Customer Satisfaction Towards Self-Checkouts at Supermarkets at Tesco - Research Paper Example

? Salford Business Information System Undergraduate Research 13 satisfaction towards self-checkouts at supermarkets and self-service trend in UK business The case of Tesco, Sainsbury and ASDA Supervisor: Reviewer: By XXX 1. Introduction Major paradigm of business is that it is inherently linked to needs and requirements of the people. In the rapid globalization, customer satisfaction has increasingly become the most critical issue within the broader context of changing social equation and trends. The various aspects like price, quality, flexibility, speed, technology and trustworthiness have emerged as vital issues that impact customer satisfaction. The customer satisfaction therefore, is hugely important for business that provides it with competitive advantage within the industry (Ennis, 2009; Arnould et al., 2004). In the technology driven era, customer has not only become more informed but also significantly influenced by the myriad applications of technology that increase efficient delivery of goals, especially in retail shopping. Indeed, the strategic changes implemented within the operations of supermarket chains like Tesco, Asda and Sainsbury have been designed to enhance the experience of shopping for the customers. The use of information technology in retail shopping is one the major elements of customer satisfaction as it positively contributes in myriad ways. The research would evaluate the extent of customer satisfaction in self-checkout and self-service in supermarkets like Tesco, Asda and Sainsbbury in UK. Tesco, Asda and Sainsbury are three largest grocery retail chains that have significant market share. According to Lawson (2012) Tesco with 30.8% of market share is till the leaders, followed by Asda (17.6%) and Saisnbury (16.4%). While Tesco and Asda were the first major retailers to introduce self-service and self-checkout in their outlets, Sainsbury has also initiated self-checkout lanes to boost customer satisfaction. Self-checkout and self-service are major constituents in shopping experience that are backed by technology. They are automated processes that help the customers to scan the product, put it bags and pay at special counters with the computer user interface without the human assistance. The special checkout lanes have therefore expedited the process of purchase and provided shoppers with unique experience to quickly shop for items that are needed and checkout without the hassle of standing on long queues on checkout lanes operated manually. This is especially become very convenient for shoppers who have been affected by the recessive economy and can ill afford to waste money on non-essential item. The self-service and self-checkout lanes have therefore increasingly become critical factors for retail shopping within supermarkets (Weijters et al., 2007). 2. Aims The main aim of the study is to evaluate the extent of customer satisfaction in using self-checkout and self-service for grocery shopping in supermarkets: Tesco, Asda and Sainsbury in UK. The automated process has been perceived as important initiatives to improve shopping experience for customers and promote their long term retention. The study would enable the supermarkets to gauge the impact of new technologies and provide them with constant motivation to improve and improvise shopping experience. 3. Objectives 3.1 To conduct comprehensive literature review on the impact of self-service and self-checkout on customer satisfaction in shopping. 3.2 Develop questionnaire for 75 shoppers, 25 each from Tesco, Asda and Sainsbury. 3.3 Develop questionnaire for 6 managers, 2 each from Tesco, Asda and Sainsbury 3.4 Prepare interview schedule for 30 shoppers, 10 each from Tesco, Asda and Sainsbury. 4. Literature review In the highly competitive environment of global economy and recessive trend, competing on capabilities has become very important aspect of business paradigms. The firms constantly need to evolve in order to meet the challenges of time. Technology hugely facilitates firms to leverage their competencies to maintain their market position. Indeed, technology has become one of the crucial drivers of change that has cascading influence on all aspects of business, including customer satisfaction and customer retention. It helps them to become more flexible and incorporate changes with ease to promote and enhance customers’ shopping experience. In the recent years, concept of self-servicing has witnessed tremendous growth across the retail industry, bringing in new expectation and flexibility in shopping (Marcelli et al., 2010; Williams, 2008; Leyshon et al., 2003). In UK, self-service in DIY activities, especially for domestic products has been in the rise because of the convenience, lower cost and as it delineates dependencies on external sources (Gurtoo et al., 2011; Mintel, 2010; Campbell, 2005). In retail industry, the concept of self-service and self-checkout was introduced by Tesco that was increasingly using creative approaches to identify new ways and mechanisms to enhance customers’ shopping experience. The social construction of the meaning of experience and customer satisfaction has developed from the basic premise of human interaction (Batterbee & Koskinen, 2005; Davis, 2003). The taxonomy of buying and shopping experience involves hordes of environmental issues and factors that influence consumer behaviour and managerial perspectives. Indeed, shopping experience, choice, spending level, speed etc. are factors that are considerably increased through self-service and self-checkout points in the supermarkets (Dabholkar & Bagozzi, 2002; Leivy & Weitz, 2001; Machleit & Eroglu, 2000). The long queues and other situational factors like crying babies, illness, exhaustion etc. have emerged as important determinants of stress that negatively impact shopping experience (Chu & Morrison, 2002). The self-checkout therefore provides shoppers with options to expedite buying and checkout process and check control their spending budget. Very often, the automated processes in self-checkout where hand held scanning devices are used to scan the product and used touch screen computers to self-checkout and RFID or radio frequency identification device or system based service which uses wireless technology to scan the products in shopping carts, speed up the checkout and increased customer satisfaction (Prater, Frazier & Reyes, 2005; Loebbecke, 2005). The various mechanisms of service innovation are designed to promote indispensable customer experience and to maximize return of the same in terms of customer retention and satisfaction. Creative initiatives and flexible approach that exploit consumer psychology are vital ingredients of business compulsions, especially in service area. The self-checkout points and self-service provide seamless experience in shopping that is not only personalized but also unique in-store experience (Nigel, 2007). Moreover, integrated customer experience that highlights satisfaction contributes to the growth in sales and higher productive outcome. Slack et al. (2004) strongly assert that operational efficiency vis-a-vis technology considerably impacts customer satisfaction. The electronic shelf labelling, wireless devices, intelligent scales, self-checkout machines, RFID etc. are technology based elements in service area which complement shopping experience. These are mechanisms that ensure customer retention and meeting customers’ changing demands and preferences with speed and efficiency (Wright, 2006; Hawkins). 5. Methodology The various approaches to research are critical imperatives to reach to a conclusion within the predefined parameters of research aims. As the research would evaluate the trend in customer satisfaction with regard to the self-checkout system and self-service, it would use qualitative methodology with elements of quantitative research (Allen, 1991). The mix approach is designed to give important insight into the various environmental factors that influence customer behaviour and level of satisfaction in shopping with technology. In the current context, qualitative research would be key tool to evaluate trends and identify drivers of influence that create unique shopping experience and give exemplary customer satisfaction. The semi-structured questionnaire and interview schedules would serve as tool to collect data from the target respondents. Efforts would be made to incorporate various macro and micro environmental factors, especially technology and relevance of self-checkout system in shopping in supermarkets. Emails would be used to collect primary data and personal contact would be used for interview schedules. Major focus would be on secondary sources like libraries, academic journals, credible websites etc. The main idea of using secondary sources is to gain insight into different perspectives on customer satisfaction and technology based tools. The qualitative research is highly pertinent to the research as it helps to understand consumer psychology and their views on various external factors that may influence their buying behaviour or their level of satisfaction in shopping. Moreover it lends credibility to research outcome because it helps to differentiate and narrow down the elements to predict defined trend. Most importantly, it helps to identify and understand the socio-psychological needs of the customers which can be exploited by the firms to gain leverage. 6. Planning Activity Days November 2012 December ‘12 January ‘13 February ‘13 March ‘13 Weeks Duration (from 07-1-2012 to 11-30-2012) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Studying self-service and self-checkout literature 7 Creating topic question 1 Research Proposal 6 Submit final proposal 3 Interim report: Aim & Objective 2 Meeting with supervisor 1 Interim report: Literature rev 28 Meeting with supervisor 1 ITR: Research Methods 13 Meeting with supervisor 1 Finishing interim report 21 Meeting supervisor 2 Correction based on supervisor’s Feedbacks 14 Print and bind 6 Final Submission 1 7. Risk analysis Nature of Risk Likelihood High/ Medium/ Low Impact High/ Medium/ Low Likelihood x Impact [Score] Actions required Changing supervisor 3 3 9 Make efforts to meet deadline Losing the final research report 3 3 9 Make more than 1 Hard and soft copy of each phase. Running out of time 3 3 9 Keep to the schedule Getting Sick 2 2 3 Try to keep ahead of schedule Power cut while using the computer 3 3 9 Save information every 10 mints. Use Salford F drive and an external storage. Bad feedback from participants 1 2 2 use different group at different time to do the questionnaires 8. Resources Books, from academic library and UK books Articles and academic journals Website, academic website, university Data from respondents from Tesco, Asda and Sainsbury Data analysis using typology Application, Microsoft word, Microsoft project and Excel Reference Allen, G. (1991). Qualitative research,Handbook for research students. London: The Falmer Press. Anderson (2007) Self-checkout system Arnould, Eric & Price, Linda & Zinkhan, George. (2004) Consumers, 2nd edition. NY: McGraw-Hill. Battarbee, K., & Koskinen, I. (2005). Co-experience: User experience as interaction. CoDesign, vol., no.1, pp. 5–18. Campbell, C. (2005), ‘The craft consumer: culture, craft and consumption in a postmodern society’ Journal of Consumer Culture, Vol. 5, No. 1, pp. 23-42. Chu, J., & Morrison, G. P. (2002) Enhancing the customer shopping experience: 2002 IBM/NRF ‘‘Store of the Future’’ survey. G510-3261-00. Somers, NY: IBM Institute for Business Value; p. 19. Davis, M. (2003). Theoretical foundations for experiential systems design. Berkeley, CA: ACM Press; pp. 45–52. Dabholkar, P. A., Thorpe, D. I., & Rentz, J. O. (1996) ‘A measure of service quality for retail stores: Scale development and validation’, Journal of the Academy of Marketing Science, vol.2, no.1, pp. 3–16. Ennis, Sean. (2009) Marketing Management, US: University of Strathclyde Business School. Gurtoo, A., Sarup, V. and Williams, C.C. (2010) ‘Explaining the do-it-yourself (DIY) retail market in a developing country: some preliminary lessons from India’, International Review of Retail, Distribution and Consumer Research, Vol. 20, No. 3, pp. 335-51. 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(2007) Customer satisfaction: the customer experience through the customers eyes, London: Cogent Publishing. Prater, E., Frazier, G. V., & Reyes, P. M. (2005) ‘ Future impacts of RFID on E-supply chains in grocery retailing. Supply Chain Management’, An International Journal, vol.10, no.2, pp. 134–142. Slack, N., Chambers, S. and Johnston, R. (2004) Operations Management, 4th edition, London: Pitman Publishing. Williams, C.C. (2008), “Rethinking the motives of do-it-yourself (DIY) consumers”, International Review of Retail, Distribution and Consumer Research, Vol. 18, No. 2, pp. 311–23. Wright,R. (2006). Consumer behaviour. London: Thomas Learning. Weijters B, Rangarajan D, Falk T, Schillewaert N (2007) ‘Determinants and outcomes of customer use of self-service technology in a retail setting’, J. Serv. Res. Vol.10, no.1, pp.3-21. Read More