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Customer satisfaction of two market segments in Nelson Mandela Bay: a retail perspective

Retail industry in South Africa is witnessing fast growth in all cities in South Africa. Attracting customers become key to success in the increased industry competition. Keeping customers satisfied has never been more important than currently. Retailers need to know what customer needs and wants are, to be able to provide and constantly satisfy their needs. Growth in the industry is largely influenced by economic conditions. A stable economic environment allows customers to spend more, thereby increasing the value of retail trade sales. In South Africa, there is strong competition between the four major dominant firms in the retail industry, which include Pick n Pay Holdings Limited (30%), Shoprite Holdings Limited (34%), Spar Holdings Limited (24%), and Woolworths Holdings Limited (11%). For the firms to grow in South Africa, they must have a clear understanding of consumers’ needs and wants. Services rendered by retailers are of utmost importance to their level of success and ability to successfully cater for the market’s needs. The main purpose of this study is to investigate customer satisfaction of two retail stores in the Nelson Mandela Bay, namely Summerstrand and Cleary Park Pick n Pay stores. Three independent variables (employee empowerment, technology and customer relations) were identified and were tested against one dependent variable (customer satisfaction). A positivistic paradigm was used to conduct the research. The approach uses the quantitative method of research to establish the causal relationships. A null (Ho) and alternative (Ha) hypotheses were formulated in order to test relationships between variables. A five-point Likert scale enabled primary data to be sourced for 294 customers’ (respondents), who shared their customer satisfaction experience at Pick n Pay stores in the Nelson Mandela Bay. A statistical analysis of quantitative data compromised of three phases. Firstly, the data was subjected to a descriptive analysis to summarise the data. Secondly, reliability (internal consistency) for the research instrument was assessed by means of the Cronbach Alpha Reliability Coefficient. Finally, multiple linear regression analysis were used to test the hypothesis. The empirical findings show that the independent variable positively correlated with the dependent variables. This implies that a positive relationship between employee empowerment, technology, customer relations and customer satisfaction at Pick n Pay stores. Therefore, recommendations given by the researcher focused on all variables that have a relationship with customer satisfaction.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:24308
Date January 2014
CreatorsGwavu, Nontle
PublisherNelson Mandela Metropolitan University, Faculty of Business and Economic Sciences
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MTech
Formatxii, 116 leaves, pdf
RightsNelson Mandela Metropolitan University

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