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Role of Customer Satisfaction For the Organization Success

The Impact of Customer satisfaction and loyalty plays a crucial role in maintaining the customers and to improve the profit of the organization. There are various factors that plays important role in achieving the given target. Document presented by professional writers of Global Assignment Help gives you the brief information in achieving customer satisfaction.

The Impact of Customer satisfaction and loyalty plays a crucial role in maintaining the customers and to improve the profit of the organization. There are various factors that plays important role in achieving the given target. Document presented by professional writers of Global Assignment Help gives you the brief information in achieving customer satisfaction.

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Research Project<br />

Impact <strong>of</strong> customer satisfaction and loyalty on <strong>the</strong><br />

performance <strong>of</strong> firm: A case study on Asda<br />

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TABLE OF CONTENTS<br />

INTRODUCTION ....................................................................................................................... 4<br />

Background <strong>of</strong> <strong>the</strong> study ......................................................................................................... 4<br />

Rationale <strong>of</strong> <strong>the</strong> study ............................................................................................................. 4<br />

Research Purpose .................................................................................................................. 5<br />

Aim and objectives ................................................................................................................. 6<br />

Significance <strong>of</strong> <strong>the</strong> study ......................................................................................................... 6<br />

LITERATURE REVIEW .............................................................................................................. 7<br />

<strong>Customer</strong> satisfaction and loyalty ........................................................................................... 7<br />

<strong>Customer</strong> satisfaction and loyalty model ................................................................................. 8<br />

Tools or techniques to measure customer satisfaction and customer loyalty .......................... 9<br />

Challenges faced by Asda regarding maintaining customer satisfaction and loyalty .........................10<br />

RESEARCH METHODOLOGY .................................................................................................11<br />

Research strategy .....................................................................................................................11<br />

Sampling frame .......................................................................................................................12<br />

Data collection ........................................................................................................................12<br />

Data analysis plan ....................................................................................................................12<br />

Ethical issues: .......................................................................................................................12<br />

Data analysis plan: ...................................................................................................................13<br />

CONCLUSION AND RECOMMENDATIONS ............................................................................17<br />

REFERENCES .........................................................................................................................19<br />

Appendix 1: Questionnaire ........................................................................................................21<br />

Appendix 2: Update time plan ...................................................................................................23<br />

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LIST OF FIGURES<br />

Figure 1: Virtuous Circle ............................................................................................................. 8<br />

Figure 3: Theme 1 .....................................................................................................................14<br />

Figure 4: Theme 2 .....................................................................................................................14<br />

Figure 5: Theme 4 .....................................................................................................................15<br />

Figure 6: Theme 5 .....................................................................................................................16<br />

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INTRODUCTION<br />

In <strong>the</strong> modern era, customer satisfaction and loyalty have become important in many<br />

ways for most <strong>of</strong> <strong>the</strong> organizations in context <strong>of</strong> retaining customers and for increasing pr<strong>of</strong>it<br />

margin as well. <strong>For</strong> that, enterprises are trying to move towards increasing automation and<br />

outsourcing activities in order to provide quality <strong>of</strong> service to <strong>the</strong>ir customers at compatible price<br />

against o<strong>the</strong>r marketers that are present in <strong>the</strong> marketplace. According to University <strong>of</strong> Michigan<br />

business pr<strong>of</strong>essor Claes, <strong>the</strong>re is a direct relationship between customer satisfaction and<br />

financial success. In addition, economic success <strong>of</strong> enterprise also reflects customer<br />

satisfaction and <strong>the</strong>ir perceptions about goods and services that <strong>the</strong>y purchase from retail<br />

companies (Asda, 2015). As per <strong>the</strong> given case concerned, Asda, retail firm <strong>of</strong> UK has been<br />

taken and rationale behind selecting this enterprise was to investigate <strong>the</strong> impact <strong>of</strong> customer<br />

satisfaction and loyalty on <strong>the</strong> performance <strong>of</strong> company. It is a British-based supermarket chain<br />

and it provides various products such as clothing, general merchandise, retails food, financial<br />

services and toys etc.<br />

Background <strong>of</strong> <strong>the</strong> study<br />

<strong>For</strong> generating a competitive advantage and to better perform against o<strong>the</strong>rs, most <strong>of</strong><br />

<strong>the</strong> enterprises emphasize on <strong>the</strong> use <strong>of</strong> quality management as a strategic foundation. The<br />

goal <strong>of</strong> this research is to examine <strong>the</strong> impact <strong>of</strong> customer satisfaction and customer loyalty on<br />

performance along with pr<strong>of</strong>it margin <strong>of</strong> an enterprise as well as people that are associated with<br />

<strong>the</strong> firm. The study begins with critical review <strong>of</strong> literature on customer satisfaction and loyalty.<br />

After that, study concentrates on major factors that can demotivate <strong>the</strong> customers and may<br />

reduce <strong>the</strong>ir satisfaction level towards products and services that are <strong>of</strong>fered by <strong>the</strong>m to firm<br />

(Hesselink and Boselie, 2001). Primary data was collected from regular customers <strong>of</strong> company<br />

to know <strong>the</strong>ir perceptions and to measure <strong>the</strong>ir satisfaction level towards services <strong>of</strong> enterprise<br />

as well. At <strong>the</strong> end <strong>of</strong> report, investigator explores <strong>the</strong> ways through which Asda can overcome<br />

customer dissatisfaction and would increase <strong>the</strong>ir retention with organization. Statistical test has<br />

been applied in order to examine <strong>the</strong> impact <strong>of</strong> customer satisfaction and loyalty on firm’s<br />

performance and its pr<strong>of</strong>it margin as well.<br />

Rationale <strong>of</strong> <strong>the</strong> study<br />

Rationale behind carrying out <strong>the</strong> present study was to better disclose <strong>the</strong> information<br />

about impact <strong>of</strong> customer satisfaction and loyalty on <strong>the</strong> performance and pr<strong>of</strong>it margin <strong>of</strong> UK<br />

based retail enterprises in an appropriate manner. In addition, report develops appropriate<br />

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ecommendations through which firm can increase customer satisfaction and employee<br />

motivation within workplace. Moreover, <strong>the</strong> analysis give answers to questions that are related<br />

to <strong>the</strong> customer satisfaction and loyalty dimensions as well as provide some indications to<br />

change <strong>the</strong> behavior <strong>of</strong> customers in relation to his/her perception.<br />

Research Purpose<br />

The main purpose <strong>of</strong> taking Asda was that it was facing various issues within workplace<br />

due to poor customer satisfaction and delay in delivery <strong>of</strong> services as well as products within<br />

stipulated time. This research has been conducted in order to identify various issues such as,<br />

quality, delivery <strong>of</strong> products and services at specified time and behavior <strong>of</strong> staff-members at <strong>the</strong><br />

workplace etc. By taking this organization and topic, researcher would be able to better describe<br />

<strong>the</strong> impact <strong>of</strong> customer satisfaction and loyalty along with <strong>the</strong>ir impact on performance and pr<strong>of</strong>it<br />

margin <strong>of</strong> enterprise. Asda has talented staff members but due to lack <strong>of</strong> customer solving<br />

queries and technology knowledge, <strong>the</strong>y failed to meet <strong>the</strong> needs <strong>of</strong> customers in <strong>the</strong> domestic<br />

and international market in a systematic manner. This issue is important for <strong>the</strong> organization in<br />

terms <strong>of</strong> both customers and business perspective (Hart, 2007). By reducing <strong>the</strong> issues that are<br />

faced by customers, company would be able to increase customer satisfaction and retention as<br />

well as increased pr<strong>of</strong>it margin.. Most <strong>of</strong> <strong>the</strong> information was collected from secondary sources<br />

such as books, journals, online published articles etc.<br />

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Aim and objectives<br />

Aim: To investigate <strong>the</strong> impact <strong>of</strong> customer satisfaction and customer loyalty on pr<strong>of</strong>it margin<br />

and performance <strong>of</strong> Asda in UK.<br />

Objectives:<br />

To critically review <strong>the</strong> literature on customer satisfaction and loyalty.<br />

To investigate <strong>the</strong> factors that can demotivate customers and may reduce <strong>the</strong>ir<br />

satisfaction level.<br />

To understand <strong>the</strong> perception <strong>of</strong> customers towards services and products provided by<br />

company to <strong>the</strong>m.<br />

To identify <strong>the</strong> ways through which Asda can overcome customer dissatisfaction and<br />

may increase <strong>the</strong>ir retention with firm.<br />

To develop appropriate recommendations through which firm can increase customer<br />

satisfaction and employee motivation.<br />

Research questions:<br />

What are <strong>the</strong> concepts <strong>of</strong> customer satisfaction and loyalty?<br />

What are <strong>the</strong> major factors that can demotivate <strong>the</strong> customers and may reduce <strong>the</strong>ir<br />

satisfaction level towards products and services that are <strong>of</strong>fered by Asda?<br />

What are <strong>the</strong> perceptions <strong>of</strong> customers towards services and products provided by<br />

company to <strong>the</strong>m?<br />

What are <strong>the</strong> ways through which Asda can overcome customer dissatisfaction and may<br />

increase <strong>the</strong>ir retention with firm?<br />

How Asda can increase <strong>the</strong> customer satisfaction and employee motivation within<br />

workplace?<br />

Significance <strong>of</strong> <strong>the</strong> study<br />

The present study would be beneficial for <strong>the</strong> enterprise in order to identify problems which were<br />

facing by customers during online and <strong>of</strong>fline shopping. By doing this, UK based retail company<br />

would be able to overcome <strong>the</strong> issues faced by customers and will increase <strong>the</strong>ir satisfaction<br />

and loyalty so that <strong>the</strong>y will encourage people to retain in <strong>the</strong> firm for long time period<br />

(Gustafsson, Johnson and Nilsson, 2001). On <strong>the</strong> o<strong>the</strong>r hand, from researcher’s and scholar’s<br />

perspective, study will be helpful in order to increase <strong>the</strong>ir knowledge level regarding customer<br />

satisfaction and <strong>the</strong>ir impact on future decisions that will be taken by <strong>the</strong> retail firm to enhance<br />

pr<strong>of</strong>it margin.<br />

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LITERATURE REVIEW<br />

In recent globalized and competitive business environment, it is essential for retail<br />

enterprises to pay more attention to satisfy <strong>the</strong> customer needs in an appropriate manner. This<br />

section <strong>of</strong> report provides information about <strong>the</strong>ories and studies that were done by o<strong>the</strong>r<br />

researchers and which are related to determine <strong>the</strong> concept <strong>of</strong> customer satisfaction and loyalty<br />

along with <strong>the</strong>ir impact on performance <strong>of</strong> <strong>the</strong> company as well. In addition, this section can be<br />

fur<strong>the</strong>r classified into different sub-topics to achieve aim and objectives <strong>of</strong> <strong>the</strong> study in an<br />

appropriate manner.<br />

Schifferes explored that in economic activity, an estimated 46 million retail transactions<br />

executed daily and it is <strong>the</strong> equivalent <strong>of</strong> 20 percent <strong>of</strong> UK GDP.<br />

<strong>Customer</strong> satisfaction and loyalty<br />

According to Blut, Frennea, Mittal and Mo<strong>the</strong>rsbaugh (2015) customer satisfaction can<br />

be used as a measurement tool which helps firms to measure <strong>the</strong> customer’s attitudes<br />

regarding products and services <strong>of</strong>fered by <strong>the</strong> enterprise to <strong>the</strong>m. By understanding client’s<br />

perceptions towards brands, enterprises can develop strategies and will plan to increase market<br />

share and pr<strong>of</strong>it margin as well. As per Rogers, Strutton and Doddridge (2015), customer<br />

satisfaction is considered as an abstract concept which considers detail about quality and value<br />

<strong>of</strong> product as well as o<strong>the</strong>r facilities like convenience, location, hours <strong>of</strong> operations, parking etc.<br />

Especially in retail sector, various o<strong>the</strong>r factors including atmosphere <strong>of</strong> store, enjoyable<br />

shopping environment, attentiveness and cleanliness can create a wide impact on <strong>the</strong> mind <strong>of</strong><br />

customers during shopping.<br />

Most <strong>of</strong> <strong>the</strong> companies in UK are emphasizing on conducting market research survey<br />

regarding measuring expectations <strong>of</strong> a customer with concerning a product or service<br />

effectively. Different authors suggest that in cut throat competitive market, it is essential for <strong>the</strong><br />

companies to provide services to <strong>the</strong>ir clients within stipulated time. However, without knowing<br />

views <strong>of</strong> customers, companies would be unable to meet <strong>the</strong>ir expectations at an appropriate<br />

time. By measuring satisfaction level <strong>of</strong> customers, retail enterprise like Asda and Tesco would<br />

be able to retain <strong>the</strong>ir existing customers with <strong>the</strong> firms for long duration.<br />

<strong>Customer</strong> loyalty<br />

According to Terho, Eggert, Haas, and Ulaga (2015), customer loyalty can be defined as<br />

an attitudinal and behavioral tendency in order to favor one product over all o<strong>the</strong>rs that are<br />

present in <strong>the</strong> marketplace. It motivate customers to spend a greater share <strong>of</strong> wallet and feel<br />

comfort with <strong>the</strong> brand so that <strong>the</strong>y will encourage shopping more consistently and feeling<br />

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positive about a shopping experience. Robinson and Marshall ( 2015) was determined <strong>the</strong> main<br />

difference between customer satisfaction and loyalty is that in customer satisfaction, enterprise<br />

emphasizes on measuring customer’s current attitudes. While on <strong>the</strong> o<strong>the</strong>r side, in customer<br />

loyalty, firm concentrates on predicting customer behavior and attitudes.<br />

<strong>Customer</strong> satisfaction and loyalty model<br />

In order to increase <strong>the</strong> loyalty <strong>of</strong> customers and o<strong>the</strong>r stakeholders in strategic<br />

management, loyalty business model is used. On <strong>the</strong> basis <strong>of</strong> recent experience <strong>of</strong> customers<br />

towards products or services, model will be prepared. Strength <strong>of</strong> <strong>the</strong> business can be identified<br />

in terms <strong>of</strong> level <strong>of</strong> satisfaction and retention <strong>of</strong> clients with <strong>the</strong> company. Buchanan and Gilles<br />

determined that <strong>the</strong>re is a direct relationship between customer satisfaction and loyalty.<br />

However, relationship <strong>of</strong> <strong>the</strong>se two terms and customers will break when customer moves away<br />

from <strong>the</strong> company's service area and relationship strength has weakened as well (Yamin and<br />

Mavondo, 2015). In addition, unexplainable change <strong>of</strong> price and unable to meet demands <strong>of</strong><br />

customers within specific time period are <strong>the</strong> o<strong>the</strong>r constraints that motivate clients to switch on<br />

o<strong>the</strong>r brands. Schlesinger and Hesket were developed “Expanded models” in order to define <strong>the</strong><br />

concepts <strong>of</strong> "cycle <strong>of</strong> success" and "cycle <strong>of</strong> failure". Cycle <strong>of</strong> success can be understood in<br />

terms <strong>of</strong> employees’ ability to provide superior service to customers.<br />

Figure 1: Virtuous Circle<br />

(Source : Pillai and Goldsmith, 2015)<br />

Through creating a corporate culture as well as selecting and providing training to<br />

employees, retail companies like Asda can lead to increased employee satisfaction through<br />

superior service delivery. It will be beneficial for <strong>the</strong> firm in terms <strong>of</strong> creating customer loyalty,<br />

improved sales levels and higher pr<strong>of</strong>it margins. While on <strong>the</strong> o<strong>the</strong>r side, when all <strong>the</strong>se<br />

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criteria’s will not fulfill <strong>the</strong>n cycle <strong>of</strong> failure will occur. It would create a negative impact on <strong>the</strong><br />

minds <strong>of</strong> customers and organization as well.<br />

Tools or techniques to measure customer satisfaction and customer loyalty<br />

Zeithaml, Parasuraman and Berry were developed a quality management framework to<br />

measure <strong>the</strong> quality <strong>of</strong> products and services that are <strong>of</strong>fered by company. In order to manage<br />

business process and managing quality in services, SERVQUAL model has been used. This<br />

framework emphasizes on various aspects including service quality, reliability, competence,<br />

access, security, understanding <strong>the</strong> customer and measuring <strong>the</strong> gap between customer’s<br />

expectation and experience. Apart from this, responsiveness, assurance, tangibles, empathy<br />

and reliability are <strong>the</strong> major key service dimensions <strong>of</strong> this model that can affect customers <strong>of</strong><br />

retail enterprise like Asda (Kaur, 2015)..<br />

Figure 2: SERVQUAL Model<br />

(Source : Verma and Sheth, 2015.)<br />

From <strong>the</strong> figure, it is clear that Gap 1 describes expectations <strong>of</strong> customers and Gap 2<br />

determined <strong>the</strong> wrong service quality standards. While on <strong>the</strong> o<strong>the</strong>r side, Gap 3 and Gap 4<br />

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emphasizes on <strong>the</strong> service performance group and promises to give for <strong>the</strong> products that are<br />

not delivered with actual delivery. Gap 5 clearly indicates <strong>the</strong> major difference between<br />

perception and expectation <strong>of</strong> customers. This model has several benefits such as easily track<br />

customer satisfaction; assess <strong>the</strong> expectations and perceptions <strong>of</strong> internal customers and<br />

analyzing quality <strong>of</strong> service from <strong>the</strong> customer’s perspective etc. However, some drawbacks are<br />

also associated with SERVQUAL Model such as focus on service delivery but not concentrate<br />

on service encounter and 5 gaps which were considered in model are not universals etc.<br />

(Perdikaki, Peng and Heim, 2015) Hence, it can be said that SERVQUAL and SERVPERF<br />

models would be beneficial for <strong>the</strong> firm in order to evaluate <strong>the</strong>ir strengths and weaknesses so<br />

that appropriate decisions can be taken within stipulated time.<br />

Challenges faced by Asda regarding maintaining customer satisfaction and loyalty<br />

Locations, scale <strong>of</strong> reach and more focus on traditional technology as compared to o<strong>the</strong>r<br />

competitors that are present in <strong>the</strong> marketplace are creating challenges for retail firm to retain its<br />

existing customers by meeting <strong>the</strong>ir expectations within stipulated time. From financial<br />

perspectives, declining market shares and sales <strong>of</strong> company are <strong>the</strong> major factors that are<br />

creating problems for <strong>the</strong> firm. In addition, packaging and reducing prices <strong>of</strong> products are <strong>the</strong><br />

elements which are creating issue for <strong>the</strong> organization. Apart from this, technology up-gradation<br />

and effective use <strong>of</strong> marketing and distribution channels are <strong>the</strong> major strengths <strong>of</strong> Tesco and<br />

Sainsbury which create challenges for Asda in terms <strong>of</strong> retaining and attracting new customers<br />

towards brand (Robinson and Marshall, 2015).<br />

Hence, based on <strong>the</strong> critical review <strong>of</strong> literature, it can be articulated that several factors<br />

such as product quality, service quality, price, shopping environment, overall customer service,<br />

price <strong>of</strong> product/service, behavior <strong>of</strong> sales staff, product availability and so on can affect <strong>the</strong><br />

customer satisfaction and <strong>the</strong>ir loyalty. Apart from this, techniques used by Asda such as<br />

SERVQUAL and Expanded models would be beneficial for <strong>the</strong> company in future time period<br />

(Rodriguez, Peterson and Ajjan, 2015).<br />

This is a sample on<br />

<strong>Customer</strong> <strong>Satisfaction</strong><br />

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RESEARCH METHODOLOGY<br />

RM section <strong>of</strong> <strong>the</strong> study has been done by collecting relevant and appropriate data in<br />

accordance with research aims and objectives <strong>of</strong> <strong>the</strong> study. This section provides information<br />

regarding research approach, research philosophy, data analysis tools and techniques along<br />

with data presentation techniques etc.<br />

Research strategy<br />

It can be defined as <strong>the</strong> tactics that would be required in order to conduct and complete<br />

<strong>the</strong> entire course <strong>of</strong> study. Different types <strong>of</strong> strategies are present including case study,<br />

experiment and survey (Gill and Johnson, 2002). As per <strong>the</strong> given case scenario, primary data<br />

was collected from customers by using <strong>the</strong> survey method. Questionnaires have been framed<br />

and distributed among customers <strong>of</strong> Asda to know <strong>the</strong>ir perceptions about services and<br />

products which are being <strong>of</strong>fered by company to <strong>the</strong>m.<br />

Research philosophy: In respect with <strong>the</strong> research subject along with producing<br />

knowledge and understanding related to <strong>the</strong> topic, research philosophy has been used.<br />

Positivism philosophy was most suitable in accordance to <strong>the</strong> given topic because hypo<strong>the</strong>sis<br />

has been framed and <strong>the</strong> research is based on <strong>the</strong> practical outcomes. In addition, investigator<br />

handles <strong>the</strong> research activities with actual facts that are based on <strong>the</strong> customer’s perception.<br />

Research approach: It is developed in <strong>the</strong> context <strong>of</strong> research subject and establishes<br />

<strong>the</strong>ory and/or models. In order to explore and analyze close relations between two variables,<br />

inductive and deductive research approaches could be used. In inductive approach, researcher<br />

provides detail information about general issues under <strong>the</strong> research subject (Beiske, 2003).<br />

While on <strong>the</strong> o<strong>the</strong>r side, for present case concerned, deductive approach was used in order to<br />

establish <strong>the</strong> relationship between customer satisfaction and loyalty as well as firm’s<br />

performance at Asda. Current study is based on both quantitative and qualitative approach.<br />

Qualitative approach was used to develop a specific <strong>the</strong>ory and model which is defined by o<strong>the</strong>r<br />

researchers related to this same topic. While on <strong>the</strong> o<strong>the</strong>r side, quantitative method has been<br />

used because primary raw data which was collected from customers was <strong>of</strong> quantitative nature.<br />

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Sampling frame<br />

A sample size <strong>of</strong> 25 has been taken in order to present <strong>the</strong> perceptions <strong>of</strong> customers<br />

related to customer satisfaction and loyalty. Random sampling technique has been used<br />

because customers were selected randomly from <strong>the</strong> population. Due to time and cost<br />

constraints, small sample size has been taken (Mackey and Gass, 2013).<br />

Data collection<br />

In <strong>the</strong> context <strong>of</strong> generating valuable information for <strong>the</strong> study, appropriate source <strong>of</strong><br />

data collection has been considered. Both primary and secondary data collection sources have<br />

been used in <strong>the</strong> given case scenario. Primary data was collected from customers on <strong>the</strong> basis<br />

<strong>of</strong> <strong>the</strong>ir interest and availability in retail store at <strong>the</strong> time <strong>of</strong> data collection (Bhattacharyya,<br />

2009). This technique was used because it is <strong>the</strong> most appropriate method in terms <strong>of</strong><br />

understanding views <strong>of</strong> customers towards products and services that are being by <strong>the</strong> firm to<br />

<strong>the</strong>m at stipulated time. While on <strong>the</strong> o<strong>the</strong>r side, various books, journals and online published<br />

articles have been considered to conduct <strong>the</strong> literature review on customer satisfaction and<br />

loyalty.<br />

Data analysis plan<br />

Investigator can evaluate and analyze <strong>the</strong> data in effective and efficient manner by using<br />

several tools and techniques like qualitative and quantitative data analysis methods (Creswell,<br />

2013). As per <strong>the</strong> given case, for analyzing <strong>the</strong> qualitative data, <strong>the</strong>matic analysis approach was<br />

applied and different <strong>the</strong>mes have been prepared related to <strong>the</strong> subject. On <strong>the</strong> o<strong>the</strong>r hand,<br />

statistical test has been applied in order to prove hypo<strong>the</strong>sis and to interpret <strong>the</strong> results in an<br />

appropriate manner. By framing hypo<strong>the</strong>sis, dedicated results can be generated within stipulate<br />

time period.<br />

Ethical issues<br />

At <strong>the</strong> time <strong>of</strong> conducting research, investigator was faced several issues such as time<br />

and selection <strong>of</strong> sample size. However, by maintaining reliability and validity <strong>of</strong> data in <strong>the</strong> entire<br />

research, researcher try to overcome issues that researcher faced during <strong>the</strong> entire course <strong>of</strong><br />

study. In addition, prior permission <strong>of</strong> au<strong>the</strong>ntic people, convincing customers to fill<br />

questionnaires and managing validity and confidentiality <strong>of</strong> data are some accessibility issues<br />

that affect <strong>the</strong> overall study.<br />

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Data analysis plan<br />

Investigator can evaluate and analyze <strong>the</strong> data in effective and efficient manner through<br />

using several tools and techniques like qualitative and quantitative data analysis etc. As per <strong>the</strong><br />

given case, for analysis qualitative data, <strong>the</strong>matic analysis approach was applied and different<br />

<strong>the</strong>mes have been prepared related to <strong>the</strong> subject. On <strong>the</strong> o<strong>the</strong>r hand, statistical test has been<br />

applied in order to prove hypo<strong>the</strong>sis and to interpret <strong>the</strong> results in an appropriate manner. By<br />

framing hypo<strong>the</strong>sis, dedicated results can be generated within stipulate time.<br />

Demographic details <strong>of</strong> customers<br />

Age<br />

Gender<br />

<strong>Customer</strong>s association<br />

with Asda<br />

Between 18- 30 years 5<br />

31-50 years 13<br />

More than 50 years 7<br />

Male 18<br />

Female<br />

Less than 1 year<br />

9<br />

2-3 years 8<br />

4-5 years 6<br />

More than 5 years 2<br />

7<br />

Findings: Demographic pr<strong>of</strong>ile <strong>of</strong> customers indicates that most <strong>of</strong> <strong>the</strong> male customers<br />

(18) belong to age group 31-50 years were participated in <strong>the</strong> study. In addition, mostly<br />

customers associated with <strong>the</strong> company since less than 1 year and used products and services<br />

<strong>of</strong> company.<br />

Analysis <strong>of</strong> qualitative data<br />

<strong>For</strong> analysis <strong>of</strong> qualitative data, <strong>the</strong>matic analysis was used and different <strong>the</strong>mes have<br />

been prepared. This technique was used because it is a suitable tool in order to present <strong>the</strong><br />

information which is collected from respondents.<br />

Theme 1: Investigate <strong>the</strong> factors that can demotivate customers and reduce <strong>the</strong>ir satisfaction<br />

level within retail store.<br />

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Behavior <strong>of</strong> staff-members within store<br />

4<br />

Failed to quick delivery <strong>of</strong> products and services<br />

5<br />

Waiting long time in a queue for accessing products<br />

and services<br />

10<br />

Poor technology up-gradation<br />

6<br />

0 2 4 6 8 10 12<br />

Figure 3: Theme 1<br />

Findings: Most <strong>of</strong> <strong>the</strong> customers were satisfied with <strong>the</strong> fact that waiting long time in a queue<br />

and poor technology up-gradation as compared to o<strong>the</strong>r competitors like Tesco and Sainsbury<br />

were major factors which can demotivate <strong>the</strong>m for continuously consuming <strong>the</strong> products and<br />

services <strong>of</strong> Asda.<br />

Theme 2: <strong>Satisfaction</strong> <strong>of</strong> customers with <strong>the</strong> services <strong>of</strong>fered by Asda retail store.<br />

14<br />

12<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

13<br />

7<br />

3<br />

2<br />

0<br />

Highly dissatisfied Dissatisfied Neutral Satisfied Highly satisfied<br />

Figure 4: Theme 2<br />

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Findings: On <strong>the</strong> basis <strong>of</strong> above chart, it can be said that 13 customers were satisfied with <strong>the</strong><br />

services <strong>of</strong>fer by Asda to <strong>the</strong>m. But <strong>the</strong>y replied that still needs <strong>of</strong> improvement is required in<br />

order to develop customer service strategy and to overcome issues that are faced by <strong>the</strong>m<br />

within retail store. In addition, very less customers were highly dissatisfied with services <strong>of</strong><br />

company.<br />

Theme 3: Perception <strong>of</strong> customers with regard to customer service strategy used by Asda to<br />

retain existing and attracting new one.<br />

Findings: When researcher asked this question from customers <strong>the</strong>n <strong>the</strong>y stated that <strong>the</strong>y have<br />

positive perception about customer service strategy which is used by Asda for <strong>the</strong>m. New<br />

initiatives regarding technology up-gradation and employee training would be beneficial for <strong>the</strong><br />

company in near future.<br />

Theme 4: Behavior <strong>of</strong> retail store employees is satisfactory in terms <strong>of</strong> solving queries and<br />

delivery <strong>of</strong> products within stipulated time.<br />

10<br />

15<br />

Yes<br />

No<br />

Figure 5: Theme 4<br />

Findings: From <strong>the</strong> above Pie-chart, it is clear that most <strong>of</strong> <strong>the</strong> customers were satisfied with<br />

<strong>the</strong> behavior <strong>of</strong> staff members within Asda retail store. But <strong>the</strong>y recommended that organization<br />

should provide training to <strong>the</strong>m in order to increase <strong>the</strong>ir efficiency and quick delivery <strong>of</strong><br />

products to clients within stipulated time.<br />

Theme 5: The ways through Asda can overcome customer dissatisfaction and enhance<br />

performance <strong>of</strong> UK based Retail Company.<br />

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14<br />

12<br />

10<br />

8<br />

6<br />

12<br />

4<br />

2<br />

5<br />

3<br />

5<br />

0<br />

More emphasize on<br />

technology adoption and<br />

up-gradation<br />

Appointing more staffmembers<br />

to solving<br />

queries <strong>of</strong> customers<br />

within specific time<br />

Company should focus<br />

on use <strong>of</strong> e-commerce<br />

and e-business<br />

technologies<br />

Providing training to<br />

employee and<br />

maintaining<br />

transparency within <strong>the</strong><br />

entire process<br />

Figure 6: Theme 5<br />

Findings: The above chart explored that most <strong>of</strong> <strong>the</strong> customers (12) suggested that through<br />

appointing more staff members and by providing training to solve queries <strong>of</strong> clients within<br />

specific time, Asda can reduce customer dissatisfaction and may enhance performance <strong>of</strong> UK<br />

based Retail Company in an appropriate manner.<br />

Quantitative analysis: In order to prove <strong>the</strong> hypo<strong>the</strong>sis, Chi-Square test has been applied<br />

because by applying this test, relationship between two variables including customer<br />

satisfaction and loyalty and performance <strong>of</strong> company can be identified.<br />

Chi Square Test:<br />

H 0 = Null hypo<strong>the</strong>sis<br />

H a = Alternate hypo<strong>the</strong>sis<br />

H 0=<br />

<strong>Customer</strong> satisfaction and loyalty cannot influence performance <strong>of</strong> Asda.<br />

H a= <strong>Customer</strong> satisfaction and loyalty can influence performance <strong>of</strong> Asda.<br />

Table 1: Chi-Square table 1<br />

S. No. Responses No. <strong>of</strong> responses % <strong>of</strong> Responses<br />

1<br />

Strongly<br />

Disagree<br />

2 10.0%<br />

2 Disagree 5 25.0%<br />

3 Neutral 1 5.0%<br />

4 Agree 10 50.0%<br />

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5 Strongly agree 7 35.0%<br />

Total responses 25 100.00%<br />

Table 2: Chi Square table 2<br />

Observed (O) Expected (E) O-E (O-E)2 (O-E)2/E<br />

2 2 0.00 0.00 0.00<br />

5 2 3.00 9.00 4.50<br />

1 2 -1.00 1.00 0.50<br />

10 2 8.00 64.00 32.00<br />

7 2 5.00 25.00 12.50<br />

Calculated value <strong>of</strong> Chi Square 49.50<br />

Findings: On <strong>the</strong> basis <strong>of</strong> Chi-Square test, it can be interpreted that tabulated value <strong>of</strong> Chi<br />

Square is 9.488 which is less than calculated value 49.50. Hence, it can be said that null<br />

hypo<strong>the</strong>sis is rejected and alternative hypo<strong>the</strong>sis is accepted. It can be stated that through<br />

increasing customer satisfaction and loyalty as well as performance <strong>of</strong> <strong>the</strong> company (customer<br />

base, sales and pr<strong>of</strong>it margin) can be increased effectively.<br />

CONCLUSION AND RECOMMENDATIONS<br />

On <strong>the</strong> basis <strong>of</strong> report, it can be articulated that customer satisfaction and loyalty can<br />

play a crucial role in order to retain <strong>the</strong> customers and to enhance pr<strong>of</strong>it margin <strong>of</strong> <strong>the</strong> company.<br />

The result <strong>of</strong> LR section interprets that Poor technology up-gradation, waiting long time in a<br />

queue for accessing products and services as well as failed to quick delivery <strong>of</strong> products and<br />

services were <strong>the</strong> major factors that demotivate customers and reduce <strong>the</strong>ir satisfaction level<br />

towards products and services <strong>of</strong>fered by Asda. Result <strong>of</strong> Chi-Square test shows that customer<br />

satisfaction and loyalty can influence <strong>the</strong> performance <strong>of</strong> Asda. Apart from this, most <strong>of</strong> <strong>the</strong><br />

customers were satisfied with <strong>the</strong> fact that behavior <strong>of</strong> retail store employees is satisfactory in<br />

terms <strong>of</strong> solving queries and delivery <strong>of</strong> products within stipulated time.<br />

When researcher asked questions from customers regarding ways through which<br />

performance <strong>of</strong> company can boost-up, <strong>the</strong>y replied that Asda can enhance its performance<br />

through emphasizing on technology adoption and up-gradation as well as appointing more staffmembers<br />

to solve <strong>the</strong> queries <strong>of</strong> customers within specific time. In addition, company should<br />

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provide training to <strong>the</strong>ir employees so that <strong>the</strong>y will behave well with clients and would<br />

encourage <strong>the</strong>m to retain for long time period. It will directly affect <strong>the</strong> pr<strong>of</strong>it and sales margin <strong>of</strong><br />

enterprise as well.<br />

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REFERENCES<br />

Books and Journals<br />

Beiske, B., 2003. Research methods: Uses and Limitations <strong>of</strong> questionnaires, interviews and<br />

case studies. GRIN Verlag<br />

Bhattacharyya, D. K., 2009. Research methodology. Excel Books.<br />

Blut, M., Frennea, C., Mittal, V. and Mo<strong>the</strong>rsbaugh, D. L., 2015. How Procedural, Financial and<br />

Relational Switching Costs Affect <strong>Customer</strong> <strong>Satisfaction</strong>, Repurchase Intentions, and<br />

Repurchase Behavior: A Meta-Analysis. International Journal <strong>of</strong> Research in Marketing,<br />

<strong>For</strong>thcoming.<br />

Clow, K. E. and Seshadri, S., 2015. Bias in Consumer Expectations <strong>of</strong> Services: Implications for<br />

<strong>Customer</strong> <strong>Satisfaction</strong> Measures. Springer International Publishing. pp. 391-396.<br />

Creswell, J. W., 2013. Qualitative, Quantitative, and Mixed Methods Approaches. 4 th ed. SAGE<br />

Publications, Inc.<br />

Gill, J., and Johnson, P., 2002. Research Methods for Managers. 3rd ed. London: SAGE<br />

Publications Ltd.<br />

Gunasekaran, A., Irani, Z. and Papadopoulos, T., 2015. Performance measures and metrics in<br />

outsourcing decisions: A review for research and applications. International Journal <strong>of</strong><br />

Production Economics. 161. pp.153-166.<br />

Kaur, B., 2015. Impact <strong>of</strong> E-Commerce on E-Retail. Journal for Studies in Management and<br />

Planning. 1(1) pp. 81-87.<br />

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Routledge.<br />

Perdikaki, O., Peng, D. X., and Heim, G. R., 2015. Impact <strong>of</strong> <strong>Customer</strong> Traffic and Service<br />

Process Outsourcing Levels on e‐Retailer Operational Performance. Production and<br />

Operations Management.<br />

Pillai, K. G., and Goldsmith, R. E., 2015. Technology Turbulence And <strong>Customer</strong> Orientation: A<br />

New Perspective. Springer International Publishing. pp. 95-101.<br />

Pleshko, L. P., and Heiens, R. A., 2015. <strong>Customer</strong> satisfaction and loyalty in <strong>the</strong> Kuwaiti retail<br />

services market: why are satisfied buyers not always loyal buyers?. The International<br />

Review <strong>of</strong> Retail, Distribution and Consumer Research. 25(1). pp. 55-71.<br />

Robinson, L. and M. B., Marshall, T., 2015. Employee <strong>Satisfaction</strong> and Internal Service<br />

Performance: Some Preliminary Evidence. Springer International Publishing. pp. 347-<br />

353<br />

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discount <strong>of</strong> up to 25% OFF on all assignment orders from Global Assignment Help.


Rodriguez, M., Peterson, R. M.and Ajjan, H., 2015. CRM/Social Media Technology: Impact on<br />

<strong>Customer</strong> Orientation Process and <strong>Organization</strong>al Sales Performance. In Ideas in<br />

Marketing: Finding <strong>the</strong> New and Polishing <strong>the</strong> Old . Springer International Publishing. pp.<br />

636-638.<br />

Rogers, H. P., Strutton, D., and Doddridge, B. F. ,2015. Measuring <strong>Customer</strong> <strong>Satisfaction</strong> with<br />

Logistics Services: An Investigation <strong>of</strong> <strong>the</strong> Motor Carrier Industry.<br />

Terho, H., Eggert, A., Haas, A., and Ulaga, W., 2015. How sales strategy translates into<br />

performance: The role <strong>of</strong> salesperson customer orientation and value-based<br />

selling. Industrial Marketing Management. 45. pp. 12-21.<br />

Verma, V., Sharma, D., and Sheth, J., 2015. Does relationship marketing matter in online<br />

retailing? A meta-analytic approach. Journal <strong>of</strong> <strong>the</strong> Academy <strong>of</strong> Marketing Science. pp.<br />

1-12.<br />

Yamin, S., and Mavondo, F. T., 2015. <strong>Organization</strong>al Innovation: Relationship with Functional<br />

Strategies and <strong>Organization</strong>al Performance. Springer International Publishing. pp. 296-<br />

301.<br />

Online<br />

Asda, 2015. Information about company. [Online]. Available through: <<br />

http://www.asda.jobs/stores/about-our-stores/>. [Accessed on: 26 May 2015].<br />

Gustafsson, A., Johnson, M. and Nilsson, L., 2001. The impact <strong>of</strong> quality practices on customer<br />

satisfaction and business results: product versus service organizations. [Pdf]. Available<br />

through:<br />

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Hart, W., 2007. Beating <strong>the</strong> Market with <strong>Customer</strong> <strong>Satisfaction</strong>. [Online]. Available through: <<br />

https://hbr.org/2007/03/beating-<strong>the</strong>-market-with-customer-satisfaction>.[Accessed on: 26<br />

May 2015].<br />

Hesselink, M. and Boselie, P., 2001. Empirical evidence for <strong>the</strong> relation between customer<br />

satisfaction and business performance. [Pdf]. Available through :<<br />

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2015].<br />

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Appendix 1: Questionnaire<br />

In <strong>the</strong> context <strong>of</strong> present study, questionnaire was prepared and circulated to customers<br />

to know <strong>the</strong>ir perception about customer service strategy which is used by Asda at <strong>the</strong><br />

workplace. Both open and close ended questions have been asked from <strong>the</strong>m to attain aim and<br />

objectives <strong>of</strong> <strong>the</strong> study in an appropriate manner. 25 customers have been considered for <strong>the</strong><br />

research by using random sampling technique.<br />

Name<br />

Age<br />

<br />

<br />

<br />

Between 18- 30 years<br />

31-50 years<br />

More than 20 years<br />

Gender<br />

<br />

<br />

Male<br />

Female<br />

How long you are associated with Asda and using <strong>the</strong> products and services <strong>of</strong> company?<br />

<br />

<br />

<br />

<br />

Less than 1 year<br />

2-3 years<br />

4-5 years<br />

More than 5 years<br />

Are you satisfied with <strong>the</strong> services <strong>of</strong>fered by Asda retail store?<br />

Highly dissatisfied<br />

Dissatisfied<br />

Neutral<br />

Satisfied<br />

Highly satisfied<br />

Do you agree with <strong>the</strong> fact that behavior <strong>of</strong> retail store employees is satisfactory in terms <strong>of</strong><br />

solving queries and delivery <strong>of</strong> products within stipulated time?<br />

Yes<br />

No<br />

What are <strong>the</strong> major factors that demotivated you as a customer and reduce your satisfaction<br />

level towards products and services <strong>of</strong>fered by Asda?<br />

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Poor technology up-gradation<br />

Waiting long time in a queue for accessing products and services<br />

Failed to quick delivery <strong>of</strong> products and services<br />

Behavior <strong>of</strong> staff-members within store<br />

O<strong>the</strong>r<br />

Do you agree with <strong>the</strong> fact that customer satisfaction and loyalty can influence <strong>the</strong> performance<br />

<strong>of</strong> Asda?<br />

Strongly disagree<br />

Disagree<br />

Neutral<br />

Agree<br />

Strongly Agree<br />

What is your perception about customer service strategy used by Asda to retain existing and for<br />

attracting new customers?<br />

-----------------------------------------------------------------------------------------------------------<br />

Please identify <strong>the</strong> ways through which Asda can overcome customer dissatisfaction and would<br />

increase firm’s performance by changing <strong>the</strong> customer service strategy?<br />

More emphasize on technology adoption and up-gradation<br />

Appointing more staff-members to solving queries <strong>of</strong> customers within specific time<br />

Company should focus on use <strong>of</strong> e-commerce and e-business technologies<br />

Providing training to employee and maintaining transparency within <strong>the</strong> entire<br />

process<br />

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Appendix 2: Update time plan<br />

ACTIVITY/WEEK 1 2 3 4 5 6 7 8 9 10 11<br />

<br />

Identification <strong>of</strong> problem<br />

To select topic for <strong>the</strong> study<br />

Evaluate <strong>the</strong> purpose and<br />

rationale behind study<br />

Review <strong>of</strong> literature is<br />

conducted by using<br />

secondary data collection<br />

Framed aim and objectives <strong>of</strong><br />

<strong>the</strong> study are defined<br />

Primary data collected from<br />

customers<br />

Follow research approach<br />

Define Research methodology<br />

in a proper way<br />

Structured questionnaire are<br />

prepared<br />

Questionnaire filled from<br />

customers<br />

Arrange data<br />

Apply appropriate technique<br />

Interpreted <strong>the</strong> data<br />

Explore finding <strong>of</strong> <strong>the</strong> research<br />

Provide recommendation and<br />

suggestions<br />

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Prepare report in a<br />

presentable manner<br />

At <strong>the</strong> end, report submit to<br />

instructor<br />

Revising <strong>the</strong> work<br />

Again re-submit report<br />

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