Customer Satisfaction Analysis: Dominos New Zealand Case Study Report

This report provides a comprehensive literature review and case study analysis of customer satisfaction, focusing on Dominos New Zealand. It defines customer satisfaction, its importance in marketing, and its impact on customer loyalty and repeat purchases. The report explores the concept of customer satisfaction, including the disconfirmation model, and examines different levels of customer satisfaction. A detailed analysis of Dominos New Zealand's customer satisfaction strategies is provided, including its feedback procedures, product offerings, delivery methods, pricing strategies, and target market. The report also examines how Dominos utilizes various techniques to exceed customer expectations and maintain a competitive advantage. The report concludes with insights into how businesses can improve customer satisfaction and foster loyalty, emphasizing the significance of meeting and exceeding customer expectations.

Running head: CUSTOMER SATISFACTION
CUSTOMER SATISFACTION
Name of Student
Name of the University
Author Note

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Literature Review
Concept of Customer’s satisfaction
Customers satisfaction is a term related to the concept of marketing. It is related to the
customers’ expectations and how well a company crosses those expectations of the customers
though the supply of various goods and services (Hill & Brierley, 2017). This concept of
customer satisfaction is related to the percentage of customers and the number of customers
whose experience with the firm, its products and services and others crosses the customer
satisfaction. The MASB or the marketing accountability standards board has defined the term
customer satisfaction, the purpose of the same, the structure and others. These days businesses
make customer satisfaction a part of the business scorecard by making it one of the KPI or the
key performance indicator. Customer satisfaction can also provide a differentiated benefit to the
company and therefore has become a part of the marketing strategy. In other words, company’s
who are able to satisfy customers more than their competitors can gain an advantage over its
competitors because of the customer’s satisfaction and loyalty. A satisfied customer is motivated
to carry out repeat purchase and when a customer carries our repeat purchase he becomes a loyal
customer of the company. Market perception can be created with the help of customer
satisfaction indicators. This is so because the customer satisfaction is an indicator of loyalty and
purchase intentions (Agnihotri et al., 2016). The main purpose of using customer satisfaction as a
key indicator is: these data’s collected relating to customer satisfaction, analyzed and
disseminated within the organizations can help in sending the message of tending to the
prospective customers and to ensure that they have positive experience and satisfaction with the
company’s goods and services. Through proper sales and market share of the company it can be

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said if the company is actually performing well or not (Rangkuti, 2018). However, it is the
customer satisfaction that will determine if the company will be able to get retained customers
and repeat purchases by the customers in future. It has been found through various studies that
customer satisfaction and retention are two related concept and if a customer is satisfied then the
chances of repeated purchases increase and as a result the retention if customers take place. If a
customer is asked to rate the satisfaction on a scale of 1-5 and if he scores his satisfaction point 5
then it is most likely that how will return to the same store to which he gave 5. Another major
indicator of a satisfied customer is that they make recommendations to others such as friends,
relatives and others and this shows that the customers is highly satisfied. This helps the company
in improving its sales. On the other hands, if a customer gives a rating of 1 on a scale of 1-5 then
his chances of repeat purchase with the same firm will be unlikely and furthermore they can have
a negative impact on the company by passing various negative comments about the company
products and services (Rahman et al., 2017).

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Figure 1: The purpose of Customer satisfaction
Source: (Lan et al., 2016)
From the above diagram the process of customer’s satisfaction and loyalty can easily be
understood. The company takes the feedback about its products and services from the customers
such that it can may the required changes to it and resell the same in the market with the features
as demanded by the customers and to track the progress of the process.
There have been various studies related to the same and wherein customer satisfaction is
understood and studied from various aspects. These aspects can be related to the normative to
positive aspects or even physical to psychological aspects (Fosouli, KhaniJazani & Hajikarimi,
2016). This concept of customer satisfaction is related to two main aspects such as the

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customer’s expectation about the product before consuming it and the perception of the product
after procuring it or consuming it. The performance of the product in front of the customers can
be seen through the customer’s satisfaction level. There are different types of customer’s
satisfaction as per the customer when he forms an opinion about the products and services.
According to Miller, there are four main types of customer’s expectation such as- the expected
expectation, the ideal expectation, minimum tolerable expectation of the customers and desirable
expectations. There are various other authors who have divided the expectations of the customers
on different basis. According to various authors, the concept of customer satisfaction is related to
various emotional elements that the customers relates to the products, services or even the firm.
In order to understand the concept of customer satisfaction, the model of Disconfirmation
is to be understood. According to the Disconfirmation model, there are two main factors on
which the customer’s satisfaction is dependant- the perceived performance scores of the product
or the services and the customers’ expectations of the product. The confirmation is achieved
when the product that the customer has bought has performed as per the customer’s expectation.
This is said to be positively confirmed. However, negative confirmation takes place relating to
the products and services of the customers when the product or the service does not perform as
per the customers expectation. According to the disconfirmation model, the disconfirmation is
positive when the products or services performance exceeds the expectation of the customers and
performs over that. There are four main paradigms of traditional nature related to customer
satisfaction. These are- performance, expectation, satisfaction and disconfirmation. When the
customer compares his expectation of the products with the actual results, he result can be
satisfaction if the performance exceeds the expectation of the customers. The satisfaction is

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related to the attitude since attitude is the summation of customer’s satisfaction with the firms’
products and services with the products features.
Figure 2: disconfirmation model of customers satisfaction
Source: (Kwon, Ha & Im, 2016 )
From the above diagram, the working of the disconfirmation model can be understood. There
two main factors detttmining the customers satisfaction these are- the perceived performance and
the expected performance which is represented as E and P. If P<E, there is a positive
disconfirmation and it leads to customer satisfaction. In other words if the expected performance
is greater than the perceived performance, the customer gets satisfaction. On the other hand, if
P>E then customer dissatisfaction takes place due to negative disconfirmation. In other words,
when the perceived performance is more than the expected performance it leads to customer
dissatisfaction (Kwon, Ha & Im, 2016). If P=E, then the disconfirmation will be neutral and the

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customers satisfaction will also be neutral that means he will nether be neither satisfied nor
dissatisfied.
Customer’s satisfaction level at Dominos New Zealand
There are different levels of customer satisfaction to achieve the customer’s loyalty.
These include- meeting the expectation of the customers, exceeding their expectations in order to
attain their satisfaction, delighting the customers and to amaze customers. For an organization to
be able to stay in the market requires meeting the minimum expectation of the customers.
However, if the company is at this level the customers expectation are being met by the
organization but they are not loyal to the company. For the organizations to create the customer
loyalty, they need to reach level 4 or the level where the company not only meets the basic needs
of the customers but exceeds the same and the company tries to delight the customers and to
amaze them. The company should try to delight the customers in order to occupy a competitive
position in the market. It is important to measure the customers satisfaction to check at which
level of satisfaction is the customer at. For this various surveys and interviews will be conducted.
Dominos which was started by two brothers is a franchisee business with its operation in
different countries across the globe. It occupies a major part of the food delivery and franchising
market sector (Dominos.co.nz., 2019). In order to understand the customers level of satisfaction
the company carries out regular feedback procedures and the customers can give suggestions
regarding the products of the company. The main products offered by the company include a
variety of products depending upon the different regions in which it operates. Since the
foundation of the company, the food menu was kept as simple as possible in order to ensure
efficiency in activities. Initially the company sold only one basic pizza with variation in its sizes.
In order to meet the customers requirement they have made many variations in its products such

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as apart from providing buffalo wings the company started providing spicy buffalo kickers and
various other dishes are introduced by the company in order to meet the customers’ expectations.
In order to delight the customers, dominos is offering various facilities such as- in the year 2016
Dominos delivered its first pizza through an unmanned vehicle aerially in New Zealand and used
the DRU drone for the same purpose. Similarly Dominos has created various e-gift cards for the
purpose of its wedding registry and the customers can also get pizza delivered for the event. In
order to protect its pizza from getting damaged inn transit, the company took up an initiative of
filling potholes. These activities of the company show that they are trying to get higher levels of
customer satisfaction through delighting the customers by offering them more than just pizzas.
New Zealand dominos has introduced a pineapple and thinned crust pizza with spaghetti flavors
for its customers who love spaghetti flavor. Recently, dominos new Zealand announced the news
of its new flavored pizza on Face Book. This post got many likes and many positive comments
from customers who actually feel that this combination tastes good. The online website offers the
customers a chance to either get the delivery of the pizza at their places or they may chose to
pick up their packages from the selected outlet near them. Dominos New Zealand have launched
an improved application for showing the various offers to the customers. In order to reach all the
customers in New Zealand, the company has many stores in operation. These areas include the
northern island and southern island. The areas covered under the northern island include-
Auckland, bay of plenty, Hawkes bay, northland, Taranaki, Waikato, Wanganui and others. In
the southern island Dominos provides delivery to Marlborough, Nelson, Southland, Otago,
Tasman, west coast and Canterbury. Through franchising the company tries to reach its
customers across different regions and in different countries. The logistics used in Dominos
includes direct channels for reaching its customers. The customers can place their order online or

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through calls and messages. In order to ensure that the delivery of the food happens in time, the
company started a thirty minute challenge of delivering the food to the customers within thirty
minutes or to deliver free if not delivered in that time limit. The price strategy of Dominos
includes a mix of both premium pricing and lower cost pricing strategy. A barbell strategy has
been introduced by the present CEO of the company in order to attract customers with different
income ranges. The company has recently introduced its sandwiches whose price is affordable to
set an example of the strategy of the new CEO. Through this strategy the company is trying to
attract new customers and retain the existing ones (Lan et al., 2016). The target market of the
company since foundation has been the lower middle class group of people. To provide the best
quality goods and services at reasonable prices has been the strategy of the company since its
foundation. The company keeps its prices in conformity to those kept by its competitor pizza hut.
The company regularly launches new techniques to keep the prices as affordable as possible. The
company’s strategy of delivering directly to the customers makes it successful and for this the
company carries out door-to-door services. One of the major promotional techniques applied by
the company is to deliver the food in thirty minutes. This has guaranteed the customers that they
can get their food within thirty minutes. In fact this strategy acts as a competitive advantage for
the company.

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Figure 3: logistics at Dominos
Source: (Dominos.co.nz., 2019)

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References
Agnihotri, R., Dingus, R., Hu, M. Y., & Krush, M. T. (2016). Social media: Influencing
customer satisfaction in B2B sales. Industrial Marketing Management, 53, 172-180.
Dominos.co.nz. (2019). About Domino's Pizza. Discover the story behind the brand | New
Zealand. Retrieved from https://www.dominos.co.nz/about-us
Fosouli, M., KhaniJazani, J., & Hajikarimi, A. (2016). Explanation of the importance of
innovation and government support on profit of Food industry companies listed on the
Tehran Stock Exchange. International Journal of Humanities and Cultural Studies
(IJHCS) ISSN 2356-5926, 1(1), 789-803.
Hill, N., & Brierley, J. (2017). How to measure customer satisfaction. Routledge.
Kwon, H., Ha, S., & Im, H. (2016). The impact of perceived similarity to other customers on
shopping mall satisfaction. Journal of Retailing and Consumer Services, 28, 304-309.
Lan, S., Zhang, H., Zhong, R. Y., & Huang, G. Q. (2016). A customer satisfaction evaluation
model for logistics services using fuzzy analytic hierarchy process. Industrial
Management & Data Systems, 116(5), 1024-1042.
Rahman, T. A. A. F., Othaman, M. R., Akkas, N. N., Sa’ari, I. N. B., & Ting, Z. (2017).
CONSUMER PRODUCT INDUSTRIES’RISK AND PERFORMANCE
ASSESSMENT. International Journal, 1(1), 28-41.
Rangkuti, F. (2018). Measuring Customer Satisfaction Teknik Mengukur Strat. Meningk. Kep.
Plg. Gramedia Pustaka Utama.