Currently the global business industry isfacing many challenges and
developments, which directly or indirectlyinfluence the marketing and
management procedures of an organization.In addition, globalization,
improvement of technologies and other vitalsocial factors had caused massive
and intensive competition in bothlocal and global market. Thus, maintaining
good relationship with thecustomers had always been a vital factors considered
by most businessesin order to maintain competitive advantage. This research
will mainlyfocus on the most important topic of the contemporary business world
–the issue about customer satisfaction. In this case, the author focuseson
analyzing the different factors and determinants which affect orinfluence the
customer satisfaction using the case of the Tesco Plc.,which is involved in the
retail and service industry. This topic isvery important because customers is
always considered as a vital forceor factor which affect the success,
competitive advantage and marketshare of a particular organization or company
in a specific industry orsector. For the past few years, companies and firms of
different types,sizes and forms have become aware and comprehend the
significance ofcustomer satisfaction. It is widely understood that it is far lesscostly
to maintain current customers, than it is to win and acquire newones, as a
result, it is becoming accepted there is a good relationshipand connection
between customer satisfaction, customer retention andthen profitability. For
most of the companies and organizations in theworld, customer satisfaction is
regarded as a vital measure of success(Hill and Alexander 2006).
1.1 Background of Research
Tesco Plc is the third largest groceryretail company in the world and
the largest retailer in the UK. Itsfirst store opened in Burnt oak, Edgware
North London in 1929. Thecompany has 2482 stores in the UK and 4811 worldwide
and has 400,000 employees. The products offered by the company are
groceries,banking, telecoms, fuel, film making, technical support,
electronics(technika). Its share of the home market is 30.5%. The company
operatesa store in every post code in the UK as at March 2008. In
addition,Tesco has a 100-unit Tesco Express chain, wherein it is the
biggestseller of gasoline in UK (Funding Universe, n.d.).
Tesco, for over the years, is considered to be one of
the successful marketers in Europe and recognized to be the top leaders of the
top retail supermarkets. According to Vasquez-Nicholson (2011), the UK ranking
in food retailing section is revealed to be Tesco (30.6% market share), Asda
(17.2% market share), Sainsbury (16.2% market share), Morrison (11.7% market
share), and Waitrose (4.2% market share) as of 2010, respectively. Because of
the market share, the organization is confident in turning a new leaf in the
competition in the coming years. The wide range of products and services that
Tesco Plc offered also left an impression that their management and marketing
areas are capable enough in handling the customer relations. Based on the study
of Yoruk and Radosevic(2000), the expansion strategies of Tesco enabled the
firm to touch the different culture. For an instance, aside from concentrating
in the Western region of the globe, Tesco also slowly emerging in Asian parts
particularly in Thailand and in South Korea (Yoruk&Radosevic, 2000;
Bessant&Pavitt, 2001). Furthermore, staying in a long-term competition and
acquiring the market share is not a work of a miracle but based on how Tesco
manages their capabilities in enhancing their profitability and maintaining
their relationship with the customers through satisfying them. From this point
of view, it gives an impression that Tesco isleading a good record for customer
service.
In relation to the customer satisfaction, the firms
are looking for the most effective way in which they can satisfy the needs and
wants of the customers and keep them loyal in their organization. Most of the
firms believe that profitability can be gained through the continuous
relationship in between the firms and customers which is actually true. However,
the challenge is keeping the customers loyal and faithful in their organization
and attracting other potential customers. In this way, the growth is the market
share can be realized even in a short period of time. But despite of this
benefit, many marketers are struggling in pointing out the specific ways in
addressing the customer satisfaction. For Gitman& McDaniel(2005), the
concept of customer satisfaction is a term that determines the capability of
the organization in meetings or surpassing the customer expectations through
their products and services being offered. Within the retail market, the
competition very intense by simply referring to the study of Vasquez-Nicholson
(2011), there is only natural that customers will expect the quality in services
and products and which will give the value for their money. Hence, the customer
satisfaction is considered to be an essential element in allowing the
organization to provide sound decisions and strategic response (Gitman&
McDaniel, 2005).
From the presented background in the study and the
overview on the customer satisfaction, Tesco Plc. might face a challenging task
in performing in Dunstable. Based on the official website of Dunstable (www.dunstable-ma.gov/),
it is a rural community that has a majority of population of about 3,300 people
(amongst 1000 +/- are households) and are concerned in farming. The community
is also more focused in volunteering and other participations to make the
valuable contributions more effective. However, other services are limited like
no taxi, bus service, or train that can be used as transportation and couple
with local stores such as gas pumping station, flower shop, small auto repair
shop, and Dunkin Donuts (with no drive-thru). There is also a shopping mall,
Pheasant Lane Mall, and other smaller shopping plazas and other malls that can
be also found in neighbouring towns.
From this point of view, the study can determine the
two interrelated problems.
·
First is how does Tesco
manage their customer relations.
·
And second is determining
the influential factors that can achieve the customer satisfaction.
1.2 Objectives
In line
with this, listed below are thespecific objectives of the study:
·
To evaluate the importance of
customer satisfaction in marketing efforts of Tesco, Plc.
·
To analyse the different factors
which directly or indirectly influence the customer satisfaction of Tesco
(Dunstable branch).
·
To recommend actions and
strategies to be applied to improve and maintain customer satisfaction.
1.3 Significance
The study sought its importance in the aim to provide
a quality research regarding the customer satisfaction. Although it appears
that customer satisfaction has been part of the many researches from recent
years, there is lacking in terms of determining its importance with the
real-world organizations. Definitely, the study can create a significant
contribution in both academic contexts and business. It is assumed that the
completion of the study will also attract the other research prior to the
result of the study and be open for other corrections or augmented research.
The underlying principle that involved in the study is
linking the customer satisfaction with the products and services being offered
by a retail giant like Tesco. Through this case, the trend of sales and
revenues can reflect the ability of the firm in keeping their customer and at
the same time continuously attracting other customers. With the growing numbers
of customers that Tesco have, it might be intriguing on how the firm manage to keep
their relationships with the customers. This might include the strategic
planning which is an essential requirement for an organization to be successful
in the industry. Tesco already created various advantages over its competitors
like Asda. However, because of the influence of the globalization and the idea
of international retailing, Tesco created strategic activities that will
continue the business to deliver the customers’ preferences.
1.4 Methodology Overview
In the overview of the methodology provided in the
study, the quantitative approach in research is applied. In order to validate
the quantitative approach, the primary method is augmented with the qualitative
measures which are related in the “reasoning” of the participants that supports
their answers. To gain the needed information, the study will use the
improvised questionnaires through the closed-ended questions. Survey and
interview will be provided to the participants who are chosen through the
convenience sampling. And in order to grasp the needs of the study, the
participants required in the study are the store-based employees with a
position such as marketing staff and management members.
1.5 Structure of the
Dissertation
The study is divided into five chapters wherein each chapter
focuses in organizing the ideas but in general, is in related and coordinated
in order to satisfy the aim of the study. Chapter 1 will discuss the problem
that the researcher needs to uncover. Through providing a significant
background of the topic including the overview or highlights of the previous
studies or researches, it can aid the investigation of the current study. In
addition, it clarifies the purpose of the study by presenting the specific
research aim, objectives, and addressing the research problems. Part of this
chapter is highlighting the significance and scope and delimitations to present
the basis and the importance of the study to society in general.
Chapter 2 discusses the organized review on the
previous studies and other relative information including the theories, models,
concepts and other significant information that can enrich the review on the
related literature and emphasizing the idea of customer satisfaction. By
addressing the related studies, the literature gaps can be emphasized. The
discussion will include the information related to corporate social
responsibility and the embedded theories and application among the
organizations.
Chapter 3 is the methodological part of the study. In
general, this involves the scientific method in order to solve the focused
problems/hypotheses found in the study. Therefore, the third part will state
the procedure applied in the study including the presentation and introduction
of the research techniques applied in the entire study to gather the necessary
data. In addition, this chapter also discusses the applied statistical
treatment that can interpret and analyse thoroughly the data gathered. Part of
the methodological aspect is the examination of the theories that can be
analyzed or appraised. At the end of the chapter, the information will be
recapitulated.
Chapter 4 is the part of the study that discusses the
review and results that were gained in applying the method. This part will
correspond to the research aim and objectives recognized in Chapter 1 and thus
employed the discussion of the answers. This chapter mostly includes the
discussion of the determined results and the critical assessment on the applied
method to collect the data needed. This chapter also welcomes the use of secondary
resources such as books, journals, trusted website, and other reliable
resources that can support the analysis of the study. Through gathering the
additional information, the theories or hypotheses identified can be tested and
interpreted.
The last section which is Chapter 5, shall comprise
the two sections namely conclusion and recommendations. This chapter will
deliver its theme pertaining to the results of the study and summarize the
results presented. Furthermore, this includes the limitations that were
discovered by the study. Through the reflection of the research, the researcher
can address the different issues or subject topics that can be used to drive
the future research. On the other hand, the conclusion of the entire study will
be recognized. This will highlight the summary of the results in order to
generate the recommendations that intend to apply in nature of practice of the
study focus.
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