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
Name of the university
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.

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Research Approach
The deductive Research Approach will be used in this particular research. The selection
of the deductive research approach is based on the ability to relate and gather data from
previously existing concepts and theories (Brannen 2017). The general data acquired in regards
to the research topic requires an evaluation from a statistical perspective. This will only be
possible due to the use of deductive approach. The use of inductive approach in this case will
make the research emphasize on developing new theories and concepts.
Research Instruments
The two instruments of research will include Data Analysis and Sampling Size.
Data Analysis
According to, Barnham (2015) the collected data can be presented using tables, bar charts
and graphs. Moreover, statistical analysis techniques can also be used in order to evaluate the
data accurately (Mackey and Gass 2015). At certain cases, data analysis using the tables and the
bar charts can be inaccurate. As a result, the discussions deduced from the data analysis will be
incorrect thereby, giving inappropriate results. Due to this, statistical analysis is generally
preferred for the research.
In the case of the current research, the research will be using SPSS for analyzing the
collected data. SPSS is statistical software that can be used for logical non-batched and batched
statistical analysis of the variable of the survey. SPSS will help the research to analyze the data
collected during the process of survey uses cross tabulation (Flick 2015). The data will be
summarized through descriptive statistics that includes percentages and frequencies. Pie charts,

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graphs and tables will also be used appropriately to present the collected data for ease of
understanding and comparison.
Sampling and Sample Size
In order to conduct a survey an appropriate sampling technique has to be used. There are
two types of sampling methods namely probability and non-probability technique. The current
research has selected the systematic probabilities sampling technique (Creswell and Creswell
2017). This is because in order to understand the impact of customer satisfaction levels on the
performance of Australian Supermarkets. The research has used systematic probability sampling
technique in order to avoid the bias.
Sampling relates to the selection of the people who will be needed for the analysis of the
research. A sampling size of 50 people will be taken for the research. The number of employees
selected will be 35 while 15 different managers of the company will be interviewed for getting
the exact idea of the strategies of Australian supermarkets.
Interviewing and Questionnaire Design
Interview relates to taking tests of different people participating in the research while
questionnaire means providing online questions to the research participants for them to answer.
The analysis will then be done according to the responses. The following research will be using
both the interview and the questionnaire process to complete the study.
Reliability and Validity of Data
Reliability is the internal consistency or stability of the measuring device and validity is
the degree to which an instrument measure what it is purports to measure. The choice of the
secondary research articles helps to guarantee the reliability and validity of the data.

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Research Limitations
A research gap is said to be the course of the research is related to a deeper investigation
of consumer behavior in the sector to understand the driven forces behind consumer decision-
making. Another gap is the just the two major competitors in the sector has been studied and an
overall view of the other competitors may provide better understanding of the market. Apart
from this the other major gaps in the following research will be the detailed comparison of the
consumer satisfaction levels in the different retail markets of Australia. The following limitations
will tend to limit the ability of the research to achieve the aims and objectives of the research.
Time Schedule
Task Name Duration Start Finish
Research Proposal
Australian
Supermarkets
174 days Mon
1/28/19
Thu
9/26/19
Selection of the
Research Topic
1 day Mon
1/28/19
Mon
1/28/19
Approval of the
Research Topic
2 days Tue
1/29/19
Wed
1/30/19
Identification of the
Secondary Data
Sources
45 days Thu
1/31/19
Wed
4/3/19
Start of the
collection of the
Secondary data
1 day Thu
4/4/19
Thu 4/4/19
End of Data
Collection
60 days Fri 4/5/19 Thu
6/27/19
Submission of the
Draft
1 day Fri
6/28/19
Fri
6/28/19
Assembling the
total Secondary Data
35 days Mon
7/1/19
Fri
8/16/19
Finalizing the total
Research in a
Organized manner
28 days Mon
8/19/19
Wed
9/25/19
Submission of the
Final Research
1 day Thu
9/26/19
Thu
9/26/19

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Table No 1: Timeline of the Research
Source: (As Created by the Author)
Figure No 1: Gantt chart
Source: (As Created by the Author)
Conclusion
To conclude, the research was based in the impact of retail supermarket structure in
Australia and customer satisfaction. The project objectives and scope are presented at the start of
the research and they are followed by the literature review which was divided into six sections,
retail supermarket industry structure in Australia, market strategies in the industry, industry
growth, major factors that determinate pricing, consumer behavior in the sector and research
gaps. The research has demonstrated that Australia has an oligopoly market in the retail

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supermarket industry, with two major players and a third one coming up. The Australian industry
has potential growth, even though the profit margin is lower than in other industries. New
players will come in the following years and may change the industry. Customers are the biggest
assets for this industry as two major competitors use them as their driven strategy; consumer
behavior in this sector is linked to reputation and accessibility. Finally, a further investigation
should continue the research in order to cover the research gaps mentioned above.

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Reference List
Ariyawardana, A., Ganegodage, K. and Mortlock, M.Y., 2017. Consumers' trust in vegetable
supply chain members and their behavioural responses: A study based in Queensland,
Australia. Food Control, 73, pp.193-201.
Barnham, C., 2015. Quantitative and qualitative research: Perceptual foundations. International
Journal of Market Research, 57(6), pp.837-854.
Bogomolova, S., Vorobyev, K., Page, B. and Bogomolov, T., 2016. Socio-demographic
differences in supermarket shopper efficiency. Australasian Marketing Journal (AMJ), 24(2),
pp.108-115.
Brannen, J., 2017. Mixing methods: Qualitative and quantitative research. Routledge.
Coles Annual Report (2018). Retrieved from https://www.wesfarmers.com.au/docs/default-
source/reports/wes18-044-2018-annual-report.pdf?sfvrsn=4
Creswell, J.W. and Creswell, J.D., 2017. Research design: Qualitative, quantitative, and mixed
methods approaches. Sage publications.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Grimmer, L., 2018. The diminished stakeholder: Examining the relationship between suppliers
and supermarkets in the Australian grocery industry. Journal of Consumer Behaviour, 17(1),
pp.e13-e20.

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Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
Pearson, G., 2017. Current Issues for Consumer Protection Law in Australia. In Consumer Law
and Socioeconomic Development (pp. 199-208). Springer, Cham.
Phillipov, M., 2016. ‘Helping Australia Grow’: supermarkets, television cooking shows, and the
strategic manufacture of consumer trust. Agriculture and human values, 33(3), pp.587-596.
Retail World (2017), Spotlight on Australia’s supermarkets and grocery industry. Retrieved from
https://www.retailworldmagazine.com.au/spotlight-australias-supermarkets-grocery-industry/
Retail World (2018).The state of supermarkets and grocery industry. Retrieved from
https://www.retailworldmagazine.com.au/state-supermarkets-grocery-industry/
Sultan, P., Wong, H.Y. and Sigala, M., 2018. Segmenting the Australian organic food consumer
market. Asia Pacific Journal of Marketing and Logistics, 30(1), pp.163-181.
Woolworths Annual Report (2018). Retrieved from
https://www.woolworthsgroup.com.au/icms_docs/195396_annual-report-2018.pdf

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Appendices
Appendix 1
Figure No 2: Market Share of Australian Supermarkets
Source: (Ariyawardana Ganegodage and Mortlock 2017)

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Appendix 2
Figure No 3: Market Share of Australian Supermarkets
Source: (retailworldmagazine.com.au 2017)

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Appendix 3
Figure No 4: Market Share of Australian Supermarkets
Source: (retailworldmagazine.com.au 2017)