A Study on LIDL: Impact of Service Quality on Customer Satisfaction

This report investigates the impact of service quality on customer satisfaction at LIDL, a prominent international discount supermarket chain. The research aims to understand the concept of service quality, determine its impact on customer satisfaction, and identify current trends in the retail sector. The literature review covers service quality, its impact on customer satisfaction, and current retail trends like influencer marketing and personalized retail experiences. The methodology employs a quantitative research approach, using a questionnaire to collect data from 30 respondents. The results, presented through frequency analysis, reveal that a majority of respondents understand service quality, believe high-quality services enhance customer satisfaction, and identify tangibility, reliability, and assurance as key service quality dimensions. The findings also highlight the importance of personalized retail experiences and the impact of service quality on customer satisfaction. The report recommends that LIDL focus on providing high-quality services, gathering customer feedback, and training customer service representatives to improve performance and enhance customer satisfaction. The report concludes with a summary of findings and recommendations for LIDL.

Shopping in store
experience at Lidl

Table of Contents
INTRODUCTION.....................................................................................................................................3
Aim of research.......................................................................................................................................4
Research questions..................................................................................................................................4
Research objectives.................................................................................................................................4
LITERATURE REVIEW.........................................................................................................................5
Service quality.........................................................................................................................................5
Impact of service quality on customer satisfaction in LIDL....................................................................5
Current trends in the retail sector.............................................................................................................5
RESEARCH METHODOLOGY.............................................................................................................7
Research methods....................................................................................................................................7
Data collection.........................................................................................................................................7
Sampling.................................................................................................................................................7
RESULTS/DISCUSSION.........................................................................................................................8
RECOMMENDATIONS........................................................................................................................11
CONCLUSION........................................................................................................................................11
REFERENCES........................................................................................................................................12

TITLE: To determine impact of service quality on customer satisfaction in an organization.
A study on LIDL.
INTRODUCTION
Service quality is viewed as output of service delivery system mainly in context of pure
service systems. It is related to the customer satisfaction as well as perception of consumers. The
main focus of an organization is to provide the high quality of services so that their needs can be
satisfied and they can sustain at market place for longer time period (GOODS and FLORIANI,
2020). LIDL is German international discount supermarket chain that mainly operates more than
12000 stores across United States and Europe. This company focus on giving the better services
to its customers and also provide them many attractive offers to sustain them for longer time.
Aim of research
To determine impact of service quality on customer satisfaction in an organization. A
study on LIDL.
Research questions
 What is service quality?
 How service quality impact on the customer satisfaction in LIDL?
 What are the different current trends in the retail sector?
Research objectives
 To understand the concept of service quality.
 To determine impact of service quality on customer satisfaction in LIDL.
 To identify the current trends in the retail sector.

LITERATURE REVIEW
Service quality
On the basis of Euphemia F T Yuen & Sian S L Chan (2021), Quality is lifeblood of
the service delivery companies, as this leads to improved client loyalty, a competitive edge and
the long-term profitability. Services are never-ending interactions between customers and service
providers. The quality is related to the standard or criteria which a service provider guarantees.
High service quality can help service delivery firms achieve a competitive advantage over their
competitors. Service quality also include a good administration which focuses on the well-
trained employees, a meaningful program offering as well as its impact on customers (Hänninen
and Paavola, 2021).
Impact of service quality on customer satisfaction in LIDL
According to opinion of C.N.K. Naik (2021) Retail service quality differs from those of
any other product/service setting. Because of the distinct nature of the retail service, quality
improvements and metrics in retail cannot be treated in same manner that they are in services. In
the retail industry, quality must be considered from the standpoint of both products and services.
Customer satisfaction is determined by a consensus of goods or services that deliver the highest
level of customer satisfaction. Based on type of service provided to the consumer at a certain
purchase occasion, result of a comparison as happiness, pleasure or ambivalence (Janssens and
et. al., 2020).
Current trends in the retail sector
As per viewpoint of TARA JOHNSON (2021), Retail business is undergoing massive
transformations. Customer behavior is shifting and they have higher expectations than ever
before. Retailers must be aware of several crucial industry trends in addition to ensuring ensure
their companies are successful today and in future. Current trends in retail sector mention below:
New approach to influencer marketing- Selfies, carefully written captions and meticulously
manipulated product photos was once the norm in influencer marketing. However, in 2020, they
will witness a significant change in way companies as well as influencers collaborate. Influencer
content has gradually evolved to a rawer, authentic appearance and this trend will continue
through 2021 (Molinillo and et. al., 2020).

Provide personalized retail experience- In retail business, personalization generally entails
businesses making recommendations based on a customer's preferences, location, order history,
and past searches. Simple services are used by retailers to generate tailored experiences.
Chatbots that improve consumer engagement and involvement, text messages which offer order
updates, online and telephonic contact and other methods are included (Hunneman, Verhoef and
Sloot, 2021).

RESEARCH METHODOLOGY
Research methods
The qualitative and quantitative are two different types of research methods. The
quantitative method is easier together as well as analyses the information. It is based on the
numbers and more accurate provide the more accurate information. On the other hand,
qualitative method provides the detailed information as well as theoretical information regarding
the particular subject area (Ohvanainen, 2020). In order to conduct the present investigation,
there has been a quantitative research method considered because it provides the accurate and
factual information related to impact of service quality on customer satisfaction in an
organization.
Data collection
Data Collection is related to collect the information and data regarding the particular
subject by using the different sources. Primary and secondary are the two different methods to
connect data. In conducting the present investigation, there has been primary method of Data
collection considered because it provides the fresh and new information regarding impact of
service quality on customer satisfaction in an organization. To collect the information from
primary method, there has been questionnaire developed as there are different questions are
developed for the given specific area (Rennicks, 2020).
Sampling
Sampling is related to set of the population and choose the small sample size to collect
the information regarding the particular subject area. Probabilistic and non-probabilistic are two
different methods of sampling methods. In order to collect the information in this research, there
has been probabilistic sampling method considered and choosing the 30 respondents. They are
selected on random basis and the main reason behind using this method is that it provides the
equal chance to the selected respondents to give their opinion about impact of service quality on
customer satisfaction in an organization (Sá, 2020).

RESULTS/DISCUSSION
QUESTIONNAIRE
Q1) Do you have understanding about service quality?
a) Yes
b) No
Q2) Does providing the high quality services helps in customer’s satisfaction?
a) Yes
b) No
Q3) What are the different dimensions of service quality?
a) Tangibility
b) Reliability
c) Assurance
Q4) What are the different current trends in the retail sector?
a) Provide Personalized Retail Experience
b) New Approach to Influencer Marketing
c) Online Stores in the Offline Spaces
Q5) In which manner, service quality impact on the customer satisfaction?
a) Positive manner
b) Negative manner
Q6) According to you, what are the different factors affecting on customer’s satisfaction
within Lidl?
a) Customer understanding
b) Service
c) Technology
Q6) Recommend ways to improve the service quality to attract the more customers?
THEME 1: Understanding about service quality
Q1) Do you have understanding about service quality? Frequency
a) Yes 28
b) No 2

a) Yes b) No
0
5
10
15
20
25
30
28
2
Interpretation: As per the mention graph, it has been stated that there are 28 respondents and
according to them they have understanding about the service quality in a detailed manner. The
service quality is made related to customer’s comparison of the service expectation as this is
related to performance of the organization. There are 2 remaining respondents which are not
aware about the service quality in detailed manner.
THEME 2: High quality services helps in customer’s satisfaction
Q2) Does providing the high quality services helps in customer’s
satisfaction?
Frequency
a) Yes 25
b) No 5

a) Yes b) No
0
5
10
15
20
25
25
5
Interpretation: According to an opinion of 25 respondents that high quality of services is
helpful in providing the better satisfaction to customers because the customers want high quality
services which can able to satisfy their needs and wants. There are remaining 5 respondents
which are not agree with the given statement.
THEME 3: Different dimensions of service quality
Q3) What are the different dimensions of service quality? Frequency
a) Tangibility 10
b) Reliability 10
c) Assurance 10
a) Tangibility b) Reliability c) Assurance
0
1
2
3
4
5
6
7
8
9
10
10 10 10

Interpretation: From the 10 respondents that tangibility is a main dimension of service quality
because it includes physical appearance of physical service facilities, personnel who do servicing
formal communication materials and all the tangible components of the service provider facility.
There are 10 respondents and according to them reliability is most necessary because it differs
from product reliability in that this is related to ability of service provider in order to perform
promised services in an accurate manner. There are remaining 10 respondents which are agree
with assurance because knowledge and courtesy of staff members as well as their ability to
inspire the confidence.
THEME 4: Different current trends in the retail sector
Q4) What are the different current trends in the retail sector? Frequency
a) Provide Personalized Retail Experience 12
b) New Approach to Influencer Marketing 10
c) Online Stores in the Offline Spaces 8
a) Provide Personalized
Retail Experience b) New Approach to
Influencer Marketing c) Online Stores in the
Offline Spaces
0
2
4
6
8
10
12
12
10
8
Interpretation: As per the mention graph that there are 12 respondents and according to them
providing personalized retail experience is a main current trend in retail sector. There are 10
respondents and they said that the current trend in retail sector is introducing the new approach to
the influencer marketing. There are remaining 8 respondents and according to them it is
necessary to convert the online stress in the offline because in this present time people are more
interested to buy the products and services online as comparison to go to the stores.

THEME 5: Service quality impact on the customer satisfaction
Q5) In which manner, service quality impact on the customer
satisfaction?
Frequency
a) Positive manner 20
b) Negative manner 10
a) Positive manner b) Negative manner
0
2
4
6
8
10
12
14
16
18
20
20
10
Interpretation: There are 20 respondents and they said the service quality impact in a positive
manner because this is helpful in satisfy the needs and wants and customer so that they can be
retained at market place for a longer period of time. 10 remaining respondents which said that
service quality develops negative impact on the customer satisfaction.
THEME 6: Factors affecting on customer’s satisfaction within Lidl
Q6) According to you, what are the different factors affecting on
customer’s satisfaction within Lidl?
Frequency
a) Customer understanding 10
b) Service 10
c) Technology 10

a) Customer
understanding b) Service c) Technology
0
1
2
3
4
5
6
7
8
9
10
10 10 10
Interpretation: On the basis of 10 respondents that customer understanding is one of the main
factor that impact on customer satisfaction within an organization. If the company is not able to
understand the customer requirement, then it develops the negative impact on the customer’s
mind-set. There are 10 respondents and according to them the service is a main factor because if
firm does not able to provide better service to customers then this negatively impact on the
organizational profitability. There are 10 respondents agree with technology factor.