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Customer Satisfaction Essay

Filipino’s have been given a chance to finally choose groceries business and minimart across the country. One of the pioneer groceries in town is the Consumers Minimart Inc. formerly named Caragan. Ever since Consumers Minimart Inc. experienced a lot of competitors on their times, minimart is still existing and alive.At this time many establishments exist like CSI, Royal Mall, Save More, but the Consumers Minimart Inc. is still having a profit and their loyal customers were always remained.Bayambang is one of the town with the largest number of barangays in Pangasinan, a largest place to establish a business. Business opportunity is increasing like mini grocery market, malls, fast food chains, banks, water refilling station and other small and big enterprises. This business establishment where very profitable and have impact to the customers especially here, is the groceries stores because customer or people can get or buy their daily needs into this kind of business, and one of that business is the Consumers Minimart Inc.Consumers Minimart Inc. is owned and manage by Jovita De Leon. It was established last March 18, 2010.

They established their business in Bayambang because this place is very promising town, has 77 barangays and there is a lot of nearby town, and prospect customers such as Bautista, Alcala, Urbiztondo, and Malasiqui.Caragan was became Consumers Minimart Inc. because of being long term industry and the owners were became stockholders. The standard monthly income has been reach also by the said business. The formerly competitors were Lita’s grocery, old Royal mall stores and some local stores located at the market of Bayambang.But there are things that this business needs to improve, including the satisfaction of the customers.

Consumers Minimart Inc. need additional effort in making their service much better including in queueing system or waiting time, delivery service, visual merchandising and physical set-up, and add to the strategies of the business. This will be used as strategy to makes their customer more satisfy in their service, it will add to have more customers and become more profitable, more improvement in their services. Consumers Minimart Inc. also need to improve their marketing strategy because it is a part of over all plan of the said business by establishing another branch in the province of Pangasinan for expansion for them to become more popular in terms of selling diffirent kinds of product.

According to Peng Shao and Zeliang Sun (2012), Groceries today have to deal with the more dynamic and competitive environments than before. The frequent mergers and acquisitions among the groceries suppliers and retailers made industry structure strongly concentrated and competitive.And the limited retail stores are being increasingly standardized and homogenized. Facing the Bayambang market which only has 96,609 population, the three major competitors grocery, CSI, Savemore and Royal Mall need to differentiate themselves. Thus maintaining long-term relationship with customers is important, in order to keep their good organizational performance and profits. Identifying the key attributes influencing customer satisfaction during customers’ purchasing in their stores is critical.

Groceries need to explore their resources and internal capabilities, so that they can make proper strategies to remain competitive. Unique attributes and sub-attributes are the important resources and internal capabilities of each grocer, which can help grocer to differentiate themselves from its competitors, and maximize the level of customer satisfaction.

Customer satisfaction means that customer needs are fulfilled when doing the purchases. So the groceries must understand what the customers want and provide customers with what they need. A large number of studies have demonstrated a positive relationship between organization performance and customer satisfaction.

Keeping long-term customer satisfaction is seen as a critical success factor for grocery retailers, because the competition in the groceries industry is strong and margins are becoming limited. There is a straight forward and simple link between customer satisfaction and profits.

Retailers used to shape customers’ shopping habit, without listening much to consumers’ needs and desires. However, as the industry has been changing, customers change their shopping behavior. For example, the proximity between home and stores become less concerned, so retailers should adapt to new change of customers’ shopping behavior. Retailers must concern about the attributes, including quality of product, assortment, customer attention, additional service, store atmosphere, store location and price and discount, so that they can shorten the customers’ perception gap.

In the future, the company will have applied its best practices especially to the customer satisfaction in their service not only in the province, but also in the entire Philippines. These Best Practices will not only consist of the most efficient systems, but also consider human elements such as local knowledge and relationship building which are equally essential in attaining great satisfaction.

Statement of the problemThis study focused on the extent of customer satisfaction of Consumers Minimart Inc. located in Bayambang, Pangasinan. Specifically, this study sought to answer the following questions: 1. What is the profile of customers in terms of :

a) Types of customers ; and
b) Average purchased per transaction
2. What is the extent of customer satisfaction in terms of :
a) Queueing system or Waiting timec) Visual merchandising
b) Delivery systemd) Physical set-up
3. What are the problems encountered by the customer in terms of:
a) Availability of product
b) Parking area
c) Sanitation
d) Ventilation
e) Services Accuracy
f) Facilities
g) Physical set-up
h) Distribution
i) Inventory
j) Pricing

Scope and Delimitation of the Study

This study determined the extent of customers satisfaction of Consumers Minimart Inc. in the Municipality of Bayambang. The respondents of this study have the total of 100 respondents in a random basis like owners of sari-sari store or retailers, and end users who purchased in the Consumers Minimart Inc., regarding in their types of customers and average purchased per transaction, queueing system or waiting time, delivering system, visual merchandising, physical set-up, availability of product, parking area, sanitation, ventalition, services accuracy, pricin, inventory, distribution and facilities.

Significance of the Study

The researchers believed that the result of this study would benefit the following. The Manager. This study will enhance competence in the management and operation of the business and will provide with additional knowledge on how to improve business and to get customers satisfaction and loyalty.

The Customers. The result of this study will serve as the source of affordable and easy buying decision. They would also be informed and be guided about the different services and existing prices that the business render to the public which the people will appreciate.

The Government. This study will bring about additional income to the local government in the form of taxes and they will be provided with some needed basis to come up with rules and regulations to prevent cheating on the suggested retail price. The Future Entrepreneurs. This study will serve as a guide to those future entrepreneurs who wants to establish this kind of business.

Definition of Terms

To facilitate understanding of this study, the following terms were defined operationally. Consumers Minimart Inc. It is the name of the mini grocery business in the Municipality of Bayambang, that we are studying in our research.

Satisfaction. Is an attitude of a person of being happy of the products and services offer.
Suppliers. Is a person, company or organization that sells or supplies something such as goods or equipments to business.
Customers. They are the retailers and end-users who consumed or use the products and services.
Product. Something that is made or created by the manufacturer or supplier. It is offered to customers.
Services. A product of human activity meant to satisfy a human need but not constituting item of goods.
Queueing System. The queuing discipline describes the order in which arrivals are serviced.
Visual Merchandising. Is a form of store presentation of all forms of advertising and marketing.
Physical Set-up. Is a form of displaying the products.
Delivering System. process for conveying a product or service to a customer.

Chapter 2
REVIEW OF RELATED LITERATURE AND STUDIES

This chapter present a review of professional literature and related studies relevant to the present study. This literature and studies have given the researchers more information and clearer view of the problem in this study. Those that are relevant to this research are presented in the following discussion.

RELATED LITERATURE

This section presents the both foreign and local related literature relevant to the study. This relevance is shown by the proponents in order to give more reason and understanding of the proposition.

Customer Satisfaction

Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty. Customer satisfaction data are among the most frequently collected indicators of market perceptions. Organizations need to retain existing customers while targeting non-customers. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate.

The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization’s products. In retailing, consumers typically patronize multiple outlets. Thus, an important issue is why consumers vary in how they divide their purchases across outlets and how outlets can get a greater share of consumer expenditures. Two potential avenues for increasing customer share are to raise customer satisfaction, and increase repeat purchase through loyalty cards.

This study examines the effects of customer satisfaction and loyalty cards as well as consumer characteristics on customer share spent on the primary grocery store. The findings suggest that customer satisfaction has a positive, albeit modest, effect on share while consumer economic shopping orientation has a negative direct effect on share. The economic orientation of shoppers, their felt importance of a personal relationship with store personnel, and the level of their aggregate purchase volume moderate the effect of satisfaction on customer share. Finally, the results provide mixed support for the impact of loyalty cards on customer behavior.

Customer Satisfaction in Queuing Systems

Companies have to increase their customers’ satisfaction to keep their competitiveness. In services, waiting has great impact on service level and customer satisfaction. Consequently, in time-based competition, one of the main objectives of service companies is to minimize customer waiting. Waiting can be defined in several ways; however, the ultimate management objective should be the maximization of customer satisfaction. The paper shows how customer satisfaction can be approximated with utility functions and establishes a theoretical background for utility transformation of waiting time. The case study of the checkout system of a real do-it-yourself superstore is used to illustrate the application of the suggested method. The results show that utility related objective function may justify queuing system changes even if the average waiting time does not improve.

Elements of Queueing Systems

Population of Customers can be considered either limited (closed systems) or unlimited (open systems). Unlimited population represents a theoretical model of systems with a large number of possible customers (a bank on a busy street, a motorway petrol station). Example of a limited population may be a number of processes to be run (served) by a computer or a certain number of machines to be repaired by a service man. It is necessary to take the term “customer” very generally. Customers may be people, machines of various nature, computer processes, telephone calls, etc. Arrival defines the way customers enter the system. Mostly the arrivals are random with random intervals between two adjacent arrivals. Typically the arrival is described by a random distribution of intervals also called Arrival Pattern.

Queue represents a certain number of customers waiting for service (of course the queue may be empty). Typically the customer being served is considered not to be in the queue. Sometimes the customers form a queue literally (people waiting in a line for a bank teller). Sometimes the queue is an abstraction (planes waiting for a runway to land). There are two important properties of a queue: Maximum Size and Queuing Discipline. Maximum Queue Size (also called System capacity) is the maximum number of customers that may wait in the queue (plus the one(s) being served). Queue is always limited, but some theoretical models assume an unlimited queue length. If the queue length is limited, some customers are forced to renounce without being served. Queuing Discipline represents the way the queue is organised (rules of inserting and removing customers to/from the queue).

There are these ways: 1) FIFO (First In First Out) also called FCFS (First Come First Serve) – orderly queue; 2) LIFO (Last In First Out) also called LCFS (Last Come First Serve) – stack; 3) SIRO (Serve In Random Order); 4) Priority Queue, that may be viewed as a number of queues for various priorities; and 5) Many other more complex queuing methods that typically change the customer’s position in the queue according to the time spent already in the queue, expected service duration, and/or priority. These methods are typical for computer multi-access systems. Most quantitative parameters (like average queue length, average time spent in the system) do not depend on the queuing discipline. That’s why most models either do not take the queuing discipline into account at all or assume the normal FIFO ( First In First Out) queue. In fact the only parameter that depends on the queuing discipline is the variance (or standard deviation) of the waiting time.

There is this important rule (that may be used for example to verify results of a simulation experiment). The two extreme values of the waiting time variance are for the FIFO (First In First Out) queue (minimum) and the LIFO (Last In First Out) queue (maximum). Theoretical models (without priorities) assume only one queue. This is not considered as a limiting factor because practical systems with more queues (bank with several tellers with separate queues) may be viewed as a system with one queue, because the customers always select the shortest queue. Of course, it is assumed that the customers leave after being served. Systems with more queues (and more servers) where the customers may be served more times are called Queuing Networks. Service represents some activity that takes time and that the customers are waiting for. Again take it very generally. It may be a real service carried on persons or machines, but it may be a CPU time slice, connection created for a telephone call, being shot down for an enemy plane, etc. Typically a service takes random time.

Theoretical models are based on random distribution of service duration also called Service Pattern. Another important parameter is the number of servers. Systems with one server only are called Single Channel Systems, systems with more servers are called Multi Channel Systems. Output represents the way customers leave the system. Output is mostly ignored by theoretical models, but sometimes the customers leaving the server enter the queue again (“round robin” time-sharing systems). Queuing Theory is a collection of mathematical models of various queuing systems that take as inputs parameters of the above elements and that provide quantitative parameters describing the system performance. Because of random nature of the processes involved the queuing theory is rather demanding and all models are based on very strong assumptions (not always satisfied in practice).

Many systems (especially queuing networks) are not soluble at all, so the only technique that may be applied is simulation. Nevertheless queuing systems are practically very important because of the typical trade-off between the various costs of providing service and the costs associated with waiting for the service (or leaving the system without being served). High quality fast service is expensive, but costs caused by customers waiting in the queue are minimum. On the other hand long queues may cost a lot because customers (machines e.g.) do not work while waiting in the queue or customers leave because of long queues. So a typical problem is to find an optimum system configuration (e.g. the optimum number of servers). The solution may be found by applying queuing theory or by simulation.


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