Customer satisfaction

ABSTRACT

The business world is dynamic but in all the business industry there is one common thing "customer satisfaction". The success of business depends on customer satisfaction. Another way author want to say that customer satisfaction is a key for success in all kind of business. Because the satisfied customer becomes loyal to the business and a loyal customer brings many more customers, which provides more and more customers to the business.

Because of that reason, the author has selected the topic "Customer Satisfaction in Utah's Grocery Store". Through this topic the author wants to learn how to measure customer satisfaction, what kind of factors affect the customer's satisfaction in the grocery business and what are the customer's expectations. So when the author works in that field in the future this thing helps in professional life.

Chapter 1: Customer Satisfaction on Utah's grocery stores

Purpose of Research

The main purpose of the research is to find out the customer satisfaction level in Utah's grocery stores and based on that data try to find out what the different organizations are need to do increase the customer satisfaction level in their stores and provide better service , better product selection to their customers, satisfying their needs etc.

Customer Satisfaction

Customer satisfaction is a measurement of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business.

In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

Important of Customer Satisfaction

Organizations are increasingly interested in retaining existing customers while targeting non-customers. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace.

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products.

Role of Customer Satisfaction survey

Knowing what customer truly needs is critical to retain customers and keep maintaining profits. When company invests huge amounts for increase the sales and to provide better customer service they want to create loyal and happy customers. And through the survey, company able to identify the needs, wants and the expectations of the customers, which helps them to maximize customer satisfaction and retention. Most importantly, a well done customer satisfaction survey will arm company with valuable information needed to ensure hard-earned customers to not go elsewhere.

Criteria For Measuring Customer Satisfaction.

When it comes to customer satisfaction, we all know that customer satisfaction is a huge concept. So the question is on what basis are we going to measure customer satisfaction.

On this project when it comes to customer satisfaction, we mean overall satisfaction, customers overall visit or buying experience in store. The author want to know that after their first visit to the store, do they want to come back to that particular store and would they want o recommend this store to their friends to shop.

So when it comes to customer satisfaction we are going to consider all the factors which play an important part in any customer's visit, such as price of the product, quality of the product all the Varity of the products available inside the store , is the store clean or not, how are the employees? Are they knowledgeable about the product they offer, are they are helpful of not? How about the check out time, is it time consuming? If a customer wants to return any product how is the return process and what is the reason to return the product? parking space and some other additional facility available inside the stores like banking and pharmacy etc. on the basis of all this factors we gone measure the overall customer satisfaction level.

Organization of Research

When it comes to the selection of organization for customer satisfaction it's a very hard to select best and different competitor store. But for this project the author has selected two stores: Harmons, Your Neighborhood Grocer and Smith's food and drug store. The author has selected these two stores because the Harmons is a local association based private store while Smiths is a big store by Kroger company. And they both have different concept and different product selection etc.

Chapter 2 Literature Review

Mission of Harmons

To value over associate and exceed their customer's expectations

Vision for Harmons

Be remarkable, people will be disappointed shopping anywhere else.

Mission of smiths

To be a leader in the distribution and merchandising of food, pharmacy, health and personal care items, seasonal merchandise, and related products and services.

Measurement of customer satisfaction

Customer satisfaction can be measured in two ways. The first measure consists of response to a single question on a customer satisfaction questioner. Overall, how satisfied are you with the store? Response for all satisfaction questions starts with the very satisfied and ends with the very dissatisfied.

The second indicator of customer satisfaction is satisfaction with the service and satisfaction with the price which measured service index and price index theories. This theory states that the value is a function of perceived quality and price and that differing levels of perceived value results in differing levels of customer satisfaction.

The American Customer Satisfaction Index (ASCI) model

This model explains how the different factors like perceived quality and customer expectation affects the customer satisfaction. And how important customer satisfaction is to win customer loyalty.

Expectation's Effect on Customer Satisfaction.

This bar chart explains how the direct effects of expectation affect customer's satisfaction in different industries.

Effect of Price and Quality on Customer Satisfaction

Statistical Summary of Salt Lake Market

A Newspaper Agency Corporation studied the Salt Lake market to arm their advertisers with superior information about the shopping activities of Salt Lake's consumer. They included in this statistical summary the most up to date information available in the salt lake market from the best possible sources available in 1999.

The 1999 study highlights shopping and purchasing behavior intention and the attitude of adults in the salt lake primary market area (comprised of 628,000 adults in salt lake and southern Davis Counties). A random sample survey design included an in-depth phone interview of 1,205 respondents, followed by a mailed self administrated questionnaire.

This survey results are as follows.

How to read: Twenty-two percent of the salt lake market adults did most of their grocery shopping at smiths in the last 12 months. Another 21 percent bought some of their grocery at Smiths for total of 42% of adult shopping there is the last 7 days. Note: Due to rounding, adding primary and secondary market shares may not equal total market share.

How to read: This shows the percentage of a store's primary shoppers who have not shopped at any other grocery stores in the last seven days. For example, 43 percent of the shopper who did most of their shopping at Smiths did not shop at any other stores.

How to read: This table shows the percentage of each store's primary shoppers who also shop at the other stores. For example, 21 percent of the adult who did most of their shopping at Harmon's also shopped at smiths.

Chapter 3 Research Methodology

All the business companies want to know how they are doing and what their customers think of their products and the services. Because no business can survive without customer .So it is very important to know if their customers are satisfied or not. Because of this the companies need to use different types of research methods.

Research means the systematic objective and exhaustive search for and study of a fact related to any problem faced by the organization. In other words, research is the systematic design, collection, analysis and reporting of data and findings related to a specific situation faced by the company.

Research methodology is the process of collecting data for a research. There are different types of method for data collection, such as the Observation method, Field experiments, Laboratory experiments, and the most popular survey method.

Survey method is the most popular method to know customer satisfaction. Through the survey method, we can collect all quantitative and qualitative information. There are different ways for survey. We can do the survey by creating a questioner and with the help of that questioner we can do an online survey, Field survey or Mail survey. Or there is another method for data collection that is the Interview method.

For this project, to know the customer satisfaction the author has selected the online survey method and field survey method. And for the survey method author created the questioner which includes 15 questions for the customers, which helps to find out what customers like about the stores and what they don't like about the store and what kind of changes the stores need to make according to customers suggestions. And the questions for survey are as follows:

  1. How often do you find what you are looking for when you shop at this store?
    • Often
    • Some times
    • Never
    • Don't know
  2. How knowledgeable do you find the sales staff about the products they sell?
    • Very knowledgeable
    • Somewhat knowledgeable
    • Not at all knowledgeable
    • Don't know
  3. How comfortable are you shopping at this store?
    • Very Comfortable
    • Somewhat Comfortable
    • Somewhat Uncomfortable
    • Not At All Comfortable
    • Don't Know
  4. Do you find the price competitive at this store?
    • Very Competitive
    • Somewhat Competitive
    • Not Very Competitive
    • Not At All Competitive
    • Don't Know
  5. This store is clean and well organized.
    • Strongly Disagree
    • Disagree
    • Undecided
    • Agree
    • Strongly Agree
  6. This store is well stocked.
    • Strongly Disagree
    • Disagree
    • Undecided
    • Agree
    • Strongly Agree
  7. The sales staff at this store is friendly and helpful.
    • Strongly Disagree
    • Disagree
    • Undecided
    • Agree
    • Strongly Agree
  8. Have you ever made any returns to this store?
    • Yes
    • No
  9. How easy was it to return or exchange items at this store?
    • Very Easy
    • Somewhat Easy
    • Easy
    • Difficult
    • Very Difficult
    • Don't know
  10. What was the main reason for your most recent return?
    • Quality not as Expected
    • Found Same Item for Lower Price
    • Item Defective
    • Wrong Size, Color, etc
    • Others
  11. How do you find the store hours fit to your schedule?
    • Very Satisfied
    • Somewhat Satisfied
    • Satisfied
    • Somewhat dissatisfied
    • Very dissatisfied
  12. How is the availability of parking at this store?
    • Very Satisfied
    • Somewhat Satisfied
    • Satisfied
    • Somewhat dissatisfied
    • Very dissatisfied
  13. What do you like most about this store?
  14. Comments:

  15. What do you like least about this store?
  16. Comments:

  17. What, if anything, they can do to improve your shopping experience at this store?

Comments:

http://www.surveyshare.com/templates/storeevaluation.html

Chapter 4 Analysis and Findings

  1. How often do you find what you are looking for when you shop at this store?
  2. The reason for asking this question is to know how the stores are maintaining their inventory and their product selection. Are they able to bring new products or not.

    And 72.20 percent of the customers who shop at smiths say that often they find what they are looking for and 56.60 percent of the customers who shop at Harmons say that often they find what they are looking.

  3. How knowledgeable do you find the sales staff about the products they sell?
  4. The main reason for asking this question is to find out how knowledgeable sales staffs are about the products available in their stores, so that they can help the customers find the products that they are looking for.

    When the author asked this question to the customers of Smiths store 24.10 percent of the customers say the sales staff is very knowledgeable and 46.30 percent of customers say that the sales staff are somewhat knowledgeable.

    When the author asked this question to the customers of Harmon's store, 56.50 percent of the customers say that the sales staff is very knowledgeable and only 26.10 percent of the customers say that the sales staff is somewhat knowledgeable.

  5. How comfortable are you shopping at this store?
  6. The reason to ask this question to the customers is to find out how they feel about the store. This includes service, safety and atmosphere inside the store.

    When the author asked this question to the customers of Smiths stores, 62.30 percent of the customers say that they feel very comfortable shopping at the store and only 1.90% of customers say that they don't feel comfortable shopping at the store.

    When the author asked this question to the customers of Harmon's stores, 52.20 percent of the customers say that they feel very comfortable during shopping at the store and only 4.30 percent of the customers say that they don't feel comfortable during shopping at the store.

  7. Do you find the prices Competitive at this store?
  8. The main reason for asking this question is to find out, are the customers satisfied with the prices or not. Because when it's come to satisfaction price plays very important role.

    So, when the author asked this questions to the customers of the Smiths stores, 24.10 percent of the customers say that prices are very competitive, 57.40 percent the customers say they are somewhat competitive and 3.70 of the percent customers say they are not at all competitive.

    And when the author asked this question to the customers of the Harmon's stores only 13 percent of the customers say that prices are very competitive, 43.50 percent of the customers say they are somewhat competitive and 8.70 percent of the customers say they are not at all competitive.

  9. This store is clean and well organized.
  10. The reason for asking this question is to know if the store is well cleaned or not because they sell food products in the store. When it comes to a well organized store, it's come to customer's safety. If store is well organized it make it easy for customers to find the product they are looking for.

    66.70% of customers agree and 20.40% strongly agree who shopped at Smiths, and 22.70% of customers say they are agree with the question and 54.50% of customers say they strongly agree who shopped at Harmons .

  11. This store is well stocked.
  12. When the author asked this question to the people who shopped at Smiths, 63% agree and 16.70% of customers say that they strongly agree and only 3.70% of customers say they strongly disagree with the question.

    When the author asked this question to the people who shopped at Harmons 43.50% agree and 39.10% of customers say that they strongly agree.

  13. The sales staff at this store is friendly and helpful.
  14. When the author asked this question to the people who shopped at Smiths, 50.90% agree and 20.80% of customers say that they strongly agree and only 3.80% of customers say they strongly disagree with the question.

    When the author asked this question to the people who shopped at Harmons 47.80% agree and 34.80% of customers strongly agree and no one says that they strongly disagree with the question.

  15. Have you ever made any returns to this store?
  16. This question is very important from the point of view of satisfaction. If a customer is satisfied with the product and price that they paid, they will not need to return any product.

    58.50 % of customers said that they never returned a product at Smiths.69.60% of customers said that they never returned any product at Harmons.

  17. How easy was it to return or exchange items at this store?
  18. When the author asked this question to the customers of both stores, more than 50% of customers say that they don't know about the return process because they never return anything.

    21.10% customers said it's very easy to return or exchange a product at smiths. And 21.70% of customers said that it's very easy to return and exchange a product and Harmons.

  19. What was the main reason for your most recent return?
  20. There are so many different reasons for returns but the most common reason for both stores is that they get the wrong size or the wrong color.13.30% of smith's customers said that the product was not good or that it was defective and 10% of customer of Harmons store said that the product was defective.

    Around by 50% of customers say other and its means most of the customers never return anything at either store. A few customers said that they had been charged the wrong price.

  21. How do you find the store hours fit to your schedule?
  22. When the author asked this question to the people who shopped at Smiths 65.90% say they are very satisfied with store hours and 22.70% of customers says that they are somewhat satisfied.

    When the author asked this question to the people who shopped at Harmons, only 43.50% of customers said that they are very satisfied with store hours and 30.40% of customers said that they are somewhat satisfied, while 4.30% of customers said that they are very dissatisfied with store hours.

  23. How is the availability of parking at this store?
  24. When the author asked this question to the customers of both stores, more than 60 percent of customers are very satisfied with the parking facilities. And only 18.20 percent of Smiths customers and 13 percents of Harmon's customer said they are somewhat satisfied while 2.30% of customers who shopped at Smiths said they are not satisfied with the availability of parking space at stores.

  25. What do you like most about this store?

Chapter 5 Conclusion

Through this project, the author had a chance to learn many of things. Through this project, the author learned about customer satisfaction and how important it's for business. Also, what factors affect customers' satisfaction and what the stores need to do to satisfy their customers.

Through this project, the author found that there are so many factors such as, customers perception about the stores, their expectations, and their financial condition and there are also many other factors which affects the satisfaction of the customers.

Through this survey, the author found that both stores are doing very well, but they just need to improve their services in few things like

Smiths

  1. Needs to improve quality of meat
  2. Make sure it is always well stocked
  3. Needs more employees
  4. Bigger product selection

Harmons

  1. Lower the prices.
  2. Need better weekly Advertisements.

Overall, the author found that both stores are doing well.

References

  • Harmons History, Retrieved From http://www.harmonsgrocery.com , Retrieved on October 16
  • Mission and vision, Retrieved From http://www.harmonsgrocery.com , Retrieved on October 16
  • Smiths History, Retrieved From http://www.fundinguniverse.com/company-histories/Smiths-Food-amp;-Drug-Centers-Inc-Company-History.html, Retrieved on October 16
  • Smiths History, Retrieved Fromhttp://www.referenceforbusiness.com/history2/30/Smith-s-Food-Drug-Centers-Inc.html, Retrieved on October 16
  • David B. Dillon, Chairman and Chief Executive Office, Smiths Ethics and Policy, Retrieved From http://www.thekrogerco.com/documents/EthicsPolicy.pdf , Retrieved on October 16
  • Salt Lake Tribune and Deseret Morning News, Newspaper Agency Corporation, Statistical Summary of Salt Lake Market, Retrieved from http://www.nacorp.com/NAC2/pdf/Grocery.pdf, Retrieved on November 4
  • Fornell Claes, Johnson, Michael D, Anderson, Eugene W; Cha, Jaesung, Bryant, The American Customer Satisfaction Index: Nature, purpose, and findings, Journal of Marketing; 1996, Retrieved from http://triton.nfh.uit.no/dok/fornell-1996.pdf Retrieved on December 2.
  • J. Joseph Cronin, Florida State University, Michael K. Brady, Boston College, G.Tomas M.Hult,Florida State University, Assessing the Effects of Quality, Value, and Customer Satisfaction on Consumer Behavioral Intentions in Service Environments Retrieved from http://global.broad.msu.edu/hult/publications/JR00.pdf Retrieved on December 3.
  • Roger Hallowell, Service Management Literature (Heskett et al., 1994; Schneider and Bowen, 1995) http://voci.com.au/documents/link_between_profit_and_customer_satisfaction.pdf Retrieved on December 3.
  • Ellen Garbarino, Mark S Johnson, Journal of Marketing, The different roles of satisfaction, trust, and commitment in customer relationship, retrieved from http://cehum.uab.es/docs/paper7.pdf Retrieved on December 3.
  • Thomas O. Jones and W.Earl Sasser, Why Satisfied Customer Defect, Harvard Business Review, November-December 1995, retrieved From http://faculty.bschool.washington.edu/ryalch/NSTU/Why%20Satisfied%20Customers%20Defect.pdf on December 4.

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