Thesis Akanksha

FACTORS AFFECTING CUSTOMER SATISFACTION IN
BHATBHATENI SUPERMARKET KATHMANDU VALLEY
A Dissertation submitted to the Office of the Dean, Faculty of

Management in partial fulfillment of the requirements of the Master’s
Degree.
By
Akanksha Airee
Roll No: 16101 / 19
Registration No: 7-2-177-1-2014
Triton International College
June 2023
Certification of
Authorship
I hereby corroborate that I have researched and submitted the final draft of the
dissertation entitled “Factors Affecting Customer Satisfaction in Bhatbhateni
Supermarket Kathmandu Valley” The work of this dissertation has not been submitted
previously for conferral of any degree nor has it been proposed and presented as part of
requirements for any other academic purposes. The assistance and cooperation that I have
received during this research work have been acknowledged. In addition, I declare that all
information sources and literature used are cited in the reference section of the
dissertation.
Akanksha Airee
Signature
Date of submission
i
Report of Research
Ms. Akanksha Airee has defended researched proposal entitled Factors Affecting
Customer Satisfaction in Bhatbhateni Supermarket Kathmandu Valley successfully.
The research committee has registered the dissertation for further progress. It is
recommended to carry out the work as per suggestions and guidance of supervisor Mr.
Deep Narayan Pathak and submit the thesis for evaluation and viva voce examination.
Mr. Deep Narayan Pathak

Dissertation Proposal Defended
Dissertation Supervisor Date
Signature………........
Prof. Dr.
(Head of Research Department) Dissertation Submitted Date
Signature……………………… ………………………………
Prof. Dr.
Dissertation Viva Voce Date
Campus Chief
Signature……………………… ………………………………..
ii
Approval
We have examined the dissertation entitled Factors Affecting Customer Satisfaction in

Bhatbhateni Supermarket Kathmandu Valley presented by Akanksha Airee for the
degree of Master of Business Studies, we hereby certify that the dissertation is
acceptable for the award of the degree.
Mr. Deep Narayan Pathak
Dissertation Supervisor
Signature………........
Internal Examiner
Signature
External Examiner
Signature
Signature………………………
Prof. Dr.
Head of Research Department
Date:
iii
Acknowledgmen
The study titled " Factors Affecting Customer Satisfaction in Bhatbhateni

Supermarket Kathmandu Valley " was undertaken as part of the requirements for the
completion of the Masters of Business Studies degree at Tribhuvan University. Like any
project, the success of this study can be attributed to the contributions of several
remarkable individuals who have provided valuable advice and assistance. I would like to
express my sincere appreciation to all those who have played a significant role in
ensuring the success of this study.
First and foremost, I would like to extend my heartfelt gratitude to Mr. Deep Narayan
Pathak for his invaluable supervision and guidance throughout the completion of this
study. I am truly grateful for his continuous support and constructive suggestions, which
have shaped this research project into its current form.
I am also deeply indebted to the respondents who willingly participated in this research
study, as their cooperation and support were essential in gathering the necessary data.
Their involvement has been invaluable, and I express my sincere thanks to each and every
one of them.
Furthermore, I would like to extend my deepest appreciation to my friends and family for
their unwavering support and belief in me. Their encouragement and understanding have
been a constant source of motivation.
Lastly, I would like to acknowledge Triton International College for providing the
necessary resources, conducive working environment, and access to library facilities,
which have greatly facilitated the completion of this project.
The contributions of all these individuals and organizations have been instrumental in the
successful execution of this study, and I am truly grateful for their support and guidance.
Akanksha Airee
June 2023
iv
TABLE OF CONTENTS
Certification of Authorship...................................................................................................i
Approval Sheet...................................................................................................................iii
Acknowledgments...............................................................................................................iv
LIST OF TABLES.............................................................................................................vii
LIST OF FIGURES..........................................................................................................viii
LIST OF ABBREVIATIONS.............................................................................................ix
ABSTRACT.........................................................................................................................x
CHAPTER I.........................................................................................................................1
INTRODUCTION................................................................................................................1
1.1 General background........................................................................................1

1.2 Statement of the problem................................................................................4
1.3 Objective of the study.....................................................................................6
1.4 Significance of the study.................................................................................6
1.5 Operational definitions and assumptions........................................................7
1.6 Organization of the study..............................................................................12
CHAPTER II......................................................................................................................14
LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK..................................14
2.1 Review of literature.......................................................................................14

2.1.1 Review of major studies...............................................................................14
2.1.2 Review of recent literature...........................................................................18
2.1.3 Review of Nepalese literature......................................................................21
2.2 Conceptual framework..................................................................................25

2.3 Concluding remarks......................................................................................26
CHAPTER III....................................................................................................................28
RESEARCH METHODOLOGY.......................................................................................28
3.1 Research plan and design..............................................................................28

3.2 Description of the sample..............................................................................29
3.3 Instrumentation and tools..............................................................................29
3.4 Data collection procedure and time frame....................................................30
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3.5 Method of analysis........................................................................................30
3.6 The model specifications...............................................................................31
3.7 Validity and reliability..................................................................................32
3.8 Analysis plan.................................................................................................34
3.9 Limitations....................................................................................................35
CHAPTER IV....................................................................................................................37
RESULTS AND DISCUSSION........................................................................................37
4.1 Presentation and analysis of data..................................................................37

4.2 Respondent’s Profile.....................................................................................37
4.2.1 Gender..........................................................................................................37
4.2.2 Age...............................................................................................................38
4.2.3 Education......................................................................................................39
4.2.4 Marital Status...............................................................................................41
4.2.5 Shopping Habit.............................................................................................42
4.3 Descriptive analysis.......................................................................................43

4.3.1 Impact of Product, Price, Personal Interaction, Convenience, Services and
Physical Appearance on Customer Satisfaction.........................................................43
4.4 Correlation analysis.......................................................................................55

4.5 Regression analysis.......................................................................................56
4.6 Major Findings..............................................................................................58
CHAPTER V….................................................................................................................61
SUMMARY AND CONCLUSION...................................................................................61
5.1 Summary.......................................................................................................61
5.2 Conclusion.....................................................................................................63
5.3 Implication....................................................................................................63
BIBLIOGRAPHY..............................................................................................................64
APPENDIX........................................................................................................................81
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LIST OF TABLES
Table 2-1: Review of major literature................................................................................14
Table 2-2: Review of recent literature................................................................................19
Table 2-3: Review of Nepalese literature...........................................................................22
Table 3-1: Coefficient of Cronbach’s alpha.......................................................................34
Table 4-1: Distributions of Respondents according to Gender..........................................38
Table 4-2: Distributions of Respondents according to age................................................39
Table 4-3: Distribution of Respondents According to their Education..............................40
Table 4-4: Distribution of Respondents on the basis of Marital Status.............................41
Table 4-5: Distribution of Respondents on the basis of their shopping habits..................42
Table 4-6: Customer satisfaction related to product..........................................................44
Table 4-7: Customer satisfaction related to price..............................................................46
Table 4-8: Customer satisfaction related to personal interaction.......................................47
Table 4-9: Customer satisfaction related to convenience...................................................49
Table 4-10: Customer satisfaction related to service.........................................................51
Table 4-11: Customer satisfaction related to physical appearance....................................52
Table 4-12: Customer satisfaction in Bhatbhateni Supermarkets Kathmandu valley........54
Table 4-13: Kendall’s Tau correlation coefficients matrix for the dependent and
independent variables for Bhatbhateni Supermarkets Kathmandu valley.........................56
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LIST OF FIGURES
Figure 2-1: Conceptual framework....................................................................................26
Figure 4-1: Distributions of Respondents according to Gender.........................................38
Figure 4-2: Distributions of Respondents According to Age.............................................39
Figure 4-3: Distribution of Respondents According to their Education............................40
Figure 4-4: Distribution of Respondents on the basis of Marital Status............................41
Figure 4-5: Distribution of Respondents on the basis of their shopping habits.................42
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LIST OFABBREVIATIONS
BBSM BhatBhateni SuperMarket
CO Convenience
CS Customer Satisfaction
PA Physical Appearance
PI Personal Interaction
PRI Price
SE Service
SPSS Statistical Package for the Social Sciences
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ABSTRACT
The research titled "Factors Affecting Customer Satisfaction in Bhatbhateni Supermarket,
Kathmandu Valley" aimed to investigate the various attributes of the supermarket and
their impact on customer satisfaction. The study sought to classify these attributes into
different categories based on their influence on customer satisfaction, providing valuable
insights for supermarkets to make customer-oriented decisions.
In the highly competitive supermarket industry, attracting and retaining customers is

crucial for profitability and competitiveness. Store attributes play a significant role in
influencing consumer store choices, purchase decisions, and overall satisfaction.
Recognizing the store attributes that attract customers is therefore of utmost importance.
While numerous store attributes have been identified, their importance in relation to
customer satisfaction is not equally weighted, and the relationship between attributes and
satisfaction is not always straightforward.
The research aimed to shed light on the importance of each factor and classify attributes
based on their priority and relevance to customers. The study's theoretical framework was
based on a review of existing literature. The dependent variables identified were Product,
Price, Personal Interaction, Convenience, Service, and Physical Interaction. The research
followed a descriptive analytical study design, utilizing questionnaires for data collection,
and employing SPSS for data analysis.
The study included 191 respondents who were customers of the supermarket. Their
opinions were analyzed to understand customer perceptions regarding shopping factors
and their impact on satisfaction in Bhatbhateni Supermarkets Kathmandu valley. Non-
parametric tests such as Kendall's tau-b and step-wise regression were used to analyze the
relationship between shopping factors and their impact on customer satisfaction. The
research design adopted a descriptive approach to gather information on various
variables. The primary data analysis focused on distributing questionnaires online, with a
sample size of 191 participants selected from the population.
The study findings revealed that price, product quality, and personal interaction had a
positive effect on customer satisfaction. Additionally, convenience, physical appearance,
and service had a positive impact on satisfaction. Furthermore, the study indicated that
service and convenience had a significant and positive influence on customer satisfaction.
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Based on the results, the study concluded that competitive pricing and visible product
displays are influential factors for customers in Bhatbhateni Supermarkets Kathmandu
valley. Moreover, the study identified personal interaction between employees and
customers, as well as the convenience customers feel while finding products, as crucial
factors affecting satisfaction in supermarkets.
Overall, this research provides valuable insights for supermarket management to

understand and prioritize the attributes that drive customer satisfaction, enabling them to
make informed decisions and enhance the shopping experience for customers.
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CHAPTER I
INTRODUCTION
1.1 General background
Traditionally, companies have relied only on differentiation of products and services to

retain their customers and also to satisfy the consumers. However, times have changed,
due to fierce competition from new players entering the market, imitation of new features
and increase in number of new offers, customers have acquired new choices and they
have also become more price sensitive, which has forced marketers to adapt differentiated
and customer oriented strategies in order to enable them to stand out in the competition
and gain a competitive edge. A supermarket is a retail store that combines a department
store and a supermarket, often a very large establishment; supermarkets offer a wide
variety of products such as electronic goods, groceries, vegetables and fruits,
household items, stationeries, health care products, consumer durable, dress material,
furniture's furnishing and etc. It's in retail. It's a combination of supermarket and
departmental store. Supermarkets offer shoppers a one-stop shopping experience.
The emergence of Super Stores as a novel concept in Nepal is gaining traction,

particularly in urban areas. With increasing awareness among customers about
convenience and their own lifestyles, many individuals now prefer visiting a Chain
Superstore for their daily shopping needs instead of smaller departmental stores.
Therefore, the growth of this sector relies heavily on customer satisfaction. Customer
satisfaction refers to the extent to which customers' expected service levels are met by the
actual service provided in a Super Store. It involves a range of activities aimed at
enhancing satisfaction by ensuring that products or services meet customer expectations.
Measuring service quality is challenging due to its unique characteristics, including
intangibility, heterogeneity, inseparability, and perishability (Bateson, 1995). Moreover,
service quality is closely linked to the concepts of perceptions and expectations.
Assessing the functional quality of a service often involves evaluating customer attitudes
through tools such as customer satisfaction questionnaires.
Yuen & Chan (2010) assert that in today’s competitive grocery store sector, customer
demands are bound to increase from time to time due to the improvement of service
quality in parallel with product variety. Due to the tremendous growth of service industry
in which retailing sector plays an important role, it is vital for retailers to understand the
degree of
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importance of listening to the inner voice of customers´ needs to create, increase level of
satisfaction. Ultimately, effective satisfaction leads to prospective long term relationship
and loyalty through repeating purchase and recommendation, which helps retailers
maintain their market share and position. Consumer´s needs have become sophisticated
and it is imperative that grocery stores look for building long term and stable relationships
with their customers as a way of driving satisfaction up since satisfaction does translate
later into loyalty and retention
Tyagi (2008) express that retailers looking to adopt a customer-centric strategy to succeed
in the hyper-competitive environment, it is vital to understand the impact of such a
strategy on a retailer’s business functions. While the impact on merchandising is well
understood in terms of sharper assortment and improved presentation, the impact
on supply chain needs to be studied in detail. This would ensure the alignment of
customer- centricity with the organization’s overall direction and growth of revenues and
profitability while increasing customer satisfaction levels.
Singh (2006) emphasized that considering the needs and desires of customers is a crucial
factor in achieving organizational success. This explains why researchers like Reicheld &
Sasser (1990), Ciavolino & Dahlgaard (2007), Singh (2006), LaBabera & Mazursk
(1983), Carpenter (2008), and Bridson et al (2008) have consistently emphasized the
significance of customer satisfaction, loyalty, and retention on a global scale. Customer
satisfaction is the buzzword used by the business people for the success of organization in
the present days. Due to increase in competition in every product –line it becomes
difficult for the companies to retain the customers for longer period, so to retain the
customers for longer period the marketer has to do only one thing i.e. "Satisfy the
Customers". The benefits of customer satisfaction include increases in revenues,
decreases in customer-related transaction costs and reductions in price elasticity among
repeat buyers (Lewin, 2009). Compared with the other services, the supermarket industry
operates on relatively small profit margins (Siu & Chow, 2003).
According to Hansemark & Albinsson (2004) cited in Singh (2006), “satisfaction is an
overall attitude towards a product provider or an emotional reaction to the difference
between what customers expect and what they actually receive regarding the fulfillment
of a need”. Kotler (2000) also define satisfaction as a person’s feelings of pleasure,
excitement, delight or disappointment which results from comparing a products perceived
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performance to his or her expectations. Some studies indicate that decision about where to
shop precede brand choice (Millan and Howard, 2007). There are several key factors that
can influence consumer choice and retailer perception. Purchase experience, assortment,
price, promotion, advertising, store brand quality, service and innovation are key
variables that determine the image of supermarket on consumers.
Nowadays a consumer can choose of a large variety of supermarkets and switching a

supplier is not a problem. Due to this, meeting the consumers’ requirements and
achieving their satisfaction should be fundamental goal for the supermarkets; because as
claims Mohan (2013), improving customer satisfaction leads to improved business results
of the firm in terms of sales and profitability. As notice Pilelienė and Grigaliūnaitė (2013)
there are a lot of results proving direct positive influence of customer satisfaction to
increased economic benefits of the owners and other stakeholders of the organization.
BhatBhateni Supermarket is one of the most well-known and popular supermarket chains
in Nepal. It has a rich history that spans several decades. BhatBhateni Supermarket was
founded by Mr. Min Bahadur Gurung in 1984. It started as a small grocery store located
in Bhatbhateni, a residential area in Kathmandu, Nepal. The store initially catered to the
local community, providing basic household necessities and grocery items. With a vision
to offer a more comprehensive shopping experience and meet the growing demands of
consumers, BhatBhateni expanded its operations and transformed into a supermarket. The
store introduced a wider range of products, including fresh produce, bakery items, dairy
products, electronics, clothing, cosmetics, and household goods. It was opened with an
investment of NPR 35000 near Bhat Bhateni Temple at Naxal from where it derives its
name. The chain has store in 24 locations; thirteen inside the Kathmandu Valley and
eleven elsewhere. It employs more than 4,500 full-time employees, with daily sales
exceeding NRs 5.5 Crore (US$550,000.00). Bhat-Bhateni is also the one of the largest
taxpayer in the retail sector in Nepal.
The above discussion shows that the studies dealing with the role of shopping variable
(factor) on customer satisfaction and customer satisfaction are of great significance.
Though there are findings in the context of different countries, no such findings using
more recent data exist in the context of Nepal. Hence, this study focuses on the customer
satisfaction in Bhatbhateni Supermarkets Kathmandu valley.
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1.2 Statement of the problem
The service industry, particularly retail, has played a vital role in stimulating the global
economy, even during times of crisis and economic downturn. With the rapid expansion
of the retail sector worldwide, it has become increasingly important for businesses to
prioritize customer satisfaction in their strategies. Supermarkets and hypermarkets have
become prominent players in the food distribution sector, gradually replacing traditional
markets as people rely on them for their essential grocery needs. Grocery shopping has
become an integral part of modern life, providing necessary sustenance for many
households. Unlike earlier studies that focused mainly on industries like banking,
healthcare, and beauty, researchers have recognized the significance of studying
supermarkets, considering both product and service aspects.
In Nepal, supermarkets have a significant impact on the economy as major employers and
contributors to infrastructure development through substantial tax revenues. They also
play a crucial role in improving the standard of living by providing essential food items
and basic necessities. However, Bhatbhateni Supermarkets Kathmandu valley face tough
competition from small retail shops, markets near open borders with India and China, and
even among themselves. Despite being the oldest and a national market leader, Bhat-
Bhateni Supermarket is not immune to this competitive landscape.
Customer satisfaction should be the primary focus of any firm's marketing strategy. The
success and sustainability of businesses heavily rely on satisfying their customers. In the
grocery retail sector, customers hold immense importance, consistently emphasized by
researchers. As Zairi (2000) cited in Singh (2006) rightly stated, "Customers are the very
purpose of our endeavors. Instead of relying on us, we depend greatly on them.
Customers are not the source of a problem; therefore, we should not dismiss them.
Neglecting customers could jeopardize our future and security." This profound insight
highlights why organizations today focus on customer satisfaction and loyalty.
Product quality plays a critical role in determining customer satisfaction, influenced by

both performance and expectations. Chaudhuri (2000) suggested that customers perceive
services provided by most supermarkets as similar. Therefore, this study aims to identify
factors that enhance satisfaction and those that may lead to dissatisfaction. Reinartz and
Kumar (2000) found that replacing loyal customers with new ones can be costly for
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organizations to maintain smooth operations, emphasizing the importance of prioritizing

quality and efficient service for successful and profitable business.
In this context, satisfaction refers to a supermarket meeting customer expectations

without exceeding or disappointing them. However, retailers strive to go beyond
satisfaction by exceeding customer expectations as a competitive strategy. Customer
satisfaction has become a central strategic focus for customer-oriented firms across
various industries (Szymanski & Henard, 2001). Recent research has focused on
measuring customer satisfaction levels (Tse & Wilton, 1988; Myers, 1991; Peterson &
Wilson, 1992; Tom & Lacey, 1995; Hackl et al., 2000) and identifying cues indicating
service quality to customers (Carman, 1990; Parasuraman et al., 1994).
Customer satisfaction is a critical concern for businesses in diverse industries, aligning

with the customer-oriented philosophy and principles of continuous improvement
embraced by modern enterprises. Customers, whether individuals or businesses, play a
pivotal role as purchasers of goods and services provided by businesses. Customers
represent the ultimate goal for businesses, driving demand and contributing to revenue
generation. Many businesses adhere to the belief that "the customer is always right"
because satisfied customers are more likely to continue purchasing goods and services.
In today's fiercely competitive business landscape, organizations must prioritize customer

satisfaction and loyalty to thrive and succeed. It directly influences their overall success,
profitability, and long-term sustainability.
The research focuses on assessing the current level of customer satisfaction. It aims to
explore various shopping factors that directly impact customer satisfaction. The main
objective of this study is to address the question of customer satisfaction by seeking
answers to specific problems. These problems can be clearly understood by addressing
the following questions:
i. What are customers' perceptions on Product, Price, Personal interaction,

Convenience, Physical appearance, and Service of Bhatbhateni Super Market
(BBSM)
ii. What is the relationship between shopping factors and customer satisfaction in
Bhatbhateni supermarkets Kathmandu valley?
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iii. What are the key factors that influence the level of customer satisfaction in
Bhatbhateni supermarkets Kathmandu valley?
iv. Does product quality have an impact on customer satisfaction in supermarkets?
v. Does price affect the level of customer satisfaction?
vi. Is there a relationship between personal interactions and customer satisfaction?
vii. Is there a relationship between physical appearances and customer satisfaction in
Bhatbhateni Supermarkets Kathmandu valley?
Certain studies have revealed that uncertified low-quality consumer products have entered
the market, raising concerns about the credibility of certification (Ananias & Nastica,
2004). Unethical producers continue to introduce uncertified products to the market,
while consumers, due to ignorance and financial constraints, tend to overlook quality
certifications, placing less emphasis on quality issues.
1.3 Objective of the study
The major objective of this study is to identify the key factors that contribute to customer
satisfaction in Bhatbhateni Supermarkets, Kathmandu. The specific objectives are as
follows:
i. To Analyze the perception of consumers on the level of Product, Price, Personal

interaction, Convenience, Physical appearance, and Service of BhatBhateni Super
Market (BBSM).
ii. To determine the level of customer satisfaction at Bhat Bhateni Super Market
(BBSM).
iii. To Investigate the factors that influence customer satisfaction at Bhat Bhateni
Super Market (BBSM) in Nepal.
iv. To investigate the relationship of product, price, personal interaction,
convenience, physical appearance, and Service with customer satisfaction
1.4 Significance of the study
The primary objective of this study is to identify the essential factors that contribute to
meeting customer requirements and achieving customer satisfaction. This knowledge will
enable stores to develop improved marketing plans and customer-centric services in order
to stay competitive. By gaining a deeper understanding of customer perceptions,
companies can take necessary actions to meet customer needs, evaluate their strengths
and weaknesses,
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benchmark themselves against competitors, and plan for future improvements in their
work practices and processes.
Sales and marketing managers can utilize the findings of this research to assess the
effectiveness of their market strategies and sales techniques. The information obtained
from this study will also enhance their understanding of customers' genuine needs and
preferences when shopping in a supermarket. By comprehending the key factors that
influence customer satisfaction, supermarket owners can increase sales and generate
higher revenue. They can adapt their services, personal interactions, convenience, product
offerings, prices, and physical appearance to better align with customers' expectations.
This study, which focuses on the factors that impact customer satisfaction with regular
customer cards, can serve as a foundational resource for students interested in exploring
consumer decision-making. Additionally, the research findings can provide valuable
insights to competitors on how to identify and retain their own customers. The outcomes
of this study will assist competitors in refining their strategies for predicting the factors
that influence customer satisfaction.
For Bhatbhateni Supermarkets Kathmandu valley, this study holds significant importance
as it provides a guide for understanding the influence of perceived factors on customer
satisfaction. It will offer valuable insights and a clear direction for future research
endeavors in this field. Although there have been efforts to maintain the service of
Bhatbhateni supermarket in response to increasing customer demand, there is still a need
for greater concern about the level of customer satisfaction from the perspective of
business organizations and departmental stores. As our needs and demands continue to
grow, it is crucial to prioritize customer satisfaction in order to meet the rising
expectations.
1.5 Operational definitions and assumptions
Product
Products are designed to meet the needs of customers. They can include a variety of
items, such as food, clothing, and electronics. Customers consider factors such as product
variety, durability, brand, and manufacturing and expiry dates when making purchasing
decisions.
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Fornell (1992) found that customer satisfaction is influenced by product-related factors.

He argued that satisfaction stems from a customer's quality experience with a product or
service.
Hansemark et al. (2004) define satisfaction as an overall attitude towards a product

provider or an emotional response based on the gap between customer expectations and
the actual fulfillment of a need. Similarly, Kotler (2000) describes satisfaction as an
individual's feelings of pleasure, excitement, delight, or disappointment resulting from
comparing a product's perceived performance to their expectations.
In short, products are an important factor that can influence customer satisfaction.
Businesses can improve customer satisfaction by offering products that meet the needs of
their customers, are of high quality, and are priced reasonably.
Based on these insights, the study formulates the following hypotheses:
H1: There is a positive relationship of product with customer satisfaction.
Price
Price is the amount of money that customers pay for goods or services. It is often referred
to as the asking price or selling price. The perceived "reasonableness of price" is
positively correlated with customer retention, indicating its importance. Gupta (2014) also
found a positive impact of price sensitivity on customer satisfaction.
Discounts can significantly influence customer satisfaction. Wen-Shinn Low et al. (2013)
stated that social satisfaction is positively associated with price sensitivity, particularly
among female customers and customers who frequently patronize a business.
In short, price is an important factor that can influence customer satisfaction. Businesses
can improve customer satisfaction by offering reasonable prices and discounts.
Based on these findings, the study formulates the following hypotheses:
H2: There is a positive relationship of price with customer satisfaction.

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Personal Interaction
Interpersonal interaction is all the actions and behaviors that people engage in with each
other. It can involve communication, emotional exchange, and relational dynamics.
Interpersonal interaction can be verbal or nonverbal.
Interactions with staff members during the purchase process are also considered a form of
interpersonal interaction. This type of interaction can influence customer satisfaction. The
knowledge, behavior, attitudes, and responsiveness of staff members play crucial roles in
shaping the quality of interpersonal interactions.
In addition to interactions with staff members, interactions between customers themselves

can also influence customer satisfaction. People often shop for social reasons, so the
interactions they have with other customers can be important.
Nguyễn Thị Thu Thương (2016) found that factors such as product quality, pricing,
personal interaction, convenience, services, and store ambiance have a positive impact on
customer satisfaction with supermarkets. Additionally, compatibility between customers
has been shown to contribute to higher satisfaction levels and intentions to continue
patronizing a business (Martin et al., 1989).
In short, interpersonal interaction is an important factor that can influence customer

satisfaction. Businesses can improve customer satisfaction by providing staff members
who are knowledgeable, helpful, and responsive. Businesses can also create a welcoming
and inviting atmosphere that encourages customer interaction
H3: There is a positive relationship of personal interaction with customer satisfaction.
Convenience
Actual convenience refers to how easy and efficient it is to do something, such as cooking
a meal or shopping for groceries. Service convenience is about making things easier and
more efficient for customers, such as providing parking, storage, and payment options.
Nguyễn Thị Thu Thương (2016) found that convenience and services have a positive
impact on customer satisfaction in supermarkets. Factors such as parking facilities,
storage location, payment methods, return policies, and additional amenities can all
contribute to
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convenience and customer satisfaction. Customer interaction can also be a factor, as it can
provide opportunities for customers to meet others who share their interests.
In short, convenience and services are important factors that can affect customer
satisfaction in supermarkets. Businesses can improve customer satisfaction by providing
convenient and efficient services, such as easy parking, convenient storage options, and
flexible payment methods. Businesses can also encourage customer interaction by
providing opportunities for customers to meet others who share their interests.
H4: There is a positive relationship of convenience with customer satisfaction.
Physical Appearance
The physical appearance of a business can have a big impact on whether or not people
choose to shop there. The exterior of a business is especially important, as most shoppers
will consider it when deciding whether or not to go inside. In fact, a third of consumers
have chosen not to enter a business because it didn't look like the kind of place they
would typically shop at.
Cleanliness and organization are just as important as customer service and price when it
comes to choosing a business. More than 80% of consumers have visited a business only
once and never returned because it didn't meet their expectations.
Parasuraman et al. (1988) found that physical appearances can significantly improve
customers' mental outlook, which can affect their satisfaction with the quality of service.
In short, the physical appearance of a business can influence people's initial impression of
the business, their decision to shop there, and their satisfaction with the quality of service.
Businesses can improve their physical appearance by keeping the exterior clean and well-
maintained, the interior clean and organized, and providing a welcoming and inviting
atmosphere.
H5: There is a positive relationship of physical appearance with customer satisfaction.

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Service
Barsky (1992) found that customer satisfaction is important in service delivery. Meeting
customer needs and desires can lead to increased market share through repeat purchases
and referrals. Services are characterized by variable human activity, rather than a strictly
defined process. Bhatta and Durgapal (2016) found a strong correlation between service
quality dimensions and customer satisfaction.
Supermarkets are self-service retail stores that offer a wide range of food and household
products. They are larger than traditional grocery stores and offer a broader selection of
goods. In addition to the typical services offered, supermarkets may include additional
amenities such as food courts, children's play areas, security measures, and home delivery
services. These factors contribute to customer satisfaction. Jenet Manyi Agbor (2011)
found a relationship between service quality dimensions and customer satisfaction.
In summary, customer satisfaction is important in service delivery and supermarkets can

improve customer satisfaction by offering a wide range of products and services,
competitive prices, friendly and helpful customer service, a clean and well-organized
store, and an efficient checkout process.
H6: There is a positive relationship of service with customer satisfaction.
Customer satisfaction
Customers are the people or organizations that buy products or services from businesses.
They are stakeholders that give money to businesses in return for the services they offer
in an effort to meet needs and increase satisfaction.
Satisfaction is a subjective feeling that people have when they are happy with the goods
or services they have gotten. It is based on a person's expectations and perceptions of the
product or service. For example, if a customer expects a product to be of high quality and
it meets or exceeds their expectations, they will be satisfied. However, if the product does
not meet their expectations, they will be dissatisfied.
There are many different ways to measure customer satisfaction. One way is to ask
customers directly how they feel about the product or service. This can be done through
surveys, interviews, or focus groups. Another way to measure customer satisfaction is to
1
look at customer behavior, such as whether they continue to do business with the
company or recommend the company to others.
Customer satisfaction is important for businesses because it can lead to repeat business,
positive word-of-mouth, and increased sales. When customers are satisfied with a product
or service, they are more likely to do business with the company again and to recommend
the company to others. This can lead to increased sales and profits for the business.
There are many factors that can affect customer satisfaction, such as the quality of the
product or service, the price, the customer service, and the overall experience. Businesses
that want to improve customer satisfaction need to focus on these factors and make sure
that they are meeting or exceeding customer expectations.
One way to improve customer satisfaction is to listen to customer feedback. Businesses

can collect customer feedback through surveys, interviews, or focus groups. This
feedback can be used to identify areas where the company can improve.
Another way to improve customer satisfaction is to train employees on customer service.

Employees who are knowledgeable about the product or service and who are friendly and
helpful can make a big difference in the customer experience.
Finally, businesses need to make sure that they are providing a high-quality product or
service. This means meeting or exceeding customer expectations in terms of quality,
performance, and features.
By focusing on these factors, businesses can improve customer satisfaction and achieve
their business goals.
1.6 Organization of the study
The study is structured into five chapters. In Chapter one, an overview of the study is
presented, which includes the background, research problem, objectives, and scope. The
chapter establishes the justification for conducting the study. Chapter two focuses on the
theoretical framework of customer satisfaction in Bhatbhateni Supermarkets Kathmandu
valley. It encompasses the development of hypotheses and a review of previous empirical
studies conducted in this field. Chapter three outlines the methodology employed in the
study, covering aspects such as the nature and sources of data, sampling techniques,
survey methods, econometric modeling, variable descriptions, proxies used, and
limitations of the
1
study. This chapter is of utmost importance as the reliability of the findings relies on the
empirical methodology employed. Chapter four presents and analyzes the collected data
using various financial and statistical tools. It also includes an examination of survey
responses pertaining to different facets of customer satisfaction. Finally, in Chapter five, a
summary of the main findings of the study is provided, along with recommendations for
further research.
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CHAPTER II
LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK
This chapter provide conceptual framework of the study and deals with review of
empirical studied. It is divided into three sections. First section consists of an in-depth
review of related studies in the context of both developed and emerging financial markets
around the globe. Second section presets a conceptual framework. And, finally the third
section presents remarks or research gap on the conceptual and empirical review.
2.1 Review of literature
A literature review provides a succinct summary of the pertinent studies, theories, and
body of knowledge. It looks into the procedures and approaches used in earlier
investigations and summarizes the key findings. A carefully chosen body of published
work, including research investigations, literature reviews, and theoretical pieces, is
critically analyzed in the review. It plays a crucial role in academic articles by offering
insight into the state of the field, important findings, and theoretical and methodological
contributions. A literature review examines and discusses the body of knowledge that
already exists in a particular subject of study. It requires evaluating and pointing out the
parallels and differences between prior pertinent investigations. Additionally, it assesses
the methodology used by earlier studies and looks at the key findings.
i. Review of major studies.

ii. Review of recent studies.
iii. Review of Nepalese studies.
2.1.1 Review of major studies

The reviews of major studies are summarized in table 2-1. This section reviewed major
articles on the customer satisfaction in Bhatbhateni Supermarkets Kathmandu valley.
Table 2-1: Review of major literature
Study Major findings

Anderson and It was found that when perceived service quality was high, it resulted
Sullivan (1993) in increased customer satisfaction.
1
Mehta (2006) Found that consumers in Ludhiana, India perceive shopping malls as
experiential spaces, ranking shopping experience, dining options, and
entertainment as top preferences.
Palto & Datta The study recognizes that the longer an organization retains its
(2010) customers, the more it stands to benefit from a consistent revenue
stream.
Seiranevoda
Identified the factors influencing consumers to shop at Superstore in
(2011)
Bangladesh in specific six probable extrinsic cues. The six extrinsic
cues- Brand Image, Perceive Price, Perceived Quality, Product
Availability and Location of the store.
Bhardwaj Examined the relationships between attribute perceptions, consumer
(2011) satisfaction, and sales performance using a large dataset, addressing
the nonlinearities and asymmetries involved, and provided an
example of how firms can use these connections to develop
satisfaction policies
that drive store revenues.
Muzondo and The findings from their factor analysis validated the importance of
Mutandwa six out of the seven Ps of marketing (product, price, promotion,
(2011) place, process, and physical evidence) in influencing consumers'
choice of store for their main grocery shopping in a hyperinflationary
economic
context.
Azad et al. Satisfied customers exhibit positive attitudes towards supermarkets,
(2011) leading to repeat purchases, while dissatisfaction reflects a failure to
meet customer expectations
Masum, et al. Customers demonstrated a positive attitude towards green marketing,
(2012) as they were not primarily concerned with price when purchasing
environmentally friendly products
Found that product, price, personal interaction, convenience,
Nguyễn (2016) services, and physical appearance positively influenced customer
satisfaction,
with price being the most influential factor.
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Anderson and Sullivan (1993) conducted a study to explore the relationship between
perceived service quality, customer satisfaction, and its antecedents and consequences.
They analyzed a unique database consisting of a nationally representative survey of
22,300 customers in Sweden who had purchased various major products and services
during 1989- 1990. The researchers developed a model that explicitly linked the factors
influencing satisfaction in a utility-oriented framework. The model was tested against
alternative hypotheses from the existing satisfaction literature. The study examined
several well- known experimental findings from satisfaction research in a real-world
setting on a national scale. It was found that when perceived service quality was high, it
resulted in increased customer satisfaction. The survey also revealed that when the quality
of a product or service fell short of expectations, it had a greater impact on satisfaction
and repurchase intentions compared to instances where the quality exceeded expectations.
Furthermore, the study observed that disconfirmation of expectations was more likely to
occur when the quality was easily evaluable. In terms of variation across different firms,
the study indicated that firms providing high levels of satisfaction experienced a lower
elasticity of repurchase intentions. This implied that these firms benefited from a long-
term reputation effect, as they were able to maintain customer loyalty through
consistently high levels of satisfaction.
Mehta (2006) investigated the expectations of Ludhiana residents in India regarding their
overall shopping experience and the entertainment aspects of shopping malls. The study
revealed that consumers perceive malls as more than just places to buy products, but also
as venues for experiencing various activities. When asked to rank the features that attract
customers in a mall, the preferred order of preference was shopping experience, eating
joints, entertainment, apparel section, jewellery, music/books section, reasonable prices,
decoration items, and beauty salons. To make malls more appealing to customers, Mehta
suggested providing free parking for regular customers or those making substantial
purchases, issuing parking cards for free designated parking. Furthermore, malls with
PVR multiplexes could offer "weekend specials" such as classic movies for children.
Palto & Datta (2010) conducted a research study titled "An Examination into Customer
Relationship Marketing and Customer Retention in Grocery Food Retailing in
Bangladesh" where he emphasized the significance of customer retention for food retail
organizations. Customer retention has become a crucial concern for these organizations as
they aim to maintain their business, increase customer visits, maximize profits, and
establish a
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competitive advantage in the food sector. The research aims to identify, describe, and
analyze the factors that influence customer retention in the context of food retailing in
Bangladesh. The study recognizes that the longer an organization retains its customers,
the more it stands to benefit from a consistent revenue stream. Therefore, the research
focuses on exploring customer retention within the framework of relationship marketing.
It specifically examines the factors that contribute to building customer relationships in
the food retailing industry and investigates how these relationships foster customer
retention.
Seiranevoda (2011) has conducted study on The Factors that Influence the Consumer in
Choosing Departmental Store in Bangladesh where he identified the factors influencing
consumers to shop at Superstore in Bangladesh in specific six probable extrinsic cues.
The six extrinsic cues- Brand Image, Perceive Price, Perceived Quality, Product
Availability and Location of the store.
Bhardwaj (2011) aimed to assess the connections between attribute perceptions,

consumer satisfaction, and sales performance in the food retail industry of India. The
study utilized a large dataset consisting of consumer satisfaction feedback and sales data
from around 180 consumers. The hypotheses developed for the study took into account
the nonlinearities and asymmetries inherent in these relationships. Additionally, the
research presented an example illustrating how firms can utilize the estimated linkages to
formulate satisfaction policies that are expected to enhance store revenues.
Muzondo and Mutandwa (2011) examined the impact of the seven Ps of marketing on
consumers' decisions regarding their primary grocery shopping store in a
hyperinflationary economy. The findings from their factor analysis validated the
importance of six out of the seven Ps of marketing (product, price, promotion, place,
process, and physical evidence) in influencing consumers' choice of store for their main
grocery shopping in a hyperinflationary economic context.
Azad et al. (2011) examined customer perceptions of supermarkets in Bangladesh and

aimed to identify the factors that contribute to customer satisfaction. They found that
customer satisfaction levels vary from person to person and have no set limit. However,
there are certain common factors that play a significant role in determining overall
customer satisfaction in supermarkets. When customers are satisfied with their shopping
experience at supermarkets, it results in a positive attitude towards supermarkets and
increases the
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likelihood of repeat purchases. On the other hand, if customers are not satisfied, it
indicates that the supermarket is failing to fulfill its purpose for the customers.
Masum et al. (2012) conducted a research study to examine the status of superstores in
Bangladesh in terms of offering their own brand of agricultural products. The study
collected data from 180 individuals who had visited 10 different superstores in Dhaka
city. Additionally, opinions on green marketing practices were obtained from 10 store
personnel representing these 10 stores. The findings indicated that only 30% of the
participants were aware of green marketing, while the remaining 70% had no knowledge
about it. This low level of awareness was observed among both customers and store
officials. The study further revealed that awareness of green marketing was higher among
male customers, younger customers below the age of 25, and customers with a monthly
income below Tk. 15,000. Moreover, customers were not fully confident in the
superstores' ability to provide environmentally friendly products. However, customers
demonstrated a positive attitude towards green marketing, as they were not primarily
concerned with price when purchasing environmentally friendly products. The study
utilized t-tests and chi-square tests to draw conclusions but did not analyze any path
coefficients to determine significant associations among the variables used.
Nguyễn (2016) conducted a study to examine the factors influencing customer

satisfaction towards supermarkets. The study utilized a sample of 200 responses from
four selected supermarkets. The analysis revealed that customer satisfaction was
influenced by several dimensions, namely product, price, personal interaction,
convenience, services, and physical appearance. Regression Analysis was employed to
determine the impact of these factors on customer satisfaction. The research findings
indicated that all of these factors had a positive influence on customer satisfaction
towards the studied supermarkets. Notably, price emerged as the strongest driver of
customer satisfaction.
2.1.2 Review of recent literature

The recent literature review related to the customer satisfaction in Bhatbhateni
Supermarkets Kathmandu valley is shown in Table 2-2.
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Table 2-2: Review of recent literature

Ying and Aun The study found that the three independent variables had a positive
(2019) significant impact on consumer choice, with ambience being the
highest degree of influence
Razu and Roy The identified factors influencing consumer choice of retail stores
(2019) include problem-solving, physical environment, customer service,
customer trust, commitment, and product accessibility.
Dey & Vashisht Study showed that customers give high weightage to the products
(2017) specific features, and the policies related to customers
Razak et al. The study found that the quality of the toothpaste product played a
(2016) more significant role in satisfying customers compared to its
functional value.
Mahfooz (2014) The author has found that the higher level of service quality will
have a significant effect on establishing satisfaction.
Ruggieri et al. The findings supported the link between quality and satisfaction,
(2014) highlighting the existence of different consumer groups associated
with quality dimensions.
Analysis indicated that store image was significantly and positively
Salahuddin and
affected by the location, store service quality, price perception, and
Akbar (2014)
store assortment..
Jahanshahiet et al. The study found positive correlation between the customer service
(2011) and product quality with customer satisfaction and loyalty
Ying and Aun (2019) conducted to understand the factors that influence consumer choice
of shopping malls in the Klang Valley area of Malaysia, considering factors like tenant
mix, access convenience, and ambience. The study collected 393 responses using a
convenience sampling method and distributed the questionnaire online. Out of the total
responses, 384 were applicable for analysis. The study found that the three independent
variables had a positive significant impact on consumer choice, with ambience being the
highest degree of influence. The study suggests that mall operators and retailers need to
focus on improving the supported factors to provide a brand-new shopping experience to
entice customers to visit the mall.
2
Razu and Roy (2019) explored the factors that influence consumer behavior in the retail
sector, focusing on the Sylhet region in Bangladesh. The study used a structured
questionnaire to collect data from 350 respondents and employed PCA to reduce 23
variables to 6 factors. The identified factors influencing consumer choice of retail stores
include problem-solving, physical environment, customer service, customer trust,
commitment, and product accessibility.
Dey, & Vashisht, (2017) aimed to measure the disparity between customers' expectations
and perceptions of services provided by organized retail stores in Gwalior. Primary data
was collected through surveys, utilizing the opinions of customers from five retail stores:
Big Bazaar, Vishal Mega Mart, Rawaldas True Mart, Anand Stores, and Gwalior Basket.
Each store had 100 customers who completed questionnaires. The findings revealed a gap
between customer expectations and their actual experiences of service quality in
organized retail stores. This discrepancy poses a concern for retailers who seek to
enhance their customer base and retain existing customers by increasing customer
satisfaction levels. Current study showed that customers give high weightage to the
products specific features, and the policies related to customers thus, retailers should try
to improve these two factors for improving the experience of the customers towards the
services offered by the organized retail stores in Gwalior.
Razak et al. (2016) conducted a quantitative study using Likert scale questionnaires to
investigate the impact of product quality improvement and competitive pricing on
customer satisfaction. The research focused on the customer value perception of
toothpaste as a convenience product in a metropolitan community. Structural Equation
Modeling was used for inferential statistics, and the study found that the quality of the
toothpaste product played a more significant role in satisfying customers compared to its
functional value. The population of the study comprised toothpaste customers aged 17
and above residing in Bekasi, Indonesia, selected through purposive sampling.
Mahfooz (2014) has evaluated on the relationship between service quality and customer
satisfaction in hypermarkets of Saudi Arabia. Self-administered questionnaire was used
for the data collection using convenience sampling technique. Descriptive statistics were
used for the analysis. The author has found that the higher level of service quality will
have a significant effect on establishing satisfaction.
2
Ruggieri et al. (2014) conducted a study to explore the relationship between customer
satisfaction, quality factors, and competitive positioning. The study aimed to identify
distinct customer clusters based on quality perceptions and demonstrated that satisfaction
is influenced by the quality of the product or service. Using a statistical approach, an
empirical survey with a questionnaire was conducted to collect data, and descriptive and
multivariate statistical analyses were performed. The findings supported the link between
quality and satisfaction, highlighting the existence of different consumer groups
associated with quality dimensions. The study also addressed the existence of a construct
that combines quality and customer satisfaction, specifically within a particular service
sector, which is a topic of ongoing debate in the scientific community.
Salahuddin and Akbar (2014) conducted a study in Bangladesh's retail superstore

context to examine the factors influencing store image. They collected 226 responses
through a structured questionnaire from shoppers at three outlets of a prominent retail
superstore in Dhaka city. Data analysis confirmed the reliability of study constructs like
location, price perception, store assortment, store service quality, communication, and
store image. However, the study didn't establish the discriminant validity of these
constructs. The findings revealed that price perception, location, store assortment, and
store service quality significantly and positively influenced store loyalty. Among these
factors, location was identified as the most important and influential in shaping store
image. Although the study included communication in the conceptual framework, no
statistical test was conducted to examine its effect on store image formation.
Jahanshahiet et al. (2011) analyzed the effects of customer service and product quality
on customer satisfaction and loyalty. The study found positive correlation between the
customer service and product quality with customer satisfaction and loyalty. A study on
consumer attitudes towards online shopping in Jordan found that higher levels of
perceived web quality lead to higher levels of trust in an online shopping web site (Al-
Debei, 2015).
2.1.3 Review of Nepalese literature

The review of Nepalese studies related to the customer satisfaction in Bhatbhateni
Supermarkets Kathmandu valley is shown in Table 2-3.
2
Table 2-3: Review of Nepalese literature

Manandhar & Found that product quality, price, location, store layout and design,
Kafle (2023) customer service, and promotions are key considerations for
consumers when selecting a shopping destination
These findings suggest that factors such as fair pricing, high product
quality, attractive promotions, helpful personnel, convenient
Yadav (2023)
distribution channels, and pleasant store environments can stimulate
consumer purchasing intentions.
Khanal & Factors influencing supermarket satisfaction include product variety,
Sapkota price, and service delivery, while other facilities have a lesser impact.
(2022)
Niroula & The results indicate a positive relationship between product features
Gyawali and satisfaction
(2022)
Manandhar Findings suggest that consumers' perceptions of other customers
(2021) significantly influence their service experience and revisit intention,
emphasizing the importance of considering the impact of other
customers when designing restaurant settings
Dhakal & The findings indicate that consumers perceive Bhat Bhateni Super
Siwakoti Market as a convenient option in Biratnagar, with satisfaction
(2020) regarding product variety, pricing, quality, product arrangement, and
additional services.
Jha & Sharan, Consumers now view shopping as an enjoyable experience due to the
(2020) availability of diverse goods, convenience, cleanliness, and additional
amenities like entertainment and parking.
Rajbhandari & Factors such as the store's general interior, store layout, interior
Intravisit display, and human variables were found to have an impact on
(2017) customer behavior, emphasizing the significance of atmospheric
attributes for supermarket success.
Gnawali The results indicate moderate satisfaction among respondents, with
(2016) the method of payment and location being the most significant
factors.
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Personnel service is found to be less significant, suggesting a need for

improvement in selection and training
Manandhar & Kafle (2023) studied the factors influencing consumers' choice of
shopping destination, with a focus on Bhatbhateni Supermarket in Bharatpur, Nepal. The
study surveyed 120 respondents and found that product quality, price, location, store
layout and design, customer service, and promotions are key considerations for
consumers when selecting a shopping destination. Demographic factors such as age,
caste, place of residence, educational attainment, and income source are linked to the
choice of shopping destination. Gender and marital status were not significant factors.
The findings have practical implications for retailers aiming to attract and retain
customers in competitive markets, providing insights for effective marketing strategies
and customer satisfaction. The study also suggests the importance of further research on
consumers' shopping behavior in the retail sector.
Yadav (2023) investigated the influence of marketing mix variables on consumer buying
behavior in Kathmandu Valley. The variables examined include price, product,
promotion, personnel, place, and store atmosphere. Data is collected through a structured
questionnaire from 150 respondents. The results indicate that price, product quality,
promotion, personnel interaction, place, and store atmosphere all have a positive impact
on consumer buying behavior. These findings suggest that factors such as fair pricing,
high product quality, attractive promotions, helpful personnel, convenient distribution
channels, and pleasant store environments can stimulate consumer purchasing intentions.
Khanal & Sapkota (2022) suggested that customer satisfaction refers to the level of
satisfaction customers experience with a company's goods or services, often measured by
repeat business. This study focuses on analyzing customer satisfaction in supermarkets in
Rupandehi district, Nepal. The study examines variables such as service delivery,
facilities, product variety, and product price. Findings from a sample of 380 respondents,
analyzed through multiple regression analysis, reveal that customers are satisfied with
service delivery, product variety, and facilities, but not with product price. The study
concludes that customers are primarily drawn to supermarkets due to product variety and
availability, and factors influencing supermarket satisfaction include product variety,
price, and service delivery, while other facilities have a lesser impact.
2
Niroula & Gyawali (2022) aimed to identify the features of Patanjali products and
examine their impact on consumer satisfaction and purchasing decisions. Convenient
sampling was used to gather data from 300 respondents, which was analyzed using
correlation, regression, and descriptive statistics. The results indicate a positive
relationship between product features and satisfaction, suggesting that producers and
marketing managers should prioritize these features to cultivate loyal and satisfied
customers.
Manandhar (2021) discussed that service marketing focuses on various elements of the
service encounter, including the physical environment, employee interactions, core
service, and interactions with other customers. Research has developed a comprehensive
measure of other customer perception, considering its social impact, attraction theory, and
uniqueness theory. A study examined the effect of Other Customer Perception (OCP) and
Need for Uniqueness (NFU) on service experience and revisit intention. The findings
suggest that consumers' perceptions of other customers significantly influence their
service experience and revisit intention, emphasizing the importance of considering the
impact of other customers when designing restaurant settings.
Dhakal & Siwakoti (2020) examined consumer perception and satisfaction regarding
shopping at Bhat Bhateni Super Market in Biratnagar. The study utilizes a descriptive
research design with a sample size of 30 individuals selected through non-probability
convenience sampling. Primary data is collected using a questionnaire, and analysis is
done using MS Excel, presenting the results in tabular form. The findings indicate that
consumers perceive Bhat Bhateni Super Market as a convenient option in Biratnagar, with
satisfaction regarding product variety, pricing, quality, product arrangement, and
additional services.
Jha & Sharan (2020) explored consumer behavior and preferences in organized retail
settings such as malls, brand showrooms, and franchise stores. Consumers now view
shopping as an enjoyable experience due to the availability of diverse goods,
convenience, cleanliness, and additional amenities like entertainment and parking. The
research examines motivating factors for choosing organized retail over traditional shops,
analyzes triggers for purchasing, and identifies factors that enhance customer preference.
The findings can guide retail outlets in improving customer retention and enhancing
shopping experiences.
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Rajbhandari & Intravisit (2017) examines the impact of atmospheric attributes on

customers' buying intentions at Bhat Bhateni Supermarket in Kathmandu Valley, Nepal.
The study distributed 400 questionnaires to customers who had visited the supermarket at
least once. Multiple Linear Regression and Simple Linear Regression Analysis were used
to analyze the data and determine the relationship between dependent and independent
variables. The findings highlight the importance of atmospheric attributes in influencing
Nepalese consumers' buying intentions and suggest areas of improvement for marketers
in the supermarket industry. Factors such as the store's general interior, store layout,
interior display, and human variables were found to have an impact on customer
behavior, emphasizing the significance of atmospheric attributes for supermarket success.
Gnawali (2016) discovered Customer satisfaction plays a crucial role in fostering

customer loyalty, retention, positive word of mouth, employee satisfaction, and increased
profitability. It also helps prevent negative word of mouth and encourages valuable
customer feedback, benefiting the firm. Bhat-Bhateni, the oldest supermarket in Nepal,
needs to prioritize customer-focused marketing and innovation to stay competitive. The
research conducted on customer satisfaction at Bhat-Bhateni examines the overall
satisfaction level, focusing on dimensions such as location, facilities, product quality,
reliability, personnel service, method of payment, and the overall process. The study,
based on a literature review, employs descriptive analysis and a non-probability
convenience sampling method with a sample size of 100. The results indicate moderate
satisfaction among respondents, with the method of payment and location being the most
significant factors. Personnel service is found to be less significant, suggesting a need for
improvement in selection and training. Overall, the study suggests enhancing dimensions
moderately significant to customer satisfaction to better serve customers. While the study
is limited to two Bhat-Bhateni branches and has a descriptive nature, it can serve as a
reference for future analysis.
2.2 Conceptual framework
A study's entire structure is greatly influenced by the conceptual framework, which acts
as a road map for the investigation. It is built using a thorough analysis of the material
and literature already available, providing a solid framework for theoretical advancement.
It is crucial to carefully design and describe this conceptual framework because its major
goal is to help researchers generate theories that speak to particular issues and issues-of-
interest.
2
The conceptual framework can be thought of as a basic framework created around a

hypothesis. It chooses the variables that the investigation will evaluate. As a connecting
theory, the conceptual framework serves to link the different stages of the research
process, such as problem description, purpose, literature evaluation, technique, data
collection, and analysis. It serves as a road plan, maintaining coherence throughout the
empirical study. The conceptual framework can take on various shapes depending on the
particular research topic or problem being addressed because it is strongly linked to
empirical investigation. Investigating consumer satisfaction, which acts as the dependent
variable in this study, is the main goal. Product, price,
interpersonal interactions, practicality, physical attractiveness, and service
are among the independent variables taken into account. Assessing how these
independent variables affect the dependent variable, customer satisfaction, is the
objective.
This figure shows the relationship between selected independent variables (product,
price, personal interaction, convenience, physical appearance and service) and
dependent variable (customer satisfaction).
Independent Variables
Dependent Variable
Product
Price
Personal interaction
Customer Satisfaction
Convenience (CS)
Physical appearance
Service
Figure 2-1: Conceptual framework
2.3 Concluding remarks
Previous studies have examined the relationship between customer satisfaction and
various shopping factors, but the results have been mixed. This study aims to fill the
research gap by examining the impact of six independent variables (product, price,
personal interaction,
2
convenience, physical appearance, and service) on customer satisfaction in Bhatbhateni

Supermarkets Kathmandu valley.
The study will use a survey to collect data from a large sample of Bhatbhateni
Supermarkets Kathmandu valley customers. The data will be analyzed using statistical
methods to identify the factors that have the strongest impact on customer satisfaction.
The findings of this study will contribute to the existing literature by providing a better
understanding of the factors that influence customer satisfaction in Bhatbhateni
Supermarkets Kathmandu valley. The study will also be valuable for supermarket
managers, as it will help them to identify the areas where they can improve their services
in order to increase customer satisfaction.
2
CHAPTER III
RESEARCH METHODOLOGY
The research methodology establishes the overall plan and framework for the study,
outlining the sequential steps to be followed by the researcher to achieve the study's
objectives. It is essential to describe the methodology before presenting the data analysis
and interpretation to ensure that the conclusions drawn are clear and accurate. This
chapter provides an explanation of the methodology used in the study, including the
research design, research methods, sampling techniques, and the instruments employed
for data collection.
3.1 Research plan and design
This study uses both descriptive and causal comparative research designs to investigate
the impact of shopping factors on customer satisfaction in Bhatbhateni Supermarkets
Kathmandu valley.
The descriptive research design is used to gather factual information about the current
state of customer satisfaction in Bhatbhateni Supermarkets Kathmandu valley. This
includes collecting data on factors such as product quality, price, convenience, and
service. The data will be used to create a profile of customer satisfaction in Bhatbhateni
supermarkets.
The causal comparative research design is used to identify the causes of customer
satisfaction in Bhatbhateni supermarkets. This involves comparing the satisfaction levels
of customers who have different experiences of shopping in Bhatbhateni Supermarkets
Kathmandu valley. The data will be used to identify the factors that are most important in
determining customer satisfaction.
The combined use of descriptive and causal comparative research designs will provide a
comprehensive understanding of the factors that influence customer satisfaction in
Bhatbhateni supermarkets. The findings of this study will be valuable for supermarket
managers, as they will help them to improve their services and increase customer
satisfaction.
2
3.2 Description of the sample
This study used a survey to collect data from customers of Bhatbhateni Supermarkets
Kathmandu valley. The survey asked customers about their perceptions of shopping
factors and their impact on customer satisfaction.
The survey was administered to a sample of 191 customers. Convenience sampling was
used to select the sample. Convenience sampling is a non-probability sampling technique
that allows researchers to select participants based on their availability and suitability for
the study. Convenience sampling was used in this study because it was the most practical
way to reach the desired respondents within the time and financial constraints of the
study.
The survey was designed to gather information on a variety of factors that could influence
customer satisfaction in Bhatbhateni Supermarkets Kathmandu valley. These factors
included product quality, price, convenience, and service. The survey also asked
customers to rate their overall satisfaction with the supermarkets they visited.
The data collected from the survey will be used to analyze the factors that influence
customer satisfaction in Bhatbhateni Supermarkets Kathmandu valley. The findings of
this study will be valuable for supermarket managers, as they will help them to improve
their services and increase customer satisfaction.
3.3 Instrumentation and tools
The study used a structured questionnaire to collect data on shopping factors and
customer satisfaction. The questionnaire consisted of two parts:
The first part gathered demographic information about the respondents, such as gender,
marital status, age, education, and frequency of shopping.
The second part of the questionnaire asked respondents to rate their satisfaction with six
factors that could influence customer satisfaction in Bhatbhateni Supermarkets
Kathmandu valley: product quality, price, personal interaction, convenience, physical
appearance, and service.
The respondents rated their satisfaction with each factor on a 5-point Likert scale, where 5
represented strong satisfaction and 1 represented strong dissatisfaction. The levels of
satisfaction or dissatisfaction for each factor were used to measure the respondents'
perception of the given factor.
3
The research design aimed to understand the direction, magnitude, and nature of the
relationship between these different factors and customer satisfaction. To ensure data
reliability, Cronbach's alpha was calculated to test the internal consistency of the
questionnaire items.
3.4 Data collection procedure and time frame
To achieve the research objective, data was collected by distributing questionnaires to

customers who had visited the BBSM (Big Bazaar Supermarket). The questionnaire asked
customers to rate their level of satisfaction with BBSM on a 5-point Likert scale, ranging
from 1 (strongly satisfied) to 5 (strongly dissatisfied).
The questionnaire was distributed to a sample of customers who had visited the BBSM.
The sample was selected using convenience sampling, which means that the customers
were selected based on their availability and suitability for the study.
The questionnaire was also distributed online. A follow-up was conducted approximately
two weeks after the online form was provided to ensure that all respondents had
completed the questionnaire.
The questionnaire used in the study can be found in the appendix.
3.5 Method of analysis
The data collected from the questionnaires was analyzed using a variety of statistical
methods. The first step was to analyze the descriptive statistics of the data, such as the
mean, median, and standard deviation. This information was used to describe the sample
population and to identify any outliers.
The next step was to analyze the relationship between the different shopping factors and
customer satisfaction. This was done using Pearson's correlation analysis, which
measures the strength and direction of the relationship between two variables.
The final step was to use regression analysis to estimate the relationship between
customer satisfaction and the independent variables. Regression analysis is a statistical
technique that can be used to predict a dependent variable from a set of independent
variables.
3
The data analysis was conducted using the SPSS (Statistical Package for the Social
Sciences) software. SPSS is a powerful statistical software package that can be used to
analyze a variety of data types.
The results of the data analysis showed that there was a positive relationship between
customer satisfaction and the independent variables of product, price, personal
interaction, convenience, physical appearance, and service. This means that as the
independent variables increased, customer satisfaction also increased.
The results of the study also showed that the independent variable of product had the
strongest influence on customer satisfaction. This means that product quality is the most
important factor in determining customer satisfaction in Bhatbhateni Supermarkets
Kathmandu valley.
The study's findings provide valuable insights for supermarket managers. The findings
suggest that managers should focus on improving the quality of their products, the prices
of their products, the level of personal interaction with customers, the convenience of
their stores, the physical appearance of their stores, and the quality of their service. By
improving these factors, managers can increase customer satisfaction and improve the
profitability of their businesses.
3.6 The model specifications
The econometric models used in this study tries to explain the relationship between
shopping factors and customer satisfaction.
This study used least square regression model to test which of the hypothesis are
consistent with data. As each hypothesis in this study imply unique time-ordered and
signed relationship, regression model may help to indicate which of the hypotheses are
generally consistent or inconsistent with the data. In order to explain the effect shopping
factors on satisfaction of customer measured as customer satisfaction, following
regression model is used.
Model:
In this model, dependent variable is the CS indicated by customer satisfaction. The

independent variables are product, price, personal interaction, convenience, physical
appearance and service. The model is presented as:
3
CS= β0 + β1 PD+ β2 PR+ β3 PI+ β4 CO+ β5 PA + β6 SE + ei
Where,
CS= customer satisfaction
PD= Product
PR= Price
PI= Personal interaction
CO= Convenience
PA= Physical appearance
SE= Service
Β0 = Slope
β1, β2, β3, β4, β5, β6 = Coefficient of variables
3.7 Validity and reliability
Validity and reliability are two crucial aspects of research that ensure the accuracy and
trustworthiness of the findings. Validity refers to the extent to which a study accurately
measures what it intends to measure and provides truthful results. On the other hand,
reliability pertains to the consistency and stability of the measurement results and tools
used in the study. Let's delve deeper into these concepts and their significance.
Validity is essential because it ensures that the research accurately captures the intended
phenomenon or concept. It involves evaluating whether the measurement tools and
procedures effectively measure the constructs of interest. A valid measure accurately
represents what it is intended to measure, providing meaningful and reliable insights. To
establish validity, researchers need to consider the accuracy and appropriateness of the
measurement tools, the representativeness of the sample, and the reliability of the data
collection methods.
Reliability, on the other hand, focuses on the consistency and stability of the
measurement results over time and across different situations. A reliable measure
produces consistent results when applied repeatedly to the same sample or population. It
is essential because researchers need to be confident that the findings are not a result of
random variability or measurement errors. Reliability is assessed by examining the
consistency of the
3
measurements and determining the extent to which they provide a dependable

representation of the underlying constructs.
Cronbach's alpha is a widely used statistical tool to measure internal consistency or

reliability. It assesses the extent to which the items within a measurement instrument are
interrelated and consistently measure the same construct. In this study, Cronbach's alpha
was employed to examine the reliability and internal consistency among various factors
influencing customer satisfaction in Bhatbhateni Supermarkets Kathmandu valley. By
calculating the average intercorrelation among the items and considering the number of
test items, Cronbach's alpha provides a coefficient that represents the reliability of the
measurement instrument.
A Cronbach's alpha coefficient equal to or greater than 0.7 is generally considered

acceptable and indicative of good construct reliability. The obtained Cronbach's alpha
coefficients for the variables in this study, such as product, price, personal interaction,
convenience, physical appearance, security, and customer satisfaction, were all above 0.7,
demonstrating reliability at a 70 percent level. These coefficients suggest that the
measurement items within each variable are internally consistent and provide a reliable
representation of the underlying constructs.
Furthermore, the overall reliability and validity results of the study confirm that the
instrument used was both reliable and valid, with a Cronbach's alpha coefficient of 0.855.
Since this coefficient exceeds the threshold of 0.7, it indicates that 85.5 percent of the
data collected for the study can be considered reliable. These findings provide confidence
in the measurement instrument's ability to consistently capture and assess the factors
influencing customer satisfaction in Bhatbhateni Supermarkets Kathmandu valley.
By establishing the reliability and validity of the measurement instrument, researchers can
have greater confidence in the study's findings. Reliable and valid measures enhance the
credibility and robustness of the research, allowing for more accurate interpretations and
conclusions. They provide a solid foundation for making informed decisions and
recommendations based on the study's results.
In conclusion, validity and reliability are essential considerations in research. Validity

ensures that a study accurately measures what it intends to measure and provides truthful
results, while reliability assesses the consistency and stability of the measurement results
3
over time and across situations. Cronbach's alpha is a statistical tool commonly used to
measure internal consistency or reliability. The obtained Cronbach's alpha coefficients in
this study demonstrate that the measurement instrument used to assess the factors
influencing customer satisfaction in Bhatbhateni Supermarkets Kathmandu valley was
both reliable and valid. These findings enhance the confidence in the study's outcomes
and contribute to a better understanding of customer satisfaction in the context of
Bhatbhateni supermarkets.
Table 3-1: Coefficient of Cronbach’s alpha
Variables Cronbach’s Alpha based on Number of

standardized items items
Product 0.713 5
Price 0.744 5
Personal Interaction 0.809 5
Convenience 0.805 5
Physical Appearance 0.768 5
Service 0.753 5
Customer Satisfaction 0.781 5
Overall 0.855 35
3.8 Analysis plan
The study used a questionnaire to collect data on factors influencing customer satisfaction
in Bhatbhateni Supermarkets Kathmandu valley. The questionnaire included demographic
information about the respondents, such as gender, marital status, age, and frequency of
shopping. Additionally, a 5-point Likert scale was used to gauge the extent to which
respondents were satisfied or dissatisfied with the factors influencing customer
satisfaction in the supermarket.
3
The data was analyzed using Statistical Package for the Social Sciences (SPSS) software
and Microsoft software. The researchers used descriptive statistics, correlation analysis,
and statistical tests of significance to derive the results.
The descriptive statistics were used to determine mean values and provide insights into
the collected data. The correlation analysis was used to examine relationships between
variables. The statistical tests of significance were used to determine the significance of
the relationships between variables.
The researchers were able to analyze the empirical data and draw meaningful conclusions
regarding the relationship between shopping factors and customer satisfaction in
Bhatbhateni Supermarkets Kathmandu valley. The use of descriptive statistics, correlation
analysis, and statistical tests helped provide a comprehensive understanding of the
research findings.
3.9 Limitations
The study has several limitations that should be considered:
i. The study relies on primary data obtained from respondents to determine the
factors influencing customer satisfaction. This means that the reliability of the
study's conclusions depends on the accuracy of the information provided by the
respondents.
ii. The study only uses primary data and does not incorporate analysis of secondary
data. This means that the findings of the study are confined to the perceptions of
the customers and do not encompass broader data sources.
iii. The survey was conducted exclusively within the Kathmandu valley, limiting the
scope of the study to specific supermarkets in a relatively small area. This
restricted geographical focus may impact the generalizability of the findings.
iv. The study exclusively focuses on supermarkets, neglecting other types of shops in
the market. This selective approach may affect the analysis and conclusions
drawn, as it fails to consider the broader market context.
v. The study assumes a linear regression relationship between the dependent and
explanatory variables, excluding the possibility of non-linear relationships. This
assumption may oversimplify the complexity of the factors influencing customer
satisfaction.
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vi. The research may be subject to biases due to its implementation in an open market
setting, where various variables such as respondent mood and feelings may
influence the research outcomes.
vii. Understanding the precise and accurate buying motives of consumers, who are the
focal point of this market research, can be challenging and may introduce
uncertainties in the study's findings.
It is essential to recognize these limitations when interpreting the results of the study, as
they may impact the overall validity and generalizability of the findings.
3
CHAPTER IV
RESULTS AND DISCUSSION
This chapter provides systematic presentation and analysis of primary data. Different
statistical and regression model described in chapter three have been used for the study
purpose. This section is divided into three sections. The first section deals with the
presentation and analysis of primary data and presents the results of questionnaire survey.
The second section covers the analysis of regression model including correlation analysis.
The third section of this chapter deals with the concluding remarks associated on the basis
of findings from primary data analysis.
4.1 Presentation and analysis of data
This study is primarily based on primary data analysis which mainly deals with
qualitative aspects in terms of customer satisfaction in Bhatbhateni Supermarkets
Kathmandu valley. This section also reports the result of questionnaire survey conducted
among different groups of customers. Questionnaire survey was designed to understand
the views of respondents in relation to their satisfaction level with the factors like
product, price, personal interaction, convenience, services and physical appearance. The
respondents profile along with their personal characteristics and result of the survey are
presented in the following sections. The percentage, frequency, mean value, weighted
average mean value has been calculated to make the proper analysis of data.
4.2 Respondent’s Profile
The first section deals with the demographic analysis of the data that has been collected.
This analysis covers the frequency distribution of gender, age group; number of years
worked in the organization. They are briefly discussed below.
4.2.1 Gender
Gender is an important variable in expressing and giving the responses about the problem.
Hence, the variable gender was investigated for this study. Table 4-1 shows the sample on
the basis of gender. It shows that 109 were male and 82 were female among the
respondents.
3
Table 4-1: Distributions of Respondents according to Gender
Gender Frequency Percentage
Male 109 57.07%
Female 82 42.93%
Total 191 100%
42.93%
57.07%
Male Female
Figure 4-1: Distributions of Respondents according to Gender
Figure 4-1 shows the gender distribution of respondents. It shows that male respondents
were more than female respondents in the sample size of 191. The percentage of male and
female respondents was 57.07% and 42.93% respectively.
4.2.2 Age
Age of the respondents is one of the most important characteristics in understanding the
views about the particular problems. Table 4-2 shows the respondents on the basis of age.
The table shows that 123 were of 20-30 age, 37 were of 31-40 ages, 21 were of 41-50 and
10 were of above 50 age. The total respondents were 191.
3
Table 4-2: Distributions of Respondents according to age
Age Frequency Percentage
20-30 123 64.4%
31-40 37 19.37%
41-50 21 10.99%
51 & above 10 5.24%
Total 191 100%
5.24%
10.99%
19.37%
64.4%
20-30 31-40 41-50 51 & above
Figure 4-2: Distributions of Respondents According to Age
Figure 4-2 shows the distribution of respondents according their age. It shows that there is
the huge number of respondent of age group 20-30 compare to the respondent of other
age groups. The percentage of the respondent of the age group 20-30 is 64.40%, similarly
the respondents of age 31-40 are 19.37%, the respondent of age 41-50 are 10.99% and the
respondent of age 51 and above are only 5.24%. This shows that the huge number of
young respondent have taken part in this survey.
4.2.3 Education
Education is one of the most important characteristics that might affect the person’s
attitudes and the way of looking and understanding any particular social phenomena
therefore it becomes imperative to know the educational background of the respondents.
4
The qualification of the respondents is categorized into four groups as school level,
intermediate/Diploma, Graduate and post graduate which is illustrated in table 4-3.
Table 4-3: Distribution of Respondents According to their Education
Level Frequency Percentage

School level 7 3.66%
Intermediate/Diploma 37 19.13%
Graduate 95 49.74%
Post Graduate 52 27.23%
Total 191 100.00%
3.66%
27.23% 19.37%
49.74%
School level Intermediate/Diploma

Graduate Post Graduate
Figure 4-3: Distribution of Respondents According to their Education
The frequency distribution and percent composition of respondents’ qualification is

depicted in Figure 4-3. The result shows that most of the respondents are graduate
(49.74%), which is followed by Post Graduate (27.23%) and Intermediate (19.3%). And
school level (3.66%) in the total sample of 191 respondents.
4
4.2.4 Marital Status
Designation is one of the most important characteristics in understanding the views about
the particular problems. It has been categorized as married, unmarried and others. The
table 4-4 shows that married were 78, unmarried were 111 and others were 2 in number
among the total respondents of 191.
Table 4-4: Distribution of Respondents on the basis of Marital Status
Marital Status Frequency Percentage
Married 78 40.84%
Unmarried 111 58.12%
Others 2 1.05%
Total 191 100.00%
1.05%
40.84%
58.12%
Married Unmarried Others
Figure 4-4: Distribution of Respondents on the basis of Marital Status
Table 4-4 and Figure 4-4 show the marital status of respondents. It shows that among the
total 191 respondents 111 are Unmarried, which is 58.12%. The total percentage of the
respondent who is married is 40.84%. Two of the respondents is either divorcee or is
living in the living relationship that is why it is placed in the others categories.
4
4.2.5 Shopping Habit
The shopping habit or the frequency of shopping also plays a vital role in understanding
the views about the specific problem. The categorization has been done as once a month,
twice a month, thrice a month and more than three times a month. The table 4-5
represents that among 191 respondents, 78 respondents go once a month for shopping, 49
respondents go twice a month for shopping, 19 respondents go thrice a month and
remaining 45 respondents go more than three times a month for shopping.
Table 4-5: Distribution of Respondents on the basis of their shopping habits
Shopping Habits Frequency Percentage
Once a month 78 40.84%
Twice a month 49 25.65%
Thrice a month 19 9.95%
More than three times a month 45 23.56%
Total 191 100.00%
23.56 %
40.84 %
9.95 %
25.65 %
Once a month Twice a month

Thrice a month More than three times a month
Figure 4-5: Distribution of Respondents on the basis of their shopping habits
Figure 4-5 above present the shopping habits of the respondents. The huge number of the
respondents goes for shopping once a month (40.84%). Similarly, 49 respondents go for
4
the shopping twice a month and the number of respondents who goes for shopping more
than three times a month is same as well, which is 25.65% among the total respondents.
The 9.95% of the respondents have said that they go for shopping thrice a month. This
shows that the heterogeneous nature of the respondents is taken to make the research
more valid because the respondent habits for shopping are diverse.
4.3 Descriptive analysis
This section deals with the descriptive analysis of the data collected through the
questionnaires during the research process. Descriptive analysis incorporates calculation
of statistical measures such as mean, standard deviation, including maximum and
minimum values. These values help researcher to analyze the data with respect to
frequencies and aggregation relating to research questions and variables. For this purpose,
“Five Point Likert Scale” questions were asked to the respondents which scaled from 1
(strongly Dissatisfied), 2 (Slightly Satisfied), 3 (Neutral), 4 (Moderately Satisfied) to 5
(Strongly Satisfied). The descriptive analysis was presented in chart and table for the easy
understanding. The aggregate percentage of strongly satisfied and satisfied is done in
order to assess the degree of total percentage of satisfied and aggregate percentage of
dissatisfied and dissatisfied is done in order to assess the degree of total percentage of
dissatisfied.
4.3.1 Impact of Product, Price, Personal Interaction, Convenience, Services and

Physical Appearance on Customer Satisfaction
This section focuses on the customer satisfaction level of Bhatbhateni Supermarkets in

Kathmandu valley. The study gathered responses from customers regarding their
perceptions of the effect of various factors on customer satisfaction, including product,
price, personal interaction, convenience, services, and physical appearance.
Table 4-6 specifically presents the opinions of the respondents regarding the impact of the
product on customer satisfaction in Bhatbhateni Supermarkets in Kathmandu valley. The
table likely includes the responses and ratings provided by customers, indicating their
satisfaction levels based on the quality, features, and performance of the products offered
by the supermarket. This information helps in understanding the customers' perspectives
and evaluating the relationship between the product and customer satisfaction in the
context of Bhatbhateni Supermarkets.
4
Table 4-6: Customer satisfaction related to product
(This table shows the percentage, frequency and mean of the customer view regarding the impact of
product on customer satisfaction. The statement is measured in five point Likert scales: 1 as strongly
dissatisfaction, 2 as slightly satisfied, 3 as neutral, 4 as moderately satisfied and 5 as strongly satisfied.)
Statement 1 2 3 4 5 N Mean
Products available in F 10 21
the 75 63 22 191
3.35
Bhatbhateni supermarket % 5.2 11 39.3 33 11.5
are 100
durable. A% 16.2 39.3 44.5
The variety of the products are F 5 15 55 80 36 191
3.66
available in the Bhatbhateni % 2.6 7.9 28.8 41.9 18.8 100
supermarket. A% 10.5 28.8 60.7
F 9 29 49 56 48 191
Products with clear level and 3.55
% 4.7 15.2 25.7 29.3 25.1 100
origin are in Bhatbhateni
A% 19.9 25.7 54.4
supermarket.
F 8 30 53 62 38 191
You find the branded products in 3.48
% 4.2 15.7 27.7 32.5 19.9 100
the Bhatbhateni supermarket.
A% 19.9 27.7 52.4
F 7 31 57 61 35 191
3.45
% 3.7 16.2 29.8 31.9 18.3 100
You find the counterfeit products in 19.9 29.8 50.2
A%
Weighted Average Mean 3.5
Source: Field Survey 2023
The majority of the respondents (44.5 percent) believed that product in the Bhatbhateni
supermarket is satisfactory, whereas some respondents (16.2 percent) dissatisfied with the
product available in the Bhatbhateni supermarkets. The rest of the respondents were
indifferent on the statement. Likewise, majority of the respondents (60.7 percent) opined
that variety of product is available in the Bhatbhateni supermarket. However, others (10.5
percent) dissatisfied with the variety of the product and rests (28.8 percent) of the
respondents are indifferent on the statement.
The table indicates that majority of the respondents (54.4 percent) viewed that goods
available in the Bhatbhateni supermarkets are with clear level and origin. However, some
of the respondents (19.9 percent) do not believe that the goods available in the
Bhatbhateni supermarkets are with clear level and origin.
4
Regarding the responses on the statement “You find the branded goods in the Bhatbhateni
supermarket”, majority of the respondents (52.4 percent) satisfied, whereas some
respondents (19.9 percent) do not believed on the statement.
Also, the respondent reply on the statement "You find the counterfeit goods in the
Bhatbhateni supermarket." 50.2 percent agree with the statement whereas 19.9 percent are
disagreeing with the statement.
The mean of the level of product from a minimum value of 3.35 to the maximum value of
3.66. Among them, the most significant observations of the respondents regarding the
variety of product is good with mean value of 3.66 whereas the most insignificant
observation is product in the Bhatbhateni supermarket is durable given with mean value
of 3.62.
Weighted average mean value for impact of product is 3.50 which indicate that product is
the major factor which influence the satisfaction of the customer of Bhatbhateni
supermarkets Kathmandu valley.
Table 4-7 presents the opinions of respondents regarding the impact of price on customer
satisfaction.
The majority of the respondents (38.3 percent) believed that member card available is
dissatisfactory, whereas some respondents (37.2 percent) satisfied with the member card
available in the Bhatbhateni supermarkets. The rest of the respondents were indifferent on
the statement. Likewise, majority of the respondents (63.4 percent) opined that special
discounts on occasions is provided in the Bhatbhateni supermarket. However, others (16.2
percent) dissatisfied with the statement and rests (20.4 percent) of the respondents are
indifferent on the statement.
4
Table 4-7: Customer satisfaction related to price
(This table shows the percentage, frequency and mean of the customer view regarding the impact of price
on customer satisfaction. The statement is measured in five point Likert scales: 1 as strongly dissatisfaction,
2 as slightly satisfied, 3 as neutral, 4 as moderately satisfied and 5 as strongly satisfied.)
F 45 28 47 39 32 191
Membership card is available in % 2.92
23.6 14.7 24.6 20.4 16.8 100
BBSM.
A% 38.3 24.6 37.2
Bhatbhateni supermarket F 8 23 39 59 62 191
3.75
provides special discounts on % 4.2 12 20.4 30.9 32.5 100
occasions. A% 16.2 20.4 63.4
F 11 15 43 73 49 191
Price of Bhatbhateni supermarket % 3.7
5.8 7.9 22.5 38.2 25.7 100
is competitive.
A% 13.7 22.5 63.9
The actual price of the products F 49 65 42 21 14 191
2.4
in the Bhatbhateni supermarket % 25.7 34 22 11 7.3 100
are hidden. A% 59.7 22 18.3
F 64 55 33 28 11 191
2.3
The price in the Bhatbhateni % 33.5 28.8 17.3 14.7 5.8 100
supermarket made me to buy the 62.3 17.3 20.5
product. A%
The table indicates that majority of the respondents (63.9 percent) viewed that price of
Bhatbhateni supermarket is competitive. However, some of the respondents (13.7
percent) do not believe that price of Bhatbhateni supermarket is competitive.
Regarding the responses on the statement “The actual price of the products in the
Bhatbhateni supermarket are hidden”, majority of the respondents (59.7 percent)
dissatisfied, whereas some respondents (18.3 percent) believed on the statement.
Also, the respondent reply on the statement "The price in the Bhatbhateni supermarket
made me to buy the product" 62.3 percent dissatisfied with the statement whereas 20.5
percent are satisfied with the statement.
3.75. Among them, the most significant observations of the respondents regarding
Bhatbhateni supermarket provides special discounts on occasions with mean value of
3.75
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whereas the most insignificant observation is member card is available given with mean
value of 2.92.
Weighted average mean value for impact of price is 3.01 which indicate that price is the
factor which somehow influence the satisfaction of the customer of Bhatbhateni
Table 4-8 presents the opinions of respondents regarding the impact of personal
interaction on customer satisfaction.
Table 4-8: Customer satisfaction related to personal interaction
personal interaction on customer satisfaction. The statement is measured in five point Likert scales: 1 as
strongly dissatisfaction, 2 as slightly satisfied, 3 as neutral, 4 as moderately satisfied and 5 as strongly
satisfied.)
Staffs of Bhatbhateni F 16 27 65 48 35 191

3.3
supermarket have enough % 8.4 14.1 34 25.1 18.3 100
knowledge to answer your A% 22.5 34 43.4
questions.
F 9 36 45 64 37 191
Staffs response to your quires 3.44
% 4.7 18.8 23.6 33.5 19.4 100
quickly.
A% 23.5 23.6 52.9
F 9 26 56 67 33 191
Staff assistance during purchase is % 3.47
4.7 13.6 29.3 35.1 17.3 100
friendly.
A% 18.3 29.3 52.4
F 9 10 30 65 77 191
The billing system of 4
% 4.7 5.2 15.7 34 40.3 100
Bhatbhateni supermarket is
A% 9.9 15.7 74.3
correct,
F 81 55 21 25 9 191
2.09
% 42.4 28.8 11 13.1 4.7 100
The staff always deal with a
hospitality manner in BBSM. 71.2 11 17.8
A%
The majority of the respondents (43.4 percent) believed that staff have enough knowledge
to answer the questions as satisfactory, whereas some respondents (22.5 percent)
dissatisfied with that staff have enough knowledge to answer the questions. The rest of
the respondents were indifferent on the statement. Likewise, majority of the respondents
(52.9 percent) opined that staff response to the quires quickly in the Bhatbhateni
supermarket.
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However, others (23.5 percent) dissatisfied with the statement and rests (23.6 percent) of
the respondents are indifferent on the statement.
The table indicates that majority of the respondents (52.4 percent) viewed that staff
assistance during purchase is good. However, some of the respondents (18.3 percent) do
not believe that staff assistance during purchase is good.
Regarding the responses on the statement “The billing is correct”, majority of the
respondents (74.4 percent) are satisfied, whereas some respondents (9.9 percent) do not
believed on the statement.
Also, the respondent reply on the statement "The staff always deal with a hospitality
manner" 71.2 percent dissatisfied with the statement whereas 17.8 percent are satisfied
with the statement.
4.00. Among them, the most significant observations of the respondents regarding the
billing is correct with mean value of 4.00 whereas the most insignificant observation is
the billing is incorrect given with mean value of 2.09.
Weighted average mean value for impact of personal interaction is 3.26 which indicate
that personal interaction is the factor which somehow influence the satisfaction of the
customer of Bhatbhateni supermarkets Kathmandu valley.
Table 4-9 presents the opinions of respondents regarding the impact of convenience on
The majority of the respondents (59.6 percent) believed that store location is convenient
as satisfactory, whereas some respondents (18.3 percent) dissatisfied with that store
location is convenient. The rest of the respondents were indifferent on the statement.
Likewise, majority of the respondents (52.9 percent) opined that convenient and safe
parking facility is available. However, others (21.9 percent) dissatisfied with the
statement and rests (25.1 percent) of the respondents are indifferent on the statement.
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Table 4-9: Customer satisfaction related to convenience
convenience on customer satisfaction. The statement is measured in five point Likert scales: 1 as strongly
dissatisfaction, 2 as slightly satisfied, 3 as neutral, 4 as moderately satisfied and 5 as strongly satisfied.)
F 9 26 42 70 44 191
Bhatbhateni supermarket location 3.6
% 4.7 13.6 22 36.6 23 100
is convenient.
A% 18.3 22 59.6
F 19 23 48 52 49 191
Convenient and safe parking 3.47
% 9.9 12 25.1 27.2 25.7 100
facility is available in BBSM.
A% 21.9 25.1 52.9
F 16 19 22 55 79 191
Mode of payment is flexible in 3.85
% 8.4 9.9 11.5 28.8 41.4 100
Bhatbhateni Supermarket.
A% 18.3 11.5 70.2
F 27 42 51 39 32 191
Bhatbhateni supermarket has 3.04
% 14.1 22 26.7 20.4 16.8 100
good returns policies.
A% 36.1 26.7 37.2
F 15 25 43 58 50 191
3.54
Extra facilities such as washroom % 7.9 13.1 22.5 30.5 26.2 100
are easily accessible within A% 21 22.5 56.7
premises of Bhatbhateni.
The table indicates that majority of the respondents (70.2 percent) viewed that mode of
payment is flexible. However, some of the respondents (18.3 percent) do not believe that
mode of payment is flexible.
Regarding the responses on the statement “Bhatbhateni supermarket has good returns
policies”, majority of the rsespondents (37.2 percent) are satisfied, whereas some
respondents (36.1 percent) do not believed on the statement.
Also, the respondent reply on the statement "Extra facilities such as washroom are easily
accessible within premises" 56.7 percent dissatisfied with the statement whereas 21
percent are satisfied with the statement.
3.85. Among them, the most significant observations of the respondents regarding mode of
5
payment is flexible with mean value of 3.85 whereas the most insignificant observation is
Bhatbhateni supermarket has good returns policies given with mean value of 3.04.
Weighted average mean value for impact of convenience is 3.50 which indicate that
convenience is the factor which influence the satisfaction of the customer of Bhatbhateni
Table 4-10 presents the opinions of respondents regarding the impact of service on
The majority of the respondents (59.6 percent) believed that children play zone is
available as satisfactory, whereas some respondents (18.3 percent) dissatisfied with that
children play zone is available. The rest of the respondents were indifferent on the
statement. Likewise, majority of the respondents (52.9 percent) opined that Food courts
are easily accessible within premises. However, others (21.9 percent) dissatisfied with the
statement and rests (25.1 percent) of the respondents are indifferent on the statement.
The table indicates that majority of the respondents (70.2 percent) viewed that home
delivery of goods is available. However, some of the respondents (18.3 percent) do not
believe that mode of payment is flexible.
Regarding the responses on the statement “Security of Bhatbhateni supermarket is very

good”, majority of the respondents (37.2 percent) are satisfied, whereas some respondents
(36.1 percent) do not believed on the statement.
Also, the respondent reply on the statement "All the products needed are available in the
Bhatbhateni supermarket" 56.7 percent dissatisfied with the statement whereas 21 percent
are satisfied with the statement.
5
Table 4-10: Customer satisfaction related to service
(This table shows the percentage, frequency and mean of the customer view regarding the impact of service
on customer satisfaction. The statement is measured in five point Likert scales: 1 as strongly dissatisfaction,
2 as slightly satisfied, 3 as neutral, 4 as moderately satisfied and 5 as strongly satisfied.)
F 52 45 44 25 25 191
Children play zone is available in 2.61
% 27.2 23.6 23 13.1 13.1 100
Bhatbhateni.
A% 50.8 23 26.2
F 16 24 42 69 40 191
Food courts are easily 3.5
% 8.4 12.6 22 36.1 20.9 100
accessible within premises of
A% 21 22 57
BBSM.
F 28 37 59 27 40 191
Home delivery of goods is 3.07
% 14.7 19.4 30.9 14.1 20.9 100
available in BBSM.
A% 34.1 30.9 35
F 9 26 45 71 40 191
Security of Bhatbhateni 3.56
% 4.7 13.6 23.6 37.2 20.9 100
supermarket is very good.
A% 18.3 23.6 58.1
F 45 45 50 38 13 191
2.63
All the products needed are % 23.6 23.6 26.2 19.9 6.8 100
available in the Bhatbhateni 47.2 26.2 26.7
supermarket. A%
Security of Bhatbhateni supermarket is very good with mean value of 3.56 whereas the
most insignificant observation is children play zone is available given with mean value of
2.61.
service is the factor which influence the satisfaction of the customer of Bhatbhateni
Table 4.11 presents the opinions of respondents regarding the impact of physical
appearance on customer satisfaction.
5
Table 4-11: Customer satisfaction related to physical appearance
physical appearance on customer satisfaction. The statement is measured in five point Likert scales: 1 as
strongly dissatisfaction, 2 as slightly satisfied, 3 as neutral, 4 as moderately satisfied and 5 as strongly
satisfied.)
F 7 11 45 69 59 191
Cleanliness of Bhatbhateni 3.89
% 3.7 5.8 23.6 36.1 30.9 100
supermarket is good.
A% 9.5 23.6 67
F 5 25 52 63 46 191
Bhatbhateni super market is very 3.63
% 2.6 13.1 27.2 33 24.1 100
spacious (lot of space).
A% 15.7 27.2 57.1
F 41 46 50 40 40 191
Shop floor is cramped (not 3.37
% 21.5 24.1 26.2 20.9 7.3 100
having enough space or time).
A% 45.6 26.2 28.2
Layout facilitates of Bhatbhateni F 8 16 62 69 36 191
3.57
supermarkets to find out % 4.2 8.4 32.5 36.1 18.8 100
products easily. A% 12.6 32.5 54.9
F 27 42 55 40 27 191
3
% 14.1 22 28.8 20.9 14.1 100
Bhatbhateni supermarket has 36.1 28.8 35
relaxing benches.
A%
The majority of the respondents (67 percent) believed that cleanliness of store is good as
satisfactory, whereas some respondents (9.5 percent) dissatisfied with that cleanliness of
store is good. The rest of the respondents were indifferent on the statement. Likewise,
majority of the respondents (57.1 percent) opined that shop floor is very spacious.
However, others (15.7 percent) dissatisfied with the statement and rests (27.2 percent) of
the respondents are indifferent on the statement.
The table indicates that majority of the respondents (45.6 percent) viewed that shop floor
is cramped (not having enough space or time) as dissatisfactory. However, some of the
respondents (28.2 percent) believe that shop floor is cramped (not having enough space or
time).
Regarding the responses on the statement “Layout facilitates to easily find out products
need” majority of the respondents (54.9 percent) are satisfied, whereas some respondents
(12.6 percent) do not believed on the statement.
5
Also, the respondent reply on the statement "Bhatbhateni supermarket has relaxing
benches" 36.1 percent dissatisfied with the statement whereas 35 percent are satisfied
with the statement.
cleanliness of store is good with mean value of 3.89 whereas the most insignificant
observation is Bhatbhateni supermarket has relaxing benches given with mean value of
3.00.
convenience is the factor which influence the satisfaction of the customer of Bhatbhateni
Table 4-12 presents the opinions of respondents regarding customer satisfaction in

Bhatbhateni supermarkets Kathmandu valley.
The result shows 57.6 percent of respondents agreed they are satisfied with the
Bhatbhateni supermarket, whereas 12.6 percent of respondents’ disagreed on the
statement “I am satisfied with the Bhatbhateni supermarket”. Almost 61.7 percent of
respondents agreed that “I often buy the product from the Bhatbhateni supermarket”
whereas 16.7 percent of respondents disagreed that “I often buy the product from the
same Bhatbhateni supermarket”.
Likewise, majority of respondents (48.1 percent) agreed that “I used to talk about the
Bhatbhateni supermarket with my friends”, whereas 21.5 percent of respondents disagree
that “I used to talk about the Bhatbhateni supermarket with my friend”.
Similarly, majority of respondents (52.4 percent) agreed that “I am utilizing full benefits
of Bhatbhateni supermarket”, whereas 22.6 percent of respondents disagreed that “I am
utilizing full benefits of Bhatbhateni supermarket”.
Also, 55 percent of respondents agreed with the statement that "I will recommend my
friend to buy the product from the Bhatbhateni supermarket", whereas 16.3 percent
responses as they disagree with the statement "I will recommend my friend to buy the
product from the Bhatbhateni supermarket". Remaining 28.8 percent were neutral with
the statement.
5
Table 4-12: Customer satisfaction in Bhatbhateni supermarkets Kathmandu valley
(This table shows the percentage, frequency and mean of the customer satisfaction in Bhatbhateni
supermarkets Kathmandu valley. The statement is measured in five point Likert scales: 1 as strongly disagree,
2 as slightly agree, 3 as neutral, 4 as moderately agree and 5 as strongly agree.)
F 9 15 57 73 37 191
I am satisfied with the Bhatbhateni 3.6
% 4.7 7.9 29.8 38.2 19.4 100
supermarket.
A% 12.6 29.8 57.6
F 10 22 42 78 39 191
I often buy the product from the 3.6
% 5.2 11.5 22 40.8 20.4 100
Bhatbhateni supermarket.
A% 16.7 22 61.2
I used to talk about the F 11 30 58 57 35 191
3.4
Bhatbhateni supermarket with my % 5.8 15.7 30.4 29.8 18.3 100
friends. A% 21.5 30.4 48.1
F 11 32 48 66 34 191
I am utilizing full benefits of 3.42
% 5.8 16.8 25.1 34.6 17.8 100
A% 22.6 25.1 52.4
F 7 24 55 63 42 191
3.57
I will recommend my friend to buy % 3.7 12.6 28.8 33 22 100
the product from the Bhatbhateni A% 16.3 28.8 55
supermarket.
The mean of the level of customer satisfaction ranges from a minimum value of 3.40 to
the maximum value of 3.60. Among them, the most significant observations of the
respondents regarding the customer satisfaction are “I am satisfied with the Bhatbhateni
supermarket” and "I often buy the product from the Bhatbhateni supermarket" with mean
value of 3.60 whereas the most insignificant observation is “I am utilizing full benefits of
Bhatbhateni supermarket” with mean value of 3.42.
Weighted average mean value for the level of customer satisfaction is 3.52 which indicate
that level of customer satisfaction in terms selected dimensions is somehow good. Results
also indicate that significant variation is not existed among the Bhatbhateni supermarkets
in terms of customers’ satisfaction.
5
4.4 Correlation analysis
The results presented in Table 4-9 provide the descriptive statistics and Kendall's
correlation coefficients for the variables related to customer satisfaction. These
correlation coefficients indicate the strength and direction of the relationships between the
dependent and independent variables.
In Table 4-13, it is observed that there is a positive relationship between the product and
customer satisfaction. This means that a better product is associated with an increase in
customer satisfaction. Customers tend to be more satisfied when they perceive the
product to be of higher quality.
Furthermore, the study reveals a positive relationship between price and customer
satisfaction. This implies that the price of the product in the supermarket affects customer
satisfaction, with lower prices often leading to higher satisfaction levels. The results also
indicate a positive relationship between personal interaction and customer satisfaction.
This suggests that when customers have positive interactions with the supermarket staff
or receive personalized attention, it enhances their satisfaction levels.
Moreover, the correlation matrix shows a positive relationship between convenience and
customer satisfaction. This indicates that if customers find the supermarket convenient in
terms of location, parking, layout, and other factors, it contributes to higher levels of
Additionally, the study demonstrates a positive relationship between the physical
appearance of the supermarket and customer satisfaction. When the products are clearly
displayed, the store is well-organized, and the overall physical environment is pleasing, it
leads to increased customer satisfaction.
Lastly, the correlation matrix reveals a positive relationship between service quality and
customer satisfaction. This suggests that when customers perceive the supermarket's
service to be of higher quality, it contributes to their overall satisfaction.
In summary, the findings suggest that several factors are positively associated with
customer satisfaction, including product quality, price, personal interaction, convenience,
physical appearance, and service quality. Understanding and managing these factors can
help businesses improve customer satisfaction levels and enhance the overall customer
experience in the supermarket setting.
5
Table 4-13: Kendall’s Tau correlation coefficients matrix for the dependent and
independent variables for Bhatbhateni Supermarkets Kathmandu valley
The table shows the Kendall’s correlation coefficients between dependent variables and independent
variable. Dependent variable is CS (customer satisfaction) and independent variables are PD (product), PR
(price), PI (personal interaction), CO (convenience), PA (physical appearance) and SE (service).
Variables CS PD PR PI CO PA SE
CS 1
PD 0.437** 1
PR 0.412** 0.331** 1
PI 0.625** 0.395** 0.535** 1
CO 0.410** 0.395** 0.216** 0.441** 1
PA 0.598** 0.397** 0.459** 0.655** 0.602** 1
SE 0.583** 0.458** 0.312** 0.616** 0.542** 0.475** 1
Notes: The asterisk sign (**) indicates that the results are significant at 1 percent level
(two tailed).
4.5 Regression analysis
This section basically deals with regression results from various specifications of the
model to examine the estimated relationship of customer satisfaction with product, price,
personal interaction, convenience, physical appearance and service within their
supermarket.
The results are based on 191 observations from Bhatbhateni supermarket kathmandu valley by using linear
regression model. The model is CS= β0 + β1 PD + β2 PR + β3 PI+ β4 CO+ β5 PA + β6 SE + ei where Dependent
variable is CS (customer satisfaction) and independent variables are PD (product), PR (price), PI
(personal interaction), CO (convenience), PA (physical appearance) and SE (service).
Regression coefficients of
Mod Intercep Adj F-
2
SEE
el t .R value
PD PR PI CO PA SE
2.569 0.384
1 0.18 0.44 47.46

(11.411)* (6.890)*
* *
5
2.606 0.362
2 0.16 0.45 41.06

(11.037)* (6.408)*
* *
0.615
1.524
128.6
3 0.38 0.38
(11.342)* 4
(6.651)**
*
2.767 0.331
4 0.16 0.45 40.45

(13.011)* (6.361)*
* *
0.622
1.582
111.8
5 0.35 0.39
(10.576)* 4
(6.60)**
*
0.553
1.833 103.2
6 0.34 0.40
(10.160)* 2
(8.134)** *
0.296 0.263
1.827
7 0.26 0.42 37.21
(5.278)* (4.689)*
(6.859)** * *
0.189
1.016 0.064 0.493
8 0.43 0.37 51.47
(3.671)*
(3.946)** (1.114) (7.648)**
*
0.894 0.161 0.072 0.450 0.095

9 0.46 0.37 40.06
(3.393)** (3.023)* (1.285) (6.627)** (1.926)
0.713 0.151 0.034 0.345 0.011 0.285

10 0.46 0.36 36.32
(2.729) (2.910)* (0.613) (4.765)** 0.197 (3.496)**
0.514 0.104 0.042 0.216 0.061 0.310 0.262

0.34
11 0.50 35.09
7
(2.00) (2.034) (0.790) (2.789) (1.093) (3.929)** (3.940)**
Notes:
i. Figures in parenthesis are t-values
ii. The asterisk signs (**) and (*) indicate that the results are significant at 1
percent and 5 percent level respectively.
iii. Customer satisfaction is the dependent variable.
5
Table 4-10 shows that the beta coefficients for product are positive with customer
satisfaction. It indicates that product has a positive impact on customer satisfaction. This
finding is consistent with the findings of Fornell (1992). Likewise, the result also shows
that the beta coefficients for price are positive with customer satisfaction. It reveals that
price has a positive impact on customer satisfaction. This finding is similar to any of the
findings of Wen-ShinnLow et al. (2013). Similarly, the beta coefficients for personal
interaction are positive with customer satisfaction. It indicates that there is a positive
impact of personal interaction on customer satisfaction. This finding is consistent with the
findings of Wen-ShinnLow et al. (2013).
The result also reveals that the beta coefficients for convenience are positive with
customer satisfaction. It reveals that convenience to customer have a positive impact on
customer satisfaction. This finding is similar with the findings of Nguyễn Thị Thu
Thương (2016). Likewise, the positive beta coefficients of physical appearance has a
positive impact on customer satisfaction. This finding is consistent with the findings of
Parasuraman et al. (1988). Also, the result reveals that the beta coefficients for service are
positive with customer satisfaction. It reveals that service provided to customer have a
positive impact on customer satisfaction. This finding is similar with the findings of Jenet
Manyi Agbor (2011).
4.6 Major Findings
This study has mainly focused on impact of shopping factors on customer satisfaction of
the Bhatbhateni supermarket kathmandu valley. This study has used different factors like:
product, price, personal interaction, convenience, physical appearance and service. The
dependent variable is customer satisfaction. The result documented in this study is based
on the supermarket existed in Kathmandu Valley.
Based on the analysis of data, the major findings of this study are summarized as under:
1. The majority of the respondents consist of males (57.07 %), while the remaining
respondents are females (42.97 %).
2. The largest percentage of respondents falls within the age group of 20-30 years
(64.40 percent), followed by the age groups of 31-40 years (19.37 %), 41-50 years
(10.99 %), and above 51 years (5.24 %).
5
3. Among the total respondents, the majority (95 respondents) accounting for
49.74% of the total, hold bachelor's degrees. This is followed by 52 respondents
(27.23 % of the total) who hold post-graduate degrees. Only 7 respondents (3.66
%) have a school-level qualification, and 37 respondents (19.13 %) have an
intermediate qualification.
4. Among the total respondents, the majority (111 respondents) accounting for
58.12% of the total, unmarried. This is followed by 78 respondents (40.84 % of
the total) who are married. Only 2 respondents (1.05 %) are of other category i.e.
may be divorced, never married etc.
5. Most respondents (78) have a shopping frequency of once a month, which
accounts for 40.84 % of the total respondents. Additionally, 49 respondents (25.65
%) have a shopping frequency of twice a month. Similarly, 19 respondents (9.95
%) have a shopping frequency of thrice a month and 45 respondents (23.56 %)
have a shopping frequency of more than thrice a month.
6. The weighted average mean for the product is 3.50, indicating that the product
offerings in Bhatbhateni Supermarkets Kathmandu valley have been executed
properly. This suggests that customers are generally satisfied with the product
quality, leading to significant effects on customer satisfaction.
7. The weighted average mean for the price is 3.01, indicating that the pricing in
Bhatbhateni Supermarkets Kathmandu valley is satisfactory. Customers are
generally satisfied with the prices offered by the supermarkets.
8. The weighted average mean for personal interaction is 3.26, indicating that the
personal interaction in Bhatbhateni Supermarkets Kathmandu valley has been
implemented satisfactorily. This suggests that customers perceive the personal
interaction in the supermarkets to be satisfactory.
9. The weighted average mean for convenience is 3.50, indicating that convenience
in Bhatbhateni Supermarkets Kathmandu valley has been well-performed. Thus, it
can be concluded that the supermarket practices are convenient and customers are
satisfied with the convenience provided.
10. The weighted average mean for physical appearance is 3.49, indicating that the
physical appearance of Bhatbhateni Supermarkets Kathmandu valley has been
executed properly. Customers are satisfied with the overall appearance of the
supermarkets.
6
11. The weighted average mean for service is 3.07, indicating that the service
provided in Bhatbhateni Supermarkets Kathmandu valley is satisfactory.
Customers are generally satisfied with the service they receive.
12. The weighted average mean for customer satisfaction is 3.52, indicating that
customer satisfaction towards supermarkets in Nepal is relatively high. Customers
perceive their shopping experience positively and are satisfied with the
supermarkets.
13. The correlation analysis results demonstrate a positive relationship between
product, price, and personal interaction with customer satisfaction.
14. The correlation analysis results also reveal a positive relationship between
convenience, physical appearance, and service with customer satisfaction.
15. The regression analysis results indicate that the beta coefficients for the product
are positively associated with customer satisfaction. This suggests that the product
has a positive impact on customer satisfaction.
16. Similarly, the beta coefficients for price are positively associated with customer
satisfaction, indicating that price also has a positive impact on customer
satisfaction.
17. Likewise, the beta coefficients for personal interaction are positively associated
with customer satisfaction, indicating a positive impact of personal interaction on
18. The results also reveal that the beta coefficients for convenience are positively
associated with customer satisfaction, indicating that convenience has a positive
impact on customer satisfaction.
19. Similarly, the positive beta coefficients for physical appearance indicate that
better physical appearance has a positive impact on customer satisfaction.
20. Additionally, the results indicate that the beta coefficients for service are
positively associated with customer satisfaction, indicating that service has a
positive impact on customer satisfaction.
21. Among all the independent variables, price, personal interaction, and service are
identified as the major determinants of customer satisfaction.
6
CHAPTER V
SUMMARY AND CONCLUSION
This chapter deals with the brief summary of the entire study. It also highlights the major
finding of the study. In addition, the major conclusions are discussed in separate section
of this chapter. Likewise, recommendations regarding the study are also presented in
separate section of this chapter. Lastly, the chapter ends with the discussion of scope for
the future study in the same field.
5.1 Summary
Moreover, convenience and customer satisfaction are also positively correlated. When
customers find it easy and convenient to shop at a supermarket, they are more likely to be
satisfied with their overall experience. Similarly, the study revealed a positive
relationship between physical appearance and customer satisfaction. Supermarkets that
prioritize maintaining a clean, visually appealing store environment are more likely to
leave a positive impression on customers.
Service quality was another important factor identified in the study. Customers who
received attentive, responsive, and reliable service were more likely to be satisfied. This
highlights the significance of training and empowering employees to provide excellent
customer service. Businesses should invest in equipping their staff with the necessary
knowledge, skills, and attitudes to interact effectively with customers.
The findings of this study have important implications for the supermarket industry in
Nepal. First and foremost, businesses should prioritize customer satisfaction by focusing
on the identified factors. Supermarkets should strive to offer competitive prices while
ensuring the quality of their products. Additionally, providing excellent personal
interaction through attentive and friendly staff members can significantly enhance
Convenience is another key area that supermarkets should address. By optimizing store
layouts, offering efficient checkout processes, and providing ample parking or delivery
options, supermarkets can make the shopping experience more convenient for customers.
Furthermore, attention should be given to the physical appearance of the supermarket,
ensuring cleanliness, organization, and an appealing ambiance.
6
Service quality should be a top priority for supermarkets. This involves not only training
staff members to provide excellent customer service but also ensuring that they have the
necessary tools and resources to do so. Regular evaluation and monitoring of service
standards can help identify areas for improvement and ensure consistent customer
satisfaction.
While this study focused on supermarkets, there is potential for further research to
explore the impact of shopping factors on customer satisfaction in other types of markets
such as department stores, grocery shops, and local shops. By including a wider range of
markets, a more comprehensive understanding of internal marketing and customer
satisfaction can be achieved.
Additionally, future studies could consider expanding the factors examined beyond the
six dimensions identified in this study. Factors such as reliability, assurance, and other
variables related to service quality could be incorporated to gain a more holistic view of
the factors influencing customer satisfaction.
The study's reliance on primary data suggests that there is an opportunity for future
research to explore the use of secondary data for more convenience and potentially
different perspectives. By combining primary and secondary data, researchers can gain a
more comprehensive understanding of customer satisfaction in the supermarket industry.
Furthermore, the limited sample size of this study indicates the need for larger sample
sizes in future research. By increasing the number of participants, researchers can obtain
more reliable and representative results, leading to a deeper understanding of customer
satisfaction in Bhatbhateni Supermarkets Kathmandu valley.
In conclusion, customer satisfaction is of utmost importance in today's business

environment. Understanding the factors that influence customer satisfaction is essential
for businesses to thrive and remain competitive. The findings of this study highlight the
significance of product, price, personal interaction, convenience, physical appearance,
and service in shaping customer satisfaction in Bhatbhateni Supermarkets Kathmandu
valley. By addressing these factors and continuously striving to improve the customer
experience, supermarkets can enhance customer satisfaction, build customer loyalty, and
achieve long- term success.
6
5.2 Conclusion
The study indicates that price, product, and personal interaction have a positive influence
on customer satisfaction. Additionally, convenience, physical appearance, and service
also contribute positively to customer satisfaction. The findings emphasize the
significance of service quality and convenience in shaping customer satisfaction.
In conclusion, the study highlights that competitive pricing and effective product
visibility play a crucial role in influencing customers in Bhatbhateni Supermarkets
Kathmandu valley. Moreover, the study underscores that the personal interaction between
employees and customers, as well as the convenience customers experience in finding
products, are the most influential factors in determining customer satisfaction within
supermarkets.
5.3 Implication
The study found that six dimensions of supermarkets, namely product quality, price,
convenience, services, store ambiance, and interpersonal interaction, have a positive
impact on customer satisfaction. The study provides valuable insights for stakeholders
interested in understanding the factors that contribute to customer satisfaction.Therefore,
supermarkets can enhance customer satisfaction by focusing on these factors.
i. Supermarkets should place greater emphasis on pricing strategies to ensure that

their prices are competitive and meet the needs of their customers.
ii. Supermarkets should prioritize product quality to ensure that their products are of
high quality and meet the expectations of their customers.
iii. Supermarkets should focus on fostering better communication and interaction
with customers to create a more positive and memorable shopping experience.
iv. Supermarkets should prioritize providing convenient facilities and services that
meet the needs and preferences of their customers.
v. Supermarkets should pay attention to the visual appeal and presentation of their
products to create a more attractive and inviting shopping environment.
vi. Supermarkets should prioritize improving the quality of services provided to
customers to ensure that they are satisfied with their shopping experience.
6
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APPENDIX
Factors Affecting Customer Satisfaction in Bhatbhateni Supermarket

Kathmandu Valley.
Section A: Demographical Factor

1. Name (Optional)……………………….
2. Your Gender: Male Female Other
3. Marital Status: Married Unmarried Divorced
4. Please tick the appropriate options below:
Age Education Frequency of your shopping
20-30 SLC Level Once a month
31-40 10+2 Level Twice a month
41-50 Bachelor Level Thrice a month
51and above Master Level More than three times a

month
Section B: Factors that influence Customer satisfaction in Bhatbhateni supermarkets

Kathmandu valley
Please TICK [√] one number per line to indicate the extent to which you are satisfied or not
satisfied with the following statements.
S.N. Product 1 2 3 4 5
1 Products available in the

Bhatbhateni supermarket are
durable.
2 The variety of the product are

available in Bhatbhateni
supermarkets.
8
3 Product with clear label and

origin are in Bhatbhateni
supermarket.
4 You find the branded products in

5 You find the counterfeit product
in the Bhatbhateni supermarket.
S.N. Price 1 2 3 4 5
1 Membership card is available in

BBSM.
2 Bhatbhateni supermarket
provides special discounts on
occasions.
3 Price of Bhatbhateni
supermarket is competitive.
4 The actual price of the products
in the Bhatbhateni supermarket
are hidden.
5 The price of the product in the

Bhatbhateni supermarket made
me to buy the product.
S.N. Personal Interaction 1 2 3 4 5
1 Staffs of BBSM have enough

knowledge to answer your
questions.
2 Staff response to your quires
quickly.
3 Staff assistance during purchase

is friendly.
4 The billing system of
bhatbhateni supermarket is
correct.
8
5 The staff always deals with a

hospitality manner in BBSM.
S.N. Convenience 1 2 3 4 5
1 Bhatbhateni supermarket
location is convenient.
2 Convenient and safe parking

facility is available in BBSM.
3 Mode of payment is flexible in
Bhatbhateni Supermarket,
4 Bhatbhateni supermarket has
good returns policies.
5 Extra facilities such as
washroom are easily accessible
within premises of BBSMs.
S.N. Service 1 2 3 4 5
1 Children play zone is available in

BBSM.
2 Food courts are easily accessible

within premises of BBSM.
3 Home Delivery of goods is

available in BBSM.
4 Security of the Bhatbhateni

supermarket is very good.
5 All the products needed are

available in the Bhatbhateni
supermarket.
8
S.N. Physical Appearance 1 2 3 4 5
1 Cleanliness of the Bhatbhateni

store is good.
2 Shop floor is very spacious (lot

of space).
3 Shop floor is cramped (not
having enough space or time).
4 BBSM Layout facilitates to find
out the products easily.
5 Bhatbhateni supermarket has
relaxing benches.
S.N. Customer Satisfaction 1 2 3 4 5
1 I am satisfied with the

2 I often buy the products from the

same Bhatbhateni supermarket.
3 I used to talk about the

Bhatbhateni supermarket with
my friends.
4 I am utilizing full benefits of the

5 I will recommend my friend to

buy the products from the
THANK YOU

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FACTORS AFFECTING CUSTOMER SATISFACTION IN

BHATBHATENI SUPERMARKET KATHMANDU VALLEY

A Dissertation submitted to the Office of the Dean, Faculty of

Roll No: 16101 / 19

Registration No: 7-2-177-1-2014

Triton International College

Mr. Deep Narayan Pathak

(Head of Research Department) Dissertation Submitted Date

We have examined the dissertation entitled Factors Affecting Customer Satisfaction in

Mr. Deep Narayan Pathak

Head of Research Department

The study titled " Factors Affecting Customer Satisfaction in Bhatbhateni

1.1 General background........................................................................................1

LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK..................................14

2.1 Review of literature.......................................................................................14

2.1.2 Review of recent literature...........................................................................18

2.1.3 Review of Nepalese literature......................................................................21

2.2 Conceptual framework..................................................................................25

3.1 Research plan and design..............................................................................28

RESULTS AND DISCUSSION........................................................................................37

4.1 Presentation and analysis of data..................................................................37

4.2.4 Marital Status...............................................................................................41

4.2.5 Shopping Habit.............................................................................................42

4.3 Descriptive analysis.......................................................................................43

4.4 Correlation analysis.......................................................................................55

BBSM BhatBhateni SuperMarket

SPSS Statistical Package for the Social Sciences

In the highly competitive supermarket industry, attracting and retaining customers is

Overall, this research provides valuable insights for supermarket management to

Traditionally, companies have relied only on differentiation of products and services to

The emergence of Super Stores as a novel concept in Nepal is gaining traction,

Nowadays a consumer can choose of a large variety of supermarkets and switching a

1.2 Statement of the problem

Product quality plays a critical role in determining customer satisfaction, influenced by

organizations to maintain smooth operations, emphasizing the importance of prioritizing

In this context, satisfaction refers to a supermarket meeting customer expectations

Customer satisfaction is a critical concern for businesses in diverse industries, aligning

In today's fiercely competitive business landscape, organizations must prioritize customer

i. What are customers' perceptions on Product, Price, Personal interaction,

1.3 Objective of the study

i. To Analyze the perception of consumers on the level of Product, Price, Personal

1.4 Significance of the study

1.5 Operational definitions and assumptions

Fornell (1992) found that customer satisfaction is influenced by product-related factors.

Hansemark et al. (2004) define satisfaction as an overall attitude towards a product

Based on these insights, the study formulates the following hypotheses:

H1: There is a positive relationship of product with customer satisfaction.

Based on these findings, the study formulates the following hypotheses:

H2: There is a positive relationship of price with customer satisfaction.

In addition to interactions with staff members, interactions between customers themselves

In short, interpersonal interaction is an important factor that can influence customer

Based on these findings, the study formulates the following hypotheses:

H3: There is a positive relationship of personal interaction with customer satisfaction.

Based on these findings, the study formulates the following hypotheses:

H4: There is a positive relationship of convenience with customer satisfaction.

Based on these findings, the study formulates the following hypotheses:

H5: There is a positive relationship of physical appearance with customer satisfaction.

In summary, customer satisfaction is important in service delivery and supermarkets can

Based on these findings, the study formulates the following hypotheses: