The publisher will discuss about the client satisfaction and importance of customer services in this section. Client satisfaction is important in virtually any business. The author will explore the client satisfaction and services provided by Harvey Norman. Client satisfaction can be an experience by consumer and the customer's notion about the company. The study can help the company to discover the customer satisfaction and customer services provided.
Background of Study
A retail establishment which particular in offering a variety of goods without a sole predominant goods collection is call department store. Department stores normally sell products such as furniture, consumer electronics, appliances, apparel and so on. The additionally choose other lines of product including hardware, toiletries, jewellery, cosmetic makeup products, photographic equipment, toys and games, sporting goods and so on. Some department stores are even more categorised as discount shops. Discount shops have central customer checkout part normally, located in the front area of the store generally. Shops are part of a retail chain usually situated several countries. (Anon, no day)
The top 3 of the department stores in Malaysia are Carrefour, Tesco and Jusco. (www. expat. com. my)
Harvey Norman is a company offers a huge selection of consumer electrical, computers, entertainment system, communication, furniture, and bed linen product. Harvey Norman in Malaysia is working under Elitetrax Marketing Sdn Bhd. Elitetrax Marketing Sdn Bhd is held by Pertama Holdings Limited, which is an investment holding company. Harvey Norman long warranty scheme provides a complete coverage with free alternative beyond repair product. (www. harveynorman. com. my).
Current research on picked topic
A recently world of retailing created as shops got a definite market position as common providers in 1980. Department stores is a huge responsible of the standard store design nowadays because the innovation of architectural, size of creating, wine glass technology and new materials for building. In later 17th-century London, department stores rent space for personal sellers. The smaller sellers were changed by the larger company in 1990. Today, shops only leased out for special department like financial services and photography. (www. Worldlingo. com. my )
Malaysia begin to offer a whole lot of international chains, for example Carrefour, Makro, Tesco, Jusco, and so on since 1980. The foreign stores have to join ventures with the local partners. The house grown section chains include Giant, Cold Storage, Metrojaya, Parkson, Mydin etc. (Absoluteastronomy, 2011)
Department store goods are initially mass-produced goods, which are lowly produced for a strong consumer group.
Demarcation
Characteristic
Department store
Specialist shop
Assortment width
broadly (many types of commodities)
closely
Assortment depth
deeply (many articles)
means to deep
Quality
rather on the average
rather high-quality
FASHION shop EUT Marketing Sdn Bhd told that discussing with international and local team store to build up its first boutique of inspired team store. Malaysia's first boutique division store is the latest RM10 million department stores. It really is located at Subang Jaya Menara Summit shopping centre. This new office store offers a special shopping environment with trendy and warm boutique style. It provides a broad collection of affordable range of products in beauty products, sport wear, fashion, ccosmetics, shoes, cosmetic makeup products, and so on. Zurinna Raja Adam, 2007.
Research problems
Harvey Norman has some issues about the expanded warranty need too long time to repair. (Jacky, 2011)
Research objectives
To evaluate customer satisfaction towards the business service.
To identify the parameters which influencing customers satisfaction toward Harvey Norman.
To identify the service quality of the company.
To identify whether customer will repurchase product from the business.
Research questions
What is the amount of client satisfaction towards the company service?
What are the parameters with influencing customers satisfaction toward Harvey Norman?
What is the level of service quality of the business?
Will the client repurchase product from the business?
Purpose of study
The reason of chosen this subject as my research is basically because the author like to purchase in Harvey Norman and visit there often. The writer are interesting in why the business enterprise in Harvey Norman done so successful. The author tends to learn the successful of Harvey Norman.
Scope of study
In this research paper, the author will identify the customer satisfaction towards services for HP laptop provided by Harvey Norman at Mid Valley Megamall. The purpose of this research is to recognize the variables of consumer. The research began at July 2010 and you will be concluded at March 2011. In order to achieve the research objectives, the writer will distribute questionnaire to customers who walk in Harvey Norman. You will see 120 respondents selected to fill up the questionnaire during working hour. The survey will be achieved at Whole lot At-1 Lower Earth Floor Mid Valley Megamall, Mid Valley City, Lingkaran Syed Putra, 59100 Kuala Lumpur.
Significant of study
The research is to help Harvey Norman to recognize the important of customer satisfaction. Besides, the research helps to understanding the client expectation and increases their employee customer service skills. The business should serve customer well by setting goal for improve the customer support and customer satisfaction level. (Bridgette Burton, 2010) The study also really helps to identify the improvement of the business in the foreseeable future.
Chapter breakdown
Chapter 1, the writer will discuss the format of this research which is to explore client satisfaction and customer services of Harvey Norman.
Chapter 2 is the literature review that summarize the journals and studies about the customer satisfaction, services or product that done by others.
Chapter 3 is the research methodology, research target and research approach will be done.
Chapter 4 will assess about all the findings done on questionnaire.
Chapter 5 is the major learning and advice in this research. The final outcome also will be done in this section.
Chapter 2
Consumer Buying Behavior
Consumer buying tendencies identifies the buying tendencies of the final consumer, those who buy products for personal or family use rather than for business purposes. Marketers need to understand buying behaviour for reasons uknown. An organisation must examine consumer buying patterns for consumers reaction to an organisation online marketing strategy has a significant impact on the organisation success. The marketing concept stressed an organisation need generate a marketing mix to meet customers. By getting a better knowledge of the factors that have an effect on buying behavior, marketers can anticipate how customers will react to the marketing strategies. Consumers try to maintain and find an assortment of products that meet their current and future needs. William M. Satisfaction, O. C. Ferrell, p. 177
Consumer buying patterns can be grouped in four types, but basically by the degree of consumer involvement and level of perceived distinctions within brands of products. The behavioral characterizations include complicated buying habit, where consumer involvement in the buying is high and the buyer sense many essential variations within brands.
Habitual buying behavior is consumer engagement in the purchase is low and the consumer perceives little essential variations within brands. For example newspaper, sodium or sugars.
Variety- seeking buying action is consumer engagement in the purchase is low and the buyer perceives a lot of vital variations within brands, resulting in case of brand switching for the reason of experiencing variety.
Dissonance minimizing buying action is consumer involvement in the purchase is high and the buyer perceives little vital dissimilarities within brands, leading to case of individuals are obsession to shop for an infrequent or expensive purchase. (Scott G. Dacko, 2008, p. 119)
Consumer Buying Model
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Adapted from: www. emeraldinsight. com/
Factor influencing consumer behavior
Many uncontrollable factors will influence consumer behaviour. What factors will affects you before you get a good or service? Could it be your family, your friends, your culture, or affects from certain groups?
Culture is one factor that affects consumer behavior. Culture refers to our values and attitudes. Culture is the key character of any culture that distinguishes it from other world groups. The main elements of every culture will be the myths, values, customs, rituals vocabulary, and laws that form the behaviour of the individuals, as well as the material artifacts of this behaviour because they are passed from one generation to the next. (Lamb, Head of hair and McDaniel, 2009)
For a person growing up, parents are affected the youngster. Sister, brothers, and other family member also may instruct them incorrect or right. The religion and culture they learn will benefit them develop behaviour, idea and values. These will influence the buying behaviour however the other factors for example people they value and sets of friends will impact choices of buying product or service.
Social
Reference groups
Reference organizations are groups of people that have an influence on consumer behavior. Individuals who you research to because your respect their judgements are judgment leaders which could impact consumer decisions. For instance a pal who expert in IT trade may affect your choice to purchase some type of computer.
Role
Role is things that you must do predicated on the prospects of you from your situation within an organization. Folks have many jobs for example daddy, wife, staff. Individuals role are continuing to change therefore marketers must continue steadily to upgrade information.
Society
Consumers are influenced by what is certainly going on around them-the source of society. Population influences consumers by making them aware of certain needs and making them need it certain product and services. (Gerber and Bothma, 2008)
The economical environment also impacts the consumer behaviour. For example has a steady job or the income to spend. Advertising influence consumers clearly in evoke them to get a specific product.
Personal
People social status also impact consumer buying behaviour. Including the parent will effect the kids buying habits depending on age.
People change the products and services that they buy over their life time. Marketers explain their target marketplaces as certain life-cycle categories and develop appropriate products and marketing programs. (Talloo, 2008)
The lifestyle will be a factors influencing consumer action as one who makes RM10, 000 and person who makes RM1, 000 will be a different on spending income.
The characters produce an influencing on consumer buying patterns as you is outgoing person and an example may be introvert will has clearly different on the types of buying. (marketingteacher. com)
Psychological
Motive is a driving a vehicle force that causes a person to do this to fulfill specifies needs. Inspiration marketers can review the primary makes influencing consumers to buy or not buy products and services. When you get something, you usually do it to fulfil some type of need. This need becomes motives when aroused sufficiently. (Lamb, Locks and McDaniel, 2009)
perception
The procedure for selecting, organizing and interpreting data inputs to produce meaning is understanding. Selective subjection is go for inputs to be exposed to our recognition. Selective distortion is changing present received information, inconsistent with beliefs. Selective retention is remembrances inputs that support beliefs, neglects inadequate data. Interpreting information is regarding on things already familiar and knowledge stored in the ram.
Learning
When people react, they learn. A change in an individual behaviour showing from experience is learning. The importance of learning for marketers is that they can build-up demand for a product and services by associating it providing positive support, with strong drives, and using motivating cues. (Talloo, 2008)
consumerbuyingbehaviour1 Factors Affecting Consumer Buying Behavior
Adapted from: www. marketing91. com
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Adapted from: http://www. consumerpsychologist. com/intro_Consumer_Behavior. html
Consumer Buying Process
What factor affects consumers to buy products? The buyer buying process is a matter as many external and inner elements that effect on the buying decisions of the consumer. (marketingteacher, 2011)
Consumer tendencies includes the emotional functions that consumers will recognizing needs, finding ways to resolve, making purchase decisions example if to purchase the merchandise, interpreting information, make planning, and putting into action. (Ray Lester, 2008)
1. Need Recognition
How you decide to purchase a product or services you want? Need popularity is the result of an imbalance between a genuine and a desired personal state. Need popularity may be brought on by the data that a current product is not performing properly, or when another product seems superior to the one presently used. Once a need or want is recognised, the buyer then begins to perform an information search. (Olsen and Zhao, 2010)
2. Information search
The buying process often requires collection of activities associated with locating the most suitable merchant of the merchandise in question. Consumer will trust interior and personal resources of information more than external resources. Internal source is memory space and external source is friend and family ideas. The degree of risk involved in the purchase, the amount of experience that the consumer has with the product category and the genuine cost of the search in term of money and time will affect your time and effort to the search information. Consumers narrow their potential options to an evoked group of suitable alternatives that could meet their needs. (Ferrell and Hartline, 2008, p151. )
3. Evaluation of various alternatives
After collecting information about various brands of the product, the person can make comparison of various brands of the merchandise. It consists of mental exercise. This level is a crucial stage of buying process. The individual may take advice of the other individuals. In this level the person analyses various qualities of product- price, quality, coloue, design, warrantee, etc. Trehan. 2010
4. Purchase decision
A consumer's purchase motive and the genuine act of shopping for are distinct principles. Several factors may avoid the actual obtain occurring. Marketers must ensure that their product is available and provide solutions that increase ownership utility
5. Post Purchase Evaluation
In this stage is the bond between your buying process and the introduction of long-term customer romantic relationships. Marketers must meticulously follow consumers reactions like satisfaction, siassatisfaction or cognitive dissonance to screen the merchandise performance and its capability to meet customer expectation. Cognitive dissonance means have you made the right decision (Take great pride in, Hughes, Kapoor, 2010)
7 Ps
Product
Is your current product or service, or mix of products and services, appropriate and suitable for the marketplace and the customers of today?
The product means exactly what is offered to a market for its consumption or use. The merchandise can be considered a physical object or something of some sort. The product proposed by a manufacturer involves physical items such as laptop, beauty products or machine tools. Products that provided by service industries like accountancy services and dental treatments. The range of products offered is called product blend. The organisation earnings is from the sales of products. It is plainly important that the range and quality of product mixture is frequently examined and amended. (Cole, 2004)
A product serves as a a lot of money of capabilities or characteristics. a product's major reason for exixtence is named its core benefit. It is the simplest possible response to an expressed need: no branding or product packaging, no warranties or services claims, just most basic reason why that produce would be needed. (Pickton, Masterson p205. 2010. )
Prices
Pricing strategy is based on demand for the products and the expense of making it, some special considerations can also influence the price. A special introductory price is employed to get customer to get one of these new product. Some company enter market with very high prices and then lower them over time, example suppliers of hi-def televisions and computers. Gitman and McDaniel, The price tag on the merchandise must be establish at the right place for the prospective market.
Prices is the valuation put upon the merchandise by the manufacturer. It must cover pricing, savings, allowance, credit terms and so forth. It handles price competition. Itkar, p11
The second P in the solution is price. Develop the habit of continually examining and reexamining the costs of the merchandise and services you sell to make certain they're still appropriate to the realities of the current market. Sometimes you need to lower your prices. At other times, it can be appropriate to improve your prices. Many companies have found that the success of certain products doesn't justify the amount of effort and resources that go into producing them. By boosting their prices, they may lose a share of the customers, but the remaining percentage generates a earnings on every deal. Could this be appropriate for you?
Sometimes you will need to improve your terms and conditions of deal. Sometimes, by spreading your price over some a few months or years, you can sell a lot more than you are today, and the interest you may charge will more than make up for the delay in cash receipts. Sometimes you can incorporate products and services as well as special deals and special campaigns. Sometimes you can free additional items that cost you very little to create but make your prices appear far more attracting your customers.
In business, such as nature, once you experience amount of resistance or frustration in any part of your sales or marketing activities, be open to revisiting that area. Be open to the likelihood that your present pricing framework is not perfect for the existing market. Be open to the necessity to revise your prices, if required, to remain competitive, to survive and thrive in a fast-changing market.
Promotion
The third habit in marketing and sales is to think in terms of promotion all the time. Advertising includes all the ways you tell your visitors about your products and how you then market and sell to them.
Small changes in the manner you promote and sell your products can result in dramatic changes in your results. Even small changes in your advertising can lead immediately to higher sales. Experienced copywriters could boost the response rate from advertising by 500 percent by simply changing the headline by using an advertisement.
Large and small companies in every industry continually test out different ways of advertising, promoting, and providing their products and services. And here is the guideline: Whatever approach to marketing and sales you're using today will, eventually, stop working. Sometimes it will go wrong for reasons you understand, and sometimes it will be for reasons you do not know. In either case, your ways of marketing and sales will eventually stop working, and you'll have to develop new sales, advertising techniques, offerings, and strategies.
Place
Distribution strategy is creating the channel by which something flows from the manufacturer to the consumer. One aspect of distribution is deciding how many stores and which specific wholesalers and vendors will deal with theproduct in geographic area. Place is selecting functional location and types od circulation channels regarding to coverage, efficiency, need, profile, technical etc. (Katsioloudes and Hadjidakis, 2007)
Place contains all the actions involved in transferring ownership and physical ownership of the product to consumers. it purpose is to make the product and service available to customers at thr right time and at thr right place. Distribution mix include channels of syndication and physical syndication.
physical distribution includes all activities which are involved in moving products and services from manufacturers to consumers. It consists of transportation and storage area of goods. (Gupta, 2007)
Promotion must connect to the mark market that the right product is available in the right place at the right time. (Kitchen, Proctor p174-175. 2001.
The fourth P in the marketing mix is the place where your product or service is in fact sold. Develop the behavior of looking at and reflecting after the precise location where the customer complies with the salesperson. Sometimes a change in place can lead to a rapid increase in sales.
You can sell your product in a variety of places. Some companies use immediate selling, sending their salespeople out to professionally meet and talk to the prospect. Some sell by telemarketing. Some sell through catalogs or mail order. Some sell at industry events or in retail institutions. Some sell in joint ventures with other similar products or services. Some companies use manufacturers' associates or vendors. Many companies use a combination of one or even more of the methods.
In each circumstance, the business owner must make a good choice about the most effective location or place for the customer to get essential buying information on the product or service had a need to make a buying decision. What is yours? In what manner should you change it out? Where else would you offer your products?
Promotion
Every product need to be promoted, this is actually the must be drawn to the interest of industry and its own benefits. The main methods of advertising include personal selling, publicity, sales advertising and advertising.
Promotion is important element of the mix and identifies any medium that can be used to talk to the target teams. The promotional blend include workshops, debate communities, newsletters, presentation and so forth. It is also worried about the meaning that has been sent. (Meek, Palmer, Parkinson, 2007)
Process-
the manner in which these services are deliverd (e. g policies and procedures adopted, amount of discretion on the part of staff, the scheduling system use for meetings)
All areas of what must happen must be carefully thought through, drafted, examined, customized and supervised. the introductory process, should be timetabled and then supervised so that what's declared actually happens when and how it will. (Worsam p. 227. 2002.
Process make reference to the machine used to assist the organisation in providing the service.
Process represent the convergence of the marketing and procedures functions and therefore effect real-time service delivery and quality.
Physical evidence
-the physical environment (e. g. furnishing, colour scheme, noise) and facilitating goods (e. g. employ the service of cars, packaging of dry-cleaned clothes) which related to the provision of services.
Physical evidence
Given the intangible dynamics of services, customers look for reassurance associated with required benefits and quality. They look for physical research (eg fittings and fitted, appearance of personnel) as an indicator of likely satisfaction (Drummond, Ensor p10. 2005
Physical data is the visual or tangible signs of the service product, such as design and building of the facility and generally speaking the aesthetic appeal.
People
People-those who deal immediately with customers and who actually perform a service
People are responsible for the event and are a major distinguishing quality in the usage process. (Shilbury, Westerbeek and Funk. P7. 2009.
People make reference to all people directly or indirectly mixed up in consumption of something like employees or other consumers. An important ingredient to any service provision is the utilization of appropriate personnel and folks. Recruiting the right staff and training them correctly in the delivery of their service is essential if the organisation wants to secure a form of competitive advantage. Staff should have the appropriate social skils, aptititude and service knowledge to supply the service that consumer are paying for. Kumar. P48. 2010
The last P of the marketing mix is people. Develop the behavior of thinking in terms of individuals outside and inside of your business who are sensible for every element of your sales and marketing strategy and activities.
It's amazing how many business people and businesspeople will work extremely hard to believe through every aspect of the online marketing strategy and the marketing combine, and then pay little attention to the fact that every sole decision and coverage should be carried out by a particular person, in a specific way. Your capability to select, recruit, seek the services of and wthhold the proper people, with the skills and skills to do the job you need to have done, is more important than everything else come up with.
To achieve success in business, you must develop the habit of pondering in conditions of exactly who is going to carry out each job and responsibility. Oftentimes, it isn't possible to go forward until you can entice and put the right person into the right position. Many of the best business ideas ever developed sit on cabinets today because the [people who created them] could not find the key people who could do those programs. ( Brian Tracy, 2004)
Definition of Satisfaction
As Susan Ward (2008) says, a superior quality customer service is the life span blood of any business. Good customer services may help organization to stay customers. High quality customer service is established when the organization start to provide great services at on a regular basis. As a person, the typical and quality of the customer services determines if the purchases or to leave, even the product and service itself is fulfillment of desire (Alan Chapman 2009). Regarding to Tami Runstedler (2010), the largest strategy in business is customer services. We have to build romance with customer by added personal touch. Besides, excellent customer support is help build business to customer commitment. With customer commitment, the business attains the customer for life. This aspect has been reinforced by Albert E. Schindler (2004).
Customer satisfaction is the act of just doing enough to be satisfactory to a customer. It really is simply getting together with basic goals. Eric Jacques 2010
Service Quality
Thus service quality aims follow directly from business strategy (where else could they result from?), and business strategy itself must combine quality objectives. Looking to be the "world's best" is rarely necessary and almost never useful. The more insightful question is, "Are we offering our services so that we deliver quality value to customers while managing our costs?" Service quality is thus not a question of whether your service is superior to that of a distant rival or whether you meet arbitrary industry benchmarks (both of which is often useful in some situations). Your goal is not to impress industry experts. Somewhat, you must determine whether your service offering is suited to your purpose given your business strategy.
It's a distress to realize that a lot of companies operate under the same proper guidelines: satisfy customers, treat employees well, and make a profit. What sets a service organization apart is not its generic strategy, however the particular, individual situation when a given firm locates itself. Each firm's quality agenda must match its competitive position, its budget constraints (current & future income), and the benefit-oriented value proposition it provides customers.
It is common to over-engineer service offerings in the name of "quality improvement, " or "capturing the marketplace, " or "customer satisfaction. " Product designers and visionary leaders tend to have a perfectionist bent. It's fun, it's cool, and everything is a "must have. " But it's the job of the in charge quality manager to include in and eliminate - to balance the tradeoff between benefits and costs. If for example your (new and existing) customers would be correctly quite happy with four-hour on call replies and 24 hour non-emergency replies, but you're taking care of to 30 minute on telephone calls and 1 hour non-emergency reactions, then you're shipping and delivery cost. That is, your service offering has features that do not gain our customers. In case the real or projected market doesn't want the service you're providing, and it costs you money, stop doing it. Allocate your money to better uses.
This emphasis on benefit-oriented service quality is certainly subjective and difficult to assess. Acknowledge subjectivity is area of the quality game. Quality steps are both subjective yet critically important. Continual quality improvement will evaluate service offers in terms of (current & future) customer satisfaction, and will always balance the tradeoff between (current & future) income vs costs. Wayne A Bergstrom
Many years ago, in an effort to produce higher quality service and higher client satisfaction, businesses instituted a satisfaction study that was given to all or any customers. They let the customers know that they might be surveyed to see if they were satisfied with the product. The theory behind this is to let the customers know that the business cared about their satisfaction and was eager to hear their opinions.
This procedure, however, will more injury than good. Studies have shown that when customers expect to receive a satisfaction survey, they may be less satisfied with the services. Ofir & Simonson (2001) obtained these brings about some cleverly designed field tests across lots of market sectors; these included a computer company, a power electricity company, a supermarket, an electric equipment company, and a mag company. The experimenters let some people know that they might be asked about their satisfaction (after getting services), while some were not notified. All were approached after receiving the services to examine their satisfaction. The tests were all conducted on large samples of real business transactions. The results were clear: customers who were told they might be asked about their satisfaction reported less satisfaction than those who didn't realize they would be asked for his or her opinions.
In addition, pre-announced satisfaction research are expected to be detrimental to worker morale (e. g. , Grey & Bergman 2003). Information has shown that the actual quality of customer services is expected to be reduced because of this of this strategy (e. g. , Armstrong 1998). Furthermore, researchers have been unable to find proof any benefits for pre-announced full-population consumer satisfaction research. The collection and evaluation of such surveys only consumes unnecessary time and money.
But despite these studies, virtually all businesses in industry use similar satisfaction studies. They still consider this to be a powerful approach for improving service quality. (Scott Armstrong, 2008)
The 5 dimensions of servqual
Tangibles- appearance of physical facilities, equipment, personnel and communication on material.
Tangible defines the looks of the physical facilities and environment, the equipment, employees and of cause just how of communication.
The tangible sizing create the first palm impression that your customers get and could in the foreseeable future relate your enterprise with. You want the first hand impression that your visitors get to be considered a great picture they combine with something positive like quality for the money spent.
Reliability_ ability to execute the promised service dependably and accurately
Reliability defines the power of the company to execute and complete the promised service, quality, accurately and promptly.
Reliability is just as important as the first hands impression, because every customer desires to learn that their provider of what it might be are reliable and present the service agreed including great quality within the given timeframe without compromising on the product quality.
Responsiveness- Determination to help customer and turned out prompt service.
Responsiveness defines the business's willingness to help its customers and provide it with a good, fast and quality service.
Like the rest of the measurements responsiveness is also very important, the clients will without doubt be able to feel if they're appreciated customers and if they get the very best quality service possible.
Assurance-knowledge and courtesy of employees and their capability to convey trust and confidence
Assurance identifies the employees of the business, that they are skilled workers which can gain the trust and self confidence of the customers.
The employees must have the ability to give the customers assurance in the products they want to sell. In the event the coming or current clients of the business are not comfortable or feel safe working with the employees they are likely not to continue employing your company. Guarantee is a lot about keeping and maintaining business relations.
Empathy-caring, individualized attention the company provides its customers.
Empathy defines a business who cares and provides individualized attention to its customers so they feel special and valued as a customer.
The firth aspect of empathy combines the second, third and fourth dimensions to a higher level, without they but still can be compared, because they are all individual dimensions of the service quality combination. It is vital to give the customers individualized and quality attention, a lot more special and valued they feel the higher the chances are for them to return to your business and continue doing business. (Downwindz, 2010)
Customer assessment include belief and expectation across all five SERVQUAL dimension. SERVQUAL dimension can use in deciding specific consumer and site needs. (Chris Arlen, 2011)
