Determinants of Customer Satisfaction in the Non-Alcoholic Drink Industry - Research Proposal Example

An investigation of determinants of customer satisfaction in non-alcoholic drink industry: A case of Coca Cola Company University Student Id Course Date Executive summary This proposal is seeking to investigate the determinants of the satisfaction of the customers in the non-alcoholic drink industry while taking a case study of Coca-Cola Company. Organizations in the industry have realized the benefits of ensuring that customers are satisfied in the process of achieving competitive advantages. Coca-Cola Company is committed to ensuring that the customers are satisfied with the aim of enhancing the level of customer satisfaction. In the process of conducting the investigations, the researcher will employ the use of three research questions that can include: What is the influence of product quality on the customer satisfaction in Coca-Cola Company? What is the role of product brand image in ensuring customer satisfaction in the coca Cola Company? What are the impacts of pricing strategy on the level of customer satisfaction in Coca-Cola Company? The above research questions will be of help in guiding the researcher conduct the research in a way that can ensure accurate results are realized. Descriptive research design will be used to ensure the necessary research findings are properly described and presented. The survey will make use of a sample size of 200 respondents. Table of Contents Executive summary 2 Chapter one: Introduction 4 Background 4 Problem statement 6 Significance of the research 6 Rationale of the research 6 Research questions 6 Research objectives 7 Conceptual framework 7 Chapter two: Literature review 8 Customer Satisfaction 8 Product quality 11 Brand image 12 Price fairness 13 Chapter three: Research Methodology 15 Sampling 16 Sample size 16 Data types 17 Sources of information 17 Data collection methods 17 Ethical considerations 18 Outcomes 18 Timeline and Gantt chart 18 References 19 Chapter one: Introduction Background The purpose of this proposal is to investigate the factors that can determine the customer satisfaction in the non-alcoholic drink industry with coca cola Company as the case study. Coca-Cola Company has been operating in a very competitive industry due to the many firms that are offering similar products. However, the management of the coca cola company has been working towards improving its competitive position in the industry through ensuring customer satisfaction. The non-alcoholic industry has been very competitive as the competitors like PepsiCo and Nestle have competitive strategies geared towards improving the market share. However, Coca-Cola Company has managed to have the largest market share in the industry with more than 10% of the total non-alcoholic drinks globally (Chung, et al, 2006). The management of Coca-Cola Company has managed to develop numerous brands aimed at meeting the diverse needs of the customers in the industry. Some of the coca cola products that have remained competitive in the industry can include sparkling beverages, fruit drinks and energy drinks that have proved to be able to meet the expectations of the customers. Coca-Cola Company has ensured that its services and products are in line with the needs of the customers with the aim of making sure that the interests of the customers are met. For instance, it has invested in research and development where it has constantly been researching on the interests of the customers and the changes in the industry trends (Nandan, 2010). It is through the research that the management of the company has managed to work towards meeting the interests of the customers. Besides, the company has managed to identify the gap that has been in existence in the industry hence taking the opportunity to provide services and products that can meet the needs of the customers that are not met (Aliping, et al, 2004). Coca-Cola Company has expanded its operations in different regions globally making its presence felt global. Coca-Cola Company has invested in product differentiation with the aim of making its products unique in the industry. This has been through coming up with competitive strategies geared towards improving the level of customer satisfaction. For instance, the company has managed to adopt innovative strategies that have led to the development of innovative product features leading to customer satisfaction. The innovative features designed are aligned with the needs of the customers with the aim of enhancing the level of customer satisfaction (Ladas, et al, 2013). Meeting the needs of the customers can be attributed to the ability of the coca cola company competitiveness in the non-alcoholic drink industry. The reputation of the coca cola company products is high due to the high level of quality associated with the brand. The company has managed to survive the high competition in the industry through making its products unique and different from those of the rivals. Problem statement Coca-Cola Company faces a high level of competition in the industry as there are many firms that are entering the industry. As a result, the management has to work towards ensuring that the customers in the market are satisfied with the aim of increasing its market share. It is through customer satisfaction that the number of the loyal clients can increase making the organization competitive. Therefore, for the management to ensure it is competitive in the industry there is the need to be aware of the factors that determine the customer satisfaction (Anderson, 2004). Significance of the research This research determines the factor affecting the customer the satisfaction in the non-alcoholic industry. The research findings will be of help to the firms operating in the industry as they will be aware of the various factors that can affect the customer satisfaction in the industry. Rationale of the research The research is important to the firms operating in the non-alcoholic industry like the coca cola company. Through the research, the companies operating in the non-alcoholic industry will be in a position to develop products and services that are in a position to satisfy the targeted customers (Zaim, Bayyurt and Zaim, 2013). Research questions 1. What is the influence of product quality on the customer satisfaction in Coca-Cola Company? 2. What is the role of product brand image in ensuring customer satisfaction in the Coca-Cola Company? 3. What are the impacts of pricing strategy on the level of customer satisfaction in Coca-Cola Company? Research objectives 1. To investigate the how quality influence customers satisfaction in Coca-Cola company 2. To explore whether brand image has a role it plays in ensuring customer satisfaction in Coca-Cola Company 3. To examine the impacts of pricing strategy in the level of customer satisfaction in Coca-Cola Company. Conceptual framework Chapter two: Literature review Customer Satisfaction Researchers have found that there is a positive correlation in the existing relationship between the perceived service quality, customer expectation, and the customer’s satisfaction. Therefore, the rise in terms of service quality of the coca cola company can result in the satisfaction as well as the development of the attitudinal loyalty for the clients thus eventually retaining the potential customers of the coca cola company. Furthermore, a rise in the level of perceived service quality results into a corresponding increase in the customer satisfaction (Yang and Peterson, 2004). However, when the perceived service quality is usually low, then the customers become less satisfied. In addition, the previous researchers have found that client satisfaction greatly helps the banks to maintain long and also profitable relationships with their customers. Though it’s a bit costly in generating of satisfied and loyalty clients but this will later prove more profitable exclusively in the long run of the firm (Awamleh and Fernandes, 2005). Therefore a firm is needed to concentrate more especially in the improvement of quality services and charging of at least fair prices with the goal of customer’s satisfaction that will greatly help the firm in retaining of its customers. Satisfaction of customers is determined by some subjective factors like customer needs and emotions and also objective factors like product and service features. Applying the latter to the banking industry, there exist numerous studies examining attributes that are expected by clients regarding the satisfaction of customers. Eid in the year 2011 eventually found out that security, cleanliness, the value of money and the staff’s courtesy determines the satisfaction level of customers. Again in that same year 2011, Eid also revealed out that some factors such as; Conducive atmosphere and comfort, the convenience of location, prompt service, safety and security and also employee’s friendliness are very much important. In the year 2003, Ekinci stated that employee attitude is much needed in process of influencing the satisfaction of customers. In the year 2003, a study which was conducted by Ekinci showed that in customer’s satisfaction the main determinants are employee’s behavior, cleanliness and also timeliness. Liao, Chen, and Yen, (2007) noted that there are other three top factors which determine the satisfaction of customers and these are; staff quality, product quality and also value. Currently, there has been a lot of interest concerning the idea of the consumer satisfaction. The latter is a very vital aspect for every existing firm and it needs very careful attention. Moreover, it is because of the increased importance of the truth fact that the great contentment of the customers leads to a strong position in the marketplace with great competition and rivalry by means such as; declining price elasticity, falling business costs, lessening failure costs and also by reducing all the expenses of again acquiring new customers. The issue of consumer protection is of great importance to consumer researchers. For all those organizations wishing to create and maintain a competitive advantage in the existing competitive scene, they must put in mind that customer satisfaction is a vital consideration for their success (Deng, et al, 2010). Expectations, disconfirmation of expectations, performance and also equity are some of the established determinants of customer satisfaction. For customers to be well satisfied the actual performance outcome is expected to exceed expectations that are positive disconfirmation, and dissatisfaction occurs when the expectations now exceed the performance outcome (Li, Ye and Law, 2013). Though the assessment of customer protection is likely most to be based on a very wide range of issues, possibly there can be many factors of satisfaction of the customers as the extent underlying measurements of satisfaction are inclusive rather than precise. Furthermore, it was mentioned that there exist variations in purchasing criteria and among different gender and age groups. That is male mostly treated reliability and brand loyalty as their key factors while females treated expert image and quality as very important. Also, service frequency, reliability, convenience and also responsiveness are variables of service quality considered vital in customer protection. In the factor quality, this means doing the right thing right and it’s also a complex process of measuring consumer protection of service quality (Liao, Chen and Yen, 2007). Many studies have also helped in the increase of understanding and measurement of the service quality. In a competitive scenario, for you to gain an advantage over your fellow competitors then you should measure consumer satisfaction and evaluate it regularly. With more considerations on consumer levels, many local taxi companies may be a success in maintaining the current growth and also gaining of larger market shares in comparison with their common competitors. The loyalty of the customers is actually the major result of the customers being satisfied and it is usually measured in numerous ways. Moreover, the term customer loyalty refers to the held guarantee that customers will re-buy or even re-patronize a certain product or a service from a company because of its high quality in a consisted way (Morgeson, et al, 2011). Also, the term customer loyalty can get defined as the relationship that exists between a customer and the seller after transacting for the first time. The behavior of customers is mostly influenced by both sociological and also the psychological factors. Coca-cola Company is the world’s biggest manufacturer of beverages and soft drinks. Moreover, the Coca-Cola Company is usually among the brands which are valuable and also well-known in all the parts of the world (Gustafsson, Johnson, and Roos, 2005). However, even though the company still manufactures beverages, it is actually the business which has deeply penetrated in the lives of the customers. Importantly, the coca cola brand by itself it symbolizes its good taste. Furthermore, apart from the impact of famous which the coca cola Company has established, it has still proceeded in delivering its quality services to the consumers. Product quality The quality of products is important in determining the level of satisfaction. The customers in the non-alcoholic sector are looking for the products that can meet the needs through being of high quality (Verhoef, et al, 2009). Like in any market the quality aspects are important in setting an organization apart from the others in the market. The organizations that fail to offer high-quality products are likely to lose their market share as they fail to meet the expectations of the customers. In any market, the level of satisfaction is determined by the ability to meet the expectations of the customers. The level of quality is what makes the companies in the non-alcoholic industry competitive as the competitiveness of organizations solely depends on the ability to offer satisfying products. The product quality is the overall impression of the customers that make an organization either inferior of superior (Eshghi, Haughton and Topi, 2007). The quality expectations and the quality level delivered to the customers is what determines the satisfaction of the customers. Sometimes it is held important to make sure that the level of quality is communicated to the customers to avoid over expectations that can result in dissatisfaction. The ability of the organization to surpass the expectations of the customers can crucial in making sure that customers are always satisfied hence making clients repeat customers. Some companies in the industry like coca cola are looking for the best ways of making the customers loyal through offering high-quality products. Providing poor quality products is the major case of customer dissatisfaction in the non-alcoholic industry as customers are looking for the products that can meet their needs (Gustafsson, Johnson, and Roos, 2005). Many of the companies in the industry have invested in market research with the aim of assessing the changes in the interests of the customers to design products that can meet their needs. Engaging the customers in the process of developing the products can be important in the process of ensuring that the products developed can be in a position to meet the needs of the customers. Brand image The image of the company brand in the non-alcoholic industry is vital in determining the customer satisfaction. The brand image that shows the commitment of the organization to make sure that the needs of the customers are met is likely to deliver products that are satisfying. The brand image in the industry is developed by the focus of the management on the needs of the customers hence developing products that are aligned with the preferences of the targeted consumers. The company identity in the market is determined by the brand image that communicates to the customers the focus of the company on their needs. Improving the brand image of an organization in the industry is important in making sure that the customers are satisfied (Gruca and Rego, 2005). The ability of the brand image to influence the level of satisfaction is primarily associated with the fact that good brand image communicates the commitment of the company to ensure that customers are satisfied. Besides, the brand image has some effects on the consumer perception hence determining the consumer behavior. Developing a positive image of the brand contributes a lot to the level of customer satisfaction as it improves the experience. Some customers look for products that have a good brand image that is in line with their personality. Considering the psychological factors that affect customer choice in buying decision, aligning the products with the personality of the targeted customers is crucial in determining the customer satisfaction (Saad and Conway, 2006). The brand image develops the link between the image of the customer concerning the product and the ability to meet their needs. Considering the personality needs of the customers brand image is important in meeting these needs hence ensuring satisfaction. The coca cola company has been working towards developed products that have a brand image that can help in meeting the needs of the customers. Considering the personality needs of the targeted consumers can be important in developing products that can be in a position to meet their needs. Price fairness The previous research has lot extensively studied the issues of pricing and customer satisfaction despite great role played by product prices in the industry. Many of the customers in the non-alcoholic industry are looking for products that are fairly priced conspiring the prices of the similar products in the market. As a result, the pricing strategy adopted in an organization is important in determining the satisfaction of the customers. The price fairness contributes to the satisfaction as the organizations need to align the value of the products with the prices. The perception of the consumers towards the pricing strategy adopted is crucial in determining the fairness of the pricing strategy adopted (Qin and Prybutok, 2008). In any industry price need to be directly proportional to the value that the customers are likely to realize from the products. The firms in the industry need to research on the interests of the customers concerning the product prices before formulating the pricing strategy. Considering the interests of the customers can be important in developing a pricing strategy that can be considered fair by the customer hence helping in ensuring customer satisfaction. Many companies in the industry are now looking for the best way of ensuring that their pricing strategies are fair. This has been possible through coming up with strategies geared towards lowering the costs associated with the production. As a result, many organizations in the non-alcoholic industry are now automating most of their operations to achieve efficiency hence able to lower costs of production (Eshghi, Haughton and Topi, 2007). For instance, Coca-Cola Company employs capital intensive mechanisms in production leading to the increased efficiency. Achieving cost advantages in the industry can only be possible through achieving efficiency in production making the organization able to offer low prices that are fair to the customers. Chapter three: Research Methodology A descriptive research design will be used in this research to ensure an in-depth study of the phenomenon under research. It can be important in providing the necessary descriptions concerning the factors affecting the satisfaction of the customers in the non-alcoholic industry. The descriptive research design will help in making the researcher able to give the necessary details concerning the factors affecting the level of satisfaction of customers. It gives the necessary room to make use of the qualitative and quantitative research in investigating the factors that are likely to determine the level of satisfaction (Gruca and Rego, 2005). The researcher will make use of qualitative research to present the research findings that cannot be expressed in figures. Also, the researcher will employ the use of quantitative research to present the research figures and other statistical values. Sampling The research will make use of sampling method in the process of selecting the sample that will represent the entire population under research. The researcher cannot manage to collect data from all the customers in coca-cola Company hence the need for selecting a small population to act as the representative. The rationale for sampling in research can be associated with the costs implication in terms of the time and money needed to conduct research on the whole population. The customers of Coca-Cola Company are so many hence conducting the research on all the customers can not be possible. The assumption that will be embraced by the researcher is that all the customers of Coca-Cola Company are aware of the factors that can make them satisfied. Besides, the researcher will assume that all the customers under research have been using the products of both the coca cola and its rivals in the non-alcoholic industry. Sample size Random sampling technique will be used by the researcher to select the sample that will represent the entire population. This sampling technique is important in the process of ensuring that all the customers of Coca-Cola Company have equal chances of being selected to represent the population under research (Ekinci 2003). As a result, the chances of bias in selecting the customers to form part of the sample size will be eliminated. The researcher will use 200 respondents as the sample size. This sample size will be enough to investigate the determinants of the customer satisfaction in the non-alcoholic drinks industry. It will ensure that all the customers in the non-alcoholic drinks industry are represented as the researcher cannot conduct a survey in all the customers in the industry. Data types Two types of data will be used by the researcher that include primary and secondary data. The primary data will be obtained using questionnaires that will be designed and distributed to the 200 respondents to provide their opinions concerning the customer satisfaction in the non-alcoholic drinks industry. This data type is important as it is free from bias and any form of distortion as it is first hand hence ensuring reliable research findings. Secondary data type will include books, journals, article and magazines that will be used as a support to the information obtained from the primary data. Sources of information The primary source of information will be the response to the questionnaires by the respondents. The 200 respondents will be used in the process of as the source of the relevant information that will be used by the researcher. The respondents will be encouraged to give their opinions concerning the customer satisfaction in the industry using coca cola as the case organization. Besides, the researcher will supplement the obtained information using secondary sources but with caution as secondary sources are subject to distortion. Data collection methods The researcher will make use of questionnaires to collect data concerning the customer satisfaction in the nonalcoholic drinks while taking coca cola Company to represent other firms in the industry. The questions on the questionnaires will be framed in a way that can make sure that the relevant information concerning customer satisfaction is collected. The researcher will issue the questionnaires to the customers where they will fill and give back the questionnaires. To ensure relevance of the information, the researcher will help the customers understand the questions before giving their responses. Ethical considerations The potential ethical challenge includes avoiding bias in the data collection process. The researcher will guarantee the respondents that the information collected will only be used for the research purposes. Besides, the researcher will remain neutral where he will not influence the customers in the process of making their responses to the questions. The respondents will not be forced but they will be requested to provide their opinions that will help in establishing the factor affecting customer satisfaction. Outcomes I expect to be given the permission to proceed and conduct the research on customer satisfaction in Coca-Cola Company. The research findings will be of help to the players in the non-alcoholic industry as I will make the companies in the industry aware of the determinants of customer satisfaction in the industry. Timeline and Gantt chart Task Wk 1 Wk 2 Wk3 Wk 4 Wk 5 Wk6 Wk 7 Wk8 Writing proposal Approval of the proposal Data collection Data analysis Reporting the draft Feedback from the supervisor Revising the report Submitting the final copy References Aliping‐McKenzie, M., Linden, R.W.A. and Nicholson, J.W., 2004. The effect of Coca‐Cola and fruit juices on the surface hardness of glass–ionomers and ‘compomers’. Journal of Oral Rehabilitation, 31(11), pp.1046-1052. Anderson-Fye, E.P., 2004. A “Coca-Cola” shape: Cultural change, body image, and eating disorders in San Andres, Belize. Culture, Medicine and Psychiatry, 28(4), pp.561-595. Awamleh, R. and Fernandes, C., 2005. Internet Banking: An empirical investigation into the extent of adoption by banks and the determinants of customer satisfaction in the United Arab Emirates. Chung, Y.W., Han, D.S., Park, Y.K., Son, B.K., Paik, C.H., Jeon, Y.C. and Sohn, J.H., 2006. 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