HI6008 - Retail Supermarkets & Customer Satisfaction in Australia

This literature review explores the impact of retail supermarkets on customer satisfaction in Australia. It examines the structure of the Australian retail industry, market strategies employed by major players like Woolworths and Coles, and the factors influencing industrial growth and pricing. The review also delves into consumer behavior in the sector, highlighting the importance of customer satisfaction and loyalty. Key research questions are posed to investigate the relationship between supermarket performance and customer satisfaction, as well as factors affecting supermarket growth and strategies for achieving consumer satisfaction. The methodology section outlines the use of quantitative research methods, data collection techniques, and analysis processes to address these questions. This assignment provides a framework for understanding the dynamics of the Australian retail market and its impact on customer satisfaction, which is available for download with other solved assignments on Desklib.

Running head: MANAGEMENT
Management
Name of the student
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Author Note:

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Table of Contents
Introduction......................................................................................................................................5
Background..................................................................................................................................5
Problem Statement.......................................................................................................................5
Significance of the Project...........................................................................................................6
Thesis Statement of the Assignment............................................................................................6
Project Objective.........................................................................................................................6
Project Scope...............................................................................................................................6
Literature Review............................................................................................................................7
Introduction..................................................................................................................................7
Analysis of the Retail Industry Sector of Australia.....................................................................7
Study of Market Strategies in Australian retail Sector................................................................8
Analysis of Industrial Growth.....................................................................................................9
Consumer Behavior in the Sector..............................................................................................10
Research Questions........................................................................................................................10
Primary Research Question.......................................................................................................10
Secondary Research Questions..................................................................................................10
Research Methodology..................................................................................................................10
Introduction................................................................................................................................10

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Quantitative Research................................................................................................................11
Research Instrument and Quantitative Data Analysis Process..................................................12
Research Design........................................................................................................................12
Research Strategy......................................................................................................................12
Research Approach....................................................................................................................13
Research Instruments.................................................................................................................13
Data Analysis.............................................................................................................................13
Sampling and Sample Size........................................................................................................14
Interviewing and Questionnaire Design....................................................................................14
Reliability and Validity of Data.................................................................................................14
Research Limitations.....................................................................................................................15
Time Schedule...............................................................................................................................15
Table No 1: Timeline of the Research.......................................................................................16
Figure No 1: Gantt chart............................................................................................................16
Conclusion.....................................................................................................................................16
Reference List................................................................................................................................18
Appendices....................................................................................................................................20
Appendix 1.................................................................................................................................20
Figure No 2: Market Share of Australian Supermarkets...........................................................20
Appendix 2.................................................................................................................................21

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Figure No 3: Market Share of Australian Supermarkets...........................................................21
Appendix 3.................................................................................................................................22
Figure No 4: Market Share of Australian Supermarkets...........................................................22

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Introduction
The upcoming research will be dealing with the impact of retail supermarket in Australia
and the customer satisfaction. The following proposal will be providing a basic idea on the
different types of areas that will be covered in the research to identify the current state of the
Australian retail market and how has their performance in the market helped to improve the
satisfaction amongst the customers of the organization. The proposal will pave the way for the
research on the same topic in a much organized and detailed manner.
Background
Supermarket shopping is often cited as a self service retail environment structure. The
following markets use the platform of the organization to build a strong bond with the customers
of the business. It also helps the organization to analyze and judge the level of customer
satisfaction and serve the customers accordingly. The Australian Supermarkets and grocery
stores have seen a rise in the recent past due to the expansion of business activities by old
warhorses like Woolworths, Wesfarmers, Metcash and Progressive Trading Limited as well as
the emergence of new business enterprises in the form of Kaufland, Aldi and some other small
ones. Different surveys have shown the crisis situation in the supermarkets and as a result there
has been a sharp freefall in the number of customers visiting the stores. The research will
basically stress on the current state of the Australian supermarkets and their impact on the level
of customer satisfaction.
Problem Statement
The main problem that will be dealt with in the research will be the problems related to
the Australian supermarkets and their failure of the management of these organizations to satisfy

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the customers. Though Australia is well renowned for the presence of a large number of
supermarkets, the failure to satisfy the customers have been turning them to other more suitable
options like small convenience stores and e-markets.
Significance of the Project
Studying the satisfaction level of the customers from their business transactions in the
supermarkets is perhaps the most significant part of the following research. The research attains
further significance as because a large chunk of the customers have slowly inclined towards the
e-commerce and prefers to buy products directly through different online shopping applications.
Thesis Statement of the Assignment
The thesis statement of the assignment can be as follows; “Australian Supermarkets and
Customer Satisfaction- A detailed Study”.
Project Objective
The research objectives that have been marked to achieve are as follows;
a. To analyze the structure of the retail industry in Australia
b. To analyze the strategies of the market in the industry
c. To correctly analyze the growth of the retail market in Australia
d. To determine the different factors for pricing
e. To determine the consumer behavior in the following sector
f. To verify the need for consumer satisfaction in the industry
Project Scope
The subject chosen to be studied in the research will have a great scope as it is one of the
most unique topics that determine the customer satisfaction levels of Australian customers in the

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present days when e-commerce has gained a larger ground in the retail market. The study will
focus on the retail industry of Australia and will also give a look into the customer satisfaction in
the country. However, thinking on the other hand the selection of Australia as the specific
country limits the scope of the project by both demography as well as geography. The outcome
of the research in such a case will only be applicable in Australia.
Literature Review
Introduction
The following chapter of the proposal has emphasized on the different kinds of features
in terms of Australian Retail Market and the customer satisfaction levels in Australia. The
research will be considering a number of different theories and models related to customer
satisfaction and Australian supermarkets. In order to gather necessary knowledge on the current
topic of the research, the implementation of the theories and models along with linking them
with the research will be the most important part of the project (Bogomolova et al. 2016). The
review chapter of the research will be accommodating all these specific model based research.
Therefore, the literature review chapter provides immense importance to the research. The
successful implementation of the different theories will thus enable the success of the research. A
short review of the research has been provided in the proposal to highlight a sample of the
different subjects and researches that will be undertaken to complete the following research.
Analysis of the Retail Industry Sector of Australia
According to, Bogomolova et al. (2016) retailing in Australia is termed as one of the best
growth sectors among all the different industries currently operating in the country. Despite
having a weak growth in the wages and a rise in the debt market has shown a rise in the growth

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of the retail market that is again supported by the fact that the Australian customers have been
able to spend in a proper manner according to the perceived value of the increased assets.
Grocery retailers of the country experienced a stronger growth than the non grocery retailers in
the review period (Phillipov 2016). The growth in the grocery sector can largely be explained by
the success of the discounters which has continued to show signs of large scale improvements
through the aggressive expansion policies of Aldi as it has carried out an aggressive retail market
expansion strategy in Australia. The firm which entered the Australian market just in 2001 has
already opened more than 500 different stores to become the third major giants of the industry.
Study of Market Strategies in Australian retail Sector
Woolworths and Coles have generally focused to market share rather than profit margin
by using price reduction as one of the main competitive strategies for a long time. The annual
report of Coles stated that Coles is generally committed to the customer led strategy that helps to
provide a better value, quality and a better service to the customers of the country (Grimmer
2018). The retail service provided by the organizations is mostly focused on making life better
for the people and also building a trust amongst the management and the customers of the
business organization (Grimmer 2018). The Australian retailers are focusing not only on costs
and looking to build volume in a tough operating environment. However they are giving rise to
different kinds of fundamental strategic shifts in the following sector (Phillipov 2016). Multiple
retailers operating in the Australian retail industry has been carrying on different kind of
operations in the market that are quite unique. Currently Australian retailers are trying to adapt to
the fundamental changes that are facing the industry (wesfarmers.com.au 2018). Most of the
retailers are currently trying to focus on smaller and convenient stores that are much easily
accessible and are also seen to incur less loss and more revenues.

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Analysis of Industrial Growth
As mentioned earlier, the retail supermarket of Australia has evolved considerably in the
last few decades in Australia. The major drivers of the growth have been the evolution of the
technology, innovation as well as globalization. According to, Phillipov (2016) this is the major
reason for the organization being exposed to different kinds of international influences. In the
beginning of the 20th Century the retail scenario of Australia was based mostly on high street
retailing along with a dominant departmental scale model that was generally driven by
technological and societal changes in the organization (Ariyawardana Ganegodage and Mortlock
2017) . The following model gradually changed into a numerous product ranges, cheaper goods
model due to the use of economy of scale.
Major Factors Determining Pricing
According to, Ariyawardana Ganegodage and Mortlock (2017) most of the Australian
retail market organizations is centered around small market, large distances and a large
population. This requires economy of scale to gain a competitive edge in the organization.
Achieving economies of scale in the market helps the organizations to ensure large growth and
increase in the popularity and profit levels of the Companies. Apart from these the management
of major players like Woolworths, Wesfarmers and Coles compete for investment and suitable
returns from the shareholders of the organization (Ariyawardana Ganegodage and Mortlock
2017). Pricing is largely dependent on both the internal as well as the external factors. The
internal factors can be classified as customer intimacy as because customers are often given the
topmost priority in the business (Pearson 2017).

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Consumer Behavior in the Sector
As mentioned earlier, consumers play a vital part in the Australian retail supermarket
industry as two of the most major competitors strategies are totally based on the satisfaction of
the customers. Woolworths with 90 per cent, Coles with 88.4 per cent and IGA with 84.7 per
cent. Moreover, Woolworths is ahead of Coles on customer loyalty, as Woolworths’ main
shoppers spend 70.9 per cent of their total supermarket spend with the retailer, compared with
Coles, at which main shoppers spend 67.4 per cent.
Research Questions
Primary Research Question
The primary research question for the research will be;
1. Whether the performance of the Australian retail supermarkets has a direct influence
on customer satisfaction?
Secondary Research Questions
1. What are the factors affecting the growth of the Australian Supermarkets?
2. How can the supermarkets in Australia attain consumer satisfaction?
Research Methodology
Introduction
Research Methodology generally consists of different kind of methodological tools that
are used by the researchers during the conduction of the research. The methodology of the
research provides a systematic and scientific approach to describe the exploration of the given

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topic of the research with the help of different kind of methods. Apart from this it also helps to
predict the particular research phenomenon by using the various research tools. In this chapter,
the researcher evaluates the different research methodological tools such as philosophical
stances, research approach, design along with data collection and data analysis techniques. In this
chapter, the researcher also provides suitable justifications of selecting the particular research
tool in accordance with the research topic.
Quantitative Research
According to, Brannen (2017) Quantitative Research is defined as the systematic
investigation of the different types of the phenomenon by gathering quantifiable data and by
performing statistical, mathematical and computational techniques. The following research
generally gathers information from either the existing or the potential set of the customers that
are mostly related to the research topic. The collection of the data will be carried on mostly
through the use of online polls, online surveys and online questionnaires. The results can be
depicted by using different kind of numerical. After careful understanding of the different
numbers to predict the future of a product or service and make changes accordingly. There are
generally two different kinds of quantitative methods that are used in the different researches.
They are;
1. Primary Quantitative Researches- Based on collection of primary data from sample
population and then analyzing the data by means of statistics.
2. Secondary Quantitative Researches- Based on analysis of earlier primary data used in
other researches.

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Research Instrument and Quantitative Data Analysis Process
There are different kinds of research instruments in quantitative research instruments.
This includes the likes of Questionnaire and tests. Questionnaire includes a set of questions that
will be provided to the research participants to answer. On the other hand tests are different
analytical tests taken on the research participants that include interviews.
Research Design
The three most widely used designs in a research are exploratory, explanatory and
descriptive research designs. The research design that will be used to conduct the following
research is the explanatory research design (Mackey and Gass 2015). The explanatory research
design will be generally used to identify the cause and effect relationship between the dependent
and the independent variables. The research will be based on the evaluation of the impact of the
dependent variable on the independent variable. The explanatory research design will be the best
fit to conduct the following research accordingly. The main reason for the selection of the
research design will be the selection of previous researches on Australian supermarkets and
customer satisfaction.
Research Strategy
A scientific research generally has four different kinds of strategies in the form of case
study, action research, interview and survey. Each one of the research strategies has their own
style of implementation. In the following research, the survey research strategy has been used.
The survey research strategy has been helpful as because it has helped the researcher to collect
and gather data from the perspective of the Australian supermarket.