makerere university college of education and...

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MAKERERE UNIVERSITY

COLLEGE OF EDUCATION AND EXTERNAL STUDIES

School of Distance & Lifelong learning

Department of Open & Distance Learning

PRODUCT QUALITY AND CUSTOMER SATISFACTION

A CASE OF CITY TYRES

BY

SEMAKULA GEORGE

07/U/5286/EXT

MR. TIBAINGANA ANTHONY

(SUPERVISOR)

A DRAFT RESEARCH REPORT SUBMITTED TO MAKERERE UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

AWARD OF A BACHELOR OF COMMERCE DEGREE.

JUNE 2011

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DECLARATION

I, Semakula George do hereby declare that “Product quality and customer satisfaction” is

entirely my own original work except where acknowledged, and that it has not been

submitted before to any other University or Institution of higher learning for the award of a

degree.

Signed:……………………………… Date:……………………………

SEMAKULA GEORGE

(Researcher)

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APPROVAL

This research report has been submitted for examination with my approval as the

candidate’s University supervisor(s).

Signed:…………………………………… Date:……………………….

Mr. Tibaingana Anthony

(Supervisor)

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DEDICATION

This piece of work is dedicated to my lovely mother Ms Semakula Aida and my dear wife

Ms Ndenye Annet.

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ACRONYMS

E.g. For example

Abb Abbreviations

i.e. That is

& and

0% Percentage

No. Number

Ed Edition

Etal and others

Pp. Page number

Vol Volume

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ACKNOWLEDGEMENT

I extend my sincere gratitude to the love and support given to me by my mother, my dear

wife Ndenye Annet, my brother Kinene Daniel and all the well wishers. I proudly stay with

you, I have managed to reach this far. May the good Lord reward you abundantly.

Special thanks to my Supervisor, Mr. Tibaingana Anthony, I appreciate the intellectual

guidance, advice and good care accorded to me and correcting me throughout the

compilation of this work. I also thank the entire staff at Makerere University Faculty of

Long Distance, Economics and Management who molded me into what I am today, I have

this to say “thank you so much.”

The staff, management and consumers of City tyres, thank you for the response to my

questionnaires.

I cannot forget my colleagues at campus Freeman, Kasule Francis, Nabachwa Madina,

Nakawunde Sarah and Jim thank you for great discussions.

I appreciate the untiring efforts of Ms Monica for typesetting this work.

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TABLE OF CONTENTS

Page

Declaration …………………………………………………………………….. i

Approval …………………………………………………………………….. ii

Dedication …………………………………………………………………….. iii

Acronyms …………………………………………………………………….. iv

Acknowledgement …………………………………………………………….. v

Table of contents …………………………………………………………….. vi

List of Tables …………………………………………………………….. vii

List of Figures …………………………………………………………….. viii

Abstract …………………………………………………………….. ix

CHAPTER ONE

1.1 Background of the study………………………………………………….. 1

1.2 Statement of the study…………………………………………………….. 3

1.3 Purpose of the study……………………………………………………….. 3

1.4 Objectives of study………………………………………………………… 4

1.5 Research questions to guide study………………………………………… 4

1.6 Scope of study…………………………………………………………….. 4

1.6.1 Geographical scope………………………………………………………... 4

1.6.2 Conceptual scope………………………………………………………….. 4

1.6.3 Time scope………………………………………………………………… 4

1.7 Significance of the study………………………………………………….. 5

CHAPTER TWO

Introduction …………………………………………………………………….. 6

2.1 Product …………………………………………………………….. 6

2.1.1 Product quality…………………………………………………………….. 6

2.2 Attributes of product quality……………………………………………… 7

2.2.1 Performance …………………………………………………………….. 8

2.2.2 Conformance …………………………………………………………….. 9

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2.2.3 Features …………………………………………………………….. 9

2.2.4 Serviceability …………………………………………………………….. 10

2.2.5 Reliability …………………………………………………………….. 11

2.2.6 Durability …………………………………………………………….. 12

2.3 Customer satisfaction……………………………………………………… 13

2.4 Attributes of customer satisfaction………………………………………… 14

2.4.1 After sales services …………………………………………………….. 14

2.4.2 Technical information …………………………………………………….. 14

2.4.3 Delivery period ……………………………………………………. 15

2.4.4 Quality and flexibility……………………………………………………. 15

2.4.5 Packing/logistics ……………………………………………………. 15

2.4.6 Sales promotion ……………………………………………………. 16

2.4.7 Intensity of cooperation…………………………………………………… 16

2.5 Relationship between product quality and customer satisfaction….…….. 17

CHAPTER THREE: METHODOLOGY

Introduction ……………………………………………………………………. 19

3.1 Research design…………………………………………………………… 19

3.2 Population of study……………………………………………………….. 19

3.3 Sample size ……………………………………………………………. 20

3.4 Sampling method………………………………………………………… 20

3.5 Data collection sources…………………………………………………… 20

3.6 Data collection instruments……………………………………………….. 21

3.6.1 Questionnaires……………………………………………….......... 21

3.6.2 Interview guide…………………………………………………… 21

3.7 Data collect methods…………………………………………………….. 21

3.7.1 Observation method……………………………………………… 21

3.7.2 Survey method…………………………………………………… 21

3.8 Data processing, analysis and presentation……………………………… 22

3.8.1 Data processing………………………………………………….. 22

3.8.2 Data analysis……………………………………………………… 22

3.8.3 Data presentation…………………………………………………. 22

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CHAPTER FOUR: PRESENTATION AND ANALYSIS OF RESULTS

Introduction ……………………………………………………………………. 23

4.1 Findings on background information of the respondents………………… 23

4.1.1 Response rate……………………………………………………… 23

CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND

CONCLUSIONS

Introduction ……………………………………………………………….…. 30

5.1 Summary of the major findings………………………………………… 30

5.1.1 Finding on City Tyres product attributes………………………. 31

5.1.2 Finding on relationship between product quality and sales volume 31

5.2 Conclusions…………………………………………………………….. 31

5.3 Recommendations………………………………………………………. 32

5.4 Suggestions for further research………………………………………… 32

References …………………………………………………………………… 33

APPENDICES

Questionnaire on product quality and customer satisfaction……………………. 34

Interview guide for management and staff……………………………………… 39

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LIST OF TABLES

Table 1: Showing the sales of three selected tyres in the last six months………1

Table 2: Showing sample size of customers………………………………… 20

Table 4.1: Showing area of operations………………………………………. 24

Table 4.2: Showing gender of respondents…………………………………... 24

Table 4.3: Showing age distribution of the respondents…………………….. 25

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LIST OF FIGURES

Figure 1: Shows the parts of the product………………………………………. 13

Figure 4.1: Showing respondents level of education…………………………… 25

Figure 4.2: Showing respondents period of employment at City tyres…………. 26

Figure 4.3: Showing the types of attributes customers prefer most…………….. 27

Figure 4.4: Showing how customers perceived the firm’s product quality

attributes to major competitors…………………………………… 28

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ABSTRACT

This study was conducted to examine the concept of product quality and customer

satisfaction using the case of City Tyres Company.

The purpose of the study was to examine the effects of product quality attributes and

customer satisfaction in the Tyre Industry in Uganda as a case study of City Tyres. Cross-

section survey design was employed. Data was collected from primary and secondary

sources. The sample comprised of a sample size of 40 respondents. Stratified random

sampling was used to the respondents divided into stratum and convenient sampling was

used to select the sample. Questionnaires, interview guide were used as the instruments of

data collection.

Findings revealed that, the study covered areas of Ben Kiwanuka Street, Wandegeya,

Martin Road, Industrial Area 6th Street, majority of respondents were males, employees are

mature people and are literate (educated), those who have worked for a long period are

over 6 years, customers prefer Dunlop type of attribute and perceived comfort as major

product quality attribute to major competitors.

In conclusion, findings support that customer satisfied as a result of good product quality

attributes and investigated the relationship between product quality attributes and customer

satisfaction.

Its recommended that, City Tyres Quality Products developed must be in line with

consumer’s attitude behaviour, appeal, using and retaining product quality attributes there

is a need to improve on current measures of customer satisfaction to enable evaluate

customer satisfaction better, to carefully think about product quality attributes specifically

how it impact customers’ attitude.

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CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

The tyre business in Uganda is growing very fast and this can be attributed to the increase

of motor vehicle importation, the increased demand for quality tyres and the increase in

business of sale of tyres, coupled with the license given to individuals to import used tyres

for sale. The introduction of Firestone East Africa (1969), depot has also boosted the tyre

business. As a result, tyre sellers like City Tyres have exposed customers to a variety of

choices. City Tyres is among the major competitors in the tyre market and they have tried

to stock a variety of brands to meet competition.

Table 1: Showing the sales of three selected tyres in the last six months

Tyre six Aug Sept Oct Nov Dec Jan

185R14 Qty) Qty) Qty) Qty) Qty)

Nankanga 120 115 92 76 52 20

Firestone 121 45 - - - -

Pirelli 145 150 165 168 175 177

A product is defined as a bundle of physical and psychological attributes which are capable

of providing customer satisfaction, be it a tangible good or service, Donaldson, (2001).

Kotler and Armstrong (2001), defined product quality as the ability to perform it’s

functions, knowledge of its application than product technical knowledge. The product

should meet the need of the customer and provide value.

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The key is to meet the target of customers’ product quality expectations, meeting

customer’s expectations calls for more trust in the product, how they perceive the delivery

of the product/service relative to their expectation and whether this conforms to their

expectations or not Benny & Parasuraman (1991), thus gaining customer satisfaction. City

Tyres have been distinguished by delivering consistently high quality products than

competitors.

Garvin (1987), as cited in Walter and Aline (1996), provides a well known frame work for

thinking about product quality that is based on eight attributes; performance, features,

reliability, conformance, durability, service ability, aesthetics and perceived quality, he

states that the product based approach focuses on aesthetics and perceived quality and the

manufacturing based focuses on conformance and reliability Garvin (1984, Pg. 33).

Although Garvin’s eight attributes framework is initially appeared in 1984, its relevance for

defining product quality is apparent given its continued used in guiding research in this

area. In this study conducted by Ahire (1996), to examine the effects of integrated quality

management strategies on a firm’s product, four of Garvin’s attributes (performance,

reliability, conformance and durability) were used in measuring the product construct. In

another study to determine whether casual relationship exists between multivariate

constructs of quality (i.e. customer satisfaction, employee satisfaction). Maddu (1995), use

price, product features and product reliability as some of the key attributes of customer

satisfaction.

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Bakunda and Naomi (2001), highlighted that “high quality is assured in today’s

competitive markets, domestic or foreign, any product that doesn’t meet quality

expectations will automatically be rejected, the value for and the practice of product quality

is critical for international, so as to yield customer satisfaction.”

Customer satisfaction on the other hand is the extent to which a product perceived

performance fulfills the customer’s expectations after consumption, Donaldson (2001).

The ultimate goal of total quality is to improve customer value; therefore an organizations

quality concept should evolve into one of total customer satisfaction. As such a company

will gain an edge over competitors by consistently and profitably meeting customer’s needs

and preferences for quality Kotler and Armstrong, (2000).

1.2 STATEMENT OF THE PROBLEM

The Ugandan tyre market has been flooded with a variety of brands for example Michelin,

Firestone, Pirelli, Kumho, Dunlop, Nankanga, GT, MRF, Goodyear and many others, all

having good product attributes that suit the required product quality and standards for the

nature of our roads, at City Tyres it has been observed that some brands have shown a

decline in sales volume and this is as a result of poor product quality of some of these tyres

on the market that have failed to perform and meet expected customer satisfaction. So this

has investigated a research to find out how product qualities affect customer satisfaction.

1.3 PURPOSE OF THE STUDY

The purpose of the study is to examine the effects of product quality attributes and

customer satisfaction attributes in the tyre industry in Uganda a case study of City Tyres.

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1.4 OBJECTIVES OF STUDY

To examine the product attributes of tyres in City Tyres.

To establish the relationship between products attributes and customer satisfaction

attributes of tyres in City Tyres.

1.5 RESEARCH QUESTIONS TO GUIDE STUDY

What are the products attributes of tyres in City Tyres?

What is the relationship between product attributes and customer satisfaction

attributes of tyres in City Tyres?

1.6 SCOPE OF STUDY

1.6.1 Geographical scope

The study will be conducted in Kampala covering central divisions of Kampala; it

will be conducted in City Tyres distributors that are spread throughout the city.

1.6.2 Conceptual scope

The study will cover product quality in detail as the independent variable and

customer satisfaction as the dependent variable and their relationship.

1.6.3 Time scope

The study will cover the three years that is 2008, 2009, 2010, will be carried out in

a period of 6 months from January – June (2011).

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1.7 SIGNIFICANCE OF THE STUDY

The findings of the study will contribute to different stakeholders in the following

ways.

The study will help me get skills and knowledge and understand product attributes

that can enhance customer satisfaction and value and enhance greater application

getting the product right.

With other scholars/researchers, the study will act as a reference material for those

pursing further studies in the areas of product quality and customer satisfaction

attributes, who can use it as literature review.

It will be useful for City Tyres to help the Brand and Marketing Managers come up

with appropriate product quality and improve customer satisfaction attributes.

It will be useful for customers/general public in choosing the right product quality

attributes for Tyres to put on their vehicles.

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CHAPTER TWO

LITERATURE REVIEW

INTRODUCTION

This section reviews the literature relevant t the study. The literature reviewed covers

product quality and customer satisfaction in relation to the objectives of the study. Its in

principal that ideas and knowledge known should be received on product attributes in

relation to customer satisfaction. The relationship that exists between product quality and

customer satisfaction has been attended to in the literature, IGLO-OLAS “Circle of

Housewives” product tests in Belgium, Donald S. Tull and Del I. Hawkins (2001). British

Standard Institute considers quality to be the totality of attributes of product that bear on its

ability to satisfy the stated needs of consumers.

2.1 PRODUCT

A product is defined as a bundle of physical and psychological attributes which are capable

of providing buyer satisfaction, be it a tangible good or a service Donald, (2001). Zairi

(2000), defines a product as the physical psychological and sociological satisfaction the

buyer derives from purchase, ownership and consumption. Kotler and Armstrong (2000),

defined a product as “anything that can be offered to a market for attention, acquisit ion use

or consumption that might satisfy a want or need.”

2.1.1 Product quality

Product quality from the consumer’s perspective is associated with the capacity of a

product to satisfy consumer needs and provide value, Jacobson & Aaker (2000).

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Dawar and Parker (1998), argued that to deliver quality is to identify and produce what

customers need. The ability of a product to perform its function, its product overall

durability, reliability, precision, ease of operation and repair plus other valued attributes

(quality, features and designs) also defines product quality as suggested by Kotler &

Armstrong, (2001).

Bakunda & Ngoma (2001), highlight that, high quality is assumed in today’s competitive

market domestic and foreign. Any product that doesn’t meet quality expectations will

automatically be rejected.

The Technical Business to Trade (TBT) under the WTO arrangement ensures that quality

levels of most products of the commodity nature meet certain international quality

standards, besides world markets – Europe, South Asia have several quality standards

already in place.

Therefore the value for the practice of product quality is critical for international business

success, since this yields customer satisfaction. Mason & Baguette (1998), defined product

quality as the customer wants and extent to which a product meets the needs of the

customer and provides value.

2.2 Attributes of Product Quality

According to Kotler & Donaldson (2001), the following are some of the attributes of

quality, which other scholars consider to be the attributes.

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2.1.1 Performance

Product performance is based on a collection of primary operating characteristics of a

product such as the handling and top speed of a car, Kochan (2002), or the sound clarity

and power of a stereo system. A variety of modules influence the performance of a car for

example overall feel and handling is determined by many modules including the chains,

tires, body and engines. Performance in terms of top end speed is primarily determined by

the power of the engine module.

Computer manufacturers will often chose generic modules because they are inexpensive,

readily available and used by all major competitors (e.g. Interl processors). One problem

associated with this practice is that the use of generic, modules any not optimize system

performance, Murphy, (2000).

Companies are essentially training optimal performance for the ease of assembly, wide

availability and lower costs of standard modules in addition since customers often prefer

certain brand name modules such as the interl processor, designers feels obligated to select

module brands based on consumer preferences rather than trying to optimize system

performance.

At City Tyres they have a designed unit that performs well in application of tyres i.e.

removing damaged tyres and replacing them, providing performance levels desired by the

customers.

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2.2.2 Conformance

Conformance is a well known, traditional notion of quality and represents the extent to

which a product meets design specifications, Rossler, (2001). Consider a machined steel

part that possesses ten quality characteristics (length, width, surface finish, flatness etc.) If

the part is measured and all ten features fall within the specification limits, then the part

would conform to requirements of course a conforming product can still be inferior and

unfit for use because of a fault or poor design.

Whether or not the use of modularity improves quality is still uncertain, many of the

traditional inspection and measuring activities designed to check for conformance are

naturally pushed to the supplies, with more traditional manufacturing and assembly

methods, a large amount of inspection and measurement is done by the system integrator, 1

modular arrangements because a high level of cooperation is required between the

assembler and suppliers, incoming inspection is frequently waived and modular often

proceed directly to the assembly floor. Systems integrators typically handle system – level

conformance issues and are most concerned with the conformance of the module interfaces

for example Dell would want to be certain that the connection points on hard drives are

within specifications, Welch (2003), components level conformance checks would be the

responsibility of the hard drive supplier.

2.2.3 Features

Additional attributes that boost capabilities of the product are called features. These

features are sometimes referred to as the bells and whistles of the product. Starr, (1965).

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In modularity, attributes are often such things as larger hard drives or upgraded car stereo

systems. It’s the secondary characteristics of a product that supplement its basic

functioning.

In many ways economical mass customization is possible because of modularity. The ease

with which customers choose options and or delete features when ordering a computer is

facilitated by the modular architecture of the IBM compatible PC Murphy, (2003).

Providing more product features (because you can) is not always a sign of high quality.

Many features are never used and the additional complexity can decrease a product’s

reliability and serviceability.

2.2.4 Serviceability

The speed, courtesy, competence and ease of the repair or service experience represent a

measure of serviceability. The time and effort required to get the brakes repaired on your

car are an example of measure of serviceability. Some aspects of serviceability such as the

courtesy of the machine that fixed your brakes are subjective.

Using modularity, service speed is general improved since well defined interfaces allow the

easy and quick replacement of modules Oil Filters, brake pads and Air filters some to mind.

In the first food industry, assembly of items is facilitated by use of Pro O sliced (e.g.

tomatoes and onions) and pre-cooked Moran, (2002). The ingredient represents the

modules in this case. Having to prepare all these ingredients from scratch for each customer

would be inefficient and would greatly increase the service time.

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However at City Tyres its frequently necessary to replace an entire module when only a

single component within that module has failed, this is why modules themselves often

contain certain interchangeable parts such as the brake pads on an exile module. The

mechanic does not replace the entire axle, just the brake pads, in other cases; the entire

module must be replaced even through only one sub-component within that module has

failed.

2.2.5 Reliability

Reliability is the ability of the product to perform its required functions, under stated

conditions for a specified period of time (MTBF) and the mean time to first failure

(MTFF), poor reliability results in excessive down time. Therefore reliability has a

significant impact on productivity.

It’s important to distinguish between reliability of individual components and reliability of

the system or overall product. In the 1980’s, product complexity grew and defective

products were becoming more common place. At the same time customers were demanding

higher quality for example a pager or call phone includes hundreds of components. Each

component typically includes numerous important quality characteristics. It was not

uncommon for a single cellular phone to include thousands of opportunities for defects

(OFD) Turby, (2000).

The relationship between product complexity out going quality formed the basis for the

development of six sigma quality philosophy. As the number of foods grows very large, the

component level quality required to ensure a high quality finished product is staggering for

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example at City Tyres even if were to attain six sigma quality on every OFD,

approximately one car in every 15 replaced with tyres would contain at least one defect.

Modularity can increase product reliability in 3 ways:

It allows the grouping of parts depending on their influence on system reliability

It enables independent module development and testing

It supports redundancy strategies

2.2.6 Durability

Garvin (1987), defined durability as the amount of use one gets from a product before it

breaks down and replacement decision, the user has to weigh maintenance costs against the

purchase, repair and operating expenses of a new unit reliability plays a part in this

decision since the frequency of repair is one factor that determines the total operating costs.

Deciding when to replace a product is based on 2 factors

Does the product still provide the needed performance?

Does the downtime and repair costs justify maintaining the product?

At City Tyres well designed machinery reduces downtime as well as repair costs and

therefore has the potential to increase products durability. The cost and length of repairs is

dependent on the product design. If it is clear that parts of a product will have to be

replaced during the product life time (e.g. tyre) the use of limited life modules is needed.

Limited life modules are interchangeable components that can be easily replaced when they

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are worn out. The size of the limited life product is restricted so that only the worn out parts

of the product need to be replaced in case a tyre got a puncher.

2.3 Customer satisfaction

“The ultimate goal of total quality is to improve customer value, therefore an

organization’s quality concept should evolve into one of total customer satisfaction.” As

such a company will gain an edge over competitors by consistently and profitably meeting

customer’s needs and preferences of quality Kotler & Armstrong (2000).

Figure 1: Shows the parts of the product

Source: Kotler and Armstrong (2001)

By core product, a customer is looking at that product he is really buying; will it

have a core problem – solving benefit?

Augmented

product

Actual

product

Core

product

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Actual product should have the five above characteristics i.e. packaging, feature,

design quality level and brand name.

Augmented product is built on the core and actual product as additional customer

services and benefits.

Customer satisfaction, according to Kotler (2001), is highly associated with value

and price.

2.4 Attributes of customer satisfaction

2.4.1 After sales services

It explains the percent of the valiance, represents statements which reflect the need of the

respondents to have complete contact persons. Of special importance here are products and

market knowledge the ability to produce customized concepts and to implement these,

Albech (1984). Those surveys also consider it to be important that they rely on the

representatives and that the suppliers deliver what is agreed a point which is also expressed

in the requirement for the manufacturer to have reliable employees. Also of significance is

an emotional aspect which reflects how much the respondents like the person with whom

they are dealing.

2.4.2 Technical information

The initial variance encompasses these variables which impact on the manufacturers’

product’s technical information. Particular emphasis is placed on their ability to bring out

successful innovations on a regular basis but these should not be two products. Anderson &

15

Formell (1994), in an ideal world, these should make fast firm around of sock and be

supported by effective customer advertising.

2.4.3 Delivery period

Delivery competence and attractiveness of the trading margin. Two items which can be

considered to be linked purely on intuitive grounds are combined is covered by the terms

delivery competence and the attractiveness of the trading margin Biehl, (1996). This covers

first, the punctuality, completeness and reliability of deliveries and second, the

attractiveness of the trading margin which can be achieved with the product supplied by a

manufacturer.

2.4.4 Quality and flexibility

The phenomenon of combining two attributes which would appear to be separate can be

observed of the variance Andaleeb, (1996). In this context quality refers to the product

offered by the company but in contrast, flexibility refers to the ability of the field personnel

to satisfy the individual needs of the retail outlets, spread of conditions.

This only covers one item, it deals with the extent by which the supplier operates a spread

in the condition offered.

2.4.5 Packing/logistics

It combines those variables which affects the aspects of packing and the contentious areas

of logistics. Particular emphasis is given her to those items which are used to check

whether manufacturers react quickly and effectively to deliver problems. Another

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important point here is whether the transport and repacking services offered satisfy the

needs of the retail trade.

The environmental friendliness of the packing plays a crucial role here. A company can

also enhance its image because of its expertise in respect of shelf optimization and space

management and by applying a performance – related logistics discount system.

2.4.6 Sales promotion

With a variance percentage of 8.3 percent, relates to items to sales promotion. In this

context, professional planning and organization of appropriate activities are of particular

significance. In addition to this, the retail trade is very keen that these measures are tailored

to satisfy its individual needs. The fact that this is likely to have a positive effect on the

flow of gods in other respect is hardly surprising.

2.4.7 Intensity of cooperation

The intensity of cooperation between manufacturers and the retail trade is reflected in

factor above accounts for 6.3 percent of the initial variance.

The item which is used to define the problem – free processing of orders of the greatest

importance in this factor. Other aspects which should be assigned to this factor are those

which relate to manufacturer’s systems of conditions, their activities to developing and the

availability of a contact person to handle any problem which may occur.

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2.5 Relationship between product quality and customer satisfaction

Among identified product quality attributes, leading customer satisfaction and which lead

dissatisfaction, in terms of frequency of mention, the most often cited product quality

attributes leading to satisfaction are; responsiveness. The literature that the quality

attributes still plays a vital role in determining customer satisfaction Pirsig, (1992, p.73).

Across the satisfied and dissatisfied groups, the attributes of responsiveness, competence,

service, reliability and ease of use are key attributes of both dissatisfaction and satisfaction.

The first three attributes are more traditionally product oriented and have been considered

as critical attributes of tradition all product quality attributes e.g. (Berry et al, 1985;

Johnson, 1995). The attributes, ease of use, is unique to web-based products. Among the

attributes, only responsiveness falls within the list of dual factors uncovered, Johnson,

(1995).

A further comparison of two groups indicates that the importance of each often mentioned

attribute does differ some what I terms of their respective weights in determining

customer’s satisfaction and dissatisfaction, Garvin’s, (1984, 1987).

Durability, serviceability and reliability, all relate to product quality and customer

satisfaction that deals with how much hassle-free use a customer will experience with a

product, Nunnally, (1978).

The product quality attributes of performance and conformance both relate to customer

satisfaction, either meeting performance standards from the customers perspective or

18

meeting design speculation, it appear to deal directly with intended use of the product,

perceived quality, aesthetics and features relate to customer satisfaction preferences

feelings and tastes, Nunnally, (1978).

Conclusion

By identifying the two variable product quality and customer satisfaction it has been

possible to identify the attributes of each variable, the relationship between the valuables, it

shows that product quality attributes are connected to the customer satisfaction. (Durability,

Serviceability and reliability) seems to relate to how much use the customer will derive

from a product. (Conformance and performance) deals with how well a product fits the

customer’s intended use. And (perceived quality, aesthetics and features) relates to the

customer’s preferences for the impressions of a product. In this regard all of the product

quality attributes are related to the customer satisfaction and therefore involved some level

of subjectivity although in varying degree

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CHAPTER THREE

METHODOLOGY

INTRODUCTION

This section discussed the various methods that will be used in data collection and analysis,

it describes the research designs used the study population and sources of data, sampling

procedures, instruments, measurements of variables and the problems encountered during

the process of carrying out research.

3.1 Research design

The study will be carried out using cross-section survey design whereby both

quantitative and qualitative research techniques will be employed. This is due to the

fact that no single design can handedly cover the subject matter extensively.

3.2 Population of study

City Tyres main branch in Kampala will be used as a case study will target

employees from the firm’s main branch and will include both managers and

employees of the firm. The survey population will constitute of staff members and

consumers who total to 100.

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3.3 Sample size

A total of 40 respondents will be studied

Table 2: Showing sample size of customers

Type Department Size

Consumers Gapco

(Ben Kiwanuka Street)

15

City Oil

(Wandegeya)

10

City Oil

(Martin Road)

5

City Oil

(Industrial Area)

10

Total 40

Source: primary data.

3.4 Sampling Method

Stratified random sampling will be used in selecting respondents from each of the

stratum in table 1 above, as a basis to divide respondents into strata then collect data

from them. Also on selecting other consumers from departments the researcher will

use convenient sampling because the researcher will choose consumers that are easy

to identify and locate and will interview close friends to make up the samples.

3.5 Data collection sources

The researcher will use secondary data from text books, journals and reports and

this will be supplemented by primary data obtained directly from respondents.

21

3.6 Data collection instrument(s)

3.6.1 Questionnaires

The researcher will administer questionnaires which will be structured in nature,

they have same wording and order to all respondents as a way of collecting data on

the objectives of the study so as to make sure the objectives are exhausted.

3.6.2 Interview guide

The researcher will present oral verbal stimuli seeking oral verbal responses from

respondents and this will be done at the start of the study. The researcher will

directly explain questions which seem to be difficult to understand to respondents in

order to get a reply. The researcher will administer and manage the interview and

the answers that will be obtained from the interview will be analyzed when writing

the research report.

3.7 Data Collection Methods

3.7.1 Observation method

The researcher will collect information from respondents through direct observing

respondent’s products without asking respondents. For example how long it takes a

consumer to use a tyre if it’s well placed on the vehicle.

3.7.2 Survey method

The researcher will use a systematic collection of information directly from

customers involve a face to face conversation between the researcher and customers

to obtain information. The researcher will use or employ telephone mail and

personal methods.

22

3.8 Data Processing, Analysis and Presentation

3.8.1 Data processing

The researcher will process the data collection by editing, coding, classification and

tabulation of the data before it’s entered into the computer.

3.8.2 Data analysis

The researcher will analyze the data using various statistical methods and the most

common used is statistical package for social sciences (S.P.S.S) data and the current

one is SPSS which is capable of analysis for example Multi-ANOVA, Multiple

repression analysis and inferential analysis.

3.8.3 Data presentation

The researcher will use frequency tables, pie charts, graphs etc. that will be drawn

to present the findings.

23

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF RESULTS

Introduction

The chapter entails interpretation and presentation of orderly findings as the result of the

study and data gathered from the field.

Under this section, the results were presented in relation to the objectives e.g.

(i) To examine the product attributes of tyres in City tyres

(ii) To establish the relationship between products attributes and customer

satisfaction attributes of tyres in City tyres

4.1 Findings on Background information of the respondents

The background information is presented showing demographic information of

respondents from the selected City tyres branches.

4.1.1 Response rate

40 questionnaires were issued to staffs of City tyres and all of them were returned

since questionnaires were given to staffs at the scene and returned their after filing

them which means 100% response rate was achieved.

24

Table 4.1: Showing area of operations

Area Frequency Percentage (%) Cumulative percentage (%)

Gapco

Ben Kiwanuka

15 37.5 37.5

City Oil

Wandegeya

10 25. 62.5

City Oil

Martin Road

5 12.5 75.

City Oil

Industrial Area

10 25. 100.

Total 40 100


The study covered the areas of Ben Kiwanuka Street, Wandegeya, Martin Road, Industrial

Area 6th

Street the response percentages were as follows respectively. Ben Kiwanuka Street

37.5%, Wandegeya 25%, Martin Road 12.5%, Industrial Area 6th

Street 25%. This was a

fair distribution of respondent with a clear motive of generating reliable information about

the study.

Table 4.2: Showing gender of respondents

Gender Frequency Percentage (%)

Females 15 37.5

Males 25 62.5

Total 40 100


The results revealed that the majority of the respondents were males (62.5%) while the

females comprised 37.5% of the sample. On the other hand male staffs were the majority.

25

Percentages (%)

22.5

15

25

37.5A'level

P rimary level

University level

O'level

Table 4.3: Showing age distribution of the respondents

Age Frequency Percentage (%) Cumulative

percentage (%)

20-29 11 27.5 27.5

30-39 9 22.5 50.

40-49 15 37.5 87.5

Above 49 5 12.5 100

Total 40 100


Overall, the respondents in the 20-29 years, 30-39 years, 40-49 years, 49 years above

comprised 27.5%, 22.5%, 37.5%, 12.5% respectively. Thus means City oil employees are

mature people forming 87.5% of the total sample of the study.

Figure 4.1: Showing respondents level of education


26

The results showed that most of the respondents had studied and obtained various

education levels i.e. Primary level 15%, O’level 37.5%, A’level 22.5% and University level

25%. This therefore means that the respondents are literate (educated) and most of them are

of Ordinary level who are equivalent to 37.5%.

Figure 4.2: Showing respondents period of employment at City tyres


It’s shown distinctively that the respondents period of employment at City tyres is that

those who have worked for a shorter period 1-2 years are 7.5%, 3-4 years 30%, 5-6 years

25% and above 6 years are 37.5%. Therefore those who have worked for a long period of

time are above 6 years of employment at City tyres.

27

Figure 4.3: Showing the types of attributes customers prefer most


Among the City tyres products, the study indicates that; Dunlop (22.5%), Pireli (20%),

Kumho (12.5%) were rated the most common and popular products while Bankook (10%),

Firestone (10%), MRF (7.5%), Ceat (2.5%), GT Maxmiller (2.5%), Good year (2.5%),

Nankang (2.5%) and Michelin (2.5%) the lowest respectively. The study shows that

customers prefer Dunlop type of attributes most than the other types of attributes on the

market.

28

Figure 4.4: Showing how customers perceived the firm’s product quality attributes to

major competitors


The results above show a relatively high level of products performances which is as a result

of customer’s being satisfied with the products, show that design pattern 7.5%, comfort

(30%), reliability (15%), durability (20%), performance (17.5%), tubeless (25%), tube tyre

(5%), ply rating (5%). Therefore customers at City tyres perceived comfort as the finding

major product quality attributes to major competitors.

Relationship between product quality and customer satisfaction

There is a significant relations between product quality and customer satisfaction which

means product quality, predicts customer satisfaction for City tyres products this is in

29

constituent with Nunnally, (1978), Pirsig, (1992, p.73), Johnson, (1995), who insist that the

basic functions of product quality is to provide customer satisfaction.

30

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSIONS, RECOMMENDATION AND AREA

OF FURTHER STUDY

INTRODUCTION

This section presents the summary, recommendation and conclusions of the findings and

area of further study. The previous four chapters have laid a basis on which the report can

be wound up.

5.1 Summary of the major findings

The study examined product quality and customer satisfaction using the case of City tyres

products. The study was summarized based on the objective questions analyzed from

chapter four, that; 100% response rate was achieved since 40 questionnaires were issued to

staff of City Tyres and all of them were returned filled, study covered areas of Ben

Kiwanuka Street, Wandegeya, Martin Road, Industrial Area 6th

Street, majority of

respondents were males (62.5%) compared to females that comprised of (37.5%),

employees of City Tyres are mature people 87.5% of the sample of the study, most

respondents are literate (educated) and most of them are of ordinary level (37.5%). Those

who have worked for a long period of time are above 6 years. The study also showed that

customers prefer Dunlop type of attribute as most type of attributes on the market and also

showed that customers at City Tyres perceived comfort as the major product quality

attributes to major competitors.

31

5.1.1 Finding on City Tyres product attributes

It shows that each product reputation provides a much representative indication of

customer satisfaction and that relatively high level of customer satisfaction is as a result of

good product quality attributes.

The findings presented a significant relationship between product quality and customer

satisfaction.

5.1.2 Finding on the relationship between product quality and sales volume

There is a significant relationship between product quality and sales volume meaning

product quality, product sales volume for City Tyres attributes. This is in constituent with

Hacobson & Aaker, (2000). Dawar and Parker (1998), argued that to deliver quality is to

identify and produce what customers need. The ability of a product to perform its function,

its product overall durability, reliability, precision, ease of operation and repair plus other

valued attributes (quality, features and designs) also defines product as suggested by Kotler

& Armstrong, (2001). Therefore the value for the practice of product quality is critical for

business success since it yields customer satisfaction hence sales volumes, Mason &

Baquette, (1998) customers want and extent to which a product meets the needs of

customer and provides value.

5.2 Conclusions

The findings support the contention that customer satisfaction is as a result of good product

quality attributes. Particularly, findings indicate that there exist co-alignment between

product quality attributes and consumers’ behaviour to buy. Accordingly the study

32

investigated the relationship between product quality attributes and customer satisfaction.

All these were found to exist significantly for the City tyres products.

The linkage between product quality and customer satisfaction is clear especially when

consideration is given to the effort by the City tyres company to innovatively develop

image based through consumer research that the company conducts annually to distinguish

this products from other homogenous products offerings.

5.3 Recommendations

In light of the research findings, the following recommendations are made;

The positive influence of product quality attributes is significant on City tyres products

performances and as such City tyres marketing division carefully think about product

quality attributes specifically how it impact customers’ attitude.

The quality developed must be in line with consumers’ attitude behaviour, appeal, using

and retaining product quality attributes. This way will be able to have improved customer

satisfaction in terms of superior customers’ perception of over all quality.

The City tyres company through its division marketing departments need to improve on

current measures of customer satisfaction to enable it evaluate customer satisfaction better.

These measures should both include product consumer attitude such over all quality

perception or purchase intent and market performance indicators such as profitability and

price and not market share as it is currently used.

33

5.4 Suggested Areas of further study

Other researchers should research on the following;

Product attributes and pricing of products

Product attributes and distribution strategies used

Product attributes and promotional strategies used.

34

REFERENCES

Ahire, S., Golhar, D. and Waller, M. (1996), “Development and Validation of TQM

implementation constructs,” Decision Sciences, Vol. 27 No. 1.

Andaleeb, S.S. (1996), “An experimental investigation of satisfaction and commitment in

marketing channels. The role of trust and dependence, journal of retailing, vol. 72, pp. 77-

93.

Anderson, E. and Fornell, C. (1994), “A customer satisfaction research prospectus” in rust,

R and Liver, R (Eds), service quality. New Directions in Theory and Practice, Thousand

Oaks, CA pp. 241-69.

Bakunda & Ngoma, (2001) Business Strategy (An introduction), pg. 212.

Bearden, W. and Teel, J. (1983), “selected determinants of consumer satisfaction and

complaint reports” Journal of Marketing Research, Vol. 20, pp. 21-8.

Bettman, R. (1993), “Is your quality program dragging? Quality Progress, pp. 105-7.

Bill Donaldson, (2001) Sales Management Thoery and Practice, pg. 47, 155, 250.

Brubn, M. (1982), Konsumerntezufrienhit und Beschwerden, Frankfur/Main, Bern, Vol.

14, pp. 300-7.

Crosby, P.B. (1979), Quality is Free: The Art of Making Quality Certain, New

American Library, New York, NY.

Deming, W.E. (1986), Out of the Crisis, MIT Center for Advanced Engineering Study,

Cambridge, MA.

Feigenbaum, A.V. (1951), Total Quality Control, McGraw-Hill, New York, NY.

Garvin, D.A. (1984), “What does product quality really mean?”, Sloan Management

Review, pp. 25-43.

35

Garvin, D.A. (1987), “Competing on the eight dimensions of quality,” Harvard Business

Review, Vol. 65 No. 6, pp. 101-9.

Goodman, J., Bartgaze, G. and Grimm, C. (1994), “The key problem with TQM,” Quality

Progress, pp. 45-8.

Madu, C., Kuel, C. & Lin, C, (1995), A Comparative analysis of quality practice in

manufacturing firms in the US and Taiwan, Decision Sciences, Vol. 26 No. 5.

Moran T (2000) Delphi Sewe as Mercedes stand-in for cock pit modules, Automatic News,

May 15. p. 12.

Murphy, T. (2000), Brakeforce-with Advices brake market may never be the same, ward’s

Auto world, Vol. 38 No. 4. p.42.

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23, p.5.

Naumann, E., and K. Geil (1995). Customer Satisfaction Measurement and Management.

ASQ Quality Press, Wisconsin, 457p.

Philip Kotler and Gary Armstrong (2000), principles of marketing 2nd

Edition, pg. 239, 244

Englewood Cliffs, N.J. Prentice, Hall 2000.

Rossler, E, (2001), the U-Boat, The Evolution and Technical History of German Sub

marines, Cassell & Company, London.

Starr, M.K. (1965), Modular Production – a new concept, Harrad Business Review Vol. 43

No. 6 pp. 31-42.

Tull and Hawkins (2001), Marketing Research Measurement and Method, pg. 308, 394.

Turby, M, (2000), Nasser, Ford embrace data driven quality plan Detroit News, January 26,

p. F1,

Welch, D. (2003), How Nissan laps Detroit, Business Week, Dec, 22, p.58.

36

MAKERERE UNIVERSITY

QUESTIONNAIRE ON PRODUCT QUALITY AND CUSTOMER SATISFACTION

TO BE FILLED IN BY MANAGERS AND EMPLOYEES OF CITY TYRES

Dear Sir/Madam,

Am a student of Bachelor of Commerce, course at Makerere University I am undertaking a

research concerning product quality and customer satisfaction. The questionnaire intends to

seek information concerning this area.

All information provided is purely for academic purposes and it will be held in strict

confidence. Thank you very much for your cooperation.

SECTION A

1. What is your sex?

a) Male b) Female

2. What is your age?

20 – 29 30 – 39 40 – 49 Above 49 years

3. What is your position?

Manager

Sales force

Other employees

37

4. What is your area of operation?

Gapco City Oil City Oil City Oil

Ben Kiwanuka Street Martin Road Wandegeya Industrial Area

5. What is your highest level of education?

a) Primary level b) O’level c) A’level

d) University level

6. What is your marital status?

a) Single

b) Married

c) Divorced

7. For how long have you been employed by City Tyres Company?

a) 1-2 years b) 3-4 years c) 5-6 years d) above 6 years

SECTION B: Product attributes of tyres in City Tyres

Please indicate the extent to which you agree or disagree with the following statements.

Scale: Strongly agree (SA) = 5, agree (A) = 4, not sure (N) = 3, disagree (D) = 2, strongly

disagree (SD) = 1

1. Are tyre attributes most important to your customers?

Strongly agree Agree Not sure Disagree Strongly disagree

38

2. Do tyres have product attributes that influence your customers’ decision to buy?


3. Do product attributes contribute to good business environment?


4. Does the company stock a variety of tyre attributes?


5. What type of tyre attributes do your customers prefer most?


Pireli

Dunlop

Kumho tyres

MRF (tyre with

muscle)

Roadstone

Bankook

Goodyear

Ceat

GT Maxmiller

Nankang

Michelin

Firestone

39

6. Does the company stock all sizes of tyres?


SECTION C: The relationship between products attributes and customer satisfaction

attributes of tyres

1. Are product attributes offered, increasing the number of customers of City Tyres

Company?


2. Are all the tyre attributes important to your customers?


3. Do tyres have product attributes that influence your customers decision to buy?


4. a) Are customers satisfied with product quality attributes of tyres they buy at City

Tyres?


40

b) How do you ensure this (measure) customer satisfaction?

………………………………………………………………………………………...

5. Do product attributes have a big positive impact on customer satisfaction?


6. What is your perceived customers’ view of your firms’ product quality attributes to

major competitors on the following attributes?

FACTORS Strongly agree Agree Not sure Disagree Strongly disagree

Design pattern

mg/hw

Comfort

Reliability

Durability

Performance

Tubeless

Tube tyre

Ply rating

Thank you very much for your response

41

Dear Respondent?

I am Semakula George a student of Makerere University, Kampala carrying out research on

a topic product quality and customer satisfaction specifically City Tyres company. I request

you to spare part of your valuable time and answer the question asked below. This research

is purely academic and maximum confidentiality is promised.

Thank you very much for your assistance.

INTERVIEW GUIDE FOR MANAGEMENT AND STAFF

1. What is your designation?

………………………………………………………………………………………...

2. For how long have you worked with City Tyres Company?

………………………………………………………………………………………...

3. Which product attributes do you think enhance customer satisfaction?

………………………………………………………………………………………...

4. Do you think customer’s needs, wants and expectations are being met with product

attributes?

……………………………………………………………………………………….

5. Have you received any complaints about product attributes and what comments

have you received?

………………………………………………………………………………………

6. In your own view, how can management improve on product attribute in City Tyres

Company?

……………………………………………………………………………………….

42

7. In your view, what could be other factors that affect customer satisfaction other

than product attributes?

………………………………………………………………………………………...

………………………………………………………………………………………...

………………………………………………………………………………………...

8. Do you think product attributes affects customer satisfaction? If yes, how?

………………………………………………………………………………………...

makerere university college of education and...

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