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ATTITUDES, SATISFACTION AND LOYALTY OF CUSTOMERS ON SHOP
SUKI OF KCC MALL OF GENSAN
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By KIMBERLY C. DELOS SANTOS JERALYN ARISTALES MAYLENE CAQUIS AMIRAH JOY CASTILLON ____________________________________________________ A Thesis Submitted to the Department of Bachelor of Science in Business Management Gensantos Foundation College Incorporated (GFCI) General Santos City ________________________________________ In Partial Requirement for the Degree of Bachelor of Science in Business Administration Major in Financial Management
April 2021 ACKNOWLEDGMENT This thesis would not have been possible without the all-embracing help, encouragement and prayers of those people whom the researcher would like to sincerely thank. The many acts of kindness and assistance extended to the researcher will always be cherished: Prof. Ronel T. Batisla-on, their adviser, who never get tired of encouraging and helping them in accomplishing this research study; Mrs. Nieva C Singson, the operation manager of Shopsuki of KCC Mall of Gensan, who whole heartedly accepts our request and helps us in our needs when we were conducting the study; The respondents of the study, the customers of Shopsuki of KCC Mall of Gensan, for their cooperation and willingness to answer the questionnaire; More than ordinary gratitude is due to the parents, friends and relatives of the researchers, for their undying support, encouragement, and love; To the unmentioned person but shared a big role to finish the research; Finally, to the Almighty God who continuously give her the wisdom, providence, strength and talent that sustained her to successfully finished this study. RESEARCHERS
IV PRESENTATION, ANALYSIS AND
V SUMMARY, FINDINGS, CONCLUSIONS AND
- Research Locale .….………………..……….………………………. .. - Research Respondents .….………………...................................... - Sampling Design .….………………................................................. - Research Instrument .….………………........................................... - Data Gathering Procedure .….……………….................................. - Statistical Treatment .….………………........................................... - Ethical Consideration .….………………..........................................
- INTERPRETATION OF DATA ………………………………………….… - Summary .….………………............................................................ RECOMMENDATIONS - Findings .….……………….............................................................. - Conclusions .….………………........................................................ - Recommendations .….……………….............................................
- REFERENCES …………………………………………………. .…………………… - A. Letter to the Establishment……. ..…………………………….… APPENDICES - B. Survey Questionnaire ...………………………........…….............. - C. Certification ...……………………….......................……..............
- CURRICULUM VITAE ………………………………………………………………..
Chapter I THE PROBLEM AND ITS SETTING Introduction Online Shopping is an important uprising of the Internet retail marketing in this new digital era. The number of consumers preferring internet for their shopping needs has been constantly gaining importance mainly because of its easy convenience, availability at all time and most importantly the safeties of consumers most especially in the light of pandemic and health crisis arises nowadays. In online retail market the relationship between loyalty and company success is complicated and even five percent customer turnover reductions can amplify bottom line profitability from 25 to 85 percent. As loyalty has a financial benefit, it’s not the only thing that determines whether repeat customer sales convert profitably. Companies need satisfied loyal customers for sustainability. According to Li et.al (2012), customer satisfaction is commonly viewed as a result of comparison between the consumption expectation and experience; and customer satisfaction is achieved when the final deliverable (i.e; experience) meets or exceeds a customer expectation. Satisfaction and loyalty are the key elements that determines the success of market concept implementation Khay Hooi (2012), acknowledged the perspective of online customer’s
Further, research in the general retail industry is still deficient in identifying key drivers of customer satisfaction and loyalty despite common knowledge that the dissatisfied customer is likely to have a negative impact on the firm’s bottom-line (Tsai et al., 2013). Customer loyalty, on the other hand, is the result of an organization’s creating a benefit for customers so that they will maintain and increasingly repeat business with the organization (Karatepe, 2011). It is in fact a deeply held commitment of customers to prefer products or services of a particular organization in future despite situational constraints or marketing influences to cause the switching behavior. Moreover, true customer loyalty is created when customers become advocate of an organization without any incentive (Rao et. al., 2015). In this paper, we try to determine whether attitude and customer’s satisfaction have an impact on customer loyalty. The aim of this research is to enhance our understanding in the formation of attitudes toward online shopping, contributors to consumer’s satisfaction upon gaining customer’s loyalty. Statement of the Problem The researchers aimed to find out the attitude, satisfaction and loyalty of customers to Shop Suki of KCC Mall of GENSAN. Specifically, the researcher sought answers to the following sub-problems:
- What is the socio-economic profile of the respondents in terms of: 1.1 Age:
1.2 Sex: 1.3 Civil Status: 1.4 Employment Status: 1.5 Estimate Monthly Income?
- What is the attitude of customers towards Shop Suki in terms of: 2.1 Tangibles; 2.2 Assurance: 2.3 Responsiveness 2.4 Reliability: and 2.5 Empathy?
- What is the level of satisfaction of the customers toward Shop Suki in terms of: 3.1 Product: 3.2 Pricing: 3.3 Promotion: 3.4 Distribution; and 3.5 After sales services?
- What is the level of loyalty of the customers toward Shop Suki in terms of: 4.1 Convenience: 4.2 Expectations: 4.3 Customer Services: and 4.4 Rewards?
The Researchers. As a future business managers and marketers this encourages them to exert more effort to prepare them to become an effective and successful business managers and marketers. This study will also develop them understanding, patience and open-mindedness. Definition of Terms For better understanding of words used in this study, the following terms were conceptually and operationally defined: Attitude. Webster’s Dictionary (2018) defines it as t he posture, action, or disposition of a figure or a statue. Operationally, this refers to the manner or behavior toward online shopping. Customer’s satisfaction. Rudansky-Kloppers (2014) defined customer satisfaction “as the degree to which an organization’s product or service matches up to the expectations of the customer. Operationally, it is the key element that customers of Shop Suki – KCC Mall of General Santos City had repeat patronage to their services. Customer loyalty. Business Marketing News (2012), define this is as an act of choosing one company’s products and services consistently over their competitors. Operationally, this was viewed as the strength of the relationship between the Shop Suki online and service delivery and its customers resulting to repeat patronage. Shop Suki of KCC Mall of Gensan. In this study, this is one of the online groceries, pharmacy and department store essentials shopping application
delivered straight to households of consumers. Operationally, this is widely-used that satisfies and gains the loyalty of customers through its services. Chapter II REVIEW OF RELATED LITERATURE AND STUDIES This chapter presents the review of related literature and studies that give significant ideas in the development of this study. Related Literatures
2. Level of Customer’s Attitude 2.1 Tangibles Tangibles have been defined as personal appearance, physical facilities like store decorations, display and equipment (Salegna et.al., 2011). It refers to the shoes interior, the appearance and condition of the shelf space, uniform of the staff, the appearance and design of the brochure, the store’s sign and its advertisements. Tangibles are basic elements such as access to the facilities and the safety and convenience for customers (Bellini et al., 2015). Tangibles are used by firms to convey their image and signal quality (Zeithaml et al., 2016). Furthermore, (Wilson et al, 2013) defined it as representing the service physically. This dimension provides physical representations or images of the service that customer, particularly new customers will use to evaluate quality. Although many service companies often use tangibles, they use this dimension to enhance their image, provide continuity, and signal quality to customers. Most
also a very important dimension, because every customer feels more valued if they get the best possible quality in the service. It also means that the employees of a service organization are ready to help customers and respond to their demand as well as to notify customers when service will provide, and then give quick service. If a service fails to occur, the ability to recover quickly and professionally can generate very positive perceptions of quality. Moreover, according to Spiller et. al., (2016) responsiveness refers to being willing to help. This dimension focus on the notion of flexibility and ability to customize the service to customer needs. The Specific performance are related to the communicated to customer by the length of time they have to wait for assistance, answers to questions, or attention to problems. 2.4 Reliability Zeithaml (2016) defined this as how the company are performing and completing their promised service, quality and accuracy within the given set requirements between the company and the customer. It means that the company provides a service to its customer at a time without making any errors and delivers what it promised during the time that was agreed upon. Reliability is considered as the most important dimension of service quality. Furthermore, reliability means that the company delivers on its promises— promises about delivery, service provision, problem resolution, and pricing. This dimension focuses on the customers’ needs. The customers expect that the
service provider can keep their promise about the service outcomes and core service attributes (Markovic, 2013). 2.5 Empathy According to Ibáñez et. al., (2016) it is how the company cares and gives individualized attention to their customers, to make the customers feeling extra valued and special. It includes access, communication and understanding the needs of customer. It is concerned with providing care and individual attention for customer. In this dimension, the organization understands the problems of customers and results in their favor, as well as customers with individual personal attention. Empathetic organization didn’t lose touch of what it is like to be a customer of their own organization. As such empathetic organizations understand the needs of their customer and make their services accessible to them. In addition, Sun et. al., (2012) defined empathy as the caring and individual attention the firm provides its customers. It involves giving customers individual attention and employees who understand the needs of their customers and convenience business hours. Empathy is how to treat customers as individuals. This dimension focuses on the personalized or customer service, that the customers are unique and special and that their needs are understand Klaus et. al., (2014).
volume of the product as well as the customers' satisfaction and loyalty to a great extent. Hence, the firms had begun to develop the satisfaction and loyalty of the customers by offering quality goods and services. Tao (2014) pointed out that consumer behavior refers to the selection, purchase, and consumption of goods and services for the fulfillment of their basic and the fundamental needs. There are different phases involved in consumer behavior. Initially, the consumer finds the needs and then goes for the selection and budgets the commodities and take the decision to consume. Product quality, price, service, consumer emotion, personal factors, situational factors, a perception of equity or fairness, product features are some of the factors that influence the customer satisfaction. Trust has long been regarded as a catalyst for buyer–seller transactions that can provide consumers with high expectations of satisfying exchange relationships. It is defined as the willingness of a party to be vulnerable to the actions of another party based on the expectation that the latter one will perform particular actions, which are important to the former one [31]. In other words, when firms act responsibly, customers are assured, and the “perceived risk with the firm is likely reduced”, therefore enhancing the possibility of a positive attitude and behavior by the customer (Devila, 2017). Similarly, Abdulah (2013) pointed out that the attitude, on the other hand, is a psychological tendency that is expressed by evaluating a particular entity with some degree of favor or disfavor. In a marketing context, it is the feeling of an individual (positive or negative) towards the product or brand.
Furthermore, Krishna (2010) concluded in his study that he measurement of consumer behavioral variables in this study refers to the theoretical model of consumer behavior, that consumer behavior is important in describing how individual consumers make informed decisions to purchase products. The empirical evidence shows that consumer behavior has a positive and significant effect on satisfaction and customer loyalty. Positive customer attitudes towards companies and brands have long been associated with business outcomes such as increased revenues and brand loyalty (Trang et al., 2019). As such, many businesses will seek to improve the customers’ favourable attitude towards their brands in an effort to drive customer loyalty (Kim et al., 2016)
3. Level of Customer’s Satisfaction Khristianto, Kertahadi ans Suyadi (2012), customer satisfaction is commonly viewed as a result of comparison between the consumption expectation and experience; and customer satisfaction is achieved when the final deliverable (i.e; experience) meets or exceeds a customer expectation. 3.1 Product A product can be anything either tangible like a product or intangible like a service that can be offered to a market for acquisition, attention, consumption or use that might fulfill the customer needs or want (Klaus et. al., 2014). A product is any good or service that fulfills consumer needs or desires. It can also be defined as a bundle of utilities that comes with physical aspects such
is defined as price + quality. Customer perception of the value for a product therefore requires that quality products are offered at a price consistent with the product offering (Kim et al., 2016). Because of the importance of price, it is a traditional element of any marketing plan, known to influence customer behavior (David et al., 2014). Furthermore, the right combination of price and quality- value-has always been a key driver of companies that operate in the fast-food industry (Ryu and Han, 2010). Therefore, value, or price fairness is a determinant of a buyer ‘s expectation and affects customer satisfaction (Andaleeb and Caskey, 2017). 3.3 Promotion All communication method that used to provide the product’s information to the consumers (Elke Smit, 2013). Promotion is an advertisement of a product to sell to customer and this process can be considered as communication with the customer using different means or methods of advertising (Mohammed & Hilda, 2015). Moreover, Krasnikov et.al., (2010) emphasized that promotion involves decisions related to advertising, salesforce, direct marketing, public relations, advertising budgets, etc. The primary aim of promotion is to spread awareness about the product and services offered by a company. It helps in persuading consumers to choose a particular product over others in the market. 3.4 Distribution It is referred to both the location where the customer visits and buys the product as the distribution channel (Elke Smit, 2013). Place can be also
considered as the distribution facilities and location which help to work around the demand and supply of a product and to resolve the variables that hinder the supply of the product to the targeted market (Copley, 2014). Place involves choosing the place where products are to be made available for sale. The primary motive of managing trade channels is to ensure that the product is readily available to the customer at the right time and place. It also involves decisions regarding the placing and pricing of wholesale and retail outlets. (Kaura, 2012) According to Meyer et. al., (2017) distribution channels such as outsourcing or company transport fleets are decided upon after cost-benefit analysis. Small details such as shelf space committed to the product by department stores are also included. 3.5 After-Sales Service After-sales service refers to all activities that a company does after selling a product or service to customers in order to satisfy customers and help them to receive the highest value of the product or service they have bought (Roosta,
Oliver (2013) asserts that after-sales service includes what you do at the point of sale, including your customer service and selling techniques. It also includes how you follow up after the customer has left, such as providing follow- up contact and effectively dealing with complaints. Furthermore, Sureshchandar et. al., (2013) pointed out that after-sales service is almost a mandatory section in the overall marketing strategy of any
