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QUALITY

The Management Of Winners Supermarkets Marketing Essay

In todays competitive environment, organizations have to continuously meet or go beyond customers expectations to be able to capture customer loyalty. Service quality has been regarded as a chance for businesses to make it through on the marketplace. However, the amount of service quality is assessed by the customer after discovering and evaluating the difference between expectation and perception that will also reveal the amount of client satisfaction. Thus, the ideas of service quality and customer satisfaction have immediate and indirect impact on organizational performance and customer habit. Thus, the provision of high service quality will eventually lead to client satisfaction and profitability (Ladhari et al. 2011). Nowadays, management want by any means to fulfill customers' needs, as this will make customers loyal. On the other hand, customers are obsessed about quality, innovation and eco-products alternatively than just low priced prices. Therefore, supermarkets that are in position to provide quality services to customers, catch strong market position and goodwill on the marketplace.

In Mauritius, supermarkets have gained significant recognition in the retailing field in the modern times. These shops require ambitious marketing strategies in order to entice and maintain customers while competing with rivals. As the unique characteristics: intangibility, heterogeneity, inseparability and perishability, make it difficult to assess service quality, it offers in fact become a important factor to differentiate from competitors because the products are usually the homogenous in every supermarket.

Customer satisfaction symbolizes to what level the client is satisfied with a product or service after having attempted it. In fact, there exists a direct romantic relationship between customer satisfaction and future buying habits of customers. This is why service quality and client satisfaction are often predicated on customer's expectation and belief. When an experience runs beyond the expectation, the customer is overwhelmed. Unsatisfied customers may eventually move to the firm's rivals. Thus, it is crucial for Winner's Supermarket to devise a systematic way of measuring customer satisfaction and take immediate activities if customers are unsatisfied. This helps in knowing the perceptions of clients about services and ultimately builds ways of convert the weaknesses into talents of the business enterprise in order to accomplish competitive edge over its rivals.

Chapter breakdown of the dissertation

The structure of the study is as practices:

Chapter 1: Introduction

This chapter gives an advantages to client satisfaction and the concept of service quality. Indeed, the business profile is stated as well as a light explanation of the other chapters is created.

Chapter 2: Books Review

This chapter stresses on the theoretical track record of the study while focusing on the effect of customer's anticipations and perceptions on the grade of service and customer satisfaction. This enables a deeper understanding of the subject matter. Moreover, the measurements of service quality, the SERQUAL model and the Difference analysis are talked about.

Chapter 3: Research Methodology

This chapter offers a framework of the methodology to be used so the dissertation is completed in a systematic way start from the condition definition to the ultimate demonstration of the statement. A sample size of 200 people, preferred using a quota sampling method, was surveyed.

Chapter 4: Analysis and Interpretation of data

The results of the survey being carried out at Winner's Supermarket are provided in section four. SPSS software can be used to analyse the questions in the questionnaire. Combination tabulation and correlations were also generated to provide the findings in a far more understandable manner.

Chapter 5: Recommendations

In this section, suggestions are drawn predicated on the research of the info being collected. This can eventually help improve the level of service quality at Winner's Supermarket and catch the attention of more customers.

Chapter 6: Conclusion

This chapter represents the final part of the dissertation and implies whether the goals of the analysis have been achieved through the many steps undertaken in every all these chapters.

Company Profile

Winner's Supermarket, founded in 1995, is a branched self-service store supplying a broad variety of food and household goods. The supermarket's motto has been designed as"Mon superbonmarch prЁs de chez moi!" which reflects the easy accessibility and low cost products to its customers. Its wide variety products include iced foods, consumer goods and numerous non-food goods comprising pharmaceutical products and pet materials. Additionally, Winner's has its bakery supplying a variety of pastries and breads.

At present, Winner's has an outlet in virtually every region around Mauritius and this totaled to 19 branches across the island and these are:

Port-Louis

Coromandel

Chemin Grenier

Bambous

Curepipe

Centre de Flacq

Terre-Rouge

Triolet

Goodlands

Rose-Belle

Vacoas

St Pierre

St Martin

Roche Bois

Belle Rose

Bel Air

RiviЁre du Rempart

Plaine Magnien

PerebЁre

Besides, Winner's also provides various facilities for its customers including simple car parking, free delivery of groceries at door step as well as the shopping time which is often extent till past due in the evening.

Vision of Winner's

The company pursues a vision to "be the reference point of the large circulation in areas where we could engaged".

Mission of Winner's

The mission statement includes "are a team with enthusiasm and dedication to focus on quality and innovation to provide a unique shopping experience".

Background of the problem

Quality is the key element that every organization is focusing on since much emphasis is being laid on quality by customers. Quality is definitely associated with consistency. Once a person is happy with the first buying experience, he/she would want to go through the same happiness each and every time. Thus, quality should be 'this time', 'next time' and 'every time' to be able to preserve and get customers. Nowadays, the idea of quality is the leading concern of every group since quality is often associated with the reputation of the business. Top quality service will eventually help in creating a good image of the firm and achieve competitive muscles to cope with rivals on the marketplace.

Mauritius has been cited as an example for the southern African of any economy due to its successful tourism destination (World Loan company, 1992; Hwedi, 2001). The introduction of the tourism sector has indeed added significantly to the GDP of the country but yet its future development has now been doubted due to the current financial meltdown which is affecting the entire world. Thus, to stay in business, quality service should be thought to be the most important aspect in the service industry. Satisfied customers become dedicated customers as there is certainly high probability that they will re-purchase the service in the foreseeable future. Thus, organizations should purpose at quality in standards directly into reap high profitability.

Problem Statement

Research Objectives

The Management of Winner's Supermarkets is placing much effort to attract and sustain customers. Management feels that customers' views are crucial to enhance the level of service being offered. Ultimately, the purpose of this study is analyses the efforts of service quality in pushing repeat buys and building customer commitment by understanding customer's targets and perceptions.

The following are the specific targets of the study:

To explain the main causes of poor service quality

To analysis the proportions of service quality the customers value the most

To explore the anticipations and perceptions of customers on the assistance on offer.

To determine the level of client satisfaction through the Space analysis

To examine the impact of service quality on customer satisfaction

Research Questions

What are the key causes of poor service quality?

What will be the proportions of service quality appreciated by customers?

What are the customers' objectives and perceptions in regards to to the services offered?

How to look for the level of client satisfaction?

To what degree service quality can effect on customer satisfaction?

Aim of study

The main goal of this analysis is to give attention to the relationship between the supermarket and the customers. More specifically, this research aims at deciding to what extent customers are satisfied with the level of service being proposed by conducting the difference analysis and what can be done to increase the current quality of service at Winner's Supermarkets to be able to gain customer commitment and create a strong goodwill on the market.

http://www. scribd. com/doc/61909918/7/A-STUDY-ON-MEASURING-SERVICE-QUALITY-IN-SUPERMARKET

Introduction

Driven by fierce competition on the marketplace, supermarkets are constantly preventing for greater profitability and survival. Customers have, nowadays, become more obsessed about quality service. Thus, quality service is pivotal not limited to service organisations also for manufacturing firms (Rust et al. , 1995) and regarding to Oliver et al. (1997) "every company must provide services". Thus, businesses that produce and deliver quality service can easily gain strong position on the market.

In addition, Parasuraman, Berry and Zeithaml (1991) believed that customers' objectives are necessary if a company wishes to deliver quality services. Thus, it's important to meet or go over these expectations to be able to gain client satisfaction which will ultimately derive higher profit margin. In addition, Macaulay and Cook, (1994) argued that to be successful, firms not just need to entice customers but also need to hold on to them. "A 2% increase in retaining customers jobs the same effect on profits as cutting costs by 10%" (Kotelikov, 2008).

Definition of Service

When referring to 'service', intangible products are being connected somewhat than tangible products. Lockyer, K. , (1986) argued that services differ from products in various ways. So, service is viewed as an experience as the buyer does not acquire the exclusive ownership compared when purchasing an item. Furthermore, services are recognized from goods scheduled to various characteristics which includes: intangibility (they can not be touched, seen or felt), inseparability (they can not be separated from the service provider), perishability (they cannot be stored) and heterogeneity credited to different customers' perceptions (Parasuraman et al. 1985; Edgett and Parkinson, 1993).

Services are operations, not things. Regarding to Religious Gr¶nroos, (2001), "something firm does not have any products, only interactive steps". Hence, service is a process whereby creation and use occurs at the same time and the customer participates in the service development process (Ghobadian, Speller and Jones, 1994). In such a substance, service can be regarded as the connections between customers and the service system which include facilities, connection with personnel, environment and equipment.

Service Quality

Today, scheduled to fierce competition, providing quality service is important to appeal to and hold on to customers. Service quality is recognized as a key component in distinguishing between organisations which in term helps to gain competitive edge (Rashid and Jusoff, 2009). Matching to Lehtinen (1983), service quality relates to "process quality" and "end result quality". The customer will determine the "process quality" throughout a service while "output quality" is being assessed after the service has been experienced by the customer.

Moreover, Parasuraman et al. , (1988) argued that customers evaluate service quality by contrasting their expectations using their perceptions while others cited that service quality is judged after contrasting performance with ideal standards (Teas, 1993) or from the identified performance only (Cronin and Taylor, 1992). Thus, it can be said that service quality is assessed only by customers and not management.

Service quality: challenges for organisation

The difficulty in describing 'service quality' lies in the type of the service itself (Voss et al, 1990; Edvardsson, 1988) and this also makes it difficult to evaluate and control (Smith, 1987; Parasuraman et al. , 1988; Dabholkar et al. , 1996; Bienstock et al. , 1997).

According to studies predicated on service quality management, companies may be paying little focus on service planning development (Edgett, 1994; Heskett et al. , 1990; Martin and Horne, 1993). The planning activities performed by organizations will determine from what extent they will be successful (Cooper et al. , 1994; de Brentani, 1995). Furthermore, the most difficult challenge is experienced by service managers as it pertains to appease disappointed customers following the service has failed. Furthermore, various authors have argued that poor quality planning by providers signifies typically 25-35 per cent of total costs (Crosby, 1979; Juran and Gryna, 1993). Others have suggested that stopping service failures are necessary to delight customers (Bank, 1992) because service recovery from a failure is actually more costly than avoiding such failing at the beginning moment in time (Georgantzas and Madu, 1994).

Under present economical conditions, many companies are aware that gratifying customers' needs is vital (Chen and Ting, 2002). Pursuing Kim (2001), gratifying customers' needs is a good practice for businesses to get competitive gain. However, many firms have realized they are unable to catch the evolving pursuits of customers. This is probably because customers' needs are never-ending and firms find it hard to meet a consumer's "every need" (Chen and Ting, 2002). In this particular essence, Coyne (1989) argued that getting together with all needs of a person is not only nearly impossible but is also "financially unrealistic".

The Growing Need for Service Quality in Supermarkets

In today's business world, supermarkets are facing strong competition (Holz-Clause and Geisler, 2007). Indeed the fierce competition on the marketplace makes supermarkets susceptible and its own success depends mainly on its ability to hold on to its customers. A lot more the supermarket is able to keep its customers, the greater profitable it will be (Reichheld and Sasser, 1990; Lovelock and Wright, 2002). As per Soriano (2002), there is absolutely no guarantee a satisfied customer will repeat visit but it is practically sure an unsatisfied customer won't come back. Moreover, Ensuring high quality of service can actually provide competitive gain more than a firm's competitors (Leonard and Sasser, 1982; Albrecht and Zemke, 1985; Bennett and Dark brown, 1989; Macaulay and Make meals, 1994).

Despite a wide choice of products provided, features such as simple shopping and a broad and comfortable area in supermarkets contributes to customer satisfaction (Jin and Kim, 2001). In addition, various service traits such as fast-service checkout lines, better lighting, convenient availability and free advice are assisting customers to tell apart between shops (Hokey Min, 2010). On this scope, service quality comes with an impact on the repurchase tendencies of both existing and prospective customers. Matching to Ghobadian, Speller and Jones (1994), the goals of quality of customers are constantly rising and their tolerance for poor service quality is lowering. Thus, customers would rather migrate to competitors that offer high service quality. Furthermore, Dabholkar et al (1996, 2000) claim that there exists a romantic relationship between retail service quality and the possibility of recommending and duplicate purchase (Bloemer et al. , 1999; Siu and Cheung, 2001).

Dimensions of Service Quality

It is essential to list down the various characteristics that are essential in assessing the grade of service. Johnston (1995) argued that determining the determinants of service quality help to evaluate, control and improve customer perceived service quality. In addition, Nordic School presumed that service quality comprises of two or three sizes. Lehtinen and Lehtinen (1985) determined three sizes:

Physical quality. Elements from the environment such as condition of creating.

Corporate quality. That is from the stable' image and profile.

Interactive quality. This identifies the interaction between personnel and customers.

Gr¶nroos (1984) also contend that "service quality" contains three measurements:

Technical quality of results. The outcome is often assessed by the client in an objective way.

Functional quality. This refers to the connections of the provider and the customer which is often viewed in a subjective manner. For instance, politeness to customers.

Corporate image. This is associated to the business's image which is usually reliant on the complex and functional quality.

Further research made by Parasuraman, Berry and Zeithaml (1985) resulted in ten sizes of service quality: trustworthiness, access, understanding the client, responsiveness, competence, courtesy, communication, credibility, security and tangibles. However, some years later, Parasuraman et al. (1988) posted evidence based on studies in five service companies which summarizes the ten above sizes into five measurements of service quality:

Tangibles - physical facilities, equipment, and the looks of staff.

Reliability - ability to realise the promised service effectively and consistently.

Responsiveness - willingness to assist customers and also to provide quick service.

Assurance - knowledge and thanks to employees and their ability to convey trust and self-confidence.

Empathy - caring and individualized focus on customers.

SERVQUAL: A Dimension of Service Quality

Measuring service quality requires the contrast of a customer's expectation prior something experience and their understanding of the actual service received (Gr¶nroos, 1982; Lewis and Booms, 1983; Parasuraman et al. , 1985).

As reviewed above, the nature of 'service' makes it difficult for companies to assess, control and examine service quality. According to Voss et al. (1990), customers constantly examine the amount of service quality after and during delivery. Hence, calculating 'service quality' can certainly helps firms to gain marketing muscles also to be pro-active (Jabnoun and Khalifa, 2005).

The SERVQUAL model is a trusted method to assess service quality. It's been founded in 1985 by Parasuraman, Berry and Zeithaml with following refinements in 1988 and 1991. The SERVQUAL model, indeed, actions the space between customers' anticipations and their perceptions using the five mentioned proportions of service quality (Tangibles, Dependability, Responsiveness, Guarantee and Empathy).

The SERVQUAL device comprises of two pieces of 22 items: the first set can determine the customer's prospects of a firm: for instance, "the firm should have a clean environment", while the other set seeks the customer's perceptions of that company: for example, "the organization has a clean environment". Positive and negative spaces in the firm's performance are accepted based on the five above mentioned sizes. The difference between your two scores (performance minus objectives) will determine the difference between the expectations and perceptions. Hence, small the gap, the deeper customer's perceptions are from targets. Additionally, Parasuraman et al. (1988) recognized the next five spaces that can result in ineffective service delivery:

Gap 1: Gap between customer expectation and management belief. Management may well not understand the customer's prospects. This may be due to lack of market research and customer emphasis.

Gap2: Difference between management's belief and service quality specs. This distance results when management does not set quality technical specs or the second option are unclear to the workers. Management should ensure that the right quality specifications are establish and executed properly.

Gap 3: Space between service quality specification and service delivery. That is triggered when the delivery of service is much less specified by the guidelines. This can be credited to poor performance of personnel.

Gap 4: Gap between service delivery and external communication. This difference results when the promises made by the firm through its communication campaigns will not meet customer's objectives. Hence, there's a disparity between what has been said in the communication or promotional activities and real service delivery.

Gap 5: Space between perceived service and delivered service. This space occurs when a number of of the above mentioned gaps appear.

The model below advised by Parasuraman et al. (1998) attempts to identify the firm's activities that will probably influence the understanding of quality. In addition, it shows the relationship between these activities that happen to be significant to produce satisfactory level of service quality. Hence, it helps management to recognize spaces between different variables affecting the level of service quality.

Figure 1: Quality Difference Analysis Model

Source: Parasuraman, A. , Zeithaml, V. A. and Berry, L. L. , "A Conceptual Style of Service Quality and its Implications for Future Research", Journal of Marketing, Vol. 49, pp. 44

. "Expectations" will be the customers' desires that they feel a service agency should offer while "perceptions" will be the customers' evaluation following the service has been received (Lim and Tang, 2000). Hence, it is crucial to understand the determinants of customer's prospects so that performance matches or exceeds targets.

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