22 research outputs found
Dining atmospherics and food and service quality as predictors of customer satisfaction at sit-down restaurants
Get PDFNot on Sherpa or Masterfile. On journal website it says: This is an open-access journal - free use, distribution, and reproduction in any medium is allowed, provided that the journal, and original author/s are credited.South African sit-down restaurants operate in a fiercely competitive environment and customer satisfaction has proven critical for survival in this and other service industries. A satisfied customer spreads positive word-of-mouth, returns, and contributes to profitability. Extant literature indicates that customer satisfaction is in turn impacted by product and service quality, and also by the atmospheric elements present in the servicescape. It is, however, important to determine the extent to which food and service quality and dining atmospherics predict customer satisfaction within a South African sit-down restaurant context before restaurateurs embark on marketing strategies to enhance these aspects to cultivate customer satisfaction. The study therefore measures these constructs and determines the extent to which they predict customer satisfaction.
The study is quantitative and descriptive in nature. Data was collected through self-administered questionnaires from 250 sit-down restaurant diners in urban areas of South Africa’s North-West Province. The results indicate that respondents’ perceptions of food and service quality are significant predictors of customer satisfaction at sit-down restaurants. Respondents’ perceptions of dining atmospherics also predict customer satisfaction when food and service quality are controlled. The article provides recommendations on how dining atmospherics, food quality and service quality can be enhanced to improve customer satisfaction at sit-down restaurants.http://www.ajhtl.com/uploads/7/1/6/3/7163688/article_37_vol_3_2_nov_2014.pd
Relational benefits and customer satisfaction – a South African short-term insurance industry perspective
No full textSouth African short-term insurers struggle to maintain and grow market share due to industry competitiveness and decreasing customer retention rates. One way of retaining customers is to establish and maintain long-term relationships with them. For relationships to last, customers should derive benefits from these relationships. It is furthermore professed that the relational benefits that customers gain from customer-business relationships positively impact customer satisfaction, which in turn enhances the quality of these relationships.
This paper aims to determine whether relational benefits (confidence, social and special treatment benefits) predict customer satisfaction in the South African short-term insurance industry. Research focussing on customer relational benefits is limited, and such research has not been conducted within this industry or context. A quantitative, descriptive research design was undertaken and convenience sampling was used to select respondents. Data was collected by means of self-administered surveys from short-term insurance policy holders residing in Gauteng, South Africa. The results indicate that confidence benefits best predict customer satisfaction, followed by social and special treatment benefits. It is therefore recommended that, in order to improve customer satisfaction and maintain long-term relationships with customers, short-term insurers adapt their product and service offerings to include confidence, social and special benefits to customers
Developing a framework for sustainable supply chain innovation in the South African FMCG industry
Get PDFEconomic and Management Sciences with Business Management, North-West University, Vanderbijlpark CampusThe competitive advantage of a fast-moving consumer goods (FMCG) business is underscored by the strength of its supply chain in comparison to that of competitors. As a result, competition within the South African FMCG industry is extremely fierce and exacerbated by technological advancements, changing customer preferences, low profit margins, high inflation rates, and an increase in the demand for more environmentally sustainable products. Consequently, businesses within the industry have opted to use innovation within their supply chain to differentiate themselves from their competition. However, a focus on innovation alone is not sustainable. As such, the primary objective of this study was to develop a framework for sustainable supply chain innovation (SSCI) within the South African FMCG industry, by identifying and evaluating the importance of critical factors necessary for the attainment of sustainable supply chain innovation.
A quantitative research strategy was used with a combination of exploratory and descriptive (cross-sectional) research designs that were implemented in this study. The target population consisted of supply chain managers at FMCG businesses in South Africa. A non-probability sampling method with a convenience sampling technique was used to draw the sample, and 526 usable responses were obtained. A structured questionnaire was used to collect the primary data of the study by means of a survey that was made available to an online panel of a specific market research agency.
The Statistical Consultation Services of the North-West University analysed the empirical data and included assessing the Cronbach’s alpha coefficient values for establishing reliability, conducting confirmatory factor analysis to establish validity, calculating descriptive statistics, and conducting structural equation modelling (SEM) to test the conceptual model. The descriptive results indicated that risk management received the lowest score among all relational practices, environmental performance received the lowest score among all performance indicators, and network structure received the lowest score in terms of the supply chain innovation elements. Furthermore, results from the SEM indicated an acceptable model fit, with statistically significant structural paths supporting all the hypotheses except for H2.
Based on the results, it is advised that FMCG businesses should focus on enhancing their risk management practices by exploring and implementing alternative sourcing arrangements and ensuring that effective and frequent communication with supply chain partners is maintained. In terms of performance indicators, a focus on adopting sustainable practices such as developing rigorous environmental objectives, pursuing recycling initiatives, and reducing air emissions are proposed. Furthermore, the use of innovation in business processes is recommended whereby
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advanced manufacturing technologies can be used as well as collaboration between FMCG businesses and universities. It is also advised that FMCG businesses develop and foster a culture of transparency, mutual concern, and shared governance between the business and its supply chain partners, as well as engaging in partnerships that advance the attainment of sustainable supply chain innovation.
Several theoretical as well as managerial contributions were made. This study’s theoretical contribution is also highlighted by the fact that relational practices, performance indicators, and supply chain innovation elements have not been investigated in the global or South African FMCG industry. Consequently, the research findings make a significant theoretical contribution to existing business management literature, which may also serve as a direction for future studies. The conceptual framework posited in this study confirmed the effect and interrelationships between the constructs, and the study was the first to test these constructs as a multi-dimensional construct. As such, the study also provided more insight pertaining to the antecedents of SSCI (including relational practices, performance indicators, and SCI elements). In addition, the study was also the first to empirically test the effect of the performance indicators on SCI elements.
In terms of managerial contributions, the findings of this study can assist managers and employees of FMCG businesses in enhancing their understanding of SSCI and the identified antecedents. In addition, a framework for sustainable supply chain innovation was developed and proposed from the literature, as well as empirical results. The framework highlighted that internal commitment (from the business) as well as external commitment (from supply chain partners) are important for the attainment of sustainable supply chain innovation. The framework comprises five steps that can be used by businesses in the South African FMCG industry to identify the scope of transitions needed for the attainment of SSCI. This study also proposes various conclusions and recommendations to FMCG businesses regarding SSCI. Recommendations for future research include using a qualitative research strategy to gain an in-depth understanding of the challenges hindering sustainable supply chain innovation in the FMCG industry.Doctora
Determining predictors of brand loyalty in the South African wine industry
Get PDFMCom (Marketing Management), North-West University, Potchefstroom Campus, 2018The South African wine industry is becoming more competitive, as there is a significant variety of wines and wine brands available to consumers. This makes it difficult to gain loyal consumers and build long-term relationships with them. Wine brands, therefore, need to determine those aspects that influence consumers' loyalty, in order to develop the appropriate marketing and branding strategies to build long-term relationships with consumers. Branding and brand strategies have been established as tactics to gain and retain loyal consumers and build long-term relationships with them. Branding and brand strategies assist in gaining an understanding regarding what influences consumers' loyalty towards a business. If a business implements a suitable branding strategy, it will be able to improve its brand, leading to consumers becoming satisfied with the brand, ultimately resulting in loyalty. The primary objective of this study was to investigate brand identity, brand value, perceived quality, and brand trust as predictors of satisfaction and ultimately brand loyalty within the South African wine industry. A quantitative descriptive research design was followed, implementing non-probability convenience and judgement sampling. The data was collected by means of self-administered questionnaires given to respondents in the Western Cape Province who were older than 18 years, and consume wine more than once a month. The sample size included 260 responses. Structural equation modelling was used to test the formulated hypotheses, indicating that brand identity, perceived brand value, perceived quality and brand trust statistically significantly predict satisfaction, and satisfaction statistically significantly predicts brand loyalty. A confirmatory factor analysis and Cronbach alpha test were conducted to confirm the constructs' validity and reliability respectively. Considering the results, a model is proposed that directs South African wine brands' brand identity, perceived brand value, perceived quality and brand trust that can be used to enhance consumers' satisfaction toward the brand, which should ultimately result in them becoming loyal towards the brand. Thus, for wine brands to be able to achieve loyalty among their consumers, they need to enhance consumers' satisfaction towards their brand, which can be done by improving their brand identity, perceived brand value, perceived quality and brand trust. In order for wine brands to improve their brand identity, they need to differentiate their brand. To improve perceived brand value, wine brands should have reasonable prices. To improve perceived quality, wine brands should ensure that they are the best brands in the market. To improve consumers' trust in the wine brand, the brand should be dependable. Lastly, to improve consumers' satisfaction towards the wine brand, they need to present consumers with what they are looking for. Recommendations for future research consist of working together with wineries and liquor stores to gain access to their consumers for primary data collection. Researchers should also consider making use of larger sample sizes, and include more provinces. Online surveys can be used, as they are more user friendly, cost effective and less time-consuming. Lastly, the model provided in this study can be used in other studies, economies or industries to test how reliable, relevant and applicable this model is.Master
The interrelationship between service quality, relational benefits, customer satisfaction and behavioural intentions in the South African short–term insurance industry
Get PDFSouth African short-term insurers operate in a highly competitive market but do not
successfully differentiate themselves from competitors. One way differentiation can be
achieved, is to adopt a customer-focused approach where short-term insurers engage in
CRM initiatives such as providing quality services and relational benefits to satisfy customer
needs and subsequently retain customers over the long term. This study investigates the
effect of service quality and relational benefits on customer satisfaction, as well as the effect
of customer satisfaction on behavioural intentions in the short-term insurance industry. A
quantitative, descriptive research design was followed and convenience sampling was used
to select respondents. Data was collected by means of self-administered surveys from shortterm
insurance customers in Gauteng, South Africa. The results of the structural equation
model indicate that service quality and relational benefits have a significant effect on
customer satisfaction, which in turn has a significant effect on customers’ behavioural
intentions. The paper also offers several managerial implications
Developing a scale to measure the extent of customer engagement in the South African retail banking industry
Get PDFPhD (Marketing Management), North-West University, Potchefstroom Campus, 2017The retail banking industry of South Africa is currently facing various challenges due to the rapid growth of the market, new entrants, an unpredictable economic environment, escalating regulatory costs, changing customer behaviour, and the ease with which customers can switch between banks when they are unsatisfied with the products and/or services received. These changes in the retail banking environment are affecting the profitability and success of retail banks negatively. As the survival of South Africa’s core banks has a direct influence on the economic stability of the country, it is crucial for banks such as Absa, Capitec Bank, FNB, Nedbank and Standard Bank to remain sustainable during these challenging times. Based on the in-depth literature review, it became clear that retail banks need to develop enduring relationships with customers and that they have to focus on developing engaged customers, as these customers show positive behavioural intentions. Therefore, retail banks that are able to measure and improve customers’ engagement, could realise a strategic advantage above competing banks.
The primary objective of the study was to develop a multi-item scale to measure the extent of customer engagement in the South African retail banking industry. In order to achieve this, the study provided insights into the South African retail banking industry within the services marketing domain, as well as an overview of relationship marketing as the foundation of customer engagement. The rudimentary customer engagement scale was further refined and tested in conjunction with other relationship marketing constructs.
The study followed an exploratory research design. A quantitative research design was adopted, although qualitative research techniques were used to assist in the development of the initial customer engagement scale. Non-probability convenience and quota sampling was used to collect data by means of a self-administered questionnaire from the target population (Generations X and Y and baby boomers), who had been making use of the retail banking services of one of the main retail banks for two or more years. A total of 231 usable questionnaires were collected during the first data collection phase, and 152 usable questionnaires during the second data collection phase. A 14-item scale was developed, which measures customer engagement in the South African retail banking industry. This multi-item scale could guide retail banks to improve customer engagement so that they might enjoy the benefits of engaged customers and gain a competitive advantage in this changing industry. In addition, a customer engagement model was proposed that may be used as a measure to establish customer loyalty in the South African retail banking industry.Doctora
Investigating the antecedents and consequences of vehicle buyers' brand attachment behaviour
Get PDFMCom (Marketing Management), North-West University, Potchefstroom Campus, 2018The South African automotive industry is faced with the challenge of consumers losing confidence in their vehicle brands and becoming detached from the industry. The present tumultuous economic climate in South Africa, the growing number of light passenger vehicles available to consumers, recent malfunctioning scandals, and the introduction of various alternative modes of transport, all contributes towards to consumers feeling detached from the industry. Since the South African automotive industry is characterised as a competitive industry, it is increasingly important for vehicle brands to pursue the development and maintaining of consumers' brand attachment, in order to help them to differentiate themselves from competitors by the strength of their consumers' attachment towards their brands. The literature investigation uncovered that vehicle brands need to cultivate their consumers' brand attachment to ensure that their brand will be sustainable. Therefore, the primary objective of this study was to determine the factors that influence buyers' attachment to vehicle brands, and whether buyers' brand attachment has a significant influence on their purchase intention and willingness to also pursue extensions of the vehicle brand. The study implemented a descriptive quantitative research design, and used non-probability convenience sampling to collect data from consumers who reside in Gauteng, who own a vehicle, and who plan to remain with their current vehicle brand when purchasing a new vehicle. A computer-administered questionnaire was distributed to public and closed community groups on Facebook (within Gauteng), resulting in a total of 322 usable questionnaires. The data analysis included assessing the validity and reliability of the scales, the calculation of descriptive statistics, and the calculation of inferential statistics in the form of a standard multiple regression and structural equation modelling. The results of the empirical investigation were reported in the form of two articles. The measurement scales used to measure the constructs of the study were found to be valid and reliable. In addition, brand image, brand trust and brand personality were found to have an influence on the level of brand attachment vehicle buyers experience, with brand personality having the greatest influence. Therefore, it is recommended that vehicle brands ought to focus their efforts on enhancing their brand personalities, as vehicle buyers' attachment towards a brand is facilitated by their ability to identify their individualistic selves with the personality of the brand. The results also indicated that brand attachment has an influence on vehicle buyers' purchase intentions, and an even stronger influence on vehicle buyers' brand extension attitude. For this reason, vehicle brands should ensure that their individualistic brand personality is portrayed throughout the various product ranges they have on offer, in order to increase consumers' willingness to purchase extended product offerings. Future research should address the methodological and other limitations of this study by collecting data from respondents of all nine of South Africa's provinces, and by considering the use of probability sampling. Collecting longitudinal data should also be considered, because brand attachment is developed over time. Lastly, future research can focus on measuring consumers' brand attachment towards a specific vehicle brand and/or model, which will help to develop a broader perspective of vehicle buyers' brand attachment behaviour.Master
Determining predictors of customer loyalty in the South African retail banking industry
Get PDFMCom (Marketing Management), North-West University, Potchefstroom Campus, 2017The South African retail banking industry is a highly competitive industry which has experienced an increase in customer attrition. A large number of customers showing intentions to leave their banks have been observed. Consequently, South African banks have begun to put more focus on the use of loyalty or loyalty programmes to ensure that customers are not easily tempted to switch banks. To this end, banks are investing billions of Rands on loyalty programmes with the aim of obtaining and keeping profitable customers.
From a literature perspective, relationship marketing has proven to be an invaluable tactic in the banking industry to create intimate relationships with its customers. This type of marketing helps to gain insights about customers and their satisfaction levels, also in light of the intensifying competition in this sphere. It is a truism that relationship marketing can result in loyalty.
The primary objective of this study was to determine the predictors of customer loyalty, including service quality, trust, switching costs, and satisfaction, in South African retail banks. The primary research conducted was based on a quantitative descriptive research approach. A non-probability convenience sampling technique was implemented to reach respondents, and self-administered questionnaires were distributed among South African retail bank (Absa, Capitec, FNB, Nedbank and Standard bank) customers in the Gauteng Province who have been with their bank for a period of two or more years. The sample size realised included 464 responses.
The structural equation modelling (SEM) results indicated that service quality, trust and perceptions of switching costs statistically significantly predict satisfaction, which in turn statistically significantly predicts loyalty. The confirmatory factor analysis (CFA) and Cronbach alpha values confirmed the reliability and validity of the measurement scales for measuring service quality, trust, switching cost, satisfaction and loyalty. Furthermore, no practically significant differences were uncovered among retail banks in terms of service quality, trust, switching cost perceptions, satisfaction and loyalty.
Based on the results, this study proposes a model that indicates how South African retail banks can use service quality, trust and switch cost to increase satisfaction, which consequently results in loyalty.
It is recommended that, in order to achieve loyalty, retail banks should improve satisfaction, which is achieved by improving service quality, establishing trust and discouraging customers from incurring switching costs (during the change from one bank to another). Therefore, to improve satisfaction, banks should not exaggerate on promises as this might lead to dissatisfaction. Service quality perceptions can be improved by specifically addressing banks’ responsiveness to their customers. Furthermore, trust can be improved by being reliable in the promises made. Lastly, to improve perceptions of switching costs, banks should inform customers beforehand of the potential costs involved in switching.
Recommendations for future research include using online surveys which are less costly and time-consuming. Researchers can liaise with retail banks to conduct primary research within bank branches since the Protection of Personal Information Act restricts banks from giving out customers’ information. Finally, the conceptual model developed can be tested in other service industries to assess its reliability, relevance and applicabilityMaster
Affective commitment, trust, perceived value and service quality as predictors of customer engagement in the South African open medical aid industry
Get PDFThe South African open medical aid industry is undergoing various challenges and is experiencing increased pressure to improve its service offerings. This is because customers of open medical aid providers are becoming progressively more educated about the various healthcare products and services available. As a result, customers are better equipped to make informed decisions concerning the available open medical aid options, which may lead to switching from their current open medical aid to a competitor when their needs are not met by the current medical aid product and service offerings. Consequently, open medical aid providers must retain and improve customer engagement by building strong relationships with their customers. Therefore, this study aims to determine if affective commitment, trust, perceived value and service quality predict customer engagement within the context of the open medical aid industry of South Africa. The study considered existing literature and a quantitative descriptive design. Non-probability convenience sampling was used to draw the sample through self-administered questionnaires, which resulted in a total of 307 questionnaires collected for data analysis. A standard multiple regression analysis was also conducted. Results indicated that affective commitment, customer trust, perceived value, and service quality could be predictors of customer engagement
A service recovery model for the mobile internet service provider industry
Get PDFPhD (Marketing Management), North-West University, Potchefstroom CampusDue to the nature of services – being intangible, perishable and requiring the human-element – the service delivery process can be relatively complex, thus posing distinct marketing challenges. This process is even further impeded by customers’ subjective assessment of the service experience. As such, irrespective of the service provider’s commitment to deliver satisfying and error-free services, it might not always be able to meet customers’ expectations, inevitably resulting in service failures. Service failures often result in customer dissatisfaction, disloyalty, or defection. These negative behaviours can be minimised by properly handling customer complaints and having service recovery strategies in place. Successful service recovery is, therefore, essential in sustaining customer satisfaction and loyalty. As the South African mobile internet service provider (ISP) industry has been experiencing a significant increase in customer complaints (about service failures) and poor complaint resolution, this study set out to investigate the service recovery actions of these providers. As such, the study developed a service recovery model for the South African mobile ISP industry, with a view into the service recovery attributes that influence customers’ satisfaction with the recovery effort, as well as the behavioural outcomes that could result from customers who are satisfied with the service recovery. The study implemented a quantitative descriptive research design. The target population comprised customers (i.e. contract and prepaid) of the main South African mobile ISPs (i.e. Cell C, MTN, Telkom, or Vodacom), who have complained to their mobile ISP. A total of 484 usable responses were obtained through non-probability convenience sampling. The primary data was collected by means of an online survey made available on social networking sites and an online panel (by Consulta). The empirical data analysis included (a) descriptive statistics, (b) Cronbach’s alpha coefficients to test the reliability of the scales, (c) a confirmatory factor analysis to confirm the validity of the scales and (d) structural equation modelling (SEM) to test the conceptual model and hypothesised relationships. The structural model results indicated an acceptable model fit, with statistically significant structural paths supporting H1, H2, H4, H5, and H6. As such, it is recommended that South African mobile ISPs focus on the implementation of effective service recovery actions, such as compensation, response speed, apology, and explanation, as these attributes were found to have a positive effect on respondents’ satisfaction with service recovery. Mobile ISPs are furthermore advised to ensure that their customers are satisfied with the provided service recovery effort, as this can improve their trust, generate positive eWOM, and encourage repurchases. Several theoretical and managerial contributions were made from the research findings. From a theoretical perspective, this study introduced service recovery attributes (i.e. compensation, response speed, apology, and explanation) as a multi-dimensional construct. The study further contributes to the service recovery literature, by establishing the relationships between the antecedents of satisfaction with service recovery as well as the behavioural outcomes of service recovery. From a managerial perspective, the service recovery model developed in this study provides a comprehensive tool that South African mobile ISPs can implement to manage service failures, restore customer satisfaction, and encourage positive behavioural responses. Ultimately, the research findings serve as a basis for identifying the antecedents and behavioural outcomes of satisfaction with service recovery. It is recommended that future research expand these findings by testing the service recovery model in different service industries in order to determine the relevance and viability of the model.Doctora
