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Analysis of Customer Satisfaction for the Esso Petrol Supermarkets Article Submitted by: Terence Reed Friday, 18 September

2009 Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have evolved, the need for the presence of customer satisfaction has evolved simultaneously.

Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of

business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research

The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has

undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions


Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists (Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research


The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer
This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted

only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the

research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in

the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going

through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment. While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors

contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker 1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and this could even offset any complaints toward particular products. The initial experience of a

retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992) also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as

shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability', responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous, kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions


In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The

relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time. Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a significant framework in evaluating service quality (Brown and Bond 1995). The gap model, particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997)

used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on

necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms. Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology


3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular

sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is

equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman,

1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the

quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the

manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach

branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data

provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had

to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a

SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the

perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL


The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of information available to the customer, willingness of staff to assist customers facing a query in

order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the researcher's control. In this regard, it is important to realize limitations such as these before

carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender
It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that

nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45 45 or above

Participant Percentage 19% 25% 27% 29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy and assurance in the development of service quality while seven percent of the survey participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of the survey participants considered the atmosphere of the retail outlet to be of some importance while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0

Participant Percentage 15% 10% 20%

+1 +2

25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0

Participant Percentage 7% 3% 40%

+1 +2

49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their purchases to be processed. What came as a surprise was that a staggering twenty percent of the survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet


A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase

In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 30% 13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable

importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 1% 12% 10% 24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research and development. the share of survey participants that gave the responsiveness of the retail personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the

amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the combined effect of retail store staff, available resources and customer facilitation setup available at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to

this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions
The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality.

Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied. Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data

was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been

observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends

that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers' tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most

frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences, choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction. Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of

service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research, execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have evolved, the need for the presence of customer satisfaction has evolved simultaneously.

Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the

overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research


The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using

SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions

Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists (Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research

The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer
This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the

research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to

consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment.

While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution

approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker 1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction

follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and this could even offset any complaints toward particular products. The initial experience of a retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992) also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of

customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a

behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability',

responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous, kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of

the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions

In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time. Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a significant framework in evaluating service quality (Brown and Bond 1995). The gap model, particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997)

used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on

necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms. Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology

3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the

validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many

options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman, 1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the

basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The

data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of

primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The

purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the

questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the

research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL


The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of information available to the customer, willingness of staff to assist customers facing a query in order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not

necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the researcher's control. In this regard, it is important to realize limitations such as these before carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender

It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45

Participant Percentage 19% 25% 27%

45 or above

29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer

satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy

and assurance in the development of service quality while seven percent of the survey participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of

the survey participants considered the atmosphere of the retail outlet to be of some importance while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 15% 10% 20% 25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail

outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 7% 3% 40% 49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their purchases to be processed. What came as a surprise was that a staggering twenty percent of the

survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet


A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase


In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance -2

Participant Percentage 30%

-1 0 +1 +2

13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1 0

Participant Percentage 1% 12% 10%

+1 +2

24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research and development. the share of survey participants that gave the responsiveness of the retail

personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the combined effect of retail store staff, available resources and customer facilitation setup available

at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions

The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality. Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied. Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the

research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that

the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for

granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers' tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences, choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction.

Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants

chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research, execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor

is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

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Analysis of Customer Satisfaction for the Esso Petrol Supermarkets Article Submitted by: Terence Reed Friday, 18 September 2009 Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have

evolved, the need for the presence of customer satisfaction has evolved simultaneously.

Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information

that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research


The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical

perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural

patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service

quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions


Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists (Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research


The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer
This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision

making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been

established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions

towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment. While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of

consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker 1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that

create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and this could even offset any complaints toward particular products. The initial experience of a retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992)

also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions

given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service

experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability', responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous,

kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures

and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions


In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time.

Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what

service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a

significant framework in evaluating service quality (Brown and Bond 1995). The gap model, particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997) used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer

perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms. Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology


3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying

out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was

performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman, 1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than

facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a

broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete

information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less

contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The

participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they

held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of

an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL

The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of information available to the customer, willingness of staff to assist customers facing a query in order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the

consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the researcher's control. In this regard, it is important to realize limitations such as these before carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and

material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender
It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the

consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45 45 or above

Participant Percentage 19% 25% 27% 29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it

hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy and assurance in the development of service quality while seven percent of the survey

participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of the survey participants considered the atmosphere of the retail outlet to be of some importance

while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 15% 10% 20% 25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail

outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 7% 3% 40% 49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their

purchases to be processed. What came as a surprise was that a staggering twenty percent of the survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet


A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was

unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase


In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance

Participant Percentage

-2 -1 0 +1 +2

30% 13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1

Participant Percentage 1% 12%

0 +1 +2

10% 24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research

and development. the share of survey participants that gave the responsiveness of the retail personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the

combined effect of retail store staff, available resources and customer facilitation setup available at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions
The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality. Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied. Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to

identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to

the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers' tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of

fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences, choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO

petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction. Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to

yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research,

execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have evolved, the need for the presence of customer satisfaction has evolved simultaneously. Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer

feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a

tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research


The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations

based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions


Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists

(Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research


The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer

This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating

evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment. While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing

recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker 1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and

practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and

this could even offset any complaints toward particular products. The initial experience of a retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992) also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as

shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability', responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous, kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures

and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions


In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time.

Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what

service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a significant framework in evaluating service quality (Brown and Bond 1995). The gap model,

particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997) used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows

the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The

results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms.

Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology


3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can

be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of

primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman, 1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients

of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar

elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The

deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer

satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that

special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey

participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL


The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of

information available to the customer, willingness of staff to assist customers facing a query in order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the

researcher's control. In this regard, it is important to realize limitations such as these before carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender
It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty

five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45 45 or above

Participant Percentage 19% 25% 27% 29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy and assurance in the development of service quality while seven percent of the survey participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of the survey participants considered the atmosphere of the retail outlet to be of some importance while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 15% 10% 20% 25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 7% 3% 40% 49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their purchases to be processed. What came as a surprise was that a staggering twenty percent of the survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet

A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase


In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was

observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 30% 13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to

customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 1% 12% 10% 24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty

five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research and development. the share of survey participants that gave the responsiveness of the retail personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the combined effect of retail store staff, available resources and customer facilitation setup available at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard

that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions
The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality. Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied.

Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers'

tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences,

choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction. Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not

require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was

based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research, execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

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Analysis of Customer Satisfaction for the Esso Petrol Supermarkets Article Submitted by: Terence Reed Friday, 18 September 2009 Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have evolved, the need for the presence of customer satisfaction has evolved simultaneously.

Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the

consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that

is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research


The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions


Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists

(Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research


The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer
This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the

research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in

the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of

their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment. While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy

and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker

1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and this could even offset any complaints toward particular products. The initial experience of a retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992) also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts

of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability', responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous, kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions


In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as

factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time. Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the

model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a significant framework in evaluating service quality (Brown and Bond 1995). The gap model, particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997)

used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on

necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms. Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology


3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular

sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is

equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman,

1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the

quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the

manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach

branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data

provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had

to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a

SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the

perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL


The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of information available to the customer, willingness of staff to assist customers facing a query in

order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the researcher's control. In this regard, it is important to realize limitations such as these before

carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender
It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that

nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45 45 or above

Participant Percentage 19% 25% 27% 29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy and assurance in the development of service quality while seven percent of the survey participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of the survey participants considered the atmosphere of the retail outlet to be of some importance while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0

Participant Percentage 15% 10% 20%

+1 +2

25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0

Participant Percentage 7% 3% 40%

+1 +2

49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their purchases to be processed. What came as a surprise was that a staggering twenty percent of the survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet


A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase

In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 30% 13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable

importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 1% 12% 10% 24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research and development. the share of survey participants that gave the responsiveness of the retail personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the

amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the combined effect of retail store staff, available resources and customer facilitation setup available at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to

this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions
The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality.

Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied. Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data

was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been

observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends

that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers' tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most

frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences, choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction. Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of

service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research, execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have evolved, the need for the presence of customer satisfaction has evolved simultaneously.

Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the

overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research


The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using

SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions

Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists (Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research

The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer
This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the

research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to

consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment.

While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution

approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker 1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction

follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and this could even offset any complaints toward particular products. The initial experience of a retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992) also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of

customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a

behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability',

responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous, kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of

the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions

In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time. Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a significant framework in evaluating service quality (Brown and Bond 1995). The gap model, particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997)

used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on

necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms. Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology

3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the

validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many

options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman, 1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the

basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The

data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of

primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The

purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the

questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the

research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL


The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of information available to the customer, willingness of staff to assist customers facing a query in order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not

necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the researcher's control. In this regard, it is important to realize limitations such as these before carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender

It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45

Participant Percentage 19% 25% 27%

45 or above

29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer

satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy

and assurance in the development of service quality while seven percent of the survey participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of

the survey participants considered the atmosphere of the retail outlet to be of some importance while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 15% 10% 20% 25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail

outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 7% 3% 40% 49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their purchases to be processed. What came as a surprise was that a staggering twenty percent of the

survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet


A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase


In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance -2

Participant Percentage 30%

-1 0 +1 +2

13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1 0

Participant Percentage 1% 12% 10%

+1 +2

24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research and development. the share of survey participants that gave the responsiveness of the retail

personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the combined effect of retail store staff, available resources and customer facilitation setup available

at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions

The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality. Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied. Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the

research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that

the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for

granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers' tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences, choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction.

Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants

chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research, execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor

is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

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Analysis of Customer Satisfaction for the Esso Petrol Supermarkets Article Submitted by: Terence Reed Friday, 18 September 2009 Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have

evolved, the need for the presence of customer satisfaction has evolved simultaneously.

Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information

that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research


The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical

perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural

patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service

quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions


Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists (Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research


The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer
This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision

making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been

established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions

towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment. While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of

consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker 1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that

create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and this could even offset any complaints toward particular products. The initial experience of a retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992)

also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions

given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service

experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability', responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous,

kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures

and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions


In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time.

Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what

service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a

significant framework in evaluating service quality (Brown and Bond 1995). The gap model, particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997) used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer

perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms. Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology


3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying

out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was

performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman, 1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than

facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a

broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete

information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less

contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The

participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they

held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of

an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL

The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of information available to the customer, willingness of staff to assist customers facing a query in order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the

consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the researcher's control. In this regard, it is important to realize limitations such as these before carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and

material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender
It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the

consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45 45 or above

Participant Percentage 19% 25% 27% 29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it

hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy and assurance in the development of service quality while seven percent of the survey

participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of the survey participants considered the atmosphere of the retail outlet to be of some importance

while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 15% 10% 20% 25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail

outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 7% 3% 40% 49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their

purchases to be processed. What came as a surprise was that a staggering twenty percent of the survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet


A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was

unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase


In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance

Participant Percentage

-2 -1 0 +1 +2

30% 13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1

Participant Percentage 1% 12%

0 +1 +2

10% 24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research

and development. the share of survey participants that gave the responsiveness of the retail personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the

combined effect of retail store staff, available resources and customer facilitation setup available at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions
The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality. Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied. Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to

identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to

the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers' tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of

fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences, choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO

petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction. Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to

yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research,

execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have evolved, the need for the presence of customer satisfaction has evolved simultaneously. Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer

feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a

tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research


The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations

based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions


Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists

(Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research


The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer

This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating

evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment. While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing

recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker 1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and

practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and

this could even offset any complaints toward particular products. The initial experience of a retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992) also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as

shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability', responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous, kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures

and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions


In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time.

Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what

service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a significant framework in evaluating service quality (Brown and Bond 1995). The gap model,

particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997) used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows

the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The

results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms.

Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology


3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can

be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of

primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman, 1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients

of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar

elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The

deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer

satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that

special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey

participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL


The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of

information available to the customer, willingness of staff to assist customers facing a query in order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the

researcher's control. In this regard, it is important to realize limitations such as these before carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender
It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty

five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45 45 or above

Participant Percentage 19% 25% 27% 29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy and assurance in the development of service quality while seven percent of the survey participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of the survey participants considered the atmosphere of the retail outlet to be of some importance while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 15% 10% 20% 25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 7% 3% 40% 49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their purchases to be processed. What came as a surprise was that a staggering twenty percent of the survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet

A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase


In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was

observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 30% 13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to

customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 1% 12% 10% 24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty

five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research and development. the share of survey participants that gave the responsiveness of the retail personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the combined effect of retail store staff, available resources and customer facilitation setup available at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard

that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions
The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality. Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied.

Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers'

tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences,

choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction. Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not

require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was

based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research, execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

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Analysis of Customer Satisfaction for the Esso Petrol Supermarkets Article Submitted by: Terence Reed Friday, 18 September 2009 Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have evolved, the need for the presence of customer satisfaction has evolved simultaneously.

Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the

consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that

is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research


The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions


Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists

(Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research


The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer
This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the

research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in

the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of

their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment. While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy

and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker

1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and this could even offset any complaints toward particular products. The initial experience of a retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992) also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts

of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability', responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous, kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions


In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as

factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time. Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the

model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a significant framework in evaluating service quality (Brown and Bond 1995). The gap model, particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997)

used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on

necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms. Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology


3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular

sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is

equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman,

1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the

quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the

manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach

branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data

provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had

to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a

SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the

perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL


The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of information available to the customer, willingness of staff to assist customers facing a query in

order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the researcher's control. In this regard, it is important to realize limitations such as these before

carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender
It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that

nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45 45 or above

Participant Percentage 19% 25% 27% 29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy and assurance in the development of service quality while seven percent of the survey participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of the survey participants considered the atmosphere of the retail outlet to be of some importance while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0

Participant Percentage 15% 10% 20%

+1 +2

25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0

Participant Percentage 7% 3% 40%

+1 +2

49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their purchases to be processed. What came as a surprise was that a staggering twenty percent of the survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet


A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase

In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 30% 13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable

importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 1% 12% 10% 24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research and development. the share of survey participants that gave the responsiveness of the retail personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the

amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the combined effect of retail store staff, available resources and customer facilitation setup available at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to

this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions
The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality.

Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied. Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data

was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been

observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends

that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers' tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most

frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences, choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction. Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of

service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research, execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have evolved, the need for the presence of customer satisfaction has evolved simultaneously.

Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the

overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research


The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using

SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions

Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists (Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research

The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer
This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the

research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to

consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment.

While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution

approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker 1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction

follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and this could even offset any complaints toward particular products. The initial experience of a retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992) also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of

customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a

behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability',

responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous, kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of

the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions

In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time. Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a significant framework in evaluating service quality (Brown and Bond 1995). The gap model, particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997)

used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on

necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms. Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology

3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the

validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many

options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman, 1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the

basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The

data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of

primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The

purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the

questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the

research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL


The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of information available to the customer, willingness of staff to assist customers facing a query in order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not

necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the researcher's control. In this regard, it is important to realize limitations such as these before carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender

It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45

Participant Percentage 19% 25% 27%

45 or above

29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer

satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy

and assurance in the development of service quality while seven percent of the survey participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of

the survey participants considered the atmosphere of the retail outlet to be of some importance while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 15% 10% 20% 25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail

outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 7% 3% 40% 49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their purchases to be processed. What came as a surprise was that a staggering twenty percent of the

survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet


A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase


In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance -2

Participant Percentage 30%

-1 0 +1 +2

13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1 0

Participant Percentage 1% 12% 10%

+1 +2

24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research and development. the share of survey participants that gave the responsiveness of the retail

personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the combined effect of retail store staff, available resources and customer facilitation setup available

at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions

The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality. Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied. Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the

research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that

the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for

granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers' tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences, choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction.

Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants

chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research, execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor

is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

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Analysis of Customer Satisfaction for the Esso Petrol Supermarkets Article Submitted by: Terence Reed Friday, 18 September 2009 Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have

evolved, the need for the presence of customer satisfaction has evolved simultaneously.

Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information

that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research


The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical

perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural

patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service

quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions


Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists (Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research


The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer
This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision

making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been

established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions

towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment. While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of

consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker 1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that

create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and this could even offset any complaints toward particular products. The initial experience of a retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992)

also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions

given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service

experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability', responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous,

kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures

and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions


In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time.

Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what

service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a

significant framework in evaluating service quality (Brown and Bond 1995). The gap model, particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997) used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer

perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms. Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology


3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying

out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was

performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman, 1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than

facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a

broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete

information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less

contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The

participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they

held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of

an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL

The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of information available to the customer, willingness of staff to assist customers facing a query in order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the

consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the researcher's control. In this regard, it is important to realize limitations such as these before carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and

material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender
It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the

consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45 45 or above

Participant Percentage 19% 25% 27% 29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it

hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy and assurance in the development of service quality while seven percent of the survey

participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of the survey participants considered the atmosphere of the retail outlet to be of some importance

while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 15% 10% 20% 25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail

outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 7% 3% 40% 49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their

purchases to be processed. What came as a surprise was that a staggering twenty percent of the survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet


A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was

unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase


In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance

Participant Percentage

-2 -1 0 +1 +2

30% 13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1

Participant Percentage 1% 12%

0 +1 +2

10% 24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research

and development. the share of survey participants that gave the responsiveness of the retail personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the

combined effect of retail store staff, available resources and customer facilitation setup available at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions
The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality. Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied. Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to

identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to

the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers' tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of

fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences, choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO

petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction. Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to

yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research,

execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

Modern day approaches to business execution are based heavily on customer satisfaction and those that are not based on it choose to give special regard to customer satisfaction at one or the other instance (Cochran 2003). It can therefore be surmised that as business practices have evolved, the need for the presence of customer satisfaction has evolved simultaneously. Modern day organizations go to extensive lengths to ensure that their customers are satisfied with the product and services being offered (Denton, 1991). Businesses make use of numerous different techniques to develop rapport with the customer in order to let the customers feel at liberty to provide feedback to the business about their level of satisfaction.

An example of the relevance of customer satisfaction that the businesses of today give to customer satisfaction and the role of customer satisfaction in the success of a business can be found in the fact that a separate field of study known as Customer Relationship Management has come forth for the singular purpose of ensuring customer satisfaction and making the customer

feel comfortable with the product/service being offered (Hill & Alexander 2006). CRM is based on the accumulation; analysis and utilization of information in a manner such that the consumer has the advantage of being provided products and services that incorporate the attributes that the consumer is at comfort with (Thompson 1999). Simultaneously, CRM also seeks to develop new clientele by acquiring information about potential consumers and sending them information and promotional material that is tailored to their preferences, choices, likes and dislikes.

With regard to the immense relevance that customer satisfaction has come to gain, each nature of business had begun to give relevance to customer satisfaction that is aimed at making the consumer feel comfortable in that particular organization with respect to the nature of the business (Pine & Gilmore 1999). For instance, in a shopping mall, one can expect to find shops of different nature open side by side and the staff of each shop engaged intensively in making sure that once a consumer walks in through their door, the consumer is given all the information that the consumer requires and if the consumer makes a purchase, the purchase is carried out in a manner such that the consumer is not only satisfied with the product/service but also in the overall perception that the consumer developed towards the brand.

The pivotal objective of organizations in this regard is to ensure that the quality of their service is such that the consumer has no reason to doubt it or to feel uncomfortable or unsatisfied upon making the purchase (Steingold 2008). Business now make use of service quality measurement instruments from actual product to the augmented product in order to ensure that the consumer is provided with a quality of service that the consumer becomes accustomed to and begins to give preference to (Denove & Power 2007). Once the consumer experiences a product/service quality that is unlike any other, the business can count on the fact that the consumer has developed a

tendency to return to the very same establishment (Szwarc 2005). Also, it is just as imperative to realize that the ensuring of service quality does not in any way refer to the continuous channelling of funds towards the development of the business but is an area of the business that is focused more towards the consumer (Vavra 1997). It therefore spans more than simply tangible aspects of the business with which the consumers interact.

1.2 Aims & Objectives of the Research


The aim of the research is to study consumer satisfaction in the perspective of the ESSO petrol stations that have been developed to constitute supermarkets over time. The approach adopted is one that is based on the satisfaction levels present in the consumers of the ESSO Petrol Stations. The survey questionnaire approach has been adopted in order to carry out this assessment. Simultaneously, the research also aims to develop an understanding of the theoretical perspectives applicable in the case of the ESSO Petrol Stations. It is for the same reason that the theoretical analysis tool SERVQUAL is being brought into use. The purpose of using SERVQUAL is to develop a comprehensive understanding of the actual service quality that is available at ESSO Petrol Stations and the expected service quality that consumers hold with regard to ESSO Petrol stations.

By doing so, the research aims to highlight areas of the organization that can be considered to be the cause of a decrease in the service quality being provided by the ESSO Petrol Stations. The research shall make use of the quantitative approach in order to acquire a thorough understanding of the data acquired through the survey questionnaire and shall come to a conclusion by presenting a clear and logical perspective on the subject as well as strategic recommendations

based on any weaknesses observed during the course of the study.

1.3 Rationale of the Aims & Objectives


Modern day petrol stations are increasingly opting to open up supermarkets within their vicinity. This has served to be nothing less than a revolutionary development since it has contributed significantly to the evolving trends in the retail industry. The sector of the industry that has undergone the most implications in this regard is the petrol retail sector in particular.

While previously only fuel related researches were being carried out to contribute to the success of petrol retailing, the advent of petrol station supermarkets such as those of the ESSO has served to open up a completely new horizon of research an investigation for petrol retailing. Research is now being carried out to establish the role and contribution of the behavioural patterns of consumers towards supermarket retailing at petrol stations and it is for the same reason that this research is being carried out. An underlying purpose of this research is to contribute to the study into the very same.

Fundamental variables that the research shall consider for this purpose include others along with efficiency and effectiveness of business strategy, and the measurement of consumer satisfaction.

1.4 Project Aim


The study shall seek to determine the role of customer satisfaction in the case of evolving retail trends. In this regard, the research shall give special concern to the petrol retailing sector and recent trends that have taken place in the same.

1.5 Research Questions


The research shall attempt to answer the following research questions through the course of this study. However, it should be kept in perspective that the research shall not be limited in scope by the establishment of these questions and they shall be used as perimeters to guide the research.

1. What are the expectations that consumers hold regarding services at the ESSO Supermarkets?

2. Why and how do consumers develop expectations towards the service quality of the ESSO Supermarkets?

3. Does a difference between the consumers' expected service quality and their perceived service quality exist?

4. In which areas are ESSO Supermarkets making mistakes such that customer satisfaction levels are suffering and what are the measures that can be used to prevent the occurrence of the same?

1.6 Main terms & definitions


Customer Satisfaction

The term customer satisfaction defines a state of perception that the consumer holds regarding a product or service in which the consumer feels content with the service quality that has been provided to the consumer by the business in return for the cost of the product or service (Jacka & Keller 2009). It is considered to be a performance indicator of gross nature for the success of a business since a direct relationship between consumer satisfaction and business success exists

(Lake, Hickey, & Hickey 2001). It is for the same reason that extensive research is carried out on consumer satisfaction and businesses choose to allocate extensive resources towards the allocation of consumer satisfaction.

Service Quality

The service quality of a product or a service is the collective reflection of the tangible and intangible attributes of a product or service that is relayed to the consumer upon or during the delivery of the product or service (Brown, 1991). Generally the service quality is considered in cases where the service is of a nature such that an intangible experience for the consumer is involved.

Customer Expectations

The prospects and outlooks that a consumer holds towards a product or service with regard to the service quality of that product or service are collectively referred to as customer expectations (Barlow & Moller 1996).

1.7 Scope of the Research


The scope of the research shall be in reliance with the methods and instruments of research used in this study. Special attention has been given to carry out the research in a manner such that it contributes to the overall study of customer satisfaction in the petrol retailing sector as well as highlights the areas of the subject that merit further investigation and analysis.

1.8 Disclaimer

This research has been carried out under the complete consent of the instructor and special care has been given to ensure that copyright and plagiarism issues are given more than their due consideration throughout the study. The research incorporates primary data for which the survey questionnaire approach was used and the participants for this survey approach were contacted only once their permission to do so had been acquired.

It is imperative to highlight at this point that this research has not been designed to be exhaustive in its context and in consideration of the immense care that the researcher has taken during the course of this research, it is recommended that a similar cautious approach is adopted if any of the conclusions of recommendations presented in this research are to be used for decision making purposes. Also, this research is subjected to the condition that it shall not be re-sold, lent, hired or used in any commercial basis by way of trade or otherwise without the written consent of the instructor as well as the researcher.

1.9 Structure of Report


The report shall follow the following sequential structure:

Chapter 1: Introduction

The first chapter of the report shall constitute the preface of the study. It will serve to establish the background of the research and shall simultaneously be pivotal in the establishment of the objectives of the research as well as the aims of the project. The chapter shall determine the research questions and shall also shed light on the scope of the research.

Chapter 2: Literature Review

The literature review shall constitute analysis and elaboration of previous research studies that have been carried out and are in relation to the subject of this research. The chapter shall serve to establish standards and determine gradients of measurement for use in areas further along in the research. The chapter shall also serve to establish a sound knowledge of the numerous variables that pertain to the subject of the research.

Chapter 3: Research Methodology

Once a sound knowledge of the variables and perimeters of the subject of research has been established, the research methodology shall seek to establish the research techniques that the research shall employ. This chapter shall analyze the research methodologies available to the research and shall identify the one that is most suitable in light of a justification. Apart from establishing data sources for primary and secondary data, the chapter shall also play the key role of determining potential limitations to the research.

Chapter 4: Findings & Observations

Once the research methodology established has been implemented, the fourth chapter of the research shall present the findings encountered and shall seek to present an initial analysis of the findings in the context of the research subject. The chapter shall constitute comparisons of the findings where required and shall also constitute observations made during the course of the research study. The chapter shall play an essential role in establishing trends and tendencies in the variables being observed and shall play a key role in the development of the concluding chapter.

Chapter 5: Conclusions & Recommendations

The final chapter shall present conclusive statements on the basis of the findings of the research and shall present justified conclusions on grounds of the findings and observations presented in the previous chapter. The chapter shall also serve to put forth a set of recommendations in the context of the research objectives.

Chapter2: Literature Review


2.1 Customer Satisfaction
There is no commonly used definition of customer satisfaction and it carries a broad meaning and scope. This refers to the perceptions or opinions of customers towards product and service quality factors (Cochran, 2003; Szwarc 2005). These service quality factors include price, product features, functions and value, service atmosphere, product and service range and availability, conformity to consumer demand, responsiveness to needs, convenience to consumers, reliability of service, professional service, attitude of service providers, and extent of knowledge of service personnel (Cochran 2003). Customer satisfaction also refers to the outcome of meeting or exceeding the expectations of consumers from their experience of retail service quality (Zeithaml and Bitner 1996). If customers perceive the experience to fall short of their expectations, then they are like to be dissatisfied. It becomes important for retail companies to determine continuously customer satisfaction, since customers do not necessarily communicate their dissatisfaction to the firm. Dissatisfied customers just leave and go to other retailers (Wrennall 2000). Customer satisfaction is then a post-purchase or culminating

evaluation of the total service experience of customers (Menon and Dube 2000) and the outcome of which reflects the fulfilment or surpassing of particular expectations of customers while going through the service provision process (Lovelock et al. 2001). These conceptualisations of customer satisfaction support its subjective nature and further explain how customer opinions towards service quality come about and changes.

By considering these conceptualisations of customer satisfaction, the study considers customer satisfaction as comprised of the expectations of consumers over various aspects of the service experience and the perceptions towards the actual service experience, which should meet or exceed the expectations. There is no conflict in these conceptualisations. There is only variance on the focus on either pre or post service experience. Combining these conceptualisations provides a comprehensive explanation of customer satisfaction and its emergence.

Customer satisfaction is a key goal and significant area of investment for retail firms. Retail firms sell products but the nature of the business makes these a highly service-oriented atmosphere. In the case of retail supermarkets, these provide a largely self-service environment. While there are limitations in the encounters between supermarket personnel and customers, when compared to other service sectors, this makes it more important to ensure customer satisfaction by ensuring a positive experience from the interactive and the non-interactive service experience of customers. Building a relationship with customers remains an important strategy and retail supermarkets can do this through a continuous monitoring of the satisfaction of customers based on the elements of quality service in the supermarket retail environment (Carman, 1990). The target of monitoring customer satisfaction is to use the information in minimising areas causing dissatisfaction and preventing the incurring of costs in implementing

recovery activities from a failed service (McCollough et al. 2000). Furthermore, influencing customer satisfaction and preventing dissatisfaction occurs by using the understanding of factors contributing to customer satisfaction to develop and improve customer service. The outcomes of these improvement activities should be to deliver quality service and influence positive regard of consumers towards the retail service as high quality.

2.2 Customer Service and Service Quality


Customer service and service quality are closely related concepts underlying customer satisfaction. Customer service is all the activities done in providing a service experience to customers while service quality is the targeted outcome of the service experience. As a target, there should be congruence between expectations and the actual experience to ensure customer satisfaction.

Customer service encompasses the entirety of the activities intended to achieve service quality in retail firms. There are two conceptualisations of customer service. The physical distribution approach describes customer service as the entirety of the ordering system; information collection, use and dissemination; and delivery to consumers (Brady and Cronin 2001). Customer service comprise activities such as ordering service, provision of information to customers, delivery of orders to consumers, and post-service support such as warranties (Tucker 1994). The marketing approach is an expansion of the physical distribution approach by adding activities done as part of sales and the means of motivating repeat purchases (Paul et al. 2009). This approach considers customer service as the outcome of monitoring the perspectives of suppliers and consumers and using the information to direct organisational strategies and

practices (Christopher, et al. 1994).

By combining these two independent but interrelated conceptualisations, customer service becomes all the retail service activities implemented in physical distribution and marketing that create customer service. These approaches need integration to support the accurate and comprehensive measurement of service quality. By determining the outcomes of all physical distribution and marketing service activities, retail firms gain a better understanding of the effectiveness or success of their customer service (Domegan 1996).

Service quality refers to two things. One is the aggregate of all the tangible and intangible aspects of the service experience encompassing the physical distribution and marketing efforts of firms. The other is the cognitive outcome after consumers process the service experience. (Brown et al., 1991) The extent of service quality depends on the existence and extent of disparity between the expectations of consumers and their opinions over the actual service quality they received (Bebko 2000). Service quality has a strong influence on customer satisfaction and customer satisfaction is a determinant of service quality. Customer satisfaction follows an upward trend and those customers who experience consistent satisfaction throughout the upward climb become loyal customers. It is important for firms not only to sustain service quality but also to enhance this as customer expectations change and increase.

The service quality in retail supermarkets depends on the overall atmosphere experience. This led to the atmospherics concept (Kotler, 1973), which provides that a key feature of service quality is the locale where products and services are purchased and consumed. The atmosphere could even comprise a stronger influence on customer satisfaction than the products bought. Atmosphere has emotional or psychological effects on consumers, by stimulating the senses, and

this could even offset any complaints toward particular products. The initial experience of a retail supermarket atmosphere could influence the probability of purchase and the totality of atmospheric experience determines repeat purchases. The concept of servicescape (Bitner, 1992) also emerged to include the role of personnel in the retail supermarket atmosphere. The physical setting is not complete without including the personnel who not only design the atmosphere but also contribute to the overall atmosphere through their attitudes and behaviour towards customers. Service quality comprises of tangible and intangible elements, all of which retail firms need to manage. The effective management of these elements requires measures.

2.3 Measuring Service Quality


Measuring quality of service determines customer satisfaction since the perception of service quality reflects the extent of satisfaction of customers. Because the nature of customer satisfaction is a subjective psychological and behavioural state (Brown et al., 1991), much care is required in measuring this quantitatively and in the processing of data. The variability of customer satisfaction also suggests care in considering the period of measuring satisfaction and the manner of interpreting results (Hillabrant 2003).

There is common agreement that measuring service quality has a positive impact on the efforts of firms to achieve and enhance customer satisfaction. Much research on customer satisfaction in service industries done in the past years identified various positive effects of measuring service quality (Heskett, 1990). Of these studies, the common direction is towards providing guidance on how managers can identify, align, measure, and manage well their goals and strategic plans in meeting customer needs to achieve customer satisfaction.

Measuring customer satisfaction quantitatively yields a number of benefits. Using service quality measures can provide firms with an understanding of customer expectations and perceptions given particular service contexts to support improvements in service quality (Parasuraman et al., 1988). Another benefit is knowledge on how to develop and maintain good relations with customers to improve sales and increase profitability (Reicheld and Sasser, 1990; Rust et al., 2000; Rust and Chung 2005). When service delivery consistently happens according to the direction of consumers (Claycomb et al. 2001) sustained customer satisfaction could lead to repeat purchases and even to buyer loyalty (Cacioppo 2000) when the firm decreases customer turnover to have a customer base that supports sustainability (Sriram et al., 1992).

Business firms should use service quality measures to improve the service experience and target enhanced customer satisfaction. This means a change in perspective by considering the service experience as extending beyond the mere exchange of money for service. This also means due prioritisation of service quality together with service delivery (Cavaness and Manoochehri 1993). Firms should also take action and make the necessary improvements since service quality is a behavioural concept that needs action for the firm to succeed in the long run (Jacobs et al., 2000; Hallowell et al. 2002).

2.4 SERVQUAL Service Quality Gap Model


Service quality measures allow firms to determine customer satisfaction based on customer perspectives (David 2006). Based on the best value approach, the measurement of service quality in retail firms should account for customer expectations and perceptions of service quality received (Wisniewski 2001). SERVQUAL model (Parasuram et al., 1985; 1988; 1991; 1994), as

shown in the figure below, is a service quality measure with extensive application. SERVQUAL measures service quality by comparing the expectations of consumers prior to the service experience with the perceptions of customers towards the service delivered (Parasuraman et al., 1985).

Source:

http://www.slideshare.net/suresh.singh/comparative-analysis-of-retail-

chains-based-on-servqual-model-presentation

Sureshchander et al. (2001) explained that the SERVQUAL instrument comprises 22 statements used to measure service quality across five dimensions, which are tangibles', reliability', responsiveness', assurance' and empathy'. Kaplan et al. (2003) explained these five dimensions as follows:

1) Tangibles - encompass the physical appearance of the sales venues, the facilities and equipment, communication tools, and personnel;

2) Reliability - is the capability of firms to fulfil the promised service in an accurate and dependable manner;

3) Responsiveness - is meeting customer needs promptly;

4) Assurance - is the conveyance of confidence and trust to consumers through courteous, kind or polite demeanour of employees (Cloninger and Oviatt 2007); and

5) Empathy - is the sensitivity of firms to the individual needs of consumers and provision of attention to these particular individual needs.

These dimensions encompass the tangible and intangible aspects of service quality to capture consumer views of their total service experience. The SERVQUAL model also explains customer expectations and customer perceptions together with the factors affecting these variables.

2.4.1 Customer Expectations


When customers avail of a service, they have initial expectations of the service experience. Customer expectations become the bases of evaluating the service experience (Parasuraman et al., 1991). Several factors influence customer expectations, as shown in the rightmost portion of the figure below, which retail firms can use to influence positive expectations from customers. These include the following:

1) Word of mouth or ideas and feedback from other customers with previous experience of the service;

2) Customer needs or individual circumstances determining the importance of a service;

3) Past experience or image of the service or related services; and

4) External or market communication from the firm such as advertisements, brochures

and oral promises from employees. (Parasuraman et al., 1991)

Source: (Gronroos, 1988)

2.4.2 Customer Perceptions


In measuring service quality, the literature provides consideration of customer perceptions. Reicheld and Sasser (1990) identified interaction, physical quality, and corporate quality as factors influencing customer perceptions. As such, the evaluation of customer perceptions towards service quality requires the focus on the delivery process as well as the outcome of service delivery. Gronroos (1982; 1988) identified two types of service quality, which are technical and functional quality, as areas for evaluation in considering customer perceptions. The relationship is shown in the leftmost portion of the figure above. These two types also encompass interaction, physical quality and corporate quality. Technical quality covers how customers received the service and the quantifiable service received such as volume and waiting time.

Functional quality encompasses how customers enjoyed the process of service delivery so there is no objective measure. Gronross (1982) also identified corporate image as a quality indicator that falls under both technical and functional quality. Corporate image refers to organisational culture, firm reputation, business name, ideology, and variety of service and relationship with customers (Solomon 1998). SERVQUAL encompasses these areas of focus.

2.5 Customer Expectations and Perceptions Gap


Wisniewski (2001) explained that SERVQUAL also explains service quality gaps or the difference between expectations and perceptions of service quality. The service quality gap, when this is negative, can help managers diagnose where to target performance improvement. A positive service quality gap reflects on how well the service quality exceeds the expectations of consumers. By considering service quality gaps, managers can review whether, they may be over supplying a particular service feature or there remains potential for resource redeployment to other untapped service quality features.

Parasuraman et al. (1985) developed a framework for measuring service quality gap shown in the model below. The gap theory explained service quality as the difference between customer expectations and their perceptions of the service experience. The framework identifies five gaps as follows:

1) Customer expectations and management perceptions gap refers to lack of alignment between what customers want and what management believes customers want;

2) Management perceptions and service specifications gap is the difference between what

service quality requires and the actual service quality;

3) Service quality specifications and delivery gap is a difference between perceived requirements of quality service and the actual requirements achieved;

4) Service delivery and external communication gap is the disparity between targeted communication needed to usher quality service and the actual communication sent to consumers; and

5) Customer expectations and perceptions of service experience gap is the inconsistency between the customer influences and impact on services and service delivery of firms (Parusuraman et al., 1985).

Source: http://athena-hi.fontys.nl/users/171765/uploads/bk3f_servqual.ppt

Of these five gaps, the fifth considers the perspective of consumers. This makes the gap a significant framework in evaluating service quality (Brown and Bond 1995). The gap model,

particularly the fifth gap explains the consumer side of service quality that reflects customer satisfaction. Investigating the fifth gap through the 22 statements in the SERVQUAL instrument would result to data on service quality and customer satisfaction.

2.6 Application of the SERVQUAL Service Quality Gap Model to Retail Supermarkets
The application of the SERVQUAL model evolved from being limited to pure service industries to its widespread application in retail industries, including retail supermarkets.

Application to pure service firms showed the usefulness of SERVQUAL. Raspollini et al. (1997) used SERVQUAL to determine the level of satisfaction of clinicians towards the blood transfusion service provided by blood banks. Clinicians comprise the customers of blood banks. The results showed varying levels of satisfaction but with more satisfied clinicians. The factors causing dissatisfaction also comprised the areas for improvement, which are clarity of procedures and forms as well as convenience to clinicians. Llosa et al. (1998) applied SERVQUAL to determine customer satisfaction in the banking sector. The results showed that the most important dimensions influencing customer satisfaction of bank clients are the tangibles and empathy. These dimensions require continuity and enhancement while the banks need to determine how to use the other dimensions to influence positive banking experience of clients. Jin (2005) used SERVQUAL in the hotel industry and found that all the dimensions of quality directly determine customer satisfaction and loyalty.

Application to industries considered as non-pure service sectors, specifically retail also shows

the function of SERVQUAL in analysing customer satisfaction. In retail service, there are different products and services, the combination or sequence of which would likely influence perceptions of service quality differently. Siu and Cheng (2001) explained that the determinants of service quality in non-retail service, such as in pure service firms, comprise the common determinants of service quality in retail environments. The measures are similar except that the application is in different service contexts. Vazquez et al. (2001) added that in the case of retail supermarkets, consumers have a different service experience because of the infusion of product factors with service features. However, since SERVQUAL model captures both intangible and tangible aspects in general terms, the measures also capture the factors influencing the retail service experience. SERVQUAL also applies to retail service.

Klemz and Boshoff (2001) used SERVQUAL to determine customer perceptions of the emotional and environmental influences in small retail firms and large one-stop retail chains. The results showed differences in customer perception. Empathy appears to be the strongest dimension of service quality for small retailers and these firms augment empathy with responsiveness. Assurance is the strongest service quality dimension for large one-stop retail chains and these firms use reliability, responsiveness and tangibles to augment customer perceptions of service quality. These show how small and large retail firms can co-exist.

Eastwood et al. (2005) used this model to assess the difference between the ideal view of consumers over a green grocer outlet and ratings of the characteristics of an actual green grocer outlet. Using this measure supported the identification by retailers of their strengths and weaknesses in identifying and meeting customer expectations and evaluating different consumer perceptions. The SERVQUAL model found use in surveying six green grocer retail outlets. The

results showed variances in the rating of consumers towards service quality with the difference apparent in the scores of the ideal group, actual group, and actual less ideal group. The gap and the factors comprising the gap inform green grocers on the areas requiring improvement and the strategies to apply for each specific store.

Bougoure and Lee (2008) applied the SERVQUAL in comparing customer perceptions of service quality in wet markets and supermarkets with Hong Kong as the research setting. SERVQUAL questionnaires were distributed through convenience selection to consumers in both the wet markets and supermarkets in three locations. The results showed that perceptions of service quality are more positive towards supermarkets relative to views towards wet markets. Vendors at wet markets need to improve on the attractiveness of their selling space and invest on necessary modern equipment to meet the expectations of consumers. Supermarkets need to continue and even further improve their service, including availability and variety of products and convenience, if they want to attract more consumers towards their stores and away from the wet markets. The service quality model could apply to retail supermarkets.

Torres-Moraga et al. (2008) used SERVQUAL to investigate the service quality of supermarkets. The results of the study indicated the multi-dimensionality of the determinants of service quality for retail supermarkets. The most significant service quality dimensions are assurance and reliability since these pose the strongest impact on customer expectations and service quality perceptions. These factors proved most useful in assessing the service quality of retail supermarkets.

Analysing customer satisfaction in retail supermarkets by measuring the service quality of customer service is important because doing so ushers a number of strategic benefits to firms.

Customer satisfaction emerges from meeting or exceeding customer expectations based on perceptions of actual service experience. The SERVQUAL model provides the dimensions of service quality and factors influencing customer expectations and customer perceptions to explain and measure customer satisfaction. This makes the model a means of analysing customer satisfaction. Previous studies employing the model in retail supermarkets support the applicability of SERVQUAL in analysing customer satisfaction in the retail supermarket service setting and showing areas for improvement in retail supermarkets.

Chapter 3: Research Methodology


3.1. Introduction
The selection of an appropriate research methodology is a highly sensitive element of the research and it is essential to establish a concrete and comprehensive research methodology before initiating the research. There are numerous research methodologies available to carry out a comprehensive and complete research (Chitnis 1998). The reason because of which numerous different research methodologies area available is because different nature of research call for a different set of standards, data acquisition, data interpretation and data analysis methods.

Once a concrete research methodology has been established, the researcher is capable of carrying out the research in a form that is adequate, structured and organized. The establishment of the research methodology serves as the establishment of a systematic route for the research that can be trusted to lead the research efforts to a productive outcome. Broadly speaking, a research can

be carried out by making use of quantitative methods, qualitative research methods and participatory methods of research (Balnaves & Caputi 2001). The reason because of which different research methodologies exist is because each research incorporates attributes that are unique and distinct to that research. Carrying out a research without considering the characteristics of a research can lead to the derivation of inaccurate results and conclusions which may render the entire research effort useless.

The research methodology adopted is generally carried out in a manner such that a particular sequence and justification is followed (Creswell 2003). The objective of this action is to ensure that the research approach being followed is one that does justice to the subject of the research. Ensuring the presence of a sequence and justification allows for a significant increase in the validity and credibility of the research.

The research methodology holds immeasurable significant for a research because the degree of authenticity that the research methodology of a research holds serves to determine the degree of authenticity that the findings of the research hold. It is imperative to realize that research in itself is a process through which man seeks knowledge of the world around him so that he can function all the more productively in it (Bajaj 2000). It is for the same reason that modern day research is subjected to extensive systematic procedures in order to ensure that it is free of errors and establishes results in an organized manner.

Fundamentally, the establishment of the research methodology incorporates the establishment of perimeters within which the research is carried out (Berg & Latin 2007). The establishment of these perimeters prior to the execution of the actual research allows the research to be carried out in a manner such that adequate primary and secondary sources are defined. The definition of

primary and secondary sources serves to evaluate resources that are available to the research and the establishment of the most appropriate methodology.

A research cannot be expected to be successful unless it follows a research methodology that has been established after a thorough analysis of the variables, characteristics and attributes of the research. Also, it is equally important to give regard to the primary and secondary data sources that are most suitable and most compatible in the case of the subject of the research. Also, it is equally imperative to determine the credibility of the sources used for primary and secondary data. The reason because of which primary and secondary data sources merit particular relevance is that the primary and secondary data sources come together to form what can be considered to be the actual content of the research. However, it is imperative to highlight that one of the many options available for a research include the use of solely primary or solely secondary data sources. However, as mentioned above, it is essential to determine the nature of the research before delving into the actual implementation of the research since an inaccurate research methodology can not only compromise the conclusions and recommendations of the research but can also serve to compromise the research process, leaving the research process stranded half way.

The following paragraphs shall attempt to present a comprehensive research methodology on the basis of a thorough analysis performed earlier in the research. The analysis for this purpose was performed in the literature review in earlier stages in the research and was essentially theoretical in light of the fact that a thorough understanding of all the concepts of the research was required in order to establish a research methodology that could be trusted to do justice to the subject of the research.

3.1.1 Quantitative Research


The quantitative approach is one that aims to derive utility from the application of statistical tools and instruments on the research and seeks to contribute to the research by scrutinizing the validity of a research hypothesis. A general approach to quantitative research is one that makes use of a sample based data analysis which is then generalized for the population (Detterman, 1985). Since the sample selected has to be subjected to generalization, a significant degree of reliance in this research approach falls on the credibility of the sample selected. A commonly used sampling method is the random sampling method which is used in areas where a generalized understanding has to be derived. Data acquisition methods in random sampling methods include those such as interviews, survey questionnaires, and the like.

The quantitative research is often brought into use in cases where a number of variables are to be analyzed and their values are to be interpreted to observe and derive behavioural characteristics, patterns and trends that exist amongst the variables. However, it is essential to understand that the quantitative approach is not one that can be brought into use in all circumstances as a generalized approach on account of certain limitations to that exist within it. Cases such as these are generally observed in scenarios where the data to be accumulated cannot be subjected to statistical instruments of analysis (Gawel 1997). In cases that deal with data elements other than facts and figures, the application of the quantitative approach becomes highly controversial since the conversion of non-quantitative data into quantitative data can compromise the originality of the data.

Similarly, the quantitative research approach falls short in providing adequate research results in cases where the data to be accumulated is of a nature such that it cannot be subjected to gradients

of measurements. In cases such as these interpreter and participant bias comes into play all the more significantly.

In areas where the research perimeters are based on variables that incorporate values that can be expressed or measured in precise numerical terms, the research approach adopted is the quantitative approach. Generally, the application of the quantitative approach also includes the implementation of statistical tools and analysis to perform comparisons between the data to establish patterns and trends in the data (Flick 2009). Generally the quantitative analysis is performed by analyzing the numerically expressed attributes of a sample. It is therefore evident that the quantitative approach is generally employed in cases where the number of variables to be measured is finite and certain.

However, it is imperative to realize that there are certain drawbacks to the quantitative approach and that the use of quantitative approach is not an all-purpose approach that can be generalized since it cannot be applied successfully in cases where the research perimeters are of an immeasurable nature such as is the case observed in opinions and statements (Goddard & Melville 2004). The use of the quantitative approach can serve a restricting role in circumstances such as these.

3.1.2 Qualitative Research


The qualitative research approach is used in circumstances where the information that has to be brought into use is unstructured and more than often without an identifiable form (Flick 2009). Qualitative approach is generally brought into use in circumstances where the achievement of the research objectives incorporates the analysis of relationships, attributes, opinions and similar

elements.

Qualitative analysis generally seeks to interpret cause-and-effect correlations between the attributes of the case in hand. Underlying facts are sought and analyzed for their relevance to the research objective (Gubrium & Holstein 2002). Qualitative analysis also seeks to determine the manner in which the attributes pertaining to the research subject have evolved over time and the form within which they are currently present.

Information such as those acquired through interviews, emails, recordings, photographs, feedback forms and videos are generally brought into use in qualitative research (Kothari 2005) (Yin 2003). Qualitative research allows for the interpretation and analysis of data elements beyond those that are rigidly based on facts and figures and seeks to establish conclusions on the basis of the relationships and reliance between the variables encountered during the research (Hatch 2002). The Qualitative research approach incorporates two research methods: The Inductive approach and the Deductive Approach.

The Inductive Approach is brought into use in circumstances where the research being carried out is one that is based on a specific area of research. Once the specific area has been subjected to analysis the interpretations and conclusions derived from the analysis are generalized upon a broader scenario (Gubrium & Holstein 2002). The inductive approach initiates by analysis which yields patterns and attributes of the research entity considered. These attributes and patterns are used to establish of a specific hypothesis which is then subjected to testing to determine whether or not it holds valid or not.

The deductive approach is used in scenarios where a top-down methodology has to be used. The

deductive approach incorporates the convergence of a broader observation into a specific understanding (Ketchen & Bergh 2004). The deductive approach initiates by the establishment of a broad theoretical framework which is then brought into use to establish a specific testable hypothesis.

The qualitative approach is generally brought into use where the research data is of an unstructured nature (Detterman, 1985). The qualitative approach is also applied in areas where the research variables incorporate no specific sequence and each research variable requires specific analysis. Associations are used more commonly in qualitative research than gradients.

Interviews, videos, emails, photographs, surveys, recordings, feedback forms and similar instruments are generally used to gather data in qualitative approaches (Kumar R. 2005). The data is very rarely compatible and is usually constituted of broad responses. As mentioned earlier, there are two forms of qualitative approach. The first is the inductive approach whole the second is the deductive approach.

3.2 Adopted Research Methodology


Before the survey questionnaire began inquiring, the survey participants were given complete information that they required about the research and were given a brief overview of the purpose and theme of the survey questionnaire. The survey participants were reassured about the use of the data that they provided and were also given the authority to have their answers withdrawn from the data accumulated if they desired. The participants were approached only once they had given their consent and were assured that the data they provided would be used for the singular purpose of research and would remain confidential at all costs.

It is of the utmost significance that a research methodology is established that is compatible with the research subject. In this regard, there are two approaches that exist: the first is the quantitative approach while the second is the qualitative approach. The qualitative approach branches out into two further approaches that are commonly referred to as the inductive approach and the deductive approach. If the selected research methodology is incompatible with the variables and elements that the research shall be analyzing, it is futile to expect the research to measure, evaluate, analyze and conclude upon the research variables and perimeters. This is because of the fact that each approach is distinct and has been formulated to cater to a particular nature of research perimeters.

The research methodology adopted for this research is one that takes on a combined utilization of primary and secondary sources to carry out a quantitative research. In this regard, primary data is of the most relevance and was acquired by making use of primary data acquisition instruments. Survey questionnaires were used as primary data acquisition instruments for the research and literature analysis was used for secondary data acquisition.

It is evident that the role of secondary data in the case of this research is one that is less contributing to the research than that of the primary data. However, it is essential to realize that the secondary data contributes to the research by providing a foundation for the research. The secondary data used will be one that provides a comprehensive understanding of the numerous attributes of the research.

3.2.1 Primary Data source: Survey Questionnaire


The questionnaire was designed to constitute a number of questions pertaining to customer

satisfaction and was based on the ideology that even though several retail outlets offer products and services they seldom give regard to offering customer services in particular to ensure customer satisfaction. The questions in the survey questionnaire were designed so that the data provided by the survey participants could be brought into use to determine the variables to which consumers are most sensitive when it comes to customer satisfaction with regard to customer service.

The survey questionnaire was designed to initiate by inquiring upon the name of the participant as well as the participants age. Once the fundamental demographic of age had been acquired for categorization purposes, the survey questionnaire inquired whether the participant, at the time of filling out the questionnaire, was making the purchase as an end user or as a distributor. The purpose of asking this question was to ascertain the position of the participant and to acquire an understanding of the fundamental change in perception that occurred in the consumer's orientation towards customer satisfaction with the change in the position of the consumer.

The questions to follow were based on the RATOR scale and the participant was provided with the knowledge that the answers would have to be given in accordance to the scale. The participants were provided with a scale of -2 to +2 for each question to select the level they considered most appropriate in their particular case. It is essential to highlight at this point that the use of the SERVQUAL scale was made to assist in the qualitative analysis that is to be performed in the study in the later stages.

The first question that pertained to the subject of research was one that sought to determine the degree of influence that the behaviour of the retail personnel had on the consumer's purchase experience and customer satisfaction in turn. The question was designed in a manner such that

special consideration was given to the responsiveness of the retail personnel.

The question to follow was one that sought to determine the role of empathy and assurance had to play in the development of the service quality that the consumer was offered. A factor that merits highlighting at this point is that the questionnaire was designed in a manner such that initial information was meant to accumulate data pertaining to customer service and the questions proceeded in a manner such that they converged upon the central theme of customer satisfaction as the participant answered the questions.

An element that is often considered to have passive implications upon the development of customer satisfaction is one that pertains to the atmosphere of the retail outlet. One of the questions in the survey questionnaire was designed such that the participants could provide data on the degree of effectiveness that the atmosphere of the retail outlet had on the quality of the service that they observed and that they were provided with. A more direct question that was designed to identify potential differences between the experienced and expected levels of customer satisfaction was one that asked the survey participants the level of satisfaction that they held with regard to the purchase that they had just made.

Another question in the survey questionnaire was one that asked the survey participants about the amount of time it took for their purchase to be processed. This question was placed in the survey questionnaire with regard to the fact that modern day consumers are extremely conscious about the amount of time it takes them to make a purchase and consider it to be an essential element of the opportunity cost of purchasing a product/service.

A question that took a broader perspective of the research subject was one that asked the survey

participants about their perception of the company whose retail outlet they were making the purchase from. Like all the questions of the survey, this question was also supplemented with a SERVQUAL based answering scale. A question that was of a slightly similar yet uniquely important genre was one that sought to inquire whether or not the survey participant would make a repeated purchase at the retail outlet if the same product or service was ever required. The question was put into place in order to assist in the determination of the difference between the expected and experienced levels of customer satisfaction. The survey questionnaire came to a conclusion with a question that tied together the questions of the questionnaire. The participant was asked to express his/her opinion on the degree of implication that service quality had on customer satisfaction.

3.2.2 Secondary Source: Literature Review


The literature review was designed to constitute analysis of peer reviewed articles from journals as well as other credible publications. The articles brought into use for this purpose were ones that either dealt directly with the subject of the research or sought to discuss the implications of an external and seemingly unrelated variable on the subject of the research.

The literature review was imperative to the research because it allowed for a thorough knowledge of the numerous encountered variables to be acquired. The secondary research was essentially meant to provide a concrete preface of sorts to the research and attempted to clarify upon the actual problem that had instigated the research. The literature review constituting the secondary research was not merely used for elaboration purposes but was also used for the purpose of extensive analysis. Attempts to carry out a thorough analysis were supported by a theoretical investigation of the research subject.

The literature review comes into play with all its relevance when it is considered in the perspective that it provides the required groundwork for the research to be carried out. It is for the same reason that the literature review in the case of this research has been brought into use while giving consideration to the fact that it is more than simply a theoretical elaboration of the variables incorporated in the research but serves to provide the necessary background and contextual information required to carry out the research. In the case of this particular research, the literature review has been brought into use in a manner such that is serves to play an essential role in the development and initiation of the research. The exploratory nature of the research causes the literature review to be considered as the prerequisite for primary research implementation and it is for the same reason that it has been designed to be compatible with the research. Specifically, the literature review in this research shall also serve as the required framework for the designing of the primary data accumulation instruments as well.

3.2.3 Application of the SERVQUAL


The RATOR is an assessment methodology that was developed in the mid 1980s. It is used specifically in the determination of service quality levels and is used commonly as a measurement instrument in research relating to customer service and customer satisfaction. In broad terms, a scenario in which SERVQUAL is being implemented is generally being tested for five factors. These five factors are tangibles, responsiveness, reliability, empathy and assurance. The general administration of SERVQUAL is carried out through survey questionnaires but it can also be brought into use in cases where an interview of sorts is called for. specifically, SERVQUAL implementation calls for the assessment of product/service attributes such as physical factors, staff appearance, staff attitude towards customer dependency, accuracy of

information available to the customer, willingness of staff to assist customers facing a query in order to encourage the development of trust as well as the degree to which the staff is willing to go to develop a productive client-retailer relationship with the client.

In essence, the SERVQUAL assists as a determinant of the difference between a consumer's expectations and the consumer's perceptions with regard to a particular product or service. It is essential to highlight at this point that there is a difference between the often confused SERVQUAL and RATOR assessment schemes. The fact of the matter is that the SERVQUAL is often considered to be the enhanced form a RATOR implementation and is considered to be a far more efficient version of the same. However, it is essential to realize that the SERVQUAL is only one of many approaches available to carry out customer service assessments and should not necessarily be considered as a complete reflection of the retail outlet's customer satisfaction standards. this is because of the fact that while the SERVQUAL gives an immense degree of regard to tangibles and intangibles that pertain to the product/service provider as well as the consumer, it does little to address and inquire upon factors such as pricing, psychology and statistics with relation to the subject of the research. In this regard, it should be acknowledged that the SERVQUAL is not a universal assessment methodology for service quality measurement and is one of the many options available to researchers when assessing service quality in a given scenario.

3.3 Reliability & Validity


When carrying out an exploratory research, it is essential to realize that one may come across numerous variables and research attributes that may not be within the perimeters of the

researcher's control. In this regard, it is important to realize limitations such as these before carrying out the research in order to save the research from falling prey to those limitations during the actual course of the research.

The survey questionnaire has been brought into use in this research and it is important to highlight that while the research questionnaire is a data acquisition research instrument that is frequently brought into use in researches incorporating primary research, it is one that comes with its own set of limitations and restrictions. One such limitation is one that is posed by sampling error which is introduced to the research when the sample for the implementation of the survey questionnaire is selected. Other aspects that can have implications on the reliability and validity of the study include those that include

Another element that is being brought into use in this research is secondary data through literature analysis. In this regard, it is essential to understand that even though the articles and material being used in the literature analysis is peer reviewed, each piece of literature used must have had limitations present at the time the research for the literature was carried out. Therefore, it is only logical to conclude that the former literature may have passive implications upon the current research as well.

3.4 Summary
The research is being carried out through a combination of primary and secondary sources and is making use of a primary data accumulation instrument to do so. This instrument is the survey questionnaire. The research shall make use of the SERVQUAL in order to carry out an approach that is centrally quantitative and aims to assist in the development of precision in the research.

Chapter 4: Data Generation, Analysis & Interpretation 4.1 Findings


4.1.1 Gender
It was observed that thirty eight percent of the survey participants were males while the remaining sixty two percent were females. This served to show that the larger part of the consumers who chose to make use of petrol station retail outlets are females and men are still to take advantage of this innovative development.

Gender Male Female

Participant Percentage 38% 62%

Table 1: Gender

4.1.2 Age
In reply to the question that sought to determine the ages of the participants, it was observed that nineteen percent of the survey participants belonged to the age brackets of eighteen to twenty

five years of age. Twenty five percent of the survey participants belonged to the age brackets of twenty six to thirty years of age while twenty seven percent of the survey participants belonged to the age brackets of thirty to forty five years of age. Also, twenty nine percent of the survey participants belonged to the age group above forty five years of age.

Age Bracket 18-25 26-30 30-45 45 or above

Participant Percentage 19% 25% 27% 29%

Table 2: Age

4.1.3 End-user/Distributor status


In reply to the question that sought to determine whether majority of the participants were end users of distributors, it was observed that the majority of the survey participants were end users. The end users comprised of a staggering eighty nine percent of the survey participants while the distributors constituted a relatively small eleven percent share of the survey participants.

Participant Type End User Distributor

Participant Percentage 89% 11%

Table 3: End-user/Distributor status

4.1.4 Responsiveness of the retail and service quality


In answer to the question that was meant to determine the consumers' perception regarding the significance of the responsiveness of retail personnel it was observed that quite a significant majority chose to give the role of responsiveness of retail personnel significance in the development of service quality. This question was asked in order to acquire an understanding of the degree of prominence that personnel and staff behaviour held in the development of customer satisfaction. Two percent of the survey participants were did not considered responsiveness of the retail personnel to be an element that influences service quality while nine percent gave it hardly any attention at all. Twenty percent of the survey participants chose to go for the presence of responsiveness of the retail personnel as a stimulator of service quality and thirty five percent considered responsiveness of the retail personnel to be an integral component of service quality development.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 9% 20% 45% 35%

Table 4: Responsiveness of the retail and service quality

4.1.5 Empathy and assurance


The survey questionnaire was also designed to inquire upon the role of the empathy and assurance in the development customer service quality and the participants were asked to rate the degree of significance they considered empathy and assurance to have in the development customer service quality. From the answers acquired from the survey results, it was observed that a vast majority of the survey participants chose to give empathy and assurance an extremely high degree of relevance when it is considered for its role in the development of service quality. Only a minor two percent of the survey participants were not concerned with the presence of empathy and assurance in the development of service quality while seven percent of the survey participants gave it minor significance. Thirteen percent of the survey participants considered empathy and assurance to be of moderate significance when considered for their contribution to service quality development and thirty seven percent of the survey participants realized empathy and assurance to be important for the development of customer service quality.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 2% 7% 13% 37% 41%

Table 5: empathy and assurance

4.1.6 Atmosphere of the retail outlet and service quality


The survey questionnaire also included a question that aimed to develop an understanding of the relevance of the atmosphere in the development of service quality. This question was made part of the survey questionnaire in light of the realization that service quality assessments cannot be considered to be complete and thorough without giving regard to the scenario within which the service is being provided.

It was observed that thirty percent of the survey participants held the highest share of the answers with their opinion of the atmosphere of the retail outlet being undeniably important. A quarter of the survey participants considered the atmosphere of the retail outlet to be of some importance while twenty percent considered the atmosphere of the retail outlet to be of only moderate importance when considered for its contribution to service quality. The smallest share of participants in this regard was that which constituted of ten percent of the survey sample and chose to give the atmosphere of the retail outlet only some regard but this observation was not as surprising as the observation which showed that fifteen percent of the survey participants chose to give no relevance at all to the atmosphere of the retail outlet.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 15% 10% 20% 25% 30%

Table 6: Atmosphere of the retail outlet and service quality

4.1.7 Level of satisfaction with the actual product/service


One of the more direct questions asked in the survey questionnaire was one that asked the survey participants about the exact level of satisfaction that they perceived to have acquired through the purchases that they make through ESSO petrol station retail outlets. An eye opening finding came in the form of the observation that only a minor one percent of the survey participants were fully satisfied with their purchases from ESSO petrol station retail outlets. Even though nearly half the survey participants were satisfied with their purchases from ESSO petrol station retail outlets, the reluctance of survey participants to consider their selves to be fully satisfied with their purchases from ESSO petrol station retail outlets is a highly crucial finding to this research. Seven percent of the survey participants were not satisfied with their purchases from ESSO petrol station retail outlets at all while one percent of the survey participants were hardly satisfied with their purchases. Forty percent of the survey participants were only moderately satisfied with their purchases.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 7% 3% 40% 49% 1%

Table 7: level of satisfaction with the actual product/service

4.1.8 Amount of time for purchase to be processed


The survey proceeded by asking a question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It was observed that only one third of the survey participants were content with the amount of time it took for their purchase to be processed. Only seventeen percent of the survey participants were fully satisfied with the amount of time it took their purchases to be processed while twelve percent of the survey participants were only moderately satisfied with the time that it took for their purchases to be processed. What came as a surprise was that a staggering twenty percent of the survey participants were not satisfied at all with the amount of time it took for their purchases to be processed.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 20% 18% 12% 33% 17%

Table 8: Amount of time for purchase to be processed

4.1.9 Satisfaction level with the retail outlet

A question that was aimed at taking a broader look at the customer satisfaction level in the survey participants was one that sought to identify the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same. Specifically, the question was designed to inquire upon the satisfaction level that the survey participants perceived themselves to posses for the retail outlet. It was observed that a staggering majority that constituted over sixty percent of the survey sample was only moderately satisfied with the retail outlet in question. The only share of participants that was fully satisfied with the retail outlet was one that constituted ten percent of the total survey sample. Three percent of the survey participants were not satisfied at all with the retail outlet while a similar percentage was unsatisfied with the retail outlet in question more generally.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 3% 3% 64% 20% 10%

Table 9: Satisfaction level with the retail outlet

4.1.10 Repeat purchase


In reply to the question that sought to identify whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed, it was

observed that the majority of the survey sample chose to show non-loyal behavioural characteristics and opted to make purchases from other retail outlets with impartiality to the one in question. Thirty percent of the survey participants were not concerned with making repeat purchase from the same retail outlet if the same product/service was ever needed while thirteen percent did not give it any regard as well. Twenty percent of the survey participants were only moderately inclined to make repeated purchases from the ESSO petrol station retail outlet in question.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 30% 13% 20% 18% 19%

Table 10: Repeat purchase

4.1.11 Service quality and Customer Satisfaction


The survey questionnaire came to a close with the question that was meant to link the above questions together while concluding the SERVQUAL assessment when the survey participants were asked about the role of service quality in the development of customer satisfaction. It was observed that over half the survey sample considered service quality to be of undeniable importance when considered for its role in the development of customer satisfaction. A quarter of the survey participants held slightly similar opinions about the relevance of service quality to

customer satisfaction. Only a minor and negligible one percent of the survey participants believed service quality to be of no relevance to customer satisfaction while ten percent considered service quality to be only moderately relevant when considered for its role in the development of customer satisfaction.

Degree of Significance -2 -1 0 +1 +2

Participant Percentage 1% 12% 10% 24% 53%

Table 11: Service quality and Customer Satisfaction

4.2 Summary of Findings


It was observed in the observations derived from the implementation of the survey questionnaire that females prefer to make use of ESSO petrol station retail outlets while the degree of preference given to ESSO petrol station retail outlets by men is relatively low. It is also evident from the results acquired from the survey questionnaire that the larger part of consumers of petrol station retail outlets is one that constitutes of end-users while a very small part is one that comprises of distributors.

With regard to age, a finding that comes as no surprise is that ESSO petrol station retail outlets are used by all age groups and are frequented by consumers belonging to the age group of forty

five and above. Use of ESSO petrol station retail outlets by consumers belonging to the age groups of twenty six to forty five appeared to be quite homogenous while the lowest yet undeniably imperative users of ESSO petrol station retail outlets were consumers who belonged to the age group of eighteen to twenty five years of age.

The role of retail outlet staff has been observed to be of an undeniable significance in this research. It is clear from the observations that the retail outlet staffs plays a role in the development of the customer service that cannot be ignored and one that merits further research and development. the share of survey participants that gave the responsiveness of the retail personnel no concern at all was of a negligibly small size while the larger part of the research survey participants appeared to be decided in their opinion about the high degree of relevance that the retail store personnel have in the development of service quality.

It is clear that modern day consumers choose to give a significant degree of regard to the presence of empathy and assurance in the development of service quality. This observation in itself justifies the channelling of resources towards research and development in the development of service quality. It is evident from the observations that there is a small part of petrol station retail store consumers who do not care for the atmosphere of the retail outlet. we can deduce therefore that this segment of consumers are ones who are concerned solely with the product or service that they wish to purchase and consider time to be of the essence. This realization also shows that consumers may be evolving in a manner where their time is of the most essential priority to them and it may become too expensive an opportunity cost when considered for the amount of time it takes to browse through a retail outlet and find the exact product/service needed.

We can observe that consumers of ESSO petrol station retail outlets are reluctant to state that they are fully satisfied with their purchases and this reluctance came as a surprise in consideration of the fact that nearly half the survey participants were satisfied with their purchases. This observation appears to be one that is related to the observation made through the answers obtained in reply to the question that sought to identify whether or not the survey participants were content with the time it took for their purchase to be processed. It is essential to note that the amount of time that it takes for a purchase to be processed comes forth as the combined effect of retail store staff, available resources and customer facilitation setup available at the retail store. The finding served to show that there is still a considerable room for improvement and development with regard to the time factor in ESSO petrol station retail outlets.

The question that sought to establish the perception that the survey participants held about the retail outlet and the satisfaction level that they held for the same served to reveal that the share of survey sample participants who were actually satisfied with the retail outlet in question is quite small. This finding can be considered to supplement the findings above that indicate an incomplete achievement of service quality goals.

The above findings can be confirmed from the finding that was observed in reply to the question that sought to establish whether or not the participant was willing to make a repeat purchase from the same retail outlet if the same product/service was ever needed. The outcome of the low level of satisfaction and contention observed in the previous questions was confirmed in the finding to this question. It is therefore clear that there is a relation between the variables that were assessed for and the survey participants did indeed give these factors actual regard. Proof of the regard

that they give to these factors can be found in the low levels of loyalty that were observed.

It was observed from the findings of the question that inquired upon the survey participants' perception of the role of service quality for the development of customer satisfaction that modern day consumers consider customer service to be an integral stimulant of customer satisfaction and choose to consider it as a preferred element during their purchase experiences.

Chapter 5: Conclusions
The research was carried out to determine the role of customer satisfaction in the development of retail outlets in ESSO petrol stations. The research initiated by developing a problem upon which to investigate after which key questions were established in order to guide the research through the course of the investigation. The research was divided into chapters in order to ensure clarity and the project aim was established along with the scope of the research. The research proceeded by delving into the literature review in consideration of the fact that the research was exploratory in essence and sought to acquire an insight into the subject of the research rather than to test a concrete set of statements or assertions.

The literature review was pivotal in its contribution to the research since it allowed the research to take on a specifically theoretical perspective towards the subject of the study. Customer satisfaction was identified and was subsequently elaborated upon with regard to service quality. Special consideration was given to modes and methods that are frequently applied to measure service quality and the SERVQUAL Service Quality Gap Model was subsequently applied.

Customer expectations were shed light upon and customer perceptions were detailed upon in a unique perspective. Once the foundations had been established, the literature review proceeded by performing an analysis of the gap between customer expectations and perceptions within the perimeters of the scenario at hand. This was ensured by applying the SERVQUAL with consideration of Retail Supermarkets.

Once a sound knowledge of the variables of the research was established, the next step was to identify the methodology that was best suited to these variables. The research methodology was identified after an in-depth analysis and evaluation of available research approaches and the adopted research methodology was outlined. The primary and secondary data sources for the research were identified before proceeding and the selection of the appropriate research methodology was justified. Also, in light of the relevance of the realization of potential and posed limitations to a research, the research methodology was evaluated for its reliability and validity before applying the research methodology.

Once the adopted research methodology had been applied, the next step was to accumulate the required data. The data was accumulated through the implementation of the survey questionnaire which was adopted as the primary data accumulation instrument. Data acquired through the implementation of the survey questionnaire was carefully categorized, presented and analyzed for its relevance. Special consideration was given to the data presentation in order to facilitate the analysis of the data in later stages. The use of the SERVQUAL scale of assessment assisted in the execution of the research and supplementation of the primary data with the secondary data was a research technique that played an undeniably important role in the research and contributed to the development of relationships between numerous different research variables.

The research was meant to play a pivotal role in the development of the reserve of knowledge that seeks to understand the rapidly evolving trends in the petrol station retail outlet genre. The research was designed to be carried out so that it could contribute to subsequent researches in the subject of research and was meant to encourage the carrying out of researches that sought to explore related field of research. It is essential to note at this point that the research was fundamentally exploratory and it is for the same reason that special attention has been given to the identification of key elements that influence customer satisfaction.

It was observed that service quality plays a highly essential role in the development of customer satisfaction. It was also observed that customer satisfaction came as a collection of factors that the consumer experienced during the purchase. In this regard, it is reasonable to bring the research to a close by establishing that customer satisfaction is of the utmost importance to a retail firm if it wishes to establish itself. It was revealed through the research that customer satisfaction has a direct relation with the tendency that consumers have to make repeated purchases of a product.

The research revealed that in cases where consumer experience high levels of customer satisfaction, they are relatively more inclined to make repeated purchases from the same establishment as compared to those consumers who did not experience similar levels of customer satisfaction. There was a high degree of difference between the survey participants who were satisfied with their overall purchase experience and those who were not. This served to prove that the presence of customer satisfaction was purely coincidental in the cases where it had been observed and there was an absence of an appropriate framework that could address customer satisfaction concerns.

In this regard, it is imperative to highlight that the need for a generalized customer satisfaction assurance approach was felt that could cater to all types of customers without running the risk of losing any potential repeated customers. We can therefore infer that the development of customer satisfaction can be credit to contribute to the development of loyalty in the consumer because of the same reasons.

The research has allowed us to conclude that consumers are extremely sensitive to factors that influence customer service and even though they choose to make purchases, there is a large area of untapped consumer loyalty that remains isolated from retail stores because of the fact that while a large number of retail stores offer products and services, they take customer service for granted and rarely take actions to address customer service in particular. In areas such as these where customer service is not addressed directly as an issue, consumers begin to make use of those retail outlets out of purely coincidental reasons and seldom tend to develop any loyalties towards the retail outlet.

However, this conclusion also leads us to surmise that if low levels of customer satisfaction derived from an absence of customer service are the leading cause for a degeneration of sorts of consumer loyalty to retail outlets, the presence of effective and efficient customer service can be trusted to encourage the development of customer satisfaction and can in turn be expected to stimulate loyalty in the consumers.

On a more conclusive note, the research served to be highly productive in establishing the trends that were fundamental to the development of customer satisfaction. The research proved that the development of customer satisfaction was an aspect of modern day retailing that was of the utmost importance and it held a deep and direct relation with the modern day consumers'

tendency to become loyal to a retail outlet. It was also observed that there customer satisfaction was related to customer service and that retail firms were faced with the challenge of realizing the differences that existed between consumer expectation and consumer experiences with regard to customer satisfaction.

From the analysis of the primary and the secondary data, it is evident that there are a number of fundamental areas that are not functioning the way they should be and require improvement. In this regard, the following paragraphs shall attempt to present a few recommendations that can be of assistance to petrol station retail outlets of the kind of ESSO in ensuring that their consumer experience customer satisfaction.

It is recommended that retail outlets that are opened in a position such that they serve as a supplement attraction for consumers are staffed with personnel that are trained to provide consumers with a pleasant experience. The personnel present at establishments such as these can contribute exponentially to the development of customer satisfaction if they are appropriately trained and outfitted to ensure customer satisfaction.

Also, another key area is that of the realization of precise consumer demand. It was observed during the carrying out of the on-site survey questionnaires that quite a few consumers were having trouble finding the exact product that they had entered the store for. It is therefore recommended that retail outlets such as these establish systems that are sensitive to consumer demand so that they can be stocked with the items that the consumers wish to purchase most frequently when making a stop at a petrol station retail outlet such as that of ESSO's.

An element of concern in this regard is that different consumers have different preferences,

choices, like and dislikes and it is therefore complicated to ensure that all consumers who enter the retail outlet leave with high levels of customer satisfaction. However, it is recommended that a customer satisfaction assurance strategy be made which can be trusted to be applicable in the larger share of cases in order to ensure that customer satisfaction levels are maintained.

The research served to show that the larger part of consumers who choose to make use of ESSO petrol station retail outlets is constituted of females and are frequented more often by mature consumers of ages forty five and above. It was revealed that the majority of these were end users while very few were distributors. As an outcome of the research that is founded in the secondary research and agreed upon by the findings of the survey questionnaire, the role of the retail outlet staff was established to be of crucial importance for the development of customer satisfaction. Not only did the larger share of the survey participants choose to give preference to more consumer-friendly retail staff but the literature review also considered the behaviour of the retail staff to be of the utmost importance.

The fact that not all consumers are concerned with the atmosphere that they encounter in retail outlets serves to prove that modern day consumers choose to opt for customer service that is more interactive rather than passive. It can also be concluded that modern day consumers are far from satisfied with the current trends in customer service and this can also be perceived as an opportunity for firms to establish their operations in a manner such that customer satisfaction systems are implemented.

Another highly imperative factor that came forth in the research was that of time. It was observed that modern day consumers consider time to be an essential element in their overall customer satisfaction experience and require that they are provided with service that does not

require them to spend more time than necessary in making a purchase. We can surmise from this understanding that customer satisfaction systems in the future shall evolve in a manner such that the process of making a purchase shall become much faster than it currently is.

Questions that were aimed at performing cross analysis measures to determine the difference between customer perception and customer experience of customer satisfaction were observed to yield relatively little differences than one would expect after having analyzed the literature present on the subject. However, it is essential to note that even though the difference was small, it was present all the same and it is for the same reason that this research has also taken the liberty of presenting a number of recommendations for further research in the paragraphs to follow. The difference was primarily found in the satisfaction levels that the survey participants chose to express when they were asked about their purchase experiences and the criteria of sorts that they established to ensure customer satisfaction for retail firms.

The research was not meant to be exhaustive but was carried with every possible precaution to ensure that the outcomes of the research did justice to the immense effort put into the research. While the immediate subject of this research may require further study and investigation it is essential to note that the research touched number of key areas that merit further research.

In this regard, one of the areas upon which further research can be carried out is that of the development of service quality. The research made frequent reference to material that was based on service quality and the immense frequency of these visits to the same justifies the position of service quality in the development of customer satisfaction. It is therefore recommended that further studies are carried out in the area of service quality while giving regard to the variables that are present in different scenarios. This particular research acquired primary data that was

based on the clientele of the ESSO petrol retail outlets. By doing so, the scope of the research was focused upon the relevance of evolving trends upon the petrol retail industry. Similar researches can be carried out for other industries as well.

Similarly, the research made extensive use of the SERVQUAL scale and even though the use of the SERVQUAL scale was justified in the scenario that was present in the case of this research, execution of research by making use of other approaches may serve to yield just as productive conclusions. It is also recommended that due regard is given to one of the most fundamental drawbacks of the SERVQUAL in the research. As mentioned earlier, the SERVQUAL presents an excellent reflection of a retail firm's standing in terms of service quality. However, as time has gone by and different theories have come forth to assess service quality, a much observed factor is one that pertains to the absence of the SERVQUAL's capabilities to perform service quality assessments through economic, psychological and statistical perspectives as an assessment methodology. in light of this drawback of the SERVQUAL approach, it is recommended that researches carried out in the future either develop an assessment methodology that is compatible with the areas that the SERVQUAL is unable to incorporate or attempt an assessment methodology that gives room to these areas of service quality and their implications on customer satisfaction in the bigger picture.

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