Factors Influencing Customer Satisfaction: Meridian Foods Research

This research proposal focuses on identifying the factors influencing customer satisfaction at Meridian Food Manufacturing, aiming to increase sales. The study investigates the impact of customer service and price fairness on customer satisfaction, recognizing the importance of these factors for b...Read More

Research Proposal Individual Report
FACTORS INFLUENCING
CUSTOMER SATISFCATION WHICH
INCREASES SALES AT BINGO
Research Proposal
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Research Proposal Individual Report
Acknowledgement
This project would never have been possible without the support and guidance of various people
at the International College of Business and Technology. Firstly, I would like to thank my
lecturer for giving me the wonderful opportunity to complete my research proposal under their
supervision, it is truly an honor. Thank you for all the advice, ideas, moral support and patience
in guiding me through this project. Thank you for your enthusiasm for the study and for giving
me the opportunity to grow in this field of research.
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Research Proposal Individual Report
Table of Contents
Acknowledgement.......................................................................................................................2
1.0 Introduction...........................................................................................................................4
1.1 Background of the Study.......................................................................................................4
1.2 Problem Statement.................................................................................................................5
1.3 Research Objectives...............................................................................................................6
1.4 Research Question.................................................................................................................6
1.5 Significance of the Study.......................................................................................................6
1.6 Limitations of the Study........................................................................................................7
2.0 Literature Review......................................................................................................................7
2.1. Customer Satisfaction...........................................................................................................7
2.2. Customer Services................................................................................................................8
2.3. Price Fairness........................................................................................................................9
3.0 Methodology............................................................................................................................12
3.1 Introduction..........................................................................................................................12
3.2 Research Design..................................................................................................................12
3.3 Conceptual Framework........................................................................................................13
3.3 Population............................................................................................................................13
3.4 Sample Size.........................................................................................................................13
3.5 Sampling Method.................................................................................................................13
3.6 Data Collection....................................................................................................................14
3.7 Data analysis........................................................................................................................14
References......................................................................................................................................15
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Research Proposal Individual Report
1.0 Introduction
1.1 Background of the Study
In the contemporary environment the only constant is change. Therefore, businesses have to
develop different strategies in order to survive in long run. One of the best strategies is about
satisfying the customers that ensure a long term growth of business. Nowadays organizations are
well aware of the benefits that lie with retaining customers and strive to know the reasons in
black box of customer that have impact on the brand choice to reduce the turnover rate. Since
having satisfied customer is the core concern of any organization, they pay close attention
toward the factors that influence a customer’s decision towards brand. The main purpose of this
research study was to investigate the key variables that are having strong influence on customer
satisfaction in telecom sector and influence purchasing decision of customers.
This study has considered the two main important factors as pricing and customer’s services to
know its effects on customer satisfaction. Factors affecting customer satisfaction are key concern
for any organization, department or country because through customer satisfaction any business
can establish long term profitable relationship with customer. The reason behind is once a firm
loses its loyal customers it has to incur a cost of acquiring them again in addition to acquiring the
new ones.
The Food Manufacturing Companies in Sri Lanka are truly making potential remarks regarding
business aspects within the country. All these Food manufacturing Companies in Sri Lanka surly
withholds a major sector of country’s economy. During past few years the growth rate and
business stability of such companies established and incorporated in Sri Lanka has truly made
some remarkable statics to look in. All these lucrative statistics mainly related to profit potentials
usually drives in the interest of many other business owners and foreign investors to seek in
opportunities to start off their own Food staff business in Sri Lanka. The Food & Beverage
Business in Sri Lanka along with the Food manufacturing companies in Sri Lanka is considered
to be one of the most vital and important sectors due to their potentials and capabilities to deliver
the country and its government certain benefits related to the economy in terms of foreign
exchange earnings, source of employment, introducing innovation in the food system of the
country, rural economy growth and certainly improvising the local economy scale. Usually the
business owners and fellow investors considered as the main face of all these food manufacturing
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Research Proposal Individual Report
companies in Sri Lanka can be categorized as large, medium and small-scale exports. It is
usually not possible, risky and is way difficult for anyone to open up their own food stuff
company in Sri Lanka or in any other nation around the world.
Hence being a legal and licensed importer is going to be the best profitable way to seek in the
food and beverage business in Sri Lanka. Well, undoubtedly Sri Lankans love to eat good
healthy food and explore new taste. Sadly, the country lacks in great extent to the availability of
various foods, beverage and various masalas within the country. Hence, foodstuff such as canned
products, package goodies and other delightful food/snacks and beverages are mostly imported
commodities all over Sri Lanka. Thus, making all these food manufacturing companies in Sri
Lanka as one of the peak business opportunities in Sri Lanka. One can easily import their desired
goods and beverage from neighboring countries or parent country and sell them directly to the
local markets in Sri Lanka. This sort of business policies is quite easy to initiate, as it usually
does not require a huge capital and moreover the business owners and foreign investors usually
does not need to go through hazardous incorporation policies, permits and licensing issues.
1.2 Problem Statement
Considering the study it has been conducted to the Meridian Food Manufacturing company in
which the company has recently seen a decrease in their sales.
Toffee Biscuits Soya Tip Tip Jelly
0
2
4
6
8
10
12
14
16
18
Sales
2017 2018 2019
Figure 1: Sales at Meridian Food Manufacturing
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Research Proposal Individual Report
The figure shows the sales at the company in the year 2017, 2018 and 2019. Considering all
three years sales of toffee, biscuits, soya and tip tip has increased where it shows the company
has gained more revenue through that and the sales in the jelly has decreased a lot. Therefore the
company has planned to find what are the factors that are influencing the customer satisfaction
which will help the organization to identify that and increase sales.
1.3 Research Objectives
 To identify the factors influencing customer satisfaction at Meridian Food Manufacturing
company.
 To provide proper solutions through conclusions.
1.4 Research Question
 What are the factors influencing customer satisfaction at Meridian Food Manufacturing
company?
1.5 Significance of the Study
The reason for choosing this theme is it's a main issue in each industry as of now and since
representatives are one of the principle drivers which contribute towards authoritative
achievement, this issue ought to be appropriately looked into. It is also important for the
company to identify these factors to improve the sales in jelly.
1.6 Limitations of the Study
 Accuracy of the information gained
 Time constraint
 Lack of cooperation and response from respondents
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Research Proposal Individual Report
2.0 Literature Review
2.1. Customer Satisfaction
Customer satisfaction is defined as an "evaluation of the perceived discrepancy between prior
expectations and the actual performance of the product" (Tse and Wilton, 1988, Oliver 1999).
Satisfaction of customers with products and services of a company is considered as most
important factor leading toward competitiveness and success (Hennig-Thurau and Klee, 1997).
Customer satisfaction is actually how customer evaluates the ongoing performance (Gustafsson,
Johnson and Roos, 2005). According to Kim, Park and Jeong (2004) customer satisfaction is
customer’s reaction to the state of satisfaction, and customer’s judgment of satisfaction level.
Customer satisfaction is very important in today’s business world as according to Deng et al.,
(2009) the ability of a service provider to create high degree of satisfaction is crucial for product
differentiation and developing strong relationship with customers. Customer satisfaction makes
the customers loyal to one telecommunication service provider. Previous researchers have found
that satisfaction of the customers can help the brands to build long and profitable relationships
with their customers (Eshghi, Haughton and Topi, 2007).
Though it is costly to generate satisfied and loyal customers but that would prove profitable in a
long run for a firm (Anderson, Fornell and Mazvancheryl, 2004). Therefore a firm should
concentrate on the improvement of service quality and charge appropriate fair price in order to
satisfy their customers which would ultimately help the firm to retain its customers (Gustafsson,
Johnson and Roos, 2005). It is a common phenomenon that the services a brand offers and the
price it charges actually determine the level of satisfaction among its customers, than any other
measure (Turel et al. 2006). Customer’s involvement is also important as when buyer consider
the product important and invests time to seek information then it ultimately enhances the
satisfaction level (Russell-Bennett, McCollKennedy and Coote, 2007). This satisfaction may
influence the concerned company by repurchase, purchase of more products, positive word of
mouth and willingness of customer to pay more for the particular brand. Any business is likely to
lose market share, customers and investors if it fails to satisfy customers as effectively and
efficiently as its competitors is doing (Anderson, Fornell, and Mazvancheryl, 2004).
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2.2. Customer Services
Customer service is a system of activities that comprises customer support systems, complaint
processing, speed of complaint processing, ease of reporting complaint and friendliness when
reporting complaint (Kim, Park and Jeong, 2004). Customer services are the opportunities for
telecom service providers that are added to mobile network other than voice services in which
contents are either self-produced by service provider or provided through strategic compliance
with service provider (Kuo, Wu and Deng, 2009).
The improved customer services are the focal point of the telecom service providers for social as
well as for economic reasons. From a social point of view, services should be available to the
customers on reasonable terms. As far as economic factor is concerned, services should satisfy
the needs of the customers (Turel and Serenko, 2006; Melody, 1997). For developing satisfaction
among customers, the telecom service providers need to be extra careful for the customer
services they provide. Satisfaction of customer is determined by his evaluation of service
provided by a brand (Gustafsson, Johnson and Roos, 2005). The study of Ahn, Han and Lee
(2006) shows that when the customers, do not get their complaints considered properly, they start
looking for other brands. It happens because either the customer service centers do not handle the
complaints or the customers are not able to address them properly.
Sometimes, telecom service providers take considerably longer time to resolve the problems like
network coverage or call quality, the customers do not wait for long and hence they lose
satisfaction with that particular brand (Ahn, Han and Lee, 2006). Furthermore, the friendly
attitude and courteous behavior of the service workers at service firms leaves a positive
impression on the customer which lead towards customer satisfaction (Soderlund and Rosengren,
2008). On the other hand, if a telecom service provider lacks in providing services (call drops) to
its customers it experiences customer churn. Kim, Park and Jeong (2004) argued that service
provider should provide customer oriented services in order to heighten up customer satisfaction.
It was also found that the customers get satisfied to a brand more if they get all the needed
services accumulated in that very brand (Ahn, Han and Lee, 2006).
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Research Proposal Individual Report
2.3. Price Fairness
According to Kotler and Armstrong (2010) price is the amount of money charged for a product
or service, or the sum of the values that customers exchange for the benefits of having or using
the product or service while Stanton, Michael and Bruce (1994) defined price as the amount of
money or goods needed to acquire some combination of another goods and its companying
services. But the marketing literature showed researchers’ inclination towards price fairness in
relation with customer satisfaction (Hermann et al., 2007; Kukar-Kinney, Xia and Monroe, 2007;
Martin-Consuegra, Molina and Esteban, 2007). Price fairness refers to consumers’ assessments
of whether a seller’s price is reasonable, acceptable or justifiable (Xia et al., 2004; Kukar-
Kinney, Xia and Monroe, 2007). Price fairness is a very important issue that leads toward
satisfaction. Charging fair price helps to develop customer satisfaction and loyalty.
Research has shown that customer’s decision to accept particular price has a direct bearing at
satisfaction level and loyalty and indirectly (Martin-Consuegra, Molina and Esteban, 2007). In
another study of Herrmann et al., (2007), it was concluded that customer satisfaction is directly
influenced by price perceptions while indirectly through the perception of price fairness. The
price fairness itself and the way it is fixed and offered have a great impact on satisfaction.
According to Lommeruda and Sørgard (2003), telecommunication services are like
undifferentiated products therefore, customers are not price sensitive all the times and sometimes
brand loyalty takes part in brand preferences. This is the reason; some consumers are retained
with old monopolists. Literature explored showed substantive role of price fairness and quality
service with customer satisfaction, therefore, this study also comprised these two factors and
their effects at customer satisfaction in the telecom sector of Pakistan were evaluated.
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Research Proposal Individual Report
Bloemer et al., (1998) they had worked on investigating drivers of bank loyalty: the complex
relationship between image, service quality and satisfaction. This article unfolds First of all a
brief outline of the construct of loyalty. Next, differentiate conceptually between service quality
and satisfaction as determinants of customer loyalty. Subsequently, introduce the construct of
image and focus on the relationship between image, satisfaction, service quality and loyalty by
formulating a set of formal hypotheses. After dealing with the conceptual issues, the results of an
empirical study that was undertaken to test our research hypotheses for the setting of retail
banking. In conclusion, they address the theoretical as well as the managerial implications of
findings on the relationship between image, service quality, satisfaction and loyalty. This article
investigates how image, perceived service quality and satisfaction determine loyalty in a retail
bank setting at the global construct level, as well as the level of construct dimensions.
Drake et al., (1998) they worked on Barclays Life customer satisfaction and loyalty tracking
survey: a demonstration of customer loyalty research in practice. This paper outlines the
development by Barclays Life of a tracking survey to collect information concerning customers’
feelings of satisfaction and loyalty. It describes the determinants of satisfaction amongst
customers and the importance of each of these elements in determining loyalty. Initial qualitative
research was undertaken to allow the company to develop a frame of reference concerning the
elements of service which customers considered important. These initial findings were used in
later quantitative studies to establish the relative importance of the different elements, with a
view to understanding what was determining customer loyalty. The research culminated in the
development of a tracking survey instrument, now used by the company to monitor customer
satisfaction and loyalty levels across time and customer groups.
Nataranjan and Jahera (1999) have found the Indian customers becoming more demanding for
service quality since mid-1990s. This is on account of the fact that Indian banking sector was
opened up by this time and it suddenly led to enhanced choices for Indian customers.
Sharma and Patterson (2000) had proved Satisfaction has a significant impact on customer
loyalty and as a direct antecedent; leads to commitment in business relationships thus greatly
influencing customer repurchase intention (Morgan and Hunt 1994). Indeed, the impact of
satisfaction on commitment and retention varies in relation to the industry, product or service,
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Research Proposal Individual Report
environment, etc. Indeed, if the firm is able to manage the customer switching costs, it can still
retain the customer even though the satisfaction may be lower. The longer the relationship, the
more the two parties gain experience and learn to trust each other (Dwyer et al., 1987).
Consequently, they may gradually increase their commitment through investments in products,
processes, or people dedicated to that particular relationship. Social exchange theory attempts to
account for the development, growth and even dissolution of social as well as business
relationships. In other words, people (or businesses) evaluate their reward (cost) ratio when
deciding whether or not to maintain a relationship. Rewards and costs have been defined in terms
of interpersonal (e.g. liking, familiarity, influence), personal (gratification linked to self-esteem,
ego, personality) and situation factors (aspects of the psychological environment such as a
relationship formed to accomplish some task). Indeed, social capital has been conceptualized in
many different ways (for example Coleman 1994; Serageldin, 1999). Putman (2000) defines it as
a representation of the norms of reciprocity and trustworthiness that arise from social relations,
while the Organization for Economic Co-operation and Development [OECD] (2001, p. 23)
perceives social capital as “the resources gained through social ties, membership of networks and
sharing of norms”. Therefore, informal networks of social support, including relatives, friends
and other extra household connections such as a supportive community, have value. These
networks constitute a locus of access to resources; which in turn determine socioeconomic
outcomes.
Syzmanski and Henard (2001) in his work on Customer Satisfaction: A Meta-Analysis of the
Empirical Evidence. In their meta-analysis studies not found a single study, where satisfaction
would have a negative effect on loyalty. When testing the effects of satisfaction, we have in
addition to the dynamic complexity (mediation) also taken into account the detail complexity
(industry variable). Satisfaction could also influence loyalty in a context dependent way. One of
the key contextual factors could be the interdependence between satisfaction with a specific
provider and satisfaction with the marketplace in general. This link could be sector specific,
could depend on the similarity between providers, and also how customers perceive the sector in
general. The variable satisfaction has been normally found to have either a positive or no effect
on loyalty and therefore managers do not risk decreasing loyalty with their intentions to increase
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Research Proposal Individual Report
it. However, running these marketing activities is costly both in terms of managers’ attention and
resources deployed.
3.0 Methodology
3.1 Introduction
Research methodology is the road map or itinerary used by this researcher to accomplish the
goals of this research. This chapter describes the research design which has been used in this
study, the various procedures and processes employed to collect and analyze data.
3.2 Research Design
This Research design enable researcher to get answers regarding the research questions as well
as to test or confirm the hypotheses of this study. It did serve as a guide and much more a plan
during this research. This was done by way of step-by-step approach which involved selecting
the research method, research technique, sampling size and method and the last step describes
the technique of analyzing data. According to Flick (2012), the nature of the research design
indicates the nature of the research and lays down the structure of the research. Predominantly,
the descriptive research design was adopted which enabled the researcher to assess stress and its
effects on employees’ productivity in Meridian Food Manufacturing.
3.3 Conceptual Framework
Independent Variable Dependent Variable
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Product Quality Customer
Satisfaction
Price Fairness

Research Proposal Individual Report
Figure 2: Conceptual Framework
3.3 Population
The organization’s entire customers are considered as the population for the research. For the
research Meridian Food Manufacturing has been selected. Therefore the entire population will be
the customers of the Meridian Manufacturing Company’s product customers.
3.4 Sample Size
The sample size for the research is 50 customers who are customers of at Meridian Food
Manufacturing.
3.5 Sampling Method
Simple random sampling method has been selected to conduct the research in which the
respondents will be selected randomly.
3.6 Data Collection
The chief sources of data in this research were both primary and secondary data. Primary data is
one firstly or freshly collected by the researcher. It is mainly collected by way of questionnaires,
interviews and by observation. In this study, primary data was collected using questionnaires
which were distributed among the sampling population size. The questionnaires were design in
an easy and unambiguous way to enable the respondent to understand the questions. The
questions were divided into closed and open-ended. The Closed-ended ended questions which
were centred on issues that directly relates to the research topic were intended to restrict and
control the respondent’s answer in regard to the research objectives and this also provided an
objective base for comparative analysis.
The open-ended questions on the other hand were intended to give the respondent the freedom to
express their views without any constrain or restrictions. In a bid to supplement these responses
in the questionnaire, this research went further to engage some of the respondents in an interview
with the intention to verify and confirm the answers in the questionnaire. Primary data once
used, become secondary data for others. Therefore, these are data or information already
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Research Proposal Individual Report
collected by other researchers or institutions usually for different purposes (Blumberg et al.
2008). Secondary data is obtained from newspapers, journals, library, government publications,
institutional reports, Internet as well as from articles from past studies. Therefore, in this study,
this researcher consulted the Internet, the institution’s periodic reports, library, journals and
articles on the subject matter as sources of secondary data which gave this researcher extensive
information about the effect of stress on employee productivity.
3.7 Data analysis
(Sarantakos 1998) posits that the analysis of data enables the researcher to organize the data
collected so as to evaluate or assess the findings and to arrive at a reasoned and valid conclusion.
This data will be represented using IBM SPSS and findings presented in descriptive statistics
involving tables and bar charts.
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Research Proposal Individual Report
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Anderson, E.W., Fornell, C., and Mazvancheryl, S.K. (2004), “Customer Satisfaction and
Shareholder Value”, Journal of Marketing, Vol. 68, pg; 172–185.
David, M. C., Arturo, M., Agueda, E., (2007), “An integrated model of Price Fairness,
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