International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Business Model and Customer Satisfaction in Retail: An Analysis of D-Mart's Retail Strategy in Ongole, Andhra Pradesh

Author(s) M. Jayasri, Prof. N. Udaya Bhaskar
Country India
Abstract Organized retail in India has expanded rapidly over the past two decades, transforming shopping behaviour in both metropolitan and Tier-II and Tier-III towns. This paper examines the business model of D-Mart, operated by Avenue Supermarts Limited (ASL), with specific reference to its outlet in Ongole, the headquarters town of Prakasam district, Andhra Pradesh. The study analyses D-Mart's Everyday Low Cost–Everyday Low Price (EDLC-EDLP) strategy, its asset-ownership and cluster-based expansion model, and the extent to which these choices translate into customer value and satisfaction in a Tier-II retail environment. Using verifiable secondary data drawn from company disclosures, stock-exchange filings, industry reports of the India Brand Equity Foundation, and Census of India records for Prakasam district, the paper situates Ongole's retail transition within the wider national organized-retail growth trajectory. The paper further applies the Retail Service Quality Scale (RSQS) framework to structure a conceptual assessment of the dimensions of customer satisfaction relevant to a value-format supermarket. Findings indicate that D-Mart's cost-leadership model is well-suited to price-sensitive Tier-II markets such as Ongole. However, service-quality dimensions such as personal interaction and store ambience require closer attention as competition intensifies.
Keywords D-Mart; Avenue Supermarts; retail business model; customer satisfaction; EDLC-EDLP; organized retail; Ongole; Prakasam district; Retail Service Quality Scale (RSQS); Andhra Pradesh
Published In Volume 8, Issue 4, July-August 2026
Published On 2026-07-26
DOI https://doi.org/10.36948/ijfmr.2026.v08i04.84662
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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