Impact of Customer Satisfaction on Sales for Adidas Brand

Running head: DISSERTATION
Customer Satisfaction Impact on Sales for Adidas Brand
Name of the Student:
Name of the University:
Author’s Note:

1DISSERTATION
Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ......................... whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the............... [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

2DISSERTATION
Abstract
The aim of the research is to determine and investigate how customer satisfaction impact on
sales for Adidas brands. Customers are one of the significant external stakeholders that
determine success, increased sales, profit and revenue maximization for the business
organizations. Recently, customer complaints have been witnessed that has resulted in customer
dissatisfaction thereby, affecting the sales of Adidas brand. One of the major issues that
customers have witnessed upon visiting the Adidas outlets is that the employees do not
communicate effectively. Another issue faced by the customers during their visit to the store is
that they do not have any one to attend them personally. As a result, the customers leave without
purchasing that is affecting the sales of the brand negatively. Undertaking the research will
provide an opportunity to address the potential issues that has resulted in inadequate and
compromised level of satisfaction for the customers of Adidas brand and how it affecting the
sales of the brand. Identifying the customer satisfaction issues will help in proposing suitable
methods for overcoming customer satisfaction issues and improving sales for Adidas brand.
Positivism philosophy, deductive approach, descriptive design and survey research strategy has
been used. Additionally, 50 customers out of the entire customer population of Adidas have been
selected as the sample size for the survey by using simple random probability sampling
technique. Primary data collection process and quantitative data analysis technique by
descriptive statistics by using SPSS tool that helps in understanding the customer satisfaction
impact on sales for Adidas and the analyzed data has been presented in the form of pie charts and
graphs.

3DISSERTATION
Adidas brand is failing to achieve and ensure customer satisfaction. the customers have also
complained in terms of ineffective after sales service, store and product layout and behavior of
the employees to the customers while offering any kind of services. The customers feel that they
should not visit Adidas brand of London branch for shopping that is a huge drawback for the
sales of the company. Lack of customer satisfaction is forcing the existing customers not to
return to the store and not recommending the store to others that is affecting the ability of the
brand to attract new customers. Therefore, it can be said that Adidas brand need to overcome the
issues and ensure customer satisfaction so that the sales of the company is not affected and
compromised. The suitable recommendations that can be used for improving the customer
satisfaction for Adidas brand are behavior of the employees, effective communication and
efficient after sales service.

4DISSERTATION
Table of Contents
Chapter 1: Introduction....................................................................................................................5
1.0 Overview...........................................................................................................................5
1.1 Problem statement.................................................................................................................5
1.2 Research aim..........................................................................................................................6
1.3 Research objectives...............................................................................................................6
1.4 Research questions.................................................................................................................6
1.5 Research rationale..................................................................................................................7
1.6 Structure of the dissertation...................................................................................................7
1.7 Summary................................................................................................................................8
Chapter 2: Literature review............................................................................................................9
2.0 Overview...........................................................................................................................9
2.1 Conceptual framework...........................................................................................................9
2.2 Concept of customer satisfaction...........................................................................................9
2.3 Factors affecting customer satisfaction...............................................................................10
2.3.1 Store or product layout.................................................................................................10
2.3.2 After sales service.........................................................................................................11
2.3.3 Effective communication..............................................................................................11
2.3.4 Personalized services....................................................................................................12

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2.3.5 Security.........................................................................................................................13
2.4 Benefits of ensuring customer satisfaction..........................................................................13
2.5 Challenges in ensuring customer satisfaction......................................................................14
2.6 Impact of customer satisfaction on sales.............................................................................14
2.7 Potential methods of ensuring customer satisfaction...........................................................15
2.8 Summary..............................................................................................................................15
Chapter 3: Research methodology.................................................................................................16
3.0 Overview..............................................................................................................................16
3.1 Research outline...................................................................................................................16
3.2 Research philosophy............................................................................................................16
3.3 Research approach...............................................................................................................17
3.4 Research design...................................................................................................................17
3.5 Research strategy.................................................................................................................17
3.6 Sampling technique and sample size...................................................................................18
3.7 Data collection process........................................................................................................18
3.8 Data analysis technique.......................................................................................................18
3.9 Ethical considerations..............................................................................................................19
3.10 Accessibility issues............................................................................................................19
3.11 Summary............................................................................................................................20
Chapter 4: Research and findings..................................................................................................20

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4.0 Overview..............................................................................................................................20
4.1 Analysis...............................................................................................................................21
4.2 Summary..............................................................................................................................35
Chapter 5: Conclusion...................................................................................................................36
5.0 Conclusion...........................................................................................................................36
5.1 Linking with objectives.......................................................................................................37
5.2 Future scope of the study.....................................................................................................38
Chapter 6: Recommendations........................................................................................................40
References......................................................................................................................................42
Appendix 1.....................................................................................................................................47
Survey questionnaire.................................................................................................................47

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Chapter 1: Introduction
1.0 Overview
Customers are one of the significant external stakeholders that determine success, increased
sales, profit and revenue maximization for the business organizations. According to Saeidi et al.
(2015), customer satisfaction is a leading indicator that measures the loyalty of the customers by
reducing churn and increasing revenue. It is necessary for business organizations to have a
satisfied customer base, as it helps in attracting new customers, as the existing satisfied and loyal
customer base helps in promoting positive word-of-mouth. In addition to, customer satisfaction
helps in gaining competitive advantage that ensures that more customers purchase from the
business organization irrespective of any situation. As a result, the sales of the business
organization increases that helps in generating profit and revenue (Agnihotri et al. 2016).
Adidas is a multi-national corporation that was founded in Herzogenaurach, Germany in
1924. The company designs and manufactures clothing, shoes and accessories and is the largest
sportswear manufacturer in Europe and second in the world after Nike. However, recently
customer complaints have been witnessed that has resulted in customer dissatisfaction thereby,
affecting the sales of Adidas brand (https://www.adidas.co.uk/).
1.1 Problem statement
Issues in respect to customer satisfaction have been witnessed in Adidas brand that is
having a negative impact on the sales of Adidas brand. One of the major issues that customers
have witnessed upon visiting the Adidas outlets is that the employees do not communicate
effectively. As a result, the customers are unable to know the latest products that have been
launched and fail to connect with the brand while shopping (Sayani 2015). On the other hand,