1
“TAPMI SCHOOL OF BUSINESS”
MANIPAL UNIVERSITY JAIPUR-303007, RAJASTHAN, INDIA,APRIL 2014
“Store Mystery Shopping Exercise”
“Interview and Feedback from Store Manager in 5 Stores”
INDUSTRY PROJECT
Submitted in partial fulfillment of the requirements for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
PREPARED BY: UNDER GUIDANCE OF:
Saumya poonia Dr. Davis Lazarus
M.P.Sinju
Piyush Bhati
Ronit Kaur
Abhishek Kumar
2
CANDIDATE’S DECLARATION
I hereby certify that Industry project entitled “MYSTERY SHOPPING” in partial fulfillment of the
requirements for the award of the Degree of Master of Business Administration submitted to the
Department of Management, Manipal University Jaipur, is an authentic record of our own work carried
out during the period from 18/09/2014 to 1/10/2014 under the supervision of Mr. Davis Lazarus,
Associate Professor, Manipal University Jaipur.
I have not submitted the matter presented in this dissertation for the award of any other degree of this or
any other Institute.
Date: 1/10/2014 Signature
Place: Jaipur M.P.Sinju
Piyush Bhati
Ronit Kaur
Abhishek Kumar
3
1. BASIC CONCEPTS
MYSTERY SHOPPING
Definition 1 : Mystery shopping, a form of participant observation, uses researchers to act as customers
or potential customers to monitor the processes and procedures used in the delivery of a service.
Definition 2 : Mystery consumer or secret shopper , is a tool used externally by market research
companies, watchdog organizations, or internally by companies themselves to measure quality of
service, or compliance with regulation, or to gather specific information about products and services.
The mystery consumer's specific identity and purpose is generally not known by the establishment being
evaluated. Mystery shoppers perform specific tasks such as purchasing a product, asking questions,
registering complaints or behaving in a certain way, and then provide detailed reports or feedback about
their experiences.
PARTICIPANT OBSERVATION AND MYSTERY SHOPPING:
The use of participant observation, where the researcher interacts with the subject or subjects being
observed. There is often a discrepancy between real and reported behaviour. Occasionally statements
are made in interviews which are not in accordance with the factual behaviour of the interviewed
persons.
MYSTERY SHOPPING IN MEASUREMENTS OF SERVICE DELIVERY:
Often facts are brought to light by means of natural settings only. The interviewee is not conscious of
them and they are therefore not easy to get at by questioning.
The verbal capabilities of the interviewed person can limit the quality and quantity of information
gathered.
In terms of ethics, observing people without their knowledge may violate their rights to privacy and
freedom from exploitation .However, services are often performed in public settings where their
delivery can often be observed by members of the public other than the specific recipient of the service.
Mystery shopping is a clear example of concealed participant observation in a public setting. It is in a
structured and systematic format.
Whereas mystery shopping uses a structured approach of checklists and codes to gather and measure
specific information about service performance in everyday conditions. service quality standards as
having three objectives:
• Establishing a target towards which all employees can direct their efforts
• Communicating the expectations of management and customers to employees
4
• Creating a valuable management tool to assist with recruitment profiles, job descriptions and
appointing decisions
However, to be effective a service quality loop is required, with a continuous linking of standards, staff
performance, training and reward mechanisms. As mystery shopping has the potential to measure
service performance against pre-set quality standards it should play an integral part in this loop by
providing the measurement of performance
This paper therefore reports on an exploratory programme of research which was aimed at considering:
the reasons for using mystery shopping as a measure of service performance; the procedures used to
ensure the objectivity and reliability of mystery shopping research; and the use made of mystery
shopping data and the manner in which this data is communicated to service personnel.
2. METHODOLOGY:
2.1: Objectives of the study:
Primary objective:
“Conduct Store Mystery Shopping Exercise and take Interview and Feedback from the Store
Manager in 5 different stores”
Secondary Objectives:
In line with the previous description of the research, the objectives that have been defined for the
research project are the following:
a) Using mystery shopping as a measure of service performance in stores.
b) Using procedures to ensure the objectivity and reliability of mystery shopping research.
c) Use made of mystery shopping data and communicated this data to store manager.
2.2 Research Type:
Exploratory research is research conducted for a problem that has not been clearly defined. It
often occurs before we know enough to make conceptual distinctions or posit an explanatory
relationship. Exploratory research helps determine the best research design, data
collection method and selection of subjects. It should draw definitive conclusions only with
extreme caution. Given its fundamental nature, exploratory research often concludes that a
perceived problem does not actually exist.
2.3: Sources of data
PRIMARY DATA:
Interview and Feedback from the Store Manager
SECONDARY DATA:
It refers to the statistical material which is not originated by the investigator himself but obtained
from someone else's records, or when Primary data is utilised for any other purpose at some
subsequent enquiry it is termed as Secondary data. This type of data is generally taken from
newspapers, magazines, bulletins, reports, journals etc. According to M.M. Blair, "Secondary
5
data are those already in existence for some other purpose than the answering of the question in
hand.
Sources of Secondary data were:-
• Research Paper: “The use of mystery shopping in the measurement of service delivery.”
Alan M. Wilson
• Reference books:
1. Retail Marketing by David Gilbert
2. Retail Management: A Strategic Approach by Barry Berman and Joel R Evans
3. Retail Marketing by David Gilbert
4. Retail Management: A Strategic Approach by Barry Berman and Joel R Evans
5. The Art of Retailing by A J Lamba
2.4: Selection of Sample:
Purposive or Non-probability sampling:
Meaning – Non-probability sampling is that sampling procedure which does
not afford any basis for estimating the probability that each item in the population has of being
included in the sample. In this sampling the organisers of the inquiry purposively choose the
particular units of the universe for constituting a sample on the basis that the small mass that they
so select out of a huge one will be typical or representative of the whole.
Advantages –
• A purposive sample may not vary widely from average.
• It is economical and useful if the sample size is small.
Disadvantages-
• There is much scope for personal bias.
• Degree of accuracy of the estimates is not known.
• As the sample size increases, the estimates become unreliable due to accumulation of
bias.
5 Retail Stores in the Jaipur City were chosen on the basis of Purposive Sampling.
2.5 TOOLS FOR DATA ANALYSIS:
1. Because of limited extent of published research on mystery shopping, meant that an evolutionary
interview structure was required. A qualitative research approach was therefore adopted, offering
explanation and meaning rather than simply measurement.
2. Respondents were allowed to talk about their views and opinions rather than simply answering a
number of pre- set questions.
3. A topic list was designed based on the findings of the literature review and the objectives of the study.
It was ordered in a manner to maintain the flow of the interview without leading the responses given by
the interviewee. A tape recorder was also used to maintain continuum.
6
4. The emphasis is on the service experience as it unfolds, looking at which activities and procedures do
or do not happen rather than gathering opinions about the service experience.
Mystery shopping aims to collect facts rather than perceptions. These facts can relate to basic enquiries,
purchases and transactions covering topics such as:
1. How many rings before the phone was answered?
2. How long was the queue?
3. What form of greeting was used? Etc.
7
STORE 1: MYSTERY SHOPPER – SAUMYA POONIA
STORE MYSTERY SHOPPING OBSERVATION
Date: September 29, 2014
Day of the Week: Monday
Time of Day: 3pm
Name of Store: “Graha Sangraha”
Address:
Total Store Information:
Number of cars in the parking lot: 05
How many times were there 3 or more customers in a checkout lane: 10 times during duration of
our visit i.e. 2 hours.
Average items being purchased: During Duration of our visit i.e. 1 hour, out of 55 cutomers,
30 had their carts ½ or more full and 25 had baskets carts less than ½ full.
Using baskets carts less than ½ full: 45.45%
Carts ½ or more full: 54.54%
How long did you wait in line to check out?
3 Minutes
How many items did your purchase?
10 items
General Shopping Information:
1) Were you greeted when arriving at the store? Yes /No
2) Were shopping baskets/carts available and/or offered? Available/Offered
8
3) Were salespeople visible on the store floor? Did anyone ask if they could assist you in finding
an item? When asking for assistance, did the salesperson take you to the item or point to the
item?
Yes, at least 1 salesperson was available at each store counter . Yes, They frequently asked
customers if they could assist them in finding items they are looking for. Yes, When asked for
assistance to purchase a low calorie snack within price range of Rs.45-50, the salesperson took
me to the food items aisle and pointed towards the Kellogg’s Frosted Flakes*which is a source
of 7 essential nutrients and no artificial flavours or colours. The sweet, crunchy flakes with
Serving Size3/4 cup, Calories 170,Total Fat 0, Sodium 130mg , Sugar12 g and Dietary Fiber0 g.
4) Were salespeople using product knowledge when speaking with their guests?
Yes, The assigned person for the food items aisle told me that the Kellogg’s Frosted
Flakes*which is a source of 7 essential nutrients and has no artificial flavours or colours. The
sweet, crunchy flakes with Serving Size3/4 cup, Calories 170,Total Fat 0, Sodium 130mg ,
Sugar12 g and Dietary Fiber0 g. Its major ingredients are Flaked milled corn, sugar, malt (corn
flour, malted barley), salt, colour, bht, Vitamins and minerals: iron, niacinamide, thiamine
hydrochloride, cholecalciferol (vitamin d3), d-calcium pantothenate, pyridoxine hydrochloride,
folic acid and it is available in sizes of 300g, 680g, 445 g, 975 g, 55 g, 4 - 55 g.
5) Describe the store layout - e.g., overall feel of the store, promotions, signs, pleasing to shop at,
etc... Were aisles clear?
Grid Layout: Counters and Fixtures are placed in long rows or “runs” usually at right angles,
throughout the store. Advantages of this layout are that it is easy to locate merchandise, it is cost
efficient, it is easily accessible for customers. Disadvantages of this format is that there is limited
browsing and limited creativity in decoration. An aisle is a space for walking with rows on both
sides or with rows on one side and a wall on the other. The average of an aisle is 5- 6 feet.
6) Was the store clean and neat? Yes, there were signboards like Beware of Slippery Floor. High
Cleanliness norms were adhered to by the store manager.
7) Did employees appear friendly? Were they smiling? Yes, employees were friendly, jovial,
welcoming and open to assist customers in augmenting their shopping experience.
8) Were prices displayed prominently in the store?
The price of products on sale in store was attached to the items themselves. Alternatively prices
were displayed on a label on the edge of the shelf. Generally, shelf labels are used to display
prices in supermarkets since barcodes have becomes more popular. Prices marked on goods or
prices displayed or quoted at the retail level and all charges for services displayed or quoted were
tax-inclusive (e.g. VAT) except where it is intended solely for a business customer.
9
9) Were sale items/store circulars displayed and/or available? Yes, Sale items were displayed as
they are a great way to promote items in the Store. Sales are generally seasonal, for specific
holidays, for specific categories, or just to clear out inventory.
Store circulars are weekly ads that the stores places out selected items as their "loss leaders".
These items are sold at a lower price than what you would normally see on the shelves in their
hopes of bringing in more consumers to purchase more products while they're shopping.
Store Circular such as "One Day Sale!" : You must go on that specific day to purchase it for that
price."Over ____ in Savings!" = This is the total amount of savings throughout the entire ad, if
you were to purchase every single item on the ad. Buy any 10 items/$25.00 were on display in
the store.
10) Check 3 sale items (and list) to see if the product is still available. Are products available?
Kid’s Apparell:
Female Footwear:
Electronic item: Mobile Charges were on sale
11) Is the store easy to shop? Yes, It is easy to navigate through the aisles as they are well spaced
as well as signages are fixed at correct place.
12) Is there a large variety of products?
Yes, This store is a general merchandiser: These retailers carry a wide range of product
categories (i.e., broad width) though the number of different items within a particular product
line is generally limited (i.e., shallow depth). Product Categories available in the store were fast
moving consumer goods, footwear, apparel, electronic goods etc.
13) Examine two different categories of products in the store (e.g., Grocery, Vegetables,
Clothing, and Electronics etc.) Is there a lot of choice within this category? Are there name
brands and store brands? How are these displayed? Is product available on the shelf?
Ans. The two categories major categories of the store are:
1. Fast Moving Consumer Goods: Various products sold in this category are soft
drinks, toiletries, over-the-counter drugs, toys, processed foods and many other
consumables. The number of different items within a particular product line is generally
limited (i.e., shallow depth) i.e. each product category has shallow depth.E.g. Name
Brands include Pepsi, Coca Cola, Kellogs,Lux, Vivel,Sunsilk, Fritolay, ITC etc.
2. Electronic Goods: The store mainly house consumer electronics .These are those
electronics which are electronic equipment intended for everyday use, most often
in entertainment, communications and office productivity.Main consumer electronics
products include radio receivers, television sets, MP3 players, video recorders, DVD
10
players, digital cameras, camcorders, personal computers, video game
consoles, telephones and mobile phones. E.g. Amkette, Beetel, Bharat
Electronics,BPL,Godrej,HCL,iball,Ifb,Intex,Lava,Micromax,Myzornis,Moser
Baer,Notion Ink,Onida,Usha,Voltas,Videocon,Wipro etc.
There are plenty of name brands but no store brands. Store brands are a line of products
strategically branded by a retailer within a single brand Identity.
14) Does the product look fresh and of high quality? Are there noticeable problems with any
products?
Ans. Yes, the products look fresh and are of high quality.
Noticeable Problems with product:
-Few Products that exceeded their expiry date were displayed in the stores and packaging of few
products was damaged.
15) Check the restrooms - are they clean, clearly marked, are paper products and soap available?
No, the Restrooms were not clean. They were located at the back of the store which made it very
difficult to locate them. There were no toilet paper and napkins available in the restrooms.
16) Were samples offered anywhere in the store? If yes, describe.
Product sampling puts your product in the hands and minds of potential customers. Sampling
provides a way for customers to try out your product without the risk of deviating from
something else that they already know. This is often a vital method of ensuring products make it
onto the shelves of retailers and that they stay there when faced with heavy competition.At the
cosmetic counter, customers were being offered free samples of lipsticks as a promotional
campaign of a newly launched brand called Clamay.
17) If you used a credit card or check, did the cashier use your name? If you did not use either,
did you notice what happened to another customer if they did?
No, I did not use a credit card or check but I saw a customer using credit card and the cashier
asked for his name and signature on the receipt.
18) Provide comments on the quality of products/services.
Quality is defined as the collection of features and characteristics of a product that contribute to
its ability to meet given requirement. There are three views for describing the overall quality of
a product.
First is the view of the manufacturer: Who is primarily concerned with the design,
engineering, and manufacturing processes involved in fabricating the product. Quality is
measured by the degree of conformance to predetermined specifications and standards, and
deviations from these standards can lead to poor quality and low reliability. Efforts for quality
improvement are aimed at eliminating defects (components and subsystems that are out of
11
conformance), the need for scrap and rework, and hence overall reductions in production costs.
Yes, according to manufacturer product are of high quality.
Second is the view of the consumer or user: To consumers, a high quality product is one that
well satisfies their preferences and expectations. This consideration can include a number of
characteristics ,some of which contribute little or nothing to the functionality of the product but
are significant in providing customer satisfaction. Yes, Consumer find product to be robust and
sturdy.
Third View Relating to Quality: is to consider the product itself as a system and to incorporate
those characteristics that pertain directly to the operation and functionality of the product. Yes,
products sold in the shop are of substandard-good quality.
19) Provide comments on the overall service - especially the checkout.
1. This retail stores is designed to enhance the customer experience and to increase customer
service.
2. It provides customer support with the assistance of multiple salespeople present in the store
level who interact with the customer in their regional languages.
3. They have a dedicated team of employees who help customers in social media channels,
including Facebook and Twitter.
4. The retail store also offers support and a wide range of communications services to customers
with vision, hearing, mobility and speed limitations.
5. They conduct millions of customer interviews each year, including surveys of former and
returning customers.
6. This particular retail store had a EFTPOS (Electronic Funds Transfer at point of sale terminal
at the checkout center) It is an electronic payment system involving electronic funds transfers
based on the use of payment cards, such as debit or credit cards and manual cash registers for
payment in cash.
20) Was there anything noticeably wrong during your visit?
Yes, In the FMCG shelf,most frequently sold items were kept at the bottom of the shelf plus
there was no gatekeeper/assistant boy to help customers keep their shopping bags in their cars.
12
INTERVIEW/ FEEDBACK FROM THE STORE MANAGER
Manager Name: Mr. Jagmohan Singh
Designation: Store Manager
Qualification: B.Com , MBA in Operations from Jodhpur University
Years of Experience: 5
No. of Staff Supervised: 10
Hierarchy in Store:
Job Description:
1. Completes store operational requirements by scheduling and assigning employees;
following up on work results.
2. Maintains store staff by recruiting, selecting, orienting, and training employees.
3. Maintains store staff job results by coaching, counseling, and disciplining employees;
planning, monitoring, and appraising job results.
4. Achieves financial objectives by preparing an annual budget; scheduling expenditures;
analyzing variances; initiating corrective actions.
OWNER OF THE STOR(1)
HEAD STORE
MANAGER
ASSISTANCE STORE
MANAGER(1)
ASSISTANCE STORE
MANAGER(1)
COUNTER
SALESPERSON
COUNTER
SALESPERSON
COUNTER
SALESPERSON
COUNTER
SALESPERSON
ACCOUNT
MANAGER(1)
13
5. Identifies current and future customer requirements by establishing rapport with potential
and actual customers and other persons in a position to understand service requirements.
6. Ensures availability of merchandise and services by approving contracts; maintaining
inventories.
7. Formulates pricing policies by reviewing merchandising activities; determining
additional needed sales promotion; authorizing clearance sales; studying trends.
Salary Bracket (approximate): Rs. 20,000-Rs.25,000 per month i.e. Rs. 2,40,000 per annum
and Rs.3,00,000 per annum.
Detailed feedback on each observation made in mystery shopping:
First, Mystery Shopping is a serious business, and mystery Shopper should treat it as such.
Second, Mystery Shopping should be thoroughly trained and drilled on the correct way to
observe, record, and interpret the observations.
Third, multiple observations should be gathered on different days and times to establish patterns
of behavior.
Fourth, while clients should be provided with objective observational data and analysis, the
client ultimately decides how to use that data (e.g., to reward or reprimand employees or to
modify their product/service mix in response to competitive offerings).
Fifth, clients should be discouraged from using the research results in isolation. Rather, in the
case of evaluating customer service and employee performance, the secret shopping observations
should be used in combination with other personal and mechanical observations, customer
satisfaction survey, peer evaluations, and other performance measures.
14
REFERENCES
1. Gilbert, David.(2003) Retail Marketing Management .New Delhi: Pearson Education
Limited
2. Berman,Barry; Evans,Joel (2004)R. Retail Management: A Strategic Approach by
Barry Berman and Joel R Evans. New Delhi: Pearson Education Limited
3. Lamba, A. J.(2003) The Art of Retailing. New Delhi: Tata MacGraw Hill
4. Wilson, M. Alan (2002),“The Use of Mystery Shopping in the Measurement of Service
Delivery”.
5. Berry, L.L., A. Parasuraman and V. Zeithaml, 1988, “The Service -Quality Puzzle”,
Business Horizons, September/October, pp.35-43.
15
16
17
18
doc_799686013.docx
“TAPMI SCHOOL OF BUSINESS”
MANIPAL UNIVERSITY JAIPUR-303007, RAJASTHAN, INDIA,APRIL 2014
“Store Mystery Shopping Exercise”
“Interview and Feedback from Store Manager in 5 Stores”
INDUSTRY PROJECT
Submitted in partial fulfillment of the requirements for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
PREPARED BY: UNDER GUIDANCE OF:
Saumya poonia Dr. Davis Lazarus
M.P.Sinju
Piyush Bhati
Ronit Kaur
Abhishek Kumar
2
CANDIDATE’S DECLARATION
I hereby certify that Industry project entitled “MYSTERY SHOPPING” in partial fulfillment of the
requirements for the award of the Degree of Master of Business Administration submitted to the
Department of Management, Manipal University Jaipur, is an authentic record of our own work carried
out during the period from 18/09/2014 to 1/10/2014 under the supervision of Mr. Davis Lazarus,
Associate Professor, Manipal University Jaipur.
I have not submitted the matter presented in this dissertation for the award of any other degree of this or
any other Institute.
Date: 1/10/2014 Signature
Place: Jaipur M.P.Sinju
Piyush Bhati
Ronit Kaur
Abhishek Kumar
3
1. BASIC CONCEPTS
MYSTERY SHOPPING
Definition 1 : Mystery shopping, a form of participant observation, uses researchers to act as customers
or potential customers to monitor the processes and procedures used in the delivery of a service.
Definition 2 : Mystery consumer or secret shopper , is a tool used externally by market research
companies, watchdog organizations, or internally by companies themselves to measure quality of
service, or compliance with regulation, or to gather specific information about products and services.
The mystery consumer's specific identity and purpose is generally not known by the establishment being
evaluated. Mystery shoppers perform specific tasks such as purchasing a product, asking questions,
registering complaints or behaving in a certain way, and then provide detailed reports or feedback about
their experiences.
PARTICIPANT OBSERVATION AND MYSTERY SHOPPING:
The use of participant observation, where the researcher interacts with the subject or subjects being
observed. There is often a discrepancy between real and reported behaviour. Occasionally statements
are made in interviews which are not in accordance with the factual behaviour of the interviewed
persons.
MYSTERY SHOPPING IN MEASUREMENTS OF SERVICE DELIVERY:
Often facts are brought to light by means of natural settings only. The interviewee is not conscious of
them and they are therefore not easy to get at by questioning.
The verbal capabilities of the interviewed person can limit the quality and quantity of information
gathered.
In terms of ethics, observing people without their knowledge may violate their rights to privacy and
freedom from exploitation .However, services are often performed in public settings where their
delivery can often be observed by members of the public other than the specific recipient of the service.
Mystery shopping is a clear example of concealed participant observation in a public setting. It is in a
structured and systematic format.
Whereas mystery shopping uses a structured approach of checklists and codes to gather and measure
specific information about service performance in everyday conditions. service quality standards as
having three objectives:
• Establishing a target towards which all employees can direct their efforts
• Communicating the expectations of management and customers to employees
4
• Creating a valuable management tool to assist with recruitment profiles, job descriptions and
appointing decisions
However, to be effective a service quality loop is required, with a continuous linking of standards, staff
performance, training and reward mechanisms. As mystery shopping has the potential to measure
service performance against pre-set quality standards it should play an integral part in this loop by
providing the measurement of performance
This paper therefore reports on an exploratory programme of research which was aimed at considering:
the reasons for using mystery shopping as a measure of service performance; the procedures used to
ensure the objectivity and reliability of mystery shopping research; and the use made of mystery
shopping data and the manner in which this data is communicated to service personnel.
2. METHODOLOGY:
2.1: Objectives of the study:
Primary objective:
“Conduct Store Mystery Shopping Exercise and take Interview and Feedback from the Store
Manager in 5 different stores”
Secondary Objectives:
In line with the previous description of the research, the objectives that have been defined for the
research project are the following:
a) Using mystery shopping as a measure of service performance in stores.
b) Using procedures to ensure the objectivity and reliability of mystery shopping research.
c) Use made of mystery shopping data and communicated this data to store manager.
2.2 Research Type:
Exploratory research is research conducted for a problem that has not been clearly defined. It
often occurs before we know enough to make conceptual distinctions or posit an explanatory
relationship. Exploratory research helps determine the best research design, data
collection method and selection of subjects. It should draw definitive conclusions only with
extreme caution. Given its fundamental nature, exploratory research often concludes that a
perceived problem does not actually exist.
2.3: Sources of data
PRIMARY DATA:
Interview and Feedback from the Store Manager
SECONDARY DATA:
It refers to the statistical material which is not originated by the investigator himself but obtained
from someone else's records, or when Primary data is utilised for any other purpose at some
subsequent enquiry it is termed as Secondary data. This type of data is generally taken from
newspapers, magazines, bulletins, reports, journals etc. According to M.M. Blair, "Secondary
5
data are those already in existence for some other purpose than the answering of the question in
hand.
Sources of Secondary data were:-
• Research Paper: “The use of mystery shopping in the measurement of service delivery.”
Alan M. Wilson
• Reference books:
1. Retail Marketing by David Gilbert
2. Retail Management: A Strategic Approach by Barry Berman and Joel R Evans
3. Retail Marketing by David Gilbert
4. Retail Management: A Strategic Approach by Barry Berman and Joel R Evans
5. The Art of Retailing by A J Lamba
2.4: Selection of Sample:
Purposive or Non-probability sampling:
Meaning – Non-probability sampling is that sampling procedure which does
not afford any basis for estimating the probability that each item in the population has of being
included in the sample. In this sampling the organisers of the inquiry purposively choose the
particular units of the universe for constituting a sample on the basis that the small mass that they
so select out of a huge one will be typical or representative of the whole.
Advantages –
• A purposive sample may not vary widely from average.
• It is economical and useful if the sample size is small.
Disadvantages-
• There is much scope for personal bias.
• Degree of accuracy of the estimates is not known.
• As the sample size increases, the estimates become unreliable due to accumulation of
bias.
5 Retail Stores in the Jaipur City were chosen on the basis of Purposive Sampling.
2.5 TOOLS FOR DATA ANALYSIS:
1. Because of limited extent of published research on mystery shopping, meant that an evolutionary
interview structure was required. A qualitative research approach was therefore adopted, offering
explanation and meaning rather than simply measurement.
2. Respondents were allowed to talk about their views and opinions rather than simply answering a
number of pre- set questions.
3. A topic list was designed based on the findings of the literature review and the objectives of the study.
It was ordered in a manner to maintain the flow of the interview without leading the responses given by
the interviewee. A tape recorder was also used to maintain continuum.
6
4. The emphasis is on the service experience as it unfolds, looking at which activities and procedures do
or do not happen rather than gathering opinions about the service experience.
Mystery shopping aims to collect facts rather than perceptions. These facts can relate to basic enquiries,
purchases and transactions covering topics such as:
1. How many rings before the phone was answered?
2. How long was the queue?
3. What form of greeting was used? Etc.
7
STORE 1: MYSTERY SHOPPER – SAUMYA POONIA
STORE MYSTERY SHOPPING OBSERVATION
Date: September 29, 2014
Day of the Week: Monday
Time of Day: 3pm
Name of Store: “Graha Sangraha”
Address:
Total Store Information:
Number of cars in the parking lot: 05
How many times were there 3 or more customers in a checkout lane: 10 times during duration of
our visit i.e. 2 hours.
Average items being purchased: During Duration of our visit i.e. 1 hour, out of 55 cutomers,
30 had their carts ½ or more full and 25 had baskets carts less than ½ full.
Using baskets carts less than ½ full: 45.45%
Carts ½ or more full: 54.54%
How long did you wait in line to check out?
3 Minutes
How many items did your purchase?
10 items
General Shopping Information:
1) Were you greeted when arriving at the store? Yes /No
2) Were shopping baskets/carts available and/or offered? Available/Offered
8
3) Were salespeople visible on the store floor? Did anyone ask if they could assist you in finding
an item? When asking for assistance, did the salesperson take you to the item or point to the
item?
Yes, at least 1 salesperson was available at each store counter . Yes, They frequently asked
customers if they could assist them in finding items they are looking for. Yes, When asked for
assistance to purchase a low calorie snack within price range of Rs.45-50, the salesperson took
me to the food items aisle and pointed towards the Kellogg’s Frosted Flakes*which is a source
of 7 essential nutrients and no artificial flavours or colours. The sweet, crunchy flakes with
Serving Size3/4 cup, Calories 170,Total Fat 0, Sodium 130mg , Sugar12 g and Dietary Fiber0 g.
4) Were salespeople using product knowledge when speaking with their guests?
Yes, The assigned person for the food items aisle told me that the Kellogg’s Frosted
Flakes*which is a source of 7 essential nutrients and has no artificial flavours or colours. The
sweet, crunchy flakes with Serving Size3/4 cup, Calories 170,Total Fat 0, Sodium 130mg ,
Sugar12 g and Dietary Fiber0 g. Its major ingredients are Flaked milled corn, sugar, malt (corn
flour, malted barley), salt, colour, bht, Vitamins and minerals: iron, niacinamide, thiamine
hydrochloride, cholecalciferol (vitamin d3), d-calcium pantothenate, pyridoxine hydrochloride,
folic acid and it is available in sizes of 300g, 680g, 445 g, 975 g, 55 g, 4 - 55 g.
5) Describe the store layout - e.g., overall feel of the store, promotions, signs, pleasing to shop at,
etc... Were aisles clear?
Grid Layout: Counters and Fixtures are placed in long rows or “runs” usually at right angles,
throughout the store. Advantages of this layout are that it is easy to locate merchandise, it is cost
efficient, it is easily accessible for customers. Disadvantages of this format is that there is limited
browsing and limited creativity in decoration. An aisle is a space for walking with rows on both
sides or with rows on one side and a wall on the other. The average of an aisle is 5- 6 feet.
6) Was the store clean and neat? Yes, there were signboards like Beware of Slippery Floor. High
Cleanliness norms were adhered to by the store manager.
7) Did employees appear friendly? Were they smiling? Yes, employees were friendly, jovial,
welcoming and open to assist customers in augmenting their shopping experience.
8) Were prices displayed prominently in the store?
The price of products on sale in store was attached to the items themselves. Alternatively prices
were displayed on a label on the edge of the shelf. Generally, shelf labels are used to display
prices in supermarkets since barcodes have becomes more popular. Prices marked on goods or
prices displayed or quoted at the retail level and all charges for services displayed or quoted were
tax-inclusive (e.g. VAT) except where it is intended solely for a business customer.
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9) Were sale items/store circulars displayed and/or available? Yes, Sale items were displayed as
they are a great way to promote items in the Store. Sales are generally seasonal, for specific
holidays, for specific categories, or just to clear out inventory.
Store circulars are weekly ads that the stores places out selected items as their "loss leaders".
These items are sold at a lower price than what you would normally see on the shelves in their
hopes of bringing in more consumers to purchase more products while they're shopping.
Store Circular such as "One Day Sale!" : You must go on that specific day to purchase it for that
price."Over ____ in Savings!" = This is the total amount of savings throughout the entire ad, if
you were to purchase every single item on the ad. Buy any 10 items/$25.00 were on display in
the store.
10) Check 3 sale items (and list) to see if the product is still available. Are products available?
Kid’s Apparell:
Female Footwear:
Electronic item: Mobile Charges were on sale
11) Is the store easy to shop? Yes, It is easy to navigate through the aisles as they are well spaced
as well as signages are fixed at correct place.
12) Is there a large variety of products?
Yes, This store is a general merchandiser: These retailers carry a wide range of product
categories (i.e., broad width) though the number of different items within a particular product
line is generally limited (i.e., shallow depth). Product Categories available in the store were fast
moving consumer goods, footwear, apparel, electronic goods etc.
13) Examine two different categories of products in the store (e.g., Grocery, Vegetables,
Clothing, and Electronics etc.) Is there a lot of choice within this category? Are there name
brands and store brands? How are these displayed? Is product available on the shelf?
Ans. The two categories major categories of the store are:
1. Fast Moving Consumer Goods: Various products sold in this category are soft
drinks, toiletries, over-the-counter drugs, toys, processed foods and many other
consumables. The number of different items within a particular product line is generally
limited (i.e., shallow depth) i.e. each product category has shallow depth.E.g. Name
Brands include Pepsi, Coca Cola, Kellogs,Lux, Vivel,Sunsilk, Fritolay, ITC etc.
2. Electronic Goods: The store mainly house consumer electronics .These are those
electronics which are electronic equipment intended for everyday use, most often
in entertainment, communications and office productivity.Main consumer electronics
products include radio receivers, television sets, MP3 players, video recorders, DVD
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players, digital cameras, camcorders, personal computers, video game
consoles, telephones and mobile phones. E.g. Amkette, Beetel, Bharat
Electronics,BPL,Godrej,HCL,iball,Ifb,Intex,Lava,Micromax,Myzornis,Moser
Baer,Notion Ink,Onida,Usha,Voltas,Videocon,Wipro etc.
There are plenty of name brands but no store brands. Store brands are a line of products
strategically branded by a retailer within a single brand Identity.
14) Does the product look fresh and of high quality? Are there noticeable problems with any
products?
Ans. Yes, the products look fresh and are of high quality.
Noticeable Problems with product:
-Few Products that exceeded their expiry date were displayed in the stores and packaging of few
products was damaged.
15) Check the restrooms - are they clean, clearly marked, are paper products and soap available?
No, the Restrooms were not clean. They were located at the back of the store which made it very
difficult to locate them. There were no toilet paper and napkins available in the restrooms.
16) Were samples offered anywhere in the store? If yes, describe.
Product sampling puts your product in the hands and minds of potential customers. Sampling
provides a way for customers to try out your product without the risk of deviating from
something else that they already know. This is often a vital method of ensuring products make it
onto the shelves of retailers and that they stay there when faced with heavy competition.At the
cosmetic counter, customers were being offered free samples of lipsticks as a promotional
campaign of a newly launched brand called Clamay.
17) If you used a credit card or check, did the cashier use your name? If you did not use either,
did you notice what happened to another customer if they did?
No, I did not use a credit card or check but I saw a customer using credit card and the cashier
asked for his name and signature on the receipt.
18) Provide comments on the quality of products/services.
Quality is defined as the collection of features and characteristics of a product that contribute to
its ability to meet given requirement. There are three views for describing the overall quality of
a product.
First is the view of the manufacturer: Who is primarily concerned with the design,
engineering, and manufacturing processes involved in fabricating the product. Quality is
measured by the degree of conformance to predetermined specifications and standards, and
deviations from these standards can lead to poor quality and low reliability. Efforts for quality
improvement are aimed at eliminating defects (components and subsystems that are out of
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conformance), the need for scrap and rework, and hence overall reductions in production costs.
Yes, according to manufacturer product are of high quality.
Second is the view of the consumer or user: To consumers, a high quality product is one that
well satisfies their preferences and expectations. This consideration can include a number of
characteristics ,some of which contribute little or nothing to the functionality of the product but
are significant in providing customer satisfaction. Yes, Consumer find product to be robust and
sturdy.
Third View Relating to Quality: is to consider the product itself as a system and to incorporate
those characteristics that pertain directly to the operation and functionality of the product. Yes,
products sold in the shop are of substandard-good quality.
19) Provide comments on the overall service - especially the checkout.
1. This retail stores is designed to enhance the customer experience and to increase customer
service.
2. It provides customer support with the assistance of multiple salespeople present in the store
level who interact with the customer in their regional languages.
3. They have a dedicated team of employees who help customers in social media channels,
including Facebook and Twitter.
4. The retail store also offers support and a wide range of communications services to customers
with vision, hearing, mobility and speed limitations.
5. They conduct millions of customer interviews each year, including surveys of former and
returning customers.
6. This particular retail store had a EFTPOS (Electronic Funds Transfer at point of sale terminal
at the checkout center) It is an electronic payment system involving electronic funds transfers
based on the use of payment cards, such as debit or credit cards and manual cash registers for
payment in cash.
20) Was there anything noticeably wrong during your visit?
Yes, In the FMCG shelf,most frequently sold items were kept at the bottom of the shelf plus
there was no gatekeeper/assistant boy to help customers keep their shopping bags in their cars.
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INTERVIEW/ FEEDBACK FROM THE STORE MANAGER
Manager Name: Mr. Jagmohan Singh
Designation: Store Manager
Qualification: B.Com , MBA in Operations from Jodhpur University
Years of Experience: 5
No. of Staff Supervised: 10
Hierarchy in Store:
Job Description:
1. Completes store operational requirements by scheduling and assigning employees;
following up on work results.
2. Maintains store staff by recruiting, selecting, orienting, and training employees.
3. Maintains store staff job results by coaching, counseling, and disciplining employees;
planning, monitoring, and appraising job results.
4. Achieves financial objectives by preparing an annual budget; scheduling expenditures;
analyzing variances; initiating corrective actions.
OWNER OF THE STOR(1)
HEAD STORE
MANAGER
ASSISTANCE STORE
MANAGER(1)
ASSISTANCE STORE
MANAGER(1)
COUNTER
SALESPERSON
COUNTER
SALESPERSON
COUNTER
SALESPERSON
COUNTER
SALESPERSON
ACCOUNT
MANAGER(1)
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5. Identifies current and future customer requirements by establishing rapport with potential
and actual customers and other persons in a position to understand service requirements.
6. Ensures availability of merchandise and services by approving contracts; maintaining
inventories.
7. Formulates pricing policies by reviewing merchandising activities; determining
additional needed sales promotion; authorizing clearance sales; studying trends.
Salary Bracket (approximate): Rs. 20,000-Rs.25,000 per month i.e. Rs. 2,40,000 per annum
and Rs.3,00,000 per annum.
Detailed feedback on each observation made in mystery shopping:
First, Mystery Shopping is a serious business, and mystery Shopper should treat it as such.
Second, Mystery Shopping should be thoroughly trained and drilled on the correct way to
observe, record, and interpret the observations.
Third, multiple observations should be gathered on different days and times to establish patterns
of behavior.
Fourth, while clients should be provided with objective observational data and analysis, the
client ultimately decides how to use that data (e.g., to reward or reprimand employees or to
modify their product/service mix in response to competitive offerings).
Fifth, clients should be discouraged from using the research results in isolation. Rather, in the
case of evaluating customer service and employee performance, the secret shopping observations
should be used in combination with other personal and mechanical observations, customer
satisfaction survey, peer evaluations, and other performance measures.
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REFERENCES
1. Gilbert, David.(2003) Retail Marketing Management .New Delhi: Pearson Education
Limited
2. Berman,Barry; Evans,Joel (2004)R. Retail Management: A Strategic Approach by
Barry Berman and Joel R Evans. New Delhi: Pearson Education Limited
3. Lamba, A. J.(2003) The Art of Retailing. New Delhi: Tata MacGraw Hill
4. Wilson, M. Alan (2002),“The Use of Mystery Shopping in the Measurement of Service
Delivery”.
5. Berry, L.L., A. Parasuraman and V. Zeithaml, 1988, “The Service -Quality Puzzle”,
Business Horizons, September/October, pp.35-43.
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