Redefining Retailer's Satisfaction Index: A Case of FMCG Market in India

Abstract

Globalisation and maximum profit fetching attitude, drive many companies to nourish their retailers/distributors. Retailers/Distributors satisfaction is the buzzword of late 1990s, keeping in mind the importance of service as a major marketing tool, the decisions resulting retailers/distributors enjoying a healthy share in any company's strategic decisions. Such decisions retrieve further importance because of non-predictability and uncertainty in working environment. In this paper researchers propose a model based on American Customer Satisfaction Index, ACSI, to evaluate the satisfaction level of Retailers/Distributors. Data has been collected from 3 Distributors and 180 Retailers working with Nestle India Limited. One of the most important concepts of marketing is satisfaction and for the past few decades has been attracting interests for retailers as well.The model proposed for Nestle Retailer Satisfaction Index viewed as a cause and model based on process, retailer service and information and measured by multiple dimensions. This study utilizes the data for 180 retailers only which makes it difficult to generalize the results on the bigger level. Therefore, researchers are encouraged to cover more retailers’ further.Retailers need to be well informed about various products/services and they should be guided well in advance about the new launches so that they can pass out this information to customers. Retailer satisfaction index highlights certain areas for managers to work upon. Managerial implications in implementing activities and certain schemes like sales promotion, gifts, exchange offers may provide good future prospects.