satisfaction review 1

7/29/2019 Satisfaction Review 1

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CUSTOMER SATISFACTION WITH SUPERMARKET RETAIL SHOPPING

Binta Abubakar

Swinburne University of Technology

Felix Mavondo

Clayton Campus

Val ClulowSwinburne University of Technology

Abstract

We investigated the customer ratings of importance of several attributes associated withsupermarket shopping. We then reviewed the satisfaction ratings of the attributes. The aim

was to rank the factors and to relate the importance rankings to customer satisfaction. Thefindings have implications in that a retailer is able to assess how well they meet their

customers needs on important attributes. The results suggested that since retail formats havebecome very standardised, corporate reputation is rated high and may be a source ofsustainable competitive advantage. Accessibility was considered important, as was quality of

service especially the friendliness and efficiency of checkout personnel. The results suggestedthe retail chain has largely been able to align its efforts to the areas considered important by

customers. However, the satisfaction scores are rather low suggesting the retailer might besusceptible to an attack by a competitor prepared to deliver superior value to the customers.

Introduction

Supermarket shopping is often categorised as a self-service retail environment. Forsupermarket retailers wanting to build relationships with their customers, being able to track

their levels of satisfaction with the key elements of the supermarket environment isextremely important. From the retailers perspective the aim is to minimise the reasons for

complaints and dissatisfaction and the cost of a service recovery plan (McCollough, Berry andYadav, 2000) whilst establishing a track of direct feedback from customers about theirreactions to those key elements.

Satisfaction is a consumers post-purchase evaluation of the overall service experience. It is

an affective reaction (Menon and Dub, 2000) in which the consumers needs, desires andexpectations during the course of the service experience have been met or exceeded

(Lovelock, 2001). Satisfaction in this sense, could mean that a supermarket has just barely metthe customers expectations, not exceeded nor disappointed those expectations. The benefitsof taking the customers response beyond satisfaction at this level by exceeding expectations,

is a competitive strategy many retailers aspire to achieve.

Customer satisfaction now represents a central strategic focus for customer-oriented firms

across diverse industries (Szymanski and Henard, 2001). In recent years, researchers havefocused their attention on measuring levels of customer satisfaction (Tse and Wilton, 1988;

Myers, 1991; Peterson and Wilson, 1992; Tom and Lacey, 1995; Hackl, Scharitzer and Zuba,2000) and on the cues that signal services quality to customers (Carman, 1990; Parasuraman


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et al. 1988, 1991, 1994). There has also been an attempt to better understand the dynamics of

the relationship that exists between satisfaction and service quality and the impact oncustomer purchase intentions (Bolton and Drew, 1991; Cronin and Taylor, 1992; and Taylor

and Baker, 1994).

Australian supermarkets and grocery stores contributed AUD$38.3 billion and 26% of total

retail sales to June 1999 (IBIS, 1999) The supermarket sector of the retail industry is highly

competitive and stores operate in a mature market with slow growth opportunities and viefiercely for market share. Any factor which might influence profit in such conditions is critical(Anderson and Mittal, 2000). Customer satisfaction has become a primary point ofdifferentiation in a market where consumers typically make a weekly trip to their preferred

supermarket and spend more on this trip than at other times (Kahn and McAlister, 1997).

Against this background of fierce competition in a mature Australian marketplace, a studywas designed to investigate customers satisfaction levels with a range of key elements, whichcontribute to the retail offer presented by ane Australian supermarket chain. Factors of

particular interest in a retail supermarket environment are ambience, friendliness of staff,specialised foods on offer, merchandise variety, prices, check out procedure and accessibility.

Background Literature

In an early conceptual article, Kotler, (1973) develops a systematic exposition of

atmosphere as a buying influence. Kotler explores the notion that one of the mostsignificant features of the total product is the place where it is bought or consumed. Theatmosphere of the place is more influential than the product itself in the purchase decision"

Kotler, (1973, p. 48). The term atmospherics is defined in Kotler, (1973) as the effort todesign buying environments to produce specific emotional effects in the buyer that enhance

his/her purchase probability. Atmosphere is experienced through the senses, primarily sight,

sound, scent, and touch. Bitner used the term servicescapes to describe the idea ofatmospherics in a service setting. Servicescapes also adds the notion of the service

personnel to physical setting (Bitner, 1992). Bitner elaborates on the neglect of theservicescape as follows: The effect of the atmospherics, or physical design and dcor

elements, on customers and workers is recognised by managers and mentioned in virtually allmarketing, retailing, and organisational behaviour texts. Yet, particularly in marketing, thereis a surprising lack of empirical research or theoretically based frameworks addressing the

role of physical surroundings in consumption settings. The servicescape is describe ascovering such elements as physical layout of the service facility, ambience, background music

and that the servicescape can also affect customers impressions of and satisfaction withservice (Lovelock, Patterson and Walker, 2001). Service quality or desired expectations are

defined as a blend of what the customer believes can be and should be (Zeithaml and Bitner1996). Service quality can be measured by the level of discrepancy between consumerexpectations or desire and their perceptions of what they received as described by the

SERQUAL scale (Bebko 2000). Customer satisfaction occurs when the value and customerservice provided through a retailing experience meet or exceed consumer expectations. If theexpectations of value and customer service are not met, the consumer will be dissatisfied.

Unfortunately for retailers, most consumers do not complain when dissatisfied, they just shopelsewhere (Jackson, 1999). Retailers should always keep in mind that customer expectations

move continuously upward and that only satisfied customers are likely to remain loyal in thelong run.


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Methodology

The research was conduct for an Australian supermarket chain. A survey method was utilised

to determine key variables that create customer satisfaction. The effective sample was 800.This was a response rate of 75 %. All questions were on a 10-point Likert-type scale rangingfrom 1=totally dissatisfied to 10=totally satisfied. The questionnaire was 3 pages long.

Exploratory Factor Analysis was used to reduce the number of questions into a manageable

set. The resulting factors were checked for meaning and reliabilities were calculated. All thescales had reliabilities above .75, which exceeds the recommended level of .7 (Nunnally1978). The respondents were asked to rate the importance of each item and then to rate howsatisfied they were with that particular item as provided by the retailer. Data was collected

from four postcodes in which the retailer was the dominant retail player.

Results and Discussion

The figures in brackets are the rankings of the importance attached by consumers to variousitems. The most important factors are store reputation for ethical business practices, food

handling and environment. This was followed closely by accessibility (parking) and thencustomer service and product range and depth. A comparison of the postcodes indicated therewere differences in what was considered important but the pattern of rankings was

maintained.


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Figure 1: Importance of Measures of Satisfaction by postcodes

A

N=175B

N=250C

N=125D

N=250F-ratio Different sets

Store reputation (food handling,

safety hygiene) (2)8.76

9.398.73 9.36 15.185***

B & D>A&C

Store reputation (animal welfare,

free range eggs etc) (3)8.41

8.628.43 8.31 2.308*

B, A &C>D

Store reputation (ethical business

practices) (1)8.82

8.978.77 8.98 1.030

Quality of fruits and vegetables 6.23 6.43 6.27 6.22 1.172

Quality of meat products (11) 6.38 6.50 6.39 6.24 1.543

Range of products (7) 6.49 6.73 6.30 6.32 3.744** B>D

Service quality (6) 6.596.73

6.83 6.57 1.072

Product availability (9) 6.44 6.60 6.24 6.31 2.339

Reputation (10) 6.42 6.74 6.70 6.51 2.011

Pricing (13) 6.25 6.52 6.27 6.14 3.778** B>DParking facilities (5) 6.77 6.88 6.73 6.58 1.681

Enjoyment of shopping

experience (8)6.45

6.566.67 6.37 1.208

Overall cleanliness and hygiene ofstore (4)

6.826.81

6.63 6.54 1.894

*p


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Figure 2: Mean Satisfaction Measures for Different Postcodes

A

N=175B

N=250C

N=125D

N=250F Different

sets

Store reputation (food handling,

safety & hygiene) (2)8.09

8.237.88 7.94 3.416*

B>D

Store reputation (animal welfare, free

range eggs etc) (1)8.25

8.058.06 7.68 6.315***

A, B&C>D

Store reputation (ethical business

practices (3)7.68

7.917.32 7.58 7.567***

B>C & D

Quality of fruits and vegetables (13) 6.236.43

6.27 6.22 1.172

Quality of meat products (11) 6.38 6.50 6.39 6.24 1.543

Range of products (7) 6.496.73

6.30 6.32 3.744**B>D

Service quality (6) 6.596.73

6.83 6.57 1.072

Product availability (9) 6.44 6.60 6.24 6.31 2.339

Reputation (10) 6.42 6.74 6.70 6.51 2.011

Pricing (12) 6.25 6.52 6.27 6.14 3.778** B>D

Parking facilities (5) 6.77 6.88 6.73 6.58 1.681

Enjoyment of shopping experience (8) 6.45 6.56 6.67 6.37 1.208

Overall cleanliness and hygiene of

store (4)6.82

6.816.63 6.54 1.894

*p


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