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

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)