ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY IN BERGER PAINTS BANGLADESH LIMITED
by
Fahad Hossain ID: 0921338
An Internship Report Presented in Partial Fulfillment Of the Requirements for the Degree Bachelor of Business Administration Administration
INDEPENDENT UNIVERSITY, BANGLADESH May 2013
ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY IN BERGER PAINTS BANGLADESH LIMITED
by
Fahad Hossain ID: 0921338
has been approved May 2013
_______________ _______________________ _______________ _______
Mr. Abu Bakar Emran Salahuddin Lecturer School Of Business Independent Independent University, University, Bangladesh
Letter of Transmittal th
9 May, 2013 Mr. Abu Bakar E mran Salahuddin Salahuddin Academic Supervisor Lecturer School of Business Independent University, Bangladesh.
Subject: Submission of internship report on- Antecedents of Customer Satisfaction and Loyalty in Berger Paints Bangladesh Limited.
Dear Sir, With due respect, as a student of Independent University, Bangladesh, I have prepared my internship report on “ Antecedents of Customer Satisfaction and Loyalty in Berger Paints Bangladesh Limited”. Limited”. I have tried my level best to follow your guidelines in every aspect of planning planning of this report. I have also collected what I believe to be the most important information information to make this this report specific specific and accurate as possible. possible. I hope you you will appreciate appreciate my effort. I have done the study in a complete form and I have done my level best to conduct this in a professional manner. It is true that, it could have been done in a better way if there were no limitation. I hope you will assess my report considering the limitations of the study.
Yours sincerely,
------------------------Fahad Hossain Id: 0921338
ACKNOWLEDGMENT
The successful completion of this report might never be possible in time without t he help of some person whose inspiration and suggestion suggestion made it happen. First of all I want to thank my faculty advisor Mr. Abu Bakar Emran Salahuddin, for helping me completing complet ing my internship report on “Antecedents “Antecedents of Customer Satisfaction and Loyalty in Berger Paints Bangladesh Limited. ”
I would also like to thank Mr. Shahariar Ferdous, Category Cat egory Manager and my supervisor super visor of Berger Paints Bangladesh Limited and my colleagues specially Md. Tausiff Hossain who helped me by providing informative instruction. I was closely attached with them during my internship tenure. Without them this project would have been very difficult to complete.
Finally, my special thanks go to the whole marketing department of Berger Paints Bangladesh Limited for their continuous support, inspiration and giving me the opportunity to deal with different work situations during the period of my internship.
Table of Contents
SERIAL
PARTICULARS
PAGE
NO.
NO
01
1.0 Introduction
1
02
2.0 Statement of the problem
2
03
3.0 Purpose of the study
3
04
4.0 Research timeline
4
05
5.0 Limitations
4
06
6.0 Review of literature
5
07
6.1Product 6.1 Product cost
5
08
6.2Product 6.2 Product quality
5
09
6.3Delivery 6.3 Delivery performance
7
10
6.4Supplier 6.4 Supplier
8
11
6.5Time-to-market 6.5 Time-to-market
8
12
6.6Service 6.6 Service support
9
13
6.7 Personal Personal Interaction Interaction
10
14
6.8 Customer Customer satisfaction
10
15
7.0 Framework
12
16
8.0 Questions and Hypothesis
13
17
9.0 The Research Design- Methods and Procedures
14
18
9.1 Research 9.1 Research design
19
9.2 Sampling (sample unit, Sample size, Sample
20
9.3 Instruments 9.3 Instruments
15
21
9.4 Data 9.4 Data Collection, types of data and sources
16
22 23
9.5 Data Analysis/ Result Analysis 9.5.1 Frequencies 9.5.1 Frequencies analysis
14
procedure)
14
16 16
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
24
9.5.2 Crosstabs Analysis
16
25
9.5.3 Correlation analysis
17
26
9.5.4 Relationships between Product Cost and Customer
18
satisfaction 27
9.5.5 Relationships between Product quality and Customer
18
satisfaction 28
9.5.6 Relationships between Delivery Performance and
19
Customer satisfaction 29
9.5.7 Relationships between Supplier and Customer satisfaction
20
30
9.5.8 Relationships between Time To Market and Customer
21
satisfaction 31
9.5.9 Relationships between Service Support and Customer
22
satisfaction 32
9.5.10 Relationships between Personal Interaction and
23
Customer satisfaction 33
9.5.11 Reliability Analysis
24
34
10.0 Discussion
25
35
11.0 Significance of the Study
26
36
11.1 Business significance
26
37
11.2 Academic significance
26
38
11.3 Implication for future research
26
39
12.0 Recommendation
27
40
References
28
41
Appendix A- Questionnaire
31
42
Appendix B- SPSS result analysis tables
33
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
LIST OF FIGURES SERIAL
PARTICULARS
NO.
Figure
PAGE NO
Framework of Research Variable and their Relationships
12
Five-point of liker type scales
15
The classification of correlation coefficient
17
Correlation matrix
21
A commonly accepted rule of thumb for describing internal
24
1.0 Figure 2.0 Figure 3.0 Figure 4.0 Figure 5.0 Figure 6.0
consistency using Cronbach's alpha Reliability analysis result
25
Executive Summary
Berger, the market leader in the Bangladesh paint market, is one of the oldest names in the global paint industry. The company is operating in the paint industry for almost two centuries. It has its origin in the year of 1706 and from then on the company is operating with strong adherence to quality and social responsibility. Initially, Lewis Berger, a German national, founded dye & pigment making business in England. Lewis Berger & Sons Limited grew rapidly with a strong reputation for innovation and entrepreneurship culminating in perfecting the process of making Prussian blue, a deep blue dye, a color widely used for many European armies' uniform. Production of dyes & pigments evolved into production of paints & coatings, which till today, remains the core business of Berger. In this competitive market environment different companies are coming with different products but the question is what unique thing Berger Paints had that people are always satisfied with their product, not the others company‟s product. Berger Paints has done so many researches to understand the level of customer satisfaction. They are already has a good brand position in the consumer‟s mind. But this research will help the company to measure the present level of customer satisfaction and loyalty in Berger paints. This research investigates the level of customer satisfaction and loyalty of among the users, and what are the different influencing them. In this research the researcher takes seven independent variables (Product cost, Product quality, Delivery performance, Supplier, Time to market, Service support, and Personal interaction) and one dependent variable (Customer satisfaction). Therefore the researcher want to find out what are the main reason (Product cost, Product quality, Delivery performance, Supplier, Time to market, Service support, and Personal interaction) that effect in consumer mind (Customer satisfaction) to prefer Berger Paints. The study will be characterized as a co-relational study and descriptive research. The researcher use simple random sampling under the probability sampling method and used structured questionnaire for collecting information. The question will be distributed via a convenience and the researcher will use probability sampling. This research used SPSS 17.0 because it is such a statistical data analysis tool that offers greater flexibility in data analysis and visualization. According to correlation and reliability analysis Product cost, Product quality, Delivery performance, Supplier, Time to market, Service support, and Personal interactions are related with the reason of customer satisfaction and loyalty of Berger Paints.
ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
1.0 Introduction
Berger Paints is one of the oldest names in the paint industry, yet, it is one of the most technologically advanced companies in the country. It is constantly striving for innovating superior quality products and services. With more than 250 years of rich heritage, Berger manufactures world class paints for all kinds of substrates and also provides unparallel services. Berger‟s inception was laid out in 1760 by a German national named Louis Berger, who started dye and pigment making business in England. Louis involved his family into the business and eventually changed the status of the company to Louis Berger and Sons Limited. The company grew and expanded rapidly with a strong reputation for excellence in innovation and entrepreneurship. In the initial years, Louis successfully refined the process of manufacturing Prussian blue, a deep blue dye. This dye was widely used for the uniforms of many European armies of that time. Production of dyes and pigments evolved into production of paints and coatings, which till today, remains the core business of Berger. Th e company grew rapidly, by establishing branches all over the world and through mergers and acquisitions with other leading paint and coating manufacturing companies. Berger Paints started „painting‟ Bangladesh since independence. Over the past few decades, Berger has evolved and transformed itself in becoming the leading paint solution provider in the country with a diversified product range that caters to all your painting needs. With its strong distribution network, Berger has reached almost every corner of Ban gladesh. Nationwide Dealer Network, supported by 8 Sales Depots strategically located at Dhaka, Chittagong, Rajshahi, Khulna, Bogra, Sylhet ,Comilla, and Mymensingh. Berger's one of the prime objectives is to provide best customer support-connecting consumers to technology through specialized services like free technical ad vice on surface preparation, color consultancy, special color schemes etc. To bolster customer satisfaction, Berger offers Home Decor Service from where one can get an array of services pertaining to painting. Apart from business, Berger Paints has added another dimension to its social responsibilities by contributing to the well being of the autistic children in Bangladesh from 2009. Berger P aints Bangladesh Limited has been promoting the young and creative talents of the country through Berger Young Painters‟ Art Competition (BYPAC), Berger Award for Excellence in Architecture (BAEA),
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Berger Award Programme for the Students of Architecture of BUET (BASAB), Scholarship Programme for the students of Architecture Discipline, Khulna University. Berger grew rapidly by establishing branches all over the world and through merging with other leading paint and coating companies. Today, Berger is one of the leading companies in the global paint industry. Berger offers all kinds of painting solutions in decorative, industrial or marine segment for both decorative and protective purpose Berger Paints started its sailing into the sea of Bangladesh from pre-liberation era, to b e precise in 1950. The main business flourished in the post liberation phase. In Bangladesh the major milestones of Berger Paints are given below: 1950 – Started operation in Bangladesh by importing Paint from Berger UK. 1970 - Establishment of Chittagong Factory. 1980 – Named as Berger Paints (BD) Ltd. from Jenson & Nicholson (J&N). 1991 – BMRE in Chittagong Factory. 1995 – Establishment of Double Tight Can Manufacture Plant. 1999 – Establishment of Most Modern Sate-of-the-Art Paint Production Plant in Dhaka. 2002 - Construction of own building for the Corporate Office in Dhaka. 2004 – Establishment of Powder Coating Plant. 2.0 Statement of the problem
Bangladesh paint market is experiencing a good growth of 8-10% per annum consistently in the late 90s and early years of this century mainly because of a boom in real estate development. Besides, this trend in growth of demand is likely to persist or may even witness an upswing in the future as the country moves from rural base to urban base project (Real estate). There is a huge possibility that paint industry will further thrive because only 39% of the target market are currently using paint and others are progressing to get into th e trend of using paint instead of t he traditional way of whitening their dear houses. According to the cement manufacturers of Bangladesh, the cement market is also growing at around 4%, which correlates quite well with
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
our paint market growth data. The limited growth up to now in industrialization and per capita income in Bangladesh has restricted the size of the paint market. However a good number of local paint manufacturing companies (40 organized and at least 50 more in the informal sector) have been operating in this small market. Quite a few of these companies are producing paints of internationally acceptable quality and very importantly, the installed single shift production capacity of the local paint companies is double the present local market demand. Berger, the market leader in the Bangladesh paint market, is one of the oldest names in the global paint industry. It has its origin in the year of 1706 and from then on the company is operating with strong adherence to quality and social responsibility. Initially, Lewis Berger, a German national, founded dye and pigment making business in England. Lewis Berger and Sons Limited grew rapidly. With a strong reputation for innovation and entrepreneurship culminating i n perfecting the process of making Prussian blue, a deep blue dye, a color widely used for many European armies' uniform. Production of dyes and pigments evolved into production of paints and coatings, which till today, remains the core business of Berger. Today, Berger offers all kinds of painting solutions in decorative, industrial or marine segment for both decorative an d protective purpose. The two main competitors currently facing Berger Pains are Asian Paints and Elite Paints. At the moment, the advantage Berger is experiencing is the generic nature of Color Bank. Through survey, the most common finding was th at when people generally visit outlet, most of them prefer Berger Pains for their good product quality and higher brand image in spite of Elite Paints has similar color variety, and it‟s providing numerous shades. Because they can not maintain proper delivery. 3.0 Purpose of the Study
The purpose of this study is to find out the customer satisfaction level and loyalty among the Berger paint users. In this competing market what variety of product Berger paints are providing to their customer is a very important issue. Research has find out how strong relationship Berger maintain with their customer and how they are satisfying their customer b y providing value. Therefore the researcher purpose is to find out, is there any significant relationship between Berger paints and customers perception towards using Berger products.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
This report is mainly based on the answers of the questionnaire survey and some in depth interview. 4.0 Research Timeline
2013 March------------------------------- Research Proposal Writing 2013 April--------------------------------- Literature Review 2013April--------------------------------- Development of Conceptual Framework 2013April--------------------------------- Data collection procedure 2013April--------------------------------- Data analysis and interpretation of the findings th
2013, 25 April -------------------------- Draft report Submission th
2013, 9 May----------------------------- Submission of research paper
5.0 Limitations
Every research has some limitations. This research also has some limitations. The study was limited by a number of factors. Firstly, researcher faces Time limitations, three months is too short period for completely and comfortably integrating oneself with a company and the same time conduct and completes an anal ytical research. Secondly sample size was very small to present the proposed scenario and people here in our society are not familiar with marketing research and as a result when approached they feel agitated and disturbed, most of them thinking that we are trying to sell them something. Most of them think that I am a Sales representative. Thirdly the research was limited only a specific area in Dhaka city. There might be some sampling error because of convenience sampling process. Some of the respondent did not properly answer the questions due to shortage of time.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
6.0 Review of Literature 6.1 Product cost:
Berger makes it possible to bring the best painting solutions a t affordable prices. They have different category of product with different price. Product costing is defined as a process of estimating the cost of a final product at design stage (Sheldon et al, 1991). Ulaga and Eggert (2006) point out that manager identify direct product costs, i.e. the price charged by a supplier, as the key relationship cost-driver. With regard to the effect of price on customer satisfaction in the contex t of manufacturing firms, Fynes and Voss (2001) found both constructs to be inversely related. On the other hand, we found no studies with a direct influence of price on customer lo yalty. Whitney (1987) pointed out the predominant percentage of manufacturing cost of a product is determined at product design stage. Therefore, estimating cost at design stage, i.e. product costing, is o ne of the vital enablers for accurate pricing in customer negotiation. Moreover, product costing is able to discover the linkages between design specifications and cost factors and then find the method to reduce cost at early stage. Product costing aims at estimating the cost of a product without complete information of process plan or other production data. There are a number of research perspectives in industry and academia. Alexander et al, (2002) narrowed these methods down to three categories: analogous method, statistical method and analytical method. Analogous methods suggest that similar products have similar costs. These methods describe similarity as the level of correspondence of relevant characteristics (Alexander et al, 2002). The degree of similarity in function or geometry is computed as the distance between two similar items. One of the drawbacks of analogous methods is the limitation of the number of characteristics. In addition, the information provided to search for a similar product at early design stage is insufficient and the values of some characteristics may be missing. Moreover, part o f overhead cost (like inventory cost) is not related with the specifications of product. Therefore, analogous methods are only suitable to estimate the costs related with product features. 6.2 Product quality:
Berger Paints Produces decorative, industrial, marine, coatings along with binders/different polymers (for paints and textile industry). The factories employ modern technologies for the
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
purpose that includes automatic and semi-automatic production and filling lines. Production and quality testing machine from famous makers in Asia, Europe and America ensures precision of operations and enviable quality of the product. Raw materials of consistent quality from renowned brands are being used and the best of the professionals in the industry oversee the production and quality assurance operations. People, mostly engineers and chemists, who are considered as the most valuable resources at Berger. Berger thus ensures manufacture of the best quality products at most competitive cost employing green manu facturing techniques. There are some studies that found a positive effect of product quality on customer satisfaction (Selnes, 1993; Janda et al, 2002; Chumpitaz and Paparoidamis, 2004), whereas the effect on customer loyalty clearly lacks empirical support in the business-to-business context. In consumer-based studies the positive link between product quality and loyalty has mostly been confirmed for behavioural loyalty (Devarajet al, 2001; Espejelet al, 2007). The transcendent definition of quality is derived from philosophy and borrows heavily from Plato‟s discussion of beauty. From this view point, quality is both absolute and universally recognizable. According to Pirsing (1992, p.73 ), defining quality as excellence means that it is understood “ahead of dimension as a direct experience independent of and prior to intellectual abstractions. The product based approach has its roots in economics. Differences in the quantity of someone ingredient or attribute possessed by the p roduct are considered to reflect difference in quality (Garvin, 1984). For example, better quality lines have a higher thread count. This view of quality, based on a measurable characteristic of the product rather than on preferences, enables a more objective assessment of quality. The manufacturing based ap proach has its roots in operations and production management. Here qu ality is defined as conformance to specious (Crosby, 1979). Quality of conformance relates to the degree to which a product meets certain design standards. This definition has an internal focus, in contrast to the external focus of the user based approach, and quality is considered as outcome of engineering and manufacturing practices. It is the basis for statistical quality control. Deviation from design specifications results in inferior quality, and consequently increased cost due to scrap, rework or product failure. This definition allows for the precise and objective measurement of qu ality, although it has limited applicability for service.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
6.3 Delivery performance:
Berger always maintains proper delivery performance to meet customer deman d. Because the consumers don't care if a supplier or distributor had a problem. "If something goes wrong in the supply chain, it ruins things for the consumer/end user". Their product delivery is always accurate. Berger has a strong distribution channel and logistic support all over the country to maintain proper delivery. Delivery performance, encompasses suppliers‟ ability to “meet delivery schedules (on-time delivery), adjust to changes in delivery schedules (flexibility) and consistently deliver the right parts (accuracy)” (Ulaga, 2003, p. 684). Compared to product quality, empirical support for delivery performance as an antecedent of satisfaction and loyalty is even more modest. The order-to-delivery (OTD) process is one of the most important processes to manage. It can be defined as consisting of four sub- processes; customer‟s ordering, supplier‟s delivery, logistics service provider‟s (LSP‟s) transportation, and customer‟s goods receipt sub-process (Mattsson, 2004). The performance of an OTD process concerns traditionally lead time and on -time delivery. In a logistics context, lead time is typically defined as the elapsed time between recognition of the need to order and the receipt of goods (Blackstone and Cox, 2005). On-time delivery is the extent to which the lead time, and as a consequence the delivery date and the delivered quantity corresponds to what has been confirmed (e.g. Forslundand Jonsson, 2007; Kallio et al, 2000). There are, however, other performance dimensions that in order-by-order environments also may be important: lead time variability, lead time adaptability and lead time flexibility. The external view considers that the internal perspective is insufficient to develop all the company‟s capabilities since some of them are created and strengthened by inter organizational relationships with other firms in the same network. This analysis perspective suggests that a company‟s critical resources can be expanded or constructed beyond the confines of the firm, and be integrated in inter-business routines and processes (Dyer and Singh, 1998), by being jointly directed at greater customer satisfaction (Zhao and Stank, 2003). In this context, outsourcing finds new theoretical support by being developed from a strategic perspective, that is, with the aim of obtaining a sustained competitive advantage. That requires relationships to be maintained within a framework of long-term cooperation, with suppliers considered to b e partners (Pfohl and Buse, 2000).
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
6.4 Supplier:
A consumer products company remains profitable only if it has the right product at the right price in the right place at the right time. However, getting these stars to line up only happens when "the entire supply chain works as one. When BERGER places its logo on a product, the logo represents "a seal of quality." Protecting that quality makes BERGER responsible for its entire supply chain. Ulaga and Eggert (2006) identify supplier know-how and its capacity to improve the timeto-market as two benefit dimensions in the area of “customer operations”. Supplier performance has been positively linked to manufacturing firm performance (Shin et al, 2000). If performance is affected by the quality of the relationship, then in order to sustain performance, the relationship must be sustained. Fundamentally, the on-going relationship between manufacturer and supplier is not important for its own sake. Rather, a healthy relationship is important because it encourages more information sharing, better communication, and more trust, each o f which can improve planning, coordination, problem solving, and adaptation (Fynes et al, 2005), and thus manufacturing firm performance. It is important to understand how manufacturers react to supply failures and recoveries because these reactions may be the antecedents to significant costs. A supply failure may induce the manufacturing firm to invest in improving supplier capability up to required levels because supply failures increase transaction costs (Forker, 1997; Krause, 1999). Lacking trust in supplier reliability the manufacturing firm may expend resources and monies to identify back-up suppliers, or add slack (e.g. inven tory, longer lead times) to the system. A critical supply failure, or a series of failures, can lead to potential relationship disintegration (Ellram, 1991; Bowersox and Closs, 1996). 6.5Time-to-market:
Maintaining liaison with nationwide dealers and also ensuring that Berger products are available everywhere in the country. Marketing Department communicates internally on how to bring new product and innovative painting solutions to meet the needs of various wants. Linking consumers' needs with the capacity of fulfilling them, the marketin g department supervises Home Decor centers throughout the country. So Berger‟s products are available in the market.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Time-to-market is the strategy of focusing on reducing the time to introduce new products to market. According to Whitney, (1990), the process is self-contained with little if no outside interference. The absence of manufacturing involvement, even in writing the manufacturing process plan, increases the possibilities for redundant activities and reduces the chances for getting the optimal design in shorter time. It has b een found that 80-90 per cent of the time-tomarket equation is absorbed in the design phase. Reducing this time is central to getting products earlier to market. Further, 80per cent of a p roduct‟s cost is committed during the design phase, whereas design only absorbs 8 per cent of incurred costs. The benefits of bringing produ cts to market quicker than competitions are extra sales revenue and earlier breakeven, extended sales life, premium price giving bonus profits from being first, early introduction means “hooking” customers before competition and thus developing their lo yalty, and leading to increased market share. 6.6 Service support:
Berger has online customer support system to get advice from experts about their product. They have care line to get direct support and any information regrinding their product. Customer service is the ability to provide a service or product in the way that it has been promised. Gronroos (200, p.46) defined service as, “A service is a process consisting of a series of more or less intangible activities that normally, but not necessarily always take place in interactions between the customer and service employees or physical resources or goods and/or systems of the company, which are provided as solutions to customer problems”. Customer service is the provision of service to customer before, during and after a purchase. According to Turban et al. (2002), “Customer service is a series of activities designed to enhance the level of customer satisfaction-that is, the feeling that a product or service has met the customer expectation.” From the point of view of an overall sales process engineering effort, customer service plays an important role in an organization‟s ability to generate income and revenue (Paul H December 1998). From that perspective, customer service should be included as part of an overall approach to systematic improvement. A customer service experience can change the entire perception a customer has of the organization. Customer service is a system of activities of a company or organization that comprises customer support
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
system, complaint processing, speed of complaint processing, ease of reporting complaint and friendliness when reporting complaint (Kim, park and jeong, 2004). 6.7Personal Interaction:
Berger maintains a very good relationship with their customers and dealers. Marketing department co-ordinates various events and activities as part of Berger‟s Corporate Social Responsibilities. For the last two years, Berger has been contributing to the welfare of autistic and differently challenged children of Bangladesh. In add ition to that, the department is also involved in organizing BAEA (Berger Award for Excellence in Architecture), BASAB (Berger A ward for the Students of Architecture, BUET), BYPAC (Berger Young Painters‟ Art Co mpetition), Scholarship Program for the students of Architecture, Khulna University etc. The personal interaction is acknowledged to represent one of the key issues in business and industrial marketing, both in terms of practice and theory. Organizational relationships are alwa ys a result of the actions of the individuals representing the organiz ations (Granovetter, 1985) and social relationships form the channel for doing business (Halinen and To¨ rnroos, 1998). Personal interaction was defined as a key element of interaction between organizations already in the interaction approach (Ha kansson, 1982). Later research has defined basic and complex functions for social relationships, with positive and possibly negative influences on business relationships (Halinen and Salmi, 2001).The variety of the personal interaction in project business relationships has been recognized at the community level in terms of relevant actors in the project marketing milieu, a concept introduced by Cova et al (1996). Accordingly, themilieu refers to the nature of the context in which project business firms operate. Within th e milieu, project business firms have to generate or maintain credibility and to be a part of informational and social networks through personal interaction by individuals representing them. Cova and Salle (2000) emphasize community level rituals in the interaction during the sleepin g relationship phase. 6.8Customer satisfaction:
Berger's one of the prime objectives is to provide best customer support-connecting consumers to technology through specialized services like free technical advice on surface preparation, color consultancy, special color schemes etc. To bolster customer satisfaction,
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Berger offers Home Decor Service from where one can get an array of services pertaining to painting. Satisfaction is a “positive affective state resulting from the appraisal of all aspects of a firm‟s working relationship with another firm” (Anderson and Narus, 1984, p. 66). Consistent with this view, satisfaction encompasses economic and noneconomic components. Economic satisfaction is defined as a “Positive affective response to the economic rewards that flow from the rel ationship with its partner, such as sales volume and margins”, while non-economic satisfaction is a “positive affective response to the non-economic, psychosocial aspects of its relationship, in that interactions with the exchange partner are fulfilling, gratifying, and easy” (Geyskens et al, 1999). The relationship between economic and noneconomic components of scales for measuring satisfaction differs considerably among studies (Geyskens et al, 1999). Several researchers po int out that customer satisfaction either directly (Yi, 1990; Szymanski and Hen ard, 2001; Spiteri and Dion, 2004; Woo and Ennew, 2004; Russell-Bennett et al., 2007) or indirectly through commitment (Wetzels et al., 1998; Abdul-Muhmin, 2002, 2005; Hennig-Thurau et al., 2002; Caceres and Paparoidamis, 2007) affects customer loyalty, which is on e of the main marketing goals of firms (Berry and Parasuraman, 1991). In addition, the research on satisfaction has mostly been carried out in consumer markets, while not so much is known about satisfaction and its antecedents in business-to-business markets (Patterson et al, 1997; Abdul-Muhmin, 2002, 2005; Spiteri and Dion, 2004; Russell-Bennett et al, 20 07). That there is a shortfall of research in this area has also been pointed out by Sheth and Sharma (2006) in their overview of the surpluses and shortages in business-to-business marketing theory and research. The authors identify organizational satisfaction as one of the areas that ma y generate theory-based empirical research, and point out that the understanding of satisfaction in business-to-business marketing is still limited. One way of addressing the link between customer value and satisfaction is therefore to study value as a formative construct. On the oth er hand, however, Devaraj et al. (2001) and Spiteri and Dion (2004) raised the question of whe ther we really need customer value as a construct. In their discussion they rely on Iacobucci e t al. (1994), who were the first to observe that all that satisfaction research needs is the inclusion of price (besides the relationship benefits) as another determinant of satisfaction.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
7.0 Framework
This paper attempted to bring the level of satisfaction and loyalty among the Berger paint users. Researchers have tried to put the relevant factors which influence the customers. This research was built upon using the following framework. The framework consists of six (7) independent variables and one (01) dependent variable surrounding the consumer perception regarding Berger Paints. The framework for the projected study is pr esented below:
Product cost Product quality Delivery performance Supplier
Customer satisfaction
Time-to-market Service support Personal Interaction
Dependent Variable (DV)
Independent Variable (IV)
Framework of Research Variable and their Relationships F igur e 1.0:
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
8.0 Questions and Hypothesis Researcher question:
Q1: Is there any positive relationship between Product co st and Customer satisfaction. Q2: Is there any positive relationship between Product quality and Customer satisfaction. Q3: Is there any positive relationship between Delivery performance and Customer satisfaction. Q4: Is there any positive relationship between Supplier and Customer satisfaction. Q5: Is there any positive relationship between Time-to-market and Customer satisfaction. Q6: Is there any positive relationship between Service supp ort and Customer satisfaction. Q7: Is there any positive relationship between Personal interaction an d Customer satisfaction.
Hypothesis question:
H1: No there is no positive relationship between Product cost and Customer satisfaction. H2: There is a positive relationship between Product quality and Customer satisfaction. H3: There is a positive relationship between Delivery performance and Customer satisfaction. H4: There is a positive relationship between Sup plier and Customer satisfaction. H5: There is a positive relationship between Time-to-market and Cu stomer satisfaction. H6: There is a positive relationship between Service support and Customer satisfaction. H7: There is a positive relationship between Personal interaction and Customer satisfaction.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
9.0 The Research Design- Methods and Procedures 9.1 Research design:
The projected framework (Figure1.0) represented the outline and arrangement of relationships among the set of considered variables. The research question and hypotheses clearly support this model. In this study, the researchers are going to investigate what are the main reason (Product cost, Product quality, Delivery performance, Supplier, Time to market, Service support, and Personal interaction) that effect in consumer mind (Customer satisfaction) to use Berger paints. When researcher investigates the effects of the measuring variables and analysis the relationships among variables, the design is known as co-relational (Graziano & Raulin, 1997; Zikmad, 2000). That is why a Co-relational research design has been selected in order to find out the appropriate answer of the research question and to test the hypotheses. The model also suggests these types of design. The pr esent “Descriptive” research methodology uses a correlation study to establish the existence of relationships between the measured variables. In this research the, researchers intend to identify whether any relationships exists between these measured variables or not. A Co-relational study provides a measure of the degree between two or more variables. Therefore, the recent study will be characterized as a Corelational study. With the above findings in the literature, this study aims to inspect the possible relationships among Product cost, Product quality, Delivery performance, S upplier, Time to market, Service support, and Personal interaction with Customer satisfaction of Berger paints. 9.2 Sampling: Sample unit:
To done this research accurately researcher targeted the population who has currently using Berger paints. Sampling technique will be simple random sampling under the probability sampling method. Cooper and Schindler (2003) stated that in this type of probability sampling method each population element is known and has an equal chance of selection.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Sample Size:
Sample size relates to how many people to pick for the study. For this kind of study researcher need to do select a sample size. Researcher picked both male and female from different ages and professional back ground and t he sample size was N=40 . The study will be conducted only in Dhaka city due to time and budget constraints. This research is a Quantitative Research. Sample Procedure:
Researcher used probability sampling to collect information. Researcher used purposive probability sampling to know the characteristics or experiences, attitudes, perception of participants. Here researcher selected participants randomly and give them the questionnaire so that we can know about all those characteristics. 9.3 Instruments:
Questionnaires will permit us to gather information that cannot be found elsewhere from any secondary information such as books, newspapers, and internet resources. So the questionnaire survey is the most successful method for this study to collect the data. Researcher used a structured questionnaire. In a structured questionnaire, quantitative data is required. Because of this reason, the researcher will use questionnaire. According to interval scale the response choices will be arranged. There are five (5) response choices. Five-point of liker type scales were used in all measures. These are:
Five-point of liker type scales F igur e 2.0:
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
9.4 Data Collection, types of data and sources:
There are two types of data collection Primary Data and Secondary Data. Primary Data are those collected for the first time. Secondary Data are those which have already been collected and analyzed by someone else. In the context of Bangladeshi people, researcher used primary data to examine the research problem and verify hypothesis. The researcher use questionnaire method to collect data from the primary sources. In this study mostly primary data will be used to draw a recommendation. Researcher confirmed respondents that all the data collected from them will be kept confidential and exclusively used for academic purposes and their individual identity would be kept undisclosed individuals, each taking Eighteen (18) questionnaires to be filled out by respondents from the devised sample. While filling out the questionnaires the researchers assisted the respondents to get a better idea of their actual behaviors to minimize the margin of error. 9.5 Data Analysis/ Result Analysis: 9.5.1 Frequencies analysis:
The sample consists of 34 male and 6 female Berger Paint users. 85% of male and 15% of female Berger Paints user participates in this survey which is shown a t Table 1.1 Among the responding 19Berger Paint users age was between 15-25 years. 18Berger Paint users were between ages 26-35. In between 36-45 ages there were 3Berger Paint users and No user was age between 46 and above, which is shown in Table 1.2. There are four income ranges. Twenty eight respondents (28) approximately 70% were in 5000to-15,000 tk. range. Five (27%) respondent was in the range of 16,000-25,000 taka. In between26, 000-35,000 there was only one (1) respondent. No respondent was above 36,000 ranges which is shown at Table 1.3. 9.5.2 Crosstabs Analysis:
Cross-tabulation is an efficient way of presenting the relation between two or more variables. Researcher surveyed 40 respondents with different gender, age and income. The resonance rate is 100%. Table 2.1 shows that between 5,000-15,000 income ranges there are 22
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
male and 6female. Again 16,000-25,000 income range there is 11 male and 0female respondents. Only one male respondent was having income 26,000-35,000. Table 2.2 shows that age between15-25, 17 people has income 5,000-15,000 and 2 people has
income. Age between 26-35, 11 people has income 5,000-15,000. 6 people has income 16,00025,000 and just one people have income 26,000-35,000. And age between 36-45, just 3 people has income 26,000-35,000. 9.5.3 Correlation analysis:
Correlation analysis was conducted on all variables to ex plore the relationship between variables. The bivariate correlation procedure was subject to a two tailed of statistical significance at two different levels highly significant (p<.01) and significant (p<.05). According to Nadim Jahangir the classification of correlation coefficient is as follows:
0.0 to 0.2 Very weak, negligible 0.2 to 0.4 Weak, low 0.4 to 0.7 Moderate 0.7 to 0.9 Strong, high, marked 0.9 to 1.0 Very strong, very high
F igur e 3.0: The classification of correlation coefficient
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
9.5.4 Relationships between Product Cost and Customer satisfaction:
According to spearman Table: 3.0, correlation coefficient between Customer satisfaction and Product cost is -.205 shows negative relationship between two variables. The Spearman rho for the correlation between Customer satisfaction and Product cost frequen cy is (rho = -.205) that represents Sperman rho is negative which means that there no relationship between two variables. This suggests that changes in one variable are not strongly correlated with changes in the second variable. So we could conclude that our variables negatively correlated. The Sig. (2-Tailed) value in the analysis is .204 which is greater than conventional p value of .05. Because of this we can conclude that there is no statistically significant correlation between two va riables. That means, increases or decreases in one variable do not significantly relate to increases or decreases in second variable. According to Pearson Table: 4.0, correlation coefficient between Customer satisfaction and Product cost is -.158shows negative relationship between two variables. T he Pearson‟s r for the correlation between the Customer satisfaction and Product cost frequency is (r = -.158, p>0.05) that represents Pearson‟s r is negative which means that there is a no relationship between two variables. This suggests that changes in one variable negatively correlated with changes in the second variable. So we could conclude that our variables negatively correlated. The Sig. (2Tailed) value in the analysis is .332which is greater than .05. Because of this we can conclude that there is no significant correlation between two variables. That me ans, increases or decreases in one variable do not significantly relate to inc reases or decreases in second variable. 9.5.5 Relationships between Product quality and Customer satisfaction:
According to spearman Table: 3.1, correlation coefficient between Product quality and Customer satisfaction is =.034 shows positive relationship between two variables. The Spearman rho for the correlation between the Customer satisfaction and Product quality frequency is (rho = .034) that represents Sperman rho is weak and low which means that there is a weak relationship between two variables. This suggests that changes in one variable are not strongly correlated with changes in the second variable. So we could conclude that our variables weakly correlated. The Sig. (2 Tailed) value in the analysis is .834 which is greater than conventional p value of .05. Because of this we can conclude that there is no statistically significant correlation between two
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
variables. That means, increases or decreases in one variable do not significantly relate to increases or decreases in second variable. According to Pearson Table: 4.1, correlation coefficient between Customer satisfaction and Product cost is .002 shows positive relationship between two v ariables. The Pearson‟s r for the correlation between Product quality and Customer satisfaction frequency is (r = .002, p>0.05) that represents Pearson‟s r is very weak which means that there is a weak relationship between two variables. This suggests that changes in one variable weakly correlated with changes in the second variable. So we could conclude that our variables weakly correlated. The Sig. (2-Tailed) value in the analysis is .991 which is greater than .05. Because of this we can conclude that there is no statistically significant correlation between two variables. That means, increases or decreases in one variable do not significantly relate to increases or decreases in second variable. 9.5.6Relationships between Delivery Performance and Customer satisfaction:
According to spearman Table: 3.2, correlation coefficient between Delivery Performance and Customer satisfaction is =.219 shows positive relationship between two variables. The Spearman rho for the correlation between the Customer satisfaction and Delivery Performance frequency is (rho = .219) that represents Sperman rho is weak and low which means that there is a weak relationship between two variables. This suggests that ch anges in one variable are not strongly correlated with changes in the second variable. So we could conclude that our variables weakly correlated. The Sig. (2 Tailed) value in the analysis is .174 which is greater than conventional p value of .05. Because of this we can conclude that there is no statistically significant correlation between two variables. That means, increases or decreases in o ne variable do not significantly relate to increases or decreases in second variable. According to Pearson Table: 4.2, correlation coefficient between Customer satisfaction and Delivery Performance is .304 shows positive relationship between two variables. The Pearson‟s r for the correlation between Delivery Performance and Customer satisfaction frequency is (r = .304, p>0.05) that represents Pearson‟s r is weak and low which means that there is a weak relationship between two variables. This suggests that changes in one variable weakly correlated with changes in the second variable. So we could conclude that our variables weakly correlated. The Sig. (2-Tailed) value in the analysis is .056 which is greater than .05. Because of this we can
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
conclude that there is no statistically significant correlation between two variables. That means, increases or decreases in one variable do not significantly relate to increases or decreases in second variable. 9.5.7Relationships between Supplier and Customer satisfaction:
According to spearman Table: 3.3, correlation coefficient between Supplier and Customer satisfaction is =.106 shows positive relationship between two variables. The S pearman rho for the correlation between the Customer satisfaction and Supplier frequenc y is (rho = .106) that represents Sperman rho is very weak and low which means that there is a very weak relationship between two variables. This suggests that changes in one variable are not strongly correlated with changes in the second variable. So we could conclude that our variables weakly correlated. The Sig. (2 Tailed) value in the analysis is .513 which is greater than conventional p value of .05. Because of this we can conclude that there is no statistically significant correlation between two variables. That means, increases or decreases in one variable do not significantly relate to increases or decreases in second variable. According to Pearson Table: 4.3, correlation coefficient between Customer satisfaction and Supplier is .150 shows positive relationship between two variables. The Pearson‟s r for the correlation between Supplier and Customer satisfaction frequency is (r = .1 50, p>0.05) that represents Pearson‟s r is very weak and low which means that there is a weak relationship between two variables. This suggests that changes in one variable weakly correlated with changes in the second variable. So we could conclude that our variables weakly correlated. The Sig. (2Tailed) value in the analysis is .355 which is greater than .05. Because of this we can conclude that there is no statistically significant correlation between two variables. That means, increases or decreases in one variable do not significantly relate to increases or decreases in second variable.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
9.5.8 Relationships between Time To Market and Customer satisfaction:
According to spearman Table: 3.4, correlation coefficient between Time To Market and Customer satisfaction is =.061 shows positive relationship between two variables. The Spearman rho for the correlation between the Customer satisfaction and Time To Market frequency is (rho = .061) that represents Sperman rho is very weak and low which means that there is a very weak relationship between two variables. This suggests that changes in one variable are not strongly correlated with changes in the second variable. So we could conclude that our variables weakly correlated.
F igur e 4.0: Correlation matrix
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
The Sig. (2 Tailed) value in the analysis is .708 which is greater than conventional p value of .05. Because of this we can conclude that there is no statistically significant correlation between two variables. That means, increases or decreases in one variable do not significantly relate to increases or decreases in second variable. According to Pearson Table: 4.4, correlation coefficient between Customer satisfaction and Time To Market is .132 shows positive relationship between two variables. The Pearson‟s r for the correlation between Time To Market and Customer satisfaction frequency is (r = .132, p>0.05) that represents Pearson‟s r is very weak and low which means that there is a weak relationship between two variables. This suggests that changes in one variable weakly correlated with changes in the second variable. So we could conclude that our variables weakly correlated. The Sig. (2-Tailed) value in the analysis is .418 which is greater than .05. Because of this we can conclude that there is no statistically significant correlation between two variables. That means, increases or decreases in one variable do not significantly relate to increases or decreases in second variable. 9.5.9 Relationships between Service Support and Customer satisfaction:
According to spearman Table: 3.5, correlation coefficient between Service Support and Customer satisfaction is =.106 shows positive relationship between two variables. The Spearman rho for the correlation between the Customer satisfaction and Service Support frequency is (rho = .106) that represents Sperman rho is very weak and low which means that there is a very weak relationship between two variables. This suggests that changes in one variable are not strongly correlated with changes in the second variable. So we could conclude that our variables weakly correlated. The Sig. (2 Tailed) value in the analysis is .516 which is greater than conventional p value of .05. Because of this we can conclude that there is no statistically significant correlation between two variables. That means, increases or decreases in one variable do not significantly relate to increases or decreases in second variable. According to Pearson Table: 4.5, correlation coefficient between Customer satisfaction and Service Support is .069 shows positive relationship between two v ariables. The Pearson‟s r for the correlation between Service Support and Customer satisfaction frequency is (r = .069, p>0.05)
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
that represents Pearson‟s r is very weak and low which means that there is a weak relationship between two variables. This suggests that changes in one variable weakly correlated with changes in the second variable. So we could conclude that our variables weakly correlated. The Sig. (2Tailed) value in the analysis is .671 which is greater than .05. Because of this we can conclude that there is no statistically significant correlation between two variables. That means, increases or decreases in one variable do not significantly relate to increases or decreases in second variable. 9.5.10 Relationships between Personal Interaction and Customer satisfaction:
According to spearman Table: 3.6, correlation coefficient between Personal Interaction and Customer satisfaction is =.471 shows positive relationship between two variables. The Spearman rho for the correlation between the Personal Interaction and Customer satisfaction frequency is (rho = .471, p<0.01) that represents Spearman rho is moderate which means that there is a moderate relationship between two variables. This suggests that changes in one variable are moderately correlated with changes in the second variable. So we could conclude that our variables moderately correlated. The Sig. (2-Tailed) value in the analysis is .002 which is less than conventional p value .05. Because of this we can conclude that there is statistically highly significant correlation between two variables. That means, increases or decreases in o ne variable do significantly relate to increases or decreases in second v ariable. According to Pearson Table: 4.6, correlation coefficient between Personal Interaction and Customer satisfaction is .393 shows positive relationship between two variables. The Pearson‟s r for the correlation between the Personal Interaction and Customer satisfaction frequency is (r = .393, p<0.05) that represents Pearson‟s r is moderate which means that there is a moderate relationship between two variables. This suggests that changes in one variable moderately correlated with changes in the second variable. So we could conclude that our variables moderately correlated. The Sig. (2-Tailed) value in the analysis is .012 which is less than .05. Because of this we can conclude that there is statistically significant correlation between two variables. That means, increases or decreases in one variable do significantly relate to increases or decreases in second variable.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
9.5.11 Reliability Analysis:
Cronbach's alpha is a measure of internal con sistency, that is, how closely related a set of items are as a group. Reliability analysis in SPSS is used to measure the internal consistency of the questionnaire; Reliability is the extent to which measurement of questionnaire. If the reliability of scale is below .5 then it should b e deemed unacceptable. The most highly recommended measure of internal consistency is provided be cronbach‟s Alpha (α) as it provides a good reliability estimate in most situations. 50-.60 coefficient or cronbach‟s alpha is sufficient. In this study the coefficient alpha for different constructs were computed using the reliability procedure in SPSS (version 17.0).
Cronbach's alpha
Internal consistency
α ≥ 0.9
Excellent
0.8 ≤ α < 0.9
Good
0.7 ≤ α < 0.8
Acceptable
0.6 ≤ α < 0.7
Questionable
0.5 ≤ α < 0.6
Poor
α < 0.5
Unacceptable
A commonly accepted rule of thumb for describing internal consistency using F igur e 5.0: Cronbach's alpha.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Case Processing Summary N Cases
Valid Excluded Total
% 40
100.0
0
.0
40
100.0
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach's Alpha
N of Items
.776
18
Reliability analysis result F igur e 6.0: As it can be seen above Cronbach alpha = .774 which is > 0.7 thus the questionnaire methods can be deemed fairy satisfactory.
10.0Discussion:
According to the correlation and reliability analysis in SPSS Product quality, Delivery performance, Supplier, Time to market, Service support, and Personal interaction are positively related with Customer satisfaction. And Product cost is negatively related with customer satisfaction. Because the customers think that they do no t charge very high price. From the study it is being also observed that Product cost, Product quality, Delivery performance, Supplier, Time to market, Service support, and Personal interaction have relationship with Customer satisfaction. Because, according to spearmen and Pearson‟s analysis value, doesn‟t falls in degree of freedom number, in every analysis it rejects the null h ypothesis and accept the alternative hypothesis which means there is a relationship in between Independent Variables (IV)and customer satisfaction (DV). And we have found that Personal Interaction and Customer satisfaction shows very positive relationship. By those results we can sa y that this thing is the main reason that people are using Berger paints.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
11.0 Significance of the Study 11.1 Business significance:
To stay in the market a company needs to know about its customers perception. For this purpose many company do research on other company to know their customer better. This kind of research mostly done based on secondary information. This research hopefully will help various paint industry to find out the factors of cu stomer satisfaction and loyalty. This research also helps an organization to know more about product quality, branding, supply, delivery, and customer relation. This study reveals the relationship between the Berger paint users with the product quality, delivery performance, customer support respectively: anyone who will go through these, get crystal clear idea about those factors. 11.2 Academic significance:
Research helps student to understand what is going on around them, it improves their knowledge. Student done many researches based on their academic purpose. This research will help students and also faculties to understand the independent variables (Product cost, Product quality, Delivery performance, Supplier, Time to market, Service support, and Personal interaction) in detail and how they are related with Customer satisfaction. Faculties can give their students short assignment based on that research. Once such understanding has been attained by future academics it is the researchers belief that the variables tested and data collected in this research will serve as a valuable source for secondar y data in future research, providing a guide to creating a proper research framework. 11.3 Implication for future research:
Those who want to do research to find out the, factors of customer satisfaction and loyalty in manufacturing industry this research will help them to understand those factors briefly. It could also be effective and efficient analysis for the future researchers. Here researcher an alysis various kinds of data that is given in various journals, newspapers, and websites so, future researchers would get the information about the scale that has been used in this study and hypothesis testing will give them an idea whether there is a relationship between this research variables or not
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
and reliability tests will give an information whether the question adjust with the variable or not. 12.0 Recommendation
Berger paints is a company, which has so far shown good performance and holds the strongest position in the Painting market. It has a management wise enough to think of and implement an array of financial services through diversification program. It has good quality mid and bottom level management which gives more time for top management to think and plan for new things. It is possible to create better future in the paint if Berger paints take action for producing more qualitative product which is better than other multi-national company. Now a day‟s most of the business sector is becoming service oriented. Berger Paint has a well established product in the market and is enjoying a high market share. In such a scenario, Berger can now fully concentrate on providing a better service to customer to improve satisfaction level, create new customers, and retain existing customers. From the an alysis, the researcher has realized that the main reason of Berger paint usage is their service support and personal interaction. Dealers are a major party to influence customers to purchase Berger products. If they are satisfied, then customers will be satisfied. These some steps can be taken for the betterment of the company. -Depot should intensify its quality of client service. Customer services must be made d ynamic and prompt. -Painting industry should be more innovative and d iversified in its services. -Put more emphasis on the product services and create more quality product. -Interactive Information system should be developed. -Should introduce modern technology. -Should develop their E-commerce system. -Should always monitor the performance of its competitors in the field o f Foreign Trade and National Trade.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Merits and demerits of' any company is a common feature. These were present, are pre sent and in future will present. Along with this difficult y Berger c an achieve its marketing objectives like market expansion, increasing sales volumes, employing more peo ple, earning goodwill, providing pro per s ervic es to the mass people through act ive, efficient, experienced and energetic employees and workers. References:
Anderson, E.W. & Fornell. C, (1994). A framework for comparing customer satisfaction a cross individuals and product categories. Journal of Economic Psychology, Vol. 12, 267-86. Anderson, J.C. and Narus, J.A. (1984), “A model of the distributor‟s perspective of distributor manufacturer working relationships”, Journal of Marketing , Vol. 48No. 4, pp. 62-74. Armstrong, G, & Kotler. P, (1996). Principles of Marketing, seventh edition. India: PrenticeHall. Blackstone, J. and Cox, J. (Eds) (2005), AP ICS Dictionary, 11th edition, APICS – The Association for Operations Management , Alexandra, VA. Bowersox, D.J. and Closs, D.J. (1996), Logistical Management: the Integrated Supply Chain Process, The McGraw-Hill Companies, Inc, Columbus, OH. Cova, B. and Salle, R. (2000), “Rituals in managing extra business relationships in international project marketing: a conceptual framework”, International Business Review, Vol. 9 No. 6, pp. 669-85. Crosby, P.B (1979), Quality is Free: The Art of Making Quality Certain, New American Library, New York, NY. Dyer, J.H. and Singh, H. (1998), “The relational view: cooperative strategy and sources of inter organizational competitive advantage”, Academy of Management Review, Vol. 23. No. 4, pp. 660-79. Ellram, L.S. (1991), “Supply chain management: the industrial organization perspective”, International Journal of Physical Distribution & Logistics Management , Vol. 21 No. 1, pp. 13-22. Forker, L.B. (1997), “Factors affecting supplier quality performance”, Journal of Operations Management, Vol. 15 No. 4, pp. 243-69. Forslund, H. and Jonsson, P. (2007), “Dyadic integration of the performance management process: a delivery service case study”, International Journal of Physical Distribution & Logistics Management, Vol. 37 No. 7, pp. 546-67.
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Fynes, B., Voss, C. and Burca, S. (2005), “The impact of supply chain relationship dynamics on manufacturing performance”, International Journal of Operations & Production Management , Vol. 25 No. 1, pp. 6-21. Garvin, D.A (1987), “What does product quality really mean?”,Sloan Management Review, Vol. 65 No.6, pp.101-9. Granovetter, M. (1985), “Economic action and social structure: the problem of embeddedness”, American Journal of Sociology, Vol. 91 No. 3, pp. 481-510. Halinen, A. and To¨ rnroos, J.-A, (1998), “The role of embeddedness in the evolution of business networks”, Scandinavian Journal of Management , Vol. 14, pp. 187-205. How to Approach Customer Experience Management. Gartner.com. 2004-12-27 Neumeier, Marty (2004), The Dictionary of Brand . Jahangir, Nadim. (2003). Perceptions of Power: A Cognitive Perspective of Nationalized Commercial Banks in Bangladesh, Dhaka: SUBARNA. Krause, D.R. (1999), “The antecedents of buying firms‟ efforts to improve suppliers”, Journal of Operations Management , Vol. 17 No. 2, pp. 205-24. Kraut, R. J. Olson. M. Banaji. A. Bruckman. J. Cohen and M. Cooper, (2004), “Psychological Research Online: Report of Board of Scientific Affairs' Advisory Group on the Conduct of Research on the Internet ,” American Psychologist, 59(4): 1– 13. Kulwant S. Pawar, Unny Menon and Johann C.K.H. Riedel, “Time to Market”, Integrated Manufacturing Systems, Vol. 5 No. 1, 1994, pp. 14-22. Mattsson, S.-A. (2004), “Logistical implications of delivery lead time variability and flexibility”, Proceedings of the NOFOMA Conference in Linko ¨ ping,Linko ¨ping University, Linkoping. Pfohl, H-Chr. and Buse, H.P. (2000), “Inter -organizational logistics systems in flexible production networks: an organizational capabilities perspective”, International Journal of Physical Distribution & Logistics Management , Vol. 30 No. 5, pp. 388-408. Pirsing, R.M, (1992), Lila: An Inquiry into Morals, Bantam Books, New York, NY. Selnes, F. (1993), “An examination of the effect of product performance on brand reputation, satisfaction and loyalty”, European Journal of Marketing , Vol. 27 No. 9, pp. 19-35. Sheldon et al, 1991. A generic activity-dictionary-based method for product costing in mass customization. Shin, H., Collier, D.A. and Wilson, D.D. (2000), “Supply management orientation and supplier/buyer performance”, Journal of Operations Management , Vol. 18, pp. 317-33.
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Ulaga, W. and Eggert, A. (2006 and 2003), “Value-based differentiation in business relationships: gaining and sustaining key supplier status”, Journal of Marketing , Vol. 70 No. 1, pp. 11936. Whitney, D.E. (1987), “Manufacturing by design: a symbiosis”, IEEE Spectrum, Vol. 24 No. 5, pp. 47-54. Whitney, D.E, The Strategic Approach to Produ ct Design: Use of Product Design Teams in Manufacturing , in Cleland and Bidanda (Eds), Automated Factory Handbook, TRP, 1990. Zhao, M. and Stank, T.P. (2003), “Interactions between operational and relational capabilities in fast food service delivery”, Transportation Research Part E: Logistics and Transportation Review, Vol. 39 No. 2, pp. 161-73.
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Appendix A QUESTIONNAIRE
This research is conducted for academic purposes only. So please do not hesitate to answer. Your information will be kept confidential. Personal Information 1. Male
Female
2. Age: 15-25
3. Income per month:
Taka 5000-15000
26-35
Taka 16000-25000
36-45
Taka 26000-35000
46 and above
36000 and above
1
2
3
Strongly
Disagree
Neither Agree
Disagree
4
5
Agree Strongly
nor Disagree
Agree
Please circle the number, which most closely responds to your thinking.
1. The dealers charge us a much higher price.
1
2
3
4
5
2. Berger provides us with better product quality.
1
2
3
4
5
3. Berger meets our quality standards.
1
2
3
4
5
4. Berger products are more reliable.
1
2
3
4
5
5. Berger provides more consistent product quality over time.
1
2
3
4
5
6. Berger performs better in meeting delivery.
1
2
3
4
5
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
7. Deliveries from Berger are more accurate.
1
2
3
4
5
8. Berger knows better how to improve existing products.
1
2
3
4
5
9. Berger performs better at presenting us with new products.
1
2
3
4
5
10. Berger helps more in improving cycle time.
1
2
3
4
5
11. Berger helps us more in getting products to market faster.
1
2
3
4
5
12. Customer service is always available when we need information.
1
2
3
4
5
13. Customer service provides us with more appropriate information.
1
2
3
4
5
14. It is easier to work with Berger.
1
2
3
4
5
15. We have a better relationship with Berger.
1
2
3
4
5
16. There is better co-operation between Berger, dealers and ours.
1
2
3
4
5
17. Overall, we are very satisfied with the relationship with Berger.
1
2
3
4
5
18. Overall, this company treats us fairly.
1
2
3
4
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ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Appendixes B
SPSS frequencies Frequency Table 1.0 Statistics
Gender N
Age
Valid Missing
Income
40
40
40
0
0
0
Frequency Table 1.1 Gender
Frequency Valid
Male
Valid Percent
Cumulative Percent
34
85.0
85.0
85.0
6
15.0
15.0
100.0
40
100.0
100.0
Female Total
Percent
Frequency Table 1.2 A g e
Frequency Valid
Percent
Valid Percent
Cumulative Percent
15-25
19
47.5
47.5
47.5
26-35
18
45.0
45.0
92.5
36-45
3
7.5
7.5
100.0
40
100.0
100.0
Total
33
34
ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Frequency Table 1.3 Income
Frequency Valid
Percent
Valid Percent
Cumulative Percent
5000-15000
28
70.0
70.0
70.0
16000-25000
11
27.5
27.5
97.5
26000-35000
1
2.5
2.5
100.0
40
100.0
100.0
Total
Crosstab Table 2.0 C a s e Pr o c e s s i n g S u m m a r y
Cases Valid N Gender * Income Age * Income
Missing Percent
N
Total
Percent
N
Percent
40
100.0%
0
.0%
40
100.0%
40
100.0%
0
.0%
40
100.0%
Crosstab Table 2.1 G e n d e r * In c o m e C r o s s t a b u l a t i o n
Count Income 5000-15000 Gender
Male Female
Total
16000-25000
26000-35000
Total
22
11
1
34
6
0
0
6
28
11
1
40
35
ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Crosstab Table 2.2 Age * Income Cross tabulation
Count Income 5000-15000 Age
16000-25000
26000-35000
Total
15-25
17
2
0
19
26-35
11
6
1
18
36-45
0
3
0
3
28
11
1
40
Total
Nonparametric Correlations Spearman’s rho Table 3.0 Correlations
Customer Product Cost Spearman's rho
Product Cost
Correlation Coefficient Sig. (2-tailed) N
Customer Satisfaction
Correlation Coefficient Sig. (2-tailed) N
Satisfaction
1.000
-.205
.
.204
40
40
-.205
1.000
.204
.
40
40
36
ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Nonparametric Correlations Spearman’s rho Table 3.1 Correlations
Customer Product Quality Spearman's rho
Product Quality
Correlation Coefficient
1.000
.034
.
.834
40
40
Correlation Coefficient
.034
1.000
Sig. (2-tailed)
.834
.
40
40
Sig. (2-tailed) N Customer Satisfaction
Satisfaction
N
Nonparametric Correlations Spearman’s rho Table 3.2 Correlations
Spearman's rho
Delivery Performance
Correlation Coefficient
Customer
Performance
Satisfaction
1.000
.219
.
.174
40
40
Correlation Coefficient
.219
1.000
Sig. (2-tailed)
.174
.
40
40
Sig. (2-tailed) N Customer Satisfaction
Delivery
N
37
ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Nonparametric Correlations Spearman’s rho Table 3.3 Correlations
Customer Supplier Spearman's rho
Supplier
Correlation Coefficient
1.000
.106
.
.513
40
40
Correlation Coefficient
.106
1.000
Sig. (2-tailed)
.513
.
40
40
Sig. (2-tailed) N Customer Satisfaction
Satisfaction
N
Nonparametric Correlations Spearman’s rho Table 3.4 Correlations
Customer Time To Market Spearman's rho
Time To Market
Correlation Coefficient
1.000
.061
.
.708
40
40
Correlation Coefficient
.061
1.000
Sig. (2-tailed)
.708
.
40
40
Sig. (2-tailed) N Customer Satisfaction
Satisfaction
N
38
ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Nonparametric Correlations Spearman’s rho Table 3.5 Correlations
Customer Service Support Spearman's rho
Service Support
Correlation Coefficient
1.000
.106
.
.516
40
40
Correlation Coefficient
.106
1.000
Sig. (2-tailed)
.516
.
40
40
Sig. (2-tailed) N Customer Satisfaction
Satisfaction
N
Nonparametric Correlations Spearman’s rho Table 3.6 Correlations
Spearman's rho
Personal Interaction
Correlation Coefficient
Personal
Customer
Interaction
Satisfaction
1.000
Sig. (2-tailed) N Customer Satisfaction
Correlation Coefficient Sig. (2-tailed) N
**. Correlation is significant at the 0.01 level (2-tailed).
.471
.
.002
40
40
.471
1.000
.002
.
40
40
39
ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Correlations: Using Pearson Table 4.0 Correlations
Customer Product Cost Product Cost
Pearson Correlation
Satisfaction 1
-.158
Sig. (2-tailed) N Customer Satisfaction
Pearson Correlation Sig. (2-tailed) N
.332 40
40
-.158
1
.332 40
40
Correlations: Using Pearson Table 4.1 Correlations
Customer Product Quality Product Quality
Pearson Correlation
Satisfaction 1
Sig. (2-tailed) N Customer Satisfaction
.002 .991
40
40
Pearson Correlation
.002
1
Sig. (2-tailed)
.991
N
40
40
40
ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Correlations: Using Pearson Table 4.2 Correlations
Delivery Performance
Delivery
Customer
Performance
Satisfaction
Pearson Correlation
1
.304
Sig. (2-tailed)
.056
N Customer Satisfaction
40
40
Pearson Correlation
.304
1
Sig. (2-tailed)
.056
N
40
40
Correlations: Using Pearson Table 4.3 Correlations
Customer Supplier Supplier
Pearson Correlation
Satisfaction 1
Sig. (2-tailed) N Customer Satisfaction
.150 .355
40
40
Pearson Correlation
.150
1
Sig. (2-tailed)
.355
N
40
40
41
ANTECEDENTS OF CUSTOMER SATISFACTION AND LOYALTY INBERGER PAINTS BANGLADESH LTD
Correlations: Using Pearson Table 4.4 Correlations
Customer Time To Market Time To Market
Pearson Correlation
Satisfaction 1
.132
Sig. (2-tailed) N Customer Satisfaction
.418 40
40
Pearson Correlation
.132
1
Sig. (2-tailed)
.418
N
40
40
Correlations: Using Pearson Table 4.5 Correlations
Customer Service Support Service Support
Pearson Correlation
Satisfaction 1
Sig. (2-tailed) N Customer Satisfaction
.069 .671
40
40
Pearson Correlation
.069
1
Sig. (2-tailed)
.671
N
40
40