Impact of Customer Satisfaction on Adidas Sales: Dissertation

This dissertation investigates the impact of customer satisfaction on the sales performance of the Adidas brand. The study examines the critical role of customer satisfaction as a key driver of sales, profit, and revenue maximization for businesses. The research identifies key issues affecting customer satisfaction within Adidas outlets, such as ineffective employee communication and a lack of personalized service, which are negatively impacting sales. Utilizing a positivism philosophy, deductive approach, descriptive design, and a survey research strategy with a sample of 50 customers, the study aims to understand the relationship between customer satisfaction and sales. The dissertation explores factors like store layout, after-sales service, communication, and personalized services, providing recommendations for improving customer satisfaction and, consequently, boosting sales. The research methodology includes primary data collection and quantitative analysis using SPSS, with findings presented through charts and graphs. The study concludes with recommendations focused on employee behavior, effective communication, and efficient after-sales service to enhance customer satisfaction and drive sales growth for Adidas.

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

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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.

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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.

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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.

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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,

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another issue faced by the customers during their visit to the store is that they do not have any
one to attend them personally. The customers are not even offered drinks or snacks and helped
with product details while shopping from Adidas. The employees do not even communicate and
know the product requirements of the customers and help them in finding the most suitable one.
As a result, the customers leave without purchasing that is affecting the sales of the brand
negatively (Pizam, Shapoval and Ellis 2016).
1.2 Research aim
The aim of the research is to determine and investigate how customer satisfaction impact
on sales for Adidas brands.
1.3 Research objectives
The objectives of the research are:
 To understand the concept of customer satisfaction
 To critically analyze the factors affecting customer satisfaction for Adidas brands
 To assess the relationship between customer satisfaction and sales for Adidas brands
 To provide suitable recommendations for improving customer satisfaction for Adidas
brands
1.4 Research questions
The questions of the research are:
 What do you mean by customer satisfaction?
 What are the factors affecting customer satisfaction for Adidas brands?
 What is the relationship between customer satisfaction and sales for Adidas brands?

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 What are the suitable recommendations for improving customer satisfaction for Adidas
brands?
1.5 Research rationale
Analyzing the impact of customer satisfaction on sales for Adidas brand is significant
because this allows identifying the customer satisfaction gaps and impact of the gaps on sales for
Adidas brand. 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. Additionally, addressing the customer
satisfaction issues for Adidas brand will enable assessing the relationship between customer
satisfaction and sales (Izogo and Ogba 2015). Therefore, comparing and contrasting sales for
Adidas in the presence and absence of satisfied customer base can be done easily.
Additionally, the undertaking the research will also help in identifying the main factors
that is resulting in customer dissatisfaction for Adidas brand thereby, finding the potential
reasons why Adidas is unable to ensure customer satisfaction appropriately. Identifying the
customer satisfaction issues will help in proposing suitable methods for overcoming customer
satisfaction issues and improving sales for Adidas brand (Shin 2014).
1.6 Structure of the dissertation
The entire dissertation is divided into six distinctive chapters namely introduction,
literature review, research methodology, research and findings, conclusion and
recommendations. Each chapter is developed chronologically, as this helps in maintaining the
flow of the entire research thereby, achieving the research aim and accepting and rejecting the

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formulated hypothesis. Therefore, determining the impact of customer satisfaction on sales for
Adidas brand can be undertaken successfully.
1.7 Summary
Therefore, in this chapter, it can be summarized that recently customer satisfaction is an
issues for Adidas brands that is having an impact on the sales of the company. The customers
visiting the outlets of Adidas brand are left unsatisfied for different reasons that are affecting the
sales of the brand largely. As a result, it is important to ensure customer satisfaction for Adidas
brand so that sales can be improved distinctively.

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Customer satisfaction Sales
Store or product layout
After sales service
Effective communication
Personalized services
Security
Chapter 2: Literature review
2.0 Overview
As the name indicates, this chapter reviews past opinions and views of different authors and
researchers about the selected research topic. This helps in gathering in-depth knowledge and
understanding of the identified independent and dependent variables based on which the entire is
structured and developed. The views and opinions of different authors are critically evaluated
that helps in understanding how customer satisfaction has an impact on sales for Adidas brand.
2.1 Conceptual framework
Figure 1: Conceptual framework
(Source: Created by the Author)
2.2 Concept of customer satisfaction
Customer satisfaction is one of the most frequently used terms in marketing. According
to Hill and Brierley (2017), customer satisfaction is defined as the number or percentage of the