Factors Affecting Customer Satisfaction in Retail Organizations - A Study on ASDA

This research project aims to identify the factors that directly impact the satisfaction level of customers in retail organizations, with a focus on ASDA. The study will explore the concept of customer satisfaction, its importance in enhancing profitability, and the factors influencing customer satisfaction in ASDA. The research methodology includes data collection through a questionnaire and analysis using qualitative techniques.

Research project

Table of Contents
Task 1...............................................................................................................................................3
1.1 Research Project specifications........................................................................................3
1.2 Factor that contribute to the process of research project .................................................4
1.3 Literature review..............................................................................................................4
1.4 Research Methodology.....................................................................................................6
1.5 Appropriate Plan ............................................................................................................10
Task 2.............................................................................................................................................11
2.1 Questionnaire..................................................................................................................11
2.2 Proposed research investigation ....................................................................................13
2.3 Record and collect Relevant data..................................................................................13
Task 3.............................................................................................................................................17
3.1 Techniques of research ..................................................................................................17
3.2 Interpret and analysis result............................................................................................17
3.3 Recommendation............................................................................................................26
Conclusion ....................................................................................................................................26
References......................................................................................................................................27

Task 1
1.1 Research Project specifications
Background of study
Customer satisfaction plays a significant role in the retail industry and thus, organization
can enhance the profit and gain competitive advantage. Along with this, if customers are highly
satisfied with the products and services then it will lead to overall success of organization. Only
those organizations can success in the retail sector that focus on customer satisfaction. The
present study is conducted so that factors can be identified which are influencing customer
satisfaction of ASDA. Along with this, the way in which customer satisfaction helps in
increasing the overall profitability of Asda will be identified. Currently, customers are facing
issues related to inappropriate products and services which are served by Asda. In this report,
researcher will discuss different methods for satisfying the customers. Topic:- To identify factors that directly impact the satisfaction level of customers in retail
organizations of UK- A study on ASDA Aim:-To determine those influential factors that directly impacts upon the satisfaction
level of customers in retail organizations of UK.
 Objectives:- On the basis of research aim following objectives are made for conducting
overall research in effective manner.
 To explain the concept of customer satisfaction in retail based organizations of UK.
 To understand the importance of customer satisfaction in enhancing the profitability of
ASDA.
 To identify the factors influencing customer satisfaction in ASDA To recommend way for increasing the satisfaction level of customers in ASDA.
Research question
Research question are main part of study which show the way to researcher for collecting
data. All the question will be formulated below on the basis of aims and objective of research
 Explain the concept of customer satisfaction for an Asda?
 Explain the importance of customer satisfaction in enhancing the profitability of Asda?
 To evaluate the factor influencing the customer satisfaction at Asda?

 To recommend suitable techniques
1.2 Factor that contribute to the process of research project
The above selected topic is suitable for in modern era for retail industry. There are some
factor which influencing the customer satisfaction and profit of organization. Asda required to
adopt techniques so that it can maximize profit and retain customer for longer period of time.
Along with this, topic customer satisfaction is selected so that its importance can be understand
for success of organization. There are many methods and techniques which company can adopt
for satisfying its customer.
1.3 Literature review
Theme 1: Concept of customer satisfaction
According to the views of Oliver (2014) customer satisfaction is defined as total number
customer who reported experiences of product and services with an organization product and
services by rating its satisfaction goals. Along with this, customer satisfaction is a part of
experience of target people related to a particular organization’s products and services. It is
believed that of customers are highly satisfied with a specific product they stick with the same.
For every organization that is selling products and services to customers need to focus on
satisfying them by making and delivering innovative products and services with high quality.
Saeidi, Saeidi and Saaeidi (2015). stated that customer satisfaction is an abstract concept which
includes some factors like quality of products and services, location from where product is
purchased and price of the same. Satisfied customers help organization in its growth and
development while dissatisfied customers may put a negative impact on the success of firm. In
addition to this, customer satisfaction is not only related to the quality of product, but it also
relates with price, location and way of promotion. If price of any product or service is too high
then customers may get dissatisfied and avoid buying the same. For organization, it is necessary
to focus on the overall satisfaction of customers. Their satisfaction leads to brand loyalty, repeat
purchase and positive word of mouth.
Theme 2: Importance of customer satisfaction for enhancing the profitability
According to the views of Wu (2013) customer satisfaction plays a significant role in
increasing the overall profitability. It is the key in creating a strong relationship with customers
and for retaining them for longer period of time, it is hard for any organization to make long term

relation with customers. For this, company needs to deliver valuable time to its customers
regularly. Along with this, continuous satisfaction leads to loyalty towards a particular brand. At
the same time, when consumers start trusting on the firm and organization confident that it
continued deliver high quality product and services, then overall profit of company can
increases. If any organization’s goal is to make high profit, then it requires taking feedback from
its customers so that improvement can be made in products and services as per their
expectations. Oliver (2014). explained that organization needs to keep its customers satisfied so
that they would become loyal towards the business. Once company gains their loyalty then no
other factor can become barrier in the success of organization. Company needs to deliver high
quality products to its customers regularly and on time. In a competitive market, organization is
required to focus on satisfying customers because it is the only way for retaining them and
earning higher profit. There is a direct impact of customer satisfaction on company’s
profitability. For example, if a customer is satisfied with a particular product then he will
recommend the same to his friends, family and relatives. This will encourage other people to buy
the same which will help in increasing the overall profitability of organization. As per the views
of Mithas, Krishnan and Fornell, (2016) satisfied customers continuously buy specific product
and stick with a particular brand. For every organization, it is necessary to keep them satisfied
and happy so that they will not switch to other brand’s product and services. Price insensitivity is
key benefit for the loyal customer. Only repeat purchase consumer who are ready to pay any
price for the product because they are highly satisfied. If organization delivers high quality
services to its customers then it becomes possible for them to increase the price and gain
competitive advantage.
According to the view of Kim, Vogt and Knutson (2015) there are differed factor which
influence the customer satisfaction such as quality and price of product and Customer services
provided by the organization. Along with this the most important factor which affect customer
satisfaction is the employee customer satisfaction. It is so because employee who are satisfied
with its job, salary etc. then it will be more helpful toward solving issues of customer. For
example, if employee are paid good salary and flexible working hour then they will convince its
customer to buy their company product and services. Apart from this if customer issues and
complaints are not solved on time by organization then they will highly dissatisfied with
company product and may switch to other brand product. Organization not need to focus on

only delivering a product they also need to keep some factor in consideration that keeping the
price of product affordable, solving customer queries on time and making product according to
their need and demand. As per view of Srivastava and Kaul (2014) .if customer are not satisfied
with behaviour of employees then they may discontinue purchasing the product and services.
Along with this, they will also share negative word of mouth communication related to product
with its friends and family. Sometime customer also dissatisfied with price of product and
services because it is not possible for every consumer to buy high price
1.4 Research Methodology
 Research approach: Research approach is study which help in carrying out whole study
in a systematic manner. Along with this, in this there are tow type of approach that is
inductive and deductive which can be used by researcher (Mackey and Gass, 2015). In
the present study inductive research approach will be used so that factor influencing the
level of customer satisfaction can be analysed. This approach is used so that specific
information can be find out.
Illustration 1: Research approach
(Sources: Type of marketing research, 2016)

 Research design: Research design help in identifying the problem linked with study.
Moreover, it is a systematic plan in which there are different type of research design that
are exploratory, case study, descriptive etc (Taylor, Bogdan and DeVault, 2015). this all
help in carrying out whole research in effective way. In present study researcher will use
exploratory research design so that factor which are impacting the profit of organization
and customer satisfaction.
Illustration 2: Research design
(Source: Research-design method, 2017 )
 Data collection: In data collection there are different techniques used so that information
can be collected for a customer satisfaction (Tarone, Gass and Cohen, 2013). There are
two sources of data primary and secondary. For conducting entire research both sources
of data collection will be used. In primary data information is gathered from customer of
Asda while in secondary research inform is collected from the books and internet

Illustration 3: Data collection method
(Source: Primary data collection method. 2016 )
 Sampling: In sampling different people or sample or people are selected so that primary
information can be collected (Lushey and Munro, 2015). There are different type of
sampling method such as probabilistic and non probabilistic. In this present research
random sampling method is used which comes under non probabilistic sampling method.
Here, 20 Customers of Asda will be selected randomly for conducting survey.

Illustration 4: Sampling method
(Sources: Type of marketing research, 2016)
 Data analysis: There are two different tools will be used for analysing the data. There
are tow techniques which help in analysing the data that is quantitative and qualitative. In
present study qualitative technique will be used for analysing the data with the help of
theme. All the collected information will be presented in table.

1.5 Appropriate Plan
Activity/Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Preparation of research proposal
Aims and objective of research
proposal
Writing literature review
Research methodology
Primary data collection
Analysis of data and
interpretation
Conclusion
Recommendations
Submission to instructor
Changes Based On instruction
given by tutor
Final Submission

Task 2
2.1 Questionnaire
Name:
Age:
Gender:
1.) How many times you buy Asda company product?
 Once in a month
 More than once
 every week
2.) Are you satisfied with quality of product and services of Asda?
 Highly satisfied
 satisfied
 Neutral
 Highly dissatisfied
 dissatisfied
3.) Are you satisfied with the price of product of Asda?
 Highly satisfied
 satisfied
 Neutral
 Highly dissatisfied
 dissatisfied
4.) Are you satisfied with customer complaint services of Asda?
 Highly satisfied
 satisfied
 Neutral
 Highly dissatisfied
 dissatisfied
5.)Are you satisfied with discounted pricing strategy of Asda?
 Highly satisfied

 satisfied
 Neutral
 Highly dissatisfied
 dissatisfied
6.) Are you satisfied with the atmosphere and location of Asda retail store?
 Highly satisfied
 satisfied
 Neutral
 Highly dissatisfied
 dissatisfied
7.) Product and services of our company meet your needs and wants?
 Yes
 no
8.) What factors affecting your buying decision?
 Price
 Quality
 Customer services
9) Are you satisfied with employee behaviour at work place of Asda?
 Highly satisfied
 satisfied
 Neutral
 Highly dissatisfied
 dissatisfied
10.) Would you like to recommend Asda company product and services to your friends?
 Yes
 No

2.2 Proposed research investigation
The present report is conducted for making research proposal effective and for
investigating the factors which are affecting customer satisfaction. Along with in this report
inductive research techniques for deep studying the factor which is impacting customer level of
satisfaction. Along with this research design is used for making research more effective in this
reporter used inteprivitesm research us used (Celik, Bilisik and Baracli, 2013.). There are two
method used for collecting the information that is primary and secondary. Secondary research is
conducted so that information which is already published can be collected along with this
researcher collected primary information through survey in which it selected randomly 20
customers of Asda. At last collected data is analysed by a qualitative technique. Under this theme
are prepared which help in analysing the collected information.
2.3 Record and collect Relevant data
Theme 1: There are many customers who buy Asda product more than once in a month.
Frequenc
y
percentag
e
Once in a month 6 30
More than once 10 50
every week 4 20
20 100
Theme 2: Many participant are less satisfied with quality of product and services of Asda.
Frequenc
y
percentag
e
Highly satisfied 4 20
satisfied 6 30
Neutral 1 5
Highly dissatisfied 2 10
dissatisfied 7 35
Theme 3: There are many customers who are dissatisfied with price of product of Asda
Frequenc percentag

y e
Highly satisfied 5 25
satisfied 4 20
Neutral 2 10
Highly dissatisfied 3 15
dissatisfied 6 30
20 100
Theme 4: High number of customer are satisfied with customer complaint services.
Frequenc
y
percentag
e
Highly satisfied 4 20
satisfied 6 30
Neutral 1 5
Highly dissatisfied 2 10
dissatisfied 7 35
20 100
Theme 5: Responded are highly satisfied with discounted pricing strategy.
Frequenc
y
percentag
e
Highly satisfied 10 50
satisfied 7 35
Neutral 0 0
Highly dissatisfied 2 10
dissatisfied 1 5
20 100
Theme 6: The atmosphere and location of Asda retail store dissatisfied the customer
Frequenc
y
percentag
e

Highly satisfied 5 25
satisfied 4 20
Neutral 2 10
Highly dissatisfied 3 15
dissatisfied 6 30
20 100
Theme 7: No product and services not meet the needs and wants of customer.
Frequenc
y
percentag
e
Yes 8 40
no 12 60
20 100
Theme 8: Price factor affect the buying decision of respondent
Frequenc
y
percentag
e
Price 11 55
Quality 6 30
Customer services 3 15
20 100
Theme 9: customer are highly satisfied with employee behaviour of Asda
Frequenc
y
percentag
e
Highly satisfied 6 30
satisfied 5 25
Neutral 2 10
Highly dissatisfied 3 15
dissatisfied 4 20
20 100

Theme 10: There are many customers who not recommanded the product of Asda to their
friends
Frequenc
y
percentag
e
Yes 8 40
No 12 60
20 100

Task 3
3.1 Techniques of research
There are some research analysis techniques which is very effective for the Asda to
increase the customer satisfaction level. There are different method which researcher can used
but in this report researcher used thematic method because it help in deep understanding of the
factor which are negatively impacting the customer satisfaction. Further questionnaire is
prepared which is distributed to randomly selected customer. Along with this question asked
from customer help in analysing the factor which impact the profit of organization. Question are
asked from customer related to company product and services, quality and employee behaviour
toward them. Secondary data is collected through internet and books so that decision can be
made. All the information is collected help in making decision which taking help in satisfying
the customer and in increasing the overall profitability of organization. There are two type of
research evaluation technique that is qualitative and quantitative techniques. The researcher used
qualitative techniques so that it can turn raw material into meaningful information. There are
different way for interpreting the data. Chart is made below which show the result of
questionnaire made for identifying the factor which are impacting the customer satisfaction.
3.2 Interpret and analysis result
Thematic analysis
Theme 1: There are many customers who buy Asda product more than once in a month.

Interpretation; From the above chart it can be stated that there are 10 responded who buy Asda
product more than once in a month, while there are 6 Participants out of 20 who purchase the
product and services once in a month. Along with this there are only 4 customers who buy every
week. Hence Asda company need to use different marketing strategy so that it can easily increase
the sale and profit of organization. For this company can also focus on issue of customer which
are becoming barrier from buying company product.
Theme 2: Many participant are less satisfied with quality of product and services of Asda.
6
10
4
Once in a month
More than once
every week

Interpretation; Aforementioned chart reflect that there are 7 participants who are no satisfied
with quality of product and services. On the other hand there are 6 customers out of 20 who are
only satisfied with quality while 1 of them is neutral who is neither satisfied nor dissatisfied.
Along with this, there are 4 responded who are highly satisfied and 2 are highly dissatisfied.
Therefore, it can be stated that there are 9 customers who are not satisfied, so company need to to
focus on improving the quality of product and services so that people attracted towards its
company and there satisfaction level can be increases. It also help in increasing the overall
profitability of Asda.
Theme 3: There are many customers who are dissatisfied with price of product of Asda.
4
6
1
2
7
Highly satisfied
satisfied
Neutral
Highly dissatisfied
dissatisfied
5
4
2
3
6
Highly satisfied
satisfied
Neutral
Highly dissatisfied
dissatisfied

Interpretation; From the above chart it can be stated that there are 6 customers who are highly
dissatisfied with the price of product and services. There are 3 customer who are dissatisfied with
price of Asda product and out of 20 there are only 2 who are neutral who are unable to decided
that they are satisfied or dissatisfied. On the other hand, there are 5 participant who are highly
satisfied while 4 are only satisfied. From the above collected information Asda company need to
used different pricing strategy so that it can increase the level of satisfaction of customer. Along
with this company can used skimming pricing method so that it can increase the customer base.
Theme 4: High number of customer are satisfied with customer complaint services.
Interpretation; aforementioned chart show that there are 7 customer who are dissatisfied with
the customer compliant services. There are complaints are not responded on time. On the other
hand there are 6 participant who are satisfied with customer complaint services. Apart from this
there is only 1 respondent who is unable to decide while there are 2 people who are highly
dissatisfied and 4 are highly satisfied. Hence it can be stated that company need to provide
training facility to its employee so that they respond quickly to customer and resolve their issues.
4
6
1
2
7
Highly satisfied
satisfied
Neutral
Highly dissatisfied
dissatisfied

Along with this company need to higher skilled employee who can give their best effort to
organization.
Theme 5: Responded are highly satisfied with discounted pricing strategy.
Interpretation; According to the given scenario it is reflected that there are 10 people out of 20
who are highly satisfied with discounting pricing strategy while there are 7 who are only
satisfied. On the other hand there are 1 responded who are not satisfied while there are 2 who are
highly dissatisfied. Hence there highly satisfied customer are more as compare to dissatisfied so
company need to carry on this strategy for targeting large number of customer. It help in survive
in competitive market and in increasing company profit.
Theme 6: The atmosphere and location of Asda retail store dissatisfied the customer
10
7
2
1
Highly satisfied
satisfied
Neutral
Highly dissatisfied
dissatisfied

Interpretation; From the above chart it is clear that there are 6 respondents who are dissatisfied
with the interior designed and atmosphere of Asda retail store. Along with this there are 3 people
out of 20 who are highly dissatisfied with the organization location and 5 customers are highly
satisfied and 4 are only satisfied. Apart from this there are only 2 respondents who neither
satisfied nor dissatisfied with the retail store interior deign and there surrounding atmosphere.
Hence Asda company need to take some action for improving its interior design and atmosphere
so that customer when visit their not get dissatisfied with its surrounding environment. Along
with this layout of retail store should be attractive so that it can grab the attention of customer.
There are many customer who visit retail store by seeing its front view so it should be attractive
for satisfying the customers
Theme 7: less product and services meet the needs and wants of customer.
5
4
2
3
6
Highly satisfied
satisfied
Neutral
Highly dissatisfied
dissatisfied

Interpretation; From the above chart it can be interprets that there are only 8 respondents who
are satisfied with the product and services. While there are 12 participants who are not satisfied
with product and services of Asda. It stated that product and service are not according to the taste
and preference of customer. Hence, Asda company need to identify needs and wants of consumer
and on basis of result they need to make product and services. So that customer can highly
satisfy with Asda company product and services. Along with this, company need to focus on
making attractive product which grab the attention of customer.
Theme 8: Price factor affect the buying decision of respondent
8
12
Yes
no

Interpretation; From the above chart it can be stated price is the biggest factor which is
impacting the buying behaviour of customer. There are 11 respondents who are not satisfied with
the price of Asda company product and services. Along with this there are some, 6 participant
who are not happy with the quality of product and services. On the other hand there are more
than 3 customers who are not satisfied with the customer services this become barrier from
buying product of Asda. Hence, company need to focus on skimming pricing techniques so that
it can easily satisfy the customer. Along with this company can also put offer on any occasion of
festival on its product so that company can sale can be increase.
Theme 9: customer are highly satisfied with employee behaviour of Asda
11
6
3
Price
Quality
Customer services
6
5 2
3
4
Highly satisfied
satisfied
Neutral
Highly dissatisfied
dissatisfied

Interpretation: Aforementioned chart show that there are more than 4 customers who are highly
satisfied with the employee behaviour. While, there are 4 out of 20 who are no satisfies with
customer behaviour. Along with this there are 3 participants who are highly dissatisfied with
behaviour of employee. There are 2 respondents who are nor satisfied neither dissatisfied with
employee behaviour and their way of treating to customer. Therefore, company need to take
some action towards its employee so that they treat customer in polite manner. Along with this
company need to provide training and development facility to its employee so that it treat
customer in well manner and satisfy them.
Theme 10: There are many customers who not recommanded the product of Asda to their
friends
Interpretation ; From the above chart it show that there are 12 people who never recommend
Asda product and services to their friends and relatives. While there are only 8 out of 20 who
recommend their product and services to their colleagues. Hence it show that there are high
number of people who are no satisfied with overall product and services of Asda. So company
need to take some step for improving its product and services. Along with this it can make
8
12
Yes
No

product of high quality so that people get satisfied and ready to buy product and recommend
them to others.
3.3 Recommendation
 It is recommended that Asda need to focus on discounting pricing strategy so that it
satisfy customer from its product and services price.
 Further Asda need to focus on making long term relation with its customer so that it can
retain them for longer period of time.
 Asda company can used advance technology so that it quickly respond to the customer
issues and resolve their problem.
 Asda company can focus on making high quality product according to the customer taste
and preferences so that it can easily retain customer for longer period of time.
 Employee of organization need to treat its employee in well and polite manner so that
employee not get disappoint with organization or switch to other brand product.
 Employee should be provided training and development facility so that they can fulfil the
needs and demand of people and also make them satisfy with their attractive services.
 Asda company can used skimming pricing technique and provide discount and offer to
their regular customer so that customer satisfaction level can increase.
Conclusion
From the above research it can be concluded that there are various key factor which
impact the customer satisfaction levels. Further there are various method and approached used
for analysing the results. Their are two sources from which data and information is collected that
is primary and secondary. Questionnaire are prepared for analysing the collected information int
primary data collection. Further it can be concluded that through survey there are various issues
related to customer satisfaction is identified. Further company need to take some step for
improving the performance of employee so that it came to know that it can satisfy the customer
or not. Further there are different techniques company can used to enhance the marketing
activities because it help in improving the overall performance of organization. Conclusion

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