Supermarkets

Literature Review

As companies/supermarkets have race to introduced technology that enables the customers to get service on their own (Marry Jo Bitner, Amy L. Ostrom and Matthew L. Meufer 2002). Growing number of customers interacted with the technology to create service outcomes instead with a service firm employee (Matthew L. Amy L. Ostrom, Robert I. Roundtree, Marry Jo Bitner July 2000). The overall affect model is based on the consumer's feelings toward the use of technology (Pratibha A. Dabholkar 1996). The Supermarkets which introduce self-service checkout systems wish to gain rapid acceptance and usage of these technologies by potential consumers. (Jungki Lee, Arthur Allaway 2002)

According to Merriam-Webster's Dictionary (2008), Innovation is “a new idea, method or device, or the introduction of something new.”Drejer (2002) argues that innovation is more than just invention, that idea cannot be innovative as a pure, it must be put in practice and be commercialized; otherwise it is too earlier to speak of innovation. Blackmon (1996) provide us with the best summary for a context of this research: “… technological change is used to describe changes in knowledge that increase the volume of output or allow a qualitatively superior output from a given amount of resources … and thus in driving organizational evolution …” The sales profit is a simple conceptual framework chain to linking with the employee satisfaction as well as customer satisfaction and financial performance. This sales profit chain is the relationships between employee and customer satisfaction. (Gary W. Loveman1998). The benefit of the customer retention and satisfaction has been characterized by using the repurchase intention or a factor score of quite a few measures repurchase goal, and price tolerance. So that the purpose to use the customers management strategy that is the based on managing both satisfaction and benefit of customer retention. (Das Narayandas 1998). Performance expectation and the actual performance have major significance in the Evaluation process, as we need to determine the dimension of product and service performance. Most customers do not switch from satisfied seller to their competitors, but, there are several factors that could affect customer behaviour to switch to different service provider such as mistake in core service failure, service encounter failures, variable prices, inconvenience, responsive to service failures, attraction by competitors, ethical behaviours and involuntary switching etc.(Hawkins, Best, Coney, “Consumer behaviour” 2004) Retailers need to analyze what makes a new product from the point of view by the customer if customers facing problems understanding the reason behind the introduction of new self-service checkout systems (SSC) they will not use the system. As we launch new self-service systems, we need to analyse the consumer behaviour as well. The consumer should be involved in some way or another at most stages in the introduction of self-service checkout system. Every retail or sales companies should take care of customer wants and needs. (Ray Wright, “Consumer behaviour”, 2006)

Consumers feel a sense of pleasure in understanding that they have found a unique store that they can, and do, frequent. This suggestion is suggested on the notion of value as a function of both worth (Oliver, 1999) and scarcity. People feel good when they find something of worth that is not easily available the feel good feeling from the ordinary and the mundane, is different from satisfaction in that it consists qualitative effects such as enjoyment and happiness. In contract, satisfaction is an evaluative judgment (Oliver, 1997) and more cognitive in nature (Howard & Sheth 1969).

Satisfaction can be defined as a cognitive evaluation resulting from the fulfilment expectations. Satisfaction is a judgment based on either a cognitive or emotional appraisal, made by the customer whether his or her expectations were met (Oliver, 1997). Positive affect is a pleasurable emotional response (Bogozzi, Gopinath, & Nyer, 1999).

“If organizations want to consider total customer experience, satisfaction by itself is a weak measurement...” (Barlow & Maul, 2000, p.112)

As a result, when a consumer experiences more differentiation value in the store, consumer will be more likely to feel more positive responses toward the store (Holbrook & Hirschman, 1982)

The literature in retailing and customer behaviour has identified commitment as one's “motivation” to keep a relationship with the retailer (Bendapudi & Berry, 1997; Fournier, 1998).The foreword of self-service technologies (SSTs) into the service come across necessitates research to improved understand customers' attitudes toward overhaul providers and technologies, and their intentions to employ technology-based facility delivery systems. In this research, the authors build up and experiment three structural models that include a pecking instruct of consumer attitudes toward together the interpersonal and the technological aspects of the come across to better appreciate their intentions to utilize Self Service Technologies. The result indicates that intentions to exercise self-service technologies options are ambitious by manifold, hierarchical attitudes. In calculation to the direct belongings of attitudes toward exact self-service technologies and individual employees, the findings corroborate that higher direct worldwide attitudes toward service technologies pressure intentions to use self-service technologies. fascinatingly, the findings indicate that heavy self-service technologies users rely more on attitudes toward specific self-service technologies than do light self-service technologies users, who rely more heavily on universal attitudes toward self-service technologies when formative intention to utilize an self-service technologies. (James M. Curran, Matthew L. Meuter & Carol F. Surprenant, “Intentions to Use Self-Service Technologies: A Confluence of Multiple Attitudes, Journal of Service Research, Vol. 5, No. 3, 209-224(2003)”)

Customer retention:

Past research on the reimbursement of customer retention has been pigeonholed by the lack of a psychometrically sufficient criterion. Research has first and foremost operational zed the assistance of customer retention by using only repurchase target or a factor achieve of several method including repurchase intent, word of lips, and price forbearance. In the process, it has mistreated the option of a hierarchical command of the benefit of customer retention measures that would guide to a one-dimensional and growing benefit of customer retention scale. In this editorial, the authors investigate this issue by means of a set of intent measures urbanized based on past effort in customer retention and satisfaction. As hypothesized, support is established for a one-dimensional and cumulative promote of customer retention scale. The authors also examine how firms can use promote of customer retention the length of with satisfaction to monitor and handle customers. They suggest that vendors use a customer managerial strategy that is based on direction both satisfaction and Benefit of customer retention. (Das Narayandas, “Measuring and supervision the reimbursement of Customer Retention: Journal of Service Research” Vol. 1, No. 2, 108-128(1998))

Kano Model Analysis:

The Kano Model of Customer Satisfaction describes merchandise attributes base on how they are obvious by customers and their consequence on customer satisfaction. These categories are helpful for supporting design decisions in that they indicate when good is good enough, and when more is better. The Kano Model of Customer satisfaction divides merchandise attributes into three categories: threshold, performance, and excitement.

(David G, Ullman. The Mechanical Design Process, McGraw-Hill, Inc., U.S.A., 1997 p.

105-108)

Threshold Attributes

Threshold attributes are the customary attributes of a product, and do not provide a chance for product differentiation, and, the deficiency or poor performance of these attributes results in severe customer dissatisfaction. (European Media Management Review, Winter 1999)

Performance Attributes

Performance attributes are that for that extra is generally better, and will get better customer satisfaction. These attributes will form the biased needs against which invention concepts will be evaluated. The price for which customer is agreeable to pay for a product is closely fond of to performance attributes. (European Media Management Review, Winter 1999)

Excitement Attributes

Excitement attributes are unforeseen by customers but can result in elevated levels of customer satisfaction; however, their absence does not lead to displeasure.

(Randy, Jacobs, evaluate Satisfaction with Media Products and Services: An Attribute Based Approach, European Media Management Review, Winter 1999)

Other Attributes

Products often have attributes that cannot be confidential according to the Kano Model.

These attributes are often of no effect to the customer, and do not cause into consumer decisions.

(http://www.aspireconsultingllc.com/images/diagram_KanoModel.gif Accessed on the 27th Dec, 2009)

Customer point of view in relation to Self Service Checkout System (SSC)

Consumers are adapting to self-service payment options more quickly than some industry experts prophesied.

Reasons for Supermarket to adopt this technology:

- Some customers feel it is safer to keep possession of their cards at all times.

- Queue awaiting time reduction;

- Need for self-service;

- Quick payment;

- Shoppers feel empowered;

- Retail market is shifting towards radio frequency identification which will replace the bar code.

However this might be a foundation for increasing working hours, as supermarkets not depending on a cashier. Due it is not many research have been done in the UK the USA practise might be relevant for this research and will be in future referred as a compare base.

Theoretical Framework

Porter's competitive advantage theory is classical and one of the foundational in business literature, however lately it was criticized by some authors (Day and Wensley, 1988 and Hunt and Morgan, 1995). Therefore some complementary concepts have been suggested.

In order to reinforce research the Porter's value-chain theory was complemented with the more current Value-Network model of Stabell and Fjeldstad (Stabell and Fjeldstad, 1998). Value-chain theory and the value network model are presenting the different activities of a company where value can be cond and added through Self Service Checkout (SSC) systems. This model allows the researchers to investigate the different activities of companies on which the implementation of technology-based self-service as an innovation can have an effect.

In the theoretical frame it is important to mention the role of customers and customer relationship management.

Theoretical framework implication

In order to fully understand the impact of introducing Self Service Checkout system (SSC) in supermarkets it necessary to look into: role and importance of innovation in a business context, product life cycle connected to SSC; competitive advantage theory and complementary concepts, value chain theory.

Innovation

Before we are going to analyze stage it is important to understand what innovation in business context is. The full understanding can be obtained through definition of the term.

According to Merriam-Webster's Dictionary (2008), Innovation is “a new idea, method or device, or the introduction of something new.”

Drejer (2002) argues that innovation is more than just invention, that idea cannot be innovative as a pure, it must be put in practice and be commercialized; otherwise it is too earlier to speak of innovation.

Blackmon (1996) provide us with the best summary for a context of this research: “… technological change is used to describe changes in knowledge that increase the volume of output or allow a qualitatively superior output from a given amount of resources … and thus in driving organizational evolution …”

Otherwise the innovation in business context is a product, device, service, programme, service provider, or methods of service delivery that are new, unusual, or in other ways different from those previously used and positively reflects in overall output of the organization in form of added value directly to the organization or its customers. In the case of this research, innovation in form of SSC brings changes into service delivery.

In order to understand the impact of the innovation it is necessary to understand to which area of service delivery it related.

Dabholkar (2003) made a classification of technology in service delivery with three dimensions.

• by whom the service is delivered and who operates the technology;

• where the service is delivered (at the shop or in customers' home);

• And how the service is delivered.

Depending on which category the service belongs to different factors will affect the customer's evaluation of the service quality. This classification can be useful in guiding companies in the development of their marketing strategies when implementing Self Service Checkout System (SSC) systems.

At service site

At customer's place

Direct contact

Customer goes to service site and performs service using technology at service site. E.g. ATM, self-service at retail checkouts.

Customer uses technology from home/office to perform service. E.g. internet shopping.

Indirect contact

Customer goes to service site and uses automated telephone system to perform service. E.g. automated wake-up calls at

Hotels.

Customer calls automated telephone service from home/office to perform service. E.g. automated ticket-ordering over telephone.

Table

Source: Dabholkar, 1994 in Anselmsson, 2001, page 13.

Shadowed cell is the relevant technology for this research. Using this type of SSC, the customer goes to the service site and performs the service using technology provided at the service site. This implies a greater importance and wider range of quality issues in the interactive marketing function.

Product/service life cycle

In a business context everything is going through different level, stages of performance. It is similar to the any life development. From the cell of life to the maturity and death, the products are repeating same way from idea to functioning and ultimately death. Particularly in our case the service as well as product must be planned and introduce to employees, customers and eventually be accepted by them. It is crucial for the managers to adjust and control its performance while it goes through different stages. The effect respectively will be also different on different stages. Therefore, considering the life cycle of SSC systems is important when investigating the effects on company competitiveness.

In the manufactured goods life cycle, products tend to go throughout five stages:

• Product/service development;

• Market introduction;

• Growth stage;

• Mature stage;

• Stage of decline.

Each stage is different in effectiveness of the product, expenses, revenue, etc. The first stage usually money intensive as there is no sales revenue and all expenses are covered by different organization's activities, in our case no effectiveness gain from reducing cost of operation. Stage two is quite expensive in our case as technological cost is very high. The purchase of the machineries and shop's infrastructure adjustments to accommodate it are required. Moreover the staff and customer's trainings and special promotions materials must be prepared. The third stage is continuous use of Self Service Checkout Systems (SSC) by customers and therefore operational cost reduction becomes positive revenue, which might cover the marketing expenses. The fourth stage is characterised by very low costs of operation as number of customers who is using it increased. The final stage might come as soon as more efficient and productive technology will arrive and current become outdated. (Day, 1981)

The progression of a product through these stages is not certain however. Some products may stay in the mature stage forever, for example commodities such as milk, others might not even rich stage of maturity.

Marketer's marketing combine strategies modify as their products goes through their life cycles. Marketing, for example, is educational in the introduction stage, influential in the enlargement and maturity stages, and reminder-oriented in the refuse stage. Promotional budgets are inclined to be uppermost in the early stages, and slowly taper off as the product matures and declines. Pricing, allocation, and product features also tend to change.

(Day, 1981)

The concept of product life cycle, applied to Self Service Checkout Systems (SSC) innovations, has also been introduced as an important concept that also contributes to affecting competitiveness.

In terms of Supermarket the Self Service Checkout systems (SSC) systems will be in Introduction stage. Therefore it should be used marketing techniques for this stage.

Value Chain Analysis:

Rapid technological change characterizes today's business environment, with intensifying non-price competition. Firms therefore have been forced to be innovative in all areas of their business activities. Reflecting this trend, during the last decade researchers have been writing increasingly much on the role of innovation in competitive strategy as well as on the relationship between innovation and competitive advantage (Porter, 1990; Lengnick-Hall, 1992 in Weerawardena, 2003). Self Service Checkout (SSC) is an innovation that companies can choose to implement as a part of their competitive strategy in order to enhance their competitive advantage. However managers must secure it sustainability in order for the company to survive in long run, the innovation cannot be competitive advantage in short run and then lead company to its end, the evaluation must be made from the long run perspective.

Evidence supporting the view that innovation leads to sustained competitive advantage comes from several sources. For example, researchers examine innovation and firm performance and suggest that innovation leads to higher performance (Hyvarinen, 1990; Rothwell, 1992; Lengnick-Hall, 1992 in Weerawardena, 2003).

In order to minimize the risks of failure when implementing innovations, it is important to have a strategy that combines product and process innovations with regular incremental improvements. Another challenge for the established firm is to adapt to continuous changes in the sense of organizational adjustments to maintain successful competitiveness. Furthermore, Normann (1993) named four reasons why service-provider companies may offer technology-based service delivery: to reduce costs; to control quality; to standardize service; and to increase the quality level.

The Value-Chain

Porter's value chain framework today still is the ‘accepted language' for representing and analyzing the logic of firm-level value creation, and is also a framework for analyzing firm-level competitive strengths and weaknesses.

The value creating activities in Porter's model are divided in two levels. Primary activities are those directly involved in creating and bringing value to the customer, while support activities enable and improve the performance of the primary activities.

The primary activity level consists of five performances: inbound logistics, operations, outbound logistics, marketing and sales and service. The support activities are procurement, technology growth, human resource management, and firm infrastructure. The main drivers of value are policy decisions made by product and segment choices when the firm is established or repositioned.

(Stabell and Fjeldstad, 1998)

According to Porter, the value-creating logic of his value chain with its generic activity categories is valid for firms in all industries. However, he further states that the specific activities that are vital to a firm's competitive advantage depend on which industry the firm operates in (Porter, 1985, 1990).

Stabell and Fjeldstad (1998) however have investigated the application of the value chain model to more than two-dozen firms from a variety of industries and have experienced problems in applying the value chain framework. They have found that the value chain is suitable for describing and understanding the value creation logic of manufacturing firms, but that it proves problematic when analyzing activities in service industry firms.

They disagree that trouble arise from complexity to allocate and analyze activities in conditions of the five generic main value chain category future by Porter, leading to unclear explanations of value creation.

Therefore, Stabell and Fjeldstad (1998) suggest that the value chain be considered as one of three generic value configurations to facilitate the understanding and analysis of firm-level value-creation logic for a broad range of industries and firms. The additional two value models besides the value-chain are the worth shop and the value system. The value structure model applies to firms where value is shaped by “mobilizing capital and activities to decide a particular customer difficulty.

Stabell and Fjeldstad (1998) also propose alternative presentation formats for both models that represent their unique value creation logic. For the purpose of this research both Porter's value chain and Stabell and Fjeldstad's value network is of importance. Although Stabell and Fjeldstad state that according to their findings the value chain is mostly useful for manufacturing firms, for our investigation of supermarkets' ‘traditional' operations, the value chain is most fitting, with one small alteration. However, in also considering the introduction of a new type of service offering through technology-based self-service checkouts, it is found necessary to complement the value chain model with the value network model in order to be able to capture the value adding activities of Self service checkout system (SSC). The combination of the different value-creating logics, as suggested for this research, has also been proposed by Norman and Ramirez (1993). Since the main purpose of the research is to investigate the effects of SSC in supermarkets, the value network is of central importance, which is discussed in further detail below.

The Value Network

“Value networks use a ‘mediating technology' to link clients and customers who wish to be interdependent.” According to Stabell and Fjeldstad (1998), the firm provides a networking service through the mediating technology and thus facilitates switch affairs among customers distributed in room and time. For the consideration of Self Service Checkout system (SSC), the value network idea is modified to mean that the firm is the network itself, linking its customers not to each other but to the firm itself, facilitating a more interdependent exchange relationship between the firm and its customers.

Value creation in value networks therefore lies in the way the exchange is organized and facilitated. In our case, the ‘mediating technology' is the technology-based self-service system.

Prioritization Matrix

A Prioritization Matrix is a useful method you can utilize with your team members or with your users to attain consensus about an issue. The Matrix helps you position problems or issues (usually generated through brainstorming) by an exacting criterion that is important to your business. Then you can more evidently see which difficulty are the most important to labour on solving first. (www.soton.ac.uk)

Eliciting customer input:

Eliciting customer contribution is to ensuring that the product being developed is focused on customer needs - both concealed and explicit. Careful and thorough concentration to gathering customer wants will lessen the risk of missed requirements and supply the basis for the product specification. Interaction with the customer is a very useful exercise.

(www.soton.ac.uk/~jps7/.../teamworking3%20slides%20penn%20state.ppt assessed on the 12th January, 2010)

Customer Satisfaction and the Performance:

Customer satisfaction is defined as the result of a complex, emotional process. The customer compares his experience following the use of a product or a service, the actual performance, with his expectations, wishes, individual norms or other standards of comparison before using the product. If the expected performance is met, or even surpassed, the customer experiences satisfaction.

(Simon & Homburg 1998, Page 44)

However, satisfaction has also recently been descries as the emotional reaction to this cognitively defined process of comparison (Homburg and Rudolph 1995, page 31). In this context, one however assumes that the result of the process of comparison does not necessarily correspond to the discrepancies between the expectations, of in general; the level of demand (the expected performance component or characteristic) and the perceived level of benefit (the actual performance component or characteristic). Instead, direct effects of these components or characteristics also correspond with satisfaction.

(Bolton et al. 1991 page 376)

The theory is therefore put forward that follow up relations or feedback effects are possible that lead to a posterior correlation of the level of expected performance and the perceived actual performance, and therefore exert an influence upon customer satisfaction. An explanation of this perception process can be found in various theories (Anderson 1973, page 38). The theory of Assimilation argues that the correction in perception occurs in order to minimize the expectation discrepancy, and therefore in order to prevent cognitive dissonance. Ti is worth to mention that, according to the theory of cognitive, individual seek a reduction in emotional tension (dissonance), in order to restore inner equilibrium.

(Fastener, 1957, page 3)

The Contrast Theory represents the opposite of the theory of assimilation. Here, one assumes that a discrepancy between expectation and actually perceived gratification leads to an increase in discrepancy. If, for example, the actual performance is better than the expected performance, the actual performance is shifted further from the expected performance, and the actual service or product is perceived as being better than it actually is. In the case of the actual performance being worse than the expected performance, the actual benefit will similarly be shifted away from the expected benefit. The actual performance is perceived as being worse than it really is.

The assimilation-contrast theory unites the hypotheses of both of these theories. Here, one assumes that, during the process of judgement, the degree of discrepancy between level of demand and perceived accomplishment decides which of the two theories applies. In the case of a slight discrepancy, the performance is assimilated. Yet, if individual acceptance is exceeded in terms of positive or negative traits, the contrast effect pertains.

(Fastener, 1957, page 5)

Implications of customer satisfaction:

In the case of the models presented here, the last variable or the comparison process, satisfaction, is considered by many marketing researchers as a bipolar continuum, whose far poles are satisfaction and dissatisfaction (Herzberg et al, 1959). Other authors assume that customer satisfaction is a multi-factor construct, (Herzberg's “two factors theory”).

He argues the cake that satisfaction and dissatisfaction represent different concepts, whose opposing poles are non-satisfaction, and non-satisfaction. In the context of surveys on work satisfaction, which Herzberg assumes that his theory of work satisfaction can be applied generally to satisfaction, Herzberg differentiated between hygiene factors and motivation factors (Bindmann, 1998, page 33). Hygiene factors avoid dissatisfaction, yet cannot lead to satisfaction. By comparison, motivational factors cause satisfaction, however are unable to hinder dissatisfaction (Herzberg, 1998, page 45).

As we discussed before in the Kano model divides the product, or services into different segments, or divides and measures their individual significance for the whole product. For the different elements of the product or services the following are used:

v Primary requirements,

v Performance criteria,

v Neglect able criteria and

v Enthusiasm criteria.

Measuring these criteria is a prerequisite, since attaining the highest of customer satisfaction in all of a product's or a service's criteria are uneconomical. According to Simon/Homburg (1998), resources should not only be given to all criteria and segments of a product or a service, but allocated to indentified performance element of the product.

Customer expectation has been afforded more importance due to several reasons.

v The first reason can surely be attributed to the increase in competition in the markets, market saturation and, due to this, the higher pressure on profit margins as well as sales making it necessary to look deeper to financial sources and their distribution.

v Secondly, results by researchers and consultants have confirmed that it is uneconomical to provide highest level of satisfaction in all criteria of a product or a service.

v The final reason to increase the importance of expectation, which led to its incorporation in customer satisfaction analysis and surveys, is certainly the factor of internationalization and globalization of markets and companies.

However, a general recommendation for the use of particular model or approaches cannot be made, since this depends on the aim of investigation and the environment in which the analysis is being conducted.

Sometimes it may be more appropriate to combine several models or approaches instead of using a single one, in order to obtain best results for an investigation.

This paper has described several approaches to give an impression of the customer expectation construct. (Simon & Homburg, 1998)

The Traditional System

In the traditional conception of process of value creation, consumers were “outside the firm.” Value creation occurred inside the firm (through its activities) and outside markets. The concept of the “value chain” epitomized the unilateral role of the firm in creating

Value (Porter, 1980).

The firm and the consumer distinct roles of production and consumption in this perspective, the market, viewed either as a locus of exchange or as an aggregation of consumers, was separate from the value creation process (Kotler, 2002) It had no role in value creation. Its role was value exchange and extraction. The market defined as an aggregation of consumers, was a “target” for the firm's offerings. Needless to say, the traditional concept of a market is company-centric. So is the process of value creation. Consequently, firms conceptualize customer relationship management as targeting and managing the “right” customers. Firms focus on the locus of Interaction—the exchange—as the locus of economic value extraction the interactions between companies and customers are not seen as a source of value creation. (Normann & Ramirez, 1994; Wikstrom, 1996)

Health & safety policy and risk assessment by the employer:

Arrange for the effective planning, organization, control, monitoring and appraisal of preventive and defensive measures; ensure they have admission to competent health and protection advice; by law, you should not interfere or mistreatment anything provided for health and safety. You must study to work safely and obey safety system and regulations. You must always be decent in safety wear and equipments at all time. You must account anything damage, doubtful or faulty.

You must not play realistic jokes with health and safety that can reason death or serious injury. Failure to fulfill with these health and safety policies could be unsafe for business and for customers that you guide to misconduct, fine or even imprisonment or prosecution.

“Under the business homicide and Corporate Homicide Act 2007 an offence will be devoted where failings by an organization's senior association are a substantial element in any gross breach of the duty of care owed to the organization's employees or members of the community, which results in death. The greatest sentence is an unlimited fine and the court can additionally build a publicity arrange requiring the organization to publish particulars of its conviction and fine”.

(Source: health and safety executives' website)

Economical Analysis of Retail Sales Boom during Recession:

“Stronger than we dared hope for.” that is the verdict of the British retail consortium today were impressive 4.2% Higher last Month than in December 2008.

The upbeat news is welcome relief for shop keepers large and small how had feared that Christmas would be a bloodbath if cash-strapped customers refuse to splash out.

It also all but confirmed that the recession ended in the final quarter of the last year and that the UK Economy is finally growing again after the longest slump on record- a feeling certainly shared by Davis Caron, Chief Economist at the British Chamber of commerce, who says, “we are on the brink of leaving recession.” But it would be foolish to get carried away. Although the UK is on the road to recovery, the road looks worryingly bumpy. It would have been nothing short of disaster if they were worse than in December 2008 when the recession was entering its most vicious phase and sales fell off a cliff after the collapse of Lehman Brother. In other words, this recent strong performance is not quite as impressive as it first appear. But as Jonathan Loyne's at capital Economics says “There are a number of sizeable potholes in the road ahead. Continued pressure on the house hold to pay down debt, lingering constrains on the availability of credit and the looming fiscal squeeze all suggest that the road back to economic strength will be rather slower and bumpier than that seen after some previous recession.”

The recession may be over, but, a meaningful recovery is a long way off.

(Duncan, H, Evening Standard Newspaper, 12th January, 2010, United Kingdom)

Summary:

Self service checkout system has been getting positive response and acceptance by the potential consumers. Self service checkout system is a relatively new technology that enables customers to shop for the items without the help of employees of the supermarket. It is very important for any supermarket to get acceptance by the customers of the new self service checkout system. For that reason, company use different analytical and qualitative measures to check customer's behavior and satisfaction of new self service checkout system. It has been a transactional process to get acceptance by the customers to effectively use relatively and innovative self service checkout system. For any organization,

Customer's retention is very important factor for the growth and sales point of view. Customer satisfaction has been major factor for any supermarket. To get customer satisfaction, we have mentioned different models such as Kano model analysis, Value chain model and Prioritization matrix model. At the end, we have looked at the health & safety measures and procedures as well as customer satisfaction and retention factors. In the retail environment, health & safety methods and procedures are very important for the safety of the customers as well as employees.

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