Customer Satisfaction and Service Quality in Retail Sector, Copenhagen

This dissertation examines customer satisfaction and service quality within the retail sector in Copenhagen, specifically comparing Netto and Fakta. The study begins with an introduction, background, and rationale, outlining the aim to analyze customer satisfaction and service quality through a comparative lens. It establishes objectives, research questions, and the dissertation's structure, including chapters on methodology, data analysis, and conclusions. The research employs a mixed-methods approach, incorporating both positivism and interpretivism, with data collection through questionnaires and secondary sources. The methodology details research philosophy, approach, design, and strategy. The dissertation then presents empirical data, thematic analysis, and findings, followed by an analysis chapter that integrates literature review and gathered data. The final chapter offers conclusions and recommendations for improving customer satisfaction and service quality for both Netto and Fakta. The research aims to provide insights into business strategies, customer preferences, and the skills required for effective retail operations. Appendices include the questionnaires used for data collection.

Dissertation

Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Title........................................................................................................................................1
1.2 Introduction............................................................................................................................1
1.3 Background............................................................................................................................1
1.4 Rational..................................................................................................................................2
1.5 Aim and Objectives...............................................................................................................2
1.6 Research Questions................................................................................................................3
1.7 Focus and Purpose.................................................................................................................3
1.8 Dissertation structure.............................................................................................................3
1.9 Framework and analysis........................................................................................................4
1.10 Significance of the research.................................................................................................6
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................7
3.1 Introduction............................................................................................................................7
3.2 Research philosophy..............................................................................................................7
3.3 Research approach.................................................................................................................8
3.4 Research design.....................................................................................................................8
3.5 Research strategy...................................................................................................................9
3.6 Data collection methods........................................................................................................9
3.7 Sampling..............................................................................................................................10
3.8 Data analysis........................................................................................................................10
3.9 Ethical considerations..........................................................................................................11
3.10 Research limitations...........................................................................................................12
3.11 Conclusion.........................................................................................................................12
Chapter 4: Empirical data and research findings...........................................................................14
4.1 Introduction..........................................................................................................................14
4.2 Thematic analysis................................................................................................................14
CHAPTER 5: Analysis..................................................................................................................28
5.1 Analysis...............................................................................................................................28
CHAPTER 6: CONCLUSION AND RECOMMENDATION.....................................................30
6.1 Conclusion...........................................................................................................................30

6.2 Recommendation.................................................................................................................31
REFERENCES..............................................................................................................................33
APPENDIX 1.................................................................................................................................38
QUESTIONNAIRE...................................................................................................................38
APPENDIX 2.................................................................................................................................40
QUESTIONNAIRE...................................................................................................................40

CHAPTER 1: INTRODUCTION
1.1 Title
“Customer Satisfaction and Service Quality in retail sector in Copenhagen: A comparative study
on Netto and Fakta.”
1.2 Introduction
Companies around the world focus on gaining maximum profit. This is attained by the
business when they are able to understand the requirement of customers (Udo, Bagchi and Kirs,
2010). With this respect, there are certain set of expectations that individuals have before any
type of purchases. In order to make purchases, there are factors that motivate them. In this
context, it includes price, quality, quantity, etc. When all the requirements of the service users
are taken into consideration, then it makes that business to achieve their goals and objectives.
Within a business, there are different departments that work together to make sure that objectives
made by them can be achieved. In all these aspects, it is highly important to have support from
that side of employees. They are the face of organization as they have direct interaction with
customers (Ryu and Han, 2010). It is required by them to have understanding towards the roles
and responsibilities that have to be played by them. In conditions when they do not have
appropriate knowledge, then it affects the business and level of satisfaction gets negatively
affected. Apart from this, service quality and satisfaction of customers have close relationship
with each other. When level of quality for the services increases, then satisfaction level of
customers also increases simultaneously (Angelova and Zekiri, 2011). Main focus of the current
research is carried out on analysing the customer’s satisfaction and service quality in retail sector
in Copenhagen. To conduct the research in an effective manner, there are two of the companies
that are taken into consideration. Netto Marken-Discount in a German supermarket chain which
was founded in the year 1928. Further, Fakta is a Danish supermarket that was founded in 1981.
Both these firms are supermarkets and aim at delivering their customers with high quality
services.
1.3 Background
At the early stages, business was done in order to satisfy the basic aspect of living and it
was not to gain profit but to satisfy the basic requirements. In this modern world, there are many
changes that have taken place in relation with the focus of the business (Naik, Gantasala and
Prabhakar, 2010). Organizations aim at understanding the requirements and implementing
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strategies so that strong relationship can be maintained. There are many companies that have
come up and deliver similar type of products and services. This way, customers have wider
options to selecting the goods and so, they make use of strategies that can enable to attain
competitive advantage. For example, employees are monitored so that management is able to
determine the areas in which improvement is required to be made (Siddiqi, 2011). This way, the
areas that is required to be improved is needed to be considered and proper training is provided
so that workers are able to develop their skills and work with their full efficiency.
1.4 Rational
The rate of competition is high and due to this issue, management fail to provide
customers with attain their goals. With this respect, to gain profit, companies do not provide high
quality services and thus affects the satisfaction level of customers. In order to make individuals
satisfied, it is important for the business to understand the requirement and appropriate steps are
taken to satisfy them (Munusamy, Chelliah and Mun, 2010). Growth of business depends on the
meeting up needs of customers and making them develop positive perception within the mind of
service users. There are many issues that are faced by companies due to which they fail to meet
up requirements of customers. However, these are done effectively when issues lack of
employees support, low finance, in effective materials, etc. At initial stage when there are
problems faced by organizations like Netto and Fakta, they lose customers and people shift on to
other companies that are able to meet the needs. For example, when Netto is able to provide
satsifation to customers by provide them with high quality with low price, then there are situation
in which service users of Fakta can shift to other Netto.
1.5 Aim and Objectives
Aim: “To analyse Customers Satisfaction and Service Quality in retail sector in Copenhagen: A
comparative study on Netto and Fakta”.
Objectives:
 To understand the concept of Service Quality and Customers Satisfaction.
 To determine the relationship between customers satisfaction and service quality.
 To compare level of satisfaction and service quality delivered by Netto and Fakta at
Copenhagen.
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 To recommend way to improve customers satisfaction and service quality of Netto and
Fakta at Copenhagen.
1.6 Research Questions
 What is the concept of Service Quality and Customers Satisfaction?
 What are the relationship between customer’s satisfaction and service quality?
 Which one is able to provide customer satisfaction and service quality delivered by Netto
and Fakta at Copenhagen?
1.7 Focus and Purpose
In accordance with the objectives set, the researcher is willing to make analysis of the
business strategies that are applied by both the companies, when this is done, then it provides
information regarding which one is highly effective. Further, there are ways like conducting
market research, etc. that are helpful to determine the preferences of service users. Main focus is
made to identify the analysis for service quality and customers satisfaction (Kassim and Asiah
Abdullah, 2010). In addition to this, there are considerations made to determine the skills that are
required by a person so that they can understand the requirements and in making the business
research their desired goals. In accordance with the purpose, the researcher will make analysis of
the findings from all the companies and then the best one can be identified with their strategies
that are applied by them to raise satisfaction level of workers.
1.8 Dissertation structure
In accordance with the current dissertation, there are different chapters that are included
so that viewers are able to understand the research and get benefited. In this context, below given
are the chapters that are included in the dissertation:
Chapter 1- Introduction: This is the chapter in which proper information about the topic
that are to be covered are discussed. Viewers are able to understand the main research topic that
is covered and the areas rations for which the research is conducted. Further, it also provides
information about the objectives that are covered so that in systematic manner the research is
conducted. Further, it also covers the chapters that will be covered in the dissertation.
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Chapter 2- Literature Review: This is an important chapter as it helps in delivering
adequate information about the researches that are already gathered by some other investigators.
There are many similar researches conducted on similar topic and these are helpful enough to
provide in depth understanding about the research topic. Each of the objectives included are
covered and these provide proper understanding towards the research areas.
Chapter 3- Research Methodology: In this chapter research methods, techniques, etc. are
taken into consideration. These are used so that all the information that are gathered can be
presented and appropriate outcome can be determined. More specifically, it includes gathering of
data and then once it is done, then it is required to make analysis so that appropriate outcome can
be determined from the research topic.
Chapter 4- Empirical data and research findings: This is the part that helps to make
interpretation of the findings that are made. When this are done, then it becomes helpful enough
make the findings present in systematic and understandable manner. The Information is gathered
from customers and all the data identified is required to be presented in such a way that views
understand them.
Chapter 5- Analysis: This is the part that enables to focus on the overall the findings and
interpretations that can be done by comparing the literature and data gathered through
questionnaire. This way, it becomes helpful enough to relate with the researches that are already
being gathered on similar topic.
Chapter 6- Conclusion: In accordance with this chapter overall conclusion is done in
which the findings are concluded. Further, it also includes information to be presented with the
help of which companies chosen can get benefited from the recommendations so that rate of
customer’s satisfaction and quality services can be improved.
1.9 Framework and analysis
Investigator will make use of suitable methods through which effective methods and
techniques are identified. With this respect, all these that will be covered are as follows:
Research philosophy: There are two main types of research philosophies which are
interpretivism and positivism. Among these two the research will make use of both positivism
and interpretivism. It is important for the business to make sure that proper focus is made on the
objectives that are set by the researcher. In addition to this, the investigator is also able to set out
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a systematic place with the help of which the all the objectives are covered effectively and
efficiently.
Research approach: There various ways that make people to select the most effective to
present the information. In this context, research approach are of two types which are inductive
and deductive. Among these two the researcher will make use of inductive approach as it enables
to present the information gathered from specific to general aspect. Specific information in
relation with the topic is gathered and then general aspects are then covered.
Research design: This is considered to be the blue print that help to provide step by step
information through which the data can be presented. These are of three types which are
descriptive, exploratory and experimental. The research will make use of descriptive research as
this is a type of research design that is helpful enough to relate with the theories and models
through which in depth understanding can be raised.
Research strategy: There are two different type of research strategy which are qualitative
and quantitative. Among these two, the researcher will make use of combined strategies. By
making use of number of strategic planning tools, investigator will make use of qualitative
research. On the other hand, use of quantitative method will be done for determining strategies to
improve the satisfaction level of customers and in raising service quality.
Data collection methods: There are various methods that are available to make sure that
appropriate information can be gathered. With this respect, it includes primary and secondary
methods. Among these both these will be used. Primary with the help of questionnaire and
secondary by making use of sources like social media, online websites, books, journals, etc. All
these helps are highly effective enough to attain the desired goals in effective manner.
Sampling: It is important that proper selection of sampling methods are done so that
information related with the research project can be gathered. These are of two type which are
probabilistic and non probabilistic. The researcher will make use of non probabilistic sample in
which selection of respondents will be done as per the preferences of investigator. Further,
customers will be selected as sample size, individuals who have made use of the services that are
delivered by cited firms.
Data analysis: When information is gathered, then it is required to make analysis of the
data so that so that it can be presented in understandable form. These are of two types which are
qualitative and quantitative method. Among these, the research will make use of qualitative
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method in which thematic will be used as it enables to present the finding in the form of tables,
charts, graphs, etc.
1.10 Significance of the research
The research conducted will be highly effective enough to make sure to analyse the steps
that are to be considered with the help of which management is able to attract customers. With
this respect, the research will enable to determine the steps that can be considered through which
the rate of satisfaction level customers are raised (Ryu, Lee and Gon Kim, 2012). Further, it will
also provide information in relation with the firm that are highly effective and are able to attain
their desired goals and objectives. Apart from this, the preferences of customers will also be
considered in which the way that through which they get motivated and encouraged to make
purchases decision making are analysed. Further the factors that are make the workers face
problems in taking up decision for making purchase will also be covered through this
dissertation.
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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
Research methodology can be determined as the technique, method and application that
are helpful enough to establish so that the research carry out in efficient manner (Neuman, 2013).
With this respect, all the methods can provide information related with the most effective firm
that is able to satisfy customer’s requirements. Research methodologies include methods,
strategies, techniques, etc. that enable to present the finding in appropriate manner. When all the
steps are included in the research is used, then the ways for gathering information and steps to
make analysis is done in effective manner. In this context, below given are the research
methodologies that are included.
3.2 Research philosophy
Philosophy can be determined as the paradigm that enables strong base with the help of
which the investigation is carried out either on the basis of subjective or objectives. It is always
suggested to make use of objectives so that the areas that enable research to be conducted are
analysed and evaluated (Taylor, Bogdan and DeVault, 2015). Further, the research philosophy is
the first that falls under Saunder’s onion and comes under outer most layer. These are of four
types which are positivism, interpretivism, realism and pragmatism. All these types have their
own set of benefits and disadvantages. In accordance the present research, the investigator has
made use of both interpretivism and positivism. Main reason for which this is selected is that it is
helpful enough to gather factual information and this is identified by making use of observation.
Further, these two type of researches enables to limit the findings that are made by investigator.
In other words, it enables to limit the role researchers in analysing and interpreting. Main focus
of the research is carried out in determining the strategies that are applied by companies to attain
their set goals and objectives for raising customer satisfaction. Positivism is dependent on
observations that are quantifiable. Apart from this, it also assists the investigator to facts
regarding the study. On the other hand, interpretivism enables to assists in interpreting the
elements of the study (Lewis, 2015). As per the research, there are elements that are included
which are related with satisfaction of customers, improving the services quality, etc. All these
conditions enable the researcher to make sure that the research is conducted in effective and
efficient manner.
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3.3 Research approach
There is different way through which the information gathered is presented. With this
respect, the investigator can present the information in the form from specific to general and
general to specific. In this context, research approaches are of two types which are inductive and
deductive (Brinkmann, 2014). Inductive approach is considered to be the approach that is carried
out from specific information to general. On the other hand, deductive is the one in which the
information is presented from general to specific. Research approach encompasses the plan for
the procedures that are to be undertaken for carrying out the study. Further, deductive focuses on
the hypothesis testing that are listed. Apart from this, it also enables to make sure that hypothesis
test is determined based on the assumption that are got deep insight of literature review.
Inductive approach enables to focus on the theories and models that are initial stage and then
interpretations are made for the research in general way.
Among these two approaches, the investigator has made use of inductive approach in
which specific observation is made that enables to detect regularities and patterns. The findings
that are made are so specific that it makes the researcher to consider the applications and make
them implement in appropriate manner. Further, it also aims at testing theories and in generation
of new theories that are emergent for the data (Silverman, 2016). With the help of theories and
observations these are proposed towards the bottom for the process of the research and this is
occurred due to observation made. Thus, it can be stated that with the help of inductive approach
the researcher has got benefited in considering the theories and models and covering them with
the general aspects that are included for the research topic.
3.4 Research design
With the help of research design, it is helpful enough to gather information that is used by
the investigator for coherent and logical integration for the various type of components of the
study. In other words, it is also considered to be the blue print of the research. The investigator is
able to focus on the steps by steps process through which all the aspect for effective dissertation
is covered (Flick, 2015). Apart from this, this is an effective method that enables to develop a
plan for the investigation. Further, it selects effective design for the research as per the numerical
and subjective concept. The research designs are of three types which are explanatory,
exploratory and descriptive. Among these, the researcher has made use of descriptive design.
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This is selected because it enables to focus on survey methodology and study analysis. Apart
from this, it also helps in determining the concept of customer satisfaction and service quality. In
addition to this, it plays vital role in gathering facts and figures through appropriate analysis
techniques. Descriptive design is further divided in to three different types which are case study,
observation and case study. These help to adopt most effective method through which study of
determining the firm that provide proper quality services and satisfaction to service users
(Panneerselvam, 2014). When these analysis is made use then the researcher is able to identify
the areas in which information can be gathered and this way the data that is gathered will help to
consider areas in which findings is required to be made.
3.5 Research strategy
There are two different form of strategies that can be used by the investigator to present
the information. With this respect, it includes quantitative and qualitative strategies. Both have
their own set of benefited and disadvantages. In this context, quantitative research strategy
enables to determining various type of theories that are included and those which are related with
the research topic (Smith, 2015). On the other hand, qualitative research strategy is focus on the
theoretical aspects that are helpful enough to carry out the research in effective manner. There
are different types of models and theories that are taken into considered and all these help in
developing in depth understanding. Among these two, the research has made use of qualitative
method. This way, all the information that is provided from the side of workers is taken into
consideration. Further, there are researches conducted on similar topic and considering them is
highly effective to develop in depth understanding.
3.6 Data collection methods
To attain all the aim and objectives in appropriate manner, there are different sources that
are used by investigator to make sure that adequate information is gathered. With this respect,
there are two methods that can be used which are primary and secondary. Primary are considered
to be the information that are gathered for the first time (Cammarota and Fine, 2010). On the
other hand, secondary are those which are already gathered by some other researchers. For
primary method, there are tools like interview, questionnaire, focus groups and observation
included. Interview is a type of method in which questions are develop as per the research topic
and respondents have to answer them. Further, questionnaires are those in which various
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questions are asked in which options need to be selected by respondents. Further, focus groups
are those in which selection of most appropriate uses of groups are selected who will be able to
answer for the research topic. In addition to this, observation is a method in which the
investigator is required to observe. On the other hand, secondary data make use of tools like
books , articles, online sources, etc. Among these, the researcher has made use of both secondary
and primary methods. Both have their own set of benefits and disadvantages. More specifically,
the researcher has used questionnaire in collecting primary and for secondary use of online
websites, books, journals, etc. are done (Choy, 2014). In secondary data, there are conditions in
which information is accessed only when account is made and consideration is also made in
which journals selected are new so that reliable data gathered .
3.7 Sampling
When information is gathered, then for primary information, it is required to select the
sample and size so that reliable data can be gathered. With this respect, there are two methods for
sampling which are probabilistic and non probabilistic samplings. Probabilistic sampling is those
in which all the respondent from whole population has the chances of being selected (Neuman,
2013). This is also known as random sampling . The researcher would select randomly from the
large population level. On the other hand, non probabilistic sample are those in which selection
of samples are done on basis of preferences of researcher. Investigator has proper idea or
understanding of the selection of the samples that has to be made. This is done so that most
specific peace of data can be gathered in effective manner (Taylor, Bogdan and DeVault, 2015).
In accordance with the current research, the total size that is selected is 40 and the groups from
which information gathered is customers who have made use of the services of both Netto and
Fakta. More specifically, 20 will be given with the questionnaire that is focused on determining
the satisfaction level of Netto and other remaining 20 customers for Fakta. These are selected as
respondents as they can provide adequate information in relation with the research topic.
3.8 Data analysis
When information is gathered, then it is required to make appropriate interpretation of the
findings that are made. Further, data analysis consists of transforming, cleaning and coding of
data with the help of which conclusion can be drawn (Lewis, 2015). In order to do so, there are
two different methods that can be implemented through which information gathered are analysed
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in appropriate manner. There are two methods that can be used which are qualitative and
quantitative methods. Qualitative is considered to be the method that enables to make better
interpretation of the situations and individuals. Apart from this also make effective support to
make detailed insight regarding particular phenomenon. There are different types of responses
that are made by individuals or respondents and when these are done in accordance with the
findings, then it becomes favourable enough to make researcher in attaining the desired goals
and objectives. Thematic is considered to be the tool that enables to make sure that all the
response that were made by the respondents are presented in the form of tables, charts, graphs,
etc. This way, viewers are able to consider the option that is chosen more clearly and specifically
for the areas in which preferences of respondents lies (Brinkmann, 2014). On the other hand,
quantitative method is a type of method that enables to determining the findings by making use
of statistical tools regression, t-test, etc. Among these two, the researcher made use of qualitative
method in which thematic is used. This is selected as the method for data analysis as it enables to
focus on the responses that are provided by each of the customers and identifying the perception
that is carried out by them.
3.9 Ethical considerations
In order to conducted the research effective manner. There are certain set of ethical
consideration that are required to be analysed. When these are focused on, then it enables to
make the researcher to present the gathered information in appropriate manner (Silverman,
2016). With this respect, all the respondents are selected are needed to be conveyed regarding the
main reason for which the information is gathered. When individuals know the benefited that
they will be get through providing the information, then they will put on their full efforts to fill
up the questionnaire. There are questions designed which when filled by respondents can enable
to make comparison among the services quality and satisfaction level of customers. However,
questionnaire should be properly designed so that the determined goals and objectives can be
attained. Apart from this, there are personal information provided and it is the responsibility to
make sure that all the information provided are not misused. For this purpose, all the personal
information is gathered by making use of system so that it is properly protected (Flick, 2015).
Only the person who is authorised is responsible to get access for the personal information and
after certain period of time data will be destroyed and will be used only for the purpose of
research. Further, there is secondary information that is also taken into considered. It is important
11

to make sure that data is used as it is because it increases the risk of plagiarism. Further, citations
should be done so that viewers are able to relay on the information that is presented.
3.10 Research limitations
There are different types of limitations that are caused due to which researcher face issues
or problems. In this context, below given are few of the areas due to which researchers face
limitations towards their project:
Aim and objectives: To make the research to be carried out in effective manner, there are
considerations that are needed to be made in which the aim and objectives are properly
developed (Panneerselvam, 2014). When these are not done, then it becomes a type of limitation.
Cost: There are certain set of cost that are included for each of the activities. It requires to
appropriate plan to be made so that tasks that are developed can be completed with the
speculated cost that are determined. When the plan made is not appropriate, then it becomes
difficult to complete the project within maintaining the quality.
Time: Different types of activities are included in the project and to complete them, it is
requires to set out each total time that will be taken to complete the project. In conditions when
any of the activities get delayed, then all the following tasks also get negatively affected. This
way, it can be stated that proper steps are required to be taken so that within speculated time
period all activities get completed.
Research methodologies: To conduct the research in appropriate manner, there are
required to have proper use of strategies, methods, etc. to be done so that the researcher can
make the gathered information into understandable form (Smith, 2015). It becomes research
limitation when selections of research methodologies are not done properly.
3.11 Conclusion
In accordance with the chapter conducted, it can be stated that this part is important for
the researcher to consider. Further, it is identified that use of both primary and secondary
methods are done so that appropriate information can be gathered in carrying out the research in
appropriate manner. Moreover, selection of respondents should be done carefully so that selected
individuals are able to provide all information with the help of which research aim and objectives
can be attained. This way, customers are selected who have made use of the services that are
delivered by both the retain companies.
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Chapter 4: Empirical data and research findings
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19

APPENDIX 1
QUESTIONNAIRE
1. What are the factors that make you take purchase decision?
 High Quality
 Low price
 Quantity
 Discount offers
2. Do you think employees play important role in raising customer’s satisfaction level?
 Yes
 No
 Not sure
4. Are you satisfied with the services and products that are delivered by Netto?
 Yes
 No
 Not sure
5. What according to you enable to improve service quality at Netto?
 Skilled employees
 Frequent innovation
 Using new or updated technology
 Developing customers relationship
6. Are you able to get updates regarding the offers that are made by Netto?
 Yes
 No
 Not sure
7. What are factors due to which you get dissatisfied with the services that are provided Netto?
 Waiting time for payment of bills
 Difficulties in finding products
 Low quality products
 High pricing
8. Overall, are you satisfied with the services that are provided by Netto?
 Yes
20

 No
 Not sure
21

APPENDIX 2
QUESTIONNAIRE
1. What are the factors that make you take purchase decision?
 High Quality
 Low price
 Quantity
 Discount offers
2. Do you think employees play important role in raising customer’s satisfaction level?
 Yes
 No
 Not sure
4. Are you satisfied with the services and products that are delivered by Fakta?
 Yes
 No
 Not sure
5. What according to you enable to improve service quality at Fakta?
 Skilled employees
 Frequent innovation
 Using new or updated technology
 Developing customers relationship
6. Are you able to get updates regarding the offers that are made by Fakta?
 Yes
 No
 Not sure
7. What are factors due to which you get dissatisfied with the services that are provided Fakta?
 Waiting time for payment of bills
 Difficulties in finding products
 Low quality products
 High pricing
8. Overall, are you satisfied with the services that are provided by Fakta?
 Yes
22

 No
 Not sure
23

24