Literature Review: Customer Satisfaction and Service Quality in Retail

This literature review examines customer satisfaction and service quality within the retail sector, using Netto and Fakta as case studies. It explores concepts of consumer satisfaction, service quality terminology, and factors affecting customer satisfaction, such as departmental capacity, technological innovation, supplier responsiveness, and complaint management. The review synthesizes various academic perspectives, including those of Bansal and Taylor, Orel and Kara, and others, to provide a comprehensive analysis of the key components influencing service quality in retail. It highlights the importance of customer satisfaction for business success and emphasizes the need for effective communication and problem-solving to meet customer needs. The review also discusses the significance of both tangible and intangible service aspects, as well as the role of innovation and consistent quality standards in enhancing customer satisfaction and building customer trust.

Literature Review

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body..............................................................................................................................1
Components that is to be considered for the quality service in retail sector: ........................5
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The Literature review or LR is the evaluative analysis report which includes the details
and information about the selected area of study. It is the theoretical research that helps in the
determination of the nature of research. The customer satisfaction and the customer service
quality is required to be of the utmost quality in order to have a better idea of the various
operations of the company. Besides this, it helps in the better development of the goodwill with
the customers and build a good trust level. For the report the NETTO and Fakta is been taken as
the organisation of context. Both the firms are operating in the retail sector. This literature
review will look after the effective management of the customer satisfaction and the service
quality provided by both the firms to its customers.
Main Body
Various themes are been set up to discuss the customer satisfaction and the quality of the
services that are been taken into the consideration by both the firms and is been used for the
research purposes. Some major themes that are been taken into the consideration are:
Concept and meaning of consumer satisfaction:
The sustainable customer satisfaction is the key to the effective success of the
organisation that helps in the better development of the major operations of the company that
lays a deep impact on its operational capacity and profitability of the company. This is needed to
be seriously taken into the consideration for the better development of the organisation like Netto
and Fakta. According to the views of Bansal and Taylor (2015), the consumer satisfaction is the
marketing term that is used to depict the quality of the product or the services that are been taken
into the consideration by the company to sustain and retain its customers. It is a form of the
standard that helps the business firms to identify the level of the quality which they provide and
the extant of the improvement they need to make in their product or services.
Besides this, as per the opinion of Orel and Kara (2014), it will help the business firms
like Netto and Fakta to identify the various measures that they can be taken in order to identify
the scope of changes that are been required by the cited firms to improve its productivity and
profitability. This help the firms to meet the operational requirements of the company in a very
effective manner. The customer satisfaction is deeply based on various factors such as:
 Quality of the product or the service that is been provided by the firm.
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 Product or the service value, in respect to the price that is been charged by the firm.
 The time also plays a significant role in the customer satisfaction level. The timely
delivery of the service to the customer will lead to a better satisfaction level.
 The environmental conditions also lay an impact. Netto and Fakta must look after the
better management of the various operations that helps in providing the satisfaction level
to the customer while in the retail store.
As per the views of Hussain, Al Nasser and Hussain (2015), customer satisfaction is very
important and crucial for the better development of the firm and helps in the better management
of the different operation's and provide the sustainable benefits to the company. It acts as the
indicator for the company for the demand of its product and services.
Other than this, it helps in sustaining in the competition and get an advantage over its
rivals by meeting the customer's satisfaction level and improving the market value of the
company. According to Ennew, Binks and Chiplin (2015), it is economic and easy to regain and
retain the old and existing customers of the cited businesses rather than looking and acquiring of
the new ones. This also helps the firm to fulfil the needs and demands of the company to meet
the requirements of the customers and fulfil them in an effective member.
Terminology of Service Quality:
The service quality is required to be taken into the consideration by the better sustaining
of the various operations of the company and meet the requirements of the company as well as
customer's of the cited firms. As per the views of Hapsari, Clemes and Dean (2016), the quality
of the services and the customer satisfaction level is very closely related to each other. The
effective providing of the good quality service will help the firms like Netto and Fakta in the
retail sector to their customers.
The perception of the services will be different for the different authors. Some may
prefers the ambiance of the retail centre or the product quality while other may emphasis on the
services offered. The service may include the various factors such as the finished products or
goods, the assistance provided while purchasing or using the product and the post selling
services. The effective providing of the various services help the firm to improve its service
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quality and meet the requirements of the company that aids in the effective management of the
various operations of the company.
It also helps in improving the business operations of the company and meet the
requirements that helps in the effective management of the various operations of the company
and provide a better customer satisfaction level of the company. This helps in the effective
increase in the reliability, responsiveness and user interface of the business that help in the better
growth and development of the organisation in the market, providing a better productivity and
profitability.
In the opinion of Izogo and Ogba (2015), the effective customer care by the cited firm
will help the firm to meet the requirements of the customers, stake holders and the investors that
have laid a part in the better growth and development of the company and providing of better
customer satisfaction level. The most effective measure to identify and meet the requirements of
the customers and give out the effective quality of the services is the identification of the
problem or the issue, faced by the customer and giving the best solution to the problem leading
to the effective management of the various operations for the better customer satisfaction level.
The quality of the services that are been provided by the cited firms will help in resolving of the
services of the customer's in a very effective way.
Although, in contradiction to it, Han and Hyun (2015) states that the company can't take
into consideration, the generalised effective service measures for a specific customer or its
requirement. For instance, if a customer is having an issue with a particular product or the
services of the company, the cited firm will change or replace the particular product and not the
stock, as a whole. Other than this, the providing of the specific service of high quality to a
particular customer is quite time consuming and economically exhausting, for both company and
the customers. Primarily, the services can be tangible and non tangible, depending on the product
or the service manufactured or developed and provided to the customer by the company. Apart
from this, as per the opinion of Kaura, Durga Prasad and Sharma, (2015), the good quality of
service will help the company to gain a better word of mouth publicity, development of good
customer's trust level and improve the standard of the various operations, products and services
of the company. In contradiction to this, Chen, Chang and Lin (2017) states that the high
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standard retail centre will provide the better quality of services, leading to the good satisfaction
level of customers.
Factors that affect the customer satisfaction:
Multiple factors are been taken into the consideration by the organisation that helps in the
better management of the customer satisfaction. As per the views of Bansal and Taylor (2015),
the cited firms will look after the effective management of the various factors that can affect the
customer's goodwill and impact on the productivity and profitability of the company. Some
major factors or elements that affect the customer satisfaction level are:
 Departmental capacity of the supplier: The extant of the customer satisfaction is
deeply dependent on the production and selling capacity of the department or the outlet of
the company.
 Technologies and Innovative measures: The technological and effective measures that
are been taken into the consideration by the cited firms will also play a very deep role in
the management of the various operations that help in the effective providing of the
customer satisfaction level.
 Response provided by the supplier: The supplier will look after the effective
management of the various operations that helps in the providing of the better satisfaction
level to the customer and helps them to get the best out of the available services and the
products.
 Meeting the deadlines given to customer's: When the firm successfully meets the
deadlines that are been provided to the customer's for the product or the services. The
timely delivery will lead the company to have a better and positive review and meet the
requirements of the company in a very effective manner.
 Complaint management: The effective management of the complaints regarding the
service or the product by both the cited firms will also deeply impact the operations of the
company in a very significant manner.
 Compatible and hassle free functioning: The effective placing of the complaints and
their effective resolution will help the company to increase the level of the customer
satisfaction in the firm and meet the requirements of the company in a very effective way.
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Besides this, As per the ideas of Chen, Chang and Lin (2017), the effective use of the
innovative techniques that are been used by the cited firm, will help it to increase the customer
satisfaction. The approach of having the consistent quality standards and gaining the good output
for the customer's will help the company to meet the requirements of the better customer
satisfaction in a better way. The maintenance of the customer satisfaction level is a great
opportunity for an organisation and helps in the better management of the various operations that
leads to the effective handling of the various problems or the issues faced by the customers and
their effective handling. The providing of the quality service and the measurements will help in
meeting the requirements of the customer's and building a better trust level and relationship with
the business organisation. Apart from this, the better management of the operations will also lead
in the rise of the profitability of the company and helps the cited firm to meet the requirements of
the company as well as the customer's.
In contradiction to it, de Oña and de Oña (2014), says the better providing of the quality
service will help in the effective management of the various operations will lead to the better
customer satisfaction level and the chances of the company looking after the post selling services
will be negligible and rare. The effective management of the various operations will help in the
rise of the productivity and profitability of the firm and support the company to have a better
customer satisfaction level. But, as per the views of Kasiri and et.al. (2017), the core factor is
that the company must be able to practice the effective communication process and accessibility
towards the company, that will help the firm to gain a better understanding of the various
operations of the company and fulfil them in a better way. The good understanding of the various
operations in the organisation as well as the issues or the problems that are been faced by the
customer regarding the services or the products supplied to the customers and fulfilling their
requirements in a very effective manner.
Components that is to be considered for the quality service in retail sector:
In accordance to Saeidi and et.al., (2015), the quality service plays a very crucial an
important part in the effective management of the various operations that are been taken into the
consideration and helps in the building of the better goodwill and the trust level with the
customers and helps the firm to effectively management the various operations that helps in the
gaining of the better idea of the different measures the company must take to improve the quality
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of the services. Various principles that are been taken into the consideration by the firm for the
better providing of the quality services to the customer's such as:
 Having the idea of the customer's requirements: Having a very good idea of the
various operations that are been taken into the consideration by the cited firms will help
them to plan the services and provide them in a very effective manner.
 Taking timer to find the customer expectations: The companies will look after the
effective management of the various operations that will look after the effective
management of the various customer's needs and demands. But for this, they will require
the effective management of the time taken in execution of various operations.
 The feedbacks: after providing the services to the customer's, the company will look
after the reviews of the quality of the product or the services that will be given by the
customer to the business organisation. It can be negative or positive, depending on the
operations that are been followed by the user by the product or the services. This helps
the company to make the essential changes, if required to make the product or the
services better.
 Staffing: The effective and efficient staffing will also help in the better management of
the various operations of the cited firm. The staff must be capable to handle the various
requirements of the customers and must possess the effective communication and selling
skills to improve the profitability of the company.
 Products: The quality of the product or the service should be significantly high in order
to meet the requirement and expectations of the customer's in a very effective manner.
Also, the effective value of money factor will also play a very crucial and effective role
in the company.
 After service: The after service that is been seek after the effective delivery of the
product or the service to the customer will help in the affecting the various operations of
company and building a better customer satisfaction and trust level.
Other than this, as per the ideas of Ford, Paparoidamis and Chumpitaz (2015), the
efficient management of the various operations that are been followed by the cited firm and is
required for the better management of the various operations that will help in the effective
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management of the various operations. That will help the company to improve the operations of
the company to meet the requirements of the company and customers. This also help in
developing the better understanding with the consumers and generate a better relation between
the user as well as the retail organisation leading to the rise in productivity and profit margin of
Netto and Fakta. Other than this, the reliability and the efficiency to meet the requirement of the
customers and provide them with better output of the services that are been implemented by both
the firms.
Analyse the impact of service quality on customer satisfaction in retail sector:
The quality of the services plays a very deep and significant role in the management of
the various operation's that are been taken into the consideration by both the firms. This will help
them to meet the requirement of the clients or the customer's and fulfil their demands and needs.
The quality service and the customer satisfaction is deeply related to each other. The good
quality of the service or the products that are been provided to the user will help the cited firms
of the retail sector to improve their productivity and profitability. As per the opinions of Zameer
and et.al. (2015), the good quality of the services or products that are been provided to the
customer will not only help the firm to meet the requirements of the company and fulfil the
needs and demands effectively, but also impact the various operations of the company and
manage them effectively.
As per the views of Ali and Raza (2017), A good quality of the service will lead to the
better growth of the company and fulfil them to meet the requirements of the customers. Besides
this, it also leads to the rise in the trust level and reliability towards the companies. These also
lead to the better assurance that is been given to the customer by the firm over the service or the
product it purchases from the firm. As per the views of Yuen and Thai (2015), the effective
assurance is deeply based on the trust level that is been developed by the buyer, depending on the
services or the products that are been consumed by the customers. This will help in the better
management of the various operations of the company and take into consideration the various
measures that are meant to be followed by the firms to get a better customer satisfaction level.
Apart from this, the tangibility also play a very deep role in the gaining of the customer
satisfaction level by the firm. According to Veloso and et.al. (2017), the services or the product
quality should be visible or tangible in nature to the customer's of the cited firms. The customer
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will look after the effective management of the various operations that are been taken into the
consideration by the firm without affecting the productivity of the company. The change or the
resolution of the problem that is been visible or can be experienced by the customer will affect
the operations of the company.
Other than this, as per the ideas of Murali, Pugazhendhi and Muralidharan (2016), the
reliability and the assurance will give the company a sense of responsibility that the company has
to look after for the better management of the various operations of the cited firm and helps the
firm to meet the needs of the customers. This will also help them to incorporate the effective
measures to improve the quality of the services and the products that are been developed by
them.
Significance of Service Quality for delivery of effective customer satisfaction in retail sector:
The quality of the service lay a very deep and significant impact on the various
operations that are been taken into the consideration by the company to meet the needs and
requirements of the customers of the buyers in the retail sector. The retail sector is primarily a
customer oriented sector that helps the company to interact with the various customers. Apart
from this, the meeting of the better resources will help them to fulfil the various operational
requirements of the company and fulfil their demands. As per the opinion of Khan and Fasih
(2014), the interconnection of the service quality and the customer satisfaction will help the firm
to meet the requirements in a very effective manner. The adoption of the various innovative
measures to improve the quality of the services that will help the firm to take into the
consideration the improvement in the quality and meeting the requirements of the customer's and
resolving any problem or the issue that is been faced by them. Besides this, according to the
views of Saeidi and et.al., (2015), the better management of the various operations will help the
firm to take into the consideration and meeting the needs and demands of the customers. Apart
from this, as the retail sector is the customer oriented sector, both the firms will be effectively
able to interact with the customer's and can have a better idea about their needs and demands.
This will help both the cited firms to develop better products and services with a good quality
and resolve the issue's or the problems that are been faced by them. It leads to better reliability
and assurance of the services and meet the requirements effectively giving the customer a better
satisfaction level.
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Other than this, as per the views and ideas of Chen, Chang and Lin (2017), the high level
of the customer satisfaction and good execution of the operations leading to the development of
the various high quality product or the services will contribute in the better growth in the
management and operational efficiency of the company. This will give a positive rise to the
various operations and work efficiency, impacting the increase of productivity and profitability
of the cited firms. Other than this, the adoption of the various innovative measures, that will help
in the rise of the customer loyalty and satisfaction level, improving the sales and revenue
generation by the firm.
CONCLUSION
Thus, from the report it can be concluded that the customer satisfaction and good quality
of services lay a very deep impact on the various operations of the company. From the report it
can be said that the customer satisfaction and the customer service quality is required to be of the
utmost quality in order to have a better idea of the various operations of the company. Besides
this, the better development of the goodwill and trust with the customers. This literature review
helped in looking after the effective management of the customer satisfaction and the service
quality provided by both the firms to its customers. Besides this the impact of the quality service
on customer satisfaction and on the operations of the retail sectors are bee considered in this firm
with the views and ideas of the various authors.
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REFERENCES
Books and journals
Ali, M. and Raza, S.A., 2017. Service quality perception and customer satisfaction in Islamic
banks of Pakistan: the modified SERVQUAL model. Total Quality Management & Business
Excellence. 28(5-6). pp.559-577.
Bansal, H.S. and Taylor, S., 2015. Investigating the relationship between service quality,
satisfaction and switching intentions. In Proceedings of the 1997 Academy of Marketing Science
(AMS) Annual Conference. pp. 304-313. Springer, Cham.
Bansal, H.S. and Taylor, S.F., 2015. Beyond service quality and customer satisfaction:
investigating additional antecedents of service provider switching intentions. In Proceedings of
the 1999 Academy of Marketing Science (AMS) Annual Conference. pp. 75-82. Springer, Cham.
Chen, P.S., Chang, T.C. and Lin, Y.L., 2017, July. Customer Satisfaction and Quality of Service
Towards Public Servants in a Governmental Education Training Center in Taiwan.
In International Conference on Innovative Mobile and Internet Services in Ubiquitous
Computing. pp. 831-840. Springer, Cham.
de Oña, J. and de Oña, R., 2014. Quality of service in public transport based on customer
satisfaction surveys: A review and assessment of methodological approaches. Transportation
Science. 49(3). pp.605-622.
Ennew, C.T., Binks, M.R. and Chiplin, B., 2015. Customer satisfaction and customer retention:
An examination of small businesses and their banks in the UK. In Proceedings of the 1994
Academy of Marketing Science (AMS) Annual Conference. pp. 188-192. Springer, Cham.
Ford, J.B., Paparoidamis, N. and Chumpitaz, R., 2015. Service quality, customer satisfaction,
value and loyalty: An empirical investigation of the airline services industry. In The Sustainable
Global Marketplace. pp. 187-187. Springer, Cham.
Han, H. and Hyun, S.S., 2015. Customer retention in the medical tourism industry: Impact of
quality, satisfaction, trust, and price reasonableness. Tourism Management. 46. pp.20-29.
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