observed that at two digit classification the footwear industry of Pakistan has entered into advantageous position in 2003 and since then continuously moving upward. As against this the competitiveness of China and India started declining since 2001. At four digit classification, Pakistan experienced strong growth in three of its products. A similar study was done by Shah et al. (2009) related to Pakistani fruits as compared to major exporters of the world for the period 1995 to 2005. He concluded that in relation to its competitors Pakistan has higher comparative advantage in dates and mangoes and lowest comparative advantage in oranges except USA. There are few studies which have examined the relationship between exchange rate and agricultural exports. For example, Huges and Penson (1985) studies have shown that volume of agricultural exports have increased remarkably over the years, however, the fluctuation and instability in exchange rate is a point to be concerned. Vellianitis-Fidas (1976) have examined and -3-


found significant relationship between exchange rate and demand for U.S. agricultural exports. Johnson, Grennes, and Thursby (1977) compared the impact of exchange rate versus the impact of foreign commercial policy in the pricing of U.S. wheat. Chambers and Just (1991) observed that there are differences in findings of different researchers about the effect of exchange rate on agricultural exports. Some researchers have found that exchange rate has a significant role in promoting agricultural exports, while others do not find such important role for exchange rate. Paarlberg et al. (1994) detail the economic theory behind the impact of exchange rates on prices, production, and consumption. The authors report the research of other studies that have measured the effects of exchange rate movements on agriculture. Schwartz (1986) compared the effects of changes in exchange rate (and other macroeconomic variables) in a simple competitive versus a non-competitive market for wheat. Bradshaw and Orden (1990) applied Granger causality test to examine the effect of exchange rate on agricultural prices and exports. Alkhateeb and Sultan (2015) using bound test analysis have also found that there is long run cointegration relationship between REER and agricultural exports and change in REER besides other factors does cause change in total agricultural export of India. 4. OVERVIEW OF AGRICULTURAL EXPORT Since green revolution, Indian agricultural sector has witnessed a significant growth. It has transformed from deficit to surplus countries in many of the food products. As a result the export of agricultural and allied sector has increased significantly. The economic reforms since 1991 has further given boost to agricultural exports from India. The export from agriculture sector has increased from Rs. 6317 crores ($3521 million) in 1990-91 to Rs. 28582 crores ($6256 million) in 2000-01 at an annual compound rate of about 6 percent per annum. Then it increased at the rate of 13.2 percent per annum from 25852 crore rupees ($6256 mn) in 2000-01 to 111393 crore rupees ($24448 mn) in 2010-11 and then to 260953 crore rupees ($43133 mn) in 2013-14 at an annual rate of 23.7 percent per annum. However, in 2014-15 the agriculture export experienced a negative growth of about 4 percent and declined to 240642 crore rupees ($39357 mn) owing to global economic slowdown and declining commodity prices. Despite increase in export of agricultural products, its share in India‟s total exports increased from 17.9 percent in 1991-92 to 20.7 percent in 1996-97. Thereafter, it declined continuously and reached to 12.7 percent in 2014-15. The decline in share of agricultural exports is due to faster growth of non-agricultural exports of India. During the period, the relative importance of different commodities of India‟s agricultural and allied export items changed considerably. For example, the share of tea and mate decreased from 20 percent in 1980-81 to about 2 percent in 2013-14. The share of coffee fell from 10 percent to 2 percent in corresponding period. Similarly, the share of tobacco and cashew and kernals also declined from about 6 percent to 2 percent in the same period. As against this, the share of rice, spices and meat has substantially increased. For rice, cotton, sugar, and beef (buffalo), India‟s share in global market has become very significant. In addition to these products, India is also exporting significant amount of soybean meal, guar gum, corn, and wheat, as well as a diverse range of other products. The credit for this shift within the traditional item category goes to economic reform measures. A number of restrictions like export prohibitions, announcement of minimum export price, fixing of -4-


rigid ceilings for maximum possible export quantities and requirement of export licensing for certain type of agricultural exports that were earlier in vogue, have been removed under the new policy. Not only this a number of facilities and export promotion measures that were limited to a few agricultural commodities only have been extended to all commodities in this group. It is precisely these factors that might have resulted in the structural shift whereby the export of high value added agricultural products have started recording high growth rates. 5. DATA AND METHODOLOGY In order to identify the products in which India has comparative advantage in exporting to the world, a conventional concept of Revealed Comparative Advantage developed by Balassa (1965) has been used. Balassa was of the view that comparative costs are determined by both price and non-price factors much before the countries are engaged in trade which is difficult to observe. Hence, he developed another criteria or method which he called as revealed comparative advantage index. Since pattern of international trade broadly reflects inter country difference in relative costs and difference in non-price factor, index of revealed comparative advantage (RCA) is widely used as a measure of country‟s comparative advantage or disadvantage as compared to another country or group of countries with respect to different commodities a country exports. Various factors like economic, structural, world demand and trade specialization cause change in RCA for a product of a country. The RCA index is simply the ratio of the share of country „i‟ in world exports of commodity „k‟ to its share of total commodity exports. This index is represented as : RCA = (Xki / Xkw)/(Xi / Xw) Where, Xki = exports by country i of commodity k; Xkw = world exports of commodity k; Xi = total exports of country i; Xw = total world exports. The weighted average of RCAs of all commodities equals unity. Commodity with RCA value higher than one implies that the country has comparative advantage in exporting that commodity. Index with less than one shows comparative disadvantage in that commodity. We may also estimate the indices for different product groups. However, some people criticize the method as it considers only one side of trade flows, i.e. exports or imports. As noted, the RCAs are estimated for India to estimate comparative advantage in agricultural products. The RCAs have been computed at the 2-digit and 3-digit product level. The indices are worked out for the years starting from 1995 to 2014. The data source is the various issues of Economic Survey of India. Since different products have manifested different rates of growth over different period of time, the paper tries to explore the response of different products to exchange rate variation. Exchange rate is supposed to influence the export of a commodity by making it cheaper in international market when country‟s currency depreciates with respect to other currencies and vice-versa. To verify such effect of exchange rate variation in exchange rate on export of different agricultural products the paper has applied Johansen method of cointegration and Granger causality test. Since Johansen test requires that the variables should be integrated of same order. First of all we -5-


examine the order of integration of the variables under consideration to examine the influence of exchange rate on exports of agricultural products. For the purpose, Augmented Dicky-Fuller (ADF) unit root test will be used. It consists of auto regressing first difference of the concerned variable on one time lagged level variable and lagged difference variable (suitably selecting number of lag period) and optionally a constant and trend variable (Dickey and Fuller, 1979). This can be expressed as follows: n

Yt  0  1t  2Yt 1    j Yt  j   t

…(1)

j 1

The zero coefficient of lagged level variable (𝜌2) implies that the variable is having unit root and the variable is non stationary. But if 𝜌2 is negative and significant, then we will say that the variable is stationary or integrated of zero order I(0). When the coefficient is zero, we take first difference of the series and then apply the ADF test. After taking first difference of the series if the coefficient is estimated to be significantly negative, the variable is said to be integrated of order one I(1). If the variables happen to be non stationary but are integrated of same order, Johansen‟s method of cointegration can be applied to estimate the existence of long run correlation between exchange rate and amount of export of agricultural products. According to this approach, there are two methods (and corresponding test statistics) for determining the number of cointegration relations, and both involve estimation of the matrix П. This is k × k matrix with rank r. One method is maximum eigenvalue statistics and the second is trace statistics. In both the cases we test exactly r number of cointegration against r + 1 number of cointegarting vectors. 6. MAXIMUM EIGENVALUE TEST STATISTICS The test statistics are based on the characteristic roots (also called eigenvalue) obtained from the estimation of the matrix П. The test consists of ordering the largest eigenvalues in descending order and considering how many of them are significantly different from zero on the basis of following test statistics: max (r, r  1)  T ln(1  r 1 ) 6.1 Trace Statistics Test The second method is based on a likelihood ratio test about the trace of the matrix. The trace statistics considers whether the trace is increased by adding more eigenvalues beyond the rth eigenvalue. The trace statistics is calculated by

trace (r )  T

n



i  r 1

ln( I  r 1 )

The usual work is to work downwards and stop at the value of r which is associated with a test statistics that exceeds the displayed critical value. Critical values for both statistics are provided by Johansen and Juselius (1990). 6.2 Vector Error Correction Model Once the cointegration relationship is found, long run causality between exchange rate and export growth is examined by estimating VECM. When the variables are cointegrated, some kind of causal relationships are also expected among them (Maddala, 1992). Engle and Granger (1987) -6-


suggested that when the variables are cointegrated, multivariate vector error correction model (VECM) is more appropriate approach than the first difference VAR model to estimate causality test among the variables. The VECM can be expressed in following way:

lX it   0   ECTit 1   lREERt  m   t

…(3)

Where, Xi refers to India exports of i agricultural products; REER is real effective exchange rate; l denotes natural log. Δ is the first difference operator; ECTit-1 is lagged error correction term of i products. „i‟ refers to different agricultural products. If the coefficient of error correction term is negative and significant we may infer that there is causal relationship between the variables in the long run (Granger, 1988) and exchange rate Granger causes export growth of ith agricultural product. Annual data on these variables from 1995 to 2014 has been taken from various issues of Economic Survey of India and UNCTADSTATS. 7. RESULTS AND ANALYSIS Over the years the agricultural products of India has occupied an important position in world market. Since economic reforms, different agricultural products have responded differently to various measures taken by government of India and also on account of growing competition from different countries into the field. As a result the indices of RCA have also changed. The indices of RCA of major agricultural products have been given in table 1. Table 1: Indices of Revealed Comparative Advantage

0.7 1.0 1.6 0.9 1.1 1.0 0.9 1.0 0.9 0.9 0.9 0.9 1.1 1.4 1.8 1.7 1.2 1.4 3.8 1.3

Oilseeds

5.0 5.0 6.4 3.6 4.7 3.5 3.5 1.9 3.3 2.6 3.5 3.4 3.7 4.5 2.3 2.5 2.4 2.1 6.8 1.4

tobacco

14.0 18.1 20.3 17.7 20.3 15.5 13.8 11.2 9.0 8.7 0.0 11.9 14.4 12.7 9.7 10.6 10.5 11.0 24.0 9.5

Animal feed

20.8 26.9 30.9 24.6 31.9 21.0 20.0 16.6 12.7 11.1 9.0 8.2 8.2 7.9 6.5 6.8 6.6 5.4 14.7 4.5

spices

-7-

Tea

coffee

sugar

veg

Rice

cereals

fish

meat

Years

1995 0.6 3.2 3.8 26.9 1.3 1.2 4.0 1996 0.7 3.7 3.8 26.7 1.5 2.1 4.5 1997 0.8 4.3 2.5 20.9 1.8 6.6 4.4 1998 0.6 3.5 4.0 24.8 1.4 0.1 4.0 1999 0.8 4.0 5.0 34.1 1.6 0.1 5.7 2000 1.1 4.1 2.2 15.4 1.9 1.3 3.4 2001 0.8 3.6 2.7 14.6 1.6 3.6 3.9 2002 0.8 3.5 3.6 23.9 1.5 3.1 3.1 2003 0.8 2.6 2.8 14.6 1.2 1.9 2.8 2004 0.6 2.2 3.1 17.5 1.2 0.4 1.9 2005 0.8 2.1 2.3 14.8 1.3 0.8 2.4 2006 0.8 2.0 2.0 13.0 1.2 2.3 2.1 2007 0.9 1.9 2.5 17.0 1.1 3.4 1.8 2008 0.9 1.5 2.4 12.5 1.1 4.2 1.8 2009 0.7 1.3 1.8 8.8 0.9 0.2 1.2 2010 1.0 1.6 1.7 7.7 0.9 1.6 1.3 2011 1.2 1.7 2.8 9.9 0.8 2.3 1.3 2012 1.4 1.7 4.5 15.2 0.8 2.5 1.4 2013 5.1 5.6 13.4 49.3 2.4 3.5 3.7 2014 2.0 2.3 4.8 17.8 0.8 1.6 1.3 Note: Calculated from various issues of Economic Survey of India.

1.8 1.8 2.5 1.2 1.7 2.6 2.0 1.3 2.0 1.4 1.3 1.5 1.7 1.4 0.8 1.1 1.4 1.2 2.6 1.3


The indices presented in table 1 reveal that over the period different products manifested different responses. In the case of most of the agricultural and allied commodities included in the study, India enjoys comparative advantage over the world, but decline in the index is a matter of great concern. In the case of meat and tobacco however, India did not have comparative advantage during the initial years of the economic liberalization period. From the table we find that most of the agricultural products have shown upward trend in comparative advantage until 1999. The trend was reversed since then and we find declining trend in comparative advantage index of all these products during 2000 to 2010. This is due to the fact that many of the competitors of Indian agricultural products are doing better than India and has improved their position in international market. However, in the case of meat, India gained comparative advantage since 2010 while in the case of tobacco since 2007. In order to examine the long run association between real effective exchange rate (REER) and India‟s agricultural exports and the effect of depreciation on export growth of agricultural products, cointegration and causality tests have been applied. To confirm the fulfillment of conditions required for application of cointegration and causality test, augmented Dicky-Fuller (ADF) method of unit root tests have been applied. The results are shown in (table 2). Table 2: Augmented Dicky-Fuller (ADF) unit root test (MacKinnon (1996) one-sided p-values) REER

Coffee

Rice

Fish

Meat

Spices

Sugar

Tea

Tobacco

Vegetables

Animal Feed

Oilseeds

Level

0.5908

0.8199

0.9145

0.9965

0.8702

0.9699

0.8691

0.6051

0.8674

0.9424

0.8977

0.9969

First Difference

0.0010

0.0061

0.0022

0.0115

0.0370

0.1275

0.0013

0.0039

0.0086

0.0005

0.0001

0.0001

The results show that all these variables under consideration except spices are integrated of order one I(1) thus, confirming the conditions for the application of cointegration and causality tests. The result of Johansen cointegartion test shows that seven of the eleven products under study, e.g. rice; tea; coffee; sugar; meat and fish, animal feed are cointegrated at least at 10 percent level of significance on the basis of trace statistics and Maximum Eigenvalue. The products like tobacco, spices and vegetables do not show any evidence of long run cointegration relationship with REER.

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Table 3a: Cointegarion Test (P value of Trace Statistics)

Tea

Tobacco

Vegetables

Animal Feed

0.0399

0.1856

0.1155

0.0816

0.3201

0.0525

0.5966

0.1084

0.4089

0.0964

0.0012

0.0227

0.2660

Sugar

Meat

0.0433

Spices

Fish

0.6887

0.2416

0.0860

0.4255

0.2148

Rice

0.0766

At most one

Oilseeds

Coffee None

Table 3b: Cointegarion Test (P value of Max Eigen value) Tobacco

Vegetables

Animal Feed

0.1418

0.3840

0.0777

0.0525

0.5966

0.1084

0.4089

0.0964

0.0971

0.0674

0.2660

Tea

Meat

0.0564

0.2416

0.3201

Fish

0.3532

0.6887

0.0009

Oilseeds

0.0606

0.4255

Sugar

Rice

0.0634

At most one

Spices

Coffee None

For the products which witnessed presence of cointegration relationship with the exchange rate, causal relationship has been examined using VECM. The result of VECM shows that the lagged error correction terms, for all the products having cointegration relationship, are negative and statistically significant (table 4). This implies that REER does cause change in exports of all these seven agricultural products and depreciation of rupee leads to increase in exports of these individual agricultural products in India. The result is in line with earlier findings of Alkhateeb and Sultan (2015) that depreciation promotes agricultural exports. Further the study does not find long run cointegration relationship between exchange rate and export of three products; spices, vegetables and tobacco. -9-


Table 4: Granger Causality Test (VECM)

-0.492158 (0.23260)

[-2.74530]

[-2.11588]

Animal Feed

(0.36838)

Vegetables

-1.011315

Tobacco

Tea

[-5.89786]

[-3.63652]

(0.26553)

(0.04437)

[-3.71902]

-1.566042

-0.161344

(0.08773)

[-2.89431]

Sugar

Meat

-0.326257

(0.29225)

[-3.07466]

Spices

Fish

-0.845867

(0.15695)

Oilseeds

Rice

-0.482567

t-value

Coffee Coefficient of ECT(-1)

8. CONCLUSION AND POLICY RECOMMENDATIONS The paper has examined the revealed comparative advantage of different agricultural products in post reform period. The study has found that India enjoys comparative advantage in almost all the agricultural and allied products except meat. However, the comparative advantage has shown a declining trend over the period. Further, of the eleven products seven products have manifested long run cointegration relationship with exchange rate. Further, the study has also found that exchange rate does Granger cause change in exports of these products. Despite the fact that during most of the post reform period in India, real effective exchange rate declined and export of different agricultural products have also increased. India is losing its comparative advantage, may be due to strong competition from its competitors. This raises concern and more effective policy needs to be formulated to not only to survive in global market but need to outperform its competitors and reverse the downward trend in RCA indices. Since variation in exchange rate affects the competitiveness of exports of a country, and appreciation of currency in real terms makes the exports less competitive in international market and depreciation has favorable effect on exports. India should formulate its monetary and foreign exchange policy such that rupee should not appreciate in real terms. Second, since higher inflation in relation to its trading partner and its competitors raise the exchange rate in real term and makes our exports less competitive, India should control the level of inflation so that its currency should not appreciate in comparison to its competitors. -10-


REFERENCES [1]. Alkhateeb, T.T. and Sultan, Z.A. (2015). Determinants of India‟s Agricultural Export. European Journal of Business and Management, 7(4), 53-62. [2]. Balassa, B. (1965). Trade Liberalization and „Revealed‟ Comparative Advantage. Manchester School of Economic and Social Studies, 33, 99-123. [3]. Balassa, B., (1965). Trade Liberalization and Revealed Comparative Advantage. The Manchester School of Economics and Social Studies, 33, 92-123. [4]. Batra, A. and Khan, Z. (2005). Revealed Comparative Advantage: An analysis for India and China. ICRIER Working Paper No 168, New Delhi. [5]. Bradshaw, G. and Orden, D. (1990). Granger Causality from the Exchange Rate to Agricultural Prices and Export Sales. Western Journal of Agricultural Economics, 15(1), 100110. [6]. Burrange, L.G. and Chaddha, S.J. (2008). India‟s Revealed Comparative Advantage in Merchandise Trade Working Paper UDE 28/6/2008. Department of Economics, University of Mumbai. [7]. Chambers, R.G., and Just R.E. (1991). Effects of exchange rate changes on U.S .Agriculture. Amex J. of Agric Econs, 73, 33-43. [8]. Chow, P. (1990). The Revealed Comparative Advantage of the East Asian NICs. The International Trade Journal, 5, 235-62. [9]. Ferto, I. and Hubbard L.J. (2003). Revealed Comparative Advantage and Competitiveness in Hungarian Agri-Food Sectors. The World Economy, 26(2), 247-259. [10]. Ghani, E.N. Zakir and Akhter, N. (2008). Changing Revealed Comparative Advantage: A case study of Foot Wear Industry in Pakistan. Pakistan Development Review, 47(4), 695-709. [11]. Hughes, D.W. and Penson, J.B. (1985). Effects of Selected Macroeconomic Policies on Agriculture: 1984-1990. Agricultural Financial Review, 45, 81-91. [12]. Johnson, P.R., Grennes, T. and Thursby, M. (1977). Devaluation, Foreign Trade Control, and Domestic Wheat Prices. American Journal of Agricultural Economics, 59, 619-627. [13]. Mahmood, A., (2004). Export Competitiveness and Comparative Advantage of Pakistan s‟ Non-agricultural Production Sector: Trends and Analysis, Pakistan Development Review, 43(4), 541-561. [14]. Paarlberg, P.L., Webb, A.J. Morey, A. and Sharples, J.A. (1994). Impacts of Policy on U.S. Agricultural Trade. United States Department of Agriculture Economic Research Service. [15]. Rana, P.B. (1990). Shifting Comparative Advantage among Asian and Pacific Countries. The International Trade Journal, 4, 243-58. [16]. Richardson, D.J. and Zhang, C. (1999). Revealing Comparative Advantage :Chaotic or Coherent Patterns Across Time and Sectors and U.S. Trading Partners? National Bureau of Economic Research. Working Paper No. 7212. [17]. Schwartz, N.E. (1986). The Consequences of a Floating Exchange Rate for the U.S. Wheat Market. American Journal of Agricultural Economics, 68, 448-433. [18]. Shah, H., Sharif, M. and Akhter, W. (2009). Competitiveness of Pakistani Fruits in the World Market. The Lahore Journal of Economics, 14(2), 125-133. [19]. Vellianitis-Fidas, A. (1976). The Impact of Devaluation on U.S. Agricultural Exports. Washington, D.C. Agricultural Economics Research, 28, 107-116.

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International Journal of Trade & Commerce-IIARTC January-June 2016, Volume 5, No. 1 pp. 12-29 ISSN-2277-5811 (Print), 2278-9065 (Online) © SGSR. (www.sgsrjournals.com) All rights reserved.

Using the 7Ps of Booms and Bitner as Controllable Tactical Marketing Tools: An Exploratory Study on Selected Super Shops in Bangladesh Md. Zahir Uddin Arif* Department of Marketing, Faculty of Business Studies, Jagannath University, Dhaka-1100, Bangladesh Email Id: [email protected]

Abstract Purpose: The purpose of the study is to explore the use of 7Ps- product/service, price, place, promotion, people, process and physical evidence as controllable tactical marketing tools of super shops in Bangladesh especially in Dhaka city, the capital of Bangladesh. Design/methodology/approach: Exploratory research design has been used for the purpose of the study. The study has obtained data from primary and secondary sources. Primary information have been gathered using an unstructured questionnaire from the interviews of 10 executives of 5 super shops (Agora, Almas Super Shop, Best Buy, Meena Bazaar and Shwapno) in Dhaka city selected through convenience sampling technique. Secondary information have been collected and analyzed from various published articles in refereed journals, published books, research monographs, reports published in daily newspapers and websites of different super shops. Findings: The study has found out that as tactical marketing tools, super shops use different mixtures of 7Ps as per their necessity to target and capture their different consumer segments and position into their minds creating brand loyalty to their retail stores. The study has recommended that the 7Ps should be blended effectively considering the bundle of demands of each segmented consumer market following market driven strategy. Practical implications: The study has practical implications for the entrepreneurs, investors, policymakers, industry experts, media, and domain experts to discuss and create a unified voice for super shop businesses in Bangladesh. Originality/value: The study will help to originate the value to both the super shop owners and consumers if the effective and efficient mixtures of 7Ps can be utilized more rigorously for better proliferation of the segmented markets. As a result, marketers can incorporate the convenient 7Ps structure in order to provide an insight for the super shop industry to evaluate the effectiveness of their marketing strategies and tactics. Keywords: Marketing tools, Service Marketing mix, 7Ps, Retailing, Super shop, Dhaka city.



Reference to this paper should be made as follows: Md. Zahir Uddin Arif (2016), “Using of 7Ps of Booms and Bitner as Controllable Tactical Marketing Tools: An Exploratory Study on Selected Super Shops in Bangladesh”, Int. J. of Trade and Commerce-IIARTC, Vol. 5, No. 1, pp. 12-29

Using the 7Ps of Booms and Bitner as Controllable Tactical Marketing Tools: An Exploratory Study on Selected… Md. Zahir Uddin Arif

1. INTRODUCTION The importance of super shop is increasing day by day in Bangladesh as modern retail business by offering unique shopping experience. Super shop culture is playing a vital role in the continuously changing shopping pattern of customers in urban areas of Bangladesh especially in Dhaka city, the capital of the country. Maximum (88%) of the traditional retail shops are owned by sole-proprietors, only about 50% among the visitors to such retail shops make actual purchase, retailing as yet is on a small scale in Dhaka city and retailers do not go for advertisement in the media very much, credit-sale has been found to some extent, only in few product lines such as industrial goods, grocery and stationery items, only a few retailers give emphasis on quick delivery, specialist service or trying to build trust among the customers, most of the surveyed retailers (61%) do not know the laws of and the rights of the consumers except only 50% surveyed medicine shop owners know such laws (Farouk, 1987: 1-3). In another study, Azad and Bhuiyan (1992) have found the characteristics and problems of grocery retailing in Dhaka city such as irregular supply, quality variations from time to time and shop to shop, price fluctuation, bargaining, adulteration, shortage of adequate capital, high cost of transportation etc. As a result, customers may switch from traditional grocery shops to modern super shops to buy their essential elements at a large space keeping their hassle free lifestyle. At present days, due to the existing problems of traditional retailing business, modern retailing like super shop has been expanded in Dhaka city and other divisional cities of Bangladesh (Arif, 2013). Mainly as an organized retailing business, super shop is a one floor large area consisting of the daily and necessary goods under a roof offering the consumers hygienic goods at a competitive price (Jahan and Noor, 2012). Seiranevoda (2011) has distinguished the variables affecting shoppers to purchase at super shop in Bangladesh in particular six probable extrinsic cues which include brand image, perceived quality, perceived price, location of the shop and product availability. The present study has attempted to learn that as a research question what are the 7Ps also known as the service marketing mix that are used by super shops as controllable tactical marketing tools? Dhaka based super shops such as Agora operates 13 outlets, Almas Super Shop 6, Best Buy 33, Meena Bazaar 18, Prince bazaar 2, Nandan 5, Border Guards Bangladesh (BGB) 11 respectively and Shwapno operates 59 outlets including 30 outside Dhaka city. More than 600 retail outlets are relied upon to be set up in the following five years in an attempt to attract more consumers (Jahan and Noor, 2012). Considering the future increasing demands of customers, organized retail business is increasing day by day with large volume of product categories and creating new opportunities for the business enterprises facing challenges (Arif, 2013). As a result, the present study has analyzed the 7Ps- the serving marketing mix as controllable tactical marketing tools that are used by super shops like Almas Super Shop, Agora, Best Buy, Meena Bazaar and Shwapno in Dhaka city. 2. RATIONALE OF THE STUDY The study analyzes the use of 7Ps model of Booms and Bitner also known as the service marketing mix in the super shops in Bangladesh especially in Dhaka city. It provides guideline for further research in Dhaka for organized retail. Research says about super shops‟ service offered towards customer in Dhaka. The study will help customers to know what they are gaining from the super shops and also super shops to learn what they are giving customers and what else they -13-


can give in future. This study is important because there are not many studies published in the area of service marketing of super shops in Bangladesh. The study is related with the offers of Agora, Almas Super Shop, Best Buy, Meena Bazaar and Shwapno to the customers in Dhaka. The study focuses on the 7Ps model i.e. the services marketing mix used by Almas Super Shop, Agora, Best Buy, Meena Bazaar and Shwapno that satisfy their customers. The study shows opportunities and challenges for these super shops in respect to their internal & external environments. 3. LITERATURE REVIEW There are insufficient studies and literatures in the context of super shops and their expansion in Bangladesh. As a result, few available published literatures have been reviewed for developing the objectives of the study. The Marketing Mix The most widely recognized controllable tactical marketing tools for delivering attractive market reaction in a target market is the “marketing mix” (Van Waterschoot and Van den Bulte, 1992). Gupta (1988) demonstrates marketing mix has a solid association with customers purchasing patterns, brand decisions and frequencies of procurement. Numerous consumers use price as a sign of the quality of the brand which is an essential element in purchasing decision (Nilson, 1998; Kotler and Amstrong, 1989). Place or the channel of distribution is a combination of organizations through which a seller markets goods to user or ultimate consumer (Peter and Donnelly, 1992). Various types of promotional activities are necessary in modern marketing practice to retain and develop the market share (McCarthy and Pereault, 1984). Fruitful sales promotion must be predictable with the brand values and be reliable with every single other part of the brand (Peter and Olson, 1990; and Nilson, 1998). 4Ps model (product, price, place and promotion) of McCarthy is one of the conventional classifications of the marketing mix, and it controls among all other classifications, for example, the goods and services mix, the distribution mix and the promotion mix (Lazer et al., 1973), the introduction of packaging as the 5th P (Nickels and Jolson, 1976), the incorporation of public relations (Mindak and Fine, 1981) and the inclusion of people (Judd, 1987), and so on. Doubtlessly, the components of the marketing mix seem to cover with each other when utilized as a part of the interrelated way of marketing activities, yet it is to be important for consumer product marketing (Dickson and Ginter, 1987; Rafiq and Ahmed, 1995). In spite of this, the system has gotten expanding feedback in view of its obscure detail of every classification; this incorporates the standard of four-Ps being excessively restricted and the subject of internal orientation (Schultz, 2001), non-appearance of customer interactivity (Yudelson, 1999) and it is not significant to retention-based marketing (Gronroos, 1994), etc. Rafiq and Ahmed (1995) distinguished that 7Ps system can be connected to customer goods and has already accomplished a high level of acknowledgment as a generic marketing mix among the respondents. Therefore, 7Ps model of Booms and Bitner (1981) ought to replace McCarthy's 4Ps model. Lin (2011) recognized the key fruitful marketing mix (7Ps) that is the focus to be investigated in Taiwan‟s fast food industry. Accordingly, in this study, through Decision Making Trial and Evaluation Laboratory (DEMATEL) and through expert‟s point of view, the shared

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relationship among marketing mix (7Ps) perspectives in the fast food industry has been investigated. 7Ps Model in the Marketing Mix i. Product According to Kotler and Armstrong (2006), product can be defined as anything that can be offered to a market for consideration, procurement, use or utilization that may fulfill a need or want of a consumer. It must give value to a consumer however does not need to be substantial in the meantime and essentially, it includes presenting new products or improving the current products (Booms and Bitner, 1981). In view of nature of product quality and comfort of shopping in the super shops, popularity of super shops is scattering in higher middle class and middle class people of Dhaka city (Arif, 2013). The significance of brand is expressed in a study of hazardous and harmful food risk (Yeung and Yee, 2003). Since perceived product quality and brand image in a roundabout way affect buying aims (Keiningham et al., 2005), brand and quality confirmation are chosen for the risk adjusting technique referencing product. ii. Price Price is the amount of money charged for goods or services or the sum of the values that customers exchange for the advantages of getting or utilizing the goods or services (Kotler and Armstrong, 2006). Pricing must be competitive and must involve profit, and the pricing strategy can include discounts, offers, and so forth (Booms and Bitner, 1981). Ahmed and Rafiq (1995) suggest that price is a harmony between utility/value expense for both individual and company. Price can influence customer decision in a buy since the customer perceives exchange something of value– the price to have something of value i.e. the benefits (Kotler and Keller, 2006). Verma and Varma (2003) opine that price is generally the adaptable elements to change contrasted with other elements of marketing mix. Companies frequently modify the fundamental price of a product to represent different client contrasts and evolving circumstances (Hunt, 2005). Price promotion is seen as better value to the customer in the general circumstance, since low price presumably pulls in clients (Fleischmann et al., 2004, Yee et al., 2005). The most widely recognized strategy is price lessening for a specific product when the demand drops. This phenomenon is genuine when the demand for the outraged product decreases after the outbreak of food scares (Yeung and Yee, 2003). Money back guarantees are additionally useful, yet there is almost no impact on customer buy for the product connected with food hazard (Yeung and Yee, 2003). Value advancement is seen as better esteem to the shopper in the general circumstance, since low cost presumably pulls in clients (Fleischmann et al., 2004, Yee et al., 2005). The most widely recognized strategy is value lessening for a specific item when the interest drops. This wonder is genuine when the interest for the outraged item decreases after the episode of nourishment alarms (Yeung and Yee, 2003). Cash back insurances are additionally helpful, yet there is almost no impact on customer buy for the item connected with nourishment peril (Yeung and Yee, 2003). iii. Place It alludes to the place where the customers can purchase the product and the product contacts that place through various channels, like wholesalers, retailers and internet (Booms and Bitner, 1981). Place incorporates company activities that make the product to accessible to target -15-


customers (Kotler and Armstrong, 2006). Akhter (2011) has additionally recognized that the Agora has aimed to enhance the volume of the low margin business with a more solid supply chain and trained staffs by such development of its retail chain. Mitchell (1998) states that the kind of store and in addition its area and environment might be determinants influencing hazard observations, and afterward to customer buying decision. Organized retailers in Bangladesh are concentrating more on strengthening their backward linkage supply chain, a challenge faced by retail chain shops for products accessibility. As the superstore idea is not extremely customary, the superstore biggies have neglected to become accordingly mainly due to appropriate and adequate supply chain management. The most sorted out and disciplined retailers are attempting to keep up their own supply chain management to convey crisp and quality items to the store in urban territory from root level agriculturists straightforwardly (Munni, 2010). iv. Promotion Promotion implies activities that convey the benefits of the product and persuade target customers to purchase it (Kotler and Armstrong, 2006: 50). It incorporates the different methods of communication or promotion to the customers and the company has to offer them the advantages of utilizing a particular product or service as opposed to simply discussing its features (Booms and Bitner, 1981). Promotion comprises of a particular mix of advertising, sales promotion, personal selling and public relations (Kotler and Keller, 2006). However, the more the customers perceived risk in purchasing a product, specifically when information is inadequate with regards to, the greater the propensity to utilize word of mouth (Pocharski and Jacobson, 2007). Individuals who are utilized to word of mouth information are the individuals who are physically close and thought to be credible or learned (Ali, 1999). Henceforth, the government laboratory approval/endorsement is observed to be a successful promotional approach for assuring the quality of the chicken meat (Yeung and Yee, 2003). v. People This alludes to the customers, employees, management and other people required. It is essential for everybody to understand that the reputation of the brand is in the people's hands (Booms and Bitner, 1981). People are the every single human performing artist who have impact in service delivery and thus impact the purchaser's perceptions: to be specific, the firm‟s personnel, and the customers in the service environment (Zeithaml et al., 2006). vi. Process Process is the actual systems, mechanisms, and stream of activities by which the service is delivered.” (Zeithaml et al., 2006). It alludes to the techniques and procedure of giving a service and is subsequently crucial to receive a intensive knowledge on whether the services are valuable to the customers, if they are provided in time, if the customers are educated properly about the services and numerous such things (Booms and Bitner, 1981). vii. Physical Evidence Physical evidence is the environment where the service is provided and where the firm and client associate, and any tangible components that encourage execution or correspondence of the service (Zeithaml et al., 2006). It refers to the experience of utilizing a product or service. When a service -16-


goes out to the customers, it is vital to observe what they are purchasing or not. For examplebrochures, pamphlets, flyers etc. serve this purpose (Booms and Bitner, 1981). So services marketing theorists have taken endeavors to recognize services marketing as a unique and distinct type of marketing from product marketing. Notwithstanding the 4Ps, people, process and physical evidences to the marketing mix framing the 7Ps, services marketing scholars staked out another field of management theory and practice separated from the tangible goods marketing (Lovelock, 1996; Goldsmith, 1999). Moreover, numerous items comprise of components of both tangible goods and intangible services (Goldsmith, 1999). According to Kotler and Armstrong (2006), marketing mix is the arrangement of controllable tactical marketing tools- product, price, place and promotion in the modern marketing practice that the firm blames to produce the response it wants in the target market. The other three elements of marketing mix are the- people, process and physical evidence. The tools can be used to develop both long run strategies and short run tactical programs (Palmer, 2004). According to Levy and Weitz (2003), retail blend is the mixture of elements utilized by retailer to fulfill client needs and impact their buying choice, incorporates goods and services offered, pricing, advertising and promotions, shop design and area, and visual promoting. The study of Jahan and Noor (2012) concentrates on product‟s quality, pricing, channels of distribution, promotional actions and customer attitude regarding “Meena Bazar” in Dhaka City. The study uncovers that Meena Bazar promotes their items at premium price to keep up quality and their promotional programs have significant influence toward buyers' response. However, service of any company has a great impact to measure the attitude of customers toward the marketing activities of super shops in Bangladesh. Therefore, it is reviewed that the earlier researchers in their past studies have not explored the use of 7Ps (product, price, place, promotion, people, process and physical evidence) in the super shops in Bangladesh. The use of 7Ps model given by Booms and Bitner in super shops in Bangladesh is very essential in light of the fact that at present days consumers are shopping in these large scale retail shops to satisfy their various types of daily individual and family necessities. So this study has been crucial for this kind of reason. 4. OBJECTIVES OF THE STUDY The main purpose of the study is to explore the use of 7Ps- product/service, price, place/distribution, promotion, people, process and physical evidence as controllable tactical marketing tools of super shops in Bangladesh especially in Dhaka city. For attaining the main purpose of the study, the following specific objectives are pointed out:  To identify the product/service offered by the super shops in Bangladesh.  To learn about the price of the super shops in Bangladesh.  To know about the place/distribution channel/policy used by the super shops in Bangladesh.  To understand the promotion tools used by the super shops in Bangladesh.  To know about the people who deliver the services in the super shops in Bangladesh.  To explore the process used by the super shops in Bangladesh.  To find out the physical evidence of the super shops in Bangladesh. 5. METHODOLOGY OF THE STUDY The study focuses on the 7Ps of Booms and Bitner as controllable marketing tools used by super shops in Bangladesh especially in the city of Dhaka. Exploratory research design has been used -17-


for the study. Both primary and secondary data and information have been gathered and analyzed for the findings of the study. Due to rising the popularity of super shops mostly in Dhaka city of Bangladesh, primary data and information have been obtained from 10 executives of 5 super shops, such as, Agora, Almas Super Shop, Best Buy, Meena Bazaar and Shwapno visiting 1 outlet of Agora at Moghbazar area, 1 outlet of Almas Super Shop at Gulshan area, 1 outlet of Best Buy at Rampura area, 1 outlet of Meena Bazar at Gulshan area and 1 outlet of Shawpno at Moghbazar area of Dhaka city. Sample size has been selected through convenience sampling technique due to not having accurate sampling frame. Depth interview method has been used to obtain primary data and information from 10 executives comprising of 2 executives from each of the 5 super shops using a set of unstructured questionnaire (open-ended) for this study. Pre-testing of the questionnaire has been done qualitatively before taking final interview. Few improvements of the questionnaire for conducting final interview have been incorporated based on the primary findings of the pilot study. Depth interview has been conducted as an unstructured, direct, one-on-one basis personal interview in which a single respondent is probed from 30 to 60 minutes on an average to uncover underlying motivations, beliefs, attitudes and feelings of the respondents (Malhotra and Das, 2011, p. 149). Due to probing the use of 7Ps model of Booms and Bitner in the selected 5 super shops have been identified to target their different consumer segments and position into their minds creating brand loyalty. During the depth interview sessions, the use of 7Ps have been raised and discussed with the respondents to get their comments on and recommendations for the super shop businesses in Bangladesh. However, before conducting depth interviews, the respondents have been assured that their identities will be remained strictly confidential and their given data and information will be used for academic purpose only. For conducting depth interview sessions, the author of the study has been taken assistance from a group of MBA students. Adequate training and supervision have been provided to them with the questions of the set of unstructured questionnaire so that they can help to conduct depth interview session with the 10 selected executives properly to obtain primary data and information for this study. After gathering the data; incomplete, biased, or abnormally answered data have been dropped down through a thorough scrutinizing process. As a result, only necessary, valid and reliable data and information have been considered for the findings and analysis of the study after compiling and cleaning the gathered answers including opinions and suggestions of the respondents carefully using the skill, knowledge and judgment of the author. However, observation method has been used for gathering primary information visiting various outlets of the above mentioned super shops in Dhaka city at different times and 7-Eleven stores, Woolworths stores, Kmart stores in Canberra ACT and Sydney, Australia in November, 2015 during the study period. Additionally, secondary information have been collected and analyzed from various published articles in refereed journals, published books, research monographs, published reports in newspapers and websites of different super shops. All gathered data and information have been necessarily compiled, transcribed, cleaned, analyzed and presented with narrative description for the insight investigation of the study. Concluding remarks have been drawn with few recommendations based on the findings of the study. -18-


6. LIMITATIONS OF THE STUDY AND OPPORTUNITIES FOR FUTURE RESEARCH To reach to the purposes, several types of hindrance available have created barrier to conduct this study. The limitations are pointed out below:  Reluctance of the executives of those super shops to conduct this study.  Insufficient knowledge to answer the questions by the executives of those super shops.  As per company policy many information have not been disclosed. However, the managers of super shops are busy in their daily schedules. As a result, it has not possible to spend more time in interaction with them for obtaining more insight investigation.  Personal biases might have come while answering the questionnaire.  Due to not availability of sampling frame for identifying the population for the study so the non-probability convenience sampling technique has been used to select small sample size.  Theoretical arguments underlying the conceptualization are not up to the mark due to scarcity of previous research findings relevant to the present study in the context of Bangladesh.  Due to time and monetary constraints it could not be possible to explore more area of concern pertaining to study. Moreover, some outlets of the super shops which are out of Dhaka, could not be reached. This study is all about the use of service marketing mixes of the 5 super shops. If anyone needs to research about their other sectors, they can do that. If the shops offer another services there will be need of further research. However, there is a scope for conducting more comprehensive qualitative and quantitative studies focusing on not only Dhaka city but also other cities of Bangladesh using probability-sampling technique with rigorous statistical analysis in future by the interested researchers in this field of study. 7. FINDINGS AND ANALYSIS OF THE STUDY Marketing Mix (7Ps) of Super Shops in Bangladesh The study has found out the following 7Ps as controllable tactical marketing tools used by the 5 super shops in Dhaka city-, such as Agora, Almas Super Shop, Best Buy, Meena Bazaar and Shwapno for their segmented markets based on the analysis of the information gathered from the respondents and the websites of these super shops. 7.1 Product The 5 super shops offer various product items. So the study has found out the following product items that are described below: 7.1.1 Agora Mainly Agora offers the following products to its customers that are presented in the Table-1. Table 1. Products Offered by Agora Fish Grocery Meat Dairy Vegetables Personal Care Bakery Household Fruits Miscellaneous items Source: Website of Agora (www.online-dhaka.com/1_8_17507_0-agora-bd-super-shop-dhaka-city.html) -19-


Agora mainly offers food items ranging from a wide variety of vegetables, fish, meat, bakery, fruits, grocery and dairy items. It also conveys a tremendous exhibit of other household, personal care, grocery and miscellaneous items. There are more than 30,000 different products available at any point in time in each of the Agora outlets. 7.1.2. Almas Super Shop Almas Super Shop offers the following products to its customers that are presented in the Table-2. Table 2. Products Offered by Almas Super Shop Raw meat Jewelery Fish Cosmetics Shari Electronics Goods Shoes Stationary Bag Panjabi Toys Fatwa Regular Commodities Miscellaneous Source: Website of Almas Super Shop (www.online-dhaka.com/1_8_17513_0-almas-super-shop-dhakacity.html) 7.1.3. Best Buy Best Buy mostly offers the following products to its customers that are shown in the Table-3. Table 3. Products Offered by Best Buy Catalogue Items Furniture Stool, Table, Chair, Piri, Wardrobe etc. Household Utility Glass, Mug, Coffee Mug, Jug, Bowl, Spout Basin, Plate, Vegetable Washing Net, Fruit Storage net, Salad Cutting Board etc. Storage Organizer, Beauty Box, Big Store Box, Kids Book Shelf, Closet, Cabinet, Rack, Luxury Shelf, Fish Basket etc. Food Containers Thin Wall Container, Conservers, Box, Jar etc. KIDS Snacks Box, Tiffin Box, Pot, Baby Feeding Bottle, Baby Reading Table, Baby Potty, Baby Hanger, Bath Tub etc. Miscellaneous Comb, Mirror, Flower Pot, Hand Fan, Rehal, Pill Box, Eye Glass Cover, Bed Pan, Plastic Gallon, Flies Killer, etc. Cleaning Bowl, Bucket, Soap Case, Basket, Bin, Brush, Dust Pan, Ice Scooper etc. Source: Website of Best Buy (www.rflplastics.com/wp-content/themes/rfl/Catalogue.rar) * Electronics is their future product. This will be available soon. 7.1.4. Meena Bazar Meena Bazar mostly offers the following product items to its customers that are presented in the Table-4. Table 4. Products Offered by Meena Bazar Apparel Gift Voucher Bakery Grocery Dairy Health-Beauty Frozen House Hold Fruits-Vegetable House wares Meat-Fish Stationery Toys Source: Website of Meena Bazar (www.meenabazar.com.bd/index.php?route=common/home) -20-


7.1.5. Shwapno Shwapno offers the following product items to its customers that are presented in the Table-5. Table 5. Products Offered by Shwapno Baby Care Infotainment Baby Food Kitchen Additives Beverage Packaged Food Commodities Perishable Dairy Personal Care Gift & Toys Protein Home Care Stationeries Source: Website of Shwapno (www.shwapno.com/product_range.php) It can be noted that product availability varies from outlet to outlet. 7.2. Price The 5 super shops charge distinctive price for their products. Additionally they do not mention that to their websites. So the price list cannot be found. But they fix their price using different approaches at various times for their diverse items, for example, i) cost-plus pricing- including a standard mark up to the product cost, ii) break-even pricing (target profit pricing)- setting price in order to break even on the costs of making and marketing a product; or setting price in order to make a desired profit, iii) value-based pricing- determining price based on buyers‟ perceptions of value rather than on the sellers cost, iv) value pricing- offering just the right blend of quality and good service at a reasonable price, and v) competition-based pricing- fixing prices based on the competitors‟ charged prices for similar goods. 7.3. Place The super shops collect products from different local & foreign distributors and make the products available in their different outlets. Then they keep those products in warehouses. The super shops use barcode readers in their software based computer systems. When a product is sold, the barcode reader keeps the record in the database of the computer. If the product is out of a specific amount, the warehouse distributes the specific amount of products in the specific branch of the super shop. Sometimes the systems have direct link with the suppliers. Then the suppliers can also know about the amount of the product and they send the specific amount of the product to the super shop. The suppliers collect the products from different manufacturers & farmers and the super shops also do the same and make available to their customers. 7.3.1. Agora The list of the outlets of Agora is shown below in the Table-6. Table 6. Outlets of Agora Sl. No. Name of Outlet Location 1. Rifle Square Dhanmondi 2. Genetic Plaza Dhanmondi-27 3. Chourasta Elephant Road 4. 101 Gulshan Avenue Gulshan 5. Pink City Gulshan-2 -21-


6. Gulfesha Plaza Moghbazar 7. Chourasta Shantinagar 8. Chiriakahana Road Mirpur 9. Sector-4 Uttara 10. Sector-14 Uttara 11. Afmi Plaza Chittagong 12. Pallabi Mirpur 13. Ranking Street Wari Source: Brochure of Agora, 2013 7.3.2. Almas Super Shop The list of the outlets of Almas Super Shop is shown in the Table-7. Table 7. Outlets of Almas Super Shop Sl. No. Name of Outlet Location 1. Main Branch 46, Gulshan Avenue, Gulshan-1, Dhaka. 2. Dhanmondi-15 House # 81, Road # 4/A, Dhanmondi-15, Dhaka-1209. 3. Dhanmondi-5 Road # 5, Dhanmondi, Mirpur Road, Dhaka. 4. Dhanmondi-27 Rapa Plaza, Dhanmondi-27, Dhaka. 5. Uttara Sector-9, Uttara, Dhaka. 6. Basundhara Basundhara City, Level-1, Panthapath, Dhaka. Source: Website of Alas Super Shop (www.online-dhaka.com/1_8_17513_0-almas-super-shop-dhakacity.html) 7.3.3. Best Buy The own outlets of Best Buy are shown in the following Table-8. Table 8. Outlets of Best Buy Sl. No. Name of Outlet Address 105/1/A, Kolwala Para Main Road, Shadhin Bangla Super 1. Mirpur-1 Market, Mirpur-1, Dhaka-1216. 2. Rupnagor Plot # 26/1, Road # 4, Rupnagar R/A, P.S: Rupnagor, Dhaka. 3. Mirpur-12 House # 12, Road # 8, Pallabi, Mirpur, Dhaka-12016. 4. Shenpara 145, Shenpara Parbata, Dhaka-1216. 5. Shewrapara 774, West Shewrapara, Dhaka-1216. 6. Ibrahimpur CB 211/4, Kachukhet Poran Bazar, Dhaka-1216. Mohammadpur 11/28, Azam Road, Block-D, Mohammadpur Town Hall, 7. Twonhall Dhaka-1207. Mohammadpur Krishi 8. 31/24, Block-C, Tajmahal Road, Mohammadpur, Dhaka-1207. Market 9. Gawsia 361/1, Shaheed Janoni Jahanara Emam Sharani, Dhaka-1205. 10. Azimpur 68/2, Pilkhana Road, Azimpur, P.S: Lalbag, Dhaka-1205. 11. Norda Basundhara 50/B, Progoti Sharani, Jagonnatpur, P.S: Vatara, Dhaka-1212. 12. Rampura 12, Malibag Chowdhurypara, D.I.T. Road, Dhaka-1219. 13. Malibag Railgate 107, D.I.T Road, Chandpur Tower, Malibag, Dhaka-1217. 14. Mouchak 90/C, New Sarqular Road, Siddeshwary, Dhaka-1217. -22-


15. Khilgaon 406/A, Khilgaon, Dhaka-1219. 16. Jatrabari 96, Saheed Faruk Road, Jatrabari, Dhaka. 17. Doyagonj 34/1, Monir Hossain Lane, P.S.: Sutrapur, Doyagonj, Dhaka. 18. Postogola 14/1, Alam Super Market, New Jurain, Dhaka-1204. 19. Nawabpur 96, 97/1, Endent Plaza, Nawabpur Road, Dhaka-1100. 20. Wari-1 1/1, Rankin Street Road, Wari, Dhaka-1203. 21. Wari-2 ½, Chondi Charon Bosh Street, Wari, Dhaka-1203. 22. Lalbag 59/1, Horonath Gosh Road, Lalbag, Dhaka-1205. 23. Nazimuddin Road House # 31, Nazimuddin Road. 24. Kamrangir Char-1 Kamrangir Char, Madbor Bazar, Comilla. 25. Kamrangir Char-2 Rasulpur Main Road, P.S: Kamrongir Char, Dhaka. 26. Narayangonj 148, B.B. Road, Narayangonj. 27. Saver Bazar Road A-87, S.K Tower, Saver Bazar Road, Saver. 28. Saver New Market 3, Aricha Road, Savar Pourosava, Saver. 29. Jamgara Ashulia Jamgara Courasta, P.S: Ashulia, Dhaka. 30. Tongi 119, Tongi Station Road, Tongi, Gazipur. 31. Signboard, Gazipur Fahim Plaza, National Board, Gazipur. 32. Gazipur K. S. Tower, Aoutpara, Chandana Chowrasta, Gazipur. 33. Sylhet Block-D, Main Road, Shahajalal Upa-Shahor, Sylhet. Source: Website of Best Buy (www.rflplastics.com/rfl-best-buy-own-outlet/) 7.3.4 Meena Bazar Meena Bazar‟s outlets are shown in the following Table-9. Table 9. Outlets of Meena Bazar Sl. No. Name of Outlet Location 1 MB Azimpur Outlet Azimpur 2 MB Chittagong Outlet Chittagong 3 MB Mohammodi Housing Outlet Mohammadpur 4 MB Pallabi Outlet Pallabi 5 MB Asad Avenue Outlet Asad Avenue 6 MB Banani Outlet Banani 7 MB Banasree Outlet Banasree 8 MB Dhanmondi-15 Outlet Dhanmondi-15 9 MB Dhanmondi-27 Outlet Dhanmondi-27 10 MB Gulshan-2 Gulshan-2 11 MB Khulna Outlet Khulna 12 MB Mogbazar Outlet Moghbazar 13 MB Shamoly Outlet Shamoly 14 MB Shantinagar Outlet Shantinagar 15 MB Sylhet Outlet Sylhet 16 MB Uttara-11 Outlet Uttara-11 17 MB Uttara-14 Outlet Uttara-14 18 MB Wari Outlet Wari Source: Website of Meena Bazar (www.meenabazar.com.bd/meenabazar-outlet) -23-


7.3.5 Shwapno The following Table-10 shows the list of outlets of Shwapno in Dhaka city. Table 10. Outlets of Shwapno Sl. No. Name of Outlet Address 1. Green Road Plot # 3A, Road # 4, Dhanmondi R/A. Beside the Labaid Diagnostic Center. 2. Panthapath House # 56/4, Lake Circus, Kalabagan, Dhaka. 3. WBC, Banani WBC, 76/A, Block-M, Road # 11, Banani, Dhaka. 4. Gulshan-2 Plot # 3, North Circle, Gulshan-2, Dhaka-1212. 5. Malibagh 260/6, Malibag, Ground Floor of Dhaka Science College. 6. Mogbazar 435/1, Boro Mogbazar (Near Wireless Gate). 7. Sky View House # 389/B, Sky View Afrina, Chowdhurypara, Khilgaon, Dhaka. 8. Central Basabo R. Rahman Garden, 47, Moddho Basabo, Dhaka. 9. Bijoy Nagar Tapa Tower, 169, Shaheed Syed Nazrul Islam Sharani, Purana Paltan (Old), Dhaka-1000. 10. Sepahibag 225, North Goran, Shepaibag, Dhaka. 11. Jatrabari (Bibir Fhuljan Market, 80/C, Uttar Jatrabari, Bibir Bagicha, Dhaka. Bagicha) 12. Jatrabari-2 33, Shaheed Faruk Road, Uttar Jatrabari, Dhaka. 13. North Banasree C-41, Road # 6, Uttar Banasree, Rampura, Dhaka. 14. South Banasree House # 76, Jahurul Islam Road (Main Road), Block-K, South Banasree, Goran, Dhaka-1219. 15. West Kafrul Palolic Mollick Plaza, 218/9, West Kafrul (Shewrapara), Rokeya Sharani, Dhaka. 16. Mirpur-6 House # 9/2, Section # 6, Avenue # 5, Block-G, Mirpur-2, Dhaka-1216. 17. Rupnagar 16/34, Rupnagar Residential Area, Mirpur, Dhaka-1216. 18. Pallabi 2/6, Pallabi Share Egaro, Mirpur, Dhaka. 19. Mohammadpur 14/23, Manama Turag Building, Shahjahan Road, Town Hall Mohammadpur, Dhaka. 20. Monsurabad Plot # 13-14, Road # 2, Monsurabad Residential Area, Adabor, Dhaka. 21. Rayer Bazar Monica Estate, 295/Jha/14, Rayer Bazar (Shikder Medical College Campus), Dhaka-1209. 22. East Nakhal Para House # 286/2, East Nakhal Para, Dhaka. 23. Sutrapur House # 61, Subas Bashu Avenue, Laxmibazar, Sutrapur, Dhaka. 24. Maniknagor 65/1/A, Maniknagar Wasa Road, Sobujbag, Dhaka. 25. Wari 36/1, Rankin Street, Wari, Dhaka. 26. Postogola 1/2, Arsin Gate, Eastern Housing Society, Postogola, Shyampur, Dhaka. -24-


27. 28. 29. 30.

Nazimuddin Raod Lalbagh Donia Uttara Shahjalal Avenue (Sector # 6) Nikunja Ashkona Tongi

90/91, Sir Nazimuddin Road, Lalbag, Dhaka. Plot # 54, Water Works Road, Lalbag, Dhaka. 554, Goal Barir Mor, Donia, Dhaka. Plot #1 & 2, Road # 13/D & 13/C, Shahjalal Avenue, Sector # 6, Uttara, Dhaka. 31. Plot # 15, Road # 6, Nekunja-2, Dhaka. 32. 301, Ashkona Bazar Road, Ashkona, Dhaka. 33. Badur Uddin Manson, Holding # 32, Cherag Ali Market, College Gate, Tongi, Gazipur. 34. Dohar Joypara College Market, Dohar, Dhaka. Source: Website of Shwapno (www.shwapno.com/store.php) 7.4. Promotion The 5 super shops do not expense high for their promotion. So they do not use TV because that is a costly medium. Rather, they use advertisement through different media such as newspaper, banner, billboard, leaflet, Internet etc. They often use various sales promotion techniques like cash discounts, buy one get one free, special package offer, bundle product offer, membership offer etc. to capture their customers and increase their market share. Sometimes they provide sms through cell phone operators in the customers‟ mobile phone informing their special offers. 7.5. People The people of super shops are suppliers, managers, employees etc. who work there for providing services to the customers. The people do their job sincerely so that the sales can be increased. The managers of the super shop take great attention to the shop‟s activity so that anything cannot get in a wrong direction. Most of the super shops employees are dressed well. They have definite dress for every single super shop so that the customers can identify them. The customers take help from them for purchasing a product. The employees work as a service provider. In fact, the service provider or contact person is very important to provide some services, for example, counseling, advising, educating and other occupational relationship-base services. In different cases, the contact person plays an important role what appears to be a moderately small part in service delivery. Sometimes the customers work as a people. Customers not only influence their own service outcomes, but they influence other customers as well. In the super shop, clients influence the service quality received by others- either upgrading or taking away from other clients' experiences. 7.6 Process Process is the actual delivery steps that the customer experiences or the operational stream of the service, also give customers evidence which to judge the service. Some services are exceptionally intricate, requiring the customer to take after a complicated & extensive series of activities to finish the process. The super shop business is one of them. The super shops maintain process in a complex but effective way. When a product is sold to the customer, the employee gives data input in a computer or uses a barcode reader to maintain database in the computer. Then it gives data -25-


to the head office or in a special office. Then the manager can know which product is sold. After that he gives order to deliver the particular product to the definite outlet. Then the product is delivered to the concerned outlet. In this way, the process comes to end. 7.7 Physical Evidence The physical evidence of service includes all the tangible representations of the service, for example, letterhead, brochures, business cards, report formats, signage and equipment. The super shops maintain their physical evidence in a tremendous way. The super shops give their customers business cards, brochures, leaflets etc. Their shops always remain neat & clean. The physical evidence is important so much to a business organization like super shop because the customers are directly come here and take services from the employees. If the physical evidence does not maintain accurately, then the customer can be unpleased & never return to the super shop. The refrigeration system is also included in physical evidence. The cold drink & beer such as- Coca-Cola, Pepsi, Pran Mango Drink, Black Horse have to be served chilled. On the other hand, the raw meat, vegetables, fish etc. need to be delivered fresh. So the physical evidence is the essential marketing mix to the super shops. 8. RECOMMENDATIONS & CONCLUSION The study has identified and analyzed the use of product/service, price, place (distribution), promotion, people, process and physical evidence- the 7Ps as controllable tactical marketing tools utilized and practiced by the 5 super shops- Agora, Almas Super Shop, Best Buy, Meena Bazaar and Shwapno in Bangladesh especially in Dhaka city. These 7Ps are mutually influential in the service marketing of super shops. As a result, super shops should learn about the needs, wants and demands of the customers before creating and distributing their marketing offers to their customers through designing the integrated service marketing mix (7Ps). They should also know about the potential opportunities that they can provide to their customers in future and consider challenges in respect to their internal and external environments. However, customers should know about their gains from the marketing offers of the super shops. People affect all the perspectives in service creation and service delivery. If super shops improve the performance of marketing mixes (7Ps), it is necessary to concentrate on people, such as, the improvement of employee quality, recruitment & selection, work design & analysis, training and development, enhancement of competitiveness & adaptation, encouragement of the morale and exploration of the potential, salary and pay management, mental & physical health, safety & hygiene issue, retention of work relation, assessment of work performance, welfare management of the employees and so on. When the super shops can make good human resource management, the entire performance can also be enhanced and this will be the easiest way to save efforts. Therefore, the use of 7Ps in super shops in Bangladesh has given the light to the present days‟ consumers who are shopping in such large scale air conditioning retail shops to satisfy their various types of daily necessities. However, the study has practical implications for the entrepreneurs, investors, policymakers, industry experts, media, and domain experts of super shop businesses in Bangladesh. -26-


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Role of Bitcoin in Global Portfolio - An Empirical Study A Kotishwar* Department of Master of Business Administration, CMR College of Engineering & Technology, Medchal Road, Hyderabad, Telagana, Email Id: [email protected]

Abstract In the modern economy role of electronic currency is playing a vital role for exchanging of goods and services between the countries in present days. There are many crypto currencies which are traded by the investors among them bitcoin has merged global leader. This study has been emphasized from the period of 2011-2015. Johanson co-integrated analysis has been applied on ADF values (Augmented Dicky Fuller) and formed the co-integration with select global assets along with dollar index. The granger casualty test results unveil that gold is the only asset class which is getting influenced by the dollar index. Modigliani risk adjusted method shows that performance of bitcoin is superior than the other asset classes. Vector auto regression analysis indicates that MSCI, gold and bitcoin future momentum is expected to go downside when sentiment index moves upside. This study is useful to the investors fraternity like global exporters and importers, investors of currency and retail investors of bitcoin. Keywords: Bitcoin, ADF values, MSCI, Global Reality Index, Sentiment Index.



Reference to this paper should be made as follows: A Kotishwar (2016), “Role of Bitcoin in Global Portfolio An Empirical Study”, Int. J. of Trade and Commerce-IIARTC, Vol. 5, No. 1, pp. 30-38

Role of Bitcoin in Global Portfolio - An Empirical Study A Kotishwar

1. INTRODUCTION Bitcoin is dispersed basic cash that adopts a peer-to-peer accord arrangement to affirm and authenticate contracts. The Bitcoin chain was arranged and begun in January 2009 by a association of programmers under the pseudonym of “Satoshi Nakamoto,” based on the perception of open-source crypto-currency 1 defined by cryptologist Wei Dai in 1998. Significant to Bitcoin is its autonomy from any academy or authority, granting any keen parties to enlist in a direct budgetary contract at a low cost. Rather of believing a financial mediator to intervene and certify an agreement, all authentic agreements are encrypted into a single agreed-upon past or journal of agreements. This completely averts anyone’s endeavor to spend the same coin numerous times or to build false Bitcoin. 2,000

1,600

1,200

800

400

0 5

10

15

20

25

BITCOIN MSCI

30 GBI SHARIA

35

40

45

50

ISI GOLD

Bitcoin works just like currency. It can be acquired or disposed off in currency swaps, Mt. Gox being the most frequently recycled one. It can also serves as premium for commodity or maintenance at a flourishing number of employments. An agreement is built by “sending” Bit coins to the location of the account to be credited. Once an agreement is built, it is advertised honestly among the network, which is convinced of persons, known as “miners,” who allot measuring capacity to clear up the agreements. These agreements are “pending” until the bulk of the organization certifies they are accurate. Then, the documented section is set to the public section group, and the network starts to clear up the next contract section. To appreciate anonymity, buyers are cheered to design new locations for each agreement to be accepted, yet the public section group and account balances can be drawn to channel accounts and buyers. Since the establishment of Bitcoin, proof-of-work has been the main design of peer-to-peer crypto currency. The approach of proof-of-work has been the determination of casting and security model of the study. 2. REVIEW OF LITERATURE Dafni-Maria Nerantzaki: Bitcoin is the online virtual currency relies on a combination of cryptographic protection and a peer-to-peer protocol for witnessing settlements. In spite of this burgeoning usage, research on users’ attitudes towards Bitcoin is very limited. The paper aims to fill this gap by investigating consumers’ attitudes towards online payments and adoption of Bitcoin in Greece. An empirical study was conducted via an online survey tool. Internet users -31-


have been chosen to be surveyed as non-users haven’t favorable attitudes towards the use of Bitcoin. Dini Amalia Dewi, and Subiakto Soekarno: The purpose of this study is to analyze the risk and return on bitcoin, as an alternative investment, and how the bitcoin’ performance compared with other investment instruments such as gold and stock index in Indonesia, which is LQ45 index. The risk and return, performance evaluation and optimum portfolio formulas applied to find the result. The finding result shows that bitcoin is good for short–term period investment and it is good for investors who are risk seekers. Mynampati Uma Devi: The focus of this analysis has been done from currencies and global assets class perspective, This analysis had proven that crude oil and dollar index are having impact on Bitcoin but at the same point of time Global economy impact not been observed on the fluctuations of electronic currencies. With the volatility formulae Bitcoin has been compared with the global assets classes and BDI the risk level is found to be ignorable amount i.e., less than Global equity, Gold, but more than bond instruments. The performance measure calmer ratio has proven that the Bitcoin vs. Yen, Great Britain Pound and Canadian Dollar, are found to be stronger when it is compared with other select currencies. Michael Bedford Taylor: Recently, the Bitcoin crypto currency has been an international sensation. This paper tells the story of Bitcoin hardware: how a group of early-adopters selforganized and enhanced the creation of an entire new industry, leading to the development of machines, including ASICs that had orders of magnitude better performance than what Dell and Intel could provide. Joseph Bonneau, Andrew Millerx, Jeremy Clark, and Arvind Narayanan: They map the design space for numerous proposed modifications, providing comparative analyses for alternative consensus mechanisms, currency allocation mechanisms, computational puzzles, and key management tools. Finally we provide new insights on what we term disintermediation protocols, which absolve the need for trusted intermediaries in an interesting set of applications. We identify three general disintermediation strategies and provide a detailed comparison. Mihaela Iavorschi: in this study they analyzed the theoretical principles underlying the bitcoin. This study shows that the bitcoin largely meets the role of natural money of gold and silver, in compliance to the free market’s behavior. This allows the research scholars to observe the fact that people are aware of the negative implications the state’s intervention has in the monetary filed, thus deciding to create and use their own currency in online transactions. Jerry L. Jordan: With full restoration of the protection of property and enforcement of contracts by the U.S. judicial system, a gold-backed, market driven private currency would not suffer the same vulnerabilities to political whims as gold backing of the official currency. The Founders’ vision of a just, and minimal, government that serves the people, we have evolved to a government bureaucracy that believes, “If it moves, tax it; if it keeps moving, regulate it; if it stops moving, subsidize it”. The first two policies taxation and regulation must be dealt with for any currency competition to be available. Marc Gronwald: This paper deals with the economics of Bitcoin in two ways. First, it broadens the discussion on how to capture Bitcoin using economic terms. Center stage in this analysis takes the discussion of some unique characteristics of this market as well as the comparison of Bitcoin -32-


and gold. Second, the paper empirically analyses Bitcoin prices using an autoregressive jumpintensity GARCH model; a model tested and proven by the empirical finance community. Results suggest that Bitcoin price are particularly marked by extreme price movements; a behavior generally observed in immature markets. Felix Brezo and Pablo G: Bitcoin is an electronic currency designed to use a public protocol that implements it in a totally decentralized manner, so as not to need the control of any central issuing organization that manages it. Though still in development, it has been proven to be a modern payment system referred to have been used in some procedures commonly associated to money laundering or tracking of illegal substances of various kinds. Thus, in this article, we analyses those features which transform such a crypto currency in a useful tool to perform any kind of transactions far from the control of any kind of regulatory agency, as well as we pinpoint some of the fields in which their usage can derive in new illicit behaviors. Garima Chaudhary: The Bitcoin transaction is a digitally signed message to take effect it must be recorded in a public ledger or public transaction database called the block chain. Approximately every ten minutes a bundle of transactions, called a "block", is added to the block chain. The incentive for this accounting process, known as "mining", carries a reward of 25 bitcoins per block added to the block chain. This 25 bitcoins reward maintains the integrity of the Bitcoin system by allowing the computers that confirm transactions and also mint new bitcoins in the process. Bitcoin payment processing fees are optional, and generally substantially lower than those of credit cards or money transfers. 3. RESEARCH GAP In modern economy of global asset classes, bitcoin has emerged as strong electronic currency in recent past. Across the globe people started using the bitcoin to replace the normal currency. Though bitcoin is having a less history; many research scholars had done research in many angles. This virtual currency is having many hurdles in its path because many countries federal banks have blocked the crypto currency as exchanging instrument. By reading of the many research papers and thesis of virtual or crypto currency I found a gap of research, where how bitcoin returns performance when it is compared with global assets bench marks. 4. 1. 2. 3. 4.

OBJECTIVES OF THE STUDY To measure the relationship between bitcoin, MSCI, global bond index, gold and reality. To measure the global currency impact on global assets. To study the bitcoin influence on global asset returns performance. To study the investor sentiment index impact on global asset class movement.

5. SCOPE OF THE STUDY This study has been emphasized from the period of 2011-2015 the focus of the analysis is to identify the bitcoin momentum along with the select global asset. 6. RESEARCH METHODOLOGY Empirical study: 1. Gold -33-


2. Bitcoin 3. GBI 4. Global Reality index 5. MSCI 6. Sentiment index 7. Global Sharia index 8. Dollar index This study has been done on the basis of secondary data and by using descriptive statistical tools for the analysis. The following formulas were applied. Augmented Dickey-Fuller Test: Augmented Dickey-Fuller Test is a test for a unit root in a time series sample. It is an augmented version of the Dickey-Filler test for a larger and more complicated set of time series models. Co-integration: Co-integration is a statistical property of time series variables. Two or more time series are co-integrated if they share a common stochastic drift. If two time series x and y are cointegrated, a liner combination of them must be stationary. Y – Βx = u, Where, u is stationary. Granger causality test: Granger causality test is a statistical hypothesis test for determining whether one time series is useful in forecasting another. A time series X is said to Granger-cause Y if it can be shown, usually through a series of t-tests and F-tests on lagged values of X, that those X values provide statistically significant information about future values of Y.  Null hypothesis: The null hypothesis refers to a general statement or default position that there is No relationship between two measured phenomena. Rejecting or disproving the null hypothesis- and thus concluding that there is a relationship between two phenomena.  Alternative hypothesis: In statistical hypothesis testing, the alternative hypothesis is applicable when probability is > 0.5. Alternative hypothesis is that the quality is poorer in the second half of the record. Cross Correlogram: In the analysis of data, a Correlogram is an image of correlation statistics. This is used only when we have time series analysis. Modigliani risk-adjusted performance: It is a measure of the risk-adjusted returns of some investment portfolio. It measures the returns of the portfolio, adjusted for the risk of the portfolio relative to that of some benchmark. It is derived from the widely used Sharpe ratio, but it has the significant advantage of being in units of percent return, which makes it dramatically more intuitive to interpret. Vector Autoregressive models: VAR models (vector autoregressive models) are used for multivariate time series. The structure is that each variable is a linear function of past lags of itself and past lags of the other variables. The vector autoregressive model of order 1, denoted as VAR (1), is as follows: xt,1=α1+ϕ11xt−1,1+ϕ12xt−1,2+ϕ13xt−1,3+wt,1 xt,2=α2+ϕ21xt−1,1+ϕ22xt−1,2+ϕ23xt−1,3+wt,2 xt,3=α3+ϕ31xt−1,1+ϕ32xt−1,2+ϕ33xt−1,3+wt,3

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7. 1.

DATA ANALYSIS To measure the relationship between bitcoin, MSCI, global bond index, gold and reality. Table 1: To measure the relationship between bitcoin, MSCI, global bond index, gold and reality. Bitcoin GBI Gold MSCI Reality Index Bitcoin Pearson Correlation 1 -0.085 -.686*** .449** .446** Sig. (2-tailed) 0.555 0 0.001 0.001 N 51 51 51 51 51 GBI Pearson Correlation -0.085 1 .493** -.605** -0.226 Sig. (2-tailed) 0.555 0 0 0.112 N 51 51 51 51 51 Gold Pearson Correlation -.686** .493** 1 -.836** -.742** Sig. (2-tailed) 0 0 0 0 N 51 51 51 51 51 MSCI Pearson Correlation .449** -.605** -.836** 1 .659** Sig. (2-tailed) 0.001 0 0 0 N 51 51 51 51 51 Reality Pearson Correlation .446** -0.226 -.742** .659** 1 Index Sig. (2-tailed) 0.001 0.112 0 0 N 51 51 51 51 51 Source: Complied Data The above table indicates that bitcoin is having slightly to strong negative correlation with global bond index and gold but of the same time it is having moderately positive correlation with MSCI and reality index. 1. To measure the global currency impact on global assets. Table 2: Measure the global currency impact on global assets. Log Likelihood by Rank (rows) and Model (columns) 0

-662.7328

-662.7328

-661.3834

-661.3834

-658.6337

1

-646.9065

-645.017

-643.668

-643.6676

-641.0159

2

-633.7916

-629.522

-628.1957

-627.7172

-625.0837

3

-623.6266

-619.099

-617.919

-617.4402

-614.8079

4

-616.7375

-611.2618

-610.0846

-609.4635

-606.8397

5 -615.5552 -605.8956 -605.8956 -605.1994 -605.1994 Source: Complied Data The above analysis of johansen co-integration test indicates that the log likelihood rank values where in decreasing mode in both non, linear and quadratic intersect trend models among dollar index with select asset classes. Hence data is stated to be co integrated among the variables. -35-


Table 3: Granger Causality Test Null Hypothesis Obs F-Statistic Prob. DMSCI does not Granger Cause DALLOR 48 3.4568 0.0405 DALLOR does not Granger Cause DMSCI 2.29559 0.1129 DGOLD does not Granger Cause DALLOR 48 0.14522 0.8653 DALLOR does not Granger Cause DGOLD 0.10849 0.8974 DBOND does not Granger Cause DALLOR 48 5.08108 0.0104 DALLOR does not Granger Gause DBOND 1.09375 0.3441 DREALITY does not Granger Cause DALLOR 48 4.88357 0.0123 DALLOR does not Granger Cause DREALITY 1.20866 0.3085 Source: Complied Data The granger causality test has been applied on ADF stationery data with co-integration the null hypothesis has been accepted with dollar index to MSCI, bond reality and reject the H1 alternative hypothesis it means the dollar index is not causing the MSCI, bond and reality. The null hypothesis of dollar with gold has been rejected and accepted. The H1 alternative hypothesis that indicates gold, got influenced with global currency dollar index. 3. To study the bitcoin influence on global asset returns performance. Table 4: performance measure by Modigliani risk adjusted method Average of Rp-Rf Rp-Rf S Bitcoin 14.33 47.82 0.3 Bond -1.21 4.75 -0.25 Gold -1.53 3.25 -0.47 MSCI 1.11 5.81 0.19 Reality -0.07 3.06 -0.02 Sharia 0.16 2.36 0.07 Source: Complied Data Interpretation: The above analysis of performance measure by Modigliani risk adjusted method indicates that bond, gold and reality had given negative performance but MSCI, sharia and bitcoin had given positive performance during the study period. 4. To study the investor sentiment index impact on global asset class movement. Inverse Roots of AR Characteristic Polynomial 1.5

1.0

0.5

0.0

-0.5

-1.0

-1.5 -1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

The above cholesky polynomial graph indicates that all the variables were observed inside the circle, which means that all variables data is normally distributed. Hense VAR can be applied. -36-


Vector Auto regression Estimate

P-positive n- Negative : Source: Complied Data -37-


The above analysis vector auto regression estimates that MSCI, gold ,and bitcoin goes along with sentiment as the value of MSCI, gold, bitcoin increases then the value of bond and reality goes downward and as the value bond and reality increases then the value of MSCI, gold, bitcoin goes downward. 8.    

FINDINGS OF THE STUDY The study observe that MSCI and reality indices are moving with bitcoin but during the same study period gold and bond are having negative co-relation momentum. Global currency is causing gold price but MSCI, bond, and reality were failed to influence by the dollar index. The study observed that performance returns of equity index MSCI, sharia and bitcoin is superior but bond, gold and reality performance is found to be inferior. The bitcoin, MSCI and gold where predicted upside based on sentiment index in the future period.

9. CONCLUSION I conclude the analysis of Role of Bitcoin In Asset Class Portfolio - A Study the analysis been emphasized the global asset class variables (MSCI, GBI, reality, gold and bitcoin) variables where considered and found that the bitcoin performance are superior than the other asset classes the bitcoin behaviour is observed along with the select global asset classes and considered that global equity index and reality index where behaving in a same manner. Hence there is a further scope to do research in this area by considering various global economic factors influence on bitcoin returns. REFERENCES [1]. Bitcoin: A Peer-to-Peer Electronic Cash System - S Nakamoto -https: // bitcoin. Org / bitcoin.pdf [2]. Bitcoin: An Innovative Alternative Digital Currency - R Grinberg - http://papers.ssrn.com/ sol3/ papers.cfm?abstract_id=1817857 [3]. Bitcoin: Network Based Currency and Its Self-Organizing Emergency - Michael Paetau https://isaconf.confex.com/isaconf/wc2014/webprogram/Paper48144.html [4]. http://www.coindesk.com/price/ (Bitcoin Data) [5]. http://www.investing.com/currencies/ (EURO,GBP,SWISS FRANC, DOLLAR ,YEN, CAD Data) [6]. http://www.mcxindia.com/sitepages/HistoricalDataForVolume.aspx (Gold Data) [7]. http://www.msci.com/products/indexes/performance.html (MSCI Data) [8]. http://www.pimcoindex.com/Pages/indexdata.aspx?ticker=GLAD (PIMCO Data) [9]. Information propagation in the Bitcoin network - C Decker – ieeexplore .ieee. org/ xpls / abs_all.jsp.

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Human Resource Development Growth Strategy: An Exploratory Study on State Bank of India R. S. Meena* Faculty of Commerce, BHU-Varanasi (U.P.) India Email Id: [email protected]

Abstract This paper aims to investigate the HR policy initiatives of the State Bank of India, the country’s oldest and largest Bank which is going through a momentous phase of Change and Transformation. The State Bank of India is also attempting to change its age traditional thinking, attitudes and take all employees together on this exciting road to Transformation. Three notable initiatives in the recent past are considered under the purview of this paper. Through these initiatives which are designed by the bank for creating a sense of belief and togetherness, SBI has been able to strengthen its base and core in the changed environment which is clear from the recent performances and awards received by the bank. The focus of this paper is on the HR initiatives taken by the management of SBI and its relation with the profitability of the organization concluded that how development in the human resource is related to growth of a concern. Keywords: HR strategy, growth strategy, policy initiatives, SBI and development.



Reference to this paper should be made as follows: R. S. Meena (2016), “Human Resource Development Growth Strategy: A Exploratory Study on State Bank of India”, Int. J. of Trade and Commerce-IIARTC, Vol. 5, No. 1, pp. 39-46

Human Resource Development Growth Strategy: An Exploratory Study on State Bank of India R. S. Meena

1. INTRODUCTION Human resource is one of the most important elements of any business organization and it becomes much more important when the business is a part of service industry where the business and its growth primarily depend on the quality of the service provided by the human resource. Human resources is a term used to describe the individuals who make up the workforce of an organization and with the changing business environment the development of the existing human resource and search for new and efficient human resource has become a strategy in today’s world for survival and growth. The State Bank of India, the country’s oldest and largest Bank which is going through a momentous phase of Change and Transformation is also attempting to change old thinking, attitudes and collectively with all employees on this exciting road to Transformation. The transformation of the bank was felt by Mr. O.P. Bhatt the then Chairman of SBI who took over the this position in 2006. In his view: “Transformation is not instantaneous. It takes decades in some cases. That is why we need to start the process today. We are already 20 years too late” - O.P. Bhatt Chairman S.B.I, September 2006 With liberalization in 1991 many Multinational Companies entered into Indian market and this led to a change in the business environment. The banking sector also faced a similar change when the private sectors banks entered the banking industry. There was a total change in the environment in which the banks operated. The emerging private sector banks with aggressive strategy and different work culture captured a big share of the business from the public sector banks. The rich and the youth customers were mostly heading towards the private sector banks in search of better service. The ICICI bank emerged as an alternative of SBI and became the second largest commercial bank in India and was thought to replace SBI as the largest commercial in the country by 2010. The task was not easy for SBI to maintain its legacy and to get back the market share which it has lost to the private banks. (Rastogi & Rastogi, 2010) The top management team led by Mr. O.P. Bhatt recognized the need for a transformation. They identified areas that needed to be transformed and communicated the new transformation agenda to all the people in the organization. The top management realized that to achieve the transformation they sought, getting the grassroots level employees on board was extremely important. They wanted to change the mentality of the employees and wanted to infuse that customers were the king and they have to satisfy them. So, with the objective to improve communication skills of the employees the first initiative of its kind named Parivartan (which means transformation/change) was undertaken by the management. (IBS Center for Management Research, 2009) The journey of transformation did not end with Parivartan, to journey continued with a new programme named Citizen SBI with the objective of spiritual development in the employees; And then, Udaan, the third initiative, which was designed to create a sense of difference and pride in the employees of SBI was finished. 2. OBJECTIVE OF THE STUDY The objectives of this paper are as follows: (i) To investigate the various HR initiatives taken by the bank during the period of transformation. (ii) To investigate the relationship between the HR initiatives and the growth of the concern. -40-


3. METHODOLOGY The present study is a case study done on State Bank of India with the prime focus to know the relationship between HR initiatives and growth of a concern. For the study the data has been taken from secondary sources. To know the various human resource development strategies the researcher has taken help from various studies done on HR initiatives of SBI and from various interviews and lectures given by the then Chairman of SBI, Mr. O.P. Bhatt. To find the relationship between HR initiatives and growth of the organization the researcher has taken help from the Annual Reports of SBI and data from Reserve Bank of India. The data is taken from the year 2006-07 (the year just preceding Parivarthan – the first HR initiative) to 2010-11(the year following Udaan – the last major HR initiative till date) to show a trend in the various aspects of the business. The researcher has analyzed the data with the help of Line and Bar Diagram to show the trend in the business growth and profitability. The Remaining paper is organized with the HR initiatives and the three phased programme as envisaged by the State Bank of India in the recent past followed by the Results & Discussion and concludes at last. 4. HR INITIATIVES- AN EXPOSITORY ANALYSIS The whole process of conversion and changing the mindset of employees started with the identification of various important factors both internal and external that were prominent and caused the poor performance. The internal factors were more prominent and needed more attention to increase its strength. Some of the internal factors were traditional mindset of the employees, customer relations, hierarchy, staff shortage etc. So the focus was given on developing the human resource so that problems relating to HR can be solved and a better customer service can be provided to retain the existing customers and bring new customers. Taking all the factors into consideration a well-designed strategy needed to be introduced to bring required change in the organisation. (Rastogi & Rastogi, 2010) 5. PROJECT PARIVARTAN On 16th July 2007 SBI introduced its first ever HR initiative with the name Project Parivartan meant to bring change in the whole organization. The Parivartan initiative was reportedly the brainchild of Bhatt. The program was aimed at obtaining the support and acceptance of employees for the change initiatives undertaken by the bank, and at explaining to them why change was necessary. Employees in the organization were suffering from low self-confidence and a complete change in the approach and attitude was required for the large work force of the organisation. The front liners shall respond in a better way to the queries and requests of the customers and the middle level shall keep the performance targets in mind. The Project Parivartan was specially designed to activate the employees to the environmental change and bring the sense of togetherness among the work force. The campaign was divided in two phases, the first to cover the junior executives and the clerical staff that came out to 1,30,000 employees and the second phase covered 45,000 members of the subordinate staff. A strong message was required to be given through the project that can bring a mental change in the employees which was not possible only with sharing of facts and figures. It was decided to organise a two day workshop covering the different aspects of behavioral science to bring change and activate them about the transformation efforts. The -41-


program was divided into eight segments and four objectives to sensitize, to energize and to help the employees to become customer oriented and bring a sense of togetherness. (Bhatt, SBI - The Transformation Story, 2009) Parivartan was designed to give a team thinking platform but was not a regular exercise but aggressive enough to had a tremendous effect on the employees. The project caught the imagination of all the employees it made them to think in a positive way and forced them to change their attitude towards work. Based on a survey of SBI customers conducted by one of the leading Management Institutes in the country hired by SBI it was found that the programme had a biggest effect on the various aspects of the employees. The study after the project revealed that there was an improvement in the employees regarding knowledge about new products and services and also customer service and attention. 24 different aspects were studied and most of them gave a positive result. (Rastogi & Rastogi, 2010) Though the programme was a grand success and its positive effect were evident but a two day workshop was not enough the transformation required follow up and everyday reaffirmation at the workplace. To take the employees motivation to the next level another programme was conceived in September 2009 as Citizen SBI Campaign. 6. CITIZEN SBI Citizen SBI was another discovery and transformation initiative of Mr. O.P. Bhatt covering two hundred thousand plus employees of the Bank. The Bank has experienced a lot of changes during the 2-3 years post Parivartan. Project Citizen SBI is the next step to carry forward this good Change. The formulation of this Project has taken more than a year and a half to build up. Citizen SBI was more ambitious programme than Parivartan, while Parivartan aimed at making the staff aware of the problem on behavioral front and provided a platform to look into the changes required in their attitude; Citizen SBI was planned to touch the core value system of the employee inspired by the teachings of Swami Ranganathnanda of the Ram Krishna Mission. The campaign was designed at motivating the employees by an approach based on traditional values of Indian culture and philosophy of self development. The focus of this Project was to transform the Bank into a platform that provides inner fulfillment to its employees and tries to transform the communities around by going beyond institutional and personal success. (Bhatt, Chairman's Inaugural Message, 2009) Citizen SBI was a two day programme with the objective to give the employees a thought process, touching there soul and taking the customer relationship from commercial level to the service level. The programme started with a question to the participants that what they imagine of an ideal SBI Citizen and how it should act in various situations. During the project they were taught how they can convert them from the present state to the ideal state. Thus, the idea was to reflect upon how each one of them can contribute to self, to the bank, to the customer, to the society. To accomplish the task help was taken from 500 specifically trained trainers. (Rodrigues, 2009) 7. UDAAN (FLIGHT) After successful launch of the projects Parivartan and Citizen SBI, SBI has launched another HR initiative named Udaan in the late 2010. This program is aimed at appraising the employees about the outstanding achievements of the bank over the last four years (after Parivartan and Citizen SBI) -42-


and grooming them for their total transformation towards achieving the bank's aspirations to be amongst top 25 banks globally. It aimed to find out the individual contribution – what did I do? To motivate the employees further it was very important to let them know what they have done, what has been achieved, to create a sense of pride. In the programme the focus was to share the amazing story of transformation of the bank from a real crisis situation when the bank was losing its market share to the private banks like ICICI and its business in every aspect was declining to the position where it is now. The message was “though with the team efforts and willingness the bank has been successful in coming out of the situation but there is a long way to go on”. The programme highlighted the achievements of the bank inspiring the employees to raise the standards for future growth. During the program many Success stories of the bank was shared like customer base of 180 million, over 42 million transactions every day, over 17000 group branches and over 21500 ATMs, over 71 million debit card holders, Home loan portfolio of over Rs. 71,193 crores, over 4, 33,000 students have availed the Education loan and many others. And to motivate the employees further the bank has also shared with them what the bank has done and what is yet to be done citing examples of other banks that are doing better than SBI in some areas. The information was given about the other banks that were better than SBI based on the figures provided by RBI like United bank of India, despite of being much smaller bank was performing better as far as profit per employee and other income growth was concerned. This was done to make them realize though they have done better in the past but there is a long way ahead. The employees were motivated to work collectively and individually to bring more and more business. (Rastogi & Rastogi, 2010) 8. RESULTS AND DISCUSSION Human resource development has always been an area of prime focus for State Bank of India. Training and development of its human resource is always looked in as a continuous process in SBI. Prior to 2006 the employees of SBI were low in moral and their attitude towards customers was that the customers will come to them because of which it lost much of its market share to private banks like ICICI and HDFC bank. The then new chairman of SBI, Mr. O.P.Bhatt took the initiative to change the mindset of the employees with mass training programs and to take back those lost market shares. He has started his process of human resource development with Project Parivarthan and then followed with Citizen SBI and Udaan. The projects had a major impact on the business of the SBI. SBI was losing its market share from 2003-04 in respect of both advances and deposits. One of the major reasons for this was the attitude of their employees. From Figure 1and 2 a secular decline is visible during the three years from March, 2003 to March, 2005 but after that to March, 2007 it shows a steep decline in the market share during which ICICI bank became the second largest bank of India and was in the verge of becoming the No.1. Mr. O.P. then took the 1 st HR Initiative Parivartan on 16th July, 2007 with the motive of changing the attitudes of the employees. From the Graphs it can be seen that aggregate market share in both deposits and advances took off and started to increase from March, 2008 just after the Project Parivartan was initiated. -43-


Figure 1: Market Share Trend of Aggregate Deposits, SBI from 2003-2011

Source: Author’s calculation based on various Annual Reports of State Bank of India Figure 2: Market Share Trend of Aggregate Advance, SBI from 2003-2011

Source: Author’s calculation based on various Annual Reports of State Bank of India In case of Deposits (Figure 1) the growth in market share has shown a rapid increase in the two years after the Parivartan project. The market share which went to a lowest of 14.81% in March, 2007 went up to 15.44% in March, 2008 after Project Parivartan and then to a whopping 17.72% after one year on March, 2009, the highest in seven years starting March,2003. But it declined to 16.31% at the end of March, 2010. Again, in an increasingly competitive environment, SBI’s market share in total deposits stood at 16.40% in March’11 which is 9 bps higher than 16.31% in March 10, the period after Project Udaan. In case of Advances (Figure 2) it shows a steady growth after March, 2008 and rose to 16.4% in March, 2011. After the Project Parivartan the rate of decline reduced in 2007 and the results of the HR initiatives are visible from 2008 which shows an increasing trend in the market share of advances. -44-


One of the important aspects to measure the performance of any organization is its profitability. The growth in profit of SBI was very low in 2006 and 2007 if it compared with the Industry growth; this was the phase when SBI was struggling to compete with the emerging private banks. The competitive banking environment, shift of the young and rich customers towards private banks led to low profitability of SBI. Figure 3: Growth in Net Profit of SBI from 2006-2011

Source: Annual Reports of SBI and Statistical Table Relating to Banks in India With the introduction of the first HR initiative when the employees realized what was going around them in the industry and at what position SBI was therein made them change their attitude, thanks to Project Parivarthan that a shift can be seen in the growth of profitability of SBI. From the Figure 3 it can be seen how the trend in the growth of profitability of SBI has changed in comparison to the Industrial growth. In 2008 and 2009 SBI has outperformed the market with a growth of 48.17% and 35.55% respectively in comparison to 36.93% and 23.46% of the Industrial growth. However, in 2010 and 2011 the growth rate has declined in comparison to market, it was due to high increase in operating expenses compared to earlier years. The reasons which can be attributed to high operating expenses in 2010 and 2011 are sharp increase in number of employees, arrears for wage revision and additional contribution to pension. SBI which was suffering from low profitability and low business growth in the period 2003 to 2007 because of lower moral and poor attitude of its employees but when the moral and attitude of the employees were improved through various HR initiatives it resulted in increased business growth and increased profit at the time when the world economy was suffering from crisis. This clearly shows a direct relationship between human resource development and growth of a concern because SBI by developing its human resource has increased its market share in deposits and advances and also increased its profitability. 9. CONCLUSION Human resource is a very important tool in the hands of every business concern development of which can lead to growth and profitability. State bank of India which took its transformation strategy because of its poor performance in the industry started with developing its human -45-


resource and has set an example that how the same human resource which was the reason for decline in business, can be used to uplift your business growth by developing them. REFERENCES [1]. Batra, V., Srinivasan, K., & Maheshwari, P. (2011, June). Indian Banking Sector : Challenges unlikely to Derail the Progress Made. Retrieved January 12, 2012, from ICRA Website: www.icra.in/Files/ticker/Banking%20note-final.pdf [2]. Bhatt, O. P. (2009). Chairman's Inaugural Message. (C. S. Blog, Interviewer) [3]. Bhatt, O. P. (2009). SBI - The Transformation Story. Igniting the Genius Within. [4]. IBS Center for Management Research (2009). Project Parivartan: State Bank of India's Internal Communication Initiative. Retrieved January 16, 2012, from IBS Center for [5]. Management Research Website: http://www.icmrindia.org/casestudies /catalogue/Human Resource and Organization Behavior/HROB120.htm [6]. Meena, Dr. R.S. and Singh Pooja, “Human Resource Management Practices of SBI and HDFC Bank- A Comparative Study”, International Journal of Development Studies (IJDS Issn 0975-5799) Vol. VII Issue-II pp.144-54 [7]. Pramod, J. (2009). Making of a Financial Powerhouse : The SBI way to Surge Ahead. Mangalmay Journal of Management & Technology , 3 (2), 76-83. [8]. Rastogi, S., & Rastogi, I. (2010). Role of HR in Change Management. Asian Journal of Management Research , 98-113. [9]. Reserve Bank of India (2010). Statistical Tables Relating to Banks in India 2009-10. Reserve Bank of India Website. [10]. Rodrigues, R. (2009, August 23). Change Manager : State bank of India Leapfrogs Ahead of Competition. Business India , pp. 58-76. [11]. Shukla, T., & Singh, A. (2011). Banking on IT : Problems and Prospects in State Bank of India. International Journal of Research in Computer Application & Management , 1 (1), 4548. [12]. State Bank of India. (2008). Annual Report 2007-08. State Bank of India Website. [13]. State bank of India. (2009). Annual Report 2008-09. State bank of India Website. [14]. State Bank of India. (2010). Annual Report 2009-10. State Bank of India Website. [15]. State Bank of India. (2011). Annual Report 2010-11. State Bank of India Website.

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Comparative Study of Traditional Kirana Stores and Modern Organised Retail Outlets Amit Kumar Singh*a, Sanjay Kumar Rastogib, Naresh Kumarc aShriVekateshwara

University, Gajraula, U.P. (India) College, Moradabad, U.P. (India) Email Id: [email protected]

b, cHindu

Abstract There are serious concerns about the entry of organised retailing in the Indian food sector. What impact will it have on Kirana Store owners and the economy? Based on a study of the Indian food retailing industry, this article indicates that while these concerns are valid, there are more winners than losers in the process. The paper exemplified winners and losers with the help of statistical tools. Moreover, business steps and policy measures, the government can adopt, are also elaborated to resolve the issues of Kirana Stores and Modern Retail Outlets. Key words: Food & Grocery; Indian Food Retailing Sector; Kirana Stores; and Modern Retail Outlet.



Reference to this paper should be made as follows: Amit Kumar Singh, Sanjay Kumar Rastogi, Naresh Kumar (2016), “Comparative Study of Traditional Kirana Stores and Modern Organised Retail Outlets”, Int. J. of Trade and CommerceIIARTC, Vol. 5, No. 1, pp. 47-59

Comparative Study of Traditional Kirana Stores and Modern Organised Retail Outlets Amit Kumar Singh, Sanjay Kumar Rastogi, Naresh Kumar

1. INTRODUCTION Organised food retailing is relatively a new phenomenon in India, with the emergence of small western-style supermarkets since the 1990s. Most of the food products are sold through local 'wet' market vendors, roadside pushcart sellers or small grocery stores. Out of 15 million retail outlets, almost seven million sell food and grocery products. The vast majority of these are small kiosks (17 per cent), general provision stores (14 percent) and grocery stores (56 per cent of all rural retail outlets) run by a single trader and his family (M. Bhasi). Food and grocery retail in India is poised to grow further. According to KSA Technopak study, food and grocery retail sales have grown from Rs 3,81,000 crore in 1996, to Rs 8,66,000-crore in 2007 (Business Line: January 03, 2007). The National Sample Survey Organisation (NSSO) 66th round survey, covering the period from July 2009 – June 2010 is based on data collected from over one lakh households. The survey shows an average rural Indian household allocating 53.6 per cent of their total monthly consumption expenditure on food items. The corresponding share for urban household was less, at 40.7 per cent. All the analysis and forecasts undoubtedly show that food retailing in India has lot of potential and is expected to grow exponentially. In this context, the retail supply chain management takes the central stage in the retail trade. 2. REVIEW OF LITERATURE Sengupta A, (2008) discusses the birth of the first supermarket, Nilgiri‟s established in Bangalore in 1971. The emergence of modern retail business in India has a history spanning over 30 years. The paper is on food and grocery retail, biggest in India and the author tries to detail the drivers of revolution and growth focusing on the role of manufacturers, retailers and consumers. Chetan Ahya (2006) argues that the rising scale of organized retail distribution network and increasing competition will force players to focus on restructuring the whole supply chain to improve productivity and to provide a better deal to the customers. In her article, Veenu Sharma, throws light on the smaller cities becoming nodes of attraction for the marketers. The infrastructure developments, the changing customers, the ripple effect of the metros on the cities are contributing to the growth of these cities. These hot-spots are going to bring to the forefront the next wave of new cities that the retailers would be interested in looking at in order to gain „first mover‟ advantage and a foothold in the market. The economic slowdown has significantly increased the pace of shift from national brands to private labels or store brands among the organized retailers. It has increased the private label sales. This migration is not only linked to price (5-10% less than national brands), but also to various factors like improvement in product quality, packaging, presentation and retail experience. The study reports that the rise of private labels is resulting in many conflicts between retailers and brands owing to issues like margins, display and shelf space. The underdeveloped, traditional, and unidirectional supply chain increases inventory build-up coupled with operational inefficiencies for companies (Business Line: April 24, 2008).The spurt in the organised retail business in terms of the number of retail chains across the country testifies the growing acceptance of the modern retail format and the shift in the customer preferences from the -48-


traditional kirana stores to huge retail outlets which have made shopping a pleasant experience. The earlier reluctance to visit the small typical grocery store is replaced by new enthusiasm and excitement on the part of the 21st century consumers. The new realities and changing dynamics of the retail trade prompted the researcher to examine in detail how issues related to supply chain – the critical success factor in the F&G retail format – are addressed. Hence, the research paper entitled has been prepared on the basis of judgement sampling and survey work. “A Comparative Study of Traditional Kirana Stores and Modern Organised Retail Outlets”. 3.  

OBJECTIVES OF THE STUDY To assess the degree of competition among the food and grocery (F&G) retail outlets; and To determine the performance of the Food and Grocery (F&G) retail outlets using different metrics.

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TESTING OF HYPOTHESIS H1: Distribution of the sales per square foot of organised retail outlets and the kirana stores are different; H2: Distribution of sales per employee of organised retail outlets and the kirana stores are different; and H3: Distribution of monthly sales of organised retail outlets and the kirana stores are different.

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5. RESEARCH METHODOLOGY The Food and Grocery (F&G) retail segment in India is unique. F&G can be broadly categorised into organised and unorganised retail. The organised retail can be further categorised into corporate retail chains and individual standalone retail outlets. For the purpose of the study, the researcher has considered all the three segments namely, corporate retail chains, standalone retail outlets and kirana stores. The survey has been conducted in Delhi areas in July-September, 2015. Also, an attempt is made to ascertain the practices adopted by unorganised sector (kirana stores) in comparison with organised sector with respect to the adoption of modern practices. Table 1: Sources of Information Universe Retail outlets (kirana stores, corporate retail chains and standalone retail outlets) in NCR. Sampling unit Retail outlets Sampling Technique Judgemental Sampling Primary Sources a) Structured Questionnaire – Different sets of questionnaires were administered on organised outlets and unorganised kirana stores. b) Personnel Interviews with corporate office personnel, store managers, operators, supervisors of organised outlets and kirana store owners. Secondary Sources Journals, Periodicals, Business Magazines, Newspapers, Corporate Retail Chains‟ Websites, Retail Organisations‟/Associations‟ Websites, pamphlets and catalogues. Given the structure of the Indian retail sector (F&G) which is still in the „growth‟ stage, it was felt appropriate to select the sample units from both organised and unorganised sectors. 6. 

DATA TABULATION AND ANALYSIS Microsoft Access 2007 was used for database creation and data entry purposes. -49-


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Microsoft Access 2007 and Microsoft Excel 2007 were used for data filtering, sorting and drawing charts. SPSS Ver 16.0 was used for descriptive analysis, testing of hypothesis (both parametric and non-parametric) and multivariate analysis.

7. ANALYSIS OF THE SURVEY DATA A study by McKinsey Global Institute (MGI) suggest that if India continues its current growth, average household income will triple in the next 15 years and the private consumption will quadruple to reach Rs 70 trillion in 2025. Indian consumer spending will shift substantially from informal economy, with its individual traders, to the more efficient formal economy of organised businesses. That transition will lower prices and further boost demand. This corroborates the fact that the organised retail in India will gain further momentum and have lot of potential for growth. With challenging economic conditions in the western world and fear of prolonged slow growth, the focus is shifting to fast growing economies like India. The consistent resilience of Indian economy and healthy domestic consumption growth will accentuate organised food retail which can be sustained through better management of retail supply chain. This is the opportune time for the Indian retailers to establish, strengthen and exploit the supply chain to their advantage. As Government of India may introduce the FDI in multi-brand retail any time now, the retail majors such as Wal-Mart, Tesco and Carrefour will use the „carpet-bombing‟ strategy to establish a number of outlets. With their innovative marketing and promotional strategies and the successful supply chain strategies, they try to woo away the Indian customers from the present retailers towards them within the shortest span of time available by „splitting the market‟. So the Indian retailers need to ward off the forthcoming competition by entrenching their supply chain both independently and also collaborating with each other. When sample data do not meet the basic assumptions that underlie the parametric procedure (e.g. normality or homogeneity of variance), nonparametric methods are used. Kolomogorov-Smirnov test is used to find whether the given distribution is normally distributed or not. WilcoxonMann-Whitney independent two sample test is used to find the independence of two populations. I. Comparison of Sales per Sq. foot (Rs.) The investigator was interested in comparing the sales per square foot of organised retail outlets and unorganised kirana stores. Table 2 show the information regarding sales per square foot. Further, non-parametric test was used to test the difference. The result is as follows: Table 2: Comparison of Sales per Square foot Kirana Stores Organised Outlets Sales (Rs.) No. of Outlets Percentage No. of Outlets Percentage Less than 250 69 34.5 17 11.3 250 – 500 35 17.5 22 14.7 500 – 750 22 11.0 30 20.0 750 – 1000 15 7.5 48 32.0 1000 – 1250 28 14.0 22 14.7 1250 – 1500 16 8.0 7 4.7 1500 – 1750 5 2.5 2 1.3 1750 – 2000 6 3.0 1 0.7 More than 2000 4 2.0 1 0.7 Total 200 100.0 150 100.0 Source: Field Survey. -50-


Hypothesis1 : Distribution of the sales per square foot of organised retail outlets and the kirana stores are different. One sample Kolomogorov-Smirnov test shows that the metric sales per square foot of kirana stores were not normally distributed (p < 0.05). But the sales per square foot of organised retail outlets were normally distributed (p > .05) (Table 3). Table 3: One-Sample Kolmogorov-Smirnov Test (Sales per Square Foot) Sales per Sq. Foot Kirana Stores Organised Retail Outlets N 200 150 Normal Parametersa Mean 663.9800 758.8117 Std. Deviation 599.30898 363.54617 Most Extreme Differences Absolute 0.157 0.062 Positive 0.157 0.062 Negative -0.143 -0.050 Kolmogorov-Smirnov Z 2.221 0.000 0.620 Asymp. Sig. (2-tailed) a. Test distribution is Normal. Source: Researchers analysis of primary data Wilcoxon-Mann-Whitney independent two sample test is used to find the independence of the two populations. Table 4: Mann-Whitney Test (Sales per Square foot) Ranks Kira_or_Organ N Mean Rank Sum of Ranks Sales per Sq. Organised Retail Outlets 150 196.97 29545.50 ft. Kirana Stores 200 159.40 31879.50 Total 350 Source: Researchers analysis of primary data Table 5: Test Statistics (Sales per Square Foot) Test Statisticsa Sales_Sq_Mt Mann-Whitney U 11779.500 Wilcoxon W 31879.500 Z -3.438 0.001 Asymp. Sig. (2-tailed) a. Grouping Variable: Kira_or_Organ Source: Researchers analysis of primary data The result (Table 4 and Table 5) suggests that there exists statistically significant difference between the underlying distributions of the sales per square foot of organised retail outlets and the kirana stores (z = -3.438, p < 0.05). Mann-Whitney Test is more conservative than the parametric test such as t-test. The sales per square foot of an organised retail outlet is greater than -51-


that of kirana store. The two sample independent t-test (Table 6 and Table 7) does suggest that the sales per square foot is not statistically different (t=1.833, p>0.05). Table 6: Independent Two-Sample T-test (Sales per Square foot) Group Statistics Kira_or_Organ N Mean Std. Deviation Std. Error Mean Organised Retail Outlets 150 758.8117 363.54617 29.68342 Kirana Stores 200 663.9800 599.30898 42.37754 Source: Researchers analysis of primary data Table 7: Equality of Variances (Sales per Square foot) Levene's Test for Equality of t-test for Equality of Means Variances Sales_Sq_ft F Sig. t df Sig. Mean Std. 95% Confidence (2- Difference Error Interval of the tailed) Difference Difference Lower Upper Equal 36.66 0.000 1.715 348 0.087 94.832 55.285 -13.902 203.566 variances assumed Equal 1.833 334.6 0.068 94 51.739 -6.9437 196.607 variances .832 not assumed Source: Researchers analysis of primary data II Comparison of Sales per Employee (Rs. in Lakhs) Comparison of the sales per employee of organised retail outlets and unorganised kirana stores was done. Table 8 showed the information regarding sales per employee. Also, non-parametric test was used to compare the same. The result is as follows. Table 8: Comparison of Sales per Employee (Rs. in Lakhs) Organises Retail Outlets Kirana Stores Amount No. of Percentage Amount No. of Percentage (Rs.) Outlets (Rs.) Outlets < 0.3 3 2 < 0.1 21 10.5 0.3 – 0.6 18 12 0.1 – 0.2 30 15 0.6 – 0.9 32 21 0.2 – 0.3 30 15 0.9 – 1.2 21 14 0.3 - .04 22 11 1.2 – 1.5 36 24 0.4 – 0.5 20 10 1.5 – 1.8 24 16 0.5 – 0.6 47 23.5 1.8 – 2.1 6 4 0.6 – 0.7 0 0 2.1 – 2.4 2 1 0.7 – 0.8 22 11 2.4 – 2.7 0 0 0.8 – 0.9 2 1 2.7 – 3.0 4 3 0.9 – 1.0 2 1 3.0 – > 4 3 1.0 - > 4 2 Total 150 100 Total 200 100 Source: Field Survey. Source: Field Survey. -52-


Hypothesis2 : Distribution of sales per employee of organised retail outlets and the kirana stores are different One sample Kolomogorov-smirnov test shows that the metric, sales per employee of kirana stores (p