The relationship between service quality, customer satisfaction and customer loyalty in the retail supermarket industry
- Authors: Ndhlovu, Thinkwell
- Date: 2014
- Subjects: Consumer satisfaction , Customer loyalty , Customer services -- Rating of , Customer services -- Quality control , Relationship marketing , Supermarkets -- South Africa -- Grahamstown
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1202 , http://hdl.handle.net/10962/d1013221
- Description: The increasingly competitive business environment has influenced contemporary organisations to build mutual beneficial relationships with their customers indicating a paradigm shift from transactional marketing. In order to compete in this intense competitive environment, organisations are creating competitive advantage over their rivals through service quality that will influence customer satisfaction which subsequently leads to customer loyalty. Service quality has been found to be the key strategy of success and survival for most organisations like retail supermarkets who want to win the loyalty of their customers because of its positive effect on customer satisfaction. The purpose of this research was to determine the relationship between service quality, customer satisfaction and customer loyalty in the retail supermarket industry. An empirical study was conducted in Grahamstown between two main supermarkets through a survey that determined customers’ perceptions on service quality, customer satisfaction and customer loyalty respectively. The empirical findings of this research study revealed that moderate to strong positive linear relationships exists between the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) and customer satisfaction at the 5% level of significance. Furthermore, this study showed that dimensions of service quality (namely physical aspects, reliability, personal interaction and problem solving) have weak negative linear relationships with price sensitivity dimension of customer loyalty. The study further showed that the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) have weak to moderate positive linear relationships with the purchase intentions dimension of customer loyalty. In addition, all the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) showed moderate positive linear relationships with word of mouth communication dimension of customer loyalty. A weak negative linear relationship between price sensitivity dimension of customer loyalty and customer satisfaction was revealed in this study. Purchase intentions dimension of customer loyalty was also found to have a moderate positive linear relationship with customer satisfaction. In addition, word of mouth communication dimension of customer loyalty showed a strong positive linear relationship with customer satisfaction. There is sufficient evidence that the customers of the two supermarkets in this study have different perceptions on problem solving dimension of service quality. This study further provides sufficient evidence of the significant difference between gender on the levels of customer satisfaction. In addition, this study showed that customers of various levels of education and occupations differ in price sensitivity dimension of customer loyalty. The average scores for word of mouth communication, purchase intentions and price sensitivity dimensions of customer loyalty were found to be significantly different between the two supermarkets investigated in this study. Therefore, for supermarkets to compete effectively in the intense retail supermarket industry in South Africa they have to manage their service quality dimensions so as to influence customer satisfaction and customer loyalty respectively.
- Full Text:
- Date Issued: 2014
- Authors: Ndhlovu, Thinkwell
- Date: 2014
- Subjects: Consumer satisfaction , Customer loyalty , Customer services -- Rating of , Customer services -- Quality control , Relationship marketing , Supermarkets -- South Africa -- Grahamstown
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1202 , http://hdl.handle.net/10962/d1013221
- Description: The increasingly competitive business environment has influenced contemporary organisations to build mutual beneficial relationships with their customers indicating a paradigm shift from transactional marketing. In order to compete in this intense competitive environment, organisations are creating competitive advantage over their rivals through service quality that will influence customer satisfaction which subsequently leads to customer loyalty. Service quality has been found to be the key strategy of success and survival for most organisations like retail supermarkets who want to win the loyalty of their customers because of its positive effect on customer satisfaction. The purpose of this research was to determine the relationship between service quality, customer satisfaction and customer loyalty in the retail supermarket industry. An empirical study was conducted in Grahamstown between two main supermarkets through a survey that determined customers’ perceptions on service quality, customer satisfaction and customer loyalty respectively. The empirical findings of this research study revealed that moderate to strong positive linear relationships exists between the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) and customer satisfaction at the 5% level of significance. Furthermore, this study showed that dimensions of service quality (namely physical aspects, reliability, personal interaction and problem solving) have weak negative linear relationships with price sensitivity dimension of customer loyalty. The study further showed that the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) have weak to moderate positive linear relationships with the purchase intentions dimension of customer loyalty. In addition, all the dimensions of service quality (namely physical aspects, reliability, personal interaction, problem solving and policy) showed moderate positive linear relationships with word of mouth communication dimension of customer loyalty. A weak negative linear relationship between price sensitivity dimension of customer loyalty and customer satisfaction was revealed in this study. Purchase intentions dimension of customer loyalty was also found to have a moderate positive linear relationship with customer satisfaction. In addition, word of mouth communication dimension of customer loyalty showed a strong positive linear relationship with customer satisfaction. There is sufficient evidence that the customers of the two supermarkets in this study have different perceptions on problem solving dimension of service quality. This study further provides sufficient evidence of the significant difference between gender on the levels of customer satisfaction. In addition, this study showed that customers of various levels of education and occupations differ in price sensitivity dimension of customer loyalty. The average scores for word of mouth communication, purchase intentions and price sensitivity dimensions of customer loyalty were found to be significantly different between the two supermarkets investigated in this study. Therefore, for supermarkets to compete effectively in the intense retail supermarket industry in South Africa they have to manage their service quality dimensions so as to influence customer satisfaction and customer loyalty respectively.
- Full Text:
- Date Issued: 2014
Customer relationship management practiced by KOSAB
- Authors: Felix, Amoah
- Date: 2011
- Subjects: Customer relations , Customer services , Consumer satisfaction , Customer loyalty
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8635 , http://hdl.handle.net/10948/d1008046 , Customer relations , Customer services , Consumer satisfaction , Customer loyalty
- Description: Customer relationship management (CRM) presents a new paradigm shift to the old traditional marketing strategies that are known and practiced by many organisations in South Africa and across the globe. Competition is not an excuse for failure anymore. Organisations that do not have any concrete strategies in dealing with the customer will not survive in the market. The ultimate goal of CRM is to enable organisations to forge closer ties with the customer so that a solid bond can be created to enhance loyalty and satisfaction. The goal for this research was to identify the CRM strategies used by a single organisation and thereafter suggest improvements to enhance customer loyalty. The results of the study could assist the management of the organisation to improve the CRM strategies which will hopefully enhance retention and prevent customer attrition. A literature review was conducted to unveil various elements of CRM, and strategies that can attract and retain customers. It helped in identifying themes for the empirical study. An in-depth interview was conducted with the general manager of the organisation to gauge his perception, and CRM practices in the organisation. An interview guide was used during the interview process. Four main topics namely: implementation of CRM, customer loyalty, customer complaints and conflict, and employees training and motivation were utilised for the interview guide and followed by further probing. Based on the responses obtained, analyses were made by comparing the responses to what literature revealed so that shortcomings could easily be identified.The study revealed that there were several inconsistencies with what was practised by the organisation and what the literature study revealed. Bearing in mind the shortcomings identified in the empirical study, the researcher made the following recommendations. The CRM implementation approach needs to be carefully planned with a clear defined vision and mission statement that focus on customer centredness. The organisation needs to invest in modern and innovative channels of communication and strategic partnership to reach the right customer. The organisation has to develop effective market segmentation and targeting to know the customer well. Consistent and highly relevant customer experiences should be drawn-on to fulfill the organisation’s promise of trust and reliability. The organisation should adopt competitive pricing strategy to limit customer sensitivity on price. The organisation should invest in employees’ development and welfare. Further research can be conducted to investigate the perception of other food retailers on the CRM strategies practiced. Further research can also be conducted in the organisation to investigate the perception of employees and customers on the CRM strategies practised.
- Full Text:
- Date Issued: 2011
- Authors: Felix, Amoah
- Date: 2011
- Subjects: Customer relations , Customer services , Consumer satisfaction , Customer loyalty
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8635 , http://hdl.handle.net/10948/d1008046 , Customer relations , Customer services , Consumer satisfaction , Customer loyalty
- Description: Customer relationship management (CRM) presents a new paradigm shift to the old traditional marketing strategies that are known and practiced by many organisations in South Africa and across the globe. Competition is not an excuse for failure anymore. Organisations that do not have any concrete strategies in dealing with the customer will not survive in the market. The ultimate goal of CRM is to enable organisations to forge closer ties with the customer so that a solid bond can be created to enhance loyalty and satisfaction. The goal for this research was to identify the CRM strategies used by a single organisation and thereafter suggest improvements to enhance customer loyalty. The results of the study could assist the management of the organisation to improve the CRM strategies which will hopefully enhance retention and prevent customer attrition. A literature review was conducted to unveil various elements of CRM, and strategies that can attract and retain customers. It helped in identifying themes for the empirical study. An in-depth interview was conducted with the general manager of the organisation to gauge his perception, and CRM practices in the organisation. An interview guide was used during the interview process. Four main topics namely: implementation of CRM, customer loyalty, customer complaints and conflict, and employees training and motivation were utilised for the interview guide and followed by further probing. Based on the responses obtained, analyses were made by comparing the responses to what literature revealed so that shortcomings could easily be identified.The study revealed that there were several inconsistencies with what was practised by the organisation and what the literature study revealed. Bearing in mind the shortcomings identified in the empirical study, the researcher made the following recommendations. The CRM implementation approach needs to be carefully planned with a clear defined vision and mission statement that focus on customer centredness. The organisation needs to invest in modern and innovative channels of communication and strategic partnership to reach the right customer. The organisation has to develop effective market segmentation and targeting to know the customer well. Consistent and highly relevant customer experiences should be drawn-on to fulfill the organisation’s promise of trust and reliability. The organisation should adopt competitive pricing strategy to limit customer sensitivity on price. The organisation should invest in employees’ development and welfare. Further research can be conducted to investigate the perception of other food retailers on the CRM strategies practiced. Further research can also be conducted in the organisation to investigate the perception of employees and customers on the CRM strategies practised.
- Full Text:
- Date Issued: 2011
A qualitative analysis of the need-satisfying experiences of the customers of a niche-restaurant
- Authors: Burger, John Michael
- Date: 2003
- Subjects: Consumer satisfaction , Diners restaurant -- Marketing , Customer loyalty
- Language: English
- Type: Thesis , Doctoral , DTech (Marketing)
- Identifier: vital:10767 , http://hdl.handle.net/10948/260 , Consumer satisfaction , Diners restaurant -- Marketing , Customer loyalty
- Description: Tradition dictates that marketing decision-makers remain accurately aligned with the dynamic and vacillating need structures of the target markets they serve. To comply with this caveat, a time-honoured and largely unchallenged philosophy of customer orientation has been applied. Theory further strongly contends that if such a business stance is vigilantly and diligently applied, any firm is bound to gain a competitive edge in the market place. A weakness in the above marketing mindset is the perception that when a spectrum of business elements are orchestrated and focussed on customers, target audience members will automatically be satisfied and return their patronage. This so-called marketing concept has undergone major reevaluations over the past decades, and it is now becoming ever more prevalent to witness varied permutations of new marketing architecture evolving in literature and practice. The unit of analysis selected for this research study is a niche restaurant that flouts many of the rudimentary traditional rules of marketing and iconoclastically succeeds despite all counter-logic. What such organisations have been practicing, albeit unknown to themselves, is a new way of business - a stance that has only recently been taken seriously by academics, writers and marketing professionals. These intuitive marketers are succeeding in niche businesses, despite going against the tide of the ingrained paradigm mindsets of conventional marketing stalwarts. Such niche business people have discovered is that there is more to satisfying consumer needs than simply honing in and understanding what the basic needs of designated audiences are. A growing band of new age marketers have been challenging orthodox marketing philosophy. Tofler, the visionary futurist, alluded to a host of unarticulated psychic consumer needs that would emerge as society drifted into a clinical and dispassionate ‘new’ millennium. In a world geared to instant gratification, fast-paced living and mechanistic social interactions, jaded consumers seek recognition as individuals (Tofler, 1970). They quest for inclusion rather than exclusion. They need a place to feel safe and find solace. Hence, it is now clear that simply attempting to satisfy the fundamental dimensions of consumers’ needs is no longer sufficient. Consumers rather seek the fulfilment of an holistic band of experience dimensions. Increasingly, phrases such as “winning consumer hearts and minds” are entering the vocabulary of marketers on a regular basis. The present vogue is to isolate and then include a range of intangible elements that are embodied in the process of satisfying customers needs. However, despite a growing awareness of the significance of mental-need satisfiers, in the specific domain of this investigation there is sparse evidence in literature of the mechanics of such novel thinking. The study unit is a second generation restaurant where many of the hollowed cornerstones of conventional marketing are inadvertently flouted. Different sets of rules of engagement seem to apply to their customers, who are also their most ardent advocates. A unique philosophy and business ethos also appears to prevail. In the study, the idiosyncratic characteristics which socially and competitively differentiate such a business were identified, explored and expiated. The constituents were then harmonised in an effort to establish what ‘it’ was that magnetically attracted patrons back despite the owner’s unintentional dismissive predisposition towards fundamental theory. As a result of this in-depth qualitative study, an holistic model encompassing all of the dimensions of a dining out experience at a niche restaurant have been proposed. Consequently the pillars upon which a sustained, enduring, loyal staunch customer base can be bed-rocked have been identified. Further, for the study unit, a typology of its diner corpse has been developed. The owners of the establishment under investigation have succeeded to provide an intimate family haven for their patrons. They, and their diners have collectively given strong, descriptive voice to the psychogenic need satisfying elements that have always existed, but to date have been unarticulated and unrecorded. This thesis brings the milieu of the iconoclast niche restaurant marketing practitioner to life.
- Full Text:
- Date Issued: 2003
- Authors: Burger, John Michael
- Date: 2003
- Subjects: Consumer satisfaction , Diners restaurant -- Marketing , Customer loyalty
- Language: English
- Type: Thesis , Doctoral , DTech (Marketing)
- Identifier: vital:10767 , http://hdl.handle.net/10948/260 , Consumer satisfaction , Diners restaurant -- Marketing , Customer loyalty
- Description: Tradition dictates that marketing decision-makers remain accurately aligned with the dynamic and vacillating need structures of the target markets they serve. To comply with this caveat, a time-honoured and largely unchallenged philosophy of customer orientation has been applied. Theory further strongly contends that if such a business stance is vigilantly and diligently applied, any firm is bound to gain a competitive edge in the market place. A weakness in the above marketing mindset is the perception that when a spectrum of business elements are orchestrated and focussed on customers, target audience members will automatically be satisfied and return their patronage. This so-called marketing concept has undergone major reevaluations over the past decades, and it is now becoming ever more prevalent to witness varied permutations of new marketing architecture evolving in literature and practice. The unit of analysis selected for this research study is a niche restaurant that flouts many of the rudimentary traditional rules of marketing and iconoclastically succeeds despite all counter-logic. What such organisations have been practicing, albeit unknown to themselves, is a new way of business - a stance that has only recently been taken seriously by academics, writers and marketing professionals. These intuitive marketers are succeeding in niche businesses, despite going against the tide of the ingrained paradigm mindsets of conventional marketing stalwarts. Such niche business people have discovered is that there is more to satisfying consumer needs than simply honing in and understanding what the basic needs of designated audiences are. A growing band of new age marketers have been challenging orthodox marketing philosophy. Tofler, the visionary futurist, alluded to a host of unarticulated psychic consumer needs that would emerge as society drifted into a clinical and dispassionate ‘new’ millennium. In a world geared to instant gratification, fast-paced living and mechanistic social interactions, jaded consumers seek recognition as individuals (Tofler, 1970). They quest for inclusion rather than exclusion. They need a place to feel safe and find solace. Hence, it is now clear that simply attempting to satisfy the fundamental dimensions of consumers’ needs is no longer sufficient. Consumers rather seek the fulfilment of an holistic band of experience dimensions. Increasingly, phrases such as “winning consumer hearts and minds” are entering the vocabulary of marketers on a regular basis. The present vogue is to isolate and then include a range of intangible elements that are embodied in the process of satisfying customers needs. However, despite a growing awareness of the significance of mental-need satisfiers, in the specific domain of this investigation there is sparse evidence in literature of the mechanics of such novel thinking. The study unit is a second generation restaurant where many of the hollowed cornerstones of conventional marketing are inadvertently flouted. Different sets of rules of engagement seem to apply to their customers, who are also their most ardent advocates. A unique philosophy and business ethos also appears to prevail. In the study, the idiosyncratic characteristics which socially and competitively differentiate such a business were identified, explored and expiated. The constituents were then harmonised in an effort to establish what ‘it’ was that magnetically attracted patrons back despite the owner’s unintentional dismissive predisposition towards fundamental theory. As a result of this in-depth qualitative study, an holistic model encompassing all of the dimensions of a dining out experience at a niche restaurant have been proposed. Consequently the pillars upon which a sustained, enduring, loyal staunch customer base can be bed-rocked have been identified. Further, for the study unit, a typology of its diner corpse has been developed. The owners of the establishment under investigation have succeeded to provide an intimate family haven for their patrons. They, and their diners have collectively given strong, descriptive voice to the psychogenic need satisfying elements that have always existed, but to date have been unarticulated and unrecorded. This thesis brings the milieu of the iconoclast niche restaurant marketing practitioner to life.
- Full Text:
- Date Issued: 2003
The use of strategies to promote and market products and services online as well the use of customer relationship management to attract and retain customers
- Authors: Cohen, Howard
- Date: 2003
- Subjects: Internet marketing , Customer relations -- Management , Consumer satisfaction , Customer loyalty
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10862 , http://hdl.handle.net/10948/270 , Internet marketing , Customer relations -- Management , Consumer satisfaction , Customer loyalty
- Description: The Internet has provided marketing with many new tools and given old tools new or improved meanings. The Net poses tremendous challenges for scholars in many lines of research, from usability studies and consumer behaviour research to marketing and advertising research. Because the World Wide Web (the Web) presents a fundamentally different environment for marketing activities than traditional media, conventional marketing activities are being transformed, as they are often difficult to implement in their present form. This means that in many cases these marketing activities have to be reconstructed in forms more appropriate for the new medium. A lot of technological changes have affected the marketing environment of today. Companies must adapt to these changes in order to improve their marketing strategies. This has, among other things, resulted in an emphasis on relationship marketing. The purpose of this thesis is to explore what strategies are used in practice by companies in order to market and promote their products and services by using their Web sites as well as to build effective Customer Relationship Management (CRM). In order to fulfil the research purpose, interviews were conducted at a number of companies (medium and large), and questionnaires were mailed to various companies in the motor retail industry. The result shows that a company can use traditional as well as online marketing and promotion strategies when conducting business. This can also help companies to gain better relations with their customers. The different marketing and promotion strategies are useful for attracting new business as well as maintaining and stimulating existing relations. The research problem addressed in this study was to determine the factors that are effective in marketing and promoting of Web sites as well as the methods used in building CRM.
- Full Text:
- Date Issued: 2003
- Authors: Cohen, Howard
- Date: 2003
- Subjects: Internet marketing , Customer relations -- Management , Consumer satisfaction , Customer loyalty
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10862 , http://hdl.handle.net/10948/270 , Internet marketing , Customer relations -- Management , Consumer satisfaction , Customer loyalty
- Description: The Internet has provided marketing with many new tools and given old tools new or improved meanings. The Net poses tremendous challenges for scholars in many lines of research, from usability studies and consumer behaviour research to marketing and advertising research. Because the World Wide Web (the Web) presents a fundamentally different environment for marketing activities than traditional media, conventional marketing activities are being transformed, as they are often difficult to implement in their present form. This means that in many cases these marketing activities have to be reconstructed in forms more appropriate for the new medium. A lot of technological changes have affected the marketing environment of today. Companies must adapt to these changes in order to improve their marketing strategies. This has, among other things, resulted in an emphasis on relationship marketing. The purpose of this thesis is to explore what strategies are used in practice by companies in order to market and promote their products and services by using their Web sites as well as to build effective Customer Relationship Management (CRM). In order to fulfil the research purpose, interviews were conducted at a number of companies (medium and large), and questionnaires were mailed to various companies in the motor retail industry. The result shows that a company can use traditional as well as online marketing and promotion strategies when conducting business. This can also help companies to gain better relations with their customers. The different marketing and promotion strategies are useful for attracting new business as well as maintaining and stimulating existing relations. The research problem addressed in this study was to determine the factors that are effective in marketing and promoting of Web sites as well as the methods used in building CRM.
- Full Text:
- Date Issued: 2003
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