Customer Satisfaction in Baskin Robbins - Research Paper Example

Research on Customer Satisfaction in Baskin Robbins Table of Content Executive summary……………………………………………………………………………......3 Keyword…………………………………………………………………………………………..3 Introduction……………………………………………………………………………………….3 Literature review…………………………………………………………………………………..5 Theoretical framework…………………………………………………………………………….8 Approach and methodology…..………………………………………………………………….10 Results……………………………………………………………………………………………11 Conclusion……………………………………………………………………………………….16 Research proposal………………………………………………………………………………..17 References……………………………………………………………………………………….19 Appendices………………………………………………………………………………………21 Executive Summary Baskin Robbins is a leading ice cream franchise, and it is known in U.S.A and all over the world for the products it offers to the people. The top management vividly explained what it takes to be a top franchise in the world, and they are doing their best to remain there. However, this research was carried out to test the hypothesis that customer satisfaction is influenced by employees’ services performance, accessibility or location of the shops and the conduciveness of their environment (Malhotra & Peterson 2006). Customer satisfaction was defined as a post-choice judgment made by the customer after making a particular purchase of the product on offer (Oliver 2014). After the preliminary research and some interview with the employees it was clear that the three strategies are vital at determining customer satisfaction. This hypothesis was tested through conducting interviews and questionnaires, and from the results the hypothesis was accepted. Therefore, there is a correlation between customer satisfaction and the three strategies. Key words: Customer satisfaction, service performance, Baskin Robbins, environment, shops. Introduction Brief on the Organization Baskin-Robbins is situated in Canton, Massachusetts, and it is rated globally as the biggest franchise that sells ice creams. This company is well known as a home of diverse and delicious cakes, shakes, pies, various drinks, frozen yogurt, sherbet, cones and much more ice cream flavors. This company was formed by Burt Baskin and Irv Robbins back in the year 1945. However, these two individuals (Baskin and Robbins) had passion on venturing on ice creams business. During the 35th annual franchise ranking, Baskin-Robbins was named by the United States as the leading ice cream and frozen dessert merchandise. The company has more than 1,000 different flavors of ice cream and all are being served in more than 50 countries globally. Their retail outlets are approximately more than 7,300 worldwide. Broad problem area How can Baskin-Robbins satisfy their customers’ desire? Preliminary Literature Review After the researcher’s review of the problem, the following are some of the strategies that were found and they could increase the customer’s satisfaction. 1. Designing store environment conducive to customers and the public. 2. Improving on the accessibility or locations of the shops. 3. Improving on the employees’ service performance towards the customers. Baskin-Robbins is trying its level best to provide a store environment that is conducive to both the customers and general public; however, this was part of their long-term plans in their previous budget. Moreover, quite a good number of people have been employed, and they have a favorable service performance hence the relationship with the customers would be good. Lastly, things are being put in place to improve on the accessibility of the store or the shops so that each and every customer is attended to. Preliminary Contextual Information After carrying out a face to face interview with some of the employees and the top management of the company, it is revealed that the customers are much of concern with the franchise. They are loyal, and the company has received numerous positive feedbacks from various customers globally about their products and services. Precise problem statement What are some of the strategies that Baskin-Robbins should include in their long term plans to increase their customer satisfaction? Literature Review Bowen and Chen (2001) argued that the location of particular shops often determines the decision made by the consumers in retail buying. Retailers are meant to understand the various dynamics consumers go through in making decisions whether to buy in urban or suburban areas. However, the lack of appropriate location for shopping is a source of dissatisfaction to consumers. According to Bowen and Chen (2001) various multinational companies globally are trying their level best to switch some of their strategies. Therefore instead of attracting more customers only, the companies have also indulged in retaining the already existing clients in the neighborhood. Such strategy can be implemented by promoting the customer’s loyalty. On the other hand, cumulative customer satisfaction is derived after the customer has made an overall evaluation on their total purchase and also consumption of the same product and services over a given period. According to Anselmsson (2006), one of the critical issues existing between the customers and owners of various businesses like the shopping malls is the customer’s satisfaction with the retail prices of the different products. Price is among the most vital concepts in relation to marketing, consumer research and also the general retail market. The key to most organizations achieving their goals is by determining the various needs of their target market. If the needs of the customers are on prices, then the retailers should act on it appropriately so that they do not exploit the consumers (Anselmsson, 2006). It also includes providing more effectively the desired satisfaction to the target market more than what the other competitors deliver (Anselmsson 2006). Most retailers address the needs of the consumers through engaging in-store advertising, effectively displaying the products’ prices and designing easily identifiable packages. The retail price format determines three vital performances measure that include the following: the number of customers, the trips made by the shoppers and their average spending they make per trip. Swimberghe and Wooldridge (2014) found that most quick services restaurants face difficulties in creating good customer relationship. Despite the consumers’ lack of satisfaction in the company’s brand, the quick service restaurants (QRS) still prosper giving out an impressive figure in their sales. According to this article, the number of customers who are committed to fast food brands is quite small. Moreover, more than half of fast-food customers choose a certain brand by spreading their spending over other several brands they equally prefer. On the other hand, QRS have found it difficult to achieve their goal of customer loyalty because the nature of these firms allows customers to move in and out of the restaurants in minutes. To increase the sales outcome, it is important to develop strong relationship with the customers. However, in recent research carried out, it was concluded that most firms’ performance is determined by relationship quality and least influenced by commitment (Swimberghe & Wooldridge 2014). The presence of customers plays a vital role in determining how the service performances of employees of various organizations are defined. Therefore, the consumer experience is more valuable than even the consumer goods. According to Liao and Chuang (2004), the existence of a quality interaction between the two parties is also vital in determining customer satisfaction. Moreover, customer’s perception of the quality of the services provided is enhanced by the behavior of the employees. Also, when the performance standards are based on customer expectation, then the employees are encouraged to behave in a manner that achieve desirable outcome from the customers (Servaes & Tamayo 2013) . According to this article, when employees provide high-quality services, the likelihood of customers getting satisfied is much greater and also this increases the purchase power and the frequency of their visits. According to the views from Marques, Cardoso and Palma (2013), there is increased difficulties by most firms to differentiate their products, vary the product’s prices and carrying out promotions. Therefore, these companies have engaged in differentiation through their various store environments. About this article, store environment play a significant role in increasing consumers’ satisfaction. Therefore, retailers have strategically planned the store environment to be mutually beneficial to both the customers and the owners of the firms (Marques, Cardoso & Palma 2013). One of the store environment stimuli is the lighting which not just enhances the image and evaluation but also the feeling of the products by the customer and positive purchase of the items. Therefore, attractive store with well-lit environment leads to customers visiting it more frequently and even spend more time there hence they are even convinced to make a purchase. Theoretical framework In this research the independent variables are the strategies put foreword to increase customer satisfaction and they include; 1. Designing a store environment that is conducive to attract more customers from various locations. 2. Improving on the location of the stores or shops hence easy accessibility by the customers. 3. Improving on the employees’ service performances and this will build strong relationship with the customers. The dependent variable in this research is increasing customer satisfaction while the independent variables are the strategies employed .What does customer satisfaction mean? This term can be viewed as a post-choice judgment made by the client after making a particular purchase of the product(s) on offer. Conceptual Model The relationship between the dependent variable and independent variables is positive. Therefore, designing store environment conducive to customers increases the customer satisfaction, improving on the location of the shops or stores make it easy for customers to access the facilities hence they get satisfied, and improving employees’ service performance leads to strong relationship with the customers hence they will be satisfied with the services offered. Schematic diagram Theory Customer satisfaction is affected by employees’ service performance, the store environment and the accessibility of the shops. Hypothesis 1. Designing stores environment conducive to customers influences customer satisfaction 2. Improving on employees’ service performances has a direct effect on customer satisfaction 3. Improving the accessibility or location of the store has influence on customer satisfaction Approach and Methodology Approach The research method used in this particular case is mixed method mainly because the research involves both qualitative and few of quantitative data. However, qualitative approach is dominantly used because the researcher wants to find out what contributes to customer satisfaction. The research strategy employed is hypothesis testing because the information used is based on the review of the literature. However, the type of investigation is correlation because the researcher’s aim is to find the relationship between the dependent variables and independent variables. The setting of the study is non-contrived since the research carried out is a field study and moreover, the subjects the researcher will use are found in the environment. Methodology The time horizon used is cross-sectional because the measurement of the variables is taken over a short period. The participants for this particular research comprised of Baskin-Robbins’ loyal customer, the subordinate staff and the top management. Also, the public were included through a random selection. Similarly, the unit of analysis comprised Baskin-Robbins and the customers. The data collection method used was through questionnaires. The questionnaire had two pages dully filled with questions (find a sample in the appendices). Therefore, samples of 15 participants were asked by the researcher to fill in the questionnaires. These participants were randomly selected to avoid biasness. I distributed the questionnaire to the 15 participants selected of which seven were employees of Baskin-Robbins and six were the loyal customers and the other two were the public. After the questionnaire section was over, I conducted an interview with the top management and the subordinate staff. This interview was carried out to determine the employees’ service performance, accessibility of the store or shops and the conduciveness of the store environment. The research was carried out on a weekend and during the afternoon when most the participants were free. Results There were a total of 15 participants who fully participated filled the questionnaires. Gender balance was also considered and from the sample population there were 7 male and 8 female participants. Discussion on store environment The first question on the questionnaire asked, do you find Baskin-Robbins shops attractive? From that question, 23.78% of the participants chose no while 76.22% chose yes. Baskin-Robbins is a leading ice cream franchise in the United States of America and the world as a whole. Its environment is much conducive to the customers to shop around. Therefore, from the results of the research, it is clear that most customers are satisfied with the environmental conditions of the enterprise. The second question asked”Which of the shops do you find attractive to buy from?” This question had three options to choose from; shops in urban area, suburb area or both. The results given were convincing and this show clearly that all Baskin-Robbins shops are of quality and conducive to every person. From the second question, 21.4% chose shops in urban areas, 16.5% chose shops in suburb areas while the majority who are 62.1% chose both. The researcher’s results from these two questions imply that all Baskin-Robbins shops have environment conducive to their customers. Discussion on employees’ service performance The third question in the questionnaire was “What are your feelings towards the kind of services offered by Baskin-Robbins?” The options to choose from ranged from worse to excellent. The results depicted some relationship between employees’ service performance and customer satisfaction. Therefore, the results were as follows; few of the participants chose worse (10.67%) with the majority choosing good (70.1%), and the others chose excellent (19.23%). The fourth question which still revolved around the services performances was “Do you think the management of Baskin-Robbins has done enough to improve employees’ service performances?” This question also had some option to choose from, and the first option was yes and the other one was a no. The results were not quite convincing as the others, and this clearly show that Baskin-Robbins need to emphasize and put strategies in place to improve on service performance. The results were as follows, 35% of the participants chose yes, 60% chose no and 5% were undecided. The results speak for themselves and for Baskin-Robbins to continue attracting more customers; much must be done on service performance. The real world does not have a management that is perfect at providing such services, but at least they can do their best. These results also show that the management has not done its best to ensure that the performances of the employees are equally good to the customers. Discussion on accessibility and location of the shops The questions that followed that is question five and six concentrated on the accessibility and locations of Baskin-Robbins shops all over. The convenience of the customers to the shops was the main item being looked at. The fifth question asked “do you find the location of Baskin-Robbins shops easily accessible?” this question also had two options for the sampled participants to choose from. From the results, 74.64% of the participants chose yes while 26.36 chose no. Baskin-Robbins is a large franchise and it is known all over the world. Therefore, from the results, it is clear that the large number of Baskin-Robbins’ retail outlets make it possible for the customers to access the facilities. The results also go hand in hand with our hypothesis that improving on the accessibility to Baskin-Robbins’ retail outlets will in turn increase customer satisfaction since they will be able to access the facilities more easily when they are in need. The sixth question asked, “In your opinion would you recommend for Baskin-Robbins to increase the number of retail outlets?” There were two options to choose from; it was either a yes or a no answer. The researcher asked this question to try and find out if the customers are not yet satisfied with the number of retail outlets already in existence. From the results 84.82% of the participants agreed they will recommend, 10% did not agree and 5.18% were undecided. Customers are loyal and convinced with Baskin-Robbins therefore, they would like more retail outlets at their disposal. The seventh question asked, “What is your view on increasing customer satisfaction in regards to Baskin-Robbins? 6.45% chose through providing environment conducive to customers, 15.55% chose by regulating prices, 9% chose by improving the services offered and 69% chose all of the above. This was the last question and from the results gathered, it is clear that the hypothesis is accepted and the strategies recommended would increase customer satisfaction. Interview results The researcher carried out an interview with the top management, a research expert and two subordinate staff so that they could give their opinion regarding ways to increase customer satisfaction. 1. Do you feel motivated to work in the shops’ environment? 54% think they are motivated, and the environment is conducive to them. 40% believe they are not motivated with the environment, and some things need to be changed. 6% are undecided on their feeling on the working environment. 2. What is your opinion on the prices of the products you offer? 60% believed the prices are customer friendly. 40% felt the prices are exploitative to the customers and need to be standardized to satisfy each and every customer. 3. Are you satisfied with the management of this company? 30% think they are happy with the management and the working conditions. 70% believed the management is not good and it needs some changes. 4. What is your opinion regarding the frequency of customers visiting your shops in the last three months? 78.2% believed more customers have visited their shops in the last three months compared to other months. This shows that they are satisfied with their products and services offered. 11.8% believed that the frequency of customers visiting their shops has not changed in the last three months. 10% thought that in the last three months, the number of customers who have visited their shops has drastically reduced. 5. Do you frequently receive complains from your customers? 99.1% believed they have received more complaints from various customers regarding different issues. 0.9% believed they do not know if customers actually complain to the management. 6. Do you think the management should introduce more policies in this company? 75% believed the policies that are already in existence are enough, and there is no need for other policies. 25% believed that the management should put more policies in place for the beneficial of every one. The above strategies have vividly defined that they are vital to customers’ satisfaction. Therefore, after reviewing the literature, the researcher concluded that for Baskin-Robbins to attract more customers the above strategies need to be implemented. Conclusion Customer satisfaction is a vital issue for a business to prosper (Luo & Bhattacharya 2006). Many enterprises and companies worldwide have failed just because they do not satisfy their customers’ wants. Customer satisfaction can be defined as how customers perceive the goods or services offered to them after making the actual purchase and their feedback on the products or service in question. The management of Baskin-Robbins needs to act appropriately on the strategies to increase customer satisfaction. From the research carried out, Baskin-Robbins finds it much difficult to fully satisfy its customer. However, Baskin-Robbins has found out some of the solution to customer satisfaction and they include; designing shops environment conducive enough to their customers, improving on their staffs’ service performances, regulating their prices to accommodate every customer and to make their shops easily accessible to their customers. After completing the research it is clear that the above strategies will actually help Baskin-Robbins to increase its customer satisfaction. Therefore, it would be good for the company to implement those strategies by laying out well defined procedures and follow them accordingly (Gustafsson, Johnson & Roos 2005). Various limitations may exist in any research carried out but in my research there were few limitations. Some of the questions were found to be technical by the respondents because of their format and this resulted to a few questions being incorrectly handled. Also, some respondents were unwilling to participate because of their privacy and the researcher was forced to convince them. The other limitation encountered during the research concerned the oversea customers. The oversea customers were unable to participate in the research. The future research should tackle ways to improve on the current research by coming up with various strategies that concern how to further increase customer satisfaction. The next research could be conducted some years later and it would be good to everyone if some changes are made on the current research. Research proposal The topic for this particular research is increasing customer satisfaction. For any business to grow it requires good relationship with its customers. The relationship will only grow stronger if the customers are satisfied with what they are being offered. Therefore, customer satisfaction is the key point and every management will concentrate on that to remain safe. As a prospective researcher, I would like to conduct this particular research in two months time. The total cost of the research would approximately be $10,000. This research would involve visiting Baskin-Robbins’s head office and shops to meet with the employees and the customers. It would be on a weekend during the afternoon hours when most of the people are free. The project is sponsored by the School Administration, Business Club in collaboration with Baskin-Robbins. Therefore, the research will be funded fully by the sponsors. The sponsors’ interest is to find out what Baskin-Robbins does to become a leading ice cream franchise in the world and U.S in particular. The research is about increasing customer satisfaction and when customers are satisfied, then the franchise will receive high number of customers and this will increase their sales. The project will benefit the whole community since there will be changes in the prices of products, improvement in services offered and provision of environment conducive to both the public and customer. The kind of information that would be used in this research will come from the top management of Baskin-Robbins and employees, the public and the customers. As a likely researcher, my research will be on increasing customer satisfaction; therefore, I propose a concrete research with three strategies that might influence customer satisfaction. This research will be conducted using questionnaires and interviews, and a sample of 15 randomly selected participants will be used. I consider myself as a suitable person to conduct this research because I have the skills and expertise to carry out the research, and also I am a business oriented person. Therefore, as a prospective researcher I would like to fulfill my desires of adventure in the business world. Appendices Appendix 1 Questionnaire for Baskin-Robbins Questions Tick appropriately 1. Do you find Baskin-Robbins shops attractive? Yes No 2. Which of the shops do you find attractive to buy from? Shops in urban areas Shops in suburb areas Both 3. What are your feelings towards the kind of services offered by Baskin-Robbins? Worse Good Excellent 4. Do you think the management of Baskin-Robbins has done enough to improve employees’ service performances? Yes No Undecided 5. Do you find the location of Baskin-Robbins shops easily accessible? Yes No Undecided 6. In your opinion would you recommend for Baskin-Robbins to increase the number of retail outlets? Agree Not agree Undecided 7. What is your view on increasing customer satisfaction in regards to Baskin-Robbins? Providing environment conducive to customers Regulating prices Improving the services offered All of the above Appendix 2 1. Do you find Baskin-Robbins shops attractive? 76.22% chose yes 23.78% of the participants chose no 2. Which of the shops do you find attractive to buy from? 21.4% chose urban areas 16.5% chose suburb areas 62% chose both 3. What are your feelings towards the kind of services offered by Baskin-Robbins? 10.67% chose worse 70.1% chose good 19.23% chose excellent 4. Do you think the management of Baskin-Robbins has done enough to improve employees’ service performances? 35% chose yes 60% chose no 5% chose undecided 5. Do you find the locations of Baskin-Robbins shops easily accessible? 64.64% chose yes 26.36% chose no 10% chose undecided 6. In your opinion would you recommend for Baskin-Robbins to increase the number of retail outlets? 84.82% chose agree 10% chose not agree 5.18% were undecided 7. What is your view on increasing customer satisfaction in regards to Baskin-Robbins? 6.45% chose through providing environment conducive to customers 15.55% chose by regulating prices 9% chose by improving the services offered 69% chose all of the above. References Anselmsson, J. (2006). Sources of customer satisfaction with shopping malls: a comparative study of different customer segments. International Review of Retail, Distribution and Consumer Research, 16(1), 115-138. Bowen, J. T., & Chen, S. L. (2001). The relationship between customer loyalty and customer satisfaction. International journal of contemporary hospitality management, 13(5), 213-217. Gustafsson, A., Johnson, M. D., & Roos, I. (2005). The effects of customer satisfaction, relationship commitment dimensions, and triggers on customer retention. 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Drivers of Customer Relationships in Quick-Service Restaurants: The Role of Corporate Social Responsibility. Cornell Hospitality Quarterly, 1938965513519008. Read More