In an intensely competitive retail market, keeping consumers satisfied has never been more important than currently. Retailers need to understand how to satisfy their customers in order to enhance their appeal and increase consumer loyalty. Globally people’s lifestyles are changing rapidly. Advances in technology, more flexi-time of customers, and the many other social and economic changes affecting family and home life are some of the reasons why, specifically in the Fast Moving Consumer Goods (FMCG) industry, it is important to act fast to service customers. In South Africa, there is indication of strong competition between the most dominant firms’ in the FMCG market, which include Pick ‘n Pay Holdings Limited (23.8 percent), Shoprite Holdings Limited (23.8 percent), the Spar Group Limited (14.9 percent), and Woolworths Holdings Limited (9.0 percent). As a result, it is unmistakable that in order for FMCG firms to grow and survive in the constantly changing, and competitive retail environment of South Africa, they must have a clear understanding of consumer’s expectations, as well as their actual shopping experiences. As stated, service quality for retailers of FMCG is of utmost importance to their level of success and ability to successfully cater for the market’s needs. Closely linked to this, is the focus of this study, namely to investigate consumers’ perceived levels of product quality, as well as the overall level of satisfaction experienced by customers. The purpose of this analytical research project is twofold: Firstly, to empirically test the hypothetical model and the associated hypotheses (as phrased in Section 1.4) by using confirmatory statistical techniques. Secondly, based on the findings of the research, to craft appropriate retail marketing strategies within the FMCG market that are suitable for implementation to address potential mismatches (gaps) of perceived product quality and consumers’ satisfaction. By the crafting of appropriate retail strategies, the potential to develop the FMCG industry in South Africa will be enhanced. Given the purpose and nature of the research in question, a positivistic research paradigm was adopted. The utilization of a Likert seven-point scale enabled primary data to be sourced from 301 consumers’ (respondents), who shared their perceptions on the expectations and actual experiences about the product quality of FMCG in South Africa. The statistical analysis of quantitative data comprised seven distinct phases. Firstly, the data was subjected to a confirmatory factor analysis to validate the measurement model by assessing the construct (convergent, discriminant and nomological) validity of the pre-specified (predicted) factors. Secondly, the reliability (internal consistency) of the research instrument was assessed by means of Cronbach alpha reliability coefficients. This phase was followed by a multiple linear regression analyses which were used to test the impact of independent variables on the intervening variable. In order to test the second set of hypotheses (null and alternative hypotheses dealing with consumers’ expected product quality and their actual experiences) matched paired t-tests were utilized. Additionally, mean scores and relative percentage ratings on consumers’ expected and perceived product quality levels were also calculated and interpreted. Finally, bivariate linear regression analyses were used to test the third set of hypotheses (impact of consumers perceived product quality on consumers overall level of satisfaction). The findings of the multiple linear regression analyses required that the hypothetical model be reconstructed. Two variables were removed from the hypothetical model, namely, ‘South African culture’ and ‘service promises’. The findings of the matched pair t-tests show that significant statistical differences do exist between the ‘expectations’ and ‘actual experiences’ of consumers’ perceived product quality to support the hypothesis H3.A, namely: “There are no perceived differences between consumers’ expectations and their perceptions (actual experience) of product quality”. Besides the matched pair t-tests, further descriptive statistical analyses were also performed to assess the magnitude of the “gap” between expectations and actual experiences of consumers on South African FMCG product quality, such as the values for Cohen’s d and relative percentage ratings. The findings reveal that the consumers’ were not completely satisfied with their actual experiences. Three sets of conclusions and recommendations were identified for this research. Firstly, conclusions emanating from secondary sources on product quality and consumers’ satisfaction literature were provided, such as consumer satisfaction is seen more as a psychological state, which reveals an overall feeling of consumers’ purchase and consumption experience with FMCG. Secondly, the conclusions linked to the interpretation of the empirical findings revealed significant statistical differences between the expectations and perceptions (actual experiences) of consumers’ on perceived product quality. Finally, recommendations on relevant FMCG retail marketing strategies can be grouped into five domains:  To build customer-led firms which adhere to the principles of true marketing orientation where the focus is on consumers and their needs and wants.  Identify and clearly define the FMCG market in South Africa which comprises different market segments that are of great importance for the retail firms.  The decision on a proper positioning strategy entails the choice of the target market segments, which will determine where and how the FMCG firm competes and the choice of differential advantages.  Retailers should apply suitable marketing strategies to benefit optimally from their FMCG retail marketing strategies.  A sound feedback system is a necessary component in the strategic marketing plan to obtain proper feedback that would contribute to the “management by exception” principle. It further will facilitate performance evaluation of product quality and service delivery, as well as and enable corrective actions to be taken in the case of deviations from the norm.

This dissertation investigates the effects of price, brand, and store information on buyers perception of product quality and value, as well as the buyers' willingness to buy. It reviews the dissimilar paradigms developed by economists and behaviorists to explain the influence of price on consumer behavior. Hypotheses are derived from a conceptual model to posit the relationship that the extrinsic cues of information, price, brand name and store name, individually have with the constructs of perceived quality, perceived value, and willingness to buy. Additionally, the combined effects of the extrinsic cues on the three constructs are examined. The research was conducted in two phases. The first phase was necessary to determine products, price levels, brand names and store names to use in the second phase. A 5x3x3 factorial design, with a student sample was used in phase two to test the research hypotheses. Each of the three independent variables had no information treatment that allowed partial replication of past price-perceived quality studies, and examination of price, brand name, and store name main effects in many different cue combinations. Additionally, this research design allowed exploratory research of the marginal effects of combining cue information. Reliability of the measures was assessed using exploratory and confirmatory factor analysis and Cronbach's alpha. Analysis of variance, Duncans' multiple range tests, and trend analysis were used to analyze the data. In general the analysis gave good support for the hypothesized effects. The principal exception was finding only the downward sloping relationships for perceived value and willingness to buy as affected by price information. Also, there was a lack of support for the hypothesized combined cues when all the information were perceived to be low. The research results are discussed with respect to the major findings, significance to theoretical and methodological knowledge as well as marketing practice. Limitations of the research are discussed as well as directions for future research in this paradigm. / Ph. D.

The objective is to provide a better understanding of quality management, how it is used, and the contributions that it can make to an organization's profitability.