Coles Customer Satisfaction: Influence of Retail Environment Factors

This report examines the influence of Coles supermarket's environment and customer demographics on customer satisfaction. It explores factors such as competition, supplier issues, and store environment aspects like ambience, design, and social factors. The research delves into how these elements impact customer behavior, perceptions, and overall satisfaction levels. It also considers demographic variables like age, income, and cultural differences and how these influence consumer preferences and satisfaction. Furthermore, the report discusses management decisions related to administrative structure, technological improvements, and strategies for enhancing customer satisfaction by addressing delayed deliveries and competition. A SWOT analysis is conducted to evaluate Coles' competitive position, highlighting its strengths, weaknesses, opportunities, and threats. The conclusion emphasizes the intense competition Coles faces and the need for continuous adaptation and innovation to maintain a competitive edge in the global market.

The Influence of Coles
Environment and Customer
Demographics on Satisfaction

Background
Cole supermarket is one of the leading Australian consumer
service chain and retail company with its headquarters in
Melbourne(Knox, 2015). The firm has dominated the retail market
due to its strong marketing strategies.
The main aim of the supermarket is to offer customers with high
quality and taste products at affordable prices.
The supermarket embraces proactive customer investment offer
as it strengthens the customers’ base preventing new entrance by
competitors.

According to Lee & Yang (2013), retail marketing is considered
as a form of marketing which involves undertaking activities
such as selling products to consumers through channels such
as stores, malls and other fixed locations.
Currently, the retail industry plays an important role in today’s
global economy because they enable the society meet its
current needs satisfactorily according to their living standards,
tastes and preference.

RESEARCH OBJECTIVES
 To determine the factors of retail store environment that have substantial
positive impact on Coles’ customer satisfaction.
 To critically analyse the variables of customer demographics influencing
customer satisfaction in a retail environment.
 To examine various satisfaction levels with regards to variables of
customer demographics.
 To evaluate how the influence of factors of retail store environment
affecting customer satisfaction differ across various customer
demographic segments.

RESEARCH QUESTIONS
 What are the factors of retail store environment that have substantial positive impact on Coles’
customer satisfaction?
 What are the variables of customer demographics influencing customer satisfaction in a retail
environment?
 Which are various satisfaction levels with regards to variables of customer demographics?
 How do the influence of factors of retail store environment, affecting customer satisfaction,
differ across various customer demographic segments?

Factors Leading to
Management Decision-
1. Competition
Coles supermarket has dominated in the market for many years
and gained a strong competitive advantage over its competitors.
However, currently, the company faces competition both locally
and globally with the Woolworths, ALDA and other companies
presenting such threats. With the entrance of Woolworths into
the market, Coles faced many challenges which resulted to
many managerial problems.

Literature Review
As the business environment becomes more proactive, retail businesses face global
economic challenges which compel them into evolving and changing with time to
meet the customer changing requirements and demand that changes with
time(Duong 2016).
Currently, online businesses are prospering with diverse alternatives offered for
customers to choose from leading to stiff competition among retailers in the
industry.

Literature Review (cont.)
Emergence of new threats made it difficult for the Coles supermarket to
undertake appropriate steps to continue being the leading retailer. Majorly,
management problems emerged from competition threats the company
experienced from emerging food suppliers.
Competition in the Australian grocery market is stiff making Coles supermarket
operations unsuccessful.

2. Issues with Suppliers
This is another managerial problem Coles supermarket faced.
The firm experienced delays in delivery of goods to its stores which
led to unavailability or insufficient products in shelves. This reduced
customer demand resulting to decreased customer satisfaction .In
the long run, the firm lost its competitive advantage.

3. Store Environment Factors
According to a research conducted by Mari & Poggesi (2013), the aspects of the store
environment which include ambience, design and social factors have a strong
influence on customer behaviors and perceptions. These factors are the determinants
of the customer level of satisfaction.
According to Allameh et al.(2015), the store environment not only influences impulse
buying but also patronage. Store environment is considered as the major determinant
factor influencing customer demand, sales and satisfaction.

Environment factors are a major determinant of the level of
customer satisfaction.
Customer satisfaction is commonly pursued by all types of
business both locally and globally. The concept of customer
satisfaction is becoming more complex and striking in the retail
industry (Dwivedi & Merriless 2013).
The study has taken into consideration store environment factors:
ambience, design and social to determine their influence on
customer satisfaction.

Customer Satisfaction
Research studies reveal that customer satisfaction can be
positively influenced by quality service, customer experience
and expectation.
The implication is that provision of quality goods and services
will result to improved customer satisfaction. This in turn leads
to increased customer demand resulting to increased company
sales and profitability.
Retailers should learn about the importance of various
environment factors and implement as a way of attracting
customers.