Study Of Customer Service In Morrisons Marketing Essay

Understand the shopping habit of customers is the long term goal for Morrisons. The aim of the research is how Morrisons create advantage through the customer service. Analysis and evaluate Morrisons by use business models also applications. Investigate the consumers’ attitudes and perceptions to help Morrisons improve service quality and grow business. This report will also suggest Morrions for the future development and expansion.

To achieve these targets, 120 questionnaires will give to customers face to face; the survey will take place in one of Morrisons’ branches. This study would exam the importance of overall dimensions and specific elements of customer satisfaction towards the measurement of satisfaction levels. High standard service will increase customer satisfaction, meet their expectation from the company, increase sales revenue and improve service quality. In addition, lead to the customer loyalty. Compare with rival supermarkets’ performance by reviewing annual report, include market share, share price, competitors’ details, and help Morrisons raise the brand image.

This project provides advice and an opinion on mechanisms to enhance customer service in Morrisons. The purpose of work is to analyse strategy and by using lean production system to interpret how Morrisons work efficiently and benefits customers also improve performance. Lean production helps business reduce waste by use less materials, workers, time and space. (The Economist, 2009). By applying Maslow’s hierarchy needs to identify consumers satisfaction level, these theories will analysis the needs of customer in Morrisons. Porter’s five forces and generic strategies will analysis the retailer compete with other large supermarkets chains in the UK, such as Tesco, Sainsbury’s, ASDA and Waitrose. Conduct a situation reviews to advice W Morrisons PLC, examines the current marketing environment for the business, identify and analyse forces that affect an industry. Evaluate Morrisons’ performance by using SWOT analysis to identify the strength, weakness, opportunity and threats, find the solutions for business improve preform, and also increase the market share. Ansoff’s matrix theory is a decision marking tool for corporate planning and provide a useful framework for analysing a range of strategic options in relation to risks and rewards.

Company background

Morrisons was found at Bradford, West Yorkshire in 1899, by William Morrisons, a retailer of butter and egg. Son of William, Ken Morrisons was awarded a Knighthood for food retailing services in the 2000. The firm developed from market stalls to counter service, a small town shop centre was opened by the year of 1958. It was the first shop to offer self-service, also have prices on products in Bradford. (NGfL CYMRU, 2004). The first supermarket opened in 1961, named “Victoria”, converted by a cinema selling meat, grocery and others, offered free charge car park. 1967, Morrisons became a public company, over 80,000 investors tried to buy shares. After takeover of Whelan Discount stores, Morrisons has developed in Lancashire for the first time. Wakefield 41 located near the M1 motorway was the first distribution centre of Morrisons, opened in 1988. Two years later, Wakefield 41 was expanded to storage chilled and fresh food. Cheshire’s Gadbrook Park became the frozen food depot of Wakefield 41 in late 1990’s. (Morrisons, 2012). The south of England in Erith (Greater London) store was opened in October 1998. After one year, Morrisons had been founded for a 100 year, celebrated the 100th supermarket started operating at Nelson. April 2001, Morrisons joined the financial Times Stock Exchange 100 for the first time after a successful 35 year sales records and increase revenue since the firm become public in 1967. March 2004, Morrisons takeover of Safeway, become the 4th largest retailer in the UK. To serve the enlarged group, Morrisons acquires and additional fresh produce pack house and distribution centre at Thrapston in Northamptonshire. (Morrisons).since then, Morrisons has reduced over 13,000 prices down in Safeway. Sir Ken Morrisons retired after 55 years of service in 2008; The Retail Week Awards honoured him with an Outstanding Contribution to Retail. Morrisons today, over 470 stores throughout the UK, more than 300 stores have petrol station and customer cafes. 132,000 staff served 11 million customers in Morrisons every week. The revenue was £16,479 million in 2011. There are over 20,000 different products in stores (Morrisons, 2012).

Customer service and satisfaction are the most challenging task in every organization. Morrisons can measure the effectiveness of the business by the level of customer satisfaction. UK supermarket industry is an oligopoly market which dominated by a few producers and a high level of market concentration. Morrisons is the 4th largest chain supermarkets, after Tesco, Sainsbury’s and ADSA, founded at Bradford, West Yorkshire in 1899, by William Morrisons. (Morrisons, 2013)

Literature review:

The importance of customer service

What is customer service? Why is it so important for a business? Customer service is the service offer to consumer before, during and purchase products or goods (The Times 100). For example, a consumer bought a camera, the retailer charges the wrong price, and this consumer requests to refund. This is the service to dealing with consumer’s request. Constantly evaluate customer service lead to customers’ satisfaction; it is significant for businesses to achieve their goals. The result of poor quality customer service could receive more complaints and lose sales, consumers may not come back for shopping again, and they may choose different retailers. It is a long way to build long term relationship with consumers. Provide additional services for customers, offer high value and lower price than the competitors, quality control is key issues for business to grow and attract more customers, this is a good image to build the brand.

Offer the high quality of customer service by best trained staff to attract more customers shopping in Morrisons. HOT service has introduced to colleagues in all stores. Motivate staff work as a team; support each other to achieve goals. The company has own farms and factories.

People are asserts of business, through the training programme and develop their skills to create better shopping experience for customers. Motivation and investing in people prove staff service standard; include job satisfaction, work environment, security and self-achievement.

Customer satisfaction

Customer satisfaction is customer’s overall evaluation of the performance; satisfaction has a strong positive effect on customer loyalty, which is across a wide range of product and service categories (Gustafsson, Johnson and ROOS, 2005).

Satisfaction is a judgment based on either a cognitive or emotional appraisal, made by the customer whether his or her expectation were met (Oliver, 1997). “If organisations want to consider total customer experience, satisfaction by itself is a weak measurement” (Barlow and Maul, 2000, p. 112)

UK’s retail industry is a highly competitive market; retailers are intention to build customers’ loyalty by establishing a good relationship with consumers, without adequate relationship with consumer base, a retailer will be disadvantaged. To achieve this goal, provide high standard of customer service is very important for business, consumers feel valuable when they are shopping in a supermarket and regard as an old friend or a member of family. Satisfy and delight consumers which can help them become are repeat and regular buyers, in addition, attract new buyers in order to grow the business and market share. Customer satisfaction should be a most important objective in all companies and organisations.

Customer loyalty

Buttle (2004) explained that customer loyalty has two major approaches, the first one is behaviour, and the other approach is attitude. A loyal customer who is always shopping in the same brand in preference to rival companies that can be consider as substitutes. Loyalty is customers choose the favourite brand for their regular consumption, this attitude become a habit. Ajzen and Fishbein (1975) studied that attitudes have an impact on future behavioural which effect on actual behaviours. Understand attitudinal approach can help decision makers to build high levels of commitment which is take competitive advantage over competitors.

Customer satisfaction and loyalty increase in profits

Johnson and Gustafsson cited by Szwarc (2005) believe that focus on quality, customer satisfaction and loyalty, the business will be result in a positive figures that improve the financial performance. Understand what do customers need and meet their expectation, nowadays, the competition is not only focusing on price wars, various of products. The quality of service becomes major task in many organisation. The process of customer service includes 3 parts, before, during and after. Customers may unsatisfied or change the mind after purchasing, a good service has to satisfy customers’ request, then they will come back for shopping, otherwise, unsatisfied buyers would choose the different supermarkets instead previous retailer, the business would lose customers and profits. Customer service considers as business strategy, a useful tool to measure the success of business.

To reach the high level of customer satisfaction, employees must interact with customers, this interaction mostly face to face in retail industry. Employees should contribute and deliver the company’s goals in order to satisfy and loyal buyers. Employees act as important roles for grow the business and increase profits.

In this part of the research, provide key factors which impact on consumer satisfaction in supermarkets. Describe other researchers’ opinion on customer service by using the literature and also interpret the different dimensions of customer satisfaction. Review the relevant literature of business performance measurement and its relationship to achieve customer satisfaction.

Research methodology:

According to Neuman (2006), research methodology relates to a systematic way of carrying out research by using research methods to solve the research problem. There are two main research methods will be discussed in this proposal.

Quantitative and qualitative methods are the wildly used for business researches. “The general approach the researcher takes in carrying out the research project”. Research methodology descried by Ormrod and Leedy (2001).

Quantitative research connects with data collection which is typically numeric and mathematical models to analysis date. Creswell (2003) points that “employs strategies of inquiry such as experimental and surveys, and collect date on predetermined instruments that yield statistical data. By using quantitative research methodology aims to review the customer service in Morrisons.

The qualitative research method focus on interpretivism, philosophical and paradigm, this research is descriptive, subjective and exploratory (Creswell, 2007). The research of qualitative based on figures and facts that would discover fundamental impacts and consequences by statistics (Bell and Bryman, 2007).

Data collection

There are two types of methods to collect date, primary and secondary method. The primary date is collect the first hand information which other researchers have never done it before. In this study, the researcher will focus on survey method through the questionnaires to collect data of primary. By contrast, the secondary data which has been done by others, the data can be collected from Research Company’s official website, retail industry case studies, and internet.

Questionnaire design

The use of questionnaires have been carried out by many researchers in the past, it is a powerful tool when in situation where the researcher needs access to opinions of a wider community (Patton, 2002).

Ian (2008) defined that “questionnaires are written in many different ways, to be used in many different situations and with many different data- gathering media”. Questionnaire wildly used by many research projects and dissertations to collect the primary data from individuals, this is a very useful way of receive information and different points of views. A good quality of questionnaire would ensure the output of result.

Before start the design questionnaire, focuses on what kind of questions are researchers going to ask, make clear idea to achieve research goals. It should cover all research and the business objectives from questionnaire.

There are two main types of questions that researcher can ask respondents, open and closed questions. An open question gives respondent flexibility to answer all questions by their own words and opinions. For instance, “Do you think what the main reason is caused of financial crisis in the world?” a closed question provides multiple options; answers have been given to the respondent. For example, “Do you think which of the following answer caused of financial crisis cross the world?” A. Bankers, B. Politicians, C. Systems, D. Corruption. In this research, I will use both open and close questions to measure the level of customer satisfaction and collect buyers’ feedback by their own thought, make suggestions for Research Company to improve the quality of service.

It is important to consider the order of questions, because many people may not willing to complete questionnaires, so ensure most important part should write into first page of questionnaire. Embarrassing or awkward questions must be avoided; respondents may give up and unhappy to answer such questions.

Design questionnaires to collect feedback from customers, the survey will be carried out in one of store where in London. What is the buyers’ opinion? How satisfied are they? Evaluate quality of the service; has company’s service reached customers expectation? How can the business improve it? High standard service would increase customer satisfaction and loyalty.

120 samples will give to shoppers randomly in store. 14 questions designed in total, the first part represents service quality of staff, including ability, knowledge, helpful, friendly and polite. There are 5 rating ranges, Excellent, Good, Average, Fair and Poor. These questions are helpful to understand the customer service quality from the colleagues. The second part would be open questions; respondents can give advice for Research Company.

Research Ethical issues:

Saunders, Lewis and Thornhill (2009) point out that there are three rules must be concerned in all research. At first, data and information have to be correct and accurate. Secondly, protect sensitive information. Thirdly, do not show personal data or information to others.

A number of ethical issues have to be concerned as follows:

1. Informed consent: explain the purpose of research to respondents before survey take place. Respondents have to agree the terms and conditions issues.

2. Privacy: keep the research respondent anonymous; do not concern any private information and identity.

3. Ensure the respondents stay away from harm in any form, including physical, psychological and social harm.

Special Resources required:

The resources of this research include:

1. Relevant books, such as business strategy and management, porter’s competitive advantage, marketing and exploring strategy.

2. Secondary data from academic journal articles.

3. Company’s’ official website, University’s electronic libraries and Google scholar.

Timetable of main stages in dissertation:

Activity

Time to compete

Refining research questions

1 week

Questionnaires

2 weeks

Compilation of results

2 weeks

Analysis the data

2 weeks

Literature review

2 weeks

Compete the dissertation

3 weeks