Customer Satisfaction

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Chapter 1

THE PROBLEM

Background of the Study

Filipino’s have been given a chance to finally choose groceries business and minimart across the country. One of the pioneer groceries in town is the Consumers Minimart Inc. formerly named Caragan. Ever since Consumers Minimart Inc. experienced a lot of competitors on their times, minimart is still existing and alive.At this time many establishments exist like CSI, Royal Mall, Save More, but the Consumers Minimart Inc. is still having a profit and their loyal customers were always remained.Bayambang is one of the town with the largest number of barangays in Pangasinan, a largest place to establish a business. Business opportunity is increasing like mini grocery market, malls, fast food chains, banks, water refilling station and other small and big enterprises. This business establishment where very profitable and have impact to the customers especially here, is the groceries stores because customer or people can get or buy their daily needs into this kind of business, and one of that business is the Consumers Minimart Inc.Consumers Minimart Inc. is owned and manage by Jovita De Leon. It was established last March 18, 2010. They established their business in Bayambang because this place is very promising town, has 77 barangays and there is a lot of nearby town, and prospect customers such as Bautista, Alcala, Urbiztondo, and Malasiqui.Caragan was became Consumers Minimart Inc. because of being long term industry and the owners were became stockholders. The standard monthly income has been reach also by the said business. The formerly competitors were Lita’s grocery, old Royal mall stores and some local stores located at the market of Bayambang.But there are things that this business needs to improve, including the satisfaction of the customers. Consumers Minimart Inc. need additional effort in making their service much better including in queueing system or waiting time, delivery service, visual merchandising and physical set-up, and add to the strategies of the business. This will be used as strategy to makes their customer more satisfy in their service, it will add to have more customers and become more profitable, more improvement in their services. Consumers Minimart Inc. also need to improve their marketing strategy because it is a part of over all plan of the said business by establishing another branch in the province of Pangasinan for expansion for them to become more popular in terms of selling diffirent kinds of product.

According to Peng Shao and Zeliang Sun (2012), Groceries today have to deal with the more dynamic and competitive environments than before. The frequent mergers and acquisitions among the groceries suppliers and retailers made industry structure strongly concentrated and competitive.And the limited retail stores are being increasingly standardized and homogenized. Facing the Bayambang market which only has 96,609 population, the three major competitors grocery, CSI, Savemore and Royal Mall need to differentiate themselves. Thus maintaining long-term relationship with customers is important, in order to keep their good organizational performance and profits. Identifying the key attributes influencing customer satisfaction during customers’ purchasing in their stores is critical.

Groceries need to explore their resources and internal capabilities, so that they can make proper strategies to remain competitive. Unique attributes and sub-attributes are the important resources and internal capabilities of each grocer, which can help grocer to differentiate themselves from its competitors, and maximize the level of customer satisfaction.

Customer satisfaction means that customer needs are fulfilled when doing the purchases. So the groceries must understand what the customers want and provide customers with what they need. A large number of studies have demonstrated a positive relationship...
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