this project is based on a survey done by students of MBA in bit store named hot & cold. this project will benefit plenty of scholars who do believe in live surveys.
this project is based on a survey done by students of MBA in bit store named hot & cold. this project will benefit plenty of scholars who do believe in live surveys.
this project is based on a survey done by students of MBA in bit store named hot & cold. this project will benefit plenty of scholars who do believe in live surveys.
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
SATISFACTION SURVEY AMONG CUSTOMERS OF HOT & COLD
Introduction:
The study aims at understanding the level of customer satisfaction among the customers of Hot & Cold.
Research Problem:
To know the level of satisfaction among the customers is very important in any organization. In this research our aim is to find the level of satisfaction among customers of Hot n Cold and the factors effecting it.
Research Objectives:
To understand the main factors that leads to customer satisfaction.
To identify the gap between perceived and expected service quality.
To analyze those factors to see where to target and prioritize improvement efforts for the best effect.
Literature Review:
- The literature review is based on researches that have been conducted by Dayang Nailul Munna Abang Abdullah, and Francine Rozario concluded on Influence of Service and Product Quality towards Customer Satisfaction .The research managed to determine the relationship between qualities attributes of food, service and place/ambience with customer satisfaction. From the analysis conducted to test relationships, all three attributes had a significant relationship with customer satisfaction. However, only service quality and place/ambience had a positive relationship. Food quality revealed an unsuspected result of a negative relationship. This result showed that although perception of customers towards food quality was low, their satisfaction was still high. However the Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
importance of a particular attribute varies according to the type of restaurant and the type of customer.
- Researchers have recently addressed the links between customer satisfaction (CS) and restaurant performance, emphasizing the way that satisfaction affects a customers repeat purchase practices (Sulek and Hensley 2004; Sderlund and hman 2005; Cheng 2005). Several studies have identified some of the factors that influence customers satisfaction of dining experience, including wait time, quality of service, responsiveness of front-line employees, menu variety, food prices, food quality, food consistency, ambience of the facilities, and convenience (Sulek and Hensley 2004; Iglesias and Yague 2004; Andaleeb and Conway 2006).
- Tse and Wilton (2001) used conjoint analysis to investigate the trade-off between quality of service and the price on the selection of a restaurant. Their findings revealed that consumers consider price to be more important than service in making a restaurant choice. These findings were consistent for male and female consumers as well as for higher-educated consumers.
Hypothesis:
Based on the above literature study following hypothesis for the customer satisfaction of Hot & cold is formed:
Hypothesis: - H0 (Null hypothesis): There is no significant difference between the expectations and perception of the customers of HOT N COLD, i.e., H 0 : 1 = 2 .
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
INTRODUCTION
About Hot n Cold:
Hot & Cold is a fast food joint situated near the main building of BIT campus. It started its operations in January of 2011 soon becoming the favorite hangout place in BIT.
Some attractions of the place being:
Only fast food joint in the campus of BIT.
Ambience to attract youth.
Favorable location with maximum footfalls.
Some problems with the joint.
Prices quite high for student population.
Limited menu choices. Also, most items listed are not available at times.
Lack of well trained staff.
Products Offered:
Hot and Cold beverages Sandwiches Burger Muffins Soups
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
About satisfaction:
Satisfaction is a persons feeling of pleasure and disappointment that results from comparing a products perceived performance to their expectations. If the performance falls short of expectation, the customer is dissatisfied. If performance matches expectation the customer is satisfied. If performance exceeds expectation, the customer is highly satisfied or delighted.
Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation.
Satisfaction surveys are the cornerstone of a formal feedback process that measures satisfaction with products and services.
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
Significance of Customer Satisfaction:
The importance of customer satisfaction is apparent when you realize that, without customers, you don't have a business. A single unsatisfied customer can send more business away from your company than 10 satisfied customers. The more you focus on customer retention and customer support, the more long-term business you'll get. It's worth it to focus on customer satisfaction strategies, no matter how large or small your company is.
Understanding the needs of the customer is critical. A business relationship, just like any other relationship, relies on both people getting their needs met. No matter what type of business you are in, all customers want the same thing. They want to feel welcomed and appreciated by you and your staff. They don't want to get the impression that they are just being used by you for money. Small interactions like "Thank you" and a nice smile can go a long way toward customer satisfaction.
Make sure your employees operate with the same principles. A big part of customer satisfaction is reliability. If customers come to expect a certain mode of behavior from you and your employees, you should deliver it to them each and every time. Customers want to be able to rely on you. They expect consistent delivery times (if applicable) and support. By training your employees to treat all customers with the same respect, your customers will all have the same experience with your company, which will increase customer satisfaction.
Be honest when you don't meet expectations. Customer satisfaction is at its most important when something goes wrong in the chain of delivery. Whether a customer was double charged or didn't receive what she ordered, your employees need to handle the situation with the utmost care. Your employee should apologize and take steps to rectify the situation. The phrase "the customer is always right" is at the core of a good customer satisfaction strategy. It doesn't matter whether or not the customer misread the instructions or made the mistake; your employee should take steps to make the customer happy.
Customer satisfaction is the foundation of a good business. Satisfied customers will make a great foundation for return business, and they may also bring in their friends and associates. Remember that customers are the heart of any business. Keep them satisfied, and encourage them to tell their friends about their experiences with your business.
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
Measuring Customer Satisfaction:
Understanding and measuring satisfaction is a central concern. Satisfaction is a widely accepted concept despite real difficulties in measuring and interpreting typical approaches to its assessment. The most common approach is the use of general satisfaction surveys undertaken every few years.
However there are few problems with the concept of satisfaction:
It is not static, but changes over time; new experiences and levels of awareness will alter the potential levels of satisfaction that could be achieved.
It is likely to be complex and the result of a mix of experiences before, during and after the point at which it is measured.
It occurs in social contexts which are varied and changing and may be unpredictable or inexpressible to the service user.
It may be difficult to express the reasons for satisfaction; particularly where less tangible aspects of services are being considered.
It may be easier to express the reasons for dissatisfaction, particularly if this is the exceptional state.
Without understanding the causes of satisfaction, there is a danger that we might treat a good result as a reason not to change anything, seeing it largely as a PR tool.
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
Methodologies for measuring satisfaction
There are various models available which determine the customer satisfaction available. Few of them are:
Customer Satisfaction Index (CSI):
The Customer Satisfaction Index represents the overall satisfaction level of that customer as one number, usually as a percentage. Plotting this Satisfaction Index of the customer against a time scale shows exactly how well the supplier is accomplishing the task of customer satisfaction over a period of time.
The Kano model is a theory of product development and customer satisfaction developed in the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model offers some insight into the product attributes which are perceived to be important to customers.
POSE Analysis
offers an alternative to customer satisfaction. Instead of evaluating satisfaction with a proposition, POSE Analysis determines both the positioning and strength of a proposition. POSE Analysis thus offers a competitive perspective to customer satisfaction.
SERVQUAL or RATER:
It is a service-quality framework that has been incorporated into customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer) to indicate the gap between customer expectations and experience.
A related theory to customer satisfaction that has been adapted by Bartlett and Han (2007) in customer satisfaction is the SERVQUAL model by Parasuraman, Zeithaml & Berry (1991). This model indicates that there are five dimensions used in measuring customer service quality. The dimensions included in this model are tangibles, reliability, responsiveness, empathy and assurance. The tangibles include the physical appearance of the facilities, equipment, personnel and materials used to communicate with customers. Elements within the tangibles dimension are cleanliness, space, atmosphere, appearance of server and location. Measuring element of responsibility and reliability are speed, willingness to respond, accuracy and dependability. The Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
dimension of assurance and empathy may be measured using elements of knowledge, trained professional, communications and caring.
J.D. Power and Associates provides another measure of customer satisfaction, known for its top- box approach and automotive industry rankings. J.D. Power and Associates' marketing research consists primarily of consumer surveys and is publicly known for the value of its product awards.
Here, we would be using the SERVQUAL Method to measure customer satisfaction levels.
The Servqual model is also known as the gap-model, By analyzing the four underlying gaps, insight is given into the final gap between perceptions and expectations.
Gap 1: Customers expectations versus management perceptions: as a result of the lack of a marketing research orientation, inadequate upward communication and too many layers of management.
Gap 2: Management perceptions versus service specifications: as a result of inadequate commitment to service quality, a perception of unfeasibility, inadequate task standardization and an absence of goal setting.
Gap 3: Service specifications versus service delivery: as a result of role ambiguity and conflict, poor employee-job fit and poor technology-job fit, inappropriate supervisory control systems, lack of perceived control and lack of teamwork.
Gap 4: Service delivery versus external communication: as a result of inadequate horizontal communications and propensity to over-promise.
Gap 5: The discrepancy between customer expectations and their perceptions of the service delivered: as a result of the influences exerted from the customer side and the shortfalls (gaps) on the part of the service provider. In this case, customer expectations are influenced by the extent of personal needs, word of mouth recommendation and past service experiences.
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
The five key service dimensions recognized by the model are:
Reasons for the Gaps:-
GAP 1: Not knowing what customers expect
GAP 2: The wrong service quality standards
GAP 3: The service performance gap
GAP 4: When promises do not match actual delivery
GAP 5: The difference between customer perception and expectation
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
Problems with measurement of services:
Our aim is to search for the components of service quality which determine satisfaction. Services are different from products and hence one need to consider more dimensions while measuring satisfaction achieved from a service as compared to any product.
These specific characteristics are:
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
Research design:
Sampling design:
Our sample will include 30 students of BIT, Mesra who regularly visit Hot & cold. For measuring level of satisfaction we will use close-ended questionnaire.
Research design:
Hypothesis testing is being used for the purpose of this research.
Structure of Hypothesis testing:
Whilst all pieces of quantitative research have some dilemma, issue or problem that they are trying to investigate, the focus in hypothesis testing is to find ways to structure these in such a way that we can test them effectively. Typically, it is important to:
1. Define the research hypothesis and set the parameters for the study. 2. Set out the null and alternative hypothesis (or more than one hypothesis; in other words, a number of hypotheses). 3. Explain how you are going to operationalise (that is, measure or operationally define) what you are studying and set out the variables to be studied. 4. Set the significance level. 5. Make a one- or two-tailed prediction. 6. Determine whether the distribution that you are studying is normal (this has implications for the types of statistical tests that you can run on your data). 7. Select an appropriate statistical test based on the variables you have defined and whether the distribution is normal or not. 8. Run the statistical tests on your data and interpret the output. 9. Accept or reject the null hypothesis.
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
Sample design:
Simple random sampling has been used where every item in the universe has equal chance of being included.
A subset of a statistical population in which each member of the subset has an equal probability of being chosen. A simple random sample is meant to be an unbiased representation of a group. Here a group of 30 respondents is chosen out from a large no. of customer who visits Hot & Cold. In this case, the sample is random because each respondent has a equal chance of being chosen.
Universe:
Universe will include all the regular customers of Hot n Cold, both male and female, who know about its products and services.
Sample Size:
Sample size is 30 since it is not too large to be inconvenient and not too small to fail to provide the results.
A close ended questionnaire containing 22 questions has been used to collect the data. Questions are based on the 5 attributes defined under the Servqual method.
Computing the SERVQUAL scores:
The SERVQUAL statements (in both the expectations and perceptions sections) are grouped into five dimensions, each with its range of pertinent statements as follows:
Tangibles (four items) 1. Restaurant has modern-looking equipment 2. The physical facilities are visually appealing Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
3. Employees are neat-appearing 4. Materials associated with the service are visually appealing
Reliability (five items) 5. When the restaurant promises to do something by a certain time, it does so 6. When a customer has a problem, the restaurant shows a sincere interest in solving it 7. The restaurant performs the service right the first time 8. Services are provided at the time the restaurant promises to do 9. The records are error-free
Responsiveness (four items) 10. Employees tell customers when services will be performed 11. Employees give prompt service to customers 12. Employees are willing to help customers 13. Employees are never too busy to respond to customers requests
Assurance (four items) 14. The behavior of employees instill confidence in customers 15. Customers feel safe in their transactions 16. Employees are consistently courteous 17. Employees have the knowledge to answer customers questions
Empathy (five items) 18. Restaurant gives individual attention to the customer 19. Employees give personal attention to customers 20. Restaurant understands specifics needs of its customers 21. Restaurant has customers interest at heart 22. Operating hours are convenient to all customers
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
Methods of data analysis:
T-Test For Calculation and Data Analysis
The t-test (or student's t-test) gives an indication of the separateness of two sets of measurements, and is thus used to check whether two sets of measures are essentially different (and usually that an experimental effect has been demonstrated). The typical way of doing this is with the null hypothesis that means of the two sets of measures are equal.
Calculation:
The value of t may be calculated using packages such as SPSS. The actual calculation for two groups is:
t = experimental effect / variability
= difference between group means /standard error of difference between group means
Interpretation:
The resultant t-value is then looked up in a t-table to determine the probability that a significant difference between the two sets of measures exists and hence what can be claimed about the efficacy of the experimental treatment.
Matrix Approach- Determine factors which are to be given priority for improvement:
Another key tool that has been used in this research is the Matrix Approach where direct comparison of satisfaction levels/ratings of service quality factors and the importance attached to each. These are variously called quadrant, matrix and performance-importance grid approaches, and give rise to the following types of charts. This divides the factors into four types, with those that fall into the priorities for improvement quadrant being the focus for action.
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
Interpretation:
The charts plot the importance of the 22 most important services to customer against a measure of their satisfaction with each. The average satisfaction and importance scores are shown as lines that split the charts into four quadrants. The two left hand quadrants contain services that are considered relatively less important from these services. The top right hand quadrant contains those services that are considered important and which customers are also relatively satisfied with. The bottom right shows those services users are less satisfied with but which are also relatively important these can be seen as the priorities for improvement.
Department of Management, BIT- Mesra 2011 2011 2011 2011
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
DATA INTERPRETATION AND CALCULATION
Let the null hypothesis be that there is no significant difference between the expectations and perception of the customers of HOT N COLD, i.e., H 0 : 1 = 2 . Since population variances are equal (30 respondents in our case for the measurement of both expectation and perception) the appropriate test statistic to be used is: t = [(x 1 x 2 )/s] (n 1 n 2 )/n 1 +n 2 Where, x 1 = sample mean i.e. mean of the expectation scores x 2 = mean of the perception scores s= standard deviation of the sample calculated by the formula: s = [{(x 1 -x 1 ) 2 + (x 2 -x 2 ) 2 }/ (n 1 +n 2 -2)] 1/2
From above table: S = [(1262.7+1565.47)/(30+30-2)] 1/2
S = 6.98 And hence: t = [(90.9 - 70.47) /6.98] [(3030)/ (30+30)] 1/2
t = 11.33 Degree of freedom: v = n 1 + n 2 2 = 30 + 30 -2 = 58 Now t-value for degree of freedom 58 at 5% level of significance i.e. for v=58, t 0.05 = 2.0017 The calculated value of t is greater than the table value. Our null hypothesis is rejected. Hence we conclude that there is a significant difference between the expectation and perception of services provided by HOT N COLD.
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
Matrix Approach- Determine factors which are to be given priority for improvement:
Servqual gives us the idea as to whether there is a gap between customer expectations and perception. But it does not tell us which areas need our attention most and where the efforts are not giving any result. Before we can suggest any measures to improve the customer satisfaction, we need to know the direction in which the efforts are to be applies. Servqual measures satisfaction in 22 parameters. We have then applied the Matrix Approach. Under this method, we calculate the total score of both, perception and expectation of each parameter. We then calculate its percentage from the total score. With expectation on the x-axis and perception on the y-axis, we plot all the parameters on the graph divided into four quadrants, representing: 1. Unnecessary strengths 2. Organization strengths 3. Low priorities 4. Priorities for improvement, respectively.
Department of Management, BIT- Mesra 2011 2011 2011 2011
Factor 1,2,4,9,10,11,15,17,18,19,20,22 come first this quadrant, i.e. these are Hot n Colds strength.
Factor 3, 5, 6,7,8,12,13 and 16 come under fourth quadrant. These are the areas which should be given priority in improvement.
Factor 14 is in third quadrant, hence needs low priority. Also factor 21 being in second quadrant is our unnecessary strength.
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
Conclusion: With the help of the data collected and analyzed following can be concluded: There is significant difference between the level of satisfaction expected from Hot n Cold and the satisfaction customers perceive they get. The following areas are: Hot n Cold strengths: It has modern looking equipments. Physical facilities are appealing to customers. Materials used like utensils etc. are visually appealing too. Customers believe that records, bills etc. are error free. Employees tell customer the time their order will take. Employees of the restaurant provide prompt services. Customers feel safe in their transactions with Hot n Cold. Employees have knowledge about the product and services to satisfy the customers. Customers believe that restaurant gives them individual and personal attention. Also, they are satisfied with the operating hours of the joint. Behavior of the employees does not instill confidence in customer but customers dont list this need as their priority. So this factor is our low priority. On the other hand, research shows that customers dont expect a restaurant to carry their interest at heart. But they perceive that Hot n Cold does that, so this is restaurants unnecessary strength. Points listed below are Hot n Colds priorities for improvement. If it wants to increase customer satisfaction following areas must be paid attention. Customers feel that employees are not neat appearing. They expect timely service which lacks in the restaurant. They feel employees do not look in to the queries of the customers and often fail to perform the service right the very first time. Promises made to the customers are not fulfilled on time. Customers feel that employees are unwilling to help and are busy to respond to their requests. Employees fail to be courteous to the customers.
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
Recommendations and suggestions:
Research results suggests that following measures can be taken to improve the overall satisfaction among customers of Hot n Cold.
Attention should be paid to the appearance of employees, their behavior and attitude while handling customers. Basic training program can help achieve that change.
Timely service is not being provided. Proper system should be followed for better time management.
Employees should be genuinely interested to answer any queries the customer might have.
Improving these areas would turn them into strengths, hence increasing overall efficiency.
Limitations: Small sample size may act as a constraint Misunderstanding on the part of the respondents can make the results vary Time and budget constraints were present Gap is calculated on the basis of perceived satisfaction. Real picture might not be the same.
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
REFERENCES:
Research on Applicability of SERVQUAL in restaurants: an exploratory study in a Portuguese resort by Vera Patrcio
Influence of Service and Product Quality towards Customer Satisfaction: by Dayang Nailul Munna Abang Abdullah, and Francine Rozario
Marketing Research : G.C Beri
Business Research : C.R Kothari
Business Statistics : S.P Gupta and M.P Gupta
Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
APPENDIX Questionnaire: LOW HIGH LOW HIGH Your expectation from Hot n Cold Please answer the following questions with a tick mark on both left and right side. Your experience with Hot n cold 1 2 3 4 5 Restaurant has modern-looking equipment 1 2 3 4 5 1 2 3 4 5 The physical facilities are visually appealing 1 2 3 4 5 1 2 3 4 5 Employees are neat-appearing 1 2 3 4 5 1 2 3 4 5 Materials associated with the service are visually appealing 1 2 3 4 5 1 2 3 4 5 When the restaurant promises to do something by a certain time, it does so 1 2 3 4 5 1 2 3 4 5 When you have a problem, the restaurant shows a sincere interest in solving it 1 2 3 4 5 1 2 3 4 5 The restaurant performs the service right the first time 1 2 3 4 5 1 2 3 4 5 Services are provided at the time the restaurant promises to 1 2 3 4 5 1 2 3 4 5 The records/bills are error-free 1 2 3 4 5 1 2 3 4 5 Employees tell you when services will be performed 1 2 3 4 5 1 2 3 4 5 Employees give prompt services 1 2 3 4 5 1 2 3 4 5 Employees are willing to help 1 2 3 4 5 1 2 3 4 5 Employees are never too busy to respond to your requests 1 2 3 4 5 1 2 3 4 5 The behavior of employees instill confidence 1 2 3 4 5 1 2 3 4 5 You feel safe in your transactions 1 2 3 4 5 Department of Management, BIT- Mesra 2011 2011 2011 2011
CUSTOMER SATISFACTION SURVEY OF HOT & COLD
1 2 3 4 5 Employees are consistently courteous 1 2 3 4 5 1 2 3 4 5 Employees have the knowledge to answer your questions 1 2 3 4 5 1 2 3 4 5 Restaurant gives individual attention to you 1 2 3 4 5 1 2 3 4 5 Employees give personal attention to you 1 2 3 4 5 1 2 3 4 5 Restaurant understands your specific needs 1 2 3 4 5 1 2 3 4 5 Restaurant seems to have your interest at heart 1 2 3 4 5 1 2 3 4 5 Operating hours are convenient for you 1 2 3 4 5
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Customer Service Care Success for Life -V2: Exceptional client services, support & behavior by becoming customer centric & obsessed to improve retention, engagement, experience & lifetime value