01-01-2013, 11:26 AM
CUSTOMER SATISFACTION WITH SUPERMARKET RETAIL SHOPPING
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Abstract
We investigated the customer ratings of importance of several attributes associated with
supermarket 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. The
findings 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 have
become very standardised, corporate reputation is rated high and may be a source of
sustainable competitive advantage. Accessibility was considered important, as was quality of
service especially the friendliness and efficiency of checkout personnel. The results suggested
the 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 be
susceptible 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. For
supermarket retailers wanting to build relationships with their customers, being able to track
their levels of ‘satisfaction’ with the key elements of the supermarket environment is
extremely important. From the retailer’s perspective the aim is to minimise the reasons for
complaints and dissatisfaction and the cost of a service recovery plan (McCollough, Berry and
Yadav, 2000) whilst establishing a track of direct feedback from customers about their
reactions to those key elements.
Satisfaction is a consumer’s post-purchase evaluation of the overall service experience. It is
an affective reaction (Menon and Dubé, 2000) in which the consumer’s needs, desires and
expectations 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 met
the customer’s expectations, not exceeded nor disappointed those expectations. The benefits
of taking the customer’s response beyond satisfaction at this level by exceeding expectations,
is a competitive strategy many retailers aspire to achieve.
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 most
significant features of the total product is the place where it is bought or consumed. “The
atmosphere 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 to
design 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 of
“atmospherics” in a service setting. Servicescapes also adds the notion of the service
personnel to physical setting (Bitner, 1992). Bitner elaborates on the neglect of the
servicescape as follows: “The effect of the atmospherics, or physical design and décor
elements, on customers and workers is recognised by managers and mentioned in virtually all
marketing, retailing, and organisational behaviour texts. Yet, particularly in marketing, there
is a surprising lack of empirical research or theoretically based frameworks addressing the
role of physical surroundings in consumption settings. The servicescape is describe as
covering such elements as physical layout of the service facility, ambience, background music
and that the servicescape can also affect customer’s impressions of and satisfaction with
service” (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 Bitner
1996). Service quality can be measured by the level of discrepancy between consumer
expectations or desire and their perceptions of what they received as described by the
SERQUAL scale (Bebko 2000). Customer satisfaction occurs when the value and customer
service provided through a retailing experience meet or exceed consumer expectations. If the
expectations 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 shop
elsewhere (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 the
long run.
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 ranging
from 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 the
scales had reliabilities above .75, which exceeds the recommended level of .7 (Nunnally
1978). The respondents were asked to rate the importance of each item and then to rate how
satisfied 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 various
items. The most important factors are store reputation for ethical business practices, food
handling and environment. This was followed closely by accessibility (parking) and then
customer service and product range and depth. A comparison of the postcodes indicated there
were differences in what was considered important but the pattern of rankings was
maintained.
Conclusion
These findings point to several implications for managers. Reputation is important whether it
is for quality, for cleanliness or for freshness of produce. People care about reputation as a
differentiator since most retailing is otherwise very similar. Access to the retail is important.
This might refer to availability of parking and the associated costs. Some factors indicated as
not important are possibly taken for granted. Businesses need to go beyond satisfaction to
attract and retain customers. Customers have become very demanding; hence the low scores
on most satisfaction measures. Large self-service retail chains cannot ignore the importance
placed by customers on the attribute of service quality. Customers value friendliness and
caring treatment and to succeed there is need to provide these especially in competitive
market. The results suggest customer service, might be an important antecedent to customer
loyalty and future patronage. In addition to gaining feedback on attributes of customer
satisfaction further work needs to be undertaken in the retail industry to better understand the
relationship between the store preference, perceived satisfaction and service quality. The retail
outlets chosen were representative of the retail landscape of Australia, the sample sizes were
large, and the measurements exhibited high reliability, and hence the results could be
generalisable.