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Nov 24, 2024
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Abstract
The study examines into the underlying reasons for the drop in consumer satisfaction in retail
establishments and offers workable methods to improve customer loyalty and experience. It
explores topics such changing market dynamics, disruptive technology, and dynamic consumer
tastes while maintaining a focus on a modern viewpoint.
The study used a mixed-methods approach, integrating quantitative data on sales trends with
qualitative analysis of consumer feedback. Quality of customer service, product availability,
pricing transparency, and the incorporation of state-of-the-art digital technologies are important
emphasis points, and external issues like competitive pressures and economic situations are also
looked at.
Tackling these issues requires focused approaches including improved staff training, streamlined
inventory control, open pricing structures, and the smooth incorporation of technology to
improve the shopping experience. In order to help merchants, revitalize client satisfaction and
cultivate long-lasting loyalty, this research attempts to provide actionable insights that are
specific to the present retail environment.
Introduction and motivation
Customer happiness is one of the most important success factors in the ever-changing retail
industry. It has the power to either push a company to the edge of customer preference or take it
to new heights (Verhoef et al., 2021). The necessity for retailers to not only endure but also
prosper in a world of changing customer habits, technology upheavals, and intensified rivalry
drives this study.
The dynamically shifting consumer tastes in the market demand a thorough investigation of the
variables behind the falling customer satisfaction rates in retail establishments. This study is
driven by the realization that merchants must quickly adjust to the changing needs of their
customers and the speed at which technology is developing in the modern world (Verhoef et al.,
2021). Furthermore, the dynamics of the industry have changed dramatically due to the rise of
social media, the predominance of online shopping, and the expanding power of e-commerce
behemoths. As a result, it is imperative that tactics for preserving and enhancing consumer
happiness be thoroughly reevaluated.
The main objective of this research is to find practical insights that will enable retailers to face
the issues they face now and to predict and prepare for future changes in consumer expectations
as the retail industry struggles with these complexity (Verhoef et al., 2021). The goal of this
study is to provide retailers with a thorough road map for restoring consumer pleasure,
cultivating long-term customer loyalty, and securing a strong position in the cutthroat retail
market of the present and the future.
Systematic literature review
According to recent studies, overall satisfaction levels in retail environments are significantly
influenced by the quality of the customer service provided (Lindecrantz et al., 2020). Academics
2
highlight how modern consumers have different expectations, which makes it very important for
brick-and-mortar retailers to provide seamless, individualized experiences (Lindecrantz et al.,
2020).
One of the most common themes in the literature is how technology affects consumer happiness.
In their 2023 study, Faccia et al. explore how incorporating digital technologies improves the
buying experience. The survey clarifies how well technological innovations—like self-checkout
choices, mobile apps, and tailored recommendations—account for the shifting needs of tech-
savvy customers. Retailers looking to maintain their competitiveness in an increasingly digital
retail environment seem to need to comprehend and leverage these technologies.
Another important factor that has been examined in recent research on customer happiness is
pricing transparency. (Ray & Nayak, 2023) look into the complex connection between pricing
tactics and consumer attitudes. It has been discovered that transparent pricing methods, which
incorporate unambiguous cost and value proposition communication, increase consumer
happiness and trust. This becomes more important in a time when customers are concerned about
openness in their dealings with retailers in addition to price.
Although a lot of research has been done on internal retail store characteristics, the impact of
external factors on customer satisfaction dynamics is becoming increasingly apparent. The
impact of competitive factors and economic situations on customer satisfaction levels and
perceptions is examined by Šostar & Ristanović (2023). For example, economic downturns may
affect consumer expectations and purchasing patterns, requiring businesses to adopt flexible
business practices. Retailers trying to navigate a volatile and dynamic market must have a
thorough understanding of the outside influences that drive consumer mood
.
Research Question
Research Question: What are the contributing factors to the decreasing customer satisfaction
ratings at the retail establishment, and what steps may be taken to enhance the customer
experience and foster loyalty?
Hypothesis
The study demonstrates that the observed drop in consumer satisfaction within retail outlets is
largely caused by a convergence of issues relating to technology integration, open pricing, and
excellent customer support. It is expected that deliberate actions aimed at these variables would
result in a significant enhancement of the entire customer experience, which will in turn promote
increased customer loyalty.
Methodology and data collection
Methodology
Research Design
3
The study employs a mixed-methods approach to comprehensively investigate the factors
influencing declining customer satisfaction in retail stores (Tenny et al., 2022). This includes
both qualitative and quantitative elements to provide a holistic understanding.
Sampling
A purposive sampling method will be utilized to select retail stores representing diverse sizes,
product categories, and geographical locations (Tenny et al., 2022). This guarantees a diverse
sample that encompasses a wide range of client experiences.
Data Collection
Quantitative Phase: Surveys
Structured surveys will be distributed to a representative sample of retail store customers.
Surveys will include questions on satisfaction levels, perceived factors affecting
satisfaction, and demographic information (Tenny et al., 2022).
The use of a Likert scale will allow for quantitative analysis of customer responses.
Qualitative Phase: Interviews and Focus Groups
•
Conducting in-depth interviews with managers and employees of retail stores to learn
more about the internal procedures that impact consumer happiness.
•
Have in-depth group conversations with clients to learn more about their perspectives and
experiences (Tenny et al., 2022).
We plan to utilize open-ended questions in order to obtain more detailed qualitative data.
Data Collection Instruments
Surveys
•
It is planned to create a structured questionnaire that includes both multiple-choice and
Likert-scale questions.
•
The questions will encompass topics including the caliber of customer service,
integration of technology, transparency in pricing, and general contentment.
Interviews
•
A semi-structured interview guide will be created to help staff and management of retail
stores have conversations.
•
The main topics of discussion will include employee training, internal variables affecting
customer
happiness, and improvement tactics.
Focus Groups
•
The focus group meetings with customers of retail stores will be facilitated by a
discussion guide.
•
Personal stories
,
tastes, and recommendations for raising client happiness will all be
covered.
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Ethical Considerations
•
Informed consent documents will be provided by each participant.
•
Responses will be kept secret and confidential during data processing and reporting.
•
The study will adhere to ethical norms and regulations to protect the rights and welfare of
participants (Arellano et al., 2023).
According to Arellano et al., (2023) triangulating data from several sources is the goal of this
research, which will enhance the study's conclusions and offer a thorough understanding of the
variables affecting the decline in customer satisfaction in retail operations.
Model design / data analysis
Model Design
Conceptual Framework
The study adopts a conceptual framework encompassing three primary elements: customer
service quality, technological integration, and pricing transparency. These factors are considered
as independent variables affecting customer satisfaction, with the ultimate goal of influencing
customer loyalty.
Variables
Independent Variables:
Customer Service Quality
Technological Integration
Pricing Transparency
Dependent Variables:
Customer Satisfaction
Customer Loyalty
Hypotheses
H1: The consumer happiness and the quality of the services provided to customers are
positively correlated.
H2: The level of technological integration positively influences customer satisfaction.
H3: Pricing transparency is positively associated with customer satisfaction.
H4: Improved customer satisfaction leads to increased customer loyalty.
Data analysis
Qualitative Analysis
Descriptive Statistics involves analyzing frequency distributions, mean scores, and
standard deviations for every variable.
5
Correlation analysis: Analyzing how independent and dependent variables relate to one
another (Tenny et al., 2022).
•
Regression analysis: evaluating the effects on consumer satisfaction of pricing
transparency, technology integration, and high-quality customer service.
•
Comparative Analysis
:
Examining how satisfied people are with various demographic
groups.
•
• Thematic Coding: locating recurrent themes in focus groups and interview qualitative
data.
•
Analyzing textual data to get insights into client experiences and views is known as
content analysis.
•
• Pattern Recognition: To extract qualitative insights, find similarities and differences in
replies (Tenny et al., 2022).
Results and Conclusion
In conclusion, this study examined a variety of aspects related to the deteriorating customer
satisfaction in retail settings, including technological integration, pricing transparency, and the
caliber of customer service. A thorough knowledge was obtained through the use of mixed-
methods research, which combined qualitative viewpoints from focus groups and interviews with
quantitative insights from surveys.
Significant relationships between the independent variables and customer satisfaction were found
using statistical studies, confirming the significance of technology integration, transparent
pricing, and high-quality customer service. Regression analysis, in particular, demonstrated how
these parameters have a beneficial influence on customer satisfaction.
Thematic coding and content analysis provided qualitative insights into complex consumer
experiences and views that enhanced the quantitative results. By combining this data, a
comprehensive picture of the difficulties retail stores face and potential areas for development
was revealed.
Beyond the confines of academia, this research has practical consequences for retail
practitioners. Adopting technology, improving pricing strategies, and providing better customer
service can all work together to increase customer happiness and, in turn, create long-term client
loyalty. Retailers may maintain their business in a cutthroat market by addressing these issues
and adjusting to changing consumer expectations.
Implications in supply chain management
The study findings have important ramifications for supply chain management in the
retail industry. One important lesson is how important technology integration is to raising
customer happiness (Jiang & Stylos, 2021). Retailers should make use of cutting-edge
technology to optimize supply chain procedures in order to guarantee effective inventory control
and prompt order fulfillment (Jiang & Stylos, 2021). By incorporating data-driven technology,
supply chain visibility can be improved, enabling real-time tracking and adaptability to shifting
client demands.
6
The study also emphasizes how crucial pricing transparency is to customer satisfaction. The
supply chain is also subject to transparent pricing policies, which highlight the importance of
open communication and cost structure clarity. Establishing transparent pricing practices in the
supply chain promotes fair and ethical supplier relationships in addition to building customer
trust.
Quality of customer service has been recognized as a critical component that affects the entire
supply chain network (Brun et al., 2020). In order to guarantee that customer-centric practices
are integrated across the supply chain, retailers need to work closely with their suppliers and
logistical partners (Brun et al., 2020). Customer satisfaction can be increased by investing in
communication channels and training programs that improve overall service quality.
References
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7
Arellano, L., Alcubilla, P., & Leguízamo, L. (2023, March 25).
Ethical Considerations in
Informed Consent
. Www.intechopen.com; IntechOpen.
https://www.intechopen.com/chapters/1123544
Brun, A., Karaosman, H., & Barresi, T. (2020). Supply Chain Collaboration for Transparency.
Sustainability
,
12
(11), 4429. MDPI. https://doi.org/10.3390/su12114429
Faccia, A., Le Roux, C. L., & Pandey, V. (2023). Innovation and E-Commerce Models, the
Technology Catalysts for Sustainable Development: The Emirate of Dubai Case Study.
Sustainability
,
15
(4), 3419. https://doi.org/10.3390/su15043419
Jiang, Y., & Stylos, N. (2021). Triggers of consumers’ enhanced digital engagement and the role
of digital technologies in transforming the retail ecosystem during COVID-19 pandemic.
Technological Forecasting and Social Change
,
172
(2021), 121029.
https://doi.org/10.1016/j.techfore.2021.121029
Lindecrantz, E., Gi, M. T. P., & Zerbi, S. (2020, April 28).
Personalized experience for
customers: Driving differentiation in retail | McKinsey
. Www.mckinsey.com; mckinsey.
https://www.mckinsey.com/industries/retail/our-insights/personalizing-the-customer-
experience-driving-differentiation-in-retail
Ray, S., & Nayak, L. (2023). Marketing Sustainable Fashion: Trends and Future Directions.
Sustainability
,
15
(7), 6202. MDPI. https://doi.org/10.3390/su15076202
Šostar, M., & Ristanović, V. (2023). Assessment of Influencing Factors on Consumer Behavior
Using the AHP Model.
Sustainability
,
15
(13), 10341. MDPI.
https://doi.org/10.3390/su151310341
Tenny, S., Brannan, J., & Brannan, G. (2022, September 18).
Qualitative Study
. National Library
of Medicine; StatPearls Publishing. https://www.ncbi.nlm.nih.gov/books/NBK470395/
8
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein,
M. (2021). Digital transformation: A multidisciplinary reflection and research agenda.
Journal of Business Research
,
122
, 889–901. Sciencedirect.
https://doi.org/10.1016/j.jbusres.2019.09.022
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